LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH MARCH 2011 THE JUNCTION, LETSITELE

27
LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH MARCH 2011 THE JUNCTION, LETSITELE

description

LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH MARCH 2011 THE JUNCTION, LETSITELE. AGENDA INTRODUCTION TRENDS IN ENERGY RESOURCES SESSION 1: CITRUS BREAK-BULK RAIL ACTIVITIES Mitchell Brooke – Break-bulk Rail Project Status Update Nelis van Tonder – TFR Focus on Citrus Transport - PowerPoint PPT Presentation

Transcript of LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH MARCH 2011 THE JUNCTION, LETSITELE

Page 1: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

LETSITELE CITRUS RAIL WORKSHOP

10h30 - 10TH MARCH 2011

THE JUNCTION, LETSITELE

Page 2: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

AGENDA1. INTRODUCTION 2. TRENDS IN ENERGY RESOURCES3. SESSION 1: CITRUS BREAK-BULK RAIL ACTIVITIES

a. Mitchell Brooke – Break-bulk Rail Project Status Updateb. Nelis van Tonder – TFR Focus on Citrus Transportc. Discussionsd. Way Forward

4. LUNCH BREAK: 30 MINUTES5. SESSION 2: CITRUS CONTAINER RAIL ACTIVITIES

1. Mitchell Brooke – Time and Temperature Factors for Reefers Inland Loaded vs. Port Loaded

2. Mitchell Brooke – Polokwane Hub Project Status Update3. Andy Connell – Letsitele Container Train Value Added Services 4. Daleen Endley – Letsitele Container Train Critical Success Factors5. Discussions6. Way Forward

6. EU 24-HOUR RULE - REG EC/1785 of 2006

Page 3: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

AGENDA1. INTRODUCTION

2.TRENDS IN ENERGY RESOURCESa)Electricity Indexb)Basic Diesel Pricec)Transport Costsd)RSA – EU Ave BAF Indicator

Page 4: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

1. Consumers can expect a 300% increase in electricity from 2008 – 2012

2. Likely to add pressure on production, port handling and storage costs

Jan/06

Apr/06

Jul/0

6Oct/

06Ja

n/07Apr/0

7Ju

l/07

Oct/07

Jan/08

Apr/08

Jul/0

8Oct/

08Ja

n/09Apr/0

9Ju

l/09

Oct/09

Jan/10

Apr/10

Jul/1

0Oct/

10Ja

n/11Apr/1

1Ju

l/11

Oct/11

0

50

100

150

200

250

300

350

400

450RSA Electricity Index

PPI - Domestic Electricity

Source: www.statssa.gov.za

Page 5: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

1. Diesel price at the pump >R3.00 – R4.00 per litre above Basic Diesel price

2. Indications that we could expect a ~R2.00 per litre increase to June 2011

3. Data March 2011 – June 2011 is an assumption based on trend

Jan/06

Apr/06

Jul/0

6Oct/

06Ja

n/07Apr/0

7Ju

l/07

Oct/07

Jan/08

Apr/08

Jul/0

8Oct/

08Ja

n/09Apr/0

9Ju

l/09

Oct/09

Jan/10

Apr/10

Jul/1

0Oct/

10Ja

n/11Apr/1

1Ju

l/11

Oct/11

0

200

400

600

800

1,000

1,200

$ 0

$ 20

$ 40

$ 60

$ 80

$ 100

$ 120

$ 140

$ 160

Basic Diesel Price in Relation to US$ Brent Crude & ZAR Price Brent Crude

US$ Ave Brent Crude (Sec. Axis) ZAR Brent Crude rpb (Prim. Axis)Basic Diesel Price cpl Ave US$ Echange Rate (Cents per $)

ZAR

per

Bar

rel /

Cen

ts p

er L

tr /

Cen

ts p

er U

S$

US$

per

Bar

rel

Source: www.energy.gov-.za

Page 6: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

• By indication, transport costs may increase by 72% over the last 5 years • Fixed cost increased by 52% - Labour cost / Capital Cost• Variable cost increased by 86% - Fuel (100%) / Maintenance (80%) / Tyres (90%)

Feb

May

Aug

Nov

Feb

May

Aug

Nov

Feb

May

Aug

Nov

Feb

May

Aug

Nov

Feb

May

Aug

Nov

Feb

May

Aug

Nov

2006 2007 2008 2009 2010 2011

R 0

R 2

R 4

R 6

R 8

R 10

R 12

R 14

2006 Feb; Total Truck CPK; 6.72006 May; Total Truck CPK; 7.1

2006 Aug; Total Truck CPK; 7.72006 Nov; Total Truck CPK; 7.4

2007 Feb; Total Truck CPK; 7.82007 May; Total Truck CPK; 8.3

2007 Aug; Total Truck CPK; 8.92007 Nov; Total Truck CPK; 9.1

2008 Feb; Total Truck CPK; 10.1

2008 May; Total Truck CPK; 11.92008 Aug; Total Truck CPK; 12.5

2008 Nov; Total Truck CPK; 11.3

2009 Feb; Total Truck CPK; 9.92009 May; Total Truck CPK; 10.02009 Aug; Total Truck CPK; 9.92009 Nov; Total Truck CPK; 10.02010 Feb; Total Truck CPK; 10.12010 May; Total Truck CPK; 10.72010 Aug; Total Truck CPK; 10.42010 Nov; Total Truck CPK; 10.5

2011 Feb; Total Truck CPK; 11.02011 May; Total Truck CPK; 11.5

2006 Feb; Total Fixed Cost cpk; 2.52006 May; Total Fixed Cost cpk; 2.62006 Aug; Total Fixed Cost cpk; 2.72006 Nov; Total Fixed Cost cpk; 2.72007 Feb; Total Fixed Cost cpk; 2.92007 May; Total Fixed Cost cpk; 2.92007 Aug; Total Fixed Cost cpk; 2.92007 Nov; Total Fixed Cost cpk; 2.92008 Feb; Total Fixed Cost cpk; 3.12008 May; Total Fixed Cost cpk; 3.52008 Aug; Total Fixed Cost cpk; 3.62008 Nov; Total Fixed Cost cpk; 3.52009 Feb; Total Fixed Cost cpk; 3.62009 May; Total Fixed Cost cpk; 3.62009 Aug; Total Fixed Cost cpk; 3.52009 Nov; Total Fixed Cost cpk; 3.42010 Feb; Total Fixed Cost cpk; 3.42010 May; Total Fixed Cost cpk; 3.52010 Aug; Total Fixed Cost cpk; 3.52010 Nov; Total Fixed Cost cpk; 3.62011 Feb; Total Fixed Cost cpk; 3.82011 May; Total Fixed Cost cpk; 3.8

2006 Feb; Total Variable Cost cpk; 4.32006 May; Total Variable Cost cpk; 4.5

2006 Aug; Total Variable Cost cpk; 5.12006 Nov; Total Variable Cost cpk; 4.72007 Feb; Total Variable Cost cpk; 4.9

2007 May; Total Variable Cost cpk; 5.42007 Aug; Total Variable Cost cpk; 6.02007 Nov; Total Variable Cost cpk; 6.2

2008 Feb; Total Variable Cost cpk; 7.0

2008 May; Total Variable Cost cpk; 8.42008 Aug; Total Variable Cost cpk; 9.0

2008 Nov; Total Variable Cost cpk; 8.3

2009 Feb; Total Variable Cost cpk; 6.32009 May; Total Variable Cost cpk; 6.42009 Aug; Total Variable Cost cpk; 6.42009 Nov; Total Variable Cost cpk; 6.52010 Feb; Total Variable Cost cpk; 6.62010 May; Total Variable Cost cpk; 7.12010 Aug; Total Variable Cost cpk; 6.92010 Nov; Total Variable Cost cpk; 6.9

2011 Feb; Total Variable Cost cpk; 7.2

2011 May; Total Variable Cost cpk; 8.0

Total Truck CPK Total Fixed Cost cpk Total Variable Cost cpk

Rand

per

Kilo

met

er

www.fleetwatch.co.zaTruck Operating Cost Trends

Page 7: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

Feb

May

Aug

Nov

Feb

May

Aug

Nov

Feb

May

Aug

Nov

Feb

May

Aug

Nov

Feb

May

Aug

Nov

Feb

May

Aug

Nov

2006 2007 2008 2009 2010 2011

R 0

R 1

R 2

R 3

R 4

R 5

R 6

R 7

R 8

R 9

R 10

2006 Feb; Total Variable Cost cpk; 4.3

2006 May; Total Variable Cost cpk; 4.5

2006 Aug; Total Variable Cost cpk; 5.12006 Nov; Total Variable Cost cpk;

4.72007 Feb; Total Variable Cost cpk; 4.9

2007 May; Total Variable Cost cpk; 5.4

2007 Aug; Total Variable Cost cpk; 6.0

2007 Nov; Total Variable Cost cpk; 6.2

2008 Feb; Total Variable Cost cpk; 7.0

2008 May; Total Variable Cost cpk; 8.4

2008 Aug; Total Variable Cost cpk; 9.0

2008 Nov; Total Variable Cost cpk; 8.3

2009 Feb; Total Variable Cost cpk; 6.32009 May; Total Variable Cost cpk;

6.42009 Aug; Total Variable Cost cpk;

6.42009 Nov; Total Variable Cost cpk;

6.52010 Feb; Total Variable Cost cpk; 6.6

2010 May; Total Variable Cost cpk; 7.12010 Aug; Total Variable Cost cpk;

6.92010 Nov; Total Variable Cost cpk;

6.92011 Feb; Total Variable Cost cpk; 7.2

2011 May; Total Variable Cost cpk; 8.0

2006 Feb; Fuel cpk; 2.82006 May; Fuel cpk; 3.0

2006 Aug; Fuel cpk; 3.52006 Nov; Fuel cpk; 3.22007 Feb; Fuel cpk; 3.1

2007 May; Fuel cpk; 3.52007 Aug; Fuel cpk; 3.72007 Nov; Fuel cpk; 3.8

2008 Feb; Fuel cpk; 4.5

2008 May; Fuel cpk; 5.8

2008 Aug; Fuel cpk; 6.3

2008 Nov; Fuel cpk; 5.7

2009 Feb; Fuel cpk; 3.72009 May; Fuel cpk; 3.82009 Aug; Fuel cpk; 3.82009 Nov; Fuel cpk; 3.92010 Feb; Fuel cpk; 4.02010 May; Fuel cpk; 4.5

2010 Aug; Fuel cpk; 4.22010 Nov; Fuel cpk; 4.32011 Feb; Fuel cpk; 4.5

2011 May; Fuel cpk; 5.0

2006 Feb; Tyre cpk; 0.32006 May; Tyre cpk; 0.32006 Aug; Tyre cpk; 0.32006 Nov; Tyre cpk; 0.32007 Feb; Tyre cpk; 0.32007 May; Tyre cpk; 0.32007 Aug; Tyre cpk; 0.42007 Nov; Tyre cpk; 0.42008 Feb; Tyre cpk; 0.42008 May; Tyre cpk; 0.42008 Aug; Tyre cpk; 0.42008 Nov; Tyre cpk; 0.42009 Feb; Tyre cpk; 0.42009 May; Tyre cpk; 0.42009 Aug; Tyre cpk; 0.42009 Nov; Tyre cpk; 0.52010 Feb; Tyre cpk; 0.52010 May; Tyre cpk; 0.52010 Aug; Tyre cpk; 0.52010 Nov; Tyre cpk; 0.52011 Feb; Tyre cpk; 0.52011 May; Tyre cpk; 0.5

2006 Feb; Maintenance cpk; 1.02006 May; Maintenance cpk; 1.02006 Aug; Maintenance cpk; 1.02006 Nov; Maintenance cpk; 1.02007 Feb; Maintenance cpk; 1.32007 May; Maintenance cpk; 1.32007 Aug; Maintenance cpk; 1.32007 Nov; Maintenance cpk; 1.32008 Feb; Maintenance cpk; 1.42008 May; Maintenance cpk; 1.52008 Aug; Maintenance cpk; 1.52008 Nov; Maintenance cpk; 1.42009 Feb; Maintenance cpk; 1.52009 May; Maintenance cpk; 1.52009 Aug; Maintenance cpk; 1.52009 Nov; Maintenance cpk; 1.52010 Feb; Maintenance cpk; 1.52010 May; Maintenance cpk; 1.52010 Aug; Maintenance cpk; 1.52010 Nov; Maintenance cpk; 1.52011 Feb; Maintenance cpk; 1.52011 May; Maintenance cpk; 1.6

Total Variable Cost cpk Fuel cpk Tyre cpk Maintenance cpk

Rand

per

Kilo

met

er

www.fleetwatch.co.zaTruck Operating Cost Trends

Influence on Variable Transport Costs

• By indication, transport costs may increase by 72% over the last 5 years • Fixed cost increased by 52% - Labour cost / Capital Cost• Variable cost increased by 86% - Fuel (100%) / Maintenance (80%) / Tyres (90%)

Page 8: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

• The average BAF US$ pp is estimated to peak at the 2008 levels.• The strengthening of the ZAR / US$ has deflated the BAF increase in ZAR terms.• Ave BAF could reach R800 pp by July 2011.

Jan/06

Apr/06

Jul/06

Oct/06

Jan/07

Apr/07

Jul/07

Oct/07

Jan/08

Apr/08

Jul/08

Oct/08

Jan/09

Apr/09

Jul/09

Oct/09

Jan/10

Apr/10

Jul/10

Oct/10

Jan/11

Apr/11

Jul/11

Oct/11

0

100

200

300

400

500

600

700

800

0

200

400

600

800

1,000

1,200

Ave RTM - SIN Bunker Price US$ per MT (Prim. Axis) Ave BAF EU - US$ per STD Pallet

Ave US$ Echange Rate (Cents per $) Ave BAF EU - ZAR per STD Pallet

Source: Furnesswithy (UK) / Maersk / Ocean Shipping Ltd.

Relationship Between EU Freight Rates, Bunkers & BAF (Ave Reefer & Container)C

ost U

S$ p

er P

alle

t / C

ost U

S$ p

er M

T

Cen

ts p

er U

S$ /

ZAR

per

STD

Pal

let E

q

Page 9: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

AGENDA1. INTRODUCTION 2. TRENDS IN ENERGY RESOURCES

3.SESSION 1: CITRUS BREAK-BULK RAIL ACTIVITIESa.Mitchell Brooke – Break-bulk Rail Project

Status Updateb. Nelis van Tonder – TFR Focus on Citrus Transportc. Discussionsd. Way Forward

Page 10: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

Rail Characteristics1. Rail transportation requires homogenous (Same) types of cargo

transported in bulk volume over great distances to be viable and feasible.2. Requires wagons lots of ~40 wagons from point of loading to point of off-

loading to be efficiency.3. Where rail lines are not accessed directly, there is a dependence of road

transport to deliver cargo to rail sidings – Adds pressure on the rail rate. O Type – 24 Standard Height Pallets Pallet Friendly – 24 High Cube Pallets

Page 11: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

1. Rail transportation requires homogenous types of cargo transported in bulk volume over great distances to be viable and feasible.

2. Northern Limpopo, Letsitele, Hoedspruit and Malelane are bulk rail viable.

Page 12: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

1. 2010 Regional production volume of pallets travelled to ports.2. Areas above 80 million pallet kilometres could be rail friendly.

Zim

babw

e - Z

W

Nor

ther

n Li

mpo

po -

LP

Lets

itele

/ Tz

anee

n - L

P

Hoe

dspr

uit -

LP

M H

all /

Gro

bler

sdal

- M

P

Nel

spru

it - M

P

Mal

elan

e - M

P

Nor

th S

waz

iland

- SZ

Pong

ola

- KZN

Nkw

alin

i Val

ley

- KZN

KZN

Mid

land

s - K

ZN

Fort

Bea

ufor

t - E

C

Sund

ays

Riv

er -

EC

Vaal

harts

Pate

nsie

- EC

Swel

lend

am -

WC

Citr

usda

l - W

C

Kak

amas

- N

P

Durban Port Elizabeth Cape Town

0

20,000,000

40,000,000

60,000,000

80,000,000

100,000,000

120,000,000

140,000,000

160,000,000

180,000,000

200,000,000Citrus Regional Ave Pallet Kilometers

Palle

t KM

's

If we can’t get it right in Letsitele how will rail operate elsewhere?

Page 13: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

Northern Region Production Grouping

1. Northern Limpopo from Letsitele upwards to Zimbabwe produce large Valencia crops

2. Central Limpopo from Letsitele to Hoedspruit and Malelane produce large Grapefruit crops

3. Groblersdal, Marble Hall and Zebidiela produce large Navel and Lemon crops.

Page 14: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 400

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

North Limpopo South Limpopo / East Mpumalanga

Cart

ons

per

Wee

k

Mid season Valencia from

Letsitele northwards to

Zimbabwe

Northern Region Production Volume Overview

Early season Grapefruit from Letsitele, Hoedspruit and

Malelane

Page 15: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 280

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

Letsitele Hoedspruit Malelane

Cart

ons

per

Wee

kNorthern Region Grapefruit Production Overview

Page 16: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 280

2

4

6

8

10

12

0

10000

20000

30000

40000

50000

60000

70000

16; Acc Plts; 0

17; Acc Plts; 2854.55212121212

18; Acc Plts; 10115.6090909091

19; Acc Plts; 18267.4666666667

20; Acc Plts; 26550.9466666667

21; Acc Plts; 35239.5760606061

22; Acc Plts; 43786.2439393939

23; Acc Plts; 51674.5093939394

24; Acc Plts; 57675.8590909091

25; Acc Plts; 62725.183333333326; Acc Plts; 6272527; Acc Plts; 6272528; Acc Plts; 62725Acc Plts; 62725Acc Plts; 62725

Japan GF Plts Acc Plts

Palle

ts p

er W

eek

Palle

ts A

ccum

ulat

ed

Northern Region Grapefruit Rail Volume Overview

Letsitele / Hoedspruit / Malelane to

Durban

50% GF Production for Japan & other

markets

Page 17: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 400

100,000

200,000

300,000

400,000

500,000

600,000

700,000

800,000

900,000

1,000,000

Letsitele Limpopo River

Cart

ons

per

Wee

kNorthern Region Valencia Production Overview

Page 18: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 400

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

90,000

20; Acc VAL Volume; 0

21; Acc VAL Volume; 0

22; Acc VAL Volume; 0

23; Acc VAL Volume; 0

24; Acc VAL Volume; 0

25; Acc VAL Volume; 5,265

26; Acc VAL Volume; 10,212

27; Acc VAL Volume; 16,437

28; Acc VAL Volume; 23,576

29; Acc VAL Volume; 30,519

30; Acc VAL Volume; 37,005

31; Acc VAL Volume; 44,121

32; Acc VAL Volume; 51,469

33; Acc VAL Volume; 58,751

34; Acc VAL Volume; 65,003

35; Acc VAL Volume; 70,856

36; Acc VAL Volume; 76,387

37; Acc VAL Volume; 76,387

38; Acc VAL Volume; 76,387

39; Acc VAL Volume; 76,387

40; Acc VAL Volume; 76,387

VAL Plts 40% Volume Acc VAL Volume

Palle

ts p

er W

eek

Palle

ts A

ccum

ulat

ed

Northern Region Valencia Rail Volume Overview

Letsitele / Polokwane to Durban

30% Val Production

for Russia & other

markets

Page 19: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 360

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

17; Acc Rail Wagons; 11918; Acc Rail Wagons; 421

19; Acc Rail Wagons; 76120; Acc Rail Wagons; 1,106

21; Acc Rail Wagons; 1,46822; Acc Rail Wagons; 1,824

23; Acc Rail Wagons; 2,15324; Acc Rail Wagons; 2,403

25; Acc Rail Wagons; 2,83326; Acc Rail Wagons; 3,03927; Acc Rail Wagons; 3,298

28; Acc Rail Wagons; 3,59629; Acc Rail Wagons; 3,885

30; Acc Rail Wagons; 4,15531; Acc Rail Wagons; 4,452

32; Acc Rail Wagons; 4,75833; Acc Rail Wagons; 5,061

34; Acc Rail Wagons; 5,32235; Acc Rail Wagons; 5,566

36; Acc Rail Wagons; 5,796

17; Acc Plts Total (Sec Axis); 2,855

18; Acc Plts Total (Sec Axis); 10,116

19; Acc Plts Total (Sec Axis); 18,267

20; Acc Plts Total (Sec Axis); 26,551

21; Acc Plts Total (Sec Axis); 35,240

22; Acc Plts Total (Sec Axis); 43,786

23; Acc Plts Total (Sec Axis); 51,675

24; Acc Plts Total (Sec Axis); 57,676

25; Acc Plts Total (Sec Axis); 67,990

26; Acc Plts Total (Sec Axis); 72,936

27; Acc Plts Total (Sec Axis); 79,161

28; Acc Plts Total (Sec Axis); 86,299

29; Acc Plts Total (Sec Axis); 93,242

30; Acc Plts Total (Sec Axis); 99,727

31; Acc Plts Total (Sec Axis); 106,843

32; Acc Plts Total (Sec Axis); 114,190

33; Acc Plts Total (Sec Axis); 121,471

34; Acc Plts Total (Sec Axis); 127,722

35; Acc Plts Total (Sec Axis); 133,575

36; Acc Plts Total (Sec Axis); 139,106

Japan GF Plts VAL 40% Volume Plts Acc Rail WagonsAcc Plts Total (Sec Axis)

Palle

ts p

er W

eek

/ Acc

umul

ated

wag

ons

Accu

mul

ated

pal

lets

Service 1

Northern Region Total Rail Volume Overview Service 2

20% of citrus volume to Durban = 5,500 citrus road trucks off our roads

Page 20: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

Grapefruit Rail Service 1 Wk 17 – 25Valencia Rail Service 2 Wk 26 – 36

Northern Region Break-bulk Rail Overview

Grapefruit 1 Wk 17 -

25

Valencia 2 Wk 25 - 36

Page 21: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

Durban Port Rail Siding Overview

ECS 30km South

Page 22: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

Rail Proposal for LetsitelePrinciple:

a) To rail exporters and agents have to contract capacity at a cold store with a rail siding.

b) There should be more focus on acquiring train lots ~ 40 wagons to these cold stores to ensure better efficiency.

c) FPT / 333 Logistics / 328 Logistics / MFT / ECS.Grapefruit week 17 – 25:

d) Japan Grapefruit to Durban ambient store – rail siding available! (333 Logistics).

e) Japan Grapefruit to MFT.f) Accumulation of Grapefruit to other markets for a specific cold store.

Valencia's week 26 – 36:g) Valencia to Russia (standard pallets) accumulated from packhouses.

• 95% of fruit sent to Russia is loaded at FPT Terminal.h) Accumulation of Valencia’s to other markets for a specific cold store.

Page 23: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

CITRUS RAIL VS ROAD PRICING - CGA Indications 2011

Citrus Production Region

Durban Port by Road - Grapefruit 17kg Cartons Durban Port by Rail - 24 plts Standard 'O' type wagons

Durban Port by Rail - 24 plts High Cube CX Containers

KM to DBN

Rand per KM

Ave. Cost per

Truck Trip

STD 32 plts per Truck

H/C - 28 plts per Truck

Transport packhous

e to rail siding

Rail to port per wagon

Rail to port per

palletIns & Levy Ave. Cost

Transport packhous

e to rail siding

Rail to port per wagon

Rail to port per

palletIns & Levy

Ave. Cost

Letsitele via Letsitele 900 R 18.0 R 16 200 R 506 R 579 R 35 R 10 250 R 427 R 20 R 482 R 35 R 12 000 R 500 R 20 R 555

Savings Potential                   -R 24        -R 24

Hoedspruit via Hoedspruit 850 R 18.0 R 15 300 R 478 R 546 R 35 R 9 250 R 385 R 20 R 440 R 35 R 11 000 R 458 R 20 R 513

Savings Potential                   -R 38        -R 33

Malelane via Komatipoort 680 R 18.0 R 12 240 R 383 R 437 R 35 R 6 250 R 260 R 20 R 315 R 35 R 8 000 R 333 R 20 R 388

Savings Potential                   -R 67        -R 49                               

Citrus Production Region

Durban Port by Road - Valencia 15kg Cartons Durban Port by Rail - 24 plts Standard 'O' type wagons

Durban Port by Rail - 24 plts High Cube CX Containers

KM to DBN

Rand per KM

Ave. Cost per

Truck Trip

STD 28 plts per Truck

H/C - 26 plts per Truck

Transport packhous

e to rail siding

Rail to port per wagon

Rail to port per

palletIns & Levy Ave. Cost

Transport packhous

e to rail siding

Rail to port per wagon

Rail to port per

palletIns & Levy

Ave. Cost

Letsitele via Letsitele 900 R 20.0 R 18 000 R 643 R 692 R 35 R 13 000 R 542 R 20 R 597 R 35 R 14 750 R 615 R 20 R 670

Savings Potential                   -R 46        -R 23Thohoyandou via Polokwane 1050 R 20.0 R 21 000 R 750 R 808 R 170 R 12 600 R 525 R 20 R 715 R 170 R 13 600 R 567 R 20 R 757

Savings Potential                   -R 35        -R 51

Tshipise via Polokwane 1100 R 20.0 R 22 000 R 786 R 846 R 180 R 12 600 R 525 R 20 R 725 R 200 R 13 600 R 567 R 21 R 788

Savings Potential                   -R 61        -R 58

Weipe via Polokwane 1100 R 20.0 R 22 000 R 786 R 846 R 180 R 12 600 R 525 R 20 R 725 R 200 R 13 600 R 567 R 22 R 789

Savings Potential                   -R 61        -R 57

Zimbabwe via Polokwane 1200 R 20.0 R 24 000 R 857 R 923 R 280 R 12 600 R 525 R 20 R 825 R 300 R 13 600 R 567 R 20 R 887

Savings Potential                   -R 32        -R 36

Page 24: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

AGENDA1.SESSION 2: CITRUS CONTAINER RAIL ACTIVITIES

1.Mitchell Brooke – Time and Temperature Factors for Reefers Inland Loaded vs. Port Loaded

2.Mitchell Brooke – Polokwane Hub Project Status Update

3. Andy Connell – Letsitele Container Train Value Added Services 4. Daleen Endley – Letsitele Container Train Critical Success Factors5. Discussions6. Way Forward

2. EU 24-HOUR RULE - REG EC/1785 of 2006

Page 25: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

Overview of Citrus Rain Transportation?

Definition : Intermodal freight transport involves the transportation of freight in an intermodal container or vehicle, using multiple modes of transportation (rail and truck), without any handling of the freight itself when changing modes. The method reduces cargo handling, and so improves security, reduces damages and losses, and allows freight to be transported faster. Reduced cost and increased efficiency is achieved by utilizing this method of transportation.

Packhouse

Packhouse

Packhouse

Inland Facility

Port Cold Store

Inland Transfer HubFruit transferred from

Road to Rail(Breakbulk & Containers)

Port Dispersion Siding - wagons

are routed directly to

Receiving Point

Container Terminal

Fruit Terminal

Rail Journey

Road Journey

The Intermodal Concept Flow Model

3 Mode Approach:1. Ambient break-bulk2. Packhouse stuffed Reefer

Containers3. Reefer Containers stuffed at

inland facility

Main delay factor is at

the port routing points

Page 26: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

Reefer Container Loading Comparison(Pre-cooling and Shipping Timeframes)

Packhouse

Cold Store

Cold Room or Container Stuffing

Pre-cooling Temp>/= 10 DAYS

</= 3 DAYS

</= 1 DAY

>/= 6 DAYS

Inland Ambient Store

Container Stuffing

Pre-cooling Temp</= 8 DAYS

</= 4 DAYS

</= 4 DAYS

PackhouseContainer Stuffing

Pre-cooling Temp</= 4 DAYS

Port Stuffed Reefer

Packhouse Stuffed Reefer

Inland Stuffed Reefer

Container Terminal>/= 10 DAYS

> Handling and Storage Charges< Fruit Quality and Damages due to excessive handling?Highest Carbon Footprint Factor

Logistics Nightmare

Container Terminal</= 7 DAYS

Container Terminal</= 3 DAYS

Zero Handling and Storage Charges

High Risk Logistics

Best for Fruit IntegrityBest Carbon Footprint Factor

< Handling and Storage Charges

Medium / High Risk Logistics

Better for Fruit IntegrityBetter Carbon Footprint Factor

It must be noted that fruit could be </= 7 days of age

before being stuffed

PackhouseNIL DAYS

Best Shipping time to Markets

Better Shipping time to Markets Note: this assumption is based on

Letsitele - Durban average times during peak season.

It must be noted that cooling times may vary

depending on refrigeration

environment – Forced air or static cooling

rooms.

Page 27: LETSITELE CITRUS RAIL WORKSHOP 10h30 - 10 TH  MARCH 2011 THE JUNCTION, LETSITELE

AGENDA1.SESSION 2: CITRUS CONTAINER RAIL ACTIVITIES

1. Mitchell Brooke – Time and Temperature Factors for Reefers Inland Loaded vs. Port Loaded

2. Mitchell Brooke – Polokwane Hub Project Status Update

3.Andy Connell – Letsitele Container Train Value Added Services

4.Daleen Endley – Letsitele Container Train Critical Success Factors

5.Discussions6.Way Forward

2. EU 24-HOUR RULE - REG EC/1785 of 2006