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

Port of Ngqura“Development in the Sustainable Growth”

Input to MEC Somyo’s Policy SpeechMarch 2015

The content of this presentation is for general information purposes only and should not be construed as creating an expectation of any nature whatsoever regarding the way forward relative to the issues under consideration. Rights are fully reserved not to proceed in respect of the issues under consideration and to alter views expressed. The basis upon which to proceed relative to the subject matter of this presentation, or not to proceed as the case may be, will be developed outside the ambit of this presentation and for this specific purpose the content of this presentation should not be relied upon. Please be guided accordingly.

Disclaimer

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Contents

1. Port Overview

2. Port Game Plan

3. Port Strategy

4. Port Development Framework Plan

5. CAPEX Programme

6. Market Demand Strategy & Concluding Thoughts

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Positioned as a Container

Transhipment Hub

Berths: 7 Length: 2.2 km

Capacity of2.8 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 22,425Cars 14,191Pedestrians 29,029Focus on

Containers, Manganese

and Liquid Bulk Industry

Depth of 16 – 18m to

accommodate Container

Vessels up to 41,000

Official Opening of Port – March

20121st Container Vessel –

October 2009

R 5.307bn Asset base

206 TNPA employees

Transnet National Ports AuthorityPort of Ngqura: Overview

Transnet National Ports AuthorityPort of Ngqura: Game Plan

Driven by a 3 tier strategy

In support of meeting Shareholder’s objectives of improving operating efficiencies, regional integration and optimising investment in the port system.

“A Landlord Port Authority that manages, controls and administers the South African Port System on behalf of the State”

InfrastructureCreate & Manage

Infrastructure capacity ahead of

demand

OperationsImproving 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

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Port Strategic Focus Areas

Transformation in all its FacetsNew Business Development

Stakeholder EngagementPort Authority Oversight Role

Strategic Forward PlanningProvision of Port Infrastructure

Human Capital Management of all its facets

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 ManagementOptimal Use of Port Assets

Integrated Port Management SystemsSafety and Risk Management

Market Demand Strategy:Tnpa Port of Ngqura

Target volumes and customer satisfaction

• Wind Turbine• LNG• Manganese• Oil Rigs• Liquid Bulk• New Shipping Routes• General Cargo

Opportunities• Ship Repair• IMS Customer Link

HR strategy

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.

• Develop an integrated and responsive Human Resources strategy aligned to the MDS requirements thereby ensuring a value-driven and business partnering HR function.

Operational effectiveness and productivity

• IPMS• TOPS / MOPS• Take a systems view of a

port (Ops Centres);

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

Safety

Financial Sustainability

Regulator and Key Stakeholder Engagement

• Implement Tariff Methodology andPricing Strategy.

• Cost Optimization

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Port Of NgquraLayoutCurrent Layout Current Layout 2019

Medium Term Layout 2042 Long Term Layout

Port of Ngqura5 Year CAPEX Programme

Future Capital Projection5 Year CAPEX Budget

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2014/15 2015/16 2016/17 2017/18 2018/19 -

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

1,600.0

1,800.0

136.1

446.8

750.9

1,684.5

1,534.1

Budget

Timeframes

Expe

ndit

ure

Rm

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Capital Program 2014/15 – Year 1 Current Projects

Name of project Description Progress % Category

1. Automated Mooring System (FEL 4)

Mitigate Surge at Container Berth (Pilot D100)

80% Safety

2. Administration Craft Basin (FEL 4)

Marine Fleet Jetty and Marine House 5% Capacity

3. Administration Building (FEL 4)

New PoN Administration Building 15% Capacity

4. Tank Farm (Land & Marine) FEL 3

Relocation of Tank Farm Operations from Port of PE

75% Capacity

5. Manganese Project (FEL 3 Complete)

Relocation of Manganese Operations from Port of PE

75% Capacity

6. Sand Bypass Mandatory compliance 70% Compliance

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Capital Program 2015/16 – Year 2 Planned Projects

Name of project Description Category

1. Automated Mooring System (FEL 4) Mitigate Surge at Container Berth Safety

2. Administration Craft Basin (FEL 4) Marine Fleet Jetty and Marine House Capacity

3. Administration Building (FEL 4) New PoN Administration Building Capacity

4. Tank Farm (Land & Marine) FEL 4 Relocation of Tank Farm Operations from Port of PE

Capacity

5. Manganese Project (FEL 4) Relocation of Manganese Operations from PoPE

Capacity

6. Sand Bypass Mandatory compliance Compliance

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1. Automated Mooring System (FEL 4) Mitigate Surge at Container Berth Safety

2. Administration Craft Basin (FEL 3) Marine Fleet Jetty and Marine House Capacity


4. Fencing of Cadastral boundary Construction of the Cadastral boundary, lights and cameras around the Port for security purposes

Safety

5. Tank Farm (Land & Marine) FEL 4 Relocation of Tank Farm Operations from Port of PE Capacity

6. Manganese Project (FEL 4) Relocation of Manganese Operations from Port of PE

Capacity

7. Sand Bypass Mandatory compliance Compliance8. Plant for Infrastructure Department Plant required by infrastructure for maintenance

and to execute minor projectsCapacity

9. Western Emergency Entrance to the Port Construction of a secondary Port entrance for access to the Port during emergencies.

Safety & Security

10. Workshops, offices and facilities for Infrastructure Department

Provision of offices, workshops, and facilities to the Infrastructure Department personnel

Capacity

11. Research & Development Wind Mitigation Study etc Safety

12. Install Scada System for the Port Services Installation of Scada System for the Port Services Maintain

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Mitigate Surge at Container Berth Safety


Marine Fleet Jetty and Marine House Capacity

3. Administration Building (FEL 4)

New PoN Administration Building Capacity

4. Fencing of Cadastral boundary Construction of the Cadastral boundary, lights and cameras around the Port for security purposes

Safety

5. Tank Farm (Land & Marine) FEL 4

Relocation of Tank Farm Operations from Port of PE

Capacity

6. Manganese Project (FEL 4) Relocation of Manganese Operations from Port of PE

Capacity


8. Plant for Infrastructure Department

Plant required by infrastructure for maintenance and to execute minor projects

Capacity

9. Western Emergency Entrance to the Port

Construction of a secondary Port entrance for access to the Port during emergencies.

Safety & Security

10. Workshops, offices and facilities for Infrastructure Department

Provision of offices, workshops, and facilities to the Infrastructure Department personnel

Capacity

11. Research & Development Wind Mitigation Study etc Safety

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Mitigate Surge at Container Berth Safety


Marine Fleet Jetty and Marine House Capacity


4. Tank Farm (Land & Marine) FEL 3 Relocation of Tank Farm Operations from Port of PE

Capacity

5. Manganese Project (FEL 3 Complete)

Relocation of Manganese Operations from PoPE

Capacity

6. General Cargo (FEL 3) New General Cargo Berth to accommodate new business from IDZ and Hinterland

Capacity


8. Additional 70 Ton Bollard Pull Additional Tug : Increase in cargo handling

Safety

Construct Port of Ngqura

CapexR130mScope 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 CreationDirect : 120Indirect : 90

Supplier DevelopmentLocally based sub contractor

Automated Mooring System

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Operationalise Port of Ngqura

CapexR260mScope Construction of Administration

Building

Progress WBHO appointed


Supplier Development40% local suppliers

Administration Building

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Operationalise Port of Ngqura

CapexR320m

Scope Construction of Craft basin Facility and

Administration building Marine

ProgressACB Marine – contract awarded Basil Read appointed

ACB Building – Design phase


Supplier Development20% locally based

ACB building & Craft Basin Facility

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Tank Farm

CapexR2.9bn

Scope Construction land side infrastructure and

Marine berth

ProgressCapex ETC Approved



Tank Farm Marine and Landside

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Manganese

CapexR26.663bn (TFR 18.094bn & TNPA 8.568bn)

Scope Construction of Rail, Terminal and Marine

superstructure

ProgressEPCM busy with Design Validation

Job Creation

Direct : 18600Indirect : 14000


Construct manganese

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Final Port Solution Utilises Existing Berths and Is Scalable

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1

3

2

4 5 6

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N2 HighwayRail Mainline

Coega River Rail Bridge

Coega River

The port scope (Take- off point from the Coega river bridge )

Arrival and departure yard1

Existing berths C101 and C1002

Two ship-loaders capable of loading up to two 80,000 DWT Panamax size vessels simultaneously

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Three stackers and related stockyard conveyors to stack ore on the stockpiles, with provision to add a fourth stacker in future

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Two reclaimers and related stockyard conveyors to reclaim ore from the stockpiles, with provision to add a third reclaimer in future

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Four stockyard rows, with provision to add two additional rows in future

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Dual surge bins at the stockyards to optimize ship loading efficiency

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Port of NgquraMarket Demand Strategy & Concluding Thoughts

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..

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Port of Ngqura - After

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Thank you.

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

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