CONFIDENTIAL MONTHLY COMMERCIAL GM FORUM 14 May 2008

CONFIDENTIAL MONTHLY COMMERCIAL GM FORUM 14 May 2008 – DECISIONS AND NEXT STEPS

CONTENT Working Draft - Last Modified 19. 05. 2008 16: 31: 22 Overall summary Key slides for selected topics Printed 25. 04. 2008 13: 14: 52 1

RECAP ON DECISIONS AND IMMEDIATE NEXT STEPS (1 OF 5) Immediate action required Lead responsible Due date Project status reporting • Reviewing roadmap timelines for key initiatives and submission to Paulo • Submitting project weekly status update to Helgardt • All • Mo, 23. 05. • All • Every Friday • Ravi/Lauriette • Fr, 23. 05. • Karl • Mo, 19. 05. • All • Ongoing • Karl • Ongoing • Providing feedback on stock-take regarding current pricing practices, upcoming changes and glossary to Christina for consolidation • Updating pricing proposal after GM forum discussion • Detailing work plan and end products for internal use • Aligning proposal with key stakeholders (e. g. , Finance) • All GMs • We, 21. 05. • Ravi/Karl • Setting up meeting with PPRU to incorporate regulatory perspective • Lauriette (facilitation) • Fr, 23. 05. • End of May • Fr, 23. 05. Establishing GC Pricing • Creating greater awareness and buy-in for integrated commercial approach in ODs – Scheduling OD Exco presentations (TFR/TNPA/TRE/TPipeline) – Sending out draft of communiqué to broader commercial organisation to GMs for feedback • Testing drafted interaction routines for key commercial tasks for further update/review (incl. non-corporate account management routines) • Finalize job grading and advertise vacancies in GC Printed 25. 04. 2008 13: 14: 52 Action need Working Draft - Last Modified 19. 05. 2008 16: 31: 22 Area Source: Team analysis 2

RECAP ON DECISIONS AND IMMEDIATE NEXT STEPS (2 OF 5) Corporate account management • Corporate account development – Sharing TFR account plans of pilot accounts with Team Commercial – Nominating corporate account plan teams – Kicking off corporate account plan development • Setting up kick-off workshops with teams • Consolidating stock-take – Aligning on FY 08/09 priorities in priority corridors in TPT (email to be resent to Nosipho) • Corporate account reporting – Providing reporting contact list (numbers, account context) – Investigating cut-off dates for monthly reporting in ODs – Incorporating TNPA submission for April into Opco (if still possible) – Ensuring resource availability and priority for monthly reporting/account teams and timely data release at T -Pipeline – Updating reporting template (e. g. rationale, shadings, volume units) – Setting up team meeting with reporting team at Carlton – Sharing Op. Co submission deadlines with Team Commercial and reporting team Lead responsible Due date • Ravi • Mo, 19. 05. • All GMs • Paulo • Mo, 19. 05. • Fr, 23. 05. • Nosipho • Fr, 23. 05. • All GMs • Fr, 23. 05. • Karl • Fr, 16. 05 • Paulo • Fr, 30. 05. • Paulo • Fr. , 30. 05. • Paulo • We, 21. 05. Printed 25. 04. 2008 13: 14: 52 Action need Working Draft - Last Modified 19. 05. 2008 16: 31: 22 Area Immediate action required Source: Team analysis 3

RECAP ON DECISIONS AND IMMEDIATE NEXT STEPS (3 OF 5) Immediate action required Lead responsible Due date • Lauriette /Thokozani • July Contracting • Setting up workshop with Compliance (Indira) to identify relevant regulation • Addressing ‘quick-wins’ as soon as possible – Setting up meeting to prepare talent mapping session in June – Schedule talent mapping session around June GM Forum • Leslie • Ongoing • Fr, 23. 05. • Leslie • We, 21. 05. Branding/ advertising • Improving Transnet representation of large events as soon as possible – Follow up on first alignment meetings • Thoba • Ongoing • Thoba • We, 28. 05. Market Research • Addressing ‘quick wins’ as soon as possible – Consolidation of existing material – Publishing of material on Intranet • Nosipho • Ongoing Capability building Printed 25. 04. 2008 13: 14: 52 Action need Working Draft - Last Modified 19. 05. 2008 16: 31: 22 Area Source: Team analysis 4

RECAP ON DECISIONS AND IMMEDIATE NEXT STEPS (4 OF 5) Area Action need Lead responsible Due date • Preparing private sector participation framework – Investigation of current thinking and preparation of discussion – Sending out Board paper to Lauriette • Aligning on shared SPOs – Feedback on draft GM SPOs to Karl – Schedule meetings with GM, Karl and OD CEs to sign -off SPOs • Aligning with Cop. Cos/COOs on volume mapping to corridors – Providing total volume data on corridors to Volker for consolidation and subsequent discussion with ODs and corridors • Ensuring sufficient Team Commercial representation in corridor meetings – Continued participation in RB and Nat. Cor Cop. Cos – Setting up meetings with COOs and team of priority corridors without established Cop. Co • Rescheduling GM Forum in August • Developing 3 PL approach • Lauriette • Ongoing • Tue, 10. 06. • We, 21. 05. • Karl • All GMs • Ravi, Nosipho, Leslie, Lauriette Working Draft - Last Modified 19. 05. 2008 16: 31: 22 Other Immediate action required • Fr, 23. 05. • Tue, 10. 06. • Fr. , 30. 05. • Nosipho/Paulo • Paulo • Karl • Paulo Printed 25. 04. 2008 13: 14: 52 • Fr, 23. 05. • Ongoing • Tue, 10. 0. 6 • Fr. , 23. 05. • August GM Forum Source: Team analysis 5

RECAP ON DECISIONS AND IMMEDIATE NEXT STEPS (5 OF 5) Area Account review - MOL Account review - Toyota Lead responsible Due date • Resolving operational challenge, in Nat. Cor Cop. Co – Shunting constraints in Pretoria and ring-fencing of wagons – Contingency plan for Nat. Cor load shedding • Developing approach to ensuring communication of deal importance and operational requirements to shop floor and Cop. Co • Developing Maersk case study for internal use • Paulo • Ongoing • Ravi • We, 21. 05. • Nosipho • Tue, 10. 06. • Developing medium-term strategy to resolve profitability issues of MSC trains dedicated to BMW • Nosipho • Tue, 10. 06. • Developing approach to develop relationships with 3 PL providers and brokers • Improving relationships with customs and excise for transhipments business (especially Nqura) • Nosipho/Paulo • August GM Forum • Sharing TNPA proposal within GC • Ensuring adherence of single point of contact by Toyota • Responding to legal dispute on Cato Ridge project – Retrieving Toyota's letter to Chris – Inform Grindrod of decision • Lauriette • Nosipho/Karl • Mo, 19. 05. • Ongoing • Karl • Ravi • Fr, 16. 05. • Fr, 23. 05. • Karl Printed 25. 04. 2008 13: 14: 52 Account review - MSC Action need Working Draft - Last Modified 19. 05. 2008 16: 31: 22 Account review - Maersk Immediate action required Source: Team analysis 6

FIRST CUT AGENDA FOR 4 th GM FORUM – JUNE 10 th Timing Karl 09. 00 – 09. 30 • Project progress updates All 09. 30 – 10. 30 • Corporate account management – Detailed account review: Sasol, BP, Shell, Total Leslie 10. 30 – 12. 30 • Branding/Advertising – Transnet representation at large events Thoba 12. 30 – 13. 00 • Lunch - 13. 00 – 14. 00 • PSP participation Lauriette 14. 00 – 14. 30 • Any other business Karl 14. 30 – 15. 00 • Team Commercial introduction* Karl 15. 00 – 15. 30 • Guest speaker* Karl 15. 30 – 16. 30 *Broader commercial team to participate **Final version to be signed off by Karl Source: Team analysis Printed 25. 04. 2008 13: 14: 52 • Welcome: Recap from last meeting and today’s objectives Working Draft - Last Modified 19. 05. 2008 16: 31: 22 Lead Topic Prefinal document to be sent out 24 h before meeting** 7

CONTENT Working Draft - Last Modified 19. 05. 2008 16: 31: 22 Overall summary Key slides for selected topics Printed 25. 04. 2008 13: 14: 52 8

STATUS AND PROGRESS ALONG KEY TOPICS WILL BE TRACKED ON A WEEKLY BASIS Critical issues Action required to keep timeline Progress in line with timeline EXAMPLE Setting up organisation • Development of SPOs for Team Commercial • Job grading key positions within GC (business enabling, corporate account mgmt) • Sign-off of SPOs • Final approval and advertising of positions Corporate account management • Methodology for account plan development • Synthesis of commodity insights* • Outline of high-level interaction routines for non-corporate accounts • Piloting standard process for reporting • Complete staffing of corporate account teams • Ensure adherence to reporting process • Project proposal to Ex. Co • Detailed stock-taking of pricing processes • Dedication of pricing resources in GC and ODs • Alignment meeting with key stakeholders** Marketing • First alignment meetings on Transnet representation at large events held • Ensure adequate preparation and participation Contracting • Project proposal and set-up • Kick-off with attorney teams Pricing Source: Team analysis * Coal, iron ore, manganese ** e. g. , Finance Printed 25. 04. 2008 13: 14: 52 Critical next steps Status Working Draft - Last Modified 19. 05. 2008 16: 31: 22 Achievements by Team Commercial Action item • Kick off To be submitted collection of existing contracts each Friday 9

'ACCOUNT CHAMPIONS‘ SHOULD BE INVOLVED IN SUBMISSION OF OPCO REPORT WELL IN ADVANCE Working days before Op. Co meeting Responsible 10 2 3 4 5 6 Group Commercial (GC) 1 Sending reports to GC Non-GC involvement 2 Consolidation of report data 3 Clarification of account issues between ODs and GC Op. Co submission 3 4 Compilation of account snapshots and submission of reports to ACs 1 5 5 Review of document by ACs 6 6 Alignment and improvements of reports according to input of ACs Account champions (AC) 7 Final compilation of reports and submission of reports to Op. Co 8 Op. Co Printed 25. 04. 2008 13: 14: 52 ODs 7 0 Working Draft - Last Modified 19. 05. 2008 16: 31: 22 15 9 8 Compilation of Op. Co report 9 Op. Co meeting Source: Team 10

OVERVIEW ON VOLUME REPORTING Next steps PER CORPORATE ACCOUNT Corporate accounts STATUS AS OF 05/08/08 APRIL 2008 REPORTING Above budget No business with account ODs To be reviewed in detail today Below budget Matching of data to account currently under review Next steps Arcelor. Mittal • 10 E loco failures, Mittal cancelled trains • Kumba capacity increase Xstrata • Mines are underdelivering • Fix operational problems around coal line at TFR BHP Billiton • Mines are underdelivering • Fix operational problems around coal line at TFR Anglo • Capacity constraints at the rail/port interface Assmang • Slightly failing to achieve iron ore targets at • Operational improvements at the rail/port PPC • Alignment impact to build 200 wagons • Develop a customer relationship with PPC at TPT Sasol • Weekly customer demands exceeds TFR • Increase TFR capacity to meet weekly customer TPT TPipeline TNPA* TFR • Solutions for capacity constraints at the rail/port interface in PE Printed 25. 04. 2008 13: 14: 52 demand capacity • TFR above budget • Info sharing workshop on BP strategic plan and Total • Weekly customer demands exceeds TFR • Increase TFR capacity to meet weekly customer MSC • TFR captures only small fraction of volume • Increase TFR’s share of customer’s volume • Customer business relationship with TFR • Build up a direct customer relationship at TFR BP MOL capacity handled by TPT mostly via intermediary Maersk • TFR captures only small fraction of volume Shell • Main routes are not profitable Toyota • No formal agreement in place Source: TFR, TPT, TPipeline, TNPA handled by TPT * Preliminary data for TNPA Working Draft - Last Modified 19. 05. 2008 16: 31: 22 Rationale TFR Transnet capex plans demand handled at TPT with MOL • Increase TFR’s share of customer’s volume handled at TPT • Increase profitability of main routes • Establish a formal agreement with Toyota 11

PRELIMINARY DATA FOR TNPA REPORT FOR APRIL 08 MONTHLY REPORTING – MAERSK Key messages 1. Below budget Specific account challenges • Volumes and revenues exceed plan for both TFR and TPT • Good growth opportunity from rail superhighway project in Nat. Cor and other Above budget 2. 3. 4. 5. initiatives • Wagon turnarounds and delays have a negative business impact • Volume handled by TFR is less than 5% of volume handled by TPT • mthly meetings with customer, TFR and TPT in place Account KPIs (based on TFR, TPT and TNPA reports) Current performance Actual YTD Plans (full year)* Budget YTD 2007/08 YTD Key projects Rm • Containers revenue Total 142. 57 73. 05 877. 44 1 040. 60 12. 34 - 5. 93 - 142. 57 78. 99 877. 44 1 040. 60 Conversion from road-transport to rail superhighway project to triple Nat. Cor volumes June 2008 TFR/Bilqees Essa 2. PE ringfence initiative to ensure bi-directional traffic PE to Pretoria TBD Bilqees Essa Optimise berthing slots to improve profitability at TPT 2008/09 TPT/John Hyde 4. Optimised solution for empty containers and legs TBD Coastal CTOC pilot project TBD Sidney Bird/Bilqees Essa - 150. 01 • Other 136. 67 Owner 5. I. Revenues Deadline 3. 2012/13 II. Volume** TFR • Containers 62. 300 60. 350 38. 188 TBD 2008/09 negotiations Total 62. 300 60. 350 38. 188 TBD 1. Agreements in place • Main agreement ends 31 March 2009 (TFR). Price increases 6% on rail rates for 2008/09 TPT • Containers 1. 335. 988 1. 323. 375 Total 1. 335. 988 1. 323. 375 1. 268. 188 16. 661. 000 19. 759. 125 • Containers 954. 863 938. 175 TBD TBD Total 954. 863 938. 175 TBD key negotiation object. 1. 268. 188 16. 661. 000 19. 759. 125 TBD TNPA • Superhighway 2008/9 to 2010/11 (agreement with TFR and TPT). Customer has agreed on rates. SLA being amended for additional volumes (7500 TEU), implementation of SLA from 1 June in progress 2. Monthly meetings with TFR, TPT and customer *No applicable data available from TFR **1 t = 1 Volume; 1 TEU = 12. 5 Volume; 1 automotive = 1. 5 Volume; 1000 l = 1 Volume ***Besides the strategic commodities (Coal, iron ore, manganese, automotive, containers, liquid bulk) Source: TFR, TPT, TNPA, GC Alignment on standard volume reporting definition required 12 Printed 25. 04. 2008 13: 14: 52 Objective/impact 1. 2009/10 Working Draft - Last Modified 19. 05. 2008 16: 31: 22 Wagon supply, turnaround times and train delays hamper service delivery and potential to take advantage of export volume growth Restructuring within customer has resulted in negotiation difficulties Ensuring MAERSK’s understanding of the CT Operations Contract service offering Impact of CT terminal expansion project during process Empty rail top-up service not being fully utilised by customer

PRELIMINARY DATA FOR TNPA REPORT FOR APRIL 08 MONTHLY REPORTING – MSC Above budget Below budget Key messages Specific account challenges • Volumes and revenues exceeding plan despite underlying capacity and 1. Capacity challenges at CTCT during terminal expansion program, which may impact CT Operations Contract Profitability of BMW business being addressed by bi-directional cargos’ ex-customer Turnaround times on wagons in Gauteng impact BMW, also train cancellations during peak demand 2. 3. Working Draft - Last Modified 19. 05. 2008 16: 31: 22 profitability issues. TFR volumes only 10% of volume handled by TPT • Rail capacity/effectiveness and reliability of berthing slots schedule are threats to continued success • Terminal expansion program needs careful management during project Account KPIs (based on TFR and TPT reports) Current performance Actual YTD Plans (full year)* Budget YTD 07/08 YTD Key projects 2009/10 in Rm • Containers • Other 159. 8 0 131. 17 0 84. 83 0 687. 30 0 809. 90 0 9. 09 - 7. 75 - - 168. 89 131. 17 92. 58 687. 30 75. 500 0 94. 438 659 TBD TBD 112. 825 75. 500 95. 097 TBD TPT • Containers 1. 281. 950 1. 187. 500 1. 175. 750 13. 352. 263 15. 734. 188 Total 1. 281. 950 1. 187. 500 1. 175. 750 13. 352. 263 15. 734. 188 • Containers 1. 149. 400 895. 813 TBD TBD Total 1. 149. 400 895. 813 TBD TBD Owner 1. Optimisation of berthing slots and schedule 2008/09 TPT/John Hyde/BUE’s 2. Address BMW cargo contract/cost savings across ODs 2008/09 TFR Intermodal sector 3. Effective solution for empty wagons and the creation of a buffer close to port for flexibility of wagons turnarounds 2008/09 TFR operations/ TPT Sidney Bird/BUE’s 809. 90 112. 825 0 Deadline GFB*** • Other revenue Total II. Volume in Volume** TFR • Containers • Other GFB*** Total TNPA Printed 25. 04. 2008 13: 14: 52 Objective/impact I. Revenues 2008/09 negotiations 1. Contract expires March 2009. • Rates for 2008/09 have been accepted (TFR) • Negotiation objectives are to sustain and grow current volumes • Improve profitability and minimise discount for empty containers transported • Cape Cor Price increases to be negotiated by operations 2. Negotiations on transshipment complete, empty top has been implemented on 1 April during test at DCT (TPT) 3. Performance measurement implemented and SLA to be signed by end May 2008 *No applicable data available from TFR **1 t = 1 Volume; 1 TEU = 12. 5 Volume; 1 automotive = 1. 5 Volume; 1000 l = 1 Volume ***Besides the strategic commodities (Coal, iron ore, manganese, automotive, containers, liquid bulk) Source: TFR, TPT, GC 13

PRELIMINARY DATA FOR TNPA REPORT FOR APRIL 08 MONTHLY REPORTING – MOL Above budget Below budget Key messages Specific account challenges • Business with MOL ahead of plan. Opportunity appears to be for growth in rail 1. 2. 3. 4. Account KPIs (based on TFR and TPT reports) Current performance Actual YTD Budget YTD Plans (full year)* 07/08 YTD 2009/10 Service migrations from Durban Container Terminal to CTCT may negatively impact performance especially due to temporary capacity problems during CTCT terminal expansion project. NATCOR service top-up of empty rail capacity to be addressed Difficult to grow rail use beyond empty containers service due to intermediaries in the negotiation process (TFR) Backlog with customers and TPT on cars Working Draft - Last Modified 19. 05. 2008 16: 31: 22 volumes, through cooperation of TFR/TPT to improve empty containers’ uptake. • Additional growth may not be easy to achieve, given limited resources on customer side, along with the fact that the customer negotiates via intermediaries. Key projects 2012/13 in Rm 30. 97 0. 02 4. 57 23. 14 - 16. 07 0. 16 4. 29 211. 39 - 261. 44 - Total 35. 54 23. 14 20. 52 211. 39 • Containers 400 0 0 TBD TBD • Containers 369. 538 291. 350 297. 588 3. 660. 763 4. 527. 400 • Automotive Total TBD 369. 538 291. 350 TBD 297. 588 3. 660. 763 4. 527. 400 • Containers 139. 788 TBD TBD TBD TPT/John Hyde/ODs 2. Optimal solution design to address empty containers and growth of volumes for TFR 2008/09 TPT/Sidney Bird, TBD Total 2008/09 TBD 400 Improve berthing slots’ reliability 261. 44 Total Owner TBD revenue TFR Bilqees Essa II. Volume in Volume** TFR TPT 2008/09 negotiations 1. 2. 3. 4. Contract expires on 31 March 2009 (TFR) Grow volumes dramatically along with simultaneous rate increase Empty top-up service offering to be implemented April 08 at Pier 1 on trial basis Transshipment agreement is complete TNPA *No applicable data available from TFR **1 t = 1 Volume; 1 TEU = 12. 5 Volume; 1 automotive = 1. 5 Volume; 1000 l = 1 Volume ***Besides the strategic commodities (Coal, iron ore, manganese, automotive, containers, liquid bulk) Source: TFR, TPT, GC 14 Printed 25. 04. 2008 13: 14: 52 • Containers • Automotive • Other Deadline 1. I. Revenues Objective/impact

PRELIMINARY DATA FOR TNPA REPORT FOR APRIL 08 MONTHLY REPORTING – TOYOTA Key messages 1. 2. 3. Below budget Specific account challenges • Transport volume handled by TPT has almost doubled compared to last year, Above budget 4. Toyota wants to outsource specific services to rail; capacity for that is still limited Conversion of existing wagons to Toyota specifications and update of staging areas necessary An inland terminal will be developed at Isipingo that is in close proximity to the Toyota plant and vehicle distribution centre Upgrade of the Kaalfontein Rail facility is critical to the success of the automotive project Working Draft - Last Modified 19. 05. 2008 16: 31: 22 however volume transported by TFR is 50% below budget and even 20% less than last year. Reason is a bottleneck in suitable wagons on TFR site • Future projects’ focus on increasing market share on Point to Kaalfontein route for import units and Isipingo to Point route for export units • Contract (i. e. , amended Heads of Agreement (HOA) is envisaged to be signed by 16 May 2008 Account KPIs (based on TFR and TPT reports) Current performance Actual YTD Plans (full year)* Budget YTD 07/08 YTD 2009/10 Key projects Objective/impact I. Revenues Deadline Owner 1. 2012/13 Export shuttle service (Isipingo-Point) June 08 Transnet collaboration 2. Domestic service – Isipingo to Kaalfontein: Additional capacity creation at Isipingo. 31 July 2008 Transnet collaboration 3. Import service – Point to Kaalfontein: Increase market share 31 July 2008 Transnet collaboration in Rm • Automotive 21. 37 10. 38 100. 41 110. 40 3. 39 - 0. 60 - - 37. 33 21. 37 10. 98 100. 41 110. 40 7. 460 14. 648 9. 281 TBD TBD • Automotive 24. 483 24. 830 14. 688 345. 818 380. 243 Total 24. 483 24. 830 14. 688 345. 818 380. 243 • Automotive 27. 827 23. 604 TBD TBD Total 27. 827 23. 604 TBD TBD • Other revenue Total II. Volume in Volume** Printed 25. 04. 2008 13: 14: 52 33. 94 TFR • Automotive Total TPT 2008/09 negotiations 1. Contract under discussion for the new contracting period • Rates for 2008/09 agreed • HOA Contract will be signed by 16 May 2008 TNPA *No applicable data available from TFR **1 t = 1 Volume; 1 TEU = 12. 5 Volume; 1 automotive = 1. 5 Volume; 1000 l = 1 Volume ***Besides the strategic commodities (Coal, iron ore, manganese, automotive, containers, liquid bulk) Source: TFR, TPT, GC 15

SEGMENTATION OF CUSTOMERS IN FIVE GROUPS AND ROLE OF GC HAS BEEN DEFINED Non-strategic customers (smaller accounts) "Big@one" (e. g. , ESKOM) Nature of Transnet interaction • Intensive single • Intensive • Smaller account • Regular Role of Group Commercial • Provide support • Coordinate • Execute • Assist in • Support in crisis to ODs in dealing with major account issues OD customer relationship • Partner/compet itor relationship with other OD(s) across Transnet and provide integrated view to aid in building multi. OD customer relationships "Rising stars" (e. g. , UMK) "Business as usual" (e. g. , Harmony) multi-OD customer relationships integrated corporate account management with potential to become strategic customer (e. g. , through expansion plan) building deep strategic relationships • Ensure top management attention relationship with OD(s) management Source: Team analysis 16 Printed 25. 04. 2008 13: 14: 52 Customer group "Big & complex" (e. g. , Bidvest) OD customer relationship "Corporate Accounts" (e. g. , Anglo) Working Draft - Last Modified 19. 05. 2008 16: 31: 22 Strategic customers (large accounts) Already defined

INTERACTION ROUTINES FOR NONCORPORATE ACCOUNTS AGREED GC’s role along Account Management Process "Big@one" (e. g. , ESKOM) "Big & complex" (e. g. , Bidvest) Planning – Strategic execution Non-strategic customers (smaller accounts) Consulted Informed – – Informed – • Strategic crisis mgmt Consulted Informed IIb Day-to-day execution – – III Reviewing – – IV Relationship building Informed I IIa Source: Team analysis Consulted Routines already defined Printed 25. 04. 2008 13: 14: 52 "Rising stars" (e. g. , UMK) "Business as usual" (e. g. , Harmony) Customer group "Corporate Accounts" (e. g. , Anglo) Working Draft - Last Modified 19. 05. 2008 16: 31: 22 Strategic customers (large accounts) Informed – – Consulted – Routines detailed in updated Interaction Routine Manual 17