Procurement & Shipping

• Our jva partner will secure the availability of the required bulk petroleum products from the respective country’s of origin, as per the contracted volume requirements at the pre-designated storage terminals, as forecasted by Treasury Financial Holding services respectively
• Once all relevant paperwork and prerequisites are in place and in order, our jva partner will subsequently dispatch the loaded vessels
• Our jva partner will furnish us with the name of the vessel, flag, dwt, length overall, beam, draft and displacement, which will subsequently be sent 20 days in advance, to the respective storage terminals, in the respective country’s

• Treasury Financial Holding services will further provide the respective terminals, through the master of the vessel the estimated time of arrival in the discharge port 72, 48, 24 hours prior to vessel’s arrival estimated quantity to be discharged
• Laytime to commence six hours after tendering of notice of readiness (nor) or upon berthing whichever is earlier
• Notice of readiness shall be tendered any time between 06.00 hours and 18.00 hours, with or without free pratique having been granted, berth or no berth and laytime/demurrage shall commence there from. if vessel arrives after 18.00 hours nor shall be tendered the next day at 06.00 hours.
• However, if vessel arrives after 18.00 hours and port authorities are agreeable to have the vessel berthed immediately, nor can be tendered on berthing of the vessel. in the case vessel tenders nor before the agreed delivery range lay time to commence at either noon on the first day of the agreed delivery range or upon berthing whichever is earlier
• In the event that vessel arrives at disport within the agreed lay-time and due to berth being occupied by another tanker and thus nominated tanker, with her announced arrival draft which can be berthed safely at the next high tide after arrival, is obliged to wait on roads after the departure of the another tanker due to a decrease of the tide coefficient, all time lost as result of above shall count as used lay-time or demurrage, if time on demurrage and in this case all the demurrage cost will be paid by Treasury Financial Holding services
• In the event that the berthing or discharge is delayed or suspended by reason of bad weather conditions, all time lost shall count as used lay time or demurrage. in case of any such demurrage, all demurrage cost shall be for Treasury Financial Holding services account
• The quantity of products delivered by our jva partner, to the respective terminals, shall be based on the tanks measurements of calibrated meters available, and such quantity and the quality of products shall be confirmed by an independent inspector and the results will be final and binding on all parties

Piping

• Each port of delivery where Treasury Financial Holding services have a confirmed tsa in place or a prospective tsa in place, we would be making use of the respective pipeline network at the different ports of discharge, which subsequently all differ in tariffs, which are elaborated on the tsa drafts attached
• The pipelines in the respective ports of discharge are owned by different corporate bodies and each have their own set of rules and compliances to be adhered too
• Treasury Financial Holding services can confirm that we are compliant with all the corporate bodies rules and regulations, thus there will be no delays in discharging and piping the bulk petroleum products into the respective storage terminals
• Treasury Financial Holding services operations team will make that all discharge processes and
• Permissible monthly storage losses of client’s product, whether due to negligence by the respective terminal operators’ personnel or its contractors, or accidental leakage or to any other cause of any nature whatsoever, shall be as follows:
• Permissible losses in volume percentages are between 0,25% and 0,50% depending on the respective terminal where product is dispatched and piped into
• The terminal operators will be fully responsible for the quality of the products loaded out of storage for client’s account under the respective storage contracts and will be fully responsible for any contamination, loss or any other damage to the products whenever such contamination, loss or damage shall arise, for any reasons whatsoever, (i) while such products shall be in the care, custody or control of the respective terminal operators
• Should any losses exceed the above referred limits on any products, the excess losses shall be borne by the terminal operators for their own accounts and shall be subsequently reimbursed to Treasury Financial Holding services accordingly
• Until such moment when the product passes the permanent connection flange of the vessel, road truck or rail car at the time of loading for re-export and/or for domestic delivery at the said port; and/or (ii) whenever the respective terminal operators or its agents, servants, contractors or shall be directly or indirectly responsible for any such contamination, loss, or damage

Storage terminals

• Treasury Financial Holding services responsibility in the business partnership is to secure the bulk storage in the respective country’s where the vessels will be discharging
• Confirmed storage and throughput agreements in place are as follows:
  • msasa terminal in harare, zimbabwe (50,000 to 100,000 metric tons)
  • feruka terminal in mutare, zimbabwe (50,000 metric tons)
  • matola terminal in maputo, mozambique (up to 50,000 metric tons)
• Storage agreements in the application process are as follows:
  • richards bay terminal in kwa-zulu natal, south africa (46,000 metric tons)
  • vopak terminal in durban, south africa (up to 20,000 metric tons)
  • vopak lesedi terminal in heidelberg, south africa (up to 50,000 metric tons)

• Each storage terminal, in the respective country’s have different tariff rates and payment terms, which will subsequently be elaborated on the attached copies of the confirmed or prospective tank storage and throughput agreements
• All of the storage agreements in place or prospective, allow Treasury Financial Holding services to operate 100% independently, thus not having to conform with any oil majors pricing structures
• In other words, all of our clients will be uplifting the product from “unbranded” gantries operated by a corporate not an oil major and controlled by Treasury Financial Holding services only
• All product pumped into the respective installations of the contracted terminal operators will be re-loaded as per Treasury Financial Holding services requirements and delivered the same onto either our nominated vessel, road trucks or rail cars at the loading racks of the installations of said port
• Once the vessel has discharged all of the product into the storage terminals, Treasury Financial Holding services have 30 days to uplift the product, to make space for the subsequent vessel’s product and to avoid any unnecessary additional billings
• Treasury Financial Holding services will manage and oversee all storage and re-distribution responsibilities for the business partnership
• Full details of the storage and throughput agreements will be attached, detailing the summarised points mentioned on this slide

Re-distribution network

• Re-distribution of the products in the respective storage terminals, will predominantly be by road tanker, with the occasional rail cart method
• Each terminal operator in the respective country, will despatch the quantities of the products from our stocks by road and/or rail in
• Accordance with the directions provided in the terms of each respective storage and throughput agreement
• Treasury Financial Holding services clients will provide us with, at least a weekly upliftment schedule with a programme detailing product quantities to be loaded by road truck and/or by rail car, the relevant destination and consignees
• The respective terminal operators will load and despatch the scheduled quantities in compliance with such programme
• Treasury Financial Holding services ops team will manage and facilitate the daily re-distribution responsibilities in the partnership and provide
• Our jva partner with a detailed reconciliation of quantities uplifted, on a weekly basis
• Although all the storage terminal operators offer the same re-distribution services and methods, their operating hours, operating days in the week, number of gantries available to load from and average loading time per truck are different across the board
• Below is an example of matola terminals re-distribution specifics:
  • 10 – 20 gantries available for loading road tankers
  • loading time of 45 mins for a 40,000 litre tanker
  • hours worked per day are 7am to 4pm (9 hours), however extra hours may be worked if scheduled
  • all days are worked except sunday’s and holidays and on saturday a minimum of 15 trucks need to be scheduled for loading
  • based on the above calculation, conservatively i.e. 26 working days, no extra hours worked, estimating 8 hours and 15 minutes of loading time per gantry per day, 100,000 m³ plus can be loaded per month.
• A detailed breakdown of the calculation above, will be submitted for each of the storage terminals respectively

Pricing and Billing Structures

• Regardless of the terminal or respective country our customers are uplifting product from, the pricing and billing structures will be the same
• The difference at each port of delivery will only be to the bottom-line margin, as the storage and handling tariffs and local market fuel prices for the respective country differ considerably
• Additional factors that contribute to any variances of the bottom line are selling prices fluctuating from client to client, based on their total monthly volume commitment
• The payment method of the client can also affect the bottom-line margin, for example if a client pays via lc or bank guarantee, we will incur additional bank fees to process the respective guarantee, which would not be the case with a client paying by tt or eft
• A detailed financial analysis will be attached, highlighting the breakdown for each country we will be selling the bulk petroleum products in
• all financial responsibilities and duties in the partnership will be managed by tb&jb services and our jva partners respective finance teams
• the main contributing factor in maintaining high bottom line margins, is the consistent supply of well-priced bulk petroleum products