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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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Page 1: Drc delegation visit

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 operating 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

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Mrs Nonkululeko Sishi

Group Executive:

Human Resources

Mr. Mark Gregg-Macdonald

Group Executive:

Planning and Monitoring

Mr. Anoj Singh

Chief Financial Officer

TRANSNET SOC LTD

- STRATEGIC GOVERNANCE FRAMEWORK

Mr. Khomotso Phihlela

Group Executive:

Commercial

Ms. Nkuli Mabandla

Group Executive:

Legal Services

+ Chief Executives

Operating Divisions

Mr. Brian Molefe

Group Chief Executive

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

our unique set of assets

• Continuously driving cost efficiencies

• A demonstrated concern for sustainability in everything we do

4

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PAGE PAGE 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 customersLabour 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 objectives

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

of 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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PAGE PAGE 9

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 other 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 of 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 of 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 of 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

overseas 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 offering 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

operated 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)

19

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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 outbound rail and trucking carriers.

• In 2011/12 we are proud of the implementation of the NAVIS-terminal operating 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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PAGE 23

• 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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PAGE 24

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

0102030405060708090

100

Competitors

TPT

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DURBAN

26

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DURBAN CONTAINER TERMINALS

27 27

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DURBAN MPT TERMINALS – POINT RORO

28

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DURBAN MPT TERMINALS – POINT RORO DURBAN MPT TERMINALS – MAYDON WHARF, AGRI

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RICHARDS BAY DURBAN MPT TERMINALS – POINT RORO RICHARDS BAY TERMINALS

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RICHARDS BAY DRY BULK TERMINALS

31

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PORT ELIZABETH

32

DURBAN MPT TERMINALS – POINT RORO PORT ELIZABETH

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PORT OF NGQURA

33

DURBAN MPT TERMINALS – POINT RORO PORT OF NGQURA

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PORT OF EAST LONDON

34

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PORT OF CAPE TOWN

35

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SALDANHA BAY

36

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PAGE 37

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

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• 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 operations 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 operational, 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 of demand on the African continent.

39

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

40

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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

41

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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 one 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.

43

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

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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

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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

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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

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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

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DURBAN DIG OUT PORT TIMELINE

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

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CRITICAL MILESTONES

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

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SINGLE BUOY MOORING

54

Picture by Chris Hoare, courtesy SAPREF

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~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

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INLAND SUPER TERMINALS

58

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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

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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

of container terminals.

3. Management: TPT can second key management resources to assist in the management

of 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.

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delivering freight reliably

IMPACT OF BRICS

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