TRANSNET SOC LTD AND TRANSNET PORT TERMINALS - Visit by delegation - PowerPoint PPT Presentation

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

TABLE OF CONTENTS TRANSNET SOC LTD TRANSNET DIVISIONS MARKET DEMAND STRATEGY PORT DEVELOPMENT PAGE PAGE 1

TRANSNET STATE OWNED COMPANY LTD - OPERATIONAL DIVISIONS Supporting Pipelines Ports Rail Transnet Capital Transnet National Transnet Transnet Projects Transnet Port Ports Freight Rail Pipelines Transnet Engineering Terminals Authority (TFR) (TPL) Foundation (TE) (TPT) (TNPA) Property 8 Commercial 16 Cargo Support TFR for 20 500 km of 18 billion litres of R300 billion of • • • • • • ports along Terminals rolling stock and railway track petroleum capital 2943km of operating across TPT for lifting products and gas investments over • 182 million tons of coastline 7 SA ports equipment through 3 000 next 6 years freight maintenance km of pipelines, Revenue R8.4bn Revenue 7 bn CSI in Education, • • • mainly to General freight & 2 • Revenue 9.8 bn Health, Sport, • Gauteng Assets R56 bn Assets R13.5 bn heavy haul export • • Arts & Assets R8.6 bn lines • • Revenue 1.3 bn Agriculture 3558 employees 6 324 employees • • • 13 020 employees • Revenue 22.2 bn Assets R20.1 bn Property • • Management Assets R54.7 bn • 600 employees • 24 177 employees • PAGE PAGE 2

TRANSNET SOC LTD - STRATEGIC GOVERNANCE FRAMEWORK Mr. Brian rian Molef olefe Grou Gr oup C p Chief hief Ex Exec ecutiv utive Mr. Anoj Singh Chief Financial Officer Mr. . Kh Khomo omotso tso Phihlela Phihlela Grou Gr oup Ex p Exec ecutiv utive: e: Comme ommercial cial Mrs Mr s Nonk Nonkulul ululek eko o Si Sishi shi Grou Gr oup Ex p Exec ecutiv utive: e: Human Hu man R Resou esource ces Mr Mr. Ma Mark Gr k Gregg-Ma Macdo cdonald nald Ms Ms. Nk Nkuli uli Maba band ndla la Grou Gr oup Ex p Exec ecutiv utive: e: Gr Grou oup Ex p Exec ecutiv utive: e: Plann Planning ing an and d Mon onitoring itoring Le Lega gal l Ser Servi vice ces + + Chief hief Ex Exec ecutiv utives es Op Oper erating ting Div ivis isions ions 3 PAGE Mr Tau Morwe Mr Karl Socikwa Mr Siyabonga Gama Mr Richard Valihu Ms Sharla Pillay Mr Charl Möller Ms Raisibe Lepule

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 PAGE 4

STAKEHOLDER ENVIRONMENT Success ultimately depends on a broader South African partnership and support – S.A. citizens will reap benefits Transnet Performance Government departments Regulators Greater collaboration thereby Alignment on tariff creating and enabling environment methodology and regulatory for successful execution of MDS policy to create regulatory certainty Investors Suppliers Continued support Partner with Transnet to deliver and access to cost capital spend and achieve effective funding to localisation and empowerment meet requirements objectives Labour unions Key customers Labour stability to support execution Alignment and collaboration on and competitiveness of SA freight growth and expansion plans Employees logistics system and conversion to Take or Pay Increase in labour productivity contracts to deliver on volume growth and MDS targets 30% PAGE PAGE 5 63%

FINANCIAL AND OPERATIONAL PROFILE Turnover • Would rate in the Top 25 of the biggest SA listed firms ito turnover, if Transnet SOC Ltd was listed $ 7.2 bn • Contributing 1.5% to SA GDP EBITDA • Used to develop infrastrucure and reduce the cost of doing business by increasing capacity and enhancing productivity $ 3 bn • In Top 10 of SA’s biggest firms ito assets Assets $ 24.2 bn • Requires substantial maintenance to continue operating efficiently Capital Investments* • Equates to 75% of the Asset Base $ 40 bn Employment • Transnet ensures the development of skills through training and development 63,725 • 56,354 (excluding contractors) All stats based on 2012/13 Corporate Plan – unless otherwise stated *Planned investments over the next 7 years PAGE PAGE 6

TRANSNET OPERATES AN INTEGRATED PORT, Transnet’s Integrated Network is Underpinned by a Limited Number RAIL AND PIPELINE NETWORK of Key Corridors 20,500 Km Rail Network 182 Million Tons of Cargo pa 4.3 Million Containers pa 18 Billion litres of fuel, oil 1. Richards Bay Bulk (Export coal, magnetite, Chrome), Breakbulk KZN PORTS 2. Durban Containers, Breakbulk, Agri-Bulk, Automotives 3. East London 7. Saldanha Containers, Breakbulk, Bulk (Export iron ore), Agri-Bulk, Automotives Breakbulk 4. Ngqura Containers 6. Cape Town Containers, 5. Port Elizabeth EASTERN CAPE PORTS Breakbulk Containers, Breakbulk, Bulk, Automotives WESTERN CAPE PORTS PAGE PAGE

COMPLIMENTARY PORT SYSTEM delivering freight reliably Bulk – Coal & Minerals Bulk – Iron Ore Containers - Gateway Containers - Refrigerated Cars - Mercedes Containers - Transhipment Bulk – Manganese PAGE 8

SOUTH AFRICA’s ROLE IN BRICS PAGE PAGE 9

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 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 PAGE 10

10 NEW 18,000 TEU SHIPS ORDERED BY MAERSK - To be delivered over next 3 years PAGE PAGE 11

EVOLUTION OF SHIP SIZES Source: Geography of Transport Systems PAGE PAGE 12

NGQURA ROLE AS A HUB PORT FOR TRANSSHIPMENT TRAFFIC IS TO ENABLE REGIONAL INTEGRATION Lome Takoradi Monrovia (Togo) Cotonou (Ghana) (Liberia) (Benin) Abidjan Tema Lagos (Côte San Pedro (Ghana) (Nigeria) d'Ivoire) (Côte d'Ivoire) Douala (Cameroon) Mombasa Libreville (Kenya) (Gabon) Dar es Salaam Pointe Noire (Tanzania) Matadi (Congo) 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) PAGE 13 Source: Team analysis

TRANSNET DIVISIONS PAGE 14

TRANSNET FREIGHT RAIL 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 • The company is made up of the following six technological leadership beyond Africa as well as business units: with-in Africa, where it is active in some 17 countries . Agriculture and Bulk Liquids • Transnet Freight Rail has positioned itself to • Coal Business Unit • Container and Automotive Business Unit become a profitable and sustainable freight • Iron Ore and Manganese Business Unit • railway business, assisting in driving the Mineral Mining and Chrome Business Unit • competitiveness of the South African Steel and Cement Business Unit • economy . PAGE 15

TRANSNET PIPELINES 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 The business handles an annual average continually. throughput of some 18 billion litres of liquid fuel and more than 450 million cubic metres of gases . Transnet Pipelines is acknowledged as one • of the leaders in the development of The liquid products include crude oil as well as pipeline survey technology in South diesel, leaded and unleaded petrol and aviation Africa. turbine fuels. PAGE 16