B2N Cape Town 15 August 2016

Table of Contents: s56/Concession Regulatory & Shareholder Mandate – s11, S56/Concessions Background, Bid Process, Qualification & Evaluation Criteria (Key transformation drive), 10 yrs New Business Development Opportunities, Q & A

Optimally serve the economy Regulatory & Shareholder Mandate – s11 Landlord Promote the use, improvement and development of ports, and control land use within the ports, having the power to lease port land under conditions it determines. Optimally serve the economy Controller of ports services & facilities Ensure that port facilities are provided, and may enter into agreements or license other parties to provide these. Marketer & administrator Ensure that adequate, affordable, equitable and efficient facilities are provided for port users. Ensure non-discriminatory, fair, transparent access to port services and facilities; advancement of previously disadvantaged people; promotion of representivity and participation in terminal operations. Change agent Coordinator with other state agencies Advise on land use matters relating to the port sector, and liaise with all stakeholders.

Categories of Ports’ Tenants/Services within the Port Limits:

s56/Concessions Background: Invitation of Private Sector Participation in the: Planning, Design, Financing, Construction, Operation and Maintenance of new Cargo Handling Facilities within the SA Port System, Necessitated by: Market Demand, Commodity Needs & Trends, Industry Growth aligned with Infrastructure and Capacity Planning (short, medium, long-term), Government’s National Interests Initiatives, i.e. Phakisa, Security of Supply, etc. Expiring TOA’s,

Bid Process: Time bound Completeness & compliance Technical BBBEE Feasibility study Request for Qualifications Technical BBBEE Completeness & compliance Financial Proposals Negotiations with preferred bidder Bid evaluation Pre-qualified bidders only Interested parties invited, but open process Consultation on RFP Time bound Expression of Interest

Evaluation Criteria (Phase 1):

Evaluation Criteria (Phase 2):

10 Yrs New Business Development Opportunities: Liquid Bulk (Durban-Lot 100; SLD LPG Terminal, Cape Town LB, Ngqura); Passenger Terminals : Durban & Cape Town; Phakisa Oil & Gas Projects: Saldanha (OSSB, Rig Repair & Floating Facility) Richards Bay (Rig Repair) East London (Slipway) General Cargo: Ngqura; Sheds 10 & 11: Port Elizabeth  

SLD Sunrise Energy Terminal - Artist impressions

CPT Burgan Cape Terminal - Artist impressions

CPT Cruise Terminal – Artist impressions

DBN Cruise Terminal – Artist impressions

Island View Precincts – Approach & Principles: Security of supply of key commodities Promoting optimal use of port land and maximise existing footprint Normalizing Rentals Consolidate, create bigger terminals, secure longer term investment in infrastructure; Elements of transformation to be addressed;

Transformation Plan Principles: Plan is to grow black ownership from 25% to 51%, Credentials verification will be conducted on all and new entrants, Transformation will cater for the following SA HDI’s: Black People, Black Women, Black Youth & Military Veterans Black Ownership to reflect the demographics of the country with particular emphasis on Africans (Blacks, Indians and Coloureds), There will no selling of shareholder ship for the duration of the lease unless offered to another black owned new entrant and not to oil majors.

Oil majors will be managed through the following: Managing Oil Majors: Oil majors will be managed through the following: TNPA will take over berth allocation in line with the berthing policy, TNPA will monitor the utilization of the installed capacity including tanks, Flow meters will be installed to check whether the capacity is being used, Access to loading arms will be enforced in line with the NERSA and TNPA prescriptions,