2. 1PAGE Outline of the presentation Transnet organisational structure Business overview of TNPA Major investment and infrastructure plan Major investment Infrastructure plan Port Capacity Total TNPA Challenges facing productivity in our ports People Process Technology Superstructures

3. 2PAGE Transnet Organisational Structure 2 20 500 km of railway track 182 million tons of freight General freight and 2 heavy haul export lines Revenue R22.2 bn Assets R54.7bn 24 177 employees Support to TFR for rolling stock maintenance Revenue R9.8bn Assets R6.8bn 13 020 employees 8 Commercial ports – Ngqura became operational during October 2009 Revenue R8.4bn Assets R56bn 3 558 employees 16 Cargo terminal operations across SA ports Revenue R6bn Assets R13.5bn 5 895 employees 18 billion litres of petroleum products and gas through 3000km pipelines, mainly to Gauteng Revenue R1.3bn Assets R20.1bn 600 employees Transnet Capital Projects Transnet Property Transnet Foundation

4. 3PAGE 3 3 The National Ports Authority is a landlord Port Authority that provides port infrastructure and maritime-related services at the South African ports. Key business parameters : R 9.2 bn Total Revenue R 59.1 bn Total assets 8 operational ports – coastline approx. 2 800km 97 berths (18 container,21 dry bulk, 37 break-bulk,16 liquid bulk, 5 automotive 58 maritime craft (30 tugs, 9 pilot boats, 7 workboats, 3 pilot helicopters, 5 dredgers, 4 survey boats) 3 566 employees countrywide Eight Operational Ports Mossel Bay Business overview Core Business: Infrastructure – Capacity planning, Development, Maintenance Marine Services – Pilotage, Tug and Berthing Services Dredging – Maintenance dredging and Hydro graphic surveys Lighthouse Services – Provision of Aids to Navigation Ports – key commodities: Durban – Containers, Autos and Liquid bulk Richards Bay – Coal Saldanha – Iron Ore Port Elizabeth – Containers and Autos Cape Town – Containers and Fruit East London – Autos Ngqura – Containers Mossel Bay – Liquid bulk Core Business & Key Commodities LighthousesInfrastructureMarine ServicesDredging Four Core Business Activities

5. 4PAGE MAJOR INVESTMENTS

6. 5PAGE Outline of the potential investments Durban International Airport Site Port of Ngqura

7. 6PAGE6 Current Site Old Durban International Airport (DIA) long term potential

8. 7PAGE Prototype Port Layout DIA site long term potential

9. 8PAGE Development Phasing and Costing(DIA) Item No: Project DescriptionDatesCapacityProject Cost (R millions) 20 Year Planning Horizon 1Airport West – Phase 12016-191.28 m TEU5,231 2Airport West - Phase 22018-211.28 m TEU5,231 3Airport West - Phase 32020-230.85 m TEU3,103 4Airport: Liquid-bulk – Phase 22016-2110.0 m tons138 5Airport: Liquid-bulk – Phase 32019-2410.0 m tons138 6Road and Rail2021-26-1,087 SUB TOTAL14,928 Typical Port Investment – (2017-2026)

10. 9PAGE PORT OF NGQURA Future developments Relocation of the Manganese terminal from the Port of Port Elizabeth (PE) to Ngqura by 2015: Construction of a Manganese ore berth Relocation of the Tank farm from the Port of PE to Ngqura by 2015 Construction of a Liquid Bulk berth

11. 10PAGE MAJOR INFRASTRUCTURE

12. 11PAGE Outline of the major infrastructure Port of Durban Entrance channel widening and deepening Port of Ngqura Dredging of the Channel Berth extensions Port of Cape Town Berth deepening

13. 12PAGE Durban Entrance Widening and Deepening during construction 2008 Total investment R3.0 Bn Channel Depth from: 12.8m to 16.m The width increased from 130m to 220m During Construction After Construction

14. 13PAGE NGQURA 2011 Current Operations Two container Berths Two MPT Berths By end of May 2012 Move from two to four container berths Current Layout Immediate Future

15. 14PAGE CAPE TOWN Current Operations Four container Berths 12.8 m draft Two MPT Berths 11.2m draft By end of November 2012 Move to four container berths 14.2m draft Current Layout Immediate Future

16. 15PAGE PORT CAPACITY

17. 16PAGE Port Capacity PORT OF RICHARDS BAY Theoretical capacity Bulk Liquid (incl LNG in 21/22) 1 100 000 Automotive - Containers - Coal (berth 301 to 306) 91 000 000 Break Bulk (berth 606/7/8 & 706/7/8) 5 280 000 Dry Bulk (berth 609, 701 to 705, 801 & 804) 20 000 000

18. 17PAGE Port Capacity (Continued) PORT OF DURBAN Theoretical capacity Bulk Liquid (excl. SBM) 6 400 000 SBM - Bulk Liquid 25 000 000 Motor vehicles units 480 000 Break Bulk 9 750 000 Containers reflected in TEU's (DCT + Pier 1 + Salisbury Island) 2 800 000 Dry Bulk (excl. Coal) 6 500 000 Dry Bulk (Coal & Manganese) 3 500 000

19. 18PAGE Port Capacity ( Continued) PORT OF EAST LONDON Theoretical capacity East Bank (Containers in TEUs) 93 000 Dry Bulk 4 000 000 Breakbulk (handled in the same terminal as Containers) 250 000 Bulk Liquid 2 400 000

20. 19PAGE Port Capacity (Continued) PORT OF NGQURA Theoretical capacity Containers (TEUs) 800 000 Bulk ( incl. manganese in 21/22) 2 300 000 Bulk Liquid - Breakbulk 957 000

21. 20PAGE Port Capacity ( Continued) PORT OF PORT ELIZABETH Theoretical capacity Containers (TEUs) 500 000 Bulk 3 500 000 Breakbulk 1 574 000 Cars (units) 120 000

22. 21PAGE Port Capacity ( Continued) PORT OF MOSSELBAY Theoretical capacity SPM and CBM - Bulk Liquid 7 971 600 Bulk - Break Bulk -

23. 22PAGE Port Capacity (Continued) PORT OF CAPE TOWN Theoretical capacity Break Bulk 4 200 000 Dry Bulk 1 400 000 Bulk Liquid 3 400 000 Containers TEUS 700 000

24. 23PAGE Port Capacity (Continued) PORT OF SALDANHA Theoretical capacity Iron Ore 58 000 000 Bulk Liquid 25 000 000 Break Bulk 3 300 000

25. 24PAGE Port Capacity TOTAL TNPA Theoretical capacity Containers (TEUs) 4 893 000 Break Bulk 25 311 000 Bulk Liquid (incl. SBM) 71 271 600 SBM &SPM (Incl. in Bulk Liquid above) 32 971 600 Total Dry Bulk - Coal 92 750 000 - Iron ore 58 000 000 - Manganese (incl Ngqura) 7 550 000 - Other bulk 31 900 000 Automotive (cars- units) 655 000

26. 25PAGE CHALLENGES FACING PRODUCTIVITY IN OUR PORTS

27. 26PAGE Outline of the challenges facing productivity in our ports People Shortage of critical skills Aging workforce Processes Manual processes Lack of uniform productivity measures Superstructure Aging tug fleet Aging cranes

28. 27PAGE External Challenges Economic regulation Introduction of the National Ports Act of 2005 brought new challenges to the Authority, i.e. tariff determinations Increase in legal matters Revenue uncertainty

29. 28PAGE Maritime Port Security Challenges Recognized Maritime/Port Security Threats Lack of a collaborative maritime security strategy Piracy Maritime Terrorism Contraband Smuggling/Trafficking Incidence of Stowaways Insufficient coastal protection capacity Lack of ‘deep water’ patrol capacity Incidence of Trespassing Illegal exploitation of natural resources, e.g. poaching abalone, fish Prohibited imports/exports Potential Marine pollution

30. 29PAGE THANK YOU