1. TRANSNET PORT TERMINALS - STAYING AHEAD OF THE COMPETITION
ZEPH NDLOVU – GM: KZN OPERATIONS
1 JULY 2014
We are Transnet Port Terminals on social media

2. PAGE
WORLD ECONOMIC SITUATION
TABLE OF CONTENTS
1
REGIONAL ECONOMIC GROWTH
PROSPECTS
SA PORTS AND REGIONAL INTEGRATION
PORT DEVELOPMENT
FUTURE PLANS

3. PAGE
WORLD ECONOMIC SITUATION AND
SEABORNE TRADE TRENDS
• >90% of world
merchandise trade is
carried by sea
• Industrial production
world GDP, merchandise
trade and seaborne
shipments continue to
move in tandem.
• With demand for shipping
services being “derived”,
the performance of
maritime transportation
and seaborne trade is
largely determined by
developments in the
world economy and
international trade.
• Developing countries are
playing a bigger role
globally as well as
regionally, with deeper
South–South linkages and
trade integration.
The OECD industrial production index and indices for world GDP,
merchandise trade and seaborne shipments (1975–2013), (1990 =
100)
Source: UNCTAD secretariat
2

4. PAGE
GLOBAL TRADE DRIVES CONTAINERISATION
• > over 50% of the world
merchandise trade
volume is containerised.
• Asia handles more than
60% of the global
container trade (had +/-
48% - 49% share in
1994).
• Container penetration in
developing nations such
as India, Africa, Latin
America is expected to
continue to grow.
• Container volumes
handled by Transnet Port
Terminals grew by an
average of 6% between
2004 and 2013 while the
South African GDP grew
by an average of 3.3%.
Global container trade, 1996–2013 (Millions of TEUs and
percentage annual change)
Source: Based on Drewry Shipping Consultants
3

5. PAGE
AFRICA POISED FOR ACCELERATED ECONOMIC GROWTH
• Africa has about 20%
of the world’s land
mass and 16% of its
population, but only
2.5% of its GDP.
• A key driver of
Africa’s growth has
been its richness in
natural resources.
• Africa’s population is
the other major driver
of growth.
• Population projected
to increase from 1bn
in 2010 to about
1.8bn in 2040.
• 8 African countries
among the world’s 20
fastest-growing
countries (World
Historical and forecast population in Africa
Source: United Nations (2011)
4

6. PAGE 5
Challenges facing African Ports
Monrovia
(Liberia)
Lome
(Togo)
Port Louis
(Mauritius)
Toamasina
(Madagasca
r)
Takorad
i
(Ghana)
Abidjan
(Côte
d'Ivoire)
Lagos
(Nigeri
a)
Cotonou
(Benin)
Walvis
Bay
(Namibia
)
Tema
(Ghana
)
Cape Town
(SA)
Dar es Salaam
(Tanzania)
Tanga
(Tanzania)
Mombasa
(Kenya)
Nacala
(Mozambiqu
e)Beira
(Mozambique)
Maputo
(Mozambique)
Richards Bay (SA)
Durban (SA)
East London (SA)
Ngqura (SA)
Libreville
(Gabon)
Pointe Noire
Matadi (Congo)
Douala
(Cameroon
)
Source: Team analysis
Port Elizabeth (SA)
Lobito
(Angola)
Luanda
(Angola)
Algiers
(Algeria)
Port Said
(Egypt)

7. PAGE
• South Africa is distant from its key trading partners
• Maritime transport costs is a significant component of total transport costs
• South Africa is strategically placed to service Southern African, Asian and South American
trade routes
• SA can establish itself as a global transhipment hub focused on certain trade routes
Intensity of global shipping
ECONOMIC SIGNIFICANCE OF OUR PORTS
6
Length of SA Coastline = 2 798km

8. PAGE
SOUTHERN HUB FOR WORLD SHIPPING
ROUTES
The position of South Africa’s ports system enables it to access to South-South trade, Far
East trade, Europe & USA, East & West Africa regional trade
7
Shortest Trade Route between Shanghai and Santos is via South Africa 11,270nm = 22 days @
21 knots
via Panama Canal13,130nm = 26 days + transit fee
via Suez Canal 13,590nm = 27 days + transit fee

9. PAGE
8
Notteboom, Theo E. "Shibboleth Authentication Request." Sciencedirect.com. ScienceDirect, May 2012. Web. 10 Mar. 2014.
University of Illinois: Illinois Business Consulting, March 2014
Over 368 million tonnes pass through the Suez Canal vs
6.46 million tonnes through Ngqura annually

10. PAGE
9
Notteboom, Theo E. "Shibboleth Authentication Request." Sciencedirect.com. ScienceDirect, May 2012. Web. 10 Mar. 2014.
University of Illinois: Illinois Business Consulting, March 2014
Criteria analyzed in the comparison between Cape and Suez
routes
Criteria
Analysis
Dimensions of Criteria Via Suez Route Via Cape Route
Distance
-Distance in nautical miles
E.g. Singapore to Buenos Aires
Less favorable at
12,292 nm
More favorable at
9,336 nm
Transit Time
-Sailing times
-Dwell time at interlining terminal
-Canal transit time
-Delays
E.g. Singapore to Buenos Aires
33 days 26 days
Cost
-Handling rates at interlining
terminal
-Ship operating costs
-Canal transit fees
-Port dues
Lower due to vessel
size provides
economy of scale
Higher
Other factors
-Piracy attack/Political turbulence Rising Few
-Capacity Full Under-utilized

11. PAGE
10
• High port fees and taxes can affect the economic
viability of stopping at a port
Port Fees & Taxes
• The amount of time it takes for cargo to clear customs
has an impact of time sensitive goods
Customs Efficiency
• If ports are highly congested, SSS is not viable
• Post-port logistics can impede traffic growth if
infrastructure issues persist
Capacity to Handle Traffic
• Ports with low berth depths or shorter wharf lengths
can impede the use of larger ships
Port Specifications
Factors which affect the economic viability of stopping at a
port
University of Illinois: Illinois Business Consulting, March 2014

12. PAGE
11
• Ports with no expansion plans in place to meet
future demand could create bottlenecks and
need to be critically evaluated
Expansion Plans
• Countries imposing special import tariffs to
correct trade imbalances could have potentially
drastic consequences for a new shipping line
Trade Imbalances
• Being a government-linked organization, pirate
attacks could snowball into larger issuesPirates
• Lines operating in countries undergoing political
changes could face dire consequences if caught
at the wrong time and the wrong place
Political Instability
"Port of Cotonou, Benin." Bollore Africa Logistics. Bollore Africa Logistics, n.d. Web. 11 Mar 2014.
United States. Federal Research Division. Country Profile: Kenya. Washington, DC: , 2007. Web.
University of Illinois: Illinois Business Consulting March 2014
Geo-economic factors affecting port viability

13. PAGE
THE ROLE OF TRANSNET IN PORT
DEVELOPMENT
1212
"Regional and continental infrastructure development
is of fundamental importance to the realisation of
Africa’s economic growth and development
imperatives. As regional leaders, we carry a particular
responsibility to serve as champions in driving
industrial and infrastructure development both at the
regional and continental levels.“
Jacob G Zuma, President of the Republic of South Africa and Chairman of the Committee of
Heads of State of the Programme for Infrastructure Development in Africa (PIDA)

14. PAGE
TRANSNET STATE OWNED COMPANY
LTD
- OPERATIONAL DIVISIONS
• 16 Cargo
Terminals
operating across
7 SA ports
• Revenue 7 bn
• Assets R12.3 bn
• 6 210 employees
Supporting
13
• 8 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
Engineerin
g(TE)
Transnet
Freight
Rail
(TFR)
Transnet
Port
Terminals
(TPT)
Transnet
National
Ports
Authority
(TNPA)
PipelinesRailPorts

15. PAGE
Africa Strategy
Ports
Rail
Pipelines
• PMAESA;
• Promote SA as a regional hub for Africa;
• Port pairing initiatives/Port co-operative
agreements;
• Regional port plan to support SA’s hub
port;
• Transnet to assist Regional ports to
develop their ports master plans,
dredging;
• Maritime School of Excellence for marine
training programmes
• Focus on increasing cross border volumes;
• Review our approach to rail concession
agreements;
• Maintenance services to the regional
market on Loco’s/wagons and port
equipment;
• Sale of wagons and Loco’s;
• Rail operations;
Regional
Integration
• Advisory services given our
technical competency
• Opportunities to operate
and/or construct pipelines
• Review our role in the
development of the North
- South corridor;
• Africa conference
(Port/Rail/Pipeline);
• MOU’s between African
countries ;
• Training/Skills
development;
Visible
presence
Contribution in developing other African ports
14

16. PAGE
OVERVIEW
15
• Transnet Port Terminals provides cargo
handling services at 16 terminal facilities in
seven ports to a wide range of customers
including shipping lines, freight forwarders
and cargo owners.
• Operations are in containers, bulk, break-
bulk and automotives.
• We invest in state-of-the-art cargo handling
equipment (ship-to-shore cranes, straddle
carriers, rubber-tyre gantries, tipplers,
conveyors) and manage the logistics
interface with inbound and outbound rail and
trucking carriers.
• We are proud of the implementation of the
NAVIS-terminal operating system and the
certification of all our terminals to ISO
standards.
• Transnet Port Terminals is Africa’s biggest
container terminal operator in terms of
volumes handled.
In line with Transnet’s new market
demand strategy (MDS) and related
investments, Transnet’s Port Terminals
are currently expanding in response to
growing business in the country.
Expansion includes creating storage
capacity, the replacement of old
equipment and upgrading of software.
TRANSNET PORT TERMINALS

17. PAGE
Transnet’s Integrated Network is Underpinned by a Limited Number of Key
Corridors
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, AutomotivesWESTERN CAPE PORTS
EASTERN CAPE PORTS
KZN PORTS
In 2012/13 TPT handled:
4.24 Million Containers
75.3 Million Tons of Bulk Cargo
9.9 Million Tons of Break-Bulk
674 Thousand New Automotives
TRANSNET PORT TERMINALS OPERATES
A COMPLIMENTARY PORT SYSTEM
16

18. PAGE 17
A ship in the harbour is safe,
but that's not what ships are built for.
William Shedd
17

19. PAGE
• Transnet’s Market Demand Strategy (MDS) will see R300bn spent over the next
seven years to create freight capacity before demand across rail and ports
infrastructure and equipment in South Africa.
• Of this amount, TPT is poised to spend R30bn and TNPA R47bn to boost port
operations and facilitate unconstrained growth. The MDS sets out how Transnet
intends to grow revenues and business from its operation over the next seven
years.
• Never before has any company invested so aggressively in creating capacity
ahead of demand on the African continent.
18
INFRASTRUCTURE DEVELOPMENT

20. PAGE
19
Source: Africa Team analysis
Market Demand Strategy
- 2013 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
• TPT will invest R30bn
Divisional split (Rbn)
11
30
47
4
201
4
Other
TPL
TPT
TNPA
TRE
TFR
Other
Commodity Split (Rbn)
30
26
39
24
25
32
151
OtherBulk
Break Bulk
Piped Products
Containers (Ports)
Export Iron Ore
Export Coal
GFB

21. PAGE
20
Source: Africa Team analysis
Market Demand Strategy
- MDS INVESTMENTS FOR TPT
Port View, Replacement Vs Expansion, Infra Vs Equipment
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%)

22. PAGE
TPT 10-YR CAPEX HISTORY (Rm)
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
21
7
2012/1
3
2011/1
2
2010/1
1
2008/0
9
2013/1
4
2017/1
8
2016/1
7
2015/1
6
2014/1
5
2018/1
9
3200 2337 913 1137 2551 1859 3492
7670
9545
2812 2670
2009/1
0
Boom-
time
Ends
Global recession
Market Demand Strategy
TPT R30bn 7yr Investment Plan

23. PAGE
IMPACT ON JOB CREATION
22
MDS is expected to create 15,000 direct and up to 588,000 indirect job opportunities across the
economy

24. PAGE
• 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.
23
CAPACITY AHEAD OF DEMAND

25. PAGE
Automotive Terminal
24

26. PAGE 25
THE AU HAS IDENTIFIED 14 CORRIDORS AS THE MAIN
AFRICAN CORRIDORS THAT NEEDS DEVELOPMENT
1 Kenitra-Casablanca Corridor
2 Greater Cairo Region
3 The Dakar-Touba corridor (Touba-Mbackѐ)
4 The Greater Ibadan-Lagos-Accra (GILA) urban corridor
5 The great Haoussa-Yoruba-Anshanti city triangle (GHAYA-CT)
6 The Emerging Luanda-N’Djamena corridor
7 The Kampala-Entebbe corridor
8 Nairobi metropolitan region
9 Walvis Bay corridor
10 North South corridor (Cape Town-Johannesburg-Harare-
Lusaka-Dar es Salaam)
11 The Maputo-Gauteng development corridor
12 Durban development corridor
13 Beira corridor
14 Maputo-Limpopo corridor
Source:E&Y Report – Time for Africa
3
4
2
13
10
12
11
14
9
6
5
7
8
6
6

27. PAGE 26
THE SA GOVERNMENT HAS DEVELOPED 18 STRATEGIC
INTEGRATED PROJECTS (SIPS)
Unlocking the northern mineral belt with Waterberg
as the catalyst
SIP5
SIP2
SIP3
SIP4
SIP1
SIP6
SIP7
SIP8
SIP9
Durban-Free State-Gauteng logistics and industrial
corridor
South-Eastern node & corridor development
Unlocking the economic opportunities in North
West Province
Saldanha-Northern Cape development corridor
Integrated municipal infrastructure project
Integrated urban space and public transport
programme
Green energy in support of the South African
economy
Electricity generation to support socioeconomic
development

28. PAGE 27
THE SA GOVERNMENT HAS DEVELOPED 18 STRATEGIC
INTEGRATED PROJECTS (SIPS)
Agri-logistics and rural Infrastructure
SIP1
5
SIP12
SIP1
3
SIP1
4
SIP1
1
SIP16
SIP17
SIP18
SIP10
Revitalisation of public hospitals and other health
facilities
National school build programme
Higher education infrastructure
Expanding access to communication technology
SKA & Meerkat
Regional integration for African cooperation and
development
Water and sanitation infrastructure
Electricity transmission and distribution for all

29. PAGE 28
10 NEW 18,000 TEU SHIPS ORDERED BY
MAERSK
- To be delivered over next 3 years
DBN EL PE CPT Ngqura
• Only Cape Town and Ngqura
can handle fully laden 4th
generation vessels
• Only Ngqura can handle 5th
generation vessels
• The average size of vessels
on order is currently 5,310
Draft 11.9m 10.2m 11.7m 13.8m 16.5m

30. PAGE
A New Port is required to handle these
latest Generation Vessels…
29

31. PAGE
Port of Durban
Container Terminals
New Dig-Out Port
Automotive Terminal
Liquid Bulk Terminal
Breakwater and Entrance Channel
30
PORT OF NGQURA
DURBAN MPT TERMINALS – POINT
RORO
FUTURE PLANS FOR DURBAN
- Artist’s View of the new Dig-Out Port at ex-DIA
Site

32. PAGE
DURBAN DIG OUT PORT
- SUMMARY
31
STATISTICS
• 800 hectares of land to be acquired
• 70 million m3 of material to be dredged
• 3,5 million tonnes of rock
• 2,5 million m3 of cement
• 52 000 tonnes of reinforcing steel
• 14,5 million m3 earthworks
VISION:
• Largest container port in Africa
• World-class port in terms of efficiency
• World-class supply chain
• Leading-edge “green” port
• “Community” port
• State-of-the-art security
EXPECTED BENEFITS
• Expected Capex Impact on GDP of
R48 billion
• Expected Operational Impact on
GDP of R56 billion (per annum at
full operation).
• Income/wages generation during
construction – KZN impact –
estimated at R24 billion
• Expected to create approximately
64 000 construction jobs
• Expected to create approximately
28 000 operational jobs
• Reduced total logistics cost

33. PAGE
CONCLUDING REMARKS
32
• 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.

34. 20 THANK YOU