ISSUE No. 84 | www.bus-ex.com
WEEKLY EDITION Executive Insight: Danie Otto Intrapreneurship: Achieving sustainable competitive advantage
Eurostar Diamond Traders
Hard rocks One of the world’s leading diamond wholesalers and manufacturers
Mediterranean shipping company:
lucelec energy:
rainstorm dust control:
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contents 6
In brief
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Executive Insight
The week that was In this section youâ&#x20AC;&#x2122;ll find news, views and comments as we take a look back at the last seven days.
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Danie Otto â&#x20AC;&#x201C; Director, Digby Wells Environmental Danie Otto discusses his biggest achievements, learning from past mistakes and who inspires him professionally.
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Innovation
Intrapreneurship: Achieving sustainable competitive advantage
Smart companies develop and embrace intrapreneurship because they know that it can lead to business growth.
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EcoElectrica
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LUCELEC
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Mediterranean Shipping Company (MSC) South Africa
COver story
16 Eurostar Diamond Traders Hard rocks One of the world’s leading diamond wholesalers and diamond manufacturers, we spoke to its founder Kaushik K Mehta.
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Rainstorm Dust Control
Taking the professional approach The last 18 months has been an exciting time for the company and the next 18 could well be the best yet in its history.
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Power for the future EcoElectrica has established itself as one of the Caribbean’s lowest cost producers and a vital contributor to Puerto Rico’s growing energy mix.
Powering an island nation Saint Lucia Electricity Services Limited (LUCELEC) was established in 1964, which means that this year it is celebrating its 50th anniversary.
Shipping to and from South Africa Backed up its fleet of container vessels and multiple service divisions, MSC South Africa has been linking South Africa directly with the rest of the world since 1978.
Copper Mountain Mining Corporation
A mountain of potential Harnessing the vast resources of the Copper Mountain mine in order to become Canada’s newest mid-tier copper producer.
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Winners & losers
Ups and downs in the week that was... Hepatitis C sufferers A new treatment has “cured” 90% of patients with the infection in 12 weeks
Japan and Australia Have agreed a trade deal to lower tariffs on imports of key products
Glencore Xstrata Sells Las Bambas Mine to Chinese Consortium for $5.8 billion
Samsung Is forecasting a fall in profits for the second quarter in a row
Alcoa Reports a loss of $178 million for the first quarter of 2014
China Import and exports both fall in March, fuelling speculation over an economic slump
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Iron ore producers The value springboards to a six week high
House of Fraser Taken over by a subsidiary of Chinese conglomerate Sanpower worth £480m
Titan Aerospace The drone startup that makes high-flying robots has been acquired by Google
Takeda Pharmaceutical To pay $6 billion in damages, over claims it was hiding cancer risks associated with diabetes drug Actos
Toyota Recalls 6.5 million cars because airbags may fail, seats could move and steering columns might break
JP Morgan Has reported a sharp fall in profits at the start of 2014, which it blamed on declines in its mortgage business
in brief
Joe Seer / Shutterstock.com
Technology
Google Glass goes on sale for one day only Google will open sales of its wearable computer technology on April 15 to adults residing in the United States Having spent three years miniaturising its invention and trialling it among the developer and ‘Explorer’ community Google is ready to launch Glass on the public, hoping to create positive feedback and stimulate demand. The voice and touch activated miniature computer, worn on a spectacles frame with a miniature optical display, can shoot film and video, and give handsfree access to the internet. Glass is mounted on a pair of compatible spectacles and the small screen sits above the wearer’s right eye. The wearer can simply look up to see things like directions, notifications and content from custom Glass apps on the screen. Many technology experts believe wearable computers such as Google Glass will be the next big market for consumer devices, and could replicate the evolution of smartphones
from personal computers. On Tuesday a limited stock of the devices will be available for general sale in the USA at a price of $1,500, and however many are available it is expected they will quickly disappear. Fears about privacy are being taken seriously by Google, which has issued guidelines to its Explorer community saying: “Breaking the rules or being rude will not get businesses excited about Glass and will ruin it for other Explorers.” Glass evangelists hoping that the technology confers on them greater licence to record whatever is in eyeshot will have no luck getting the company to back them up on that claim. Google founder Sergey Brin has said that Glass is a step toward his original vision, to make available the information a user needs without having to initiate a search. He believes the freedom to take pictures or deal with messages without having to fiddle with a device will be liberating – now that vision will be tested by a larger number of more impartial users, for whom the opportunity will be spiced by the offer of free frames or sunglasses on this occasion only.
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Mining
One of the largest mining purchases in Chinese history on the verge of completion China relies massively on copper, which is used in electronic production, and the Las Bambas mine is expected to produce more than 450,000 tonnes of the metal per year in its first five years.
Ivan Glasenberg, Glencore’s chief executive, said in a statement: “Since we acquired Xstrata... our team has taken decisive steps to de-risk Las Bambas, which has culminated
in this compelling offer from the consortium. Our willingness to sell reflects the level of the offer and our conviction that we can utilise the sale proceeds to c r e a te a d d i ti o n a l shareholder value.” Analysts expect Glencore to use the proceeds from the sale to reduce its debt. G le n core a n d Xstrata merged in May last year with China giving approval to the merge after the formed agreed to sell its stake in Xstrata’s copper mining project in Peru to a buyer approved by Chinese authorities. The mining giant also agreed to supply a minimum volume of copper concentrate to China for a period of eight years.
technology
3D printing moves a step closer to mass market availability Makers M3D reached its $400,000 target in just eleven minutes of the device appearing on the crowd funding website. Early backers of the machine will be able to get one for just $199, while other backers can pledge as little as $299. Dubbed Micro, it comes with easy-to-use software that allows users to search, drag and drop objects to print. At just 7.3in square and weighing just one kilogram the device will be easy to move around, and can be used with Windows, Mac or Linux.
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“It’s our goal to make the Micro accessible to everyday users,” reads the pitch on Kickstarter. The tagline on its Kickstarter page calls it “the first truly consumer 3D printer”. There are certainly those out there that see the device as being a potential game changer. “Along with the market entry of New Kinpo I think it’s one of the most interesting things to happen in desktop 3D printing,” said expert Joris Peels. “New price points and lower pricing will be key in getting people to buy a 3D printer. Not many people can afford to pay $2,000 for a printer but many more can try one for $500 or $300.” M3D hope to be able to start shipping the machines in August of this year.
in brief
Best from the web this week
We’ve done the searching, so you don’t have to! ted talks
Why giving away our wealth has been the most satisfying thing we’ve done
Bill and Melinda Gates In 1993, Bill and Melinda Gates took a walk on the beach and made a big decision: to give their Microsoft wealth back to society. In conversation with Chris Anderson, the couple talks about their work at the Bill & Melinda Gates Foundation, as well as their marriage, their children, their failures and the satisfaction of giving most of their money away. Watch it now
Business insider
France Didn’t Actually Ban Work Email After 6pm — But What Did Happen Is Still Really Funny Read the rest
The Difference Between Successful And Very Successful People Read the rest
Fast company
A Broken Place: The Spectacular Failure Of The Startup That Was Going To Change The World Read the rest
inc
Between Venus and Mars: 7 Traits of True Leaders
By Leigh Buchanan @Leighebuchanan Control is a mirage. The most effective leaders right now--men and women--are those who embrace traits once considered feminine: Empathy. Vulnerability. Humility. Inclusiveness. Generosity. Balance. Patience. Read the rest
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Danie Otto Director, Digby Wells Environmental
Executive insight
Nobody’s perfect. What quality or ability do you wish you had?
Who or what do you think is overrated?
“Being able to predict the future more accurately.”
“The Prius hybrid car. Many other vehicles give better fuel consumption at efficiencies and power ratios significantly better than this car.”
What is the best business book you have ever read, and why? “Mind of a Fox, by Clem Sunter and Chantell Illbury. Through scenario planning they predicted the 9/11 disaster. The book talks about enabling one to have vision to the point where one can predict specific future events.”
Someone you would most like to have met, living or dead, and why? “Sir Richard Branson, in order to to learn from his entrepreneurial skill and ability. Also to learn from and discuss his vision to expand the Kruger National Park through ecological rehabilitation at his nature reserve, Ulusaba.”
What do you consider to be your major achievement (in life or business)? “Being able to assist with major environmental projects as mediator for the environment for 20 years, without being in the spotlight. It’s like a soccer or rugby match, the game is not about the referee. If people talk about the game and not the referee, he has done his job well.”
What mistakes have you made (professional or otherwise), and what did you learn from them? “The opening and closing of various regional offices, from which I have learned to better read the market, keep overheads low, and stay flexible and mobile.”
Which one piece of wisdom would you pass on to your successor? “To mentor and train people not to take over from you but to overtake you.”
Who has been your inspiration professionally? “Dr Niels Jacobson, the retired parks board ecologist who I have had, and still have, the opportunity to work with and learn from. His immense knowledge and hunger to learn that never diminishes even after retirement, together with thorough systematic and scientific methods, has been a constant source of inspiration.”
How would you like to be remembered after your retirement? “As a mentor, not only on a professional level promoting biogeomorphology and ecological restoration, but on a life skills level as well.”
Do you have a quote or motto you live (or work) by? “My motto is to work hard, play hard and follow your passion.”
Learn more about Digby Wells Environmental www.digbywells.com
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Intrapreneurship: Achieving sustainable competitive advantage Smart companies develop and embrace intrapreneurship because they know that it can lead to business growth and provide the means to achieve sustainable competitive advantage Words by
Mike Sotirakos
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hat is intrapreneurship? Zahra, (Journal of Business Venturing, 1991), defined intrapreneurship as the process of creating new business within established firms to improve organisational profitability and enhance a company’s competitive position or the strategic renewal of existing business. Employees are usually given the opportunity to work on projects where they can use their entrepreneurial skills to develop new products or services that become profitable ventures for the company. Unlike entrepreneurs, however, they don’t incur the risks associated with these projects, but neither do they gain the huge financial rewards if their new product or service is a blockbuster. One question that is often put to me is; “Isn’t an entrepreneur and an intrapreneur one and the same?” There are certainly some similarities although the former usually relates to the creation of a new venture externally, outside an existing organisation. Indeed, many successful businesses started life as entrepreneurial start-ups that later became mature organisations. The last 100 years have seen significant levels of innovation, yet the demand for greater levels in business has never been more intense than it is today. There are many reasons why, not the least of which are maturing industries and products, increased levels of competition, changing consumer needs, political and environmental pressures
“the demand for greater levels of innovation in business has never been more intense than it is today”
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and a rapidly changing global marketplace. However, in many organisations innovation has become something of a paradox. Everyone knows that it’s probably essential for survival but it can be regarded as time-consuming and expensive, it diverts the company away from its core business and comes with a strong downside of failure. It seems more important to remain rigidly blinkered but still moving forward – irrespective of how slow – rather than adopting a more open view and adjusting tack to take advantage of better conditions that are likely to prevail in the future. There is also a belief that corporate intrapreneurial activity has a higher failure rate than that of external entrepreneurs. But what is the evidence that intrapreneurial startups are less successful? It has been suggested that corporate venturing is less successful because insufficient time, commitment and money are invested in innovative activities. Furthermore, because intrapreneurs operate within the structural and procedural constraints of an established organisation, they lack the innovative freedom that the entrepreneur enjoys. What entrepreneurs don’t benefit from is the financial, administrative and operational support that is provided to intrapreneurs. However, much of the evidence is empirical and, given the large number of variables and basic lack of available data, unreliable. Nevertheless, where deeply entrenched beliefs and practices – many of which run counter to innovation and creativity – exist within the organisation’s culture, then corporate venturing is unlikely to get off the ground. Doing nothing is often a bigger risk than doing something that could potentially be beneficial, and intrapreneurship is as much about change management as it is about innovation. If business leaders are willing to
innovation
repudiate outdated notions and unworkable management practices, possibly forego short-term gains, accept (and factor in) that failure could potentially be an outcome, and openly demonstrate a higher degree of trust, confidence and respect in their workforce, job satisfaction will increase substantially and prosperity for all will follow. You only need to look at companies such as Panasonic, Toyota, 3M, Facebook, Google and many others to see the evidence of this. Even though there are some similarities between intrapreneurial and entrepreneurial behaviour, there are some importance differences that business leaders need to be aware of. One very notable difference is that entrepreneurs are more self-centered than intrapreneurs, they are willing to take much greater risks, and the significant “adrenalin high” they get when working on specific projects plays a key role in their motivation. This is not to say that intrapreneurs are risk averse, but key motivators need to be carefully aligned for these internal innovators. Financial rewards such as success bonuses are important, but often more important to them is peer recognition and being placed in the corporate limelight. Whilst entrepreneurs operate within a structure that has few boundaries, intrapreneurs live in an environment of constraints, brought about largely through corporate policies and management practices. For intrapreneurship to succeed, management must ensure that innovation is woven into the very fabric of their organisation and given a prominent place in job descriptions, procedures and performance evaluations. Intrapreneurs need some degree of autonomy but have very clear guidelines within which they can operate. Effective managers are those who know when to pull on the reins without creating disillusionment, and when to let them go to maintain optimism.
“Intrapreneurs need some degree of autonomy but have very clear guidelines within which they can operate”
Established companies have the advantage of an existing resources base – such as design, marketing, sales and finance – that entrepreneurs don’t have. However, if they remain scarce or intrapreneurs have to fight their corner every time they require these resources, innovative projects will never get beyond the drawing board. Once the decision is made to run with a specific project, management must ensure that the resources required to achieve a successful outcome are made fully available. The digital era is beginning to provide enormous opportunities for companies to reap the benefits of innovation and creativity. Explosive wealth creation will only materialise, however, once business leaders have understood how to identify, nurture and manage the intrapreneurial spirit within their organisations.
About the author
Michail Sotirakos After 11 years in academia he branched out into business and has successfully launched a number of companies. He is the CEO of Watershed Entrepreneurs and, as a business modeling expert, also works with companies in the development of their intrapreneurial programmes. www.watershedentrepreneurs.co.uk
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Hard Rocks Eurostar Diamond Traders One of the worldâ&#x20AC;&#x2122;s leading diamond wholesalers and diamond manufacturers, a passionate and principled family business that has made a serious impression on the world market: we spoke to its founder Kaushik K Mehta words by
John Oâ&#x20AC;&#x2122;Hanlon
research by
Jeff Abbott
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iamond and adamant are two words coming from a common Greek root meaning unalterable, an appropriate name for the hardest substance in the natural world. It’s their resistance, their durability, that has made them the ultimate jewel. Rough diamonds as mined are unprepossessing, but once they have been cut and polished to refract light from a myriad facets their beauty is breathtaking. But cutting and polishing is no easy matter as the only substance hard enough to impress diamond is – more diamond. Cutting is performed by highly trained craftsmen with years of experience, since it is a very technical process that involves assessing the qualities and structure of each stone. Polishing is a laborious and time consuming task that also needs special training. For centuries India has been the undisputed centre of the world diamond trade and until recently more than 90 percent of diamonds were cut and polished there. And India is where Eurostar has its origin. “Both my father and my grandfather were in the diamond business,” says Kaushik Mehta, who co-founded the company at Antwerp, Belgium, in 1978 and is today its Chariman and CEO. Mehta began his career in 1966 in Tamil Nadu India, where he simultaneously managed a jewellery retail store and a small diamond cutting and polishing plant at Coimbatore. “So the diamond trade is a family enterprise and our family never knew any other business!” Though India remains the home of the industry, by the 1970s the home market
D
“The diamond trade is a family enterprise and our family never knew any other business!”
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Polishing the pavilion facets
Eurostar Diamond Traders
“Since Antwerp is really the rough diamond trading centre of the world I came there to buy rough diamonds to ship them to my company in India to be cut and polished there”
started to move from cutting and polishing to consumption – today India is the third largest consumer of gemstone diamonds after the USA and China, he says. “Since Antwerp is really the rough diamond trading centre of the world I came there to buy rough diamonds to ship them to my company in India to be cut and polished there.” At that time he started to differentiate his business by buying the best quality rough diamonds, cutting and polishing them in Belgium, and then supplying them to the retail trade in India. He must have got a lot of things right. The company grew exponentially. In 1994 the company established its main diamond cutting and polishing centre in China, where it now operates from three locations. In 2001, Eurostar completed the acquisition of a significant stake in The Hearts on Fire Company, making it the leading producer of Hearts & Arrows diamonds, a cut unmatched in precision, beauty and perfection, offering edge-to-edge ‘electric’ brilliance with white and coloured highlights, even in low light conditions. “The Eurostar Hearts & Arrows diamond is a brilliantly beautiful, ideal-cut diamond that exhibits a distinctive, perfectly symmetrical pattern in the table,” he stresses. “The secret is perfect facet alignment along all of the diamond’s angles so that
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“The secret is perfect facet alignment along all of the diamond’s angles so that each stone refracts light to the maximum” each stone refracts light to the maximum,” he adds. To achieve this Eurostar gemmologists are trained in the use the most sophisticated testing equipment such as refractometers, spectroscopes and microscopes to identify and analyse the stones. They evaluate precious stones with confidence and prepare
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special identification and appraisal reports and have all been trained either at HRD Antwerp, the largest diamond laboratory in the world which adheres to the rules set by the International Diamond Council for grading polished diamonds, or the prestigious GIA, the leading source of knowledge, standards, and
Eurostar Diamond Traders
Every Eurostar diamond undergoes 32 meticulous quality checks before reaching your doorstep
education in gems and jewellery founded in New York in the 1930s. In 1981 he acquired a factory in Belgium employing 135 people: just over ten years later, in 2002, Eurostar’s annual turnover exceeded $1 billion for the first time. In the same year Eurostar Diamond Traders Shanghai was founded and the company, already a De Beers Sightholder (a company licensed by De Beers’ subsidiary Diamond Trading Company (DTC) to purchase rough diamonds from the world’s largest diamond mining company) was awarded a second DTC Sight in Botswana. More recently, in 2010, the group has established both Eurostar Diamond Traders Hong Kong Ltd. and Eurostar Diamonds India Pvt Ltd, the
latter run by Paresh Mehta, brother of Kaushik. Today Eurostar employs 5,000 skilled people in China, India and Belgium. 2013 was a difficult trading year in the diamond industry – unsurprisingly in light of the global recession which was not kind to luxury goods. 2014 is already promising to be a better proposition, he predicts, with demand rallying. The downstream industry is demonstrating demand from non-traditional sources, well outside the jewellery trade for example the Rolls-Royce car shown in Dubai last year with no fewer than 446 diamonds hand-set into the door panels, centre console and cabin privacy partition. The pinch point in the value chain will
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â&#x20AC;&#x153;Seven or eight mining companies mine and sell rough diamonds: maybe a thousand manufacturers compete to buy them and polish themâ&#x20AC;?
Kaushik K. Mehta Founder
Sawing quality control
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From the very first moment when I founded Eurostar Diamond Traders in 1978, we have applied passion to everything we do. A passion for excellence, a passion for innovation, a passion for purity, a passion for servicing our clients, and above all, a passion for the p e r fe c t dia mon d masterpiece.
Eurostar Diamond Traders
Sorting diamonds
continue to be on the supply side. “The problem is we have got seven or eight mining companies mining and selling rough diamonds, and maybe a thousand manufacturers all competing to buy them and polish them.” Around 50 percent of the diamonds his company buys come from DTC, the remainder from a variety of open market sources, he adds. “We procure a lot of these goods from Russia and a growing quantity from Angola.” Cutting and polishing, beneficiation in other words, is the core business of Eurostar Diamond Traders, and will remain so. With the truly unique skills base it has built up over decades the company is unlikely to reduce its cutting and polishing capabilities. However Kaushik Mehta’s eyes are now fixed on the consumer. It has always retained teams made up of highly experience professionals whose job it is to remain in direct contact with
its key retailers in the important sales and marketing centres it has established in places like China and the USA. However he now wants to expand the company’s presence at the sharp end. “One of my visions is to go downstream more in to the retail business. We have a retail company in Chennai and about ten stores right across South India – and we are looking to expand those stores.” With a presence in nine Indian cities he wants to target the main centres of population in India, he says.
Eurostar Diamond Traders
+32 (0)3 213 77 77 info@eurostardiamond.com www.eurostardiamond.com
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Rainstorm D
Taking the profes
The last 18 months has been an exciting time for Rainst manager, Mason Trouchet explains, the next 18 could w words by
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Will Daynes
research
Dust Control
ssional approach
torm Dust Control and, as technical sales and marketing well be the best yet in the companyâ&#x20AC;&#x2122;s 30 plus year history
research by
James Boyle BE Weekly [ Issue 84 ]
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Rainstorm bucket at Jandakot
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Rainstorm Dust Control
think it’s safe to say that business has changed dramatically over the last 18 months,” states Rainstorm Dust Control’s technical sales and marketing manager, Mason Trouchet, when I ask him what life has been like for the Australian company since we last featured them in September 2012. Headquartered in Maddington, the company, as you may have already gathered, specialises in dust control. Since 1983, Rainstorm has successfully developed and fine-tuned a suite of products designed to stop the large volume of dust created during the various stages of a mining operation from becoming airborne. Whether used on roads, stockpiles, railways, plants or warehouses, its locally-manufactured dust suppression
“
I
a half have also come as a result of greater use of connotative data and technologies that are able to quantify the performance of dust suppression products against costs. This has resulted in businesses looking at dust control from a business case point of view, something that was less prevalent in years gone by. “Dust control covers a number of areas, including roads, transportation, open areas and materials handling,” Trouchet explains. “What the large mining companies are realising now is that there is little point in tackling just one of these areas independently, after all dust you pick off the roads will ultimately just land on open areas and vice versa. So what they are doing now is identifying who can provide
“The change in business has come as a result of a number of factors, not least of all the mining booms experienced in key markets” products have proven time and again to increase efficiency, reduce hazards and make processes simpler, cleaner and safer. “The change in business has come as a result of a number of factors, not least of all the mining booms experienced in key markets including Australia, Colombia, Mongolia and South America, which have resulted in increases in production and thus increases in dust generation,” Trouchet continues. “Meanwhile, attitudes towards environmental responsibility and water conservation have only grown stronger, with the mining community acknowledging that it can’t simply bulldoze through villages and areas and leave them choking on dust.” Changes within the company and the industry as a whole, over the last year and
a package service that deals with all the aforementioned areas where dust generates and who can do so at the best cost.” Roads remain the biggest area of interest when it comes to dust control, with studies highlighting that more than 50 percent of all dust generated within a specific project originates from roads and vehicle traffic movements. “Vehicle traffic volumes, particularly in the form of trucks increase during boom periods,” Trouchet points out. “What this means is we have to look at ways to keep the roads pliable, making them moulded rather than stiff and rigid. With increases in road usage customers are also looking for dust control products that are much more performance orientated than ever before. This means applying a solution
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“Recent studies have cast light on the loss of product and amount of dust generated from the use of rail cars by the coal and iron ore sectors”
that stays effective for a matter of months rather than days or weeks.” The other two main issues of importance come in the form of open areas and materials handling. In the former Rainstorm carries out what it calls veneering, where it sprays
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a thin coat of solution over stockpiles and open areas. “This process of veneering has been practised for many years, however the interesting development to emerge from this has been the idea of rail car veneering,” Trouchet says. “Recent studies
Rainstorm Dust Control
Gluon treated (left) and untreated (right) stockpile
have cast light on the loss of product and amount of dust generated from the use of rail cars by the coal and iron ore sectors, a loss that more often than not exceeds the cost of veneering itself. What we have taken to doing in response is start to veneer the rail cars themselves, thus creating a whole new business positive example of how our technology can not only save our customers cost but also create environmental benefits for the wider community.” When it comes to the materials handling chain, the biggest topic in recent times for the company has been the issue of dust extension moisture, where moisture is
mixed into an ore body to counteract its dusty nature. What Rainstorm has found is that in many instances companies have been using large amounts of water to get the correct moisture content, an action that in itself can cause problems that direct impact upon the productivity of plants, crushing circuits or throughputs. “By adding certain additives into that water stream to make the material in question less dusty with lower moisture content we also found that we were seeing improvements in throughput and flow, and this in turn was improving things in terms of money gain,” Trouchet enthuses. “So where
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Did you know? The three strengths of Rainstorm 1. We only use environmentally friendly products.
Untreated ore - a bad dust day
“We are reaching the point where what we have been preaching for the better part of 30 years is now being qualified”
we were trying to manage dust in the first instance, that was just a cost plus, but the impact we were having on input and flow meant that our customers could in turn increase the capacity of their plants and that has a direct dollar relationship, which meant that these materials created a cost benefit that they didn’t foresee in the first instance.” The fundamental task of dust control is one that in itself carries environmental benefits, however as Trouchet goes on
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2. We consider the client’s total end cost, and ensure that we, not the customer bear the onus for a successful outcome to the customer’s satisfaction. We provide total solutions. Rainstorm has always chosen to provide all equipment and application services along with the best products so can gladly shoulder the onus for making things work. In other words, we don’t blame the customer for “not putting it out right”. 3. We are continuously striving to improve equipment, methods, products and training.
to tell me, Rainstorm possesses a much more comprehensive attitude towards responsibility and sustainability than just that. “We have always taken a view towards looking at how we can take the by-products or waste materials of other industries and utilise them as a way of supressing dust.” While boom periods in mining are a blessing to all involved in the industry, it is important to remember that the issue of dust control is constant. Inevitably this means
Rainstorm Dust Control
Veneering in process
that regardless of market conditions there will always be a demand for the services that Rainstorm provides. Even with that in mind the company still faces a need to evolve and adapt to changes in the marketplace, something that Trouchet appears well aware of. “When it comes to taking the company forward there are several on-going changes that will determine how we grow and develop. The first is the way our customers are increasingly putting their site-wide dust control contracts out to tender. This is a big shift in approach and is one being seen mostly amongst the larger players in the market. Winning these long-term contracts is of great importance as they allow us to embed our crews and equipment with these customers, and service their needs for extended periods of time.” The other big change is coming from the development of various technologies that are able to provide detailed breakdowns of where
surfaces are being treated, how much product is being used and what the cost benefits of that usage are. “In the case of road treatment, the use of 2D and 3D models is giving us a better detailed cost and performance per square metre overview than ever before,” Trouchet concludes. “This gives us clear data that we can present to potential customers that has been shown to encourage their uptake of our products and services. This is very exciting for us because it essentially means that we are reaching the point where what we have been preaching for the better part of 30 years is now being qualified.”
Rainstorm Dust Control
08 9452 0235 info@rainstorm.com.au www.rainstorm.com.au
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A mountain of potential Copper Mountain Mining Corporation Copper Mountain Mining Corporation is harnessing the vast resources of the Copper Mountain mine in order to become Canadaâ&#x20AC;&#x2122;s newest mid-tier copper producer words by
Will Daynes
research by
Jeff Abbott
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Ore hauling trucks in a row
Canadian based, high growth mining company, Copper Mountain Mining Corporation’s focus is directed towards adding value through a combination of successful exploration, project development, efficient operations, and opportunistic acquisitions. Furthermore, the maintaining of a low risk profile through project diversification, astute financial management and operating in secure jurisdictions are key priorities for Copper Mountain’s Management team. The company’s flagship asset is the 75
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percent owned Copper Mountain mine, in which Mitsubishi Materials Corporation owns the remaining 25 percent as part of a strategic alliance between the two parties. Located close to the town of Princeton in southern British Columbia, the mine exists within an area blessed with well-developed infrastructure. This has made the property easily accessible via a combination of highways and paved roads. The mine also falls within close proximity to the port of Vancouver, which provides service for the shipment of
Copper Mountain Mining Corporation
â&#x20AC;&#x153;The Copper Mountain mine commenced production during the summer of 2011 and has since gone on to expand its operations in rapid fashionâ&#x20AC;?
copper concentrates, and is also little more than a 20 minute drive away from several local communities that provide goods, services and personnel. The Copper Mountain mine commenced production during the summer of 2011 and has since gone on to expand its operations in rapid fashion. The site encompasses some 18,000 acres and boasts a resource of approximately five billion pounds of copper and remains open laterally and at depth. Needless to say then, that the Copper Mountain mine
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Copper Mountain Mining Corporation
possesses significant exploration potential that the company plans to explore over the coming years. The development concept behind the mine is a fairly straightforward one. The company is essentially combining three existing open pits into what will ultimately become one larger super pit. Across the mine site the company is utilising a brand new mobile mining fleet that consists of two Komatsu PC 8000 hydraulic shovels, thirteen 240 ton Komatsu 830E haul trucks, one Komatsu WA 1200 loader, two PV271 Atlas Copco rotary drills, one PV351 Atlas Copco rotary drill, and a fleet of support equipment. In addition, the mine has possesses an Ex 5500 Hitachi hydraulic shovel, five 260 ton haul trucks, and a PV 351 drill. The mine utilises a conventional crushing, grinding, and flotation system in order to produce copper concentrates with gold and silver credits. The mine processing plan focuses on processing the higher grade
Construction of one of two new 24 foot diameter ball mills
Petro Canada Lubricants Extracting Success: Petro-Canada and Copper Mountain Mine Partnership When The Copper Mountain Mine commenced production in the summer of 2011, it purchased over $100 million worth of new mining equipment consisting of thirteen 240 and five 260 ton haul trucks, 3 hydraulic shovels, the world’s largest mechanical loader as well as a number of other support machines – which implies a tremendous amount of attention must go into all aspects of operations, especially the lubricant considerations for each and every machine. Choosing the Right Lubricant Supplier Copper Mountain presented unique challenges to potential lubricant suppliers including: processing 35,000 TPD through the mill and mining 160,000 tonnes of rock a day, enduring rough, muddy and extreme weather conditions, considering different lubricant requirements for its variety of equipment,
makes and models, and the need to have all of their operations running smoothly and properly on one lubricant supplier. “The one thing that mattered most was that suppliers actually did what they said they would do – that’s what’s really important,” explains Tom Blake, Mine Maintenance Superintendent, Copper Mountain Mine. Petro-Canada Lubricants surpassed the competition with their experience, expertise and proven products to become an integral part of the preparation process. They were involved in designing the lube systems, implementing procedures, and selecting the products that would provide the best results. At Petro-Canada Lubricants, we are proud to partner with industry leaders like Copper Mountain, who put Canada on the map for world class mining. Congratulations on all of your accomplishments to date and best wishes for continued success. www.lubricants.petro-canada.ca
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Transportation and Logistics Solutions for the Road Ahead
Products transported, handled and value added services include: Mining Concentrates, Fibre, Building Materials, Steel Products, Liquids, Bulk Products, Biosolids, Over Dimensional, Heavy Haul, Containers, Logistics and Consulting.
T: 250-374-3831 | E: rpedersen@arrow.ca | www.arrow.ca
Copper Mountain Mining Corporation
ore in the first twelve years, with lower grade material being sent to stockpiles for blending and processing later in the mine’s life. The facility is designed to operate 24 hours per day, 365 days per year with a 92 percent mechanical availability including pre–scheduled downtime for equipment maintenance. Concentrates are exported via the port of Vancouver to Mitsubishi smelters in Japan for treatment and sale. In addition to the resources it has already mined and continues to bring to the surface, the company is well aware of the significant exploration upside that still exists on the Copper Mountain project. The area surrounding the mine has played host to successful exploration programmes for the best part of 100 years now and the company is steadfast in its belief that this tradition will remain in place for many years to come.
Arrow Transportation Systems Arrow Transportation Systems has been a transportation partner to the mining industry in Canada and abroad for over 50 years and in the transportation business for almost 100. We are an industry leader in truck transportation, materials handling, logistics management, consulting and technology management. We are known as an organization that can provide comprehensive, innovative solutions to customers at the least total long-term cost. Jim O’Rourke is an industry leader, an innovator and a driving force in the international mining industry. We are proud of our long association with Jim and our role as the trucking transportation partner for Copper Mountain. www.arrow.ca
Lower Bowl Frame of secondary crusher in Kamloops BC awaiting to be transported
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Chemistry Delivered.â&#x201E;˘
Comprehensive selection of core and specialty chemicals. Unparalleled scale and connectivity across geographies. Technical insight for every stage fo mine development. +1855 888 8648 www.univar.com Š 2012. Univar Inc. All rights reserved. Univar, the hexagon, and the Univar logo are registered trademarks of Univar Inc.
Copper Mountain Mining Corporation
univar Univar is the distribution partner that is transforming the way chemicals are bought, sold and managed in the mining industry. We supply a comprehensive selection of core and specialty chemicals for every stage of mine development, from exploration and extraction to reclamation. The breadth of our product line is unsurpassed, including absorbents and adsorbents, acids and acid cleaners, coagulants, collectors, frothers, mining and ore digging aids, surfactants, water treatment and much more. Our extensive distribution network, global reach and unparalleled logistical expertise provide our customers a consistent and reliable source of supply. In addition to our vast product offering, we provide important value-added services for our customers and suppliers. www.univar.com
The aim of any future exploration programmes will be to define additional resources from numerous untested targets previously identified by a deep penetration Titan 24 survey that was conducted in late 2007. Interpretation of the geophysical properties is consistent with the geological model of hydrothermal alteration and mineralized zones within an alkali porphyry setting. From day one the Board of Directors and management of Copper Mountain have collectively held the belief that maintaining the highest standards of corporate governance is a critical factor when it comes to the effective operation of the mine and the business as a whole. Together they state that the company should always be managed in an ethical way and, in making this a reality, have in place a Code of Business Conduct and Ethics which all its employees, executives and shareholders uphold.
The lower main frame being lifted into position using a specialized crane
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PRECIOUS RESOURCE DISCOVERED Click here to visit our dedicated homepage for the mining community
www.bus-ex.com/mining
The Gisborne Group is pleased to continue our relationship wih Copper Mountain as the General Works Contractor for the construction and installation of the secondary crusher.
Phone: 604-520-7300 Fax: 604-522-0425 www.gisborne.com • CONCRETE • FIRE PROTECTION • STRUCTURAL ERECTION • INSTRUMENTATION • MECHANICAL • ELECTRICAL • PIPING • CONTROLS
CONTINUOUS IMPROVEMENT - INTEGRITY - RESPECT - CLIENT FOCUSED
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Perhaps the two most important areas covered by the code are health and safety, and environment and sustainability. As is the case with all professional mining operations, Copper Mountain strives to achieve the highest standards of mine safety and healthy across all of its business activities, a commitment the binds together the company’s Health and Safety Policy. The safety and health of all employees and contractors is of the utmost priority to Copper Mountain’s management. As such training programs, safe work procedures, site housekeeping and operational standards are enforced at Copper Mountain, which together are designed to ensure that all work is undertaken in a safe manner with minimal risk to employees and equipment. Much in the same way that the company recognises the importance of providing a safe working environment, Copper
Copper Mountain Mining Corporation
Panoramic view of the interior of the process plant.
â&#x20AC;&#x153;The company ensures that it incorporates environmental management into all of its business activitiesâ&#x20AC;? Mountain recognises that mining in itself is temporary land use activity. Therefore the company ensures that it incorporates environmental management into all of its business activities. It realises that managing environmental responsibilities is an integral component in ensuring that the sustainability of its current and future operations is maintained.
Additionally, Copper Mountain is committed to returning the land to an overall improved condition after mining has ceased while preserving the heritage value of each site. As part of this commitment, consultation with community groups is carried out during the development stage of rehabilitation plans to ensure that the needs of all stakeholders are taken into account. This is reflected within the companyâ&#x20AC;&#x2122;s Environmental Policy, which sets out what it hopes will become the legacy of the site long after it has ceased production. Copper Mountain Mining Corporation
604.682.2992 jim@CuMtn.com www.cumtn.com
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EcoEle
Power for th
By generating clean, safe and reliable energy from n of the Caribbeanâ&#x20AC;&#x2122;s lowest cost producers and a vita words by
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Will Daynes
ectrica
the future
natural gas, EcoElectrica has established itself as one al contributor to Puerto Ricoâ&#x20AC;&#x2122;s growing energy mix research by
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t was at the beginning of the 1990s that the groundwork behind the foundation of EcoElectrica was first laid. Impacted by a combination of high oil prices and new legislation designed to combat the environmental impact of the fuel, the newly elected Government of Puerto Rico embarked on a plan to diversify the country’s energy portfolio, incorporating more clean, safe and cost effective alternative energy sources in order to reduce Puerto Rico’s dependency on oil, which at the time made up 99 percent of the energy used on the island. “It was the executive director of PREPA at the time that helped facilitate the creation of a Power Purchase Agreement (PPA) contract which would come to be in place by early 1995, effectively beginning the journey of EcoElectrica,” explains Jaime Sanabria, General Manager of Finance and Administration. “Following several years, during which time financing was put in place and fuel agreements were signed, EcoElectrica’s ground-breaking ceremony was held in 1998 and two years later, in March 2000, commercial operations officially began at our power plant, followed by our LNG terminal in August 2000.” The first independent power generator in the world to integrate a cogeneration plant using natural gas with an import terminal for LNG, EcoElectrica is today the preferred
I
“The first independent power generator in the world to integrate a cogeneration plant using natural gas with an import terminal for LNG”
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Commercial operations officially began at our power plant in March 2000
EcoElectrica
“The time we have been in existence has been very much defined by our mutually beneficial and strong relationship with PREPA” supplier of energy to PREPA and possesses the only facility on the island with the capability to import, store, regasify and export natural gas. “The time we have been in existence has been very much defined by our mutually beneficial and strong relationship with PREPA,” Sanabria continues. “With new regulations being introduced on a regular basis by the likes of the Federal Government and the Environmental Protection Agency targeting emissions and other controls we have become an even larger part of the energy equation in Puerto Rico. In our case 99 percent of the fuel we burn is of course natural gas, therefore we should provide PREPA with a means to avoid what are very costly penalties that would be incurred from not meeting these new regulations that take effect in April 2015.” At the heart of the company’s power generating ability is its combined cycle power plant, one which operates on three generating turbines, two of which burn gas with the other being a steam turbine. Together these allow the plant to produce approximately 540 megawatts of power, a figure which equates to 15 percent of the total electricity generated in Puerto Rico. The steam generated during the process of converting LNG also helps run the plant’s water desalination facility. Here the company extracts ocean water in order to produce two
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Seen
Contact us today and put your company in the spotlight!
vincent@bus-ex.com
Industrial Equipment Repairs, Inc. PRECISION IS OUR BUSINESS
Industrial Equipment Repairs, Inc. is an industrial machine shop specializing in precision parts fabrication and industrial mechanical work. We proudly serve the power generating, petro-chemical, pharmaceutical and general industrial contracting companies of Puerto Rico. Contact Details: P O Box 7749, Ponce, Puerto Rico, 00732-7749 Tels. (787) 843-6269 & (787) 841-1112 Email: ieripr@gmail.com
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million gallons of distilled water and drinking water per day. After servicing its own water needs the company is left with a surplus of some one million gallons of water which it uses to supply PREPA’s Costa Sur plant. The other ace up EcoElectrica’s sleeve is its LNG terminal. In addition to its above land storage facility, which allows the company to store to up one million gallons of LNG in liquid form, the facility also boasts four regasification units, each of which has a capacity to regasify up to 93 million square feet of gas per day. Two of these units operate on a continual basis while the others act as back up. “The terminal also acts as an import facility into which we receive between 24 and 26 shipments of natural gas per year,” Sanabria highlights. “On average the standard cargo we receive per shipment equates to some 119,000 cubic metres of gas, with nine of these annual shipments being consumed by
EcoElectrica
EcoElectrica’s above land storage facility allows the company to store up to one million gallons of LNG in liquid form
“EcoElectrica prides itself on being a long standing supporter of local communities, particularly when it comes to the education of children” ourselves and the remainder being used by PREPA as its Costa Sur plant.” EcoElectrica has always been among, if not the lowest cost producers of energy in Puerto Rico, however the benefit this provides consumers in the form of lower energy bills is far from the only positive impact the company strives to have on the island and its people. While admittedly the company’s various environmental initiatives did begin life as a demand of the permit requirements it was granted back in the 1990s they have
continued to grow well beyond the periods defined by these early agreements. Examples of EcoElectrica’s continued commitment include its monitoring of the ecosystem that exists in the Bay of Guayanilla in which it is located. Here it assists with the monitoring of sea life including sea grass, corals and nesting turtles, in order to ensure that there is no deterioration in sea life as a result of its activities or industrial processes. Social responsibility also plays a considerable part in the company’s operations, with
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The terminal receives between 24 and 26 shipments of natural gas per year
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EcoElectrica
“EcoElectrica stands poised, willing and able to maximise its own contribution in the form of low cost energy production”
EcoElectrica priding itself on being a long standing supporter of local communities, particularly when it comes to the education of children. “Every year we provide 40 scholarships to the most outstanding students graduating from both the Guayanilla and Peñuelas high schools as a way of supporting their individual process into higher education,” Sanabria enthuses. “Since 1999 we have awarded over $600,000 in scholarships, an investment that is worth every cent when we see these students returning as engineers, scientists and so forth, and thanking us for the opportunities we helped create in some small way.” In addition to the aforementioned programme, EcoElectrica also provides assistance by supporting a local kindergarten by supplying all the uniforms, books and stationary required for the children that are beginning their educational lives each year. Meanwhile the company is also active in helping communities develop ways in which they can better themselves, supporting various community outreach programmes that are designed to highlight the way people can achieve a better quality of life without the need of an open cheque book. At the time of writing, Puerto Rico faces a new challenge, one born out of the recent downgrading of its credit rating by several leading financial institutions. In recognising the part it has to play in helping the island’s Government to correct this financial situation, EcoElectrica stands poised, willing and able to maximise its own contribution in the form of low cost energy production, while also providing PREPA with increased
support by maximising the send out of natural gas to its Costa Sur plant. From a longer term perspective the company will be looking to develop the utilisation of its LNG terminal. “This facet of the business has great potential, with it being the only facility of its kind on the island capable of receiving and distributing LNG,” Sanabria says. “We see it as having the potential to positively impact several economic areas that have yet to be targeted in Puerto Rico, for instance the chemicals industry and the field of automobile applications. Our priority is to get the Government’s perspective regarding the terminal and how we can best align it to their plans in order to maximise the facility’s contributions. Meanwhile, we will also be keeping our mind open to the possibility of one day serving other Caribbean islands with LNG should that become a better way of maximising our potential in the long run.” Regardless of where the future may take its LNG terminal, there can be little doubt that as one of the lowest cost producers of energy on the island, together with its willingness to contribute to and improve the lives of Puerto Ricans, EcoElectrica will have an increasingly significant role to play in Puerto Rico’s future.
EcoElectrica
787-836-2740 yamaris.alancastro@ecoelectrica.com www.ecoelectrica.com
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LUCE
Powering an
Saint Lucia did not attain full independence t nevertheless its electric power utility Saint Luc established in 1964, which means that this words by
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John Oâ&#x20AC;&#x2122;Hanlon
ELEC
island nation
till 1979, so as a nation it is just 35 years old: cia Electricity Services Limited (LUCELEC) was s year it is celebrating its 50th anniversary research by
Robert Hodgson BE Weekly [ Issue 84 ]
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Line maintenance work being carried out
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LUCELEC
rom the outset LUCELEC’s mission has been to provide an excellent service to its customers by adequately supplying a reliable and continuous electrical supply to the Saint Lucian population, at an affordable cost. Though it serves a small country of fewer than 175,000 souls, LUCELEC’s approach has earned it a reputation across the Caribbean as a very well-run, world-class utility regarded as a best practice benchmark company with a strong emphasis on customer service, innovation, employee development and social and economic development. The company went public in 1994, and its shares are traded on the Eastern Caribbean Securities Exchange. The company emerged as a unified and centrally managed source of power, from several small facilities dispersed around the
F
years ago there were still plenty of people who remembered the days when all we had were a couple of small systems in the larger communities, providing power for limited periods in the day,” he recalls. “We had already made significant progress, but we have made a lot more since. The system has now been developed island wide. Over 99 percent of customers who want electricity have access to it. Quality and reliability of supply has increased by leaps and bounds.” By the end of the 1980s the company was virtually self-sufficient in all but the most specialised needs. In 1990, new generating and transmission systems were commissioned which redefined the standards the company had previously applied to all its operations. The Cul de Sac power station was inaugurated
“Over 99 percent of customers who want electricity have access to it. Quality and reliability of supply has increased by leaps and bounds” island. This allowed for the expansion of facilities island-wide, as well as the opportunity to rationalise operating costs. The 1970s saw the company facing an explosion in the demand for power as hotel development and banana production transformed the economy. By the early 1980s it was clear that the company was entering a new phase and better trained people were needed to cope with an increasingly technological environment. The company initiated a highly successful craft apprenticeship programme and began the recruitment of graduate staff for all senior positions. Trevor Louisy was one of these graduates, a specialist in electrical engineering. He rose through the ranks becoming LUCELEC’s Managing Director in 2005. “When I joined the company 28
with three fuel-efficient, six to seven megawatt MAK engines. A 66 kV transmission system was introduced allowing the more efficient flow of power around the island. Over the years the company has added seven larger Wärtsilä units. The ultra modern power station and distribution grid are now the envy of sister utilities in the Eastern Caribbean says Louisy. Today LUCELEC employs 250 people but creates up to another 200 jobs within Saint Lucia through its contractors, who mainly work on transmission and distribution infrastructure maintenance, vegetation management and street lighting maintenance. These contractors, he says, have been developed and trained by LUCELEC over many years. But there is always room for improvement. “In 2014 we will be trying to improve our
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FINAL MILE LOGISTICS FOR OVER A HUNDRED YEARS Greenshields Cowie’s services include: • Pre-shipment inspection • Packing and consolidation • Marine cargo insurance • Warehousing • Multi-modal movements by sea, air and road • Customs clearance • Delivery to final in-country destinations For further details contact Sophie Brayfield Operations Manager, UK at Sophie.brayfield@greenshieldscowie.com Tel: +44 (0) 20 8643 3533 or visit our website www.greenshieldscowie.com
RELIABLE, COMPETITIVE AND FLEXIBLE
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LUCELEC
performance in certain specific areas, such as losses, efficiencies and corporate diversification.” Losses are calculated by subtracting the units generated from those sold or consumed. The difference could be technical or non-technical – the latter a combination of illegal energy extraction such as meter tampering or losses resulting from old and inefficient meters. “We have made good progress in dealing with technical losses and we are working very hard to reduce our non-technical losses,” he says. “Last year we finally got total losses below the nine percent level and this year our target is to get the figure down to eight percent or lower.” For larger utilities the buzzword is smart metering. LUCELEC is keeping a close watch on innovation and as part of its programme of phasing out old meters is installing equipment that will support smart grid technology. That’s one for the future though. For now Trevor Louisy is keen to advance the adoption of alternative, green power on the island. “Developing alternative power sources is a major priority for us. We are disappointed that we have not made as much progress in the area of renewable energy as we
GREENSHIELDS COWIE FINAL MILE LOGISTICS FOR OVER A HUNDRED YEARS In a world that seems to be getting smaller, Greenshields Cowie (GSC) will help you gain an edge in today’s increasingly competitive global marketplace. Our unique network of partners and agents built up over a history that spans some 200 years ensures delivery to final mile destination time and again. We provide bespoke, innovative, logistical solutions to international development agencies and their clients, as well as long-standing commercial clients such as LUCELEC. Our services include packing, consolidation, Air and Sea Freight transportation, marine cargo insurance, warehousing, customs clearance and delivery to final in-country destination. www.greenshieldscowie.com
Trevor A. Philip Agencies Limited Trevor A. Philip Agencies Limited boasts a staff of fifteen (15) and is highly regarded as the number one shipping logistics provider in Saint Lucia if not in the OECS offering Customs Brokerage, Freight Forwarding, Packing, Ship’s Agents, and Household Goods Moving Services. Our affiliations with highly respected Associations, Shipping Companies, Packers and Movers worldwide have put us in the enviable position of being able to provide services to and from any continent. tpagency@candw.lc
Trevor Louisy, Managing Director
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inspired Your weekly digest of business news and views
www.bus-ex.com Allied Cables
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would have liked, but I am hopeful of seeing reasonably significant developments this year and next year.” LUCELEC and the Saint Lucia government have been in talks aimed at reaching a consensus over renewables now that the country has changed its target to source 35 percent of its energy from renewable sources by 2020, up from 20 percent. Wind power is on the agenda, however Louisy is very conscious that the sun that brings tourists to the island could also be a major contributor to the energy mix and help reduce dependence on fossil fuels. “We have had some significant discussions regarding utility scale solar installations. Right now we are entering the third year of a pilot photovoltaic (PV) rooftop installation program and are currently finalising the tariff mechanism that governs how these systems feed into our grid.” The aim is to allow residential customers to connect systems of less than five kW to the
LUCELEC
CDS Power Plant at night
“Developing alternative power sources is a major priority for us” network – for now the main brake on rollout is the high capital cost. Recent discussions with the World Bank could open the way to a very interesting geothermal power project, he adds. Saint Lucia has geothermal potential from the sulphur springs in the west coast town of Soufriere, and Dr James Fletcher, Minister for Sustainable Development, Energy, Science and Technology wants to see this potential developed. “We believe it gives us an excellent opportunity to bring down the price
of electricity, secondly it gives us some buffer in volatility in world oil prices - and the more we can move our dependence away from oil and diesel, then the better for us,” he says. Though it ’s not as green as these technologies , natural gas is more environmentally friendly than oil and its increased use would help bring down electricity tariffs for consumers. In the absence of its own gas resources Louisy would like to be able to shift over to natural gas, but is constrained by the existing diesel plant at Cul de Sac. “We looked at HFO a few years ago but found that the investment we would have to make to convert our plant was significant, and it was around the same time that the differential between heavy fuel and diesel had reduced significantly, and along with the environmental considerations, we decided not to go ahead with that. However we took a policy decision that for
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LUCELEC was the main sponsor for the National School Sports programme
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LUCELEC
“We aim to integrate, implement and promote socially responsible behaviour throughout the organisation and across our sphere of influence”
any new facility we might build we would commission engines designed to run on all or any of these fuels.” To reassure and attract potential investors Saint Lucia is moving to set up an independent national utilities regulator and recently brought together public and private sector stakeholders to discuss the draft legislation. LUCELEC is supporting this process, says Louisy, and taking a proactive stance in the discussions: “We want to make sure that there is transparency and integrity and that the government maintains a sort of arm’s length approach, not influencing or instructing the regulator as to what decisions they should reach!” At its own expense the company has been preparing the organisation and the staff, and engaging the external stakeholders, including the government, towards an understanding of the nature of regulatory best practice. Experts from the London School of Economics were invited to Saint Lucia last year to conduct in-house training “If regulation is not managed properly it can become very costly,” he concludes. “We are trying to make sure that we do the right things from the beginning rather than trying to correct errors at a later stage, when the damage is already done.” As a responsible service company LUCELEC has a robust CSR policy informed by ISO 26000:2010 guidance. “We aim to integrate, implement and promote socially responsible behaviour throughout the organisation and through our policies and practices, right across our sphere of influence,” says Trevor Louisy. The policy translated to
practical wins throughout 2013 in the areas of environment, sport, education, charity, culture and enterprise. Among these was funding for access to early childhood development interventions for children and parents in disadvantaged communities benefiting 3,029 children from 2,918 families. LUCELEC was the main sponsor for the National School Sports programme which included inter-school competitions in football, netball, basketball, cricket, athletics and tennis. It also sponsored the National Arts Festival, with a range of performing arts projects, and the Folk Research Centre’s Jennes Kwéyòl Pageant which encourages secondary school students to celebrate the island’s creole heritage. In the past 15 years LUCELEC has demonstrated a capacity to anticipate and plan for or respond to the changes in the industry and the operating environment, Trevor Louisy relates with pride. “Our resilience and response capacity has been tested and demonstrated with recent natural disasters like Hurricane Tomas in 2010 and more recently on the Christmas Eve trough, where we had significant rains on Christmas Eve and on Christmas morning with the loss of a number of lives. We are confident that we can rise to whatever new challenges are on the horizon!”
LUCELEC
+1 758 457 4400 info@lucelec.com www.lucelec.com
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Mediterranean Shipp
Shipping to and fr
Backed up its fleet of container vessels and m has been linking South Africa directly words by
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Will Daynes
ď ľ research
ping Company (MSC)
rom South Africa
multiple service divisions, MSC South Africa y with the rest of the world since 1978
research by
Peter Rowlston BE Weekly [ Issue 84 ]
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MSC South Africa operates a successful reefer cargo division
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Mediterranean Shipping Company (MSC)
ounded in 1970, Mediterranean Shipping Company (MSC) has since transformed itself from a small conventional ship operator into one of the world’s largest and best known maritime transportation groups. By providing an unparalleled service network through its various offices around the globe, and through the expansion of its fleet, MSC has successfully consolidated its position as the second largest carrier in terms of container slot capacity and the number of container vessels operated. It was the founding of MSC’s EuropeSouth Africa service in the 1970s that resulted in the establishment of Mediterranean Shipping Company (MSC) South Africa. In adopting the group’s unique, innovative and flexible approach to shipping MSC
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levels the company delivers to the shipping community. Perhaps equally important however is also the company’s willingness and ability to initiate change in order to the meet the constantly evolving needs of its clients. MSC South Africa operates a successful reefer cargo division, tasked with shipping temperature controlled commodities such as fruit, fish and meat to a number of destinations. In addition to its reefer equipment that comes in both twenty and forty foot capacities, the company also offers controlled atmosphere and specialised protocol shipments. The goal of the reefer division is to maintain the cold chain throughout the voyage so as to preserve the commodity being carried. By keeping transit times to a minimum the division is also able to extend the life of the
“The success of the business, particularly during the course of the last decade, can in large part be attributed to MSC’s Quality Management System” South Africa has grown to become one the biggest users of South Africa’s ports. The large fleet of container vessels that the company today boasts has allowed it to expand to deliver services along a number of major trade routes which link South Africa directly with Europe, the United States, Asia, the Middle East, Far East and Australia. Closer to home links are also provided between South Africa and numerous key ports along Africa’s West and East Coasts, Madagascar and several Indian Ocean Islands. The success of the business, particularly during the course of the last decade, can in large part be attributed to MSC’s Quality Management System. This system aims to achieve continuous improvement throughout the group, especially when it comes to service
product in question. Today MSC South Africa’s main reefer markets include the UK, the United States and Canada, the Middle East and the Mediterranean, while business continues to grow at a healthy pace in East and West Africa, and in the Far East. As the business has grown, MSC has made sure to invest in the acquisition of a number of characteristic office buildings, each of which has become something of a landmark in their respective locations of Durban, Johannesburg, Cape Town, Port Elizabeth and Pretoria. Particular attention however has been paid to the restoration of the company’s Port Elizabeth offices, housed in a building that has long held the distinction of being recognised as a national monument. The restored building was officially opened in 2004 and today is
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Recent investments have seen the arrival of 7 tandem lift ship-to-shore cranes at TPT’s Durban Container Terminals (DCT), Africa’s largest and busiest container terminal.
Transnet Port Terminal
Transnet SOC Limited, South Afric
We are responsible for commercial handling services of sea-r
transhipments in containers, mineral bulk, bulk and automotive. TPT commercial ports namely Richards Bay, Durban, East London, Port Eli
Karl Socikwa is the Chief Executive at the helm of the TPT business. Th 6000. Billion have been allocated for TPT and its 13 terminals as part of the market demand strategy (MDS). This amount will see TPT boost terminal capacity, develop infrastructure and reduce the cost of doing
Transnet Port Terminals services customers across a broad spectrum container industry, the general shipping industry, vehicle manufac industry, freight forwarders, cargo agents and legal entities (e.g. custo TPT employs over 6000 skilled and dedicated people geared to see our market demand strategy through to completion over the next six years.
For more information, please visit our website on www.transnetport
ls (TPT) is one of five operating divisions of
caâ&#x20AC;&#x2122;s state-owned freight transport and handling company
route freight across imports, exports and T operates terminals in seven South African izabeth, Ngqura, Cape Town and Saldanha.
he company has a staff complement of over f the R300 billion capital investment termed its cargo handling equipment base, create g business in Southern Africa.
m of the economy, including shipping lines, cturers, agriculture, steel and the mining oms).
tterminals.net
transnet port terminals
Delivering freight reliability Transnet Port Terminals (TPT) is home to two of the world’s top 120 container terminals Cape Town, Durban and Drewry’s fastest growing container terminal in the world Ngqura Container Terminal (NCT). The company is one of five operating divisions of Transnet SOC Limited, South Africa’s state-owned freight transport and handling company investing R300 billion in the expansion of port, rail and pipeline infrastructure between 2012 and 2019. A total of 13 terminals are operated by this South African terminal operator in seven of the country’s commercial ports namely Saldanha, Cape Town, Ngqura, Port Elizabeth, East London, Durban and Richards Bay. Recent investments have seen capacity creation across the company’s terminals including Africa’s biggest and busiest container terminal in the Southern Hemisphere, the Durban Container Terminal (DCT). Capacity
TPT’s transhipment hub Ngqura Container Terminal (NCT), ranked first twice in 2012 and 2013 in a Drewry Maritime Research for being the fastest growing terminal in the world
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will increase to 4 million TEU after the extension and deepening of the berth on the North quay at DCT. Cape Town Container Terminal (CTCT) recently completed upgrades, the construction of additional reefer plug points and the extension of the quay wall to accommodate 1.4 million TEUs per annum. Similarly, the Ngqura Container Terminal (NCT) – South Africa’s transhipment hub is in its second phase of development to increase its capacity to 800 000 TEUs with complementing equipment. The introduction of the market demand strategy (MDS) has influenced TPT to increase its footprint in Africa and in the world offering improved connectivity to existing and new markets over the next six years and beyond. The company is creating capacity ahead of demand, growing and enhancing its skills base across its four sectors namely containers, bulk, break bulk and automotive. TPT’s growth intentions have been witnessed
TPTâ&#x20AC;&#x2122;s Cape Town Container Terminal after berth extension, making it debut in the Worldâ&#x20AC;&#x2122;s Top 120 Container Ports Â
through its extensive equipment investment in the past 12 months across all its other terminals namely Richards Bay Dry Bulk and Multi-Purpose Terminals (178km North of Durban), Port Elizabeth Terminal, Saldanha Bulk Terminal, Multi-purpose and Automotive Terminals. This includes multi million rand ship loaders, mobile cranes, ship-to-shore cranes, multi million rand unloaders and varying break-bulk equipment for its bulk, break bulk, agricultural and automotive terminals. Furthermore, TPT has signed several memorandums of understanding recently to leverage on unique opportunities presented by partners across the supply chain and industry globally. Of these, is the partnership with construction and engineering group Aveng in Mtwara, Tanzania where a new port is currently under development and proposals are open to eligible operators. There is also a number
of other value-add services and information sharing partnerships in place and in progress. The combination of all these efforts and plans is aimed at TPT fulfilling its role in growing Africa trade and enabling landlocked countries to trade internationally. The company prides itself with a workforce of over 6000 dedicated employees and intends growing this number for continued inroads in job creation. The work in progress to develop all our terminals to world-class standards with an ability to accommodate future generation vessels, will ensure TPT offers all our customers superior value, efficient service and that we deliver freight reliably.
+27 31 308 8000 tptcallcentre@transnet.net www.transnetportterminals.net
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Tel: 021-8630266/7/8 Fax: 021-8630269 Email: huddletp@mweb.co.za Street: Farm Lo Andre, R45, Simondium, 7646 Postal: PO Box 603, Paarl South, 7624
Long Distance Haulage We started our company in 2002. We specialise in long distance haulage to Gauteng, Durban and Port Elizabeth, handling containers, break bulk and steel loads. Additionally, all of our trucks are equipped to handle hazchem loads. We have our own super links, but we also have several dedicated transporters that work for us on a permanent basis.
Mediterranean Shipping Company (MSC)
MSC has diversified to include a Container Depot Company
â&#x20AC;&#x153;Depicting the changing times of the shipping industry over the centuries, it is rather aptly titled the Millennium Windowâ&#x20AC;?
recognised for the elaborate stained glass window that adorns its entrance. Depicting the changing times of the shipping industry over the centuries, it is rather aptly titled the Millennium Window. In moving with the times the company has also enshrined an ability to diversify into other areas of business. Such diversifications include the creation of a Container Depot Company and an Intermodal/Landside Logistics Company. Together these companies help
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ANE ANE INDUSTRIAL SUPPLIES (PTY) LTD.
The first official Woodward Govenor Agent for the Sub-Sahara region since 1973, making us the leaders in the service, repair, installation and commissioning of the Woodward Govenor range on the marine, industrial, milling and mining sectors. Marine services include: • Sales, repair, overhauling and servicing of pumps, injectors and marine engines • Agency to supply Wencon ship repair kits • Materials handling to warehousing and loading dock facilities Contact us: 35 Acutt Avenue, Durban North, 4051, South Africa P.O. Box 40117, Redhill, 4071, South Africa Tel: +27 31 579 44357 • Fax: +27 31 579 4359 Email: roy@ane.co.za • www.ane.co.za
You can bolt us to our promise H A N D TO O L S | A B R A S I V E S | FA S T E N E R S | LU B R I C A N T S | P O W E R TO O L S S A F E T Y E Q U I P M E N T | P R OT E C T I V E C LOT H I N G | W E L D I N G CO N S U M A B L E S
We are proud to be associated with MSC.Relation is what we share, Success is what we pray and continual growth and progress is what we wish for you. Established in 1989 by its founder, Roy Naidoo, SA Fasteners have since become a leading force in shipping, automotive, civil, building and furniture industries with quality fasteners and hardware supplies. SA Fasteners offers one stop shopping for all your Hardware and Fasteners requirements. As a Master Stock Distributor, SA Fasteners offers immediate delivery on stock items. We are always ready to give you a Competitive Edge by saving you money and by being your quality on time shopper. Suppliers of all types of industrial fasteners and a wide range of tools and consumables. In our commitment to growing the S.A. economy and improving the participation of black South Africans in the formal economy, SA Fasteners employs 99% black South Africans
Community action changes people’s lives,embodies the spirit of hope and improve communities. Helping to make our communities a better place to live in
PO Box 18265, Dalbridge 4014, 161 Gale Street (Magwaza Maphalala), Durba 4001 | Tel: 031 300 7300 • Fax: 031 305 7620 43 Circuit Road, Westmead, Pinetown, 3610 | Tel: 031 700 5522 • Fax: 031 700 5090 | www.safasteners.co.za
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Mediterranean Shipping Company (MSC)
provide the type of one-stop service that MSC South Africa has become known for. Individual depots can be found in Cape Town, Durban, Johannesburg, Rosslyn and Port Elizabeth. The Rosslyn depot boasts its own rail siding and provides particular benefits to clients in the motor industry as it provides easier access to their manufacturing plants. Meanwhile, the Uitenhage depot in Port Elizabeth is situated within the Nelson Mandela Bay Logistics Park and is also strategically situated in close proximity to a large global motor manufacturer. The most recent addition to the companyâ&#x20AC;&#x2122;s depot portfolio can be found within the Industrial Development Zone in East London, Eastern Cape. MSC Logistics, the intermodal arm of the company, has a longstanding contractual relationship with Transnet Freight Rail (TFR), the service provider of South Africaâ&#x20AC;&#x2122;s rail
ANE Industrial Supplies (Pty) Ltd Established over 40 years ago, Transport & Marine, currently operating under the holding company name of ANE Industrial Supplies while slowly reverting back to its original name, has grown into one of the leaders in the mechanical & electronic prime mover & generation control industries in the subSaharan region. The company was appointed as the first official Woodward Governor Service Facility outside of the USA in 1973, thus representing the leaders in the manufacture & design of electro mechanical, mechanical & electronic prime mover control systems for both marine & industrial applications. www.ane.co.za
Aerial view of Cape Town harbor
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“MSC South Africa has grown to become one the biggest users of South Africa’s ports”
Did you know? 1970 The year that Mediterranean Shipping Company (MSC) was founded 1978 The year that MSC South Africa was founded 1998 Year which MSC South Africa’s technical division was expanded 2004 Opening of the of the company’s restored Port Elizabeth offices 452 Number of dedicated local offices around the world 155 Number of countries in which MSC opperates 700 Number of trailers controlled by MSC Logistics
MSC is one of the biggest users of the South African ports
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300 Number of trucks controlled by MSC Logistics
Mediterranean Shipping Company (MSC)
MSC South Africa is well known for providing a one stop service
corridors. The strong relationship between the pair allows MSC to offer TFR competitive rates of business, good transit times between ports and inland rail terminals, and up to date tracking through its electronic connections to its clients’ computer systems. MSC Logistics controls more than 700 trailers, more than 300 trucks and a large fleet of Owner Drivers, truck owners commissioned as sub-contractors. Together these assets cover a large road transportation service of full deliveries, empty returns and the repositioning of empties for export demand. Such resources also allow it to offer local cartage within 300 kilometres of the major ports and inland rail terminals in Cape Town, Port Elizabeth, East London, Durban, Johannesburg and Pretoria. Another venture that has witnessed a great deal of success in recent years is MSC
South Africa’s technical division, which was expanded in 1998 to include a world class, full scale engine repair and maintenance facility, headed up by a team of experienced and highly skilled South African and Italian engineers. This division of MSC South Africa, much like the company itself, has gone from strength to strength since the emergence of a democratic South Africa and shows no signs of slowing down.
Mediterranean Shipping Company (MSC)
+27 21 405 2000 distribution@msc.co.za www.mscsouthafrica.com
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