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Letsitele Citrus Rail Workshop 2011

Part one: 10 slides Eskom and electricity supply issues. Letsitele Citrus Rail Workshop 2011. Setting the stage. Letsitele Citrus Rail Workshop 2011. Eskom has a 180MVA Substation at Tarentaal (that’s almost midway Tzn to Letsitele)

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Letsitele Citrus Rail Workshop 2011

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  1. Part one: 10 slides Eskom and electricity supply issues Letsitele Citrus Rail Workshop 2011

  2. Setting the stage Letsitele Citrus Rail Workshop 2011

  3. Eskom has a 180MVA Substation at Tarentaal (that’s almost midway Tzn to Letsitele) This equates to an effective capacity of 120MVA called confirmed capacity (redundancy is built in case one transformer falls out). Letsitele Citrus Rail Workshop 2011

  4. Eskom has a 180MVA Substation at Tarentaal (that’s almost midway Tzn to Letsitele) This equates to an effective capacity of 120MVA called confirmed capacity (redundancy is built in case one transformer falls out). MVA = Mega Volt Amps KVA= Kilo volt amps….. Which is the currency you understand in packhouses. Letsitele Citrus Rail Workshop 2011

  5. As Letsitele Citrus Rail Workshop 2011

  6. As Letsitele Citrus Rail Workshop 2011

  7. Eskom has a 180MVA Substation at Tarentaal (that’s almost midway Tzn to Letsitele) This equates to an effective capacity of 120MVA called confirmed capacity (redundancy is built in case one transformer falls out). Tarentaal feeds 66 MVA to Tzaneen and 66MVA to Letsitele. Letsitele Citrus Rail Workshop 2011

  8. 66MVA supplied = 55MVA confirmed. Tzaneen is running over 30MVA and is getting a new 40MVA substation built in this year in Tzn. (by the way, FYI). Letsitele has only 30MVA confirmed from their substation. Already, on hand in the pound are the two new 10MVA transformers which will replace two 5MVA transformers in the 2011 upgrade, due to be completed end October 2011. Letsitele Citrus Rail Workshop 2011

  9. As Letsitele Citrus Rail Workshop 2011

  10. As Letsitele Citrus Rail Workshop 2011

  11. The electricity is supplied in bulk to the municipality of Tzaneen. Tzaneen municipality in turn supply Letsitele and administer the sales, distribution & service of electricity to consumers. Letsitele has not been and option for railhead functionality for the reefer train due to capacity constraints. TFR only has a 50KVA supply transformer on the station. The reefer train requires a supply of 500KVA . For Letsitele to be upgraded, TFR as consumer is required to make application for the upgrade. Letsitele Citrus Rail Workshop 2011

  12. Application is a process not an event. TFR also needs to consider de-commisioning the Tzaneen reefer-rail infrastructure This entails removal of dock lights, overhead lights, plug point supply hardware Letsitele Citrus Rail Workshop 2011

  13. Application is a process not an event. TFR also needs to consider de-commisioning the Tzaneen reefer-rail infrastructure This entails removal of dock lights, overhead lights, plug point supply hardware. Commissioning Letsitele as a siding requires the setting up of infrastructure:- Dock lighting, power points etc Letsitele Citrus Rail Workshop 2011

  14. None of this will be done unless the current infrastructure of Tzaneen facility and 2 reefer train sets is fully utilised. Letsitele Citrus Rail Workshop 2011

  15. None of this will be done unless the current infrastructure of Tzaneen facility and 2 reefer train sets is fully utilised. Letsitele Citrus Rail Workshop 2011

  16. Part 2: Letsitele vs. Tzaneen as railheads 5 slides only The train was conceived >10 years ago to meet requirements from the avocado export community Not citrus Citrus could not bear the cost, avo’s could Letsitele Citrus Rail Workshop 2011

  17. Part 2: Letsitele vs. Tzaneen as railheads In 2008, when the major conference- SAECS Changed port call windows, the shift determined the train must depart on Wednesday, No longer on a Friday. This killed the train as a transport mode for avos Letsitele Citrus Rail Workshop 2011

  18. Part 2: Letsitele vs. Tzaneen as railheads Starting with a few citrus containers “just to use up empty space” in 2007, 2008 saw more citrus used to fill up dead slots on the train. By 2009 there were only one or two avo containers on the train In 2010, there was not even 1 avo container Letsitele Citrus Rail Workshop 2011

  19. Part 2: Letsitele vs. Tzaneen as railheads Tzaneen being the avo capital made it the obvious choice to build up the infrastructure for the train railhead. That requirement is no longer relevant and Tzaneen is 34 kilometers further for cross-haul operations of containers, a difference of some ZAR ±600.oo in tariff/container Letsitele Citrus Rail Workshop 2011

  20. Part 2: Letsitele vs. Tzaneen as railheads Today, as we stand with a citrus only train Letsitele is a logical site for the train railhead. Letsitele Citrus Rail Workshop 2011

  21. Part 3: Container equipment availability 5 slides The train has a legacy of always struggling to accumulate empty equipment in Durban for the return leg to Tzaneen. Letsitele Citrus Rail Workshop 2011

  22. Part 3: Container equipment availability In an ideal world, the train will have a buffer stock of 70+ boxes on the ground up in Tzaneen before the first box is even packed. Each train will arrive with 38 AV boxes, Discharge empty, load full and return to port Letsitele Citrus Rail Workshop 2011

  23. Part 3: Container equipment availability We never had a hope of achieving this consistently Purely because of normal market driven forces. Idle equipment earns no income, Idle equipment is a liability line managers have to answer for! Letsitele Citrus Rail Workshop 2011

  24. Part 3: Container equipment availability Carriers are under pressure to perform and if they can turn a reefer equipment , 5 days idle, limited risk, Why then turn equipment in +14 days with a large unmitigated risk element? It is a no-brainer! Letsitele Citrus Rail Workshop 2011

  25. Part 3: Container equipment availability To create an environment where the risk is mitigated and the reward is realised Lines have to decide who they want to work with and how they will manage the environment. The solution is…… Letsitele Citrus Rail Workshop 2011

  26. Part 3: Container equipment availability Shippers will be required to forecast and commit. Make a firm booking, receive a reference number and take full accountability as merchant haul for the equipment. …and carriers will supply equipment. Letsitele Citrus Rail Workshop 2011

  27. Part 4: Citrus container rail operator • 4 slides • Setting the stage • TFR supplies the train sets – 2 reefer and any amount of ambient sets • Carrier supplier AV reefer equipment • Shipper supplies the cargo • The 3PL operator supplies the cross feed Letsitele Citrus Rail Workshop 2011

  28. Part 4: Citrus container rail operator Up to now this operator has been Progressive Logistics. Letsitele Citrus Rail Workshop 2011

  29. Part 4: Citrus container rail operator • For 2011 there are 5 operators soliciting this business • Progressive Logistics • ThyssenAgrilogistics • Great Force Logistics • Bulk Rail Africa 4PL • East Coast Container depot Letsitele Citrus Rail Workshop 2011

  30. Part 4: Citrus container rail operator The reality is that right now the citrus train does not have a 3PL citrus container rail operator. TFR are following due process and this will be a consultative process. Letsitele Citrus Rail Workshop 2011

  31. Part 5: Citrus container rail capacity 4 slides Currently on two trains sets have full reefer operating support. This is not going to change in the medium term. Only consistent good business usage of both sets will attract interest in growing this to three, four or more reefer sets. Letsitele Citrus Rail Workshop 2011

  32. Part 5: Citrus container rail capacity There are any amount of ambient train sets which can be supplied by TFR. Up to the line capacity of the NATCOR and CAPCOR Letsitele Citrus Rail Workshop 2011

  33. Part 5: Citrus container rail capacity Ambient trains require 40 full wagons. The fruit is loaded ambient and railed ambient to its destination in the port. Only upon placing in the export reefer stack will power be coupled to the equipment for the first time. Letsitele Citrus Rail Workshop 2011

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