1. 1
Readying our Ports for an Onslaught of Trade
Mr Karl SOCIKWA -Chief Executive of Transnet Port Terminals
2. AGENDA
TRANSNET PORT TERMINALS: Preparing our Ports f 2 or an Onslaught of Trade
About Transnet
Complementary Port System
Transshipments and Regional Integration
Market Demand Strategy
Infrastructure Development
3. ABOUT TRANSNET – Who we are
3
• 16 Cargo
Terminals
operating
across 7 SA
ports
• Revenue R8.5
bn
• Assets R13.5
bn
• 6 324
employees
Supporting
• 8 Commercial
ports along
2 798 km of
coastline
• Revenue
R8.4bn
• Assets R 72 bn
• 3 823
employees
• 20 500 km of
railway track
• 182 million tons
of freight
• General freight &
2 heavy haul
export lines
• Revenue 27.6 bn
• Assets R61.3 bn
• 24 177
employees
• Support TFR for
rolling stock and
TPT for lifting
equipment
maintenance
• Revenue 11.2
bn
• Assets R7.6 bn
• 12 570
employees
• 18 billion litres
of petroleum
products and
gas through 3
000 km of
pipelines,
mainly to
Gauteng
• Revenue 2.1 bn
• Assets R19.3
bn
• 630 employees
• R300 billion of
capital
investments
over 7 years
• CSI in
Education,
Health, Sport,
Arts &
Agriculture
• Property
Management
• Transnet
Schools
Capital
Projects
Transnet
Foundation
Property
Schools
Transnet
Pipelines
(TPL)
Transnet
Engineerin
g(TE)
Transnet
Freight
Rail
(TFR)
Transnet
Port
Terminals
(TPT)
Transnet
National
Ports
Authority
(TNPA)
Ports Rail Pipelines
TRANSNET PORT TERMINALS: Preparing our Ports for an Onslaught of Trade
4. Extensive Rail and Port Network
4 TRANSNET PORT TERMINALS: Preparing our Ports for an Onslaught of Trade
5. AGENDA
TRANSNET PORT TERMINALS: Preparing our Ports f 5 or an Onslaught of Trade
About Transnet
Complementary Port System
Transshipments and Regional Integration
Market Demand Strategy
Infrastructure Development
6. Complementary Port System
6 TRANSNET PORT TERMINALS: Preparing our Ports for an Onslaught of Trade
4. Ngqura
Containers
3. East London
Containers, Breakbulk,
Agri-Bulk, Automotives
1. Richards Bay
Bulk (Export coal,
magnetite, Chrome),
Breakbulk
5. Port Elizabeth
Containers, Breakbulk,
Bulk, Automotives
WESTERN CAPE PORTS
EASTERN CAPE PORTS
KZN PORTS
7. Saldanha
Bulk (Export iron
ore),
Breakbulk
2. Durban
Containers, Breakbulk,
Agri-Bulk, Automotives
In 2013/14, TPT handled:
4.5 Million Containers
77.1 Million Tons of Bulk Cargo
11.2 Million Tons of Break-Bulk
0.7 Million New Automotive Vehicles
6. Cape Town
Containers, Breakbulk
7. AGENDA
TRANSNET PORT TERMINALS: Preparing our Ports f 7 or an Onslaught of Trade
About Transnet
Complementary Port System
Transshipments and Regional Integration
Market Demand Strategy
Infrastructure Development
8. 10 x NEW 18,000 TEU ships on order
8 TRANSNET PORT TERMINALS: Preparing our Ports for an Onslaught of Trade
9. Southern Hub for World Shipping
9
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
TRANSNET PORT TERMINALS: Preparing our Ports for an Onslaught of Trade
10. Regional Integration
10
Transnet is recognised as the leading logistics service provider in sub-Saharan Africa
The Hubs, Rail Corridors and Shipping Feeder networks depicted on the 2030 vision do not
necessarily represent physical ownership by Transnet – the illustration is intended to depict the
areas where Transnet will have an operational presence and/or an ability to influence the logistics
chain and growth of cargo corridors.
TRANSNET PORT TERMINALS: Preparing our Ports for an Onslaught of Trade
11. Corridor development
11
Building on Inter-Country
Agreements…
Bilateral agreements aim to
promote inter-operability between
SADC railways and typically define
operational, safety and technical
standards between corresponding
countries
…To Develop Corridors
Corridors are a broader concept
defined by flows of goods across
railway and country boundaries in
a seamless manner and require
cooperation between multi-role
players
…That facilitate Regional
Growth
TRANSNET PORT TERMINALS: Preparing our Ports for an Onslaught of Trade
12. AGENDA
TRANSNET PORT TERMINALS: Preparing our Ports f 12 or an Onslaught of Trade
About Transnet
Complementary Port System
Transshipments and Regional Integration
Market Demand Strategy
Infrastructure Development
13. Market Demand Strategy
13
• R312.2 bn capital investment program over the next 7
years
• Increase in capacity ahead of market demand
despite slower economic growth both locally and
internationally, impacting negatively on rail and port
commodities
• Continued financial stability and strength – Cash
interest cover and gearing ratios remain within target
levels
• Significant productivity and operational efficiency
improvements
• Shift from road to rail – reducing the cost of doing
business and carbon emissions. Expanding rail
infrastructure to handle 343.9 m tons from 210.4
m tons
• Enabling economic growth, job creation, skills
development, localisation, empowerment and
transformation opportunities
TRANSNET PORT TERMINALS: Preparing our Ports for an Onslaught of Trade
14. Impact on Economy
14
MDS is expected to create 15,000 direct and up to 588,000 indirect job opportunities
across the economy
TRANSNET PORT TERMINALS: Preparing our Ports for an Onslaught of Trade
15. AGENDA
TRANSNET PORT TERMINALS: Preparing our Ports f 15 or an Onslaught of Trade
About Transnet
Complementary Port System
Transshipments and Regional Integration
Market Demand Strategy
Infrastructure Development
16. TPT Capital Investment History
16
Investment climbed from R131m in 2001/02 peaking at R3.2bn in 2008/09
TPT Investment (R2,363m)
(5 years: 2001/02 to 2005/06)
TPT Investment (R10,277m)
(5 years: 2006/07 to 2010/11)
2001/02 2002/03 2003/04 2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11
Port concessioning
dilemma
Infrastructure backlog catchup
& expansion drive
Global recession
& investment
cutbacks
2008/09 2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17 2017/18 2018/19
3200
2337
913 1137
2551 1859 1909
2774
3795 3860
5889
2009/10
Boom-time
Ends
Global recession
Market Demand Strategy
TPT R33bn 7yr Investment Plan
TRANSNET PORT TERMINALS: Preparing our Ports for an Onslaught of Trade
17. TPT 10 Year Capital Investment Plan
17
Sishen –Saldanha R 7.076bn
Iron Ore Expansion (60-
80mtpa): R 6.546bn
Other (Bulk): R 529m
7
Durban: R 21.390bn:
Containers: R 20.191bn
Bulk: R 792m
Automotive: R 317m
Other: R 91m
Richards Bay corridor: R 14.886bn
1 909 2 774 3 795 3 860
5 889
8 720
10 256
3 892 3 391 4 089
0
5 000
10 000
Y1 14/15 Y2 15/16 Y3 16/17 Y4 17/18 Y5 18/19 Y6 19/20 Y7 20/21 Y8 21/22 Y9 22/23 Y10 23/24
Eastern Cape R 3.437bn
Containers: R 2.936m
Manganese: R 432m
Bulk: R 70m
TRANSNET PORT TERMINALS: Preparing our Ports for an Onslaught of Trade
18. 18
In Conclusion
• South African ports are open 24 hours per day X 7 days per week
X 362 days per year
• Synchronise hours of operation to utilise full 24 hours
• Make use of our state-of-the-art truck booking system
TRANSNET PORT TERMINALS: Preparing our Ports for an Onslaught of Trade
