W H AT E V E RY D U R BA N BU S I N E S S P E R S O N N E E D S TO K N OW.
SUMMER 2011 R35 (incl VAT)
water CRISIS THE BURNING ISSUE: Bill Gates, The City and big business to the rescue
INSIDE: COP17's Durban deal Toll road controversy uKhozi FM - Flying high Port dilemmas Ethanol energy
Facing up to the
ore than a decade ago, at a private lunch held during the World Economic Forum in Davos, Switzerland, a confident Bill Gates outlined to a small but sceptical group of international editors a vision of devices on which you would be able to read newspapers, books and magazines digitally, leading eventually to a paperless society. I was one of those cynical editors, reporting back to my boss, a big believer in print, who was dismissive. Now I-pads and similar tablets are taking the world by storm, changing the way we live. Happily for Durban, Bill Gates has new interests, one of them being another lifestyle changing device which is being developed by the city’s head of water and sanitation, Neil Macleod. Bill Gates, the founder of Microsoft and one of the world’s wealthiest men, is no stranger to Durban. What attracts him here most, however, is Macleod’s work on providing sanitation to the poor by use of a waterless toilet with plans to turn the waste from these toilets into a sustainable business model. Gates’s foundation is backing these efforts with substantial funding. When you consider that 30% of Durban’s precious household water is used to flush toilets, you realise how important Macleod’s research is. With a water shortage crisis looming, perhaps only a year away, it is encouraging to note that big business is also coming to the party, as you will read inside. Limited as it soon might be, Durban’s tap water “is top class, tastes good and is safe to drink,” says Julie-May Ellingson, who runs the International Convention Centre, the focus point of the massive COP17 climate change talks. She is so confident that she is going to supply jugs of water and charge delegates for bottled water! COP17 is a massive undertaking, with direct financial benefits running into the millions, which will see Durban under intense media spotlight for three weeks. Happily Durban has tremendous credibility internationally around green issues with programmes it will be able to showcase. In this issue we add our voice of protest to the planned tolling of Durban motorists to pay for a highway along the Wild Coast, many hundreds of kilometres away on a road which is outside the province. We have no objection to the principle of toll roads – indeed the N2 down the south coast is already tolled – but this new proposal is immoral and a disgrace. We also outline problems facing users of the port, notably the discussions surrounding the planned 18% tariff increase and the ongoing challenges over congestion. More positively we report on the upgrading of Maydon Wharf and the reconstruction of berths there. It will re-energise the area. In our media section, read about the growth of Durban’s Ukhozi FM into a radio station second only to a Chinese station in world rankings. Posting listenerships of more than six million, the 70-year-old Zulu-language station has been the launchpad of many of the country’s current media stars. DAVID WIGHTMAN
Write to firstname.lastname@example.org
BUSINESS IN DURBAN sUMMER 2011
THEY SAID IT I never get the accountants in before I start up a business. It’s done on gut feeling, especially if I can see that they are taking the mickey out of the consumer. – Richard Branson
There is nothing like returning to a place that remains unchanged to find the ways in which you yourself have altered. – Nelson Mandela, A Long Walk to Freedom
All our dreams can come true – if we have the courage to pursue them. – Walt Disney
Leaders are made, they are not born. They are made by hard effort, which is the price all of us must pay to achieve any goal that is worthwhile. – Vince Lombardi
Employees make the best dates. You don’t have to pick them up and they’re always tax-deductible. – Andy Warhol
Our business is infested with idiots who try to impress by using pretentious jargon. – David Ogilvy
I don’t know the key to success, but the key to failure is trying to please everybody. – Bill Cosby
Summer 2011 GREAT ROADS But who fits the bill, asks Andrew Layman
GETTING DOWN TO BUSINESS Durban Invest’s Lynette Ntuli is thinking big for local business.
EVERY DROP COUNTS Bill Gates, Neil macleod and Andre Fourie address Durban’s pending water crisis.
THE DURBAN DEAL The greatest climate roadshow is happening on our doorstep.
TAKING IT’S TOLL The controversy over a Transkei freeway which Durbanites must pay for.
FLY LIKE AN EAGLE Durban is home to the world’s second largest radio station, ukhozi Fm.
FEELING THE SQUEEZE Port congestion is becoming chronic.
MAYDON WHARF UPGRADE Durban’s Cinderella readies for the Ball.
ANACONDA TAKES TO THE TRACKS The road versus rail debate along the Natal Corridor.
MAYDON WHARF – JUST AS IT SHOULD BE A look back in time.
THE SARNO STARS meet the father and son at the helm of mediterranean Shipping Company.
TRACING THE WRITERS ROUTE KZN Writers Trail helps to boost tourism
The stunning image of the water flame on the cover is available as a free wallpaper which you can download for your desktop background. Visit www.wallpapers.free-review.net/21__Water_flame.htm
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54 BUSINESS BITES
A brief guide to developments on the Durban business scene.
Who’s who at Durban’s top business functions.
62 OUT TO LUNCH
Anne Stevens shares her lunchtime hotspots.
A WALK ON THE WILD SIDE SATIB help insure KZN’s wildlife
SUGAR ENERGY Developing Durban’s ethanol industry.
KEEPING IT BRIEF Ninian & Lester celebrates milestone.
ONE AMAZING WOMAN margaret Hirsch – the dynamo woman behind Hirsch’s.
DESIGNERS FOR THE FUTURE The Centre for Fine Art Animation and Design lead Durban’s animation industry.
ECONOMIC INDICATORS Key economic indicators for KwaZulu-Natal.
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To read the Business in Durban online visit www.businessindurban.co.za EDITOR BUSINESS DEVELOPMENT PRODUCTION MANAGER DESIGNERS KZN SALES MANAGER DISTRIBUTION SUPERVISOR OPERATIONS MANAGER ACCOUNTS CONTRIBUTORS
David Wightman Themba Ngcobo Lorna King Kyle Griffin Jane Warren Tracy Linden 083 236 3202 Robyn Hulley Doody Adams Sumayia Khan Alan Cooper Terry Hutson Nicola Jenvey Sihle Mthembu Debbie Reynolds Anne Stevens Patricia McCracken Gavin Foster Wanda Hennig Barbara Cole Solomon Mashakeni Ille Thompson Glenda Thompson
John Relihan Raj Lalbahadur
Copyright: All material in this issue is copyright and belongs to Famous Publishing unless otherwise indicated. No part of the material may be quoted, photocopied, reproduced or stored by an electronic system without prior written permission from Famous Publishing. Disclaimer: While every reasonable effort is taken to ensure the accuracy and soundness of the contents of this publication, neither the authors nor the publisher will bear any responsibility for the consequences of any actions based on information contained herein. Material which appears under Business Profile/ Advertorial is paid-for advertorial.
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A N D R E W L AY M A N
Great Roads but who fits the bill?
he relief of the suspension of road tolling projects was not confined to Gauteng where commuters were facing daily charges for the use of the freeway network in and around Johannesburg. In Durban many commuters could be facing daily charges as well if and when improvements and extensions to the N2 commence and a tollgate is installed at Isipingo. This prospect became more immediate when the minister of environmental Affairs recently accepted the environmental Impact Assessment (eIA) which meant that the construction of the road could now proceed. The tolling of that road is still subject to another public consultation process which, as I understand it, is not considered to be effective and can be discounted in practical terms. In accepting the eIA, the minister was dismissive in her response to socioeconomic issues which were at the very heart of the Chamber’s objections, as well as those of many companies south of Durban. They have evaluated the cost of daily toll payments to their businesses and their workers and found these to be astronomical over time. At the very heart of the issue is a combination of the economic need for better infrastructure, better maintenance of it, and the high cost, a cost, which is beyond government’s ability to afford without additional sources of revenue. The fact that government’s only meaningful source of income is the tax-paying populace, including business, seems to escape many of us who have a sense that public money is available inexhaustibly. The Greek people in their
BUSINESS IN DURBAN summer 2011
demonstrations against austerity, for example, cannot understand the parlous position of their national treasury. In our country, we want government to do a whole lot more, but fail to support the measures that would make this possible. In the case of the N2, the south African National roads Agency Limited (sanral) has committed to building a high-quality highway from Durban to east London to replace the dreadful Transkei road which has been the bane of motorists who have had to travel this route over many years. since the amount of traffic on such a highway will be limited, this new road is not affordable unless daily commuters in Durban contribute significantly towards its costs. Therein lies the problem – and the rank immorality. The N2 south is already tolled and is a highway of good quality. Durban commuters are not contributors towards the costs of this road. But, in terms of sanral’s plan, they will become significant contributors to the upgraded extension of the N2 into and through the eastern Cape. From all accounts, sanral has not tried to hide this: apparently a spokesperson has even gone so far as to state categorically that the N2 development is possible only if paid for by the people in Durban. No wonder that there are moves to mount a legal challenge to the minister’s acceptance of the eIA. What is being contemplated is palpably unfair. It has no base of principle at all. And it compromises the public’s understanding of the tolling policy which was to support city-to-city highways and not to fleece commuters who, often through lack of suitable alternative routes, are captive toll-payers on national roads.
Many people were mightily relieved when the Minister of Transport announced a suspension of road tolling projects pending further consultation
Made by hand to touch your heart
Frédérique Constant and Nina Badric share one passion: Supporting the International Children’s Heart Foundation. We will donate the cost of a life-saving heart scan for each Frédérique Constant Double Heart watch sold.
Getting down to E business
Durban Invest’s Lynette Ntuli is thinking big for local business
VERYONE knows that Durban has a very strong tourism brand – but it’s now time that people realised it’s also a hot business destination. “It is important for Durban business to be recognised. There are so many industries here as well as opportunities and potential,” said Lynette Ntuli, the Durban dynamo behind the Durban Business Enhancement Initiative, better known as Durban Invest. Ntuli wants Durban Invest to be at the forefront of making business thrive and grow, thus creating a vibrant economy and ultimately achieving that national priority: job opportunities. It might be a relatively new organisation – now in its second year of existence – but it means business.
BUSINESS IN DURBAN summer 2011