BE.Africa by Business Excellence Magazine

BUSINESS EXCELLENCE Issue 10 | www.bus-ex.com

DeBeers Debswana Mediterranean Shipping Company

AFRICAN EDITION

Comair

Nordgold

Growth on a global scale One of the most geographically diversified companies in the mining industry, Nordgold is looking to follow up a prosperous 2013 with further growth this year

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contents

Cover story

Nordgold

Growth on a global scale One of the most geographically diversified companies in the mining industry, Nordgold is looking to follow up a prosperous 2013 with further growth.

mining & minerals

De Beers Debswana

Enriching a nation The world’s largest diamond producer by value, Debswana is Botswana’s largest private employer and arguably the biggest contributor to the country’s economic growth.

[ Issue 10 ] BE Africa

Barrick Gold – Lumwana

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

BE Africa [ Issue 10 ] 34

Resource Generation

Steady going at Boikarabelo One of the most strategically important coal resources in South Africa, the Boikarabelo project owned by Resource Generation Ltd is on track to produce its first coal in 2015.

PPC Ltd

Sustainability - the key for future development Operating in some of Africa’s most important developing nations, PPC Ltd is well on its way to becoming a leading emergingmarket business, and a responsible, sustainable one at that.

energy & Utilities

City Power Johannesburg

COTCO

Power to the people Powering an ever-growing metropolis is no easy task in anyone’s book, yet this is the responsibility entrusted to City Power Johannesburg, one that it takes the utmost pride in delivering on a daily basis

Bringing neighbouring nations together The multi-billion dollar Chad/ Cameroon Petroleum Development and Pipeline Project is helping to bring economic benefits and a better quality of life to some of Africa’s poorest inhabitants. employees have helped make KSM-66® the best product of its kind on the world market today.

BE Africa [ Issue 10 ]

contents

transport & logistics

76 Starlite Aviation Group

A flight path to the future A proactive approach to growth has seen Starlite Aviation Group position itself perfectly for the years ahead.

Comair

Flying through turbulence Comair Ltd continues to deliver operational excellence and consistent profitability in what can only be described as an economic headwind: its CEO Erik Venter explains how.

[ Issue 10 ] BE Africa

100 Kenya Airports Authority (KAA)

Flying the flag for Kenya By focusing, KAA is helping to facilitate the growth of the countryâ&#x20AC;&#x2122;s aviation sector as well as the wider economy.

BE Africa [ Issue 10 ] 110

Kenya Ports Authority

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

118

Mediterranean Shipping Company

Shipping to and from South Africa Backed up its fleet of container vessels and multiple service divisions, MSC South Africa has been linking South Africa directly with the rest of the world since 1978.

142

healthcare Telecoms

132 Ascendis Health

Your health in good hands Chief Executive Officer Dr Karsten Wellner discusses the philosophy and values behind Ascendis Health, the home of some of South Africaâ&#x20AC;&#x2122;s leading health and care brands.

132

142

CONCIEL

150

Neotel

Tailor made success Managing Director, Michel Maalouf discusses how a passion for creativity and a drive to deliver results have contributed to the success of CONCIEL.

Providing coverage and connectivity Neotel has risen to the point where it stands among the top-tier telecommunications businesses on the African continent.

BE Africa [ Issue 10 ]

Nord

Growth on a

One of the most geographically diversi Nordgold is looking to follow up a prospe words by

[ Issue 10 ] BE Africa

Will Daynes

research

dgold

global scale

ified companies in the mining industry, erous 2013 with further growth this year

research by

Robert Hodgson BE Africa [ Issue 10 ]

stablished in 2007, when Severstal Group, one of Russia’s most successful metals and resources corporations, decided to move into the gold market, Nordgold has since become recognised as one of the industry’s fastest-growing gold mining companies with operations based in West Africa, Kazakhstan and Russia. It was in 2008 that Nordgold, which until then had only been operating in the CIS, acquired a controlling stake in High River Gold Mines Ltd, a Canadian company which held a number of assets in Russia as well as in Burkina Faso. The Taparko mine and Bissa exploration project, both in Burkina Faso were among these assets. Following the positive results Nordgold achieved with turnaround project at Taparko the company decided to proceed with the development of Bissa. The secret to Nordgold’s rapid rise has been a combination of acquisitions and organic investment. Today the company operates nine mines, has one development project, five advanced exploration projects and a diverse portfolio of early exploration projects and licences. Together these assets not only provide employment for over 10,000 workers but also contributed to Nordgold’s gold production increasing to 924,000 ounces in 2013 from 717,000 ounces in 2012. Nordgold’s mission, which clearly it has taken great strides towards achieving already,

“The company insists that success for Nordgold is about more than just gold and that its values run much deeper than effective gold production”

[ Issue 10 ] BE Africa

Lefa Mills

Nordgold

“One of the company’s major targets for this year is for all of its operating mines to be free cash flow positive by the end of 2014” is to create consistent growth throughout its operations, thus delivering value to its shareholders and all other stakeholders. Nevertheless, the company insists that success for Nordgold is about more than just gold and that its values run much deeper than effective gold production. In addition to this, it constantly strives to ensure that its employees know that their safety is the company’s utmost priority, that it earns and retains the trust of the investment community, that it contributes to the communities in which it operates and that it does its part in looking after the environment. While it is a young company, Nordgold has grown very rapidly and in doing so has been forced to meet the challenges that any expanding mining company would face head on. In the time that it has done so, Nordgold has embraced the realisation that, in order to truly fulfil its potential and reach the next stage of its development, it needed a clear vision as to how it honours the values it is committed to. As the employer of thousands of men and women, Nordgold understands all too well that it bears the responsibility of ensuring their safety and providing a good quality of life for them and their families. Nordgold states that one of its aims on a daily basis is to provide an environment in which its people can realise their potential in conditions that are both comfortable and safe. The company seeks to

BE Africa [ Issue 10 ]

BUILD YOUR NEXT PROJECT WITH WEST AFRICA’S LEADING EPCM CONTRACTOR Together with Nordgold, Lycopodium delivered the Bissa Gold Project in Burkina Faso Lycopodium’s reputation for successful project delivery to world class safety and environmental standards makes Lycopodium the ‘first choice’ partner for any mining project. We work globally with our clients to provide fit-for-purpose engineering solutions in mining and mineral processing. • • • • • •

Feasibility Studies Process Design Engineering Project Management Construction Procurement

For more information contact:

Karl Cicanese Group Manager - New Business E: minerals@lycopodium.com.au T: +61 8 6210 5222

www.lycopodium.com.au

Nordgold

be an employer of choice in the communities in which it operates and to hire the very best people in the industry. The hiring of individuals, particularly those from within local communities, plays its part in Nordgold’s aim to support community development. Being a responsible member of the local communities in which the company operates is a central merit of the way it does business. Indeed, it sees it as a vital part of its role to invest in those communities and help them develop. As part of its efforts Nordgold brings in electricity, water, infrastructure and transport. In many areas, it also assists the local population in gaining access to education and health services. The company is focused on mutual respect and dialogue with local communities and government organisations, and meets all of its legal and tax obligations. Last, but by no means least, is the company’s commitment to taking care of the environment. Nordgold’s recognises the fact that it operates within a hazardous industry, however in doing so it makes every effort to take the utmost care in ensuring that it causes little if any damage to the environments in which it works.

Burkina Faso - support of local business initiatives - weaving

lycopodium Lycopodium has a significant success record in the development and commissioning of projects, often pioneering the introduction of modern process plants and associated technologies to remote and logistically challenging locations. The company has an international reputation for delivering projects which consistently meet or exceed all project criteria and performance targets. Lycopodium’s experience in Burkina Faso and the West African region comprises over 30 projects, including the Bissa Gold Project for Nordgold. This provides Lycopodium with the advantage of recent and relevant project development experience in West Africa, including knowledge of logistics, contractors, and community. The company has been active in the mineral processing industry for

over 20 years and has designed and built processing plants starting at throughputs from 350,000 tpa to 55 Mtpa. Their history in mineral processing and mining, coupled with the proven capabilities of their low cost value-adding design and drafting, provides the ability to offer their client a cost effective project outcome. Lycopodium has also produced a unique and successful model for the execution of projects in Francophone Africa, which has been developed over a number of projects. Lycopodium employs dual French/English translators with local capabilities and connections, ensuring the smooth delivery of information and clear communications to facilitate the successful delivery of projects. www.lycopodium.com.au

BE Africa [ Issue 10 ]

Mining

Drilled piles

Since 1992, FTE Drilling maintains a constant and active presence in the mining sector in Canada and West Africa. Whether it is for exploration projects or for mines already in exploitation, FTE Drilling offers services ranging from core sampling (RAB – RC – DD) to grade control to help mines increase their productivity.

The economic development of Canada involves the construction of infrastructure in very difficult places, sometimes. That’s why, over the years, our clients are asking us to meet challenges. FTE Drilling has developed an enviable expertise in vertical and angle piling or caissons in small and large diameters. From the new construction to the maintenance of existing infrastructure, in coastal environment as in the heart of the most major centers, FTE Drilling is proud to contribute to the expansion and maintenance of Canadian work.

Sherbrooke :

Montreal :

Nova Scotia :

Quebec :

Burkina :

Senegal :

Togo :

Mali

Newfoundland

www.ftedrilling.com

Nordgold

Vegetable production at Bissa community

“A very significant key to our success over the last 15 years has been the renewed partnerships with aboriginal communities” One of the company’s major targets for this year is for all of its operating mines to be free cash flow positive by the end of 2014. It intends to achieve this by applying a forensic approach to cost management, diligent capex spend and working capital optimisation. Despite significant recent gold price volatility, Nordgold consolidated operations remained FCF-positive in 2013 with consolidated all-in sustaining costs reported at US$1,062 per ounce for the same period. A combination of Nordgold’s flexible capex, estimated to be US$200 million

in 2014, reduction of general and administrative expenses, improvements in operational efficiency, as well as the on-going implementation of Nordgold’s Business System, which is expected to add US$55 million to 2014 EBITDA, are keys to ensuring the company remains focused on driving down costs. Nordgold’s efficiency programmes are also showing positive results with growing plant and fleet productivity at key mines, while the company has also successfully reduced consumption of key materials and

BE Africa [ Issue 10 ]

Bissa crushing

[ Issue 10 ] BE Africa

Nordgold

â&#x20AC;&#x153;Going forward the company will seek to develop the existing pipeline of high quality greenfield and brownfield projects through focused exploration expenditureâ&#x20AC;? administrative expense. Furthermore, it has significantly strengthened its senior operational management team, making new hires with proven expertise. This is expected to help Nordgold to progress with its on-going efficiency improvement initiatives. Nordgold has an extensive pipeline and a proven track record of greenfield development. A perfect example of this would be the Bissa mine, which was launched on time and on budget and has significant exceeded initial production forecasts. Going forward the company will seek to develop the existing pipeline of high quality greenfield and brownfield projects through focused exploration expenditure. To supplement the organic growth pipeline, Nordgold will also seek to capitalise on other opportunities through the evaluation of potential purchases of premium-quality reserves and resources, which comply with its project criteria, to further enhance its reserve base.

Nordgold

+31 20 406 4480 va.bogomolova@nordgold.com www.nordgold.com

BE Africa [ Issue 10 ]

[ Issue 10 ] BE Africa

Enriching a nation De Beers Debswana The world’s largest diamond producer by value, Debswana is Botswana’s largest private employer and arguably the biggest contributor to the country’s economic growth words by

Will Daynes

 research by

Peter Rowlston

BE BEWeekly Africa [[ Issue Issue 83 10 ]

he mining industry has been an integral part of Botswana’s national economy since the early 1990s. At the heart of the industry for the better part of 25 years has been the country’s diamond sector, whose gem quality findings have seen Botswana solidify its position as the world’s leading producer of diamond by value. Debswana is an important figure within this vital part of Botswana’s economy, producing in excess of 70 percent of the country’s export earnings, 30 percent of its Gross Domestic Product and 50 percent of government revenue. The originals of the company date back to 1969, when De Beers entered into a 50/50 joint venture with the government of Botswana to unlock the country’s rich diamond resources. The joint venture, Debswana, is now the largest non-government employer in the country, employing approximately 6,300 people, 93 percent of them local. Debswana today operates some of the world’s richest diamond mines. The mines in question are the Jwaneng Mine, the world’s leading producer of diamonds by value, the Damtshaa Mine, the Letlhakane Mine, and the Orapa Mine, which is the second largest open pit mine on the planet. Together these mines were responsible for producing 22.8 million carats in 2011 alone. The flagship of the company, due to the substantially higher dollar per carat

“Debswana maintains that at the heart of its operations is its regard for the safety and wellbeing of its people and the environment”

[ Issue 10 ] BE Africa

Debswana values its local employees

De Beers Debswana

“De Beers has continued to identify ways to maximise the sustainable benefits of Botswana’s natural resources through the process of beneficiation” obtained for its gems, is its Jwaneng Mine, which became fully operational in August 1982, when it was officially opened by the then President of Botswana. Currently being mined to a depth of 350 metres, the resource itself consists of three separate volcanic pipes and vents. Production normally varies according to mining plans of approximately 12.5 to 15 million carats per year. As is the case with all of Debswana’s mines, the Jwaneng Mine is an open pit operation, one which is currently playing host to a landmark expansion project, which will see the pit elevated to the status of a superpit. The scope of the project, dubbed Cut 8 involves the delivery of an indicated resource estimated down to 850 metres below surface. This project will take a total of 14 years to complete and will ensure continuous production from the mine until at least 2024. The youngest of Debswana’s mines is the Damtshaa Mine, which began operating in 2003. Damtshaa has been forecast to yield five million carats from 39 million tonnes of ore that are to be mined over the 31 year projected life of mine. The mine has been incorporated to the Orapa & Letlhakane Mines safety and environmental programmes, and hence it is ISO 14001 certified. It has thus far been audited twice by the SABS Surveillance Audit Team and confirmed to be compliant to ISO 14001 requirements.

BE BEWeekly Africa [[ Issue Issue 83 10 ]

De Beers Debswana

The aforementioned Letlhakane Mine can be found 190 kilometres west of Francistown, in Central Botswana. First discovered during the sampling and evaluation process at the Orapa Mine, which we will come to momentarily, the Letlhakane Mine officially became the company’s second mine when it opened in 1975. In 2006, the mine broke records for diamond recovery when 1.089 million carats were recovered. Lastly we come to the Orapa Mine, a conventional open pit development. With production dating back to July 1971 it is Debswana’s oldest running operation and one that continues to contribute significantly towards the company’s total carat output. To this day the Orapa Mine remains among the largest open cast mines found anywhere on the planet. Across each of its mines Debswana maintains that at the heart of its operations is its regard for the safety and wellbeing of its people and the environment, with all of

Employee at the mine site

DEBSWANA MINING AND ISOMETRIX GROW TOGETHER IsoMetrix’s involvement with Debswana Mining began in April 2012 when IsoMetrix was awarded the contract for the replacement of the company’s existing Safety, Health and Environmental (SHE) system with the IsoMetrix SHE Software Solution. The completed system, used by close to 1000 employees, has been implemented at Debswana Head Office in Gaborone as well as at their Jwaneng and Orapa Mines. The system was designed around existing company processes that were well thought through, which resulted in a world class SHE solution that matched their requirements precisely. Good relationships were formed in particular with the Projects, IT and SHE Departments, resulting in a continuous symbiotic partnership. The flexibility of the IsoMetrix Agile Application Framework means that as Debswana’s requirements grow, the solution can be modified and developed to incorporate other processes. Currently, additional enhancements to

the existing system are being discussed as well as the incorporation of other processes encompassing Environmental Monitoring and Sustainability as well as Management Review. Stephen Simmonds, Executive Head: Business Development at IsoMetrix, says, “Debswana are to be congratulated on the way they have internalised the system and ensured its utilisation to the fullest capacity. The company has also made a large investment through the training of all its employees that make use of the system thereby ensuring that the system is not only utilised but optimised to the fullest. This investment will continue to ensure a maximum return.” Metrix has recently expanded the IsoMetrix solution beyond SHE to include suites for enterprise risk management, compliance, controlled self-assessments and full sustainability management and reporting. www.isometrix.com

BE BEWeekly Africa [[ Issue Issue 83 10 ]

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[ Issue 10 ] BE Africa

its efforts in these areas geared towards its ZERO HARM vision, one that calls for it to remain a sustainable and responsible miner. In 2004 the Orapa and Letlhakane Mines were awarded some of the highest international accolades, which came in the form of a five star rating from National Occupational Safety Association (NOSA), with a score of 91.5 percent, and ISO 14001 re-accreditation. In addition, the Orapa and Letlhakane Mines achieved two million fatality free shifts. It is also at Orapa where the company maintains a 100 bed hospital that caters for employees and acts as a referral hospital for the region. Employeesâ&#x20AC;&#x2122;

De Beers Debswana

Sunset on the Orapa mine

children also have access to pre-primary and primary schools run by Debswana. Debswana’s recognises that its responsibility towards the nation of Botswana extends to future generations and as such it ensures that it conducts business in such a way that it minimises any impact on the environment. This, it achieves in partnership with the communities that live around its mines who it realises possess valuable input that can transferred to its environmental management programmes. In recent years, De Beers has continued to identify ways to maximise the sustainable benefits of Botswana’s natural resources

through the process of beneficiation. Beneficiation seeks to ensure that beyond mining, as many of the diamond processing stages as sustainably possible take place in country. This will continue to be a core driver of the business going forward.

De Beers Debswana

 +267 361 4200  info@debswana.com @DeBeers www.debswana.com

BE BEWeekly Africa [[ Issue Issue 83 10 ]

Barrick Gold

Concentratin

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

[ Issue 10 ] BE Africa

Will Daynes

research

d - Lumwana

ng on copper

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

research by

Robert Hodgson BE Africa [ Issue 10 ]

[ Issue 10 ] BE Africa

Barrick Gold - Lumwana

ocated within one of the most prospective copper regions in the world, Barrick Gold’s Lumwana copper mine is one of Zambia’s best examples of a prosperous mining operation. Situated within a stable jurisdiction with a long history of mining and boasting established infrastructure, Lumwana possess a large, high potential copper deposit and a multi-decade reserve life. Ore from Lumwana, which is predominantly sulphide, is treated through a conventional sulphide flotation plant, producing copper concentrate for smelting. On site, an extensive mining fleet and array of equipment can be found at work. This includes ten Sandvik DK45 drills, three Cubex DR560 drills, ten D10 track dozers, six CAT 16M motor graders, three 777

This concentrate is only sold on a domestic basis and is not subject to the ten percent duty imposed on all copper concentrate sold internationally. Furthermore, the longterm agreements the mine has in place help ensure that its fill production can be processed, meaning smelter capacity is not an issue for Lumwana. Production at Lumwana in 2014 is currently projected to reach similar levels to that experienced in 2013. Meanwhile, the mine is pursuing a number of initiatives to further improve on cost reductions it has achieved to date. The mine has made significant cost savings through the optimising of its mine plan to smooth our annual stripping requirements, by rationalising contractor requirements and headcount, by in-sourcing maintenance labour

“Average concentrate grades for 2013 were recorded at 31.5 percent, while the processing cost was calculated at $3.53 per tonne” water trucks, three CAT 994/993 front end loaders, 31 Hitachi 4500 dump trucks and six Hitachi 5500 hydraulic shovels/excavators. A 20MTPA design copper concentrator has been optimised to 24.5MTPA at the mine site. In 2013 Lumwana was responsible for producing approximately 260 million pounds of copper at an average copper recovery rate of 93.4 percent. Average concentrate grades for the year were recorded at 31.5 percent, while the processing cost was calculated at $3.53 per tonne. As of 31 December, 2013 proven and probable copper reserves at the mine were put at 6.6 billion pounds. Copper concentrate from the mine is sold under long-term sales agreements to three smelters based in Zambia, Chambishi Copper Smelters, Konkola Copper Mines and Mopani.

and by renegotiating various key contracts. At the same time Lumwana’s management team have successfully improved fleet productivity by increasing LMC tonnage by 18 percent compared to 2012 and achieved efficiency improvements by reconfiguring the mine’s organisational structure and launching an improved Management Operating System. In total management believes that the aforementioned focused improvements all contributed to a $100 million cost reduction in 2013. Today, approximately 90 percent of Lumwana’s workforce is Zambian, a figure that means that the mine falls in line with not only the country’s local employment plan, but also Barrick’s Community Relations Management System. Indeed Lumwana has a long history

BE Africa [ Issue 10 ]

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[ Issue 10 ] BE Africa

Barrick Gold - Lumwana

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

of working together with local communities in order to foster sustainable, long term success. Examples of initiatives taken by the mine can be placed into three categories, those being health and safety awareness, education development and community infrastructure. In the first category the mine has provided vital support to the Lumwana Community HIV and AIDS Task Force, and has contributed towards road safety education, community-led water

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

BE Africa [ Issue 10 ]

[ Issue 10 ] BE Africa

Barrick Gold - Lumwana

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

commissioning of by-pass roads for haul trucks, road safety awareness campaigns and population influx management. Lumwana is also well regarded for its efforts towards fostering wealth creation. It has done so to date through the creation and support of enterprises promoting literacy in the community and the empowerment of women as earners and savers. Lumwana also supports several Agri-Food Innovation Partnerships as well as small and medium business development. In the latter it has put in place the Lumwana Business Incubator Programme as well as facilitating international joint venture investor brokering and Access to Finance partnerships. Long before the turn of the year the mine identified a number of growth opportunities for 2014 which it continues to pursue as we speak. Again it has placed these opportunities into three separate categories, which are enabling people, process initiatives and what it calls its business improvement pipeline. In the first instance the mine plans to ensure its people are well supported through a combination of training and capacity building, and communications and change management. In order to embed significant process improvements the mine has been working hard to streamline the shift handover process and enhancing the daily mine planning and review processes. It also plans to launch detailed project management best practices, which will assist in planning, delivering and tracking key 2014 priority projects, and identify the mine’s next wave of longer-horizon initiatives.

The new mine plan that Lumwana is working under is designed to maximise free cash flow in the current economic environment and preserve optionality. The goal of Lumwana’s management is to continue to improve the mine’s productivity at a time when the outlook for long term copper prices remains strong thanks to continued demand growth and supply-side challenges. What this collectively means for the mine is that it is very well positioned for what the future may bring.

Barrick Gold - Lumwana

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

BE Africa [ Issue 10 ]

Resource G

Steady going at

One of the most strategically important coal res owned by Resource Generation Ltd is on words by

[ Issue 10 ] BE Africa

John Oâ&#x20AC;&#x2122;Hanlon

Generation

t Boikarabelo

sources in South Africa, the Boikarabelo project n track to produce its first coal in 2015 research by

Jeff Abbott BE Africa [ Issue 10 ]

One of the rail link sites

he Boikarabelo field in South Africaâ&#x20AC;&#x2122;s Waterberg region, to the north of the country and close to the border with Botswana, is an outstanding coal asset by any standards. An extensive coal seam, between 120 and 130 metres in depth and containing zones of varying quality thermal and soft coking coal, lies only 20 metres below the surface in terrain that is flat and easy to get at. It is the ideal site for an open pit mine: the shallow overburden means that a small fleet of equipment can produce a lot of

[ Issue 10 ] BE Africa

coal. Costs will be relatively low, and multiple mining benches will provide the flexibility to extract the coal quality required for a variety of markets, from thermal coal used in power stations in Asia where capacity is confidently expected to continue rising over the coming decade to South Africa itself where there is an insatiable demand. Nevertheless, with the international coal market currently more nutty slack than briskly blazing, this is a time when only the most outstanding new projects can attract funding.

Resource Generation

“We hope to complete our funding by June of this year and we are concentrating on funding the coal handling and preparation plant (CHPP)”

When we last reported on the Australian and JSE joint listed mining company Resource Generation (ResGen) its focus was on locking down its funding arrangements, and this remains its principal challenge today despite solid progress to date. “We hope to complete our funding by June of this year,” says Managing Director Paul Jury. “We are concentrating on funding the coal handling and preparation plant (CHPP). If we can achieve that we will be able to stick to the development programme and start producing coal at the end of 2015.”

BE Africa [ Issue 10 ]

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At around $200 million the CHPP is the largest capital item for the Boikarabelo project. In November the company took a major step when it agreed to terms and the design and supply of the plant. Earlier this year it put another piece of the jigsaw in place with the agreement of a $65 million infrastructure loan facility from Noble Resources International, a subsidiary of Singapore-listed global agricultural and mining supply-chain manager Noble Group, which as part of the agreement has undertaken to purchase three million tonnes of domestic middlings coal every year, for eight years after production commences. This loan is repayable by 31 March, 2016, by which time the mine is expected to be in production and generating cash flow, and is in addition to a $55.3 million loan from Noble, agreed in July 2013, for the construction of the rail link from Boikarabelo to the existing Transnet Freight Rail network. The CHPP will crush, screen and grade the coal, stockpiling it into two main categories. Coal for export will be loaded onto rail trucks

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The extraordinary power of Marsh Africa lies in our local and global resources. The local knowledge and expertise of the Marsh business are complemented by our global capabilities, as well as our significant network of correspondent brokers, providing seamless service offerings to meet our clients’ local and global needs. Marsh has adopted a structure that ensures client focus and delivery of the appropriate services to the various client segments in which we operate. Marsh is a world leader in delivering risk and insurance services and solutions to clients. We provide global risk management, risk consulting, insurance broking, alternative risk financing and insurance 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. Our Risk Management Practice has specialist teams providing bespoke insurance and risk management solutions. With extensive work for organisations of all types and size, we understand the full range of risks and provide insights and develop solutions to help companies manage those risks. Our ability to anticipate our clients’ needs and continually developing our services and solutions, to take advantage of emerging opportunities within respective services, is our core strength. With our global reach and local presence, Marsh accesses insurance information to help companies understand the potential risks in individual countries, as they determine how and where to focus their business. www.marsh-africa.com

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BE Africa [ Issue 10 ]

Providing Environmental the Coal Industry acr

DIGBY

ENVIRON

DIGBY WELLS COAL CLIENTS FROM JUNIOR TO T

• RESOURCE GENERATION – Boikarabelo Project • ANGLO AMERICAN THERMAL COAL – Biodiversity Action / Management Plans • BHP BILLITON – Various ESIAs • EXXARO – Thabametsi • CIC ENERGY CORP. – Mmamabula Project • NORTHERN COAL – Jaglust, Mimosa Colliery

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for transportation to the ports, while thermal coal for domestic use in the power generating stations of Eskom in Mpumalanga will be supplied direct, also by rail. Jury is hoping to resolve the remaining funding issues sooner rather than later so he can concentrate on the work of building the mine, the processing plant and the associated infrastructure, including road and rail links. The project itself is one of the soundest on the planet, which is evidenced by the fact it has continued to remain buoyant at a time when others have been mothballed or abandoned. Boikarabelo is of strategic importance to

the economy of South Africa. The mine is only 40 kilometres by road from an existing rail system that provides access to domestic markets, and Transnet is making all efforts to ensure that its lines have the capacity to transport the coal to the ports of Durban, Richards Bay and Maputo, which all have potential to expand their coal capacity, for export shipments. The proposed new transKalahari railway (TKR) from Walvis Bay to Botswana will give access to the Atlantic though that is an early stage project that was only given the go-ahead by the partner governments in March.

â&#x20AC;&#x153;By mid-February we had worked 300 shifts without a lost-time injury (LTI) â&#x20AC;&#x201C; more than 135,000 hours!â&#x20AC;?

ResGen employees

[ Issue 10 ] BE Africa

Resource Generation

Digging out the route for the rail link

The 40 kilometre rail link that persons. In addition to that we Did you know? ResGen is building to connect have started the earthworks Boikarabelo with the main line for our major roads. As part is also a long lead item, like the of the work we have to put in $200 million CHPP, however the ground work the provincial road bypass and Capital cost is well under way says Jury. In upgrade the main road going of the CPP fact the site is a hive of activity up onto the mine and prepare already, and that activity will a new access road for the mine. 300,000 tpa increase right up to the start of Those things are going forward Boikarabelo peak mining at the end of next year. and also we are starting the production “We have a lot of construction foundation works for the coal going on on site,” he says. “Apart preparation plant.” from the rail link, we have already The CHPP is scheduled to built the first stage of our construction camp. come on stream in the first couple of months By May there will be a good 200 people living of 2016, ready to receive the coal that will there and we will be extending the camp over be flowing from the mine – initially at a the coming six months to accommodate 1,300 rate of five million tonnes per annum (tpa),

BE Africa [ Issue 10 ]

“Construction of the mine, and ultimately the mining of the coal, will not be possible without the support and assistance of the local communities around the mine” rising to more than 30,000 tpa by 2030. There’s no denying that the mine will have a massive impact on the local community over many years – the mine life is estimated at over 100 years. That being so, ResGen is keen to ensure that impact is seen as a positive one, and not just for South Africa’s

[ Issue 10 ] BE Africa

economy and its energy industry. From two employees on site in February 2013 there are now 250 employees and contractors on site, and their safety is a priority Jury insists. “By mid-February we had worked 300 shifts without a lost-time injury (LTI) – more than 135,000 hours!”

Resource Generation

Aerial view showing the route of the rail link

And it is not just the direct employees that are benefiting. The management of the Boikarabelo coal mine holds regular rounds of community engagement meetings. An Executive Community Engagement Forum consisting of representatives from each community as well as members of the Boikarabelo mine management has been formed. Using the existing, traditional communication structures in each community the partners work together to keep each other informed of developments not just at the mine site but throughout the local community. One of the early priorities was to encourage and support the process by which local entrepreneurs and existing

businesses from Lesedi village and other local communities can supply the mine. Community engagement remains a priority for everyone at Boikarabelo. â&#x20AC;&#x153;Construction of the mine, and ultimately the mining of the coal, will not be possible without the support and assistance of the local communities around the mine,â&#x20AC;? Paul Jury acknowledges.

Resource Generation

+61 (2) 9376 9000 info@resgen.com.au www.resgen.com.au

BE Africa [ Issue 10 ]

PPC

Sustainabili for future d

Operating in some of Africaâ&#x20AC;&#x2122;s most important d becoming a leading emerging-market busines words by

[ Issue 10 ] BE Africa

Tshilidzi Dlamin

C Ltd

ity - the key development

developing nations, PPC Ltd is well on its way to ss, and a responsible, sustainable one at that

edited by

Will Daynes BE Africa [ Issue 10 ]

ncreased concern and focus on global warming has no doubt made it necessary for countries, industries and businesses to look for growth and development opportunities in a more sustainable manner. One particular example would be the global cement industry which has historically suffered from having a high carbon footprint due to the energy requirements and chemical process involved in cement manufacturing technology. PPC Ltd, a pioneer in the southern African cement industry, remains committed to the integration of environmental and sustainability issues into its business strategy. The cement supplier recognises that the impacts of climate change, management of water resources and energy security are among the greatest challenges facing society today. “PPC cannot ignore the need for sustainable development as we believe we have a responsibility towards future generations. We aim to minimise the impact of our environmental footprint and create more positive outcomes in the long term,” explains Tshilidzi Dlamini, Group Sustainability and Environmental Manager for PPC. “The strategic steps we have taken in reducing our environmental footprint, as an integral part of our sustainable development measures, will allow PPC to achieve its long term goals and targets.” Sustainability has been a big part of PPC’s

“PPC cannot ignore the need for sustainable development as we believe we have a responsibility towards future generations”

[ Issue 10 ] BE Africa

PPC Ltd

“When it comes to water, while we are not a major consumer, we can’t ignore its importance, given the scarcity of water in this country” agenda for many years, and all of their cement plants were ISO 14001 certified in 2001. The company also has a stringent environmental policy, which received a stamp of approval by the then CEO, in 1997, and is reviewed on an annual basis. In October 2011 PPC set out to improve electrical efficiency by ten percent, thermal efficiency by five percent and ultimately reducing its specific carbon footprint by five percent by 2017. Coupled with this, PPC aims to source ten percent of its electrical energy from renewable and/or alternative energy sources. PPC has also carried out significant work on its procurement policies, which now encourage the use of sustainable material and resources. The business is engaging its top six suppliers by spend to assess their sustainability in 2014 and the business aims to expand this further to other suppliers. “When it comes to water, while we are not a major consumer, we can’t ignore its importance, given the scarcity of water in this country,” Dlamini continues. “As such we are working on improving water monitoring systems to understand the areas of potential saving while also continuing to make huge savings through various upgrades.” PPC is of the opinion that changing legislation is one of the biggest stumbling blocks for corporates to increase its drive for sustainable development. “The regulatory

BE Africa [ Issue 10 ]

Tshilidzi Dlamini, Group Sustainability and Environmental Manager

process is prohibitive due to the increasing number of licences that one needs to hold to operate business and the processes associated with acquiring this licences. This almost hinders a company’s ability to innovate as its focus turns to licensing,” Dlamini states. The relationship between environmental requirements and production demands has also, at times, made it challenging to address environmental requirements such as upgrading plants to meet certain standards. Over the last couple of years, PPC has received the ISO 14001 certification for all of its cement operations in South Africa. “These systems assisted the business in being able to manage its legal requirements, while also being able to identify key aspects and impacts associated with our operation,” Dlamini says. “As this requires the commitment from PPC’s top management, it created awareness and also availability of resources to address environmental impacts.” Another major achievement for PPC comes in the form of a four star rating for its new headquarters by The Green Building Council of South Africa (GBCSA), an independent, nonprofit company formed in 2007 to lead the greening of South Africa’s built environment. Located in the middle of the hustle and bustle of the Northern Johannesburg business centre, Eastgate 20 on Katherine Street in Sandton, South Africa now houses one of the largest cement suppliers in southern Africa. The new building is strategically designed to efficiently reduce energy and water. The Green Star

“The regulatory process is prohibitive due to the increasing number of licences that one needs... this almost hinders a company’s ability to innovate as its focus turns to licensing”

[ Issue 10 ] BE Africa

PPC Ltd

rating system from the GBCSA controlled so that only as much Did you know? cooling is provided as needed, was designed to provide the and the motors do not just stop commercial property industry and start.” with an objective measurement 2001 Eastgate 20 is also expected for green buildings and to create The year that all to make a significant reduction and reward environmental of PPC’s cement in the usage of potable water leadership in the property plants became ISO through the installation of industry. A four-star rating 14001 certified water efficient fittings for taps, recognises a building for its urinals and toilets. Furthermore, “Best Practices”. 40% Eastgate 20 has also increased To consume less energy, The amount of the quality of the water in the Eastgate 20 has been designed revenue PPC hopes adjacent environments. PPC to utilise efficient lighting which to generate from has a storm water treatment is only activated when an area outside of southern site, adjacent to Eastgate 20, is occupied. Further to this, the Africa by 2017 where it treats all the water design has enabled the building from its premises and that of the to take advantage of natural neighbouring sites to ensure that light, reducing the building’s it is clean before it flows into the river. electricity demands during office hours. “Normally during a storm event, rainwater “We have also made considerable progress runs off hard surfaces into storm water drains through our new air conditioning system,” and is directed into the nearest river to avert Dlamini states. “It uses inverter technology for flooding,” Dlamini highlights. “In built up the compressors, meaning that the speed is

BE Africa [ Issue 10 ]

areas, the abnormally amplified increase in water flow during storm events disrupts the natural balance of the ecosystem and the river’s ability to function as part of a healthy ecosystem.” PPC has further boosted its green credentials by investing in the wind energy sector. Construction of the Grassridge Wind Energy Facility in Nelson Mandela Bay officially began with project representatives from the Department of Energy (DoE), InnoWind (Pty) Ltd, PPC Ltd and community representatives from Motherwell turning the first soil of the R 1.2 billion wind farm.

The Grassridge wind farm forms part of the DoE’s Renewable Energy Independent Power Producer Procurement Programme and is being established at PPC’s Grassridge Quarry. It is one of the first renewable energy projects to be developed within an operating quarry in South Africa. InnoWind, a local wind energy developer owned by EDF Energies Nouvelles has developed the project. The wind farm is owned by Grassridge Wind Power, a project company which comprises InnoWind, the Industrial Development Corporation and the Grassridge Winds of Change Community Trust. This

“PPC is committed to becoming a more sustainable company. This project is the first step in procuring power from renewable sources”

[ Issue 10 ] BE Africa

PPC Ltd

facility will consist of 20 Vestas V-112 3MW wind turbines, with an installed capacity of 61.5 MW, delivering electricity equivalent to the annual consumption of approximately 40,000 households. The development is the first phase of possible future wind farm expansions in its vicinity. “We have come a long way in bringing this project to fruition, and are all very excited to reach this milestone that is the start the construction of InnoWind’s first wind farm in South Africa,” said Kevin Minkoff, Project Manager at InnoWind. According to Egmont Ottermann, Group Energy Manager at PPC Ltd, the wind farm forms part of the cement company’s longterm rehabilitation plans for the mine. “PPC is committed to becoming a more sustainable company. This project is the first step in procuring power from renewable sources.” Indeed, PPC and InnoWind are today in

the midst of discussions for a second phase, 24 MW wind farm under a bilateral power purchase agreement. When commissioned, this farm will supply ten percent of PPC’s electrical energy requirements in South Africa. In a report by the European Cement Association, a safe environment is essential for protecting people from changing weather conditions, such as long periods of drought and a significant level of rainfall. “Concrete can be used to provide comprehensive fire and flood protection including protection of people, animals, goods, property and the environment. It also plays a key role in guaranteeing a safe, secure supply of drinking water and power,” the report said. The report indicates that the high thermal mass of concrete enhanced thermal comfort by minimising or avoiding overheating during heat waves especially when combined with natural ventilation and appropriate building

BE Africa [ Issue 10 ]

“Buildings are getting smarter by utilising wind and minimising water usage. Buildings are also much more adaptable to harsh weather conditions or events” architecture. This also reduces the need for air conditioning, thereby reducing carbon dioxide emissions from energy consumption. “Cement is incredibly important in addressing the issues posed by climate change,” Dlamini enthuses. “Buildings are getting smarter by utilising wind and

[ Issue 10 ] BE Africa

minimising water usage. Buildings are also much more adaptable to harsh weather conditions or events. We encourage all of our clients to keep that in mind in the design process of their new structures and urge them all to apply sustainable measures during the construction process.”

PPC Ltd

Apart from their operations in their historic territories in southern Africa, the cement supplier has undertaken an African expansion strategy which aims to see PPC generate 40 percent of its revenue from outside of southern Africa by 2017. To achieve this, PPC has been increasing its footprint in Africa. It increased its stake to 30 percent in Ethiopian company Habesha Cement with construction of a 1.4mtpa plant due to start this year. It also acquired a 51 percent stake in CIMERWA of Rwanda, with construction of a 600,000tpa plant currently under way. Meanwhile, the construction of its 1.0mtpa plant in Democratic Republic of Congo is expected to start this year and PPC is also

currently concluding a feasibility study for the construction of a 700,000tpa milling plant to service northern Zimbabwe and Mozambique. PPC is determined to align its sustainability strategies to all of its new operations on the African continent and in committed to making sure that all its operations adhere to international best practices.

PPC Ltd

+27 (0)11 386 9000 contactus@ppc.co.za www.ppc.co.za

BE Africa [ Issue 10 ]

[ Issue 10 ] BE Africa

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

Will Daynes

research by

Robbie Hodgson

BE Africa [ Issue 10 ]

Johannesburg at sunset

ocated in the eastern plateau area of South Africa known as the Highveld, Johannesburg is country’s largest city by population and the provincial capital of Gauteng, which boasts the largest economy of any metropolitan region in all of Sub-Saharan Africa. The economic and financial hub of South Africa, Johannesburg is one of the world’s leading financial centres. Its importance to the country’s success is such that it is responsible for producing up to 16 percent

[ Issue 10 ] BE Africa

of South Africa’s gross domestic product and accounts for as much as 40 percent of Gauteng’s economic activity alone. In a survey conducted in 2007 by MasterCard, Johannesburg ranked 47 out of 50 top cities in the world as a centre of commerce, the only African city to appear on the list. Responsibility for providing electricity to such an important metropolis rests with City Power Johannesburg, which like the country’s other utilities providers is run on self-funded business lines, receiving no annual grants

City power Johannesburg

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

from the city, providing billable services direct to individual households. In supplying power to such a vast geographical area, City Power has divided the city into seven regions, these being Lenasia, Bryanston, Hursthill, Reuven, Siemert Road, Midrand, Roodepoort, and Alexandra. It is the company’s core mission to provide the city with a sustainable, affordable, safe and reliable supply of electricity, while also providing prompt and efficient customer service at all times, and undertaking its

BE Africa [ Issue 10 ]

(PTY) LTD

City power Johannesburg

business in an environmentally acceptable manner. As well as maximising the utilisation of its assets, City Power strives to exceed customer expectations and sustain and grow its revenue base. Providing everyone with access to electricity is of vital importance to the business and in doing so it hopes to cost effectively meet both national and international standards in electricity supply. City Power is committed to good corporate governance standards and complies in all material respects with the relevant principles of the King II code. Robust systems, policies and practices are in place to ensure that City Power conducts its business in line with global best practice. City Power’s client base is segmented into key customers, large power users, and prepaid, domestic, agricultural and commercial customers, with the domestic segment forming the majority of this customer base. To meet the needs of corporate customers City Power has concentrated on improving the wire network to reduce outages and power surges. Considerable progress has been made in recent years, with 70 percent of its customers now rating the service as good. For residential customers, and in line with the government’s commitment to ensure all South Africans have access to electricity,

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

Electro Inductive Industries Electro Inductive Industries (Pty) Ltd (EII) is a well-established level 2 BBBEE company, manufacturing high quality SABS approved transformers (16kVA to 20MVA up to 66kV) and miniature substations for the African market. EII is expanding with exciting developments, including the addition of related products and is proud to be the contracted supplier of miniature substations to City Power. Another initiative is an extended marketing relationship with Polybox - an established supplier of polyethylene enclosures. Together they are developing renewable energy hot water supply systems, focusing on rural African areas to bring POWER FOR LIFE FOR AFRICA! www.electroi.co.za

Electrical insulators

BE Africa [ Issue 10 ]

Specialist in Design & Manufacturing

Revive Electrical Transformers (Pty) Ltd, established in 1997, has grown to be one of the largest Distribution Transformers Manufacturers in Africa. Our success has been our dedication to our meet with our discerning customers’ requirements and to maintain our reputation to provide the market with competitive prices, excellent quality and on time delivery. Our Local customers include Eskom, the various municipalities, Siemens, Voltex, City Power, ARB, and contractors in South Africa. Our international Customers include Botswana Power Corporation, Mozambique, Swaziland, Namibia, Zambia, DRC, Ghana, Malawi and Lesotho. Revive Electrical Transformers is the first South African company to build cast resin dry-type transformers locally. Our Products: • Oil immersed distribution transformers • Cast Resin dry type transformers • Oil Mini-Substations • Cast Resin Mini-Substations • Neutral Earthing Resistors (NER), Compensators (NEC) and compensators with Auxiliary transformers (NECRT) • Single wire Earth Return transformers (SWER Transformers) • Amorphous core transformers • Custom Design Transformers

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

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

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

the introduction of 50 kWh basic free electricity per month in June 2002 has been very well received. In context, this enables a householder to run two 60 W lamps and a TV set for four hours per day for the month and consume just over half the free allocation. This was one of the first-and highest-initiatives in the country and is a considerable benefit to customers in poor communities. Each and every one of the company’s customers has access to a sophisticated call centre, which manages over 63,000 calls in the peak winter months and provides a singlesource service for all queries, applications and payments. City Power also has dedicated customer service managers in all its areas of operation. Regular customer’s forums are providing a valuable base for feedback and improved customer service.

City Power employee at work

BE Africa [ Issue 10 ]

â&#x20AC;&#x153;City Power has a responsibility to the communities in which it operates to educate customers about the safe use of electricityâ&#x20AC;? Proud to be recognised as a dynamic employer, City Power is focused on providing the best working environment in its industry and operating at consistently high levels of productivity. This has enabled the company to attract the top talent in its field, joining a team of 1,800 employees.

[ Issue 10 ] BE Africa

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

City power Johannesburg

Johannesburg night cityscape

health management in-house, working with leading private healthcare groups. Furthermore, as a utility provide, City Power has a responsibility to the communities in which it operates to educate customers about the safe use of electricity, the impact of cable and electricity theft and the importance of account payments. A major component of the companyâ&#x20AC;&#x2122;s social responsibility has been the introduction of free basic electricity. City Power has also invested a substantial amount in community empowerment projects in Alexandra, eastern Johannesburg, and a sprawling township that is undergoing a multi-faceted renewal phase. City Power

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

City Power Johannesburg

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

BE Africa [ Issue 10 ]

[ Issue 10 ] BE Africa

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

Will Daynes

research by

Abi Abagun

BE Africa [ Issue 10 ]

Oil tanker

[ Issue 10 ] BE Africa

COTCO

andlocked within north-central Africa, Chad is among the world’s poorest countries, hindered by its desert climate and the fact that it has been ravaged by various civil wars during thirty of its forty years of independence. For decades the country suffered from a lack of economic investment, leaving it with one of the continents poorest infrastructure networks and a large majority of its adult population living below the poverty line. In more recent years however there have been several positive steps taken by a handful of regional and multinational companies to bring much needed work and development to Chad, and indeed to other surrounding countries.

Ownership of the project comes in the form of a three-company oil consortium made up of ExxonMobil, which owns a 40 percent interest, and Petronas Malaysia and Chevron, which hold 35 percent and 25 percent stakes respectively. Furthermore, the governments of Chad and Cameroon hold a combined three percent stake in the pipeline portion of the project. A s well as conduc ting oilfield development and production on behalf of the consortium, ExxonMobil also provides project management services to pipeline companies Tchad Oil Transportation Company (TOTCO) and Cameroon Oil Transportation Company (COTCO). Both TOTCO and COTCO are responsible for pipeline activities in their home countries.

“Comprising some 300 oil wells that have been drilled in Chad’s south-western region, it is among the largest public/private development projects being carried out on the continent” One such step has been the development of the Chad/C ameroon Petroleum Development and Pipeline Project. A $3.7 billion undertaking, comprising some 300 oil wells that have been drilled in Chad’s south-western region, it is among the largest public/private development projects being carried out on the continent. The oil extracted from Chad is subsequently transported via a 640 mile underground pipeline, through neighbouring Cameroon, to an offshore export loading facility based eleven kilometres off the latter’s coast. The pipeline was completed, and first oil achieved, in July 2003, roughly one year ahead of schedule, with revenues beginning to accrue later that same year.

The Chad/C ameroon Petroleum Development and Pipeline Project is expected to generate, and in a number of cases has already generated, significant benefits for both Chad and Cameroon over its lifetime. For Chad, the consortium estimates revenues in excess of $2 billion to be accrued from a combination of royalties, taxes and other sources over its 25 year existence. Meanwhile, Cameroon can expect to see revenues from transit fees and taxes of up to $500 million coming into the country’s coffers. Both of these estimates have since been supported by research conducted by the World Bank. During the project ’s three-year construction phase it provided employment to more than 13,000 people from Chad and

BE Africa [ Issue 10 ]

Reducing risk Improving safety Increasing efficiency

caverton aviation cameroon

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

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

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

COTCO

Cameroon, a large percentage of whom were previously unskilled yet received training from the operators which in turn helped them to prepare for future job opportunities. At the same time, over $740 million in procurement fees has gone to support local contractors tasked with various responsibilities including truck transportation, civil works, vehicle maintenance and food catering. Since construction began more than $3 billion has been spent on goods and services from local businesses, with almost $2 billion spent in Chad and over $1 billion in Cameroon. Despite construction having been completed in 2003 the project’s operators have continued to prioritise the engagement of local and international supply partners to manage important activities and responsibilities across the operation. Cameroon for its part obtains its project revenue primarily through transit fees earned from the use of the export pipeline system which intakes Chad’s oil at the Mbére River where the Chadian portion of the pipeline ends. The Cameroonian portion of the export

Caverton Helicopters Cameroon Oil Transport Company S.A, COTCO, contracted Caverton Helicopters Limited in March 2012, to provide one DHC6-300 Twin Otter Airplane for the provision of passengers transfer and pipeline patrol within Cameroon and Chad. This contract is operated by CHL’s subsidiary, Caverton Aviation Cameroon (CAC), which was set up for the purpose of this contract and also to fill the gap in the market for aviation service providers in Cameroon CAC maintains a hangar facility located in Zone Aviation Legere, Ancien Aeroport, Douala which is the base of its operations. The company carries out its aircraft maintenance, flight following and passenger processing from the facility. The company is also able to provide tailor-made aviation logistics solutions to its clients in order to fulfil their requirements with safety always at the forefront of its operations. www.caverton-helicopters.com

Chad/Cameroon – Doba Basin

BE Africa [ Issue 10 ]

inspired Your weekly digest of business news and views

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

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

[ Issue 10 ] BE Africa

pipeline system then transports Chad’s oil to the Marine Terminal located offshore from the seaside town of Kribi. Although Cameroon has no ownership share of Chad’s oil, it does have an ownership share in the pipeline system. As highlighted by this particular project, and indeed numerous others throughout the world, ExxonMobil and all of the companyies that it works alongside share a commitment to investing in the countries in which it operates. In Chad and Cameroon, ExxonMobil have spearheaded and supported a variety of initiatives, one of which is the Economic Empowerment of Women Entrepreneurs. This program provided microcredit funding and training for more than 80 traditional women’s cooperatives in the oilfield area, thus increasing the incomes of 1,600 women in the cooperatives by an average of 75 percent.

COTCO

Community development

â&#x20AC;&#x153;ExxonMobil and all of the companies that it works alongside share a commitment to investing in the countries in which it operatesâ&#x20AC;? Major malaria prevention and treatment programs remain in place in Chad and Cameroon, with millions in funding from the ExxonMobil Foundation. During the construction phase of the project alone, the Roll Back Malaria program distributed nearly 75,000 anti-mosquito bed nets in partnership with the World Health Organization and the health ministries of Chad and Cameroon. Meanwhile, project funding, along with contractor donations and community compensation micro development projects,

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

COTCO

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

BE Africa [ Issue 10 ]

[ Issue 10 ] BE Africa

A flight path to the future Starlite Aviation Group A combination of its first-class track record and its proactive approach to future growth has seen Starlite Aviation Group position itself perfectly for the opportunities that East Africa will have to offer in the years ahead words by

Will Daynes

ď ľ research by

Jeff Abbott

BE BEWeekly Africa [[ Issue Issue 83 10 ]

Starlite currently operates 11 Puma helicopters

ub-Saharan Africa is recognised as one of the world’s fastest growing regions and within it exists some of the continent’s fastest growing countries including Mozambique, Uganda, Tanzania and Kenya. It is in these countries that large gas and oil finds are helping to push annual growth rates above ten percent per annum, a trend expected to continue this decade. With such growth prevalent across the region it comes as no surprise to see both established and new businesses locally and

[ Issue 10 ] BE Africa

internationally, flocking to the area in the hope of using their own unique skills to procure new clients and contracts. One such business is the Starlite Aviation Group. “In addition to the work we have been carrying out over the last year in Namibia on the west coast of the continent, we have been making positive strides towards taking on additional contracts along the east coast,” explains Commercial Director, Dimmie De Milander. “During December 2013 and January 2014, we had

Starlite Aviation Group

“During December 2013 and January 2014, we had three helicopters operating on two different contracts in Madagascar”

three helicopters operating on two different contracts in Madagascar. We now intend on continuing to leverage the positive work we are doing on behalf of the offshore industry and the utilities market across Africa’s more prosperous regions.” Established in South Africa in 1999, Starlite has experienced phenomenal 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

BE BEWeekly Africa [[ Issue Issue 83 10 ]

and cargo transport, helicopter sales and charter, maintenance and pilot training. De Milander has been with the group since August 2007 and in that time has become an expert at what drives business and growth in the African markets in which Starlite operates. “Without doubt, the success of numerous gas and oil campaigns off the coasts of Mozambique, Tanzania and Kenya have contributed significantly towards the economic expansion of the region,” he continues. “Virtually the entire east coast of Africa is fixed for long term growth, primarily due the higher quality of seismic data being collected

across the region, the oil and gas reserves that continue to be found, advances in deep water drilling and of course the presence of stable governments. Accordingly, we have made considerable efforts to follow this growth, by acquiring both our Air Service Licence and Aircraft Operating Certificate in Tanzania, and establishing a permanent base for our operations in Dar es Salaam in order to improve our services to existing and potential clients in the country. Furthermore, we have formed a strategic alliance in Kenya with a local fixed wing operator, a partnership that puts us in a strong position to expand here as well.”

“Our philosophy has always been that, regardless of race, culture or creed, we remain ever mindful of those in need”

A donation we made to Jodi Jackson dance academy

[ Issue 10 ] BE Africa

Starlite Aviation Group

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

There is no question that Starlite possesses the vast majority of the intangibles needed to prosper in East Africa. The group’s standard of operations is at the level it needs to be. Safety and quality standards, of paramount importance to Starlite, have been audited by regulatory bodies, and its helicopter fleet is comparable to any of its competitors. Nevertheless, a trend is emerging off the coasts of Mozambique, Tanzania and Kenya that up until now posed a challenge, and that is the fact that oil companies are being driven further out to sea to lay claim to vast deposits of oil and gas. This situation resulted in Starlite looking at expanding its fleet by investing in helicopters capable of travelling further offshore. It is closer to home, however, that one will find what De Milander refers to as the crown jewel of the group, that being its International Aviation Training Academy. Since 2003, Starlite Training operated from its base at Virginia Airport, ten kilometres

north of Durban, South Africa. In June 2011 the group relocated to what is now its primary training base in Mossel Bay, South Africa, on the Mossel Bay Air Field. The latter offers the perfect terrain and yearround good weather to provide future pilots with value-added training services. The Training Academy offers training for helicopter aircrew, maintenance personnel and operational support staff to a level of competence commensurate with leading military and aviation safety standards. “Today our Academy is responsible for training the vast majority of sub-equatorial African air forces and police divisions,” De Milander says. “The Academy has trained pilots from the South African Air Force, the Botswana Police Air Wing, the Kenyan Police, Army and Air Force pilots, and the Namibian Police, as well as 19 students from Transnet and many civilians. Furthermore, we are in the process of finalising talks with Tanzanian clients and entering into fresh discussions with our

BE BEWeekly Africa [[ Issue Issue 83 10 ]

“While the success of the Training Academy is apparent, perhaps a less well publicised facet of the Starlite Group is its work with local communities and charities” partners in the UAE, whose Special Forces Pilots we have trained in the past. Needless to say, this area of the business is booming at present, and we put that down to the simple fact that we provide a consistently exceptional standard of training that is at the very least on par with any other provider globally.” He continues, saying: “The Training Academy expanded its training to include

[ Issue 10 ] BE Africa

a Fixed Wing Division, upgraded its fleet to include the Robinson R66, purchased to provide single turbine conversions. Furthermore, it introduced the Guimbal Cabri G2, to the training fleet and was the launch customer for Africa, of this stylish, safe, technologically advanced and comfortable helicopter for Africa. Always one step ahead of the market, the Academy took delivery

Starlite Aviation Group

A view from the cockpit indicates the type of conditions Starlite operate in

of the JAR/EASA/SACAA approved Elite Evolution S723T FNPT II MCC simulator, based on the Eurocopter, AS-335 Twin Engine Helicopter. The fixed wing equivalent will be delivered in April 2014.” While the success of the Training Academy is apparent, perhaps a less well publicised facet of the Starlite Group is its work with local communities and charities. De Milander is personally involved in outreach programmes, having completed a 500 kilometre cycle challenge back in October 2013 in order to raise money for PATCH – The Centre for Abused Women and Children. He was also instrumental in Starlite’s monetary contribution to the Jodi Jackson School of Dance in Cape Town. Starlite plays an active role in the Reach for a Dream

Foundation, turning the dreams of flying, of terminally ill patients, into a reality. Starlite supports and gives monetary contributions to the ‘Toy Story’ fund, Agro Bio (Pty) Ltd, a fund providing farming equipment and infrastructure support to farming projects and the Seed of Hope feeding scheme. “Our philosophy has always been that, regardless of race, culture or creed, we remain ever mindful of those in need. If a community is seen to be struggling Starlite provides support and endeavours to do the very best to help,” De Milander enthuses. “The types of projects we have provided support to over the years have been extremely varied and have included supporting a foster care home in Durban, the development of young rugby players from poor backgrounds and

BE BEWeekly Africa [[ Issue Issue 83 10 ]

Did you know? Starlite Aviation Group is a privately owned company made up of a select group of aviation experts. The Starlite fleet includes: PUMA  SA 330 J PUMA  Eurocopter EC120  Eurocopter EC130

Starlite Aviation will soon be operating three Bell 412’s on contract

“We are currently working tirelessly to secure multi-year contracts with clients working offshore in the oil and gas industry”

donating money for equipment and gear for a local ballet school. Each project is deemed important and we take great pride in supporting the communities in which we serve, as best we can.” Regarding Starlite’s business plans for 2014, the focus and strategy revolves around expanding operations to gain an even greater foothold in Africa’s more promising regions. Starlite recently purchased and was the launch customer of the new Airbus AS333 C1e.

[ Issue 10 ] BE Africa

ROBINSON  Robinson R22 Beta II  Robinson R44 Raven I  Robinson R44 Raven II  Turbine Helicopter R66 BELL  Bell 206B Jetranger  Bell 407  Bell 212  Bell 412

The initial order of two of the aircraft has since been increased. This is part of Starlite Aviation’s fleet renewal and expansion program, with the rotorcraft joining an extensive helicopter fleet that currently includes twelve Airbus Helicopters SA330 Pumas. The AS332 C1e offers versatility across a full range of utility missions, especially in hotand-high environments, as well as missions requiring a small footprint while delivering a significant lift capability such as the vertical

Starlite Aviation Group

The SA 330 J PUMA on deck

replenishment of ships and other offshore and onshore work. Included in its standard equipment list is the four-axis autopilot and associated automatic flight control system from Airbus Helicopters’ EC225 Super Puma helicopter, which provides flight envelope protection, unrivalled precision, and stability in even the harshest operating conditions. If equipment or systems are required beyond the baseline definition, additional customisation can be provided by Airbus Helicopters and its wholly-owned Vector Aerospace Company, or the network of subsidiaries and approved partners. “We are currently working tirelessly to secure multi-year contracts with clients working offshore in the oil and gas industry, in regions in Africa, which is an achievable goal with our existing fleet of aircraft. De Milander concludes. “At the same time we are proactive in pre-planning in our area

of expertise in operations, by training our crew, technicians and maintenance staff on a new model of aircraft for the group, the AgustaWestland AW139. By providing training in the early stages, Starlite is ensuring that we create a situation where we have the finance available and manpower in place, for the purchase and operation of said aircraft. Furthermore, that will ensure that its integration into our fleet will be a rapid, efficient and smooth transition. This is just another example of how we are always looking to position ourselves perfectly for the next stage in our development.”

Starlite Aviation Group

 +27 (0) 31 571 6600  dimmied@starliteaviation.com www.starliteaviation.com

BE BEWeekly Africa [[ Issue Issue 83 10 ]

[ Issue 10 ] BE Africa

Flying through turbulence Comair Comair Ltd continues to deliver operational excellence and consistent profitability in what can only be described as an economic headwind: its CEO Erik Venter explains how words by

John Oâ&#x20AC;&#x2122;Hanlon

research by

Stuart Platt

BE Africa [ Issue 10 ]

British Airways operated by Comair Boeing 737 800

ho would invest in an airline? The industry is facing a lot of challenges right now with escalating fuel prices, reduction in passenger volumes caused by the global recession and arguably the growth of technology that allows people to communicate and confer without the need to travel. These are things that affect airlines all over the world, but in South Africa life is even more challenging for a private sector airline operator that

[ Issue 10 ] BE Africa

has to compete with the heavily subsidised national carrier South African Airways (SAA) and its low-cost brand Mango. The government, by taking a largely anti competition stance and allowing SAA to increase capacity in a shrinking market, has done no favours for the industry. Such is the environment in which Comair operates. Dating back to 1946 the JSE listed company has been successfully operating in southern Africa for nearly 70 years. Since

Comair

“We don’t have to go through major change management programmes every time we want to make an improvement!”

1991 it has been operating local and regional services under a licence agreement with British Airways, and in 2001 it launched South Africa’s first no frills airline kulula. com. Erik Rudolph Venter, a chartered accountant, joined the company 20 years ago and has been the Chief Executive Officer of Comair Ltd since 1 December 2011. He is a pragmatist, and entirely sees the point of the banks and investors who tell him they would never invest in the airline industry. “I

BE Africa [ Issue 10 ]

ATNS

Air Traffic and Navigation Services (ATNS) State-Owned Company (SOC) In our 21 years of existence, we have seen the growth of the South African and global aviation industries. We have faced a myriad of challenges. And we have achieved notable and significant milestones along the way. Be that as it may, we have discovered the most innovative ways of delivering world-class safety and operational performance. ATNS is very concerned about the current aviation crisis resulting from the economic downturn, and how this could affect relations between ANSPs and airlines. Recognising the need to support the airline community in its efforts to reduce costs, we have since agreed to seek short-term initiatives, in close collaboration with our clients, including Comair. ATNS has also noted that airlines require reliable information, such as ATM and other ATM-related trends and developments. In this regard, ATNS is transparent at all times and offers proof of active cost and efficiency management to all its clients. ATNS regularly interacts with COMAIR on all relevant operational matters. The two organisations have worked closely on numerous projects, such the implementation of the RNAV (GNSS) procedures at the King

Shaka International Airport in Kwa-Zulu Natal. As is procedure, the regulator requested trials to be conducted before these procedures could be implemented. Following a well-defined programme of action (POA, this process was undertaken without a glitch. Still on procedures, Lanseria Airport Management has contracted ATNS to design instrument flight procedures for its new runway, which includes the Advanced RNP procedures. These procedures enable aircraft to access airport with terrain and airspace limitations. This is a first of its kind in Africa. Kulula - a low cost airline under Comair - is currently trialing the Advanced RNP and preliminary results indicate that these procedures will be approved for use at Lanseria Airport - in the last quarter of this year (2014). This is an exciting milestone for which Lanseria Airport management should be commended. In the main, the airline operators will benefit significant by using the advance RNP, in that it will reduce the operating costs, noise and CO2 emissions. Kulula.com operates daily flights from Lanseria International Airport to Cape Town, and Durban. ATNS continues to serve the ATM community by deploying leading technologies with foresight,

â&#x20AC;&#x153;ATNS regularly interacts with COMAIR on all relevant operational matters. The two organisations have worked closely on numerous projectsâ&#x20AC;?

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as well as on the continual improvement of safety levels. We have prioritized sustainable development by minimizing our own carbon footprint, and seek to continue developing and helping our stakeholders to minimize the environmental impact of their operations through flight efficiency programmes and other best practice initiatives. While our Vision is to be the preferred supplier of air traffic management solutions and associated services to the African Continent and selected international markets, our mission, that of providing a safe, expeditious and efficient air traffic management solutions and associated services, has been a building

block in our quest to capture the market share within the continental aviation sphere. To all our valued stakeholders, engagement and collaboration are deeply embedded in our quest to keep our skies safe. And that is through proper maintenance of sound relations with them. The effective maintenance of such carries with itself proper understanding of the “issues” that we are addressing. And that’s exactly what we’re doing with Comair. +27 11 607 1000 marketing@atns.co.za www.atns.co.za

BE Africa [ Issue 10 ]

Comair ticketing staff

wouldn’t invest in a fund of airlines either!” So is he in the wrong job? Not a bit of it. Comair not only outperforms other airlines but a lot of other industries that are not seen as high risk. It has an astonishing record of declaring an operating profit in every one of its 68 years of existence, remarkable enough in itself but quite extraordinary in the South African climate of the last few years. So think again, investors, he says. Look at the company not the industry! The chief explanation he has for Comair’s success is its people. “We hold on to people for a very long time. Long service awards for ten years service or more are held by about 25 percent of our staff at any one time. There is a lot of experience here compared with our competitors in the market.” And the reason they stay is related to the flexibility and adaptability to change that is at the heart of the corporate culture. In the aviation industry more than most, he believes, it is essential to build that flexibility into people’s contracts and instil a continuous improvement mindset: “Everyone is used to the fact that things are always evolving, and we don’t have to go through major change management programmes every time we want to make an improvement!” People and the flexibility they bring to the company are probably the two main reasons Comair has dealt so well with the volatility of the airline market says Venter. The cost environment has imposed a harsh discipline on airlines and not all have been able to adapt. “Look at our 14 year history since 2001: costs have risen by about 168

“We hold on to people for a very long time. Long service awards for ten years service or more are held by about 25 percent of our staff at any one time”

[ Issue 10 ] BE Africa

Comair

British Airways operated by Comair Boeing 737 800

percent against a consumer of products such as the Did you know? price index rise of around 98 prestigious Executive Club frequent flyer programme. percent in South Africa over Some years ago there were a the same period. At the same 68 number of similar franchise time the average air fare has Profitable years arrangements round the world, increased only by 37 percent, for Comair though now Comair is one of so we have had to close that only two airlines to remain in gap and that requires constant 26 the scheme. “It has been a very innovation and improvement.” Boeing planes successful arrangement both More efficient aircraft, better in its fleet for Comair and for BA in South route planning, working with air Africa – we are able to make traffic management to improve all the operational decisions landing patterns, saving weight and tailor the service to local requirements, on the aircraft – these are all strategies that while benefiting from the reputation of the have been adopted. top brand in the business.” Comair’s full service offering is flown In 2001 Comair added another brand, in the livery of British Airways (BA) under the low-cost, green-liveried kukula.com a licence agreement dating back to 1996. (slogan: Full-on Travel). Today most of the The British Airways brand brought with it popular domestic routes in South Africa are a rich heritage of stylish travel, reputation served by both carriers. The major routes for service excellence and a wide range

BE Africa [ Issue 10 ]

are Johannesburg to Cape Town (the tenth busiest route in the world with 4.5 million passengers a year), Johannesburg to Durban, Durban to Cape Town and Johannesburg to Port Elizabeth. “After these,” says Venter, “the numbers get smaller, especially when we look at the various African destinations we serve, though some, like Harare, Mauritius and Victoria Falls are quite busy.” He is constantly looking for new opportunities. There is undoubtedly a lot of growth taking place within many economies

of sub-Saharan Africa, but it is growth from a low base, he warns, and even respectable percentages resolve into low volumes. “I don’t think Africa is quite there yet in terms of potential for passenger volume growth. A lot of hurdles remain to be overcome.” A cautious approach to expansion that will sustain the company’s profitability record. More immediate returns are being generated in cer tain aspec ts of diversification. Taking a travel business approach Comair is developing its revenue

“It has been a very successful arrangement both for Comair and for BA in South Africa”

Kulula Boeing 737-800 in flight

[ Issue 10 ] BE Africa

Comair

Happy staff stading in front of the new airport ticket counters at OR Tambo International Airport

streams from car hire, hotel bookings and other value added services. “That segment of the business is starting to grow quite nicely. We have done a successful job of developing our airline lounges and we see possibilities in developing conference facilities and dedicated lounge facilities for other partners.” The company has also set up its own catering facilities at Johannesburg and Cape Town and is applying for licences to do third party catering for other airlines, he adds. “We are finding we can run a much more efficient catering operation than some of the legacy catering businesses were able to provide.” Another important revenue stream over the years has been third party pilot training. With simulator facilities for Boeing aircraft as well as ATR regional jets, Comair can offer

training at a much better rate than anything available in Europe or the USA. This is a service with potential for expansion. But Comair understands training. “We have to train almost everyone ab initio for Comair whether front line staff, finance staff, or cabin crew.” Extensive facilities at the Comair training centre next to O.R. Tambo International Airport provides the knowhow and instils the soft skills vital to the Comair culture. As with any airline Comair needs to keep its assets up to date, and this is the largest area for investment, with an ongoing programme to completely renew the 26 strong Boeing fleet, or at least the 18 that it owns rather than leases. Though it’s a big balance sheet item the replacement of Boeing 737-300s with the larger 800s resulted in a 15 percent increase in capacity that was a major factor

BE Africa [ Issue 10 ]

Flight simulator at the Comair Training Centre (CTC)

[ Issue 10 ] BE Africa

Comair

“We are finding we can run a much more efficient catering operation than some of the legacy catering businesses were able to provide”

in the 23 percent rise in revenue over the first half of the current financial year. Being more fuel efficient these aircraft also offset escalating fuel prices. Four new Boeing 737800s were introduced into the kulula fleet last year, and four more will be delivered by the end of 2015 followed by further orders by 2020, he says. Another important ongoing investment is in the migration to a new enterprise solution platform. Says Erik Venter: “We have implemented the Sabre airline solution system, which has already delivered benefits both in revenue and cost efficiency. The basic inventory hosting went live in July 2012, though that in itself does not deliver huge benefits. It’s the bolt-on modules that bring measurable efficiencies. We have been continually adding improvements and new functionality over the last 24 months and will continue to do that.” As with any ERP platform, there’s huge suite of upgrades and new products to choose from – Comair will avail itself of the most relevant functionality. These days TV and newspaper advertising are in rapid decline, with the rise of instant access to news and the ability to skip ads when watching programmes by satellite. Social media have stepped into the resulting space, and Comair is determined to make full use of the new platforms. “It’s essential to keep up to the minute with what is happening in that space especially in Africa with the reliance of so many people on mobile devices to stay in touch. It is a whole new way of thinking and requires a very different strategy. You get instant response from customers and

instant feedback compared with the old ways of communicating with customers.” It has meant getting social media addicts onto the marketing team, who understand the dynamics of the twittersphere: “People respond at 3.00 on a Sunday morning, and by 8.00 you have a trend growing across social media channels – if you are not alive 24/7 you will miss it!” As the last remaining independent privately owned domestic scheduled airline operator in South Africa Comair has a responsibility to its employees, customers and shareholders to secure a level playing field in what is after all an over-traded market, concludes Erik Venter. While in no way challenging the position of SAA nor arguing it should not be subsidised, he feels that it should share the risk as well as the rewards, and be subject to the same rules of competition that protect the industry in other jurisdictions. Things may change after the general election in May but even in the present climate the message is loud and clear – Comair is a great investment, as proved by its confident declaration of an interim dividend based on its results in the half year to December 2013 – resulting in a ten percent rise in its share price.

Comair

+27 (0) 11 921 0111 cr@comair.co.za www.comair.co.za

BE Africa [ Issue 10 ]

Kenya Airports

Flying the fla

By focusing on greater efficiency, quality service and inc is helping to facilitate the grown of the country words by

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Will Daynes

Authority (KAA)

ag for Kenya

creased airport capacity, Kenya Airports Authority (KAA) yâ&#x20AC;&#x2122;s aviation sector as well as the wider economy research by

Stuart Platt BE Africa [ Issue 10 ]

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s first world economies seek new territories for innovation, trade expansion, conference tourism and investment, Kenya, as one of the leading vibrant stable economies in Africa, has provided a hugely viable and attractive option,” states Dominic Ngigi, Corporate Affairs Manager of Kenya Airports Authority (KAA). “This, coupled with numerous other factors, has helped contribute to the buoyant projections for the aviation industry in the country over the next 20 years, with global passenger traffic and air cargo each projected to grow by 5.0 percent per annum.” In the last year alone Kenya has played host to the initiation of several landmark projects, from the creation of Konza City, dubbed Africa’s first silicon valley, to the development of road, rail, port and airport infrastructure. Such advances have resulted in the entry of new airlines from what are referred to as “non-traditional destinations” looking to maximise on trade and tourism opportunities in the country. Furthermore, the discovery of oil in the region and the much anticipated LAMU to Southern Sudan project will also contribute to the growth of aviation in Kenya. Established through an act of parliament in 1991, KAA has since provided the country’s airports and airstrips with safe, reliable and efficient management. Today it boasts an

“Going forward passenger traffic is projected to grow by five percent, cargo eight percent and fleet movement three percent per annum”

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The artistic impression of JKIA and the look once complete

Kenya Airports Authority (KAA)

“The stability of the Kenyan economy has enabled KAA to post good operational results”

employee base of 1,820 individuals split across numerous departments including, projects and engineering services, marketing and business development, finance, legal, corporate planning and strategy, procurement and logistics, and operations, safety and security. “The stability of the Kenyan economy has enabled KAA to post good operational results,” Ngigi continues. “The economy improved by 4.6 percent in 2012 and is projected to have expanded by 5.7 percent in 2013, and by a further six percent in 2014 en-route to the ten percent envisaged by Kenya Vision 2030. In 2013 Kenya saw passenger numbers reach 8,919,254, cargo volumes hit 294,353 metric tonnes and aircraft movements numbering 269,923. Going forward passenger traffic is projected to grow by five percent, cargo eight percent and fleet movement three percent per annum.” With an increase is demand for aviation services comes the need to expand and in some cases modernise, and examples of this work can be found throughout KAA and across the various airports it manages. Perhaps the best examples of this work can be found occurring in and around Kenya’s main airport Jomo Kenyatta International (JKI). One of the biggest ongoing undertakings is the building of the brand new Terminal 4 structure, a project which commenced in September 2010 at a cost of $93 million, the scope of which includes the construction of

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Kenya Airports Authority (KAA)

Eng. Betty Kamunde briefs the JKIA project financiers on the status of the expansion

â&#x20AC;&#x153;In January of this year KAA signed a contract with M/s Roder of Germany to facilitate the construction of an interim domestic/international, arrival and departure terminal at JKI Airportâ&#x20AC;?

a three storey passenger terminal building with floor area of approximately 21,000 square metres. Terminal Unit 4 is due for partial completion in July 2014, at which point passengers will begin to use the new building, with full completion expected by 31 March, 2015. Terminal 4 will also feature an International Arrivals facility, a permanent facility providing arrival processing functions that will effectively make Terminal 4 an independent terminal.

In January of this year KAA signed a contract with M/s Roder of Germany to facilitate the construction of an interim domestic/international, arrival and departure terminal at JKI Airport. The $23 million contract will cover the building of a facility which, at a size of 10,000 square metres, will service some 2.5 million passengers per annum. The terminal itself is expected to serve these passengers for a total of

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Kenya Airports Authority (KAA)

Tradewinds Aviation Services Tradewinds Aviation Services is a reputable Ground Service Provider to airlines and airports in Kenya. With its initial operations at Jomo Kenyatta International Airport (JKIA), Tradewinds has increased its countrywide footprint to include Mombasa (MIA), Kisumu (KIA), Malindi (MYD) and Eldoret (EDL). Tradewinds is able to handle all types of aircraft ranging from light to AN225.The company comprises a highly qualified and experienced team which is flexible and quick to meet new challenges in the ever-changing market place. Tradewinds prides itself on providing world class ground handling services and aviation solutions, and has acquired affiliations with leading industry organizations like ASA, IATA, NBAA and has recently acquired ISAGO certification. Tradewinds is proud to be associated with Kenya Airports Authority as a stakeholder. www.tradewindskenya.com

five years, before then being converted for an alternative use. Equally integral to the expansion of JKI is the construction of the airportâ&#x20AC;&#x2122;s second runway. Measuring 5,500 metres in length the new runway will allow the airport to support direct flights to New York. Its conceptual design phase commenced in August 2012 and was completed in February 2013. Kenya Airports Authority is today awaiting confirmation of funding from the government in order to proceed. Elsewhere, JKI is also playing host to the renovation, modification and expansion of the ring building which encompasses Terminal Units 1, 2 and 3, as well as the airportâ&#x20AC;&#x2122;s arrival building. The rehabilitation is set to modernise and upgrade the current JKI terminals. This will include the demolition and reconstruction of the Arrivals Terminal building which was destroyed in a fire. The procurement process is currently underway, and the submission date for return of bids is 2 October, 2014.

A section of the new Terminal 4 now near completion

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Did you know? 8,919,254 Total number of air passengers recorded in Kenya in 2013 $93 million The cost of building JKI Airport’s brand new Terminal 4 structure

Proposed Re-design of Unit 1, 2, 3 including Terminal 4

1,820 Total number of employees split across various departments

“We find ourselves in the process of sourcing for strategic partners that will assist in the development of all manner of new structures and facilities” It isn’t just JKI that is reaping the rewards of expansion and modernisation however. Elsewhere within the country KAA is overseeing a number of ongoing projects. These include at MOI International Airport, where the designing phase is underway in preparation for the rehabilitation of the runway, taxiways and apron of the airport, as well as the upgrade of the power distribution system, work that is expected to commence in April 2015. At Kisumu International Airport work commenced in March 2012 to strengthen and

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widen the airport’s runway, cargo apron and car park, with completion expected in Issue 10, while at Malindi Airport work is almost complete on the construction of a brand new terminal building. “On a collective level we have also moved forward with the automation of our business processes, implementing the Enterprise Resource Planning (ERP) System and an Airport Operations Database (AODB) system within our airports,” Ngigi says. “The ERPsystem has integrated all data and processes of the organisation into a unified system to

Kenya Airports Authority (KAA)

3D model of the 20 Million Greenfield Passenger Terminal now under construction

ensure that KAA has accurate and real-time data and enhances a paperless system. The Airport Operational Database (AODB) on the other hand has facilitated the main airport processes, ensuring they are coordinated and synchronised and provides a centralised database for all airport stakeholders.” A similar universal development has also seen KAA introduce an Identity Management System across the check-in kiosks present at its various airports. “The implementation of this system has greatly enhanced security within all of our airports,” Ngigi enthuses. “The new system has an added UV thumbprint security feature, making it difficult to forge or duplicate. The system is networked to all airports, enabling security officers to share vital information.” Clearly always focused on the future, KAA has taken great efforts to develop many strategic partnerships designed to support business development within its

airports. “To date the types of project that we have achieved through strategic Public Private Partnerships, based on a Build Operate Transfer (BOT) agreement, include transit shed warehouses, food courts and airline hangers,” Ngigi concludes. “Now we find ourselves in the process of sourcing for strategic partners that will assist in the development of all manner of new structures and facilities, from duty free facilities and airport transit hotels to medical facilities, in-flight catering facilities, transit shed warehouses and fuel service stations.”

Kenya Airports Authority (KAA)

254-02-6611000 info@kaa.go.ke www.kaa.go.ke

BE Africa [ Issue 10 ]

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Kenya Port

the transpo

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

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John Oâ&#x20AC;&#x2122;Hanlon

ts Authority

ortation hub

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

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n the past the port has been controlled by the Portuguese, the sultan of Zanzibar, and the British. Today, Kenya Ports Authority (KPA), a state-run enterprise, is responsible for the port. The city of Mombasa, its port and the facilities around it, as well as the railway that runs from the coast to Rwanda Uganda and Burundi are important to the economy of the whole of East Africa. Transit trade to these countries, the DRC, Tanzania and South Sudan accounts for 30 percent of the port’s throughput and this proportion is growing by up to ten percent a year. Mombasa is Kenya’s only international sea port. The port has grown rapidly in recent years as a transshipment node for fuel and containers. KPA aims to increase its container capacity to 1 million twenty foot equivalent units (teu). This means that ships with a deeper draught will be entering the port. To accommodate them, it was necessary to widen the access channel and the turning basin, deepen some landing stages along the quays, and build a new container terminal. The work started in June 2011. The existing channel was deepened at nine different points and around 6.5 million cubic metres of material dredged up by the contractor Van Oord used to construct the container terminal, thought to be the only berth on the east coast of Africa to be built on reclaimed land. The project was successfully completed in April 2012, and container capacity increased

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

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Rubber tyred gantry crane

Kenya Ports Authority

“The Lamu megaport is one of our major projects this year” by 250,000 teu to a nominal 800,000, though in fact the total amount handled is already more like 900,000 a year thanks to careful planning and the use of off-port container freight stations. With the completion of Berth 19 last year the expanded container terminal can now handle three 250 metrelong panamax vessels at the same time. To cope with these, the new terminal has been equipped with three ship to shore gantry cranes, eight new reach stackers and 27 terminal tractors. It has 120 reefer hookups. Now a second container terminal is being planned for the port as a further extension of Mombasa’s capacity. “The new project will complement the recently launched berth number 19 and the general growth in volumes of cargo arriving at the port,” said KPA managing director Gichiri Ndua. This is a major capital project, with funding provided through Japan International Cooperation Agency (JICA), and the work is being carried out by Toyo Construction Ltd, also of Japan. It will be completed in stages, with three new berths providing a total 900 metres of space, at an alongside depth of 15 metres. The first phase is scheduled for completion by 2016 comprising Berth 21, 320 metres in length, a side berth 20 with 11 metres draught. Berth 21 will have the capacity to handle 450,000 teu, with two ship to shore cranes and four rubbertyred gantry (RTG) cranes supported by a 50 hectare stacking yard. The second and third phases are due to be built concurrently and delivered by 2019, adding two further berths (21 and 22, with lengths of 320 and 350 metres respectively).

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Your preferred Logistics Partner Mitchell Cotts offers total logistics solutions for the movement of goods in and out of East and Central Africa and, through our network of selected international business partners, co-ordinates movement of goods from any origin to any destination. Mitchell Cotts services specifically include: • Container Freight Station (CFS) • Negotiating, arranging and fully co-ordinating shipments (whether by sea, air, road, or rail) • Customs and Excise Clearance • Warehousing - including specialist facilities like bonded warehouses • Collateral Management • Packing and Removals - domestic and corporate relocation • Insurance for all aspect of the movement and storage of goods • Advice and information on various relevant legislation, tariff schedules and customs facilities www.mitchellcotts.co.ke

Kenya Ports Authority

These will be equipped with some eight ship to shore cranes and 20 RTGs and with a further 50 hectare stacking area. Once these facilities are in place the Port of Mombasa will be able to handle a throughput of 2.5 million teu per annum. The emphasis on container development reflects the growing global shift from bulk cargo and breakdown goods to container traffic, and the huge investments being made around the world to keep up with it. Container throughput already accounts for more than 40 percent of the tonnage that passes though Mombasa, and the local infrastructure has struggled to cope. However that will all change following the completion of these projects, at least as far as the port itself is concerned. Meanwhile the port authorities have shown they can play a good game with a poor hand. Despite constraints the port has improved its productivity significantly over recent years, recording 22 crane moves per hour and removing many bottlenecks. Waiting time for vessels is now down to internationally acceptable standards, generally less than two days. Though transshipment still only accounts for about one percent of total traffic delaying the establishment of Mombasa as a transport hub for the Indian Ocean, the aim following commissioning of the new container terminal in 2016 is precisely that. Mombasa is ideally positioned to service the many smaller ports of the Seychelles, Mauritius, Madagascar or Zanzibar, which can no longer berth the large container ships now coming into service.

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

Mitchell Cotts With a strong regional presence, committed team and proven expertise, Mitchell Cotts has remained top of its game in the provision of Logistics services in the Freight Industry. The Company’s head office in Mombasa is located in Kibarani very close to the port. The Nairobi office is located on Mombasa road, past the turn off into JKIA and opposite Syokimau railway station. The Airfreight Division is at the Jomo Kenyatta International Airport Freight Terminal. To facilitate Kenya - Uganda cross-border trade, we have a hub on the border town of Malaba. Our services: Dry port operations (CFS), Road, air and sea freight, value add warehousing and many more. www.mitchellcotts.co.ke

Crane operator

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

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

Kenya Ports Authority

MSC container vessel docked at the port

could become the country’s biggest ever civil engineering project. It includes the construction of a 32-berth port, three international airports, and a 1,500 kilometre railway line. A new oil refinery, in nearby Bargoni, and an oil pipeline are also planned. The pipeline would run to Kenya’s Eastern Province before splitting, with one branch running to South Sudan’s capital, Juba, and another through Moyale in the north to Addis Ababa. A 1,730km road network is also being planned. To give an idea of the scale of this project for KPA, the Lamu megaport will be Africa’s largest port, three times the size of Mombasa. Its 32 berths will give a total quay length of

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

Kenya Ports Authority

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

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Mediterranean Shipp

Shipping to and fr

Backed up its fleet of container vessels and m has been linking South Africa directly words by

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Will Daynes

ď ľ research

ping Company (MSC)

rom South Africa

multiple service divisions, MSC South Africa y with the rest of the world since 1978

research by

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MSC South Africa operates a successful reefer cargo division

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Mediterranean Shipping Company (MSC)

ounded in 1970, Mediterranean Shipping Company (MSC) has since transformed itself from a small conventional ship operator into one of the world’s largest and best known maritime transportation groups. By providing an unparalleled service network through its various offices around the globe, and through the expansion of its fleet, MSC has successfully consolidated its position as the second largest carrier in terms of container slot capacity and the number of container vessels operated. It was the founding of MSC’s EuropeSouth Africa service in the 1970s that resulted in the establishment of Mediterranean Shipping Company (MSC) South Africa. In adopting the group’s unique, innovative and flexible approach to shipping MSC

levels the company delivers to the shipping community. Perhaps equally important however is also the company’s willingness and ability to initiate change in order to the meet the constantly evolving needs of its clients. MSC South Africa operates a successful reefer cargo division, tasked with shipping temperature controlled commodities such as fruit, fish and meat to a number of destinations. In addition to its reefer equipment that comes in both twenty and forty foot capacities, the company also offers controlled atmosphere and specialised protocol shipments. The goal of the reefer division is to maintain the cold chain throughout the voyage so as to preserve the commodity being carried. By keeping transit times to a minimum the division is also able to extend the life of the

“The success of the business, particularly during the course of the last decade, can in large part be attributed to MSC’s Quality Management System” South Africa has grown to become one the biggest users of South Africa’s ports. The large fleet of container vessels that the company today boasts has allowed it to expand to deliver services along a number of major trade routes which link South Africa directly with Europe, the United States, Asia, the Middle East, Far East and Australia. Closer to home links are also provided between South Africa and numerous key ports along Africa’s West and East Coasts, Madagascar and several Indian Ocean Islands. The success of the business, particularly during the course of the last decade, can in large part be attributed to MSC’s Quality Management System. This system aims to achieve continuous improvement throughout the group, especially when it comes to service

product in question. Today MSC South Africa’s main reefer markets include the UK, the United States and Canada, the Middle East and the Mediterranean, while business continues to grow at a healthy pace in East and West Africa, and in the Far East. As the business has grown, MSC has made sure to invest in the acquisition of a number of characteristic office buildings, each of which has become something of a landmark in their respective locations of Durban, Johannesburg, Cape Town, Port Elizabeth and Pretoria. Particular attention however has been paid to the restoration of the company’s Port Elizabeth offices, housed in a building that has long held the distinction of being recognised as a national monument. The restored building was officially opened in 2004 and today is

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Recent investments have seen the arrival of 7 tandem lift ship-to-shore cranes at TPT’s Durban Container Terminals (DCT), Africa’s largest and busiest container terminal.

Transnet Port Terminal

Transnet SOC Limited, South Afric

We are responsible for commercial handling services of sea-r

transhipments in containers, mineral bulk, bulk and automotive. TPT commercial ports namely Richards Bay, Durban, East London, Port Eli

Karl Socikwa is the Chief Executive at the helm of the TPT business. Th 6000. Billion have been allocated for TPT and its 13 terminals as part of the market demand strategy (MDS). This amount will see TPT boost terminal capacity, develop infrastructure and reduce the cost of doing

Transnet Port Terminals services customers across a broad spectrum container industry, the general shipping industry, vehicle manufac industry, freight forwarders, cargo agents and legal entities (e.g. custo TPT employs over 6000 skilled and dedicated people geared to see our market demand strategy through to completion over the next six years.

For more information, please visit our website on www.transnetport

ls (TPT) is one of five operating divisions of

caâ&#x20AC;&#x2122;s state-owned freight transport and handling company

route freight across imports, exports and T operates terminals in seven South African izabeth, Ngqura, Cape Town and Saldanha.

he company has a staff complement of over f the R300 billion capital investment termed its cargo handling equipment base, create g business in Southern Africa.

m of the economy, including shipping lines, cturers, agriculture, steel and the mining oms).

tterminals.net

transnet port terminals

Delivering freight reliability Transnet Port Terminals (TPT) is home to two of the world’s top 120 container terminals Cape Town, Durban and Drewry’s fastest growing container terminal in the world Ngqura Container Terminal (NCT). The company is one of five operating divisions of Transnet SOC Limited, South Africa’s state-owned freight transport and handling company investing R300 billion in the expansion of port, rail and pipeline infrastructure between 2012 and 2019. A total of 13 terminals are operated by this South African terminal operator in seven of the country’s commercial ports namely Saldanha, Cape Town, Ngqura, Port Elizabeth, East London, Durban and Richards Bay. Recent investments have seen capacity creation across the company’s terminals including Africa’s biggest and busiest container terminal in the Southern Hemisphere, the Durban Container Terminal (DCT). Capacity

TPT’s transhipment hub Ngqura Container Terminal (NCT), ranked first twice in 2012 and 2013 in a Drewry Maritime Research for being the fastest growing terminal in the world

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will increase to 4 million TEU after the extension and deepening of the berth on the North quay at DCT. Cape Town Container Terminal (CTCT) recently completed upgrades, the construction of additional reefer plug points and the extension of the quay wall to accommodate 1.4 million TEUs per annum. Similarly, the Ngqura Container Terminal (NCT) – South Africa’s transhipment hub is in its second phase of development to increase its capacity to 800 000 TEUs with complementing equipment. The introduction of the market demand strategy (MDS) has influenced TPT to increase its footprint in Africa and in the world offering improved connectivity to existing and new markets over the next six years and beyond. The company is creating capacity ahead of demand, growing and enhancing its skills base across its four sectors namely containers, bulk, break bulk and automotive. TPT’s growth intentions have been witnessed

TPTâ&#x20AC;&#x2122;s Cape Town Container Terminal after berth extension, making it debut in the Worldâ&#x20AC;&#x2122;s Top 120 Container Ports Â

through its extensive equipment investment in the past 12 months across all its other terminals namely Richards Bay Dry Bulk and Multi-Purpose Terminals (178km North of Durban), Port Elizabeth Terminal, Saldanha Bulk Terminal, Multi-purpose and Automotive Terminals. This includes multi million rand ship loaders, mobile cranes, ship-to-shore cranes, multi million rand unloaders and varying break-bulk equipment for its bulk, break bulk, agricultural and automotive terminals. Furthermore, TPT has signed several memorandums of understanding recently to leverage on unique opportunities presented by partners across the supply chain and industry globally. Of these, is the partnership with construction and engineering group Aveng in Mtwara, Tanzania where a new port is currently under development and proposals are open to eligible operators. There is also a number

of other value-add services and information sharing partnerships in place and in progress. The combination of all these efforts and plans is aimed at TPT fulfilling its role in growing Africa trade and enabling landlocked countries to trade internationally. The company prides itself with a workforce of over 6000 dedicated employees and intends growing this number for continued inroads in job creation. The work in progress to develop all our terminals to world-class standards with an ability to accommodate future generation vessels, will ensure TPT offers all our customers superior value, efficient service and that we deliver freight reliably.

+27 31 308 8000 tptcallcentre@transnet.net www.transnetportterminals.net

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Tel: 021-8630266/7/8 Fax: 021-8630269 Email: huddletp@mweb.co.za Street: Farm Lo Andre, R45, Simondium, 7646 Postal: PO Box 603, Paarl South, 7624

Long Distance Haulage We started our company in 2002. We specialise in long distance haulage to Gauteng, Durban and Port Elizabeth, handling containers, break bulk and steel loads. Additionally, all of our trucks are equipped to handle hazchem loads. We have our own super links, but we also have several dedicated transporters that work for us on a permanent basis.

Mediterranean Shipping Company (MSC)

MSC has diversified to include a Container Depot Company

â&#x20AC;&#x153;Depicting the changing times of the shipping industry over the centuries, it is rather aptly titled the Millennium Windowâ&#x20AC;?

recognised for the elaborate stained glass window that adorns its entrance. Depicting the changing times of the shipping industry over the centuries, it is rather aptly titled the Millennium Window. In moving with the times the company has also enshrined an ability to diversify into other areas of business. Such diversifications include the creation of a Container Depot Company and an Intermodal/Landside Logistics Company. Together these companies help

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ANE ANE INDUSTRIAL SUPPLIES (PTY) LTD.

The first official Woodward Govenor Agent for the Sub-Sahara region since 1973, making us the leaders in the service, repair, installation and commissioning of the Woodward Govenor range on the marine, industrial, milling and mining sectors. Marine services include: • Sales, repair, overhauling and servicing of pumps, injectors and marine engines • Agency to supply Wencon ship repair kits • Materials handling to warehousing and loading dock facilities Contact us: 35 Acutt Avenue, Durban North, 4051, South Africa P.O. Box 40117, Redhill, 4071, South Africa Tel: +27 31 579 44357 • Fax: +27 31 579 4359 Email: roy@ane.co.za • www.ane.co.za

We are proud to be associated with MSC.Relation is what we share, Success is what we pray and continual growth and progress is what we wish for you. Established in 1989 by its founder, Roy Naidoo, SA Fasteners have since become a leading force in shipping, automotive, civil, building and furniture industries with quality fasteners and hardware supplies. SA Fasteners offers one stop shopping for all your Hardware and Fasteners requirements. As a Master Stock Distributor, SA Fasteners offers immediate delivery on stock items. We are always ready to give you a Competitive Edge by saving you money and by being your quality on time shopper. Suppliers of all types of industrial fasteners and a wide range of tools and consumables. In our commitment to growing the S.A. economy and improving the participation of black South Africans in the formal economy, SA Fasteners employs 99% black South Africans

Community action changes people’s lives,embodies the spirit of hope and improve communities. Helping to make our communities a better place to live in

PO Box 18265, Dalbridge 4014, 161 Gale Street (Magwaza Maphalala), Durba 4001 | Tel: 031 300 7300 • Fax: 031 305 7620 43 Circuit Road, Westmead, Pinetown, 3610 | Tel: 031 700 5522 • Fax: 031 700 5090 | www.safasteners.co.za

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Mediterranean Shipping Company (MSC)

provide the type of one-stop service that MSC South Africa has become known for. Individual depots can be found in Cape Town, Durban, Johannesburg, Rosslyn and Port Elizabeth. The Rosslyn depot boasts its own rail siding and provides particular benefits to clients in the motor industry as it provides easier access to their manufacturing plants. Meanwhile, the Uitenhage depot in Port Elizabeth is situated within the Nelson Mandela Bay Logistics Park and is also strategically situated in close proximity to a large global motor manufacturer. The most recent addition to the companyâ&#x20AC;&#x2122;s depot portfolio can be found within the Industrial Development Zone in East London, Eastern Cape. MSC Logistics, the intermodal arm of the company, has a longstanding contractual relationship with Transnet Freight Rail (TFR), the service provider of South Africaâ&#x20AC;&#x2122;s rail

ANE Industrial Supplies (Pty) Ltd Established over 40 years ago, Transport & Marine, currently operating under the holding company name of ANE Industrial Supplies while slowly reverting back to its original name, has grown into one of the leaders in the mechanical & electronic prime mover & generation control industries in the subSaharan region. The company was appointed as the first official Woodward Governor Service Facility outside of the USA in 1973, thus representing the leaders in the manufacture & design of electro mechanical, mechanical & electronic prime mover control systems for both marine & industrial applications. www.ane.co.za

Aerial view of Cape Town harbor

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“MSC South Africa has grown to become one the biggest users of South Africa’s ports”

Did you know? 1970 The year that Mediterranean Shipping Company (MSC) was founded 1978 The year that MSC South Africa was founded 1998 Year which MSC South Africa’s technical division was expanded 2004 Opening of the of the company’s restored Port Elizabeth offices 452 Number of dedicated local offices around the world 155 Number of countries in which MSC opperates 700 Number of trailers controlled by MSC Logistics

MSC is one of the biggest users of the South African ports

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300 Number of trucks controlled by MSC Logistics

Mediterranean Shipping Company (MSC)

MSC South Africa is well known for providing a one stop service

corridors. The strong relationship between the pair allows MSC to offer TFR competitive rates of business, good transit times between ports and inland rail terminals, and up to date tracking through its electronic connections to its clients’ computer systems. MSC Logistics controls more than 700 trailers, more than 300 trucks and a large fleet of Owner Drivers, truck owners commissioned as sub-contractors. Together these assets cover a large road transportation service of full deliveries, empty returns and the repositioning of empties for export demand. Such resources also allow it to offer local cartage within 300 kilometres of the major ports and inland rail terminals in Cape Town, Port Elizabeth, East London, Durban, Johannesburg and Pretoria. Another venture that has witnessed a great deal of success in recent years is MSC

South Africa’s technical division, which was expanded in 1998 to include a world class, full scale engine repair and maintenance facility, headed up by a team of experienced and highly skilled South African and Italian engineers. This division of MSC South Africa, much like the company itself, has gone from strength to strength since the emergence of a democratic South Africa and shows no signs of slowing down.

Mediterranean Shipping Company (MSC)

 +27 21 405 2000  distribution@msc.co.za www.mscsouthafrica.com

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Andrew Howes Photography

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Your health in good hands Ascendis Health Chief Executive Officer Dr Karsten Wellner discusses the philosophy and values behind Ascendis Health, the home of some of South Africa’s leading health and care brands words by

Will Daynes

 research by

Peter Rowlston

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Supashape product range

ealthy Home, Healthy You.â&#x20AC;? That is the slogan that Ascendis Health lives by on a daily basis. While most traditional pharmaceutical companies focus their efforts almost exclusively on the intervention space of medical care, the best examples of products in this field being antibiotics or anti-inflammatories, Ascendis Health focuses on what it calls the entire spectrum of life, providing preventative, intervention and chronic treatments targeted at plant, animal and human health.

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Ascendisâ&#x20AC;&#x2122; principle strategy is to create a synergistic group of health product brands that cover the value chain from imports of raw materials, manufacturing, brands and through to distribution to consumers through retail and direct selling channels. Supported by its controlling shareholder, Coast2Coast, the company has over 1,070 staff, possesses an executive team boasting over 20 years of experience in pharmaceutical and consumer products (FMCG) industries, and boasts international sales within 45 countries.

Ascendis Health

“In the field of preventative care we are providing brands and treatments that allow people to work on the self-healing propensities of their bodies”

“One could certainly say that we take something of a holistic view towards health and life,” explains Chief Executive Officer, Dr Karsten Wellner. “In the field of preventative care we are providing brands and treatments that allow people to work on the self-healing propensities of their bodies, supplement their nutrition or lifestyle in a healthy way and which gives them the opportunity to avoid a situation where they become immune system-depressed or susceptible to illness or a disease. Then of course there is the invention

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side, where we offer pharmaceutical products and medical devices, and the area of chronic medication where you have pharmaceuticals for long term application.” As a business, there are three core areas of growth that Ascendis Health continues to pursue in order to expand. These areas are acquisitive growth, where the company acquires other businesses into its family of brands, organic growth, whereby the company provides entrepreneurs with the means and foundation to grow within the Ascendis family,

and lastly synergetic growth, where it brings together synergies between its divisions and brands for the good of the collective. This latter area is of particular significance given the way Ascendis Health’s operations are broken down into three main divisions; Consumer Brands, Pharma-Med and PhytoVet. Within its Consumer Brands division the company offers products from the likes of the healthy ageing specialists, SOLAL Technologies, SSN (Scientific Sports Nutrition), Foodstate Nutritional Intelligence,

“The brands that Ascendis Health acquires share specific qualities, namely that each has already proven to be a success and has international growth potential”

Lean Muscle Building Stack

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Ascendis Health

Nimue Skin Technology product range

specifically when it comes to Nimue Skin Technology, Did you know? our sports nutrition products, B io b a la n ce and E VOX and our Pharma-Med division. Advanced Nutrition. Meanwhile, 45 countries Here the latter is able to provide subsidiaries PharmaChem and In which these companies with increased Surgical Innovations operate Ascendis boasts levels of scientific research within the Pharma-Med division, international sales and regulatory backing.” while the Phyto-Vet division As Wellner goes on to explain, includes products from EFEKTO, 60 percent the brands that Ascendis Health AVIMA and Marltons. Ascendis’ acquires share specific qualities, “Across the three divisions we acquisition are constantly working on shared namely that each has already success rate in areas of interest, so things like proven to be a success and has the last five years supply chain issues, IT issues, legal international growth potential. details and other areas in which “We believe very much in strong your typical small or medium brands developed by healthy and sized business may have previously lacked resilient businesses that have been around for the funds or resources to handle in-house,” some time. As such when it comes to investing Wellner states. “We are constantly working in businesses we only ever target those with strong identities and positive cash flows. While to ensure a deep level of integration between of course we have the need to corporatise our our divisions as well. A good example of this business, what we are particularly proud of exists between our consumer brands division,

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Commercial Publishing Ser vices

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Andrew Howes Photography

Ascendis Health

Karsten Wellner - CEO, Robbie Taylor - CFO and Richard Crouse - COO

“A key focus for the remainder of the financial year will be to continue delivering strong organic growth, integrating recent acquisitions and continuing to extract synergies” is the fact that at no point do we stifle the development of good entrepreneurial ideas. At the end of the day our aim is to give as much freedom as possible to our brands in order for these businesses to grow.” On 24 January this year the company issued a press release detailing the latest development in its acquisition programme, namely the 100 percent purchase of specialist medical company Surgical Innovations Limited and of Atka Pharma Limited. The acquisition of these two businesses was also

special in that they were the first two targeted acquisitions following Ascendis Health’s successful listing on the Johannesburg Stock Exchange in November 2013. “When it comes to securing acquisitions,” Wellner continues, “our success rate over the last five years is approximately 60 percent, which is quite significant. As with all of our acquisitions we are already looking at how to best integrate these businesses into our own, giving them additional support and ultimately providing them with fresh growth

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Andrew Howes Photography

Karsten Wellner CEO

Avima Grain Guard

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1989 â&#x20AC;&#x201C; 2001: Fresenius AG, Germany (DAX and NYSE listed Health company, 110,000 employees, $20bn sales). 2001 â&#x20AC;&#x201C; 2008: Fresenius Kabi, MD South Africa, Exec VP Africa and Middle East. 2 Production Units in SA and various subs, 700 staff; (products: clinical nutrition, generics, medical devices). Achieved businessgrowth in 8 years from R120m to R1bn sales. Part-time lecturer at the University of Stellenbosch Business School on International Management and Independent Board member at Alpha Pharm East Cape Holdings.

Ascendis Health

“The first area of importance when it comes to our future is to remain focused on our core fundamentals” potential in the form of either new products or new markets. So we are very much looking forward to moving these businesses forward.” While 2014 has already brought with it two new additions to the Ascendis Health family the company is well aware that there are many more opportunities ahead of it and in order to continue taking the business forward, Wellner and his team are embarking on a strategy targeting three particular areas. “The first area of importance when it comes to our future is to remain focused on our core fundamentals, so to continue doing what we do so well and that is taking our already strong brands and growing them accordingly,” he concludes. “The second thing we have to do is internationalise our business more in order to avoid foreign exchange fluctuations and create a better hedged position for ourselves. To this end we are already in the process of setting up our first international acquisition projects in Europe. Lastly we need to continue to grow ourselves, both organically and acquisitively.” Wellner’s mind then turns to one last shortterm goal for the company and that is to deliver on the promises made to its investors. “Over the course of the last year or so we have made promises regarding certain sales and profit targets and acquisitions, and I am pleased to say that we are more than on target to keep these promises, something which we confirmed to the market in our just released six months maiden result. A key focus for

Solal Stress Damage Control

the remainder of the financial year will be to continue delivering strong organic growth, integrating recent acquisitions and continuing to extract synergies both within and across all operating divisions.” Wellner concludes; “We are firmly on track and confident that we are going to exceed our committed full year pre-listing earnings forecast for the 2014 financial year.”

Ascendis Health

 +27 11 036 9400  info@ascendis.co.za @AscendisHealth www.ascendis.co.za

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CON

Tailor mad

Managing Director, Michel Maalouf d and a drive to deliver results have co words by

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Will Daynes

research b

NCIEL

de success

discusses how a passion for creativity ontributed to the success of CONCIEL

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ounded in 2005, its focus being to provide clients with management consulting and IT solutions, CONCIEL has expanded over the subsequent years to become a business tasked with solving its customers’ mission-critical problems through the innovative application of technology and expertise. Driven forward by a team of people, who together are empowered to go the extra mile for its clients by delivering outstanding value and productivity, CONCIEL has always believed that its success has been built upon the fact that it creates fundamental and tangible results in all of its competence areas, as opposed to quick fixes. “The last year has been one of exponential growth for the company as we have expanded into new areas of business and new countries,” explains Managing Director, Michel Maalouf. The expansion that he speaks of has seen CONCIEL spread its wings in recent years into telecommunication services and more recently data centres. “Up until 2013, I was working for another business in parallel to CONCIEL which specialised in the telecommunications side of the business. Since that company was sold we have brought all of core services, both old and new, under one umbrella, that being CONCIEL.” The work that CONCIEL in its new,

“The last year has been one of exponential growth for the company as we have expanded into new areas of business and new countries”

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CONCIEL

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consolidated form carries out can be broadly separated into two categories, one being solutions and the other services. “The products and solutions that we sell and implement for our clients themselves fall under three headings, software, data centres and telecommunications,” Maalouf continues. “Particular software products that we see continue to see strong demand for include Electronic Document Management Systems (EDMS), Computerised Maintenance Management Systems (CMMS) and Risk Business Inspection (RBI) tools. However,

as some will know, software on its own is of little or no use without data, which is why we work to provide a full turnkey service that encompasses all of our solutions.” Turning to the types of service CONCIEL is able to provide, these fall into the categories of consulting, training and engineering. “Our consulting services are primarily targeted towards management consulting and are often tied to a client’s desire to attain certain certifications, typically ISO:9001,” Maalouf explains. “From a training perspective our efforts tend to centre on management

“We have at our disposal vast experience and a range of services and solutions, and we want to be able to offer them remotely to anyone who wants them”

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and IT support, while our out its expertise and its ability Did you know? engineering services are very to provide a one-stop-shop for much focused towards the their needs. In addition to those telecommunications and data from the telecommunications 2005 centre aspects of our business. sector CONCIEL also lists The year that When it comes to the latter we clients from the oil and gas, CONCIEL was are able to design data centres facility management, food founded from the ground up, from the and beverage, manufacturing, building of the structure to logistics and water industries. the installation of electronic A diverse mix indeed, but and electrical requirements, through the they all share the fact that they identify supply of relevant products and equipment CONCIEL as the best provider for their needs. and their implementation. It is essentially a “I would say our greatest strength is that we case of starting with a blank sheet of paper believe in creativity and that we never look to and an idea, and ending with a tailor made impose an idea or a particular product upon solution.” a client,” Maalouf enthuses. “If a particular Across the markets that CONCIEL operates solution doesn’t fit the specification of the in, which today include Nigeria, Sierra Leone, client we will work to find one that does. It all Ghana and the Congo, a number of clients comes back to delivering tailored solutions from a variety of different industries seek that are individually relevant to each client.

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“The other thing we want to improve upon is the way we utilise remote application tools, so things like cloud technology”

We are not the type of business looking to sell the same product to hundreds of clients; rather we are driven by the desire to sell them exactly what they need, which in turn provides them with the best end result.” This is an exciting time for CONCIEL, one that sees the company continue to build on the growth experience in 2013. In doing so it has brought to market several new solutions and services that the market has begun demanding. The first of these comes in the form of hosted application outsourcing. “This is where we actually outsource a particular application and instead of the client having to then support that by setting up the servers and infrastructure needed to house the application we offer to host it ourselves on our own servers, providing access to the client in question,” Maalouf says. “The first thing this means is that months do not have to be spent implementing a top to bottom solution for certain clients, rather what we can implement the application remotely. It also means that the support service we provide can be delivered faster as our team can gain immediate access to the server in question. So any client, based anywhere in the world, is able to gain easy access to our solutions without us having to travel miles to set them up.” Another area of excitement for Maalouf and his staff has been the introduction of the company’s Data Centre Information Management (DCIM) solution. “In the last decade the concept of data centres has picked up considerable steam and as such there is an increasing demand for related

software and solutions,” he says. “What we have developed here is a solution that is very new for the industry and is a one that we look forward to being able to provide as an added value offering to both our existing and new data centre clients.” For the time being Maalouf has a clear strategy that he intends to follow through with in the months ahead, one which revolves around continuing to service CONCIEL’s existing clientele, while at the same time seeking out potential new customers. “The other thing we want to improve upon is the way we utilise remote application tools, so things like cloud technology,” he concludes. “I want to get our business to the point where even management consulting is something we can provide remotely. This would allow us to provide a more efficient and less time consuming service to our clients. We have at our disposal vast experience and a range of services and solutions, and we want to be able to offer them remotely to anyone who wants them. This is something that is all the more vital considering our own location, that of our clients and of course their ever-evolving needs.”

CONCIEL

+337 8248 8844 info@conciel.com @CONCIELT www.conciel.com

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Neo

Providing coverage

By applying fresh thinking, a creative approach and flexible so to the point where it stands among the top-tier telecommun words by

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Will Daynes

research by

otel

e and connectivity

olutions for communications in South Africa, Neotel has risen nications businesses on the continent, let alone the country David Brogan & Robert Hodgson BE Africa [ Issue 10 ]

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Neotel has carved a place as a major force in South African telecommunications

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y offering voice, data and internet services over a single connection, Neotel has established itself as South Africa’s first converged telecommunications network operator. Founded in 2006 and backed up by the financial and technical clout of global communications company Tata Communications, Neotel has since become a major force within the country’s telecommunications sector. During its first four years in business, Neotel laid the foundations for its future success by investing some R4.5 billion in infrastructure alone, rolling out a new fibre optic communications backbone nationwide. This included higher density installation in the metropolitan areas amounting to some 5,000 kilometres of cable,

that have become epicentres for local and international business. As well as offering effective solutions that are suited to large, medium and small businesses in order to handle individual telecommunications needs, Neotel is also dedicated to providing cost-effective telephone and voice solutions. The company’s reliable data solutions are designed to provide businesses a competitive advantage thanks to a combination of high-speed performance, flexibility and cost efficiency, while its secure and competitive hosting provides customers with the most cost-effective solution to their IT infrastructure investment. Neotel is also the only Tier 1 operator in South Africa with a global reach. Through its

“Neotel laid the foundations for its future success by investing some R4.5 billion in infrastructure alone, rolling out a new fibre optic communications backbone nationwide” and delivering fibre communication to the kerbside for large corporate customers. Much of the Neotel service is internet based, and not only includes ISP services and managed global and local VPN services for corporate customers, but the company also introduced the first Metro Ethernet in South Africa. Today the company covers all major metropolitan areas of South Africa, in which it caters for wholesale, business and home customer needs, delivering services that reduce the cost of doing business through the optimising of advanced technologies. Neotel provides a range of value-added voice, data and internet services in order to support its diverse clientèle , be it home customers using telephone handsets to the major data centres

major shareholder, Tata Communications, it has managed to bring faster, more reliable internet to numerous areas of the country. As the leading converged South African fixed line telecoms operator, Neotel’s Carrier Services offers connectivity to the global internet backbone through its world class fibre optic network and expertise. With a network spanning 200 countries on six continents, its Carrier Services solutions combine next generation SDH, IP and ethernet capability, global reach with active local presence and support, ideally suited to mobile service providers, fixed line operators and internet service providers. Additional services offered by the company include Virtual Private Networks,

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“Neotel’s greatest strength is reflected in its shareholding”

hosting and satellite services, while its various telecommunications licences, electronic communication network service licence and electronic communication network licence, allow it to provide a complete range of telecommunications services. Arguably, Neotel’s greatest strength is reflected in its shareholding, which embodies vast global as well as local telecoms experience, giving the company greater impetus to achieve its objectives. The company’s strategic equity partner, the Tata Group of

Neotel’s focus is on developing the customer base

t-systems T-Systems in South Africa – transforming business through innvoation As markets become increasingly tough, and IT products and services become commoditised, it is essential for companies to increase business optimisation through better efficiencies, processes and innovative technology. T-Systems in South Africa is meeting this requirement head on by creating new ways of optimising business, driven by its passion for excellence, transformation and innovation. T-Systems increases business optimisation through better efficiencies, processes and innovative technology such as apps. However, behind these benefits, T-Systems is driving zero distance between businesses and their customers, fostering a closer relationship, better service delivery and competitive advantage. A new landscape is emerging for business and in order to remain competitive they need to transform their business through disruptive technology including: • Cloud • Big data

• Social media • Mobility

• Security

This technology allows business to operate not only more efficiently but also to reduce costs. With around ten years of cloud experience, and the backup and support of its Germany-based parent company, T-Systems enables companies to make this transformation possible. It is not only through its innovative mind set, technology, skills and experience but also the company’s forward-thinking vision that guide’s its customers on the way to a digital future. One such example is the transformation of the IT of Africa’s biggest glass producer Consol. The project with T-Systems in South Africa provides a showcase on how digitising a traditional company supports its growth targets. Consol doubled its volume of glass production in just four years yet achieves a 16 % savings in IT costs in the first year. www.t-systems.co.za

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â&#x20AC;&#x153;Today the company is involved in a number of improvement projects designed to increase its cyber, wireless and IP capacityâ&#x20AC;? India (through VSNL and Tata Africa Holdings Pty), brings immense expertise derived from its worldwide telecommunications operations. This partnership gives Neotel access to international best practice and the latest technical innovations. Furthermore, Nexus Connexion, its Black Economic Empowerment (BEE) equity partner,

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has a broad based constituency which includes women and youth groups, while developmental NGOs, labour unions and businesses are represented by individuals and corporates. One private consortium in particular, Communitel, brings additional international and African experience through their various shareholders, including TelecomNamibia.

Neotel

Neotel has laid over 5,000 kilometres of cable

Today the company is involved in a number of improvement projects designed to increase its cyber, wireless and IP capacity. This work includes the ongoing construction of three massive data centres and the installation of more than 5,000 kilometres of cables. Connected to the South Africa Far East (SAFE) cable, Neotel also boasts a landing station on the SEACOM cable system project. The company is also a member of the Eastern Africa Submarine Cable System (EASSy) consortium and has invested some R80 million into the project to date, which is expected to go live in August 2014. The addition of EASSy will significantly boost international bandwidth capacity and redundancy, and increase Internet connectivity competition in South Africa.

In the last several months Neotel has successfully expanded its retail footprint by opening its second store at the N1 City Mall in Cape Town. It represents just the latest development for company that is pushing hard to reach R3 billion in revenue this year alone as more companies secure confidence in Neotelâ&#x20AC;&#x2122;s industry leading services.

Neotel

+27 11 585 0000 Neo.moabelo@neotel.co.za @NeotelSA www.neotel.co.za

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ITâ&#x20AC;&#x2122;S TIME TO FOCUS ON YOU

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