Supply Chain Digital - June 2015

w w w. s u p p l yc h ai n d ig i t al . c o m

J u n e 2 015

TECHNOLOGY The Future of the Warehouse

TOP 10

International Conglomerates

McDONALD’S VOW TO END DEFORESTATION IN ITS GLOBAL SUPPLY CHAIN ROYAL MINT THE NATIONAL TREASURE

share happiness

EDITOR’S COMMENT

Mint condition

the June issue of Supply Chain Digital magazine. This month we showcase McDonald’s commitment to ending deforestation in its supply chain as our front cover feature. The original fast food restaurant chain was one of the 20th century’s most successful companies, but now it is facing up to its responsibility to work with sustainable suppliers for the benefit of the global environment. We are also looking at the future of the warehouse written by Darrel Williams, and how it has grown to sit at the hub of any retailer’s ecommerce operation.

Heading up an impressive list of in-depth company reports is Royal Mint; the 1,129 year old British institution which supplies the coins crucial to our everyday transactions.

From further afield, we have West Africa’s leading industrial corporation, Nigerdock, as well as flag carrier Air Botswana.

Coverage is also given to Suez Canal Container Terminal, Aldrees and Momentive Performance Chemicals. Last but not least, we have a Top 10 conglomerates article looking at some of the most diversified groups in the world connected to supply chain and logistics activities in some form.

HELLO AND WELCOME TO

Enjoy the read!

Sam Jermy

Editor

sam.jermy@wdmgroup.com

3

CONTENTS

FEATURES

6 38 The Royal Mint

Supplychain Management McDonald’s vows to end deforestation in its global supply chain

20

Top 10 Conglomerates 4

May 2015

12

Technology The Future of the Warehouse

66 Suez Canal

Container Terminal

114 Canaroma Bath & Tile

COMPANY PROFILES EUROPE 26 Momentive Performance Chemicals 38 The Royal Mint

MIDDLE EAST 52 Aldrees Petroleum & Transport Services

AFRICA 66 Suez Canal Container Terminal 76 Nigerdock 104 Air Botswana

CANADA 114 Canaroma Bath & Tile

52

120 Andy Transport

Aldrees Petroleum & Transport Services

AUSTRALIA 128 Northline 138 Australasia Railway Association

128 Northline

120

Andy Transport

5

S U P P LY C H A I N M A N A G E M E N T

McDonald’s vows to end deforestation in its global supply chain The fast-food chain, which quickly grew into a multi-billion dollar corporation before the new millennium, has hit tough times recently and now has made a major supply chain commitment W R I T T E N B Y: S A M J E R M Y

6

December 2014

7

SUPPLY CHAIN MANAGEMENT MCDONALD’S, THE WORLD’S largest chain of hamburger restaurants, has recently announced a huge global commitment on deforestation across the company’s expansive global supply chain.

The commitment builds upon McDonald’s Framework and longstanding leadership in the area of sustainable sourcing. The pledge encompasses all of the company’s products and focuses on beef, fibrebased packaging, coffee, palm oil, and poultry for which the company will begin developing specific time-bound sourcing targets in 2015.

McDonald’s will continue working collaboratively with a broad range of stakeholders, including suppliers, governments and NGO partners, to develop long-term solutions designed to combat deforestation around the world.

Francesca DeBiase, Senior Vice President of McDonald’s Worldwide Supply Chain and Sustainability, said: “This commitment to end deforestation demonstrates another major step for McDonald’s as we work to increasingly embed sustainability throughout our global business.

Making this pledge is the right thing to do for our company, the planet and the 8

June 2015

McDonald’s has over 35,000 stores communities in which our supply chain operates. We’re excited to continue collaborating with our supplier partners to achieve our goals.”

“At McDonald’s, we view protection of forests and High Conservation Value areas as important business and societal issues and believe our role is not just to avoid negative impacts, but to promote responsible production that benefits people, communities and the planet. We believe that an

M C D O N A L D ’ S V O W T O E N D D E F O R E S TAT I O N

effective approach towards addressing deforestation will require strong collaboration between governments, civil society and the private sector.”

McDonald’s commitment also aligns with the company’s endorsement of the New York Declaration on Forests, a call for global companies and organisations to do their part in an effort to end natural forest loss by 2030.

This is a major statement by a truly multinational food and drinks

company, with over 35,000 restaurants it is no small commitment too. Ending deforestation in the supply chain has steadily risen up the corporate social responsibility pecking order in recent years, as many organisations recognise their responsibility to change the environment for the better. Proctor & Gamble has vowed to end deforestation in its palm oil supply chain by 2020, and now with McDonald’s on board 9

SUPPLY CHAIN MANAGEMENT

McDonald’s Europe Sustainable Supply Chain with ending deforestation in its entire supply chain, the global community is making progress and striding forward, little by little.

According to World Wildlife Fund (WWF), deforestation creates farreaching challenges and implications for future generations due to loss of biodiversity and contributions to climate change, and accounts for 15-20 percent of global greenhouse gas emissions; underscoring the 10

June 2015

urgent need to address the issue.

WWF helped advise McDonald’s on the deforestation commitment.

David McLaughlin, WWF’s Vice President of Sustainable Food, said: “We commend McDonald’s plans to combat deforestation across their full range of commodities. This will lead to real conservation impacts on the ground, and we hope that this commitment will inspire other companies to take action.

M C D O N A L D ’ S V O W T O E N D D E F O R E S TAT I O N

“This commitment is bolstered by McDonald’s ongoing sustainability work with the beef industry and the company’s participation in WWF’s Global Forest & Trade Network.

Expanding monitoring and compliance efforts by McDonald’s and its suppliers will be critical to ensuring the success of this important initiative.”

Applying throughout the entire supply chain, the core principles and practices of McDonald’s commitment on deforestation include: no deforestation of primary forests or areas of high conservation value; no development of high carbon stock

“This commitment to end deforestation demonstrates another major step for McDonald’s as we work to increasingly embed sustainability throughout our global business” - Francesca DeBiase, Senior Vice President of McDonald’s Worldwide Supply Chain and Sustainability.

forest areas and no development on peatlands regardless of depth, and the utilisation of best management practices for existing commodity production on peatlands.

The company will also continue to respect human rights of all workers across the entire supply chain, and the right of all affected communities to give or withhold their free, prior and informed consent for plantation developments on land they own legally, communally or by custom.

The restaurant chain also pledges to resolve all land rights disputes through a balanced and transparent dispute resolution process, verify origin of raw material production and it will support smallholders, farmers, plantation owners and all suppliers to comply with this commitment.

McDonald’s focus on addressing deforestation began in 1989 when it ceased sourcing beef from the Amazon Biome, and the company’s Global Sustainability Framework has since expanded to include efforts surrounding food, sourcing, planet, people, and community.

For more information on McDonald’s sustainability programme online see: 11

TECHNOLOGY

The Future of the Warehouse With the constantly evolving landscape of consumer demand, Vocollect asks what the future of the warehouse will be and what measures companies need to take to meet forthcoming requirements W R I T T E N B Y: D A R R E L W I L L I A M S

12

October 2014

13

TECHNOLOGY

B2C worldwide e-commerce sales will reach $1.471 trillion in 2015 Not so long ago the warehouse or distribution centre was little more than a huge shed, where the warehouse manager’s role was that of a facilitator of the distribution process.

Now it sits at the hub of any retail operation. It’s where the battle for business is fought; rather than on the shop floor or website. Why? Because these days price, service and value are pointless without stock visibility 14

June 2015

and availability. Today the warehouse manager is often key to the strategic planning process of the entire business.

The reasons for this are increasing all the time. According to figures from eMarketer, B2C worldwide e-commerce sales will reach $1.471 trillion in 2015, an increase of 20 percent over the previous year. Although this trend will almost certainly continue, bricks and mortar shops seem unlikely

S A T ETLHLEI TFEU N TU AV R IEG O A TF I O TH N ET W E CA H RN EO HO LO UG SY E

to disappear altogether. Instead they may become leisure destinations designed to engage and immerse customers in the brand.

Dovetailed with this is the rise and development of ‘click and collect’ a term that was almost unheard of a short while ago, but now it rolls off the tongue like any other everyday expression, such is the current speed of change.

So how do retailers and other

warehousing and distribution businesses cope with this shifting landscape? It’s clear that flexibility is paramount. So it means investing in light, agile and scalable forms of technology, but also investing in the workforce. Despite the move towards automation in some areas, many other businesses are discovering that people are still the strongest, and also the most adaptable resource ever.

15

TECHNOLOGY

People are still the strongest and most adaptable resource ever

A case of location, location, location?

Multi-channel buying patterns, high SKU churn and fluctuating business volumes mean that the one huge repository dedicated to single product lines is no longer adequate.

Consequently, warehousing and distribution are becoming more complex and fragmented to mirror this.

Of course the exact template for 16

June 2015

this depends on the product and its life-cycle. Fresh produce needs to be housed close to its market, but for some non-time dependent products such as white goods, it’s a delicate balance between speed and costs.

Dark stores and small satellite distribution centres are filling this gap to a certain point, however the landscape is changing. Click-andcollect and indeed an increasing

THE FUTURE OF THE WAREHOUSE

amount of online B2C business being fulfilled from a retail outlet (shop floor or back of store) as opposed to a distribution centre, which further emphasises the need for agility and enterprise visibility. It’s also increasing the pressure on the ‘back room staff’ to execute faster to shorten fulfilment times even further and promise a sub 24-hour service.

No wonder more and more retailers are turning to 3PLs to create innovative solutions to help address this challenge.

3PLs: The pressure to deliver Increasingly 3PLs are expected to be centres of excellence, bringing gamechanging solutions to a contract. It’s true that the very nature and focus of their business means they are able to run a more dynamic operation,

‘B2C worldwide e-commerce sales will reach $1.471 trillion in 2015, an increase of 20 percent over the previous year’

segmenting and sharing shelf space across multiple clients giving them the flexibility to utilise their capacity.

But, let’s not underestimate the planning and forecasting headaches involved here.

The level of innovation required to be successful takes both time and money.

Yet, at the same time, contract lengths are getting shorter. Historically terms of up to ten years were commonplace, this has shortened over the years to terms of 3-5 years but today they can be as brief as six months.

Such complex operations need optimised, yet standardised processes to manage all these scenarios (different customers, multiple products (with varying sales volumes) differing materials handling, various health and safety needs) and all in one concurrent workflow whilst offering real Value- add services.

Flexibility is paramount People remain at the forefront of the solution. Staff who are equipped with one technology which can be used for any customer, any product and in multiple locations and environments.

It shouldn’t matter whether the product is heading for a shelf in a 17

TECHNOLOGY retail space or into a bag or box, to be collected outside in the car park or couriered to its destination. If the same processes and interface can be used in any situation, by any member of staff, it will provide the flexibility demanded in today’s supply chain.

However let’s not forget that whilst the execution would be satisfied with this technology the businesses demand so much more, this solution must also give warehouse managers, analysts, buyers and consumers transparency and control. It comes down to agility, speed and clarity.

‘Most businesses caught up in the maelstrom of today’s markets, recognise that humans can be far more adaptive and, when looked after, and motivated, will do a far better job.’

18

June 2015

Where’s the smart investment – man or machine?

A few years ago budgets were often being spent on automation. Whether the story about Amazon investing in drones to actually fly through the air and deliver to customers will actually come true, it is yet to become clear.

But the online megastore certainly introduced robots into some of its warehouses to fetch stock for its workers to select from.

However, this idea didn’t appear to catch on with only a few implementations across all of Northern Europe, although it’s not clear whether

S A T ETLHLEI TFEU N TU AV R IEG O A TF I O TH N ET W E CA H RN EO HO LO UG SY E

Warehousing will become even more of a pivotal topic at board meetings it was due to the capital cost, the results and ROI, or perceptions around suitability and social impact –Automation may be applicable for businesses with predictable levels of businesses, largely standardised SKU’s and limited exposure to trends but few will be prepared to wait for at least a decade for a return on their investment.

Most businesses caught up in the maelstrom of today’s markets, recognise that humans can be far

more adaptive and, when looked after, and motivated, will do a far better job.

With the right tools, they can execute nigh-on perfectly every time. You can’t build on automated systems in the same way, which means there’s problems if anything changes, which of course it will.

One thing is for sure, warehousing and distribution will become even more of a pivotal topic at most board meetings going forward.

19

TOP 10

N O C

l a e k a We t of c h clutc

20

December 2014

0 1 P O T ATES R E M O L NG

se r e v i td s o m nd a t s e g rld g i o b w e e t th es in th a k RMY E o J t lo M era T E N B Y : S A m o l WRIT cong

21

TOP 10

Captionhas Maersk to the a vast image array of divisions throughout the group, mainly involving tr THIS MONTH, WE thought it a good time to explore conglomerates that have an interest in the supply chain and logistics industry. Whether that be the entire or main focus of the group, like the world’s largest parcel courier Deutsche Post DHL, or those business interests confined to one or two particular subsidiaries like Hitachi or Swire Group.

The official definition of a conglomerate is a corporation made up of a number of seemingly unrelated 22

June 2015

businesses engaged in various areas that fall under one overall corporate group, usually involving a parent company and many subsidiaries.

Each of a conglomerate’s subsidiary businesses runs independently of the other business divisions, but the subsidiaries’ management reports to senior management at the parent company.

Some of the best examples of a conglomerate engaged in supply chain

F E A T U R E A R T I C LTEO S P H1O0 RCTO ENG ED L OHME EARDALTI N ES E

ransportation subsidiaries and logistics-related activities are included in our list. Take the A.P. Moller– Maersk Group for instance, also just known as Maersk; has a remarkable and vast array of different divisions throughout the group. These mainly involve transportation subsidiaries such as Maersk Line, Safmarine, MCC Transport, Seago Line and Damco as well as energy-related ones like Maersk Oil, Drilling, Supply Service and Maersk Tankers all across the globe.

With Deutsche Post DHL, the German conglomerate has an almost complete monopoly on the letter and parcel delivery industry, especially in Europe. That could be about to change with FedEx muscling in on the market and buying out TNT Express for a whopping â‚Ź4.4 billion, but for now DHL has divisions in supply chain, freight forwarding, mail and express services. Continuing on the theme of German dominance, Deutsche Bahn 23

TOP 10

COSCO calls at over a thounsand ports worldwide is described as the second largest transport company, owned by the Federal Republic Government and is sprawled across many subsidiaries such as Arriva and DB Schenker.

Looking away from the Europeancentric conglomerates, the likes of Swire Group is an extremely diversified conglomerate with extensive roots in the Asian and Asian Pacific regions due to the group’s long and rich 200 year history. It is the 24

June 2015

largest shareholder in Hong Kong’s largest airline, Cathay Pacific and has many divisions dedicated to marine services such as subsea engineering and deep water salvage.

Shifting eastwards slightly, the Indian multinational conglomerate Essar Group has vested interests in shipping, ports and logistics as well as Oil & Gas and with a revenue of $39 billion the group seems to be doing very well indeed in those areas and

T O P 1 0 C O N G L O M E R AT E S

more. The company has been steadily building a cargo handling capacity (dry, bulk and liquid cargo) of over 190 million tonnes.

When it comes to shipping it would be hard to forget China Ocean Shipping Company (COSCO) as it has over 13 vessels and calls at over a thousand ports worldwide. Another government-owned entity, COSCO is a conglomerate that is not going to be waning anytime soon.

Amazingly, Hitachi is a conglomerate that in itself is owned by a wider ‘super conglomerate’ called the DKB Group which has truly eye-watering revenues in the region of 150 trillion Yen. Hitachi has a huge assortment of subsidiaries, not least in the rail and logistics industries. Scanning back over the Middle East now, and Dubai World was a conglomerate that stood out for us at Supply Chain Digital. Although the overarching group is an investment company, its impressive portfolio of subsidiaries include DP World which owns more than 65 marine terminals in six continents across the globe.

Another subsidiary in the Dubai World enclave includes P&O, a company that operates ferries to a range of European ports, including the strategically

important Dutch ports.

Talking of Holland, SHV Holdings is another name that made it onto our global list of conglomerates. It is regarded as one of the world’s largest trading groups and although is very involved in power and energy sectors, it also owns Mammoet; a specialist heavy lift and transport company. Rounding up our list of Top 10 conglomerates is Eurotunnel, not just because it provides us with a rail route out of England! Eurotunnel is the parent company of GB Railfreight; and CEO John Smith wrote an exclusive article about the state of logistics for us. The conglomerate also owns Europorte and MyFerryLink.

SHV Holdings also owns MyFerryLink

25

MOMENTIVE PERFORMANCE MATERIALS

Going with the flow Written by: John O’Hanlon Produced by: Richard Durrant

27

M O M E N T I V E P E R F O R M A N C E M AT E R I A L S

Momentive Performance Materials Inc. (Momentive) is a global leader in silicones, quartz and ceramics, with a 70 year heritage of being first to market with performance applications for major industries that support and improve everyday life: we took a look at how supply chain excellence underpins its global manufacturing best practices.

28

June 2015

L

ess than a year after the global silicones, quartz and ceramics specialist Momentive Performance Materials Inc. (Momentive) filed for bankruptcy, saddled by corporate debt it could no longer service, a leaner and fitter company has emerged. A balance sheet restructuring plan eliminated more than $3 billion of debt: now instead of having to find $345 million in interest payments every year, it now faces a $50 million bill, which is well manageable given Momentive’s level of annual turnover, in the region of $2.6 billion.

For William Duty, Director of Momentive’s Supply Chain Center of Excellence, the last year has been like a release after a period of confinement. Billy Duty has more than 20 years of supply chain experience under his belt, during which time he has passed through seven mergers or acquisitions, so he is no stranger to corporate change. He has been working in silicones since 1994, not long after the $300 million acquisition of Union Carbide’s silicone business by DLJ Merchant Banking Partners L.P. After going through the GE acquisition of Crompton’s silicone division, he stayed with the business as Director of SIOP (sales, inventory and operations planning) when it was spun off by GE to Leon Black’s Apollo Global Management LLC to form Momentive in 2007. In 2010, there was further adaptation as Momentive was combined with another Apollo-owned company, the specialty chemicals company Hexion, and then last year’s post Chapter 11 decoupling

EUROPE

Momentive’s global footprint

from Hexion and corporate restructuring.

Following the restructuring, Apollo, though it remains at about 40 percent the largest single shareholder, no longer has the majority share in Momentive, and Hexion is again a separate company with its own board and CEO. Momentive has what Duty refers to as an older style footprint; the three biggest of its 23 global manufacturing plants are respectively located in Waterford in upstate New York, Germany and Japan. None of these has any advantages of low cost labor or cheap utilities.

Newer plants have been built strategically in China, Thailand and India, but for the time being the lion’s share of production comes out of relatively high cost manufacturing locations.

One of the challenges for supply chain

William Duty, Director of Momentive’s Supply Chain Center of Excellence

w w w. m o m e n t i v e . c o m

29

MOMENTIVE CHEMICALS

Are you achieving these best-in-class goals at your plant?

Maximizing Prime Production Plants operate at full capacity to increase profitability.

Minimizing Downtime Avoid lost production with assigned dollar values.

Optimizing Product Wheels Improve specific sequences for making products.

Learn how scheduling technology from AspenTech can help at: www.aspentech.com/Exec-Briefing-5-Signs-Optimization.

30

June 2015

Reducing Off-Spec Product Minimize output during transitions that is lower grade than normal.

EUROPE

management is the very large number of different customers the company serves and the wide variety of products it sells into a range of industries. “No single customer provides us with more than three percent of our revenue,” says Duty. “We touch a little bit of everything!” The largest customer industry is consumer goods, where Momentive’s silicone elastomers products provide heat resistance, flame retardancy and moisture/dirt protection, for everything from bakeware and kitchen utensils, to keypads and infant care products.

Tire manufacturers use a lot of Momentive’s technology and patented NXT* silanes, which can help manufacturers improve tire rolling resistance and traction while improving wear by enhancing the coupling of silica to tire tread. Currently,

SUPPLIER PROFILE

“No single customer provides us with more than three percent of our revenue” – William Duty

ASPENTECH

AspenTech is a leading supplier of software that optimizes process manufacturing and engineering across oil and gas, chemicals, polymers, pharmaceuticals and other industries that manufacture and produce products from a chemical process.

With integrated aspenONE® solutions, companies across the process industries can implement best practices for optimizing supply chain operations. As a result, process manufacturers can achieve supply chain efficiencies, navigate supply chain complexity, and improve the visibility of plans and schedules, all while reducing costs and sustaining commercial excellence. www.aspentech.com/products/aspenONE-Supply-Chain-Management

w w w. m o m e n t i v e . c o m

31

M O M E N T I V E P E R F O R M A N C E M AT E R I A L S

Sisterville site

32

June 2015

EUROPE

new production expansion is being planned to double supply capability of these products.

The quartz side of the business produces high purity fused quartz and ceramic materials that go into semiconductors, lighting and consumer electronics. Now free from the burden of debt, the company has money to invest, and upgrading the plants and equipment as well as growth will be a priority. The efficiencies this will deliver will go straight to the bottom line and rapidly turn Momentive into a larger more profitable organization, Duty predicts.

However, for now he is very much tied up with transforming the supply chain function throughout the company. Before the combination, Hexion had invested heavily in supply chain tools and expertise. He was able to bring these across, including a team of people thoroughly versed in the tools used within the 15-strong Momentive Supply Chain Center of Excellence that he now heads.These are the people who carry out advanced scheduling, planning, and linear programming work, alongside core process experts responsible for supply and demand planning.

This team works globally and is hired globally.

Its most recent addition was hired in Japan where an advanced scheduling implementation is underway, and someone who could speak the language was needed on the ground. Every region has its own challenges, he says. “One good thing that we started a couple of years

‘Now free from the burden of debt, the company has money to invest, and upgrading the plants and equipment as well as growth will be a priority.’

Growth is now a priority to Momentive Chemicals

w w w. m o m e n t i v e . c o m

33

M O M E N T I V E P E R F O R M A N C E M AT E R I A L S

Momentive RTV162 Silicone One Part Epoxy Paste

ago was overhauling our demand planning.

Then we went into our inventory analysis, and then we moved on to scheduling and advanced strategies. Because our business is very global and very complex, we are getting a lot of value out of having the right toolset, which is something we did not have in the past.”

Strategic planning used to be a headache.

The ideal was to keep a rolling five-year program looking at each of the global assets. “Until last year that exercise was done via spreadsheets and it would take months of work just to prepare them, and very little analysis was possible. Last year we used Arkieva’s planning model which

Data to Decisions. Faster.

Congratulations

to our client Momentive and William Duty on their supply chain planning success

Arkeiva

The The giant giant Kibali Kibali mine mine in in the the DRC DRC has has poured its first poured its first gold, gold, marking marking Randgold’s Randgold’s next next big big step step towards towards sustainably sustainably profitable profitable growth. growth.

Taking the next

BIG STEP Arkieva’s software solutions enable global supply chains to profitably plan demand, manage inventories, dPA5734 dPA5734

optimize supply, and schedule production.

www.arkieva.com | info@arkieva.com | 302-738-9215

34

June 2015

LSE LSE :: RRS RRS •• NASDAQ NASDAQ :: GOLD GOLD www.randgoldresources.com www.randgoldresources.com

EUROPE

enabled us to generate literally hundreds of different scenarios, and at the touch of the button see what the effect of each of those would be on our asset base.” At last, it was possible to drill down into the results, and test the outcomes of different actions in real time. This was no plug and play exercise though, he cautions: “It took us many months to get the model right but now there’s really no limit to what we can do with it.”

“Now the supply chain team is taking on another challenge: the plant by plant implementation of the Global Supply Chain Scheduler (GSCS), based on AspenTech’s Aspen Plant Scheduler™ family of products.”

“We are over half way through the program now. By using the AspenTech tool and being able to build the logic into the tool from countless interviews with the scheduler, we have been able to generate a lot of value at our plants: minimizing changeovers, reducing inventory because of a better sequence plan, and gaining better visibility.” He hopes to finish at the end of this year or early 2016.

Implementation is a painstaking process.

The schedulers start by assessing the flow of materials at the plant, the machinery, and the constraints within the entire facility. “We have to do a lot of interviews! When we have all that information, we come away from the site and the technical guys set about preparing the scheduling model. Once we have a decent solution we will go back on site, review the

RTV product range

Momentive RTV103 2.8oz One Part Acetoxy Cure RTV Silicone Adhesive

w w w. m o m e n t i v e . c o m

35

M O M E N T I V E P E R F O R M A N C E M AT E R I A L S

“We have been able to generate a lot of value at our plants: minimizing changeovers, reducing inventory because of a better sequence plan, and gaining better visibility” – William Duty, Director of Momentive’s Supply Chain Center of Excellence

Example: Arkieva view of how inventory has changed 36

June 2015

solution with the key people there and refine it some more.” Following some more fine tuning the team returns to the site to do the detailed training, start to use the tool, leaving some team members on site to support, measure, and make sure the process is working as it should.

At first, he says, one site was tackled at a time, but now they are doing two at a time. “In the last month we went live in Germany and in Florida and started the process in Brazil and Japan too.

We are a lot faster now. At the beginning the

EUROPE

team was new and they had to learn the process, but we devised the plan in such a way that we could learn as we went.” There is a good reason why twelve plants were done ahead of Japan, he adds: “I wanted to make sure the team had seen all the different types of assets they would encounter in the large Japan facility before they got there - I didn’t want that to be their first time!”

New products are constantly coming out of Momentive’s R&D laboratories, and NPD will benefit as much as the facilities from the cash that can now be devoted to this vital function. One major trend in the market is the use of silicones in medical applications. Silicone is used in catheters and tubing, transdermal drug delivery, skin adhesives, and other equipment, and performs better than many other elastomers. According to a recent report, the rapid growth of the end-user markets is one of the factors contributing to the growth of the global silicones market. And the construction and automotive sectors are growing rapidly in emerging economies such as China and India, where silicones are used for various applications such as sealants and adhesives, product areas where Momentive excels.

As more applications emerge, supply chain complexity increases, and planning and scheduling functions become more important.

The rebirth of Momentive has started well, but future expansion will depend heavily on its success in keeping cost out of the supply chain.

Company Information INDUSTRY

Performance Materials HEADQUARTERS

Waterford, USA FOUNDED

2006 EMPLOYEES

5,000 REVENUE

$2.6 billion PRODUCTS/ SERVICES

Silicones, Quartz, and Ceramics

w w w. m o m e n t i v e . c o m

37

The UK’s National Treasure Written by: John O’Hanlon Produced by: James Pepper

39

T H E R O YA L M I N T

The Royal Mint is an ancient institution evolving into a modern commercial operation, moving into retail operations and introducing up to the minute supply chain solutions

40

June 2015

T

he Royal Mint as companies go, is quite a well-established institution. 1,129 years to be precise, since it was established under Alfred the Great. Until very recently it operated as an office of the Crown, having grown with the expansion of the British Empire, making coins for a good proportion of the world and more recently contracted by many independent countries.

In 2010, however, it was decided that the Mint should be structured in a way that would allow it to make the most of the many opportunities it has to add value to its core business of striking coin. It ceased to be an executive agency and its assets were vested in a limited company Royal Mint Ltd owned by The Royal Mint Trading Fund, itself wholly owned by HM Treasury.

It was a time of radical change for the Llantrisantbased manufacturing operation. After all there can have been few business transformation challenges to compare with that of morphing a thousand

EUROPE

Royal Mint Engraver Jody Clark touches his sketch of the Queen’s head

year old national institution into a modern manufacturing operation (though to be fair that process had been started back in 1968 when the Mint moved to a purpose built facility in Wales better able to cope with the demands of decimalisation). A new executive team was formed. The current CEO Adam Lawrence was appointed at the beginning of 2009, however some six months before vesting David Bowles was brought in to facilitate the transition as Head of Project Management. Today he is

aRMour blanks

w w w. r o y a l m i n t . c o m

41

R O YA L M I N T

42

May 2015

T H E R O YA L M I N T

EUROPE

Director of Supply Chain, and the job has, he explains, demanded all the expertise in operational excellence and process planning he has gained in a career spent mainly in the steel industry.

The work of the Mint is, of its very nature, unpredictable and variable. There are three sides to the business; circulating coins (the production of all the UK’s currency requirements under an exclusive contract with the Treasury as well as contracts with overseas governments); commemorative coins; and bullion. Commemorative issues for special events are a growing line. Events of national importance are usually marked by the issue of a special coin like the £100,000 one kilogramme gold coin designed by Sir Anthony Caro for the 2012 Olympics. Though legal tender, none of the 60 people who bought the limited edition are likely

SUPPLIER PROFILE

Inside the Mint

PAMP

As the leading bullion brand, and one of the most trusted refiners and fabricators of precious metals, PAMP offers products and services spanning the entire precious metals chain, from production to sales and financial services.

Tel +41 91 695 04 50 Fax +41 91 695 04 51 Email info@pamp.com Website www.pamp.com

w w w. r o y a l m i n t . c o m

43

T H E R O YA L M I N T

“A huge change process went across the whole organisation. It started from how we take orders in, and went right through how we plan and schedule” – David Bowles, Supply Chain Director

44

June 2015

to go into a shop with it as its value lies mainly in its rarity. The latest commemorative coin on offer is a limited edition Alderney £5 Platinum Proof coin to commemorate the 70th anniversary of VE day.

From a supply chain point of view it is clearly easier to plan for events like these than, say a royal birth. However there is an element of predictability in commemorative coins that is lacking in circulating coins, which are tackled on an order by order basis. Nevertheless all sides of the business are growing strongly. In 2013/14 more than two billion circulating coins were delivered to UK distributing banks and the Post Office. in 2009 the Treasury decided to convert from solid cupro nickel in the smaller denomination coins to plated steel using the

EUROPE

Mint’s proprietary aRMour technology. This concept has been sold to many overseas countries, with the Mint notably securing a three year contract with the National Bank of Poland to supply three aRMour brass plated coins. These coins are much more economical, and just as durable as the ones they replace.

In an environment of dynamic sales activity, David Bowles has had to lead a complete transformation in the supply chain function.

“When I came to this business there was a lot of unpredictability in the planning, the production and the procurement too. We have put in some really robust planning systems now that mean we can have a really predictable supply chain with our suppliers.” Already, he said, the visibility in the supply chain has improved to the extent that he can discover in real time what coin is being created and on which machine.

To reach that level of predictability entailed changing the culture of the organisation as well as its processes. The incoming team brought with them ideas from the world of industry, and above all a common approach as to what it takes for a manufacturing business to be effective. “Just as an example, in the circulating coin business there was about 2,000 tonnes of work in process at any one time. Now we operate with about 300 tonnes of wip.” Taking working capital out of the process is not a new thing, he appreciates, but at The Royal Mint the established way of operation simply did not take working capital into account.

Key Personnel

David Bowles Supply Chain Director Joined the Royal Mint in 2009 after spending 10 years in the Steel industry, mainly in Supply Chain related roles. Holds an MBA in Supply Chain Management from Cardiff Business School.

w w w. r o y a l m i n t . c o m

45

T 01443 841166 F 01443 841327 ken.bell@zenpak.co.uk www.zenpak.com Zenith Print and Packaging • Gellihirion Industrial Estate Treforest • Pontypridd CF37 5SX

Warehousing and Distribution

01443 887866 info@k1logistics.co.uk

Transport • Haulage Storage • Warehousing SunHouse • Unit 9 • Llantrisant Business Park • Llantrisant • CF72 8LF

T H E R O YA L M I N T

EUROPE

Changing that may seem obvious but it was certainly not easy. “A huge change process went across the whole organisation. It started from how we take orders in, and went right through how we plan and schedule, through to how the manufacturing processes are organised and managed.” All of this has been changed over the last five years, but continuous improvement is a never ending process, he emphasises. A huge step forward may have been taken but there remains a lot more to do.

Bowles’s remit combines operational excellence on the shop floor with business excellence in the back office. “Our big driver is to get everyone involved in continuous improvement, and so far we have been really successful in getting everyone in the business to ask the question ‘how can we do better?’ Managing risk and unpredictability is one challenge we have met head on.” A great deal of effort has been put into planning. He has put a ‘rough cut’ capacity plan into effect, which looks at a multiyear rolling forecast. “We take all the countries we deal with and give them a ranking as to how likely they are to place an order and on what percentage basis. We can then use analytics to look at different scenarios that could arise.

Then we have sessions with the sales team to see where the gaps are, whether we are likely to be overloaded in certain months, or which customers we may have to move around.”

But there is a red line on meeting orders. The Royal Mint will never commit to a contract unless

xxxxxxxx

Proof in the detail

w w w. r o y a l m i n t . c o m

47

Jody Clark’s portrait of The Queen on tooling cutter

48

June 2015

T H E R O YA L M I N T

EUROPE

it is certain it can fulfil it. That means securing the materials that will be needed, an additional challenge, as risk aversion is part of The Royal Mint’s ethos. This means that even if there is an opportunity to buy forward at favourable rates it will always relate procurement to orders in hand. The principle is sound: we wouldn’t expect a company that is publicly owned to engage in speculative buying in today’s fluctuating metal markets, risking spectacular losses. However he can see the principle being tempered by sound procurement practices to some extent as time goes on. Basically precious metals would still be bought at spot prices to lock in cost and pricing of individual orders, but base metals like steel, nickel and copper could be bought further ahead than they are now.

As one would expect, process optimisation is a priority. Planning must be built around constraints in the process, and one that has been identified is in the presses. These are the machines we think of when we talk of ‘striking’ a coin or a medal, stamping the head and the tail. “At present we are able to plate more blanks than the presses can stamp, so we are involved in an exercise to see how we can increase capacity by operating the machines differently and improving efficiency without having to buy more presses.” A good illustration of how the ancient craft of coining throws up exactly the same problems as might face a manufacturer of car parts!

So five years down the line, how does he evaluate the supply chain processes at The Royal

“At present we are able to plate more blanks than the presses can stamp so we are involved in an exercise to see how we can increase capacity by operating the machines differently and improving efficiency” – David Bowles, Supply Chain Director

w w w. r o y a l m i n t . c o m

49

T H E R O YA L M I N T

Precision measuring and monitoring ensure consistency in coinage

50

June 2015

Mint? “We think we have the business down to a stable enough level, and the processes robust enough, to actually implement a full ERP system now,” he said. The system that has been selected for this venerable business is Microsoft Dynamics AX, and though the process is still at the design stage at the time of going to press, it is on the edge of full implementation and will go live by the end of 2015. AX has the qualities that Bowles needs to connect the business from manufacturing to procurement to sales. “We couldn’t have done this a couple of years ago.

The processes were not robust enough. I predict a few challenges but nothing we can’t handle

EUROPE

and I can see fantastic opportunities down the line to do much more work with our suppliers. It will facilitate integration with their own systems, and a greater level of catalogue buying and even supplier controlled inventory, refinements not supported by the legacy MRP system.”

Having replaced the UK’s 5 and 10 pence pieces, the Mint is now preparing for its next big job, upgrading the flagship coin of the United Kingdom: 2017 sees the launch of a new £1 coin.

For the Mint this entails taking around 1.6 billion old coins out of circulation and replacing them with new ones in very short order. Designed by a talented 15 year old (and to those who can remember remarkably like an old threepeny bit) this is a high tech coin that incorporates the ultimate in security, a new high security feature perfected by The Royal Mint.

With electronic readability and specialised plating even apparently simple coins are turning into complex manufacturing. “It is the most secure coin ever produced, with the latent security features that are going into it. We are excited about it but it is a big supply chain challenge,” said Bowles. It is not the only one though. Next year a visitor centre, with catering facilities, exhibitions, interactive displays and even tours round the Mint will be opened at Llantrisant. Given the mystique surrounding The Royal Mint it will doubtless attract millions. “It will be a big success and another challenge for my team. We have not been involved in retail but now we will have a shop to stock!”

Company Information INDUSTRY

SUPPLY CHAIN HEADQUARTERS

Llantrisant, Wales FOUNDED

886 AD EMPLOYEES

1000 REVENUE

£260 million PRODUCTS/ SERVICES

Coin and medal manufacturing

w w w. r o y a l m i n t . c o m

51

DRIVING PASSION: warehousing wisdom Written by: John O’Hanlon Produced by: Heykel Ouni

53

A L D R E E S P E T R O L E U M & T R A N S P O RT S E R V I C E S C O .

Aldrees is organized in two major divisions; the Petroleum Services Division and the Transport Services Division. The former owns and operates 478 petrol stations right across the kingdom, and is the retail arm of the business.

T

he Transport Services Division is one of the major customers as well as one of the principal service providers to the retail side, but operates as an independent company. It is one of the largest logistics provider in the country – and currently very much in expansion mode.

Mohamed Yousri Hanno is Assistant General Manager of Aldrees Transport Services. The company is involved with local freight deliveries, as well as deliveries to GCC & Middle East countries, he explains. With 1,340 tractor units and more than 2,700 road trailers in a huge array of different specifications, its primary concern is the movement of bulk cargoes between the kingdom’s industrial and petrochemical complexes, and its ports on the Red Sea to the Mercedes tractor units

54

June 2015

MIDDLE EAST

west and the Arabian Gulf to the east. “ To give a flavour of the size of the operation it is worth looking at some of the major contracts Aldrees services. The largest customers include Saudi Arabia’s leading petrochemical company SABIC, for which Aldrees transports liquid chemicals in stainless steel tanks and solid petrochemicals like polypropylene, polyethylene and PVC in bulk and bags, and the minerals group Maaden whose product includes sulphuric acid at 98 percent concentration as well as phosphoric acid and caustic soda – hazardous chemicals that require stainless steel and rubber coated tanks. Aldrees also undertakes transportation of Maaden’s oil supplies and moves minerals like copper, gold and zinc in containers to Jeddah port for export.

A new product line for Aldrees recently has been the transportation in tipper units of the refinery SATORP’s by-product of pet coke to Jubail Industrial Port, part of an ongoing expansion of the relationship between these two companies. For the National Industrialization Company Tasnee, a demanding new departure is transporting butyl acrylate in special insulated stainless steel tanks, again to Jubail Port.

Cement is an important export commodity for Saudi Arabia, and Aldrees is involved in moving Northern Cement Company’s product in bulk to their customers all over the kingdom as well as keeping the cement plant supplied with petrol, diesel and HFO, which calls for specialised

CEO Engr. Abdulilah Saad Aldrees

Assistant General Manager Eng. Mohamed Yousri Hanno

w w w. a l d r e e s . c o m

55

www.petromin.com

MIDDLE EAST

insulated and heated tanks.

Other tasks include moving ilmenite and coke in bulk from Jazan Port to the National Titanium Dioxide Company’s plant 100 kilometres from the coast and bulk sugar, liquid sugar and molasses to customers of United Sugar Company (Savola) in Jeddah & Riyadh. For the Grain Silo & Flour Mill Organization imported wheat is moved from Dammam Port to the silos in Dammam, Madinah & Tabuk. And let’s not forget the product that built modern Saudi Arabia - for Petromin and Shell Aldrees is trucking base oil from Jeddah, Yanbu & Dubai to blending plants in Jeddah & Riyadh, and finished product in bulk and drums to these customers’ clients.

As we mentioned earlier, a really important customer is Aldrees Petroleum Services

SUPPLIER PROFILE

Finance Manager, Mr. Roberto Rasco

PETROMIN

Aldrees group & Petromin has a long-standing partnership in different fronts. In logistics division, the efficient fleet of vehicles operated by Aldrees are powered up by High Performance Petromin Engine oils. Petromin lubricants provide ultimate protection, reliability and top tear performance on long routes and in most stringent of environmental conditions. www.petromin.com

w w w. a l d r e e s . c o m

57

A L D R E E S P E T R O L E U M & T R A N S P O RT S E R V I C E S C O .

Dispatch yard

“At the click of a mouse we can tell the wear condition of that tyre, the mileage it has covered and which axles it has been fitted to.”

– Mohamed Yousri Hanno, Assistant General Manager

58

June 2015

Division, for which the Transport Division delivers petrol and diesel to every one of the 478 filling stations in 200 dedicated tankers in Aldrees livery. “We make almost 12,000 trips monthly for the fuel stations! They are one of our biggest customers, and of course we are one of theirs because we buy our diesel from them.

We win both ways. We buy the fuel from them and they buy the transport service from us.

The entire fleet consists mainly of Mercedes units, though 24 percent are supplied by Volvo and six percent by MAN. These operate out of six strategically situated depots Riyadh (the head

MIDDLE EAST

office with a 100,000 square metre warehouse); Jeddah, Dammam, Yanbu, Jazan, Haditha on the Jordan border; and Jubail. “Each of the facilities is run by a branch manager with full autonomy, and has its own maintenance facility for the trucks. Naturally they all have their own dispatch facility, plus accommodation for the operations, administration and maintenance staff and drivers.

And they are all stocked with the spares needed to keep the trucks on the road.�

While the trucks are regularly updated with the latest fuel efficient models, diesel in Saudi Arabia is cheaper than anywhere in the world

Volvo tractor unit

w w w. a l d r e e s . c o m

59

MIDDLE EAST

except Venezuela. Unlike freight companies in Europe for example Aldrees does not see fuel as a major cost. Tyres are another matter. A little over two years ago, says Mohamed Hanno, the company contracted with Michelin to run its Tyre Management System. “We now have control of every tyre on every truck at any time. At the click of a mouse we can tell the wear condition of that tyre, the mileage it has covered and which axles it has been fitted to.” This is an effective way of ensuring safety while keeping tyre costs down – since the implementation of the system in 2012, he says, average running mileage has increased by around ten percent, and overall tyre costs reduced by a similar factor.

To keep its network working seamlessly, and to manage the complex truck movements, Aldrees developed its own enterprise system together with a sophisticated Transport Management System (TMS), says Hanno. “Right across company all our operations are linked together and all the data is transmitted on line – the orders from the customer either coming to head office or to the branches are constantly tracked and because we have GPS satellite tracking throughout our fleet, from the Riyadh control room we can monitor the trucks wherever they are operating, even outside the kingdom.”

Thus, with key costs under control and truck maintenance controlled by Aldrees’ own software a couple of key best practice boxes have been

“Each of the facilities is run by a branch manager with full autonomy, and has its own maintenance facility for the trucks.”

– Mohamed Yousri Hanno

Truck maintenance facility w w w. a l d r e e s . c o m

61

We proud to beto be Weare are proud associated with

associated with

silo trailers | tank trailers | rail wagons | containers Feldbinder Spezialfahrzeugwerke GmbH | GutenbergstraĂ&#x;e 12-26 | 21423 Winsen (Luhe) | Germany | Fon +49 (4171) 695-0 | winsen@feldbinder.com Sales Contact: Karsten Bergmann | +49 +49 (4171) 695-3444 | k.bergmann@feldbinder.com www.feldbinder.com

AAA FLEET TRUCK PARTS

AAA FLEET TRUCK PARTS

Your First Choice for Genuine Quality Parts

Your First Choice for Genuine Quality Parts

Now available solely to AAA in Saudi Arabia the complete range of punched technology batteries for European Trucks.

Made in Italy by Magneti Marelli.

Now available solely to AAA in Saudi Arabia a complete range of severe duty clutch products for European Trucks.

Made in Europe by Eaton Corporation

ftpparts@aaa.com.sa Or call us 920012011 visit our website at WWW.AAA.COM.SA

ftpparts@aaa.com.sa Or call us 920012011 visit our website at WWW.AAA.COM.SA

MIDDLE EAST

ticked. A third, vital to satisfying the OEMs and maintaining warranties, is the question of which oil to use in Saudi Arabia’s harsh conditions. After a long period of trialling approval was obtained from all three for engine oils developed by Petromin Corporation. This is consistent with Aldrees’ benchmarking policy, Hanno emphasises, which also dictates that all spare parts are sourced from the OEMs’ approved agents, in a market flooded by cheap replicated parts.

Just a year ago, there was a major change in the company’s centre of gravity when Aldrees opened its state of the art new depot in the fast expanding industrial city of Jubail. Because of its key location near to major clients, this is now

Aldrees can track its fleet anywhere in the world

Insulated mild steel tanker with heating burner for transporting Heavy Fuel Oil (HFO)

w w w. a l d r e e s . c o m

63

A L D R E E S P E T R O L E U M & T R A N S P O RT S E R V I C E S C O .

Alumium Tipping Bulker for transporting bulk polymers

64

June 2015

the most important depot for the division, but there are more reasons for that investment. “We have two terminals there, each 100,000 square metres in area,” he says. “One is for the Transport Division operations and the other for the joint venture we have set up with our Swiss partner Bertschi group. The company is called Aldrees Bertschi Logistics Services Company.”

Bertschi AG is a specialist in logistics and the transport of chemicals by ISO tanks on road, sea and trains in Europe, China and Singapore.

It should perhaps be explained that an ISO tank is a container built to the ISO (International Organisation for Standardisation) standard and designed to carry liquids in bulk. The frame which the tank sits in measures about 6 metres long,

MIDDLE EAST

2.4 metres wide and between 2.4-2.5 metres high. The tanks vary in size and type and can carry between 21,000 and 40,000 litres of liquid.

The new company will be engaged in providing chemical logistics, transport management, warehousing management, cleaning of chemical tanks and related services: it will be managed by a joined team from Aldrees and Bertschi.

Another partnership will see intensive development this year of a completely new line of business for Aldrees – outsourced warehouse management. One major contract already secured

by Aldrees together with South African logistics specialist Barloworld is to manage the warehouse operations of existing customer SATORP. “We hired the people and we’ve done thorough inhouse training in conjunction with Barloworld. We have a trained multinational workforce.”

This is just the beginning says Mohamed Hanno. “We have also started the quotations and tendering process for several offsite logistics challenges, such as hosting bagging lines and drumming lines in our facilities because many of the new companies moving into Jubail, like Sadara Chemical Company for example, which is constructing the world’s largest chemical complex ever built in a single phase in Jubail Industrial City, and Sipchem simply don’t have the warehousing space and are keen to outsource non-core logistics.” It is a great opportunity for Aldrees as Jubail and other industrial complexes in the kingdom continue to expand, he emphasises.

Company Information INDUSTRY

SUPPLY CHAIN HEADQUARTERS

Riyadh, Kingdom of Saudi Arabia FOUNDED

1962 EMPLOYEES

5284 REVENUE

2,144,322,070 Saudi Riyal PRODUCTS/ SERVICES

Retail Petrol sales & Transport Services

w w w. a l d r e e s . c o m

65

Suez Canal Container Terminal

Growing with Egypt

Written by: Nye Longman Produced by: Daniel Pritchard

S U E Z C A N A L C O N TA I N E R T E R M I N A L

SCCT is capitalising on its strategic location between Europe and Africa, and is leveraging investment to maintain its influence in the Mediterranean

68

June 2015

W

ith over $750 million invested, SCCT is set to become a key Egyptian shipping hub, with the capacity to successfully compete with any of the existing ports along the Mediterranean.

Initiated in 1999 and operational since 2004, 55 percent of the company is owned by APM Terminals, 20 percent by COSCO, 10 percent by Suez Canal and Affiliates and 5 percent by the National Bank of Egypt, with the remaining 10 percent share divided between Egyptian private sector investors.

Vital to Egypt’s growth Klaus Holm Laursen, Managing Director of SCCT highlighted that the terminal near Port Said is to play a significant role in Egypt’s future economic expansion. It will be crucial President Sisi’s economic plan to create the Suez Canal Zone: a long term infrastructure development that aims to increase trade and create hundreds of thousands of jobs.

The terminal plans to extend its capacity to exceed 5.4 million per year as part of its ongoing expansion efforts. Currently, SCCT has deployed 20 super post-panamax quay cranes, 58 rubber tyre gantry cranes (RTGs) 165 terminal tractors, and 59 spreaders.

Laursen added: “We are prepared for the huge levels of traffic that are commonly seen today. We have ordered another four of each crane, which has cost over $42 million. We

AFRICA

SCCT is set to become a key Egyptian shipping hub

will soon be receiving another five gantry cranes to increase our capacity.” These cranes can reach a height of over 40 metres, enabling them to meet the requirements of the world’s largest container vessels.

The Suez Canal is in a critical geographic location, providing the African continent with a direct trade route into Europe and the Middle East. Laursen acknowledged its importance, he said: “It would be truly devastating not to have access to our facilities; not only would costs increase for all those involved, it would also take longer for many goods to enter Egypt and the broader continent.” He also acknowledged that, despite its privileged geographic location, SCCT is in in a competitive environment, jockeying for position with other hubs such Jebel Ali, Alexandria, and Tunis, among many others dotted

SCCT’s tallest cranes exceed 40 metres which enables them to service the world’s largest container vessels.

w w w. s c c t p o r t s a i d . c o m

S U E Z C A N A L C O N TA I N E R T E R M I N A L

“The Suez Canal is situated in a critical geographic location, providing the African continent with a direct trade route into Europe and the Middle East” – Klaus Holm Laursen, Managing Director

70

June 2015

AFRICA

around the Mediterranean.

Tomorrow’s technology In such a competitive market, it is vital that SCCT stays ahead of the game; it is leveraging the latest developments in management systems technology in order to maintain its lead. Its successful implementation of the cutting edge Navis N4 Terminal Operating System (OS) is both timely and forward thinking. The new OS is innovative for its ability to integrate IT strategy and centralise back office operations; it also has the capacity for new technological additions further down the line due to its open architecture.

Laursen said: “It is the most advanced Operating System in the world. If you imagine that the container terminal was like a human body, it was like getting a new brain; before, we had a total of 53 systems running across the terminal.�

The Navis N4 OS has been rolled out across many terminals all over the world, but SCCT is one of the largest operations to do so. According to over three quarters of its customers surveyed, implementing N4 technology has improved both operational visibility and yard equipment utilisation.

Key Personnel

Klaus Holm Laursen Managing Director Klaus Holm Larsen has a degree in Accounting and Auditing from the University of Aarhus.

Before assuming his role as Managing Director of SCCT, he was a manager for PriceWaterhouseCoopers and has also worked at c-level positions within the port terminals industry, including Maersk, Aqaba Container Terminal, and APM Terminals.

Positive culture Working for a container terminal carries great responsibility at every level, which is why Laursen and his management team are keen to not only establish exemplary working practices, but also w w w. s c c t p o r t s a i d . c o m

S U E Z C A N A L C O N TA I N E R T E R M I N A L to create a positive culture across the business.

Perhaps it was this idea which led them to encourage workers to ask: “Why do I come to work?” He said: “We are trying to create a sense of ownership between our employees and the equipment they operate. An employee that owns his own cab looks after his own much more so than if it belongs to his employer; we have noticed that employees become much more observant and proactive maintaining it.” To ensure that this is reinforced, the company makes sure to provide performance related bonuses.

The culture of the SCCT workforce is certainly enviable, Laursen was keen to recognise how

OM FUTURE C

N PA

Y

Future Company is the main supplier for wire ropes and spare parts for container equipment Our proprietary and innovative German engineered rope designs deliver the highest level of performance and safety

Tel 0020572378153 Fax 0020572348153 Mob 00201005054059 futureco@internetegypt.com tahier05@hotmail.com Future Co • 4 Cornish El Nil • Damietta • Egypt

AFRICA

Suez Canal Terminal by night

well they could quickly adapt to the change to the N4 OS, he said: “We were impressed with how so many people could adapt all at once to do their jobs in a new way.” It is certainly a credit to both management and the company as a whole for 2,000 employees to be quickly adapt to the implementation of a radically modern Operating System.

2,000

Corporate Social Responsibility SCCT recognises that through a carefully executed approach, its growing operations can have a positive impact on both local communities and the environment. Laursen summed up his company’s attitude when he said: “We want to develop a good relationship with the community and we want to provide opportunities for local people.”

The number of staff the Suez Canel Container Terminal employs

w w w. s c c t p o r t s a i d . c o m

S U E Z C A N A L C O N TA I N E R T E R M I N A L

“The work of SCCT over the past decade has shown that continuous growth does not simply benefit the local community financially, but also instils skills and attitudes for life.� – Klaus Holm Laursen, Managing Director 74

June 2015

AFRICA

The company has realised its vision by providing education opportunities to local communities; it has entered into an agreement with the Egyptian Ministry for Education to fund the construction of a secondary school in Balouza village in the North Sinai Governorate.

SCCT is also keen to invest in the prosperity of future generations, creating roughly a hundred opportunities to become a through its partnership with the Port Training Institute at the Arab Academy for Science, Technology, and Maritime Transport (AASTMT). Laursen commented: “We wanted to help the local the community to provide for themselves; we provided them with fair pay and training, and even provided those that excelled with a job once the apprenticeship expired.”

Reducing its environmental impact has also been a top priority for SCCT. So far it has worked to recycle energy used in its cranes and use solar powered cells to heat much of the water used on site. Interestingly, the company is also exploring greening the surrounding desert to benefit the wider community.

The work of SCCT over the past decade has shown that continuous growth does not simply benefit the local community financially, but also instils skills and attitudes for life. This company’s critical position between three vast economic territories, alongside the diligent management of Klaus Holm Laursen and his team, will ensure that this model of shared success will continue for some considerable time.

Company Information INDUSTRY

Supply Chain HEADQUARTERS

Egypt FOUNDED

1999 EMPLOYEES

2,000 REVENUE

Not Disclosed PRODUCTS/ SERVICES

Shipping, Port Terminals, Supply Chain, Operating Systems

w w w. s c c t p o r t s a i d . c o m

NIGERDOCK

West Africa’s Leading Oil & Gas Services Company Written by: Sam Jermy Produced by: Richard Deane

77

NIGERDOCK The company, which is strategically located on Snake Island Integrated Free Zone in Lagos, focuses on upstream oil and gas services (EPC- Green&Brownfield Projects); Marine Services (Ship Repair & maintenance); Base Support services (Logistics, accommodation, catering, Real estate); Training and Development services (Welding, Fabrication, Machining, HSE, etc).

N

Meji Platform - Chevron

78

June 2015

igerdock is West Africa’s leading indigenous upstream oil and gas services company focused on Oil & Gas construction and marine services including offshore fabrication, ship building and repair, industrial training and specialised Oil & Gas and Maritime support. It is strategically located on Snake Island Integrated Free Zone, in Lagos, with immediate access to the open seas.

Snake Island Integrated Free Zone is a leading West African industrial development. Focused on Maritime and Oil & Gas Services and Operations, it offers tremendous opportunities for International Businesses to participate in Nigerian and West African Deepwater Projects.

The company said: “We lead the development of Nigerian content in our industries, achieve operational excellence and growth by

EXCELLENCE DELIVERED

Snake Island Integrated Free Zone

continuously training our workforce and investing in technological resources enabling us to deliver value to our shareholders, customers, employees and the nation.

“Nigerdock adds value to the Nigerian Oil and Gas and Maritime Industries and the Nigerian Economy by providing products and services to world class standards of safety quality and on-schedule delivery.”

Company Vision Nigerdock plans to create and operate a fully functional support centre to the Deepwater Oil and Gas Industry in Nigeria, through the active attraction of investment and creation of employment opportunities resulting from the progressive development of an efficient, secure,

“Nigerdock adds value to the Nigerian Oil and Gas and Mariitime Industries” -Nigerdock

w w w. n i g e r d o c k . c o m

79

About U

Wellmann gr shop supply Front end En Heavy lift, W out operatio competent p own and ope trailers(SPMT modular Jac

We Specialise In • • • • • •

Ballast Operations Heavy Lift Operations Modular Weighing & Jacking Marine Logistics & Cargo Barges Land Reclamation & Creek Improvement Front End Engineering Design

Our Partners

B

T 053-321788 F 053-321789 M 08023324933 info@wellmanngroup.com www.wellmanngroup.com

Us

roup offer a one stop y chain solution comprising ngineering and Calculation, Weighing, Jacking, Load ons utilizing skilled and personnel. wellmann also erate Self-propelled modular T),offshore barges, and cking and weighing systems.

Block 22 • N.P.A Housing Estate • Airport Road • Warri-Delta State • Nigeria

SUPPLIER PROFILE

THE WELLMANN GROUP The Wellmann Group evolved in 1991 as a result of successful completion of high profile projects in the Oil and Gas industry, utilizing the resources and expertise of local and international companies.

This evolution has resulted in the current group capacity to undertake major projects in Fronts end engineering, Heavy lift, Marine movement, Modular Jacking and Weighing System. Other members of the group are Pritod Construction, Brazerville International and limelight Entrepreneurs.

She owns and operates a vast fleet of self propelled modular trailers, offshore Barges, synchronized Jacking/Weighing System, Mooring Winches and Ballast pumps. The Wellmann Group have delivered on the following projects, to mention but a few are ; Chevron Agbami FPSO Project, Snepco Bonga FPSO Project, Chevron EGTL Project, Total Ofon Project, Chevron EGP3 Project, Total Usan FPSO Project, Shell Ovhor Concrete Barge Towage, ExxonMobil Satellite Field Project, Chevron Didbi & Olero Concerte Barge Towage and Total OWL Module Loadout etc.

CEO/Founder Chris iyovwaye is a graduate of international studies and diplomacy from university of Benin Nigeria. He hails from Delta State Nigeria and speaks English fluently.

Website: www.wellmanngroup.com

NIGERDOCK

EXCELLENCE DELIVERED

commercially effective support infrastructure, and its continued cost-efficient operation.

The organisation’s training school offers world class training of personnel in the fields of Welding, Pipefitting, Plating and Machining. The Training School has been selected as a centre in Nigeria for the training and certification of welders to International Standards. This programme is being coordinated by the Nigerian National Petroleum Corporation (NNPC) and actively supported by stakeholders in the Industry. It is part of the Federal Government’s Nigerian Content Development Policy for the Oil and Gas Industry.

“The Training School has fully equipped classrooms which can be utilised for most training requirements including Rigging, Safety,

“Nigerdock adds value to the Nigerian Oil and Gas and Maritime Industries and the Nigerian Economy by providing products and services to world class standards of safety quality and on-schedule delivery” – Nigerdock

Bonga FPSO - Shell

w w w. n i g e r d o c k . c o m

83

+234 (0)84-301-858 • +234 (0)803 500 6525 info@inspe

A ONE-STOP SHOP FOR ALL YOUR

TESTING & INSPECTION NEEDS

Core Values The ITL Brand is unique because we are a God-fearing people willing to go the extra mile any time, any day. We are resilient and adaptable to the needs of our client and show transparency with moral ethics in our business dealings. Above all we always put ourselves in our client’s shoes to better understand and meet his or her needs.

Km 1 Eleme-Onne Road • Off Eleme Junction Flyover • Opposite Bristow Quarters • P.O.Box 5

ectionandtests.com www.inspectionandtests.com

Who are we?

Founded in 1997 by seasoned professionals, INSPECTION AND TESTS NIGERIA LIMITED (ITL), an ISO 9001-2008 Certified Company, has become a topmost local brand with both an international outlook and a multinational reach – Ghana & USA, and various Nigerian branches.

testing to above 20,000 Psi, Post Weld Heat Treatment as well as Training and Manpower development in Welding Inspection and other Engineering Supervision scopes such as AWS, API & PCN Schemes & Welder Training to IIW Schemes under NIW

Multiplying her tentacles of services from quality control, quality assurance and non-destructive testing services to allied and complementary services in the oil, gas, marine and energy industries – including integrity assessment, technical integrity verification, blasting, painting and corrosion control services, lifting inspection, shop floor & expediting, PMI, OCTG Controls, testing & management, pressure

Our Destructive Testing Laboratory is in a class of its own and offers all that is needed to qualify both welder and procedure for any project scope and specification, manned by mature professionals operating up-to-date ultramodern equipment. Our personnel are trained to the best schemes and levels obtainable in the industry and we are proud of their tenacity of purpose and commitment to professionalism and ethics.

5064 • Port Harcourt • Rivers State • Nigeria

SUPPLIER PROFILE

INSPECTION AND TESTS NIGERIA LIMITED Inspection and Tests Nigeria Limited (ITL) is an ISO 9001- 2008 certified Company involved in Quality Assurance, Quality Control, Project Management, Technical Integrity Verification (TIV), As-Built Verification, Pre-Commissioning & Commissioning Inspection, Material Verification, Boroscopic Examination, Positive Metal Identification (PMI), Leak Testing, Tank Calibration & Measurements, Tank & Tank Floor Inspection, Valves inspection, Corrosion Mapping, Buried Lines identification, Pre & Post Weld Heat Treatment, Pressure Testing, Vacuum Box Inspection, as well as blasting/painting of facilities onshore/offshore.

We also conduct Lifting Inspection for Offshore Containers/accessories and handle Tubular (OCTG) management and inspection to relevant specifications. We carry out basic Nondestructive & Destructive Testing for onshore/offshore operations. Our NDT capabilities include Ultrasonic Flaw Detection, Industrial Radiography, Magnetic Particle Inspection, Dye ! Penetrant Inspection, etc while our Destructive Testing covers Charpy V-Notch, Bend, Tensile, Compression, Hardness, Macro & Micrography, etc.

COMPANY PROF We also conduct advanced inspection and testing services including AUT, PAUT, Eddy Current, etc.

We also conduct various Training and Manpower Development for the Oil, Gas, Marine and Power industries, including QA/QC management, API & NDT Training and Certification, and in collaboration with our Joint Venture partners. Welding Institute of UK (TWI), we conduct welding inspection training to internationally recognised certification. (CSWIP)

NIGERDOCK

EXCELLENCE DELIVERED

Adriatic VIII Refurbishment - Transocean

Quality and First Aid. It has the ability to train and test Welders in SMAW, MMAW, FCAW and TIG processes, in all positions and to any Client’s requirements whilst certifying to Lloyds, ABS and DNV standards. All trainees must attend a thorough induction program including basic safety and quality training.� the management commented.

Pipefitters and platers are trained in practical and theoretical fabrication techniques including manual and machine burning and cutting, layouts and fit-ups, auto-levelling, measuring, preparation methods and tacking.

Machinists are trained in manual and semiautomatic processes including detailed marking out, turning and screw threading on lathes, metal

Eiffel Living Quarters - Total

w w w. n i g e r d o c k . c o m

87

NIGERDOCK

1990-2015

POWER GENERATION, TRANSMISSION AND DISTRIBUTION

25

th

Anniversary

BUILDING SEVICES

M E P CONSTRUCTION

Devoted to the development and prosperity of NIGERIA WATER TREATMENT

HEAD OFFICE

8 8 March 2015 INDUSTRIAL PLANTS

Abuja 138 Aminu Kano Crescent, Wuse II, FCT Abuja, Nigeria Tel: +234 (0)9 461 1362 Fax: +234 (0)9 461 1364

Lagos 269B Kofo Abayomi Street, Victoria Island, Lagos, Nigeria Tel: +234 (0)1 271 4167 Fax: +234 (0)1 271 4168

office@energonigeria.com

www.energonigeria.com

NIGERDOCK

EXCELLENCE DELIVERED

joining through processes, machining of intricate components, sinking dies, cutting of Gears and machining of bushings and eccentric turning.

Atlantic Aviation Free Zone Enterprise is a Nigerian helicopter services company dedicated to providing safe and efficient aviation support by adhering to the highest standards of integrity and quality.

It is dedicated to serving Nigeria’s offshore oil & gas industry to provide transportation to platforms and other offshore installations, helicopter maintenance repair & overhaul, and Search & Rescue (SAR) operations.

Operations Nigerdock is the leading EPC (Engineering, Procurement and Construction) contractor,

Atlantic Aviation Free Zone Enterprise

SUPPLIER PROFILE

ENERGO

Energo Nigeria-Ltd. is a private, engineering & contracting company founded in 1990. Years of experience has taught us to be fast and agile, keen and smart to take chances and stand for what we believe in - Create value for all our stakeholders.Responding to the needs of electric-power providers, industries, Government and Public authorities in Nigeria and worldwide Address: Aminu Kano Crescent No.138, Wuse 2, Abuja Tel: +234 9 4611362 Fax: +234 9 4611364 Email: office@energonigeria.com

w w w. n i g e r d o c k . c o m

89

NIGERDOCK

West Africa’s Leading Oil & Gas Services Company

“We have the best Training School in the country constantly training the Offshore Welders, Grinders, Fitters, Blasters, Painters, Scaffold¬ers and Riggers to the highest levels” – Nigerdock 90

June 2015

specialised in the fabrication of topside mod¬ules, subsea manifolds, jackets, wellheads, satellites, process platforms, process piping, buoys, piles yokes, and double joints.

It also specialised in offshore installa¬tions of pipe spools, supports, platforms and heat shielding including pipe coating and the installation of MOV’s, flowmeters, P&T transmitters, and F&G detection systems.

Management said: “We have the best Training School in the country constantly training the

EXCELLENCE DELIVERED

25,000DWT Offshore Welders, Grinders, Fitters, Blasters, Painters, Scaffolders and Riggers to the highest levels. This attains the best capability and expertise that are required to deliver in accordance with international quality and safety standards. Our team is sprinkled with National and International expertise and experience deliver projects safely, on time and within budget. “The Pressure Vessel Division has the resources to manufacture pressure vesÂŹsels, columns, drums and process plant packages for the

Size of Nigerdocks graving dry dock

w w w. n i g e r d o c k . c o m

91

NIGERDOCK

We Value Safety, People, Commitment, Integrity, Adaptability and Flexibility, Trust and Customer Satisfaction

STOCKISTS/SUPPLIERS OF STEEL MATERIALS PIPE FITTINGS & VALVES LEASING CRANE/EARTH MOVING EQUIPMENTS LIGHT & HEAVY DUTY TRUCKS CONSTRUCTION ENGINEERING

0803 309 0279 0903 316 3426 info@palmasinternational.com palmas_international@yahoo.com www.palmasinternational.com 9 2 March 2015

NIGERDOCK

EXCELLENCE DELIVERED

Oil & Gas Industry and is ASME U & R Stamp Certified. Process modules and large skid packages are also manufactured in conjunction with the Offshore Fabrication Division.

“The company as a whole is capable of producing design engineering to all international codes of construction and has recently invested in new plant & equipment including a CNC plate cutting machine, plate rolling to 100mm thick, columns & booms for semi-automatic welding techniques, rotators, a pipe profiling machine and more all in accordance with the latest technology.”

Nigerdock’s Shipyard Division is the largest facility of its kind in West Africa with an out-

Dry Dock

Ofon Phase II Projects

w w w. n i g e r d o c k . c o m

93

Avoid costly delays.

Partner with us and reduce your downtime for scheduled maintenance and unforeseen shutdowns of your processing assets.

Our integrated nitrogen, cleaning, and drying process maintenance services are designed to do one thing: get you back up and running as fast as possible. And our multi-skilled experts have the experience and proven capability to engineer safe, reliable solutions to shorten your project schedule and recover downtime and financial losses.

Visit BakerHughes.com/PPS to learn how our certified project managers can optimize your maintenance objectives so you avoid costly delays.

Š 2015 Baker Hughes Incorporated. All Rights Reserved. 42753 02/2015

NIGERDOCK

EXCELLENCE DELIVERED

standing history in the marine industry. It is specialised in the fields of ship building, ship repair, maintenance and refurbishment.

It has a 25,000DWT graving dry dock, a 3,500DWT floating dock, quayside facilities and weather proof multipurpose workshops.

Not satisfied with standing still, the company has impressive plans to develop and expand its Shipyard Division with the objective to improve its specialist and engineering capacity and carry out more complex operawtions including rig refurbishment and the ability to build larger vessels. The shipyard management is focused on offering its clients the highest level of service and to consistently improve on its quality and level of workmanship.

SUPPLIER PROFILE

‘The company has impressive plans to develop and expand its Shipyard Division with the objective to improve its specialist and engineering capacity and carry out more complex operawtions including rig refurbishment and the ability to build larger vessels’

BAKER HUGHES

Baker Hughes Process and Pipeline Services (PPS) is the world’s leading service provider for process and pipeline pre-commissioning, maintenance and inspection applications. For over forty years, a staff of more than 1000 professionals, over forty bases worldwide, and the industry’s largest fleet of process and pipeline equipment has delivered a prompt, reliable response to our clients’ needs, combining expertise with advanced technologies for effective cleaning, drying, testing and inspecting process and pipeline systems. We have introduced many ground-breaking services to the process and pipeline industry: nitrogen/ helium leak testing, foam inerting and, more recently, hybrid cooldown technology for process plants.

w w w. n i g e r d o c k . c o m

95

NIGERDOCK

SUPPLYING SUPPLYING THE THEFUTURE FUTURE OF OFINDUSTRY INDUSTRY

www.traverrse.com www.traverrse.com info@traverrse.com info@traverrse.com

The The Traverrse Traverrse brand brand isis synonymous synonymous with safety, quality and comfort with safety, quality and comfortand andisis trusted trustedby byworkmen workmenworldwide. worldwide.

OAASIS OAASISGroup GroupLtd, Ltd,aaDistributionNOW DistributionNOWcompany, company,isisaaleading leading distributor distributorofofPPE PPEand andMRO MROequipment equipmenttotoclients clientsininon onand and offshore offshoreindustrial industrialsectors. sectors.

OAASIS OAASISisisan anoffi official cialdistributor distributorofofthe theTraverrse TraverrseSafety SafetyWorkwear Workwear brand, brand,providing providingcost costeffective effectivesolutions solutionsfor forthe thesupply supplyofofhigh high quality qualityworkwear workwearand andPPE. PPE. Contact ContactOAASIS OAASISGroup Groupnow nowfor formore moreinformation. information.

Great GreatYarmouth Yarmouth

Aberdeen Aberdeen

Hand HandProtection Protection Protective ProtectiveEyewear Eyewear Safety SafetyFootwear Footwear Safety SafetyWorkwear Workwear Personal PersonalProtection Protection Kitbags Kitbags

Merchants Atlas MerchantsHouse, House,Gapton GaptonHall HallRoad, Road, AtlasHouse, House,Greenbank GreenbankCrescent, Crescent, Great GreatYarmouth, Yarmouth,Norfolk.

Norfolk.NR31 NR310NL 0NL East EastTullos TullosInd IndEst, Est,Aberdeen.

Aberdeen.AB12 AB123BG 3BG +44 +44 +44(0)(0)1493 1493660690 660690 +44(0)(0)1224 1224893332 893332

www.oaasisgroup.com www.oaasisgroup.com | | sales@oaasisgroup.com sales@oaasisgroup.com

View Viewthe thefull fullrange rangeonline: online: www.traverrse.com www.traverrse.com

Trobatt Technical Company Limited Trobatt specialises in electrical, instrumentation and telecoms construction and maintenance for the oil and gas industries in Nigeria.

080 3583 1403 080 5540 7428 trobatttech.co.ltd@gmail.com

NIGERDOCK

EXCELLENCE DELIVERED

Collaborations Skillbase is a part of Jagal Energy, owners of Nigerdock Nigeria PLC, also located within Snake Island Integrated Free Zone, and an integral part of the Snake Island DISC (Deepwater Integrated Support Centre) Concept. Skillbase is a costefficient logistics hub at the heart of a service centre for the oil & gas industry. It is a model of oil industry design and planning, bringing services and suppliers together on a single site, linked to deepwater quaysides with capacity to handle supply vessels and cargo imports simultaneously.

Skillbase is designed to support exploration and development drilling, subsea construction and maintenance, FPSO Module Assembly and

Bonga Deepwater Buoy - Shell

w w w. n i g e r d o c k . c o m

97

MUDIAME INTERNATIONAL LTD

QUALITY IN ALL ONE STOP LABORATORY Mudiame is a one stop Laboratory that offers Mechanical Destructive and Non Destructive Testing, Corrosion Testing, Calibration, Inspection Services, Civil Material Analysis, Training and Certification.

234 8103 56 7175 info@mudiame.com mudiame02@yahoo.com www.mudiame.com

MUDIAME INTERNATIONAL LIMITED 105 IGBO-ETCHE ROAD, OPPOSITE ENARCO RUMUOKWURUSHI, PORT HARCOURT, RIVERS STATE, NIGERIA

Promoting Excellence Through Quality • Heavy Transportation • Insulation Services • Material Inspection • Non Destructive Testing • Lifting Equipment Inspection Contact Us +234 806 822 3540 fairtex@ymail.com jacob@fairtex.com.ng www.fairtex.com.ng

• Heavy Weighing • Fabrication • Load-out • Ballasting • Mooring

Operations Office No.310 Port Harcourt Aba Expressway Port Harcourt River State

Admin Office No.4 Green Village Estate Road

By Ap Filling Station Off Akpajo/Elelenwo Road Port Harcourt, River State

NIGERDOCK

EXCELLENCE DELIVERED

Hook Up, Operations and Maintenance, Integrated Project Teams with offices, accommodation and passenger and material transport links.

In July 2008, Mobil (MPN) in joint venture with the Nigeria National Petroleum Company (NNPC) awarded the procurement and fabrication of Abang and Itut well platforms as part of the Satellite Field Development Project Phase 1 in OMLs 67 and 70.

The project is the first of its kind to be executed in Nigeria where two complete platforms (from mudmat to helideck) are fabricated simultaneously incountry. The scope of work comprised of jackets/ appurtenances, piles, subsea templates, topsides/ associated skids and E&I systems fabrication.

Nigerdock collaberated to refurbish a 16,000 ton rig, a first of its kind in Nigeria.

Satellite Field Projects - Mobil

w w w. n i g e r d o c k . c o m

99

AFRICA’S FUTURE ENERGY PROVIDER Fabrication & Construction Electrical & Instrumentation Cathodic Protection Inspection Services Calibration Services Manpower Supply Procurement

WE ARE 100% NIGERIAN OWNED

+234 803 4022 427 +234 809 3964 682 www.petroequipmentlogistics.com info@petroequipmentlogistics.com Block V House 3B Abraham Adesanya Estate Ajah Lagos

Buildwell Plants and Equipment Industries Limited Sarens Buildwell Nigeria Ltd Joint Company of SARENS Group and BUILDWELL Group

Nothing too heavy Nothing too high Block “O”, Plot “4” Gateway City Estate Industrial Area Joint Company of SARENS Group and BUILDWELL Group Lagos-Ibadan Expressway Ibafo, Ogun State Nigeria

+234 7098821313/4 +234 17735598

contact@buildwellng.com www.sarens.com www.buildwellng.com

NIGERDOCK

EXCELLENCE DELIVERED

Then in December 2009, Transocean and Nigerdock along with the Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Content Division of the Nigerian National Petroleum Corporation (NNPC) collaborated to take on a project that was yet another first of its kind in Nigeria, the refurbishment and maintenance of the gigantic jack-up rig - the Adriatic VIII. The rig weighs 16,000 tonnes with each leg measuring 140 metres in height. The scope of work included steel repair and general maintenance. The rig was the first of its kind to be berthed alongside any facility within Nigeria.

Nigerdock employees working onsite.

w w w. n i g e r d o c k . c o m

101

NIGERDOCK

Okan Platform - Chevron

102

June 2015

A total of 30,000 man hours of training was expended in the training of welders and fitters in a special training program conducted between October 2008 and March 2009. Also, an additional five trainee engineers were assigned by the NNPC’s Nigerian Content Division to Nigerdock for a special on-the-job capacity building program.

Nigerdock and Snake Island Integrated Free Zone are also strategic partners to Snepco (Shell Nigeria Exploration and Production Company) who coordinated the entire operations, logistics

EXCELLENCE DELIVERED

and support services for the Bonga project from Nigerdock’s support base in Lagos. Snepco had heliport operations that included 2 Super Puma Helicopters, crew boats, support vessels, a 2,000 square metre state-of-the-art office, housing and hostel facilities, restaurant and catering services.

Snepco also awarded Nigerdock the topside structural steel and pipe works for final integration onto the Bonga FPSO. The package also included manpower services for onsite fabrication, construction and shop engineering, procurement of materials, blasting/painting, hydro testing of pipe spools, upgrading the living accommodation and load out.

From a safety perspective Nigerdock achieved a distinct accomplishment as the only Nigerian fabrication yard on the Agbami project without a lost time incident.

ExxonMobil’s Erha Deepwater Buoy is a catenary anchor leg mooring buoy and was awarded to Nigerdock in March 2004. The award package included fabrication, integration of the turn table platform, blasting/painting, full testing, pre-mechanical completion, load out and sea fastening. In addition, Nigerdock also provided all the required fabrication engineering.

Additional investment in capacity building via training and certification programs were implemented (scaffolding, Rigging, Machining, Welding and Painting) to boost Nigerian content expectations and to support the project in terms of safety, quality, schedule and cost.

Company Information INDUSTRY

Oil & Gas HEADQUARTERS

Lagos EMPLOYEES

4000 PRODUCTS/ SERVICES

Offshore fabrication, ship building & repair, logistical & real estate, industrial training, specialized oil & gas and maritime support services.

w w w. n i g e r d o c k . c o m

103

Air Botswana:

AFRICAN DEPARTURES Written by: John O’Hanlon Produced by: Daniel Pritchard

105

A I R B O T S WA N A

Africa is home to twelve percent of the world’s people, but it accounts for less than one percent of the global air service market: there is a huge opportunity crying out to be taken up, and Air Botswana is taking the lead

106

June 2015

Almost exactly a year ago Mr. Tozivazvipi Benster (Ben) Dahwa was appointed as CEO of Air Botswana (AB). He thought carefully before taking the job, but having done so he certainly threw himself into the task of formulating and delivering a five year plan to turn the country’s national carrier into a catalyst for economic development.

Trained as an engineer, Ben Dahwa has over 30 years’ experience in aerospace, and sees his job as delivering culture change in an organisation hitherto cast in a traditional mould. To assess the current state, and to formulate change, AB brought in the USAbased consultancy ICF International. “The plan sets out a strategy based on structured rather than aggressive growth,” he said. “We need to consolidate and refine what we do.”

The plan launched at the beginning of this year. Early targets such as on-time performance, cost containment and network rationalisation, however, were addressed right from the time of Dahwa’s appointment. For the travelling public the key metric is on-time performance: at the time of writing AB’s on time record (defined by IATA as within 15 minutes of scheduled time) stands at 86 percent. That is against a global industry average in the low to mid 70s, and represents a 16 percent improvement over the last ten months. Cause for satisfaction? Yes, agrees Ben Dahwa: “But we are a small airline.

With new equipment and once the changes we are making take effect I see no reason why we

AFRICA

“We believe this plan will improve our profitability to a point where we will no longer be reliant on subsidies” – T ozivazvipi Benster Dahwa, CEO of Air Botswana

w w w. a i r b o t s w a n a . c o . b w

107

A I R B O T S WA N A

“We believe this plan will improve our profitability to a point where we will no longer be reliant on subsidies” – Ben Dahwa

should not achieve on-time performance more than 90 percent of the time, consistently.”

The plan addresses both restructuring the company operations and re-fleeting. “Our fleet is getting older so the cost of keeping the aircraft flying is getting steeper by the day. We need to be renewing the fleet so that we can enhance our product and provide services we can’t now.” There i s a growing demand, he says, for business class services for example, and the in-flight comforts and refinements that the latest jets incorporate.

Re-fleeting will happen over the next four The lounge at Gaborone

108

June 2015

AFRICA

years so that by 2020 all the planes will be new.

“We expect to see our maintenance and fuel costs going down significantly. We’ll also have a more attractive product that will sell better and boost revenues,” he said. “We believe this plan will improve our profitability to a point where we will no longer be reliant on subsidies.”

While he’d like to be able to purchase new aircraft that may not always be the best way to go.

“In our current model we operate six aircraft,” he says. “We needn’t say that we will replace them all in the same financial year though. If market conditions are favourable an outright purchase might be the best mode of acquisition. If we are less sure about traffic growth we can go for an operating lease.” Botswana has the highest credit rating of any African country, so would have no trouble leasing on favourable terms.

Addressing operational issues has to be done in partnership, he emphasises. The Civil Aviation Authority of Botswana (CAAB) manages the country’s airports, including Sir Seretse Khama International Airport at the capital Gaborone, and Francistown International Airport in the north east. A very close working relationship exists between these parastatals (government owned entities operating as commercial concerns), both reporting to the Minister of Transport.

The government has every reason to support AB. In 2014 tourism contributed 6.4 billion Pula ($650 million) to the economy, said Dahwa.

“Within that figure, about two billion is traceable

Welcome to Air Botswana

w w w. a i r b o t s w a n a . c o . b w

109

A I R B O T S WA N A to high value tourists – the ones that would use air transport to come into Botswana, and who also use internal flights. We can thus claim to be facilitating a P2 billion impact on GDP. Even if the government subsidises our operations to the tune of say P100 million, that would be hardly five percent of our net contribution to the national economy! I think this is how a national airline should be measured.”

Dahwa favours partnership with private operators in developing short routes that would not be operable using AB’s larger aircraft. A good example is the link between the popular tourist destinations Maun and Kasane. The hour long

Inside the lounge

Packaged Deals

One Stop Convenience Service Provider

Securing Your World

Cleaning Services Contract cleaning for offices, schools, shopping malls, universities, airports High rise window cleaning, carpets, domestic cleaning Facilities Management Services Financial: Full accounting services Utilities & Services (reading utility meters) Make payments within agreed parameters Maintenance & inspection of properties * Electrical * Plumbing * Carpentry Fleet Management Real-time vehicle tracking Efficiency & cost control Fuel usage reporting & management Time management Integration Monitoring driver behaviour Management reporting Secure Monitoring & Response Intercom systems Security alarms Portable panic buttons Electric fences Emergency medical alarms Fire alarms Visual alarm verification systems Illegal access signals Access control systems Facility & Fleet Managemnet CCTV Systems Cash, Assets Management & Secure Logistics

Cash Management Vaulting Asset & cash in transit services Deposita automated machines Integrated asset management ATM Services:- Replenishment, 1st line maintenance Key Security:- collection and delivery of strong room keys Security Products:- tamper evident bags, seals, coin boxes

Manned Security Customised security solutions Technology Integration Continual risk management Sector specialisation: mining, oil and gas, aviation, hospitality, telecoms, retail and financial Institutions Event security Secure mobility & close protection G4S (Botswana) Ltd Careers & Recruitment Sales Tel: (+267) 3698000 P O Box 1488, Gaborone Tel: (+267) 3698000 Tel: (+267) 3698000 Plot 20584, Western Bypass Fax: (+267) 3914124 Gaborone, Botswana, Africa Email: Head.office@bw.g4s.com Email: Sales@bw.g4s.com Email: recruitment@bw.g4s.com

Exceptional Service.

Personal Attention.

In order to provide comprehensive solutions to multi-faceted financial services industry requirements, and to deliver a strong client-focused approach across a range of insurance products, servicing corporates medium –size businesses and individuals in South Africa and the rest of Africa, the Pogir Group consists of four separate companies: Short Term Insurance, Healthcare Solutions, Employee Benefits and Life & Advisory.

Visit us online to find out more: www.pogirgroup.co.za St Andrews office park, Block A, Ground Floor 39 Wordsworth Avenue, St Andrews Bedfordview Tel: (011) 879 7200 | Fax: (011) 454 - 0581

AFRICA

flight is operated twice weekly by local operator Kalahari Air Services (KAS). AB underwrites the operating costs, and KAS maintains the route using its own aircraft. That is a model he would like to see replicated widely, as a way of bringing such places as the mining town of Orapa and the desert community of Ghanzi into the network. Such small operators need to be as strict in compliance and safety as AB itself, which is IOSA (IATA’s International Operational Safety Audit) checked every two years.

A vital component in AB’s modernisation plan is the introduction of new ICT systems. “The present system is too manual. We lack world

“We believe this plan will improve our profitability to a point where we will no longer be reliant on subsidies” – Ben Dahwa

A BAe 146-100 regional airliner

w w w. a i r b o t s w a n a . c o . b w

111

A I R B O T S WA N A

“We are part of the national team that is working on attracting international flights into the country” – Ben Dahwa

112

June 2015

class automation tools.” To address this an ERP solution will be implemented, linking every activity from operations, commercials, finance, maintenance, tracking of paperwork such as airworthiness certification and all customer facing processes. This is a critical phase, Ben Dahwa emphasised. Over the coming three to four years, in the same timeframe as fleet renewal, expenditure of P30 million ($3.5 million) has been budgeted for ICT alone, as the new system is implemented, module by module. “It is a big step so we need a transformational culture change,” he said. “My management team is driving that forward. We want to see efficiency and productivity going up and wastage, whether performance or equipment related, going down!”

Downsizing will be minimal. Certainly fewer people will be needed to maintain existing levels

AFRICA

of work, but this should not mean involuntary redundancy. AB is in expansion mode and this will absorb most of the core workforce. Retraining and multiskilling will be needed: older workers will be retained to pass on their knowledge, then perhaps offered early retirement.

It’s national policy to bring long-haul flights into Gaborone, though AB will itself stick to regional flights up to 2020, extending its network though code sharing arrangements with global carriers.

“We are part of the national team that is working on attracting international flights into the country, in partnership with private business.” He said.

“Botswana Investment and Trade Centre (BITC) Botswana Development Corporation (BDC); The Botswana Confederation of Commerce, Industry and Manpower (BOCCIM); Public Enterprises Evaluation and Privatisation Agency (PEEPA) Botswana Tourist Authority (BTA) - we all need long haul into Gaborone!”

Additionally to becoming a passenger hub, providing feeder flights to the region, AB want to become a cargo hub for southern Africa.

After all Gaborone is nearer to the industries of Gauteng than Cape Town or Durban. As the assigned ground handler, occupying the cargo terminal at Sir Seretse Khama Airport the company has invested P43 million ($4.36 million) in the latest cargo handling equipment. Once the final items have been delivered, AB will be able to handle the largest aircraft in the skies.

Company Information INDUSTRY

Aviation HEADQUARTERS

Gaborone FOUNDED

1972 EMPLOYEES

420 REVENUE

N/A PRODUCTS/ SERVICES

Air Botswana operates and maintains a fleet of BAE 146 as well as ATR42-500 and ATR72-500 advanced turbo propeller aircrafts which operate daily domestic and regional scheduled flights

w w w. a i r b o t s w a n a . c o . b w

113

Canaroma Bath & Tile Canada’s leader in luxury bath,

lighting and tile products joins the nation’s largest home improvement center, Improve Canada Exclusive brands and luxury items conveniently offered under one (very large) roof Written by: Jennifer White

Produced by: Sean Bakke

115

C A N A R O M A B AT H & T I L E

F

amily-owned and operated for nearly 40 years, Canaroma Bath & Tile is one of Canada’s most respected and well-known importers of luxury bath, lighting and tile products. Founded by Frank Piacentini and Roy Mancini in 1979, the company holds tightly to its roots, maintaining the same values today as when it was a two-man startup.

experienced tremendous growth and shows no signs of slowing down. The seamless manner in which the company has been able to update infrastructure and inventory to match customer demands and corporate growth is a clear indication of smart management and a hardworking team with a bright future.

Canaroma aims to introduce additional exclusive brands to its Continuous growth collections each year, attending From a 7,000 sq. ft. outlet center with trade shows around the world an attached showroom to a 20,000 and maintaining an awareness of sq. ft. showroom with an attached customer needs. outlet center, Canaroma has “We listen to our customers; we 116

June 2015

CANADA

try to offer what they want,” Patricia Ee, Sales & Marketing Director, said.

“Traveling throughout the world, we see different styles and trends that we bring back for our collection.”

The company recently added lighting to its home improvement and design collections, which Ee believes serve as a complement to the current collection of vanities— especially with the Swarovski accents.

In addition, she continued, “We are expanding our trade department by making more connections with designers, decorators and custom home builders.”

These expanding collections, customers and connections are supported by an even bigger expansion-based endeavor: the recent partnership with Improve Canada, the 320,000 sq. ft. home improvement center developed w w w. c a n a ro m a . c o m

117

C A N A R O M A B AT H & T I L E in Toronto. The one-stop-mega shop will allow shoppers access to more than 400 home improvement businesses across 36 different categories under one roof.

“Logistically it is better for customers,” Ee said of the move, which includes a partnership with American Standard.

– many have lasted more than the near 40 years the company has been in business – and this trait seems to have secured a place in the company’s culture. And by continuing to foster relationships within the industry, Canaroma is able to offer exclusive brands from around the globe, many of which are not available to purchase from any Competitive advantages other company in Canada.

Canaroma’s owners Piacentini and In some cases, Canaroma is “the Mancini are excellent at building and only North American distributor,” Ee maintaining supplier relationships explained.

Worcester

Victoria + Albert is a global brand with a worldwide reputation for creating beautiful baths.The ultimate statement in quality and sophisticated style, their award-winning collections are packed with inspirational designs made from 100% ENGLISHCAST.

w w w.vandabaths.com tel: 80 0-421-7189

I

fa x: 80 0-421-7190

4750 Goer Dr i ve I Unit A I Nor th Char leston SC I 2940 6 I USA

CANADA

“Having these brands is an absolute draw for designers and architects who want their client to have something really exclusive and unique.

And because we have such a range of products, from very affordable all the way to exclusive, it is a natural connection.”

Canaroma’s collections consist of more than 30 international brands that collectively feature a unique and comprehensive blend of design styles, from classic, vintage and modern to antique, art deco and everything in between.

People and the planet Luxury and exclusivity are not the brand’s only focus: corporate social responsibility is also important to Canaroma. From reusable materials and green bathroom products to costeffective initiatives for consumers, the company is committed to reducing its carbon footprint as much as it can.

The close knit company also prides itself on maintaining an “at home feeling” in the office that resonates with customers, suppliers and staff members alike.

“We feel like we are part of the Italian family— that comes across when the sales team interacts with customers,” she said.

Over the next year, Ee predicts the company will continue to focus on these core values, adding more suppliers, products and brands to its portfolio and perhaps expanding to the U.S.

Company Information INDUSTRY

Retail HEADQUARTERS

7979 Weston Road Woodbridge, Ontario, Canada, L4L 1A6 FOUNDED

1979 EMPLOYEES

25 REVENUE

$50 million

w w w. c a n a ro m a . c o m

119

Andy Transport Andy Transport On the Move President and COO Ilie and Andrea Crisan discuss a decade of growth and goals Written by: Sasha Orman Produced by: Michael Magno

121

C O M PA N Y N A M E

I

n 2001, Ilie Crisan was the owneroperator of a single transport truck, purchased for around $10,000.

Nearly 15 years later, Crisan is the president of Andy Transport, a swiftly growing trucking company built by Crisan and based out of Salaberry-de-Valleyfield, QuĂŠbec.

Andy Transport operates with a goal of providing clients with efficient 122

June 2015

transportation solutions throughout Canada and the United States.

With a current fleet of more than 175 trucks, and recent recognition as one of the Top 100 Carriers by Today’s Trucking magazine, Andy Transport is building a name for itself as a force in the supply chain and logistics industry.

SECTOR

A Responsibility to Sustainability Andy Transport puts environmental concerns and social corporate responsibility at the top of its priorities as a business. As such, Andy Transport has committed to several green policies to increase conservation throughout every aspect of the business, from onboard scanning fleet-wide to paperless offices. But above all, the business works to build a more environmentally responsible fleet.

“We value our human resources. We treat everybody fairly, and our drivers are very well respected” – Ilie Crisan President, Andy Transport

w w w. a n d y t r a n s p o r t . c o m

123

ANDY TRANSPORT

130 Delta Park Blvd Brampton, ON Ph : 416-848-4111 888-203-8484 Fx : 866-346-8863 support@bvdpetroleum.com www.bvdpetroleum.com

Fier par tenaire d’ Andy Transport

Our collaboration with BVD Petroleum targets the optimization of fleet wide fuel services and reduction of fuel expenses. We were thrilled when the BVD team’s customized services program met our expectations.

What we appreciated the most about working with the BVD team was their ability to listen to our needs and to propose relevant solutions. BVD has become a trustful and reliable business partner for our company.

Andreea Crisan, COO, Andy Transport

CANADA

This means incorporating hybrid aerodynamic technologies like trailer side skirts, which reduce drag and thereby cut fuel consumption three to seven percent, and mandating regular maintenance to catch any fuel-guzzling technical issues early before they become major problems. It also means cutting down on idling and tracking driver behavior to encourage smarter and more eco-conscious habits among Andy Transport staff. As the Crisans explain, these carbon footprint reduction policies serve a twofold purpose: not only do they reduce fuel costs and overhead for Andy Transport, they also speak to the company’s overarching commitment to environmental sustainability.

“We are investing in the development of an eco-driving culture, and recently purchased a driving simulator that is used in our annual training program. The simulator will allow us to teach our drivers the best practices of ecodriving,” says Ilie, explaining that Andy Transport strives to ensure that its fleet is among the greenest on the highway. “Eco-driving contributes

to climate protection and pollution reduction; this new tool was easily adopted by our company as it aligns with our corporate mission.”

A Responsibility Toward Growth Every business is ultimately tuned toward steady growth, and Andy Transport is also on this path. So far, the company’s track record speaks for itself—what started as a onetruck operation in 2001 has become a rapidly expanding enterprise with plans to add as many as 65 new trucks to the fleet within this year alone. Beyond fleet expansion, Andy Transport also has plans to diversify and spread growth around to its various divisions.

“We’ve had our logistics division since 2007, and it is a small division compared to our trucking division— but it’s definitely something we’re looking at growing,” says Andy Transport COO Andreea Crisan, who notes that Andy Transport is also looking to diversify its flat bed and intermodal divisions, as well.

Another way that Andy Transport is growing is through its connections, engaging in certifications like the United w w w. a n d y t r a n s p o r t . c o m

125

ANDY TRANSPORT

States Environmental Protection Agency (EPA) SmartWay Transport Partnership and the C-TPAT through Customs and Border Protection.

Such certifications bolster Andy Transport’s reputation among clients and prove the company’s commitment to issues like environmental sustainability and the latest standards in best practices.

With independent audits, clients can rest assured that the service they are signing up for is the best.

126

June 2015

A Responsibility to the Team What sets Andy Transport apart from its competition? Several points come to mind, from the flexibility to its consistent and reliable high quality service. But perhaps above all, what puts Andy Transport head and shoulders above the rest is the value that it places in each and every member of its team.

“We value our human resources,” says Ilie. “We treat everybody fairly, and our drivers are very well respected.” According to Andreea, this is because the company is led by

CANADA

Company Information INDUSTRY

Supply Chain HEADQUARTERS

4225 Boulevard Hébert Salaberry-de-Valleyfield Québec, Canada, J6S 6J2 FOUNDED

2001

a president who can relate to and empathize with his staff, as he still remembers what it was like to be a driver himself.

“He was not a truck driver three generations ago—he was a truck driver maybe 8 years ago,” she explains. “He understands drivers. He understands what drivers value, how they feel when they’re alone on the road and how dispatch should be talking to them.”

It’s an empathy that translates to a feeling of respect that permeates throughout the company from staff to clients. As Ilie explains, it’s based on the simplest yet most resonant tenet that makes Andy Transport a cut above the rest: “treat everyone with the respect they deserve.”

EMPLOYEES

Not Disclosed REVENUE

Not Disclosed PRODUCTS/ SERVICES

Private trucking company

w w w. a n d y t r a n s p o r t . c o m

127

Northline:

Northline conquers supp chain challenges with en end solutions

By making family and customer top priorities, Northli comprehensive services for a multitude of industries.

Written by: Sasha Orman Produced by: Daniel Kadar

plynd-to-

ine provides .

NORTHLINE

Northline provides a one-stop shop for customers across all of their supply chain requirements.

S

ince 1983, Northline has been in the business of moving and storing freight throughout Australia, supporting supply chains to help its clients thrive. “We can provide an end-to-end solution across all industries,” said Craige Whitton, Northline’s Chief Executive Officer.

“International transport, interstate transport, intrastate transport, warehousing and distribution— we can tailor a solution or any component of a solution to suit customer’s requirements to solve their supply chain challenges.”

130

June 2015

Starting with a line north from Adelaide to Darwin, today Northline offers road and rail freight management, warehousing and distribution, and global freight forwarding from 13 branches serving every major region in Australia. As Northline cultivates its reach and capabilities, it continues to stay true to its Australian roots.

Growth in Darwin An important component of growth for any business is self-investing, and Northline today is investing in construction at its Darwin port site

AUSTRALIA

Northline trucks being loaded at a warehouse.

in Australia’s Northern Territory.

This marks the third major property development project for Northline in recent years, following a new Brisbane facility in Redbank in late 2014 and a new Sydney facility in Smithfield in January 2014.

“We have a new facility that is underway and due to be completed by the end of August this year,” said Whitton of development in Darwin. “It’s about 600 metres from the railhead with great links to road, rail and port facilities, and it’s going to allow us

to get some synergies within our business, to get more efficient and productive and improve the way we do things up there.”

The 40,000 square metre facility, under development by Gibb Group with funding and ownership by Charter Hall, is expected to double the size and capacity of Northline’s Northern Territory operations. The decision to increase capacity in operations in Darwin was a conscious one— the site is important to Northline’s history as a business.

“The company name Northline w w w. n o r t h l i n e . c o m . a u /

131

Charter Hall Group has grown, since its launch in 1991, to become one of Australia’s leading property groups, with a total property portfolio of $12.7 billion & 270 office, retail & industrial properties.

charterhall.com.au/industrial

Delivering industrial

NORTHLINE was created 32 years ago, and the basis of it was a line north from Adelaide all the way through to Darwin—and along the way stopping in Alice Springs, Tennant Creek, and Katherine,” explained Whitton, noting that— while the company has links with every major city from Perth and Brisbane to Sydney and Melbourne today—Darwin is as critical a juncture for trade and distribution as it’s ever been.

“The territory has been a harder market for many people—but we always like to take on the tougher challenges,” said Whitton. “From

SUPPLIER PROFILE

AUSTRALIA

that perspective, it’s been a part and parcel of everything we do for the last 32 years. Now is as great a time as ever to expand.”

The culture of a family business Northline is a company that takes pride in not just its achievements, but also its identity as a fully Australian, family-owned entity with operations throughout the continent.

“Northline is a family business— it is and it always will be,” said Whitton. “We maintain a family culture whilst operating in a completely corporate environment— we try to have the best of both

CHARTER HALL

Since launching in 1991, Charter Hall has become one of Australia’s leading property groups, with a total property portfolio of $12.7 billion & 270 office, retail & industrial properties.

With $2.5 billion of predominately long-leased industrial properties under management, Charter Hall is one of Australia’s leading Industrial property specialists covering 1.8 million square metres in key growth markets around Australia.

Given the sector’s strong property fundamentals and the increasing interest from both wholesale and retail investors, Charter Hall has been actively growing its portfolio of high quality industrial facilities over recent years and now has one of the largest portfolios in Australia. The group also has an industrial development pipeline of approximately 683,000sqm, with a potential end value in excess of $740 million.

Website: www.charterhall.com.au

w w w. n o r t h l i n e . c o m . a u /

133

C O M PA N Y N A M E

Northline emphasizes family culture within a corporate environment

worlds. Ultimately, by being family owned, we feel that we are able to look after our people in many ways.�

This attention to looking after its people manifests in many ways.

One crucial priority at Northline is workplace safety, and it has the records to prove it. At the end of June, the company is slated for a completion of two years injury free, putting its lost time injury 134

June 2015

ratio at zero.

The company also takes a keen interest in people with the potential to be an asset in the future. This outlook has propelled Northline’s graduate program, an ongoing two-year internship program where university students work their way through different areas of the business to find the perfect place that best complements their

SECTOR

strengths and interests.

“They get signed off by the various managers in each area before they continue, to confirm their competency in that before they move on to the next area, and complete projects and presentations along the way,” Whitton explained. “At the end of that time, they’ll end up in different roles throughout the business—

whether they end up in sales and marketing, or HR, or any other operational parts of the business as well.”

Northline currently has seven students enrolled in its graduate program, and successful students can look forward to a bright career: three students who enrolled in the company’s first graduate program 15 years ago still work for Northline w w w. n o r t h l i n e . c o m . a u /

135

NORTHLINE education programs as well.

It’s all about retention and the development of our staff. That’s where we’re focused.”

Growth and expansion There are plans for growth shaping up on the horizon for Northline.

With its Darwin development work nearing completion, the business will soon turn its sights toward upgrades in Adelaide. “Between Redbank in Brisbane, Smithfield Craige Whitton in Sydney, and now East Arm in Darwin—our Melbourne and Perth to this day, each one occupying a facilities were purposely built for us national management role. a few years ago, so Adelaide will be In recent years, Northline has the only remaining capital city that been finding additional ways to we need to redevelop,” said Whitton. increase its investments in its people. Starting in July with the next “That’s a little further off, but we financial year, the company has need to have a new development plans to roll out a substantial new finished in Adelaide for 2017, so it’s learning and development program on the drawing board as we speak. that will encompass staff at all levels We will certainly be looking at the technology and our requirements of operations. over the next 12-18 months.”

“We’ll be able to have our While the business is already operational trainers spending involved in providing services time with staff in the field, and across a wide cross-section of equally we’ll have a supervisory industries and geographies, it management and development is investing time and effort to program,” said Whitton. “Then we’re going to have some executive expand in a few specialty areas— 136

June 2015

AUSTRALIA

specifically global freight forwarding, importing and exporting with China, and freight services and warehousing solutions specifically for customers in the mining, construction, and oil and gas industries that are looking for cost savings as commodity prices fluctuate.

“As far as Northline’s concerned, over the next few months we will see expansion across all of the sectors, whether that be transport or warehousing, international or mining,” said Whitton. “We see them as growth opportunities for us going forward, and I think that will also apply to all geographies, particularly within Australia. So there’s plenty on the horizon. ”

Company Information INDUSTRY

Mining, Supply Chain HEADQUARTERS

Norwood, SA, Australia FOUNDED

1983 EMPLOYEES

450-500

Northline’s points of difference What ultimately sets Northline apart from the competition is not merely one point, but several traits working together in tandem.

“The first one is that we’re Australian owned and operated; the second is that we offer a breadth of service that not many others have—whether it’s local, interstate or international transport and warehousing, we can provide a one stop shop for customers across all of their supply chain requirements,” said Whitton. “Then, the focus on our customers—we have an internal mantra of delighting our customers—and making sure that we’re at the cutting edge of technology. Those four things combined are the four strongest traits—and points of difference for Northline.”

REVENUE

Privately Held PRODUCTS/ SERVICES

Incorporated in 1983, Northline strives to be the supply chain provider of choice to the Australian market. With 13 branches across the country, Northline is able to offer comprehensive and integrated road and rail freight management and distribution solutions for customers in any industry.

w w w. n o r t h l i n e . c o m . a u /

137

Australasian Railway Association (ARA)

Moving towards a promising future

A U S T R A L A S I A N R A I LWAY A S S O C I AT I O N ( A R A )

Freight Pacific National

T

he Australasian Railway Association (ARA) is the peak body representing all passenger, freight, track operators and the wider rail supply industry in Australia, New Zealand and Indonesia.

Its fundamental purpose is to create an environment that will permit the Australasian rail industry to prosper.

When issues arise that affect the whole industry, the ARA takes the lead facilitating an industry response.

The ARA is actively involved in the development of rail policy to ensure the industry’s views are represented.

As well as shaping policy in the 94

June 2015

areas of passenger, freight, rail safety regulatory reform, the environment, technology and research, the ARA is also involved in programs aimed at improving the productivity, capacity and overall safety of the Australasian rail industry.

Over the past busy year, the ARA has continued to advocate strongly on behalf of its membership to ensure greater prosperity of the rail industry throughout the region and to keep rail on the political agenda.

Through the collaboration and willingness to share knowledge and ideas, members in ARA’s Committees and Working Groups

S U P P LY C H A I N

Inland Rail. This nation building project will address the existing road and rail imbalance by opening up the Melbourne to Brisbane network, taking seven hours off transit between the two cities; removing thousands of trucks from major highways, easing the Sydney Strengthening our freight bottleneck; and boosting regional networks development along the entire In 2013, Australian railways carried 1,700km route. over 1 billion tonnes of freight, with The ARA wants certainty on freight movements on rail increasing the future of the project through by 57 per cent over the past five a clear and significant funding years. The national freight task is commitment across the Forward predicted to almost triple by 2050, driven substantially by the resources Estimates from the 2016/17 Budget. boom and the export task of moving Clear timeframes and a strong commitment of the existing $300 iron ore and coal to ports. million toward detailed planning, land If Australia is expected to meet acquisition, community consultation this growing freight challenge, Rail and exploration of regional freight rail will need to have an increasingly links is required. important role to play in this space.

The ARA works closely with state and federal Governments regarding Investing in major urban rail projects a range of freight related issues.

Passenger rail in Australia is going The number one priority is to get more freight on rail and to advocate through a renaissance, moving more than 850 million people each strongly to governments at all year. This is equal to 16.4 million jurisdictions to take measures for passenger trips per week or 2.3 this to occur. million people travelling by train The ARA continues to advocate every day of the year. key freight projects such as the are making a real, tangible difference in the rail industry, influencing and contributing to new initiatives, industry benchmarking and key decisions that impact the entire industry.

w w w. a r a . n e t . a u .

95

A U S T R A L A S I A N R A I LWAY A S S O C I AT I O N ( A R A )

Downer EDI manufacturing

With populations in cities like Melbourne and Sydney expected to grow to over 8 million by 2050, urban heavy and light rail are going to play a key role in preventing increased congestion that would otherwise cripple our cities and inner suburban areas.

Non-urban passenger rail services are also growing, 96

June 2015

providing interstate connections between our regional townships and major cities including Darwin, Perth, Adelaide, Melbourne, Canberra, Sydney and Brisbane.

The ARA over the past year has been strongly advocating for greater infrastructure investment to go into public transport, in particular heavy urban and light

S U P P LY C H A I N

rail. The ARA is encouraging the Federal Government to support the States in meeting the increasing passenger rail infrastructure needs of our cities, through the co-funding of light and heavy passenger rail projects, such as the Melbourne Metro Rail and Brisbane Cross River Tunnel. The future productivity and liveability of our

cities depends on investment in an integrated transport system linking our railways, cities and ports to help move growing numbers of people and goods across Australian cities.

Skilled jobs for the future Rail manufacturing and supporting infrastructure generate annual revenue exceeding $4.2 billion. w w w. a r a . n e t . a u .

97

A U S T R A L A S I A N R A I LWAY A S S O C I AT I O N ( A R A )

Estimated Australian Freight Volumes

Across Australia, there are approximately 330 manufacturing firms with more than 150 years of rail design and manufacturing capability.

Rail suppliers are mostly small to medium enterprises (SMEs), 85 per cent of which are Australian owned.

Australia’s geography and geology lends itself to requiring world class rail capability, one that is economically efficient and environmentally friendly and that improves urban amenity. Today, the Australian rail industry can demonstrate world’s best practices in terms of design, innovative technologies, signalling, and the infrastructure that underpins it. It is 98

June 2015

important that Australia continues to leverage this competitive advantage and become a leader in the global market.

There is still much room for improvement in terms of efficiency and effectiveness of freight haulage and increasing passenger patronage onto rail modes of public transport. Both government and industry should be motivated to increase the industry’s growth and productivity as the economic benefits are significant.

Government is central to the competitiveness equation, being a major customer and influencer of the rail industry.

S U P P LY C H A I N

conference AusRAIL PLUS, being held in Melbourne 24-26 November 2015. AusRAIL PLUS is the largest rail conference held in the southern hemisphere, with thousands of delegates and hundreds of exhibitors coming together to hear from key leaders in rail from across Australia and the globe.

The theme this year is ‘Doing United for the future. it smarter: People. Power.

The ARA is seeking to further strengthen rail’s position as a leading Performance.” This exciting event provides a unique opportunity for passenger and freight transport people to come together to learn mode of choice and convey to from each other, network and government and key stakeholders the critical role rail plays in the regions convey to government the industry’s key priorities. The exhibition transport infrastructure. showcases new technologies, Rail is crucial to Australia’s economy, and its whole productivity. new ways to be doing things and innovative ideas, which again Over the years, rail has united to draws back on the core theme of pursue common agendas, identify ‘Doing it Smarter’ through greater areas of mutual interest, develop productivity, better operations and trust and collaborate to increase increased efficiencies. productivity, efficiency, safety and To become part of this united most importantly reduce costs. effort and gain access to the ARA’s The key to achieving greater network, knowledge and influence government involvement and join the ARA membership. Full investment in rail relies on this details and contact information can industry unity; coming together as be found at www.ara.net.au. If your one voice. company works in rail you really This collaboration will be should be part of the conversation. highlighted at the ARA’s national Rail suppliers, manufacturers and contractors need support from the Federal Government through programs that help to foster innovation and job creation in our local rail sector and assist with forming alliances, partnerships, joint ventures and the like.

w w w. a r a . n e t . a u .

99

E20001-F150-M117-V1-7600

Productive plants don’t have to run around the clock, they just have to run efficiently.

Realize the potential of energy-efficient solutions more quickly siemens.com/energy-efficient-production

More than ever before, the key to efficient production lies in implementing energy-saving measures. These range from the use of energy-efficient drives to the shutdown of complex production processes. In the past, this shutdown had to be done manually, making it very time-consuming. Today, a standardized data interface ensures that power consumers can be

switched off centrally in a coordinated and risk-free manner, thus enabling plant operators to achieve energy savings of up to 80 percent during production pauses. We would be delighted to provide you with information about our portfolio of energy-efficient products, solutions and service, which will enable you to quickly achieve lasting gains in efficiency.

Answers for industry.