1. RAILROAD Association at 7 th Zimbabwe Mining and Infrastructure Indaba 2015 RRA CEO: GG Zimba

2. Freight and Passenger Services Focus on Rail Infrastructure in the Region Critical, Capacity and Competitiveness The Reality Check

3. RAILROAD Association of South Africa CONTENT 1. Introduction 2. Railroad Capacity-SSA 3. Rail Utilization drivers 4. The Corridor operating plan 5. The Reality Check & 6. The imagined final state Rail must be Competitive and provide Economic & Social Returns

4. RAILROAD Association of South Africa Introduction The RRA was founded in October 2000 representing Rail Private Service and Product suppliers ; Operators & Govt. entities Vision Movement of freight & Passengers from Road to Rail & Create a sustainable Rail Industry Enhanced vision and strategy made in 2014- Towards SSA

5. One Theme: but the difference Lies in the Details

6. Railroad Capacity in SSA COST, SAFETY & SPEED of Corridor

7. Corridors SSA and Region North- South & East-West

8. Existing Rail Infrastructure

9. Zimbabwe is Central

10. NEPAD Study 2006

11. Railway Potential is Great..BUT DRC 24.4 3 256 17 250 2 250 0.50 14.1 465 2 084 Botswana 20.7 888 10 217 5 620 1.85 18.8 647 1 378 Mozambique 17.4 2 593 30 400 5 685 4.00 13.4 500 1 351 Zimbabwe 14.3 2 583 18 338 8 692 5.30 9.0 2 400 444 Namibia 12.8 2 382 64 808 5 378 2.07 10.8 1 262 1 119 Swaziland 7.5 301 3 800 1 064 3.90 3.6 710 8 Malawi 6.3 789 14 597 2 773 0.40 5.9 75 88 Lesotho 4.3 3 4 955 887 0.00 4.3 0 16

12. China has similar challenges with 80 % of freight on road.

13. Rail Utilization Drivers Infrastructure,Motive Power, Crews and Operating Strategies

14. RAILROAD Association of South Africa Infrastructure challenges 1. State of Disrepair a.Too many national standards b.Lack of finance co-operation model c.Skill sets are few and scattered 2. Gauge and other Barriers a. Corridor -cape gauge b.New mine to Port Standard gauge c. lack of facility, equipment, standardization e.g loading units

15. RAILROAD Association of South Africa Motive Power challenges 1. State of Disrepair a.Too many in disrepair b.Lack of finance co-operation model c.Skill sets are few and scattered d. fuel efficiency 2. Tools and Axle Loads a. Gauge unable to take heavy locos b. New Locos >20 tons for new lines c. Upgrade or design light loco

16. RAILROAD Association of South Africa 3.Infrastructure Barriers a. Suitability of interchange terminals b. Rail gauges c. Capacity of Terminals d. Limited access roads to terminals e. Standardized layout of facilities f. Non standard rail track equipment 4. Operational, Logistical & service related a. lack of transparency in supply chain. b. limited flexibility for short term orders (Rail) c. Rail priority on mixed lines given to pax. d. lack of intermodal integration ( Inventory)

17. RAILROAD Association of South Africa 5.F inancial & Economic Barriers a. Expensive intermodal equipment b. Cost of terminals c.High pre and end haulage cost d. Cost effective warehousing 6.Political Barriers a. Harmonized cross border conditions b. National pricing c. Processing procedures

18. RAILROAD Association of South Africa The Corridor Operating Plan a. National must be Corridor b. Common standard training c. Single skilled – must be multi Skilled d. fuel efficiency Operating a. Seamless corridor b. Shared Control centers c. Similar Control Systems c. Highest Standard For Safety

19. RAILROAD Association of South Africa Actions to Best Solutions 1. Id e ntify past, present and future constraints. 2. Investigate the market needs to design capacity requirements. 3.Locate best locations for Intermodal terminals 4.Rationalise layout and design based on Common requirements and standards. 5.Improve road access to inland and sea Point. 6. Re-visit priority rules for Rail.

20. RAILROAD Association of South Africa 7. Benchmark Global practises. 8.Revisit Infrastructure gauge, equipment & services 9.Optimise efficiency of existing infrastructure. 10. Incentives to be provided for intermodal shift to Most suitable mode. 11.Improve data collection and easy of doing business 12. Implement regional policies based on corridors 13.Avoid duplication and contradicting projects. 14.Complete the North-South & East- West missing links. Reduce the Cost of Logistics

21. RAILROAD Association of South Africa KEY EXTERNALITIES 1.Infrastructure Costs- both capital and maintenace 2.Enviromental impact-CO2 3.Congestion costs 4.Safety and Security Best Energy Usage = Rail.

22. COMPETITIVENESS COST, SAFETY & SPEED of Corridor

23. North South Corridor Road Interlinks: 44 Projects 10 647km value US $3.5B

24. The Corridor Operating Plan Assets National Owned, Shared Services and Motive Power. Tailored Rails

25. Rail Utilization Drivers Infrastructure,Motive Power, Crews and Operating Strategies

26. Rail does best for Bulk and Long Distance

27. Continuously Reduce the Cost of Logistics- 2016?

28. The Reality Check Assets National Owned, Shared Services and Motive Power. Tailored Railnetworks

29. The solutions,products and service available in Rail in the Region address: 1. Freight 2. Metro 3. Heavy Haul 4. Light rail 5. People Movers 6. High Speed Passenger

30. 04/09/15 Infrastructure

31. 04/09/15 Rolling Stock

32. 04/09/15 Services

33. RAILROAD Association of South Africa Leverage Regional Strengths Sweat the Assets Learn from the Best & Innovate Thank You