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

Client
Transnet Freight Rail (TFR).

Project Description
TFR is in the process of 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 to the market 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 110 new dual-voltage (19E) locomotives operate with a dual-voltage ac/dc control system, allowing continuous operations in the 3 kV dc section north of Ermelo and in the 25 kV ac section south of Ermelo and onwards to Richards Bay. Currently, the locomotives are switched midstream at Ermelo to cater for the change in electrical systems. The new locomotives are about 10% more efficient than the existing fleet and include the ability to regenerate electricity during braking. The locomotives are provided with wire-distributed power technology, which will allow TFR to operate 300-wagon trains in the future. In addition, the new fleet is expected to achieve availability of more than 90% and reliability of less than 15 faults per million kilometres.

The infrastructure construction programme for the expansion to 81-million tons a year has started. Major work packages include various sustaining investments and the upgrade of four yards at Blackhill, Saaiwater, Ermelo and Vryheid, nine substations and two locomotive workshops upgrades, with a new locomotive turntable.

The work packages will be executed through 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 documents for the feasibility studies are expected to go to market before the end of this financial year.

Value
Together with sustaining capital, the capital investment to increase capacity to 81-million tons a year is estimated to be R31.6-billion over the next ten years.

Duration
The 81-million-ton-a-year coal line is expected to be completed in 2014/15 and the expansion to 97.5-million tons a year will span a period of ten years, with various capacity tranches being delivered during this period.

Latest developments
During the 2011/12 financial year, TFR moved 67.7-million tons of coal, an 8.8% increase on the 62.2-million tons achieved in the previous financial year.

Barring operational problems or coal short-ages, the company reported that it had the infrastructure and rolling stock in place to meet the 2012/13 budget. Plans are also advancing to ramp up the initial 81-million-ton-a-year capacity ‘sustainably’ by 2014.

The last of the 110 Class 19E locomotives procured from a Mitsui-led consortium were expected to be operational by the end of 2012, while an additional 860 jumbo wagons will be added to the existing fleet of 7 800 by March 31.

In addition, TFR plans to increase its yearly domestic coal volumes by 305% between 2012 and 2019 from nearly eight-million tons to about 30-million tons.

The Transnet National Ports Authority is also considering plans to facilitate the further expansion of coal exports through Richards Bay to about 98-million tons by 2019, as part of its R300-billion seven-year market-demand strategy.

Initiatives to unlock domestic and export coal resources from the Waterberg region are central to this expansion. TFR is planning a phased introduction, with the first phase likely to facilitate the movement of 23-million tons. Thereafter, a new heavy-haul line linking the Waterberg to Broodsnyersplaas is required.
TFR CEO Siyabonga Gama has said that Transnet is in talks with several key producers to sign long-term contracts for the newline, which is expected to be built by 2019. The company is considering contracts of an average duration of ten years. The deals are expected to be in place by June this year. The immediate priority, though, is to reduce congestion at the key Ermelo rail junction by diverting general freight through a Swaziland link.

Key Contracts and Suppliers
Mars (electric trains), Transnet Engineering (maintenance services), TCP (Transnet Capital Projects) (engineering, procurement and construction management of infrastruc-ture projects), Union Carriage & Wagon Partnership (UCWP) (mechanical, fabrication and assembly aspects of the contract), Booyco Engineering (contracted by UCWP to manufacture ac systems for the 110 Transnet 19E locomotives).

On Budget and on Time?
Not stated.

Contact Details for Project Information
TFR programme manager Andries van Ross, tel +27 11 583 0456 or cell +27 83 389 4156.