TRANSNET PORT TERMINALS Complimentary port system as part of the - PowerPoint PPT Presentation

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 • Transne ansnet t Sta tate e Owne wned d Com ompan pany Limit mited ed • BRICS ICS • Africa ica – Transnet’s Role • Complime omplimentary ary Port System em • Africa ica Strateg tegy Source of picture: www.newstimeafrica.com

Supporting Pipelines Rail Ports Transnet t Capital ital Transnet t Natio ional l Transnet t Proje jects ts Transnet t Transnet t Port t Ports ts Freigh ght t Rail Transnet t Engin ginee eerin ring Pipelin lines Terminals als Authorit ority (TFR) Foundation dation (TE) (TPL) (TPT) (TNPA) Prope perty ty 8 Comm mmercial 16 Cargo go Suppo port t TFR for 20 500 km of 18 billion on litr tres of R300 billion on of • • • • • • ports ts along g Termi minals rolling stock k and railwa way y track petr trol oleum m capita tal 2943km of operati ting g acros oss TPT for lifti ting g prod oducts ts and gas inve vestmen tments ts over 182 million on tons of • coastline 7 SA por orts equipm pment throu ough gh 3 000 next xt 6 years freigh ght mainten tenance km of pipelines, Revenue R8.4bn Revenue 7 bn bn CSI in Educati tion on, • • • mainly to General freigh ght t & 2 • Revenue 9.8 bn bn Health th, Sport, t, • Gauten teng Assets ts R56 bn bn Assets ts R13.5 bn bn heavy vy haul expo port t • • Arts ts & Agricultur ture Assets ts R8.6 bn bn lines • Revenue 1.3 bn bn 3558 employee ployees 6 324 employee ployees • • • Prope perty y • 13 020 employee oyees Revenue 22.2 bn bn • • Assets ts R20.1 bn bn Manage gemen ment • Assets ts R54.7 bn bn • 600 employee ployees • 3 24 177 employee oyees •

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

6 ACCOLA COLADES DES FOR OR EASTER ASTERN N CAPE E TER ERMINA MINALS LS - Client Recognition 6

TABLE OF CONTENTS • Transne ansnet t Sta tate e Owne wned d Com ompan pany Limit mited ed • BRICS ICS • Africa ica – Transnet’s Role • Complime omplimentary ary Port System em • Africa ica Strateg tegy Source of picture: www.newstimeafrica.com

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 8 8

TABLE OF CONTENTS • Transne ansnet t Sta tate e Owne wned d Com ompan pany Limit mited ed • BRICS ICS • Africa ica – Transnet’s Role • Complime omplimentary ary Port System em • Africa ica Strateg tegy Source of picture: www.newstimeafrica.com

Monrovia Takoradi Lome Cotonou (Liberia) (Ghana) (Togo) (Benin) San Pedro Abidjan Tema Lagos (Côte (Côte (Ghana) (Nigeria d'Ivoire)) d'Ivoire) ) Douala (Cameroon) Mombasa Libreville (Kenya) (Gabon) Dar es Salaam Pointe Noire (Tanzania) Matadi (Congo) Luanda Tanga (Angola) (Tanzania) Lobito Nacala (Angola) (Mozambiqu Beira e) (Mozambique) Toamasina (Madagascar Maputo ) (Mozambique) Port Louis Walvis Bay (Mauritius) (Namibia) Richards Bay (SA) Durban (SA) East London (SA) Ngqura (SA) Cape Town Port Elizabeth (SA) (SA) 10 10 Source: Team analysis

Africa - The AU has Identified 14 Corridors as the Main African Corridors that Needs Development 2 3 4 5 6 1 Kenitra-Casablanca Corridor 2 Greater Cairo Region 8 3 The Dakar-Touba corridor (Touba-Mback ѐ ) 6 7 4 The Greater Ibadan-Lagos-Accra (GILA) urban corridor 5 The great Haoussa-Yoruba-Anshanti city triangle (GHAYA-CT) 6 6 The Emerging Luanda- N’Djamena corridor 7 The Kampala-Entebbe corridor 8 Nairobi metropolitan region 10 9 Walvis Bay corridor 10 North South corridor (Cape Town-Johannesburg-Harare-Lusaka- 13 Dar es Salaam) 9 14 11 The Maputo-Gauteng development corridor 11 12 Durban development corridor 12 13 Beira corridor 14 Maputo-Limpopo corridor 11 11 Source:E&Y Report – Time for Africa

TABLE OF CONTENTS • Transne ansnet t Sta tate e Owne wned d Com ompan pany Limit mited ed • BRICS ICS • Africa ica – Transnet’s Role • Complime omplimentary ary Port System em • Africa ica Strateg tegy Source of picture: www.newstimeafrica.com

 Since 1994 foreign ign trade in South h 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 COMPLIMENTARY PORT SYSTEM Bulk – Coal & Minerals Containers - Gateway Bulk – Iron Ore Cars – Mercedes Benz Containers - Refrigerated Containers - Transhipment 1 Bulk – Manganese 6 16

The Port is one of the world’s leading iron - ore terminal 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 of Durban occupies a focal point in the transport and logistics chain with 60% of all import rts s and export rts (multi - cargo) passing through the port The Port East London in the man handles automotive and agri-products . The Port of PE is a multi-cargo ( The Port of CT handles The Port Ngqura is container handling port. automotive, containers, mostly reefers, Positioned as a transhipment hub , manganese, containers, and break bulk cargo targeting South- south relay trade and break-bulk cargo) hubbing for Sub Saharan Africa region.

 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/ 09/10 10 2010/ 10/11 11 2011/ 11/12 12 2012/ 12/13 13 2013 13/14 14 People le Training Moved Moved Moved NCT staff in planners to planners to OLE’s from Durban support support PE to NCT NAVIS NAVIS Equipment ment OLE Divert STS Moved Training cranes from RTG’s from Simulator at CT Durban NCT Ships/C /Cargo argo Divert Divert Divert Divert cargo National transhipme transhipme transhipme from Planning nt cargo to nt cargo to nt cargo to Durban Centre NCT NCT NCT (berths out) Commerci cial al CTOC CTOC CTOC CTOC for CTOC for port system port system

Part of complimentary port system Stand alone terminal   No obligation to BRICS agenda Support SA as a link between SSA   and BRICS countries No allegiance and obligation  Commitment to job creation, skills  towards government’s NGP , enterprise & supplier Possible problems related to development, etc.  Transnet recovering of its Historical evidence of lowering  investment in NCT cost of doing business TFR efficiency not their concern  Guarantee of providing common  user facilities Capacity planning are aligned with  those of TFR TPT OPERATED +ves PVT OPERATED -ves

TABLE OF CONTENTS • Transne ansnet t Sta tate e Owne wned d Com ompan pany Limit mited ed • BRICS ICS • Africa ica – Transnet’s Role • Complime omplimentary ary Port System em • Africa ica Strateg tegy Source of picture: www.newstimeafrica.com