Mr Chris WellsActing Group Chief Executive07 October 2010

UPDATE ON PROGRESSNMPP INFRASTRUCTURE INVESTMENT

OBJECTIVE OF THE PRESENTATION

1

Progress in rolling out the project

To share challenges and impact on

timelines and projected future cost

INDEX

Transnet Strategy and Investment plans Mr. C Wells

Project Progress Mr. N Eve

Security of supply: Bridging Plan Mr. C Möller

Conclusion and Way forward Mr. C Wells

Objective of this session

As indicated in past, Transnet will update all roleplayers including the media when appropriate. Communication to the

stakeholders is being made on a regular basis (Transnet Board; DoE/DPE; Regulator/NERSA; Media)

TRANSNET’S STRATEGIC PRIORITIES

2

Increase productivity and efficiency

Volume growth

Create capacityFinancial sustainability

Improving customer services

Regulatory environment

SHEQ

Strategy enablers

Human resources

The NMPP is important and significant in Transnet’s capital investment programme

TRANSNET’S INFRASTRUCTURE INVESTMENT PROGRAMME

3

Total 5- year plan:R93.4bn

15.316.217.1

21.922.8

14/1513/1412/1311/1210/11

Transnet’s Capital Investment PlanFive Year

Plan(Rbn)

Rail 54.6

Ports 24.7

Pipeline & Other 14.1

Investment Plans are reviewed annually to ensure alignment with market conditions and operational

requirements and approved through governance structures

NMPP investment cost included in the approved 5-year plan

To enable and support economic growth, Transnet continues with its major capital investment programme

Transnet is committed to the roll-out of its capital investment plans

R b

illio

n

NMPP: MAJOR STRATEGIC PROJECT IN TRANSNET INVESTMENT PORTFOLIO

4

• The Department of Energy in 2006 required the size of the new pipeline to be increased to address projected potential security of fuel supply shortages in 2010/11.

• The Transnet Board in 2008 took the decision to proceed with the NMPP project despite certain unresolved risks to ensure that South Africa (specifically Gauteng) did not face fuel shortage.

NMPP Investment:

Strategic Intent

• To replace the existing 45-year old Durban-Johannesburg Pipeline (DJP - 12 inch) urgently as it

is running at full capacity and nearing the end of its design life

• To increase the capacity on this critical route (Durban-Gauteng) to meet projected demand (16

inch required) from a business case perspective

• Include additional capacity to ensure security of supply for the long term as required by the

Department of Energy (mainline increased from 16 inch to 24 inch)

Investment Overview

• 555km of 24 inch pipeline (mainline) and 160km of 16 inch pipelines

• NMPP, as both a Greenfields and Brownfields project, executed over long distances with difficult

terrain would have significant issues in respect of cost and time delivery

Rolling out with a sense of urgency

Strategic and important world-class asset for South Africa over the long term

NMPP INVESTMENT COST

5

Forecasted investment cost shared with stakeholders

March 2010 = R15.5bn (baseline)

Expert multi-disciplinary team currently finalising cost and commissioning dates given the now

generally advanced state of engineering and design

Updated costs and deliverable dates will be communicated in Nov/Dec 2010

This will be shared with all governance bodies and roleplayers

Increase of R1bn in the NMPP project cost impacts the fuel price by a relatively small amount

(estimated currently at less than 1 cent/litre)

The 5 year funding plan includes funding from:

• Transnet Domestic and International Bonds (DMTN/GMTN)

• Commercial paper

• Development Finance Institutions

• Export Credit Agencies

FUNDING PLANS

6

Funding requirements 2010/11 to 2014/15

Of R40bn

Funding Strategy

FundingInvestment

Transnet does not receive any subsidies or loans from the Government (Shareholder)

Transnet funds its capital investment programme from:

• Cash flows from operations (tariffs)

• Funds raised in the debt capital markets based on Transnet’s strong balance sheet and

credit rating

Fuel levy to Transnet for the next 3 years for funding of “Security of

Supply” portion of the NMPP project (24 inch mainline),

• Would have been received by way of tariffs in

subsequent years (now will be deducted from the asset base –

no double counting)

• As no returns are allowed by Regulator on Capital work

in progress

• Received first levy payment during September 2010

Transnet Pipelines:Security of

Supply

24”

16”

Increased investment risk to ensure appropriate return on investment

There remains significant economic regulatory risk as the determination of the required tariff by

NERSA is still an area of significant concern.

It is critical that tariffs granted give a fair return on invested capital.

However Transnet is committed to engaging constructively with NERSA and DOE to ensure that going forward the Regulatory process results in predictable and fair

tariffs (cash flow for Transnet)

UNCERTAINTY IN REGULATED TARIFFS

7

Although uncertainty in funding model and rate of return

Mr Neville Eve

07 October 2010

NMPP PROJECT PROGRESS

SCOPE OF THE NMPP

160km of new 16 inch Pipelines including

connection to 3 existing depots and

the Jameson Park pump station

2 New Terminals

a Greenfields site at Jameson Park and

a Brownfields site at Island View at the Port of Durban

555km of new 24 inch Pipelines

Several major and minor river crossings

Half of the line in mountainous terrain

Wetlands

Four Mainline Pump-stations in Phase 1, (Pump station 0 being at Terminal 1)

Pumping capacity to move product 1800 metres up the escarpment

Max pumping capacity after initial installation is ca. 1150m3/hr

9

INDIANOCEAN

LADYSMITH

BETHLEHEM

VOLKSRUST

NEWCASTLEKROONSTAD

KLERKSDORP

WITBANKKENDAL

WALTLOO

SECUNDA

STANDERTON

ALRODE

COALBROOKSASOLBURG

TARLTON

LESOTHO

NATAL

FREESTATE

GAUTENG

N

RUSTENBURG

NORTH - WESTMPUMALANGA

KWAZULU /

AIRPORT

VRYHEID

RICHARDS BAY

AFRICA

VAN REENEN

EMPANGENI

JAMESON

DURBAN

PARKCAPE TOWN

DURBAN

GAUTENG

SOUTH AFRICARICHARDS

BAYLESOTHO

SECUNDA

REFINED PRODUCTSCRUDE OILGASAVTURFUTURE NMPP PIPELINES

PPT-1741

PRETORIA WEST

PETROLEUM PIPELINE NETWORK AND THE ROUTE OF THE NMPP

NMPP TECHNOLOGY

11

NMPP STRATEGIC VALUE CHALLENGES

Safe, environmentally friendly and efficient system that will provide for security for supply for the long term.

Significantly reduce the current road haulage of fuel from Durban to Gauteng.

Enhance supply integrity (low dependence on oil company feeder line run down scheduling)

A new liquid fuel transportation system to support strong economic growth for South Africa.

Product demand driving a schedule prioritised project which commenced on a fast track basis.

Engineering keeping pace with the delivery of the project.

The management of a complex physical and multi stakeholder delivery environment.

Transnet has met and will continue to meet these challenges.12

Status of the Project13

MAIN LINE PROGRESS

Line Pipe Delivery Complete

Welded 491.7 km (98.4%)

Backfilled 364.1 km (76.8%)

Re-instated 250.7 km (52.9 %)

14

Main River crossings complete (49)

Major Wetland crossings complete (481) (95km)

First welding crew demobilized

Mainline sections on schedule

Hydro-testing began

Land Acquisitions complete (1148 properties)

All Environmental Approvals in place

MAIN LINE PROGRESS

15

DURBAN AREA PROGRESS

Durban area welded 71.1km (88.2%)

Durban area backfilled 35.8km (44.4%)

Durban are re-instated 11.5km (14.3 %)

16

Progress 32% (33%)

Eskom Power supply progressing

Earthworks and Civil works ahead of schedule

Management of Risks

Engineering & design

Fast track construction

Materials delivery

PUMP STATION PROGRESS

17

Progress 27% (33%)

Ahead of Schedule

Satisfactory Safety and Environmental performance

Tank foundations

Management of Risks

Engineering & design

Material delivery

Vendor data

INLAND TERMINAL (Terminal 2) PROGRESS

18

19Project Management

20

TRANSNET PROJECT LIFE-CYCLE PROCESS

NMPP Licence Conditions Schedule Requirements

NOTE:

The delay in the 24” Trunkline gives rise to the need for a Bridging Plan

Stakeholders were advised Jan – March 2010 of the delayed final completion date of Aug 2013. This remains the target completion date.

Transnet’s current revised forecast dates for each of these licence conditions are as follows:

NMPP CONSTRUCTION SCHEDULE AND LICENCE CONDITIONS

LICENCE CONDITION

ASSETS TO BE OPERATIONAL DATE IN LICENCE

CURRENT FORECAST

1.3 KENDAL TO WALTLOO LINE CONSTRUCTION COMPLETE 31 DEC 2009 31 DEC 2010

10.4 COMMENCE OPERATION OF 24” TRUNKLINE 31 MAR 2011 31 DEC 2011

1.2CONSTRUCTION OF ALL ASSETS COVERED BY THE LICENCE COMPLETE AND READY FOR OPERATION

20 DEC 2011 31 DEC 2013

21

DELAY IN CONSTRUCTION SCHEDULE

22

Abbreviated project life cycle process

Fast Track Engineering demand

Long lead procurement challenges

Contract strategy impact

Route and location option feasibility engineering

Physical environment

Adverse weather

Rock / Trenchless Crossings / HDD / Wetlands / Street Works / Security

Physical / logistical construction spread

Statutory approval process

Land acquisition

Underestimated wetland impact

Time related costs

Social interface challenges

PRIMARY SCHEDULE DELAY & COST DRIVERS

23

Proposed Island View Terminal Station FYNNLAND

Pipeline routes not shown

Existing Transnet pump station

DURBAN HARBOUR

DURBAN PORT & ISLAND VIEW PROPOSAL AS IN MARCH 2008

Natcos Tank

24

DELIVERY ACHIEVEMENTS

25

The Mainline and Facilities Project is progressing well

Majority of major contracts have been awarded

Pipeline is fully manufactured and on site

Commissioning of inland systems underway

All regulatory approvals have now been obtained

World class technologies employed

Communities have benefitted from construction of the main line

Transnet has been a responsible corporate citizen in the delivery of this project, incl

2100 local people recruited, trained and employed over 9 magisterial districts

190 home owners participated in the NMPP Mini Quest Houses accommodation project

Specialised skills training eg. 40 Welders (25 % women and 20 advanced qualification)

World class standards of physical environment protection and re-instatement

SECURITY OF SUPPLY - BRIDGING PLAN26

OVERVIEW OF TRANSNET PIPELINES (TPL)

27

Turnover of about R1,4 billion/annum.

560 Employees with Head Office in Durban.

We own, maintain and operate 3000 km of high pressure, underground steel pipes supplying energy (petroleum and gas) to the economic heartland of our country. At any moment the SA Oil Industry has 300 million liters of fuel in our system.

We transport energy in the form of a variety of petroleum products such as petrol, diesel, crude oil and jet fuel as well as Gas through our pipelines and our clients are the Oil Companies of South Africa (SAPIA-members).

Our pipelines are like arteries supplying energy to the eastern parts of our country and are key elements to ensure an appropriate supply of petroleum products to meet security of supply challenges.

Capacity constraints in our pipeline system could hamper economic growth in our country’s heartland. Present petroleum pipeline between Durban and Gauteng is operating at maximum capacity which is insufficient to meet demand.

Primary (“First Choice”) mode of transport of SA Oil Industry for Liquid Fuels being safe, bulk volume, low cost, reliable, environmentally friendly carrier.

Our tariffs are used as benchmarks for pricing with regard to the transport element of the controlled price of fuel in South Africa.

We are regulated by the National Energy Regulator of South Africa (NERSA) as far as both our petroleum as well as gas activities are concerned.

We presently hold the following licences (with conditions) from NERSA:• Operations of the total petroleum pipeline system.• Operations of the Gas pipeline (Lilly-line)• Operations of the Tarlton storage facility.

(For all licenced operating activities, tariffs are set and/or approved by NERSA.)• Construction of the New Multi Products Pipeline (NMPP).

INDIANOCEAN

LADYSMITH

BETHLEHEM

VOLKSRUST

NEWCASTLEKROONSTAD

KLERKSDORP

WITBANKKENDAL

WALTLOO

SECUNDA

STANDERTON

ALRODE

COALBROOKSASOLBURG

TARLTON

LESOTHO

NATAL

FREESTATE

GAUTENG

N

RUSTENBURG

NORTH - WESTMPUMALANGA

KWAZULU /

AIRPORT

VRYHEID

RICHARDS BAY

AFRICA

VAN REENEN

EMPANGENI

JAMESON

DURBAN

PARKCAPE TOWN

DURBAN

GAUTENG

SOUTH AFRICARICHARDS

BAYLESOTHO

SECUNDA

REFINED PRODUCTSCRUDE OILGASAVTURFUTURE NMPP PIPELINES

PPT-1741

PRETORIA WEST

THE EXISTING NETWORK ALSO INDICATING THE ROUTE AND POSITION OF THE NEW MULTI-PRODUCT PIPELINE (NMPP)

Wholesale margin50.868

7% Service cost recoveries10.800

1%

Dealers margin81.20010%

Zone differential, 15.500, 2%

TPL tariffs: 11.6Differential : 3.9

Fuel Levy160.000

20%

NMPP Levy7.5001%

Customs & exercise4.0001%

RAF levy72.000

9%

Petroleum Products Levy0.1500%

Incremental Inland Transport Recovery Levy

3.0000%

Basic fuel Price390.782

49%

PERSPECTIVE ON PIPELINES TARIFFS : AS PERCENTAGE OF FINAL FUEL PRICE

29

Example: Petrol price: Gauteng October 2010 @ 796.00 c/l

30

THE NMPP – STRATEGIC NEED FOR SOUTH AFRICA

2 Increase pipeline capacity between Durban and Gauteng

Sequence of events leading from Pipeline Capacity Study (Plan) to NMPP Project

Plan initiated in 1996. More capacity needed in 2015 at time. Annually updated.

2002 update : Higher growth rates. Need shifted to 2010.

Start with planning for new pipeline. Address both issues of DJP replacement and additional capacity (2003).

Transnet approval to build NMPP – January 2005.

16" pipe to be completed Q3 2010.

Project started (feasibility)

During 2006 : Shareholder debate and request to revisit project

20 year planning horizon

Annual GDP-growth of 6%

Major changes in South Africa Oil Industry

Termination of Sasol Supply agreement

Clean Fuel project

Increase in economic growth in country and therefore demand for fuels not seen before.

Consequence : Urgent 2006 update of plan.

Overall result : More pipeline capacity needed, earlier – need for Bridging Plan from 2006/2010

At the same time : 24" pipeline optimal solution for 20 year challenge – with ability to increase capacity on a phased-in-as-required (modular) basis.

Operational philosophy and network configuration change dramatically – trunkline with terminals concept.

31

THE NMPP – STRATEGIC NEED FOR SOUTH AFRICA

0

2005

2007

2013

2015

2017

2019

2021

2023

2025

2027

2029

2031

YEAR

Trunkli

ne Des

ign –5%

24” @ 3m/s (max)

24” @ 2m/s

12" - PRESENT

1 000

1 500

2 000

2 500

3 000

3 500

4 000

m³/h

500

2009

2011

BER – 3.6%

DESIGN GROWTH (PIPELINE)

PROBABLE GROWTH

LOW GROWTH

24" @ DIFFERENT FLOW-RATES

EXPANSION STEPS TO MEET 4,2% DEMAND

NMPPNMPP

2010

24” @ 0.5 m/s (calculated min)

24” @ 1m/s

Facilities and Fin. M

odel -4.2%

Flow

rate

nee

ded

NMPP INITIAL INVESTMENT AND MODULAR EXPANSIONS TO MEET DEMAND OF 4.2% Y-O-Y THEREAFTER

32

Contingency with MP Model should NMPP run

late (almost 2 years)

Planned NMPP completion

2015

Growth Line (example 5%)

Ops Changes

DRA's

DIC

Rail

Original Capacity AvailablePipe, Rail and Road

NMPP

Capa

city

nee

ded

from

coa

st

Time 2010

FIRST TPL BRIDGING PLAN BASED ON ORIGINAL CONCEPT OF “STAYING ABOVE THE RED LINE” (2006-2010)

DRA: Drag Reducing AgentsDIC: Diesel in Crude Pipeline

PERMANENT RAIL AND ROAD

33

Operational Changes

DJP design capacity - 74 Ml/w Operating capacity at 68 - 70Ml/wUntil the Bridging Plan intervention only 63Ml/w was possible because of inefficient industry

coordination, ordering, scheduling, injection and acceptance of productCooperation amongst all role-players to address inefficiencies and enhance utilisation of pipeline

network

DRAsDRAs are long-chain hydrocarbon polymers Had to do extensive testing with SAPIA members in early 2007 Was planned for April 2007, only achieved end November 2007

THE BRIDGING PLAN (PHASE 1) : DETAIL

34

DIC InitiativeCOP not used at capacity since clean fuel project - end 2005Opportunity to transport other petroleum products in the COPContamination of diesel & processing of crude-diesel intermixture is issueDIC initiative developed in detail between Transnet Pipelines and the inland Natref refinery

With OPS, DRA and DIC initiatives of Bridging Plan TPL has been able to keep the Gauteng region fully supplied. Last stock-outs in December 2005 (clean fuels). Economic downturn did have a positive effect. More than 3,8 billion litres of fuel delivered additional over the period by TPL. Role of road transport also important for successful supply.

Rail & Pipeline Cooperation (Durban-Gauteng Corridor)Allocate more Rail Tank Cars (RTCs) to transport fuels from DurbanChallenge is not to invest in new RTCs but to improve use of present fleet by improving on the

turnaround time of the RTCsOther initiatives like Jet-fuel to continue and be increased

THE BRIDGING PLAN (PHASE 1) : DETAIL

35

36

WC2010 SUCCESS STORY

SUCCESSES OF COMBINED TRANSNET PIPELINES AND TRANSNET FREIGHT RAIL PLANS TO SUPPLY OR TAMBO AIRPORT DURING FIFA WORLD CUP 2010

No stock-out occurred during period.

TFR delivered 16Ml/w ex Durban on continuous basis.

TPL delivered 24 Ml/w ex Natref as planned.

All refineries supplied as planned.

Role of co-ordinating meeting between all roleplayers, lead by Department of Energy (DOE),

paramount in success.

Competition Commission exemption was critical for success.

TPL Simulation model developed as part of process, key in daily monitoring and overall

success of managing the project.

Silent success story of Fifa WC2010.

NMPP LATEST DELAYS : DE-RATING OF THE DJP AND SECURITY OF SUPPLY RISKS AND CHALLENGES

Latest delays on NMPP will require the DJP to continue running at full capacity for at least another 9 months beyond 31 March 2011 to cope with security of supply challenges to Gauteng.

After this, DJP is de-rated and run in combination with the NMPP trunkline. (By-passing TM1 as originally planned as part of By-pass project)

Intelligent pigging inspection of the DJP has just been completed. Final report not available as yet but the interim results indicate that the line still needs to be de-rated by 1 April 2011.

A direct consequence of this is increased of risk of security of supply to the inland market. Alternative modes of transport will be needed to cope with this requirement (road, rail or combination).

The current Bridging Plan must be enhanced to ensure security of supply.

Plans will be developed to address two distinct periods, namely,o April – December 2011 (only downrated DJP, no NMPP trunkline (Bridging Plan II)o Post December 2011 (downrated DJP plus partial NMPP trunkline: By-pass project)

For period April – December 2011 detail plans need to be developed between DOE, DPE, TPL, TFR and Oil Industry to cope with the challenge of de-rating the DJP before the NMPP is available – Phase 2 of TPL’s present Fuel Bridging Plan.

37

38

Detail of Action Plans required during 2012 and 2013 (from 1 January 2012) – By-pass project

1. Key principle of actions based on concept of simultaneous use of present DJP (to a de-rated service-level) and the NMPP whilst by-passing Terminal 1 (TM1) in Island View (Port of Durban).

2. Use of present Transnet Pipelines (TPL) Durban depot in Island View on a tight-lining basis is key to concept.• Present TPL feederlines to Durban depot will be used.• Present meters and pumps with a modified manifold will be used to feed both the DJP and NMPP

simultaneously.• On exit-side of present depot a link needs to be made to presently mothballed 18" pipeline of TPL• This 18" line will then be connected to the new 24" NMPP trunkline at exit-side of TM1, now to be

commissioned later.

3. Through present TPL Durban depot the NMPP will be able to run on diesel at a flowrate of 500m3/h.

4. Flowrate (as a multi-products pipeline) of the DJP will be decreased from present 520m3/h with DRA’s to 400m3/h still with DRAs in order to reduce operating pressures required for prescribed de-rated condition of pipeline for continued use (initial expert requirement).

5. Above will provide the ability to by-pass TM1 on a tight-lining basis and will be able to meet with projected demands in 2012 and 2013.

6. NMPP able to function as multi-products line @ 500m3/h (role of TM2) – further reduced risks on DJP.

ACTIONS TO MITIGATE SECURITY OF SUPPLY AND DJP RISKS

39

ACTIONS TO MITIGATE SECURITY OF SUPPLY AND DJP RISKS

40

TIGHT-LINING: FEEDER LINES THROUGH METERS AND DIRECT TO PUMPING STATION AND INTO PIPELINES

FUTURE NMPP: FEEDER LINES THROUGH METERS AND DIRECT TO ACCUMULATOR TANKS FROM TANKS TO PUMPING STATION AND INTO PIPELINE

TANKS

NEW COMPANYFEEDER LINES

INTO TM1

PUMPINGSTATION TM1 (TERMINAL 1)

LINK LINE

TRANSNETPIPELINESEXISTINGFEEDER LINES

METERSPUMPINGSTATION

EXISTING DURBAN PUMP STATION

LINK LINE

METERS

DURBAN MANIFOLD SPLIT TO RUN BOTH DJP AND NMPP AT THE SAME TIME

DIAGRAMMATIC LAYOUT OF THE PROPOSED PUMPING PROCEDURE WHEN USING BOTH DJP AND NMPP AND BY – PASSING TERMINAL1 (TM1) (PRINCIPLE OF TIGHT - LINING)

ACTIONS TO MITIGATE SECURITY OF SUPPLY AND DJP RISKS

41

Initial Task Team similar to that for Fifa World Cup 2010 approval to implement Nov 2010

Sub Task Team ..

Sub Task Team 2

TRANSNETResponsible for Security of Supply

TRANSNET OIL COMPANIES OTHERS

PROJECT MANAGER

Pipelines (TPL)

Rail (TFR)

Ports (NPA)

Sapia

BP

Chevron

Engen

PetroSA

Sasol

Shell

Total SA

Dept Energy (DoE)

Dept Transp (DoT)

Airports (ACSA)

Ortia (ORTAFS)

Road Haulers (RFA)

Provincial DoT's

STEERING COMMITTEECEO Level

(TPL, TFR, Sapia, DoE, DoT, DPE)

TASK TEAM

Sub Task Team 1LPT

OtherVuyo

Khulaco

Other

PHASE 2 OF TPL’S BRIDGING PLAN (APRIL – DECEMBER 2011) (BPII)

PHASE 2 OF TPL’S BRIDGING PLAN (APRIL – DECEMBER 2011) (BPII)

QUANTIFYING THE TASK

42

43

PHASE 2 OF TPL’S BRIDGING PLAN (APRIL – DECEMBER 2011) (BPII)

SOLUTIONS AND PRINCIPLES

Principles to apply in reaching a solution :

• Focus on Transnet Freight Rail solutions before road solutions – first prize is to keep road at present

levels.

• Focus on block trains as opposed to General Freight Business (GFB).

• Focus on depot bridging volumes as opposed to direct to customer deliveries (smaller volumes).

• Focus on shifting coastal and on rail volumes rather than current rail volumes ex inland refineries.

• Avoid capital investment that cannot be used after the end of BPII.

• Take into account the long term sustainability and growth prospects of both rail and pipe.

• Utilise synergies between rail and pipe.

• Apply lowest cost options first.

44

PHASE 2 OF TPL’S BRIDGING PLAN (APRIL – DECEMBER 2011) (BPII)

• Replace remaining pipeline deliveries to Ladysmith and Bethlehem with rail ex Durban [Permanent Solution after NMPP]

• All Jet Fuel from DBN to Ortia by rail, not pipe [Permanent Solution after NMPP up to 16ml/wk]

• Shift on-railing volumes and capacity to rail ex coast. [Temporary Solution : After BPII, capacity can be shifted back to on-railing] :

– Bloemfontein / Kimberley ex PE/EL instead of Kroonstad

– Mokopane ex DBN instead of ex Waltloo– Botswana ex DBN instead of Tarlton

• Maximise current rail volumes on the Energy Express to Nelspruit, Rocky Drift, Matsapha ex DBN [Permanent / temporary solution]

• Rail from coast to inland pipeline terminals (increase rail to Kroonstad, Waltloo, Langlaagte, Rustenburg, or new rail to Alrode, Pretoria West, Klerksdorp, Witbank [Temporary solution – volumes should return to NMPP after BPII]

• Replace Overland Exports to Zim/Zam/DRC ex SBG/SEC with deliveries ex DBN, Maputo or Beira. [Temporary solution, should be reversed after BPII]

CONCLUSION

45

The NMPP is a strategic legacy investment which will give South Africa security of fuel supply for the

inland market for the long term.

It will be an asset to be proud of - environmentally friendly, safe, enabling economic growth and

providing cost efficient fuel supply.

The NMPP will be delivered successfully within the revised cost and timelines

There are good project controls and cost reviews in place and the NMPP will be benchmarked against

other international pipeline investments

World class multi-product pipeline that will secure the supply of petroleum products for the long term