TRANSNET

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1. Transnet - Who we are

TABLE OF CONTENTS

1

2. Port complimentary system

3. Market Demand Strategy

4. Port infrastructure development

4. Future Plans

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• 16 Cargo Terminals operating across 7 SA ports

• Revenue 7 bn

• Assets R12.3 bn

• 6 210 employees

Supporting

2

• 7 Commercial ports along 2 943km of coastline

• Revenue R8.4bn

• Assets R60.6 bn

• 3 420 employees

• 20 500 km of railway track

• 182 million tons of freight

• General freight & 2 heavy haul export lines

• Revenue 27.6 bn

• Assets R61.3 bn

• 26 850 employees

• Support TFR for rolling stock and TPT for lifting equipment maintenance

• Revenue 11.2 bn

• Assets R7.6 bn

• 12 570 employees

• 18 billion litres of petroleum products and gas through 3 000 km of pipelines, mainly to Gauteng

• Revenue 2.1 bn

• Assets R19.3 bn

• 630 employees

• R300 billion of capital investments over 7 years

• CSI in Education, Health, Sport, Arts & Agriculture

• Property Management

• Transnet Schools

Capital

Projects

Transnet

Foundation

Property

Schools

Transnet

Pipelines

(TPL)

Transnet

Engineering

(TE)

Transnet

Freight Rail

(TFR)

Transnet

Port

Terminals

(TPT)

Transnet

National

Ports

Authority

(TNPA)

Pipelines Rail Ports

Transnet – Who we are

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Complimentary port system

7. Saldanha Bulk (Export iron ore),

Breakbulk

6. Cape Town

Containers, Breakbulk

4. Ngqura Containers

3. East London Containers, Breakbulk, Agri-Bulk, Automotives

1. Richards Bay Bulk (Export coal, magnetite, Chrome), Breakbulk

2. Durban Containers, Breakbulk, Agri-Bulk, Automotives

5. Port Elizabeth Containers, Breakbulk, Bulk, Automotives WESTERN CAPE PORTS

EASTERN CAPE PORTS

KZN PORTS

3

Cargo handled in 2013/14 4.5 Million Containers 77.1 Million Tons of Bulk Cargo 11.2 Million Tons of Break-Bulk 0.7 Million New Automotive Vehicles

PAGE PAGE 4 Source: Africa Team analysis

TRANSNET’S Market Demand Strategy 2014 to 2020

• R300bn Transnet-wide capital investment programme

over next 7-years

• Expanding rail, port and pipeline infrastructure

• Increase in capacity to meet market demand

• Continued financial stability and strength

• Significant productivity and operational efficiency

improvements

• Shift from road to rail – reducing the cost of doing

business and carbon emissions

• Enabling economic growth

• Job creation, skills development, localisation,

empowerment and transformation opportunities

• R77bn will be invested in ports

Divisional split (Rbn)

11

30

47

4

201 4

Other

TPL

TPT

TNPA

TRE

TFR

Other

Commodity Split (Rbn)

30

26

3 9

24

25

32

151

Other Bulk

Break Bulk

Piped Products

Containers (Ports)

Export Iron Ore

Export Coal

GFB

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Source: Africa Team analysis

Civil / Infrastructure vs

Cargo Handling Equipment

TPT 7-year Capex Programme (R30bn):

TPT Year 1 (2013/14) Forecasted spend (R 1,859m): Infra vs. Equipment, Port View, Replacement vs. Expansion

Cargo Handling Equipment R 1,369m (74%)

Civil / Infrastructure R 489m (26%)

RBY R 550m (30%)

DBN R 513m (28%)

NGQURA R 528m (28%)

SLD R 116m (6%)

CTN R 106m (6%)

PE / EL R 45m (2%)

Port View

Replacement vs. Expansion

Total ETC

7 Year Plan

Year 1

2013/14

Year 2

2014/15

Year 3

2015/16

Year 4

2016/17

Year 5

2017/18

Year 6

2018/19

Year 7

2019/20

TPT 29 677 1 859 2 827 4 772 5 496 5 247 5 241 4 235

Rbn

Expansion R 789m (43%)

Replacement R 1,069m (57%)

Port Terminals infrastructure development

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Investment climbed from R131m in 2001/02 peaking at R3.2bn in 2008/09

TPT Investment (R2,363m) (5 years: 2001/02 to 2005/06)

TPT Investment (R10,277m) (5 years: 2006/07 to 2010/11)

2004/05 2003/04 2002/03 2001/02 2005/06 2009/10 2008/09 2007/08 2006/07 2010/11

Port concessioning

dilemma

Infrastructure backlog catchup & expansion drive

Global recession & investment

cutbacks

6

7

2012/13 2011/12 2010/11 2008/09 2013/14 2017/18 2016/17 2015/16 2014/15 2018/19

3200 2337 913 1137 2551 1859 3492 7670

9545

2812 2670

2009/10

Boom-time Ends

Global recession Market Demand Strategy

TPT R30bn 7yr Investment Plan

Transnet Port Terminals 10 capex history

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• The Port of Durban is undergoing a multi-year project to ramp up of capacity ahead of projected demand.

• Planned extension of the Pier 1 terminal into Salisbury Island will increase current capacity from 700,000 TEUs to a potential 1.3-million TEUs by 2016.

• Pier 2 capacity is to be increased from 2.1 million TEUs in 2011/12 to 2.5 million TEUs by 2013/14 and 3.3 million TEUs by 2017/18.

• Berths 203, 204 and 205 on DCT’s North Quay is currently being taken out of service one at a time to undergo deepening and refurbishment over a 74 month period which started in June 2012.

• Container capacity is also being created in other niche terminals such as the Durban RO-RO and Maydon Wharf Terminal (a predominantly break-bulk and RORO facility, with specialised capacity to handle containers), through the acquisition of new equipment, such as mobile cranes, and various infrastructure upgrades to deal with the container traffic diverted from DCT during the capacity upgrade.

7

Future Plans

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Port of Durban

Isipingo

Sapref Refinery

Old Durban Airport

Toyota Factory

N2 Freeway

Mondi

Umlazi

8

PORT OF NGQURA DURBAN MPT TERMINALS – POINT RORO

DURBAN DIG-OUT PORT - Ex Durban International Airport (DIA) Site

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Current Port of Durban

Container Terminals

New Dig-Out Port

Automotive Terminal

Liquid Bulk Terminal

Breakwater and Entrance Channel

9

PORT OF NGQURA DURBAN MPT TERMINALS – POINT RORO

DURBAN DIG-OUT PORT - artist’s impression

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Concluding remarks

10

• Future freight transport demand in

Africa is tied to growth in international

trade.

• As ports would be increasingly

challenged by intensified traffic,

greater ship size and transhipment

growth, ports capacity may have to

be expanded in the future.

• Ultimately, all countries can benefit

from a fully developed transport

infrastructure in Africa.

• Greater collaboration will be key in

optimising the entire logistics supply

chain.

• Infrastructure development is one of

the key drivers of the New Growth

Path, Transnet has an important role

to play in this new journey.

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20 THANK YOU