TRANSNET PORT TERMINALS

Complimentary port system as part of the Southern Africa port partnering projects – Opportunities for working with ports and terminals in Africa

- Moshe Motlohi, Head of Strategy, Transnet Port Terminals

26 June 2013

TABLE OF CONTENTS

• BRICS

• Transnet State Owned Company Limited

• Africa – Transnet’s Role

• Africa Strategy

Source of picture: www.newstimeafrica.com

• Complimentary Port System

Supporting

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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

• 16 Cargo Terminals operating across 7 SA ports

• Revenue 7 bn

• Assets R13.5 bn

• 6 324 employees

• 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

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• According to Drewry, February year on year figures puts Ngqura as the fastest growing port in the world.

• Ngqura more than doubled its container volumes (up 129% year-on-year) thanks to an upsurge in transhipment.

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Source: Drewry report April 2013 (for period ending Feb 2013) 5

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ACCOLADES FOR EASTERN CAPE TERMINALS - Client Recognition

TABLE OF CONTENTS

• BRICS

• Transnet State Owned Company Limited

• Africa – Transnet’s Role

• Africa Strategy

Source of picture: www.newstimeafrica.com

• Complimentary Port System

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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

TABLE OF CONTENTS

• BRICS

• Transnet State Owned Company Limited

• Africa – Transnet’s Role

• Africa Strategy

Source of picture: www.newstimeafrica.com

• Complimentary Port System

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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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Africa - 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

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TABLE OF CONTENTS

• BRICS

• Transnet State Owned Company Limited

• Africa – Transnet’s Role

• Africa Strategy

Source of picture: www.newstimeafrica.com

• Complimentary Port System

Since 1994 foreign trade in South Africa has increased

South Africa is the second largest producer of gold and is the world's largest producer of chrome, manganese, platinum, vanadium and vermiculit, the second largest producer of ilmenite, palladium, rutile and zirconium. It is also the world's third largest coal exporter. Although, mining only accounts for 3% of the GDP, down from around 14% in the 1980s. South Africa also has a large agricultural sector and is a net exporter of farming products.

Principal international trading partners of South Africa—besides other African countries—include Germany, the United States, China, Japan, the United Kingdom and Spain. Chief exports include corn, diamonds, fruits, gold, metals and minerals, sugar, and wool. Machinery and transportation equipment make up more than one-third of the value of the country’s imports. Other imports include chemicals, manufactured goods, and petroleum

A system is a whole composed of many interdependent and interacting parts (sub-systems) serving a defined purpose

Without a defined purpose it will be difficult to determine whether the system is functioning well

Plays a leading role in facilitating economic growth in South Africa through promoting effective and efficient transportation of goods throughout the logistics chain

Port Terminals plays an integral role in this logistics chain by providing cargo handling services to a wide spectrum of customers including shipping lines, freight forwarders and cargo owners.

COMPLIMENTARY PORT SYSTEM

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Bulk – Iron Ore

Containers - Refrigerated

Bulk – Coal & Minerals

Containers - Gateway

Cars – Mercedes Benz

Containers - Transhipment

Bulk – Manganese

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COMPLIMENTARY PORT SYSTEM

The Port of Richards Bay is one of the world’s leading bulk ports, handling in excess of 80 million tonnes (mainly coal) annually

The Port is one of the world’s leading iron-ore terminal

The Port of Durban occupies a focal point in the transport and logistics chain with 60% of all imports and exports (multi -cargo) passing through the port

The Port East London in the man handles automotive and agri-products .

The Port Ngqura is container handling port. Positioned as a transhipment hub , targeting South- south relay trade and hubbing for Sub Saharan Africa region.

The Port of CT handles containers, mostly reefers, and break bulk cargo

The Port of PE is a multi-cargo ( automotive, manganese, containers, break-bulk cargo)

Most vessels calling SA carry cargo destined to more than one province

◦ Most of these vessels call multiple ports

◦ Customers prefer contracting on guarantee expected departure time within our network of ports, so what happens in one port affects what should happen in other ports

Before the cargo reaches its final destination, it get transported by rail or and road

◦ Performance of these 2 landside transport modes affect the overall port performance

COMPLIMENTARY PORT SYSTEM IN PRACTICE

2009/10 2010/11 2011/12 2012/13 2013/14

People Training NCT staff in Durban

Moved planners to support NAVIS

Moved planners to support NAVIS

Moved OLE’s from PE to NCT

Equipment OLE Training Simulator at NCT

Divert STS cranes from CT

Moved RTG’s from Durban

Ships/Cargo Divert transhipment cargo to NCT

Divert transhipment cargo to NCT

Divert transhipment cargo to NCT

Divert cargo from Durban (berths out)

National Planning Centre

Commercial CTOC CTOC CTOC CTOC for port system

CTOC for port system

TPT OPERATED +ves

Part of complimentary port system

Support SA as a link between SSA and BRICS countries

Commitment to job creation, skills , enterprise & supplier development, etc.

Historical evidence of lowering cost of doing business

Guarantee of providing common user facilities

Capacity planning are aligned with those of TFR

PVT OPERATED -ves

Stand alone terminal No obligation to BRICS agenda

No allegiance and obligation

towards government’s NGP Possible problems related to

Transnet recovering of its investment in NCT

TFR efficiency not their concern

TABLE OF CONTENTS

• BRICS

• Transnet State Owned Company Limited

• Africa – Transnet’s Role

• Africa Strategy

Source of picture: www.newstimeafrica.com

• Complimentary Port System

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Libya

Tunisia

Algeria

Morocco

Western Sahara

Guinea Bissau

Mauritania

Egypt

Chad

Niger Eritrea

Nigeria

Mali

Senegal

Liberia

Togo

Cameroon

Ethiopia Somalia

Djibouti Gambia

Sierra Leone

Guinea

Ivory Coast

Benin

DRC

Gabon Kenya

Burkina

Equatorial Guinea

Congo

Rwanda

Tanzania

Mozambique

Angola

Zambia

Burundi

Malawi

Mada- gascar

Botswana

Zimbabwe Namibia

South Africa

Lesotho

Swaziland

Ghana

Sudan

Central African Republic

Uganda

Source: Africa Team analysis

AFRICA STRATEGY

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