TRANSNET SOC LIMITED - Transnet shortlists respondents from RFQ process for Durban Container Terminal Pier 2 and Ngqura Container Terminal

Transnet shortlists respondents from RFQ process for Durban Container Terminal Pier 2 and Ngqura Container Terminal

Transnet SOC Limited
(Incorporated in the Republic of South Africa)
(Registration Number: 1990/000900/30)
Issuer Bond Code: BITRA
(“Transnet”, “the Company” or the “Issuer”)

 TRANSNET   SHORTLISTS   RESPONDENTS   FROM    THE  REQUEST    FOR
 QUALIFICATIONS PROCESS FOR DURBAN CONTAINER TERMINAL PIER 2 (DCT2)
 AND NGQURA CONTAINER TERMINAL (NCT)

 Transnet has reached a significant milestone in its programme to upgrade two of South Africa’s
 key ports, with the shortlisting of respondents for private sector participation in the DCT2 and
 NCT. The intention is to create a 25-year special purpose vehicle (SPV) between Transnet Port
 Terminals (TPT) and the winning bidders, which will not require the disposal or sale of any of
 the terminal assets. After 25 years the terminals would revert fully to TPT.

 Transnet will issue Request for Proposals (RFPs) to the shortlisted respondents from the
 Request for Qualifications process, which is the third phase in the process to upgrade the two
 terminals. The process started with the issuing of Requests for Information (RFI) to the market
 in 2021. The RFI process was initiated to establish appetite from local and global industries to
 partner with Transnet in the port improvement plans intended to increase throughput and
 efficiencies at the ports, and to ensure full utilisation of the capacity in Ngqura in particular,
 and thus contribute positively to South Africa’s competitiveness.

 The improvement in port efficiencies will support South Africa’s competitiveness and our ability
 to grow jobs in the manufacturing and export economy. Partnering with global port terminal
 operators and shipping lines offers the opportunity to attract much-needed investment, instill
 best-practice management and enhanced technological capability to rapidly improve the
 performance and volume throughput at the Ports of Durban and Ngqura.

 Transnet is repositioning Durban as a gateway hub port, and plans for significant growth in
 container capacity over the coming years. As part of the port masterplans, Transnet aims to
 improve commercial performance and throughput at DCT2 by bringing in a partner with
 international terminal operations experience.

 The NCT, located at the Port of Ngqura in the Eastern Cape, serves as a transshipment port
 serving East and West coast African traffic and traffic from South America to Asia. The terminal
has been loss-making for a number of years. The preferred bidder will be expected to bring
in additional transshipment volumes and improve terminal performance.

The shortlisted companies – ten (10) for DCT2 and four (4) for NCT – will have until December
2022 to submit their proposals for adjudication. The shortlisting is subject to a due diligence
process to be undertaken by Transnet.

For DCT2, the following ten (10) respondents have been shortlisted and will be invited to
proceed to the RFP process:

    1. APM Terminals AMI Management DMCEST
    2. China Harbour Engineering Company Ltd and Guangzhou Port Co. Ltd
    3. COSCO Shipping Ports Limited
    4. DP World Limited
    5. Global Ports Services Pty. Ltd
    6. Grindrod Freight Services (Pty) Ltd and Hamburger Hafen Und Logistik
        Aktiengesellschaft
    7. International Container Terminal Services, Inc.
    8. Red Sea Gateway Terminal and MMC Port Holdings Sdn Bhd
    9. Star Classic Investments Limited and Abu Dhabi Ports
    10. Terminal Investment Limited and REMGRO Limited

For NCT, the following four (4) respondents have been shortlisted and will be invited to
proceed to the RFP process:

    1. APM Terminals AMI Management DMCEST
    2. Red Sea Gateway Terminal and MMC Port Holdings Sdn Bhd
    3. Star Classic Investments Limited and Abu Dhabi Ports
    4. Terminal Investment Limited and REMGRO Limited

The preferred bidders for each terminal are expected to be appointed by February 2023.

22 August 2022

JSE Debt Sponsor
Absa Corporate and Investment Bank (a division of Absa Bank Limited)

Date: 22-08-2022 07:05:00
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