ORE LINE: Capacity Expansion

PRESENTATION to the Railway & Harbour Engineering Division of SAICE on 11 September 2007
Willem Kuys

Content
History International Iron Ore Trade Design Parameters Broad plan

Infrastructure Distributed Power Locomotives Wagons Power Sipply Signalling

Volume and Capacity Build-up

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History
The 861 kilometre line was built by Iscor and opened in 1976 with a capacity of 17,5 mtpa The line has 10 crossing loops for train crossings spaced 80-90 kilometres apart Spoornet took over the line 1977 as a 15 year run-out project Idea was that line would revert back to Iscor after 15 years.

Assmang started exporting iron ore over the Ore line from Beeshoek (70
km south of Sishen) in 1978

The capacity of the line was increased in 2002/03 by installing

intermediate loops increasing these to 20

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Beit Bridge Messina

Louis Trichardt Soekmekaar

Ellisras

Ore Line
Arlington Thabazimbi

Vaalwater

Zebediela

Phalaborwa Hoedspruit

Sedibeng Palingpan
Ramatlhabama Mafikeng

Naboomspruit Nylstroom Steelpoort Marble Hall Roossenekal

Middelwit

Northam Pienaarsrivier

Graskop

Kumba Erts
Hotazel Pudimoe Sishen

Assmang Khumani Assmang Beeshoek

Makwassie Ancona Kroonstad Naroegas Upington Kimberley Douglas Belmont Koffiefontein Warrenton Bultfontein Theunissen Winburg Marquard Bloemfontein Sannaspos Ladybrand Maseru Whites Bethlehem Kakamas

Plaston Nelspruit Komatipoort Belfast Kaapmuiden Pretoria Machadodorp Witbank Lichtenburg Barberton Johannesburg Mhlume Gelukplaas Coligny Hawerklip Vermaas Welverdiend Breyten Bethal Lothair Potchefstroom Ermelo Ottosdal Klerksdorp Orkney Vredefort Wolwehoek Standerton Vierfontein Dover Derwent Volksrust Utrecht Hlobane Vryheid Harrismith Ladysmith Bergville Ennersdale Nkwalin i Kranskop Mt Alida Greytown Glenside Empangeni Richards Bay

Vrede

Golela

Warden Newcastle

Kumba (Sishen South)

Prieska Springfontein De Aar Bitterfontein Sakrivier Kootjieskolk Calvinia Hutchinson Noupoort Stormberg Rosmead Schoombee Hofmeyr Graaff-Reinet Beaufort West Cookhouse Porterville Saldanha Prince Alfred Hamlet Atlantis Touwsrivier Oudtshoorn George Avontuur Riversdale Protem Bredasdorp Mosselbaai Knysna Patensie Klipplaat Alicedale Kirkwood Addo Grahamstown Amabele Sterkstroom Queenstown Bethulie Aliwal North Dreunberg

Pietermaritzburg Bruyns Hill Underberg Donnybrook Richmond

Stanger

Durban Matatiele Kokstad Harding Simuma Barkly East Maclear Port Shepstone Franklin Kelso

Umtata

Blaney East London

Worcester

Ngqura TRANSNET freight rail

Cape Town

Franschhoek Stellenbosch

Port Elizabeth

SEABORNE TRADE OF IRON ORE

Growing at 5.3% p.a.

700 650 600 550 500 450 400 350 300

95 96 97 98 99 00 01 02 03 19 19 19 19 19 20 20 20 20

MILLION MT

570 Mt

f 06 20 20

04

(Source: CRU)

20

20

05

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4

MARKET ANALYSIS DEMAND

SEABORNE IRON ORE IMPORTS
1000

2003
900 800

2015

2025

22% 34%

Other

700 600 500 400 300 200 100 0 2003

71% 78% 66%

China

29%

2008

2013

2018

2023

China will become the dominant iron ore importer

(Source: Market Analysis)
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MARKET SHARE OF THE SEABORNE MARKET

6% 1% 2% 3%

Brazil
6% 33%

Australia India South Africa Canada Sweden Mauritania Venezuela Other

5%

8%

36%

(Source: Tex Report, AME)

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IRON ORE LINE LAYOUT

KUMBA/ASSMANG Loading Stations Loading 89 Hours
ERTS

Sishen South

Beeshoek

RAIL OPERATIONS Train operations, Crews, Traffic Control, Perway, Communication, Signalling, Power supply & Infrastructure maintenance

BKN

Rail Distance of 861 km; Single line Train Operations : Loaded throughput 22 hours; Empty thoughput 20 hours

Off Loading 89 Hours

SAPO Tippler, Stacking/Reclaiming

Halfweg Remanning of trains Crew book off To Saldanha Steel

Total System cycle time Time +/- 64 Hours

(Loading to loading)

SALKOR Compiling/De-compiling trains, Shunting, NTG, Wagon & Locomotive maintenance

NPA Berth capacity, Berths, Marine services Shipping patterns SAPO Reclaiming & Ship Loading
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Source: Iron Ore Line Production and Investment teams

New design: Focus areas

Operational re-design Assessment of infrastructure Efficiency improvement New technologies Rail infrastructure establishment New rolling stock

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Operational Re-design
Present infrastructure and train design limited capacity to 37 mtpa Various configurations of train consists and lengths were investigated for the way forward Basic principles of capacity
Distance between crossing loops Speed of trains Train lengths

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Infrastructure Configuration
Single line track layout Crossing loop spacing and train speed determine number of slots Higher throughput volumes: Single line with limited slots
More slots More tonnage per slot

* More crossing loops * Longer trains * Longer crossing loops

Double line
Run more trains

Longer trains with less infrastructure vs Short trains with double line
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Train Configuration
Spoornet solution Longer trains Presently 2 by 108 = 216 wagon trains with headend locomotives Planned 3 by 114 = 342 wagon trains with distributed power 40 slot grid with 28 trains/week 72 slot grid with 44 trains/week Future 3 by 140 = 420 wagon trains with distributed power 72 slot grid with 44 trains per week Or 40 loops with 2 by 114 = 228 wagon trains
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Even loops All loops

All loops

11

Distributed Power (DP)

Distributed Powered (DP) trains to be deployed Locomotives are distributed through the train

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Distributed Power

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Distributed Power (DP)

Distributed Powered (DP) trains to be deployed Locomotives are distributed through the train Locomotives in train are remote controlled by radio Train forces and train dynamics significatly improved Braking improved, shorter stopping distances Enables longer trains with one crew

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Train Operations
Train unit = 114 wagons with a locomotive attached at each end

Unit
114 wagons

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Train Operations
Train unit = 114 wagons with a locomotive attached at each end Main line train = 3 independent units complete with locomotives Units controlled with DP from crew in leading cab

Unit
114 wagons

Unit
114 wagons

Unit
114 wagons

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Train Operations
Train unit = 114 wagons with a locomotive attached at each end Main line train = 3 independent units complete with locomotives Units controlled with DP from crew in leading cab

Unit
114 wagons

Unit
114 wagons

Unit
114 wagons

Main line train can run with 1, 2 or 3 units and improves flexibility Main line train decompiled for loading and off loading at terminals Locomotives remained coupled to units at terminals

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Design Parameters

Present Wagons/train Train length Wagon payload Net ton/train Slots per week Distributed power Train loading time 216 2 430 100/85 20 000/ 21 600 28 none 8 hours

47 mtpa 342 3 850 100/85 34 200/ 29 070 28/44 Electric/diesel mixed 8 hours

61/90 mtpa 420 5 020m 100 42 000 44 Electric 6:45 hours

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Changes to increase capacity

Increase the length of ALL loops (odd & even) to accommodate the 342 wagon trains Build new loop (7A) to replace loop 7 Upgrade yard capacity to operate 342 wagon trains in Salkor yard, link line to the port and at loading sidings Install 1:20 crossing at loops to decrease the cycle times on the line Increase energy supply from Eskom to accommodate 9 active locomotives in a sub-section (feeder lines, sub-station, etc)
Build feeder substations Build Eskom transmission lines & substations

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Changes to increase capacity

Change rolling stock maintenance facilities to in-yard maintenance Replace the signaling system with electronic switching Upgrade and new equipment at Saldanha Port and loading sidings Upgrade 1000 85 ton payload wagons to 100 ton Purchase 1070 new 100 ton payload wagons Purchase new electric locomotives Install DP in existing and new locomotives Electric brakes in all electric and some diesel locomotives Repeater stations along railway line to relay DP signals.

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Volume Demand Scenarios

95

85

Opportunity

Customers optimistic scenario

Million ton per Year

75

65

Customer confirmed demand

55

Planned for 41 Mtpa

45

35

25

Jul-05

Jul-06

Jul-07

Jul-08

Jul-09

Jul-10

Jul-11

Jul-12

Jul-13

Jan-06

Jan-07

Jan-08

Jan-09

Jan-10

Jan-11

Jan-12

Jan-13

Months

Jan-14

Jul-14

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Capacity Build-up
75 70 65 60 55 50 45 40 35 30 25

Customers optimistic scenario Customer confirmed demand Planned for 41 Mtpa Maximum Rail Capacity SAPO/NPA Capacity

Million ton per Year

Jul-05

Jul-06

Jul-07

Jul-08

Jul-09

Jan-06

Jan-07

Jan-08

Jan-09

Months
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Jan-10

Jul-10

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Critical Assumptions
Wagon turnaround time from Sishen - 56 hours (currently 64 hours) Wagon turnaround time from Beeshoek - 72 hours (currently 84 hours) Operational efficiency of line 93% Locomotives remain on train during loading Train follow-up time 4 hours 12 mins Load-out rates at loading stations 5400 tonnes/hour Dual tippling of wagons

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Thank you

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