TRANSNET DIVISIONS PARTNER IN THE SUPPLY CHAIN SOLUTION FOR THE GAUTRAIN PROJECT Durban - 09 November 2007 A two-year contract was signed on Wednesday, 07 November 2007 between Transnet Port Terminals (TPT), Transnet Freight Rail and cargo agent Logistic and Freight Solutions for the transportation of imported rail tracks to be used in construction of the Gautrain Project. Under the agreement, TPT’s Durban Multipurpose Terminal (MPT) will handle about 20,000 tonnes of 18 metre abnormal rail tracks imported from Corus Rail in France, during the forthcoming 12 to 18 months. The Gautrain Project is a Public Private Partnership (PPP) Project. The Gauteng Provincial Government is the primary driver of the Gautrain and the National Department of Transport is a key supporter and stakeholder. The Bombela Concession Company, Gautrain’s concessionaire, is made up of five entities. Each brings particular skills to bear on South Africa’s largest transport infrastructure project. Four of the five entities are sponsor companies owning 25% of the shares in Bombela. Bombela has a 19,5-year concession agreement with the Gauteng Province for construction (4,5 years) and operating and maintenance (15 years). Up to 1,500 tonnes of tracks are to be imported every month through Durban MPT to construct the 80 kilometre rail route from Johannesburg to Tshwane, including the route between Sandton and the OR Tambo International Airport. 1 UTi South Africa (UTi), the lead service provider, in conjunction with supply chain consultants, Value Added Logistics Solutions (VALS), has spent the past 12 to 18 months designing the supply chain in which Durban MPT plays an integral role via Logistics and Freight Solutions, a Durban-based company. Logistics and Freight Solutions was appointed to manage the Transnet-related activities by UTi South Africa. Whilst UTi is only responsible for the land-side logistics, the supply chain optimisation process included engaging all stakeholders in the supply chain including Corus Rail, the Port of Antwerp, Macs Shipping Lines, Transnet Port Terminals, Transnet Freight Rail, VALS and Transcor. The complexity of the operation is compounded by the fact that the rail tracks constitute abnormal cargo with finite capacity constraints at various points in the chain. Earle Peters, TPT Business Unit Executive at Durban MPT, said the two-year agreement between his organisation and Logistic and Freight Solutions illustrated confidence in the Port of Durban and its MPT. “This strategic partnership recognises the key role Durban MPT has to play in establishing South Africa as an international player in both the freight and transport sectors,” he said. Pieter Venter Managing Director of Logistics and Freight Solutions said, “Negotiations between TPT and our company have been underway for between 12 to 18 months, following Logistics and Freight Solutions’ appointment by UTi South Africa (lead logistics service provider) and VALS (supply chain consultants) to manage the Transnet related activities. The contract called for a professional, world-class handler that could provide a reliable, consistent, safe and integrated freight service within tight deadlines. TPT and its Durban MPT satisfied these requirements, as stipulated by UTi, VALS and their customer, Bombela Track Company,” he said. He added that while normal imports are handled every day through South Africa’s terminals, project cargo like the Gautrain rail components could pave the way for future ambitious initiatives in South Africa. 2 After successfully discharging the first shipment of rails in October, the second consignment of rail tracks, manufactured by French steel manufacturer Corus Rail, arrived in Durban from France on the Diamond Land breakbulk vessel owned by Macs Shipping Lines in the early hours of Wednesday, 07 November. Discharge commenced on Thursday, 08 November, following which the tracks would be transported to Transnet’s staging point at Natalspruit utilising a dedicated block train supplied by Transnet Freight Rail. Thereafter the rails would be transported by road on specially designed trailers owned by VALS and operated by Transcor to Bombela Track’s inland construction site in Midrand. Bombela Track Company, a Bombardier / Strategic Partners Group joint venture company, has been charged with construction of nearly R1 billion of Gautrain’s trackwork. Ends Issued by: Jozi Donjeany Simeka TWS Communications Tel. 031 203 9800 Cell: 076 153 8286 [email protected] On behalf of: Lunga Ngcobo GM: Corporate Communications Transnet Port Terminals Tel. 031 308 8333 [email protected] 3 .