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BUSINESS EXCELLENCE Nov 2014 | www.bus-ex.com

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South Boulder Mines

Potash for

produce The Colluli Project is a unique potash resource that will help feed the world


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contents

8 leadership

How to handle conflict in the workplace

We offer some tips on how business owners can manage conflict in the workplace and encourage a happy working environment.

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leadership

Tesco: â&#x20AC;&#x2DC;Group Thinkâ&#x20AC;&#x2122; and Leadership

Who counted the beans? Who spilt the beans? Stephen Archer gives us his insight into the fall from grace of one of the worlds largest supermarket chains.

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human resorces

A culture of engagement

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Talent retention and engagement, remain on-going human capital issues - short term goals will always be with us but HR strategy needs a broader vision.

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Strategy

Making the most out of networking

Understanding why youâ&#x20AC;&#x2122;re networking and how to maximise any potential contacts you make is vital to help a business grow.

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technology

Beyond the page

Introducing the next generation of interactivity for business communications.

26 Executive insight

Solomon Dube

Director General of the Swaziland Civil Aviation Authority (SWACAA).

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contents

Business of the month

30 South Boulder Mines

Potash for produce The Colluli Project, an equal joint venture between South Boulder Mines and the Eritrean National Mining Company (ENAMCO) is a unique potash resource that will help feed the world.

mining & minerals

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Hawk Measurement Systems (HAWK)

HAWKâ&#x20AC;&#x2122;s eye view Hawk Measurement Systems (HAWK) is regarded as a world leader in the design, manufacture and provision of level, positioning and flow measurement systems, with exports to over 30 countries across a range of industries, including mining, water, food, power stations and cement.

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Kishugu

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VC Bird International Airport

oil & gas

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Intertek

Testing times Intertek, a leading quality solutions provider to industries worldwide, is providing essential quality, safety, compliance and performance monitoring as part of the growing range of services it offers to clients in Africa.

Oando Gas and Power

Networking Nigeria With a long history of service Oando Gas and Power Limited (OG&P) has emerged as Nigeriaâ&#x20AC;&#x2122;s leading private sector developer of gas to both commercial and private consumers.

Battling for the greater good Kishugu, which has its roots in forest and wildfire combating, suppression and prevention, is set to light up the global stage with its international experience of delivering integrated fire management services.

Destination the idyllic isles Antigua and Barbuda is a top 20 destination, favoured by the wealthy: its economy was hit by the recession but tourists are now returning, and China. which is helping it build a new terminal at VC Bird International Airport, may provide a major new source of Caribbean sun seekers.

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Transport & Logistics

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SWACAA

A royal start to a new aviation era The opening of King Mswati III International Airport was the proudest moment to date for the Swaziland Civil Aviation Authority.

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How to conflict workp

We offer some tips on can manage conflict i encourage a happy w Words by

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Mariele


handle t in the place

how business owners in the workplace and working environment

ena Sabatier

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eople spend a large part of their lives at work and conflict between people and teams can have a serious impact on how they feel about their work and their motivation. Conflict can impact staff retention and result in talented people leaving organisations because they just can’t put up with it any longer. But what can managers and business owners do to better manage conflict in the workplace? The first thing they need to do is to take a step back and take an honest assessment of how the situation has escalated and then commit to improving it. Remember the saying “it takes two to tango” - any conflict, whether between the boss and a colleague or two colleagues will always have two sides. It’s worth all parties taking a step back and examining what went wrong, and for both parties to take ownership of their contribution to the conflict. How did the problem start? What is the root causes of the issues? Were there any signs the relationship was turning sour that were missed? With careful evaluation often comes the ‘realisation’ and the understanding from people that perhaps they have

“At the heart of most problems and misunderstandings at work is poor communication”

both contributed to the situation. On a more positive note, it can also lead to the knowledge that the damage may not be irreversible. At the heart of most problems and misunderstandings at work is poor communication. Take, for example, the employee who decided not to overload his manager’s inbox by only copying his boss on emails when he needed to escalate a situation. The problem here was that the manager only every received negative communications. Whilst the boss was only updated on around 5 percent of problems, all the communication was negative, which made him doubt his employee’s ability and competence. Communication from staff must be balanced if they are to get a fair representation. One way of avoiding conflict and to stop resentment building at work is for managers to encourage open and honest communication that is not confrontational, but encourages trust and safety. If a manager behaves in a way that another person finds unacceptable, it is not acceptable to talk behind their back, or ignore the issue, the employee needs assume responsibility to give constructive feedback to help the relationship and establish boundaries. Equally, if an employee has made a mistake, they need to admit it and apologise – honest communication from both parties is an essential component


Leadership

of a good working relationship between a boss and an employee. An apology will go a long way to rebuild trust. Here are some other tips to that everyone in the workplace should take on board to help avoid conflict and create harmonious teams: Building rapport Building rapport with someone helps people get along and potentially deflect conflict. A useful tool to achieve this is mirroring - gently copying a person’s body language and speech in order to build rapport and trust. Mirroring techniques can be used in the workplace to make people more receptive, willing to listen and to be persuaded. Think before you act People need to assess a situation’s potential outcomes before taking action. This involves asking the question how they would feel if they were in the other person’s shoes. Looking at the situation from another’s perspective can allow language or behaviour to be modified to avoid potential conflict.   Define intentions and expectations One of the main reasons that conflict occurs in the workplace is that people assume they understand the intentions of others, but in reality, they don’t.. It is all too common and a mistake for people to assume that others have ill intentions. They need to instead to consider what they really might be. Another common problem is when expectations from managers or colleagues are developed without being communicated clearly.  To avoid potential conflict it is important they clearly communicate their intentions and what each person expects of the other.

Admit mistakes and right wrongs and go the extra mile Often people are afraid of admitting mistakes because they don’t trust others to treat them fairly. However, people need to take responsibility for their failure and not blame others or circumstances. Taking responsibility ensures people can learn from the mistakes, and take appropriate action to remedy. Action to remedy the situation is critical to ensure the apology is not seen as empty words. People often apologise, and do nothing more. If they make a mistake and apologise then they need to follow through, correct the previous situation and demonstrate they will change. Apologies mean nothing if the same mistakes continue to be made.   Constructive feedback Managers also need to take time to provide feedback and to ask for feedback, this should be done calmly and constructively without engaging defensive emotions.   Know when to call a time out If a conversation is deteriorating, take a break then re-group to finish the conversation once emotions have calmed down. As quoted before, ‘it takes two to tango’, however, if people are prepared to acknowledge that they have contributed to the conflict in some way, and take responsibility for that contribution they will be half way towards creating a harmonious working relationship with their boss and colleagues.

About the author

Marielena Sabatier Executive Coach and CEO of Inspiring Potential works with businesses and executives to develop and boost their confidence to improve their performance at work. www.inspiring-potential.com

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esco this year has seen its share price fall by 25% and eight directors have been suspended following the over reporting of profits by £250m. The Financial Conduct Authority is looking into the matter and now even the Serious Fraud office has expressed an interest in the situation. All this is on top of the premature exit of the previous CEO. How can a business the scale of Tesco and operating under close financial and investor scrutiny get itself into such a mess? How did PwC, its auditors not spot and act upon the risk of flaws in accounting? What were the non-executive directors doing? If an organisation this size can do this then what hope every other organisation? Or is it because of the size that they got it wrong? No, I rather believe that the flaws are to be found in leadership and perhaps a large part of the culture of an organisation. Tesco has been notable for a very aggressive approach to most aspects of business. Be it expansion, discounts, market share, land banks or cost pressure on suppliers; Tesco has been a force to be reckoned with and the former CEO Terry Leahy seemed to preside over unstoppable commercial growth during his tenure 1997 to 2011. But almost as soon as he retired the performance dipped. The pressure and expectation placed upon a FTSE company such as Tesco is enormous. If

“How can a business the scale of Tesco and operating under close financial and investor scrutiny get itself into such a mess?” excessive creative accounting had ever been used then the temptation would have been there to continue doing so. But if the business’ performance trend looked to be continually downward then ‘creative accounting’ will be caught up with in time. Financial lies cannot be sustained in a downturn. This is perhaps why there was a whistleblower within Tesco, that person knew that a) the message to the outside was misleading and that b) it was going to come out in the open at some later date when the issue would be far worse. The admission by Tesco that there was a whistle blower clearly indicates that this person was acting counter to accepted behaviour by at least some of the senior management. How can such incorrect behaviour be sustained? Often this is done through obfuscation, bullying and even blackmail. This alone may lead to acquiesce of poor or even illegal practices. Sometimes its is just laziness that leads to poor practice going unchallenged or worse still ‘not wanting to rock the boat’. This brings us to Group Think, the state where a team gets into when acquiescence, lack of inquisitiveness, fuzzy thinking, poor communication, bullying and habitual ‘blind eye’ turning become the norm. The Challenger disaster of 1985 was found to have been caused at least in part by this. Senior team members can have an illusion


Leadership

of invulnerability, accompanied with hubris and over optimism. This can extend to a misplaced sense of morality leading to integrity being left behind. Team members collectively and individually rationalise warning signs to fit their pre-conception or desired state of affairs. People develop clichéd and unsupported negative views on ‘naysayers’ to the extent that they can become the evil opposition and as such not worth discussing issues with. Counter arguments are habitually diminished. Sometimes consciously, sometimes sub-consciously. Disastrously, team members can censor themselves from deviations from accepted wisdoms. How can leaders and indeed the current Tesco CEO prevent such things happening? Functional leaders traditionally mind their own functions and do not over challenge other senior leaders. The ‘stones and glasshouses’ ethos come into play here. However, the CEO must give the team free rein to evaluate, question and even criticise the thinking of other board members. The CEO must not ‘lead’ board members excessively with their own opinions on other’s roles in completing a task. The habit of ‘leading thinking’ leads to abdication of responsibility on the part of the board member. ‘It was OK, the CEO said as much…’. CEOs must not micro manage and must not interfere or even participate in the tasks and team meetings of board members. Micro management undermines, weakens functional authority and crucially erodes the credibility of any counter arguments from the board member. Critical tasks are often best set amongst more than one team. Not to compete but to act as a ‘check and balance’ and reduce group think.

“Being part of a group even if guilty of groupthink gives a warm feeling and speaks to human nature” All options should be openly and objectively placed on the table and assessed. Board members with an independent standing should be appointed as guardians of this principle. Decisions and principles should be discussed judiciously with senor people outside the board. This helps prevent assumptions and out of date views coming into play. Sometime external, totally independent expertise should be brought in to assess options and decisionmaking. Finally, whilst every board member must be prepared to be devil’s advocate; at least one should be explicitly appointed with this role. Challenging thinking and integrity will usually win through to ensure that the CEO and the board stays within legal, safe and productive boundaries. Being part of a group even if guilty of groupthink gives a warm feeling and speaks to human nature. However, the less comfortable but constructively challenged team is a safe and in the end a better place to be.

About the author

Stephen Archer Business Analyst and director of UK business consultancy, Spring Partnerships. www.springpartnerships.com

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A culture of e

Talent retention and engagem capital issues - short term us but HR strategy n Words by

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Human Resources

engagement

ment remain on-going human m goals will always be with needs a broader vision

garet Kett

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alent retention and engagement, as Deloitte’s 2014 Global Human Capital Trends survey recently confirmed, remain on-going human capital issues. According to Deloitte’s  survey, 79 percent of business and HR leaders worldwide still believe retention and engagement are key issues they need to address.  That raises the question: Should we be approaching this challenge in a new way? Certainly the HR landscape is shifting very rapidly, requiring a new mindset and new approaches. HR directors are taking on a far more strategic role as they move away from the transactional emphasis which their position once required. As the need  increases  for their departments to become profit centres in their own right, we are seeing a new breed of HR Director (HRD) emerging: one who has to have a greater overall understanding of the organisation coupled with a transformative leadership style and a visionary attitude. The corporate playing field they are managing is rife with new challenges. An emphasis on short-term goals can make it difficult for an HR Director to effectively structure long-term plans to create engagement and motivation. Rather than addressing this conflict head on could HRDs benefit from taking a leaner approach? As it turns out the new generation of employees tends to operate best in a more flexible and results-oriented context. This flexibility could be anything from working remotely to working unusual hours, something

“Empowering the workforce is now something that the HRD needs to take to a whole new level”

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Human Resources

which more traditional HRDs may initially struggle to weave into the overall corporate structure. Yet, if we take away the need for ‘presenteeism’ and centre instead on results, motivation generally follows. Empowering the workforce is now something that the HRD needs to take to a whole new level. Whilst historically HR has always played a reactive role – shifting from the dispenser of tissues and tea when they were head of personnel to defenders of employee relations – this new breed of HRD focuses on taking good people and making them better, ensuring the cultural fit is diverse. At the same time, they need to be dynamic, stretching their reach from graduate intake all the way up to the boardroom. Their role has now become transformational and crucial to an organisation’s growth. Implementing game changing strategies which deliver sustainable engagement and, therefore, employee retention, means stepping into this new role and driving change rather than following it. By creating a company with clear purpose and values, employees are able (and willing) to connect themselves to a much bigger picture which, in turn, increases productivity. Developing and maintaining a culture of engagement leads to greater employee loyalty and better financial returns. The fact that corporate goals, particularly financial, tend to be short-term based should not prevent the HRD from creating a strategic plan that addresses the short term, but has a succinctly long-term vision built into it.

About the author

Margaret Kett Margaret leads Tyzack’s Human Resources practice crossing all industry sectors and all areas of Human Resources. www.tyzackpartners.com

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Making the most out of networking Words by

Chris Meredith


strategy

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alking into a crowded networking event where you recognise no one can daunt even the most sociable business professionals. Understanding why you’re networking and how to maximise any potential contacts you make is vital to help a business grow. Here CEO of OfficeBroker.com Chris Meredith gives his top tips on overcoming networking event fears, and getting the most out of them for your business. 1. Understand why it’s important One of the main reasons many professionals don’t network successfully is that they don’t see the benefits it can provide for their business.

“It might sound simple, but by making a small effort to prepare yourself for the day, you are likely to feel a lot more relaxed”

Networking is the perfect opportunity for you to grow your social circle, find potential business partners, or even find a new job, so these events can be incredibly beneficial. Make sure you go with a positive attitude to help make a good impression. 2. Be prepared A massive part of successful networking is making sure you are prepared. It might sound simple, but by making a small effort to prepare yourself for the day, you are likely to feel a lot more relaxed. Make sure you have enough business cards and have researched where you’re going to reduce stress before you get there. You’ll make the best impression by being prepared.

3. Dress the part The way you dress says more about your personality than you realise, so when you know you’re going to meet lots of new people, make a conscious effort to look presentable. You should also make sure you’re comfortable in the outfit you’ve chosen. Wearing shoes that are too small or something you feel on show in will only add to your anxiety on the day. 4. Have a plan Before you go to an event it is important to decide what you hope to gain from it. Do some research ahead of the event so you know if it’s likely to yield the types of contact you’re hoping to make. Give yourself a goal of how many contacts you want to make and make sure that you pay attention to the different people you’re talking to, as you may need to use this information when making contact again. 5. Follow up after the event Once you’ve come away from the networking event don’t waste time about. Make sure you make the effort to contact all the people you’ve met within 24 hours. Don’t just send out a generic email, but personalise it discussing how you can work together, or let them know you took an interest in them by wishing them luck on their upcoming big project.

About the author

Chris Meredith Chris is the CEO of officebroker.com, the UK’s leading brokerage of serviced office space. Chris joined the company in 2004 on the sales floor. He was promoted to Head of UK Sales in 2009 and in 2013 was promoted again to CEO. www.officebroker.com

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Beyond t

Ricoh introduce the interactivity for busin Words by

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e next generation of ness communications

it Chatelard

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he word ‘digital’ has become synonymous with new business strategies that enhance communications and customer engagement. From smart mobile devices, to social media channels and an internet connection, the masses are always-on and always connected. Within this digital expansion, it’s been reported that 19 percent of the world’s internet users are from Europe, despite Europeans representing only 11 percent of the total world population. With mobile internet use representing an increasing share of European internet activity, mobile advertising, has become one of the most popular gateways for businesses to have an anytime, anywhere relationship with their customers, and has slowly grown into a key strategy for businesses. According to a Gartner report, “Global mobile advertising spending will reach $41.9 billion in 2017, more than quadruple the total in 2012.” Gartner also states in the report, “Growth from 2015 to 2017 will be fuelled by improved market conditions, such as provider consolidation, measurement standardisation and new targeting technologies, along with a sustained interest in the mobile medium from advertisers.” While businesses undoubtedly realise the need to embrace digital and mobile strategies and connect with customers on a mobile-level, there remains strong latent potential to further optimise mobile activity with people, brands and overall customer experience.

To establish a more engaging connection, businesses must now look beyond a ‘push’ approach and increasingly create more interactive twoway conversations with consumers. One of the original technologies designed to achieve this – the QR code – quickly gained traction for its ability to easily take the printed word to an online destination via a smartphone. However it does have limitations and even the creator of the technology admitted recently that the QR code has around a decade left before it falls out of use. So where does this leave businesses seeking to interact with their customers better using print, mobile and online communications? Enter Clickable Paper by Ricoh, an interactive technology that bridges online and offline worlds, via images and text. Based on Ricoh’s visual search technology, Clickable Paper goes one step beyond traditional ‘scan-and-seemore’ concepts and technologies. Users are able to engage with brands, products and services by snapping real-world images – from posters, billboards, product packaging, display ads and many other physical mediums – with their mobile devices, to access as many as six links, including websites, videos, social media sites and gain more information and requests to take an action, in an instant. This new experience of ‘see it, snap it, buy it’ will also offer quicker interaction with brands and products, and a highly engaging purchasing experience. The technology also has the potential to

“Since Clickable Paper is managed entirely in the cloud, there are no limitations on what can be delivered to selected audiences”

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differentiate brands’ product and service offerings, whilst giving them valuable big data capture potential, so that they can tailor offerings to better suit their customers’ needs. It could also revive revenue streams in the publishing sector, with advertisers seeing returns on print becoming more viable, as it now offers a more interactive and integrated connection to a brand’s online presence. It also opens up new applications within the sector by enabling functionality such as augmented reality or automatic translation to enhance the paper experience. There is also evidence of its value as a new business communications channel in its own right, within these and many other industries. Since Clickable Paper is managed entirely in the cloud, there are no limitations on what can be delivered to selected audiences, so potential applications could include: • Books and magazines offering a more innovative and differentiated reader experience • Retail catalogues linking to the full online shopping experience • Direct Marketing materials bridging with social channels • Outdoor advertising offering a full digital experience • Retailers enhancing POS (point of sale) capabilities • Corporations using it to increase internal productivity and output • Retail banks supplementing the customer experience within the ‘branch of the future’ UK commercial printer Barnwell Print was one of the first of our clients to pilot the technology with a view to applying some of these capabilities. The company was keen to modernise the user experience with the printed page and increase the

value of print to enhance its breadth of services and support its clients to grow their own businesses. It incorporated the technology into a 4,000 run of a 274-page book, enabling readers to watch a video about fishing. Barnwell Print also used the technology successfully in an advert for Norwich Theatre Royal in a monthly town magazine with a circulation of 40,000 to encourage readers to order theatre tickets online. Since pilots like these the capabilities have grown rapidly, but Clickable Paper is just the beginning. We may see a future where snapping surrounding objects or even buildings leads to a wealth of digital information, digestible tips or even ‘clickto-buy’ options, for example. If applications like these become possible in the near future they could play a key role in bolstering global mobile advertising spending growth to the levels that Gartner predicts. The technology is already commercially available, barriers to entry are surprisingly limited and it is easy and quick to implement on a pay-as-you-go subscription model basis – offering a great opportunity for a new era of interactive business communications that’s open to all.

About the author

Benoit Chatelard Benoit is the General Manager for Ricoh Europe’s Production Printing software solutions and a part of the Production Printing Group, EMEA. He has been involved in the commercial printing industry for more than a decade in roles based around the world and is passionate about raising awareness of new approaches to business communications that bring mutual benefit for both business and the consumer. www.ricohclickablepaper.com

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Solomon Dube Director General of the Swaziland Civil Aviation Authority (SWACAA)


Executive insight

What motivated you to choose engineering as a career?

great influence upon me, with their selfless service to my country in the education sector.

I completed my studies at the Salesian High School, Manzini, in 1973 where I studied metalwork and woodwork and thereby developed a love for creating things. In 1975 I was called before the Chairman of the Scholarship Selection Board, Prince Khanyakwezwe Dlamini, who told me I was being offered a scholarship to become one of the engineers for the Mpaka Airport. I had no idea at the time what he was talking about; I just wanted to become an engineer! My tertiary studies were in electrical and electronics engineering. On return from my initial studies in Canada in 1977, I joined the Government Ministry of Public Works in order to serve my country.

What do you count as your greatest personal asset, and what quality or ability do you wish you had?

Specifically, what attracted you to aviation â&#x20AC;&#x201C; how do you view the industry?

What mistakes are you aware of having made, and what did you learn from them?

After completing a Post Graduate Diploma in the same field, this time at Cranfield Institute of Technology in the UK in 1984, I returned to Swaziland and was assigned by Government to join the engineering department at Matsapha Airport. This was my first contact with aviation.

In top management I have found that the major mistakes emanate from having to juggle different important stakeholder needs in the fulfilment of my mandate. These include, I have found, good governance from a Board of Directors point of view, political expectations and international requirements.

What person or persons influenced you and inspired you?

Which one piece of wisdom would you pass on to your successor?

The priests at Salesian School where I did all my primary and secondary schooling were a

Work smart, with dedication to doing the right things in the right way.

Honest love for service is what I would consider as my greatest personal asset. It would also have been nice to have the ability to generate wealth simply because this would help me to serve humanity even better.

Of which achievement in your business life are you proudest? Starting SWACAA from scratch and sustaining it up to the present time is something that gives me profound satisfaction.

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“Don’t leave until tomorrow what needs to be done today”

Do you have a motto, or principle, that you live (or work) by? Don’t leave until tomorrow what needs to be done today.

What single social, economic or political change would you like to see happen globally? I would love to see the day when the world’s wealth is shared among by all citizens of the world.

What are the best things about Swaziland? Too many to enumerate! But if I have to pick, I would say its small size, making it a peaceful, homogeneous country.

How would you like to be remembered after your retirement? I feel blessed and honoured to be part of the unfolding history of air transportation in the Kingdom of Swaziland. I would like to be remembered as someone who made previously unconceived of things possible in the development of the aviation sector in Swaziland.

Learn more about Swaziland Civil Aviation Authority www.swacaa.co.sz

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Potash for produce South Boulder Mines The Colluli Project, an equal joint venture between South Boulder Mines and the Eritrean National Mining Company (ENAMCO) is a unique potash resource that will help feed the world

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South Boulder Mines

here’s no arguing with the fundamentals. Growing populations, reduction in arable land, changing dietary preferences, climate change and the escalating demands of emerging economies have placed food security at the top of the political as well as the economic agenda. World population is growing by some 75 million every year. By 2050 almost 9.3 billion people are expected to inhabit the earth. Food production will have to increase by almost 50 percent to feed them, and this means a huge global demand for fertilisers, already forecast to reach 190 million tonnes by 2016. The market for potassium fertilisers, or potash, is currently around 60 million tonnes. Demand is forecast to grow at

T

Colluli is an extensive, 400 square kilometre resource. Drilling that started in 2010 has established that it contains more than a billion tonnes of potassium bearing salts. Subsequent to this, the company set about disposing of its other assets, spinning out the gold and nickel tenements into a separate company, Duketon Mining, and putting all its efforts into developing Colluli. South Boulder’s present CEO Paul Donaldson, a vastly experienced mining professional with more than 20 years’ experience at BHP Billiton, who had joined as Chief Operating Officer, had been attracted by the market potential for potash and the ideal location of Colluli to supply the product to key markets in Australasia, India and southern Europe as well as the sheer size

“The Colluli resource is the shallowest known potash deposit in the world: mineralisation starts at 16 metres and it runs down to about 140 metres so it is perfect for open cut mining” approaching five percent per annum, much faster than nitrogen and phosphorus based fertilisers. It was this fact that attracted the attention of South Boulder Mines’ founder and Australian entrepreneur Liam Cornelius. The ASX listed company he founded in 2003 had gold and nickel exploration interests, and in 2007 it acquired some tenements in the Pilbara region of Western Australia to gain an initial foothold in the potash market. Its focus on potash, however, was sharpened in 2009 when, following careful research into the characteristics of the Danakil Depression that straddles Ethiopia and Eritrea, it was granted exploration tenements for the Colluli concession in southern Eritrea.

of the resource, “The Colluli resource is the shallowest known potash deposit in the world: mineralisation starts at 16 metres and it runs down to about 140 metres so it is perfect for open cut mining which is much cheaper than developing an underground mine. Open cut mining also gives very high resource recovery relative to underground and solution mining methods used for potash mining.” However he felt the original plan did not take full advantage of the way the deposit is composed. “The strategy had been to build a flotation circuit, bring the top level sylvinite into production of potassium chloride and then deal with the ancillary polysulphate, carnallite and kainite resources at a later point,” he explains. “The problem with that

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A sealed drill collar at the Colluli site

approach was that top salt is only 16 percent of the resource. With a resource covering such a big land area, you could end up with very high mining costs. So the economics of the project did not look as attractive when potash prices declined back in early 2013.” At this point the company went through a restructuring from which Donaldson emerged as CEO from his Chief Operating Officer position, embarking on a new development path that involved full resource utilisation and at the same time shifting the production focus from potassium chloride to potassium sulphate. Though potassium chloride is in widespread demand, it is not suitable for every kind of crop. Potassium sulphate (referred to as Sulphate of Potash or SOP) is used in crops that are sensitive to chloride or fertiliser burn, like coffee, tobacco, pineapple, avocado and many other fruits, or where sulphur is deficient. “We found that the combination of salts that we had in the resource is highly favourable for the low cost production of potassium sulphate rather than potassium chloride,” he says. The bottom line is that potassium sulphate creates a premium potash fertiliser that sees a price premium in the market - and there are limited production centres globally. “We use a very simple liberation and flotation process, simply mixing the kainite with other salts: under ambient conditions you then get a conversion that takes it to potassium sulphate. We have validated this with our metallurgical test program.” This is something that cannot be done by most other producers, since it is rare to have the right combination of salts in a single resource - and where that does

“We found that the combination of salts that we had in the resource is highly favourable for the low cost production of potassium sulphate rather than potassium chloride”

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South Boulder Mines

Colluli exploration camp

happen the salts are usually held potassium chloride path was Did you know? abandoned in favour of the in brine, which contains about premium product, though it a tonne of water that has to be always has the option to make evaporated to obtain around five 16-140 metres the former in the future. Since kilogrammes of potassium. Depth of the one of the key differences of Because the resource is so Colluli resource the Colluli resource relative to shallow, it can all be dug out operations producing potassium and is immediately ready to 1 billion tonnes sulphate from brines, is that enter the flotation circuit. This Potassium the salts exist in solid form is another advantage Colluli has salts identified and therefore do not require over kainite resources that occur at Colluli evaporation to produce the feed deep underground. In those for the processing plant, this cases the only way to obtain it is substantially reduces the overall solution mining, however kainite footprint required, reduces land disturbance is difficult to dissolve and in these conditions and environmental impact, reduces the requires either heat or a long period of amount of double handling of raw materials, saturation. Kainite represents approximately and most importantly gives reliability of 60 percent of the Colluli resource with the product delivery, as production rates are not remaining salts consisting of sylvinite and significantly impacted by ambient conditions. carnallitite which are commonly used for the Salts from the Colluli resource will simply production of potassium chloride. be mined, stockpiled to the allocated areas On this basis Colluli embarked on a and fed directly to the processing plant. The completely new development path. The

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â&#x20AC;&#x153;The resource is 120 metres below sea level, and most of the process water is in fact seawater that we will pipe from the coast under gravityâ&#x20AC;? change in approach has allowed the company to scale back its development plan radically, from $800 million to the anticipated region of $350 million. The operational costs and procurement strategy is being further refined, he says, to bring capital and operating costs down to a fundable level that mitigates

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the risks of safety in an emerging mining jurisdiction and balances capital outlay against resource risks, he adds. The resource is 180 kilometres from the well-established port of Massawa, a town of around 30,000 inhabitants which has four working berths handling bulk and container


South Boulder Mines

The vast Colluli resource contains over 1 billion tonnes of potassium bearing salts

traffic. Massawa is connected to the country’s second port via a 500 kilometre coastal highway that runs south from Massawa to Assab the second port. The Red Sea is one of the world’s busiest shipping routes. Colluli’s planned ship loading facility at Anfile Bay provides deepwater access suitable for loading up to Panamax size vessels. Massawa port itself is Eritrea’s primary import-export facility and will form a key part of the consumables supply chain for the Colluli operation. The port currently exports over 250,000 tonnes of copper concentrate from existing mining operations. Massawa also represents the local recruitment pool for Colluli. Employees will be bussed to the site.

The resource itself is extremely flat and free of vegetation. Roads will be improved as the project progresses, says Donaldson. Generators are being used for the exploration work, however on-site power generation will have to be built for the plant construction and operational phases. Though it is an arid region, water should not be a problem, he believes. “The resource is 120 metres below sea level, and most of the process water is in fact seawater that we will pipe from the coast under gravity.” Fresh water for drinking and other purposes will probably require the installation of a solar desalination plant at the site, he adds.

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Paul Donaldson CEO & MD

Baseline environmental assessments are well underway

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Paul was appointed as CEO in February 2013 and joins South Boulder from a series of senior management roles spanning more than 20 years with BHP Billiton (â&#x20AC;&#x153;BHPâ&#x20AC;?). Mr Donaldson holds a Masters Degree in Business and Technology from the University of NSW, and a degree in Chemical Engineering from the University of Newcastle. Paul has extensive operational experience in management of large scale open cut mines, mining development projects, and supply chain management, which is complimented by commercial, marketing and strategic roles which have focussed on product quality, pricing, placement and integration with multisite supply chains.


South Boulder Mines

“We think these are marketable products because of our proximity to the coast and the low logistics cost of bringing them to market”

Apart from the potassium chloride potential already mentioned the resource contains 200 million tonnes of magnesium chloride and there are other by-products of the mine that could be sold. Chief among these is a large quantity of high quality rock salt and plenty of gypsum. “We think these are marketable products because of our proximity to the coast and the low logistics cost of bringing them to market.” The partnership with a government ministry does a lot to take the risk out of the project, as it ensures full cooperation with permitting, access to the port and highway authorities and the many other official agencies that are involved. That is a factor in getting Colluli products to world markets with as little delay as possible. A pre-feasibility study (PFS) was initiated in May 2014 for the production of potassium sulphate from the various potassium bearing salts in the resource, and this is expected to be completed in early 2015, with the final definitive feasibility study (DFS) completed in the second half of 2015. Environmental studies supporting the project are well advanced. Eight baseline assessments were submitted to the Eritrean Ministry of Energy and Mines in August of this year as part of a three stage submission process to ensure sufficient time is allowed to address any concerns - though none are anticipated. “As

The port of Massawa, Eritrea’s key import-export facility located 180kms from the Colluli site

soon as the PFS is finished we will start the process of obtaining funding and getting our mining licence established so we can get into production as fast as possible,” concludes Paul Donaldson. “As far as we are concerned, keeping up momentum on the upfront work is critical and as soon as the definitive study is finished we will commence the design engineering of the processing plant - probably towards the third quarter of 2015 - so that when we secure funding we can go into construction as fast as possible.”

South Boulder Mines

+618 6315 1409 info@southbouldermines.com.au www.southbouldermines.com.au

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HAWKâ&#x20AC;&#x2122;s eye view Hawk Measurement Systems (HAWK) Hawk Measurement Systems (HAWK) is regarded as a world leader in the design, manufacture and provision of level, positioning and flow measurement systems, with exports to over 30 countries across a range of industries, including mining, water, food, power stations and cement

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t’s not random chance that puts mining at the head of the list of industries – and it’s a long list – that HAWK serves. HAWK is an Australian company, founded in 1988 with a focus on serving that country’s resources sector with locally designed and produced products. Over the years the company has expanded into different geographic areas, mainly into countries with a mining presence, working through a network of specialised distributors. Today, with the export demand for level measurement growing because of the global mining boom and water crisis, HAWK is forging into emerging markets including China, India and South America. And HAWK has a growing presence in the North American market. Jack Evans, formerly President and CEO of German competitor Krohne’s USA subsidiary, founded his own company near Boston Massachusetts exclusively to distribute HAWK products to the North American market, something he did so effectively that two years ago HAWK’s CEO Les Richards bought the company. Evans is still CEO of that operation, combining the job with that of director of global operations for HAWK from the company’s headquarters in Melbourne. He puts the company’s success down to the level of support it gives its customers. “For me that is the critical thing. Of course HAWK is the global leader in having exceptional and

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“For me support is the critical thing … Hawk is the global leader in having exceptional and innovative products but that alone wouldn’t be a sufficient basis for growth”

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Process control solutions for mining


Hawk Measurement Systems (HAWK)

“Mining companies can’t run a lean operation without the best measurement”

innovative products but that wouldn’t be a basis for growth on its own. I say that from experience. In the USA distribution of product is effected by hiring the right independent manufacturers and organisations and training them to be able to support the customers. Throughout my career I have helped customers grow by supporting them at every stage and that philosophy is the foundation for HAWK’s growth today too.” The greater part of HAWK’s sales are still in Australia, but over the years it has expanded into many other markets, initially by striking agreements with specialist mining distributors but also working directly with the major extraction and processing concerns. HAWK lists Rio Tinto, BHP Billiton, Xstrata, Outotec and FLSmidth Minerals among its impressive line-up of international customers. “Mining companies can’t run a lean operation without the best measurement. They are competing with other companies and the ones that are the most efficient at getting the ore out of the ground, processing it and selling it are the ones that are doing well. We help them do that,” he asserts. And since the technology has applications in a host of other industries, notably chemical process and the oil & gas sector but including cement, pulp & paper, and food, the company has expanded its research focus to develop custom solutions for them. Right now, says Evans, HAWK is exploring exciting opportunities in the growing water and wastewater industries. It is also expanding its geographical footprint, and about six years ago entered

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Microwave blocked chute protection

the China market by setting up a joint venture sales company, the Chongqing HAWK Chuan Yi Instrument Co. Ltd. HAWK’s forward strategy is definitely to continue to lead with its products for mining, which include advanced monitoring systems for thickeners, slurry tanks, tailings dams and many more applications. At the same time it will ensure continuity during mining’s periodic slowdowns by developing product for other sectors. “Our research teams are currently very busy developing new products for our oil & gas (O&G) customers. One of those is using fibre optic for pipeline monitoring, which is able to give us more information from a single sensor,” he reveals. The technology uses ‘smart sensors’ distributed across the network. These are able to identify anomalies in pressure, temperature and sound and send that information, together with the precise location and size of any leak to the control room in real time. The system is robust and reliable enough to be used in the harshest environment, and combines external and internal monitoring. The sound element is particularly interesting in places where pipeline security is an issue, as it can detect anyone digging, or even walking near the pipe. The product is being tested now and its launch is eagerly anticipated. “This is a crossover product that will be valuable in the water and wastewater market, where it is particularly useful in older infrastructures,” he says. Crossover is a feature of many HAWK innovations. Flow of materials is after all a universal matter. The company’s new generation of microwave products is a case in point - devices used among other things for blocked chute detection and analysis in

“The New Generation Gladiator Microwave products have proved very effective in eliminating false trips”

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Hawk Measurement Systems (HAWK)

Ship loader positioning and protection

mines. It is, he explains, a circular mining but the same microwave Did you know? product is used for shiploading polarised device which eliminates and also for collision detection the problem of false tripping. and prevention. “Whatever the mineral, if there is 25% Water management is a moisture present it can block the Of revenues big problem in mining, one to chute and you have to shut down devoted to R&D which HAWK has addressed its the operation. But false tripping attention over the years. The happens when the device says $500,000 water and wastewater sector it is a blocked chute but it really Estimated is a market in which HAWK has is not. It still means they have to hourly cost of not been a big player, but its shut the conveyor down and then downtime to issues are not much different, start it back up again. The New Australian mining. Jack Evans emphasises. “Our Generation Gladiator Microwave products lend themselves very products have proved very nicely to measuring difficult effective in eliminating these level applications. We have a product that false trips.” He is not exaggerating: in Australia can measure even when there is foam downtime is typically costing the industry present, or dust or vapours, and in difficult $500,000 per hour. A recent installation of sewage applications like turbulence. We HAWK blocked chute switches saved Cadia have hundreds of level devices installed in Mining over $2.8 million in a single year, the City of New York for measuring water according to the client’s own figures. This is levels underground and to determine where a classic answer to a real world application the flow of all their waste water is going and challenge, he adds. Our example may be from

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Jack Evans Director of global operations

Bed level and chemical dosing control for thickeners

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Jack currently lives in Melbourne Australia with his family. Jack has been involved with the process controls industry for over 25 years and recently served as Chairman of the Measurement, Control & Automation Association. Prior to HAWK, Jack was President, CEO of KROHNE, Inc. in Peabody, MA and National Sales Manager for Milltronics in Arlington, TX. Previous to his tenure with Milltronics, he spent seven years with Micro Motion in various positions. He holds a Bachelorâ&#x20AC;&#x2122;s Degree in Industrial Engineering Technology from Georgia Southern University in Statesboro, Georgia, United States.


Hawk Measurement Systems (HAWK)

Ship loader collision detection

“We have been lucky in getting very talented and qualified people who believe in where the company is going” send the information back to their control room so they can open and close valves and gates as they need to.” HAWK spends an impressive 25 percent of its annual revenues on research & development, mostly targeted at new product development to solve customers’ application issues. Last year the company launched its new Sultan Sonar for flocculent (the stuff that binds together the sludge particles) interface or sludge bed-level measurement for the water and wastewater industry, where it fits an important niche. In the mining and power industries, HAWK’s ORCA industrial bed level controller is recognised for providing robust and dependable bed level measurements in punishing environments. Sultan Sonar is built on this same proven technology. Now the research teams are developing guided wave radar technology, which gives a very precise continuous reading, is energy efficient, and can operate in difficult situations where other approaches like throughair radar. “This is an exciting growth product for us, and one which is being developed not just for flow and level applications but also for interface. One of the big problems in O&G is oil & water interface in the crude, and we are close to having a product developed to be able to measure that crude level both from the top down and from the bottom up. Lots of things differentiate HAWK as a company. One might select the ability of all of its instrumentation to be accessed remotely from anywhere in the world via the cellular

networks. That’s of increasing importance as mining companies and others move towards total automation - led by Rio Tinto which already has remotely controlled conveyors, and even trucks. However asked what the most important differentiator is Jack Evans, with hardly a pause for thought, settles on its human capital. “We have been lucky in getting very talented and qualified people who believe in where the company is going, and if we can get the right people we can do almost anything!”.

Hawk Measurement Systems (HAWK)

+61 (0)3 9873 4750 info@hawk.com.au @HawkMeasurement www.hawk.com.au www.hawkmeasure.com

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Intertek

Testing times

Intertek, a leading quality solutions provider to industries worldwide, is providing essential quality, safety, compliance and performance monitoring as part of the growing range of services it offers to clients in Africa

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ntertek traces its history back nearly 130 years to a marine surveying company founded by the entrepreneur Caleb Brett in the 1890s to answer a vital need at the time - independent testing and certification of ships’ cargoes. Through a long process of amalgamation and acquisition it has since grown to become the global go-to resource for almost every industry sector. Employing more than 36,000 people at 1,000 laboratories in more than 100 countries the FTSE 100 group ensures quality, health, environmental, safety, and social accountability standards for virtually every market. It holds extensive global accreditations, recognitions, and agreements – and its expertise in overcoming regulatory, market, and supply chain hurdles is a legend. From that and its performance (delivering a first half operating profit of £152.3 million this year) it is clear that Intertek is well embedded in global markets. As African countries establish their regulatory frameworks, the continent is becoming an extremely important region to the group. Many governments have put in place stringent requirements to ensure their consumers are protected from substandard products and goods. Intertek works with governments in Africa to support such programmes. Exploration activity in Africa is increasing, particularly in Angola, Mozambique, Tanzania, Central Africa and Ghana. Ultimately, customers in these areas seek support where limited infrastructure is present.

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“People don’t want ‘more stuff’ … they want to know how to use, implement and improve current systems and ways of doing things”

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Intertek

“It is not about more regulation, audits, people or equipment; it is about behaviour”

Intertek has a presence in 25 African countries, but with a dozen offices, South Africa might be called its heartland. “Industry Services is the single largest division,” says Regional Director Paulo Pereira. “We help clients to manage risk and optimise returns within the Oil and Gas, power, nuclear, mining, construction, engineering and chemical industries. In the sub-Saharan region we operate in three outstanding areas; technical inspection services, technical staffing services and asset integrity management services.” Within South Africa Intertek is already identified as the market leader within the petrochemical testing industry. However this is rapidly becoming the case throughout Africa, with state of the art laboratories based in Durban, Cape Town, Johannesburg, Beira, Dar es Salaam, Mombasa, Luanda, Abidjan, Takoradi, Limbé and Lagos The company’s recently established oil condition monitoring laboratory in Johannesburg is staffed by leading tribology experts. Backed up by a custom-designed web portal and reporting system, this service is destined to become a key service provider to the transport and mining industries of subSaharan Africa. Environmental compliance is becoming a huge issue in this sector. “We have recently established an Environmental Division that assists clients with environmental monitoring and testing. Our Environmental division has a dedicated team which is able to assist clients with legislation compliance by recording the

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“We offer a full consulting service, from identification and analysis of needs, through to skills development, on-the-job coaching and competency assessment” impact their activities have on the environment. Our state-of-the-art environmental laboratory is based in Johannesburg and specialises in environmental testing of land, water and air.” Intertek is also working closely with industry as South Africa prepares for the introductions of biofuels.

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Having joined the team in 2005, Karin Ovari has worked across various highhazard industry disciplines providing value-based safety leadership and operational performance development interventions. Now the regional manager for Intertek Consulting & Training (IC&T) Sub-Saharan Africa she was


Intertek

given a neat compliment by one client, who said: ‘We need you to come and sprinkle your fairy dust – we don’t know what it is, but it works!’ “Thankfully with the development of our Safe Operations and Performance (SOP) framework, not only are we able to sprinkle our fairy dust, we are also able to measure it!” The petrochemical industry is notoriously high risk and consequently obsessed by safety, says Ovari. One of the aims of IC&T is to help organisations and individuals achieve their safety vision. Winning the hearts and minds of employees and co-creating a culture of safety requires visible leadership, she says. “Visible leadership is where the rubber meets the road; it is the verbs in our safety policies

and procedures. We offer a full consulting service, from identification and analysis of needs, through to skills development, on-thejob coaching and competency assessment.” But this is done with pragmatism. “People don’t want ‘more stuff’ to implement or know; they want to know how to use, implement and improve current systems and ways of doing things. At IC&T we work with organisations’ current processes and procedures to establish how they can be revitalised and made more efficient and productive!” Research suggests the single most important tool to address on-the-job performance is through the one-on-one interactions of leaders with the workforce.

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“When something goes wrong, it seems easier to write a new policy or procedure to prevent it happening again. However, most organisations have plenty (if not too many) processes, policies and procedures. What we should be doing at that stage is rather asking the tough questions about our culture of safety and how our leaders live and drive safety. It is not about more regulation, audits, people or equipment; it is about behaviour. At IC&T we help to ask those tough questions – and to get honest answers!” IC&T is now spreading its wings with the launching of a Mozambique operation. As we are constantly reporting in these pages, this is an industry that is very sensitive when it comes to safety, and Intertek helps participants to approach it as something they believe is the right thing, not because they have to or for fear of reprisal. Greg Dinkelman, Business Development Manager for Calibration and Metering Services, Sub-Saharan and West Africa, joined the team in 2012, bringing more than a decade of industry experience both in management and in the field. “We are very positive about the potential to grow the calibration and metering business across the continent,” he says. “Intertek has many services that are active in the region and our exploration and production team has identified the need for further development of our metering and calibration services.” Where products and processes are being inspected, measured or monitored, it is essential that the instrumentation being used is accurate and reliable, he adds. “The calibration process determines that the

“In 2014, we will be taking delivery of a high-specification mobile calibration unit”

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Intertek

measuring equipment is performing within specification and is fit for purpose.” Working with Intertek on calibration and metering brings increased value to its customers’ products and processes, he adds. “For example, these services are highly important for oil and gas companies to improve their measurement accuracy which ultimately reduces errors and saves money.” Over the past three years, Intertek has invested substantially in equipment and training to support upstream and downstream measurement services in Nigeria, Ghana, Tanzania and Angola as well as South Africa, Dinkelman emphasises. “In 2014, we will be taking delivery of a high-specification mobile calibration unit to support the upstream and midstream industries. This will be the first of its kind for Intertek in Africa, offering clients increased scope when deciding on a service provider and keeping Intertek at the forefront of these industry services.”

Intertek‘s services go way beyond testing. It has earned a reputation for helping its customers increase the value of their products, gain competitive advantage, develop trusted brands and minimise the adverse health and environmental impact of its products and processes. Over the coming year it will continue to extend its footprint in Africa. “A newly established lab in Johannesburg will allow our customers in the agriculture sector to enjoy the professional quality experience currently enjoyed by our petrochemical and petroleum clients,” concludes Karin Ovari.

Intertek

+27 11 028 8551 info@intertek.com @Intertek www.intertek.com

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Š Oando Plc.

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Oando Gas and Power

Networking Nigeria With a long history of service Oando Gas and Power Limited (OG&P) has emerged as Nigeriaâ&#x20AC;&#x2122;s leading private sector developer of gas to both commercial and private consumers

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Š Oando Plc.

This is a caption, hit return for another line

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Oando Gas and Power

here’s no doubt that Nigeria is on the move. With a population of 175 million it is by far the largest nation in Africa, and this year it overtook South Africa to become the largest economy in Africa too, worth more than $500 billion. No wonder it is ranked as one of the MINT group of emerging economies together with Mexico Indonesia and Turkey - the powerhouse economies of the future. As well as being the largest oil producer in Africa, Nigeria holds the largest natural gas reserves on the continent. Nigeria had an estimated 182 trillion cubic feet (tcf) of proven natural gas reserves as of January 2013, making it the ninth largest natural gas reserve holder in the world and the largest in Africa. It is not surprising therefore that it

T

the adjoining areas. Under this agreement, Gaslink became Nigeria’s premier gas utilities company. It is one of the few companies in Nigeria involved in the piping and distribution of natural gas to industrial and commercial as well as consumers. Gaslink operates a 20 year gas sale and purchase agreement (GSPA) with the Nigeria Gas Company. OG&P is the developer of Nigeria’s foremost natural gas distribution network and captive power solutions. It pioneered the private sector piping and distribution of natural gas to industrial and commercial consumers, successfully reviving private sector participation in the gas distribution business in Nigeria. With an ever-expanding pipeline grid in Lagos State, it is taking bold steps towards building sub-Saharan Africa’s

“Lagos State has reported potential savings of about $3.6 million per annum derived from the services provided by the Akute Power Plant” has been keen to develop its indigenous gas market as well as exporting it. In fact Nigeria established a Gas Master Plan in 2008 that aimed to reduce gas flaring and monetise gas resources for greater domestic use and to export regionally and internationally. However the development of a gas network goes back long before this. it was in 1988 that Gaslink was founded, originally created to promote and develop infrastructure for natural gas distribution and utilisation in industries and households in Nigeria. In 1999 Unipetrol PLC (now Oando) assigned its right to develop gas distribution infrastructure for the Greater Lagos Area to Gaslink. The franchise area spans across the seven industrial estates comprising Ikeja, Ojota, Ilupeju, Matori, Isolo, Amuwo-Odofin, Iganmu, Ijora, Apapa and

most extensive gas pipeline network. By a long way the biggest local natural gas distribution company in Nigeria, supplying cheap, reliable, efficient, safe and clean fuel to industries in the country, OG&P gas distribution coverage include over 100 kilometres of distribution pipeline system in Lagos; another 128km in Akwa Ibom and Cross River States, as well as a concession award for the Port Harcourt Gas distribution franchise in River State. Today OG&P is the largest private sector gas distributor and developer of captive power solutions in Nigeria. The company pioneered gas distribution in the greater Lagos area, and is currently expanding into eastern Nigeria and pushing out its network to the fast developing manufacturing clusters around the Lagos area. To date it has completed 230 kilometres

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oilserv

© Oando Plc.

Oilserv relationship with Oando Gas and Power started with the award of the following Contracts: • EPC Contracts for construction of Gas Distribution Network Systems: Phases 1B, II, III and IV. Phases 1B, II and III completed and Phase IV is On-going • EPC Contract for construction of 128km x 18-inch South-South Gas transmission pipeline system. Contract Completed • EPC Contract for construction of Akute Independent Power Plant. Contract Completed • Contract for Sectional Replacement of Leaking Gas Pipeline section of Greater Lagos Phase III Gas Distribution Network system. Contract Completed • Upgrade of Ikeja/NGC City Gate. Contract On-going www.oilservltd-ng.com

Akute Power Plant

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of gas pipeline grid reticulation and it has as one of its main objectives the goal of linking western and northern Nigeria as well. OG&P is now well positioned to benefit from its first mover advantage and dramatically increase its customer footprint in the near term. The company’s aim is to replicate the success of the Lagos gas distribution network in other parts of Nigeria. OG&P continually looks to expand its horizons by developing unique independent power generation solutions in areas where it has existing gas infrastructure while taking advantage of synergies with the exploration and production assets controlled by its parent, Oando plc. Gas being an abundant and cheap fuel in Nigeria it clearly has a front line role in powering the country’s economic future, however it is not all about gas, which is also being exported in massive quantities - Nigeria is already the fourth largest LNG exporter in the world. Domestically the gas can be


Š Oando Plc.

Oando Gas and Power

Inside the Akute Power Plant

for approximately 72 percent diverted to generate electricity Did you know? of the total capacity of Lagos for municipal as well as for Water Corporation. Lagos State private sector projects. It was in has reported potential savings 2008 that the Akute power plant 230 of about $3.6 million per annum was incorporated. Akute Power kilometres derived from the services Limited was a project company Gas pipeline provided by the Akute Power set up to develop and operate completed Plant, whilst ensuring that a 12.15MW independent power by OG&P many Lagosians have access to plant made up of four 3MW uninterrupted supply of potable gas-fuelled engines, for Lagos $3.6 million water to their homes. Water Corporation in Akute. This Annual saving to Another OG&P subsidiary development also incorporates Lagos from Akute Alausa Power L i m i te d the construction of a 13km natural Power Plant (ALPL) arose out of a Power gas pipeline which delivers Purchasing Agreement natural gas to the facility. between Oando PLC and the The power plant has helped Lagos State Government. This publicthe Lagos Water Corporation to achieve a private Partnership project was conceived 300 percent increase in its existing capacity in response to the need for stable and cost utilisation, through the delivery of 24 hours effective electric power supply to the Lagos uninterrupted electricity supply to its two State Government Secretariat in Alausa, main water treatment plants at Iju and Ikeja and its affiliate surrounding agencies, Adiyan in Lagos State. Between them the Iju which recognised that the provision of a and Adiyan water treatment plants account

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Š Oando Plc.

Wale Tinubu, GCE, Oando PLC

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Oando Gas and Power

“Nigeria holds the largest natural gas reserves on the continent”

reliable and consistent power supply was essential to their proper functioning. Commissioned in 2013, the 10.6MW capacity plant provides power to the Secretariat using two 3.349MW GE Jenbacher J620 Reciprocating gas engines as its primary source with two 2.5MVA MTU diesel generating sets serving as backup. Gas is supplied to the plant via the Ikeja 1B pipeline network belonging to Gaslink Nigeria Limited, once again demonstrating the leveraging ability of Oando plc on its existing infrastructure to deliver quality service to its customers. With plans to expand the plant’s distribution network reaching an advanced stage, and with a BOT model and a 10 year tenure already in place, ALPL is seen as OG&P’s progressive captive power solution for a government administration that is building the framework for a better Lagos. Nigeria alone has an estimated requirement for well over 10,000 kilometres of gas pipeline to reach its main industrial clusters, says OG&P’s CEO Mobolaji Osunsanya. So far his company and others have built out less than 2,000, an indication of the huge remaining opportunity in the sector. “There is ample scope, given the right support, for this company and others to get into the game and build this grid,” he says.

Oando Gas and Power

234-1-2601290-9 info@oandoplc.com www.oandoplc.com

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SWA

A royal start to a n

The opening of King Mswati III International the Swaziland Civil Aviation Authority (SWAC who spoke to us of his vision 66

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ACAA

new aviation era

Airport was the proudest moment to date for CAA) and its Director General, Solomon Dube, n for Swazilandâ&#x20AC;&#x2122;s prosperity BE Monthly [ Nov 2014 ]

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n March 7 this year King Mswati III of Swaziland officially opened the new international airport, also known as King Mswati III. A key component of the Millennium Development goals (MDG) programme, the $280 million project is not unattended by controversy, but is seen as essential if Swaziland is to make the most of its geographical advantages and become a mini hub within southern Africa, providing a complementary role to OR Tambo Airport only a couple of hundred miles to the west.

O

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Like all civil aviation activity in Swaziland, King Mswati III International Airport is administered by the Swaziland Civil Aviation Authority (SWACAA). This organisation was established in 2009 as a parastatal organisation, with the mandate to provide, on a commercial basis, air transport services and the regulation of civil aviation activities in Swaziland in accordance with international standards. A robust regulator was much needed, as Swaziland was not up to speed with international practice, explains Director


SWACAA

Mr James Danga (SADC),Mr Serge Divounguy (ICAO TCB) Mr David Waller (EASA),Mr Solomon Dube (SWACAA) Mr Jacinto Lopez Naval (EASA)

“It became necessary to establish an autonomous body that would focus on the growth and professional management of the industry”

General Solomon Dube. “The State of Swaziland had been audited in July 2007 under the Universal Safety Oversight Audit Programme agreed to by International Civil Aviation Organisation (ICAO) member states in an assembly of 2004. The overall level of effective implementation (LEI) of ICAO standards and recommended practices was found to be 16.7 percent.” Clearly this would not do. A corrective action plan (CAP) detailing what Swaziland needed to do to correct the deficiencies

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found by the audit was submitted to ICAO and Dube, who had been involved in developing the CAP, was appointed to lead the newly set up authority. Dube is the only executive member of the Board. As managing director of SWACAA he presides over Executive Committee (senior management) meetings. “As civil aviation is a very technical and heavily regulated global industry,” he explains, “it became necessary to establish an autonomous body that would focus on the growth and professional management of the industry, with the Minister of Transport as its political head.” The

inauguration of the authority set the stage for modernisation of civil air communications in Swaziland, and by far the biggest task in hand was the construction of the new Sikuphe International Airport, now renamed King Mswati III, as a fitting gateway to the country for the tens of thousands of tourists who fly in annually to visit Swaziland’s game parks and the nation’s rich culture. The new airport can accommodate fully laden Boeing 747 Jumbo jets and other large aircraft like the Boeing 777 and Airbus 340. KMIII is located on flat terrain with good visibility and is a strategic gateway to

“To attract foreign direct investment and foreign exchange, overseas visitors to the country and the region need direct access”

Aviation Security Officers: Saneliso Mabuza and Likhwa Dlamini

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SWACAA

Aerial view of King Mswati III International Airport

the airport staff offices; and Swaziland and the surrounding Did you know? on the first floor a further region for tourism and business. passenger concourse and arrival The new airport will boost and departure lounges. Swaziland tourism because the 300 KMIII is now the Kingdom’s old airport in Matsapha could Hourly passenger major international hub receive only regional aircraft. capacity at KMIII connecting Swaziland directly Tourists used to have to land in with the world. The airport is South Africa and take a bus to $280 million designed to accommodate get to Swaziland, and cargo from Cost of the projected future air passenger all over the world was dropped new airport and cargo demands for the in South Africa and had to be region, and incorporates brought in on trucks or by rail. terminal buildings, a VIP This is a thoroughly 21st passenger lounge, air navigation century facility that currently and ground handling equipment, and all has more bells and whistles than the amount associated airport operations equipment. of tourist traffic – currently around one million Despite a slow start two airlines have now a year – really requires. The 7,000 square confirmed operations at the airport with metre passenger terminal can handle and additional flights to Johannesburg, South process about 300 passengers an hour, while Africa and new routes directly to Durban, the parking area caters for 200 vehicles. Mozambique and Cape Town. The three levels of the terminal building The former international airport will now house, from the bottom up: the passenger be used for other ventures since the new concourse and baggage handling facilities;

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facility can cope with all the international and regional traffic for a long while to come, continues Solomon Dube. “The plan is to develop Matsapha Airport into an army base and general aviation facility. There is also a viable proposal on the table to develop an aviation training centre there – Swaziland is the ideal place for pilots to learn their skills because of our quiet skies!” Though SWACAA will now have the job of attracting more international carriers to join in with Swaziland Airlink and choose Swaziland as a destination or stopover, further development is already being planned, says Dube. “Phase 1 was just enough to enable aircraft to land on a certified airport. Phase two is planned but will only be implemented once there is a business case in response to traffic demand. Swaziland is close to the tourism nodes of South East Africa. It is peaceful and friendly with all African countries. The potential exists to create an alternative gateway for tourists to the SADC region and more specifically to the East Three Route developed by the tourism departments of Swaziland, Mozambique and South Africa. There is also a substantial number of people from East Africa who visit Swaziland for training purposes. It is expected that as Africa increases its use of air transport, there will be an increased number of direct flights between cities.” But tourism is the sector that must at all costs be targeted, he continues: “In order to attract foreign direct investment and foreign exchange, overseas visitors to the country and the region need direct access. The new airport provides that access and does it in

a simple but elegant manner to the highest international standards.” SWACAA has been tasked by the government to make sure that ICAO’s CAP is fully implemented and good progress has already been made towards raising the scores. “We have led the implementation and also roped in experts from developed

“Swaziland is the ideal place for pilots to learn their skills because of our quiet skies!”

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SWACAA

3.6 km runway of King Mswati III International Airport

countries and ICAO Technical Cooperation Bureau to give practical on job training to our inspectors. An ICAO Validation Mission is planned for April 2015. And we are implementing compliance with the ICAO safety management systems standard, which encourages safe working practices among employees at all levels. Strategic objectives for SWACAA over the next twelve months include growing traffic at KMIII, and developing the entire air transport industry in Swaziland, not forgetting the Nhlangano airstrip in the southern part of the country, which is predominantly used by the forestry farming community. Dube would also like at least ten percent of the

1.2 million population of Swaziland to start using air transport .He would also like to see an increasing flow of goods and cargo, in both directions, through the airport. All of these objectives are brought into focus by the presence of the new airport, he says, and SWACAA will continue to work tirelessly to deliver them.

swacaa

(00268) 2518 4390 info@swacaa.co.sz www.swacaa.co.sz

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[ Issue 83 ] BE Weekly


Kishugu

Battling for the greater good Kishugu, which has its roots in forest and wildfire combating, suppression and prevention, is set to light up the global stage with its international experience of delivering integrated fire management services

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ire is a friend to mankind - until it gets out of hand: then it can become a formidable enemy, one that can only be subdued by an army versed in both conventional and guerrilla warfare and co-ordinated ground and air operations. As Johan Heine, co-Managing Director of Kishugu (formerly the FFA Group) speaks always passionately - about the business he founded 28 years ago in 1986, he relies heavily on military imagery. Well, that is natural enough for a former air force pilot, but it is much more than a habit of speech. Firefighting, which is Kishugu’s raison d’être, is a lot like war, he says. Reconnaissance, intelligence gathering, getting to understand the enemy and the reason why there has been a local uprising is

F

farming. But fire is capricious, and so is the weather. It only takes a change in wind speed or direction and what was a controlled burn can turn into a conflagration. Heine, one of the most experienced firefighting pilots in Africa with more than 25 years of aerial firefighting experience under his belt, established a voluntary association of forestry landowners, the Forest Fire Association (FFA) in 1996. FFA hired in equipment and resources as required, focusing on aerial firefighting, dispatch and coordination. By 1995, the organisation had grown to cover up to 70 percent of South Africa. Along the way, Johan Heine had assisted the Department of Water Affairs and Forestry with the drafting of South Africa‘s veld and

“Aerial support needs ground support. Without that it is like fighting a war without boots on the ground” vital. Whatever units there are on the ground near the outbreak have the task of reporting back to HQ so that reinforcements are ready if needed. If the initial skirmishes end in victory, then the troops can stand down. If not the conflict escalates, and an extended attack plan is put in place and carried out by a strike force. Sometimes that first crucial battle is also lost, and you have a war on your hands. In the more arid parts of Africa fire has always been part of the natural environment and nature takes it in its stride. Lightning ignites the savannah, burning large tracts, and when the fires peter out and the rains come the vegetation renews itself and wildlife returns. And controlled burning is likewise is a part of traditional agricultural practice that has been carried on into modern large scale

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forest fire laws in 1989 and was instrumental in driving the development of Fire Protection Associations (FPAs) in South Africa. However by 2003 it was becoming clear to him that aerial attack was only half the solution to successful fire control. “Aerial support needs ground support. Without that it is like fighting a war without boots on the ground - if you only have air attack in your strategy there is no way you will be really successful. That led to the birth of the FFA Group, now rebranded as Kishugu (which is the Swahili word for anthill - appropriately for an organisation in which every individual works for the common good). It also gave rise to the mantra he coined, and which has now gained currency in global firefighting circle - ‘Integrated Fire Management.’ “A lot of


Kishugu

Working on Fire addresses the prevention and control of wildland fires

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firefighting agencies in the world have fallen flat because they do not have a sufficient level of integration between dispatch, coordination, aviation, ground support, research, logistics and all the other things that go to make up an efficient operation. So we try not to approach each issue in a silo!â&#x20AC;? Today Kishugu Aviation alone operates a fleet of 50 aircraft, of which it owns 70 percent. These provide national and international aerial firefighting services with resources made up of command and control aircraft, helicopters

and helitac crews, and single engine air tankers with water carrying capacities of between 2,000 and 3,000 litres. The most recent of these are four Air Tractor AT 802F aircraft, the largest single engine water bombing aircraft in the world. This plane rivals the performance of twin-engine tankers, but at a fraction of the cost. It uses a patented, computer-controlled firegate to deliver precise coverage levels with extreme accuracy. You could call these Air Tractors the sharp end of the operation, but the division employs

â&#x20AC;&#x153;A lot of firefighting agencies in the world have fallen flat because they do not have a sufficient level of integrationâ&#x20AC;?

Ground firefighting operation

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Kishugu

Kishugu provides specialised and certified training

around 200 people in all, certified training globally Did you know? including 70 pilots who between focused on but not restricted to Integrated Fire Management them fly up to 18 Cessna spotter, and fire-fighting related or command and control planes, 50 training; Integrated Forestry a fleet of 20 helicopters, and a Aircraft in Services, which provides endnumber of fixed wing water Kishuguâ&#x20AC;&#x2122;s fleet to-end forestry and silvicultural bombers. The division has its own services such as harvesting, Aviation Training Organisation 5,000 transport and fire protection (ATO) to ensure that the pilots Young people to plantation owners and Fleet fully understand the special helped by WoF Management, which furnishes a demands of firefighting. When it programme in wide range of high quality and comes to the big beasts though, South Africa reliable vehicles to its clients, pilots who are going to fly the applying global best practices to Air Tractors go for conversion its fleet management principles training to Avialsa in Spain, the to ensure the safety and standardisation of biggest Air Tractor dealer in the world, to vehicles and equipment. benefit from the experience of a country with Working on Fire (WoF), today the largest unique experience in aerial firefighting. private supplier of Integrated Fire Management When its ten subsidiaries that each adds Services in the world and operating in seven value to the core proposition, the Kishugu countries across four continents, started in group as a whole employs more than 6,000 2003 as a government-funded job-creation people. Among these divisions are Kishugu programme within South Africa. Now its Training, which provides specialised and

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“It is very satisfying to be able to be solving the problems of firefighting and tackling youth unemployment at the same time” largest operations are in South Africa and Chile. Implemented by Kishugu in the domestic market, where it currently benefits more than 5,000 people, 85 percent of them are youths, and 37 percent female (the highest level in any comparable fire service in the world). The model has exported successfully and today

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Kishugu under the Fire International brand works with minority partners in Brazil, Chile, and Australia. “There was a huge problem of the youth unemployment in Spain and other countries. It is very satisfying to be able to be solving the problems of firefighting and tackling youth unemployment at the same time.”


Kishugu

The Air Tractor-802F is capable of delivering retarding foam and water on fires in places that most other craft struggle to reach

WoF has given Kishugu massive credibility and authority internationally, and also allowed it to develop contracts tailor made for parastatal and private companies to provide air and ground fire services and training. Almost nonchalantly Johan Heine drops the information that the company has grown at 30 percent per annum for the last ten years. That stellar performance could eventually lead Kishugu to go public but for the time being it has its work cut out keeping its services at the level they need to be in South Africa, while expanding its footprint in South America and Australia. 2014 has been a drought year and consequently very demanding. Kishugu had

far exceeded its planned flying hours before September – always the worst month – had even started. “But we are winning the war,” says Heine. “We have made a huge difference over the last ten years and have come out on top of the whole fire management problem, no question!”

Kishugu

013 741 6400 info@kishugu.com @kishugu www.kishugu.com

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VC Bird Interna

Destination the

Antigua and Barbuda is a top 20 destination, favoured tourists are now returning, and China. which is helping i may provide a major new sou 82

[ Nov 2014 ] BE Monthly


ational Airport

e idyllic isles

by the wealthy: its economy was hit by the recession but it build a new terminal at VC Bird International Airport, urce of Caribbean sun seekers BE Monthly [ Nov 2014 ]

83


he Rt Hon Dr Vere Cornwall Bird Sr was the first Prime Minister of Antigua and Barbuda, serving from 1981 to 1994, just five years before his death in 1999 - and upon retirement he was declared a national hero. Bird was unique among West Indian politicians, lacking any formal education except primary schooling. He was an officer in the Salvation Army for two years but because he saw the way the land owners were treating the local black Antiguans and Barbudans he decided to leave his post to fight for the freedom of his people. His drive, conviction and passion for Antigua propelled VC Bird to get involved in the independence process for Antigua in 1981. If it wasnâ&#x20AC;&#x2122;t for his

H

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passion Antigua would not be entering its 33rd year of independence. In 1985 Antiguaâ&#x20AC;&#x2122;s international airport, which was first named Coolidge, was renamed V.C. Bird International Airport in his honour. The history of the airport goes back to 1942, when the United States Army constructed an aerodrome in Antigua for military use. A few years later in 1949, The USA turned the base over to the Government of Antigua and Barbuda. Civilian use of the airport commenced in 1952 and the airport became known as the Coolidge Airport. During the 1960s to early 70s, runway and airside improvements were carried out and the runway 07/25 was extended to 5,700 ft, then to 7,500 ft and finally in 1972


VC Bird International Airport

extended to 9,000 ft through a grant by the Canadian Government. Later that decade the parking apron was further expanded and two additional parking positions were installed for turbo-prop aircraft. A new passenger terminal building was constructed in 1982 and became operational north of the previous terminal and consisted of an area space of 60,000 square feet. Over the years V C Bird International Airport attracted arrivals by PanAM, Eastern Airlines, Trans Canada Air Lines (now Air Canada), Air France, American Airlines, BWIA, British Airways, Lufthansa and LIAT with services to the Caribbean, North America and The United Kingdom and Europe.

Tourism has always dominated Antigua and Barbuda’s economy, accounting for nearly 60 percent of GDP and 40 percent of investment. The islands are nothing if not idyllic, and Barbuda has been described as, almost literally, one big beach. Its position at the centre of the Leeward Islands makes it accessible to visitors from North America, Europe and South America, a fact not unrelated to the rapid expansion and strategic importance of VC Bird International. However the country has its eye on China as a very large source of future tourists. As Antigua’s Ambassador to China David Shoul puts it: “There’s no reason why Antigua should not be the hub for Chinese tourists flying in to

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[ Nov 2014 ] BE Monthly

TECHNOLOGY & BUSINESS

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VC Bird International Airport

join cruise ships and explore the Caribbean.” The airport is key to this aspiration. In the words of minister of tourism, John Maginley: “The first and last impression you have of Antigua and Barbuda is the airport. So if we have an efficient entrance into Antigua and people leave the country comfortable we think this will all augur very well for our tourism product. The airlines are very excited because we will be looking after their customers at a higher level than we are doing currently.” Maginley is referring to the current expansion programme that has seen a new terminal, as part of a larger expansion of airport facilities. The 23,000 square metre terminal will feature four jet bridges, 26 check-in counters, 20 immigration desks, retail space, a food court, modern amenities and wi-fi access. work began in November 2011 on the construction of the terminal building which is designed to handle 1,800 passengers per hour and up to 1.5 million passengers per year. The project is being financed by The People’s Republic of China and constructed by The China Civil Engineering Construction Corporation. Though completion has been delayed, the latest estimate is that the building will be ready to be commissioned during the first half of 2015. In a visit to the construction

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“The airlines are very excited because we will be looking after their customers at a higher level than we are doing currently”

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inspired Your weekly digest of business news and views

www.bus-ex.com 88

[ Nov 2014 ] BE Monthly

site earlier this year Antigua and Barbuda prime minister, Baldwin Spencer, said, “When I last toured the terminal I knew it was going to be a good facility but now that I have seen the progress this is absolutely amazing. This will take Antigua and Barbuda to the top level where airport terminals are concerned.” The government said the economy of Antigua and Barbuda has benefited from the project, with around 50 Antiguans and Barbudans currently employed at the construction site. “Over US$50 million has been pumped back into this economy because a number of subcontractors and a number of agencies have been involved in providing services, and moving goods and equipment from areas such as the Deep Water Harbour. Certainly a number of local people have benefited directly from this project,” Spencer added. One positive step, vital before the terminal can be put into operation, has just been taken.


VC Bird International Airport

As of October 30 The 10 member transitional team that will oversee the move to the new terminal is now in place. The committee, chaired by Chief Executive Officer of the Antigua and Barbuda Airport Authority Stanley Smith, is tasked with educating the public on what will take place during the transition period. The team will also oversee training programmes for staff members at the authority. “We had our official meeting a few weeks ago,” Smith said. “During that meeting I outlined the process and the expectations and from that they have formed some sub-committees.” Smith said the group will communicate with the public about the progress of the ongoing construction prior to the opening date of the multi-million dollar facility. So though the date for the handover of the new terminal building has been pushed back until next year, it’s still doing well given the difficult economic climate, he believes:

“The building has progressed much faster than we had anticipated; they are now doing the tiling of the upper floor so the building will be completed on time, it’s just that we have some slight delays,” he said. The fundamentals support his enthusiasm. UK visitor numbers for the first half of 2014 are up by 17 percent from 2013. Traditionally a high-end destination, based on the wealth of four and five-star hotel stock available, and the cost of flights, business has been affected by consumers tightening their belts, but the islands are bouncing back post-recession. VC Bird International Airport

(268) 484 2300 info@abairportauthority.com www.vcbia.com

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