Eskom Coal Logistics Overview. Presented by Nico Singh during the 2nd Annual Coal Transportation Africa Summit held in Johannesburg, South Africa on 20 May 2015.

1. ESKOM
Primary Energy Division
2nd Annual Coal Transportation
Africa Summit
Indaba Hotel
20 May 2015

2. Reflection on recent Eskom-related
direct and indirect incidents
FCA fatality free days = 23 ; DEL fatality free days = 9
• Fatality of a coal truck driver – 14 January 2015 (application of the truck lock out
procedure)
• Fatality of coal quality sampler – 9 February 2015 (speeding, no safety belt,
obstruction on road)
• Fatality of member of public - 26 April 2015 (speeding, alcohol)
• Fatality of private truck driver - 10 May 2015 (speeding, overtaking, road
conditions)
• Fatality of member of public – 16 May 2015 (making unlawful U-Turn, driving in
the mist)
• Serious Injury of member of public – 18 May (driving in mist, failing to stop at
stop street, fatigue)
• Serious Injury of member of public – 18 May 2015 (speeding, failing to stop at
stop sign)
22015/05/20

3. 3
Eskom Coal Logistics Overview
Annually Eskom takes delivery of over 120 million tons of coal.
Conveyor
60%
Rail
10%
Road
30%
2015/05/20

4. 4
Integrated Logistics Strategy (ILS)
• Eskom contracting strategy
• 1st Option Conveyor
• 2nd Option Rail
• 3rd Option Road
• Road to Rail Strategy
• Reduce number trucks on the road
• Always will have an element of road. Gives flexibility to supply
chain.
2015/05/20

5. Road-to-rail migration is a National
strategic imperative for several reasons
Reasons for change
• Minimise fatalities as a result of road coal transportation
• Reduce damage and congestion on limited road infrastructure
• Reduce negative impact to coal haul town and communities
It is estimated that road externalities are costing the South
African economy R34 billion per year
Social
Economic
Environmental
• Reduce cost of coal transportation (enable optimisation of electricity
tariffs)
• Boost South African economy (through massive rail infrastructure
development)
• Stimulate overall job creation (through massive rail infrastructure
development)
• Reduce carbon emissions and overall carbon footprint
• Eradicate spillages and illegal dumping
Source:Remarks by Mr. Malusi Gigaba MP, Minister of Public Enterprises, Oct 2012

6. Overview of Eskom Road Transportation
1. Eskom transport coal by road in Mpumalanga Province over a road network of
about 3200 KM.
2. The coal is transported by a fleet of over 2000 trucks.
3. Average distance of about 600 000 Km/day – about 16 times around the globe
4. 124Kt of coal is moved on road per day on about 30-40 routes
5. Type of Road contracts
• FCA – Free Carrier - Transporters contracted directly with Eskom
• 58 Transport Contracts
• Delivered – Transporters contracted with mines
2015/05/20 6

7. Overall Challenges and Gaps
• Safety
• Performance and Productivity
• Systems and Processes
• Shared-Value in the Value Chain
2015/05/20 7

8. 8
Road Safety Initiatives
• Revised weekend operating hours
• Implemented 13 October 2013
• Stop loading operations on Friday evening at 18:00
• Resume loading operations on Sunday mornings at 06:00
• Past three years Eskom stopped road operations consistently during the periods of
Easter , Christmas and New Year
• Road operations stop on affected routes in misty conditions
• No overtaking
• No tailgating
• Involvement in the repair of coal haul roads
• Industry work groups on Road Safety and Road Conditions
2015/05/20

9. Public Awareness Campaigns
2015/05/20 9

10. Our reality…
1. The single biggest challenge of road coal transport is the increased operator and
public safety risk.
2. Due to the fact that coal road transport shares the road infrastructure with the general
population, coal road transport has a higher risk of accidents than other forms of
transport. This risk increases exponentially as the vehicle numbers increases.
3. Furthermore, there is a direct correlation between road conditions and operating
vehicle operating costs. There is a backlog of road maintenance on National and
Provincial roads, partly contributed by budget but exasperated by increased heavy
haul road transportation and overloading.
4. Varying degree of performance levels of many transporters and mines
2015/05/20 10

11. (FCA) PUBLIC FATALITIES (2010/11 -2015/16)
2015/05/20 11
A M J J A S O N D J F M
2010/11 0 2 2 2 2 2 4 7 9 10 11 13
2011/12 0 1 4 4 4 4 6 10 10 12 13 15
2012/13 0 1 8 8 8 8 11 18 18 20 21 25
2013/14 1 1 4 7 7 7 9 12 15 16 17 19
2014/15 0 0 0 0 0 0 3 3 6 6 6 6
2015/16 1
0
5
10
15
20
25
30
Public Fatalities

12. (FCA) PUBLIC INJURIES ( 2012/12 – 2015/16)
2015/05/20 12
A M J J A S O N D J F M
2011/12 10 10 12 15 17 19 24 24 26 30 31 35
2012/13 1 7 11 17 18 20 26 30 32 33 36 42
2013/14 0 1 7 16 18 18 19 23 29 30 31 35
2014/15 3 3 4 28 31 35 43 47 50 51 53 53
2015/16 1
0
10
20
30
40
50
60
Public Injuries

13. (FCA) CONTACTOR LOST TIME ( 2012/13 – 2015/16)
2015/05/20 13
A M J J A S O N D J F M
2012/13 2 2 2 2 2 2 2 3 3 4 4 5
2013/14 1 2 2 2 2 2 2 2 2 2 2 2
2014/15 0 0 0 0 1 1 1 1 1 1 1 1
2015/16 0 1
0
1
2
3
4
5
6
Contractor Lost Time Incidents

14. FCA Speeding Violations: YoY Comparison
2015/05/20 14
559688
613687
477375
338575
495557
306960
270913
230557
166973
156379
130230
81331
112751 113671
95635 88919
76876
44871
66126
94457 104122
88951 80981
78561
81677 86152
138273
77807
0
100000
200000
300000
400000
500000
600000
700000
January March May July September November
2013
2014
2015
Speed violations have
been decreasing year on
year.

15. Our area of focus within our control
– Management, systems,
2015/05/20 15
Policy-Level A
Defines approach and
Company Policy with
regards to Quality,
Environment, Health
and Safety, etc.
Procedure-Level B
Defines why, (purpose) and
who, what activities and
will do when.
Supervisory control
.
Work Instruction
-Level C
Defines how activities are carried
out.
Business control
Supporting
Documentation.
Does the documentation
indicate the
real situation
in practise.
Business Policy
Manual (Quality
Manual)
Procedures (addressing
business processes)
Including mandatory procedures for:
- implement and control of documents
- control of records
- internal audit
- control of nonconformity
- corrective action
- preventive action
Instructions and execution.
Supervisor/employee intervention
Supporting Documentation (Forms
, Lists , Registers ,
Templates, Matrices (M), etc.)
RECORDS
Record Keeping
-Level D
:Results Indicates effectiveness
of the system

16. Call for Industry Standardisation and
Support
Formal industry body/forum to regulate the industry in order to drive:
1. Driver Standardisation - continuous improvement
• driver database – profiling
• Compulsory defensive driver training
• Incentivisation for safety
• Eradication of fake licenses and undocumented drivers
• Conduct coal haul driver expo
2. Vehicle standardisation – continuous improvement
• Age of vehicles
• Markings
• Install drive cam technology
3. Transport Company Standardisation – continuous improvement
• Profiling
162015/05/20
Continuous Improvement
Self-funding opportunities

17. Call for Industry Standardisation and
Support
4. Shared Value
• optimised use of a vehicles resulting in less trucks needed
• Loading and offloading infrastructure
• Prevention of overloading
• Prevention of under-loading
5. Repairing of coal haul roads
• Routine maintenance
• Preventative maintenance
• Emergency repairs
• Stakeholders to get involved in “adopt” a road campaigns
6. Enforcement of traffic regulation on coal haul roads
• Visibility
• Weighbridge enforcement
7. No driving in the misty conditions
8. No Overtaking
9. Ensure trucks are closed – tarpaulins 172015/05/20

18. Eskom Target Remains
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Zero fatalities
Minimal impact on the
environment
Sustainable development
Road to rail
Coal availability and
alternative sources of
energy

19. Safety Awareness Message - Winter
Operations
The winter period is the time where most incidents occur:
• Controls must be intensified
• Keeping lights on.
• Trucks must be well marked and kept clean to enhance visibility.
• Tightly manage driver hours and Fatigue.
• Keeping warm vs ventilation vs fatigue (communicated and balanced by truck drivers).
• No driving in misty conditions – Eskom transporters have an arrangement to park at one another's yards in
case safe areas are needed.
• Route risk assessment to be conducted continually
• Be cautious of harvesting period were framers have abnormal load implements driving on the roads.
• Veld fires are regular in winter and smoke from fires obscure visibility.
2015/05/20 19
Report bad and good
driving by coal truck drivers
to the Roshcon call centre
in Bethal on the following
numbers: 0860 768 726 OR
017 647 9000

20. !Phase 1 Rollout: February 2012
20
Thank you for your attention
CONTACT US:
Nico Singh
Manager: Head of Road Logistics
Tel: 011-8008547
Mobile: 0823398544
Email: nico.singh@eskom.co.za :
Acknowledgments to:
Yandisa Ndaba – Roshcon SHE Manager
Herman Brand – Roshcon Logistics Manager
Ockert Swanepoel – Eskom Corporate Vehicle Safety: