Presented by: Noel Cronje at the 2009 Railways and Harbours Conference in Cape Town.

1. Transnet Capital Projects
Expansion amidst a financial economic downturn
March 2009

2. A Global Impact
$700-bn US financial bail-out
2009: Overall GDP growth of 0.8%
Recession? Depression?
Deceleration of emerging markets
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3. A Challenging Crisis
• Businesses are still reporting profits
• The quest for survival
• Job losses are a last resort
Innovation Opportunity Leadership
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4. A South African Perspective
Economic growth at lowest levels since 2000
Q3 weakest growth rate this decade
China growth rate to drop to 7%
Household spending showed the first
contraction since the first quarter of 1994
Collapse of commodity and equity prices
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5. South Africa is Globally Connected
• Global deflation, not inflation
• Low global interest rates
• The recession of the entire EU (European
Union)
• The US’ expected -4% growth rate in 2009
• US household wealth has declined by US$12
trillion, which is 9% of the country’s GDP.
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Prof Gill Marcus 2009

6. Opportunity Amidst the Crisis
Preparing for 2010 World Cup Soccer
Confirmation of R80-bn investment
2009/2010: R10-bn investment
A healthy economy requires a reliable and efficient transport
system, which is core to our mandate of reducing the cost of
doing business in the country
Transnet confirms its promise to deliver on our commitment to YOU
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7. Transnet Capital Projects Embraces
Growth
Transnet’s 4 Point Turnaround Strategy :
Transnet’s
• Improved operational performance through re-engineering
• Improved stature through risk and governance
Growth
• Improved financial achievement through balance sheet
Strategy
restructuring
• Capable employees through a focus on people and human
capital
Transnet Capital Projects is mandated to PLAN, DELIVER, MAINTAIN and SUPPORT
infrastructure through its world-class EPCM (engineering, procurement and construction
management) execution methodology within key corridors.
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8. 5 Priority Corridors: Transnet’s Customer
Focused Value Chains
Rbay Cor
Natcor
NMPP
Ore Line
Cape Cor 8

9. Ore Line: Sishen-Saldanha Corridor
865 km ore line
2007/2008 railed 31.9 million tons of iron ore
Planned expansion to 47 mtpa
Project deliverables:
• Acquisition of rolling stock
• Alterations to crossing loops and
construction of new loops
• Upgrades to rolling stock workshops
• Power supply upgrade
• Refurbishment of the ship loader and
conveyors
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10. Cape Corridor
Cape Town container terminal:
• Increase capacity to 1.4 million TEUs
• Deepening of Ben Schoman Berth to 15.5m
• Quay refubishments of berths 601 – 604
• Dredging of 1.23 million cubic meters of sand
• 8 new ship-to-shore cranes to service larger vessels
Ngqura Container Terminal:
• Breakwater construction
• Dredging of basin and channels
• Sand bypass system
• Five berths and back-up areas
• Initial landside infrastructure
• Pilot boat and tugs
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11. Natal Corridor
Durban Entrance Harbour Widening:
• Channel widened to 225m
• Deepened to -19m in the approach channel and
-16.5m in the inner port channels and basins
Pier 1:
• Project completed with a handling capacity of
720 000 TEUs per annum
Durban Container Terminal Re-engineering:
• Redesign stacking area to maximise capacity for
the Durban Container Terminal and the Port of
Durban
• Capacity to increase by an additional 600 000
TEUs
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12. Richards Bay Corridor
Coal Expansion Project:
• Increase export capacity to 72mtpa by
2010/2011
• Planning for further expansion of export
capacity to 81mtpa
Refurbishment Project:
• Feasibility studies to increase capacity by
extending the 700 series berths by an
additional two
• Increasing container terminal capacity by
converting the 600 series berths to
approximately 2.6 million TEUs
• Developing the 500 series to increase
capacity to 3.7 million TEUs
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13. New Multi Product Pipeline NMPP
Pipeline Project:
• Construct and operate the New Multi-Products Pipeline from Durban to
Gauteng
• Capacity initially be 1100 cubic meters per hour and will eventually reach 3 000
cubic meters per hour on the main line
• Construction of a new 24 inch diameter trunk-line
• Total of 550 km pipeline to address the increased demand for fuel in Gauteng
and surrounds
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14. Rehabilitation, Maintenance and Emergency
(RME)
• Major rehabilitation projects that have been undertaken include Overhead
Traction Electrification (OHTE) Infrastructure Rehabilitation and Signals
Powered Upgrade.
• Responsible for all the routine maintenance work on the Perway, including
maintenance of sleepers, drainage areas and rail tracks.
• Emergency Maintenance work for Freight Rail
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15. Determined in Difficult Times
World Class Project Support Services
Ambitious safety targets, with reduced
LTI ratios
Customer-centric approach towards procurement, world-class
standards
Sound business practices and good corporate governance
Sustainable project development and effective environmental
management
Transnet confirms its promise to deliver on our commitment to you.
National infrastructure planning and development
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16. Transnet Capital Projects Delivers
Excellence C om
ces mu
r
ou nic
es atio
Environment
nR ns
ma and Sustainable
Hu Development
National Project Design
Infrastructure and Execution
Planning
World Class Project
Management Excellence
•Procurement
Rehabilitation,
•Finance & ICT
Maintenance
•Project Support
and Emergency
Services
Safety and Risk
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17. One Company, One Vision
Capital Projects has a central role to
play in the enablement of growth for
Transnet
Adopted a holistic and customer-centric
EPCM approach
Construction management services
through:
• Planning
• Demand, pre-feasibility and
environmental studies
• Procurement
• Project management and execution
• Financial processing and cash
management
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Sources: (McKinsey Quarterly Report: January 2009; ABSA: Capital Review January 2009; GIBS News January 2009)