Maputo Corridor Logistics Initiative - MCLI

Maputo Corridor Logistics Initiative
Transnet Freight Rail
October 2008
Alex Masianoga

Maputo Corridor Defined
Beit Bridge
• Joint initiative formed in 2006 to restore capacity and
optimise the efficiency of rail operations on the corridor
Pretoria
Johannesburg
Maputo
• The Governments of the two countries have expressed
Sishen
Richards Bay
Durban
their intent to develop the “Maputo Corridor”
East London
• The Chief Executives of CFM and Transnet freight rail are
Saldanha
Cape Town
Mossel Bay
PE
Coega
committed to this development
• Task teams from both Railway Administrations have been
tasked to give effect to this commitment
• Traffic Increase predicated on shorter transport distance
TFR and CFM Business Model based on:
• TCM traffic consigned to TCM Matola
utilising Transnet Freight Rail locomotives
and general traffic consigned from and to
Komatipoort on the CFM network utilising
CFM Locomotive power.
to Maputo from Gauteng Hub
www.transnet.net 2

Maputo Corridor – Defined
Phalaborwa
Steelport
Nelspruit
Pretoria
Greenview
Ogies
Middelburg
Witbank
Belfast
Kaapmuiden
Kpmatipoort
Ressano Garcia
Moamba
Machava
Maputo
Barberton
Matola
Swaziland
Sentrarand 3kv DC
Diesel
www.transnet.net 3

Maputo Corridor – Business Model
• The business model between Transnet Freight Rail and
CFM currently based on:
• TCM traffic consigned to TCM Matola utilising Transnet
Freight Rail locomotives and general traffic consigned from
and to Komatipoort on the CFM network utilising CFM
Locomotive power.
• The Port of Maputo is a complementary port and not a
competitor port to South-African ports. The Port of Maputo
and its links to the hinterland are an integral part of the
logistical transportation chain of Southern Africa as a whole.
• The Ressano Garcia line is regarded a cost-effective route
from Mpumalanga and certain Gauteng areas for commodities
such as steel, coal, ferrochrome, magnetite, phosphate rock,
cement, granite, citrus and container exports and imports.
• Increased tonnages attained amongst other based on
improved, seamless train operations on the corridor,
appropriately monitored.
www.transnet.net 4

Rail Progress to Date
From
• Historically, all trains interchanged via
the Maputo corridor were vacuum
brake assisted trains.
• Vacuum braked trains are limited to
40 x wagons per train, sub optimising
tonnages conveyed.
• Track infrastructure and Bridge
capacity on the CFM network from
Ressano Garcia to Maputo, restricted
train composition to the utilisation of 2
x 35 class diesel locomotives
• Impact TCM traffic facilitating 30 x
CMR wagons for magnetite and
average 35 wagons for coal and other
traffic only.
Towards
• Air-brake assisted trains allow for increased loading capacity.
• Track infrastructure on the CFM (Ressano Garcia) line to
Maputo was recently refurbished allowing conveyance of 20
ton/axle loads.
• Bridge capacity on the CFM network were reinforced,
facilitating consignment of longer trains hauled by more
locomotives per train.
• Second air-brake test resulted in:
• Increased number of wagons per train to 60 wagons
against 30; and
• Increased payload of 60 tonnes per wagon against
previous average
loads of 54 tons per wagon.
• Increased allocation of CFR wagons for conveyance of coal,
• Investment in off-loading equipment for CMR wagons at TCM
for Magnetite traffic
• CFM injected 10 additional locomotives for conveyance of
general cargo
• CFM contributed rail wagons for the conveyance of sulphur to
Phalaborwa
• Invested in the movement of fuel from Maputo to South –
Africa (25 tank wagons)
www.transnet.net 5

Cargo flows from SA
• Historically, the base flow from South Africa on this corridor consisted
largely of coal.
• This has subsequently been supplemented with the magnetite flows
from Phalaborwa.
• Coal and magnetite currently represent approximately 78% of the
volumes consigned to Maputo.
• Significant growth has however been achieved on other commodities
such as sulphur and fuel consigned from Maputo
www.transnet.net 6

Bi-directional rail cargo flows
Commodity 2007_08 2008_09 (Apr 08 to Sep 08)
Coal (TCM) 762,703 529,896
Magnetite (TCM) 657,717 407,657
Subtotal TCM TRAFFIC 1,420,420 937,553
Gen Cargo:
Containers 17,595 3,227
Cement 17,168 5,956
Chrome 16,387 43,845
Coal EOHP 37,821 5,706
Ferrochrome 179,038 70,287
Iron or steel 6,552 2,759
Maize 42,957 33,733
Copper 6,611
Citrus 4,340 14,897
Granite 7,488
Gypsum 1,460
Sugar 92,496 61,941
Other 6,302 2,644
Subtotal Gen Cargo 434,755 246,818
GRAND TOTAL 1,855,175 1,184,371
www.transnet.net 7

Bi-directional rail cargo flows
General Cargo 2007_08 2008/09 (Apr 08 – Sep 08)
Molasses 38,074
Fuel 46,505 51,411
Fuel (Bots) 770
Urea 7,696 186
Bran Oats 2,220
Bentonite 10,224 5,808
Sulphur (PHW) 15,459 41,000
Sulphur (DRC) 20,653 21,441
Chemicals 535
Poultry 77
GRAND TOTAL 141,601 120,458
www.transnet.net 8

Potential Volumes
Grindrod (TCM – Maputo) Volumes
2008 2009 2010
Coal 1,5 mil mt 1,5 mil mt 3,0 mil mt
Magnetite 1,5 mil mt 2,5 mil mt 3,0 mil mt
• Other major growth areas:
• Coal to Maputo
• Containerised traffic to Maputo
• Copper from the DRC to Maputo
• Manganese from DRC to Maputo
• Chrome and Ferrochrome to Maputo
• Sulphur from Maputo
• Containerised traffic from Maputo
www.transnet.net 9

5. Challenges
• Train Operating Methodology
. Operating of Longer air-brake assisted trains extended to other traffic
• Adequate Capital Investment in Rolling Stock to meet demand
• Investment by Transnet Freight Rail, CFM and other stakeholders (PPP) in additional
wagon capacity
• Rail Capacity to be aligned with terminal capacity and customer demand
• Turnaround time (TAT) of wagons optimising tonnages with limited capacity
• Availability and proper management of auxiliary equipment – tarpaulins, telemeters
• Operational deviations
. Overhead power failure
. Delayed off-loading
. Scheduling and availability of adequate train personnel
• Market fluctuations and commodity Cycles
www.transnet.net 10

GOBA CORRIDOR OPERATIONS
INTRODUCTION
• The Goba Corridor starts from Matsapha in Swaziland, being the heart of industrial
activity in Swaziland, with a number of factories producing goods for export.
• The Goba Corridor leads to Maputo Port for export to overseas markets.
• The rail distance from Matsapha to Maputo is 230 km.
The interchange point is Mlawula in Swaziland, being 13 km from the Mozambique border.
TRAIN OPERATIONS
• Operations conducted i.t.o. a Business Agreement concluded between Swaziland Railway and
Mozambique Railways & Ports (CFM). There is also an Operational Agreement which is an
addendum to the Business Agreement. The Operational Agreement focuses on operational issues,
such as the interchange point and handover procedures. Inspections are done at this interchange
point.
• While CFM is conducting train operations to the interchange station,It has also been agreed that in
the event CFM is not able to operate trains to Mlawula for various reasons, SR would operate the
trains to Maputo using SR equipment and personnel.
• The two railways are working towards full integration of the train service.

COMMODITIES CONSIGNED ON THE GOBA CORRIDOR
The major commodity conveyed has been sugar, however, from April 2007 export containers
are now consigned on this corridor. Tonnages of the two commodities are given below.
2007 2008
Sugar 107,728 106,000 (est. season not finished)
Containers 41,001 24,400 ( up to 08/2008)
Furthermore cement is imported from Maputo via the corridor . The quantities are limited (700
tonnes plus per month).
CORRIDOR MANAGEMENT GROUP
In accordance with the Southern Africa Railways Association (SARA) policies and procedures, SR and CFM
established the Goba Corridor Management Group. This Group meets once every quarter and they
address operational, technical, marketing and safety issues.

LIAISON MEETINGS
• Every quarter SR and CFM Senior Management meet to address strategic issues such
as investment in infrastructure, equipment, and telecommunications.
• The two railways also exchange information on developments taking place within
each railway such as restructuring and the privatization/concessioning of railways.
.
RE-LAUNCH OF THE GOBA CORRIDOR
• On the 20th & 21st August, 2008 SR and
CFM customers and various stakeholders
• participated in the promoting of the
Goba corridor and Maputo Port.
• Maputo Port being the nearest port to
Swaziland, focus is given to the competitive
• advantage based on beneficial transport
costs of export and import goods
compared
• to other ports

Thank you