VELILE DUBE An estimated R14-billion will be used towards the expansion of iron-ore and steel export facility, the Port of Saldanha
South Africa is the seventh-largest producer of iron-ore and, having also traditionally been the fourth-largest exporter worldwide, it remains well positioned to service global iron-ore demand owing to its well-established infrastructure and an iron-ore logistics corridor.
However, to remain in this position, the country’s rail and port infrastructure capacity needs to be increased in line with future demand.
In light of this situation, South Africa’s State-owned freight transport and handling company, Transnet, through its Market Demand Strategy (MDS), will shift its capital expenditure (capex) between now and 2020 from sustainable expenditure to expansionary investments on rail and port projects across South Africa.
This redirection of capex will see the parastatal invest R33-billion of a total R300-billion in Transnet Port Terminaals (TPT), one of its five operating divisions, to create new capacity for port terminals to meet projected future demand.
Of the R33-billion, an estimated R14-billion will be used for the expansion of the Port of Saldanha.
Saldanha Bay, on South Africa’s West Coast, is the country’s only port dedicated to iron-ore and steel export. Saldanha Bay’s rail link to the Sishen, Kolomela and Khumani iron-ore mines, in the Northern Cape, makes it the gateway for exporting seaborne iron-ore to international customers.
Infrastructure at the bulk terminal at the Port of Saldanha currently comprises two rotary tandem tipplers, four stacker reclaimers, two shiploaders and 25 conveying systems, providing the terminal with the capacity to offload 10 000 t/h onto a ship.
The bulk terminal also has a stockpile capacity of five-million tons.
The terminal volumes at the Port of Saldanha have steadily increased from 48.3-million tons in 2010/11 to 54.6-million tons during 2013/14 and the plan is to increase this to 58.1-million tons during 2014/15.
While early indications reveal that TPT will be required to ramp up to between 72-million and 74-million tons within the current MDS cycle, the channel capacity could eventually increase to more than 80-million tons beyond the 2020 financial year, should industry demand it, says TPT Western Cape operations GM Velile Dube.
He notes that, after 2020, investments in asset midlife refurbishments will be undertaken.
An example of such refurbishment is the third tippler installation and the refurbishment of Tippler 1, explains Dube.
Investments are also planned for the refurbishment of other terminal equipment, such as stacker reclaimers and ship loaders that will become due for their midlife refurbishment in time to prevent unplanned breakdowns and equipment failures.
Emerging Players to Benefit
Investments are also earmarked for the Multipurpose Terminal (MPT), situated in the Port of Saldanha Bay, from which emerging iron-ore miners are exporting their smaller parcel sizes. MPT enables emerging iron-ore miners to generate cash flows through export while ramping up mine production to levels which can be accommodated at the bulk terminal.
Meanwhile, TPT will also invest in appropriate terminal equipment in time to meet the customer ramp-up volumes, while remaining efficient in terms of terminal operational and technical efficiencies and flexible with regard to customer requirements.
In order to ensure environmental compliance in the storage and transport of iron-ore, the terminal currently holds a provisional Air Emissions Licence (AEL) to handle 60-million tons of iron-ore a year.
While Dube explains that certain conditions have been put to the terminal for implementation prior to converting the provisional licence to a permanent licence, TPT expects to comply with all the set conditions in the early part of 2015.
Once the permanent AEL has been received, TPT will proceed with a request to increase the limits of the AEL in line with the expansion plans for the terminal.