1

South Africa’s ports system & position enables it to access to South-South trade, Far East trade, Europe & USA, East & West Africa regional trade - Antwerp Trade Delegation Visit

November 2014

PAGE

Contents• Overview

• Introduction

• Transnet SOC Ltd

• Transnet’s Business Units

• Transnet National Ports Authority

• Transnet Port Terminals

• Infrastructure Development

• Land & Buildings

• Equipment

• Training & Development

2

• 'welcome_to_the_anthropocene'_earth_animation_1280x720.mp4

SOUTH AFRICA- Southern Hub for World Shipping Routes

Shortest Trade Route between Shanghai and Santos is via South Africa 10,972nm = 21 days @ 21 knotsvia Panama Canal12,967nm = 26 days + transit fee

via Suez Canal 13,544nm = 28 days + transit fee

Source: http://www.searates.com/reference/portdistance/ 3

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

SOUTHERN HUB FOR WORLD SHIPPING ROUTES

4

PAGE

10 NEW 18,000 TEU SHIPS ORDERED BY MAERSK- To be delivered over next 3 years

DBN EL PE CPT Ngqura

Draft 11.9m 10.2m 11.7m 13.8m 16.5m

5

PAGE

3 SHIPS OF >13,000 TEU IN CMA CGM’s FLEET

CMA CGM Jules Verne (16,020 TEU)Joined the Far East Europe Trade in May 2013

Monrovia (Liberia)

Lome(Togo)

Port Louis (Mauritius)

Toamasina(Madagascar)

Takoradi(Ghana)

Abidjan(Côte d'Ivoire)

Lagos (Nigeria)

Cotonou(Benin)

Walvis Bay (Namibia)

Tema(Ghana)

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

Lobito

(Angola)

Luanda

(Angola)

Dakar (Senegal)

Algiers (Algeria)

Port Said

(Egypt)

Ngqura Hub and Spoke Model

7

PAGE

TRANSNET STATE OWNED COMPANY LTD- OPERATIONAL DIVISIONS

• 16 Cargo Terminals operating across 7 ports

8

• 8 Commercial ports along 2 954 km of coastline

• 20 500 km of railway track

• 182 million tons of freight

• General freight & 2 heavy haul export lines

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

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

• 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

Engineering

(TE)

Transnet

Freight Rail

(TFR)

Transnet

Port

Terminals

(TPT)

Transnet

National

Ports

Authority

(TNPA)

PAGE

7. SaldanhaBulk (Export iron ore),

Breakbulk

6. Cape TownContainers,

Breakbulk

4. NgquraContainers

3. East LondonContainers, Breakbulk, Agri-Bulk, Automotives

1. Richards BayBulk (Export coal, magnetite, Chrome), Breakbulk

5. Port ElizabethContainers, Breakbulk, Bulk, AutomotivesWESTERN CAPE PORTS

EASTERN CAPE PORTS

KZN PORTS

9

2. Durban (70mt)Containers, Breakbulk, Agri-Bulk, Automotives

Transnet’s Integrated Network is Underpinned by a Limited Number

of Key Corridors

TRANSNET PORT TERMINALS OPERATES A COMPLIMENTARY PORT SYSTEM

• 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 27 000 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 70% of Sub Saharan 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

10

• 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 Petronetestablished 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.

• TPL spent R23.4bn on the new 555km Multi-Product Pipeline between Durban and Heidelberg.

The business handles an annual average throughput of some 16.7 billion litres of liquid fuel and more than 494 million cubic metres of gases across 3,000 km of pipeline.

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

TRANSNET PIPELINES

11

• 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

12

TRANSNET NATIONAL PORTS AUTHORITY

13

PAGE

• Overview

• Transnet National Ports Authority

• Overview

• Core Functions

• Port of Durban

14

• 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 terminal operators.• Over 4,000 commercial vessels call at the Durban

port each year.

TRANSNET NATIONAL PORTS AUTHORITY

15

PORT OF DURBAN

Busiest port in Africa in

terms of vessel calls (4000+ pa).

58 Berths. 40 commercial

vessels berthed at any given

time.

Ranks 2nd in Africa in

terms of container through-

put.

76.158 million tons of cargo in 2012/13

61% of all container

imports and exports

through the port of Durban

Trucks 116,884

Cars 136,268

Pedestrians 197,141 pm

Focus on Containers, Cars, Liquid

Bulk and Cruise

Industry

Total land and water

area of 1 854 ha.

The distance around the port is 21 km. Rail

tracks total 302 km

Third busiest

container port in the Southern

Hemisphere

Durban is SA’s second

most important economic complex 16

LAYOUT OF PORT

TNPA Overview – Core Functions (as per National Ports Act Section 11)

Op

tim

all

y s

erv

e t

he

ec

on

om

y

Master planner

Landlord

Marketer &

administrator

Controller of ports

navigation

Coordinator with

other state

agencies

Change agent

Promote the use, improvement and development of ports, and control land use within the ports, having the power to lease port land under conditions it determines

Plan, improve, develop and maintain port infrastructure

Make and apply rules to control navigation within port limits and approaches, ensure protection of the environment and ensure safety and security within port limits

Ensure that adequate, affordable, equitable and efficient port services and facilities are provided for port users

Ensure non-discriminatory, fair, transparent access to port services and facilities; advancement of previously disadvantaged people; promotion of representivity and participation in terminal operations; enhanced transparency in port management

Advise on all matters relating to the port sector, and liaise with all stakeholders

Controller of ports

services &

facilities

Ensure that port services and facilities are provided, and may enter into agreements or licence other parties to provide these

17

PAGE

Major commodities Imported in 2013

Containers 39,1%

Petroleum 41,8%

Vehicles 5,7%

Wheat 2,3%

Fertilizer 1,7%

Steel 1,6%

Cement 1,5%

Anim/Veg Oil1,4%

Chemicals 1,3%

Rice 1,0%

Agric Prod 0,7%Mech/Elec Appl0,4%Coal

0,3%Misc 1,3%

Other 19,1%

PAGE

Containers 63.6%

Petroleum 6.6%

Manganese 8,5%

Maize 4,7%

Vehicles 4,4%

Coal 3,4%

Wood Chips 1,6%

Steel 1,5%

Chemicals 1,3%Chrome Ore 1,1%

Sugar 0,9%Woodpulp0,9%

Citrus Fruit0,5%Misc 1,0%

Other 29,7%

Major commodities Exported in 2013

PAGE

Durban Annual Container Volumes (Import/Export)

+9%

+5%

-6%

1.1841.200

2009

1.265 1.264

1.378

2010

1.343

2011

1.3021.266

2012

1.318

-6%

1.315

2013

+7%

+1%

+4%+6%

Imports

Exports

Y-O-Y growth Imports

Y-O-Y growth Exports

(’000 TEU”s)

Total 2.384 2.529 2.721 2.568 2.633

PAGE

Durban Annual Automotive Volumes (Import/Export)

(‘000 units)

161.007

341.752

2012

164.865

291.838

2011

146.545

280.284

2010

126.471

251.410

2009

114.517156.370

-2%+13%+16%

+10%

+17%

+4%+11%

+61%

2014

154.860

231.515

2013

Exports

ImportsY-O-Y growth Imports

Y-O-Y growth Exports

Total 270.887 377.881 426.829 456.703 502.759 YTD 386.375

PAGE

Durban Annual Dry Bulk Volumes (Import/Export)

(mtons)

4,289

2,880

5,534

3,959

6,179

2009

4,325

2010

4,579

3,581

2011

+35%

+7%

-13%

-8%+21%

+24%

2014

5,753

3,128

2013

6,802

3,460

2012

+23%-10%

Exports

Imports

Y-O-Y growth Imports

Y-O-Y growth Exports

Total 7.177 8.160 10.505 9.494 10.262 YTD 8.881

PAGE

Durban Annual Break Bulk Volumes (Import/Export)

(m tons)

860870

1.762 1.815

2013

1.100

2.299

2012

1.2001.556

2011

1.5431.553

2010

1.884

2009

-8%-22%

-18%+7%

+48%

0%

+80%

-1%

2014

1.029

Exports

Imports

Y-O-Y growth Imports

Y-O-Y growth Exports

Total 2.632 2.745 3.096 2.756 3.399 YTD 2.844

PAGE

Durban Annual Liquid Bulk Volumes (Import/Export)

( m kl)

2011

-14%+16%-8%-5%

-6%+5%-1%+9%

2014

2.277

20.418

2013

2.670

23.974

2012

3.097

25.461

2.676

24.172

2010

2.908

24.371

2009

3.072

22.286

Exports

Imports

Y-O-Y growth Imports

Y-O-Y growth Exports

Total 25.358 27.279 26.848 28.558 26.644 YTD 22.695

PAGE

South Africa – Belgium Trade - 2013

• 2013 – South African Exports to Europe = R197.274bn

• 2013 – South African Imports from Europe = R299.387bn

PAGE

Trade between South Africa and Europe

26

Exports to Europe Imports from Europe

Germany 20% Germany 34%

UK 16% UK 11%

Netherlands 15% Italy 9%

Switzerland 12% France 7%

Belgium 10% Spain 6%

France 5% Netherlands 5%

Italy 5% Belgium 4%

Other 16% Other 24%

Total 100% Total 100%

PAGE

1. Point MPT and Ro Ro Terminal

2. Maydon Wharf

3. Bayhead rail yards

4. Durban Containers Pier 1 and Pier 2

5. Island View liquid bulk precinct

6. Bluff

1

2

3

6

5

4

Port of Durban – Current Layout

PAGE

4

1. North quay berth deepening

2. Pier 1 expansion with Salisbury Island infill

3. Maydon Wharf quaywall reconstruction

4. Island View berth reconstruction

5. Point Passenger Terminal

32

1 5

Port of Durban – Short Term Layout

PAGE

Market Demand Strategy (MDS) Total Transnet ZAR300bn, TNPA ZAR47bn, Port of Durban ZAR21bn

Sishen -Saldanha

Cape Town

7

Durban

Richards Bay corridor

Boom-time Ends

Global recession

Market Demand Strategy

R47bn TNPA 7yr Investment Plan

Eastern Cape

2012/132011/122010/112009/10 2017/182016/172014/15 2015/162013/14 2018/19

3,177.4242,033.3381,305.323586,692537,282

TRANSNET PORT TERMINALS

30

PAGE

• Overview

• Transnet Port Terminals

• Overview

• Saldanha

• Cape Town

• Port Elizabeth

• Ngqura

• East London

• Durban

• Richards Bay

31

• 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.

• 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 is Africa’s biggest container terminal operator in terms of volumes handled.

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

32

Ngqura – Fastest Growing Terminal in the World

• According to Drewry 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.

Source: Drewry report April 2013 (for period ending Feb 2013)33

PAGE

34

TPT RATED #1 IN AFRICA BY MAERSK

34

35

BENCHMARK OPERATIONAL EFFICIENCY

- Moves per Gross Crane Hour

Commentary

Study done by Maersk Vessels internationally – published on 25 Feb 2012:

▪ Top Performers internationally reflect an average of 32 moves per hour

▪ On average normal performers reflect a norm of 23 moves per hour

▪ TPT Container Terminals currently reflect GCH targets of between 28 and 32.

▪ Port size, ship size, labour restrictions and other factors do not fully explain the differences.

▪ Roger Kerr, CEO New Zealand Business Roundtable

26242424

222221

0

5

10

15

20

25

30

Ø 23,3

USA West Coast

Sri LankaNorth EuropeAustraliaIndonesiaIndiaNew Zealand

272828323334

42

0

10

20

30

40

50

MalaysiaThailandJapan

Ø 32,0

Singapore South KoreaChina Taiwan

Benchmarking Exercise - Ave Performing Terminals

Benchmarking Exercise - Top Performing Terminals

Benchmarking against other terminals

Source: Roger Kerr, New Zealand Business Roundtable – Information from Maersk New Zealand

• CTCT = 32• NCT = 28• DCT = 24

35

PAGE

Terminal Operator2011 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, University of Illinois 2013 study

Transnet’s hold on the top ranking for terminal owning/operating companies in Africa will make them an ideal partnership candidate for bigger, international companies.

TRANSNET REMAINS ATOP AFRICA’S RANKINGS- Independent study done by University of Illinois

36

37

The Truth about Port Charges

37

Source: http://ecom.hamburgsud.com/ (Nov 2014)

0

50

100

150

200

250

300

350

400

450

Terminal Handling Charges

$ per cont

PAGE 38

Terminal Handling Charges in Relation to Supply Chain Costs

Documents preparation

Customs clearance

and inspections

Port's Cargo Dues

Terminal Handling Charge

Inland transportation and handling

Total Supply Chain Costs

$355 $90 $163 $122 $1 100 $1 830

R 4 000 R 1 000 R 1 976 R 1 343 R 12 291 R 20 500

20% 5% 9% 7% 60%

Source: World Bank Report http://www.doingbusiness.org/data/exploreeconomies/south-africa/trading-across-borders/

39SOURCE: World Bank, Cost of doing business, 2009

2009 Exchange rate based on 1 USD = 7.8 HKD = 85.6 JPY = 31.9 TWD = 7.3 ZAR

- Port and terminal handling charges

COMPARATIVE PORT COSTS

Terminal Handling Charges600

450430

400

360 350 350

316

284265 260

225

190 181165

135

85 75

Saudi Arabia

Thai-land

Malay-sia

Indo-nesia

Taiwan,BrazilGer-many

Ne-ther-lands

Hong Kong

South Africa

ItalyAus-tralia

BelgiumUnited Kingdom

United States

NamibiaArgen-tina

Canada

US (Long Beach)Financially self-supporting; receives little operating and capital grants

Germany:Pricing based on depreciated asset base

China:Significant subsidies from government, e.g., funding Yangshan port expansion (Shanghai) (~ 3 bn EUR)

Netherlands:Receives operating grants as income, also receives grants on investments

South Africa:Fully self-funding system, incl. expansion

USD per export TEU

39

40Source: Study conducted by PwC 2013

Sea transport ~90% of total costPort & Terminal Handling Charges ~10%

Unit cost of Shanghai sea leg

Port calling cost - Arrival

Terminal handling charges per t/s TEU

Port calling cost - Departure

Unit cost of Santos sea leg

COMPARATIVE PORT COSTS

- Port fees relative to Sea transport

Total cost per 20ft (ZAR) with MSC LUCIANA (11,660 TEU)

40

PAGE

SALDANHA BAY

41

PAGE

PORT OF CAPE TOWN

42

PAGE

PORT ELIZABETH

43

PAGE4

4

PORT OF NGQURA

44

PAGE

PORT OF EAST LONDON

45

DURBAN

46

46

DURBAN CONTAINER TERMINALS

47

PAGE

DURBAN MULTI PURPOSE TERMINALS – MAYDON WHARF, AGRI

DURBAN MULTI PURPOSE TERMINALS – POINT RORO

49

RICHARDS BAY

50

50

RICHARDS BAY DRY BULK TERMINALS

5151

INFRASTRUCTURE DEVELOPMENTS IN DURBAN

52

PAGE

• Overview

• Port Infrastructure Development

• Harbour Entrance Widening

• Passenger Terminal

• Pier 1 Infill

• Pier 2 North Quay lengthening

• Maydon Wharf Quay Wall Reconstruction

• Durban Dig-Out Port

53

Port of Durban – Aerial View

54

55 TRANSNET AUDITED RESULTS 2014

56

Pier 2 North Quay Berth Deepening and Lengthening

Deepen Approach Channel

and basin from 12.8m CDP to

16.5m CDPLengthen berths 203 to 205 from

914m to

1 210mDeepen berths 203 to 205

from 12.8m CDP to 16.5m CDP

Re-use Lot

10

Casting

Yard 57

Pier 1 Phase 2 Salisbury Island Infill

Deepen Approach Channel

and basin from 12.8m CDP to

16.5m CDPInfill between Pier 1 and Salisbury

IslandDeepen and lengthen berth 104

Construct new deep water berths

101 to 103

58

Durban Container Terminal : Current

Existing Durban Container Terminal (DCT)

Pier 1

Existing Durban Container Terminal (DCT)

Pier 2

59

Salisbury Island

Navy Base

60

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

DURBAN CONTAINERS - POSSIBLE FUTURE LAYOUT - 2019

60

61

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

DURBAN CONTAINERS – LONG TERM POTENTIAL LAYOUT

61

Port of Durban – Pier 1 Salisbury Island Before

62

Port of Durban – Pier 1 Salisbury Island After

63

Reconstruction of Steel Sheet Pile Quay Walls

at Maydon Wharf

Reconstruct steel sheet pile quay

walls at Maydon Wharf.

Maydon Wharf berths1 to 4 and 12

to 14 are to be reconstructed.

Reconstruction of Maydon

Wharf berth 12 has been

completed.

64

Port of Durban Passenger Terminal : Artist Impression

65

Proposed Durban Dig Out Port Site

66

67

Isipingo

Sapref Refinery

Old Durban Airport

Toyota FactoryN2 Freeway

Mondi

Umlazi

6

7

FUTURE EXPANSION PLANS FOR DURBAN- Ex Durban International Airport (DIA) Site

67

68

Container Terminals

New Dig-Out Port

Automotive Terminal

Liquid Bulk Terminal

Breakwater and Entrance Channel

6

8

68

FUTURE EXPANSION PLANS FOR DURBAN- Ex Durban International Airport (DIA) Site

EQUIPMENT INVESTMENT IN PORT TERMINALS

69

PAGE

• Overview

• Terminal Equipment Investment

• Ngqura Phase 2B

• Richards Bay C&D slabs

• Cape Town STS Cranes

• DCT Straddle Carriers

• DCT Stack Rehabilitation

• DCT Refurbishment of STS Cranes

• DCT RMG’s

• Durban Staff Facilities

70

Cape Town (5%)R 3.1bn

Saldanha (11%)R 6.6bn

Richards Bay (25%)R 15.6bn

Durban (52%)R 31.5bn

SLDR 7.1bn(15%)

TPT CAPITAL PROJECTS IS A CRUCIAL PART OF EXECUTING TPT’s MARKET DEMAND STRATEGY, WE ARE INVESTING AHEAD OF DEMAND

ExpansionR 36.4bn

(59%)

ReplacementR 25.0bn (41%)

Ngqura (5%)R 3.0bn

PE (2%)R 1.5bn

ELR 34m

1 909 2 847 4 238 5 116 5 297 5 760 7 703 6 846 7 445

14 228

0

5 000

10 000

15 000

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

Ran

d M

illio

n

TPT 10-year Capital Investment Plan: R61.4 billion

71

Ngqura Container Terminal Phase 2A

Background

The Port of Ngqura is the first new commercial port to be developed in South Africa since Richards Bay.

Construction commenced in 2001 and the container terminal commenced operations in October 2009.

In September 2011, Transnet Board approved a further capital investment for the expansion of the Ngqura Container Terminal from a 2 berth

super structure to a 3 berth super structure (Phase 2A) at an ETC of R1.1 billion. This investment included the acquisition x4 STS Cranes , x18

RTG’s, Haulers and Trailers and development Infrastructure (RTG’s Workshop, Mess and Ablutions). All equipment has been handed over.

Hand-over of the Infrastructure is planned for Mar 2015.

Planned Forecast

Completion Mar-15 Mar-15

Benefits

NCT Expansion Phase 2A will increase the terminal's capacity from 800,000 TEU's to 1.5 m TEU's, in line with demand projections.

The increased capacity will enable the terminal to improve efficiencies, via faster vessel turnaround times and reduce berth

occupancy to below 65%.

Creation of

capacity

72

Open Storage Area C&D West Development

Background

The increased volumes of cargo being handled at the Richards Bay Terminal have put the storage capacity under pressure.

CD West for additional bulk storage capacity.

Planned Forecast

Completion Apr 15 Apr 15

Benefits

Increase in the terminal’s capacity for the storage & export of Chrome Ore of 1.6 - 2.5 mtpa (depending on the number of

stockpiles). The design of the area allows for efficient stockpiling by maximizing the available area.

Creation of

capacity

73

2x STS Crane for CTCT

Background

CTCT required to be restored to an 8-crane fleet to assist the terminal to improve its service delivery and recovery time for wind delays. The

additional 2x STS cranes will also increase the quayside capacity from 1.0m to 1.3m TEU pa which is aligned to the future stack capacity of the

terminal. The 2x cranes have been fully erected and placed onto the quayside. Endurance testing is expected to start on 5 Oct-14.

Planned Forecast

Completion Sep-14 Oct-14

Benefits

The additional 2x cranes will assist the terminal in improving its SWH which will result in quicker vessel turn-around. The 8-crane

fleet will also improve the terminal’s wind recovery time. The quayside capacity increases from 1.0m to 1.3m TEU pa, in line with

the future stack capacity.

Creation of

capacity

74

15 Straddle Carriers at DCT

Background

5x straddle carriers arrived in DCT 27 Feb 14 and have been commissioned and handed over. 10x straddle carriers have been shipped and all

the units are estimated to be delivered in South Africa (DCT) by end September 2014. The estimated commissioning and hand over is mid-

November 2014.

Planned Forecast

Completion Oct-14 Nov-14

Benefits

The replacement of the end-of-life machines will improve reliability of the straddles & result in less machine downtime.

Lower cost on maintenance & fuel due to latest technology of diesel electric machines.

Improved GCH & reduced TTT (Truck Turnaround Time)

Sustaining of

capacity

75

DCT Stack Rehabilitation

Background

The paving in certain of DCT P2’s stack area had cracked and failed. The ensuing settlement resulted in unsafe operations and damage to

equipment. The replacement if the scour protection at DCT South Quay by the TNPA provided an opportunity for DCT to capitalize on the

outage to replace all the failed paving. Phase 1 of the works has was completed ahead of schedule and Berth 108/9 was handed over on 14-

Jul-14. Phase 2 occupation was received as planned on 09-Jun-14 and in progress with planned completion by 10-Oct-14.

Planned Forecast

Completion Mar-15 Jun-15

Benefits

Restore DCT’s capacity to 2.5m TEU pa

Improve safety and reduce damage to straddle carriers & injury to personnel

Sustaining of

capacity

76

Mid-life Refurb of 4x Liebherr STS Cranes

Background

A wide-ranging structural repair and painting together with a replacement of major mechanical & electrical components

on the South Quay Liebherr cranes was completed within the south quay outage period.

Planned Forecast

Completion Jun-14 Oct-14

Benefits

Safety improvements in terms of Code 29 & OHS Act.

Improvement reliability and reduced maintenance costs.

Ensure the design useful life of the cranes is achieved

Sustaining of

capacity

77

Replace RMG's at Rail Terminal (x2) DCT

Background

The contract for the replacement of the 2x end-of-life Demag RMG’s at DCT P2 was awarded to TEREX. Contractor delays and NUMSA strike

has resulted in later completion of these 2x new RMG’s. The 1st RMG (604) is expected to start its endurance test by mid October 2014.The

2nd RMG (605) is anticipated to be commissioned by end November 2014.

Planned Forecast

Completion Jun-14 Nov-14

Benefits

New cranes will be more reliable resulting in the overall demand availability for the rail terminal improving.

New cranes will have latest technology and high cycle times.

The total crane life of new cranes will increase to 20 Years as opposed to 10 years for refurbish cranes.

Sustaining of

capacity

78

Berth 107 Staff Facility at DCT Pier 1

Background

Pier 1 staff were previously accommodated at temporary containerized type facilities. This project was sanctioned as part of

employee care initiatives to accommodate for 150 staff at Pier 1 over 3 shifts by building a new permanent facility at Berth 107

Benefits

A new modern & permanent facility for the staff operating at Berth 107

The modern facility included the following:

• Mess & ablution accommodating 150 staff over 3 shifts

• Kitchen and eating area for the staff including food locker facilities

• Open plan offices for operations personnel

• Boardroom

Planned Actual

Duration Jan-14 Jan-14

Staff Facilities

79

TRAINING & DEVELOPMENT - APEC

80

PAGE

• Overview

• Training and Development

• Relationship with APEC & ITMMA

• International Courses

• Local Courses

81

82

TPT PARTICIPATION – APEC INTERNATIONAL COURSES

• Port Management (PM)

• Port Security (PS)

• IT & EDI in Port Business (IT)

• Legal Aspects in Port Operations and Trade (LAPOT)

• Port Engineering (PE)

• Container Terminal Management (CTM)

• Port Logistics (PL)

• Bulk Break Cargo (BBC)

• Port Environmental Policy & Technology (PEPT)

83

TPT PARTICIPATION – APEC LOCAL COURSES

• Port Security (PS)

• Bulk Cargo

• Port Environmental Policy & Technology

• Container Terminal Management

• Port Management

• Port Operations and Concessions

• Port Logistics

84

TPT DELEGATES 2014

Local Programme Total delegates

Port Management 9

Safety and Environmental 37

48

International Programmes Total delegates

Port Logistics 7

Port Environmental Policy 4

Safety & Health 6

17

QUESTIONS

END