PRESENTATION BY FREIGHTDYNAMICS TO NATIONAL GOVERNMENT 04 April 2001

FORMAT  Background  Organizational structure  Vision  Mission  The promise  Nature and scope of business  Strategic direction  Size of business Financials People Markets  Challenges for 2001/2002  Transformation  Conclusion  Questions

BACKGROUND - An evaluation of Transnet’s road freight transport capabilities was conducted to determine an optimal positioning of these activities. - The entities evaluated were Autonet Freight Spoornet Cartage Portnet RTS - Key findings were - Duplication and overlap in management, structures and responsibilities - The above resulted in: - Internal competition and friction - Poor communication; inefficient business processes, lack of performance measurement and accountability - Replication of maintenance, administrative, operational facilities and services - Lack of focus and strategic direction

- The decision was to consolidate the three entities and create a focused and professional road transport and logistics business within Transnet. - This would position Freightdynamics, in size, as one of the top four transport companies in South Africa. BACKGROUND (Continued)

ORGANISATION STRUCTURE FREIGHTDYNAMICS CORPORATE FREIGHTCONTAINERS

VISION Freightdynamics is a world class road freight transport and related services business, committed to creating value for all our stakeholders

MISSION Through leveraging our core competence in transport and logistics, we will deliver solutions that give our customers the competitive advantage.

THE PROMISE To deliver transport solutions that give our customers a competitive edge

NATURE AND SCOPE OF BUSINESS Freightdynamics is being recognized as a professional road freight transport company. Our services cover a wide range of transportation and related activities. Our competitive edge lies in our well established infrastructure country wide and in the wide range of services which we offer. We are committed to finding transport solutions for our customers which are efficient and cost effective, whilst profitable to ourselves. We see ourselves where necessary, assisting Transnet as the flexible link in a seamless delivery service to the customer. Our target market is companies throughout Southern Africa, with an emphasis on volume contracts and long term relationships. Our status will rank with the largest road freight haulers in Southern Africa.

STRATEGIC DIRECTION Create a financially sound and sustainable business which adds value to Transnet. Identify and create sustainable competitive advantage. Develop and retain the most competent workforce in the industry. Create a business oriented culture. Promote and facilitate Employment Equity and Black Economic Empowerment. Support and facilitate the government’s transformation, restructuring and economic growth policy. Consider a Black Empowerment shareholder for Freightdynamics.

SIZE OF THE BUSINESS Financials: 2001/2 2002/3 2003/4 Turnover Net Profit/(Loss) (34) (3) 23 Capital Expenditure Capital Employed

SIZE OF THE BUSINESS ( Continued ) People: Corporate office:26 Freight:801 Containers:1139 Total:1966 LABOUR REPRESENTAVITY: SATAWU:52% SALSTAFF:16% UTATU : 22% Non-unionized:10% Transnet’s policy threshold is 15% representation for recognition Freightdynamics will therefore recognize SATAWU, SALSTAF and UTATU.

SIZE OF THE BUSINESS ( Continued ) Markets: Fuel Industries Cement Industry Fast Moving Consumer Goods Beer Industry Refrigerated Market Overnight Deliveries General Freight Container Shipments

CHALLENGES 2001/2 Growth target of R168m ( 26% ) Capital investment of R127m Improving profitability Customer service Containing costs Re-assessing job and people profiles Increasing asset utilization Integration of IT systems Embarking upon a quality system Continue with transformation Improve governance Introducing HIV/AIDS programme Introduction of performance management system Improving BEE spend Implementation of risk management programme Cement relationships with unions

TRANSFORMATION Includes: - To create a management leadership style that leads by example and fully supports equal opportunities within the organization. - The new business necessitates a different structure, defining of jobs and roles, systems and culture. - Improve overall operating efficiencies. - The commitment to employment equity. - The commitment to develop and support BEE and form partnerships. - To adapt the Protocol on Corporate Governance. - To set the norm of “Zero Tolerance” for fraud. - To train and develop our employees. - To implement an effective performance management scheme. - To implement the Balance Scorecard. - To implement an appropriate risk management program. - To increase the value of the business.

TRANSFORMATION Consolidate Business Merging cultures Arresting Losses Social Responsibilities Performance Criteria Growth Profitable Transformed World Class Privatization Market Growth Capital Investment Customer Service People Alignment Productivity Improvement Transformation People Development

CONCLUSION Freightdynamics is a young company which has been faced with many challenges during the past year. Much of the focus has been on internal matters in order to develop a sound foundation on which to build this business. The focus for this year is primarily directed at growth and capital investment. Growth has been carefully calculated and though we are targeting huge growth, the management team of Freightdynamics is convinced that given the current marketing opportunities, this goal is attainable. In order to improve our visible image in the market place as well as to achieve the envisaged operational efficiencies and customer satisfaction, it is imperative that we continue with the injection of new vehicles into our fleet. In essence it is of utmost importance that Freightdynamics produces results this year.