New rail line will add capacity for RB coal exports

Transnet and Swaziland Railways are set to build a new 146km railway line between the two countries at an estimated cost of R17 billion. This move will create an additional capacity of 15 million tons on the Richards Bay export coal line by taking over the general freight volumes from the existing coal export line, said Brian Molefe, chief executive of Transnet. “This line will address the major congestion we are experiencing on the coal line in the Ermelo region and allow us to grow our volumes on the coal export line,” he said. “Over the past three months Richards Bay has been delivering around 71 million tons of coal. This is unprecedented growth on this line from the 63 million tonnes we were averaging.” Molefe said when the new line between Lothair in Mpumalanga and Sidvokodvo in Swaziland was up and running, activity and capacity in Richards Bay would undoubtedly increase. “There has been a lot of talk of when will we reach the 91-million-tonnes mark. We believe by building this railway line we can achieve that figure and even push it closer to 100 million tonnes.” According to Minister of Public Enterprises Malusi Gigaba, the project marked a significant milestone in regional cooperation. “Both governments are committed to the project while there is also an appetite for funding.” South Africa will carry about R12 billion of the costs while Swaziland will be responsible for about R5 billion. Concurrent to the building of the new 146km railway line will be the revival of existing lines that will connect with the new line, said Mlamuli Buthelezi, chief operating officer and acting chief executive of TFR. “We will revive the existing 108km line from Davel to Lothair, then build the new section from Lothair to Sidvokodvo in Swaziland and then revive the line from there to Richards Bay. We will also do work on the line for 154km from Phuzumoya to Maputo.” With the concept study for the new railway line completed in 2011, various surveys, field investigations and environmental studies will be undertaken in the next few months. Buthelezi said construction was expected to start as soon as 2012 with the line commissioned by 2016. “This is a strategic investment that will benefit the economies of both countries, while unlocking rail capacity and increasing access to ports for cargo owners.”