RAILROADAssociation of South

Africa

CONTENT1. Introduction2. Railroad Capacity-SSA3. Rail Utilization drivers4. The Corridor operating plan5. The Reality Check & 6. The imagined final state

Rail must be Competitive and provide Economic & Social Returns

RAILROADAssociation of South

Africa

IntroductionThe RRA was founded in October 2000

representing Rail Private Service and Productsuppliers ; Operators & Govt. entities

VisionMovement of freight & Passengers

from Road to Rail &Create a sustainable Rail Industry

Enhanced vision and strategy made in 2014-Towards SSA

One Theme: but the difference Lies in the Details

Railroad Capacity in SSA

COST , SAFETY & SPEED of Corridor

Corridors SSA and Region

North- South & East-West

Existing Rail Infrastructure

Zimbabwe is Central

NEPAD Study 2006

Railway Potential is Great..BUT

DRC 24.4 3 256 17 250 2 250 0.50 14.1 465 2 084Botswana 20.7 888 10 217 5 620 1.85 18.8 647 1 378Mozambique 17.4 2 593 30 400 5 685 4.00 13.4 500 1 351Zimbabwe 14.3 2 583 18 338 8 692 5.30 9.0 2 400 444Namibia 12.8 2 382 64 808 5 378 2.07 10.8 1 262 1 119Swaziland 7.5 301 3 800 1 064 3.90 3.6 710 8Malawi 6.3 789 14 597 2 773 0.40 5.9 75 88Lesotho 4.3 3 4 955 887 0.00 4.3 0 16

China has similar challenges with 80 % of freight on road.

Rail Utilization Drivers

Infrastructure,Motive Power, Crews and Operating Strategies

RAILROADAssociation of South

Africa

Infrastructure challenges1. State of Disrepair

a.Too many national standardsb.Lack of finance co-operation modelc.Skill sets are few and scattered

2. Gauge and other Barriersa. Corridor -cape gauge

b.New mine to Port Standard gaugec. lack of facility, equipment,

standardization e.g loading units

RAILROADAssociation of South

Africa

Motive Power challenges1. State of Disrepair

a.Too many in disrepairb.Lack of finance co-operation modelc.Skill sets are few and scatteredd. fuel efficiency

2. Tools and Axle Loadsa. Gauge unable to take heavy locos

b. New Locos >20 tons for new linesc. Upgrade or design light loco

RAILROADAssociation of South

Africa

3.Infrastructure Barriers

a. Suitability of interchange terminalsb. Rail gaugesc. Capacity of Terminalsd. Limited access roads to terminalse. Standardized layout of facilitiesf. Non standard rail track equipment

4. Operational, Logistical & service relateda. lack of transparency in supply chain.b. limited flexibility for short term orders (Rail)c. Rail priority on mixed lines given to pax.d. lack of intermodal integration ( Inventory)

RAILROADAssociation of South

Africa

5.Financial & Economic Barriersa.Expensive intermodal equipmentb. Cost of terminalsc.High pre and end haulage costd. Cost effective warehousing

6.Political Barriersa. Harmonized cross border conditionsb. National pricingc. Processing procedures

RAILROADAssociation of South

Africa

The Corridor Operating Plan

a. National must be Corridorb. Common standard trainingc. Single skilled – must be multi Skilledd. fuel efficiency

Operatinga. Seamless corridor

b. Shared Control centersc. Similar Control Systemsc. Highest Standard For Safety

RAILROADAssociation of South

Africa

Actions to Best Solutions1. Identify past, present and future constraints.2. Investigate the market needs to design

capacity requirements.3.Locate best locations for Intermodalterminals4.Rationalise layout and design based on

Common requirements and standards.5.Improve road access to inland and sea Point.6. Re-visit priority rules for Rail.

RAILROADAssociation of South

Africa

7. Benchmark Global practises.8.Revisit Infrastructure gauge , equipment & services9.Optimise efficiency of existing infrastructure.

10. Incentives to be provided for intermodal shift toMost suitable mode.

11.Improve data collection and easy of doing business12. Implement regional policies based on corridors13.Avoid duplication and contradicting projects.14.Complete the North-South & East- West

missing links.

Reduce the Cost of Logistics

RAILROADAssociation of South

Africa

KEY EXTERNALITIES1.Infrastructure Costs- both capital and maintenace2.Enviromental impact-CO23.Congestion costs4.Safety and Security

Best Energy Usage = Rail.

COMPETITIVENESS

COST , SAFETY & SPEED of Corridor

The Corridor Operating Plan

Assets National Owned, Shared Services and Motive Power. Tailored Rails

Rail Utilization Drivers

Infrastructure,Motive Power, Crews and Operating Strategies

Rail does best for Bulk and Long Distance

Continuously Reduce the Cost of Logistics- 2016?

The Reality Check

Assets National Owned, Shared Services and Motive Power. Tailored Railnetworks

The solutions ,products and service available in Rail in the Regionaddress:

1. Freight

2. Metro

3. Heavy Haul

4. Light rail

5. People Movers

6. High Speed Passenger

04/09/15

Infrastructure

04/09/15

Rolling Stock

04/09/15

Services

RAILROADAssociation of South

Africa

Leverage Regional Strengths Sweat the Assets

Learn from the Best&

InnovateThank You