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 internal resources 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 is estimated at R45.5-billion over the next seven-year period of Transnet’s Market Demand Strategy.
Duration
Not stated.
Latest developments
Transnet aims to rail 76-million tons of export coal in 2015, however, much will depend on coal availability from coal mining companies.
As much as coal is generally available from some major companies, juniors sometimes presented challenges, as they have not always met their Quattro allocations.
Also, the biggest challenge regarding the expansion of the coal line to 81-million tons, is obtaining additional power on the line from State-owned electricity utility Eskom.
A coal industry forum has been established so that all parties interested in exporting can be accommodated to provide convergence in project commissioning and to ensure that Transnet has an informed view.
Key Contracts and Suppliers
Coal export channel expansion to 81-million tons (internal 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.