Name and Location
Coal-line export-channel expansion programme, South Africa.

Client
Transnet Freight Rail (TFR).

Project Description
TFR is expanding its coal export channel, which links the coalfields of Mpumalanga and the Waterberg, in Limpopo, to markets in Europe and Asia by increasing initial capacity on the corridor to 81-million tons a year and thereafter to 97.5-million tons a year. Tenders for a prefeasibility study to increase the capacity to 97.5-million tons a year will be issued in the near future to confirm the expansionary and sustaining investments.

The programme combines investments in new infrastructure and rolling stock, most notably a comprehensive dual-voltage locomotive acquisition programme.

The current infrastructure construction programme for the expansion to 81-million includes various sustaining investments and the upgrade of four yards at Blackhill, Saaiwater, Ermelo and Vryheid, 11 substations, five new substations and two locomotive workshops upgrades, with a new locomotive turntable at Richards Bay.

The work packages are being executed using a combination of in-houseresources and external design and supply contracts.

TFR has also brought forward the engineering and design work on the Overvaal second tunnel, owing to the operational challenges and risk associated with the single-line tunnel between Ermelo and Richards Bay. The tender for the feasibility study for the Overvaal tunnel has been awarded.

Value
The total expansion and sustaining capital investment for the coal and mineral system programme over the Market Demand Strategy period is currently estimated at R40.7-billion.

Duration
Not stated.

Latest developments
For the current year, R411-million has been invested in the coal line expansion for upgrading yards, lines and electrical equipment.

To support the expansion of the export coal line, 100 electric locomotives have been contracted to be acquired.

Twenty-eight electric locomotives for the coal line have been received and are undergoing testing. The expected completion for the remaining 72 locomotives date is September 2015.

Transnet has embarked on a programme to provide rail infrastructure capacity to unlock the Waterberg and Mpumalanga coal reserves for Eskom power stations, domestic industrial users and export markets, as well as pursuing various other mineral developments in Limpopo for domestic and export purposes.

Transnet has indicated that these products require capacity slots, on shared rail infrastructure; additional capacity has to be developed holistically based on aligned commercial strategies and train operating principles.

Demand drivers include the growth in demand for seaborne thermal coal and other minerals to China and India that will sustain the major expansion in global trade, as well as the Eskom rail migration programme that will introduce incremental capacity to 24-million tons a year.

Key Contracts and Suppliers
Coal export channel expansion to 81-million tons (in-house resource strategy).
Overvaal tunnel doubling – call for feasibility tenders in 2014/15.
Coal export channel expansion to 97.5-million tons – call for prefeasibility tenders in 2014/15.

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.