AUG
2012 ISSUE 3
We Always Deliver... JOE FORSHAW SPEAKS EXCLUSIVELY TO DAVID WILLIAMS, MD OF MAERSK SA
ANGLO AMERICAN
DIGGING DEEP TO INSPIRE A NATION
LATERAL UNISON
RISK MANAGEMENT WITHOUT THE RISK
FAIR CAPE DAIRIES UDDERLY ECO-FRESH MILK
LONDON INTERNATIONAL WINE FAIR SA’S GRAPE DEBATE
CHOC20042012_LSMSINGLE
Please assist us in “Keeping more than hope alive.”
If you detect any of these warning signs in a child, please SMS the name of your province to 34486. A CHOC representative will contact you shortly thereafter. (SMS cost R2)
To donate R10 a week to CHOC, simply text the word “CHOC” to 37261.
Your pledge will run concurrently until YOU elect to opt out. (Standard rates apply)
Contact us tollfree at 086 111 3500 or visit our website at www.choc.org.za
Many children in our country are never diagnosed because their symptoms are not recognised, or they are diagnosed too late for effective treatment. To help solve this problem, the South African Children's Cancer Study Group has prepared this list of Warning Signs, for distribution to primary health care centres. CHOC has supported the printing and distribution of posters. They have been adopted by the International Society of Paediatric Oncology (SIOP), for distribution throughout developing countries. CHOC is a member of the International Confederation of Childhood Cancer Parent Organisations www.icccpo.org
EDITOR’S PAGE
EDITORIAL EDITOR Joe Forshaw WRITERS Colin Renton Tim Hands Roland Douglas PROJECTS MANAGERS Sam Kennerley Alicja Lewanczyk Leslie Kemp Daniel Sizeland Janis Billington ADVERTISING SALES David Hodgson Chris Bolderstone STUDIO STUDIO DIRECTOR Vishnu Joory LEAD DESIGNER Ian Williams STUDIO MANAGER Michelle Cassidy OFFICE MANAGER Tricia Plane ACCOUNTS Dionne Smith Jane Reeder IT IT DIRECTOR John Bullimore ECP LTD MANAGING DIRECTOR David Hodgson OPERATIONS DIRECTOR Chris Bolderstone FINANCE DIRECTOR Scott Warman Ferndale Business Centre, 1 Exeter Street, Norwich, NR2 4QB If you would like more information about ways in which IndustrySA can promote your business please call +44 1603 618000 or email info@industrysa.com East Coast Promotions Ltd does not accept responsibility for omissions or errors. The points of view expressed in articles by attributing writers and/or in advertisements included in this magazine do not necessarily represent those of the publisher. Any resemblance to real persons, living or dead is purely coincidental. Whilst every effort is made to ensure the accuracy of the information contained within this magazine, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrievable system or transmitted in any form or by any means without the prior written consent of the publisher.
Welcome to the third issue... One thing that has become rare because of the rise of technology and social media is people meeting, face to face and talking about business. At IndustrySA we understand how important, influential and fun it can be to meet people and talk in person. This month we had the chance to do just that with the best wine producing businesses in South Africa at the London International Wine Fair (LIWF). We will be looking at some of the best South African wines on offer from the LIWF. On a recent trip to the USA I was happy to find many South African products and brands standing out in the market and it made me consider how the world is constantly becoming a smaller place thanks to technology. It is clear that taking advantage of these technologies can provide a huge benefit to any business, whether it is making things more efficient or opening up a whole new market place. While taking the personal touch out of some business activities, technology is a vital tool and we will look at the impact it has on SA businesses every day. As I mentioned last month there is such a push towards ‘greener’ business activities it is unsurprising that one of the world’s largest mining companies has started testing its new innovation which will contribute to lowering their carbon footprint and potentially solving energy difficulties across the country. Read more on page 12. We continue to look at world leading companies and speaking to their managing directors to understand what makes South Africa a hub for business success. Shell are one of the world’s foremost oil companies and one of South Africa’s largest petrochemical companies and we review their activity and history to see what keeps them moving forward. Enjoy this month’s installment
Joe Forshaw
editor@industrysa.com
© East Coast Promotions Ltd 2012
AUG 12 PAGE 3
CONTENTS
14 3 EDITOR’S PAGE
Tech and green issues dominate!
6 NEWS All that’s happening in South Africa 10 ENTREPRENEUR Greg Illingworth, BM-Xpert 12 INNOVATION Angloplat on the right track 14 AUTOMOTIVE EXCELLENCE The ride of your life. You’ve earned it 18 LONDON INTERNATIONAL WINE FAIR The South African grape debate
PAGE 4 AUG 12
30 24 ANGLO AMERICAN
64 FAIR CAPE DAIRIES
30 MAERSK
70 MTN
36 LATERAL UNISON
76 NAMPAK DIVFOOD
42 FRUITONE
82 CROSSROADS
Digging deep to inspire a nation Sailing the seas to ease your needs Risk management without the risk Feeling fruity? Here’s the solution…
50 JHI
Seeing property differently
56 CONCARGO
25 years and still trucking brilliant
Udderly eco-fresh milk
Connecting a continent Can you? We can
Terminating bad delivery service
88 SHELL SOUTH AFRICA
Innovating a brighter energy future
98 INDUSTRY RECOMMENDED This month’s showcased organisations
COMPANY REPORTS
CONTENTS
AUG 12 PAGE 5
NEWS A brief look at the issues making the news across South Africa. For more news stories visit industrysa.com
London 2012 – A generation inspired? The Olympics in London came to a spectacular conclusion last week and the South African team came away from the games with a lot to be proud of. The games of the 30th Olympiad sported the motto ‘inspire a generation’ and while the performances of athletes such as Chad Le Clos and Oscar Pistorious may have gone some way to achieving this for South Africa there is still a long way to go to boost South Africa up the medal table in Brazil in four years time. Six medals in total, 23rd in the overall table, a vast improvement from the 2008 games in Beijing where the team finished in 70th place with just one silver medal. This time around Chad Le Clos took a gold (200m fly) and a silver (100m fly) in the pool with team mate Cameron Van de Burgh (100m breaststroke) also taking a gold in the water. Bridgette Hartley picked up a bronze in the women’s kayak single 500m sprint and the men’s lightweight four rowed to gold edging out the favourites, Great Britain in a tense finish. Sunette Viljoen also put in a brave display, finishing fourth in the javelin, only centimetres behind the bronze medallist. Caster Semenya, South Africa’s strongest medal hope, could only manage silver in the 800m but as the road to Rio 2016 begins there is a lot of hope that team South Africa can climb further up the medal table after producing strong displays in hockey, cycling
PAGE 6 AUG 12
and athletics. There have been questions from some media outlets as to how a country with a population of nearly 50 million can finish behind countries such as Gerogia, Belarus and Cuba, nations with much smaller population figures, and calls have been made to boost sporting participation across the entire nation. Overall the games were successful for South Africa and one man in particular inspired not just South Africa but the whole world. Oscar Pistorious became the first ever amputee runner to compete in an Olympic games. He finished eighth in his 400m semifinal and in the 4x400m relay final Pistorious and his team also came home in eighth place. The whole team received a warm welcome home when they arrived back in OR Tambo International Airport. Mass groups of fans had gathered to embrace the returning athletes as they made their way through the airport. Children and adults alike cheering and blasting vuvuzelas, especially as Le Clos and Van de Burgh, who had arrived home three days before the rest of the team, joined their colleagues. Jimmy Manyi, government spokesman, said that the whole country was proud of the athletes and encouraged people to wear team colours to honour the hard work of the men and women in London.
NEWS
New Eastern Cape wind farm from renewable energy company MetroWind In September MetroWind, a South African renewable energy company, will begin building a 27 megawatt wind farm outside Port Elizabeth in the Eastern Cape. The site is located in Van Stadens, between Port Elizabeth and Jeffrey’s Bay and construction will cost R550 million. The company says it has received final approval from regulatory authorities and the Nelson Mandela Bay municipality. When the project is completed in October next year the site will be known as the Metrowind Van Stadens Farm and it will supply the municipality and Eskom with power. It will also be the first fully functional commercial wind farm in the Province. The farm will consist of nine, three megawatt turbines and these will provide 80 million kilowatt hours each year to the local electricity grid. This will signal a big step towards the government’s green energy targets. MetroWind director Ian Curry told Algoa FM in a
recent interview: “It’s about clean, renewable energy that’s being generated, the country’s in dire straits when it comes to generation capacity. We will be adding another 27 megawatts to the grid – 80,000 megawatt hours of electricity that will provide electricity close to source, to around 5000 to 6000 homes. “That energy will be reducing our carbon footprint and saving a lot of water as well,” MetroWind, which is 35% black owned, was chosen by the government as a preferred bidder for the construction and operation of commercial wind farms and now has a license to generate power by the National Energy Regulator of South Africa. While the company holds the license over the next 20 years they plan to put R50 million into local communities and allow those communities to own stakes in the large scale, energy producing sites.
AUG 12 PAGE 7
NEWS A brief look at the issues making the news across South Africa. For more news stories visit industrysa.com
The Grand Inga hydro-electric project South Africa and the Democratic Republic of Congo have reached an agreement on the development of the Grand Inga hydro-electric project. The Cabinet recently approved a draft treaty between the two countries and the project could become the world’s largest hydro-electric project. The Inga project is set on the Congo River and is expected to generate 40,000MW of electricity. Experts said at a briefing in Pretoria that the project has the ability to generate clean electricity for the DRC and surrounding nations, including South Africa. The draft treaty was drawn up to develop an enabling
PAGE 8 AUG 12
framework, linking the DRC and South Africa into the Grand Inga Project, and allowing for the two countries to jointly explore different economically feasible options for the development of the project. “The project will form part of South Africa’s government strategy to promote renewable energy in the region, contribute to a reduction of carbon emissions, ensure security of supply and to develop energy infrastructure on the continent and the SADC region in particular,” said Cabinet spokesperson Jimmy Manyi.
NEWS
Nestlé open new factories in South Africa 130 new jobs have been created as Swiss multinational food company Nestlé opened two new factories in South Africa as part of the company’s R500 million investment into its SA operations. The factories opened in Babelegi, north of Pretoria and will boost production of Nestlé cereals (Cheerios and Milo) and add new production lines for Maggi noodles. The majority of the ingredients used in production will come from local farmers and suppliers. Of the R500 million investment around R47 million will be used to upgrade the current coffee creamer factory, also in Babelegi. The new facilities mean that products will no longer have to be imported into the country and 300 in-direct jobs will be created over the next 20 months, to go along with the 130 permanent jobs that will be created when the factories are up and running. “This investment is one of the several investment opportunities that has taken place recently in South Africa by a global multinational company in the agro-processing area and it is reflecting the fact that we as the South African government are trying to position ourselves and deepening the presence of agro-processing in our country and companies,” said trade and industry minister Rob Davies. Nestlé have a long history in South Africa and Africa as Paul Bulcke, Nestlé Global CEO, said: ““We have been
present on the African continent for more than 100 years, and we see great growth opportunities for the future.” The company is looking for growth, sustainability and economic development and sees investment in South Africa as a perfect route to achieving these goals. They already partner the South African government on scientific research projects and have 12 sites and four distribution centres with a total of 3700 employees across the country.
Trekking for Trash Trekking for Trash is a 3000km trek on foot by social change adventurers Michael Baretta and Camilla Howard along the South African coast line from Alexander Bay on the Namibian border, to Kosi Bay on the Mozambican border. The trek will take approximately seven months and will see the duo collecting and recycling litter while engaging with and educating communities along the way. The intention of this expedition is to get people to notice the amount of litter in our country and to create an awareness of the impact it has on the environment so that they will ultimately stop littering. Michael and Camillia both gave up their careers in business to pursue the ‘Trekking for Trash’ campaign and their idea has attracted attention from high profile sponsors such as Nampak Divfood. For more about the amazing project and Nampak Divfood see page 76.
AUG 12 PAGE 9
ENTREPRENEUR
Someone a little bit different... By Roland Douglas
Greg Illingworth is a different kind of entrepreneur. Young, athletic and living his life to the maximum - a good example for young business people.
Greg Illingworth tweeted recently: “What a day riding bikes.” This is because he is one of South Africa’s (and probably the worlds) best BMX riders. His hometown of Johannesburg is one of his favourite areas to ride on the street and although he now lives in the UK his South African heritage has drawn our attention to him as a business man. Away from the ramps, jumps, bumps and wheels Mr Illingworth runs a shop and mail order business in the Kempton Park area. The business is all about BMX riding with the shop selling bikes, accessories, fashion pieces and giving out tips and advice all year round. Because he is such a prominent figure within the sport he was selected by Mongoose (a leading brand in the sport) to promote BMX riding in areas that have been slow to take up the activity. In the last two issues of IndustrySA we have looked at Mark Shuttleworth and Patrice Motsepe as great entrepreneurs and although their financial clout maybe heavier than that of Mr Illingworth being a good business
PAGE 10 AUG 12
man and entrepreneur is not only about how much profit you make. Similarly to Shuttleworth and Motsepe, Mr Illingworth started his business from nothing and has built it up over the years, with the help of a dedicated team, to become a healthy entity of its own, thriving while he is away in the UK and competing in competitions around the world. The reason why he is slightly different is simple. You will not see him in a suit, you will rarely see him in an office, you will not see him number crunching and taking margins, you will not see him in board meetings. His passion is BMX riding and starting his business has not forced him to detract from that passion. It is refreshing to see in the business world, although the shop is doing well Mr Illingworth still pursues his BMX riding and has not become dogged down with an endless pursuit of profits. His commitment to his sport make him the ideal person to head up the business as his knowledge is unrivaled when it comes to products and ideas relating to BMX. The shop, named The Riot, is at Festival mall skatepark
ENTREPRENEUR
You will not see him in a suit, you will rarely see him in an office, you will not see him number crunching and talking margins, you will not see him in board meetings
in Kempton Park and customers can go into the store or go online and have products mailed to all parts of South Africa and neighbouring countries. The business began in 2002 with Mr Illingworth and his team selling BMX parts from the boot of a car. Now the business is a centre of support for the whole riding scene in South Africa, aiming to bring positivity to the BMX community through a team of experienced professional riders who offer help with parts or apparel wherever needed. Mr Illingworth is the owner of The Riot but very much part of the team that makes it successful and it is this team-spirit and focus on community that makes him an astute business man. If he had tried to run the business by himself with all of his other commitments it would have never taken off. The trust in the team and the eagerness to bring people with the same interests together are perhaps reasons why the shop is thriving and continuing to grow. The Riot sponsor local events and use marketing which is highly tailored and directed to relevant consumers. Although the main focus is on BMX riding there is a lot
of sound theory surrounding the way the business is run and innovative, new methods which make it stand out. Coincidence? We very much doubt it. As mentioned before, Mr Illingworth is perhaps not your traditional entrepreneur and perhaps does not have the image that you would associate with a business man but his story is that of commitment, innovation, team-work and success therefore making him no less worthy than any of the previously featured entrepreneurs in this section of the magazine. It is proof that no matter what your interests are, whether it is BMX riding, mining, technology or anything you can make a business success of it. Planning to give his full attention to the shop when he retires from riding, the 25 year old has stated that he also has expansion plans, hoping to open another store in the UK in due course. Mr Illingworth has been recognised around the world for his BMX riding skills and now he has been recognised by IndustrySA for his business success. He must be doing a lot of things right! â—?
AUG 12 PAGE 11
INNOVATION
Angloplat pioneers fuel cell technology in underground mining By Joe Forshaw
Anglo American Platinum tests a prototype for the first fuel cell powered underground locomotive. The development is a big step towards greener mining and efficient alternative energy sources.
Anglo American Platinum, one of the worlds largest mining groups, Vehicle Projects, Trident South Africa and Battery Electric have formed a partnership with the purpose of producing five fuel cell locomotives. The locomotives will be tested for underground use at one of Anglo American Platinum’s mines. The construction of these new underground trains demonstrates the company’s commitment to sustainable mining and climate change. With such a large focus in recent times on energy efficiency and job creation the platinum-based fuel cells represent a step forward, not only for Anglo American Platinum, but for South Africa as a whole. Cynthia Carroll, chief executive of Anglo American PLC and chairperson of Anglo American Platinum Ltd said; “The platinum-based hydrogen fuel cells offer one of the most exciting opportunities for South Africa and the green economy.” She also stated that a platinum fuel cell industry could support the country’s drive for new job creation. CEO of Anglo American Platinum Neville Nicolau commented, “These innovative locomotives will provide us with an opportunity to mine platinum in a more economic, energy-secure, and environmentally-benign manner. The locomotives will not require any electricity from the grid to function and will not emit noxious gases.”
PAGE 12 AUG 12
Anglo American Platinum is not the only company looking at the potential of fuel cells. Impala Platinum Holdings have also been studying the advantages of using fuel cells for industrial activity. “Within five years it should be possible to commercialise the fuel cell technology” said Anthea Bath, head of market development and research for Anglo American Platinum. So what exactly is a fuel cell? How is it so beneficial? A fuel cell is an electrochemical device that combines hydrogen and oxygen to produce electricity and heat. It provides power all the time and requires no charge time or re-charge time like the traditional batteries that it will hopefully replace. This, of course, means less downtime and more productivity. Fuel cells are seen as suitable technology for Africa where a large number of people still live without easy access to electricity and governments are looking to reduce their usage of traditional, coal-fired power plants which are historically not good for the environment, producing many harmful greenhouse gases. Anglo American Platinum is teaming with the South African government to further explore the potential of fuel cells. The emerging fuel cell industry is also of great interest to the Department of Science and Technology
INNOVATION
“ The locomotives will not require any electricity from the grid to function and will not emit noxious gases”
who’s vision of finding and promoting energy sources with a low carbon footprint is exactly in line with that of Anglo American Platinum and their vision for the new mining locomotives. Soon, after completing testing, the trains will be integrated into Anglo American Platinum’s daily mining operations. Quiet, efficient and capable of handling the same demand as traditional mining rail networks, the fuel cell locomotives will be a great addition the innovative transport profile already available at the worlds largest producer of platinum group metals. The trains will be used for underground transportation but will undergo
surface testing at the Khomanani mine to ensure safety and reliability. Anglo American Platinum found their partners after a global search and Vehicle Projects, Trident South Africa and Battery Electric were all organisations with a history and strong interest in fuel cell technology. The locomotives use Ballard PEMFC Energy Stacks, with platinum as a catalyst, for power. Mrs Carroll said: “This event marks a leap forward for fuel cells,” and if the progression continues then this ecofriendly advancement could be something we start to see a lot more of, not only in the mining industry. ●
AUG 12 PAGE 13
AUTOMOTIVE EXCELLENCE
Reap the rewards for your hard work By Joe Forshaw
McLaren MP4-12C Coupe
Take a look at our recommendations for the perfect automotive treat. We have carefully compiled a list of some of the most attractive and innovative cars out there and although they have large price tags they give you large enjoyment and fun all year round. The cars are not only beautiful but they are fashion statements which can say a lot about the type of boss you are.
Jaguar XKR-S Convertible The XKR-S is described by the company as ‘the pinnacle of the Jaguar sporting range’. It is the fastest and most powerful open-topped GT car that Jaguar has ever built. With a top speed on 186mph and a 0-60 timing of 4.2s this car has the impressive stats to go with the impressive looks. Adrian Hallmark, Jaguar Global Brand Director, states that: “There is nothing as liberating as life behind the wheel
PAGE 14 AUG 12
of an open-topped Jaguar and the new XKR-S Convertible takes the Jaguar GT experience to new heights.” The roof has the ability to open and close in just 18 seconds, it has been acoustically treated and it has been proven at the maximum speed. With the top down you are treated to race car inspired sound track, delivered by the Performance Active exhaust system. To be inside the car is something special, it offers a split between racing pedigree interior and high end luxury. Perhaps this would be expected from a company like Jaguar with a history of quality products. Critics might say that the optional extras are a little too expensive but reviews worldwide seem to come to same conclusion – the 5 litre, V8, supercharged engine is superb and ferociously fast, the ride is good and the steering is perfect.
AUTOMOTIVE EXCELLENCE
A lot of the time the work of a company director goes unseen. The small things that mean so much and take that extra hard work are the responsibility of managers and directors. At IndustrySA we understand this commitment and think you should be rewarded. Mclaren MP4-12C Coupe Mclaren Automotive has the vision of further establishing its presence in the global luxury sports car market following a period of unprecedented growth activity. The new Mclaren Production Centre was opened in 2011 by UK Prime Minister David Cameron and has since been producing the MP4-12C sports car at a rate of eight per day. The MP4-12C is a car which is loaded with Formula 1 racing technology. A lot of cars on the market describe themselves as racers for the road but this one truly has technology born on the race track. The car underwent testing around the world including on tracks in SA. Most of the details have been nailed down in Surrey, England. It is there that bespoke components including the onepiece carbon ‘MonoCell’ chassis, unique Proactive Chassis Control suspension system, race-derived Brake Steer and
McLaren Airbrake were first tested and tuned in unison. With the success of the Mclaren motor sport division and celebrity names Lewis Hamilton and Jenson Button in the hot seat of the Formula 1 cars, it is no surprise that the racing culture has been transferred to the road cars in order to continue growth and maximise output. This car has wild statistics: top speed is 330kph, 0-100kph in 3.3s and 100kph-0 in 30.5m. If you turn up at the office in this car you will wow not only your staff but everyone that sees you along the way (and everyone that hears you too). It is regarded by many to have the top ride for a sports car of its class; it is one of the fastest road cars on sale in the whole world and designed with the driver in mind.
Audi R8 e-tron The Audi R8 e-tron is an evolution of the original R8. It
AUG 12 PAGE 15
AUTOMOTIVE EXCELLENCE
Audi r8 e-tron
Aston Martin One-77
is different from the other cars on our list because it is in fact, an all-electric, high performance sports car. It is being developed in Germany and Audi is looking to have a preliminary fleet on sale by the end of 2012. “With the R8 e-tron, we are showing how inspiring electric mobility can be. Every system in this car has been tuned for maximum performance and range,” says Franciscus van Meel, Head of Electric Mobility Strategy at AUDI AG. Audi have ploughed massive financial resources into research and development of new products and future technologies and they are looking to be the world leader in the market for premium electric vehicles. This car has a sporting pedigree and has been seen on tests in the Nurburgring. Early indications are that the performance could be close to that of its brother the R8,
PAGE 16 AUG 12
which has a top speed on 187mph. With the massive focus on eco-friendly projects and the ever increasing price of oil, a car like this could be a big part of the future and Audi is carving out a first mover advantage. The government have already shown their commitment to green projects and with a car like this you will make a statement about not only fashion and speed but also care and innovation.
Aston Martin One-77 Aston Martin, one of the world’s most prestigious automotive organisations. The car that we have recommended from them is going to be a difficult one to get hold of. The One-77 is a flagship model for Aston Martin. It has a hand crafted aluminium body with a 7.3 litre, V12 engine.
AUTOMOTIVE EXCELLENCE
“ The fastest and most powerful open-topped GT car that Jaguar has ever built”
Jaguar XKR-S Convertible
There are very few in the Southern Hemisphere and only 77 made in the whole world. Marek Reichman, Aston Martin’s Design Director explained that this is because the body is made by hand beating the aluminium panels and the lines are very difficult to recreate using tools so everything must be done by hand. It is like a piece of art. A top speed of just less than 220mph is a statistic that speaks for itself. If you owned one of these cars you would probably not be bothered about your reputation or what your employees thought of you and the reality is that with a price tag of £1.2 million most of these cars will sit in garages for the majority of their lives. Just to pick up this car (if you were lucky enough to purchase one new) you have to travel to Gaydon,
Warwickshire in the UK for a key handover ceremony. This involves a darkened room, a booming specially commissioned soundtrack, a turntable device to house the car, a special smoke and light show and a one of a kind chandelier. The fact that some of the lucky owners of the One-77 have been rumoured to have recreated this arrangement at home, as an almost mad entertainment garage perhaps reflects the wealth of the 77 customers. With several international design awards under its belt it has been the subject of many video games and is sure to leave people dreaming of ownership for a long time to come. In upcoming issues of IndustrySA we will be revisiting cars and taking a look at luxury and executive saloons. ●
AUG 12 PAGE 17
THE LONDON INTERNATIONAL WINE FAIR
Great South African Grapes By Joe Forshaw
At IndustrySA we are passionate about South African business. When that business happens to involve wine it excites us even more. South African wine is now some of the best in the world and we have tasted some of the most tantalising tipples available. The London International Wine Fair (LIWF) took place in the Excel Centre, London, England between 22nd-24th of May. It offers over 20,000 wines, tastings, seminars, debates, awards, conferences and of course the chance to mingle with wine lovers from across the globe. There are wines on offer from every region imaginable. Old world and new world, and some more diverse locations that perhaps might not spring to mind when you first think of wine producing nations (Russia, Georgia, China). Of course a large selection of South African wines were on offer and IndustrySA was present to find the best on offer. We found the following wines to be truly wonderful in every aspect and the people that make them also made an impression as masters of their trade who care deeply about what they do. The Wines Of South Africa (WOSA) stand was of course the place to start as we began to discover more and more beauiful wine businesses…
BEST WHITE: Jordan Winery – Stellenbosch – Jordan Nine Yards Chardonnay 2010 – 14.5% A family owned wine estate, established in 1982, produces a great range of wines and the stand out for us was the 2010 Nine Yards Chardonnay. Made in a reserve style from a barrel selection
PAGE 18 AUG 12
of the best vineyard site. This wine is very easy to enjoy (perhaps a little too easy). Citrus flavours are complemented by a melon and peachy, tropical finish. It is topped off with a light butterscotch taste to give a hint of sweetness. Fantastic in every way, setting the benchmark for SA white wine!
BEST RED: DGB – Rib Shack Red – Pinotage/Shiraz 2010 – 14% Douglas Green, a name synonymous with quality wines and spirits, officially started trading in 1942 but the history goes back a lot further than that. Now one of the largest producers in the country the business is a real success. A vast portfolio of wines available but one that really struck us as a star was the Rib Shack Red, a blend of Pinotage and Shiraz. Very smooth and juicy it goes down well with meat and is designed for enjoyment alongside a braai or BBQ. Powerful with a strong nose it is a perfect partner for a steak. No bitterness and a dark, fruity taste with a touch of wood. A top pick from the DGB range and a great South African wine that will do especially well in the local market.
BEST ROSE: Tall Horse – Wellington Pinotage Rose 2009 – 12.8% Tall Horse is another brand from the DGB family and they must be doing something right
THE LONDON INTERNATIONAL WINE FAIR
South African wine exports have grown from less than 30 million litres in 1992 to close on 400 million litres last year
over there as this is another fantastic wine. Perhaps it is something to do with Oenologist Jaco Potgieter. One of the chief winemakers behind some of DGBs best brands. This wine is very fresh with ripe red berry aromas and soft spicy flavours. Grapes are fermented on the skins to capture that irresistible delicate sunset colour and crushed red berry flavour. Another one which is perhaps too easy to drink with none of the sourness that you might find with others in the same price range. You will see it fly off the shelves in the summer and for all the right reasons.
SOME OTHER FANTASTIC PICKS: Hartenberg Wine Estate – Stellenbosch – Cabernet Sauvignon 2007 – 14.6% Established in 1692 Hartenberg Estate has always had very high standards when it comes to winemaking. Shiraz is the speciality here and it is a very good Shiraz but a little gem that is worth a try is the 2007 Cabernet Sauvignon. Four stars from the Platter Guide in 2011 is a glowing endorsement in itself. Black berry and cheery flavours help to compliment stews or lamb and the full bodied richness make it soft and delicious. Zevenwacht – Stellenbosch – The Tin Mine Red 2009 – 14.5% The Tin Mine Red from Zevenwacht was very unfortunate not to be our best red from the LIWF. Mainly a Shiraz and Grenache blend with elements of Primitivo and Mouvedre. Matured in French oak barrels it is a dark purple
red in colour with black fruit, mocha and dark chocolate flavourings. The grapes are harvested from four different vineyards, all on the Atlantic Ocean coastline. It offers perfectly balanced acidity and is a pleasure to drink. Cederberg – Clanwilliam – Shiraz 2008 – 15% The Cederberg winery is the highest above sea level in Stunning Fancourtl inks the Cape wine lands. The rocky, high-altitude terrain with Mediterranean climate and diverse soil types offers perfect terroir for creating wines of distinction. Winning a multitude of awards throughout the past year this Shiraz is powerful, rich and intense. Mulberry, roasted coffee, dark chocolate and spice make it the perfect partner for South African game. Winemaker David Nieuwoudt is a fifth generation expert and ensures the grapes are farmed sustainably so you can feel confident that there is a lot more to come when you get to the bottom of the bottle. The Foundry – Stellenbosch – Syrah 2007 – 14% This wine took four and a half stars from the platter guide in 2011 and it is not hard to tell why. Winemaker Chris Williams told us he likes to be inventive and this is evident as no recipes are followed and both modern and traditional methods are used. Grapes come from a vineyard close to the False Bay and produce a wine that is purple/ruby in colour and has a herby, plum taste leaving a fruity, spicy after taste. Silky tannins make it smooth and easy – perfect for an evening wind down! ●
AUG 12 PAGE 19
INDUSTRYSA’S WINE EXPERT
An Englishman, an Australian, a Russian and a South African walk into a bar… Aiden Hughes is the sales manager for the Middle East and East Africa for DGB wines. His knowledge and expertise on wines has been built up over the years after working for a host of different international wine businesses. The Englishman is the perfect person to talk in a little more detail about the wine business in South Africa. Not the start of a joke but a recent work trip to South Africa. I was part of a group of new recruits to the international team for DGB wines. Arriving in this most hospitable of countries, I soon learnt that life here is a 50/50 split of hard work and hard partying. My new team and I both were well up for the challenge! Now I am sure we all know that South Africans have a very worrying problem – they believe that chickens are salad. South African’s love their meat. The bulk of their time is taken up with ‘making fire’ and ‘braai-ing’. To understand the concept of braais, think about starting an extremely large fire and then placing every kind of meat under the sun on top of it. Anything on four legs is far from safe from this wonderful activity. A braai is not a quick process. One of our hosts, Chris, explained that braais are categorised by beer – the beginners start with a six beer braai (one has enough time to consume six beers before it is ready) and this develops, over time, to a fourteen or sixteen beer braai … A braai is not a fancy, Cordon Bleu affair; it relies on the basics – meat, meat, meat and meat. This is a fantastic gastronomic gathering that demands the heartiest of appetites. The time spent gorging reminded me of my time in Provence – breakfast lasts ‘til lunch, lunch creeps towards dinner and the night is still young. As well as their love for a lazy graze, both France and South Africa share a passion for wine. Wine was introduced to South Africa by the founder of Cape Town, Jan Van Riebeck in 1659. It was the French Huguenot settlers, however, that really put the country’s wine on the map. Franschhoek – literally meaning ‘French Corner’ became arguably the wine capital of South Africa. Situated in the Paarl region, it lies only a stone’s throw away from Stellenbosch, which itself has played a significant role in the development of the South African
PAGE 20 AUG 12
wine trade as it houses the famous Stellenbosch University with its excellent viticultural and winemaking programs. Though there were many highlights on this trip, the most interesting was the discovery of a recent trend of ‘café wine’. Pinotage, the offspring of Pinot Noir and Cinsault, has often been criticised for its rather industrial, almost rubber-like attributes and has found it difficult to shine in the markets of the UK, USA and Europe. The high PH within the grape has been identified as the source for these unpalatable characteristics. As a result, the winemakers have been experimenting. At Bellingham Wines, they have added a dash of Petit Verdot (with a considerably lower PH) to counter the high PH. Another experimental approach has involved placing charred oak staves into the tanks; this actually gives the wine a ‘coffeeesque’ characteristic. This coffee characteristic has proved immensely popular in the local market. Other winemakers have cottoned onto this and have started using the same method – in particular with Merlot, which was always a hard grape with which to produce good wine in the Cape. Whether this new ‘coffee’ style will travel well abroad and gain traction in more traditional markets is a point for discussion. I found it fascinating but I do believe that coffee is best consumed once the wine is finished. Whatever the outcome, it is great to see that after such a long period of political unrest, the winemakers of South Africa are embracing new ideas and taking innovation to the next level. All they need to do now is discover salad and add it to the braai menu… Aiden Hughes Sales Manager DGB Ltd Middle East & East Africa www.dgb.co.za ●
OAK VALLEY WINES
The best keeps getting better By Joe Forshaw
The Oak Valley Estate in the Elgin Valley is a fantastic business and known not only for its superb wines. We recently had the pleasure of tasting some of their best bottles and of course, they did not disappoint.
In the first issue of IndustrySA we took an in-depth look at the work going on at the Oak Valley Estate and spoke to owner of the business Anthony Rawbone-Viljoen. The family business is run so well that we thought it would be the perfect time, as we focus on wine, to review some of their best. Seeing as the people at Oak Valley have told us before how proud they are of the wine that they produce and we have recently been surrounded by fantastic South African wine at the LIWF we thought we would be well placed to see how their selection would compare in the market. When we received the six bottles in our office the excitement was plain to see on the faces of everyone. Let’s start with our favourite – the 2007 Merlot Cabernet Blend.
After sharing the smallest amount with friends and family the conversation always came to the same conclusion: How quickly can we get some more of this? This wine is a sign of what has made Oak Valley Wines a multi-award winning division of the business with numerous glowing reports in the Platter Wine Guide. The three different grapes used in the blend are harvested from three different sites; a north-facing slope, a south facing mountain vineyard and the valley floor. In the mountains the yields are very low, the merlot yields just above four tonnes per hectare. The Cabernet Franc and Cabernet Sauvignon yield just over six tonnes per hectare and this undoubtedly contributes to the unique smoothness. Winemaker Pieter Visser has certainly found a gem here!
OAK VALLEY MERLOT CABERNET BLEND 2007 – 14%
OAK VALLEY CHARDONNAY 2011 – 13.5%
This wine is not only one of the best South African reds we have tasted but one of the best reds we have tasted ever. The breakdown of Merlot (56%), Cabernet Franc (27%) and Cabernet Sauvignon (17%) makes for a full bodied experience with hints of spice and cigar and the fruitiness of mulberries and dark cherries. Soft tannins and a natural acidity, it is a perfect mouthful. There is nothing difficult about drinking it, smooth and unashamedly moreish.
Historically when thinking of a quality white grape peoples imagination may not be drawn straight to Chardonnay. Some cheap and nasty creations have surrounded Chardonnay with a reputation that it does not deserve. Find the right bottle, made in the right way and you will have a favourite that will be with you for a long time. This 2011 from Oak Valley is one of those favourites. Without exception it brought a smile to the faces of everyone who
PAGE 22 AUG 12
OAK VALLEY WINES
we have allowed the smallest of samples. Apple, orange peel, vanilla and honey are officially the flavours that should come across and we found particularly the last two being fantastic parts of the equation. It is full bodied, fresh and clean. Matured in French oak, the nose provides distinctive fruit aromas and you know you’re onto a winner before you even taste this wine. We would say great with seafood and a bottle would be perfect for a group gathering anytime of the year.
OAK VALLEY SAUVIGNON BLANC 2011 – 13.5% Gooseberry, peach and ruby grapefruit flavours and a long and zesty finish. A scientific approach to harvest and storage ensure the perfect conditions for prime taste. Perfect for everyday drinking, very smooth and a real easy drink.
OAK VALLEY SAUVIGNON BLANC / SEMILLON 2008 – 13% This blend is a very different white. It moves away from a traditional taste of citrus and
gooseberry towards a more vegetal taste. It has distinctly herbaceous aromas and is perhaps more of a wine lovers treat than an everyday drink for the masses. Stunning Fancourtl inks
OAK VALLEY PINOT NOIR 2010 – 13% A lot of companies try and fail to make a Pinot Noir that has enough of a taste to bring consumers back. We doubt Oak Valley will have this problem with this delightful wine. Fruity strawberry and raspberry tastes start off the mouth and nose and excite the taste buds. After aging smoky bacon and wild berries come through and the juicy mouthful brings about a guilty pleasure that is hard to replicate with other wines. ● Oak Valley terroir is characterised by an inland plateau completely surrounded by mountains. In summer, the ‘black south-easterly’ maritime winds create a cooling effect thereby lowering daytime temperatures. In winter, snow occasionally covers the highest mountain peaks. This cool climate ensures long, slow ripening of the grapes under ideal growing conditions with the sugar, pH, acid and flavour compounds in balance resulting in wines of character, defined by excellent purity and density of fruit, complexity and elegance.
AUG 12 PAGE 23
COMPANY REPORT
Upping the diamond stakes By Joe Forshaw
Dr Pranill Ramchander, Anglo American head of corporate communications and branding SA, talks to IndustrySA about community involvement, innovative mining, the economy and everything else going on at the world’s largest diversified mining organisation. If you haven’t heard of Anglo American you must have been stuck down a hole for a long time. They are one of the largest mining organisations in the world, they have a presence on every continent, they have over 100,000 employees, in 2011 they earned $US11.1 billion, they are listed on both the London and Johannesburg stock exchange and their head of corporate communications and branding in South Africa spoke to IndustrySA to give an insight on where this success came from and how they plan to keep it going. “Anglo American is one of the world’s largest diversified mining and natural resources groups. Our portfolio of high-quality mining assets and natural resources spans bulk commodities – iron ore and manganese, metallurgical coal and thermal coal; base metals – copper and nickel; and precious metals and minerals – in which we are a global leader in both platinum and diamonds. We operate in Africa, Europe, South America, North America, Australia and Asia.” Although Anglo American is headquartered in London, England it is very much a South African company and proud of it. “Our roots are firmly and
PAGE 24 AUG 12
proudly embedded in South Africa, as the company was started by Sir Ernest Oppenheimer in 1917 in Johannesburg,” says Dr Ramchander. Since then the business has obviously changed a lot, as has the industry and the world but the aim remains the same: “To be the leading global mining company.” To become the leading global mining company Anglo American has placed a large emphasis on community and societal involvement. Making an impact that can last and remain sustainable while all the time adhering to the businesses core values as Dr Ramchander explains: “Our ambition to be the leading global mining company is defined by our commitment to go beyond the confines of our core operations and make a real difference in the communities surrounding our operations, and in general society. “Importantly, we ultimately intend to ensure that when our mines eventually close, our host communities are equipped with the capacity and the knowhow to build a viable and sustainable future.Our focus on community involvement, our partnerships with governments, our stewardship tools, and the standards to which we adhere and aspire to, have helped us to achieve this goal. These
ANGLO AMERICAN PLC
COMPANY REPORT
“ Anglo American is producing various raw materials that are the very ingredients of industrialisation and urbanisation”
PAGE 26 AUG 12
ANGLO AMERICAN PLC
activities are constantly guided by our core values of safety, care and respect, integrity, accountability, collaboration, innovation, and partnership.”
TOUGH INDUSTRY The mining industry is one of the most important for the South African economy, contributing nearly 20% of GDP. The discovery of a diamond on the banks of the Orange River in 1867 by Erasmus Jacobs is widely regarded to be what started large scale mining in South Africa. A few years later there were gold rushes and mines cropping up everywhere with huge incomes and profits starting to flow. Today the country is still one of the largest precious metal and coal producers in the world but activity is becoming more difficult to manage as deposits are smaller and increasingly difficult to find. With the international economy in a difficult place and pressures now being felt in South Africa after feeding through from the USA and Europe Anglo American has had to focus itself as a business. Questionable performances in the stock market have led to unrest among shareholders but Dr Ramchander remains confident saying: “More than five years ago, following CEO Cynthia Carroll’s appointment in 2007, Anglo American started a journey to turn around performance across the group. As a result, we now have a performance driven culture, and strive for continued improvements across all areas of the business. Our asset optimisation programme is embedded throughout the organisation, and delivered $1bn in operating profit growth between 2009 and 2011.” If the company can continue to deliver figures like this, in this time of supposed difficulty, the shareholders will be settled. “A key differentiator is the diversity and quality of our portfolio of commodities and the breadth of our project pipeline, which cut across each part of the commodity cycle,” says Dr Ramchander
INNOVATIVE MINING As we reported on page 12 Anglo American’s Platinum business recently unveiled its new platinum fuel cell locomotive, an innovation set to help not only the mining industry but the economy as a whole as Dr Ramchander explains: “An excellent example of how we are driving innovation in the business is our platinum business’s fuel cell technology initiative. In May 2012, we launched a platinum based fuel cell powered mine locomotive project. In 2011, the company identified uses for fuel cells in our own operations and mining
locomotives were identified as an ideal opportunity. We believe that fuel cells offer one of the most exciting opportunities for South Africa in the green economy and we believe that a thriving South African fuel cell industry would not only help the country to meet its energy challenges, but also create widespread employment.” Anglo American is always looking forward and recently commissioned three new mining projects, one of which is in South Africa. “Our iron ore project in the Northern Cape, Kolomela, was completed five months ahead of schedule, within budget and with an excellent safety record,” says Dr Ramchander. He goes on to talk about the future, saying the outlook is bright. “Looking to the future, the short term economic picture is still uncertain; however we are confident that in the longer term, the demand for the commodities we produce will keep on growing as industrialisation and urbanisation trends continue. Anglo American is producing various raw materials that are the very ingredients of industrialisation and urbanisation, which will continue in emerging economies for many years to come.” By 2025 we will need office and residential space equivalent to the size of Austria to house the one billion new consumers in emerging country cities. Further, by 2030 we will need double the amount of cars and it is these areas that will require the raw materials that Dr Ramchander speaks of. The country has seen an astronomical rise in the amount of ‘green’ projects that go on within businesses and while even President Zuma is behind the eco movement the mining industry is at the forefront of innovative, eco-friendly working practice because it is such a big part of the economy. Obviously the challenges faced by mining companies include developing resources but also, doing so in a sustainable manner. “From Anglo American’s perspective, we are constantly looking at ways to drive innovation and change in the way in which we mine, and are continually talking to all levels of government to build lasting relationships, in order to strengthen our developmental impact as a major investor,” Dr Ramchander says.
PROUD ACHIEVEMENTS Anglo American was highly commended in 2011 at The Community Business of the year awards and more recently they received recognition for excellence at the Radley Yeldar annual corporate reporting seminar. The awards highlight the best examples of clear communication from the world’s leading companies,
AUG 12 PAGE 27
SIZWE MDIKANE New Vaal Colliery
ANGLO AMERICAN PLC
commending those which meet audience expectations, regulatory developments and peer behaviour. Something else that Dr Ramchander is very proud of is the recognition Anglo American received from a UK based company regarding responsible behaviour. “Anglo American is the only mining company to achieve platinum status in the Business in the Community Corporate Responsibility Index for 2012. The index is the UK’s leading voluntary benchmark for corporate responsibility and platinum status is awarded to companies that embed responsible behaviour across their business.” When asked what is the key to Anglo American’s success Dr Ramchander tells us that it is the commitment to the organisations vision and the performance driven culture that makes them the best. “We have a clear and precise vision to be the investment, the partner and the employer of choice – a vision which is firmly embedded in our culture and drives everything we do. We are also able to fulfil our priority of continuously maximising shareholder value through the cycle and over the long term, owing to our focused market strategy and performance driven culture.” Something else that the Anglo American group was celebrating recently was the acquisition of a further 40% shareholding in the De Beers business, taking its total interest to 85%. Anglo American purchased the shareholding from the Oppenheimer family for a reported $US5.2 billion. The government of Botswana still holds the remaining 15% with the group’s biggest diamond mines located there. As diamonds are at the core of the Anglo American business the move makes sense and they will look to increase De Beers production levels, which have fallen in recent years.
ASSISTING ENTREPRENEURS IndustrySA speaks to some of the most influential business people on a daily basis, people with great knowledge of industries and effective business practice. It is important for these people to pass on their knowledge and skills to the next generation of business people and Dr Ramchander has given us some advice to pass on. “It is crucial to obtain the support of organisations that provide financial assistance and business advice to entrepreneurs.” Conveniently enough Anglo American has a service which provides exactly that sort of assistance – Zimele. Dr Ramchander explains: “Throughout its history, Anglo American Zimele has created numerous sustainable, commercially viable enterprises and empowered
Dr Ramchandler
entrepreneurs to operate in the mainstream economy. In fact, from 2008 to the end of June 2012, its four funds have provided R655 million in funding, supported 1257 companies and completed 1751 loan transactions. Further, funded businesses have employed 23,002 people and achieve a collective annual turnover of R2.4 billion.” The Anglo American business is a strong one. The approach taken that focuses on community involvement, the sustainable development of new mines, the broad portfolio and the sheer size of the group as a whole give the name, Anglo American, a real presence. In the mining industry of South Africa there is probably no one bigger, and definitely no one more innovative. While current demand for jewellery is lacklustre, impacting on the diamond business, the business is helped by its coal, iron ore and manganese divisions which will always receive high levels of demand. Safety is high on the agenda and that is perhaps a contributing factor towards Anglo American always getting the best people. Dr Ramchander is aware of this stating: “We have an ambition to always operate safely, sustainably and responsibly, and only employing the best people.” When the economy reaches the same levels as we saw in 2007 Anglo American will be the mining company that is ideally positioned to meet the demand that ensues while always contributing to local economies and creating employment opportunities, not only in South Africa but all over the world. See page 12 for more information on the Anglo American Platinum fuel cell powered locomotive. ●
AUG 12 PAGE 29
COMPANY REPORT
T he deep blue ocean is getting greener… By Roland Douglas
When I first found out that I would be writing an article on a world leader in international shipping, a company with ties in the energy, logistics, retail and manufacturing businesses, I did not immediately think of the name Maersk. In fact, even after hearing colleagues discuss the giant organisation it still did not click as to the size of the portfolio that the originally Danish company manages. After the name ‘Maersk’ had been in my head for a few days it finally hit me. I had seen that name before, many times. The brand is all over the side of shipping containers in every port and harbour in the world. This is one of the true giants when it comes to international logistics. Maersk Line is the core liner shipping business of the A.P. Moller-Maersk Group and Maersk Line operates within 125 countries across the world with
PAGE 30 AUG 12
nine of those countries forming the Southern Africa Cluster (South Africa, Mozambique, Namibia, Lesotho, Swaziland, Botswana, Zimbabwe, Zambia and Malawi). In South Africa Maersk Line’s services are handled by Maersk South Africa (Pty) Ltd. The head office is in Cape Town and was established in 1992. There are also divisions in Port Elizabeth, Durban, East London and Johannesburg. Shipping is a massive part of the South African economy and while the country is a world-class producer of goods for export it is also a major importer of diverse products from all over the world. This is where a company like Maersk Line is unbeatable. State-owned company Transnet Group is currently undertaking a R300 billion investment in port and rail infrastructure and this will undoubtedly be of great benefit to the industry.
MAERSK LINE SA
David Williams, managing director of Maersk South Africa (Pty), recently gave IndustrySA an insight into how the shipping business is becoming more energy efficient whilst remaining a global leader with some of the best employees out there.
Upgrades are planned for ports across the country including Durban, Richards Bay, Ngqura and Saldanha. At Durban Container Terminal’s (DCT) Pier one there would be an increase in capacity from 700,000 to 820,000 and even further to 1.2 million twenty-foot equivalent units (TEUs) in 2016/17. These investments show that the government is committed to its infrastructure upgrade and Maersk Line will benefit as the Durban Container Terminal is the largest in Africa and handles approximately 1474978 million container moves per annum.
GETTING GREENER Another government movement that has been of benefit to Maersk South Africa is the large focus that is being placed on
energy efficiency and ‘green’ production processes. Of course, everyone wants to operate in a way that is kind to the environment but it can often be expensive and complicated. Maersk South Africa is working, like the organisation on a global scale, with a real push towards eco-friendly practises and this comes from in-depth research and development programs which delve into every aspect of the business.
“ The marine environment is fragile and we are determined to be good citizens of the world’s oceans” AUG 12 PAGE 31
COMPANY REPORT
The South African government has stated on many occasions its desire to make better use of the country’s abundant, low cost coal reserves in the short term while also exploring alternative, low emission, energy sources in the long run. IndustrySA reported recently on the large new wind farm and solar park both of which are exactly the sort of thing that president Zuma is looking for from private enterprise and Maersk South Africa and Maersk Line at an international level has a lot of its own ideas when it comes to energy efficiency projects. The green push has had a huge effect on business not just in South Africa but all over the world and getting ahead with sustainable options now is a wise move as the market for cleaner energy becomes more and more competitive. There are on-going discussions in the country about pursuing more closely nuclear power programmes but for now arrangements are at an early stage. In late 2009 tariffs were introduced by the National Energy Regulator of South Africa, some of the most attractive in the world, which encourage investment in renewable energy plants. “Maersk Line continuously works to reduce fuel consumption and emission of greenhouse gases from our vessels through a portfolio of projects,” says David Williams, Maersk South Africa managing director. “This project list includes everything from improved engine design, optimisation of ventilation systems and efficient hull and propeller maintenance to research projects involving the application of fuel cells and alternative energy sources,” he adds. Some examples of the projects already underway are: Installation of waste heat recovery systems, enabling waste heat to be used for propulsion, thereby reducing fuel consumption by up to 10% Waste oil clarification decanters that separate burnable liquids from waste oil, water and sludge mixtures New cylinder lubrication systems that use less lubricating. “In 2009, we embarked on a journey globally to reduce our carbon footprint. Maersk Line has set a target to pursue a goal of 25% relative CO² reductions by 2020 over a 2007 baseline. In 2011 a 15.6% CO² reduction per container from owned and chartered ships was achieved,” says Mr Williams. Maersk Line offers customers in the Southern African market the best possible products and equipment and one initiative currently installed on Maersk Line’s reefers is Quest II (Quality and Energy efficiency in Storage and Transportation). This new software was developed to control the on-board refrigeration system and help maintain cargo quality and at the same time reduce CO²
PAGE 32 AUG 12
emissions. A QUEST enabled reefer with chilled cargo will on average have a reduced CO² emission of 30kg per day. “It is a simple act with a high impact,” says Mr Williams. There are many challenges and hurdles out there facing any international business and those arising from environmental concerns are increasingly coming to the forefront of people’s minds. Although Maersk Line introduce many new environmental initiatives on a regular basis they have been involved with the World Ocean Council and other scientific organisations for several years. “Burning fuels necessary to operate vessels leads to the emission of exhaust gases into the atmosphere. Carbon dioxide (CO²), sulphur oxides (SOx) and nitrogen oxides (NOx) are the predominant emissions. Compared with other modes of transport, sea transport is by far the most energy efficient and environmentally friendly,” says Mr Williams. He adds: “Changing ocean conditions and climate present real risks and challenges for Maersk Line. Accurately modelling and predicting these changes is difficult. The effects of climate change on the world’s oceans have led to even greater volatility. The oceans are core to our activities in shipping and energy. At the same time, the marine environment is fragile and we are
“ A major external challenge that has affected us as a venue, as well as our clients, is the massive increases we have seen in electricity costs” determined to be good citizens of the world’s oceans.” Maersk Line’s scientific partners have been able to use their vessels to collect ocean data for years now and this is something which has attracted a lot of attention over the last year on the South Africa – Europe service (SAECS). The Lars Maersk has been steaming the route for the last 12 months and collecting vast amounts of information about the water. The project is being done in partnership with the European Ocean Science Programme, Carbochange. The focus of the project is on greenhouse gas emissions in the ocean and Maersk
MAERSK LINE SA
South Africa and the company as a whole take their involvement very seriously. “Being able to collect data over several years is instrumental to understanding trends in oceanic change. To this end, Maersk Line is continuing collaboration on data collection with the University of Las Palmas in coming years. Maersk Line hopes to get more scientific data collection equipment on-board our assets in 2012,” says Mr Williams. The system installed in the engine room of the Lars Maersk is the most accepted equipment for the continuous underway CO² partial pressure (pCO²) determination by the international scientific community. Clean seawater (before being used for any ship requirements) is pumped to the system and split in two lines, one is sent to an equilibrator system where the partial pressure of CO² is measured every five seconds and the other is sent to a to a set of sensors for continuous recording of temperature, salinity, dissolved oxygen concentration and fluorescence (related to chlorophyll content). A second temperature sensor is located just in the seawater intake to record the temperature that it is used to
correct any heating of the seawater from the intake to where the equipment is located. Four cylinders with a very accurate content of CO² traceable to the World Meteorological Organizations (better than 0.01 ppm of CO²) are run every four hours in order to calibrate the system and provide values of high accuracy. The equipment was installed and is maintained by The University of Las Palmas.
PEOPLE KEEP MAERSK FLOATING Maersk Line’s main routes out of Southern Africa are those to the Far East, Middle East, Northern Europe and Mediterranean. There are also popular routes reaching North America, Latin America and other African countries. Why has Maersk Line remained the best? What helps them continue to grow and outperform competitors? Mr Williams tells us it is all about the people, internally and externally. “Maersk Line has maintained its position through listening to our customers, retaining dedicated employees and innovation through research and development on our products offered. “The focus of our operations should be on our
AUG 12 PAGE 33
COMPANY REPORT
customers, we run a monthly customer satisfaction survey to ensure we maintain standards and gain feedback on areas we can further improve.” There is a real attention to detail, which stems back to the original values of the company. When A.P. Møller set up the business in Denmark the visions of constant care, innovation and uprightness were at the forefront of his mind and they are still present, more than ever, in the organisation today. In the Southern Africa market the A.P. Møller-Maersk Group has the largest reefer fleet in terms of equipment and vessel capacity, at the terminals and on-board there is a fleet of staff that monitor containers 24 hours a day offering confidence to customers. Business is made easy with every customer being appointed a dedicated customer service agent and schedule reliability is taken very seriously. Maersk Line ensures vessels arrive and depart on time, allowing for customers to plan further down the supply chain. Securing fixed berthing windows on some of their services has helped this and meant for unnecessary additional bottom line costs being eradicated. IndustrySA has interviewed some of the largest organisations out there and we always hear the same thing – people are the key. You need to the right people in order to make a success of your business. At Maersk South Africa there is a focus on ensuring employees are engaged
and helping them to effectively offer their experience to customers looking to move cargo across the world. However, it is not only employees and customers that make up the ‘people’ element of Maersk South Africa. They also partner with various organisations to assist in community development. One project receiving the full support of Maersk South Africa is the Afrika Tikkun early childhood development centre in Mfuleni which provides schooling to 250 children. Maersk Line employees participate in volunteer days at the centre and also give up more of their time on other occasions such as Mandela Day. “A key focus area within our Corporate Social Responsibility portfolio is to increase our economic development projects so as to encourage and assist entrepreneurs to grow their businesses and promote economic equality,” says Mr Williams.
A POSITIVE OUTLOOK The current economic pressure that has been felt because of the Eurozone crisis and the general global economic slowdown is not something that Maersk Line has been able to escape. “There is a constant pressure on profitability,” says Mr Williams. The difficulties in finances, all over the world, meant that volumes of cargo
DAVID WILLIAMS – MANAGING DIRECTOR: David Williams is the current Managing Director of Maersk South Africa (Pty) Ltd and Head of the Southern Africa cluster. The former country manager for the A.P. Møller-Maersk Group in Namibia and previous Sales and General Manager appointed in this capacity. David holds a Bachelor of Commerce degree from UNISA and has been with the A.P. Møller-Maersk Group since 1991. He worked in Safmarine sales and the European Trade department in Johannesburg and Cape Town respectively for six years. In 1997 he moved to Hamburg, Germany as the Commercial Manager for the Safmarine and Deutsche Afrika Linien (DAL) joint venture for container services between Europe and Southern Africa. After three years in Germany and the acquisition of Safmarine by the A.P. Møller-Maersk Group in 1999, David returned to South Africa in August 2000 as National Export Manager for Maersk Line, based in Cape Town. In 2002 he was promoted to Sales and Marketing Manager before moving to Walvis Bay to head up Maersk Namibia in August 2004.
PAGE 34 AUG 12
MAERSK LINE SA
being moved slowed down and the decreased rate levels had a negative impact on profitability. This has resulted in some specific ports no longer being serviced and freight rates needing to be increased to ensure profitability but with economic slowdowns typically cyclical Maersk Line is well placed to increase capacity when orders return to their peak levels. With over 600 vessels and an endless list of destinations to add to the impressive carbon reducing practices Maersk Line’s is truly an industry leader heading in the right direction. The ever increasing focus of environmentally friendly practice and sustainability make for a perfect platform for Maersk Line to push into the future. Maersk South Africa will be at the front of that push as the country’s economy remains relatively healthy and the investments in port infrastructure will make it easier and faster for Maersk Line to operate. Mr Williams sums up well when he describes what sustainability means to the Southern African cluster. It is this focus that helps Maersk Line develop from within and constantly push to achieve more, “Sustainability is part of our business whether in environmental performance of our vessels and equipment or in the interactions we have within the communities we operate. Maersk Line defines sustainability as a business approach that strives for the best possible outcome for our business, the people whose lives we touch, and the natural environment on which we depend, now and in the future.” ●
A BRIEF HISTORY OF THE A.P. MØLLER-MAERSK GROUP Maersk South Africa (Pty) is part of a worldwide conglomerate, the A.P. Møller – Maersk Group. The international group operates in 130 countries around the world and has nearly 110,000 employees. They are spread over such a wide range of business activities it becomes difficult to list them all. The group was founded in 1904 by Arnold Peter (A.P.) Møller and following his death in 1965 his son Maersk Mc-Kinney Moller took over the business. Maersk himself is responsible for growing the group into the giant organisation that it is today through initiative, foresight and enterprise. When A.P. Moller started the business it was all about shipping, building and maintaining steam ships and eventually ocean liners, in a yard in Copenhagen. Throughout the first and second world war the business struggled but Moller managed to get things running smoothly again as early as March 1946. During the Second World War Maersk McKinney Møller had been based in the USA and he returned to Denmark in 1947 to take over many of the daily responsibilities from his father. Since then the company has exploded in terms of business activity, having large divisions across the world in the oil business, in the retail sector, in manufacturing (especially shipping containers) and large charitable organisations. Shipping is still at the heart of the business. Maersk Mc-Kinney Møller retired as Chairman of the board in 2003 and died in April this year at the age of 98 as Denmark’s richest man. The company at international level still remains in Danish hands and the divisions around the world, such as Maersk South Africa, are run with the original values very much intact.
AUG 12 PAGE 35
COMPANY REPORT
Consider your risks managed By Joe Forshaw
Have you considered the risks surrounding your business? Do you have a plan in place to manage those risks? Lateral Unison tells IndustrySA that it is vital to understand the risks involved with business and put plans in place to mitigate against those risks.
One thing that we notice while constantly working with the best businesses around is that people are the most important asset that any company has. It is not a coincidence that the organisations that outperform the rest have a strong commitment to people, internally and externally. Lateral Unison is one of the top performers in the
PAGE 36 AUG 12
risk insurance industry and they hold a strong belief in their people. They source the best possible advisors to assist clients with every aspect of the solutions they provide. The Lateral Unison website displays a banner reading “The Client is King�, indicating a commitment to customers as well as staff. Another true fact that the company promote is that no matter what sort of product is selected (business, personal or government), a human
LATERAL UNISON
is always being impacted. As people are such an important part of the insurance industry it is wise to have them at the top of the priority list. Lateral Unison does this and that is why they are an industry leader. They have been in business for 12 years now and since their inception the goal has been the same: To become not only South Africa’s top insurance company, but a world leader providing innovative insurance risk solutions to companies on a global scale. The business comes from humble beginnings, being set up in a garage by CEO Craig Dobrowsky and his brother and Director, Daniel. The business is owned by Craig and partner and executive director Nako Stanley Letsela. The board of directors is populated by people with a vast business knowledge and industry expertise especially from Craig and Nako. Craig brings his in depth knowledge and experience of the insurance broking industry, entrepreneurial flair and leadership to the Board, as well as his knowledge of establishing and growing the business, which has resulted in
“ We will look at a client’s entire risk and see where we can influence or manage the risks in such a way as to drive the premium down” its rapid growth and prominent position as a preferred provider of insurance broking services to clients in the government, municipal, corporate and individual sectors. Nako brings many years of legal experience and entrepreneurship to his role as a partner in Lateral Unison. He is passionate about uplifting his people and making a difference in people’s lives, and initiated a number of the social responsibility programmes at Lateral Unison. The business has a range of end-to-end services that support the core business of insurance and risk management. Danjoe Horn is the head of insurance for lateral and he also tells IndustrySA about the success of the Lateral Unison business. “The business started in 2000 focusing on commercial and personal line insurance – motor and household and insurance for business. From there it ventured into municipal insurance. Over the last four or five years the focus has shifted to municipal business rather than commercial.” The risk department tells us: “Without proper risk management processes in place, the insurability of an organisation can be affected.” You may think that insurance is all the same as in many cases most people will thankfully not have to ever claim on insurance but for a municipality insurance is a very different story, the level of risk is much higher as Mr Horn explains:
AUG 12 PAGE 37
COMPANY REPORT
“The risk related to a municipality is so much higher and it is important to understand the needs of the client. The challenge is to be cost effective as the aim of government is to drive costs down but it is a high risk entity or institution to insure so you have to be very mindful in your proposal.”
NICHE MARKET? While there are a number of organisations that provide commercial insurance in a somewhat saturated market, insurance and risk management of a municipality has a fewer number of players and Mr Horn knows that this gives Lateral Unison an advantage. “In South Africa there are really only a few insurers of municipalities. Lateral Unison as a broker is part of the top three brokerages in South Africa chasing that business.” The risk department adds: “We have automated our risk management service through a new, innovative software. This has greatly enhanced the quality of our
PAGE 38 AUG 12
work and contributed to operational efficiency, putting us above the rest in our field.” There is always room for improvement and Mr Horn tells us that the competition own nearly 60% of the business but Lateral Unison is in a strong position to increase their market share. “We are able to grow at a much quicker rate as some businesses out there lack the innovativeness of being able to understand client needs and helping them mitigate against risks.” The municipal business is responsible for around 90% of the company’s income so it is understandable that this area has taken the focus and began to grow at a significant rate.
THE CREDIT CRUNCH The credit crunch and the weak global economic climate has effected some businesses and industries more than others. We have received a mixed response to questions on the economy. Mr Horn suggests that
LATERAL UNISON
“ The business started in 2000 focusing on commercial and personal line insurance – motor and household and insurance for business. From there it ventured into municipal insurance” economic pressures have not been all bad for the industry in which he operates. “We have found the opposite to most organisations. Insurance companies are still paying claims. Because of general inflation and asset value increasing insurance premiums have gone up, not as a result of the credit crunch but because of generic and systematic growth within the insurance industry. No insurance company has gone bust because of the credit crunch.” As the company moves forward it will continue to
be innovative to keep its place as an industry leader. “We have to be innovative in both commercial and municipality risk management. There are so many factors that have to be taken into account to minimise risk, whether it is risk assessment or risk control projects, we will look at a client’s entire risk and see where we can influence or manage the risks in such a way as to drive the premium down. “This also helps share the responsibility of risk between the client and the insurance company.
AUG 12 PAGE 39
COMPANY REPORT
“ Because of general inflation and asset value increasing insurance premiums have gone up” Generally the insurance companies would like to see this, they don’t want to take 100% of the brunt, they want to see the client participate in minimising their risk.” The future is clearly bright for Lateral Unison. With the entrepreneurial spirit of the board filtering through the business and innovative ideas seemingly coming off a conveyor belt Mr Horn says that a long term goal remains at the forefront of the company’s growth plan. “The short term plan is to become a mandated broker then obviously every insurance brokerage goal is to become an insurer. Without that goal the excitement of future prospects is taken away.” After many years in the industry Mr Horn is well suited to give advice and he says that one of the most important things when it comes to risk management is understand your industry. “Our whole business is about understanding risk. Whether it’s insurance risk, health and safety, compliance or any type of risk. You have to understand the risks associated with your business. Then you have to devise a plan and the risks you cannot manage you have to mitigate against. You must understand your industry.” By being involved in the insurance of municipalities Lateral Unison is probably having an in-direct effect on you without you even knowing. However, this should bring nothing but comfort as they are well versed in all aspects of risk management and insurance. The commercial insurance division of the business, despite being smaller than the municipality insurance division, is still equally as committed to understanding the needs of a client so you can be sure that anything risky is under control. Lateral Unison’s success is derived from people, specifically its commitment to its people,both clients and employees. The risk department sums up nicely stating: “Lateral Unison’s success is attributable to our success-driven risk management service approach to deliver an invaluable service to our clients that is only achievable through the following: The calibre of people on our team, the risk management systems used and the risk management processes adopted. ●
PAGE 40 AUG 12
Risk Services (PTY) LTD
The risk department of Lateral Unison gave us an insight into what risk management actually is. “Risk management takes a proactive approach to minimising or preventing the occurrence of events that could result in a loss to an organisation while insurance is an agreement, where for a stipulated premium, one party agrees to pay another a defined amount in the event of a specific loss. It is our understanding that organisations seek security in terms of unwanted events that would have an impact on their operational efficiency. Our risk management department provides a proactive service to our clients in terms of mitigating and preparing for unwanted insurable risks, whilst our claims department addresses the reactive risk management element, being insurance. “Risk management is not a new phenomenon. Together with the Public Finance Management Act and Municipal Finance Management Act, Treasury Regulations suggest that risk management is the very essence of an organisation’s ability to meet its objectives and sustain its existence. Generally, the global economic crisis had forced many companies to evaluate their risk management processes. The challenge of insufficient and inappropriate resources to implement effective risk management processes within an organisation creates a huge opportunity for Lateral Unison to promote its value-add risk management services.”.
LATERAL UNISON
AUG 12 PAGE 41
COMPANY REPORT
A responsible, caring member of the community By Roland Douglas
We have heard in the past the importance of social commitment, especially from large organisations and at Fruitone, South Africa’s premier citrus fruit production company, there is a strong social commitment ethic which is developing people as well as profits.
When someone asks you to name a multi-million Rand business or brand there are many that come to mind, this is not a difficult task. When they narrow it down and ask you to name a multi-million Rand company in the food industry perhaps it gets a little more difficult but still most people will have a few on the tip of the tongue. If they get very specific and ask you for a multimillion Rand business in the citrus fruit business in South Africa perhaps you will not have an answer. But if you do it will undoubtedly be Fruitone. After further thought you will probably recognise the logo and realise that fruit produced by Fruitone or products containing Fruitone materials are probably things that you have bought and eaten on more occasions than you can remember. Fruitone is a market leader in citrus fruit cultivation and export. Eureka lemons, star ruby grapefruit and Valencia and navel oranges make up the product
PAGE 42 AUG 12
portfolio of this Tzaneen company, an area which is perhaps more widely known for its fantastic fishing potential than its home-grown international citrus fruit business. The headquarters in Tzaneen oversee production on 1500 hectares of land across five production units in the Limpopo province. The marketing centre is in Stellenbosch and the business has a long list of impressive statistics that prove Fruitone is a dominant force in the food industry. Louis Mentis is the General Manager and has been with the company since 2003. IndustrySA asked Mr Mentis about the current state of play at Fruitone.
WORLDWIDE OPERATION “We export in excess of three million boxes per annum; we export to all major markets including North America mainly Canada, the UK and Europe, Russia, the Middle East, South East Asia, Japan and China so we really do
FRUITONE
have a global footprint. “We employ in excess of 1500 people across the business with the majority in the Limpopo province. Our marketing arm in Stellenbosch is a fairly recent move and of course, we have our office in Tzaneen which is central to all of production units,” says Mr Mentis. The company started with a rather different approach. Traditionally a fruit cultivation business would start up with a farm and a network of distribution channels, at IndustrySA we have featured organisations that have started in this way, but Fruitone’s birth was different as Mr Mentis explains: “We formed the company in 2001; it was founded by John Boyes and we started trading in around 2003. In 2001 we developed an online trading portal, that is Fruitone itself which is the marketing arm of a broader group which has a number of farms in South Africa and some of these farms have been running since the early 1970’s from a production point of view. “There are many separate entities involved with the
business and it can become confusing so everyone just refers to us as Fruitone.”
SOCIAL COMMITMENT Corporate social responsibility and commitment to community upliftment are things which all strong businesses across the country have in common. The businesses that get that part right are usually the ones that go on to have long, successful stints in their chosen industry. Fruitone is no stranger to social commitment. The business prides itself on being a ‘responsible, caring member of local communities’. One way that Fruitone has had a positive impact on the community was to become an established Fairtrade producer with European Union accreditation. The European Fairtrade association was established formally in 1990 and is made up of Fairtrade importers from nine countries (Austria, Belgium, France, Germany, Italy, The Netherlands, Spain, Switzerland and the United
AUG 12 PAGE 43
COMPANY REPORT
We employ in excess of 1500 people across the business with the majority in the Limpopo province
Kingdom). Fairtrade guidelines ensure a better deal for farmers, land owners and employees of member organisations. Harriet Lamb, executive director of the Fairtrade Foundation in the UK remarks: “In South Africa, there is a compelling need to empower disadvantaged workers. The extra resources that Fairtrade delivers, and the underpinning of Fairtrade standards with the national programme to encourage black economic empowerment, can contribute to that process.” It is not only Fairtrade guidelines that Fruitone adhere to; they have a list of their own initiatives that are in place to provide benefits to the local communities. Fruitone leads the way with more than 1000 families at both Zebediela and Moletane benefiting from skills development, management programmes, computer education, schooling as well as HIV/Aids training through international programmes such as You Process and the Oak Tree Foundation. “Three of our five farms are community based projects,” says Mr Mentis. He adds, “Across all of our entities I can say there is 49% community ownership. The community owns the land then we rent the land and the operating company is a joint venture. “We partner with communities as part of the South African land restitution programme,” says Mr Mentis. The South African land restitution programme is intended to ‘restore land and provide other restitutionary remedies to people dispossessed by racially discriminatory legislation and practice, in such a way as to provide support to the vital process of reconciliation, reconstruction and development’.
PAGE 44 AUG 12
“These arrangements with communities are longterm,” says Mr Mentis, signalling that Fruitone’s commitment to social projects is not just a flash in the pan.
BEARING NEW FRUITS Fruitone’s production has increased dramatically over the last few years and this has helped move the business forward and expand into the production of new, different kinds of fruit. “Lemon, grapefruit and orange are our core product but we have recently started planting soft citrus. This is a new venture for us, something a little bit different and soft citrus cultivation will be the focus going forward,” says Mr Mentis. The soft citrus group includes satsumas, clementines, minneola, nova and tambor, offering a larger portfolio for Fruitone who are looking to expand as Mr Mentis explains: “All around we are doing new plantings and looking to expand, hopefully to around five or six million export cartons over the next five years.” The business of Fruitone is important to the South African economy as they are a top exporter, bringing a lot of money into circulation. They are also important because they produce a vast amount of produce for the local market. “We supply the domestic market with over two and half million units and consider ourselves one of the top citrus producing organisations in the country.” With such a healthy level of output you may consider things to be very comfortable at Fruitone but the global economic slowdown has had its effect, as it has across all industries. “If you take something like general consumption, that is down in a lot of countries. Sales
PROPERTIES of TYPE II Zinc Dust Elements
Superfine
Micron 4
Micron 5
Micron 7
Mining
% Total Zinc min
98.5
98.5
98.5
98.5
98.5
% Metallic Zinc min
95.0
95.0
95.0
95.0
95.0
% Pb (Lead) max
0.01
0.01
0.01
0.01
0.20
% Cd (cadium) max
0.01
0.01
0.01
0.01
0.01
% Fe (Iron) max
0.01
0.01
0.01
0.01
0.10
Av. Particle Size in Îźm
2.5 - 4.0
4.0 - 5.5
4.5 - 6.0
6.0 - 9.0
4.0 - 6.0
Cyclone Dust 2.indd 1
9/6/2011 3:57:00 PM
COMPANY REPORT
“ All around we are doing new plantings and looking to expand, hopefully to around five or six million export cartons over the next five years.”
have waned slightly and haven’t been great over the last couple of years. It’s just a straight demand and supply type issue, the supply is there, volumes are increasing and consumption is down which piles on the pressure so while we are expanding we recognise that the environment is tough,” says Mr Mentis. Further pressures are being placed on the market with the growth of developing nations and their movement into the citrus fruit market, especially in the southern hemisphere. There is also cross-over in the market from producers in the northern hemisphere, increasing competition but Mr Mentis is not overly concerned for the short-term stating: “The business is healthy, we’re in a good position where we’re able to expand.” In the long-term he does hold significant concerns, “As a business we know that competition is increasing, there is pressure on price and smaller producers are finding it extremely difficult to stay competitive. The people that are doing well in the market are the larger groups like ourselves, moving large volumes with small margins.”
REMAINING COMPETITIVE With these concerns stemming from economic pressures and increasing competition it is important for Fruitone to maintain its position as a sustainable industry leader. Having a vertically integrated structure has gone some way towards achieving this and Mr Mentis is happy saying: “In order to remain competitive we have started to really integrate into the chain. We
PAGE 46 AUG 12
have our own transport and logistics division and that helps us take a margin out of the chain, instead of it going to someone else. We now market our own product which allows us to generate a margin and we’ve started our own chemical company where we are starting to purchase, import and supply our own production process with chemicals and fertiliser. “Depending on which way you look at it it’s a saving but there was an initial outlay and the chemical company will be making a margin.” Vertical integration is a logical step for a company the size of Fruitone and Mr Mentis explains the obvious benefits that arise from economies of scale. “We can utilise economies of scale for our procurement of goods and services, anything from packaging right through the chain. Our negotiating power is there which does help us to save.” In times of economic difficulty these savings are important and having a diverse range of customers is important. That is something which Fruitone has. Although the export market is their primary focus, a strong position in the domestic market and strong relationships with retailers and wholesalers mean that they will be able to cope with the pricing pressure and the increasing competition. On top of that, their commitment to their employees and local communities, their Fairtrade accreditation, their passionate and driven GM and their innovative expansion give them a real advantage in the market place. ●
HAMBURG SÜD
To Hamburg Süd, nothing is more precious that cold When Hamburg Süd South Africa’s Marc Linderboom talks about the company’s involvement in South African fruit exports the subject he really warms to is the importance of cold chain integrity. “We’ve been in the refrigerated transport business for well over a century,” he explains. “In the long-haul liner trades that account for such a big proportion of South Africa’s agricultural exports, Hamburg Süd’s experience is second to none.” As one of the top five reefer container carriers worldwide, Hamburg Süd specialises in the safe and reliable carriage of perishable cargoes. “It all starts with the provision of clean, undamaged containers with reefer machinery in perfect running order,” says Mr Linderboom, “So our M&R systems and personnel have a big role to play. But then the technology takes over. Product integrity involves continuos, optimal temperature setting throuhgout the journey. Our equioment achieves that, maintains it, monitors it and reports on it. The cold chain has to remian unbreakable. Our export customers need to be able to give their own customers unshakeable confidence in our ability to delivert the world’s best product in the same pristine condition it was in when the container was loaded. We provide a post-harvest, cold sterilasation capability which disinfests the fruit, and with a combination of multitemperature programs, controlled fresh air ventilation and automated humidity management facitilites, our systems can ensure just that.” In working with Fruitone, Hamburg Süd brings to bear the full gamut of its service capabilities. “Apart from our
“ This stuff is a religion and we’re big believers”
high-tech reefer capactiy, we also offer fast and frequent services into the Chinese, Japanese, Taiwanese and Korean markets – as well as a highly reliable relay service to Northern Euroe via out East Coast South America service that connects through Santos,” says Mr Linderboom. “And these Asian and European customers have choices, so they’re fastidious. They’re brand image orientated and they want customer ready product which lives up to South Africa’s reputation for first class quality. So let me tell you – we pamper the product.” Hamburg Süd is committed to maintaining its edge through the opertaion of a Global Reefer Competence Team which continuosly refines the company’s expertise and offers a range of customer support services. With fully operational offices in all key markets, this can extend throughout the entire cargo loading, intermodal transport and shipment delivery process. ●
AUG 12 PAGE 47
If you’ve got the fruit, we’ve got the punch! With our multi-port and end-to-end service options, Hamburg Süd gives you all the power you need to open up the lucrative Asia market. And with the benefit of our reefer expertise and kid-glove cargo care systems, we’ll deliver your shipment with all the delicacy that such fine fruit deserves.
Worth our weight in cold Hamburg Süd is a world leader in the delivery of secure cold-chain services, having helped to pioneer much of the reefer container technology now operating around the world. And with our dedicated teams of specialised reefer supervisors at both ends of each trade lane, you can be sure your shipments are in the safest possible hands.
No matter what.
The vast Asia market… ripe for the picking Ship with Hamburg Süd and North, East and Southeast Asia are all yours for the taking. Take advantage of our fixed-day weekly sailings, service reliability and competitive transit times. NEW GOOD HOPE EXPRESS – SLING 2
115
111
Our Asia services
Yokohama Tokyo Shanghai Nagoya Ningbo Hong Kong Chiwan Nansha
Kanto Express
Shanghai Ningbo Xiamen Hong Kong Keelung Shekou
Bankok Laem Chabang Port Kelang Singapore
Tanjung Pelepas Singapore
Durban Cape Town
Port Durban Elizabeth
A full range of market-tuned benefits Round voyage
77 days
Frequency
fixed-day weekly
Vessels
11 vessels
Capacity
4300 – 4600 TEU
Reefer plugs
320 – 880
Round voyage
49 days
Frequency
fixed-day weekly
Vessels
7 vessels
Capacity
3500 – 4400 TEU
Reefer plugs
300 – 500
• An effective cold sterilisation program for Japan, China, Korea and Taiwan • The fastest transit time from Durban to Hong Kong • Direct port calls to key entry points in Northern and Southern China per sailing
per sailing
RECEIVING / DELIVERY ADDRESSES
RECEIVING / DELIVERY ADDRESSES Brazil / Itajai APM Terminals – TECONVI Rua Coronel Eugenio Muller, 300 – Porto, CEP 88301 – 120 Itajai Santa Catarina SC Brazil / Paranagua TCP Terminal de Conteineres de Paranaguá S.A.Av. Portuaria, s/n° CEP 83203 – 970 PR – Brazil Brazil / Rio de Janeiro Terminal 1 - Libra Rio de Janeiro Porto do Rio de Janeiro – Ponta do Caju, Rio de Janeiro CEP 20931 – 670 RJ- Brazil Brazil / Santos (Eastbound) Terminal Libra T37 Rua Eduardo Magelhaes, s/n – Ponta de Praia, Santos CEP 11020 – 90 SP – Brazil
China / Hong Kong DP World Hong Kong Limited 1/F., Marine Building Berth 3, Singapore / Singapore Kwai Chung Container Terminal PSA Corporation Limited 33 Harbour Drive Kwai Chung, Hong Kong #2 Pasir Panjang Terminal Building Singapore 089055 OR
Plus Japan and Thailand! Brazil / Santos (Westbound) Santos Brasil S.A. (Tecon Terminal de Conteineres) Via Santos Dumont s/n Vicente de Carvalho – Guarujá CEP 11.450 – 160, SP – Brazil
China / Nansha GOCT, Longxue Dadao Nan, Wanqingsha Town, Nansha, Guangzhou P.R.C.
China / Shanghai Shanghai Shengdong International Container Terminal Co., Ltd. (SHSICT) No.1 Tonghui Road, Luchao Town Pudong Shanghai, PRC
Malaysia / Port Kelang Westport Malaysia Sdn Bhd P.O.Box 266,Pulau Indah, 42009 Port Klang, Selangor Darul Ehsan, Malaysia Terminal: -KMT
South Africa / Cape Town Cape Town Container Terminal Duncan Road P.O. Box 464 Paarden Island South Africa / Durban Durban Container Terminal South African Port Operations 3rd Floor, Administration Building Langeberg Road, Bayhead, 4072
Connecting via Hong Kong and Shekou, our Kanto Express service links you with Tokyo & Yokohama – and with Bangkok & Laem Chabang. We go further! China / Chiwan MCT (Ma Wan) Berth 5 Chiwan Container Terminals Co., Ltd. 18F, China Merchants Marine Center Main Tower, No. 59 Linhai RD, Nanshan District, Shenzhen 518054, PRC
China / Ningbo Ningbo Mei Shan International Container Terminal Ltd. Co. (MSICT) 1# YanChang Ningbo, China
China / Shanghai Shanghai Shengdong International Container Terminal Co. Ltd. (SHSICT) No.1 Tonghui Road, Luchao Town, Pudong Shanghai, PRC
South Africa / Durban China / Hong Kong Durban Container Terminal Hong Kong Int‘l Terminals South African Port Operations Container Port Road South 3rd Floor, Administration Building Langeberg Road Kwai Chung Container Terminal Kwai Chung, Hong Kong Bayhead, 4072
China / Shekou Shekou Container Terminal Ltd. Jetty Three, Harbour Road 518069 Shekou, Shenzhen China
Singapore / Singapore PSA Corporation Limited 33 Harbour Drive #2 Pasir Panjang Terminal Building, Singapore 089055
OR
China / Ningbo NBCT Ningbo Beilun South Africa / Durban Int. Container Terminals Transnet Port Terminal Beijixing Road, Beilun Port Pier 1 – Container Terminal Ningbo, China Port Entrance 8 Port of Durban
The Hamburg Süd edge China / Hong Kong – HSD DP World Hong Kong Limited 1/F., Marine Building Berth 3, Kwai Chung Container Terminal Kwai Chung , Hong Kong
China / Hong Kong – ML & 3C Modern Terminals Limited (MTL) Berth One, Kwai Chung Hong Kong
Malaysia / Tanjung Pelepas Pelabuhan Tanjung Pelepas Sdn. Bhd. (328719-k), Blok A, Wisma PTP, Jalan Pelabuhan Tanjung Pelepas, TST 507, 81560 Gelang Patah, Johor Darul Takzim, Malaysia
Taiwan / Keelung Eastern Cntr Port Terminal United Logistics Intl Co (ULIC) No. 1-5 Tung Hai Street Keelung, Taiwan
South Africa / Port Elizabeth Lower Ground Port Administration Building Green Street, EXT. Port Elizabeth South Africa
Exceptional on-time performance earns Hamburg Süd a regular place at the top of the industry’s worldwide schedule reliability tables. Our world’s best practice approach to environmental care utilises the latest vessel construction & propulsion and refrigeration technologies to help minimise emissions, avoid pollution and reduce our maritime operations impact. Durban
Johannesburg
Cape Town
Port Elizabeth
+ 27 31-334 4777
+ 27 11-615 1003
+ 27 21-551 6782
+ 27 41-581 2692
www.hamburgsud-line.com
COMPANY REPORT
Seeing property
differently By Roland Douglas
With more than a century of experience in the property service industry JHI is an organisation now managing approximately R50 billion in assets. Constantly being awarded and expanding with new contracts IndustrySA takes a look behind the bricks and mortar. Managing property is not an easy process. Ask any home-owner, anyone who leases a property for business or any real estate business. There is a complex maze of issues, from legal to practical, that becomes more and more difficult to navigate with the addition of each new asset. When you have around 1800 buildings under your management, across a range of different countries things can get very difficult. However, that does not seem to be the case for JHI. The expert property management company serves around 15,000 tenants and although this makes them one of the largest property management companies on the continent they are still constantly receiving awards for excellence and having new contracts and business proposals put in front of them. The director of property management at JHI is Johann Boshoff, he also sits on the board of directors and he recently took the time to talk to IndustrySA and tell us about the success of the business. “JHI was founded more than 100 years ago, we went through a merger and the current staff came from two companies – the original JHI and Gensec property services. The merger occurred in 1997 and the combined portfolio at the time was worth around R22 billion.
PAGE 50 AUG 12
Joina City Harare
Atlantic Centre Foreshore, Cape Town
Since then we’ve more than doubled asset value under our management to around R50 billion.” The vision of the company is ‘to be the prime property partner within the markets we operate, with our roots based in the South African market’. Since the merger the organisation has been able to offer a more ‘mature and comprehensive’ set of property services and take a big step closer to achieving that vision. So what services does a modern property management company offer? JHI can handle a wide range of demands including: project and development management, consulting and research, valuations, brokerage service and investment consulting, structured procurement and logistics, residential development and third party tenant and lease management among a host of other services.
EXCELLERATE JHI is a subsidiary of Excellerate Property Services, an organisation offering a full list of property solutions as Mr Boshoff explains: “Excellerate has a cleaning company, a security company, a parking management company to name a few, and the mission there is to build
JHI
a fully-fledged property services organisation, offering core services in all areas of the property business. JHI Properties is the property management division. JHI Residential mainly looks after student lettings and the management of student accommodation as well as other residential properties.” The Excellerate business, like JHI, is looking to grow. It has three core business divisions: trading and distribution, services and light manufacturing. JHI falls under the services division and manages property for listed funds, private owners and various institutions. Mr Boshoff makes it clear that JHI would like to expand into the private market, a calculated decision considering the positivity emanating from the property market in recent times. Commercial property has been a shining star for South Africa over the past ten years, outperforming major cities including New York and London. Investment Property Databank’s (IPD’s) Global Cities Report showed that Cape Town and Johannesburg showed the strongest growth in property values over the last ten years. The report compares real estate
AUG 12 PAGE 51
COMPANY REPORT
There are growth opportunities in South Africa but we are looking into Zimbabwe and West Africa, in particular Ghana and Nigeria performance in 60 cities in 24 countries. It also examines the impact of tourism, gross domestic product, exchange rates and national debt on property performance. Johannesburg and Cape Town outperformed major global cities due to growing investor appetite and the fact that its property was sheltered from the global financial crisis, the report found. “Only a select few cities around the world have values above their pre-recession peaks - among them Johannesburg, Cape Town, Zurich, Munich, Toronto and Seoul, while Dublin has remained bottom of the list for three consecutive years,” says Peter Hobbs, IPD senior director for group business. The growth opportunities for JHI do not stop within the South African borders. The company already has successful operations running in Lesotho, Namibia, Ghana, Zimbabwe and Zambia and they have their ears to the ground as they plan the next move. “There are growth opportunities in South Africa but we are looking into Zimbabwe and West Africa, in particular Ghana and Nigeria. We have an office in Zimbabwe which is growing steadily and running successfully. We got involved there about a year ago and there is a lot of potential there, Zimbabwe is a country with one of the highest growth rates,” says Mr Boshoff.
ORGANIC GROWTH The growth strategy in place at JHI is carefully thought out and is most certainly not a rushed process. “When you move into new markets you need people who understand those markets. In the next year we will be looking to make our moves in Ghana and Nigeria and there are opportunities which we are investigating. We only open new offices on the back of new income so we look for facility management contracts and property management assignments and then we will open new offices but they must be able to support themselves,” says Mr Boshoff. This type of organic growth is more
PAGE 52 AUG 12
Marna van der Walt CEO of JHI Properties
structured and provides the potential for long term success. The approach has also been proven throughout the history of JHI. It is a testament to the strength of the business that they are able to grow in tough economic times. The financial pressures felt in Europe and the US have not been as strong in South Africa but Mr Boshoff tells us that in some cases it has even given business a boost. “We were lucky as we found more and more people approached us as they realised that in times like these you need special skills to survive the economic downturn and to extract value from a portfolio and that also contributed to our growth.” He also states that: “The effect of the worldwide economic slowdown for us is uncertainty, weaker global and local markets and escalated energy costs but the company has still countered that with new business.” One of the most recent new contracts taken up by JHI is under the JHI Residential arm of the business and involves managing ten properties in the Johannesburg area. The properties are mainly student lets with some residential flats and lofts. Thea Bezuidenhout, director of JHI Residential, said that the company plans to manage more student properties, “We are already exploring further opportunities in Pretoria, Durban and elsewhere in Africa – including Namibia.” She added, “In regard to the student accommodation we are also handling maintenance of the facilities, arranging security and transport of students to and from nearby Wits University, collection of rentals, managing the trust account and keeping of management accounts on behalf of the landlord.” JHI Residential has also been awarded the management contract for a new 187-unit residential development, Southwark Mews, which is situated in
COMPANY REPORT Parklands in Table View, Cape Town. Southwark Mews comprises two bedroom flats with modern finishes, which are available to rent through JHI Residential from R3850 per month. The complex includes an on-site building manager, access control for both cars and pedestrians, free parking for residents and visitors, a children’s play area, pre-paid electricity and water meters, coin operated laundry services and a communal DSTV dish. In the KwaZulu-Natal region the Dubai-based Darvesh Group, which operates in the packaging industry in South Africa, has taken up 11,000sqm of space in New Germany Industrial Park in a lease transaction concluded through JHI Properties KwaZulu-Natal leasing and sales consultant Nigel Atherstone. Further evidence of the on-going demand for large industrial space is a ten year lease for a site of 13,550sqm in the new ‘Twenty One’ industrial estate in Olifantsfontein, Gauteng, in a transaction concluded by JHI Properties investment broker David Reid on behalf of All Joy Foods. The value of the lease is approximately R60 million.
Nedbank
PAGE 54 AUG 12
Further positive news is that Braamfontein in Johannesburg’s inner city is rapidly emerging as a vibrant growth node and experiencing a surge in demand for property. Currently JHI has a number of investors who perceive the potential of this area and are looking at acquiring property with a view to the refurbishment and upgrading of buildings Mr Boshoff is proud of these new contracts and achievements. “Our CEO, Marna van der Walt was elected business women of the year in 2011 in South Africa and we were also recently accredited with the ISO9001 standard for quality management systems and processes.” JHI also recently had success with their corporate social responsibility programme when the Chatsworth Shopping Centre in Durban, which is owned by Sanlam Life Insurance but managed by JHI, was internationally acknowledged for a community project initiated by the centre management to raise awareness among schoolchildren of the serious effects of drug use. What is about JHI that keeps successes like this rolling
JHI in? Mr Boshoff tells us it is the people and the reputation. “Our diverse skills base coupled with our workforce’s innovative, entrepreneurial drive. We really support our clients businesses; we don’t want to be the biggest we just want to be the most effective management company. We believe in a partnership approach and we take a holistic view of our clients’ portfolios and part of that is a great attention to detail. “We have a great track record, since the merger in 1997 we haven’t lost a single management contract and that bears testimony to the service levels we aspire to.” This statement from Mr Boshoff is truly astounding and shows that the business is clearly keeping its clients happy and ultimately that is only going to result in benefits and continued growth. As for the future, Mr Boshoff’s advice to people fresh in the property industry is simple – if you get involved with someone else’s management do it as if it’s your own. A core driver behind the success of the JHI, which is only set to continue as the company expands internationally and locally. ●
JHI – CURRENT PORTFOLIO ➜ Approximately R50 billion in asset value ➜ Approximately 1800 buildings ➜ Approximately 15,000 tenants ➜ Approximately 7.9 million m² under management ➜ Commercial = 5.4 million m² ➜ Retail = 2.5 million m² ➜3 14 shopping centres with a total GLA in excess 2.5 million m² and with high occupancy levels ➜O ffice and industrial developments with a total GLA in excess of 5.4 million m² ➜A n estimated 617 industrial buildings, which include low and high grade industrial, warehousing, mini and maxi units, and hi-tech properties. ➜O ffices and offices parks comprising over 800 properties
Southwark Mews
AUG 12 PAGE 55
COMPANY REPORT
25 years and rolling on strong By Joe Forshaw
Chairman and Managing Director of Concargo, David Kruyer, tells IndustrySA about South Africa’s premier transport and logistics organisation.
The logistics industry is very important. Every nation on the planet has a logistics industry and some run smoother than others. What is logistics all about? Officially it is managing the flow of resources between two (or more) points. Logistics is no longer just about moving goods from one location to another, modern logistics operations involve transportation, storage, security, packaging and coordination. Logistics has become big business with some of the world’s largest companies, and most recognised brands (DHL Global Forwarding, MCS Mediterranean Shipping Company and Maersk) operate primarily in logistics markets. Effective management of customers and careful attention to quality and detail are things that are required in any business but in the logistics industry they are particular important as customers place such a high level of trust in their logistics contractor. Concargo is one of South Africa’s primary logistics organisations and by preaching effective customer
PAGE 56 AUG 12
management they are on the up, gaining new business every week. The company’s vision is to be the absolute very best provider of logistics and transportation solutions and services throughout South Africa and Southern, Sub-Saharan and Equatorial Africa. David Kruyer is the Chairman and Managing Director of Concargo and he tells IndustrySA about what has made Concargo successful so far and what will be happening in the future to ensure that success continues. “One of our main objectives is to increase our African footprint, across all 54 countries. Right now we have our Head Office in Cape Town and offices in Johannesburg, Durban and in Zambia and associated offices throughout the rest of Africa.” The ambition to grow over the continent follows a general trend which we are noticing more and more. High growth nations such as Zimbabwe, Ghana and Nigeria are attracting regular business from South Africa as organisations thriving in the growing economy at
CONCARGO
home look to expand and take up market share in these emerging nations. Concargo is in the business of road haulage, that is the core activity and the range of industries serviced is vast. Concargo engages with many of the multinational industry verticals such as the Renewable Energy Sector, Oil & Gas, Aerospace & Defence Deployment, Construction Plant & Equipment, Mining Logistics, Publishing & Printing works, Telecoms & Electronics and to the entertainment industry, providing Event & Exhibition Logistics services. “We are intent on being the service provider of choice into Africa,” says Mr Kruyer and he knows as global competition increases, distribution management decision-making has become increasingly complex. The need to gain greater efficiency from Southern African transport companies is now crucial to any company wanting to focus on key skills and core competency. The fastest growing area within the framework of distribution
and logistics service management is the ability to provide reliable supply chain services from start to finish and as Concargo offers an extensive range of supply chain and transportation services there is no reason why they cannot become the service provider of choice.
GETTING THE WORD OUT “Business is good,” says Mr Kruyer. “We have no complaints with organic growth and we are focussed on new business acquisition. Business doesn’t just come knocking on your door.” The business has recently increased its marketing push with ventures into social media and a brand new, very impressive website which Mr Kruyer is understandably proud of. “We have ramped up our social media strategy, we’ve put out a very good 185 page website which is very tutorial – it’s there to educate commerce and industry and also to enlighten our Strategic Business Partners & Alliances with Clearing and Freight Forwarding companies with whom
AUG 12 PAGE 57
COMPANY REPORT
“ We can chart the path to the future clearly and wisely only when we know the path which has led to the present.”
we collaborate daily.” This fresh marketing initiative will only assist the Concargo business as they look for growth on the continent and as business in general picks up pace following the global economic slowdown. The financial pressures that have been felt all over the world, following difficulties in the US and Eurozone, have affected South African businesses very differently with some reporting no ill effects, some reporting major difficulties and unusually some reporting better business. The logistics industry was one that was affected but, as Mr Kruyer tells us, it could have been worse. “The business grew exponentially from 1987 until July 2009. In 2009 we started to feel the recession in South Africa and it took us all by surprise. We felt it all the way through until June 2010. There was a big impact on imports and exports. “July 2010 to June 2011 was a bullish year and the business recovered its exponential growth.” Even in times of difficulty it is important to promote the business and get the word out there. The fact that Concargo came through tough economic times bears testament to the marketing policy and the reputation of the company.
PAGE 58 AUG 12
With the government undertaking large infrastructure investments there are lots of opportunities on the horizon in the logistics industry. Specifically for road haulage, there is to be big upgrades of major ports and the automotive industry is growing so there are a lot of potential contracts to fight for. “Growth is absolutely the main goal,” says Mr Kruyer, and he is referring to all areas of the business. Even the corporate social responsibility aspect of the business is growing. Concargo has entered into joint ventures and various other projects with the aim of helping others in business as Mr Kruyer explains: “We are entering into Enterprise Development Partnerships where we mentor others and encourage social upliftment. We can help other businesses who are looking to achieve the same goals as us increase their knowledge base and it’s beneficial as both parties will share in the profitability of any business they procure.”
AWARDED FOR EXCELLENCE Throughout its 25 year life the Concargo business has frequently been recognised for its success and business excellence. In 2005 Concargo won a gold international
DHL AFRICACONNECT. YOUR RELIABLE CONNECTION TO SOUTHERN AFRICA AND BEYOND. ·······
DHL Global Forwarding offers you the most reliable road freight network in Southern Africa. With a wide range of services, from consolidation and dedicated vehicles, to super-link loads we have solutions for all your transportation needs. With value added services, like customs clearance, insurance, smart sensors, SMS notifications and ePOD we can adapt according to your requirements. Overland transportation with DHL Global Forwarding is easier than you expect. www.dhl.co.za
COMPANY REPORT
quality award for excellence and business prestige, presented by Jose Prieto, President of the Business Initiative Directions (BID). These prestigious awards are presented to companies in recognition of their commitment to leadership technology, innovation, quality and good practices. In 2004 Concargo received an international transport award in Madrid. The awards were hosted by the Trade Leaders Club and Editorial Office, whose objective it is to distinguish, stimulate and promote companies belonging to the important field of supply chain logistics and transport. Perhaps the driving force behind this success is the fact that Concargo has had the same people pushing for the same goal for a long period of time. “The company started in 1987, one of our directors has been with us
PAGE 60 AUG 12
since 1988 and then we have people who have been here for 17 years, 12 years and so on. Retention is always a sign of stability,” says Mr Kruyer If the expansion into the rest of the continent continues and Concargo manages to seal future contracts then further stability will be provided. Of those future contracts, of which there are many, Mr Kruyer is targeting the renewable energy industry as one with real potential saying: “Renewable Energy” has a buzz around it in Africa. There is set to be a big spend in South Africa on solar and wind power and this may require the relocating of equipment internationally and we can help here through our partnership with the Heavy Lift Group. “Renewable Energy and Oil and Gas are industries providing great job creation at the moment.”
FRUITONE
David Kruyer
Looking slightly further into the future thereare more opportunities for the business including work with the SKA (Square Kilometre Array) telescope project and the MeerKAT project. In these projects thousands of radio wave receptors will be placed across Australia, New Zealand and Southern Africa. The satellite dishes will help scientists answer questions about the universe and Mr Kruyer sees an opportunity. “There will be dishes in Mozambique, Uganda and Namibia as well as South Africa and a lot of the equipment will be manufactured here. Specialised equipment will be imported from various parts of the world and both the MeerKAT and SKA projects are certainly things we want to be involved with.”
A QUARTER CENTURY 2012 marks the 25th anniversary of the Concargo business and throughout the quarter century many lessons have been learnt. Mr Kruyer gives us some advice when it comes to good business: “You can study, get degrees and everything else but it doesn’t even remotely mirror the practicalities on the ground. The only way to get experience is to get in there and get your hands dirty.” Concargo has vast experience, and with the opportunities on the horizon and the recovering economy allowing for growth and expansion there is no reason why, 25 years from now, Concargo will not be celebrating a half century at the top of the transport and logistics industry. ●
AUG 12 PAGE 61
As specialists in fabrication, manufacturing and perimeter fencing, TESA has exclusive in house engineering resources and technical insight with the ability to offer creative, sophisticated solutions. TESA manufactures all forms of fabricated and engineered product including antennae brackets, solar panel structures and supports, enclosure awnings, grillage frames/foundations, gantry poles and tower templates which continue to evolve based on market requirements.
Congratulations to David and Beverley Kruyer and the Concargo Team on your 25th Silver company Anniversary. Heading for Gold! 5 MARCONI CRESCENT I MONTAGUE GARDENS I MILNERTON I CAPE TOWN I SOUTH AFRICA
T +27 [0] 21-551-2955/6/7 F +27[0]21-551-8883
WWW.TESAFENCING.COM
TESA
TESA steel manufacturing & fabrication specialists passive infrastructure solutions TESA is one of South Africa’s leading fencing manufacturers and complete fencing solutions companies. IndustrySA finds out a little more about the business. Celebrating 10 years of success recently, TESA has evolved and diversified from the local domestic
“ With four awards since 2008, two at International level, TESA has attained recognition and cemented its status as market leader in the supply of fabrication solutions in the African telecoms market”
market and construction industry to become a significant fabrication solutions contributor to international industry. With four awards since 2008, two at International level, TESA has attained recognition and cemented its status as market leader in the supply of fabrication solutions in the African telecoms market. Recent recipients of the Transnet Port Terminals award for Excellence in Engineering and Manufacturing in the WC Exporter of the year and World Quality Commitment Awards, the company has earned a reputation for being adaptable to the ever changing specifications in the market it operates in and is renowned for quality products and exceptional service offerings. TESA possesses much knowledge and expertise in the field of mass light steel fabrication, product design and perimeter fencing. Key competencies are many and diverse. Unique research and high volume manufacturing processes have won significant market share by successfully meeting blue chip quality and audit requirements through innovation and superior commitment to customers. The end result is a series of lasting value – customer partnerships. TESA take pride in commitment to quality and levels of service and after sales service beyond the expected and are ISO 9001: 2008 Quality System listed, a trademark on their unique fencing pale and is a member of the Hot Dipped Galvanizing Association of South Africa.
PRODUCTS Large scale steel fencing and fabricated and engineered products are manufactured including antennae brackets, solar panel structures and supports, enclosure awnings, grillage/ foundations, gantry poles and tower templates. The product continues to evolve and are easily adaptable to budgetary and operational requirements with emphasis on project deadlines. More than 5000 fences have been supplied for the cellular Base Transmission Stations (BTS sites) to networks including
Cell C, Vodacom, MTN, Orange, Airtel, Mascom, BTC, Atlantique, Econet, Telecel, 8ta and OEM’s Ericsson, NSN, Huawei, ZTE partnering with TESA for site solutions. Renewable projects, retail centres, housing estates, solar farms and golf courses in Africa are other focus areas and products are tailored for various industries including mining, renewable energy, infrastructure and telecoms through consulting engineers, architects and Project Managers. In the telecoms industry, TESA provides a total passive infrastructure solution of tower, perimeter and power management. This model of passive infrastructure bundling is becoming increasingly in demand as a result of the change in the tower company landscape in Africa with Telecom operators aggressively pursuing tower share to reduce costs. Innovative solutions to maintain margins and reduce pricing are being pursued by TESA and include the importing of material and designing of low cost specification. In house design capacity and engineering resource offer creative and sophisticated solutions to meet fabrication and infrastructure demands. ● Website: www.tesafencing.com Head Office: 0861 929292 Sales: +27 8287 29545 for English – scott@tesafencing.com + 27 7249 96991 for Chinese – Richard@tesafencing.com + 27 7994 75056 for Portuguese – Mario@tesafencing.com Engineering: + 27 21 551 2955 Sales fax: +27 21 551 8883 Engineering: + 27 21 551 2955
AUG 12 PAGE 63
COMPANY REPORT
Fair Cape Dairies: Doing the right thing
The motto of Fair Cape is ‘Do the Right Thing’ and that is something which they stick to. Reducing the carbon-footprint of their By Joe Forshaw production, being completely transparent with customers, acting ethically with employees and ensuring animal welfare are all elements which make Fair Cape the most environmentally friendly dairy in South Africa. By Joe Forshaw 15 kilometres from Cape Town, in an area known traditionally for its wheat farming, the Western Cape is home to a family business founded more than 150 years ago. In its fifth generation of Loubser family ownership, the Welgegund farm is going from strength to strength and continually expanding its fantastically well received product range. The business is currently run by five Loubser brothers: Viljee, Louis, Melt, Johannes and Eduard (Junior). They all share a passion for excellence, inherited from their father Eduard (Senior) who was responsible for growing the farm in the 1950s from a small scale operation to a diversified farming business with a long term vision. As the area around Durbanville is known more for wheat farming it is only logical that the Fair Cape farm would look at producing quality milk. Today milk forms the core of the farms production. Eduard Loubser (senior) decided to increase the dairy activities of the farm in the 50s when he began to grow the farm as a whole. The farm now has a well-bred, healthy, strong herd of Friesland cows producing milk of outstanding quality under optimal conditions. CEO of Fair Cape, Melt Loubser, has been elected as a director of Milk SA and the chairman of SAMPRO (South African Milk
PAGE 64 AUG 12
Processors Organisation) and President of SANCIDF (South African National Committee of the International Dairy Federation) proving that there is an experience and knowledge of the milk industry that is unrivalled in the market place. The business at Fair Cape is most definitely a family affair with the Loubser brothers the five directors of the company. However, the labour on the farm has grown with the family. Most of the workers are currently in the fourth and fifth family generations suggesting that the 800 people employed by Fair Cape are happy and we know that a happy workforce means happy product and happy product means happy customers. At Fair Cape dairy is the primary business focus but in the past there have been farming activities including a piggery, Angus cattle beef section, wine farming and sheep farming.
WOOLWORTHS The relationship with Woolworths is something that Fair Cape holds close to its heart. They supply Woolworths with a dairy range, on a national basis, that is marketed
FAIR CAPE DAIRIES
under the Woolworths brand. In 1997 Fair Cape opened a dedicated production facility in which all of Woolworths dairy range is produced. The deal was a breath of fresh air to the Fair Cape business as previously the market had been dominated by monopolising organisations who gave low prices to suppliers and high prices to customers. Fair Cape used various methods to add value to their products and it was this innovative thinking that sealed the contract with Woolworths. Louis Loubser, sales and marketing director for Fair Cape tells IndustrySA more about the partnership: “There are two main dairy suppliers to the Woolworths business and Fair Cape is the larger of the two,” he adds: “Working with Woolworths forces you to ensure massive quality standards, obviously, because it’s the Woolworths brand the product has to be quality.” He continued to say: “The system set up here is
really second to none,” referring to how working with Woolworths had placed such an emphasis on quality production the partnership has benefited the business greatly and encouraged the implementation of highly technical computerised quality systems.
FAIR CAPE ECO-FRESH Reducing the carbon footprint of production and working in a way that is friendlier to the environment is something that is at the top of everyone’s list in the country right now. The government are sponsoring ‘green’ projects and actively encouraging businesses to take up carbon-reduction policies. Fair Cape Eco-Fresh milk takes the concept of cow welfare and environmental friendliness to a new level. Eco-Fresh milk takes in a much broader scope of environmental issues while still, of course, retaining a
AUG 12 PAGE 65
COMPANY REPORT
commitment to animal welfare. A factor that influenced the decision to produce Fair Cape Eco-Fresh milk was that Fair Cape was a late entrant to the market as Mr Loubser explains: “If you go to the buyer and tell him you’ve got a bottle of milk or a cup of yoghurt to sell him he will tell you he has 200 others trying to sell him the same thing so that has forced Fair Cape to produce differentiated products such as the Fair Cape Eco-Fresh milk. “If you want to get products listed it has to be different, it has to be innovative.” Fair Cape Eco-Fresh milk is based on four pillars: Pillar one is about decreasing pollution. One of the major problems with dairy farming is pollution due to the effluent from the cows running into the ground water. Fair Cape uses an innovative and hygienic system to ensure that no water is wasted and waste solids are used for fertiliser on the farm therefore ensuring that the ground water is not polluted. It’s a relatively new system, based on an Israeli system called Afikim. The second pillar on which Fair Cape Eco-Fresh milk is based is the use of eco-friendly farming practices. “We have decreased the use of chemical fertiliser by over 20% which is quite an achievement.” Thanks to the methods mentioned in pillar one much of the fertiliser used is natural, without chemicals at all. The third pillar is all about animal welfare. “Cows can
PAGE 66 AUG 12
get very heat stressed so we have built massive sheds in which the cows live. These sheds have a special design which helps funnel hot air out and keep the cows cool and dry. It allows the cows access to both the under roof and outdoor sections and is based on the concept of cow comfort” Fair Cape has a highly technical milking system which closely monitors the cow’s welfare and health. The farm milks over 1800 cows three times a day and by tagging each cow with an electronic anklet the computer can monitor everything from weight and milk yield to white blood cell count. “An increased amount of white blood cells can signal that the cow is going to get ill. As the cow steps onto the milking table the computer will give it supplementary foods where necessary to ensure it has the correct amount of energy. If the computer notices a problem with the cow then it will be automatically kept in a holding pen as the others leave and a vet will be on hand to deal with it,” says Joel Serman from Fair Cape. Fair Cape also employs a cow comfort index which measures a range of variables related to cow welfare every month. “We have a target of 85% and we are yet to score under that target. It measures everything from body condition to the reliability of the computer systems.” The fourth pillar involved in Fair Cape Eco-Fresh milk is about the carbon footprint of Fair Cape’s milk production. Fair Cape is the only dairy company to
FAIR CAPE DAIRIES
“We have decreased the use of chemical fertiliser by over 20% and considering we farm over 300 hectares that is quite an achievement” display their carbon footprint on their milk bottles. It is displayed on the label along with the steps which Fair Cape have taken to reduce their footprint and an invitation to their consumers to watch out for further initiatives. “There is a spirit in the country of moving towards a green economy. We did a lot of research with our consumers and people want to do something good for the cows and the environment and they can when they buy milk. We have a very loyal following because we are very transparent, we do weekly school tours of our farm and have a very active Facebook page promoting our carbon reduction policies.” says Mr Loubser. By following these four pillars Fair Cape Eco-Fresh has grown into a major brand. The innovative farming techniques used and the transparent marketing strategy all add up to make Fair Cape Eco-Fresh different and trustworthy.
DEALING WITH THE FINANCIAL PRESSURE The global economic slowdown is something which all businesses have their eyes on, especially businesses that trade internationally. Fair Cape makes most of its products for the domestic market but they have still felt some pressures. “I think the whole dairy market is under pressure both in terms of volumes and margins but the sales of the Fair Cape Eco-Fresh product have been fantastic, even with the pressure in the retail sector,” says Mr Loubser. The business success does not stop with good sales figures. “This month we were chosen by the African business awards as one of the top five companies in South Africa for marketing excellence for the Fair Cape Eco-Fresh brand. “We will continue to market our products successfully and we want to continue to bring down our carbon footprint while introducing new products” While the purpose of any business is to make money Mr Serman reminded us that profits will come as a by-
AUG 12 PAGE 67
COMPANY REPORT 2011 AWARDS Category: Yoghurt Fat Free Plain Yoghurt 2nd Place - Fair Cape Daries Bulgarian Fat Free Flavoured Yoghurt 1st Place - Fair Cape Daries Vanilla Low Fat Drinking Yoghurt Flavoured 2nd Place - Fair Cape Dairies Toffee Low Fat Yogurt - Any Condiments except fruitand flavourants 2nd Place - Fair Cape Daries, Checkers ChoiceMuesli Full Cream Yoghurt - with Condiments 1st Place - Fair Cape Daries Barney Peach Category: Cultured & Flavoured Milk Full Cream Maas 1st Place - Fair Cape Dairies Amasi Flavoured Milk - Macimum 3.5% butterfat 2nd Place - Fair Cape Dairies Vanilla Ice Cofee Category: Dairy Desserts Vanilla Custard - UHT, Pasteurized or Fresh 1st Place - Fair Cape Daries Vanilla Custard - also a Qualite Award Winner Non-Frozen Dairy Desserts - other than custard 1st Place - Fair Cape Daries Vanilla Custard - also a Qualite Award Winner
2010 AWARDS Category: Yoghurt Fat Free Bulgarian Yoghurt 1st Place - Fair Cape Free Range™ BulgarianYoghurt Fat Free Flavoured Yoghurt 3rd Place - Fair Cape Free Range™ VanillaYoghurt Low Fat Plain Yoghurt
let us know. 3rd Place – Checkers Choice Bulgarian @industry_sa Low Fat Drinking Yoghurt, flavoured or fruit www.facebook.com/ECPindustrysa
1st Place – Fair Cape Toffee Fudge DrinkingYoghurt Low Fat Yoghurt, any condiments except fruit & flavourants
product of good business and not the other way around. “Our motto is ‘do the right thing’, being environmentally aware MTN’s and vision looking is after to become our animals, the leading and by communicating telecommunications this effectively providerwith for emerging our consumers markets. we have They managed have a to presence get an amazing in Botswana, buy-in.” Cameroon, The Côtesuccess d’Ivoire, ofNigeria, Fair Cape Republic is not surprising. of Congo (CongoThe Loubser Brazzaville), brothers Rwanda, have worked South Africa, hard toSwaziland, promote their business Uganda, across Zambia, the country Iran, Afghanistan, but a commitment Benin, Cyprus, to the environment, Ghana, Guinea to the Bissau, animals Guinea and to Republic, not hiding Liberia, anything from Sudan, the consumer Syria and Yemen. is the real reason behind the success. The It research looks asand though development they are will well undoubtedly on their way see to more achieving successful theirproducts vision. Their enter mission the FairisCape to speed portfolio up andthe the progress carbon of footprint the emerging will definitely world bydecrease enriching making the thislives family of the business peoplean within example it. to follow for businesses in any Are industry. they achieving ● this mission? Get in touch and
PAGE 68 AUG 12
1st Place – Fair Cape Free Range™ - MuesliYoghurt 2rd Place - Fair Cape Free Range™ - RooibosYoghurt Category: Cultured and Flavoured Milk 2rd Place - Fair Cape Iced Coffee Hazelnut
2009 AWARDS CATEGORY: Yoghurt Low Fat yoghurt with any condiments: 1st Place - Fair Cape Free Range™ - RooibosYoghurt 2nd Place - Fair Cape Free Range™ - MuesliYoghurt 3rd Place - Fair Cape Free Range™ - ChocolateYoghurt Low Fat drinking yoghurt – flavoured of fruit: 2nd Place - Fair Cape Dairies – Granadilla CATEGORY: Low Fat Cultured Milk (Buttermilk): 2nd Place - Fair Cape Dairies - Buttermilk
Product integrity! Convenience! Appeal! Information! Branding!
Proud packaging suppliers to Fair Cape.
Charles Muller +27 11 615 8011 • www.astrapak.co.za
THE AD SHOP 2431
COMPANY REPORT
Most valuable brand, best employer, most socially responsible company… The list goes on By Joe Forshaw
MTN are one of the leading communications companies on the planet. They have a large footprint in South Africa and constantly innovate with new service offerings and packages. As they grow they are becoming more involved with the roll out of broadband across the nation, something which President Zuma has placed a large emphasis on. By Joe Forshaw Brand Finance together with Brand South Africa and Brand Africa recently launched the Brand Finance South Africa 50, a research project which studies and lists the most popular and valuable brands from the rainbow nation. The financial clout of the 50 most valuable South African brands was measured. All of the brands come from South African companies that operate both within and outside the country. On top of that list with a value on R43.3 billion is communications company MTN. They are also the only South African brand in the Brand Finance Global 500, one of the most definitive guides to the world’s top 500 brands. MTN is truly a brand that South Africa can be proud of as they continue to grow, expanding both their presence across the African continent and also
PAGE 70 AUG 12
their foothold in the Middle East. Ollie Schmitz, MD of Brand Finance South Africa gave an insight as to why MTN is performing so well. “The uniformity of the MTN brand and its ability to transcend all eleven of South Africa’s languages, as well as the multitude of international languages across the African continent is one reason that it has succeeded so well.” Founder and executive chairman of Brand Africa, Thebe Iklafeng also paid tribute to the MTN brand saying: “The results affirm South Africa, and indeed Africa, as being at the cutting edge of and setting global standards in building telecoms and financial services and brands. “It is therefore not surprising that MTN, with over 100 million customers across Africa is again the leading African brand that embodies the entrepreneurial spirit of great South African brands.”
MTN
In Europe some mega-brands have recently fallen thanks to the serious economic slowdown that is affecting the whole world. South Africa has remained strong, its financial institutions being praised around the world and business leaders being encouraged to look to South Africa as an example of how to make businesses thrive in difficult economic conditions.
MARKET DOMINANCE MTN SA was founded in 1994 after it received permission to roll out its GSM (Global System for Mobile communications) network in 1993. The company is part of the MTN Group which is listed on the JSE and has over 152 million subscribers across its operations in 21 different countries. With 20 million customers in South Africa the company enjoys a 37% share of the market and it is this
figure that MTN will look to grow over the coming months and years. Most of you will have heard of MTN through their mobile phone offerings or their broadband packages and indeed it is these business areas that have built the MTN brand. The company provides voice, data and telemetry offerings and solutions to its customers in South Africa. The mobile network coverage is top of the range and the broadband connectivity and internet services are constantly improving. IndustrySA reported earlier in the year about the West African Cable System (WACS) being launched and improving broadband connectivity. MTN was the single biggest investor in the WACS (a submarine cable that links the South Africa and the west coast of Africa with Europe) and has continued to invest in other submarine cables including the Eastern Africa Submarine Cable System (EASSy) in order to bring
AUG 12 PAGE 71
COMPANY REPORT
its customers the best internet service possible. After investing around US$100 million in the WACS MTN saw broadband capacity increase by more than 500 Gigabits per second (Gbps), a welcome rise considering demand had quadrupled during 2011 thanks to the smartphone boom. State-owned company Infraco also contributed in the investment which forms part of the government’s plans to create jobs and grow the economy. Chief technology officer at MTN South Africa, Kanagaratnam Lambotharan said: “MTN’s investment in WACS will now ensure that millions of our customers can speed along the global information superhighway by accessing huge capacities with the ability to optimally utilise data and telemetry offerings which modern telephony applications provide.”
SPONSORSHIP MTN are involved in initiatives and projects around the country. Their sponsorship helps develop and celebrate cultural programs that showcase South African talent.
PAGE 72 AUG 12
They are heavily involved with South African sport and in particular, football, cycling and rugby. MTN also sponsor music and lifestyle events and they are the main sponsor for the SAMA (South African Music Awards) concert - a gig where all 18 of the SAMA record of the year nominees perform live on stage. MTN was also the official sponsor of the Joyous Celebration tour in 2011, which saw the Joyous Celebration gospel tour around six cities, performing at the top venues, offering mesmerising entertainment. In football MTN are key sponsors for a number of different clubs. The Golden Arrows or Abafana Bes’thende, the Black Leopards, Ajax Cape Town and Bloemfontein Celtic are the four clubs that enjoy MTN sponsorship in the Premier Soccer League. MTN also sponsor the most lucrative club competition in Africa, the MTN8. The top eight teams from the previous season go head to head in a knock out competition, the longest standing cup competition in South Africa, in its fifth year in partnership with MTN. The company also recently sponsored the Football Invitational Challenge
BYTES SYSTEMS INTEGRATION Bytes Systems Integration designs, implements and manages customised IT solutions through the integration of hardware and software systems. It has four distinct business units, all providing clients with world-class ICT products and services. Local solutions developed by Bytes include SAMRAS, a fully integrated ERP system tailored for local government, IN.sight business software solutions for the financial services market and biometric management software NAVAJO, a non-proprietary device-agnostic template management solution that caters for both Physical and Logical access control. Increasingly, Bytes Systems Integration’s BytesNet division has become a leader in innovative cloud-based solutions to both national and international customers. Global technology leaders represented by Bytes Systems Integration include Teradata, Business Objects, Oracle, FrontRange Solutions, Kronos, Microsoft, MTN, Motorola, Cisco, Network Appliance IBM, Honeywell, Symantec, Wonderware, Aprimo, Tableau, ICCM, SAP, InStep, TrakSYS, OSISoft, OpenText, HP, Juniper, Schneider and HP Autonomy. Block B, Bytes Business Park, 241 Third Road, Halfway Gardens, Midrand T +27 (0)11 205 7000 F +27 (0)11 205 7160 E patrick.hastings@bytes.co.za
www.bytessi.co.za
Two leading communications companies. United by one goal to delight customers. As a global leader in providing device lifecycle services to the wireless and high-tech industries, BrightPoint has been proud to be an official partner of MTN since 2009. We wish MTN continued success today and long into the future.
Device Lifecycle Services. Delivered.
For more information talk to BrightPoint today +27 11 928 8370 Or email us at ZA_Sales@BrightPoint.com
MTN
The results affirm South Africa, and indeed Africa, as being at the cutting edge of and setting global standards in building telecoms and financial services and brands. in which some of the biggest names in world football played in South Africa as Manchester United toured the country as part of their pre-season preparation. In cycling MTN sponsor a team, a host of events and even a range of products. Using targeted branding, MTN get the name out there and give the company a community image which makes people feel involved. One of the biggest sponsorship deals that MTN has put together is with the MTN Lions, formerly the Golden Lions rugby team. The communication company partnered with the professional rugby team in order to raise further awareness of the brand but also to build a base of loyal supporters which will be of benefit both parties. MTN invested heavily in the Lions after striking the deal in March 2011 building a MTN fans village where rugby lovers can come and get closer to the players, get autographs, learn more about rugby and compete to win MTN prizes.
statement from Zuma should go some way towards alleviating the fears of Luke Mckend, Google SA country manager, who said recently: “Access and cost remains the biggest obstacle to internet connectivity, particularly in less developed areas.” As for the mobile communication market, MTN will be happy. The amount of smartphones being used every day is on the up and it has been widely reported that South African’s are happy to browse, shop, call, text and email with their phones. The country has a fantastic app development industry and with a brand like MTN leading the way with flexible packages and innovative services like conference calling and SMS2email customers can feel confident that they are in the hands of an ambitious industry leader. The company itself is looking healthy with results up to June 2012 showing a 17.5% increase in revenue to R66,426 million and group subscribers up by 6.9% to 175,997 million. These figures speak for themselves, this a colossal multi-national organisation but with its commitment to social projects and sponsorship of proudly South African gems like the sports teams mentioned earlier, the telecommunications giant will always be a well-recognised and widely respected brand in its home country. ●
THE FUTURE Although MTN has had great success in South Africa since its inception in 1994 there are still challenges to overcome. The connectivity and service across the country is still being hampered by inland infrastructure, even though South Africa has some the fastest underground and undersea cables it remains behind countries such as Nigeria, Egypt, Morocco and Kenya in terms of broadband usage. With the substantial growth of services such as Skype, Twitter, Facebook and other applications being used for communication, and these applications taking on more responsibility (such as mobile banking through Facebook) , broadband provision is the area of the business that will have to grow. President Zuma said in his State of the Nation Address that rolling out broadband to everyone who needs it by 2020 is a major target and important for economic development and international growth. The
MTN’s vision is to become the leading telecommunications provider for emerging markets. They have a presence in Botswana, Cameroon, Côte d’Ivoire, Nigeria, Republic of Congo (Congo-Brazzaville), Rwanda, South Africa, Swaziland, Uganda, Zambia, Iran, Afghanistan, Benin, Cyprus, Ghana, Guinea Bissau, Guinea Republic, Liberia, Sudan, Syria and Yemen. It looks as though they are well on their way to achieving their vision. Their mission is to speed up the progress of the emerging world by enriching the lives of the people within it. Are they achieving this mission? Get in touch and let us know. @industry_sa www.facebook.com/ECPindustrysa
AUG 12 PAGE 75
COMPANY REPORT
Can experts,social change pioneers. By Tim Hands
over 30 years are not uncommon– a typical shelf life ranges between one and five years and is a key factor in keeping this, the bastion of an era past, pivotal to domestic life even today. The Divfood arm of Nampak’s diverse set of operations can lay claim to being the leading tin can supplier to South Africa’s canned food industry, while at the same time branching into the supply of paint, aerosol and various other metal packaging formats. An ever-present in the industry for over 60 years, it is an accumulation of experience which allows Nampak Divfood to perform its diversified operations throughout South Africa, manufacturing its huge variety of tinplate and aluminium cans in Johannesburg, Durban and Cape Town. The packaging solutions it has spent all this time honing, cater for the personal care, insecticides,confectionery,polishes, industrial and paint markets, and, in testament to its desire to continually strive to improve, perhaps Divfood’s greatest concern remains that optimum balance between high container performance, safety and low price.
Canned food is not a recent innovation; far from it, its principles came about in the early 1800s. As one of the leaders of the industry in South Africa Nampak Divfood is now setting about educating the public around and changing attitudes towards matters ecological, both locally and further afield. Canned food is one of those commodities seemingly immune to the passing of time, paying no attention to the fads and technologies that crop up around it almost daily. A device patented in 1810 by a British merchant, Peter Durand, the canning process in fact came to light following an initiative by the French government seeking a cheap, and most importantly effective, method of keeping amounts of food suitable for consumption by its armies during the Napoleonic Wars. It has been a household staple since its production with aluminium began in 1957, and used to house all manner of produce in varying quantities. Famed for its abilities to preserve food long beyond all reasonable expectations – stories of suitably prepared goods remaining edible for
PAGE 76 AUG 12
NAMPAK DIVFOOD
INDUSTRY-LEADING INNOVATION Delivering on all these three fronts would be but an idealistic dream for many organisations, but across the whole of its comprehensive product range these are facets which have seen Nampak attain its present stance as Africa’s largest packaging company. Combining its large geographic coverage, a world-leading research and development facility and innovation process at the forefront of the industry, Nampak’s customer base comprises multiple industries throughout Africa, manufacturing to the highest commercial and environmental standards in metal, glass, paper and plastic. In February this year, Divfood was able to use its Vanderbijlpark can making plant to showcase its innovative new five-colour Crabtree FastReady printing line, a development witnessed and welcomed by some of the most high-profile customers for which a company could wish to cater; names like Clover, L’Oreal, Reckitt Benkiser, Kraft Foods, Aspen and Tiger Brands were all present to discover how this machinery would be pushing their products even further to the forefront. As a result of its new technology, Nampak DivFood estimates that new design lead times could be reduced by as much as Six weeks in certain cases. This exposition showcased succinctly Divfood’s continual forays into the realms of new printing technology; a
chance for its customers to share in where the company will be heading. Nampak, as an entity comprising both Divfood and its steel beverage can production company Bevcan, as well as the numerous other packaging solutions it is equipped to deliver, has evidently managed to combine those three key aims and achieve a capacity to deliver which has led it to the top spot among Africa’s packaging heavyweights. It is no longer, however, enough to merely be able to strike a balance even so fine as that demonstrated by Nampak between optimum working conditions and a highperforming end product available at the most competitive price. Now more than ever companies, especially those involved in the industrial sector, are continually being watched, evaluated, and expected to deliver on an environmental front, both pledging and acting upon points that will enable the sustainable running of their business in years to come, while showing a social conscience to match these ecological concerns.
TREKKING FOR TRASH For Nampak, this is a characteristic that comes almost as second nature, with sustainability a pivotal aspect of its operations; it sums up its goal as “aiming year on year for greater, pertinent detail on material economic social and
AUG 12 PAGE 77
COMPANY REPORT
“ Combining its large geographic coverage, a world-leading research and development facility and innovation process” environmental indicators.” In keeping with these nonfinancial concerns is the way in which its operations are carried out in such a way that its existing manufacturing footprint is developed in a sustainable manner, a manner which marries up neatly with Nampak’s proven ability to deliver. Having taken such care of its own ecological concerns, it would be understandable if this was where Nampak set the boundary of its attention to environmental issues, focussing solely on ensuring that its own operations be the most sustainable possible – an entirely honourable approach in itself. Not a company for whom this would ever be sufficient, however, Nampak’s ecological conscience spreads further, to individuals wishing themselves to alter the nation’s environmental plight. Alex Bouwer, sales and marketing manager of Nampak, describes the “social change adventurers” that Nampak Bevcan, Divfood, and Collect-a-Can are sponsoring to enable the accomplishment of the ‘Trekking for Trash’ campaign due to commence in October of this year. It is some feat that Camilla Howard and Michael Barreta will be undertaking; their route, by foot, will encompass the entire coastline of
PAGE 78 AUG 12
South Africa, from the Namibian boarder at Alexander Bay all the way along to Kosi Bay on the Mozambique boarder. “Over six to seven months they’ll be walking at least 30 kilometres a day to cover that coastline,” details Bouwer. “All along they’ll be raising awareness about litter, which is something that has emerged as quite a serious problem in South Africa, and is an area where we need to educate people about the importance of not just discarding things on the ground, or wherever you feel like throwing it.” The trekkers will realise this through visits to schools and municipalities along the way, not only to target those young people for whom this will perhaps be the greatest issue facing their futures, but also in an attempt to alter fundamental aspects of environmental approaches and cleanup programs currently implemented in these areas. Divfood customers in particular will be a focus for the pair, explains Bouwer, “just to make them aware and try to get them involved in the initiative.” To be able to incorporate some of its own clients, such customers as fisheries and beverage can consumers, into the massive 3000km trek is a real coup for Divfood, and allows this drive to retain a genuine sense of the company’s own environmental preoccupations. It is such initiatives as these that tie in perfectly to Divfood’s
NAMPAK DIVFOOD
work; the materials that compose those celebrated cans, happen to be the most recycled form of packaging in South Africa, which shows in part why Baretta and Howard elected Nampak as their sponsor of choice. “We want to lead the way and set an example for the rest of the packaging manufacturers,” explains Ms Bouwer; clearly this was the ideal opportunity for such a company as Divfood to showcase its ecological intent, and get behind individuals showing a similar verve towards the issue. “It’s something we’re passionate about as well, cleaning up South Africa, especially as they’re going to be raising awareness about all sorts of trash, not just metal. We are sponsoring them to do this walk, and will be using Collecta-Can as a facility to collect further funds to support the informal collectors who are collecting trash to recycle. In this way we’ll be providing anything we can to make their job a bit easier; protective clothing, bicycles, trolleys for collection.”
GREEN EXPO Acutely aware of its social responsibility, some of Nampak’s most important work in defining its environmental responsibility is that which it demonstrates in its own activity, exemplified in recent times by its support of Canvironment Week, a global initiative pioneered in South
Africa by the company. This newly formed partnership lends further weight to Nampak’s and Collect-a-Can’s ability to share ideas on how best to preserve the environments in which we all operate, whether locally or on the more global scale the affiliation affords. In a similar vein is the Green Expo Ms Bouwer describes, set to take place in both Johannesburg and Cape Town later this year: “It’s an opportunity to expose green, eco-friendly products and services in South Africa. The whole Expo is focussing on climate change, carbon footprint, energy and water saving and, of course, recycling and waste reduction. [Divfood] will be one of the biggest exhibitors, and we’ll be doing so through a variety of speakers, of fashion shows, with the aim of celebrating metal as the most sustainable form of packaging the world over.” Again an initiative supported by all three of Nampak’s principle business arms, it is almost as if, having conquered the packaging world in South Africa, Nampak is throwing its considerable weight behind changing fundamental attitudes to climate change. It is a commendable example, and if more can be persuaded to follow, these could be the beginnings of a transformation in environmental practices shared among the diverse sectors of industry in South Africa and beyond.rewards from this. ●
Nampak Divfood – Trekking for Trash Inspired following a talk by Cape Town’s extreme adventurer David Grier, Michael Barreta plunged into the lifechanging decision to down tools from his regular life spanning marketing, media and public relations, and apply his creative and pragmatic energies into this ecological cause, deemed worthy of the full backing of the esteemed Nampak Divfood. Along the very same route mapped out by Grier himself, rather than run a marathon each day in the style of the project’s forebear, self-styled “social-change adventurers” Barreta and his partner Camilla Howard will undertake, on foot, the 3000km stretch between Alexander Bay and Kosi Bay, on the Mozambican border, in order to both collect and recycle the ensuing litter, and engage with and educate communities along the way. “The intention of this expedition is to get people to notice the amount of litter in our country and to create an awareness of the impact it has on the environment, so that they will ultimately stop littering,” states Barreta, and with the evident force of the duo’s passion underpinning this drive such a monolithic task begins to look very achievable. For Barreta the ubiquitous litter along the coastline represents so much more than a mere blight on the landscape; “If an area is heavily littered it can lead to the ‘broken window’ effect which engenders more dumping, more rapid degradation and other crimes.” Sharing his unequivocal view that “reducing the levels of litter in South Africa can make our country an even better place to live in,” is Camilla Howard, purveyor of bespoke catering company Chez Gourmet. “Michael has always been a do-er and was thinking of ways to make a real difference. His top priority and main passion is litter, and it is something close to my heart too. I jumped at the chance to join him.” The pair are under no illusion that the challenge they are on the cusp of facing will rival even that of climbing Kilimanjaro barefoot, Howard’s recent endeavour, she is able to enunciate the real force that will push them through the barriers to come; “I am looking forward to the challenge. It’s not going to be easy but the thought of all the good we are doing and the people we will reach with our important message makes it worth every step.”
AUG 12 PAGE 79
THE VALSPAR CORPORATION Caption
The Valspar Corporation The Valspar Corporation is a global leader in the paint and coatings industry. For over 200 years, Valspar has been dedicated to bringing customers the latest innovative technologies, the finest quality and the best service and regulatory support. With nearly US$4 billion in sales Valspar is the sixth largest paint and coatings company in the world. Headquartered in Minneapolis, Minnesota, Valspar has more than 10,000 employees in over 25 countries. Valspar’s diverse array of products makes it one of the most complete paint and coatings suppliers anywhere. This product line includes: Consumer “Do-it-yourself” Paints, Packaging Coatings for aerosol, tube & monobloc, beverage, food, drum, pail and additives for plastic containers; Wood Coatings; Industrial Coatings for sheet metal, appliances, floors, windows and original equipment manufacturers; Automotive and Refinish Systems; and Coatings Intermediates. Valspar South Africa has the single largest plant and development laboratory in sub-Saharan Africa dedicated to the manufacture of high quality coatings for all aspects of
the metal packaging market. Together with its experienced field support staff, this makes it the number one choice for packaging coatings in the market. Valspar’s theme, “If it matters, we’re on it”, conveys how it does business and the importance of the quality of its product line. Valspar’s mission is to be the best coatings company in the world as judged by its customers, shareholders, employees, suppliers and the communities in which it operates. Operating with a sense of urgency and always with integrity, Valspar responds to its constituent’s needs and helps them to succeed. www.valsparpackaging.com The Valspar (South Africa) Corporation (Pty) Ltd PO Box 13052 Jacobs Kwazulu Natal 4026 South Africa Sales: T +27 (0)31 459 8400
AUG 12 PAGE 81
COMPANY REPORT
Elect the best Crossroads Distribution Logistics Solutions are one of South Africa’s biggest logistics businesses. IndustrySA takes a look at some of their current contracts‌ By Joe Forshaw
Crossroads Distribution (Pty) Ltd is one of the largest third party logistics companies in South Africa. The business was founded in 1997 after the transport division of Trencor (holding company listed on JSE) was bought out by management and Black Empowerment partner. The company is now a subsidiary of Community Investment Holdings (Pty) Ltd, a company with investments in a range of industries across South Africa and Sub-Saharan Africa. The range of services offered by Crossroads is vast and includes: transport management, dedicated
PAGE 82 AUG 12
contract carriage, short haul, less-than-truck-load distribution, courier/express parcel, shared and dedicated warehousing, broking, mining supplies, freight distribution, import distribution, healthcare solutions and courier/line-haul. One of the more relevant developments for the company in recent times was the award of a five year contract with the South African Post Office, something which it can employ all divisions of the business to assist with. Subsidiaries of the Crossroads Distribution business include: Crosscape Express, Crosspharm, Jowells Transport/Stuarts Transport, Jowells Motors,
CROSSROADS
SkyNet World Express and Zip Express. The company’s history goes back to the 1930’s and Namaqualand in the Northern Cape when Jowells Transport was the business in control. Crossroads distribution itself was founded in 1997 as mentioned above. It is now one of the country’s most impressive BBBEE level three certified distribution networks with 3000 employees and 35 hubs nationwide. The logistics industry is one that has felt the effect of the global recession perhaps more than others but it seems that during the time that business was suffering all over the world Crossroads took the time to re-structure
and re-organise business activities. The organisation now consists of two main operating divisions: Crossroads Distribution Logistics Solutions and SkyNet Worldwide Express. The other brands now operate under these two recognised names. We hear constantly of the importance of acquiring new business, especially in the business of supply chain solutions. One of the main things that contractors look for is safety and quality credentials. Of course, Crossroads is well qualified having OHSAS (Occupational Health and Safety System) 18001 accreditation, ISO:14001 environment accreditation
AUG 12 PAGE 83
COMPANY REPORT and SABS IS0:9001 quality certifications ensuring compliance to the highest global standards.
NEW BUSINESS If you think logistics is about driving a truck from Johannesburg to Cape Town then you are sorely mistaken. There are so many different factors to take into account and by considering them all Crossroads has managed to become an expert in supply chain solutions. This has been demonstrated in the long list of new and repeat business that the company is now dealing with. Recently Crossroads entered into a contract with Chevron for the transportation of Jet A-1 fuel from the refinery in Milnerton to Cape Town International Airport. The contract requires approximately 260 million litres of jet fuel to be transported every year, utilising state-of-the-art vehicles and a team of highly-trained drivers. “Our standards in the fuel sector are second to none,” said Jeanne Kruger, Contract Manager for Fuel Distribution at Crossroads. “Our safety, driver training, and track record in previous contracts with Chevron all played a big role in winning the tender,” It is absolutely imperative that all drivers transporting fuel be accredited with Dangerous Goods training and that their trucks be equipped with the right technology. And as jet fuel demand is seasonal, it is critical to provide a flexible solution to cater to fluctuating demand between summer and winter. One of our other feature companies this month, Anglo American, has been doing business with Crossroads for over 20 years. This relationship is set to continue as after careful consideration, mindful of costing, lead times and reliability, Anglo re-awarded their contract to Crossroads. Crossroads CEO Gerhard van der Horst said, “Both mining companies and suppliers are under growing pressure to cut costs, drive up service levels and build modern supply chains that react swiftly to changes in demand, geography and market prices.” A key part of the plan between Anglo American and Crossroads, and something which made up a great saving, was Anglo American’s agreement to allow Crossroads to take over what was previously a De Beers distribution centre, and to open its use to not only other Anglo American controlled groups in Anglo Platinum and Kumba Iron Ore, but also to non-Anglo American mines. “We had to consider how logistics costs could be cut to optimum levels if Crossroads was to be entrusted with more of Anglo’s mining consolidation work, and what we
PAGE 84 AUG 12
have come up with will deliver that to our primary client, Anglo American,” said van der Horst. He continued to say: “Combining our capabilities, our people, our network and facilities enables us to offer both mining companies and suppliers a holistic supply chain solution that generates value and positively impact on the bottom line of all participants, and of the local communities.” SkyNet Worldwide Express has been a major part of new business development and boasts successes of its own. SkyNet has been the courier behind election logistics since the birth of the new South Africa in 1994 and was re-awarded the IEC (Independent Electoral Commission) Warehousing and Distribution contract through a conventional open-tender process. The courier won the tender due to its extensive national infrastructure, its proven track record and of course its value offering. There are an estimated 26 million eligible voters in South Africa living in 23,000 different voting districts with 260 municipal electoral offices. During highpeak periods, like the national elections, IEC logistics
CROSSROADS
“ Our standards in the fuel sector are second to none”
demands thousands of tonnes of voting materials and months of man-hours and in some instances, it also involves overseas voting. This is a mammoth task for any courier where failure can have a detrimental impact on the country. “We are really happy to be able to serve the country again through the IEC tender. Our robust network and vast infrastructure, is a perfect fit to their needs,” said Raymond Ngubane, Project Manager at SkyNet. He added: “We have never let the IEC down; our work on the elections has always been performed efficiently and without incident.” This fantastic work was probably a driver behind the decision by Statistics South Africa to award SkyNet with the contract to handle the 2011 Census. “We are proud to have worked with Stats SA on the Census. We really believe in its underlying goals and their trust in us is based on our successful handling of national projects of this magnitude in the past through the distribution and collection of items for the elections with the IEC and the collection and distribution of exam papers for UNISA,” said SkyNet.
As the South African economy grows business is moving faster and faster. Crossroads has a largescale local footprint but globally the business have 1115 branches through over 200 gateway cities. After implementing a brilliant new warehouse management system in 2009 the company is looking to further strengthen its position in the market. Abé Uys, chief operation officer for Crossroads has said there is nothing else in South Africa like the warehouse management system that the company uses and technology helps give them an advantage. The health and safety system in place leaves nothing to chance. The Safety, Health, Environment and Quality (SHEQ) system is constantly reviewed and renewed and because of this potential clients feel confident when contracting Crossroads. As the fast moving world of supply chain management will not slow down for anyone, the Crossroads business has kept the right people and technology in place to ensure they stay ahead – something which they have definitely achieved. ●
AUG 12 PAGE 85
The Commercial Vehicle Division of Sandown Motor Holdings represents the most recognized truck brands in the world - Mercedes-Benz, Freightliner, Mitsubishi and FUSO. At the heart of Sandown Motor Holdings’ evolution, since their establishment in 1982, lies Daimler AG who bought a majority stake in the dealer group in June 2001. Apart from its highly respected vehicle brands, Daimler AG also brings its technological expertise into the service aspect of the business. The Commercial Vehicle Division is a flexible organization with a deep understanding of the trucking industry, offering customers the full spectrum of products and support services. These include transport consultancy, parts operations, service operations, body repair centres, fleet services and a fully fledged used commercial vehicle operation. Sandown’s Commercial Vehicle Division capitalizes on the equity that the Sandown brand conveys, including coverage in Gauteng and Cape Town, uniform standards at all dealerships, an improved ability to service large national fleets and enhanced value and service quality through greater focus on core competencies and dedication to the trucking business.
www.sandown.co.za/commercial allant@sandown.co.za
Cnr Bridge & Isotope Streets, Triangle Farm, Stikland, Bellville, Cape Town. Cape Town T 021 948 0684 Centurion T 012 621 7400 Roodepoort T 011 611 2100
SANDOWN COMMERCIAL VEHICLES
A deep understanding of trucking The commercial vehicle division of Sandown Motor Holdings is an industry leader in the supply and maintenance of trucking products. From a one off purchase of a used vehicle to the service of a large national fleet, Sandown Commercial Vehicles has it covered. Sandown Motor Holdings (Pty) Ltd started trading in 1982 after being awarded the franchise for Mercedes-Benz in Sandton. In 1989 the group expanded into Pretoria and was then purchased by Malbak Motor Holdings. Under Malbak the company grew fast and acquired assets in Cape Town and Stellenbosch. In 1997 the company was re-acquired from Malbak Motor Holdings by the management of Sandown Motor Holdings and in 1998 the company was awarded the Mercedes-Benz franchise for Worcester. In 1999 Johannesburg, Pretoria, Cape Town and Worcester were awarded the franchise for Chrysler products and eventually, in 2001, Mitsubishi products. Daimler AG acquired a majority interest in 2001, while Roy McAllister, group managing director retained a significant stake and management control. The growth of the company has continued over the past 12 years with the headquarters in Bryanston leading the charge. The commercial vehicle division has been at the heart of that growth since its establishment in 1982. It represents the biggest and best truck brands in the world including Mercedes-Benz, Freightliner, FUSO and Mitsubishi. In 2002 Daimler AG implemented a new network strategy and acquired various dealerships across the country with the goal of improving representation. Some of the dealerships acquired in this stage of growth were commercial outlets previously owned by the McCarthy Group. Many services are offered including transport consultancy, parts operations, service operations, body repair centres, fleet services and a fully-fledged used
“ Sandown Commercial Vehicles represents the biggest and best truck brands in the world including Mercedes-Benz, Freightliner, FUSO and Mitsubishi.” commercial vehicle operation. Accompany this with the deep understanding of the trucking industry held by Sandown and their dedication to the trucking business and you get an expertise which is hard to match. The Sandown Motor Holdings group is a level two BBBEE contributor and a trusted employer and dealer. Sandown’s Commercial Vehicle Division capitalizes on the equity that the Sandown brand conveys, including coverage in Gauteng and Cape Town, uniform standards at all dealerships, an improved ability to service large national fleets and enhanced value and service quality through greater focus on core competencies. Contact Sandown at: Cape Town – 021 948 0684, Centurion – 012 621 7400, Roodepoort – 011 611 2100 allant@sandown.co.za ●
AUG 12 PAGE 87
COMPANY REPORT
Innovating a brighter energy future. By Tim Hands
Shell is one of the world’s foremost energy organisations. As we move into an era with a mass emphasis on ‘green’ energy and renewable innovations things at Shell are constantly changing. IndustrySA reviews the business and takes a look at what is new from the South African arm of this industry powerhouse.
To say that ours is an age of progression would be to drastically understate the extent of the developments in evidence at every turn in modern society. More than ever before is it imperative to be at the forefront of any given field, with a continual emphasis placed on bettering the efforts of the nearest competitor. It is this refusal to allow even the most simple of apparatuses or functions to remain at a standstill that continues to breed new innovations in all facets of life, with companies and individuals having to vie constantly for the most attractive and pioneering ways of delivering the services desired by the populace. The most recent inventions are perhaps those whose amelioration has been the quickest, being as they are undeniably those most universally sought and needed: perhaps best exemplified by the evolution of communications and the ever-growing number of ways in which humans can interact on a global scale, facilitated by a range of devices continually billed as more innovative, or effective, than the last, now obsolete version. Twinned with this period of inexorable advancement is the rising global population and the steadily increasing
PAGE 88 AUG 12
number moving out of poverty and gaining access to modern energy. Just one result of the universally predicted sustained economic prosperity will be a vast rise in the number of households globally, predicted to reach the 2.8 billion mark within the next 30 years and representing a near-doubling of today’s figure. Fuelled largely by economic growth and development, this increase in residences and subsequent greater energy consumption looks set to be a universal trend, with current energy usage patterns foreshadowing a regular steady climb of just over two percent in the coming years. Energy indubitably remains vital to the daily lives of people the world over; without it the production of food would be rendered impossible, transport would grind to a fatal standstill, and those increasingly vital communication channels would be instantly prevented from providing their much-needed functions.
POWERING THE WORLD As one of the absolute dominant providers of energy in the world today, therefore, it is inescapable that this predicted exponential growth in both household
SHELL SOUTH AFRICA
“ Just one result of economic prosperity will be a vast rise in the number of households globally” and commercial energy usage must be matched by an ability to adapt and progress in line with the increased consumption, and continue to be in the position to fulfil the demands present in the growing world. Shell South Africa outlines two main facets through which it intends to achieve just this, both through making the most of the oil and gas resources currently at its disposal, and then perhaps most crucially, in developing innovative and advanced technologies in order to tap the potential of new sources of energy. Such a two-pronged vision is demonstrative of the innovation necessary for any such company to deliver not only in the immediate term, but equally to continue to lead the way as new technologies pave the way toward new, more ecologically viable
resources. Shell is today a worldwide group comprising petrochemical and energy companies, with its global headquarters in the Hague, capital city of South Holland in the Netherlands. Its parent company, The Royal Dutch Shell Group, was created in February 1907 via the merging of both the Royal Dutch Petroleum Company and the United Kingdom-based “Shell” Transport and Trading Company Ltd. The two in fact began as rivals in the very nascent days of the late 19th century, with Marcus Samuel the initial force behind the formation of the “Shell” Transport and Trading Company Ltd in 1897. The very name of the future company derived from Samuel’s foray into the importing and exporting business, with his taking over the helm of his father’s business in 1878 and overseeing its diverse operations, an arm of which included the import of Oriental shells. The formation of the 1897 company followed a starting point including the handling of kerosene consignments, leading to the operation of tankers bound for the Far East, and culminating in the
AUG 12 PAGE 89
Companies today realise that to remain competitive they need to streamline their business and organisational processes in order to concentrate on their core activities. The trend to outsource offsite archive storage has been one of the biggest fundamental changes in the business process in the last decade. The Document Warehouse understands this and provides our customers the offsite document storage solution and various space-saving filing solutions and records management software for tracking their files onsite or offsite. In a broader sense The Document Warehouse (TDW) offers warehousing space to store documents. In a narrower sense, offsite document storage includes services such as indexing, packaging, transportation, storage, retrieval of documents, scanning and mailroom services. There are additional services such as onsite management of documents, providing the software to assist in the process and also providing staff. In addition, TDW offer training and consulting services to organisations.
www.tdw.co.za
THE DOCUMENT WAREHOUSE
The art of filing From creation to destruction, The Document Warehouse can handle all of your record management needs and train you to effectively manage your own filing to make your business that little bit easier to govern. By Joe Forshaw
Everyone knows the hassle that comes from filing and organising company documents and paperwork; days and weeks can be spent trying to make sense of unorganised piles of receipts, tax forms, certificates and other necessary documents. The Document Warehouse is a company that can help with this problem. They realise the importance of good records management and are experts when it comes to handling company records and training businesses on how to more effectively deal with their documents. The Document Warehouse business began in 2000 as an offsite document storage and record management company in Johannesburg. Since then it has grown tremendously now with branches throughout Southern Africa and Australia, England, Ghana, Botswana and more opening soon. It also has a highly rated and accredited training programme in records management. Since the exception of the training programme in 2000 more than 5000 delegates have been trained. Virginia Hendricks, training and consultant manager, explains. “The training programme is specific to filing, records management, disposal and the archiving of records. Anybody in any organisation can be trained to set up a filing system where records can be found quickly and easily. Private and public sector individuals are constantly being trained. The training will not only equip delegates to manage their own organisation records but they will understand why it
is important to keep records according to the Acts. In fact everything you need to know about filing will be explained including how to develop a classification system for an organisation so that they can retrieve documents quickly and easily.” The Document Warehouse trains people on how to manage records right from creation through to disposal. A large percentage of their customers come from the public sector but there is strong customer base in the private sector, something which they are looking to grow. “We are fully accredited with the Services SETA (Sector Education and Training Authority) and SAQA (South African Qualifications Authority). Learners receive a certificate of competence on successful completion of portfolios of evidence. We are constantly developing further courses in disposal, mailroom management, policy design and other areas,” says Hendricks. The Document Warehouse is passionate about records management and it is because of effective practices that we understand the history of our companies and our country. There is also a large amount of legislation that forces the storage of some documents. “The new companies act says you have to keep financial records for a minimum of seven years,” says Hendricks, An effective record management system can streamline your business and eliminate extra work arising from inadequate filing. The Document Warehouse can help you develop and maintain a system – vital in any modern business. ●
“ The training programme is specific to filing, records management, disposal and the archiving of records”
AUG 12 PAGE 91
COMPANY REPORT
PAGE 92 AUG 12
SHELL SOUTH AFRICA
“ Shell South Africa is charged with finding increasingly innovative ways to ensure its provisions are in line with such burgeoning requirements”
establishment in 1896 of oil wells and refineries in the Borneo. Knighted only a year after the inception of this company catering for his extensive interests in the oil industry, Samuel spent the next decade expanding his new creation, with key petroleum contracts secured in such valuable locations as Russia, Romania, and Texas, among others. The operations of the Royal Dutch Company for Exploitation of Oil Wells in the Dutch Indies were plotted along a very similar timeline, developed by a combination of Dutch bankers, businessmen, and former colonial administrators in 1890, and with the development of its first pipeline and refinery in Sumatra found itself in very close quarters with Samuel’s rival company. It was the leadership and vision of Hendrik W.A. Deterding in the years following 1896 that saw the construction of the tankers and storage facilities which, along with its newly-created sales organization, proved key to the success enjoyed by the Dutch pioneers in the ensuing years. The precursor to the groups’ eventual merger came about in 1903, with the integration of their own individual operations with regards to their East Indies production and Far East sales processes, a merger made more complete in 1907 and culminating in the Royal Dutch/Shell Group, initially headed up by Deterding in the position of its general managing director.
SLICK STRATEGY Shell’s strategy of delivering sustainable growth, and providing competitive returns to shareholders, alongside its commitment to developing and enhancing its modes of working, has seen it extend its operations to occupy over 80 countries, and become responsible for the employment of more than 90,000 personnel. The extent of its occupation and this wealth of combined experience helps to bear impressive fruits, with the group producing in 2011 3.2 million barrels of gas and oil each day. Its worldwide presence is bolstered by the some 43,000 Shell gas stations in operation worldwide, while revenue last year of $470.2 billion tells in part the story of a century of progression and advancement in the industry. Shell South Africa is cognisant of energy’s crucial role in daily life globally, helping to facilitate those various commodities we take all too easily as mere givens. As the numbers of consumers with direct access to this modern energy grows as a result of the emergence from poverty of an expanding number of citizens, Shell will clearly have an more vital role to play in keeping this energy in abundance, not only for today’s consumers but also those forecast to benefit from its supply. Its main businesses
AUG 12 PAGE 93
COMPANY REPORT
outline explicitly its dual focusses on both the energy needs of the present and the more pressing concern of future innovations, with two of its principal approaches labelled Upstream and Downstream. The former caters for the exploration for and extraction of crude oil and natural gas, twinned with the latter’s emphasis on supplying and trading crude worldwide, as well as producing petrochemicals for its industrial customer base and marketing a diverse range of products. The third main arm of its business concerns is branded Projects and Technology, and it is this which, as Shell states, “drives the research and innovation to create technology solutions,” bringing to fruition the methods and projects which will enable Shell to continue harnessing the energy needed to meet the expectations of its emergent customers. In meeting the rising demand for energy around the world, Shell South Africa is charged with finding increasingly innovative ways to ensure its provisions are in line with such burgeoning requirements. One of the most valuable of these resources is the already widelytraded Natural Gas that has been a staple for Shell for
PAGE 94 AUG 12
more than 35 years. Developing this technology that has for so long been used in converting the gas into liquid products used for heating fuel, transport fuel and lubricants continues to be integral to opening up new resources of this, the cleanest-burning fossil fuel, a method that is now so advanced that Shell is able to draw high volumes of natural gases that are trapped in rock pores sometimes 100 times tighter than the width of a human hair. Also at the forefront of the conversion market, Shell has commenced the building of Prelude FLNG, the world’s first giant floating facility to turn gas to liquid at sea and enable far more efficient shipment to customers. Sticking with sea-based exploits has been a richly profitable area for Shell South Africa, with its deep water explorations showcasing yet further its desire, and more importantly ability, to push the boundaries of what is reckoned technically possible and safely achievable. Using advanced technology has allowed Shell to overcome the near-freezing temperatures kilometres below the sea’s surface to separate and boost oil to the surface with large electrical pumps, as seen at its record-breaking
SHELL SOUTH AFRICA New Orleans platform, Na Kika. Yet further afield, Shell is tackling the vast resources of oil and natural gas to be found in the Arctic. Another location in which it profits from the experience of decades of operations, Shell South Africa is once again combining its advanced technologies with the expert knowledge at its disposal in order to balance the economic, environmental and social challenges the locale inadvertently brings.
OFF-SHORE EXPLORATION A significant coup for Shell South Africa is its recent acquisition of the rights to the exploration of the Orange Basin Deep Water area off the north-west coast of South Africa. An area whose sheer scale has meant only limited exploration activity has been able to take place until now, its 37,000 square kilometres is located up to 350 kilometres offshore, while the depths of up to 3,500 metres will yet again require every modicum of Shell South Africa’s research competences to achieve the previously unfeasible. It is an opportunity “ideally suited to the application of Shell’s proven deep-water technology,” as states Shell South Africa’s Chairman & Country General Manager: Commercial, Bonang Mohale, and will unlock crucial development opportunities for the group. In keeping with its commitment to sustainable development, as part of the Mineral and Petroleum Resources development framework in South Africa Shell has pledged to make a contribution to the Upstream Training Trust, pay its annual exploration fees to Petroleum Agency SA and provide a financial provision for environmental rehabilitation in the exploration area. The initial stages of the rights will see Shell focus on the evaluation of the valuable basin, conducting the requisite studies in the hope of discovering hydrocarbons, and pursuing these further should they prove to be present within. The deep-water portion of the Orange Basin is perhaps that with the most promise for massive benefits to the country and its people, containing as it does source rocks which have the potential for significant commercial oil and gas discoveries. Again largely untapped, this is a further area of possibility which will be brought to light in the coming years by the human ingenuity, innovation and technology at Shell South Africa’s disposal. Around ten percent of Shell’s 45,000 technical and engineering staff worldwide is charged with conducting research and development at the group’s technology centres, spread across 11 countries. Twinned with Shell’s global network of technical centres, it is a vital aspect in providing the innovation needed in meeting the future energy challenges Shell is tackling daily. What remains
an unswerving aspect of Shell’s development activity is its dedication that this knowledge and creativity be applied in a “socially and environmentally responsible way,” using ingenuity, equipment and invention to power lives in the years ahead, crucially, in ways which are of least harm to the environment. As of January 2006 the governmentimplemented Clean Fuels Programme has changed and further improved all Shell fuels in Southern Africa. Key to this initiative has been the lowering of sulphur levels in diesel, a change made more profound by the phasing out of leaded fuel, a direction backed by the withdrawal by Shell of leaded fuel in over 50 of its worldwide markets and enhanced with the launch of some brand new fuels in specific areas of the Shell network. While fossil fuels will inevitably meet the bulk of the growing energy demand, Shell is nonetheless helping to secure a sustainable energy future through focussing on alternative fuels and energy efficiency. Forming a significant part of this is a solution designed to deal largely with the issue raised by the expected tripling in the number of cars in operation globally by 2050. Most of these vehicles will run, as is the norm today, on petrol and diesel, but Shell’s plan to blend these with the more ecological biofuels offers an effective, commercially feasible way of reducing emissions from road transport over the coming years. Its Raizen venture with Brazilian firm Cosan produces ethanol from Brazilian sugar cane, the lowest carbon biofuel commercially available and one which can reduce the carbon dioxide emissions associated with petrol by up to 70 percent. As with all its operations, the production of biofuel is undertaken with an eye strictly on the environmental and social challenges this throws up, with conservation and land management key factors the group has addressed. Its collaborative partnership with the International Union for Conservation of Nature (IUCN) is a reciprocal one, with the IUCN’s experience informing of the risks and opportunities pertaining to ecosystem conservation in sourcing biofuels, while Shell is able to use its status as one of the world’s largest biofuels distributors to afford the Union opportunities to influence global markets and promote the issue of sustainable production processes. With a future of rising energy demand it would be easy to throw up all manner of risks and scathing theories, but with Shell’s innovation and advanced technology combined with new ways of operating that best manage the environmental impact of its contributions to meeting the ever-rising demand, Shell looks set to deliver the sustainable future at the core of its commitment to powering daily lives globally. ●
AUG 12 PAGE 95
ZINCHEM
The largest processor of zinc chemicals and metals in Africa Zinchem is a division of the Zimco Group, South Africa’s leading producer of industrial and base minerals, a major producer and supplier of zinc, lead, aluminium metal and alloys, related chemicals and engineering plastics. Zinchem is the zinc metal recycler division of the Zimco Group. The Zimco Group was formed in 1972, then known as Zimro, and makes us part of the Eco-Bat PLC international group of companies. Companies in the Eco-Bat Group recycle lead, zinc, aluminium and polypropylene scrap/residues in plants located in Europe, South Africa and the USA. In 1946 a company named Union Oxide Proprietary Limited was formed, with influence from the Anglo American Corporation, with the purpose of manufacturing zinc dust for use in the mining industry. In 1948 the company changed its name to Zinc Products Ltd and soon after Zinchem Ltd took control and continued the operations of the company. The company is steeped in history and has experience and expertise that come second to none. The Zinchem product range includes: Zinc dust, agricultural salts (multi mikro and zinc sulphates), zinc oxide, zinc alloys and zinc metals. While the company started out serving the mining industry it has diversified over the years and you will now find Zinchem products in the paint, fertiliser, rubber, animal feed, chemical and metallurgical industries. The company is based in Benoni just, outside Johannesburg supplies the domestic and international markets. The company is always looking to grow and penetrate new markets and it has managed to do just that, recently having zinc dust approved by the Indian, North African, Middle
Eastern and some European markets. Through research and development Zinchem look to constantly improve their products and offer their clients more than just service excellence. Cost-effective products and innovative hedging options help to add both technical and commercial value to a client’s portfolio. They also offer confidence and peace of mind, knowing you will be dealing with the largest processor of zinc chemicals and metals in Africa and an ISO 9002, ISO 9001:2008, ISO14001:2004 and OHSAS18001:2007 accredited company. The zinc dust range produced for the paint industry and the zinc sulphates and multi mikro for the fertiliser industry are offerings which Zinchem are particularly proud of. A new dust plant has state of the art technology and can produce a very pure dust from secondary material and the multi mikros are newly developed, made up of a combination of six or less of the following micronutrients: zinc, copper, manganese, iron, boron and molybdenum in dry form and are crop specific for both soil and foliar (leaf) applications. Zinchem is committed to an environmental awareness programme which includes the reduction of emissions and the sale of all of its by-products. Investments in new technology to keep the business competitive have also resulted in more energy efficiency. The Zimco Group is a R2 billion a year business and it is through innovative products, in-depth research and development and a focus on customer needs that there is no doubt the group will grow and grow. ●
“ You will now find Zinchem products in the paint, fertiliser, rubber, animal feed, chemical and metallurgical industries ”
AUG 12 PAGE 97
INDUSTRY RECOMMENDED
This is the first instalment of our Industry Recommended directory, a list of companies across a range of industry sectors over SA.
YOUR INDUSTRY, THEIR FUTURE, OUR SOUTH AFRICA AUTOMOTIVE SANDOWN MOTOR HOLDINGS Group of automotive dealerships selling new and used vehicles across Gauteng & the Western Cape. +27 21 948 0684 www.sandown.co.za CHEMICALS ZINCHEM The largest processor of Zinc chemicals in Africa, part of the Zimco Group. +27 11 746 5000 www.zinchem.co.za COATINGS VALSPAR The only major coating manufacturer globally that focuses solely on coatings and inks. +27 11 794 5800 www.valspareurope.com COMMUNICATIONS MTN Multi-national cellular network provider operating across the African continent +27 11 882 9347 www.mtn.co.za
PAGE 98 AUG 12
BRIGHTPOINT AFRICA Global leader in wireless device lifecycle services providing a full range of solutions across the industry. +27 11 928 8370 www.brightpoint.com
FRUIT FRUITONE A true pioneer in the South African citrus cultivation and export market. +27 21 883 3447 www.fruitone.com
DAIRY FAIR CAPE DAIRIES Family owned dairy farming operation with an innovative range of eco-friendly milk. +27 21 972 1973 www.faircape.com
LOGISTICS CONCARGO A logistics service provider handling transportation services
DOCUMENT SOLUTIONS THE DOCUMENT WAREHOUSE Offering onsite and offsite document management solutions across the country. +27 11 298 0700 www.thedocumentwarehouse.com ENERGY SHELL SOUTH AFRICA Global group of energy and petrochemical companies. +27 11 996 7000 www.shell.com FENCING TESA FENCING Specialists in fabrication manufacturing and perimeter fencing. +27 21 551 2955 www.tesafencing.com
INDUSTRY RECOMMENDED and supply chain solutions throughout South Africa and Southern Africa. +27 21 930 9160 www.concargo.com CROSSROADS Securing express delivery to over 200 gateway cities worldwide as well as over 450 towns daily within Southern Africa. www.skynet.co.za www.crossroads.co.za DHL Logistics leaders offering a range of solutions for managing letters, goods and information. www.dhl.co.za MINING ANGLO AMERICAN One of the world’s largest mining companies. With 76,000 permanent employees and 24,240 contractors in South Africa,the country’s largest private sector employer. +27 11 638 9111 www.angloamerican.co.za PACKAGING ASTRAPAK A focused group of companies specialising in the production and
supply of plastic packaging. +27 11 615 8011 www.astrapak.co.za NAMPAK DIVFOOD The leading tin can supplier to the canned food industry in South Africa with a huge green focus. +27 11 519 7900 www.nampak.com/Metals-DivFood PROPERTY MANAGEMENT JHI Property development, leasing, sales and management group in South Africa. +27 11 911 8000 www.jhi.co.za RISK MANAGEMENT LATERAL UNISON A licensed financial services provider offering a comprehensive and innovative range of products and services for individuals, companies and municipalities www.lateralunison.co.za SAFETY HIGH ACCESS Established in 2003 and has become a trusted name in the Working at Height Industry
across South Africa and neighbouring territories. +27 11 708 7581 www.highaccess.co.za SHIPPING MAERSK The global containerized division of the Maersk Group, is dedicated to delivering the highest level of customer-focused and reliable ocean transportation services. +27 21 408 6000 www.maerskline.com
HAMBURG SUD Since its formation in 1871, Hamburg Süd has evolved from a conventional shipping company into a globally operating transport logistics organisation. +27 31 334 4777 www.hamburgsud-line.com TECHNOLOGY BYTES SYSTEMS INTEGRATION Implement and manage customised IT solutions through the integration of hardware and software systems. +27 11 205 7000 www.bytessi.co.za WINE WINES OF SOUTH AFRICA A not-for-profit industry organisation which promotes the exports of all South African wine in key international markets. +27 21 883 3860 www.wosa.co.za For more information about how your company can be recognised for excellence across many areas please get in touch. Your Industry, Their Future, Our South Africa AUG 12 PAGE 99