Mr Brian Molefe Group Chief Executive 07 December 2011 1 PAGE - PowerPoint PPT Presentation

PRESENTATI ON ON THE PORT OF RI CHARDS BAY Mr Brian Molefe Group Chief Executive 07 December 2011 1 PAGE

TABLE OF CONTENTS OVERVI EW FUTURE GROWTH PLANS PORT DEVELOPMENT FRAMEWORK LAND USE STRATEGY LOTHAI R LI NK CAPI TAL PROJECTS 2 PAGE

BREAK DRY BULK – 13 mtpa BULK BREAK BULK – 7.1 mtpa COAL – 67.5 mtpa LIQUIDS – 1.2 mtpa Overview of the Port of Richards Bay developments up to 2011 3 PAGE

% VOLUME OF CARGO PER SA PORT Durban Richards Bay 20% 55% Saldanha Bay 14% Port Elizabeth East London 4% 1% Cape Town 5% Mossel Bay 1% 4 PAGE

TERMI NAL OVERVI EW • Terminal handles mainly export commodities; • Infrastructure includes a 55 km conveyor belt system; • Provides both under-cover (shed) and open stack storage; • Richards Bay is a 93% bulk operation of which 67% is conveyor belted and 26% shipped via skip – only 7% is pure Breakbulk; • Financially & commercially stable with growth potential but Bulk via conveyors equipment unreliability may be restrictive; +- 13 mtpa • There are some clear pockets of excellence, but ops performance is erratic due to equipment breakdowns; • This has a negative impact on efficiency and terminal profit margins; • Some environmental issues exists e.g. soil contamination, dust emissions, etc. Breakbulk • Increasing number of safety incidents is a major concern via skip and initiatives are in place e.g. safety league, PPE, Green +- 7 mtpa Area meetings, Training etc. 5 PAGE

Dry Bulk Plant 705 702 703 701 704 6 Page 7 6 PAGE

CAPACI TY VERSUS DEMAND (million ton per annum) 12.0 10.0 Break-bulk Terminal 8.0 Bulk Imports 8.0 mtpa 6.0 4.0 2.0 0.0 2011/12. 2012/13. 2013/14. 2014/15. 2015/16 2016/17. 2017/18 2018/19. Dry Bulk Terminal Imports: 9.6 mtpa Other Import Coking Coal Alumina & Petcoke Mineral Exports: 11.5 - 14.0 mtpa Sulphur Capacity Woodchip Exports: 2.8 mtpa Increased ECICS Expansion Woodchip excluded Chrome Stack as 1 berth is 18 sufficient for 7-yr demand 12 Bulk Exports 16 ECICS Expansion 10 14 Break Bulk 12 8 10 6 8 6 4 4 2 2 0 0 2011/12. 2012/13. 2013/14. 2014/15. 2015/16. 2016/17. 2017/18. 2018/19. 2011/12. 2012/13. 2013/14. 2014/15. 2015/16. 2016/17. 2017/18. 2018/19. Ferro Chrome Ferro Manganese Chrome Lumpy Other Export Chrome Magnetite Manganese Containers Other Coal / Anthracite Capacity Capacity Presentation to DPE Slide 7

CURRENT PERFORMANCE Performance 2011/2012 Indicators YTD 2010/11 2009/10 2008/9 Tons per hour (Ship 699 664 592 651 loading) Tons per hour (Ship unloading) 445 427 401 427 8 PAGE

RI CHARDS BAY TURNAROUND BUSI NESS DRI VERS: Technical, Planning, Ops Rationalisation due to complexity of the business and similarities in operation, market demand and equipment type • Dedicated Ops team 24/7 Export + storage • Dedicated technical team 24/7 • Berth management 12/7 7 series + • Landside planning neo-bulk Bulk Export & • Rail Storage • RMT • Yard (rail & stack) Import + • Resource allocation 6 series • Gangs Bulk • Equipment Import SAFETY / ENVI RONMENT COMMUNI CATI ON (CULTURE CHANGE) PROCUREMENT 9 PAGE

COAL TERMI NAL Richards Bay Coal Terminal (“RBCT”) @ Glance • 1976 : 2 Berths constructed for 26 mtpa coal over 10 years • 2011 : I ncreased capacity from 76 mtpa to 91 mtpa and 8 million ton stockpile Terminal Size • 6 berths of 1934 metres quay wall, 17.5 m draft 10 PAGE

PY Target 74Mt RBCT EXPORT COAL (74MT SAFELY) : Actual VOLUME PERFORMANCE RAMP UP VOLUMES 2011/12 RAIL VOLUME PERFORMANCE (MT) 7.0 7.0 Average weekly performance 6.7 6.7 6.7 6.7 6.6 6.7 6.5 6.5 6.4 6.2 5.9 1.57 5.6 1.59 1.59 1.57 1.57 1.57 5.3 1.52 1.52 5.2 5.2 1.52 1.49 1.50 5.0 1.43 1.40 1.38 1.36 1.33 1.31 1.21 1.16 2.7 2.3 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 20.17 20.32 19.92 18.44 Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar 13.63 12.83 6.43 Comments:  We are currently achieving on average 28 trains per day Q1 Q Q3 Q 2 4  Weekly tempo is 18% better than before the shut in June. YTD Performance as at 25 October 2011  6.430mT was railed against a budget of 6.723, 4% behind October -6% target.  YTD railings shortfall improved by 1% from September to 6% behind 40.276 37.701 target YTD. 36.175 + 4% 11/ 12 YTD 2010/ 11 11/ 12 YTD Budget Actual Actual (74MT) 11 PAGE

RBCT EXPORT COAL (74MT SAFELY): FOUR CRI TI CAL OPERATI ONAL FOCUS AREAS I nterdependent initiatives (levers) across these focus areas must all succeed to achieve planned ramp-up Train efficiency Operational simplification Resource co-ordination Customer Management • Increase throughput with • Rolling stock utilisation and availability . • Improved consistency • Improved consistency same resources • Improved operating consistency Wagon Ability to load 100 J Crew and loco Train top ups standardisation at 26t/ a in 4 hrs availability Lead locomotives/ Count down 26 t/ a ECP & slow speed Yard processes Schedule and Standardise to 19E siding locomotives Co-ordination Available and reliable infrastructure SAFETY • Introduction of various technologies that serves as early detection systems and rolling stock condition monitoring. • Hot Box detectors • In-Motion weigh bridges • Bearing monitoring • Speed profiling • Wheel measurement systems • Rail stress management 12 PAGE

RBCT EXPORT COAL (74MT SAFELY): Progress on levers + Light Capital Count down • Ermelo improved from 1245 to 879 minutes. Total reduction in cycle time from, 65 to 60 hrs. Richards bay achieved it’s target, but increase from 430 to 530 min, mainly due to the extended work by Yard processes TCP on the departure area. • The average wagons per set improved from 80 to 98 wagons Train top ups Schedule and • A new scheduling tool was developed to for planning trains to the 42 loading sites. siding Co-ordination • The impact of locomotives on train delays improved from 25000 to 13000 minutes per month. Locomotive • Tolerance level is 7500 per month reliability • Crew availability improved from 16 slots on the main line and 34 slots to the mines to 19 and 40 Crew availability respectively. Available and reliable • The impact of infrastructure on train delays improved to 7900 min in August, but deteriorated to 24000 min in October. Tolerance level is 11500 min per month. infrastructure Mine readiness • This lever focus on mines to load 100 ECP wagons with any locomotive type in 4 hrs at 26 t/ axle. 60% mines can accommodate ECP, 71% can accommodate 19E locomotives. Security • The impact of security related incidents on train delays improved and are sustained to well below tolerance of 4400 min Light Capital initiatives Wagon • 400 new wagons build this year were build with ECP brake systems. 75 % of the wagons we use is now ECP standardisation Lead locomotives/ • 16x Diesels were fitted with slow speed. 40x 10E locomotives were fitted with slow speed. All 7E ECP & slow speed locomotives are ECP lead capable. 10E locomotives in progress and should be completed by Apr’12 26 t/ a • Trichardt and Wonderfontein lines were upgraded from 20 to 26 t/ axle. The impact of this is that the overall average load per train increased from 7700 to 8000 ton per train. 13 PAGE

BULK LI QUI D BERTH Bulk Liquid Berth @ Glance • Capacity 1,1mtpa, with new berth capacity will increase to 2.4 mtpa Terminal Size • 2 berths of 600 metres quay wall • Basin dredged to 14 metres 50 000 tonnes DWT vessels 14 PAGE

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PROPOSED SOUTH DUNES COAL 16 PAGE

Foscor Navitrade CTC + Mondi DBT + MPT Small Craft Harbour Bayside Aluminium Berth 606 RBCT South Dunes 17 PAGE

BHP Hillside Current Layout Aluminium CTC & Mondi Silvercell Navitrade Wood Chips Foskor Kusasa Shincel Wood Chips Skoonkaai BHP Bayside Yard Bayview Yard Aluminium Strang Rennies Small Craft Harbour

Current Layout – Harbour BHP Hillside Aluminium Bound I ndustries CTC & Mondi 2010 Silvercell Navitrade Wood Chips Foskor Kusasa Shincel Wood Chips Skoonkaai BHP Bayside Yard Bayview Yard Aluminium Strang Rennies Small Craft Harbour Export Coal from Navitrade

Current Layout – Harbour BHP Hillside Aluminium Bound I ndustries CTC & Mondi 2010 Silvercell Navitrade Wood Chips Foskor Kusasa Shincel Wood Chips Skoonkaai BHP Bayside Yard Bayview Yard Aluminium Strang Rennies Small Craft Harbour Import Sulphur to Kusasa & Foskor

Current Layout – Harbour BHP Hillside Aluminium Bound I ndustries CTC & Mondi 2010 Silvercell Navitrade Wood Chips Foskor Kusasa Shincel Wood Chips Skoonkaai BHP Bayside Yard Bayview Yard Aluminium Strang Rennies Small Craft Harbour Import Alumina to BHP Aluminium

Current Layout – Harbour BHP Hillside CTC & Mondi Aluminium Bound I ndustries Silvercell 2010 Wood Chips Navitrade Foskor Kusasa Shincel Wood Chips BHP Bayside Skoonkaai Bayview Yard Aluminium Yard Strang Rennies Small Craft Harbour Export Wood chips from CTC, Mondi Silvercell & Shincel