transnet freight rail corridor development programme and road to rail strategy
TRANSCRIPT
Heading heading heading
DateTransnet Freight Rail Ms Nisha Jones General Manager Commercial
4 February 2016
PAGE
CONTENTS
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• TFR Rail market share• Integrated Rail System• Development & Rail migration• Bimodal Video• Transnet Infrastructure Investments• Infrastructure development for Economic Growth• Terminals, HUBS and CUF• Road to Rail journey progress• Express Train• Value Chain co-ordination• Volume Growth since MDS implementation• Rail addressable market share• Collaborate to to leverage best of Transport System
Advantages• Benefits of Road+ Rail• Corridor Developments
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Rail market share growth is a fundamental driver of the MDS
2
Job Creation
Reducing the Cost of Logistics
Catalyst for Economic Growth
Road-Rail Freight Industry Imbalance
Meet Freight Demand & Improve Service Delivery
Regional Integration
Market Demand Strategy
2
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Integrated Rail System requires effective Interfaces to offer Logistics Solutions
3
Locomotives
Network Infrastructure
Wagons
Crew & Operations
Yards – Crew / Loco Changes; Trains
National Command & Control
Customer Sidings and Loading Equipment
Common User Facilities
Container Terminals
Ports & Back of Port Facilities
Freight Nodes & Logistics Parks
Collaboration – Road Hauliers and Logistics
Service Providers
Technology & Systems
Investment in Technology – Bimodal
& Swop Bodies
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Creating the fundamentals for Logistics Development and Rail Migration
Rolling StockLocomotives:
− New dual voltage locos to reduce throughput time and improve service reliability
Wagons:
− Develop common wagon chassis to reduce shunting, enable faster wagon turnaround, improved asset utilisation, increased density and lower unit costs
− Investigate feasibility of swop body / containers
Infrastructure maintenance & development− “A” standard network upgrade and modernisation− Weighbridges
Development of Terminals, CUFs and Distribution hubs – Location and Upgrading
Technology & Systems− Bi-modal Road–Rail technologies –piloting on NatCor and CapeCor -
suitable to service intermodal, agricultural and FMCG flows− Specialised haulage power, handling technologies to work in various terrains
and terminals, specialised loading and lifting equipment or trailing vehicles
Customer Siding Development, Maintenance and Management including Loading & Offloading Equipment
Logistics alliances and Logistics skills development North-South corridor development, operations model, business
model and pricing Real estate development – logistics & warehousing facilities Systems development – Track and Trace; Web interface
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The majority of Transnet investments will be in General Freight within Freight Rail
Commodity split (Rbn)
Divisional split (Rbn)
Major programmes
GFB rail capacity growth to meet market demand volumes from 88.0 mt in 2013/14 to ~200mt in 2021/22
Completion of the New Multi-Product Pipeline (NMPP)
Increase export coal to 97.5mt –including Waterberg
Increase exportiron ore to 71.0mt
Increase exportmanganese to 16mt
Increase in fleet and improvementto the infrastructure
24
25
32
151
30
3
26
9
Containers (Ports)
Export Iron Ore
Export Coal
GFB
Bulk
Piped Products
Break Bulk
Other
4 11
33
47
4
201Other
TPL
TPT
TNPA
TE
TFR
Other
5
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A catalyst for infrastructure development and economic growth
6
Sishen
Saldanha
Cape Town
East London
Port Elizabeth
Hotazel
Musina
Kimberley
Polokwane
De Aar
Ngqura
Ermelo
Lephalale
Durban
Richards Bay
Johannesburg
SADC
Containers and Intermodal
Iron Ore
Manganese
Coal
Agriculture/ Timber
Rock-phosphate/ Magnetite
Chrome and Ferrochrome
Phalaborwa
Maputo
Coal Exports :81mtpa Rolling Stock Fleet
Standardisation : EWDP Locomotives & Jumbo wagons
Power Upgrades
Capacity Increase : Iron Ore Exports New loops and in–port rail track Power upgrades Tippler & Port handling
infrastructure Increase berth capacity Additional rolling stock
Manganese Exports : 5.5 - 16mtpa New export facility in Port of
Ngqura Heavy haul rail operating
principles Doubling of sections, provision of
new loops and extension of passing loops to accommodate 200 wagon trains
General Freight system modernisation & expansion Locomotives Wagons Network
Infrastructure
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New locomotives being deployed across the network to improve reliability and predictability and reduce transit time
Witbank
Richards Bay
Vryheid
Ermelo
Pyramidsouth
Johannesburg
45D CNR
23E BOMBADIER
Phalaborwa
Komatipoort
Groenbult
Musina
Polokwane
Thabazimbi
Lephalale
KaapmuidenNelspruit
Ladysmith
Glencoe
Durban
Kroonstad
Bloemfontein
Kimberley
Sishen
Hotazel
Saldanha
CapetownPort Elizabeth
East London
Springfontein
Noupoort
De Aar
Beaufort West
Standerton
Swazi Link
Mafikeng
Port Shepstone
22E CSR
Newcastle
21E CSR
Roossenekal
Lydenburg
Ogies
Coligny
44D GE
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43D GE
Assembly in Durban: 23E Bombadier
45D CNR
Assembly in Pretoria: 22E CSR44D GE
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BelconCape Town
Port Elizabeth
Ngqura
Cato Ridge/Umlaas Rd
Harrismith
Mahikeng Pyramid
Sentrarand
Tambo SpringsVaal
Phalaborwa
Musina
Polokwane
Airport Dig Out
DCT (New)
Bloemfontein
Waterberg Coalfields
Coalfields
Koppies
Kascon/City Deep
Richards Bay
Maputo
Saldanha
Sishen
Hotazel
Lohatla
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Terminals, CUFs and Hubs to improve integration and service to customers
Recent Hub / Terminal Development
Bloemfontein – Containerised Manganese Pendoring Multi-User Facility – Chrome &
Ferrochrome Lohatla – Manganese Newcastle – Coal & Ferrochrome Newcastle - CAB Multi-User, Multi-Product
Facility Maluti-a-Phofung (MAP) IDZ / SEZ
development connectivity
Super terminal
Intermodal terminal
Freight nodes
Mineral nodes
General freight terminal
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Road to Rail Strategy – Journey Progress
9
Market retention Scheduled railway Commodity focus
2012 2014 2016 2018 2020
Str
ate
gy
Syste
ms
Pri
cin
g
Investment `Marketing People
Market Share 2012
Rail Tons % of Total Surface
11.7%
Rail Addressable ~27%
Market growth
Hubs & Intermodalism
Market attraction
Integrated logistics service provision / Supply chains
Locomotives Commodity specific
wagons
Network upgrade to ‘A’ Standard
Bimodal technology
Hubs & Terminals
B2B systems & web-based interface
Customer relationship management
Key Account management
Collaboration Customer
experience PSPs &
Alliances
Marketing new services
Management/ Leadership
Operations & Technical railway skills
Culture building
Business Transformation
Strategy refinement
Market analysis & opportunities – 18mt
Heavy haul & other mining – pit to port
Agriculture Pit to plant Stockpile to stockpile
Plant to plant
Plant to DC
Domestic IntermodalDC to DC
SAP IATS
Lead to Cash
Web based B2B Interaction
Annual negotiations
Volume guarantees
Take / Pay
Competitive pricing linked to investment
Value-based integrated pricing structures
Logistics skills
Commodity Strategies
Market Share 2024
Rail Tons % of Total Surface
15.7%
Rail Addressable >46%
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Volume Growth following MDS implementation in 2012 - 2015
12
+11,7%
2014
88,0
2013
83,0
2012
81,0
2015
90,5
General Freight
Significant rail volume growth despite low economic growth
201,0
2015
226,7
+12,8%
2014
210,4
2013
207,7
2012
Total TFR
PAGE 13
94 95 90 87 88 86 84 83 84 78 72 74 81 83 88
21 24 26 28 30 30 32 37 45 46
52 56
6467 65
64 66 67 69 67 63 62 62 62
6869 68
0
20
40
60
80
100
120
140
160
180
200
220
20
25
30
35
40
45
50
55
60
65
70
179
2009
177
2008
179
2007
180
2006
182
2005
181
208
181
27
2003
176
25
2002
181
2001
185
2000 2014
210
54
201320122004
201
2011
182
2010
179
Export Iron Ore
Export Coal
RAMS Tons
General FreightRAMS TonKm
Rail Addressable Market Share reflects Rail capture since MDS in 2012
Accelerating Implementation
Developing Bi-Modal technology
Building a commercial and
logistics mindset – beyond sale
of rail transport
Value propositions to meet
specific customer
requirements
Building alliances to fast-track
opportunities
Building market reputation
through reliable and efficient
service delivery
Rolling stock and network
modernisation programme
RAMS – Rail Addressable Market Share
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Collaborate to leverage best of Transport System Advantages
14
Transport
System
Primary benefits Secondary benefits
Rail High economies of scale
Environmental friendly (Low carbon
emissions)
Fuel efficient
Cost advantage
Lowering logistics costs
Reduced road infrastructure &
externality costs
Increased safety on roads
Road/ Bi Modal Flexibility
Adaptability
Accessibility
Lower inventory and storage cost
Premium service levels and price
Pros Potential for innovative solutions Understanding new and untapped
markets Understanding and having direct
access to supply chain stakeholders Create common vision for supply
chain success
Cons Sharing of sensitive information First & Last Mile Pricing vs Integrated
solution pricing Anti-competitiveness (Colluding) Conflicting Individual Stakeholder
strategies
Collaboration
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Benefits
Road plus Rail and Intermodal
solutions are imperative in a
growing freight Transport
market
o Innovation
o Collaboration
o Co-operation
o Credibility
o Trust
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PAGE 16
CARBON FOOTPRINT
IN 2016, THE GOVERNMENT WILL IMPLEMENT A CARBON EMISSIONS TAX, PROPOSED
AT R120 PER TONNE OF CO2e (CARBON DIOXIDE EQUIVALENT), WITH THE AMOUNT SET
TO BE INCREASED 10% PER YEAR. RAIL OFFERS ~90% MORE ECO-FRIENDLY SERVICE
WITH SIGNIFICANT CARBON EMISSIONS SAVINGS ACHIEVED.
PAGE
EMISSIONS TAX BENEFIT
EXAMPLE BASED ON 100 TEUS MOVED FROM DURBAN PORT- JOHANNESBURG
TONNES OF CO2 EMISSIONS
EMISSIONS TAX
ROAD 306,42 R36 770,40
RAIL 66,82 R8 018,40
SAVING 239,60 R28 752
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LTPF Corridor Development Approach
• Corridor Dedication: The LTPF strategy aims to develop corridors dedicated commodity types in the long term; thereby maximizing the gain from infrastructure and service optimization
• Operating Philosophy: The LTPF considers the operating philosophy of the entire supply chain, including mainline, loading operations, yards and rolling stock.
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LTPF Corridor Development Approach
• Corridor Dedication: The LTPF strategy aims to develop corridors dedicated commodity types in the long term; thereby maximizing the gain from infrastructure and service optimization
• Operating Philosophy: The LTPF considers the operating philosophy of the entire supply chain, including mainline, loading operations, yards and rolling stock.
PAGE
Summary of LTPF Strategy and Initiatives at a Corridor level
Create Long Loops
Remodel Salkor Yard
OTF Changeover
Partial Doubling
Common User Facility
Heavy Haul Line
Botswana Link
Swazi Rail Link
150W Loop Extensions
Cato Ridge Bypass
Compilation YardCoega Port
25kV AC Conversion
150W Loop Extensions
Common User Facility
GAUTENG - DURBAN• Long Term: 150W CAB trains. Cato
Ridge bypass, Skansdam Link • Medium Term: 75W CAB trains.
Double the remainder of the Gauteng Freight ring and improve connectivity and routing
• Short Term: Reduce headways to 20min
GAUTENG – CAPE TOWN• Long Term: Up to 150 wagon
trains, operated in DP mode. Potential for 25kV AC electrification
• Medium Term: 75 Wagon trains serving Gauteng Intermodal Super terminals. Further doubling
• Short Term: Operational improvements. Partial doubling Kimberley – De Aar
NORTH EASTERN SYSTEM
• Long Term: GFB bulk export corridor modelled on heavy-haul principles
• Medium Term: Swaziland Rail Link alternative route to Richards Bay terminal. 150W bulk trains
• Short term: Efficiency improvements. Common user facilities, standard 75W bulk trains
COAL SYSTEM• Long Term: 200W Heavy Haul from
Waterberg to Richards Bay, single pit-port train configuration
• Medium Term: Expand backbone capacity -2nd and 3rd 26t/a lines
• Short term: Efficiency improvements. Project Shongololo increases operational efficiency by bypassing Ermelo balloon. Expand existing Lephalale line capacity 200W DP trains
ORE LINE• Long Term: Double line
operation• Medium Term: Interim GFB
crossing loops• Short Term: Optimise slot
capacity through long-loop philosophy
MANGANESE LINE• Long Term: 26t/a Axle Load Upgrade• Medium Term: 200W Heavy Haul Pit-
Port Operation • Short Term: Bridging Capacity
Solutions via Swartkops, Durban Wests, Saldanha MPT
Skansdam Bypass Link
40km Doubling
15 min signal spacing
200W Loop Extensions
Loop Extensions
200W Crossing Loops
Multi User Facility
Rail in Port remodeling
Short Term: < 7 yearsMedium Term: 7 – 15 yearsLong Term: > 15 years
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Iron Ore and Manganese systems
Sishe
n
De Aar
Noupoort
Kimberley
Hotazel
NgquraPort Elizabeth
Mossel Bay
Saldanh
a
PortIron Ore System
Manganese
System
Multi-User facility for train compilation
and to service junior miner entrants
Multi-User facility for train compilation
and to service junior miner entrantsUpgrade Strategy
• Long Term: Double line operation
• Medium Term: Interim GFB crossing loops
• Short Term: Optimise slot capacity through long-loop philosophy Phased Doubling
(> 17Mtpa Total section
demand)
10 Loop Extensions (> 9 Mtpa)
1 New Crossing Loop (>9 Mtpa)
10 Loop Extensions (> 9 Mtpa)
Iron Ore Exports
Manganese Exports
On-The-Fly voltage
changeover
Salkor North Extension
Salkor Yard Remodeling
200W compilation yard
Electrification to TipplersUpgrade Strategy
• Long Term: 26t/a Axle Load Upgrade
• Medium Term: 200W Heavy Haul Pit-Port Operation facilitated by dual-voltage locomotives
• Short Term: Bridging Capacity Solutions via Swartkops, Durban Wests, Saldanha MPT
-
10
20
30
40
-
20
40
60
80
100
120
2 New Loops (> 9 Mtpa)
GFB Crossing Loops (> 62 Mtpa)
8 Loop Extensions (>16 Mtpa)
1 New Crossing Loop
*(…Mtpa ) Manganse Exp Volume
*(…Mtpa ) Iron Ore Exp Volume
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Coal and GFB Minerals
Richards Bay
Port
Coal System
North Eastern
System
26t/a Heavy Haul line (>24 Mtpa)
Corridor Dedication Strategy• Dedication of corridors allows for
greater optimization and exploitation of network infrastructure, and standardization of train configuration
• Coal: Waterberg – Mpumalanga –Vryheid – Richards Bay
• GFB Mineral: Rustenburg –Mpumalanga – Phuzumoya –Richards Bay
Upgrade Strategy• Long Term: GFB bulk export corridor
modelled on heavy-haul principles• Medium Term: Swaziland Rail Link to
unlock alternative route to Richards Bay terminal
• Short term: Efficiency improvements, creation of common user facilities, standard 75W trains
Cross-border link to Botswana
coal fields
Coal System
AC Electrification
Common User facility
150 Wagon crossing loops (> 20 Mtpa Magnetite)
150W Loops (> 12 Mtpa GFB Bulk)
Re-alignment
New Davel yard facility
Lengthen 6 loops (>11 Mtpa)
2nd and 3rd 26t/a lines Lothair – Sidvokodvo Greenfields Line
(> 12 Mtpa GFB Bulk)
Upgrade Strategy• Long Term: 200W Heavy Haul operation
from Waterberg to Richards Bay, operating on a single pit-port train configuration
• Medium Term: Expand existing Lephalale line capacity as interim phase using 200W DP trains. After operations migrate to heavy haul line capacity will be available for GFB bulk expansion. Expand backbone capacity by addition of 2nd and 3rd 26t/a lines
• Short term: Efficiency improvements, distributed power and dual-voltage technology to enable 200W trains North of Ermelo. Project Shongololo increases operational efficiency by bypassing Ermelo balloon.
Pyramid
Golela
Ermelo
Lothair
Vryheid
Hoedspruit
KomatipoortRustenburg
Phalaborwa
LephalaleGroenbult
Musina
-
20
40
60
80
-
25
50
75
100
125
150
175
Waterberg System
Export Line
Lengthen 3 loops (>16 Mtpa)
Overvaal tunnel (>90 Mtpa)
SRL
Heavy Haul Line
*(…Mtpa )Coal Exp Volume
North Eastern System
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Durban-Gauteng System
Cape Town-Gauteng System
Port
General freightDurban-Gauteng and Cape corridors
Durban
East London
Ngqura
Port ElizabethMossel Bay
Cape
Town
Saldanh
a
Port Shepston
Richards
Bay
Upgrade Strategy• Long Term: 150W CAB trains,
enabled by DP, servicing Gauteng Intermodal Super terminals, Port of Durban and DDOP . Cato Ridge bypass to separate freight and commuter services.
• Medium Term: 75W CAB trains, extend Durban Pier 1 and 2 terminals. Double the remainder of the Gauteng Freight ring and improve connectivity and routing
• Short Term: Reduce headways to 20min through operational improvements.
Gauteng – Durban System
Double 40km (> 40 Mtpa)
Skansdam Bypass
Double Rooikop - Mapleton
Cato Ridge Bypass (> 28 Mtpa)
Bayhead yard
remodeling for 75/150W
trains
Conversio
n to 25kV
AC
Phased doubling
Lengthen crossing loops for
75W (>3 Mtpa)
Regrade, Realign, Lengthen
Loops for 150W (>6 Mtpa)
Adjust signal spacing
to 15 min (> 55 Mtpa)
Upgrade Strategy• Long Term: Up to 150 wagon
trains, operated in DP mode. Potential for 25kV AC electrification
• Medium Term: 75 Wagon trains serving Gauteng Intermodal Super terminals. Further doubling
• Short Term: Operational improvements. Partial doubling Kimberley – De Aar
King’s rest
container
terminal
Gauteng – Cape System
Pyrami
d
Kimberle
y
Newcastle
Ladysmith
Houtheuwe
l
Bloemfontein
Noupoort
De Aar
-
20
40
60
80 To Coast To Hinterland
Large Scale Intervention: New Line
-
20
40
60
To Cape To Gauteng
75W Trains
(> 37 Mtpa)
150W Trains
(> 45 Mtpa)
*(…Mtpa )Total volume for all commodities, both directions of travel
PAGE
Remodel Salkor Yard
OTF Changeover
Common User Facility
Overvaal
Tunnel
Double Bleskop - Norite
Compilation Yard
Common User Facility
Multi User Facility
Rail in Port remodeling
Key Initiatives which have an indirect effect on system capacityThere are a number of interventions within the development framework which are not directly linked to capacity but
remain key to the successful increase of capacity and improvement in system efficiency
• Operational Improvement
• Sustainability
• Enabler for Change in Operating Philosophy
• Logistics Chain Improvement
Intermodal Terminal Yards
OTF Changeover
Common User Facility
Grade Separation
Grade Separation
Rietvallei Chord
Regrading for 150W Trains
Realignment for 150W Trains
DC to AC conversion
150W Consolidation Yard
150W Consolidation Yard
Power Supply Upgrade
DC to AC Conversion
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MDS Driving Volumes Back to RailNATCOR/N3 Corridor
Forecast growth in freight on this corridor from 45 Billion Ton-Km(2014) to 113 Billion Ton-Km (2045).
Rail intermodal traffic has increased substantially :
From 4 trains per day in 2011 to 24 trains per day in 2015, Average transit time reduced from 30 hours to 22 hours
Road continues to carry the majority of freight (approximately 78% in Ton Kilometres) on the N3/Natcor corridor.
Transnet is targeting a shift in rail modal share on the N3/Natcor from the current 22% to 39% over the next 30 years. This shift will represent approximately 60% of all rail addressable volumes (RAM) on the corridor.
PAGE
Road and Rail: The huge challenge
Source: 10 th Annual State of Logistics Survey for South Africa: 2013
PAGE
Corridor Capacity Development TranchesCapacity tranches and corresponding expansion projects have been identified. The capacity tranches relate to the dominant
commodity on the relevant network, however it should be noted that they may be influenced by changes in commodity mix
System Tranche Work Packages
Iron Ore
62 – 71 Mtpa Iron Ore Incremental Expansion, Long Loops
71 – 82 Mtpa Iron Ore Intermediate GFB Crossing Loops
> 82 Mtpa Iron Ore Doubling
Manganese Exports
7 – 9 Mtpa Manganese Exp Phase 1: Lengthen Rosmead Loop, 97km doubling
9 - 16 Mtpa Manganese Exp Phase 2: 2 New Loops, Lengthen 10 Loops, 200W Coega Compilation Yard, 200W trains
> 16 Mtpa Manganese Exp 26t Axle Load Upgrade, Lengthen 8 Crossing Loops, Further doubling
Coal – Waterberg
5 – 11 Mtpa Coal Lengthen 1 Crossing Loop, Double Bleskop - Norite
11 – 16 Mtpa Coal Exp Lengthen 6 Loops (Stage 3)
16 – 24 Mtpa Coal Exp Lengthen 3 Loops (Stage 4)
> 24 Mtpa Coal Exp Construct Greenfields Heavy Haul Line
Coal - Backbone + Export
80 – 90 Mtpa Operational Efficiency Improvements (Project Shongololo, Ermelo yard bypass)
90 – 100 Mtpa Double Overvaal Tunnel, Upgrade signaling, Upgrade OHTE
100 – 120 Mtpa 2nd and 3rd 26t/a lines, 25kV AC Conversion, Divert GFB traffic, Upgrade signaling, to 20 min headways
PAGE
Corridor Capacity Development Tranches (continued)Capacity tranches and corresponding expansion projects have been identified. The capacity tranches relate to the dominant
commodity on the relevant network, however it should be noted that they may be influenced by changes in commodity mix
System Tranche Work Packages
Gauteng – Durban
25 – 37 Mtpa Total Vol. (North)
Increase Operational Efficiency (20 min headways)
37 – 45 Mtpa Total Vol. (North)
Accommodate 75W Trains (Lengthen stations, power supply upgrades), Cato Ridge
45 – 55 Mtpa Total Vol. (North)
Accommodate 150W trains (25kV AC conversion, power supply upgrades, yard re-configuration)
55 – 67 Mtpa Total Vol. (North)
Reduce Headways: Block Splits
20 – 28 Mtpa Total Vol (South)
Cato Ridge Bypass
Gauteng – Cape Town
12 – 20 Mtpa Total Vol. (North)
Lengthen Crossing Loops for 75W
20 – 38 Mtpa Total Vol. (North)
150 Wagon Trains (Regrade, Realign, Loop Extensions), Doubling
North Eastern System
12 – 30 Mtpa GFB Bulk ExpSwaziland Rail Link (Greenfields Construction , Brownfields Upgrade), Regrading, realignment for 150W on Swaziland Mainline, Lengthening of Loops
20 – 30 Mtpa Magnetite Exp150W Trains from Phalaborwa (Lengthen 2 Loops, Extend Lines in consolidation yards).
40 – 55 – 65 Mtpa Incremental Doubling of Single Line Sections (Eastern Mainline)