Africa’s Heavy Haul Rail Overview and Outlook

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Henk Bester, Global Director Rail and Transportation from Hatch shared his insights into Africa's heavy haul rail networks and the opportunities for development.

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Africa’s Heavy Haul Rail Overview and Outlook

  1. 1. 01/2012 Africa’s Heavy Haul Rail Overview and Outlook Heavy Haul Rail Africa, Cape Town 6-7 November 2012
  2. 2. 2 01/2012 Content Africa’s railway networks Africa’s heavy haul rail network Factors influencing heavy haul developments Heavy haul network: A global perspective Questions
  3. 3. 3 01/2012 Africa’s rail networks Overview •  80 000 route kilometres •  7% of world’s total •  North, west and eastern systems are mainly stand- alone with little inter- connectivity •  Almost full railway interconnectivity within the SADC area, subject to axle load limitations •  South African network in excess of 20 000 kilometres: –  Heavy haul corridors –  General freight corridors –  Branch line network Luanda Lobito Walvis Bay Maputo Beira Nacala Durban Cape Town Saldana Richards Bay Lagos Douala Mombasa Port Sudan Alexandria Dar es Salaam
  4. 4. 4 01/2012 Africa rail network size and traffic by region 0 10 20 30 40 50 60 70 80 90 100 Route-km Passenger-km net ton-km Percent Regional Share of Network Traffic (%) Southern Africa Central Africa East Africa West Africa 0 5 10 15 20 25 30 35 40 Southern Africa Central Africa East Africa West Africa route-km(thousands) Route-Kilometres in Operation General Bulk HH Commodities transported by rail generally reflect the economic structure of the specific country 0 20 40 60 80 100 120 140 Southern Africa Central Africa East Africa West Africa nettonne-km(billions) Freight Transport General Mineral
  5. 5. 5 01/2012 Africa rail network: status quo •  Basic inland connectivity serving ports •  Most networks operate with original facilities, with little upgrading and in poor condition •  Most lines are low-speed, small- scale, undercapitalized networks with diverse, low axle loads •  Not suited to modern logistics requirements •  Limited expansion in last decades •  Interest only to explore Africa’s vast mineral resources Investment is required to sustain and expand
  6. 6. 6 01/2012 Content Africa’s railway networks Africa’s heavy haul rail network Factors influencing heavy haul developments Heavy haul networks: A global perspective Questions
  7. 7. 7 01/2012 Africa’s heavy haul rail networks Overview •  Less than 10% of a total 80 000km is heavy haul •  Heavy haul lines mainly in South Africa and some West and North African countries South Africa Guinea Gabon Egypt Tunisia Algeria Morocco Mauritania Countries with heavy haul lines Heavy haul defined as a combination of: •  25t/axle or greater and •  20 million gross tons per annum or in excess of 5000 gross tons per train
  8. 8. 8 01/2012 Africa’s heavy haul rail network South Africa’s network: current state Coal export line @ 26tal connecting coalfields in Mpumalanga via Ermelo to Richards Bay (~600km) Iron ore export line @ 30tal connecting the iron ore mines in the Northern Cape to Saldanha (860km) Source: TFR
  9. 9. 9 01/2012 Africa’s heavy haul rail network South Africa’s network: future state Source: TFR Coal export line @ 26tal Iron ore export line @ 30tal Mn ore export line @ 26tal connecting the iron ore mines in the Northern Cape to Ngqura (1060km) Waterberg Coal corridor @ 26tal connecting coalfields in Waterberg to Eskom and eastern seaboard ports (~1200km) Upgraded HH lines Minerals corridor from Limpopo @ 26tal to eastern seaboard ports Domestic Fe and Mn ore corridors @ 26tal Swazilink line @ 26tal More than 300% HH route growth over next 7 years!
  10. 10. 10 01/2012 Africa’s heavy haul rail network Current and future planned projects (In various feasibility stages) South Africa: Various Investments Botswana/ Namibia: Trans Kalahari 2000km railway: mine to coast Sierra Leone: Iron Ore developments 200km railway Gabon: Iron Ore & Manganese Projects 500km+ railway Guinea: Iron ore project 650km railway Botswana/ Zimbabwe/ Mozambique: ‘Transwana’ 1600 km Liberia: Iron Ore development 200km railway Mauritania: SNIM/Sphere iron ore project expansion, 650km railway Cameroon: Iron ore project 500km railway Mozambique: Coal projects 1000+km railway Republic of Congo: Iron ore project 500km railway
  11. 11. 11 01/2012 Africa’s heavy haul rail 0 20 40 60 80 100 120 140 160 Africa by rail South Africa by rail Heavy haul in Africa nettonne-km(billions) Freight by rail 20% 80% Rail vs Road Annual Volumes Rail Road 250Mtpa 1000Mtpa More than 60% of rail by HH, this will grow by an estimated 200% over next 5-7 years
  12. 12. 12 01/2012 Africa’s heavy haul rail network Outlook after implementing current/future projects •  North Africa remains an island •  North-South Corridor emerging in line with PIDA •  Central Africa’s position? •  Strong emphasis on unlocking coal, minerals and metals transport systems •  Heavy haul operations provide competitive logistics costs Countries with heavy haul lines (After future projects) South Africa Guinea Gabon Egypt Tunisia Algeria Morocco Mauritania
  13. 13. 13 01/2012 Countries with heavy haul lines (After future projects) South Africa Guinea Gabon Egypt Tunisia Algeria Morocco Mauritania Africa’s heavy haul rail network Regional network development opportunities EAC IGAD SADC ECOWAS TAH ECCAS International Corridor Traffic (million ton) <5 5 - 50 >50 Regional networks with heavy haul potential
  14. 14. 14 01/2012 • • • • • • • • • • • • • • • • • • 20 324km 2341km 1020km 3140km 2710km 2040km 474km 2781km 3968km 4800km 4763km 858km 3505km 1300km 1650km 806km 1893km 953km 2745km 1266km • • • • • • • • • Rail infrastructure The gauge factor •  Gauge and axle loading are not interdependent •  SADC regional network will naturally develop into a Cape gauge network •  West Africa could transform into a standard gauge system •  North-south corridor: cost versus benefits of gauge conversion
  15. 15. 15 01/2012 Content Africa’s railway networks Africa’s heavy haul rail network Factors influencing heavy haul developments Heavy haul networks: A global perspective Questions
  16. 16. 16 01/2012 Factors influencing heavy haul development Criteria •  Market imperative •  Volume imperative •  Standardisation imperative •  Political imperative •  Country stability •  Global cost competitiveness •  Ability to provide integrated network •  Supporting country infrastructure •  Access to capital/ investor support •  Capacity to develop, support and operate •  Sustainable development
  17. 17. 17 01/2012 SADC’s mineral resources: the market imperative Africa’s global share of mineral production versus global reserves reveals the potential opportunities for growth of the extractive industries, especially for mining iron ore, manganese, gold and aluminium. Total Iron Ore seaborne supply by region
  18. 18. 18 01/2012 Development of transport infrastructure Mining projects key driver 18 Mali Niger Chad Burkina Faso CentralAfrican Republic Democratic Republic of Congo Tanzania Rwanda Burundi Angola Zambia Zimbabwe Namibia Botswana South Afri c a Swaziland Lesotho Tunisia Algeria Morocco Benin Ghana TogoIvory Coast Congo Gabon Equatorial Guinea Nigeria Cameroon Libya Egypt Mauritania Sudan Eritrea Senegal Ethiopia Djibouti Guinea Somalia KenyaUganda •  Projects in various planning phases •  Mining development linked to upgrade of transport infrastructure (rail and port) •  Funding: various private and institutional investors •  China and India involvement dominant Sierra Leone Concept Pre-feasibility Detailed Feasibility
  19. 19. 19 01/2012 Africa heavy haul Global Landbridge? Railways are more and more competing with shipping lines Saudi Landbridge Eurasia Landbridge
  20. 20. 20 01/2012 Factors influencing heavy haul development Infrastructure limitations Luanda Lobito Walvis Bay Maputo Beira Nacala Durban Cape Town Saldana Richards Bay Lagos Douala Mombasa Port Sudan Alexandria Dar es Salaam Good Fair Poor Luanda Lobito Walvis Bay Maputo Beira Nacala Durban Cape Town Saldana Richards Bay Lagos Douala Mombasa Port Sudan Alexandria Dar es Salaam 1067 1000 1435 GaugeCondition Development of heavy haul networks will require drastic rehabilitation and upgrades of existing networks. In some instances the development of new routes/ lines are recommended.
  21. 21. 21 01/2012 Factors influencing heavy haul development Challenges and Interventions •  Geopolitics •  Network disconnected •  Lack of regional integration •  Low traffic-density/ volumes •  Intermodal competition •  Institutional arrangements •  Lack of investment/ finance •  Infrastructure limitations •  AU regional integration •  Financing/models •  Africa heavy haul rail master plan •  Consultation with stakeholders •  Effective /efficient regulations of rail operators/ operations •  Institutional capacity to monitor performance of network Challenges to expanding Africa’s network into HH Interventions to expand Africa’s HH network Expanding/Integration of Africa’s HH network Volumes/PIDA Government Support
  22. 22. 22 01/2012 Regional heavy haul development •  nn Light axle loading Low traffic volume Mix general freight & passenger Upgraded HH Technology overcome geometry restrictions Purpose built HH within network constraints Axle loading, gradients and track gauge Not industry std Purpose built HH Isolated lines Typically Std gauge, traction optimisation & regeneration benefits Efficiency Traffic mix Competing with road trucks Potential for regional integration
  23. 23. 23 01/2012 Content Africa’s railway networks Africa’s heavy haul rail network Factors influencing heavy haul developments Heavy haul network: A global perspective Questions
  24. 24. 24 01/2012 Heavy Haul expansion 1800’s : visions of transcontinental railways Liberalisation of African nations New world order emerging Positive spirit of African Renaissance
  25. 25. 25 01/2012 Where to from here? Networkability Liberalisation Globalisation • Uni-gauge • Uni-profiles • Collaboration • Inter changeability • Industrialisation of nations • Global market development • Transformation of systems • Entrepreneurship
  26. 26. 26 01/2012 Africa : heavy haul development Concluding remarks •  Rail is Africa’s competitive advantage •  Heavy haul and standard gauge should be considered for all new major expansions •  Cost imperatives and rail technologies will drive upgrading of existing strategic regional freight corridors to heavy haul •  Orchestrated planning and implementation required •  Africa is ready!
  27. 27. 27 01/2012 Content Africa’s railway networks Africa’s heavy haul rail network Factors influencing heavy haul developments Heavy haul networks: A global perspective Questions

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