BE Magazine Issue 1468 by Business Excellence Magazine

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ISSUE 1468

EUGAL Pipeline

THE CENTREPIECE OF EUROPE’S SHARED FUTURE IN ENERGY The European Union has long seen energy security as being a core central tenet of the grander European project.

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THE TEAM RESEARCH Eurides Lopes e.lopes@bus-ex.com Fernando Ruiz f.ruiz@bus-ex.com Joseph Philips j.philips@bus-ex.com Ricardo Saguier r.saguier@bus-ex.com

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Gustavo Pittelli g.pittelli@bus-ex.com María Bernardita Guschmer m.guschmer@bus-ex.com

EDITORIAL Jairo Echeverri j.echeverri@bus-ex.com Charline Simonin c.simonin@bus-ex.com Michael Minihan m.minihan@bus-ex.com

CREATIVE Jason Olayinka j.olayinka@bus-ex.com Karen Teh k.teh@bus-ex.com

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CONTENTS 6

INFRASTRUCTURE:

INSIGHT:

STRATEGY:

Infrastructure Projects to Expect in Australia European Port Outlook 2021 The role of APAC Infrastructure During and After the Pandemic COVER STORY

18 Eugal Pipeline

The Centrepiece of Europe’s Shared Future in Energy The European Union has long seen energy security as being a core central tenet of the grander European project.

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BE [ ISSUE 1468 ] 34

Infrastructure Malta

Future-Proofing Malta’s Infrastructure The Mediterranean island nation of Malta is the place for infrastructure development.

INVAP

Continuing Latin America’s Proud History of Innovation The first company in Latin America to be certified by NASA has strong credentials.

Europe’s Gateway to Africa Business Excellence has profiled many port authorities over the years, but perhaps none during a climate that comes close to what the coronavirus pandemic has brought to this industry.

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Shanta Gold

Revisiting Tanzania’s Gold Star Given that over half of the country’s export income comes from gold, the success of Shanta Gold is inextricably tied with the fortunes of Tanzania.

Kenyan Ports Authority

Playing its Part in East Africa’s Logistics Revolution Business Excellence last visited the Kenyan Ports Authority (KPA) in June 2014, at a time when it was planning a second container terminal for Mombasa Port to further extend its capacity.

Nucleoeléctrica Argentina

Sustainable Energy Guaranteed! When the greatest achievements of the 20th century are mentioned, rarely does nuclear energy enter the conversation.

A New Era for Mozambique It could be the single most transformative event since the country achieved its independence from Portugal in 1975.

100 Port of Algeciras

Réseau Express Métropolitain

Montreal’s Transformative Light Rail Project With its narrow, winding alleyways and street signs in French, the city of Montreal is unlike any other in North America.

EDM

126

Puerto Buenos Aires

Eje de desarrollo de una nación entera La Ciudad de Buenos Aires, capital de la República Argentina, es la ciudad más poblada de todo el país y se encuentra ubicada en la región centro-este, sobre la orilla del Río de la Plata.

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Infrastructure projects to watch in Australia in 2021 Words by

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Ubi Destiny

INFRASTRUCTURE

he Australian government is on-course to boost spending in infrastructure in 2021. The move comes as the government looks to embark on a robust response to the economic damage of the COVID-19 pandemic. The impact of the pandemic has exacerbated the need for increased government spending. For instance, a 200% increase in migration from major cities to regional cities means that there is a rise in demand for utilities in regional cities. Unemployment has also been another major fallout of the pandemic. As of November 2020, Australia’s unemployment stood at 6.8%. For the 2021 budget, the federal government set aside A$ 7.5bn to fast track

infrastructure projects. The fund is part of a record 4-year that boosts infrastructure investments by 68%. State and territory governments have also committed to increasing their spend on infrastructure, with the total budget for 2021 averaging 26% more than last year’s budget. Infrastructure spending will form a significant part of government spending as it works to stimulate the economy. The increased spending is expected to provide up to 30,000 direct and indirect jobs in 2021 per Prime Minister Scott Morrison. Large projects that connect regions are expected to be a priority in the 2021 budget. As we take a look at some of the country’s on-going and yet-to-beawarded projects, here is a list of five projects we expect to benefit from the boost in spending: HOBART SCIENCE AND TECHNOLOGY PRECINCT As part of its plans to move its Faculty of Science and Engineering to Hobart’s CBD, the University of Tasmania has been building a A$400 million campus. The project, which began in 2018 is due to be completed in the first quarter of 2021. The campus is projected to accommodate over 3000 students and 700 staff members. It is expected to increase the demand for undergraduate students and enable research. The precinct will also aid the urban regeneration of Hobart’s CBD.

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METRONET (WA) Metronet WA commenced in 2017 as a fulfilment of one of the McGowan administration’s policies. The A$1.84bn railway project, which is due to be completed in 2023, aims to extend the transport network in Perth. Some parts of the project are due to be completed in 2021, including the 8.5km Airport Line. The Airport line will have stations at Redport, High Wycombe, and Airport Central. GAWLER RAIL LINE ELECTRIFICATION The upgrade of the Gawler Rail line is due to be completed by late 2021. The project which costs north of A$715 million was designed to provide more reliable rail service for the northern Adelaide community. The project is expected to deliver green, high-efficiency trains with better customer experience.

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MELBOURNE TO BRISBANE INLAND RAIL Also known as the Inland rail, this is definitely one of the projects to watch. After 129 years of proposals and debates over its necessity, the project was finally commissioned in 2018. When completed, it is going to be the longest freight rail project in Australia. The railway project will allow goods to be transported across the country in less than 24 hours, cutting down truck traffic and improving supply chains. The first stage of the A$10b project was opened in Q3 2020, and we can expect to see more funding flow towards it.

BRUCE HIGHWAY UPGRADE The highway upgrade is the largest road infrastructure program in Queensland history, covering a length of 1677km. Bruce Highway, which runs between Cairns and Brisbane, has been undergoing upgrades since 2013 to improve safety and increase capacity. So far, over 300 projects have been completed across its length, with more being added regularly. Upgrades on Cairns Southern Access Corridor, Haughton River, and Pink Lily Lagoon, Mackay Northern Access, Wide Bay Highway Intersection should all be completed before the end of 2021. The total cost for all upgrades scheduled for completion is around A$742 million.

INFRASTRUCTURE

MYALUP-WELLINGTON WATER PROJECT The Myalup-Wellington water project is focused on improving water distribution efficiency and decreasing salinity in the Wellington dam and its surrounding areas. The increased salinity in the jam has affected the groundwater in the area which has, in turn, affected the yield of farmers in the Myalup Irrigated Agricultural precinct. The A$390 project Is set to commence in 2021 and be completed by 2025. It has been marked as a high-priority project, partly due to the continued impact of the groundwater salinity on food production. M80 UPGRADE Also known as the Western Ring Road or the Metropolitan Ring Road, the M80 is one of Melbourne’s most important freeways. Its upgrade has been ongoing since 2009 and is scheduled to be completed in 2023. Most of the upgrade on the 38km route has been completed already. There is, however, still ongoing construction between Sydney road to Edgar road. New lanes are being added to the road in each direction, and a smart freeway lane management system is to be added to improve traffic flow management. WEST GATE TUNNEL The 4km tunnel project in the heart of Melbourne is designed to ease traffic on the West Gate Bridge. The project includes four new lanes on the West Gate Freeway, twin tunnels, and a second river crossing over the Yarra River. The A$6 billion project has been on since 2014 and is scheduled for completion in 2023. However, more parts of it should be accessible to the public this year. In December 2020, a brand new pedestrian bridge that is a part of the project was opened to the community. Parts of the bridge, however, are yet to be accessible as safety equipment like handrails are still being installed.

CONCLUSION The uncertainty during the early days of the coronavirus pandemic led to a stalling of most infrastructure projects. However, with vaccines rolling out across the country, optimism is building up. Increased government spending, coupled with private sector enthusiasm will drive multiple projects this year, As the country continues its journey to economic recovery, infrastructure spending will remain critical to its goals.

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INSIGHT

European Ports Outlook 2021 Words by

Michael Minihan

espite one of the world’s most integrated rail networks and an ever-expanding list of direct air routes from around the world, sea ports remain hugely strategically important to Europe and its ambitions. Over half of the continent’s imports still arrive by water, meaning that the availability and efficiency of ports is of paramount importance. More than merely linking supply chains and clusters, they are the lifeblood of the continent. Given this importance, it makes sense that Europe’s ports would want to speak with a common voice. In 1993, the European Sea Ports Organisation (ESPO) was founded with the intention of representing the interests of Europe’s port authorities and administrations at the EU level. The ESPO also functions as

“A HISTORIC PEAK FOR THE AMOUNT OF CARGO HANDLED WAS REACHED IN THE SECOND QUARTER OF 2019, WHEN 909 MILLION TONNES PASSED THROUGH ALL OF THE EUROPEAN UNION’S MAIN PORTS”

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a knowledge network to ensure that its ports authorities follow best practice and remain competitive on the global stage. EUROPE’S PORTS AT A GLANCE In total, the European Union has about 1,100 ports (this figure was 1,200 until the UK’s recent exit), most of which are managed by a port authority of some form. A historic peak for the amount of cargo handled was reached in the second quarter of 2019, when 909 million tonnes passed through all of the European Union’s main ports. Despite the pandemic rocking the continent, one year later, the ports still handled 755 million tonnes. Add to these numbers the near half a billion passengers that pass through Europe’s ports every year and one begins to see why Europe’s ports are such an important piece of the bloc’s economic infrastructure. The ESPO believes that around 2.5 million people are employed by ports, indirectly and directly - an average of around 2,300 people per port. The figure probably even underestimates ports’ true impact on employment across the continent. But aside from their logistical and economic roles, all ports also tend to serve a range of other functions. For example, they are nodes of energy, playing an important role in the import, export, storage and distribution of energy. And they are, as the

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ESPO puts it, “clusters of blue growth,” meaning that they play an essential role in the offshore fishing and leisure industry. In short, we depend on ports in ways that we’re often not even aware of. SPECIALIZED ROLES Moving away from the general, ports can also move into specialized niches, depending on their location or opportunities that exist for them to exploit. For example, many ports have given rise to industrial complexes that grew around them and became industrial hubs. The reasoning here is simple: the presence of the port effectively offers industrial hubs direct access to other markets, saving them on the logistics costs that would arise from transporting from elsewhere. Some ports also play a monitoring role, from a number of different perspectives: weather, pollution, illegal dumping of hazardous substances, and trafficking in all its guises. The largest ports are now equipped with highly sophisticated

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technology such as traffic monitoring systems and technical-nautical assistance, that allows them to monitor and collect waste and to avoid discharges at sea. A ROBUST AND STABLE LEGAL FRAMEWORK All of this means that Europe needs a framework to ensure that its ports are maintained to as high a standard as possible. Regulatory changes are underway in this area. For example, in 2017, the Port Service Regulation (PSR) was agreed to by the members of the ESPO. It sets out rules around financial transparency for ports receiving money from governments and other public agencies as well as issues around port charges and tariffs. Later on in the same year, the General Block Exemption for Ports (GBER) was adopted, which lays out rules around ports that previously received government funding, and how they receive their funding in the future, be that from public or private investors. Essentially, both

INSIGHT

pieces of legislation seek to put European ports on a stable financial footing, whilst simultaneously allowing them to compete more effectively on a global level. The financial aspect is important. In Europe, port revenues mainly come from general port dues charged on ships calling to the por and on the cargo handled. Port dues represent about half of the overall revenues of the port authorities. Ports therefore have to strike a balance between looking to make a profit, remain attractive to stakeholders in the logistics industry, and still respond to the societal demands of being a custodian of a public asset. THE IMPORTANCE OF INVESTMENT For all of the reasons outlined until now, investment in Europe’s port sector is key. In some ways, it has already fallen behind: The continent’s biggest port terminal, Rotterdam, is not even in the world’s top ten for cargo handled each year. In 2017, ESPO conducted research into the EU’s port funding requirements and estimated an investment gap of around $48 billion over the following decade to remain competitive with the best non-European ports. However, the European Union has failed to view ports as strategic assets, often underestimating their importance, and failing to provide adequate funds as a consequence. For example, in the Connecting Europe Facility (CEF), the financial pillar of Europe’s transport infrastructure policy, ports only received 4% of the funding. To emphasize the point, this means that infrastructure responsible for over half of the continent’s trade receives just 4% of the applicable funding. HOW DECARBONISATION CHANGES THE PICTURE The findings of EPSO’s 2018 Environmental Report were a stark reminder that decarbonisation isn’t happening fast

enough. 41% of European ports are already reporting operational challenges that they believe could be happening as a consequence of climate change. Similarly, 59% of those surveyed said that they were investing in measures that would mitigate the risks caused by climate change. As a report by EPSO succinctly puts this issue: “Ports are literally on the front row, when sea levels are rising.” And given that over 90% of European ports are located in or very close to an urban area, their decarbonisation goals are closely aligned with those of the cities in question. In an effort to address this reality, member states of the International Maritime Organisation (IMO) recently agreed to

“INFRASTRUCTURE RESPONSIBLE FOR OVER HALF OF THE CONTINENT’S TRADE RECEIVES JUST 4% OF THE APPLICABLE FUNDING”

reduce greenhouse gases emitted by ships by at least 50% by 2050, creating an onus to roll out measures to achieve the target. CONCLUSION The title of Rose George’s book on modern shipping, ‘Ninety Percent of Everything’ is an apt way of explaining the importance of ports to laypeople, given that shipping has no role if not for the ports that serve it. Ports are the silent champions of the global economy, and have played a hugely undervalued role in Europe’s prosperity. With massive investments being made in mega ports elsewhere in the world, it is time that Europe’s decision makers redressed the balance and gave ports their dues.

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The role of APAC infrastructure during and after the pandemic Words by

Jairo Echeverri

he infrastructure sector has played a crucial role during the pandemic in Asian-Pacific countries (APAC). The COVID-19 crisis brought severe consequences not only on the health of the population but also on the economy’s health. But despite global uncertainty about trade, supply chains, geopolitics, and the climate, infrastructure has been paramount for the show to go on. It’s the robust operational framework of capital assets such as water, power, communications, and most transport systems that have kept economies of the Asia-Pacific region active.

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PREPARING THE ECONOMIC COMEBACK Regardless, APAC experienced a decline in 2020 because of the COVID-19 pandemic. The region’s GDP contracted by nearly 1.5% year-on-year (y/y). However, a stable economic response is expected this year (2021), based on hopes that the gradual application of COVID-19 vaccines will reinforce the gradual revival of many APAC economies. Countries and all stakeholders from the region must avoid making past mistakes where economic crises have left a lasting legacy of low infrastructure investment.

STRATEGY

Empowering infrastructure should be a central part of economic stimulus plans because it enhances economic growth. It directly impacts economic growth because it increases the number of vital assets for competitiveness, such as roads, ports, and power generation. It also stimulates increases in private investment in productive activities. Many studies show significant multiplier effects of an investment in infrastructure. INVESTING MORE AND BETTER Nevertheless, those stimulus packages must have a clear sense of direction.

In other words, it’s less about instantly returning to the pre-crisis situation and more about seizing the opportunity to build back better for a more socially and environmentally sustainable future. “Over the past few years, we have seen more megaprojects, of greater scale and complexity than ever before, being proposed and progressed. High-profile examples include the new bridge linking Hong Kong to Macau and Zhuhai, Thailand’s Eastern Economic Corridor, Australia’s Inland Rail project and Indonesia’s new capital city, to be located in East Kalimantan, Borneo, which is estimated

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to cost US$33 billion”. The Belt and Road Initiative is another excellent example of a significant infrastructure project. It’s a trend worth sustaining, but only increasing investment will not be enough. The Asia-Pacific region must also invest better. Better investing requires better planning to choose the right project and then implementing it in the right way. Not only that, but it also requires changing the type of investments made. Namely, APAC countries must invest in sustainable infrastructure. THE FUTURE MUST BE SUSTAINABLE Sustainable infrastructure has three attributes: • It minimizes greenhouse gas emissions that cause global warming • It is resilient to the effects of climate change and natural disasters • Minimizes local pollution of air, water, solid and hazardous waste It is imperative to ensure that infrastructure is sustainable because not doing so can have adverse environmental effects that persist for generations and extend beyond

“IT IS IMPERATIVE TO ENSURE THAT INFRASTRUCTURE IS SUSTAINABLE BECAUSE NOT DOING SO CAN HAVE ADVERSE ENVIRONMENTAL EFFECTS THAT PERSIST FOR GENERATIONS AND EXTEND BEYOND THE GEOGRAPHIC INVESTMENT BOUNDARIES.”

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the geographic investment boundaries. The experience from the recovery of the financial crisis of 2008-2009 indicates that stimulus policies that emphasize sustainability have a greater return than those that do not. Investments in infrastructure can minimize greenhouse gas emissions by promoting the four pillars of decarbonization: • Renewable energy sources • Electrification • Public and non-motorized transportation • C onservation and restoration of ecosystems Ensuring that infrastructure is resilient to the effects of climate change and natural disasters is crucial; it requires careful risk analysis from the design and planning stages of any new project and improvements in disaster management policies. The Environmental, Social and Governance (ESG) Criteria could serve as a beacon for selecting the most promising projects. Limiting adverse effects on the local environment typically entails the same kind of investments that mitigate greenhouse gas emissions. Furthermore, they can have enormous benefits in terms of improvements in human health and the provision of valuable ecosystems. Finally, decision-makers in APAC countries should consider investments in natural infrastructure such as corals, built wetlands, and green roofs that, under certain conditions, can provide infrastructure services as cost-effective as traditional concrete and steel infrastructure. THE IMPORTANCE OF TECH INFRASTRUCTURE It’s also necessary to take advantage of technology to underpin the impact

STRATEGY

of investment in infrastructure. Health services are currently at risk of collapsing due to an overload of queries. However, using information technologies through digital media facilitates access to health services. ICTs allow more significant equity in access to timely medical care, enabling the evaluation, diagnosis, and treatment of suspected COVID-19 cases, minimizing the risk of transmission. The crisis is a clear opportunity to build back better, particularly considering pronounced developments that provide more efficient and cleaner services. In energy, the changes are driven by two simultaneous and mutually reinforcing trends:

“COVID-19 HAS BROUGHT AN UNEXPECTED PLOT TWIST ON THE ABOVE IN THE SHORT TERM AND WILL UNDOUBTEDLY HAVE A CONSIDERABLE IMPACT ON THE SECTOR IN THE LONG RUN”

In the transport sector, the most disruptive change will be automation, which will largely depend on digitization. In water and sanitation, technology can contribute to water resources management in an integrated manner. Technological disruption will also impact construction and infrastructure maintenance. Thus, emerging technologies can significantly reduce construction costs.

continue to bear the cost of most of the investment in infrastructure. Nevertheless, economically stressed governments will probably have a diminished ability to finance infrastructure for a swifter economic response. The size of the financial challenges ahead requires boosting publicprivate investment. Increasing investment for these types of partnerships reduces costs, improves the quality of assets, and free up the scarce public resources to meet other social needs. Organizations like the ASEAN Infrastructure Fund, Asian Infrastructure Investment Bank (AIIB), Asian Development Bank (ADB), and the World Bank Group, to name a few, will play a key role in leading transformations for the different sectors.

A TIME FOR WORKING TOGETHER Investors treasure the infrastructure sector for its stability and predictability. COVID19 has brought an unexpected plot twist on the above in the short term and will undoubtedly have a considerable impact on the sector in the long run. Simultaneously, it will create significant opportunities for investors and some other stakeholders. Governments, investors, companies, and the mutual support systems they establish will also be fundamental for APAC’s comeback. The public sector will undoubtedly

CONCLUSION Attitudes towards risk and the way it is shared may well have changed due to COVID-19 and its impact. However, it’s not likely that investors or lenders turn their backs on infrastructure. Investing in infrastructure has an important role in the region’s economic recovery plans. The COVID-19 crisis poses challenges and opportunities: APAC must then act today to ensure that it builds a better economic, social, and environmental future with efficient, digital, and sustainable infrastructure services.

•D ecentralization in generation • Digitization

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EUGAL P

THE CENTREPIEC SHARED FUTU

The European Union has long a core central tenet of the RESEARCH BY

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Pipeline

CE OF EUROPE’S RE IN ENERGY

g seen energy security as being grander European project.

oseph Philips BUSINESS EXCELLENCE [ ISSUE 1468 ]

he European Union has long seen energy security as being a core central tenet of the grander European project. For this to become a reality, countries within the bloc need to engage in cross-border cooperation and inter-connections to ensure that energy can flow across borders without restriction. For these reasons, EUGAL - the European gas pipeline - is fundamental to the future prosperity of the EU. Beginning at the Baltic sea, not far from the German-Polish border, EUGAL

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runs approximately 480 kilometres to Mecklenburg-Western Pomerania and Brandenburg to southern Saxony, before eventually arriving at the border of the Czech Republic, thus linking northern Europe’s gas supply with central and eastern Europe. According to the current bookings the Czech Republic will receive approximately 80% of the total capacity of the gas pipeline - or 45.1 billion m3 . Having completed the first string of the project at the end of 2019, the second string is

EUGAL PIPELINE

“Having completed the first string of the project at the end of 2019, the second string is already underway and nearing its completion”

already underway and nearing its completion at the end of the year 2020. Business Excellence recently had the opportunity to speak with Ludger Hümbs, the General Project Manager at EUGAL. Mr. Hümbs took us through the past, present and future of the project, outlining its place in Europe’s overall energy picture. What we found is a project which goes some way to addressing the ultimate EU objective of secure, low-cost, efficient and environmentally friendly access to energy for European citizens.

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EUGAL PIPELINE

“EUGAL therefore not only creates new connections, but also allows natural gas to be transported flexibly in every direction through the direct connection to existing natural gas pipelines”

A crucial block in the energy bloc The need for increased gas supply in Europe was outlined in stark terms in the European Network Development Plan (TYNDP) in 2017, which projected that the continent would have an annual demand gap of up to 183 billion m3 by 2035. At the same time, it was already well established that sourcing fuel itself was only part of the issue - additional transport capacities would also be needed to bring gas

to consumers. In this context, there was an irrefutable argument for EUGAL. EUGAL has four network links, allowing gas to be transported flexibly within Germany and to Western and Eastern Europe and to Western and Eastern Europe (along pipelines such as NEL, FGL306, JAGAL and the Czech network). Ludger Hümbs says: “EUGAL therefore not only creates new connections, but also allows natural gas to be transported

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EUGAL PIPELINE

flexibly in every direction through the direct connection to existing natural gas pipelines.”

Overview Regional planning procedures for EUGAL were concluded in 2017 and planning approval processes had all been cleared by the second half of 2018. As Hümbs tells us, this fast process also happened thanks to sharing some route with the Baltic OPAL pipeline: “The fact that it runs in an existing pipeline corridor minimizes its impact on people, nature and the

environment. Thanks to the efficient project management gas transportation already started in January of this year as planned.” As mentioned in the introduction, work is already well underway on the second string: As Ludger Hümbs says: “The technical laying works (lowering the pipeline into the ground, welding) for the second EUGAL string have been completed. The second EUGAL string still has to undergo a wide range of tests and inspections in the coming months. The second string should then be filled with

“The fact that it runs in an existing pipeline corridor minimizes its impact on people, nature and the environment”

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PPS. We connect. Safely. EUGAL - European Gas Pipeline Link Together with HABAU Hoch- und Tiefbaugesellschaft mbH we laid lots 1 and 2 from Lubmin to Ferdinandshof.

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gas for the first time, and gas will then flow through it in 2021.” The efficiency with which the project is being delivered belies its scale; for example, over 329 kilometres, there will be a dual pipeline, which technically means that a total of 809 kilometres of pipeline are being built. This is also no small undertaking as the General Project Manager points out: “Approximately 47,000 pipes were being laid for EUGAL (each measuring 1.40 metres in diameter, around 18 metres in length and weighing 15 tonnes). At peak times, there were more than 2,500 people working on the route.”

“At peak times, there were more than 2,500 people working on the route”

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(among others from German, Belgium, Italy, Netherlands and EUGAL transports gas to Denmark). The 2,500 experts at Germany, in the direction of the construction site come from Western Europe as well as on to The 2,500 dozens of countries from all over the Czech Republic. Inevitably experts at the the world and as well as dozens then, it has a diversified range of construction site of local companies.” stakeholders. GASCADE holds come from dozens And then, there’s the external 50,5% of shares of EUGAL. Its of countries from stakeholders - the general other shareholders, holding all over the world public. Ludger Hümbs says: “At 49.5%, are Fluxys Deutschland and as well as information events along the GmbH (belonging to the dozens of local route we have presented the belgian Fluxys group), Gasunie companies. potential course of the planned Deutschland Transport Services pipeline and background on the GmbH (belonging to the Dutch project to local residents. They Gasunie company) and ONTRAS have had the opportunity to obtain an overview Gastransport GmbH. of the EUGAL project and discuss it with the In fact, the project team is as European project team in person. The current location as the concept itself: Aside from the of the GDRM system in Deutschneudorf was shareholders, several other European firms found in the course of these information events have been involved: “The pipeline is being and a subsequent exchange.” built by international specialist companies

Did you know?

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EUGAL PIPELINE

“The movement towards a flexible combination of gas and renewable energy is seen as a pillar of the transition, and something that EUGAL will play a central role in.”

Sustainability The adoption of gas as a source of energy across Europe isn’t just about energy security - it’s also about the energy transition: the movement away from dirtier fuels such as coal, traditionally one of the major sources of energy in mainland Europe. The movement towards a flexible combination of gas and renewable energy is seen as a pillar of the transition, and something that EUGAL will play a central role in. Ludger Hümbs says: “As part of the regional planning procedure and the planning approval process, the EUGAL project had

two environmental impact assessments with different degrees of detail. Protecting people, nature and the environment has top priority for us and we examine such aspects with sensitivity.” He continues: “The construction of gas pipelines always entails a temporary impact on nature and the landscape. After recultivation and rehabilitation is finished, the route can hardly be noticed anywhere in the countryside. Extensive measures will compensate for the temporary effects during the construction phase, as well as the impact of new operating facilities (such as a valve station).”

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EUGAL PIPELINE

“What other project spanning nearly 500 kilometres could have been built in such a short period of time? W e like to think that EUGAL may have set a new milestone for projects of this scale.” A milestone in European energy It’s been clear from speaking with Ludger Hümbs that EUGAL is a project which he’s proud of. “EUGAL has been a very demanding and ambitious project within a very short space of time. The construction phase stands out due to an unmatched level of manpower. There were up to 2,500 people working at the construction site at peak times. We have and had construction going on in parallel over a length of 480 kilometres – construction projects like this are a rare occurrence.” Indeed, what other project spanning nearly 500 kilometres could have been built in such a short period of time? For this reason, we like to think that EUGAL may have set a new milestone for projects of this scale. With proper planning and a goal which everybody can get behind, EUGAL has proven that the highly ambitious can become highly feasible. Let’s hope that it’s less of a rare occurrence in the future.

EUGAL PIPELINE

 +49 (0)561-934-2727  info@eugal.de www.eugal.de

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Infrastruct

FUTURE-PROOFING MAL

With its population of less than half a million peop seem like an unusual place for the subject of RESEARCH BY

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ture Malta

LTA’S INFRASTRUCTURE

ple, the Mediterranean island nation of Malta may an article about infrastructure development.

oseph Philips BUSINESS EXCELLENCE [ ISSUE 1468 ]

ith its population of less than half a million people, the Mediterranean island nation of Malta may seem like an unusual place for the subject of an article about infrastructure development. But Malta is also home to the fastest growing population in Europe and the EU’s third fastest growing economy. The growth of both metrics calls for a long-term infrastructure plan and capital investment to deliver it. Both of these responsibilities fall within the mandate of Infrastructure Malta. Founded by

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the Maltese government in 2018, Infrastructure Malta is an agency entrusted with the development, maintenance and upgrading of all public infrastructure in Malta. Its importance is underlined by the fact that as the country continues to grow; a centralized authority stands to ensure an integrated development framework for the country as a whole. The scale of the funds distributed by Infrastructure Malta - in excess of €700 million - are testament both to the ambition of the authority and to the growth afoot on

INFRASTRUCTURE MALTA

“The system we had just wasn’t performing in line with what was required”

this beautiful Mediterranean Island, an historic hub of Europe. Business Excellence recently caught up with Fredrick Azzopardi, the CEO of Infrastructure Malta, who was kind enough to tell us about where this new organization is making a huge difference in its country.

Backstory Despite being the smallest country in the EU by area and the bloc’s smallest population, Malta is home to 68 local councils. These councils were traditionally responsible for

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Contact: +35679494661 / +35679572241 / +35621420086 info@vcgroup.mt | www.vcgroup.mt

Heard Tell us about your company and we’ll tell everyone else www.bus-ex.com

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INFRASTRUCTURE MALTA

“The government announced that it was going to invest €700 million in the country’s road network”

every aspect of the infrastructure within their own borders, from the planning stage to arranging funding, through to maintenance and upgrading. Unsurprisingly, this led to a system whereby councils competed against each other for the same resources, often leading to less than optimum outcomes. As Mr. Azzopardi says: “The system we had just wasn’t performing in line with what was required. The country’s population has grown by around a third in twenty years, and a new way of organizing infrastructure was needed to address that. In 2017, the government

announced that it was going to invest €700 million in the country’s road network and that it would make this the central task of a new yet-to-be created body.” This was the genesis of Infrastructure Malta. Appointing one body meant that there were no more conflicting interests in the development of Matla’s infrastructure an imperative when looking to sustainably support the country’s economic, social and environmental development. In 2019, having already been made responsible for the country’s road network, it was also

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given the mandate for the development and maintenance of the country’s maritime and port assets.

Projects

Professional Infrastructure Expertise VIAE JV

St. Anthony Farmhouse, Gharghur Road, Naxxar, Malta

T: +356 79 861 201 | +365 79 515 051

E: viaejv@gmail.com

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The centralized nature of Infrastructure Malta means that it has been better equipped than local councils to bring projects of a complex nature together. This has already been reflected in its output, even during the short period of time in which it has existed. Mr. Azzopardi says: “what we have now is a far more efficient way of achieving our goals and things which used to take weeks or months can now be done in a matter of days.” The first tranche of the aforementioned €700 million came at the beginning of 2019, when planned work began on the first 31 residential roads earmarked for investment. Some of these same roads had never been asphalted before, quickly underlining the difference that a centralized body could make to the fortunes of the country’s infrastructure.

INFRASTRUCTURE MALTA

“What we have now is a far more efficient way of achieving our goals and things which used to take weeks or months can now be done in a matter of days” In total, over 120 Maltese roads were upgraded that same year, all under the watchful eye of Infrastructure Malta. However, it’s not just roads which are being improved. Upgrading of the roads also meant that existing water pipelines, electricity cables and communication ducts can all either be enhanced or extended. And with a commitment of at least 60 new roads being upgraded every year, by extension this can also mean a quantum leap in the quality of the country’s electricity and telecommunications infrastructure. The work continues apace, even in a year as tumultuous as 2020. In the first six months of

this year, Infrastructure Malta distributed more than €10 million to local builders across the country, tasked with carrying out the works in the country’s national development plan. The competition generated by Infrastructure Malta has also meant that many of these firms have had to raise their game and turn from the local sphere to the national.

Partners and Suppliers Understandably, Infrastructure has quickly built a large network of the best construction firms in Malta to ensure that it delivers on its promise for at least 60 road upgrades per year. These include the likes of V&C Contractors

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INFRASTRUCTURE MALTA

“I believe that the creation of Infrastructure Malta was an inflection point in the history of our country’s development” Ltd and T&C Ciappara Construction ltd. More specialised construction work was carried out by the Bifra JV, Philip Agius and Sons Ltd. responsible for trenchwork and excavations - and Green Building Solutions Ltd., which works to ensure that all construction work is as environmentally friendly as possible. Finally, Meinhardt Malta Pvt. Ltd are Infrastructure Malta’s trusted consultant engineers, while Mangion Brothers Ltd. are regularly trusted with its considerable construction materials demands.

Conclusion As Mr. Azzopardi puts it: “I believe that the creation of Infrastructure Malta was an inflection point in the history of our country’s development. It’s become a central part of the Maltese story and we’re really excited about what we can achieve in the future.” Europe’s smallest country may be confined by the shining blue sea on all sides, but now thanks in no small part to Infrastructure Malta, there’s nothing confining its ambitions for the future.

INFRASTRUCTURE MALTA

 +356 2334 1000  info@infrastructuremalta.com @inframalta www.infrastructuremalta.com

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INV

CONTINUING LA PROUD HISTORY

INVAP was the first company in Latin Americ innovative credentials are as strong as a RESEARCH BY

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María Be

VAP

ATIN AMERICA’S OF INNOVATION

ca to be certified by NASA, so its scientific and any that you might find on the continent

ernardita Guschmer BUSINESS EXCELLENCE [ ISSUE 1468 ]

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INVAP

hen we think of the most innovative companies in the world, our mind tends to wander to companies in North America, Europe and Asia. But there’s a world of innovation that exists in the southern hemisphere that we’ve become coded to ignore. Latin America has given the world some of its most enduring innovations, and continues to be a focal point for the world’s most valuable intellectual property. One of the recognized leaders in this realm in Latin America is INVAP (a portmanteau of the Spanish words investigación aplicada, meaning “applied research”). INVAP was the first company in Latin America to be certified by NASA, so its scientific and innovative credentials are as strong as any that you might find on the continent. To date, it remains the

As Mr. Absi tells it: “the seed for INVAP was sown in 1972, when Dr. Conrado Varotto, who had been studying for his doctorate at Stanford, returned to Argentina. He brought ideas that he learned from there back to Argentina to CNEA (Argentina’s Atomic Energy Council).” “It was there, with a group of young colleagues,” continues Mr. Absi, “that he had the idea to form a company to commercially develop some of the scientific ideas which they were working on. The idea at that time wasn’t just to continue research for the sake of research, but to implement the ideas for the greater good of society.” This thinking was the genesis of INVAP, which was founded out of the offices of CNEA in 1976. As Mr. Absi explains, this was an early

“The idea at that time wasn’t just to continue research for the sake of research, but to implement the ideas for the greater good of society.” only company on the continent to work handin-hand with NASA on its space projects. Business Excellence’s Head of Research LATAM María Bernardita Guschmer recently had the pleasure of speaking with Gabriel Cristian Absi, Vice President of INVAP’s Aerospace Division, about the company’s past, its present and its future. What emerges from the discussion with Mr. Absi is the profile of a company which continues to push boundaries in areas such as aerospace, Defence, Security, Ambient and nuclear and carrying the flag for a continent with a proud history in innovation.

Beginnings INVAP’s history has its roots in a brilliant Argentine physicist spending some time conducting research in the United States.

version of what today we might call ‘incubation’ in the startup sense: “The reality is that INVAP was incubated by CNEA. We didn’t use the term ‘incubated’ at the time, but the reality is that that’s what it was. So, being incubated by CNEA, the company was a state-owned enterprise belonging to the province of Rio Negro, whose shares were owned by the state, the government, and of course, CNEA.” Effectively being one of Argentina’s first incubated companies (if not the first), the company maintains some of the governance features we might expect of a state startup. Mr. Absi says: “There are seven directors on the board, two of which are from CNEA, four of which are from the province of Rio Negro and finally, a director who is elected to the

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board by the employees of INVAP, with the same responsibilities and entitlements as the other directors.”

A World Leader in Nuclear and Aerospace The brainpower employed by INVAP meant that it quickly grew into some of the technically challenging areas of scientific development. Mr. Absi says: “INVAP naturally became a company focused on nuclear physics because the laboratory from which it grew had a specialty in that area at CNEA. At first, the company grew through small projects that

CNEA hired it for in nuclear and then quickly moved into two new areas of business.” “One was nuclear medicine, in which it was worked on diagnostics with imagery and the treatment of cancer. The other was an industrial area, principally focused on providing technical design services to the energy sector - nuclear energy, oil and gas.” INVAP is responsible for the design and development of some of the world’s most wellknown nuclear reactors, including PALLAS in the Netherlands and OPAL in Australia. In the 1990s, with nuclear power becoming the subject of some controversy owing to

“INVAP naturally became a company focused on nuclear physics because the laboratory from which it grew had a specialty in that area at CNEA”

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INVAP

“We’re developing a satellite communications platform which, let’s say, is state of the art. We believe that this will be a huge technological advance within just a few years from now, creating a new generation of satellites” tragedies in Chernobyl and elsewhere, the company turned its focus to aerospace. Mr. Absi says: “That’s when CONEA (Argentina’s Space Agency) was formed in conjunction with NASA with the aim of undertaking space missions together..” “From there,” he continues, “we started to work closely with NASA, learning more about satellites and developing some of the bestknown ones today: the SAC-B, the SAC-A, SAC-C and the SAC-D. The SAOCOM was developed as a result of an agreement with Italy for two satellites with the Italian space

agency, the first of which was launched in 2018 and the second, which was launched in August of this year.”

Space Age Technology with High Street Applications When speaking to Mr. Absi, the conversation quickly changes from one topic to another, leaving the listener sometimes wondering if the same company can be involved in so many different spheres. Such is the spirit of innovation at INVAP that one innovation quickly leads to another and the company’s

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original spiriti - to develop applications that improve people’s lives - comes into being. As such, the company’s work in aerospace has led it into communications, security and defense. There’s also a new joint venture project in the works with Turkey. Of this, Mr. Absi says: “we’re developing a satellite communications platform which, let’s say, is state of the art. We believe that this will be a huge technological advance within just a few years from now, creating a new generation of satellites.” Mr. Absi is keen to emphasize the dayto-day benefits brought by all of these innovations: “there are so many!” he says. “For example, with the satellite system we’ve developed for Argentina, we can monitor illegal fishing, which is a huge problem within the country. It can also be used by farmers for more intelligent fertilization and growing. I mean, it’s not always that it’s something you see directly, but it is something that we all benefit from.”

INVAP during the Pandemic With such a remarkable track record in innovation, it shouldn’t come as a surprise to any readers that several Argentine governmental departments turned to INVAP for assistance in responding to the ongoing Covid 19 pandemic. Argentina has been in a state of quarantine for over six months, and at the time of writing, in late October 2020, is one of the world’s most badly affected countries by the disease. Mr. Absi says: “We’ve received many requests, from government and state

“There’s huge demand for our services at INVAP and at some moment, this is all going to bear fruit.”

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INVAP

agencies, to be technical consultants on certain problems. Thankfully, we’ve been able to apply our expertise in some areas to aid them in some areas to make decisions. We’ve also been able to make available some productive capabilities to make machines such as respirators and medical equipment for the benefit of the general population.”

The Future Where else can INVAP go that it hasn’t already been? When a company is literally being hired by NASA for its technical capabilities, you begin to think there’s nothing that can stand in its way. Mr. Absi says: “we’re developing nuclear projects in various countries - in the Netherlands, Algeria, Saudia Arabia, India and Australia - we are very international. And in fact, you’ll see that, in the area of satellite

technology, we’re regarded as one of the top 7 companies in the world,” before adding: “there’s huge demand for our services at INVAP and at some moment, this is all going to bear fruit.” Despite some of the world’s best satellites, nuclear reactors and contributions to nuclear medicine, it says everything about the insatiable spirit of innovation at INVAP that the President of its Aerospace Division believes that it’s still waiting “to bear fruit.”

INVAP

 54 (294) 440 9300  info@invap.com.ar @invapargentina www.invap.com.ar

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MONTREAL’S TRANSFORMATIVE

LIGHT RAIL PROJECT Réseau Express Métropolitain With its narrow, winding alleyways and street signs in French, the city of Montreal is unlike any other in North America. RESEARCH BY

Joseph Philips

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RÉSEAU EXPRESS MÉTROPOLITAIN

ith its narrow, winding alleyways and street signs in French, the city of Montreal is unlike any other in North America. If someone was dropped in the city, they might just as easily guess that they’ve landed in a regional town in France as opposed to the heart of Canada. It is little wonder than that the city has earned itself nicknames such as ‘the paris of North America’ or ‘the city of a thousand steeples’ (endowed on it by none other than Mark Twain). This quaint, regional French vibe doesn’t mean that the city is stuck in a time warp. Montreal also has a vibrant and buzzing side, making it one of Canada’s commercial centres. The addition of a major public transport project - the Réseau Express Métropolitain (REM) light rail network - will add to the city’s credentials as a thriving modern metropolis. Business Excellence decided to take a closer look at this exciting and transformative project currently underway.

Background The city of Montreal already had a metro system for half a century when a light rail system was first mooted at the beginning of the last decade. In 2015, the provincial government announced a $7.4 billion fund which would be spent on infrastructure over the course of the following decade. The

“In 2015, the provincial government announced a $7.4 billion fund which would be spent on infrastructure over the course of the following decade”

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RÉSEAU EXPRESS MÉTROPOLITAIN

“The REM light rail network will integrate with the airport and the existing metro”

centrepiece of this investment would be a light rail system in the heart of Montreal what’s now become known as REM. The REM is expected to become operational within the next year and a half and when complete, will provide high-frequency lightrail transport services on a regional level. The centre of Montreal will become connected to the city’s suburbs like never before, linking the city’s central business district with its international airport and taking thousands of cars off the historic city’s roads every day of the week. But most importantly, the REM light rail network will integrate with the airport and the

existing metro, allowing arrivals at Montreal International Airport to reach the city centre within 25 minutes. Thanks to REM, a light rail train will arrive every two and a half minutes in downtown Montreal, giving passengers all of the benefits that they expect from a modern transport system including safety, free wifi, heating and air conditioning. Once delivered as it is presently envisioned, the REM will include 26 stations spread across 67 kilometres in the greater Montreal metropolitan area. Including 15 stations towards Deux-Montagnes, 4 stations towards the South Shore, 4 stations towards

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Saint-Anne-De-Bellevue and 2 stations the airport. To put this in perspective of the impact it should make on the city - the entire metro network currently has 71 kilometres of track. The first tracks will be operational in 2021, with further tracks to become operational between 2022 and 2023. There’s even potential for the rail to extend into the greater province in the years ahead.

Social and Economic Contribution In total, it is estimated that the REM will employ some 34,000 people during construction, making it one of the biggest employers in the

region, for a brief period, at least. Its cost, of $6.5 billion, will almost all find its way into the local economy, meaning it adds significant value to an already confident economic region. When complete, despite being fully automated, the light rail system will bring an estimated 1,000 new permanent jobs to Montreal. The project will also run through the western suburbs of Montreal - an area which has long been under-served by public transport. New residential construction is planned to open all along this part of the line when the project is completed, breathing new life into a part

“In total, it is estimated that the REM will employ some 34,000 people during construction, making it one of the biggest employers in the region”

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RÉSEAU EXPRESS MÉTROPOLITAIN

of the city which will welcome the new impetus. This is not to overlook the value which the transport will generate for housing developments already located near or along the light rail network.

behind REM believes that it will lead to a reduction of 680,000 tonnes of greenhouse gases (GHGs) in its first 25 years REM will offset of operation. And although these gases by the construction phase will planting an extra generate an excess of GHGs, 250,000 trees REM will offset these gases by through the greater Sustainable Credentials planting an extra 250,000 trees Montreal region. In The addition of light rail networks through the greater Montreal addition, replanting to the transport infrastructure of region. In addition, replanting of those trees cities around the world has been of those trees which were felled which were felled a welcome one: Light rail has during construction will occur during construction been shown to one of the most at a rate of 110%. will occur at a environmentally-friendly and Even more attention to rate of 110%. efficient modes of transport and environmental detail can be REM promises to be no different. found in how REM promotes As 100% electric and automated, agricultural land, setting up an its arrival should spell the end for thousands agricultural trust responsible for the Riveof polluting car journeys every day, with a total Sud Terminal station, together with a future daily ridership of 190,000 people projected. metropolitan agricultural park. This will This is one of the reasons why the team aim to limit urban sprawl in the area. And

Did you know?

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Partner for innovating railway solutions ENGIE Transport Canada

CUSTOMER SPOTLIGHT ENGIE is a global reference in low-carbon energy and services. Our purpose (“raison d’être”) is to act to accelerate the transition towards a carbon-neutral world, through reduced energy consumption and more environmentallyfriendly solutions, reconciling economic performance with a positive impact on people and the planet. We rely on our key businesses (gas, renewable energy, services) to offer competitive solutions to our customers. With our 170,000 employees, our customers, partners and stakeholders, we are a community of Imaginative Builders, committed every day to more harmonious progress. Turnover in 2019: 60.1 billion Euros. The Group is listed on the Paris and Brussels stock exchanges (ENGI) and is represented in the main financial indices (CAC 40, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe) and non-financial indices (DJSI World, DJSI Europe and Euronext Vigeo Eiris - World 120, Eurozone 120, Europe 120, France 20, CAC 40 Governance). www.engie.com ENGIE NORTH AMERICA ENGIE North America Inc. offers a range of capabilities in the United States and Canada to help customers decarbonize,

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decentralize and digitalize their operations. These include comprehensive services to help customers run their facilities more efficiently and optimize energy and other resource use and expense; clean power generation; energy storage; and retail energy supply that includes renewable, demand response, and on-bill financing options. Nearly 100% of the company’s power generation portfolio is low carbon or renewable. For more information on ENGIE North America, please visit our LinkedIn page or Twitter feed, and www.engie-na.com ETC’S ACTIVITIES ON REM In July 2019, ENGIE Transport CM Canada Inc. (ETC) was awarded by NouvLR for the Engineering, Procurement, Construction, Test & Commissioning of the new Overhead Catenary System (OCS) on the REM Project in Montreal. ENGIE Transport CM Canada Inc. is developing for the first time in Canada 140km of flexible, rigid and retractable catenary along with 2.000 poles and 4.500 cantilevers. ENGIE’s multicultural workforce is getting involved on this first project in Canada aiming to connect people and looking to participate in the sustainable development of Railway Systems in Canada and the United States of America.

RÉSEAU EXPRESS MÉTROPOLITAIN

“Demanding mobility for all is something I have never seen at this scale with as much motivation and resources”

underpasses have been developed to ensure that animals can cross from one side of the railway to the other in complete safety.

Universal Accessability The interior and exterior of the metro was conceived and designed by Alstom. A team headed by Xavier Allard, director department of design at Alstom highlights the deeply human aspect that is present in the design and development of the metro. “Demanding mobility for all is something I have never

seen at this scale with as much motivation and resources” said Xavier. Understanding that success depends on dialogue his team engaged key member of all segments of the society including key members of associations of people with functional limitations including motor, visual, auditory and intellectual limitation. These lead to an understanding of the true needs of people in these segments and an understanding that achieving universal access will enhance the experience of every one including pregnant

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thalesgroup.com

billion

- ©Getty Images

passengers each year benefit from Thales technologies

Search: Thalesgroup

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women, children in strollers, elderly and even people with temporary limitations. This strategy is also implemented in the design and the development of the stations as well.

Partners and Suppliers REM has involved a number of companies, both local and international, each bringing their own technical expertise. Foremost among these was the construction team at NouvLR, a consortium for CDPQ Infra. The provision of rolling stock and systems

and operation and maintenance (RSSOM) concession was granted to Groupe pour la Mobilité des Montréalais (PMM), itself a joint venture between Alstom Transport Canada Inc. and SNC-Lavalin O&M Inc. Engie North America was granted the contract for Engineering, Procurement, Construction, Test & Commissioning of the new Overhead Catenary System (OCS) on the REM Project in Montreal – a central part of the technology behind REM. The catenary system is the overhead cable network that feeds the electric trains with a direct 1500

“ Light rail has been shown to one of the most environmentally-friendly and efficient modes of transport, and REM promises to be no different.”

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inspired Your weekly digest of business news and views

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“Even more attention to environmental detail can be found in how REM promotes agricultural land, setting up an agricultural trust responsible for the Rive-Sud Terminal station”

V current and ensure that it operates stably and safely at all times. Elsewhere, Geophysics GPR International Inc has been hired to monitor vibration during construction, much of which will be caused by the drilling of the Robbins Company, as it bores through till, mixed face conditions and limestone beneath the city of Montreal. Further monitoring will be provided by Solmatech inc., a local Canadian firm which has over 30 highly skilled engineers working on the construction phase of REM.

In terms of materials, Groupe Carreaux Céragrès Inc is providing tiles, Guardian Glass Middle East & Africa will provide the glass, Atlantic Industries Limited has provided about 370 sections of Corrugated Steel Pipe, Canadian Precast/Prestressed Concrete Institute (CPCI) has provided precast concrete components. This work in tandem with welders provided by Rail Cantech Ltd., Geroquip’s drilling equipment, TBC Construction Inc., responsible for the aboveground electricity works at several of REM’s stations, and Reinforced Earth Company Ltd., in charge of wall designs and materials supply.

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“Put this way, the REM would have been a fitting way for Mark Twain to mark his arrival in the city of a thousand spires.”

A Transport Project Befitting Quebec’s Metropolis Many of the urban transport projects which Business Excellence has covered have long needed the relief that light rail brings to the congestion in their city. Montreal is not one of those cities: it has its congestion, of course, but nothing like that of the big cities in some of the developing countries that have been looked at within these pages. That is no bad thing: It’s better to invest in infrastructure before the need arises, rather than after. The arrival of REM will make a welcome contribution to Montreal’s transport infrastructure: It has been planned to ensure that arrivals to Montreal Airport will enjoy prime views of this historic city, while arriving in the most technologically sophisticated and environmentally friendly mode of urban transport possible. Put this way, the REM would have been a fitting way for Mark Twain to mark his arrival in the city of a thousand spires.

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 1 833 736-4636  info@rem.info @REMgrandmtl www.rem.info

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Nucleoeléctri

SUSTAINABLE ENER

When the greatest achievements o rarely does nuclear energ RESEARCH BY

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María Be

ica Argentina

RGY GUARANTEED!

of the 20th century are mentioned, gy enter the conversation

ernardita Guschmer BUSINESS EXCELLENCE [ ISSUE 1468 ]

hen the greatest achievements of the 20th century are mentioned, rarely does nuclear energy enter the conversation. The term nuclear has taken on negative connotations among the general public, who in turn have overlooked the benefits of nuclear power for the long-term good of the plant. Managed properly, nuclear power offers one of the most sustainable forms of power available, explaining why countries like China, the UK and Turkey are all now investing in it.

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Approximately 5% of Argentina’s electricity is generated by nuclear power. Nucleoeléctrica Argentina S.A. is the company which manages Argentina’s three nuclear power reactors: Atucha I, Atucha II and Embalse and is responsible for the marketing and maintenance of the country’s nuclear power reactors. The company is also responsible for the new nuclear power plant projects to be built in the country. Business Excellence recently spoke with Isidro Baschar, Member of the Board at Nucleoeléctrica Argentina. Mr. Isidro Baschar

NUCLEOELÉCTRICA ARGENTINA

“Approximately 5% of Argentina’s electricity is generated by nuclear power”

talked us through the company in some considerable detail, outlining the role it plays in energy security in Argentina. At a time when the world is looking to transition away from fossil fuels for energy generation, Mr. Isidro Baschar makes a strong case for the role that nuclear energy can play in this transition.

Backstory Nucleoeléctrica Argentina was founded in 1994 at a time when the government of the day sought to restructure the country’s nuclear

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industry, all under the umbrella of the National Atomic Energy Commission (“Comisión Nacional de Energía Atómica” or “CNEA”). 12 years later, in 2006, Argentina’s president of the day, Néstor Kirchner, announced a plan which would be a boon for Nucleoeléctrica Argentina. Mr. Baschar explains: “President Kircher decided to announce the relaunch of the country’s nuclear plan, and among its main projects, was to complete Atucha II, whose development had stopped in 1994. The commissioning works began in 2011, after the completion of the assembly works and the

project was completed in June 2014, when the project began its first operations.” The completion of Atucha II was part of a more ambitious nuclear program, which included other projects such as the development of an Argentine-designed power reactor, CAREM. Of course, Nucleoeléctrica Argentina already owned the plants of Atucha I, Atucha II and Embalse. As Mr. Baschar tells us, the Atucha I “Presidente Juan Domingo Perón” project started in June 1968 and connected to the national grid in March 1974, before providing power in June of that year. For its part, construction on Embalse began in May

“In 2015, Nucleoeléctrica Argentina began the Life Extension Project for these reactors, which finished successfully in 2019”

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NUCLEOELÉCTRICA ARGENTINA

generation. Mr. Baschar says: “at the end of 2020, as a result of the adverse context brought by Covid-19, nuclear energy reached Nucleoeléctrica a record for electricity generation, Argentina’s 1763 generating 7,947 MW/h in the MW capacity month of September.” represents 5% of He emphasizes what this installed energy means for the longer term on Argentina’s stability of the country’s energy: national grid “This shows that the nuclear and 6-8% of the plants don’t depend on seasonal country’s national or climatic factors to function, electricity and are key in the fight against generation. climate change, as they neither generate harmful gases nor contribute to the greenhouse effect. For example, in September 2020, the A Central Role in month just mentioned, the plants saved over Argentina’s Energy Outlook 5 million tonnes of CO2.” As mentioned at the outset, Nucleoeléctrica It’s a compelling argument, particularly at Argentina’s 1763 MW capacity represents 5% a time when lower oil and gas prices could of installed energy on Argentina’s national grid incentivize their usage by governments and 6-8% of the country’s national electricity 1974 and began its commercial operations in January 1984.” Mr. Baschar says: “In 2015, Nucleoeléctrica Argentina began the Life Extension Project for these reactors, which finished successfully in 2019. It ensures that these plants could now begin 25 more years of providing power to another generation of Argentines.” Furthermore, the length of the commission - as well as the clean nature of the energy - underlines the potential of nuclear power in a fossil-free future.

Did you know?

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“Since the Nuclear Plan in 2010, Argentina has been negotiating the possible construction of future nuclear plants” looking to make cuts. He continues: “All of these factors mean that the generation of nuclear power is a fundamental pillar to ensure that we achieve the UN’s 17 sustainability goals (SDGs), particularly in the areas of accessible non-contaminating energy and the promotion of sustainable industry.”

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Continuing Projects Perhaps because of the longevity of the existing reactors, or as a result of the sustainability outlined in the previous section, an expansion of Argentina’s nuclear energy capacity is at the planning state. As Mr. Baschar says: “Since the Nuclear Plan in 2010, Argentina has been

NUCLEOELÉCTRICA ARGENTINA

negotiating the possible construction of future nuclear plants, officially sanctioned by the so-called Nuclear Law of Argentina.” He continues: “This in turn has been supported by the establishment of a Comprehensive Strategic Association and the marking of a Framework Agreement for Economic and Investment Cooperation between Argentina and China. These agreements include in their brief cooperation in the area of electricity and the construction of nuclear reactors on Argentine territory.”

The Impact of Covid-19 Understandably, given everything already outlined, from the outset of the Covid-19

outbreak, nuclear energy was classified as a central activity in Argentina. Thus, Nucleoeléctrica Argentina implemented strict prevention measures to protect the health of all its workers, while guaranteeing the maintenance and safe operation of nuclear power plants and the continuity of energy production and commercialization. Mr. Baschar says: “For example, we set up a working group dedicated to the analysis and monitoring of protection measures. This has involved the development of a health and hygiene protocol that established, among other measures, the readjustment of workstations and common areas, along with

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NUCLEOELÉCTRICA ARGENTINA

increasing their cleaning and disinfection, using technology to ensure compliance and improve safety.” He continues: As an additional measure, all workers who enter the plants are routinely tested and must complete a roadmap in which they leave a record of the places they were and people with whom they had close contact on the day. We also have put in place measures for suppliers and contractors that enter the facilities, among which is the preparation of a roadmap and an affidavit of health before entering.

Bringing a More Sustainable Future The world’s 443 existing nuclear power stations are situated in just 31 countries and yet, produce 10% of the world’s electricity. In Latin America, only Argentina, Brazil and Mexico possess plants. Of this, Mr. Baschar says: “But Argentina was a pioneer in the peaceful usage of nuclear energy, positioning ourselves as an international supplier of nuclear technology as well as ensuring energy security for Argentina.” “Together with the CNEA and other strategic partners, Argentina is now a leader in the research, design and construction of nuclear reactors and plans to make the quantum leap to consolidate itself as a leader in this industry.” With over half a century of clean and consistent electricity being provided by its reactors, Argentina and Nucleoeléctrica Argentina are well positioned to assume that leadership role.

NUCLEOELÉCTRICA ARGENTINA

 +54 11 5129 3400  info@na-sa.com.ar @Nucleoelectrica www.na-sa.com.ar

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REVISITING TANZANIA’S GOLD STAR Shanta Gold Given that over half of the country’s export income comes from gold, the success of Shanta Gold is inextricably tied with the fortunes of Tanzania RESEARCH BY

Eurides Lopes

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Eric Zurrin CEO

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SHANTA GOLD

he recently re-elected president of Tanzania, John Magufuli stated in November 2020 that his government predicts economic growth of 8% for the country over the next five years. This isn’t unreasonable given that the country’s GDP has grown by a CAGR of around 7% over the five years of Mr. Magufuli’s first mandate. Given that over half of the country’s export income comes from gold, the success of Shanta Gold is inextricably tied with the fortunes of Tanzania. When Business Excellence last visited Shanta Gold, in 2018, it was celebrating results for 2017 which had just been released, showing the company’s best year on record both in terms of gold production and financial results. Both 2018 and 2019 showed improvement on the figures from 2017, and the signs are that 2020 could be

owned by Barrick Gold through a subsidiary Acacia Mining. As soon as any mention of the acquisition is made, Mr. Zurrin’s eyes light up with enthusiasm. It’s clear from his reaction that the analysts at Liberium Capital aren’t the only ones passionate about the project’s prospects. He says: “The oversubscription for the share issue means that we were able to buy out Barrick Gold, which was part of the longterm strategy for Shanta. We’ve also been able to institutionalize the share register. And what we’re planning on doing with these funds is to invest in the West Kenya project. We were going to do that anyway, but the success of this capital raise lets us do this much, much faster.” He continues: “The way I think of thinking

“The oversubscription for the share issue means that we were able to buy out Barrick Gold, which was part of the long-term strategy for Shanta” even stronger again, despite the backdrop of the ongoing global Covid-19 pandemic. In late 2020, the company is coming straight from a highly over-subscribed share issue where it managed to raise just over £32 million for its latest project in west Kenya, and a bullish update from Liberium Capital which predicted that the company’s share price could double by the end of 2021. What better time to speak with the company’s CEO, Eric Zurrin about the company’s recent strategic moves and the changes he and his team have implemented to inspire such investor confidence.

Growth Mining The big story at Shanta since our last feature on the company has undoubtedly been its acquisition of the West Kenya mine, previously

of this is ‘okay, we’ve acquired this asset at less than $100 per ounce, but let’s show everyone that its true value is closer to $200 or $300 per ounce.’ We believe that it’s worth a lot more than what we paid and the only way to show people this is to invest in it. West Kenya is the highest grade of 1 million ounce-plus deposit in Africa. It’s 1.2 million ounces and 1.6 grammes per tonne. That is an eye-catching grade and it’s been heavily de-risked by Acacia (the previous owners of the mine) who invested $64 million in it. And we believe that it has just an incredible amount of potential.” Mr. Zurrin justifies this enthusiasm further by pointing to the example of Barrick Gold - the world’s largest gold producer by market capitalization - in the region: “Look at Barrick Gold in Tanzania. Recently, Barrick

BUSINESS EXCELLENCE [ ISSUE 1468 ]

Wealth Unearthed When you unearth gold, you build stronger nations

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AEL Mining Services – proudly supporting Shanta Gold to Unearth Wealth AEL Tanzania Dar es Salaam Tel: +255 222 77 1055 www.aelminingservices.com

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SHANTA GOLD

“We consistently generate profits. Not many companies in this industry can say that. They can only dream about it. Over the last 8 years, we’ve generated around a billion dollars of gold sales.” announced 10 new exploration licences that they’re investing in. This is in the same belt. Don’t forget that, it’s on the Kenyan side of the border but that these are highly attractive areas for mineral endowment and that’s what you want to start with - it always comes down to asset quality.” In the midst of all this, it can be easy to forget that Shanta Gold is now heading up three projects, with a third at Singida in Tanzania. Of this, Mr. Zurrin says: “At Singida, we’re also looking to begin construction, so that is very

meaningful to our story, because in 2022, it should mean that we’ll be producing 220,000 ounces. All this is going on at the same time as Luika, our main asset. I think we’ve now drilled 25,000 metres. And there’s a lot to look forward to from that asset as well.”

Compelling Results Of course, acquisitions are just vanity metrics unless they generate value for the company. Given his long history in investment banking, Mr. Zurrin knows this better than most, and

BUSINESS EXCELLENCE [ ISSUE 1468 ]

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he’s also keen to emphasize the financial performance of the company he heads up: “We consistently generate profits. Not many companies in this industry can say that. They can only dream about it. Over the last 8 years, we’ve generated around a billion dollars of gold sales.” This translates into some very healthy results: Free cash flow, which was $14.1 million in 2019, is set to reach $38.8 million in 2020. And EBITDA, which was $47.7 million last year, is expected to hit $60.8 million for financial year 2020. Recall, this is at a time when most companies’ financial results have taken a hit, owing to the Coronavirus pandemic. Mr. Zurrin also adds: “don’t forget too that our reserves have 653,000 ounces of gold - the highest that Shanta has ever recorded in its history.”

Sustainability Of sustainability, Mr. Zurrin says: “There are three ways that we think about mining in Tanzania and Kenya. And it’s really important that we take a long-term view. At the end of

SHANTA GOLD

the day, we are a business that just happens to be in mining, so our shareholders have to benefit. But the host country and communities also have to benefit. We really feel it’s that tripartite that drives our approach, which should be sustainable for all three of those stakeholders.” “So, this is important as we’re not thinking about short-term solutions at any of our mines. This means, for example, that we support

employment. Farming has also increased exponentially over the past three years thanks to Shanta Gold initiatives, which have sought to upskill farmers in modern farming methods. Around 40% of our employment also comes from the villages surrounding the mines.” “Education is also a big one for us. I’m a father of three young children and I see the direct benefits of education, so we’ve set up a program where UK teachers come down

“We’re not thinking about short-term solutions at any of our mines. This means, for example, that we support employment. Farming has also increased exponentially over the past three years thanks to Shanta Gold initiatives”

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SHANTA GOLD

“West Kenya is potentially a game changer for Shanta” to Tanzania to teach the local kids. This has already passed 1,500 days of teaching and it’s still growing. We’re also strongly involved in health, bringing international medical experts to some of the remotest parts of Tanzania to provide medical support.”

A Precious Metal, A Bright Future If the reader hadn’t already guessed it, Mr. Zurrin could hardly be any more enthusiastic about his company’s prospects, noting: “West Kenya is potentially a game changer for Shanta. Look at the grade, look at the resources and the fact that we paid twenty cents on the dollar to take it over.” And although the enthusiasm is infectious, it’s clear that it’s not hubris. The raw numbers are there to back everything up, from the revenue to the sustainability figures. And what’s good news for Shanta Gold is good news for Tanzania, which will partly rely on gold production to ensure it achieves that 8% growth it’s planning. For Zurrin, this is no bad thing: “We’re supportive of the president’s 2025 growth plan. We’ve been in Tanzania for a third of the time it’s been an independent country. We have a great relationship with the government and the communities and we’re really happy operating here.”

SHANTA GOLD

 +255 22 2925148-50  info@shantagold.com @shanta_gold www.shantagold.com

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A NEW ERA FOR MOZAMBIQUE EDM The National Electrification Strategy is nothing if not ambitious. In fact, it could be the single most transformative event since the country achieved its independence from Portugal in 1975 RESEARCH BY

Eurides Lopes

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EDM

hen Business Excellence last visited Electricidade de Moçambique (EDM), the focus of the interview was the changes that Mozambique was undergoing. The company had just received financing from the World Bank and the European Investment Bank to the tune of $200 million and plans were being put in place to improve the energy links that existed between Mozambique and neighbouring countries like South Africa. Five years later and so much has changed. In 2018, the government launched the National Electrification Strategy under the ProEnergia program, with the goal of reaching universal energy access in Mozambique by 2030. Only about 40% of Mozambique’s 30 million strong population have access to the national grid

spectrum of electricity products and services in Mozambique. EDM is the company responsible for generating, transmitting, and distributing electricity to the people and business in Mozambique. Its operation includes an electricity generation capacity of more than 2600MW. Its transmission network consists of more than 5,000 kilometers of high voltage lines, and managed with staff strength of 3500 employees EDM is responsible also responsible for the export energy to the SADC region and importation of energy when necessary. It is responsible for operating and managing the National Electricity Transmission Network and on behalf of the Government of Mozambique

“Given the scale of the electrification project underway in Mozambique - with estimated investments in excess of $1 billion required by 2024, alone - this is more of a nexus of ongoing projects rather than one project in itself” or off-grid/mini-grid systems. As such, the project aims to bring electricity to around 18 million people. The National Electrification Strategy is nothing if not ambitious, then. In fact, it could be the single most transformative event since the country achieved its independence from Portugal in 1975 - opening up huge opportunities in Mozambique’s regions that simply couldn’t exist until now. Business Excellence didn’t want to miss the chance to call back on EDM and check on progress on this once in a generation project.

Reintroduction The corporation EDM was created in 1977 with the mandate that covers the entire

A Nexus of Projects Given the scale of the electrification project underway in Mozambique - with estimated investments in excess of $1 billion required by 2024, alone - this is more of a nexus of ongoing projects rather than one project in itself. Every one of the country’s provinces is already seeing projects being planned and constructed - nobody is being left behind. Some of the most notable projects are already underway in Cabo Delgado, Massangena, Chigubo and Nampula. If there are benefits to electrifying well after many other countries, it’s that Mozambique has an opportunity to learn from their experiences of other and implement state of the art technology across its electrical grid.

BUSINESS EXCELLENCE [ ISSUE 1468 ]

In Mozambique for over 24 years, designing a smarter future for a better life. We develop and deliver integrated solutions in the fields of energy, mobility and environment. www.efacec.com

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Partner with EDM for the last 40 years, within Energy Solutions, for Transmission, Distribution, Renewables and Hydro Projects. NORCONSULT MOZAMBIQUE LDA. Tel: +258 21 48 50 58 | Mobile: +258 823135970 Email: firmapost.Mozambique@norconsult.com

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mozambique.norconsult.com Postal address: Caixa Postal 2722, Maputo, Mozambique Visiting address: Avenida Armando Tivane 1853, Sommerschield, Maputo

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www.bus-ex.com

EDM

“Other exciting projects include the first Combined Cycle Gas Turbine (CCGT) power plant in Southern Africa. ” That has led to a significant investment in renewable energy projects such as the Metoro Solar Power Plant in the Cabo Delgado province and the Mocuba Solar Power Plant in the Zambesia province - both 40MW realized through PPP are signs of how Mozambique will be taking lead in the renewable energy as well as becoming an energy hub across the region. Other exciting projects include the first Combined Cycle Gas Turbine (CCGT) power plant in Southern Africa. This is a 400MW

gas-to-power plant with an associated 400kV transmission line. This is the Temane-Maputo power plant and line consisting of about 600km, the transmission interconnections between Mozambique and Malawi; Mozambique and Zambia, and Mozambique and Tanzania. There is also the construction of the Caia–Nacala 400kV transmission line. There are other less popular equally as important and transformative projects including the interconnection line between Metoro and Palma which will significantly

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improve the supply and flow of electricity between two of the most underserved population centres in the north of the country. Such connector lines are a central component of the all-inclusive electrification strategy.

A Change of Culture In order to reach its ambitious targets, EDM has undergone a change of culture itself. Aside from beginning its first PPP investments, it has also begun sponsoring programs such as Proler (renewable energy auction system) and GET FIT (tariff viability gap funding) to support private companies contributing to

their goals. Elsewhere, it works closely with FUNAE (Mozambique’s Energy Fund) to encourage the growth of off-grid electricity in the country. This change of culture was one of the driving factors behind the organizational changes that EDM recently underwent. A new board of directors was put in place at EDM in July 2020, managing with a more organic structure than before. The new objective of the board has been clearly set, and the organization’s less rigid structure has been put in place to achieve it - full electrification of the country within a decade.

“The new objective of the board has been clearly set, and the organization’s less rigid structure has been put in place to achieve it - full electrification of the country within a decade.”

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EDM

Partners and Suppliers

Moz Energy LDA for a 20MW solar power project in Pemba, in To bring the nexus of projects Mozambique’s northern region. discussed above to fruition, EDM This is just the first of a few has brought together a nexus of Efacec will be projects totalling 90MW that partners and suppliers. Neoen is responsible for MBHE will deliver as part of an the general contractor behind the engineering, MOU signed with EDM. the Metoro Solar Power Plant, procurement As stated at the outset, the which will generate 40MW of and construction less glamorous infrastructure energy every year for its 25-year (EPC) and projects will prove just as life. Efacec will be responsible for operations and important to deliver EDM’s the engineering, procurement maintenance ambitions. SETH has been and construction (EPC) and (O&M) for a contracted for the rehabilitation operations and maintenance similar project of the distribution networks (O&M) for a similar project in in the same of Maputo and Matola - a the same region - this time region - this time significant undertaking, which delivering 68MW - which is delivering 68MW begins in the first half of 2021. nearing completion. - which is nearing Other partners and suppliers These are to mention just completion. include consulting firms like two of the many renewable Norconsult, Consultec and WSP projects on the horizon for Environmental. It also maintains EDM. Elsewhere, MBHE recently close links with French energy giant, TOTAL, signed a Joint Development Agreement (JDA) itself on a journey to decarbonize its with Electricidade de Moçambique (EDM) and

Did you know?

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“The goal includes expanding from the current 30% access to 100% universal accessibility across the country by making 450,000 new connections per year for the next 10 years. ”

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EDM

energy output, thus being a useful ally for Mozambique on the journey ahead.

The Future Mozambique’s resilience and drive for economic transformation has been witnessed across board. Mozambique is blessed with considerable mineral and gas reserves, vast arable land, extensive coastline and harbours, as well as transport and most importantly a beautiful people and culture. EDM understands its role as the body tasked with the responsibility of lighting the path for an inclusive socio-economic transformation of Mozambique. To this end EDM is working with the Mozambican government on policies and reform as well working with several private stakeholders to become a smart utility whose services and products exist in every household, all corporations and enterprises across all of Mozambique by 2030. The goal includes expanding from the

current 30% access to 100% universal accessibility across the country by making 450,000 new connections per year for the next 10 years. Another important feature of EDM’s future is transforming Mozambique into a regional energy actor in southern Africa and lastly achieving gender equality in professional and leadership participation. To achieve this EDM plans to continue to work with both its partners in Southern Africa Power Pool (SAPP) and internationally as it continues to work towards energy efficiency and energy security for the people of Mozambique. EDM

 +258 21 359600  info@edm.co.mz www.edm.co.mz

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Port of A

EUROPE’S GATEW

Business Excellence has profiled many port authorities ove close to what the coronavirus pand RESEARCH BY

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Algeciras

WAY TO AFRICA

er the years, but perhaps none during a climate that comes demic has brought to this industry

ernando Ruiz BUSINESS EXCELLENCE [ ISSUE 1468 ]

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ew episodes have struck home the importance of ports quite like the ongoing coronavirus pandemic. Even as businesses of all manner have closed shop because of government regulation, certain organizations, among them ports, have remained open throughout - underlining their importance to the survival of economies. One such port is the Port of Algeciras in the Bay of Gibraltar - Europe’s closest port to Africa. Business Excellence has profiled many port authorities over the years, but perhaps

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none during a climate that comes close to what the coronavirus pandemic has brought to this industry. For this, and a number of other reasons, the Algeciras Port Authority (APBA) is a fascinating subject matter. Furthermore, its president, Gerardo Landaluce, was himself infected by the virus back in March of this year. Thankfully, he made a full recovery and ABPA has continued its operations largely unhindered. So, if anyone knows that the show must go on, it is the ABPA.

PORT OF ALGECIRAS

Overview

“Originally a Roman settlement, the port had to be rebuilt by the Moors in 733 after it was destroyed by German barbarians and vandals.”

As is befitting a port with its location, Algeciras has an extremely colourful history. Originally a Roman settlement, it had to be rebuilt by the Moors in 733 after it was destroyed by German barbarians and vandals. It is widely recognized as the first port built by the Moors in Europe and provided a springboard into Iberia, where they remained for several hundred years. The name given to the port ‘Green Island’ is still used by its Spanish owners today. Thankfully, Algeciras is now a centre of

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Global Solutions, Local Knowledge Global leaders in marine energy supply, storage and services.

peninsulapetroleum.com

PENINSULA PETROLEUM

Autoridad Portuaria de la Bahia de Algeciras (APBA) Peninsula was established in Gibraltar in 1996 and is a leading global marine service, storage and supply business. Due to its origins and continued presence in the Strait, Peninsula has built a strong relationship with Algeciras Port which has helped position the Bay as a stalwart for vessels entering or leaving the Mediterranean. Peninsula currently holds the largest storage position in Algeciras Port making it a fully integrated part of its operation. Algeciras is Spain’s busiest port and a key transhipment hub for the Iberian hinterland. Its strategic position encouraged Peninsula to expand into the Algeciras market in 2013 where it quickly grew into a leading physical supplier. Paired with its global network, Algeciras has enabled Peninsula to offer the best loading options and barge fleet in the area as well as quality supply flexibility. Active cooperation between different players in the Bay has led to the development of an ecosystem of operators and supply options. Together they have created a world class hub which collectively benefits from developments made by all the individual parties. Recently, Peninsula has introduced a series of upgrades to its fleet including a new build 8,000 dwt supply vessel, and the largest dedicated marine fuel shuttle tanker in the market. These constant upgrades support Peninsula’s Algeciras operation as an integral marine fuel blending, storage and distribution hub servicing key locations such as Barcelona, Malta and Las Palmas. It also helps develop and evolve the Bay area making it a very attractive hub in the Mediterranean. As Peninsula looks beyond bunkering to further develop its services, it has bolstered its physical storage, shipping capabilities and quality control. The company has been implementing a long-term business strategy to develop its offering to meet ever changing client and industry demands. All of this has been done in line with the company’s conservative risk management strategy which has put Peninsula in a very strong position to continue

to integrate and offer smart solutions. Peninsula saw the IMO 2020 low sulphur marine fuel cap as an opportunity, rather than a hurdle, to highlight its exceptional supply chain platform and offer customers comprehensive solutions across multiple locations. For the last year, Peninsula has been successfully supplying VLSFO in Europe, the Americas and Asia to its customer base. Peninsula’s focus on the importance of supply chain control and logistics has seen the group increase its strategic storage positions globally, which today includes almost one million cubic meters of terminal capacity worldwide. Owner and CEO John A. Bassadone said, “The Bay will always take pride of place in Peninsula’s history. Not only is it Peninsula’s original home, it is also mine. Having a strong relationship with the Port of Algeciras has allowed us to create one of the most engaging marine fuel hubs in the world. It is testament to the ports and the operators in the area that Algeciras is best in class when it comes to marine fuel supply and services.” Peninsula’s vision is to lead the marine energy’s transition to a sustainable future. It has already navigated many industry milestones and tailored its strategic direction accordingly to continue its journey of growth to become the leading marine service, storage and supply business globally. Peninsula is in a unique position to proactively identify the signs of change in the industry and the economy and quickly implement pioneering solutions. Bassadone concludes: “We are incredibly fortunate to have the facilities and structure of Algeciras Port on our doorstep and we look forward to continuing our relationship with the Port Authorities to ensure the continued success and development of the Bay.”

info@peninsulapetroleum.com www.peninsulapetroleum.com

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MIDWAY TECHNOLOGIES

Specialists in improving the security of your business Security Breaches caused by phishing emails or ransomware is one of the main reasons why a company’s reputation or operation can drastically decrease. In these times of intensive teleworking, the risk of suffering security threats increases due to the increase in the management burden of information systems to respond to these new needs. The “New Normal” we live in has made it necessary for employees to work from home/remotely and this present new risk to your network infrastructure. Outside the more secure company network, the employees are now the ones who are directly exposed to phishing attacks that can jeopardize the security of your information systems due to the lack of updating and supervision of said systems.

Conseguimos que las

To minimize these risks, it is nowempresas more than evereficientes, sean más productivas seguras important to have full access to the securityy status Ofrecemosand serviciosensure IT adaptados siempre a of all the computers in the company tus necesidades. Estudiaremos tu proyecto ayudándote en todo momento a tomar la elección that they can be managed and updated through a correcta. simple Internet connection without the need for VPN tunnels that only affects employee experience. www.midway.tech

At Midway Technologies we are specialists in improving the security of your business. We deploy technologies such as Azure Sentinel, Defender, Azure Information Protection, Conditional Access, Intune, Co-Management or Autopilot, among others to increase the level of security for your teams and employees as if they were connected in the office and with a simple Internet connection. www.midway.tech

MIDWAY TECHNOLOGIES

Helping the Port of Algeciras in its digital transformation process At Midway Technologies, we are helping the Port of Algeciras in its digital transformation process. Our job is to advise and execute the project. We updated their current email infrastructure to an online model, we migrated their applications and services from Microsoft SharePoint 2013 to Microsoft SharePoint Online. This change will allow the Bahía de Algeciras Port Authority to update its systems, better adapt to the new needs for integration with external systems, to make costs more flexible and, of course, to have a more collaborative environment where it can execute its daily work.

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Conseguimos que las

Midway Technologies carries out empresas its function witheficientes, sean más productivas y seguras focus on high quality, professionalism and rigor, using Ofrecemos servicios IT adaptados siempre a the most modern technologies, always focusing on tus necesidades. Estudiaremos tu proyecto ayudándote en todo momento a tomar la elección operational excellence and full customer satisfaction. correcta. The sectors in which Midway Technologies works requires greater intensity very high levels of innovation and quality, which we continually meet based on our continuous commitment to technological evolution and the development of our human resources capacity. www.midway.tech www.midway.tech

PORT OF ALGECIRAS

trade and prosperity for the Iberian peninsula. In 2019, it handled a total of 5.1 million TEUs, a new record for the port. Of these figures, Mr. Landaluce says: “Our total throughput was 109.4 million tonnes. In 2019, our imports and exports of containers grew by 14% and 8% respectively.” The annual total also includes the milestone of 10 million tonnes of throughput in May, the highest figure any Spanish port has ever achieved. It’s not just cargo, either. Algeciras has also become a primary European cruise ship port. Regular routes now traverse the strait with North Africa, and combined, the Algeciras-Ceuta, Algeciras-Tangier Med and Tarifa-Tangier regular lines together resulted in a total of over 6 million passengers in 2019 - the first time that the milestone has been broken and hinting at an even more vibrant future tourism trade in Andalusia.

We help companies become more efficient, productive and safe We offer IT services tailored to your needs. We will study your project, helping you make the correct choice at ali times. www.midway.tech hola@midway.tech

technologies with love!

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Bay of Algeciras Logistics Area INCREASED CONNECTIVITY A 300 Ha Logistics Activity Area - including a fully integrated rail terminal connected to the TEN-T Network- set to bringing companies closer to the markets they serve and reinforcing the role of the Port of Algeciras not only as a transhipment centre, but also as a strategically well-located Gateway Port for Asia, Africa and Latin America trades. ▼AFRICA

PORT OF ALGECIRAS ▼EUROPE

SECTOR 1

El Fresno SECTOR 2: San

Roque

info@redlogisticadeandalucia.es

LOGISTIC NETWORK ANDALUCIA

Increased connectivity

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A resolute commitment and a well-founded business strategy from the Andalusian Government to offer logistics zones to provide added-value services that promote consolidation and integration of transport & logistics industries in order to support a better efficient movement of cargoes beyond shipping Terminals.

In addition, the recent agreement between the public entities –Logistics Network of Andalucía SA & Cadiz Free Zone Consortium- signed on 1st of April 2018 sets the basis to develop a new Free Trade & Tax Zone on sector I El Fresno where the companies willing to establish their facilities will take advantages form customs and tax benefits.

Split in two sectors - El Fresno and San Roquethese State of the art infrastructures perfectly line up with the latest shipping companies, terminals and logistics operators strategies to enhance supply chain efficiencies by reducing dwell time and costs, easing terminals congestion, roads risks, fewer emissions and levels of pollution, so cargo owners save on storage charges.

Finally, Sector II San Roque - 10km away from the port- with 125 ha of high-quality logistics land divided into three separate areas that exclusively deal with logistics, intermodal operations and other transportrelated and auxiliary services, will host a Great Intercontinental logistics and distribution platform in Southern Europe. info@redlogisticsaseandalucia.es

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PORT OF ALGECIRAS

“We were in completely unknown territory [at the start of the pandemic], where there were no protocols in place and we just acted as events unfolded. But the port has continued operations from minute one, with no break in traffic.”

Business Continuity in The “New Normal” The personal resilience shown by Mr. Landaluce back in March, when he continued work in quarantine, is reflected in his general attitude to how the shipping industry needs to respond to coronavirus. He says: “We were in completely unknown territory [at the start of the pandemic], where there were no protocols in place and we just acted as events unfolded. But the port has continued operations from minute one, with no break in traffic.” That’s not to say that the port has remained completely unaffected. As Mr. Landaluce notes, the closure of Spain’s

borders has led to a 5% fall off in traffic over the course of the year, but says: “things are beginning to stabilize again and we’re ready for whatever comes our way, preparing ourselves for what we have to achieve in the coming days and months,” before noting that 140 people usually working at the port have been able to work from home during the pandemic.

Growth generating growth The expansion of Algeciras container traffic - now being a destination of the world’s 23,000 TEU super container ships - means that it has reached a point where investment

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will be required for it to continue growing. On this, Mr. Landaluce is unequivocal: “the progress of the port depends on its southern expansion,” he says, referring to the planned expansion of the anchorage to the south of the existing port. He continues: “For this, we’ll need to raise 300 million from our own funds or from external investors. We’ve grown twice as fast as most other docks over the past few years and we’re reaching the stage where we need expansion.” For this, the port has developed a master plan with a time horizon of 2030. Among the plans outlined in the master plan in addition to those mentioned by Mr. Landaluce, is a maritime lagoon in the north of the port to continue its tourism growth in line with that of cargo. Thankfully, the aim is for this growth to be as sustainable as possible. Under Mr. Landaluce’ s management, the port has signed up to the AIVP (the world authority for port cities) 2030 agenda, among which is a range of 10 sustainability targets for

PORT OF ALGECIRAS

“We’ve grown twice as fast as most other docks over the past few years and we’re reaching the stage where we need expansion” ports to aim for. As part of this program, Mr. Landaluce has ordered all buildings under his organization’s management to install photovoltaic solar panels to generate renewable electricity in-house.

Strategic Partnerships Any port is only as useful as the reliability of its throughput and for that, ABPA calls on a number of partners and stakeholders, almost all of whom are local owing to the port’s extensive history. Many of these maintain close relations with the port, having

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been founded by locals whose families have been employed in various parts of the organization over the decades. Examples include Gabarras y Servicios S.A., a diversified shipping services company founded in 1981, whose founder members were former employees of the port authority. Other local firms which are offshoots of the port authority are Grupo Piedra, a logistics company founded in the port just under 25 years ago in 1996, Algeciras Mooring Services, S.L , Area Logistica Bahia de Algeciras and finally, Global Logistic Algeciras Port S.L However, there is also a sizable international contingent of partners, as one might expect of a port of this size. These include APM Terminals Algeciras, the Dutch global container operating company, CMA CGM, the French shipping logistics company, and Pensinula Petroleum, the UK-registered firm which is the world’s largest physical bunker supplier.

The winds of change As trade logistics improves on the continent of Africa over the coming years - and all indications are that it is improving at lightning speed, we can reasonably expect to see significant growth in trade between the continent and Europe. As Europe’s closest port to Africa, Algeciras is likely to be one of the big beneficiaries of this trade. Nobody knows this better than its port authority President, Mr. Gerardo Landaluce, who regularly refers to the port by its African name, Green Island. For Mr. Landaluce and the ABPA, business is very much a case of full steam ahead.

PORT OF ALGECIRAS

 info@apba.es @puertoalgeciras www.apba.es

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PLAYING ITS PART IN EAST AFRICA’S

LOGISTICS REVOLUTION Kenyan Ports Authority Business Excellence last visited the Kenyan Ports Authority (KPA) in June 2014, at a time when it was planning a second container terminal for Mombasa Port to further extend its capacity RESEARCH BY

Kaye Kalu

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usiness Excellence last visited the Kenyan Ports Authority (KPA) in June 2014, at a time when it was planning a second container terminal for Mombasa Port to further extend its capacity. Shortly after our feature, in August of that year, it agreed to a deal worth close to half a billion dollars with China Communications Construction Company (CCCC) for the construction of three new berths. The berths were just one element of the ambitious Lama Port South Sudan Ethiopia

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Transport (LAPSSET) corridor program. LAPSSET, in turn, was an important component of the Kenya 2030 national planning strategy, which focused on reforms and development across 10 sectors in the economy.The estimated total investment for LAPSSET was set to reach $24 billion - a huge undertaking for a country whose GDP is approximately $75 billion. On our return to KPA this year, we took a look at how the new berths being constructed by CCCC were shaping up and the difference

KENYAN PORTS AUTHORITY

“The estimated total investment for LAPSSET was set to reach $24 billion - a huge undertaking for a country whose GDP is approximately $75 billion”

they were likely to make in the years ahead. The last number of years haven’t always been without their challenges for KPA but if the colourful history of Mombasa - ‘the city of merchants,’ and Africa’s fifth busiest portteaches us anything, it’s that this is a city which is highly resilient.

Progress Report By any measure, 2019 was a good year for KPA. In August, the first berth of the aforementioned CCCC project was

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KENYAN PORTS AUTHORITY

“KPA is already ahead of the KPIs set in the 5-year plan, which sets a target of 1.5 million cargo boxes by 2022”

delivered. And as work continued on the second and third berths, which are due to be completed by December 2020, the company finished the year on a positive note by registering a record 1.4 million cargo boxes, outperforming the target of 1.35 million cargo boxes which had been set for the year.

This translated into over 34 million tones of throughput cargo at Mombasa Port, a nearly 20% increase on the equivalent figure for 2018. This is the culmination of all the efforts being undertaken by the KPA and its stakeholders. Modernization and expansion of the port infrastructure, for example, has meant that there are far fewer logistics bottlenecks, easing

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KENYAN PORTS AUTHORITY

“The development of berths 22 and 23 at Mombasa Port is underway and making good progress”

the flow of trade in Kenya and East Africa in general. Remarkably, twenty-foot equivalent units (termed “teus” in the industry), grew by 87% year on year to 197,272. On this basis, KPA is already ahead of the KPIs set in the 5-year plan, which sets a target of 1.5 million cargo boxes by 2022. The coronavirus pandemic that has hit in early 2020 will inevitably be a drag on the company’s efforts this year, but in conjunction with the Kenyan government and

other stakeholders, KPA has already put in place a range of measures to counteract its negative impact. The development of berths 22 and 23 at Mombasa Port is underway and making good progress. Dredging work is being carried out by Boskalis and should be finished by 2021, allowing the next phase of construction to commence. Both berths are already approximately sixty percent complete. The deepening of the Kilindini channel has also

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of their processes and increase competitiveness in the global scenario. our association with Mumias sugar co. Ltd is remarkable in core areas, such as the supply of: • sealing Products - Gland Packing & steam Gasket • Tube cleaning equipment (Boiler) • roller Bearing & cooper split roller BrGs • Mini roller Grooving Tools • Boiler Tubes, Lifting Tools & equipment • electric Geared Motors • Insulation & Lagging Materials • Industrial Gate Valves LP & hP • conveyor Belts gah@swiftkisumu.com

KENYAN PORTS AUTHORITY

“The speed at which the turnaround has occurred at the KPA’s ports is a result of improving their own processes, but also demanding more of their stakeholders”

allowed larger o berth and improved cargo handling capacity which has improved ship turn-around time and cargo evacuation. KPA’s progress is underpinned by the company’s long-term strategic plan, but also greater integration with its partners, examples being the Standard Gauge Railway (SGR( and Nairobi Inland Container Depot (ICD). With their support, KPA has been able to reduce

average cargo dwell-time from 23 days to around four days within 12 months. This has also resulted in record cargo numbers for SGR, coming in at around three million tonnes for 2019.

Partners and Suppliers In addition to the Kenyan government, Trademark East Africa (TMEA) has become

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one of the most important stakeholders for the KPA over the past few years. Developing trade logistics hubs is of limited use if there aren’t good trade relations, which is where TMEA operates - seeking to expand Kenya’s trade horizons. The speed at which the turnaround has occurred at the KPA’s ports is a result of improving their own processes, but also demanding more of their stakeholders. All of the KPA’s partners and suppliers have aided

in raising standards. This includes stalwarts of the shipping industry such as Solutions (MTBS) for maritime consulting, RAIS Shipping Services, the liner agency, and the Comarco Group, a Kenya-based shipping contractor. The Kenya Ships Agents Association also provides ongoing invaluable support. In addition to the aforementioned dredging work on berths 22 and 23 being carried out by Boskalis, engineering work on the same is being conducted by Southern

“All of the numbers at Kenya Ports Authority are trending upwards and this doesn’t look like stopping anytime soon”

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Engineering Co. Ltd (SECO) and African Marine & General Engineering Company (AMGECO). Continuous and uninterrupted energy at the KPA’s ports is ;provided by PowerGen and KETRACO, while security is taken care of by Solvit Security Solutions.

The Revolution Begins Here When the MV Lowlands Mimosa berthed in the Port of Mombasa in June 2019, it made very few headlines, even in Kenya. But make no mistake - this was a huge milestone for the Port of Mombasa and the KPA. Lowlands Mimosa is the biggest bulk carrier vessel in the world and its berthing at the port was a sign that a revolution in logistics is afoot here. That a vessel of this magnitude would arrive at Mombasa would have been unthinkable less than five years ago.

All of the numbers at Kenya Ports Authority are trending upwards and this doesn’t look like stopping anytime soon - too many stakeholders stand to benefit from its success - principally the people of Kenya, Ethiopia and Uganda. TEUs at Mombasa port are expected to continue their ascent to reach 3.5 million by 2030 and 5.9 million by 2047. Thanks to the KPA’s stellar work, the revolution is firmly underway in East African logistics.

KENYAN PORTS AUTHORITY

 +254-41-2112999  info@kpa.co.ke @Kenya_Ports www.kpa.co.ke

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Puerto Bue

EJE DE DESARROLLO D

La Ciudad de Buenos Aires, capital de la República Ar encuentra ubicada en la región centroRESEARCH BY

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María Be

enos Aires

DE UNA NACIÓN ENTERA

rgentina, es la ciudad más poblada de todo el país y se -este, sobre la orilla del Río de la Plata.

ernardita Guschmer BUSINESS EXCELLENCE [ ISSUE 1468 ]

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a Ciudad de Buenos Aires, capital de la República Argentina, es la ciudad más poblada de todo el país y se encuentra ubicada en la región centro-este, sobre la orilla del Río de la Plata. Sin duda alguna, el Puerto Buenos Aires ha sido una pieza fundamental de la historia de esta ciudad y de todo el país. El 3 de febrero de 1536, Don Pedro de Mendoza, militar español de familia noble, fundó el “Puerto Real de Nuestra Señora Santa María de los Buenos Aires”. Es en esta fecha que también nace la Ciudad de Buenos Aires. Es importante mencionar que en este momento Argentina aún no existía, y recién se creaba la Ciudad de Buenos Aires, de la mano del puerto. Es decir que incluso antes de que los colonizadores españoles crearan el

Oses (Director de comunicación), quien nos contó que el puerto “posee una capacidad operatoria de 1.5 millones de TEU (unidad de medida del transporte marítimo y fluvial) anuales. Además, mueve el 62% de la carga de contenedores del país. En la actualidad se encuentra concesionado y sus operadores son tres de los cinco más grandes del mundo”. La existencia del Puerto Buenos Aires ha sido un eje fundamental de desarrollo para todo un país. Reflejo de esto es el hecho de que es fuente de más de dos mil empleos directos en sus tres terminales. Adicionalmente, en Argentina y en toda la región genera cientos de miles de empleos indirectos. Sus múltiples conexiones con distintos medios de transporte han consolidado al Puerto Buenos Aires como un gran centro

“Posee una capacidad operatoria de 1.5 millones de TEU (unidad de medida del transporte marítimo y fluvial) anuales.” Virreinato del Río de la Plata, el Puerto Buenos Aires ya operaba en las riberas del Río de la Plata, el más ancho del mundo. El desarrollo del puerto y de la zona siempre han estado ligados. El puerto también cobra gran importancia por haber sido el lugar de recepción de millones de inmigrantes. Estos llegaron de todo el mundo a las riberas del Río de la Plata en búsqueda de nuevas oportunidades. Tanto en Argentina como en toda Sudamérica, la cultura está marcada por la influencia de las olas migratorias.

La actualidad del puerto En la actualidad el Puerto de Buenos Aires es el único puerto nacional y principal puerto de la Argentina. En Business Excellence tuvimos la oportunidad de entrevistar a Facundo

logístico de distribución. El puerto cuenta con una posición privilegiada, en el ingreso de la Hidrovía Paraguay–Paraná, un canal navegable por los ríos Paraguay, Paraná y algunos de sus afluentes. Esto le permite ser el punto de transbordo de todas las barcazas que arriban por esta ruta tanto de las provincias argentinas como desde los países de Paraguay y Bolivia.

El carácter federal del puerto Al ser el Puerto Buenos Aires el único puerto nacional, la gestión reciente se ha destacado por su carácter federal, es decir, de integración con las demás provincias. En ese sentido, la administración del puerto se toma muy en serio la responsabilidad de incentivar el comercio exterior, impulsar el desarrollo de los demás puertos del país y fomentar el crecimiento

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de la industria argentina mediante políticas públicas. A nivel regional, se trabaja en la promoción e implementación de políticas y procesos sustentables, en la implementación de tecnología y en la capacitación de los agentes portuarios. En palabras Facundo Oses, “con el Consejo Portuario Argentino (CPA), y siguiendo los lineamientos del Presidente Fernández, tenemos una mirada muy federal, ya que nos interesa potenciar el desarrollo de los puertos argentinos que son grandes generadores de trabajo y dinamizan las economías regionales”.

Políticas sostenibles del puerto El Puerto Buenos Aires cuenta con un Plan Estratégico de Sostenibilidad que abarca tres dimensiones: la social, la ambiental y la económica. Todas las acciones que se promueven están asociadas con los Objetivos del Desarrollo Sostenible (ODS) acordados por la Organización de las Naciones Unidas (ONU). Estas se basan en un enfoque de derechos con un carácter integral. Dicho plan de sostenibilidad abarca los distintos aspectos la operación del puerto. Dentro de este esquema, es crucial garantizar la calidad y la excelencia de los

“Donan dinero resultante de la venta de chatarra de barcos hundidos o material naval abandonado que se remueve de la jurisdicción portuaria”.

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reciclables e incluso “donan protocolos y servicios. Las Did you know? dinero resultante de la venta gestiones para la certificación de chatarra de barcos hundidos de distintas normas y la adhesión o material naval abandonado a programas internacionales Por fortuna, que se remueve de la dan fe del compromiso con la actividad jurisdicción portuaria”. la sostenibilidad. portuaria no ha El Sistema de Gestión cesado en el Consecuencias por la Ambiental con que opera el Puerto Buenos pandemia del Covid-19 puerto ha sido certificado bajo Aires. De hecho, Por fortuna, la actividad Norma ISO 14.001 para las el puerto portuaria no ha cesado en el actividades de administración, ha seguido Puerto Buenos Aires. De hecho, operación y control. Esto permite, trabajando el puerto ha seguido trabajando de acuerdo con Facundo Oses al 100% de al 100% de su capacidad “lograr una mejor eficiencia en su capacidad operativa. Su funcionamiento ha el uso de recursos naturales, una operativa. sido esencial para garantizar el gestión efectiva de residuos, comercio exterior de Argentina. medidas en prevención de También el abastecimiento de derrames y la adecuada gestión elementos fundamentales para el consumo de impactos ambientales en proyectos y de las familias e insumos para combatir la obras, entre otros”. propagación del nuevo coronavirus. Asimismo, para potenciar los alcances de Desde el puerto han trabajado junto a estas iniciativas, la administración del puerto las autoridades sanitarias nacionales en la trabaja con ONGs para recuperar los residuos

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“las autoridades de la AGPSE bonificaron en un 20% los cánones de locación de los permisionarios y, además, extendieron de cinco a siete días el período del forzoso. Esto disminuyó notoriamente los costos logísticos y redujo la circulación de personas dentro de la jurisdicción”.

implementación de protocolos para cuidar a la fuerza laboral del puerto. Este ha sido un trabajo mancomunado con los distintos actores. Se ha abierto un diálogo en torno a las distintas necesidades y se han encontrado soluciones a la medida de cada situación. También se han implementado estrategias que incentivan la llegada de más buques de carga y de cruceros. Ejemplo de esto es la reducción en las tasas portuarias que ha mitigado el impacto de la pandemia y logrado preservar puestos de trabajo. De acuerdo con Facundo Oses “las autoridades de la AGPSE bonificaron en un 20% los cánones de locación de los permisionarios y, además, extendieron de cinco a siete días el período del forzoso. Esto disminuyó notoriamente los costos logísticos y redujo la circulación de personas dentro de la jurisdicción”.

Medidas de prevención del contagio Los equipos técnicos del puerto, junto a las autoridades sanitarias nacionales competentes, han desarrollado los protocolos de sanidad que se encuentran vigentes. Estos se basan en la prevención y el cuidado. Entre ellos, el distanciamiento social, la utilización de elementos de protección personal, el lavado frecuente de manos, la atención rápida y aislamiento de los casos sospechosos. Asimismo, se ha realizado un esfuerzo para disminuir la circulación dentro de la zona portuaria, siempre

garantizando el cumplimiento de todos los servicios y las operaciones.

El porvenir del Puerto Buenos Aires Antes de hablar del futuro, cabe destacar que, tras la declaración de Independencia de la República Argentina, el puerto fue eje de discusión durante muchísimos años por su control. Con la nación unificada, en 1980 la Ciudad de Buenos Aires quedó bajo dominio nacional y el puerto pasó a ser el primer puerto federal. Desde allí, el Puerto Buenos Aires pertenece a los millones de argentinos que habitan el territorio. Actualmente, los equipos técnicos de Puerto Buenos Aires y del Ministerio de Transporte se encuentran elaborando los pliegos para la licitación de las terminales, en donde la operación se adjudicará a dos operadores. Esto conllevará una renovación de la infraestructura portuaria, que permitirá al puerto seguir siendo ese nodo de progreso y desarrollo que es fuente de orgullo e impulsa a una nación entera.

PUERTO BUENOS AIRES

 consultations-agp@ puertobuenosaires.gob.ar www.argentina.gob.ar

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IT’S TIME TO FOCUS ON YOU

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