TRANSNET PORT TERMINALS How to develop a successful strategy to - - PowerPoint PPT Presentation

▶
transnet port terminals
SMART_READER_LITE
LIVE PREVIEW

TRANSNET PORT TERMINALS How to develop a successful strategy to - - PowerPoint PPT Presentation

Dec 24, 2022 242 likes •401 views

TRANSNET PORT TERMINALS How to develop a successful strategy to enable more efficient port operations - Willie Coetsee, Senior Strategist, Transnet Port Terminals 25 June 2013 TABLE OF CONTENTS Transne ansnet State te Own wned d Com

slide-1
SLIDE 1

TRANSNET PORT TERMINALS

How to develop a successful strategy to enable more efficient port operations

  • Willie Coetsee, Senior Strategist, Transnet Port Terminals

25 June 2013

slide-2
SLIDE 2

TABLE OF CONTENTS

  • BRICS

ICS

  • Transne

ansnet State te Own wned d Com

  • mpan

pany Limit mited ed

  • Afr

frica ica Str trat ategy egy

  • New

w Strat ategic egic Directio ection

Source of picture: www.newstimeafrica.com

  • Market

ket Dema mand nd Strategy ategy

2

slide-3
SLIDE 3

Supporting

3

Capital ital Proje jects ts Transnet t Foundation dation Prope perty ty Transnet t Pipelin lines (TPL) Transnet t Engin ginee eerin ring (TE) Transnet t Freigh ght t Rail (TFR) Transnet t Port t Terminals als (TPT) Transnet t Natio ional l Ports ts Authority

  • rity

(TNPA)

Pipelines Rail Ports

  • 16 Cargo

go Termi minals

  • per

eratin ting g acros

  • ss

7 SA por

  • rts
  • Revenue 7 bn

bn

  • Assets

ts R13.5 bn bn

  • 6 324 employee

ployees

  • 8 Commer

mmercial ports ts along g 2943km of coastline

  • Revenue R8.4bn
  • Assets

ts R56 bn bn

  • 3558 employee

ployees

  • 20 500 km of

railwa way y track

  • 182 million
  • n tons of

freigh ght

  • General freigh

ght t & 2 heavy vy haul expo port t lines

  • Revenue 22.2 bn

bn

  • Assets

ts R54.7 bn bn

  • 24 177 employee
  • yees
  • Suppo

port t TFR for rolling stock k and TPT for lifti ting g equipm pment mainten tenance

  • Revenue 9.8 bn

bn

  • Assets

ts R8.6 bn bn

  • 13 020 employee
  • yees
  • 18 billion
  • n litr

tres of petr trol

  • leum

m prod

  • ducts

ts and gas throu

  • ugh

gh 3 000 km of pipelines, mainly to Gauten teng

  • Revenue 1.3 bn

bn

  • Assets

ts R20.1 bn bn

  • 600 employee

ployees

  • R300 billion
  • n of

capita tal inve vestmen tments ts over next xt 6 years

  • CSI in Educati

tion

  • n,

Health th, Sport, t, Arts ts & Agricultur ture

  • Prope

perty y Manage gemen ment

3

slide-4
SLIDE 4

4

4

Shortest Trade Route between Shangh nghai and Sant ntos

  • s is via South Africa 10,972nm = 21 days @ 21 knots

via Panama Canal12,967nm = 26 days + transit fee via Suez Canal 13,544nm = 28 days + transit fee

Source: http://www.searates.com/reference/portdistance/

slide-5
SLIDE 5

5 Lome (Togo) Port Louis (Mauritius) Toamasina (Madagascar) Lagos (Nigeria) Cotonou (Benin) Walvis Bay (Namibia) Tema (Ghana) Cape Town (SA) Dar es Salaam (Tanzania) Tanga (Tanzania) Mombasa (Kenya) Nacala (Mozambique) Beira (Mozambique) Maputo (Mozambique) Richards Bay (SA) Durban (SA) East London (SA) Ngqura (SA) Pointe Noire (Congo) Douala (Cameroon) Source: Team analysis Port Elizabeth (SA) Lobito (Angola) Luanda (Angola)

5

Matadi (DRC)

slide-6
SLIDE 6

6

6

slide-7
SLIDE 7

7

Transnet Strategy

  • Journey to Date

Pre 4-poin int Turnaro around nd Plan ▪ Financial instability ▪ Volatile earnings and cash flows ▪ Declining

  • perational

performance ▪ Possibility of Concessioning Pre 2005 ▪ Laying foundations for operational performance through investment and efficiency improvements ▪ Robust governance and supporting environment

  • Disposal of non

core assets

  • Reignite investment

4-point int Turnaro around und Plan 2005 2005 - 2007 2007 ▪ Strong financial results ▪ Focused investment to eliminate backlog; investment lagging volumes ▪ Operational stability ▪ Effective cost control and reduction of cost base ▪ Integrated commercial management ▪ Strategic asset/ liability management ▪ Sound funding strategy Quantum um Leap p Strat ategy 2008 2008-2011 11 Market Demand nd Strat ategy y (MDS) S) 2012 2012-2019 19 ▪ Continued financial performance ▪ Invest stment nt focus us

  • n expandin

nding capac acit ity y to meet market demand ▪ Capture operational efficiencies ▪ Expand funding sources ▪ Accele lerat rate South Africa’s economic transf sform rmat atio ion by support of the NGP Financial cial stabili ility Opera ratio iona nal l stabil bilit ity Growt wth

Source: Transnet Corporate Plan

slide-8
SLIDE 8
  • Unconstrained

Cust stomer

  • mer demand
  • Improved Vessel

turnaround time

  • Process improvement
  • Potential identification
  • Understanding the

customers’ business

  • Cust

stomer

  • mer Interaction
  • Personal Visits
  • 3rd Party

Interviews

  • Focus Groups
  • B2B Inter-action
  • CLOF, SAASOA,

SAAFF

  • Collaborate with the

Cust stomer

  • mer
  • Market Demand Strategy
  • Focus on new

capacity

  • New Methodology
  • ECICS
  • Communicate with

the Cust stomer

  • mer
  • Infrastructure

Investment

  • People development
  • Business Process

Improvement

Idea Diagnos

  • sti

tic Strategy tegy Formulati tion

  • n

Roll out

8

slide-9
SLIDE 9

9

Source: Africa Team analysis

Market Demand Strategy

  • 2012 to 2019
  • R300bn Transnet-wide capital investment

programme over next 7-years

  • Expanding rail, port and pipeline infrastructure
  • Increase in capacity to meet market demand
  • Continued financial stability and strength
  • Significant productivity and operational efficiency

improvements

  • Shift from road to rail – reducing the cost of

doing business and carbon emissions

  • Enabling economic growth
  • Job creation, skills development, localisation,

empowerment and transformation opportunities

  • TPT will invest R33bn

Divisional split (Rbn)

11 33 47 4 201 4

Other TPL TPT TNPA TRE TFR Other 29%

Maintain 71% Expand

Change in emphasis

slide-10
SLIDE 10

10

Source: Africa Team analysis

New Strategic Direction

  • Supply Chain Integration & Global Expansion

Integr tegrati tion

  • n

into to the e Supply ly Chain in Glob

  • bal

Opera erations ions Terminal Operations

Efficient Operations Innovative Value Adding Services Expanding the Horizon

slide-11
SLIDE 11

11

Source: Africa Team analysis

Defend & Grow

  • Strategic Interventions in 4 Areas

Terminal Operations Customer Service Grow and defend local turf

slide-12
SLIDE 12

Expand into logistics services

12

  • TPT could expand its active role by forward and backwards integration into the transportation

value chain

  • Potential businesses areas to support a fully integrated supply chain solution are:

1) Inland depots/external distribution warehouses (Value Adding Services) 2) Container lifecycle management (Pre Trip Inspection, Repairs, Modifications) 3) Cargo support (Logistics, SEZ’s) 4) Equipment Maintenance (In-sourcing, Outsourcing to other clients/countries) 5) Private Sector Participation 6) Short Sea Shipping

Integration into the Supply Chain

  • Forwards & Backwards Integration
slide-13
SLIDE 13

13

Africa Strategy

  • The AU has Identified 14 Corridors as the Main

African Corridors that Needs Development

1 Kenitra-Casablanca Corridor 2 Greater Cairo Region 3 The Dakar-Touba corridor (Touba-Mbackѐ) 4 The Greater Ibadan-Lagos-Accra (GILA) urban corridor 5 The great Haoussa-Yoruba-Anshanti city triangle (GHAYA-CT) 6 The Emerging Luanda-N’Djamena corridor 7 The Kampala-Entebbe corridor 8 Nairobi metropolitan region 9 Walvis Bay corridor 10 North South corridor (Cape Town-Johannesburg-Harare-Lusaka- Dar es Salaam) 11 The Maputo-Gauteng development corridor 12 Durban development corridor 13 Beira corridor 14 Maputo-Limpopo corridor

Source:E&Y Report – Time for Africa

3 4 2 13 10 12 11 14 9 6 5 7 8 6 6

13

slide-14
SLIDE 14

14