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Transport&Logistics ISSUE 4 | www.bus-ex.com

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a star

Shining bright How it is perfectly positioned to capitalise on future growth opportunities

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Business John O’Hanlon Editor johanlon@bus-ex.com Will Daynes Editor wdaynes@bus-ex.com Matt Johnson Art Director mjohnson@bus-ex.com Louise Culling Production Designer lculling@bus-ex.com Richard Turner Director of Sales rturner@bus-ex.com Vince Kielty Director of Editorial Research vkielty@bus-ex.com

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Thomas R. Cutler President & CEO of TR Cutler, Inc.

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issue no.4

10

16

10 supply chain

out of sight, not out of mind

Understanding your global supply chain to overcome challenges and ultimately create a competitive advantage.

16 supply chain

Reducing Customer Lead Time

22

How implementing lean technologies into your supply chain can reduce lead times from 15 days to less than two.

22 Operations

Picking Productivity Kept Simple

When it comes to choosing a warehouse picking solution, accuracy beats complexity every time Pick-to-Light systems are easier to learn too.

4 | BE Transport & Logistics

contents

28 38

Service provider: 28 Starlite Aviation Group A star shining bright

Starlite Aviation Group has grown into a global aviation business. Commercial Director, Dimmie de Milander discusses the strengths of the group and how it is perfectly positioned to capitalise on future growth opportunities.

38 KAA

AIRPORT ON THE MOVE

Keeping up with the economic growth in Kenya and the growing importance of its flagship Jomo Kenyatta International Airport (JKI) as a hub for the East Africa region.

48 Air Parts International Sales, Inc. Single source purchasing

GM Michael Peter Balwan, Jr. describes how the company has become a pioneer in the commercial aviation aftermarket.

56 Avis UAE

Total Transportation

48

Avis UAE is so much more than the leading car rental business in the Emirates, built on Avis core values while developing a business model tailor made for its market.

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issue no.4

64

Infrastructure: 64 AlpTransit Gotthard AG Crossing new frontiers

Chief Construction Officer, Marco Ceriani, discusses the creation of the New Rail Link through the Alps (NRLA), a project that has been dubbed ‘the construction of the century’.

76 Transcity JV Project BRISBANE DEBOTTLENECKED

76

The Legacy Way project being delivered by Transcity will help accommodate Australia’s most easterly city t o grow along with it.

86 RDA Zambia LINKing ZAMBIA

Juggling massive resources to deliver an ambitious road network that will release the landlocked nation.

98 Metro de Madrid

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METROPOLITAN METRO

Madrid boasts one of the largest metro networks in Europe, serving most of the capital city and a good part of the suburbs.

contents

110

110 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.

logistics: 120 DHL Global Forwarding – Sub Saharan Africa

Always moving forward

How the business is striving to become the first choice solutions provider for its customers and the wealth of opportunities Africa has to offer.

130 Super Star Forwarders (SSF) Forward thinking

The demand for transport and logistics services in East and Central Africa is in the process of outstripping supply. Discover how SSF is expanding to meet the needs of its multi-national corporate clients.

146 Berco – an Aramex Company Two giants unite

120

How over the course of two decades, a small, family-run business has been able to transform itself into a leading international logistics provider.

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issue no.4

Ports & Shipping: 158 Chantier Davie

More than shipbuilding

158

168

More than just Canada’s largest shipbuilder – more than any kind of shipbuilder: its ability to provide end-to-end turnkey solutions and its strategic location makes Davie an ideal partner for a range of industries.

168 PortMiami

Welcome to America

Easily accessible to Caribbean and Latin American markets, as well as those of Asia and Europe by way of the Panama Canal, it is easy to see why PortMiami has earned the nickname, the Cargo Gateway of the Americas.

176 LLX (Açu Superport Project) A gateway to the future

LLX is the driving force behind the development of the Açu Superport, one of Latin America’s most important investment projects in recent history.

176

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contents

194 204

194 Panama Canal Expansion Program

A global game changer

The expansion of the Panama Canal is the highest profile undertaking in all of Central America and one that is on course to change the world of maritime trade forever.

204 Gibraltar Port Authority

The gateway to the Mediterranean

The Gibraltar Port Authority has worked tirelessly to ensure that the Port of Gibraltar meets the needs of an everincreasing flow of shipping traffic.

212 Transnet Port Terminals (TPT) Supporting Southern Africa

212

Transnet Port Terminals (TPT) is playing a leading role in making the South African government’s export-led growth strategy a success.

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Out of sight not

As globalization increasingly becomes a re communication and understanding of th challenges and ultimately crea Words by

10 |

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Anne M

Supply chain

out of mind

eality, organizations need good visibility, heir extended supply chain to overcome ate a competitive advantage

Marie Kilkenny BE Transport & Logistics

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Supply chain

N

o matter how efficient your organizat ion, there will always be unplanned events that without co-operation across the supply chain, will negatively impact your business. The tsunami in Japan last year was an extreme example. Some organizations only became aware of their third or fourth tier suppliers and the impact they have on the business, because they were in the tsunami-affected area.

Global supply chains are multifaceted, they’re dynamic and it is essential organizations, wherever they are situated within the supply chain, consider and monitor contributing factors. National taxes, charges, laws and regulations all need consideration. Not to mention the impact of economic, political or market change - and of course natural disasters.

The geographic location of some countries also presents additional challenges. Take New Zealand, relatively isolated from the rest of the developed world, inbound and outbound shipping costs can be a significant factor, but it is the time it takes to get products to and from New Zealand which is the key issue.

In the world of lean, transportation time is waste. Moreover, long shipment times expose the supply chain to demand and

“A common problem I have seen in businesses across the world is their small size relative to their global supply chain�

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supply variability. Inventory is typically used to buffer the impact of any variability in supply or demand, but this inevitably increases working capital requirements.

These supply chain challenges can be better overcome not by increased stockholding, but by creating a more agile and efficient supply chain. The first step is to understand what the global supply chain you operate in looks like, end-to-end. Mapping or modeling the extended supply chain can help to recognise the relative size and influence of different entities within the supply chain, and identify the most influential customers and suppliers, as well as areas of greatest complexity and risk.

A major supermarket, for example, is likely to be an influential player. Even if they are several tiers away from your own business, you have to consider their impact on the supply chain, because it is too significant to ignore. Likewise, a supplier can be very influential, particularly if their product is in short supply, providing leverage for them to make demands on their customers.

A common problem I have seen in businesses across the world is their small size relative to their global supply chain. Those which are part of a global organization in some cases have little control over sourcing and product decisions, having to fall in line instead with Head Office decisions, made with a global rather than local perspective. It is particularly important in this instance to really understand your supply chain, so you have the opportunity to negotiate terms and conditions, or else develop products differently, so as not

“Once you have a good understanding of your supply chain, partnerships need to be formed with those which have the greatest impact on your business� to be constrained moving forwards.

Segmentation, for example, can be an effective way of satisfying individual product and service needs whilst maintaining economies of scale. And the strategy to customize or configure products locally may be one which can satisfy both global and local needs.

Once you have established a good understanding of your supply chain, partnerships need to be formed with those which have the greatest impact on your business, i.e. influential players and

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any weak links. Good communication is essential for this, and for ongoing understanding. I never cease to be amazed at the number of businesses which have very little dialogue with their supply chain partners, and as a result have very poor visibility of drivers behind customer demand and supplier costs.

Visibility is key, and the right processes have to be in place to allow this. Integrated Business Planning (advanced S&OP), a business management process for running the entire organization, not only

Supply chain

provides a 24-36 month rolling horizon, it directly links the corporate strategy and financial plans, and exerts control over the extended supply chain.

One global electrical components manufacturer we now work with, saw demand reduce globally by 35 percent in 60 days in 2008 as a result of the Global Financial Crisis (GFC). Unable to re-plan their supply chains as quickly as the change in demand, inventories soared to over $250 million, decimating profitability. Having come through this, they have now introduced an Integrated Business Planning process which enables them to model different supply chain scenarios, and they are now much better equipped to anticipate and react rapidly to ever-changing demand.

The events of the past few years – not only the GFC, but volcanic ash clouds, tsunamis, floods and catastrophic earthquakes – have made the need to optimize the global supply chain ever more pressing. Understanding your supply chain footprint, communicating effectively and forming strategic relationships throughout the extended supply chain is essential in overcoming the many and varied challenges of today to effectively meet customer demand in the most profitable way.

About the author Anne Marie Kilkenny, Partner at business improvement specialist, Oliver Wight. www.oliverwight-eame.com

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Supply chain

Reducing Customer Lead Time <<<<<<<<<<<<<<<<<<<<<<<<<

How implementing lean technologies into your supply chain can reduce lead times from 15 days to less than two Words by

Thomas R. Cutler

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T

he future of lean technologies indicates that supply chain solutions will be increasingly required to meet the demands of the marketplace. Collaborative Supply Portal (CSP) must manage raw material replenishment, Lean Factory Management (LFM) will manage shop-floor schedules, and Collaborative Demand Portal (CDP) will be required to service distribution centers, dealers and OEMs all focus on the execution side of the factory floor. Lean planning must cross-over to procurement as well in the form of a collaborative request for quote (RFQ) module.

RFQ technology allows buyers and suppliers to collaborate easily and effectively in a bidding process. The iterative process tracks and traces the bids in real time until a winning bid is converted into a purchase order. The collaborative Planning Module integrates planning data with execution and establishes a feedback loop.

It is all about leaning the supply chain.

In the past manufacturing was vertically integrated and the suppliers were located within a short radius. Manufacturing today is less integrated and the suppliers are global. Only through supplier collaboration, and real-time flow of order, shipment and receipt information can be controlled and automatically computed.

The result is the next important step of lean—kaizen, or continuous improvement.

As a manufacturing journalist it was a pleasure to interview Narayan Laksham, Ultriva founder and CEO. He founded the company 1999 with a vision of building an organization that develops customer driven solutions which guarantee high value, quick deployment, and measurable return on investment. Laksham has written articles on several lean topics including “When Push comes to Pull Kanban wins.”

He is also a co-inventor of the patent pending “Inventory Optimization Tool.”

This recent conversation revealed how much has changed in the supply chain during the intervening conversation, when first interviewed six years ago.

Manufacturing is more competitive than ever with shorter lead times, higher service levels, exploding numbers of finished good SKUs (stock keeping units) and thinning margins. Laksham points out, “The focus of leaning in manufacturing was concentrated on streamlining the factory floor, alignment of production lines, optimization of space, and standardizing of operating procedures.

One key area which was not touched was the supply chain material replenishment.

Given that purchase parts could be as high as 60 percent of manufacturing costs, applying lean methodologies to this process is critical. As excess inventory eats the margins, part shortages reduce customer service levels and result in lost revenues.”

At an APICS (Association for Operations Management) meeting in Van Nuys,

“Manufacturing is more competitive than ever with shorter lead times, higher service levels, exploding numbers of finished good SKUs and thinning margins” 18 |

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Supply chain

CA, late last fall, Nicole Smith of Zurn SKUs are being manufactured using this Wilkins (a Rexnord Company) shared advanced process.” the company’s experience of reducing After the initial process, Rexnord customer lead time from fifteen days implemented the supplier kanban modules to less than two days. She also shared across several plants in the US, to ensure how the company was able to reduce the that the raw materials were available to raw material and WIP (work in process) meet demand. More than 22,000 parts inventory by twenty percent. are being replenished by 178 suppliers Rexnord is a diversified multi-platform across these plants. Finally Rexnord industrial company that manufactures implemented internal kanban to set up and markets power transmission and a pull system from its final assembly to water management products. Revenue upstream work centers. last year was $1.3 billion and the firm In an effort to better understand why employs nearly 7,000 people. supply chain managers are frequently Ultriva, based in Cupertino, CA, broadsided with wrong size inventory, implemented a demand driven Laksham explained, “The inability manufacturing model by providing full of current supply chain management visibility, scheduling, and sequencing systems to support true collaboration of production of customer orders at the and execution between manufacturers cell level for one of the Rexnord plant in and their supply chain partners result Indianapolis. Previously it took ten days in supplier whiplash, poor delivery before the order reached the factory floor; performance, and lost revenue.” orders were scheduled on a weekly basis, The mission of providing greater causing an overall lead time of fifteen days.

L a k s h a m commented about the • RYG dashboard indicators show inventory health Rexnord situation, • Built-in workflow & noting, “We facilitated business rules engine the orders to be • Complete order tracking directly dropped at the manufacturing cells within 15 minutes of receipt. If the order was received before 2 pm it was manufactured and shipped on the same • Automated email alerts based on pre-set business rules day; if after 2 pm, it • Daily/monthly business proces routines was shipped the next • Single version of the truth - buyers day. Currently over & suppliers see the same view from their perspective 30,000 finished goods

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transparency and visibility between manufacturers and supply chain partners allows manufacturing customers to experience an average 35 percent increase in inventory velocity. The across-the-board improvements in employee productivity and supply chain decision making has delivered even greater value through ultraresponsive, demand-driven supply chains.

Scott Harvey, vice president of Operations at CareFusion, another enthusiastic user of the technology remarked, “The cloud-based platform has a low barrier to entry and allows for an incredibly high level of standardization across all of our suppliers, which made it the obvious solution. As a medical device company working in a highly regulated industry, it is imperative that we maintain a high level of transparency and accountability.”

During the extensive interview with Laksham, he concluded that the shift for most manufacturing companies is becoming demand responsive. “Returning

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“The shift for most manufacturing companies is becoming demand responsive” to a more basic question of the objective of supply chain management is vital. The goal is to source, make and deliver the product from the point of origin to the point of consumption in the least amount of time at the lowest cost. Given that goal, the two most important attributes of supply chain management are responsiveness to the velocity of product flow, and the ability to move products quickly and with agility. These attributes enable the transition from push-based replenishment to pull-based replenishment. To focus on these attributes, it is vital to look toward the customer, the customer’s customer, or the end-user of the product.”

Since few companies can source material and produce all products in the volume required to meet a day’s production, the solution lies in consumption-based replenishment.

Consumption-based replenishment has its roots in lean manufacturing and “kanban” replenishment—a Japanese term for a card used to signal the need for inventory replenishment. Kanban now describes the “pull” method of keeping production lines optimally stocked with parts at the exact time and quantity needed. A simple analogy: Think of a carton of milk in the supermarket—as one carton is pulled off the shelf, another carton slides into its place, immediately restocking the inventory.

Supply chain

The cloud-based supply chain solutions streamline the production schedules with customer demand and synchronize the supply with shop-floor consumption. It uses the consumption-driven replenishment model to establish a true pull process across the value chain. The primary goal of the system is to right-size the inventory whether it is finished goods, work in process, or raw materials. Using a unique supply chain loop based architecture, manufacturing companies can establish real-time collaboration with their customers and suppliers. This collaboration allows manufacturers to carry the right mix of inventory at the distribution center, shorten the lead time to their customers and improve the service levels through elimination of part shortages.

The kanban principle can be effectively implemented with the use of technology, as consumption-based replenishment has evolved from its simple card-based roots into highly sophisticated software applications. These applications can help manufacturers determine the most optimal inventory levels for operations, and can rapidly recalculate efficient replenishment trigger points as demand

â&#x20AC;&#x153;The cloud-based supply chain solutions streamline the production schedules with customer demand and synchronize the supply with shop-floor consumptionâ&#x20AC;? varies over time. By taking a customercentric approach to daily operations, manufacturers focus investments on enabling operations to build only what is needed to replenish what the customer has ordered. This paradigm shift results in companies embracing a goal of delivering the products customers want, when they want them, and in the quantities they want.

Now, and for the next decade, efforts to eliminate waste will start by applying lean principles to supplier and customer collaboration. This combination will result in sensing demand changes and synchronizing supply resulting in rightsizing of inventory across the respective transaction points.

About the author Thomas R. Cutler is the President & CEO of Fort Lauderdale, Florida-based, TR Cutler, Inc., (www.trcutlerinc.com). Cutler is the founder of the Manufacturing Media Consortium including more than 4,000 journalists, editors, and economists writing about trends in manufacturing, industry, material handling, and process improvement. Cutler is a member of the Society of Professional Journalists, Online News Association, American Society of Business Publication Editors, and Committee of Concerned Journalists, as well as author of more than 500 feature articles annually regarding the manufacturing sector. Cutler is the most published freelance industrial journalist worldwide and can be contacted at: trcutler@trcutlerinc.com

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Picking productivi

When it comes to choosing a wareho complexity every time - Pick-to-Lig Words by

22 |

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Thom

Operations

ity Kept Simple

ouse picking solution, accuracy beats ght systems are easier to learn too

mas R. Cutler BE Transport & Logistics

| 23

I

dentify the characteristics most needed for an effective picking solution may seem obvious.

Indeed high visibility, robust order pick displays, flexible mounting method allowing the system to easily adapt/ grow with warehousing operation and simple intuitive software must be part of the mix. Obviously highly accurate order assembly, orders handled by barcode scanning or manual selection and picking data interfaced with ERP/ WMS for real-time visibility are also must-have requirements.

These characteristics for picking solutions are a great starting point for finding a cost-effective and efficient solution. More is not better in the picking world. All the bells and whistles of costly complex solutions completely miss the actual value, picking the right product, at the right place, at the right time.

Very large multi-facility warehouses implement very costly WMS (warehouse management systems) often customized to their particular operation. More than 90% of all distribution center locations are single operations with less than 100,000 square feet. They cannot justify high-end multi-million dollar technology solutions to enhance warehouse productivity, accuracy, and exploding SKUs (stock keeping unit).

The need is just as great among these smaller distribution centers and single warehouse operators; too often these executives attempt to patch together a best-of-breed picking solution at an affordable price with mixed results.

Antonio Rodrigues, a senior manager at Pcdata, based in East Granby,

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Operations

“One size fits all certainly does not apply to getting the highest productivity out of a warehouse operation.

Different technologies are better-suited depending on the SKUs order frequency and value.”

Connecticut, suggested, “One size fits all certainly does not apply to getting the highest productivity out of a warehouse operation. Different technologies are better-suited depending on the SKUs order frequency and value.”

Analysis of most warehouse orders will show a Pareto curve, where a small amount of the SKUs being processed account for a large percentage of the orders. These fast-moving items are the “A” parts. Any small amount of efficiency gains in picking these “A” parts will have a relatively large impact on the overall productivity of the entire operation.

Too often vendors of picking products are wedded to (and clearly invested in selling) just their solution, whether it is (or is not) the right fit for the distribution center, 3PL (third party logistics), or warehouse. Comparing pick technologies, side by side, often reveals that Pick-to-Light solutions have a clear edge over other solutions when measuring picking accuracy. The light indicators make it difficult to pick from the wrong location, or the incorrect amount, when the light is both the pick instruction and location indicator.

There is also a clear cost-advantage

Units ordered

Units ordered/SKUs

SKUs A-parts (fast movers)

B-parts

C- and D-parts

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“Replacing a paper-based picking process with a single technology helps deliver significant improvements with efficiency and accuracy” and scalability to Pick-to-Light solutions according to Rodrigues who suggested, “The system’s cost is determined by the number of SKUs, as a display is required for each SKU picked. With voice or RF scanning equipment, the variable cost is determined by the number of operators picking.”

Better than Paper Replacing a paper-based picking process with a single technology helps deliver significant improvements with efficiency and accuracy. However to optimize warehouse productivity, deploying hybrid solutions in which Pick-to-Light is used for fast moving products, delivers the best possible operational solution.

Too many vendors have ignored the single warehousing operation because there was no reasonable ROI (return-oninvestment) for the proposed technology.

Investigating PickStar, Pcdata’s next generation Pick-to-Light solution, the company has designed an installation model with minimal operational impact; bottom-line ease of use and operational simplicity was the company focus will provided a rapid ROI. Most of the 550 systems installed worldwide in 30 countries (100 in North America) required nothing more than basic user involvement due to the intuitive GUI (graphical user interface.) By observing employees at full capability in days, rather than months, the cost-justification becomes clear (especially without the need for IT engineering staff.)

Whse Technology Comparison Chart Labor

$/SKU

Cost

Errors

Paper

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100% RF/Voice

Hybrid w P-t-L

Operations

Pick Strategy by Order Volume Picks/ manhr

0

100

200

300

400

A

500

600

700

800

900

1000

1100

Fully Automated Picking Solutions

A,B

Pick-to-Light Pick-to-Light

A,B,C C,D

Paper Picking

C,D

RF Picking Pallet Racking / Static Locations

Flowracks / Conveyors

Exponential Growth of SKUs With exponential growth in SKUs, the permutations of one product can be complex.

That variety and variability does not need to translate into the design, deployment, and maintenance of an effective picking solution. Rodrigues noted, â&#x20AC;&#x153;It is best when the hardware components are modular and user replaceable, minimizing maintenance and support costs. We have seen that in the right environment these Pick-toLight systems will outperform typical voice, RF scanning or paper based picking and order assembly processes.â&#x20AC;?

The industry sectors that are often

Automatic Transport Systems, Carrousels, Mini Loads, Robots, Sorters

most impacted by these simple, ready-toinstall, out-of-the box solutions, are fast moving item picks at any warehouse.

Assembly line processes are complex, particularly in food logistics, e-commerce business-to-consumer organizations, spare parts assemblies, and a wide variety of consumer goods distribution centers.

Low IT requirements, does not mean ineffective picking solutions.

Too many picking solutions require high powered servers or complex network infrastructure. Running from a standard Windows platform, allows the existing IT landscape to be utilized.

About the author Thomas R. Cutler is the President & CEO of Fort Lauderdale, Florida-based, TR Cutler, Inc., (www.trcutlerinc.com). Cutler is the founder of the Manufacturing Media Consortium including more than 4000 journalists, editors, and economists writing about trends in manufacturing, industry, material handling, and process improvement. Cutler is a member of the Society of Professional Journalists, Online News Association, American Society of Business Publication Editors, and Committee of Concerned Journalists, as well as author of more than 500 feature articles annually regarding the manufacturing sector. Cutler is the most published freelance industrial journalist worldwide and can be contacted at: trcutler@trcutlerinc.com

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A star shin

Commercial Director, Dimmie de Milander Group and how it is perfectly positioned to

written by: Will Daynes |

28 | BE Transport & Logistics

Starlite Aviation Group

ning bright

discusses the strengths of Starlite Aviation o capitalise on future growth opportunities

research by: Jeff Abbott

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T

he Africa of the 21st century is often highlighted by the vast metropolitan cities that have been building up steadily to become centres of economic prosperity, yet the continents land is still home to a vast expanse of frontier land. It is on this land, particularly along coastal areas, that many of today’s most exciting oil and gas finds are being made. However, when it comes to operating in such areas, where logistical infrastructure is sometimes non-existent, it often calls for companies to rely on expert advice and local knowledge. It is here where companies like Starlite Aviation come into play.

Established in South Africa in 1999, the group has undergone an extended period of growth to become a multi-faceted aviation business offering a range of helicopter services on a worldwide basis. Such services include relief contract work, oil and gas, passenger and cargo transport, helicopter sales and charter, maintenance and pilot training.

“We began life providing purely disaster relief and support services,” explains Commercial Director, Dimmie de Milander.

“From there we expanded into supporting various non-governmental organisations before taking on several contracts for our aircraft on a longer term basis. Through a combination of this contract work and the income that we derive from our training school we were able to begin developing our ability to provide support to customers operating in the offshore oil and gas industry.”

The capital raised from its long term contracts also allowed Starlite to invest in its fleet of aircraft. “Every time we tie up an

30 | BE Transport & Logistics

Starlite Aviation Group

aircraft to a contact we endeavour to use the money from that to make another aircraft ready to be put into service,” de Milander continues. “In many ways this keeps us one step ahead of the market as it often means we have aircraft ready to take on work as it becomes available.”

Starlite’s fleet today includes aircraft from

Aerospatiale, Robinson, Bell, Sikorsky and Eurocopter. “Traditionally,” de Milander states, “we have leant towards the use of Eurocopter aircraft, however what we previously possessed was a slightly older, ageing fleet. Whereas the costs associated with upgrading to a more modern aircraft would previously have made such a possibility

“The group has undergone a period of growth to become a multi-faceted aviation business offering a range of services on a worldwide basis” 32 | BE Transport & Logistics

Starlite Aviation Group

Starlite currently operates 11 Puma helicopters

challenging for us, the fact that now we have virtually all of our aircraft tied into some form of contract we have the capital available to us to source new models.”

Starlite is proposing a major expansion of its activities over the next few years, which will place increased pressure on the capacity of its existing fleet. Accordingly it has embarked on a fleet renewal and acquisition programme to augment existing aircraft, and cater for a continued shift in demand for its aircraft to newer technology and heavier aircraft types.

Starlite recently signed an agreement to become the launch customer for Eurocopter’s new AS332 C1e aircraft. This new helicopter

is ideally suited to the medium-heavy utility market but could also be used to support oil and gas work. The AS332 C1e helicopter is the latest version of the popular Eurocopter Super Puma medium-weight helicopter.

While Starlite isn’t the largest of aviation businesses, de Milander is keen to point out that there is one particular characteristic of the group that allows it to compete with almost anyone in the world when it comes to supplying aircraft, and that is that it has proven countless times that it can operate along supply lines in some of the most difficult, challenging and unpredictable parts of the world.

“Whether our customers operate in the fields of oil and gas or high-end mining,

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or are involved in non-government agency programmes, they almost always eventually end up working in countries with almost no aviation support infrastructure present.

We have seen this in our work in places like Afghanistan, Pakistan, Kosovo, Myanmar, South Sudan and Mali, to name a few locations, and it has always been our focus to be able to provide these clients with safe, reliable support in these regions.”

Whereas the larger corporate helicopter suppliers tend to have a much more risk adverse approach to business, Starlite has always been found to be prepared to judge each situation and scenario by its individual merits before seeing how it can be of service to a client.

That is certainly not to suggest that safety isn’t the most paramount of issues for Starlite, in fact quite the contrary. “Safety has been,

“Today the group’s talent for delivering services in some of the most remote parts of the world, let alone Africa, continues to shine through”

Pilots carrying out preflight checks

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Starlite Aviation Group

The Bell 412 reliably performs in the most extreme climates on the planet every day

is and always will be the “It was during the course of one of its tasks that the most important aspect of aircraft in question suffered our business,” de Milander an engine fault in a location enthuses. “Through the approximately ten kilometres operations of our training The year that Starlite from the nearest civilisation,” school we are able to was established in handpick the very best pilots he recalls. “In response to this South Africa for employment and these we organised for an engine to be sent from America to are invariably those with a that location, the necessary huge degree of experience, often gained through military service.” changes were then made and after just six The skill and capabilities of Starlite’s pilots days the aircraft was back flying again. and crew have been displayed countless times Understandably the client in question was in its lifetime. One particular example of this very pleased at the short amount of time that sticks out in de Milander’s mind involved required to remedy the situation and Sikorsky on of the group’s Sikorsky S92 aircraft which themselves stated that they doubted there are was providing offshore support for a client many other companies out there that could based off Namibia’s infamous Skeleton Coast. have handled such an issue so quickly.”

1999

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The Bell 212 Twin Huey on Jasper deck

Starlite Aviation Group Today the group’s talent for delivering services in some of the most remote parts of the world, let alone Africa, continues to shine through. Again in Namibia Starlite aircraft can be found operating in Lüderitz, along the south-western coast of the country. It is here, in one of the least hospitable coasts in all of Africa, that it has managed to retain a 99 percent dispatch rate of on-time deliveries.

With offshore oil and gas activity increasing at a considerable rate along both the western and eastern coasts of Africa it is significant that those within Starlite are confident that it is well positioned to provide the types of services that will be in even greater demand going forward.

“I believe that when you consider the growth of the oil and gas industry, our own position in that market and the fact that we have now proven capable of funding the addition of new aircraft into our fleet, it becomes clear that our primary mission need to be to continue delivering above expectations,” de Milander says. “There is such huge potential throughout the continent right now and it is our aim to be at the centre of that, capitalising on the opportunities that will arise. In targeting this we have been forming a number of strategic relationships in key locations such as Namibia, Tanzania, Kenya and Ghana, and in doing so we are making sure that Starlite will be wherever its clients need us to be in the years to come.”

For more information about Starlite Aviation Group visit: www.starliteaviation.com

BE Transport & Logistics | 37

38 | BE Transport & Logistics

KAA

AIRPORT ON THE MOVE Kenya Airports Authority (KAA) has to run to keep up with the economic growth in the country and the growing importance of its flagship Jomo Kenyatta International Airport (JKI) as a hub for the East Africa region

written by: john oâ&#x20AC;&#x2122;hanlon research by: robert hodgson

BE Transport & Logistics | 39

KAA

A

s with any country’s main airport JKI is the gateway to the country, and the people who fly in and out from all over the world, fairly or not, will judge Kenya by their first impression, gained as they struggle through the baggage reclaim and immigration checks. The first Kenyans they meet will be the airport staff.

What greater PR opportunity could there be for a country and its people?

The responsibility for investing in the airports lies with KAA, the autonomous government body founded in 1991 to succeed the Aerodromes Department, then part of the Ministry of Transport and Communications. But responsibility for the day-to-day implementation of policy on the ground devolves upon the airport managers, especially the General Manager of JKI. Edward Kobuthi was appointed to this post in December 2011, having previously been General Manager at Kenya Airways, one of the most successful airlines in Africa. Moving across from the role of the airport’s principal client to that of service provider gave him a unique insight into the business, he says. “I could hardly fail to understand the questions I had been asking as a customer!” But in addition to that he had an unusual background for an administrator, having been trained in process engineering. His experience in manufacturing with its emphasis on continuous improvement, efficiency and lean working was just what the airport needed, though it did present him with some initial challenges. Notable among these was trying to instil a mindset of effective working among staff used to the laid back

BE Transport & Logistics | 41

RwandAir, the national airline of the Republic of Rwanda, the airline has earned the proud moniker of â&#x20AC;&#x153;the Fastest Growing Airline in Africaâ&#x20AC;?.

Today the airline operates a fleet composed of four Boeing 737 NG series, two CRJ-900 NextGen and one Dash-8 and serves all major cities in the EAC (East African Community), three cities in western Africa, Lagos, Libreville and Brazzaville, Johannesburg in South Africa, and Dubai the only destination out of the continent.

Changes are noticeable today on RwandAir side with the

unveiling of our new brand image. On April 12, 2013 the airline will take delivery of the first of two Boeing 737-700NG leased from German airline TUIFly to replace the two retiring Boeing 737-500. And in June we will launch Accra in Ghana and Douala in Cameroon, followed up in July by Juba in South-Sudan to be served with weekly flights ranging from 3 to 5. In December we will also be acquiring a Bombardier Q400 from factory to replace the current leased Dash-8 100. By the end of 2013, we expect to exceed half a million passengers as stated earlier with a fleet of seven beautifully chosen new generation aircraft.

KAA

Construction taking place

attitudes prevalent in the civil services. circular structure with the three sections While much remains to be done, things have grouped around a central space recalling improved right across the board in the 15 months a traditional boma. Having been built in since his appointment. One of the first things 1978, it is feeling its age and needs frequent he did was to call together his management repair. What it really needed was a thorough team and set targets in all departments, his aim overhaul, but a renovation programme that to meet the high expectations of the airport was supposed to start in 2007 was put on users. â&#x20AC;&#x153;This is no longer a local airport so they hold, becoming part of the project to build a expect a level of service and brand new fourth terminal.

Meanwhile maintenance an experience comparable has been a matter of patch to what they would receive and make do, Kobuthi at Heathrow or Schiphol. Of laments â&#x20AC;&#x201C; understandably course delivering that in our he is impatient to see the constrained facilities is not easy to do, but that is what our expansion project completed. improvements all aim to do.â&#x20AC;?

The new Terminal 4 Projected passengers The existing terminal currently under construction through JKI in 2016 complex is an iconic will complete the circle. It is

15

million

BE Transport & Logistics | 43

“I made it a priority to see that the power supply, especially to the airfield lighting, was robust” a fully self-contained facility with a 23,000 square metre footprint, handling international arrivals and departures and separating them from domestic transit. It will handle 1,500 passengers an hour, with the check-in and bus terminal on the ground floor, seven departure gates on the first floor and arrivals above that.

The three storey parking garage for 1,500 vehicles that forms part of Terminal 4 is already nearing completion. To give an idea of its scale, the entire off-street parking provision for Nairobi only amounts to 6,000 places – its presence more than makes up for the open

44 | BE Transport & Logistics

air parking that had to be sacrificed to the new terminal. Although it has been claimed that Terminal 4 will up the annual passenger throughput of the airport to nine million from the original three terminal’s design capacity of 2.5 million, it is actually designed to cope with an extra 2.5 million. When it is considered that around six million passengers currently pass through the airport, and it is indeed expected that nine million will be using it by next year, the scale of JKI’s under-capacity becomes clear.

Nevertheless Edward Kobuthi has not been content to wait. As soon as he came in he set

KAA

in process a programme of across the board improvement that owed much to industrial lean practices. Despite the constrictions of the facility the results have been impressive and are reflected in the ratings achieved in JKI’s quarterly Airports Council International (ACI) audits. “Every single parameter showed improvement over the last year,” he says.

Putting in free Wi-fi access in the waiting areas gained a huge 16 percentage points improvement, while air-conditioning the departure lounge won a similar hike in ratings. Other areas scored markedly higher, including ground transportation, availability of parking, courtesy of staff and reduced waiting times at security; trolley availability and signage that makes it easier for passengers to find their way about.

No ACI category failed to show an improvement. And this comes after some much

larger issues had been tackled. Failure in the baggage conveyor system had been frequently so they were thoroughly rehabilitated. More seriously, just before Kobuthi took up the reins the entire airport had been blacked out in a power cut. “I made it a priority to see that didn’t happen again and to see the power supply, especially to the airfield lighting, was robust. We now have generators powering two separate loops to the airside circuits – if one has a problem the other cuts in.”

Terminal 4 is behind its original schedule but should be fully commissioned by the end of the year, ready for the President to open it.

Meanwhile work will commence on a brand new terminal building, quite separate from the original complex. The new ‘Greenfield’ terminal will solve JKI’s capacity issues for a long time to come, equipping it to meet a projected demand

BE Transport & Logistics | 45

KAA took delivery of a dreamliner - Boeing 787 at the Jomo Kenyatta International Airport

KAA of 15 million passengers a year after 2016.

The design capacity of the new $650 million terminal is actually 20 million passengers a year.

Designed by architects Pascal & Watson and supervised by consultants Louis Berger Group, a contract has been concluded with Anhui Construction Company of China and work is due to start in May of this year. The project will involve the construction of a new terminal building with a total floor area of 178,000 square metres on four levels, 45 associated aircraft stands, linking taxiways, with access roads and new vehicle parking areas.

Strategically situated at the interface between east and west, north and south, JKI is ideally placed to become Africa’s main international hub for passenger services. It has already gained that position in terms of cargo, having overtaken both Cairo and Johannesburg in terms of tonnage. It now handles over 300 million kilogrammes of cargo a year and is growing at an annual rate of ten percent. In a separate contract, work will start this year on a second runway at the airport. It should take a little under two years to build. The new 5.5 kilometre runway will be able to take the airbus A380 and thus open up the airport to direct long haul flights to destinations such as New York, carrying up to 32 tonnes. Edward Kobuthi can’t wait: “Once all these projects are complete Nairobi will finally take its rightful place alongside the top rank passenger and freight airports in the world.”

For more information about KAA visit: www.kaa.go.ke

BE Transport & Logistics | 47

48 | BE Transport & Logistics

Air Parts International Sales, Inc.

Single source purchasing General manager Michael Peter Balwan, Jr. describes how the company has become a pioneer in the commercial aviation aftermarket

written by: Kenneth Connor research by: James Boyle

BE Transport & Logistics | 49

Air Parts International Sales, Inc.

E

ighty years ago, back in 1932, “I joined the business in 1961. I was Air Parts International Sales sweeping floors in the warehouse while I Inc. started serving the needs of was still in high school. I eventually became commercial aviation customers a buyer, then a salesman and eventually worldwide by providing a complete took over as general manager. API has been range of aircraft materials, services support a part of my life for so long now that I surely and ground based equipment. “Not every must have Shell Aviation lubricants coursing business can say they’ve been around that through my veins,” he chuckles. long,” says API General Manager, Michael “The success that we enjoy today, like back Peter Balwan, Jr. in 1932, is built on the fundamental principle “By the time World War II broke out of providing personalized and comprehensive the company had moved from Glendale to services and support to our commercial Burbank and in order to support the war aviation customers. We do everything possible effort, we became an aviation overhaul to assist them. We focus on our customer’s buyers and material planners shop. We’d call it an MRO who depend on our speed (maintenance, repair and overhaul) facility today.” and efficiency to keep their After WWII wound down, fleets flying. Airplanes API went back to being a only make money when domestic aviation aftermarket they’re flying; they’re very Air Parts International supplier of materials and expensive machines to have established sitting on the ground. services. “In 1958 my “During the 80 years API father, Michael Balwan Sr., purchased the firm and began changing has been in business, we have steadily grown its focus to target and service international into one of the most experienced and stable airline customers. His first international suppliers in the industry. Based on our record, customer was, Ethiopian Airlines. Back in our customers can rest assured that we will that day, we could only communicate with be here to serve them today, tomorrow, and them by ‘Telex’ an extinct word now, or via in the years ahead,” says Balwan.

“Our customers find that one of the a phone patch hook-up through Rome, Italy,” greatest advantages in dealing with us is the says a smiling Balwan.

“For 20 years, Ethiopian was our largest convenience of single source purchasing. With international account. Over the years we API, there is no need to waste time and money added Air France, Indian Airlines, Malaysian searching for a variety of suppliers. Whether Airlines, TAP Portugal, HAECO in Hong your list includes an aircraft tow tractor, a Kong, Air Zimbabwe, TAAG Angola and complete jet engine or any other commercial many others as international clients. We’re aviation components, you can let our expert still doing that today. buyers do the sourcing for you,” he explains.

1932

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Some ThingS Were DifferenT in 1932…

But some things never change. Since 1932 Air Parts International has been a pioneer in the provision of spare parts and MRO services to the commercial aviation industry. The world’s airlines know API is there at the ready when needed. We don’t expect that to change any time soon. We’ll still be here, providing the same worldwide service and total aircraft support we’ve delivered these past eight decades.

API/Air Parts International Sales, Inc. Burbank, California U.S.A. T: 1-323-849-2141 • F: 1-818-848-9017 E: sales@apisales .com

Air Parts International Sales, Inc.

Left To Right. Abel Soto, Vice President International Sales. Danilo Ruiz, Sales Manager.

M. Peter Balwan, General Manager. Steve Zoelle, Purchasing Manager.

Nicolas Zumbiehl, Vice President International Sales

“In our business, when you need something, you generally need it now. To that point, we’re as near to you as your email, phone or fax machine. Your enquiry will be acknowledged immediately and in any case within 24 hours. Our time sensitive locating and buying procedures enable us to fill orders in the shortest possible time and most importantly, at competitive prices.

“Your order will be packed and shipped to any point in the world via the most expeditious routing, using the best carrier operating to the destination. API’s broad and deep international shipping experience will facilitate the timely delivery of your goods to and at the destination. No one with a grounded aircraft likes to have an urgently needed shipment hung up in customs for days.

“Airplanes only make money when they’re flying; they’re very expensive machines to have sitting on the ground” BE Transport & Logistics | 53

The shortest elapsed shipment time wins in this phase of the game,” notes Balwan.

Air Parts International Sales, Inc. representatives regularly call, in-person, on customers in all parts of the world. “Whether it’s a new customer or one we’ve seen frequently before, our sales team are there to answer your questions and to become more familiar with your individual operation and particular needs. In addition and for your future reference, you will be supplied with informative and current literature on the specific products you buy from us. Remaining sensitive to the diverse and ever changing needs of our clients is one reason API enjoys a reputation for consistent professional service.”

Looking at API’s sales brochure you’ll see: “Call us - we will respond to your emergency whether it is an aircraft-on-ground situation (AOG) or a ground support system problem.

Count on us - you have access to our staff and services 24/7, 365 days a year.”

Nicholas Zumbiehl, API’s vice president international sales stated: “We can also handle your repair orders on rotables when your airline doesn’t have in-house capability.

Your material would be cleared in the US, picked up from the airport, delivered to the manufacturer, overhauled, and returned to you. Likewise, one-to-one exchange

arrangements for rotables can be done as and when required.”

GM Balwan said: “Air Parts International Sales, Inc. is familiar with various terms of payment: letters of credit, documentary drafts, wire transfers, etc.

We can also arrange open accounts with credit limits to cover normal day-today transactions for which documentary procedures can be cumbersome.”

“One of the greatest advantages in dealing with us is the convenience of single source purchasing” 54 | BE Transport & Logistics

Air Parts International Sales, Inc.

Quality assurance All material requiring an FAA authorized repair station certification will be tagged with the appropriate FAA/EASA tag. All factory new FAA Class II units will be supplied with the manufacturerâ&#x20AC;&#x2122;s Certificate of Conformance and/or the Airworthiness Certificate 81303. FAA overhauled and certified material will also include the 8130-3 Airworthiness Certificate. Class III material- piece parts, hardware or components will not be sold in any condition except new with the OEM certificate of conformance.

All shipments will be accompanied by an Air Parts International Sales ATA Specification 106 form. The certificate will describe the condition of material being supplied. Air Parts International Sales, Inc.

has in its records, or those of its suppliers, evidence of the source of the parts being supplied for history and traceability.

Rejections will be credited when material is promptly reported and returned in accordance with commercially approved practices.

All materials sold to you which were directly purchased from the manufacturer will carry the standard manufacturersâ&#x20AC;&#x2122; warranties.

Material sold from FAA/EASA airline excess stocks will carry the Air Parts International Sales, Inc. warranty. All material is sold subject to your inspection and approval.

For more information about Air Parts International Sales, Inc: sales@apisales.com

BE Transport & Logistics | 55

To

Tr

The on A

writ rese 56 | BE Transport & Logistics

Avis UAE

otal

ransportation

leading car rental business in the Emirates, built Avis core values and tailor made for its market

tten by: John Oâ&#x20AC;&#x2122;Hanlon earch by: james boyle BE Transport & Logistics | 57

Avis UAE

A

vis UAE commenced operations in the UAE in 1975 as a car rental franchisee with the diverse Mohamed Hareb Al Otaiba Group. Today, the company has a network of 40 branches, a fleet of over 4,000 vehicles and employs more than 1,800 people has the largest number of branches, and is the only car rental brand that is under the same ownership throughout the Emirates.

Car rental in the UAE is an extremely competitive, with brands like Budget, Hertz, Europcar and a host of local contenders well represented. Avis in the Emirates has evolved to meet the demands of the vibrant oil, construction, trading and tourism driven economy. Avis UAE’s General Manager Joe Thomas explains: “As time passed, individuals & companies wanted to lease cars so we started car leasing in the early 1990s.”

Bus transportation was never part of Avis’s core business but faced with a clear demand from hotels and other businesses for niche services like guest and employee transportation and chauffeur-driven services, Avis UAE decided it should oblige.

“Customers preferred to deal with one single, reputed supplier for related services like self drive car hire or lease, bus transport and chauffeur services. That was the main reason Avis UAE got into the bus business in the late 1990s,” Joe adds.

When Emirates Airlines introduced a pickup-and-drop service for its first and business class customers, it engaged with Avis UAE to provide this service, in view of Avis UAE’s unique positioning in this segment. The

BE Transport & Logistics | 59

contract was awarded to Avis UAE, and since that time it has provided this service.

“Emirates Airlines is a very demanding customer,” Joe observes, “and meeting this key customer’s exacting requirements meant that Avis UAE further improved its chauffeur services. As a result of all that fine tuning I believe we have the best service in the UAE at the moment,” he says.

Avis UAE is the only company in this industry that has ISO certifications covering quality, environmental performance, health and safety for their bus division. “We will be rolling these standards out to the rental and chauffeur drive services as well over the next couple of years – for us these certifications are not just mere box ticking – we practice these daily.”

In 2009, international financial uncertainty, combined with the poor judgements of boom mindset that prevailed earlier hurt the business for a while. “The recession was not so much to blame, as the over-expectations in the home market,” he says. The fleet had been increased in expectation of a large increase in demand that didn’t materialise. Avis UAE found itself with more cars than it needed.

The situation was tricky when Joe stepped in to make sense of the numbers and begin to correct the situation. Four years on Avis UAE

has got the better of the market, he feels, and the company is in much better shape.

In an ideal world, capital assets like a rental fleet should be kept as close as possible to full utilisation. Over capacity is equivalent to waste, especially if it has been funded by debt. “We realised we were sitting on surplus fleet so we had to dispose of it. We had to take a hit because the resale values dropped but since we needed to clear our liabilities, that

“We don’t anticipate the future – we build it. That’s a very far reaching statement” 60 | BE Transport & Logistics

Avis UAE

was the only thing to do.â&#x20AC;? actually citizens, he says. Avis By downsizing in 2009 UAE employs 35 nationalities and 2010, it was possible to including Pakistanis, Indians, keep all of the businesses Arabs, Filipinos and Russians. going and the company was The rental, leasing, Vehicles in fleet back on track by 2011, leaner, c h au f feu r a nd bu s consolidated and stable. One businesses are close to being of the things Avis UAE did equal in size now, though at was to reshuffle or reduce staff and add one time leasing accounted for 40 percent new talent. Going forward, Avis UAE will of turnover. However, leases that were recruit the best people and train them to not profitable were not renewed and that Avis standards. A full time in-house trainer is business was right-sized to its present 20 now in place and a professional Avis manager percent of annual turnover, he says. will be brought in from Avis corporate HQ to Some of the more sophisticated bring the Avis culture to Avis UAE. innovations familiar in Europe have not Recruitment is a constant challenge in the yet reached the UAE. Automation does UAE, whose population of seven million is not suit the rental market here, and most mainly expatriate. Only about 1.2 million are transactions are person-to-person, including

4,000

BE Transport & Logistics | 61

Avis UAE hand-over and pick up. Handheld devices may be introduced in 2014.

There are lots of reasons to hire or lease a car rather than owning one if you are an Emirates resident, so the fundamentals of this business are sound. Avis UAE’s greatest asset is the brand name, which attracts the cosmopolitan customers who are looking for the best in breed rather than someone who can simply provide four wheels.

“The UAE is a very dynamic place”, Joe enthuses. “Sheikh Mohamed bin Rashid Al Maktoum, ruler of Dubai and vice president of the UAE has said: ‘We don’t anticipate the future – we build it’. That’s a very far reaching statement,” says Joe, “but that’s what is happening here. Significant infrastructure and development projects have been announced that will fuel the economy over the next few years. The possibility of the 2020 World Expo being awarded to the UAE is high and if that happens, all the businesses in the country will benefit. Dubai International Airport is now the second busiest international airport in the world after Heathrow.

So the original expansion plan may not have been that far off the mark. “We believe that it was right to downsize when we did: now we are expanding the fleet again, but in a more controlled way. We will keep a close eye on our utilisation levels and grow systematically to meet our customers expectation.”

For more information about Avis UAE visit: www.avisuae.ae

BE Transport & Logistics | 63

Cros

64 | BE Transport & Logistics

AlpTransit Gotthard AG

ssing new frontiers CEO, Marco Ceriani, discusses the creation of the New Rail Link through the Alps (NRLA), a project that has been dubbed ‘the construction of the century’

written by: Will Daynes research by: Abi Abagun

BE Transport & Logistics | 65

Construction of the railway systems building and ventilation centre at the Faido portal has been in progress since 2012

AlpTransit Gotthard AG

T

ruly a natural wonder of our planet, the Swiss Alps have been attracting tourists from across the world since long before the construction of the first hotels and mountain huts in the mid eighteenth century. This continues to this day with the Alpine area as a whole attracting some 100 million visitors each year.

The Alps themselves cover some 65 percent of Switzerlandâ&#x20AC;&#x2122;s surface area. Looking at that statistic alone it is perfectly understandable that, since the Middle Ages, transit across the Alps has played an important role in history, and remains a key issue at a national and international level. Since the beginning of industrialisation the country has worked tirelessly to improve its transalpine network, beginning with the building of the Gotthard Rail Tunnel in 1882.

Today, construction of the New Rail Link through the Alps (NRLA) is creating a fast and efficient railway link with two tunnels under the Gotthard and Ceneri at its heart.

Crossing the Alps with minimal gradients and wide curves, the new railway link will stand at only 550 metres above sea level at its highest point.

The idea of a flat crossing of the Alps is nothing new, what with the first vision of a Gotthard base tunnel having been conceived in 1947, however it is the NRLA Gotthard Axis project, running from Altdorf in the north to Lugano in the south, that is creating the first flat route through the Alps. â&#x20AC;&#x153;Several key aspects characterise the AlpTransit project and differentiate it from other modern railway infrastructure

BE Transport & Logistics | 67

The Gotthard Base tunnel project The sheer scope and complexity of the project are literally unprecedented. No less daunting is the job of ensuring that railway employees, train operators and dispatchers can communicate with each other deep underneath 3,000 meters of Alpine granite.

To make that happen, Alcatel-Lucent Switzerland trusted one of the premier global RF solutions providers, CommScope®.

Project parameters and objectives As the in-tunnel DAS provider, CommScope engineers were asked to design, commission and provide system integration support for the DAS solution. The technical requirements were significant. Trains must be able to connect reliably and seamlessly to the railway’s railway’s GSM (GSM-R) network—the system that allows train operators, dispatchers and in-train personnel to communicate. The DAS must also support traffic from public GSM- 900MHz and GSM-1800MHz networks, one UMTS 2100MHz network and the railway’s PMR-400MHz public safety network. The objective was to ensure accurate, precise voice and data signal handoffs while trains speed through the tunnel at up to 250 kilometers per hour.

ION-M™—the high-speed railway coverage solution ION-M™ is the heart of CommScope’s DAS solution. It is a highly customizable, advanced multi-band, multi-operator, fiber-based DAS that uses master control units connected to multiple remote repeaters via fiber optic cables.

CommScope provides proven expertise and demonstrated success Through its Andrew Solutions railway connectivity portfolio, CommScope has built an impressive resume of successful high-speed rail projects. The first Andrew Solutions distributed antenna systems (DAS) for railway tunnels were developed in the 1980s for use in the construction of the Channel Tunnel—the world’s longest underwater passage, connecting England to France. Since then, CommScope has provided critical communication networks for rail projects in Italy, Taiwan, Spain, Switzerland, Canada, Russia, China and Norway.

Email: WirelessMarketingEMEA@commscope.com | www.commscope.com

PROBLEM SOLVED!

The Gotthard Base tunnel project CommScope® provides reliable DAS coverage 3,000 meters underground at 250 km/h

At times we can’t even get a strong enough cell phone signal in our own home. Imagine being asked to provide reliable, consistent signal strength for passengers speeding through the Swiss Alps at 250 kilometers per hour. That’s right, through the Alps, not over or around them.

In 1998, the Swiss government envisioned a high-speed rail line connecting the international trading hubs of Zurich, Switzerland and Milan, Italy. Only one thing stood in the way: The Swiss Alps. The solution was a 57-kilometer subterranean rail line blasted and bored through solid rock. When it opens in 2016, the Gotthard Base Tunnel will be the world’s longest railway tunnel.

projects,” explains Chief Construction completed with the Ceneri Base Tunnel.

Officer, Marco Ceriani, “for instance the The flat route will cut 40 kilometres off the fact that it will operate with mixed traffic. former distance of 330 kilometres from Basel Passenger trains will travel through to Chiasso and has a maximum gradient of the Gotthard Base Tunnel, which at 57 only 12 per thousand. That is much less than the 26 per thousand on kilometres will be the the 130-years-old existing world’s longest railway tunnel, at a maximum speed Gotthard mountain route. of 250 kilometres per hour “T he Gotthard Base and goods trains at up to Tunnel,” Ceriani continues, 160 kilometres per hour.” “consists of two single-track The Gotthard Base Tunnel tubes which are separated will go into operation in from each other but linked 2016, while three years every 325 metres by crossVisitors to the Alps each year later, in 2019, the flat route passages. In addition, two through the Alps will be mu lt i f unc t ion stat ions

100

million

Work in progress at Camorino, north of the north portal of the Ceneri Base Tunnel, includes the Lugano-Bellinzon

70 | BE Transport & Logistics

AlpTransit Gotthard AG

“It is the NRLA Gotthard Axis project, running from Altdorf in the north to Lugano in the south, that is creating the first flat route through the Alps” at Sedrun and Faido divide the tunnel tubes into three sections of approximately equal length. The multifunction stations each contain an emergency-stop station for evacuation and two track-crossovers, thus allowing trains to cross over from one tube into the other. The tunnel’s maximum capacity is 50-80 passenger

na viaduct and the new underpass of the cantonal road

trains and 220-260 goods trains per day, depending on the operating regime.”

Looking back over the history of the project itself, Ceriani is quick to highlight some of the larger, and indeed more challenging undertakings that have been encountered. “One of the biggest tasks was the construction of the shaft at Sedrun, which the miners began excavating in 1996.

They started from a mountain valley in the Bündner Oberland 1,300 metres above sea level and sank a shaft 800 metres down to the level of the tunnel. From this intermediate heading, they started driving the Gotthard Base Tunnel to the north and south. The purpose of the intermediate heading was to shorten the construction time.”

It perhaps goes without saying that the final breakthrough of the project also stands out prominently in Ceriani’s mind. “This took place in the east tube on 15 October, 2010, at 2:17 pm local time, when the tunnel-boring machine travelling from Faido broke through into the Sedrun section. The breakthrough error itself was minimal, measuring only eight centimetres horizontally and one centimetre vertically, yet it marked a historic moment for not only this project, but the country as well.”

Of course, with a project of this size challenges are difficulties are inevitable.

BE Transport & Logistics | 71

â&#x20AC;&#x153;What the newly constructed Gotthard route will do is make rail travel competitive with road and air travelâ&#x20AC;?

In the Ceneri Base Tunnel at Sigirino, progress continues on four drives

72 | BE Transport & Logistics

AlpTransit Gotthard AG One of particular note occurred during work at the Piora syncline. It is here that on the surface by the road over the Lukmanier Pass, about 1,500 metres above the level of the tunnel, there are outcrops of whitish sugary dolomitic marble. The syncline itself was thought to consist of an inverted cone of loose aquiferous material extending down to a great depth. This zone was also encountered when a 6.5-kilometres-long exploration tunnel was drilled 300 metres above the The Amsteg installations site has been level of the base tunnel. removed and is now being renatured Ceriani goes on to recount what happened next. “Sugary dolomitic marble without dolomite under high water water was encountered. The geologists put forward the pressure flooded out and hypothesis that in the 300 blocked the tunnel-boring metres height difference machine with sand. The The total length of the whitish mixture of water and between the exploration Gotthard Base Tunnel sand flowed out of the tunnel tunnel and the base tunnel, and covered the cantonal there must be a geological discontinuity. It probably road in the Leventina with a sandy layer. The media reported this with takes the form of a solidified gypsum the headline “D-day at Piora Beach” and cap that separates these two different predicted the death of the project.” formations. The entire campaign cost This was not to be of course. “The point around 100 million Swiss francs. It was where the water flowed out was successfully executed before it was known whether sealed,” Ceriani highlights. “Diagonal bores this project could be implemented and the were drilled down to the level of the base financing had been secured. Ten years later, tunnel to investigate the consistency of when actually driving, this controversial the material. Fortunately, hard, compact zone was traversed without difficulty. At

57km

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AlpTransit Gotthard AG

The points for the Sedrun multifunction station are assembled at Erstfeld before being transported into the tunnel

the level of the tunnel it was about 150 metres wide and was driven through at a speed of about ten metres per day.”

As of July 2013 structural work on the project is largely complete, with around 50 percent of the railway infrastructure systems within the Gotthard Base Tunnel having been installed. Meanwhile, in the Ceneri Base Tunnel, excavation work is in full swing, with more than 60 percent having already been cut, making AlpTransit Gotthard confident that the Ceneri Base Tunnel will be ready for scheduled train services in 2019.

Additionally, pilot operations between Faido and the south portal at Bodio will start on schedule in December 2013, making it a further important milestone on the way to the world’s longest railway tunnel becoming operational in 2016.

With strong progress being made across all areas of the project, Ceriani has a very clear view of what he expects it to bring Switzerland in terms of economic and social benefits. “Goods traffic on the north-south axis is constantly increasing and it is the goal for much of this traffic to be transferred from road to rail to protect the sensitive Alpine environment that we hold so dear. What the newly constructed Gotthard route will do is make rail travel competitive with road and air travel. This will benefit more than 20 million people in the catchment area between southern Germany and northern Italy.”

For more information about AlpTransit Gotthard AG visit: www.alptransit.ch

BE Transport & Logistics | 75

76 | BE Transport & Logistics

Transcity JV Project (Legacy Way)

BRISBANE

DEBOTTLENECKED As Brisbane’s economy continues to expand, the Legacy Way project being delivered by Transcity will help accommodate Australia’s most easterly city to grow along with it

written by: John O’Hanlon research by: paul bradley BE Transport & Logistics | 77

I

n the present century alone Brisbane’s population has grown from 3.5 million to more than 4.5 million. That is projected to double by 2031 requiring at least 156,000 additional dwellings to be built. With this growth comes an inevitable increase in traffic congestion. A recent report found that 340 kilometres of Brisbane’s roads are at or above or capacity, and estimates this will jump to 720 kilometres by 2031.

But congestion, itself caused by economic growth, stifles future growth. Realising that the area around Brisbane Airport is set to become one of the region’s main economic generators, Brisbane City Council identified the need for a link between the Inner City Bypass (ICB) and the Western Freeway. In 2005 a pre-feasibility study identified and investigated five links to connect existing motorways and major arterials. It found the proposed Legacy Way (named in honour of the armed services support organisation Legacy Australia) would provide an important bypass for central Brisbane and the inner western suburbs. A business case analysis completed in 2008 concluded that the project could be both technically and financially feasible.

Transcity is the name of the joint venture company formed to deliver this ambitious decongestion project. It comprises Brisbanebased BMD Constructions, who has significant local knowledge and resources and two specialist international infrastructure firms. Ghella is an Italian company with an extensive background in tunnelling projects round the world while Acciona of Spain is recognised for its work in major construction projects worldwide. The contract for Legacy

78 | BE Transport & Logistics

TBM’s Annabell and Joyce are commissioned prior to their delivery and assembly at the Legacy Way worksite

Transcity JV Project (Legacy Way)

Transcity JV Project (Legacy Way) Way was signed in January 2011, and Transcity started working at both ends in the second quarter of that year. Two Herrenknecht TBMs, each weighing approximately 2,800 tonnes and 110 metres in length, are being used to construct Legacy Way’s 4.6 kilometre parallel tunnels between the Western Freeway at Toowong and the ICB at Kelvin Grove.

These machines are capable of cutting a 12.4 metre hole through the hard rocks that characterize the geology below Brisbane at an average rate of 21 metres day, though with a best day record of 49.7 metres. The machines also install the precast concrete segments that form the tunnel walls. Tunnelling work

Construction of Legacy Way’s cross passages

started from the Toowong end in August 2012 – quite an achievement since it took four months just to assemble the TBMs there.

The machines have been given names – Annabell working to the south of her sister Joyce. The first TBM is named after Annabell MacKinney, the daughter of the late Lance

h+E logistik gmbh New tunnel constructions require tunnel conveyor belts and conveyor systems.

Providers that stay on the international market are those that remain competitive through continuous process optimisation.

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To give room to sustainability and corporate growth, we have expanded in 2010 with the opening of a further site: the H+E production facility in Aschersleben. Equipped with state- of-the-art machinery, this production site is optimally geared towards the

individual requirements of our clients.

The H+E site in Aschersleben is also a training centre which enables us to provide young people with individual opportunities for professional development within this highly interesting sector.

It is important to us that every employee – whether in development, production or projects around the world – upholds our philosophy: Innovation, reliability and competitiveness form the basis for the trust that our clients place in us. www.helogistik.de

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Corporal Jared MacKinney who was killed in action in Afghanistan in 2010. The second TBM is named after Joyce Tweddell, a nurse during World War II who showed immense courage after being held as a prisoner of war in Sumatra for three years before going on to become Queensland’s Chief Radiographer.

The pair of them are scheduled to break through close to the ICB around the middle of 2013, though they have been getting through their task at a spanking rate which anyone

can follow in real time on http://transcityjv. com.au/the-project/tunnelling/tbm-tracker/.

At the time of writing they had each travelled 2.5 kilometres, and were crossing Guthrie Terrace, Paddington.

The machines work day and night, and each has a crew of 22 people to keep it operating. Both TBMs are averaging a rate of more than 150 metres per week, a world class standard for the industry - there are only a few projects worldwide that can show similar

“Each milestone we reach on this project brings us one step closer to being able to provide a four minute trip between Toowong and Kelvin Grove”

Precast concrete segments at the western worksite

82 | BE Transport & Logistics

Transcity JV Project (Legacy Way)

Precast concrete segment production

achievements using large diameter TBMs. Transcity Project Director Fernando Fajardo said he was proud of the team’s outstanding efforts. “The team is setting records for our rate of excavation which is a credit to their global expertise, hard work and commitment to successfully delivering this project.”

From the point of view of Brisbane City Council, what matters is that the Legacy Way tunnel will be delivered on time to residents and visitors by 2015. Lord Mayor Graham Quirk said the record speeds being set on the project, was a good indication. “Each milestone we reach on this project brings us one step closer to being able to provide a four minute trip between Toowong and Kelvin Grove,” he said. “Legacy Way alone will cut the trip from Jindalee to Kelvin Grove from

30 minutes to 10 minutes and allow motorists to travel from the Ipswich Motorway to the Airport without one traffic light.”

Annabell and Joyce’s high productivity has meant an increased demand for precast segment production and a faster removal of spoil which is being transported via an underground conveyor to the Mt Coot-tha Quarry.

Nine interlocking segments are required to complete each ring, which spans the circumference of the tunnel. Approximately 4,300 rings are required to line the twin two lane tunnels: that adds up to 38,430 segments in all. The concrete segments are transported from a purpose built facility at Wacol, about 16 kilometres from the city and moved to the front of the TBM via a segment feeder. There they are positioned around the perimeter of

BE Transport & Logistics | 83

Precast concrete segments are placed by the TBM

Transcity JV Project (Legacy Way) the excavated tunnel and held in place by the TBM’s auxiliary thrust cylinders while they are bolted and grouted into place.

It has also caused pressure to move out the excavated material faster; but the good news is that Transcity planned a very smart and environmentally friendly solution. There’s no trucking of spoil. All rock cut from the tunnel face is transferred via an underground conveyor from the western worksite into the Mt Coot-tha Quarry. The tunnelled conveyor is approximately 870m in length, of which approximately 530m is underground.

The spoil conveyor’s innovative design provides significant benefits for the community including a decrease in noise and dust impacts during tunnelling operations. It also limits the need for almost 96,000 truck movements on the Western Freeway.

The 1,000,000 cubic metres of spoil excavated from the twin tunnels will be used to rehabilitate the quarry.

At the end of the project rehabilitation of the western worksite at Toowong will include an imaginative four hectare expansion of the Brisbane Botanic Gardens at Mt Coot-tha, with native vegetation restored and expanded to reflect the sub-tropical retreat for which the Botanic Gardens is famous. No mess, less noise and a haven of peace on top of a huge reduction in congestion with peak travel times between Centenary Bridge and the ICB almost halved – Legacy Way is a double win for Brisbane.

For more information about Transcity JV Project (Legacy Way) visit: www.transcityjv.com.au

BE Transport & Logistics | 85

written by: John Oâ&#x20AC;&#x2122;Hanlon research by: Abi Abagun RDA Zambiaâ&#x20AC;&#x2122;s is juggling massive resources to deliver an ambitious road network that will enable the landlocked nation to export its goods and grow its economy

LINKing ZAMB 86 | BE Transport & Logistics

RDA Zambia

BIA BE Transport & Logistics | 87

8,201 kilometres of road will be built or upgraded over a period of five years

RDA Zambia

A

ccording to the Zambia Tourism Board this nation surrounded by eight neighbours has over 40,000 kilometres of roads, only 8,200 kilometres of them tarred and another 8,000 kilometres all weather gravel road. The rest are made of compressed laterite and vary in condition from reasonable to rather bad, being vulnerable to the seasonal rains. A recent review of the condition of urban roads revealed that 60 percent of the urban road network is in poor condition, but it’s the trunk network that has the greatest impact on Zambia’s economic development, and the road network plays a critical role in the development of the country and the region as a whole.

That’s why the RDA recently launched its Link Zambia 8000 road project, also known as the Accelerated National Roads Construction Programme. A total of 8,201 kilometres of roads will be built or upgraded over a period of five years at an estimated cost of K28.4 trillion. Link Zambia 8000 aims to connect Zambia’s population centres with those of its neighbours, create 24,000 jobs, especially for young people, grow local industries and contractors, cut travel times creating hubs of economic growth in outlying regions.

Angola, DRC, Tanzania, Malawi Zimbabwe, Botswana Namibia and Mozambique are all growing fast, so roads like the T4 or Great East Road, which links the capital Lusaka with the Mozambique port of Nicola are vital to trade and tourism alike. A key 360 kilometre section of this road between Luangwa Bridge and Mwami Border is taking priority for rehabilitation and upgrading as part of the Nacala Road

BE Transport & Logistics | 89

A JOURNEY IN AFRICA TO ACHIEVE NEW BENCH MARKS IN QUALITY, SAFETY, OPERATIONAL EFFICIENCY & WORK ETHICS AMSL (African Mechanical and Superlift Ltd) has executed more than 20 successive projects in Zambia in connection with Smelter, Refinery and Tail Leaching plants as well as Annual Maintenance contract of Concentrator.

Our expertise are in Civil Works, Mechanical Equipment Erection (including tall & heavy equipment in single-piece), fabrication/erection of large scale piping, structural & large dia. Tanks.

Since 2009 AMSL have taken up Annual Plant operation maintenance contracts for units like Concentrator, Smelter, Tail Leaching Plant and other ancillary units eg. Sulfuric Acid plant,DM Water Plant,Oxygen plant,ETP etc almost on continuous basis.

PLOT NO:1867, P.O Box no.10939, Opp.Solwezi Road, Industrial Area, Chingola, Republic of Zambia.

Email.id: amslzambia@gmail.com amslconstruction@gmail.com Web site: www.amslafrica.com Land line: +260(212)2350973 Mobile: +260966170712/+260974776264

AMSL is working with international standards of Health, Safety, Environment and Quality requirements to client’s satisfaction.

AMSL is now confident and ready of offering following services: • Handling of EPC Contract • Large scale civil works • Large scale piping and structural steel work.

• Erection of process/mining equipment and material conveying system.

• Large dia storage tanks & tank farms.

• Annual plant Maintenance.

ZAMBIA RDA Zambia RDA Zambia feature text in qui officia deserunt Corridor Project from Nacala forculpa both supervision and civil mollit animtenders id est have laborum. to Lusaka go here.....Lorem ipsum through Malawi and works and now dolor sit amet,example consectetur Lorem ipsum dolor amet, is an excellent of the been launched by thesit RDA for adipisicing elit, sed do consectetur adipisicing elit, urgency with which the RDA all four sections.

It is planned eiusmod incididunt sed dofoureiusmod tempor is pursuingtempor its agenda. that all contracts will start incididunt ut1stlabore et ut The labore et isdolore work beingmagna jointly at the same time April, 2013 dolore magna expected aliqua. Ut aliqua. ad minim with completion in funded Ut by enim the Government enim minim veniam, veniam, quis nostrud the firstad quarter of 2015. of Zambia together with the quis nostrud exercitation exercitation ullamco laboris European Development Bank, Once competed the new ullamco laboris nisiboost ut nisi aliquip exDevelopment ea commodo TheutAfrican section will not just aliquip ex but ea atcommodo consequat.

Duis aute irure export trade the same Bank, the Agence Française consequat. irure dolor in reprehenderit This is aUnion. caption this is areduce caption accidents de Développement and theinEuropean time and Duis bringaute down the in reprehenderit voluptate velit esse The rehabilitation andcillum upgrading works are operating costsdolor for logistics companies in in dolore eu fugiat nulla pariatur. velit cillum fugiat being implemented in four separateExcepteur contracts. voluptate the region, all esse among thedolore RDA’s eu strategic sint cupidatat non proident, sunt nulla pariatur. Excepteur sint occaecat Goodoccaecat progress is being made with procurement objectives.

RDA ZAMBIA AFRICAN MECHANICAL AND SUPERLIFT LIMITED Established in 2008, African Mechanical and Superlift Limited (AMSL) is a mechanical engineering company operating in Zambia, Mozambique and South Africa. The AMSL team has vast practical experience and expertise in mechanical construction, mechanical maintenance and heavy equipment erection, providing a variety of solutions in accordance with international standards in health, safety, environment and quality.

Our management team has collective experience in the design, implementation and operation of mechanical engineering projects including the supply, fabrication and erection of structural steel, piping and tanks, and the mechanical maintenance of copper smelters, concentrators and refineries.

We undertake the annual maintenance of concentrators which involves dismantling,

overhauling heavy mechanical equipment such as the crush mill, ballmill, sagmill, conveyors, and flotation cells. We also have the annual maintenance contract for the new smelter at Nchanga, Africa’s first ‘Direct to blister technology’ smelter, including responsibility for the anode furnace, castwheel, compressors, slag granulation ponds, conveyors, boiler, sulphuric acid plant, pre and post water treatment plants with related pumps, blowers, copper tubes, duct, piping and equipment.

Our objectives are to focus on our clients’ needs with quality service and develop a long term partnership, maintaining a high degree of health, safety and environment cleanness at our job sites.

E. amslzambia@gmail.com E. amslconstruction@gmail.com www.amslafrica.com

2012 | | 912 BE Transport &JANUARY Logistics

RDA Zambia

20 percent of all contracts go to local Zambian owned contractors

On the other side of the country Zambia It is a condition of all contracts that 20 percent faces the DRC with its enormous economic of the work should go to local contractors – potential. A $207 million contract was signed that is, businesses that are majority owned by in December for the design and construction Zambians. The objective of this policy is to of a new road between Luwinga and Mansa, help build the construction sector in Zambia as a mere 100 kilometres from Lubumbashi. a whole, and reduce unemployment – however The contractor China Henan will be starting a key benefit will be the resulting transfer of work in the first quarter of 2013 and expects skills, and the stimulation of entrepreneurship to complete the work during making Zambia more self 2016. “The construction of reliant over time. the Mansa to Luwingu Road 2012 was a defining year will provide a shorter link in the six year history of the between Copperbelt and RDA, says Chiwala. Last year Luapula provinces,” says CEO the government of Zambia Bernard Chiwala and though allocated 17 percent of the the bulk of the work will be National Budget to the road carried out by international sector alone, the largest Target revenue from contractors, he promises that allocation given to any sector bond issue local contractors must benefit. in recent history. The total

$1.5

Billion

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China Henan International Cooperation Group Co. Ltdâ&#x20AC;&#x2122;s (CHICO) main business operation covers contracting international engineering projects, consulting service for international projects, international human resource cooperation and exchange, mining development, agriculture investment, undertaking infrastructural projects aided financially by Chinese Government in oversea countries apart from the involvement in information industry.

CHICO maintains and operates regional offices in over 20 countries and regions across Asia, Africa and Europe to service its vibrant business. www.c-chico.com/En

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Contact us today and put your company in the spotlight!

vincent@bus-ex.com 94 | BE Transport & Logistics

roads budget for 2013 is around $600 million from the Zambian government with as much again being contributed by external agencies such as the EU, COMESA, the Development Bank of Southern Africa and international contributors like Saudi Arabia and Kuwait.

An increasing contribution comes from the road fund fuel levy. A road user charge tariff was introduced in the form of fuel levy from 1 May 1993. When it was identified that the deterioration of the road network in Zambia and the consequent loss of road asset value was caused by inadequate funding and poor management. In 2012 19 percent of expenditure on roads came from the fuel levy: in 2013 that rose to 27 percent.

Another source of funding is being promoted. The Road Development Agency

RDA Zambia

The RDA is focused on linking the more remote parts of Zambia

(RDA) plans to start building a toll-gate system across Zambia’s national road network by the end of the year, says Bernard Chiwala. He said the RDA expected to raise about 25 percent of its annual budget from the planned tolls.

“We have appointed a road tolling manager and in the next four months, they will begin to prepare for installation. We will install them on 17 selected sites which we have already identified.” The planning stage will be

completed by June, with construction starting in the second half of 2013, he says. And tolls will apply on the Great East road too, once the upgrade is finished.

The routes the RDA will initially focus on tolling are those linking Livingstone, the busiest tourist centre and Nakonde on the Tanzanian border. But many new projects will be subject to a similar funding model. A good example is the Kazungula Bridge project

“Better roads that meet world standards are what the people of Zambia want to see from this point going forward” BE Transport & Logistics | 95

The RDAâ&#x20AC;&#x2122;s mission is to meet world standards

RDA Zambia linking Botswana and Zambia at a point now served by a pontoon. Under an agreement signed at the end of last year the $124 million project would be funded by the government of Japan through Japan International Development Cooperation (JICA), the African Development Bank and the government of Zambia. The project includes the construction of a new tolled road and railway bridge with one-stop border post facilities and access roads at Kazungula. It will take four years to build the 3,028-foot bridge,” said Chiwala. Tolling will address the added impact of trucks on the roads – commercial vehicles will pay proportionally more than cars, and these funds will go toward the maintenance of the roads.

Finally, the RDA plans to sell $1.5 billion of bonds by the end of this year. The agency has presented a plan for the sale to Finance Minister Alexander Chikwanda and approval is expected soon, said Bernard Chiwala: “Toward the second half of the year we will have concluded that,” he said. “It is our expectation that we will be able to raise about $1.5 billion” from international investors.” It’s a neat financial arrangement, with the security for the bond issue deriving from revenues from the road toll programme. Whatever the source of funds or the contracting model, the RDA will always keep sight of the goal, to promote the national interest of Zambia. “Better roads that meet world standards are what the people of Zambia want to see from this point going forward.”

For more information about RDA Zambia visit: www.rda.org.zm

BE Transport & Logistics | 97

METROPOLITAN

METRO The Madrid underground is the fastest and most efficient and affordable way of moving around Madrid. The city boasts one of the largest networks in Europe, serving most of the capital city and a good part of the suburbs

written by: john o’hanlon research by: Louisa Adcock

98 | BE Transport & Logistics

Metro de Madrid

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Part of Metro de Madridâ&#x20AC;&#x2122;s investment strategy is aimed at improving its current services

Metro de Madrid

T

he first line on Madrid’s underground railway network, the Metro de Madrid, was inaugurated on the 17th October 1919 by King Alfonso XIII. It had eight stations along 3.3 kilometres of track. Ever since that date the Metro has experienced progressive growth, which has made access possible to the majority of the capital’s districts and to some of the most important municipalities in the metropolitan area. Today it is the sixth longest metro system in the world, with 300 stations and 292 kilometres of track, 90 percent of it underground. In 2011 Metro de Madrid carried 635 million passengers at an average speed of nearly 31 kilometres per hour, with a high degree of automation and with state of the art rail signalling, safety and access systems.

Their security is very important to Madrid’s travelling public. “In a survey of the expectations of our customers, safety was the second most important factor, only surpassed by speed,” says CEO Ignacio González Velayos.

The safety systems installed throughout Metro de Madrid are all best of breed and are monitored permanently from the Command Post, the nerve centre of the system. Safety is inseparable from environmental performance, he believes. “Society is not content merely with meeting the need for mobility, but it demands that this should be achieved in a way that is sustainable in economic, social and environmental terms.”

One of the largest engineering projects was completed a decade ago in 2003 when the Metro expanded its network into the satellite towns of Móstoles, Fuenlabrada, Alcorcón, Leganés and Getafe, bringing the service to a

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Ticketless technology can drive public transport uptake, survey reveals Public transport providers know they need to attract and retain riders to help offset operating costs, increase revenue and grow profitability. But what will get drivers out of their cars and onto public transport?

Respondents to a global Accenture survey on public transport indicate that ticketless journeys, aided by new technology, could be a key motivator. What’s more, the majority said they are willing to pay for the convenience.

Survey respondents globally (76 percent average) believe a ticketless system—using contactless payments or proof of purchase on mobile devices—would encourage some drivers to start using public transport. The majority of respondents (69 percent) also believe that having a one-ticket-for-all system would help increase riders. The figures were even higher in Europe, with passengers in London (70 percent), Paris (78 percent) and Barcelona (78 percent) emphasizing the importance of a single ticket for multiple modes of transport. Of the other cities around the world, only New York ranked above average.

This is hardly surprising. Consumers, aided by mobile technology, expect easy, efficient customer transactions in all spheres of their lives. They want their door-to-door public transport journey to run as smoothly as if they had driven there themselves—and expect technology to pave the way.

Transport agencies ignore these trends at their peril. Although it may be difficult to integrate new technology into existing operations, customers expect it. And they want it fast: 77 percent of global respondents expect to purchase tickets on their mobiles/smartphones in the next two years, particularly those in Los Angeles, New York, Sao Paulo and London.

Survey respondents clearly see a cost-benefit trade-off for ticketless travel. Only 10 percent (on average) of respondents said they would be unwilling to countenance any price increase to pay for new technology. Travelers’ willingness to pay for the technology can help defray implementation costs—plus generate

Globally, respondents believe a ticketless system will encourage uptake

76%

revenue by attracting and retaining riders over the long term.

These are just a few of the survey findings suggesting that consumers expect transport agencies to employ technology to deliver a more convenient travel experience. Through technology, public transport providers have an opportunity to address ridership and revenue challenges that continue to impact performance. But doing so means developing technology-driven strategies that offer consumers the kind of superior travel experience they will increasingly come to expect.

For more information on this research please visit www.accenture.com/ publictransportation or contact: Philippe Guittat philippe.guittat@accenture.com Emmanuel Schneider emmanuel.schneider@accenture.com Michael J. Wilson michael.j.wilson@accenture.com

90% willing to pay to introduce new technology for ticketless travel

Respondents also believe a one-ticket-for-all system will encourage uptake 78%

78%

76%

77% will purchase tickets via mobile devices in the next two years

70%

Paris

Barcelona

New York

London

The consumer survey was conducted by Coleman Parkes Research on behalf of Accenture. It was carried out online in September 2012 in multiple languages in Korea, Brazil, the United States, Germany, Spain and the United Kingdom. All 4,500 respondents were 18 years or older. Modes of transport surveyed include subways, taxis, boats, cars, trains, trams and buses.

To learn more, visit: www.accenture.com/publictransportation

10+90 23+77 90%

77%

METRO Metro DE de MADRID Madrid

ACCENTURE & METRO DE MADRID “COMMIT” TO HIGH PERFORMANCE Improving innovation, efficiency and customer service are the main challenges companies now face in many industrial sectors.

Metro de Madrid is meeting these challenges through the ambitious expansion of its rail infrastructure and technology, which will boost its rail network size by 61 percent and the number of installations by 38 percent.

To help achieve its expansion goals, Metro de Madrid asked Accenture to transform its infrastructure maintenance operations.

The Center of Operations for Maintenance and Monitoring of Installations and Telecommunications (COMMIT) formed the basis of a new infrastructure maintenance operating model, revamping Metro de Madrid’s technologies, processes and organizational structure.

COMMIT, with its advanced management processes, remote monitoring and telemaintenance capabilities, is able to efficiently manage more than 200,000 installation incidents per year.

Thanks to this pioneering model, Metro de Madrid has saved €7 million a year in maintenance costs and improved the service quality for its clients.

Accenture—committed to high performance delivered. www.accenture.com/publictransportation

BE Transport & Logistics BE WEEKLY| 103 |2

TECHNOLOGIES FOR THE RAILWAY SECTOR

A Technology Group providing end-to-end solutions for the railway sector - Solutions: • Telecom: SDH, PDH and ATM/IP networks • Fiber optics by 3dnet.es, a company of the Group • Railway Operations Telephony • IP Intercom solution • Ground-train radio • TETRA • Passenger Information Systems • Public Address • CCTV over IP • Access Control (RFID) solutions With 40 years of experience and projects developed in more than 15 countries - Projects: • Metro de Madrid: Telecom, IT & Security: Line 2, Line 4, Line 7, Line 9; Line 10; Metrosur; 30 % of the total fiber optics network; RFID access control on stations

and trains; IP Intercom in Metrosur, Radiant network for CBTC (Line 1, Line 6, Metronorte, Metroeste, Line 11), Main Control Center Alto Arenal and Redundant at P. Sur • Metros: IT, Telecom & Security: Metro Bilbao, Metro Barcelona, Metro Valencia, SFM, FGC, ETS, FEVE • Tramways: IT, Telecom & Security Barcelona Tramway, Tranvía Parla (Madrid), Tranvía Vélez-Málaga; Antalya Tramway (Turkey); Tranvía Alicante; Tranvía Vitoria, Tranvía Bilbao, TROLE (Ecuador), Metro Ligero de Madrid • High Speed and Railways: Telecom, GSM-R, IT: High Speed Zaragoza-Huesca, IT & Telephony: Qalib-Shabin ENR (Egypt), 1.450 Km f.o. network ADIF; Safety: Point Heaters High Speed Ankara-Istanbul, Railway inspection systems and Point Heaters Ankara-Konya; Point Heaters and Railway inspection systems Marmaray (undergoing); Level Crossings ADIF; Point Heaters and Hot Box ADIF.

www.gruporevenga.com

Metro de Madrid million additional people and grupo revenga providing a direct connection Grupo Revenga -GR Technologies-, provides end-to-end to Madrid Airport. In all this solutions to Metro de Madrid since it was created in 1972. added 50 kilometres of tunnel The company has participated in all of the expansion to the system. Nevertheless plans deployed by Metro de Madrid and the Government of the company has continued to Madrid, having equipped with a wide range of solutions its invest, spending €40 million 293 Km, 276 stations and 2 control centers.

The strength of the capabilities and the success of the in 2012 and budgeting the technologies of this R&D focused company are apparent same amount for 2013. in view of the number of its solutions currently deployed This money is not being in cutting-edge telecom, IT and security projects in used for further extension Metro de Madrid. of the network at present In the own words of Grupo Revenga, “Metro de Madrid is a according to Velayos: “We key customer with whom we are proud to partner with in the are not immune from the deployment of one of the most important metro networks in the world, with one of the best quality/cost ratios”. austerity that the Community www.gruporevenga.com of Madrid has to exercise in its budget. But let’s not forget that thanks to the very important efforts by our authorities over the last decade we have been able to almost double our network and give the people of Madrid access to a suburban train network, known throughout the world. At the moment our investment strategy is not aimed at further expansion of the network but at the services and features requested by our customers.

Today’s travellers are not content to simply go from one point to another: they want to do it quickly, safely, and with access to high quality complementary services.”

€40 million Investment in 2013 Ignacio González Velyaos, CEO

BE Transport & Logistics | 105

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Metro de Madrid Mi nds a re bei ng concentrated in the Ineco, company leader in transport engineering and municipality by the Madrid consultancy, has maintained a close relationship for years 2020 project, Spain’s bid for with Metro de Madrid, to whom it has provided its services the next but one Olympic in several occasions. Both companies collaborate in the Games. We won’t know till development of international projects aiming at reinforcing September 2013 whether that its leadership abroad. Its experience in the application of new technologies and management practices for the construction will come off but meanwhile and the commissioning of new railway lines in several Metro de Madrid continues countries demonstrate its capacity to face challenges and to its programme aimed at develop international land transport projects. adapting its infrastructure www.ineco.com to meet the needs of its customers. In recent years this has seen a programme to improve travel times and the introduction of a new technological platform to support contactless card payment and extend that system to the entire network.

Metro de Madrid’s recently established Interactive Customer Support Centre (CIAC or Centro Interactivo de Atención al Cliente) has already dealt with 1,755,000 enquiries.

“The centre,” says Velayos, “deals directly and personally, all year round between the hours of 8am and 10:00pm, with all information requests received, not only in relation to the service provided by the company but also to any other information about events and socio-cultural activities in Greater Madrid, as well as lost property. There are also face to

ineco

635 million Metro de Madrid continues to streamline its infrastructure

Journeys on Madrid Metro in 2011

BE Transport & Logistics | 107

face Customer Service Centres at the airport and major stations, which deal with enquiries in a more personal manner.”

Metro de Madrid is a major job creator, at a time when Spain needs all the jobs it can get. Apart from the 7,500 people on its direct payroll, Ignacio González Velayos points out, Metro de Madrid has agreements and contracts with other companies, public and private, which in turn have their own employees, which multiplies the creation of job roles. “Our public sector contracting law obliges us to put out our projects for tender, and many of these tenders are won by local companies.”

Each year Metro de Madrid rolls out its programme of continuous improvement in technology, innovation and research. “We are always looking for ways to improve our business model as a public service transport provider.

Metro de Madrid wants nothing less than to be looked to as a global benchmark in every aspect of urban passenger rail.” Its commitment to quality, he adds, is demonstrated by the certificates received by Metro de Madrid over the last year for, among others, the Management of Quality Service within Public Transport, Environmental Management, and Health and Safety Management.

The company holds an ISO-14001 certificate in Environmental Management

and invests in renewable energy sources. In 2009 it commissioned its first geothermal air conditioning system at Pacifico station. This system offers many advantages compared to traditional systems, such as energy savings and greater independence from the electrical supply. Geothermal energy savings reduce CO2 emissions by 50 percent while also reducing noise pollution, since the heat pumps operate quietly. Other advantages of

“There are face to face Customer Service Centres at the airport and major stations, which deal with enquiries in a more personal manner” 108 | BE Transport & Logistics

Metro de Madrid

A metro train passes through a station

this system include low maintenance costs and increased useful life of equipment and installation. “Rail in general, and in particular the Metro, is one of the most efficient and sustainable modes of transport,” says Velayos.

“Metro de Madrid has always supported all aspects of sustainability, including those concerning the environment.”

Two years ago the company decided to launch itself across the social networks as an alternative way to interact with its customers – today it has more than 35,000 followers. And the company makes great efforts to engage with the social programmes that matter to its customers. It helped publicise Twelve paths for living after cancer, a campaign organized by the Madrid Institute of Oncology, through a photographic exhibition spread over twelve

stations, in which twelve people who have survived cancer delivered messages of hope.

More than 3,000 people took part in You’re just a metro away from saving many lives a campaign organized by the Spanish Red Cross, Coca Cola and Metro de Madrid, which turned four stations into blood donation centres run by the Red Cross. And Metro de Madrid supports overseas projects too: every year it runs a Cinema in Concert initiative, for Fundación Padre Arrupe’s grant fund, which covers the cost of schooling of the children at Colegio Español Padre Arrupe in El Salvador.

For more information about Metro de Madrid visit: www.metromadrid.es

BE Transport & Logistics | 109

Metro de Santiago

Serving Santiago CEO Roberto Bianchi talks about the extensive expansion programme being undertaken to improve the infrastructure of what is South Americaâ&#x20AC;&#x2122;s largest subway system

written by: Will Daynes research by: Louisa Adcock

BE Transport & Logistics | 111

Aerial view of the Metro line running 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

BE Transport & Logistics | 113

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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

BE Transport & Logistics BE WEEKLY| |1152

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 Transport & Logistics | 117

“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

118 | BE Transport & Logistics

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

BE Transport & Logistics | 119

DHL Global Forwarding - Sub Saharan Africa

Always moving forward

CEO of DHL Global Forwarding â&#x20AC;&#x201C; Sub Saharan Africa, Roger Olsson, discusses the wealth of opportunities Africa has to offer and how the business is striving to become the first choice solutions provider for its customers

written by: Will Daynes research by: Paul Bradley

BE Transport & Logistics | 121

H

eadquartered in Bonn, Germany, and today employing in excess of 470,000 people in over 220 countries and territories worldwide, Deutsche Post DHL has become a name synonymous with couriering and logistics. The world’s leading mail and logistics group, it generated revenues of €55.5 billion during 2012, representing an increase of 5.1 percent comparing to previous year. This increase mainly reflects the exceptional market position that DHL maintains in the world’s growth regions, such as Asia and Africa When it comes to Global Forwarding, DHL is the world leader in air freight services and one of the biggest providers of ocean freight services. Through the work of its 30,000 employees, DHL Global Forwarding (DGF) helps ensure the transport of all manner of goods by air or sea on a daily basis.

“At the beginning of 2012,” states Roger Olsson, CEO of DHL Global Forwarding – Sub Saharan Africa, “DGF merged three previously separate regions, Europe, the Middle East and Africa into a single EMEA region. This consolidation allowed DGF to better coordinate its commercial activities and improve operational efficiencies between countries.”

Meanwhile, this event also brought about the establishment of some subregional offices, one of which would open in Johannesburg, South Africa. “From this office,” Olsson continues, “we have a regional team committed to improving the group’s activities in the Sub-Saharan Africa region. It also means that for the very first

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DHL Global Forwarding - Sub Saharan Africa

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Duis aute irure are covered through the dolore eu fugiat nulla groups’ with credible dolor inwork reprehenderit in pariatur. Excepteur sint local partners. support global volunteernon day voluptate velit esse cillum This is a caption this is a caption DHL occaecat cupidatat “Wheneu it comes dolore fugiatto DGF’s nulla proident, sunt in culpa qui pariatur. Excepteur sint occaecat cupidatat vital. officia deserunt mollitwe anim est laborum. operation in Africa,” Olsson explains, In addition, areidalso able to non proident, suntoverall in culpa qui officia Lorem ipsum amet, consectetur “having the biggest coverage of any leverage our dolor globalsitpresence to cater deserunt mollit provider anim id est Lorem for other logistics is laborum. understandably adipisicing sed do tempor the vastelit, number of eiusmod businesses that ipsum dolor sit amet, consectetur adipisicing incididunt ut labore et dolore magna aliqua.

HATFIELD VW At Hatfield VW Commercial, there are no middlemen. Your service consultant is also your auto technician. Having recently achieved the highest customer satisfaction index in the country, we at Hatfield VW Commercial continue to strive for service excellence.

With supreme customer service being top of mind and a partnership that has thrived for over nine years, it is no wonder that Hatfield VW Commercial and DHL Express have jointly been associated as the leaders in customer service in all aspects of their respective businesses. Operating from a brand new showroom facility in Hatfield Pretoria, Hatfield VW Commercial and the highly versatile and dependable Volkswagen Commercial Vehicles fleet continue to proudly satisfy the needs of DHL nationally. In addition, the Hatfield

service workshop has received International Recognition for its high customer service levels, thus it is inevitable that the market leader in logistics are affiliated to a dealership that is consistently rated number one in service. The success of this partnership is based on an open, honest and frank relationship and having an understanding of each other’s business and its needs. Together, Hatfield VW Commercial and DHL Express continue to set the benchmark in supreme customer service. www.hatfieldcommercialvehicles.co.za

Commercial Vehicles

BE WEEKLY| 125 |2 BE Transport & Logistics

CARGO WITH CARE With our 777-200F, 757-260F and MD-11 mixed fleet freighters, Ethiopian Airlines Cargo takes the lead as Africaâ&#x20AC;&#x2DC;s premier cargo operator. We take your goods safer, faster, further and more economically to more destinations.

Our heavy lift capability opens up more business opportunities to you.

www.ethiopianairlines.com

DHL Global Forwarding - Sub Saharan Africa

Airfreight

are working to bring cargo into and out With its GDP growth outlook estimated of the continent.” to remain around 5.5 percent over the Olsson also shares the belief held next three years, Sub-Saharan Africa is throughout DHL that the people that make up expected to remain the region with the its workforce are just as vital a component to its second highest growth rates worldwide, success as its global coverage. after Asia for the foreseeable “We have dedicated people future. Some of the more throughout the business who tangible opportunities for know better than anyone else a multinational logistics how to expertly deliver the player like DHL are the type of services we provide. recent oil & gas discoveries At the end of the day you in Eastern Africa, and can have the largest network the immense natural and in the world, but without mining resources found Revenue generated the right people on hand to throughout the region.

by Deutsche Post make it work you will never It is however important DHL in 2012 get very far.” not to ignore the more

€55.5 Billion

BE Transport & Logistics | 127

traditional logistics sectors that DHL serves, namely engineering, automotive and the consumer-sector.

“The oil and gas industry,” Olsson reveals, “accounts for roughly half of our entire business today in the Sub-Saharan space. It is for this very reason alone that we continue to invest more and more in this area of our operations as the opportunities available to us are simply unbelievable, particularly as major oil and gas undertakings further help put countries like Kenya, Mozambique, Tanzania and Uganda on the map. Following just behind in terms of importance is the mining sector where we also have a special focus, leveraging our global expertise when it comes to the industry to assist in the development of business across SubSaharan Africa.”

As an organisation, the work of DHL goes beyond simply doing business with its customers. One of the achievements it is most proud of has been the development of a comprehensive strategy to fulfil its Corporate Social Responsibility requirements. In Africa it has helped spearhead the “Go Teach” programme. Sustained through an existing partnership with SOS Children’s Villages, the programme aims to provide disadvantaged youths with the confidence,

knowledge and skills needed to enter the world of employment. Furthermore, DHL supports Global Volunteers Day, an annual event that sees thousands of its employees volunteer to carry out environmental and community related activities.

“DGF plans to deliver the same kind of door-to-door service in Africa that it currently does elsewhere in the world” 128 | BE Transport & Logistics

DHL Global Forwarding - Sub Saharan Africa

Warehouse office in Gabon

As DGF makes plans for the future its focus looks set to revolve around increasing its service offerings and capabilities in such a way that it will be able to deliver the same kind of door-to-door service in Africa that it currently does elsewhere in the world.

“Achieving this goal,” Olsson concludes, “will no doubt bring with it challenges of its own. Nevertheless we see it as absolutely fundamental to our business that we are able to deliver ever-improving service levels and product offerings that allow us to service the entire logistics chain here in Africa, from origin to final destination. What we benefit

from is having a clear strategy and vision for the future, one that we hope will result in DGF being the first choice solutions provider for its customers in Sub-Saharan Africa, growing up our market share in the process. This will be accomplished by expanding into sectors with a seamless end-to-end service offering and a broad product portfolio, by developing bestin-class operational capabilities.”

For more information about DHL Global Forwarding - Sub Saharan Africa visit: www.dhl.co.za

BE Transport & Logistics | 129

Forward thin

Pradeep Kumaar, head of the Commercial division and sa SSF is expanding to meet the needs of its multi-national c

130 | BE Transport & Logistics

nking

Super Star Forwarders (SSF)

written by: Will Daynes research by: Paul Bradley

ales, discusses how corporate clients

BE Transport & Logistics | 131

F

rom its head office in Dar-esSalaam, Tanzania, Super Star Forwarders (SSF), has been an ever present within the transportation sector since its establishment in 1991. Initially a small general cargo haulage business, the company has grown considerably in the 22 years since, to the point where it is today recognised as being a major transport logistics solution provider and among the leading hauliers of containers, equipment, fuel and general cargo in the East, Central and Southern Africa regions.

One of the things that sets SSF apart as being leaders in their field is the sheer size of their fleet of trucks that operate primarily within Tanzania, Kenya, Uganda, Zambia and DRC, and are at the heart of the company’s ability to provide customised transport solutions to a host of multi-national companies including Total, Puma Energy and Trafigura.

“While our fleet is already large in size,” explains Pradeep Kumaar, head of the commercial division and sales, “it continues to grow, with new additions in the coming weeks set to take it in excess of 180 vehicles.”

The fact of the matter, as Kumaar goes on to highlight, is that as market segments throughout the region continue to grow so too does the demands for accomplished, proven vehicle operators. “The market at present is, for a lack of a better word, somewhat unorganised. The increase in demand for vehicles and transport providers has led to an influx of older trucks entering the market.

While these companies are attracting some business, the larger corporate organisations are unable to work with them because they

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Super Star Forwarders (SSF)

Specialised Services for Specialised Brands Southern Cross Motors was Launched in August 2005 taking over from the trading name Marunauchi Motors. Southern Cross Motors is the only authorised distributor of Mercedes Benz, Chrysler / Jeep, Mitsubishi Vehicles / Fuso Trucks and GWM Vehicles in Zambia.

Tel: +260 211 214778 +260 211 214287/8 Email: admin@southerncross.co.zm info@southerncross.co.zm www.southerncross.co.zm

136 | BE Transport & Logistics

STAR FORWARDERS SuperSUPER Star Forwarders (SSF) Super Star Forwarders tempor incididunt uttolabore lack the required operational and safety means the company has been witness those et have dolorepromoted magna aliqua.

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Ut enim ad Duisif aute irure dolor in Tanzania’s landlocked neighbouring countries states. “Meanwhile, you look at particular minim veniam, quisKenya, nostrud reprehenderit voluptate including Zambia, Malawi, Uganda, countries, Zambia and DRC for in example, the exercitation ullamco laboris velit esse cillum dolore Rwanda, Burundi and DRC. This presence growth in mining has contributed significantly nisi ut aliquip ex ea commodo eu fugiat nulla pariatur. consequat. Duis aute irure Excepteur sint occaecat dolor in reprehenderit in This is a caption this is a caption cupidatat non proident, sunt in culpa qui officia deserunt voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur mollit anim id est laborum. Lorem ipsum dolor sint occaecat cupidatat non proident, sunt sit amet, consectetur adipisicing elit, sed do in culpa qui officia deserunt mollit anim id eiusmod tempor incididunt ut labore et dolore est laborum. Lorem ipsum dolor sit amet, magna aliqua. Ut enim ad minim veniam, consectetur adipisicing elit, sed do eiusmod quis nostrud exercitation ullamco laboris

“One of the things that sets SSF apart as being leaders in their field is the sheer size of their fleet of trucks”

SOUTHERN CROSS MOTORS Southern Cross Motors Limited (formerly Marunouchi Motors) is a motor vehicle distributor that specializes in supply of reliable and affordable vehicles.Southern Cross Motors is the official franchise holder of Mitsubishi, GWM, Mercedes Benz, Freightliner, Chrysler, Jeep, Dodge, Fuso Trucks and Buses in Zambia. We offer comprehensive back up for all our products through the spares department and workshops located on our premises.

We have a team of highly competent, qualified and experienced staff. Southern Cross Motors limited has full after sales support facilities with technicians/ mechanics that undergo regular refresher

training courses by brand manufacturers.

Our Service workshops are recognized as the market leaders in the country.

To meet our customer’s service requirement, we have a mobile service workshop; a fully equipped service van that travels throughout Zambia, providing mobile service. We also have a recovery vehicle van that attends to any of our clients at a moment’s notice.

E. info@southerncross.co.zm www.southerncross.co.zm

BE WEEKLY| 137 |1 BE Transport & Logistics

Scania Tanzania Ltd.

SCANIA VEHICLES Transport solution in Tanzania In Tanzania, the presence of Scania products takes us back to the 1970’s, when 200 units of Scania tipping trucks were brought in the country by the Chinese constructors of the Tazara railway. Soon thereafter the population of Scania vehicles grew significantly and it become necessary to set up a sufficiently dimensioned service company with well equipped workshop and proper spare parts supply. In 1973 Scania Tanzania was established as a wholly owned subsidiary of Scania CV AB with headquarters in Sweden and was made a sole authorized importer and distributor of the full range of Scania products in Tanzania. Scania Tanzania Ltd offers you the widest range of services connected to your Scania product, from financing to fully equipped workshops with trained technicians. The company head office is in Nyerere road Dar es Salaam with branches currently at Arusha, Mwanza and Dar es Salaam and Parts outlets in Tanga, Mbeya, Tabata and Ubungo at the corner of Sam Nujoma road and Morogoro road.

Scania operates in some 100 countries and has 37,500 employees. Of these, 3,300 work with research and development – mainly in Sweden, close to the company’s production units. Scania’s corporate purchasing department is supplemented by local procurement offices in Poland, the Czech Republic, the United States and China. Production takes place in Europe and Latin America. In addition, about 20,000 people work in Scania’s independent sales and service organisation.

Scania should contribute to sustainable economic growth, for the company, our customers and society at large. As an industry leader in sustainable efforts, Scania works together with governments, customers and organisations to provide reliable energy-efficient products and solutions that increase customer efficiency and contribute to a more sustainable society.

www.scaniatz.com

mix telematics A performance-driven strategy for fleet owners in Africa – as proposed by MiX Telematics and Superdoll According to a Frost & Sullivan report on green telematics in May 2009, up to 62% of operating costs can be influenced by the implementation of an effective fleet management system.

MiX Telematics – in collaboration with partners like Superdoll in Tanzania – aims to help fleet owners take advantage of this notable opportunity.

“Together, we place a priceless offer on the table,” says Steven Sutherland, Sales Director of MiX Telematics (Africa Fleet Solutions).

“While MiX Telematics is a global leader in fleet management, driver safety and vehicle tracking solutions, Superdoll is one of the largest trailer manufacturers and automotive product distributors in East, Central and Southern Africa.”

By providing customers with real-time information on where their mobile assets are, where they have been and how they are being driven, MiX Telematics enables them to make

informed and timely decisions that affect the performance of their fleets.

A huge breakthrough was the launch of Trailer Tracking by MiX Telematics, which enables customers to be fully aware of the locations and activities of their trailers – whether they’re stationary or on the move. “Not being in control of their trailers and the attached high-value or highrisk loads has always presented a huge risk to fleet owners,” says Sutherland.

“Whether it’s a bus, truck, van or trailer, we help our customers to improve vehicle utilisation, optimise route planning and efficiently manage service and licencing schedules. Functionality like this helps them to lower their costs and increase vehicle uptime,” he says.

MiX Telematics customers also achieve an average saving of 10% on their fuel costs. This is partly done through the identification and correction of poor driving habits like harsh acceleration, over-speeding and excessive idling.

www.mixtelematics.com

Super Star Forwarders (SSF)

Defensive training in progress

to the rise in demand for transportation and logistics services. Due to its port facilities, Tanzania is very much an export gateway for a number of African countries and as market sectors such as mining grows in our landlocked neighbours we are seeing a great deal of demand for services that can help take a company’s products away to the port in order to be shipped out to overseas customers.”

One of the more recent developments to

occur within the company is its move to expand its presence in Zambia. “Our plans for Zambia,” Kumaar says, “represent the next phase of our aim to grow throughout Central Africa. For its part, Zambia knows that in order to grow in needs to be able to export to places like Mozambique and South Africa, and recognises that the best way to do so is through Tanzania.

As copper production levels and copper values continue to increase so too does the importance

“SSF has been responsible for introducing some of the industry’s most innovative and important technical solutions to the African market” BE Transport & Logistics | 141

bank of africa - tanzania BANK OF AFRICA - TANZANIA is delighted and honored to be recognized by Superstar Forwarders as one of their key partners in business and a contributor to their ’ growth.

The Bank has played a significant role in Superstar Forwarders’ growth over the last 10 years. This partnership is expected to become even stronger following their regional expansion to Zambia.

BANK OF AFRICA - TANZANIA has a suite of financial solutions for medium, large and multinational corporate clients and individuals. The offerings for corporate clients are based on complete corporate banking packages which cover our customers’ needs with much emphasis placed on building healthy and longlasting business relationships that result into potential growth of balance sheets and profitability for the customers. Other corporate offering include Cash and liquidity management services, various credity facilities and international trade finance which enhances trade potentials. The Bank

also delivers highly structured and multi currency syndicated investments deals for enormous projects and Asset financing BANK OF AFRICA – TANZANIA is part of the BANK OF AFRICA Group which has grown significantly over the last 30 years.

The group’s strength and big size in the sub-Saharan banking sector is a key characteristic. Our consolidated figures as at December 2011 show a balance sheet size of approximately EUR 3.8 billion and deposits higher than EUR 2.9 billion.

BANK OF AFRICA, started from “scratch” in 1982 in Mali, now consists of a network of 20 companies involved in banking and financial activities and is operational in 16 countries in Africa and France. The Group has a strong network of more than 4,500 staff at your service, 450 automated teller machines and approximately 1.2 million bank accounts. www.boatanzania.com

Super Star Forwarders (SSF)

A snap shot from safety training

of doing business with and in Zambia. This help create a greater degree of transparency, presents an excellent business opportunity on which allows our customers to see just how which we wish to capitalise on.” it is we handle their goods.”

In recent times SSF has gradually built itself SSF has made considerable efforts to a reputation for being an industry pioneer. establish responsible standards throughout From its very first few years in existence its operations. These include the scheduling the company had Global Positioning System of allocated 30 minute breaks for all drivers technology placed within all of its vehicles, who have been on the road for four hours in something that was upgraded in 2005 when order to combat the effects of fatigue. The company also has in place a it embarked on a programme of installing on-board maximum driver speed limit computers into its trucks. of 80 kilometres per hour.

“T hese on-board Both of these important measures can be monitored compute r s,” Ku m a a r by its on-board computers, enthuses, “provide both meaning that any violation of ourselves and our clients Vehicles that make the rules can be dealt with in with all manner of safety up SSF’s fleet a timely manner. and efficiency reports, and

180+

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Super Star Forwarders (SSF) SSF has been responsible for introducing some of the industryâ&#x20AC;&#x2122;s most innovative and important technical solutions to the African market. The most recent being the Alcolock system, an ergonomically designed breathalyser that must be breathed into prior to a driver starting the engine of a vehicle.

Should an alcohol level over an agreed amount be detected the vehicle will not start.

While such devices are widely available in Europe they are still relatively rare in Africa, so it is testament to SSF that it is one of the first companies to bring them to market.

In conjunction to its embracing of technology and innovation, SSF also delivers comprehensive in-house training to all of its employees, particularly its drivers, mechanics and engineers. This training is provided by a department headed up by a Swedish expert who has been certified by APTH France, an institute endorsed by a consortium of fuel companies including Total, BP and Shell.

As SSF continues to pursue its own expansion targets, Kumaar is clear what the company has to do to retain its leading position within its field. â&#x20AC;&#x153;It is important for us to maintain the highest possible level of service, while at the same time embracing new technologies and innovations. The market around us continues to change on an almost daily basis, yet I am sure that what we have achieved over the years as a business has put us in the best position to grow alongside it.â&#x20AC;?

For more information about Super Star Forwarders (SSF) visit: www.superdoll-tz.com

BE Transport & Logistics | 145

Two giants

unite

How, over the course of two decades, a small, family-run business has been able to transform itself into a leading international logistics provider

written by: Will Daynes research by: Paul Bradley

146 | BE Transport & Logistics

Berco - an Aramex Company

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Berco - an Aramex Company

T

ake a look back through history and you will find that the plot of many of the greatest stories ever told revolve around a protagonist who, from humble beginnings, goes on to achieve great things. It is equally true to say that some of the most incredible business stories share the same theme, with a great many today originating from the rapidly developing economic backdrop that is Africa.

Founded in 1992, Berco Express began life, like many other companies, as a small, family-run business, focused on delivering courier services between Johannesburg and Cape Town. By fully embracing its own mantra of delivering constant, never-ending improvement, the company grew organically over the subsequent years to the point where it now boasts a total of 16 branches and three warehouses across the country.

“In 2004”, explains van der Velde, “we decided to embark on taking the business to a completely new level in terms of offering a much broader range of services including active warehousing, clearing and forwarding, domestic and international courier services.”

Steadily expanding through the market, Berco Express would go on to establish its branches in several main centres of commerce as well as key second tier centres such as Rustenburg and Kimberley. It was then in 2011 that it was acquired by the Dubai listed global organisation, Aramex.

Founded in 1982, Aramex today employs more than 12,300 people in 353 locations, across 60 countries. A leading global provider of comprehensive logistics and transportation solutions, the range of services offered by

BE Transport & Logistics | 149

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Risk Specialties: Aviation & Aerospace, Casualty, Employee Benefits, Environmental, Financial Risk Products, FINPRO, Marine, Product Recall, Project Risk, Property, Mergers & Acquisitions, Surety, Trade, Credit & Political Risk.

MARSH ARE PROUD OF OUR LONG ASSOCIATION WITH BERCO MARSH AFRICA www.marsh-africa.com | 011 060 7100 An authorised financial services provider | FSB/FSP: 8414

BERCOCompany EXPRESS Berco - an Aramex

MARSH March is the premier global professional services firm providing advice and solutions in risk, strategy and human capital.

Through our market leading brands, colleagues in more than 100 countries help clients identify, plan for and respond to critical issues and risks.

Marsh is a world leader in delivering risk and insurance services and solutions to clients.

It provides global risk managament, risk consulting, insurance broking, alternative risk financing and insurane programme management services for businesses, public entities, associations, professional services organisations and private clients. Marsh is organised by client, industry, and risk categories to facilitate the global delivery of tailored products and services covering a wide spectrum of risks.

The extraordinary power of Marsh Africa lies in its local and global resources. The local knowledge and expertise of Marsh Africa are complemented by the gobal capabilities and significant network of correspondent brokers to provide clients with a seamless service offering to meet their local and worlwide needs. Marsh Africa has adopted a structure which ensures client focus and delivery of the appropriate services to the various client segments in which we operate.

Marsh South Africa are proud to be the broker of choice of Resgen.

Marsh are also appointed to the parent company in Australia

Resource Generation.

The Mining and Metals division of Marsh South Africa consist of a total complement of 23 staff and are the appointed brokers to most of the major mining houses in South Africa. This includes Gold, Platinum and Coal and include a number of Global Programmes involving the local and international insurance markets. Marsh are involved in arranging the insurance for the entire coal mine project from the Marine insurance for importing the equipment, construction of the processing plant and the permanent insurance once the coal mine is operational. www.marsh-africa.com

BE WEEKLY| |1512 BE Transport & Logistics

RBS Berco Express and RBS have enjoyed a longstanding business relationship spanning more than ten years. Berco’s clients rely on them to deliver their goods on time and accordingly, Berco, relies on RBS to ensure that the appropriate coverage is in place and sound risk management is implemented to avoid interruption to their business processes. This means a meticulous approach to managing their insured items and a quick turnaround time on claims that they may have. Having a strategic insurance business partner like RBS is key to Berco’s on-going success.

RBS is one of the largest insurance brokerages in South Africa. They specialise in personal and commercial insurance products including a number of specialist products that they have designed specifically for marine,

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property, financial lines and construction insurance. RBS insures a number of South Africa’s Top 300 companies. Their competitive advantage stems from developing complete, scalable solutions for clients, rather than finding the ‘next best thing’. “It has been our core value since we first opened, says CEO Michael Petersen.” We started this business because we saw a need for custom solutions as every business and individual is different.”

RBS’s clients can choose from a large stable of insurance and insurance related products and services, managed by a carefully selected team of 130 people that include a number of industry experts.

E. info@rbs.co.za www.rbs.co.za

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Berco - an Aramex Company

An Aramex courier

Aramex includes international and domestic along the way to become what we are now, express delivery, freight forwarding, logistics which is a fully fledged logistics provider, and warehousing, records and information linked to a big global player that itself has management solutions, e-business solutions, the fifth largest worldwide network.” and online shopping services.

The expansion of various industry sectors in A founding member, and chair, of the Africa may no longer be breaking news, but it Global Distribution Alliance (GDA), Aramex remains the core driver for growth in the region leads a strong alliance of over 40 express and and is the biggest contributing factor towards logistics providers from around the world, each Berco – an Aramex Company’s on-going success. specialising in their own region and together “In addition to the fact that today you have an ever increasing number of covering the world with the same, unified quality standards companies looking to sell their and technology of Aramex. goods or services in Africa,” “We have certainly come van der Velde states, “you also a very long way from being have a booming mining sector a small family business,” on the continent that is having The year the company an extremely positive impact van der Velde continues, was acquired by Aramex on companies like us.” “transforming ourselves

2011

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Provider of wholesale express services to courier and freight companies wishing to reliably deliver into and out of Africa

3 Strictly Wholesale 3 African Specialist 3 Courier Express 3 Heavy Weight Courier 3 Cross-Border Road Freight 3 Airfreight 3 Ocean Freight Johannesburg: +27 11 974 2585 Cape Town: +27 21 385 1690 | London: +44 1753 685 853 info@africannetwork.com | www.africannetwork.com

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Where the company also excels is in the e-commerce sector, where Berco – an Aramex Company is recognised as the leading courier company. “We certainly have a strong focus on this part of our business, which continues to gather pace at an extraordinary rate,” van der Velde says.

Increasing at a similar rate is the movement within South Africa to outsource warehousing.

“We have definitely seen a big rise in demand for this type of service,” van der Velde enthuses, “in fact, we are at a stage today where just as quickly as we get a new warehouse up and running, we have it filled to capacity. The reason for this is very simple and that is that people don’t have a desire to manage their own warehouses. What they do want is to outsource this service and do so to experts who possess

Berco - an Aramex Company

An Aramex delivery vehicle

â&#x20AC;&#x153;The company has always maintained a core belief that in order to prosper one has to have the right people in the right positionsâ&#x20AC;? the right software and equipment, who are proficient at maintaining stock controls and who have a proven track record when it comes to high quality pick and pack operations.â&#x20AC;?

While much has changed in the 20-plus years that Berco has been around, it has always maintained a core belief that in order to prosper one has to have the right people in the right positions. This belief is shared in Aramex and the company considers several core factors when

it comes to recruitment, focusing specifically on bringing on board individuals with energy, passion and the desire to stretch their wings.

Each year the company makes a concerted effort to recruit a number of individuals fresh from completing honours degrees in logistics.

This past year the company brought eight people into the business following a lengthy, near six-month selection process. These eight people, like many before them, were then

BE Transport & Logistics | 155

Fork lift driver in the logistics centre

Berco - an Aramex Company given a single mission and that was to take the company’s business model and turn it on its head, by coming up with new ideas, new ways of bringing added value to its customers and ways to improve the company’s own internal operations.

“These young graduates,” van der Velde highlights, “come into the business with fresh, innovative ideas and we provide them with the platform and the opportunity to make an impact on how this business works.”

Determined to make 2013 as profitable a year as the last several before it, the company is particularly excited about its upcoming launch of a new portal that will allow customers to transact with international e-commerce companies. This solution will allow these people and businesses to shop in places like Dubai, China, the US and Europe, while at the same time allowing companies to bring their goods and services into South Africa in a much more effective way than previously available.

June 2013 will also see the company adopt the new name Aramex South Africa.

“Something that is very important for us,” van der Velde concludes, “is that in little over two decades we have not only managed to establish a very healthy footprint in South Africa, but now, with Aramex, we have established offices throughout Africa.

Our plan now is to continue to build on our previous successes and expand further across Southern Africa in the very near future.”

For more information about Berco – an Aramex Company visit: www.bercoexpress.co.za

BE Transport & Logistics | 157

158 | BE Transport & Logistics

Chantier Davie

More than shipbuilding Davie is more than just Canada’s largest shipbuilder – more than any kind of shipbuilder: its ability to provide end-to-end turnkey solutions and its strategic location makes Davie an ideal partner for a range of industries from oil & gas to defence

written by: John O’Hanlon research by: Celina Bledowska

BE Transport & Logistics | 159

Chantier Davie

T

he Davie shipyard at Lévis, just director of that company and Davie’s present across the Saint Lawrence River CEO Alan Bowen, conducted a thorough due from Quebec City, traces its origins diligence exercise before committing to their back to 1825 when it was founded bid, which was accepted in November 2012. by an English sea captain called The yard has had many different owners, Allison Davie. Over its long lifetime it has but none with the experience this team built more than 700 vessels and drilling and had in working with investment companies production platforms and seen shipbuilding and turning around distressed shipbuilding technology develop from wood and sail. During assets. “Before we bought Davie we spent World War II, Davie built 35 warships (mine about nine months actually at the shipyard sweepers, corvettes and destroyers). Davie has with a team of about ten people with a mixed also fabricated numerous other products for a set of skills – technical, legal, commercial, variety of industries including financial, operational and power, defence and transport. the like – looking to see what It is not altogether clear had gone wrong before, and how we could make it better.” how Davie got into such Ultimately, he points out, a mess, culminating in its failure to be selected for the Davie is the largest shipyard Canadian Government’s $33 in Canada, one of the biggest billion National Shipbuilding in North America, and one Cost of each vessel Davie Procurement Strategy (NSPS) of the largest general steel is building for Cecon in 2011. Not for the first time fabrication sites with coastal in its long and largely very access in Canada. It may not distinguished history it had been rescued from have built a ship since 1997 but it has completed administration, this time by a joint venture some very big projects, equivalent in scale to a between the leading Canadian engineering new build, including the conversion of LASH group SNC Lavalin, a Korean shipbuilder and carrier to a DP pipelay vessel as well as a major the Canadian Upper Lakes Group. However upgrade for a Petrobras semi-submersible when it failed to get any part of the major production platform to almost double its defence business these backers pulled out and production capacity. the provincial government of Quebec, which One of the things that gave ZM Industries had been putting money into the yard to keep an edge over its competitors – and there were it ticking over, was again left with the problem several heavyweight international groups of what to do with it. involved in the process – was its singleThere followed a period of uncertainty, minded commitment to the acquisition, culminating in the purchase of Chantier Davie Vicefield thinks. “We took a big risk by Canada Inc by ZM Industries, an O&G service dedicating a significant amount of resource group. The ZM team led by Alex Vicefield, a to the project, commissioning environmental,

$170

million

BE Transport & Logistics | 161

legal, operational and management studies and getting vendors in at an early stage to see where improvements could be made. I think that stood us in good stead during the bidding process.” One of ZM’s core competencies, he adds, is its project management experience.

Just before the purchase of the Davie yard the company had completed the $100 million conversion of the oilfield installation ship Sampson to a pipe-laying vessel. By giving the job to the Viktor Lenac yard in Croatia, itself just out of bankruptcy, he says, the job was done to international standards of quality, at the lowest possible cost: the high risk was offset by putting together a team of experts from within the group and running the project on best yard management practice.

With unequalled skills and all the scale necessary, Davie was nevertheless stuck with some outdated systems and practices.

The biggest change has been a radical change in the manner of working there, says Vicefield. “Previously they were doing ‘build by discipline’, which meant that teams of electricians, welders, pipe-fitters and so on would be working simultaneously across the whole ship. During the due diligence we noted that was causing a lot of reworking.

We changed that to a ‘work zone’ and ‘work package’ approach. For each work package we separate the ship into zones and have a zone manager responsible for each. That allows us

to keep real time control of the build and it is a more accurate way of measuring progress than simply counting the man-hours spent.

This way we can record the work packages as they are completed: it is much more accurate.”

Another major departure was to install an RFID system throughout the yard, working in parallel with the shipyard management system that covers all functions from procurement to workflow management, financial controls, health and safety and HR. Workers had been used to using paper clock-in tickets: now they

“When the opportunity came up to buy the shipyard we jumped at it” 162 | BE Transport & Logistics

Chantier Davie

The senior management team

have RFID swipe cards, and The contracts were worth the completion of every work something in the region of package is logged in real time. $170 million each - a major In addition to its knowledge headache for Cecon that first of shipyard management one brought Alex Vicefield and ZM into the picture: “They were of ZM’s key strengths was the financially heavily reliant on ability to unpick the complex Davie’s weekly steel financial involvement of the those ships being delivered,” construction capacity he says. The financing that several interested parties.

Davie is of strategic important had been arranged with major to the provincial government international bondholders and the federal government but also to the had to be restructured, and Vicefield was owner of the three vessels that were already appointed to the Cecon board to represent under construction in the yard. The Norwegian these bondholders’ interest. “When the offshore and subsea installation contractor opportunity came up to buy the shipyard we Cecon had contracted three specialised vessels jumped at it because we knew that it was a for pipe-laying, installation ROV and seismic unique facility in terms of the O&G business, work in 2007 but in 2010 work was suspended. let alone its other potential.”

300

Tonnes

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As legal counsel to Davie Canada Yard Inc., we understand the complex legal and practical issues that present unique business, regulatory and legal challenges to our clients of the Transportation industry as well as the Oil and Gas industry.

For further information, visit blg.com or contact: Marc Babinski | 514.954.2566 | mbabinski@blg.com Marc Duchesne | 514.954.3102 | mduchesne@blg.com

Calgary | Montréal | Ottawa Toronto | Vancouver | Waterloo Region Lawyers | Patent & Trade-mark Agents Borden Ladner Gervais LLP is an Ontario Limited Liability Partnership.

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Naturally the first priority was to restart the work in progress on the three ships awaiting completion. The sale of Davie to ZM Industries in December followed by the completion of a $280 million financing agreement with York Capital Management on 20 February this year came as a huge relief to the shipowner. The first vessel, already 80 percent complete, will now be delivered by November of this year.

The other two will follow in 2014.

With the business secure, other pending projects could go ahead. As we said, Davie has over the years been a strategic asset to the Quebec government. On May 16 its ferry operating agency La Société des traversiers du Québec (STQ) was able at last to confirm its order for two dual-fuel LNG ferries to operate on the St Lawrence River. Each 92 metres long,

Chantier Davie

A vessel under construction

these vessels will have over 625 lane metres across two decks, allowing the transport of over 115 vehicles, 200 passengers and ten heavy goods vehicles. The dual-fuel LNG engines, an environmentally friendly choice, are a perfect fit with Davie’s specialisation in advanced propulsion and vessel manoeuvring systems says Vicefield. “We come from the O&G sector where you build vessels with unique designs rather than churning out

commoditised vessels. This allows us to play on our core skills in specialised propulsion systems and unique designs.”

Alan Bowen, the CEO of Davie is a global authority on dynamic positioning (DP) systems, he adds. The vessels being built for Cecon are to be equipped with DP3 dynamic positioning systems, the highest grade with least two independent computer systems and a separate backup system. It’s one of the reasons why ZM

“We come from the O&G sector which allows us to play on our core skills in specialised propulsion systems and unique designs” BE Transport & Logistics | 165

was undoubtedly a better owner for this yard than any of the large Asian shipbuilders that had expressed an interest. Such companies are versed in the production of commoditised tankers and container ships whereas ZM has brought in the know how associated with the specialised, highly customised vessels needed increasingly by the hydrocarbon sector, as well as defence and even fishery customers.

Among the residual equipment at the yard is the commencement of a project to build two

accommodation vessels for 400 personnel – also with DP as an important part of the spec.

That project was stalled when the original client went bankrupt, but Davie is now planning to build these and either operate them on its own account or lease them out.

“The market for vessels of this kind is very strong at present,” he says.

Losing out on NSPS was undoubtedly a kick in the teeth for Davie, but the situation is different now. The yard that was chosen is much smaller

“We have never been to a shipyard where we have seen such high quality workmanship in welding and the other key shipbuilding skills”

Working below decks

166 | BE Transport & Logistics

Chantier Davie

The fabrication workshop

capacity than Davie, with a steel construction capacity of around 70 tonnes a week against Davie’s 300. Nevertheless there is still a lot of defence work to be contracted out, and in any case NSPS would have tied up the shipyard for many years to come, which may not have been the ideal situation for a company that could still mop up much of the requirement for auxiliary naval vessels, and in the immediate future the coastguard fleet and O&G exploration vessels. As the only Canadian shipyard with the capacity to take on these requirements it has a strong competitive advantage: if anyone wants to operate in Canadian waters for over a year the vessel has to be registered under a Canadian flag, meaning being built in Canada – or pay an import tax of 25 percent!”

Alex Vicefield is clearly enthusiastic about

the future for Davie. Under the Plan Nord Quebec is investing $80 billion in developing mining, fishing and energy industry in the north of the Province. “We are working with the government of Quebec to meet some of the needs of that infrastructure development,” he says. “And the quality of the workmanship here is nothing short of unique. We have never been to a shipyard where we have seen such high quality workmanship in welding and the other key shipbuilding skills. This is the best deal we have ever done, and I’d say our problems now are all high quality ones!”

For more information about Chantier Davie visit: www.davie.ca

BE Transport & Logistics | 167

168 | BE Transport & Logistics

PortMiami

Welcome to America It is easy to see why PortMiami has earned the nickname, the Cargo Gateway of the Americas

written by: Will Daynes research by: Adam Kalynuk

BE Transport & Logistics | 169

Cruise ship at the port

PortMiami

M

other Nature has shown time and again that she possesses the power to both amaze and terrify in equal measure.

Nevertheless, what we have also seen on numerous occasions in the past is that mankind has the ability to take the most disastrous of events and turn them into something positive.

Such an event occurred in the early 1900s in the south-eastern United States, when a particularly powerful hurricane struck the city of Miami. Such was the devastating force of this storm that it split the southern end of Miami Beach, creating what would become known as the Government Cut shipping channel and Fisher Island.

Shortly after the hurricane the cut was dredged creating new access to the mainland through what became known as the Main Channel. This ultimately led to a huge improvement in shipping access to the existing port. In the decades that followed the port grew in size as shipping access continued to improve and the South Florida community expanded in size and range.

It was on 5 April, 1960, that the Dade County Board of Commissioners approved Resolution No. 4830, â&#x20AC;&#x153;Joint Resolution Providing for Construction of Modern Seaport Facilities at Dodge Island Siteâ&#x20AC;?, which was subsequently approved by the City of Miami the following day. It was this landmark event that gave way to the construction of the new Port of Miami.

Construction of the new port, located on the artificially created Dodge Island, began shortly thereafter with the island itself also being expanded and linked to others in

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the general vicinity. The undertaking itself was a massive task, one that involved the construction of new seawalls, transit sheds, administrative buildings and a new vehicle and railroad bridge.

Today, PortMiami, as it is now officially known, is recognised as one of the busiest container ports in the United States.

Accounting for more than 207,000 jobs and with an annual economic impact in Miami of some $27 billion, the port is also referred to in the maritime sector as the “Cruise Capital of the World”, with one in seven of all the world’s cruise passengers starting their journeys at the port. Indeed, in 2010 a record 4.33 million passengers travelled through the port.

For well over two decades the port has

PortMiami

Cranes and container terminal

retained its status as the number one cruise/ passenger port in the world, accommodating the largest cruise ships in the world and the operations of many of the worldâ&#x20AC;&#x2122;s largest lines including Carnival, Royal Caribbean and Norwegian Cruise Line. In catering for such visitors the port currently operates eight passenger terminals, six gantry crane wharves, seven Ro-Ro docks, four refrigerated yards for containers, break bulk cargo warehouses

and nine gantry container handling cranes.

Retaining its competitive edge as a world-class port has not been an easy task for PortMiami and has required considerable investment over the years. In 1997 the port underwent a comprehensive redevelopment programme at a cost of more than $250 million.

As part of the programme, new ultramodern cruise terminals, roadways

â&#x20AC;&#x153;Construction on the Miami Port Tunnel, a $1 billion project that will connect the port to other major highway arteries began in May, 2010â&#x20AC;?

BE Transport & Logistics | 173

“the Port of Miami Deep Dredge project could double Miami’s cargo business in the next ten years as well as creating over 30,000 permanent jobs”

Presidant Obama’s visit to PortMiami

174 | BE Transport & Logistics

PortMiami and parking garages were constructed. Additionally, a new gantry crane dock and container storage yards were introduced along with the electrification of the gantry crane docks to include the conversion of several cranes.

In addition, the Port acquired two state-of-the-art super post-panamax gantry cranes which are amongst the largest in the world and are able to load and unload 22 container (8 foot wide each), or nearly 200 foot, wide mega container ships. This development will contribute towards making it possible for PortMiami to facilitate even the future largest containerships in the world, the Maersk Triple E Class.

As we look at PortMiami today there are several major infrastructure projects relating to the port which are all scheduled to be complete by 2014. These include the Port of Miami Tunnel, the Port of Miami Deep Dredge Project and the restoration of the bridge and rail line connecting the port to the mainland.

Construction on the Miami Port Tunnel, a $1 billion project that will connect the port to other major highway arteries began in May, 2010. Meanwhile, the Port of Miami Deep Dredge project is one of considerable importance, seeing as its construction will allow Super Post-Panamax Megaships to

Aerial view of the Miami Port Tunnel

enter the United States after the completion of the Panama Canal expansion in 2014.

With the correct funding, the Port of Miami estimates that it is capable of completing such a project by 2014. It is also estimated that this project could double Miamiâ&#x20AC;&#x2122;s cargo business in the next ten years as well as creating over 30,000 permanent jobs for the city.

For more information about PortMiami visit: www.miamidade.gov/portmiami

BE Transport & Logistics | 175

A gatewa

A sub beh America

176 | BE Transport & Logistics

LLX (Açu Superport Project)

ay to the future

bsidiary company of EBX Group, LLX is the driving force hind the development of the Açu Superport, one of Latin a’s most important investment projects in recent history

written by: Will Daynes research by: Abi Abagun

BE Transport & Logistics | 177

LLX (Açu Superport Project)

W

ith a population of just facilities, mainly in the port sector. LLX’s over 30,000 people and ventures are strategically located and are a total area of some designed to handle the largest vessels, using 459 square kilometres, the latest port technology, thus resulting in São João da Barra may efficient and low-cost operations. not be as recognisable as some of Brazil’s A total of R$4 billion will be invested in other municipalities, however it is the Açu Superport, of which R$1 billion is being location of one of the country’s most exciting provided by LLX Minas-Rio (responsible for developments, the Açu Superport, the largest implementing the iron ore port terminal) port infrastructure investment project in all and R$3 billion by LLX Açu (responsible for of Latin America. handling other cargo such as steel products, With two terminals, one offshore and petroleum, coal, granite, slag, pig iron and one onshore, the Açu Superport is a private, liquid and solid bulk). mixed-use port complex Building of the Açu that will eventually boast Superport began back in 17 kilometres of piers and up October 2007. Occupying to 47 mooring berths. It is a total area of 90 square being built on the northern kilometres, the complex Rio de Janeiro coastline, will have an initial depth near the area responsible for of 21 metres, which will be 85 percent of Brazil’s oil and expanded to 26 metres, and Total investment being the capacity to receive large gas production. made into the Being an innovative vessels. At present only Açu Superport project boasting modern seven percent of Brazil’s engineering, construction ports have the capacity to and operating practices, the Açu Superport receive capesize ships. will be comparable with the most modern Upon completion the Açu Superport will and efficient ports in the world. It is being have two terminal complexes. The first, prepared to receive large vessels such as TX1 is an offshore terminal with a depth of Capesize and Very Large Crude Carriers 21 meters, a three kilometre access bridge, (VLCCs), which carry up to 320,000 tonnes a tugboat pier, nine oil and iron-ore piers, of cargo, and Chinamax vessels carrying up approach channel and turning basin. Of these, two iron ore piers, the tugboat pier, to 400,000 tonnes.

The principle company behind this approach channel and turning basin are extensive development is LLX, a logistics completed. Once operational TX1 will be company of EBX Group that was founded in able to handle up to 100 million metric March 2007 with a mission to provide Brazil tonnes of iron ore a year and 1.2 million with integrated infrastructure and logistics barrels of oil a day.

R$4

Billion

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The Acu SuperporT projecT in BrAzil

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Boskalis’ track record in South America is already strong. Not only in the ‘business as usual’ projects but especially when it comes to challenging projects like a submerged tunnel and a LNG terminal in Mexico, a total mining solution in Surinam, the construction of the first man-made island in front of Panama City and the installation of a gas pipeline and a communication cable in Tierre del Fuego.

With its major role in the prestigious project at LLX Acu, Boskalis has once again emphatically demonstrated that it is able to successfully manage whatever challenges arise: Challenges related to environmental restrictions, to sudden changes in planning, to working in exposed off shore conditions or related to interfaces with other contractors. We swiftly adapt ourselves, whatever the circumstances.

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Avenida Presidente Vargas 309 (10th floor) Centro Rio de Janeiro RJ 20.040-010 Brazil T +55 21 2121 1042

www.boskalis.com

LLX ACU SUPER PORT PROJECT: MEETING EVERY CHALLENGE For Boskalis, being part of the LLX/OSX project in Brazil has been challenging and inspiring. The entrepreneurial and innovative spirit of the client Eike Batista matches Boskalis’ mentality and work ethic.

LLX Acu Super Port Project is an incredibly dynamic project. Its conception took place quickly and continues to develop rapidly as new customers sign on. To meet the challenge, Boskalis and the Client work closely, with constant communications and transparency – making improvements, meeting deadlines and maintaining high quality while achieving excellent safety performance.

Challenges at LLX Acu Super Port Project included: • A very tight deadline at the start of the project to meet the turtle season. Boskalis solved this through an extremely short mobilization time of the equipment and moving past the beach under unfavorable weather and sea conditions.

• The enormous transportation distance for the dredged material. This challenge was met with almost 20 kilometers of pipeline on location.

• Meeting tight deadlines caused by changes in planning and sequence of activities as the project advances. Boskalis quickly

1 | BE WEEKLY 182 | BE Transport & Logistics

adapts by negotiating with the Client and subcontractors, providing alternative solutions and equipment and streamlining execution.

In total five vessels were mobilized: two jumbo cutter suction dredgers, two large trailing suction hopper dredgers, a clamshell dredger plus supporting marine equipment and dry excavation equipment. Although the numbers vary, between 350 and 450 people are at work at any given moment on dredging the access and inner channels, turning basin and harbor basin as well as land reclamation work. At a later date Boskalis will also construct the revetments at the harbor’s entrance. The total dredged volume will be in excess of 43 million cubic meters, part of which will be used to reclaim land for the construction of the port facilities.

Boskalis’ track record in South America is already strong. Not only in the “business as usual” projects, but especially when it comes to challenging projects such as: • the installation of a submerged tunnel in the entrance channel in Coatzacoalcos, Mexico, the largest oil exporting terminal in Central America; • the reconstruction of an LNG terminal

LLX LLX (Açu Superport Project)

in Cuyutlàn, Mexico, in severe offshore conditions; • a total mining solution in Surinam, where the overburden in the jungle (partly swamp) was removed and bauxite was lifted, including road transport to the refinery.

The required dredge (1800T) was transported by road to the site.

• the construction of the first artificial island

in front of Panama City (see picture); • the installation of a gas pipeline and a communication cable in the remote location of Tierra de Fuego Let’s talk about your challenges……….. we are ready for it! www.boskalis.com

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Sistema PRI Engenharia WE ARE WHEREVER YOU NEED! Management, Supervision and Project Design of Engineering Works Areas of work: Building and Industrial - Public - Commercial - Education - Housing - Hospitals - Hotels - Special Works Transportation â&#x20AC;&#x201C; Infrastructure Highways Railways and Subways Ports Airports Bridges and Viaducts Urban Paving Sanitation and Environmental Water Treatment Sewage Treatment Water Supply and Distribution Systems Sewerage Effluent Treatment Industrial Pollution Control Collection, Treatment and Disposal of Urban Refuse Urban Drainage Energy Hydroelectric Power Plant Dams and Earthworks; Mining; Irrigation Works Thermoeletric Power Plant Transmission Lines Natural Gas Distribution Sucroenergetic Telecommunication Building Communication networks Systems

YOUR ENGINEERING IN BRAZIL

LLX LLX (Açu Superport Project) LLX feature text going et dolore magna aliqua. Ut The other terminal, TX2, here....Lorem dolor sit enim ad minim veniam, quis is an onshore ipsum terminal being amet,around consectetur nostrud exercitation ullamco built a 6.5adipisicing kilometre elit, sed do eiusmod tempor laboris nisi ut aliquip ex long, 300 -met re-w ide incididuntchannel. ut labore TX2 et dolore approach will ea commodo consequat. magnaa wharf aliqua.line Utofenim boast over ad 13 Duis aute irure dolor in minim veniam, quis nostrud kilometres, where liquid and reprehenderit in voluptate exercitation ullamco laboris solid bulk, coal, pig iron, slag velit esse cillum dolore nisi ut aliquipwill ex ea and granite becommodo handled, eu fugiat nulla pariatur. consequat.

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SISTEMA PRI is an engineering consulting company established in 1982, with the objective of providing engineering services in the field of projects, job and enterprise management, planning and general technical studies. PRI stands for “Planejamento Real e Integrado” (Real and Integrated Planning) that designates its own and exclusive management, planning and job control system, created and developed entirely by the company.

Currently with approximately 500 professionals, our team has been developing services in many engineering areas with excellent results. Sistema PRI is highly certified with ISO 9001:2008, ISO 14001:2004 and QUALIHAB Level 6.

The working methodology employed by SISTEMA PRI in the management of jobs and undertakings has been constantly perfected since its foundation, being based on most modern management techniques guided by standard NBR-ISO 10.006:2006 and by the Guia Oficial do Conjunto de Conhecimentos do Management de Projetos - Official Guide of the Set of Project Management Knowledge (PMBOK Guide - edition 2008), published by PMI – Project Management Institute – world leader among professional organizations in the field of project management. www.sistemapri.com.br

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Solução Madeiras Solução Madeiras is a Brazilian company with nine years of experience in building construction prefabricated wood, which is adaptable to different styles, terrain conditions, enterprises that require LEED certification (Leadership in Energy and Environmental Design) and FSC (Forest Stewardship Council). We serve the industrial, infrastructure, metal & mineral, petrochemical and residential industries. The values we apply to ​our work include commitment, safety, interpersonal relationships and attention to sustainability issues. LLX, one of our high level clients, demanded Solução Madeiras’s expertise in order

Commitment and

Products: The company provides a a focus on construction: wood products (plywood

Certification: The major certified by the FSC® (Fo come from managed for

Services: • Prefabricated wood bu ensure comfort, safety places: office, restaura room and sanitary, acc • Prefabricated roof: roo

to build the LLX Açu Supeport´s office.

The success of this partnership was a result of our understanding of www.solucaomadeiras.com.br the client’s needs, coupled with quality and time commitment to the welfare of the professionals involved in the building process of one of the largest enterprises in Brazil. www.solucaomadeiras.com.br

Commitment and quality in line with the environment

Products: The company provides a wide range of wood products with a focus on construction: a wide variety of woods, engineered wood products (plywood, OSB board), treated wood.

Certification: The majority of our wood products are certified by the FSC® (Forest Stewardship Council®) and come from managed forests.

Services: • Prefabricated wood buildings. We design spaces that ensure comfort, safety and speed of assembly. Applied to places: office, restaurants, kitchens, warehouses, dressing room and sanitary, accommodation.

• Prefabricated roof: roof system for industrial wood.

www.solucaomadeiras.com.br

Products FSC® on request

LLX (Açu Superport Project)

and gas production and exploration activities which is now licensed for 1.2 million barrels that exist within the Campos Basin. It is here a day. The OFT will lower the water and salt that approximately 85 percent of Brazil’s total content in the oil by using centrifugation oil and gas production originates. and decantation. The operation enhances The complex has been strategically the quality and the commercial value of the product. positioned to handle and Because of its privileged treat oil, provide support location close to the main oilto offshore exploration and production operations, and to producing basins of Brazil, the house a metalworking cluster Açu Superport is extremely dedicated to the oil and gas attractive for companies Total jobs that the port industry. Furthermore, the operating in the oil and gas and industrial complex will ultimately generate Açu Superport will have an sector, such as OSX, which Oil Treatment Facility (OTF), operates in the offshore oil

50,000

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SUNSET Surveillance and Security is an

established company with over 15 years of expertise in providing private surveillance, armed escort and security services to financial, public and private institutions.

OUR SERVICES INCLUDE: Surveillance personnel: n Armed and unarmed n Dressed in suit and uniform n Entrance control Surveillance and Security for events:

n Punctuality n Technical visits to develop safety and action plans n Commitment to address the particular needs of each event n Communication equipment n Earphones, metal detectors, among others

Consulting:

n Planning of safety n Risk analysis

VIP service: Individual security escorting to schools, airports, personalities, bank visits among others.

Closed CCTV and 24-hour monitoring: n Modern digital technology accessible from virtually anywhere n Systems and alarms integrated with motion sensors and night vision.

Contacts: telephone: +55 21 2568-7114 / 2234-3088 email: administracao@sunsetvigilancia.com.br www.sunsetvigilancia.com.br

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SUNSET SURVEILLANCE AND SECURITY SUNSET Surveillance and Security is an established company with over 15 years of expertise in providing private surveillance, armed escort and security of personalities, services to financial, public and private institutions as well as national and multinational companies. It has a solid operational and administrative structure, formed by a team of qualified employees focused in risk analysis and security plans using with the latest technology to provide a personalized service which meets the individual needs of each client .

Its aim is to deliver high quality services at competitive prices which guarantees its leading position in the market.

Its mission is to protect and ensure the well being of its customers by providing them with the highest

standard of personal and property security.

It works to provide safe and orderly environments and solutions in the area of prevention, acting with strength, reliability and integrity. It provides its personnel specialised trainning by working in partnership with highly regarded training instituitions and regularly evaluates them to ensure the high level of performance is maintained and at the same time treating them fairly and respectifully. As a result, it can offer a unique service to take ensure the safety and peace of mind of its clients.

“WE LOOK AFTER YOUR POSSESSIONS AS WE LOOK AFTER OUR OWN FAMILY”.

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Holanda E N G E N H A R I A LT D A

Phone: +55 024 3355-6047

www.holandaengenharia.com.br

Quality Control, Field Supervision & Consulting • Consulting with focus on durability of structures and prevention of pathologies • Pathologies identification and repairs methodologies • Concrete Quality Control from selection of materials until placement • Quality Control of Soil Structures

Over 25 millions m3 of controlled concrete Through staff trained in laboratory of concrete, soil and rock, we elaborate characterization studies of building materials, experimental concrete dosages and field supervision in control of the works.

Weekly Because a month is a long time to wait...

Your weekly digest of business news and views www.bus-ex.com

LLX (Açu Superport Project) hydraulics, storekeeper, steel HOLANDA fixer and administrative Operating for over 25 years with excellence in the area assistant training. of Quality Control, the experience of the company states A series of initiatives for in major works such as dams, ports, harbors, canals, the fishing community are tunnels, industrial structures, and now proud to be one also being implemented. of the key contributors of the construction of the Latin These include a dentists Americas Largest Port Facility (Açu Superport Project).

Further emphasizing the development and implementation surgery and IT laboratory in of building methods in the area of civil works as well as the fishing community, the the investigation of pathologies including the definition refurbishment of the fishing of repair and recovery systems aimed at durability of offices in Barra do Açu, the structures. refurbishment of schools, We work with quality manuals and procedures the donation of equipment of construction in accordance with the technical to legalise fishing boats, specifications of each work, and in particular in accordance with the standards established by ISO 9001. donation of a head office www.holandaengenharia.com.br for the fishermen’s village, diagnosis of education levels and delivery of navigation kits, with buoys, lifejackets and flags.

On the environmental front, LLX is developing programs aiming to recover and preserve the environment in the region where its ventures are installed. One such program is the Biodiversity Conservation Program, which helps develop applied research for the handling and protection of coastal ecosystems. The program entails initiatives for environmental recovery, area protection and environmental education, in addition to studies conducted by the company itself and supporting scientific research carried out by a number of institutions. One of the program’s flagships is the creation of the Caruara Private Natural Heritage Reserve (RPPN), the largest private reserve in the country, occupying 3,845 hectares.

LL X also invests in initiatives to bolster family-based farming. T he

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LLX (Açu Superport Project) initiatives include the arrangement with the municipal government of São João da Barra and the State Agriculture, Fisheries and Supplies Department of Rio de Janeiro to help small rural producers and associations by building greenhouses in the fifth district of São João da Barra.

The program uses sustainable practices for greenhouse cultivation, adding value to products and rural properties and enabling year-round harvests, in addition to boosting producer income.

In partnership with Companhia de Desenvolvimento Industrial do Estado do Rio de Janeiro (CODIN) and the municipal government of São João da Barra, LLX is building Vila da Terra, a rural housing settlement in São João da Barra. It is here that 90 areas in the location are being allocated to families losing their homes due to the creation by CODIN of the Industrial district of São João da Barra in the municipality.

Relocation to Vila da Terra is being offered to families who are resident in the area and own less than ten hectares of land.

At present more than 7,000 people are working on the port’s construction, 50 percent of whom live in either Campos or São João da Barra. Once operational the port and the industrial complex are expected to generate as many as 50,000 jobs, while at the same time attracting investment of around R$100 billion to the region.

For more information about LLX (Açu Superport Project) visit: www.llx.com.br

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Panama Canal Expansion Program

A global

game changer The expansion of the Panama Canal is the highest profile undertaking in all of Central America and one that is on course to change the world of maritime trade forever

written by: Will Daynes research by: Abi Abagun

BE Transport & Logistics | 195

Panama Canal

C

Lock construction, Pacific site

utting across the Isthmus of Panama, the Panama Canal is a 77.1 kilometre ship canal connecting the Atlantic Ocean, via the Caribbean Sea, to the Pacific Ocean and a hugely important conduit for international maritime trade, providing work markets with a time and cost effective crossing. Indeed the Panama Canal has had a massive transformative effect on world maritime commerce over the year, while from a local perspective it contributes some 20 percent of Panamaâ&#x20AC;&#x2122;s total gross domestic product.

Work on the canal by the French actually began back in 1881, however a series of engineering problems and high mortality rates led to the project falling into US hands in 1904. Ten years later and the project to construct the first two-lane canal and set of locks was complete, thus enabling ships the opportunity to avoid the lengthy, often hazardous, Cape Horn route around the southernmost tip of South American or to navigate the Strait of Magellan.

In 1999 control of the canal was passed on to the Panamanian government who in turn created the Panama Canal Authority (ACP), an autonomous agency tasked with managing the commercial waterway.

Since it was opened in 1914, annual traffic through the canal has risen from around 1,000 vessels per year to 14,702 in 2008.

His meant that in total, to the end of 2008, more than 815,000 vessels have made use of the canal. When you take these figures into account it becomes immediately quite obvious why the focus in recent years has been on

BE Transport & Logistics | 197

Show the world what your company has to offer with our tailored packages

Seen www.bus-ex.com

Panama Canal

Excavation work in progress

expanding the Panama Canal further still.

The project itself will involve building Led by the ACP, the Panama Canal two new locks, one each on the Atlantic Expansion Program (also known as the and Pacific sides (each with three chambers Third Set of Locks Project) is set to double with water-saving basins), excavating new the capacity of the canal by 2015 by creating channels to the said locks, widening and a new lane of traffic, while deepening existing channels and raising the maximum allowing more, larger ships to make use of its waterways. operating level of the Gatun Such ships will include the Lake, a large artificial lake that forms a major part of the new generation of super container vessels, something canal system. that will open the canal up The new locks are 30 Of Panamaâ&#x20AC;&#x2122;s GDP comes to new routes and previously percent larger than the from the Panama Canal untapped markets. existing locks. They are so

20%

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â&#x20AC;&#x153;The work currently taking place at the Panama Canal is very much what industry experts are calling history in the makingâ&#x20AC;? large in fact that you could fit three Empire State Buildings lengthwise inside their chambers. The third set of locks open and close using double sliding steel gates, each of which weighs approximately 3,300 tonnes.

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In order to ensure the sustainable use of water the lock design incorporates the use of three water saving basins per chamber. These basins allow for as much as 60 percent of the contained water to be reused in each transit.

Panama Canal

Artist’s impression of the finished complex

Meanwhile, away from the canal itself, the ACP continues to contribute towards extensive greenfield reforestation projects where, in order to compensate for the land reclaimed for the canal expansion, some 600 hectares of space has seen the introduction of new trees.

This space is also now home to the mammals, birds and reptiles that needed to be relocated once the programme got underway.

The programme of works being undertaken ranks as Central America’s most visible expansion program and the largest project in the canal’s history. It is

expected that over the next two decades cargo volumes moving through the canal will continue to grow at an average of three percent per annum, almost doubling the tonnage volume of 2005 by 2025. It is because of this projected increase in traffic that the canal authority and its partners are proceeding rapidly with an undertaking that will ultimately cost $5.25 billion.

The existing two sets of locks, which raise ships 85 feet above sea level, have so far defined the “Panamax” standard, which limits the size of container vessels to a maximum

BE Transport & Logistics | 201

General view of the Atlantic locks site

Panama Canal

$5.25 Billion Total cost of the expansion program of 5,000 TEU (twenty-foot equivalent units). From 2014, deeper and wider access channels will complement new locks to the southwest of the existing Miraflores Locks on the Pacific side and east of Gatun Locks on the Atlantic side. This will enable the canal to move into the â&#x20AC;&#x153;post-Panamaxâ&#x20AC;? phase of its evolution and accommodate the transit of 13,000+ TEU ships.

As of April 2013, 54 percent of the total expansion project had been completed with both Atlantic and Pacific entrances among the main section of the undertaking to be ready for use. Throughout the project to date the operators gave successfully managed to keep traffic volumes undisturbed despite the huge amount of dredging equipment that has been brought it.

The work currently taking place at the Panama Canal is very much what industry experts are calling history in the making and the expansion of one of the Seven Modern Wonders of the World is sure to be game changing development for traders and consumers the world over.

For more information about Panama Canal Expansion Program visit: www.pancanal.com

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The g M

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Gibraltar Port Authority

gateway to the Mediterranean The Gibraltar Port Authority has worked tirelessly to ensure that the Port of Gibraltar meets the needs of an ever-increasing flow of shipping traffic

written by: Will Daynes research by: Robert Hodgson

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A super yacht berthed in Gibraltarsâ&#x20AC;&#x2122; world famous Ocean Village complex

Gibraltar Port Authority

F

or centuries Gibraltar, with its navigational safety standards whilst at the strategic location at the entrance same time maintaining the efficiency of the to the Mediterranean Sea, was port. The system, manned by the Gibraltar used as a naval fortress. Today Port Authority´s team of VTS staff, has the Rock, located at a crossroads been operational since 2011 and allows for of Mediterranean and Atlantic shipping constant monitoring of all vessel movements lanes, is recognised for its ability to provide both within and outside BGTW. a wide range of services to vessels of all The VTS operates as both an Information sizes and types, and for being a Maritime Service (INS) and Traffic Organisation Centre of Excellence.

Service (TOS) co-ordinating all ships in With over 71,000 vessels transiting the Gibraltar waters from the operations room Strait of Gibraltar each year, the Rock has in the port building. The VTS staff have at become a major bunkering port, the largest their disposal a range of sensors to assist in the Mediterranean, and for years the them in their work, including Radar and Port of Gibraltar has tapped Automatic Identification into the opportunities System (AIS) with coverage stretching many miles out offered by its proximity to one of the busiest maritime to sea enabling them to thoroughfares in the world. check vessel movements Established in 2005, the well before their arrival.

Vessels transiting The VTS operators can also Gibraltar Port Authority’s the Strait of Gibraltar use CCTV cameras with strategy is to build each year night-time thermal imaging on Gibraltar’s unique capability and a radio geographical position and fiscal status and provide a vital link between direction finding facility which accurately all stakeholders to ensure a cohesive strategy pinpoints the source of VHF transmissions. aimed at achieving common goals.

Whilst the system´s primary focus is on The Port Authority’s main functions include navigational safety, allowing VTS operators the monitoring and the control of all vessel to de-conflict movements in the busy BGTW, movement, the provision of security controls it also provides opportunities to maximise the within restricted and controlled zones, the use of the port space for commercial benefit. licensing of port operations, search and In line with international requirements, rescue in British Gibraltar Territorial Waters vessels are required to provide pre-arrival (BGTW) and pollution control. notification giving VTS staff the ability to Gibraltar´s Vessel Traffic Services (VTS) organise vessel movements in advance with has enabled the Gibraltar Port Authority to local companies and thus ensure maximum strengthen its ability to co-ordinate vessel efficiency and minimum waiting times, with movements in BGTW, thereby improving real-time movement information on vessel

71,000

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Nature Port Reception Facilities Ltd

(PART OF NATURE GROUP PLC)

Our Key Services: • Collection of ship’s waste, both ship generated and cargo related • Treatment of ship’s waste, both ship generated and cargo related • Tank storage facility for storing waste or other products • Ship tank cleaning and de-bunkering services • Consultancy services for the treatment of waste • Registered statistical information for port authorities • Pollution prevention

Operations / Shipping Department +350 200 44463 / 200 40869 / 200 50345 Accounts +350 200 45290 / 200 73905 Operations Fax / Accounts Fax +350 200 41218 / 200 50283 Email: enquiries@ngrp.com

Clean seas. Your choice. Our mission.

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Duismix aute irure service a diverse of users.

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NATURE GROUP PLC A company with more than 25 yearsâ&#x20AC;&#x2122; experience in waste water treatment and a unique corporate social responsibility (CSR) strategy that enables us to be truly a part of Nature and responding to the ever expanding and demanding legislative framework.

Nature Group combines port reception services and facilities, offshore treatment services and the latest sustainable waste treatment technologies in a steadily growing global network.

Nature Group is traded on the AIM market, (ticker: NGR) www.ngrp.com

BE WEEKLY| 209 |2 BE Transport & Logistics

Terminal at any time of day or night within an hour of leaving the main shipping lanes of the Strait of Gibraltar.

These cruise ships, and other vessels calling for bunkers - or water for that matter - can be accommodated on both sides of the Western Arm. The outer side is 490 metres long with a maximum draught of 9.6 metres and can accommodate vessels of any length.

The inner side is 450 metres long with a maximum draught of 8.6 metres and can accommodate vessels up to a maximum length of 300 metres. Vessels calling for lay-up or repairs can also berth at the Detached Mole, which is 605 metres long with a maximum draught of 9.1 metres. Two 100 metre berths are available for vessels discharging general cargo.

Gibraltar is the one of the largest bunkering ports in the Mediterranean. In 2011 alone, 4.2 million tonnes of bunkers were delivered to its port, a figure that makes the 0.84 million tonnes delivered in 1990 pale in comparison.

When one considers that of the approximately 10,350 vessels that called at Gibraltar, 6,181 of these were supplied with bunkers, it isnâ&#x20AC;&#x2122;t hard to see why bunkering has become the main activity of the port.

Among the other advantages of the island and its port are its competitive market,

which comes as a result of its high turnover, its competitive port duties, the fact that the market is continuously monitored by the Government to ensure competitiveness and, lest we forget, the low costs associated with doing business here due to its unique tax-free status within European Union.

It is important to remember as well however

â&#x20AC;&#x153;The port has awarded sustainable ships certified by Green Award with a five percent reduction in tonnage dues since the beginning of April 2013â&#x20AC;?

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Gibraltar Port Authority

Gibraltar airport runway

that even as the Port of Gibraltar has grown in size, stature and importance, its operators have maintained the belief that safety and environmental concerns associated with the port continue to be given top priority.

It is with this in mind that the port announced in March of this year its participation in the Green Award certification scheme. For its part in the scheme the port has awarded sustainable ships certified by Green Award a five percent reduction in tonnage dues since the beginning of April 2013.

Green Award’s managing director Mr Jan Fransen presented a Green Award board to Minister Neil Costa, officially making Gibraltar a Green Award port. The ceremony

was hosted by the Port Authority and among guests was Minister for Health and Environment Dr John Cortes.

In his speech Mr Fransen said: “The Port of Gibraltar’s view fits very well with the Green Award’s Philosophy. When such a major bunker port as Gibraltar practices its Corporate Social Responsibility through participating in the Green Award scheme, it does make a difference and motivates safe and environmentally conscious shipping.”

For more information about Gibraltar Port Authority visit: www.gibraltarport.com

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Supporting So

Transnet Port Terminals (TPT) is the South African governmentâ&#x20AC;&#x2122;s ex

written by: Will Daynes | r

212 | BE Transport & Logistics

Transnet Port Terminals ( TPT)

outhern Africa

playing a leading role in making xport-led growth strategy a success

research by: Paul Bradley

BE Transport & Logistics | 213

Aerial view of Durban harbour, South Africa

TPT

I

t was in 2000 that Transnet’s then single port division, Portnet, was divided into separate operations and landlord businesses. It was this decision that led to the creation of Transnet Port Terminals (TPT). Since its formation the business has played a fundamental role in supporting the export-led strategy of the South African government.

Most Southern African import and export commodities are handled through South Africa’s seven logistics ports, Richards Bay, Durban, Saldanha, Cape Town, Port Elizabeth, East London and Port of Ngqura. The Port of Ngqura is the newest of the above ports.

It is here, seven kilometres outside of Port Elizabeth, where a great degree of investment has been made in order to purchase a total of six new cranes and accumulate a large amount of borrowed equipment with the objective of getting the facility up and running quickly so as to meet the expanding demand for imports and exports in the region.

It is at these locations that TPT handles container, mineral bulk, agricultural bulk and RoRo operations. In addition the business also implements logistics management solutions for its container, bulk, break-bulk and car terminal operations. Its major customers meanwhile represent a broad spectrum of the economy and include the shipping industry, vehicle manufacturers, agriculture, timber and forest products, the mining industry and exporters of minerals, metals and granite.

TPT operates container terminals at Ngqura, Port Elizabeth, Cape Town and Africa’s busiest port, Durban, which possesses the southern hemisphere’s largest and best-equipped

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TRANSNET PORT TERMINALS TPT container terminal. Over the course of the last decade TPT has invested large sums of capital in upgrading this specific sector. In 2007 the redeveloped Durban Container Terminal Pier 1 facility, South Africa’s first rubber tyred gantry operation, was launched. Following this was the launch of Ngqura Container Terminal, the state of the art transhipment hub, servicing traffic from the East, South America and West African markets.

Each of TPT’s container terminals utilises the NAVIS system which provides integrated real time shipping information. These terminals are also supported by a call centre

STEFANUTTI STOCKS MARINE Across the African continent and beyond, into the Middle East, one cannot fail to have noticed the activity to build and further develop ports. The economic and social impacts of these often mammoth projects have a positive impact on thousands of lives, creating jobs and infrastructure where none previously existed.

Perhaps less noticeable, is the effort and expertise that go into developing these ports – and in South Africa and increasingly across the whole region, one name has become a byword for quality - Stefanutti Stocks Marine.

Stefanutti Stocks Marine is a division of the Stefanutti Stocks Structures Business Unit, itself a part of Stefanutti Stocks (Pty) Ltd. The holding company, Stefanutti Stocks Holdings Limited is listed on the Johannesburg Stock Exchange.

The Marine Division is responsible for procuring and executing marine construction work for the Structures Business Unit. “We provide work in all aspects of marine business, including the

deepening and widening of docks, rehabilitation of slipways, quay wall construction, jetty construction, ship lifts, breakwaters and pre-cast solutions including EPC work.” says Simon Allen, Managing Director of the Marine Division.

“Within South Africa, probably 90 percent of our projects are for Transnet, the state-run entity which controls the nation’s ports.”

Whilst Transnet projects are open to international bids, Allen says that Stefanutti Stocks has an edge when it comes to selection, because of its reputation for expertise and experience, but also because of its unique standing within South Africa’s civil engineering sector.

Stefanutti Stocks Marine prides itself on partnering and being a solutions provider to South African port construction, hand-in-hand with Transnet. www.stefanuttistocks.com

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KwaZulu-Natal Road Markers KwaZulu-Natal Road Markers is a 100% Broad Based Black Economic Empowerment company, empowered by the Dept. of Transport KwaZuluNatal under the Vukuzakhe Programme, a programme introduced by the KZN former Minister of Transport and the then Premier of KZN, the Honourable S’bu Ndebele.

Our company is also affirmed by the Presidency’s poverty alleviation initiative, the Expanded Public Works Programme and we are a BBEEE Level 3.

The company was registered in 1999, prior to the registration its proprietor has a long experience which is over 20 years of specialist experience

in Road Marking and general road maintenance.

We have highly trained and skilled road markers that use the best technology available to work accurately and quickly. All our crews have undergone hazard and safety training, to ensure that work sites remain safe for both our workers and other road users.

We also take on road-marking maintenance contracts, delivering a total package of services from start to finish.

E. kznroadmarkers@vodamail.co.za www.roadmarkers.co.za

SPECIALISTS IN ROAD MARKING, THERMO PLASTIC ROADMARKING, MAINTENANCE, SAND BLASTING AND MANUFACTURES / SUPPLIERS OF ROAD MARKING MACHINES Our products: • Road Marking • Painting roads and parking areas • Installation of road studs, guard rails and signs • Sandblasting • Manufacturers and suppliers of road marking machines Our dedicated workmanship helps lead the diverse majority to their destinations. We ensure the best quality and safety on our roads.

We are growing as the traffic flows in all directions; slow, fast; either way we are delianators in a human form. Road marking is our passion and innovation with inspiration are key traits that define us.

No matter the weather, our people remain safe day and night. Thank you to KwaZulu Roadmarkers: Where everyone finds direction every time.

It is right there on the road surfaces.

FIND YOUR DIRECTION!

General Manager, Ms Charmaine Nxumalo

Tel: (+27) 721915314 | Fax: (+27) 865403191 Email: kznroadmarkers@vodamail.co.za www.roadmarkers.co.za

TPT which provides a single point of contact and consolidated information to facilitate communication and customer service.

TPT’s mineral bulk operations at Richards Bay, Port Elizabeth and Saldanha are integral parts of logistics corridors for key cargo.

Richards Bay is something of a hub for as many as 13 core commodities, including coal and woodchips, while Port Elizabeth handles the region’s manganese products, and Saldanha its iron ore and steel products.

The work that takes place as part of these operations is characterised by long runs on a network of conveyor belts, large dry bulk parcels and neo-bulk parcels using skip loading solutions.

Agricultural exports however are just as vital to the South African economy. This makes it all the more important that TPT is able to provide state-of-the-art agricultural bulk operations that offer customers storage and other facilities that cater to international market requirements. Commodities handled across ports such as Cape Town and East London include wheat, maize, soya bean meal, animal feed and various fresh produce.

Different break-bulk commodities meanwhile are handled at various different ports. At its port in Durban TPT handles steel commodities, project cargo and abnormal

“Most Southern African import and export commodities are handled through South Africa’s seven logistics ports” BE Transport & Logistics | 219

cargo, as well as carrying out niche container business, while in Cape Town the predominant products include timber, steel and cement.

Meanwhile at its East London facility TPT handles containerised cargo that includes motor vehicle components, chemicals, textiles, fruits, sugar and scrap items.

Vital as all of these areas of TPT’s business may be, and believe me they are absolutely fundamental to South Africa’s economic

prosperity, arguably the most exciting aspect of its operations is its car terminal operations.

Over the course of the last decade South Africa has experienced exponential growth in its automotive industry and today the Durban car terminal is responsible for handling approximately two-thirds of all vehicles either entering or leaving the country.

The growth of this sector played a strong role in ushering in a new era for the Durban car

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TPT

Container ship unloading

terminal in early 2003. It was then that work commenced on Durban’s much-needed port expansion project. One element of this project involved the construction of a three-storey structure that boasts 3,800 additional parking bays and an over-pass linking the car terminal with the quayside. Today the terminal is in the process of increasing its parking capacity up 10,000 parking bays to 14,000, resulting in an increased throughput from 400,000 units to 570,000 units per annum.

The South African government today finds itself embarking upon a huge infrastructure drive with the core aims being to boost the economy and alleviate poverty. The country’s ports are seen as key engines for the economic growth that the government hopes to achieve and it is for that reason that,

under the Transnet Market Demand Strategy, TPT will receive R33 billion aimed at creating new capacity for terminals to meet projected future demand.

With this in mind plans are already afoot to expand various aspects of the business including increasing bulk handling capabilities at Saldanha and expanding the business’s coal skip container capacity by purchasing 1,500 new units. These are without doubt promising times for South Africa’s commercial ports, the regions they are located, TPF as an organisation and most importantly its customers.

For more information about Transnet Port Terminals (TPT) visit: www.transnet.net

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