Endeavour June 2019

JUNE 2019

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Amazing World

JELLYFISH LAKE

SOUTH AFRICAN POST OFFICE ECONOMIC DELIVERY

NOMAD TOURS All-Inclusive Changes

LUNDIN MINING Proving Its Mettle UK CAN USA EUR SA ZAR

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HEADS OF DEPARTMENTS Managing Editor Alice Instone-Brewer editor@littlegatepublishing.com Managing Director Alex Hilling-Smith alexsmith@littlegatepublishing.com Sales Manager Emlyn Freeman emlynfreeman@littlegatepublishing.com Head of Editorial Research Paul Bradley paulbradley@littlegatepublishing.com Editorial Researcher James Lapping james@littlegatepublishing.com Editorial Researcher Alex Hayes alexhayes@littlegatepublishing.com Editorial Researcher Dennis Morales dennismorales@littlegatepublishing.com Editorial Researcher David Kimberley david@littlegatepublishing.com Corporate Director Anthony Letchumaman anthonyl@littlegatepublishing.com Lead Designer Alina Sandu studio@littlegatepublishing.com CEO Stephen Warman stevewarman@littlegatepublishing.com For enquiries or subscriptions contact info@littlegatepublishing.com +44 1603 296 100 ENDEAVOUR MAGAZINE is published

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EDITOR’S NOTE When we reached out to the South African Post Office, we expected to speak with them about the improvements they are making to their mail delivery system. The Post Office was a failing entity, but is now back on the rise, improving its efficiency and working back towards profitability after a long period of operating poorly and at a financial loss. What we didn’t expect was to hear about was a new kind of banking that could open up the future for South Africa’s less affluent population, but this is what the Post Office’s new CEO is working towards with all of the changes he is making to save the state system. We were truly inspired and impressed by the plans that are in place, and imagine you may be too if you read our interview.

The Post Office isn’t the only body seeking to do good in its country that we spoke with this month. The Botswana Chamber of Mines told us about how they have overseen coal and, in particular, diamond mining in their country to raise them from one of the world’s poorest economies to one that is flourishing. Through well-run mining practices and good governance, Botswana has been able to make the most of its natural resources, and with the encouragement of the Chamber, has applied these profits to help diversify the country’s revenue streams to stabilise and spread its economic strength. The Chamber also encourages all of the mines in the country to take care of the land and communities around them, further spreading the good.

We spoke with many fascinating companies, but as always, one of the real pleasures was reconnecting with Nomad Tours. If you’ve read Endeavour in the past, you probably know Nomad Tours by now, and you’ll know that this African tour company are always improving their services to make them even safer, more responsible and more enjoyable. This month, however, the big change they discuss doesn’t just expand their tour options, but could be a major industry-changing first.

We hope you enjoy hearing about all of these as much as we did. Lastly, as it draws to an end, Ramadan Mubarak to those who have been celebrating!

Alice Instone-Brewer Endeavour Magazine | 3

CONTENTS

FEATURES

13

Economic Delivery South Africa Post Office

25

All-Inclusive Changes NOMAD Tours

39

Tomorrow’s Resources Appia Energy

45

Analytical Ease Uniper Energy

53

Working For Everyone Botswana Chamber of Mines

59

Providing For Myanmar MSP CAT

65

Keeping Singapore In Business Seashore Group

71

Proving Its Mettle Lundin Mining

79

Craftsmanship In The Caribbean TOSL Engineering Ltd

Keeping Hydrated 85 DESALCOTT

91

Cleaner Skies E.ON Wind Power

Bridging The Gap 101 Barbados Port Inc

Experience The Support 107 Kanu Equipment

Appia Energy 4 | Endeavour Magazine

113

Seeking Higher Things Davis & Shirtliff Group

Seashore Group

ARTICLES

Business Headlines

6 Europe 7 Africa 8 Asia 10 Middle East 11 America

Amazing World

36 76

Jellyfish Lake Narwhals Return

Automotives 96

Skoda Fabia Hatch SE

DESALCOTT Endeavour Magazine | 5

BUSINESS HEADLINES EUROPE UK Prime Minister resigns Theresa May has said she will quit as Conservative leader on June 7th, paving the way for a contest to decide a new prime minister. In an emotional statement, she said she had done her best to deliver Brexit and it was a matter of “deep regret” that she had been unable to do so.

Mrs May said she would continue to serve as PM while a Conservative leadership contest took place. The party said it hoped a new leader could be in place by the end of July.

Mrs May will still be prime minister when US President Donald Trump makes his state visit to the UK at the start of June.

Foreign Secretary Jeremy Hunt has become the latest MP to say that he will run, joining Boris Johnson, Esther McVey and Rory Stewart.

More than a dozen other MPs are believed to be seriously considering entering the contest.

bill. Unions said the company’s collapse was an “economic and industrial catastrophe” and vowed to continue fighting to save jobs at the company, which was bought by Greybull for £1 in 2016.

EU citizens denied vote in European elections to sue UK government The government is facing the prospect of being sued by campaigners for EU citizens in the UK and British nationals abroad who were denied a vote in the European parliament elections. John Halford, a public law specialist at Bindmans, said the electoral fiasco was something a democracy should not tolerate.

“The right to vote is the foundation for all citizenship rights,” he said. “This election saw a large-scale, systematic, openly discriminatory denial of that right. The case we plan to bring will show that this is not something the law will tolerate and that there must be accountability and consequences.”

Halford is working with the 3million group in the UK, which campaigns for the rights of EU citizens after Brexit, and also with British in Europe, which campaigns for Britons settled elsewhere in the bloc.

Germany sees spike in anti-semitism The German government’s anti-Semitism commissioner has urged Jews to avoid wearing skullcaps in public. Felix Klein warned Jews against donning the kippa in parts of the British Steel collapses country, following a rise in anti-Semitism.

British Steel has collapsed, putting more Mr Klein said his opinion on the matter had than 4,000 jobs directly at risk and threatening “changed compared with what it used to be”. a further 20,000 in the company’s supply chain.

“I cannot recommend to Jews that they The company has been put into compulsory wear the skullcap at all times everywhere in liquidation after talks broke down between the Germany,” he told the Funke newspaper group. government and British Steel’s private equity A sharp increase in the number of antiowners Greybull Capital.

Semitic offences was recorded by the German Greg Clark, the business secretary, said the government last year. government had worked “tirelessly” to try to Official figures showed 1,646 hate crimes save the company but had no remaining legal against Jews were committed in 2018 - an options to provide financial support. increase of 10% on the previous year.

Insolvency experts labelled British Steel’s Physical attacks against Jews in Germany demise as the “first heavyweight casualty of also rose in the same period, with 62 violent Brexit” and warned of a “tsunami effect” that incidents recorded, up from 37 in 2017. would result in taxpayers footing a significant 6 | Endeavour Magazine

AFRICA South Africa’s President Ramaphosa sworn in South Africa’s President Cyril Ramaphosa has been inaugurated at a stadium in the capital, Pretoria.

The African National Congress (ANC) leader vowed to tackle corruption and rejuvenate the struggling economy.

More than 30,000 people gathered to witness the ceremony which included a flypast and military parade.

Mr Ramaphosa was elected earlier this month with a majority of 57.5%, the smallest since the party came to power 25 years ago.

Why Huawei’s Google woes worry Africa Google’s decision to withhold its Android software from Huawei is being seen as the beginning of a technology cold war that could compel African countries to choose between US and Chinese technology.

Most Africans connecting to the internet today are likely to be using a Chinese smartphone, powered by a Chinese-built network, and at least half of the time, it was built by Chinese tech giant, Huawei.

“Huawei built huge swathes of Africa’s current IT infrastructure and if the US is successful in crippling the company, the aftershocks could be very painful for Africa’s burgeoning tech sector that now relies on a company in Washington’s crosshairs,” Eric Olander, from the South Africa-based China Africa project, says.

US President Donald Trump has been leading a public campaign urging American allies to cut ties with Huawei, saying the company’s technology, among other things, was a security risk because it allowed the Chinese government to spy.

The company has repeatedly denied the claims.

The listing of MTN Nigeria, a unit of South African telecoms firm MTN Group, made it the second-largest firm on the Nigerian Stock Exchange, and since then its share price has risen from 90 naira to 140 naira.

“We received all regulatory approvals required to list our shares,” MTN Nigeria said in a statement. “We are cooperating fully with the authorities.”

Kenya rules on homosexuality Kenya’s high court recently ruled against the possibility for same sex marriage, with criminal sanctions strongly upheld.

Many of Kenya’s LGBTQ community have sworn to continue to campaign until their viewpoint is heard.

Homosexual activist Kevin Mwachiro took to Twitter to express that there is much to be proud of in the fight for equality despite this setback.

Although the High Court has ruled against campaigners seeking to overturn a law banning gay marriage, the battle appears far from being over; with a considerable number of responses applauding his efforts.

“Thirteen years ago, I would never have thought that Kenya could get to this point – that our LGBTQ community would go to court and fight for our rights. We have come a long way”, he said.

MTN Nigeria under investigation MTN Nigeria said it is under investigation by the Nigerian financial crimes agency over its listing in late May, although it “has not been accused of any wrongdoing” by the Economic and Financial Crimes Commission.

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ASIA Taiwan holds Asia’s first legal same-sex weddings Taiwan has held Asia’s first legal same-sex weddings after being the first country in the continent to legalise the unions.

Couples can now go to government offices to legally register their unions and obtain wedding certificates and new identity cards listing their spouses.

However, the new law still contains restrictions not faced by heterosexual couples.

Same-sex couples can currently only adopt their partners’ biological children and can only marry foreigners from countries where gay marriage is also recognised.

LGBTQ rights groups say they are willing to accept partial equality for now in the hope of winning later legal battles over issues such as adoption, surrogacy and marrying foreigners.

Telegram comes to the rescue following restrictions on messaging apps in Jakarta Telegram came to the rescue when Indonesians looking to communicate with one another switched to the messaging app following the government’s decision to temporarily limit user access to some features on WhatsApp, Facebook, Instagram and Twitter.

Communications and Information Minister Rudiantara said that the temporary restriction was applied to prevent the spread of ‘fake news’ and misinformation following the series of protests and violent demonstrations that occurred in the capital on May 21-22.

The restrictions not only impacted private communications, but hindered offices in conducting their work. Telegram is a highly encrypted messaging service developed by Russian brothers Nikolai and Pavel Durov.

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Angry residents set fire to police station in Papua following shooting Angry residents in Wagethe in Deiyai regency, Papua, set fire to Tigi Police station following the shooting of a young man by the police on the same day.

The shooting occured after four men allegedly intercepted a car to ask for Rp 10,000 (S$1) from the driver. The four men, reportedly intoxicated, argued with the driver who refused to give the money. The driver then reportedly got out of his truck and chased the four men with a dagger. The driver returned to his car, but not long after, the four men came back, bringing more people, who smashed the car’s window. The driver ran to Tigi Police station for protection, and police officers later went to the location and shot into the crowd, hitting Elianus Dogopiai, 17, in his thigh.

In response, Wagete residents went to Tigi Police station and set fire to the building. The police chased the group whilst shooting bullets and tear gas to disperse the crowd.

Modi vows ‘inclusive’ India after landslide election win Hindu nationalist Prime Minister Narendra Modi vowed an “inclusive” future for all Indians after a landslide election victory.

“Together we grow. Together we prosper.

Together we will build a strong and inclusive India. India wins yet again!,” Modi tweeted as supporters of his Bharatiya Janata Party (BJP) celebrated nationwide.

“The faith placed in our alliance is humbling and gives us strength to work even harder to fulfil people’s aspirations,” he said before arriving at BJP headquarters, flashing victory signs with both hands and being showered in petals. Although final results were yet to be published when the announcement was made, a rolling vote count by the election commission showed the Bharatiya Janata Party (BJP) increased its majority with 302 out of 543 elected lower house seats.

The BJP’s main rivals Congress were on just 51 seats, with Rahul Gandhi -- the greatgrandson, grandson and son of three premiers - conceding defeat and congratulating Modi.

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MIDDLE EAST 1,500 US troops head to Middle East as Trump seals $7bn Saudi arms sale The US will send hundreds of additional troops and a dozen fighter jets to the Middle East in the coming weeks to counter what the Pentagon has said is an escalating campaign

by Iran to plan attacks against the US and its interests in the region.

For the first time, Pentagon officials publicly blamed Iran and its proxies for recent tanker bombings near United Arab Emirates and a rocket attack in Iraq. Donald Trump told reporters that the 1,500 troops would have a “mostly protective” role as part of a build-up that began this month in response to what the US said was a threat from Iran.

The announcement caps three weeks of elevated tensions with Iran,as the administration hurled accusations of an imminent attack and abruptly deployed navy warships to the region.

The moves alarmed members of Congress, who demanded proof and details, amid fears the US was lurching toward open conflict.

Iran police arrest 30 at private yoga class Thirty people taking part in a yoga session have been arrested during a private class in Iran, reports suggest, causing a buzz across the country’s social media.

They were detained at a private residence in the northern city of Gorgan, where they were apparently taking part in a mixed class.

Local justice department official Massoud Soleimani said the instructor, who was also arrested, had no licence to run the class and had advertised the event on Instagram.

10 | Endeavour Magazine

He also said that those taking part were wearing “inappropriate outfits” and had “behaved inappropriately”.

The Islamic establishment in Iran does not allow any mixed-gender sports activities.

Professional-level yoga teaching is also banned in the country.

Israel protests: Thousands rally against Netanyahu immunity Thousands of Israelis gathered for a mass rally against moves to grant Prime Minister Benjamin Netanyahu immunity from prosecution.

Protesters amassed outside a museum in Tel Aviv for “pro-democracy” demonstrations organised by Israeli opposition parties.

They accused Mr Netanyahu of trying to pass legislation that safeguards him from corruption cases. Mr Netanyahu was elected to a fifth term as prime minister in April.

However, he could be indicted on fraud and bribery charges in the coming months.

Saturday’s demonstrations were the first held by opposition parties since Mr Netanyahu’s election victory. Organisers said that tens of thousands attended the protests, but no officials figures were released by police.

‘Sabotaged’ tanker in Gulf of Oman leaks oil A sizeable oil slick has developed off the United Arab Emirates in waters where tankers were damaged on May 12th.

Finnish company Iceye says one of its radar satellites detected a long trail leading from the Saudi-flagged vessel Amjad two days after the incident.

The crude oil tanker and three other ships suffered damage while anchored outside the port of Fujairah. No-one has yet claimed involvement in the incidents, and it remains unclear what happened.

US investigators reportedly believe Iran or groups it supports used explosives to damage the ships - but no evidence has emerged to show that Iran was involved.

The event occurred amid rising tensions in the region. UAE and Saudi authorities have released few details about what happened on May 12th and an inquiry is under way.

AMERICA Insurer First American left nearly 900 million sensitive customer files exposed A leading US real estate and mortgage insurer, First American Financial Corp., left a vast number of digital documents vulnerable, including many containing social security numbers and bank account information.

The documents were left without password protection or other encryption, according to a post from the popular cybersecurity blog Krebs On Security, which is run by journalist Brian Krebs. The information had been hosted online since at least March 2017, according to the post, and nearly 900 million files may have been exposed, though it is not clear if any were improperly accessed.

Some of the documents included bank account numbers and statements, mortgage and tax records, Social Security numbers, wire transaction receipts, and drivers’ license images, according to the Krebs post.

US groups sue Alabama over ‘extreme’ abortion ban The American Civil Liberties Union (ACLU) and Planned Parenthood, an abortion and healthcare provider, have sued Alabama over its ban on abortion. The groups called the law “extreme” and a “manmade public health emergency”. The ban, which offers no exceptions for rape or incest, was signed in late May but has not yet taken effect.

Randall Marshall, executive director of the Alabama ACLU, said: “Abortion remains - and will remain - safe and legal in Alabama. With this lawsuit, we are seeking a court order to make sure this law never takes effect.”

Under the new ban, physicians who provide abortions could go to jail for up to 99 years, but a woman seeking the procedure would not be criminally liable. The law allows exceptions only if the mother’s life is seriously at risk or the foetus has a fatal complication.

US judge blocks funds for Trump border wall plan A US federal judge has temporarily blocked the use of defence department funds to build a border wall between the US and Mexico.

The judge granted the injunction to block the use of $1bn (£786m) in Arizona and Texas because it had not been approved by Congress.

President Trump declared an emergency earlier this year, saying he needed $6.7bn to build the wall as a matter of national security.

About 20 states, along with groups including the American Civil Liberties Union (ACLU), have filed lawsuits to try to stop the president using the emergency declaration to bypass Congress.

However, despite the ruling President Trump could still find funds from elsewhere to build the wall.

Harvard racial admissions trial begins A trial against Harvard University has begun in the US, and may have wide-ranging implications for universities and racial minorities.

The case was brought by a group that claims Harvard’s admissions office discriminates against Asian applicants in order to boost other racial groups.

Harvard disputes the claim and says race is only one small factor in their secret student selections process.

The trial is being seen as a referendum on affirmative action hiring practices.

Harvard is one of the top-rated and most selective universities in the US, admitting about 1,600 freshman students out of 42,000 applicants each year.

Before the trial opened in a Boston federal district court, groups of protesters took the streets in the city, either opposing or supporting an admissions policy that includes race as a factor.

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ECONOMIC DELIVERY South Africa Post Office chevron-square-right www.postoffice.co.za phone-square 0027 12 407 7000

When a system is in jeopardy, you can either give up on it, or you can start again. The South African Post Office is not only on a road to recovery, but through a new appreciation and application of the team and assets at its disposal, it is reaching to be better than ever before. We spoke with Mark Barnes, the country’s Post Office CEO, about how he plans to not only improve the entity itself, but through doing so, the lives and opportunities of South Africa’s poorer population.

Written by Alice Instone-Brewer

I

n 2015, the South African Post Office was faced with challenges. The system had become synonymous with delays and errors, and was operating at a substantial loss. A continuous cycle had set in, where underachievement would lead to a reduction in investment funds, which in turn would lead to a further decrease in efficiency. Come 2015, the government conferred on what was to be done, and decided to downsize the stateowned postal operation. However, investment banker Mark Barnes had another suggestion.

In pitching it to them, he found himself the new CEO of a system that desperately needed turning around – but he thought he knew how to do it.

“I put it to the government when I met with them then that the post office business wasn’t just about post – it was about an established and commercially irreplaceable infrastructure and footprint that could serve multiple purposes between the government and its citizens, and between business and people. What we had was a unique set of regulations over us and a unique footprint that was not being leveraged.

As a company, the post office is asset rich (it has lots of properties) and has an extraordinary footprint, and yet was failing.”

Endeavour Magazine | 13

SOUTH AFRICA POST OFFICE

At the time when Mark stepped in to the role of CEO, the Post Office was operating at about 55% of acceptable delivery times. In 2014, an industrial action that lasted four months became the tipping point for many; after not receiving their mail for this long, those of South Africa’s population who could afford it started turning to private sector alternatives. This led to a dramatic 30% reduction in the Post Office’s turnover: “Any company that loses 30% of its revenue is going to go into a dramatic decline.

We lost market share, we lost people, and we lost that turnover. So, we had to start again.”

The negative fallout didn’t just affect the Post Office and the 25,000 people in its employ, however – it affected the population at large. Without successful mail delivery, lives come to a stand-still; those who could afford alternatives were greatly out of pocket by doing so, from businesses to individuals, but those who could not afford alternatives were stuck.

14 | Endeavour Magazine

Without a state-provided, price-regulated mail service, with locations available to even the most remote communities, people are left to fall unsupported through the cracks of the private sector.

“As a government entity, the Post Office answers to a set of universal service obligations, by which we are required by law to have a minimum number of representatives per capita in various regions. You should be able to find a post office within a certain distance of where you live. We need to run a financially sustainable service, but we also need to make postal services accessible to all of the citizens in our country.”

“South Africa has a very economically divided economy, and the inequality between the ‘Haves’ and the ‘Have Nots’ is probably the widest in the world.” The Post Office was obliged to provide an accessible service for all people, and Mark refused to see this obligation fail, describing the possibility as an “unacceptable social and economic outcome, unless you do something about it.”

Mark felt that through his proposed growth strategy, he’d devised a way to save not only this essential state service, but in doing so, to create and improve further support systems that would increase economic freedom in the country and help to bridge the economic gap.

This belief in economic equality was his main motivation when he brought his proposition to the government, but he got more than he bargained for: “I didn’t come looking for the CEO position. I just came to tell them what I thought they should do, and they said ‘Well, why don’t you do it then?’ I couldn’t really say no.”

To turn around the fortunes of the Post Office system, two major changes needed to take place: the system needed to be made more efficient, which would take time and funds, meaning it also needed to diversify and develop its revenue base. Other post offices around the world have these diversified revenue streams, but South Africa’s Post Office was focused primarily on traditional post.

One of the avenues Mark wanted to branch out into was to sufficiently meet the logistical

About FSS / Who is FSS Financial Software and Systems (FSS) is a leader in payments technology and transaction processing, offering a diversified portfolio of software products, hosted payment services and software services built over 27 years of comprehensive experience across the payments spectrum.

FSS, through its innovative products and services, caters to the wholesale and retail payments initiatives of leading banks, financial institutions, processors, merchants, governments and regulatory bodies. Its endto-end payments suite powers retail delivery channels such as ATM, POS, Internet, Mobile and Financial Inclusion as well as critical back-end functions such as cards management, reconciliation, settlement, merchant management and device monitoring.

Headquartered in Chennai, India, the company services 100+ customers across the globe, which include leading public and private sector banks in India and some of the large Banks, FI’s, Processors and Prepaid Card issuers are customers of FSS across North America, UK/Europe, ME/ Africa and APAC and has a team of over 2500 experts serving the clients across the globe.

FSS Technologies SA (Pty) Ltd is a wholly owned subsidiary of Financial Software and Systems (Pvt) serving clients on the African Continent form its Head Office in Rosebank, Johannesburg.

The Africa team is headed by The Regional General Manager: Africa, Rishi Pillay who together with his dedicated team of seasoned Payments and Banking

services specialists, have decades of experience in these sectors.

In addition to the South African Regional Head Office, the Africa team comprises representation and offices in East Africa (Nairobi) Central Africa (Brazzaville and Kinshasa) and West Africa (Douala) FSS services a number of major Banking clientele across regions through its diverse range of Hosted and Licensed product offerings and is growing exponentially due to these relationships as well as a number of significant strategic Acquisitions and Alliances which have recently been concluded.

A prime example of FSS matching its Products, Services and Expertise to a stated Requirement, is the South African Post Office - Postbank Integrated Grants Payments System or IGPS Project.

After a rigorous and thorough Tender process, the dynamic and progressive team at the South Africa Post Bank identified FSS as the ideal Vendor to partner with, for this project of National importance.

What FSS does for the South African Post Office – The FSS /SAPO Collaboration Choosing the right technology partner for managing grant cards was extremely strategic and a crucial determinant for success, in addition to technology-related competence, the Postbank needed to be assured of the vendor’s viability in terms of financial stability, quality of support, alliances and partnerships and management performance.

SAPO selected FSS ahead of a number of national as well as international vendors as FSS fulfilled its criteria on all fronts. FSS submitted a proposal that reflected its experience as a large-scale payment processor and a seasoned partner committed to long-term success of the project throughout the contracting process.

The choice of FSS as a technology partner was determined by: • Three decades of leadership in the payment’s domain, assuring long-term project sustainability.

• Demonstrable and extensive experience in implementing similar large-scale greenfield as well as replacement projects in a time-bound manner.

• Its status as a Globally respected organization -Issuance of 500M cards globally across 25+ large banks.

• Local presence in South Africa with on-the-ground experienced payment personnel for support.

• Rich system functionality and superior architectural design.

• Meticulous Compliance with FICA requirements FSS Integrated Grant Payment System (IGPS) is a complete solution that addresses all aspects of the card lifecycle from application processing, account management through renewal or account closure. The system supports customer registration with KYC and FICA documentation, integrates with biometric systems for verification, maintains beneficiary account information, manages the lifecycle of the beneficiary account as well as administration and reporting.

The FSS solution is unique as it integrates three functional components into a single solution.

This includes: • Debit CMS: Card issuance and generation • Lightweight Core Banking System: Maintains virtual accounts mapped to the card, eliminating dependency on the Core Banking System • Transaction Processing Engine: Interfaces with the SASSA system to receive load files for mapping beneficiary accounts as well as BankServ to acquire transactions originating from multiple channels The proposed architecture significantly optimizes IT footprint, lowers management overheads and slashes operating costs, as it has zero dependence on the Core Banking System for maintaining account information.

The SAASA branches initiate a request for issuance of non-personalized card numbers using the IGPPS branch portal. The request is processed by the Debit Card Management System (CMS). The Debit CMS instructs the lightweight CBS to create virtual accounts. On account creation, the system generates the card number and the account number and transmits the information in an encrypted file to the vendor for print and dispatch of cards to the branch.

FSS IGPS interfaces with the SAASA system to transmit information on new account creation at the end of each day. On a designated day of each month, IGPS receives a file for loading beneficiary cards. The IGPS system

interfaces with BankServ Africa, the national ACH, which enables local interoperability for acquiring transactions over ATM’s and POS. The Delivery and Impact FSS implementation expertise gained from large-scale projects for Central regulators and Tier One banks helped the South Africa Postbank successfully rollout the service within five weeks. As per agreement, the Postbank commenced payment of grants on 1st April 2018. without any disruption. This has helped in rebuilding beneficiary trust in the service. Currently, SAPO and SASSA are enrolling 800,000 beneficiaries daily on the new system.

“At the centerpiece of the country’s social policy, there was a lot at stake for the Government, for SASSA, for us and, most important, for beneficiaries. The short time-frame for service rollout posed a challenge. Any delay in launching a service on which millions of poor beneficiary households are reliant would have severely damaged our credibility. The FSS team’s expertise and commitment to ensuring the success of the project allowed us to rollout the service smoothly on the date we committed to SASSA and the nation. That we could go live within five weeks is a perfect example of big ambition meeting effective execution” Significant Cost Reductions An Integrated Grant Payment System combining the Card Management and the Lightweight CBS modules helped SAPO offload traffic from the Core Banking System. This resulted in significant savings monthly, enabling the agency to spend its budget allocation more effectively in the future, making a meaningful difference in the lives of beneficiaries Optimized Developmental Outcomes FSS via its long-term partnership is successfully helping the Postbank improve the efficiency of the Grants program. The successful launch of the service has helped the government to reestablish trust in the program. More importantly it is enabling the underbanked to move up the financial ladder and reduce usage of cash.

As part of its agreement, FSS is working with SASSA and SAPO on widening the scope of (electronification)?? of payments.

Current SASSA cards, for instance, allows the card number to be printed as a bar code. This paves the way for wider POS acquiring at an extremely low-cost. Any merchant, equipped with a basic mobile phone, and a barcode reader can function as a payout point to accept transactions.

FSS is confident that as the Vendor and Technology partner of choice for the SAPO and the Post Bank, a long, successful and mutually beneficial relationship has been forged and together more significant advancements will be created to enhance the efficiencies experienced by customers of the SAPO. For further information on the SAPO IGPS Project or on FSS Technologies SA (Pty) Ltd please feel free to reach out to: Rishi Pillay Regional General Manager: Africa + 27 62 021 0151, + 27 87 809 4331 rishipillay@fsstech.com

SOUTH AFRICA POST OFFICE

demands of eCommerce. “Parcel revenue is booming, so much so that I’d argue that post office infrastructures around the world underestimated the systems and investments they’d need to keep up with the way that people are shopping online.” Physical letters may be being replaced by email and social media, especially with companies striving to be greener by sending out less paper mail, but online shopping is only on the rise. Out of all of the private sector logistics companies in South Africa, none have the physical footprint or the legal advantages of the Post Office, so Mark saw no reason why the state system couldn’t rise to the task: “South Africa has many small populations dispersed over a large geographical area.

There’s only one institution in all of these areas, and that’s us. Additionally, as a state owned and regulated entity, we have the right and obligations to clear customers, and we have the right of access to the airport and harbours.”

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These advantages should not only allow the Post Office to operate efficiently in this area, if run correctly, but also put it in a strong position to make mutually beneficial partnerships with private courier companies, rather than losing business out to them as it did in the past.

“Africa is the fastest growing population in the segment: instead of relying on Alibaba in the east and Amazon in the west, should we not be developing our own eCommerce platform?”

The Post Office will finally be launching said platform within the next few months.

Letters and parcels are only the tip of the iceberg, however: again looking at the asset that is the Post Office’s physical footprint, Mark sees no reason why it can’t move into absorbing work such as the issuing of government documents and renewing driver’s licenses, and even the delivery of chronic medicine, rather than people in remote areas needing to travel into Johannesburg for said essential medicine every month. He has even expanded

ECONOMIC DELIVERY

the Post Office into delivering digital television capabilities to people still using analogue technology. Before working towards any of this, though, initial investment funds were needed, and belief needed to be restored in the Post Office, both externally and within the team itself. An efficient team and a well-built and funded system are a circular pair of needs, but positive change had to begin somewhere.

This cultural change within the workforce was one of Mark’s greatest challenges.

Working within a declining organisation, staff had become demoralised, and when such situations have spread company-wide, it takes more than a change of management to reverse the damage: “If you walk into any organisation that has manifestly failed, which the Post Office had, you find extraordinary issues. People would prefer to fail collectively to standing up and showing their ability to succeed. You don’t want to be the guy who shows everyone

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SOUTH AFRICA POST OFFICE

else up. We had to say, ‘Ok guys, it’s alright to succeed.’”

A mentality of under-achieving had developed, with staff seeking to pass problems along to another department rather than initiate a solution themselves. This mentality does not necessarily indicate poor staff, but rather, poor management, and with encouragement, Mark found that this same team were eager to turn things around. He didn’t attempt to resolve this issue from a distant office – instead, he started from the lowest levels of the organisation upwards, spending face-to-face time with his new employees: “People had gotten so used to being blamed and down trodden. By walking around and listening, I found a quality of persons far better than they’d been judged.”

Through the introduction of fair rules and personal attention to detail that encouraged and rewarded initiative and success, the tables started to turn. “Whenever something good happens here, I phone the person responsible,

20 | Endeavour Magazine

no matter how long that takes.” This sort of recognition began to shift the mentality, and the ability to achieve once more seemed a possibility. However, this change still needed to be supported by actual resources, and the Post Office was operating at severe losses. Mark tried requesting funds to invest in new sorting centres and other upgrades to the mail itself, but couldn’t receive funding for this when faith in the Post Office was so low. What he and his team could receive funds for, however, was the setting up of another revenue stream – financial services.

“It took 18 months, but we have now taken over the payment of social grants in South Africa, which is a massive business that was previously conducted by the private sector.

We couldn’t receive funds to develop the Post Office, but we could receive funds for and from this, as it is an essential system in South Africa.

We pay 11 million beneficiaries about ZAR10bn a month, and that big piece of economics is

ECONOMIC DELIVERY

now being drawn back into the postal circle.

The income we derive from that, which was previously paid out to the private sector, forms the capital with which we can upgrade.” These social grants give government support to those in the population who are in need, and rather than the profits of this lining private sector pockets, they are now re-invested into other systems that are seeking to improve lives – both the postal system itself, and Mark’s other, main project.

These social grants are paid out by the Post Bank, a financial division of the South African Post Office that is soon becoming a whollyowned subsidiary. Mark’s second in charge, Chief Operations Officer Lindiwe Kwele, is responsible for the operations of the social grants payments and the postal system. “We are now expanding our financial services to the people that bank with us, and significantly growing the people who bank with us rather than regular commercial banks. We’re still not

in the lending business, just the transactional business, but we are applying for a lending license. Once you’ve got an integrated payment system, that system can be applied to any payment between government and its citizens.”

Through this bank, Mark aims to not only fund the physical Post Office services, but to achieve the real motives that drew his interest and inspired the speech he made to the government: “The main reason I came here was for the Post Office and Post Bank to play a role in new banking models that seek to address the economic inequality in our society. We come from a divided society, and we have a huge unbanked portion of the population who don’t have assets, and so can’t raise money. That is very old-fashioned thinking.”

This old-fashioned thinking does not line up with the way that many South Africans live, and so they aren’t able to access beneficial loans. “A lot of our people live in townships and informal settlements, and inside these settlements are

Endeavour Magazine | 21

SOUTH AFRICA POST OFFICE

a lot of micro enterprises like barbers, shops and many forms of small traders.” Traditionally, many people in these areas don’t have the spending track record or the traditional assets required to receive a business loan or similar support from a bank, but Mark wants to change this. “Technology now allows you to oversee any particular account. So, if you are operating as a small enterprise selling milk within your community and generating predictable income, we could incrementally advance you money to your business to warrant you the opportunity to grow, without you owning any assets.” By monitoring that the funds are being invested into the business, and not spent elsewhere, the Post Bank would be able to support these small businesses that a private bank would deem too small or too informally placed to deal with.

Through this, Mark hopes to enable and empower businesses and individuals in these areas. The micro traders are just one

22 | Endeavour Magazine

of many examples of people with unofficial but technically bankable streams of income; another that Mark shares with us is the landlord or landlady who lets out two of their three rooms in an home that their family has lived in for generations but could not obtain a title for due to past property ownership discriminatory laws. Again, this is a stream of revenue, but not one that a traditional bank would recognise.

These existing systems simply don’t work in acknowledging the way that much of South Africa’s population lives. “What I’m trying to do here is create a pervasive state asset that can commercially, using modern technology, bridge the economic divide.”

This isn’t to say that such individuals absolutely couldn’t obtain a loan, but without assets or security, the rates available to them are extortionate. “In a divided society, the unit cost of consumption is highest for the poor. They borrow money at costs which are self-evidently not affordable. We, as an organ

ECONOMIC DELIVERY

of state, can make credit an enabler and not a destroyer.”

Other changes that Mark wants to see come into effect include group savings accounts that allow families or communities to pool their funds, and a move to promote, educate on and spread the use of digital payments in such areas, which would allow individuals to spend their digitally-handled social grants in the shops that they actually frequent.

Getting all of this set up is a slow process, and involves competition and tension from the existing banking sector, including Mark’s old contacts. “I’m not always the most popular kid on the block, but if you’re doing the right thing, that’s all that matters.” The Post Office is still growing and recovering from what it was; whilst its efficiencies are improved and its new revenue streams are growing, it will take some time before it is turning a profit. “That’s alright by me. These things take time to build and the reward of extending services to the poor

is much sweeter. We are fortunate to have a vibrant Minister and a board that are fully behind our vision.”

Mark speaks passionately about the potential of the Post Office and his vision for it, and we can see why. If a dwindling state entity can not only be revived, but in doing so, can make such a positive change for entire segments of the population, then that outcome is worth every effort poured into it. Assisting an economy in this way has a ripple effect, from individuals to communities and to the country as a whole. “When you start to talk about an enabled economy with the prospect of individual economic dignity, you’ll understand why I came here – it wasn’t only about making the post arrive on time.”

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ALL-INCLUSIVE CHANGES NOMAD Tours chevron-square-right www.nomadtours.co.za phone-square 0027 21 426 5445

As befits its name, Nomad Tours never stands still. We caught up with company founder Alex Rutherford once again, to get the latest on this ever-evolving tour company’s most recent developments. We got more than we expected: what Alex shared with us this year described a change not only for his clients, but potentially, for the entire African group tour trade, with Nomad blazing the trail.

Written by Alice Instone-Brewer

N

omad Tours never seems to take time off. The tour company provides a variety of travel packages around Southern and Eastern Africa that allow visitors to explore the continent’s beauty, both natural, historical and modern, in a variety of ways that cater to everyone. Its vast range of available tours and travel styles, and the company’s welltrained and friendly guide and support staff, have long marked it out from its competitors and, as always, it is still at work growing and improving what it offers. We spoke with Alex Rutherford, company founder and CEO, about the various changes his company is celebrating this year, from acquired assets to new services, and something far more revolutionary.

As implied by their name, Nomad Tours are about being on the move: “Most tour companies are destination companies. It’s as clichéd as it comes, but we’re about the journey, not the destination. We cover the destinations, but the experience is also in the travel.” Whether you opt to camp or to stay in accommodation along the way, Nomad Tours puts an emphasis on making the experience of traveling through Africa as rewarding as possible, from its highquality tour vehicles to the routes they take and the attitude they foster. “It’s meeting people, Endeavour Magazine | 25

NOMAD TOURS

moving – that road trip vibe. Several people have even met each other and come back to us years later with kids!”

That said, even the hardiest of campers want to end up somewhere comfortable to recuperate at the end of their trek, and Nomad Tours has always seen to this need by beginning and ending its tours at a high-quality hotel in a tourism-rich area. Like its stops along the way, sometimes these hotels are run by other companies, but recently, Nomad has invested in a new property of its own.

The company currently owns a property in Johannesburg, one of its operational hubs, and has now acquired one in its other main hub, Cape Town. Like Goldilocks, Nomad searched Cape Town for a location that wasn’t too big,

26 | Endeavour Magazine

but wasn’t too small. Predictably, there is a great deal of accommodation available in the capital, so Nomad was also searching for something with a little difference. It finally found that in a four-star hotel with an original Art Deco design, combining clean minimalism with some iconic, decorative features. On top of this, the hotel is located right in the middle of Cape Town; all in all, it was a perfect find, so in Alex’s words, Nomad “jumped on it”.

Nomad has many initiatives that set it apart from its competitors, from its customised tour vehicles that it builds in-house to its flexible and wide-ranging list of activities and locations. One tour style that the company has been developing for some years is the “Big Five and Dive”, which combines diving and safari for the ultimate experience of Africa’s wildlife.

Whilst this is a concept that the company has marketed for a number of years, it has taken some time to catch on, as it is not a way of experiencing Africa that serious divers are used to. However, recently, it has taken off: “Traditionally, divers only really do two things: they either stay at a resort and dive, or they stay on a boat and dive from there. So, Big Five and dive was a strange concept for a lot of them.

We struggled for a few years to get it moving properly, and then last year, the momentum just suddenly started, and it’s exploded. Over the six months from November to March, we’re going to probably run around 40 tours of 15-20 people each, which is quite an improvement from maybe ten tours a year.”

The Big Five and Dive tours allow tourists to see the famous ‘Big Five’ of African wildlife (lions, leopards, rhinoceroses, elephants and Cape buffalo) as well as engaging in advanced underwater exploration. This isn’t for entry-level divers – these tours go to specialised locations, which is why they have needed to wait for the serious diving market to come around to them. As well as offering more to the divers themselves, this tour style also offers more to those who travel with them: “Often, the diver’s partner isn’t a diver themselves, so they’re left stranded whilst the other person is having a great time. These tours have been built so the partner has activities of their own – safari and

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excursions – while the others are diving.” Diving season (November to March) is Nomad’s ‘off’ season, meaning that they have the staff and resources available to cater to these tours, and will greatly boost their profits from this portion of the year if interest continues to grow.

Traditionally, Nomad Tours offers the ability to explore Southern and Eastern Africa through either camping or accommodated treks, offering their custom-designed tour vehicles and overseeing everything themselves. This level of guidance and control came from Alex’s desire to share his love of Africa with the world in a safe, secure and smoothly-run way – a dream that was inspired when he saw the state of the industry a little over a decade ago. “In 1996, I did a trans-Africa tour from London to Cape Town, where I met some of the UK companies, and back then, it was very Wild West. I looked at what was going on with some of these tours and it was not good. So, I thought, ‘There’s a gap in this market for someone to do this properly.’”

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This responsibility has become a defining aspect of Nomad Tours, covering everything from highly-trained guides to carefully constructed vehicles and close relationships with the locations and venues that tourists are taken to experience. Now that this culture of safety is in place, however, Alex has found that increasing numbers of tourists want to set out on their own – especially as Africa becomes a better-known entity. Responding to this need, Nomad now offers the service of assisting in the planning and booking of a self-driven tour for couples and small groups who want to go it alone. However, like their supervised tours, these are run carefully and with security measures in place: “Having a guide with them is an option. We’ve got about 100 tour guides, so we’ve got plenty available for those trips. A big part of it, either way, is that we’re of course on standby. They have a number they can call if there’s any drama, because we know the people who know how to solve problems.”

ALL-INCLUSIVE CHANGES

“I’ve shied away from this style of tour in the past because, to be honest, it’s overtraded. There’s a lot of middle men, the markup is high, and the value is questionable sometimes. However, the demand has been on the increase.” In order to “cover the back door”, as Alex put it, Nomad conceded that it was better to offer this option, and to do it well, than to compete with it. Its strong bonds with the locations that visitors can book, and with support services in the area, mean that visitors can trust in where they are choosing to travel, and that a safety net exists for them, if needed.

In the past, Nomad may have defined itself by its physical presence, fleet and resources, but what it really trades in is local knowledge.

“We’re specialists in Southern and East Africa, and the question has always been ‘How do you want to see that?’ We’re just extending that conversation.”

One area that Alex has no desire to expand into, however, is vehicle hire. Expanding into

Nkambeni Safari Camp, part of the Echo Africa Group, is a hidden gem within South Africa’s Kruger National Park. Guests can enjoy guided drives and bushwalks around 12,000 hectares of private ‘Big Five’ concession, as well as comfortable, accessible 3-star accommodation. Established by the Nkambeni community themselves, the camp is dedicated to low-impact, green tourism that preserves the park and supports its people; an ethical, sustainable way to safari.

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Endeavour Magazine | 29

NOMAD TOURS

this side of the business would be a completely different animal, requiring huge investment in assets and locations, and entirely new logistical considerations. Instead, the company subcontracts and helps holiday makers to hire vehicles from reliable local providers.

However, Nomad’s starting point and greatest source of pride has always been its group tours, and it is in this area that Alex has made his greatest development. Pricing for tours such as these has long operated in a curious way. When this type of travel began some 30 years ago, it was difficult to send money abroad, and so payment for tour packages would break down into two halves: one half would be paid to the travel agent in a holiday maker’s own country, and the other half would be paid in Africa. This ‘local payment’ would not always happen in one go, however: more often, it would actually be made in multiple payments, to the guides, venues and caterers themselves whilst travelling. This is not an optimum way to

travel when on an organised tour, where one might expect everything to be paid for and taken care of already. “It’s still a messy situation, and it’s confusing to a customer. It’s misleading, in that you look at a price and it’s not the price. You find people running out of money, or needing to switch to their credit card, and they’re not happy about it.”

As technology has advanced, the difficulty in sending money abroad has been resolved, and yet the system that evolved 30 years ago has remained. This outdated and stressful system is no longer necessary, and Alex wanted to see it resolved. However, long-established practices are hard to re-write: “The commission structure was very high on the base price – much higher than anything else in tourism. So, that legacy has dragged along into the modern era with most companies.”

To combat this, Nomad decided to offer an all-inclusive tour, where clients truly could pay for everything up-front, with no hidden

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NOMAD TOURS

or surprise costs. The commission structure made this aim difficult, as did the organisation and agreement needed between Nomad and the various companies it works with.

“We’ve gone in incremental steps, with a lot of hard negotiating with suppliers, because it’s guaranteed business. A lot of modern companies don’t force this local payment – people can choose not to include it.” In an allinclusive deal, local suppliers do not risk missing out on these payments, and so signing up to the plan made financial sense. However, there were a few surprising factors that threatened to make Alex’s plans fall short of his vision: “My goal was to be all inclusive - that’s first prize. To say that you’re ‘more inclusive’ than someone else isn’t as strong as ‘all inclusive’. In this industry, no-one else offers all-inclusive – it’s not an option. So, we broke down what we needed to make that final split, and it didn’t boil down to a lot. It came down to, believe it or not, meals, certain add-on activities, and

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water.” By removing activities that may not appeal to everyone and calculating the cost of meals, Nomad was able to pull everything together. The only hurdle left was water.

“It sounds ridiculous, but it’s quite a factor.”

Nomad provides water, but clients often choose to buy bottled water instead, which is an added expense for them, and an environmental issue that Alex has tried in the past to avoid. “We make sure that the water they have access to is safe, but people want to have a sealed bottle.

You can imagine 20 people, on 50 vehicles – that’s 1000 people – buying plastic bottles every day... it’s horrendous.”

Alex wanted to cut down on this plastic waste, but found that providing free, clean water wasn’t enough: people needed to see evidence that what they were drinking was safe. “Most people agree with the principle - they just want an answer that satisfies their other concerns. So, we’re going to give it to them. We’ve designed and built onboard water

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ALL-INCLUSIVE CHANGES

purification from a sealed source. So, they’ll be able to see that their water is actually purified onboard, with them, in the travelling area. That should stop the plastic story.”

Absorbing the local payment into the package price does mean that Nomad’s tours have, at a glance, gone up in cost, though in reality this streamlining will not only save their clients stress, but funds. Still, there is the risk that some bookings will be lost, if on the surface, Nomad seems to be priced higher than its competitors.

“I’m hoping the pluses will outweigh the minuses. We’ll lose some bookings, obviously, but I’m hoping we’ll gain bookings as well. We’ll stand out from the crowd, which is what we’ve always tried to do.”

Nomad has always strived to provide the best customer experience possible, and this is what has marked it out from its competition year after year. With this change, clients will have a smoother experience than ever before,

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NOMAD TOURS

and that is sure to attract not only new clients, but will keep bringing previous clients back.

Nomad already enjoys a high level of repeat business, which speaks of its competence and quality more clearly than anything we can say: “We get a lot of repeat business – a huge amount. I’ve got a lady on tour who’s on her eleventh tour with us. There’s a lot to see in Africa, and we do cover a lot of ground, so you can quite comfortably come and do three, four, five different tours and see completely new things on each tour every day. And, Africa has a bug about it. When people come here, they come back. It’s not a one-off destination.”

Africa is not a one-off, and neither is Nomad. Alex may credit the draw to return to Africa to the continent itself, and whilst he’d be right, it is Nomad who allow people to safely and enjoyably experience these sights time and again. The company’s genuine love for its continent and its clients, and its constant efforts

34 | Endeavour Magazine

to stay fresh and up to date, all keep Nomad Tours set apart from the crowd. Alex joked that he’s finally slowing down in how many changes he has to tell us about, but from what we can see, he’s as busy as ever, working to provide clients with the best tours the company can provide, whilst striving to perform at an ever-greater standard.

AMAZING WORLD

JELLYFISH LAKE

by David Kimberley n a quiet corner of our planet sits Eil Malk, As one would expect from the name, this one of some 250 mostly uninhabited lake is home to two species of jellyfish, millions islands found in the Southern Lagoon of of which migrate across it daily. The Golden Palau, located between Koror and Peleliu. This Jellyfish that inhabit the waters of the lake are densely wooded island is only 6km long and closely related to the wider-spread Spotted 4.5km wide, devoid of human settlements, Jellyfish of the lagoon around them, yet are although explorers did find the remnants of classified as a different subspecies due to how an abandoned village there dating back over they have evolved within the lake’s confines.

500 years.

They have lost both their spots and their clubs, There are a number of small lakes on the an appendage found on the lagoon jellyfish. island, but one stands out as more famous than The Golden Jellyfish’s neighbours in the the rest: Jellyfish Lake, located near to the east lake, the Moon Jellyfish, are so-called as they coast. Connected to the ocean through fissures head to the surface of the lake when night and tunnels in an ancient reef, this body of falls to feed on the copepods found there. water is around 12,000 years old, which was During the night, as the Moon Jellyfish rise estimated by its 30-metre depth. It also boasts to the surface all across the lake, the Golden conditions different to the rest of the lagoon, Jellyfish can be found at the western end which has ultimately affected the species within the basin there, making repeated living there. vertical journeys between the surface and the

I

36 | Endeavour Magazine

chemocline, where they acquire nitrogen and other nutrients. While their neighbours do not have a set migration pattern, the Golden Jellyfish move to the eastern basin during early morning and back again in the afternoon.

This interesting pattern is theorised as being an adaptive or evolutionary change, driven by the fact that there are anemones located in the eastern regions of the lake that eat jellyfish. The Golden Jellyfish instinctively avoid shadows and so, as they move across the lake during the day, they also manage to stay in the light and avoid the anemones.

In 1998, there was a serious decline in the Golden Jellyfish population within Jellyfish Lake and, by December, it was believed that they had all died out. The cause of this disaster was determined to be an El Nino weather event that raised the water temperature and killed the symbiotic algae within the jellyfish, which they rely on to survive. However, in January 2000, scientists observed Golden Jellyfish back in the lake and, by May 2012, the population returned to pre-decline levels.

The Moon Jellyfish proved to be much more resilient, exhibiting some damage following the weather event in 1998, but their numbers remained steady.

It was inevitable that eventually, tourism would affect the lake and its peaceful inhabitants. Early attempts at scuba diving excursions proved to have dangerous ramifications for both the jellyfish and divers; bubbles from the scuba tanks harmed the jellyfish when they collected beneath their bell-like bodies, while an anoxic layer containing high levels of hydrogen sulphide was discovered at a depth of 15 metres, which could be absorbed through the skin of divers and may lead to death.

While scuba diving is now prohibited, snorkelling trips are a popular activity for visitors, who obtain access passes from neighbouring Koror and make the 45-minute boat ride to Eil Malk.

Although both species of jellyfish living in the lake have stinging cells, they are not powerful enough to seriously harm humans.

This allows visitors to swim freely amongst the myriad bobbing inhabitants for a truly unique experience. The only other consideration for those heading into the waters of Jellyfish Lake are saltwater crocodiles that are native to Palau, although they are not considered a threat to humans.

Safe within their home on Eil Malk, it is expected both the Golden and Moon Jellyfish will continue to thrive alongside one another.

Hopefully, they shall also thrive alongside the humans that come to view them, as long as visitors remain respectful and the push from tourism does not become too great.

Endeavour Magazine | 37

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TOMORROW’S RESOURCES Appia Energy chevron-square-right www.appiaenergy.ca phone-square 001 416 546707

Appia Energy Corp is a mining exploration company with two passions; exploration itself, and our technological future. We spoke with James Sykes, Vice President of Exploration and Development, about this passion, and the ways that Appia is setting itself apart from the competition in Saskatchewan.

Written by Alice Instone-Brewer

A

ppia Energy Corp is a Canadian mineral exploration company searching for high-grade critical rare earth elements (REEs and uranium in the Athabasca Basin area of northern Saskatchewan, as well as developing the Elliot Lake mining camp in Ontario.

The Elliot Lake mining camp is famous as being a historic global source of U3O8, or Triuranium octoxide. This uranium compound is one of the preferred forms of yellowcake, as it is easy to transport to refineries. Over 300 M lbs of U3O8 have been mined from Elliot Lake in the past, and Appia believes that much more still remains to be unearthed.

Meanwhile, the Athabasca Basin is famous for hosting the highest uranium grade mines in the world. Global uranium deposit grades average at ~0.1 wt% U3O8, but here, the averages exceed this. For example, both the McArthur River and Cigar Lake mines in this area (operated by Cameco) have average grades exceeding 20 wt% U3O8, making them host to the ‘richest’ ores in the world. Meanwhile, their Alces Lake property in the Athabasca Basin is showing very promising, world-class grades of REEs, making this location Appia’s Endeavour Magazine | 39

APPIA ENERGY

current flagship and most exciting piece in the company’s portfolio.

We asked James Sykes about Appia’s vision as a company, why it focuses on uranium and REEs, and what it hopes to achieve from these two locations:“We are hoping to delineate a sizeable resource (REE and/or uranium) that could be brought to the market. I like the philosophy of Appia, and why we work with REEs and uranium: both will continue to be needed as we progress into an energy-intensive and increasingly expanding technological society.”

“Rare earths are all about technology,” James continued. “They’ve been major players in technological evolution - that has pretty much been their application since day one. For example, Europium was used in the development of coloured TVs.” Europium phosphor was used to produce a brilliant red; prior to its use, the red on coloured TVs was weak, and so other colours had to be muted

40 | Endeavour Magazine

to work alongside it. With the use of Europium, every colour could be clearer and more brilliant.

“TVs don’t use Europium anymore, but rare earths all have their place in the emergence of new technology.”

There are 15 – 17 elements under the REEs umbrella, meaning that even within this resource, the demand for different elements changes and cycles. Today’s market is driven by Nd, Pr, Dy and Er, but this is subject to constant change. However, one part of this resource group that is always in demand is the rare earth magnet. “These magnets are the smallest out there and yield the most production and power,” James explained. These magnets are used in a variety of technologies, from electric vehicles, medical equipment and wind turbine motors to everyday items such as headphones and fridges, and even emerging technologies such as hover capabilities.

With an ever-growing reliance on technology, our planet also has an ever-rising need for power, and this is where Appia’s uranium operations come in: “I’m a firm believer in nuclear technology. It is superior price-wise, there’s no denying that, but if you just look at the environmental side, it is probably the safest form of energy resource out there. It has the smallest footprint - it’s basically zero carbon emitting - and is most efficient. I’m a big believer in renewables as well, but I don’t think they can sustain a base-load grid.”

Because Appia is dual focused, it monitors both the REE and uranium markets closely. In the case of REEs, this has been no simple tale: “Currently, China monopolizes the industry with over 80% of global REE mining and production, but more than 90% of the final end use fabrication of REE-applications.” This means that not only does China produce most of the world’s REEs, but it uses most of them, too. This led to the country deciding, in 2010 and 2011, to no longer export the resource.

“The price of REEs spiked tremendously. Due to the lack of supply, the REE industry was in dire need of immediate supply. This, in turn, led to companies seeking inferior alternatives to REE products.” Although the situation resolved itself a few years later, the damage was already

TOMORROW’S RESOURCES

done; as James explained, “REE end-users now see the real monopoly that China has on the industry, and are therefore looking for nonChinese supply chains, fearful that China could do the same thing again. The USA-China trade war also has companies on their toes.”

This is good news for non-Chinese REE exploration companies – especially ones who were operating at the time - as they offer a reassuring potential alternative. Appia is a relatively new player in both REEs and uranium, and its competition have the advantages that come from being longer established. Regarding REEs, investors were free with funds during the 2010-2011 crisis, and so these companies were able to benefit from that level of enthusiasm.

More recently, there has been little interest in REE investment, though Appia saw this attitude turn around a couple of years ago thanks to renewed interest in technology such as wind turbines and electric vehicles. “In those two years, we’ve witnessed investor sentiment

change in that they are very interested in our Alces Lake world-class high-grade REE project.”

It is this promising project that has Appia feeling confident: “We are the newest players to the game, with quite possibly the chance to have one of the world’s best REE deposit(s).

We know that the grades we are seeing at our Alces Lake project are world-class; we simply need to know how much is there.”

“Appia’s goal for the REE industry is to define an NI 43-101 mineral resource estimate for our Alces Lake REE project by the end of the year, and hopefully this will provide us with the beginning of a path to venture down for Canadian REE production.”

Turning to the uranium market, the resource’s price crashed and remained low ever since the Fukushima disaster, which also occurred in 2011. “It got to a price level so low that the world’s largest uranium mine supplies curtailed their operations in order to help lift the price, to make it affordable for the mines to continue

Endeavour Magazine | 41

APPIA ENERGY

operating. The price for converted uranium is also at a decade low. This whole scenario has set the industry for an uplift in all prices.”

Despite these challenges, and despite alternative energy sources both from fossil fuels and the increasingly popular renewable energies, James still believes in nuclear: “I think the next ten years will tell, but I can’t see nuclear power going anywhere - I see it continuing to grow. Even if it stays at a steady pace, at the same contribution, energy is growing in general. Given that, all things being equal, nuclear energy will grow as well.”

On both the REE and uranium front, one of the keys Appia feels it has to its advantage is simplicity: “The REE industry is complicated, and unlike many of our peers, we have simple mineralogy/metallurgy at Alces that uncomplicates a lot of potential mining and processing issues.” In part, this is because the REEs in this location appear to be hosted near the surface, which would greatly reduce

42 | Endeavour Magazine

the time, complexity and expense of mining.

James explained that many of the existing REE deposits that have been found, but are yet to go into production, face delays because the deposits sit within carbonite – a granite-like rock mixed with carbon minerals such as calcite, which means the REEs could be within up to three to four different minerals. This greatly complicates the separation process and makes it a more costly undertaking – amongst other things, it uses a great deal of water. Appia’s findings appear to not only be near the surface, but are of a tighter and purer concentration: “We’re getting outcrops of 16% monazite. It’s in these tightly controlled bodies that you can easily dissociate from the rocks hosting these systems, so the dilution factor is minimal. These are also coarse grains, so it’s the same minerality and density throughout, again making the work easier.”

Searching near the surface is a route to success that the company is also applying to

TOMORROW’S RESOURCES

its uranium exploration: “Globally, there are numerous uranium deposits that are waiting for the price of uranium to climb higher before they make an attempt to go into production.

We have one in Elliot Lake but need the price of uranium (and/or REEs) to climb significantly higher before we move that project forward.

For the interim, we are focussed on making a uranium discovery in the Athabasca Basin area, outside of the Basin itself (which really negates the mining engineering issues of the area), and looking for something that is close to surface.”

“Unlike our peers, who are all exploring in the sandstone rocks, and at least 200m below surface, we are exploring for near surface openpit mining deposits. The Athabasca sandstone is a geological engineering nightmare, and underground mining requires huge costs to develop freeze curtains. The most profitable mines in the area have been earlier open pit models.” Discovering deposits that would be more costly and complicated to put into operation would risk greatly slowly down Appia’s ambitions, as they aim to not only sell on their discovery, but to see it go into operation themselves, and with an underground find, this could take some time: “A number of uranium deposits were discovered in the 1970s that have not gone into production because they are deep within the sandstone. Case in point, Cigar Lake, which was discovered in 1975, didn’t go into operation 2016.” Appia’s peers are searching deeper because it is commonly believed that there are no more rich deposits left in easy-to-reach locations, but James isn’t convinced, and is willing to take the gamble.

James has been with Appia since 2016, and has held the position of Vice President, Exploration and Development since March 2017. Between them, the small leadership team has over 100 years of exploration and development experience in the industry to their name, and personally, James has over 550 M lbs Athabasca U3O8 discovery to his.

As well as their portfolio and their surfacefocused approach, James feels that what sets Appia apart is the company’s team, as well as their partnerships. Within the team, he

credits much of their success to the strong working relationship between himself and the CEO, Founder and President, Tom Drivas: “What has worked extremely well at Appia is the dichotomy between myself and Tom. Tom is an amazing entrepreneur and has an outstanding knowledge of business and financial effectiveness, whereas I represent the technical side of things, focussing on the best target areas within a very broad area and driving us forwards.”

“We also have some key investors that have been with the company for a long time, and even some of the new investors remain very bullish on Appia and are committed to following us on our journey. We feel that we have very strong and direct relationships with our investors, old and new.”

Between this teamwork and the promising areas that Appia is exploring, it seems likely that James and his team’s passion will pay off. The company is currently waiting on results from its latest drill sites; once the summer is over, it will have a better idea of exactly what lays within its project locations, but until then, it is confident in the grades and patterns that have been seen. All geological clues point towards success, and in this game, clues and strategy are what it really comes down to. “If you like doing puzzles, that’s what it’s all about. It’s all just a puzzle.”

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ANALYTICAL EASE Uniper Energy chevron-square-right www.uniper.energy phone-square 0049 211 73275 0

Headquartered in Düsseldorf, Germany, Uniper is an international energy company with a strong presence throughout Europe, as well as a presence in the Americas and Asia. In its own words: “We combine a balanced portfolio of technologically advanced large-scale assets with outstanding technical and commercial expertise. These assets and capabilities enable us to deliver flexible, bespoke, competitively priced energy products and services with agility, precision and speed.”

Written by Alice Instone-Brewer

W

ith plants and offices around the world and a team of 12,000 employees, this precision and speed relies on, amongst other things, highly efficient data handling, and this is where another part of Uniper’s operations come in.

As well as its involvement with power plants and energy services in every sector from gas to renewables, Uniper also offers ‘Enerlytics’ - analytical analysis for plant owners and operators that covers everything from market to plant activity.

Recently the company has given its data landscape a major overhaul, bringing it into the modern age and preparing the way for a smooth and seamless future. We spoke with René Greiner and Dr. Stephan van Aaken, VP, Data Integration and VP responsible for Digital Transformation of the Asset Business, about these changes and what they could mean for the company’s clients.

“In terms of data, we changed two things,” René explained. “First, we have tried to integrate all valuable data into one place, so the user has no trouble accessing it. Secondly, we have changed how we integrate data. In the past, we did a lot of traditional script writing and would build database connections case Endeavour Magazine | 45

UNIPER ENERGY

by case, which was very expensive and a great long-term effort that meant we lost traction.”

Taking too long conducting a case study can render the results useless once it is complete; at the very least, it is not an optimal way to work.

As Stephan put it, “The market moves quickly, and we need to quickly react, but in order to do that we need ready and correct data.”

To achieve this, Uniper drastically changed its data handling system, which René broke down for us: “Now, when we ingest data, we feed it into a catalogue that customers can easily search. We can label what the data is useful for, who owns what etc., and can set who has access to what, so that data governance becomes a matrix. For a user, all of this is just like a supermarket – you go inside and you pick and choose what you need.”

This ability to access data themselves is a game changer for Uniper. Instead of providing static reports or conducting lengthy case studies, Uniper now allows its clients to interact

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with their information themselves, running their own analytics to produce far faster and more personalised results. They aren’t left to fend for themselves; René and his team offer guidance and support, but their aim is to empower and enable clients to have fast and comprehendible use of their own data, no matter the scale.

As well as having a support team at the ready, Uniper’s teams have been aided in their use of this new system through the application of best-in-class, user-friendly software. Uniper uses Microsoft Azure’s Cloud services, which René praised highly in terms of speed and efficiency: “I often get the question, ‘How did you do this? How can I do this?’, and the first thing you have to do is go to the Cloud, because then you are serverless, you don’t have to worry about the administration of those IT tools - all the traditional problems just go away overnight.”

Software such as Shortly Talend and Databricks enable Uniper to record and configure data in a standardised way that draws different types of information in from multiple sources and allows them to interact with each other, and customers can then analyse these interactions using software such as Tableau. René suggested that this approach could reduce the cost of data integration for Uniper by up to 80%.

“Within a year,we connected 120 data sources to the datalink. We can integrate all types of data – there are no restrictions anymore, which means we can create a data economy where all of this information is in one place.” For storage, the company uses Snowflake, as it allows them to build multiple platforms that share seamlessly between functions. “For example,” René elaborated, “We’re now connecting energy generation and energy trading data together, because one produces the other.

This can be used for planning, communication to the capital market, closing etc. in ways that were never possible in the past.” This flexibility allows for analysis across departments, and even machine learning.

ANALYTICAL EASE

Introducing a new, self-driven, digitised way of operating may be a highly efficient innovation, but it can take time for people to grow confident with a new system. Uniper’s response to this is not to push their users onto the new product, but to make the option available to them, and to let them take themselves to it, offering support and encouragement where it is wanted.

“The moment we give the free choice to people to create their own future,” said René, “Then a good product becomes a better product. If you force people into a digital journey, it will not be successful.” The speed at which people are willing to try out something new varies from individual to individual, but in part, Stephan and René have found that this can be classified by what business they are in. Power generation, they explained, is a particularly hard enterprise to transition onto the new system, as the majority of the team need to use it in order for it to work in these

We help you every step on the journey to your serverless infrastructure in the cloud by putting all your valuable data into one place, feeding it into a catalogue to easily search and to satisfy your governance needs to finally have an analytics platform that gives you the insights you need.

Endeavour Magazine | 47

UNIPER ENERGY Industrial Process Optimization Software instances, Learning and it is typically an using Explainable Machine ferolabs.com

Minimize production costs Discover insights hidden in data to reduce emissions, minimize raw material By working with Fero Labs, Uniper usage, and optimize start-up.

significantly accelerated its data science Optimize maintenance schedules project cycles. The automated, easy-toForecast asset health into the future, use machine learning software - Fero optimize energy consumption, and revolutionizes the process improvement streamline maintenance operations. workflow of plants and makes ML accessible to everyone. With Fero’s explainable ML technology, users can discover new insights within readily available data, conduct root-cause analysis and achieve on average 6 to 11% improvement.

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area that is less receptive of change. “Traditionally, the generation business was about staying steady, keeping running and being reliable.” To assist in Category leader Explainable this transition where it isintaking place, ML Uniper sends personnel to a power station to sit The world’s largest industrial companies choose Ferowith theforstaff, spending and months its proprietary MLbetween technology.days The self-service software solution provides root cause explanations on the ground to answer people’s concerns and confidence with every prediction, allowing plants and get everyone confident with the way this to reduce operating costs by 6%-11% platform works. “Most ofincreased the time,” Stephan through efficiency. observed, “people are not afraid of the actual contact for a demo thing,Please but they areinfo@ferolabs.com afraid of what they imagine the thing could be. The process takes a lot of time, and a lot of patience, and a lot of listening to people.”

All this being said, last month, the company integrated a North American unit onto their new system without a single person needing to travel to the US, which again shows that different groups move at different paces, and one of the ways that Uniper has managed a successful roll-out is by understanding this. At

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ANALYTICAL EASE

first, only a few users moved over, but word spread, and now they have almost a thousand customers on the new platform.

The Maintenance Strategy Planning tool is an example of how useful this system is for the company itself. The efficient data management has enabled the company to review the maintenance of its plants and make moneysaving changes of up to 16% in some areas. This was achieved through, Stephan explained to us, combining data from trading and generation, which allowed them “to look at the past and the future of our business. Thereby they are able to optimize their asset management and therefore the money spend.”

This process would have been too lengthy before the Internet of Things was brought into play, as the data would have been collected and analysed in a much more manual approach. “It would take weeks and months to get it, and then if the situation changed, it would take weeks and months to re-discuss

René Greiner- VP of Data Integration

the whole situation, and now you can do it with a click.”

Another example of the system’s internal use is the ease with which Uniper can share information with other companies, such as Fero Labs. Fero Labs produce a machine learning software that focuses on plant optimization, meaning that engineers can create a digital twin of their plants to improve efficiencies, and are able to train multiple models on a daily basis.

Sharing the amount of data this would require is now simple with Uniper’s new system.

This type of internal application was not intended by the start – rather, it was the product of communication between Stephan and René. As Stephan explained, “At the time, I was responsible for the digitalisation of our asset business, which is a little bit of a longer process. I would say it’s like cleaning up the kitchen. René and I were talking as I was working on this, and I heard about what he was doing.” Stephan realised that René’s new

Dr.-Ing. Stephan van AakenVice President Asset ITArchitecture and Optimization

Endeavour Magazine | 49

UNIPER ENERGY

system sounded like exactly what he needed, and the two combined efforts. “I think that helps in an organisation, that the right people were in the right places, knowing and trusting each other already, and able to bring together the right ideas and technology.”

This isn’t to say that Uniper did everything alone, however. As well as the software that has been listed, the company used external analytics companies and consultants when they needed help with ideas and extra hands on deck. These companies included Confexx Consulting and Principal33 Solutions, the latter of whom stepped in to help with some programming that had the company stumped.

“We were getting confused, programming back and forth, and it just didn’t deliver,” Stephan told us. “We talked to Principal33 Solutions, who were already helping us in other areas, and they said: ‘Give us two weeks.’ They worked hard to do it and really impressed us, and really helped us out.”

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Realising that they had taken a wrong turn is all part of the experimental process that leads to idea development, but as both René and Stephan told us, such thinking is not common in the energy industry. For the development of the datalink, Uniper made an exception, and this cultural shift has continued to spawn benefits.

Compared to a physical project, a digital one doesn’t take as much financial investment, and so Uniper gave itself permission to try something new and, if it didn’t look promising in six months’ time, it would call it off. “Now,” René told us proudly, “we have almost 1000 customers running on this platform, we are ten times faster than traditional IT, we have more than 30 departments on board, and people are adapting to it and growing.”

This freedom to experiment, make mistakes and grow is not shared by all of Uniper’s competitors. “In many organisations, if a project is not successful, it is seen as a bad thing and people get demoted, and this is not

ANALYTICAL EASE

ok. Our spirit on this platform is to encourage people beyond limits, but therefore accept that sometimes things won’t work,” René told us. Stephan agreed: “I tell my team, if you’re a race car driver who’s never crashed a car, then you shouldn’t be there, because you’re not going to the limit. It’s ok to crash the car. Try not to kill yourself, don’t overdo it, but it’s ok to go beyond. How will you ever get better if you don’t try to push your limit?”

This attitude has led to not only the development of this platform, but branching off from it, many other innovations as well. For example, René told us that Uniper has now produced its first app: “We provide certain customers a market information portfolio every day, and this information used to arrive by email, PDF etc. We thought, we need to turn this into something different; we need to think what people are looking for; we need to give it a digital touch. So, we created an app that went live in January. After three months, we

had reinvested the whole capex we spent on this, and we are now getting questions from competitors asking if we can sell this product to them.” The company has a second and third app on the way, and it credits the innovation that led to all three to their newly non-linear thinking.

Over time, Uniper is hoping to completely integrate business and IT within its staff, to tightly marry the two so the company can utilize both with smooth confidence throughout its operations. René and Stephan concede that sometimes, a situation calls for a firm expert in one area or the other, but for the most part, this blending of both is their vision for their company and its people, and, in their own time, their full body of clients as well.

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WORKING FOR EVERYONE Botswana Chamber of Mines chevron-square-right www.bcm.org.bw phone-square 00267 391 4685

Botswana used to be one of the poorest countries in the world, and now is a flourishing, growing middleincome economy, all off the back of mining. To profit from mining is, in part, reliant on the good fortune of existing on resource-rich land, but it takes so much more strategy and governance than this. We spoke with Charles Siwawa, CEO of the Botswana Chamber of Mines about how the organisation has helped to further Botswana’s interests, both by supporting the mining industry and, through doing so, the country as a whole.

Written by Alice Instone-Brewer

B

otswana enjoys three main sources of mining income: base metals, coal and, most iconically, diamonds. The Botswana Chamber of Mines was established in 1984, existing to work as a go-between that assists mining and exploration companies in the country by speaking with them and the parties that may impact them, such as the government, NGOs, United Nations bodies and other environmental groups. It does all of this to promote the interests of the country’s mining industry, but with a wider view, the interests of the country as a wider economy.

Charles describes the Chamber as a “united voice” for the various companies that work in mining and related services within Botswana.

These companies can register as members of the Chamber, and can therefore benefit from their concerns and points of view being heard and represented by the Chamber’s advocacy.

We asked Charles about some of the ways that the Chamber has been able to bring about a positive change for the companies and industries it represents. As well as going back and forth in discussion with the Botswana government, the Chamber takes a more handson approach: Endeavour Magazine | 53

BOTSWANA CHAMBER OF MINES

“We get involved in the drafting of policies and acts that the government wants to implement. Primarily, we do that knowing that the government might draft these policies and acts without necessarily looking at the pragmatism of implementing them.” Politicians do not know the ins and outs of mining and exploration, which is where the Chamber steps up to represent these needs. “If you engage the private sector with the government, in terms of drafting those politics, they become much more implementable. We’ve engaged ourselves in all of these things, including the setting of standards, so there is quite a bit that we think we have achieved.”

The Chamber also lobbies and pushes to have laws or systems amended when they are not allowing the industry to operate efficiently.

This not only helps local mining and exploration groups, but makes Botswana a more attractive country to foreign companies and investors.

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working conditions must also be feasible, and whilst mining and exploration companies are hardy when it comes to terrain and other such challenges, there is nothing they can do about bureaucracy. The Chamber is a different story.

“There were certain areas where we felt that the government was not efficient enough at delivering their services, and we engaged with them to the point that we’ve seen things getting easier and easier, especially when it comes to permits. It used to be very difficult to get a work permit, in the sense that it took a long time. By the time your permit was approved, the person you wanted to employ may have moved on to other opportunities. Nowadays, provided that all the paperwork is right, your permit should be approved within a fortnight.”

The Chamber has also reduced the time it takes the government to convert a prospecting license into a mining license, again to make work in the country smoother and more appealing to outside companies. “People would like to work in an environment where there are few hindrances to what they want to do.” As mining has been the backbone of Botswana’s economy for some fifty years, it only makes sense that the country strives to be as miningfriendly as possible.

Although the Chamber of Mines was established in 1984, it did not operate out of a set office until 2010. It was Charles who founded this Secretariat. Prior to this, he worked in the mining industry himself, in particular the diamond industry, which has given him the insight into its ins and outs that he needs to understand the concerns that the Chamber’s members bring to him. One such member is Botswana Ash Ltd (Botash), a founding member of the Botswana Chamber of Mines. “They have remained steadfast in their membership over the years and contributed significantly to the growth of the Chamber.” As a member of the Chamber, Botash has a number of services available to it, including advocacy services, help with permits and, in particular, assistance in vocational skills development, which has been at the forefront of Botash’s strategy and that has, according to Charles, “proven over the years to be of added value to the industry as

WORKING FOR EVERYONE

a whole.” Charles described the relationship between the two entities as conducive to the growth of both organisations.

These close industrial bonds and this strong industry did not always exist in Botswana; 50 years ago, the country’s economy was extremely different. The transformation began with mining, but thanks to careful governance and forward thinking, this industry is not where the benefits have ended: “50 years ago, we were sitting at the bottom four of the poorest countries in the world. We’ve worked ourselves up to being a middle-income country, and our aim is to climb higher in this bracket. What really drove us is the diamonds - at one point, in fact, about ten years ago, we were the biggest diamond producing country in the world.” The revenue of this business would not, in itself, guarantee economic strength for Botswana, but the government, in collaboration with the Chamber, have been wise in how they have put this revenue stream

to use. “The diamond revenue was used to diversify the economy. You need to use it for the diversification of other industries; when other industries are also operating, then you have a balanced economy. Some 20 years ago, diamonds contributed around 50% of Botswana’s GDP; now, we’ve managed to square that down to about 20%. That isn’t because there’s less money contributed by the mining industry – it is because these other industries have come up.”

Another, more direct way that the Chamber wants to see mining boost other industries is by creating work. With so much money and so many resources involved, mining is a vast potential market for the rest of Botswana to take advantage of. “We want to embark on citizen participation within the mining industry, and to use the mining industry as a market. For instance, bottled water – if you are bottling water in Botswana, the mining industry should be able to absorb the output from your

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BOTSWANA CHAMBER OF MINES

plant.” This could go far further than simple products like water; mining needs equipment, and Charles would like to see this equipment produced locally, and has pledged to support the company that tries.

There are three levels to encouraging this sort of business involvement, which Charles laid out for us in order of the Chamber’s preference: “The first level is that we encourage citizen participation. If there’s a citizen company, that will get first priority. On the second level, you get a joint venture, with a company from outside the country and one from within partnering up.” These are the majority of what Charles has seen occurring. Finally, the last category is one without local involvement, where a product is currently not produced to standard within Botswana. Charles hopes to see local participation in these areas eventually.

Botswana’s mining industry took a hit a few years back, due largely to commodity prices, and this saw a significant decrease in

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56 | Endeavour Magazine

the number of mines in the country. However, prices are going back up, and the industry is back on the rise. Charles feels that the future is bright for the industry and, in particular, that base metals are set to see great improvements.

Coal and diamonds are steady, established industries, but recent changes in the country are about to significantly boost its base metals potential.

Base metal mines and deposits are mostly found on the western side of Botswana, but this side of the country has a less developed infrastructure. In particular, it was lacking in electricity. “The government is now putting in place grid power from the eastern part of the country to the west, primarily to support these mines. We should see, by next year and beyond, quite a few of those mines opening up.”

This new power grid will not only assist the mines in the area, but also any community that it passes that previously did not have power, which leads on neatly to the Chamber’s other

WORKING FOR EVERYONE

goal. As well as striving to support Botswana through its industry, it also believes in helping the country through outreach, and encourages all of its members to be ethical in their mining approach, both in terms of environmental practices and through involvement with local communities. “Our members are not coerced to be environmentally friendly – it comes naturally to them to adopt the principles of good governance in terms of environmental issues. Secondly, if you look at Corporate Social Investment, even some of our companies who are not generating any revenue, such as exploration companies, still find it fit to reserve some of their capital for corporate social investment. It is very important to us.

By participating in this, you are buying a social licence to operate.”

Charles shared several stories with us of corporate social involvement from his Chamber’s members, including the story of an exploration company who found a village with

a broken down well, with its water reticulation also in a bad way. The company restored both.

He also shared stories of companies who have supported schools by building classrooms, or assisted communities by helping to revitalise their farming.

From these individual cases to a widespread economic effect, mining has been and continues to be an essential part of the building blocks of Botswana. As long as the industry operates, the Chamber will be present to protect it, and to uplift the country as a whole.

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PROVIDING FOR MYANMAR MSP CAT chevron-square-right www.mspcat.com.mm phone-square 0095 1 547140

Caterpillar Inc. is the world’s largest manufacturer of construction equipment, operating through a worldwide network of local dealers who supply and support the sale and rental of their products around the globe. One such company is Myanmar’s Myan Shwe Pyi Tractors Ltd (MSP CAT). We spoke with Ng Chong Ted, CEO, to learn more about the fruitful partnership.

Written by Alice Instone-Brewer

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SP CAT is the official dealer for Caterpillar products in the Myanmar territory. As such, it is involved in the distribution of high-quality electric power generators, as well as construction, mining and agricultural equipment like excavators, bulldozers, wheel loaders, graders, trucks, pavers and rollers, all supplied by Caterpillar.

However, the company doesn’t stop there; whilst an official Caterpillar partner, it does supply some equipment from other brands in areas that CAT don’t supply; for example, concrete and asphalt batching plants, tractors and other agricultural tools. It sources these products from around the world; from the US, China, India, UK, Germany, France, Thailand, Indonesia and Italy.

As well as supplying this equipment, which MSP CAT makes available for both purchase and rental, the company also provides support services to assist its customers in their experience through a network of 18 branches positioned across the country. These services include maintenance and repairs, with a discount offered on ‘before-failure repairs’; if you bring your equipment to them when you notice something about it isn’t right, but before it breaks down entirely. This incentive Endeavour Magazine | 59

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saves not only the customer’s funds, but preserves its equipment from needless wear and tear.

Competition is high in Myanmar; the country has been earmarked by many as a promising market, and Ted explained to us. “Myanmar is considered to have a high growth potential due to an abundance of mineral resources and a dire need for infrastructures such as roads, bridges, railway, ports, housing etc.” They have a clear need, and give time, the resources with which to fund it. In business, you need to think ahead in order to be early feet through the door. However, despite the amount of attention the country receives, operating in it has its challenges: “There is a shortage of skilled employees and an inefficient banking system, as well as extensive bureaucracy. Some of these challenges, we can mitigate, e.g. by operating our own vocational school for technicians, but the others will continue to hamper the development of Myanmar and increase the

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cost of doing business in the country, at the expense of local businesses and consumers.”

Ted feels strongly about the restrictions that are slowing the potential growth of his country, but where MSP CAT is able to make a difference, it does. The company runs an apprenticeship program out of their vocational school in Yangon, where high school graduates recruited from around the country are trained as certified Caterpillar technicians. Training materials for this school are provided by Caterpillar themselves, who also provide training materials for MSP’s existing staff, which allows them to engage in “continuous learning, promoting best business practices and supporting us with Caterpillar’s technical knowledge.” As for graduates of MSP Cat’s school, the qualification they gain makes them employable not only in Myanmar, but anywhere that the Caterpillar global giant operates.

“The school has a separate facility, complete with schoolrooms, an auditorium,

PROVIDING FOR MYANMAR

computer labs, workshops, simulators and a proving ground where the apprentices can operate machines. We have a Technical Career Development Program catered to our technicians, and we also run our Salesman Career Development program for our sales staff.� MSP CAT currently employs close to 850 people. Out of this large team, almost all of them are Myanmar locals, with only three hailing from abroad, meaning that large numbers of locals are benefiting from the education that a role in MSP CAT provides.

This team of 850 serves over 5,500 customers throughout country, selling hundreds of units and performing thousands of maintenance and repair operations. As the company puts it, 3,467 CAT machines are currently being used to construct Myanmar, and 4,700 generators are powering it. These figures are the result of a recent period of growth: “In the past four years, we have grown our network of branches from four to 18, connected over a thousand

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MSP CAT

machines through telematics, introduced new, successful brands to the market and considerably increased our market share.”

The company reached market leadership in 2018 and, next year, it will continue this story of growth by completing and opening its new warehouse and workshop in Yangon.

In part, Ted credits the company’s success to its selective focus; “MSP CAT focuses on the power generation and construction, mining and agriculture industries rather than diversifying into the areas outside of our expertise like some of our competitors do.” The company is also careful to align itself only with reliable, best-in-class brands, through whom it provides equipment it can be proud of. It then pairs these top-of-the-range products with innovative support services: “We introduce technological breakthroughs into the market, like remote monitoring of machine functions through telematics and 3D autograde system that use GPS to provide accurate blade

positioning.” Of course, lastly, he also credits the dedication of the company’s team.

Ted has been with MSP CAT since it was founded in 2009: “I joined the company at its inception, starting out as the CFO before adding on the role of CHRO a few years later. I assumed the CEO post in January 2019, having held the dual position of CFO and CHRO for the past seven years.”

We asked Ted what he felt was the right approach to take to leadership: “The CEO should provide clear directions for the company by making rational decisions and understanding the challenges faced by the staff, and should motivate and rally the staff to overcome challenges.” A part of achieving this, in Ted’s mind, is open and accepting communication between leadership and employees, requiring “regular engagement of staff, listening to their views and accepting their suggestions or proposals whenever they are sensible and rational.“

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Regarding the future, Ted is confident that MPS CAT will continue to flourish, despite the difficulties currently being faced by the country’s industry as a whole: “We believe that the long-term prospects for MPS CAT are good, although we face challenges in the short to medium-term as the country overcome its own sets of challenges and grows. As a sign of confidence, we are building our own integrated facility in Yangon on 11.5 acres of land to house our yard, workshop, warehouse and office building.”

This faith is not built on hope alone, however. The company continues to be strategic, and is currently preparing to respond to the needs of a demand that it predicts will emerge as industry in the country rises: “We believe that the machine rental business will grow, especially as more and more foreign companies come into the country. By renting our machines, they can focus on what they do best for their investments and business, instead

of spending resources acquiring the machines, operating and looking after them when many of their machine requirements are short-term.

As part of our focus on this business, we have decided to set up a separate entity and work with a local leasing company to finance these rental machines.“ With all of these changes on the horizon, it seems that MSP CAT isn’t letting anything slow it down. We look forward to revisiting the company in the future to see how its new subsidiary is fairing, as well as Myanmar’s greatly anticipated construction boom.

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KEEPING SINGAPORE IN BUSINESS Seashore Group chevron-square-right www.seashore.com.sg phone-square 0065 221 4766

Logistics services are, quite literally, keeping the world in business and while they might not seem like the most glamorous part of a supply chain, operations such as Singaporean Sea-Shore Transportation are a vital cog in a globally significant machine.

Written by Amy Buxton

T

o understand why certain companies are so respected and revered by their peers, it’s important to first establish exactly what industry they are striving to make a difference within. When it comes to logistics, the sector moniker itself is deceptively farreaching, covering a vast spectrum of vital services, all of which support and prop up numerous other global industries. In the case of Sea-Shore Transportation (SST), it’s all about integrated solutions that can offer clients extensive peace of mind that their cargo is in good hands.

So, what exactly are these integrated solutions and what makes them so special?

Focussing on transportation and freight forwarding solutions, SST has been able to specialise and hone every process, down to the finest minutiae. When you consider the size of the task and, often as not, equipment at hand, this is no small undertaking.

Bringing freight forwarding into the future In layman’s terms, a standard freight forwarder is simply a middleman that organises and oversees the successful and safe transportation of goods from a point of origin to a final destination. This might sound simple Endeavour Magazine | 65

SEASHORE GROUP

enough, requiring some basic transport and a vaguely structured approach to scheduling, but SST has gone the extra mile, by looking at the storage facilities that it can offer to clients.

Naturally, different types of cargo have to be handled, processed and even stored using different methodologies and this requires significant investment into facilities and equipment. SST has made a commitment to its clients by increasing its variation of storage solutions through large-scale expansion and innovative warehousing systems. Being completed over three separate phases, this expansion has required land purchases and research into the most efficient and effective racking solutions, but it will, eventually, allow for specialist elements, such as chemical storage, to be an everyday offering.

Few freight forwarders are as attuned to the needs of their clients as SST and being based in the Benoi Sector of western Singapore, a particularly industrial region with large

numbers of companies requiring logistics support, the company has been able to make a calculated investment into staying ahead of the game. Even the transportation services are being improved upon.

Taking transportation up a notch Utilising a wealth of existing infrastructure, transportation services commit to something significant; the timely and safe delivery of goods, on behalf of a client, to their own consumers. When you consider that there are two sets of end users that need to be satisfied, it becomes clear just how high the stakes are and that there is far more to transportation services and logistics than simply buying a fleet of large enough vehicles. SST, through steady growth and organic diversification, is now the proud owner of a varied fleet of prime movers and trailers, each of which has the capacity to carry a varied load, specialist items and large bulk. From containers stretching 2040 feet in length, regardless of whether they are full or empty, through to ISO tanks and even dangerous materials, SST can cater to every need, while maintaining a cost-effective operation that keeps clients coming back time and time again. Of course, it’s also the 250-strong contingent of professional team members that also encourages return business.

As the company has grown, so too has the body of staff, rising sharply from an initial 100 individuals to in excess of 250. With every person considered to be as important as the next, in the fight to become Singapore’s premier logistics solutions company, SST has created a culture of mutual respect, trust and ownership of responsibility. This, in turn, laid rock-solid foundations for an exciting period of capability expansion in 2017, which saw a partnership propel SST to the forefront of the industry.

Partners in profitability Joining forces with Kerry-ITS allowed SST to offer a fully-integrated logistics and freight forwarding solution, through significantly increased efficiency when it comes to the transshipment of client cargo,

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SEASHORE GROUP

“The strategic intent is to provide customers with ‘Total Integrated Logistics Solutions’, such as trucking (empty/loaded/DG), steam heating, break bulking, container freight station, DG laden tank container storage for transshipment, drumming, storage, port to CY including permit clearance etc.”

Already a leading expert within the tank solutions industry, Kerry-ITS was able to increase the experience and knowledge base of SST, while in turn, garnering all the benefits of having an expert logistics provider on hand, “Kerry-ITS Terminal Pte. Ltd. has signed a strategic partnership with Sea-Shore Transportation Pte. Ltd., a leading integrated logistics and freight service provider, to increase efficiency of transshipment of cargo. The two firms will be working together to operate two existing warehouses in the Benoi Sector (DG Laden Bonded Yard) and Pioneer Sector (Expanded Storage Yard). They are located within a Free Trade Zone and transshipment Seashore Group Sponsorship_FA.pdf

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containers can be organised for subsequent distribution at minimal cost for the customer.”

By putting aside professional hubris for the good of existing and future clients, SST was able to embark on this exciting partnership that would bring renewed possibility to the industrial landscape of Singapore. After all, good logistics are one thing, but a fully integrated solutions package that can be extended to almost any sector? That’s what turns a respected company into a market leader.

With a significant manufacturing industry in place, Singapore will always be in dire need of exemplar logistics solutions and the scope of the products being produced requires adaptability, not to mention specialist knowledge and equipment. SST has proven time and time again that it is the right company for Singapore’s transportation needs and now, having partnered with Kerry-ITS, the future is all but guaranteed to include even more clientfocussed innovation and expansion.

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PROVING ITS METTLE Lundin Mining chevron-square-right www.lundinmining.com phone-square 001 416 342 5560

With operations dotted around the globe, Canadian mining expert Lundin Mining is setting an enviable precedent in terms of successful exploration and production standards and it looks set to dig even deeper for bigger rewards.

Written by Alice Instone-Brewer

A

diversified base metals mining operation, Lundin Mining (Lundin) is primarily focused on the production of copper, nickel and zinc, while also having its fingers in other pies. For example, thanks to a 24 percent interest in Freeport Cobalt Oy, it benefits from a Finnish cobalt refinery’s output as well. This keen desire to embrace profitable opportunities is a steadfast and defining characteristic of Lundin as a whole, as various countries and metals are being commercially, though responsibly, exploited, as opposed to simply confining operations to Canada.

With active operations in Chile, the USA, Portugal and Sweden, Lundin has made it clear that where the metal is, is where its team will go and with that goes a strict contingent of values and standards, “We responsibly mine base metals vital to society, creating meaningful value for our stakeholders. We hold health and safety as our top priority in everything we do, embrace diversity, inclusion, open dialogue and collaboration and we do what is right and honour our commitments. We set high standards and challenge ourselves to deliver superior performance.�

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LUNDIN MINING An impressive rise to prominence Incorporated in 1994, under the name of Atlantic Diamonds Corp, Lundin wasted no time when it came to making an initial impressive discovery. Thanks to a 39 percent ownership stake in North Atlantic Natural Resources, the Storliden deposit, located in Sweden, was found in 1997 and plans were set in motion to fully explore and develop the mine site. Just four years later, a joint venture project was agreed and work began, with commercial production starting in 2002.

From the impressive initial Storliden discovery, Lundin found its feet and began to carve itself a name for being a force to be reckoned with, leading to the official name change to Lundin Mining Corporation in 2004. Moreover, acquisition of a zinc, lead and silver mine followed in the same year, as well as Stockholm and Toronto Stock Exchange listings. It was a big year and paved the way for even more ground-breaking partnerships and projects.

With a decade of success under its belt, Lundin was able to take full ownership of North Atlantic Natural Resources, giving it full control of the zinc and copper producing Storlinden Mine in Sweden. Mergers with other parties also allowed access to mines in Ireland and Portugal, securing a global presence and a strong position for upcoming mine acquisitions that would change Lundin’s grip on the industry significantly.

With Tenke Mining Corporation and Rio Narcea Gold Mines both acquired in 2007, you’d be forgiven for assuming that no further expansions were undertaken, yet large-scale growth was put into motion for an existing site and set a precedent for continuous development and expansion of all owned locations for the next decade. With significantly improved yields being enjoyed, profitable sales and viability proven, 2017 proved to be another unforgettable year for Lundin, “We declared our first ever dividend, commenced the Neves-Corvo Zinc Expansion

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LUNDIN MINING

Project to double zinc plant capacity, announced a significantly improved life of mine plan for the Candelaria Complex and investment initiatives and completed the sale of interest in the Tenke Fungurume Mine for $1.136 billion.”

With such an impressive growth curve, it would be all too simple to assume that responsible operating policies were left to fall by the wayside, at least until mines were firmly established and producing good yields of material, but that is simply not the Lundin way.

A pillar of the community Committed to being not only a profitable business but also a guiding light within the communities it operates in, Lundin has long aligned itself with a desire to act and be seen as a good corporate citizen and sees this as intrinsic to the ongoing success of the entire company. Yes, stakeholders are important, but

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satisfaction should not come at the detriment of either regulations or the environment, “We are committed to operating in compliance with applicable laws and regulations in all jurisdictions where we operate, and we seek to continuously improve our sustainability performance. We strive to align our policies and procedures with international best practice and guidance for social and environmental performance, and to ensure that we meet our objectives and targets. Management monitors and reviews performance on a regular basis, and we publicly communicate our efforts annually.”

It’s the transparency that really sets Lundin apart. The mining industry has been notoriously dangerous, not to mention secretive, in many regions of the world, but this Canadian operation is changing the face of the sector for the better. With a comprehensive responsible mining policy in place, as well as a responsible mining framework, accident-free weeks have

PROVING ITS METTLE

increased year on year, water wastage has been significantly reduced and capital has been freed up for social investment projects. All of this adds up to a company that communities welcome into their vicinity and not just because of the potential for economic stability through employment opportunities, “Lundin Mining recognises that its operations can have significant economic, social and environmental impacts on local communities throughout the life cycle of our mining operations and our reputation as a good corporate citizen is important to our longterm success in creating shareholder value. We understand the priority our stakeholders place on sustainability issues and have developed corporate governance processes to underwrite our commitments in this area.”

As 2019 progresses, Lundin has its sights set on even more expansion and diversification, with a copper mine acquisition firmly on the cards, in Brazil. This will prove to be a significant

step forward towards enlarging the copper side of the operation and guaranteeing a strong industry position for many years to come, “Leveraging our technical expertise, base metals focus and financial strength, we believe further opportunities exist to create meaningful stakeholder value. The addition of Chapada further solidifies Lundin Mining’s position as a leading intermediate base metals producer with high-quality low-cost copper exposure.”

It goes to show that even in a tumultuous industry such as mining, strong ethics, a commitment to identifying viable growth opportunities and community connections can work together to create something very special. In the case of Lundin, an enviable industry presence, consummate reputation and excellent profit margins are just the tip of the iceberg and it will be fascinating to watch as its global expansion continues.

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AMAZING WORLD

NARWHALS RETURN

W

hether a thousand years ago or today in the 21st century, Narwhals evoke mystery. These creatures of the sea are thought to have sparked the mythology surrounding unicorns, as they are the closest living animal resembling the mystical and magical creature.

Narwhals have inspired awe throughout the ages. Inuit legends hold an origin story for the animal, claiming that a woman who wore a long plait was thrown into the ocean by her son after a dispute and transformed into what we now know as the narwhal. During the age of Viking domination in Northern Europe, their tusks sold for ten times their weight in gold. Medieval merchants sold the tusks to members of royal families and claimed that it was the horn of a unicorn - they believed that the unicorn horn could detect poison, increase virility, cure the plague, and even raise the dead!

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by James Lapping Queen Elizabeth I was gifted a tusk during her reign that was encased in jewels and was worth the same amount as a castle. Today, this would be approximately $3 million. The mythology of the narwhal can be found within literature too; an excerpt from Herman Melville’s ‘Moby Dick’ discusses how Danish kings throughout the ages sat in thrones made from their tusks.

Mythology aside, the narwhal is a mediumsized whale from the same family as the beluga whale. The largest males can weigh in at a total of two tons and grow up to 16 feet long. They frequent the icy waters of the Arctic Ocean and can occasionally be seen off the coasts of Greenland, Canada and Russia.

The ice on the surface of the water protects them from predators such as polar bears, and in the deep ocean below, there are plentiful resources of flatfish cod and halibut for them to feast upon.

Of course, the narwhal isn’t in fact a relation of the unicorn. Furthermore, what is commonly mistaken for a horn on the narwhal’s head is actually an upper left canine tooth protruding from its mouth. These are similar to the tusks that you can witness on a walrus or an elephant.

The narwhal is a unique feature of the animal kingdom; it is the only animal that sports a straight tusk, which in some examples can grow up to 10m in length! What makes the tusk even more curious is that it grows in a spiral and can bend significantly without breaking.

Researchers and academics are still stumped over what the narwhal’s tusk is actually used for. When kept in captivity, narwhals die very quickly, so the only observation that can be practised is within the wild, and even then, they are very shy characters.

The tusk is covered in nerve endings, essentially like an inside-out tooth. They are not used to kill their prey or to fight, though

narwhals have been known to occasionally cross swords. The length of the tusk is more prominent in males, so it is believed that they have the same function as antlers do for deer – the bigger the tusk, the more alpha the narwhal.

There is still much research to be done on the narwhal. One theory regarding the tusk is that it is used to detect changes in the surrounding ocean, such as the saltiness or temperature of the water. Another theory is that the tusk is a sonar device used to explore the dark depths of the ocean, but this hasn’t been academically confirmed.

There are many wild and wonderous animals that populate the earth, but the narwhal is certainly one of the most mysterious, steeped in myth and legend. These timid whales have amazed people throughout the ages and certainly deserve our respect and admiration.

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CRAFTSMANSHIP IN THE CARIBBEAN TOSL Engineering Ltd chevron-square-right www.tosl.com phone-square 001 868 657 8675

Providing exemplar engineering support to all of the major industry players in the Caribbean, TOSL Engineering is ready to embrace a new phase of operation, which is dominated by a move into the global marketplace.

Written by Alice Instone-Brewer

F

ounded in 1982, TOSL Engineering (TOSL) has grown from a grassroots Trinidadian company into an impressive multifaceted operation that seeks to provide clients with totally bespoke engineering solutions packages, regardless of which industry they come from.

In fact, TOSL could almost operate under a streamline that refers to variety being the spice of life, as they serve such a diverse base of clients, but this is no easy feat and staying at the top requires a lot of ongoing development, “By leveraging strategic partnerships with international suppliers, procuring state of the art machinery and equipment and by ensuring that its employees continuously receive the latest training and skills development, TOSL is recognised as a regional leader in providing clients with best in industry trusted products, supported by a best in class customer oriented services team.

Alongside a commitment to always staying at the cutting edge of not only equipment, engineering progress and human resource development,TOSLseeks out extra opportunities that will really set it apart from competitors. By working to principles of accountability, best practice and cost-effectiveness, the company has been recognised, on numerous occasions, Endeavour Magazine | 79

TOSL ENGINEERING LTD

for its endeavours and clients are paying attention, “TOSL’s holistic, innovative approach to client service and client satisfaction is evident in its continued introduction of new services and products that not only seek to meet the current demands of clients, but also in anticipating their future needs in the various dynamic sectors the company operates in. Our commitment to the highest levels of customer satisfaction has resulted in relationships with clients that span generations.”

Relationships can only go so far, however, if the services roster is listed or left to become archaic. Thankfully, TOSL is vigilant in terms of preventing these pitfalls from having an impact.

Strength in numbers Though it’s not possible for one company to offer every single service within a specific industry, it is feasible that forward-thinking, determined and competent operations can diversify to such an extent that there is likely to be a product or solution suitable for most prospective clients. TOSL is one of them, with an impressive level of variation observable in the day-to-day undertakings of the team, “TOSL’s operations are diverse and are a reflection of its desire to be a one-stop product and services centre for all their clients’ engineering needs. The company’s operations are strategically structured around a few core divisions: mechanical engineering, electrical, instrumentation & automation, industrial equipment sales & procurement, asset integrity inspection & testing, wire rope & rigging, construction and maintenance project management, welding, fabrication & machining and chemicals & process technologies.”

This comprehensive offerings list should give rise to an intrinsic understanding of just how many different sectors have come to rely on TOSL to keep their own operations running seamlessly. In essence, no industry has been left untouched, with everything from energy, petroleum and utilities, through to mining and even logistics all being bolstered by the experienced team and unique solutions of 80 | Endeavour Magazine

TOSL. This is why four separate divisions have been established, to ensure adequate focus and commensurate expertise.

By identifying the core capabilities of the company, TOSL has been able to split itself into four sub-divisions, allowing for better appropriation of team talents and expertise.

Strategic sourcing, construction & maintenance, engineering products & services and energy solutions are the independent divisions that, collectively, offer clients old and new access to a full complement of engineering solutions, each of which can be tailored to perfectly suit a diverse range of needs. TOSL is more than just a provider of turnkey services however, as it has been consistently striving to educate future generations of engineers, through its academy.

Contributing to a better tomorrow Being the best at what you do is no longer enough in today’s competitive business world and savvy companies are always on the lookout for new and interesting ways to set themselves apart from their competitors. TOSL is certainly no exception to this rule and has created an academy, dedicated to training the energy sector engineers of the future, in line with a Caribbean-wide directive to improve the industry, “The Energy Industry Competency Development Initiative (EICDI) is an industrywide initiative aiming to raise the overall competency of the energy sector workforce in the Caribbean. The goal is to have a common competency framework for the energy contractors’ workforce, recognised and accredited processes, training bodies and assessors. TOSL Engineering has been working with the Energy Chamber of Trinidad and Tobago to become part of an industry-wide system for assessing and certifying technical competencies, using our facilities as a certified work assessment centre (WAC).”

While some companies are content to identify an area of expertise and simply stay within the boundaries of that one facet, others take a braver, more self-assured stance and seek to contribute to the future of their industry. TOSL, by continuously diversifying its

TOSL ENGINEERING LTD

products and services portfolio and investing in training initiatives, is taking care of both current-day business and ensuring a futureproofed position, meaning that it will always be at the forefront of the Caribbean engineering sector and a highly respected partner for many local and global partners. Would you expect anything less from a company that has the foresight to embrace digital training methodologies?

“Our main intention for the coming years ahead is to use digital platforms and media channels to share the knowledge and expertise of some of our global partners, whilst also building an extensive online portfolio of TOSL tutorials on key techniques which exist in the faculties of mechanical, electrical and civil engineering.”

The future may indeed be digital but there will always be a need for practical, hands-on engineering support too, from a multitude of industries. This is why TOSL is set for bigger

and better things, as it has mastered the art of remaining true to its practical roots, while also being open-minded as to the potential for modern technology and media techniques to play a significant role in dayto-day activities. What’s more, the world is just a button-click away in today’s connected age, meaning that TOSL could be on the path for global recognition, having conquered the engineering sector in the Caribbean and that’s genuinely exciting.

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operations@onsiteservicesltd.com (868) 636-6213, (868) 636-2983 82 | Endeavour Magazine

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KEEPING HYDRATED DESALCOTT chevron-square-right www.desalcott.com phone-square 001 868 636 3725

An island may be surrounded by the sea, but that doesn’t mean it has access to water.

DESALCOTT, Trinidad and Tobago, is the largest desalination producer in the Southern Hemisphere, operating on a never-ending cycle twenty-four hours a day, seven days a week.

This endless work produces between 15-20% of water for Trinidad and Tobago during the dry season.

Written by Jack Slater & Alice Instone-Brewer

I

n 2011, the Desalination Company of Trinidad and Tobago (DESALCOTT) celebrated its 100 billionth gallon of desalinized water.

They have spent each year since adding to this impressive milestone in leaps and bounds: originally created for the sole purpose of selling desalinated sea water to WASA (the Water and Sewerage Authority), DESALCOTT is now wholly responsible for designing, building, financing and operating Trinidad’s $200 million desalination plant.

The plant was a joint enterprise between Trinidadian company Hafeez Karamath Engineering Services Limited and General Electric, and also received financing from HKESL and Ionics Inc ($20 million), and in 2000, the project received support from the Republic Bank Limited through the Republic Finance and Merchant Bank (Fincor). More long-term financing was established in 2003, until in 2012, HKESL bought all of the shares outright and became the plant’s sole owner. This now makes DESALCOTT a wholly Trinidadian owned and run operation. This sale was able to transpire thanks to First Citizens Bank Limited, who provided essential financing to facilitate the acquisition of General Electric’s shares.

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DESALCOTT

WASA and DESALCOTT have enjoyed a long and prosperous relationship, where WASA has asked a lot of DESALCOTT and they have proved themselves not only worthy but singularly capable of meeting these rigorous demands. In 1999, WASA signed a contract with DESALCOTT to purchase over a hundred thousand cubic metres of water per day (24 MIGD) for a period of twenty years. Point Lisas Industrial Estate tenants were the primary market for the water that the company produced, and whatever surplus remained was used by WASA to supplement their own supply to residents in South Trinidad.

Later, in 2012, the same year that DESALCOTT changed ownership, WASA increased this contract from 24 MIGD to 40 MIGD. As shutting down their operations to conduct the expansion was out of the question, it was planned that the construction would take place in increments over a thirteen-month period, with deliveries of water increasing appropriately. By the end

of 2013, the gradual expansions had pushed DESALCOTT’s peak capacity to 50.4 million US gallons per day.

The process behind desalination is fascinating and occurs through a three-stage system. The first stage is the intake of raw seawater from the Gulf of Paria, which is screened and then pumped for one and a half kilometres via 42inch diameter pipelines. During the expansion in 2012, three additional pipes were added to the original two, to facilitate an increased intake of the raw material.

Once macro impurities, such as ocean debris, dirt and organic material, have been removed, the water is then transported to the facility and passed through a pre-treatment stage.

Continuous and reliable pre-treatment of raw seawater involves a total system approach to increase the efficiency of the reverse osmosis system. One of the goals of this stage is to minimize the impact of processes such as fouling and scaling: fouling is what happens

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DESALCOTT

when water becomes contaminated through the entrapment of particulates in the liquid through the deposition of bacterial and other biological residues, and scaling is what happens when water that contains too much calcium, magnesium or other salts is heated. You’ll no doubt have seen the effects of scaling when cleaning out a kitchen kettle!

Minimising membrane degradation is another aim that needs to be addressed.

Seawater contains silt and various other entrained solids; a cocktail of ferric chloride is used as a coagulant and a catatonic polymer is used as coagulant acid, and together these chemicals remove the solids from the seawater.

As well as removing these solids, it is also essential to remove the microorganisms within the water. Sodium hypochlorite is used to minimise/prevent bio-fouling of the reverse osmosis membranes in the seawater, and then sulphuric acid is utilized as an anti-scalant to eliminate carbonate and sulphate scaling. The

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final product is passed through post-treatment, where a solution of sodium hypochlorite is used to provide residual chlorine to ensure that the drinking water is free of any biological activity that could cause illness, and finally, a lime solution of calcium carbonate is used to give the water a near neutrality of between 7 and 8.5 pH. It is a complicated process, and one that must be done carefully and correctly in order to protect the health of those relying on it.

The company employs over a hundred fulltime staff and places a high value on the importance of hiring locally, but even so, the company occasionally brings in experts from further afield to double check their processes and bring a fresh set of eyes to their operations.

This external examination and critique are invaluable in making sure that they stay at the top of their game, and don’t miss any opportunities to innovate and improve on what they do. This goes for all of their processes,

KEEPING HYDRATED

as well as the training of their staff. Now, thanks to this dedication to quality, the water DESALCOTT provides is actually purer than the water produced by WASA themselves. In fact, with less than 85mg of dissolved solids per litre, the water is better than the World Health Organisation (WHO) standards for drinking water! You can’t ask for fairer than that.

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CLEANER SKIES E.ON Wind Power chevron-square-right www.eonenergy.com phone-square 0049 2 011 840

E.ON Energy is an international, privately owned energy supplier headquartered in Essen, Germany. The global company employs around 43,000 people worldwide.

Whilst it deals in energy of all forms, from coal to nuclear, it has long placed a focus on renewables, and this focus is only increasing. We took a look at E.ON Wind Services, the wind-power-centric offshoot of E.ON Energy, to see what contributions the company is making to the renewable space.

Written by Alice Instone-Brewer

E

.ON has been amongst the pioneering companies in renewable energy for some years. To select a country within the company’s network as a case study, its UK arm invested in its first wind farm in 1991, and since then, has taken a leading role in Britain’s wind power industry, expanding its portfolio and putting £2.4 billion towards the development and improvement of the technology. The company now operates 20 such farms in the country, both onshore and offshore. One of these offshore farms, located at Blyth, was the first offshore wind farm to be built in UK waters.

Though it has since been decommissioned, the £4 million investment operated between 2000 and 2019 and helped to lead the way in wind power technology in the country.

Globally, E.ON’s wind farms work in conjunction with its solar and biomass operations to produce the company’s renewable energy contribution. In total, the company has invested billions into the development of this technology - over €9.5 billion since 2007.

E.ON does not deal exclusively in renewables, however. The green energy source is just a part of the many streams the company combines to produce electricity for its large customer base. To again use the UK as a case study, the Endeavour Magazine | 91

E.ON WIND POWER

company’s electricity supply is produced from 53.5% gas (unsurprising, as the company is also a gas supplier), 16.8% renewable, 16.2% nuclear, only 10.1% coal, and 3.4% ‘other’. The difference in environment impact between coal and gas vs renewables is well known, from the impact of its generation through to its use, but E.ON’s UK statistics made the contract particularly clear.

In a break-down of carbon dioxide emissions, measured in g/kWh, the E.ON UK average for coal is 93 g/kWh, and for gas, 191 g/kWh, whereas for both renewables and nuclear, these statistics come in at zero.

Fortunately, the company has stated that renewables will continue to be a key focus going forwards, especially as this area of their operations is at a point where it is selffinancing. In the company’s own words: “Global trends – like sustainability and climate protection, digitalization and technological innovation – are altering the energy landscape.

At the same time, our customers’ energy needs

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are changing. The result of these changes is a brand-new energy world – decentralized, green, and interconnected – that we must adapt to.”

The company is so committed to this development that it has an entire entity dedicated to it: E.ON Wind Services. The company has this to say about itself: “E.ON Wind Services is an independent, full-service provider of operations, maintenance and other wind services. We’re one of the world’s largest owners and operators of onshore and offshore wind farms, with locations in Europe and the United States. With over a decade of experience operating our own sites, our focus is on finding customer-orientated solutions and creating service packages to fit your needs.

We’re committed to finding innovative ways to improve our wind turbine maintenance.”

E.ON claims that it is number three worldwide in offshore wind energy, and is confident in its “expertise in engineering” in both this field, solar and bioenergy. “The energy world is steadily becoming more distributed, digital, and decarbonised. Our grids are constantly getting smarter, which enables them to integrate more renewable energy while remaining reliable. Our innovative solutions help customers of all sizes – from families and small businesses to large manufacturers and entire cities – to use energy more efficiently, produce their own renewable energy, and thus reduce their carbon footprint.”

By offering solutions at both a grid level and for individual homes, E.ON gives customers power over which of the company’s mixed energy sources they use, and gives them alternative options such as installing solar panels on their home to generating their own power. “Based on our core belief that society relies on everyone’s individual effort to fight climate change, we enable our customers to take a more sustainable path, and take our own share by constantly questioning whether we manage our business sustainably.”

E.ON’s commitment to lower its carbon footprint inspired the company to devise a new climate strategy in 2017. “The focus is on the reduction of carbon emissions released in connection with the sale of power and

E.ON WIND POWER

natural gas to our customers. This is because these emissions constitute the majority of our CO2 footprint. This also includes reducing our own energy consumption. All of our plants and buildings will be climate-neutral by 2030, meaning they will no longer cause any emissions.”

As for E.ON Wind Services, a key element in the company’s quest to support clean energy, the entity has a presence in Germany, Sweden, the UK, Italy and North America. It is a trusted service provider for stakeholders across the wind industry, and as such, has long-term partnerships with companies such as Rampion, London Array, Rødsand and Papalote Creek.

The company offers wind turbine maintenance, monitoring, testing, and the provision of spare parts. In summary, it exists to provide service support to wind turbine operators. These services even extend to wind forecasts and, of course, project management over wind farm construction.

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Regarding its involvement in construction, E.ON Wind Services offers support both before and during this process. Their preconstruction services include reviews of the site and the proposed project, negotiation support, risk assessments, procurement assistance, and pretty much any administrative planning issue that you could think of. Likewise, during construction, they offer everything from inspections of budgets to the machines themselves. “We look at construction activities from an owner’s perspective. With an operating portfolio of over 5.3 GW, we know how important it is to set a sound basis during development and construction for a smooth operation and high availability.” The company is also proud of the fact that it is not affiliated with any turbine manufacturer, meaning that its technology recommendations are based entirely on client needs, with no bias.

Between this assistance and ongoing support in every way imaginable once a farm is

CLEANER SKIES

up and running, E.ON Wind Services makes it much easier to pursue renewable wind power.

It can save energy producers expenses through sound advice and management, as well as timely and effective repairs and maintenance, all of which helps to make this green, clean form of energy more affordable. It will not only assist E.ON in lowering its carbon footprint and expanding its use of renewables, but can also help others to do the same, working towards a cleaner and more sustainable world.

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AUTOMOTIVES

SKODA FABIA HATCH SE 1.0 TSI 95 PS 5 speed manual RRP ÂŁ15160

S

koda are a brand that I have had the pleasure of reviewing for several years now, and I have never been disappointed with them. This month, we are looking at Skoda’s award-winning Fabia, which is loaded with standard equipment even at entry level.

However, the SE is the next model up, and if I were looking to buy one, I would start from the SE model, as it comes with additional gear such as a steering wheel with radio and telephone controls. You also gain rear parking sensors, which is a real bonus.

The Fabia is a little car, but it feels big on the inside. There is plenty of leg and head room in both the front and rear, due to its boxy exterior.

Skoda now has a brand look that echoes throughout the range, including distinctive headlights and grilles, which I am a fan of.

The colour range is also stunning, with many combinations and extras available to give you a custom car just to your liking.

The engine is a 3-cylinder petrol, which gives enough punch to be a very drivable car. I was 96 | Endeavour Magazine

surprised how quickly it got to 70 and beyond in fact, often I was going faster than I intended.

There are four engines to choose from and they are all 1.0 petrol, but with varying outputs.

In manual, you can choose from 75 PS, 95 PS and 110 PS, or 100 PS DSG in automatic.

Skoda works hard to produce extremely safe cars, and as a part of this effort, each model of the Fabia comes with six airbags as standard. All models have radar front assist, located in the front bumper, and the car provides an audio and a visual signal to warn of possible impending collisions. If the driver fails to respond, the system initiates braking to minimise any potential impact.

The Fabia represents enormous value for money, providing a good-looking, fun and comfortable car that is incredibly capable. This car is thousands of pounds cheaper than many of its rivals and offers so much more, including an umbrella under the passenger seat - how lovely and thoughtful!

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BRIDGING THE GAP Barbados Port Inc chevron-square-right www.barbadosport.com phone-square 001 246 434 6100

The Port of Bridgetown juggles many responsibilities, from import and export to being the first impression for many Barbados-bound tourists. These needs are catered to by Barbados Port Inc., a company that not only successfully manage this bustling world unto itself, but also continually invest in expanding what this varied port can do. We returned to the deep-sea port to see how those plans are panning out.

Written by Alice Instone-Brewer

T

he Port of Bridgetown carries a vast weight of responsibility; through these doors and over these decks pass 90% of the country’s imports and exports. This includes not only goods but also the arrival of tourists, who feed so much of the country’s economy; not only is Bridgetown a trading hub, but it is the only port in Barbados capable of accommodating large cruise liners. This much reliance on one facility may seem like a gamble, but Barbados Port Inc. – the company responsible for maintaining and operating this vital site – do not fail to deliver. Staying in stride with technology and dodging curveballs such as hurricanes and the 2008 crash, the Port of Bridgetown has proven that it has resolute sticking power, no matter how the tide turns.

The Deep Water Harbour was opened in May 1961, in a ceremony conducted by contemporary West Indies Prime Minister Sir Grantley Adams. The construction project was the fruit of combined efforts between Barbados and the UK, with British technical experts and consultants working alongside the Barbadian workforce, and much of the funds for the project coming from London or the British government. The result was an uncannily smooth operation, with construction Endeavour Magazine | 101

BARBADOS PORT INC

completed without incident – a surprising achievement for the time, for a project of this size and complexity.

As a part of the Deep Water Harbour’s creation, land was artificially built to join what was then known as Pelican Island to Barbados’ mainland. The joining of this island, which used to serve as a quarantine station for passengers and cargo reaching Barbados, added some 90 acres to the mainland in total, the island having originally laid 600 yards out to sea. Amongst the other challenges faced by the construction team was the sheer scale of the project: some 30,000 blocks were used to build the structure of the harbour, weighing up to 20 tonnes each.

The blocks were so heavy, railway lines were laid specifically to transport them from where a batching machine created them to the shore.

However, the biggest and most notable piece of equipment used for the build was a cutter suction dredger, needed for the cutting and fragmenting of hard soils below water. Named

‘The Barbados’, it was the largest and most expensive piece of equipment that had ever entered the island, valued at a duty-free cost of $1,920,000.

In his speech at the harbour’s opening ceremony, Sir Grantley said, “We are living in a world that is shrinking”, a comment that has seemed only increasingly true since. He continued, throwing a little judgement at some of the 1960s’ other areas of progress; “While others are playing about in searching out new planets, we are ensuring that export to and from this island is made far easier for all.” He was, of course, referring to the Space Race - whilst the construction of the Deep Water Harbour didn’t compare to this race in terms of cost, and wouldn’t quite make the history books, it was a game changer for transport cargo in the area. The build saw around 600 workers regain their jobs – a vast boon to the area – and in its first year of operation, the port handled approximately 175,000 tonnes of cargo.

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BARBADOS PORT INC

In its sector and region, the Harbour has continued to make history. Today, its employees handle more than one million tonnes of cargo every year, on top of receiving over 700,000 cruise passengers. With the space to accommodate five mega cruise ships at a time, and luxurious facilities for visitors to enjoy (including all-important elements such as duty-free shopping and air conditioning, as well as popular extras such as live bands and free rum samples!), the port is a comfortable and colourful welcome to the island and all it has to offer. After all, a travel terminal may be a hub of logistics, but it is also, for many, that crucial first impression of a new city or country, the importance of which can never be underestimated.

True to its name, Bridgetown Port is often just that – a connector. Many of the holidaymakers treading the port’s boards are in the area purely as a means from A to B. For example, many European travellers fly to Barbados in

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order to take a cruise, rather than to experience the island itself. Barbados Port Inc. hope that by encouraging some of these holiday-makers to slow down and enjoy their time in the port, potentially arranging to stay there before or after their cruise as an extension to their holiday, Barbados can attract some extra cash flow into the economy.

As well as improving their visitor facilities, Barbados Port Inc. are working to improve their technology across the board, modernising as well as making bold efforts to go green.

The main focus of these green advances is the move from diesel power to electrical.

They also involve a co-operative effort with RightShip, which will in turn invite the vessels docking in the port to participate in the drive by monitoring their emissions and rewarding efficient energy ratings with bonuses such as lowered docking fees.

Efforts to modernise have also included updated computer systems such as KleinPort,

BRIDGING THE GAP

the company’s latest Port Management Information System, created by Saab Technologies. The software allows the port to streamline their operations electronically, removing miscommunication between departments and assisting in the smooth delivery of cargo processing such as managing cargo manifestos, dangerous goods handling, errors and omission processing and commodity code mapping, as well as allowing customers to track their cargo shipments from their own offices. The system also allows the smooth processing of other port logistics such as vessel scheduling, berth planning, conflict resolution, waypoint and route management, the allocation of staff or ships such as the assigning of pilots and tugs, and even processes such as billing.

Finally, the port is modernising in terms of equipment, having recently spent a massive $100 million on the restoration of the facility, as well as acquiring five straddle carriers and a new

Panamax gantry crane, amongst other pieces.

They are also digging and building to expand their capacity yet further, to accommodate bigger cargo vessels alongside their impressive cruise capabilities. Lastly, the port has made the decision to remove tariffs on exports, to encourage greater trade out of the country – a move that will benefit Barbados as a whole, and in doing so, the port.

From optimistic beginnings, backed up by hard work and strong investment, the Port of Bridgetown is living up to the dreams of its founders. Staying ahead means constant transformation, and Barbados Port Inc. have spared no effort or expense.The port’s ambitions are far reaching and all-encompassing, but they have the pieces in place to continue to make them into realities. As always, Endeavour look forward to seeing what lies in store for Bridgetown. If their progress is anything to go by, it sounds like we’d better start booking our tickets!

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EXPERIENCE THE SUPPORT Kanu Equipment chevron-square-right www.kanuequipment.com phone-square 0027 83 630 2301

Support: it’s an essential part of service operation and discipline, and what sets Kanu Equipment apart. In equipment rental, service and maintenance can make the difference between a streamlined or distressing customer experience, and yet in Africa, it has been sorely lacking within the industry.

Masterfully, Kanu Equipment have filled this gap securing their pathway to success.

We spoke with company founder and CEO Stephen Smithyman, to catch up on Kanu’s latest developments, and what is continuing to set this company apart

Written by Alice Instone-Brewer

F

or a young company, Kanu Equipment have an impressive reputation. In essence, they sell and rent heavy equipment and related aftermarket replacement parts, but the services they offer go far beyond this. The seven-year old company quickly carved out a space for themselves in the equipment rental field for Africa’s key heavy industries, including agricultural, forestry, mining, earthmoving, construction and road construction. With well-established competition to contend with, Kanu took on these markets by going the extra mile for their customers, providing support and maintenance that was much needed across the continent. When working in some of Africa’s most remote locations, this support can literally be operation-saving, and the loyalty this has won Kanu speaks for itself.

Kanu Equipment have forged strong working relationships with several large equipment manufacturers: Bell, Liebherr and Wirtgen, who focus mainly on the construction and mining industries, and Case Agriculture, providers of top of the range farming and forestry equipment. Kanu’s entrenched relationships afford them the ability to keep high-end equipment available for their customers, as well as a generous supply of related spare parts.

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KANU EQUIPMENT

This allows them to provide a maintenance support service of their own, and Kanu provide consignment stock on the ground in order to ensure that the equipment is working optimally and downtime is kept to a minimum.

“Our stated ambition is to lower our customers’ cost of doing business. In part, that’s through the support we provide. Our slogan is “Experience the Support”, so we like to differentiate ourselves by being a support organization to our customers in the hard areas where they do business”, states Stephen Smithyman. The ability to have access to spare parts on site can mean the difference between a minor hiccup and a costly delay.

This is true anywhere, but particularly in some of the remote and far-reaching locations where Kanu’s African clients do business. “We’ve got a very good, special relationship with all our OEMs, and have maintained this relationship because we provide a good service on the ground. Previously, African customers would

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accept the fact that in these countries, they needed to provide their own support.” Kanu’s competitors are largely still operating by this old model, meaning that their clients must source and stockpile their own spares, or else must source specialist maintenance support in their often-remote sites of operations. “What has fundamentally changed now is that the world has become a smaller place, and customers are expecting first-world support. Companies need to adapt to that or I believe that they will die.”

The company started out in DR Congo, followed by rapid expansion into West Africa, Botswana and now East Africa. “We basically started out in the hardest countries to do business in, and then worked our way around.”

The idea for the company came to Smithyman in DR Congo when he encountered his own difficulties in hiring equipment for a mining exploration project. “We were trying to find a bulldozer to rent. We couldn’t find one, and then when we eventually did, the rental rate was really high.”

“What inspired me to start the company initially was that I saw there was a real lack of support for people who are running or using machines in some of the markets. I was optimistic about the business opportunity – I knew that if we could provide exceptional support and service to our customers, we would succeed. What inspires me now is that we employ over 570 members of staff across 14 countries, who very often work in difficult situations and those are the people that drive me to continue to grow this business so that their lives and that of their families can be bettered.

Smithyman’s praise of his employees is well-deserved. The Kanu name is inspired and derived from an old African tale ‘Kanthu N’khama’, a story about a small but brave and resourceful bird that flies into a dark and foreboding forest, where it overcomes challenges to emerge wiser and more resilient.

It is the story of how ‘hard work pays off’ and is the ethos that is felt throughout the company from their operational decisions and expansion plans right down to the daily choices of their employees.

KANU EQUIPMENT

Kanu’s dedication has pushed them to heroic acts of service: whilst expanding their operations, Kanu moved into several areas that were in the throes of dealing with the Ebola virus crisis. Instead of leaving their customers unsupported, they stayed firm. Truly going above and beyond the call of duty, Kanu proved that they value their customers as people, and that their promise to provide support would hold true however desperate the conditions.

“We showed our customers that we were prepared to support them even in the middle of a crisis. Many of our staff put their lives at risk to provide that support.”

Despite stormy waters, Kanu’s loyalty to their customers has led to success in every market they move into. “Some markets are very new for us, whilst other markets in places like Botswana had more established customers. We’ve been very successful in a variety of countries all for different reasons but with one common theme that we represent some fantastic quality brands and we provide exceptional customer service.” As well as spreading their on-the-ground support throughout Africa, the company also has a physical presence in Europe, allowing them to reach the decision makers of larger industrial groups whose African branches are on their client list: “We’ve got a marketing arm in Switzerland, and we reach quite a few customers out of our Switzerland office. Those customers who want to buy in spares themselves, or work in other areas where we aren’t currently present. Companies have lots of decision makers based in Europe, so our sales arm in Switzerland visits these decision-makers.”

This face-to-face contact is important, and Kanu are constantly branching out to increase this physical presence even further. As they often do at ambitious rates, Kanu are once again looking to expand, taking their physical support to existing markets in previously unentered countries. “In Tanzania, we’ll be very successful – we have a very strong customer base and support base there. Kenya is also a very exciting market for us, because there are a lot of machines sold in Kenya every year, so we’re hoping to gain market shares there.”

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Another exciting expansion plan is currently Namibia. “We are now the largest independent Liebherr Mining dealer in Africa as we represent Liebherr Mining in Namibia and Botswana.

We’ve got five customers currently operating Liebherr Mining machines in Namibia. We believe there’s a lot of strong growth potential for mining in Namibia, especially now as the prices have picked up a bit. Those customers have not been supported as well as they should be in terms of stock and service. What we are going to bring to these customers is a level of sophistication around our IT system, around the support we can give them, and around the spares that we will put there on the ground to support those customers. We believe it will be a win-win for us, those customers and the market. Everybody’s really excited for the launch.”

Of course, not even Kanu can expand indefinitely. “Next year will be a consolidation.

The year after, we will look at expanding further, but only if we get the support we need. Largely we would look at going further into Africa – it is where we are mostly based, and where our customers want us to be. Over the next few years, we aim to be in 18 different countries, and then we’ll look at listing the business on the stock exchange. We want to double revenue every year – that’s our plan.”

It’s an ambitious plan, but given the loyalty they enjoy from their markets and suppliers, it’s a goal that is well within their grasp. True to their mantra, however, their own growth isn’t the only one that interests Kanu. Project Hummingbird, taking its name from Kanu’s inspired logo, is a proposed initiative that will allow Kanu Equipment to empower and establish a network of entrepreneurs that will serve as independent spare parts suppliers for their products. “Project Hummingbird has been set up to finance local entrepreneurs. We will buy a container and give them training and IT support, allowing them to open up their own spare parts business in their area. We’ll give all the technical backing, spare parts and spare parts knowledge, and they will operate like a distribution centre for us. Through Project Hummingbird, we believe we could

EXPERIENCE THE SUPPORT

create about 1000 entrepreneurs throughout the continent.”

“Training is a very important part of our service offering. It’s arguably one of the biggest parts of our business. Making sure that local staff are trained well means we have an opportunity to grow.” This project would not only contribute to Kanu’s operations and the number of customers their support services can reach, but would also create jobs and serve as a boost to local economies. They are running feasibility studies on the proposition, and are hoping to receive government backing to supplement their own contributions. If successful, the project will be a fantastic boon to Kanu, but it will also be a lifechanging one to the entrepreneurs empowered by the programme. Once again, this dynamic organisation will not only achieve success for itself, but will ease and enable the industries and business around it, truly allowing Africa to ‘Experience the Support’ like never before.

Experience the Progress.

www.liebherr.com info.lex@liebherr.com www.facebook.com/LiebherrConstruction

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SEEKING HIGHER THINGS Davis & Shirtliff Group chevron-square-right www.davisandshirtliff.com phone-square 254 020 6968 000

Remaining successful and relevant after 70 years proves that a business has more than just good oldfashioned experience behind it; it can adapt. We spoke with Davis and Shirtliff, an East African provider of water-related equipment: for this well-established company, innovation and continuous improvement are watchwords that is clear to see in its expansion and success. We spoke with Group Chairman Alec Davis, son of the company’s cofounder, to learn more about its ongoing journey.

Written by Alice Instone-Brewer

D

avis and Shirtliff was founded back in 1946, following the end of World War II

by Eddie Davis who had served in the military in Nairobi who upon leaving purchased a small, independent local plumbing and water engineering firm. Through a partnership with his friend Dick Shirtliff, the two men took this company - RH Paige & Co - and grew it into what seeded the successful and wide-ranging Group that stands today.

From this small start, the Davis and Shirtliff Group now owns a network of nearly 70 branches in eight regional countries: Kenya, Uganda, Tanzania, Zambia, Rwanda, S Sudan, Ethiopia and the DRC. It also exports to many other regional countries including Malawi, Somalia, Somaliland, Zimbabwe and several countries in West Africa. This wide network of locations distributes a range of related products that provide comprehensive water and energy solutions that covers water pumps, boreholes, water treatment, swimming pools, generators, solar equipment and irrigation. As Alec Davis told us: “We have a great advantage and strength from our branch network. We also have a very wide product range at various levels, from volume products for the mass market Endeavour Magazine | 113

DAVIS & SHIRTLIFF GROUP

to more specialised industrial products in all these different fields. We’re also adding new branches and products all the time, so it does keep us ahead of the game.“ Early operations of the company largely involved work with the agricultural sector and local water supplies - areas that then had growing demand. From here, the company moved on to expand into water pump supply, and this has remained a key area of the Group’s operations ever since. As Alec told us, “We offer a wide range of pumps for any application you can possibly imagine, and that is the core part of our business.” This range of pumps includes those suitable for everything from drinking water to swimming pools aupplied from three principal sources including Grundfos, one of the world’s largest pump industry players, Pedrollo, an Italian manufacturer of quality domestic and commercial pumps, and also a wide range of its own pumps under the “Dayliff” brand. These supplier relationships have been long and

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consistent; the company has stocked Grundfos for over 50 years, and Pedrollo for over 25.

Whilst strengthening existing activities the company is always looking for new opportunities. “We have three values,” Alec explained. “One is quality, one is integrity, and the other is my old school motto: ‘I seek higher things’. Basically, it’s a focus on continuous improvement, innovation and creativity, which we’re all very focused on. It’s important that we keep moving forwards every year. We are, within the region, an industry giant, and this value is what has taken us to where we are.”

Looking for new opportunities, some years ago the company expanded their business by branching out into water treatment. This is now a major activity that continues to be a growth focus: “We’re now moving into high-tech water treatment such as ultra-filtration and reverse osmosis,” says Alec. Water treatment is just one area of technology focus, and these initiatives do more than increase business volumes, they also add considerable value for their customers.

Davis and Shirtliff serves a wide customer base of private sector, NGO and government institutions across all industries and sectors, all of whom depend on the company for their essential water supplies.

“I’ve been in the business for so long, the market has changed beyond all recognition.

However, we’ve always been in water, we’ve always worked with the public sector and we take pride in the number of projects we’ve done that provide water to deprived communities. It’s a part of our history.” One of the most important technological advances for Davis and Shirtliff has been its move into solar technology specifically to power solutions in water heating, power generation and solar pumping. These technologies have been widely applied including hundreds of solar pump installations in remote arid sites that transforms the lives of the local communities.

“We have completed some significant projects for various agencies across the region including UNICEF, World Vision, Kenya Red Cross and the Ministries of Water in several countries including Uganda, Somalia, Ethiopia and the DRC.

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Artist’s impression of the new Davis & Shirtliff Distribution Centre

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DAVIS & SHIRTLIFF GROUP

“We recently completed five large-scale solar pumping installations in north-western Uganda that included pumping systems, distribution piping and storage tanks for the Danish Refugee Council. Before, it was an undeveloped area with little water availability.

Now, these water supply systems have really improved these communities’ lives, most of whom are refugees.” The other recent major project of this nature was in Kenya, where the Group carried out 100 small-scale solar installations for one of the counties that benefited schools, health centres, community centres and government institutions. “This has made a huge contribution, as many of these sites didn’t have water beforehand.”

This new technology provides reliable water supplies in areas that were previously unable to access the power to support such infrastructure, and it is this sort of innovation that continues to place Davis and Shirtliff at the front of the industry in their region. The Group also utilises

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its decades of experience to combine the old with the new and bring clients the best of both worlds. One of their earliest and still most important activities is the supply of a wide range of borehole equipment: “We are the leading supplier in the region, boreholes being one of East Africa’s most important sources of water; there isn’t much surface water and there isn’t much rain, but there is ground water, and our equipment is used in many thousands of sites that capitalizes on this important resource.”

70-plus years in the industry has seen Davis and Shirtliff develop an enviable reputation, including for being a technology-leading organization. Thanks to this, the Group is frequently approached by various suppliers with new products and ideas that are rigorously reviewed by a Product Committee that selects and introduces those with potential and keeps a regular flow of new product initiatives.

Another innovation has been the in-house development of a series of Apps, including one

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Proud to cooperate with Davis & Shirtliff

called D&S FLO that is freely available on line that details all products with their specifications and performance and enables digital selection.

“It’s quite advanced – even our European suppliers have nothing like it, so it does give us a great advantage in the marketplace.”

Davis and Shirtliff’s growth has been steady, the result of consistent quality and the tireless pursuit of self-improvement. Alec joined the family business 43 years ago, was CEO for 25 years and is now the Chairman. “We’ve grown organically. Obviously, when I joined, it was a much smaller company: the number of pumps we sell has increased 100-fold since the late 70s. We haven’t grown by acquisition – it’s been consistent growth each year driven by the region’s huge economic development that has helped create these opportunities.”

Asked why the Group has managed to be so consistently successful and become such a major regional force Alec identifies two factors, “The first has been an incredibly loyal

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and dedicated workforce, many of whom have served for over 25 years. We now have nearly 800 staff and the combination of progressive employment policies and interesting careers makes the company a good place to work.

For example the Executive team led by CEO David Gatende, have several hundred years of service between them and this experience has been a huge asset. The other reason is a focus on systems where the company has invested in world-class IT solutions that have been developed in-house. This provides the controls and processes that enables efficient operation of such a diffused and complex organization�.

The company continues to grow. In a clear example, it is currently constructing a new $5 million distribution centre as its operations have outgrown its current facilities. The border procedures between Africa’s many countries make the logistics of shipping around the region extremely complex, which is why stock on the ground in key locations is so essential. As well

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as investing in this, the company continues the process of establishing new branches, recently in Kenya, Zambia and Tanzania, as well as introducing a new range of irrigation products and the expansion of their industrial chemicals range.

After 70 years of dedication to innovation, it seems unlikely that Davis and Shirtliff will slow down any time soon. Water and energy solutions remain critical resources throughout Africa, and wherever there is need Davis and Shirtliff is confident that it will continue to make an important and growing contribution in the region.

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