COLLERIES COMMITTEE CHAMBER OF MINES - 21 AUGUST 2013

COLLERIES COMMITTEE
 CHAMBER OF MINES

      21 AUGUST 2013

Points for Discussion

 1       Introduction of the Senior Manager: Logistics

     2       Safety results - YTD

         3    27 June 2013 Work Stoppage Feedback

     4       Weekend Work Stoppage and support required

 5       Integrated Logistics Strategy - Overview

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It gives me great pleasure to announce the following new senior management appointment in Primary Energy Division.

 New Senior Manager: Logistics
Mr. Edward Funyufunyu (Eddy) is
appointed as a Senior Manager: Logistics
within the Logistics Department in Primary
Energy with effect from the 12 August
2013. Eddy brings with him a wealth of
supply and logistics experience as he was
previously employed as the Service
Cluster Head at Masana Petroleum
Solutions responsible for strategic
leadership across four functions (Supply/
Logistics/HSSE/Assets). He previously
worked for both Engen Petroleum and BP
Southern Africa.
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Safety YTD (Fatal)

• FCA:   7 Incidents
         • Four Public

         • Two Contractor

         • 1 Medical (under investigation)

• Del:   7 Incidents
         • Six Public

         • 1 Medical (investigation findings still to be
           provided)

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RESULTS

FCA’s Fatal Free Days:     24 Days
Delivered Fatal Free Days: 38 Days

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27 June 2013 Work Stoppage

• FCA believe Delivered don’t adhere to life saving rules includes speeding, driving in
  misty conditions, tailgating, following distance, and number of trucks

• Delivered believe FCA don’t adhere to life saving rules includes speeding and driving
  in misty conditions

• Very little effort to reduce queuing and standing times at Sources and Power
  Stations – leads to fatigue

• Transporters lack competent Operations and Safety Managers

• Work stoppage sessions should happen more often and not when fatalities occur

• Not all transporters promote safety incentives

• Some transporters still remunerate based on loads and not pay as per NBCRFI

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27 June 2013 Work Stoppage (Cont.)

• Many transporters don’t have transporter safety packs or they are not updated/
  accurate

• Rapid and extensive Public awareness of the coal transportation business in order to
  reduce public caused fatalities

• High driver turnover and suggests the lack of consistency of competent drivers – not
  all drivers have defensive driver training. The need to screen drivers is critical

• Owners have concern over driver attitudes/ concern over behaviour once they are on
  their own on the roads

• Not all companies install drive cams proactively. This is improving but not fast
  enough

• Evident that there is a difference between companies in management participation,
  understanding and support to the drivers

• Road conditions pose a serious safety concern and leads to fatigue due to the
  increased
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            concentration required

Road Conditions

• The Hendrina Carolina and Breyton Ermelo roads (not indicated what
  the problem is, but generally complaints that the roads are too narrow)

• The bridge on the R38 from Tutuka to Bethal is too narrow

• Carolina Ermelo road too narrow

• Visibility at the R542 / R35 stop

• Kriel / Kinross intersection - high accidents

• R546 - public vehicles don’t stop at the STOP

• Coming off the N3 into Nigel needs a robot

• Balfour Heidelberg road is too narrow

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Other useful control measures
 requested
• Drive cams in all their trucks – good response however
  opportunity for all to comply

• Installation of side under-runs on all their trucks

• Provide Eskom with a fleet list of all Eskom Business
  routes to control number of vehicles on the road and to
  curb congestion at destination

• All vehicles to have full and extra visibility markings where
  possible for the truck to be identifiable in poor visibility
  conditions.

• Global telematics tracking OBC systems DX 250’s on all
  trucks and give Eskom a view of their Eskom business
  trucks
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PROFILING COMPANIES AND DRIVERS

• Reason for issuing of Driver ID Tags per driver:
  a) Regularly monitor and assess driver behaviour
  b) Profile driver behaviours that warrant specific training and to arrange accordingly
  c) Reward good drivers based on safety performance incentives
  d) Manage poor performing drivers from a safety perspective
  e) Manage poor performing companies contractually who are not managing safety
  proactively

   2013/09/04                                                                10

Monthly Overloading Trends

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Weekend Stoppages - Background

• During the 5 year period, there were 134 incidents resulting in
  fatalities (regardless of the number of fatalities in each of the
  incidents)

• 68% of the incidents (91) were at night (18:00 – 06:00)

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Fatal Incidents per day of the week

                  00:00 – 24:00
                                  68% of the fatal incidents
                                   happened at night, i.e.
                                       18:00 – 06:00

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Day of the week – Night time

                 18:00 – 06:00

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Day of the week – Day time

                 06:00 – 18:00

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Night time incidents

                                  Saturday night
                                 rate of increase
             Friday night rate
                of increase

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Trending per night

                        The other
                     nights all trend
                       downwards

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Conclusion

• For the 5 year period:

   • 36% of the fatal incidents happen between Friday 18:00 and
     Sunday 06:00

       • 15% for a Friday night

       • 6% for a Saturday during the day

       • 15% for a Saturday night

   • The trend for a Friday night and Saturday night is increasing (as
     well as a Thursday night), especially at the very end of the window
     period

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Controls to be put in place
1. The stoppage during night times only allows companies to rest their
   drivers as well as Roshcon employees
2. If Roshcon is rested we can have more resources to ensure more
   visibility on the roads during the day
3. Working during the day on Saturday relieves the pressure and prevents
   the impact of the night stoppages on Fri and Sat from rolling over to
   Sunday which may cause other safety problems like congestion, queuing
   and tailgating
4. As a control we can institute 100% alcohol testing in our operation in two
   ways:
    a.      Roshcon random alcohol testing
    b.      Transporters testing at their yards before drivers leave the yard.
           For example, Jabula does this as a routine practise
5. Stoppage may hurt already cash strapped transporters and this in
   conjunction with operational inefficiencies could cause transporters to
   take short cuts especially on safety measures. Drivers may lead to poor
   driving behaviour to meet targets and cover losses
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Controls to be put in place

 6. If we adopt this stoppage we need to up our operational game on the
    days we do operate by giving assurance that:

    a.   Coal is available
    b.   Ensure accuracy of coal availability report
    c.   Prevent excessive rerouting
    d.    Manage delivered fleet and size by:
                                       i. Sticking to the hourly rates
                                     ii. Providing Eskom the daily weighbridge
                                          data
                                    iii. Proving Eskom a fleet list
    g.   Ensure loading infrastructure at mines are effective and adequate
    h.   Ensure offloading infrastructure at power stations are effective and
         adequate
    i.

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Phase 1 Rollout: February 2012
!

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General Incident Findings
• Lack of update of the companies safety pack and timeous provision of updates to
  Roshcon Safety
• Lack of adherence to companies own transportation safety plan
• Adequacy of the number of truck drivers - taking 12 hour shift times into account
• Scheduling of drivers – shift management plans
• Monitoring of driver hours to comply with bargaining council
• Payment of drivers in accordance with bargaining council and non-load based
  remuneration
• Company management of fatigue
• Company induction and orientation of drivers
• Lack of safety culture in companies - Leadership and vision of safety from the directors
• Lack of trip route assessment culture – this is critical in knowing the route environment
  on every trip
• Vehicle inspection check list in accordance with Eskom Vehicle Policy
• Driver recruitment – process, check, black-listed drivers, medicals, inductions
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Lessons learnt
• Vehicle visibility and markings is critical especially for night time or poor visibility conditions

• Comply with all road traffic rules

• Comply with life-saving rules…DO NOT SPEED (MAX IS 80km/h)

• Overtaking is a high risk activity

• Adapt your driving and speed to the prevailing conditions. Defensive driving techniques are
  lacking or not practiced. Retraining is required.

• Poor behaviour by other drivers / companies is no reason / excuse to display the same
  poor behaviour

• Don’t work longer than the maximum working hours allowed for as per bargaining council
  resolutions

• Get rest in line with the minimum rest periods normally every 2-3 hours

• Don’t accept load based incentives. Report this to Eskom directly

• Update your transporter safety pack
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Roshcon BMS commitment

• Deal contractually with safety non-compliance

• Increase monitoring and safety resources

• More efficient investigation turn around times including suspensions

• Immediate transporter safety pack compliance audit includes checking
  of vehicle markings and visibility indicators

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Eskom Commitment

• Ensure that operational rules and practices support good safety
  practices

• Promote innovative and new ideas towards increased safety practice.
  All new ideas are welcome for further investigation and feasibility

• Provide the support needed by Roshcon BMS (Coal Logistics) to carry
  out its mandate towards safety and environmental management

• Work in collaboration with the road authorities and traffic departments
  to counter the aspects of poor public road behaviour and road
  conditions

• Zero tolerance towards chasing production over safety and the
  environment

• Contractual enforcement to safety and environmental transgressions

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Transporters

• Ensure that organizational rules and practices support good safety practices

• Ensure drivers stay within the maximum working hour requirements and that they
  comply with the minimum rest period requirements – The onus is on you as the
  employer – “You may not require or permit ….”

• Zero tolerance to non-compliance of any nature – you need to consistently take
  action against any non compliance

• Report all incidents immediately and to authorized persons

• Communicate the information shared with you at the Transporters Meeting with you
  drivers / staff and information sharing reports

• When communicating to your staff, ensure that it is in a common language
  Implement vehicle markings and visibility enhancements with immediate effect. Last
  reminded in April 2013

• Invest in your assets (truck and driver) and install drive-cams

• Submit all requirements timeously for transporter safety pack
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Drivers
• Absolutely and consistently obey every single road traffic rule

• Comply with life saving rules all the time – it is for your benefit and FAMILY

• Stay within the speed limit and reduce speed when conditions like rain, mist or
  darkness necessitate it - your speed need to be such that you can come to a dead
  stop within the distance of your visibility

• Ensure you are well rested and take regular breaks

• Practice defensive driving techniques

    • Observe the behaviour of other road users. We need to drive for others

    • Anticipate how other road users may behave and be ready to respond to it
      correctly

    • What can go wrong and be ready to respond to it correctly

• Do drivers have any further input into ways of improving the prevailing situation.
  Also feel free to indicate the positive practices
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