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ISSUE No. 45 | www.bus-ex.com

Torresol Energy:

THE HELIOSTAT FIELD A world leader in the Concentrated Solar Power (CSP) sector

JSPL Mozambique Minerais Limitada:

zicta:

metro de santiago:

Included The BE Mining Directory showcases leading mining organisations from across the world, ranging from big corporations to junior mines and their supply chains.

Be seen throughout our portfolio of magazines: •BE Mining Directory •BE Mining •BE Weekly •BE Monthly •

Go to page 60 to see this week’s listing To find out how to get involved contact: vincent@bus-ex.com

business excellence Design Matt Johnson Art Director mjohnson@bus-ex.com Louise Culling Production Designer lculling@bus-ex.com

business Richard Turner Director of sales rturner@bus-ex.com Vince Kielty Director of Editorial Research vkielty@bus-ex.com Sharon Rooke Administration & Operations srooke@bus-ex.com Matt Day Head of technology mday@bus-ex.com Andy Turner Chief Executive aturner@bus-ex.com

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editorial Martin Ashcroft Editor In Chief

Martin has edited business magazines for 15 years and has been editor-in-chief since Business Excellence began in 2006. mashcroft@bus-ex.com

Will Daynes Editor

Will has been a business writer for three years. He joined the Business Excellence team in September 2012. wdaynes@bus-ex.com

John O’Hanlon Editor

John has contributed to Business Excellence since its inception: he joined the in-house editorial team in February 2013. johanlon@bus-ex.com

CONTRIBUTORS Barbara Trautlein

A change leadership consultant, author, international speaker and researcher with more than 25 years’ experience with organizations to lead change that sticks.

Rickard Alfredéen

Rickard is founder of Oneforce, a management consulting firm focusing on commercial excellence and performance improvement.

Dr. Jack C. Chow

Dr. Jack C. Chow is a 2013 Harvard Advanced Leadership Fellow and a Distinguished Service Professor at Carnegie Mellon University.

The content of this magazine is copyright of Infinity Business Media Ltd. Redistribution or reproduction of any content is prohibited. © Copyright 2013 Infinity Business Media Ltd.

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issue No.45 6 Comment: Change management

The challenge of change

10

If you’re struggling to transform your business to survive and thrive, here are five tips on leading change in challenging times.

10 strategy

The art and science of pricing

Practical, structured ways to increase profitability by pressing the right pricing levers.

28

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16 Torresol Energy, Gemasolar THE HELIOSTAT FIELD

Torresol Energy was established with the aim of becoming a world leader in the Concentrated Solar Power (CSP) sector.

28 Metro de Santiago Serving Santiago

CEO Roberto Bianchi talks about the extensive expansion programme being undertaken to improve the infrastructure of South America’s largest subway system.

16 4 | be weekly

contents

38 38 JSPL Mozambique Minerais Limitada Powering the future

Mozambique is fast becoming one of the most important places on earth for mining. Discover JSPL Mozambique’s commitment to the growth of this sleeping African giant.

46 Franchise Association of South Africa Perfect timing

46

The franchise industry is booming in South Africa, thanks to changing consumer spending habits, an increase in innovation and a willingness to explore new ways of working.

52 ZICTA

Changing for the better Director General of ZICTA, Margaret K Chalwe-Mudenda discusses the role the Authority has played during this exciting period of change.

BE Directory

52

60 CAE Mining

Training the next generation

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The challenge of change by: Barbara Trautlein

comment: Change management

P

utting the right people at the helm has launched many high-profile, highly successful turnarounds, from Jack Welch in his early days at GE to Meg Whitman at eBay. But companies don’t have to fire the entire C-suite to put “new” leadership in place, says Barbara Trautlein, author of Change Intelligence: Use the Power of CQ to Lead Change that Sticks. “Leadership is the key to successful major organizational change, which has had a failure rate of 70 percent for decades,” she says. “It IS possible to lead successful and sustainable change, IF it’s led effectively.

The problem has been that, so often, it’s not.”

Work for c e s in every industry – from manufacturing to service to healthcare to high tech – are confused and bruised, she says. Employees in this economy thirst for guidance but are distrustful and disenfranchised, not engaged, empowered, or equipped to do what is needed to help their organizations transform to survive and thrive.

The solution? Those who

lead change must first change themselves. Trautlein shares five simple but effective ways to accomplish that: Change your story R e f r a me r e s i s t a nc e .

Resistance in organizations is like the immune system in the body; it protects against harmful invaders from the outside. Just like pain in the body is a symptom something is wrong, so resistance is a sign to which managers should pay attention. The goal is not to eradicate it, but to allow it to surface, so it can be explored and honoured. To lead more effectively, learn to see resistance as your ally, not your enemy.

Change your stance Picture a triangle. So often, we view ourselves on one angle, others at another angle, and “the problem” on the third angle. In our minds, it feels like it’s us against the other people as well as the problem. That’s exhausting.

Instead, re-envision yourself and the other people working together to solve the problem.

Move from being and feeling and acting against others, or doing something to others,

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We’re always looking for industry experts with an opinion.

Get in touch to share your thoughts with us...

editorial@bus-ex.com

comment: Change management or even in spite of others, to working with and even for them. If you can make this simple mindset shift, how you relate to others will almost immediately become palpably partnership-oriented to them.

Change your seat What you see depends on where you sit. Change looks very different at different levels of the organizational hierarchy. Those at the top are typically isolated.

Those at the bottom are most resistant. Those in the middle are squeezed. Sit in others’ seats and appreciate their pressures. Adapt your approach and messages to the very different needs and concerns of these very different audiences.

Change your style We all know the Golden Rule: Do unto others as you would wish them to do unto you.

To lead change effectively, follow the Platinum Rule: Do unto others as THEY wish to be done unto. Tell stories they can relate to. Share statistics relevant to them.

Demonstrate what’s in it for all of us to work together in new ways.

Change your strategy So often, what looks like resistance is really that people don’t get it, don’t want it, or they are unable to do it. Engage the brain by explaining the “why” and “what” of the change – help the “head” understand your

vision, mission, and goals.

Paint a clear picture of the target and the end game.

Inspire the “heart” to care about the change objectives by engaging with others, actively listening, dealing with fears and insecurities, and building trust. Help the “hands” apply the change – provide tactics, training and tools, and eliminate barriers standing in people’s way.

The good news: None of these prescriptions require leaders to change who they are. “They are all about shifts in mindsets and behaviours.

It’s about the flexibility to adapt our leadership approach to get us all where we need to go,” Trautlein says.

It’s amazing how when we change, others change. “It’s been said before – because it’s true: Be the change you wish to see in the world.

That’s leadership.”

Barbara Trautlein is a change leadership consultant, author, international speaker and researcher with more than 25 years’ experience partnering with organizations to lead change that sticks. She helps all levels of leaders in achieving their personal and professional goals in industries ranging from steel mills to sales teams, refineries to retail, and healthcare to high tech. www.changecatalysts.com

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The ar science o

Practical, structured way by pressing the ri

written by: Rickard Alfr 10 | Be weekly

strategy

rt and of pricing

ys to increase profitability ight pricing levers

redĂŠen and Jack C. Chow Be weekly | 11

P

ricing is often overlooked as a strategic lever essential for revenue and profits. The global economic slowdown has heightened consumer sensitivities to pricing and value, however, prompting a resurgence of interest in integrated pricing policies and strategies.

Managers often neglect the pricing lever because of the unrelenting demands of running their businesses.

W hen pr icing policies do come under review, managers may encounter difficult y in mastering t he complex inter play among key variables such as customers’ perception of v a lue a nd t he i r differentiated needs across core segments. Resulting pr ic i ng p ol ic ie s m ay become too rudimentary,

a nd lead to revenue leakage, eroded margins, and lost market share.

In the place of cursory or uninformed pricing moves, there are practical, structured ways companies can exercise the pricing lever to rapidly enhance profits.

Pricing is much more than price Pricing involves much more than just raising or lowering the price. It requires a strategic context in which pricing choices are structured within a system of policies, processes, communications, and incentives. Paramount is having clear pricing decision rights within the organization.

One illustrative example is one client’s experience with uncoordinated discounting.

When a firm embarks on a discounting strategy, policies

“When a firm embarks on a discounting strategy, policies and processes are needed to prevent price erosion” 12 | Be weekly

$ $

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strategy

“analyses revealed that, the company was committing frequent overlapping, and highly variable, discounting” and processes are needed to prevent price erosion – loss of revenue through unnecessary discounting - and to avoid unanticipated costs such as personnel overtime and premium freight.

This company had a discounting structure with four types of discounts: 1) specific customer discounts (that only certain large key customers were entitled to), 2) volume discounts (based on order value), 3) promotional discounts, and 4) field sales discounts (that sales representatives could negotiate on an orderby-order basis).

At the project start, the client’s top management claimed that their discounting was already coordinated in such a way that excessive discounting was not occurring. However, price leakage analysis (also called

net sales waterfall analysis) combined with different types of discount variability analyses revealed that, in fact, the company was committing frequently overlapping, and even highly variable, discounting. Customers sometimes received more price reductions than the client intended. As a result, the company was losing money on many of its largest customers and on many of its largest product lines.

With data, it was shown that uncoordinated discounting explained more than half the profitability problems the company was facing.

In this case, the company needed to reform pricing policies and establish clear discounting processes and decision rights to avoid price erosion. This compellingly shows that pricing is not only about setting the right

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“Pricing is not only about setting the right price level, but creating a well understood pricing architecture that managers can implement with clarity” price level, but creating a well understood pricing architecture that managers can implement with clarity.

What is valuebased pricing?

A foundation to an effective pricing architecture, and understanding what price customers are willing to pay, is knowing your customers’ perception of value towards your firm’s products and/ or services and towards the offerings of your competitors.

The perception of value may include product attributes such as functionality, longevity, and even social status from owning the product. The car industry is a classical example in which makers intensively set prices to meet and shape their target customers’ value perceptions and expectations.

The essence of value-based

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pricing is to identify the right prices of the product lines or service lines for different tiers and even sub-segments of customers with consistent value perceptions. While seemingly a straightforward task, understanding a product’s worth to a customer is a considerable challenge in many organizations, especially given the variability of value perceptions across segments.

First, a company must find a way to segment its customers in a meaningful way.

Appropriate segmentation meets a number of criteria.

Each segment must represent distinctly different customer behavior or needs. Segments must be easily measurable, such as an absolute number or a percent of the market.

Segments should be defined as to make a pricing action clearly actionable, e.g. it

should be possible to reach each segment through different marketing and other efforts. And, segments must be substantial, i.e. each one is sufficiently large enough to provide an economic value to the company.

Effective pricing requires a thorough understanding of customers’ needs and of a product’s “worth factor” across the defined customer segments. A product’s true worth, which is a metric contributing to a company’s profit – is what the customers think the product is worth and what they are willing to pay. Product components that create worth to customers’ eyes and minds can be very different across industries and customer segments but commonly include reliability, delivery speed, brand name, auxiliary services, impact on customers’ productivity,

strategy energy efficiency, social status, and cost savings, among many others. For one client, a customer segment in one country placed energy efficiency, environmental friendliness and reliability at the top of their worthiness scale. Yet the same customer segment in a different country placed very small values on these factors and instead considered price to be their most important worth factor and consigned environmentally friendliness to the bottom.

Without a firm-wide approach, the notion of ‘worth’ often creates controversy within organizations. Sales, marketing and production frequently have ver y different views of what ‘worth’ really means. To harmonize how this worth factor is determined within a company, structured in-depth customer interviews can

help managers understand how value is established by products, how they are presented to customers, and how customers react to the value proposition offered by the firm’s products and by competitors and substitutes.

Pricing diagnostic To establish a pricing architecture, a company can conduct a pricing diagnostic to understand how specific offerings are priced and compared to their full

Rickard Alfredéen is founder of Oneforce, a management consulting firm focusing on commercial excellence and performance improvement. Previously he worked at Booz & Company and Bain & Company in Europe and the US. Dr. Jack C. Chow is a 2013 Harvard Advanced Leadership Fellow and a

potential for profitability. A pricing diagnostic project entails conducting a series of standard pricing analyses based on internal data and customer interviews, then triangulating them to derive new patterns and insights. Example analyses include price sensitivities, discounting variability across customers and products, and price leakage, among many others. These diagnostic analyses along with the understanding of customers’ perceived value of product offerings help to intelligently set appropriate price levels across product lines and within core customer segments. With the diagnostic fact-base, it becomes a logical and straight-forward task to adjust prices and develop an effective pricing system that addresses pricing policies, decision rights, and value communication.

Distinguished Service Professor at Carnegie Mellon University. He was a consultant at McKinsey & Company and a founding partner of CRV Capital LLC, an investment entity.

He also served as US ambassador on global health issues for then Secretary of State Colin Powell.

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THE HELIOSTAT

Torresol Energy was established with the aim of becomin in the Concentrated Solar Power (CSP) sector and its mi the technological development of large CSP plants aroun

written by: john O’Hanlon research by: Louisa Adcock

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Torresol Energy - Gemasolar

T FIELD

ng a world leader ission is to promote nd the world

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The tower reflection on a heliostat

Torresol Energy - Gemasolar

S

olar power is a great idea, but it is no good at night or when the sun does not shine – right?

Wrong! In southern Spain there’s now a solar power plant that can run constantly. We are used to seeing solar panels on houses and in solar arrays.

These work by converting sunlight directly into electricity using photoelectric cells, but Torresol Energy was formed to introduce and test new technologies that make concentrated solar energy an economically competitive option and a real, viable, ecological and sustainable alternative to traditional energy sources. Conserving the environment for future generations is one of Torresol Energy’s main commitments.

Gemasolar is an innovative 19.9 MW CSP plant, the first commercial experience in the world using molten salt thermal storage in a central tower configuration. The plant is located in Fuentes de Andalucía, Seville, and started commercial operations in May 2011.

The plant consists of a 140 metre high solar power tower that derives its energy from an array of 2,650 heliostats, or mirrors circled around it, reflecting the sun’s rays onto the molten salt core.

Spain has acquired global technology leadership in the field of solar energy over the last few decades. The work of SENER, which owns 60 percent of Torresol Energy, started in the 1980s. The firm focused on finding technology for large scale cost-efficient innovations for power generation, and by 2005 it was ready to undertake the design, manufacturing, installation, testing and validation of a CSP receiver prototype in collaboration with the

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TORRESOL ENERGY Torresol Energy - Gemasolar Torresol Energy feature government research and Lorem ipsum dolor sit amet, text....Lorem ipsum dolor sit consectetur adipisicing elit, innovation organisation amet, consectetur adipisicing CIEMAT. At the same time it sed do eiusmod tempor elit, sed on do the eiusmod incididunt ut labore et dolore worked designtempor of the incididunt ut labore et magna aliqua. Ut enim ad 120 square metre heliostats, minim veniam, quis nostrud doloreorientation magna aliqua.

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TECNICAS DEL CABLE S.A. Técnicas del Cable are experts in the production of specialized cable for specific markets including the chemical industry, refineries, the Aeolian parks, power stations and railroad networks. Today we are capable of making practically every form of cable and can do so based around the specifications given to us by our clients or by following national and international norms. Thanks to the incorporation of new machine and the development of new products, Técnicas del Cable can respond to almost any request from its clients. Employing more than 40 people at its 25,000m2 facility, Técnicas del Cable is capable of providing services to the whole of the European Union.

While it has a particularly strong presence in Portugal, France, Italy and Belgium, almost 70 percent of its total output is installed and sold

in Spain through a team of installers, engineers and mounters who are experts in the electrical sector. The company’s philosophy is based on offering its clients the perfect conjugation of quality, downtime and price. In 1989, the company obtained ISO quality certification and ever since it has managed to fulfill its three core objectives, while remaining on a path of continuous improvement throughout all areas of the business. Looking to the future the company aims to maintain its strategy of investment in equipment and technology. In the short-term it will also continue to renovate its operations, incorporating new production lines as it looks to offer a greater range of products.

E. info@tecnicable.com www.tecnicable.com

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19.9 mw Capacity of the power plant

Tower and heliostats

22 | be weekly

year of operation exceeded all expectations.

It supplied more than 100 GWh of power provided to the grid.

So what are the advantages of this unique plant, the first CSP unit in the world to include a molten salt thermal storage system? “Apart from opening the way to a new generation of solar power technology,” says Álvaro Lorente, General Manager of Torresol Energy. “The most obvious advantage is that it supplies continuous power in a flexible way. That is to say, the turbine can operate without stopping overnight or if there is a cloud. That prolongs the life of the turbine, and in addition we can manage its output according to demand according to peaks and troughs.”

There are a host of other advantages, he enthuses. “Its very simplicity makes it a low risk operation. The fluid is concentrated in a small area, reducing thermal loss and keeping maintenance costs low, and the same fluid is used for both heat transfer and storage, resulting in less thermal exchange.

Additionally the molten salts reach extremely high temperatures, which maximises thermodynamic efficiency.” Gemasolar’s 19.9 MW turbine is a strategically capable installation, he says, able to supply electricity to 27,500 households. “Eventually the plant

Torresol Energy - Gemasolar

The plant has the ability to provide a higher annual capacity factor than most baseload plants such as nuclear power plants

will be able to supply 24 hours of uninterrupted production per day on most summer days, providing a higher annual capacity factor than most baseload plants such as nuclear power plants. In this way, the reliability of solar energy becomes comparable to that of conventional fossil-fuel power plants, a decisive factor as the demand for renewable energy increases.”

However another vital element for the Torresol partners is the amount of local input they have been able to achieve, says

Lorente. “Since the company was created in 2008 we’ve had a solid commitment to creating a network of local and national suppliers in order to generate wealth around the facilities. In all the installations we have done we have boosted local employment, with about 80 percent of supplies and 70 percent of the talent coming from local sources.”

As befits an alternative energy enterprise, both Gemasolar and Torresol O&M were recently awarded ISO 14001 certification for environmental management and OHSAS

“Eventually the plant will be able to supply 24 hours of uninterrupted production per day on most summer days” be weekly | 23

IMECA Solutions and Services offers itself as the best

Phone: +34 949 208 917 | Fax : + 34 949 208 919 e-mail: imeca@imeca.net ISO 9001 & 14001

solution, in quality and commitment, to perform all services available for the energy industry.

We are specialists in the renewable energy sector for the design and manufacture of fasteners and anchor bolts, both conventional and for metal structures.

We provide our expertise to the energy industry (wind, solar thermal, photovoltaic, combined cycle ...), as well as to the railway, marine and petrochemical industries.

IMECA Solutions and Services offers: • Anchor bolts.

• Plates, nuts and washers.

• Screws: conventional, special and for metal frames.

• Special parts manufactured off-plan.

Torresol Energy - Gemasolar 18001 certification for EMbaffle B.V. workplace health and safety.

EMbaffle B.V. is a dynamic technology company with Masdar is keen to be able broad operational knowledge across the Solar Power, to bring these principles as Oil & Gas Up- and Downstream and Petrochemical well as the technologies to the industries. We offer advanced heat transfer solutions Middle East. North Africa has based on our proprietary technology supported by sound plenty of sun, so has Chile for operational data. Our solutions provide significant added value to projects including capital and operating example. However with the cost enhancement as well as reductions in energy former being a desert and the consumption and CO2 emissions. latter subject to earthquakes, In the Concentrated Solar Power sector our technology has the technology will need proven itself as for the last seven CSP projects in Spain to be refined to suit local equipped with Thermal Storage possibilities all clients have conditions. Torresol Energy is chosen for EMbaffle Technology. studying weather conditions A Major Advance in Heat Transfer Technology. www.embaffle.com and working with a number of governments and entities around the world to increase its understanding of how local content, local talent and local supply chains can be optimised to bring the benefits of solar power where it is most needed.

Solar thermal technology is a relatively new industry, hungry for investment at this early stage of development, says Álvaro Lorente, but with the ability to cut unit costs to a fraction of current levels as it supplants fossil fuels. Cost reduction can be achieved using different ‘levers’, he explains.

“We can utilise R&D to gain economies of scale, for example constructing larger plants Heliostat field at dusk

“As the industry matures a supplier base will grow up and standardisation of components will cut costs further” be weekly | 25

A heliostat rotates to capture the sun’s rays

Torresol Energy - Gemasolar

80% Local supplier content at Gemasolar and developing the specific learning curve from each solar thermal technology. As the industry matures a supplier base will grow up and standardisation of components will cut costs further. At Torresol Energy we have a solar development programme: a number of central complexes will be built simultaneously with the twin objectives of creating a supplier industry and improving plant efficiency.�

Really, research is the key. Torresol Energy’s current projects include; cloud location in collaboration with the University of Almeria; prediction of solar radiation in partnership with the Spanish Centre for Renewable Energies CENER; product development to improve reflectivity levels on the heliostat field, with Tekniker; and software optimisation to improve plant efficiency. A parabolic trough plant operation simulator will help training of operators on sites that use that technology, while mathematical models are being developed to accurately predict wind conditions. All these share the twin objectives of production growth and cost reduction in operation and maintenance.

For more information about Torresol Energy - Gemasolar visit: www.torresolenergy.com

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Metro de Santiago

Serving Santiago CEO Roberto Bianchi talks about the extensive expansion programme being undertaken to improve the infrastructure of what is South America’s largest subway system

written by: Will Daynes research by: Louisa Adcock

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Aerial view of the Metro line runing through Santiago

Metro de Santiago

F

ounded in 1542, Santiago has been the capital city of Chile since colonial times. Located within the country’s central valley, its cityscape is shaped by several stand-alone hills and the Mapocho River. Situated mere hours away from both the mountains and the Pacific Ocean, visitors to Santiago are also treated to views of the iconic Andes Mountains from most places across the city.

In recent decades Santiago’s steady economic growth has helped transform it into something of a modern metropolis, home to extensive suburban development schemes and a rising skyline that includes the tallest building in Latin America, the Gran Torre Santiago. The city has also developed a modern transportation infrastructure which includes the Metro de Santiago, South America’s most extensive subway system.

“It was on 24 October, 1968,” explains Roberto Bianchi, CEO of Metro de Santiago, “that the then President of the Republic, Frei Montalva, signed the decree that resulted in the birth of the Santiago Metro. Just over seven months later, on 29 May, 1969, work commenced on the first stretch of Line 1, between the San Pablo and La Moneda stations. The first journey carrying passengers would take place on 15 September, 1975.”

Today the network boasts 108 stations, which cover five lines, four maintenance garages and a corporate office, from which its control centre monitors the whole operation.

As of December 2011, the company employed more than 3,200 people in various positions throughout the operation.

“Today,” Bianchi continues, “we are

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THALES Thales is a global technology leader for the defence & security and the aerospace & transport markets. In 2011, the company generated revenues of €13 billion with 67,000 employees in 56 countries. With its 22,500 engineers and researchers, Thales has a unique capability to design, develop and deploy equipment, systems and services that meet the most complex security requirements. Thales has an exceptional international footprint, with operations around the world working with customers as local partners. Thales is a world leading supplier of cutting-edge railway signalling solutions for main line and urban rail which guarantee the safe, reliable and convenient transport of passengers and freight.

Thales has widespread international experience in all aspects of control and safety technology, network integration and corresponding

services concerning technical operations and maintenance. The product portfolio includes, among others, the following solutions: • AlTrac for interoperable train control also comprising ETCS solutions (European Train Control System), • LockTrac for train routing, also including the leading electronic interlockings from Thales together with field equipment and • NetTrac for network management, disposition and control.

Thales provides turnkey solutions that increase performance and line capacity while reducing operating, maintenance and infrastructure costs. Thales’ goal is to be its customers’ long-term partner to help them address major challenges for continual growth. www.thalesgroup.com

beBEweekly WEEKLY| |332

in operation, they will half the travel time for residents living in the northwest and southwest of the city, travelling to the centre.

This way, the arrival of the Metro could even bring new job opportunities to parts of the city which were previously considered too far away and difficult to access.

“Furthermore” Bianchi says,” our new passengers will be able to access the many services available in the Metro stations. They may, for example, run errands or shop without deviating from the route home, or enjoy the varied musical and artistic events organised by the Corporación Cultural MetroArte (MetroArt Cultural Corporation). We are talking about a Metro which thinks of the people, which incorporates the best underground trains in the world and the most advanced technology.”

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Metro de Santiago

Metro de Santiago prides itself in maintaining the highest standards

Once complete, Lines 3 and 6 will feature some of the most important and advanced innovations on the whole network, from modern platform doors and tracks that eliminate the risk of electrocution, to trains with more security cameras and more efficient driving. Line 6 is expected to commence operation in 2016, with Line 3 to follow in 2018. Total investment has been calculated as being approximately $2.75 million.

The on-going work taking place across the network reaffirms the fact that one of Metro de Santiago’s core initiatives is to reinforce its commitment to its users. One such action it is taking is the implementation of a service strategy called Pasión por el cliente” (Passion for the customer).

“We are already developing a series of measures to keep our passengers informed before and during journeys,” Bianchi enthuses.

“The on-going work taking place across the network reaffirms one of Metro de Santiago’s core initiatives is its commitment to its users” be weekly | 35

“Through the use of social networks like Twitter we have implemented an information system, which, as well as delivering current reports regarding the state of operation, allows us to respond to each and every one of the enquiries we receive from our customers.

In the near future we will also implement an information system via text message for cell phones and a special app for smartphones.

In addition to this, in April last year the

company created a free phone number (1411), which allows its passengers to make a complaint in the event that they are presented with a situation that involves some kind of risk to health.

“We want to continue being the safest public place in Santiago, with 0.37 crimes reported for every million passengers,” Bianchi says.

On top of the improvements described above, the Metro is also working to establish is Communications Based Train Control (CBTC)

“The metro is already regarded as an efficient, non-polluting mode of transportation, with very low greenhouse gas emissions”

Metro de Santiago implements initiatives to lower its carbon footprint

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Metro de Santiago

Underground entrance

conduction system. This system will begin operating during 2013 and its introduction will coincide with the arrival of 14 new trains.

While the Metro is already regarded as an efficient, non-polluting mode of transportation, with very low greenhouse gas emissions, it remains aware of the responsibility it has to implement new initiatives that will lower its carbon footprint further still. In 2011 the Metro achieved a saving of roughly 63 Gigawatt hours per year, equivalent to the average annual consumption of 35,900 households. During the early months of 2012, Metro reduced its consumption reaching a rate of 2.93 kilowatthours used per month, in comparison with 2.98 in the previous period.

“Together with the growth of the Metro

network,” Bianchi continues, “the company promotes non-tariff businesses, the lease of real estate space and the sale of advertising space, aspects which have contributed to the Metro being one of the few self-financed subways in the world. For the local economy meanwhile, the Metro represents not only the generation of jobs, and payment of wages and taxes, but an important support for local companies through their incorporation into our supply chain. These are all things that we hope to continue to contribute towards as we expand the network further in the months and years to come.”

For more information about Metro de Santiago visit: www.metrosantiago.cl

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Powering the future

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JSPL Mozambique Minerais Limitada

Mozambique is fast becoming one of the most important places on earth for mining. Vice President and Country Head, Manoj Gupta, discusses JSPL Mozambique’s commitment to the growth of this sleeping African giant

written by: Will Daynes research by: Abi Abagun

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JSPL Mozambique Minerais Limitada

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ocated on the southeast coast of Africa, Mozambique is the world’s 35th largest country and has become recognised as a favourite hot spot for countless mining companies, particularly those interested in coal. With coal found in the country having garnered a reputation for its purity, Mozambique has earned the moniker of being the “natatorium of coal mines”.

With an estimated 2.4 billion tonnes of coal reserves though to exist within the Tete province alone, it comes as little surprise that coal mining exploration today represents a cornerstone industry of the country and a major contributor to its economy. It should also then be of little surprise that Mozambique continues to attract the attention of major multinational businesses and companies, keen to establish a presence within its borders.

One such business is Jindal Steel and Power (JSPL), a leading player in the steel, power, mining, coal to liquid, oil and gas, and infrastructure sectors with an annual turnover of approximately $15 billion. It was in 2008 that the company incorporated and registered JSPL Mozambique, before commencing with mining prospection in the final quarter of that year at its concession area in Chirodzi of the Cahora Bassa district.

“JSPL’s primary reason for coming to Mozambique,” explains Vice President and Country Head, Manoj Gupta, “is to support Jindal’s steel plant operations in central India through the export of coal, one of the main raw material ingredients required during the steel production process. Having established a footprint with the country we wasted no

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time in setting up exploration programmes and testing coal material in our laboratories, bringing us to the point where today we are ready to export our first shipment of coal.”

With first coal ready to be moved from JSPL Mozambique’s mine site, the company is now in a position where it can begin acquiring a rolling stock of vehicles that can transport the product to Mozambique’s port facilities.

Despite the considerable progress the company has made, challenges do still present themselves, particularly the logistical issues caused by a lack of crucial infrastructure within the country. For its part the Mozambique government is making serious strides to remedy such issues by pushing forward various large-scale projects that include creating increased port capabilities

JSPL Mozambique Minerais Limitada

JSPL are now ready to export coal shipments

and a new railway line linking the core mining areas to the coast.

“JSPL views its operation in Mozambique as being part of a long-term commitment to the country,” Gupta enthuses. “It is for that reason that we have repeatedly stressed our support for the government’s plans for the country and we stand ready to help in any way we can, be it as a partner, financial or a user. Our Chairman, Mr Naveen Jindal, has held discussions with

the government of Mozambique, and we have decided to expand our search into good quality iron ore. If we can find this iron ore then we would be very interested in setting up a steel plant as well in Mozambique” As part of its commitment to the country, JSPL also aims to play a pivotal role in Mozambique by contributing not only to its economy, but also by uplifting the lives of the communities around which it operates.

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One of JSPL Mozambique’s main initiatives in recent years has involved efforts to increase the employment opportunities available to the said communities, whose people have already proven that they want to engage in the work that JSPL is undertaking.

Today the company’s mine provides either direct or indirect employment for upwards of 1,000 people, many of whom reside locally. JSPL Mozambique has also

helped bring other important changes to the area by investing significant amounts of capital into various infrastructure projects around the mine such as new roads and telecommunications networks.

“One of the things that pleases us most,” Gupta states, “is the fact that during our time in Mozambique we have witnessed things changing for the better and we hope to contribute further to improving

“One of the things that pleases us most is the fact that during our time in Mozambique we have witnessed things changing for the better”

JSPL commissioned a 400 TPH wash plant

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JSPL Mozambique Minerais Limitada

JSPL plan to build a coal-fired power plant

the standards of living in the area in the months and years to come. To date we have donated ambulances to the Tete Hospital to help improve response times, built an on-site clinic, which is accessible to all people from the surrounding area, donated malaria kits to communities and distributed blankets and bed sheets to the Chirodzi Primary Health Centre. We now plan to follow this up with the building of both a primary and secondary school in the near future.”

In February 2013, JSPL Mozambique took the next step in its development by commissioning a 400 TPH wash plant. The commissioning of this plant represents a strategic move towards further expansion of the company’s operations. It also paves the way for the company’s plans of one day producing up to 20 million tonnes of coal per

year, a number it plans to achieve through continued investment in the mine as well as the infrastructure to support its operations.

“Our plans for building a coal-fired power plant are well underway,” Gupta concludes, “with an environmental assessment being carried out as we speak and a MOU having been signed with the Ministry of Energy.

We believe that this plant and the power it will generate will bring with it an increase in job opportunities for individuals and small businesses within the area and will unquestionably help Mozambique develop further still in a big way.”

For more information about JSPL Mozambique Minerais Limitada visit: www.jindalafrica.com

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Empowering

a nation

46 | be weekly

Franchise Association of South Africa (FASA)

Derek Smith, Chairman of the Franchise Association of South Africa (FASA), discusses the important role franchising has to play in the on-going development of the country’s economy

written by: Will Daynes research by: Candice Nice

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Derek Smith, Chairman of FASA

Franchise Association of South Africa (FASA)

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ranchising itself in South Africa Some things do still require fine tuning continues to prove to be very however, with South Africa’s government resilient,” states the Chairman finding itself somewhat lacking at present of the Franchise Association of when it comes to having the capability to South Africa (FASA), Derek Smith. enforce all aspects of the new Act. In response “Analysis conducted by Bendita Gordon of to this it has begun the process of establishing Franchise Directors showed that between an alternative dispute resolution arm of the 2008 and 2010 in the aftermath of the global commission to which it can subcontract recession hitting the country showed that, disputes to be resolved. This is something while the rest of the economy lost well over that FASA is very keen to pursue and it is one million jobs, franchising actually created currently putting an industry code together 25,000 new opportunities for people.” in order to apply for that responsibility.

Having held the position of Chairman Elect “If this is ultimately approved,” Smith for much of 2012, Smith is barely a month explains, “FASA would be able to provide into his new role as Chairman the National Consumer of FASA, however he has Commission with an arm unquestionably taken on the capable of adjudging any job at a very important and dispute within the franchising exciting time for franchising industry. We are hoping that we will get accreditation in South Africa.

New jobs created by “A number of major within the next 12 months, franchises between developments have occurred at which point we would 2008 and 2010 in the last 24 months,” Smith be in a position to mediate continues, “the first being and arbitrate on industry the finalisation of the Consumer Protection disputes, help determine whether someone Act, which has now become law. Getting to is able to call themselves a franchise or not this point was a long process, and included and ultimately assist in pulling the industry a lot of work on our part to ensure that into line a bit more.”

One of the highest priorities for South franchising was treated separately within the confines of the Act.” Africa’s government, like in many countries What this means today is that franchising across the world, is job creation. One of the in South Africa now carries with it specific ways they hope to achieve this is through definitions that a business needs to meet in the creation of the Jobs Fund, a R9 billion order to be deemed a franchise, something fund allocated by the Department of Finance that didn’t previously exist in the country. and administered by the Development Bank Having the technical definition in place of South Africa.

“Due to the nature of South Africa’s is seen as only being a good thing for consumers in the long run. economy,” Smith says, “and the number of

25,000

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unskilled, unemployed people we have here, it is our belief that franchising presents a great opportunity when it comes to job creation. Mentorship is almost an inherent part of building a franchise, with businesses taking people in, training them and putting a network around them that encourages individual growth.”

In 2012, Smith himself was placed in charge of getting the Jobs Fund to recognise franchising as a specific method of job creation.

His efforts were rewarded in February 2013 with the approval of FASA’s first pilot project, while a second project is currently in the final stages of gaining approval.

Curves Africa is a member of FASA

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“Although we do refer to these as pilot projects,” Smith highlights,” if you put them into perspective, we are taking about funding up to 1,000 new jobs. While in contrast to the overall problem this may seem a small number, we see it as a starting point for what is yet to come, and that is a situation where the franchising industry plays a crucial part in solving the country’s unemployment problems.”

In addition to its work with the Jobs Fund, FASA is also working alongside the Department of Trade and Industries on several initiatives, one being supporting the growth of black businesses. “A serious imbalance

Franchise Association of South Africa (FASA)

“Much of the work FASA is doing is about addressing the empowerment of people that are feeling un-empowered at this time” exists today between white and black business ownership,” Smith says, “and this is something that we realise needs addressing.

What we want to do help more people to start smaller or medium sized enterprises in order to become self-sustainable in the future.”

Much like the majority of the work FASA is doing, this is about addressing the empowerment of people that are feeling un-empowered at this time, trying to address job creation, to get stability back into society because of the high unemployment rates, and encourage the transfer of skills, which is a natural part of franchising.

Another area of interest for FASA is the growing number of examples of what it calls social franchising, where the franchising concept is beginning to roll out into other parts of South Africa’s infrastructure such as the health care sector. This is a trend that FASA expects to see far greater movement towards in the not-too-distant future.

Having spent the better part of ten years as part of FASA’s executive committee, Smith has first-hand knowledge of what its strengths, and indeed its weaknesses, are. It is this knowledge that has helped shape his vision for what he hopes to achieve during his tenure as Chairman. “We have made great strides in recent times when it comes

to improving our relevance to government,” he enthuses. “In addition, we have played our part in addressing the need to create jobs and have put our case forward as to how franchising can help achieve this.”

Smith is under no illusions that this is a hugely important period of time for franchising in South Africa and as such he has set some fairly hard, yet realistic targets for the months ahead. Among these targets is getting FASA officially recognised as the alternative dispute resolution arm of the Consumer Protection Act, expanding its Jobs Fund project strategy further and getting FASA recognised throughout the country as a professional body.

“What each of these main objectives have in common,” Smith concludes, “is that they all aim to achieve the same things, those being the creation of new jobs in South Africa, the successful transferring of skills to people and making more people realise that franchising can play a significant role in helping to determine the future prosperity of this country.”

For more information about Franchise Association of South Africa (FASA) visit: www.fasa.co.za

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ZICTA

Changing the for better Director General of ZICTA, Margaret K ChalweMudenda discusses the role the Authority has played during this exciting period of change

written by: Will Daynes research by: David Brogan

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ZICTA

I

t was in 1994 that the Telecommunications Act gave rise to what was at the time dubbed the Communications Authority of Zambia. While it was mandated to regulate and monitor almost every aspect of the country’s telecommunication sector, the Authority was somewhat hampered by the restrictiveness of the Telecommunications Act, which did not give it the power to regulate competition amongst telecoms operators, provide cyber security regulations or even regulate the postal sector.

This situation would remain the same until 2009, when the passing of three Acts, the Postal Services, the Electronic Communications and Transactions (ECT) and the Information and Communications Technologies (ICT) Act numbers 22, 21 and 15 of 2009 respectively, brought about monumental changes to the sector as whole. The events of 2009 also saw the Communications Authority of Zambia renamed the Zambia Information and Communications Technology Authority (ZICTA).

“The fundamental idea behind the passing of the three Acts in 2009, and the rebranding of ZICTA,” explains Director General, Margaret K Chalwe-Mudenda, “was to broaden the Authority’s scope of work to encompass all elements of ICT, ECT and the postal sector.”

Today, ZICTA’s strategic goals include promoting competition within the market, being the catalyst for delivering universal access, being the source of protection for consumers, ensuring that operators, and the nation at large, efficiently manage scarce resources and that ZICTA itself

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Realtime Zambia pioneered national point to point fibre connectivity and has consequently become the preferred optic fibre communications provider for financial and other corporate entities in Zambia.

Plot 1234 Kalembwe Close (Off Great East Road) / Rhodespark P.O.Box 38688 / Lusaka, Zambia Tel: +260-211-255037/8 Fax: +260-211-254202 www.realtime.co.zm

ZICTA

Zambia’s internet penetration is in a stage of steady growth

continues to enhance its developments that mean that as of today the country own capacity to deliver what it is mandated to do. has three mobile operators, “As a result of the Acts that one fixed-line service were passed in 2009, and the provide and approximately Mobile penetration subsequent efforts that have 18 registered Internet Service rate in Zambia been made by those within Providers (ISP’s) operating ZICTA,” Chalwe-Mudenda within its borders. continues, “what we are “Our most recent mobile in 2013 is a more empowered body that data,” Chalwe-Mudenda states, “suggest possesses greater powers to regulate the that there are over ten million registered sector, to penalise and prosecute those that SIM cards today in Zambia, a figure which abuse their positions and monopoly power, we believe equates to a mobile penetration and to negotiate, mentor and arbitrate.” rate of around 55 percent in a country of When the Authority began life back in almost 13.5 million people. Nevertheless, 1994, it is estimated that there were less than with internet penetration still as low as 100,000 mobile and telephone subscribers two percent, the country is clearly still very present in Zambia. The near two decades that much in a phase of gradual growth.” followed have played host to a myriad of major One of ZICTA’s most important undertakings

55%

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came in 2010 when it released an extensive Cost of Service Study, the results of which brought about a landmark shift in how tariffs were regulated in Zambia. “In the lead up to 2010,” Chalwe-Mudenda says, “we brought in an independent consultant to conduct a highly detailed study focusing on the tariff rates that operators were charging consumers for voice services for the telecommunications market as a whole.”

What this consultant found was a clear trend that saw operators setting prices at a much higher rate than they could rightly justify. “Based on the results we received,” Chalwe-Mudenda reveals, “we were able to use the powers we have as set in law to introduce a proposed range of pricing options for the operators, while also installing a price cap which no tariff can exceed.”

The result of these actions soon became clear, with the cost of making a call dropping dramatically. This in turn meant that owning a cell-phone was no longer seen as a luxury afforded only by the privileged few.

Perhaps just as importantly it also helped spur real competition in the marketplace with rival operators battling to offer the cheapest call rates and the most attractive promotions to entice subscribers.

In addition to discussing the work of

ZICTA, Chalwe-Mudenda also takes the time to highlight the importance of the Authority’s membership status with The Communications Regulators’ Association of Southern Africa (CRASA). “The creation of CRASA really helped us as regulators by giving us a forum in which we could come together and share common experiences and resolve issues such as cross border roaming. We see CRASA as being a neat family of industry bodies

“One of ZICTA’s most important undertakings came in 2010 when it released an extensive Cost of Service Study” 58 | be weekly

ZICTA

A farmer on the phone

Satellite dish in a remote village

who are working to remove on is developing a scenario the barriers between where the ICT industry can reach a point where it is one countries and make things of the top contributors to this better for the region as a whole from a communications country’s GDP and a leading perspective.” source of employment, To a great many people, technological progress and Registered SIM cards innovation. While there will Africa represents the next today in Zambia always be things that we can’t frontier for business and predict, I can personally see economic prosperity and a lot of progress being made this is a statement that Chalwe-Mudenda very much agrees with. here and it makes me excited that there are “The continent of Africa to this day retains a lots of good things to come in the future.” great deal of unexploited value and potential, potential that we can capitalise on if we all For more information about work together to ensure that no sector or ZICTA visit: regulator is left behind. When it comes to www.zicta.zm Zambia specifically, what we are working

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