TRANSNET NATIONAL PORTS AUTHORITY PORT OF CAPE TOWN 2015 FOCUS AREAS

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1 TRANSNET NATIONAL PORTS AUTHORITY PORT OF CAPE TOWN FOCUS AREAS

2 CONTENTS PROJECT PHAKISA MARKET DEMAND STRATEGY PORT PERFORMANCE CUSTOMER RELATIONSHIP MANAGEMENT ACTIVITIES PORT PLANNING PORT INFRASTRUCTURE DEVELOPMENTS

3 The Lab recommended the following initiatives for marine transport and manufacturing A Infrastructure and operations B Skills and capacity building C Market growth 1 Create supportive funding and revenue model 2 Establish purpose-built oil and gas port infrastructure by appointing Facility Operators Saldanha Bay 3 Align on Implementation of government policy 4 Priorities Transnet and TNPA funding allocation towards marine manufacturing 5 Maintain and refurbish existing facilities 6 Unlock investment in new and existing port facilities 7 Implement Strategic Prioritized Project Richards Bay 8 Implement Strategic Prioritized Projects East London 9 Train 2,550 TVET College graduates on an 18-month Workplace-based Experiential Learner Programme in scarce and critical trades over the 5 year period 10 Create dedicated Occupational Teams for MTM Sector (professional, trades, operators and seafarers) 11 Establish trade RPL, CBMT or Centers of Specialization in Saldanha Bay and Richards Bay 12 Train 18,172 learners as artisans, semi-skilled workers and professionals over the next 5 years 13 Increase usage of ESSA system and targeted career awareness services as a high value recruitment tool for MTM 14 Increase capacity to develop skills for ~1,200 ratings and ~720 officers per year 15 Create and implement a public procurement and localization programme 16 Develop a strategic marketing campaign and value proposition for target markets 17 Propose inclusion of preferential procurement clause in the African Maritime Charter 18 Support local registry of vessels through incentives and legislation of using SA-flagged ships for cargo and coastal operations (based on United Nations Conference on Trade and Development and African Maritime Charter guidelines) i. TNPA Transnet National Ports Authority ii.essa Employment Services of South Africa iii.tvet Technical and Vocational Education and Training iv. RPL Recognition of Prior Learning v. CBMT Competency-based Modular Training

4 COMPLEMENTARY REGIONAL PORTS COMPLEMENTARY REGIONAL PORTS An integrated system of complementary regional ports and rail corridors BOAT BUILDING OIL RIG REPAIRS SHIP REPAIRS Richards Bay Durban Saldanha Bay East London Ngqura Cape Town Port Elizabeth

5 Enhancing Ship Repair Facilities to grow and expand (1) FLOATING DOCK INCREASE AND LENGHTEN REPAIR QUAY Repair Quay Sturrock Dock BIGGER SHIP LIFT CURRENT PROJECTS (within 5yrs) 1. Refurbish the existing Ship repair facilities (Synchrolift, Robinson dock, Sturrock Dock) 2. Widening and Lengthening of Repair Quay 3. Replace 10 Cranes within the Ship Repair MEDIUM TERM PROJECTS (Beyond 5yrs) 1. Converting the Yatch club into a bigger Ship lift facility ; 5

6 CAPE TOWM CAPEX BUGDET PROJECT NAME Programme and Budget (2014/15) Programme and Budget (2015/16) Programme and Budget (2016/17) Programme and Budget (2017/18) Programme and Budget (2018/19) Refurbishment of floating caisson Sturrock Dry-dock Refurbishment of Sturrock Dry-dock Refurbishment of Robinson Dry-dock Refurbishment of Synchrolift Refurbishment of Robinson Dry-dock floating caisson Replacement of water circulating pumps at Sturrock dry dock Widening and Lengthening of Repair Quay Replacement of 12 Cranes Enclosing Synchrolift and Robinson Dock 6 TRANSNET AUDITED RESULTS 2014

7 CORE FUNCTIONS (National Ports Act, Section 11) Landlord Master planner Controller of ports navigation Promote the use, improvement and development of ports, and control land use within the ports, having the power to lease port land under conditions it determines. Plan,, improve, develop and maintain port infrastructure. Make and apply rules to control navigation within port limits and approaches, ensure protection of the environment and ensure safety and security within port limits. Controller of ports services & facilities Marketer & administrator Change agent Coordinator with other state agencies Ensure that port services and facilities are provided, and may enter into agreements or licence other parties to provide these. Ensure that adequate, affordable, equitable and efficient port services and facilities are provided for port users. Ensure non-discriminatory, fair, transparent access to port services and facilities; advancement of previously disadvantaged people; promotion of representivity and participation in terminal operations; enhanced transparency in port management. Advise on all matters relating to the port sector, and liaise with all stakeholders. 8

8 TRANSNET MARKET DEMAND STRATEGY IN ACTION R300bn capital investment programme Expanding rail, port and pipeline infrastructure Increase in capacity to meet market demand Continued financial stability and strength Significant productivity and operational efficiency improvements Shift from road to rail reducing the cost of doing business and carbon emissions Enabling economic growth Job creation, skills development, localisation, empowerment and transformation opportunities

9 Volumes per Segment Containers Liquid Bulk Dry Bulk Breakbulk ytd Aug Breakbulk Dry Bulk Liquid Bulk Containers

10 PROGRESS TO DATE Containers CTCT Expansion Project has been completed and has been commissioned. Ship Repair Rails The replacement of the crane rails at Robinson Dry-Dock has been completed Marine Replacement of two Pilot boats - The Port took delivery of the two pilot boats Roads The roads upgrade portion at Duncan Road has been completed in December Rehabilitation of Salt river Bridge The Tender has been awarded, the construction is due to commence mid January 2014 Eskom Site (Electrified fence) Matter has been addressed with City however awaiting their final response.

11 CUSTOMER RELATIONSHIP MANAGEMENT (CRM) INITIATIVES SAP / CRM SYSTEM 29 August 2014 Collection and integration of customer data for effective management of customer interactions Improve customer relationships by implementing quicker turnaround times to enquiries Standardization of business processes and integration across all ports On-going Customer Service Training to internal staff Establishment of Sector Forums Ship Repair Liquid Bulk

12 PORT PLANNING

13 PORT OF CAPE TOWN AT A GLANCE TERMINALS 10 Licenced Terminal Operators Multi Purpose Terminal Containers Liquid Bulk Break Bulk Ship repair and Oil & Gas Cruise Liner MAKERT DEMAND STRATEGY STRATEGIC FOCUS AREAS Protect and grow the port s primary revenue stream - expand container terminal capacity Ensure optimisation of port capacity and improve operations effectiveness reconfiguration of Duncan Dock Ensure a safe and compliant operational environment Recapitalize Ship Repair Business Ensuring a financially sustainable port as well as lowering the cost of doing business - Culemborg

14 INFRASTRUCTURE DEVELOPMENT DRIVERS Increase in import/export container volumes Market growth demand in all cargoes Volumes Shipping Technology New builds 8,000-22,000 TEU Economies of scale Cascading of vessels on routes Larger Cranes Inter-modality Ports need depth and quay length Eco-systems Off-sets Socio-political systems Economy Human Capital Management Responsible development Sustainability Cost of Capital Development constraint Risk management Forces phasing of investment Development rationale 15

15 PORT STRATEGIC FOCUS Growing volumes and place focus on continuous container growth, agricultural products and increased growth in the oil and gas industry. Skilled staff to continuously improve port efficiencies and provide world class facilities, capacity ahead of demand. Constantly improving performance and being customer centric in delivering superior service. Safe reliable transport logistics by integrating and maximizing our assets, Continuously driving costs down and efficiency upwards and demonstrate concerns for sustainability on an on-going basis. DELIVERY OF INFRASTRUCTURE PROJECTS Focus on completion of current projects in line with project plan 2014/2015 REAL ESTATE STRATEGY Land use plan to provide Port capacity SAFETY MANAGEMENT Alignment of identified risks and associated internal controls for mitigating purposes HUMAN CAPITAL DEVELOPMENT Encourage learnership intake in scarce and critical skills to achieve objectives RETAIN AND GROW CARGO VOLUMES Ensure customer satisfaction and provide integrated solutions for cargo owners REVENUE GROWTH Develop and manage an effective port system Grow the market (induce growth in developed and developing sectors of the market) IMPROVE PORT EFFICIENCIES Improve and sustain port operational efficiencies through improving and influencing seamless integration of SA port system with the logistics chain 16

16 CURRENT & LONG TERM PLANS Current layout 1. Duncan Dock with MPT and bulk terminals, ship repair and fishing facilities 2. Ben Schoeman Basin and Cape Town Container Terminal 3. Cape Town CBD 4. Victoria and Alfred Waterfront 5. Port Industrial Park Long term layout 1. New breakwater 2. New outer basin with deepwater berths 3. Reclamation to increase landside container handling areas 4. Potential for liquid bulk terminal and berths

17 Port of Cape Town Artist s Impression Future Reclaim Yacht Club Proposed Cruise Liner facility Container terminal expansion A Berth remains for Rig repairs PAGE

18 PORT ENGINEERING

19 Port Infrastructure Development Name of project Description Progress % Category 1.Fire Fighting Equipment at Tanker Basin FEL 4 Upgrade and Installation of New Fire Fighting Equipment at Tanker Basin 12% Safety / Compliance/Cap acity 2. Reconstruction of Major Roads FEL 4 3. Upgrade Sewer Network FEL 4 Rehabilitation of road networks within the port 90% Sustainability Upgrade of sewer network system 98% Sustainability 4. Civil and Electrical Infrastructure FL 4 Civil and Electrical Infrastructure for Security Upgrade Project 100% Safety 5. Rehabilitation of Breakwater FEL 3 Rehabilitation of the Main Breakwater 33% Safety /Sustainability

20 Port Infrastructure Development Name of project Description Progress % Category 6. Stabilization of Long Quay FEL 3 Stabilizing the Long Quay 95% Safety /Sustainability 7. Rehabilitation of Salt River Bridge FEL 4 8. Refurbishment of the syncrolift FEL 4 9. Replacement of MV Cables FEL 4 Refurbishment of the Salt River Bridge 50% Safety Refurbishment of the Syncrolift 90% Safety Replacement of MV Electrical Cables 15% Safety 10. Replace Mech Equip Replacement of the Mechanical Equipment 0% Compliance

21 Dredging Campaign Communicated Project Timelines Debris Removals and Surveys = 15 July st of July 2014 Obtain Capital Funds = Local CAPIC 30 th July 2014 Investment Forum = 18 th of August 2014 National TNPA CAPIC = 3 rd of September 2014 Commence with Dredging = 30 th of September 2014 Revised Date = 30 th of October 2014 Complete Dredging = 20 th of December 2014 ( 3 Berths)

22 CTCT Surging Effect Update Engaging with shipping lines to reconfigure the mooring lines on the vessels Engaging with service providers for long wave studies for prediction system (similar) to Port of Nqgura and implementation of mooring line tensioners systems possible trial run at one berth

23 Thank You

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