Swedish Sub-Saharan Africa Railway and Ports Programme Swerig

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Swedish Sub-Saharan Africa Railway and Ports Programme Swerig CONFIDENTIAL FOR INTERNAL USE WITHIN CLIENT COMPANY ONLY SWEDISH SUB-SAHARAN AFRICA RAILWAY AND PORTS PROGRAMME SWERIG November 25th, 2014 Olov Hemström Business Sweden, Johannesburg SOUTH AFRICA IS THE MOST DIVERSIFIED AFRICAN ECNONOMY Diversifies economy with strong companies in all sectors The world´s 3rd biggest mining market Highest ranked of all emerging economies in Ease to do business South Africa, represents about 70% of Africa’s total with about 21 000km of rail network, of which about 1 500km are heavy haul lines. Just over 8 200km of the lines are electrified. In general narrow gauge. Gautrain is built on standard gauge of 1435 mm (4 ft 8.5in) The market is dominated by PRASA TRANSNET Major mining houses BUSINESS SWEDEN 27 NOVEMBER 2014 2 SOUTH AFRICA ARE INVESTING OVER 200 BILLION SEK OVER THE OVER 7 YEARS IN RAILWAY Transnet announced the 'largest-ever loco supply contract in South Africa's history' on March 17. The country's 'single biggest infrastructure investment initiative by a corporate' comprises orders for four companies to supply a total of 1 064 locomotives worth over 30 BN SEK The contract is divided between four suppliers namely CSR Zhuzhou Electric Locomotive is to supply 359 electric locomotives, Bombardier Transportation 240, GE Transportation will supply 233 diesel locomotives and CNR Rolling Stock 232. On the passenger section, Alstom together with Gibela, will supply 600 passenger trains (3600 coaches) to be delivered over a period of 10 years Transnet Engineering, purpose built OEM within Transnet company plans not only the manufacture of new trains but also the refurbish of 800 old loco’s to sell into African countries. Their specific focus will be on improving railroads including intermodal and inter-mine connections, signalling systems, branch lines, rolling stock, rapid-rail, capacity building, provision for universal/disability access, rail manufacturing and commercial facilities, intermodal connectivity, ticketing and communications interfaces at stations. New railway projects and focus include Swazi Rail link; Container projects; Maputo; Waterberg Coal Development; Manganese to Ngqura; Iron Ore line;Coal System including Eskom Road to Rail and SIP2 : Durban-Free State-Gauteng Logistics & Industrial Corridor SOUTH AFRICA IS ONE OF THE WORLD´S KEY RAILWAY MARKETS AT THE TIME BEING BUSINESS SWEDEN 27 NOVEMBER, 2014 3 PIT TO PORT STRATEGY WELL UNDERWAY While on the ports side Transnet will spend 90.6 BN SEK upgrading South Africa’s old ports and creating new ones Saldanha Bay: A Multi Purpose Terminal will be developed to facilitate exports of globally sought-after commodities from the Northern Cape interior Cape Town: Cape Town container demand is expected to quadruple over the next 30 years Port Elizabeth and Ngqura: The ports at Port Elizabeth and Ngqura service the Eastern Cape hinterland and act as a secondary gateway to Gauteng. Ngqura is also well located to optimise maritime transshipment traffic between the east and west coasts of the continent. Two new berths and a proposed new outer basin will help meet increased demand at Ngqura. Durban: This busy port, which connects demandheavy Gauteng with the coast, handles two-thirds of all South African port traffic. Berths at the existing port will be deepened and widened, while a brand-new “dig-out” port will be created at the former Durban airport site in order to meet an anticipated six-fold increase in container traffic The development of phase 1 of the Port is expected to exceed 30 BN SEK is not included in the Transnet capital expenditure plan. Durban port will have increased focus and investment in developing more efficient services and expanding current capacity to meet demand and projected demand Richards Bay and Maputo: A proposed link to the Swaziland rail network will provide additional capacity for general freight exports to Richards Bay and Maputo. The ‘Maputo corridor’ will connect Gauteng, Limpopo and Mpumalanga with the Mozambican capital. OPPORTUNITY FOR SECURITY AND INTERMODAL SOFTWARE, LIFTERS, STACKERS, CONVEYORS, LOADERS, CRANES ETC BUSINESS SWEDEN 27 NOVEMBER, 2014 4 ZAMBIA LANDLOCKED COUNTRY WITH A STRONG GROWTH Zambia is one of the fast growing economies in the world. Stable democracy with a very strong mining industry. Sweden has a very strong position in Zambia Country has seen a decline in railway traffic for many years, it had previously had a concession with last reported statistics are Zambia Railways Limited operated a network of 1062 km of 1067mm gauge, single track of which 848km is the mainline and 214 km is on branch lines or spurs. In 2001, two years before the concession ZRL moved 1.98 million tonnes of traffic. Today that is 667,000 tonnes ZRL had and has a total of 37 locomotives (12 GT ,17 U20C and 8 U15C) and has a total of 2201 wagons of various types. BUSINESS SWEDEN 27 NOVEMBER, 2014 5 RECAPITALISATION OF ZAMBIA RAILWAY LIMITED WILL BE THE MAIN FOCUS ZRL own passenger coaches have become dilapidated and out of service during the concession. Therefore using 28 passenger coaches belonging to Railway Systems of Zambia (RSZ). The Future for Zambia Railways Limited (ZR) 2013-2017 & Beyond Rehabilitation & Reconstruction of Existing Network Process Network Development Programme of the future Zambian Designed Motive Power & Rolling Stock Zambia Railways Limited (ZRL) which operates both rail passenger and freight trains throughout the country and is the most dominating player has secured 806 million SEK to rehabilitate its railway network. This investment into railway will be allocated to a number of specific areas which include; the rehabilitation of 1062 km railroad, procuring of new wagons, inter-mine and light engines work trains, modification of dual braking, real-time freight and ticketing systems, dragging detectors, implementation of procurement software, customer databases, service portals, customer care centres, security surveillance monitors (CCTV), and crew monitoring system. BUSINESS SWEDEN 27 NOVEMBER, 2014 6 TEAM SWEDEN IN THE RAILWAY SECTOR POTENTIAL COLLABORATION PARTNERS Public institutions - Railway systems Government Consulting Benchmark partners suppliers organizations Swedish Transport SWERIG members Grontmij Swedish Ministry of Administration Transport and Bombardier ÅF Consulting (Trafikverket) Infrastructure ABB Vectura Swedish Transport Swedish Foreign Agency Sandvik Affairs SJ (”Swedish PRASA”) Atlas Copco EKN, Swedish Export Credit SJ Cargo (”Swedish Transnet”) Swedfund SL (Stockholm SIDA Municipality public Universities transport) VTI (Research institute) BUSINESS SWEDEN 27 NOVEMBER, 2014 7 AFRICAN RAILWAY PROGRAM GOAL TARGET GROUP Overall goal Ministries Railway operators and consortiums* Increase the export of Swedish products and services Transnet, PRASA and Gautrain That Swedish companies are seen as supporters in Zambia Railway Limited and Northwest Rail Company the development of sustainable transport structure Limited, TAZARA that will further enhance the African economies Intermodal transports growth. Operators key-end customer with focus on mining Project goal houses and major freight users (logistic managers) Aims to attract, secure and emphasise the strength Railway manufactures and local suppliers and innovativeness of Sweden’s railway companies to railway operators, financiers, OEM’s, regulators and Bombardier government. Alstom Introduce companies to customers and potential corporation partners. GE Share knowledge on sustainable railway and port CNR/CSR infrastructure, including efficiency, safety and life cycle Partners (South Africa Railway Association partners) cost optimisation. Port operators and their authorities. Financiers, African Development Bank, Development Bank of Southern Africa , World Bank BUSINESS SWEDEN 27 NOVEMBER, 2014 8 SOUTH AFRICA AND ZAMBIA THE FIRST COUNTRIES TO APPROACH 2014 2015 March Prepare Follow up and Pre-study Event South Africa delegation next step Prepare Follow up and Pre-study Event Zambia delegation next step Next country Prepare Pre-study i.e. Ethiopia event * TO BE AGREED UPON BUSINESS SWEDEN 27 NOVEMBER, 2014 9 NEXT STEP Sign up! Compile the delegation Set date March 2-5 alt. March 9-12 BUSINESS SWEDEN 27 NOVEMBER, 2014 10 .
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