TRANSNET PORT TERMINALS

- South African port trends and current developments in the industry

Siya Mhlaluka GM: EC Operat...
TABLE OF CONTENTS

TRANSNET SOC LTD
INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
TPT STRATEGIC RESPONSE...
TRANSNET STATE OWNED COMPANY LTD

- OPERATIONAL DIVISIONS

Transnet
National
Ports
Authority
(TNPA)

•

•

Transnet
Port
T...
TRANSNET PORT TERMINALS
#1 Terminal Operator in Africa

Company

2011 Total
Throughput
‘000 TEU

2011 Equity
Throughput
(‘...
TABLE OF CONTENTS

TRANSNET SOC LTD
INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
TPT STRATEGIC RESPONSE...
55 AFRICAN COUNTRIES , 38 COUNTRIES WITH PORTS
delivering freight reliably

Algiers
(Algeria)

Cotonou
(Benin) Lagos
Abidj...
SADC CHALLENGES

The SADC region is regarded as the next growth frontier due to its extensive minerals wealth, growth in
c...
KEY INTERVENTIONS REQUIRED
RESPONSE TO CHALLENGES

Ports to improve Inter-Regional Trade
 Development of SADC ports that ...
TABLE OF CONTENTS

TRANSNET SOC LTD
INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
TPT STRATEGIC RESPONSE...
GEOGRAPHICAL CONTEXT
Challenge & Opportunities

Global context

Regional context

National context

• SA’s distance from i...
INDUSTRY TRENDS

Globalisation

Trade Patterns

 Increased
international
freight flows a
fundamental
component of
recent ...
TRENDS IN THE SHIPPING INDUSTRY
- 10 New 18,000 TEU ships ordered by Maersk

Source: Nick Souza Photography Marine Traffic...
VESSEL SIZES

If all the 20 Foot Equivalent Unit (TEU) sized
Containers from the world's largest container ship,
the Emma ...
SOUTHERN HUB FOR WORLD SHIPPING ROUTES

The position of South Africa’s ports system enables it to access to
South-South tr...
GREATER COLLABORATION (RATHER THAN COMPETITION)
NEEDED BETWEEN AFRICAN PORTS
Algiers
(Algeria)

Port Said
(Egypt)

Dakar
(...
TABLE OF CONTENTS

TRANSNET SOC LTD
INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
TPT STRATEGIC RESPONSE...
TRANSNET PORT TERMINALS
An integrated system of complementary regional ports and rail corridors

CONTAINER TERMINAL
DRY BU...
PORT OF DURBAN : AT A GLANCE

PAGE
DURBAN CONTAINER TERMINALS : EQUIPMENT &
INFRASTRUCTURE UPGRADE

PAGE 19
DURBAN MPT TERMINALS – POINT RORO

PAGE 20
DURBAN MPT TERMINALS – POINT RORO

DURBAN MPT TERMINALS – MAYDON WHARF, AGRI

PAGE
DURBAN EXPANSION PLANS FOR DURBAN
FUTURE MPT TERMINALS – POINT RORO
PORTDurban International Airport (DIA) Site
- Ex OF NG...
FUTURE MPT TERMINALS – POINT RORO
DURBAN PLANS FOR DURBAN

PORT OF NGQURA the new Dig-Out Port at ex-DIA Site
- Artist’s V...
DURBAN MPT
RICHARDS BAY TERMINALS – POINT RORO
RICHARDS BAY TERMINALS

PAGE 24
RICHARDS BAY DRY BULK TERMINALS : EXPANSION

PAGE 25
PORT OF EAST LONDON : AUTOMOTIVE BACKBONE

PAGE 26
DURBAN MPT TERMINALS – POINT RORO

PORT ELIZABETH : UPGRADE AND EXPANSION
PORT ELIZABETH

PAGE 27
DURBAN MPT TERMINALS – POINT RORO

PORT NGQURA : CONTAINER TERMINAL EXPANSION
PORT OF OF NGQURA

PAGE 28
NGQURA EXPANSION PLANS
MDS - PORT CONTAINER TERMINAL
- EVOLUTION
Port of NgquraOVER 10 YEARS

AFTER: 2010
Ngqura Container...
PORT OF CAPE TOWN : EXPANSION PROJECT

PAGE 30
PORT OF SALDHANA : EXPANSION OPPORTUNITIES

PAGE 31
TABLE OF CONTENTS

TRANSNET SOC LTD
INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
TPT STRATEGIC RESPONSE...
TPT NEW STRATEGIC DIRECTION

Local
Operations

Global
Operations

Defending and
growing the
Home Turf

Integration
into th...
TPT’s AFRICA STRATEGY IS RESPONSE TO :
“THE AU HAS IDENTIFIED 14 CORRIDORS FOR
DEVELOPMENT”
2

3
4
5

6

1

Kenitra-Casabl...
TPT AFRICA STRATEGY

GROWTH DRIVEN BY GDP
Southern Africa Economic Outlook

2014

2015

Angola

8.2

7.8

7.01

5.6

5.5

...
ENABLING ENVIRONMENT
REGIONAL INTEGRATION

Political Stability and
Will

Policy & Legislation
Infrastructure
Development

...
Our President was quite clear on this when he said in 2011:
"Regional and continental infrastructure development is of fun...
Upcoming SlideShare
Loading in …5
×

South African Port Trends and Current Developments

2,114 views

Published on

Expert insights on Port Trends were presented at the 11th international Intermodal Conference in Port Elizabeth, South Africa in November 2013.

Presented by Siyabulela Mhlaluka, General Manager; Eastern Cape Region, for Transnet Port Terminals, this presentation offers critical insights into the Maritime Logistics industry.

Published in: Business
2 Comments
1 Like
Statistics
Notes
No Downloads
Views
Total views
2,114
On SlideShare
0
From Embeds
0
Number of Embeds
9
Actions
Shares
0
Downloads
62
Comments
2
Likes
1
Embeds 0
No embeds

No notes for slide

South African Port Trends and Current Developments

  1. 1. TRANSNET PORT TERMINALS - South African port trends and current developments in the industry Siya Mhlaluka GM: EC Operations 22 November 2013
  2. 2. TABLE OF CONTENTS TRANSNET SOC LTD INTRA REGIONAL TRADE INDUSTRY TRENDS PORT DEVELOPMENT FRAMEWORK TPT STRATEGIC RESPONSE PAGE 2
  3. 3. TRANSNET STATE OWNED COMPANY LTD - OPERATIONAL DIVISIONS Transnet National Ports Authority (TNPA) • • Transnet Port Terminals (TPT) 8 Commercial ports along 2 943km of coastline • Revenue R8.4bn • 16 Cargo Terminals operating across 7 SA ports Support TFR for rolling stock and TPT for lifting equipment maintenance • 20 500 km of railway track • 182 million tons of freight • Revenue 11.2 bn • • Assets R7.6 bn General freight & 2 heavy haul export lines • 12 570 employees • Revenue 27.6 bn • Assets R61.3 bn • 26 850 employees • Assets R60.6 bn • Assets R12.3 bn • 3 420 employees • 6 210 employees • Support Transnet Pipelines (TPL) Transnet Freight Rail (TFR) Transnet Engineering (TE) Revenue 7 bn • Pipelines Rail Ports Capital Projects Transnet Foundation Property Schools 18 billion litres of petroleum products and gas through 3 000 km of pipelines, mainly to Gauteng • Assets R19.3 bn • R300 billion of capital investments over 7 years • CSI in Education, Health, Sport, Arts & Agriculture • Property Management • Transnet Schools Revenue 2.1 bn • • 630 employees PAGE 33
  4. 4. TRANSNET PORT TERMINALS #1 Terminal Operator in Africa Company 2011 Total Throughput ‘000 TEU 2011 Equity Throughput (‘000 TEU) Equity TEU as % of Regional Throughput 1 Transnet Port Terminals 4,403 4,403 18.07% 2 APM Terminals 7,640 4,236 17.39% 3 Bolloré Africa Logistics 3,348 1,671 6.86% 4 DP World 2,094 1,193 4.89% 5 Port Said CCHC 922 922 3.79% 6 Damietta CCHC 809 809 3.32% 7 CMA CGM/Terminal Link 1,218 661 2.71% 8 Cosco Pacific 3,247 649 2.67% 9 Hutchison Port Holdings 949 548 2.25% 10 Alexandria CHC 517 506 2.08% Transnet’s hold on the top ranking for terminal owning/operating companies in Africa will make them an ideal partner. Source: Drewry on Africa PAGE 4
  5. 5. TABLE OF CONTENTS TRANSNET SOC LTD INTRA REGIONAL TRADE INDUSTRY TRENDS PORT DEVELOPMENT FRAMEWORK TPT STRATEGIC RESPONSE PAGE 5
  6. 6. 55 AFRICAN COUNTRIES , 38 COUNTRIES WITH PORTS delivering freight reliably Algiers (Algeria) Cotonou (Benin) Lagos Abidjan Tema, (Nigeria) Douala (Côte d'Ivoire)Takoradi (Cameroon) (Ghana) Libreville (Gabon) Pointe Noire Matadi (Congo) Mombasa (Kenya) Dar es Salaam (Tanzania) Luanda (Angola) Lobito (Angola) Tanga (Tanzania) Toamasina (Madagascar) Nacala (Mozambique) Beira (Mozambique) Port Louis (Mauritius) Walvis Bay (Namibia) Maputo (Mozambique) Richards Bay (SA) Durban (SA) Cape Town (SA) East London (SA) Ngqura (SA) Port Elizabeth (SA) PAGE 6
  7. 7. SADC CHALLENGES The SADC region is regarded as the next growth frontier due to its extensive minerals wealth, growth in consumer populations and relatively good infrastructure, road in particular:• Key challenges hinders its growth and trade remain strained; • Poor infrastructure, low density across transport networks, inefficient border processes and fragmented regulatory environments continue to dog it; • Much of rail and port infrastructure was built for resource extraction rather than to facilitate trade; • Landlocked countries within the region require efficient transport links to and from the sea in order to enjoy competitive prices for landed goods and exports to global markets; • Most ports within the region currently operate near capacity and experience delays due to poor integration with other transport modes and slow clearance processes; and • The SADC region must attain the goal of becoming a seamless, cost-effective, fully integrated and internationally competitive region with appropriate and substantial investments in road, rail and ports to secure the future of the region. PAGE
  8. 8. KEY INTERVENTIONS REQUIRED RESPONSE TO CHALLENGES Ports to improve Inter-Regional Trade  Development of SADC ports that connect to the world regions – growing maritime trade  Development of ports that are efficient transhipment hubs connected to rail Terminal and Warehousing facilities  Distribution centres for product to reach markets in the region  Lowering inventory costs Working together  to satisfy customers  to reduce the cost of doing business  to improve regional competitiveness PAGE
  9. 9. TABLE OF CONTENTS TRANSNET SOC LTD INTRA REGIONAL TRADE INDUSTRY TRENDS PORT DEVELOPMENT FRAMEWORK TPT STRATEGIC RESPONSE PAGE 9
  10. 10. GEOGRAPHICAL CONTEXT Challenge & Opportunities Global context Regional context National context • SA’s distance from international markets results in high maritime transport costs • SA well placed to service Southern African and most BRICS shipping trade routes • Opportunity to position SA as global transshipment hub focusing on selected trade routes • SA well positioned to serve African east and west coasts by sea • SA’s rail network provides strategic and common-gauge connectivity to neighbouring SADC countries • Regional partnerships will stimulate and sustain regional growth • Gauteng industrial and mining area remains regional production and consumption hub despite distance from nearest ports • Transnet’s key role is to assist in economic growth through providing appropriate, cost-effective and efficient port, rail and pipeline infrastructure and operations • Continued emphasis on alignment with New Growth Path, management of Carbon footprint, private-sector participation, and job creation 10 Transnet Long-term Planning Framework 2012 PAGE 10
  11. 11. INDUSTRY TRENDS Globalisation Trade Patterns  Increased international freight flows a fundamental component of recent changes in global, regional and local economic transport systems  2007: Industrial and Commercial Bank of China buys 20% stake in Standard Bank (US$5,4 billion) China’s largest-ever foreign investment  Evidence of recession in small reduction in freight tonnage handled  Some evidence of recovery from the debilitating effects of the past few difficult years (from an economic and trade point of view  2009: China-South Africa trade reaches $17,9 billion - China becomes South Africa’s largest trading partner  2010: India-South Africa trade reaches US$11,1 billion increases to US$15 billion by 2015  2014: 26 African countries create a US$1 trillion Southern/Eastern/Ce ntral African free trade area Road/Rail  Road/rail tonnage split almost static  Only profitable rail infrastructure being investing in - large components, notably rural branch lines, not used and becoming increasingly dilapidated  Worldwide trend toward road reversing as rail becomes more competitive as a sustainable transportation mode  Single wagon business being replaced by hub-tohub  Intermodal solutions becoming increasingly important (especially in manufacturing sector) Ports  Worldwide trend towards greater specialisation, centralisation, economies of scale, larger vessels and larger parcel sizes  Current upward trend in average size of container-carriers (40 000 DWT) and bulkers (65 000 DWT)  Growing international over-ocean trade to 11 billion tones pa by 2020 at 3% pa yearon-year growth rate Sustainability  Supply-chains used to develop and sustain competitive advantage  Increasing pressure to transform logistics to meet “greening” the requirements  Impact of logistics on climate change more topical because of realisation of immediacy and magnitude of global warming  International shipbuilding peaked in 2010 at 96 million tons (previous peak in 1975 at 36 million tons) PAGE 11
  12. 12. TRENDS IN THE SHIPPING INDUSTRY - 10 New 18,000 TEU ships ordered by Maersk Source: Nick Souza Photography Marine Traffic PAGE 12
  13. 13. VESSEL SIZES 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 one train, the train would be more than 70 km long. Generation 1st Early Containership Fully Cellular 2nd - Panamax Panamax Max 3rd Post-Panamax Post Panamax Plus 4th New Panamax 5th Post New Panamax Tripple E Source: Geography of Transport Systems Years Produced 1956-1970 1970-1980 1980-1985 1985-1987 1988-1999 2000-2003 2003-2007 2006-2012 2013 + Capacity (TEUs) <1000 1000-2499 2500-3499 3500-4499 4500-5999 6000-6999 7000-12999 13000-15999 18000 TEU’s Length Draft (m) (m) 137-200 9 200-225 10 250-290 11-12 275-294 12.5-13 295-320 13-14 320-340 14-14.5 340-350 14.5-15.2 350-400 15.5 400-440 16 PAGE 13
  14. 14. SOUTHERN HUB FOR WORLD SHIPPING ROUTES 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 Shortest Trade Route between Shangai and Santos is via South Africa 11,270nm = 22 days @ 21 knots via Panama Canal13,130nm = 26 days + transit fee via Suez Canal 13,590nm = 27 days + transit fee PAGE 14
  15. 15. GREATER COLLABORATION (RATHER THAN COMPETITION) NEEDED BETWEEN AFRICAN PORTS Algiers (Algeria) Port Said (Egypt) Dakar (Senegal) Monrovia (Liberia) Lome (Togo) Cotonou (Benin) Lagos Abidjan Tema, (Nigeria) (Côte d'Ivoire)Takoradi Douala (Ghana) (Cameroon) Libreville (Gabon) Mombasa (Kenya) Dar es Salaam (Tanzania) Tanga (Tanzania) Pointe Noire Matadi (Congo) Luanda (Angola) Lobito (Angola) Nacala (Mozambique) Beira (Mozambique) Maputo (Mozambique) Walvis Bay (Namibia) Richards Bay (SA) Toamasina (Madagascar) Port Louis (Mauritius) Durban (SA) Cape Town (SA) Source: Team analysis East London (SA) Ngqura (SA) Port Elizabeth (SA) 15 PAGE 15
  16. 16. TABLE OF CONTENTS TRANSNET SOC LTD INTRA REGIONAL TRADE INDUSTRY TRENDS PORT DEVELOPMENT FRAMEWORK TPT STRATEGIC RESPONSE PAGE 16
  17. 17. TRANSNET PORT TERMINALS An integrated system of complementary regional ports and rail corridors CONTAINER TERMINAL DRY BULK TERMINAL MULTI PURPOSE TERMINAL AUTOMOTIVE TERMINAL Richards Bay Durban Saldanha Bay East London Ngqura Cape Town Port Elizabeth PAGE 17
  18. 18. PORT OF DURBAN : AT A GLANCE PAGE
  19. 19. DURBAN CONTAINER TERMINALS : EQUIPMENT & INFRASTRUCTURE UPGRADE PAGE 19
  20. 20. DURBAN MPT TERMINALS – POINT RORO PAGE 20
  21. 21. DURBAN MPT TERMINALS – POINT RORO DURBAN MPT TERMINALS – MAYDON WHARF, AGRI PAGE
  22. 22. DURBAN EXPANSION PLANS FOR DURBAN FUTURE MPT TERMINALS – POINT RORO PORTDurban International Airport (DIA) Site - Ex OF NGQURA Port of Durban Mondi Sapref Refinery Isipingo Old Durban Airport Umlazi N2 Freeway Toyota Factory PAGE 22
  23. 23. FUTURE MPT TERMINALS – POINT RORO DURBAN PLANS FOR DURBAN PORT OF NGQURA the new Dig-Out Port at ex-DIA Site - Artist’s View of Port of Durban New Dig-Out Port Breakwater and Entrance Channel Liquid Bulk Terminal Container Terminals Automotive Terminal PAGE 23
  24. 24. DURBAN MPT RICHARDS BAY TERMINALS – POINT RORO RICHARDS BAY TERMINALS PAGE 24
  25. 25. RICHARDS BAY DRY BULK TERMINALS : EXPANSION PAGE 25
  26. 26. PORT OF EAST LONDON : AUTOMOTIVE BACKBONE PAGE 26
  27. 27. DURBAN MPT TERMINALS – POINT RORO PORT ELIZABETH : UPGRADE AND EXPANSION PORT ELIZABETH PAGE 27
  28. 28. DURBAN MPT TERMINALS – POINT RORO PORT NGQURA : CONTAINER TERMINAL EXPANSION PORT OF OF NGQURA PAGE 28
  29. 29. NGQURA EXPANSION PLANS MDS - PORT CONTAINER TERMINAL - EVOLUTION Port of NgquraOVER 10 YEARS AFTER: 2010 Ngqura Container Terminal BEFORE: Coega River mouth Nov-2002 current: 2013 Ngqura Container Terminal Futuristic Expansion Options PAGE
  30. 30. PORT OF CAPE TOWN : EXPANSION PROJECT PAGE 30
  31. 31. PORT OF SALDHANA : EXPANSION OPPORTUNITIES PAGE 31
  32. 32. TABLE OF CONTENTS TRANSNET SOC LTD INTRA REGIONAL TRADE INDUSTRY TRENDS PORT DEVELOPMENT FRAMEWORK TPT STRATEGIC RESPONSE PAGE 32
  33. 33. TPT NEW STRATEGIC DIRECTION Local Operations Global Operations Defending and growing the Home Turf Integration into the Supply Expanding the Horizon Chain Innovative Value Adding Services PAGE 33
  34. 34. TPT’s AFRICA STRATEGY IS RESPONSE TO : “THE AU HAS IDENTIFIED 14 CORRIDORS FOR DEVELOPMENT” 2 3 4 5 6 1 Kenitra-Casablanca Corridor 2 Greater Cairo Region 3 The Dakar-Touba corridor (Touba-Mbackѐ) 4 The Greater Ibadan-Lagos-Accra (GILA) urban corridor 5 The great Haoussa-Yoruba-Anshanti city triangle (GHAYA-CT) 6 The Emerging Luanda-N’Djamena corridor 7 The Kampala-Entebbe corridor 8 Nairobi metropolitan region 9 Walvis Bay corridor 10 North South corridor (Cape Town-Johannesburg-Harare-LusakaDar es Salaam) 11 The Maputo-Gauteng development corridor 12 Durban development corridor 8 6 7 6 10 13 9 11 14 12 13 Beira corridor 14 Maputo-Limpopo corridor Source:E&Y Report – Time for Africa 34 PAGE 34
  35. 35. TPT AFRICA STRATEGY GROWTH DRIVEN BY GDP Southern Africa Economic Outlook 2014 2015 Angola 8.2 7.8 7.01 5.6 5.5 4.3 DRC 8.2 9.4 20.7 Lesotho 3.9 3.5 3.5 Madagascar 3 4 3.9 Malawi 5.5 6.1 6.5 Mauritius 3.8 4.2 4.7 Mozambique 8.5 8 8 Namibia 4.2 4.3 4.3 South Africa 2.8 3.5 3.4 Tanzania = Rapid growth areas 2013 Botswana Source: World Bank Report Country 6.9 7 7.04 Zambia 7.5 7.8 7.7 Zimbabwe 5 5.7 5.4PAGE
  36. 36. ENABLING ENVIRONMENT REGIONAL INTEGRATION Political Stability and Will Policy & Legislation Infrastructure Development Southern African countries working together for regional growth and development Funding Framework (Local and international ventures) Sustainable Economic Growth Skills Development Railway , Ports & Terminal Infrastructure require deliberate intervention PAGE
  37. 37. Our President was quite clear on this when he said in 2011: "Regional and continental infrastructure development is of fundamental importance to the realisation of Africa IS economic growth and development imperatives. As regional leaders, we carry a particular responsibility to serve as champions in driving industrial and infrastructure development both at the regional and continental levels."

×