Heading heading heading Date

Transnet Port Terminals hosts honourable Mayor Councillor

James Nxumalo7 October 2015

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Contents

Transnet Port Terminals

• Overview of TPT

Market Demand Strategy

• Equipment

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• Transnet Port Terminals provides cargo handling services at 16 terminal facilities in seven ports to a wide range of customers including shipping lines, freight forwarders and cargo owners.

• Operations are in containers, bulk, break-bulk and automotives.

• We invest in state-of-the-art cargo handling equipment (ship-to-shore cranes, straddle carriers, rubber-tyre gantries, tipplers, conveyors) and manage the logistics interface with inbound and outbound rail and trucking carriers.

• We are proud of the implementation of the NAVIS-terminal operating system and the certification of all our terminals to ISO standards.

• Transnet Port Terminals is Africa’s biggest container terminal operator in terms of volumes handled.

• TPT Video

In line with Transnet’s new market demand strategy (MDS) and related investments, Transnet’s Port Terminals are currently expanding in response to growing business in the country.

Expansion includes creating storage capacity, the replacement of old equipment and upgrading of software.

TRANSNET PORT TERMINALS

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TPT EXCO

Mr Karl SocikwaCE Transnet Port Terminals

Mr Pru ArcharyChief Financial Officer

Dr Deirdre AckermannChief Information Officer

Ms Michelle PhillipsGM Commercial & Planning

Mr Dumisani KhuzwayoGM Human Resources

Ms Ntombeziningi SheziGM Procurement

Mr Zeph NdlovuGM Risk & Corporate Affairs

Ms Nombuso AfolayanGM Ops: KZN BBC

Ms Brenda MagqwakaGM Ops: KZN Containers

Mr Siyabulelwa MhlalukaGM Ops: Eastern Cape

Mr Velile DubeGM Ops: Western Cape

TPT’s Vision

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OUR TERMINALS

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THE TEAMTRANSNET PORT TERMINALS

16 Port Terminals across South Africa:- 4 Container Terminals with a total of 8m TEU capacity

(96% market share)- 3 Bulk Terminals with 89m Tonnes combined capacity

(52% market share in dry bulk – 0% liquid bulk)- 3 Automotive Terminals (100% market share of newly build)- 6 Break-Bulk Terminals with 19m Tonnes capacity

(69% market share)

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Transnet & TPT Values

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A Safety MindsetGood

Communication

Dignity & Respect

Empowered to PerformBusiness

FocusRecognition & Reward

Deliver on our Promises

Transnet’s Culture Charter Values

TPT

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SALDANHA BAY

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OUR TERMINALSTHE TEAMSALDANHA BAY

PORT OF CAPE TOWNOUR TERMINALSTHE TEAMPORT OF CAPE TOWN

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PORT OF CAPE TOWNOUR TERMINALSTHE TEAM

PORT ELIZABETH - Containers, Bulk, Break-Bulk & Automotive Terminals

PORT OF NGQURAPORT OF CAPE TOWNOUR TERMINALSTHE TEAM

PORT OF NGQURA- Containers, Bulk

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PORT OF EAST LONDON

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PORT OF NGQURAPORT OF CAPE TOWNOUR TERMINALSTHE TEAM

PORT OF EAST LONDON- Agricultural Bulk, Automotives, Containers, Break-Bulk

DURBAN

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PORT OF NGQURAPORT OF CAPE TOWNOUR TERMINALSTHE TEAM

PORT OF DURBAN- Containers, Automotives, Bulk & Break Bulk

DURBAN CONTAINER TERMINALS

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PORT OF NGQURAPORT OF CAPE TOWNOUR TERMINALSTHE TEAM

PORT OF DURBAN- Container Terminals

DURBAN CONTAINER TERMINALS

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PORT OF NGQURAPORT OF CAPE TOWNOUR TERMINALSTHE TEAM

PORT OF DURBAN- Container Terminals

15 cranes deployed servicing 18 vessels pw 92 Straddles deployed per shift, 3 Rail CranesAve Call size = 2 000 TEU4 Big callers (300-350 m) with 4 500 – 6 500 TEU MSC, MAERSK, K-Line, PIL, Evergreen, COSCO, MOL150 Trucks p/h, 24 Hour operation. ~1 500 employees, 12 Waterside & 2 Landside Gangs

Third busiest container port in the Southern Hemisphere61% of all South Africa’s container imports and exports through the port of Durban

Volumes (TEU) 5 307 pd 37 153 pw 1.93m pa

TEU on Rail 743 pd 5 200 pw 270 400 pa

Truck Gate Moves 2 600 pd 18 200 pw 946 400 pa

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DCT Plan To Achieve 35 GCH By FY 2019/2020

DCT PIER 2- Container Terminals Truck Staging Area

DURBAN MULTI PURPOSE TERMINALS – MAYDON WHARF, AGRIPORT OF NGQURAPORT OF CAPE TOWN

OUR TERMINALSTHE TEAM

PORT OF DURBAN- Maydon Wharf

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DURBAN MULTI PURPOSE TERMINALS – MAYDON WHARF, AGRIPORT OF NGQURAPORT OF CAPE TOWN

OUR TERMINALSTHE TEAM

PORT OF DURBAN- Agri Terminals

Ro-Ro TerminalsDURBAN MULTI PURPOSE TERMINALS – POINT RORODURBAN MULTI PURPOSE TERMINALS – MAYDON WHARF, AGRIPORT OF NGQURAPORT OF CAPE TOWN

OUR TERMINALSTHE TEAM

PORT OF DURBAN- MPT Point, Ro-Ro Terminals

Ro-Ro TerminalsDURBAN MULTI PURPOSE TERMINALS – RORO

RICHARDS BAY- Bulk and Break-Bulk Terminals

RICHARDS BAYDURBAN MULTI PURPOSE TERMINALS – MAYDON WHARF, AGRIPORT OF NGQURAPORT OF CAPE TOWN

OUR TERMINALSTHE TEAM

PORT OF RICHARDS BAY- Bulk & Break-Bulk Terminals

AT TRANSNET PORT TERMINALS WE HAVE LONG BELIEVED THAT OUR STAFF ARE OUR GREATEST ASSEST

RICHARDS BAYDURBAN MULTI PURPOSE TERMINALS – MAYDON WHARF, AGRIPORT OF NGQURAPORT OF CAPE TOWN

OUR TERMINALSTHE TEAMTransnet Port Terminals

OUR ACHIEVEMENTS

• The fastest growing container terminal in the world – Ngqura Container Terminal (NCT); Drewry Maritime Research. During 2012, NCT’s volumes more than doubled, peaking at 129% year-on-year.

• Winner of the Safety Award at the 2013 Transport Africa Awards. TPT was also shortlisted for the Best African Port Operator Award as well as the Transport Green Award.

• NOSCAR grading for Port Elizabeth and East London car terminals – 2012 NOSA audits. The NOSCAR is the highest safety accolade in the industry.

• Most moves per hour, highest in Africa (January to March 2013) – Port Elizabeth Container Terminal. Ranking done by Maersk, the world’s largest ocean carrier and container shipping container company. Durban Container Terminal was ranked fifth in the same study.

• Service Excellence PMR Africa Awards 2012 – Durban, Richards Bay, Ngqura and Cape Town. In 2013, Durban and Ngqura scooped the Service Excellence awards.

• Best performing container terminal in Africa – Durban Container Terminal; Container Management Top 120 World Container Terminals Survey 2013. Cape Town Container Terminal was also listed for the first time in 2013.

• Best Success in Africa Award for TPT from CNBC Africa.• World class rail dual cycle operation on Navis pioneered by Durban Container Terminal: Pier 2 in

March 2013.• TPT dominates Transet Internal Audit (TIA) Integrated Governance Awards.

- Best compliance internal control environment- Leader in fraud risk management environment- Most improved internal control environment

• Level three B-BBEE status for TPT attained in 2014.

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TRANSNET’s MARKET DEMAND STRATEGY

43Source: TPT Growth Strategy, Market Demand Strategy.

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TNPA INFRASTRUCTURE INVESTMENT

44Source: TPT Growth Strategy, Market Demand Strategy.

Saldanha (9%) R6.3bn

Cape Town (5%)R 3.2bn

Richards Bay (24%)R 16.8bn

Durban (45%)R 30.3bn

SLDR 7.1bn(15%)

Ngqura (4%)R 3.0bn

PE (2%)R 1.4bn

Manganese (11%)R7.9bn

ELR 38m

TPT 10-year Capital Investment Plan: - R69 billion

5,190

2021/22

4,990

2024/25

69,227

Total2023/24

7,557

2022/23

12,741

2020/21

10,020

2019/20

6,581

2018/19

6,7299,505

2016/17

4,294

2015/16

1,620

ReplacementR 24.4bn

35%

ExpansionR44.6bn

65%

2017/18

ExpansionR 22.2bn

62%

ReplacementR 13.6bn38%

Containers: R 35.8bn (52%)

ExpansionR 22bn

72%

ReplacementR 8.5bn

28%

Bulk: R 30.5bn (44%)

Investment per Sector (Expansion vs Replacement)

Break-Bulk: R 2.5bn (3%) Automotive: R 360m (1%)

ReplacementR 2.4bn

96%

ExpansionR 332m

92%

ExpansionR 95m

4%

ReplacementR 28m

8%

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DCT Berth Deepening & Lengthening

Business needIn order to address the safety of the existing quay walls; to restore the terminal capacity of 2.9m TEU pa and for the Port of Durban to handle larger vessels of 9200 TEU capacity, the current berths on the north quay need to be deepened and lengthened.

Scope• Deepen Berths 203 to 205 from -12,8m CD to -16,5m CD • Lengthen the berths from 914m to 1,200m to accommodate three 9200 TEU or 12000 TEU vessels with a

draft of -14,5m CD, (3x vessels with LOA of 350m) thereby restoring capacity to 2.9m TEU• The new quay wall shall accommodate 80 ton tandem-lift STS cranes with a rail gauge of 30,480m• Dredging for the container berths and channel to -16,5m chart datum. • Construction of new caisson quay wall 50m seawards of existing quay wall

Operating Divisions & Funding

Dependencies• 2 Environmental appeals received. TNPA expected to respond by May 2015• Approval of FEL-4 funding

Progress to date:• Engineering design– 95% complete. • EIA appeal process underway

Look ahead• Complete FEL-3 by Sept-15• FEL-4 funding approval by Transnet Board in November-15• FEL-4 funding approval by DPE in February -16

Key milestones:• Start construction at berth 205 in 2017• 18 months occupation per berth• FEL - 4 completion :August 2021

Planned investment

O.D. FEL-3 FEL-4 Total

TNPA R128m R6,000m R6,078m

TPT Nil but project will impact on terminal operations & capacity

TFR Nil

CAPIC Approval R128m -

Project Sponsor Richard Valihu

Project Director David McGillewe

TPT Owner Brenda Magqwaka

Terminal Rep Shane Narainsamy

TPT PM Previn Govender

TPT Obligations Provide and approve terminal requirementsProvide interface bet project & operationsEnsure compliance to end user needsMonitor progress

Steerco Still to be setup

TNPA Planned investment

588548359

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18/1915/16 16/17 17/18 20/21

2,252

19/20

2,252

Phasing Start Complete

Phase 1 – Berth 205 January 2017 October 2018

Phase 2 – Berth 204 November2018

April 2020

Phase 3 – berth 203 April 2020 August 2021

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DCT - North Quay Upgrade : Superstructure and PavingBusiness needWith the new lengthened North Quay, DCT will required additional cranes and straddle carriers to restore terminal capacity to 2.9m TEU. The North Quay occupations for deepening also provides an opportunity to rehabilitate the “end-of-life” safety critical stack paving.

Scope• Replacement of 2x STS cranes to accommodate 30.480m gauge• Acquisition of additional 3x STS Cranes for longer quay• Acquisition of additional stacking equipment• Replacement of the concrete stack paving

Operating Divisions & Funding

Dependencies• Deepening & lengthening of North Quay by TNPA• Approval of FEL-3 & FEL-4 funding

Progress to date:• Option analysis indicates conversion of landside to RMG’s not viable and DCT P2 should remain as a

straddle carrier operations.

Look ahead• EXCO resolution to remain with straddle carriers in Mar-15.• Funding approval for FEL-3 study in 2015

Key milestones:• EXCO approval to remain with straddle carriers• Start of FEL-3 study in 2015

Planned investment

O.D. FEL-3 FEL-4 Total

TNPA Nil

TPT R25m R5,609m R5,634m

TFR Nil

CAPIC Approval -

Project Sponsor Karl Socikwa

Project Director TBA

TPT Owner Brenda Magqwaka

Terminal Rep Shane Narainsamy

TPT PM Ebrahim Ali (Acting)

TPT Obligations Provide and approve terminal requirementsProvide interface bet project & operationsEnsure compliance to end user needsMonitor progress Ensure alignment with the TNPA Berth Deepening and Lengthening project

Steerco Still to be setup

TPT Planned investment

266250624

314250

21/22 beyond20/2118/1916/17

1,758

17/18 19/2015/16

2,397

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Pier 1 Phase 2 InfillBusiness needIncrease container handling capacity in the Port of Durban and provide additional deep water berths for larger vessels. Pier 1 capacity is envisaged to increase from 0.7m TEU to 2.5m TEU pa

Scope• Construction of new quay walls to provide additional deep water berths (-16.5m CD)• Provision of associated container stacking area• Acquisition of container handling equipment• Construction of container stack paving• New entrance and staff facilities

Operating Divisions & Funding

Dependencies• Lease of land by TNPA from DPW (TNPA CE meeting with Sec of Defense in Feb)• TNPA Terminal Operator License approval• Environmental Authorization for infill• Approval of FEL-4 funding

Progress to date:• FEL-3 study in progress

Look ahead• Approval of Terminal Operator Licence• Completion of FEL-3 by May 2017• Environmental application• Request for FEL-4 funding

Key milestones:• FEL - 3 completion : May 2017• Lodging of Environmental application in November 2015• Environmental Authorization in May 2017• Request for FEL-4 funding to start @ OD CAPIC’s in 2017

Planned investment

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O.D. FEL-3 FEL-4 Total

TNPA R47m R6,000m R6,047m

TPT R15m (pending TNPA licence approval)

R14,000m R14,015m

TFR Nil

CAPIC Approval R47m -

Project Sponsor Richard Valihu

Project Director David McGillewe

TPT Owner Brenda Magqwaka

Terminal Rep Shane Narainsamy

TPT PM Previn Govender

TPT Obligations Provide and approve terminal requirementsProvide interface bet project & operationsEnsure compliance to end user needsMonitor progress

Steerco Still to be setup

TPT Planned investment

Pier 1 expansion with new Salisbury Island infill and

deepwater berths

113351500

16/1715/16 19/20

4,879

21/2218/1917/18 beyond

7,329

20/21

1,922

DCT Stack Rehabilitation

Background

The paving in certain of DCT P2’s stack area had cracked and failed. The ensuing settlement resulted in unsafe operations and damage to

equipment. The replacement if the scour protection at DCT South Quay by the TNPA provided an opportunity for DCT to capitalize on the

outage to replace all the failed paving. Phase 1 of the works was completed ahead of schedule and Berth 108/9 was handed over on 14-Jul-

14. The remaining 3 phases have also been completed with Phase 4 handed over in June 2015. The project is now complete.

Planned Actual

Cost R 140m R 120m

Completion Mar-15 Jun-15

Benefits

1. Restore DCT’s capacity to 2.5m TEU pa.

2. Improve safety and reduce damage to straddle carriers & injury to personnel.

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Sustaining of

capacity

STS Crane for DCT East Quay

Background

DCT’s East Quay is currently equipped with old ship to shore cranes which are unreliable. The acquisition of new cranes with the latest

technology will assist in improving productivity. The order for these cranes was placed with Liehberr Container Cranes. The cranes arrived in

component form on 6 July 2015 and is currently being off loaded for erection.

Planned Forecast

Cost R 340m R 340m

Completion June-2015 Sept-15

Benefits

The East Quay at DCT will have the ability to handle bigger ships given the higher and longer reach of the new twin lift cranes.

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Sustaining

of capacity

Construction of Central Staff Facility at Pier 1

Background

The Pier 1 container terminal consists of many temporary facilities for staff accommodation which are inadequate. This has led to low staff

moral and unhappiness. TPT recognized that the current facilities are not conducive for the operational environment and approved capital

funds to construct a central mess and ablution facility to accommodate the operational staff.

Planned Forecast

Cost R 86 m R 84 m

Completion Apr-15 Jul-15

Benefits

1. Optimize human resources through a modern staff facility at Pier 1.

2. The successful completion of this project will contribute towards employee care and improved morale.

3. Reduce employee fatigue. 29

Staff

Facilities