TRANSNET PIPELINES PROFILE AND CAPABILITY STATEMENT

Pat Riley

“Excellence is the gradual

result of always striving

to do better.”

Introduction 01

Transnet Group 02

Transnet Group Financials 03

Transnet Pipelines 05

Brief History 05

Management Team 05

Operations 06

Legislation and Codes of Practice 07

Licences 07

Markets 08

Client List 08

Financials 08

Legal and Compliance 08

Enterprise Risk Management (ERM) 11

Safety Management 12

Environmental Management 13

Quality Commitment and Assurance 13

Capabilities and Services 15

Pipeline Operation 15

Refractionation of Intermixture 17

Technical and Maintenance 17

Training and Development 18

Pipeline Financial Management 19

Value Proposition 19

Transnet Pipelines is a major operator of multi-product hydrocarbon pipelines in South Africa and transports crude oil and reined

petroleum products and methane rich gas through a network of 3 800 kilometres of pipelines from South Africa’s ports and reineries

to its customers’ distribution depots throughout the industrial heartland of the country.

Transnet Pipelines is one of ive operating divisions within Transnet SOC Limited (the Transnet Group) which is wholly owned by the

Government of the Republic of South Africa. The Transnet Group owns, operates and maintains the country’s ports, railway network,

and pipeline network within South Africa.

Transnet Pipelines, together with the Ports and Rail Divisions provide an integrated freight and logistics service to enable and ensure

a seamless hydrocarbon product supply chain from South Africa’s ports and its customers’ reineries to its customers’ depots.

Our network of pipelines are of strategic importance to the national economy of South Africa and are critical in maintaining a reliable,

continuous and eficient supply of crude and reined products to industry.

The Transnet Group is a strategic economic partner to industry and is mandated by the Government of South Africa to enable

competitiveness, growth and development of the South African economy through the delivery of cost competitive and reliable

freight transport and handling services that meet and exceed its customers’ demand.

At the core of the Transnet Group vision is its customer focused Market Demand Strategy (MDS) which aims to provide its customers

with a reliable freight transport and handling service nationally through:

• Fully integrating and maximising the use of Transnet’s unique set of assets

• Continuously driving cost eficiency

• Demonstrating a concern for sustainability in its operations

The Transnet Group is well positioned in Africa to leverage off its domestic success story and has already made signiicant gains in

Africa through its growth and development strategy.

Our achievements to date include:

• Transnet National Ports Authority’s signing of ive inter-port co-operation agreements with Kenya, Mozambique, Namibia,

Ghana and South Sudan for Marine, Technical, Dredging and Training services

• Transnet Engineering’s provision of technical and maintenance services for locomotives, wagons and coaches regionally

• Transnet’s provision of internationally accredited training services through its School of Rail and the Maritime School of

Excellence, which are offered either at home or in the host country

IntroductionTransnet Pipelines offers its customers a world-class, fully integrated, cost-eficient multi-product hydrocarbon pipeline Supply Chain Management Service from source to destination. We ensure safety to all stakeholders and the environment, reliability and consistency of delivery of product placed in our custody, on time and to our customers’ speciications.

01

Transnet SOC Limited (the Transnet Group) is uniquely positioned as owner of South Africa’s Ports and Rail and Pipeline infrastructure

as the primary freight and logistics group in South Africa. The Group has a turnover of approximately R61 billion (2014/15 annual

audited inancial statements) and over 63 000 employees in its ive divisions and specialist units.

The Group’s corporate headquarters are located in Johannesburg, South Africa and its ive operating divisions are spread across

South Africa.

The ive operating divisions include:

• Transnet Freight Rail (TFR) – operates the freight rail networks throughout South Africa

• Transnet Engineering – manufactures and maintains railway rolling stock

• Transnet National Ports Authority (TNPA) – maintains and operates South Africa’s seven ports

• Transnet Port Terminals (TPT) – manages port and cargo terminal operations

• Transnet Pipelines (TPL) – operates the crude oil, reined products and gas pipeline network in South Africa

The specialist units are:

• Transnet Property – manages Transnet’s property portfolio comprising commercial and residential properties

• Transnet Capital Projects – responsible for executing large infrastructure projects on behalf of the operating divisions

• Transnet Foundation – implements Transnet’s corporate social investment projects

The Transnet Group is presently expanding its Africa operations and currently has satellite ofices in Lesotho, Namibia, Tanzania and

Swaziland and joint operating centres in Mozambique and Botswana. The Group has signed several regional cooperation agreements

(Memorandums of Understanding - MOUs) between Transnet Rail and regional railways including TransNamib and Botswana Railways;

between Transnet National Ports Authority and Benin; and between Transnet Pipelines and Botswana Oil Limited.

Central to Transnet’s growth strategy is regional economic integration between South Africa and the Southern African Development

Community (SADC) as a whole. The strategy aims to facilitate domestic, regional and global economic activity by leveraging and

expanding its regional infrastructure and services. Through Transnet Engineering’s world-class ISO 9001:2008 certiied rolling stock

manufacturing facilities and a workforce of 12 500 qualiied personnel, Transnet Engineering is expanding its rolling stock customer

portfolio to Africa and the world.

Transnet Engineering’s manufacturing plants have received ‘Centres of Excellence’ awards and are accredited by international

original equipment manufacturers (OEMs).

To support its rail operations, Transnet also owns and operates more than 100 wagon and locomotive maintenance depots for in-

service maintenance of rolling stock throughout South Africa.

Transnet Group

TransnetPipelines

TransnetFreight Rail

TransnetEngineering

TransnetNational Ports

Authority

TransnetPort Terminals

PIPELINESPORTSRAIL

TransnetFoundations

Transnet Capital Projects

TransnetProperty

SPECIALIST UNITS

TRANSNET COMPANY

OPERATING DIVISIONS

02

03

Transnet SOC Limited is the operating entity for the group and its divisions and produces a single integrated set of

Financial Statements. As a public entity, the Group Financial Statements are available to the public and may be viewed at

www.transnet.net

The Transnet Group is wholly owned by the Government of the Republic of South Africa and is required to operate strictly on

commercial principles with executive accountability for performance targets, assets and liabilities, funding, cash low management

and operating proits and losses and to exercise strict inancial control in accordance with the Public Financial Management Act,

Act 1 of 1999 and amendments thereto. The Group is also obliged to raise its own capital funding requirements through commercial

inancial institutions without guarantees from Government.

The Group has exhibited a strong and steady growth over the past 5 years, which is indicative of the Group’s performance.

Transnet Group Financials

The key inancials and ratios for the Group’s annual inancial performance for the 2014/15 inancial year are summarised below:

Performance Summary

Revenue R 61,2 Billion

EBITDA R 25,6 Billion

Cash generated from Operations R 30,6 Billion

Capital Investment R 33,6 Billion

Gearing 40 %

Interest Cover 3.6 times

2011 2012 2013 2014 2015

REVENUE (R Million)

37

95

2

45

90

0

50

19

4 56

60

6

61

15

2

12,7%

2011 2012 2013 2014 2015

EBITDA (R Million)

15

76

3

18

88

2

21

05

1 23

63

9

25

58

8

12,9%

2011 2012 2013 2014 2015

CAPITAL INVESTMENT (R Million)

21

50

4

22

25

9

27

47

1 31

76

6

33

56

5

11,8%

04

The company fulils a strategic role in the supply chain of petroleum products in South Africa ensuring supply of product on demand

from its Oil Industry Customers in the industrial heartland.

Over the years, Transnet has continuously expanded and reconigured the pipeline network to keep abreast of capacity demands. In

2012, the company commissioned its most recent investment in a 24-inch diameter new Multi-Products Pipeline (NMPP) to meet the

long-term economic growth capacity demand for the inland industrial market area of Gauteng.

Transnet PipelinesBrief History

Transnet Pipelines was established in 1965 and has 50 years of experience in the management, operation and maintenance of petroleum pipelines.

05

Management Team

Transnet Pipelines employs a highly skilled and experienced team of commercial and technical professionals across all disciplines of

the organisation. The nature of our business in the petroleum pipeline environment in South Africa demands a unique set of skills and

capabilities in engineering, operations and maintenance of pipelines.

Chief Executive

Chief Operating Oficer

GM Strategy & Commercial

Chief Technical Oficer

GM Legal & Compliance

Chief Financial Oficer

GM Human Resources

REFINED PRODUCTS

CRUDE OIL

GAS

AVTUR

NMPP PIPELINE

NMPP TERMINALS

JAMESON

PARK

Transnet Pipelines owns, operates, manages and maintains a network of some 3 800 kilometres of crude oil, reined product and

gas pipelines and associated pump stations, storage tank farms and a central and remote control centre infrastructure across ive

provinces in South Africa.

The pipeline network is managed through a Master Control Centre which operates on a 24 hour 7 day a week basis located at its head

ofice in Durban.

The company owns and operates a 30 million litre tank farm with road and rail loading facilities in Tarlton to facilitate cross border

deliveries via road and rail to Botswana. The company also owns and operates a refractionator plant in Tarlton which is unique for a

pipeline operator.

The company transports approximately 17 billion litres of product per annum and the product slate includes:

• Crude Oil

• Diesel 50ppm and 500ppm

• Unleaded Petrol – 93 Octane

• Unleaded Petrol – 95 Octane

• Jet Fuel

Operations

The main pipelines and associated infrastructure:

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DETAILS CRUDE OIL DJP MPP AVTUR GAS INLAND NETWORK TOTAL

Location Dbn to Dbn to Dbn to Avtur Inland of Total Coalbrook Alrode JMP JMP sections

Pipe size 16”/18” 12” 24” 6” 18”/16” Various (8” – 20”) 3 800km

Product:

Crude •

Diesel 50ppm • •

Diesel 500ppm • •

ULP 93 • • •

ULP 95 • • •

Avtur • • •

Methane Gas •

Stations:

Intake Station 1 2 1 1 1 2 8

Pump Station 6 9 4 3 1 3 26

Booster Stations 5 0 0 0 0 0 5

Delivery Stations 1 5 0 1 0 6 13

Switching Stations 0 1 1 0 0 3 5

Terminals 0 0 2 0 0 1 3

Line Fill 78 000m3 63 508m3 153 000m3 1 844m3 82 536m3 152 350m3 531 238m3

Owned and Managed Pipelines and Facilities:

Transnet Pipelines’ pipelines and the associated infrastructure are designed, constructed and maintained in accordance with

International Standards and Codes of Practice including ASME, ASTM, API, ISO, etc. and comply with all South African licencing,

legislation, regulations and codes of practice.

Transnet Pipelines is a compliant and approved licensed pipeline operator by the National Energy Regulator of South Africa (NERSA)

and its transportation tariffs are regulated and set by NERSA.

Transnet Pipelines has a well trained workforce of 632 employees with competencies in the management, operation and maintenance

of pipelines.

Transnet Pipelines operates under the following licences issued by NERSA (The National Energy Regulator of South Africa):

• Licence for the Operation of a Petroleum Pipeline System

• Licence for the Operation of a Gas Transmission Pipeline

• Licence for the Operation of a Storage and Handling Facility

• Licence for the Construction of the NMPP (New Multi-Product Pipeline)

Legislation and Codes of Practice

Licences

08

Transnet Pipelines does not publish individual Financial Statements being part of the Transnet Group, which publishes an integrated

Group Report.

Transnet Pipelines division’s contribution to the Group performance for 2015 is summarised in the below table.

Financials

Performance Summary 2014/2015

Revenue R 3,246 Billion

EBITDA R 2,304 Billion

Capital Investment R 2,79 Billion

Transnet Pipelines is contracted to all the major multinationals and a number of South African independent petroleum distributors

for the pipeline transportation of crude and reined products.

Our major clients include:

• Shell

• BP

• Chevron

• Engen

• Total SA

• Sasol Oil

• Sasol Gas

• PetroSA

• Afric Oil

• Vuyo Petroleum

Client List

Transnet Pipelines places great emphasis on legislative and regulatory compliance. To this effect it has competencies and processes

in place to ensure compliance and mitigation of identiied risks, speciically in areas of administrative law, property, safety, health,

environment, labour and competition law. It also has resources to audit for statutory compliance.

A key and fundamental consideration for Transnet’s international aspirations and entry into new countries is its ability to comply

with sovereign laws and regulations. Due diligence will be undertaken in other countries to identify and assess potential risks, the

mitigations of risks, the costs of compliance and the impact of Transnet’s competitiveness.

Transnet has an established formal Compliance Function and Compliance Policy, which is reviewed biannually and/or updated as and

when necessary. The Compliance Policy forms the foundation of the Company’s Compliance Framework.

Legal and Compliance

Markets

Transnet’s focus is to provide an integrated pipeline-rail transportation service offering to its customers to maximise product

throughput volumes while minimising logistical costs. The integrated service to customers improves the overall pipeline and rail

eficiency providing a distinctive competitive value proposition for the fuel supply chain from source to destination.

Transnet Pipelines currently transports:

• More than 65% of all reined product required for the South African inland market

• More than 70% of all jet fuel required at OR Tambo International airport

• 100% of the crude requirements for the Natref reinery

• 100% of the gas requirements to KwaZulu-Natal for the Sasol Gas clients

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10

We currently supply more than 65% of all

refined product required for the South African

inland market

11

Enterprise Risk Management is a Group priority and receives attention at the highest level of the Transnet Board.

The Group follows a systematic bottom-up approach to Enterprise Risk Management consolidating the operating division assessed

risks at a Group Level. The Transnet Group Board Risk Committee reviews the adequacy and effectiveness of the Group’s risk

management mitigation plan. The Risk Committee considers the Enterprise Risk Management (ERM) Framework and ensures that

market risk, operational risk, environmental, health and safety risks amongst others are formally reviewed regularly.

The key issues that affect Transnet’s ability to create value in the short, medium and long term are grouped into three categories:

• Operational risks or opportunities which are managed daily through implementing policies and process controls

• Strategic risks or opportunities which could signiicantly affect Transnet’s ability to implement its strategy, but that can be

mitigated if they are understood and proactively addressed

• Systemic or global risks or opportunities which affect nations and companies globally; some of which could be mitigated by

localised efforts or through collective or multilateral actions

Transnet’s strategic risk proile is generated from the Transnet ERM Strategy Framework which is based on ISO 31000:2009. The

process is based on a Consequence–Likelihood Rating Matrix. The risk management and accountability is allocated to champions

across the group on a “risk lies where risk is” basis.

At an Operating Division level, Transnet Pipelines’ strategic risk proile is generated and updated regularly for identiied and emerging

risks. The process of risk and opportunity, identiication, assessment and mitigation is a participative team approach with inputs

from all functional groups. The output from risk assessments along with risk mitigation plans are registered in risk registers and

stored in the risk information management system. Risks are allocated to speciic risk owners for monitoring, review and mitigation

management. The results of the risk assessment reviews are reported to Operating Divisions or Specialist Unit’s Risk Management

Committees and to the Transnet Risk Management Committee.

Key Risk Indicators are developed for all signiicant and strategic risks. The potential exposure is determined in Rand value for all

signiicant risks.

Enterprise Risk Management (ERM)

Discussion and analysis of

identiied risks at sub-risk

committee of respective

TPL EXCO member

Risks rated residually lower

than Priority 3 reported on and

monitored at TPL EXCO member

sub-risk committee

Identiication of risks

at operational and

departmental level

Risks rated residually

as Priority 1 and 2

Transnet Pipelines Risk

Committee

Transnet Group Risk

Management Committee

Board Risk

Committee

Risk review structure:

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The nature of Transnet’s business means we operate across inherently high risk environments that

have the potential to negatively impact on our employees, contractors, business partners, customers

and the general public. While Transnet has a legal responsibility to ensure the health and safety of its

employees and those affected by its business operations, Transnet considers safety a core value and

a business imperative, and therefore will not settle for basic compliance. We strive to maintain the

highest safety standards and a zero harm environment.

Transnet’s safety management is guided by our SHEQ Management Policy which applies to all employees

(permanent and non-permanent), stakeholders and contractors in Transnet. This policy outlines our

philosophy that safety is everyone’s responsibility and deines the strategic intent and principles

that provide a framework for action. Group Risk Management is responsible for the development,

facilitation of implementation, maintenance and review of the policy.

Key management approaches include:

• Entrenching a culture of Safety which is undertaken through the Golden Safety League programme

and the Transnet Culture Charter

• Engaging with our Stakeholders to understand their safety concerns, and develop solutions based

on best practice. Stakeholders include the Rail Safety Regulator, the Department of Labour,

organised labour, employees and the shareholder

The backbone of our Health and Safety System is formulated on our systematic approach which

comprises:

• Development and Implementation of Policies, Standards, Procedures and Guidelines

• Internal and External Safety Audits on Policies, Standards, Procedures and Guidelines

• Independent Boards of Enquiry investigations into Incidents

• Health and Safety Committees that monitor Health & Safety risks associated with operational

activities

• Training in functional irst aid, SHE Representation, incident management and risk management

areas

• Operational Risk Assessment

• Forums to ensure safety compliance such as daily task and job assessments, permitting, toolbox

meetings, SHE Forums, etc.

Transnet Pipelines is compliant with the Transnet Group Health and Safety policies and requirements

and is a NOSA certiied company with a 5 Star rating. Its Health and Safety Management System is

based on the guidelines set out by NOSA.

Transnet Pipelines has an enviable DIFR (Disabling Injury Frequency Rate per total man hours worked)

track record. The statistics are summarised below:

2010 2011 2012 2013 2014 2015

DIFR 0.54 3.33 0.21 0.81 0.39 0.39

Each Operating Division operates in a unique environment and hence safety challenges and

appropriate responses differ accordingly. The Operating Divisions’ Chief Executive Oficers are

responsible and accountable for their SHEQ performance, however ultimate accountability for

safety performance lies with the Group Chief Executive.

Safety Management

I will not perform unsafe work and put myself and

others in danger

I take responsibility for myself and my team and I

don’t blame others

If I don’t understand and if I have a problem, I speak up

and say so

I know the standard operating procedures and safety rules, follow them and don’t take shortcuts

I always prepare, check and report unsafe acts and

conditions

I rest well and work safely

No matter what my level, I contribute to safety

Transnet Pipelines is fully committed to provide a quality service to its customers and has formalised the framework for its Quality

Management System in its Quality Policy and Objectives.

Transnet Pipelines Quality Management System (QMS) applies to all products and service activities offered by Transnet Pipelines.

Our documented Quality Management System conforms to the requirements of ISO 9001:2008 and the process of implementing

certiication is currently in progress.

Transnet Pipelines’ Quality Manual outlines the company’s policy commitment to quality management and the QMS procedures

describe the implementation and operation of the Quality Management System, to ensure that the quality objectives are met.

Transnet Pipelines’ Quality Management System is based on an extensive reference base including the following documents,

standards, codes, speciications, legislation and regulations:

• ISO 9000:2005 (Quality Management System – Fundamentals and Vocabulary)

• ISO 9001:2008 (Quality Management System – Requirements)

• ISO 14001:2004 (Environmental Management System – Requirements with Guidance for Use)

• ISO 17025:2005 (General Requirements for the Competence of Testing and Calibration Laboratories)

• ISO 19011:2011 (Guidelines for Auditing Management Systems)

• SANS Speciications:

- SANS 342:2014 (Automotive Fuels - Requirements and Test Methods for Diesel)

- SANS 1598:2006 (Automotive Fuels – Requirements and Test Methods for Petrol)

- SANS 29001:2012 (Petroleum, Petrochemical and Natural Gas Industries – Sector speciic quality management system –

Requirements for product and service supply organisations)

• Petroleum Pipelines Act (Act No 60 of 2003)

• Petroleum Products Act (Act No 120 of 1977)

• Gas Act (Act No 48 of 2001)

• National Energy Regulator Act (Act No 40 of 2004)

• Occupational Health and Safety Act (Act 85 of 1993)

Quality Commitment and Assurance

Transnet Pipelines is certiied in terms of the internationally recognised environmental management system, ISO 14001 and abides

by relevant industry standards and protocols related to inspection and maintenance of pipelines and associated infrastructure,

storage facilities and bunded areas, to prevent damage to the environment due to spill and leakage incidents.

Transnet Pipelines employs a systematic and organised approach to identifying environmental risks and impacts associated with its

activities, as well as the necessary mitigation measures required to reduce or eliminate risks and manages these in accordance with

its documented environmental management system.

Transnet Pipelines aims at a continual improvement process in its operations to ensure the protection of natural resources in the

environment it operates in.

Environmental Management

13

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Operations Transnet Pipelines’ network operations are managed, monitored and controlled from a central control station located in Durban via a

Supervisory Control and Data Acquisition System (SCADA).

The control room schedules and tracks product slugs and monitors and controls heads, pressures and product interfaces from

despatch to delivery.

Transnet Pipelines’ operations are responsible for the following:

• Pipeline operations

• Depot management

• Planning and scheduling of product consignments

• Pipeline transmission optimisation

• Refractionator operations

• Quality Management in accordance with ISO 9001:2008 guidelines

• Pipeline and depot troubleshooting

• Road and rail loading operations

• Pipeline Risk management

• Pipeline Security Management in line with National Key Point legislative requirements

Systems The Transnet Group uses the SAP software system for enterprise management and Transnet Pipelines employs an eficient and

streamlined SAP customised customer interface system for its “order to cash process”.

Our system utilises SAP TSW (Traders and Schedulers Workbench) and SAP for Oil and Gas which are customised customer interface

modules for ordering and scheduling pipeline capacity and for product distribution and stock level management, respectively.

The backbone of our system is an integrated web based customer portal enabling our customers to place and track their orders

for outbound movements and to manage their product distribution and stock levels. The portal is integrated via the SAP system

MII (Manufacturing Integration and Intelligence) module which provides a direct connection between central business operation

and the local metering stations and relays all data on orders, materials, equipment status, costs, and product quality affecting

“manufacturing” for outbound product loading in real-time via the SCADA system.

Capabilities and Services

Pipeline Operation

Transnet Pipelines, by the very nature of its business, has the skills, capabilities and experience to offer the full ambit of Pipeline Operation, Terminal Operation, Road and Rail Tanker Loading, Refractionation and Blending of Intermixtures, Technical and Maintenance Support as well as Staff Training and Development Services.

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17

Resources Transnet Pipelines employs a highly skilled and experienced pipeline engineering team consisting of mechanical, electrical, control

and instrumentation disciplines as well as specialists in the design and installation of ire systems, cathodic protection and stoppling

(hot tapping and plugging). Transnet Pipelines’ in-house project teams plan and execute all key expansion, upgrades and repair as

well as replacement projects to ensure infrastructure is maintained, sustainable and up to date with best practices and the latest

technology.

Transnet Pipelines plans, schedules and executes planned maintenance on pipelines, terminals and depots. Unplanned repairs and

maintenance are also managed and executed.

• Transnet Pipelines maintains the necessary in-house skills to undertake the ongoing maintenance activities to achieve this

including:

- Servitude management and surveillance

- Geographic Information Systems (GIS) and Right of Way (ROW) management

- Landowner/Local Authority liaison

- Wash-away identiication and repairs

- Cathodic protection surveys and maintenance

- Inspection and refurbishment including:

- Developing inspection standards and practices

- Analysis and categorisation of defects

- Repair of defects by various methods e.g. ClockSpring® reinforcement system and “stoppling” to effect repairs

• Mathematical real-time transient modelling leak detection which is integrated with the automation system

• Emergency Response Planning and joint planning with Local Disaster Management Authorities

• Facilities Asset Management

• Maintenance and calibration of Custody Transfer Metering Systems

• Maintenance of Motorised Block Valves

Transnet Pipelines operates a Reliability Centred Maintenance Model internally and has an eficient and reliable SAP System based

Maintenance Management System module with detailed maintenance schedules for equipment, related task lists and frequency of

maintenance activities.

Pipeline Integrity Management and DesignPipeline Integrity Management (PIM) is a vital element of operation and ongoing maintenance to ensure the reliability, continuity of

service and low assurance of the pipeline. PIM is a critical consideration at commencement of the design and engineering phase as

decisions taken on the design philosophy, pipe design and selection of materials and systems may have signiicant ramiications on

the maintenance and life of the pipeline.

During the design phase, Transnet Pipelines is able to advise and add value based on its wealth of experience to the project engineering

in the following areas:

• Cathodic Protection (CP)

- In corrosive environments with high soil electrical resistivity

- On pipeline coating standards and assessment of coating integrity

- On NACE speciication and certiication

- On location of and remote monitoring of impressed current rectiiers

• Standardisation of equipment and systems and latest technology considerations

• Pipeline Automation and Control Philosophy and Development of Automation Standards (Pipeline Control System)

Technical and Maintenance

Transnet Pipelines operates a refractionator distillation plant located at our Tarlton facility for reprocessing intermixtures between

different product batches. The refractionator separates the intermixture into customer speciied reined products. The plant is

capable of reprocessing 6 million litres of intermixture per week. Transnet Pipelines is responsible for optimisation of the plant

process, blend rate optimisation and statutory maintenance at the plant.

The plant is a simple boil off distillation column with associated infrastructure comprising ired heaters, heat exchangers and coolers.

Transnet Pipelines also offers the refractionation process as a service to other local oil companies to assist them with reprocessing

their off-speciication products.

Refractionation of Intermixture

Transnet Pipelines has its own training facility, the “School of Pipelines” that feeds and ensures that the organisation has the right

skills and knowledge to operate and maintain its pipeline network and associated infrastructure.

The school also offers pipeline and terminal related training to external personnel.

The following accredited Operations courses are offered by the

School:

• Pipeline industry & equipment

• Product Quality Control

• Volume Control (Metering and Tank Gauging)

• Launching and receiving pigs and spheres

• Planning, handling & monitoring transmixture/ intermixtures

• Pipeline Operations (Prepare for Start-up; Start-up;

Shutdown)

• Operations for Non-operations Staff

• Operations for Technical Staff

• SCADA Training (PCS7)

• Hydraulic Simulator Training

• Co-ordinating Oficer Programme (Control room - pipeline

operators)

• Refractionator processing plant qualiications

The school offers a Depot Managers Course consisting of the

following:

• Overview of Fuel Depot Operations

• Strategic and Business Planning Processes

• Project Development Principles and Techniques

• Quality Management Systems

• Environmental, Health and Safety Management Processes

• Risk Management Processes

• Fuel Products Technology

• Performance Management Processes

• Leadership and Culture Change

The school offers the following non-operational training:

• Computer Training

• Technical Induction

• Bonding

• Low Voltage Switching “E Yellow”

• Environmental awareness training

• SAP Plant Maintenance

• High Voltage Switching “A Brown”

• Insulating Flange

• Piping Systems

• Basic Servitude and Wrapping

• Cathodic Protection for Electricians

• Cathodic Protection for Field Technicians

• Valve and Gearbox Maintenance

• Pipe Locator Operations

• Holiday Detector Operation

• Rectiier Maintenance

• Minor Maintenance

• Mainline Pump and Motor Maintenance

• Stoppling (hot tapping, diversion and plugging) Emergency

Repairs

• Mainline Pump Refurbishment

• Distribution Transformer Maintenance

Training and Development

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Our services include:

• Development of Regulatory Financial Statements

• Financial and strategic tariff modelling and analysis of

economic impacts on tariffs

• Financial process engineering

• International Financial Reporting Standards (IFRS)

compliance

• Design and implementation of SAP inancial models

• Financial and tax reporting

• Compilation of operational and capital budgets

• Budgetary control and monitoring

• Development of investment policies

• Payroll management

• Development of internal control frameworks

• Conducting forensic investigations

• Fraud risk management

• Business continuity management

• Capital, operational and tactical procurement

• Tender and New Engineering Contract (NEC) contract

management

• Stores management

• Supplier and Enterprise Development

• Procurement process engineering

Transnet Pipelines offers a Pipeline Financial Management Service to customers. The service aims at performance enhancement

by leveraging the potential of our customers’ business through delivering inancial, regulatory and procurement management

excellence. Our service includes inancial modelling, inancial planning, inancial reporting, procurement and internal controls

services to enhance inancial and operational performance.

Pipeline Financial Management

19

Transnet Pipelines is committed to offering its clients and potential clients a full suite of world-class, best-practice services for hydrocarbon pipelines. We invite you to interact with Transnet Pipelines and tap into an experienced and knowledgeable multidisciplinary team for your needs in the hydrocarbon pipeline industry.

Value Proposition

Established in 1965

Legal Entity is Transnet SOC Limited

Head Ofice in Durban, South Africa

Postal Address: P O Box 3113, Durban, South Africa, 4000

Phone Number: +27 31 361 1456

Safety: NOSA, 5 Star

Environment: ISO 14001 accredited

www.transnetpipelines.net