Readying our ports for an onslaught of trade

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Readying our Ports for an Onslaught of Trade

Mr Karl SOCIKWA -Chief Executive of Transnet Port Terminals

AGENDA

TRANSNET PORT TERMINALS: Preparing our Ports for an Onslaught of Trade 2

About Transnet Complementary Port System Transshipments and Regional Integration Market Demand Strategy Infrastructure Development

ABOUT TRANSNET – Who we are

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• 16 Cargo Terminals operating across 7 SA ports

• Revenue R8.5 bn

• Assets R13.5 bn

• 6 324 employees

Supporting

• 8 Commercial ports along 2 798 km of coastline

• Revenue R8.4bn

• Assets R 72 bn

• 3 823 employees

• 20 500 km of railway track

• 182 million tons of freight

• General freight & 2 heavy haul export lines

• Revenue 27.6 bn

• Assets R61.3 bn

• 24 177 employees

• Support TFR for rolling stock and TPT for lifting equipment maintenance

• Revenue 11.2 bn

• Assets R7.6 bn

• 12 570 employees

• 18 billion litres of petroleum products and gas through 3 000 km of pipelines, mainly to Gauteng

• Revenue 2.1 bn

• Assets R19.3 bn

• 630 employees

• R300 billion of capital investments over 7 years

• CSI in Education, Health, Sport, Arts & Agriculture

• Property Management

• Transnet Schools

Capital Projects Transnet

Foundation Property Schools

Transnet Pipelines

(TPL)

Transnet Engineerin

g(TE)

Transnet Freight

Rail (TFR)

Transnet Port

Terminals (TPT)

Transnet National

Ports Authority (TNPA)

Pipelines Rail Ports

TRANSNET PORT TERMINALS: Preparing our Ports for an Onslaught of Trade

Extensive Rail and Port Network

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AGENDA



Complementary Port System


4. Ngqura Containers

3. East London Containers, Breakbulk, Agri-Bulk, Automotives

1. Richards Bay Bulk (Export coal, magnetite, Chrome), Breakbulk

5. Port Elizabeth Containers, Breakbulk, Bulk, Automotives

WESTERN CAPE PORTS

EASTERN CAPE PORTS

KZN PORTS

7. Saldanha Bulk (Export iron

ore), Breakbulk

2. Durban Containers, Breakbulk, Agri-Bulk, Automotives

In 2013/14, TPT handled: 4.5 Million Containers 77.1 Million Tons of Bulk Cargo 11.2 Million Tons of Break-Bulk 0.7 Million New Automotive Vehicles

6. Cape Town Containers, Breakbulk

AGENDA



10 x NEW 18,000 TEU ships on order


Southern Hub for World Shipping

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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


Regional Integration

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Transnet is recognised as the leading logistics service provider in sub-Saharan Africa

The Hubs, Rail Corridors and Shipping Feeder networks depicted on the 2030 vision do not necessarily represent physical ownership by Transnet – the illustration is intended to depict the areas where Transnet will have an operational presence and/or an ability to influence the logistics chain and growth of cargo corridors.


Corridor development

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Building on Inter-Country Agreements…

Bilateral agreements aim to promote inter-operability between SADC railways and typically define operational, safety and technical standards between corresponding countries

…To Develop Corridors

Corridors are a broader concept defined by flows of goods across railway and country boundaries in a seamless manner and require cooperation between multi-role players

…That facilitate Regional Growth


AGENDA



Market Demand Strategy

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• R312.2 bn capital investment program over the next 7 years

• Increase in capacity ahead of market demand despite slower economic growth both locally and internationally, impacting negatively on rail and port commodities

• Continued financial stability and strength – Cash interest cover and gearing ratios remain within target levels

• Significant productivity and operational efficiency improvements

• Shift from road to rail – reducing the cost of doing business and carbon emissions. Expanding rail infrastructure to handle 343.9 m tons from 210.4 m tons

• Enabling economic growth, job creation, skills development, localisation, empowerment and transformation opportunities


Impact on Economy

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

across the economy


AGENDA



TPT Capital Investment History

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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

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 1859 1909

2774 3795 3860

5889

2009/10

Boom-time Ends

Global recession Market Demand Strategy

TPT R33bn 7yr Investment Plan


TPT 10 Year Capital Investment Plan

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Sishen –Saldanha R 7.076bn Iron Ore Expansion (60-

80mtpa): R 6.546bn Other (Bulk): R 529m

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Durban: R 21.390bn: Containers: R 20.191bn Bulk: R 792m Automotive: R 317m Other: R 91m

Richards Bay corridor: R 14.886bn

1 909 2 774 3 795 3 860 5 889

8 720 10 256

3 892 3 391 4 089

0

5 000

10 000

Y1 14/15 Y2 15/16 Y3 16/17 Y4 17/18 Y5 18/19 Y6 19/20 Y7 20/21 Y8 21/22 Y9 22/23 Y10 23/24

Eastern Cape R 3.437bn

Containers: R 2.936m Manganese: R 432m

Bulk: R 70m


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In Conclusion

• South African ports are open 24 hours per day X 7 days per week X 362 days per year

• Synchronise hours of operation to utilise full 24 hours

• Make use of our state-of-the-art truck booking system


Thank you

Readying our ports for an onslaught of trade

Business

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