“Development in the Sustainable Growth” Port of Ngqura “Development in the Sustainable Growth” Input to MEC Somyo’s Policy Speech March 2015

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Contents Port Overview Port Game Plan Port Strategy Port Development Framework Plan CAPEX Programme Market Demand Strategy & Concluding Thoughts 3

Transnet National Ports Authority Port of Ngqura: Overview Positioned as a Container Transhipment Hub Berths: 7 Length: 2.2 km Capacity of 2.8 Million TEU’S 713 306 TEU’s of cargo in 2013/14 The port is located within proximity of Coega IDZ Average Per month: Trucks 22,425 Cars 14,191 Pedestrians 29,029 Focus on Containers, Manganese and Liquid Bulk Industry Depth of 16 – 18m to accommodate Container Vessels up to 41,000 Official Opening of Port – March 2012 1st Container Vessel – October 2009 R 5.307bn Asset base 206 TNPA employees 4

Transnet National Ports Authority Port of Ngqura: Game Plan “A Landlord Port Authority that manages, controls and administers the South African Port System on behalf of the State” Operations Strategy Strategic Intent Driving Economic Growth and Long Term Sustainability of the Port through optimal use of strategic port infrastructure Marketing Strategy Value Proposition Container Transshipment Hub for Sub-Saharan Africa A geographically well positioned, state of the art port operating within an Industrial Development Zone Port Performance Management Optimal Use of Port Assets Integrated Port Management Systems Safety and Risk Management Driven by a 3 tier strategy Infrastructure Create & Manage Infrastructure capacity ahead of demand Operations Improving port efficiency through increased productivity and operations oversight Integrated Port System To facilitate and integrated logistics chain that will establish the port system as an integrated gateway for trade In support of meeting Shareholder’s objectives of improving operating efficiencies, regional integration and optimising investment in the port system. Port Strategic Focus Areas Transformation in all its Facets New Business Development Stakeholder Engagement Port Authority Oversight Role Strategic Forward Planning Provision of Port Infrastructure Human Capital Management of all its facets

Market Demand Strategy: Tnpa Port of Ngqura Capital Planning and Execution Increase capacity and capability to deliver on the Port of Ngqura R 22 Bn 10 Year Capex plan: Construction and Operationalise Port of Ngqura Services to Logistics Park Area Fencing of Cadastral Boundary Quays & Services for Expansion up Coega River Tank Farm, Berth A100, Port Entrance General Cargo Berth B101 Manganese Project LNG Terminal & Breakwater Additional Tug Automated Mooring system at NCT Research & Development Survey Natural Migration of Rock (Sand Bypass) Simulation of Projects (NCT Extension, Liquid Bulk, Manganese and General Cargo) Coega River Studies Western Side Port Planning Operational effectiveness and productivity IPMS TOPS / MOPS Take a systems view of a port (Ops Centres); Target volumes and customer satisfaction Wind Turbine LNG Manganese Oil Rigs Liquid Bulk New Shipping Routes General Cargo Opportunities Ship Repair IMS Customer Link Safety Financial Sustainability Regulator and Key Stakeholder Engagement Implement Tariff Methodology and Pricing Strategy. Cost Optimization Organisation strategy / readiness Ensure availability of required skills sets to develop internal capability and capacity in order to address competency gaps; Retention of skilled workforce to deliver on prioritized areas and continue to strengthen the development initiatives for core, critical and scarce skills as anchors and growth-enablers. HR strategy Develop an integrated and responsive Human Resources strategy aligned to the MDS requirements thereby ensuring a value-driven and business partnering HR function.

Port Of Ngqura Layout Current Layout Current Layout 2019 Medium Term Layout 2042 Long Term Layout

Port of Ngqura 5 Year CAPEX Programme

Future Capital Projection 5 Year CAPEX Budget

Capital Program 2014/15 – Year 1 Current Projects Name of project Description Progress % Category Automated Mooring System (FEL 4) Mitigate Surge at Container Berth (Pilot D100) 80% Safety Administration Craft Basin (FEL 4) Marine Fleet Jetty and Marine House 5% Capacity Administration Building (FEL 4) New PoN Administration Building 15% Tank Farm (Land & Marine) FEL 3 Relocation of Tank Farm Operations from Port of PE 75% Manganese Project (FEL 3 Complete) Relocation of Manganese Operations from Port of PE Sand Bypass Mandatory compliance 70% Compliance

Capital Program 2015/16 – Year 2 Planned Projects Name of project Description Category Automated Mooring System (FEL 4) Mitigate Surge at Container Berth Safety Administration Craft Basin (FEL 4) Marine Fleet Jetty and Marine House Capacity Administration Building (FEL 4) New PoN Administration Building Tank Farm (Land & Marine) FEL 4 Relocation of Tank Farm Operations from Port of PE Manganese Project (FEL 4) Relocation of Manganese Operations from PoPE Sand Bypass Mandatory compliance Compliance

Capital Program 2016/17 – Year 3 Planned Projects Name of project Description Category Automated Mooring System (FEL 4) Mitigate Surge at Container Berth Safety Administration Craft Basin (FEL 3) Marine Fleet Jetty and Marine House Capacity Administration Building (FEL 4) New PoN Administration Building Fencing of Cadastral boundary Construction of the Cadastral boundary, lights and cameras around the Port for security purposes Tank Farm (Land & Marine) FEL 4 Relocation of Tank Farm Operations from Port of PE Manganese Project (FEL 4) Relocation of Manganese Operations from Port of PE Sand Bypass Mandatory compliance Compliance Plant for Infrastructure Department Plant required by infrastructure for maintenance and to execute minor projects Western Emergency Entrance to the Port Construction of a secondary Port entrance for access to the Port during emergencies. Safety & Security Workshops, offices and facilities for Infrastructure Department Provision of offices, workshops, and facilities to the Infrastructure Department personnel Research & Development Wind Mitigation Study etc Install Scada System for the Port Services Installation of Scada System for the Port Services Maintain

Capital Program 2017/18 – Year 4 Planned Projects Name of project Description Category Automated Mooring System (FEL 4) Mitigate Surge at Container Berth Safety Administration Craft Basin (FEL 3) Marine Fleet Jetty and Marine House Capacity Administration Building (FEL 4) New PoN Administration Building Fencing of Cadastral boundary Construction of the Cadastral boundary, lights and cameras around the Port for security purposes Tank Farm (Land & Marine) FEL 4 Relocation of Tank Farm Operations from Port of PE Manganese Project (FEL 4) Relocation of Manganese Operations from Port of PE Sand Bypass Mandatory compliance Compliance Plant for Infrastructure Department Plant required by infrastructure for maintenance and to execute minor projects Western Emergency Entrance to the Port Construction of a secondary Port entrance for access to the Port during emergencies. Safety & Security Workshops, offices and facilities for Infrastructure Department Provision of offices, workshops, and facilities to the Infrastructure Department personnel Research & Development Wind Mitigation Study etc

Capital Program 2018/19 – Year 5 Planned Projects Name of project Description Category Automated Mooring System (FEL 4) Mitigate Surge at Container Berth Safety Administration Craft Basin (FEL 3) Marine Fleet Jetty and Marine House Capacity Administration Building (FEL 4) New PoN Administration Building Tank Farm (Land & Marine) FEL 3 Relocation of Tank Farm Operations from Port of PE Manganese Project (FEL 3 Complete) Relocation of Manganese Operations from PoPE General Cargo (FEL 3) New General Cargo Berth to accommodate new business from IDZ and Hinterland Sand Bypass Mandatory compliance Compliance Additional 70 Ton Bollard Pull Additional Tug : Increase in cargo handling

Construct Port of Ngqura Capex R130m Scope Quay Walls, Dredging, Breakwaters, Automated Mooring system for container berths Progress Automated Mooring System is on track. Cavotec on site D100 Completion date is 30 April 2015 (Pilot project) Job Creation Direct : 120 Indirect : 90 Supplier Development Locally based sub contractor Automated Mooring System

Operationalise Port of Ngqura Capex R260m Scope Construction of Administration Building Progress WBHO appointed Job Creation Direct : 154 Indirect : 115 Supplier Development 40% local suppliers Administration Building

Operationalise Port of Ngqura Capex R320m Scope Construction of Craft basin Facility and Administration building Marine Progress ACB Marine – contract awarded Basil Read appointed ACB Building – Design phase Job Creation Direct : 256 Indirect : 192 Supplier Development 20% locally based ACB building & Craft Basin Facility

Tank Farm Tank Farm Marine and Landside Capex R2.9bn Scope Construction land side infrastructure and Marine berth Progress Capex ETC Approved Job Creation Direct : 1920 Indirect : 1440 Supplier Development 30% locally based Tank Farm Marine and Landside

Manganese Construct manganese Capex R26.663bn (TFR 18.094bn & TNPA 8.568bn) Scope Construction of Rail, Terminal and Marine superstructure Progress EPCM busy with Design Validation Job Creation Direct : 18600 Indirect : 14000 Supplier Development 40% locally based Construct manganese

Final Port Solution Utilises Existing Berths and Is Scalable The port scope (Take- off point from the Coega river bridge ) 1 3 2 4 5 6 7 N2 Highway Rail Mainline Coega River Rail Bridge Coega River 1 Arrival and departure yard 2 Existing berths C101 and C100 3 Two ship-loaders capable of loading up to two 80,000 DWT Panamax size vessels simultaneously 4 Three stackers and related stockyard conveyors to stack ore on the stockpiles, with provision to add a fourth stacker in future 5 Two reclaimers and related stockyard conveyors to reclaim ore from the stockpiles, with provision to add a third reclaimer in future 6 Four stockyard rows, with provision to add two additional rows in future 7 Dual surge bins at the stockyards to optimize ship loading efficiency

Market Demand Strategy & Concluding Thoughts Port of Ngqura Market Demand Strategy & Concluding Thoughts

Ngqura … … the leading manganese exporter globally MDS Will Enable Growth In Key Commodities And Will Position Nelson Mandela Bay (Sa) as Ngqura … … the leading manganese exporter globally Ngqura … the leading transshipment container hub for sub-Saharan Africa Port of Ngqura … the leading abnormal cargo handling port and Special Oil Rig Repair Port of Ngqura …. ready to accommodate Project Mthombo.. 22

Port of Ngqura - After 23

Thank you.