Coal-line investment programme, South Africa

22nd September 2017

By: Sheila Barradas

Creamer Media Research Coordinator & Senior Deputy Editor

     

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Name and Location
Coal-line investment programme.

Location
The coal line is the main channel for export coal. It starts at the mines in Mpumalanga, extending through the Overvaal tunnel to the Richards Bay Coal Terminal (RBCT), in KwaZulu-Natal, South Africa.

Client
Transnet Freight Rail (TFR).

Project Description
The coal programme comprises the following key projects:
• Export coal expansion to 81-million tonnes a year – the programme combines investments in new infrastructure and rolling stock, most notably a comprehensive dual-voltage locomotive acquisition programme.
• Waterberg upgrade Stage II – this proposed project will grow rail capacity to six-million tonnes a year through incremental upgrades of the existing rail networks and yards using additional loops, while maintaining the existing axle loads, electrical upgrades and improved train control systems.
• Overvaal tunnel doubling – the condition of the current Overvaal tunnel is deteriorating and it provides only a single rail line; the plan is to construct a new double-track tunnel adjacent to the existing tunnel.

Potential Job Creation
Not stated.

Value
To date, R2.7-billion has been invested to expand capacity on the export coal line to 81-million tonnes a year. For the year ended March 31, 2017, R145-million was invested in the coal line expansion to upgrade yards, lines and electrical equipment.

Since inception, R126-million has been invested in the Waterberg project and, for the year ended March 31, 2017, R28-million was invested.

An amount of R3.5-billion has been approved for the doubling of the Overvaal Tunnel.

Duration
Not stated.

Latest developments
Execution of the Overvaal tunnel doubling project has not started, owing to further assessments being conducted for an alternative technology solution to develop the tunnel.

Key Contracts and Suppliers
Not stated.

On Budget and on Time?
Not stated.

Contact Details for Project Information
TFR corporate affairs Mike Asefovitz, tel +27 11 544 9585 or email Mike.Asefovitz@transnet.net.

Edited by Creamer Media Reporter

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