Port Terminals 2019 - Transnet
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Port Terminals 2019
Transnet Port Terminals 2019
2
Highlights
• Revenue grew by 5,6% to R13,1 billion
• Automotive and break-bulk volumes performed well in 2019,
growing by 5,6% and 3,7% respectively
• EBITDA increased by 8,8% to R4,54 billion
• R1,5 billion was spent on capacity creation and maintenance
projects during the 2019 financial year
Business overview
Transnet Port Terminals (Port Terminals) plays a strategic role in
the South African economy by enabling the efficient flow of
imports, exports and transshipments through its cargo terminal
operations. Through its strategic role in the management of these
key trading hubs, Port Terminals ensures year-round connectivity
of the South African economy with other key trading partners in
the region and the rest of the world. As a vital enabler of trade
between South Africa and the global market, Port Terminals
continuously strives to improve the reliability and efficiency of
its operations through holistic business innovation to reduce
business costs.
Port Terminals provides cargo handling services to a wide
spectrum of customers including shipping lines, freight forwarders
and cargo owners. Operations are divided into four major business
segments, namely: containers, dry bulk, break-bulk and
automotive. The division operates 16 terminals with 68 berths in
seven ports spread along the South African coastline.
Containers
Port Terminals operates container terminals in the ports of
Durban, Ngqura, Port Elizabeth and Cape Town. The division
currently has a cumulative annual capacity of more than 6 million
20-foot equivalent units (TEUs). The Durban and Cape Town
container terminals are operating close to capacity, however, plans
are in place to increase the capacity in these ports.
Dry bulk
Operations within the bulk sector are characterised by handling
dry bulk commodities through a network of conveyor belts,
tipplers, stackers, reclaimers and ship loading and unloading
equipment. Port Terminals handles mineral bulk commodities at
the ports of Richards Bay, Port Elizabeth and Saldanha, and
handles agricultural bulk commodities at the ports of Durban and
East London.
Break-bulk
Port Terminals handles steel, timber, granite, abnormal and project
cargo, and other commodities through its break-bulk operations in
multi-purpose terminals in all seven ports. In some instances,
traditional bulk cargo can be handled at break-bulk facilities
utilising a skip operation.
Transnet Port Terminals 2019
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Automotive offerings beyond its core business as a port terminal operator. The
requisite high-performance culture we are instilling will enable us
Port Terminals operates automotive terminals at the ports of to achieve:
Durban, East London and Port Elizabeth. These facilities handle a
variety of vehicles driven onto and off the vessel. • Financial sustainability and growth;
• Operational excellence supported by predictable, reliable and
Port Terminals has embarked on a ‘Top Five in Five’ strategy aimed efficient terminal-handling services;
at ensuring the division becomes one of the top five global port • A cohesive port ecosystem that is integrated, efficient,
terminal operators by 2022. This will be achieved through sustainable and customer focused; and
nurturing a high-performance culture and will be facilitated • Proactive planning across the ecosystem to achieve operational
through a strong, unifying vision of expanding the division’s service excellence and financial growth.
Where we operate
Port Terminals’ geographic locations
Beit Bridge
LIMPOPO
PENDORING
■
Maputo
GAUTENG MPUMALANGA
NORTH
WEST
Sishen NEWCON ■
FREE STATE
KWAZULU- ■
■
Richards Bay
Lohathla ■ NATAL
■■
Durban ■■
NORTHERN CAPE
EASTERN CAPE
■ Containers
Saldanha ■ East ■■
■
London
■■ ■ Bulk
WESTERN Ngqura■ ■ Break-bulk
CAPE ■
Automotive
■■
Cape Town ■
▲■ Mossel Bay Port
■■ ■
Elizabeth
Transnet Corporate Centre Johannesburg
Regulatory environment
The National Ports Act, No 12 of 2005 (Ports Act) is the enabling legislation for Transnet Port Terminals and promulgates the parameters within
which terminals operate in South Africa. With 21 Terminal Operator licences across South Africa, Port Terminals has developed a Compliance
Risk Management Plan, as well as a Critical Control Framework and Control Self Assessments (CSAs) for the Ports Act. The CSAs are rolled out
across the business biannually and ensure compliance with the Ports Act and Terminal Operator licences. Port Terminals submits annual reports
on operations, performance, finance, SHEQ1 and competition to Transnet National Ports Authority, which then conducts mandatory annual
audits on all the terminals.
1
Safety, Health, Environment and Quality.
Transnet Port Terminals 2019
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Performance context
Strategic objective Contribution to strategic objective
Reduce the total cost of logistics as a • Developing innovative digital platform supply chain solutions to increase customer
percentage of transportable GDP connectivity and transparency.
• Improving cargo handling efficiency rates to improve vessel turnaround times.
• Leveraging planning and operational partnerships between major shipping lines to improve
the moves per ship working hour (SWH).
Effect and accelerate modal shift by • Developing inland rail hub consolidation terminals in the hinterland to improve connectivity
maximising the role of rail in the national of bulk commodities by leveraging rail.
transport task
Leverage the private sector in the provision • Implementing private sector partnership (PSP) agreement for the two agricultural
of both infrastructure and operations where terminals in Durban and East London.
required • Exploring partnerships to handle liquid bulk edible oils in Durban and Richards Bay.
• Outsourcing selected operational and support functions to the private sector to ensure
further development of the maritime industry.
Integrate South Africa with the region and • Grow transshipment volumes by focusing on free trade zones.
the rest of the world • Encouraging the use of Short Sea Shipping by OEMs through the establishment of an
attractive tariff model.
• Establishing port operating partnerships with other African countries.
Optimise the social and economic impact of • Utilising local community resources in the establishment of hinterland terminals.
all interventions undertaken by the SOC in • Actively contributing towards the development of young professionals through our young
the achievement of these objectives professionals-in-training programmes.
• Providing apprenticeship opportunities through the young engineer- and technician-in-
training programmes.
Operational performance
Core initiatives for 2019
• Increase revenue by 8,4% during the financial year.
• Focus on operations and supply chain efficiency enhancements in order to unlock capacity in the bulk sectors, promote additional export
channels for manganese and optimise service delivery within the Durban Container precinct.
• Volume targets for the 2019 financial year:
–– Containers: 4,6 million TEUs
–– Bulk cargo: 86,5 million tonnes
–– Break-bulk cargo: 19,5 million tonnes
–– Automotive units: 725 401 units
• Increase the volume (moves/tons/units) per SWH to turn vessels around faster and attract shipping lines to South African ports.
• Facilitate operational efficiencies across all sectors by improving the reliability and availability of equipment through the implementation of
a preventative maintenance strategy as well as leveraging technology, such as the Internet of Things for asset management.
Transnet Port Terminals 2019
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Overview of key performance indicators
2017 2018 2019 2019 2020
Key performance area and indicator Unit of measure Actual Actual Target Actual Target
Financial sustainability
Revenue R million 11 150 12 393 13 439 13 086 14 797
EBITDA R million 3 794 4 172 4 637 4 541 5 237
Operating profit margin % 20,7 19,9 20,7 23,1 22,7
Return on average total assets % 13,3 15,5 16,5 20,4 17,6
Revenue per employee (permanent) R million 1,6 1,7 1,7 1,8 1,8
Average tariff increase
– Containers % 7,6 5,4 6,0 5,3 6,0
– Automotive % n/a 7,1 6,0 5,5 6,0
Capacity creation and maintenance
Capital expenditure1 R million 1 208 1 365 2 722 1 515 2 877
Operational performance
Volume growth
Containers ‘000 TEUs 4 396 4 664 4 625 4 534 4 863
Break-bulk mt 10,0 11,2 19,5 19,8 21,7
Bulk mt 88,1 91,0 86,5 82,4 85,6
Vehicles units 679 792 704 052 725 401 743 350 724 141
Operational efficiency and productivity
Container dwell time
Durban Container Terminal (DCT) – Pier 1
Imports days 2,7 3,1 ≤3 2,9 ≤3
Exports days 4,7 5,3 ≤5 5,0 ≤5
Transshipment days 5,4 6,6 ≤ 10 5,6 ≤ 10
DCT – Pier 2
Imports days 2,2 2,5 ≤3 2,3 ≤3
Exports days 5,5 6,1 ≤5 5,9 ≤5
Transshipment days 5,9 7,8 ≤ 10 6,7 ≤ 10
Cape Town Container Terminal (CTCT)
Imports days 2,2 2,7 ≤3 2,3 ≤3
Exports days 4,3 5,8 ≤5 5,1 ≤5
Transshipment days 7,2 7,2 ≤ 15 7,0 ≤ 15
Moves per gross crane hour
DCT – Pier 1 moves per hour 26 25 26 24 26
DCT – Pier 2 (prime berths2) moves per hour 24 23 32 21 28
CTCT moves per hour 32 30 33 22 28
Port Elizabeth moves per hour 25 23 25 21 25
Ngqura Container Terminal (NCT) moves per hour 31 25 32 21 28
Container moves per ship working hour
DCT – Pier 1 moves per hour 45 46 50 47 50
DCT – Pier 2 (prime berths2) moves per hour 55 53 65 54 65
CTCT moves per hour 53 45 56 45 56
Port Elizabeth moves per hour 45 37 36 33 36
NCT moves per hour 63 50 66 47 56
Train turnaround time3
DCT – Pier 1 hours 2,9 2,4 4,0 2,3 4,0
DCT – Pier 2 hours 3,5 2,2 4,0 2,0 4,0
CTCT hours 1,0 1,1 4,0 1,3 4,0
NCT hours 3,8 3,9 4,0 3,8 4,0
Saldanha4 minutes 112 105 109 109 109
Richards Bay hours 8,4 8,4 11,0 9,1 11,0
Port Elizabeth hours 9,8 7,9 12,0 7,5 12,0
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2017 2018 2019 2019 2020
Key performance area and indicator Unit of measure Actual Actual Target Actual Target
Truck turnaround time
DCT – Pier 1 minutes 37 35 35 41 35
DCT – Pier 25 minutes 79 72 35 69 65
CTCT minutes 21 36 35 35 35
NCT minutes 32 36 35 36 35
Richards Bay Multi-Purpose Terminal (MPT) minutes 25 22 35 31 35
Loading rate
Saldanha Iron Ore Terminal tons per hour 8 564 8 576 8 100 8 657 8 100
Richards Bay Dry Bulk Terminal (RB DBT) –
Loading – Magnetite tons per hour n/a n/a 1 050 1 236 1 100
RB DBT – Loading – Chrome tons per hour n/a n/a 950 893 950
RB DBT – Loading – Coal tons per hour n/a n/a 800 691 800
RB DBT – Offloading – Coking Coal tons per hour n/a n/a 600 532 650
Sustainable developmental outcomes
Employment
Employee headcount (permanent) number 8 891 8 816 8 132 7 392 8 355
Health and safety
Disabling injury frequency rate (DIFR) rate 0,71 0,67 0,70 0,52 0,70
1
Capital expenditure excludes capitalised borrowing costs.
2
Prime berths for 2018/19 are berths 108, 203 and 204.
3
Based on 50 wagon trains for all container terminals except CTCT which is based on 40 wagon trains.
4
Rake process time inside tippler – subject to service design review.
5
Targets based on historical operational methodology.
n/a – not available.
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Financial performance review
Year ended Year ended
31 March 31 March
2019 2018 %
Salient features R million R million change
Revenue 13 086 12 393 5,6
– Containers 6 587 6 287 4,8
– Dry bulk 3 719 3 522 5,6
– Break–bulk 1 958 1 816 7,8
– Automotive 822 768 7,0
Operating expenses (8 545) (8 221) 3,9
– Energy costs (668) (617) 8,3
– Maintenance (434) (379) 14,5
– Materials (522) (481) 8,5
– Personnel costs (4 492) (4 412) 1,8
– Other (2 429) (2 332) 4,2
Profit from operations before depreciation, derecognition,
amortisation and items listed below (EBITDA) 4 541 4 172 8,8
Depreciation, derecognition and amortisation (1 524) (1 705) (10,6)
Profit from operations before items listed below 3 017 2 467 22,3
Impairments and fair value adjustments (768) (249) 208,4
Net finance costs (62) (252) (75,4)
Profit before taxation 2 187 1 966 11,2
Total assets (excluding CWIP) R million 13 871 15 396 (7,9)
Profitability measures
EBITDA margin1 % 34,7 33,7 1,0
Operating margin2 % 23,1 19,9 3,2
Return on average total assets (excluding CWIP)3 % 20,5 15,5 5,0
Asset turnover (excluding CWIP)4 times 0,9 0,8 12,5
Capital investments5 R million 1 515 1 365 11,0
Employees
Number of employees (permanent) number 7 392 7 096 4,2
Revenue per employee R million 1,77 1,75 1,1
1
EBITDA expressed as a percentage of revenue.
2
Profit from operations before impairment of assets, fair value adjustments, net finance costs and taxation expressed as a percentage of revenue.
3
Profit from operations before impairment of assets, fair value adjustments, net finance costs and taxation expressed as a percentage of average total assets,
excluding capital work-in-progress (CWIP).
4
Revenue divided by average total assets, excluding CWIP.
5
Actual capital expenditure (replacement plus expansion), excluding borrowing costs and including capitalised decommissioning liabilities.
Transnet Port Terminals 2019
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Performance commentary • Capacity in East London’s automotive terminal will expand,
increasing the capacity of the terminal to meet volume forecast.
Financial sustainability • Berth 702 at the RB DBT will be converted from import to
export in order to cater for higher export volumes.
• Revenue grew by 5,6% to R13,1billion (2018: R12,4billion) but
• A combination of a third tippler and a multi-purpose ship loader
fell short of the budget by 3%. This was as a result of poor
at the RB DBT will boost dry bulk exports by an additional
volume performance achieved in the containers, bulk and
4 mtpa.
break-bulk sectors.
• Net operating expenses grew by 3,9% to R8,5 billion from the
prior year (2018: R8,2 billion). While costs have been tightly Operational performance
managed, some of the key drivers of the higher costs were:
Containers
–– Energy, which increased by 8,3% on the back of above-
inflation price increases as well as significant volume growth • Volumes in the container sector were 2% below budget for
in the break-bulk and automotive sector; 2019, declining 2,8% from the prior year.
–– Higher repairs and maintenance costs due to ageing • Export containers were 2,7% above the budget while imports
equipment, particularly in Richards Bay; and and transshipments were 1,5% and 11% below budget
–– Higher materials due to additional component spares and respectively.
materials requirements. • All container terminals were significantly impacted by adverse
• As a result of the above, EBITDA increased by 8,8% to weather conditions throughout the year. Strong winds, fog,
R4,5 billion (2018: R4,2 billion) meeting the 2019 target. The heavy rains and vessel ranging have resulted in intermittent
EBITDA margin increased from 33,7% to 34,7% in 2019. stoppages, long delays and cancellations as shipping lines
• Return on average total asset (ROTA) increased from 15,5% to struggled to maintain schedules. Adverse weather conditions in
20,5% in 2019. This is as a result of higher than budgeted other parts of the world also led to further delays and
operating profits as well as an asset base that was lower than cancellations.
expected. The latter was impacted by capital spend • The Durban terminals performed well during the reefer season,
prioritisation and asset impairments. however, bad weather combined with equipment and labour
challenges resulted in both Pier 1 and Pier 2 not achieving their
Looking ahead full-year budgets.
• Port Terminals anticipates an increase in revenue of 13% to • The NCT had a slow start to the year as the local economy
R14,8 billion in the 2020 financial year. continues to deteriorate, however, strong performance in the
• There will be strong focus on operational efficiency and last quarter helped the terminal finish the year 0,7% ahead of
unlocking new business initiatives while enhancing a high its budget.
performance culture across the division. • The Port Elizabeth Container Terminal suffered a massive blow
during the year when one of its cranes fell into the harbour
Capacity creation and maintenance during adverse weather conditions and another crane was taken
out of operation for safety reasons. This left the terminal with
• Capital expenditure for the year was R1,5 billion, falling only one crane to service the vessels calling at the terminal.
marginally short of the adjusted budget of R1,64 billion. This • CTCT has been severely impacted by deteriorating weather
was primarily as a result of contract non-awards and completion conditions, with some customers opting to bypass the terminal,
delays on the Caillard refurbishment project at Richards Bay. which resulted in the terminal volumes falling 5,3% below
• Phase 1 of the Saldanha Refurbishment Programme was budget.
completed in 2019.
• Refurbishment of Shed 12 and railway replacement was Bulk
completed in Maydon Wharf.
• Equipment deliveries, which will improve the fleet reliability and • Volumes in the bulk sector ended the year 4% below budget,
operational efficiencies, included: representing a 0,9% decline from the previous year.
–– 10 x Empty Container Handlers at DCT Pier 2; • The high demand for manganese continued in 2019 with Port
Terminals opening up new channels in an effort to meet the
–– 18 x Haulers at DCT Pier 1;
required demand. Two new back-of-port facilities in Lohatla and
–– 1 x Rail-mounted gantry crane at CTCT;
Newcastle were opened in 2019, in addition to the ports of
–– 10 x Excavators at Richards Bay Dry Bulk Terminal Durban and Richards Bay starting to export manganese during
(RB DBT); and the year.
–– 3 x 18-tonne forklifts and 3 x 32-tonne forklifts for Saldanha
• Iron ore volumes ended the year 2,7% below budget as a result
Multi-Purpose Terminal.
of a number of supply chain challenges experienced during the
year. These challenges include a number of derailments, tippler
Looking ahead breakdowns, an incident which damaged a rail bridge and
Planned five-year capacity creation projects to facilitate volume adverse weather conditions that led to intermittent stoppages.
growth include the following: These challenges have also resulted in lower stockpiles and
• The Cape Town phase 2B project, which involves resurfacing lower volumes exported.
work and the creation of a truck staging area and ancillary • Magnetite volumes did not perform well as a result of low
works, will increase the terminal’s capacity by 0,4 million TEUs, demand for certain grades as well as production challenges
from 1,0 million TEUs to 1,4 million TEUs. experienced at the mines.
• The introduction of mobile ship loaders at the Saldanha • Coal volumes were below budget as demand reduces in an effort
Multi-Purpose Terminal will increase its capacity from to curb carbon emissions.
8,7 mtpa to 10 mtpa. • Chrome volumes were impacted by low volumes in the first
• The berth deepening and lengthening at the North Quay of quarter as well the potential trade war between China and the
DCT Pier 2 will restore berth capacity to 2,9 million TEUs. US on Chinese steel imports.
Transnet Port Terminals 2019
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Break-bulk Operational excellence
• Break-bulk volumes performed well, exceeding the budget by
Container moves per ship working hour
1,6% and growing 4,1% from the prior year.
• Manganese volumes performed well in both Saldanha and • Port Terminals’ primary measure of operational efficiency,
Port Elizabeth, resulting in both terminals exceeding their average moves per SWH has improved across most container
annual budgets. terminals despite not meeting the 2019 targets.
• The Durban multi-purpose terminal also exceeded its budget as • Durban Container Terminal’s Pier 1 has improved its SWH
a result of good steel performance after the relaxation of performance from 46 to 48 moves in 2019, while DCT
import duties and the Safe Guard Duty introduced by Pier 2 has marginally increased its SWH from 53 to 54 moves.
Government to protect the local industry. Both terminals were severely impacted by inclement weather,
congestion due to high stack occupancy during the peak reefer
Automotive season and insufficient availability and reliability of key
operating equipment.
• Automotive volumes showed good performance, ending the
• The CTCT’s SWH has also increased marginally to 46 moves from
year 2,5% ahead of budget, boasting 5,6% growth from the
45 moves in the prior year. These improvements have been
prior year.
achieved despite the terminals experiencing operational
• The Durban Car Terminal ended the year 7,4% above budget,
challenges due to adverse weather conditions.
however, the Port Elizabeth and East London terminals were
• The NCT SWH has decreased from 50 to 47 moves due to
impacted by the emissions legislation in the UK requiring a
limitations in people resources, which is being addressed. The
specification rework of vehicles. This led to a slowdown in
terminal has also experienced a significant decline in weather
exports while manufacturers adapted to the new legislation.
conditions, which has had a negative impact on operations.
Looking ahead
Moves per gross crane hour
Volume targets for the 2020 financial year:
The average moves per gross crane hour declined to
• Containers: 4,86 million TEUs
22 moves (2018: 25 moves), falling short of the 2019 targets
• Bulk cargo: 85,6 million tons
across the container terminals. Some of the key reasons include
• Break-bulk cargo: 21,7 million tons the significant deterioration in weather conditions over the past
• Automotive units: 724 141 units year and the poor reliability and availability of key operating
equipment.
Port Terminals will:
• Implement Port Terminals’ core container strategy to increase Train turnaround time
maritime connectivity, grow rail market share and transform
into a logistics service provider. The container terminals maintained their train turnaround time
• Increase maritime connectivity through improvements in service below the targeted four hours in 2019 while the bulk terminals
levels, appropriate pricing solutions, capacity creation projects maintained their train turnaround times at the targeted
and the introduction of value-added services. 109 minutes at Saldanha and below the targeted 11 and
• Maximise manganese throughput through the use of inland 12 hours at Richards Bay and Port Elizabeth respectively.
terminal networks and back-of-port facilities.
• Maximise magnetite throughput by providing an integrated Truck turnaround time
logistics service offering to support the beneficiated magnetite The average truck turnaround time was 42 minutes against a
volumes coming out of the Phalaborwa complex. target of 35 minutes. The terminals were impacted by equipment
• Maximise chrome ore and ferrochrome volumes through the use challenges and weather delays, which resulted in delays in turning
of inland terminal networks and back-of-port facilities, around trucks inside the terminals.
culminating in an integrated Transnet logistics service offering.
• Leverage existing partnerships to maximise and grow coal Looking ahead
volumes via Richards Bay export facilities.
Port Terminals will:
• Rollout the PSP programme to increase agricultural volumes in
Durban and East London. • Seek to increase SWH to 53 moves on average in the
2020 financial year by focusing on the following efficiency
• Create capacity ahead of demand for the increase in automotive
improvements:
volumes in Durban over the next five years.
–– Resourcing gangs and supporting equipment to maximise
• Increase the volume (moves/tonnes/units) per ship working hour
crane deployment across vessels;
(SWH) to turn vessels around faster and attract shipping lines
to South Africa. –– Employing wind mitigation strategies such as anti-sway
technology on cranes as well as new technology to address
• Collaborate closely with Freight Rail and the National Ports
Authority to improve operational efficiencies and strengthen vessel ranging;
Port Terminals’ position as a gateway terminal to serve both –– Working collaboratively with shipping lines to optimise
local and regional economies. stowage, thus enabling higher productivity;
• Develop competitive value propositions to provide customers –– Leveraging technology to enable more efficient planning of
with complete logistics solutions through supply chain vessels; and
integration. –– Creating a base layer of business intelligence and prescriptive
• Leverage technology to improve customer experience and analysis of operational statistics.
service offerings. • Maintain truck turnaround time below the target of 41 minutes.
Transnet Port Terminals 2019
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• Maintain train turnaround times below four hours at the • 189 artisans were assessed on outcomes-based modular
container terminals, 12 hours at the Port Elizabeth bulk learning.
terminal, 11 hours at the Richards Bay bulk terminal and 109 • A total of 836 employees trained on Lean Six Sigma.
minutes at the Saldanha iron ore terminal. • Youth programme activities in Port Terminals include:
• Work collaboratively with the National Ports Authority to –– 103 apprentices in training;
minimise the impact of infrastructure projects on operations. –– 34 young professionals in training; and
• Focus on cultivating an innovative culture and establishing –– 15 engineers in training.
partnerships with other organisations for research and
development. Health and safety
• Port Terminals achieved a DIFR of 0,52 against a target of 0,70.
Sustainable Developmental Outcomes
Human capital (employment and transformation) Community development (social
• Port terminals achieved a permanent employee headcount of accountability)
7 392 against the target of 8 132. Highlights for the reporting period include:
• Black employees represented 88% of the total employee base • Port Terminals, together with supplier Fast World Industries and
against a target of 89%. City Late, donated a new classroom to Yiboni Primary school in
• Female employees represented 28% of the total employee base May 2018. The joint initiative was part of an ongoing objective
against a target of 32%. to leverage off relationships with suppliers for the benefit of
• People with disabilities represented 1,4% of the total employee the communities in which Port Terminals operates.
base target of 3,2%. • Port Terminals also held a number of blood donation drives
• Port Terminals achieved its objective of obtaining a B-BBEE across the country in an effort to assist the South African
scorecard rating of level 3. National Blood Services (SANBS) to build up stocks.
• Employees from Port Terminals donated clothing and blankets
Skills development on 18 July 2018, as part of celebrating Nelson Mandela Day. The
donations were distributed to St Monica’s Old Age Home and the
• Port Terminals spent 3,2% (direct, indirect and skills levies cost) Addington Children’s Home.
of its total labour bill on employee training and skills • The sustainability team donated vegetables harvested from the
development. Head Office vegetable gardens to the Wentworth Aids Action
• A total of 949 employees underwent sector-specific training, Group (WAAG). The WAAG provides a hot meal daily to children
such as Operator: Lifting Equipment (OLE), Operator: Bulk between the ages of 6 and 18 years from the soup kitchen.
Handling Equipment (OBHE), Cargo Co-ordinators (CC) and • The sustainability team and employee volunteers
Planners. An additional 1 115 employees completed refresher commemorated Arbour Day by donating and planting 12
and recertification training. indigenous trees at Charles Hugo Primary School in Sydenham.
• A total of 237 managers and supervisors underwent various • Port Terminals marked 16 days of Activism against women and
leadership programmes. child abuse with Head Office employees participating in a march
to create awareness.
Key risks and mitigating activities
The following table details Port Terminals’ top five risks and the key mitigating activities.
Key risks Mitigating activities
Deterioration in macroeconomic • Quarterly presentation of commodity and customer profitability analysis
environment leading to low margins • Identification of new revenue streams
• Benchmarking cost structures and efficiencies across terminals
Inability to fund capital projects leading to • Revise current capital prioritisation tool in line with Transnet’s digital strategy and
capacity constraints, operational Port Terminals’ Top Five in Five strategy
inefficiencies and loss of market share • Implement post implementation reviews as per policy
• Monthly reporting of delays in capital spend to Port Terminals’ Capital Investment
Committee
Operational inefficiencies leading to • Roll out of overall equipment efficiency monitoring
customer dissatisfaction • Implementation of spreader anti-sway system for rubber-tyre gantry cranes at CTCT
• Straddle improvement project for CTCT
• Acquisition of 18 haulers for DCT
• Roll out the Scientific Gang configuration tool
• Reskill OLEs at DCT Pier 1 and Pier 2 to improve performance
• Review business processes (governance framework for standardisation)
• Six Sigma trainingTransnet Port Terminals 2019
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Key risks Mitigating activities
Adverse sustainability events leading to • Business continuity management simulations are conducted for various scenarios
business disruption (e.g. droughts, storms • Increase capacity of reverse osmosis plant in Saldanha
and energy shortages) • Refurbishment of the Richards Bay water recycling plant (Delkor)
• Treatment of the borehole water for Richards Bay
• Disaster management plan
• Communication of weather information
Ageing critical equipment leading to • Upgrade of the ship unloaders in Richards Bay
business discontinuity • Commissioning of the Durban Agriport Substation
• Execution and commissioning of the Saldanha Tippler 3 project
• Refurbishment of the shiploader for Durban Agriport
• Replacement of the Durban Agriport ship unloader
• Implementation of the Richards Bay stacker replacement project
• Saldanha equipment refit project
• Refurbishment of cranes on the East Quay at the DCT
• Richards Bay tippler 1 and 2 capacity upgrade project
Opportunities
• There is growing demand for Port Terminals’ current services as
well as opportunities to expand service offerings across the
transport value chain. Opportunities are being explored
back-of-port to offer warehousing and value-add services in the
container, mineral bulk and automotive segments.
• Support of Transnet’s International Strategy by applying
strengths and capabilities to countries in Africa.
• PSP opportunities which may reduce funding and operational
requirements and present opportunities for leveraging the
capabilities of partners for mutual benefit.
• The Transnet Value Chain Co-ordinator continues to facilitate
improvements in operational efficiencies and logistics
integration with Freight Rail. This creates opportunities to shift
more cargo from road to rail, which will ease congestion on the
roads and reduce carbon emissions for a more sustainable
future.
• Offer tailor-made solutions to OEMs in the automotive industry.
• Partner with Government departments, such as the Department
of Trade and Industry in order to attract new OEMs.Transnet Port Terminals 2019
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Abbreviations
B-BBEE Broad-Based Black Economic Empowerment
CTCT Cape Town Container Terminal
DCT Durban Container Terminal
DIFR Disabling injury frequency rate
EBITDA
Earnings before interest, taxation, depreciation and amortisation
mtpa Million tons per annum
NCT Ngqura Container Terminal
OEM Original equipment manufacturer
PSP Private sector partnership
RB DBT Richards Bay Dry Bulk Terminal
SHEQ Safety, Health, Environment and Quality
SOC State-Owned Company
TEU Twenty-foot equivalent unitYou can also read
