1. Transnet’s Railway Infrastructure Development
Ekurhuleni Investment Conference
Transnet’s Railway Infrastructure Development
Francois Meyer
05 June 2017

2. Economic Development and Ekurhuleni’s Importance
CONTENTS
Transnet’s Business
Economic Development and Ekurhuleni’s Importance
Demand (Basin Analysis) for Ekurhuleni
Ekurhuleni Rail Developments
Next 30 years
Gauteng Freight Ring (Now & Future)
Terminals
(Now & Future)

3. Transnet’s Business 20,500 Km rail network
8. Saldanha
Bulk (export iron ore),
breakbulk
7. Cape Town
Containers, breakbulk
4. Ngqura
Containers
3. East London
Containers, breakbulk, agri-Bulk, automotives
5. Port Elizabeth
Containers, breakbulk, bulk, automotives
WESTERN CAPE PORTS
EASTERN CAPE PORTS
KZN PORTS
20,500 Km rail network
226 million tons of freight p.a.
4.6 million Container Units (TEUs) p.a.
18 Billion litres of petroleum
1. Richards Bay
Bulk (export coal, magnetite, chrome), breakbulk
2. Durban
Containers, breakbulk,
agri-bulk, automotives
City of Ekurhuleni plays a critical role as a logistics link, destination and hub in South Africa
Mossel Bay
6. Mossel Bay
Breakbulk, Liquid bulk

4. GAUTENG GDP GROWTH – The basis for Freight Transportation Growth
Ekurhuleni
Ekurhuleni
Source: Stats SA and IHS Global Insight, 2016
Mining
Source: StatsSA, GDP Annual and Regional Tables

5. Modelling and Forecasting Demand for Greater Gauteng
There are four traffic types:
Inbound traffic: all the traffic flows originating outside the basin but the destinations being inside the basin;
Outbound traffic: all the flows originating from inside the basin but the destinations being outside the basin;
Transit traffic: all the flows that pass through the basin, not starting or ending only in the basin; and
Basin bound traffic: all the flows/traffic that never leave the basin and flow within the basin only.
Ekurhuleni handles predominantly Transit Freight but also shows significant consumer (inbound) demand.
Production (outbound) demand is disappointingly low.

6. Gauteng Freight Ring
Expected investment for Gauteng Freight Ring upgrades over the next 30 years > R3bn un-escalated
City of Ekurhuleni
The Gautrain Freight Ring in the main rail line that passes through Ekurhuleni to serve rail freight transportation in the region.
Transnet has proposed projects that involve the doubling of the single line sections, signalling upgrade, construction of new links, reconfiguring of train staging facilities, conversion from 3kV DC to 25 kV AC and improving the connectivity of the rail network with existing and proposed intermodal terminals in Gauteng.
Furthermore, a sub-programme aims to provide a freight corridor between Durban and Gauteng that facilitates the movement of traffic around, rather than through, City Deep.
Allows access to key hubs, terminals, South African ports as well as connectivity to the SADC rail network. 
Short Term Development Strategy
Period: 2014 – 2019:
Capacity: 20mtpa to 40mtpa
Pyramid to Sentrarand - Double single track, 3kV DC, CTC signalling
Skansdam to Houtheuwel - Additional block signals - more trains
Donkerhoek to Pienaarspoort  – new cord (Sentrarand to Maputo)
Rosslyn Link – direct link to Freight ring to bypass PRASA operational area
Medium Term Development Strategy
Period: :
Capacity: 40mtpa to 88mtpa
Sentrarand  to Skansdam  - Additional block signals to allow for more trains
Skansdam to Houtheuwel - New double track, 3kV DC, CTC signalling (PRASA bypass)

7. Ekurhuleni Basin Analysis (Freight DEMAND)
All Surface Transport
Ekurhuleni is strategically placed as a transportation link and hub.
Expected growth of all freight transport sectors will drive the need for transportation infrastructure within Ekurhuleni over the next 30 years.
Containers
Rail only Transport
Potential for Container Growth on Rail is significant over the next 30 years.
The need for intermodal hub infrastructure within Ekurhuleni, has been identified as a key requirement for Transnet
Containers

8. Gauteng Freight Terminals
Vaal Logistics
Pretcon
City Deep
Kascon
Tambo Springs
Sentrarand
Westcon
Pyramid
Current terminals
Proposed new terminals
City of Ekurhuleni
Kaalfontein
(automotive)
Three major freight hubs have been identified for development within Ekurhuleni over the next 30 years

9. Container Terminal Development Plan - Gauteng
Gauteng Hubs and Terminals
Container Terminal Development Plan - Gauteng
Sentrarand
Tambo Springs
The expected investment needed for Rail/Road Terminals within Ekurhuleni over the next 30 years = R4 885m un-escalated
Location
ETC (Rm)
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
2035
2036
2037
2038
2039
2040
2041
2042
Tambo Springs Phase 1
623 8 15
300
Tambo Springs Phase 2
203
Tambo Springs Phase 3 65
Sentrarand Phase 1
1 292 20 80
180
315
360
200
137
Sentrarand Phase 2 - 3
705
393
312
Sentrarand Phase 4
1 150
100
350
400
280
Sentrarand Phase 5 - 7
847
142
Pyramid Phase 1
1 084 6 25
250
Pyramid Phase 2 - 8
2 845
Vaalcon Phase 1 - 3
1 686
Westcon Phase 1 - 3
1 998
Total cash flow (Rm)
12 497 14 23
325
320
660
1 215
1 544
454
162
492
793
985
624
FEL-1: Concept study
FEL-2: Feasibility
FEL-3 + Construction

10. Sentrarand – POTENTIAL FOR THE LARGEST INTERMODAL HUB IN AFRICA
The site is located in the to the east of Gauteng close to Bapsfontein and is well positioned to have direct access to the Gauteng Freight Ring connecting to all major centres throughout Southern Africa.
There is sufficient land available for a mega intermodal terminal – mostly in Transnet’s ownership.
The site is located ideally located to service the freight needs of the majority of the Gauteng area being less than 60 km from the main industrial areas around the Province.
Sentrarand is also well placed to interface with the Aerotropolis.
Potential demand for the terminal:
Container terminal (phase 1): TEUs/pa (16 trains/day) by 2028, starting with TEUs/pa
Container terminal (phase 2-8): TEUs/pa (16 trains/day) from 2031 to 2042
The development will increase the number of trains into the Freight Ring and Natcor by 36 trains per day in 2042
The total site area is about 5,600 hectares and the perimeter measures some 38 kilometres. The extent of undeveloped land within the Ring Road is at least 3,000 hectares.

11. TRANSNET ADVANCED MANUFACTURING-A KEY GROWTH AREA
Expanding the scope of Transnet’s manufacturing business
Supply of innovative freight logistic Rolling Stock Products and Services
Transnet Engineering has Workshops and Depots in Germiston and Sentrarand

12. KEY PARTNERSHIPS TO SUPPORT CONNECTIVITY
1. Aerotropolis
2. Railway Infrastructure
Ekurhuleni Focus 1 2 6
6. Advanced Manufacturing
3. Road Partners 5 3 4
5. Construction
4. Terminals and Warehousing