Michelle PhillipsTransnet Port Terminals: Chief Executive Officer (Acting)

South Africa: Beyond port boundaries - connecting the foreland, hinterland and developing communities.

Transnet Port Terminals

Transnet: Overview

• Eight (8) commercial ports along 2 954 km of coastline.

• 4,182 Employees contributed R12.5 billion to Transnet’s 2018/19 Revenue

• Manages, operates and maintains a network of 3 800 km of petroleum and gasline infrastructure that traverses five (5) provinces.

• 672 Employees contributed R5.3 billion to Transnet’s Revenue

• Supports TFR for rolling stock and TPT for lifting equipment maintenance.

• 10,370 Employees contributed R10.5 billion to Transnet’s Revenue

• Sixteen (16) cargo terminals operating across seven (7) ports.

• 7,392 Employees contributed R13.1 billion to Transnet’s Revenue

• 20 500 km of railway track;

• General fright and two (2) heavy haul export lines.

• 26,312 Employees contributed R43.6 billion to Transnet’s Revenue

• TGC advises Transnet on the planning and implementation of capacity development solutions;

• TF implements sustainable developmental projects through the efficient use of resources;

• TP manages Transnet's Commercial and Residential properties.

Transnet Group CapitalTransnet Foundation

Transnet Property

Transnet National Ports

Authority

Transnet Pipelines

Transnet Engineering

Transnet Port Terminals

Transnet Freight Rail

Transnet SOC LTD

TNPATFR TPTTE TPLTGC TF TP

Transnet: Mandate, Vision and Mission

• Linking economies; connecting people; growing Africa!

• Fuelling Africa’s growth and development as the leading provider of innovative supply chain solutions

• Assist in lowering the cost of doing business in South Africa; • Enabling economic growth; and • Ensuring security of supply through providing appropriate (port, rail and pipeline infrastructure in a cost-effective and

efficient manner).

Mandate

Vision

Mission

Financially self-sustaining

Competitive industrysupply chains

• Road to rail shift

• Increased maritime connectivity

• Capacity ahead of demand

• Regional integration

• Skills development

• Transformation

• Supplier development

• Community development

• Industrial policy support

• Environmental stewardship

Globally competitive freight system

Key implementingagent of the

Developmental State

Responsible corporate citizen

Port, Rail

and

Pipeline

Operations

Transnet: Interpreting the Mandate

• Transnet Port Terminal’s (TPT) core competency is in port operations. It plays a strategic role in the South African economy by enabling the efficient flow of cargo

through its sixteen (16) port terminals.

• TPT’s key contribution to enabling economic growth in South Africa is through ensuring security of supply of port terminal operations in a cost effective and efficient

manner and within acceptable benchmark standards.

• TPT is responsible for the commercial handling services of sea-route freight across imports, exports and transshipments in containers, bulk, break-bulk andautomotive. TPT operates port terminals in seven (7) South African commercial ports.

• TPT’s key cargo handling equipment, includes ship-to-shore cranes, straddle carriers, rubber tyre gantry cranes, tipplers and conveyors.

• Key technologies at TPT include:

NAVIS Sparcs N4 Terminal Operating System – operating in nine (9) container terminals and City Deep (Gauteng);

General Cargo Operating System (GCOS) – currently implemented in seven (7) marine terminals across the TPT portfolio and one (1) internationally in the port

of Benin;

Electronic Data Interchange (EDI) - is well-established in the operations area for reporting of large numbers of equipment moves.

Durban Container Saldanha Iron OreRichards Bay Multi Purpose

Transnet Port Terminals: An introduction

• TPT operates sixteen (16) seaport terminals in seven (7) South African commercial ports. The port locations and commodities

are illustrated below.

TPT: Complimentary port system

A

A

AA

A

A

A

AA

A A

Fe

Fe

FeFe

Fe

Fe

DD

DD

D

D

DD

D

D

D

D

D

D

A

UU

Mn

U

Mn

Mn

Mn

Mn

CuCu

Cu

Cu

CuCu

CrCr

Ni

Cr

Cr

Ni

Fe

D

Pt

Pt

Kimberley

Klerksdorp

Dundee

Sishen

Pietersburg

Pretoria

Okiep

Cape TownPort Elizabeth

Durban

Richards Bay

NiCr

Aircraft, chemicals, electronics,

food products, iron and steel,

machinery, metal fabrication, motor

vehicles, oil refining, oil from coal,

and textiles.

South Africa: Industry and Mining (Hinterland centric)

Chemicals, paper. Oil refining,

rayon textiles, rubber goods, sugar

milling and tanning.

Food products, furniture, oil

refining, textiles and wine.

Motor vehicle assembly, textiles

and tires

Major industrial areaHydro-electric power plant

Coal field ( mine)Goldfield ( mine)

AsbestosChromiumCopperDiamondsIron OreManganesePlatinumUranium

A =Cr =Cu =D =Fe =Mn =Pt =U =

• Economic activity across South Africa is unequally distributed and largely concentrated in the Gauteng province.

Source: Recreated from https://mapcruzin.com/free-south-africa-maps.htm

Source: https://www.transport.gov.za/documents/11623/39906/7_FreightTransport2017.pdf/a3f7cb55-8d77-4eea-b665-4c896c95a0d8

South Africa: Well developed road and rail networks

Freight tonnage movements for Road and Rail (2013)1

Logistic costs: Transport and road dominance

• In South Africa, transport is the biggest component of totallogistics costs, accounting for 42% 1.

• Road transport is currently the primary mode of transportfor freight, with approximately 79% of goods moving alongthe main freight corridors going via road 1.

• Domestic transport costs act as a strong constraint toexports from Africa2

TPT: Delivering on the Transnet mandate

• Lowering domestic transport costs in South African countries can contribute to exports and, more generally, to economicgrowth and development2.

• One way of lowering domestic transport costs is to establish inland terminals closer to exporters and importers.

• Freight in South Africa is concentrated on a limited number of key national corridors, providing key opportunities forTransnet, as the custodian of the rail network, to provide intermodal solutions.

• As elements in larger systems of circulation, Port Terminal operators can deliver value to customers (shipping lines,logistics service providers and shippers) through the provision of services that add value within the supply chains of whichthey form part3.

• As a successful freight handling terminal operator, TPT is leveraging its core competency to provide hinterland intermodalsolutions that align with production centers and enable cargo to shift from road to rail.

• This is inline with TPT’s strategic intent.

TPT: Strategic intent

TPT’s has identified its benchmark standard as that of a globally recognised top global port terminal operator. This vision willsee its operations expanding beyond quayside activities; it will be a company characterized by:

• A range of logistics and value-added services;• Service innovation;• An expanded delivery network including hinterland terminals and back-of-port operations (depots and warehousing);• Partnerships with other African countries; and• Digital services and solutions.

Clearing and forwarding

Digital Innovation

Intermodal and Logistics Services

TPT: Hinterland Terminals

Bulk (Chrome) : 818k tons

Pendoring

Bulk (Manganese) : 273k tons

Newcon

Bulk (Manganese) : 1.2m tons

Lohathla

TPT: Case Study – Pendoring Inland Terminal

Case Study

TPT: Case Study – Chrome to RCB Original operation

• Chrome mined near Britz, North West Province;• Transported by road to the Port of Richards Bay, KwaZulu-Natal;• Approximately twenty nine thousand trucks per annum required to move

[chrome between the inland mines and the Port of Richards Bay;• Significant traffic and congestion at the terminal.

= 1000 trucks

Port of Richards Bay

Chrome mines

TPT: Case Study – Intermodal operation

• TPT initiated an efficient logistics solution through the establishment of an inland intermodal terminal at Pendoring (near the chrome mines);

• Chrome is consolidating at the terminal and loaded onto rail for transport to the Port of Richards Bay,

• The establishment of the terminal has lead to:

the employment of approximately thirty (30) local residents;

Significant reduction in carbon emissions; Significant reduction and traffic and congestion at the Port.

Port of Richards Bay

Pendoring Inland Terminal

Chrome mines

TPT: Case Study – Pendoring Inland Terminal

1 Havenga, J.H.; Simpson, Z.P., King, D. de Bod, A. and Braun, M. 2016. Logistics Barometer South Africa 2016. Stellenbosch University.2 Cronje, E.; Matthee, M. and Krugell, W. The Role of Dru Ports in South Africa. Transport and Communications Bulleting for Asia and the Pacific. No. 78, 2009.3 Jean-Paul Rodrigue & Theo Notteboom (2009) The terminalization of supply chains: reassessing the role of terminals in port/hinterland logistical relationships, Maritime Policy & Management, 36:2, 165-183, DOI: 10.1080/03088830902861086; To link to this article: https://doi.org/10.1080/0308883090286108

References

Thank you

References