BE Magazine Issue 1467 by Business Excellence Magazine

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ISSUE 1467

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At the heart of Portugalâ&#x20AC;&#x2122;s modern maritime industry Portugal has a proud maritime history. In 1494, the country signed a treaty with Spain, brokered by the Vatican, to share the global navigation routes between the two countries.

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THE TEAM RESEARCH Fernando Ruiz f.ruiz@bus-ex.com Eurides Lopes e.lopes@bus-ex.com Maria Cobano m.cobano@bus-ex.com

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CONTENTS

COVER STORY

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BE [ ISSUE 1467 ] 16

Quito Metro

Brussels Airport

Bringing the world’s highest capital underground The city’s government created a masterplan for a metro to overcome the geographical and geological nature of the city.

A Flight to the Future of Europe We recently visited Brussels Airport to find out about the new directions the airport is taking, particularly in the areas of sustainability and integrating with other modes of transport in and around the city

Mercadona

Retail Excellence on the Iberian Coast Anyone that has ever gone grocery shopping in Spain will know that it’s a food lover’s paradise.

Bank of the Americas Two of the largest trends witnessed in the global banking industry over the past 25 years have been the consolidation of national banking industries.

ANE

The TCIAA

Medellín Metro

An Icon of the Aburrá Valley Medellin, Colombia’s second city, has a lot to be proud of. As recently as 2013, the Urban Land Institute chose it as the world’s most innovative city.

Scotiabank Peru

Marking the Road Ahead for Mozambique The The National Road Administration (ANE, from the Portuguese Administração Nacional de Estradas) is responsible for developing the country’s road network, a crucial element of any country’s long-term strategy for tourism, trading and more.

Giving Wings to the Turks and Caicos Islands The Turks and Caicos Islands are a Caribbean archipelago perhaps more traditionally accustomed to receiving cruise ships than airplanes.

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AT THE HEART OF PORTUGALâ&#x20AC;&#x2122;S MODERN MARITIME INDUSTRY ADPL Portugal has a proud maritime history. In 1494, the country signed a treaty with Spain, brokered by the Vatican, to share the global navigation routes between the two countries. RESEARCH BY

Eurides Lopes

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ortugal has a proud maritime history. In 1494, the country signed a treaty with Spain, brokered by the Vatican, to share the global navigation routes between the two countries. Under this agreement, Portugal dominated those routes. In 1498, it discovered a previously unknown route to India (around the southern coast of Africa). In 1500, a Portuguese fleet commanded by Pedro Álvares Cabral, was the first documented fleet to land in Brazil. Today, although the age of discovery has long since passed, maritime trade thrives in Portugal. That is partly down to companies of

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the like of APDL (Portuguese: Administração dos Portos do Douro, Leixões e Viana do Castelo, S.A.), which manages the largest port in Northern Portugal - Leixões. Located just 10 kilometres outside the UNESCO world heritage city, Porto, Leixões plays a significant role in Europe’s trade, being on the continent’s Atlantic seaboard. In 2018, 19.1 million tonnes of cargo was loaded and unloaded in the docks of Leixões, just shy of the port’s record of 19.5 million tonnes set the year before. Located next to Portugal’s industrial heartland, APDL’s assets, which also include the ports of Viana de Castelo and Douro,

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“In 2018, 19.1 million tonnes of cargo was loaded and unloaded in the docks of Leixões, just shy of the port’s record of 19.5 million tonnes set the year before”

and the Douro gateway, play a pivotal role in the Portuguese economy. Business Excellence recently sat down with Prof. Guilhermina Rego, Chairman of the board at APDL to learn more about the company at the heart of Portugal’s modern maritime industry.

From shelter to port to tourism provider The strategic location of Leixões on the bank of the Atlantic has historically made it a trusted shelter for boats navigating the Atlantic, but it wasn’t until the second half of the 19th century that a structured port began

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BUILDING THE FUTURE These last years, GABRIEL COUTO was awarded and therefore completed two major works promoted by APDL (Administration of the Ports of Douro, Leixões and Viana do Castelo). These works were the “General Earthworks, Hydraulic and Electric Infrastructures, Pavement and Entrance of the no. 1 Centre of Leixões Logistic Platform and the Construction of the new unit of the Logistics company Luís Simões in Center no. 2. The first work had an intervention area of approximately 30 hectares and will definitely be an asset in terms of boosting the development of the logistic and industrial activity associated to the operation of the Port of Leixões and the Francisco Sá Carneiro airport. The second work was a new industrial facility executed to increase the activity of the Luís Simões company in Center 2. We are very proud of these two projects that emphasize the confidence that APDL has in our company.

T: +351 252 308 640 E: cgasc@gabrielcouto.pt www.gabrielcouto.pt

In 2018, Gabriel Couto celebrated 70 years of activity. It is one of the oldest construction companies in the Country operating in the sector of road, rail, port and airport infrastructures. Likewise, its activity extends to all kinds of hydraulic infrastructures. In the building sector, one must highlight the public and private residential, commercial, industrial, school and hospital construction. These past years, the company has developed significant operations in the field of renewable energies, in particular in wind energy, being that it is still currently responsible for some operations as it carried out Civil Engineering works – foundations, accessibility and infrastructures – in about 30% of the Country’s installed power. Gabriel Couto has extended its activity beyond Portugal, being currently present in Africa – Angola, Mozambique and Zambia – and in Central America – Honduras and Nicaragua. In these two continents, it has been executing important enterprises funded by major multilateral institutions – European Union, World Bank, African Development Bank, Central American Bank for Economic Integration and Millennium Challenge (American Sovereign Wealth Fund), among others.

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to arise, primarily to cater to Portugal’s wine industry, the families of which nearly all live in the nearby city of Porto. However, as is often the case, the project suffered a series of delays, and it wasn’t until 1914 that a port still a relatively humble one due to budgetary constraints - was developed. This was the genesis of what is now dock at at Leixões. This was further developed to the extent that, by 1940, it was 550 metres long and had two berths totalling 1,000 metres. From there, a phase of extraordinary growth began, which goes some way to explaining how today, it is what Ms. Rego calls: “the second largest port in Portugal in tonnes handled and the largest gateway port in containerized cargo.” In addition, she says, it is “one of the most competitive and versatile multi-purpose ports in the country.”

GABRIEL COUTO These last years, GABRIEL COUTO was awarded and therefore completed two major works promoted by APDL (Administration of the Ports of Douro, Leixões and Viana do Castelo). These works were the “General Earthworks, Hydraulic and Electric Infrastructures, Pavement and Entrance of the no. 1 Centre of Leixões Logistic Platform and the Construction of the new unit of the Logistics company Luís Simões in Center no. 2. The first work had an intervention area of approximately 30 hectares and will definitely be an asset in terms of boosting the development of the logistic and industrial activity associated to the operation of the Port of Leixões and the Francisco Sá Carneiro airport. The second work was a new industrial facility executed to increase the activity of the Luís Simões company in Center 2. We are very proud of these two projects that emphasize the confidence that APDL has in our company. In 2018, Gabriel Couto celebrated 70 years of activity. It is one of the oldest construction companies in the Country operating in the sector

of road, rail, port and airport infrastructures. Likewise, its activity extends to all kinds of hydraulic infrastructures. In the building sector, one must highlight the public and private residential, commercial, industrial, school and hospital construction. These past years, the company has developed significant operations in the field of renewable energies, in particular in wind energy, being that it is still currently responsible for some operations as it carried out Civil Engineering works – foundations, accessibility and infrastructures – in about 30% of the Country’s installed power. Gabriel Couto has extended its activity beyond Portugal, being currently present in Africa – Angola, Mozambique and Zambia – and in Central America – Honduras and Nicaragua. In these two continents, it has been executing important enterprises funded by major multilateral institutions – European Union, World Bank, African Development Bank, Central American Bank for Economic Integration and Millennium Challenge (American Sovereign Wealth Fund), among others. www.gabrielcouto.pt

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All of that isn’t to overlook the remaining assets in the APDL portfolio. Of these, Ms. Rego points out: “The Port of Viana do Castelo has installed capacity and conditions to meet the current demand. The construction of the new road access is already under way, which will improve accessibility to port infrastructure, strengthen its competitiveness and widen its hinterland.” She continues: “Our inland waterway of Douro, which runs from Barca de Alva to Porto, is increasingly a sustainable alternative to freight transport. A true river freeway, in which cargo and tourist vessels navigate

side by side.” This reflects a much wider change in Portugal over the past century: What was once a truly industrial river, with boats transporting port in barrels from the Douro Valley is now home to a burgeoning tourism industry. Tourism is booming in the north of Portugal in general. Ms. Rego says: “The opening of the new Cruise Pier in 2011 and the Cruise Terminal in 2015 opened opportunities for growth in the port and the region as a Tourist Destination. Porto’s tourism potential along with the other Atlantic maritime-port cities favors the

“Our inland waterway of Douro, which runs from Barca de Alva to Porto, is increasingly a sustainable alternative to freight transport”

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development of a diversified and differentiated product in relation to the offer of other destinations and regions.” She continues: “Another key factor for Leixões is its proximity to Francisco Sá Carneiro International Airport with direct connections to various European destinations, the US and Brazil, and the hotel capacity available at Porto, which allows the Porto Cruise Terminal to be selected as a port of turnaround, that is, the start and end port of cruise voyages.”

form the company’s strategic development plan, of which Ms. Rego says: “Earlier this year, the port authority (APDL) Earlier this year, launched the public tender the port authority for the extension of the outer (APDL) launched breakwater and maritime the public tender accessibilities of the Port of for the extension Leixões. The contract has a of the outer value of €141m and a lead time of breakwater 30 months.” and maritime She continues: “With this accessibilities of project, the port authority the Port of Leixões. will improve safety conditions The contract has and navigability in the access a value of €141m to the port as well as in the and a lead time of manoeuvring zone for ships. It 30 months will also create conditions for Strategic access of larger cargo vessels, Development Plan namely those in the 300 m APDL has initiated a number of long, 40 m beam and 13.7 m draught class. steps which will ensure that the company’s The improved accessibility to Leixões will operations continue to develop as they enable another important project to create have done over the past period. These

Did you know?

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“Exporting to 184 countries is only possible due to the wide network of more than 50 shipping companies” a new terminal in the South Mole of the port, with a private investment of €70m, featuring depths of 14.8 m and a 360 m berth on a 16-ha embankment.” In addition to this, she says: “The South Container Terminal is being refurbished and by March 2021, it will have its capacity increased by 210,000 teu per year following a €43.4m investment by Yilport. Hence, terminal capacity will rise to 660,000 TEU and overall port capacity will hit 800,000 TEU. Capacity expansion will be achieved through the expansion of the full container yard and handling platform, enhancements in the terminal layout, and improvement of container handling equipment. The work is essential for the Port of Leixões and for the market it serves.”

Sustainability APDL works actively to improve the sustainability of its activities. In its annual sustainability report, it outlines a series of measurable milestones that it intends to achieve by 2030. Ms. Rego says: “The Port of Leixões has been guiding itself by the principle of mitigating environmental impacts resulting from the port activity. We implemented systems to manage and oversee environmental impacts such as noise, air quality and waste collection. We also have been successfully promoting the reduction of water and energy consumption.”

Partners As with all of the best port operators, APDL works with a range of industry players, each bringing their own expertise to the task at hand. To illustrate this, Ms. Rego says: “The

Container Terminal, granted to Yilport Leixões, that handles almost 700 thousand TEU’s per year; the Break-bulk and Solid Bulk Terminal, granted to TCGL – Terminal de Carga Geral e Granéis de Leixões, that handles 2,6 million tonnes of Solid Bulk and 1,1 million tons of Break-bulk per year. Finally, the Oil Terminal, granted to Galp Energia handles around 8 million tons per year.”

Conclusion It’s clear from speaking with Ms. Rego that APDL sees it role as a facilitator of tourism as much as traditional logistics. Being located so closely to Porto, APDL has a symbiotic relationship with the city and its requirements. Ms. Rego tells us: “Leixões serves the most important industrialized area in Portugal, where 70% of the Portuguese small and medium size companies are located. We are an export ports par excellence and we are able to serve an hinterland of 14 million inhabitants,.” She concludes: “Exporting to 184 countries is only possible due to the wide network of more than 50 shipping companies that provide daily and weekly regular services to the nearby hub ports. Therefore, we have the clear ambition of maintaining our current high standards of service and continuing to be the port of reference. APDL

 +351 22 999 07 00  info@apdl.pt www.apdl.pt

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BRINGING THE WORLD’S HIGHEST CAPITAL UNDERGROUND Quito Metro The city’s government created a masterplan for a metro to overcome the geographical and geological nature of the city RESEARCH BY

Eurides Lopes

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rchaeologists have shown that Ecuador’s capital Quito has a history which extends back over 5,000 years, making it one of the oldest cities in the world. This is at least in part due to the city’s famous geography: at an altitude of 2,850 metres above sea level, defenders of the city were able to see enemies coming a few hours in advance. These days, it just means the views are spectacular. The city has also maintained its stunning old town, complete with its architectural treasures of colonial and republican times, even as it grew to the north and south. This growth, the result of the city’s population reaching an estimated 1.35 million people, was one was of the reasons that the city’s government created a masterplan for a metro to overcome the geographical and geological nature of the city. The responsibility for delivering the project fell to the Metro Alliance Consortium, which is composed of two separate construction firms: Ayesa (Spain) and ILF (Saudi Arabia). Its General Manager, Edison Yánez Romero was kind enough to take time out to speak with Business Excellence about the complexities of the project, its importance and the extent of its progress.

Background Information Mr. Yánez Romero began by informing us that the decision for a metro, rather than an over ground transportation system, was one borne out of practical considerations for the city: “Metro Quito was born from this need of

“The responsibility for delivering the project fell to the Metro Alliance Consortium”

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QUITO METRO

“At a cost of around US$2 billion, Metro Quito may prove to be one of the most astute investments from a socioeconomic perspective that Business Excellence has ever covered” the city to solve one of its deepest problems, that of mobility in the city. More than 400 thousand passengers per day and more than 1 million will be transported in the integrated public transport system.” Unlike many other metro systems, Metro Quito will be exclusively underground. Mr Yánez Romero says: “The layout of the first line of the metro includes a route of 22 km, completely underground, with stations located between 1000 and 1800 meters, one from the other, while the tunnel will have a depth of 15 and 26 meters. It consists of 15 stations on a single line, plus the workshops and carports area, served by an initial fleet of 18 trains.”

Socioeconomic Impact At a cost of around US$2 billion, Metro Quito may prove to be one of the most astute investments from a socioeconomic perspective that Business Excellence has ever covered. Mr Yánez Romero estimates that around 20,000 people, composed of 5,000 direct jobs and about 15,000 indirect jobs, were employed during the construction phase alone (over 1% of the city effectively working on a single project). Elsewhere, he also cites the high-level impacts that the project will have on Quito

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once delivered: “The metro will enhance the socioeconomic inclusion of peripheral areas, develop a new culture for the city’s residents and a positive attitude towards quality public services and generate a remarkable improvement in the quality of life of Quito.” This includes the new business dynamics around the 15 “metro zones,” energizing their microeconomies. Mr Yánez Romero is also keen to underline that, over the course of the project, more than 1,000 social initiatives have been carried out,

including the community (schoolchildren, neighbours, underprivileged communities, etc.) benefitting more than 80,000 people in total. In addition, Consortium engineers have transmitted technical knowledge of the Metro Quito to more than 500 assistants in universities and educational centres.

Respect for its Environment Metro Quito will run entirely on electrical energy, providing a significant boost to the on-street environment in the process. Of

“Metro Quito has amply demonstrated its commitment to care for the environment, ensuring compliance with current environmental regulations”

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QUITO METRO

this, Mr Yánez Romero says: Project, which have included: Did you know? “managing more than 6 million “Yes, Metro Quito has amply kilograms of recyclable waste demonstrated its commitment and reusing more than 100 to care for the environment, More than 1,000 thousand cubic meters of water, ensuring compliance with current social initiatives protection measures for more environmental regulations, and have been carried than 236 specimen of heritage the optimal management of out, including trees, and continuous monitoring resources through its Consortium the community of environmental indicators such Line 1 contractor.” (schoolchildren, as air, water and soil.” Additionally, it will ensure neighbours, compliance with international underprivileged St rateg ic Pa r t ne r s, environmental standards of communities, Suppliers and Contributors Multilateral Financing Banks of etc.) benefitting The major strategic partner for the project (World Bank, Intermore than 80,000 the project has been Spanish firm, American Development Bank, people in total Acciona, which has worked with CAF- Development Bank of the consortium to deliver Line 1 of Latin America and the European Metro Quito. Of them, Mr. Yánez Investment Bank) through Romero says: “they hired more than 5,800 internal management and inter-institutional workers, 95% of Ecuadorian origin. Currently, coordination with the other municipal and work continues on the implementation of state entities. social initiatives for employees in favour of Mr. Yánez Romero states some of the their training and awareness of construction, environmental KPIs set by the Metro Quito

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QUITO METRO

equity, occupational safety, sustainability and gender focus.” Other suppliers cited by Mr. Yánez Romero are well-known industry players such as CAF Siemens, Bombardier and Thyssenkrupp. Local suppliers have also played a pivotal role. He says: “I would even say local suppliers have exceeded expectations in many areas. For example, HOLCIM, the local cement supplier, who provided mass dispatches, with demands on time, design and safety, with more than 5,000m3 in a single office achieving efficiencies of 120m3 / hour and all previous planning, as well as personal trained and involved in the whole process.”

Strategic Partners, Suppliers and Contributors When asked for what will make Metro Quito so special, Mr. Yánez Romero is effusive: “the significant saving of personal time and improvement in the productivity of the

city, national savings thanks to reduced fuel imports, less environmental pollution, safer streets because of less transport, urban development around the project, empowerment of the historic centre, and more.” The great news for Quito and its residents is that the metro is nearing completion. Mr. Yánez Romero says: “At the moment it reaches an 86% progress in the construction phase, where architectural finishes are completed and the electromechanical, electronic, lighting and railway signalling facilities are developed.” Upon completion, Metro Quito will not only be the world’s highest metro, it will also be one of the highest in terms of standards. QUITO METRO

 info@metrodequito.gob.ec www.metrodequito.gob.ec

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Brussels

A FLIGHT TO THE F

We recently visited Brussels Airport to find out about the areas of sustainability and integrating with ot RESEARCH BY

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s Airport

FUTURE OF EUROPE

e new directions the airport is taking, particularly in the ther modes of transport in and around the city

oseph Philips BUSINESS EXCELLENCE [ ISSUE 1467 ]

ew cities are European in the way that Brussels, the multilingual capital city of Belgium, is. This is reflected by the fact that, as the administrative capital of the EU, it is also known as ‘the capital city of the EU.’ This is where nearly all the important EU-level decisions are made on an ongoing basis - the beating heart of the European project. In this context, Brussels Airport acts as a nexus for all of Europe. When passing through its terminal, it’s not unusual to bump into well known senior European politicians coming to and from the city. However, they’re not the only ones: in 2018, over 25 million passengers passed through

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the airport, from a total of 238 destinations, shuttled by nearly 80 airlines. We recently by Brussels Airport to find out about the new directions the airport is taking, particularly in the areas of sustainability and integrating with other modes of transport in and around the city. We started by learning about the social and economic impact that it has on Belgium at large.

Social and Economic Impact One of the standout statistics about Brussels Airport is that it contributes almost 2% to Belgium’s GDP every year, and has an estimated added value of around €3.2 billion to the

BRUSSELS AIRPORT

“One of the standout statistics about Brussels Airport is that it contributes almost 2% to Belgium’s GDP every year, and has an estimated added value of around €3.2 billion to the country’s economy.”

country’s economy. In terms of employment, it directly employs 24,000 people, but that figure jumps to 60,000 people when indirect employment is accounted for. Brussels Airport closely works together with regional public employment agencies including VDAB (Flanders), Actiris (Brussels) and Forem (Wallonia) to bring together employers at the airport and jobseekers, and promotes an improved accessibility of the airport by public transport to make sure that they arrive at work. Making sure that thousands of jobs can be created at Brussels Airport in the coming years and continuing to connect Belgium to the rest of the world is our everyday challenge. In doing

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EXPERTS IN WINTER OPERATIONS • De-icing Services • Aircraft Servicing • Airside Assistance T: +32 477 35 20 66 E: operations@aeroservices.be aeroservices.be

BRUSSELS AIRPORT

AEROSERVICES Aeroservices, an aviation handling company started its operations at Brussels Airport during the winter of 2017-2018. As an expert in winter operations, particularly de-icing, we are making a difference at Brussels Airport. As a flexible and highly qualified handler, we provide support to airlines and active ground handlers for all aviation services. External cleanings, lavatory & potable water services are some of the services that we offer today. Our approach at Brussels Airport came after several airlines informed us about some “present” bottlenecks. We are proud of our team and the goals we have already achieved and will continue to invest in training as well as up-to-date equipment so that we will always make the difference at Brussels Airport. Our brand new Safeaero de-icing trucks as well as towbarless Douglas trucks can only confirm the above mentioned statement. www.aeroservices.be

so, the airport strives to achieve the optimal balance between economic growth and the impact on the environment in a stable legal and regulatory framework. One of the ways in which the airport has a daily impact on the social fabric of the city is by being an intermodal transport hub. That is - unlike most cities - the airport in Brussels is the centre of the action rather than a bus journey into a neighbouring commuter city. Many people already travel by public transport to the airport now, not to catch a plane, but to easily change to another means of transport. They’re using Brussels Airport as a junction where they change to another means of transport on their way to work, school or any other destination. Management at the airport wants to develop this role even more in the future, so we can contribute towards solving the mobility problems in our region.

Building on its role as a mobility hub Recognizing its role as a mobility hub, the management at Brussels Airport have set out to improve on that for the citizens of Brussels. They envision a future with more train services,

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Reliable partner for value-added logistic process automation

Vanderlande is the global market leader for value-added logistic process automation at airports. Its systems are active in 600 airports including 14 of the world’s top 20. Vanderlande’s extensive portfolio of integrated solutions – innovative systems, intelligent software and life-cycle services – results in the realisation of fast, reliable and efficient automation technology. > vanderlande.com

VANDERLANDE, SETTING THE DIRECTION FOR A LONG-TERM PARTNERSHIP Since 2019, Vanderlande is working on upgrading the baggage handling system at Brussels Airport. Previously Vanderlande was involved in the implementation of our PAX checkpoint solutions, enabling a secure, seamless, rapid and positive traveling experience for all passengers. Brussels Airport Company is rolling out a large-scale investment programme, including the replacement of the conventional baggage handling system with Vanderlande’s innovative ICS technology. New hold baggage screening machines will be integrated to comply with the latest EU standard 3 regulations. The foreseen operational improvements will allow the airport to handle an expected growth in annual passenger numbers from 25 to 40 million within the next 20 years. Vanderlande is cooperating closely with ENGIE Fabricom, a key supplier in respect to BHS-

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related activities at Brussels Airport. Integration of the new system will be executed during live operations, without impact on the passenger experience. This requires a high level of ‘brownfield’ experience in terms of both hardware and software. With this in mind, the strengths of Vanderlande and ENGIE Fabricom have been combined to create synergy and implement the best overall innovative and sustainable solutions to support Brussels Airport in achieving its longterm strategic vison 2040. And become Europe’s best airport by 2040. www.vanderlande.com

BRUSSELS AIRPORT

24/7 bus services, an airport shuttle, tram connections, connections with local cycle paths and new access roads. This vision led them to set an ambitious target that by the year 2040, 50% of the passengers and the airport employees will come by public transport, bicycle or on foot, as compared with the current 30%. That will help to reduce traffic congestion in the region as a whole. Airport management is working with the government and with the transport companies to give substance to this plan. The next few years will also see the introduction of an automated airport shuttle. The self-driving people mover has already clocked up its first few metres at Brussels

Airport. In the month of November 2019, the shuttle performed several demo trips without passengers to test the technology in a real-life environment. In 2021, it will be fully ready.

Developing Transport means Developing Sustainability The increasing role of Brussels Airport as a mobility hub for the city means that it needs to get sustainability right. The good news is that it does, and it continues to improve. As recently as March 2019, the airport put in place a fleet of electric buses, dramatically reducing carbon emissions for journeys to and from the airport’s terminal. They represent just a small step that the airport will make to reach its target of 40%

“The next few years will also see the introduction of an automated airport shuttle”

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ENGIE ENGIE, through its subsidiaries active in Belgium, has been a long term partner of Brussels Airport since 1989. More than 200 colleagues are present at Brussels Airport on a daily basis, putting all their energy in increasing the safety and comfort of the passengers. Our competencies range from technical installations in airport buildings to passenger safety. Our know-how enables us to implement multi-technical airport projects, including design, development, installation and maintenance. engie-fabricom.com engie-cofely.be engie-axima.be

Partner of the zero carbon transition

engie-fabricom.com / engie-cofely.be / engie-axima.be

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BRUSSELS AIRPORT

carbon reduction (from 2010 output) by 2030. Sustainability is one of the most important values of Brussels Airport Company. One of the key aspects of sustainability within Brussels Airport Company is care for the environment, the surrounding area and energy consumption. Its environmental and energy policy fits in with the mission and vision of the company. The airport’s environmental policy looks at a broad spectrum of environmental sustainability: Energy and CO2 reduction, waste reduction and disposal, water use limitations and treatment, soil maintenance and noise control. These goals, in turn, drive the operations at the airport, and every time a management decision is made, the environmental criteria must underpin it.

For example, all new buildings at Brussels Airport are designed setting out from particularly strict sustainability criteria. The energy consumption of the future fire stations for instance will be virtually zero, by resorting to solar panels, solar water heaters and heat pumps. Elsewhere, a study into the biodiversity at the Brussels Airport site is to be conducted in association with non-profit organisation Natuurpunt, in order to better identify how to safeguard or even improve this biodiversity. Brussels Airport is also signing up to the Flemish Government’s Circular Procurement Green Deal. This implies that, over the coming two years, the airport operator undertakes – where possible – to procure high-quality raw materials, equipment or products that can

“One of the key aspects of sustainability within Brussels Airport Company is care for the environment, the surrounding area and energy consumption. ”

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Letâ&#x20AC;&#x2122;s sort together for better recycling

Fost Plus and Brussels Airport are heading for excellent sorting and maximum circularity.

FOST PLUS, THE ENGINE OF THE CIRCULAR PACKAGING ECONOMY The non-profit organisation Fost Plus supports the promotion, coordination and financing of selective collection, sorting and recycling of household packaging waste in Belgium. Brussels Airport and Fost Plus are working together to prevent waste and improve waste sorting and recycling. To this end, several airport partners have signed the Brussels Airport Waste Charter in which they explicitly choose to apply the principles of circular economy. Together, they commit to reducing waste at the airport. They are also aiming to recycle at least 50% of the waste at the airport - including passenger waste - by 2030, which is double the current recycling rate. All signatory airport partners also undertake to make their staff and passengers aware of how

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to properly sort waste, with a specific attention that is put on the recovery of plastic bottles and cans. Fost Plus, in collaboration with Brussels Airport Company, is also conducting an audit at each signatory airport partner to map the current waste sorting organisation. Each company will receive a tailored action plan to achieve the objectives of the Brussels Airport Waste Charter. www.fostplus.be

BRUSSELS AIRPORT

“The increasing role of Brussels Airport as a mobility hub for the city means that it needs to get sustainability right” be recycled after use. Brussels Airport has invested heavily in renewable materials and energy in recent years.

Partners and Suppliers Transporting 25 million passengers every year would be an impossible task without the assistance of the finest partner companies in the aviation industry. These include Vanderlande - the global market leader for value-added logistic process automation at airports and in the parcel market. It has also been invaluable in allowing the Brussels airport to implement its logistics strategy. Vanderlande is backed up by Fost Plus, which contributes to a more sustainable waste management at the airport facility. Other services within the airport are carried out by Aeroservices sprl, Mobility Masters (which

helped with the delivery of the recently-arrived electric buses) and Swissport Belgium N. V. The responsibility for the huge volumes of fuel required by the airport’s visiting aircraft has been delegated to Skytanking Holding GmbH and Brussels Airfuels Services. Finally, the airport also maintains close relations with Textron Sweden AB - a developer of state-of-the-art aviation technology - and Engie Fabricom NV. The latter is an engineering and consulting firm which has been central to the airport’s delivery of a renovated runway in 2020 to cater for its ongoing passenger growth.

Onward and Upward Change continues apace at Brussels Airport. In 2019, it opened a new logistics building at BruCargo, its logistics platform. This is a crucial addition for the import and export of goods to and

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BRUSSELS AIRPORT

“In 2020, the airport will deliver a renovated runway - the first renovations which have been made on the runway since 1996.” from Belgium. BruCargo, already has more than one hundred different countries operating on its logistics chain, making it an important logistics hub for international trade and air transport in Europe. In 2020, the airport will deliver a renovated runway - the first renovations which have been made on the runway since 1996. This renovation has involved replacing the entire surface (which has an area of 3.3 kilometres in length by 45 metres in width). Its arrival will allow the runway’s life to be extended for a further 15 years, guaranteeing the best possible landing and takeoff standards for aircraft. Finally, the airport’s Vision 2040 envisions doubling the number of airport-related jobs in the next two decades. The plan is supported by a long-term development plan by Belgium as a whole and underlines the airport’s role as a growth hub for the country. It will deliver more destinations for its passengers and more import and export opportunities for business. The capital of Europe, it seems, has an airport worthy of its name. BRUSSELS AIRPORT

 info@brusselsairport.be @brusselsairport www.brusselsairport.be

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RETAIL

EXCELLENCE ON THE

IBERIAN COAST Mercadona Anyone that has ever gone grocery shopping in Spain will know that it’s a food lover’s paradise. RESEARCH BY

Fernando Ruiz

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First Mercadona’s supermarket in Portugal, Canidelo

nyone that has ever gone grocery shopping in Spain will know that it’s a food lover’s paradise. Everywhere you turn, there’s something to make the mouth water – the freshest fruit and vegetables, artisan breads, serrano ham, a Rioja red wine. Mercadona, the Spanish food retailer formed founded over 40 years ago, is one such culinary experience. Mercadona now finds itself at an interesting period in its history: it opened its first stores in neighbouring Portugal in July

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2019 and plans to have 10 stores by the end of the year. Could this mark the beginning of a wider internationalization for Spain’s favourite retailer? We were able to catch up with Mercadona Director of Communications, Mr. Toni Martinez and learn more about the company and what underpins its phenomenal growth.

History In 2019, an estimated 5.3 million families pass through the doors of Mercadona every

MERCADONA

“Mercadona decided to implant its SPB business strategy, moving from offers to Always Low Prices”

day, but as recently as the 1970s, it was just a small provincial chain. As Mr, Martinez explains: “Mercadona’s activity started within the Cárnicas Roig group in 1977, through the marriage between Francisco Roig Ballester and Trinidad Alfonso Mocholí, the parents of the current company president, Juan Roig.” The next generation of the family that took over in 1981, which included Mr. Roig, his wife and siblings, effectively formed the management team which gave the company a springboard for growth over the years

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that followed. In 1990, Juan Roig and his wife acquired shares from his sisters, to take control of 80% of the business in time and begin what Mr, Martinez calls “the disruptive model employed by Mercadona.” Mr, Martinez says: “Mercadona decided to implant its SPB business strategy, moving from offers to Always Low Prices. That was how it evolved from using a Traditional Management Model to the Total Quality Model. This disruptive cultural change is completed with the decision to move from the traditional Distributor Model to Totaler, which puts customers at the forefront of the company’s decisions.”

One of the highlights of this plan was to refer to the customer as ‘the boss.’ Reflecting the company’s attitude to every single person that walks through the door of a Mercadona store. This commitment to its “bosses” led Mercadona to 1,636 supermarkets at the end of 2018, 87,000 employees and 15.3% market share of the organized distribution sector in Spain.

87,000 customer-centric employees It’s a management cliché to say that a company’s people are its strength, but Mercadona proves the dictum. Mr,

“This commitment led Mercadona to 1,636 supermarkets at the end of 2018, 87,000 employees and 15.3% market share of the organized distribution sector in Spain”

Francisco, ham slicer in the Santo Ángel supermarket in Murcia

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MERCADONA

Almudena, ‘Boss’ of the supermarket on calle Ayala in Madrid, in the bakery section

Martinez says: “The pillar This is backed up by statistics Did you know? such as €70 million – an average on which the relationship of €815 per person - spent on model of Mercadona with its training in 2018, 860 people employees is based rests on The pillar on which moving up the career ladder the notion of who keeps “The the relationship through promotion in the Boss” (customer) happy and model of company and near gender parity must also be looked after. Mercadona with (47% women) in management Stability, training, promotion, its employees is positions. The company also equal opportunities or the based rests on p rov i d e s b e s t- i n - m a r ket opportunity to reconcile family the notion of who maternity leave, educational and work life are part of the keeps “The Boss” centres for its employees children company’s corporate culture.” (customer) happy and share options programs to He continues: “Therefore, and must also be improve employee morale. all company employees have looked after a stable and quality job since Innovation 1999, the year when the process of making all staff members through collaboration It’s easy to think of modern online retailers as permanent (which began in 1995) was the future of retail but much of the innovation completed. On the other hand, the salaries in retail is coming from firms like Mercadona offered by the company are above the – companies with a history in retail that industry average; and since 1997, the principle allows them to understand customers based of equity of “equal responsibility, equal pay” on face-to-face interaction rather than just is applied transversally.”

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anonymous online transactions. It has 19 co-innovation centres in which more than 100 specialists held 9,000 sessions last year, for example. Mr, Martinez says: “our Innovation Model is based on four concepts: innovations are developed only if they add value for “the boss”; product innovation: in 2018, the company launched 300 new products with an 82% success rate; process innovation: improvements in manufacturing processes, logistics systems and stock management; and finally, technological innovation.” This culture creates opportunity in the burgeoning e-commerce sector for Mercadona. Mr, Martinez says: “We have a new online store. A mobile application, two online Hive warehouses (located in Valencia and Barcelona), and vehicles with 3 different temperatures to make deliveries. This has meant a great mental change and we’re really happy with the evolution of Mercadona Online.”

Supermarkets becoming Super Sustainable

Totaler Supplier Girona Fruits SCCL harvesting Fuji Apples in Bordils, Girona

As one might expect from a company that looks after its customers and employees as well as Mercadona, it has implemented a broad range of CSR and sustainability initiatives which it continues to expand on. Mr, Martinez tells us: “At Mercadona, we are convinced that the best way to contribute to the development of society is to share the wealth we generate. For this purpose, we deploy numerous initiatives in logistics optimization, energy savings, waste management and animal welfare and sustainable fishing.”

“At Mercadona, we are convinced that the best way to contribute to the development of society is to share the wealth we generate” 44

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MERCADONA

New Mercadona plastic bag recycled up to 50-70%�

“The New Efficient Store Model saves up to 40% of energy compared to a conventional store”

In logistics optimization, Mr, Martinez says: “In 2017, Mercadona began to incorporate into its fleet lorries powered by liquefied gas that emit 40% less per litre of fuel and reduce particle emission 10 times. At the end of 2018, the company had 54 lorries powered by liquefied natural gas and the number is expected to increase considerably in the coming years.” Electric vans and diesel hybrids are also the norm for home deliveries, reducing the company’s carbon footprint.

He continues: “The New Efficient Store Model saves up to 40% of energy compared to a conventional store and Mercadona has a monitoring system that measures electricity and water consumption in real time. With this information, the company can adjust store processes and make better use of resources.” And of course, it contributes to better waste management, where for years, company has been committed for years to the circular economy amongst its suppliers.

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Did you know?

Luis, employee of the Totaler supplier Escurís in the bateas de Riveira, A Coruña

Mercadona also collaborates with dozens of food banks and charity canteens around Spain, to which it donated 8,300 tons of food in 2018. Its collaboration also extends to 33 fo u n d ati o n s and tra in in g ce ntre s , which provide the original trencadís murals that decorate the fishmonger and butchery sections of its supermarkets.

“The Total Quality Management (TQM) system which has been implemented at Mercadona clearly pervades every part of the organization” In April 2019, the company completed the phasing out of single-use plastic bags in all its stores, offering three options to customers to carry their purchase: the raffia bag, the cardboard bag and plastic bags recycled up to 50-70% Elsewhere, microplastics have been removed from all cosmetic and personal care products; and tests are being carried out in some stores to incorporate compostable bags and reusable bags in the fruit and vegetables section. Mercadona also collaborates with dozens of food banks and charity canteens around Spain, to which it donated 8,300 tons of food in 2018. Its collaboration also extends to 33 foundations and training centres,

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which provide the original trencadís murals that decorate the fishmonger and butchery sections of its supermarkets. More than 1,000 people with disabilities participate in their construction. Finally, Mercadona has built vertical gardens and landscaped roofs in some supermarkets that improve the integration of the stores in their environment.

Far more than a Market The Total Quality Management (TQM) system which has been implemented at Mercadona clearly pervades every part of the organization. This is illustrated maybe best of all by the reluctance of Mr, Martinez

MERCADONA

Green roof of the calle Ayala supermarket in Madrid

“The company has had to reinvent itself many times in order to become the Mercadona it is today” to accept praise for what it has achieved, telling Business Excellence: “We have much to improve on in order to be more and more socially responsible.” It’s that commitment to improve which has made Mercadona. Mr, Martinez says: “The company has had to reinvent itself many times in order to become the Mercadona it is today. That’s why at Mercadona we say that “change is the most constant thing”. Currently, we are in a process of transforming the company. In the next five years we will invest 10 billion euro to transform Mercadona.” Among other things, the transformation will involve adapting all of its supermarkets

to the New Efficient Store Model, expand and automate the logistics blocks to eliminate employee overexertion. digital transformation, enhance sustainability, and of course, develop in Portugal, where it hopes to open 150 stores within 7-8 years. Mercadona is truly more than just a market. MERCADONA

 900 500 103  info@mercadona.es @Mercadona www.mercadona.es

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Medellín

AN ICON OF THE

Medellin, Colombia’s second city, has a the Urban Land Institute chose it a RESEARCH BY

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n Metro

ABURRÁ VALLEY

a lot to be proud of. As recently as 2013, as the world’s most innovative city.

ernando Ruiz BUSINESS EXCELLENCE [ ISSUE 1467 ]

edellin, Colombia’s second city, has a lot to be proud of. As recently as 2013, the Urban Land Institute chose it as the world’s most innovative city. It beat off 200 other cities to win the award in a contest that took into account eight separate criteria, ranging from infrastructure and education to livability and culture. Perhaps no institution in the city better exemplifies all four of these metrics better than its metro system - Metro Medellin. In 2020, Metro Medellin will celebrate 25 years. Like all the best public investments, it

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has a symbiotic relationship with its city: It became successful because of the people, and the people became more successful because of it. We recently spoke with Andres Fernández, part of the Communication Team at Metro de Medellin about how its impact on one of the world’s most innovative cities, and where it sees its future.

Origins Mr. Fernández tells us: “Metro Medellín is a mass transit company that operates in

MEDELLÍN METRO

“We’ve just turned 24 years of age, and we’ll celebrate 25 years this coming year”

Medellín and in the geographical area that is Medellín, which is the Aburrá Valley. The Aburrá Valley is also made up of Medellín and has nine other municipalities close to Medellín. The metro began commercial operations in 1995 on November 30, we’ve just turned 24 years of age, and we’ll celebrate 25 years this coming year.” Having started with just two lines, the metro system quickly expanded, he says: “We added a few more lines which use different kinds of transport technology - most notably

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the cable car. Cable cars are usually used to transport tourists, but in 2004, we delivered the first cable car in the world that is used as a mass transit system. You may ask why! Well, Medellín is a city that is located in a narrow valley, like a canyon, and we needed what we call a ‘social innovation’ to connect people living there to the city.” As Mr. Fernández points out, reimagining what is essentially a tourist vehicle as a mode of mass transportation is an innovation in itself. The city already has five, and is in the process of finishing the construction of its sixth line. To this, it also added three BRT (Bus

Rapid Transit) lines, which run the length of the city - one with exclusive access, and two more which share lanes with buses. Also there is a tram line. As recently as the end of November 2019, it began running its first electric buses in the city - another new milestone for Metro Medellin, ensuring that Metro Medellin now has a metro system, trams, cable cars and buses. “We’re proud of this multi-mobility and bringing all of them together is what we aim for,” he says.

Impact on the City The many international awards that Medellin

“We’re proud of this multi-mobility and bringing all of them together is what we aim for”

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MEDELLÍN METRO

He continues: “We also have has won over the past 15 years Did you know? a program called “rolling words” the latest of which was the Lee where there are some mailboxes Kuan Yew World City Prize in situated in our stations where 2016 - all underline the impact The cable cars people can take a book, and that Metro Medellin has made on reach the poorest return it after they’ve read it, so the city. Mr. Fernández says: “Yes, neighbourhoods that another person can read it. it’s an issue that we promoted of Medellin, And we have two small rooms even before starting commercial located on to make art exhibitions in two of operations back in 1995, and it’s hillsides, where our stations. So, rather than a what we call ‘Metro culture’”. there was little means of transportation we try Metro Medellin envisions or no formal to see it not simply as a transport Metro culture as a new positive transportation company we see ourselves as relationship between them before the arrival generating quality of life, and all and the city through various of the cable cars. our initiatives reflect that.” initiatives and strategies. Mr. But the biggest impact of Fernández expands on this: “For all has unquestionably been example, with the community socioeconomic: “our cable cars reach the we have citizenship training programs in poorest neighbourhoods of Medellin, located citizenship for children and for young people, on hillsides, where there was little or no called “Metro friends” and “school of leaders”. formal transportation before the arrival of We also promote our users access to art and the cable cars. The cable car made them less culture and have 5 libraries within the system marginalized, and gave them a new incentive stations that we call ‘ Bibliometro’”.

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BUILDING THE FUTURE Service Areas: • Civil Construction • • Telecommunications • • Oil and Gas • • Metal Infrastructures & Constructions • T (1) 253 0188 E telval@telval.com

www.telval.com TELVAL SAS TELVAL SAS es una empresa constituida 1986, con el objeto de prestar servicios integrales de ingeniería y arquitectura, que incluyen los campos del diseño, consultoría, interventoría y construcción de obras civiles.

TELVAL SAS was formed in 1986, with the purpose of providing integrated engineering, architectural services. Its services include design, consulting, supervision and civil engineering construction.

En junio del año 2004 recibió la certificación de su sistema de gestión de calidad y en abril de 2007 certificó el sistema de gestión ambiental y de salud ocupacional, actualmente llamado seguridad y salud en el trabajo.

In June 2004 TELVAL SAS received the certification of its quality management system and in April 2007 it was certified with for its environmental management system and occupational health, currently called security and health at work.

Durante más de 30 años de existencia se ha caracterizado por ser una empresa comprometida con las necesidades y expectativas del cliente, la conservación del medio ambiente y el bienestar de nuestros trabajadores, que busca promover la honestidad y la transparencia en todas su actividades, creando valor a sus accionistas, clientes, colaboradores y la sociedad en general. Es su intensión seguir trabajando con todo su esfuerzo para destacarse dentro de la industria de la construcción y seguir entregando obras de alta calidad que además aporten al desarrollo de nuestra sociedad. www.telval.com

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During more than 30 years of operations, TELVAL continues to prove itself as an organisation committed to the needs of its clients, the conservation of the environment as well as the development and wellbeing of its staff. It has built its brand on the foundation of honesty and transparency across all of its activities with the goal to continue to meet and exceed the expectations of its shareholders, customers, collaborators and community. Its goal is to continue delivering superior work and putting effort to stand out in the construction industry and continue delivering high quality works that also contribute to the development of our society.

MEDELLÍN METRO

“If we hadn’t mobilized those passengers, we’ve calculated that an extra 675,000 tons of CO2 would have been emitted into the atmosphere” to look for work in the city, by providing them with a fast and economic means to reach the centre. This was as true for workers as it was for students in those areas and made a huge contribution to the local economy.”

Sustainability These days, a city doesn’t pick up global awards unless it’s sustainable, and Metro Medellin certainly contributes in that regard. As Mr. Fernández emphasis: “our metro is electric, our cable cars are electric, most of our

buses are electric (some run on gas) and the tram is electric. We have a great advantage in that energy matrix in Colombia is very clean, with most of its energy being hydroelectric.” In 2018, Metro Medellin transported an estimated 300 million passengers. Mr. Fernandez says: “If we hadn’t mobilized those passengers, we’ve calculated that an extra 675,000 tons of CO2 would have been emitted into the atmosphere. That’s not to mention other pollutants such as PM 2.5, which is particularly dangerous in a canyon with

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MEDELLÍN METRO

“It seems like very little can stop it from achieving that goal”

its specific climatic conditions.” Clearly, the metro system’s impact on the poorest suburbs of Medellin hasn’t just been socioeconomic.

Future Plans There’s plenty of work underway at Metro Medellin. As Mr. Fernández points out: “we have a master plan, called “trust in the future” and projects the growth of the company to 2030. The plan takes in five separate components, including the expansion of the metro, which defines 16 new lines to be built, the rollout of more electric buses, the “multi-purpose railway corridor” which will revive one of the train lines that used to operate in the valley of Aburrá, a national rollout of a train system that crosses the country, and finally, a management plan to bring it all together.” Closing in on its 25th anniversary, we asked Mr. Fernández how it was going to commemorate the milestone. The answer arrives quickly and is unequivocal: “We’re going to be the most daring, dynamic and human company in the development of mobility solutions and in the transformation of sustainable territories in Latin America, guaranteeing financial, social and environmental sustainability. That is our goal for 2020.” It seems like very little can stop it from achieving that goal. MEDELLÍN METRO

 57(4) 4449598  info@metrodemedellin.gov.co @metrodemedellin www.metrodemedellin.gov.co

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BANK OF THE AMERICAS Scotiabank Peru Two of the largest trends witnessed in the global banking industry over the past 25 years have been the consolidation of national banking industries RESEARCH BY

Fernando Ruiz

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SCOTIABANK PERU

wo of the largest trends witnessed in the global banking industry over the past 25 years have been the consolidation of national banking industries, whereby most countries are dominated by three to four banking groups (often referred to as the ‘big four bank phenomenon’) and the movement of western banks into so-called emerging economies, where they could enjoy the benefits of an unprecedented rise in the middle class. One of the best examples of the second trend is provided by Scotiabank Peru. Part of the eponymous Canadian banking group, it begun in Peru in 1997 at a time when GDP per capita was US$2,340. Twenty years later, in 2017, that figure had almost tripled to US$6,571, growth - it should be noted which Scotiabank Peru both benefited from

of the shares of Peruvian banking firm, Banco Sudamericano. This move allowed Scotiabank to ‘dip its toes in the water’ and familiarize itself with the local banking environment. It also gave them access to some of the best banking talent in Peru, many of which would become pivotal to the firm’s management in the years that followed. In 2007, it announced that it had purchased the remaining 65% of Banco Sudamericano on the same day that it acquired 77% of the shares of Banco Wiese Sudameris. In the space of just a few hours, it had moved from being a minor player to being the third largest bank in the country. With over 170 branches and the largest network of ATMs in the country, this also marked a huge milestone in bringing low income Peruvians into the banking system.

“There were other acquisitions along the way, too. It acquired Banco del Trabajo in 2008, and in 2015, acquired Citibank’s Peruvian commercial and retail portfolio” and contributed to. The number of bank accounts has also grown from less than 10% of the population to nearly 50% in that time. In 2018, Scotiabank Peru was the third largest banking group in Peru by annual earnings, with 888 million Peruvian soles (approximately US$250 million) in net earnings - this is quite a phenomenal achievement for a relatively new player. More than that, it hints at a company which is doing things right and learning from experience it has accumulated all over Latin America. We decided to take a deeper dive into the success story and see what Scotiabank Peru is all about.

Beginnings The Scotiabank Peru story began when its parent company, Scotiabank, acquired 35%

There were other acquisitions along the way, too. It acquired Banco del Trabajo in 2008, and in 2015, acquired Citibank’s Peruvian commercial and retail portfolio. In 2008, it entered the pension fund business for the first time in Peru with the acquisition of Profuturo, following this up with the purchase of AFP Horizonte, giving it a client base of close to 2 million and access to a whole new sector of the industry. Progress didn’t stop there, however. In 2019, Scotiabank Peru purchased 51% of Banco Cencosud, creating the country’s second largest credit card issuer. Of further significance is the Cencosud Group’s strong presence in consumer retailing, where their outlets can now double up as banking outlets, rapidly enhancing the reach of the combined

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T. +51-1-3260601 | F. +51-1-3264879 | E. cime@cime.com.pe | www.cime.com.pe

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SCOTIABANK PERU

“In 2019, its banking division in Peru has over 10,000 employees, 310 branches and 975 ABMs across the country” banks and placing them at the heart of the consumer retail experience.

Success Aside from ongoing growth in the profitability in its operations, the success of Scotiabank Peru can be measured by numerous metrics. In 2019, its banking division in Peru has over 10,000 employees, 310 branches and 975 ABMs across the country. It claims approximately 3.5 million retail, corporate, commercial and institutional clients and is

rapidly growing this number as it looks to provide more Peruvians with bank accounts. The Scotiabank group is also renowned for being an exceptional employer and it’s no different at its Peru division. In 2019, it was named by the Great Places to Work Institute as the 6th best place to work in Peru, a result which mirrors that of other results achieved across Latin America. Employee reviews on other sides seem to confirm this, with Scotiabank regularly coming in for scores above 4 out of 5 - almost unheard of in banking.

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Scotiabank Peru has also been recognized on the Good Corporate Governance Index by the Lima Stock Exchange (BVL) and EY. In 2018, it enjoyed further recognition as one of the ten most admired companies in Peru, which was awarded by PWC and El Diario Gestion. Finally, and most notably,it has been recognized by the Peruvian Institute of Business Administration for excellence in promoting education for young people.

Digital Innovation The digital transformation of banking in Peru is also moving apace thanks to ongoing

investment by Scotiabank Peru and others in the field. Today, the bank estimates that one of every three of its loans and one of every four of its deposit installments is made digitally. As this grows, it has the potential to completely reshape the bank’s value proposition for its clients, retail and commercial. The bank’s digital innovation is driven by an in-house Digital Factory, one of only five that the Scotibank group has, underlining its commitment to Peru. In total, 100 people are employed by the initiative, whose explicit aim is to improve the digital client banking experience. This will allow the bank to

“The bank’s digital innovation is driven by an in-house Digital Factory, one of only five that the Scotibank group has, underlining its commitment to Peru”

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HEADER FOLIO

anticipate clients needs and offer better services, based on their own preferences. The team combines some of the best mobile and UX developers in Latin America with financial leaders, but above all, IT security. The bank operates under a â&#x20AC;&#x2DC;security first, agility secondâ&#x20AC;&#x2122; maxim, and is currently performing a range of security tests to ensure that the customer digital experience is not only best-in-class, but also as secure as anything currently available thus ensuring maximum buy-in from its customer base.

Sustainability Scotiabank Peru was one of the first banks in Latin America to offer free banking to its clients a huge incentive for low income

Did you know? In 2017, Scotiabank began a threeyear partnership with CARE Peru to help improve the economic situation of families living in poverty. It provides financial support to run programs, and Scotiabank e m p l o y e e s volunteer their time to help run financial k n o w l e d g e workshops.

people to join the banking system and avail of credit and other services. It also significantly improves the safety of these individuals by ensuring that their money is kept safely in deposits, rather than in the form of cash. This progress at the micro level inevitably feeds into the macro level and has contributed to Peruâ&#x20AC;&#x2122;s growth story. In 2017, Scotiabank began a three-year partnership with CARE Peru to help improve the economic situation of families living in poverty. It provides financial support to run programs, and Scotiabank employees volunteer their time to help run financial knowledge workshops. In 2018, with the support of local governments, knowledge-building workshops

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SCOTIABANK PERU

“The latest sign of this is the acquisition of 51% of Banco Cencosud. The acquisition looks like a landmark in the democratization of Peruvian banking”

were held to deliver skills related to entrepreneurship, financial well-being and social security. Since the program began, just over 2 years ago, over 3,000 small business representatives from 133 organizations – 59% led by women – have been trained in Peru. In addition, 105 organizations were trained in a second phase to deepen their skills. A further commitment to the empowerment of women was shown with a campaign it launched called ‘The Price of Equality’ whereby women received a 29.9% discount at Scotiabank outlets - the exact amount of the wage gap that had been shown to exist in Peru.

Partners and Suppliers A 22-year presence on the ground in Peru, combined with a strong presence overall in the Americas, has allowed Scotiabank Peru to build a world class network of partners and suppliers. These include tech-based firms like CIMA Latin America SAC - Scotiabank Peru’s provider of digital document archiving on its cloud platform, Processos de MC, a card terminal provider, Iron Mountain, a data security firm, and Oracle Peru, whose platform allows Scotiabank to perform so many of its operations. Scotiabank Peru also leverages its relationships with other firms in the finance industry, finding synergies with firms that specialize in different functions to its own. These include PWC Peru, Unibanca - which collaborates with Scotiabank on payment services and card issuing, El Cristal, an

equities broker and asset management firm, and Alto Contacto, a contact management operation that ensures Scotiabank Peru’s customer contact remains best-in-class.

New Horizons in Peruvian Banking What emerges from looking at Scotiabank Peru is a bank that believes in the country. When others were winding down their operations in Peru, Scotiabank kept looking for new opportunities to explore within the country. It consolidated by acquiring other banks, expanding the scope of its services and brought a new, more inclusive type of banking in the process. Scotiabank Peru has a truly symbiotic relationship with Peru and its people. The latest sign of this is the acquisition of 51% of Banco Cencosud. The acquisition looks like a landmark in the democratization of Peruvian banking. It also represents the coming together of a a great banking institution with a great retail institution. It promises to bring more banking innovation to a greater swathe of people. You get the impression that this success story in Peru has a long way to run.

SCOTIABANK PERU

 01 311 6000  info@scotiabank.com.pe @scotiabank www.scotiabank.com.pe

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MARKING THE ROAD AH

The The National Road Administration (ANE, from t is responsible for developing the countryâ&#x20AC;&#x2122;s road net strategy for tourism RESEARCH BY

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HEAD FOR MOZAMBIQUE

the Portuguese Administração Nacional de Estradas) twork, a crucial element of any country’s long-term m, trading and more.

Eurides Lopes BUSINESS EXCELLENCE [ ISSUE 1467 ]

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ANE

ith a coastline stretching over 2,000 kilometres, Mozambique, in southeast Africa, is home to some of the most stunning, preserved beaches in the world. Technically, this paradise should be more accessible than those in more popular tourist destinations like the Maldives and the Seychelles, but a historical lack of infrastructure has hindered progress on this front until now. Thankfully, things are changing in Mozambique. The The National Road Administration (ANE, from the Portuguese Administração Nacional de Estradas) is responsible for developing the country’s road network, a crucial element of any country’s longterm strategy for tourism, trading and more. Over the past few years, it has made massive strides in moving Mozambique forward.

contributing to the economic, social and cultural development of the country.” Its stated vision was to become a reference for road transportation on the continent of Africa. The importance of the ANE to Mozambique was underlined right at the outset. In 2001, it played a central role in bringing the country’s road network back to normality after severe floods hit in 2000. This importance was further emphasized by a World Bank report at the time, which showed that the share of ‘good and fair’ roads in Mozambique increased from 25% in 1996 to 56% in 2002. 2002 was also a big year for the ANE with the development of the N4 Toll Road Witbank creating a southern corridor to connect Mozambique with South Africa. Traffic on the road grew by around 5-7% per year. The impact on trade was almost immediate and

“2002 was a big year for the ANE with the development of the N4 Toll Road Witbank creating a southern corridor to connect Mozambique with South Africa” A government organization, the ANE has recently stepped up its efforts to improve the nation’s road infrastructure, and there are already tangible signs that this work is paying dividends. We decided to look at the positive impact that these changes are already making on the lives of the Mozambican people, and how modernization of the road networks by the ANE reflects broader changes happening in the country.

Origins and Early Days The ANE is an autonomous public company, founded in 1999 with the stated aim of “guaranteeing the connection and transport of people, goods and services in a way which is secure, economical and sustainable,

astonishing; in 2001, the year before the road was operational, Mozambican exports to South Africa were US$76 million; by 2012, this figure had grown to US$951 million. As the first road concession project in the country, the N4 Toll Road brought about a change in thinking for Mozambique’s roads: progress could be sped up considerably through utilizing investment from different sources. The lessons learned on the project are already being put into action on a number of other projects, which will bring Mozambique’s road network to a new patamar.

Delivering on its Mission A prime example of the ANE’s rethinking of road financing could be seen in 2016,

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ANE

“Its new experience with project finance meant that the ANE could scale up its operations far faster than before”

when it announced in 2015 that the road between Nampula and Nametil, a distance of 72 kilometres that included six bridges and 49 aqueducts. The project was financed with a loan from the South Korea ImportExport Bank. Its new experience with project finance meant that the ANE could scale up its operations far faster than before. In 2018, the ANE announced that it was opening up the concessions of four roads, all connections from the EN1 highway,

which would link three separate regions of the country. This initiative was followed in 2019 by the announcement of new 30-year concessions for five national roads. This includes construction, upgrades and maintenance and the transfer back to Mozambique after the concessions end. The EN1 highway, running north to south, is seen as pivotal to Mozambique’s ambitions in the development of its roads. When the suspension bridge over the Bay of Maputo

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Journey of

SUCCESS LEA Group was established in 1953 in Canada. To augment service delivery around the globe, incorporated 3 operating companies, viz. LEA Consulting Limited with areas of operations in Canada and Northern America, LEA International Limited for international operations, and LEA Associates South Asia Private Limited in Asia, Far East, Africa and Middle East. LEA Group has over 2500 qualified, experienced and committed employees, experts in their fields of specialization. Clientele include Private, Government, multilateral funding agencies. In-house talent pool is capable of executing projects on all formats of funding. With synergy among operating companies and innovation, LEA Group provides technically superior and cost effective solutions matching to client’s exacting needs in Developed, and Developing countries. With client first policy, we are partners to development serving client beyond scope of services, technology transfer, protecting environment, and serving the society.

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ANE

“The government estimates that tourism levels doubled in just a year, after the delivery of new roads in 2018”

was completed in late 2018, its connection with 115 kilometre road southward effectively extended the EN1 to around 2,600 kilometres. At the other end of the road, in the north, new paving will extend to the EN1 to reach over 3,000 kilometres in total, making it longer than the N2, the longest road in South Africa.

Impact of the ANE’s Work The impact of the work that the ANE conduct is transformative. The growth in trade between Mozambique and South Africa over

the past 15 years is just one indicator. Take the amount of time saved: a journey from Maputo, Zimbabwe’s capital, to the border with South used to take five hours. With the new road in place, it takes just over an hour to get there. For the underprivileged in Mozambique, rural roads now provide access to essential medical services, schools, social facilities and a range of opportunities that were literally cut off to them before. The government also estimates that tourism levels doubled in just a year, after the delivery of new roads in

BUSINESS EXCELLENCE [ ISSUE 1467 ]

2018. Most of these were from neighboring South Africa but it points at huge potential in the future. Then there’s the new road that connects Mozambique with Tanzania - the first time that a paved road has existed on this route. The “Unity Bridge” which crossed the Rovuma River that runs between the two countries, was built in 2010. And yet, it was unused because of a lack of roads on the Mozambique side. Now that these roads have been delivered,

another trade route and a range of economic opportunities has opened. No wonder the President of Mozambique called it “a dream come true.”

Partners and Suppliers The history of the ANE is one of collaboration with other firms to scale up Mozambique’s roads as efficiently as possible, and the broad range of its partners and suppliers reflects this. Consulting for many of

“The exponential growth of Mozambique’s economy over the past 20 years is indelibly linked to the establishment of the ANE.”

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ANE

its projects has been provided by LEA Associates, as well as SGS MOZAMBIQUE LDA. The firm also works with TRAC (Trans African Concessions) in delivering the concession roads outlined above. One of the major contributors to many of ANE’s projects has been the China Road and Bridge Corporation (CRBC), itself responsible for work on the landmark suspension bridge in Maputo. International firm Humminbird Construction Engineering has also been invaluable in this area. It turns to Triana Business Solutions for IT and communications, while security is provided by the Chelsea Group and Perfect Security. Finally, a respectful mention goes to Correios de Moçambique, the national postal service of the country. Both companies enjoy a symbiotic relationship in developing Mozambique’s communications infrastructure, each one benefitting enormously from the work of the other. Further dividends which will come of this partnership

in the years ahead include package delivery to rural areas and e-commerce.

The road ahead The exponential growth of Mozambique’s economy over the past 20 years is indelibly linked to the establishment of the ANE. On its foundation in 1999, Mozambique had a GDP of around US$5 billion. By 2017, that had grown to around $12 billion and by some estimates, 2019 will be closer to $15 billion. Huge opportunities are arising everywhere in Mozambique because of its work. The road ahead is with the ANE.

ANE

 21-476163 / 7  info@ane.gov.mz www.ane.gov.mz

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The T

GIVING WIN TURKS AND CA

The Turks and Caicos Islands are a C traditionally accustomed to recei RESEARCH BY

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TCIAA

NGS TO THE AICOS ISLANDS

Caribbean archipelago perhaps more iving cruise ships than airplanes.

oseph Philips BUSINESS EXCELLENCE [ ISSUE 1467 ]

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THE TCIAA

he Turks and Caicos Islands are a Caribbean archipelago perhaps more traditionally accustomed to receiving cruise ships than airplanes. But since 2006, when the Turks and Caicos Islands Airport Authority (TCIAA) was established to control and manage the state-owned airports within the islands, the balance has been redressed. In 2018, the islands welcomed 1.52 million visitors - a new record, which was boosted by tourists flying in. In 2019, the TCIAA refurbished its apron and terminal building at Salt Cay Airport and renewed the international safety certification for its aerodrome, promising further growth in the years ahead. In addition, it announced a series of upgrades to be made at its Providenciales and South Caicos airports.

substantial increase in passenger numbers. We’ve attracted new carriers and new routes, such as Southwest, Jet Blue, and United, we’ve moved from having low connectivity to a much broader-based connectivity. We have flights coming in from New York (JFK and Newark), Miami, Charlotte, NC, and Dallas, as well as the opening of a direct flight into the Eastern Caribbean – British Airways now operates a 777 twice weekly on Sunday and Thursday into Antigua.” Growth in tourism means economic impact on the ground. Even though passenger growth has exceeded all projections Mr. Smith, accepts the responsibility of finding a way to make it work, even if it means fasttracking the new terminal at Providenciales to cope. He says: “ We are a major employer,

“The first significant milestone was to develop the gateway airport of Providenciales International” At an important juncture for the TCIAA, we caught up with John T. Smith, the Authority’s CEO, about how the company’s journey to here and where it fits into the future plans of the Turks and Caicos Islands.

The journey to here Having joined TCIAA in 2007, Mr. Smith has been with the company almost since its inception. As he explains, the company had lost over $3 million in its first year of operation, so he and the other members of the executive team - all locals - had their work cut out. He says: “the first significant milestone was to develop the gateway airport of Providenciales International. It meant a lot to the whole team, all of which were able to make a contribution to the airport’s development.” This created a platform for attract more tourists. Mr. Smith says: “we’re proud of the

not just by number with 354 employees, but by the significance of the work we do and the important role it plays on the main economic driver, which is tourism. About 84 percent, if not more, of the GDP of Turks and Caicos is generated from tourism. We have very few exports. Tourism is our bread and butter. Therefore, the importance of the airports and aviation cannot be overstated.”

Creating a platform for growth With the responsibility for all government aerodromes within the Turks and Caicos Islands, the TCIAA needs to ensure their continuous development to cater for tourism growth. Mr. Smith says: “Providenciales International Airport, known as the gateway, caters for 80 percent of our traffic. Salt Cay Airport has very seasonal traffic, while South Caicos Airport recently did rehabilitation work

BUSINESS EXCELLENCE [ ISSUE 1467 ]

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THE TCIAA

“Providenciales International Airport, known as the gateway, caters for 80 percent of our traffic”

on its control tower and runway in phases one and two and we’re embarking on phase three, which includes construction of a terminal building, and a combined services building with a firehall and an engineering section.” He continues: “Then we have North Caicos Airport – we’re in talks with the government and the Board to look at how best to go about developing that one. Because, while there isn’t a lot of existing traffic demand, there is a significant amount of development planned for North Caicos, so it makes good sense to have an airport there to facilitate that

development. Grand Turk is our other airport. Grand Turk, itself, is the capital of Turks and Caicos and where the government seat is located, even if it doesn’t generate much traffic in terms of tourist numbers.”

Challenges and Achievements All of this has not been without its challenges, of course. Mr. Smith cites procurement as being one of the major hurdles that the TCIAA has had to overcome: “We are an island country – everything is imported – and trying to get equipment here in a timely manner can be

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difficult. The other challenge we have is with our vehicles, mainly the fire engines, which are very costly. Operating in a salt environment, the rate of deterioration is much higher than elsewhere, and the replacement period is much shorter.” On the achievement side, Mr. Smith is emphatic: “It’s all about recovery, and that starts with our wonderful local staff; the turnaround from losing $3 million a year to generating revenues of $37 million; the focus on infrastructure development in the five aerodromes the Authority is responsible for; and working with Tourism partners, we were able to increase passenger numbers from 20,000 per month in 2007, to averaging 42,000 per month, at present. In 2007, there was a two or three month off-season trough period. Today, we don’t really have an off-season.”

Partners and Suppliers The small community (theTurks and Caicos Islands are home to no more than 30,000 locals), that the TCIAA operates in demands collaboration from everyone. Mr. Smith says: “it is incumbent upon us, working with the Hotel and Tourism Association and Tourist Board, to develop new routes, which makes sense because they have a vested interest in tourism, and they all bring different benefits to any negotiations.” Private companies also play a role here. For example, RBS Architects were the sole

“The Turks and Caicos Islands are second only to the Vatican City for tourist numbers per capita”

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THE TCIAA

consultants for design technical work on the airports’ redevelopment, with EDS as the sub-consultant. Howard Industries provided much of the construction materials, while local firm Island Drilling Limited conducted much of the construction. Finally, well-known companies like TCA Handling, Cargo Express and Amadeus ensure that the airports daily operations run smoothly.

Looking to the Future The Turks and Caicos Islands are second only to the Vatican City for tourist numbers per capita. It is the remit of the TCIAA - along with its partners - to ensure that this valuable source of revenue for the local economy continues to thrive. A new American Airlines route from Chicago will soon begin and a 7-storey Hilton Hotel will finish its construction, all pointing in the right direction.

This, along with the overhaul of the Providenciales Airport and the other aforementioned changes, all form part of the TCIAA’s Master Plan under Mr. Smith. This is a masterplan which the Authority can use as a template for future developments. Mr. Smith says: “As I always say, we are responsible for ‘sweating’ the assets’ on behalf of the government and the people.’ Those assets appear to be in good hands at the TCIAA, which is giving wings to the Turks and Caicos Islands. THE TCIAA

 649 946 4420  info@tciairports.com @tciaa www.tciairports.com

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