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.

1. TRANSNET PORT TERMINALS
- South African port trends and current developments in the industry
Siya Mhlaluka GM: EC Operations
22 November 2013

2. TABLE OF CONTENTS
TRANSNET SOC LTD
INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
TPT STRATEGIC RESPONSE
PAGE 2

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. 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. TABLE OF CONTENTS
TRANSNET SOC LTD
INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
TPT STRATEGIC RESPONSE
PAGE 5

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. 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. 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. TABLE OF CONTENTS
TRANSNET SOC LTD
INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
TPT STRATEGIC RESPONSE
PAGE 9

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. 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. TRENDS IN THE SHIPPING INDUSTRY
- 10 New 18,000 TEU ships ordered by Maersk
Source: Nick Souza Photography Marine Traffic
PAGE
12

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. 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. 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. TABLE OF CONTENTS
TRANSNET SOC LTD
INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
TPT STRATEGIC RESPONSE
PAGE 16

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. PORT OF DURBAN : AT A GLANCE
PAGE

19. DURBAN CONTAINER TERMINALS : EQUIPMENT &
INFRASTRUCTURE UPGRADE
PAGE 19

20. DURBAN MPT TERMINALS – POINT RORO
PAGE 20

21. DURBAN MPT TERMINALS – POINT RORO
DURBAN MPT TERMINALS – MAYDON WHARF, AGRI
PAGE

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. 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. DURBAN MPT
RICHARDS BAY TERMINALS – POINT RORO
RICHARDS BAY TERMINALS
PAGE 24

25. RICHARDS BAY DRY BULK TERMINALS : EXPANSION
PAGE 25

26. PORT OF EAST LONDON : AUTOMOTIVE BACKBONE
PAGE 26

27. DURBAN MPT TERMINALS – POINT RORO
PORT ELIZABETH : UPGRADE AND EXPANSION
PORT ELIZABETH
PAGE 27

28. DURBAN MPT TERMINALS – POINT RORO
PORT NGQURA : CONTAINER TERMINAL EXPANSION
PORT OF OF NGQURA
PAGE 28

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. PORT OF CAPE TOWN : EXPANSION PROJECT
PAGE 30

31. PORT OF SALDHANA : EXPANSION OPPORTUNITIES
PAGE 31

32. TABLE OF CONTENTS
TRANSNET SOC LTD
INTRA REGIONAL TRADE
INDUSTRY TRENDS
PORT DEVELOPMENT FRAMEWORK
TPT STRATEGIC RESPONSE
PAGE 32

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. 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. 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. 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. 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."