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

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

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

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 Towards SSA

One Theme: but the difference Lies in the Details

Railroad Capacity in SSA COST, SAFETY & SPEED of Corridor

Corridors SSA and Region North- South & East-West

Existing Rail Infrastructure

Zimbabwe is Central

NEPAD Study 2006

Railway Potential is Great..BUT DRC Botswana Mozambique Zimbabwe Namibia Swaziland Malawi Lesotho

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

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

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

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

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)

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

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

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.

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

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.

COMPETITIVENESS COST, SAFETY & SPEED of Corridor

North South Corridor Road Interlinks: 44 Projects km value US $3.5B

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

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

Rail does best for Bulk and Long Distance

Continuously Reduce the Cost of Logistics- 2016?

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

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

04/09/15 Infrastructure

04/09/15 Rolling Stock

04/09/15 Services

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