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ISSUE No. 86 | www.bus-ex.com

The secrets to a successful business in China The 50 most hated office jargon phrases

WEEKLY EDITION

Lomiko Metals

The gateway to

greener technology Lomiko’s success with graphene has seen the company become a catalyst for the growth of some of today’s most exciting technological advances

Barrick gold lumwana:

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contents 6

In brief

The week that was

In this section youâ&#x20AC;&#x2122;ll find news, views and comments as we take a look back at the last seven days.

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feature

The 50 most hated office jargon phrases

We asked more than 500 workers to name their top three most despised pieces of management speak.

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strategy

The secrets to a successful business relationship in China

Why the understanding of and respect for traditional business values is key to successfully trading in China.

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Leave me alone, iâ&#x20AC;&#x2122;m blue-sky thinking!!!

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City Power Johannesburg

Power to the people Powering an evergrowing metropolis is no easy task, but one that City Power Johannesburg takes the utmost pride in delivering on a daily basis.

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COver story

20 Lomiko Metals

The gateway to greener technology Lomiko’s success with graphene has seen the company become a catalyst for the growth of some of today’s most exciting technological advances.

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Barrick Gold – Lumwana

Concentrating on copper A combination of a large resource, impressive cost savings and a recently updated mine plan means that the future looks very bright indeed for the Lumwana copper mine.

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City of Bathurst

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COTCO

Bringing neighbouring nations together The multi-billion dollar Chad/ Cameroon Petroleum Development and Pipeline Project is helping to bring economic benefits and a better quality of life to some of Africa’s poorest inhabitants.

Kenya Ports Authority

The transportation hub Mombasa, on the Indian Ocean coast of Kenya, has long played a key role as a major port on the east coast of Africa: run by the Kenya Ports Authority (KPA) it is expanding fast, but is set to be eclipsed by a megaport on the island of Lamu.

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City of enterprise Bathurst is a city with a great past as one of the New World’s first permanent settlements, and a great future.

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Winners & losers

Ups and downs in the week that was...

AstraZeneca Shares soar after Pfizer make a £63 billion takeover bid, which would be the largest acquisition of a British company by a foreign business

LG Reports a big jump in first quarter profits, boosted by strong sales of its smart television sets

Time Warner

Suntory Has acquired maker of Jim Beam whisky in $16 billion deal

Viacom

Year on year profits double, driven by the success of Game of Thrones and Lego Movie

The US media group is to purchase Channel 5 in the UK for £450 million

Samsung Electronics

Singapore’s Tiger Airways

Have reported a 4 percent decline in first quarter sales

Royal Dutch Shell Profits fall 44 percent following refinery write downs

Twitter & LinkedIn shares fall amid social networking slowdown fears

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Microsoft To launch Xbox One in China after the end of a 14 year games console ban

[ Issue 86 ] BE Weekly

Shares in the budget carrier tumble after the posting of widening loses

Indonesia Slowest quarterly GDP growth figures since 2009 with the government ban on the export of unprocessed minerals making an impact

Gregg Steinhafel Target’s CEO has become the first boss of a major corporation to lose his job over a breach of customer data

in brief

business

Beam and Suntory come together in $16 billion acquisition The deal for US company Beam has cost the Japanese company $16 billion and will result in the renaming of the company to Beam Suntory, thus creating the world’s third largest high-end spirits maker. Combined total sales of Beam and Suntory’s spirits business in 2013 amounted to $4.6 billion.

Beam Suntory wants to integrate the spirits business of Japan’s Suntory Liquors before the end of this year.

Suntory is best-known for the Japanese whisky brands Yamazaki and Hibiki, as well as Bowmore Scotch whisky and Midori liqueur.

In addition to Jim Beam bourbon, Beam’s other

brands include Maker’s Mark bourbon, Sauza tequila and Courvoisier cognac.

The newly renamed company will be based out of Deerfield, Illinois and will be led by Beam’s ch ief exe cutive , M at t Shattock. “ We will be focused on continuing our momentum, growing in developed and emerging markets and building on our combined strengths,” he said in a statement. “I’m particularly excited about what brings us together a strong cultural fit based on the entrepreneurial and innovative spirit of two companies with common values and proud heritages rooted in multi-generational family businesses.”

technology

Xbox One to go on sale in China this year The Xbox One will go on sale in the country from September of this year after the lifting of a 14-year ban this past January. Microsoft will launch the console in collaboration with BesTV New Media Co, a subsidiary of Shanghai Media Group.

China banned gaming consoles in 2000, blaming the adverse effects it claimed they had on the mental health of young people.

The restriction stayed in place, with a brief exception made for the PlayStation 2 in 2004.

Understandably, China’s gaming market, which is currently dominated by PC, mobile

and online games, is seen as a key growth area for console makers, what with the industry generating revenues of $13 billion in 2013, a 38 percent jump from a year ago.

“Launching Xbox One in China is a significant milestone for us and for the industry,” said Yusuf Mehdi, corporate vicepresident at Microsoft.

The firms did not disclose the expected selling price in China.

“Creators and gamers alike have eagerly awaited a new generation of entertainment experiences in China, and their wait will be over with the arrival of Xbox One this year,” said Enwei Xie, who will head Xbox China for Microsoft.

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Mining

business

The company began trading on OTCQX under the symbol LMRMF. US investors can find current financial disclosures and real-time Level 2 quotes for the company on the OTC Markets website.

“We welcome Lomiko to the OTCQX marketplace,” said R. Cromwell Coulson, president and chief executive officer of OTC Markets Group.

“Lomiko joins a large number of Canadian companies that have chosen to trade on the OTCQX marketplace to provide their U.S. investors with a superior trading and information experience. We look forward to working with Lomiko’s management team as they increase their engagement with investors in the U.S.” “Lomiko is at an important stage of its development and growth,” stated A. Paul Gill, chief executive officer of Lomiko. “Flake graphite will be in greater demand in the next decade and new materials and technologies such as graphene and 3-D printing may play a role in magnifying demand for graphite.”.

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Leonid Andronov / Shutterstock.com

Lomiko Metals begins trading on the OTCQX

Could Alstom become the focus of an international takeover battle?

Following reports that General Electric (GE) may wish to acquire Alstom, the maker of TGV high-speed trains, Siemens approach the board of the French company to signal what it called its “willingness to discuss future strategic opportunities”.

It has since been reported in French newspapers that Siemens is offering Alstom half of its train-making business and some cash in return for Alstom’s business that makes turbines for the energy industry, according to the report.

Shares in Alstom jumped eleven percent this past Thursday after a report said that GE was prepared to pay $13 billion for the firm. Neither company has formally acknowledged takeover talks, but French politicians have expressed concern over the prospect of a foreign firm buying Alstom, which is one of the nation’s biggest engineering companies. One of France’s biggest privatesector employers, Alstom has some 18,000 staff based across the country.

As well as making trains and signalling equipment it also makes turbines for the power industry.

“Alstom continues and deepens its strategic reflection and will make a further announcement no later than Wednesday, 30 April, morning,” the company said in a statement.

in brief

Best from the web this week

We’ve done the searching, so you don’t have to!

BBC

How does Europe wean itself off Russian gas?

David Shukman Each escalation of the crisis in Ukraine sends a jolt of nervousness far beyond its borders as Europe worries about its energy supplies.

With about one-third of Europe’s gas coming from Russia and about half of that gas flowing through Ukraine, these are tense times.

Most worried are the four EU member states which get literally all of their gas from Russia - but another 12 rely on Russia for more than half their supply.

Read the rest

Business week

BBC

Financial investment success: How much luck is needed?

The Next James Dyson? Eight Top Student Designs Read the rest

Tim Bowler How much luck do you need to be a successful investor? More than you might think, according to one senior US strategist.

Chance or luck is a vital part of every great investor’s fortunes, says Michael Mauboussin, head of global financial strategies at Credit Suisse bank.

Read the rest

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The 50 hated jargon

We asked more tha name their top thr pieces of mana Words by

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offic

0 most office

Leave me alone, iâ&#x20AC;&#x2122;m blue-sky thinking!!!

phrases

an 500 workers to ree most despised agement speak

cebroker.com

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Don dot cro

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feature

n’t forget to the ‘i’s and oss the ‘t’s

“I’m someone who despises management speak, but sometimes I just can’t stop myself using it”

‘B

lue-sky thinking’, ‘pinging emails’ and ‘drilling down’ have been named as some of the most annoying office phrases – according to a new poll.

Jargon clichés such as ‘running something up the flagpole’, ‘thinking outside the box’ and ‘taking something offline’, also featured prominently.

Nearly eight in ten, 79 percent, of office workers also confessed to using at least two examples of cringeworthy office jargon each day.

Other examples of management speak which made workers see red included ‘on my radar’, ‘singing from the same hymn-sheet’, and ‘low hanging fruit’.

One man who took part in the study said: “I’m someone who despises management speak, but sometimes I just can’t stop myself using it.

“More often than not it will happen in meetings when I’m presenting something.

I’ll open my mouth and a diatribe of guff will just spew out. I can even hear myself saying it as well – I sound like a complete pillock.”

One woman added: “Office jargon is definitely a man “When you hear a person thing, you very using jargon, it’s because rarely hear women they haven’t got a clue speaking like that. what they’re talking about” “I definitely think that when you hear a person using jargon, it’s because they haven’t got a clue what they’re talking about, but still need to sound clever”.

A spokesperson for officebroker.com commented: “There are some pieces of management speak that have become so overused that they are now a parody of themselves, bluesky thinking springs immediately to mind.

“If used sparingly these phrases can be quite effective but if relied on too much they will detract all meaning from everything you say, and make you look like a cheap David Brent impersonator.”

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1. Blue-sky thinking

19. On my radar 20. Bench mark 21. Value added

2. Idea shower 3. To ‘action’ a project

22. To run an idea up the flagpole

4. Going forward

23. Results driven

5. Brainstorm

24. To take something offline

6. Getting the ball rolling 7. Drill down 8. Out of the loop 9. Thinking outside the box

25. The idea’s got legs

26. Game-plan 27. Hit the ground running

10. Touch base

28. Customer centric 29. No ‘i’ in team 30. Back to the drawing-board

11. Singing from the same hymn-sheet 12. Circle back

31. Re-inventing the wheel 32. Dot the ‘i’s and cross the ‘t’s

13. Strategic fit 33. Action plan 14. Bottom line 15. Low hanging fruit 16. Win-win

34. Bells and whistles

17. Play hardball 18. Best practice 14

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35. Moving the goalposts

feature

36. Back of the net 37. On the same page

Time to take this idea ‘off piste’

38. Open door policy 39. To ‘ping’ an email 40. To kick a project into the long grass 41. Joined up thinking 42. Pick up and run with it 43. Streamline

44. Close of play

45. To take an idea or project ‘off piste’ 46. Level playing field 47. Quick win 48. In the driving seat

49. No brainer

About the author Founded in 2001 by Jim Venables & Andy Haywood, the officebroker.com story began after the one time recruitment specialists switched from filling job vacancies to empty offices. Drawing upon their experience of working closely with clients and satisfying requirements, officebroker.com soon began to offer a unique service to businesses seeking office space. www.officebroker.com.

50. To ‘park’ a project BE Weekly [ Issue 86 ]

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The secrets to a successful business relationship in China Why the understanding of and respect for traditional business values is key to successfully trading in China Words by

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David Clive Price

A

client recently asked me: ‘Is it really necessary to know all that much about traditional values and etiquette and all that in Chinese business culture? After all, China is rapidly modernising and becoming more and more Westernised. We all do business in the same way. Soon the Chinese will be more or less like us.’

Well, yes and no. There is no doubt that the mixture of Confucian, Taoist and Buddhist influences on the way Chinese think about life and do business is less visible to the unsuspecting Westerner than it was twenty years, or even ten years ago.

There is a surface veneer of intense modernity and cosmopolitanism to the residents of the Tier 1 (Beijing, Shanghai, Guangzhou etc) and big coastal cities of China that would seem to infer that amid all the advertising hoardings, the large cars, the latest mobile phones and electronic gadgets, the speaking of English, the Chinese way of doing business was becoming more or less similar to that in Western countries.

SCRATCH THE SURFACE However, scratch beneath the surface and many foreign executives will find that the Chinese business environment, although apparently ‘Westernised’, retains many of the traditional characteristics of Chinese culture.

Family values remain extremely important, as Confucianism dictates, with high respect for

seniority and the elderly, and those children that are not sent off to college or university (many to the UK) remain in the family home until they are married.

That said, there is one exception to the Confucian rule that emphasizes the predominance of the male line, which is still observed in Japanese and Korean families and business. In China, communism’s emphasis on everyone being equal means that there are many more women in business, and in positions of power, than in other Confucian societies.

Due to their history, the Chinese are polite but often slow to accept any outsider into their charmed family circle or local network. To the foreigner, they may seem to be not very trusting and even secretive or ‘unreadable’. But even within their own circles, the Chinese can be very slow to accept others. If you speak the same dialect or come from the same village or locality, it is much easier to be accepted.

What is true at the local level is even truer at the big city level, where identity and trust are preserved through behaviour that may seem ‘clannish’ to the outsider. This closed mentality means that Westerners must devote time and effort to getting into the circle of trust by slowly building good relationships.

PERSONAL TRUST IS ESSENTIAL Generally speaking, in Chinese business the question of the deal (the ‘offer’), the

“many foreign executives will find that the Chinese business environment, although apparently ‘Westernised’, retains many of the traditional characteristics of Chinese culture”

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strategy

“Chinese business is above all personal, and it is as a likeable and well-respected person that will succeed, not necessarily as a professional as in the West”

potential profits, the possible transaction, the organisation your represent, even the win-win benefits of a proposal will be considered as secondary to the question of whether your Chinese counterpart will feel comfortable doing business with you. In other words, trust (xinyong) has to be established.

However, trust usually takes a considerable time and a lot of entertainment and socializing. Chinese business is above all personal, and it is as a likeable and well-respected person that you succeed, not necessarily as a professional as in the West. That is why first impressions are so important in Chinese business etiquette and in all Chinese business negotiations.

At the corporate level, senior Western executives should make sure that they fulfil the expectations of Chinese protocol when they meet their Chinese counterparts and that junior managers do the same. The Chinese will expect

similar ranks to be matched with similar ranks in meetings, and that their Western counterparts build a personal relationship with their equals in the pecking order.

Companies that chop and change their staff in their China offices, or their senior executives, will often find that these personal relationships have to be formed all over again.

In other words, Confucian values and etiquette still have meaning in Chinese business culture. Despite all the apparent modernity, the new technology and internet businesses, and the desire of the younger generation in the more affluent cities (known as the Millennials or Generation Y) to break away from their parents’ way of doing things, the emphasis on hierarchy, teamwork and family still holds sway.

If you want to succeed in China, learn the traditional business values!

About the author

David Clive Price With 25 years’ experience of Asia business, David Clive Price helps Western companies, SMEs and entrepreneurs to launch and expand in Asian markets. His bestselling Master Key Series offers proven strategies for building profitable partnerships and gaining competitive advantage in Asia. www.davidcliveprice.com

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Lomiko Metals

The gateway to greener technology Lomiko Metalsâ&#x20AC;&#x2122; goal was to become a supplier of speciality minerals for use in green technology. Its success with graphene has seen the company become a catalyst for the growth of some of todayâ&#x20AC;&#x2122;s most exciting technological advances words by

Will Daynes

research by

Vincent Kielty

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Flake Graphite in host from Quatre Milles Property

he theory of graphene was itself first explored in 1947 by PR Wallace, work that is now widely recognised as the starting point behind the understanding of the electronic properties of 3D graphite.

A crystalline allotrope of carbon with twodimensional properties, high-quality graphene was a long sought after commodity due to its properties which make it strong, light and an excellent conductor of heat and electricity.

57 years after Wallace’s pioneering work, Andre Geim and Kostya Novoselov, both

T

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based at the University of Manchester in the UK, successfully extracted single-atom thick crystallites from bulk graphite, pulling graphene layers away from graphite using a micromechanical cleavage, or Scotch tape, technique. Geim and Novoselov’s efforts would see the pair go on to receive several awards, most notably the 2010 Nobel Prize in Physics.

Fast forward to 2014 and graphene is considered a “supply critical and strategic mineral” by the US and the EU, and can

Lomiko Metals

“Graphene is considered a ‘supply critical and strategic mineral’ in the US and EU, and can be found being used across the planet”

be found being used across the planet in order to achieve critical advances in various industries and technologies. Graphene is also very much seen today as a fundamental ingredient in the recipe that many hope will soon help spur on the development of a greener economy. Multi-national companies such as Samsung and Imerys have been secretly researching new techniques to manufacture graphene and have recently announced new developments that include flexible television screens.

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A Paul Gill, President and Chief Executive Officer

One company that supports this vision is Lomiko Metals, a British Columbia based business that came into being with the desire to become a supplier of speciality minerals.

“We designed our ‘electric minerals’ focus to search for opportunities in lithium, copper, tin, silver, cobalt and graphite, each of which possesses specific applications that are vital for the development of new technologies including electric vehicles which use these materials,” explains President and Chief Executive Officer, A Paul Gill.

Lomiko’s goal has always been to be what Gill calls a “sharp shooting group”, one that goes in and identifies early stage properties of particular significance, draw up a strategic plan for said property and create the highest level of value from it by taking it from the acquisition stage through to pre-feasibility.

“By following this business model we have established a strong track record when it comes to capitalising on the opportunities we identify in the marketplace,” Gill continues.

One such opportunity would be the company’s Quatre Milles graphite property, located 175 kilometres northwest of Montreal. Particularly interesting is the East block of that property which consists of 28 contiguous claims totalling approximately 1,600 hectares. The company has already received results from 23 drill holes showing high grade, high carbon content graphite near the surface.

“The purpose of our graphite property is to address the needs of future markets that will require an increasing amount of graphite

“The purpose of our graphite property is to address the needs of future markets that will require an increasing amount of graphite materials, the electric vehicle sector for example”

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Lomiko Metals

View of graphite under magnification

“The two scientists who materials, the electric vehicle Did you know? started up this company did sector for example,” Gill says. “All so with the aim of synthesising the facts and research in front of graphene, and selling it to us strongly suggests that we are 1947 the labs within Fortune 500 reaching a point where supply The year that companies,” Gill states. “We will soon be outstripped by the theory of saw a fantastic business model demand for graphite materials. graphene was that would require cheaper and While at present Chinese first explored increased quantities of graphite groups are tending to sell their for their customers.” graphite at cheap prices, this $5.5 million The two companies worked will not last much longer. The The amount closely to develop and find new growing demand for graphite of financing business opportunities, one of and graphene will mean that its recently secured the most interesting being the value will increase and that is

by Lomiko rapidly expanding market for 3D where opportunities really open printing. “It is amazing to think up for companies like ours.” that since 2004 we have gone One particular company from a situation where there were under 100 that Lomiko sought out was Graphene patents registered for graphene to the point Laboratories, a company committed to where today there are more than 10,000,” applying fundamental science and technology Gill enthuses. “Naturally a number of these to bring functional graphene materials and will overlap, however some will be unique devices to market.

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Chemical Vapour Desposition tube used to produce test batches of graphene

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Lomiko Metals

“We are about to embark on an OTCQX listing. This will open us up to over 30 million potential investors, a large number of which are major hedge and investment funds”

and game changing. The use of graphene within a 3D printing wire or filament in order to print conductive 3D objects creates new methods of manufacturing, for example Addictive Manufacturing. This is the area where we believe Graphene 3DLan is ahead of the curve.”

It isn’t the only project that has Gill excited though, another being the new graphene supercapacitor project. Graphene Labs received a prototype of said supercapacitor, as well as a report from Stony Brook University in Long Island and New York State’s Center for Advanced Sensor Technology (Sensor CAT).

“We provided the graphite to this project which allowed for the creation of reduced graphene oxide (RGO),” Gill highlights. “This RGO manages to retain the conductive aspects of the graphite within it, and in many cases actually enhances it. When it comes to batteries, the more conductive the material is, the smaller the battery will be and this has huge potential applications for electric vehicles. If you look inside today’s electric vehicles the battery tends to be between a quarter and a third of the car size alone. If you can bring the weight down, or even retain its size but with much more battery life provided, the range of the vehicle increases, thus making it much more competitive against its peers within the internal combustion market.

The goal for electric vehicles has to be to ensure that there is no change in convenience for the driver and no feeling of loss involved with owning a greener model. The aim has to be for the consumer to say that what they have is a better product and one that they

enjoy using, and that will be the quickest and most effective way to get people to positively adapt to this change.”

The future certainly looks bright for graphene and for Lomiko as well, what with the company having recently secured financing to the tune of $5.5 million. This will allow the company to take its Quatre Milles graphite property from its later stage exploration phase through to its pre-economic assessment (PEA). This is possible because of several of the project’s unique characteristics, including the fact that the mineral itself is near surface.

The graphite boasts high carbon content and is extremely amenable to low cost processing.

At time of writing, Lomiko also finds itself on the verge of listing in the United States for the first time. “We are about to embark on an OTCQX listing,” Gill concludes. “This will open us up to over 30 million potential investors, a large number of which are major hedge and investment funds. We feel this presents us with a great opportunity to expose our ideas to a very large market, one that has already expressed a strong interest in graphene and its potential, therefore if anything is going to be a catalyst for growth in the short term, this will be it.”

Lomiko Metals

604-729-5312 apaulgill@lomiko.com @apaulgill www.lomiko.com

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Barrick Gold

Concentratin

A combination of a large resource, impressive means that the future looks very bright words by

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Will Daynes

research

d - Lumwana

ng on copper

cost savings and a recently updated mine plan t indeed for the Lumwana copper mine

research by

Robert Hodgson BE Weekly [ Issue 86 ]

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Barrick Gold - Lumwana

ocated within one of the most prospective copper regions in the world, Barrick Gold’s Lumwana copper mine is one of Zambia’s best examples of a prosperous mining operation.

Situated within a stable jurisdiction with a long history of mining and boasting established infrastructure, Lumwana possess a large, high potential copper deposit and a multi-decade reserve life.

Ore from Lumwana, which is predominantly sulphide, is treated through a conventional sulphide flotation plant, producing copper concentrate for smelting. On site, an extensive mining fleet and array of equipment can be found at work. This includes ten Sandvik DK45 drills, three Cubex DR560 drills, ten D10 track dozers, six CAT 16M motor graders, three 777

L

This concentrate is only sold on a domestic basis and is not subject to the ten percent duty imposed on all copper concentrate sold internationally. Furthermore, the longterm agreements the mine has in place help ensure that its fill production can be processed, meaning smelter capacity is not an issue for Lumwana.

Production at Lumwana in 2014 is currently projected to reach similar levels to that experienced in 2013. Meanwhile, the mine is pursuing a number of initiatives to further improve on cost reductions it has achieved to date. The mine has made significant cost savings through the optimising of its mine plan to smooth our annual stripping requirements, by rationalising contractor requirements and headcount, by in-sourcing maintenance labour

“Average concentrate grades for 2013 were recorded at 31.5 percent, while the processing cost was calculated at $3.53 per tonne” water trucks, three CAT 994/993 front end loaders, 31 Hitachi 4500 dump trucks and six Hitachi 5500 hydraulic shovels/excavators.

A 20MTPA design copper concentrator has been optimised to 24.5MTPA at the mine site. In 2013 Lumwana was responsible for producing approximately 260 million pounds of copper at an average copper recovery rate of 93.4 percent. Average concentrate grades for the year were recorded at 31.5 percent, while the processing cost was calculated at $3.53 per tonne. As of 31 December, 2013 proven and probable copper reserves at the mine were put at 6.6 billion pounds.

Copper concentrate from the mine is sold under long-term sales agreements to three smelters based in Zambia, Chambishi Copper Smelters, Konkola Copper Mines and Mopani.

and by renegotiating various key contracts.

At the same time Lumwana’s management team have successfully improved fleet productivity by increasing LMC tonnage by 18 percent compared to 2012 and achieved efficiency improvements by reconfiguring the mine’s organisational structure and launching an improved Management Operating System. In total management believes that the aforementioned focused improvements all contributed to a $100 million cost reduction in 2013.

Today, approximately 90 percent of Lumwana’s workforce is Zambian, a figure that means that the mine falls in line with not only the country’s local employment plan, but also Barrick’s Community Relations Management System. Indeed Lumwana has a long history

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The GIANTS of mining Hitachi has developed an ultra-reliable and durable range of EX-6 excavators and AC drive dump trucks. They are working 24/7 to deliver higher levels of power, performance and productivity. Hitachi is setting new standards in comfort and safety, and for ease of access and maintenance. The giants of mining offer lower running costs and a higher return on investment.

Hitachi Construction Machinery Zambia Co., Ltd. www.hitachi-c-m.com/za

NEW PRECIOUS RESOURCE DISCOVERED

Click here to visit our dedicated homepage for the mining community www.bus-ex.com/mining BEST PRACTICE IN MINING

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Barrick Gold - Lumwana

â&#x20AC;&#x153;Management believes that the focused improvements all contributed to a $100 million total cost reduction in 2013â&#x20AC;?

of working together with local communities in order to foster sustainable, long term success.

Examples of initiatives taken by the mine can be placed into three categories, those being health and safety awareness, education development and community infrastructure. In the first category the mine has provided vital support to the Lumwana Community HIV and AIDS Task Force, and has contributed towards road safety education, community-led water

and sanitation, and gender-based violence awareness programmes.

On the educational side of things Lumwana supports countless community schools and public libraries, funds primary and tertiary education scholarships and has successfully maintained the on-site Lumwana Mine School since 2009. In recent years the mine has also provided assistance in the drilling of boreholes for clean water, the

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Barrick Gold - Lumwana

“Today, approximately 90 percent of Lumwana’s workforce is Zambian”

commissioning of by-pass roads for haul trucks, road safety awareness campaigns and population influx management.

Lumwana is also well regarded for its efforts towards fostering wealth creation. It has done so to date through the creation and support of enterprises promoting literacy in the community and the empowerment of women as earners and savers. Lumwana also supports several Agri-Food Innovation Partnerships as well as small and medium business development. In the latter it has put in place the Lumwana Business Incubator Programme as well as facilitating international joint venture investor brokering and Access to Finance partnerships.

Long before the turn of the year the mine identified a number of growth opportunities for 2014 which it continues to pursue as we speak. Again it has placed these opportunities into three separate categories, which are enabling people, process initiatives and what it calls its business improvement pipeline. In the first instance the mine plans to ensure its people are well supported through a combination of training and capacity building, and communications and change management.

In order to embed significant process improvements the mine has been working hard to streamline the shift handover process and enhancing the daily mine planning and review processes. It also plans to launch detailed project management best practices, which will assist in planning, delivering and tracking key 2014 priority projects, and identify the mine’s next wave of longer-horizon initiatives.

The new mine plan that Lumwana is working under is designed to maximise free cash flow in the current economic environment and preserve optionality.

The goal of Lumwana’s management is to continue to improve the mine’s productivity at a time when the outlook for long term copper prices remains strong thanks to continued demand growth and supply-side challenges. What this collectively means for the mine is that it is very well positioned for what the future may bring.

Barrick Gold - Lumwana

+1 416 861-9911 info@barrick.com @barrickgold www.barrick.com

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City of B

City of en

Bathurst is a city with a great past as one of and a great future: though it may be experi the way it deals with them words by

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John Oâ&#x20AC;&#x2122;Hanlon

Bathurst

nterprise

the New Worldâ&#x20AC;&#x2122;s first permanent settlements, iencing a few little local difficulties just now, m is part of its success story research by

Stuart Platt BE Weekly [ Issue 86 ]

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ucked into a corner of Chaleur Bay in north-eastern New Brunswick (NB), Bathurst claims to be the only truly bilingual municipality in Canada, with exactly half its 12,000 population claiming English as their first language, half French, and most of them comfortable with either. The body of water to the north may have been named with irony – this is northern Canada and much of the year chaleur is in short supply.

City Manager and Treasurer André Doucet talking to us in mid-March felt ready for spring to come: “We just had a storm that left 50 centimetres of snow – and over a single weekend in January we had 85 centimetres – it must be climate change!”

However even cold weather is good for the local economy. Bathurst is a mecca for snowboarders and their local club with 800 members is the largest in the province.

4-wheel drive enthusiasts also love the snow though they come all year round. Between them, and together with people who take quieter enjoyment from the dramatic beauty of the NB north coast, they bring in a lot of revenue to local businesses and hotels.

Doucet wishes the secret of the region wasn’t quite so well-kept, and that he had more resources to promote its many attractions. “A brochure is ok as far as it goes but we need to have more stuff out there on Facebook, Twitter and YouTube.” Stuff like the excellent series of YouTube shorts that you can find under Experience Bathurst in which French

T

“A brochure is ok as far as it goes but we need to have more stuff out there on Facebook, Twitter and YouTube”

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On Chaleur Bay

City of Bathurst

“Some people said Bathurst would be a ghost town after the mine closed but that has not happened” speaking Monique and English speaking Meredith try out just about all the available activities from luxury hotels to rock climbing.

The city’s biggest revenue source is from property taxes. NB is unique in Canada in not collecting these on a local authority basis – instead the provincial administration in Fredericton assesses and collects the taxes and distributes them to the municipalities in twelve monthly portions. The loss of control over assessment is more than compensated for by not having to do all the admin, and an added advantage is the removal of any local pressure on City Hall.

The glory days of mining, which used to sustain the area, finally petered out last year with the closure of Xstrata’s Brunswick mine, which has had several owners following its opening in 1964 and in its heyday was one of the world’s largest and most profitable zinc mines. At the peak of production it employed more than 2,000 people, and still supported 800 at the time of closure in well paid jobs that are proving hard to replace, says Doucet.

The city is now pinning its hopes for a revival in regional mining on local company Trevali, which owns the Caribou mine and mill, Halfmile mine and Stratmat polymetallic deposit all located in the Bathurst Mining Camp of northern New Brunswick.

Trevali plans to open three new lead/zinc operations at its Caribou Mill complex just 20 miles to the west of Bathurst in the later part of this year or early in 2015. This could create

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inspired Your weekly digest of business news and views

www.bus-ex.com

Eddy Group Limited, a Maritime based wholesale distribution business, has been a construction industry partner for over 100 years. The fourth generation family business with 7 locations throughout New Brunswick and Nova Scotia takes pride in providing quality products, customized solutions and service to our industrial, commercial and residential customer base.

www.eddygroup.com

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up to 300 local jobs and bring back some of the skilled miners that have left the region to work in other parts of Canada, Doucet points out. “These guys have been mining all their lives: their homes and families are here but they have to go where the work is – they would definitely rather work in NB though!”

Nevertheless the city needs to address unemployment as a matter of urgency.

Northern NB has always been an area of high unemployment, with many seasonal forestry and fishery workers in the Acadian Peninsula.

“A few years ago we hired an economic development officer to attract businesses to the city, to bring new business in and make sure the existing businesses keep operating and maintain the existing jobs. We don’t want to lose what we already have!” The city works in coordination with the Province of NB’s economic development department, he says, however it is hard to compete with cities

City of Bathurst

Bathurst’s Bandstand

“A few years ago we hired an economic development officer to attract businesses to the city, make sure the existing businesses keep operating and maintain the existing jobs” like Dieppe which are close to the Greater Moncton International Airport.

This may entice high tech firms, but there are some local success stories in other industries. Metal fabrication is one of Bathurst’s strengths, but one of the city’s strongest businesses is Industrial Rubber Company (IRC). When German defence contractor FFG was awarded a $100 million contract for the conversion of Canada’s Leopard 2 tanks into armoured engineering vehicles (AEVs) it selected IRC, which has vast experience

manufacturing parts for military vehicles, as its main Canadian partner on the project. As one government minister commented when the deal was announced in July 2012: “This agreement is excellent news because it will create a number of high value jobs at IRC and will generate economic spin-offs that will benefit all of Atlantic Canada.”

Success stories like these, where high value jobs are brought into the city, are music to André Doucet’s ears. He is no less happy to note that some new businesses are being

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attracted to the area. Regulation changes in Canada on April 1 allow licensed producers to grow medical marijuana on a commercial scale. Health Canada estimates the North American market should top $5 billion-plus by 2016. That being so the decision by British Columbia company International Herbs to buy a former textile mill at Atholville just 50 miles west of Bathurst could be significant for the entire region. Just a quarter of the 400,000 square foot facility will be used initially, allowing plenty of scope for expansion, however it will bring 200 new jobs to the area from the start, says Doucet.

All this is good news for Bathurst, and the city is doing its utmost to push economic development. That should not eclipse the best practice it has demonstrated in more mundane activities. Doucet is particularly proud of its green credentials. “We have invested to make our buildings more energy efficient. We have a civic centre with two ice rinks that was a big energy consumer, and with all the retrofit we did in that building we are saving $55,000 a year in power!”

This was achieved through simple measures like changing to a more energy-efficient boiler and installing low energy lighting – but it served as a benchmark for other municipalities and contributed to Bathurst’s recognition as one of the Partners for Climate Protection within the Federation of Canadian Municipalities (FCM), which represents more than 2,000 authorities, only 230 of which have been recognised throughout Canada, and in NB only 17.

It is a very rigorous programme that requires five ‘milestones’ to be passed

“We needed a plan of action and decided to use the gas tax 100 percent on road construction and repairs”

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City of Bathurst

– Bathurst passed its final milestone last year.

The city has shown real leadership here – for example switching all the municipal lighting it controls over to LED. Most of the street lighting infrastructure is owned by company NB Power, and the utility is now following suit.

Another huge achievement came through smart thinking. Bathurst has a network of more than 100 kilometres of roads to maintain. This is a challenge, Doucet admits, but the Canadian government has announced that its gas tax fund (GTF) that provides NB with over $225 million a year (Bathurst gets around a million of that). That is a great help but then the municipality was faced with a new requirement to spend $40 million over the next ten years to meet new government wastewater treatment standards. GTF can be spent on wastewater treatment but there was no way it would cover that level of investment. “We needed a plan of action and decided to use the gas tax 100 percent

on road construction and repairs – the high investment on water treatment was called for because of the high risk category we fell into but by combining the roads programme with water and sewage replacement below street level the risk assessment came down and the investment to a more manageable $4 million.”

Expect to hear more about this city, then.

“Some people said Bathurst would be a ghost town after the mine closed but that has not happened,” says André Doucet proudly. With him to fight its corner, aided by the likes of the lively Monique and Meredith, Bathurst will soon be booming again.

City of Bathurst

(506) 548-0400 city@bathurst.ca www.bathurst.ca

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power to the people City Power Johannesburg Powering an ever-growing metropolis is no easy task in anyoneâ&#x20AC;&#x2122;s book, yet this is the responsibility entrusted to City Power Johannesburg, one that it takes the utmost pride in delivering on a daily basis words by

Will Daynes

research by

Robbie Hodgson

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Johannesburg at sunset

ocated in the eastern plateau area of South Africa known as the Highveld, Johannesburg is country’s largest city by population and the provincial capital of Gauteng, which boasts the largest economy of any metropolitan region in all of Sub-Saharan Africa.

The economic and financial hub of South Africa, Johannesburg is one of the world’s leading financial centres. Its importance to the country’s success is such that it is responsible for producing up to 16 percent

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of South Africa’s gross domestic product and accounts for as much as 40 percent of Gauteng’s economic activity alone. In a survey conducted in 2007 by MasterCard, Johannesburg ranked 47 out of 50 top cities in the world as a centre of commerce, the only African city to appear on the list.

Responsibility for providing electricity to such an important metropolis rests with City Power Johannesburg, which like the country’s other utilities providers is run on self-funded business lines, receiving no annual grants

City power Johannesburg

“Johannesburg’s importance to South Africa’s success is such that it is responsible for producing up to 16 percent of South Africa’s GDP”

from the city, providing billable services direct to individual households. In supplying power to such a vast geographical area, City Power has divided the city into seven regions, these being Lenasia, Bryanston, Hursthill, Reuven, Siemert Road, Midrand, Roodepoort, and Alexandra.

It is the company’s core mission to provide the city with a sustainable, affordable, safe and reliable supply of electricity, while also providing prompt and efficient customer service at all times, and undertaking its

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(PTY) LTD

(PTY) LTD

City power Johannesburg

business in an environmentally acceptable manner. As well as maximising the utilisation of its assets, City Power strives to exceed customer expectations and sustain and grow its revenue base.

Providing everyone with access to electricity is of vital importance to the business and in doing so it hopes to cost effectively meet both national and international standards in electricity supply.

City Power is committed to good corporate governance standards and complies in all material respects with the relevant principles of the King II code. Robust systems, policies and practices are in place to ensure that City Power conducts its business in line with global best practice.

City Power’s client base is segmented into key customers, large power users, and prepaid, domestic, agricultural and commercial customers, with the domestic segment forming the majority of this customer base. To meet the needs of corporate customers City Power has concentrated on improving the wire network to reduce outages and power surges. Considerable progress has been made in recent years, with 70 percent of its customers now rating the service as good.

For residential customers, and in line with the government’s commitment to ensure all South Africans have access to electricity,

“It is City Power’s core mission to provide the city with a sustainable, affordable, safe and reliable supply of electricity”

Electro Inductive Industries Electro Inductive Industries (Pty) Ltd (EII) is a well-established level 2 BBBEE company, manufacturing high quality SABS approved transformers (16kVA to 20MVA up to 66kV) and miniature substations for the African market.

EII is expanding with exciting developments, including the addition of related products and is proud to be the contracted supplier of miniature substations to City Power. Another initiative is an extended marketing relationship with Polybox - an established supplier of polyethylene enclosures. Together they are developing renewable energy hot water supply systems, focusing on rural African areas to bring POWER FOR LIFE FOR AFRICA! www.electroi.co.za

Electrical insulators

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Specialist in Design & Manufacturing

Revive Electrical Transformers (Pty) Ltd, established in 1997, has grown to be one of the largest Distribution Transformers Manufacturers in Africa. Our success has been our dedication to our meet with our discerning customers’ requirements and to maintain our reputation to provide the market with competitive prices, excellent quality and on time delivery.

Our Local customers include Eskom, the various municipalities, Siemens, Voltex, City Power, ARB, and contractors in South Africa. Our international Customers include Botswana Power Corporation, Mozambique, Swaziland, Namibia, Zambia, DRC, Ghana, Malawi and Lesotho.

Revive Electrical Transformers is the first South African company to build cast resin dry-type transformers locally.

Our Products: • Oil immersed distribution transformers • Cast Resin dry type transformers • Oil Mini-Substations • Cast Resin Mini-Substations • Neutral Earthing Resistors (NER), Compensators (NEC) and compensators with Auxiliary transformers (NECRT) • Single wire Earth Return transformers (SWER Transformers) • Amorphous core transformers • Custom Design Transformers

27 Waterval Road, Kliprivier, Randvaal, South Africa Tel: +27 87 135 0149 – Fax: +27 01 020 0852 20 Linroy Street, Steeledale, Johannesburg, South Africa Tel: +27 11 613 1508– Fax: +27 11 613 1510

Email: sales@ret.co.za | www.ret.co.za

City power Johannesburg REVIVE ELECTRICAL TRANSFORMERS Specialists in design and manufacturing of oil and cast resin distribution transformers and mini substations. RET has grown to be one of the largest distribution transformer manufacturers in Africa. Our success comes from our dedication to meet with specialized customer requirements and our reputation to provide the market with competitive prices , excellent quality and on time delivery. RET has numerous accreditations namely ISO 9001, ISO 18 000, ISO 14 000 and our products conforms and certified against local and international standards I.e., Eskom, SANS 708, IEC 60076 and SANS 60076 transformers specifications. www.ret.co.za

the introduction of 50 kWh basic free electricity per month in June 2002 has been very well received. In context, this enables a householder to run two 60 W lamps and a TV set for four hours per day for the month and consume just over half the free allocation. This was one of the first-and highest-initiatives in the country and is a considerable benefit to customers in poor communities.

Each and every one of the company’s customers has access to a sophisticated call centre, which manages over 63,000 calls in the peak winter months and provides a singlesource service for all queries, applications and payments. City Power also has dedicated customer service managers in all its areas of operation. Regular customer’s forums are providing a valuable base for feedback and improved customer service.

City Power employee at work

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â&#x20AC;&#x153;City Power has a responsibility to the communities in which it operates to educate customers about the safe use of electricityâ&#x20AC;?

Proud to be recognised as a dynamic employer, City Power is focused on providing the best working environment in its industry and operating at consistently high levels of productivity. This has enabled the company to attract the top talent in its field, joining a team of 1,800 employees.

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Attractive benefits and leading human resources practices and policies have positioned City Power as a preferred employer. All employees enjoy retirement fund and medical aid benefits, while the new and much-used employee wellness clinic offers primary healthcare and occupational

City power Johannesburg

Johannesburg night cityscape

health management in-house, working with leading private healthcare groups.

Furthermore, as a utility provide, City Power has a responsibility to the communities in which it operates to educate customers about the safe use of electricity, the impact of cable and electricity theft and the importance of account payments.

A major component of the companyâ&#x20AC;&#x2122;s social responsibility has been the introduction of free basic electricity. City Power has also invested a substantial amount in community empowerment projects in Alexandra, eastern Johannesburg, and a sprawling township that is undergoing a multi-faceted renewal phase. City Power

has outsourced certain tasks to companies in Alexandra and supported schools in the area with sports equipment to improve general health and reduce crime. An educational campaign aimed at learners covers electrical safety and prevention of vandalism of electricity equipment.

City Power Johannesburg

(011) 375 5555 info@citypower.co.za www.citypower.co.za

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Bringing neighbouring nations together COTCO The multi-billion dollar Chad/Cameroon Petroleum Development and Pipeline Project is helping to bring economic benefits and a better quality of life to some of Africaâ&#x20AC;&#x2122;s poorest inhabitants words by

Will Daynes

research by

Abi Abagun

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Oil tanker

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COTCO

andlocked within north-central Africa, Chad is among the world’s poorest countries, hindered by its desert climate and the fact that it has been ravaged by various civil wars during thirty of its forty years of independence. For decades the country suffered from a lack of economic investment, leaving it with one of the continents poorest infrastructure networks and a large majority of its adult population living below the poverty line.

In more recent years however there have been several positive steps taken by a handful of regional and multinational companies to bring much needed work and development to Chad, and indeed to other surrounding countries.

L

Ownership of the project comes in the form of a three-company oil consortium made up of ExxonMobil, which owns a 40 percent interest, and Petronas Malaysia and Chevron, which hold 35 percent and 25 percent stakes respectively.

Furthermore, the governments of Chad and Cameroon hold a combined three percent stake in the pipeline portion of the project.

A s well as conduc ting oilfield development and production on behalf of the consortium, ExxonMobil also provides project management services to pipeline companies Tchad Oil Transportation Company (TOTCO) and Cameroon Oil Transportation Company (COTCO). Both TOTCO and COTCO are responsible for pipeline activities in their home countries.

“Comprising some 300 oil wells that have been drilled in Chad’s south-western region, it is among the largest public/private development projects being carried out on the continent” One such step has been the development of the Chad/C ameroon Petroleum Development and Pipeline Project. A $3.7 billion undertaking, comprising some 300 oil wells that have been drilled in Chad’s south-western region, it is among the largest public/private development projects being carried out on the continent. The oil extracted from Chad is subsequently transported via a 640 mile underground pipeline, through neighbouring Cameroon, to an offshore export loading facility based eleven kilometres off the latter’s coast.

The pipeline was completed, and first oil achieved, in July 2003, roughly one year ahead of schedule, with revenues beginning to accrue later that same year.

The Chad/C ameroon Petroleum Development and Pipeline Project is expected to generate, and in a number of cases has already generated, significant benefits for both Chad and Cameroon over its lifetime.

For Chad, the consortium estimates revenues in excess of $2 billion to be accrued from a combination of royalties, taxes and other sources over its 25 year existence. Meanwhile, Cameroon can expect to see revenues from transit fees and taxes of up to $500 million coming into the country’s coffers. Both of these estimates have since been supported by research conducted by the World Bank.

During the project ’s three-year construction phase it provided employment to more than 13,000 people from Chad and

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Reducing risk Improving safety Increasing efficiency

caverton aviation cameroon

Leading provider of premium aviation support services in sub-Saharan Africa Caverton Helicopters Ltd (CHL) was established in Nigeria, on September 2002 as an aviation logistics support company and forms part of the Caverton Offshore Support Group. Caverton Aviation Cameroon is a subsidiary of CHL and has positioned itself in Cameroon to provide safe, quality and efficient aviation support solutions for its clients in Cameroon.

The following are services currently offered by Caverton Aviation Cameroon: • Offshore & Onshore Logistics (Helicopters & Fixed-Wing) • Private Charters (inc. Air Tours & Aerial Photography) • Maintenance, Repair and Overhaul Services • Approved service center for Agusta Westland helicopters in Africa

T: +237 99890604, +234 01 270 5656 E: enquiries@caverton-helicopters.com www.caverton-helicopters.com

COTCO

Cameroon, a large percentage of whom were previously unskilled yet received training from the operators which in turn helped them to prepare for future job opportunities. At the same time, over $740 million in procurement fees has gone to support local contractors tasked with various responsibilities including truck transportation, civil works, vehicle maintenance and food catering.

Since construction began more than $3 billion has been spent on goods and services from local businesses, with almost $2 billion spent in Chad and over $1 billion in Cameroon. Despite construction having been completed in 2003 the project’s operators have continued to prioritise the engagement of local and international supply partners to manage important activities and responsibilities across the operation.

Cameroon for its part obtains its project revenue primarily through transit fees earned from the use of the export pipeline system which intakes Chad’s oil at the Mbére River where the Chadian portion of the pipeline ends. The Cameroonian portion of the export

Caverton Helicopters Cameroon Oil Transport Company S.A, COTCO, contracted Caverton Helicopters Limited in March 2012, to provide one DHC6-300 Twin Otter Airplane for the provision of passengers transfer and pipeline patrol within Cameroon and Chad. This contract is operated by CHL’s subsidiary, Caverton Aviation Cameroon (CAC), which was set up for the purpose of this contract and also to fill the gap in the market for aviation service providers in Cameroon CAC maintains a hangar facility located in Zone Aviation Legere, Ancien Aeroport, Douala which is the base of its operations.

The company carries out its aircraft maintenance, flight following and passenger processing from the facility. The company is also able to provide tailor-made aviation logistics solutions to its clients in order to fulfil their requirements with safety always at the forefront of its operations. www.caverton-helicopters.com

Chad/Cameroon – Doba Basin

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inspired Your weekly digest of business news and views

www.bus-ex.com We conceive, we study, we counsel and we achieve.

E.F EYENGA & Fils SARL • Civil engineering • Equipment maintenance • Area Monitoring • Equipment and material supplying • Trade Telephone: 00237 33191973 Email: eyengaetfils@yahoo.fr www.eyengaetfils.com

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pipeline system then transports Chad’s oil to the Marine Terminal located offshore from the seaside town of Kribi. Although Cameroon has no ownership share of Chad’s oil, it does have an ownership share in the pipeline system.

As highlighted by this particular project, and indeed numerous others throughout the world, ExxonMobil and all of the companyies that it works alongside share a commitment to investing in the countries in which it operates. In Chad and Cameroon, ExxonMobil have spearheaded and supported a variety of initiatives, one of which is the Economic Empowerment of Women Entrepreneurs.

This program provided microcredit funding and training for more than 80 traditional women’s cooperatives in the oilfield area, thus increasing the incomes of 1,600 women in the cooperatives by an average of 75 percent.

COTCO

Community development

â&#x20AC;&#x153;ExxonMobil and all of the companies that it works alongside share a commitment to investing in the countries in which it operatesâ&#x20AC;?

Major malaria prevention and treatment programs remain in place in Chad and Cameroon, with millions in funding from the ExxonMobil Foundation. During the construction phase of the project alone, the Roll Back Malaria program distributed nearly 75,000 anti-mosquito bed nets in partnership with the World Health Organization and the health ministries of Chad and Cameroon.

Meanwhile, project funding, along with contractor donations and community compensation micro development projects,

has enabled the construction of 130 community schools, as well as 95 water wells to provide safe drinking water in villages.

COTCO

75039-2298 info@exxonmobil.com @exxonmobil www.exxonmobil.com

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Kenya Port

the transpo

Mombasa, on the Indian Ocean coast of Kenya, has long pl run by the Kenya Ports Authority (KPA) it is expanding fast, words by

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John Oâ&#x20AC;&#x2122;Hanlon

ts Authority

ortation hub

layed a key role as a major port on the east coast of Africa: but is set to be eclipsed by a megaport on the island of Lamu research by

Stuart Platt BE Weekly [ Issue 86 ]

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n the past the port has been controlled by the Portuguese, the sultan of Zanzibar, and the British. Today, Kenya Ports Authority (KPA), a state-run enterprise, is responsible for the port. The city of Mombasa, its port and the facilities around it, as well as the railway that runs from the coast to Rwanda Uganda and Burundi are important to the economy of the whole of East Africa. Transit trade to these countries, the DRC, Tanzania and South Sudan accounts for 30 percent of the port’s throughput and this proportion is growing by up to ten percent a year. Mombasa is Kenya’s only international sea port.

The port has grown rapidly in recent years as a transshipment node for fuel and containers.

KPA aims to increase its container capacity to 1 million twenty foot equivalent units (teu). This means that ships with a deeper draught will be entering the port. To accommodate them, it was necessary to widen the access channel and the turning basin, deepen some landing stages along the quays, and build a new container terminal. The work started in June 2011. The existing channel was deepened at nine different points and around 6.5 million cubic metres of material dredged up by the contractor Van Oord used to construct the container terminal, thought to be the only berth on the east coast of Africa to be built on reclaimed land.

The project was successfully completed in April 2012, and container capacity increased

I

“The new project will complement the recently launched berth number 19 and the general growth in volumes of cargo arriving at the port”

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Rubber tyred gantry crane

Kenya Ports Authority

“The Lamu megaport is one of our major projects this year” by 250,000 teu to a nominal 800,000, though in fact the total amount handled is already more like 900,000 a year thanks to careful planning and the use of off-port container freight stations. With the completion of Berth 19 last year the expanded container terminal can now handle three 250 metrelong panamax vessels at the same time. To cope with these, the new terminal has been equipped with three ship to shore gantry cranes, eight new reach stackers and 27 terminal tractors. It has 120 reefer hookups.

Now a second container terminal is being planned for the port as a further extension of Mombasa’s capacity. “The new project will complement the recently launched berth number 19 and the general growth in volumes of cargo arriving at the port,” said KPA managing director Gichiri Ndua. This is a major capital project, with funding provided through Japan International Cooperation Agency (JICA), and the work is being carried out by Toyo Construction Ltd, also of Japan.

It will be completed in stages, with three new berths providing a total 900 metres of space, at an alongside depth of 15 metres. The first phase is scheduled for completion by 2016 comprising Berth 21, 320 metres in length, a side berth 20 with 11 metres draught. Berth 21 will have the capacity to handle 450,000 teu, with two ship to shore cranes and four rubbertyred gantry (RTG) cranes supported by a 50 hectare stacking yard.

The second and third phases are due to be built concurrently and delivered by 2019, adding two further berths (21 and 22, with lengths of 320 and 350 metres respectively).

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Your preferred Logistics Partner Mitchell Cotts offers total logistics solutions for the movement of goods in and out of East and Central Africa and, through our network of selected international business partners, co-ordinates movement of goods from any origin to any destination.

Mitchell Cotts services specifically include: • Container Freight Station (CFS) • Negotiating, arranging and fully co-ordinating shipments (whether by sea, air, road, or rail) • Customs and Excise Clearance • Warehousing - including specialist facilities like bonded warehouses • Collateral Management • Packing and Removals - domestic and corporate relocation • Insurance for all aspect of the movement and storage of goods • Advice and information on various relevant legislation, tariff schedules and customs facilities www.mitchellcotts.co.ke

Kenya Ports Authority

These will be equipped with some eight ship to shore cranes and 20 RTGs and with a further 50 hectare stacking area. Once these facilities are in place the Port of Mombasa will be able to handle a throughput of 2.5 million teu per annum.

The emphasis on container development reflects the growing global shift from bulk cargo and breakdown goods to container traffic, and the huge investments being made around the world to keep up with it. Container throughput already accounts for more than 40 percent of the tonnage that passes though Mombasa, and the local infrastructure has struggled to cope. However that will all change following the completion of these projects, at least as far as the port itself is concerned. Meanwhile the port authorities have shown they can play a good game with a poor hand. Despite constraints the port has improved its productivity significantly over recent years, recording 22 crane moves per hour and removing many bottlenecks. Waiting time for vessels is now down to internationally acceptable standards, generally less than two days. Though transshipment still only accounts for about one percent of total traffic delaying the establishment of Mombasa as a transport hub for the Indian Ocean, the aim following commissioning of the new container terminal in 2016 is precisely that. Mombasa is ideally positioned to service the many smaller ports of the Seychelles, Mauritius, Madagascar or Zanzibar, which can no longer berth the large container ships now coming into service.

“Despite constraints the port has improved its productivity significantly over recent years”

Mitchell Cotts With a strong regional presence, committed team and proven expertise, Mitchell Cotts has remained top of its game in the provision of Logistics services in the Freight Industry.

The Company’s head office in Mombasa is located in Kibarani very close to the port.

The Nairobi office is located on Mombasa road, past the turn off into JKIA and opposite Syokimau railway station. The Airfreight Division is at the Jomo Kenyatta International Airport Freight Terminal. To facilitate Kenya - Uganda cross-border trade, we have a hub on the border town of Malaba.

Our services: Dry port operations (CFS), Road, air and sea freight, value add warehousing and many more. www.mitchellcotts.co.ke

Crane operator

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But for mainland Africa it’s no good having an international standard port facility if the hinterland infrastructure that supports it is lacking. In November 2013, Kenya’s president Uhuru Kenyatta laid the foundation stone for the construction of a new standard gauge railway line that will connect Mombasa with the capital Nairobi. “The project will define my legacy as president of Kenya,” Kenyatta said. “What we are doing here today will most definitely transform ... the whole eastern African region,” The standard gauge railway is planned to run between Mombasa and Malaba near the Uganda border and thence to other major east African cities such as Kampala in Uganda, Kigali in Rwanda and Juba in South

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[ Issue 86 ] BE Weekly

Sudan. With this, the Kenyan government is hoping to strengthen ties between those countries through the growth of trade.

Mombasa is in rivalry with the smaller but also rapidly expanding port of Dar es Salaam in Tanzania, though the latter tends to be looked to by the landlocked countries of Malawi, Zimbabwe and Zambia. KPA however has the great advantage of having been established over many decades and enjoying rapid growth in Kenya itself and benefiting fom international investment in its neighbours, notably Uganda and South Sudan. Kenya’s $25.5 billion Lamu Port and New Transport Corridor Development to Southern Sudan and Ethiopia (LAPSSET)

Kenya Ports Authority

MSC container vessel docked at the port

could become the country’s biggest ever civil engineering project. It includes the construction of a 32-berth port, three international airports, and a 1,500 kilometre railway line. A new oil refinery, in nearby Bargoni, and an oil pipeline are also planned.

The pipeline would run to Kenya’s Eastern Province before splitting, with one branch running to South Sudan’s capital, Juba, and another through Moyale in the north to Addis Ababa. A 1,730km road network is also being planned.

To give an idea of the scale of this project for KPA, the Lamu megaport will be Africa’s largest port, three times the size of Mombasa.

Its 32 berths will give a total quay length of

ten kilometres, with alongside depths of up to 18 metres – enough to handle the largest post-panamax vessels. Construction of the first three berths will start in June under a $488 million contract awarded to China Communications Construction Company (CCCC). “The Lamu megaport is one of our major projects this year,” said Ndua.

Kenya Ports Authority

(041) 211 2999 customerfeedback@kpa.co.ke www.kpa.co.ke

BE Weekly [ Issue 86 ]

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