transnet presentation

Transnet Strategy & Investment Plan : 

Transnet Strategy & Investment Plan Board of the South African Cities Network

Strategic direction: 

Strategic direction

Delivering on our commitments: 

Delivering on our commitments “The public sector discharges its responsibilities to our people as a critical player in the process of the growth, reconstruction and development of our country by reducing the cost of doing business in our country.” President Mbeki : State of the Nation Address 21 May 2004

There are significant shifts in the SA economy that warrant a closer examination of the supply chains necessary to support the economy. : 

Cape Town Port Elizabeth Durban Saldanha Richards Bay East London Maputo Sishen Beitbridge Gauteng There are significant shifts in the SA economy that warrant a closer examination of the supply chains necessary to support the economy. SA needs to reduce logistics costs by one third to sustain our competitiveness.

An Integrated Transport Strategy : 

An Integrated Transport Strategy Transnet provides efficient, integrated transport services to the bulk and manufacturing sectors. Ensure that Transnet provides an efficient transport platform that facilitates trade growth in SA Transnet is the custodian of Port, Rail and Pipeline Infrastructure Transnet serves specific industries to leverage its strength in assets Transnet collaborates with Customers to jointly design services and invest in areas that improves the performance of all parties

Transnet Business Portfolio: 

Transport Portfolio Transnet Business Portfolio Independent Regulators

Programmes and projects: 

Programmes and projects

Infrastructure plan: 

Infrastructure plan

Volumes and Investment per Corridor: 

Port Elizabeth East London Maputo Gauteng Mega Industrial Zone Sishen Beit Bridge Richards Bay Durban Saldanha Volumes and Investment per Corridor Cape Town

Slide 10: 

5 YEAR INVESTMENT PLAN

Major Rail Projects: 

Improved profitability, efficiency & safety; Increase coal capacity from 71mta to 86mta by 2007/08; Increase general freight capacity from 14mta to 19mta; 4mta set aside for BEE; Further investment of R9bn required to sustain this capacity; Investment by NPA for additional berth 306 at a cost of R443m Payback period of 8yrs & 24% IRR Support economic growth in the Northern Cape; Optimize scarce resources and to capture market demand Affords sustainable profitability and increased productivity; Recover the cost of the investment over the period; Rand based tariff for the remaining period of contract ; Committed investment by SAPO of R920m for the expansion of the terminal Coal line capacity expansion (R2.5bn) Iron Ore line capacity expansion (R2.8bn) Upgrade of 200 18E Locomotives (R1.2bn) Wagon Fleet Renewal & modernization (R4.1bn) Upgrading and over hauling the 6EI’s to 18E’s; improvements in reliability and traction; Reduced repair and maintenance costs. Upgrade of the wagon fleet; Extend the life of wagons Spoornet major projects Major Rail Projects

Major Port Projects: 

Durban Port Investments (R4.5bn) Cape Town Container Terminal expansion (R1.9bn) Port of Ngqura (R4.1bn) Alignment with govt. objective to foster economic development ; The port expected to be operational by Oct 2005; No dedicated traffic to this port; Several options being considered for the revenue generation; Stimulates & sustains economic activity in the Western Cape; Increase in stacking capacity by 226k TEU by 2008 and to 1.6m TEU by 2017; To meet productivity expectations of customers; Ports (NPA & SAPO) major projects Durban 2005 expansion program Widening of the entrance channel Pier no 1 container terminal Deepening of Berths Widening of the entrance Channel Major Port Projects

NPA Strategic Projects: 

NPA Strategic Projects 1 2 3 4 5 Sustain Expand Develop

NPA Strategic Projects (2): 

NPA Strategic Projects (2) 1 2 3 Sustain Expand Develop

SAPO Strategic Projects: 

SAPO Strategic Projects 1 2 3 4 5 Sustain Expand Develop

Implications to Major Cities from a freight perspective: 

Implications to Major Cities from a freight perspective Container & Automotive traffic is growing 7% in container traffic 12% in Automotive sector Road access to and from ports will be inadequate to support these increases Given the developments around Cape Town, Port Elizabeth, Coega, Richards Bay, Durban and Dube Trade port, there must be an integrated plan Infrastructure and system requirements Appropriate planning and alignment to support key sectors of the provinces economy Appropriate skills and training programs Philosophy of creating capacity before demand arises which will drive economic development in the provinces & cities Infrastructure in ports and surrounding the ports precinct Appropriate people skills developments

SAPO SECTOR GROWTH: 

SAPO SECTOR GROWTH