1. STRATEGIC VACANCIES AND AND PERFORMANCE MANAGEMENT 19 MARCH 2010

2. CURRENT STRATEGIC VACANCIES
Transnet regards strategic management to be the Group Exco and the Divisional
Executive teams.
The table below reflects the current vacancies on strategic management level and the period that the
position has been vacant:
Job Title
Operating Division
Date from which vacancy exists
Status
Group Chief Executive
Group
1 March 2009
In process of filling
Chief Operating Officer
1 April 2009
Filling of vacancy placed on hold
General Manager: Strategic Supply Mngmnt
1 June 2009
General Manager: RME
TCP
19 August 2009
Internal candidate appointed – 1 April 2010
Chief Financial Officer
7 August 2009
Internal candidate appointed – 1 October 2009
General Manager: Risk Management
1 September 2009
TPT
30 September 2009
Internal promotion –
1 October 2009
General Manager – Reengineering and Strategy
TFR
General Manager: Human Capital
TRE
1 February 2010
Internally advertised

3. STRATEGIC MANAGEMENT – DEMOGRAPHICS
The table below depicts a summary of the current demographics of the strategic management team (Group Exco and Divisional Exco teams) in terms of race and gender
Ethnic Group
Female
Male
Total No %
African 19
45.2% 23
55% 42
41%
Indian 4
19.0% 17
81% 21
21%
Coloured 2
33.3%
67% 6 6%
White 11 22 33
32% 36
35.3% 66
64.7%
102
Percentage
The table below depicts a summary of the appointments as per race and gender for the total period April 2006 to 2 February 2010.
Race
Male
Female
Total
% of Appointments
African 15 17 32
45.7%
Indian 6 4 10
14.3%
White 7 22
31.4%
Coloured 5 1
8.6%
TOTAL 41 29 70
100%

4. PROCESS FOR FILLING OF STRATEGIC MANAGEMENT VACANCIES
The objective is to fill the vacant position with the most suitable candidate available,
therefore the possible candidates are sourced via the following channels (often in
parallel):
Internal adverts
External Advertisement
Nominations from Talent pools
Nominations from Recruitment Agencies (Head hunting)
Recruitment and Selection Process Includes:
Short listing
Interviews
Psychometric Assessments
Reference Checks
The filling of executive positions take up to an average of six months

5. TRANSNET’S RESPONSE TO SHAREHOLDER’S COMPACT OBJECTIVES
2010/11 Shareholder Compact Objectives
Focus Areas
Volume and Revenue Growth
Financial Value Creation
Operational efficiency
Infrastructure investment
Development objectives
SHEQ
Volumes
Revenue
Return on investment
Strong balance sheet
Rail, Ports & Pipelines
Rail, Ports and Pipelines
Skills Development/ Other
Safety and Compliance
Transnet Corporate Plan targets 2010/11
Average 10.3% growth
Group: 13.8%
(mainly from volumes)
ROA from 6.5% to 7.4% (8.0% over 2y)
Gearing: 45.3%
Cash Interest Cover: times
Average 8.4% improvement
Group: R22.8bn
(R93.4bn over
5 years)
HR Training: 3-4% of personnel cost
Reduce DIFR: 9%
Detailed plans/targets
GFB: 15%
Domestic coal: 31%
Manganese: 29%
Containers on Rail: 8%
Export Iron Ore: 11%
Export Coal: 9%
Maritime Containers: 5%
Petroleum: 2%
Operating expenses <62% of revenue (<60% over 2y)
EBITDA from R12.8bn to R15.1bn
EBITDA margin from 36.8% to 38.3%
Improvements
Wagon turnaround: 10%
Loco efficiency: 27%
Deviation from train schedule: 13%
GCM/h: 15%
STAT Durban: 6%
Production interruptions: 29%
Key projects:
Export coal (81mtpa)
110 Dual voltage locos
50EMD locos
Ore line (47mtpa/60mtpa)
Various Port and Terminal expansion projects (incl. CTCT/ DCT/RBay)
NMPP (8.7billion litres)
Employment Equity >70%
CSDP
Procurement (BBBEE)
Branch lines
Africa strategy
Reduce Cost of Losses by 34%
Environ-
ment compliance audits
Reduce employee and public fatalities
Required Outcome: Improved customer service delivery and sufficient capacity to promote
economic growth

6. Rewards & Recognition Long-term Planning Performance Tracking
STRATEGY IMPLEMENTATION THROUGH ENTERPRISE PERFORMANCE MANAGEMENT
JOH-TRX SA-P1
- Reward employees for good
performance
- Short-term incentive scheme
- Long-term incentive scheme
- Gain-share scheme
- Strategic
Performance
Objectives
(SPOs)
- Review of strategic objectives
- Market / competitor analysis
- Capital planning
- Top-down target setting
- 10-year horizon
- Focus on next 5
years
- Quantum Leap
Blueprint
Next step is to finalise SPOs and align incentive schemes to objectives
Commence with implementation of corporate plans and initiatives
Continuous monitoring , feedback and response to poor performance areas
Rewards & Recognition
Long-term Planning
Enterprise Performance Management
- Monitoring
and reporting
performance
- Assessing root
cause and develop
action plans
Adjusting business to
external environment
Reporting to DPE/Board/Exco/
Commercial/Corridors
- Weekly/Monthly Dynamic Reports
- Exco workbook / Dashboards
Performance Tracking
Budgets & Plans
- Allocating
resources
(people, finance)
to achieve strategy
- Bottom-up, driver
based budgeting
- Linking budgets to operational plans
- Annual Corporate Plan (PFMA) 6 6 6 6

7. The Performance Management process
PHASE 1: PLANNING FOR PERFORMANCE
MARCH-APRIL
What is the employee expected to do this year?
Agree strategic objectives
Agree key performance areas
Set performance standards
Compile the performance scorecard
Quality assurance of scorecards
PHASE 2: COACHING AND PERFORMANCE REVIEW
ONGOING
How well is the employee doing throughout the year?
Continuous feedback on performance objectives
Review key performance areas
Review the training and development plan
PHASE 4: REWARDING PERFORMANCE
APRIL - MAY
What recognition will the employee get for outstanding performance?
Quality assurance of assessment process
Audit of financial results
Business moderation
Individual moderation
Implement reward
Communicate reward
Audit of reward payments
PHASE 3: FINAL REVIEW AND ASSESSMENT
SEPTEMBER-OCTOBER (midyear)
MARCH (end of year)
How well has the employee done?
Self assessment
Manager assessment of employee
Consensus assessment of performance
Record the assessment results
Develop individual learning plan (ILP)