http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 14.49Change: 0.01
R/$ = 10.50Change: -0.01
Au 1294.90 $/ozChange: 0.00
Pt 1407.50 $/ozChange: -5.50
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Nelson Mandela 1918 - 2013   Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science & Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Suppliers Directory Research Jobs Announcements Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
Aug 02, 2012

SA, Swaziland reaffirm commitment to R17bn cross-border rail link

Back
Natal|North-South Corridor|Public Enterprises|Democratic Republic Of Congo|South Africa|Swaziland|Tanzania|Zambia|Zimbabwe|Port Of Richards Bay|Richards Bay Coal Terminal|Coal-mining Frontier|Transport|Richards Bay|Malusi Gigaba|Ntuthuko Dlamini|Limpopo
natal|north-south-corridor|public-enterprises|democratic-republic-of-congo|south-africa|swaziland|tanzania|zambia|zimbabwe|port-of-richards-bay|richards-bay-coal-terminal|coal-mining-frontier|transport-industry-term|richards-bay|malusi-gigaba|ntuthuko-dlamini|limpopo
© Reuse this



South Africa and Swaziland signed a memorandum of understanding (MoU) on Thursday reaffirming their support of a new R17-billion, 146 km cross-border rail connection from Lothair, in Mpumalanga, to Sidvokodvo, in Swaziland.

The link would divert general freight from the existing heavy-haul corridor from Ermelo to the Port of Richards Bay, in KwaZulu-Natal, enabling Transnet to raise the yearly capacity of the coal line to over 90-million tons.

The privately owned Richards Bay Coal Terminal (RBCT) had a current nameplate capacity of 91-million tons, while the railway line had a theoretical capacity of less than 80-million tons.

During its 2011/12 financial year, Transnet Freight Rail (TFR) moved 67.7-million tons along the line to the RBCT, an 8.8% increase on the 62.2-million tons achieved in the prior year. During the current financial year the utility aimed to haul between 75-million tons and 77-million tons along the export corridor.

Under a larger R200-billion rail investment plan – itself the largest portion of the State-owned company’s R300-billion, seven-year market demand strategy to 2019 – Transnet intended to increase the capacity of the coal channel to Richards Bay by 44% to 98-million tons.

It also planned to increase its general freight flows by 113%, from 80-million tons to 170-million tons, over the same period and bolster the volumes of domestic coal moved by rail by more than 300%, from around 7-million tons to nearly 30-million tons.

The proposed rail link through Swaziland, which would be the first large-scale rail investment in Southern Africa since the construction of the Richards Bay line in 1976, could create additional general-freight capacity of 15-million tons.

Public Enterprises Minister Malusi Gigaba, who signed the MoU on behalf of South Africa, described the project as a forerunner for Transnet’s expansion plans into the Waterberg coalfields, which is considered South Africa’s next coal-mining frontier.

TFR was planning a phased opening of the Waterberg, with the first phase likely to facilitate the movement of 23-million tons and later phases raising overall capacity to as much as 80-million tons. But the immediate priority was to reduce congestion at Ermelo by diverting general freight through Swaziland.

Swaziland Public Works and Transport Minister Ntuthuko Dlamini said the connection, or ‘western link’, would reduce the cost of transport for the region and facilitate the competitive “export of goods to overseas markets”.

The two countries again committed to support project fundraising efforts, with Transnet expected to contribute about R12-billion and Swazi Rail about R5-billion. Questions, however, have been raised about whether Swaziland, which has serious fiscal constraints, will be in a position to meet its financial commitments to the venture.

Gigaba said the first phase would be a single line with crossing loops spaced approximately 40 km apart. The greater project, which consisted of four distinct areas, spanning three countries, would cost approximately R17-billion, excluding rolling stock, contingencies, escalations and engineering, procurement and construction management costs.

He added that the project was core to delivering the so-called strategic integrated project 1, or Sip 1 project, unlocking the northern mineral belt of the Limpopo province. The Presidential Infrastructure Coordinating Commission was overseeing the Sip 1 initiative.

In addition, it was aligned to the larger North-South Corridor proposal to link the regional economies of Southern Africa and further complement the existing coal feeder system and other bulk mineral corridors.

“We will now have improved access to Eastern seaboard ports as well as improved access to the Southern African logistics network and markets. And what is really exciting is that we will now have access to the North-South Corridor, which includes countries like Zimbabwe, Zambia, the Democratic Republic of Congo and Tanzania.”


 

Edited by: Creamer Media Reporter
© Reuse this Comment Guidelines
 
 
 
 
 
 
 
 
Other Mining News
While government is stating that acid mine drainage (AMD) in South Africa is not an insurmountable problem and that the country will certainly win the struggle, industry experts and activists are concerned that the true extent of the challenge has not yet been...
Labour Minister Mildred Oliphant
The leaders of South Africa's striking mining union and the chief executives of the world's three biggest platinum producers were set to meet on Thursday, in a renewed drive to end a crippling strike entering its thirteenth week. "They will be meeting directly with...
More
 
 
Latest News
Few would argue with the notion that unemployment, which stands at around 25% on the narrow definition as reported by Statistics South Africa, remains one of the country’s most pressing challenges. Fewer still could contest the view that South Africa’s education...
Renewable-energy projects, such as this Northern Cape solar farm, seen as key to low‐carbon energy supply.
Upfront investment costs will and should remain a critical consideration as South Africa moves to upscale and accelerate its infrastructure programmes. But one of the lead authors of the latest Intergovernmental Panel on Climate Change (IPCC) argues that the...
The barrier to efficient water service delivery in South Africa was not of a technological nature but rather related to legal and Constitutional challenges, Water Research Commission (WRC) CEO Dhesigen Naidoo said on Thursday. Opening a WRC debate under the theme...
More
 
 
Recent Research Reports
Steel 2014: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2014 report provides an overview of the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon steel and stainless...
Projects in Progress 2014 - First Edition (PDF Report)
This publication contains insight into progress at the delayed Medupi and Kusile coal-fired projects, in Mpumalanga and Limpopo respectively, as well as at the Ingula pumped-storage scheme, which is under construction on the border between the Free State and...
Automotive 2014: A review of South Africa's automotive sector (PDF Report)
The report provides insight into the business environment, the key participants in the sector, local construction demand, geographic diversification, competition within the sector, corporate activity, skills, safety, environmental considerations and the challenges...
Construction 2014: A review of South Africa's construction sector (PDF Report)
Construction data released during 2013 hints at a halt to the decline in the industry during the last few years, with some commentators averring that the industry could be poised for recovery. However, others have urged caution, noting that the prospects for a...
Electricity 2014: A Review of South Africa's Electricity Sector (PDF Report)
This report provides an overview of the state of electricity generation and transmission in South Africa and examines electricity planning, investment in generation capacity, electricity tariffs, the role of independent power producers and demand-focused initiatives,...
Defence 2013: A review of South Africa's defence industry (PDF Report)
Creamer Media’s 2013 Defence Report examines South Africa’s defence industry, with particular focus on the key players in the sector, the innovations that have come out of the defence sector, local and export demand, South Africa’s controversial...
 
 
 
 
 
This Week's Magazine
The Electronic Systems Laboratory (ESL) of the Department of Electrical and Electronic Engineering at Stellenbosch University is strongly reaffirming its position as one of South Africa’s leading centres for satellite technology and expertise. It is currently...
MORE IN SA Phase 2 should see local content on the mainline locomotive increase from 65% to 80% by the end of 2014
The world’s lowest-cost diesel-electric locomotive is not made in China, but in Pretoria, at RRL Grindrod Locomotives’ newly upgraded 30 000 m2 plant. The company’s locomotive pricing is “more competitive than any other original-equipment manufacturer (OEM)...
The South African Defence Review 2012, released to the public at the end of last month (despite the year given in its title) recommends the creation of the post of Chief Defence Scientist. This official would be responsible for the management of defence technology...
AltX-listed engineering technology company Ansys has been awarded an R188-million contract by Transnet to supply integrated dashboard display systems to the freight rail utility’s locomotives. Black-owned and controlled Ansys developed the bespoke integrated system...
South Africa’s sole nuclear power station Koeberg, which is located in the Western Cape, breached a major operations milestone on April 4, which marked the thirtieth anniversary of Unit 1 having been connected to the grid. Eskom, which operates the two-unit plant,...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks