eastern cape maritime summit oct 2016

Eastern Cape Maritime Summit

28 October 2016

Results Announcement 2016


Terminals in the Eastern Cape

EL PE NCT

Draft 10.2m 11.7m 16m


East London Multi Purpose Terminal - Overview

• The Port of East London is located on the eastern seaboard of South Africa.

• The Port of East London is situated at the mouth of the Buffalo River.

• The only commercial river port on the South African coast line.

• Centrally located both nationally and internationally, the port is strategically positioned to act as the gateway between Africa and the global market.

• Geographical position gives its customers easy access to world markets.

• The number of vessel calls per year in FY16 was 189 vessels (in FY15, 177 vessels)

Commodities Handled Containers Automotive Break/Bulk Agri Bulk


Port Elizabeth Terminals - Overview

• Geographically well-positioned, customer-centric, multi-cargo port that prides itself on flexibility and service excellence.

• It is the gateway for expanding markets.

• Being a congestion free port allows it to maintain high cargo handling rates, fast and efficient ship turnaround and unparalleled service levels.


Commodities Handled Containers Automotive Break/Bulk Bulk


Ngqura Container Terminal - Overview

• The latest development in the South African stables of ports is the Port of Ngqura.

• Deep-water port located on the east coast of South Africa.

• The Port of Ngqura is a world class deep water transhipment hub.

• Offering an integrated, efficient and competitive port service for containers on transit to global markets and within the Sub-Saharan Africa region.


Commodities Handled Containers


Complimentary Systems - TPT


Port System interaction & inter-dependencies• Most vessels calling SA carry cargo destined to more than one

province.

• Most of these vessels call at multiple ports.

• Customers prefer contracting on guaranteed expected departure time within our network of ports.

• Reliance on road and rail connectivity is of paramount importance.

• Performance of these 2 landside transport modes affect the overall port performance.

• The master plan for the development of South African ports sees a complementary system being developed that links ports to various rail corridors.


Benefits to be derived

• NCT impact - Part of complimentary port system (niche market).

• Job creation.

• Increased socio economic activity.

• Support SA as a link between SSA and BRICS countries.

• Commitment to job creation, skills , enterprise & supplier development, etc.

• Historical evidence of lowering cost of doing business.


Current initiatives

• Transhipment link between Port Elizabeth and East London.

• Rail shuttle service between the Port of Port Elizabeth and the NgquraContainer Terminal.

• Regionalised Support Services including procurement, Finance, Fleet Management, Information Systems, Risk Management.

• Flexible labour resourcing models being adopted in an effort to develop staff and reduce the cost of doing business.

• Flexible equipment resourcing with the transfer of equipment where it is needed.


Key Successes

• East London has achieved the highest monthly Automotive throughput of 13 000 units in September 2016.

• Port Elizabeth prides itself on the skiptainer innovation and the growth in this market.

• World class Manganese facility is being developed.

• Ngqura Container terminal has world infrastructure and increased capacity.


Major Regional CAPEX to support the strategy

NGQURA CONTAINER TERMINAL EXPANDED

- R1bn in equipment, civil infrastructure and buildings

- Additional permanent jobs were created (totalling 764 jobs)

PORT ELIZABETH MANGANESE PROJECT

- Investment of R27.7bn for Ngqura Manganese Export Terminal

- Support emerging miners & support excess market demand

- Investment of R428M for PE Plant refurbishment

EL PSP GRAIN ELEVATOR PROJECT

- RFI came back positive re PSP process

- Both Downscaling & PSP are in the procurement phase


• ±13,000 total ship calls at SA ports p.a.

• Potential 2500-5500 ships p.a. for ship repair

• Global demand for dry docks to increase at 13% p.a. from 2015 onwards

• ±33% of bulk carriers, tankers and container ships are dry-docked p.a.

Through Operation Phakisa, government aims to implement priority programmes better, faster and more effectively the ship repair market was identified as a key industry contributing to job

creation, transformation, skills development and infrastructure investment

SHIP REPAIR MARKET SIZE

Port Nolloth

Saldanha Bay

Cape Town

Mossel BayPort Elizabeth

Ngqura

East London

• The capital investment over the short tomedium term will improve the safety,reliability and efficiency relating to the shiprepair facilities

STRATEGY PILLARS

Ship repair facilities are located

at 8 of the 9 commercial ports

as on or more of the following:

• Slipways

• Synchrolifts

• Dry docks

• Floating docks

Operation Phakisa: GDP contribution, job creation in Marine Transport and Manufacturing (MTM) Sector

Durban

Richards

Bay


Infrastructure and operations Skills and capacity building Market growth

▪ Create supportive funding and revenue model

▪ Establish purpose-built oil and gas port infrastructure by appointing Facility Operators – Saldanha Bay

▪ Align on Implementation of government policy

▪ Prioritise Transnet and TNPA funding

allocation towards marine manufacturing

▪ Maintain and refurbish existing facilities

▪ Unlock investment in new and existing port facilities

▪ Implement Strategic Prioritised Project – Richards Bay

▪ Implement Strategic Prioritised Projects – East London

▪ Train 2,550 TVET College graduates on an 18-month Workplace-based Experiential Learner Programme in

scarce and critical trades over the 5 year period

▪ Create dedicated Occupational Teams for MTM Sector (professional, trades, operators and seafarers)

▪ Establish trade RPL, CBMT or Centres of Specialisation in Saldanha Bay and Richards Bay

▪ Train 18,172 learners as artisans, semi-skilled workers and professionals over the next 5 years

▪ Increase usage of ESSA system and targeted career awareness services as a high value recruitment tool for MTM

▪ Increase capacity to develop skills for ~1,200 ratings and ~720 officers per year

▪ Create and implement a public procurement and localisation programme

▪ Develop a strategic marketing campaign and value proposition for target markets

▪ Propose inclusion of preferential procurement clause in the African Maritime Charter

▪ Support local registry of vessels through incentives and legislation of using SA-flagged ships for cargo and coastal operations (based on United Nations Conference on Trade and Development and African Maritime Charter guidelines)

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A B C

i. TNPA – Transnet National Ports Authority

ii.ESSA – Employment Services of South Africaiii.TVET – Technical and Vocational Education and Training

iv. RPL – Recognition of Prior Learning

v. CBMT – Competency-based Modular Training

These initiatives require capital investmentover the next 5 years and will provide supplier development opportunities to maintain and refurbishexisting facilities.

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7 8

Initiatives for Marine Transport and Manufacturing


Port of East London – Phakisa Projects

• Unlocking boat building in East London with a focus on potential niche markets of tug boats and navy vessels;

• The upgrade and refurbishment of the existing drydock infrastructure is being undertaken at the moment;

• Opportunity to refurbish the existing slipway facility;

• Investment and incentive combination to the boat or ship building industry, linked to developmental commitments (e.g. investment, job creation, skills development, supplier development);

• Sites identified : Dry Dock, Slipway;

Required resources• Investment: R 515m (estimated)


• The East London Grain Elevator Terminal (ELGE Terminal) is the largest grain elevator inSouth Africa (it is serviced by two berths, with drafts of 10.0m and 10.1m). It is locatedon the West Bank of the Port of East London, South Africa’s only river port situated atthe mouth of the Buffalo River in the Eastern Cape Province.

• The Port of East London has good road and rail connections with the hinterland (FreeState and Gauteng), particularly with markets to the west of Kroonstad and it istherefore ideally located for:

capturing maize exports originating in areas to the West of Kroonstad

capturing the wheat volumes of the Eastern Cape wheat importers

acting as an overflow terminal for the Port of Durban during peak months and

acting as a back-up agri-facility providing the country with sufficient capacity toensure food security, if required.

• The ELGE facility serves an important strategic objective in key areas such as foodsecurity and transformation.

Grain Elevator


Grain Elevator: PSP

• This plan identifies key projects whereTransnet can partner with the privatesector to leverage key competenciesand competitive advantages to thebenefit of all stakeholders.

• Transnet’s Private Sector Participation(PSP) Plan, identified within theTransnet seven year Corporate Plan.


Request for Quotation : Opportunities in EC

Provision of Cleaning Services Provision of Garden Services

Supply and delivery of Lubricants

Provision of Waste Management services(National)

Supply and delivery of Protective Clothing and Safety wear (National)

Provision o staff transportation services

Belt Splicing and Lagging Services

Provision of Canteen Services

Supply of bearing and plumber blocks

Provision of Corporate Uniform Clothing (National)

Supply of conveyor belt idler

Effluent & water monitoring

Underground water monitoring

Maintenance ContractProvision of Waste Management services( National)

Crane Rigging services

Repairs & maintenance of Hydraulic Cylinders

Warehouse Management Services

Industrial Cleaning

Supply and Delivery of Speed bags samples

Supply & Delivery of Electrical Spares

Cleaning of offices & Ablutions Services

Supply and Delivery of Consumables

Air Quality monitoring

Supply and Delivery of General Hardware

Supply and Delivery Welding Spares

Provision of Supply and Delivery of PPE

Supply and delivery of Bulk Water

Supply and delivery of Hydraulics Pipes

Supply and Delivery of Injectors and Water Pumps

Supply and delivery of Tyres

Repairs & maintenance of air Conditioners

Repair of Alternators and staters for Kalmar Straddle Carriers

Supply and delivery Automotive Batteries

Provision of Canteen Services


• Construction – Civil work and Building

• Engineering – New equipment

• Engineering – Installation and upgrades

• Operations/maintenance – Equipment,

Labour, Outsourced services,

Trucks with driverMaintenance

• General – Transportation, Training and Development,Catering, Clothing,CleaningSHEQPaintingCommunicationGeneral consumablesRefreshments

• Competitive Supplier Development Programme, Localisation and supplier development

• Installation of new cranes, Upgrade and refurbishment of building, Plumbing, Stacking area repairs and painting

• Supply of electrical and mechanical spares, Supply of steel and rigging services

• Casual, fixed contract and permanent labour,

• Stevedoring, Security, Repairs and Maintenance

• Transportation of agricultural products

• Staff transportation (home to work)•

• Provision of functional training

• Canteen and catering services

• Uniform Clothing and Protective Clothing

• Cleaning of office, mess and ablution facility

• Gardening and housekeeping services

Area and Service Required Opportunity

BUSINESS OPPORTUNITIES IN THE EASTERN CAPE: NMET


Access to Procurement Opportunities

Transnet tenders are normally advertised in the following publications:

National Treasury eTenderPublication Portal atwww.etenders.gov.za

In accordance with National Treasury Instructions No: 1 of 2015/2016 Transnet mustadvertise and publish all its bids on the eTender Publication Portal, this with effectform the 1st May 2015.

For those who do not have access to internet, bid documents can still be obtained at arelevant Transnet office where the bid is advertised

OD Websites (some ODs display their tenders- moving towards a singleTransnet tender website).

CIDB website –for engineering & construction tenders. Tender notice boards at Transnet offices.

http://www.etenders.gov.za/


Transnet has opened a HUB in Mdantsane97 Dunga StreetMdantsaneEastern Cape011 774 1965076 730 4813

All RFQ’s from R250k to R2m are also advertised on the TPT website for easy access and to expand the opportunities to everyone

Transnet is working closely with the local Chambers to create awareness of business opportunities

Access to Procurement Opportunities


Contact Details for Procurement Enquiries

Xolani Ngcivana: Regional Commodity Manager (EC)Cell: 083 452 2138

Saarah Popo: Regional Procurement Manager ECCell: 083 287 4222

Olwethu Mtshixa: Acting Sourcing Specialist (EL)072 697 2743

Mbulelo Mfecane: Commercial Specialist078 190 4820

Thank You

eastern cape maritime summit oct 2016

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