Optimising a multi-load container transport corridor in South Africa


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Presented by: Mark Wootton at the 2009 Railways and Harbours Conference in Cape Town.

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  • What does this actually mean:- Currently there are many separate, independent and disparate, non-integrated container facilities within South Africa. Even though these may be owned by transnet, from an end-user perspective they are separate entities, each with their own ideosynchrycies. What is the end result, high cost, low efficiency and effectiveness. What is the objective – the opposite, a single user experience with access to data and information from all sites. Use of technology to reduce administrative and other costs. Is this achievable, we think so! Customers should have the ability to deliver and collect containers from any facility and the use of hub/spoke marine and integrated rail services offered to get cargo to or from the ultimate customer (the importer or exporter). So that is the objective, the reality is somewhat different.
  • Optimising a multi-load container transport corridor in South Africa

    1. 1. Optimizing a Multi-Load Container Transport Corridor in South Africa Mark Wootton Executive Manager: ICT Transnet Port Terminals 6 March 2009
    2. 2. CONTENTS <ul><li>Transnet </li></ul><ul><li>- Overview of Operating Divisions and Investment Plans </li></ul><ul><li>Freight system challenges </li></ul><ul><ul><li>The problem statement </li></ul></ul><ul><li>How is Transnet responding to the challenges </li></ul><ul><ul><li>Hub port concept </li></ul></ul><ul><ul><li>Inter-divisional supply chain corridors </li></ul></ul><ul><li>The role of technology </li></ul><ul><ul><li>Navis SPARCS N4 at the core </li></ul></ul><ul><ul><li>Optimization, integration and collaboration </li></ul></ul>
    3. 3. STRUCTURE Discontinued businesses Freight Rail RAIL Rail Engineering TRANSNET LIMITED PORTS National Ports Authority Port Terminals Pipelines PIPELINE Operational divisions (continued businesses) <ul><li>SA Express </li></ul><ul><li>Transtel Telecoms </li></ul><ul><li>Viamax </li></ul><ul><li>Autopax </li></ul><ul><li>freightdynamics </li></ul><ul><li>Housing Lending Book </li></ul><ul><li>Shosholoza Meyl </li></ul><ul><li>Arivia.kom </li></ul>Discontinued Businesses Supporting businesses: Transnet Property and Transnet Projects
    4. 4. Capex spending five-year plan: R78 billion* * * * * * 13% <ul><li>PIPELINE </li></ul><ul><li>Transnet Pipelines R10 bn </li></ul><ul><li>Multi-product pipeline – R9,3 bn </li></ul><ul><li>Gas line upgrading – R0,2 bn </li></ul><ul><li>PORTS </li></ul><ul><li>Transnet Port Terminals R9,5 bn </li></ul><ul><li>Durban – R0,9 bn </li></ul><ul><li>Richards Bay – R0,7 bn </li></ul><ul><li>Ngqura – R1,5 bn </li></ul><ul><li>Cape Town – R0,4 bn </li></ul><ul><li>Saldanha – R2,9 bn </li></ul><ul><li>PORTS </li></ul><ul><li>Transnet </li></ul><ul><li>National Ports Authority R18,5 bn </li></ul><ul><li>Richards Bay – R0,8 bn </li></ul><ul><li>Ngqura – R4,7 bn </li></ul><ul><li>Cape Town – R3,8 bn </li></ul><ul><li>Durban – R7,6 bn </li></ul><ul><li>Floating craft – R0,7 bn </li></ul><ul><li>RAIL </li></ul><ul><li>Transnet Rail Engineering R4,1 bn </li></ul><ul><li>Equipment - R2 bn </li></ul><ul><li>Upgrade of facilities – R1,1 bn </li></ul><ul><li>RAIL </li></ul><ul><li>Transnet Freight RailR34,8 bn </li></ul><ul><li>Coal Line – R4,9 bn </li></ul><ul><li>Ore Line – R3,8 bn </li></ul><ul><li>General Freight – R15,3 bn </li></ul><ul><li>Maintenance Capitalisation – R10,8 bn </li></ul>* Continuing businesses
    5. 5. The National Freight Logistics Strategy: The South African challenges System Challenge Impact Ageing infrastructure Restricted capacity, Unreliable services, High investment requirements Low efficiency High cost, Unreliable services, Low service levels Low collaboration Duplication, Under-utilisation, High costs Lack of integrated planning Spatial and timing mismatches, Wasted effort and resources Inappropriate regulatory framework and institutional structure No ability to change system, Monopoly pricing for “competitive” services, No or low competition
    6. 6. What do our Customers want and what do our Customers customers expect ? <ul><li>Their wants … </li></ul><ul><li>Shipping Lines </li></ul><ul><li>Fewer port calls for deepsea vessels </li></ul><ul><li>Faster vessel turnaround times </li></ul><ul><li>Optimised vessel utilisation </li></ul><ul><li>Integrated port and rail solutions </li></ul><ul><li>Cargo owners </li></ul><ul><li>Increased flexibility & reliability in getting their cargo to the terminals </li></ul><ul><li>Visible supply chain with access to information on cargo tracking </li></ul><ul><li>Access to a wider choice of lines for the benefit of lower costs </li></ul>Ngqura Large deepsea call Feeders SA’s Load Centre Feeders Feeders Inland distribution <ul><li>Exporters want faster & more transport channels to international & regional markets. </li></ul><ul><li>Shipping lines want integrated port rail solutions and good connectivity to hinterlands </li></ul><ul><li>With cargo consolidation, shipping lines are able to deploy larger vessels and the costs </li></ul><ul><li>per unit decreases </li></ul><ul><li>There is a need for automated custom processes between countries </li></ul>
    7. 7. The new operating model: <ul><li>High performance container terminals </li></ul><ul><li>(min 25 for feeders and 28 mainline carriers) </li></ul><ul><li>A common intergrated IT system </li></ul><ul><li>between the ports and the landside to provide visibilty in the supply chain </li></ul><ul><li>A centralised berth planning system for </li></ul><ul><li>the load centre that supports the </li></ul><ul><li>complimentary container ports </li></ul><ul><li>Value proposition will require a port rail </li></ul><ul><li>commercial solution </li></ul>
    8. 8. Integrated and coordinated action between the port and rail systems is necessary to meet the challenges by: <ul><li>Implementing a high performance rail corridor backbone for the country (recapture market share from road) </li></ul><ul><li>Operating the ports in a complementary manner to make the port system more efficient, increase maritime connectivity and reduce ocean freight rates </li></ul><ul><li>Integrating physical, financial and information flows along the port-rail supply chain to reduce administrative requirements and improve visibility </li></ul><ul><li>Formulating and implementing integrated service strategies for key customers </li></ul>
    9. 9. SPARCS N4 – Advanced Data Model <ul><li>Benefits </li></ul><ul><ul><li>Visibility across operations </li></ul></ul><ul><ul><li>Centralize functions </li></ul></ul><ul><ul><li>Lower Deployment Costs </li></ul></ul><ul><ul><li>Deployment choices </li></ul></ul>Facility Yard Quay Rail Gate N4 System Operator Complex
    10. 10. SPARCS N4 – Data Model Complex
    11. 11. Sparcs N4: ITT Durban Port Complex KGX Pier 1 DCT
    12. 12. Navis System Topology for Transnet Gauteng <ul><li>Gauteng </li></ul><ul><li>Rail Only </li></ul><ul><li>City Deep </li></ul><ul><li>Kazerne </li></ul><ul><li>Pretcon </li></ul><ul><li>Cape Town </li></ul><ul><li>Container Terminal </li></ul><ul><li>Multi-Purpose Terminal </li></ul><ul><li>Belcon (rail) </li></ul><ul><li>Eastern Cape </li></ul><ul><li>Marine Only </li></ul><ul><li>Port Elizabeth </li></ul><ul><li>East London </li></ul><ul><li>Ngqura </li></ul><ul><li>Durban </li></ul><ul><li>DCT (marine) </li></ul><ul><li>Pier 1 (marine) </li></ul><ul><li>Bayhead (rail) </li></ul><ul><li>Kingsrest (rail) </li></ul>
    13. 13. Sparcs N4: ITT - Setup <ul><li>Topology </li></ul><ul><ul><li>Users defined for specific facility or whole complex </li></ul></ul>
    14. 14. Infrastructure Overview
    15. 15. Server Requirements <ul><li>Total Servers Required for all sites: </li></ul><ul><li>2x DB Servers (Production & Backup) </li></ul><ul><li>50 x App Servers (Production & Backup) </li></ul><ul><li>20x Sparcs Servers (Production & Backup) </li></ul><ul><li>14x Radio Servers (Production & Backup) </li></ul><ul><li>6x EDI Servers (Production & Backup) </li></ul><ul><li>4x Web Servers </li></ul><ul><li>4x Load balancers </li></ul><ul><li>TOTAL = 100 </li></ul>
    16. 16. Sparcs N4: What do we get <ul><li>Visibility </li></ul>
    17. 17. Sparcs N4: What do we get <ul><li>Integrated Planning and Operations </li></ul>
    18. 18. <ul><li>Integrated planning and operations </li></ul><ul><ul><li>Create Facilities and Yards </li></ul></ul><ul><ul><li>Add ‘Yard Relay’ option between the two sites for transfers – </li></ul></ul><ul><ul><li>Designate Transfer mode: Truck, Train, or Vessel </li></ul></ul>Sparcs N4: What do we get
    19. 19. <ul><li>Rail / Port Integration: </li></ul><ul><li>Edit Train Visit Details </li></ul><ul><ul><li>Add Information to ‘Next Term/Facility’ field </li></ul></ul><ul><ul><li>This routes the train to the other Terminal </li></ul></ul>Sparcs N4: What do we get
    20. 20. <ul><li>Port-Rail Integration: </li></ul><ul><ul><li>After containers have been loaded onto the Train </li></ul></ul><ul><ul><ul><li>Advance the train visit to ‘Departed’ </li></ul></ul></ul><ul><ul><li>At Next Terminal – the Train visit will show as ‘Inbound’ </li></ul></ul><ul><ul><li>Once Train visit at Transfer terminal has ‘Arrived’ </li></ul></ul><ul><ul><ul><li>Containers can be discharged as normal </li></ul></ul></ul>Sparcs N4: What do we get
    21. 21. <ul><li>Inter-Terminal Transfers </li></ul><ul><ul><li>Selected designated containers </li></ul></ul><ul><ul><li>Re-Route with Train information </li></ul></ul><ul><ul><li>Load the Container to the Train </li></ul></ul>Sparcs N4: What do we get
    22. 22. Sparcs N4: What do we get <ul><li>Integrated Planning and Operations </li></ul><ul><ul><li>Vessel -> across ports </li></ul></ul><ul><ul><li>Rail -> Port </li></ul></ul><ul><ul><li>Inter-terminal movements </li></ul></ul><ul><li>Single source paperless data entry and billing </li></ul><ul><ul><li>Single multi-modal contract </li></ul></ul><ul><ul><li>One customer = one invoice </li></ul></ul><ul><ul><li>Paperless online or EDI data entry </li></ul></ul>
    23. 23. Sparcs N4: Where to from here <ul><li>Current Deployment </li></ul><ul><ul><li>Pier 1 (May 2007) </li></ul></ul><ul><ul><li>Port Elizabeth (Feb 2009) </li></ul></ul><ul><li>Roadmap </li></ul><ul><ul><li>East London (March 2009) </li></ul></ul><ul><ul><li>Ngqura (July2009) </li></ul></ul><ul><ul><li>Cape Town (Aug 2009) </li></ul></ul><ul><ul><li>DCT (Jan 2010) </li></ul></ul><ul><ul><li>Rail (July 2009 – Feb 2010) </li></ul></ul>