TRANSNET PORT TERMINALS How to develop a successful strategy to - PowerPoint PPT Presentation

TRANSNET PORT TERMINALS How to develop a successful strategy to enable more efficient port operations - Willie Coetsee, Senior Strategist, Transnet Port Terminals 25 June 2013

TABLE OF CONTENTS • Transne ansnet State te Own wned d Com ompan pany Limit mited ed • BRICS ICS • Afr frica ica Str trat ategy egy • Market ket Dema mand nd Strategy ategy • New w Strat ategic egic Directio ection 2 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 Authority ority (TFR) Foundation dation (TE) (TPL) (TPT) (TNPA) Prope perty ty 20 500 km of 18 billion on litr tres of R300 billion on of 8 Commer mmercial 16 Cargo go Suppo port t TFR for • • • • • • railwa way y track petr trol oleum m capita tal ports ts along g Termi minals rolling stock k and TPT for lifti ting g prod oducts ts and gas inve vestmen tments ts over 2943km of oper eratin ting g acros oss 182 million on tons of • equipm pment throu ough gh 3 000 next xt 6 years coastline 7 SA por orts freigh ght km of pipelines, mainten tenance CSI in Educati tion on, Revenue R8.4bn Revenue 7 bn bn • • • General freigh ght t & 2 mainly to • Health th, Sport, t, Revenue 9.8 bn bn • heavy vy haul expo port t Gauten teng Assets ts R56 bn bn Assets ts R13.5 bn bn • • Arts ts & Agricultur ture lines Assets ts R8.6 bn bn • Revenue 1.3 bn bn 3558 employee ployees 6 324 employee ployees • • • Prope perty y • Revenue 22.2 bn bn • 13 020 employee oyees • Assets ts R20.1 bn bn Manage gemen ment • Assets ts R54.7 bn bn • 3 600 employee ployees • 24 177 employee oyees • 3

Shortest Trade Route between Shangh nghai and Sant ntos os is via South Africa 10,972nm = 21 days @ 21 knots via Panama Canal12,967nm = 26 days + transit fee via Suez Canal 13,544nm = 28 days + transit fee 4 4 Source: http://www.searates.com/reference/portdistance/

Lome Cotonou (Togo) (Benin) Tema Lagos (Ghana) (Nigeria) Douala (Cameroon) Mombasa Pointe Noire (Kenya) (Congo) Dar es Salaam Matadi (Tanzania) (DRC) Luanda Tanga (Angola) (Tanzania) Lobito Nacala (Angola) (Mozambique) Beira (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) 5 5 Source: Team analysis

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Transnet Strategy - Journey to Date 2012 2012-2019 19 Market Demand nd Strat ategy y (MDS) S) 2008 2008-2011 11 Continued financial ▪ Quantum um Leap p Strat ategy performance Invest stment nt focus us ▪ on expandin nding Strong financial ▪ 2005 - 2007 2005 2007 capac acit ity y to meet results market demand Focused investment ▪ Capture operational 4-point int Turnaro around und ▪ to eliminate efficiencies Plan backlog; investment Expand funding ▪ lagging volumes sources Laying foundations Pre 2005 ▪ Operational stability ▪ Accele lerat rate South for operational ▪ Effective cost ▪ Africa’s economic performance Pre 4-poin int control and transf sform rmat atio ion by through investment Turnaro around nd Plan reduction of cost support of the NGP and efficiency base improvements Financial instability ▪ Integrated ▪ Robust governance Volatile earnings ▪ ▪ commercial and supporting and cash flows management environment Declining ▪ Strategic asset/ ▪ Disposal of non operational • liability core assets performance management Reignite investment Possibility of • ▪ Sound funding ▪ Concessioning strategy Opera ratio iona nal l Financial cial stabili ility Growt wth stabil bilit ity Source: Transnet Corporate Plan 7

Roll out • Communicate with the Cust stomer omer Strategy tegy • Infrastructure Formulati tion on Investment • People development • Collaborate with the • Business Process Cust stomer omer Improvement • Market Demand Strategy Diagnos osti tic • Focus on new capacity • Potential identification • New Methodology • Understanding the - ECICS customers’ business Idea • Cust stomer omer Interaction • Personal Visits • Unconstrained • 3 rd Party Cust stomer omer demand • Improved Vessel Interviews • Focus Groups turnaround time • B2B Inter-action • Process improvement • CLOF, SAASOA, SAAFF 8

Market Demand Strategy - 2012 to 2019 • R300bn Transnet-wide capital investment Divisional split (Rbn) programme over next 7-years • Expanding rail, port and pipeline infrastructure 47 4 TFR TPT • Increase in capacity to meet market demand 33 TRE TPL 4 11 TNPA Other Other • Continued financial stability and strength 201 • Significant productivity and operational efficiency improvements • Shift from road to rail – reducing the cost of doing business and carbon emissions Change in emphasis • Enabling economic growth • Job creation, skills development, localisation, Maintain 29% empowerment and transformation opportunities 71% • TPT will invest R33bn Expand 9 Source: Africa Team analysis

New Strategic Direction - Supply Chain Integration & Global Expansion Efficient Operations Terminal Glob obal Operations Opera erations ions Expanding the Horizon Integr tegrati tion on into to the e Supply ly Chain in Innovative Value Adding Services 10 Source: Africa Team analysis

Defend & Grow - Strategic Interventions in 4 Areas Grow and defend local turf Terminal Operations Customer Service 11 Source: Africa Team analysis

Integration into the Supply Chain - Forwards & Backwards Integration Expand into logistics services  TPT could expand its active role by forward and backwards integration into the transportation value chain  Potential businesses areas to support a fully integrated supply chain solution are: 1) Inland depots/external distribution warehouses (Value Adding Services) 2) Container lifecycle management (Pre Trip Inspection, Repairs, Modifications) 3) Cargo support (Logistics , SEZ’s) 4) Equipment Maintenance (In-sourcing, Outsourcing to other clients/countries) 5) Private Sector Participation 6) Short Sea Shipping 12

Africa Strategy - 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 13 13 Source:E&Y Report – Time for Africa

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