5.Willem Kuys

ORE LINE: Capacity Expansion

PRESENTATION to the Railway & Harbour Engineering Division of SAICE

on 11 September 2007

Willem Kuys

1TRANSNET freight rail

Content

HistoryInternational Iron Ore TradeDesign Parameters Broad plan

•Infrastructure•Distributed Power•Locomotives•Wagons•Power Sipply•Signalling

Volume and Capacity Build-up


History

• The 861 kilometre line was built by Iscor and opened in 1976 with a capacity of 17,5 mtpa

• The line has 10 crossing loops for train crossings spaced 80-90 kilometres apart

• Spoornet took over the line 1977 as a 15 year run-out project

• Idea was that line would revert back to Iscor after 15 years.

• Assmang started exporting iron ore over the Ore line from Beeshoek (70 km south of Sishen) in 1978

• The capacity of the line was increased in 2002/03 by installing intermediate loops increasing these to 20


Prince AlfredHamlet

Sishen

Saldanha

Cape Town

East London

Port Elizabeth

Mosselbaai

Bredasdorp

Protem

StellenboschFranschhoek

Bitterfontein

Porterville

Atlantis

RiversdaleKnysna

George AvontuurPatensie

Klipplaat

Oudtshoorn

Rosmead

Kirkwood

Cookhouse

Noupoort

De Aar

Prieska

Upington

Kakamas

Naroegas

Worcester

Touwsrivier

Sakrivier

CalviniaHutchinson

Kootjieskolk

Beaufort West

Belmont

Douglas

Hotazel

Warrenton

Pudimoe Makwassie

Mafikeng

Ottosdal

Vermaas

KlerksdorpOrkney

Coligny

Vierfontein

BultfonteinWhites

Kroonstad

Bloemfontein

Aliwal North

Sannaspos

Dreunberg

Springfontein

Koffiefontein

HofmeyrSchoombee

Barkly EastMaclear

Queenstown

Blaney

Bethulie

Umtata

Amabele

Maseru

Marquard

Ladybrand

Bethlehem

Wolwehoek

Lichtenburg

Warden

Harrismith

Bergville

Kokstad

Matatiele

Harding

Port Shepstone

Kelso

Durban

Kranskop

RichmondUnderberg

Stanger

Nkwalini Richards Bay

VryheidHlobane

Ennersdale

Ladysmith

Roossenekal

Steelpoort

MachadodorpBelfast

Lothair

Komatipoort

Barberton

Phalaborwa

Messina

Louis Trichardt

Soekmekaar

ZebedielaVaalwater

Nylstroom

JohannesburgPretoria

Middelwit

Ellisras

Northam

Utrecht

VolksrustVrede

Potchefstroom

Empangeni

Simuma

Donnybrook

Greytown

Franklin

Kimberley

Marble Hall

Standerton

Bethal

GelukplaasHawerklip

Graskop

Winburg

Theunissen

Breyten

Derwent

Pienaarsrivier

Plaston

Naboomspruit

Golela

Sterkstroom

Stormberg

Pietermaritzburg

Newcastle

Ancona

Welverdiend

Ramatlhabama

Thabazimbi

Kaapmuiden

Hoedspruit

Beit Bridge

Nelspruit

Witbank

VredefortDover

Arlington

Ermelo

Addo

Grahamstown

Graaff-Reinet

Mhlume

Glenside

Bruyns Hill

Mt Alida

Alicedale

Ngqura

Ore Line

Kumba Erts

Assmang Beeshoek

Sedibeng Palingpan

Assmang Khumani

Kumba (Sishen South)


SEABORNE TRADE OF IRON ORE Growing at 5.3% p.a.

300350400450500550600650700

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

f20

05f

2006

f20

07f

MIL

LIO

N M

T 570 Mt

(Source: CRU)


MARKET ANALYSIS – DEMANDSEABORNE IRON ORE IMPORTSSEABORNE IRON ORE IMPORTS

0

100

200

300

400

500

600

700

800

900

1000

2003 2008 2013 2018 2023

China

Other

29%

71%

78%

22%

66%

34%

2003 20252015

China will become the dominant iron ore importerChina will become the dominant iron ore importer(Source: Market Analysis)


MARKET SHARE OF THE SEABORNE MARKET

33%

36%

8%

5%

6%

3%

2%1%

6%

BrazilAustraliaIndiaSouth AfricaCanadaSwedenMauritaniaVenezuelaOther

(Source: Tex Report, AME)


IRON ORE LINE LAYOUT

To Saldanha Steel

KUMBA/ASSMANGLoading Stations

SAPOTippler,

Stacking/Reclaiming

SAPOReclaiming & Ship Loading

Shipping patterns

SALKORCompiling/De-compiling

trains,Shunting, NTG, Wagon & Locomotive maintenance

RAIL OPERATIONSTrain operations, Crews,

Traffic Control, Perway, Communication, Signalling, Power supply & Infrastructure

maintenanceBeeshoek

Sishen South

ERTS

BKN

NPABerth capacity, Berths,

Marine services

Off Loading8 – 9

Hours

Rail Distance of 861 km; Single line TrainOperations : Loaded throughput 22 hours;

Empty thoughput 20 hours

Loading 8 – 9

Hours

Total Systemcycle time

Time +/- 64 Hours(Loading to loading)

Halfweg – Re-manning of trains

Crew book off

Source: Iron Ore Line Production and Investment teams


Operational re-design

Assessment of infrastructure

Efficiency improvement

New technologies

Rail infrastructure establishment

New rolling stock

New design: Focus areas


Operational Re-design

• Present infrastructure and train design limited capacity to 37 mtpa• Various configurations of train consists and lengths were investigated for

the way forward• Basic principles of capacity

– Distance between crossing loops– Speed of trains– Train lengths


Infrastructure Configuration

• Single line track layout–Crossing loop spacing and train speed determine number of slots

• Higher throughput volumes:–Single line with limited slots

• More slots * More crossing loops• More tonnage per slot * Longer trains

* Longer crossing loops–Double line

• Run more trains

• Longer trains with less infrastructure vs Short trains with double line


Train Configuration

• Spoornet solution–Longer trains

• Presently–2 by 108 = 216 wagon trains with headend locomotives

• Planned–3 by 114 = 342 wagon trains with distributed power–40 slot grid with 28 trains/week Even loops–72 slot grid with 44 trains/week All loops

• Future–3 by 140 = 420 wagon trains with distributed power–72 slot grid with 44 trains per week All loopsOr–40 loops with 2 by 114 = 228 wagon trains


Distributed Power (DP)

• Distributed Powered (DP) trains to be deployed

• Locomotives are distributed through the train


Distributed Power


Distributed Power (DP)

• Distributed Powered (DP) trains to be deployed

• Locomotives are distributed through the train

• Locomotives in train are remote controlled by radio

• Train forces and train dynamics significatly improved

• Braking improved, shorter stopping distances

• Enables longer trains with one crew


Train Operations• Train unit = 114 wagons with a locomotive attached at each end

114 wagons

Unit



• Main line train = 3 independent units complete with locomotives

Units controlled with DP from crew in leading cab

114 wagons

Unit

114 wagons

Unit

114 wagons

Unit



• Main line train = 3 independent units complete with locomotives

Units controlled with DP from crew in leading cab

114 wagons

Unit

114 wagons

Unit

114 wagons

Unit

• Main line train can run with 1, 2 or 3 units and improves flexibility

• Main line train decompiled for loading and off loading at terminals

• Locomotives remained coupled to units at terminals


Design Parameters

Present 47 mtpa 61/90 mtpa

Wagons/train 216 342 420

Train length 2 430 3 850 5 020m

Wagon payload 100/85 100/85 100

Net ton/train 20 000/21 600

34 200/29 070 42 000

Slots per week 28 28/44 44

Distributed power none Electric/diesel mixed Electric

Train loading time 8 hours 8 hours 6:45 hours


Changes to increase capacity

Increase the length of ALL loops (odd & even) to accommodate the

342 wagon trains

Build new loop (7A) to replace loop 7

Upgrade yard capacity to operate 342 wagon trains in Salkor yard,

link line to the port and at loading sidings

Install 1:20 crossing at loops to decrease the cycle times on the line

Increase energy supply from Eskom to accommodate 9 active

locomotives in a sub-section (feeder lines, sub-station, etc)

Build feeder substations

Build Eskom transmission lines & substations


Changes to increase capacity

Change rolling stock maintenance facilities to in-yard maintenance

Replace the signaling system with electronic switching

Upgrade and new equipment at Saldanha Port and loading sidings

Upgrade 1000 85 ton payload wagons to 100 ton

Purchase 1070 new 100 ton payload wagons

Purchase new electric locomotives

Install DP in existing and new locomotives

Electric brakes in all electric and some diesel locomotives

Repeater stations along railway line to relay DP signals.


Volume Demand Scenarios

25

35

45

55

65

75

85

95

Jul-0

5

Jan-

06

Jul-0

6

Jan-

07

Jul-0

7

Jan-

08

Jul-0

8

Jan-

09

Jul-0

9

Jan-

10

Jul-1

0

Jan-

11

Jul-1

1

Jan-

12

Jul-1

2

Jan-

13

Jul-1

3

Jan-

14

Jul-1

4Months

Mill

ion

ton

per Y

ear

Customersoptimistic scenario

Customer confirmeddemand

Planned for 41 Mtpa

Opportunity


Capacity Build-up

25

30

35

40

45

50

55

60

65

70

75

Jul-0

5

Jan-

06

Jul-0

6

Jan-

07

Jul-0

7

Jan-

08

Jul-0

8

Jan-

09

Jul-0

9

Jan-

10

Jul-1

0

Months

Mill

ion

ton

per Y

ear

Customersoptimistic scenarioCustomer confirmeddemandPlanned for 41 Mtpa

Maximum RailCapacitySAPO/NPA Capacity


Critical Assumptions

• Wagon turnaround time from Sishen - 56 hours (currently 64 hours)

• Wagon turnaround time from Beeshoek - 72 hours (currently 84 hours)

• Operational efficiency of line 93%

• Locomotives remain on train during loading

• Train follow-up time 4 hours 12 mins

• Load-out rates at loading stations 5400 tonnes/hour

• Dual tippling of wagons


Thank you

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5.Willem Kuys