Mr Chris WellsActing Group Chief Executive07 October 2010
UPDATE ON PROGRESSNMPP INFRASTRUCTURE INVESTMENT
OBJECTIVE OF THE PRESENTATION
1
Progress in rolling out the project
To share challenges and impact on
timelines and projected future cost
INDEX
Transnet Strategy and Investment plans Mr. C Wells
Project Progress Mr. N Eve
Security of supply: Bridging Plan Mr. C Möller
Conclusion and Way forward Mr. C Wells
Objective of this session
As indicated in past, Transnet will update all roleplayers including the media when appropriate. Communication to the
stakeholders is being made on a regular basis (Transnet Board; DoE/DPE; Regulator/NERSA; Media)
TRANSNET’S STRATEGIC PRIORITIES
2
Increase productivity and efficiency
Volume growth
Create capacityFinancial sustainability
Improving customer services
Regulatory environment
SHEQ
Strategy enablers
Human resources
The NMPP is important and significant in Transnet’s capital investment programme
TRANSNET’S INFRASTRUCTURE INVESTMENT PROGRAMME
3
Total 5- year plan:R93.4bn
15.316.217.1
21.922.8
14/1513/1412/1311/1210/11
Transnet’s Capital Investment PlanFive Year
Plan(Rbn)
Rail 54.6
Ports 24.7
Pipeline & Other 14.1
Investment Plans are reviewed annually to ensure alignment with market conditions and operational
requirements and approved through governance structures
NMPP investment cost included in the approved 5-year plan
To enable and support economic growth, Transnet continues with its major capital investment programme
Transnet is committed to the roll-out of its capital investment plans
R b
illio
n
NMPP: MAJOR STRATEGIC PROJECT IN TRANSNET INVESTMENT PORTFOLIO
4
• The Department of Energy in 2006 required the size of the new pipeline to be increased to address projected potential security of fuel supply shortages in 2010/11.
• The Transnet Board in 2008 took the decision to proceed with the NMPP project despite certain unresolved risks to ensure that South Africa (specifically Gauteng) did not face fuel shortage.
NMPP Investment:
Strategic Intent
• To replace the existing 45-year old Durban-Johannesburg Pipeline (DJP - 12 inch) urgently as it
is running at full capacity and nearing the end of its design life
• To increase the capacity on this critical route (Durban-Gauteng) to meet projected demand (16
inch required) from a business case perspective
• Include additional capacity to ensure security of supply for the long term as required by the
Department of Energy (mainline increased from 16 inch to 24 inch)
Investment Overview
• 555km of 24 inch pipeline (mainline) and 160km of 16 inch pipelines
• NMPP, as both a Greenfields and Brownfields project, executed over long distances with difficult
terrain would have significant issues in respect of cost and time delivery
Rolling out with a sense of urgency
Strategic and important world-class asset for South Africa over the long term
NMPP INVESTMENT COST
5
Forecasted investment cost shared with stakeholders
March 2010 = R15.5bn (baseline)
Expert multi-disciplinary team currently finalising cost and commissioning dates given the now
generally advanced state of engineering and design
Updated costs and deliverable dates will be communicated in Nov/Dec 2010
This will be shared with all governance bodies and roleplayers
Increase of R1bn in the NMPP project cost impacts the fuel price by a relatively small amount
(estimated currently at less than 1 cent/litre)
The 5 year funding plan includes funding from:
• Transnet Domestic and International Bonds (DMTN/GMTN)
• Commercial paper
• Development Finance Institutions
• Export Credit Agencies
FUNDING PLANS
6
Funding requirements 2010/11 to 2014/15
Of R40bn
Funding Strategy
FundingInvestment
Transnet does not receive any subsidies or loans from the Government (Shareholder)
Transnet funds its capital investment programme from:
• Cash flows from operations (tariffs)
• Funds raised in the debt capital markets based on Transnet’s strong balance sheet and
credit rating
Fuel levy to Transnet for the next 3 years for funding of “Security of
Supply” portion of the NMPP project (24 inch mainline),
• Would have been received by way of tariffs in
subsequent years (now will be deducted from the asset base –
no double counting)
• As no returns are allowed by Regulator on Capital work
in progress
• Received first levy payment during September 2010
Transnet Pipelines:Security of
Supply
24”
16”
Increased investment risk to ensure appropriate return on investment
There remains significant economic regulatory risk as the determination of the required tariff by
NERSA is still an area of significant concern.
It is critical that tariffs granted give a fair return on invested capital.
However Transnet is committed to engaging constructively with NERSA and DOE to ensure that going forward the Regulatory process results in predictable and fair
tariffs (cash flow for Transnet)
UNCERTAINTY IN REGULATED TARIFFS
7
Although uncertainty in funding model and rate of return
Mr Neville Eve
07 October 2010
NMPP PROJECT PROGRESS
SCOPE OF THE NMPP
160km of new 16 inch Pipelines including
connection to 3 existing depots and
the Jameson Park pump station
2 New Terminals
a Greenfields site at Jameson Park and
a Brownfields site at Island View at the Port of Durban
555km of new 24 inch Pipelines
Several major and minor river crossings
Half of the line in mountainous terrain
Wetlands
Four Mainline Pump-stations in Phase 1, (Pump station 0 being at Terminal 1)
Pumping capacity to move product 1800 metres up the escarpment
Max pumping capacity after initial installation is ca. 1150m3/hr
9
INDIANOCEAN
LADYSMITH
BETHLEHEM
VOLKSRUST
NEWCASTLEKROONSTAD
KLERKSDORP
WITBANKKENDAL
WALTLOO
SECUNDA
STANDERTON
ALRODE
COALBROOKSASOLBURG
TARLTON
LESOTHO
NATAL
FREESTATE
GAUTENG
N
RUSTENBURG
NORTH - WESTMPUMALANGA
KWAZULU /
AIRPORT
VRYHEID
RICHARDS BAY
AFRICA
VAN REENEN
EMPANGENI
JAMESON
DURBAN
PARKCAPE TOWN
DURBAN
GAUTENG
SOUTH AFRICARICHARDS
BAYLESOTHO
SECUNDA
REFINED PRODUCTSCRUDE OILGASAVTURFUTURE NMPP PIPELINES
PPT-1741
PRETORIA WEST
PETROLEUM PIPELINE NETWORK AND THE ROUTE OF THE NMPP
NMPP TECHNOLOGY
11
NMPP STRATEGIC VALUE CHALLENGES
Safe, environmentally friendly and efficient system that will provide for security for supply for the long term.
Significantly reduce the current road haulage of fuel from Durban to Gauteng.
Enhance supply integrity (low dependence on oil company feeder line run down scheduling)
A new liquid fuel transportation system to support strong economic growth for South Africa.
Product demand driving a schedule prioritised project which commenced on a fast track basis.
Engineering keeping pace with the delivery of the project.
The management of a complex physical and multi stakeholder delivery environment.
Transnet has met and will continue to meet these challenges.12
Status of the Project13
MAIN LINE PROGRESS
Line Pipe Delivery Complete
Welded 491.7 km (98.4%)
Backfilled 364.1 km (76.8%)
Re-instated 250.7 km (52.9 %)
14
Main River crossings complete (49)
Major Wetland crossings complete (481) (95km)
First welding crew demobilized
Mainline sections on schedule
Hydro-testing began
Land Acquisitions complete (1148 properties)
All Environmental Approvals in place
MAIN LINE PROGRESS
15
DURBAN AREA PROGRESS
Durban area welded 71.1km (88.2%)
Durban area backfilled 35.8km (44.4%)
Durban are re-instated 11.5km (14.3 %)
16
Progress 32% (33%)
Eskom Power supply progressing
Earthworks and Civil works ahead of schedule
Management of Risks
Engineering & design
Fast track construction
Materials delivery
PUMP STATION PROGRESS
17
Progress 27% (33%)
Ahead of Schedule
Satisfactory Safety and Environmental performance
Tank foundations
Management of Risks
Engineering & design
Material delivery
Vendor data
INLAND TERMINAL (Terminal 2) PROGRESS
18
19Project Management
20
TRANSNET PROJECT LIFE-CYCLE PROCESS
NMPP Licence Conditions Schedule Requirements
NOTE:
The delay in the 24” Trunkline gives rise to the need for a Bridging Plan
Stakeholders were advised Jan – March 2010 of the delayed final completion date of Aug 2013. This remains the target completion date.
Transnet’s current revised forecast dates for each of these licence conditions are as follows:
NMPP CONSTRUCTION SCHEDULE AND LICENCE CONDITIONS
LICENCE CONDITION
ASSETS TO BE OPERATIONAL DATE IN LICENCE
CURRENT FORECAST
1.3 KENDAL TO WALTLOO LINE CONSTRUCTION COMPLETE 31 DEC 2009 31 DEC 2010
10.4 COMMENCE OPERATION OF 24” TRUNKLINE 31 MAR 2011 31 DEC 2011
1.2CONSTRUCTION OF ALL ASSETS COVERED BY THE LICENCE COMPLETE AND READY FOR OPERATION
20 DEC 2011 31 DEC 2013
21
DELAY IN CONSTRUCTION SCHEDULE
22
Abbreviated project life cycle process
Fast Track Engineering demand
Long lead procurement challenges
Contract strategy impact
Route and location option feasibility engineering
Physical environment
Adverse weather
Rock / Trenchless Crossings / HDD / Wetlands / Street Works / Security
Physical / logistical construction spread
Statutory approval process
Land acquisition
Underestimated wetland impact
Time related costs
Social interface challenges
PRIMARY SCHEDULE DELAY & COST DRIVERS
23
Proposed Island View Terminal Station FYNNLAND
Pipeline routes not shown
Existing Transnet pump station
DURBAN HARBOUR
DURBAN PORT & ISLAND VIEW PROPOSAL AS IN MARCH 2008
Natcos Tank
24
DELIVERY ACHIEVEMENTS
25
The Mainline and Facilities Project is progressing well
Majority of major contracts have been awarded
Pipeline is fully manufactured and on site
Commissioning of inland systems underway
All regulatory approvals have now been obtained
World class technologies employed
Communities have benefitted from construction of the main line
Transnet has been a responsible corporate citizen in the delivery of this project, incl
2100 local people recruited, trained and employed over 9 magisterial districts
190 home owners participated in the NMPP Mini Quest Houses accommodation project
Specialised skills training eg. 40 Welders (25 % women and 20 advanced qualification)
World class standards of physical environment protection and re-instatement
SECURITY OF SUPPLY - BRIDGING PLAN26
OVERVIEW OF TRANSNET PIPELINES (TPL)
27
Turnover of about R1,4 billion/annum.
560 Employees with Head Office in Durban.
We own, maintain and operate 3000 km of high pressure, underground steel pipes supplying energy (petroleum and gas) to the economic heartland of our country. At any moment the SA Oil Industry has 300 million liters of fuel in our system.
We transport energy in the form of a variety of petroleum products such as petrol, diesel, crude oil and jet fuel as well as Gas through our pipelines and our clients are the Oil Companies of South Africa (SAPIA-members).
Our pipelines are like arteries supplying energy to the eastern parts of our country and are key elements to ensure an appropriate supply of petroleum products to meet security of supply challenges.
Capacity constraints in our pipeline system could hamper economic growth in our country’s heartland. Present petroleum pipeline between Durban and Gauteng is operating at maximum capacity which is insufficient to meet demand.
Primary (“First Choice”) mode of transport of SA Oil Industry for Liquid Fuels being safe, bulk volume, low cost, reliable, environmentally friendly carrier.
Our tariffs are used as benchmarks for pricing with regard to the transport element of the controlled price of fuel in South Africa.
We are regulated by the National Energy Regulator of South Africa (NERSA) as far as both our petroleum as well as gas activities are concerned.
We presently hold the following licences (with conditions) from NERSA:• Operations of the total petroleum pipeline system.• Operations of the Gas pipeline (Lilly-line)• Operations of the Tarlton storage facility.
(For all licenced operating activities, tariffs are set and/or approved by NERSA.)• Construction of the New Multi Products Pipeline (NMPP).
INDIANOCEAN
LADYSMITH
BETHLEHEM
VOLKSRUST
NEWCASTLEKROONSTAD
KLERKSDORP
WITBANKKENDAL
WALTLOO
SECUNDA
STANDERTON
ALRODE
COALBROOKSASOLBURG
TARLTON
LESOTHO
NATAL
FREESTATE
GAUTENG
N
RUSTENBURG
NORTH - WESTMPUMALANGA
KWAZULU /
AIRPORT
VRYHEID
RICHARDS BAY
AFRICA
VAN REENEN
EMPANGENI
JAMESON
DURBAN
PARKCAPE TOWN
DURBAN
GAUTENG
SOUTH AFRICARICHARDS
BAYLESOTHO
SECUNDA
REFINED PRODUCTSCRUDE OILGASAVTURFUTURE NMPP PIPELINES
PPT-1741
PRETORIA WEST
THE EXISTING NETWORK ALSO INDICATING THE ROUTE AND POSITION OF THE NEW MULTI-PRODUCT PIPELINE (NMPP)
Wholesale margin50.868
7% Service cost recoveries10.800
1%
Dealers margin81.20010%
Zone differential, 15.500, 2%
TPL tariffs: 11.6Differential : 3.9
Fuel Levy160.000
20%
NMPP Levy7.5001%
Customs & exercise4.0001%
RAF levy72.000
9%
Petroleum Products Levy0.1500%
Incremental Inland Transport Recovery Levy
3.0000%
Basic fuel Price390.782
49%
PERSPECTIVE ON PIPELINES TARIFFS : AS PERCENTAGE OF FINAL FUEL PRICE
29
Example: Petrol price: Gauteng October 2010 @ 796.00 c/l
30
THE NMPP – STRATEGIC NEED FOR SOUTH AFRICA
2 Increase pipeline capacity between Durban and Gauteng
Sequence of events leading from Pipeline Capacity Study (Plan) to NMPP Project
Plan initiated in 1996. More capacity needed in 2015 at time. Annually updated.
2002 update : Higher growth rates. Need shifted to 2010.
Start with planning for new pipeline. Address both issues of DJP replacement and additional capacity (2003).
Transnet approval to build NMPP – January 2005.
16" pipe to be completed Q3 2010.
Project started (feasibility)
During 2006 : Shareholder debate and request to revisit project
20 year planning horizon
Annual GDP-growth of 6%
Major changes in South Africa Oil Industry
Termination of Sasol Supply agreement
Clean Fuel project
Increase in economic growth in country and therefore demand for fuels not seen before.
Consequence : Urgent 2006 update of plan.
Overall result : More pipeline capacity needed, earlier – need for Bridging Plan from 2006/2010
At the same time : 24" pipeline optimal solution for 20 year challenge – with ability to increase capacity on a phased-in-as-required (modular) basis.
Operational philosophy and network configuration change dramatically – trunkline with terminals concept.
31
THE NMPP – STRATEGIC NEED FOR SOUTH AFRICA
0
2005
2007
2013
2015
2017
2019
2021
2023
2025
2027
2029
2031
YEAR
Trunkli
ne Des
ign –5%
24” @ 3m/s (max)
24” @ 2m/s
12" - PRESENT
1 000
1 500
2 000
2 500
3 000
3 500
4 000
m³/h
500
2009
2011
BER – 3.6%
DESIGN GROWTH (PIPELINE)
PROBABLE GROWTH
LOW GROWTH
24" @ DIFFERENT FLOW-RATES
EXPANSION STEPS TO MEET 4,2% DEMAND
NMPPNMPP
2010
24” @ 0.5 m/s (calculated min)
24” @ 1m/s
Facilities and Fin. M
odel -4.2%
Flow
rate
nee
ded
NMPP INITIAL INVESTMENT AND MODULAR EXPANSIONS TO MEET DEMAND OF 4.2% Y-O-Y THEREAFTER
32
Contingency with MP Model should NMPP run
late (almost 2 years)
Planned NMPP completion
2015
Growth Line (example 5%)
Ops Changes
DRA's
DIC
Rail
Original Capacity AvailablePipe, Rail and Road
NMPP
Capa
city
nee
ded
from
coa
st
Time 2010
FIRST TPL BRIDGING PLAN BASED ON ORIGINAL CONCEPT OF “STAYING ABOVE THE RED LINE” (2006-2010)
DRA: Drag Reducing AgentsDIC: Diesel in Crude Pipeline
PERMANENT RAIL AND ROAD
33
Operational Changes
DJP design capacity - 74 Ml/w Operating capacity at 68 - 70Ml/wUntil the Bridging Plan intervention only 63Ml/w was possible because of inefficient industry
coordination, ordering, scheduling, injection and acceptance of productCooperation amongst all role-players to address inefficiencies and enhance utilisation of pipeline
network
DRAsDRAs are long-chain hydrocarbon polymers Had to do extensive testing with SAPIA members in early 2007 Was planned for April 2007, only achieved end November 2007
THE BRIDGING PLAN (PHASE 1) : DETAIL
34
DIC InitiativeCOP not used at capacity since clean fuel project - end 2005Opportunity to transport other petroleum products in the COPContamination of diesel & processing of crude-diesel intermixture is issueDIC initiative developed in detail between Transnet Pipelines and the inland Natref refinery
With OPS, DRA and DIC initiatives of Bridging Plan TPL has been able to keep the Gauteng region fully supplied. Last stock-outs in December 2005 (clean fuels). Economic downturn did have a positive effect. More than 3,8 billion litres of fuel delivered additional over the period by TPL. Role of road transport also important for successful supply.
Rail & Pipeline Cooperation (Durban-Gauteng Corridor)Allocate more Rail Tank Cars (RTCs) to transport fuels from DurbanChallenge is not to invest in new RTCs but to improve use of present fleet by improving on the
turnaround time of the RTCsOther initiatives like Jet-fuel to continue and be increased
THE BRIDGING PLAN (PHASE 1) : DETAIL
35
36
WC2010 SUCCESS STORY
SUCCESSES OF COMBINED TRANSNET PIPELINES AND TRANSNET FREIGHT RAIL PLANS TO SUPPLY OR TAMBO AIRPORT DURING FIFA WORLD CUP 2010
No stock-out occurred during period.
TFR delivered 16Ml/w ex Durban on continuous basis.
TPL delivered 24 Ml/w ex Natref as planned.
All refineries supplied as planned.
Role of co-ordinating meeting between all roleplayers, lead by Department of Energy (DOE),
paramount in success.
Competition Commission exemption was critical for success.
TPL Simulation model developed as part of process, key in daily monitoring and overall
success of managing the project.
Silent success story of Fifa WC2010.
NMPP LATEST DELAYS : DE-RATING OF THE DJP AND SECURITY OF SUPPLY RISKS AND CHALLENGES
Latest delays on NMPP will require the DJP to continue running at full capacity for at least another 9 months beyond 31 March 2011 to cope with security of supply challenges to Gauteng.
After this, DJP is de-rated and run in combination with the NMPP trunkline. (By-passing TM1 as originally planned as part of By-pass project)
Intelligent pigging inspection of the DJP has just been completed. Final report not available as yet but the interim results indicate that the line still needs to be de-rated by 1 April 2011.
A direct consequence of this is increased of risk of security of supply to the inland market. Alternative modes of transport will be needed to cope with this requirement (road, rail or combination).
The current Bridging Plan must be enhanced to ensure security of supply.
Plans will be developed to address two distinct periods, namely,o April – December 2011 (only downrated DJP, no NMPP trunkline (Bridging Plan II)o Post December 2011 (downrated DJP plus partial NMPP trunkline: By-pass project)
For period April – December 2011 detail plans need to be developed between DOE, DPE, TPL, TFR and Oil Industry to cope with the challenge of de-rating the DJP before the NMPP is available – Phase 2 of TPL’s present Fuel Bridging Plan.
37
38
Detail of Action Plans required during 2012 and 2013 (from 1 January 2012) – By-pass project
1. Key principle of actions based on concept of simultaneous use of present DJP (to a de-rated service-level) and the NMPP whilst by-passing Terminal 1 (TM1) in Island View (Port of Durban).
2. Use of present Transnet Pipelines (TPL) Durban depot in Island View on a tight-lining basis is key to concept.• Present TPL feederlines to Durban depot will be used.• Present meters and pumps with a modified manifold will be used to feed both the DJP and NMPP
simultaneously.• On exit-side of present depot a link needs to be made to presently mothballed 18" pipeline of TPL• This 18" line will then be connected to the new 24" NMPP trunkline at exit-side of TM1, now to be
commissioned later.
3. Through present TPL Durban depot the NMPP will be able to run on diesel at a flowrate of 500m3/h.
4. Flowrate (as a multi-products pipeline) of the DJP will be decreased from present 520m3/h with DRA’s to 400m3/h still with DRAs in order to reduce operating pressures required for prescribed de-rated condition of pipeline for continued use (initial expert requirement).
5. Above will provide the ability to by-pass TM1 on a tight-lining basis and will be able to meet with projected demands in 2012 and 2013.
6. NMPP able to function as multi-products line @ 500m3/h (role of TM2) – further reduced risks on DJP.
ACTIONS TO MITIGATE SECURITY OF SUPPLY AND DJP RISKS
39
ACTIONS TO MITIGATE SECURITY OF SUPPLY AND DJP RISKS
40
TIGHT-LINING: FEEDER LINES THROUGH METERS AND DIRECT TO PUMPING STATION AND INTO PIPELINES
FUTURE NMPP: FEEDER LINES THROUGH METERS AND DIRECT TO ACCUMULATOR TANKS FROM TANKS TO PUMPING STATION AND INTO PIPELINE
TANKS
NEW COMPANYFEEDER LINES
INTO TM1
PUMPINGSTATION TM1 (TERMINAL 1)
LINK LINE
TRANSNETPIPELINESEXISTINGFEEDER LINES
METERSPUMPINGSTATION
EXISTING DURBAN PUMP STATION
LINK LINE
METERS
DURBAN MANIFOLD SPLIT TO RUN BOTH DJP AND NMPP AT THE SAME TIME
DIAGRAMMATIC LAYOUT OF THE PROPOSED PUMPING PROCEDURE WHEN USING BOTH DJP AND NMPP AND BY – PASSING TERMINAL1 (TM1) (PRINCIPLE OF TIGHT - LINING)
ACTIONS TO MITIGATE SECURITY OF SUPPLY AND DJP RISKS
41
Initial Task Team similar to that for Fifa World Cup 2010 approval to implement Nov 2010
Sub Task Team ..
Sub Task Team 2
TRANSNETResponsible for Security of Supply
TRANSNET OIL COMPANIES OTHERS
PROJECT MANAGER
Pipelines (TPL)
Rail (TFR)
Ports (NPA)
Sapia
BP
Chevron
Engen
PetroSA
Sasol
Shell
Total SA
Dept Energy (DoE)
Dept Transp (DoT)
Airports (ACSA)
Ortia (ORTAFS)
Road Haulers (RFA)
Provincial DoT's
STEERING COMMITTEECEO Level
(TPL, TFR, Sapia, DoE, DoT, DPE)
TASK TEAM
Sub Task Team 1LPT
OtherVuyo
Khulaco
Other
PHASE 2 OF TPL’S BRIDGING PLAN (APRIL – DECEMBER 2011) (BPII)
PHASE 2 OF TPL’S BRIDGING PLAN (APRIL – DECEMBER 2011) (BPII)
QUANTIFYING THE TASK
42
43
PHASE 2 OF TPL’S BRIDGING PLAN (APRIL – DECEMBER 2011) (BPII)
SOLUTIONS AND PRINCIPLES
Principles to apply in reaching a solution :
• Focus on Transnet Freight Rail solutions before road solutions – first prize is to keep road at present
levels.
• Focus on block trains as opposed to General Freight Business (GFB).
• Focus on depot bridging volumes as opposed to direct to customer deliveries (smaller volumes).
• Focus on shifting coastal and on rail volumes rather than current rail volumes ex inland refineries.
• Avoid capital investment that cannot be used after the end of BPII.
• Take into account the long term sustainability and growth prospects of both rail and pipe.
• Utilise synergies between rail and pipe.
• Apply lowest cost options first.
44
PHASE 2 OF TPL’S BRIDGING PLAN (APRIL – DECEMBER 2011) (BPII)
• Replace remaining pipeline deliveries to Ladysmith and Bethlehem with rail ex Durban [Permanent Solution after NMPP]
• All Jet Fuel from DBN to Ortia by rail, not pipe [Permanent Solution after NMPP up to 16ml/wk]
• Shift on-railing volumes and capacity to rail ex coast. [Temporary Solution : After BPII, capacity can be shifted back to on-railing] :
– Bloemfontein / Kimberley ex PE/EL instead of Kroonstad
– Mokopane ex DBN instead of ex Waltloo– Botswana ex DBN instead of Tarlton
• Maximise current rail volumes on the Energy Express to Nelspruit, Rocky Drift, Matsapha ex DBN [Permanent / temporary solution]
• Rail from coast to inland pipeline terminals (increase rail to Kroonstad, Waltloo, Langlaagte, Rustenburg, or new rail to Alrode, Pretoria West, Klerksdorp, Witbank [Temporary solution – volumes should return to NMPP after BPII]
• Replace Overland Exports to Zim/Zam/DRC ex SBG/SEC with deliveries ex DBN, Maputo or Beira. [Temporary solution, should be reversed after BPII]
CONCLUSION
45
The NMPP is a strategic legacy investment which will give South Africa security of fuel supply for the
inland market for the long term.
It will be an asset to be proud of - environmentally friendly, safe, enabling economic growth and
providing cost efficient fuel supply.
The NMPP will be delivered successfully within the revised cost and timelines
There are good project controls and cost reviews in place and the NMPP will be benchmarked against
other international pipeline investments
World class multi-product pipeline that will secure the supply of petroleum products for the long term
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