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

2PAGE Transnet Organisational Structure km of railway track 182 million tons of freight General freight and 2 heavy haul export lines Revenue R22.2 bn Assets R54.7bn employees Support to TFR for rolling stock maintenance Revenue R9.8bn Assets R6.8bn employees 8 Commercial ports – Ngqura became operational during October 2009 Revenue R8.4bn Assets R56bn employees 16 Cargo terminal operations across SA ports Revenue R6bn Assets R13.5bn 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

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 km 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) 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

4PAGE MAJOR INVESTMENTS

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

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

7PAGE Prototype Port Layout DIA site long term potential

8PAGE Development Phasing and Costing(DIA) Item No: Project DescriptionDatesCapacityProject Cost (R millions) 20 Year Planning Horizon 1Airport West – Phase m TEU5,231 2Airport West - Phase m TEU5,231 3Airport West - Phase m TEU3,103 4Airport: Liquid-bulk – Phase m tons138 5Airport: Liquid-bulk – Phase m tons138 6Road and Rail ,087 SUB TOTAL14,928 Typical Port Investment – ( )

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

10PAGE MAJOR INFRASTRUCTURE

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

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

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

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

15PAGE PORT CAPACITY

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

17PAGE Port Capacity (Continued) PORT OF DURBAN Theoretical capacity Bulk Liquid (excl. SBM) SBM - Bulk Liquid Motor vehicles units Break Bulk Containers reflected in TEU's (DCT + Pier 1 + Salisbury Island) Dry Bulk (excl. Coal) Dry Bulk (Coal & Manganese)

18PAGE Port Capacity ( Continued) PORT OF EAST LONDON Theoretical capacity East Bank (Containers in TEUs) Dry Bulk Breakbulk (handled in the same terminal as Containers) Bulk Liquid

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

20PAGE Port Capacity ( Continued) PORT OF PORT ELIZABETH Theoretical capacity Containers (TEUs) Bulk Breakbulk Cars (units)

21PAGE Port Capacity ( Continued) PORT OF MOSSELBAY Theoretical capacity SPM and CBM - Bulk Liquid Bulk - Break Bulk -

22PAGE Port Capacity (Continued) PORT OF CAPE TOWN Theoretical capacity Break Bulk Dry Bulk Bulk Liquid Containers TEUS

23PAGE Port Capacity (Continued) PORT OF SALDANHA Theoretical capacity Iron Ore Bulk Liquid Break Bulk

24PAGE Port Capacity TOTAL TNPA Theoretical capacity Containers (TEUs) Break Bulk Bulk Liquid (incl. SBM) SBM &SPM (Incl. in Bulk Liquid above) Total Dry Bulk - Coal Iron ore Manganese (incl Ngqura) Other bulk Automotive (cars- units)

25PAGE CHALLENGES FACING PRODUCTIVITY IN OUR PORTS

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

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

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

29PAGE THANK YOU