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Operation Phakisa Presentation

Invest in South Africa Oceans Economy Seminar

6-7 July, South Africa House, London, United Kingdom

The South African Ports System

Operation Phakisa Initiatives : Marine Transport and Manufacturing

Improving Existing Facilities

Private Sector Investment Opportunities and Timelines

Port of Richards Bay, East London and Saldanha Bay

Contents

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Owns & Operates

20,500 km track,

including 1,500 km dedicated heavy haul

Supports TFR with rolling

stock maintenace

Landlord to 8 commercial

Ports around the South

African coastline

16 cargo terminal

operations across South African Ports

3 800 km of pipeline

capacity for petroleum and gas products

Rail Supporting Pipelines Ports

TNPA as an integral Operating Division of Transnet Group

Richards Bay

Durban

East London

Cape Town Mossel Bay

Port Elizabeth Ngqura (Coega)

Saldanha

Port Nolloth

Gauteng

2,798 km of

Coastline

South African Ports

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The South African Ports System

Operation Phakisa Initiatives : Marine Transport and Manufacturing

Improving Existing Facilities

Private Sector Investment Opportunities and Timelines

Port of Richards Bay, East London and Saldanha Bay

Contents

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The Lab recommended the following initiatives for Marine Transport and Manufacturing

Infrastructure and operations Skills and capacity building Market growth

Create supportive funding and revenue model

Establish purpose-built oil and gas port infrastructure by appointing Facility Operators Saldanha Bay

Align on Implementation of government policy

Prioritise Transnet and TNPA funding allocation towards marine manufacturing

Maintain and refurbish existing facilities

Unlock investment in new and existing port facilities

Implement Strategic Prioritised Project Richards Bay

Implement Strategic Prioritised Projects East London

Train 2,550 TVET College graduates on an 18-month Workplace-based Experiential Learner Programme in scarce and critical trades over the 5 year period

Create dedicated Occupational Teams for MTM Sector (professional, trades, operators and seafarers)

Establish trade RPL, CBMT or Centres of Specialisation in Saldanha Bay and Richards Bay

Train 18,172 learners as artisans, semi-skilled workers and professionals over the next 5 years

Increase usage of ESSA system and targeted career awareness services as a high value recruitment tool for MTM

Increase capacity to develop skills for ~1,200 ratings and ~720 officers per year

Create and implement a public procurement and localisation programme

Develop a strategic marketing campaign and value proposition for target markets

Propose inclusion of preferential procurement clause in the African Maritime Charter

Support local registry of vessels through incentives and legislation of using SA-flagged ships for cargo and coastal operations (based on United Nations Conference on Trade and Development and African Maritime Charter guidelines)

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A B C

i. TNPA Transnet National Ports Authority ii.ESSA Employment Services of South Africa iii.TVET Technical and Vocational Education and Training

iv. RPL Recognition of Prior Learning v. CBMT Competency-based Modular Training 6

TNPAs immediate focus is on addressing infrastructure constraints

These initiatives require capital investment over the next 5 years.

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Immediate Impact on TNPA Infrastructure and operations

Create supportive funding and revenue model

Establish purpose-built oil and gas port infrastructure by appointing Facility Operators Saldanha Bay

Align on Implementation of government policy

Prioritise Transnet and TNPA funding allocation towards marine manufacturing

Maintain and refurbish existing facilities

Unlock investment in new and existing port facilities

Implement Strategic Prioritised Project Richards Bay

Implement Strategic Prioritised Projects East London

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Initiative Details

Initiative 2 Acceleration of identified ship/rig Repair and Supply Bases investments

at the port of Saldanha

Initiative 5 Acceleration of the refurbishments of existing ship repair facilities

under the control of TNPA

Initiative 7Dredging at the port of Richards Bay to accommodate the introduction of

a floating dock

Initiative 8Refurbishment of the East London slip way to accommodate boat

building

The South African Ports System

Operation Phakisa Initiatives : Marine Transport and Manufacturing

Improving Existing Facilities

Private Sector Investment Opportunities and Timelines

Port of Richards Bay, East London and Saldanha Bay

Contents

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Overview of Operation Phakisa : Existing Ports

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Operation Phakisa Projects (Initiative 5)

Investment in existing Ship Repair Facilities 2015/16 Estimated Cost

Cape Town, Durban, East London, Port Elizabeth, Saldanha Bay R 320m

Total TNPA Budget for next 5 years R 2Bn

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The South African Ports System

Operation Phakisa Initiatives : Marine Transport and Manufacturing

Improving Existing Facilities

Private Sector Investment Opportunities and Timelines

Port of Richards Bay, East London and Saldanha Bay

Contents

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Operation Phakisa Projects (Initiatives 2,7,8)

Project Objective Estimated Co-funded

investment required

Estimated Jobs

created

Estimated GDP Contribution

Saldanha Bay Oil and gas repair and supply base facilities

Establishment of port facilities to service the Offshore Oil and gas

industry within the Port of Saldanha

R13.2bn 15 000 18bn

Richards Bay Ship repair facilities

Development of a cost effective ship repair

facilities within the Port of Richards Bay

R900m TBC TBC

East London boat building facilities

Development of the required infrastructure to

be a catalyst for the establishment of boat

building in the Port of East London

R515m TBC TBC

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Project Advisor Project

Analysis Completed

Business Case Development and Approval

Procurement of Preferred

Bidder Completed

Financial close and

appointment of Bidder

Required Operational

Date

Saldanha Bay Oil and Gas repair and supply base facilities

Sept 2015 Sept 2015 Dec 2016 Sept 2017 2019

Richards Bay Ship repair facilities

Nov 2015 Nov 2015 June 2016 Sept 2016 2019

East London boat building facilities

Jan 2016 Jan 2016 Nov 2016 Jan 2017 2019

Operation Phakisa Projects (Initiatives 2,7,8)

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Stakeholder engagement

Engagements concluded Place Dates

Local stakeholder engagements have been concluded

Cape Town 3 June 2015

Planned Engagements Place Dates

International market players

London , China, Singapore, Korea, Netherlands, America

August 2015

Offshore Europe

Aberdeen 8 11 September 2015

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Envisaged Phasing and timelines for the initiatives

Start Finish FY 2014/15

Q4 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Procurement of Transaction

AdvisorsJan-15 May-15

Business Case Development and Approval Apr-15 Sep-15

Project Procurement

RFQ Sep-15 Feb-16

RFP Mar-16 Dec-16

Financial close and appointment of bidder Jan-17 Sep-17

Construction

Environmental Impact Assessment Sep-15 May-16

Construction Sep-17 Sep-19

Operation Sep-19

Business Case Development and Approval Sep-15 Nov-15

Project Procurement

RFQ Nov-15 Mar-16

RFP Apr-16 Jun-16

Financial close and appointment of bidder Jun-16 Sep-16

Construction

Environmental Impact Assessment Nov-15 Jul-16

Construction Nov-16 Jun-18

Operation Jul-18

Business Case Development and Approval Nov-15 Jan-16

Alignment of Business Case with Initiative 1

(DTI Incentive package)

Project Procurement

RFQ Jan-16 Jun-16

RFP Jul-16 Nov-16

Financial close and appointment of bidder Nov-16 Jan-17

Construction

Environmental Impact Assessment Jan-16 Sep-16

Construction Jan-17 Nov-18

Operation Nov-18

Intiative 2 - Saldanha Rig Repair

Intiative 7 - Richards Bay

Intiative 8 - East London

FY 2019/20FY 2015/16 FY 2016/17 FY 2017/18 FY 2018/19

Q1 Q4

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The South African Ports System

Operation Phakisa Initiatives : Marine Transport and Manufacturing

Improving Existing Facilities

Private Sector Investment Opportunities and Timelines

Port of Richards Bay, East London and Saldanha Bay

Contents

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Port of Richards Bay

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Richards Bay

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Richards Bay : Ship Repair (Artist Impression)

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Port of East London

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East London is the only river port in South Africa, situated on the Buffalo River;

It is well known for its world-class automotive terminal;

CARGO TYPE TERMINAL BERTHS USABLE BERTHS TERMINAL CAPACITY BERTH LENGTH BERTH DRAFT

Containers Quay 6 K, L 2 93 000 506m 10,7m

Cars West quay P, R 1 130 000 559m 9m

Dry bulk East London bulk S, T 1 4 000 000 388m 10,7m

Break bulk Quay 3 and 4 G, I 2 250 000 492m 11m

Liquid bulk Tanker berth TB 1 2 400 000 259m 10,7m

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Future expansion of the port is restricted by the narrow and shallow river basin.

The port has multi-purpose, liquid bulk and dry bulk terminals.

Automotive Terminal

Ship Repair Facility

Multi-Purpose Terminal

Dry Bulk

Liquid Bulk

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Key Deliverables Refurbishment of Graving Dock over next 3 years:

Refurbishment of dry-dock cranes; Replacement of crane rails; Refurbishment of dry-dock gate; Replacement of switchgear; Refurbishment of pumps;

Refurbishment of Slipway area

Shop 17 Area: 2 690m2

Sheet Pile Wharf Repair Quay

DRYDOCK SLIPWAY

Project In support of Blue Economy, NDP:

Industrialisation Job Creation Skills development

Create a new funding and revenue model, helping to reduce cost for infrastructure.

Refurbish and optimise operations of existing infrastructure.

Operator: Transnet National Ports Authority Repairers: (Private Repairers)

East London Shipyard; Mac Engineering; Land Marine Projects; Intsimbi Group; GL Enterprise Trust; Amnion Projects;

Dock Length: 200m, Max beam: 24.8m Equipment:

- 4 x Cranes (2 x 15 ton, 1 x 5 ton and 1 x 4 ton) Commissioned in 1947

Port of East London : Ship Repair Facilities

Port of Saldanha Bay

CARGO TYPE TERMINAL BERTHS USABLE BERTHS TERMINAL CAPACITY BERTH LENGTH BERTH DRAFT

Iron ore Iron ore 101, 102 2 60 000 000 1 260m 23m

Break bulk Multi-purpose 201, 202, 203, 204 4 5 800 000 874m 13m to 15m

Liquid bulk Liquid bulk 103 1 25 000 000 360m 23m

South Africas deepest port (draft 21.5m)

Iron ore export jetty provides berthing for large dry bulk and liquid bulk vessels.

Multi-purpose terminal and facilities;

The port has the potential for expansion to support adjacent industrial zone development.

Premier iron ore export port - in excess of 50mt per annum.

Iron Ore Stockpiles

Iron Ore & Liquid Bulk

Berths

Multi-Purpose Berths

Oil & Gas Fabrication

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Saldanha Future Expansion

Aerial picture of Port

Proposed Iron Ore

Berth

Proposed Mossgas Quay

Extension

Proposed Oil & Gas Repair Berth

General Maintenance Quay (OSB)

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Saldanha : Rig Repair Berth 205

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Saldanha : Rig Repair Berth 205 (Artist Impression)

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Saldanha : Oil and Gas Supply Base (Artist Impression)

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Saldanha : Mossgas Jetty

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Saldanha : Mossgas Jetty (Artist Impression)

Thank you