TRANSNET PORT TERMINALS - South African port trends and current developments in the industry Siya Mhlaluka GM: EC Operations 22 November 2013
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TRANSNET SOC LTD
TABLE OF CONTENTS
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INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
TPT STRATEGIC RESPONSE
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TRANSNET STATE OWNED COMPANY LTD - OPERATIONAL DIVISIONS
• 16 Cargo Terminals operating across 7 SA ports
• Revenue 7 bn
• Assets R12.3 bn
• 6 210 employees
Support
3
• 8 Commercial ports along 2 943km of coastline
• Revenue R8.4bn
• Assets R60.6 bn
• 3 420 employees
• 20 500 km of railway track
• 182 million tons of freight
• General freight & 2 heavy haul export lines
• Revenue 27.6 bn
• Assets R61.3 bn
• 26 850 employees
• Support TFR for rolling stock and TPT for lifting equipment maintenance
• Revenue 11.2 bn
• Assets R7.6 bn
• 12 570 employees
• 18 billion litres of petroleum products and gas through 3 000 km of pipelines, mainly to Gauteng
• Revenue 2.1 bn
• Assets R19.3 bn
• 630 employees
• 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)
Pipelines Rail Ports
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TRANSNET PORT TERMINALS #1 Terminal Operator in Africa
Company 2011 Total Throughput
‘000 TEU
2011 Equity Throughput (‘000 TEU)
Equity TEU as % of Regional
Throughput
1 Transnet Port Terminals 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
Transnet’s hold on the top ranking for terminal owning/operating companies in Africa will make them an ideal partner.
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TRANSNET SOC LTD
TABLE OF CONTENTS
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INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
TPT STRATEGIC RESPONSE
TRANSNET SOC LTD
INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
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55 AFRICAN COUNTRIES , 38 COUNTRIES WITH PORTS
delivering freight reliably Algiers (Algeria)
Cape Town (SA)
East London (SA) Ngqura (SA)
Port Elizabeth (SA)
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Lagos (Nigeria)
Abidjan
(Côte d'Ivoire) Tema, Takoradi (Ghana)
Cotonou (Benin)
Douala
(Cameroon)
Walvis Bay (Namibia)
Libreville
(Gabon)
Pointe Noire
Matadi (Congo)
Lobito
(Angola)
Luanda
(Angola)
Maputo
(Mozambique)
Richards Bay (SA)
Durban (SA)
Dar es Salaam
(Tanzania)
Tanga
(Tanzania)
Mombasa
(Kenya)
Nacala
(Mozambique) Beira
(Mozambique)
Toamasina (Madagascar)
Port Louis (Mauritius)
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SADC CHALLENGES
The SADC region is regarded as the next growth frontier due to its extensive minerals wealth, growth in consumer populations and relatively good infrastructure, road in particular:-
• Key challenges hinders its growth and trade remain strained;
• Poor infrastructure, low density across transport networks, inefficient border processes and fragmented regulatory environments continue to dog it;
• Much of rail and port infrastructure was built for resource extraction rather than to facilitate trade;
• Landlocked countries within the region require efficient transport links to and from the sea in order to enjoy competitive prices for landed goods and exports to global markets;
• Most ports within the region currently operate near capacity and experience delays due to poor integration with other transport modes and slow clearance processes; and
• The SADC region must attain the goal of becoming a seamless, cost-effective, fully integrated and internationally competitive region with appropriate and substantial investments in road, rail and ports to secure the future of the region.
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KEY INTERVENTIONS REQUIRED
Ports to improve Inter-Regional Trade
Development of SADC ports that connect to the world regions – growing maritime trade
Development of ports that are efficient transhipment hubs connected to rail
Terminal and Warehousing facilities
Distribution centres for product to reach markets in the region
Lowering inventory costs
Working together to satisfy
customers to reduce the cost
of doing business to improve
regional competitiveness
RESPONSE TO CHALLENGES
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TRANSNET SOC LTD
TABLE OF CONTENTS
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INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
TPT STRATEGIC RESPONSE
TRANSNET SOC LTD
INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
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10 Transnet Long-term Planning Framework 2012
Global context
• SA’s distance from international markets results in high maritime transport costs
• SA well placed to service Southern African and most BRICS shipping trade routes
• Opportunity to position SA as global transshipment hub focusing on selected trade routes
Regional context
• SA well positioned to serve African east and west coasts by sea
• SA’s rail network provides strategic and common-gauge connectivity to neighbouring SADC countries
• Regional partnerships will stimulate and sustain regional growth
National context
• Gauteng industrial and mining area remains regional production and consumption hub despite distance from nearest ports
• Transnet’s key role is to assist in economic growth through providing appropriate, cost-effective and efficient port, rail and pipeline infrastructure and operations
• Continued emphasis on alignment with New Growth Path, management of Carbon footprint, private-sector participation, and job creation
GEOGRAPHICAL CONTEXT Challenge & Opportunities
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Globalisation
Increased international freight flows a fundamental component of recent changes in global, regional and local economic transport systems
Evidence of recession in small reduction in freight tonnage handled
Some evidence of recovery from the debilitating effects of the past few difficult years (from an economic and trade point of view
Trade Patterns
2007: Industrial and Commercial Bank of China buys 20% stake in Standard Bank (US$5,4 billion) - China’s largest-ever foreign investment
2009: China-South Africa trade reaches $17,9 billion - China becomes South Africa’s largest trading partner
2010: India-South Africa trade reaches US$11,1 billion - increases to US$15 billion by 2015
2014: 26 African countries create a US$1 trillion Southern/Eastern/Central African free trade area
Road/Rail
Road/rail tonnage split almost static
Only profitable rail infrastructure being investing in - large components, notably rural branch lines, not used and becoming increasingly dilapidated
Worldwide trend toward road reversing as rail becomes more competitive as a sustainable transportation mode
Single wagon business being replaced by hub-to-hub
Intermodal solutions becoming increasingly important (especially in manufacturing sector)
Ports
Worldwide trend towards greater specialisation, centralisation, economies of scale, larger vessels and larger parcel sizes
Current upward trend in average size of container-carriers (40 000 DWT) and bulkers (65 000 DWT)
Growing international over-ocean trade to 11 billion tones pa by 2020 at 3% pa year-on-year growth rate
International shipbuilding peaked in 2010 at 96 million tons (previous peak in 1975 at 36 million tons)
Sustainability
Supply-chains used to develop and sustain competitive advantage
Increasing pressure to transform logistics to meet “greening” the requirements
Impact of logistics on climate change more topical because of realisation of immediacy and magnitude of global warming
INDUSTRY TRENDS
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TRENDS IN THE SHIPPING INDUSTRY - 10 New 18,000 TEU ships ordered by Maersk
12 Source: Nick Souza Photography Marine Traffic
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If all the 20 Foot Equivalent Unit (TEU) sized Containers from the world's largest container ship, the Emma Maersk were to be put on one train, the train would be more than 70 km long.
VESSEL SIZES
Generation Years
Produced Capacity
(TEUs) Length
(m) Draft (m)
1st Early Containership 1956-1970 <1000 137-200 9
Fully Cellular 1970-1980 1000-2499 200-225 10
2nd - Panamax 1980-1985 2500-3499 250-290 11-12
Panamax Max 1985-1987 3500-4499 275-294 12.5-13
3rd Post-Panamax 1988-1999 4500-5999 295-320 13-14
Post Panamax Plus 2000-2003 6000-6999 320-340 14-14.5
4th New Panamax 2003-2007 7000-12999 340-350 14.5-15.2
5th Post New Panamax 2006-2012 13000-15999 350-400 15.5
Tripple E 2013 + 18000 TEU’s 400-440 16
Source: Geography of Transport Systems 13
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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
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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
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GREATER COLLABORATION (RATHER THAN COMPETITION) NEEDED BETWEEN AFRICAN PORTS
Monrovia (Liberia)
Lome (Togo)
Port Louis (Mauritius)
Toamasina (Madagascar)
Walvis Bay (Namibia)
Cape Town (SA)
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)
Source: Team analysis
Port Elizabeth (SA)
Lobito
(Angola)
Luanda
(Angola)
Dakar (Senegal)
Algiers (Algeria)
Port Said
(Egypt)
Lagos (Nigeria)
Abidjan
(Côte d'Ivoire) Tema, Takoradi (Ghana)
Cotonou (Benin)
Douala
(Cameroon)
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TRANSNET SOC LTD
TABLE OF CONTENTS
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INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
TPT STRATEGIC RESPONSE
TRANSNET SOC LTD
INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
PAGE
Saldanha Bay
TRANSNET PORT TERMINALS
Cape Town Port Elizabeth
Ngqura
East London
Durban
Richards Bay
CONTAINER TERMINAL
DRY BULK TERMINAL
MULTI PURPOSE TERMINAL
AUTOMOTIVE TERMINAL
An integrated system of complementary regional ports and rail corridors
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PORT OF DURBAN : AT A GLANCE
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DURBAN CONTAINER TERMINALS : EQUIPMENT & INFRASTRUCTURE UPGRADE
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DURBAN MPT TERMINALS – POINT RORO
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DURBAN MPT TERMINALS – POINT RORO DURBAN MPT TERMINALS – MAYDON WHARF, AGRI
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Port of Durban
Isipingo
Sapref Refinery
Old Durban Airport
Toyota Factory
N2 Freeway
Mondi
Umlazi
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PORT OF NGQURA DURBAN MPT TERMINALS – POINT RORO FUTURE EXPANSION PLANS FOR DURBAN - Ex Durban International Airport (DIA) Site
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Port of Durban
Container Terminals
New Dig-Out Port
Automotive Terminal
Liquid Bulk Terminal
Breakwater and Entrance Channel
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PORT OF NGQURA DURBAN MPT TERMINALS – POINT RORO FUTURE PLANS FOR DURBAN - Artist’s View of the new Dig-Out Port at ex-DIA Site
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RICHARDS BAY DURBAN MPT TERMINALS – POINT RORO RICHARDS BAY TERMINALS
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RICHARDS BAY DRY BULK TERMINALS : EXPANSION
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PORT OF EAST LONDON : AUTOMOTIVE BACKBONE
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PORT ELIZABETH
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DURBAN MPT TERMINALS – POINT RORO PORT ELIZABETH : UPGRADE AND EXPANSION
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PORT OF NGQURA
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DURBAN MPT TERMINALS – POINT RORO PORT OF NGQURA : CONTAINER TERMINAL EXPANSION
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MDS - PORT EXPANSION PLANS Port of Ngqura
AFTER: 2010
Ngqura Container
Terminal
BEFORE:
Coega River mouth
Nov-2002
Futuristic
Expansion Options
current: 2013
Ngqura Container
Terminal
NGQURA CONTAINER TERMINAL - EVOLUTION OVER 10 YEARS
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PORT OF CAPE TOWN : EXPANSION PROJECT
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PORT OF SALDHANA : EXPANSION OPPORTUNITIES
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TRANSNET SOC LTD
TABLE OF CONTENTS
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INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
TPT STRATEGIC RESPONSE
TRANSNET SOC LTD
INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
PAGE 33
Integration into the Supply
Chain
Global Operations
TPT NEW STRATEGIC DIRECTION
Local
Operations
Defending and
growing the
Home Turf
Innovative
Value Adding
Services
Expanding the
Horizon
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TPT’s AFRICA STRATEGY IS RESPONSE TO : “THE AU HAS IDENTIFIED 14 CORRIDORS FOR DEVELOPMENT”
1 Kenitra-Casablanca Corridor
2 Greater Cairo Region
3 The Dakar-Touba corridor (Touba-Mbackѐ)
4 The Greater Ibadan-Lagos-Accra (GILA) urban corridor
5 The great Haoussa-Yoruba-Anshanti city triangle (GHAYA-CT)
6 The Emerging Luanda-N’Djamena corridor
7 The Kampala-Entebbe corridor
8 Nairobi metropolitan region
9 Walvis Bay corridor
10 North South corridor (Cape Town-Johannesburg-Harare-Lusaka-Dar es Salaam)
11 The Maputo-Gauteng development corridor
12 Durban development corridor
13 Beira corridor
14 Maputo-Limpopo corridor
Source:E&Y Report – Time for Africa
3
4
2
13
10
12
11 14
9
6
5
7
8 6
6
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GROWTH DRIVEN BY GDP Southern Africa Economic Outlook Source: World Bank Report
Country 2013 2014 2015
Angola 8.2 7.8 7.01
Botswana 5.6 5.5 4.3
DRC 8.2 9.4 20.7
Lesotho 3.9 3.5 3.5
Madagascar 3 4 3.9
Malawi 5.5 6.1 6.5
Mauritius 3.8 4.2 4.7
Mozambique 8.5 8 8
Namibia 4.2 4.3 4.3
South Africa 2.8 3.5 3.4
Tanzania 6.9 7 7.04
Zambia 7.5 7.8 7.7
Zimbabwe 5 5.7 5.4
= Rapid growth areas
TPT AFRICA STRATEGY
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Railway , Ports & Terminal Infrastructure require deliberate intervention
Political Stability and
Will
Skills Development
Sustainable Economic
Growth
Infrastructure
Development
Funding Framework
(Local and international
ventures)
Southern African
countries working
together for regional
growth and
development
Policy & Legislation
ENABLING ENVIRONMENT REGIONAL INTEGRATION
Our President was quite clear on this when he said in 2011:
"Regional and continental infrastructure development is of fundamental importance to the
realisation of Africa IS economic growth and development imperatives. As regional leaders, we
carry a particular responsibility to serve as champions in driving industrial and infrastructure
development both at the regional and continental levels."