How To Plan Port Development In South Africa

Foreword 04 Port Development Plan In these progressive times, ports have become more than a conduit for cargo movement. The South African ports system drives efficiency, and value-add to the supply chain, which in turn reduces the cost of doing business in South Africa and encourages continued growth. The port layouts in this chapter reflect the strategic vision of Transnet National Ports Authority to meet the demand for port services. Port development is focused on the principles of sustainability and ensuring environmental and socio-economic responsibility in port expansions. To maintain the relevance of the port plans, a spirit of collaboration with stakeholders was sustained throughout the process, and continues to form an integral part of the port planning cycle. Mr Tau Morwe Chief Executive: Transnet National Ports Authority

1. Introduction Table OF contents 1.1 Port system World trade routes World trade routes are global logistical networks used for the commercial transport of cargo to distant markets. Commercial transport of cargo is carried out under World Trade Routes Marine Traffic Figure 1: World trade routes marine traffic international trade agreements, which allows goods to cross borders with relaxed restrictions. The main trade routes are plied by sea going vessels, carrying 80% of all cargo by tonnage, with land-based modes transporting 20% and airlines transporting less than 0,5%. 1. Introduction 119 1.1 Port system 119 1.2 Port planning principles 121 1.3 Transnet inter-governmental engagements 121 1.4 Key port planning trends and issues 122 1.5 Key port development opportunities 122 2. Port demand forecast 123 2.1 National port demand 123 2.2 Container demand 125 2.3 Dry bulk demand 127 2.4 Break-bulk demand 127 2.5 Liquid bulk and single buoy mooring (SBM) crude demand 128 2.6 Automotive demand 128 3. Infrastructure capacity analysis 129 3.1 Long-term vision of port system 129 3.2 National status quo summary 130 3.3 Land use summary 130 3.4 Waterside capacity summary 130 3.5 Container capacity summary 131 3.6 Dry bulk capacity summary 134 3.7 Break-bulk capacity summary 134 3.8 Liquid bulk capacity summary 134 3.9 Automotive capacity summary 135 3.10 Non-freight sector requirements 135 3.11 Inland transport connectivity 136 3.12 Port Authority fleet requirements 136 3.13 Terminal equipment overview 138 3.14 Vessel sizes and port capabilities 140 4. Individual port development plans 143 4.1 Port of Saldanha Bay 143 4.2 Port of Cape Town 152 4.3 Port of Mossel Bay 160 4.4 Port of Port Elizabeth 167 4.5 Port of Ngqura 175 4.6 Port of East London 183 4.7 Port of Durban 190 4.8 Port of Richards Bay 202 5. Alternative demand scenarios 211 5.1 Beneficiation approach 211 5.2 Additional beneficiation scenarios 211 South African ports The nine South Africa ports that fall under the custodianship of Transnet, as per the National Port Regulations of 2007, include: Port Nolloth, Saldanha Bay, Cape Town, Mossel Bay, Port Elizabeth, Ngqura, East London, Durban and Richards Bay. The nine ports are grouped into the western ports (Western Cape), central ports (Eastern Cape) and eastern ports (KwaZulu-Natal). Of the nine ports, eight are commercial ports handling mainly freight and have 30-year cargo demand forecasts. Port Nolloth on the other hand does not have a forecasted cargo demand and due to limitations of waterside infrastructure, currently only provides support services to the offshore mining operations. The port development plans of the Long-term Planning Framewrok (LTPF) focus mainly on the eight commercial ports. The primary role of a port is to provide adequate safe and efficient facilities for maritime freight activities. The older South African ports are geographically positioned to service their immediate hinterlands, with Cape Town providing for the Western Cape, Port Elizabeth and East London serving the Eastern Cape, and Durban serving KwaZulu-Natal, Gauteng and the more distant neighbouring states. In this role, the older ports have developed as general cargo ports providing a wide range of services, with more recent developments including important container handling facilities. 6. New emerging technologies 215 7. Port investment overview 218 7.1 Port Authority seven-year investment plan 218 7.2 Terminal operator seven-year investment plan 219 7.3 Port 30-year investment plan 220 118 LTPF 2014 LTPF 2014 119

1. Introduction South African port system South African Port and Rail System Figure 2: South African commercial port system Figure 3: South African port and rail system An integrated system of complementary regional ports and rail corridors WESTERN PORTS Saldanha Bay Cape Town Mossel Bay Port-rail corridor Port interconnect Cross-border interconnect High volume feeder Network operational flexibility CENTRAL PORTS Port Elizabeth Ngqura East London Durban Richards Bay EASTERN PORTS Saldanha Bay East London EASTERN PORTS Cape Town WESTERN PORTS Mossel Bay Ngqura Port Elizabeth CENTRAL PORTS Durban New Durban Dig-out Port Richards Bay The newer ports were developed primarily to provide for the handling of bulk cargo with Saldanha Bay providing export facilities for iron ore from the Northern Cape, Richards Bay handling exports from the coal mines situated mainly in Mpumalanga, and Ngqura planned with the aim of handling dry and liquid bulk cargo. The regional grouping of old and new ports has resulted in a complementary ports system that maximises advantages of scale, avoids duplication and provides a logical distribution of port facilities to meet the national need. The ports and their hinterlands are connected by an integrated rail system consisting of high volume port-rail corridors, port and over-border interconnections, and high volume feeders. 1.2 Port planning principles The key port planning principles are to guide the development of comprehensive plans, which are balanced and flexible enough to adapt to each port s infrastructure and operational needs over time. The following general planning principles were used to inform the development of South Africa s long-term port plans: Develop a complementary ports system with a regional grouping of old and new ports to provide a national range of facilities to meet local and hinterland demand, and avoid duplication of investment; Optimise capital investment across the ports system to meet the long-term national demand for freight throughput, and to meet the requirements of Transnet, the National Ports Act, and South Africa, and to ensure capacity meets demand; Align with the planning initiatives of local, provincial and national Government and other key stakeholders; Improve infrastructural and operational efficiencies and reduce transport and logistics costs; Zone port functions according to cargo types, and maximise available port space for berths, freight handling and operations; Develop back-of-port logistics areas to increase port capacity; Integrate and align port and rail capacity planning; Align port development planning with trends in shipping and equipment technology; Maintain the flexibility to respond to changing technological and economic conditions; and Respond to environmental opportunities and constraints in a sustainable manner. 1.3 Transnet inter-governmental engagements In order to give effect to the principles of cooperative governance and inter-governmental relations contemplated in Chapter 3 of the Constitution, Transnet s engagements with organs of State will be strengthened to ensure: effective oversight of Transnet infrastructure assets; coordination and promotion of joint planning with all organs of State; promote cooperative governance with organs of State in the national and international context; and conclude memorandum of understandings with organs of State. Transnet Group Planning together with Operating divisions will facilitate such engagements to achieve the desired objectives mentioned above. 120 LTPF 2014 LTPF 2014 121

1. Introduction 2. Port demand forecast 1.4 Key port planning trends and issues Recent trends and issues that influence long-term port planning have been identified as follows: Increase in international seaborne trade due to demand from emerging economies; Slow-down in resources required in developed economies; Worldwide trend towards greater specialisation, centralisation and economies of scale; Exponential increases in vessel and parcel sizes due to economies of scale in transporting cargo; Innovative regional and global port operational models such as hub and spoke system; Restructuring of logistics networks and improvement in dealing with hinterland congestion and intermodal transport links; Worldwide trend in declining road use, as rail becomes more competitive as a sustainable transportation mode; Port reforms due to high costs and constraints of port infrastructure, such as port governance restructuring and deregulation; Awarding of concessions to global terminal operators to improve productivity, efficiencies and profitability of ports; Advanced port operational systems and more efficient cargo handling equipment; Transport and handling of alternative forms of energy, such as liquified petroleum gas (LPG) and liquified natural gas (LNG); and The need for sustainability in infrastructure solutions, as well as increased stakeholder engagement on issues such as carbon footprint, cleaner technologies, green and eco-ports, health and safety, and end-user costs. 1.5 Key port development opportunities The main port development opportunities over the 30 year planning period will be assessed and discussed in more detail in this port development chapter. The key opportunities include: Saldanha Bay iron ore expansion; Saldanha Bay ship repair precinct; Cape Town container seaward expansion; Ngqura/Durban liquid bulk terminal to support Project Mthombo; Ngqura manganese export facility; Durban Container Terminal (DCT) Pier 1 Phase 2 expansion; New Durban Dig-out Port (DDOP); Richards Bay dry, liquid and break-bulk capacity expansion; and LNG import terminals in Saldanha Bay, Mossel Bay, Ngqura and Richards Bay. 2.1 National port demand The port component of the LTPF demand forecast is used as the basis for the annual update of the port capacity requirements and development plans. National The forecasts Port are summarised Tonnage by Forecast port well as by commodity. The commodities include minor and major dry bulk, break-bulk, liquid bulk and SBM crude, containers, vehicles. The major dry bulk export commodities such as coal, iron ore and manganese are reflected separately. Figure 4: National port tonnage forecast, total Million t ons 600 500 400 300 200 100 0 253 335 560 2014 2020 2043 Export Coal Export Iron Ore Container Tons SBM Crude Dry Bulk Liquid Bulk Export Manganese Break Bulk Automotive Tons The demand for each port is summarised in graphs and tables, illustrating 30 years: Previous year/base year 2013; Current year 2014; Seven-year forecast (as per the Corporate Plan); and 30-year forecast. The current year s national demand for all cargo is expected to be 253 million tons, increasing to 335 million tons in seven years (5% average per year) and 560 million tons in 30 years (3% average per year). Annualised average growth rates are provided for a particular interval, where applicable. 122 LTPF 2014 LTPF 2014 123

2. Port demand forecast National Port Demand Forecast National Port Demand Forecast (by cargo) Figure 5: National port tonnage forecast, by cargo and by port Million tons Million tonnes Million tons Million tonnes 140 120 100 80 60 40 20 0 200 180 160 140 120 100 80 60 40 20 0 National port demand, by cargo type Automotive Break Bulk Container Dry Bulk Export Coal Export Iron Ore Export Manganese Previous year National cargo tonnage, by port Seven-year forecast 30-year Forecast Liquid Bulk SBM Crude Cape Town Durban East London Mossel Bay Port Elizabeth Richards Bay Ngqura Saldanha Bay Mandela Bay The forecasts for manganese exports reflect strong growth (7% average over 30 years), good growth from container exports (4%) and more moderate growth rates are predicted for dry bulk, liquid bulk, automotive volumes and SBM crude (3%). Coal, iron ore and breakbulk export volumes are expected to grow at a lower rate (2%). Coal, manganese and SBM crude have significantly high growth rates over the initial seven-year period (4,7%, 16,4% and 11,5%) compared to lower growth rates over the remaining 30-year forecast of (1,2%, 3,8% and 0,5%). Figure 6: National port demand by cargo Break-bulk (Tons) Minor dry bulk (Tons) Coal export (Tons) The individual national cargo demand forecasts are discussed in more detail below. Individual port forecasts are discussed in the individual port development plans, in order to determine the capacity expansion requirements for each port. 2.2 Container demand The role of the container ports There are three major container terminals, the largest located in Durban, followed by Cape Town and then Port Elizabeth/Ngqura. The Port of Durban is defined as the premier gateway port for the Gauteng hinterland. Cape Town is defined as a limited gateway for timesensitive cargo from the west, which is destined for Gauteng. Ngqura is defined as a secondary gateway to Gauteng, as well as a transshipment port. Each of the container ports will continue to serve their respective local hinterlands, and Richards Bay and East London will continue to handle containers through their multi-purpose terminals until volumes justify dedicated facilities. Iron ore export (Tons) Manganese export (Tons) The map of South Africa with the three main container ports shows the spatial basis for the container strategy. The inner blue circles represent the respective sizes of the ports, in terms of the current container volumes handled, while the outer dashed circles represent the sizes of the container volumes in 30 years. The blue lines indicate the distances and therefore the relative importance of the inland transport connections to the Gauteng hinterland, the major economic hub. The importance of Durban, in terms of the size of its own hinterland and its proximity to Gauteng, is evident in the dominant market share the gateway port continues to maintain over the next 30 years (65,3% currently and 65,5% in 30 years). The Mandela Bay metro, consisting of the Port of Ngqura and Port Elizabeth, currently handles 14% of the national container demand, which increases to 17% over the 30-year forecast. 124 LTPF 2014 LTPF 2014 125

2. Port demand forecast Figure 7: Role of South Africa s container ports Dry Bulk Demand Forecast 2.3 Dry bulk demand The total volume of dry bulk handled nationally this past financial year was 168 million tons. The seven-year forecast predicts 221 million tons, with the 30-year forecast predicting 345 million tons. The current dry bulk demand is dominated by two ports, Richards Bay handling 55% (mainly coal) and Saldanha Bay handling 35% (mainly iron ore). The 30-year forecast projection sees Richards Bay reduce to 50% and Saldanha Bay decrease only slightly to 34% of the national dry bulk tonnage. Gauteng economic hub Figure 9: Dry bulk demand forecast Million tons 400 350 300 Saldanha Bay 65% 65% Durban 2014: 2,7 m TEU 2021: 3,7 m TEU 2044: 8,8m TEU 250 200 150 Richards Bay Port Elizabeth Ngqura Mossel Bay East London Cape Town 2014: 0, 9m TEU 2021: 1,1 m TEU 2044: 2,2 m TEU 20% 16% 14% 17% PE and Ngqura 2014: 0,8 m TEU 2021: 1,1 m TEU 2044: 3,0 m TEU Current demand 100 50 0 2014 2019 2024 2029 2034 2039 Durban Cape Town Container demand forecast: The total volume of containers handled nationally this last financial year was 4,5 million twenty-foot equivalent units (TEUs). The seven-year forecast predicts 5,8 million TEUs, with the 30-year forecast predicting 14,4 million TEUs. The current container demand is dominated by the Port Container Demand Forecast Figure 8: Container demand forecast Million TEUs 16 14 12 10 8 6 4 2 of Durban handling 65%. Cape Town currently handles 19% and between Port Elizabeth and the new terminal at Ngqura they handle 14%. The 30-year forecast projection sees Durban remain at 65% and Cape Town reduce to 16%, with the Mandela Bay metro increasing to 17%. Saldanha Bay Richards Bay Port Elizabeth Ngqura Mossel Bay East London Durban Cape Town 2.4 Break-bulk demand break-bulk Demand Forecast The total volume of break-bulk handled nationally this past financial year was 11 million tons. The seven-year forecast predicts 12 million tons, with the 30-year forecast predicting 18 million tons. The current break-bulk demand is dominated by two ports, with Durban handling 45% and Richards Bay handling 44% of the national break-bulk tonnage. The 30-year forecast projection sees Durban decrease to 28% and Richards Bay increase significantly to 60%. Figure 10: Break-bulk demand forecast Million tons 20 18 16 14 12 10 8 6 4 2 0 2014 2019 2024 2029 2034 2039 Saldanha Bay Richards Bay Port Elizabeth Ngqura Mossel Bay East London Durban Cape Town 0 2014 2019 2024 2029 2034 2039 126 LTPF 2014 LTPF 2014 127

2. Port demand forecast 3. Infrastructure capacity analysis 2.5 Liquid bulk and SBM crude demand South Africa accounts for 28% of the sub-saharan refined market, and 53% of total oil consumption. Privately operated liquid bulk terminals are located in each port. Total volumes of liquid products (SBMs and berths) are forecast to grow from 38,5 million kilolitres to 86 million kilolitres over 30 years. Durban currently handles the majority of liquid bulk volumes at 68% of the national total, followed by Saldanha Bay at 13%. In 2018 the Port of Ngqura will experience a large increase in SBM crude, increasing Nelson Mandela Bay s liquid bulk handled dramatically to 40% of the national total demand. Over the Liquid 30-year forecast, Bulk Demand Durban continues Forecast to be the dominant liquid bulk handling port with 57% of the market share, followed by the increased demand of Nelson Mandela Bay at 26%, and Saldanha Bay at a decreased 6%. The total liquid bulk demand is currently split equally between liquid bulk exports and SBM crude imports. In seven years SBM crude imports dominate the liquid bulk demand at 70%, which evens out again at the end of 30 years to 50%. Figure 11: Liquid bulk demand forecast Million tons 90 80 70 60 50 40 30 20 10 0 2014 2019 2024 2029 2034 2039 SBM Mossel Bay (crude) SBM Ngqura (crude) SBM Durban (crude) Mandela Bay Saldanha Bay Richards Bay Mossel Bay East London Durban Cape Town The infrastructure capacity analysis begins with an overview of the long-term vision of the South African port system. This is followed by a summary of the port status quos, and includes the number of berths, total berth lengths and national terminal capacities. The landside and waterside capacity is then assessed for each cargo type, for each of the current (seven-year), medium-term (30-year) and long-term (>30 years) plans. Then inland transport connectivity, port authority fleet requirements and a terminal equipment overview is summarised. The capacity analysis is then concluded with an assessment of current vessels and port capabilities with respect to the current port system. 3.1 Long-term vision of port system There are nine ports promulgated in South Africa under the Current National Ports port Act, system with Richards Bay the largest and Port Nolloth the smallest. According to the promulgation the ports fall under the jurisdiction of Transnet National Figure 13: Current port system Ports Authority (TNPA). The total landside area utilised by the ports is 6 100ha, and there is 30km of quay wall across the port system. A land use analysis indicates that the older ports are more fully developed (Cape Town, Port Elizabeth, East London and Durban) and that the newer ports have large areas of developable land available (Saldanha Bay, Ngqura and Richards Bay). The potential for the ports to develop to their full capacity is indicated below in the series of current and long-term layouts. The fully developed port layouts include the new DDOP at the old Durban airport site. The newer ports offer massive development potential, and ambitious options are put forward for the landward or seaward expansion of the more established ports. The total port landside area in the long term is predicted to be 9 500ha, with an associated quay wall length of 80km, a growth over 160%. 2.6 Automotive demand Automotive Demand Forecast The total number of vehicles handled nationally this past financial year was 560 000 units. The seven-year forecast predicts around 650 000 units, with the 30-year forecast predicting 1,1 million units. The current vehicle demand is dominated by Durban, Port Elizabeth and East London each handling 69%, 20% and 11% respectively. Cape Town makes up a very small if somewhat negligible percentage of the market share. Figure 12: Automotive demand forecast Millions 1.40 1.20 1.00 0.80 0.60 0.40 0.20 Saldanha Bay Richards Bay Port Elizabeth Ngqura Mossel Bay East London Durban Cape Town 0.00 2014 2019 2024 2029 2034 2039 128 LTPF 2014 LTPF 2014 129

3. Infrastructure capacity analysis Long-term vision of the port system Figure 14: Long-term vision of the port system This summary of waterside capacity is based on the current, medium-term (30-year) and long-term (>30 years) development plans for each port. It categorises shallow, medium and deep draft berths, measured in metres of berth length. Current capacity is 30km of berth length, of which more than 50% is shallow berths in the older ports. The existing 7,5km (25%) of deepwater berthing is confined to the newer ports of Richards Bay, Saldanha and Ngqura. The medium-term plans show the total length of berth increasing to 50km, with the percentage of deepwater berths rising to almost 50%. Increasing The long-term Vessel plans show and a major Equipment potential increase Sizes to 80km of quay wall, two-thirds of which would be deepwater berths. Figure 15: Increasing vessel and equipment sizes The dual challenge of deepening existing berths, and providing ever deeper new berths, is a major component of the port development framework plans. Increasing vessel sizes: A dramatic increase in the size of container vessels and ship-to-shore cranes since the introduction of containerisation in the 1970s has required the deepening and strengthening of existing quay walls. This is the challenge facing port planners in the older ports of Durban, Cape Town and Port Elizabeth, where the existing berths were built in the 1970s to suit small vessels and cranes. This has resulted in important berth deepening projects being undertaken at the container terminals in Cape Town and Durban, as well as being considered in Port Elizabeth. 1973 2014 3.2 National status quo summary There are currently 127 berths across the port system, equating to 30 kilometres of berth length. The largest number of berths are utilised for break-bulk operations (42 berths), followed by dry bulk (30 berths), containers (18 berths) and liquid bulk (16 berths). Richards Bay Coal Terminal (RBCT) has a capacity of 97mtpa, followed by liquid bulk terminals with a combined capacity of 89 million kilolitres and Saldanha Iron Ore at 60mtpa. All other dry bulk terminals have a combined national capacity of 44mtpa and break-bulk a combined capacity of 31mtpa. The national container handling capacity is 5 million TEUs per year, with vehicle handling capacity at 1 million units nationally per year. 3.3 Land use summary The National Ports Authority operates as a landlord port authority; planning, providing and maintaining port land and infrastructure. Port land is defined by the port limits. The port layouts show the development of the ports from their current status, through short-term (seven-year), medium-term (30-year) and long-term plans (>30 years). Land within port limits is zoned according to port land use categories. The principle land uses are those relating to freight activities: containers, vehicles, dry bulk, breakbulk and liquid bulk. Other non-freight land uses include ship repair, fishing, and maritime commercial, all of which require water frontage. Commercial logistics, open space and the National Ports Authority other (land use category used for unspecified port authority use or for future expansion) do not necessarily require water frontage. 3.4 Waterside capacity summary Port waterside capacity, measured in terms of berth length and berth depth, is the most basic component of the port capacity plans. The port development layouts are premised on growth in waterside capacity to provide for growing freight demand, planned in conjunction with growth in landside capacity. In addition, secondary capacity is also required in terminal freight handling operations, back-of-port support activities, and inland transport connectivity (by road, rail and pipeline). Two major challenges face the port planners the requirement to adapt existing port waterside capacity to cope with new and larger vessel types, and the requirement to expand to new areas to provide large new tranches of waterside capacity. The first challenge naturally affects the older ports. East London is an example of a port that is not easily able to adapt due to the very restrictive river basin site of the port. East London also has limited opportunity to expand to new areas suited to the development of new waterside capacity. Even the newer ports of Saldanha Bay, Ngqura and Richards Bay have environmental and social constraints, which limit further expansion of their port limits. DCT North Quay at current depth of -12,8m with Alphen class vessel and quayside cranes as per original design The existing North Quay berths at DCT have a current depth of -12,8m CD. After deepening, the depth of the berths will be -16,5m CD. This will enable the Port of Durban to handle fully laden 9 200 TEUs container vessels that are at the limit of the entrance channel. All new container berths in the port system are being designed to the standard -16,5m CD, although consideration is being given to accommodating even larger vessels in the new DDOP. DCT North Quay at -16,5m after deepening and widening, with 9 200 TEU vessel and mega-max tandem lift STS cranes 3.5 Container capacity summary Container capacity planning was undertaken over the 30-year planning period, for the three main container terminals. The red demand line indicates the forecast container demand in TEUs, as per the LTPF demand 2014 (MDS aligned). The coloured bands reflect the timing and capacity gains of successive medium-term development plans for each container terminal. Short-term capacity planning, to accommodate maintenance and sustaining interventions, has not reflected in the below 30-year capacity planning. 130 LTPF 2014 LTPF 2014 131

Scenario 3 3. Infrastructure capacity analysis lanning Durban s container development includes the following medium-term capacity options, to meet forecast demand over the 30-year planning period: Pier 1 Phase 2 Lite with capacity gain of +0,5 million TEUs, coming online in year 2019; Pier 1 Phase 2 Infill with capacity gain of +1,8 million TEUs, coming online in year 2022; and Durban dig-out port phase 1 with capacity of 2,45 million TEUs, coming online in year 2025 (fast track schedule). With these three expansion options, there are three broad development scenarios (see figures below): Scenario 1: Pier 1 infill with DDOP phase 1; Scenario 2: Pier 1 lite with DDOP phase 1; and Scenario 3: No Pier 1 development, but with DDOP phase 1. Scenario 1 results in a 1,5m TEU cumulative shortfall over a four-year period and only requires DDOP by 2031. Scenario 2 results in a 0,2m TEU cumulative shortfall over a two-year period and requires DDOP by 2025. Scenario 3 results in a 1,5m TEU cumulative shortfall over a four-year period and requires DDOP by 2023, but the fast track schedule suggests that 2024 is the earliest. Figure 17: Durban container planning Scenario 3 No Pier 1 expansion Scenario 3 No Pier 1 expansion: DDOP Ph 1 by 2024 2 berths 2 berths Figure 16: Durban container planning Scenario 1 and 2 Pier 1 expansion options Berth Deepening Scenario 1 Pier 1 Infill: DDOP Ph 1 by 2031 2 berths 2 berths Pier 1 Ph 2 Infill b a Cape Town container planning Berth Deepening Cape Town s container development includes the following medium-term capacity interventions, to meet forecast demand over the 30-year planning period: Completion of expansion phases 1 and 2 with capacity gain of +0,7 million TEUs; and Seaward terminal expansion with capacity gain of +0,5 million TEUs. Figure 18: Cape Town container planning Scenario 2 Pier 1 Lite: 2 berths Pier 1 Ph 2 Lite DDOP Ph 1 by 2025 2 berths 2 Berth Deepening Nelson Mandela Bay s container development includes the below short-term capacity interventions, as included in the current corporate plan. Due to the large volume of transshipments moving through Ngqura, a demand forecast excluding transshipments is also shown. Ngqura berths 3 and 4 completed with capacity gain of +1,5 million TEUs; and Port Elizabeth Terminal expansion with capacity gain of +0,3 million TEUs. 1 132 LTPF 2014 LTPF 2014 133

Port Elizabeth and Ngqura Container Planning 3. Infrastructure capacity analysis Figure 19: Port Elizabeth and Ngqura container planning 3.6 Dry bulk capacity summary The Iron Ore Terminal at Saldanha Bay currently has two berths and stockpiles with a capacity of 60mtpa. Expansion projects will increase this capacity in increments to 82,5mtpa over the short term and then to 120mtpa in the medium term. This expansion would add an additional two berths to the terminal and increase the landside stockpile area from 73ha to 121ha. The Cape Town dry bulk terminal in Duncan Dock currently has two dedicated berths with a current terminal capacity of 2,1mtpa. No future expansion development plans for dry bulk are being considered. The Port Elizabeth manganese export terminal has a single berth and a current capacity of 6mtpa. This terminal will be decommissioned in 2018 and relocated to the new terminal in Ngqura. A new manganese export terminal is planned for Ngqura, with an initial capacity of 16mtpa in 2019 and stepping up to 22mtpa by 2022. The Development Framework Plan makes provision for additional terminal facilities in the longer term along berths in the river basin, to meet the future requirements of the Industrial Development Zone (IDZ) and hinterland. The Port of East London currently operates a one-berth dry bulk terminal with a capacity of around 2,2mtpa, stepping up to 4mtpa in anticipation of potential coal export volumes in the medium term. In Durban, the total dry bulk handlding capacity is 11mtpa, which includes: Bulk Connections on the Bluff handling coal and manganese, Maydon Wharf, Rennies Bulk Terminals, the Agriport terminal handling grain and woodchip products, and the Durban Bulk Shipping at the Island View complex. Dry bulk capacity is expected to increase to 13mtpa. Richards Bay is South Africa s premier dry bulk port, with a coal export terminal with a capacity of 110mtpa. Richards Bay Coal Terminal s (RBCT s) capacity is planned to be maintained over the 30-year planning period. Other dry bulk handling capacity is 21mtpa, made up of: dedicated woodchip export berths, and general purpose break-bulk berth. Other dry bulk capacity is planned to be increased to 51mtpa by 2043. 3.7 Break-bulk capacity summary Port Terminals break-bulk and multi-purpose terminals are located in all ports, handling a range of generally palletised and skiptainer cargoes and mineral and agricultural products. Port Terminals has 65% market share in break-bulk cargoes, and faces increasing competition from private terminals. Initiatives to increase market share include efficiency improvements, sustainable handling methods and attractive pricing initiatives. The break-bulk facilities in the older ports and terminals are operating at below capacity, and there are proposals to rationalise these and to increase container handling. The shallow older berths and limited landside space restricts their effectiveness for modern port operations. The Maydon Wharf quay wall is being rebuilt to address this issue. The Richards Bay Multi-purpose Terminal is being modernised and expanded as an outcome of the Richards Bay Capacity Expansion Programme. The development of IDZs in Saldanha Bay, Ngqura, East London and Richards Bay will generate break-bulk and neo bulk cargoes, although the exact nature of the infrastructure required is not presently known. Provision has been made in the port development plans for this, and the development of a general cargo terminal in Ngqura is progressing. 3.8 Liquid bulk capacity summary Feasibility studies are being conducted for LNG terminals in Saldanha, Ngqura and Richards Bay. The section 56 process for the Ngqura liquid bulk terminal is progressing, with new berths and a tank farm planned. These will replace the Port Elizabeth facility, which will be decommissioned once Ngqura is operational. Imports through Island View in Durban to feed the coastal terminal of the NMPP will require ongoing upgrades to the loading and storage facilities of the existing Island View berths. The new DDOP will be able to provide liquid bulk handling capacity, and will include deepwater berths in the port entrance. 3.9 Automotive capacity summary Port Terminals operates car terminals handling automotive cargoes in Durban, East London and Port Elizabeth. There is currently adequate capacity to serve the forecasted volumes, and only additional capacity is required in the Port of Durban over the 30-year planning period. The Durban Ro-Ro Terminal has three berths with a capacity of 520 000 units. The East London Car Terminal has one berth with an operationally reduced capacity of 200 000 units. The Port Elizabeth terminal has one berth with a capacity of 410 000 units. All three terminals have the ability to expand in their current locations to handle demand in the medium to long term. There is the potential to relocate the Port Elizabeth terminal to the southern side of the port once the manganese terminals have been decommissioned. There is also the potential to relocate the Durban car terminal to a new position at the DDOP. This will address the limited road and rail capacity of the existing Durban Point terminal. 3.10 Non-freight sector requirements The non-freight sector represents non cargo-based services offered by South Africa s ports. These include passenger terminals, ship repair facilities, oil and gas offshore supply bases, fishing and navy accommodation. Passenger terminals South Africa has a developing cruise liner industry. Passenger terminal demand has two components, one being seasonal local cruises with peaks in the summer months, and the second, ad hoc visits from international cruises. There is currently one dedicated passenger terminal in South Africa, in Durban (at N Berth), with MSC having home port bases in both Durban and Cape Town. Cape Town has future plans for a dedicated passenger terminal at E Berth, while Durban has future plans for relocating the existing cruise liner terminal to A and B Berths in the Point precinct (both based on section 56 on the Port Regulation). The National Ports Authority may provide dedicated berthing facilities from existing port infrastructure, but will not invest in new terminals. Passenger vessel calls to Durban currently operate from the N-shed berth (quay length = 250m). The Port of Durban s annual passenger numbers reached 160 000 in 2011. The port s development plans do allow for the provision of a new, dedicated passenger terminal (quay length = 700m) at A and B berth in the Point precinct, which will offer a competitive cruise terminal. The passenger numbers are projected to peak at approximately 450 000 in 2025. Passenger vessel calls to Cape Town currently operate from Duncan Dock (quay length = 250m). The Port of Cape Town s annual passenger numbers reached approximately 20 000 in 2011. The port s development plans allow for the provision of a new, dedicated cruise terminal (quay length = 700m) at Berth E, which will offer a competitive cruise terminal. The passenger numbers are projected to peak at approximately 350 000 in 2025. There are no future plans for dedicated terminals in Richards Bay, Port Elizabeth, Mossel Bay, East London and Saldanha Bay. Cruise liners visiting these ports will continue to use available infrastructure on arrival. The combined annual passenger volumes for these ports reached approximately 27 000 in 2011. Ship repair facilities South African ports ship repair industry offers onshore (and at times offshore) industrial services to ship owners to improve operational efficiencies and earning potential in line with the International Maritime Organisation (IMO) regulations. The global ship repair industry is dependent on scheduled maintenance work from either passing ships or ships calling into the port, but there is significant growth in unscheduled maintenance work largely due to marine incidents, breakdowns, etc. South Africa s ship repair industry has been declining over the last decade mainly because of the fragmentation of the ship repair industry. This has been on the backdrop of growth of 34% worldwide for the period 2004 to 2012. This period has also seen a loss of 20% to 30% in ship repair capacity with the conversion of ship repair facilities to ship building facilities. Some of the factors resulting in the fragmentation of the ship repair industry include type and size of ships, trade routes, ship repair capacity and costs, etc. Most of the ships that are currently being repaired in South African ports are local and foreign trawlers, harbour, research and patrol vessels and some oil and gas rigs. South Africa currently has ship repair facilities at the Ports of Cape Town and Durban, with minor facilities at the Ports of East London, Port Elizabeth and Saldanha. The Port of Durban is equipped to handle ship repairs through a mixture of private and National Ports Authority operated facilities. The ship repair facilities comprise a 352m x 34m wide graving dock and three floating docks (254m x 47m wide with lifting capacity of 13 000 tons). With the projected container traffic, the Port of Durban plans to provide an additional dry dock (300m x 50m wide), two new floating docks, synchrolifts, an oil rig repair booth and additional landside area (240 000m 2 ). The Port of Cape Town is equipped to handle ship repairs through a mixture of privately- and National Ports Authority-operated facilities. The ship repair facilities comprise a 370m x 45m wide graving dock (Sturrock Dry Dock) and a 161m x 21m wide dry dock (Robinson Dry Dock). In addition to these facilities, the Port of Cape Town has a synchrolift with lifting capacities up to 1 800 tons, a repair quay at Duncan Dock, Berth A (privately run for ship repair) and a series of berths in the V&A Waterfront basin dedicated to ship and boat repairs. The Ports of Richards Bay, East London, Port Elizabeth and Saldanha have no dedicated ship repair facilities, with most ship repair work occurring along the quays, to generally smaller vessels. South Africa s ports are facing stiff competition from other ports in the region, which are refurbishing or building new facilities to capture the market of ships navigating around the African coastline. However, shipbuilding companies in the Asian markets are interested in building ship repair facilities at one of South Africa s eastern ports, selected because of its proximity to the mainstream cargo market. Ngqura has experienced exceptional pressure from the Coega Development Corporation and the Nelson Mandela 134 LTPF 2014 LTPF 2014 135

3. Infrastructure capacity analysis Bay Business Forum to allocate land and infrastructure capacity inside the port for the ship repair industry. The Coega Development Corporation has been identified as an attractive location and major economic opportunities provided by this industry are also aligned with the strategic objectives of the Nelson Mandela Bay region. The National Ports Authority will commence with a project on ship repair facilities at the Port of Ngqura, however, they have not progressed the study further than an FER /FEL 1 level. Oil and gas offshore supply bases Offshore supply operations currently operate in the ports of Saldanha Bay and Mossel Bay. Significant demand exists for offshore supply bases along the South African coastline, with Saldanha Bay IDZ planning a dedicated offshore base for the oil and gas industry. Fishing facilities The commercial fishing industry in South Africa accounts for 0,5% of the GDP, which translates to 43 000 direct jobs. In South Africa, 90% of the landings occur at Western Cape harbours (Ports of Cape Town and Mossel Bay). Long-term rights have been issued in 22 fishing sectors to 2 900 rights holders and 1 788 vessels. There was, however, a decline in fishing volumes from the peaks of the 2008/09 financial year to date (inferred from GDP figures). The Ports of Cape Town, Durban, Mossel Bay and Port Elizabeth have dedicated fishing facilities, with a total area of 18ha. There are currently plans to provide more facilities up to 75ha in the long term. Navy facilities The South African Navy (SAN) currently operates a naval base in Simons Town and naval stations in both the Ports of Durban and Port Elizabeth. The Port of Durban currently has a naval station at Salisbury Island with basic dockyard facilities. The SAN is considering plans to relocate some of its naval fleet to the naval station (which will then require it to be upgraded to a naval base) to deal with the threat of piracy on the east coast of Africa. Transnet has plans to relocate the SAN naval facility from the Salisbury Island to other locations in the port to allow the development of a container terminal at this location. But SAN would require facilities to accommodate the largest ship in her fleet viz. the SAS Drakensberg (length = 147m, beam = 20m, draft = 7,5m, displacement 12 500DWT), as well as the more recently acquired naval frigates and submarines. Port Elizabeth harbour has been established as a naval station, but there are currently no ships docked at the harbour. It is not envisaged that the SAN will require additional facilities at the port. Port of Cape Town does not have dedicated naval facilities, but has in the past docked navy vessels from the United States, Pakistan, Indian and Brazilian Navies at the V&A Waterfront basin. There are no plans to provide new facilities for the South African Navy, as the proposed port developments will accommodate these ships, especially the larger United States Navy vessels, should they call in the future. Most of the naval vessels dock at Simon s Town harbour close to Cape Town, which is the SAN s naval headquarters. Port development of Simon s Town harbour is the responsibility of the Department of Public Works. 3.11 Inland transport connectivity From a spatial planning perspective, there is a critical need for the ports to provide efficient rail facilities to allow access to competitive rail transportation, which will support the move from road to rail. Each port has well-developed rail infrastructure providing rail connectivity to the hinterlands and to adjacent regional ports. Rail infrastructure within the port limits is generally owned by the National Ports Authority and operated by Freight Rail. This includes in-port rail lines, yards and terminals. The Sishen-Saldanha heavy haul line terminates at the iron ore export terminal at Saldanha Bay. The Port of Cape Town is linked to Gauteng by the Cape Corridor. This handles a range of general freight cargo and containers. Port Elizabeth and Ngqura are similarly linked to the Gauteng hinterland by the Central Corridor, which also handles a range of general freight and containers. The export of manganese ore from Hotazel in the Northern Cape also uses this corridor, and East London is connected to it at De Aar. The Natal Corridor serves to connect the Port of Durban with Gauteng, and the North Coast line connects Durban to Richards Bay. The Richards Bay Corridor is a heavy haul line used primarily for the export of coal. The port rail corridors meet in Gauteng, where a planned rail ring will allow for a seamless connectivity between corridors, City Deep in Gauteng and other inland terminals, including in future Sentrarand. Over-border rail corridors to Namibia, Botswana, Zimbabwe and Mozambique also connect to the Gauteng rail ring, ensuring that the ports are integrated into a comprehensive regional rail network. The proposed Swazi rail link will increase capacity and provide flexibility for freight moving through both Richards Bay and Maputo. The ports are generally well connected to the national and regional road infrastructure. The N2 links all the ports from Cape Town to Richards Bay along the coastal route. The N1 from Gauteng to Cape Town and the N3 from Gauteng to Durban are the primary port road corridors. Port Elizabeth and Ngqura connect to the N1 via the N10, and East London via the N6. Planning is being undertaken with local, provincial and national road agencies to ensure alignment of port, rail and road planning. 3.12 Port Authority fleet requirements The National Ports Authority s fleet plan consists of an assessment of the current fleet, of seven-year plans and a projection of the 30-year fleet expansion requirements based on future development as laid out in the Port Development Framework Plan strategy. The fleet types under consideration include pilot boats, helicopters for pilot transfers, tugs, work boats, launches, floating cranes and corporate craft. The specifications of each of these vessels are summarised. Additionally, vessels used by dredging services and vessels operated by private operators for vessel mooring operations have been included. The fleet requirements consider the vessels required for port expansions. The fleet requirements are aligned with the National Ports Authority Marine Craft Management Plan Revision 6. Port Authority Fleet Planning The current fleet requirements: 75 marine craft of which 30 craft are harbour tugs and three tugs are operated by private operator. Over the next 30 years, 33 marine craft will be required, because of port expansion. This number includes all the craft requirements for the DDOP. The redeployment of harbour tugs is not considered in this marine fleet assessment. Figure 20: Port Authority fleet planning Pilot boat specifications Type: conventional twin screw Propulsion: 2 x 550kw Length overall: 27m Beam: 8m, draft: 1,8m Helicopter specifications Type: eight seater multi-purpose helicopter Propulsion: 2 x 440kw twin-engine Tug specifications Type: Voith Schneider Propulsion: 2 x 2 640kw Bollard pull: 80 tons Length overall: 31m Beam: 11,5m, draft: 6,2m Fleet planning methodology: Review existing fleet size Review workload of existing marine craft Ensure effective fleet management Craft lifespan to be taken as 35 years Dredger specifications Type: trail suction hopper Propulsion: 2580kw Length overall: 111m Beam: 18m, draft: 8m Workboat specifications Type: twin screw Propulsion: 2 x 522kw Length overall: 17,6m Beam: 6m, draft: 2,8m Launch specifications Type: single screw Propulsion: 1 x 272kw Length overall: 11.1m Beam: 2,9m, draft: 0,8m Determine bollard pull requirements Review propulsion requirements Align with Port Development Framework Align with Marine Craft Management Plan 136 LTPF 2014 LTPF 2014 137

3. Infrastructure capacity analysis Port Authority Fleet Requirements Major Terminal Equipment Figure 21: Port Authority fleet requirements Figure 22: Major terminal equipment Port Type Current fleet Seven-year Expansion (E) Sustaining (S) 30-year Expansion (E) Sustaining (S) Port Type Current Fleet Seven-year Expansion (E) Sustaining (S) 30-year Expansion (E) Sustaining (S) Ship-to-shore Rubber tyred gantry Rail mounted gantry Saldanha Bay Tugs Pilot boat/workboat Launches 4 2 1 4 (S) 1 (S) 1 (S) 2 (E) 1 (S) Durban dig-out Tugs Pilot boats Helicopters 5 (E) 2 (E) 1 (E) Cape Town Mossel Bay Port Elizabeth Ngqura East London Tugs Pilot boats Floating cranes Launches Workboats Launches Workboats Offshore tug (private) Tugs Pilot boats Launches Workboats Tugs Pilot boats Tugs Workboats 4 2 1 4 2 1 1 1 2 1 1 3 1 2 1 1 (E) + 2(S) 2(S) 4 (S) 2 (S) 2 (S) 1 (S) 2 (S) 4 (E) + 2(S) 1(S) 1 (S) 1 (S) 1 (S) 2 (E) 1 (S) 3 (E) 1 (E) + 1 (S) 1 (S) Durban Richards Bay Dredging services Tugs Pilot boats Helicopters Floating cranes Corporate launch Workboats Launches Offshore tug (private) Tugs Pilot Boats Helicopters Workboat Suction dredgers Grab dredgers Launches 10 2 2 1 1 3 4 2 5 1 1 1 3 1 4 1(E) + 6 (S) 1 (S) 2 (S) 2(E) + 2 (S) 1 (S) 8 (E) + 4 (S) 1 (S) 1 (S) 1 (S) 1 (S) 1 (S) 2 (S) 1(E) + 1 (S) 1 (S) 1 (S) 1 (S) 1 (S) 4 (S) Bulk ship loader Break-bulk handling Straddle carrier Type Current fleet Seven-year Expansion (E) Sustaining (S) 30-year Expansion (E) Sustaining (S) Summary Stacker reclaimer Total Tugs Pilot Boats/workboats Helicopters Floating cranes Launches Dredgers Offshore tug (private) 30 18 3 2 15 4 3 4 (E) + 18 (S) 8 (S) 7 (S) 25 (E) + 7 (S) 3 (E) + 8 (S) 1 (E) + 2 (S) 2 (S) 8 (S) 2 (S) 1 (S) 75 4 (E) + 33 (S) 29 (E) + 30 (S) Current fleet: 75 craft Sustaining: 63 craft Expansionary: 33 craft Fleet in 30 years: 108 craft 3.13 Terminal equipment overview Transnet Port Terminals operates 19 terminals across seven of Transnet s nine ports. These are in four major freight handling sectors: containers, dry bulk, break-bulk and automotive terminals. The terminals require various types of cargo handling equipment, from large ship-to-shore cranes, bulk ship loaders and stacker reclaimers, to medium sized rubbertyred gantries, rail mounted gantries, harbour cranes, mobile cranes and straddle carriers, to smaller forklifts, truck and trailers and reach stackers. Port Terminals strategic initiatives include: optimised capital spend to improve productivity and efficiency, growing revenue through new business opportunities, and the creation of capacity ahead of demand. To this end, significant equipment is required over the next 30 years, for sustaining and expansionary purposes, as described below. 138 LTPF 2014 LTPF 2014 139

3. Infrastructure capacity analysis TPT Equipment Required over 30 Years, by Type Vessel Sizes and current Port Capabilities Figure 23: Terminal equipment required over 30 years Figure 24: Vessel sizes and current port capabilities Equipment 0-7 years 8-20 years 20-30 years Units Vessel Side view Dimensions (LOA x beam x draft) SB CT PE Ng EL Dig - out Dbn RB Ship-to-shore cranes 46 36 28 110 Rubber tyred gantries 124 148 56 328 Container: Feeder 3 000 TEU 210m x 30m x 11,0m ü ü ü ü ü ü ü Rail mounted gantries 15 6 10 31 Straddle carriers 157 0 0 157 Container: Panamax 4 500 TEU 240m x 32m x 12,0m ü ü ü ü ü Mobile harbour cranes 10 3 0 13 Bulk cranes 15 6 0 21 Container: Post Panamax 6 600 TEU 305m x 40m x 14,0m ü ü ü ü Reach stackers 43 0 0 43 Haulers 551 114 0 665 Trailers 466 80 0 546 Container: Ultra large 15 000 TEU 400m x 59m x 15,5m ü ü Number of Number of Dry bulk: Handysize 35 000t Dry bulk: Panamax 80 000t 177m x 28m x 10,0m ü ü ü ü ü ü ü 225m x 32m x 13,0m ü ü ü ü Dry bulk: Cape size 180 000t 289m x 45m x 18,0m ü Liquid bulk: Handymax 50 000t 183m x 32m x 11,0m ü ü ü ü ü ü ü ü Liquid bulk: Suezmax 175 000t 300m x 43m x 16,5m ü ü 3.14 Vessel sizes and port capabilities The current and future vessel sizes are derived from an analysis of global current and future vessel trends. The vessel types include container vessels, dry bulk and liquid bulk vessels. These vessel types reflect the major contributions to GDP in terms of cargo freight in the South African port system. Vessel sizes and port capabilities current and medium term: The maximum design vessels for container, dry bulk and liquid bulk vessels typically visiting South African ports are summarised for the current and medium term. This summary provides the critical dimensions of the vessels, and indicates the ports that are currently able to accommodate each vessel and which are subject to port expansion projects in the medium term. The criteria for assessing the suitability of a vessel depends on the physical constraints of the navigational channels and berth depths as well as the capabilities of the port in terms of material handling equipment. While some ports will accommodate larger vessel sizes in a partly laden condition, the criteria for physical constraints only consider the maximum vessel in a fully laden condition. The maximum container vessel, the ultra large container ship, can only be accommodated in the Port of Ngqura and can be accommodated in the proposed DDOP at the old Durban airport site. The largest dry bulk carrier, the Cape Size bulk carrier, can only be accommodated in the ports of Richards Bay and Saldanha Bay. The maximum liquid bulk carrier, the Suezmax tanker, can only be accommodated in the Port of Saldanha Bay and in the future in the proposed DDOP. The material handling equipment for the proposed DDOP has been assumed to meet the requirements of the maximum design vessels. The maximum design vessel at the Durban SBM is a very large crude carrier or VLCC. Typically, a VLCC has a capacity of 300 000t and is approximately 330m in length with a draft of 22m. The below figure summarises the current vessel calls at South Africa s eight commercial ports. Durban records the highest vessel calls at 3 900 vessels per year, Cape Town receives 2 400 vessels per year, while Richards Bay receives 1 900 vessels per year. 140 LTPF 2014 LTPF 2014 141

3. Infrastructure capacity analysis Typical Vessel Call Distributions, by Port Figure 25: Typical vessel call distribution Call distributions by port 4000 3500 Vessel calls per year 3000 2500 2000 1500 1000 500 0 Richards Bay Durban East London Ngqura Port Elizabeth Mossel Bay Cape Town Saldanha Bay 4. Individual port development plans Saldanha Bay Role of Port 4.1 Port of Saldanha Bay Figure 26: Aerial view of the Port of Saldanha Bay Call distributions by port and vessel size Vessel calls per year 4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 Small Size (120m) Handysize (160m) Handymax (180m) Panamax (230m) Post Panamax (260-300m) Cape Size or Super Post Panamax (300-350m) Very Large Bulk/Crude or Ultra Large Container Ship (330-400m) Richards Bay Durban East London Ngqura Port Elizabeth Mossel Bay Cape Town Saldanha Bay Role of the port The Port of Saldanha Bay is South Africa s deepest draft port and handles around 65 million tons of cargo per year, with the 30-year forecast predicting around 124 million tons of cargo per year. The iron ore export jetty provides berthing for two very large bulk carriers (VLBCs), as well as one liquid bulk berth for VLCCs for the import of crude oil. The port has iron ore stockpiles on reclaimed land, a multi-purpose terminal with four berths, and ship repair facilities for offshore rig servicing and fabrication. The port was initially conceived as an iron ore export facility in order to exploit the discovery of high-grade ore at Sishen in the Northern Cape, 860km to the north east of Saldanha Bay. The first shipment was loaded in 1976 and current levels of export are in the region of 54 million tons per year, which are carried by some 300 vessels per year to North and South America, Europe, Asia and the Middle East. The port also imports around 4,8 million kilolitres of crude a year, transported by around 30 vessels. The short-term port expansion will require extensive land acquisition and limited reclamation in the short and medium term. The port is focused on increasing its capacity for iron ore exports, with two additional berths and an increased stockpile area in the medium term. The port has the potential to expand its waterside and landside infrastructure to support the proposed industrial development zone. The proposed first phase of the IDZ includes facilities for the oil and gas industry, in the form of cargo handling and repair facilities. The Port of Saldanha Bay occupies an area of considerable ecological diversity and is surrounded by a complex socio-economic environment, which requires careful management of activities and careful planning of future infrastructure development. Metro context The Port of Saldanha Bay is on the eastern side of the bay, while the port s 4km causeway and trestle extends across the majority of the natural bay. The main port is currently surrounded by restricted development and industrial land use areas. The tug harbour (small craft harbour) is located on the western side of the bay, and is adjacent to the military base. In the long term, the proposed IDZ sees the development of a large area north of the port, adjacent to the existing Transnet land currently used for iron ore trains. Also in the long term, residential land on the way to Vredenburg, to the north east of the port and adjacent to the IDZ, has been earmarked. 142 LTPF 2014 LTPF 2014 143

Saldanha Bay Metro Context Current Layout Saldanha Bay Status Quo Figure 27: Saldanha Bay metro context Figure 28: Saldanha Bay status quo port layout VREDENBURG SALDANHA IDZ BLUE WATER BAY DIAZVILLE MILITARY SALDANHA SALDANHA HARBOUR CLUB MYKONOS Status quo and vessel distribution Saldanha Bay has seven berths equating to 2 637m of berth length. Two berths make up the iron ore terminal, which has a current capacity of 60 million tons per year. The liquid bulk terminal is the second largest in the port, with one berth and a current capacity of 25 million kilolitres per year. The other terminals include a four berth multi-purpose terminal (3,3mtpa capacity), a general maintenance quay and the Mossgas ship repair facility. The average number of vessel calls for a typical calendar year is a total 500 vessels (or 1,5 vessels per day). The largest number of calls was approximately 300 vessels in the cape size range, with the majority being for iron ore export. 144 LTPF 2014 LTPF 2014 145

Saldanha Bay Demand Forecast Demand The 30-year demand forecast for Saldanha Bay is summarised in the figure below: Figure 29: Saldanha Bay demand forecast Cargo type 2013 2014 2015 2016 2017 2018 2019 2020 2023 2033 2043 Break-bulk (t) 551 778 568 652 586 395 604 711 623 590 643 072 663 144 683 846 749 932 1 021 027 1 390 060 Annual growth 3,06% 3,12% 3,12% 3,12% 3,12% 3,12% 3,12% 3,12% 3,13% 3,14% Dry bulk (t) 1 449 990 1 560 738 1 643 277 1 759 797 1 835 029 1 916 323 1 572 439 1 613 307 1 744 040 2 224 780 2 851 320 Annual growth 7,64% 5,29% 7,09% 4,28% 4,43% -17,94% 2,60% 2,65% 2,48% 2,54% Export iron ore (t) 54 150 448 58 050 600 59 880 600 59 880 600 59 880 600 63 524 800 70 024 800 70 024 800 70 024 800 89 637 664 114 743 789 Annual growth 7,20% 3,15% 0,00% 0,00% 6,09% 10,23% 0,00% 0,00% 2,50% 2,50% Export mangan. (T) 0 0 1 500 000 1 500 000 1 500 000 1 500 000 1 500 000 1 500 000 1 500 000 0 0 Annual growth 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% Liquid bulk (kl) 4 811 217 4 811 217 4 811 217 4 811 217 4 811 217 4 811 217 4 811 217 4 811 217 4 811 217 4 811 217 4 811 217 Annual growth 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% 0,00% Million Million tonnes tons 140 120 100 80 Million ton equivalent Saldanha Bay Demand Versus Capacity Demand versus capacity The demand versus capacity planning is summarised in the figure below: Figure 30: Saldanha Bay demand versus capacity Capacity (tons) Demand (tons) Capacity (tons) Demand (tons) 60 40 20 0 Break-bulk Bulk Dry Bulk bulk Export Iron iron Ore ore Export Manganese manganese Liquid Bulk bulk Saldanha Bay Previous year Seven-year forecast 30-year forecast Saldanha Bay s freight volumes are dominated by the iron ore export volumes through the iron ore terminal. The forecasts for iron ore export show growth from current volumes of 54mtpa to more than 115mtpa over a 30-year period. Liquid bulk demand remains at a steady 4,8mtpa throughout the 30-year forecast. The growth forecast for break-bulk and dry bulk cargo over the next 30 years is stable and relatively low (2% to 3%). No container or vehicle volume demands are forecast in the 30-year planning period. The iron ore terminal s current capacity of 60mtpa is forecast to increase in increments to a total of 82,5mtpa by 2021 with the third berth installed. By 2033, the demand forecast requires a new expansionary project to come online, being an additional fourth berth. The current four berth multi-purpose terminal has a capacity of 3,3mtpa capacity, which will be insufficient in the short term to meet the anticipated demand of shortterm manganese exports (1,5mtpa for nine years). If the export manganese demand does materialise, additional operational systems will need to be implemented to increase the throughput capacity of the existing four berths. 146 LTPF 2014 LTPF 2014 147

Current port layout The port is characterised by the iron ore export causeway/jetty, which projects some 4km into the bay, dividing the bay into Small Bay (Saldanha side) and Big Bay (Langebaan side). There are two iron ore dry bulk berths and a liquid bulk berth on the jetty, capable of handling vessels in excess of cape size. The iron ore stockpile is located at the root of the causeway on reclaimed land. An existing MPT terminal Saldanha Bay Current Layout on the Small Bay side of the jetty has four berths. Berth depths at the MPT range from -13 to -15m CD, and the jetty oil and bulk berths are at -23m CD. The Mossgas ship repair facility is 22ha in size and is located on the Saldanha side of the port. The Admin Craft Basin is on the town side of the bay, adjacent to the fishing harbour and naval base. Short-term port layout Short-term plans for the port include strategic land acquisitions to ensure improvements to the port access corridor, and to make sure that the future growth of the port is not restricted on the landside. The current Ore Line Expansion Project is planning expanded export capacity on the corridor and through the port to increase iron ore export capacity. In the short term this will require additional iron ore stockpiles (increased 22ha) and an Saldanha Bay Short Term Layout additional dry bulk berth along the jetty, with associated rail capacity expansions. In addition to the existing liquid bulk berth situated at the end of the jetty, a LPG multi-buoy mooring (MBM) facility and pipeline will be constructed in Big Bay. An oil and gas repair development is adding berthing to the Mossgas facility to provide capacity for oil and gas activities. Figure 31: Saldanha Bay current layout Figure 32: Saldanha Bay short-term layout 148 LTPF 2014 LTPF 2014 149

Medium-term port layout Medium-term plans for the port include the addition of a major energy cluster to the east of the port in association with the adjacent IDZ, which will initially require extensive landside storage infrastructure, and the construction of a new liquid bulk basin with outer breakwater on the Big Bay side of the jetty, with potential bunker and liquid bulk berths if demand requires. The MBM facility has the opportunity to be relocated to this new energy precinct/basin. Saldanha Bay Medium Term Layout Importing LNG is being considered across the national ports system and is included in Saldanha Bay s mediumterm plan. One of several options under consideration is a liquified natural gas (LNG) single point mooring (SPM) buoy on the Big Bay side of the jetty. The dry bulk terminal capacity will be extended, increasing by a further 26ha and with an additional berth, bringing the total number of dry bulk berths to four. Long-term potential port layout The long-term plan for Saldanha is mainly concentrated around the further development of the liquid bulk terminal capacity. The total number of liquid bulk berths has the potential to increase to six within the energy precinct/basin, and to two berths along the main jetty. Saldanha Bay Long Term Layout Depending on whether new cargo is identified, there are plans to extend the Multi-Purpose Terminal, and provision has been made for the development of a new three berth terminal should demand justify it. Figure 33: Saldanha Bay medium-term layout Figure 34: Saldanha Bay long-term potential layout Landside and waterside infrastructure capacity There is currently 536ha of land within the port limits, increasing to 776ha in the medium term. Currently, 73ha is occupied by dry bulk operations, 20ha by break-bulk, and 22ha by the ship repair activities. A large proportion of port land is undeveloped, and is zoned as open space or for other National Ports Authority usage. This comprises 426ha of the total and provides a basis for future port expansions and terminal development. The total waterside capacity is currently 2 494m of berth length (1 620m at >16m CD), increasing to 7 810m in the medium term (5 480m at >16m CD). Inland transport capacity The port is linked to the interior by the Sishen-Saldanha rail corridor, which provides access to the Northern Cape iron ore mines. There is a rail line to Cape Town, Cape Corridor and the Gauteng hinterland. The N7 provides access to the national road network, and liquid fuel pipelines connect the port to the off-site Strategic Fuel Fund (SFF) storage facilities and to the Cape Town refinery. 150 LTPF 2014 LTPF 2014 151

Cape Town Role of Port Cape Town Metro Context Current Layout 4.2 Port of Cape Town Figure 35: Aerial view of the Port of Cape Town Figure 36: Cape Town metro context CENTURY CITY EDGEMEAD BELLVILLE SEA POINT YSTERPLAAT KENSINGTON CAPE TOWN PINELANDS LANGA EPPING INDUSTRIA BONTEHEUWEL BELHAR Role of the port Cape Town is an established port in the western region, providing container, bulk and general cargo handling services to the Western Cape and its largely agricultural hinterland. The port handles around 12 million tons of cargo per year, with the 30 year forecast predicting around 26 million tons of cargo per year. The port provides much-needed ship repair services in the Western Cape region, and hosts local and foreign fishing fleets, oil rigs, cruise liners and recreational users. The much older basins of the port were developed into the Victoria and Alfred Waterfront and now fall outside of port limits, complementing the commercial port by providing berthing for smaller recreation and fishing vessels. The port is currently expanding the container terminal to handle larger vessels and increase throughput capacity. Short-term plans include a dedicated one berth passenger terminal and the development of 160ha of the Culemborg site for back-of-port commercial logistics. Medium-term plans include expanding the container stacking seaward and in the long-term plans include building an outer basin for an additional four berth container terminal, and five additional liquid bulk berths. It is anticipated that the Port of Cape Town will continue in its existing role as primary container and general cargo port for the Western Cape region, with the Port of Saldanha Bay playing a complementary role as the region s primary dry and liquid bulk port. Metro context The Port of Cape Town, seen in its metro context, is bordered by the city s commercial centre, Table Mountain to the south-west and the industrial area of Paarden Eiland to the east. Significant tracts of Transnet land are located to the south of the port s current boundary, offering potential synergy for back-of-port commercial or transport logistics. For the most part, the surrounding city land is zoned residential, with pockets of isolated industrial zones. TABLE MOUNTAIN NEWLANDS RONDEBOSCH ATHLONE M17 MANENBERG GUGULETHU CAPE TOWN INTERNATIONAL AIRPORT Status quo and vessel distribution Cape Town has 17 berths providing 3 851m of berth length. Four berths make up the container terminal, which has a current capacity of 900 000 TEUs per year. The break-bulk terminal is the largest in the port, with seven berths and a current capacity of 10,8mtpa, followed by liquid bulk with two berths and a current capacity of 3,4mtpa. The other terminals include dry bulk and a ship repair facility. Figure 37: Cape Town status quo port layout Cape Town Status Quo 152 LTPF 2014 LTPF 2014 153

The average number of vessel calls for a typical calendar year is approximately 2 400 vessels (or seven per day). The largest number of calls was 1 500 vessels in the small to handysize range, of which the majority were either fishing vessels or ships visiting for bunkering. The container terminal typically receives approximately 750 vessels, with the majority being post to super post panamax. Cape Town Demand Forecast Demand The 30-year demand forecast for Cape Town is summarised in the figure below: Figure 38: Cape Town demand forecast Cape Town Demand Versus Capacity Demand versus capacity The demand versus capacity planning is summarised in the figure below: Figure 39: Cape Town demand versus capacity Cargo type 2013 2014 2015 2016 2017 2018 2019 2020 2023 2033 2043 Automotive (unit) 1 510 1 382 1 234 1 106 1 049 1 003 878 769 516 195 142 Annual growth (8,48)% (10,66)% (10,42)% (5,10)% (4,45)% (12,44)% (12,44)% (12,43)% (3,16)% (3,10)% Break-bulk (t) 368 471 353 001 335 775 318 846 299 366 287 028 281 053 277 669 274 356 221 870 173 625 Annual growth (4,20)% (4,88)% 5,04% (6,11)% (4,12)% (2,08)% (1,20)% (0,15)% (3,15)% (1,91)% Container (TEU) 853 868 879 331 910 270 943 630 978 341 1 012 151 1 044 238 1 077 404 1 183 777 1 631 082 2 267 375 Annual growth 2,98% 3,52% 3,66% 3,68% 3,46% 3,17% 3,18% 3,19% 3,32% 3,37% Dry bulk (t) 680 146 687 391 694 074 700 521 709 057 717 491 728 839 742 527 789 893 972 843 1 208 967 Annual growth 1,07% 0,97% 0,93% 1,22% 1,19% 1,58% 1,88% 2,13% 2,08% 2,25% Liquid bulk (kl) 3 079 119 3 351 872 3 490 071 1 499 903 1 599 684 1 618 155 1 719 208 1 823 152 2 157 387 3 642 989 5 758 021 Annual growth 8,86% 4,12% -57,02% 6,65% 1,15% 6,24% 6,05% 5,58% 4,81% 4,68% Million Million tonnes tons 20 18 16 14 12 10 8 6 4 2 0 Million ton equivalent Automotive Break-bulk Bulk Container Dry Bulk bulk Liquid Bulk bulk Previous Year Cape Town Seven-year forecast 30-year forecast Container volumes are forecast to grow from 0,9 million TEUs in 2014 to 1,0 million TEUs by 2020, and to approximately 2,3 million TEUs by 2043. Dry bulk volumes are forecast to grow at a low rate from 0,7mtpa to 1,2mtpa over the 30-year period. Break-bulk volumes decrease over the 30-year forecast period, decreasing at a slightly greater rate over the initial seven-year period (0,28mtpa) and then decreasing only slightly after that to 0,17mtpa by 2043. Current liquid bulk volumes of 3,4 million kilolitres, mainly of petrochemical products, increase to 5,6 million kilolitres at the end of 30 years. Capacity (tons) Demand (tons) The container terminal s current capacity of 900 000 TEUs is planned to be increased in increments up to a total 1,4 million TEUs by 2019, to meet forecasted demand. By 2026, capacity is to be further increased to 1,9 million TEUs with the seaward expansion project, which will be sufficient until 2037, when a new tranche of capacity will be required. Demand (tons) The current dry bulk (2,1mtpa) and break-bulk (10,8mtpa) terminals have sufficient capacity for the 30-year planning period. The liquid bulk terminal has a current capacity of 3,4 million kilolitres, which will be sufficient until 2030, where after an additional berth will be required to meet demand. 154 LTPF 2014 LTPF 2014 155