TRANSNET SOC LTD AND TRANSNET PORT TERMINALS - Visit by delegation - - PowerPoint PPT Presentation

TRANSNET SOC LTD AND TRANSNET PORT TERMINALS

• Visit by delegation from H E Mr. André Kimbuta, Governor of Kinshasa, DRC and his delegation

6 August 2013

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TRANSNET SOC LTD

TABLE OF CONTENTS

1

TRANSNET DIVISIONS MARKET DEMAND STRATEGY PORT DEVELOPMENT

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TRANSNET STATE OWNED COMPANY LTD

• OPERATIONAL DIVISIONS
• 16 Cargo

Terminals

• perating across

7 SA ports

• Revenue 7 bn
• Assets R13.5 bn
• 6 324 employees

Supporting

2

• 8 Commercial

ports along 2943km of coastline

• Revenue R8.4bn
• Assets R56 bn
• 3558 employees
• 20 500 km of

railway track

• 182 million tons of

freight

• General freight & 2

heavy haul export lines

• Revenue 22.2 bn
• Assets R54.7 bn
• 24 177 employees
• Support TFR for

rolling stock and TPT for lifting equipment maintenance

• Revenue 9.8 bn
• Assets R8.6 bn
• 13 020 employees
• 18 billion litres of

petroleum products and gas through 3 000 km of pipelines, mainly to Gauteng

• Revenue 1.3 bn
• Assets R20.1 bn
• 600 employees
• R300 billion of

capital investments over next 6 years

• CSI in Education,

Health, Sport, Arts & Agriculture

• Property

Management

Capital Projects Transnet Foundation Property Transnet Pipelines (TPL) Transnet Engineering (TE) Transnet Freight Rail (TFR) Transnet Port Terminals (TPT) Transnet National Ports Authority (TNPA)

Pipelines Rail Ports

PAGE

Mr Mrs s Nonk Nonkulul ululek eko

• Si

Sishi shi Gr Grou

• up Ex

p Exec ecutiv utive: e: Hu Human man R Resou esource ces Mr

• Mr. Ma

Mark Gr k Gregg-Ma Macdo cdonald nald Gr Grou

• up Ex

p Exec ecutiv utive: e: Plann Planning ing an and d Mon

• nitoring

itoring

• Mr. Anoj Singh

Chief Financial Officer

TRANSNET SOC LTD

• STRATEGIC GOVERNANCE FRAMEWORK

Mr. . Kh Khomo

• motso

tso Phihlela Phihlela Gr Grou

• up Ex

p Exec ecutiv utive: e: Comme

• mmercial

cial Ms

• Ms. Nk

Nkuli uli Maba band ndla la Gr Grou

• up Ex

p Exec ecutiv utive: e: Le Lega gal l Ser Servi vice ces + + Chief hief Ex Exec ecutiv utives es Op Oper erating ting Div ivis isions ions

• Mr. Brian

rian Molef

• lefe

Gr Grou

• up C

p Chief hief Ex Exec ecutiv utive

Mr Tau Morwe Mr Karl Socikwa Mr Siyabonga Gama Mr Richard Valihu Ms Sharla Pillay Mr Charl Möller Ms Raisibe Lepule

3

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TRANSNET’S VISION….

DELIVERING FREIGHT RELIABLY

Transnet will meet customer demand for reliable freight transport and handling services through:

• Fully integrating and maximising the use of
• ur unique set of assets
• Continuously driving cost efficiencies
• A demonstrated concern for sustainability

in everything we do

4

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63% 30%

STAKEHOLDER ENVIRONMENT

5

Success ultimately depends on a broader South African partnership and support – S.A. citizens will reap benefits

Government departments Regulators Investors Key customers Labour unions Transnet Suppliers

Greater collaboration thereby creating and enabling environment for successful execution of MDS Continued support and access to cost effective funding to meet requirements Alignment and collaboration on growth and expansion plans and conversion to Take or Pay contracts Labour stability to support execution and competitiveness of SA freight logistics system Partner with Transnet to deliver capital spend and achieve localisation and empowerment

• bjectives

Alignment on tariff methodology and regulatory policy to create regulatory certainty

Employees

Increase in labour productivity to deliver on volume growth and MDS targets Performance

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FINANCIAL AND OPERATIONAL PROFILE

• Would rate in the Top 25 of the biggest SA listed firms ito

turnover, if Transnet SOC Ltd was listed

• Contributing 1.5% to SA GDP

Turnover $ 7.2 bn

• Used to develop infrastrucure and reduce the cost of doing

business by increasing capacity and enhancing productivity

EBITDA $ 3 bn

• In Top 10 of SA’s biggest firms ito assets
• Requires substantial maintenance to continue operating

efficiently

Assets $ 24.2 bn

• Equates to 75% of the Asset Base

Capital Investments* $ 40 bn

• Transnet ensures the development of skills through training

and development

• 56,354 (excluding contractors)

Employment 63,725

All stats based on 2012/13 Corporate Plan – unless otherwise stated *Planned investments over the next 7 years

6

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Transnet’s Integrated Network is Underpinned by a Limited Number

• f Key Corridors
• 7. Saldanha

Bulk (Export iron ore), Breakbulk

• 6. Cape Town

Containers, Breakbulk

• 4. Ngqura

Containers

• 3. East London

Containers, Breakbulk, Agri-Bulk, Automotives

• 1. Richards Bay

Bulk (Export coal, magnetite, Chrome), Breakbulk

• 2. Durban

Containers, Breakbulk, Agri-Bulk, Automotives

• 5. Port Elizabeth

Containers, Breakbulk, Bulk, Automotives WESTERN CAPE PORTS EASTERN CAPE PORTS KZN PORTS

20,500 Km Rail Network 182 Million Tons of Cargo pa 4.3 Million Containers pa 18 Billion litres of fuel, oil

TRANSNET OPERATES AN INTEGRATED PORT, RAIL AND PIPELINE NETWORK

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COMPLIMENTARY PORT SYSTEM

delivering freight reliably

Bulk – Iron Ore Containers - Refrigerated Bulk – Coal & Minerals Containers - Gateway Cars - Mercedes Containers - Transhipment Bulk – Manganese

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SOUTH AFRICA’s ROLE IN BRICS

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SOUTHERN HUB FOR WORLD SHIPPING ROUTES

The position of South Africa’s ports system enables it to access to South- South trade, Far East trade, Europe & USA, East & West Africa regional trade

10

Shortest Trade Route between Shangai and Santos is via South Africa 11,270nm = 22 days @ 21 knots via Panama Canal13,130nm = 26 days + transit fee via Suez Canal 13,590nm = 27 days + transit fee

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10 NEW 18,000 TEU SHIPS ORDERED BY MAERSK

• To be delivered over next 3 years

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EVOLUTION OF SHIP SIZES

Source: Geography of Transport Systems

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NGQURA ROLE AS A HUB PORT FOR TRANSSHIPMENT TRAFFIC IS TO ENABLE REGIONAL INTEGRATION

Monrovia (Liberia) Lome (Togo) Port Louis (Mauritius) Toamasina (Madagascar) Takoradi (Ghana) San Pedro (Côte d'Ivoire) Lagos (Nigeria) Cotonou (Benin) Walvis Bay (Namibia) Tema (Ghana) Abidjan (Côte d'Ivoire) 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) Libreville (Gabon) Pointe Noire Matadi (Congo) Douala (Cameroon) Source: Team analysis Port Elizabeth (SA) Lobito (Angola) Luanda (Angola)

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TRANSNET DIVISIONS

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• Transnet Freight Rail is the largest division of
• Transnet. It is a world class heavy haul freight

rail company that specialises in the transportation of freight.

• Transnet Freight Rail has approximately 28 000

employees, who are spread throughout the country.

• The company maintains an extensive rail

network across South Africa that connects with

• ther rail networks in the sub-Saharan region,

with its rail infrastructure representing about 80% of Africa's total.

• The company is proud of its reputation for

technological leadership beyond Africa as well as with-in Africa, where it is active in some 17 countries.

• Transnet Freight Rail has positioned itself to

become a profitable and sustainable freight railway business, assisting in driving the competitiveness of the South African economy. The company is made up of the following six business units:

• Agriculture and Bulk Liquids
• Coal Business Unit
• Container and Automotive Business Unit
• Iron Ore and Manganese Business Unit
• Mineral Mining and Chrome Business Unit
• Steel and Cement Business Unit

TRANSNET FREIGHT RAIL

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• Transnet Pipelines, the custodian of the

country’s strategic pipeline assets, is currently servicing two key industries liquid fuel and gas by transporting petrol, crude oil, diesel and gas products over varying distances.

• The business, formerly known as Petronet

established in 1965, is integral to the well-being of the South African economy.

• It is Transnet Pipelines’ policy to monitor

the integrity of its pipeline network continually.

• Transnet Pipelines is acknowledged as one
• f the leaders in the development of

pipeline survey technology in South Africa.

The business handles an annual average throughput of some 18 billion litres of liquid fuel and more than 450 million cubic metres

• f gases.

The liquid products include crude oil as well as diesel, leaded and unleaded petrol and aviation turbine fuels.

TRANSNET PIPELINES

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• Transnet engineering, an operating division
• f Transnet SOC Ltd, is the backbone of

South Africa’s railway industry.

• TE boasts with eight product-focused

businesses, 150 depots, seven factories and 15, 000 employees countrywide.

• The organisation is dedicated to in-service

maintenance, repair, upgrade, conversion and manufacturing of rolling stock.

• TE manufactures freight wagons,

mainline and suburban coaches, diesel and electric locomotives as well as wheels, rotating machines, rolling stock equipment, castings auxiliary equipment and services.

• In the past financial year TE has done

nearly ZAR1 bn in business in Africa.

• While focus is mainly on the South African market,

investment in research and development to service the specific requirements of Africa and the rest of the world has led to an ever-expanding range of rolling stock products and a comprehensive list of satisfied customers.

• This has further enhanced the organisation’s

international reputation.

• The proximity of the coastal plants to major ports

facilitates the movement of products to and from

• verseas markets.

TRANSNET ENGINEERING

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OVERVIEW

18

• Transnet National Ports Authority provides

port infrastructure and marine services at the eight commercial seaports on the 2,954km South African coastline.

• The national ports authority is responsible

for the safe, effective and efficient economic functioning of the national port system, which it manages in a landlord capacity.

• The national ports authority operates

within a legislative and regulatory environment created by the National Ports Act (Act No. 12 of 2005).

• The national ports authority’s service
• ffering is targeted at mainly port users

which include terminal operators, shipping lines, ship agents, cargo owners and clearing & forwarding agents.

• The distance around the port of Durban is

21 km.

• Rail tracks in the port total 302 km.
• The port has 58 berths which are
• perated by more than 20 terminals.
• Over 4,500 commercial vessels call at the

Durban port each year.

TRANSNET NATIONAL PORTS AUTHORITY

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TNPA Overview – Core functions

(as per National Ports Act Section 11)

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OVERVIEW

20

• Transnet Port Terminals provides cargo

handling services at 16 terminal facilities in seven ports to a wide range of customers including shipping lines, freight forwarders and cargo owners.

• Operations are in containers, bulk,

break-bulk and automotives.

• We invest in state-of-the-art cargo

handling equipment (ship-to-shore cranes, straddle carriers, rubber-tyre gantries, tipplers, conveyors) and manage the logistics interface with inbound and

• utbound rail and trucking carriers.
• In 2011/12 we are proud of the

implementation of the NAVIS-terminal

• perating system and the certification of

all our terminals to ISO standards.

• Transnet Port Terminals aims to be

Africa’s port operator of choice.

In line with Transnet’s new market demand strategy (MDS) and related investments, Transnet’s Port Terminals are currently expanding in response to growing business in the country. Expansion includes creating storage capacity, the replacement of old equipment and upgrading of software.

TRANSNET PORT TERMINALS

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TRANSNET PORT TERMINALS

#1 Terminal Operator in Africa Company 2011 Total Throughput ‘000 TEU 2011 Equity Throughput (‘000 TEU) Equity TEU as % of Regional Throughput 1 Transnet 4,403 4,403 18.07% 2 APM Terminals 7,640 4,236 17.39% 3 Bolloré Africa Logistics 3,348 1,671 6.86% 4 DP World 2,094 1,193 4.89% 5 Port Said CCHC 922 922 3.79% 6 Damietta CCHC 809 809 3.32% 7 CMA CGM/Terminal Link 1,218 661 2.71% 8 Cosco Pacific 3,247 649 2.67% 9 Hutchison Port Holdings 949 548 2.25% 10 Alexandria CHC 517 506 2.08%

Source: Drewry on Africa

Transnet’s hold on the top ranking for terminal owning/operating companies in Africa will make them an ideal partner.

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TRANSNET PORT TERMINALS

• Financial Management
• Information

Technology

• Capital Planning
• Maintenance
• Research &

Development

• Strategy
• Planning & Monitoring
• Legal
• Corporate Affairs
• Innovation & Continuous

Improvement

• Administration
• Talent Management
• Employee Relations
• Capex Procurement
• Opex Procurement
• Cape Town Containers
• Cape Town MPT
• Saldanha MPT
• Saldanha Iron Ore
• Ngqura
• PE Containers
• PE MPT
• East London
• Sales & Marketing
• Ops Planning

Pru Archary Logan Naidoo Don Maclean Dumisani Khuzwayo Velile Dube Siyabulela Mhlaluka Nombuso Afolayan Ntombeziningi Shezi Michelle Phillips

• Safety
• Health
• Environment
• Risk & Compliance
• Security

delivering freight reliably

• Durban Pier 1
• Durban Pier 2
• Durban Ro-Ro, Point
• Agri & Maydon Wharf
• Richards Bay

Zeph Ndlovu Financial Capital Planning & Maintenance Risk, Security & Sustainability Corporate Services

Human Resources

KZN Operations WC Operations EC Operations Commercial & Ops Planning Procurement

CEO Karl Socikwa

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• TPT’s customers include the leading shipping lines in the world. In total 37

shipping lines call at TPT’s terminals.

• Senior officials from TPT meet regularly with shipping industry associations such as

SAASOA, SAAFF, SASC, CLOF, NAAMSA, PCC, SACC and others representing shipping agents, freight forwarders, cargo agents and vehicle manufacturers.

• TPT’s clients come from all industries – mining, manufacturing, agri-culture etc.
• There is not a single person in South Africa whose life is not being touched on a daily

basis through the goods that are imported or exported through our terminals.

• Customer satisfaction indexes are conducted during monthly Service Level

Agreement sessions between customers and the Commercial and Planning team.

• On average, customers gave us a distinction (80%) in customer service in 2012.
• You’ll seldom find customers that are always 100% satisfied, but in line with our

continuous improvement drive, our intention is to move from good to GREAT in 2013.

• A Customer Perception Survey conducted by IPSOS in July 2012 indicated Customers

rank TPT as the most efficient division in Transnet.

• Customers use our cargo handling services because our services, equipment and

infrastructure are safe, efficient and reliable.

CUSTOMER CENTERED OPERATIONS

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Accolades from Maritime bodies and our customers include:

• Transnet Port Terminals scooped PMR Africa Awards for Service Excellence in

Durban, Richards Bay, Ngqura and Cape Town.

• CNBC awarded TPT the Business Success in Africa Award 2012.
• Africa Ports and Harbours, rated TPT as the Safest Terminal Operator on the African

continent in 2012/13.

• MAERSK, the world’s largest ocean carrier and container shipping company ranked TPT

Port Elizabeth Container Terminal’s performance as the highest in Africa for most moves per hour between January and March 2013.

• Ngqura Container Terminal (NCT) topped the world terminals in year on year

volume growth. The April 2013 edition of Container Port Insight from the Drewry Maritime Research Company listed NCT as the fastest growing container terminal in the

• world. NCT’s volumes more than doubled, peaking at 129% year-on-year in February

2013, thanks to an upsurge in transhipments.

• TPT is ranked as the largest terminal operating company in Africa according to

Drewry Maritime Research.

ACCOLADES FROM 2012/13

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The Business of Port Terminals

%

Containers and Dry Bulk contribute to 85% of TPT’s volume revenue

MARKET SHARE IN MAJOR SECTORS

25

Market Size 4.3m TEU 132mt 670,000 15mt 32mt 10 20 30 40 50 60 70 80 90 100 Competitors TPT

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DURBAN

26

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DURBAN CONTAINER TERMINALS

27 27

PAGE

DURBAN MPT TERMINALS – POINT RORO

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DURBAN MPT TERMINALS – POINT RORO

DURBAN MPT TERMINALS – MAYDON WHARF, AGRI

PAGE 30

RICHARDS BAY

DURBAN MPT TERMINALS – POINT RORO

RICHARDS BAY TERMINALS

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RICHARDS BAY DRY BULK TERMINALS

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PORT ELIZABETH

32

DURBAN MPT TERMINALS – POINT RORO

PORT ELIZABETH

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PORT OF NGQURA

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DURBAN MPT TERMINALS – POINT RORO

PORT OF NGQURA

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PORT OF EAST LONDON

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PORT OF CAPE TOWN

35

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SALDANHA BAY

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PROCUREMENT

MARKET DEMAND STRATEGY

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CUSTOMER CENTRIC STRATEGY

• From an idea to a full business strategy
• Unconstrained Customer

demand

• Improved Vessel

turnaround time

• Process improvement
• Potential identification
• Understanding the

customers’ business

• Client Interaction
• Personal Visits
• 3rd Party Interviews
• Focus Groups
• B2B Inter-action
• CLOF, SAASOA,

SAAFF

• Market Demand Strategy
• Focus on new

capacity

• New Methodology
• ECICS
• Infrastructure

Investment

• People development
• Business Process

Improvement

Idea Diagnostic Strategy Formulation Roll out

PAGE

• Looking ahead, Transnet’s newly formulated Market Demand Strategy (MDS) will see

R300bn spent over the next seven years to create freight capacity before demand across rail and ports infrastructure and equipment in South Africa.

• Of this amount, TPT is poised to spend R33bn and TNPA R46.9bn to boost port
• perations and facilitate unconstrained growth. The MDS sets out how Transnet intends

to grow revenues and business from its operation over the next seven years.

• Transnet also has in place a strategy to grow business outside of South Africa, by

forming partnerships with other ports to enhance efficiency of transport infrastructure, services and key transport corridors to strengthen the economic and social development of the African continent. TPT and TNPA are able to provide

• perational, technical and systems advice to other ports, and improve intermodal

connectivity for existing and new markets in the SADC-region.

• Never before has any company invested so aggressively in creating capacity ahead
• f demand on the African continent.

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INFRASTRUCTURE DEVELOPMENT

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MARKET DEMAND STRATEGY (MDS) OVERVIEW

Capital Investment Create & manage infrastructure capacity ahead of demand.

• Provision of port

infrastructure to facilitate growth

• Improve productive use of

assets Volume growth Enhance the ports’ position as integrated gateways for trade

• Increase/influence the

market Operational efficiency & safety Improve port efficiency

• Improve vessel and

cargo turnaround time

• Enterprise wide Risk

management

• Develop Human

Capital and skills to achieve objectives Financial sustainability Capital delivery & service levels

• Increase volume,

revenue and contain costs

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TPT 10-YR CAPEX HISTORY (Rm)

Investment climbed from R131m in 2001/02, peaking at R3.2bn in 2008/09

TPT Investment (R2,363m)

(5 years: 2001/02 to 2005/06)

TPT Investment (R10,277m)

(5 years: 2006/07 to 2010/11) 2004/05 2003/04 2002/03 2001/02 2005/06 2009/10 2008/09 2007/08 2006/07 2010/11

Port concessioning dilemma Infrastructure backlog catchup & expansion drive Global recession & investment cutbacks

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MARKET DEMAND STRATEGY (MDS) Total Transnet ZAR300bn, TPT ZAR33bn

2012/13 - 2018/19, peaking to ZAR9.5bn in 2016/17

Sishen -Saldanha Export iron ore ZAR25.4bn Port Terminals: ZAR5.82bn TNPA: ZAR4.4bn Cape Town Port Terminals: ZAR465ml TNPA: ZAR3.4bn

7

Durban Multi Product Pipeline ZAR9.4bn Port Terminals: ZAR7.4bn TNPA: ZAR21.5bn Richards Bay corridor Export coal line ZAR32.1bn Port Terminals: ZAR12.4bn TNPA: ZAR5.7bn

2012/13 2011/12 2010/11 2008/09 2013/14 2017/18 2016/17 2015/16 2014/15 2018/19

3200 2337 913 1137 2551 4138 3492 7670 9545 2812 2670

2009/10

Boom- time Ends Global recession Market Demand Strategy TPT R33bn 7yr Investment Plan

Eastern Cape Port Terminals: ZAR6.7bn TNPA: ZAR11.9bn

42

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• The Port of Durban is undergoing a multi-year project to ramp up of capacity ahead of

projected demand.

• Planned extension of the Pier 1 terminal into Salisbury Island will increase current

capacity from 700,000 TEUs to a potential 1.3-million TEUs by 2016.

• Pier 2 capacity is to be increased from 2.1 million TEUs in 2011/12 to 2.5 million TEUs

by 2013/14 and 3.3 million TEUs by 2017/18.

• Berths 203, 204 and 205 on DCT’s North Quay is currently being taken out of service
• ne at a time to undergo deepening and refurbishment over a 74 month period which

started in June 2012.

• Container capacity is also being created in other niche terminals such as the Durban

RO-RO and Maydon Wharf Terminal (a predominantly break-bulk and RORO facility, with specialised capacity to handle containers), through the acquisition of new equipment, such as mobile cranes, and various infrastructure upgrades to deal with the container traffic diverted from DCT during the capacity upgrade.

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CAPACITY AHEAD OF DEMAND

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INVESTMENT IN KZN PORTS IN THE NATIONAL CONTEXT

44

MDS is expected to create 15,000 direct and up to 588,000 indirect job opportunities across the economy

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HUMAN CAPITAL

PORT DEVELOPMENT

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MDS - PORT EXPANSION PLANS Port of Ngqura

AFTER: 2010 Ngqura Container Terminal BEFORE: Coega River mouth Nov-2002

Futuristic Expansion Options

current: 2013 Ngqura Container Terminal

NGQURA CONTAINER TERMINAL

• EVOLUTION OVER 10 YEARS

PAGE 47

DCT Reconfiguration Study 2011

DCT Pier 1 DCT Pier 2 Salisbury Island Navy Base

PORT OF NGQURA

DURBAN MPT TERMINALS – POINT RORO

DURBAN CONTAINERS

• CURRENT LAYOUT

PAGE 48

DCT Reconfiguration Study 2011

Pier 1 with new Salisbury Island infill and deep-water berths Total cost: R 6.3b Pier 2 with deepened berths 203-205 and new tandem cranes Total cost: R 5.6b Consolidated Salisbury Island Navy Base Interim upgrade of Pier 1 + 2 Rail Terminals

PORT OF NGQURA

DURBAN MPT TERMINALS – POINT RORO

DURBAN CONTAINERS

• POSSIBLE FUTURE LAYOUT - 2019

PAGE 49

DCT Reconfiguration Study 2011

Infill between Pier 1 and Pier 2. Durban Container Terminal reconfigured to RMG operation New rail terminals and back-of-port facilities

PORT OF NGQURA

DURBAN MPT TERMINALS – POINT RORO

DURBAN CONTAINERS

– LONG TERM POTENTIAL LAYOUT

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Port of Durban Isipingo Sapref Refinery Old Durban Airport Toyota Factory N2 Freeway Mondi Umlazi

50

PORT OF NGQURA

DURBAN MPT TERMINALS – POINT RORO

FUTURE EXPANSION PLANS FOR DURBAN

• Ex Durban International Airport (DIA) Site

PAGE PAGE

Port of Durban Container Terminals New Dig-Out Port Automotive Terminal Liquid Bulk Terminal Breakwater and Entrance Channel

51

PORT OF NGQURA

DURBAN MPT TERMINALS – POINT RORO

FUTURE PLANS FOR DURBAN

• Artist’s View of the new Dig-Out Port at ex-DIA Site

PAGE PAGE

DURBAN DIG OUT PORT TIMELINE

52

Source: Overview of the Proposed Durban Dig-Out Port Project (DDOP) 10 June 2013, Marc Descoins

PAGE PAGE

CRITICAL MILESTONES

53

Source: Overview of the Proposed Durban Dig-Out Port Project (DDOP) 10 June 2013, Marc Descoins

PAGE PAGE

SINGLE BUOY MOORING

54

Picture by Chris Hoare, courtesy SAPREF

PAGE PAGE

~75% OF SA’s CRUDE OIL IS PUMPED BY SBM

55

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PHASE 1: 4 BERTH CONTAINER TERMINAL

56

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PART OF INTEGRATED LOGISTICS CORRIDOR

57

Upgrading of intermodal terminals & construction of new super terminals within the Gauteng area Rail corridor upgrades to match port expansion plans & significant migration of road to rail freight on corridor Rail corridor upgrades to match port expansion plans & significant migration of road to rail freight on corridor Back-of port logistics facilities and supporting road infrastructure to be developed

PAGE PAGE

INLAND SUPER TERMINALS

58

PAGE PAGE

DURBAN DIG OUT PORT

• SUMMARY

59

STATISTICS

• 800 hectares of land to be acquired
• 70 million m3 of material to be dredged
• 3,5 million tonnes of rock
• 2,5 million m3 of cement
• 52 000 tonnes of reinforcing steel
• 14,5 million m3 earthworks

(Source: Transnet – Durban Airport Site Expansion, Port Panning Study, March 2011)

VISION:

• Largest container port in Africa
• World-class port in terms of efficiency
• World-class supply chain
• Leading-edge “green” port
• “Community” port
• State-of-the-art security

EXPECTED BENEFITS

• Expected Capex Impact on GDP of

R48 billion

• Expected Operational Impact on

GDP of R56 billion (per annum at full operation).

• Income/wages generation during

construction – KZN impact – estimated at R24 billion

• Expected to create approximately

64 000 construction jobs

• Expected to create approximately

28 000 operational jobs

• Reduced total logistics cost

PAGE PAGE

POSSIBLE SERVICE OFFERINGS FROM TRANSNET TO THE DRC

60

• 1. Operator lifting Equipment Training: Theoretical training on Reach Stackers,

RTG's, Tractor Trailer Combo and the use of Spreaders in South Africa followed by a period of practical on-the-job mentorship on site.

• 2. Container Terminal Management Development:

Theoretical training focussed on the processes and procedures related to operation

• f container terminals.
• 3. Management: TPT can second key management resources to assist in the management
• f port terminals in the DRC, either on a consultation or on a longer term contract.

These resources can assist with policy, process and standard operating procedure development.

• 4. lCT: TPT can provide various technology solutions like a tailor-made Terminal Operating

System, lCT-infrastructure improvement or even linking to customs via EDI.

• 5. Capital Projects and Procurement: TPT can assist with:
• a. port expansion feasibility studies using computer simulations.
• b. sourcing equipment via its major suppliers.
• c. provision of maintenance systems and spares.
• 6. Equipment that is being replaced in South Africa before it has exceeded its useful life

could possibly be allocated to projects elsewhere in Africa.

delivering freight reliably

IMPACT OF BRICS