Developing rail lines through Botswana

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Dominic Ntwaagae, CEO, from Botswana Railways has presented at the Botswana Coal and Energy Conference. If you would like more information about the conference, please visit the website: http://bit.ly/13MkVsy

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Developing rail lines through Botswana

  1. 1. Presented By: Dominic R. NtwaagaeChief Executive OfficerBotswana RailwaysPowering the Economy into the FutureRail Infrastructure Developments inBotswana & Coal Transport via Rail as aStrategic Transport ModeDate: 17thApril 20131
  2. 2.  Background Who is Botswana Railways (BR)? BR’s Strategic Intent Botswana Railways Achievements Development of Rail Infrastructure Green and Brown Field Railway Coal Trial Run to Mozambique Key Challenges in the Development ofCoal Infrastructure Key Issues OutlookPowering the economyinto the future
  3. 3. Who is Botswana Railways (BR)??BR is a Strategic Government EnterpriseBotswana Railways (BR) is given a mandate as a soleoperator of railways since establishment in 1987 (BRAct 1986; Amended in 2004)◦ BR’s mandate is to provide transportation of goods andpassengers; efficiently, safely and cost-effectively; &more importantly to meet customer’s expectation.◦ Amendment of the Act provides for BR to form JointVentures, Subsidiary companies and to exploit otherinvestments.Powering the economyinto the future
  4. 4. Transports Passengers, bulk freight, parcels &containersBilateral Business Agreements for efficientinterchange between BR & NRZ & BR-TFR are inplacePowering the economyinto the future
  5. 5. Botswana Railways Current Group StructurePowering the economyinto the futureBotswana Railways(Botswana Railways Act)BR Properties (Pty) Ltd(Companies Act)100% BRGabcon JointVenture64% BRJTTM Properties64% BR; 3% BRProperties
  6. 6. Powering the economyinto the futureSource:www.botswanatourism.us/experience_botswana/railway_network_map.html
  7. 7. Type ofWagonBOH (Coal Hoppers) BHS (Botswana HighSided)Current OnorderCurrent OnorderNumber 35 34 200 334Load 52.55t 52 t 45.0t 45tBR’s Rolling Stock in Use for Hauling Coal
  8. 8. “Cecil-Centric”“Customer-Centric”Channel Operator1. Deteriorating profit2. Increasing cost structure with hugefixed cost (60/40)3. Maintenance Backlog4. Major Exposure/Potential BusinessCollapseSupply Chain Integrator1. Bulk Freight Railway/ Customer & Profit drivenorganization2. Unlocking Botswana Railways’ capacity e.g.export of coal, soda ash, salt, etc.3. Integrated logistics solutionsprovider/Container Business, etc.4. Commercial Exploitation of BR’s propertyportfolioPowering the economyinto the futureBR’s Strategic Intent
  9. 9. The BR Turnaround Strategy was adopted in 2006 andachievements are as follows: Installation of new trains operating signalling system(Safe Working System: completed in 2008). Recapitalization: Botswana Govt injected P300 million forprocurement of wagons. Procurement of 562 wagons ongoing:◦ 290 salt wagons, 204 high sided wagons, 34 coal hoppers &34 down sided wagonsPowering the economyinto the future
  10. 10.  Integrated logistics services:◦ Dry Ports Development: Gabcon Joint Venture Palcon to exploit container business in the Central region FranconPowering the economyinto the future
  11. 11.  Safety:◦ Implementation of NOSA 5 system: Achieved 3stars (2013).◦ Acquired a 3 year Rail Safety Regulator License tocross into TFR lines (2012).Powering the economyinto the future
  12. 12. Powering the economyinto the futurePowering the economyinto the future
  13. 13.  Trial runs from Francistown via Zimbabwe toMaputo Coal Terminal-Mozambique(1300kms): April 2012: moved 1 wagon (44 tonnes); reacheddestination in 3 days to Maputo November 2012: moved a 34 wagon train (1300tonnes); reached destination in 3 days; the consistwas 17 wagons from BR & 17 wagons fromNational Railways of Zimbabwe.Powering the economyinto the future
  14. 14.  Trial runs from Francistown via Zimbabwe toMaputo Coal Terminal-Mozambique(1300kms) Cont’d..: The successful trial was conducted inpartnership with African Energy, Morupule CoalMine, Grindrod Mozambique Limitada & VitolCoal South Africa. Rail operations carried outby BR, NRZ & CFM. Movement of coal via Maputo was provenfeasible; has provided invaluable technicalexpertise for the service in this route.Powering the economyinto the future
  15. 15.  Lack of synergy between coal miners and the railindustry and off-takers. Botswana is landlocked with no heavy-haulinfrastructure that allows direct export of coal toport. Due to involvement of other countries in thedevelopment of rail infrastructure to ports there isslow turnaround of Implementation.Powering the economyinto the future
  16. 16.  Rail infrastructure is highly capital intensive andtherefore requires huge funding. Most regional railways are confronting majorinfrastructure problems primarily associated withaging track.Powering the economyinto the future
  17. 17.  Coal Mining Houses – Readiness Commencement of Production Rapid Loading Infrastructure Railway Industry Railway Infrastructure Heavy Haul --- Light Rail Standard Gauge --- Cape Gauge Rolling StockPowering the economyinto the future
  18. 18.  Port Capacity Space Availability Handling (Automation – manual) Off-Takers Market Availability Off-Take Agreements Competitiveness Landed costPowering the economyinto the future
  19. 19.  Export of Coal through existing railinfrastructure to international markets viaMozambique & South Africa Integrated Transport Policy Green Field Heavy-haul RailwayDevelopments. Investment In Railway Assets – Recapitalization Long Term SolutionPowering the economyinto the future
  20. 20. Powering the economy into the future
  21. 21. Powering the economy into the futureThank you!

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