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Read the article below and answer all the questions Article: Coal miners turn to trucks as rail service deteriorates. Mining companies in South Africa have resorted to trucking coal to ports to meet a surge in European demand since the war in Ukraine started, bypassing the deteriorating rail infrastructure they blame for billions of dollars in lost revenue. Poor maintenance, a lack of spare parts for trains, copper cable theft and vandalism have disrupted state logistics firm Transnet s freight rail services, causing coal and iron ore exports to fall in recent years. In April, Transnet declared force majeure on contracts with producers, but with coal prices near record highs, mining firms including Glencore have turned to trucks, one industry source said. A Glencore spokesperson declined to comment. Trucking coal costs about four times more than rail, according to miner Menar. It has started using trucks but said the high coal prices mean miners can absorb the cost, for now. The industry at large are on their knees, so they are resorting to drastic measures, said Clifford Hallatt, chief operating officer at Canyon Coal, a joint venture between Menar and commodity trader Mercuria. At Canyon Coal s Khanye Colliery some 90km from Johannesburg, it takes about 80 trucks - each carrying 34 tonnes to replace one average Transnet train, making it unsustainable financially, boosting emissions and clogging roads. But the company says it has little choice. A year ago, it was loading five or six Transnet trains a week from Khanye. That has dropped to just two or three now, and its stockpiles of coal have been mounting, Hallatt said. Coal prices rocket Demand, meanwhile, has shot up since the war in Ukraine. The European Union has announced a ban on Russian coal, and mining companies in South Africa say they are fielding calls from European countries looking for imports. As for prices, Australian thermal coal futures were trading at about $80 a tonne at the start of 2021. A week after Russia sent its forces into Ukraine, they rocketed to a record high of $440 and are now trading at $326 a tonne. Menar is trucking about 120,000 tonnes of coal a month and plans to increase that to 200,000 Caut 400 rall lines, although that s an option Transhet s Mzimela rejects. Since security collaboration started, the number of drones monitoring the coal line from Mpumalanga to Richards Bay has more than doubled and incidents have fallen to about 19 a week from 35 previously, according to Transnet. The copper cables carrying electricity from substations along the line to signalling systems are regularly stolen, for example, as well as other metal parts along the track. For the first time, South Africa was ranked among the 10 least attractive jurisdictions for mining investment in the Fraser Institute s annual mining industry survey last year. Gabrielle Reid, associate director for strategic intelligence at S-RM, said the logistical challenges were now prompting some South African miners to look outside the country for growth opportunities. Our most recent experiences with rail in South Africa make for a compelling diversification case, July Ndlovu, chief executive of thermal coal producer Thungela Resources, told analysts on a call in March. Given the concentration that we ve got in a single geography and the concentrated risk associated with that infrastructure, I think it stands to reason that we should look at other opportunities. Source: https://www.bizcommunity.com/Article/196/608/227444.html Accessed 01 August 2022 1.1 Historically so, railroads have been the primary haulers of coal across the globe. Discuss in detail the cost structure and it s economic impact on miners moving from rail to trucks as a major transporter of coal. (15) 1.2 Using the Transport Technology, how can Transnet revitalize the rail infrastructure in South Africa? (10) 1.3 From the article, what implications towards the Green ad Sustainable operations have you identified as far as switching the modes of coal transportation is concerned? (10) Question 2 2.1 Airports Company of South Africa (ACSA) owns and operates principal airports in South Africa. How can ACSA improve the safety and security issue at the major airports in which in operates at? (6) 2.2 Discuss the role of goverment in the aviation industry. Your discussion should speak to policy, economic and safety regulations. (9) Question 3 3.1 In less that 1000 words, write an Essay titled The State of Rail Transport in South Africa . Your essay should address commercial, public & private and passenger rail. (20) TOTAL MARKS [70 Read the article below and answer all the questions Article: Coal miners turn to trucks as rail service deteriorates. Mining companies in South Africa have resorted to trucking coal to ports to meet a surge in European demand since the war in Ukraine started, bypassing the deteriorating rail infrastructure they blame for billions of dollars in lost revenue. Poor maintenance, a lack of spare parts for trains, copper cable theft and vandalism have disrupted state logistics firm Transnet s freight rail services, causing coal and iron ore exports to fall in recent years. In April, Transnet declared force majeure on contracts with producers, but with coal prices near record highs, mining firms including Glencore have turned to trucks, one industry source said. A Glencore spokesperson declined to comment. Trucking coal costs about four times more than rail, according to miner Menar. It has started using trucks but said the high coal prices mean miners can absorb the cost, for now. The industry at large are on their knees, so they are resorting to drastic measures, said Clifford Hallatt, chief operating officer at Canyon Coal, a joint venture between Menar and commodity trader Mercuria. At Canyon Coal s Khanye Colliery some 90km from Johannesburg, it takes about 80 trucks - each carrying 34 tonnes to replace one average Transnet train, making it unsustainable financially, boosting emissions and clogging roads. But the company says it has little choice. A year ago, it was loading five or six Transnet trains a week from Khanye. That has dropped to just two or three now, and its stockpiles of coal have been mounting, Hallatt said. Coal prices rocket Demand, meanwhile, has shot up since the war in Ukraine. The European Union has announced a ban on Russian coal, and mining companies in South Africa say they are fielding calls from European countries looking for imports. As for prices, Australian thermal coal futures were trading at about $80 a tonne at the start of 2021. A week after Russia sent its forces into Ukraine, they rocketed to a record high of $440 and are now trading at $326 a tonne. Menar is trucking about 120,000 tonnes of coal a month and plans to increase that to 200,000 Caut 400 rall lines, although that s an option Transhet s Mzimela rejects. Since security collaboration started, the number of drones monitoring the coal line from Mpumalanga to Richards Bay has more than doubled and incidents have fallen to about 19 a week from 35 previously, according to Transnet. The copper cables carrying electricity from substations along the line to signalling systems are regularly stolen, for example, as well as other metal parts along the track. For the first time, South Africa was ranked among the 10 least attractive jurisdictions for mining investment in the Fraser Institute s annual mining industry survey last year. Gabrielle Reid, associate director for strategic intelligence at S-RM, said the logistical challenges were now prompting some South African miners to look outside the country for growth opportunities. Our most recent experiences with rail in South Africa make for a compelling diversification case, July Ndlovu, chief executive of thermal coal producer Thungela Resources, told analysts on a call in March. Given the concentration that we ve got in a single geography and the concentrated risk associated with that infrastructure, I think it stands to reason that we should look at other opportunities. Source: https://www.bizcommunity.com/Article/196/608/227444.html Accessed 01 August 2022 1.1 Historically so, railroads have been the primary haulers of coal across the globe. Discuss in detail the cost structure and it s economic impact on miners moving from rail to trucks as a major transporter of coal. (15) 1.2 Using the Transport Technology, how can Transnet revitalize the rail infrastructure in South Africa? (10) 1.3 From the article, what implications towards the Green ad Sustainable operations have you identified as far as switching the modes of coal transportation is concerned? (10) Question 2 2.1 Airports Company of South Africa (ACSA) owns and operates principal airports in South Africa. How can ACSA improve the safety and security issue at the major airports in which in operates at? (6) 2.2 Discuss the role of goverment in the aviation industry. Your discussion should speak to policy, economic and safety regulations. (9) Question 3 3.1 In less that 1000 words, write an Essay titled The State of Rail Transport in South Africa . Your essay should address commercial, public & private and passenger rail. (20) TOTAL MARKS [70
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Question 1 11 Cost Structure and Economic Impact of Moving from Rail to Trucks Historically railroads have been the primary mode of transporting coal due to their costeffectiveness over long distances ... View the full answer
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