business overview and opportunities at the ports

Heading heading heading Date

Opportunities at the Ports

Transnet Port Terminals on supplier and enterprise skills

development - Ntombeziningi Shezi

- 23 February 2016

2

Contents

• Introduction to Transnet

• Opportunities in the ports

– Skills Development

– Enterprise Supplier Development in TPT

– Procurement Opportunities

• End

3

TPT is a division of Transnet SOC Ltd

20,500 km rail network240 million tons of cargo4.7 million TEU 18 billion litres of fuel

4

Port Terminals operates container terminals at the ports of:

– Durban,

– Port Elizabeth,

– Ngqura and

– Cape Town.

Port Terminals has an

annual capacity of

over 6.4 million TEUs

Container Terminals

5

With a market share of 52%, Port Terminals handles mineral bulk at the ports of:

– Richards Bay,

– Port Elizabeth and

– Saldanha,

and handles agricultural bulk commodities at the ports of:

– Durban and

– East London.

Bulk Terminals

6

Break-Bulk is handled in all the ports where TPT operates, listed below, except Ngqura and is best described as freight that is not classified as bulk and is not containerised:

– Richards Bay,– Durban,– East London,– Port Elizabeth,– Cape Town and – Saldanha

Break-Bulk Terminals

7

Port Terminals has a capacity to handle 850 000 units pa and operates automotive terminals at the ports of:

– Durban,

– East London and

– Port Elizabeth.

Automotive Terminals

8

Transnet SOC Ltd’s Integrated Port Network

Port Infrastructure:

• 18 container berths (4 Terminals)

• 5 automotive berths (3 Terminals

• 21 mineral bulk berths (3 Terminals)

• 6 agri-bulk berths (2 Terminals)

• 37 break bulk berths (6 Terminals)

• 16 liquid bulk berths

•

MOSSEL BAY

9

TPT’s Vision

10

Transnet’s Market Demand Strategy

11

Government’s “New Growth Path”

• The New Growth Path (NGP) is a policy developed by Government in 2010 toensure the Government’s development objectives for South Africa are achieved(e.g. transformation, job creation, rural development).

• Transnet supports this policy and plays an important role in making sure theseobjectives are achieved.

• The manner in which Transnet purchases goods and services as an organ ofstate must help develop and transform the local supply base.

• Transnet engages in targeted supplier development initiatives to supportlocalisation and industrialisation and provide meaningful opportunities for BlackSouth Africans, focusing on Youth (18-35), Black women, People with Disabilities,

small businesses and rural integration.

1

Transnet’s SD approach is to leverage the MDS infrastructure programme to foster economic growth & promote transformation

• Achieving SD objectives through leveraging high-value procurement by including: Industrialisation Localisation Promoting technology

transfer Job creation and

preservation Developing industry-specific

skills Enterprise development Rural integration MDS will also provide an

opportunity to accelerate economic growth and transformation

• Ensuring transactions to bring HDI’s* into the economic mainstream through the advancement of HDI ownership

• Address economic disparities and entrenched social inequalities through the use of:

FRC (current, future)**

Generic B-BBEE scorecard• Ownership• Management Control• Employment equity• Preferential procurement• Enterprise development• Socio economic

development• Skills development

SD objectives

Driv

e e

co

no

mic

T

ran

sfo

rma

tion

(E

mp

ow

erm

en

t)

Fa

cil

ita

te e

co

no

mic

G

row

th

Transformation Growth

SD objectives

HDI = Historically Disadvantaged Individuals as per the B-BBEE Act 2003; ** FRC = Further Recognition Criteria (Source: Team analysis)

13

Enterprise and Supplier Development in TPT

Third party ED grants for SMMEs:

Contribution made to EMC for the development of a Maritime Incubator to cater for youth businesses in the Maritime Sector

Supplier Readiness Programme:

38 businesses are benefiting from this programme where SABS facilitates the process of certifying SMMEs with ISO 9000

BBBEE Training - TPT Suppliers

29 suppliers were provided with training on the New BBBEE Codes

NEC Training on SMMEs

49 SMMEs were provided with NEC training in Durban and Richards Bay

Youth Membership Programme:

89 Youth businesses have been enrolled as members of the DCCI to give them access to network and gain from the Chamber’s programmes

14

Preferential Procurement Spend YTD

BEE Procurement Spend from all Empowering

SuppliersR1 828 969 039

89,48%

Exempted Micro-Enterprises

R348 709 09417,06%

BEE Procurement Spend from all

Empowering that are Qualifying Small

Enterprises R539 681 625

26,4%

All Empowering Suppliers that are

more than 30% black women

ownedR473 570 142

23,17%

Suppliers that are 100% Black Youth

Owned R36 176 759

1,77%

All Empowering Suppliers which are at

least 51% black owned and moreR1 064 149 833

52,06%

TMPS: R 2 043 931 806

15

Enterprise and Supplier Development

Enterprise Development Initiatives

Comments Actual

Third party ED grants for SMMEsContribution made to EMC for the development of a Maritime Incubator to cater for youth businesses in the Maritime Sector

R 2 000 000

Supplier Readiness Programme38 businesses are benefiting from this programmewhere SABS facilitates the process of certifying SMMEs with ISO 9000

R 2 110 000

BBBEE Training - TPT Suppliers29 suppliers were provided with training on the New BBBEE Codes

R 51 000

NEC Training on SMMEs49 SMMEs were provided with NEC training in Durban and Richards Bay

R100 000

Youth Membership Programme - DCCI

89 Youth businesses have been enrolled as members of the Durban Chamber of business. This is to give youth these businesses access to network and gain from the Chamber’s programmes.

R 255 239

1616

Procurement opportunities

OpEx

CapEx

1717

Procurement opportunities

• Equipment Repairs & Maintenance

• Stevedoring• Training• Security• Building Repairs &

Maintenance• Fuel• Catering• IT• Tyres• Office Cleaning• Waste Management• Clinic & Emergency Services• Driving Services• Printing

PAGE

TPT Capital Equipment Acquisitions

18

EQUIPMENT COUNTRY OF ORIGIN OEM

SHIP TO SHORE (STS)

CHINA ZPMC

IRELAND LIEBHERR

GERMANY NOEL

CONTAINER TERMINALS

PIER - 1 DCT DURBAN NCT PE CTCT

PAGE


19


RAIL MOUNTED GANTRY (RMG)

CHINA ZPMC

GERMANY KALMAR

GERMANYTERREX

GERMANY MORRIS

RUBBER TYRED GANTRY(RTG)

GERMANY KALMAR

IRELAND LIEBHERR

PAGE


20


STRADDLE CARRIERS

GERMANY TERREX

FINLAND KALMAR

HAULERS

GERMANY MAFI

ITALY FERRARI

HOLLAND TERBERG

REACH STACKERS

GERMANY KALMAR

ITALY FERRARI

CHINA SANY

GERMANY SMV

PAGE

Component Localisation Opportunities

21

SHIP TO SHORE (STS)

ITEM

- STEEL STRUCTURE

- MOTORS

- ROPES

- GEARBOXES

- CONTROL AND AUTOMATION

RAIL MOUNTED GANTRY

- STEEL STRUCTURE

- MOTORS

- ROPES

- GEARBOXES


PAGE


22

STRADDLE CARRIERS

ITEM

- STEEL STRUCTURE

- MOTORS

- ROPES

- GEARBOXES


- ENGINE

- GENERATOR

- ALTERNATOR

- STARTERS

- BATTERIES

- TYRES

PAGE


23

RUBBER TYRED GANTRY (RTG)

ITEM

- STEEL STRUCTURE

- MOTORS

- ROPES

- GEARBOXES


- ENGINE

- GENERATOR

- ALTERNATOR

- STARTERS

- BATTERIES

- TYRES

PAGE


24

HAULERS

ITEM

- ENGINE

- ALTERNATOR

- STARTERS

- BATTERIES

- TYRES

- GEARBOXES

REACH STACKERS

- ENGINE

- ALTERNATOR

- STARTERS

- BATTERIES

- TYRES

- GEARBOXES

OPPORTUNITIES: OPEX

CommodityOpportunity

Category

Repairs & Maintenance: Air Conditioning: DBN Within 3 months

Supply of Gas & Welding Equipment: National Within 3 months

Supply of General Consumables: KZN Within 3 months

Provision of Public Relations Management Services: National Within 3 months

Repairs & Maintenance: Eqquipment: RB Within 3 months

Provision of Dedicated Staff Transporting: DBN Within 3 months

Provision of Dedicated Staff Transporting: RB Within 3 months

Repairs & Maintenance: Straddles: DBN Within 3 months

Supply of Corporate Uniform Clothing Within 3 months

Conveyor Splicing: RB Within 3 months

Provision of ISO Accreditation Audits: National Within 3 months

Repairs & Maintenance: Equipment: DBN Within 3 months

Provision of Rigging Services: RB Within 3 months

Provision of Personal Protective Wear Within 3 months

Supply of Tea & Refreshments: KZN Within 9 Months

Repairs & Maintenance: Forklift: DBN Within 9 Months

Provision of SAP Support Services: DBN Within 12 Months

Supply of Tea & Refreshments: KZN Within 12 Months

Repairs & Maintenance: Forklift: RB Within 12 Months

Supply of Conveyor spares: DBN Within 12 Months

Repairs & Maintenance: Engines: DBN Within 12 Months

OPPORTUNITIES: OPEX

CommodityOpportunity

Category

Provision of Office Cleaning: RB Within 12 Months

Provision of Office & Workshop Cleaning: RB Within 12 Months

Supply & Maintenance of Office Plants: DBN Within 18 Months

Provision of Printing Services: DBN Within 16 Months

Provision of Driving and Handling Services: DBN Within 16 Months

Supply of Industrial Tyres: National Within 16 Months

Repairs & Mainteance: Elect-Liebherr Crane: DBN Within 16 Months

Provision of Security Services: National Within 20 months

Provision of Office & Workshop Cleaning: DBN Within 20 months

Provision of Material Handling Services: RB Within 20 months

Provision of Pest Control Services: RB Within 20 months

Provision of Occupational Health Managemetn Services Within 20 months

Supply of Automotive Filters: KZN Within 20 months

Provision of Sanitation Services: KZN Within 20 months

Provision of Dust Monitoring Services: RB Within 20 months

Monitoring of Effulent, Storm & Ground Water: RB Within 20 months

Provision of Sewrage Removal: DBN Within 20 months

Supply of Conveyor Belting: National Within 20 months

Document Output Control: National Within 33 Months

Provision of Fleet Management Services: National Within 33 Months

Supply of Fuel: National Within 33 Months

PAGE

Capex Pipeline FY 16/17 TPT (OWN) (NEW AND EXISTING)

Project NEW/ EXISTINGProject duration (months)

Phase

Straddle Carrier Replacement (16/17) - 23 Straddles NEW

23 FEL 4Camco Infrastructure replacement and upgrade New

24 FEL 2

Replacement of a front end loader

NEW

1 FEL 4Critical Refurbishment Grain Elevator EXISTING

60 FEL 2Replacement of 2 Vigans New

23 FEL 4Midlife refit on RTG'S (18) NEW

24 FEL 1Replacement Haulers (x14) EXISTING

16 FEL 4Acquisition of 12 replacement trailers New

16 FEL 4Mid life electrical Refurb - 6 x Liebher cranes New

17 FEL 1Replacement of Forklifs ( X3) New

33 FEL 4Acquistion of Bobcat New

16 FEL 4Acquistion of Sweeper New

16 FEL 4

PAGE



Phase

Acquisition of 2 empty container handlers NEW

60 FEL 4Acquisition of capital spares NEW

60 FEL 4Refurbishment of the grain elevator EXISTING

5 FEL 3Test weights for load testing NEW

4FEL 3Capital spares for STS cranes NEW

4FEL 3Bulldozer NEW

4 FEL 4Access Control EXISTING

20 FEL 4Acquisition of 4 RTG's Future

23 FEL 4Upgrades for the STS crane management computers NEW

8 FEL 1Modifications to RTG's to enable power back up NEW

8 FEL 1Capital spares for equipment (with Carols) NEW

8 FEL 4Service truck – Hiab crane NEW

8 FEL 4

PAGE



Phase

Work shop forklift NEW

8 FEL 4Midlife Refit - RTGs x 28 Future

48 FEL 1STS Crane height adjustment to LC 3, LC 4, LC 7 and LC 8 NEW

11 FEL 2Parking facilities for staff NEW

11 FEL 2Park home facilities at the ingate x 3, outgate x 2 , quayside

x1, 501 area x1

NEW

11 FEL 2Sweeper Truck NEW

11 FEL 2Replacement of Central Air con at the admin building NEW

11 FEL 2Spreader anti sway NEW

11 FEL 2Rail line replacement NEW

11 FEL 2Increased diesel storage NEW

11 FEL 2FORKLIFT 18 TON X 1 and 13 ton x1 at CTMPT New

1 FEL 4FORKLIFT 30 TON X1 Future

1 FEL 4

PAGE



Phase

Midlife Refurb of the Liebherr 400 NEW

12 FEL 1Haulers and Trailers (x2) at SAL MPT 2015/16 NEW

1 FEL 4Haulers and Trailers (x2) at SAL MPT 2016/17 Future

11 FEL 4MPT Expansion - Quayside New

FEL 3MPT Expansion - Landside New

FEL 3Capacity increase to 9mtpa New

FEL 3Metal detectors x 2 units EXISTING

16 FEL 4Belt washing systems NEW

30 FEL 3Conveyor belt replacements at SAL IOT 2016/2017 New

11 FEL 4Equipment Refit - FEL 3 (Tippler, SR, SL) Future

22 FEL 1Procure 2 x Bobcats New

11 FEL 4

PAGE



Phase

Removal of CV314 and replacing with transfer chutes New

11 FEL 2Fencing of port boundary New

11 FEL 2Environmental Projects to meet AEL requirements New

11 FEL 1Machine Operator Escape System, Stacker Reclaimers and

Shiploaders

Future

11 FEL 1Design, supply and installation of Automated counter weight

hoisting systems for conveyors.

NEW

11 FEL 2Capital Spares - SAL NEW

FEL 4Supply, Install and commission of water addition sprayers for

conveyor 210 and 110

NEW

FEL 2Upgrade of water reticulation pipe system from uPVC to

HDPE or alternative

NEW

FEL 2Electrical Refurbishment of Conveyor Belts moving heads EXISTING

36 FEL 4Delkor plant refurbishment NEW

17 FEL 1Replacement of Stacker Future

23 FEL 1

PAGE



Phase

K24 Tunnel Dust Extraction EXISTING

11 FEL 2Dust Suppression - Phase 2 Future

11 FEL 1Commtrac Implementation - RCB EXISTING

207 FEL 2Caillard unloaders upgrade New

FEL 2Hopper 1 and 2 midlife refurb New

FEL 2Liebherr 500 midlife refurb New

FEL 2Belt Scales upgrade New

FEL 24 x Skid Steer Loader and 8 x Sweeper attachments NEW

4 FEL 3Trailer refurbishment - 98 trailers @R200 000 each NEW

23 FEL 1Capital Spares for the RTG's and RMG's New

11 FEL 1Upgrade of the substations New

72 FEL 4GCOS Upgrade EXISTING

63 FEL 4Navis EXISTING

94 FEL 4

PAGE

Capex Pipeline FY 16/17 TCP (NEW AND EXISTING)

ProjectNEW / EXISTING Project duration

(months)Phase

Road Repairs EXISTING

60 FEL 3North Quay Upgrade New

84 FEL 3DCT Stack Rehabilitation- North Quay New

57 FEL 2Automation of Pier2 Truck Staging Area EXISTING

35 FEL 2Resurfacing of MHA Workshops EXISTING

56 FEL 3Canteen Facility for Point EXISTING

27 FEL 3

Replacement of Asbestos Roof in buildingsNEW

23 FEL 1

Resurfacing and strenghthening of Sheds

NEW

94 FEL 1

100 ton weighbridgeNEW 12

FEL 1Quay Side Rail replacement EXISTING

32 FEL 3Refurbishment of the PE Manganese Plant - Safety Critical

Tipplers x2

EXISTING

31 FEL 2Refurbishment of the PE Manganese Plant - SR, SL and

conveyors

New

31 FEL 1

PAGE



(months)Phase

Resurfacing quayside & stacking areas Bulk (H) EXISTING

72 FEL 2Upgrading of Sheds New

30 FEL 4Additional mini-substation at MPT NEW

1 FEL 1Weighbridges NEW

1 FEL 2Warehouse refurbishment NEW

23 FEL 2Car wash/water spray facilities EXISTING

40 FEL 2Fire deluge systems for all conveyors EXISTING

54 FEL 3New Tippler EXISTING

60 FEL 2Upgrade of security lighting at SAL IOT EXISTING

48 FEL 2Fire systems for all substations EXISTING

48 FEL 3Storm and environmental systems NEW

60 FEL 2Modifications to CV 120 NEW

20 FEL 2

PAGE



(months)Phase

Structural Modifications to CV 113 and CV 213 NEW

20 FEL 2Upgrade to the festoon system at tippler 1 and tippler 2 NEW

20 FEL 2Increase the Mittal stockpile storage and reclaim capacity NEW

20 FEL 2Critical Capex - GP 1 & 2 Rail Beam Refurbishment EXISTING

60 FEL 3Critical Capex - S05 & S08 - Hopper Design Change x 8 EXISTING

60 FEL 3Other sustaining capex - Upgrading of Fire Systems Phase 3EXISTING

60 FEL 3Other Replacements - Replace plough reclaimers in Bins NEW

37 FEL 43rd Tippler at RBY DBT EXISTING

52 FEL 2C01 Conveyor System EXISTING

23 FEL 3Emergency Lighting - Admin and Sheds NEW

23 FEL 4MHA workshop refurbishment NEW

36 FEL 3Ngqura Manganese NEW

FEL 3

business overview and opportunities at the ports

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