TRANSNET FREIGHT RAIL Enabling intra-region trade growth in SADC Kantanga Mining Briefing - Lubumbashi
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1 TRANSNET FREIGHT RAIL Enabling intra-region trade growth in SADC Kantanga Mining Briefing - Lubumbashi Transnet Freight Rail is a division of Transnet SOC Ltd Reg no.: 1990/000900/30 An Authorised Financial Services Provider FSP 18828
2 Overview Transnet Freight Rail Overview & Market Demand Strategy Enabling Southern African Inter Regional Growth Corridor Overview Growth Potential Over- border Strategic Objectives
3 Freight Rail Overview Freight Rail transports 14% of the nations freight tonnage annually or 35% of ton kilometers Owns and maintains a network of ~ route km - ( track km) connected to ports and the rail networks of neighbouring countries Operates ~ trains per day Serves ~450 key accounts Conveys 98 commodity groups over more than origin destination combinations Transports 4.5 per week Moved 201 million tons in the 2011/12 financial year 3
4 Volume Growth Closing the gap between Road and Rail ,2 201,0 268,1 224,8 GF Coal 278,8 237,9 Eskom GF Magnetite 328,5 321,8 309,4 283,5 261,8 305,7 Eskom Waterberg Waterberg GF Exports Containers Manganese TCM Coal 334,4 350,2 334,0 Market Demand Freight Rail Volumes Infra Capex Loco Capex Wagon Capex / / / / / / / /19 Investment in Rolling Stock and Rail Network Infrastructure and implementation of strategic expansion projects to achieve 74% growth in tonnages over 7 years
5 Strategy Drivers Investment in Rail Infrastructure Skills Development Policy / Institutional Frameworks Rail Revival A paradigm shift in the functioning of SADC railways for one unified railway system Development agency involvement Financing infra and equipment Efficient utilisation of rail resources Incentivise Private public participation Economic growth Port Rail access and cooperation
6 Unlock potential within Southern Africa by enabling intraregion trade growth There is significant Africa intra-trade potential Africa s intra-regional trade compared to major continents % Africa America Europe and South Africa has embraced the challenge 87 Asia Regional and continental infrastructure development is of fundamental importance to the realization of Africa's economic growth and development imperatives. [ ] As regional leaders, we carry a particular responsibility to serve as champions in driving industrial and infrastructure development both at the regional and continental levels. President Jacob Zuma Announcing the launch of free trade negotiations June 13, 2011 Transnet s Africa strategy initiatives in progress Rail Export of wagons and locomotives Export of rail maintenance services Expansion of cross border volumes Swaziland rail link planning and construction Ports Promoting SA as a regional transhipment hub for Southern Africa Pursuing regional Port Planning (hub versus feeder ports) through PMAESA 1 Promoting the development of the short sea shipping industry in the region Exploring opportunities to participate in Port Management Contracts Pipelines Providing advisory services given our technical competency Group Supporting Government s role in the development of the North-South corridor 1 Port Management Association of Eastern and Southern Africa
7 Future Potential for transport from RSA to SADC countries RSA - OVERBORDER: UNCONSTRAINED DEMAND BY COUNTRY 25,000,000 TONS 20,000,000 15,000,000 10,000,000 5,000,000 ZIMBABWE SWAZILAND NAMIBIA ZAMBIA DEMOCRATIC REPUBLIC OF CONGO BEITBRIDGE BULAWAYO RAILWAY BOTSWANA MOZAMBIQUE FINANCIAL YEARS Mozambique and Botswana receive the lion s share of imports from South Africa Transport from RSA to Mozambique is mainly export commodities through Maputo harbour specifically coal, magnetite and potential iron-ore exports as well from 2014
8 Mala wi Overview of Corridors Angola North West Corridor North South Corridor Namibia Democratic Republic of Congo Zambia Botswana South Africa Zimbabwe United Republic of Tanzania Mozambique Maputo Corridor Inter-Railway Agreements Operational & Bilateral agreements aim to promote inter-operability between SADC railways and typically define operational, safety and technical standards between corresponding countries Corridor Development Corridors are a broader concept defined by flows of goods across railway and country boundaries in a seamless manner and require cooperation between multi-role players Transnet Fright Rail will focus on the development of three corridors: East-West Corridor Namibia, Botswana, Lesotho Maputo Corridor Swaziland, CFM, MPDC, TCM North South Corridor Zambia, DRC, Zimbabwe
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