Opportunities at the Ports Transnet Port Terminals on

Opportunities at the Ports

Transnet Port Terminals on supplier and enterprise skills

development Ntombeziningi Shezi

23 February 2016

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Contents

• Introduction to Transnet

• Opportunities in the ports

– Skills Development

– Enterprise Supplier Development in TPT

– Procurement Opportunities

• End

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TPT is a division of Transnet SOC Ltd

20,500 km rail network 240 million tons of cargo 4.7 million TEU 18 billion litres of fuel

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Port Terminals operates container terminals at the ports of:

– Durban,

– Port Elizabeth,

– Ngqura and

– Cape Town.

Port Terminals has an

annual capacity of

over 6.4 million TEUs

Container Terminals

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With a market share of 52%, Port Terminals handles mineral bulk at the ports of:

– Richards Bay,

– Port Elizabeth and

– Saldanha,

and handles agricultural bulk commodities at the ports of:

– Durban and

– East London.

Bulk Terminals

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Break-Bulk is handled in all the ports where TPT operates, listed below, except Ngqura and is best described as freight that is not classified as bulk and is not containerised:

– Richards Bay, – Durban, – East London, – Port Elizabeth, – Cape Town and – Saldanha

Break-Bulk Terminals

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Port Terminals has a capacity to handle 850 000 units pa and operates automotive terminals at the ports of:

– Durban,

– East London and

– Port Elizabeth.

Automotive Terminals

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Transnet SOC Ltd’s Integrated Port Network

Port Infrastructure:

• 18 container berths (4 Terminals)

• 5 automotive berths (3 Terminals

• 21 mineral bulk berths (3 Terminals)

• 6 agri-bulk berths (2 Terminals)

• 37 break bulk berths (6 Terminals)

• 16 liquid bulk berths

•

MOSSEL BAY

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TPT’s Vision

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Transnet’s Market Demand Strategy

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Government’s “New Growth Path”

• The New Growth Path (NGP) is a policy developed by Government in 2010 to ensure the Government’s development objectives for South Africa are achieved (e.g. transformation, job creation, rural development).

• Transnet supports this policy and plays an important role in making sure these objectives are achieved.

• The manner in which Transnet purchases goods and services as an organ of state must help develop and transform the local supply base.

• Transnet engages in targeted supplier development initiatives to support localisation and industrialisation and provide meaningful opportunities for Black South Africans, focusing on Youth (18-35), Black women, People with Disabilities,

small businesses and rural integration.

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Youth Development Opportunities

WORK-INTEGRATED LEARNING OPPORTUNITIES

Engineer in Training:

Engineers in Training, are bursary holders who are afforded the opportunity to gain 24-months of workplace exposure as part of the bursary agreement. Applications are accessible electronically or manually during 1 May – 31 July annually. Once the Degree has been achieved successfully, a Engineer in Training Programme (EIT) is offered to those Engineering bursars who take up employment with Transnet.

Engineering Technicians (P1/P2)

Engineering technicians, based on a criterion-based selection process, are afforded the opportunity to gain 12-months of work-integrated exposure as part of their study requirements. Applications are accessible electronically or manually during 1 Jan – 31 July annually. Interviews are conducted during 1 Aug -15 Dec and 2 May – 1 Jul annually. Once the Diploma has been achieved successfully, a Technician-in-Training Programme (TIT) is offered to those Engineering Technicians who take up employment with Transnet.

Graduates-in-Training (Young Professional in Training)

Graduate-in-Training Programme (YPT) offers young graduates the opportunity to gain work-place experience through a 24-month structured programme in different Transnet environments. Application opportunities are advertised in all the main newspapers as well as university liaison and is dependent on the completion of the various programmes within Transnet . Successful applications are dependent on a selection process.

Should you wish to obtain more information contact Hasheem Haupt on 031 361 6679 or

Wongama Sehlwana on 031 – 361 6634.

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Youth Development Opportunities Cont.

Techno Girl Scheme

Programme is run with the Department of the Minister for Women, Children and People with Disabilities. The purpose is to expose school girls (Grade 9-12) to technical fields of work during school holidays. Recruitment and selection is managed through a third party appointed by the Ministry.

Apprenticeship Scheme

The Apprenticeship Scheme focuses on affording learners with Grade 12 the opportunity to participate in vocational training in 14 trades, namely:

Toolmaking; Welder; Sheet Metal; Vehicle Builder; Turner and Machinist; Fitter; Blacksmith; Tool maker; Wagon Fitter; Electrician; Armature Winder; Refrigeration; Electro-Mechanician; Millwright; Diesel Electrical Fitter; Electrical Fitter.

The programme runs for 18-36 months divided into 3 phases. On completion of the respective trade curricula, the learners are afforded the opportunity to undergo a trade test under Section 28 of the Manpower Training Act to .

Full-Time Bursary Scheme

Grade 12 scholars may apply to Transnet for full-time bursaries through an on-line application procedure. The bursaries comprises full tuition and identified related costs with the opportunity of job placement on successful completion of studies which also serves as a pay-back period. Conditions prevail with non-compliance with bursary agreement.

The bursaries are offered based on criteria such as academic performance. Currently, bursaries are available within the Commercial (aligned with Transnet business requirements), Environmental and Engineering disciplines.

Should you wish to apply for a bursary, kindly visit the Transnet website at www.transnet.net and for Engineering Technician exposure contact Alison Visagie on 011 308 2117.

http://www.transnet.net/

Transnet’s SD approach is to leverage the MDS infrastructure programme to foster economic growth & promote transformation

• Achieving SD objectives through leveraging high-value procurement by including: Industrialisation Localisation Promoting technology

transfer Job creation and

preservation Developing industry-specific

skills Enterprise development Rural integration MDS will also provide an

opportunity to accelerate economic growth and transformation

• Ensuring transactions to bring HDI’s* into the economic mainstream through the advancement of HDI ownership

• Address economic disparities and entrenched social inequalities through the use of:

FRC (current, future)**

Generic B-BBEE scorecard • Ownership • Management Control • Employment equity • Preferential procurement • Enterprise development • Socio economic

development • Skills development

SD objectives

Driv

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mic

T

ran

sfo

rma

tion

(E

mp

ow

erm

en

t)

Fa

cil

ita

te e

co

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G

row

th

Transformation Growth

SD objectives

HDI = Historically Disadvantaged Individuals as per the B-BBEE Act 2003; ** FRC = Further Recognition Criteria (Source: Team analysis)

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Enterprise and Supplier Development in TPT

Third party ED grants for SMMEs:

Contribution made to EMC for the development of a Maritime Incubator to cater for youth businesses in the Maritime Sector

Supplier Readiness Programme:

38 businesses are benefiting from this programme where SABS facilitates the process of certifying SMMEs with ISO 9000

BBBEE Training - TPT Suppliers

29 suppliers were provided with training on the New BBBEE Codes

NEC Training on SMMEs

49 SMMEs were provided with NEC training in Durban and Richards Bay

Youth Membership Programme:

89 Youth businesses have been enrolled as members of the DCCI to give them access to network and gain from the Chamber’s programmes

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Enterprise and Supplier Development

Enterprise Development Initiatives

Comments Actual

Third party ED grants for SMMEs Contribution made to EMC for the development of a Maritime Incubator to cater for youth businesses in the Maritime Sector

R 2 000 000

Supplier Readiness Programme 38 businesses are benefiting from this programme where SABS facilitates the process of certifying SMMEs with ISO 9000

R 2 110 000

BBBEE Training - TPT Suppliers 29 suppliers were provided with training on the New BBBEE Codes

R 51 000

NEC Training on SMMEs 49 SMMEs were provided with NEC training in Durban and Richards Bay

R100 000

Youth Membership Programme - DCCI

89 Youth businesses have been enrolled as members of the Durban Chamber of business. This is to give youth these businesses access to network and gain from the Chamber’s programmes.

R 255 239

Microfinance Partnership with the anglo American Godisa Fund and SEFA ( small enterprise finance agency)

Supplier Imbizo’s Mentoring between established and new entrepreneurs ( TPT supplier imbizo’s fostering partnerships with OEM’s and SMME’s)

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TPT contributed R2m towards the Maritime incubator which will be managed by EMC for a year with an option to extend depending on the availability of funds to achieve the following objectives:

To create an enabling environment for Small Medium Enterprises (SME’s) to

access economic development interventions that are provided by the strategic

partners;

To guide and mentor SMEs to the extent that they grow their client bases,

improve their profitability and create additional jobs;

To transform TPT’s supplier base ensuring active economic participation

of SME’s; and

To develop and support new entrepreneurs through structured training

programmes.

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The incubator initiative shall initially apply to the KZN Region as it will be situated

at the Durban. Should the incubator initiative be successful the intention is to roll

it out to other regions within the Republic of South Africa.

The Enterprise development Contribution made by TPT to EMC is made with

the specific Objective of assisting or accelerating the development, sustainability

and ultimate financial and operational independence of selected incubates by

both parties.

To create an enabling environment for specific designated groups in the Maritime

industry

Black youth

Black Women

Other business development services - Shanduka umbrella incubation services

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Procurement opportunities

OpEx

CapEx

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Preferential Procurement Spend YTD

BEE Procurement

Spend from all Empowering

Suppliers R1 828 969 039

89,48%

Exempted Micro-Enterprises

R348 709 094 17,06%

BEE Procurement Spend from all

Empowering that are Qualifying Small

Enterprises R539 681 625

26,4%

All Empowering

Suppliers that are more than 30% black women

owned R473 570 142

23,17% Suppliers that are

100% Black Youth Owned

R36 176 759 1,77%

All Empowering

Suppliers which are at least 51% black

owned and more R1 064 149 833

52,06%

TMPS: R 2 043 931 806

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Procurement opportunities

• Equipment Repairs & Maintenance

• Stevedoring • Training • Security • Building Repairs &

Maintenance • Fuel • Catering • IT • Tyres • Office Cleaning • Waste Management • Clinic & Emergency Services • Driving Services • Printing

TPT Capital Equipment Acquisitions

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EQUIPMENT COUNTRY OF ORIGIN OEM

SHIP TO SHORE (STS)

CHINA ZPMC

IRELAND LIEBHERR

GERMANY NOEL

CONTAINER TERMINALS

PIER - 1 DCT DURBAN NCT PE CTCT


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RAIL MOUNTED GANTRY (RMG)

CHINA ZPMC

GERMANY KALMAR

GERMANY

TERREX

GERMANY MORRIS

RUBBER TYRED GANTRY(RTG)

GERMANY KALMAR

IRELAND LIEBHERR


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STRADDLE CARRIERS

GERMANY TERREX

FINLAND KALMAR

HAULERS

GERMANY MAFI

ITALY FERRARI

HOLLAND TERBERG

REACH STACKERS

GERMANY KALMAR

ITALY FERRARI

CHINA SANY

GERMANY SMV

Component Localisation Opportunities

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SHIP TO SHORE (STS)

ITEM

- STEEL STRUCTURE

- MOTORS

- ROPES

- GEARBOXES

- CONTROL AND AUTOMATION

RAIL MOUNTED GANTRY

- STEEL STRUCTURE

- MOTORS

- ROPES

- GEARBOXES



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STRADDLE CARRIERS

ITEM

- STEEL STRUCTURE

- MOTORS

- ROPES

- GEARBOXES


- ENGINE

- GENERATOR

- ALTERNATOR

- STARTERS

- BATTERIES

- TYRES


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RUBBER TYRED GANTRY (RTG)

ITEM

- STEEL STRUCTURE

- MOTORS

- ROPES

- GEARBOXES


- ENGINE

- GENERATOR

- ALTERNATOR

- STARTERS

- BATTERIES

- TYRES


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HAULERS

ITEM

- ENGINE

- ALTERNATOR

- STARTERS

- BATTERIES

- TYRES

- GEARBOXES

REACH STACKERS

- ENGINE

- ALTERNATOR

- STARTERS

- BATTERIES

- TYRES

- GEARBOXES

OPPORTUNITIES: OPEX

Commodity Opportunity

Category

Repairs & Maintenance: Air Conditioning: DBN Within 3 months

Supply of Gas & Welding Equipment: National Within 3 months

Supply of General Consumables: KZN Within 3 months

Provision of Public Relations Management Services: National Within 3 months

Repairs & Maintenance: Eqquipment: RB Within 3 months

Provision of Dedicated Staff Transporting: DBN Within 3 months

Provision of Dedicated Staff Transporting: RB Within 3 months

Repairs & Maintenance: Straddles: DBN Within 3 months

Supply of Corporate Uniform Clothing Within 3 months

Conveyor Splicing: RB Within 3 months

Provision of ISO Accreditation Audits: National Within 3 months

Repairs & Maintenance: Equipment: DBN Within 3 months

Provision of Rigging Services: RB Within 3 months

Provision of Personal Protective Wear Within 3 months

Supply of Tea & Refreshments: KZN Within 9 Months

Repairs & Maintenance: Forklift: DBN Within 9 Months

Provision of SAP Support Services: DBN Within 12 Months

Supply of Tea & Refreshments: KZN Within 12 Months

Repairs & Maintenance: Forklift: RB Within 12 Months

Supply of Conveyor spares: DBN Within 12 Months

Repairs & Maintenance: Engines: DBN Within 12 Months

OPPORTUNITIES: OPEX

Commodity Opportunity

Category

Provision of Office Cleaning: RB Within 12 Months

Provision of Office & Workshop Cleaning: RB Within 12 Months

Supply & Maintenance of Office Plants: DBN Within 18 Months

Provision of Printing Services: DBN Within 16 Months

Provision of Driving and Handling Services: DBN Within 16 Months

Supply of Industrial Tyres: National Within 16 Months

Repairs & Mainteance: Elect-Liebherr Crane: DBN Within 16 Months

Provision of Security Services: National Within 20 months

Provision of Office & Workshop Cleaning: DBN Within 20 months

Provision of Material Handling Services: RB Within 20 months

Provision of Pest Control Services: RB Within 20 months

Provision of Occupational Health Managemetn Services Within 20 months

Supply of Automotive Filters: KZN Within 20 months

Provision of Sanitation Services: KZN Within 20 months

Provision of Dust Monitoring Services: RB Within 20 months

Monitoring of Effulent, Storm & Ground Water: RB Within 20 months

Provision of Sewrage Removal: DBN Within 20 months

Supply of Conveyor Belting: National Within 20 months

Document Output Control: National Within 33 Months

Provision of Fleet Management Services: National Within 33 Months

Supply of Fuel: National Within 33 Months

PAGE

Capex Pipeline FY 16/17 TPT (OWN) (NEW AND EXISTING)

Project NEW/ EXISTING Project duration (months)

Phase

Straddle Carrier Replacement (16/17) - 23 Straddles NEW

23 FEL 4 Camco Infrastructure replacement and upgrade New

24 FEL 2

Replacement of a front end loader

NEW

1 FEL 4 Critical Refurbishment Grain Elevator EXISTING

60 FEL 2 Replacement of 2 Vigans New

23 FEL 4 Midlife refit on RTG'S (18) NEW

24 FEL 1 Replacement Haulers (x14) EXISTING

16 FEL 4 Acquisition of 12 replacement trailers New

16 FEL 4 Mid life electrical Refurb - 6 x Liebher cranes New

17 FEL 1 Replacement of Forklifs ( X3) New

33 FEL 4 Acquistion of Bobcat New

16 FEL 4 Acquistion of Sweeper New

16 FEL 4

PAGE



Phase

Acquisition of 2 empty container handlers NEW

60 FEL 4 Acquisition of capital spares NEW

60 FEL 4 Refurbishment of the grain elevator EXISTING

5 FEL 3 Test weights for load testing NEW

4 FEL 3 Capital spares for STS cranes NEW

4 FEL 3 Bulldozer NEW

4 FEL 4 Access Control EXISTING

20 FEL 4 Acquisition of 4 RTG's Future

23 FEL 4 Upgrades for the STS crane management computers NEW

8 FEL 1 Modifications to RTG's to enable power back up NEW

8 FEL 1 Capital spares for equipment (with Carols) NEW

8 FEL 4 Service truck – Hiab crane NEW

8 FEL 4

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Phase

Work shop forklift NEW

8 FEL 4 Midlife Refit - RTGs x 28 Future

48 FEL 1 STS Crane height adjustment to LC 3, LC 4, LC 7 and LC 8 NEW

11 FEL 2 Parking facilities for staff NEW

11 FEL 2 Park home facilities at the ingate x 3, outgate x 2 , quayside

x1, 501 area x1

NEW

11 FEL 2 Sweeper Truck NEW

11 FEL 2 Replacement of Central Air con at the admin building NEW

11 FEL 2 Spreader anti sway NEW

11 FEL 2 Rail line replacement NEW

11 FEL 2 Increased diesel storage NEW

11 FEL 2 FORKLIFT 18 TON X 1 and 13 ton x1 at CTMPT New

1 FEL 4 FORKLIFT 30 TON X1 Future

1 FEL 4

PAGE



Phase

Midlife Refurb of the Liebherr 400 NEW

12 FEL 1 Haulers and Trailers (x2) at SAL MPT 2015/16 NEW

1 FEL 4 Haulers and Trailers (x2) at SAL MPT 2016/17 Future

11 FEL 4 MPT Expansion - Quayside New

FEL 3 MPT Expansion - Landside New

FEL 3 Capacity increase to 9mtpa New

FEL 3 Metal detectors x 2 units EXISTING

16 FEL 4 Belt washing systems NEW

30 FEL 3 Conveyor belt replacements at SAL IOT 2016/2017 New

11 FEL 4 Equipment Refit - FEL 3 (Tippler, SR, SL) Future

22 FEL 1 Procure 2 x Bobcats New

11 FEL 4

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Phase

Removal of CV314 and replacing with transfer chutes New

11 FEL 2 Fencing of port boundary New

11 FEL 2 Environmental Projects to meet AEL requirements New

11 FEL 1 Machine Operator Escape System, Stacker Reclaimers and

Shiploaders

Future

11 FEL 1 Design, supply and installation of Automated counter weight

hoisting systems for conveyors.

NEW

11 FEL 2 Capital Spares - SAL NEW

FEL 4 Supply, Install and commission of water addition sprayers for

conveyor 210 and 110

NEW

FEL 2 Upgrade of water reticulation pipe system from uPVC to

HDPE or alternative

NEW

FEL 2 Electrical Refurbishment of Conveyor Belts moving heads EXISTING

36 FEL 4 Delkor plant refurbishment NEW

17 FEL 1 Replacement of Stacker Future

23 FEL 1

PAGE



Phase

K24 Tunnel Dust Extraction EXISTING

11 FEL 2 Dust Suppression - Phase 2 Future

11 FEL 1 Commtrac Implementation - RCB EXISTING

207 FEL 2 Caillard unloaders upgrade New

FEL 2 Hopper 1 and 2 midlife refurb New

FEL 2 Liebherr 500 midlife refurb New

FEL 2 Belt Scales upgrade New

FEL 2 4 x Skid Steer Loader and 8 x Sweeper attachments NEW

4 FEL 3 Trailer refurbishment - 98 trailers @R200 000 each NEW

23 FEL 1 Capital Spares for the RTG's and RMG's New

11 FEL 1 Upgrade of the substations New

72 FEL 4 GCOS Upgrade EXISTING

63 FEL 4 Navis EXISTING

94 FEL 4

PAGE

Capex Pipeline FY 16/17 TCP (NEW AND EXISTING)

Project NEW / EXISTING

Project duration (months)

Phase

Road Repairs EXISTING

60 FEL 3 North Quay Upgrade New

84 FEL 3 DCT Stack Rehabilitation- North Quay New

57 FEL 2 Automation of Pier2 Truck Staging Area EXISTING

35 FEL 2 Resurfacing of MHA Workshops EXISTING

56 FEL 3 Canteen Facility for Point EXISTING

27 FEL 3

Replacement of Asbestos Roof in buildings NEW

23 FEL 1

Resurfacing and strenghthening of Sheds

NEW

94 FEL 1

100 ton weighbridge NEW 12

FEL 1 Quay Side Rail replacement EXISTING

32 FEL 3 Refurbishment of the PE Manganese Plant - Safety Critical

Tipplers x2

EXISTING

31 FEL 2 Refurbishment of the PE Manganese Plant - SR, SL and

conveyors

New

31 FEL 1

PAGE




Phase

Resurfacing quayside & stacking areas Bulk (H) EXISTING

72 FEL 2 Upgrading of Sheds New

30 FEL 4 Additional mini-substation at MPT NEW

1 FEL 1 Weighbridges NEW

1 FEL 2 Warehouse refurbishment NEW

23 FEL 2 Car wash/water spray facilities EXISTING

40 FEL 2 Fire deluge systems for all conveyors EXISTING

54 FEL 3 New Tippler EXISTING

60 FEL 2 Upgrade of security lighting at SAL IOT EXISTING

48 FEL 2 Fire systems for all substations EXISTING

48 FEL 3 Storm and environmental systems NEW

60 FEL 2 Modifications to CV 120 NEW

20 FEL 2

PAGE




Phase

Structural Modifications to CV 113 and CV 213 NEW

20 FEL 2 Upgrade to the festoon system at tippler 1 and tippler 2 NEW

20 FEL 2 Increase the Mittal stockpile storage and reclaim capacity NEW

20 FEL 2 Critical Capex - GP 1 & 2 Rail Beam Refurbishment EXISTING

60 FEL 3 Critical Capex - S05 & S08 - Hopper Design Change x 8 EXISTING

60 FEL 3 Other sustaining capex - Upgrading of Fire Systems Phase 3 EXISTING

60 FEL 3 Other Replacements - Replace plough reclaimers in Bins NEW

37 FEL 4 3rd Tippler at RBY DBT EXISTING

52 FEL 2 C01 Conveyor System EXISTING

23 FEL 3 Emergency Lighting - Admin and Sheds NEW

23 FEL 4 MHA workshop refurbishment NEW

36 FEL 3 Ngqura Manganese NEW

FEL 3

Documents

Opportunities at the Ports Transnet Port Terminals on