Port of Port Elizabeth“Investing in the Future”

EC Construction Summit26 March 2015

Disclaimer

2

 The content of this presentation is for general information purposes only and should not be construed as creating an expectation of any nature whatsoever regarding the way forward relative to the issues under consideration. Rights are fully reserved not to proceed in respect of the issues under consideration and to alter views expressed. The basis upon which to proceed relative to the subject matter of this presentation, or not to proceed as the case may be, will be developed outside the ambit of this presentation and for this specific purpose the content of this presentation should not be relied upon. Please be guided accordingly.

Contents

Port Overview

Port Strategy

Port Development Framework Plan

CAPEX Program

Market Demand Strategy & Concluding Thoughts

1

2

3

4

3

5

Port of Port ElizabethPort Overview

Port of Port ElizabethOverview

5

Port of Port ElizabethPort Strategy

Port of Port ElizabethPort Strategy

Port Strategic Focus Areas

• Transformation in all its facets• New Business Development• Stakeholder Engagement• Port Authority Oversight Role• Strategic Forward Planning• Provision of Port Infrastructure• Human Capital Management in all

its facets

Driven by a 3 tier strategy

In support of meeting Shareholder’s objectives of improving operating efficiencies, regional integration and optimising

investment in the port system.

Operations Strategy

• Port Performance Management• Optimal Use of Port Assets• Integrated Port Management Systems• Safety & Risk Management

Strategic Intent

Driving Economic Growth and Long Term Sustainability of the Port through optimal use of strategic port infrastructure

Marketing Strategy

A Premier Automotive Port. An Automotive Transshipment Hub for Sub Saharan Africa

Value Proposition

A geographically well position, customer centric, multi cargo port that prides itself on flexibility and service excellence. Your gateway to opportunities

“A Landlord Port Authority that manages, controls and administers the South African Port System on behalf of the

State”

InfrastructureCreate & Manage

Infrastructure capacity ahead

of demand

OperationsImproving port

efficiency through

increased productivity

and operations oversight

Integrated Port System

To facilitate and integrated

logistics chain that will

establish the port system as an integrated gateway for

trade

7

Port of Port ElizabethMarket Demand Strategy

Target volumes and customer satisfaction

• Gauteng OEM• Automotive

Transshipments• Manganese Skips /

Skip-tainers• MPT Diversification• Marina & Maritime

Commercial Development

• Port Logistic Park• Value Added Maritime

Services• EOI Berth 10/11/12• Ship Repair

HR strategy

Organisation strategy / readiness

• Ensure availability of required skills sets to develop internal capability and capacity in order to address competency gaps;• Retention of skilled workforce to deliver on prioritized areas and continue to strengthen the development initiatives for core, critical and scarce skills

as anchors and growth-enablers.

• Optimal resourcing, Success Planning, Talent Management, T & D, Mentoring / Coaching, EAP

Operational effectiveness and productivity

• OPS Centre• Port Productivity

• TOPS• MOPS• RODS• HOPS

• IPMS• Ops Planning, Monitoring,

C.I.• Logistic Partner

Engagement

Capital Planning and Execution

• Increase capacity and capability to deliver on the Port of Port Elizabeth R 3.8 Bn 10 Year Capex plan: Acquisition of two replacement tugs Road / Rail Infrastructure Upgrade Car Terminal at Southern Part of Port Replacement of Lead-In Jetties Slipway 40 ton Slipway Refurbishment Deepening Container Berths and Basin Acquisition of Pilot Boat Acquisition of Land outside TNPA Boundary Leisure and Marina Development Fire Supply Services

•Research & Development Deepening of Container Berths & Basin Leisure and Marina Development

Safety

Financial Sustainability

Regulator and Key Stakeholder Engagement

• Implement Tariff Methodology andPricing Strategy.

• Cost Optimization• Revenue

Completeness• NBD

• VFL / PSL• Safety Competition

8

Port of Port ElizabethPort Development Framework Plan

Port of Port ElizabethPort Development Framework Plan

Current Layout Short Term Layout

Medium Term Layout (2042) Long Term Layout

10

Port of Port Elizabeth5 Year CAPEX Program

Port of Port Elizabeth5 Year CAPEX Forecast

2014/15 2015/16 2016/17 2017/18 2018/19 -

100

200

300

400

500

600

700

800

213

293

208

546

671

CA

PE

X (

Rm

)

12

Port of Port ElizabethCurrent and Short to Medium Term Plans

Current Layout Short-Term Layout

11

2 2

3 3

4 4

2012

2019

3 Berths (16m)Container Terminal

Theoretical Capacity: 900 000

TEU’s(2019)

4 Berths (10-11m) MPT Terminal

Passenger Terminal

2 Berths (12.2m) Car TerminalTheoretical

Capacity: 400 000 Units (2023)

Leisure & Recreational Marina Development

2 Berths (12,2m)Container Terminal

Theoretical Capacity: 600 000 TEU’s

1 Berth (11m) Car Terminal

Theoretical Capacity: 200 000 Units

1 BerthLiquid Bulk

1.5m KL CapacityExit to Port of Ngqura in

2018/19

2 BerthsManganese

6m Ton CapacityExit to Port of Ngqura in

2018/19

Upgrade of Lead In Jetties and 40 Ton Slipway (2014/15)

Acquisition of 2 x 70T Bollard Pull Tugs

Deepening of PECT Berths 102 & 103

(Pockets) to 13.2m(Aug 2013 – Investigation completed, concluded to

pursue 16m)

Acquisition of Pilot Boat (2020/21)

Road / Rail and Surface Upgrade on Quay 2/3

(2014/15)

Consolidation of Ownership of Transnet Land

immediately bordering the Port 2014/15

Decommissioning & Rehabilitation of Land

(2017 – 2021)

Port of Port ElizabethMarket Demand Strategy & Concluding Thoughts

MDS will enable growth in key commodities and will position Port of Port Elizabeth as

… the leading automotive hub

… Container terminal servicing SEAC

… a ”People Port” focusing on leisure and recreational activities

… a multi commodity MPT Terminal

… a marine engineering hub focusing on boat building and repairs

Concluding Thoughts

16

Leverage the competitive advantage of Twin Ports

Trade FacilitationNew Business Opportunities

Economic Growth

Job Creation

Poverty Alleviation

Competitive Supplier Development

Skills Development

Thank You