Transnet who we are- by Transnet Port Terminals Chief Executive, Karl Socikwa
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Transnet is a South African state-owned company that operates ports, rail, pipelines, and other infrastructure. It has over 50,000 employees. Transnet plans to invest R300 billion over 7 years to expand rail, port, and pipeline capacity to meet growing demand. This includes R77 billion for ports. The Port of Durban is undergoing projects to increase container capacity from 700,000 TEUs to 1.3 million TEUs by 2016 and expand other terminals. A new port is also planned to be dug out of the old Durban International Airport site.
Transnet who we are- by Transnet Port Terminals Chief Executive, Karl Socikwa
- 1. TRANSNET
- 2. PAGEPAGE 1. Transnet - Who we are TABLE OF CONTENTS 1 2. Port complimentary system 3. Market Demand Strategy 4. Port infrastructure development 4. Future Plans
- 3. PAGEPAGE • 16 Cargo Terminals operating across 7 SA ports • Revenue 7 bn • Assets R12.3 bn • 6 210 employees Supporting 2 • 7 Commercial ports along 2 943km of coastline • Revenue R8.4bn • Assets R60.6 bn • 3 420 employees • 20 500 km of railway track • 182 million tons of freight • General freight & 2 heavy haul export lines • Revenue 27.6 bn • Assets R61.3 bn • 26 850 employees • Support TFR for rolling stock and TPT for lifting equipment maintenance • Revenue 11.2 bn • Assets R7.6 bn • 12 570 employees • 18 billion litres of petroleum products and gas through 3 000 km of pipelines, mainly to Gauteng • Revenue 2.1 bn • Assets R19.3 bn • 630 employees • R300 billion of capital investments over 7 years • CSI in Education, Health, Sport, Arts & Agriculture • Property Management • Transnet Schools Capital Projects Transnet Foundation Property Schools Transnet Pipelines (TPL) Transnet Engineering (TE) Transnet Freight Rail (TFR) Transnet Port Terminals (TPT) Transnet National Ports Authority (TNPA) PipelinesRailPorts Transnet – Who we are
- 4. PAGEPAGE Complimentary port system 7. Saldanha Bulk (Export iron ore), Breakbulk 6. Cape Town Containers, Breakbulk 4. Ngqura Containers 3. East London Containers, Breakbulk, Agri-Bulk, Automotives 1. Richards Bay Bulk (Export coal, magnetite, Chrome) Breakbulk 2. Durban Containers, Breakbulk, Agri-Bulk, Automotives 5. Port Elizabeth Containers, Breakbulk, Bulk, AutomotivesWESTERN CAPE PORTS EASTERN CAPE PORTS KZN PORTS 3 Cargo handled in 2013/14 4.5 Million Containers 77.1 Million Tons of Bulk Cargo 11.2 Million Tons of Break-Bulk 0.7 Million New Automotive Vehicles
- 5. PAGEPAGE 4Source: Africa Team analysis TRANSNET’S Market Demand Strategy 2014 to 2020 • R300bn Transnet-wide capital investment programme over next 7-years • 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 • R77bn will be invested in ports Divisional split (Rbn) 11 30 47 4 201 4 Other TPL TPT TNPA TRE TFR Other Commodity Split (Rbn) 30 26 39 24 25 32 151 OtherBulk Break Bulk Piped Products Containers (Ports) Export Iron Ore Export Coal GFB
- 6. PAGEPAGE 5Source: Africa Team analysis Civil / Infrastructure vs Cargo Handling Equipment TPT 7-year Capex Programme (R30bn): TPT Year 1 (2013/14) Forecasted spend (R 1,859m): Infra vs. Equipment, Port View, Replacement vs. Expansion Cargo Handling Equipment R 1,369m (74%) Civil / Infrastructure R 489m (26%) RBY R 550m (30%) DBN R 513m (28%) NGQURA R 528m (28%) SLD R 116m (6%) CTN R 106m (6%) PE / EL R 45m (2%) Port View Replacement vs. Expansion Total ETC 7 Year Plan Year 1 2013/14 Year 2 2014/15 Year 3 2015/16 Year 4 2016/17 Year 5 2017/18 Year 6 2018/19 Year 7 2019/20 TPT 29 677 1 859 2 827 4 772 5 496 5 247 5 241 4 235 Rbn Expansion R 789m (43%) Replacement R 1,069m (57%) Port Terminals infrastructure development
- 7. PAGEPAGE Investment climbed from R131m in 2001/02 peaking at R3.2bn in 2008/09 TPT Investment (R2,363m) (5 years: 2001/02 to 2005/06) TPT Investment (R10,277m) (5 years: 2006/07 to 2010/11) 2004/052003/042002/032001/02 2005/06 2009/102008/092007/082006/07 2010/11 Port concessioning dilemma Infrastructure backlog catchup & expansion drive Global recession & investment cutbacks 6 7 2012/132011/122010/112008/09 2013/14 2017/182016/172015/162014/15 2018/19 3200 2337 913 1137 2551 1859 3492 7670 9545 2812 2670 2009/10 Boom- time Ends Global recession Market Demand Strategy TPT R30bn 7yr Investment Plan Transnet Port Terminals 10 capex history
- 8. PAGE • The Port of Durban is undergoing a multi-year project to ramp up of capacity ahead of projected demand. • Planned extension of the Pier 1 terminal into Salisbury Island will increase current capacity from 700,000 TEUs to a potential 1.3-million TEUs by 2016. • Pier 2 capacity is to be increased from 2.1 million TEUs in 2011/12 to 2.5 million TEUs by 2013/14 and 3.3 million TEUs by 2017/18. • Berths 203, 204 and 205 on DCT’s North Quay is currently being taken out of service one at a time to undergo deepening and refurbishment over a 74 month period which started in June 2012. • Container capacity is also being created in other niche terminals such as the Durban RO-RO and Maydon Wharf Terminal (a predominantly break-bulk and RORO facility, with specialised capacity to handle containers), through the acquisition of new equipment, such as mobile cranes, and various infrastructure upgrades to deal with the container traffic diverted from DCT during the capacity upgrade. 7 Future Plans
- 9. PAGEPAGE Port of Durban Isipingo Sapref Refinery Old Durban Airport Toyota Factory N2 Freeway Mondi Umlazi 8 PORT OF NGQURA DURBAN MPT TERMINALS – POINT RORO DURBAN DIG-OUT PORT - Ex Durban International Airport (DIA) Site
- 10. PAGEPAGE Current Port of Durban Container Terminals New Dig-Out Port Automotive Terminal Liquid Bulk Terminal Breakwater and Entrance Channel 9 PORT OF NGQURA DURBAN MPT TERMINALS – POINT RORO DURBAN DIG-OUT PORT - artist’s impression
- 11. PAGEPAGE Concluding remarks 10 • Future freight transport demand in Africa is tied to growth in international trade. • As ports would be increasingly challenged by intensified traffic, greater ship size and transhipment growth, ports capacity may have to be expanded in the future. • Ultimately, all countries can benefit from a fully developed transport infrastructure in Africa. • Greater collaboration will be key in optimising the entire logistics supply chain. • Infrastructure development is one of the key drivers of the New Growth Path, Transnet has an important role to play in this new journey.