COMSEC – ‘Tonnage off Tar’ presentation

1. COMSEC – ‘Tonnage off Tar’ presentation 27 May 2009 Cape Town, South Africa

2. 209 Based on naturally competitive market for rail TONNAGE OFF TAR AIMS TO PROMOTE THE USE OF THE UNDER-UTILISED RAIL NETWORK AS A COMPETITIVE MODE OF TRANSPORT FOR EXPORT FRUIT Total fruit export volumes Volumes transported by rail Our past (up to 2007) Where we are now (2009) Our vision (2014 and beyond) Volume (kTEUs) 280* <2% 10% 35% • Newly integrated Transnet (rail and port) together with the FPEF and other members actively working together to develop rail solutions for the fruit industry and increase rail share to 10% of total fruit industry volumes • Top 5 Transnet initiatives monitored on a weekly basis • Operations team established to optimise current flows • Provide highly competitive services to the fruit industry and become the carrier of choice, with a capacity to serve 35% of the fruit industry volumes Strategic aims and objectives • No clear and focused strategic aims by Transnet to develop and promote the use of the rail network for the fruit industry (mainly as it was viewed as a non-rail friendly commodity due to seasonality fluctuations) “We are very excited by this opportunity and are very keen to work with you in delivering this goal for 2009, and then building from there into the future….Recognising improving the reliability and quality of the service we offer is essential to growing our container volumes, we have set up an Operations Improvement Programme”Karl Socikwa – Transnet Group Executive: Commercial * Assuming a 5% Year on Year growth rate for the fruit industry Source: Transnet

3. USING RAIL AS A MODE OF TRANSPORT HAS A NUMBER OF BENEFITS Quantitative benefits of rail Other benefits of rail • Reliability: Current service (2009) has already shown it can deliver all volumes on-time (100% stack adherence to date) • Road maintenance: Reduced wear and tear on roads, allowing government to spend less on road maintenance • Integration: Rail and port integrated under new Transnet model, thereby providing ease of flow of containers through the interface • Security: Increased security measures at Transnet with the use of gyrocopters, telemeters, third party security services and upgraded clamps on containers thereby reducing risk of hijacking and theft • Capacity: Maximum use of container space with high cube pallets easily fully loaded and powered (refrigerated) on a train vs. truck • Road and port congestion: Reduce congestion/traffic on road by reducing number of trucks by up to 38 per train -3% Transport cost to industry* Rm 1 890 1 861 1 770 -9% Potential spoilage cost savings** Rm -34% Carbon footprint*** Ktons of CO2 used 56 600 47 800 25 000 -19% Road journeys Number of road trips 107 800 99 000 71 500 Past (<2% volume railed) Current (10% volume railed) Future (35% volume railed) * Average rail price vs. road cost (Road cost calculated using Road Freight Association Cost Schedule Model April 2008, Edition 37) ** Assuming 80% of total fruit volumes are citrus, 17% grapes, 3% avocadoes and spoilage rate on rail (0.5%) compared to road (1%) *** Calculated using industry standard of rail CO2 generation rate of 0.000035kg/(kg*km) and road of 0.00029kg/(kg*km) Source: Transnet

4. NON-EXHAUSTIVE HOWEVER, IN ORDER TO MEET OUR VISION AND PROPOSITION TO THE INDUSTRY, WE WILL HAVE TO ADDRESS SEVERAL CHALLENGES Challenges Responsibility Commercial • Need commitment and support from fruit industry • Fruit exporters, Transnet • All parties along supply chain • All parties • ESKOM, Transnet • All parties along supply chain • Research institutions, Transnet and pack houses • Reduce delays along the supply chain (e.g. Loading at sidings, etc.) that can affect on time arrivals and hence stack date adherence • Improved communication and supply chain visibility • Prevent unplanned electricity outages which can cause delays of trains en route • Need for clearer communication by role-players along the supply chain • Rail is slower and less flexible than road (this gives less flexibility to pack houses) Operational • Provision of additional reefer train sets for fully refrigerated service • IT systems and integration • Build new terminal facilities in necessary areas such as Tzaneen to optimise handling of fruit volumes for rail • Expand rail network, which means building additional tracks if necessary to key farming/packing house areas to reduce overall supply chain cost and complexity • Some existing stations need to be upgraded as they might be potential bottlenecks to long-term growth (e.g., Pyramid South) • Transnet, Fruit exporters • All parties • Transnet, Fruit exporters • Transnet, Fruit exporters • Transnet Infra-structure Source: Transnet

5. ...AND WE HAVE RECEIVED EXCELLENT TESTIMONTIALS FROM OUR CLIENTS Cargo owners Clearing,forwarding Terminaloperators Road/rail haulers/brokers Shipping “ “Excellent job now we really are starting to talk performance” — Craig Maulson, GM of Rail and Port Supply Chain 24 March 2009 “ “We want to…record our appreciation to the Transnet operational staff for the superior service we are currently receiving…Transnet feedback is impeccable” — Marshall Ramjathan, Operations Manager, 6 April 2009 “ “Our experience with TFR…has been very pleasing… we value the co-creation process that our companies have embarked on in finding a sustainable solution to Sasol... requirements“ — Gerome Marrian, Supply Chain Manager, 6 April 2009 4 4 Source: Client testimonials