Challenges and mechanisms to improve productivity and sustainability in coal transportation by road in Africa. Presented by Etiyel Chibira of the Cross-Border Road Transport Agency during the Coal Transportation Africa Summit held in Johannesburg, South Africa on 20 May 2015.

2. Presentation Outline

3. March 2013
1 INTRODUCTION
• Transport is a catalyst for economic growth,
development, connecting firms, sources of raw
materials and production nodes as well as markets in
the domestic and international environments
• The Coal Industry heavily depends on the transport
capability to operate- land transport systems and
maritime
• Coal volumes moved by road are gradually increasing
• In SADC region road transport carries +/-80% of
regional traffic
• Given the significant role of transport in the domestic
and regional economies and coal industry, there’s need
for an effective and efficient transport system
Challenges and mechanisms to improve productivity
and sustainability in coal transportation by road

4. 2 ROLE OF COAL IN THE (SOUTH AFRICAN)
ECONOMY
Power generation Energy to industry
Liquid fuels
Foreign earnings
Employment

5. 3 THE ROLE OF ROAD TRANSPORT IN THE COAL
VALUE CHAIN
• Road transport facilitates physical
transportation of coal along the value chain
• Road transport is important in connecting
inland coal fields to production nodes
• Road transport links coal fields to rail
networks
• Road transport provides a faster alterative
to coal transportation-ideal in case of
emergencies
• Role of road transport gained momentum
post the deregulation of road transport in
South Africa in 1988 (Act 80 of 1988)
• Road transport is becoming popular not
only in the coal industry but in the
(domestic and regional) freight sector in
general, due to flexibility (routes and
volumes) and lower capital investment
compared to rail (immediate alternative)
However, road transport faces a number of
challenges

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4 CHALLENGES AFFECTING COAL TRANSPORTATION
BY ROAD
• The road infrastructure and capacity of the network restricts axle loads
• Poor road conditions emanating from lack of maintenance (sometimes there
isn’t clarity on road ownership between mines and transport ministries/
departments) impacting on road investment
• There are missing links on the network which increases the distances
travelled
• Vehicle capacity limitations restricts payee loads- limited mass
• For any given task, there are higher chances of more trips due to limited
vehicle capacity
• Overloading of vehicles
• In-transit handling equipment and spillages (road safety)
• Cost and missing efficiencies
• Inefficient regulatory mechanisms
• In case of cross border traffic, thick border posts and corridors
• Pricing and payment models sometimes impacts cash flows
Some Challenges

7. 5 APPROACH TOWARDS ENHANCING
PRODUCTIVITY AND SUSTAINABILITY
Coordinated Approach by
government and industry towards
rolling out balanced regulatory
control, infrastructure investment,
and road transport movement
facilitation
Government need to create
enabling regulatory and
legislative environment to
enable industry to do what
they do best: building efficient
vehicles, increasing productive
time, network preservation,
safety

8. 6 MECHANISMS TO ENHANCE ROAD TRANSPORT
PRODUCTIVITY
HEY…HOW CAN WE GET IT
RIGHT?
• Investment in infrastructure (new roads, expansion and
maintenance)
• Implementation of fit-for-industry regulatory framework and
legislation that promotes:
• Vehicle technological advancement
• Risk based regulation of coal transport industry-
accreditation
• Performance Based Standards
• Optimising loading capacity
• Greater cooperation among transporters for consolidation of
loads as need arises
• Reducing constraints and NTBs on major corridors linking coal
fields to ports including regulatory inefficiencies
• Reforming border post management systems and process,
CBM, OSBP, NSBP

9. 7 AN INTERMODAL APPROACH TOWARDS
TRANSPORTATION OF COAL
• Looking at rail and road as complementary
• Strategic development of rail and road network
• Road serving as feeder system to rail and market end on certain
corridors
• Road on its own where rail is not economic to construct
• Achieving the right intermodal mix at any given time based on
economic sense, need for efficiency and infrastructure needs

10. 8 OPTIMISING COAL TRANSPORTATION
The Power of Fit-for-Purpose
Vehicles and right mix of regulations
Through the right regulations, transport
operators will be able to introduce high mass
trailer designs which
• Increases load capacity
• Fuel efficiency
• Cost effective
• Reduces fleet requirements
• Reduces trips
• Reduces road damage

11. 9 THE FUTURE OF COAL TRANSPORTATION BY
ROAD
Advancing the road transport industry for
efficient coal transportation
To ensure sustained role of road transport in the
coal industry, it is recommended that there be:
• Sustained infrastructure investment
• Creation of a fit-for-purpose regulatory space
and establishment of flexible regulations to
encourage innovation in vehicle design
• Risk based accreditation schemes for
transporters in the coal industry
• Application of Performance Based Standards
coupled with Intelligent Access Programs
• Elimination of NTBs on corridors and border
posts
• Improving payment turn around times.

12. March 2013