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Heading heading heading Date

TRANSNET PORT TERMINALS GEARED FOR BUSINESS

GROWTH

5 - 6 JULY 2016

KARL SOCIKWA

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QUESTIONS AND ANSWERS

2

TPT STRATEGY

TRANSNET ROLE IN ECONOMY

EC TERMINAL CONTRIBUTION TO THE ECONOMY

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TRANSNET PROFILE

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TRANSNET’S ROLE IN THE ECONOMY

• Transnet plays a strategic role in the South African Economy

• Transnet Remains committed to creating capacity ahead of demand

that will enable unstrained growth

• Transnet is driving an extensive capital investment plan known as the

Market demand strategy since 2012

• Transnet pursues competitive pricing to promote volume growth in all

four sectors to ensure the optimum utilization of assets to deliver the

targeted return on investment

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Transnet State Owned Company Ltd- NEW STRUCTURE

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Integration into the Supply Chain

GlobalOperations

TPT NEW STRATEGIC DIRECTION

Local

Operations

Defending and

growing the

Home Turf

Innovative

Value Adding

Services

Expanding the

Horizon

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TO GROW AND DEFEND OUR LOCAL MARKETS WILL REQUIRE STRATEGIC INITIATIVES IN FIVE AREAS

Operational Excellence (Efficiency, Safety) & Customer

Service

B

Develop and grow a highly effective

workforce

D

Innovation

E

7

Grow and

defend local turf

Ex

pa

nd

in

to

Co

al

ha

nd

lin

g

for

em

erg

ing

m

ine

rs

F

En

ter fu

el

ha

nd

ling

G

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Railway , Ports & Terminal Infrastructure require deliberate intervention

Political Stability and

Will

Skills DevelopmentSustainable Economic

Growth

Infrastructure

Development

Fundnnning Framework

(Local and international

ventures)

Southern African

countries working

together for regional

growth and

development

Policy & Legislation

ENABLING ENVIRONMENT REGIONAL INTEGRATION

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EASTERN CAPE TERMINALS GEOGRAPHICALLY

7. SaldanhaBulk (Export iron ore),

Breakbulk

6. Cape TownContainers,

Breakbulk

4. NgquraContainers , Breakbulk ( project cargo)

3. East LondonContainers, Breakbulk, Agri-Bulk, Automotives

1. Richards BayBulk (Export coal, magnetite, Chrome), Breakbulk

2. DurbanContainers, Breakbulk, Agri-Bulk, Automotives

5. Port ElizabethContainers, Breakbulk, Bulk, AutomotivesWESTERN CAPE PORTS

EASTERN CAPE PORTS

KZN PORTS

• 2 x Ports in the Nelson Mandela Bay• Railway lines connecting to KZN, FS, NC & WC • R1.5bn Turnover R3.5bn Asset Value• >1,467 employees

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PORT ELIZABETH TERMINALS

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• Complimentary Port system model with Port of Ngqura

• Skiptainer one of the ground breaking innovation initiative to sustain the terminals

• Dredging of the Container Terminal in future in the Port Master Plans – once 60% of NCT Capacity is utilized

• Relocation of Manganese is review but all plans 2019/20 are persued

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PORT OF NGQURA

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DURBAN MPT TERMINALS – POINT ROROPORT OF NGQURA : CONTAINER TERMINAL EXPANSION

• Voted the fastest growing terminal in Africa

• Although the container market has shown decline, steady growth has been experienced

• R1,1 capital investment a mark of confidence in the economy of the Region

• State of the art equipment and People

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PORT OF EAST LONDON : AUTOMOTIVE BACKBONE

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• Collaboration & integration of Transnetdivisions

• Efficiencies and cost effectives underpinsthe economic growth of the region

• Widening of the entrance channel will be based on market demand

• Constantly attracting more volumes

• Grain Elevator remains a strategic asset - PSP

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NGQURA CONTAINER TERMINAL EXPANDED

- R1bn in equipment, civil infrastructure and buildings

- 110 x additional permanent jobs were created (total 650 jobs)

PORT ELIZABETH MANGANESE PROJECT

- Investment of R27.7bn for Ngqura Manganese Export Terminal

- Support emerging miners & support excess market demand

- Investment of R428M for PE Plant refurbishment

EL PSP GRAIN ELEVATOR PROJECT

- RFI came back positive re PSP process

- Both Downscaling & PSP are in procurement process

CAPITAL INVESTMENT PROJECTS

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EC RESPONDING TO ECONOMIC CLIMATE

• Volume Growth- Robust Sales & Marketing (Expanded Product Catalogue)- Introducing new commodities at our Terminals (Combi Terminals Concept) - Injection of state of the art equipment and next generation IT systems at NCT - Diversification of Products & Service offerings (Introducing new value add services)

• Leverage on the positioning and connectivity

- EL : Automotive & Agricultural sector - NCT : Containers Transshipment hub- PET : Automotive & Bulk

• Embed a Continuous improvement culture in all processes & services

- Implemented a training and accreditation programme for leadership

• Innovative capacity creation solutions

- Skiptainer operations in Port Elizabeth

• Enhance division integration & connectivity – East London rail connectivity to

Zimbabwe

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EC RESPONDING TO ECONOMIC CLIMATE

• Socio Economic Contribution - R1m Injected to supplier development equipping suppliers with business skills

- Corporate Social Investment Programmes : Shoe on Feet, Take a girl child, technogirlMan in the Making

• Sustainability : East London water harvest success

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THANK YOU