IT ALWAYS SEEMS IMPOSSIBLE UNTIL IT S DONE NELSON MANDELA

IT ALWAYS SEEMS IMPOSSIBLE UNTIL IT S DONE NELSON MANDELA 1918-201

OUR TRADE BEGAN WITH GOLD AND DIAMONDS With the discovery of the rare gems in the Cape Colony and the yellow precious metal on the Transvaal Witwatersrand in the late nineteenth century, South Africa became a magnet to thousands of prospectors keen to make their fortune. Within years, the country s ports opened up to global trade and railways opened up the interior. The country s harbour infrastructure grew over the continuing decades and centuries, with sailing ships making way for the first container ships. Today, new Panamax and Post-Panamax vessels operated by multinational shipping lines are seen tying up at our quays. 05

TRANSNET COMPANY OPERATING DIVISIONS RAIL PORTS PIPELINES Freight Rail Rail Engineering National Ports Authority Port Terminals Pipelines WHO WE ARE TRANSNET PORT TERMINALS IS SOUTH AFRICA S LEADING TERMINAL OPERATOR WITH A NETWORK OF 16 CARGO TERMINALS ACROSS SEVEN SOUTH AFRICAN COMMERCIAL PORTS. 06 Transnet Property SPECIALIST UNITS Transnet Projects Corporate Centre Transnet Port Terminals (TPT) is one of five operating divisions of Transnet SOC Limited, South Africa s state-owned freight transport and handling company. We currently manage handling operations for the container, bulk, break bulk and automotive sectors. Plans are underway for Transnet Port Terminals to further diversify into other commodity handling such as liquid bulk. Cargo handling, storage and value-add services are also provided to a wide spectrum of customers in shipping, manufacturing, mining, agriculture and fisheries, telecommunications, energy, wholesale and the retail trade. These services include stuffing and de-stuffing of containers, supply chain solutions for mining commodities, data-dotting, fitment of radios and tow bars in the automotive sector, provision of container empty top-up stacks and soon to launch - pre-tripping and inspection facilities. Heavy lift import and export project cargoes are also handled across most of our terminals. This service is supported by the most technologically advanced quayside mobile cranes, capable of lifting up to a maximum of one hundred tonnes. Over 7 000 multi-skilled and competent people work for Transnet Port Terminals. Through our continuous investment in people, infrastructure and equipment, and regular stakeholder engagement, the company offers a superior service often benchmarked against the best operators in the world. We also have the flexibility to customise our service offering to the customer where practical. To further grow our operations while raising our current level of efficiencies, Transnet Port Terminals most recent focus is to grow into the supply chain. We are also extending our operations beyond South African borders into Africa. To support this we continue to acquire and develop facilities to enable back of port operations. These include: Handling and storage of cleared and uncleared full containers Supply chain solutions for mining commodities Handling, storage, washing and repairs of empty general purpose containers Pre-tripping and inspection facilities Unpacking of containers and loading onto car carriers Packing of export containers (minerals, timber etc.) There is no doubt that what we do and how we do it has a profound influence on the prosperity of our country. Being part of building our nation and contributing to the expansion of our nation s infrastructure drives us every day. 07

IMPORT TRADE ROUTES EXPORT TRADE ROUTES 12% 1% NORTH AMERICA EUROPE 9% ASIA 2% NORTH AMERICA 1% UNITED KINGDOM 44% EUROPE 4% ASIA 1% SOUTH AMERICA 15% AFRICA 62% OCEANIA 2% SOUTH AMERICA 5% AFRICA HELPING TO BUILD WORLD-CLASS BRANDS The professional and efficient import and export terminals we operate enable South African businesses to build and maintain world-class brands. Many companies and industries import raw materials, products, ingredients, components or goods from this country, which are used to produce finished goods which are then exported. Examples include the importing of hops and barley for the production and export of the leading beer brand in the world, and the importing of vehicle components for local car assembly. These cars are then exported across the world. 08 09

A STRATEGY TO MEET FUTURE DEMAND The South African Government views the country s ports and terminals as key engines for economic growth. Transnet SOC Limited therefore embarked on a massive infrastructure drive in April 2012 to boost the economy and create jobs over a seven year period ending in 2019, through its R00 billion Market Demand Strategy (MDS). The investment is aimed at supporting unconstrained growth mainly in support of the fast and efficient movement of export-oriented commodities. For Transnet Port Terminals, the MDS is largely aimed at building freight capacity to support South Africa s economic growth and position the country as a regional transhipment hub for sub-saharan Africa. Over 70% of the capacity will be new or expansion capacity, the remainder will be replacement and maintenance projects. 6 4I0 Employees in 2011/12 to 9 446 in 2018/19 AUTOMOTIVE From 672 56 units to 721 266 units (7.2% growth) BREAK BULK From 8.9 mtpa to 11.9 mtpa (.7% growth) Through investments in equipment, infrastructure and training of our people, the MDS has given Transnet Port Terminals an unprecedented advantage to accommodate and fully benefit from inevitable future demand. This will see the company s capital expenditure increase threefold between 2012 and 2019. The MDS will enable Transnet Port Terminals to be the southern hemisphere s terminal operator of choice as a result of the capacity creation programmes currently underway at major terminals. Read more about how our terminals are benefitting from the MDS on pages, 4 and 5. BULK From 74.0 mtpa to 122.6 mtpa (65.7% growth) Over the next seven years, Transnet s revenue will grow by 187% - an increase of R82 BILLION Capital Sustaining Projects - equipment upgrades Creating Projects - expansion CONTAINERS 70.8 % Growth from 4 05 000 TEU s to 7 52 000 TEU s pa EXPANSION 7I % of our total investment will focus on expansion projects 29 % 7I % MDS Volume Targets 2011/12-2018/19 ALL ROADS (AND SHIPPING ROUTES) LEAD TO AFRICA A bright new era is beginning for Africa. New investment frontiers are there to be discovered and opportunities flourish in a number of its 55 countries. The continent is one of the fastest growing in the world and considered to have the most potential for growth. In a 201 World Bank Report on the economic outlook for the Southern African region, seven of the 15 countries are expected to experience rapid growth in the coming years. Another report states that of the ten fastest growing countries in the world, five are African. As the country with the most developed port, road and rail infrastructure systems, South Africa is the undisputed gateway to these new markets. Transnet Port Terminals is primed to build on and link into Africa s growing transport and logistic corridors. Our newest terminal at Ngqura in the Eastern Cape has been specifically developed as a container transhipment hub for sub-saharan Africa. The terminal was named the fastest growing container terminal in the world in 2012 and again in 201 by Drewry Maritime Research. Every day, new power generation plants, telecommunication networks, cement factories, shopping malls, mines and infrastructure projects are given the green light in Africa. By applying our expertise and partnering with more companies in more places than ever before, our terminals will continue to be at the forefront of this development revolution. Our aim at Transnet Port Terminals is to increase our presence in Africa through the provision of operational, technical and information systems advice to other terminals and to facilitate intermodal connectivity for existing and new markets in the Southern African Development Community (SADC) region. We have begun with our intent to operate several terminals on the African continent. NEPAD South Corridor s plans to link Durban and Dar es Salaam for improved connectivity has motivated this move. One such example would be in Tanzania, which is aiming to be the main regional shipment hub to its neighbouring landlocked countries. Regional cross border integration has been cemented by our sister division, Transnet Freight Rail, which has placed Transnet Port Terminals in a favourable position. 10 11

UNRIVALLED INFRASTRUCTURE SOUTH AFRICA HAS A MODERN AND WELL-DEVELOPED TRANSPORT INFRASTRUCTURE. The country s air and rail networks are the largest in Africa, with the rail network ranked as the 14th longest in the world at about 21 000km. This makes the transport sector a key contributor to the country s competitiveness in global markets. The country s rail infrastructure which connects the ports with the rest of South Africa represents about 80% of Africa s total. Transnet s rail strategy emphasises the need for rail to be the backbone for long distance heavy load freight volumes. Greater tonnages of traffic conveyed by rail would make a significant contribution to reducing the cost of doing business in South Africa. This is an integrated approach in line with the current development at some of our terminals where newly acquired equipment and infrastructure upgrades complement the increased volumes anticipated through moving goods from road to rail. All our terminals have well-developed infrastructure to load or offload cargo from trucks or train wagons and service calling vessels of varying sizes. It is Transnet Port Terminals strategy to grow in the supply chain to create greater value for our customers. With existing TFR (Transnet Freight Rail) routes already extending cross-border into Africa, we are well positioned to utilise these existing alliances. Percent of South Africa s 96 exports are sea-bound 12 1

A WORLD-CLASS WORKFORCE AT TRANSNET PORT TERMINALS WE HAVE LONG BELIEVED THAT OUR STAFF ARE OUR GREATEST ASSETS. As a result of our mobile training clinic, container crane simulators, international work exposure, and training through the Transnet Maritime School of Excellence, our workforce is of a very high calibre. The Maritime School of Excellence offers extensive terminal-related training and through its international networks ensures all its service offerings remain abreast with international best practice. The capacity building department is responsible for the development of the technical skills in TPT to ensure excellence and worldclass practices when maintaining the high technological equipment in use at our terminals. The department has conducted detailed competency profiles that clearly outline the training requirements for key technical positions and are managing the training from a central position to ensure the optimum development of all staff across the terminals. In our multipurpose terminals, our employees are trained to operate a variety of equipment used for loading and offloading different types of commodities. Training goes beyond our employees, as we consider our suppliers to be an extension of our business. Aided by the government s broad-based black economic empowerment policy, we also have supplier development programs across our network of terminals. These aim to ensure quality at all times, convenience to the customer, and timeous delivery of required goods and services. To keep our workforce inspired and motivated, we have a recognition and rewards programme. In addition our workforce ascribe to our values: employee wellbeing, openness and honesty, innovativeness, customer focus, accountability, speed of delivery and growing our business. Talent management is key to the successful skill levels and deployment of our workforce. It includes the proactive identification, planning, attraction, development, retention and monitoring of both the supply and demand of critical positions and key talent. Its purpose is to ensure operational continuity by ensuring that the right people, with the right skills, are in the right role at the right time to ensure successful business results for both the company and our customers. 14 15

INNOVATION IS CHANGE THAT UNLOCKS NEW VALUE Transnet Port Terminals prides itself on its culture of innovation. We have teams within each terminal who hold monthly forums where new ideas are discussed and tabled by its members, and any other individual from the workforce who has an idea to contribute. Successfully implemented ideas that bring real value to the business find their creators well rewarded and recognised by the company. The Transnet Port Terminals App A recent innovation is the Transnet Port Terminals app, which allows the user to track their cargo, gain instant information on live berth plans and important terminal updates across our network of terminals countrywide. The app, identified as Transnet TPT, is available for free in both the Google Play store and the App Store. Through Navis, our Durban Container Terminal: Pier 2 has been able to innovate to use the Rail Dual Cycle method of operation. This allows the Rail Operation to maximise the use of terminal trucks, straddles and rail mounted gantries (RMGs) by enabling them to run loaded at all times, thereby improving loading and discharge times and increasing GCH productivity. CUSTOMER VALUE CREATION Transnet Port Terminals endeavours to enhance the competitiveness of our customers in order to maximise the growth potential of our business. Our main focus is to facilitate trade and reduce the cost of doing business. Driving efficiencies, reducing downtime, and maximising capacity are fundamental in every aspect of the business so that we retain and improve our standards. In recent years, we have re-engineered our operations to create efficiencies and targets that are in line with customer expectations. Throughout our terminals we host joint collaboration with customers and key stakeholders to better understand their needs and expectations. Customer Focused Operations Our clients come from a vast array of industries and our customers include the leading shipping lines in the world some 7 shipping lines call at our terminals. Customer satisfaction indices are conducted during monthly Service Level Agreement sessions between customers and our Commercial and Planning teams. Customers use our cargo handling services because our services, equipment and infrastructure are safe, efficient and reliable. General Cargo Operational System (GCOS) Developed internally at Transnet Port Terminals for tracking break bulk cargo and the automotive operation, the General Cargo Operational System (GCOS) is a comprehensive system that facilitates the terminals administrative and operational processes. GCOS is a new web-based version of the popular and comprehensive cargo operations system that is in use at our automotive and break bulk terminals. The benefits of GCOS are an improved, simpler user interface, greater efficiency, enhanced security, greater data integrity and better governance. Continuous Improvement The company has a dedicated Continuous Improvement Department. Innovation and continuous improvement are approaches that give strength and resilience to an organisation. Through these approaches, we empower management to have a creative role in ensuring that individuals, the team and the organisation gain from change and that the customer benefits through improved products and services. These approaches stimulate people to come up with new and innovative ideas. Teams are proactive in implementing improvements, rather than just being reactive in inspecting and fixing what doesn t work. Centralised Customer Service Centre Our centralised Customer Service Centre is a call centre that supports all our terminals as a single point of contact to facilitate communication and customer service. Similarly, a Planning Centre with a virtual view of all terminal quaysides now exists at our headquarters in Durban providing the link with Operations and Commercial to the benefit of the customer as the set up resolves any arising operational challenges. We meet regularly with shipping industry associations who represent shipping agents, freight forwarders, cargo agents and vehicle manufacturers. These include, amongst others: the South African Association of Ship Operators and Agents (SAASOA); the South African Association of Freight Forwarders (SAAFF); the South African Shippers Council (SASC); the Container Liner Operations Forum (CLOF), the Bulk Liner Operator Forum (BLOF) and the National Association of Automobile Manufacturers of South Africa (NAAMSA). Navis We were the first globally to use Navis and currently have the world s largest multi-facility system running the Navis Sparcs N4 Terminal Operating System. Our value proposition is to reduce the cost of handling cargo as well as to reduce vessel and train turnaround time. 16 17

SAFETY, HEALTH, ENVIRONMENT AND QUALITY FOCUS SUSTAINABILITY In order to provide efficient loading, unloading, transhipment, temporary storage and terminal services to our customers, Transnet Port Terminals safety objectives are characterised by the promotion of value-driven behaviour and proactive leadership. We have transformed safety management into a dynamic risk-based model that integrates safety and operations for progressive behaviours across our terminals. Transnet Port Terminals subscribes and complies with industry best practice in the areas of Operational Safety, Health, Environment and Quality (SHEQ) management systems. We continue to benchmark ourselves against best practices using International Standards Organization (ISO) benchmarks. To this end, all Transnet Port Terminals are NOSA Graded, ISO 9001 certified, ISO 14001 certified and OHSAS 18001 certified. Our automotive terminals in Durban and East London were audited by NOSA and were graded as NOSCAR terminals (the score achieved is more than 95%). Transnet Port Terminals was hailed the overall winner in the Transport Safety category at the Transport Africa Awards held in Johannesburg. A safety mindset is instilled in our employees via our safety culture programme. The programme takes the form of a soccer league. Our terminals and teams compete against each other with the aim of achieving the highest standards in terms of safety to establish a process of behavioural safety management within terminals. Through the implementation of OHSAS 18001, TPT has ensured a world-class health programme facilitated through strategically placed clinics within operations. Africa Ports and Harbours rated TPT as the Safest Terminal Operation on the African continent in 2012/1. Sustainability is a key performance driver within our business. We continuously strive to improve and regularly track our performance against our targets. Sustainability Reporting TPT subscribes to the Global Reporting Initiative (GRI). The GRI is a leading organisation in the sustainability field. It promotes the use of sustainability reporting as a way for organisations to become more sustainable and contribute to sustainable development. The aim of utilising the GRI framework is to make sustainability reporting standard practice for all terminals. Its framework is a reporting system that provides metrics and methods for measuring and reporting sustainabilityrelated impacts and performance which is embraced by TPT in the Transnet annual report. Environmental Management Systems We have a well-entrenched environmental philosophy and the appropriate structures in place to support this important initiative. The internationally recognised ISO 14001 system is in place in each of our terminals around the country. We have an extensive air and ground water and water quality monitoring network and we track our performance through a non-conformance process. We have Atmospheric Emissions Licences for our bulk mineral cargo handling terminals where required. We are committed to ensuring that any impacts we may have on neighbouring communities are identified and mitigated. Resource Conservation Energy savings opportunities are being identified throughout our organisation with monthly monitoring and measurement of all resources being undertaken to identify possible improvements. Most of our buildings utilise motion detectors to automatically turn off lights in areas which are not occupied. Energy-efficient office and highmast lighting as well as heat pumps and solar panels for water heating are being pursued to ensure controlled energy use. Our energy targets ensure that the company remains within a tight performance target. Implementation of the ISO 50001 Energy Management System is planned over the next few years to further manage energy usage and reduce our carbon footprint. The carbon footprint is monitored monthly with the evaluation of emissions linked to volumes handled. 18 19

OUR ACHIEVEMENTS «The fastest growing container terminal in the world Ngqura Container Terminal (NCT); Drewry Maritime Research 2012 and 201. During 2012, NCT s volumes more than doubled, peaking at 129% year-on-year. «Winner of the Safety Award at the 201 Transport Africa Awards. TPT was also shortlisted for the Best African Port Operator Award as well as the Transport Green Award. «NOSCAR grading for Port Elizabeth and East London car terminals 201 NOSA audits. The NOSCAR is the highest safety accolade in the industry. Port Elizabeth and East London Terminals have been NOSCAR-accredited for 4 and 9 years respectively. «Most moves per hour, highest in Africa (January to March 201) Port Elizabeth Container Terminal. Ranking done by Maersk, the world s largest ocean carrier and container shipping company. Durban Container Terminal was ranked fifth in the same study. «PMR Africa Awards 2014, TPT was awarded the following: - Companies/Institutions doing most for the empowerment of women - Service Excellence Diamond Arrow Award Port of Richards Bay - Service Excellence Golden Arrow Award Port of Durban - Diamond Arrow Award in the category Companies/Institutions doing most for job creation «Best performing container terminal in Africa Durban Container Terminal; Container Management Top 120 World Container Terminals Survey 201. Cape Town Container Terminal was also listed for the first time in 201. «Best Success in Africa Award for TPT from CNBC Africa. OUR SECTORS Our operations are divided into four major market sectors: automotive, containers inclusive of specialised transhipments, break bulk and bulk. These products and/or commodities are transformed into products that feature in the lives of men, women and children in South Africa as well as around the world. Transnet Port Terminals is well positioned to trade both gateway cargo and the transhipment market in sub-saharan Africa, East and West trade. «World-class rail dual cycle operation on Navis pioneered by Durban Container Terminal: Pier 2 in March 201. «TPT dominates Transnet Internal Audit (TIA) Integrated Governance Awards - Best compliance internal control environment - Leader in fraud risk management environment - Most improved internal control environment «Level three B-BBEE status for TPT attained in 2014. 20 21

AUTOMOTIVE Happy with your new car? As many as 9 749 vehicles have moved through one of our RoRo terminals in a single month. South Africa s automotive industry is a global, turbocharged engine for the manufacture and export of vehicles and components. Many of the major multinational firms use South Africa to source components and assemble vehicles for the local and international markets. Transnet Port Terminals RoRo (roll on/roll off) facilities are combination/multi-service terminals which handle a variety of cargo driven onto and off the vessel, requiring minimal use of quayside equipment. Our RoRo terminals are an integral part of the supply chain for cars built and exported from South Africa a major industry that sustains many jobs in the country. In South Africa, the automotive industry makes up about 7% of the gross domestic product and accounts for almost 12% of the country s manufacturing exports. Transnet Port Terminals currently moves about 817 000 fully built units annually through its Durban, East London and Port Elizabeth terminals. As a company, we work very closely with our customers to be an extension of their company. For instance, for one car manufacturer based in East London, there is a dedicated bridge built directly into the terminal s undercover parking bays. One of Africa s leading car manufacturing plants is in close proximity to our Durban RoRo Terminal, and is serviced via a direct train that moves a batch of cars from the plant to our terminal each day after production. Automotive companies with production plants in South Africa are well-placed to take advantage of the low production costs, coupled with access to new markets as a result of trade agreements with the European Union and the Southern African Development Community free trade area. Opportunities also lie in the production of materials (automotive steel and components) where Transnet Port Terminals is geared up to take on increasing volumes. LOCATION Durban RoRo East London Port Elizabeth (RoRo) ANNUAL CAPACITY 520 000 FBUs 19 000 FBUs 158 000 FBUs 817 000 The total capacity of FBUs for all terminals in this sector 22 2

CONTAINERS The vast majority of consumer goods that fill our homes came into the country inside a 40 x 20 foot container. The container industry represents approximately twothirds of the value of total global trade which equates to more than US$ 4 trillion worth of goods each year, according to an IHS Global Insight report. It is said that before American trucking magnate Malcom McLean invented uniform metal containers in 1956, goods were crammed into the hold of a vessel, or packed into a wooden crate that would be loaded or unloaded off a vessel. This process was unreliable, expensive and so slow that ships spent more time docked than they did at sea. As a terminal operator, we have invested extensively in infrastructure, technology, human resources, supply chain efficiencies and equipment across our network of container terminals. Equipment purchased includes tandem lift shipto-shore cranes, RTGs, RMGs, straddle carriers, trailers, additional refrigerated container plug points, haulers, reach stackers, and empty container handlers. A further initiative is the support of the Transnet Value Chain Coordination or TVCC. The TVCC comprises a group of assigned executives and managers from across all the companies within the Transnet Group who strategise methods of integrating all aspects of the business to maximise delivery of service to the customer. Reliability of service, enabling growth of the customer s business, and creating a culture of continuous improvement have all been identified as areas for immediate and on-going focus. By looking at how we can optimise our business processes, increase the use of rail throughout our operations, and integrate our country s terminals better with the rest of the continent, Transnet Port Terminals aims to offer increased customer value, drive loyalty and promote sustainable growth. The upgrading of our container planning system NAVIS continues to provide a reliable and unified operating system for all our terminals. Transnet Port Terminals uses the NAVIS SPARCS N4 system for container management and to provide a cargo tracking service to customers and management. NAVIS allows customers to book and track their cargo in ten marine container facilities and one inland rail facility across South Africa. creation projects are currently in progress to ensure readiness for forecasted upward trends for the years ahead. The R5.4 billion Cape Town Container Terminal upgrade is well underway to increase capacity to 1.4 million TEUs, the number of berths from two to four, and deepen berths to 15.5 metres while extending them by 10 metres into the bay. Reefer points will total 78 on completion. The Ngqura Container Terminal s (NCT) R1.1 billion upgrade is also tracking according to plan with two new additional ship-to-shore cranes and 18 RTGs with supporting trailers now fully commissioned. NCT is also equipped for a third berth operation that will increase capacity to 2.0 million TEUs. NCT has been positioned as a transhipment hub receiving support from terminals at Port Elizabeth, Cape Town, Richards Bay and Durban. The terminal is located adjacent to the Coega special economic zone, providing great opportunities for back of port operations. The Durban Container Terminals recently acquired seven new-generation cranes are capable of carrying four twenty-foot containers in tandem. Berth 108 and 109 and their stacking areas have undergone maintenance with an implementation plan formulated with the aim of minimising congestion by diverting traffic to nearby Durban terminals. The deepening of the three berths on the North Quay is also in the planning process. The Port Elizabeth Container Terminal is well established and enjoys close proximity to the industrial hub of the city. The terminal features reliable equipment and two additional new-generation ship-to-shore cranes. With a capacity of 400 000 TEUs, over 800 reefer points and 0 ground slots of stacking capacity, the terminal is well placed to take advantage of its advanced road and rail infrastructure. Our terminals play an important role in the container supply chain. As such, we have introduced a number of value-add services into the container sector including stuffing and destuffing of containers, and the provision of container empty top-up stacks. In the near future we will launch pre-tripping and inspection facilities. LOCATION Durban (Pier1) Durban (Pier2) Cape Town Port Elizabeth Ngqura TEU s in millions ANNUAL CAPACITY 0.7 TEUs 2.9 TEUs 1.4 TEUs 0.4 TEUs 2.0 TEUs 7.4 million The total combined capacity in TEUs for all terminals in this sector 24 25

The huge arch of the Moses Mabida Stadium took its shape from the South African flag. It also symbolises the coming together of the South African people. BREAK BULK Our break bulk terminals have played a vital role in the economic and developmental success of our country. Many of the materials used in the construction of the 2010 FIFA World Cup stadiums were imported through our terminals. All ten stadiums that were rebuilt or renovated in Cape Town, Durban, Port Elizabeth, Nelspruit, Johannesburg, Pretoria, Bloemfontein, Rustenburg and Polokwane received the imported materials used in their construction through our terminals across the three regions in which we operate. Similarly, project cargo, abnormal and heavy lift cargo like transformers required in energy plants and in the construction of power stations are received via our terminals. The successful construction of the Gautrain, Africa s first world-class, modern rapid rail and bus service for Gauteng, was achieved using materials transported through our terminals. Windmills and wind turbines used in the agricultural sector are also classified as heavy lift cargo and are handled at our terminals. As a continent, Africa is becoming one of the world s top project cargo and heavy-lift cargo markets. Its accelerating foreign investment is creating massive energy and infrastructure projects, with our terminals providing the only hubs in Southern Africa with facilities large enough to handle components of this nature. At Transnet Port Terminals, break bulk terminals cater for an array of cargo including neo-bulk, unitised and non-unitised. These commodities are handled at our multi-purpose terminals: Durban RoRo, Maydon Wharf, East London, Cape Town, Saldanha, Richards Bay and Port Elizabeth. LOCATION Durban RoRo Durban Maydon Wharf East London Cape Town Saldanha ANNUAL CAPACITY 0.4 mtpa 1.2 mtpa 0.21 mtpa 1.5 mtpa.0 mtpa 6.1 million The total capacity in tonnes per annum for all terminals in this sector 26 27

BULK MINERAL CARGO Mineral cargo represents the biggest market for Transnet Port Terminals and we are a key player in the success of the sector. Our terminals at Richards Bay, Saldanha and Port Elizabeth handle a large portion of South Africa s bulk minerals. These major bulk cargoes include iron ore, manganese, magnetite and chrome ore and other similar cargo shipped in bulk. Such raw materials are used to create products that help us to maintain the modern lifestyles we have become accustomed to. been invested to create additional stockpile areas. Africa s largest iron ore export facility, Saldanha Bulk Terminal, is creating additional capacity to take it from million tonnes to 82 million tonnes by 2019. The Port Elizabeth Terminal is the largest manganese export facility in Africa. The terminal introduced a number of innovative handling methods to facilitate the growth of emerging miners and to improve capacities including the successful handling of skiptainer vessels. LOCATION Richards Bay Saldanha Port Elizabeth ANNUAL CAPACITY 20 mtpa mtpa 5.1 mtpa To support the South African economy and world trends, as well as the growth of emerging miners in this country, recent Transnet Port Terminals investments have included the purchase of sophisticated bulk handling equipment. Iron ore, one of the major bulk cargoes we handle, is used to make steel, integral to the global economy. 28 In our Richards Bay terminal a terminal that handles over 15 different bulk commodities over R0 million has 85.1 million The estimated capacity in tonnes per annum of mineral cargo that is handled through our terminals 29

Wheat is one of the many commodities handled by our Agri Bulk Terminals. 70-80% of all flour produced is used for bread baking. TRANSNET PORT TERMINALS WHERE TO FIND US AGRICULTURAL BULK CONTAINERS Agricultural bulk exports are also vital to the South African economy. Wheat, maize, malt, rice, soya bean meal, animal feed and woodchips are handled at Maydon Wharf, Richards Bay, East London and Durban Container Terminal. At our Cape Town Terminal fresh produce is handled by containers and conventionally our infrastructure there boasts silo and flatstore. In this sector we provide storage, inventory control and material blending as part of our bulk material handling system. Innovations are seen as the sector s best opportunity for growth and are an area of focus for us. LOCATION Durban Maydon Wharf East London Cape Town ANNUAL CAPACITY 1.4 mtpa 0.76 mtpa 1.5 mtpa AUTOMOTIVE MINERAL BULK BREAK BULK AGRICULTURAL BULK 6 7 8 DURBAN 9 RICHARDS BAY DURBAN CONTAINER MAYDON WHARF RORO 1 SALDANHA 5 EAST LONDON.66 million The total capacity in tonnes per annum for all terminals in this sector 2 CAPE TOWN PORT ELIZABETH 4 NGQURA 0 1 2

1 2 SALDANHA TERMINAL CAPE TOWN TERMINAL PORT ELIZABETH TERMINAL 4 Commodity: NGQURA TERMINAL 5EAST LONDON TERMINAL DURBAN 6CONTAINER TERMINALS 7MAYDON WHARF TERMINAL 8 Commodity: DURBAN RORO TERMINAL 9RICHARDS BAY TERMINAL Commodity: Mineral Bulk, Break Bulk The largest natural, deep-water port in South Africa, the Saldanha Terminal, has an average draft of 17.5m across its combined 5 berths giving it the ability to accommodate Panamax and Cape-sized vessels. The terminal remains the largest iron ore export facility in Africa loading between 16 to 20 vessels per month. Did you know? Saldanha is water-scarce and to ensure sufficient fresh water, Transnet Port Terminals invested in a reverse osmosis plant that uses the existing seawater, sifts it of brine and salt for use in dust control management at the terminal. Market Demand Strategy (MDS) investment The reverse osmosis plant was commissioned during 2012/201 Two shiploaders have been refurbished Conveyor belt replacement BULK CAPACITY million tonnes per annum Berths 2 Cargo BREAK BULK CAPACITY Iron ore million tonnes per annum Berths Cargo Mainly steel, including steel coils, heavy mineral sands, lead and copper concentrate granite Commodity: Containers, RoRo, Agri Bulk, Break Bulk Billions have been invested in Transnet Port Terminals Cape Town Terminal in a multi-phased upgrade of which Phase 1 has already been completed. This includes the extending of the quay wall by 10m over the entire 1 17m length of the quay, at a depth of 15.5m. Phase 2 will increase capacity from 1 million TEUs to 1.4 million TEUs. It includes 2 700 additional reefer plug points for a total of 752 points. The six new super post panamax ship-toshore gantry cranes have considerably improved service levels to customer vessels by maintaining a world-class standard of 2 gross crane moves per hour (GCH). Did you know? Cape Town Container Terminal (CTCT) operations date back to 1977 - facilitating movement of containerised cargo, wine, fruit and white goods to and from the Asian, European, American, Australian and growing East and West African markets. Market Demand Strategy (MDS) investment New Ship-to-Shore cranes Dredging of quay wall to 15.5m RTGs acquired to replace straddle carriers Multi-skilling of employees CONTAINER CAPACITY Current End State 0.9m TEUs 1.4m TEUs Berths 4 Draft 15.5m AGRICULTURAL BULK / RORO CAPACITY Containers Agri-bulk Break bulk / General cargo 0.1 TEUs 1.5 million tonnes per annum 1.5 million tonnes per annum Commodity: Containers, RoRo, Mineral Bulk Port Elizabeth Terminal celebrated 50 years in operation in May 201 having commenced operations in 196. It s now the largest exporter of manganese in the country, and aims to be the largest globally within the next six years. Did you know? The Port Elizabeth Terminal was ranked the highest in Africa for moves per hour between January and March 201 by the world s largest ocean carrier and container shipping company, Maersk Line. The accolade is a result of measured efficiency when counting the number of containers handled per hour which impacts directly on vessel turnaround time. Market Demand Strategy (MDS) investment Break bulk equipment to optimise operational efficiencies CONTAINER CAPACITY BULK AND BREAK BULK CAPACITY Break bulk 0.9 million tonnes per annum Bulk 5.1 million tonnes per annum Berths Drafts 400 000 TEUs Berths 2 Draft Features AUTOMOTIVE CAPACITY 11m 4 Ship-to-Shore gantry cranes, 6 haulers and 14 trailers, 1 empty container handler, 25 one-over-two straddles 158 000 fully built units Berths 1 Cargo Features New and second hand vehicles and high and heavy cargo 5 000 parking bays, car wash facilities, rail connectivity 11m Commodity: Containers The Ngqura Container Terminal (NCT) has been designed as a state-of-theart transhipment hub, servicing traffic from the East, South America, and West African markets. The deepest container terminal in Southern Africa, boasting a 16 metre draft, NCT has seen a steady improvement in volume growth and operational performance. Did you know? The terminal employs just over 500 employees, with room for an additional 500 jobs after the Ngqura Expansion Project is complete. About 98% of these jobs will be sourced from the Eastern Cape. Market Demand Strategy (MDS) investment 48 haulers and trailers 4 Ship-to-Shore cranes 18 RTGs CONTAINER CAPACITY Current Phase 2 400 000 TEUs 2.m TEUs 800 000 TEUs (on project completion) Berths 2 4 Draft 16.5m 16.5m RoRo, Break Bulk, Agri Bulk The East London Terminal (MPT) consists of a RoRo terminal, the largest grain silo on the South African coastline, break bulk and containerised cargo facilities. Established in 196, the terminal currently employs over 120 people. Did you know? The RoRo facility has retained its NOSCAR status for the last 8 years. Market Demand Strategy (MDS) investment Mobile harbour cranes AGRICULTURAL BULK CAPACITY AUTOMOTIVE CAPACITY COMBI CAPACITY Containers Break bulk - 0.21 million tonnes per annum 90 000 TEUs Berths 5 Draft Cargo 0.76 million tonnes per annum Berths 2 Features Specially designed grain silo 19 000 fully built units Berths 2 Features Two dedicated berths, multi-level facility with 2 900 undercover and 1 000 open parking bays, rail connectivity, 26 420m 2 quayside assembly area 8.9m (average) Break bulk and containerised cargo - including motor vehicle components, chemicals, textiles, fruit, sugar, timber, scrap PIER 1: Commodity: Containers Transnet s Durban Container Terminal Pier 1 (DCT: Pier 1) was originally a multi-purpose terminal which was converted to a container terminal in 2007. Pier 1 accounts for almost one fifth of the TEUs handled by Durban Container Terminal South Africa s busiest port. Did you know? DCT: Pier 1 is an indirect operation utilising RTGs (Rubber Tyred Gantries) and haulers to load and unload. The terminal uses NAVIS SPARCS N4 a world-class terminal operating system. Market Demand Strategy (MDS) investment 2 912m 2 Central Building Facility PIER 2: Commodity: Containers Africa s biggest and busiest container terminal, DCT: Pier 2 ranks among the top in the world and recently pioneered a world-class rail dual cycle operation on the container planning system NAVIS SPARCS N4. Did you know? DCT: Pier 2 s new ZPMC tandem lift Ship-to-Shore cranes are the biggest in the southern hemisphere. They can lift 2 x 40 foot containers at once or 4 x 20 foot containers. Market Demand Strategy (MDS) investment Purchase of 7 new tandem lift Ship-to-Shore cranes 1 new eco-friendly diesel/electric Straddle Carriers (twin-lift capabilities) 2 new Terex Rail Mounted Gantry Cranes CONTAINER CAPACITY Pier 1 Pier 2 0.7 TEUs 2.9 TEUs Berths 2 6 Draft 12.5m 16m Commodity: Break Bulk and Agri Bulk Located in the historic Maydon Wharf area, Maydon Wharf Terminal handles both agri bulk and break bulk. Did you know? Maydon Wharf MPT recently handled 114 61 tons in one month, its fastest vessel unload time. The terminal has achieved the 4 million milestone on the handling of woodchip. The woodchip operation in the Port of Durban is the first wood chipping export facility in South Africa that successfully met all criteria stipulated in the Environmental Impact Assessment (done prior to construction). Market Demand Strategy (MDS) investment Acquisition of two mobile harbour cranes New substation built in preparation for increase of reefer capacity to 200 Installation of batch scales for shed 7A Extension of K-block stack to include five rail lines Sheds resurfaced and strengthened AGRICULTURAL BULK CAPACITY 1.4 million tonnes per annum Berths Drafts 9.6m - 10.m Cargo BREAK BULK CAPACITY Berths Wheat maize, soya bean meal and animal feed, woodchips 1.2 million tonnes per annum, 100 000 TEUs Access to 15 berths with a footprint aligned to 4 berths (MW9 to MW12) Draft 9.6m - 10.m Cargo Complex mix including project cargo, neo-bulk, timber, steel coils and other steel profiles Commodity: Automotive and Break Bulk Durban RoRo Terminal is South Africa s largest RoRo terminal and the best equipped in the Southern Hemisphere with a NOSCAR status for the last seven years as well as an International Top 100 Company status from the National Occupational Safety Association (NOSA). Did you know? In February 201, the terminal set a new record in TPT s automotive history handling 9 749 units in a single month. Market Demand Strategy (MDS) investment R48 million was recently used in the RoRo terminal s container facility to upgrade the terminal handling capacity to 20 000 TEUs Stack upgrades New mobile Ship-to-Shore cranes RORO CAPACITY 520 000 (Fully Built Units) FBUs Berths Cargo BREAK BULK CAPACITY New and second hand vehicles, high and heavy cargo 400 000 tonnes per annum, 20 000 TEUs Berths 4 Cargo Handles a niche market of container business as well as break bulk (abnormals, steel commodities and project cargo) Bulk and Break Bulk Situated in the northern industrial hub of KwaZulu-Natal and accessible via rail and road, Transnet Port Terminals Richards Bay is currently undergoing expansion. A deep sea water port which boasts 1 berths, the terminal handles dry bulk ore, minerals and break bulk consignments with a draft that easily accommodates Cape size and Panamax vessels. Did you know? A large percentage of dry bulk commodities are handled via a computercontrolled network of conveyor belts extending 40 kilometres to seven harbour-bound industries. These belts transport cargo between the quayside and the respective manufacturers. Market Demand Strategy (MDS) investment Purchase of new Ship-to-Shore cranes Refurbishment of the tipplers for offloading of wagons Purchase of new tippler New ship unloader BULK AND BREAK BULK CAPACITY Break Bulk Bulk 8 million tonnes per annum 20 million tonnes per annum Berths 1 Draft Cargo 15.5m (average) Mineral bulk, project cargo 4 5

OUR 10 YEAR CAPACITY PLAN CONTAINER CAPACITY As part of Transnet s Market Demand Strategy, our terminals are undergoing a major programme of investment to boost handling capacity. This is being achieved through the acquisition of new equipment, infrastructure upgrades and skills training. 10 8 PORT OF CAPE TOWN 10 8 PORT OF PORT ELIZABETH AND NGQURA - Million TEU 4 Increase in berth length Pavement rehabilitation Additional cranes and equipment to make a fleet of 8 quayside cranes - Million TEU 4 NCT Berth 1 and 2 completed NCT rd berth commissioned Introducing 4 high straddles NCT Phase 2b completed 2 2 0 2012/1 201/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/2 202/24 0 2012/1 201/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/2 202/24 CT 0.80 0.95 0.90 0.90 0.90 10 10 10 10 10 10 10 PE 0.40 0.40 0.40 0.40 0.40 0.50 0.50 0.50 0.50 0.50 0.50 0.50 CT MPT Ngqura 0.80 0.80 14 150 150 150 150 150 185 185 185 185 10 PORT OF DURBAN 10 MULTIPURPOSE TERMINALS - Million TEU 8 4 Maintenance, South Quay pavement 2 new mobile harbour cranes, Maydon Wharf terminal Start of the North Quay berth and length deepening Pier 1 Ph 2: First berth and backup area available Completion of the North Quay berth and length deepening Pier 1 Ph 2: 2 berths completed, stack area for 2nd berth Pier 1 Ph 2: Both berths operational - Million TEU 8 4 Additional equipment to support 2 new mobile harbour cranes for the Maydon Wharf terminal 2 2 0 2012/1 201/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/2 202/24 0 2012/1 201/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/2 202/24 DCT Pier 2 2.10 2.25 2.0 2.00 2.00 2.00 2.00 2.8 2.90 2.90 2.90 2.90 DBN MPT 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 DCT Pier 1 0.82 8 8 8 8 8 8 145 145 2.00 2.00 2.00 DBN MW 0.07 DBN MPT 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 0.2 RBY MPT EL MPT 6 7

BULK AND BREAK BULK CAPACITY 100 RICHARDS BAY 90 - Million tpa 80 70 50 40 0 Additional storage for Chrome GP and adjacent area Additional storage for Chrome CD West RBEP capacity realised 20 10 0 2012/1 201/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/2 202/24 RCB Bulk 21 22.2 21.8 2.1 2.1 2.1 2.1 2.1 2.1 2.1.8 6.6 RCB Coal.5.5.5.5.5.5.5.5.5.5.5.5 RCB MPT 100 90 WESTERN CAPE Saldanha Iron Ore expansion phased approach Saldanha Iron Ore expansion realised 80 - Million tpa 70 50 40 0 20 10 0 2012/1 201/14 2014/15 2015/16 2016/17 2017/18 2018/19 2019/20 2020/21 2021/22 2022/2 202/24 SAL Iron Ore 72 72 82 CPMPT SAL MPT 8

Kingsmead Office Park, Stalwart Simelane Street, Durban, 4001 P O Box 10124, Marine Parade, 4056 T +27 1 08 8 F +27 1 08 82 www.transnet-tpt.net