TRENCON CONSTRUCTION
TRENCON CONSTRUCTION
Capitalising On
Renewed Prosperity PRODUCTION: William Denstone
Having ridden the storm of South Africa’s construction industry in recent years, Trencon Construction is seeing the benefits of its more than 22 years of carefully crafted expertise. Adept at tackling briefs across many different industry segments, progress is now taking the form of several new, ambitious and noteworthy projects.
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2017 was, by all measures, a particularly challenging year for the construction industry. Whether due to a reduction of skills, budget constraints or the division of projects into smaller components in support of emerging black empowerment-based SMMEs, we witnessed a dramatic
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rationalisation of the industry. By September of last year, confidence was at its lowest level since the third quarter of 2000. Weak growth in construction activity standing at just 3% year-on-year - and a contraction in the value of spending contributed to poor growth. However, even in the midst of such a trying
environment, the past two years have been building toward a far more optimistic outlook. According to a report by Statistics South Africa, for instance, the number of building plans passed in 2016 rose by 6% compared to the previous year, alongside an increase of 8.3% in the total value of newly constructed buildings.
WOMENS LIVING HERITAGE DEVELOPMENT
INDUSTRY FOCUS: CONSTRUCTION
POSITIVE SIGNS Emerging from such a tough, lean period largely unscathed, the state of South Africa’ construction industry is finally looking up. In value terms, the construction industry is expected to record a compound annual growth rate (CAGR) of 14.9%, to reach US$ 41 billion, by 2022. The residential construction industry increased at a CAGR of 17.6% during 2013-2017, while the commercial building construction sector in value terms is expected to record a CAGR of 13.1% by the end of the forecast period. Growth is expected to be supported in the coming years by investment in transport and logistics infrastructure and energy construction projects, as well as the expansion of low-cost residential buildings. In addition, government efforts to balance supply and demand for social housing will
drive a need of the construction of new residential units, while urbanisation will continue its recent generation of demand for residential and infrastructure development. Government’s plan to spend more than R940 billion on infrastructure development will also help matters greatly. For Trencon Construction, formed in 1995, this is good news. The company services the commercial, industrial and residential markets of South Africa and has become one of the country’s most prominent contractors today because of its unique approach to doing business. A 100% black-owned and 55% black woman-owned entity, it is famed for its ability to deliver projects of high complexity on time and within budget, all while contributing to the social environment in which it operates. Rarely achieved Construction Industry
Development Board (CIDB) rating of 9GB standing as testament to the calibre of work delivered up to this point. THE RIGHT EXPERTISE A fully integrated and diversified construction body, Trencon Construction has the ability to execute traditional building and civil contracts, as well as concession projects; perhaps most notable among these latter have been the Department of International Relations and Cooperation and the City of Tshwane Head Office developments. Trencon is supported by significant resources and, thanks to these, is well placed to effectively tackle projects of any size and complexity.
// THE AWARD OF THE CONTRACT TO THE TRENCON BLACK JILLS JV REFLECTS GIBELA’S COMMITMENT TO TRANSFORMATION IN SOUTH AFRICA //
WE SPECIALISE IN BUILDING TOP OF THE RANGE, MODERN AND SOPHISTICATED KITCHENS, BUILT-IN CUPBOARDS, ALUMINIUM WINDOWS & DOORS, BARS & BATHROOMS, AS WELL AS FURNITURE & COUNTER TOPS DESIGNED AND MANUFACTURED TO SPECIFICATION!
Its expertise ranges from industrial developments and office blocks to shopping centres, residential developments, parkades, airports and schools. This makes it perfectly placed to take full advantage of what look to be the important trends for the future of South African construction, with urbanisation and semi-migration pinpointed within the industry as some of the key drivers of growth in the three years to come. Trencon will be able to profit further as the demand for middle and high-income housing continues unabated, while densification policies in cities like Cape Town are also manifesting in something of a building boom at present.
T: (016) 455 4190 F: (016) 422 4199 WWW.SWANNIESSHOPFITTERS.CO.ZA SWANNIES@CYBERSERV.CO.ZA
STUNNING PORTFOLIO Trencon Construction is already seeing real evidence of this upturn. Of its extensive list of ongoing and completed
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TRENCON CONSTRUCTION
PRAN BOULEVARD OFFICES, RIDGESIDE, UMHLANGA
projects, among the most noteworthy is the Katherine Towers development in Sandton. This 21,000m² GLA, P-Grade Development is within walking distance of Sandton City and the Gautrain Station, and is set to become the New Head Office for Bidvest Bank and many other tenants seeking a lucrative location. The construction of the Mbombela Square Office Park in Nelspruit, meanwhile, will result in two nine storey office blocks, a triple story restaurant block and a double storey restaurant block, with a total construction area of 15,100 m2. To this catalogue can now be added perhaps Trencon’s most impressive undertaking to date. Gibela Rail Transport Consortium is a new empowered South African rail company, tasked with the revitalisation of rail transport in South African metro areas, and in 2016 announced that it had
awarded the Trencon Black Jills JV the R400-million contract to build the main site buildings at its Dunnottar train manufacturing plant, on the East Rand. RAIL REVITALISATION According to Gibela Rail Transport Consortium CEO Thierry Darthout, construction remains on track for completion in March next year. “We are in the process of commissioning the industrial equipment at the plant,” he explained, “and the first locally built train should be delivered to the client in December 2018.” Trencon is reported to have a 70% share in the JV, and Black Jills, an engineering and project management firm which specializes in Civil Engineering, facilities and property management, renewable energy and project management, the remaining
30%. It is not the first time that the two have joined forces; the companies also worked together on the construction of the Lillian Ngoyi Women’s Living Heritage Monument, in Pretoria. “The award of the contract to the Trencon Black Jills JV reflects Gibela’s commitment to transformation in South Africa,” summed up Gibela CEO Marc Granger. “The Trencon Black Jills JV was selected from seven entities that tendered for the main site buildings package. All tenders were adjudicated on the basis of empowerment credentials, price and, most importantly, contribution to economic development – a critical component of the overall rolling stock project.”
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May 2018
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