SALDANHA BAY - Transnet Freight Rail (TFR) last week moved its first consignment of iron-ore from a group of emerging producers in the Sishen area, as spare capacity on its 861 km iron-ore line to the Saldanha Bay export terminal became available amid stifled production from the larger producers.

“We’re not getting enough volume from our senior producers, so, with their assistance, we’re adding junior producers' output to our rail capacity,” TFR Iron Ore & Manganese GM Lloyd Tobias told Mining Weekly Online on Tuesday, adding that 22 800 t was shipped.

Facilitated through an agreement between a consortium of emerging miners, TFR, and the iron-ore line’s “anchor clients” − Kumba Iron Ore and Assmang − the junior mining companies would road freight their product to Kumba's Kolomela and Sishen mines, from where they would use the established mines’ loading and rail infrastructure to load their product onto the wagons destined for Saldanha Bay.

Tobias explained that the partnership provided smaller producers with a viable product freight alternative they would otherwise be unable to access.

“As TFR, we can’t simply ‘create’ incremental capacity for these producers, so it’s significant that we can accommodate them using spare capacity on the existing lines,” he said.

Moreover, as these producers were now assured capacity on the iron-ore line, it would be easier for them to secure financing for expansion activities and mine infrastructure development, such as the construction of loading stations and rail sidings.

“As part of TFR’s mandate, it’s important to get these smaller guys into market. We’re trying to assist them as much as possible,” he commented.

While refusing to be drawn on the exact tariffs imposed on the emerging iron-ore players, Tobias said the financial model used for tariff determination for all clients factored in any capital expenditure required for expansion or maintenance activities, as well as variable inputs, including possible rand weakness and energy pricing.

The freight operator was currently advancing feasibility studies on the planned expansion of the iron-ore rail capacity from its current 60-million tons a year to 82.5-million tons a year by 2019.

Expansion plans included the addition of supplementary arrival and departure lines at TFR’s Saldanha Bay-based Salkor Yard, as well as the addition of five loop extensions, 14 maintenance loops and six general freight loops along the length of the line.

“We also plan to develop feeder routes from Upington, De Aar, Hotazel and Postmasburg,” Tobias noted.

TFR was currently operating 17 train sets – comprising 342 iron-ore-bearing wagons – along the heavy-haul line, with each set extending 3.7 km in length. Each set completed around 2.5 round trips a week, taking about 68 hours to complete a full cycle of the line.