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powering on with its green revolution.
Exclusive interview with Bonang mohale, Country Chairman & VP of Shell Oil Products Africa, South Region
Joburg Market the market of the future.
Du Roi laboratory is the banana the perfect fruit?
eThekwini Municipality well run and financially strong local government.
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Optimism grows I like good news and I’m happy to say that business picked up in 2010 (at least that’s what you, our readers, tell us). Business leaders are now expressing hope for 2011, tempered by a lowering of expectations. We haven’t a crystal ball, and there is no way of knowing what the future holds, but it will certainly be an interesting 12 months, with growth very likely. Given this anticipated growth, there is an increasing focus on energy use and security. Will Eskom be forced to load shed again? The power utility has already asked its large industrial customers, including mines, to reduce their energy use by 10 percent and is focusing on its own efficiencies by, for example, buying better quality coal from its suppliers. With this in mind, South Africa Magazine brings you a guide to becoming more energy efficient in 2011: you don’t want to be left behind.
Editor – Ian Armitage Acting editor – Susan Miller Editorial assistant - Inger Smith Sub editors – Jahn Vannisselroy Janine Kelso Tom Sturrock Alison Grinter Writers – Colin Chinery Jane Bordenave
General manager - Andy Ellis Research manager – Don Campbell Researchers – Jon Jaffrey Elle Watson Chris Bolderstone Dave Hodgson Advertising sales manager – Andy Ellis Sales executive – Andy Williams Sales administrator – Abbey Nightingale
Financial controller - Nick Crampton
We also look at the plight of Africa’s lions and have an exclusive interview with David Youldon, star of Britain’s ITV documentary Lion Country. Along with his colleagues at the African Lion & Environmental Research Trust (ALERT), David reintroduces lions into the wild that are from a captive source.
Production & Design
As you can see from the cover, we also look at Shell South Africa, which recently became the first international oil company operating in South Africa to achieve level 3 Broad-Based Black Economic Empowerment (BBBEE) contributor status. There are a host of other interesting stories inside, as well as all the business profiles you have come to expect from this industry-leading magazine.
South Africa Magazine, Suite 8, The Royal, Bank Plain, Norwich, Norfolk, UK. NR2 4SF
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All the latest business news from South Africa
business Become more energy efficient in 2011
With demand for electricity set to increase by about two percent in 2011, we’ve come up with some novel ways to increase energy efficiency, save money and rescue the planet.
sport Polo: The sport of Kings that anyone can play
people Lion’s Pride
Polo is increasingly affordable to watch, has become more accessible, and has never been more popular, as Rebecca Kent discovers.
Imagine Africa without the lion... Interview with David Youldon, the real lion king
22 PROXA 28 SHELL OF 38 DEPARTMENT TRANSPORT 46 SUNSPRAY FOOD 54 WOOLWORTHS 62 JOBURG MARKET 66 eThekwini municipality 72 DU ROI LABORATORY 80 FIRE RAIDERS 86 FOSKOR 90 CARROL BOYES TRAILER 94 MARTIN COMPANY www.southafricamag.com
All the latest news from South Africa Money
Modest house price growth
Agri SA prepared
Residential property prices will achieve modest growth this year, and homebuyers should take advantage of the current favourable environment, says financial services provider ooba. “This is likely to be at a reduced rate than the level of growth recorded last year, however with interest rates remaining at historically low levels homebuyers are being urged to take advantage of the current environment to secure a favourable home loan,” said the company’s chief operating officer Rhys Dyer in a statement. People could expect nominal growth in property prices of between four and five percent for the year. “This is very much in line with inflation forecasts, resulting in very little real growth in property prices for the year.” 6
to support land reform
AgriSA is “fully prepared” to support a meaningful land reform programme, the organisation’s president, Johannes Möller, has said. Möller explained in a statement that the time had come for the government, organised agriculture and individual farmers to move closer together with a view to promoting general land reform. “It is common knowledge that the billions of rand spent on restitution of land rights has almost without exception resulted in dismal failures, thus seriously undermining food security -- the latter matter which President Zuma also commented on during this occasion.” Möller was responding to President Zuma’s statements on land reform during the ANC’s 99th anniversary celebrations in Polokwane in early January. Zuma said that land redistribution was an area, which still had a lot of challenges. He said the department of rural and land affairs was working on plans on how to adjust the law to address the matter.
Business New growth path
Cosatu Inflexible wage demands by SA’s workers are the likely reason for massive job losses since the start of the global financial crisis. “Cosatu’s view though is that, overall, the New Growth Path proposed by government falls far short of the comprehensive and overarching development strategy... that will fundamentally transform our economy and adequately address the triple challenges of extraordinary high levels of unemployment, poverty and deepening inequalities,” spokesman Patrick Craven said in a statement.
Eskom: Energy demand
The demand for electricity is set to increase by about two percent in 2011 as South Africa’s economy recovers, Eskom CEO Brian Dames has said. “Therefore, we are targeting every day a two percent improvement in output for the next two years,” he told media in Johannesburg. Eskom will take a different route to balance the gap between increasing electricity demand and its supply. “We have started work and we are monitoring the system. We will start doing things differently.” He said the power utility has asked its large industrial customers, including mines, to reduce their energy use by 10 percent.
down in December
Jobs in the retail sector received a boost from festive spending, but overall employment was down in December, according to the monthly Adcorp
Employment Index. “The number of permanent workers decreased by 0.21 percent,” said Richard Pike, CEO of Adcorp, in a statement.
Temporary work increased by 0.07 percent and agency work was up 3.84 percent. Overall, the index declined by an annualised 0.13 percent. www.southafricamag.com
Khumalo deal Tottenham have completed the signing of South Africa defender Bongani Khumalo from SuperSport United for a fee of around £1.5 million. “I am looking to learn as fast as I can and do all I can to contribute to this wonderful team,” Khumalo said. Spurs announced in October that they planned to sign the 23-year-old central defender after he impressed in trails. He was a regular for South Africa during the World Cup, featuring in all three of group matches and scored a famous strike in South Africa’s famous 2-1 victory over France.
Messi wins Ballon D’Or
Barcelona forward Lionel Messi has won the FIFA World Player of the Year Award for the second year in a row. “It’s a very special day for me,” Messi said. “I didn’t expect to win it.”
The 23-year-old did put in some mesmerising performances for his club in 2010 and scored a remarkable 58 goals last year. He obtained 22.65 percent of the votes cast by coaches and captains of national
teams plus invited journalists. Barcelona teammates Andres Iniesta and Xavi finished second and third respectively. All three candidates honed their craft at the celebrated La Masia youth academy.
Tourist arrivals up in
Philippines travel advisories Tourist arrivals in the Philippines rose 19.5 percent in 2010, surpassing government targets, despite travel advisories issued against the country, immigration data shows. According to the Bureau
of Immigration, 3.45 million foreign visitors arrived in the Philippines last year. Efforts to attract more tourists to the Philippines hit a snag beginning in August when eight Hong Kong tourists were killed in
a botched rescue during a hostage taking in Manila. The hostage crisis and reports of an imminent terrorist attack prompted a number of foreign governments to warn their citizens against travelling to the Philippines.
‘No pants’ Gautrain ride ends in handcuffs
A “No Pants Gautrain Ride”, coinciding with the 10th annual “No Pants Subway Ride” in New York, ended with 34 “indecent” people being handcuffed and taken to Kempton Park police station. “It was very funny,” said Kuba Granicki, one of those taking part in the event. The group arrived at the Rhodesfield station in Kempton Park at 3pm on January 10 to travel to the Sandton station and back
again to Kempton Park. As soon as the doors of the train closed, the entire group stood up, took off their trousers and stuffed them into their hand luggage. “People were openly staring and laughing at us,” said Granicki. As they arrived back at Rhodesfield, Gautrain security guards “surrounded” the group and handcuffed them. They were taken to Kempton Park police station
where they were made to wait three hours while the police decided what to do with them. The group was eventually allowed to leave.
NEWSINBRIEF Mining: Some 128 mine workers died in 2010, which was a 24 percent improvement from the previous year, Chamber of Mines CEO Bheki Sibiya has said. “We are very sad about the 128 mine workers who lost their lives in 2010,” he told media in Johannesburg, before requesting a moment of silence. It was the best annual improvement since 2003. Sport: Goran Stevanovic has been hired as the new coach of Ghana’s national team. The Ghana Football Association has agreed to a four-year contract with the Serb, 44, a former assistant manager of the Serbia and Montenegro team and, most recently, coach of Partizan Belgrade. Sport: Louis Oosthuizen has added the Africa Open to his trophy collection following a
sudden-death play-off with Spaniard Manuel Quiros and Englishman Chris Wood at East London Golf Club. Crime: Four men have been arrested for allegedly robbing a Dutch couple at a lodge in Addo, Eastern Cape police said. Police caught the four, aged between 17 and 20, in an informal settlement known as Kilian’s Bos, Warrant Officer Gerda Swart said. Politics: The Congress of SA Trade Unions has pledged its “undying support” to the ANC, saying it would ensure victory for its ally in the upcoming local government elections. Relations between the ANC and its labour ally were strained in 2010 by a public sector strike and tension over the union federation’s failure to invite the ANC to a civil society conference. www.southafricamag.com
energy eff icient
With demand for electricity set to increase by about two percent in 2011, weâ€™ve come up with some novel ways to increase energy efficiency, save money and rescue the planet.
Become more Energy Efficient in 2011 BUSINESS
We have no option but to manage our natural resources in a sustainable way. We have no choice but to be eco-friendly. We have no choice but to develop a green economy
ew Year’s resolutions are all about improvement: improving your fitness or health, improving your life, improving your business PRESIDENT JACOB ZUMA or improving the lives of those Africa’s economy recovers. “We are targeting around you. Have you considered, every day a two percent improvement in output though, making energy efficiency your New Year’s resolution? According to energy services for the next two years… We will start doing things differently.” company Manoa it would be an easy way to He said the power utility has asked its achieve all of the above: a great resolution. large industrial customers, including mines, “It will not only help save the planet for future to reduce their energy use by 10 percent, generations, but will save you money right while Eskom would also ensure that its power now,” said Manoa’s Esmé Bluff. stations improved their outputs by buying The timing of Bluffs comment is superb. better quality coal from its suppliers. The Earlier this month Eskom CEO Brian Dames power utility had enough capacity to light up warned that demand for electricity is set to increase by about two percent in 2011 as South the country for the summer of 2011, he said. www.southafricamag.com 11
“If you are not using it, switch it off.” Despite warnings like this, most South African businesses have done nothing yet to reduce their carbon footprints, or reduce their usage, and are paying up to 30 percent more for electricity than they should be. Here are a few ways to help trim that power bill, ahead of expected tariff increases, and move your company towards greater sustainability…
Understanding your bill According to analysts, many companies are paying too much for electricity due to incorrect billing, so make sure you check and then re-check your bills. Most savvy firms have been able to slash power their bills simply by ensuring the amount they are paying is correct, that they are on the correct tariff and that the metering is correct.
Get a plan
How much are you using? The only way you can cut down on anything is to work out how much you are actually using (if you don’t know how much you are using in the first place, how can you possibly cut back?). You need to figure out where you are using energy and then develop an efficiency or reduction plan. 12
I got a bit ahead of myself there and mentioned the word plan. There are loads of ways to get your business to become more energy efficient, but you’re unlikely to make real progress unless you set goals, aims and objectives. Your energy saving plan needs to include key objectives (like switching off unnecessary lights).
Measure your usage Once you start moving towards greater energy efficiency, it’s important to keep track of your progress by measuring your electricity usage. This is the only way you’ll be able to investigate usage and develop further efficiency measures.
Become More Energy Efficient in 2011 business
Renewable energy This can be expensive, but you should perhaps think about getting some solar or other renewable energy source to supplement your existing supply. The goal is to become as independent of the power grid as possible, especially since rolling blackouts - worse than before - are expected to kick in next year. This is a great way to do it (despite the costs).
Tax incentives You may not be aware that if you’ve invested money on improving energy efficiency in your business over the past 12 months - or you’re planning to do so you could get a tax break of up to 55 percent. So, the question is, why delay? Start your energy efficiency measures today. END
South Africa’s energy problem
Employee buy-in Even the best-laid plans are doomed to fail if employees don’t understand what you are trying to achieve. You need to make sure they all understand the new drive to become energy efficient.
Energy shortages and spiking fuel prices are critical problems throughout the world, not least in South Africa where a sustainable and affordable supply is vital for driving a rapidly expanding economy and stamping out poverty. This, says Minister of Energy, Ms Dipuo Peters, MP, has led to energy security becoming a major priority for government. Diversifying the mix of energy sources, and using existing supplies more efficiently are the key ways to achieve such a goal. The recently published draft Integrated Resource Plan (IRP 2010), a 20-year electricity capacity programme released in October 2010, suggested South Africa will reduce its reliance on coal, and push for nuclear and renewable energy.
Switch off! The easiest way to start saving immediately is to switch off things like lights, appliances, air-con, geysers - in fact, everything – when they aren’t being used. You can make huge savings from this very simple measure. www.southafricamag.com 13
THE SPORT OF
THAT ANyONE CAN PLAy
Polo is increasingly affordable to watch, has become more accessible, and has never been more popular, as Rebecca Kent discovers.
here has been a push in recent years to broaden the appeal of Polo, not only in South Africa, but also on a global level. It has long been regarded as a game for the landed gentry. However, driven by aggressive marketing, arena polo â€“ which is played on a smaller field and with only three, rather than four players per team â€“ is being frequently staged to appeal to the masses. The Gaucho International will have the very dynamism that South African Polo Association (SAPA) hopes will boost participation rates of the sport in the Rainbow Nation. www.southafricamag.com 15
ENCOURAGE BROADER ACCESS
We have instituted a coaching programme to get kids interested or kids with talent to start playing and we also plan to roll this out to schools, where there has been little take up
SAPA is making a concerted effort to increase the uptake of polo. Currently the participation rate hovers around 500 players divided up into 40 clubs across the country. “We want to grow the number to 2000 and hopefully in next four-to-five years,” says Clive Peddle, at the head of SAPA. As well as a broad push to draw more women into the sport, the association is focussing its efforts on grassroots development. Unlike England, South Africa doesn’t have pony clubs to nurture young talent. So, it has been plucking budding talent from schools across the country, specifically in Johannesburg, 16
KwaZulu Natal and Plettenberg Bay. The kids are trained up with a view to turning professional. “We have instituted a coaching programme to get kids interested or kids with talent to start playing and we also plan to roll this out to
Crowd numbers have been growing, which is heartening. It’s a great game schools, where there has been little take up,” says Peddle. “Because of the cost people see it as an inaccessible game, but we would help by lending them a pony at clinic. If a child shows talent, we’d try to make the cost reasonable for them.”
SPONSORING UNDERPRIvILEGED KIDS For the past 15 years, the association has been trying to develop the game among underprivileged black children. It has a budget of R200,000 a year to offer bursaries. However, each child must show academic commitment before they are ‘rewarded’ with a horse, mallet and all the necessary equipment. When they’ve finished school, they are encouraged to join a club, which can further assist their development. The success of this scheme is difficult to measure. But Sbu Duma, 23, the son of a groomsman, has offered hope. Duma’s talent was sustained and he is now being trained among the best in the sport in Argentina and England.
GROWING POPULARITY You’ve got to hand it to SAPA for its aspirations. Introduced to South Africa by the British during the Boer War, the entertainment value has not wavered. “Crowd numbers have been growing, which is heartening. It’s a great game. You can bring a picnic and enjoy a day out. Plus, tickets don’t cost more than the price of a rugby ticket,” says Peddle. “We don’t want people to think this is an elitist sport. You can meet the players and they are all nice. Polo is one of the most exhilarating games in the world. Just get on a horse and it won’t be long before the bug bites.” End
UPCOMING FIxTURES February
18 Feb - 20 Feb Rocking Four League 25 Feb - 27 Feb Rocking Four League 26 Feb - 26 Feb Cape Town BMW 14 Goal International at val de vie. South Africa vs India
04 Mar - 06 Mar Cape Town Cup (4 Goal) 04 Mar - 06 Mar Plettenberg Bay Polo (8 & 2 Goal) 04 Mar - 06 Mar Rocking Four 04 Mar - 06 Mar Uitgedacht 11 Mar - 13 Mar Franshoek 11 Mar - 13 Mar Plettenberg Bay Polo (8 & 2 Goal) 18 Mar - 20 Mar Cape Town Cup at val de vie (4 Goal) 18 Mar - 20 Mar East Rand 18 Mar - 20 Mar Plettenberg Bay Polo (8 & 2 Goal) 25 Mar - 27 Mar Cape Town Polo 25 Mar - 27 Mar Crocodile Creek 25 Mar - 27 Mar Plettenberg Bay Polo (8 & 2 Goal) 25 Mar - 27 Mar Rakhoi
01 Apr - 03 Apr Bloemfontein 01 Apr - 03 Apr East Rand 02 Apr - 10 Apr Plettenberg Bay Polo (12 Goal) 02 Apr - 10 Apr Plettenberg Bay Polo (2 Goal) 02 Apr - 10 Apr Plettenberg Bay Polo (6 Goal) 08 Apr - 10 Apr Cape Champs at Kurland (6 & 2 Goal) 08 Apr - 10 Apr Kynoch Cup at Kokstad 08 Apr - 10 Apr Oaklands 08 Apr - 10 Apr Otto`s Bluff 11 Apr - 17 Apr Pre Easter Tournament (12 Goal) 11 Apr - 17 Apr Pre Easter Tournament (2 Goal) 11 Apr - 17 Apr Pre Easter Tournament (6 Goal) 15 Apr - 17 Apr Free State Champs at Sparta (12, 4 & 0 Goal) 18 Apr - 24 Apr Easter Tournament (15 Goal) Plettenberg Bay 18 Apr - 24 Apr Easter Tournament (2 Goal) Plettenberg Bay 18 Apr - 24 Apr Easter Tournament (8 Goal) Plettenberg Bay 22 Apr - 24 Apr Crocodile Creek 22 Apr - 24 Apr Kokstad (8 Goal) 29 Apr - 01 May East Griqualand Champs at Zwartberg (16+, 8 & 0 Goal) 29 Apr - 01 May Hammonia
lionâ€™s pride Imagine Africa without the lionâ€Ś Interview with David youldon, the real lion king. By Ian Armitage
lion’s pride PEOPLE
avid Youldon’s story is remarkable, a source of inspiration to me personally. Now, you may not know a lot about him but he has a lot to be proud of. In 2003, he gave up a highly paid job and a life of comfort in the UK to live on £10 a month with wild animals in Africa. The ‘Lion Man’ has since become the subject of one of the most compelling wildlife series ever – Lion Country. “The Antelope Park needed someone to run the volunteer programme; it gave me a chance to learn more about lions, it snowballed from there,” he says. To tell David’s story is to tell that of the plight of the lion. “My aim is to help draw attention to the need for urgent action to ensure the future of the African lion. “Our project is one of many organisations acting to help save this magnificent species and I hope that viewers of the show have been compelled to get involved, whether with us or others.”
Along with his colleagues at the African Lion & Environmental Research Trust (ALERT), David reintroduces lions into the wild that are from a captive source. “An estimated 200,000 lions lived in Africa as recently as 1975… studies in 2002 suggest that this number may have declined 80 or 90 percent,” he says. “More recent surveys suggest that not only are populations continuing to decline, but they are often doing so at an even faster rate.” Within West Africa, 10 of the 16 identified sub-populations of lions have now gone. “The principle reason for the decline in lion populations has been pressure on land use from an increasing human population. It has meant that the remaining suitable habitat for lions has become extremely fragmented. “Natural re-colonisation increasingly requires emigration of lions from an occupied area through inhospitable habitats filled with people. Indiscriminate killing in defence of life and livestock are prevalent outside protected areas. Whilst prey base depletion is a problem www.southafricamag.com 19
for lions in all areas.” The reduced genetic exchange between lion populations hasn’t helped matters. One study concluded that 45 percent of locations with lion prides have less than 70 animals. Inbreeding can have devastating effects. “The example has to be the population crash seen in Hluhuwe-iMfolozi in South Africa. “Incidences of problems related to inbreeding depression are likely to increase as sub-populations find themselves increasingly isolated.” Endemic and epidemic diseases are also likely to cause fluctuations in lion populations.
IS THERE HOPE FOR THE LION?
Unfortunately you can’t just take captive lions and shove them back into the wild
Saving the lion is a monumental challenge, made harder by an annual shortfall in needed conservation spending of around $460 million. These figures are just for Africa’s protected areas, Youldon says, which cover only around 10 percent of the land area. “Conservation methods to the tune of billions of dollars have so far failed to solve the problem of habitat degradation and species extinction. New methods are needed to support and extend existing conservation management options, whilst new funding initiatives are needed to pay for such actions. “The current trend in conservation ideology is that community participation in conservation initiatives is vital to success. Of course the end of that sentence is ‘we hope; because nothing else has worked’. The theory includes allowing communities to become the protectors and benefactors of wildlife. It does seem that this is the most likely solution to the long term challenges facing Africa’s wildlife.” The lion is the top predator within an ecosystem and is therefore ecologically important. Its removal is capable of producing great 20
imbalances in other species. “Unfortunately you can’t just take captive lions and shove them back into the wild… it always fails. “The lions we breed go as far as living in a semi-wild environment. It is fenced and protected: these lions can’t go into unfenced Africa as they have been raised by humans and have no fear of humans. “Those lions will have cubs in that release. They are the end product. They are raised in a natural environment with no human contact. They can be taken out and put back in the national park.” The use of captive bred animals as a source for reintroductions is generally considered a last resort for endangered species. Captive bred animals are, however, a logical source for reintroduction programmes in instances where wild populations are precluded from translocation due to genetic incompatibility and disease prevalence; where the captive population is secure; where the species can be easily bred in sufficient numbers; and where the species easily acclimatises to release, as is the case for lions. “We believe that using lions from a diseasefree captive source can supplement existing conservation management techniques and therefore create higher chances of success for maintaining this species in many parts of Africa where it is currently likely to become extinct,” Youldon says. So far ALERT has one pride of eight lions that has been successfully released into the next stage of the programme and they will be followed by a second pride in 2011. David says he would have liked to have a third pride release by now, however due to funding restrictions it wasn’t possible.
lion’s pride PEOPLE
“The pride that has already been released is expected to give birth to the first cubs in early 2011 that are intended for release into the wild. That will take place once those cubs are around two to three years old.” He says the lions rely on humans for security and as senior members of their pride to guide them. “As with any animal, the lions gradually get older and develop their instincts, and it is our role to step back and allow that to happen; to withdraw our contact. This is very difficult but so rewarding.” For each litter a member of staff is assigned to act the surrogate mother, whilst the other staff act as the rest of the pride. David has been fortunate enough to raise two litters from birth, and one of the females he raised, Phyre, has been released and is doing very well.
“Do I have any regrets?” he asks. “I have no regrets at all about my move to Africa. I am doing something about which I am passionate, and work alongside people who are equally passionate. Daily I get to experience the African bush and to see amazing wildlife, and of course the weather is better. Most importantly I get to be a part of something bigger than me or any individual in the organisation: something worthwhile. The lion is an incredible creature. It rightly enjoys its place as the king of the beasts. To imagine the possibility of Africa without this species roaming her vast wildernesses - to never hear the sound of their roars across the night - is a terrifying thought. To learn more about David, ALERT or the other conservation programmes in place visit lionalert.org. To volunteer go to http://lionalert.org/pages/volunteer.html. End
PROXA (Pty) Ltd is an independent provider of integrated and sustainable industrial water solutions: it provides clients with complete hassle-free solutions to all their water cycle requirements.
ry to think of an industrial activity that doesn’t use water: you can’t. Industries like mining, power generation and construction are all big water users. However, water management requires a lot of knowledge and experience, something few companies have, so they rely on specialists to outsource their water management problems, saving them money and the need to employ their own experts in what is for them a non-core activity. “We are there for companies that specialise in other things: we take on the water supply part of their operations,” says Elspeth Grahn of PROXA, a leader in this field. “Big players in mining, power generation and construction rely on us for water management and we save them money and enable them to focus on their core activities.” PROXA is the only truly integrated company in the field, says Grahn. It provides clients with complete hassle-free solutions to all their water cycle requirements. “Maintaining assets has not been a focus in South Africa and there hasn’t been much research on optimising infrastructure. With a 24-year track record, PROXA specializes in advanced industrial and mining water treatment.” Grahn is Director of Industrial Solutions for both PROXA and its parent WSSA. As she talks further about the company it becomes clear that it has a unique approach to the projects it undertakes: its operations and solutions are not reliant on any specific technologies, hardware components, or vendors. “Our objective was to combine the design and engineering expertise of PROXA with the operations and maintenance knowhow of WSSA to help our clients optimize their operations and better protect the environment,” Grahn says. “Our fully integrated, lifecycle cost approach ensures the most appropriate technology is employed at any given point in the processing solutions we provide from concept development to ongoing operations and maintenance. Combining our www.southafricamag.com 23
design and operations teams’ experiences make us different. PROXA brings the sustainability ingredient to our clients’ water operations. “The PROXA team develops customized solutions for our clients with a special focus on membrane based separation technologies: Ultra Filtration, Nano Filtration, Reverse Osmosis, Ion Exchange, Membrane Bio-Reactor, etc,” she adds. “PROXA is independent from any technology, equipment or chemicals supplier and has invested in a state-of-the art technology centre located in Paarl near Cape Town allowing us to select and pilot available technologies to solve our clients’ unique water challenges. Through our Total Cost of Ownership approach, our engineers and technicians design, pilot, install, commission, operate and maintain custom tailored value proposals helping our clients minimize their capital and operational expenditures and improve their environmental compliance.” While each industry has its own unique water needs, she says, there are four classes of water requirements across most 24
industries: feed water for cooling and process consumption; purified water used in advanced and clean industrial processes; wastewater, sludge management, salt management and disposal; and reused, recycled or reclaimed water. “PROXA’s services range throughout the water value chain from conceptual design to operations and maintenance of water and effluent treatment infrastructure. Typically, we will treat, desalinate, purify all kinds of waters and recycle industrial or domestic effluents to ensure that our clients receive the quality, quantity and availability necessary for their core processes.” PROXA’s business model is built on a clear focus on sustainable projects both from an economic and environmental perspective. “Our vision is to provide sustainable water solutions. Our mission is to work in partnership with our clients applying our R&D efforts so that our clients benefit from the best solutions, objective advice, best practices and complete peace of mind from conception to operations. Our values entail partnership, professionalism and customer focus,” says Grahn. PROXA’s solutions often result in
Dawning Filters is a South African company that has grown through offering its customers the best solutions to their ﬁltration needs and problems, backed up with after sales service. MAJOR INDUSTRIES SUPPLIED
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BAG FILTER SYSTEMS
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Supply and repair of Mechanical Seals and Pumps to various industries: ÜFood ÜWine ÜChemical Üand more André Swart - Sales Engineer PHONE: (021) 987 7325 CELL: 083 280 7689 EMAIL: firstname.lastname@example.org
12 Mostert Street, Peerless Park North, Kraaifontein, Cape Town 7570
significant reductions in plant size, which leads to lower capital and operating costs for clients and a far more efficiently managed water cycle on-site. Despite an adverse global economic situation, 2010 was a good year for PROXA and the business is growing. Grahn’s aim is for the firm to remain profitable while keeping clients satisfied through Continuous Improvement initiatives and service excellence. “PROXA has designed, built and operates a fleet of mobile and modular water treatment units that are deployed in numerous industrial and mining sites and treating 24/7 river and surface waters, acid mine water, effluents and sea water. We expect to grow this fleet so that we can rapidly deploy to solve emergency or long term water treatment challenges,” she says. “Our industry technology cycles have been accelerating over the past 15 years. Being able to continue mastering such rapidly evolving technologies is our priority. This is the purpose of our technology centre and R&D effort. Membrane based separation technologies are becoming more and more competitive in desalination or wastewater treatment. They represent a major breakthrough in our industry and will more and more complement
traditional biological treatment processes. This is especially true for water stressed countries where sea water desalination or effluent reuse and recycling will help release pressure on traditional water resources. “The technical challenges the industry will be increasingly facing are the treatment and beneficiation of by-products such as sludges, salts and biogases. Energy and chemicals optimization will also drive our R&D initiatives,” Grahn continues. “Remaining an innovation-led enterprise will be a key priority of management. “Finally, we will need to be excellent to remain a preferred supplier and partner of our client base.” Attracting and retaining talent is another priority. Apart from offering a safe and healthy working environment, PROXA’s primary aim is to further “push skills development within our workforce from engineers to operators”. “We have developed hands on water skills development programs and implement in various operations learnerships initiatives to create sustainable jobs. Multi tasking training is a great motivator for our operators,” concludes Grahn, who is looking forward to celebrating PROXA’s 25th anniversary this year. END
Autrex Industrial (Pty) Ltd
HYDROTECH DRUM & DISC FILTERS
For use in INDUSTRIAL, AGRICULTURAL & MUNICIPAL Applications: • Final Efﬂuent Polishing • Recycled Water Filtration • Membrane Pre-ﬁltration • General Filtration of Sea Water plus water from Lakes, Dams, Canals & Rivers • Machine Capacities from 10 to 1000 l/sec • Filter Rates from 10µ to 500µ Supplied in Southern Africa by AUTREX INDUSTRIAL (Pty) Ltd. New Street, P.O. Box 298 Durbanville 7550. South Africa email@example.com Ph: ++27 0219763073 Fax: ++27 0219761221
Devcotech is an electrical engineering firm that focuses on industrial reticulation and automation.
Excellence in Water Treatment
Our Electrical and Automation Engineering skill includes:
For more than 60 years sera productshave represented the highest measure of quality, safety and reliability in dosing, cleaning, disinfection,filtration and water treatment.
nEC&I Design & Costing nMedium & Low Voltage Distribution nMotor Control Centres & Drives nPower Control Electronics nIntegrated PLC & SCADA systems nInstrumentation nCommunication networks nRemote monitoring systems nProject Management
continuous improvement through innovative technology HEAD OFFICE: Cape Town, SOUTH AFRICA TEL:+27 (0) 21 976 4468 FAX:+27 (0) 88 021 976 5861 http://www.devcotech.co.za
< Dosing and feeding pumps < Dosing systemsand disinfectionsystems < Packagedplants to customerrequirements < Processmeasuringand controltechnology < Fittings and accessories < Extensivepre- and after-salesservice
sera DoseTech SA [Pty] Ltd. Unit 3 AirbornePark Cnr of Empire & TaljaardStr Bartletts,Boksburg, PO Box 15474 SouthAfrica Tel: +27 11 397 5120 Fax: +27 11 397 5502 firstname.lastname@example.org
Shell SOUTH AFRICA
Shell began operating in South Africa well over a century ago, initially trading in paraffin and kerosene to bring both heat and light to communities of Southern Africa.
ince energy is closely linked to economic growth, Shell’s presence has been inextricably tied to the South Africa’s industrialisation, infrastructure development and the increased use of transportation. “We are naturally proud of Shell’s long association with Southern Africa,” says Bonang Mohale, Country Chairman & VP of Shell Oil Products Africa, South Region. “This is an important and strategic country for Shell and we’re delighted that for several years now Shell has retained its preferred fuel brand status in this highly competitive market.” Shell operates a number of oil-related businesses in Southern Africa including fuel retailing, chemicals, aviation, marine, lubricants, commercial fuels and bitumen. The company employs around 1400 people and operates some 750 strategically located service stations, with a market share of nearly 20 percent. The company also refines crude oil through the 180 000-barrels per day SAPREF refinery, South Africa’s largest oil refinery, jointly owned by Shell and BP. Located in Durban, SAPREF contributes about nine percent to South Africa’s gross domestic product. The refinery also manages and operates the single buoy mooring (SBM) on behalf of various petroleum companies. About 77 percent of South Africa’s crude oil imports are handled through the SBM. Mohale, who joined Shell on 1 January 2009, has been at the helm of the South African company during one of its most challenging periods to date.
During 2010 we focused on bedding down the system, so we’re now reaping the benefits of a simplified, uniform platform which ultimately ensures a stronger focus on the customer
“The global economic recession had a profound impact on the oil industry,” says Mohale. He elaborates that oil prices peaked at about $147, then halved from over $120 a barrel the previous year to just below $60 per barrel in the middle of 2009. Against this backdrop, the company revised its short-term strategy to focus on reducing costs and generating cash. “The recession led to the market for our products collapsing, while our margins remained under severe pressure since our cost base had increased substantially. The matter needed to be addressed with great urgency hence the emphasis on cost management.” The focus on cash, Mohale explains, stemmed from a number of large projects that Shell’s Upstream business had embarked on that require significant cash injections for many years before they start to generate profits. Mohale set tough targets for his leadership team to ensure the company survived the recession and was able to take full advantage of an anticipated economic upswing. “Each Shell business and support function had to implement specific cost saving measures,” he says. “In addition, we implemented a freeze on all noncontractual spend – unless it was Health, Safety, Security & Environment (HSSE) or business critical. We also placed a moratorium on most business travel and, regrettably, we also had to reduce our headcount by about 200 staff.” The Retail business made deep cuts to its marketing budget by reducing sponsorship activities and exploring synergies across the different businesses to integrate marketing campaigns. The business also re-negotiated agency retainer fees to reduce costs. The Commercial business launched an asset-neutral project to improve 30
competiveness and also expanded its Deliver for Own Account (DFOA) model whereby a Shell distributor delivers product to customers on a commission basis. The Supply and Distribution (S&D) business set about renegotiating all its primary road transport contracts, while simultaneously reducing its vehicle fleet by about 20 percent. S&D also reviewed the company’s depot footprint in the process to optimise its network, eliminate inefficiencies and
Across the world Shell is concentrating its Downstream footprint on those markets that are considered core and where the company has the right combination of growth potential
reduce costs. “It was a grueling year, but we ended 2010 on a high note,” says Mohale enthusiastically. “We achieved all our numbers, especially our profit targets and most other business objectives.” But three accomplishments in particular stand out for Mohale. For almost two years, Shell South Africa had been implementing Downstream-One, a global project that introduces simplified processes and systems. The new system,
which includes a SAP platform, went live on 1 October 2009. “During 2010 we focused on bedding down the system, so we’re now reaping the benefits of a simplified, uniform platform which ultimately ensures a stronger focus on the customer,” Mohale says. Shell is also the first international oil company operating in South Africa to achieve a Level 3 Broad-Based Black Economic Empowerment (BBBEE) contributor status. Mohale says this was achieved through a concerted transformation programme, underscored by the employment of young black women through the company’s graduate recruitment programme and the development of black entrepreneurs through
Shell’s retail network programme. “We are proud of this accomplishment because it is a key milestone in our ongoing journey to build capacity and ensure meaningful participation of previously disadvantages individuals and groups in the economy.” This achievement is, however, preceded by several other transformation milestones. In 1998, Shell South Africa embarked on a refinery processing deal with its BEE partner, Thebe Investment Corporation. This deal was followed by an aviation marketing joint venture with Thebe in 2001. In 2002, Thebe acquired a 25 percent interest in Shell South Africa Marketing (Pty) Ltd and in 2008 Thebe’s equity participation was extended to Shell’s entire
I M P R I N T I N G
D I G I TA L
Y O U R
I M A G E
AS SPECIALIST LARGE AND SMALL FORMAT LITHO, WEB, SCREEN AND DIGITAL PRINTERS COVERING THE FULL SPECTRUM OF THE PRINT/ADVERTISING MARKET WE ARE PROUD TO BE ASSOCIATED WITH SHELL SA. WE ARE PRIVILEGED TO INCLUDE THEM IN OUR CLIENT BASE OF BLUE CHIP COMPANIES.
021 505 2200
email@example.com w w w . u s s g r a p h i c s . c o m
Sandile Magenuka - Director Pr. Eng, B Sc. Eng, MBA
Mthunzi Luthuli - MD B Sc. Eng, MBA
The company is 100% owned, managed and controlled by entrepreneurial Black South Africans emanating mostly from the Engineering disciplines, with sound corporate background and impressive business qualifications. The guiding philosophy of management is to deliver tangible benefits to clients in chosen markets and to create value at shareholder, managerial and operational levels.
delivering projects within the petroleum sector. The company has executed projects for Shell SA Marketing (Pty) Ltd worth in excess of R200 million in the past four years. Services offered have ranged from engineering design work to project management work. Work completed has been in the following disciplines: • Electrical engineering • Mechanical engineering • Civil & Structural engineering • Project Management
the following broad areas: • New fuel tanks (2 x 10 million litre) installations at Alberton depot • Bund wall design and installation • New COC facility • Rail siding fall arrestors • Storm water management plans • Power Supply and Motor Control Centres • Acculodes, control and instrumentation systems for fuel loading gantries • Lighting and Earthing systems • Fire fighting systems
MADLANDUNA Corporation has extensive experience in
The type or nature of the work completed or currently underway is in
Health, Safety, Security and Environment (HSSE) issues always feature
Meticulous Planning, Flawless Execution
prominently in the work that we do. This is particularly important in the petroleum industry because we have to work in environments that contain hazardous products. Consequently, we often conduct HEMP (Hazards and Effects Management Plans) and HAZOP (Hazards and Operations) studies to mitigate and/or eliminate project and operational risks. Cost Management forms an important and integral part of our project management plan as well. We strive to achieve
project and business objectives at the least cost possible. This is achieved by ensuring that engineering designs are innovative and efficient, that planning is rigorous and that project execution is disciplined. Amongst engineers and project managers at MADLANDUNA Corporation, there is 112 years experience in executing projects. The team is comprised of registered engineers, professional construction managers and project managers.
The company is well equipped to continue to provide Shell with engineering and project management services in a professional manner. MADLANDUNA Corporation will, as it always does, ensure meticulous planning and flawless execution in all the projects. For more information please contact Sandile Magenuka. Tel:+27 11 783 4949 Fax: +27 11 783 9814. E-mail: firstname.lastname@example.org Sandown House, Sandton Close 2, Corner off Norwich Close & 5th Street, Sandton.
value chain by acquiring 25 percent of Shell South Africa Refining (Pty) Ltd, which owns Shell’s refining interests in the country. Shell also actively supports various social investment programmes with specific emphasis on environmental conservation, education and capacity building. By way of example, last year Shell signed a three-year multimillion rand partnership with Food and Trees for Africa (FTFA). “The FTFA partnership will see a substantial greening programme being undertaken at 200 under-resourced schools across the country. Some 10 000 trees will be planted at these schools and numerous organic food gardens will be developed to support learner nutrition,” Mohale says. The third noteworthy highlight for 2010 is that Shell achieved its highest ever Brand Preference score. “A score of 34 percent firmly entrenches our position as
South Africa’s preferred fuel brand,” a delighted Mohale adds. “This proves that we are living up to our commitment to meet and exceed customers’ requirements for energy products, which we have done through extensive research, understanding customer needs, and providing the right products to meet these needs.” Mohale cautions, however, that as significant as the achievements are, complacency must never be allowed to creep in. “Our competitors will do their best to match our successes. But let me assure you, Shell people – as always – are up to the challenge.” Beyond South Africa’s borders, in the midst of an already tough year, Shell announced in April 2010 that it would be divesting from 19 countries in Africa where it has Downstream operations. Only Shell South Africa was not included as part of the divestment review, although its LPG business, known as Easigas, was included.
We’re in business to win
Assign Services is a proud service provider to Shell South Africa
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Mohale explains the decision is in line with a global Shell Downstream programme, The Three Keys to Winning, which drives the group’s selective growth ambitions, its desired footprint and its focus on operational excellence. “Across the world Shell is concentrating its Downstream footprint on those markets that are considered core and where the company has the right combination of growth potential, supporting infrastructure, concentration of assets, people and brand strength.” Shell is currently in exclusive negotiations with two joint buyers for the entire portfolio of African countries. Shell previously announced that the key features of a deal it is aiming for is one in which Shell would retain a shareholding in the businesses and the Shell brand would remain across most businesses and products including Retail and Lubricants. The company is also seeking to keep its current organisational structure 38
largely in place, thereby minimising potential job losses. Looking ahead to 2011, Mohale is optimistic that Shell South Africa will once again deliver on its various targets. “HSSE remains our first and most important priority, since running our business safely is the cornerstone of everything we do. Our goal to ensure zero harm to people and the environment is an absolute imperative so that everyone gets home safely.” Mohale says that an immediate and urgent challenge for Shell South Africa is to ensure uninterrupted fuel supply to commercial and retail customers. In addition, the marketing businesses will focus on profitable volume growth and increasing brand visibility and market share through fuel launches and site upgrades. “Operational excellence will remain a key theme with various targets set across the different businesses to improve the efficacy
1949 Unitrans LAA Ad 117.5 x 82.5mm.pdf
pragma pragma is proud to be associated with shell, as their strategic partner for physical asset management services. the service has bloomed into a comprehensive Facility maintenance contract for shell’s retail and commercial sites in southern africa, and an asset care centre for all shell’s african distribution depots. during this tenure shell has experienced a sustained improvement of equipment reliability and service levels. C
of our operations with particular emphasis on cost management and compliance with business principles and guidelines.” He adds that the people-related focus areas are on improving change management and accelerating training and competence programmes for staff. “We’re in business to win,” concludes Mohale. “The operating environment is tough and highly competitive, but our people have the requisite expertise, acumen and can-do attitude to rise to the challenge and ensure Shell remains South Africa’s leading oil company.” End Y
Leading Logistics provider to the Fuel and Chemical Industry in Southern Africa. Our track record speaks for itself Gold Award Gold Award Gold Award Gold Award Gold Award Silver Award Bronze Award Silver Award Gold Award Silver Award
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Logistics Achiever Awards 2010 Logistics Achiever Awards 2009 Logistics Achiever Awards 2008 Logistics Achiever Awards 2007 Logistics Achiever Awards 2006 Logistics Achiever Awards 2006 Logistics Achiever Awards 2006 Logistics Achiever Awards 2005 Logistics Achiever Awards 2004 Logistics Achiever Awards 2004
LAA Enviro Award 2010 Consumer Goods Council Awards 2010 for the Best Green Project - over R10 million Focus on Excellence Awards: Best Transport Operator of the Year 2006 | 2007 | 2008 | 2010
Award-winning Supply Chain Solutions from
The Spirit of Can Do To read more about our Supply Chain Solution successes please access www.unitrans.co.za
rainbow nation HELPING THE
South Africa has a modern and well-developed transport infrastructure. The roads are world-class. The countryâ€™s aviation infrastructure is the best in Africa. Rail is fast improving. It is all helping the rainbow nation shine. 40
department of transport FEATURE
ood quality infrastructure is a key ingredient for sustainable development and all countries need efficient transportation systems if they are to prosper. South Africa has world-class infrastructure, including a modern transport system: I think we proved just how good our networks actually are during the World Cup. We hosted a fine tournament, a tournament that is set to have a lasting legacy. According to FIFA, the 2010 World Cup attracted a total of 3.1 million spectators. This figure excludes the millions of people who travelled to the fan fests, public viewing areas and other entertainment centres to watch the matches. Many of them relied on public transport to get around. “In just one month, in addition to daily normal commuting services, millions of fans criss-crossed the country, with the majority of them using public transport, mainly taxis, buses and trains,” says Sibusiso Ndebele, Minister of Transport. “With regards to transport, there were not any reports of major accidents or incidents.” Given decades of under-investment in public transport, access and mobility was a major challenge in hosting the tournament, he says. “South Africa rose to the challenge and transport moved smoothly. The government identified public transport as the key legacy project for this World Cup and over the past few years a major capital injection into transport-related infrastructure and operations has begun to produce some important results. “Government invested billions of rand to ensure a safe, efficient and reliable public transportation system for the World Cup. This investment included customer-focused and world class airports, upgraded train stations and refurbished coaches to luxury buses and integrated rapid public transport networks www.southafricamag.com 41
Department of Transport FEATURE
such as the bus rapid transit system.” These investments will be enjoyed by generations of South Africans for many decades, Ndebele says.
GAUTENG TOLL ROADS South Africa is well on its way to overhauling its public transport system and the investment has been widespread. Gauteng drivers are among the many to benefit, namely through SANRAL’s R20 billion Gauteng Freeway Improvement Project (GFIP). The scheme will see freeways opened up to at least four lanes and in some cases, six in each direction. Other measures include improved interchange access, better lighting, traffic management strategies such as high occupancy lanes, intelligent transport management systems including live cameras and electronic signs that supply up-to-date information, and electronic toll collection. “Gauteng is the economic hub of South Africa,” GFIP project manager Alex van Niekerk tells South Africa Magazine. “The province has developed beyond its infrastructural capabilities, with roads unable to keep abreast of increasing traffic demands.”
The GFIP comprises numerous different phases to upgrade and implement new highways of an ultimate 560km highway network. The first phase, comprising the upgrading of 185km of the highways, is currently under construction and close to completion. “The GFIP concentrates on the N1 between Tshwane and Johannesburg,” says van Niekerk. “It also includes other major arteries such as the N3, N12, N17 and the R21 route from Tshwane to OR Tambo International Airport. “Bottlenecks at interchanges will be significantly reduced,” he adds. The relief is already evident, as motorists are enjoying much freer flowing traffic through the recently completed intersections such as Malibongwe, William Nicol, Rivonia and Gillooly’s. A total of 34 Interchanges will be upgraded in phase one. “What makes the project unique is that SANRAL is set to implement an open-road tolling system,” van Niekerk says. “A number of overhead toll gantries will be erected along the GFIP route in order to collect the toll fees. This ultimately means that the road users
Department of Transport FEATURE
will only pay for the kilometres travelled -calculated by the number of gantries passed -- and not for the entire stretch of freeway that is tolled.” This will be Africa’s first open road tolling system and the biggest implementation of its kind in the world. It will help ease congestion and delays in travel time, Van Niekerk says.
RAIL IMPROVEMENTS As well as improvements to our roads, we are also witnessing huge improvements on our rail systems: South Africa has targeted investments on road and rail networks to stimulate its public transport operations. In recent years huge strides have been taken to revive train travel as a viable public transport option, including the launch of the Passenger Rail Agency of SA (PRASA) in March last year, which was heralded as “a new era in passenger rail travel”. PRASA was tasked with effectively developing and managing “rail and related 44
transport infrastructure, to provide efficient rail and road based passenger transport services within, to and from urban and rural areas.” Today, Metrorail, Shosholoza Meyl, Autopax and Intersite Property Management Services, formerly under South African Rail Commuter Corporation (SARCC) and Transnet, are all part of PRASA. “Between 2007 and 2010, Government invested over R25 billion into PRASA,” says Lucky Montana, Group CEO for PRASA. “Our five year vision is to become the number one public transport operators in high-volume corridors in terms of market share… PRASA is already in the process of radically changing its business model, the nature of its operations, reviewing its funding model and undertaking a major technology upgrade. We are implementing a radical turnaround plan to ensure that the financial position of the Group is strengthened over the next five years in order to fulfil our government mandate of being the backbone of public transportation.”
Khuthele Projects (Pty) Ltd was established in 1998, as a transformed, autonomous company committed to representivity, economic empowerment & co-ownership. The firm focuses on transportation, business & development services. These services are Head Office in Tshwane: Second Floor, Falcons Place, 177 Dyer Road, Hillcrest Office Park, Hillcreast PO Box 1237, Pretoria, 0001 Tel: (+27)(12) 430-3223 Fax:(+27)(12) 342-3922 www.khuthele.co.za
Office in Western Cape: Unit GF02, Rostra Block The Forum, 1st Floor North Bank Lane, Century City, 7441 Private Bag X18, Milnerton, 7435 Tel: (+27)(21) 551-8572 Fax: (+27)(21) 551-9049
provided by a multi-disciplinary team comprising experienced Railway & Transport Engineers, Project Managers, Operational Planners, Public Transport Specialists, Transport & Maritime Economists, Town & Regional Planners, Legal & Policy Specialists as well as Institutional Reform Specialists. Office in Johannesburg: Oakhurst Building, First Floor, North Wing, 11 St Andrews Road, Parktown PO Box 31865, Braamfontein, 2017 Tel: (+27)(11) 481-0406 Fax: (+27)(11) 481-0306
Office in the Eastern Cape: Walmer Office Park, 1st floor north wing 13-17 Heugh Road Walmer, Port Elizabeth PO Box 6121, Walmer, 6065 Tel: (+27)(41) 581-0217 Fax: (+27)(41) 581-0197
department of transport FEATURE
NATIONAL AIRSPACE MASTER PLAN 2011–2025 The Department of Transport has also been working to improve air travel and recently announced the approval of the National Airspace Master Plan (NAMP), 2011-2015. The NAMP provides a strategic view and direction of airspace organisation and management within South Africa, as well as the notion of performance-based transition planning at a global, regional and local-level. It has been compiled in accordance with the National Civil Aviation Policy. The objectives of the Master Plan are “to service the airspace in accordance with International Civil Aviation Organisation (ICAO) Standards and Recommended Practices (SARPS) in such a way that it meets the requirements of all users and particularly, the international community”; “rationalise all managed airspace in accordance with ICAO SARPS in such a way that it meets the requirements of all users by a consultative process, strategically and tactically”; and “minimise all Permanent Prohibited, Restricted and Danger areas in accordance with ICAO SARPS and to facilitate the flexible use of airspace to the benefit of all users.” The Master Plan will, the Department of Transport says, “guide the National Airspace Committee (NASCOM), which has been established through the Civil Aviation Regulations, 1997, in the execution of its mandate, by providing measurable Key Performance Areas (KPAs), performance objectives, indicators and targets in contemplating amendments to airspace, procedures and infrastructure.” It is a well-timed measure and builds on what has been a successful period for South African air travel. Airports Company South Africa’s (ACSA) R20 billion airports development programme was completed on time for the World Cup and we are set to see further improvement in 2011 and beyond. 46
cHEVrOn sa as part of its commitment to improve safety on south african roads, chevron, operator of the caltex brand, has instilled a safety based culture through a range of training programmes which strive to protect both its employees and the south african public. chevron has approached road safety issues from multiple angles, focusing on both pedestrians and drivers through its arrive alive road safety initiative. this programme forms part of chevron’s partnership with the department of transport and strives to protect people living in high-risk areas from traffic related injuries and fatalities. since its inception, the programme has significantly curbed the ever-increasing number of fatalities and injuries due to road accidents. chevron also offers its drivers a wide range of classroom training programmes. all chevron employees receive driver safety training at some level, whether they are a professional driver or driving in their own personal capacity. “at chevron we are aware of the risks associated with our business and we believe that protecting people is critical to our success. we are therefore committed to ensuring that our employees have the skills to perform their jobs competently while at the same time ensuring that we make a lasting contribution to the communities in which we operate,” said suzanne pullinger, chevron’s communications manager.
“Through the National Transport Master Plan (NATMAP) 2050, we are working towards a dynamic; long term; and sustainable Land Use/Multi-Modal Transport Systems Framework for the development of networks infrastructure facilities; interchange termini facilities and service delivery,” the Department of Transport says. Tackling deaths on South Africa’s roads is also another major focus. To learn more visit transport.dot.gov.za. End
Always giving our boys a home crowd When the fans depend on you to get them to the game, you can depend on the cleaning power of Caltex with Techron速 to never let the side down.
perfect FOR A
R E S U L T. . .
Spray-drying company Sunspray Food Ingredients, located in Industria, west of Johannesburg, is South Africaâ€™s largest independent manufacturer of spray-dried ingredients.
sunspray Food ingredients FEATURE
pray-dried ingredients are a key component of many of the foods and beverages we take for granted. Naturally curious, and eager to llearn earn more, South Africa Magazine sent a reporter out into the field. He happened to come across Sunspray Food Ingredients, South Africa’s largest independent manufacturer of spray-dried ingredients. Talking with Managing Director David Watson, he discovered that the company uses several spray-drying techniques to create spray-dried ingredients for the food industry. Spray drying, for those that don’t know, is a process used to create powders from liquid or pulp. Rene Cross, Marketing Director, explained why this technology is beneficial. “The final product has a superior taste and flavour due to the encapsulation of flavours and it has a longer shelf life than normal dried powders: instead of lasting for only six to 12 months, spray-dried powder could last for up to two years.” The powders produced, are also easier to work with in certain production applications, than pulps or liquids. “We have really promoted the benefits of a spray-dried ingredient, in various food formulations and applications,” she said. Sunspray manufactures a wide range of powders, including meat flavours, fat powders, cheese powders, fruit and vegetable powders, honey powder, citrus oil concentrates, creamers, milk blends, egg powders and vinegar powder, which are used in baking, snack seasonings, soups and sauces to name but a few applications.
The final product has a superior taste and flavour... instead of lasting for only six to 12 months, spray-dried powder could last for up to two years
Sunspray Food Ingredients FEATURE
Firmenich Firmenich South Africa has been involved with Sunspray Food for approximately 15 years and in particular with David Watson, their Managing Director. The strong partnership between our two companies has resulted in a number of successful projects in which Dave has played a vital role in driving and ensuring their commercial success. With the drive into and increased focus on the sub-Saharan African region, Firmenich South Africa foresees many new opportunities for future collaboration with Sunspray Food, utilising their local manufacturing and development capabilities.
Caramel powder, which is used as a colorant in the food industry, is dried from caramel liquid and is exported extensively as well as being utilised locally in many food and non food applications as a colorant. The company also produces various other unique spray-dried powders such as Worcestershire sauce powder, fenugreek powder, molasses powder, beetroot powder, paprika powder, and a non allergenic creamer, Cross added. Customers include manufacturers of soups, baby foods, snacks, biscuits, jellies, cereals and beverages, plus many more. The company also produces a limited range of branded retail products and carries out a large amount of contract work for food manufacturers and flavour houses. “Sunspray operates from the Industria site and another smaller factory at Bronkhorstspruit that was acquired in 2005,” said Watson, who bought the firm 20 years 50
ago and says it is now focused predominantly on spray drying. Of course, these have been a difficult few years for all industries; food is no different. That said, the food ingredients business has held up well. Watson explained that the company has even grown its turnover in the last financial year. “The year has been a positive one. We are well ahead of last year and comfortably ahead of budget for this year,” he said. He went on to explain that several areas are doing very well like the caramel powder Sunspray sells, which is used in food items such as stock cubes, soups and stews. “These are selling in the market for several reasons,
Our ingredients are going out to our customers who are in turn increasing their expansion into Africa
Sunspray Food Ingredients FEATURE
mainly because they are economical and exactly what consumers look for in tough times,” said Cross. According to Watson, this period of success has been accompanied by an increase in marketing activities, as Sunspray looks to convince potential customers of the benefits of its products. The majority of the Marketing and Research and Development staff are technically qualified in food science or related fields, and so customers benefit from a great deal of technical support. “We have increased marketing activities for Sunspray’s own ingredient brands,” he said. “We essentially
refocused on core products, as well as adding the former Ovipro range of egg products, i.e. liquid and powder egg products to the basket we offer customers.” “Of course, we are successful too because we are able to do extensive new product development (R&D) for our customers who often do not have the resource for this within their own organisations. With the technical expertise in-house, we can often solve customer problems with a new specifically designed product, be it due to a raw material shortage or a cost savings exercise,” added Cross. “This has proven to be a big plus and we will continue to do that.” The financial year thus far
The year has been a positive one. We are well ahead of last year and comfortably ahead of budget for this year
Sunspray Half Page Ad.indd 1
2011/01/10 9:19 AM
Sunspray Food Ingredients FEATURE
has been so successful, and demand so strong, that Sunspray is looking to increase capacity. “We see volumes increasing,” Watson continued. “Meat flavourings have a lot of potential too.” The plan is for Sunspray to expand at Industria, where a sixth tower will be installed. The fifth tower at the Johannesburg site was added as recently as 2007, and was a secondhand plant that cost around R8 million. Of course efficiency has also been vital. Making efficient use of existing resources is very important, said Watson. “We have been doing a lot in this respect, optimising some of the products by changing towers, and also by optimising our production runs. We have made good savings and have moved away from more high risk 54
areas of business.” So what next for Sunspray? Well at present, only a small percentage of its turnover is accounted for by exports - mainly to neighbouring African countries. In the longer term Watson wants to expand this and extend it to other markets. “Export is not the biggest part of our business, but we are planning to increase it,” he said. “Our ingredients however are going out to our customers who are in turn increasing their expansion into Africa, predominantly - to many African countries in fact. They prefer to use spray-dried powders because of the stability of the product, as high temperatures are common in these countries, and in some areas refrigeration is non-existent. “The next step will be to put local agents on the ground.”
Kerry South Africa +27 11 457 7960 www.kerry.com
Food Ingredients & Flavours
Watson went onto explain that the current strong rand/dollar exchange rate was one of the main challenges facing Sunspray, as this encourages imports. On the other hand, this has been beneficial for certain product ranges where some materials used are imported. “In South Africa and, in fact, worldwide, we are facing a year of quite heavily rising raw material prices once again in 2011,” Watson said. “One of the areas I believe we could get some new product development going is actually substituting some of raw materials with our formulations. With our engineering of products we can possibly offer customers alternatives to help counteract the sharp price in some of the raw materials. We see that as an opportunity for product development as well.”
On top of that, there is potential in developing specialist product, like a non-allergenic coffee creamer, a recent innovation. “You have to follow world trends and then try to make sure that you go in the right direction with those opportunities as they go,” Watson said. “How do we aim to go on in the future? I think things will remain on the same track; at the same time, what we find is that we are adding value to a food ingredient – we are not just selling a one-off product, we sell a service as well, which is for example the R&D aspect. It is really all about the value added service we offer our customers” Sunspray has been ISO 9001:2000 accredited since 2003 and is also HACCP accredited. “For the perfect result, you need the perfect partner,” Cross concluded. END
For the perfect result, you need the perfect partner
POWERS ON WITH ITS
For leading retail brand Woolworths, the relationship between economic growth, social transformation, poverty alleviation and the environment can form a vicious or a virtuous circle. Executive Justin Smith heads Woolworths Good Journey, a five year plan aimed at changing the way Woolworths does business. And he tells colin chinery that virtue is bringing its own rewards.
or eight decades the Woolworths brand in South Africa has been synonymous with quality, innovation, and value for money. With 10 percent market share in foods and 15 percent in clothing, Woolworth’s goods are sold across 149 corporate stores, 51 international franchise stores throughout the rest of Africa and the Middle East, and 69 South African franchise stores nationwide. Customer service too is a distinctive marker, the 2010 Ask Afrika Orange Index placing Woolworths Clothing first for service overall and first for service in the Retail Clothing sub-category, and Woolworths Food achieving top spot in the Retail Food sub-category. “We try to benchmark ourselves against what international retailers and the food and beverage sectors are doing, while at the same time bringing a South African flavour to our sustainability context,” says Woolworths executive Justin Smith. And in Berlin last year (2010) Woolworths remarkable achievements in another sphere were recognised when it won the Responsible Retailer of the Year title at the World Retail Awards at the World Retail Congress, for the second time in three years. “Many people would compare us with Marks and Spencer, and we do have a strong affiliation with them. But at the same time as dealing with international challenges around the retail sector footprint, we have included within our corporate sustainability programme South Africa’s transformation and social imperatives.” Smith heads Woolworths Good Journey, a five year plan aimed at changing the way
Woolworths does business. Incorporating a series of challenging targets and commitments and centred on four key priorities - accelerating transformation, driving social development, enhancing environmental focus and addressing climate change – it was launched in April 2007 as a formalisation of Woolworths existing sustainability initiatives. “We’ve got a strong reputation in South Africa as leaders in this area and it’s very deeply engrained in our culture. We’d been dealing with a variety of social and environmental issues in the context of our business for many years, but in 2007 the decision was made to formalise our approach into more of a programmatic one.” It’s increasingly obvious that sustainable growth can only be achieved through paying greater attention to the world around us than has been the case in the past, says Simon Susman, Woolworths then CEO. “The links between economic growth, transformation, poverty alleviation, the environment and climate change can either form a vicious or a virtuous circle. “We have used the phrase the ‘Good Business Journey’ because this truly is a journey and there are no easy solutions,” says Susman. ”We are committed to meeting the five year targets we have set, and to do this we will be exploring new ways of doing things in many areas. Reaching these destinations will require significant behavioural and cultural change.” Was there external scepticism at the start of the Good Journey, a feeling that it was over-ambitious? “It was well-received,” says Smith. “We are a company known for its
We try to benchmark ourselves against what international retailers and the food and beverage sectors are doing
quality and leadership in a variety of areas, so there was an expectation from our customers and other stakeholders. “We get a lot of pressure from customers and other groups if we are not on track with meeting targets within the programme. Our customer base is very much among the upper income categories that have got a fairly good awareness of these issues, social and environmental, and they want us to manage these areas appropriately.” Woolworths programmes encouraging and protecting South Africa’s biodiversity include: Crop planning to address the impact of global warming. A strict policy of not selling products which might impact endangered species. The adoption of more environmentallysensitive farming practices throughout the supply chain. And the response from farmers; a notably independent-minded community? “It’s been a very positive reaction. In the first instance we’ve got very good long-term relationships with the majority of our food suppliers, so they are more open to sharing ideas and developing their programmes with us. “And because a lot of the initiatives in our’ Farming for the Future’ programme are saving farmers’ money by reducing input costs like pesticides, chemicals, fertilisers, they’ve seen very clear benefits to themselves. At the same time they are seeing on-the-ground environmental benefits. So it’s been a very positive partnership all the way through. “Overall, Farming for the Future has been a huge success, and has really changed the face of our approach to agricultural suppliers.” With a ‘South Africa First’ strategy, Woolworths tries to source wherever quality and product is available locally. Smith admits there are challenges. “Over the last few years the textile industry in South Africa has gone through a massive upheaval and a huge number of suppliers have closed or moved. “It’s a global phenomenon, the cost 58
competiveness when up against China, India and Bangladesh is just not there.” With water one of South Africa’s scarcest natural resources, Woolworths is targeting a 30 percent reduction in consumption through a programme encouraging suppliers to do the same. “The focus has been very much on using sustainability to identify opportunities for greater operational efficiencies. As a result a lot of our resource-use in areas like energy, waste and water has been positive on the environmental side, and has big cost saving implications.” Without a massive central budget, Smith says every programme put in place needs to be justified from a financial return perspective as well as environmental and social. “So it’s definitely not adding extra costs into the business.
“For our own staff we’ve got a very strong and broad programme around training and development, with a range of targets aimed at ensuring we reflect South Africa’s demographic and racial mix. The only way to do this is to show that there are skills and competencies at all levels in the organisation and a talent pipeline coming through.” Smith describes Woolworths 19,000 staff as “very passionate, very knowledgeable. A lot of the innovation in the product space comes through from the bottom up rather than being forced down from executive level. We have a strong staff involvement programme, very much driven at the business unit level with programmes appropriate to their business objectives, and this has created a lot of excitement and awareness across the organisation. It’s a very vibrant part of our culture.” In step with skills development, Woolworths is giving priority to BEE and equity ownership plans. And employees and employers are counting the gains. “For staff from a previously disadvantaged background there’s an opportunity to immediately gain share ownership as part of the BEE scheme where they get dividends over a time and eventually inherit the shares themselves. “This is aligning our staff more closely with the financial objectives, and creating an opportunity for more than 10,000 who wouldn’t necessarily have had share holding in the past to get that opportunity.” Among other results; a decrease in labour turnover. “This is very much related to the BEE scheme, employee benefits, and training development. We are seeing a shifting away from flexible labour into more full-time labour at store level.”
We have used the phrase the ‘Good Business Journey’ because this truly is a journey and there are no easy solutions “We’ve had success with other challenges for South Africa – recycling, and on internal energy usage were we’ve had an 18 percent reduction over the last few years - a really significant amount we think. “While we are on target with all our focus areas and targets, we would particularly like more progress on water in our supply chain where South Africa has huge scarcity and quality challenges. This is a real priority issue for us.” Success on this Good Journey is part driven through prevailing skills resources, a universal challenge in South Africa. Woolworths is active in both wider education and within its own skills advancement programme. “At a very basic level our corporate social investment is very much based on educational support, trying to bolster the education system.
Overall, Farming for the Future has been a huge success, and has really changed the face of our approach to agricultural suppliers
How important is it for South African corporates to pursue similar social and environmental objectives? “It’s absolutely crucial, even more so in a developing economy like South Africa because of the social upliftment work that corporates do, contributing massively to economic development in the country as a whole. “Parallel with this, South Africa has a tremendous range of biodiversity, and this means any development has to be done in an environmentally responsible manner, particularly around areas like water, energy and waste. “There’s a whole range of stakeholder expectations in which business must play its 62
part in creating economic development in a responsible way. At the same time quite forward-thinking governance codes and regulations really push companies into doing the right thing from a Social perspective.” And for corporate South Africa as elsewhere, social and environmental responsibility makes strategic good sense. “As a company you need to be doing the right thing to make sure you’ve got access to market customer base in the years ahead. It simply doesn’t help to have a short term focus whereby you make profits at all costs one year and have no future opportunities after that.”End
impErial lOgistics raisEs tHE Bar in ‘grEEn lOgistics’ together with renowned South African brands As South Africa focuses more intently on issues of such as Woolworths have made significant inroads in greening transportation within sustainability, supply chains hold substantial potential to the country’s Retail sector. contribute to the country achieving ‘Vision 2025’, which aims to improve SA’s energy mix by having 30 percent IMPERIAL Logistics recently invested of clean energy by 2025. One global logistics player in four Mercedes-Benz Euro 5 that is successfully integrating sustainability practices specification trucks, which run on low throughout the supply chain is IMPERIAL Logistics. sulphur diesel, with additives that further reduce toxic emissions. The balance of the IMPERIAL Logistics Refrigerated Services ver and above investing in ‘green’ fleet operated on behalf of Woolworths has technologies and assets, companies Mercedes-Benz Euro3 specification engines can unlock environmental and economic to ensure that minimum emission standards benefits by making practical changes to supply are maintained. chain processes and products. Addressing the problem of carbon emission and environmental Gavin Wilson, Managing Director of IMPERIAL pollution not only limits carbon footprint and Logistics Refrigerated Services says, “We waste, but optimises supply chain performance. recently invested in three semi-trailers and equipped one rigid unit with the ecoFridge, “There is a dire need to ‘green’ logistics, and nitrogen based refrigeration technology that is transportation in particular,” says Abrie de completely harmless to the environment. It is Swardt, IMPERIAL Logistics Marketing Director. anticipated that the use of the four ecoFridge “Almost 20 percent of the world’s total units, in the Woolworths distribution operation, delivered energy is used in the transportation will result in the elimination of 596 tons of CO2 sector, where liquid fuels are the dominant per year.” There is the added benefit of the source and locally, the Industrial and Transport absence of noise pollution when utilizing these sectors combined have historically used over nitrogen based units. half of the country’s energy.
“Through making the right procurement decisions, working closely with customers and business partners and the intelligent application of supply chain modelling aided by the necessary tools, excessive and inessential transportation is eliminated,” he explains. The result is a leaner, greener supply chain. Companies can make a number of changes with the assistance of Logistics Service Providers (LSPs). “Options for greening supply chain operations range from small process changes, such as retraining drivers, to substantial capital investments including setting up green Distribution Centres (DCs),” says de Swardt. Temperature control logistics specialist, IMPERIAL Logistics Refrigerated Services
Early adopters of sustainability based business practices are finding that ‘green’ projects can generate savings. “The ultimate challenge, however is to find ways that ‘green’ can simultaneously reduce costs, increase revenues and improve the environment – one that South African business can take on successfully by applying its inherent innovation,” concludes de Swardt.
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www.imperiallogistics.co.za www.southafricamag.com 63
Future MARKET OF THE
Acting CEO Jan mocke talks to ian armitage about Africaâ€™s largest fresh produce market and an ambitious strategy to improve competitiveness. 64
Joburg market FEATURE
he Joburg Market, formerly known as the Johannesburg Fresh Produce Market, is the largest market of its kind in Africa. It has an annual throughput of over a million tons and an annual turnover of more than R3.5 billion, dealing typically in fruit and vegetables, on sale to the public at wholesale prices. The produce comes straight from the suppliers, so the goods are fresh. “Joburg Market serves thousands of farmers from across South Africa who send their produce to be traded daily, ” says Jan Mocke, acting CEO. “We perform very well, earning producers billions of rand each year.” It is a commission market: farmers deliver their produce to market agents who then sell it to buyers. “The market and agents earn a commission,” Mocke says. About 15,000 farmers make use of this distribution channel. “We have adopted a one-stop shop principle: our premises host a number of businesses dealing in a variety of goods, banking facilities are available within the complex, and there are things like fast food outlets.” Joburg Market is the place of price discovery of products sold and a distribution point for fresh produce, Mocke adds. The price is determined by the availability of produce for sale and how much produce buyers demand for purchase.
the ‘Market of the Future’ programme. “We are working towards a new vision and are investing R350 million in the refurbishment and upgrade of market infrastructure,” Mocke says. “The ‘Market of the Future’ utilises new state-of-the-art technology and modern facilities that will dramatically increase the quality of produce sold, through things like rapid cooling units, optimisation of floor space, modern reach trucks and new technology to improve tracking and selling of produce.” It is a positive development that will address a number of key issues and will transform the way Joburg Market does business. Crucially, the programme will offer wider benefits to the farming and retail industry across the country and beyond.
The online ordering system is targeted mainly at international bulk buyers and offers secure online shopping. We have an expanding export component and the Internet and IT plays a role in that
‘MARKET OF THE FUTURE’ As well as being the acting CEO of the Joburg Market, a wholly owned entity of the City of Johannesburg, Mocke is also responsible for
Joburg Market’s online shopping system continues to transform the way the market operates and is enabling it to compete on a global platform and enhance its reach. “We have been a highly successful and a leading player in the local fresh produce sector for many years, but to compete on a global platform, the company has had to explore new ways of trading to enhance its global reach,” says Mocke. “The web is enabling us to do that.” Joburg Market became the first produce market in the continent to offer buyers the opportunity to place an order for fresh produce online, he says. “They can buy, view prices with all the grading and sizes, and choose preferred shipping method virtually, without having to visit the market.” www.southafricamag.com 65
Joburg market FEATURE
“The system is a very useful tool for buyers in neighbouring countries and beyond, who want access quality affordable fresh produce. “The online ordering system is targeted mainly at international bulk buyers and offers secure online shopping. We have an expanding export component and the Internet and IT plays a role in that.” Efficiency and energy use is another focus. The market is committed to reducing its carbon footprint and energy use and has recently installed ECUBE devices throughout its cold storage facilities. Significant savings are projected. “This is part of an ongoing commitment,” says Mocke. “Another area we focus on is security,” he continues. “The Joburg Market sees thousands of buyers daily and deals in a variety of goods. To ensure maximum safety for buyers, we have a number of security measures in place and continually train our staff and service providers so that they are on high alert for suspicious looking people. We regard security as being vital and have been very successful in curbing crime incidents. “We are implementing a new CCTV system including the installation of more cameras to improve technical security system and are confident that the measures we’ve put in place are up to standard to ensure that the market premises are at all times safe and secure for our customers, traders and all market users.” A smart card system for customers has helped security, he adds. “Transactions are all handled via a smart debit card system provided by the market. “We have been using smart cards instead of cash and it helps a lot in the sense that it takes most of the cash off the floors. We have banking facilities; people go to those points, if they have cash, to deposit it into their smart card account:
QUICK FACTS The Joburg Market accounts for 38 percent market share of the local fresh produce commission market industry. It is twice the size of the second ranked market in SA and bigger than 16 other fresh produce markets combined. Over one million tons (1 billion kg) of fruit and vegetable is sold at the Joburg Market per year. Globally, the Joburg Market is the biggest market by volume. Sees over 450,000 sales transactions conducted every month. Has over 17,000 registered buyers of which about 10,000 are regulars. Sees on average, about 4,300 vehicles going through its gates daily. all the buying would then take place with that smart card. It is also possible for buyers to electronically transfer money to their smart cards.” Mocke says Joburg Market is working on ways to further improve this service. “We are always looking at ways to streamline further, reducing the amount of cash on the market, and the next thing we plan is to have one centralised cashiering facility, which will be almost like a drive-in bank: people with large amounts of cash will be able to drive into it, to make deposit via the car window. That will further reduce risk.” There is a lot of positive and constructive change that the Joburg Market is undergoing and the company continues to enhance its service offering. It is an exciting time, despite current oversupply issues, and Mocke is bullish about the future: “We are excited about the future and being in the forefront in revolutionising the way fresh produce business is done.” End
We perform very well, earning producers billions of rand each year
Uhuru Engineering Projects and Consulting has successfully completed various challenging maintenance works for the Johannesburg Fresh produce market, and we are proud to say that we have met expectations with each task. Uhuru has gone beyond a point of duty to that of ensuring that we add value towards the customerâ€™s experience. Uhuru is a Black Youth owned entity specialising in civils and general building, with a CIDB grading of 6CEPE and 5GBPE. We also provide consultancy services within the built environment through our associates. Uhuru has recently completed a sports complex project for one of the schools in Soweto, which is amongst the best sports complex in Soweto.
Pheko Moatshe - Business Operations Manager Tel: +27 11 868 2372|Cell: +2772 046 7954|Fax: 0865866566|Email: firstname.lastname@example.org
GOVERNMENT SERVICE DELIVERy LIES IN
S U P P lY C H A I n
M A nAG EM En T SAyS eTHEKWINI
ethekwini municipality FEATURE
sandile ngcobo, Deputy Head of Supply Chain Operations at eThekwini Municipality, talks exclusively about how sound supply chain management has helped it become one of Africa’s best run and financially strongest local governments.
Thekwini Municipality is described by its peers as Africa’s best run and financially strongest local government. It continues to make strides forward and it is in no small part down to the work of those within its Supply Chain Management (SCM) Unit. “We aim for value for money on all goods, works and services purchased [by the municipality],” says Sandile Ngcobo, Deputy Head of Supply Chain Operations at eThekwini Municipality. “We have the eThekwini Municipal Supply Chain Management Policy in place and always look to improve the procurement process.” This, he says, means the municipality can obtain best value from the contracts it enters into and can minimise the administration costs of buying. Significantly, the unit is also responsible for helping to achieve local economic empowerment. “All procurement must comply with the municipality’s rules and policies as well as provincial and national laws,” says Ngcobo. The municipality currently spends in excess of R10.5 billion on all contracts and is committed to service delivery, he adds. “When I joined the municipality in 2007 there were a lot of challenges, some we still have and others we have resolved,” says Ngcobo, the former Chair of The Institute of Purchasing and Supply South Africa and the co-founding member of the Institute of Purchasing and Supply Southern Africa (CIPSA). “One challenge we faced and still face is that in the past partnerships or supplier agreements lasted for one particular project and then suppliers are faced with the same challenge of looking for other venturing opportunities; with no significant empowerment or experience sharing gained form previous project. That had to stop. We are making progress.” He says the unit has done much to change the way the municipality procures services. www.southafricamag.com 69
eThekwini Municipality FEATURE
“Our work allows [the city] to fully understand its spending patterns, from a demand management point of view, and means we can initiate programmes to achieve certain goals and targets. “We have a clear vision to improve. We have implemented a number of new processes and are now reviewing our technology. We have an e-procurement project going on. “We have a new targeted procurement policy, supply chain management policy, code of conduct and operating procedures,” Ngcobo adds. “We have also improved communication and information, which with standard documentation has made a huge difference. “We have a much better understanding of demand management, logistics, procurement and supply chain.” Inventory rationalisation and right sizing has been another focus.
“We have looked at our inventory, examining inventory rationalisation; right sizing and implementing basic Inventory Key performance Indicators,” says Ngcobo. Appropriately rationalising inventory management strategies is important in terms of performance. Too much inventory, or inventory which is poorly positioned, can have a big impact. “We have been working to ensure we can function with as little inventory as possible. But this takes a clear understanding of the various factors that should be considered,” Ngcobo explains. eThekwini’s supply regulations are garnered from government’s Municipal Finance Management Act (MFMA). “eThekwini has to comply with MFMA policies because we are [a] local government body and [we have] done a lot of work to align
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our procedures to [its] procurement best practices so that we can get the greatest possible value from our procurement activities. “When you see clearly what you spend, where you spend it, [and] why you spend it, only then can you transform things.” Following some successful pilot projects through our new category management process, Ngcobo is confident all of Durban’s residents will see benefits from the work the SCM unit is doing. “We are already seeing savings of greater than 10 percent on all pilot projects; these savings will become greater in the longer term and assist the municipally to deliver more services to our communities. “We are building much stronger relationships [with suppliers] now,” he says. “The work we have done has had a positive effect on them also: they are becoming more transparent. “We are in a position where we can properly evaluate them and make sure they are the right fit.” eThekwini has a clear strategy for how 72
suppliers are selected and managed. It does target specific businesses and suppliers are evaluated using a points system. Suppliers are registered and accredited on the Procurement Monitoring-FP Lite System, he says. “We have a database of suppliers. All suppliers who intend doing business and/ or dealing with the municipality have to be registered and accredited on the Procurement Monitoring-FP Lite System. This system accords the supplier preference points.” Clause 14 of the eThekwini Municipal Supply Chain Management Policy requires that the municipality keeps a list of accredited prospective providers of goods and services that must be used for the procurement requirements through written or verbal quotations and formal price quotations. The municipality is required to - at least once a year - invite prospective providers of goods or services to apply for evaluation and listing as accredited prospective providers. “eThekwini Municipality can only [deal]
eThekwini Municipality FEATURE
with suppliers that have been registered and accredited,” says Ngcobo. The only way the municipality will issue orders, he stressed, is to suppliers that are registered and accredited. The system works. “We have really improved our procurement competency and received an Institute of Purchasing and Supply South Africa Appreciation Award for its procurement training and skills development work in the public sector,” Ngcobo says. “We have raised procurement knowledge, in the industry and within eThekwini’s supply chain operations, to an expected level of professional competency. “I feel that we have made real improvements in the skills [of our supply chain personnel] and are on the right track; this is in line with our centre of excellence programme. “Of course it is early days, but we will see more benefits in the future as we get better understanding of things through the tools we have in place, the technology we are investing in and the systems we have.”
Key priorities are as follows: Increasing the use of local resources. Redressing skewed employment and ownership patterns through Black Economic Empowerment. The creation of opportunities for job creation and poverty alleviation. Stimulating skills development and transfer. Fast-tracking the growth and ensuring the sustainability of Small, Medium and Micro Enterprises (SMMEs). Could other municipalities learn from this? Almost certainly: “We have already started discussions with our provincial treasury department to start collaborating on key strategic supply chain initiatives in the province,” concludes Ngcobo whose philosophy of life is “when we wake up in the morning; we have two choices. Go back to sleep and dream or wake up and chase those dreams … the choice is yours.” END www.southafricamag.com 73
Banana T issue cultured
Plants in demand
Du Roi Laboratory provides highly specialised and focused agricultural products and services to customers regionally, nationally and internationally.
du roi laboratory FEATURE
or consumers in temperate countries, the banana is the perfect fruit. It is easy to eat, delicious to taste and packed with energy, vitamins and minerals. However, less than 15 percent of the 100 million tonnes of bananas and plantains grown in the world each year find their way to the supermarket shelves of importing countries. The remainder are grown in millions of backyard gardens of farm households, mainly in tropical countries. There, the produce is eaten locally, most often as a staple food, or sold to support a local cash economy. Consequently, millions of lives depend on the humble curved fruit. In subtropical South Africa, some 250 growers farm about 12,000 hectares of Cavendish-type dessert bananas. While it is an important crop with high local demand and consistently good prices, South African bananas are not exported, mainly because certain climatic constraints lead to quality problems which are not acceptable on the discerning markets in Europe. Overall, however, sub-Saharan Africa produces 30 million tonnes of bananas and plantains, providing staple food for more than 100 million people, and accounting for 35 percent of global banana and plantain production. As described by Thomas Dubois, a Belgian scientist with the Consultative Group on International Agricultural Research (CGIAR), “We cannot underestimate the importance of the banana to Africa. What rice is for China, and potatoes are for America, that’s what bananas are for certain countries in Africa.” Bananas and plantains are particularly susceptible to certain debilitating diseases, to the extent that media warnings were recently given that edible bananas may disappear within a decade. While this is not likely to
happen, it does emphasize the need to develop new disease-resistant varieties to counter the threat of diseases like panama disease, black sigatoka and various banana viruses. The vulnerability of bananas to these diseases arises from the lack of resistant varieties as well as from the practice of propagating new planting material vegetatively by taking suckers from infected plantations. Farmers are often unaware of any infection and unwittingly spread the diseases further afield. An alternative approach has been revolutionizing the export banana industry over the last 20 years, which for some countries has been a major component in its rehabilitation. This is tissue culture – propagation by cloning, using the growing point of a banana sucker. These are multiplied up in a laboratory, rooted, acclimatized and grown on for field establishment. The main advantages of these propagation units are: (a) Plants are free from diseases and nematodes (b) Plants are juvenile, vigorous and physiologically- superior, leading to higher yields in the ﬁ eld (c) The ability to multiply new varieties rapidly for distribution (d) The ability to transport any quantity of plants long distances, rapidly and safely
We cannot underestimate the importance of the banana to Africa
In Letsitele, in the Limpopo Province of South Africa, is one of the world’s foremost banana tissue culture laboratories, Du Roi Laboratory. Du Roi Laboratory is one of three large banana tissue companies worldwide and the main cornerstones of this organization - proven quality of product, breeding of competitive new selections, virus indexing initiatives and excellent customer relations www.southafricamag.com 75
Du Roi Laboratory FEATURE
Banana bunches in pack shed ready for packing
have contributed significantly to the company’s worldwide image and business performance. Du Roi laboratory specializes in the production and distribution of disease-free, virus-indexed, and genetically-improved tissue culture banana plants, mainly of the Cavendish dessert type which is most in demand. Here, about eight to 10 million banana plants are produced annually for sale to the Southern African market, as well as to West and North Africa, the Middle East and South and Central America. Large multinational companies of 3000 or more hectares, with massive funding and technical resources and expertise, and which service the major importing countries like America and the EU, make up one segment of the Du Roi client and customer base. Then smaller commercial growers with farms of from 50 to 500 ha, and who sell their produce to local markets, make up another segment of Du Roi business. Finally, there is a vast number of smallscale banana farmers throughout Africa who desperately need the tissue culture technology of Du Roi, but where access to financial assistance, chemicals, and technical advice, are unavailable. 76
According to Dr John Robinson, a horticulturist and Technical Manager at Du Roi Laboratory with 30 years experience in banana research and management, the small-scale farmers are really struggling with a lack of access to technology and finance. “The use of tissue culture material would benefit them tremendously and provide a stock of disease-free plants to establish in clean land and arrest the spread of soil-borne diseases. “They also need disease-resistant material to be able to withstand the onslaught of endemic air-borne diseases, in an environment where they cannot afford expensive chemical control methods, or have access to the best horticultural advice. This is a challenge that Du Roi is trying to take up with international banana organisations like Bioversity (previously INIBAP), and the National Agricultural Research Organisations in Countries like Uganda and Kenya, who are also trying to help the small-scale farmer.” Du Roi Laboratory has focused on the improvement of their plant material. Dr Robinson says, “I must emphasise that Du Roi Laboratory produces genetically –improved
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Du Roi Laboratory FEATURE
Du Roi is situated in the heart of Limpopo in South Africa, one hours drive from the Kruger National Park
plants, not genetically-modified plants or GMO’s.” The breeding programme, based on the phenomenon of somaclonal variation, has been a feature of Du Roi’s technical innovations over the past 10 years and many superior, elite single clone selections have been produced, internationally evaluated and commercially distributed with good results. He stresses that the Du Roi breeding programme has concentrated on horticultural traits such as shorter plants, shorter cycles and higher yields. “The tissue culture process ensures that thousands of these genetically-improved plants are produced from one meristem, and are entirely disease-free, but unfortunately not disease resistant. “The latter will depend on the continuing efforts of Bioversity and various National Research Organisations, to create the resistant selections that are so much in demand by consumers, growers and by tissue 78
culture laboratories like Du Roi.” Soil fertility is another production issue that is a concern to small scale farmers and commercial farmers alike. On the one hand, small scale farmers do not have access to expensive chemicals and are forced to use litter and household refuse as the main source of nutrients. Ironically, the large commercial companies do have access to chemical fertilizers but often overuse them to the detriment of soil health and ultimately productivity. In this respect Du Roi Laboratory is very active in promoting organic programmes to its grower clients, and the main mother block of Du Roi elite single clones is managed on organic principles to emphasize what can be done to build up soil fertility, and to demonstrate this to clients. This is undoubtedly a relevant and important marketing tool for the Laboratory. Du Roi laboratory also has a new insectproof mother block under plastic, in which
mother plants are grown in sterile medium. More and more clients are demanding that their plants are not exposed to pests and diseases of any sort from the original mother block to the final destination, and this facility does just that which distinguishes Du Roi Laboratory from many other similar laboratories. In addition, the plant material produced from such a mother block can be traced back by the grower to a single mother plant in the Du Roi fields. This traceability is another unique feature. Being at the forefront of new technology to ensure quality plant material and excellent advice to customers, are important cornerstones to the Du Roi business. The production Manager has an M.Sc in plant virology which is obviously hugely beneficial to the production protocols of the Laboratory which focus to such a large extent on virus indexing and production of virus-free stock for international distribution (another cornerstone of the Laboratory).
The technical expertise of the Technical Manager and Production Manager are put to good use in the training programmes, farmersâ€™ days and banana study group meetings which are offered by the Laboratory to farmer groups in all production areas and in all different countries where the plants are sold. Technical bulletins and management documents on all aspects of the field management of bananas are produced and distributed to all clients as and when required by them. After-sales service visits to farmers in all countries are regularly made by technical staff as well as by the Marketing Director, Alan Davson, who over many years has built up excellent customer relations and a â€œhands onâ€? approach to solving any problems the client may have. Du Roi laboratory believes many of these technical inputs are unique to the company. Quality management is a strong focus at Du Roi Laboratory and this is continually emphasized to the 140 permanent staff that are involved at all stages of the production www.southafricamag.com 79
Du Roi Laboratory FEATURE
cycle. As evidence of this commitment to quality, DuRoi is now at the final stages of accreditation for ISO 9001:2008. The General Manager, Anne Davson, says “skills shortage is a problem for our company, especially being located 400 km from Johannesburg in a small country town. We keep our eyes open for promising young students, support them to the point where they become qualified, and then offer them employment in the company with opportunities for further development and recognition”. She continues, “We have intensive inhouse and external training programmes for all members of staff during our out of season months (end of March to August) and with more than 50 percent of our employees being semi-literate, we offer adult literacy skills in English up to matric level. We find that black South African women have been underprivileged, thus here in our laboratory we focus on the upliftment and empowerment of these women. Our intention is to develop some of those in our ranks up to management level.” Continuing with the social fabric of Du Roi Laboratory, Anne Davson says that addressing health issues and challenges in the local community, which directly impacts on human resource at the laboratory, is another Du Roi
target. “We have linked with the ‘International Organization for Migration’ (IOM) and a local implementing partner, ‘Choice’, and are working to address all health-related issues, focusing on life threatening diseases including HIV and AIDS. We are addressing the stigma attached to AIDS and AIDS-related diseases, thereby changing lifestyles and improving quality of life. There are gender issues in Africa with quite a bit of abuse against women, which is also being addressed in this project. Most of our female employees are single mothers, and we have a crèche with fully-trained staff, offering care, nutrition and teaching up to pre-school age”. Du Roi Laboratory has been perfecting the art of tissue culture production and the distribution to clients worldwide for 20 years. John Robinson summarizes as follows: “Growers know they will get from DuRoi a quality product, genetically improved, stable and disease-free. Besides that, every related aspect is addressed during the production, distribution, after-sales service and technical assistance to clients, as well as in the ongoing development of our company staff. All of these attributes are encompassed in the company logo ‘FOR MORE THAN PLANTS’.” END
Children at play in Du Roi creshe 80
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FIRST IN, LAST OUT
Heroic and under-valued, fire fighting is one of the noblest professions says Fire Raiders CEO Trevor Fiford. And this executive with a cause tells Colin Chinery how the Boksburg pace setter is geared to become industry leader throughout Africa.
Fire raiders FEATURE
he fire service is “the noblest service in the world,” says Trevor Fiford, “the industry where you find people running out of burning buildings to escape and fire fighters running in to save.” 30 years in fire fighting, Fiford is an executive with a cause; MD of Boksburg-based Fire Raiders serving the fire, rescue, hazmat and disaster management departments throughout South Africa, Africa and the Middle East. It is one of the top three companies in its Southern African sector, and over the next five years Fiford intends Fire Raiders to become the key player throughout the Continent. “Fire is the most devastating force in nature. Every person in the world deserves a top class service protecting their lives and their property against fires.” Fire Raiders manufactures and supplies the highest specification fire engines and trucks, supporting its clients with the resources of a unique quality-driven single source solutions company. Products and services cover every aspect of the Fire, Rescue, HazMat (hazardous materials), EMS (emergency medical services) and Disaster Management industries. It is a ‘one stop’ shop unique in Africa; the cream says Fiford, that has risen to the top. “We are often asked about our success in the African market, and each time we respond with the same answer - Fire Raiders operates in a service driven industry while all our competitors operate in a supply driven industry.” The quality of the product and the service delivery, coupled with Fire Raiders close association with companies such as USbased Pierce and Oshkosh, and the Finish headquartered Bronto Skylift – leaders in their sphere of operations - makes for a
The fire service is the noblest service in the world
Fire Raiders FEATURE
combination very difficult for a competitor to challenge, says Fiford. “We are proud to be their representatives, bringing the best fire apparatus quality and innovation in the world to our shores. “It is and always will be our intention to serve the client throughout all his requirements, from products supply, product maintenance and support, all the way through to consulting on the biggest of issues that our clients might face.” Fire Raiders manufactures fire engines from the chassis up, the chassis being supplied by Mercedes Benz, Scania, Iveco, Hino and MAN, with the large components being sourced from Britain and the USA. From this point on manufacturing is carried out locally. Suppliers are of the highest quality and material selection specific. 10 years ago 60 percent of components – excluding the chassis cab - were imported. This is now down to 42 percent with the rest manufactured under one roof at Fire Raiders. “We can build 125 trucks a year and are currently running at 80 percent of production capability. Over the next 12-24 months this 84
is planned to rise beyond 90 percent. Once we’ve achieved this we will be building a new R18 million facility capable of producing 250300 trucks a year. “We operate as a service industry. And even though the manufacturing side takes up 90 percent of our capital we focus primarily on service. And because of this we have the major share of the service contracts adjudicated in South Africa every year, with an average contract in excess of R3 million. Some of the service contracts that have been concluded include a three year contract for servicing the complete fleet of fire fighting vehicles for the South African Army; a 10 year service contract to service the complete fleet of 102 emergency vehicles for the City of Johannesburg, courtesy of Fleet Africa as well as numerous contracts with local authorities. We will not sell a fire engine into an area or to a client where we are unable to provide him with a top class service. “And I don’t just mean a responsive service. I mean one where we can go back on a quarterly basis, test and service the vehicles. This quality of service is critical and
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TEL: 011 823 1473 FAX : 011 823 1608 EMAIL: BRENO@GLOBAL.CO.ZA 91 RIETFONTEIN ROAD, BOKSBURG WEST 19 BROADWAY ST, BEZ VALLEY
Fire Raiders FEATURE
one of the reasons why premium companies like Pierce, Oshkosh, and Bronto Skylift have chosen Fire Raiders as a partner in the African market. “As I say, most of our competitors operate in a supply industry, and for us this is the big big differential. Our methodology of manufacturing fire fighting vehicles is unique in Africa, and we have longevity built into our products. The quality we put into our products is unique. “We are not the cheapest in Africa by a long shot, in fact in most instances we are the most expensive. We made a conscious decision six years ago when the market started to change to keep our quality as high as possible. We would rather our engines help save lives and last a full 10-15 years service, than fail due to cheaper more accessible parts.” Fiford, 54, describes the South African fire fighting market as “viciously populated. And once we go further afield in Africa it gets 86
worse as a small player competing against most of the global players.” While African sector leadership spearheads the corporate Five Year Plan, competitor re-positioning is Fire Raiders major challenge, with funding close behind. “Funding for our industry is very limited in South Africa and it’s not done with enthusiasm by the commercial banks for whom it’s a niche and unknown market. So when you need to grow like this you have to ensure you have the right funding in place and not utilising your own working capital to sustain it.” But self-funded, with support from commercial banks, Fire Raiders operation has an exceptionally strong financial profile. Product environment is another concern. “Africa is different to Europe and different to the USA. Here the market is becoming more Africanised, which means the vehicles are not as sophisticated and have to withstand severe operational requirements, both
travelling and at pumping operations at incidents. So we have to keep pace with the changing environment. “And of course as throughout the country, there’s the skills challenge. As we grow we have to take on additional personnel with the right skills, and we struggle with electricians and welders for example. But we strive to overcome, deploying a lot of time, effort and money in training and upskilling, and do a lot of in-house promotion before moving into the outside market looking for skills. We are very much a personnel-driven company and do our very best to look after our people, one result being a very low staff turnover.” Now in its 14th year, Fire Raiders has been developed by a handful of management, specific individuals with says Fiford, a passion for the company and its sector. The combined industry service of top management here is 310 years, an impressive statistic, but one not without its dilemma.
“We are now having to work very hard on a succession plan to ensure that when these individuals step down we have people equally capable who can take over from them. Our communication channels are very flat; we don’t have a huge hierarchy of management and sub-management. What drives our company more than anything else is passion; the passion of the individuals and the commitment to a common goal. We have a very very clear mission statement, and as well as that a very very strong ethics policy. “At the end of the day we are just a bunch of fire fighters building fire engines and supplying a service to an industry we feel very passionate about. The fire service is one of the noblest professions in the world, people placing their own lives at the most extreme limit of risk. And outside of an incident like 9/11 where they were lauded and even today spoken of with a huge amount of respect, fire fighters always tend to be under-estimated. We really don’t show them the appreciation we should.” END
EARTH-MOVING TO P a y s O ff F or G lobal F ront - R unner F oskor
As one of the worldâ€™s largest producers of phosphate and phosphoric acid, Foskor is proudly South African.
ixty years ago the Government-owned Industrial Development Corporation, created Foskor in a bid to make South Africa independent from phosphate imports, since then the Midrandheadquartered company has grown rapidly to become one of the world’s largest producers of phosphate and phosphoric acid, and is proudly South African. Foskor operates from two main locations, the Mining Division in Phalaborwa in the Northern Province (Limpopo) and the Acid Division in Richards Bay, Kwa-Zulu Natal. Strategic expansion has seen its primary business activity extended from basic mining to the current focus on the beneficiation of phosphate rock, and the production and export of phosphoric acid and phosphate-based fertilisers. Foskor is the only vertically integrated phosphate producer in South Africa. The operations in Phalaborwa mine and process phosphate rock concentrate - crucial for stimulating and raising crop yields, while the Richards Bay plant manufactures sulphuric acid, phosphoric acid and phosphate-based granular fertilisers, using phosphate rock as a raw material. Some 84 percent of Phalaborwa’s phosphate rock concentrate is railed to Richards Bay and the rest sold externally. The Acid Division exports phosphoric acid to India, Japan, Bangladesh, the Netherlands, Mexico and Dubai. Products made from phosphoric acid include catalysts, rust proofing materials, chemical reagents, latex, dental cements, tooth whiteners, toothpaste, disinfectants, food supplements, carbonated beverages, waxes, polishes and animal feeds. The macronutrients in fertilisers are nitrogen, phosphorus (in the form of
phosphates) and potassium—usually described as NPK. World demographics and climate change mean that demand for these ingredients can only rise. The seemingly exponential growth in global food production sent the price of fertilisers skyrocketing in 2008 and it was feared that within decades there could be a world shortage of phosphate. In fact the price of some fertiliser more than doubled in 2008 on the back of soaring demand from growing economies and countries controlling exports of raw materials for their own use. But the 2009 global financial crisis saw demand slump as fertiliser use dropped following declining product prices. But post-slump global demand is set to increase as food production ramps up, with the fertiliser market approaching a critical milestone in which demand returns and supply is constrained. According to a report by the International Fertiliser Industry Association, demand is set to increase by 4.8 percent in 2011, with consumption set to hit 188.3m tonnes by 2014/15. All this gives South Africa’s only indigenous phosphate mining and processing company a sustainable future, both for the rock concentrate that Foskor mines and feeds to its processing plants and for the phosphoric acid and granular products it sells to the world fertiliser industry. Up until 2009, Foskor took around half its phosphate production from above ground stockpiles. It was economical and far easier operationally, with these resources having been partially mined and processed by the neighbouring Palabora Mining Company for the last 50 years. “It’s obviously always cheaper to process above ground stockpiles because you’ve already
We had our first blast in the South Pyroxenite Pit on 22 September 2009
Left: Johan Horn, vP: Mining Right: Mr Alfred Pitse, CEO & President of Foskor
incurred in the past the drilling and blasting costs. It’s always been cheaper to process that material which was stockpiled at a much greater rate than the processing could happen,” says Foskor’s VP of Mining, Johan Horn. “These stockpiles came to a point where they were going to be depleted, and Foskor had to change over from processing above ground stockpiles to mining and processing hard ore from a new mining operation or a new pit.” In doing this, Foskor was faced with the monumental task of meeting around 50 percent of the material required to feed its plant. And here in South Africa, as elsewhere, opening up a new pit involves a lengthy process of obtaining licenses, approvals, and mining rights. “We were successful in obtaining those mining rights and approvals and we had our first blast in the South Pyroxenite Pit on 22 September 2009, which allowed us now to start the other preparation of that pit in order for us to mine material from that pit in April 2010,” says Horn. This new source guarantees an ore 90
source for at least the next 70 years. “We have now fully-converted all the plants to be fed from the South Pit. The phosphate beneficiation plant has four production streams, of which two streams are fed from the North Pyroxenite Pit, and two production streams are now being fed from the South Pit, compared to above ground stockpiles in the past.” For 50 years Foskor was wholly-owned by the South African Government through its Industrial Development Corporation, but in 2006 2.5 percent of the business was sold to the Indian based Coromandel Fertilisers, now Coromandel International Limited. “We also then entered into a Business Assistance Agreement with them whereby they assist us to improve the business,” says Horn. Two years ago the companies converted their Business Assistance Agreement into a Technical Assistance Agreement, with Coromandel assisting Foskor on technical as well as business issues. Today Coromandel is a 14 percent shareholder in Foskor. Foskor has dedicated considerable resources to attracting and developing
scarce skills and formalizing instruction and up-skilling procedures to continue raising production standards. And by giving all staff equal access to training opportunities and exposure to international expertise through a technical assistance agreement with India, Foskor supports both individual career advancement and the company’s development. In 2008/9 Foskor was named Employer of the Year 2008/ 9 by the Zululand Chamber of Commerce and Industry, the Chamber also honouring Foskor with an ‘Above and Beyond’ Award for ‘Best Service Excellence’ and a ‘Premium Award’ as the region’s top performing company. Among winning factors highlighted were Foskor’s commitment to skills development through mentorships, learnerships, offering incentives for higher learning and raising HIV/Aids awareness. Having demonstrated its capacity for growth, development and overcoming such unavoidable obstacles as switching sources for 50 percent of its product, what comes next? For the Foskor Group, the strategic goal
is diversification of its markets and products and improvement of its position on the cost curve, says Horn. “We need to reduce reliance that the group has on the markets in India, and we also need to diversify our products. We only produce phosphate rock concentrate, phosphoric acid and also granular fertilizer (DAP & MAP) and we need to diversify that product range further down the value chain. That is the key objective.” Foskor Group President and CEO, M.A. Pitse sees greater clarity and market direction coming to the fore.” Although the direction that the Rand will take remains anybody’s guess, commodity prices seem to have bottomed out and are gaining momentum at the same time that demand is reviving. “As the after-effects of the financial crisis wear off and access to finance returns, farmers around the globe are growing their businesses. More seeds are being planted – spurred on by the demand for nutrients, food, feed and biofuel. I am upbeat about our prospects.” END
Uniquely S outh
Transforming the mundane into the extraordinary has been a winning business formula for Carrol Boyes.
carrol Boyes FEATURE
arrol Boyes is one of South Africa’s most prominent designers and manufacturers. Her imagination and mind knows no boundaries, but she has successfully reined some of her creative spirit to build what is today a successful international brand. Boyes started out in 1989 and wanted to use her sculpture and art training to earn a living. The former teacher started to make copper products for the home from her basement. It was a success from day one. “I began making verdigris candles which set off a market trend,” says Boyes. In 1991 she combined her artistic flair and talent in sculpture with her jewellery experience to create unique pewter handles for cutlery and the Carrol Boyes Functional Art range was born. International success in markets like the UK, Ireland, USA, Canada, Europe, Hong Kong, Singapore, Middle East, Australia, New Zealand, Africa and Scandinavia has since followed. Pewter, she recalls, was an excellent choice for her early sculptures, designed for every day use in the home. In addition to pewter, metals like aluminium and stainless steel are also used today. The Carrol Boyes range sells over a million items to homeware and gift stores, galleries and craft shops and the overseas market. “It was quite quick that we started expanding into other pewter items and looked at using cast aluminium - and people then started to ask for cutlery that could go into a dishwasher, so stainless steel became part of the agenda,” Boyes says. “It is sometimes unbelievable how quickly the business has grown.” Glass and ceramics are new additions.
I began making verdigris candles which set off a market trend
carrol Boyes FEATURE
UNIQUE RANGE The Carrol Boyes range consists of tableware, hollowware, kitchenware, bathroom, desk and office accessories, leather and furniture. All are made in metal, in combination with wood and leather. Each piece is individually handcrafted and therefore unique and charming. The business is perhaps best described as a gift company, specialising in items for weddings, birthdays, engagements and a range of unique events. “With our emphasis on functional art, we produce a variety of 94
It was quite quick that we started expanding into other pewter items and looked at using cast aluminium - and people then started to ask for cutlery that could go into a dishwasher, so stainless steel became part of the agenda
distinctive and uniquely South African items that are both useful and beautiful to own,” the Carrol Boyes website says. The Group has three distinct divisions. The manufacturing division is based at Letsitele, near Tzaneen, in the Limpopo Province – it is where the casting, stamping and pressing is done; a 14,000 square metre warehouse in Cape Town, where Carrol and her artistic team create the prototypes for the new designs, which also acts as a distribution hub and is home to the assembly
Developer and supplier of special food grade decorative coatings used on Carol Boyes functional art. Manufacturers of specialised coatings and lubricants. KAL-GARD
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of products; and the retail division, which runs dedicated stores across South Africa and internationally. “Our actual manufacturing site is located near Tzaneen in the Northern Province, South Africa where the casting and stamping of the metals is done and larger items are assembled prior to their transportation to Cape Town,” the company’s website confirms. “Carrol Boyes Functional Art has grown rapidly from its humble beginnings in 1989, and with its entry into the electronic field new customers are being attracted globally, and being enthused by our stylish and distinctive products.”
COMMITTED TO BETTERMENT As well as running this hugely successful business, Boyes is responsible for designing hundreds of new products every year, although a lot of time and effort has also gone into nurturing young talent so that they will eventually “take over the creative side.”
Essentially, the company endeavours to nurture new product designers working in metal, explains Boyes. The company has a design art competition, called Metal, which is open to any South African. The winners each year have the opportunity to have their product developed and to work within the company. Carrol Boyes employees around 600 people and training very important to Boyes, who taught for 11 years before founding her business, and it takes around three months to complete for those involved in casting, filing, grinding and fabrication processes. “Training is essential,” she acknowledges. “I am committed to the betterment and welfare of individuals in the community and workplace.” This is a remarkable story from a remarkable designer who wanted to “transformer the mundane into the extraordinary, making every day objects works of art”. Prepare to seduce your imagination! END
OFFER LOWER COSTS martin road going and mining trailers are designed and built for heavy duty applications and durability so as to increase production, decrease costs and increase manoeuvrability of tracked machines.
martin trailer company FEATURE
artin Trailer Company is a premium name in trailer manufacture. It is the quality of the product and power of the brand that has allowed it to thrive. It is true what they say. This Roodekopbased firm really can manufacture any type of trailer to suite clients’ exact requirements, says Marketing Director Kieron Gore. With one of the largest in-house design departments in the South African commercial trailer market, and together with its production facility and experience in manufacturing trailers, he says, the trailer manufacturer is able to offer “best designs, excellent workmanship as well as competitive pricing.” The company specialises in designing and manufacturing both on-highway as well as off-highway mining trailers, mainly to carry large indivisible loads such as excavators, dozers, drill rigs, large steel structures and transformers. In the past two years it has also established a new production line for supply of general cargo trailers such as tippers and flatbed trailers. “We are constantly growing into new markets, both with new products and new geographical markets so as to ensure future survival as well as company growth,” says Gore. “We have been a market leader in trailers for abnormal loads over the past 30 years and now we are working hard on export and offering general cargo trailers of which the dividends are now paying off. We do however know our bread and butter is the South African lowbed market and we will continue to offer new and exciting products here whilst maintaining all the factors that our customers require.”
Martin Trailer Company recently delivered a 250 tonne capacity lowbed trailer to the world’s largest platinum mine, he adds. “It’s a single-axle rear loading trailer and is unique in that the rear of the trailer hydraulically lowers and the axle and wheel stations hydraulically widen to expose a low loading angle for mining equipment to drive on to and be transported safely”. The trailer - weighing over 110 tonnes - has a pre-stressed deck, a unique selling point. “We originally developed this concept for our road going trailers and we are now implementing it in our mining trailers,” Gore says. “There are a number of benefits... It allows for higher loading capacities without adding more weight to the frames, for instance.” Designing trailers from scratch, Martin Trailer is able to ensure braking, frame strength and all operational requirements are met, he stresses. “I’m confident in saying that whatever the industry, we are able to offer leading design and workmanship, highest specification as well as cost effective equipment with a long product life.” Martin trailers are competitively priced for both the local and export market, even though its input costs are higher than competitors, Gore adds. “Because of the special steels, highest quality running gear and more hours that go into each unit to achieve our quality standard, we are still able to offer extremely competitive pricing on our equipment.” On standard lowbed production, he estimates Martin has a 50 percent market share locally and a 30 percent market share in other sub-saharan African countries. “In Africa, Martin mainly competes against very cheap imports form China and Brazil,” Gore explains. “It is hard to compete on price
There are a number of benefits... It allows for higher loading capacities without adding more weight to the frames
martin trailer company FEATURE
with these imports as they don’t have any overheads here so they are able to offer rock bottom pricing without supporting the product. We have approached the African market differently and market our trailers with a very high specification and a backup service and parts offering. This seems to be paying off with clients paying a bit more for our units but they have piece of mind and a better quality, more durable piece of equipment with higher resale value on the vehicle.
We are constantly growing into new markets, both with new products and new geographical markets so as to ensure future survival as well as company growth
“These units are also designed around local legislation and weight formulas so they further help the client by carrying higher payloads at a lower cost.” Mining trailers and general cargo flatbeds are experiencing huge growth, he adds. “We admit we have dropped the ball over the past 10 years on the mining trailers by concentrating on standard lowbed production and ended up offering the mines very long lead times. This however has changed. We have invested heavily in our R&D department with more engineers and
draftmens, setup up a separate production line for the mining trailers and build the units with the latest technology and loading capabilities. We now believe we can offer the highest specified units on the shortest lead time whilst pricing is very competitive to put the cherry on the top.”
A REMARKABLE STORY The story of Martin Trailer is truly remarkable, especially when you consider how things started. Indeed, from humble beginnings in 1984, with only 10 employees and some very loyal customers, the South African manufacturer has grown to be a market leader in heavy-duty commercial trailers and tow-behind compaction equipment in the African market. Today, the company manufactures lowbed, flatbed, Mining Trailer, side tippers and various other trailers with capacities from 20 tonnes to over 400 tonnes. It also manufactures the Martin Grid Roller and is a distributor of Cooper Chengshan truck tires and DAVIS MAGNET 5th wheels, as well as the Broons square impact roller. These products and services are supplied to the mining, transport, civil engineering, construction, plant hire, vehicle recovery, military and energy sectors as well as local and national governments, Gore says. “Our focus is on growing the African market but we are also expanding into the international market.” He adds: “We have all the right ingredients. We have a great product. We have fantastic staff and customers that support us. And we have the expertise.” With Martin Trailers being a family owned and controlled business – and it is very much the family affair, with Kieron’s brother Patrick as Managing Director and other brother Kevin head of Engineering. Frank Doherty, a long time family employee and family friend is also a director in the company and looks after production. In this way the company is able to
Always ahead SSAB is a leading producer of high strength and quenched & tempered steels, and has production plants in Sweden and the USA. SSAB steels are among the strongest in the world. This enables customers to make lighter, stronger and more durable products, which offers major environmental benefits to customers and the surrounding world. We develop solutions that improve the competitiveness of our customers. The SSAB product brand name portfolio includes numerous world leading and well established brand names. The SSAB product brand names are: Hardox – Wear plate for maximum payload and longer service life Domex – High strength structural steel for lighter vehicles Weldox – High strength structural steel for stronger, lighter structures Docol – High strength structural steel for lighter and safer solutions for the automotive industry Armox – Protection plate for personal safety Prelaq – Weather protection in a rainbow of colors Toolox – Pre-hardened tool steel for lower productions cost Sales – Ricardo de Villiers Area Sales Manager, SSAB EMEA Hardox®, Weldox® , Domex , Docol D +27 11 724 5036 M +27 82 770 8117 email@example.com
Technical – Nico van der Westhuizen Area Technical Manager SSAB EMEA D +27 11 724 5038 M +27 82 304 1162 firstname.lastname@example.org
offer superior service on all its products with a personal touch. “We have a hands on approach to dealing with clients,” says Gore. “It gives us an edge.” The main factors that have made Martin one of the most well known and sought after brands within the lowbed and heavy duty trailer industry are innovation and durability, quality, experience and best specification, he adds. “We have a full inhouse design team consisting of engineers, draftsmen, and trailer builders, and using the latest design and manufacturing techniques, the company is able to constantly improve and innovate. “This innovation and design has resulted in many firsts within the industry, including the first hydraulic removable gooseneck lowbeds, the first hydraulic widening trailers as well as the first mining trailer in the world to make use of a single axle configuration.” END
Finally a car has come along that is uncompromising, uninhibited and unbelievable. From its design, to its drive, the bold and sexy new FordFiesta is the car for now. Available in the trendiest urban colours, 1.4 and 1.6 petrol engines and the economical and powerful 1.6 TDCi. New FordFiesta. This is now. www.newfordďŹ esta.co.za
Published on Jan 3, 2011