8. PAGE
Global demand for South Africa’s high quality iron ore outstrip export
capacity since 1994
Through innovative execution and continuous improvement, Freight
Rail increased capacity of 18mtpa to ~28mtpa
A capacity expansion programme launched in 1994, increased
capacity to the current 62mtpa level:
− Existing crossing loops lengthened from 2.5km –4.5km to accommodate
longer trains
− State of the art signalling systems installed along the 861km length
of the line
− Track upgraded from 26 tons per axle to 30 tons per axle,
increasing wagon payload from 85 – 100 tons
− Rolling stock fleet expanded to increase rail capacity
− Introduction of radio distributed power (RDP) technology increased
train length from 216 wagons to 342 wagons during 2007 7
Successes the past 2 decades
South Africa now
operates the longest
production train in the
world – 4km : 342
wagons and 6
locomotives
9. PAGE
Class 43 Diesel-Electric Class 15 Electric
The Ore Line was commissioned with 31x Class 9E locomotives in 1976
These locomotives were replaced during the past 4 years with a fleet of 76x Class 15E
locomotives – power output 4’500kW or 6’000 hp/tractive effort of 588kN at
start and 454kN continuous – the strongest locomotives in South Africa,
supplemented by 32x Class 43D locomotives to haul general freight
8
Rolling Stock Modernisation
10. PAGE 9
Remote 3 (End Of Train)
Remote 2
Remote 1
Lead
Consist
342-wagon Radio Distributed Power Train
Statistics
Train Length 3,9 kilometres
Train Mass 42 320 Tons
Pay load mass 34 200 tons
Operating speed 60 km/h
Wagons type Gondola CR14 at 30t/axle
Payload per wagon 100 tons
Locomotives 15E Electric = 4410 KW
43 D/E = 2050 KW
11. PAGE 10
Operational Model
System 1: Loading at Mines
National Ports
Authority
Berth capacity,
Berths, Marine
services
Port Terminals
Reclaiming & Ship Loading
4
SALKOR
Compiling/De-compiling
trains, Shunting, NTG,
Wagon & Locomotive
maintenance
Rail operations
Train operations, Crews, Traffic Control,
Per way, Communication, Signalling, Power
supply, Infrastructure- and Rolling Stock
maintenance
Halfweg : Re-
manning of trains
Crew book off
2
Port Terminals
Off-loading & stacking
3
MINE SIDINGS
AND LOUD-OUT
STATIONS
Kolomela
Sishen
Khuman
i
1
System 2: Rail transit
System 3: Off-loading & stacking
System 4: Reclaiming & ship-loading
12. PAGE
Iron Ore Line Performance
Operational Efficiencies
11
Performance Area Past Performance Projections
2012/
13
2013/
14
2015/
16
2016/
17
2017/
18
2018/
19
2019/
20
Locomotive Efficiency
GTK '000/loco/month
48 429 52 028 55 000 55 000 55 000 55 000 55 000
Wagon Cycle Time
hours
94 93 76 76 76 76 76
On Time Departures
minutes
73 33 60 60 60 60 60
On Time Arrivals
minutes
140 233 120 120 120 120 120
16. Table of Contents
15
Transnet Engineering: Overview1
2 Western Region Overview
3 Saldanha Iron Ore Line
4 Challenges
17. PAGE 16
Continuous technology advancements and
improvements
Running
Maintenance
Refurbishing
&
Conversions
Locos, wagons, coaches,
components
Heavy
Maintenance
Upgrades
Locos, wagons, coaches,
components
New Builds
Locos, wagons
Leasing
1859 – Landing of the first
railway locomotive in
South Africa at Cape Town
Running maintenance was
first established
TE brings over 150 years of experience in the rail
engineering sector and has built substantial
expertise...
TE’s evolution and transformation of the SA transport industry1
1950s – Koedoespoort
plant established to
refurbish steam locos
1970s – Started
refurbishing electric locos
1999 – Expanded
capability to upgrade locos
starting with 6E1 to 17E
2007 – Upgrading of diesel
locomotives
2008 – Entered the
new build market
1: Evolution of locomotive capability illustrated
SOURCE: Team Analysis
18. PAGE
TE began its journey in 1860, and is currently a
leading Rail Engineering & Manufacturing firm
17
TE journey to date
Revenue
R13.71bn
Depots
150
Employees
~13,0002
Asset Value
R8.4bn
Factories
7
TE Today1
Coaches WagonsLocomotives
FoundryRotating
machines
Ports Rolling stock
Equipment
Wheels
1850 200919161892 1990 1994
First railway
in South
Africa
established
– Natal
Railway
Company
South
African
Railways
and
Harbours
was born
under the
Union of SA
Transwerk
branded as a
separate
entity within
Transnet
Links
between
various
Railway
Companies
started to
develop
SA infra-
structure
managemen
t became a
company
entity, and
Transnet
was born
Transnet
rebranding
and
structuring
completed –
Transwerk
became TE
First
locomotive
arrived in SA
– beginning
of TE
Arrival of
the first
train at
Johannesb
urg from
Cape Town
via
Bloemfont
ein
TE produces
the worlds
most
advanced
health train
(Phelopepa
1)
TE partners
with leading
internationa
l OEMs to
create world
class
products for
Africa
Official
opening of
the first
public
railway in
South
Africa,
from Point
to Durban
1 2013 results
2 Full Time Employees
2013
TE awards
R50bn for
1064
locomotives
to be
produced in
partnership
with 4 OEMS
as part of
the MDS
TE plays a
vital role in
ensuring the
success of
Transnet’s
Market
Demand
Strategy
SOURCE: TE
Offerings
9 Products
19. PAGE 18
TE Western Region Management
Operations
Mr Moeketsi JamJam
Business Manager
School of Engineering
Mr Vicky Geldenhuys
Business Manager
Risk & Safety
Mr Poobalan Pillay
Centre Manager
Western Region
Mr Patrick Rynhardt
Business Manager
Information Technology
Mr Andre Dookoo
Business Manager
Finance
Support Services
Mr Arne Bakkene
Plant Engineer
MPE
Ms Veronica van Rooy
Business Manager
Procurement SLD
Mr Bradley Bester
Business Manager
Product Development
Mr Roger Lawrence
Business Manager
Projects
Ms Heena Ranchod
Business Manager
Procurement SRX
Ms Bongiwe Mhlaluka
Business Manager
Human Capital
Mr Luvuyo Rulashe
Business Manager
Wheels
Mr Leon Stuurman
Business Manager
RSE
Mr Martin Esau
Business Manager
Rotating Machines
Mr Neville Solomons
Business Manager
Ports
Mr Bongufefe Ntengo
Business Manager
Wagons
Ms Karen Damon
Business Manager
Coaches
Mr Sedick van der
Schyff Business
Manager
Locomotives SLD
Mr Dirk Eygelaar
Business Manager
Locomotives BLV
21. PAGE
HISTORY
1909 Sawmill 1915 Early Carpenter Shop on the
right
1934 First imported mainline
passenger coach
1946 New Wagon Shop 1979 Aerial View of Salt River
plant
150 Year Celebration
Salt River 150 Years Old
20
22. PAGE
Western Region - Saldanha
21
End of train @ 4.1 kilometres
Key insights
Longest train in the world
–
▪ 4.1 kilometres
▪ 342 Wagons
▪ 5 Locomotives (4
electric and 1 Diesel)
▪ 1.2 million tonnes per
week
Provide Maintenance for:
▪ 130 Locomotives per
annum
▪ 6700 Wagons per
annum
▪ 8000 Wheels per annum
23. PAGE
Iron Ore Line – Availability and Reliability
22
Sishen
Postmasburg
Saldanha
Upington
Springbok
Bloemfontein
De Aar
Kimberley
Cape Town
Locomotives
91%
93%
Budget Actual
Availability
15
7
Budget Actual
Reliability
15
0
Budget Actual
Reliability
98%
99.3%
Budget Actual
Availability
Wagons
Availability Reliability (FPMKM)
Budget Actual Budget Actual
Locomotives 91% 93% 15 7
Wagons 98% 97% 0.07 0.03
24. PAGE
Customer Facing Businesses - Western Region
23
LOCOMOTIVE
S
Descriptio
n
Class 15E Class 9E Class 43D Class 34D Class 36D
Fleet size 76 8 29 16 4
WAGONS
Descriptio
n
CR 17 CR 13/14 DBR FMKJ CALJ
Fleet size 504 6120 75 60 80
COACHES
Descriptio
n
Metro
Shosholoza
Meyl
Premier
Class
Africa Phelophepa
Fleet size 45 30 14 29 36
WHEELS
Descriptio
n
Class 15E Class 9E Class 34D APS APD
Fleet size 612 18 636 6000 1500
25. PAGE
TE has a clear outlook of the broader
developmental agenda, driving both Growth and
Transformation
24
Key focus elements
▪ Industrialisation
▪ Export promotion
DTI – B-BBEE elements CSDP/ SD and B-BEEE elementDPE – CSDP/ SD elements
National objectives
▪ B-BBEE spend
▪ Investment in plant
▪ Intellectual Property
transfer
Description
▪ Localisation of production
▪ Development of BO,
BWO, YO, EME’s and
QSE’s
▪ The growth and development objectives aim to:
– Contribute toward competitiveness by
leveraging large-scale SOE procurement to
develop a local supplier base and in doing so
create decent jobs, decrease inequality and
eliminate poverty
– Influence foreign organisations towards
initiatives that lead to the development of
local suppliers
– Transfer of skills and IP to local companies
through ESD initiatives
– Development of local capability
▪ The transformation and empowerment
objectives aim to:
– Promote an equitable socio-economic
society through the integration of
historically disadvantaged persons into the
main stream economy
– Focus on “broad-based transformation
impact”
– Focus on “changing the ownership patterns
of the economy”
– Enable increase in black owned businesses
(BWO, YO, Disabled)
“Growth & development”
“Transformation &
empowerment”
▪ Small business promotion
▪ Preservation and
creation of jobs
▪ Skills development
SOURCE: Team analysis
26. PAGE
Taking this into consideration TE has developed an
over-arching strategic end state view of the
business by 2024
25
TE in 10 Years
Core
Business
Segments
African
Success
Story
People
Company of
Choice
Centre of
Operational
Excellence
SA Rail
Development
Leader
World Class
OEM
Leading Contributor to the local
economy and region by
promoting localization, skills
transfer, job creation and
sustainability
Promoter of BO, BWO, BYO,
Disabled EME and QSE
Businesses
Partake in Regional
Development Discussions (not
only in SA) Reduce any inefficiencies throughout all
business units
Ensure maximum capacity utilization and
demand management
Best in class Lean, Cost, Delivery and Quality
Identify, attract, select,
develop, and retain the
best talent
Employer of Choice with
attractive Employee Value
Proposition
TE ‘One Culture’
High focus on Talent
Management
Rail OEM of choice for African
customers
TE viewed as a partner and not
only as a Supplier
TE TransAfrica locomotive aimed
to be #1 seller in SSA markets
Refined Business Model to
enhance Competitiveness to
support SSA needs
Focused and fine-tuned operating activities and
businesses
Enabler to TFR and PRASA by providing:
Rolling stock manufacturing
Rolling stock maintenance.
TE operating at the levels of World
Class OEMs in its regions (SSA,
SA)
Move towards delivering higher
volume (units p.a.), standardized
base product offerings with high
tailoring potential
Clear Differentiators to other
OEMs
SOURCE: TE
29. WESTERN CAPE REGION
TABLE OF CONTENTS
28
SALDANHA TERMINALS OVERVIEW
TECHNOLOGY USED
BULK IRON ORE PROCESS
SALDANHA TERMINALS SHEQ
30. SALDANHA TERMINALS OVERVIEW
The port consists of the following:
o A reclaimed area on which
approximately 5.1 million tonnes of
iron ore can be stockpiled
o A causeway 2,3 km long from the
reclaimed area to the ore/tanker quay
o An ore quay with two berths
o The MPT with 3/4 berths
(depending on vessels’ LOAs)
o MPT capacity of 6.5mt per annum
The port of Saldanha is South Africa's main iron ore export harbour. A highly mechanized
ore-handling plant remains the largest facility at the port.
Multi Purpose Terminal (MPT) supporting iron ore exports as well as a variety of harbor bound
industries. The terminal has added Manganese exports to its service offering during 2014.
Saldanha Terminal is South Africa's largest natural anchorage and port with the deepest
water.
The first deliveries of iron ore were exported on the vessel Fern Sea during September 1976.
31. SALDANHA TERMINALS SHEQ
Safety, Health and Environmental accreditations:
Saldanha – Occupational Health & Safety Management Systems OHSAS 18001:2007
Saldanha – Environmental Management System ISO 14001:2005
Saldanha – Quality Management System ISO 9001:2008
Bulk – NOSA 5 Star
MPT – NOSA 4 Star
Saldanha – Rail Safety Regulator (Valid License)
Statistics for Saldanha Terminals:
BULK MPT
Target Actual (LE) Target Actual (LE)
DIFR 0.78 0.65 0.78 0.66
Cost of Risk 2.81 1.80 1.30 1.30
32. TECHNOLOGY USED
Multi Purpose Terminal
• General Cargo Operating System (GCOS3)
• GCOS is highly beneficial to the customer because all to cargo handling is recorded; from
where the cargo leaves the client to port entry and ultimately shipping. Each and every move
is recorded. During this time, the client is also informed of each event taking place with their
cargo.
Bulk Terminal
• Supervisory Control And Data Acquisition (SCADA) which runs the whole plant.
• SCADA interfaces to CommTrac which provides various reports (operational efficiencies,
delays, tonnages loaded etc.) and sent to clients daily.
33. BULK IRON ORE PROCESS
Rail offloading
• 2 x Tandem, Dual
Wagon, Rotary
Tipplers
• Rate Capacity
=8000 t/hr.
• Cycle Time=90
seconds
• Fully Automated
• Supplemented by
dust extraction
system
• Bag-house facility
and air emissions
control/recording
• Brake Wagons-
Noise control
Ore Stacking
• 4 x Bucket Wheel
type stacker
reclaimer
combinations
• Semi-automated,
operator
controlled
• Rated capacity =
10 000 t/hr
• Covered
conveyance
system
• Supplemented,
dust fogging and
demisting sprays
Ore Stockpile
• Stockpile capacity is
5.1 million tons
• Current provision,
13 ore grades
• MTS System -
Support materials
load/offload
tracking
• Water/stockpile
spraying system
• Conveyor belts: 26
km
Ore Reclaim
• 4 x bucket wheel
type stacker
reclaimer
combinations
• Semi-automated,
operator
controlled
• Rated capacity =
10 000 t/hr
• Covered
conveyance
system
• Supplemented,
dust fogging and
demisting sprays
Ore Loading
• 2 x boom ship
loaders
• 4 operating
modes i.e. single,
staggered, dual &
direct loading
• Rated capacity-
10 000 t/hr
• Inline product
sampling
• Covered
conveyor systems
• Dust suppression
system, online
dosing and
moisture analysis
and control
• Dual Berths,
maximum 21m
draft