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SPECIAL EDITION:
African viation Showcasing the success of Africa’s growing aviation industry
Aerosud Aviation
Comair
Swaziland Civil Aviation Authority
“A single part is critical to the success of the whole�
Integrated aviation manufacturing solutions Aerosud’s integrated manufacturing solutions delivers 1,4 million parts per year to the global aviation industry. Established as a leading smart supplier Aerosud is capable of adding value to partnerships involving programme management, design, development and production processes.
www.aerosud.co.za
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contents
SPECIAL edition: AFRICAN AVIATION
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SWACAA
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SWACAA Executive Insight
Solomon Dube Director General of the Swaziland Civil Aviation Authority (SWACAA).
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Aerosud
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Aerosud Executive Insight
Flying high With more than 3,000 Airbus A320 and around 4,000 Boeing 737 aircraft having come off the production lines fitted with parts manufactured by Aerosud, the South African brand has truly come of age.
Dr Paul Potgieter The Chairman of Aerosud Aviation discusses the lessons he has learned throughout his career.
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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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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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Starlite Aviation Group
A flight path to the future A proactive approach to growth has seen Starlite Aviation Group position itself perfectly for the years ahead.
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Comair
Flying through turbulence Comair Ltd continues to deliver operational excellence and consistent profitability in what can only be described as an economic headwind: its CEO Erik Venter explains how.
Kenya Airports Authority (KAA)
Flying the flag for Kenya KAA is helping to facilitate the growth of the country’s aviation sector as well as the wider economy.
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CAAZ
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Primefuels
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Delivering Zimbabwe’s modern air services The Civil Aviation Authority of Zimbabwe (CAAZ) is working under new direction to meet Zimbabwe’s economic needs.
Fuelling growth Primefuels provide a much needed logistics service across East and Central Africa and has grown into a partner for major mining, aviation and O&G customers.
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Aerosud
Flying high With more than 3,000 Airbus A320 and around 4,000 Boeing 737 aircraft having come off the production lines fitted with parts manufactured by Aerosud, the South African brand has truly come of age
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Airbus A400M taxiing
erosud is the biggest manufacturer of aircraft parts and assemblies on the African continent, producing 1.5 million parts and assemblies a year and on the back of an established track record of quality and delivery it has become a single source supplier for almost all of the products it supplies. It is a fantastic success story, so much so that the company was declared a strategic industrial national asset by South Africa’s government owned Industrial Development Corporation (IDC).
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On the back of this success, the present time is one of unprecedented opportunity for further growth, says Dr Paul Potgieter, Executive chairman of Aerosud Holdings. “We decided that it is now time to reposition for the future, and we identified two main goals, the first of which was to upgrade our broad-based black economic empowerment (BBBEE) status. This is a company that is acutely aware that as a South African company we have to operate with compliance and be seen by the government as a responsible industrial
Aerosud
“Both Boeing and Airbus have ramped up production of their narrow body single aisle planes from 18 or 20 a month to numbers in the 40s”
partner.” The second goal was to position Aerosud Aviation strategically to achieve the capital investment needed to grow for further expansion, he explains. The result was that in June 2014 the business went through a comprehensive restructuring process. Having a history of involvement in the military side of aviation, Aerosud now found it had evolved into a major civil aviation supplier servicing contracts with Airbus, Boeing and tier 1 groups like USA based Spirit AeroSystems and the French
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An Aerosud employee on the assembly line
company Labinal. It made sense to unbundle these activities, so two standalone companies were formed. Aerosud Aviation remains as a wholly owned company of Aerosud Holdings, while Aerosud Aerospace Systems is now aligned to Aerosud Holdings’ shareholder, the military and security systems specialist Paramount Group. At the same time IDC confirmed its commitment to the industry by taking a 26 percent shareholding in Aerosud Holdings, strengthening this highly entrepreneurial private company strategically by aligning it with government industrial growth objectives. However IDC is also going to be a vital financial partner going forward, like a bank but more of a true partner than a commercial bank could ever be, as Johan Steyn, Managing Director of Aerosud Aviation, puts it. “In fact we have been working with IDC since 1996, but now they have an equity stake in the business and by doing that they have reconfirmed and extended their commitment to fund Aerosud going forward.” For IDC, he adds, there is a direct link between Aerosud as a company that exports close to 100 percent of its production and the government’s need to promote South Africa’s leadership in the production and beneficiation of titanium and other high tech minerals. Steyn has a state of the art manufacturing facility under his oversight, one that has for more than twelve years been accredited to AS 90100, the global aviation standard of excellence. It is constantly audited by his customers, though the onus of this has been reduced and duplication cut by the NADCAP
“We are seen by the aviation industry to be relevant, cost effective and competitive, and that can lead to new opportunities”
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Aerosud
Simulator at Aerosud’s training centre
conformity assessment scheme and lean principles, he believes. Did you know? that minimises duplicate audits “TOC is simply a stronger growth that added to everyone’s path than we believe we have workload, without adding value. achieved with lean.” $60 million Three or four years ago saw It is worth taking a closer Aerosud’s 2014 the introduction of theory of look at one particular product turnover constraints (TOC) concepts. range, track cans. These are “In the last 18 months we have highly specialised deep-drawn 14,500 started to roll out specific aluminium pressings. “Track cans Number of workshop level improvements on are banana-shaped cavities that Boeing and Airbus the back of TOC learnings,” says are let into the wing fuel tanks parts delivered Steyn. “It is about prioritisation to receive the leading edge monthly mechanisms and the principles of flap supports when these are managing flow improvements as retracted,” he explains. “So they opposed to capacity balancing are absolutely flight-critical. We - it is both an improvement initiative and a manufacture these for the A320 and A350 and pillar of the business going forward. We they are high volume in our terms - there are have upskilled ourselves to take that process 22 of them on each A320.” This component is forward.” It’s an example of choosing what currently manufactured in the USA on a press works for Aerosud, he adds, rather than do developed in cooperation with the supplier things as they have always been done in the there. The resulting 16-10-7BD Triform press industry, but there is no conflict between TOC has lowered part production costs by 25
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percent, scrap rates have been reduced to less than one percent, weld quality has been greatly improved and the overall appearance of the final parts has been significantly enhanced. During the course of 2015 that press will be brought to South Africa where it will be operated by specially trained staff. Aerosud is not struggling for work by any means - rather it is being dragged along by the booming aviation industry, says Dr Potgieter. “Both Boeing and Airbus have increased from producing 18 or 20 a month of their narrow
body single aisle planes to numbers in the 40s. Because we are a single source supplier for these aircraft that means we have more than doubled production volumes of the components.” That growth is continuing, he says. These OEMs are now talking of ramping up to 60 a month, and Aerosud will have to get ready for that, increasing capacity, capital equipment and floorspace as well as staff and training, just to service existing contracts. So far the company has been able to cope with the growth, but looking to the future,
“We have been too vertically integrated, by virtue of necessity because we do not have a broad support base in South Africa. Now is the time to start doing something about that.”
Aerosud employ a core team of experienced engineers and designers
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Aerosud
Aerosud has the largest CFRTP press system in the world with 600 ton capacity
plant expansion and rationalisation have to be tackled Potgieter emphasises. He uses the word co-location a lot. The production facilities need to be on the same site for all kinds of logistical and communication reasons, but Aerosud is running out of space in its existing facility, and crucially it cannot accommodate and support local suppliers and develop what he calls a sub-tier supply chain. For these reasons he (along with everyone in the aerospace industry) is keen to see the fruition of the long-awaited Centurion Aerospace Village on Aerosud’s doorstep. “We have been too vertically integrated, by virtue of necessity because we do not have a broad support base in South Africa. Now is the time to start doing something about that.” But if it is to spin out significant quantities of work to entrepreneurial new suppliers, Aerosud needs to be sure they are co-located.
Then, he says, they will receive the benefit of equipment sharing, training, quality, safety and production best practices. The sooner the Centurion Aerospace Village becomes a reality, the sooner this can happen. And of course this closely aligns with the government’s and IDC’s goal to promote the development and growth of a strong SME sector in South Africa. As a long-term strategic partner, IDC is in a position to help Aerosud achieve these goals, he says. Looking to future opportunities, this is a company with an amazing track record that the global aerospace industry can’t fail to have spotted. It won its Airbus contracts, both on the A400M programme and the A350 which between them account for 52 percent of this year’s turnover, without the benefit of offset leverage. “What that means is that we are seen by the aviation industry to be relevant, cost effective and competitive, and that can
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Thermoplastic part production
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Aerosud
“With CFRTP the forming cycle of a component is between four and six minutes, compared with eight to nine hours of autoclave curing for a conventional composite component” lead to new opportunities. I think the global industry is taking notice!” Airbus, Boeing, Labinal and Spirit are names to conjure with - but there are many other OEMs and Tier 1 suppliers that could be drawn in, he feels. Additionally, the national carrier SAA is in a process of fleet renewal, which will inevitably lead to increased volumes from Aerosud. There can be no complacency, no standing still in this rapidly advancing industry, he cautions. There will always be lower cost economies than South Africa and the long term sustainability of the company rests on its development of techniques that others can’t match. One way of staving off the threat from global competitors is to become a risk-sharing partner in OEM projects, as happened with the A400M project (it is worth pointing out that though the M identifies this as a military variant, the components supplied by Aerosud have nothing to do with its military capability or weaponry). The other is to create new IP around relevant technologies like the production processes it developed for continuous fibre reinforced thermoplastic (CFRTP) composites. This process allows much more energy- and cost-efficient manufacture than can be achieved with conventional composites, he points out. “For example, to illustrate just one of its significant advantages, with CFRTP the forming cycle of a component is between four and six minutes, compared with eight to nine hours of autoclave curing for a conventional composite component.”
It was a key moment this year when a new CFRTP press was commissioned, the biggest of its kind in the aerospace industry, developed by Aerosud and co-funded by Airbus. This facility will position Aerosud for the supply of large CFRTP parts and will undoubtedly add to the growth of the Aerosud manufacturing portfolio. Though make-to-print may be the order of the day for some time to come at Aerosud the emphasis is thus shifting to new technologies. Expect announcements in the coming months on advanced titanium manufacturing processes, he hints. It is easy to understand why aerospace industry loves titanium. Titanium parts are light, weigh only half as much as steel parts, but its strength is far greater than the strength of many alloy steels. Laser based additive manufacturing (LAM) is an effective way to process titanium alloys, potentially a lot cheaper than machining from solid, reduces waste dramatically, and could be a lot quicker too for the manufacture of complex aerospace parts. Meanwhile Boeing has announced the fourth renewal of its contract with Aerosud, Paul Potgieter says says. “Everybody talks about recurring business and this is it!”
Aerosud
+27 (0) 12 662 5000 info@aerosud.co.za www.aerosud.co.za
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Dr Paul Potgieter Chairman of Aerosud Aviation
Executive insight Have you always liked aeroplanes? ‘Fraid so! I don’t know where it came from, but for as long as I remember flying has always been a passion of mine.
What’s so special about Aerosud? I had the privilege of starting Aerosud as a one man company in 1990, albeit in the context of an agreement with my five other partners who would be following me later.
What do you consider your proudest achievement (in life or business)? The fact that, despite lots of pressure and stress, my sons in the end opted to join me in the business; so maybe I have gotten at least something right, and that gives me great joy.
If you could hit just one more goal in life, what would that be? That we should become an OEM in our own right, successfully manufacturing and supplying an aircraft of South African origin.
You’ve proved South Africa can compete at the top table – where next for manufacturing here? We have to move firmly beyond make-to-print, by adding value using our own Intellectual Property (IP), such as we are already doing for CFRTP parts. Next to come must be our emerging Laser Additive Manufacturing technology.
Which pieces of wisdom would you pass on to your successor? I believe the single most important trait in business is to be brutally honest with yourself. In responding to any problem, challenge or opportunity, believe what you need to, and not what you want to. Saying the same
thing differently – being in denial renders it impossible to finding a solution.
Nobody’s perfect. What quality or ability do you wish you had? Patience, patience, patience! And with that, the ability to better listen.
Name someone who has been an inspiration to you. The late Dr. Tom Hugo, our Chief Director at the National Institute for Aeronautics and Systems Technology of the CSIR during the 70’s, where I started my engineering career (and where we did the first helicopter project called the XH1, a tandem version of the Alouette III). If only I could rekindle half his wisdom and insight ....
What mistakes have you made (professional or otherwise), and what did you learn from them? Probably in getting the timing wrong – sometimes the idea is good, but the environment may not be ready for it. Comes back to impatience. But generally I have few if any regrets.
How has technology changed your working – and personal – life? Cell phones, computers, emails, internet, TV of course, communications and information more generally, all of which have contributed to a vast change in the pace at which we live and do things. But the most profound change has been in computing power and related applications. Could you imagine having been able to have done the Rooivalk helicopter using CATIA?
Learn more about Aerosud Aviation www.aerosud.co.za
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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 20
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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 Swaziland’s prosperity BE Transport & Logistics [ Issue 6 ]
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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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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 – 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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Executive insight
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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!� 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
“A lot of firefighting agencies in the world have fallen flat because they do not have a sufficient level of integration�
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 Kishugu’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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A flight path to the future Starlite Aviation Group A combination of its first-class track record and its proactive approach to future growth has seen Starlite Aviation Group position itself perfectly for the opportunities that East Africa will have to offer in the years ahead
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Starlite currently operates 11 Puma helicopters
ub-Saharan Africa is recognised as one of the world’s fastest growing regions and within it exists some of the continent’s fastest growing countries including Mozambique, Uganda, Tanzania and Kenya. It is in these countries that large gas and oil finds are helping to push annual growth rates above ten percent per annum, a trend expected to continue this decade. With such growth prevalent across the region it comes as no surprise to see both established and new businesses locally and
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internationally, flocking to the area in the hope of using their own unique skills to procure new clients and contracts. One such business is the Starlite Aviation Group. “In addition to the work we have been carrying out over the last year in Namibia on the west coast of the continent, we have been making positive strides towards taking on additional contracts along the east coast,” explains Commercial Director, Dimmie De Milander. “During December 2013 and January 2014, we had
Starlite Aviation Group
“During December 2013 and January 2014, we had three helicopters operating on two different contracts in Madagascar”
three helicopters operating on two different contracts in Madagascar. We now intend on continuing to leverage the positive work we are doing on behalf of the offshore industry and the utilities market across Africa’s more prosperous regions.” Established in South Africa in 1999, Starlite has experienced phenomenal growth to become a multi-faceted aviation business offering a range of helicopter services on a worldwide basis. Such services include relief contract work, oil and gas, passenger
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and cargo transport, helicopter sales and charter, maintenance and pilot training. De Milander has been with the group since August 2007 and in that time has become an expert at what drives business and growth in the African markets in which Starlite operates. “Without doubt, the success of numerous gas and oil campaigns off the coasts of Mozambique, Tanzania and Kenya have contributed significantly towards the economic expansion of the region,” he continues. “Virtually the entire east coast of Africa is fixed for long term growth, primarily due the higher quality of seismic data being collected
across the region, the oil and gas reserves that continue to be found, advances in deep water drilling and of course the presence of stable governments. Accordingly, we have made considerable efforts to follow this growth, by acquiring both our Air Service Licence and Aircraft Operating Certificate in Tanzania, and establishing a permanent base for our operations in Dar es Salaam in order to improve our services to existing and potential clients in the country. Furthermore, we have formed a strategic alliance in Kenya with a local fixed wing operator, a partnership that puts us in a strong position to expand here as well.”
“Our philosophy has always been that, regardless of race, culture or creed, we remain ever mindful of those in need”
A donation we made to Jodi Jackson dance academy
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Starlite Aviation Group
The Bell 412 reliably performs in the most extreme climates on the planet every day
There is no question that Starlite possesses the vast majority of the intangibles needed to prosper in East Africa. The group’s standard of operations is at the level it needs to be. Safety and quality standards, of paramount importance to Starlite, have been audited by regulatory bodies, and its helicopter fleet is comparable to any of its competitors. Nevertheless, a trend is emerging off the coasts of Mozambique, Tanzania and Kenya that up until now posed a challenge, and that is the fact that oil companies are being driven further out to sea to lay claim to vast deposits of oil and gas. This situation resulted in Starlite looking at expanding its fleet by investing in helicopters capable of travelling further offshore. It is closer to home, however, that one will find what De Milander refers to as the crown jewel of the group, that being its International Aviation Training Academy. Since 2003, Starlite Training operated from its base at Virginia Airport, ten kilometres
north of Durban, South Africa. In June 2011 the group relocated to what is now its primary training base in Mossel Bay, South Africa, on the Mossel Bay Air Field. The latter offers the perfect terrain and yearround good weather to provide future pilots with value-added training services. The Training Academy offers training for helicopter aircrew, maintenance personnel and operational support staff to a level of competence commensurate with leading military and aviation safety standards. “Today our Academy is responsible for training the vast majority of sub-equatorial African air forces and police divisions,” De Milander says. “The Academy has trained pilots from the South African Air Force, the Botswana Police Air Wing, the Kenyan Police, Army and Air Force pilots, and the Namibian Police, as well as 19 students from Transnet and many civilians. Furthermore, we are in the process of finalising talks with Tanzanian clients and entering into fresh discussions with our
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“While the success of the Training Academy is apparent, perhaps a less well publicised facet of the Starlite Group is its work with local communities and charities” partners in the UAE, whose Special Forces Pilots we have trained in the past. Needless to say, this area of the business is booming at present, and we put that down to the simple fact that we provide a consistently exceptional standard of training that is at the very least on par with any other provider globally.” He continues, saying: “The Training Academy expanded its training to include
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a Fixed Wing Division, upgraded its fleet to include the Robinson R66, purchased to provide single turbine conversions. Furthermore, it introduced the Guimbal Cabri G2, to the training fleet and was the launch customer for Africa, of this stylish, safe, technologically advanced and comfortable helicopter for Africa. Always one step ahead of the market, the Academy took delivery
Starlite Aviation Group
A view from the cockpit indicates the type of conditions Starlite operate in
of the JAR/EASA/SACAA approved Elite Evolution S723T FNPT II MCC simulator, based on the Eurocopter, AS-335 Twin Engine Helicopter. The fixed wing equivalent will be delivered in April 2014.” While the success of the Training Academy is apparent, perhaps a less well publicised facet of the Starlite Group is its work with local communities and charities. De Milander is personally involved in outreach programmes, having completed a 500 kilometre cycle challenge back in October 2013 in order to raise money for PATCH – The Centre for Abused Women and Children. He was also instrumental in Starlite’s monetary contribution to the Jodi Jackson School of Dance in Cape Town. Starlite plays an active role in the Reach for a Dream
Foundation, turning the dreams of flying, of terminally ill patients, into a reality. Starlite supports and gives monetary contributions to the ‘Toy Story’ fund, Agro Bio (Pty) Ltd, a fund providing farming equipment and infrastructure support to farming projects and the Seed of Hope feeding scheme. “Our philosophy has always been that, regardless of race, culture or creed, we remain ever mindful of those in need. If a community is seen to be struggling Starlite provides support and endeavours to do the very best to help,” De Milander enthuses. “The types of projects we have provided support to over the years have been extremely varied and have included supporting a foster care home in Durban, the development of young rugby players from poor backgrounds and
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Did you know? Starlite Aviation Group is a privately owned company made up of a select group of aviation experts. The Starlite fleet includes: PUMA SA 330 J PUMA Eurocopter EC120 Eurocopter EC130
Starlite Aviation will soon be operating three Bell 412’s on contract
“We are currently working tirelessly to secure multi-year contracts with clients working offshore in the oil and gas industry”
donating money for equipment and gear for a local ballet school. Each project is deemed important and we take great pride in supporting the communities in which we serve, as best we can.” Regarding Starlite’s business plans for 2014, the focus and strategy revolves around expanding operations to gain an even greater foothold in Africa’s more promising regions. Starlite recently purchased and was the launch customer of the new Airbus AS333 C1e.
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ROBINSON Robinson R22 Beta II Robinson R44 Raven I Robinson R44 Raven II Turbine Helicopter R66 BELL Bell 206B Jetranger Bell 407 Bell 212 Bell 412
The initial order of two of the aircraft has since been increased. This is part of Starlite Aviation’s fleet renewal and expansion program, with the rotorcraft joining an extensive helicopter fleet that currently includes twelve Airbus Helicopters SA330 Pumas. The AS332 C1e offers versatility across a full range of utility missions, especially in hotand-high environments, as well as missions requiring a small footprint while delivering a significant lift capability such as the vertical
Starlite Aviation Group
The SA 330 J PUMA on deck
replenishment of ships and other offshore and onshore work. Included in its standard equipment list is the four-axis autopilot and associated automatic flight control system from Airbus Helicopters’ EC225 Super Puma helicopter, which provides flight envelope protection, unrivalled precision, and stability in even the harshest operating conditions. If equipment or systems are required beyond the baseline definition, additional customisation can be provided by Airbus Helicopters and its wholly-owned Vector Aerospace Company, or the network of subsidiaries and approved partners. “We are currently working tirelessly to secure multi-year contracts with clients working offshore in the oil and gas industry, in regions in Africa, which is an achievable goal with our existing fleet of aircraft. De Milander concludes. “At the same time we are proactive in pre-planning in our area
of expertise in operations, by training our crew, technicians and maintenance staff on a new model of aircraft for the group, the AgustaWestland AW139. By providing training in the early stages, Starlite is ensuring that we create a situation where we have the finance available and manpower in place, for the purchase and operation of said aircraft. Furthermore, that will ensure that its integration into our fleet will be a rapid, efficient and smooth transition. This is just another example of how we are always looking to position ourselves perfectly for the next stage in our development.”
Starlite Aviation Group
+27 (0) 31 571 6600 dimmied@starliteaviation.com www.starliteaviation.com
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Comair
Flying through turbulence Comair Ltd continues to deliver operational excellence and consistent profitability in what can only be described as an economic headwind: its CEO Erik Venter explains how
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British Airways operated by Comair Boeing 737 800
ho would invest in an airline? The industry is facing a lot of challenges right now with escalating fuel prices, reduction in passenger volumes caused by the global recession and arguably the growth of technology that allows people to communicate and confer without the need to travel. These are things that affect airlines all over the world, but in South Africa life is even more challenging for a private sector airline operator that
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has to compete with the heavily subsidised national carrier South African Airways (SAA) and its low-cost brand Mango. The government, by taking a largely anti competition stance and allowing SAA to increase capacity in a shrinking market, has done no favours for the industry. Such is the environment in which Comair operates. Dating back to 1946 the JSE listed company has been successfully operating in southern Africa for nearly 70 years. Since
Comair
“We don’t have to go through major change management programmes every time we want to make an improvement!”
1991 it has been operating local and regional services under a licence agreement with British Airways, and in 2001 it launched South Africa’s first no frills airline kulula. com. Erik Rudolph Venter, a chartered accountant, joined the company 20 years ago and has been the Chief Executive Officer of Comair Ltd since 1 December 2011. He is a pragmatist, and entirely sees the point of the banks and investors who tell him they would never invest in the airline industry. “I
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ATNS
Air Traffic and Navigation Services (ATNS) State-Owned Company (SOC) In our 21 years of existence, we have seen the growth of the South African and global aviation industries. We have faced a myriad of challenges. And we have achieved notable and significant milestones along the way. Be that as it may, we have discovered the most innovative ways of delivering world-class safety and operational performance. ATNS is very concerned about the current aviation crisis resulting from the economic downturn, and how this could affect relations between ANSPs and airlines. Recognising the need to support the airline community in its efforts to reduce costs, we have since agreed to seek short-term initiatives, in close collaboration with our clients, including Comair. ATNS has also noted that airlines require reliable information, such as ATM and other ATM-related trends and developments. In this regard, ATNS is transparent at all times and offers proof of active cost and efficiency management to all its clients. ATNS regularly interacts with COMAIR on all relevant operational matters. The two organisations have worked closely on numerous projects, such the implementation of the RNAV (GNSS) procedures at the King
Shaka International Airport in Kwa-Zulu Natal. As is procedure, the regulator requested trials to be conducted before these procedures could be implemented. Following a well-defined programme of action (POA, this process was undertaken without a glitch. Still on procedures, Lanseria Airport Management has contracted ATNS to design instrument flight procedures for its new runway, which includes the Advanced RNP procedures. These procedures enable aircraft to access airport with terrain and airspace limitations. This is a first of its kind in Africa. Kulula - a low cost airline under Comair - is currently trialing the Advanced RNP and preliminary results indicate that these procedures will be approved for use at Lanseria Airport - in the last quarter of this year (2014). This is an exciting milestone for which Lanseria Airport management should be commended. In the main, the airline operators will benefit significant by using the advance RNP, in that it will reduce the operating costs, noise and CO2 emissions. Kulula.com operates daily flights from Lanseria International Airport to Cape Town, and Durban. ATNS continues to serve the ATM community by deploying leading technologies with foresight,
“ATNS regularly interacts with COMAIR on all relevant operational matters. The two organisations have worked closely on numerous projects�
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as well as on the continual improvement of safety levels. We have prioritized sustainable development by minimizing our own carbon footprint, and seek to continue developing and helping our stakeholders to minimize the environmental impact of their operations through flight efficiency programmes and other best practice initiatives. While our Vision is to be the preferred supplier of air traffic management solutions and associated services to the African Continent and selected international markets, our mission, that of providing a safe, expeditious and efficient air traffic management solutions and associated services, has been a building
block in our quest to capture the market share within the continental aviation sphere. To all our valued stakeholders, engagement and collaboration are deeply embedded in our quest to keep our skies safe. And that is through proper maintenance of sound relations with them. The effective maintenance of such carries with itself proper understanding of the “issues” that we are addressing. And that’s exactly what we’re doing with Comair. +27 11 607 1000 marketing@atns.co.za www.atns.co.za
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Comair ticketing staff
wouldn’t invest in a fund of airlines either!” So is he in the wrong job? Not a bit of it. Comair not only outperforms other airlines but a lot of other industries that are not seen as high risk. It has an astonishing record of declaring an operating profit in every one of its 68 years of existence, remarkable enough in itself but quite extraordinary in the South African climate of the last few years. So think again, investors, he says. Look at the company not the industry! The chief explanation he has for Comair’s success is its people. “We hold on to people for a very long time. Long service awards for ten years service or more are held by about 25 percent of our staff at any one time. There is a lot of experience here compared with our competitors in the market.” And the reason they stay is related to the flexibility and adaptability to change that is at the heart of the corporate culture. In the aviation industry more than most, he believes, it is essential to build that flexibility into people’s contracts and instil a continuous improvement mindset: “Everyone is used to the fact that things are always evolving, and we don’t have to go through major change management programmes every time we want to make an improvement!” People and the flexibility they bring to the company are probably the two main reasons Comair has dealt so well with the volatility of the airline market says Venter. The cost environment has imposed a harsh discipline on airlines and not all have been able to adapt. “Look at our 14 year history since 2001: costs have risen by about 168
“We hold on to people for a very long time. Long service awards for ten years service or more are held by about 25 percent of our staff at any one time”
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Comair
British Airways operated by Comair Boeing 737 800
percent against a consumer of products such as the Did you know? price index rise of around 98 prestigious Executive Club frequent flyer programme. percent in South Africa over Some years ago there were a the same period. At the same 68 number of similar franchise time the average air fare has Profitable years arrangements round the world, increased only by 37 percent, for Comair though now Comair is one of so we have had to close that only two airlines to remain in gap and that requires constant 26 the scheme. “It has been a very innovation and improvement.” Boeing planes successful arrangement both More efficient aircraft, better in its fleet for Comair and for BA in South route planning, working with air Africa – we are able to make traffic management to improve all the operational decisions landing patterns, saving weight and tailor the service to local requirements, on the aircraft – these are all strategies that while benefiting from the reputation of the have been adopted. top brand in the business.” Comair’s full service offering is flown In 2001 Comair added another brand, in the livery of British Airways (BA) under the low-cost, green-liveried kukula.com a licence agreement dating back to 1996. (slogan: Full-on Travel). Today most of the The British Airways brand brought with it popular domestic routes in South Africa are a rich heritage of stylish travel, reputation served by both carriers. The major routes for service excellence and a wide range
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are Johannesburg to Cape Town (the tenth busiest route in the world with 4.5 million passengers a year), Johannesburg to Durban, Durban to Cape Town and Johannesburg to Port Elizabeth. “After these,” says Venter, “the numbers get smaller, especially when we look at the various African destinations we serve, though some, like Harare, Mauritius and Victoria Falls are quite busy.” He is constantly looking for new opportunities. There is undoubtedly a lot of growth taking place within many economies
of sub-Saharan Africa, but it is growth from a low base, he warns, and even respectable percentages resolve into low volumes. “I don’t think Africa is quite there yet in terms of potential for passenger volume growth. A lot of hurdles remain to be overcome.” A cautious approach to expansion that will sustain the company’s profitability record. More immediate returns are being generated in cer tain aspec ts of diversification. Taking a travel business approach Comair is developing its revenue
“It has been a very successful arrangement both for Comair and for BA in South Africa”
Kulula Boeing 737-800 in flight
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Comair
Happy staff stading in front of the new airport ticket counters at OR Tambo International Airport
streams from car hire, hotel bookings and other value added services. “That segment of the business is starting to grow quite nicely. We have done a successful job of developing our airline lounges and we see possibilities in developing conference facilities and dedicated lounge facilities for other partners.” The company has also set up its own catering facilities at Johannesburg and Cape Town and is applying for licences to do third party catering for other airlines, he adds. “We are finding we can run a much more efficient catering operation than some of the legacy catering businesses were able to provide.” Another important revenue stream over the years has been third party pilot training. With simulator facilities for Boeing aircraft as well as ATR regional jets, Comair can offer
training at a much better rate than anything available in Europe or the USA. This is a service with potential for expansion. But Comair understands training. “We have to train almost everyone ab initio for Comair whether front line staff, finance staff, or cabin crew.” Extensive facilities at the Comair training centre next to O.R. Tambo International Airport provides the knowhow and instils the soft skills vital to the Comair culture. As with any airline Comair needs to keep its assets up to date, and this is the largest area for investment, with an ongoing programme to completely renew the 26 strong Boeing fleet, or at least the 18 that it owns rather than leases. Though it’s a big balance sheet item the replacement of Boeing 737-300s with the larger 800s resulted in a 15 percent increase in capacity that was a major factor
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Flight simulator at the Comair Training Centre (CTC)
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Comair
“We are finding we can run a much more efficient catering operation than some of the legacy catering businesses were able to provide”
in the 23 percent rise in revenue over the first half of the current financial year. Being more fuel efficient these aircraft also offset escalating fuel prices. Four new Boeing 737800s were introduced into the kulula fleet last year, and four more will be delivered by the end of 2015 followed by further orders by 2020, he says. Another important ongoing investment is in the migration to a new enterprise solution platform. Says Erik Venter: “We have implemented the Sabre airline solution system, which has already delivered benefits both in revenue and cost efficiency. The basic inventory hosting went live in July 2012, though that in itself does not deliver huge benefits. It’s the bolt-on modules that bring measurable efficiencies. We have been continually adding improvements and new functionality over the last 24 months and will continue to do that.” As with any ERP platform, there’s huge suite of upgrades and new products to choose from – Comair will avail itself of the most relevant functionality. These days TV and newspaper advertising are in rapid decline, with the rise of instant access to news and the ability to skip ads when watching programmes by satellite. Social media have stepped into the resulting space, and Comair is determined to make full use of the new platforms. “It’s essential to keep up to the minute with what is happening in that space especially in Africa with the reliance of so many people on mobile devices to stay in touch. It is a whole new way of thinking and requires a very different strategy. You get instant response from customers and
instant feedback compared with the old ways of communicating with customers.” It has meant getting social media addicts onto the marketing team, who understand the dynamics of the twittersphere: “People respond at 3.00 on a Sunday morning, and by 8.00 you have a trend growing across social media channels – if you are not alive 24/7 you will miss it!” As the last remaining independent privately owned domestic scheduled airline operator in South Africa Comair has a responsibility to its employees, customers and shareholders to secure a level playing field in what is after all an over-traded market, concludes Erik Venter. While in no way challenging the position of SAA nor arguing it should not be subsidised, he feels that it should share the risk as well as the rewards, and be subject to the same rules of competition that protect the industry in other jurisdictions. Things may change after the general election in May but even in the present climate the message is loud and clear – Comair is a great investment, as proved by its confident declaration of an interim dividend based on its results in the half year to December 2013 – resulting in a ten percent rise in its share price.
Comair
+27 (0) 11 921 0111 cr@comair.co.za www.comair.co.za
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Kenya Airports
Flying the fla
By focusing on greater efficiency, quality Kenya Airports Authority (KAA) is h country’s aviation sector as 64
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Authority (KAA)
ag for Kenya
y service and increased airport capacity, helping to facilitate the grown of the s well as the wider economy BE Transport & Logistics [ Issue 6 ]
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s first world economies seek new territories for innovation, trade expansion, conference tourism and investment, Kenya, as one of the leading vibrant stable economies in Africa, has provided a hugely viable and attractive option,” states Dominic Ngigi, Corporate Affairs Manager of Kenya Airports Authority (KAA). “This, coupled with numerous other factors, has helped contribute to the buoyant projections for the aviation industry in the country over the next 20 years, with global passenger traffic and air cargo each projected to grow by 5.0 percent per annum.” In the last year alone Kenya has played host to the initiation of several landmark projects, from the creation of Konza City, dubbed Africa’s first silicon valley, to the development of road, rail, port and airport infrastructure. Such advances have resulted in the entry of new airlines from what are referred to as “non-traditional destinations” looking to maximise on trade and tourism opportunities in the country. Furthermore, the discovery of oil in the region and the much anticipated LAMU to Southern Sudan project will also contribute to the growth of aviation in Kenya. Established through an act of parliament in 1991, KAA has since provided the country’s airports and airstrips with safe, reliable and efficient management. Today it boasts an
A
“Going forward passenger traffic is projected to grow by five percent, cargo eight percent and fleet movement three percent per annum”
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The artistic impression of JKIA and the look once complete
Kenya Airports Authority (KAA)
“The stability of the Kenyan economy has enabled KAA to post good operational results”
employee base of 1,820 individuals split across numerous departments including, projects and engineering services, marketing and business development, finance, legal, corporate planning and strategy, procurement and logistics, and operations, safety and security. “The stability of the Kenyan economy has enabled KAA to post good operational results,” Ngigi continues. “The economy improved by 4.6 percent in 2012 and is projected to have expanded by 5.7 percent in 2013, and by a further six percent in 2014 en-route to the ten percent envisaged by Kenya Vision 2030. In 2013 Kenya saw passenger numbers reach 8,919,254, cargo volumes hit 294,353 metric tonnes and aircraft movements numbering 269,923. Going forward passenger traffic is projected to grow by five percent, cargo eight percent and fleet movement three percent per annum.” With an increase is demand for aviation services comes the need to expand and in some cases modernise, and examples of this work can be found throughout KAA and across the various airports it manages. Perhaps the best examples of this work can be found occurring in and around Kenya’s main airport Jomo Kenyatta International (JKI). One of the biggest ongoing undertakings is the building of the brand new Terminal 4 structure, a project which commenced in September 2010 at a cost of $93 million, the scope of which includes the construction of
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Kenya Airports Authority (KAA)
Eng. Betty Kamunde briefs the JKIA project financiers on the status of the expansion
“In January of this year KAA signed a contract with M/s Roder of Germany to facilitate the construction of an interim domestic/international, arrival and departure terminal at JKI Airport�
a three storey passenger terminal building with floor area of approximately 21,000 square metres. Terminal Unit 4 is due for partial completion in July 2014, at which point passengers will begin to use the new building, with full completion expected by 31 March, 2015. Terminal 4 will also feature an International Arrivals facility, a permanent facility providing arrival processing functions that will effectively make Terminal 4 an independent terminal.
In January of this year KAA signed a contract with M/s Roder of Germany to facilitate the construction of an interim domestic/international, arrival and departure terminal at JKI Airport. The $23 million contract will cover the building of a facility which, at a size of 10,000 square metres, will service some 2.5 million passengers per annum. The terminal itself is expected to serve these passengers for a total of
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Weekly Because a month is a long time to wait... Your weekly digest of business news and views www.bus-ex.com 70
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Kenya Airports Authority (KAA)
Tradewinds Aviation Services Tradewinds Aviation Services is a reputable Ground Service Provider to airlines and airports in Kenya. With its initial operations at Jomo Kenyatta International Airport (JKIA), Tradewinds has increased its countrywide footprint to include Mombasa (MIA), Kisumu (KIA), Malindi (MYD) and Eldoret (EDL). Tradewinds is able to handle all types of aircraft ranging from light to AN225.The company comprises a highly qualified and experienced team which is flexible and quick to meet new challenges in the ever-changing market place. Tradewinds prides itself on providing world class ground handling services and aviation solutions, and has acquired affiliations with leading industry organizations like ASA, IATA, NBAA and has recently acquired ISAGO certification. Tradewinds is proud to be associated with Kenya Airports Authority as a stakeholder. www.tradewindskenya.com
five years, before then being converted for an alternative use. Equally integral to the expansion of JKI is the construction of the airport’s second runway. Measuring 5,500 metres in length the new runway will allow the airport to support direct flights to New York. Its conceptual design phase commenced in August 2012 and was completed in February 2013. Kenya Airports Authority is today awaiting confirmation of funding from the government in order to proceed. Elsewhere, JKI is also playing host to the renovation, modification and expansion of the ring building which encompasses Terminal Units 1, 2 and 3, as well as the airport’s arrival building. The rehabilitation is set to modernise and upgrade the current JKI terminals. This will include the demolition and reconstruction of the Arrivals Terminal building which was destroyed in a fire. The procurement process is currently underway, and the submission date for return of bids is 2 October, 2014.
A section of the new Terminal 4 now near completion
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Did you know? 8,919,254 Total number of air passengers recorded in Kenya in 2013 $93 million The cost of building JKI Airport’s brand new Terminal 4 structure
Proposed Re-design of Unit 1, 2, 3 including Terminal 4
1,820 Total number of employees split across various departments
“We find ourselves in the process of sourcing for strategic partners that will assist in the development of all manner of new structures and facilities” It isn’t just JKI that is reaping the rewards of expansion and modernisation however. Elsewhere within the country KAA is overseeing a number of ongoing projects. These include at MOI International Airport, where the designing phase is underway in preparation for the rehabilitation of the runway, taxiways and apron of the airport, as well as the upgrade of the power distribution system, work that is expected to commence in April 2015. At Kisumu International Airport work commenced in March 2012 to strengthen and
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widen the airport’s runway, cargo apron and car park, with completion expected in Issue 6, while at Malindi Airport work is almost complete on the construction of a brand new terminal building. “On a collective level we have also moved forward with the automation of our business processes, implementing the Enterprise Resource Planning (ERP) System and an Airport Operations Database (AODB) system within our airports,” Ngigi says. “The ERPsystem has integrated all data and processes of the organisation into a unified system to
Kenya Airports Authority (KAA)
3D model of the 20 Million Greenfield Passenger Terminal now under construction
ensure that KAA has accurate and real-time data and enhances a paperless system. The Airport Operational Database (AODB) on the other hand has facilitated the main airport processes, ensuring they are coordinated and synchronised and provides a centralised database for all airport stakeholders.” A similar universal development has also seen KAA introduce an Identity Management System across the check-in kiosks present at its various airports. “The implementation of this system has greatly enhanced security within all of our airports,” Ngigi enthuses. “The new system has an added UV thumbprint security feature, making it difficult to forge or duplicate. The system is networked to all airports, enabling security officers to share vital information.” Clearly always focused on the future, KAA has taken great efforts to develop many strategic partnerships designed to support business development within its
airports. “To date the types of project that we have achieved through strategic Public Private Partnerships, based on a Build Operate Transfer (BOT) agreement, include transit shed warehouses, food courts and airline hangers,” Ngigi concludes. “Now we find ourselves in the process of sourcing for strategic partners that will assist in the development of all manner of new structures and facilities, from duty free facilities and airport transit hotels to medical facilities, in-flight catering facilities, transit shed warehouses and fuel service stations.”
Kenya Airports Authority (KAA)
254-02-6611000 info@kaa.go.ke www.kaa.go.ke
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CA
Delivering Zimbabwe’s
The Civil Aviation Authority of Zimbabwe (C and is now working under new directio 74
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AAZ
modern air services
CAAZ) has passed through interesting times on to meet Zimbabwe’s economic needs BE Transport & Logistics [ Issue 6 ]
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CAAZ
AAZ was established on January 1, 1999 as the civil aviation agency of Zimbabwe. It took over the role of the then Department of Civil Aviation, a direct government entity, and it still operates under the control of the Ministry of Transport, but as an arm’s length statutory body, or parastatal organisation that works as a commercial organisation. The head office of CAAZ is at Harare International Airport, from where it has oversight of eight regional airports including two international sites. These are Joshua Mqabuko Nkomo Airport, located 20 kilometres east of the second largest city in Zimbabwe Bulawayo, and Victoria Falls Airport, which serves the tourists who come in their droves to visit what is arguably
C
regenerating. Its new terminal building, which is designed to handle 1.5 million arriving and departing passengers a year, was commissioned on the 22nd of December 2013 by the President of the Republic of Zimbabwe, Robert Mugabe. It is no secret that Zimbabwe’s economy is struggling to recover from a difficult period of high inflation and contracting investment. It is still not an easy environment for an organisation with a large and diverse remit to establish sound commercial practices while continuing to invest in new technology and infrastructure that is needed to keep the business and tourist sectors working smoothly. With this in mind, and to some acclaim from the public, in May 2014 the Transport minister Obert Mpofu appointed a new board
“As a regulatory authority, the board needs to ensure effective control and regulation of the operations of aircraft in and over Zimbabwe” Africa’s greatest natural attraction, Mosi-oaTunya. Victoria Falls Airport is at present open for just twelve hours a day. The existing runway is capable of handling aircraft up to B737 or A319 or equivalent, however, plans are underway to construct a new 4,000 metre runway that will allow larger aircraft to use the airport. This will mean that the Victoria Falls can be accessed directly by long haul flights from the Americas, Europe and Asia. The expansion of the airport will also include the construction of a new international terminal building and the current one will be converted into an exclusive domestic terminal. JM Nkomo Airport is the gateway to Zimbabwe’s main industrial city. Bulawayo, with its large manufacturing base, currently
to spearhead a revival of CAAZ. He tasked the new board with growing CAAZ to support the country’s five year plan for accelerated economic growth, known as the Zimbabwe Agenda for Sustainable Socio-Economic Transformation, or Zim Asset: October 2013 - December 2018. Zim Asset aims to “achieve sustainable development and social equity anchored on indigenisation, empowerment and employment creation, which will be largely propelled by the judicious exploitation of the country’s abundant human and natural resources.” The programme, which runs from 2013 up to 2018, has a results-based agenda built around four strategic clusters that it hopes will enable Zimbabwe to achieve economic growth and reposition the country as one of
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CAAZ
the strongest economies in the region and Africa – a position it undoubtedly has the potential to fill. The four strategic clusters are food security and nutrition; social services and poverty eradication; infrastructure and utilities; and value addition and beneficiation. Each one of these depends to some extent on good transportation infrastructure, which falls directly under the third category. However food security and bringing back into Zimbabwe more of the downstream value of its natural assets clearly require inward investment and industry development that cannot happen without efficient international airline services. Perhaps stating the obvious – though it had to be said – Mpofu stated: “As a regulatory authority, the board also needs to ensure effective control and regulation of the operations of aircraft in and over Zimbabwe, provide air navigation services including air traffic control in Zimbabwe airspace and any areas outside Zimbabwe for which the authority, pursuant to international arrangements, is responsible for providing such services.” The new board is also expected to spearhead the unbundling of CAAZ to create an airport operations company which will take effective charge of all aviation infrastructure. This will enable the organisation to focus on its regulatory activities in line with international practices, he said.
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“There’s no doubt that the world’s carriers would like nothing better than to see Zimbabwe become as efficient as South Africa”
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© Kounosu
admonitions seriously. In July it announced There’s no doubt that the world’s its intention to embark on an ambitious carriers would like nothing better than to plan to rehabilitate all the airports and see Zimbabwe become as efficient as, say, airstrips in its portfolio using South Africa and allow them to a public private partnership use Harare as a hub for their Did you know? (PPP) approach. The money sub-Saharan routes. The ninth that has already been spent at Route Development Forum for 40 Victoria Falls is part of a plan Africa, hosted in June this year Airlines attracted to upgrade Kariba, Buffalo by CAAZ, accordingly attracted to June summit Range and Joshua Nkomo no fewer than 40 airlines and at Victoria Falls airports. “We are rolling out more than 300 delegates. a plan which is systematic, The Strategy Summit was 1.5 million phased and planned,” said addressed by Minister Mpofu, Annual passenger CAAZ chief executive Mr David as well as Zimbabwe’s vicecapacity at Chawota. Putting tourism president Mrs JTR Mujuru and Bulawayo’s at the top of the agenda, two tourism ministers. new terminal he added that partnership The new board of CAAZ between tourism and the appears to be taking Mr Mpofu’s
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© Aldo Bidini
CAAZ
“From here on in, the strategy will be to bring in tourists via the major three airports at Harare, Bulawayo and Victoria Falls and then distribute that traffic to the rest of the airports” aviation sector was important in unlocking economic development. The penny that has finally dropped is that connectivity is a necessity in driving economic development and growth. A case in point, Masvingo airport has been earmarked for construction of a new terminal building and runway. The province is popular with tourists because of the Great Zimbabwe ruins, which are about 30 kilometres south of the city, however, accessibility to this attraction has been affected by poor access by air due to the size of its airport. From here on in, the
strategy will be to bring in tourists via the major three airports at Harare, Bulawayo and Victoria Falls and then distribute that traffic to the rest of the airports like Kariba, Masvingo and Buffalo Range.
CAAZ
+263 4 585095 info@caaz.co.zw www.caaz.co.zw
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Prime
fuelling
Primefuels has taken advantage of every logistics service across East and Central A to a partner for major mining 82
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efuels
growth
y opportunity to provide a much needed Africa and has grown in less than 20 years g, aviation and O&G customers BE Transport & Logistics [ Issue 6 ]
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t is good to have a company name that gives a hint to what that company actually does, and from that point of view Primefuels is very aptly named. It is a company, or rather a group of companies, that specialises in providing bulk liquid and dry cargo logistics and transportation services to its customers in East and Central Africa. Headquartered in Nairobi, the capital of Kenya, it is today present in nine countries in East and Central Africa, with a comprehensive regional network. In addition to 12 Operational Sites, it has offices and staff at 30 delivery locations in South Sudan, Uganda, Kenya, DRC, Rwanda, Burundi, Tanzania, Zambia, and Malawi. In addition to its logistics business, it also has business divisions focused on fuel supply, lubricants distribution and management, aviation services, and customs clearing. The needs in this part of Africa, which is principally served from the Indian Ocean ports of Mombasa in Kenya and Dar es Salaam in Tanzania, are very diverse, and Primefuels serves them all. From the NGOs that are active in many high stress countries or provinces to the fast growing oil and gas and mineral resources industries, manufacturing, defence, energy and infrastructure, each sector needs to work with a logistics partner that really understands its unique requirements. Primefuels’ highly trained and professional staff numbering more than 500 are known for more than just their efficiency in ensuring that commodities reach their destination: they
I
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deliver industry leading standards of safety, health and environmental performance. Primefuels owns a fleet of over 250 Long Haul trucks, and either owns or leases 430 dedicated rail wagons operating on the rail networks of Tanzania, Kenya and Uganda, but it was a different scale of operation when it started out in 1997 at Mombasa. Then there were just two employees engaged in moving palm oil and LPG by rail to Nairobi. Two years later the young company was awarded a contract to transport fuel to Geita gold mine by rail, shipping it to a depot in Mwanza from Dar es Salaam and Mombasa, and then by road to the mine. In 2001 the company was established enough to invest in its own road fleet, operating out of the Mwanza yard. The next ten years were a period of consolidation and expansion and by 2010 Primefuels had a base in Mombasa, one in Dar es Salaam,
Primefuels
“Each sector needs to work with a logistics partner that really understands its unique requirements�
and finally at Kampala, Uganda. Kampala is the gateway to the expanding minerals extraction business in Katanga, however the instability of the region is well known. In 2011 Primefuels was awarded a contract to move fuel to the the eastern DRC on behalf of MONUSCO the United Nations Stabilisation Mission in the Congo, which is a massive organisation with more than 22,000 uniformed personnel engaged in intervention and humanitarian duties. It also secured a deal with Randgold Resources to supply its Kibali gold mine in the northeast
of the DRC, approximately 560 kilometres northeast of the capital of the Orientale province, Kisangani. 2012 saw the opening of another yard in Kenya, at Nakuru and the commencement of road transport services linking the port city of Dar es Salaam with Zambia and Malawi. Last year Primefuels strengthened its rail transport services on these routes, and diversified into aviation fuel at Tanzania’s southern deep water port of Mtwara, which boasts an airport where medium size passenger and freight services link it to Dar es Salaam.
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“As a partner to mining operations owned by leading international companies Primefuels has had to acquire deep expertise� As a partner to mining operations owned by leading international companies Primefuels has had to acquire deep expertise not just in the reliability of fuel supplies but also in world class standards of safety and environmental best practice. It has become acknowledged within the region as a leader in HSE, and the company is certified to ISO14001, the standard governing environmental management systems. All of its vehicles are tracked and controlled by GPS systems and telematics ensure safe driving practices, monitoring
any infringement of permitted driving hours or excessive braking and acceleration. In the event of a breakdown, full backup plans are in place. The Geita gold mine in Tanzania is one of the largest mines in Africa, and Primefuels has been its transport partner bringing in fuel and lubricants from Mombasa and Dar es Salaam. At Kibali in the DRC, in addition of transportation of fuel from Kenya and Tanzania to the mine site, the company supplies and manages the entire lubricants requirement for
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the mine, with a team of dedicated and expert staff on site. To these important partnerships can be added the transport of mining reagents and consumables from Dar Es Salaam to the Australian company Paladin Energy’s Kayelekera uranium mine near Karonga in Malawi. At Barrick Gold’s Lumwana copper mine in Zambia is supplied by road and rail from Dar es Salaam. All these operations are of course familiar to readers of this magazine, and form the best possible testimonial for Primefuels’ services
The MONUSCO contract brought Primefuels into a whole new set of requirements – clearly defence is the most exacting environment for any logistics company. Through its regional network of depots and offices it transports fuel to eight different locations in the DRC under this contract. With a dedicated team of professional expatriate managers in each of the key offloading locations in DRC, Primefuels’ ability to load in both Kenya and Tanzania means that it can service even an agency of the UN with professionalism
“The plan is to leverage the company’s expertise and regulatory status to roll out aviation fuelling to mid-size and remote airports throughout the region”
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Primefuels
and reliability, despite the risks and difficulties presented in a tense political environment and the ever present threat of lawlessness and conflict. Primefuels continues to service its original sector, the palm oil industry with a dedicated fleet of IMO containers to ensures that the product is kept safe and free of contamination. As it has expanded though, it has taken advantage of each new opportunity as it is presented, and it is now ready and willing to take advantage of the rich hydrocarbon resources being explored along the East African coast – a situation that plays well to its established regional networks and proven levels of service. It has already begun to offer services to this market by setting up a dedicated helicopter fuelling operation in Mtwara. The fuel facility at Mtwara is now complete, and Jet-A1 fuel can be supplied direct to the
customer’s aircraft from Primefuels’ own dedicated storage and ground handling facility at the airport. The plan is to leverage the company’s expertise and regulatory status to roll out this service to mid-size and remote airports throughout the region, which have traditionally been under serviced by the large players in the aviation fuelling market. For the private airstrips commonly used at remote sites by mining companies for example, Primefuels can use its portable storage technology to set up a temporary aviation fuel supply for its customer.
Primefuels
+254 20 2228807 admin.nairobi@primefuels.com www.primefuels.com
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IT’S TIME TO FOCUS ON YOU
Commercial Publishing Services Introducing our new commercial publishing services team Would you like to have your very own corporate magazine or newsletter? We can help you with your publishing needs from CSR, Sustainability or annual investor reports to your employee or shareholder handbooks. Whatever you need, we would love to help
[ Click here to find out more ] or email [ mday@bus-ex.com ]