20-22 September 2010,Mombasa, Kenya

1. THE 1ST EASTERN AND SOUTHERN AFRICA PORTS ENVIRONMENTAL MANAGERS WORKING CONFERENCEPORT SUSTAINABILITY AND ENVIRONMENTAL CHALLENGES(A South African Perspective ) 20-22 September 2010,Mombasa, Kenya

2. CONTENT Background • Trends on sustainability and environmental challenges • Response from the port community Implementation • Strategic Environmental Assessment • Integration of sustainability issues into Port Planning • Port leadership role CONTENTS Conclusion • Environmental policy • Example addressing terminal & tenants • Guiding principles

3. Strategic issues :Practical Interpretation of Sustainability { } social economic environmental • Strategic development decisions that affect long-term environmental, economic and social performance and sustainability. • The integration of the environmental protection and sustainable principles into a port authority’s daily operation SOCIAL • Marine ecosystems • Marine archaeology • Shoreline stability • Accessibility of the port • Port-city land use planning • Socio-economics • Economic impact of port ECONOMIC ENVIRONMNET Achieving balance between “partnership” SUSTAINABLE DEVELOPEMENT

4. Challenges facing port development & sustainability Manage Cargo Traffic (Dealing with Uncertainty) Port Specific Drivers for Sustainability ( Cooperation & Partnership) Meet cargo demand (Leadership Innovation Approach) Need for growth – Dredging – Infrastructure development 􀂄 Increasing sophistication of key stakeholders 􀂄 Importance of generating & maintaining political good will 􀂄 Economics 􀂄 Politics and Regulation • Vessel traffic, ports expansion/ infrastructure • growth translates into: • – Air Quality Issues • – Water Quality Issues • – Invasive Species Issues • – Other Environmental • Management Issues • Port congestion Expanding and upgrading marine cargo handling facilities & infrastructure: –Adequate depth in navigation channel and berths to accommodate post-panamax vessels –Mix use port infrastructure –Other support infrastructure Meeting the needs of the present without compromising the ability of future generations to meet their own needs

5. CONTENT Background • Trends on sustainability and environmental challenges • Response from the port community Implementation • Strategic Environmental Assessment • Integration of sustainability issues into Port Planning • Port leadership role CONTENTS Conclusion • Environmental policy • Example addressing terminal & tenants • Guiding principles 4

6. South African Guidelines: “SEA is defined as a process of integrating the concept of sustainability into strategic decision making’’ South Africa has been highlighted as a leading developing country in terms of SEA and one of the few with a home grown approach The role of SEA, however, is to allow for the decision makers to proactively determine the most suitable development type for a particular area, before development proposals are formulated In the port sector Strategic Environmental Assessment (SEA) is to define the basic standard of good practice for the port sector

7. COMMON TRENDS IN SUSTAINABLE DEVELOPMENT What are the Solutions for Ports? What are the implementation Tools? What are Overall Drivers for Sustainability? • Environmental systems & Policies • Environmental Management Systems (ISO 14001) • Sustainability Policy and Program Development • Combination of the EMS and Sustainability • Legislation, Regulations, Conventions & protocols • Climate change project • Auditing • Performance measurement • Grow and expand in a sustainable way across • the board • Green and sustainable dredging practices • Carbon efficient marine cargo handling facilities • & infrastructure • Green and carbon efficient buildings • Sustainable methods to manage construction projects • Supporting mission of • Organization • Relationship with key stakeholders • Resource limitations and costs • Sustainability Principles • Scale of projects should minimize impacts • Local sourcing of products; reduce need for travel • Increase transparency for all impacts Requires a holistic and comprehensive approach towards economic development and environmental rehabilitation 6

8. Implementing an Environmental Management System Implementation Guidelines ENVIRONMENTAL Learning Points • Framework to promote • sustainable port development • Link to existing decision-making processes • Defining a vision • Supporting information systems • Sustainability Reporting • Baseline research • Considerations for port planning • Considerations for port operations and management • Environmental Monitoring • Stakeholder engagement • Sustainability reporting • Stakeholder engagement via: • Port-City Forum (ongoing) • Port-User Forum (ongoing) • Port-Stakeholder Forum (ad hoc as needed) • Internal stakeholders (within Transnet Group) It is an important response to the port sectors’ policy on self regulation and voluntary action in dealing with its environmental liabilities and responsibilities 7

9. PORT LEADERSHIP ROLE : Successfully Addressing Growth Challenges KEY ELEMENTS OF VALUE PROPOSITION BY AFRICAN PORT MANAGEMENT: Upgrading of Services, Operational Processes, and transparent port planning process Immediate Solution(s) • Stakeholders are becoming very sophisticated • b)Infrastructure capacity is a critical element in port development • c) Review of tenants’ agreements to include environmental issues • e)Ports helping ports philosophy • Integrate sustainability goals into growth plans • Maximize transparency during planning process • Recognize that public does not distinguish between impacts by Port Authority vs. tenants • Focus on what is doable within project constraints • New financial analysis tools • – Life-cycle analysis vs. capital construction costs • Understand and acknowledge sustainability drivers based upon appropriate scale • – Recognition of Regional Impacts • Joint audits across the South African ports

10. CONTENT Background • Trends on sustainability and environmental challenges • Response from the port community Implementation • Strategic Environmental Assessment • Integration of sustainability issues into Port Planning • Port leadership role CONTENTS Conclusion • Environmental policy • Example addressing terminal & tenants • Guiding principles 9

11. Environmental policy Environmental Policies require an integral strategy that includes: (a) balance between the needs of Ports and local communities; (b) environmental education; (c) co-operation at all level (governments, public and Ports); and (d) legislative and administrative changes to stimulate changes in environmental management. Immediate objectives • to reduce pollution and mitigate negative environmental and social impacts. • establish a number of relevant environmental indicators with targets to measure progress against • Water and energy conservation goals to minimise carbon footprint and manage costs • Water and air quality monitoring In the long run the ultimate desire is to achieve a situation whereby the ports operations become environmentally self servicing and responsible

12. Example Addressing Tenant Impacts SAFETY & SECURITY PORT OPERATIONS ENVIRONMENTAL • Ensure compliance with safety standards • Terminal operations safety • Vehicle driver safety • Ensure port security plans are in place & implemented • Enable migration into cleaner technologies • Move from road to rail -clean and energy efficient modes of transport • Dust mitigation in the dry bulk ports of Saldanha and PE • Environmental Management Systems (ISO 14001) • 􀂃 Sustainability Policy and Program Development • 􀂃 Combination of the EMS and Sustainability • Environmental risks assessment Efficient use of resources in terminals for effective corporate governance and management; greater attention to waste reduction, and increased productivity of assets 11

13. Conclusions • Sustainability pressures and drivers will continue to grow • – Will become standard business practice • Some port sustainability drivers pose unique challenges • Sustainability principles to be integrated into the port’s initial • phases of a planned 10-year capital improvement program • If properly addressed, sustainability enhances ability to • meet goals • Successful approaches require new types of analysis, • collaboration and communication Guiding Principles 12

14. THANK YOU