20 minute read

Rail industry shake-up

Transnet looks to improve effi ciencies

By Nelendhre Moodley

President Cyril Ramaphosa recently promised an overhaul of the rail sector with the introduction of new entrants. Is state-owned entity Transnet ready for some competition? “In the South African Economic

Reconstruction and Recovery Plan, the president indicated that there is going to be an increase in the number of public players in our system. We are getting ready for whatever competition might present itself,” Transnet Group CE Portia Derby told delegates attending the ENSafrica virtual event. In readying itself for new competition and to grow the business, the entity recently identified strategies to ensure a more e icient and streamlined business – this included relocating its executive team. “Transnet Freight Rail (TFR) executives are no longer headquartered in Johannesburg, but relocated across the operations to ensure improved decision making. There is now a greater delegation of authority appointed to all the individuals,” said Derby.

TFR’S STRATEGY FOR COMMODITIES

The commodities sector is an important one for Transnet, accounting for “about 80% of Transnet’s revenue mix”. The key contributing sectors are automotive (2%), mineral mining and chrome (9%), fuel and chemicals (9%), manganese (11%), export iron ore (11%), export coal (20%) and containers (17%).

Given the importance of commodities to Transnet Freight Rail, the entity, which is working to ensure that it moves product as e iciently as possible, will invest substantially in rail networks over the next few years. “If we fix the networks we will be close to using the current installed capacity of around 250mtpa in the system,” said Derby.

Speaking of the improvements being

“China remains the world’s manufacturing hub and we believe that the time is right to establish a direct link between the two areas. “ –Derby

Transnet looks to increase its rail capacity.

made around various commodities, Derby noted that with the coal cli expected by 2030, Transnet was investigating ways of improving e iciencies on its coal export channel that would enable it to meet the 81mtpa capacity.

In terms of iron ore, Transnet planned to bump up rail capacity from the current 60mtpa on the Sishen-Saldanha system to 67mtpa. The additional 7mtpa allocation is earmarked for emerging industry players.

“With regard to manganese, we have made a decision to migrate manganese out of Port Elizabeth to Ngqura. The plan is to increase our exports from Saldanha, but first we need the Department of Transport to approve this decision.” Talks with the department were already under way.

Further to this, Transnet planned to optimise the Richards Bay and Maputo routes and ports to progress chrome- and magnetite-related e iciencies.

The entity also remained focused on exploring avenues to improve its automotive sector performance, and was in talks with Ford Motor Company, which was looking to use the Port Elizabeth port for vehicle export.

“A lot of work is under way to ensure that we increase the rail capacity so that we are able to move both manganese as well as vehicles,” said Derby.

PORT PROPOSALS

Competition in the port space remains robust – this has seen South Africa’s position as a premier gateway into Africa somewhat eroded.

“A few years ago we were the biggest container port on the continent. We are now number three. In fact, over the past three years, 30% of additional capacity has been installed in sub-Saharan Africa,” Derby told delegates.

To respond to this threat Transnet was looking to implement a number of measures including establishing Durban as a hub port and launching a direct link between South Africa and China.

Durban’s port has a capacity of 2.9 million TEUs (two-foot equivalent units) and is Transnet’s biggest container port. Plans are afoot to increase its capacity beyond 2.9 million TEUs. Establishing Durban as a hub port will ensure that South Africa becomes more efficient and better placed in meeting global standards.

Speaking of the opportunity to establish a direct link to China, Derby said: “We think this is an important consideration given that China remains the world’s manufacturing hub, and we believe that the time is right to establish a direct link between the two areas.

“Going forward, we are looking to implement an old strategy which will see the Port of Ngqura become a transhipment hub linking routes directly between South Africa and China.”

Such a move would give South Africa a competitive edge as it would pave the way for “additional manufacturing capacity to come to our shores”.

“A proper transhipment hub at Ngqura will also allow us to establish ourselves as a server for the [Southern African Development Community] market as well as allow us to run smaller vessels from our ports like Durban,” said Derby. n

Transnet is getting ready for whatever competition might present itself. “ “ –Derby

“The commodities sector accounts for about 80% of Transnet’s revenue mix. “ – Derby

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CATERPILLAR AND THOROUGHTEC SIMULATION INK AGREEMENT

Caterpillar Mining and ThoroughTec Simulation recently concluded a global cooperation agreement that will bring the latest-generation simulator-based equipment training solutions to Caterpillar customers.

This will help them improve safety, boost productivity, increase machine availability and create more sustainable mining operations, the company says.

Under the agreement, Caterpillar Mining will recommend ThoroughTec Simulation as its approved supplier of mining equipment simulators. In turn, Caterpillar will provide ThoroughTec Simulation exclusive access to confidential Cat machine technical data and engineering expertise – enabling ThoroughTec to continue strengthening its capabilities as a leading global supplier of advanced mining equipment simulators.

ThoroughTec Simulation has been designing advanced, high-fidelity training simulators for almost 25 years, during which time the company has grown into one of the world’s leading training technology organisations.

VOLVO TRUCKS LAUNCHES FOUR NEW RANGES

BELL BEEFS UP EXCAVATOR RANGE

Volvo Trucks South Africa recently introduced four new truck ranges to the local market, with a strong focus on the driver environment, safety and productivity. The launch of the four new-generation extra-heavy commercial trucks – the Volvo FH, FH16, FM and FMX – is the biggest in the company’s history, Volvo says.

“Our aim is to be our customers’ ultimate business partner and to help them attract the best drivers in an increasingly competitive market,” says Marcus Hörberg, vice-president of Volvo Group Southern Africa.

All the new models are locally assembled at the company’s plant in Durban, KwaZulu-Natal. For this purpose, Volvo Trucks invested more than R2-million in the upgrade tooling and equipment in its plant. It also invested in the installation of innovative IT equipment and technology, which allowed Volvo Trucks’ global experts to remotely support the South African team.

This ensured that the company’s highest levels of manufacturing standards and quality assurance are still implemented despite the challenges caused by COVID-19 lockdown measures.

Bell Equipment, distributor of Kobelco Excavators in Southern Africa, has introduced the new 10th-generation Kobelco SK220XD to its range. This bolsters the region’s 20-tonne class with a heavy-duty machine that is both highly productive and economical in all aspects, the company says.

“The SK220XD-10 is loaded with features not usually found in 20t machines; features that make this model well matched to Africa’s toughest mining and construction sites,” says Bell Equipment marketing and alliance partner manager Stephen McNeill.

“The SK220XD-10 has a rated power output of 118kW at 2 000rpm and a maximum torque of 592Nm at 1 600rpm. Like the current SK210 and SK260, it is fitted with a four-cylinder Toyota Hino engine, which has performed exceptionally well in our construction, mining, and forestry industries. Bell has sold around 150 Kobelco machines with this engine since 2017.”

Kobelco continues to focus on hydraulic efficiency as the key to achieving maximum power output and lowest fuel consumption on its excavators. Reducing friction in the system means less energy is wasted and more work gets done with less fuel used, Bell Equipment says.

FORD MOTOR COMPANY INVESTS R15.8BN IN LOCAL MANUFACTURING

Motor manufacturer Ford Motor Company recently invested $1.05-billion (R15.8bn) in its South African manufacturing operations – marking the biggest investment in Ford’s 97-year history in South Africa.

“This investment will further modernise our South African operations, helping them to play an even more important role in the turnaround and growth of our global automotive operations, as well as our strategic alliance with Volkswagen,” said Dianne Craig, president, Ford’s International Markets Group.

“Ranger is one of our highest-volume, most successful global vehicles. This investment will equip our team with the tools and facilities to deliver the best Ford Ranger ever, in higher numbers and with superior quality.”

The annual installed capacity at the Silverton plant will increase to 200 000 vehicles from 168 000, supporting production of the all-new Ford Ranger pickup truck for the domestic market and export to over 100 global markets.

The plant will also manufacture Volkswagen pickup trucks as part of the Ford-VW strategic alliance. The expanded production will help create 1 200 incremental Ford jobs in South Africa, increasing the local workforce to 5 500 employees, and adding an estimated 10 000 new jobs across Ford’s local supplier network, bringing the total to 60 000.

Ford Silverton assembly plant.

VIRTUAL MINING INDABA 2021

Investing in Africa Mining Indaba 2021, Town February mining indabas. No pressing the scheduled for 1-4 February, one of the Cape flesh, no gate-crashing functions, no comparing Town International Convention Centre’s notes and tidbits of information and contacts largest and most notable annual events, was gleaned over drinks, snacks (and sometimes cancelled this year due to COVID-19. entertainment).

In its place was the Africa Mining Indaba Virtual event on 2 and 3 February (4 too if you were part of the Investec-sponsored PGM Roundtable of producers, manufacturers recyclers and users). Since the first Investing in Africa Mining Indaba was held 27 years ago in Cape Town, the annual, highly successful event has grown hugely in stature and size – from © Robert Tshabalala @ Financial Mail And the poor press and media who all these years have played the most important and useful role of nearly any participant and organiser (even sponsors). How could they keep the headlines rolling and exciting, and lure even those who have no connection or interest in mining in Africa to rush for the newspapers and publications and scramble 400 o icial and paid attendees, sponsors and to turn on the television and radio to see what presenters in 1994 to over 8 000 in recent years. Peter Major morsel of good news the indaba could bring to This is a premium attraction event Mergence Corporate SA this year? for the African mining industry and related Solutions Director: Mining All of these indabas are run by dedicated organisations – and most certainly for the city professionals who bring enormous good and of Cape Town. camaraderie to Cape Town and the country this time every But this year it was not to be. Instead, despite Africa Mining year. Quite possibly no other commercial or industrial event in

Indaba Virtual’s best attempts and even with President Cyril South Africa focuses so much on, and causes government, from

Ramaphosa and Anglo American’s Mark Cutifani featuring as the president down through the ministers and MPs, to think more opening day speakers and 6 000 “virtual” delegates, it just wasn’t deeply and reflect on, what they are saying and doing for the and never could be anywhere close to the same Indaba we have industry, let alone the country and its people. grown to love and anticipate these past three decades. What other industry event creates a better platform for That said, how successful was it? Who knows? Who can government to display to the world its general understanding tell? By what measure and appreciation for its can success be measured embattled mining industry? or claimed? And did the As the COVID Panic and deaths subsided – so did gold’s allure. Ramaphosa and Mining virtual competing Mines Gold @ oz inversely related to COVID-19? Minister Gwede Mantashe and Money and 121 Mining 2050 2050 were the biggest organisers

Investment two-day indaba, 1900 1900 and creators of the major that has previously run 1800 1800 mining unions in South simultaneously it in the 1700 1700 Africa. They, the two of upper part of Cape Town’s them, have done more to lovely Welgemeend for the 1600 1600 shape South Africa’s current past five years, pinching 1500 1460 1500 1460 mining and mining labour many of the bigger indaba’s 2019 2020 2021 environment than anyone loyal attendees and else in the country. So it is sponsors, have the same Seems Resources and the Big IT Companies are 2 industries that beyond imperative that both competing a ect? “thrive’’ under a worldwide pandemic. of them are able to attend

No. Not this year, because it also couldn’t 2850 JSE resource index in $ 2850 in the flesh, meet investors and industry players face to be held live Nor could the 2500 2250 2500 2250 face, and atone for what they previously “always held the 2000 2000 have done to mining and weekend before” Arabella/ 1750 1500 1750 1500 its former employees and

Standard Bank Mining 1250 1250 employers.

Indaba take its normal And what they can and share of the early-to-arrive 1000 900 1000 900 intend to do for the South larger indaba’s delegates. 800 800 African mining environment And what about the 2014 2015 2016 2017 2018 2019 2020 going forward. always entertaining -----AJ000/USDZAR (2594.12743) From irregular and (sometimes comical) and constantly increasing occasionally disruptive electricity costs, to

Alternative Mining Indaba? Which for the past 13 years, which constantly evolving (negatively unfortunately) ever-changing and makes its presence felt through media and the traditional march o -putting mineral, employment and financial legislation and on (but thankfully no storming of) the main indaba being held policies, to explaining and shaping a future that can harm or help at the Convention Centre? They too were forced to go the virtual South Africa’s growing unemployment and economic malaise. convention mode this February. Virtual indabas are not here to stay. They just can’t do what So yes, no “schmoozing and boozing” (as the various media needs to be done. Especially not in South Africa. We need the real so delightfully like to headline) this year at the various Cape face-to-face indabas more than ever. All of them! ■

LEMAITRE’S MAXECO BOOT CELEBRATES 30 YEARS

Safety footwear producer Lemaitre celebrates 30 years of its iconic Maxeco boot since the brand was introduced to South Africa in 1990. Maxeco is the first ever locally produced direct injection dual-density PU sole on a safety footwear style, says Lemaitre.

From humble beginnings, the Maxeco boot has become a key safety footwear product in the country. It ushered in the era of dual-density safety footwear, and is still among the most popular style of sole in the safety footwear industry today, says the company.

Lemaitre’s new campaign celebrates the widespread e ect of 30 years and millions of pairs of Maxeco serving South Africans. It’s created jobs through local sourcing and manufacturing and has contributed to an inclusive economy for all South Africans. And it has been on the front lines of the nation’s industries, protecting those who are strengthening South Africa, says Lemaitre.

SAIW AWARDS TWO INTERNATIONAL WELDING BURSARIES

The South African Institute of Welding (SAIW) recently announced the winners of its internationally recognised welding student training bursaries worth R120 000 each. Fhumulani Netshakhuma (22) and Palesa Mokoena (28) were each awarded the prized bursaries which provide a 28-week welding training course carrying both global recognition and access to opportunities for a welding career in 58 countries around the globe.

The course follows international guideline used across 58 countries and covers two weeks of theory, together with practical welding modules. The winning candidates will exit the course as highly skilled welders with opportunities to diversify into welding inspection, welding coordination or non-destructive testing, SAIW says.

MINES RESCUE SERVICES TESTS WORLD-FIRST TECHNOLOGY

Gold Fields’ South Deep Mine has been part of the testing of a new mobile rescue winder ‒ developed by the non-profit Mines Rescue Services (MRS) in collaboration with the Minerals Council South Africa, the Department of Mineral Resources and Energy (DMRE) and labour ‒ at South Deep’s Twin Sha .

The mobile rescue winder, a world-first technology, will allow proto teams to access sha s and carry out rescue operations at depths of 3 000m if required. It can carry up to six people at a time, as well as equipment and medical supplies. Previously, rescue winders could reach depths of 1 200m.

Mannas Fourie, CEO of Mines Rescue Services, says: “Eight out of the 10 deepest mines in the world are located in South Africa. Once the mobile rescue winder has been fully licensed by the DMRE, we will be able to access employees located at depths of up to 3 000m faster than we were able to before in the event of an emergency.”

Mannas Fourie, CEO of Mines Rescue Services, and Martin Preece of Gold Fields with the mobile rescue winder at Twin Sha .

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7TH ANNUAL EDITION

1 - 2 JUNE 2021

www.juniorindaba.com

FOR EXPLORERS, DEVELOPERS & INVESTORS IN JUNIOR MINING

Resources 4 Africa is pleased to announce the 7th edition of the annual Junior Indaba, taking place on 1 & 2 June 2021. Known for its incisive, informative and frank discussions, the Junior Indaba focuses on the exploration and junior mining sectors in South Africa and elsewhere in Africa, where industry experts debate crucial issues including:

• Access to finance • The regulatory environments • Outlook for commodities • Demand for metals • The global energy transition and what it means for juniors • The hydrogen economy and much more...

Popular features over the two days include: Lessons from the Legends; Myth Busters and a showcase of presentations from junior miners across the continent.

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