EASTERN CAPE REGION: STRATEGIC CUSTOMER FORUM TNPA OPERATIONS PERFORMANCE STANDARDS 04 November 2015

CONTENT ROLE OF OPERATIONS IN TNPA PORT OPERATIONS FRAMEWORK AND PROCESSES STAKEHOLDER EXPECTATION JOC ALIGNMENT WITH PORT OPERATIONS PERFORMANCE AND EFFICIENCIES JOC INFORMATION REQUIREMENT AND PROGRESS 2 -AAA123-20090304-

ROLE OF PORT OPERATIONS The attainment of the organisation’s strategic business objectives with specific emphasis on providing effective and efficient, safe, secured and affordable port services Ensure integration of Marine services, Ports services, Terminals operations, Road and Rail services, to ensure seamless and efficient port total supply chain system.

PORT OPERATIONS FRAMEWORK Public access Marine Services Stakeholders Ports Regulator Communities Business Chamber Local Government Provincial Govt Suppliers Performance: Planning Execution Asset management Value extraction Business Process Optimisation Performance: Planned Controlled Safe Risk elements Operational Engagement: Alignment and participation in Port activity OPERATIONS Tactical Plan Execution Plan Business Process Optimisation Port Services Stevedoring Bunkering Diving Ship repairers Fire Surveying Pest control Waste removal Vessel maintenance Infrastructure / Land Performance: Landside norms Good order Technical norms met Value extraction Business Process Optimisation Oversight: Compliance Ops planning Road Rail (Oversight) Terminal efficiency Capacity exploitation Business Process Optimisation Ops SHEQ Systemic logistics Leases Maintenance Performance: Accommodation Joint planning Integrated operations CI Security / Port of Entry ISPS Customs SAPS BCOCC DHA Health Agriculture Terminals Performance: Efficient governance / admin TNPA Admin DOA, Port EXCO, OPCO, RISKCO, CAPIC, PAC, LAC, LBC, PCC, BCP, Shopfloor 4 -AAA123-20090304-

STAKEHOLDER EXPECTATIONS Shipping lines Cargo volumes, Compliance with schedules, High productivity levels, Flexibility, Reduced operating costs, Market growth Terminals Cargo volumes, Terminal productivity, Performance of service providers, Reduced operating cost, Market growth Cargo Owners Compliance with dwell times and lead times, Storage, Cargo handling productivity, No cargo degradation or damage, Reduced costs Stakeholders (Service providers and Suppliers Economic growth, Job creation, Access to the port industry, People development, Minimised externalities, Sustainability Marine Services Targeted volumes, Asset utilisation, Vessel handling productivity levels, Demand coverage, Competency, Safety, Sustainability Port Authority Cargo and vessel volumes, Targeted levels of capacity utilisation, High productivity levels, Quick turnaround of vessels, Smooth logistics flows, Market growth 5

END TO END VISIBILITY OF THE PORT VALUE CHAIN Integrating the Logistics System of South Africa… Reduce the anchorage waiting time. Improve vessel planning (14 day view, 7 day view, 48 hours forward looking plan) Berth planning, ensure berth availability (provide berth on arrival) Cargo availability at the port as influenced by road carriers (trucks) Land side Stacking space, correct stacking and stowing of cargo Water side Intermodal Anchorage Berth Apron Terminal Cargo availability at the port as influenced by rail Berth occupancy rate. Terminal and Crane working time per vessel CARGO FLOWS There is a need to integrate Marine, Port, Terminals, Road and Rail services, to ensure seamless and efficient supply chain system

JOINT OPERATIONS CENTRES Rail Operator Performance Standards (ROPS) Hauler Operator Performance Standard (HOPS) Marine Operator Performance Standards (MOPS) Terminal Operator Performance Standards (TOPS) 7

JOINT OPERATIONS CENTRES GOALS The Operations Centre seeks to enable business performance. It is designed to provide the following: Enable Port Management decision making process Provide the Integrated Port supply chain visibility Performance visibility Transparency of performance through processes Ensure Accountability in port service delivery through performance oversight Drive Port Efficiencies Provide single point of entry for information Timeous response to deviations, planned and unplanned Improve the coordination of incident recovery process Deliver on the MDS and Shareholder Compact deliverables Implement Port Act Improve Customer services through CRM interface Improve the cost of doing business (for Customers) with the port. 8

KEY INTERFACES TO ENABLE THE PROCESSES OF THE JOINT OPERATIONS CENTRE Marine services Marine services as part of the port supply chain will interface with the Joint Ops Centre on marine planning (including berth planning) and performance Terminal Operators Interface with Terminal Operators for the Terminal Operations services Port Ops Centre Contact Centre (CRM) The CRM as a front office to commercial customers (through a telephony solution) supported by Joint Ops Centre as a back office to CRM Rail (TFR) Interface with Transnet Freight Rail for port rail services Port Security Security enables port operations. A security re in the Joint Ops Centre to take charge of the security related matters Other external operators/stakeholders Interface points to be identified as we transit to a Business Centre 9

JOINT OPERATIONS CENTRE LAYOUT PORT OPERATIONS CENTRE LAYOUT 10

PORTS OPERATIONS PERFORMANCE IMPROVEMENT SYSTEM Implementing Port Operations Performance Standards - POPS Key Performance Measures TOPS KEY INFLUENCERS OF THE PORT SERVICES VALUE CHAIN PERFORMANCE Berth productivity Truck turnaround time Truck waiting time Rail turnaround time Legislative Requirements National Ports Act Directives INFRASTRUCTURE MOPS Performance against set targets Resource availability Marine service levels MARINE OPERATIONS TOPS Volume throughput Truck turnaround time Truck waiting time Rail turnaround time Ship working hour TERMINAL OPERATORS ROPS Truck turnaround time Truck waiting time Rail turnaround time LANDSIDE INTERMODAL Collaboration/ Consultation Port Stakeholders NPCC PCC subcommittees Shareholders Compact HOPS Adherence to administration requirements and clearance timeframes PORT SERVICES

PORT OPERATING STANDARDS JOINT OPERATIONS CENTRE INTERFACE WITH OPERATIONS PERFORMANCE STANDARDS OPERATIONS CENTRE PORT OPERATING STANDARDS PLANNING MONITORING REPORTING - Planned Terminal Work e.g. SWH, Train Loading Time etc. - Planned Maintenance - Actual Terminal Productivity - Capacity Utilization - - Performance Reporting, Daily, Weekly and Monthly - Capacity Utilization TOPS - Planned marine movement e.g. Docking, Sailing or Shifting - Planned Maintenance - Actual Marine Productivity - Resource Utilization - Performance Reporting, Daily, Weekly and Monthly - Resource Utilization MOPS - Integrated Train Plan e.g. Trains to/from the Ports - Planned Maintenance - Actual Trains Movement - Actual Rail efficiency - Performance Reporting, Daily, Weekly and Monthly - Resource Utilization - ., ROPS - Trucking Plan e.g. Trucks to/from the Ports - Actual Trucks Movement - Actual Road efficiency - Performance Reporting, Daily, Weekly and Monthly - Resource Utilization HOPS

INTEGRATED PORT PLAN DEVELOPED PLANNING DATA FLOW CAPEX Reports Logbook Extract Maintenance Plans INTEGRATED PORT PLAN DEVELOPED Daily Weekly Monthly

(AS PER INTEGRATED PLAN) MONITORING DATA FLOW VALUE CHAIN AREA ITEMS TO BE MONITORED (AS PER INTEGRATED PLAN) Train ATA/ATD Actual Maintenance Actual Trucks Arrival rate per hour Volumes Discharged Vessel ATA/ATD Marine Resource Plan Actual Start/Completion Time – Vessel Loading and Offloading Actual Start/Completion Time – Train Loading and Offloading Yard Capacity Actuals Port Rail Track Maintenance Berths, Roads maintenance Terminal Maintenance

DEVIATION MANAGEMENT Some of the deviations which can occur in the port system and various ways in which the Joint Operations Centre will respond is outlined below…. SCENARIO OPS CENTER INTERVENTION ROLE RESPONSIBLE NO SYNERGY ON MAINTENANCE PLANS Facilitate integrated maintenance within the port value chain PLANNING COORDINATOR HIGH TRUCKS TRAFFIC CONGESTION EXPECTED Ability to foresee traffic congestion and provide reaction plans ANALYSIS OF SUB PLANS Review Sub-plans to ensure seamless integration to avoid bloating the port VESSEL DELAY Advise the next port of call on the delay PERFORMANCE MONITOR Through Port Control, Advise the incoming vessels Advise the trucks and incoming trains LOAD NOT READY FROM RAIL OR ROAD Through Port Control, Advise the incoming vessel that the load is not yet ready INCIDENTS/ACCIDENTS OCCURRANCE Facilitate the activation of various stakeholders as per incident management process UNDER-UTILIZATION OF CAPACITY Advise the Capacity Enablement team on the actual capacity usage REPORTING ANALYST NO INFO ON PERFORMANCE STANDARDS FROM RESPONSIBLE PEOPLE Provide information on performance against TOPS, MOPS, ROPS REQUEST FOR PERFORMANCE REPORTS Provide On-Time reports and management of Incidents

PROGRESS ON PERFORMANCE STANDARD Terminal Operator Performance Standards (TOPS) is a key element in improving port efficiency. The two past years (TOPS 1 & 2) and current Year 3 TOPS have enabled the SA ports system to establish an environment to address the efficiency of Terminal Operators in a consultative and focused manner Performance standards set have been progressively increased to better reflect expected performance relative to capacity. Achieved performance levels have likewise improved overall. Terminal Operators and the TNPA are in an improved position to address required levels of performance as a result of a maturing operational relationship, capacity analysis and a quantitative approach (monitoring and trend). TOPS is supplemented by MOPS to address the marine component of ship turnaround time. The rail (ROPS) and road (HOPS) efficiency measures are under consideration to complete the landside intermodal component of the performance model. TOPS will focus upon substantive achievement of targets against capacity followed by TOPS against benchmarked performance going forward.

JOINT OPERATIONS CENTRE PROGRAMME SUMMARY x Delayed √ Completed DELIVERABLE HQ RCB DBN ELS PLZ MSB CPT SLD UPDATE HARDWARE x √ X WIP DBN – The Pilot Phase ongoing. ELS/RCB/SLD – Construction complete. Training has commenced in ELS. RCB & SLD to follow. HQ – Construction ongoing. CT-Procurement of construction ongoing PE – Construction has commenced Toilet Facilities to be made PWD friendly. MSB – Awaiting approval of funds from CAPIC to complete the Ops Centre. NGQ – proposal to remove the scope from the project discussed accepted. FURNITURE FACILITIES CIVILS AND ELECTRICAL KEY OPERATIONAL READINESS DELIVERABLES READINESS ITEM DETAIL APPLICATIONS Development of the IT Solution remains a concern for the Ops Centre “GO LIVE” initiative. Sharepoint solution is still lagging behind on the project. TRAINING DBN and PLZ and ELS already commenced with training. Training budget is a concern as this cannot be included in the project budget. HUMAN CAPACITY Recruitment and selection process is currently underway at all Ports and HQ. PROCESSES Processes have been developed for sign off by the Ports and Sponsor. Interface engagement with TFR and TPT is ongoing. TNPA Operations Report for the period July 2015 14 17