TRANSNET Freight Rail (TFR), the largest business unit in the state-owned freight and logistics group, is ramping up its capacity to move export coal by 30% with a new 200-wagon train that will run between the Mpumalanga coal fields and the Richards Bay Coal Terminal.
Transnet Freight Rail, which has been criticised in recent years for failing to facilitate export opportunities during an unprecedented boom in commodity prices driven by China, has also introduced a new scheduling system to improve reliability and cut turnaround times.
CEO Siyabonga Gama said locomotive cycle times would be cut to 41 hours from 58 hours (29%), while turnaround times for wagons would drop to 48 hours from 63 hours (23%). Cutting handling times would "allow for higher reliability which will equate to improved sustainability and service predictability," Mr Gama said. "This is part of the scheduled railway philosophy introduced by TFR two years ago."
Project Shongololo challenges coal mining companies to take up the capacity that has been created. In its most recent financial year, Transnet expressed disappointment with the coal tonnages that it moved to Richard Bay. Only 69.2-million tons were exported after it had geared up to move as much as 75-million tons. The lower than expected volumes were due to a softening in global thermal coal prices on lower demand as economic activity was muted.
Transnet Freight Rail spokesman Sandile Simelane said he could not say which mines would join in Project Shongololo as customer information was confidential.
The new service had been made possible by changing how Transnet Freight Rail builds coal trains. Previously, trains were put together in the shunting yard at Ermelo after wagons were sent to coal mines in batches of 100. Now there are individual coal mines with rail sidings large enough to allow for the loading of 200-wagon trains. These trains would now operate permanently in this configuration, cutting out the shunting needed previously.
Under the current scheduling, which allows for two of these trains to run every day, the coal line’s capacity has been boosted to 81million tons a year. The capacity at the Richards Bay terminal is 91-million tons a year. With the new changes, weekly rail capacity for export coal will rise to 1.85-million tons a week, a 30% increase, said Shongololo project manager Pragasen Pillay.
The efficiencies created by easing congestion at the Ermelo yard also mean that Transnet Freight Rail will be able to rail more coal from Lephalale and the Waterberg region, Transnet said. Longer general freight trains will also be possible.
The new service would also boost the volumes that Transnet is able to rail to South Africa’s power stations.
CCC Price at posting:
3.8¢ Sentiment: ST Buy Disclosure: Held
