ESKOM Primary Energy Division

ESKOM Primary Energy Division

2nd Annual Coal Transportation Africa Summit

Indaba Hotel

20 May 2015

Reflection on recent Eskom-related direct and indirect incidents

FCA fatality free days = 23 ; DEL fatality free days = 9

• Fatality of a coal truck driver – 14 January 2015 (application of the truck lock out procedure)

• Fatality of coal quality sampler – 9 February 2015 (speeding, no safety belt, obstruction on road)

• Fatality of member of public - 26 April 2015 (speeding, alcohol)

• Fatality of private truck driver - 10 May 2015 (speeding, overtaking, road conditions)

• Fatality of member of public – 16 May 2015 (making unlawful U-Turn, driving in the mist)

• Serious Injury of member of public – 18 May (driving in mist, failing to stop at stop street, fatigue)

• Serious Injury of member of public – 18 May 2015 (speeding, failing to stop at stop sign)

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3

Eskom Coal Logistics Overview

Annually Eskom takes delivery of over 120 million tons of coal.

Conveyor 60%

Rail 10%

Road 30%

2015/05/20

4

Integrated Logistics Strategy (ILS)

• Eskom contracting strategy

• 1st Option Conveyor

• 2nd Option Rail

• 3rd Option Road

• Road to Rail Strategy

• Reduce number trucks on the road

• Always will have an element of road. Gives flexibility to supply

chain.

2015/05/20

Road-to-rail migration is a National strategic imperative for several reasons

Reasons for change

• Minimise fatalities as a result of road coal transportation

• Reduce damage and congestion on limited road infrastructure

• Reduce negative impact to coal haul town and communities

It is estimated that road externalities are costing the South

African economy R34 billion per year

Social

Economic

Environmental

• Reduce cost of coal transportation (enable optimisation of electricity

tariffs)

• Boost South African economy (through massive rail infrastructure

development)

• Stimulate overall job creation (through massive rail infrastructure

development)

• Reduce carbon emissions and overall carbon footprint

• Eradicate spillages and illegal dumping

Source:Remarks by Mr. Malusi Gigaba MP, Minister of Public Enterprises, Oct 2012

Overview of Eskom Road Transportation

1. Eskom transport coal by road in Mpumalanga Province over a road network of

about 3200 KM.

2. The coal is transported by a fleet of over 2000 trucks.

3. Average distance of about 600 000 Km/day – about 16 times around the globe

4. 124Kt of coal is moved on road per day on about 30-40 routes

5. Type of Road contracts

• FCA – Free Carrier - Transporters contracted directly with Eskom

• 58 Transport Contracts

• Delivered – Transporters contracted with mines

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Overall Challenges and Gaps

• Safety

• Performance and Productivity

• Systems and Processes

• Shared-Value in the Value Chain

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Road Safety Initiatives

• Revised weekend operating hours

• Implemented 13 October 2013

• Stop loading operations on Friday evening at 18:00

• Resume loading operations on Sunday mornings at 06:00

• Past three years Eskom stopped road operations consistently during the periods of

Easter , Christmas and New Year

• Road operations stop on affected routes in misty conditions

• No overtaking

• No tailgating

• Involvement in the repair of coal haul roads

• Industry work groups on Road Safety and Road Conditions

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Public Awareness Campaigns

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Our reality…

1. The single biggest challenge of road coal transport is the increased operator and

public safety risk.

2. Due to the fact that coal road transport shares the road infrastructure with the general

population, coal road transport has a higher risk of accidents than other forms of

transport. This risk increases exponentially as the vehicle numbers increases.

3. Furthermore, there is a direct correlation between road conditions and operating

vehicle operating costs. There is a backlog of road maintenance on National and

Provincial roads, partly contributed by budget but exasperated by increased heavy

haul road transportation and overloading.

4. Varying degree of performance levels of many transporters and mines

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(FCA) PUBLIC FATALITIES (2010/11 -2015/16)

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A M J J A S O N D J F M

2010/11 0 2 2 2 2 2 4 7 9 10 11 13

2011/12 0 1 4 4 4 4 6 10 10 12 13 15

2012/13 0 1 8 8 8 8 11 18 18 20 21 25

2013/14 1 1 4 7 7 7 9 12 15 16 17 19

2014/15 0 0 0 0 0 0 3 3 6 6 6 6

2015/16 1

0

5

10

15

20

25

30Public Fatalities

(FCA) PUBLIC INJURIES ( 2012/12 – 2015/16)

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2011/12 10 10 12 15 17 19 24 24 26 30 31 35

2012/13 1 7 11 17 18 20 26 30 32 33 36 42

2013/14 0 1 7 16 18 18 19 23 29 30 31 35

2014/15 3 3 4 28 31 35 43 47 50 51 53 53

2015/16 1

0

10

20

30

40

50

60Public Injuries

(FCA) CONTACTOR LOST TIME ( 2012/13 – 2015/16)

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2012/13 2 2 2 2 2 2 2 3 3 4 4 5

2013/14 1 2 2 2 2 2 2 2 2 2 2 2

2014/15 0 0 0 0 1 1 1 1 1 1 1 1

2015/16 0 1

0

1

2

3

4

5

6Contractor Lost Time Incidents

FCA Speeding Violations: YoY Comparison

2015/05/20 14

559688

613687

477375

338575

495557

306960

270913

230557

166973 156379

130230

81331

112751 113671 95635 88919

76876

44871 66126

94457 104122 88951 80981

78561 81677 86152

138273

77807

0

100000

200000

300000

400000

500000

600000

700000

January March May July September November

2013

2014

2015

Speed violations have

been decreasing year on

year.

Our area of focus within our control – Management, systems,

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Policy-Level A

Defines approach and

Company Policy with

regards to Quality,

Environment, Health and Safety, etc.

Procedure-Level B

Defines why, (purpose) and who, what activities and

will do when.

Supervisory control .

Work Instruction -Level C

Defines how activities are carried out.

Business control

Supporting

Documentation.

Does the documentation

indicate the

real situation

in practise.

Business Policy Manual (Quality

Manual)

Procedures (addressing business processes)

Including mandatory procedures for:

- implement and control of documents

- control of records

- internal audit

- control of nonconformity

- corrective action

- preventive action

Instructions and execution.

Supervisor/employee intervention

Supporting Documentation (Forms , Lists , Registers ,

Templates, Matrices (M), etc.)

RECORDS

Record Keeping -Level D : Results Indicates effectiveness

of the system

Call for Industry Standardisation and Support

Formal industry body/forum to regulate the industry in order to drive:

1. Driver Standardisation - continuous improvement

• driver database – profiling

• Compulsory defensive driver training

• Incentivisation for safety

• Eradication of fake licenses and undocumented drivers

• Conduct coal haul driver expo

2. Vehicle standardisation – continuous improvement

• Age of vehicles

• Markings

• Install drive cam technology

3. Transport Company Standardisation – continuous improvement

• Profiling

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Continuous Improvement

Self-funding opportunities

Call for Industry Standardisation and Support

4. Shared Value

• optimised use of a vehicles resulting in less trucks needed

• Loading and offloading infrastructure

• Prevention of overloading

• Prevention of under-loading

5. Repairing of coal haul roads

• Routine maintenance

• Preventative maintenance

• Emergency repairs

• Stakeholders to get involved in “adopt” a road campaigns

6. Enforcement of traffic regulation on coal haul roads

• Visibility

• Weighbridge enforcement

7. No driving in the misty conditions

8. No Overtaking

9. Ensure trucks are closed – tarpaulins

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Eskom Target Remains

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Zero fatalities Minimal impact on the

environment Sustainable development

Road to rail

Coal availability and

alternative sources of

energy

Safety Awareness Message - Winter Operations

The winter period is the time where most incidents occur:

• Controls must be intensified

• Keeping lights on.

• Trucks must be well marked and kept clean to enhance visibility.

• Tightly manage driver hours and Fatigue.

• Keeping warm vs ventilation vs fatigue (communicated and balanced by truck drivers).

• No driving in misty conditions – Eskom transporters have an arrangement to park at one another's yards in

case safe areas are needed.

• Route risk assessment to be conducted continually

• Be cautious of harvesting period were framers have abnormal load implements driving on the roads.

• Veld fires are regular in winter and smoke from fires obscure visibility.

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Report bad and good

driving by coal truck drivers

to the Roshcon call centre

in Bethal on the following

numbers: 0860 768 726 OR

017 647 9000

! Phase 1 Rollout: February 2012

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Thank you for your attention

CONTACT US:

Nico Singh

Manager: Head of Road Logistics

Tel: 011-8008547

Mobile: 0823398544

Email: [email protected] :

Acknowledgments to: Yandisa Ndaba – Roshcon SHE Manager

Herman Brand – Roshcon Logistics Manager

Ockert Swanepoel – Eskom Corporate Vehicle Safety: