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OPERATION PHAKISATRANSNET NATIONAL PORTS AUTHORITY (TNPA) B2B NETWORKING FORUM28 JUNE 2016

HYATT REGENCY HOTEL, ROSEBANK

Transnet National Ports Authority

Operation Phakisa overview – Private Sector Projects

- Saldanha

- Richards Bay

- East London

Refurbishment of Existing Ship Repair Facilities

Supporting activities

Concluding remarks

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 SupportingPipelinesPorts

TNPA is an integral Operating Division of Transnet SOC Ltd

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South Africa’s Commercial Ports : An integrated system of Complementary Regional Ports and Rail Corridors

Saldanha Bay

Cape Town

East London

Port ElizabethMossel Bay

Durban

RichardsBay

Ngqura CENTRAL PORTS

EASTERN PORTS

WESTERN PORTS

Port – Rail Corridor

Port Interconnect

Cross-border Interconnect

TNPA owns and manages all commercial ports in the South African Port System 4

South Africa is uniquely positioned to leverage its infrastructure, location, expertise and existing downstream industry to service the Oil and Gas Industry

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Operation Phakisa : GDP contribution and job creation inMarine Transport and Manufacturing (MTM) Sector

Initial lab vision Target for interventions

GDP Contribution

Job Creation

Baseline (2010)

Accelerate the GDP contribution of the sector

▪ Increase the contribution to GDP by R14-23bn by 2019

▪ ~R15bn

Increase total employment

▪ Increase the number of total jobs created by 40,000-50,000 jobs by 2019

▪ ~15,000 jobs

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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 Trainingiv. RPL – Recognition of Prior Learning

v. CBMT – Competency-based Modular Training

These initiatives require capital investmentover the next 5 years and will provide supplier development opportunities to maintain and refurbishexisting facilities.

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Private Sector Projects

Port of Saldanha

Port of East London

Port of Richards Bay

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Flagship Port Development : Establish purpose-built oil and gas port infrastructure and appoint Facility Operators – Saldanha Bay

Establish a cluster of services to support the Oil and Gasindustry off the West Coast of Africa and the SA Coastwhere existing/new exploration/production takes place;

Initiative 2 comprises of the following projects atSaldanha :

• Offshore supply base (OSSB), Quay 294m, 6.9mdraft;

• Rig repair facility (Berth 205), Quay 380m, 21mdraft; and

• Ship repair facility (Mossgass Quay), Jetty1000m, 8m draft.

Construction and operation of these facilities will beoffered to private operators through a concessionarrangement:

• OSSB : Terminal and landside superstructure;• Berth 205 for rig repair, including related

landside superstructure investments; and• Ship repair facility : Mossgas Quay.

Required investment• Investment: R13.2bn (estimated)

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Nature Category Timing for Availability of services to market Within the Site (Quay and Back of Quay) TNPA Land

Compulsory

Anchor Services

Scheduled Construction Completion Date under the Terminal Operator Agreement

Note: bidders to indicate schedule for construction (e.g. superstructure, warehouses etc.) in their Bid Response - this

deadline become binding as the Scheduled Construction Completion Date under the Terminal Operator Agreement.

Material Loading & Offloading Facilities

Storage Facilities (including reefer points);

Ancillary Bunkering & Fuel, Oil and Lubricants refill services

Water refill

Offices facilities

Core Services

As required by the market and mutually agreed with TNPA (*) or before if elected by the Terminal Operator

Note: investment to respond to market demand or earlier

Handling of Slops / Oil WastePipe

Yard including coating facilities

Non compulsory

Authorised Services

At Operations discretion to the extend in line with Bid Response and Terminal Operator Agreement and notified

to TNPA Note: investment for the Authorised Services to be

undertaken at bidders . Authorised = Approved Services selected by the Bidders and

the Proposed Services approved by TNPA

Approved ServicesCustoms and Clearing Services, lease of a portion of

the Quay for maintenance & repair services to vessels including the provision of a floating dock,

accommodation, lease of a portion of the Quay for boat building

Proposed Services: as proposed by Bidders in their Bid Responses and be

approved by TNPA as part of evaluation process,

• The scope of services are categorized to provide flexibility to the Operator to provide services responding to market demand, aswell as to allow for time to develop the facility as a fully-functional offshore supply base;

• All Services can be rendered on land made available by TNPA or on land within the Saldanha Bay IDZ, adjacent to the port;

Saldanha – Supply Base Facility Scope of Services and Land Footprint

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Saldanha – Supply Base Berth

The Berth is being refurbished by TNPA and will be operational July 2016

The Saldanha Port Developments are further supported through the Industrial Development Zone located adjacent to the port – additional land is available in the IDZ for investors to provide services supporting port facilities.

The Saldanha Bay IDZ

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OSSB Facility :

RFP to Market: April 2016

Bid Closing : October 2016

Operational Date : 2019

Mossgass & Berth 205 :

EOI to Market: May 2016

EOI Closing Date : June 2016

RFP to Market : Sep 2016

Bid Closing : April 2017

Operational Date : 2018/2019

Timeline : Port of Saldanha Phakisa Projects

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Saldanha : Mossgas Jetty (Artist Impression)

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Saldanha : Rig Repair Berth 205 (Artist Impression)

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Port of Richards Bay

A ship repair facility provided by the private sector in the Port of Richards Bay;

TNPA wants to adopt a flexible and exploratory approach to allow private sector to grow the market :

• Allow private sector to consider opportunities in oil and gas, ship/rig repair and maritime vessel building to meet market requirements at Richards Bay;

• A low risk, flexible capacity facility for ship/rig repair at Richards Bay :• Floating Dock type (Repair Quay); and/or• Fixed Dock Repair Facility (Causarina);

• Repair Berth 300m length, 8m draft;• Port developments with involvement from Richards

Bay IDZ;

Required resources• Investment: R900m (estimated)

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Richards Bay : Ship Repair Sites

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Richards Bay : Ship Repair (Artist Impression)

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Port of East London

• Unlocking boat building in East London with a focus on potential niche markets of tug boats and navy vessels;

• The upgrade and refurbishment of the existing drydock infrastructure is being undertaken at the moment;

• Opportunity to refurbish the existing slipway facility;

• Investment and incentive combination to the boat or ship building industry, linked to developmental commitments (e.g. investment, job creation, skills development, supplier development);

• Sites identified : Dry Dock, Slipway;

Required resources• Investment: R 515m (estimated)

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East London : Dry Dock and Workshop

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Dry Dock : Length 210m, Beam 26.5m, Draft 8m, Workshop 2 690m2,

Repair Quay 106m, 10.7m depth

Ship/Rig Repair and Boat Building :

EOI to Market: May 2016, EOI Closing Date : June 2016

RFP to Market : Sep 2016, Bid Closing : April 2017;

Planned Facilities estimated by 2019;

Timeline : Port of Richards Bay & East London

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Refurbishment of Existing Facilities

Ports of Durban, East London, Port Elizabeth, Mossel Bay, Cape

Town

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Operation Phakisa Projects (Existing Facilities) : Various projects

Project Objective Estimated Co-funded

investment required

EstimatedJobs created

Estimated GDP

Contribution

Maintain and refurbish existing facilities

Refurbish existing ship repair facilities at all ports to effectivelyservice current and

future demand

R2bn

Target 20 000 (incl.

multiplier) by 2023

R6.5bn

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Existing facilities : Durban

1.50 5.00 3.50

14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 ETC

Replacement of South side crane rail at Dry Dock

Erect perimeter wall on north side of Drydock

Repair of inner and outer caisson of Dry Dock

Execution: Dockyard Lighting and Low Voltage Electrical Distribution Upgrade

Welding Equipment Set for Shop 24

Replacement of Ship Repair Jib Cranes

Drydock 6 Tons Forklift

Drydock Compressors

Replace Floating Dock

Feasibility: Upgrade of Dockyard Infrastructure (E&M)

Repair Concrete works in the Dock

Execution: Upgrade of Dockyard Infrastructure (E&M)

4.78 5.00 9.00

5.00 95.00 20.00

5.00 16.60

1.57

1.23

7.50

1.00 5.00 4.00

10.00 50.00 70.00 40.00

10.00

DURBAN

Project

FEL 3: Geotechnical study and designs underway

Comments

Completed

FEL 4: Repair of outer caisson completed. Programmefor inner caisson under development

Completed

Completed

FEL 3 – 4: formulate designs and approve procurement

Completed

FER: Process business case

FEL3 - 4 - : TNPA has opted to build the floating dock locally in Durban and to asses the existing dock for refurbishment

FEL3: Completed. Work breakdownstructure finalized. Fast track FEL 4to commence in 2016/17

FEL4: Works commenced by RME

Existing facilities : Cape Town and Mossel Bay

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2.00 33.00 35.00 35.00 35.00

•

14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 PM ETC

Refurbishment of Sturrock Drydock

Refurbishment of Robinson Drydock

Refurbishment of Synchrolift

Replacement of water circulating pumps at Sturrock dry dock

Replacement of Ship Repair Jib Cranes

Refurbishment of Cradle & Side Slipway

Reconstruct lead-in jetty to slipway

Slipway upgrade

1.70 3.90 7.63 12.00 15.63 10.00

10.00 50.00 240.00 350.00 100.00

25.00 50.00 195.00

3.00

5.00 10.00

CAPE TOWN

Project

1.00 10.00 20.00 19.00

1.50 1.20

MOSSEL BAY

FEL 3 - 4: Execution approvals underway

Comments

FEL 3 - 4: Execution approvals underway

FEL 4: In execution phase.

FEL 3 – 4: Tender awarded. Execution underway

FEL 3 - 4: Formulate designs and approve procurement

FEL 2: Technical assessments and development of high level options

Initiative 5 - Existing facilities : East London, Port Elizabeth and Saldanha Bay

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14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 ETC

Refurbishment of Graving Dock + Refurbish Pumps

Refurbishment of Slipway Area

Replacement Lead-in Jetties

40 ton Slipway Refurbishment (Feasibility & Execution) New 100t hoist

Modifications of 1200 ton slipway cradle

Refurbish and upgrade General Maintenance Quay to an Offshore Supply Base

3.00

EAST LONDON

Project

5.16 54.47

SALDANHA

PORT ELIZABETH

10.73 51.50 81.93

Comments

FEL 3 - 4: Electrical and civil upgrade underway. Jib Crane feasibility study underway

Execute as PSP

FEL 4: Execution: to be completed in 2017

FEL 4: Execution: to be completed in 2017

FEL 4: Execution: to be completed in 2016

FEL 4: Execution: To be completed in June 2016

Development of Composites Cluster (Boat building in PE)

3.00 Lease concluded

Existing facilities – Example Caisson Refurbishment

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Existing facilities : Slip way, Lead In Jetties and 90 ton boat hoist - Port Elizabeth

Total value approx. R186m

Spend to date: R110m

Local spend: R80m

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Port Construction Jobs created

Permanent jobs created

Durban 68

East London 0

Port Elizabeth 79

Mossel Bay 0

Cape Town 0

Saldanha 30

TOTAL 177

Jobs created through Initiative 5

• Provision of Operation Phakisa Training Centres;

• Proposed Marine R&D Centre;

• R1.4bn build of 9 TNPA harbor tugs at the Port of Durban• Approx R700m for Supplier Development Plan

• Training of technical personnel

• Programme for build of dredgers support localization

• Support for aquaculture

• Support for Oil and Gas Developments and Liquid Bulk Terminals

• Coastal and Marine Tourism Development

Supporting activities

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• Country growth and expansion of the economy is dependent on port capacity – Blue / Oceans economy as a “new” driver for economic growth and job creation;

• New Port Facilities :

• Private sector Investment opportunities;

• Supplier Development opportunities;

• Close alignment with IDZ’s;

• Existing Facilities :

• Sustaining capacity for repairs;

• TNPA is fulfilling its strategic role as an Infrastructure Provider and developing an integrated port system to grow the economy;

Closing Remarks

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