A superior product that promises operational efficiencies demands a highly efficient logistics environment to meet customers’ production timelines. While Kumba does not own the rail from Sishen and Kolomela mines to the Saldanha port, it is increasingly involved in the logistics value chain to ensure that we deliver on our promises. Existing free on board (FOB) services have been extended to include cost, insurance and freight (CIF) and an increasing proportion of Kumba’s total exports is now delivered to the customer’s gate.
The Ocean Freight Management Team supports Kumba’s export volumes sold via the CIF strategy through the vetting, chartering and operational management of vessels. The shipping desk, with its strong relationships in the freight market, provides strategic guidance to Kumba on shipping freight needs, integrated port and shipping strategies.
As a global shipping desk, OFM is able to secure competitive freight instruments for individual Anglo American business units by leveraging their collective size and volume.
OFM has also developed and implemented a vetting system that ensures that Anglo business units, including Kumba, will only engage with counterparties and vessels that have satisfied its minimum vetting requirements. With the OFM team possessing all the technical expertise to critically examine all fields of the assessment, the vetting process consists of several industry-standard tools that are used collaboratively to ensure a rigorous evaluation.
In addition, Anglo has aligned itself with Gard, a protection and indemnity insurer for the marine industry, also known as a P&I Club. This involvement from production to doorstep to deliver a premium product provides real credibility to our express aim of being a value-adding iron supplier of ore to our customers.
Rail infrastructure
The 861 km rail system that links Sishen mine to the dedicated deepwater port and bulk loading facilities at Saldanha Bay is one of the most efficient and advanced logistical systems for the handling and loading of iron ore in the world. Owned and operated by the South African parastatal transport company Transnet, the system is a model of integrated planning and cooperation between the country’s public and private sectors in South Africa.
Transnet is committed to expanding the Sishen-Saldanha iron ore export channel from 47 Mtpa to 60 Mtpa: Of that capacity, 9 Mtpa has been allocated to Kumba for the development of Kolomela mine. The iron ore export channel expansion represents a capital investment by Transnet of over R3.6 billion in real terms, for additional rolling stock, upgrading of electricity infrastructure, and the construction of bypass loops and a 36 km rail link to service the new mine by 2012.
Port infrastructure
South Africa
The port at Saldanha Bay is the only dedicated iron ore export facility in South Africa and is larger than the country’s other four major ports combined. Its proximity to Sishen mine and Kolomela mine, linked by rail, makes it the gateway of choice for exporting seaborne iron ore to Kumba’s international customers. Construction of the present harbour began in 1973, with the first iron loaded onto a vessel in 1976. Today, the port operates around the clock, and has a loading capacity of around 8,000 tons an hour, with peaks of up to 10,000 tons an hour. The ore quay at Saldanha has two berths allowing two ships of up to 350,000 DWT to berth simultaneously at the iron ore jetty. From arrival to departure – including piloting, berthing, loading, draft survey and deberthing – an ore vessel carrying 120,000 tonnes will be in Saldanha Bay for just 24 hours. A vessel carrying 180,000 tonnes will spend 36 hours in the port, while a vessel carrying 240,000 tonnes of ore will be there for 48 hours. The fi rst phase of the port expansion and upgrading of equipment and infrastructure is well under way.
China
Kumba has renewed its long-standing agreement with the Qingdao Port Authority for the handling and use of iron ore stockpile facilities at Qianwan Port in the city of Qingdao. From that facility Kumba can readily supply steelmaking plants operating in the world’s fastest-growing region as well as to other countries in the Asian Basin. Medium to smaller customers in China benefit most from the proximity of the stockpiling area at Qianwan port, experiencing faster turnaround times and the flexible option of ordering smaller quantities.
