Page 24 - Case Study Annual 2018

LAA Gold Award

Creating new opportunities

through collaboration

Transnet Freight Rail in collaboration with Afrimat worked on the Afrimat Project to provide
a cost-effective loading facility, complying with agreed process time, loading profi les and all
other relevant specifi cations from Transnet and the Rail Safety Regulator.

The challenge The solution
New entrants into the export iron ore market The aim was to reposition Transnet in logistics
have battled to survive and grow in this highly to create new business in South Africa and also
competitive market with limited margins. One address empowerment. Instead of cannibalising
of the major deterrents is the cost associated on existing business, Transnet totally repositioned
with building a capital-intensive loading facility itself by operating in a new business space, which
that would enable a mine to load product onto is fundamentally better for the country in creating
rail wagons. The three established mines have, new businesses.
over time, given limited loading capacity to new By collaborating with Afrimat, Transnet
entrants, but these new entrants have little room to created new opportunities. A loading facility was
grow because of highly competitive pricing. established in Sishen within the Northern Cape
The project objective was to provide a cost- for loading iron ore. Through this venture, Afrimat
eff ective loading facility, complying with agreed secured rail capacity and is connecting with the
process time, loading profi les and all other relevant global markets. Year to date expectations have
specifi cations from Transnet and the Rail Safety exceeded the plan by 108 percent.
Regulator. Development of phase 1 of the load out facility
In order for Transnet to help develop and grow in Sishen yard commenced on 4 October 2017.
new entrants into the iron ore market, loading, Transnet’s project team presented and signed
rail and port capacity had to be made available. off an innovative operating methodology, which
Rail and port capacity are available; however, allowed existing operations to continue without
new entrants don’t have suffi cient access to cost- any disruptions while accommodating a new
eff ective loading facilities to enable growth. service in an extremely constrained environment.

22 The Logistics News Case Study Annual 2018