ROLLING STOCK PERWAY INFRASTRUCTURE MINING OPERATORS LOGISTICS ISSUE 2:2017
Bombardier Transportation Explores Further Opportunities in Southern Africa
Unveiling Of The First Trans-Africa Locomotive
Engine Lifecycle Management
Bimodal Solutions Transforming Logistics
T H E A U T H O R I TAT I V E A F R I C A N R A I LWAY P U B L I C AT I O N
We move more than just freight! Transnet Freight Rail is a division of Transnet SOC Ltd Reg No: 1990/000900/30 Transnet Freight Rail is an Authorised Financial Services Provider (FSP 18828) Tel: 0860 690 730
Transnet Freight Rail is investing in the positive progress of the South African economy. Investment programmes in rolling stock and infrastructure, together with increased volume growth, skills development and training all equate to a South African economy on the move, in the right direction.
delivering freight reliably
www.transnetfreightrail-tfr.net
EDITOR’S COMMENT An upswing in global commodity prices may offer some welcome relief to the global freight industry, after the protracted slump in commodity prices following the global economic recession. The World Bank’s recent Commodity Markets Outlook Report forecasts higher prices for industrial commodities, principally energy and metals, for the 2017/18 financial year. Global prices for energy commodities are projected to increase by 26% this year and a further 8% in 2018. In line with oil price forecasts, natural gas is anticipated to gain 15% this year, led by a jump in U.S. prices. Coal is seen climbing 6% in 2017, due to earlier supply restrictions in China, which consumes half of the world’s coal output. Prices for non-energy commodities, which include agriculture, fertilisers, as well as metals and minerals, are also forecast to increase - the first rise in five years. Metal prices are projected to jump 16% this year due to strong demand, especially from China, and supply constraints, including mine
RAILWAYS AFRICA disruptions in Chile, Indonesia and Peru. Labour strikes and contractual disputes at several large mines have contributed to higher copper prices. However, precious metals are expected to decline by 1% this year and a further 1% in 2018, as benchmark interest rates rise and safe-haven buying ebbs. The Commodity Markets Outlook Report provides detailed market analysis for major commodity groups, including energy, metals, agriculture, precious metals, and fertilisers. The report includes price forecasts to 2030 for 46 commodities and provides historical price data. Closer to home, there seems to be a shimmer of hope for the National Railways of Zimbabwe (NRZ), as it was recently announced that the Zimbabwean cabinet had approved the railway operator’s ambitious recapitalisation programme. Integral to the programme is the drive to seek private partnerships to strengthen the organisation, which currently finds itself in a state of disrepair. The NRZ is currently
operating at a serious deficit; employees are reportedly owed nearly US$100 million in unpaid wages amid continued layoffs. Officials seem adamant that the bid process will be opened to the market shortly, starting in May 2017. The Société d’Exploitation du Transgabonais (SETRAG)¹, a COMILOG subsidiary and a part of the French mining group ERAMET, is preparing for an ambitious modernisation and upgrade programme valued at approximately €400 million². The programme, scheduled to start this year, is expected to be rolled out over an eight-year period. The TransGabon railway crosses Gabon, from Libreville to Franceville, over a distance of 710km and has 52 engineering structures and 22 stations³. SETRAG operates the railway within the framework of a concession agreement drawn up in 2005 and updated in 2015. According to the agreement, SETRAG manages the infrastructure, traffic and railway operations including passenger and freight services.
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In South Africa, things look a little different. I am not sure how industry is fairing with the Passenger Rail Agency of South Africa (PRASA) and Transnet at present as I recently came across a frightening statistic indicating that PRASA has a budget deficit of R1.8 billion, with its current wage bill taking up 64% of its expenditure. This is before the 2017 wage increase comes into effect and, of course, the inevitable impact of strike action. I have also been told that tenders have been significantly delayed, payment for work completed is slower than ever and, in some instances, no orders are being placed. This begs me to ask the question: “What - if anything - is happening to remedy the situation?” I would like to know if the Department of Trade and Industry (the dti) is taking into account the negative impact of ineffective decision making within State Owned Entities (SOE) has on industry and the policies they have so carefully crafted? “Gear up, invest in facilities, create jobs” is what the policy
“What - if anything - is happening to remedy the situation?” I would like to know if the Department of Trade and Industry (the dti) is taking into account the negative impact of ineffective decision making within State Owned Entities (SOE) has on industry and the policies they have so carefully crafted?
https://za.linkedin.com/in/phillippadean phillippa@railwaysafrica.com
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EDITOR’S COMMENT
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dictates. However, projects stall during implementation. The impact - massive retrenchments, no new hires and an inability to service the debt incurred. It boggles my mind that we just accept it. Suppliers are held to account for the slightest hiccup, yet there are no penalties for the SOE and little consideration of the border socio-economic impact! Surely, there needs to be greater cohesion within all spheres of government to protect against this? This leads me to the latest report issued by the African Development Bank (AfDB), which in part reiterates my thinking – all that money, with very little impact. A recent press release, titled “AfDB assesses results of US$5 billion investment in South Africa” (which by the time you get this magazine would have run on our News Express) looks at the broader value of the US$5 billion investment. Since the funding was mainly on-lent outside of South Africa, it failed to address the AfDB’s objective of providing support to small and medium enterprises, or the issue of inequality
or inclusive growth inside South Africa. Citing the Medupi Coal Power Plant project as one example - the projected lifespan of the Medupi Coal Power Plant is over 50 years. However, the late delivery and the cost overruns of the project have caused power insecurity and hence damage to the economy. According to the AfDB evaluator general, Rakesh Nangia: “The report offers a thorough analysis of Bank performance and also of the limitations of the AfDB’s positioning in the South African context. Across its work in finance and infrastructure, stakeholders in South Africa saw the AfDB as simply a financier, rather than a valueadding knowledge provider and capacity supporter. The AfDB must think carefully about its comparative advantage and innovatively about funding instruments for the future.
lending institution has learnt from doing business in South Africa but also highlights South Africa’s need for improved policy as well knowledge and capacity building to manage infrastructure projects and procurement programmes to affect the desired socioeconomic impact that underlines policy and essentially the backbone to any infrastructure project – create jobs, build a better society, and improve the lives of citizens, amongst others of course! The full report can be read at http:// idev.afdb.org/en/ document/south-africaevaluation-bankscountry-strategy-andprogram-2004-2015
Phillippa Dean Railways Africa™ - Editor
Transnet forms part of this report with relatively similar results. The report makes for riveting reading. Not only does it deal with the lessons that the
Railways AfricaTM is published weekly and sent to subscribers of the Railways Africa™ News Express. Register online to keep up-to-date and informed. www.railwaysafrica.com/register
1. 2. 3.
SETRAG operates the railway within the framework of a Concession Agreement drawn up in 2005 and updated in 2015. SETRAG manages the infrastructure, the traffic and railway operations (passengers, wood, ore and other goods) Funding is from a number of sources including the IFC, PROPARCO, the private arm of the Agence Française de Développement (AFD) CSR Report 2015 – ERAMET www.railwaysafrica.com 3
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RAILWAYS AFRICA PUBLISHER Rail Link Communications cc
This Issue: Highlights
EDITOR Phillippa Dean
FEATURE BOMBARDIER TRANSPORTATION EXPLORES FURTHER OPPORTUNITIES IN SOUTHERN AFRICA
DESIGN & LAYOUT Craig Dean WEBSITE Craig Dean Michael Lotriet HEAD OF COPY Nicole Barnes newsdesk@railwaysafrica. com ADVERTISING Helen Bennetts +27 (0)10 900 4881 helen@railwaysafrica.com www.railwaysafrica.com/ rates-and-advertising
06 FEATURE BIMODAL SOLUTIONS TRANSFORMING LOGISTICS IN THE SOUTHERN AFRICAN MARKET
12 FEATURE AN INTEROPERABLE PAYMENT SOLUTION FOR SOUTH AFRICA’S UNIQUE COMMUTER MARKET
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18 AFRICA UPDATE
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PRESIDENT ZUMA UNVEILS THE FIRST TRANS-AFRICA LOCOMOTIVE
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A trusted industry leader For more than 90 years, Scaw, a South African industry leader, has been a leading supplier of cast railway products to the backbone of our South African economy. When safety and productivity are at stake, customers depend on Scaw’s 90 years of experience and expertise to design and manufacture railway products to the highest international manufacturing, safety and environmental standards. With one of the largest foundries in the Southern Hemisphere, Scaw produces an extensive range of railway products cast, machined and delivered to customer specifications or under international licence. Customers, both nationally and internationally, continue to choose Scaw products and expertise.
www.scaw.co.za
More than steel.
FEATURE: BOMBARDIER TRANSPORTATION
Bombardier Transportation Explores Further Opportunities in Southern Africa Original Equipment Manufacturer (OEM) Bombardier Transportation first established themselves in South Africa in 1995. In the 22 years since entering the South African market, Bombardier has supported the local railway industry with rolling stock, rail control solutions, product maintenance and services, as well as locomotive and commuter train refurbishment programmes. Bombardier has remained committed to investing in the country’s economic prosperity through investment, localisation and skills transfer - an ethos that has seen job creation, local capacity building, skills development and support of local supply chains. Bombardier South Africa has partnered with the country’s major rail operators to deliver state-of-the-art railway solutions and rolling stock. From delivery of the Gautrain, as part of the Bombela Consortium Company (BCC) through to signalling projects for the Passenger Rail Agency of South Africa (PRASA), Bombardier continues to be a critical partner in delivering rail services to South African commuters.
Bombardier South Africa is part of Transnet’s R50 billion rolling stock procurement programme. Of the 1064 locomotives on order, Bombardier is supplying Transnet Freight Rail (TFR) with 240 BOMBARDIER TRAXX Africa electric locomotives. Late last year, Bombardier opened a new manufacturing facility in Isando, Johannesburg, which now serves as the company’s South African head office. The site currently manufacturing Bombardier MITRAC high power propulsion equipment for installation in the TRAXX locomotives, being assembled at Edwin Swales, Durban. In an interview with Railways AfricaTM, Bombardier’s locomotive project director, Mathias Papritz, provided an update regarding the progress being made at the manufacturing facility.
Mathias Papritz, locomotive project director, Bombardier Transportation.
Papritz explains that production at the facility is well underway, with a full complement of technical and administrative staff working under the supervision of experts from Bombardier’s international operations. The site is currently assembling the propulsion units using a production line approach, with low voltage cubicles, high voltage cubicles
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"The Inland economies of SADC desperately need mass transit solutions to address freight and passenger requirements. Bombardier is driving innovations that target the requirements we see in various SADC countries. In addition to a good market outlook, we see opportunities to sell subsystems such as propulsion and bogie equipment, in partnership with local suppliers, targeting the regional rail market and export opportunities. Our solid foundation in South Africa, with a growing local supply chain, provides an affordable and sustainable base to offer manufacturing rail excellence beyond South Africa." - Aubrey Lekwane, managing director, Bombardier Transport South Africa
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FEATURE: BOMBARDIER TRANSPORTATION
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FEATURE: BOMBARDIER TRANSPORTATION and converter assembly as well as testing facilities are in operation. The fit-for-purpose units are tested on-site prior to being deployed to Durban, where final installation of the cubicles on the locomotives is underway. The Bombardier propulsion manufacturing facility is the first of its kind in the country. Papritz explains that “The team includes electricians, technicians, and engineers as well as the management and logistics teams needed to run a factory that is comparable with any Bombardier facility in Europe. All the required training is undertaken on-site, through a skills transfer programme, to ensure that manufacturing is in line with Bombardier’s international standards.”
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Papritz estimates that by the time the plant reaches full-scale production, the team will grow to about 200, demonstrating the capacity of projects of this nature to create jobs in the local economy, particularly when one considers the array of indirect jobs, as well as the development of a strong local supply chain for the project. Papritz highlights the level of localisation achieved as one of the company’s key objectives and, currently, they have reached approximately 60% local content on the TRAXX Africa locomotives for Transnet.
On opening, the facility had a staff complement of approximately 100 full-time members. However,
According to Papritz, mid-February saw two of Bombardier’s TRAXX Africa locomotives complete and are currently undergoing testing. Whilst an additional two units were in the final stages of static testing in Durban. Papritz states that production will be ramped up in the months to come and will reach full capacity by the third quarter of the year.
Bombardier Explores Opportunities In Africa
New Solutions For Old Problems
Papritz points out that in establishing a manufacturing base in South Africa, Bombardier has made a sizable investment in the country, and therefore it makes solid business sense to use the company’s local capacity to service countries in neighbouring states, and on the continent as a whole.
As an international leader in the urban mobility market, Bombardier is well positioned to introduce novel solutions to the constant challenge of congestion, air pollution and poor urban mobility that is arresting the development of many of Africa’s largest cities.
Managing director of Bombardier Transport South Africa, Aubrey Lekwane, says that: “The Inland economies of SADC desperately need mass transit solutions to address freight and passenger requirements. Bombardier is driving innovations that target the requirements we see in various SADC countries. In addition to a good market outlook, we see opportunities to sell subsystems such as propulsion and bogie equipment, in partnership with local suppliers, targeting the regional rail market and export opportunities. Our solid foundation in South Africa, with a growing local supply chain, provides an affordable and sustainable base to offer manufacturing rail excellence beyond South Africa.” While the company does not have any rolling stock orders on the sub-continent at this time, they have won several rail signalling projects in the region. In addition, Zambian minister of finance, Felix Mutati, recently undertook a tour of Bombardier’s facilities in Stockholm, Sweden during a recent diplomatic visit to the country¹. Shortly after, Bombardier representatives visited Zambia to explore possible opportunities in developing Zambia’s railway infrastructure. Lekwane explains: “The Zambian rail market is still growing. In this first phase, the tracks and signalling are being addressed, which is where we see various opportunities. Once concluded, the rolling stock requirements will be assessed, and we hope Bombardier will be chosen to supply our world-leading solutions.” 8 www.railwaysafrica.com
In 2015, Ethiopia’s Addis Ababa Light Rail Network entered into operation, following the Gautrain as the second high-speed electric urban rapid transit solution that connects key economic hubs in the city with the metropolis. The electrified railway represents a first of its kind on the African continent, as the network operates on its own dedicated power grid, removing the risk of services being interrupted as a result of the instability of the national power supply. The introduction of a rapid, light rail solution in Addis Ababa has dramatically improved congestion and provided urban passenger services for thousands of commuters since inception. In Nigeria, federal authorities have started to invest in several urban light rail transit systems, designed to ease congestion in some of the country’s busiest metropolitan regions. Lagos is currently home to approximately 21 million people, making it the largest city on the African continent², and Lagos city planners are hopeful that the
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FEATURE: BOMBARDIER TRANSPORTATION
Opening of the Bombardier propulsion manufacturing plant in South Africa.
Dynamic testing of the TRAXX Africa locomotives for Transnet underway.
Bombardier propulsion manufacturing plant in South Africa.
successful implementation of a light rail urban transport network will reduce congestion, minimise air pollution and provide citizens with safe and reliable public transportation solutions. Federal authorities in Abuja are making similar progress with the implementation of an urban light rail project, with federal officials confirming that construction on segments one and three of their light rail project are more than 80% complete. According to the acting secretary of the Federal Capital Territory (FCT) Transport Secretariat, Alhaji AbdulHamid Suleiman, construction on the line is 84% complete, with commercial services expected to commence in late 2017³. Country representative for RATP DEV⁴, Arnaud Legrand, spoke with Railways AfricaTM about the potential benefits that light rail solutions could offer urban centres in South Africa. “RAPT DEV only operates one system in South Africa, and as a company, we would like to engage local authorities in developing new urban transport solutions, light rail being an option that could offer many benefits. If you look at many of the city centres in South Africa, there are limited mass transit systems in place, and while bus rapid transit systems (BRTs) do provide mass transport, however, they do not address the of lack of capacity on the country’s road network to accommodate increasing traffic volumes.”
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Gauteng MEC for Transport, Ismail Vadi highlighted the problem of congestion on Gauteng’s roads in his recent announcement regarding proposed extensions to the Gautrain rapid transit system by saying: “Demand modelling was done to determine transport needs for Gauteng in 2025 and 2037. Through the modelling process, it became clear that the ‘cost of doing nothing’ in the province will lead to major road congestion in 2037, at which stage cars will travel at an average of 15km/h due to doubling of car growth.” While the extension of the Gautrain network may help to alleviate some of these challenges, road congestion and rising CO2 emissions continue to plague many of the country’s busiest urban centres. According to Lekwane: “Providing light rail vehicles for airport connectivity in SADC countries will contribute immensely to opening economies of the SADC region.” While there are no plans for the implementation of light rail in South Africa, nor in the SADC region at present, if the South African government follows the trend being set by Nigeria, Ethiopia, Uganda and Morocco in considering light rail for urban transport, it is clear that as a world leading provider of light rail and tramway solutions, Bombardier Transportation would be ideally positioned to take advantage of this potential opportunity in the future.
Lusaka Times, 25 January 2017: Busy Economic Schedule Awaits Mutati In Sweden; https://www.lusakatimes. com/2017/01/25/economic-schedule-awaits-mutati-sweden/ World Population Review, Lagos Population 2016: http://worldpopulationreview.com/world-cities/lagos-population/ Daily Trust, 17 January 2017; http://www.dailytrust.com.ng/news/general/abuja-light-rail-84-complete--fct/181188 RATP DEV is a key stakeholder in the Bombela Consortium Company, and currently, holds a 15-year contract to deliver operations on the Gautrain System.
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The group of RMR companies and Anglo Belgian Corporation (ABC) propose a wide range of traction engines for new build, repowering and modernization projects for both diesel-electric and diesel-hydraulic locomotives!
ABC’s proven robust design and longevity makes them ideal in shunting and heavy duty mainline locomotive operations in all environments. ABC is constantly evolving and developing new concepts for changing and challenging times and requirements in the railway traction industry.
ABC is one of Europe’s leading diesel engine manufacturers and has proven to be a reliable partner in powering locomotives with over a century of engine building experience.
With its “dual fuel” engines, ABC offers eco-friendly solutions that provide significant operational advantages by operating on diesel and natural gas (CNG or LNG)!
ABC’s product portfolio consists of 6 and 8 cylinder inline engines, 12 and 16 cylinder V-engines and covers a power range from 1000 HP up to 5000 HP. They are designed to perform in all heavy duty and continuous operational conditions.
ABC engines are long lasting, low maintenance, have long maintenance intervals and low fuel consumption while respecting all current EU and EPA emission regulations.
A-8184 Anger, Krausstraße 2, Baierfdorf 159, Austria mdreckman@rmr.or.at +43 3175 30517
Let the group of RMR companies tell you more about the ABC’s!
Let Our Global Team Power Your Future Les entreprises RMR et Anglo Belgian Corporation (ABC) proposent une vaste gamme de moteurs de traction pour des projets de nouvelles constructions, remotorisations et modernisations de locomotives dieselélectriques et diesel-hydrauliques. ABC est l’un des principaux fabricants européens de moteurs diesel et s’est révélé être un partenaire fiable dans la motorisation de locomotives grâce à plus d’un siècle d’expérience. Le portefeuille de produits ABC comprend des moteurs en ligne de 6 et 8 cylindres et des moteurs en V de 12 et 16 cylindres couvrant une gamme de puissance de 1000 CH à 5000 CH. Ils sont conçus pour fonctionner dans les conditions les plus ardues et en continu. La conception robuste et la longue durée de vie des moteurs ABC les rendent idéaux dans les opérations de manoeuvre (shunting) et les opérations d’utilisation lourde de locomotives de ligne et ce dans toutes les conditions.
El grupo de empresas RMR y Anglo Belgium Corporation (ABC) proponen una amplia gama de motores de tracción para proyectos de nueva construcción, repotenciación y modernización de locomotoras Diéseleléctricas y Diésel-Hidráulicas. ABC es uno de los principales fabricantes de motores diésel de Europa y ha demostrado ser un socio fiable en el suministro de potencia a las locomotoras, con más de un siglo de experiencia en construcción de motores. La cartera de productos de ABC abarca motores de 6, 8, 12 y 16 cilindros y cubre un rango de potencia de 1400 HP hasta más de 5000 HP. Todos nuestros motores funcionan en condiciones de servicio intensivo y continuo.
De plus, ABC adapte de manière continue ses produits pour satisfaire les constantes demandes de changement de l’industrie des locomotives de traction. Avec ses moteurs «dual fuel», ABC propose des solutions respectueuses de l’environnement qui offrent d’importants avantages opérationnels en fonctionnant en mode diesel et gaz naturel (GNV ou GNL)! Les moteurs ABC sont durables, requièrent peu d’entretien, ont de longs intervalles de maintenance et une faible consommation de carburant tout en respectant toutes les réglementations actuelles en matière d’émissions de l’UE et de l’EPA. Les entreprises RMR se tiennent à votre disposition pour vous exposer leur offre plus en détail.
El robusto diseño y longevidad de dichos motores hacen sean ideales en las operaciones de maniobras y en las locomotoras de servicio pesado para todos los terrenos. ABC está continuamente evolucionando y desarrollando nuevos conceptos para tiempos cambiantes y requerimientos desafiantes en lo que a la tracción ferroviaria se refiere. Con sus motores de “dual fuel”, ABC ofrece soluciones ecológicas que proporcionan importantes ventajas operacionales al funcionar con diésel y gas natural (CNG o GNL). Los motores de ABC son duraderos, de bajo mantenimiento, poseen largos intervalos, con un bajo consumo de combustible y siempre cumpliendo con las normas de emisiones UE y EPA. ¡Deje que el grupo de empresas de RMR lo guíe a través del ABC!
730 Cite des Jeunes, Saint Lazare, Quebec, Canada, J7T-2B5 +1 450 424 4112 info.rmr@railroadbusiness.com www.railroadbusiness.com
FEATURE: RAILRUNNER
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Bimodal Solutions Transforming Logistics in the Southern African Market Railways AfricaTM Magazine recently interviewed key role players in the partnership between Transnet Freight Rail (TFR) and RailRunner SA (RRSA). These industry leaders are currently working in close collaboration to bring bimodal freight services to South Africa’s road and rail industries for the first time. Thuthuka Dladla, TFR’s senior manager for inland intermodal and automotive operations; and Mike Asefovitz, TFR’s senior manager of corporate affairs, Mike Daniel the chief executive officer of RRSA; Thabiso Buku, the chairman of the RRSA board; shared their journey through more than five years of collaboration, negotiation and business development.
Intermodal Solutions for Africa’s Logistics Market The technological revolution has brought many innovative changes to the logistics sector in recent years. In response to the ever-changing needs of the global supply chain as well as the introduction of new technologies that have forever shifted the way that goods are transported across the world, service providers have had to respond to market demands and adapt to new ways of doing business. The introduction of containerised shipments, which started in the 1950s, has grown to dominate domestic and international freight on every level. Currently, it is estimated
that there are in excess of 100 million containers in active use across the world. Ultra-large container vessels are now able to load up to 18,000 TEU¹, and ports have had to ramp-up loading, offloading and container terminal capacities to respond to the demand. By extension, land transport modes have had to change the way that they do business to keep up with ever-increasing volumes. As a result of the logistic challenges associated with large consignments, the movement of goods through the supply chain needs to be planned with greater efficiency and precision. Road infrastructure – particularly within the developing
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world - is simply inadequate to support freight volumes of this scale. With congestion on the increase and carbon emissions on the rise, the need for efficient, wellintegrated, and sustainable freight solutions has never been more relevant. In response to these challenges, there has been a shift towards intermodal solutions that break down the barriers between transport modes, be it air, inland water, ocean, pipeline, rail or road². Each mode within the supply chain comes with its own unique set of strengths and limitations. The rail industry, for example, offers customers a service that allows for the seamless movement of goods across borders,
decreased delays as a result of road congestion, lower costs, and lower carbon emissions. At the same time, rail will never be able to achieve door-to-door delivery and, therefore, remains dependent on more flexible modes, such as road transport, to deliver on the first and last mile. An intermodal approach to land transport provides flexible solutions to moving goods; a flexibility that will never be achieved by rail alone. However, to realise efficient intermodal logistic solutions, service providers need to adopt novel technologies, construct business models that respond to the needs of multiple stakeholders within the supply chain and put in place the
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systems required to ensure the visibility and traceability demanded by customers in a modern, digitised world. It is with this in mind that South Africa’s Transnet Freight Rail (TFR) has explored intermodal solutions in recent years - a strategy that the organisation hopes will provide the opportunity to diversify and grow their market share. TFR represents the largest operating division of the Transnet Group and supports 15% of the nation’s freight tonnage. The division owns and maintains a network of 22,000 route-kilometres of track, connecting to the country’s ports and railway networks of neighbouring states. TFR operates approximately 1,200 trains per day, conveying 98 commodity groups over more than 4,000 origin-destination combinations. In the 2015/16 financial year, TFR moved 214 million tonnes of freight for their approximately 450 clients.
RailRunner – Innovating Bimodal Solutions for Road and Rail RailRunner NA Inc. is an American-based rail products and services provider that specialises in delivering cost-effective transport solutions to underserved
FEATURE: RAILRUNNER
markets worldwide. The company’s unique ‘Terminal Anywhere®’ technology enables service providers within the freight industry to combine the economics of rail with the flexibility of trucking while linking directly into the international containerised shipping network. RailRunner’s ‘Terminal Anywhere’ system relies on specialised bogies together with bespoke trailers that are compatible with both road and rail transport. RailRunner’s custom designed bogies perform two distinct functions, the first being the transitional unit that connects to a locomotive and the second being the intermediate units that connect trailers, chassis or swap-bodies to form a bimodal train. Bogies are placed on the rail using conventional 10t forklifts. A truck carrying a purpose-built trailer loaded with a container then backs up onto the railway line and loads it directly onto the intermediate bogie. This process is repeated until a train of the desired length is formed. A transitional bogie is then added to the first or last trailer, which is coupled to a locomotive. Upon reaching the desired destination, the train can be dismantled in the same manner and truck www.railwaysafrica.com 13
FEATURE: RAILRUNNER drivers are then able to pick up individual trailers, with containers already loaded, for delivery to the customer’s doorstep. Not only does the RailRunner bimodal vehicle provide the flexibility needed to integrate road and rail modes seamlessly, but also offers significant improvements on traditional rail technology. Daniel explains that “a RailRunner train can be assembled and dismantled under the catenary, removing the need for heavy lifting equipment, which is costly and cannot be operated underneath the overhead wires.” In addition, RailRunner’s self-steering bogies utilise air suspension technology that reduces vibration as well as vertical and lateral forces, which results in an impressive reduction in noise levels (5dB below
current standards). The ultra-compact bogie design achieves a mere 0,7m between units when coupled, in comparison to the 3,3m between traditional flat bodies. This compact design reduces wind resistance, saving on traction energy and allows for more units per train. The bimodal train can be configured to carry up to 40 trailers in one 700m-long train, with each bogie axle capable of carrying 20 metric tonnes. The system provides for simple and fast implementation in regions with minimal intermodal infrastructure and can be adapted to suit various railway gauges. Dladla explains that: “Transnet has been driving the road to rail strategy for some time, and after exploring a diverse range of intermodal technologies we identified RailRunner as
RAILWAYS AFRICA the best suited intermodal solution for our needs.”
RailRunner SA and Transnet Team Up for The Southern African Market In light of the synergies between RailRunner’s product offerings and TFR’s business plans, the entities entered into initial talks in 2010, culminating in a formal request for information (RFI) in 2011. This was followed with Transnet issuing a request for proposal (RFP) in 2012, and RailRunner submitted their pilot proposal in 2013. With consultation well underway between the two entities by this time, a due diligence investigation was conducted in April 2014, and RailRunner was announced as the preferred bidder for Transnet’s intermodal land project in November 2014.
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Dladla explains that both parties have undertaken considerable market research, stakeholder consultation and careful business planning to ensure that implementation is successful: “We do not want a situation where the project fails not due to the technology, but because of a faulty business model,” Dladla points out. In May 2015, the negotiation process culminated in the signing of a Heads of Agreement (HOA) between the two parties. The HOA proposes a business plan where Transnet and RRSA will form a new operating entity, as a 50%-50% joint venture, currently termed “Newco” (as the entity has not officially been named at yet). RRSA will introduce an additional service company, called RailRunner Network Services (RNS) as its operating subsidiary, which will invite private logistics businesses, to be equity partners in the firm. Dladla explains the approach by stating that: “Transnet is a reputable service provider with an already established market share. RailRunner may not provide services directly to the South African market as yet, but they have great technology. It was, therefore, decided to merge the two by establishing a company of common interest, which will function as an operating entity offering logistics solutions using bimodal technology.”
“Once implemented, manufacturing of the vehicles will be done at local rolling stock manufacturing sites, components and parts will be sourced through the local supply chain. This agreement will, therefore, have an impact on both direct and indirect job creation, skills development and will support local suppliers.” - Mike Daniel the chief executive officer of RRSA
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According to Daniel, the intellectual property (IP) rights to the RailRunner technology will remain with RailRunner NA Inc, until the completion of the homologation process, at which time the (IP) for the Cape Gauge equipment will pass to RailRunner South Africa However, the vehicles produced
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for South Africa will be manufactured locally, using the local supply chain to provide parts and components. This is in line with the localisation targets set for original equipment manufacturers (OEMs) in all of TFR’s current rolling stock contracts under the Market Demand Strategy (MDS). In September 2016, a definitive Memorandum of Agreement (MoU) was signed between Transnet and RRSA ratifying a 20-year partnership that will bring bimodal vehicles to the Cape Corridor, among others. The Cape Town to Gauteng corridor is well suited to bimodal transport that incorporates rail and road, as the 1,400km commute between Johannesburg and the Cape Town via the N1 highway brings with it considerable driver fatigue, road safety risks, congestion and the high fuel cost and carbon emissions associated with extreme long-haul road freight services. Payloads that will be moved using RailRunner trailers will include domestic freight along the CapeCor and NatCor networks; international freight containers to and from port facilities; coal for power generation; heavy haul commodities for the mining industry; and agricultural and food products, among others.
Bimodal Technology Furthering Transnet’s Market Demand Strategy While TFR started investigating in bimodal technology prior to the implementation of the company’s MDS business plan, the synergies between the business models being pursued by Transnet and
RailRunner’s intermodal technology are clear. According to Sandra Gertenbach, Transnet’s executive manager for strategy and business planning, the MDS encapsulates a major recapitalisation programme with a proposed budget of approximately R333.6 billion, to be spent over the 2012-2017 period on capital projects aimed at modernising South Africa’s ageing railway infrastructure, as well as upgrading port and pipeline facilities managed by the group. The bulk of the capital spending will be directed towards TFR with the view to recapitalising and restructuring TFR’s service offerings to meet their customer’s demands. First introduced in 2012, the MDS has several key targets that Transnet management wish to achieve over the medium to long term. These include addressing the company’s capacity shortages with the procurement of new rolling stock and locomotives to drive freight services in the country. Additionally, in line with the South African government’s development goals and transport policies, Transnet aspires to spearhead the shift from road to rail in response to the ever-increasing levels of road congestion and the rising number of road accidents associated with high volumes of heavy haul vehicles on the country’s provincial highways. In addition, the use of rail for heavy haul freight is far more fuel efficient and by extension produces less carbon emissions than road vehicles over the long haul, a point that is
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TEU – Twenty Foot Equivalent or TEU is an inexact unit of cargo capacity often used to describe the capacity of container ships and container terminals, which is based on the volume of a 6.1m intermodal container. – Wikipedia. DeWitt, W & Clinger, J (2007) Transportation in the New Millennium Committee on Intermodal Freight Transport Chairman: Gerhardt Muller, U.S. Merchant Marine Academy. www.railwaysafrica.com 15
FEATURE: RAILRUNNER highlighted in Transnet’s MDS. A shift to rail is equivalent to a shift to greener transport, and therefore a step in the right direction for the achievement of the UN’s sustainable development goals, to which South Africa and the greater SADC region ascribe. RailRunner’s bimodal technology very efficiently provides solutions to achieve a number of these goals. One of the primary reasons that clients favour road freight services over rail is the ability of trucking to deliver goods from the destination to the customer’s door, without the delays, cargo security issues and logistics challenges traditionally associated with moving between modes. RailRunner’s bimodal vehicles are compatible with the tracking technology used by the trucking industry, which provides customers with the visibility needed to plan the movement of their payloads through the supply chain – another significant advantage that road has traditionally had over rail. By removing a number of barriers to the uptake of rail services, the shift from road to rail becomes a more implementable strategy, both for customers and for service providers.
rather, this entirely novel business model.” With regards to some of the socio-economic aspects of the MDS – including job creation, the development of supplier industries for all modes of transport, and the effective implementation of skill development initiatives – Daniel highlights the far-reaching benefits that the partnership between Transnet and RRSA will offer the local economy. Daniel explains that: “Once implemented, manufacturing of the vehicles will be done at local rolling stock manufacturing sites, and components and parts will be sourced through the local supply chain. This agreement will,
RailRunner provides a first, long-haul and last mile solution in one – an approach that Daniel believes will revolutionise the freight industry, stating that: “Bimodal technology will do for African logistics what cellular phones did for African telecommunications”. Dladla reiterates this point by saying that: “Transnet sees bimodal technology as a disruptive force. However, it will not be the introduction of the technology that will disrupt the market, but 16 www.railwaysafrica.com
RAILWAYS AFRICA therefore, have an impact on both direct and indirect job creation, skills development and will support local suppliers.” Transnet lists among its MDS objectives the goal of providing worldclass technology and infrastructure for the South African market. As a world-leading rail technology innovator, RailRunner is well positioned to deliver on this objective. RRSA chairman Thabiso Buku points out that, as an international company, RailRunner offers the highest international standards in rail technology, which can now be adapted for the local market. Additionally, Buku highlights the
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benefits of the PublicPrivate Partnership (PPP) framework that has been used in constructing the agreement between Transnet and RRSA. “In South Africa, we speak a lot about the importance of public-private sector engagement to create jobs, build our economy and make South Africa a better country to live in. We see this partnership as an opportunity to form a joint venture that will serve the local economy.” Buku highlights the potential that bimodal technology holds for building the transport infrastructure necessary to facilitate trade, both domestically and within the broader SADC region to boost economic growth.
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Finally, one of the cornerstones of the MDS is to level the playing fields between road and rail services, thereby moving loads that are better suited to rail, back onto rail, while allowing the truck industry to dominate in the areas that they do best – which remains short haul, first and last mile service delivery. Dladla, however, makes it clear that the adoption of bimodel technology is in no way designed to compete with the trucking industry but, rather, is aimed at creating a mutually beneficial business model that takes advantage of the strengths of each mode. Buku points out that “stimulating competition in the market creates an environment where service delivery is more likely to improve across modes and regions.”
Bimodal Vehicles in South Africa’s Future The process of synergising Transnet’s bimodal needs with RailRunner’s service offerings has been a time consuming and cautiously implemented programme. And rightly so, as the introduction of this technology has the potential to define the future of freight transport in the country and across the broader region, if implemented correctly. Daniel explains that “RailRunner does not want to establish new manufacturing facilities, as there are already numerous facilities in the country that are currently under-utilised. As such, following the signing of agreements in September last year, we issued a number of local suppliers with RFPs, which closed on 15 December 2016.” Daniel confirms that the company has received a number of viable bids,
which are currently being sorted into a short list. Once bidders are approved, pricing and time frames will be established. Currently, RailRunner vehicles are designed to run on standard gauge, and as much of the Southern African region still runs on Cape gauge, the necessary modifications need to be developed and tested. This is further complicated by the fact that the United States uses the imperial system for parts and components while South African uses metric measurements. A homologation process is currently underway with various suppliers to ensure that the vehicles can be manufactured to specification in the country. As such, while it is clear that bimodal technology will be rolled out on South Africa’s transport corridors in the near future, it is not clear
at this time when that will be. The introduction of bimodal road and rail vehicles will no doubt be a disruptive force in the freight market – a move towards the seamless, integrated and highly visible freight solution that is so desperately needed to drive economic growth in the SADC region. ‘Business as usual’ in the freight industry has a very limited lifespan, as our road infrastructure weakens and congestion, road accidents and pollution catch up with us. TFR has, without question, put their best foot forward in adopting new technologies to implement the MDS for the betterment of the institution’s service offerings as well as to meet the needs of their customers with highly flexible, market appropriate transport solutions through
Surtees Engineering (Pty) Ltd based in Johannesburg, has been servicing the railroad industry in Southern Africa since 1982. Surtees Engineering concentrates its efforts on the manufacturing, repair and machining of specialised mining, steel production and railway related products for both freight and passenger rolling stock. Surtees Engineering specialises in the supply, refurbishing and the assembly of new wheelsets for a variety of rolling stock applications such as hoppers, locomotives, motor and trailer coaches as well as the manufacture of axles.
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FEATURE: PAYMENT SOLUTIONS
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An Interoperable Payment Solution For South Africa’s Unique Commuter Market The South African commuter market is highly diversified, with commuters needing a wide range of solutions to meet their various needs. The businessman travelling on the Gautrain between Sandton and OR Tambo International Airport has little in common with the approximately 15 million commuters who depend on the country’s sometimes unreliable passenger rail services, complicated bus schedules and the privatised minibus taxi industry for their daily commute. What is, however, evident is the need for an efficient, affordable, and above all accessible mass transport system that meets the needs of every South African, no matter their socioeconomic status. Arguably, one of the greatest challenges that the South African public transport industry needs to address is integration between modes, including rail, bus rapid transit systems (BRT), municipal bus services, and the private taxi industry – an issue widely discussed at the i-Transport and UATP conference and exhibition recently held in Sandton, Johannesburg. The interoperability of payment methods remains a priority for government as well as for various mass transit agencies as a result of recent legislative changes that requires traditional, interoperable bank-issued instruments to be used for mass transit payments.
Cashless Solutions The move towards a cashless society is fast becoming a reality across the developed world, and South Africa is rapidly following this trend. While up to 75% of retail transactions in South Africa were still conducted using cash by 2015¹, one cannot deny the benefits that cashless payments offer, which include reducing the security risk associated with carrying cash, the need to break large denomination notes for both customers and service providers as well as the costs associated with handling cash such as security.
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Electronic transactions have traditionally relied upon a customer’s access to the formal banking sector, such as debit and credit cards. According to the World Bank, however, there are as many as 12 million South Africans without access to banking services². As such, the majority of the public transport industry, with the exception of exclusive services such as Uber, the Gautrain, and air travel, remains largely dependent on cash-based systems. This means that the average commuter needs to make a cash purchase at each stage of their journey, which may include a minibus taxi or bus from their home to a nearby Metrorail train station, followed by another taxi or bus for the trip to their final destination. The number of transactions along the route is inefficient and presents a number of challenges for both commuters and service providers. GoPay, a partnership between Crossgate Technologies and Go Metro, focuses on the existing payments market, with cashless card and mobile payments being at the core of the business. As a targeted, vertical mass transit payment system, using card and mobile payment technologies, combined with GoMetro’s advanced mapping and insights gained through transit node data gathering and analytics, as well as significant skills in transportation planning, GoPay is an end-to-end payment solution that enables transactions to happen with the ‘tap’ of a card or mobile device using near field technology, while gathering deep data insights around the movement of commuters. The GoPay card is purchased by a user either at a retailer or from a fully automated kiosk, which can be loaded with value by inserting cash into a GoPay kiosk, mobile load agent or at a participating retailer, situated at strategic points across a transit route (at a bus station, retail centre or taxi rank, for example). Once a user ‘taps’ their card on a GoPay merchant device in the vehicle, the required value is deducted from their loaded
balance and transferred into the merchant’s account. In a recent interview with Railway AfricaTM, Crossgate chief executive officer, David de Coning explained that: “For all intents and purposes, the GoPay card is a bank issued card, underwritten by MasterCard and is, therefore, fully accredited and interoperable across multiple platforms. Our client base is varied, and could include mass public transport operators, such as PRASA, or the one-man business, such as a taxi driver or retailer.” The net result is that a commuter can transact electronically throughout their journey, while also being able to make regular retail purchases for goods at any merchant that accepts MasterCard.
GoPay As An Entry Point For Formal Banking Not only does the GoPay system remove cash from the formal and informal public transport systems, it also introduces “early” banking services to an untapped market for the first time. “This is the start of a very low-cost bank account,” de Coning explains, “if you develop an understanding of the payment behaviour of the target group, you can start offering more comprehensive banking products, and therefore you have the opportunity to bank the unbanked in South Africa.” In addition, Crossgate has proposed including an insurance aspect in their service offering, where a commuter has a measure of life and injury insurance if they are involved in an accident while using their GoPay card. De Coning states that a small portion of the GoPay fee will be deducted to pay insurance premiums. “In essence,” de Coning says, “the system has the potential to bank the unbanked and insure the uninsured.” Finally, the system includes a platform to gather large-scale big data, which can be used to profile the movement and retail activities of
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commuters. This data can be used to inform investment or support small and medium enterprise around transport hubs. De Coning states that the GoPay system is ready to go live as a turnkey solution for any customer who opts to buy in at present. The hardware and software is fully certified and is compliant with all necessary industry standards as well as the laws and regulations that guide financial service providers in the country, as a result of their collaboration with MasterCard and their banking partners.
FEATURE: PAYMENT SOLUTIONS It may be overly optimistic to believe that the introduction of a cashless payment system could answer all of the challenges currently being experienced by South Africa’s public transport system, it does provide an interesting opportunity to make tangible strides towards the seamless, efficient commuter experience that lies at the heart of government’s Transport Master Plan. While it will always remain a challenge to address the needs
of government-owned entities as well as private players in the public transport sphere, an independent system such as GoPay may be the solution that brings all players onto a single, integrated payment platform without undermining the independence and fierce entrepreneurial spirit of our minibus taxi industry.
Formalising The Taxi Industry With Cashless Fares The minibus taxi industry services millions of South Africans on a daily basis, however, it is the only mass transport system that is not subsidised to the same level as passenger rail and bus service providers. It is an industry built by entrepreneurs, with diverse role players and an organisational culture all of its own. While often villainized by the media, the minibus taxi industry provides public transport for a vast number of South African commuters and delivers first and last-mile connectivity between state-operated rail and bus services. The greatest potential obstacle to the implementation of the GoPay system is finding the funds required to implement the solution on scale, with more than 200,000 vehicles at its core. The company has undertaken extensive market research and has consulted with a multitude of stakeholders in the minibus taxi industry so as to target their product in such a way that it is as attractive as possible for commuters, taxi operators, owners and drivers. De Coning states that a pilot study has been successfully conducted within the taxi industry, which found many minibus taxi owners responding positively to the technology, as it reduces shrinkage of cash-based fares and enables them to track their assets and drivers. Drivers have responded well, as they report that dealing in cash is not only logistically difficult but also a distraction.
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IOL Business Report, 8 Feb 2015, Cashless society needs to be more inclusive: http://www.iol.co.za/business-report/economy/cashlesssociety-needs-to-be-more-inclusive-1814698 The World bank (2013) South Africa Economic Update: Financial Inclusion Critical for South Africa’s Poor, http://www.worldbank.org/ en/country/southafrica/publication/south-africa-economic-update-financial-inclusion-critical-for-south-africa-s-poor www.railwaysafrica.com 19
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PRESIDENT ZUMA UNVEILS THE FIRST TRANS-AFRICA LOCOMOTIVE President Jacob Zuma unveiled the first locomotive to be designed, engineered and manufactured by Transnet Engineering (TE), marking a crucial step in Transnet’s vision in becoming a leading manufacturer and supplier of rolling stock on the continent.
Transnet has identified innovation as central to placing the company at the forefront of the African continent’s drive towards strengthening its logistics infrastructure and engineering capability. It is also a crucial element of the company’s efforts to diversify sources of revenue. The locomotive is designed for the African landscape, and is suitable for use on branch lines and in the yard for shunting. It can be used on old rail tracks originally designed to carry light axle loads. The original underframe, superstructure, bogies, body, and locomotive control system were designed to withstand the African climate. Transnet Group chief executive, Siyabonga Gama said: “The locomotive is evidence of the strides we are making in transforming Transnet Engineering into an OEM for locomotives, a move designed to restore our position as a catalyst for African innovation, industrialisation and critically, intra-African trade.”
The Trans-Africa Locomotive is a brainchild of Transnet’s engineering and manufacturing division, Transnet Engineering. It was conceptualised and engineered by a team of experts from within TE and assembled at the company’s production facility in Koedoespoort, east of Pretoria.
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In addition, the Trans-Africa Locomotive is appropriate for aged railway lines that operate on the Cape Gauge system, offering a cost-effective solution for the majority of the continent’s railway lines that are currently unused.
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It also boasts the following features: •
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A diesel powered engine- ensuring regional accessibility where there are no electrical lines; A unique cabin design with front and rear facing windows, allowing for movement in both directions without obstructing the driver’s view, caters for customers who cannot afford two locomotives per route; Scope for customisation options for various uses, including diesel multiple unit conversions with smooth start-stop motion for public transport, cabin customisation, and engine upgrades.
Once in production, the locomotive is expected to grow and maintain Transnet's revenue streams across the continent and beyond. Transnet has, for many years, built and supplied rail stock for clients both within and outside of the borders of South Africa, but has never owned a product, from design to assembly. Thamsanqa Jiyane, chief officer advanced manufacturing at Transnet Engineering said: "In the past three years of our Market Demand Strategy execution, we have progressively boosted our research capability consolidated at Transnet Engineering and this is one of the many outcomes of such efforts." "Our teams are hard at work designing and engineering solutions for Africa across a wide range of applications in Transnet’s competence." The train is currently undergoing intensive testing in line with our rigorous engineering and commissioning processes.
NEW MOU TO ENHANCE TRADE LINKS BETWEEN EAST AFRICA COMMUNITY STATES AND DEMOCRATIC REPUBLIC OF CONGO TradeMark East Africa (TMEA) has signed a Memorandum of Understanding with Democratic Republic of Congo (DRC) to facilitate projects that will improve cross border trade and enhance trade links between the country and East Africa Community member states. With the MOU in force, TMEA, a leading trade facilitation institution, will replicate and consolidate its success in contributing to the ease of trading across borders and in this case, by investing in already available resources like water transport, simplifying trade processes through training and facilitating adoption of Information Communication Technology (ICT) around Eastern DRC. The government of the Netherlands made a commitment of US$6.7 million to kick-start the projects. The projects will comprise dredging and rehabilitation of Kalundu port on Lake Tanganyika, support to cross border trade which will include capacity building and implementation of Integrated Border Management systems on the border crossings in Rusizi between Rwanda and Bukavu; rehabilitation of the Ports of Kasenyi (DRC) and Ntoroko (Uganda) and finally infrastructure work at the border crossing at Goli (Uganda) Mahagi (DRC). TMEA involvement with DRC consolidate the benefits accrued from similar intervention it has facilitated in East Africa and especially along the regions’ main transport routes including the Northern Corridor from Mombasa linking Uganda, Rwanda, DRC and South Sudan. And Central Corridor, connecting Dar es Salaam port to Rwanda, Burundi, and Eastern DRC by road and lake transport. During a visit to the State House after the signing ceremony the DRC Directeur du Cabinet, at State House Prof. Nehemie Wilondja, stated, “Trade is a way to reduce conflict and unemployment. The agreement will contribute to the training of cross border traders in trade issues, exporting and tapping into regional markets. This will especially benefit our youth.” TMEA Director General David Stanton expressed optimism that the DRC will benefit from ease of trading across borders because of TMEA’s facilitation. He said, “TMEA successfully partnered with governments and businesses in the EAC partner states to drive down the costs of trade along the key transport corridors – which come all the way to the border with DRC. We now want to take this further, by replicating successful initiatives here in DRC with the aim of ensuring that Congolese businesses are competitive and that the benefits of trade along these corridors spill over to DRC.” Evidence from training of border officials and cross border traders especially women has promoted cordial relationships and built trust among the two core players of cross border trade. It has enabled traders to not only identify and tap into local markets efficiently, but their knowledge about regional markets means they submit requirements at the border points without much hassle. Combined, the efforts reduce time taken to transit across the main transport routes, enable businesses to not only diversify their products but also supply market needs thus creating employment opportunities. The new agreement will enhance trade links between the EAC and the DRC.
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EGYPT AS A REVITALISED INVESTMENT DESTINATION Qalaa Holdings, (CCAP.CA on the Egyptian Exchange), an African leader in energy and infrastructure, is a supporter and leading participant in the first round of the Belt & Road Industrial & Commercial Conference (BRICA), an event organised by the Egyptian Businessman’s Association (EBA) and the China Federation of Industrial Economies (CFIE) under the patronage of H.E. Tarek Kabil, Egypt’s Minister of Trade and Industry.
VALE INFORMS THE COMPLETION OF THE EQUITY COAL TRANSACTION WITH MITSUI Vale S.A. (Vale) informs the completion of the equity transaction with Mitsui & Co., Ltd. (Mitsui) associated with the divestment of part of its interest in the Moatize coal mine and in the Nacala Logistics Corridor (NLC). Vale has received US$733 million out of a total of approximately US$770 million related to this equity transaction. Mitsui will pay the remaining amount upon the closure of the project finance. Vale reaffirms the strategic importance of the partnership with Mitsui and its confidence on completing the project financing shortly. A bit of History: Based on the conditions agreed with a diversified mineral resource company, Vale. S.A. as of September 2016, Mitsui & Co., Ltd. implemented the acquisition of 15% equity interest in Vale’s wholly-owned investment subsidiary that holds a 95% equity interest in the Moatize coal mine project in Mozambique, and a 50% equity interest in Vale’s investment subsidiaries that have been promoting the Nacala Corridor rail & port infrastructure project. In September 2016, Mitsui announced a total investment of US$768 million in these projects, including a US$255 million investment in the coal mine, and US$513 million investment in the infrastructure project. Mitsui together with Vale also plan to raise up to US$2.7 billion in funds for the Nacala Corridor through project finance from domestic and foreign financial institutions. The project has already commenced coal export, with the mine possessing large-scale coal reserves with a high level of competitiveness. Through this project, Mitsui is contributing to the stable supply of coal by diversifying supply sources, and helping the growth and development of Mozambique and Malawi, and the African region.
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“One Belt, One Road” is an initiative launched by Chinese President Xi Jinping in September 2013 as a long-term plan to boost economic, trade, and cultural ties between China and more than 65 countries spanning three continents, from Asia to Europe via Southeast Asia, South Asia, Central Asia, West Asia and the Middle East. Qalaa Chairman and Founder, Ahmed Heikal delivered an optimistic message on Egypt as an investment destination and a gateway into Africa at the opening of the Conference. “As an Egyptian investor I’m proud to be here today to deliver two important messages. The first is that Egypt is heading in the right direction in terms of investment climate and the second is that Egypt by virtue of its strategic geographical location is an important hub for investing in and exporting to Africa. For the first time in a long time, Egypt is embarking on a very bold reform program that includes the gradual removal of energy subsidies, the liberalization of foreign exchange, and changes to the legal framework that represents the central core of investing. Additionally, there is also a new sense of fairness that exists within its bureaucracy, which is extremely important,” said Heikal. “I think it’s safe to say that we are cautiously optimistic about Egypt’s future prospects,” explained Heikal. “With the recent government reforms, an improvement in our production of gas and petrol, decreasing imports by virtue of the new exchange rate, increasing exports, an improvement in tourism and a gradual return in FDI, Egypt’s economy is headed in the right direction. Qalaa has always been a believer in Egypt’s competitive advantages and thus we have invested in more than 30 African countries over the years.” The two-day forum “Egypt, Your Gateway to BRICA,” features panel discussions on business and investment opportunities in Egypt and the BRICA countries including, a special focus the Suez Canal Zone, investing in Africa, industrial parks, banking and finance, as well as energy, transportation and logistics, and e-services. Qalaa Holdings Managing Director Karim Sadek, also participated in a panel discussion entitled: “Egypt Your Gateway to Investing in Africa” where he will be sharing insights and lessons learned from his years of experience as a leading Egyptian investor in African infrastructure. Qalaa has over the years invested in crucial sectors on the African continent including the development of African railway infrastructure in Kenya and Uganda, river transport in Sudan and South Sudan, mining and the production of alternative solid fuels in Ethiopia, and cement manufacturing in Sudan. “African governments are now more supportive of private sector investors and are working efficiently to provide the proper regulatory framework and stability required for them to stay the course and continue investing in strategic industries such as power generation and distribution, petroleum refining and transportation mega projects,” said Sadek. “We are still firm believers in Africa’s long-term growth prospects,” he added. “Investors who are willing to be patient and invest in the infrastructure that will deliver sustainable growth in Africa will reap the long-term benefits. Egypt plays a vital role in the development of the African continent, and we expect this role to grow in the future
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on the back of signed agreements between Egypt and African nations. These agreements will have a positive impact on the future of EgyptianAfrican cooperation in strategic sectors of the economy such as energy and agriculture. By virtue of its geographic location and historic inter-continental ties, Egypt is the ideal hub for both investing and exporting to Africa,” he added. On day two of the Conference Khaled Abu Bakr, Chairman of TAQA Arabia, Qalaa’s energy distribution subsidiary chaired a panel on energy where participants engaged in dialogue on various topics including Egypt’s regulatory environment and the future of new and renewable energy in Egypt. Qalaa Holdings’ under-construction megaproject, the Egyptian Refining Company (ERC), a US$3.7 billion Greenfield petroleum refinery in the Greater Cairo area, is an important import substitution play that is set to deliver 4.2 million tonnes of refined products per year to the local market, including 2.3 million tonnes of Euro V diesel representing more than 50% of Egypt’s current imports. ERC has reached overall completion progress of 91% as of September 2016 with all of the heavy/major equipment installed at the construction site.
VEDANTA RESOURCES CHAIRMAN OUTLINES COMMITMENT TO ZAMBIA His excellency president Edgar Chagwa Lungu, and Vedanta Resources chairman, Anil Agrawal, recently met at the State House in Lusaka. The president and the chairman discussed the outlook for the global mining industry and Vedanta’s investment in Konkola Copper Mines plc (KCM), one of Zambia’s largest integrated copper producers. Vedanta’s chairman outlined his 50-year vision for mining in the Copperbelt and his plans for investing another US$1 billion for the next phase of growth. This investment is expected to create 7,000 jobs. He said, “I want KCM to be the largest integrated copper producer in Africa, the pride of Zambia and Vedanta’s hub for copper and cobalt production in Africa.” “The ramp up of Konkola is the centerpiece of my 50-year vision for KCM. It’s technically very challenging, because of the massive amount of water we have to pump out of the mine, but I’m determined to find technical solutions,” Mr Agarwal said. Vedanta’s chairman announced his commitment to further help diversify the economy of the Copperbelt by supporting initiatives in agriculture and technology. KCM currently supports 2,700 families and small-scale farmers through its Sustainable Livelihoods programme. Vedanta’s chairman was accompanied by Tom Albanese, CEO of Vedanta Resources and Steven Din, CEO of KCM.
RAILROAD CLUB OF ANGOLA 30 March, The newly elected Angolan Railroad Board members took office. Dr. Celso Rosas, (CFL) is now the chairman of the general assembly of the club, Dr Jorge Abreu, is the chairman of the board of directors, while for the general secretary, Dr Eleutério Almeida is the president.
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Impression of the proposed Nile SGR Super Bridge. The bridge will be 1km long, axle loading 27.5 tonnes per axle with no pillars in the water.
SGR PROJECT IN UGANDA ON THE RIGHT COURSE Recently graphics comparing the cost of constructing the standard gauge railway in Uganda to Kenya and Rwanda made rounds on social media. The argument was Uganda’s cost is way too high compared to that of Kenya and Rwanda insinuating that for some reason Uganda has unnecessarily inflated costs, which is misleading. According to the Uganda media center - Uganda is in the process of constructing a Standard Gauge Railway network of 1,700km connecting to strategic border points. The eastern route will start from Malaba to Kampala, the northern route will start from Tororo to Gulu to Nimule with a spur to Pakwach and the western route will start from Kampala to Mpondwe at the DRC border through Mityana, Kamwenge and Kasese, and a line from Bihanga southwards to Mirama Hills at the Uganda- Rwanda border through Mbarara and Ntungamo with a spur to the Muko iron ore deposits through Kabale. It is only the eastern route with confirmed costs at US$2.3 billion as
the rest of the route are yet to be assessed for costs. Uganda started with the eastern route because over 90% of Uganda’s goods come through Malaba and Busia. On this route feasibility studies have been completed and a construction contractor has been assigned. When negotiations for the loan are completed, work is expected to start right away and the railway line is expected to be ready for use 42 months after commencement of construction. The other argument, again on social media, is Uganda is lagging behind while Kenya’s SGR is in final stages. All four Northern Corridor Partner States; Uganda, Kenya, Rwanda and South Sudan signed a regional SGR protocol to guide the implementation of the Standard Gauge Railway line so that there will be a seamless connection between countries. Meaning Uganda had to wait for Kenya to reach Malaba to start, in the same way Rwanda will wait for Uganda to reach Mirama Hills and South Sudan Nimule for them to start.
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While many may only be interested in seeing construction going on or trains moving, the work that comes before that is as important. The soils have to be right and the route properly marked for costs to be arrived at. Communities have to be sensitized, compensated and moved which isn’t as easy given their diversity. The project will be careful to minimise disruption of aquatic life and human activities by constructing bridges and viaducts over water bodies and roads. Of the 276km of the eastern route railway line, 53km is in wetlands. This means a lot of money has to be used to ensure that the railway safely passes over the wetland. A bridge of one km is to be constructed over the River Nile and other small rivers and in some places subways have to be constructed so that activities of communities aren’t disrupted. It should be noted that the two countries compared to Uganda don’t have similar features.
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ANOTHER UNTU MEMBER ATTACKED IN METRORAIL YARD “I will shoot you. I will shoot you”. These are the words Vernon Brynard (54), a senior administrative official at Metrorail, heard in the early hours of the morning when an armed robber overpowered him from behind and stuck a firearm in his back. Brynard, a member of the United National Transport Union (UNTU), told the Union that he was walking past the empty security office on the premises of the Passenger Rail Agency of South Africa (Prasa) - operator of Metrorail, Koeberg Depot in the Western Cape when he was attacked. “The robber took my cell phone and my glasses and ran off. I am so grateful that he did not shoot me. My life is worth more than a cell phone,” says Brynard. It is the second time in his 36 years of service with Prasa that he was attacked. Brynard was attacked by a group of men who robbed him off his cell phone 18 months ago at the Kraaifontein Station. Steve Harris, General Secretary of UNTU, says the Union will submit its application to the Western Cape High Court. The Union will ask the Court to order Prasa to implement drastic safety measures on its railway lines. Harris says the war zone in which Prasa employees are forced to work, contributes to their demand for a doubledigit wage increase as from 1 April 2017.
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UNTU’S WORST FEAR ABOUT TRANSNET BECOMES A REALITY The United National Transport Union’s (UNTU) worst fear, for its thousands of members in Transnet, became a reality when Africa’s rail leader offered voluntary severance packages to all its employees due to the dire global economy. Eddie de Klerk, Deputy General Secretary of UNTU, says the Union warned its members in November last year that job losses at Transnet could be on the cards if there were no turnaround in the economy. “Unfortunately, this did not happen. On Monday Transnet informed the leadership of UNTU that the global growth outlook has weakened in recent months and has resulted in a sharp slowdown in the demand on Transnet’s services by other developing countries. At the same time the outlook for the South African economy has also deteriorated. Transnet informed UNTU that it is severely impacted because of the challenging economic conditions with a poor forecast of improvement any time soon,” says De Klerk. According to Transnet the offering of voluntary severance packages to all employees’ forms part of several options the state-owned enterprises is considering, to ensure its long-term sustainability of the business. In terms of a multi-term collective agreement Transnet signed with UNTU earlier, the company cannot force retrenchment until the end of the next financial year, ending 31 March 2018. Therefore, Transnet at this stage can only offer voluntary packages and voluntary early retirement packages. “As the majority Union in Transnet UNTU will never be in favour of severance packages, irrespective of whether it is offered voluntarily or forced. UNTU is of the view that with the grim economic situation as it is; it is in the best interest of our members to remain in employment
for as long as possible. As it is, the Union’s hands are tied if members decide to apply for the voluntary packages that are on the table,” says De Klerk. Although UNTU is empathetic towards Transnet’s situation, the Union is still of the view that this could have been prevented, had there been proper leadership by Public Enterprises Minister Lynne Brown, who oversees Transnet, and Transport Minister Dipuo Peters, who oversees the Passenger Rail Agency of South Africa (PRASA), says De Klerk. “This was never the dream when PRASA was established, because of a Cabinet decision driven by the Legal Succession Act of the South African Transport Services as amended in November 2008. It was supposed to be two booming companies in the South African rail sector. “But the sad reality is that fraud and corruption, mismanagement and irregular expenditures experienced in both companies have added to them struggling. PRASA is the worst affected facing a possible complete collapse. “Where is the leadership from both Ministers? Why did they not ensure that PRASA commissioned Transnet Engineering to manufacture its new urban passenger trains instead of wasting billions to buy them in Spain? Now more billions must be wasted to adjust the platforms to make provision for the smaller trains. This could have been prevented if the Ministers showed true leadership, insight and intervened. Where is the cooperation between the two companies?” says De Klerk. UNTU once again appeals to Government to intervene and save jobs at Transnet, as any job losses will have a further negative impact on the South African economy, which will affect the pocket of each taxpayer.
121,000 TONNES OF COCOA EXPORTED FROM CÔTE D'IVOIRE IN FEBRUARY In February, Bolloré Transport & Logistics exported more than 121,000 tonnes of cocoa in Côte d'Ivoire. An exceptional result in a difficult international context linked to the fall in world cocoa prices. Favourable climatic conditions benefited customers, the main local players in the cocoa industry, including Barry Callebaut, Cargill, Touton Négoce and UNICAO. Bolloré Transport & Logistics regularly invests in logistics for the export of agricultural products and raw materials, especially with the construction of warehouses. To date, 300,000m² are available to customers between the ports of Abidjan and San Pedro.
26 www.railwaysafrica.com
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TAZARA BOARD MAKES STRIDES IN TURNAROUND AMID LABOUR AND FINANCIAL DIFFICULTIES The TAZARA Board of Directors reports that during the first half of the financial year 2016/2017, TAZARA transported 74,122 metric tonnes of freight, being 31% better when compared to the immediate past half year of 2015/2016 (January to June 2016), when 56,589 metric tonnes were transported. However, the performance was only 35.5% of the planned 208,602 metric tonnes in the period under review. In terms of Interstate Passenger Trains, 278,019 passengers were transported during the first half of 2016/2017 compared to 207,090 passengers in the corresponding first half of 2015/2016 being 34.3% higher, surpassing the planned ridership of 275,004 passengers for the period by 1.1%.
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VALE MOZAMBIQUE REPORTS A US$105 MILLION LOSS AT THE CLOSE OF 2016 Vale Mozambique, a subsidiary of Brazilian mining multi-national Vale, reported an operating loss of US$105 million in the final quarter of 2016. While slightly down from losses recorded during the equivalent period in 2015 (US$508 million), the company continues to struggle to turn a profit on their investment in Mozambique’s Moatize coal fields. According to Vale Mozambique’s 2016 Q4 report, the improvement in losses recorded are mainly due to austerity measures implemented at the company, which saw savings of US$344 million, as well as an increase in global coal prices in the last few months of 2016, which increased the company’s turnover by US$140 million. According to Vale’s quarterly report, coal production at the Moatize coal fields has doubled in the past year. Coal exported along the Nacala corridor recorded revenues of US$110 million, while coal transported along the Sena line to the port of Beira posted a loss of US$215 million. Together, the Nacala and Sena lines carried 8.8 million tonnes in 2016, more than double the 41 million tonnes exported in 2015. A total of 8.7 metric tonnes was shipped from ports during the 2016 financial year, in comparison to the 3.7 million tonnes recorded in 2015. It is hoped that with the recent upswing in coal prices and the stabilisation of the global commodity market, profitability of the project will start to rise in the 2017 year.
The Udzungwa Shuttle Train moved 144,555 passengers compared to 108,218 passengers in the corresponding first half of 2015/2016 financial year, surpassing the planned 99,000 passengers for the period under review by 46%. The Dar es Salaam commuter train moved 1,389,590 passengers compared to 841,894 in the corresponding first half of 2015/2016, which is a 65% increase in ridership. The increase in both the number of commuter and shuttle train passengers is attributed to the rising demand from the travelling public due to improvements and consistency in the manner TAZARA has been providing services. The TAZARA board commended management for making improvements to the operator’s track, which has led to improved transit times. Additionally, the board recognised management for enhancing marketing efforts and adhering to service delivery, thereby restoring customer confidence in the authority.
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BOARD OF DIRECTORS OF THE CFL-E.P. GETS VISIT FROM THE NEW COMMANDER OF THE CPPOE The new commander of the CPPOE recently visited the board of directors of the CFL-E.P. João Baptista De Almeida, was recently appointed to occupy the office of the commander of the police for the protection of strategic objectives (Cppoe), and was received by the president of the board of directors of the CFL-E.P. Dr Celso Roses. Dr Celso Roses spoke of certain elements that are dedicated to the destruction of public property, particularly in the stoning of trains, vandalizing the walls and other property belonging to the railroad of Luanda including the theft of fibre cables optics installed along the railway line. “Now more than ever, The CFL needs protection from the police as well as the protection of Chinese citizens who are involved in the construction of various works of our company,” said the PCA of CFL-E.P. In Turn, the commander has given his undertaking to do everything to protect the resources and assets –“I will do everything not to disappoint. I was recently appointed to CPPOE after 39 years in the police force of border guard." Concluded João Baptista De Almeida.
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The board also acknowledged the positive interventions of the shareholding governments by way of injecting working capital into TAZARA, which has led to the stabilisation of industrial services and enabling a steady supply of fuel. However, the board noted with concern that improvements in performance are slow and that a 35.5% achievement of the planned haulage of freight traffic for the halfyear period is insufficient to create financial stability and the revenues being generated were insufficient to sustain operations. Whilst recognising that TAZARA’s operations have been adversely affected by under-capitalisation and needs an injection of funds for resuscitation, the board resolved to seek short-term re-capitalisation from the two shareholding governments to keep TAZARA alive whilst looking for the most suitable and sustainable way of financing the overhaul of the authority in the long-term.
TAZARA Resolves Wage Disputes On 23 January, TAZARA announced that passenger train services had to be suspended as a result of
industrial action on the Zambian side of the line. The strike was initiated as unionised employees were demanding an adjustment for the salary dollar-exchange (parity) rate. Three days later, TAZARA management announced that services were resumed, following a meeting convened by the Ministry of Labour between the Worker’s Union of TAZARA in Zambia (WUTAZ), the Crews and Allied Workers Union of Zambia (CRAWUZ) and TAZARA management. According to a statement issued by TAZARA’s head of public relations, Conrad Simuchile, the parties reached a consensus at the meeting, during which the union agreed to call off the strike and instructed their members to resume their duties. In order to achieve parity between the remunerations of workers in Tanzania and Zambia, salaries are denominated in United States Dollars but paid in local currencies at exchange rates that are agreed upon with the unions periodically. Over the years, local currencies have lost ground against the US Dollar, however, according to TAZARA management, exchange rates could not be adjusted proportionately due to liquidity challenges.
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As a result of meetings between all stakeholders held on 24 and 27 February, TAZARA announced that an agreement had been reached on the parity rate with the trade unions, which came into effect on 1 March. Under the agreement, which forms an addendum to the 20152017 collective agreement between management and labour, TAZARA will upwardly adjust the exchange rates upon which salaries are based, to achieve parity of remunerations between the workers on the Tanzanian and Zambian divisions. Speaking after the agreement was signed, TAZARA’s deputy managing director, Dr Betram Kiswaga, said that: “It is gratifying to note that the atmosphere that existed during the negotiations reflected the desire by both parties to maintain stability in the institution.” He added that: “We have achieved some positive milestones in our operations in the recent past, and it is very encouraging to note that both parties are determined to keep the momentum going through stability and continuity.” In addition to the above agreement, the board resolved to abolish overtime for operations staff and introduce an allowance in place of overtime.
SAFETY CONCERNS ON SOUTH AFRICA’S RAILWAYS As one of the safest and most sustainable modes of public transport, the South African government has highlighted rail as the potential backbone for public transport. As such, the safety of commuters and operational staff is of paramount importance. It is in this light that one has to look with concern at the serious incidents that have occurred on the country’s various lines in the first quarter of 2017.
Gautrain Off The Rails Johannesburg’s Gautrain prides itself on is outstanding safety record and reputation for reliability and excellent customer experience, a reputation that is well earned. It is, therefore, concerning to report that on 16 February, the operator experienced a serious incident on the line when a train approaching the Hatfield station derailed during peak morning operations. According to a preliminary investigation conducted by Bombela shortly after the incident, the low-speed derailment happened subsequent to a power 30 www.railwaysafrica.com
failure to the signalling system. According to Bombela, the signalling system performed according to design, preventing the train from crossing the relevant section at the normal operating speed. “The core purpose of the safety systems built into the Gautrain network is to ensure that a high-speed, catastrophic derailment cannot occur. Analysis of the incident revealed that when the signalling system experienced a power failure, the safety features immediately responded according to design, automatically bringing the train to a full stop. At this point, the train driver is able to intervene and manually operate the train, but at a speed no greater than 30km/h,” the company explained in a media statement following the incident. According to Bombela’s investigation, the derailment has been chalked down to human error. Bombela has reassured commuters that at no stage was the safety of the passengers or staff on board the train at risk. In an effort to understand the underlying cause of the incident, the operator simulated a power failure on the system, verifying that the core safety systems built into the Gautrain system respond according to design. Following Bombela’s investigations into the incident, the Safety Regulator of South Africa (RSR) conducted their own investigation into the incident. On 22 February,
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the safety regulator published their report on the incident, which stated that there were problems with the interlocking. The points - enabling the train to be guided from one track to another - were not completely closed for safe passage of trains (blades not against stock rail). This resulted in a signal being passed at danger, leading to the derailment. The RSR is in the process of instituting a board of inquiry to establish the root cause of the occurrence and to provide recommendations in order to prevent similar incidents in future.
Metrorail Collision Results In More Than 100 Injured In a separate incident, on the evening of 20 February, two Metrorail trains were involved in a head-on collision at the Lynross station, Pretoria. The incident resulted in at least 100 passengers injured, 20 seriously so. The Passenger Rail Agency of South Africa (PRASA) reports that there were no fatalities and the majority of injuries were minor. The Safety Regulator of South Africa (RSR) has conducted a preliminary investigation and found that the primary cause of the collision was due to two trains being manually authorised onto the same railway line. “Shortly before the accident, there was a handover between two train control officers (TCOs). The investigation found that there was no process in place for short hand-overs during shifts. This could have led to miscommunication between the two TCOs, which may have contributed to the accident,” the RSR states. 1.
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“Furthermore, on the day of the incident, there was an ‘absolute working’ on the line between Rosslyn and De Wildt stations, meaning that only one train is allowed to operate in that section at a time,” the RSR explains. Once again, the RSR has assured the public that it is in the process of instituting a board of inquiry to establish the root cause of the occurrence, with the view to providing recommendations that will prevent similar situations arising in the future.
Commuters Hijack Metrorail Train In Kwazulu-Natal In a most unusual incident this quarter, the United National Transport Union (UNTU) reported that a Metrorail train, travelling between Durban and Stanga in Kwazulu-Natal, was hijacked by commuters on 1 March. According to the report, passengers threatened the life of the driver, forcing her to deviate from her scheduled route on Duffs Road towards KwaMashu. The incident has been attributed to a Transnet freight train blocking the line as a result of cable theft disabling the signalling system in the section. Fortunately, the situation was defused by the Rapid Rail Police. PRASA management has committed to increasing security in the region. No injuries were reported following the incident. While the RSR has reported improvements in the overall number of incidents on the country’s railways during the 2016 reporting period¹, it would seem that greater attention needs to be paid to railway safety moving forward.
For a full report on the RSR’s 2016 Railway Safety Report, see Railways AfricaTM Magazine Issue 6:2016.
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ARES AND INFRACON CONSULTING LAUNCH THEIR PARTNERSHIP TO SERVE THE AFRICAN MARKET At an event held in March, ARES Project Management LLC, a subsidiary of ARES Holding Company, and Infracon Consulting (Pty) Ltd, a level 1 B-BBEE majority black female owned Proudly South African Company, launched their strategic partnership to serve the African continent. This collaboration places Infracon Consulting as one of the first black female owned companies to partner with a global giant in project management. Infracon currently provides project controls in core service areas such as estimating; scheduling and planning; quantity surveying; and commercial management and project management consulting, within the construction, mining, oil & gas and power generation sectors, among others. “While Infracon has successfully serviced its clients to date, in terms of our role in project controls, we are now able to sell and distribute the world-class software, ARES PRISM, to deliver a through-the-line service to our clients. The partnership will provide our clients and customers with peace-of-mind and absolute confidence. This allows for the procurement of enterprise project and cost management software as well as the awarding of projects to Infracon Consulting, which includes the addition of professional services,” says Joalinda Asuamah, Infracon Consulting Chairperson and Project Controls Director. She adds that the partnership will allow Infracon, a small to medium enterprise and true empowerment firm, the opportunity to provide world-class project management for mega projects in South Africa and in Africa for the first time. ARES Project Management LLC, a subsidiary of ARES Holding Company, is a world-class provider of integrated project cost management software solutions. Organisations in more than 30 countries rely on PRISM to manage the complete project lifecycle of capital projects to lower costs, mitigate risks and improve overall project performance. ARES PRISM is an enterprise project lifecycle management software solution that supports more than 10,000 users around the world 32 www.railwaysafrica.com
Left to right: Chris Kunneke, ARES Prism; Bongani Mabaso, ARES Prism; Babalwa L Damane, Infracon; Joalinda Asuamah, Infracon; Yaw Yeboah, Infracon; Scott Hyman, ARES Prism.
in the planning, execution, and completion of capital projects. The solution ensures reliable forecasts, cost control and performance measurement. One can integrate and standardise management processes with PRISM modules for estimating, cost management, engineering management, procurement, contracts, field management, and dashboards. “ARES Project Management sought a partnership that would benefit our clients and regional African partners. By selecting Infracon Consulting as our strategic partner in South Africa, we are able to strengthen our commitment to black women-owned businesses and to Broad-Based Black Economic Empowerment (B-BBEE),” says Scott Hyman, Senior Vice President, ARES Project Management, LLC. “Infracon Consulting has a positive reputation and holds a leading position in the market for providing outstanding project controls and project support services, which will now be further enhanced with the addition of ARES PRISM to their service offering.” The support that will be provided by ARES Project Management, a company with more than 25 years in the market, will ensure that clients have access to the best the world has to offer in project management solutions. “ARES is extremely excited about our new partnership as well as our investment in the Infracon Group and the possibilities that this collaboration brings to the African market.” Hyman concludes.
Chief Executive Officer of Infracon Consulting, Yaw Yeboah, states that: “The partnership between ARES and Infracon means revolutionising the way that controls are handled in the African context, not only for major projects but for projects across the line.” Yeboah states. He explains that Africa is currently in a development phase, and therefore lacks maturity in project controls. One of the major obstacles that the continent faces is that projects do not meet time or cost targets. “To achieve our potential, Africa needs to not only meet, but exceed the continent’s infrastructure development needs. ARES Prism is ideally suited to enable this,” Yeboah concludes. Infracon Consulting’s Commercial Director, Babalwa L Damane, states that: “This strategic partnership will be beneficial to both Infracon and ARES, with the aim to increase efforts in essential areas of the business. We believe that we have found a partner with a matched vision who wants more than just a transactional relationship.” She adds that “having worked on mega projects in South Africa which lacked a project management solution that was effective and efficient, I believe that our partnership with ARES PRISM will give more projects access to a perfect project management solution that will add significant value in the execution of projects in the country and region.” Outside of the South African market, there are a number of opportunities in Africa where Infracon Consulting can add
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significant value, as execution of construction projects in developing countries continue to be hampered by schedule delays and cost overruns. While many underlying factors are driving this phenomenon, the lack of efficient project controls plays a significant role. The introduction of management software, aimed at effective project controls solutions, has proved very useful. However, the problem of effectively controlling slippage and cost overruns on projects, particularly in developing countries, still remains largely unresolved. The partnership between ARES PRISM and Infracon Consulting seeks to provide a world-class project solution to address this challenge.
BARLOWORLD EQUIPMENT AND CATERPILLAR LAUNCH A FREE TRAINING PROGRAMME IN MOZAMBIQUE Barloworld Equipment and Caterpillar aim to help address Africa’s shortage of technicians with the launch of their free foundation training programme titled, “Technicians for Africa”, in Tete Province, Mozambique. “We are initially rolling out this programme to four countries in Southern Africa including Mozambique, Angola, Zambia and South Africa,” says Barloworld Equipment CEO, Matimba Mahange. “We know that there is undiscovered talent out there, so we particularly aim to facilitate entry to technical training and careers for disadvantaged students, school leavers and job seekers. We are delighted that this initiative in Mozambique has already attracted 650 participants.” The Technicians for Africa programme provides free online training at foundational levels in both Portuguese and English. All participants who successfully complete the free programme receive a SAQA-approved foundational certification as Cat® Certified Technicians. Anyone with access to a smartphone, tablet or desktop computer can take part in the training, which consists of 18 one-hour modules. This e-learning programme is also available at onsite workstations at the Barloworld Equipment Container Computer Lab.
The partnership has been formed with the objective to Technicians for Africa is a joint initiative between Caterpillar and Barloworld serve the South African and Equipment, one of the world’s leading Caterpillar dealers. other African markets with top class, internationally renowned “We believe this is an opportunity for would-be technicians to learn from the project controls and software best and emerge, armed with a foundational qualification that will assist them capabilities for time, cost, to start a sustainable career,” says Mahange. “This year, Barloworld Equipment procurement and commercial celebrates 90 years of partnership with Caterpillar. Technicians for Africa is a integration amongst other pledge to our company’s collective future and, even more importantly, to the modules.IECHolden_506_ad_RA_180x120_traction-V2.pdf future of1 our continent.” 2016/02/09 1:04 PM
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AFRICA UPDATE The Technicians for Africa programme is designed to cover topics such as the basics of safety as well as the fundamentals of engines, electrical and hydraulic systems. “We have worked with the Mozambican Instituto do Emprego e Formacão Profissional (INEFP) to create a programme that reaches potential talent even in the remotest of rural areas, which aligns with the objectives of the Mozambican Strategic Education Plan,” says Mahange. “We particularly hope that young women will be enthusiastic participants in the Technicians for Africa programme,” Mahange highlights. Barloworld Equipment and Caterpillar believe that the programme will act as a portal to productive and empowering careers, with greater job security for participants. “We also hope that some Technicians for Africa graduates will enjoy the opportunity of participating in Barloworld Equipment’s apprentice programme, ultimately joining us in our mission to deliver innovative solutions for exceptional performance through our people,” says Mahange. Mahange concluded by stating: “We are honoured that the governor of Tete Province, the provincial director of the Ministry of Labour, as well as other representatives of local authorities and of the INEFP, accepted our invitation to celebrate this momentous launch with us. The launch of this innovative training programme is proof of our commitment to improve Africa’s skills base and drive economic development.”
34 www.railwaysafrica.com
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FROM ROAD TO RAIL – THE OPENING OF THE ISANDO DISTRIBUTION CENTRE The minister of trade and Industry, Dr Rob Davies, and ArcelorMittal South Africa chief executive officer, Wim de Klerk, officially opened the Isando Distribution Centre in February, signalling a new era of moving goods from road to rail. The opening was attended by Transnet group chief operating officer, Mlamuli Buthelezi, Barloworld Logistics’ managing executive of Integrated Freight Solutions, Mathys Enslin, Logistics chief executive officer Bongiwe Mbuli and Newlyn Group’s chief executive officer Rajendra Balmakhun. Transnet has been a key partner in the success of the Distribution Centre, through the implementation of its Market Demand Strategy (MDS), whereby Transnet Freight Rail (TFR) actively worked with ArcelorMittal South Africa to design appropriate rail solutions to migrate road volumes to rail. Barloworld Logistics has been appointed by ArcelorMittal South Africa to manage the rail flows from ArcelorMittal South Africa’s production centres, through to arrival at the Isando Distribution Centre. Barloworld will be working with TFR to extract efficiencies from the rail system and lower the costs of logistics. Grindrod Intermodal has been selected to operate the Isando Distribution Centre, owing to their steel handling experience. The Isando Distribution Centre was established in 2016 to migrate ArcelorMittal South Africa’s final product steel dispatches from road to rail, from its production facilities in Newcastle in KwaZulu-Natal and Saldanha in the Western Cape to its customers in Gauteng. As reported by Railways AfricaTM, the first batch of deliveries was received on 1 December 2016. ArcelorMittal South Africa is committed to removing cargo from the road network and transferring it to rail, preserving the road infrastructure and improving the level of safety for road users. It is expected that the initiative will increase the Transnet market share of outbound steel on rail from 13% or 400kt in 2016/17 to 34% or 1MT by 2018. This represents approximately 80% of the ArcelorMittal South Africa Newcastle Works production and 20% of the production at Saldanha Works, the remainder being destined for the export market. The migration of dispatches from road to rail will result in reduced carbon emissions, logistical costs and road congestion, as approximately 42,000 trucks per annum are removed from South African roads. Enhancing customer satisfaction through reliable and efficient deliveries played a key role in ArcelorMittal’s decision to locate the distribution centre in Isando. The initiative will significantly improve ArcelorMittal South Africa’s service delivery to the downstream steel industry through improved lead times. The initiative has also resulted in the creation of 52 new permanent jobs, and it is envisaged that other employment opportunities will be created when the volume throughput increases. Furthermore, the migration of cargo to rail will result in significantly reduced carbon emissions and will lead to a number of related socioeconomic and environmental benefits. The Isando Distribution Centre is a three-year interim solution, with a permanent R140 million centre being constructed at the Grindrod facility in Denver. The establishment of the centre is the first stage in a long-term strategic initiative to migrate all domestic steel dispatches from road to rail. The second phase of the initiative will entail the migration of steel dispatches into sub-Saharan Africa from road to rail, through the establishment of distribution hubs in various locations in the region. In terms of the joint initiative, deliveries from Newcastle and Saldanha will be transported by rail to the Isando facility, from where it will be dispatched by road to end users. Grindrod will provide the necessary warehouse services at the facility leased by Barloworld Logistics from the Newlyn Group. ArcelorMittal South Africa and Barloworld Logistics jointly manage the railway infrastructure.
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MERVYN NAIDOO APPOINTED GROUP CEO OF ACTOM Mervyn Naidoo has been appointed Group CEO of ACTOM with effect from March 1. Naidoo, formerly divisional chief executive officer of ACTOM’s LH Marthinusen division, succeeds Mark Wilson, who has held the Group CEO post since 1996. Wilson, who has been chairman of ACTOM since 2008, retains the chairman position. In announcing Naidoo’s appointment as Group CEO, Wilson also announced the appointment of Andries Tshabalala as deputy chairman with effect from March. Tshabalala previously held the post of Group executive director. “The board and I would like to take this opportunity to wish Mervyn and Andries well with their new responsibilities and look forward to working together in growing and developing the ACTOM Group in the upcoming years,” Wilson commented. Tshabalala’s main responsibilities as deputy chairman will be to assist both Naidoo and himself with strategy, customer liaison and empowerment, Wilson added.
Mervyn Naidoo, newlyappointed CEO of ACTOM.
Naidoo was appointed divisional CEO of LH Marthinusen (LHM) in mid2014. He was previously divisional CEO of Reid & Mitchell (R&M), which he was appointed to in 2012, following ACTOM’s acquisition in early2012 of the former Savcio Group, to which LHM, R&M and a number of other leading businesses operating in the electrical rotating machines and transformers repair markets belonged. At the time of the acquisition, Naidoo was an executive director of Savcio Holdings and the group’s business development executive. An electrical engineer by profession, he has also held senior management posts in several other local electrical rotating machine repair companies during his 25-year career.
Andries Tshabalala, appointed deputy chairman of ACTOM.
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ENGINE MANAGEMENT RECEIVES AN IMPORTANT SHUNT Metric Automotive Engineering has a long and impressive track record remanufacturing heavy diesel engine components across a host of industries. This includes the very demanding mining industry where capital equipment operates according to strict around-theclock load-and-haul cycles and in unforgiving terrain. The company recently introduced this capability to the South African railway industry with its large fleet of locomotives that rely on wellmaintained constant low-speed diesel engines. Importantly, these services are in line with practices accepted by global railway players, who demand that their diesel engines be repaired and remanufactured to the highest possible standards and in accordance with original equipment manufacturers’ (OEM’s) exacting specifications. Andrew Yorke, operations director at Metric Automotive Engineering,
tells Railways AfricaTM that the company entered this market after identifying a need for sophisticated diesel engine component repair and complete engine remanufacturing services. Importantly, they complement national government’s policies that place the company’s railway assets high on the agenda as it executes plans to ensure more people and goods are moved by rail. While these imperatives will take a long time to reach fruition, the skills and expertise of Metric Automotive Engineering will be immediately felt on the fleet of locomotives that are powered by Electro-Motive Diesel engines in the country. South Africa boasts the largest population of these two piston V8, V12 and V16 diesel engine configurations, which were introduced to the country in the 1940s by the then Spoornet, now Transnet Freight Rail (TFR). However, the South African capability that is needed to adequately repair and remanufacture these essential power plants has
not kept pace with the latest diesel engine trends. As such, operators have had to rely on limited domestic capability or incur major costs by seeking the services of global players. In some instances, operators have chosen to forego essential top block repairs due to the unavailability of these services in the country and the significant costs involved in using the expertise of international diesel engine remanufacturers. This has been at the expense of the service life of the diesel engines. By staying abreast of the latest international developments in diesel engine technology and maintaining close affiliations to some of the leading diesel engine OEMs in the field, Metric Automotive Engineering has developed extensive capabilities that can also be successfully deployed in the South African railway industry. One of the company’s traits is its ability to undertake diesel repair and remanufacturing services as close as possible to the original OEM specification. This is due to the large investment it has made in specialised equipment dedicated to servicing the onerous demands of modern diesel engines. “While the basic design of the diesel engine may not have changed much over the years, OEMs have focused on increasing their power outputs. This has introduced significant stresses into the system that compromise areas where there are excess clearances or where mating faces are misaligned or already worn. This has placed significant onus on the modern diesel engine remanufacturing industry to continuously provide sophisticated service offerings,” Yorke says. He reports that there has already been a noticeable interest in the company’s services from local railway operators, who are insisting on a full remanufacturing capability from a South African service provider.
The cylinder block machining centre at Metric Automotive Engineering.
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A significant differentiator is Metric Automotive Engineering’s accurate machining of the main bearing housing serrations and line boring capability of the block’s main bearing housings that mitigates
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“This service is now available locally, and there is no reason why South African railway operators should not be using it when the specification of the OEM demands it. African railway operators should be taking hold of every opportunity to ensure their engines have the best chance of realising their operating hours in notoriously arduous working environments.” - Andrew Yorke, operations director, Metric Automotive Engineering
welding on the final product reducing unnecessary thermal stress. This assists in prolonging the repair life of the engine.
original condition, a service that will significantly reduce the risk that South African railway operators have been willing to shoulder until now.
Yorke says this is an essential service offering it has provided to other industries that are using some of the most advanced diesel engine technologies in their operations.
While there have been railway operators who have decided to forego this service due to its unavailability in the country, Yorke argues that it is considered a global and OEM best practice and, for this reason, it is essential for the optimal operation of a locomotive fleet.
This is complemented by the company’s cylinder head resurfacing and remanufacturing capability that repairs the components as close as possible to the original tolerance to ensure their long-term survival. Crankshafts are repaired using stateof-the-art grinding technology with additional compensators that reduce taper and “chatter”. Metric Automotive Engineering is known for being able to repair power pack seating surfaces to their
“This service is now available locally, and there is no reason why South African railway operators should not be using it when the specification of the OEM demands it. African railway operators should be taking hold of every opportunity to ensure their engines have the best chance of realising their operating hours in notoriously arduous working environments,” he says.
Metric Automotive Engineering has proved the benefits of a comprehensive engine component remanufacturing service across a multitude of industries. With engineering costs accounting for about 20% of the price of a complete engine overhaul, the company’s specialised services have reduced risks for mines, quarries, construction contractors and industrialists. All its customers have benefited from engines that have reached their guaranteed service lives. Clearly, this spending on an essential component of a sound proactive maintenance regime is more than justified, considering the high price of catastrophic engine failure. It is encouraging to learn that the railway industry, a vital link in South Africa’s economy, is following suit.
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2016/02/11 10:44 AM www.railwaysafrica.com 37
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ISMAIL VADI CONFIRMS GAUTRAIN EXPANSION PLANS After six years of operation and close to 80 million passenger trips, the Gauteng Provincial Government (GPG) has demonstrated that the face of public transport can be radically changed. A modern and efficient public transport system such as Gautrain has had a positive impact on the provincial economy, alleviated traffic congestion and has rejuvenated several inner cities in Johannesburg and Tshwane. It has created jobs and helped to re-establish the rail sector in our province. These benefits illustrate the need for rail as being the backbone of public transport in our province. The KPMG study on the wider benefits of Gautrain indicated that between 2006 and 2011, over 122,000 jobs were created by Gautrain. For every R1 spent on Gautrain, R1.72 has been added to the Gauteng economy. Spatially, Gauteng now works much more efficiently and several billion Rands of private sector investment has been channelled into development around Gautrain stations.
Due to growing ridership and peak hour passenger demand, 12 new trainsets are required to respond to demand. With the Gautrain’s 99% availability rate, less than 0.4% fare evasion, and 98% punctuality of its trains, the system has generated strong demand for the expansion of the Gautrain rail system. The GPG believes that the extension of the Gautrain rail network and the modernisation of the PRASA Metrorail system must be supported if railbased public transport is to grow to the required levels to prevent urban sprawl and unsustainable road congestion in the province. The Gautrain Management Agency (GMA) has completed the feasibility study on the extension of the Gautrain rail network. It has been submitted to Provincial and National Treasuries and to major stakeholders that were consulted during the feasibility process. The feasibility study report supports the principle of an extension of the Gautrain rail network and
outlines the preferred routes that should be developed. This is based on the following: • Transformational impact on the Gauteng economy • The modernisation of public transport • Greener transportation solutions for a heathier community • Passenger access and mobility • Improved spatial development • Environmental impact • Increase in local content • Business development • The creation of jobs and poverty alleviation The feasibility study concludes that the extension of the Gautrain rail network will provide significant economic and transport related benefits to the province and the country at large; that it offers value for money, and appropriate risk transfer if procured as a PublicPrivate Partnership (PPP). Demand modelling was conducted to determine transport needs for Gauteng in 2025 and 2037. Through the modelling process it became clear that the ‘cost of doing
nothing’ in the province will lead to major road congestion in 2037, at which stage cars will travel at an average of 15km/h due to doubling of car growth. The feasibility study identified the following main links and stations for Gautrain’s rail network extensions: • A link between Jabulani via Cosmo City and Samrand to Mamelodi, stations include Roodepoort, Little Falls, Fourways, Sunninghill, Olievenhoutsbosch, Irene, Tshwane East and Hazeldean • A link between Sandton and Cosmo City has a station at Randburg • A link between Rhodesfield and Boksburg there will be a station at East Rand Mall and possible link-up with the OR Tambo International Airport Midfield terminal development • A future link from Cosmo City to Lanseria Airport • Due to the magnitude and complexity of the project, it will be split into five phases.
PROJECT UPDATE: KENYA STANDARD GAUGE RAILWAY February marked another watershed moment in the history of the railway transport sector in Kenya. The successful implementation of the Standard Gauge Railway (SGR) project has witnessed the union of the SGR line with the trains that are set to run on it for years to come. The Kenyan Railway Corporation (KRC) received 60 wagons on February 13 and 14. This is the first batch of the 1,620 wagons that will be used for the movement of cargo between Mombasa and Nairobi. The fleet of wagons procured includes Gondola wagons, container flat wagons, covered wagons and KRC receives C70E open wagons at the Port of Mombasa.
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The total network is shown below:
The Gauteng provincial government is aware that a project of this magnitude will require significant funding from various sources. In order to address affordability issues, an engagement with the national government is required. This will be facilitated by the national Department of Transport. The extension project will provide access to private sector funds locally and internationally, as well as opportunities for innovation and world-bestpractice during design, construction, operations and maintenance.
Phase 1 is shown below:
The project will also have significant socioeconomic development benefits, including an estimated 211,000 jobs created in construction; R19 billion procurement spend on black owned entities; increased black ownership of companies in the rail sector; a strong focus on local content in the supply chain, and increased capacity in the rail sector through skills development.
general flat wagons. The wagons can load 70 tonnes and are designed for loading and transporting commodities such as rolled steel products, coal, ore, building materials, and timber. In addition, a consignment of 150 flatbeds arrived in Mombasa Port on 6 March. The track facilitated transportation of locomotives and passenger coaches from Mombasa to Nairobi is underway, with testing of the rolling stock on the line began in March.
Flatbeds arriving at the Port of Mombasa.
Kenya Railways Corporation (KRC) managing director, Atanas Maina, has confirmed that the SGR project is in its final phase of construction and will soon be ready for operations. He stated that the delivery of the locomotives and rolling stock is a critical component in the
implementation of the SGR project and that project implementation is running on schedule. Maina clarified that once operational, there will be both passenger and freight services offered on the line. The passenger line will operate two services, the first being the intercity passenger train, which will provide an express service between Mombasa and Nairobi, stopping only at Mtito Andei. The second service will come in the form of the county train, which will make stops at each of the seven intermediate stations between Mombasa and Nairobi, including Mariakani, Miaseny, Voi, Mtito Andei, Kibwezi, Emali and Athi River.
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AFRICA UPDATE Currently, construction on the Mombasa to Nairobi section of Kenya’s SGR network is 98% complete and will be commissioned in June.
Regional Integration At The Heart Of SGR In East Africa Kenya and Uganda have reached an agreement on the synchronisation of timelines and financing of the construction of the Naivasha to Kampala section of the Standard Gauge Railway (SGR) project. Under the accord, the two countries have resolved that construction on this section should start simultaneously. The agreement was signed by Kenya’s treasury cabinet secretary Henry Rotich; transport cabinet secretary James Macharia; Uganda’s finance minister Matla Kasila; and Uganda’s minister for works and transport Ntege Azuba at the Ministry of Transport, Infrastructure Housing and Urban Development (MOTIHUD) offices in Nairobi. The two countries have approached the Export and Import (EXIM) Bank of China to fund the project, and the respective cabinet secretaries and ministers for finance and transport from Kenya and Uganda will travel
Athi River Intermediate station, Kenya.
RAILWAYS AFRICA to China for discussions on financing modalities for the project. The agreement follows the signing of a bilateral agreement for joint, seamless operation and maintenance of the Mombasa to Kampala SGR line signed in November 2016. Under the accord, Kenya and Uganda have agreed to engage the same operator for the operations, and both countries will permit locomotives and rolling free access into each other’s territories. In Kenya, the railway line will traverse Naivasha, Narok, Bomet, Nyamira, Kisumu, Yala, Mumias, Malaba sides; and Tororo, Butaleja, Namutumba, Iganga, Luuka, Mayuge, Jinja, Buikwe, Mukono, Wakiso and Kampala districts. Uganda’s Railway Master Plan has set out to construct the SGR line in phases, similar to Kenya’s model. The first phase, which will run 273km from Malaba to Kampala, is projected to cost $US2.3 billion. Construction is set to commence later this year and will be executed by China Harbour Engineering Company (CHEC). KRC has signed commercial contracts with China
The control centre at the Nairobi SGR Terminus station will enable communication between the station and the locomotive driver.
Communications Construction Company (CCCC) for the construction of the Nairobi to Malaba section. Currently, the Relocation Action Plan is being implemented before construction commences.
Skills Development On 22 February, KRC held a farewell ceremony for the second group of students leaving to study in China, under the CRBC/ SGR capacity building scholarship programme. Kenyan president Uhuru Kenyatta launched the scholarship programme in March 2016, with the aim of training new railway engineers for the future sustainability of the Standard Gauge Railway (SGR) system. Transport cabinet secretary James Macharia and his principal secretary Nyakera Irungu, as well as CRBC general manager, Yang Jie, and Chinese ambassador to Kenya Liu Xianfa, with Kenya Railways managing director, Atanas Maina, and chairman Jeremiah Kianga were in attendance. The 36 students will undertake a four-year Bachelor’s degree in Railway Engineering at the Beijing Jiaotong University.
The 36 students that are registered to undertake a four-year Bachelor’s degree in Railway Engineering at the Beijing Jiaotong University.
The SGR locomotives and rolling stock on the Tsavo River Super Bridge, during transportation to Nairobi from Mombasa.
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GHANA – BUDGET PRESENTATION In the recent budgetary presentation Ghana’s road, rail and other critical infrastructure development has been made a priority for the 2017-2019 period. Here are a few key highlights related to their rail sector: As part of ECOWAS funding for two rail projects in Ghana will be sought, these include CotonouNiamey-Ouaga-Dori-Abidjan Ring Railway Project and Ouagadougou-Bamako railway project. Creating an integrated, cost effective and seamless transportation systems including a systematic revamp of the rail sector to contribute to the development and the economic growth of the country. Ministry of Railways Development exists to provide railway infrastructure and services as well as associated infrastructure as part of an integrated transport system in order to facilitate the establishment of Ghana as a transport hub within the West African sub-region. The Railway Development and Services Programme will, as part of the measures to revamp the railway system, reconstruct the railway line from Sekondi to Takoradi via Kojokrom consisting of 10.1km double track railway line from Takoradi to Kojokrom and a 4.5km singletrack line to Sekondi, which were partially completed. Two sets of Diesel Multiple Units (DMUs) were procured and commissioned as part of the project. A contract has been signed for the commencement of construction works for a railway line from Tema to Akosombo, stretching over a distance of 85km as part of a multimodal transport system linking the Tema Port to the Buipe Port and neighbouring countries via Akosombo, this will facilitate the transfer of containerised cargo to and from rail. The Western Line starts from Takoradi and terminates at Kumasi having two branch lines namely; Dunkwa to Awaso and Kojokrom to Sekondi, covering a distance of 340km. When the corridor is completed, it will facilitate the haulage of manganese, bauxite, cocoa and other bulk commodities. Feasibility Studies and Front End Engineering Design (FEED) were undertaken on the line. The Ministry will complete the Sekondi to Takoradi via Kojokrom section and continue with the section from Kojokrom to Tarkwa through Nsuta. By this, the operational performance and revenue of Ghana Railway Company Limited (GRCL) will improve to enable the company to wean itself from government support and enhance the performance and competitiveness of the manganese mine located on the corridor. The central spine that stretches from Kumasi to Paga covering a distance of 700km. The corridor is a greenfield project and will be developed in sections. The sections are Kumasi to Buipe and Buipe to Paga. A prefeasibility study was undertaken on the line and during 2017, government will invite developers and source funding for the development.
COMPANY NEWS The Eastern Railway Line starts from Accra to Kumasi with a branch line from Achimota to Tema covering a distance of 330km. When the line becomes operational, it will decongest the port and facilitate the movement of cargo and passengers to Kumasi and its environs. In 2017, the feasibility studies will be finalised and the private sector will be invited to submit proposals. The Central Railway Line spans from Kotoku on the Eastern Line to Huni Valley on the Western Line, a distance of 200km. It has a branch line from Achiase to Kade and there is a plan to undertake a feasibility study to extend it to Kibi. The Ministry will undertake feasibility studies in the major cities of Accra and Kumasi with the aim of developing suburban railway line to facilitate the efficient and cost effective movement of people en masse. Ghana has since 1962, been contemplating the establishment of an integrated aluminium industry, using its natural resources in bauxite, hydro, gas and its existing smelter. The closest that the country was to realising this was in 2008, under President J A Kufuor. President Akufo-Addo has made the rapid and sustainable establishment of an integrated aluminium industry a top economic priority. This is in line with his vision for industrialisation and transformation of the Ghanaian economy, with a deliberate focus on value-add to the country's vast mineral wealth to significantly expand the economy. Many feasibility studies have been completed in this area. The 2017 budget seeks to revive this critical game-changer and has, accordingly, made provisions to see to the implementation of an integrated aluminium industry. The development of the industry will require six main components: Theme: “Sowing the Seeds for Growth and Jobs “ 1. The development of the bauxite mines which are located in Awaso, Nyinahin and Kyebi; 2. The establishment of a refinery at one of the bauxite sights, preferably in Kyebi, because of its closet proximity to Tema, where the Valco smelter is located; 3. The allocation of a dedicated, reliable and affordable source of power supply for the smelter; 4. The development of a railway infrastructure between the mines and Tema; 5. The conversion of the alumina to aluminium at the current Valco plant; and 6. The establishment of an industrial park dedicated to manufacturing aluminium related products to complete the value chain of what is potentially a multibillion local industry. The Railway Investment Management Programme - In line with Government’s vision to systematically revamp the rail sector to contribute to the development and the economic growth of the country, the Ministry will reorganise the institutional framework for the sector. The new Ministry will be structured under the traditional four-line-directorates with additional directorates namely: • Railways Development and Services, and Railway Investment Management. • The Ghana Railway Development Authority will be separated into two institutions, one as the regulator and the other for managing the infrastructure of the sector. 42 www.railwaysafrica.com
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PROGRESS RAIL COMPLETES EMISSIONS TESTING FOR EMD24B, TIER 4 SWITCH LOCOMOTIVE Progress Rail, a Caterpillar company, recently announced it has successfully completed initial emissions testing of its new, repower locomotive – the EMD24B – and has begun the process of certifying the locomotive per the U.S. Environmental Protection Agency’s stringent Tier 4 emissions standards. The EMD24B locomotive will now start the California Air Resources Board’s 3,000-hour in-service verification testing, first with Pacific Harbor Line, Inc. (PHL). Rated at 2,000 horsepower, the EMD24B comes equipped with a Cat® 3512C HD engine and aftertreatment technologies proven to lower emissions. The EMD24B utilises rebuilt EMD-style locomotive components and has been constructed with a remanufactured underframe and cab from an existing EMD GP-40 locomotive. This pre-1973 locomotive core, which was originally developed based on "unregulated" emissions standards, has been remanufactured to meet the latest emissions standards, aligning with Caterpillar and Progress Rail’s sustainability values. “In 2010, PHL took part in one of our largest repower projects to date by modernising an existing locomotive fleet with cleaner burning engines. Today, we’re pleased to continue that legacy of collaborating for cleaner air, through our latest testing efforts for our Tier 4 ready switcher locomotive,” said Progress Rail’s chief executive officer and Caterpillar senior vice president, Billy Ainsworth. “The EMD24B demonstrates our commitment to customers through its reliability and sustainability, while emphasising Caterpillar’s broad engine expertise, with a strong focus on lowering emissions, maintaining fuel efficiency and safety.” The design and manufacture of the EMD24B involved various teams within the company; including Progress Rail’s repower engineering team, employees from the
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RAMBOLL, ARUP & TEC CONSORTIUM WINS 114 MILLION EURO CONSULTANCY CONTRACT FOR THE FEHMARNBELT TUNNEL Ramboll, Arup and TEC have won the tender for client consultancy on the upcoming Fehmarnbelt fixed link between Denmark and Germany. The 18km combined road and rail link will be the longest immersed tunnel in the world. The Ramboll-Arup-TEC consortium is to continue as the principal consultant for Femern A/S, who is responsible for designing and planning the fixed link between Denmark and Germany. The consortium has collaborated on the design of the immersed tunnel since April 2009 and has now won the bid for client consultancy. The Fehmarnbelt tunnel will be one the largest construction projects in Danish history with an overall contract period of 15 years and an estimated value of 114 million Euro.
company’s Patterson, Georgia facility, and its Brazilian subsidiary, Zeit, which provided the locomotive’s control system. The president of PHL, Otis Cliatt II, states that: “PHL is pleased to once again partner with Progress Rail in our ongoing effort to achieve the lowest possible emissions within the ports of Los Angeles and Long Beach. “We are eager to test the EMD24B locomotive, which employs the latest technology and represents a critical step toward meeting the stringent clean-air standards of the California Air Resources Board and the U.S. Environmental Protection Agency (EPA). The EMD24B’s operation on PHL will offer a challenging range of speed, direction and tonnage associated with a busy terminal.”
With more than 30,000 employees between them, the Ramboll-ArupTEC joint venture is one of the leading tunnelling consultants in the world, and their track record includes landmark infrastructure projects such as the Øresund Tunnel in Denmark the City Tunnel in Malmö in Sweden, the Medway Tunnel in England, as well as underground systems in Amsterdam and Copenhagen. Over 70 highly professional employees can look forward to being engaged full-time on the project in its construction phase, contributing approximately one million work hours for the entire joint venture. TEC, the permanent joint venture between Royal HaskoningDHV and Witteveen+Bos, will have a dedicated team on-site to oversee the project’s progress, review the work methods and detailed designs, and assist the client on all other technical matters so as to ensure a safe, durable and sustainable connection between Denmark and Germany. “It is great to have won the client consultancy contract where we could continue to provide our services to such a prestigious project like the Fehmarnbelt link,” says Hans de Wit, Managing Director of Tunnel Engineering Consultants. “The project fits perfectly in our TEC tradition in serving clients in challenging tunnel projects like Øresund Tunnel in Denmark, the Busan Geoje Link in South Korea, the Hong Kong Zhuhai Macao Link in China and the North/South Metro in Amsterdam. With Ramboll and Arup we have an excellent track record in the design phase of this project and I am proud that we can continue this cooperation towards realisation of this mega project”. Hendrik Christensen, Technical Director of Femern A/S, agrees. “We have received a good and qualified offer from the Ramboll-Arup-TEC
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ROYAL HASKONINGDHV LAUNCHES THE NEW DIGITAL ENVIRONMENTAL IMPACT STATEMENT Royal HaskoningDHV has pioneered the way environmental effects of projects are understood by launching the world’s first digital interactive Environmental Impact Statement (EIS). consortium. Choosing Ramboll-Arup-TEC for this project provides us with highly qualified client consultancy, especially when the construction project starts in earnest after the German regulatory approval.” The total length of the tunnel is 18.1km from tunnel mouth to tunnel mouth. This is approximately five times the length of the Øresund Tunnel and three times the length of the Transbay Tube in San Francisco, which is currently the longest immersed tunnel in the world. Motorists will be able to drive at speeds of 110km/h in the tunnel and the journey will take around 10 minutes. For train passengers, the journey will last only seven minutes from coast-to-coast. Contracts have been signed with Femern A/S, the Danish state-owned company responsible for the planning of this international infrastructure project. The tunnel will connect Rødbyhavn in Denmark with Puttgarden in Germany. It will be the world’s longest road and rail tunnel under water, with a four-lane motorway and a two-track railway. The tunnel depth will be more than 40m below sea level at its deepest point. This immersed tunnel solution is an excellent example for innovative design, as it challenges existing tunnel building standards. A pioneering longitudinal ventilation system and state-of-theart safety and security features improve the overall functionality of the construction. The Rambøll-Arup-TEC joint venture has supplied multidisciplinary planning services from preliminary design through to the preparation of tender documentation, including conceptual and illustrative design and will now provide consultancy services and technical support for the construction phase. Building works are expected to start as soon as the German planning approval has been granted. "When it comes to building the world’s longest immersed tunnel, quality should be 'best in class' and we have no doubt that this is what our consultants will deliver. Their role will be to advise and challenge, so that we achieve the best possible solutions.” — Henrik Christensen, Technical Director, Femern A/S. “We are pleased to continue working on the world's longest immersed tunnel of its kind, for which our involvement commenced in 2009. Arup has a great global tradition in large infrastructure projects, and in Denmark specifically, on the Oresund Link to Sweden and now this landmark tunnel to Germany.” — Sandra Akmansoy, Director, Arup Denmark. 44 www.railwaysafrica.com
The new EIS uses accessible, interactive visuals to revolutionise the way the results of an Environmental Impact Assessment are interpreted and shared between all project partners; saving valuable time, accelerating decision-making and advancing stakeholder engagement. Environmental Impact Assessment is required to ensure that the environmental effects of major projects and development proposals are fully investigated and taken into account before decisions are made on whether they should proceed. These results must be outlined in an EIS. Where previously an EIS used text to explain the nature of the issue and what the future situation will look like, it is now replaced by easy to understand visuals and videos that clearly outline the assessment’s findings. Paul Eijssen, strategic advisor for Environmental Impact Assessment (EIA) and a creator of the digital EIS at Royal HaskoningDHV said, “responding to the increasing demand for digitisation and transparency, Royal HaskoningDHV is leading the way in which all data surrounding the impact of a project on the environment is interpreted. The traditional manner of reporting an Environmental Impact Assessment was out-dated and I knew we needed to innovate and change to ensure that the EIS will continue to have relevance and impact in our collective decision making processes.” “The new digital environmental impact statement is visualised via clickable maps and simple to understand tables and its unique interactive capability gives users the opportunity to walk through the virtual landscape and experience how the project will look once it is finished. This will accelerate decision making, enhance transparency and create greater stakeholder engagement.” Developed in collaboration with the Dutch Ministry of Infrastructure and Environment, the digital EIS has also received positive advice from the Netherlands Commission for Environmental Assessment, in recognition of the major step this presents in making impact statements more accessible, thereby creating opportunities for greater stakeholder engagement.
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