TRANSNET PORT TERMINALS - Increasing efficiency and integration of activities in Africa

Transcription

1 TRANSNET PORT TERMINALS - Increasing efficiency and integration of activities in Africa Karl Socikwa, CEO Transnet Port Terminals - 29 January 2014

2 TABLE OF CONTENTS TIME FOR AFRICA INDUSTRY TRENDS INTRA REGIONAL TRADE INFRASTRUCTURE DEVELOPMENT POLICIES AND TRADE AGREEMENTS 1

3 TIME FOR AFRICA delivering freight reliably 2

4 54 COUNTRIES delivering freight reliably 33

5 38 COUNTRIES WITH PORTS Algiers (Algeria) delivering freight reliably Cotonou Lagos Abidjan (Nigeria) (Côte d'ivoire) Tema, (Benin) Douala Takoradi (Cameroon) (Ghana) Libreville (Gabon) Pointe Noire Matadi (Congo) Luanda (Angola) Lobito (Angola) Walvis Bay (Namibia) Maputo (Mozambique) Mombasa (Kenya) Dar es Salaam (Tanzania) Tanga (Tanzania) Toamasina Nacala (Madagascar) (Mozambique) Beira (Mozambique) Port Louis (Mauritius) Richards Bay (SA) Durban (SA) Cape Town (SA) East London (SA) Ngqura (SA) Port Elizabeth (SA) 4

6 AFRICA STRATEGY GROWTH DRIVEN BY GDP Southern Africa Economic Outlook Source: World Bank Report Country Angola Botswana DRC Lesotho Madagascar Malawi Mauritius Mozambique Namibia Seychelles South Africa Swaziland = Rapid growth areas Tanzania Zambia

7 SADC CHALLENGES The SADC region is regarded as the next growth frontier due to its extensive minerals wealth, growth in consumer populations and relatively good infrastructure, road in particular:- Key challenges hinders its growth and trade remain strained; Poor infrastructure, low density across transport networks, inefficient border processes and fragmented regulatory environments continue to dog it; Much of rail and port infrastructure was built for resource extraction rather than to facilitate trade; Landlocked countries within the region require efficient transport links to and from the sea in order to enjoy competitive prices for landed goods and exports to global markets; Most ports within the region currently operate near capacity and experience delays due to poor integration with other transport modes and slow clearance processes; and The SADC region must attain the goal of becoming a seamless, cost-effective, fully integrated and internationally competitive region with appropriate and substantial investments in road, rail and ports to secure the future of the region. 6

8 KEY INTERVENTIONS REQUIRED RESPONSE TO CHALLENGES Ports to improve Inter-Regional Trade Development of SADC ports that connect to the world regions growing maritime trade Development of ports that are efficient transhipment hubs connected to rail Terminal and Warehousing facilities Distribution centres for product to reach markets in the region Lowering inventory costs Working together to satisfy customers to reduce the cost of doing business to improve regional competitiveness 7

9 TABLE OF CONTENTS TIME FOR AFRICA INDUSTRY TRENDS INTRA REGIONAL TRADE INFRASTRUCTURE DEVELOPMENT POLICIES AND TRADE AGREEMENTS 8

10 Geographical context Global context SA s distance from international markets results in high maritime transport costs SA well placed to service Southern African and most BRICS shipping trade routes Opportunity to position SA as global transshipment hub focusing on selected trade routes Transnet Long-term Planning Framework 2012 Regional context SA well positioned to serve African east and west coasts by sea SA s rail network provides strategic and common-gauge connectivity to neighbouring SADC countries Regional partnerships will stimulate and sustain regional growth National context Gauteng industrial and mining area remains regional production and consumption hub despite distance from nearest ports Transnet s key role is to assist in economic growth through providing appropriate, cost-effective and efficient port, rail and pipeline infrastructure and operations Continued emphasis on alignment with New Growth Path, management of Carbon footprint, private-sector participation, and job creation 9 9

11 Industry trends Globalisation Trade Patterns Road/Rail Ports Sustainability Increased international freight flows a fundamental component of recent changes in global, regional and local economic transport systems Evidence of recession in small reduction in freight tonnage handled Some evidence of recovery from the debilitating effects of the past few difficult years (from an economic and trade point of view 2007: Industrial and Commercial Bank of China buys 20% stake in Standard Bank (US$5,4 billion) - China s largest-ever foreign investment 2009: China-South Africa trade reaches $17,9 billion - China becomes South Africa s largest trading partner 2010: India-South Africa trade reaches US$11,1 billion - increases to US$15 billion by : 26 African countries create a US$1 trillion Southern/Eastern/Ce ntral African free trade area Road/rail tonnage split almost static Only profitable rail infrastructure being investing in - large components, notably rural branch lines, not used and becoming increasingly dilapidated Worldwide trend toward road reversing as rail becomes more competitive as a sustainable transportation mode Single wagon business being replaced by hub-tohub Intermodal solutions becoming increasingly important (especially in manufacturing sector) Worldwide trend towards greater specialisation, centralisation, economies of scale, larger vessels and larger parcel sizes Current upward trend in average size of container-carriers ( DWT) and bulkers ( DWT) Growing international over-ocean trade to 11 billion tones pa by 2020 at 3% pa yearon-year growth rate International shipbuilding peaked in 2010 at 96 million tons (previous peak in 1975 at 36 million tons) Supply-chains used to develop and sustain competitive advantage Increasing pressure to transform logistics to meet greening the requirements Impact of logistics on climate change more topical because of realisation of immediacy and magnitude of global warming 10 10

12 TRENDS IN THE SHIPPING INDUSTRY - 10 New 18,000 TEU ships ordered by Maersk Source: Nick Souza Photography Marine Traffic 11

13 VESSEL SIZES If all the 20 Foot Equivalent Unit (TEU) sized Containers from the world's largest container ship, the Emma Maersk were to be put on one train, the train would be more than 70 km long. Years Produced Capacity (TEUs) Length (m) Draft (m) Generation 1 st Early Containership < Fully Cellular nd - Panamax Panamax Max rd Post-Panamax Post Panamax Plus th New Panamax th Post New Panamax Tripple E TEU s Source: Geography of Transport Systems 12

14 SOUTHERN HUB FOR WORLD SHIPPING ROUTES The position of South Africa s ports system enables it to access to South-South trade, Far East trade, Europe & USA, East & West Africa regional trade Shortest Trade Route between Shangai and Santos is via South Africa 11,270nm = knots via Panama Canal13,130nm = 26 days + transit fee via Suez Canal 13,590nm = 27 days + transit fee 13

15 GREATER COLLABORATION NEEDED BETWEEN AFRICAN PORTS Algiers (Algeria) Port Said (Egypt) Dakar (Senegal) Monrovia (Liberia) Abidjan (Côte d'ivoire) Tema, Takoradi (Ghana) Lome (Togo) Cotonou (Benin) Lagos (Nigeria) Douala (Cameroon) Libreville (Gabon) Mombasa (Kenya) Pointe Noire Matadi (Congo) Luanda (Angola) Lobito (Angola) Walvis Bay (Namibia) Dar es Salaam (Tanzania) Tanga (Tanzania) Beira (Mozambique) Maputo (Mozambique) Richards Bay (SA) Nacala (Mozambique) Toamasina (Madagascar) Port Louis (Mauritius) Durban (SA) Source: Team analysis Cape Town (SA) East London (SA) Ngqura (SA) Port Elizabeth (SA) 14

16 ROLE OF GOVERNMENTS IN TRADE GROWTH Dakar (Senegal) Algiers (Algeria) Port Said (Egypt) delivering freight reliably Cotonou Lagos Abidjan (Benin) Tema, (Nigeria) (Côte d'ivoire) Takoradi Douala (Ghana) (Cameroon) Luanda (Angola) Lobito (Angola) Mombasa (Kenya) Dar es Salaam (Tanzania) Walvis Bay (Namibia) Maputo (Mozambique) Richards Bay (SA) Durban (SA) Cape Town (SA) Ngqura (SA) 15

17 POLITICAL WILL - The AU has identified 14 corridors for development Kenitra-Casablanca Corridor 6 2 Greater Cairo Region 3 The Dakar-Touba corridor (Touba-Mbackѐ) The Greater Ibadan-Lagos-Accra (GILA) urban corridor 5 The great Haoussa-Yoruba-Anshanti city triangle (GHAYA-CT) 6 The Emerging Luanda-N Djamena corridor 6 7 The Kampala-Entebbe corridor 8 Nairobi metropolitan region 9 Walvis Bay corridor North South corridor (Cape Town-Johannesburg-Harare-Lusaka- Dar es Salaam) The Maputo-Gauteng development corridor Durban development corridor Beira corridor 14 Maputo-Limpopo corridor Source:E&Y Report Time for Africa 16

18 TRENDS IN ROAD TRANSPORT - EXISTING ROAD NETWORK Dakar (Senegal) Dakar (Senegal) Algiers (Algeria) Algiers (Algeria) Port Said (Egypt) Port Said (Egypt) Abidjan Lagos (Côte d'ivoire) Tema, Cotonou (Nigeria) Takoradi (Benin) Douala (Ghana) (Cameroon) Mombasa (Kenya) Luanda (Angola) Lobito (Angola) Dar es Salaam (Tanzania) Walvis Bay (Namibia) Maputo (Mozambique) Richards Bay (SA) Durban (SA) Cape Town Source: Joost Bonsen Ngqura (SA) 17

19 TRENDS IN RAIL TRANSPORT - EXISTING RAILWAY LINES Dakar (Senegal) Algiers (Algeria) Port Said (Egypt) delivering freight reliably Cotonou Lagos Abidjan (Benin) Tema, (Nigeria) (Côte d'ivoire) Takoradi Douala (Ghana) (Cameroon) Luanda (Angola) Lobito (Angola) Mombasa (Kenya) Dar es Salaam (Tanzania) Walvis Bay (Namibia) Maputo (Mozambique) Richards Bay (SA) Durban (SA) Cape Town (SA) Ngqura (SA) Source: 18

20 Market share rail alignment process What is suitable freight for rail? Longer distances Short-haul distribution is more efficient on road High volumes Rail is a bulk mover Big parcels in a single move Commodity type Typically bulk minerals/heavy goods/containers Corridor effect Concentrated corridors attract more traffic Road friendly Road or rail Rail friendly Setting the ideal rail vs road market share split is a fundamental driver for future rail demand 19

21 TABLE OF CONTENTS TIME FOR AFRICA INDUSTRY TRENDS INTRA REGIONAL TRADE INFRASTRUCTURE DEVELOPMENT POLICIES AND TRADE AGREEMENTS 20

22 WHAT ARE THE CHALLENGES TO TRADE? delivering freight reliably 12% 21 21

23 National Freight Demand (Surface Freight Flows) (mtpa) National freight demand projection ,8 Mining dry bulk Light break bulk Ro-ro-Tons ,1 Refrigerated Container-Tons Palletized , , ,2 Agricultural dry bulk Heavy break bulk Liquid bulk Open Skip bulk 918, , % increase in surface freight flows Major shift from road to rail transport Significant impact on surface transport infrastructure capacity 22 22

24 Transportation Model flow results All traffic road, rail, pipe and air High volumes Medium high volumes Low medium volumes Low volumes 5,4 77,6 49,4 4,

25 Transportation Model flow results All traffic road, rail, pipe and air High volumes Medium high volumes Low medium volumes Low volumes 5,8 90,6 61,1 5,

26 Transportation Model flow results All traffic road, rail, pipe and air High volumes Medium high volumes Low medium volumes Low volumes 8,6 132,2 119,5 5,

27 TRANSNET PORT TERMINALS #1 Terminal Operator in Africa Company 2011 Total Throughput 000 TEU 2011 Equity Throughput ( 000 TEU) Equity TEU as % of Regional Throughput 1 Transnet Port Terminals 4,403 4, % 2 APM Terminals 7,640 4, % 3 Bolloré Africa Logistics 3,348 1, % 4 DP World 2,094 1, % 5 Port Said CCHC % 6 Damietta CCHC % 7 CMA CGM/Terminal Link 1, % 8 Cosco Pacific 3, % 9 Hutchison Port Holdings % 10 Alexandria CHC % Transnet s hold on the top ranking for terminal owning/operating companies in Africa will make them an ideal partner. Source: Drewry on Africa 26

28 TABLE OF CONTENTS TIME FOR AFRICA INDUSTRY TRENDS INTRA REGIONAL TRADE INFRASTRUCTURE DEVELOPMENT POLICIES AND TRADE AGREEMENTS 27

29 DURBAN

30 DURBAN CONTAINER TERMINALS 29

31 DURBAN MPT TERMINALS POINT RORO 30

32 DURBAN MPT TERMINALS POINT RORO DURBAN MPT TERMINALS MAYDON WHARF, AGRI 31

33 RICHARDS DURBAN BAY MPT TERMINALS POINT RORO RICHARDS BAY TERMINALS 32

34 RICHARDS BAY DRY BULK TERMINALS 33

35 DURBAN MPT TERMINALS POINT RORO PORT ELIZABETH 34

36 DURBAN MPT TERMINALS POINT RORO PORT OF OF NGQURA 35

37 PORT OF EAST LONDON 36

38 PORT OF CAPE TOWN 37

39 SALDANHA BAY 38

40 NGQURA CONTAINER TERMINAL MDS - PORT EXPANSION PLANS Port - EVOLUTION of Ngqura OVER 10 YEARS AFTER: 2010 Ngqura Container Terminal BEFORE: Coega River mouth Nov-2002 current: 2013 Ngqura Container Terminal Futuristic Expansion Options

41 DURBAN MPT CONTAINERS TERMINALS POINT RORO PORT OF NGQURA - CURRENT LAYOUT Salisbury Island Navy Base DCT Pier 2 DCT Pier 1 DCT Reconfiguration Study

42 DURBAN MPT CONTAINERS TERMINALS POINT RORO PORT - POSSIBLE OF NGQURA FUTURE LAYOUT Consolidated Salisbury Island Navy Base Interim upgrade of Pier Rail Terminals Pier 1 with new Salisbury Island infill and deep-water berths Total cost: R 6.3b Pier 2 with deepened berths and new tandem cranes Total cost: R 5.6b DCT Reconfiguration Study

43 DURBAN MPT CONTAINERS TERMINALS POINT RORO PORT LONG OF TERM NGQURA POTENTIAL LAYOUT New rail terminals and back-of-port facilities Infill between Pier 1 and Pier 2. Durban Container Terminal reconfigured to RMG operation DCT Reconfiguration Study

44 DURBAN FUTURE EXPANSION MPT TERMINALS PLANS FOR POINT DURBAN RORO PORT - Ex Durban OF NGQURA International Airport (DIA) Site Port of Durban Mondi Sapref Refinery Isipingo Old Durban Airport Umlazi N2 Freeway Toyota Factory 43

45 DURBAN FUTURE PLANS MPT TERMINALS FOR DURBAN POINT RORO PORT - Artist s OF NGQURA View of the new Dig-Out Port at ex-dia Site Port of Durban New Dig-Out Port Liquid Bulk Terminal Breakwater and Entrance Channel Container Terminals Automotive Terminal 44

46 TABLE OF CONTENTS TIME FOR AFRICA INDUSTRY TRENDS INTRA REGIONAL TRADE INFRASTRUCTURE DEVELOPMENT POLICIES AND TRADE AGREEMENTS 45

47 THE AU HAS IDENTIFIED 14 CORRIDORS FOR DEVELOPMENT Kenitra-Casablanca Corridor 6 2 Greater Cairo Region 3 The Dakar-Touba corridor (Touba-Mbackѐ) The Greater Ibadan-Lagos-Accra (GILA) urban corridor 5 The great Haoussa-Yoruba-Anshanti city triangle (GHAYA-CT) 6 The Emerging Luanda-N Djamena corridor 6 7 The Kampala-Entebbe corridor 8 Nairobi metropolitan region 9 Walvis Bay corridor North South corridor (Cape Town-Johannesburg-Harare-Lusaka- Dar es Salaam) The Maputo-Gauteng development corridor Durban development corridor Beira corridor 14 Maputo-Limpopo corridor Source:E&Y Report Time for Africa 46

48 ENABLING ENVIRONMENT REGIONAL INTEGRATION Political Stability and Will Policy & Legislation Infrastructure Development Southern African countries working together for regional growth and development Funding Framework (Local and international ventures) Sustainable Economic Growth Skills Development Railway, Ports & Terminal Infrastructure require deliberate intervention 47

49 IMPACT OF BRICS delivering freight reliably

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