Doing Business Conference July 2014

Content

• Macro perspective of Mozambique

• The Port of Maputo – Geographical Advantage

• Port Concession Information•

• Historical Information

• Strategy & Future Growth

• The Roadmap to deliver the Strategy & Port Master Plan

CRUDE OIL RAW MATERIALS CEREALS, FRUITS, FOOD PRODUCTS

From a macro perspective, the port of Maputo is at the Centre of the Global Logistic Chain

Ports in Mozambique

• The Port of Maputo is situated in the southern region of the country

• The Port is the biggest and busiest Port in Mozambique

• The Geographical location of the port makes it an attractive alternative option for export business from South African companies

SADC Transport Corridors

Maputo serves a regional hinterland of

other African countries

Geographical advantage

MaputoRichards

Bay Durban

Comparative road distances

Johannesburg (SA) 555 640 780

Witbank (SA) 395 622 533

Nelspruit (SA) 180 689 585

Comparative rail distances

Witbank (SA) 437 819 627

Polokwane (SA) 550 935 802

Gweru (Zim) 967 1764 1684

Bulawayo (Zim) 1083 1880 1800

Matsapa (Swa) 228 544 371

• Closest Port to Gauteng industrial hub, as well as

Limpopo & Mpumalanga mining regions

• Excellent connectivity to Zimbabwe & Zambia

• New customs tariff regime reduces cost of transit

export from neighbouring countries

• Good efficiency improvements relative to SA ports

Zimbabwe

South Africa

Swaziland

Mozambique

Rail Corridors

Hinterland Countries

About MPDC

Concession Information

• MPDC has the concession rights to operate the Port of Maputo and the approved concession period ends in 2033 with an option to extend for a further 10 years

• The total concession area is 140.6 ha with an additional 5 500 ha being available for expansion

• An approved Port Master Plan is in place to ensures that growth initiatives are implemented in a planned and structured manner

• A Rail Master Plan is currently being developed to enable the growth initiatives contained in the Port Master Plan

Shareholding Information

Our shareholding structure

since 2007

1992 Destabilization ends

1998 Commencement of negotiation for Port Management Concession

2003 MPDC formed(Mersey Docks, Skanska, Liscont)

2006 Grindrod buys 12.5% share

2007 Portus Indico was acquired by Grindrod and DP World

2010 Concession term extended from 2018 to 2033

MOZAMBIQUE GESTORES

Portos e Caminhos de Ferro de MoçambiqueMozambique Ports and Railways

PORTUSINDICO

Volumes

14.7

5

1012

1517

19

0

2

4

6

8

10

12

14

16

18

20

1971 2003 2010 2011 2012 2013 2014

Carg

o in m

illio

n o

f to

ns

Years

2003-2013 344% Growth

+12% *

* CAG – Compounded Average Growth

Historical Investment

• At the beggining of the concession period, MPDC

forecasted an investment of US$ 56m.

• After 10 years (2012), a total of US$ 400m were

invested in the port.

• The current Port Master Plan includes additional

investment plans of US$ 2.0 billion by MPDC

and its sub-concessionnaires (until 2033).

132 130

49

Infrastructure Equipment Port Authority

Investment from 2003 – 2012 (US$ Millions)

Strategy as per Port Master Plan

Total Volume to be handled in the Port of Maputo by 2020=

40 million tons

MatolaMaputo

Current Capacity:12 million tonsFuture Capacity:20 million tons

Maputo Main Port

Current Capacity:6 Million TonsFuture Capacity:20 Million Tons

Matola Coal Terminal

Maputo Port

TCM

Future

Development

Future

Development

Jurisdiction area earmarked for future development

Total concession area = 140.6 ha• Main port – 118.6 ha• Matola – 22.0 ha

Total jurisdiction area = 5 594 ha

The roadmap to deliver the strategy

CURRENT CAPACITY18 MILLION TONS

IMMEDIATE SHORT-TERM

2012-2013 2014-2015 2016-2020

OUR JOURNEY.....

2012Historic Record –15.1 million tons

2020Future target –40 million tons

MEDIUM-TERM

Future Volume Growth

15.2 17.320.5

23.527.1

31.333.6

37.440

0

5

10

15

20

25

30

35

40

2012 2013 2014 2015 2016 2017 2018 2019 2020

CA

RG

O T

ON

NA

GE

S

YEARS

Growth of total Port – inclusive of all Terminal Operators

Derailment Impact –

2 mil tons

Future Investment

Main investments (US$):

• Coal terminal – 834mil

• Container term – 300mil

• Bulk terminal – 104mil

• Dredging to 14m – 47mil

• Road/Rail/Berth – 246mil

Growth is dependant on the succesful implementation of a

rail logistics solution

Initiatives implemented in 2012/2013

CURRENT CAPACITY18 MILLION TONS

IMMEDIATE TERM CAPACITY

20 MILLION TONS

SHORT-TERM MEDIUM-TERM

2013-2014 2014/2015 2016-2020

• INFRASTRUCTURE: New Slab at the Bulk terminal Additional Bulk Shed for Rock

Phosphate New internal rail-lines Matola Coal Terminal Expansion

Phase 3.2 Car Terminal Expansion Phase 2 Berths 1 to 4 rehabilitated (for car

carriers) Gate 1 Expansion and road

rehabilitation New MICD Facility

+ EFFICIENCY INITIATIVES

• EQUIPMENT: 12 x new payloaders 1 x Ram-revolver 14 x skeletal trailers New fenders for all berths Additional tug boat with

65.000 tons bollard pull Pilot Boat replacement

INVESTMENT = US$ 155 MILLION

Car Terminal

• Current capacity: 121.000 units

• Future capacity: 202.000 units .

• Total Area: 48,143m2 ……………

Chrome Terminals

Ferro Chrome & Chrome Ore• Current capacity: 1,1 m/tons• Future capacity: 2.3 m/tons

Chrome Concentrate Terminals

Chrome Concentrate• Current capacity: 1,4 m/tons• Future capacity: 1.8 m/tons

General Cargo Terminal

Bagged Cargo

Project Cargo Fruit

Steel

Magnetite Terminal

• Current capacity: 2.8 million tons

• Future capacity: 4 million tons

Sized Coal Terminal

• Current capacity: 1.7 million tons

• Future capacity: 3 million tons

Coal Terminal

• Current capacity: 6 million tons

• Phase 3.2 capacity: 11 million tons

Container Depot (MICD)

26

MAIN YARD

MICD site location

MT storage area• Warehouse 8 000 m²• Empty container stack area:

2 000 TEU's• Full containers stack area:

300 TEU's• Bulk stack area : 9 000m²

Service Improvement Initiative

The new Ram Revolver operational system that will deliver a loading rate of 700 tons per hour

Port Road Infrasructure Improvements

• Length: 2,1km• Investment: US $ 2,4 million• Conclusion: 15 November 2013

• INFRASTRUCTURE: Definitive bulk terminal Upgrade of berths 6 to 8 Channel Dredging -14m Container terminal expansion

Additional yard New Rail terminal

Car Terminal Phase 3 New Nothern Boundary Road New Wind & Dust barriers Sugar Terminal Expansion

CURRENT CAPACITY18 MILLION TONS

IMEDIATE20 MILLION TONS

SHORT-TERMCAPACITY

30 MILLION TONS

MEDIUM-TERM

2012-2013 2014-2015 2016-2020

+ EFFICIENCY INITIATIVES

• EQUIPMENT: 2 x mobile ship-loaders Link belts for stockpile area 2 x back-actors 2 x Excavators Tug boat replacement Forklift replacement Automated cargo systems

INVESTMENT = US$ 355 MILLION

Initiatives planned for 2014/2015

Container Terminal

• Current capacity: 150 000Teu’s

• Future capacity: 400 000Teu’s

Sugar Terminal

• Current capacity: 1.2 m/tons

• Future capacity: 1,7 m/tons

Service Improvement Initiative

The Mobile Ship loader that will deliver a loading rate of 1 500 tons per hour

Impact - Capacity in Main Port increases

Berth rehabilitation

• Berths 6, 7 & 8 rehabilitation to deliver 2 deep water berths (draft = 14m & LOA = 250m)

• Start date January 2014

• Berths fully operational in two phases• Berth 6 – January 2015• Berth 7 – January 2016

• Total Investment: US $102 million

Improved Traffic Flow

Northern boundary road

• Port traffic management

• Length: 3Km

• Investment: US $ 12 million

• INFRASTRUCTURE: Matola Coal Terminal Expansion - Phase 4 Bulk terminal Phase 2 (Loading equipment) Rehabilitation of arrival/departure rail yard Internal rail shunting model

CURRENT CAPACITY18 MILLION TONS

IMEDIATE20 MILLION TONS

SHORT-TERM30 MILLION TONS

MEDIUM-TERM40 MILLION TONS

2012-2013 2014-2015 2016-2020

+ EFFICIENCY INITIATIVES

• EQUIPMENT: Ship loaders for Bulk

terminal 2 x Back-actors 12 x tractor trailers 24 x skips

INVESTMENT = US$ 328 MILLION

Initiatives planned for 2016 to 2020

Coal Terminal

• Current capacity: 6 million tons

• Final Future capacity: 20 million tons

Other initiatives taking place

• Solution to address congestion and improve port traffic management

• Capacity: 500 Trucks

• Area: 90,000m2

• Investment: US$ 4,6 m

Truck staging area (Matola)

Enablers impacting on the success of the Port Master Plan

• Immediate Rail Investment (CFM/Transnet)

• 24h Operating Channel (INAHINA)

EXTERNAL ENABLERS

HUMAN CAPITAL INVESTMENT• Adequate manning for

cargo growth• Adress age and literacy

level of current staff

INTERNAL ENABLERS

+

Khanimambo!

Thank you!