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NATIONAL PORTSAUTHORITY

HIGHLIGHTS � Construction of port operational centres at the ports

of Durban, East London, Port Elizabeth, Saldanha and Richards Bay.

� 59% completion of the tug building project (target: 49%).

� The vessel traffic services (VTS) systems upgraded at all ports.

� A new TSHD dredger delivered in January 2016 and is operational.

� Planned phases of the Integrated Port Management System (IPMS) implemented across the port system.

� A 5% reduction in port security issues during the year. � Automated mooring units installed at the Port

of Ngqura. � 38 CSI learners attended the division’s GPR, course

and 13 were enrolled for maritime studies. � The division achieved a level 3 B-BBEE score.

BUSINESS OVERVIEWThe National Ports Authority operates as a port landlord managing, controlling and administering the South African ports system. Core services include the maintenance and provision of port infrastructure, as well as the provision of maritime operations, such as pilotage, towage (tug assistance), dredging, and lighthouse and navigational services. The Operating Division owns and operates Transnet’s commercial ports, which are situated in Durban, Richards Bay, Cape Town, Port Elizabeth, Ngqura, Mossel Bay, Saldanha and East London. The Port of Nolloth is leased in its entirety to De Beers Consolidated Diamond Mines.

South African ports owned by the National Ports Authority facilitate 98% of South Africa’s global trade, and service the shipping feeder network connecting the west and east coasts of Africa.

Approximately 31% of the country’s GDP is derived from exports, and 32% is derived from imports. Major commodities handled at the ports include coal, iron ore, containers, automotives, steel, fruit, ferrochrome, petroleum and chemical products, and manganese ore.

Port operations are key platforms for executing efficient services to customers and advancing economic activity. The National Ports Authority, in its role as regulator, is required to ensure that efficient port services are rendered to port users. As part of its oversight responsibilities, the National Ports Authority ensures compliance by port users with all of the conditions contained in operators’ agreements and licences.

REGULATORY ENVIRONMENTNational Ports Authority, as a regulated entity, is required to ensure that the execution of its strategy is in compliance with the National Ports Act (No. 12 of 2005) (Ports Act). The Ports Act requires the National Ports Authority to assume the role of a regulator of port users, whilst also being regulated by the Ports Regulator.

There are three levels of regulation and control within the port environment:1. Regulatory oversight and compliance;2. Economic regulation; and3. Efficiency of port operations.

For the 2016 financial year tariff application, the Ports Regulator determined as follows:

� An overall increase in average tariffs of 4,8%. � All cargo dues increased by 3,6%, except:

ú Dry bulk cargo dues for coal, iron ore and manganese, which increased by 6%; and

ú Marine services and related tariffs increased by 6%.

PERFORMANCE CONTEXTThe National Ports Authority seeks to create sustained economic value in terms of its policy mandate. It does so through its strategic role as national provider of port infrastructure capacity, and efficient and competitive port services. The execution of the Authority’s mandate is undertaken within a regulated environment, whereby the National Ports Authority assumes the role of a regulator of port users, while also being regulated by the Ports Regulator.

As regulator of port services, the National Ports Authority controls all port facilities and services to ensure, among others, that the security, safety and efficiencies of the total port system are maintained and improved at all times. As a regulated entity, the Ports Regulator

exercises economic regulation over the National Ports Authority and handles complaints against the Operating Division. From a strategic perspective, the National Ports Authority also assumes the role of market integrator to create value across the supply chain.

Against this backdrop, the National Ports Authority focused its strategic efforts during the year on managing its regulatory obligations, delivering on its planned infrastructure programme, improving the integration of operational performance and enhancing customer relations as part of the total value proposition to facilitate market segment competitiveness.

The South African port system provides services to maritime customers in five market segments, which include containers, dry bulk, liquid bulk, break-bulk and automotives. Plans are in place to enhance other value-adding services to further harness the ocean economy and, more specifically, to develop opportunities for marine engineering.

The Operating Division continues to implement key elements of its operating strategy, which is geared towards the reduction of ship turnaround time, vessel waiting time and cargo dwell times, as well as the better utilisation of port assets and, thereby, the reduction of port costs.

The National Ports Authority has established the necessary governance, processes and resources to exercise oversight to improve port performance.

OPERATIONAL PERFORMANCECore initiatives for 2016

� Introduce a phased implementation of the new pricing strategy (revised tariffs) in the tariff application for the 2017 financial year.

� Implement the capital and maintenance programme. � Execute Operation Phakisa programme (oil and gas

and ship repair facilities). � Revise port development framework plans. � Develop operational centres in planned phases across the

port system, with Durban and Head Office as pilot sites. � Implement port operational performance standards

(terminal and marine). � Oversee the tug building programme. � Upgrade vessel traffic services (VTS) systems at all ports. � Improve ‘safe manning’ procedures to allow crews to

perform inter-port voyages. � Fully implement customer interaction platforms. � Develop Rail Operator Performance Standards (ROPS)

for Transnet Freight Rail and Terminal Operators having rail infrastructure and operations within terminal boundaries.

Figure 1: Eight operational ports under the National Ports Authority’s control

RICHARDS BAY

DURBAN

EAST LONDON

NGQURAPORT ELIZABETHMOSSEL BAY

CAPE TOWN

SALDANHA

PORT NOLLOTH

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2015 2016 2016 2017Key performance area and indicator Unit of measure Actual Target Actual Target

Dry Bulk

– Coal (RBCT) hours 43 46 41 46– Iron ore (Saldanha) hours 46 50 47 50– Manganese (Port Elizabeth) hours 70 78 69 78

Berth occupancy

– Durban % 70 70 – 80 69 65 – 75– Cape Town % 68 60 – 70 61 60 – 70– Port Elizabeth % 52 65 – 75 33 30 – 40– Ngqura % 57 70 – 80 40 50 – 60

Berth utilisation (%)

– Durban % 70 70 – 80 89 85 – 95– Cape Town % 62 70 – 80 71 70 – 80– Port Elizabeth % 42 65 – 75 67 60 – 70– Ngqura % 56 75 – 85 84 75 – 85– Richards Bay % – – n/a n/a– East London % – – n/a n/a

Market segment competitiveness

Volume and revenue growth

Containers (000 TEUs) 000 TEUs 4 699 4 905 4 439 4 952Break-bulk (million tons) million tons 9,46 8,60 7,57 7,30Liquid-bulk (million kilolitres) million kilolitres 42,78 36,80 41,70 40,85Dry-bulk (million tons) million tons 171,60 172,70 170,79 180,14Vehicles (units) units 668 322 650 821 697 048 736 294

Tariffs

Average tariff increase % 6,6 4,8 0,0 6,2

Sustainable developmental outcomes

Human capital

Training spend % of personnel cost 7,79 8,1 8,14 9,97Employee turnover % 2,53 4,00 6,00 4,00Employee headcount permanent 4 189 4 909 4 349 4 996Revenue per employee R million 2,32 2,20 2,56 2,4

Risk, safety and health

Cost of risk % of revenue 2,38 3,00 3,00 3,1DIFR rate 0,41 0,60 0,71 0,75

Overview of key performance indicators

Table 1: Overview of key performance indicators

2015 2016 2016 2017Key performance area and indicator Unit of measure Actual Target Actual Target

Financial sustainability

EBITDA margin % 65,0 63,1 65,4 61,1Operating profit margin % 50,1 46,6 51,0 43,7Gearing % 37,7 33,7 42,30 34,6Net debt to EBITDA times 3,4 2,8 3,04 3,04Return on average total assets – excluding CWIP % 6,77 7,2 7,61 6,9Asset turnover – excluding CWIP times 0,14 0,2 0,15 0,16Cash interest cover times 3,03 3,4 4,01 2,8

Capacity creation and maintenance

Capital expenditure R million 2 874 3 426 2 938 2 800

Operational excellence

Productivity

Anchorage waiting time

– Durban average hours 41 40 33 n/aPier 1 new new new 32Pier 2 new new new 40

– Cape Town average hours 31 34 23 32– Port Elizabeth average hours 37 33 16 30– Ngqura average hours 32 45 20 32– Richards Bay average hours 39 60 42 60

Average ship turnaround time

– Durban containers STAT hour 51 55 46 n/aPier 1 new new new 43Pier 2 new new new 53

– Cape Town containers STAT hour 27 29 24 27– Port Elizabeth containers STAT hour 26 28 17,1 28– Ngqura containers STAT hour 34 43 23 30– Richards Bay containers STAT hour 78 90 67 85–East London containers STAT hour 50 55 74 61

� Develop Haulier Operator Performance Standards (HOPS) based on the pilot study at the port of Durban to address road linked efficiency issues and port congestion.

� Implement an operations leadership programme. � Develop an integrated port management system (IPMS). � Execute security audits aligned to the international

ships and security code.

� Improve occupational safety and environmental protection.

� Execute a skills development and training programme. � Promote the South African port system globally. � Advance the execution of section 56 processes to

exploit new business opportunities. � Improve real estate occupancy levels across the port

system.

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Financial performance review

Table 2: Financial performance for the 2016 financial year

31 March 31 March2016 2015 %

Salient features R million R million change

Revenue 11 144 9 718 15– Containers 3 778 3 652 3– Break–bulk 250 285 (12)– Dry bulk 1 070 1 004 7– Liquid bulk 698 648 8– Automotive 534 521 2– Clawback 136 (751) (118)– Other 4 678 4 359 7

Operating expenses (3 860) (3 404) 13– Energy costs (436) (440) (0,1)– Maintenance (340) (260) 30– Materials (76) (76) –– Personnel costs (2 074) (1 909) 9 – Other (934) (719) (29,9)

Profit from operations before depreciation, derecognition, amortisation and items listed below (EBITDA) 7 284 6 314 15Depreciation, derecognition and amortisation (1 602) (1 447) 11Profit from operations before items listed below 5 682 4 867 17Impairments and fair value adjustments 244 188 30Net finance costs (1 837) (1 785) 3Profit before taxation 4 089 3 270 25Taxation (1 354) (931) 45Profit after taxation 2 735 2 339 17Total assets (excluding CWIP) R million 74 849 73 824 1

Profitability measuresEBITDA margin1 % 65,4 65,0 0,4Operating margin2 % 51,0 50,1 0,9Return on average total assets (excluding CWIP)3 % 7,6% 6,8% 0,8Asset turnover (excluding CWIP)4 times 0,15 0,14 –Capital investments5 R million 2 938 2 874 2Revenue excluding clawback 11 008 10 469 5

EmployeesNumber of employees (permanent) number 4 349 4 189 4Revenue per employee R million 2,56 2,32 10

1 EBITDA expressed as a percentage of revenue.2 Profit from operations before impairment of assets, fair value adjustments, net finance costs and taxation expressed as a percentage of revenue.3 Profit from operations before impairment of assets, fair value adjustments, net finance costs and taxation expressed as a percentage of average total asset

excluding capital work in progress.4 Revenue divided by average total assets excluding capital work in progress. 5 Actual capital expenditure (replacement + expansion) excluding borrowing costs.

PERFORMANCE COMMENTARYFinancial sustainability

� Revenue increased by 15% to R11 144 million (2015: R9 718 million), due mainly to the positive impact of the clawback deviation (R888 million). Excluding clawback, revenue showed an increase of 5% to R11 008 million (2015: R10 469 million). This increase is primarily attributable to the following revenue items: ú Property, R133 million or 13% increase; ú Port Authority, R43 million or 5% increase; ú Marine, R40 million or 4% increase; ú Ship repair, R11 million or 23% increase; and ú Cargo dues, R219 million or 4% increase.

� Net operating expenses increased by 13% to R3 860 million (2015: R3 403 million), mainly as a result of the following cost increase items: ú Labour, excluding training, R136 million or 7%

increase; ú Training, R30 million or 18%; ú Environment, R80 million or 1 021% increase; ú Legal, R55 million or 59% increase; ú Maintenance, R76 million or 23% increase; and ú Leasing, R99 million or 62% increase.

� EBITDA was 4,5% above budget (R6 972 million) and showed a year-on-year improvement of 15% at R7 284 (2015: R6 314). The improvement is largely attributable to focused cost-containment initiatives.

Capacity creation and maintenance

� National Ports Authority’s capital expenditure was below budget by 3,07% at R2 938 million. The coming financial year will see more efficient management of the capital expenditure programme to achieve set targets.

� Various Operation Phakisa’s initiatives were undertaken, and have advanced at different levels.

� Transnet has adopted a Private Sector Participation (PSP) model for Operation Phakisa new port facilities on a design-fund-build-operate-transfer basis, namely: ú Establish purpose-built oil and gas infrastructure

and appoint facility operators at the Port of Saldanha Bay; and

ú Implement strategic prioritised projects: Richards Bay and East London.

� During the reporting period, Transnet approved the relevant business cases for the abovementioned initiatives, as well as associated strategic options for execution in April 2016, with operational readiness of facilities targeted for between January 2017 and December 2019.

� The Operating Division will allocate R2 billion towards the Marine Transport and Manufacturing (MTM) initiative – Refurbishment of Existing Ship Repair Facilities – at South African ports by 2019. National Ports Authority invested R272 million of this allocation towards refurbishment and upgrade projects at ship repair facilities in the Ports of Durban, East London, Port Elizabeth, Mossel Bay, Cape Town and Saldanha Bay. Noteworthy milestones for the period include the refurbishment of the outer caisson of the Durban Dry Dock at a cost of R35 million, as well as the commissioning of the 40-ton Boat Hoist and 90-ton slipway at the Port of Port Elizabeth.

� During this period, 177 new construction jobs were created, while the Transnet B-BBEE and Supplier Development policies were applied in the procurement of goods and services. The project pipeline for this focus area extends into 2019 and includes major civil, electrical and mechanical upgrades.

� The Operating Division continued to support the development of oil liquid bulk port infrastructure with the awarding of rights to Burgan Cape for a liquid bulk terminal at the Port of Cape Town and preferred bidder status to OTGC for a liquid bulk terminal at the Port of Ngqura. The Division also awarded rights to Sunrise Energy to develop and operate an LPG terminal at the port of Saldanha.

� National Ports Authority took delivery of the first in the series of new tug boats built in Durban in support of designation and localisation of marine manufacturing.

Looking ahead � National Ports Authority plans to invest R2,8 billion

in 2017 and R44,9 billion over a seven-year period to 2023 in capacity creation, infrastructure renewal and modernisation projects, including: ú Acquiring nine tugs for Richards Bay, Durban, Port

Elizabeth and Saldanha at R403 million in 2016 and 2017;

ú Reconstruction of sheet pile quay walls at Maydon Wharf at R298 million in 2016 and 2017;

ú Operationalise Ngqura for Containers at R245 million in 2016 and 2017;

ú Acquire a new grab hopper dredger at R176 million; and

ú Acquire a new Cutter suction dredger at R126 million. � National Ports Authority intends to maintain momentum

on Operation Phakisa projects: ú Transnet reaffirmed its commitment towards Operation

Phakisa in the Marine Transport and Manufacturing (MTM) sectors, with significant progress on the ‘3-feet Plan’ initiatives in ship repair, boat building, rig repair and offshore oil and gas exploration support.

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Market segment competitiveness

� Various operational initiatives were undertaken to improve customer services such as the implementation of port operational performance standards and rollout of operational centres.

� The Operating Division also implemented integrated technology in the marine business as part of a broader drive to create a smart port system.

� Aquaculture was further promoted, with the alignment of port water leases with aquaculture permit periods at the Port of Saldanha, as well as the leasing of land at the Port of Port Elizabeth for the manufacture of catamarans for export in support of local production.

Looking ahead � Fully operationalise customer interaction platforms

across the port system. � Introduce a market-centric culture through customer

service training and ‘know your customer’ campaigns. � Implement inflation-linked capped tariff increases for

the containers and automotive segments.

Operational excellence

Grow volumes and market share � Container volumes were 5,5% below the prior year’s

actual volumes achieved at 4 439 000TEUs (2015: 4 699 165TEUs). The lower-than-anticipated volumes are attributable to the global economic downturn, especially in South Africa’s critical import and export markets, which resulted in service consolidation, blank sailings and limited parcel sizes. Some services were lost to competing ports on the African continent. In addition, port draft limitations in the port of Durban and Port Elizabeth also contributed to the poor performance. Transshipment volumes declined significantly as shipping lines streamlined routes to minimise port calls and reduce output costs.

� Port volumes were 0,5% below the prior year’s actuals for dry bulk commodities at 170,8 million tons (2015: 171,6 million tons). The main factor contributing to reduced volumes was the decline in commodity prices, which caused the majority of dry bulk producers to taper off production and exports. Manganese volumes were hardest hit, as producers battled strikes, retrenchments and unprecedented low market prices. Iron ore was, in turn, negatively impacted by slow demand in China for the majority of the 2016 financial year. The year has been particularly trying for the coal industry as a result of the economic crisis worldwide, as well as China’s waning interest in sourcing coal from South Africa. This has forced coal suppliers to diversify

the coal product, supplying to India and Pakistan as well as burgeoning markets such as Morocco and Egypt, in North Africa and Northeast Africa respectively. The introduction of these new markets was the main reason for coal finishing overall at 0,2% above budget, with Richards Bay Coal Terminal contributing a favourable 1,8%, equivalent to 1 285 499 tons. This is due to the terminal being able to source and deliver a product mix to new markets, as opposed to relying too heavily on China.

� The Automotive Production and Development Programme (APDP) continued to provide valuable support to total vehicle production, with the increased production notably boosting the export market. The domestic market saw negative deviation, mainly driven by the dwindling economy, as well as increased unemployment, increased interest rates and general car price increases. As a result, existing export contracts backed by the APDP, and the weaker rand, were the main reasons for the positive net deviation for the financial year. All forecasts point to an even harder year ahead, with economic growth revised to below 1% and reduced vehicle sales forecasted at 6,1%.

� Petroleum products were 2,5% below the prior year’s actual volumes, however, imports were 15% up, with exports finishing the year at 28% above the current year’s budget. Petroleum-sector performance can be attributed to both local consumption, in view of the distressed economy, and the oil price, which went to its lowest prices in recent times. The industry imported for local consumption and exported residual product to regional partners. The positive 28% export deviation was also due to the combination of the weak local currency, combined with the low oil price, which encouraged increased trading of the product. The continuation of the trend is dependent on the oil price being low, which is unlikely as all indications reflect that the price will recover.

Improve operational efficiency and service delivery � Average Anchorage Waiting Time: All ports performed

exceptionally well compared to performance targets (average hours waiting). The favourable performance was attributable to minimal disruptions from equipment failures, as well as the continuous monitoring of terminal operations and the engagement of all stakeholders with a view to enhance operational efficiency. With the introduction of the Mooring Master System at the port of Ngqura, which has successfully minimised the impact of long waves and excessive wind disruptions during the winter season, the port has realised major improvements in operational efficiencies.

� Ship Turnaround Time (STAT): All ports performed exceptionally well and exceeded their set targets, except for the Port of East London, with an average of 74 STAT hours (target: 55 STAT hours). The overall favourable performance at the ports is a result of regular performance monitoring and improvement. National Ports Authority has reviewed the definition of the STAT metric key performance indicator (KPI) to reflect the actual cargo handling performance of a vessel while alongside, which will address the year’s lower STAT performance at the Port of East London going forward.

Looking aheadAchieve operational excellence through the successful implementation of an integrated Business Execution System that effectively and seamlessly integrates the following four building blocks: Strategy Deployment, Performance Management, Process Excellence and High Performance Work Teams. To achieve operational excellence, the following programmes are being designed:

� Fully operationalise the Joint Operating Centre (JOC); � Improve availability of the marine service fleet

through the fleet management programme; � Commission an automated mooring system (AMS) and

associated measures to mitigate operational disruptions; � Embed integrated performance management systems

and operationalise joint operations centres; � Perform quarterly assessments of the performance

of terminal operators against Terminal Operator Performance Standards (TOPS) for the current TOPS Year 3, and issue performance criteria for TOPS Year 4. The iterative improvement in the incisiveness of the TOPS targets in Year 4 will ensure that TOPS is more reflective of the performance levels expected by customers at South African terminals;

� Revise and reissue Marine Performance Standards (MOPS) for shipping lines and marine services, giving greater recognition to the queueing time of vessels relative to marine operations resources;

� Set Rail Operator Performance Standards (ROPS) for Freight Rail (operating trains within port limits) and terminal operators having rail infrastructure and operations within terminal boundaries. The focus will fall on port train turnaround times in order to ensure efficient flow of trains at the port within given operating models;

� Commence a pilot study in Durban to address the efficient movement of freight from port to road transport so as to minimise port congestion. This will form the basis for Haulier Operator Performance Standards (HOPS); and

� Commission JOCs – with a pilot site in Durban and at Head Office – to facilitate improved performance of the wider port supply chain. JOCs for the remaining ports will be commissioned in a phased sequence following the completion of the pilot; and

� Improve the capacity of operational personnel to deliver by implementing Operations Leadership Programmes.

Human capital

� National Ports Authority achieved a permanent headcount of 4 349 employees (2015: 4 189).

� Black employees represented 84,9% of the total employee base (2015: 83%).

� Female employees represented 32% of the total employee base (2015: 30%).

� People with disabilities represented 2,2% of the total employee base (2015: 2,6%).

Organisational readiness

High-performance culture and environment � Integrated performance standards and operations

centres were implemented during the year. � Planned skills development programmes for YPTs, and

marine engineering technicians were successfully completed.

� Kaizan continuous improvement training – focusing on 5s and goal alignment – were undertaken across the ports system and at Head Office.

� Various environmental initiatives were successfully completed in the management of biodiversity, air quality and waste management.

� Port security audits were conducted across the port system, with a 5% reduction in reported incidents.

Skills development (training) � Overall, 887 learners were exposed to the business in

an effort to create awareness of the ports environment among the youth.

� The Operating Division facilitated the following training in terms of critical skills: ú 11 Engineers; ú 16 Technicians in training; and ú 11 Pilots in training.

� Overall, 42 new intakes of Cadets were introduced to the Marine Cadet Programme.

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Health and safety � A DIFR of 0,71 was recorded (target: 0,60), with

31 disabling injuries. More than 50% of the incidents were manageable within work areas.

� In the year ahead, more emphasis will be placed on investigating incidents, sharing of lessons, improving of management visibility and the roll-out of various awareness campaigns at operational levels to improve health and safety awareness.

� National Ports Authority endeavoured to ensure that safety systems are ‘alive and active’ in the workplace through the Chief Executive’s ‘Commitment to Safety Policy Statement’, which is aligned to the Transnet Group Chief Executive’s Safety Statement. In this way, commitment to safety within operations is driven from a senior level.

� Incident management and monitoring is performed on a weekly basis and forms part of the division’s business performance reviews.

Governance and ethics

Environmental stewardship � As part of our waste management initiative to improve

waste management practices, enhance environmental awareness and behavioural change in waste management, the following was achieved: ú 12,2 tons of waste was collected during the annual

coastal clean-up programme undertaken by the ports;

ú 2,6 tons of paper and plastics were recycled by the Port of Durban; and

ú 173 truck and off-the-road (OTR) tyres were collected and recycled from the ports through the use of the Recycling and Economic Development Initiative of South Africa (REDISA).

� The Biodiversity Management Programmes which include ecological monitoring of the marine environment, ongoing implementation of the Invasive Alien Plants Eradication project, protecting threatened habitats in ports and working with key government stakeholders to develop management programmes for port marine environments that are of national importance. The intended outcomes of these efforts are: ú Protection of ecological habitats of conservation

importance on National Ports Authority land; ú Restoration of indigenous vegetation and improved

ecological status thereof; ú Compliance with environmental regulatory

requirements; and ú Minimising risks to ecosystems, human health and

the economy that are associated with the degrading quality of biological diversity.

Social accountability � Overall, 38 learners were enrolled for the GPR course

and 13 for maritime studies. � The division achieved a Level 3 B-BBEE score. � Two port festivals were successfully completed during

the year.

Table 3: National Ports Authority’s top five risks and key mitigating activities

Key risks Mitigation activities

Execution and delivery of the accelerated capital investment programme

� Capacitate infrastructure and procurement departments: including capacity for dealing with tenders and contracts, claims handling, procurement management, project programme office and document control.

� Ensure that new infrastructure is planned and designed to cater for new-generation vessels and oil rigs.

� Improve tracking and monitoring of projects through improved governance (extending to the enterprise project management office, gate reviews, capex management and investment forums).

� Improve project risk management. � Accelerate environmental impact assessment approvals. � Streamline finance and funding processes. � On boarding of specialists – such as project finance, transaction advisors and legal

advisors – from inception of the project. � Monitor and improve procurement cycle times and enhance adherence to the

Procurement Procedure Manual. � Incorporate scope change management and earned value management in PPRs for

the next financial year.

Key risks Mitigation activities

Uncertain global and domestic economic recovery

� Constant monitoring of the economic climate to inform the planning process, identify both domestic and external risks and develop appropriate mitigations and interventions.

� Management of volume and revenue targets. � Promote and market South Africa’s ports system locally and globally to attract

more business and investment. � Implement the pricing methodology and phased roll out of BPP. � Diagnose lost business opportunities and quantify the impact on the South African

economy. In addition, define customer relationship management role to enhance customer centricity.

� Identify and develop new business cases for value added logistics opportunities in the developed and developing sectors.

� Leverage on the regional and continental trade agreements for mutual economic benefit.

Challenges experienced in introducing new entrants and industries into the port system

� Finalise the Concession Procedure Manual, and roll it out to the business. � Train and develop all cross-functional teams to handle concessions. � Enhance sector-specific knowledge in the Liquid bulk, Oil and Gas sectors as well

as the regulatory environment affecting these sectors. � Dedicate capable resources to strategic projects that have been prioritised; and

manage cross functionality. Appoint transaction advisors and specialists for major projects as required by the PFMA, and strengthen and improve governance and oversight structures.

� Improve tracking and monitoring of projects through improved governance (EPMO, gate reviews, capex, investment forums).

� Enforce minimum requirements of B-BBEE as per the port regulations.

Adequate infrastructure Maintenance

� Ensure the necessary resources to effectively execute the infrastructure maintenance plan.

� Inform operations with a balance between commercial imperatives, maintenance and the protection of current assets, especially in the container sector.

Enhancing the skillset to meet the demands of a changing port environment

� Review the organisational structure and align to the execution of the strategy. � Re-train and up-skill existing staff to meet changing business needs, and review

existing job descriptions. � Refine the recruitment and retention plan to accommodate new business

requirements. � Continue to implement the talent management programme. � Review and enhance succession pipelines.

OPPORTUNITIES � Promote the Port of Ngqura as a regional transhipment

hub in sub-Saharan Africa. � Increase revenue and employment through Operation

Phakisa projects. � Promote regional port development through

cooperation on various fronts, such as human resource development, port planning and engineering, technology, maintenance and capital dredging.

� Expand the South African port system (e.g. Durban Dig-out Port).

� Promote the South African port system globally to attract investments and optimise industrial development zones.

� Improve efficiencies and customer services through integrated technology and improved market collaboration.

� Improve supply chain efficiencies through effective joint operational centres.

� Develop a maritime centre of excellence.