transnet and tpt overview 12 sept 2016
TRANSCRIPT
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Transnet Overview
12 September 2016
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Agenda
Introduction
• Transnet SOC Ltd
Transnet Port Terminals
• Containers, Bulk, Break-Bulk & Car Terminals
TPT Strategic Drivers
• Agile, Admired, United and Digital
Market Demand Strategy
• Progress & Looking Forward
TPT’s Growth Strategy
• Grow & Defend, Diversification
Global Expansion Strategy
• Terminal Operations for Africa
Transnet’s Value Proposition
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Ships are Getting Bigger
DBN EL PE CPT Ngqura
Draft 12.2m 10.2m 11.7m 13.8m 16.5m
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If all the 20 Foot Equivalent Unit (TEU) sized Containers from the world's largest container ship, the Emma Maersk were to be put on a train, the train would be more than 70 km long.
Vessel Sizes
Generation Years
Produced Capacity
(TEUs) Length
(m)Draft (m)
1st Early Containership 1956-1970 <1000 137-200 9
Fully Cellular 1970-1980 1000-2499 200-225 10
2nd - Panamax 1980-1985 2500-3499 250-290 11-12
Panamax Max 1985-1987 3500-4499 275-294 12.5-13
3rd Post-Panamax 1988-1999 4500-5999 295-320 13-14
Post Panamax Plus 2000-2003 6000-6999 320-340 14-14.5
4th New Panamax 2003-2007 7000-12999 340-350 14.5-15.2
5th Post New Panamax 2006-2012 13000-15999 350-400 15.5
Tripple E 2013 + 18000 TEU’s 400-440 16
Source: Geography of Transport Systems
• Only Cape Town and Ngqura can handle fully laden 4th generation
vessels
• Only Ngqura can handle 5th generation vessels
• The average size of vessels on order is currently 5,310 TEU
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Port Land Capacity- China Today, Durban Tomorrow?
http://www.agility.com/EN/news/australasia/Pages/ISSUE-16-2015-Port-congestion-in-TCIT,-Ho-Chi-Minh-City.aspx#.VxTz1_l9670
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Container Ships Trade Routes- 40 Ships around the SA coast on 16 Feb ’16 (20 Calling)
Source: Dr Henriëtte van Niekerk, Clarksons Platou
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Dry-Bulk Ships Trade Routes- 173 Ships around the SA coast on 16 Feb ’16 (70 Calling)
Source: Dr Henriëtte van Niekerk, Clarksons Platou
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Principal trading partners – exports
China: 11.8%
USA: 8.3%
Japan: 6.0%
Germany: 5.7%
India: 4.2%
'welcome_to_the_anthropocene'_earth_animation_1280x720.mp4
SOUTH AFRICA- Southern Hub for World Shipping Routes
Source: http://www.searates.com/reference/portdistance/
The position of South Africa’s ports system enables it to access to South-South trade, Far East trade, Europe & USA, East & West Africa regional trade
Imports:• China: 14.4%• Germany: 10.1%• Saudi Arabia: 7.7%• USA: 7.4%• Japan: 4.6%• India: 4.5%
Exports:• China: 11.8%• USA: 8.3%• Japan: 6.0%• Germany: 5.7%• India: 4.2%
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Europe- SA’s second biggest Trading Partner
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Africa- Regional Integration
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SA IMPORTS FROM SADC
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2005 2007 2009 2011 2013 2015
R billion
Africa
Exports ImportsImports
Total Imports into Africa, originating from overseas countries grew from R53.4bn in 2006 to R166bn in 2015.Exports to other countries, originating in Africa grew from R31bn to R88bn during the same period.
Sub Saharan Africa’s GDP has grown at 3.3% from 2014 to 2015, but is anticipated to only grow by 1.6% during 2016.
SSA’s current account has decreased by -5.9% as percentage of GDP and consumer price inflation increased by 7% in 2015.
Exports
African Trade Situation
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Thank YouTransnet
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History
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History of Transnet
The first harbour master was appointed in 1839 so perhaps Durban as a port should be considered from this time.
In 1840 the first railway lines were constructed in the Cape Colony and then later also in Natal.
In the 1850’s the construction of a railway line was started linking the Cape and Natal harbours with the hinterland.
After the discovery of diamonds in Kimberley in 1867, a need for railway and harbour expansions became apparent.
Cape railway system becomes government property in 1872 and the Natal railway system in 1877.
Rumours of gold deposits in the Transvaal Republic are confirmed. Economic power is shifted from the colonial south to the republican north from 1880 onwards.
After the Union of South Africa was achieved in 1910, the South African Railway and Harbours (SAR&H) administration is established in 1916 through an act of parliament.
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History of Transnet
The opening of efficient mainliner passenger links in the 1930’s led to an impressive network of urban and metropolitan train services that make South Africa a mobile nation.
Durban Bay also served a different kind of purpose in the 1930s until late in the 1950s when it was used as a base for flying boats. Durban was the terminus of the first commercial air route between South Africa and Europe for Imperial Airways flying from Maydon Wharf.
In 1981 the country’s railway, harbour, road transport, aviation and pipeline operations become known as South African Transport Services (SATS) after government agreed that the SAR&H should restructure along business lines.
In 1990 SATS is given company status and renamed Transnet Limited (State Owned Enterprise) with Spoornet, Portnet and Petronet as divisions. Business units not focussed and the transport of freight (like SAA and Metrorail) is sold off.
In 2003, the Ports division was split into Port Operations and the Ports Authority of South Africa.
In 2007 Transnet becomes a listed Public Enterprise and Transnet Port Terminals as well as Transnet National Ports Authority were named.
In 2012 Transnet announce a 7-year infrastructure investment strategy known as the Market Demand Strategy, pledging to invest R300 bn by 2019.
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Port, Rail and Pipeline Operations Advanced
ManufacturingCapital
Investment
Transnet Group EXCO
Ms Makano Mosidi
Group Chief
Information Officer
Mr Mlamuli Buthelezi
Chief Operating Officer Mr Krishna ReddyChief Capital Officer
Mr Thamsanqa Jiyane
Chief AdvancedManufacturing Officer
Mr Gert de Beer
Chief Business Development Officer
Ms Disebo Moephuli
Group Chief Corporate
and Regulatory Officer
Ms Nonkululeko SishiGroup Chief HR Officer
Mr Garry PitaGroup CFO
Mr Siyabonga GamaGroup Chief Executive
Business Development
Mr Ravi Nair
CE TFRMr Karl Socikwa
CE TPT
Ms Sharla Chetty
CE TPTMr Richard Vallihu
CE TNPA
HRIT&SLegalFinance
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Transnet’s Business Model
Port, Rail and Pipeline Operations
Advanced Manufacturing
Capital Investment
Business Development
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Transnet Integrated Operating Model
6 Common Interest Terminals
7 Strategic Inland Terminals
4 Joint Ventures
29 Operator Licenses
RAIL TERMINALS
44 Rail Terminals
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Stakeholder Environment
Industry BodiesPartnering with groups or organisations that are affected by the activity of the port.
CustomersAlignment and collaboration on growth and expansion plans. Implementation of Performance Standards.
GovernanceAs a State Owned Company Transnet is part of the DPE and subjected to governance by NDOT
EmployeesTransnet is highly unionised with 93% of employees being members of labour unions
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7. SaldanhaBulk (Export iron ore),
Breakbulk
6. Cape TownContainers,
Breakbulk
4. NgquraContainers
3. East LondonContainers, Breakbulk, Agri-Bulk, Automotives
1. Richards BayBulk (Export Coal, Magnetite, Chrome) Breakbulk
2. DurbanContainers, Breakbulk, Agri-Bulk, Automotives
5. Port ElizabethContainers, Breakbulk, Bulk, Automotives
Transnet’s alignment to SIPs
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• Transnet Freight Rail is the largest division of Transnet. It is a world class heavy haul freight rail company that specializes in the transportation of freight.
• Transnet Freight Rail's core business lies in freight logistics solutions designed for customers in industry based business segments, mining, heavy and light manufacturing.
• Transnet Freight Rail has over 38 000 employees, who are spread throughout the country.
• The company maintains an extensive rail network across South Africa that connects with other rail networks in the sub-Saharan region, with its rail infrastructure representing about 80% of Africa's total.
• The company is proud of its reputation for technological leadership beyond Africa as well as with-in Africa, where it is active in some 17 countries.
Business Units• Agriculture & Bulk Liquids• Containers & Automotive Business• Coal• Iron Ore and Manganese• International Business• Mineral Mining and Chrome• Steel & Cement
Transnet Freight Rail
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Transnet Freight Rail Network & Terminals
Kimberley
Saldanha
Cape TownPort Elizabeth
East London
Durban
Richards Bay
Ermelo
Noupoort
De Aar
Ngqura
Bloemfontein
Phalaborwa
KroonstadUpington
Groenbult
Mahikeng
Botswana
Namibia
Zimbabwe
Mozambique
Lesotho
Swaziland
Sishen
Hotazel
Lohatla
City Deep
PretconRustenburg
Vaalcon
Kascon
Worcester
Polokwane
Operator License
Strategic
Eastcon
Deal PartyBelcon
Bayhead
Nelspruit
Grootvlei
Camden
Joint Ventures
Newcon
ArnotHendrina
Kendal
Potchefstroom
Pietermaritzburg
Cato Ridge
Back of Port Rail Terminals
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• Transnet pipelines is the custodian of the country’s strategic pipeline assets
• TPL is currently servicing two key industries (fuel and gas) by transporting petroleum and gas products over varying distances.
• Our business, having been established in 1965, is integral to the well-being of the South African economy.
• The business handles an annual average throughput of some 18 billion litres of liquid fuel and more than 450 million cubic metres of gases.
• The liquid products include crude oil as well as diesel, leaded and unleaded petrol and aviation turbine fuels.
Customers• Transnet pipelines' customers are all
South Africa's major fuel companies namely; BP, Caltex, Engen, Exel, Sasol Oil, Sasol Gas, Tepco, Shell and Total.
• Many of these organisations are empowerment companies, representing new players in the market
Transnet Pipelines
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• Transnet National Ports Authority is responsible for the safe, effective and efficient economic functioning of the national port system, which it manages in a landlord capacity.
• The national ports authority provides port infrastructure and marine services at the eight commercial seaports in South Africa.
• It operates within a legislative and regulatory environment created by the National Ports Act 2005 (Act No. 12 of 2005).
• The functions of the TNPA are:• To plan, provide, maintain and improve
port infrastructure;• to provide marine-related services;• to ensure the provision of port services,
including the management of port activities and the port regulatory function at all south African ports; and
• to provide aids to navigation and assistance to the maneuvering of vessels within port limits and along the coast.
• Container Sector• Dry bulk (such as coal, iron ore,
manganese, sugar, chrome ore, copper, lead, woodchips)
• Liquid bulk (such as petroleum products, chemicals, vegetable oils)
• Break-bulk (such as fruit, steel, scrap steel, ferro alloys) and
• The Automotive Sector.
Transnet National Ports Authority
TRANSNET
NATIONAL PORTS AUTHORITY
(TNPA)
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The Roles & Functions of TNPA
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Transnet National Ports Authority
33°1′S 27°54′E
33°57′S 25°38′E
33°48′S 25°41′E
33°54′S 18°26′E
29°52′S 31°2′E
28°48′S 32°5′E
33°1′S 17°57′E
MOSSEL BAY
TNPA Infrastructure:
19 container berths;
5 automotive berths;
21 dry-bulk berths;
7 Agri-bulk berths
29 break-bulk berths;
16 liquid-bulk berths
97 berths nationally
(82 Private Terminal Licenses)
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Thank YouTransnet Port Terminals
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TPT Corporate DVD
• Transnet Port Terminals provides cargo handling services at 16 terminal facilities in seven ports to a wide range of customers including shipping lines, freight forwarders and cargo owners.
• Operations are in containers, bulk, break-bulk and automotives.
• We invest in state-of-the-art cargo handling equipment (ship-to-shore cranes, straddle carriers, rubber-tyre gantries, tipplers, conveyors) and manage the logistics interface with inbound and outbound rail and trucking carriers.
• We are proud of the implementation of the NAVIS-terminal operating system and the certification of all our terminals to ISO standards.
• Transnet Port Terminals is Africa’s biggest container terminal operator in terms of volumes handled.
In line with Transnet’s new market demand strategy (MDS) and related investments, Transnet’s Port Terminals are currently expanding in response to growing business in the country.
Expansion includes creating storage capacity, the replacement of old equipment and upgrading of software.
Transnet Port Terminals
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7. SaldanhaBulk (Export iron ore),
Breakbulk
6. Cape TownContainers,
Breakbulk
4. NgquraContainers
3. East LondonContainers, Breakbulk, Agri-Bulk, Automotives
1. Richards BayBulk (Export Coal, Magnetite, Chrome) Breakbulk
2. DurbanContainers, Breakbulk, Agri-Bulk, Automotives
5. Port ElizabethContainers, Breakbulk, Bulk, Automotives
TPT Infrastructure:
• 4 Container Terminals (19 berths)
• 3 Automotive Terminals (5 berths)
• 3 Mineral Bulk Terminals (10 berths)
• 6 Break Bulk Terminals (22 berths)
• 0 Liquid Bulk Terminals (0 berths)
• 16 Terminals 68 berths
•
Transnet Port Terminals
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TPT EXCO
Mr Karl SocikwaCE Transnet Port Terminals
Mr Pru ArcharyChief Financial Officer
Dr Deirdre AckermannChief Information Officer
Ms Michelle PhillipsGM Commercial & Planning
Mr Dumisani KhuzwayoGM Human Resources
Ms Ntombeziningi SheziGM Procurement
Mr Zeph NdlovuGM Risk & Corporate Affairs
Ms Nombuso AfolayanGM Ops: KZN BBC
Ms Brenda MagqwakaGM Ops: KZN Containers
Mr Siyabulela MhlalukaGM Ops: Eastern Cape
Mr Velile DubeGM Ops: Western Cape
Mr Themba GwalaChief Operating Officer
Mr Josiah MpofuGM Engineering
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Port Terminals operates container terminals at the ports of:
– Durban,
– Port Elizabeth,
– Ngqura and
– Cape Town.
Port Terminals has an
annual capacity of
over 6.4 million TEUs
Container Terminals
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With a market share of 52%, Port Terminals handles mineral bulk at the ports of:
– Richards Bay,
– Port Elizabeth and
– Saldanha,
TPT handles agricultural bulk commodities at the ports of:
– Durban and
– East London.
Bulk Terminals
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Break-Bulk is handled in all the ports where TPT operates except Ngqura and is
best described as freight that is not classified as bulk and is not containerized.
TPT’s market share is 53% Break-Bulk is handled at:
– Richards Bay,
– Durban,
– East London,
– Port Elizabeth,
– Cape Town and
– Saldanha
Break-Bulk Terminals
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Port Terminals has a capacity to handle 850 000 units pa. TPT handles
100% of newly manufactured exports from South Africa and operates
automotive terminals at the ports of:
– Durban,
– East London and
– Port Elizabeth.
Automotive Terminals
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Containers*
Durban: 3.6 million Ngqura: 1.5 millionPort Elizabeth: 400,000Cape Town: 900,000
*TEUs
Agri-bulk*
Durban: 1.47East London: 0.76 Cape Town: 1.8
*mtpa
Automotives*
Durban Ro-Ro:520 00East London:139,000 Port Elizabeth:200,000
*FBUs
Bulk*
Richards Bay: 21Port Elizabeth: 5.5 Saldanha: 60
*mtpa
Break bulk*
Richards Bay: 8Durban Ro-Ro: 0.4Durban MW: 1.2East London: 0.21Cape Town: 1.2
*mtpa
65 4
3
2
1
7
Key:
1: Richards Bay2: Durban3: East London4: Ngqura
5: Port Elizabeth6: Cape Town7: Saldanha
SOURCE: Team Analysis
Transnet Port Terminals Capacity
38Containers and Dry Bulk contribute to 85% of TPT’s volume revenue
Market Size 4.3m TEU 132mt 672,000 15mt 32mt
0102030405060708090
100
Competitors
TPT
%
TPT Market Share
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Major commodities Imported through Durban
Containers 39,1%
Petroleum 41,8%
Vehicles 5,7%
Wheat 2,3%
Fertilizer 1,7%
Steel 1,6%
Cement 1,5%
Anim/Veg Oil 1,4%
Chemicals 1,3%
Rice 1,0%
Agric Prod 0,7%Mech/Elec Appl 0,4%
Coal 0,3%
Misc 1,3%
Other 19,1%
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Containers 63.6%
Petroleum 6.6%
Manganese 8,5%
Maize 4,7%
Vehicles 4,4%
Coal 3,4%
Wood Chips 1,6%
Steel 1,5%
Chemicals 1,3%Chrome Ore 1,1%
Sugar 0,9%Woodpulp 0,9%Citrus Fruit 0,5%
Misc 1,0%
Other 29,7%
Major commodities Exported through Durban
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Richards Bay Terminals
CARGO TYPE TERMINAL BERTHS USABLE BERTHS TERMINAL CAPACITY BERTH LENGTH BERTH DRAFT
Dry bulk Richards Bay coal 301, 302, 303, 304, 305, 306 6 91 000 000 2 029m 19m
Dry bulk DBT – woodchips 804 1 3 935 693 260m 19m
Dry bulk DBT – import 607, 701, 702 3 9 153 290 760m 14,5m to 19m
Dry bulk DBT – export 703, 704, 801 3 9 763 905 740m 19m
Dry bulk Richards Bay break bulk 606, 607, 608,706, 707, 708 6 8 962 000 1 244m 14,5m to 19m
Dry bulk Richards Bay bulk liquid 209 and 208 2 4 429 600 300m 14m
• Richards Bay is South Africa’s largest port, and handles large volumes of coal exports through the Richards Bay Coal Terminal and the Richcor rail corridor.
• The port also provides dry bulk, liquid bulk and multi-purpose terminals to handle mining, industrial and agricultural cargoes
• Potential for major expansions in all port precincts.
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Richards Bay Terminals
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Durban Container Terminals
DCT Pier 2 DCT Pier 1
CAPACITY: 2,900,000 TEU’s after deepening
CAPACITY: 700,000 TEUS
5 Equipped Berths (1,920m Quay Length)11.7-12.2m Draft
2 Berths (660m Quay Length)11.2-12.2m Draft
17 Post Panamax STS Cranes (7 x ZPMC tandem lift;8 Liebherr twin lift,2 Noell twin lift)
6 Post Panamax STS Cranes (Twin lift 18 Across)
115 Straddle carriers,53 Haulers2 Reach Stackers12 Empty Handlers
22 RTG’s45 Haulers (31 Cartage & W/S)2 Reach Stackers2 Empty Handlers
Stack area 110 hectareSlots: 14,18639,474 TEU’sReefer Plug Points: 1,744
Stack area 19.7 hectareSlots: 3,54824,960 TEU’sReefer Plug Points: 800
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Durban Point – Bulk, Break Bulk & Car Terminals
Berths 3 Automotive
Capacity 480 000 (Fully Built Units) FBUs
Cargo New & Second hand vehicles and high & heavy cargo
Berths 4 Break-Bulk & Containers
Capacity 400 000 tons per annum + 230 000 TEU
CargoHandles a niche market of container business as well as
Break bulk (abnormals, steel commodities and project cargo)
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Durban Maydon Wharf - BBC
Capacity 1.2 million tons per annum
Berths Access to 15 berths with a footprint align to 4 berths (MW9 to MW12)
Draft 9.6m - 10.3m
CargoComplex mix including project cargo, neo-bulk, steel coils and other
steel products, rice, timber, paper, malt, sugar, fertilizers and granite.
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Durban Agri Terminal
Agriport – handles maize, wheat, soya bean meal, sunflower pellets, woodchips and woodchips pellets.
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Port Elizabeth
CARGO TYPE TERMINAL BERTHSUSABLE BERTHS
TERMINAL CAPACITY BERTH LENGTH BERTH DRAFT
Containers PE container 102, 103 2 500 000 635m 12,2m
Cars PE motor vehicle 100, 101 1 120 000 342m 12,2m
Dry bulk PE manganese 13 1 4 900 000 360m 12,2m
Break bulk PE multipurpose 8, 9, 10, 11, 12 4 1 574 000 1 037m 7m to 11m
Liquid bulk PE liquid bulk 15 1 1 300 000 242m 9,9m
• Port Elizabeth has historically provided port services to the Eastern Cape region. These include container, automotive, multi-purpose and bulk terminals, and facilities for the fishing industry.
• The development of the new Port of Ngqura has provided an opportunity to relocate the bulk operations, with the option of expanding container operations and redeveloping the vacated sites on the southern portion of the port with additional vehicle handling facilities and a commercial development.
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Port Elizabeth Container & Car Terminals
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Port Elizabeth Bulk & Break Bulk Terminals
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Port of Ngqura
CARGO TYPE TERMINAL BERTHS USABLE BERTHS TERMINAL CAPACITY BERTH LENGTH BERTH DRAFT
Containers Ngqura container D100, D101 2 800 000 720m 16,5m
Dry bulk Ngqura dry bulk C100 1 24 000 000 316m 16,5m
Break bulk Ngqura multipurpose C101 1 957 000 316m 16,5m
Liquid bulk Ngqura liquid bulk B100 1 0 300m 18m
• The deep-water Port of Ngqura is South Africa’s newest port, and is focussed on bulk products and transhipment containers.
• The port services the adjacent Coega IDZ, and has the potential for extensive future development both up the river valley and through additional seaward basins.
• The port has an operational two berth container terminal, as well as three jetty berths, with an additional two container berths nearing completion.
• Current plans include a container transhipment hub, a liquid bulk terminal, a general cargo terminal, and a manganese export terminal.
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Ngqura Container Terminal
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Ngqura Container Terminal
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East London Terminals
• East London is situated on the Buffalo River, and provides Buffalo City, the IDZ, and the Eastern Cape with multi-purpose, liquid bulk, dry bulk and automotive terminals.
• Future expansion of the port is restricted by the narrow and shallow river basin.
CARGO TYPE TERMINAL BERTHS USABLE BERTHS TERMINAL CAPACITY BERTH LENGTH BERTH DRAFT
Containers Quay 6 K, L 2 93 000 506m 10,7m
Cars West Quay P, R 1 130 000 559m 9m
Dry bulk East London bulk S, T 1 4 000 000 388m 10,7m
Break bulk Quay 3 and 4 G, I 2 250 000 492m 11m
Liquid bulk Tanker Berth TB 1 2 400 000 259m 10,7m
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East London Car Terminal
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East London Grain Elevator
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East London Combi Terminals
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Cape Town
CARGO TYPE TERMINAL BERTHS USABLE BERTHS TERMINAL CAPACITY BERTH LENGTH BERTH DRAFT
Containers Cape Town container 601, 602, 603, 604 4 1 000 000 1 151m 12,8m to 15,5m
Dry bulk Cape Town dry bulk G, H 2 1 400 000 569m 12,2m to 12,8m
Break bulk Cape Town multipurpose B, C, D, E, F, J 6 4 200 000 1 368m 9,1m to 12,2m
Liquid bulk Cape Town liquid bulk TB1 and TB2 2 3 400 000 489m 13,7m to 15,2m
• Cape Town is the premier port for the Western Cape region, providing a full range of port services.
• Future port growth is limited by landside capacity, and the incorporation of the Culemborg and Salt River rail yards for back-of-port activities, and further seaward expansion to meet future container growth, will be required.
• The Duncan Dock precinct provides berthing for multi-purpose and bulk vessels, as well as for fishing and recreational craft and the ship repair industry.
• The container terminal is situated in the Schoeman Basin. The V+A Waterfront occupies the older portion of the port.
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Cape Town Container Terminals
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Cape Town Break Bulk Terminals
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Saldanha
CARGO TYPE TERMINAL BERTHS USABLE BERTHS TERMINAL CAPACITY BERTH LENGTH BERTH DRAFT
Iron ore Iron ore 101, 102 2 58 000 000 1 260m 23m
Break bulk Multipurpose 201, 202, 203 4 3 300 000 874m 13m to 15m
Liquid bulk Liquid bulk 103 1 25 000 000 360m 23m
• South Africa’s deepest port.
• Iron ore export jetty provides berthing for large dry bulk and liquid bulk vessels.
• Multi-purpose terminal and facilities for offshore rig servicing and fabrication.
• The port has the potential for expansion to support the adjacent industrial development.
• Future port expansion will require extensive land acquisition, as well as limited reclamation.
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Saldanha Iron Ore Terminal
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Saldanha Break Bulk Terminal
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Thank YouStrategic Thrusts
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TPT’s Vision
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Transnet is striving to be:
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Arrival at Port Limits1
Pilot Onboard (Cross breakwater)2
Tie Last Line
4
Untie Last Line (Pilot on-board)
5
Pilot Drop (Steaming out)
6
Terminal
Operation center/planning
GateYard
TPT is responsible for the process from first crane move (nr 4) to last crane move (nr 5)
Planning process and handovers are key enablers to influence fluidity
1St Move (Operations begin)
Last Move (Ship Operations finished)
7
A
Previous Port
B
Next Port
3
4 D
ays Po
rt Dw
ell Time
Vessel W
orkin
g Time
80 mins Truck Staging35 mins Truck Turnaround
Performance
- Productivity Improvement
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Performance
- Productivity Improvement
1
2
3
4
5
6
7
A
B
Vessel W
orkin
g Time
42
hrs
(2 0
00
TEU)
Po
rt Dw
ell Time
4 d
ays
Pilot on board
SARS agent Port Clearance
Immigration
Port Health
Ropes Tied
3rd
Party
2 h
rs
Arrival at outer breakwater
Truck booking system
An
cho
rage3
6 h
rs
TNP
A2
hrs
Pilot on board
Ropes Untied
TNP
A2
hrs
Berth on arrival if pre-arranged
Depart from outer breakwater
Stevedores
3rd
Party
1 h
r
Stevedores
Shipping Line Release
Gate
Yard 80 mins Truck Staging
35 mins Truck Turnaround
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Agile
- The Ultimate Port Call
1
2
3
4
5
6
7
A
B
PlanningArrival
Operation
Departure
Vessel W
orkin
g Time
Po
rt Dw
ell Time
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Admired
There will be renewed focus on Customer
Relationship Management across all the
sectors to ensure that customers are
satisfied with a tailor-made service they
receive from Port Terminals:
• Marketing
• Key Account management
• Contracting
• Customer experience Management
• Commercial capabilities
• Governance and Compliance
• Call Centre Management
• Volume validation
• New Business / Sales Management
• Volume & Revenue Trend Analysis
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TPT Model - IntelliPort
Smart Port
Smart Roads/Rail
Smart City
™
Digital
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1
2
3
4
5
6
7
A
B
Vessel W
orkin
g Time
Po
rt Dw
ell Time
United
Inland Terminal Yard
Activities
TFRMainline Transit
Back of Port Yard ActivitiesDepart Train
TNPA Vessel Berth
Inland Terminal Stack and Deliver to
customer
TPT Vessel Discharge and Load Rail
- Collaboration across Organisational Divisions
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Transnet & TPT Values
A Safety MindsetGood
Communication
Dignity & Respect
Empowered to Perform
Business FocusRecognition &
RewardDeliver on our
Promises
Transnet’s Culture Charter Values
TPT
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Port
1 Shanghai 36,537,000
2 Singapore 30,922,300
3 Shenzhen 24,204,600
4 Ningbo‐Zhoushan 20,626,000
5 Hong Kong 20,073,000
6 Busan 19,433,690
7 Guangzhou 17,570,000
8 Qingdao 17,435,600
9 Dubai 15,592,000
10 Long Beach LA 15,352,407
11 Tianjin 14,111,300
12 Rotterdam 12,234,535
13 Port Kelang 11,866,685
14 Kaohsiung 10,264,420
15 Antwerp 9,653,511
Top Container Ports in the World
Source: Alphaliner Monthly Monitor July 2016
75
.
75
80869598105114121123140146151
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193194194204210210226227227
249
276
315
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TPT Terminal Handling Cost Vs. Global Comparators
Research as at 19 July 2016Source - https://ecom.hamburgsud.com/ecom/en/ecommerce_portal/tariffs_and_surcharges/thc_calc/ep_thc_calculator.xhtml
The above graph clearly illustrates Transnet Port Terminal’s (TPT) commitment to keeping terminal handling costs
competitive to global comparators. TPL is 58% ($123) lower than the global average when compared to ports such as
Hamburg ($ 249) and Rotterdam ($ 227).
Terminal handling charges:
“Container from ship to stack and then onto transporter (rail or truck) inclusive of three (3) days storage. This also applies from land to ship.”
76
TPT RATED #1 IN AFRICA BY MAERSK
TPT Productivity Vs. Global Comparators Operating in Africa
77
Thank YouMarket Demand Strategy
78
MDS – TPT Investment over 10 Years = R61,7bn
Saldanha (7%) R4,1bn
Cape Town (5%)R 2,2bn
Richards Bay (23%)R 14,4bn
Durban (45%)R 27,9bn
Ngqura (5%)R 3.1bn
PE (1%)R 814M
Manganese (14%)R8.6bn
ELR 41m
4,830
2021/22
7,458
2024/25
61,766
Total2023/24
8,224
2022/23
12,508
2020/21
7,700
2019/20
5,261
2018/19
5,4796,353
2016/17
2,853
2015/16
1,100
ReplacementR 24bn
39%Expansion
R37.8bn61%
2017/18
79
MDS – First Four YearsDurban Harbour Entrance Ngqura Phase 2 – 4 STS Cranes, 18 RTG’s
Richards Bay C & D West Cape Town 2 STS Cranes
80
MDS – First Four YearsDCT 15 Straddles DCT Stack Rehabilitation
4 Liebherr Cranes Mid Life Refurbishment 2 New Rail Mounted Gantry Cranes for DCT
81
MDS – First Four YearsStaff Facilities at Pier 1 Berth 107 Pier 1 Truck Staging Area
Staff Facilities at Pier 1 2 New STS Cranes for DCT East Quay
82
• The assets in the container sector include:
• 45 ship-to-shore (STS) cranes, seven of which are tandem lift cranes
capable of lifting four 20-foot containers simultaneously.
• There is a fleet of 151 straddle carriers and
• 90 rubber-tyred gantry (RTG) cranes.
Asset BaseContainer Sector
Equipment DCT Pier 1 DCT Pier 2 CTCT NCT PECT
STS cranes 6 17 8 10 4
Straddle Carriers 0 115 12 0 26
RTG cranes 22 0 28 40 0
RMG cranes 2 3 1 2 0
83
• The assets in the Bulk sector include:
• Six tipplers and
• 10 ship loaders and
• 4 unloaders.
Asset BaseBulk Sector
Equipment Type Richards Bay Port Elizabeth Saldanha
Tipplers 2 2 2
Ship loaders 6 2 2
Ship unloaders 4 0 0
84
Port Infrastructure Investment to grow at 2.7% Annually
Source: BMI Forecaster
We remain upbeat on Transnet's ability to execute its plans at the port, despite current market dynamics. It is in a fairly strong financial position (relative to its parastatal peers) to execute its plans and we maintain its manageable debt load will keep borrowing costs accommodative.
85
MDS – Next Seven YearsDCT Prime Berth Expansion
Pier 1 Infill Maydon Wharf Quay Wall Rehabilitation
86
Richards Bay Future Expansion Plans
• Bulk operations form the core of the port’s activities and the primary challenge remains
to accommodate the growing demand for handling bulk cargoes.
• The achievement of this is planned to be through three main expansion projects. The
first is the Port Capacity Expansion Project (formerly ECICS) in the Bayvue precinct, the
second the 500 and 600 series terminal expansion for additional dry bulk and the third,
the development of a new coal terminal with a capacity of 32 mtpa, as part of the 500
series development. Other developments will include a ship repair and dry dock facility,
and an additional two berth liquid bulk terminal.
• The capacity of the liquid bulk terminal is currently 3,5 million kilolitres and an increase
to 5,5 million kilolitres is planned by 2025/26, to meet the medium term demand
forecast. Liquid bulk volumes are expected to grow from 1,9m to 6,9 million kilolitres
over a 30-year period.
• In addition to three liquid bulk berths adjacent to RBCT, an LNG facility is proposed on
the southern side of the entrance channel.
If volumes allow, then TNPA have plans to build a new Container Handling Terminal that will replace the current container handling facility.
Source: http://www.saoga.org.za/
87
87
Future Expansion Plans For Durban
The new Durban Dig-Out Port will be able to provide liquid bulk handling capacity and will include
deepwater berths in the port entrance to possibly replace the current SBM, which would have to be
repositioned to allow for the construction of the port’s new entrance channel.
The existing Port of Durban is some 20 km distant from Durban’s old airport site. The site is bordered by
the Umlaas Canal, the SAPREF refinery, the Prospecton industrial area, with the Toyota factory, and by
the N2 freeway in the foreground.
The proposed dig-out port on the old airport site will provide more than 20 new deepwater berths. The
new port will require its own entrance channel and breakwaters, and a new turning basin and tug harbour.
The fully-developed port will include container terminals, automotive terminals, and a fourberth liquid bulk
terminal with the capacity to berth VLCC vessels which are currently restricted to offshore moorings.
The current landscape of the proposed Dig-Out Port in Durban.
Shows an artists impression of the layout of the proposed Dig-Out Port in Durban.
Source: http://www.saoga.org.za/
88
88
Ngqura Future Expansion Plans
The section 56 process for the Ngqura liquid bulk terminal is progressing, with new berths and a tank farm
planned. These will replace the Port Elizabeth facility, which will be decommissioned once Ngqura is
operational. Expected to come online in 2017/18, initial capacity will be around two million kilolitres a year,
doubling to four million by 2020/21 to meet forecast demand.
TNPA is finalising the selection process for potential tank farm and liquid bulk terminal operators, in
anticipation of the relocation of liquid bulk facilities from Port Elizabeth after 2017, when the current leases
expire. This initiative would require one liquid bulk berth, with a new tank farm sited on high ground to the
east.
The proposed PetroSA oil refinery will require the importing of crude oil through an offshore SPM. The SPM
will have a capacity of 20 million kilolitres when the facility comes online in 2019/20, and will be sufficient to
meet the 30-year demand forecast.
The short-term plans also include a tug and admin harbour and a LNG berth at the root of the reconfigured
main breakwater.
Plans for the port include the addition of an energy cluster to the east of the port in association with the
adjacent IDZ, which will require extensive landside storage infrastructure, and a new liquid bulk basin
with outer breakwater on the Big Bay side of the jetty, with bunker and LPG berths.
Source: http://www.saoga.org.za/
89
89
Saldanha Future Expansion Plans
The short-term port expansion will require extensive land acquisition as well as some reclamation. The
port’s plans to expand its waterside and landside infrastructure are in line with the development of the
industrial development zone (IDZ) currently receiving high levels of governmental support.
The proposed first phase of the IDZ includes facilities for the oil and gas industry in the form of cargo
handling and repair facilities. An additional berth (Berth 205) is envisioned for the Multi-Purpose Terminal.
Short-term plans for the port include strategic land acquisitions to ensure improvements to the port access
corridor; the development of a port logistics park, and ensuring that the future growth of the port is not
restricted on the landside.
An extra liquid bulk berth is planned for the end of the Iron Ore jetty, along with an LPG SPM facility in Big
Bay. A privately funded development is providing additional berthing to the Mossgas facility to increase
capacity for oil and gas activities.
Medium-term plans for the port include the addition of a major energy cluster to the east of the port in
association with the adjacent IDZ, which will initially require extensive landside storage infrastructure, and a
new liquid bulk basin with outer breakwater on the Big Bay side of the jetty, with bunker and LPG berths.
Source: http://www.saoga.org.za/
90
TPT…. Where We Will Be In 10 Years
Pier 1 expansion with new Salisbury Island infill
and deepwater berths
Pier 1 Phase 2 Infill
North Quay Upgrade
http://www.ipavinhphuc.vn/en/support/project-construction-of-inland-container-depot-and-railway-station
Inland container depots…
Seamlessly Integrated SADC corridors
Strong presence at DDOP
91
Thank YouTPT Growth Strategy
92
TPT’s Growth Strategy
93
POLITICAL ENVIRONMENT
Left political swing
Political change in leadership perceived purging of political appointees
SADC political instability
ECONOMIC REALITY
Chinese economic adjustment Decreasing Oil prices Future Growth Markets in the African continent Low GDP growth in South Africa Volatile exchange rate Falling commodity prices Reduced energy supply Impact of industrial action
SOCIAL ENVIRONMENT
Xenophobia
High food prices
High fuel prices
Labour Unrest
High Unemployment
TECHNOLOGICAL
Big Data
Broadband policy review
Development of Smart Port City
Integrated supply chain solutions
Intelligent Ports
ENVIRONMENT/SUSTAINABILITY
Electricity supply interruptions
Renewable Energy
IMO Sulphur emissions control
LEGAL/REGULATORY ENVIRONMENT
IMO SOLAS Container Weight Verification
Consignor Consignee legislation
BCEA requirements re hours worked
Micro management of SOE’s by the state
Single Transport Economic Regulator Bill
Stricter enforcement of the OHSE Act
National Ports Act
National Development Plan Operation Phakisa National Maritime Policy National Cabotage Policy National Transhipment Policy Impact of new IMDG 24 hour dispensation
Macro Environmental Analysis
94
Porter’s 5 Forces
95
Strengths
Well-developed infrastructure in both Durban and Richards Bay
Established rail/road network to support movement of cargo
Deep water berths at Durban Ro-Ro Terminals
Substantial market share in the bulk sector and market leader in
handling iron ore and manganese
TPT holds 21 Terminal Operator licenses across the country
Owns and manages a large fleet of state-of-the-art cargo
handling equipment
Operates a complementary ports system that supports a single-
call strategy for shipping lines, enabling them to reduce sea
freight costs
Financially strong, healthy profit margins with the ability to fund
capital investment off its own balance sheet
Established client base and maintains good relationships with
shipping lines
Meets ISO standards and requirements in safety, environment
and quality
Uses market-leading information technology
Micro Environmental Analysis
Weaknesses
Dependency on 3rd Party Service Providers
Limited ability to offer value add services
Limited capacity for expansion opportunities - confined by city and
therefore has to comply to by-laws, which limits flexibility for
expansion
Berth outages, due to expansionary or maintenance activities by the
National Ports Authority present planning and operational challenges
and may pose a threat to volumes.
DCT Pier 2 reduced by 400 000 TEUs during the extension of berth
205 in 2016/17
The agricultural operation requires significant capital investment to
fully refurbish the facility; the existing volumes do not support this
investment. Port Terminals is seeking solutions through exploring
Private Sector Participation (PSP) to mitigate this challenge
Capacity is adversely impacted by growing vessel sizes
There is insufficient road capacity within the terminals to allow
faster movement and turnaround of trucks
96
Environmental Analysis
Threats
The volatile energy supply creates uncertainty around business
continuity
Imports and exports are directly impacted by the state of the South
African economy
The majority of Port Terminals’ volumes come from a few key
customers. This introduces concentration risk to the business
Declining commodity prices impact South African exporters’ ability to
sustain operations. Oversupply of magnetite & chrome to China,
Magnetite and Chrome secondary input products for steel production
and General market conditions
There is a growing presence of international terminal operators in
Africa
Terminals in neighbouring countries present a growing competitive
threat across all the sectors in which Port Terminals competes
Declining breakbulk volumes (steel, granite, paper and other).
Highveld Steel plant shutdown, Reduced demand for granite in Italy
and Mondi Paper migration into containers
Declined production from harbour bound industries in Richards Bay.
Local industries (RBM, Tronox , BHP and Foskor) facing difficulties
and less import/exports products including woodchips
Draft limitations in Durban may lead to customers moving to other
African ports
Labour market inflexibility and volatility may have a negative impact
on productivity levels and also lead to reputational damage
As it stands, RCB Terminal, when viewed in aggregate, is unable to
justify capital investment and presents a complex set of commercial,
operational and organisational challenges for management
Opportunities
There is growing demand for Port Terminals’ current services,
as well as opportunities to expand service offerings across the
transport value chain. Opportunities are being explored “back-
of-port” to offer warehousing and value-add services in the
container and automotive sectors
The implementation of the truck appointment system, with
relevant buy-in from road transporters, will ease traffic
congestion
Operational and planning efficiencies can be improved by
collaborating with major shipping lines
The implementation of a fleet management system will
introduce predictive maintenance scheduling
With Port Terminals’ network of terminals there may be
opportunities to provide a short-sea shuttle service
Support of Transnet’s regional integration strategy by applying
strengths and capabilities to countries in Africa
There are PSP opportunities that are being explored that may
reduce Port Terminals’ funding and operational requirements
and present opportunities for leveraging the capabilities of
partners for mutual benefit
The TVCC continues to facilitate improvements in operational
efficiencies and logistics integration with Freight
Opportunities to offer tailor made service to individual OEM’s
Partnering with government departments e.g. Department of
Trade and Industry to attract new OEM’s
Competing with neighbouring ports will increase service levels
97
Transnet Strategies to date
98
99
Reshaping the Core in 16/17
100100
TPT Growth Strategy
101
‘Game changer' goals:- Reshape the Core- Customers- Ops - CI- Employees
Finance & Capital Strategy
Commercial, Marketing & Planning Strategy
Operations, Continuous Improvement Strategy
Maintenance Strategy
Human Capital Strategy
Procurement Strategy
Information Systems & Innovation
Risk Management Strategy
Strategy
TPT Growth Strategy Roadmap
102
1. Labour costs Dumisani Khuzwayo2. Energy (Fuel and Electricity) Deidre Ackerman3. TNPA Land rentals Pru Archary4. Repairs, Maintenance and Mat Nttombeziningi Shezi5. Contract services Ntombeziningi Shezi6. Other costs & Discretionary Pru Archary
TPT Growth Strategy Initiatives
• Containers focused on majors including gateway and tranships:
– Value added initiatives and execution
• RCB Bulk Revenue Drive (MMC)– Magnetite, Chrome ore and Anthracite
• PECT, PE & EL MPT’s future: – Defend & growth current customers– Acquired - Build logistic services
• Manganese: realizing the 11.8mt• MPT’s Revenue Drive:
– CT MPT, MWF, POINT, SAL, RB
• Coal exports via RCB: – RBTG contract signed & execution of volume
• Agri Import Potential
103
• Containers focused on majors including gateway and tranships:– Value added initiatives and execution
• RCB Bulk Revenue Drive (MMC)– Magnetite, Chrome ore and Anthracite
• PECT, PE & EL MPT’s future: – Defend & growth current customers– Acquired - Build logistic services
• Manganese: realizing the 11.8mt• MPT’s Revenue Drive:
– CT MPT, MWF, POINT, SAL, RB• Coal exports via RCB: RBTG contract signed & execution of volume• Agri Import Potential
Grow Initiatives for 2016/17
The objective is to grow the current business through increasing volumes:
Commercial, Marketing & Planning Strategy
104
The objective is to protect the current business through cutting our expenses by 25%:
1. Labour costs Dumisani Khuzwayo
2. Energy (Fuel and Electricity) Deidre Ackerman
3. TNPA Land rentals Pru Archary
4. Repairs & Maintenance and Materials Ntombeziningi Shezi
5. Contract services Ntombeziningi Shezi
6. Other costs & Discretionary Spend Pru Archary
Defend TPT’s Business (Reshape the Core)
Finance & Capital Strategy
105
Diversification - Supply Chain Integration
TPT DIVERSIFICATION STRATEGY 2015 – 2020
1. Value added services – Pre Trip Inspections (Velile)
2. FMCG/Atlantis/Culemborg/Belcon Freight Station (Velile)
3. Stuffing and de stuffing of containers (Brenda)
4. Third Party Logistics - MOUs with Barloworld, Imperial (Ningi)
5. Saldanha IDZ (Velile)
6. Ngqura – CDC/Freight Station (Siya)
7. Cato Ridge (Michelle)
8. Dube Trade Port/Air Freight (Michelle)
9. Edwin Swales (Brenda)
10.Pendoring & Steelpoort (Michelle)
11.Clearing & Forwarding (Zeph)
12.Richards Bay IDZ (Nombuso)
11.Maydon Wharf Precinct (Nombuso)
12.Mini RBEP (Includes Coal Triangle and RBGT) (Nombuso)
13.Cars for Africa (Pru)
14.Manganese move to Ngqura (Pru)
15.East London Grain Elevator PSP (Siya)
16.Liquid Bulk (Deirdre)
17.Intelli-Port (Deirdre)
18.Short Sea Shipping (Zeph)
19.Compliance to SOLAS (Michelle) & Consignor (Brenda)
20.Employee Initiatives to support SC Integration (Dumisani)
Commercial, Marketing & Planning Strategy
106
Game Changers for 2016/17 to 2018/19
Project Sponsor
A
B
C
D
Value Added Services
11. Cars for Africa Site Pru12. Maydon Wharf Precinct Nombuso 13. Richards Bay mini Expansion Project Nombuso
16. FMCG Belcon/Atlantis/Culemborg Velile
17. Liquid Bulk Deirdre
7. West Coast IDZ Velile
Cooperation with Third Party Logistics Providers
19. Short Sea Shipping Zeph
Special Economic Zones
18. Intelli-Port Deirdre
Breaking New Ground
1. Long Term storage, Micro dotting, Pre Trip inspections Velile
14. Manganese Move to Ngqura Pru15. East London Grain Elevator PSP Siya
6. Ngqura – Coega Development Corporation Siya
8. Cato Ridge Freight Station with TFR Michelle9. Pendoring & Steelpoort Michelle
3. Diversify into Air Freight, MOU with Dube Trade Port Michelle
5. Richards Bay IDZ Nombuso
2. Expansion into Clearing & Forwarding services Michelle
10. Edwin Swales Inland Container Depot Brenda
4. Sign MOU with Dube Trade Port re joint marketing Michelle
Back of Port Operations and Inland Depots
E
Diversification - Supply Chain Integration
107
Thank YouGlobal Expansion
108
Global Expansion
109
African Integrated Maritime Strategy Vision 2050
Alignment with Operation Phakisa
Target markets• Benin• Nigeria• Ghana• Angola• Namibia
Value proposition• Maritime Development Funding • Ship building & repair, offshore vessel
building & repair• Port Management & Operations• Planned Maintenance Package• Training
Key enablers• Targeted Buying Missions with the
President using trade agreements
• Kenya• Tanzania• Mozambique• Mauritius
To foster increased wealth creation from Africa’s oceans and seas by developing a sustainablethriving blue economy in a secure and environmentally sustainable manner.
110
Geographic Expansion Initiatives
Project Description Description Location
1. Tanzania – Concession to operate Berths 13 & 14 in Dar es Salaam Port
Transnet/Aveng consortium pre-qualified and GCE approved submission of a concession bid to design, build, finance and operate the terminal.
Bid due 22 April 2015 but have just received notification of 1 year delay in process.
Geographic Expansion East Africa Shipping Hub
2. Nigeria – Concession for terminal operator in Warri Port – EOI Submitted with Rosehill group
Geographic Expansion West Africa Shipping Hub
3. Nigeria – Proposed TE maintenance facility in Lagos – project on hold Geographic Expansion West Africa Shipping Hub
4. Kenya – Concession to develop and operate 3 berths in the Port of Lamu (part of the Lappsett Corridor) – Government of Kenya have requested the consortium (Transnet/DBSA/Group5/Dredging International/Mwalimu Ltd) to submit a framework agreement to undertake a prefeasibility study that will inform a priced bid
Geographic Expansion East Africa Shipping Hub
5. Zimbabwe- Technical partner and equipment supplier needed for recapitalisation of NRZ.
Export Sales
Cross Border VolumesNorth South Corridor
6. North/South Corridor – W.I.P. Operational improvement project involving 6 railway companies
Cross Border Volumes North South Corridor
7. SADC – Development of a locomotive leasing pool is being driven through the NBF Africa Infrastructure Desk
Export Sales
Cross Border VolumesSADC
111
Cotonou, Benin Phase 2
- Cont, Bulk & BB
2016/17 African Projects
Lamu, Kenya
- Cont, Bulk & BB
Dar 13 & 14, Tanzania
- Container Terminal
Warri, Nigeria Douala, Cameroon
Ports of Matadi, Boma
and Kinshasa in the DRC
Takoradi, Ghana
- Dry Bulk Terminal
Minergy, Senegal
- Dry Bulk Terminal
112
• Currently TPT generate R441m from transhipment in Ngqura to other African
countries. The intention is to grow this to R790m by 2020/21.
• Transnet has signed a Technical Services and cooperation agreement with the
port of Cotonou, Benin commencing September 2015. This includes the sale
of GCOS as well as deployment of an operations/consulting team to Benin for
a period of 5 years.
• TPT submitted a bid for a DBOT-concession for berths 13 & 14 in Dar es
Salaam to grow the Tanzanian percentage contribution to this figure. TPT
has been shortlisted but process currently on hold pending changes post the
election. It is foreseen that actual monetary returns from obtaining the
concession will not be derived within the initial period of the concession as the
first 6 or 7 years will be spent by our bid partners, Aveng on constructing the
infrastructure.
• TPT (and TFR) submitted an Expression of Interest on 16 November 2015 for
a concession for the Ports of Matadi, Boma and Kinshasa in the DRC, and
the railway between Matadi and Kinshasa.
• TPT has been shortlisted for a concession for the Port of Warri, Nigeria in
2015. Awaiting progress from Nigeria.
Regional Integration Strategy
113
Transnet’s Regional Integration Strategy
Trans-
shipment Hub
Geographic Expansion
Pursue option to invest in rail, port and pipeline operating concessions
Relationship management
Revenue growth
1
Export Sales
Position TE as preferred OEM for Africa
Launch the Africa Locomotive
Increase export sales
2
Transhipment Hub
Grow transshipment revenue
Create a specialised unit in TPT/TNPA to focus on short sea shipping & transhipment
Promote linkages between short sea shipping and rail operators
Create alliances with trans-shipment destination ports
3
Cross-border Volumes
Focus on three rail corridors
Set up joint-operating centres
Increase cross-border rail volumes Increase annual revenue
4
Transnet International Holdings
114
Transhipment Competitor analysis: Competitors categorisation
• Salalah (Suez)
• Las Palmas
• Algeciras
• Valencia
• Carribean(Panama 2016)
• Pointe Noire
• Kribi Deep Seaport,
• Bagomoyo(Proposed)
• Lome (MSC)
• Tema
• Badagry & Lekki(New)
• Tangiers, Algiers, Djibouti (N)
• Direct callers compete with transhipment hubs at a supply chain level in terms of cost and service delivery time
• Walvis Bay
• Port Louis
SADC HUBS DIRECT CALLERS
INTERNATIONAL HUBSAFRICAN HUBS
115
Africa’s Port Capacity
Dar es Salaam, Tanzania
(612,600 TEU)
Mombasa, Kenya
(1.2m TEU)
Port of Tangier, Morocco
(2,964,324 TEU in 2015)
Port of Durban
(2,770,335 TEU in 2015)
Port Said, Egypt Port Alexandria, Egypt
(1.6m TEU in 2014)(3,850,000 TEUs in 2015)
56
50 37
116
Beira, Mozambique
(218,700 TEU)
Africa’s Port Capacity
Luanda, Angola
(210,000 TEU)
Walvis Bay, Namibia
(750,000 TEU 2017)Port Louis, Mauritius
(556,350 TEU)
Lagos, Nigeria
(1,538,086 TEU in 2015)
Lobito, Angola
(118,000 TEU)
93
117
Port of Jebel Ali, UAE
(15.2m TEU in 2014)
Competition from the Middle East & Med
Port of Salalah, Oman
(3.34m TEU)
Port of Khor Fakkan, UAE(3.8m TEU)
Port of Jeddah, Saudi
(4.68m TEU)
Port of Valencia, Spain
(4.4m TEU in 2014)
Port of Algercias, Spain
(4.5m TEU in 2014)
118
• CARRIERS could save an average of $17.7m per year per service by sailing south of
Africa, if shippers would accept an extra week’s transit time on the headhaul,
according to new research from SeaIntel.
• By calculating the costs of extra vessels needed on the trade lane and the additional
bunkers required, then removing the cost of transiting the Suez Canal, SeaIntel
calculated some services could save as much as $19m a year. Even the service with
the least benefit would gain as much as $7.3m a year.
• “If carriers also route the backhaul leg around SouthAfrica, the fuel savings alone
from the slower sailing speed would add an additional average saving of roughly $5m
a year per service, in addition to the backhaul canal fee savings of approximately
$20m a year per service, while the entirety of the added vessel costs are already
factored into the savings on the headhaul,” SeaIntel said.
• “This is a massive additional incentive for the South Africa routing on the headhaul.”
Cheaper to Sail South Africa rather than Suez
Source: Lloyds List 01.03.16
119
Thank YouTPT Value Proposition
120
TPT’s Value proposition to the Industry
UNITED
AG
ILE
Collaboration
Available Capacity
Operational Strategy
Performance
Commercial
CRM
- CI Partnering initiatives- Value Added Services - Customisation where possible- Joint strategy sessions with
customer/Industry - Complimentary Port/ Terminalsystem
- Adequate berth length & draft- Adequate storage & equipment- Well resourced Terminals
(equipment & people)
- Seamless approach- Berthing windows to support global network
product at lowest cost to lines - Transhipment hubs with international and
regional interconnectivity- Effective stock management to reduce stock
losses, claims, contamination.- TVCC Supply chain integration with TFR- Reducing supply chain costs- Use of technology
- Berth Planning- Optimal dwell times- Vessel, Road & Rail Planning and optimal turnaround times- Unit per hour handling rate targets- Minimal claims- Customer centric EDI based business processes - Berthing Window compliance- Cargo & vessel security
- Differentiated pricing for Integrated contracts (Composite Basket Indices),
- Competitive pricing- Extended storage- Competitive Volume based pricing on
t/ships
- IKAM- CRM Mobile app- Customer service center- Operational engagements daily, weekly &
monthly- Monthly & quarterly strategic customer
engagements- Integrated meetings with strategic
customers (Local and international)
121
Service Offering to International Clients
122
Offering from Transnet SOC Ltd
As an African State-owned Entity with extensive experience, deep capabilities and unique expertise across the logistics supply chain, Transnet delivers competitive, innovative, end-to-end logistics solutions by creating partnerships to support customers throughout the logistics life-cycle and across all requirements, to sustainably grow together
Planning Operations Consulting and Advisory
Engineering and Maintenance
Enable growth through
short, medium & long
term planning of rail,
port and pipeline
operations
High level conceptual
and feasibility studies
of port, rail and
pipelines including
advisory services for
port cities
Design operations
through business &
systems planning
Operate port, rail and
pipeline facilities
Promote the integration
of port and rail solutions
to generate seamless
logistics solutions
Establish and operate
seaport terminals,
inland terminals and
warehouse facilities
Extend port & rail
equipment life-cycle
through maintenance and
equipment supply
Provide property life-cycle
management and safety
programs to reduce costs
and improve working
conditions
In-service maintenance,
upgrades, as well as
conversion, manufacturing
and supply of new rolling
stock
Training and Development
Leverage Transnet’s
extensive knowledge
and experience across
the logistics value chain
to provide value adding
training services across
the continent
Utilise Transnet’s
various schools to
transfer skills and to
create sustainable
organisations across
Africa
Provide engineering,
infrastructure & technical
services for optimal rail,
port and pipeline asset
utilisation and planning, as
well as EPCM1
Installation, customisation
and support of IT (GCOS)
solutions for port terminals
Provide advisory on port
management, marine and
port authority related
matters to improve focus
and efficiency
Our support services enable organisations to access financing, capital dredging, construction and pre-construction design, as well as other key enablers to your logistics offerings
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Transnet Ports’ service offering
• Transnet’s distinct port operations and authority enable efficient port terminal operations and the
offering of maritime and port development services
Port Terminals
Monitoring and executing port terminal operations
National Port Authority
Maritime authority responsible for safe, efficient and effective ports management
Terminal Operations
Value-Added Services
Advisory
Provide commercial cargo handling services of sea freight across imports, exports and transhipments in containers, bulk, break bulk & automotive
Operate terminals in several African commercial ports Import and export operations across sectors including containers,
mineral bulk, agricultural bulk and roll on/roll off services Trade facilitation and customized value added logistics services
Staff training in port operations and cargo handling Renewable energy solutions including solar power
Improve and coordinate transhipments processes Provide an understanding of General Cargo Operations System IT
system and support its implementation
Maritime Services
Port Development
Advisory
Infrastructure expansion and requirements planning Technical planning including aspects such as depth, capacity, resources
and equipment requirements Adjacent infrastructure requirements such as access road specifications Managing port activities and port regulatory functions
Provide dredging, navigation, ship repairs, hydrographic surveys and marine operations
Port management and divisionalisation advisory IT infrastructure (Integrated Port Management System) Integrated port and city planning partnerships
Port Infrastructure
Provides infrastructure for containers, dry bulk, liquid bulk, break bulk and automotive such as stockpiling and warehousing
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Transnet Rail’s Service Offering
• Transnet Freight Rail and Engineering divisions provide rails solutions that span from rolling stock
manufacture to rail advisory and operations
Freight Rail
Offering freight rail logistics solutions across sectors
Engineering
Manufacture, assemble, upgrade, refurbishment conversion & maintenance of locomotives, coaches & wagons
Planning
Operations
Advisory
Repair & Maintenance
Railway line operations Signalling & telecommunications IT/scheduling systems and platforms National rail command centre management capability Freight management across agriculture, liquid bulk, iron ore and
manganese, containers, automotive business, coal, chrome, etc.
Develop customers’ businesses through short, medium & long term planning of infrastructure and operations
Technical rail consulting including advisory on infrastructure, asset planning and operational efficiency
Construction of and rehabilitation of railway lines, partnering for other construction
Installation of technology and systems
Rail-related Rolling Stock
Port Services
Advisory
Manufacturing of bath tub trailers, skips and containers Refurbishment of dolley trailers, ship-to-shore carriers & hoppers Maintenance of grabs, skips, electrical motors, & straddle carriers
Offers in-service maintenance, repair, upgrade, conversion and manufacture of freight wagons, mainline and suburban coaches, as well as diesel and electric locomotives
Original equipment manufacturer of wagons with custom designs of heavy haul coal & iron ore wagons, cement wagons, car carriers, intermodal wagons as well as fuel and gas tankers
Provides wheels, rotating machines, rolling stock equipment castings, auxiliary equipment and services
Inter-modal logistics solutions Training on equipment maintenance and operations Research and design services in line with customer specifications Facilitate equipment leasing
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Transnet Pipelines Service Offering
• Transnet’s pipeline offerings include pipeline operations and maintenance, and extend to technical
services, training and advisory
Pipeline
Oil & Gas Pipeline Operator:Responsible for transportation of petroleum and gas products via a pipeline network
Pipeline Operations
Terminalling
Technical Services
Transport petroleum and gas products via pipeline Operates pipelines with internal diameter ranging from 150mm to
610mm Monitors pipeline integrity and conducts pipeline maintenance to
ensure security of supply of petroleum products to five provinces of South Africa
Coordinates intermodal petroleum delivery with rail and other modes to ensure reach beyond Transnet’s pipeline network
Conduct risk assessments around pipeline infrastructure Planning, scheduling and coordination of product movement
throughout pipeline network Metering, conducted in compliance with API standards Automated pipeline control
Training
Conduct training for pipeline maintenance, management and depot operations
Conduct safety programs
Advisory
Provide planning and scheduling coordination Reputation management and customer relationship management Provide compliance, regulation and marketing advisory
Capabilities for liquid fuels storage with and road and rail load out facilities
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Transnet Capital Projects Service Offering
• Transnet Capital Projects has extensive experience in managing mega projects, and is in a position
to advise other state-owned logistics operators on implementation of infrastructure projects
Transnet Capital Projects is a specialised unit within Transnet, responsible for implementation and coordination of mega projects and is one of the primary channels for meeting our capital investment plan
Infrastructure Development and Planning
Project Management for Mega Projects
Stakeholder Management for Key Projects
Conduct feasibility studies of major infrastructure development and logistics
Provide property life-cycle management support
Provide fit-for-purpose infrastructure safely, on time, within budget and according to specification
Coordinate project implementation to enable operating teams to focus on operational delivery
Schedule and cost projects for timely delivery
Ensure project excellence and successful delivery through appropriate technology and innovation
Engage in community upliftment and social infrastructure development
Ensure integration of systems and processes across operational areas in order to deliver the organisation’s capital plan seamlessly
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Transnet Academy’s Training Service Offerings
• Transnet’s schools offer a wide range of training options to equip individuals to perform both
technical and business roles across ports, rail and pipelines logistics solutions
Maritime School of Excellence
School of
Rail
The Institute of Technical Training, Pipeline and Security
School of Leadership, Business Training and
Commercial
Prepares learners for port and port authority roles both
in South Africa and in the Southern African region
through various local and international collaborations
Assorted rail-related training including operations,
signalling, permanent way construction, welding, maintenance, railway
engineering and safety training, in South Africa and
internationally
Developing technical skills for critical roles such as apprentices, artisans, engineers, planners, operators, protection
officers, investigators and peace keepers
Competencies related to business, management and
leadership in the logistics sector with the relevant accreditations deliver for the competitive market
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Thank YouAlignment with Government’s Strategies
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Alignment with Provincial Strategies
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Western Cape Strategic Goals
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Eastern Cape Strategic Plan
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