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WBHO revenue up but subdued West African mining weighs WBHO ’s revenue for the six months to December rose 11.3%, but operating profit fell 15.1% and headline earnings plunged 20.4%, the construction group reported on Monday. The fall in earnings was mainly because of losses from Capital Star Steel, its steel pipe factory in Mozambique, and from the disposal of Symo, a shelving business within Capital Africa Steel. “This is the second reporting period in a row in which WBHO has reported increased revenue and lower earnings,” Stephen Meintjes, head of research at broker Imara SP Reid, said on Monday. In the last financial year the culprit was provisioning of R91m for collusion penalties. Poor mining activity in West Africa affected both revenue and profit from the roads and earthworks division in the period under review. Operating profit in the unit plunged 23% as margins slipped to 8.8% in the period from 10.7% last year. But 15% growth from that unit’s South African businesses partially offset the losses. In addition, revenue from Botswana and Mozambique was stable. The group said its building and civil engineering division largely drove the growth in revenue. This was as a result of sustained improvement in the South African building sector, most notably in Gauteng. Retail projects in West Africa, including a mall in Ghana, further boosted revenue growth. But about half of the revenue increase related to the full consolidation of Capital Africa Steel in the period, WBHO
CEO Louwtjie Nel said. Subdued mining activity affected revenue from the civil engineering division. While building and civil engineering operating profit rose to R152m from R139m in the previous period, operating margin fell marginally to 4.3%. The group said operational and contractual complexities of large civil projects, together with a lengthy claims resolution process, had prompted a more conservative approach towards profit recognition. In coastal areas, markets remained stable and its divisions performed largely in line with expectations. Revenue from the Western Cape shot up 29%, mainly on revenue from the Kathu solar farm project, continuing projects at the Victoria & Alfred Waterfront and residential flats. In KwaZulu-Natal, provincial hospital work at Empangeni, commercial offices in Umhlanga and a Transnet pipe project in the harbour were the significant revenue contributors in the six-month period. In the Eastern Cape, construction of the FAW truck assembly plant in the Coega Industrial Development Zone near Port Elizabeth was nearing completion. In addition, the construction of the business school for the Nelson Mandela Metropolitan University was progressing well. Australian revenue from subsidiary Probuild fell 6% in dollar terms, but “solid performance” from its WBHO civil unit, which grew revenue 67%, offset the drop.
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SAXENI FOSKER FEATURE We utilize mostly our own equipment on projects of which a couple are listed below. Our Current fleet of vehicles is in excess of 80 units and expanding as the industry demand for our work increases.
Established in 2008, SAXENI is a South African owned and operated company, based in Sundra, Mpumalanga. We function as a multi disciplinary contracting and management concern in the mining and construction industries.
WHAT WE OFFER YOU Project management Turnkey projects Construction management and installation Strategic alliances Range Of Services
Because our core personnel have been working together as a team for the past ten years, our collective ability and expertise enables us to deliver on our mission statement.
Overland conveyor systems Dome installations Heavy lifting and rigging Stacker and reclaimer installation Process plant installation and material handling design Plant civil works and Bulk Earthworks Steel fabrication Steel and mechanical piping installation HDPE Piping Electrical and C & I Eskom HV line installation
All personnel are actively involved in the in day to day activities of the Company.
Safety and Quality
Saxeni is a Black Ecomonic Empowerment Company, with Managing Member Mr Samuel Makolane holding a 26% Shareholding in the company . Our current B-BBEE Status is Level 2. We are committed to supplying good quality products and superior service to all our clients.
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SAXENI management and workers are committed to safety. Our strive is “TARGET ZERO� Even though SAXENI is not accredited with ISO 9001, we comply to all standards and procedures, and will accommodate reasonable requests from our clients, given the uniqueness and nature of the project.
Tel: +27 (0)87 944 2082 Tel: +27 (0)13 661 1773 Fax: + 27 (0)86 743 1869 Email: chane@saxeni.co.za Website: www.saxeni.co.za 72 Modderfontein Rd Plot 408 SUNDRA 2200 South Africa P.O. Box 269 SUNDRA 2200 South Africa
Saxeni is a management concern, providing both services and equipment to the mining and construction industries. Our strength lies in the diversity of our personnel, providing expertise on project management, construction management, plant installations and partnerships in strategic alliances. We pride ourselves on our multi disciplinary team able to offer advice, management services or the infrastructure needed in the complex world of mining and construction.
WHAT WE OFFER YOU Project management Turnkey projects Construction management and installation Strategic alliances Construction plant sales and hire
RANGE OF SERVICES All types of process plant installations Overland conveyor systems Dome installations Heavy lifting and rigging Stacker and reclaimer installation
TO BE THE MOST PROFESSIONAL SERVICE PROVIDER TO OUR BUSINESS PARTNERS ‌ AND BE THE BEST IN EVERYTHING WE DO. 3
Kenya’s Thika superhighway leads to more mega-projects The 50 kilometre-long Thika superhighway in Kenya, which was funded by AfDB but constructed by Chinese firms SinoHydro Corporation, China Wu Yi and Sheng Li Engineering Company
Hari Ramesh, chief resident engineer for the 50.4 kilometre-long Thika superhighway in Kenya, said its completion was an engineering feat as it was done when the road was still in use. The superhighway is one of the biggest infrastructure projects by Chinese companies so far. It was handled by SinoHydro Corporation, China Wu Yi and Sheng Li Engineering Company. The involvement of the Chinese in mega infrastructure projects in Kenya appears to be increasing. China Bridge and Road Construction has been chosen as the contractor of the standard gauge railway line.
The construction of the houses was done by China Wu Yi. This same company is constructing the KCB Bank Centre in Upper Hill, Nairobi, one of the first buildings that will utilise green technology to reduce demand for power and water. Mr Ramesh said a project of the magnitude of Thika superhighway is not only about easing transport but is also about technology transfer. For instance, under the construction phase, engineering students and professionals from Kenyan universities and technical colleges would be embedded with the project engineers to improve their on-the-job skills.
Anhui Construction Engineering Group and China National Aero-Technology International Engineering Corporation are the chosen contractors of the Greenfield Terminal at Jomo Kenyatta International Airport in Nairobi.
He said the project also received delegations from across Africa as project planners mainly drawn from the public sectors sought to learn about the project.
Chinese companies may also benefit from contracts to develop the LAPSSET infrastructure in particular the pipeline to move oil from Uganda, Kenya and South Sudan to the yet to be constructed Lamu Port; the railway line linking Ethiopia to Lamu Port and other related infrastructure.
“This is a historic infrastructure project for Kenya and it is vital that the mistakes made and how they were or are being resolved become future reference points,” said Evaristus Irandu of the University of Nairobi, Department of Geography and Environmental Studies.
Analysts see infrastructure and trade as the biggest drivers of China-Africa relations.
While much of the co-operation has been in infrastructure development, the Chinese are seeking to widen the scope to other sectors, according to Chinese ambassador to Kenya Liu Guangyuan.
“The ties between China and Kenya will continue to grow because of the converging interests in infrastructure, innovation and natural resources,” said Denise Kodhe, the executive director of the Institute for Democracy and Leadership in Africa. Analysts said there is well co-ordinated co-operation between Chinese public and private institutions in their competition with the West to win big infrastructure contracts in Africa especially where bilateral concession loans have been provided by Chinese public financial institutions.
One key focus is the media. “Nowadays, both the Chinese and the African people are eager to understand each other more than ever before. This trend presents vast opportunities for China-Africa media co-operation,” said Mr Guangyuan. He said that the Chinese government will this year set up the China-Africa Press Exchange Centre in China where East African media houses have been invited to set up offices so that they can tell African stories to the Chinese people more directly.
Pricing Chinese companies give competitive prices for projects, which is an added advantage. This has seen them win projects financed by Western financial institutions and multilateral bodies like the African Development Bank, which financed the Thika superhighway. READ: China’s lending to Kenya hits $750m Another advantage that Chinese firms have is that their government uses its financial and technology muscle to give Chinese companies an edge in Africa. For instance, in 2009 the China Development Bank gave a loan to Kenya construction company Erdemann Property for the construction of 586 houses.
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Four Chinese state media houses have also established headquarters and branches in several African countries, with state news agency Xinhua having a presence in more than 40 African countries. China has also established several Confucius Institutes to teach Chinese language and culture in Africa and will start offering masters degrees in Chinese language this year.
President Uhuru Kenyatta officiates construction of JKIA passenger terminal. The construction of the Sh55.6 billion Greenfield Terminal at the Jomo Kenyatta International Airport is finally set to start after years of controversy. President Uhuru Kenyatta officiated the ground breaking ceremony for the new terminal that will further push up the status of Kenya as a regional aviation hub. The Greenfield Terminal is set for completion in 2017. The proposed terminal has been a battlefront for competing interests whose fights for the control of the tender has spilled into boardrooms, courts and even the National Assembly. The terminal was initially set to start in early 2012 but this was halted after transport minister Amos Kimunya argued the selection of the two Chinese firms that were to start construction had been unprocedural. “The new terminal will be constructed to increase annual handling capacity by 20 million passengers. Construction begins in December 2013 and will be completed in 2017,” said the Kenya Airports Authority in a statement. The facility will increase JKIA’s passenger handling capacity to 20 million passengers. The current airport was originally designed for an annual capacity of 2.5 million passengers. Presently it handles 6.5 million – or three times more than it was designed to handle, leading to difficulties in meeting international customer service standards. PASSENGER TRAFFIC Passenger traffic at the airport has been growing at an
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annual 12 per cent per annum. By 2020, the passenger numbers are expected to almost triple to 17.1 million and grow by a further 100 per cent to 35.3 million by 2030. JKIA is projected to contribute over 10 per cent of the GDP through support of tourism, horticulture and other sectors. In August last year, Mr Kimunya came under fire for cancelling the tender for the construction of the new terminal. Kimunya was protesting the award of the contracts to Anhui Construction Engineering Group and China National Aero-Technology International Engineering Corporation, which had been awarded the contracts after clearance by the Public Procurement and Oversight Authority. The awarding of the contract to the two firms might have cost former Managing Director Stephen Gichuki his job. Though he served a first three year term, he had been sent on compulsory leave in August last year on allegations that the award of the contract was irregular. This was however, overturned by the Industrial Court that ruled the board should reinstate him But soon his luck would run out, because he was never considered for a second term. Instead, the board sent him on a terminal leave in August, two months before his term expired. This, the board had said, was in line with hiring rules that required Mr Gichuki be away so as not to influence the hiring process. The Greenfield Terminal will transform JKIA into among the largest airports in Africa.
Cresta Shopping Centre NMC commenced with the R250 million upgrade of the Cresta Shopping Centre in April 2013. The project is being executed in two phases.
shopping centre to allow passengers to hop on and off. One of the most popular viewing spectacles was the turning of the train on a giant turntable on the other side of the track.
Phase I, valued at R122 million, comprises the lowering of an existing road level by 5m to allow for the existing bridge to over the road to be lowered – this will create an extra storey and open up an additional 600m² retail space.
While the train no longer runs, Cresta continues to innovate and a lot of additions were made to this shopping centre in Johannesburg in recent years.
Phase II, valued at R128 million, comprises the refurbishment of 111 shops and complete upgrade of all open areas at lower, ground and upper level to Agrade finishes.
This has secured Cresta’s reputation as a favourite family shopping destination for locals and international visitors alike. The centre boasts a large cinema complex and a theatre and restaurant complex, which all add value to an already great experience.
For a safe and relaxed shopping experience in South Africa’s bustling metropolis of Johannesburg, the city boasts a number of enticing and accessible malls, with Cresta Shopping Centre being one of the largest shopping attractions in the Southern hemisphere.
Cresta Shopping Centre has served as one of Johannesburg’s prime family shopping destinations since 1977. Locals and international visitors alike will remember the model train, which in recent years has made place for an ever-expanding selection of exciting entertainment, dining and shopping facilities.
Built in 1977 the centre has gone through a number of refurbishments and nowadays it offers everything you can expect from a modern shopping experience. Because of this Cresta Shopping Centre is a perfect destination for international business people or holidaymakers who find themselves with some time to spare in Joburg – the economic engine of subSaharan Africa. Cresta’s three floors feature all South Africa’s beloved chain stores, like Pick 'n Pay, Woolworths, Edgars, Truworths and Ackermans. Banks, specialty shops, food outlets and plenty of fashion boutiques complete the shopping experience in the centre, situated on the border of the Northcliff and Cresta suburbs. Older South Africans and foreigners who have visited Johannesburg in the past will fondly remember the model train, which ran through the mall. The train would stop at various places in the Johannesburg
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South Africa on a growth curve different from Nigeria The Nigerian economy has not grown by about 80% overnight. To calculate GDP, government statisticians use the price of goods and services from a "base year" as a point of reference. As this base year gets older, and the structure of any dynamic economy changes, so the GDP calculation will become more inaccurate. For this reason, South Africa recalculates the base every five years. In contrast, the previous Nigerian base year was 1990, so what we are seeing is a realignment with reality. Questions whether this statistical calculation can provide an indication of the quality of the economy can be answered by the fact that South Africa’s GDP is about the same size as Austria’s; it is larger than Denmark and Finland’s; it is twice the size of Ireland’s and almost three times the size of New Zealand’s. The size of GDP taken into account with the structure and character of South Africa’s economy is very different from these so-called developed economies. Similarly, South Africa’s economy is at a very different point on the developmental curve from Nigeria’s — their infrastructure, financial systems, manufacturing capabilities, quality of services, retail markets and income levels, to name some of the relevant factors, are incomparable.
Among other things, this will require strong regional hub economies that can drive the creation of markets with greater critical mass, coherence and density of economic activity. South Africa’s own long-term economic growth prospects could be inherently linked to this integration process. Access to expanding consumer markets across Africa could be a critical driver for South Africa’s economy, which is now essentially consumer driven. It is no coincidence, therefore, that investment by South African companies in FDI projects in the rest of Africa has grown at a compound rate of more than 40% since 2007. Companies headquartered in South Africa have invested in the second-largest number of FDI projects in Nigeria over that period, particularly in consumer-facing sectors such as retail, consumer products, financial services and telecommunications.
As the rebasing of Nigeria’s GDP has been signalled for a long time, the result is not surprising; however, the statistical recalculation of the size of the Nigerian economy must be looked at in context
Ultimately, the rebasing of Nigeria’s economy simply confirms its status as a dynamic growth market. It reinforces the broader African growth story and positions Nigeria and South Africa as complementary regional economic and investment hubs for West Africa and Southern Africa respectively. This is reason for celebration, rather than angst
In terms of relative investment attractiveness, we are very positive about Nigeria and, for us, the GDP rebasing (and continuing growth of the economy) simply reinforces the investment proposition. But investment attractiveness is about far more than the size and growth rates of an economy. One has to weigh up the potential rewards against the risks and challenges to doing business. On any kind of objective risk-versus-reward opportunity analysis of African markets, South Africa will be among the bestpositioned markets for the foreseeable future. This is why South Africa remains by far the leading destination for greenfield foreign direct investment (FDI) in Africa, attracting almost 25% of all projects into sub-Saharan Africa since 2007 (compared with 9% for Nigeria). However, as Africans, we feel that there is a real danger in creating a false sense of competition between two of Africa’s powerhouse economies. This kind of narrative serves to further entrench the historical marginalisation of Africa’s still fragmented markets, and is damaging in the context of repositioning Africa as a regional destination for investment. This is a critical point, because as much as nations compete for investment, so do regions and, despite improving perceptions, Africa does still have much ground to make up relative to other regions. With the shifting dynamics in the global economy, we believe Africans have a unique opportunity to break the structural constraints that have long marginalised the continent. However, this will be achieved only by fashioning greater regional coherence from the present patchwork quilt of 54 sovereign states.
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Pyo-cote - Specialised Fire Protection Coatings KBS Fire Retardant Coating For preventing fire propagation along grouped electrical cables. KBS Coating is a tough, water and weather resistant, non-intumescent cable coating used world wide since 1967. KBS Coating prevents fire propagation along vertical and horizontal cable bundles and prolongs circuit integrity without affecting the current carrying capacity.
PETROCHEMICAL AND CHEMICAL INDUSTRY Tetrok C is a factory premix material that can be spray or trowel applied. Typical applications are structural steel, LPG and other combustible storage vessels, as well as a fire proof ducting around instrument and electrical cables. Tetrok C applied to structural steel in a chemical plant.
Pyrosafe Intumescent Fire Protective Coating Available as a solvent based product "Pyrosafe SB" or a water based product "Pyrosafe WB". Pyrosafe when exposed to elevated temperatures expands to form an insulating char. Typical applications are: Fire proofing of structural steel - fire rating of 60 minutes.
COMMERCIAL BUILDINGS For fire proofing of structural elements in building, mainly steel, Tekrok S is a low-cost, spray-applied vermiculite plaster providing up to 120 minutes fire protection.
Fire protection of timber - "0" flame spread rated Class 1 in accordance with SABS 0177 part 3.
Tetrok S applied to structural steel in a shopping mall upgrade.
Fire proofing of plastic pipes and electrical cable installations in areas not subject to moisture or industrial chemicals. Pyrosafe allows for: Fast contact scheduling. Minimum amount of interference to the other contract activities. Provides an architectural finish to the steel. Application of Pyrosafe to the structural steel at Johannesburg International Airport Pyrosafe allows for fast contact scheduling, minimum interference to other contact activities and provides a decorative finish. Fire Proofing and Acoustic Plasters For the special needs of the Petrochemical, Chemical and Building industry we are able to offer a number of specially formulated vermiculite based fire proofing plasters.
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Tetrok C applied to a LPG Vessel. Fire rating 120 minutes in accordance with NFPA58.
ACOUSTIC AND DECORATIVE CEILING MATERIALS Mandoval Acoustic Spray is a vermiculite based material with a proven history of successful sound control. MANUFACTURING The Tekrok products are manufactured by Mandoval Vermiculite cc, a company with over 35 years experience in the development of insulating and fire proofing plasters. Mandoval Vermiculite is an accredited ISO 9001:2000 manufacturing plant with all products having been officially tested by the SABS in accordance with national & international standards.
Green Building Council South Africa wins award for Green Street initiative For the past 23 years the eta Awards have been rewarding excellence and exceptional effort in the more efficient use of energy by individuals, students, companies or other institutions and this year the awards recognised the efforts of the GBCSA in the Community category. The historic township of Cato Manor in Durban was the location for South Africa’s first ‘Green Street’ upgrade in a low-income area. Completed ahead of the COP17 international climate change talks in late 2011, thirty low-cost houses in a small cul-de-sac road received a green upgrade, otherwise known as a retrofit. 26 more houses were completed after COP 17. It was the first comprehensive green street ‘retrofit’ in a low-income housing area in South Africa. “We wanted to demonstrate how green houses can contribute to a better quality of life and we have achieved this,” says Sarah Rushmere, Special Projects Manager at the GBCSA.
less need for heating fuels like paraffin, coal and wood, which means reduced health problems and fire safety risks for these homes,” explains Rushmere . These houses also received energy efficient lighting in the home and LED street lights, insulation roof paint and ceilings, heat insulation cookers and other green interventions. Brian Wilkinson, CEO of the GBCSA says that it is testament to the success of the project that it has been recognised and awarded by Eskom’s eta Awards. “We are pleased and proud to receive this accolade alongside the Cato Manor Green Street community. South Africa must increasingly move towards more energy efficient and sustainable practises and the GBCSA will continue to strive for influence over the built environment.”
The Green Building Council of South Africa is the winner in the Community Category of this year’s Eskom eta Awards for their Green Street initiative in Cato Manor, Durban – as announced at the award ceremony which took place on 04 December 2013.
“Some of the highlights and positive outcomes from the project include residents having hot water on tap for the first time through solar water heating; a saving of up to 27% off the cost of electricity; access to water through rainwater harvesting - with a knock on effect of food security through irrigation; improved thermal comfort through better insulation and ventilation; and
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SA construction industry remains under pressure The Asia-Pacific region has been a lifesaver for big South African construction firms, including Aveng and Murray & Roberts. Chinese demand for Australian minerals has complemented a boom in oil and gas projects in the region, despite the global recession.
SOUTH Africa’s construction industry is not out of the woods yet, despite data pointing to an upward trend.
while outstanding claims on the project are a drag on the group, he says.
In the fourth quarter of last year construction confidence rose to a new five-year high, with a recovery in construction activity and moderation in tendering competition.
But Group Five, which operates in African, Middle Eastern and Eastern European markets, says despite continuing frail construction markets in South Africa and the rest of Africa, mining and cross-border energy projects, and Africa’s general infrastructure needs are likely to boost the pipeline of work.
However, the balance sheets of major JSE-listed construction and engineering groups are still showing strain. Aveng’s Australasia and Asia segment is delivering four times the value of its home continent. The company says it has seen "no material improvement" in South African infrastructure spending.
Unlike Aveng and listed peer WBHO, in the six months to December Group Five has seen revenue from continuing operations shoot up 55.7%, with headline earnings per share soaring 40.7%. South Africa still accounted for 82% of the secured construction and engineering order book.
But as China’s commodities demand tapers in favour of consumer-led economic growth, and major oil and gas projects near completion, Aveng is turning to countercyclical infrastructure spending in places such as Singapore and Australia.
CEO Mike Upton says he expects to see "massive growth" in African power and oil and gas projects, along with a resurgence in mining. "But we are still really waiting for a big roll-out of infrastructure in South Africa," he says.
Legacy issues at home and abroad still echo or remain, though Group Five says legacy costs in the Middle East that were once a heavy burden are now "really not material". In the meanwhile, its transport investment and concession projects in Eastern Europe and Africa have come to exceed 25% of core group operating profit.
In its interim results to December, WBHO’s operating profit fell 15.1% as headline earnings plunged 20.4%, even as revenue climbed 11.3%. The group has had operational problems at its Capital Star Steel pipe factory in Mozambique, and lost money on the disposal of a shelving business. In addition, it has seen poor mining activity in West Africa and generally.
But Aveng’s Grinaker-LTA construction and engineering division in South Africa and the rest of Africa is still executing contracts at "inadequate margins". It says fixed costs are still too high in the business, while there have been delays in the resolution of project claims. Labour disruptions in South Africa directly cost the group R96m in the past six months.
CEO Louwtjie Nel says that work has "dried up" on West African mines. This is also a concern for the group in South Africa and Australia, as mining is a significant chunk of profit, he says.
Meanwhile, the roll-out of big projects in the government’s R4-trillion infrastructure plan has largely stalled, as major construction and engineering work on Eskom’s new Medupi and Kusile coal-fired mega power stations comes to a close. In its interim results to December, Aveng’s headline earnings per share plunged 21%, even as overall revenue rose 11%. Aveng Grinaker-LTA is targeting break-even only in financial 2015. New CEO Kobus Verster says the past six months have been a period of consolidation and repositioning of the group’s diverse operations. But he also says there is "a way to go" before it reaches its full potential. "Following on from trading updates, it wasn’t much of a surprise when earnings came out," Suraj Sookdhew, head of portfolio management at RMB Private Bank, says. The Queensland Curtis liquefied natural gas pipeline and facilities project in Australia has required heavy levels of financing by Aveng in recent years,
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But WBHO saw 15% revenue growth in its South African businesses in the period. It says building and civil engineering largely drove this as a result of sustained improvement in the South African building sector. Group Five derives 71% of its building and housing revenue from large-scale public-sector housing projects, including low-cost housing. While it says there have been significant delays in the awarding of public-private partnerships and conventional publicsector tenders in South Africa, it has mitigated this by securing contracts in public transport, hospitals, prisons, magistrates’ courts and affordable housing. Mongezi Mnyani, CEO of the National Home Builders Registration Council (NHBRC), says that the body works closely with government agencies, including the Department of Trade and Industry, the Council for Scientific and Industrial Research, and the Construction Industry Development Board. The state-mandated body also works with privatesector companies including Group Five and ArcelorMittal South Africa, the country’s premier steel maker, which are involved in modular housing developments.
ArcelorMittal global subsidiaries make insulated steel panels to construct low-cost housing, schools, shopping centres and factories. The group has already built schools from these materials in Tshwane and the Eastern Cape, and will do so across all of the country’s provinces. The NHBRC has been tasked by the Department of Human Settlements to co-ordinate building work in municipalities and provinces.
with the fears of the market," says Mr Mnyani. "Parliament is keen to utilise such systems with regard to the housing backlog. "I think we have been disjointed as government ‌ but now we are starting to see co-ordination among government itself," he says
Its Eric Molobi Housing Innovation Hub in Soshanguve, near Pretoria, supports innovation in affordable, quality housing for South Africa’s most vulnerable citizens, using technologies developed both in South Africa and internationally. Mr Mnyani says there has been a lot of improvement in low-income housing over the years. The NHBRC trains and dispatches inspectors to projects nationally. The laws governing the building of habitable structures have also changed to accommodate new technologies. In this regard, Mr Mnyani says privatesector construction and engineering companies and industry bodies play a critical role in quality assessment and ensuring such buildings will stand the test of time. "We have seen that even the banks are starting to accept them. I think, bit by bit, we will be able to deal
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Green Building Council celebrates 50 Green Star SA certifications South Africa’s green building movement has gained significant momentum with the achievement of 50 Green Star SA certifications in only six years.
The milestone was marked at an event held in Johannesburg on April 10 by the Green Building Council South Africa (GBCSA), which was established in 2007 to lead the transformation of the property sector by ensuring that all buildings are designed, built and operated in an environmentally responsible way. The event was attended by Green Star SA project owners, accredited green building professionals, sponsors of rating tools used to develop and assess buildings, and representatives of property industry groups. Developers of the 50 certified projects expect their buildings will result in significant annual savings of 76 million kilowatt hours (the amount of electricity needed by 5 300 households for a year), 115 million kilograms of carbon emissions (equivalent to taking 28 000 cars off the road), and 124 million litres of water (sufficient for 34 000 households for a year). “Reaching 50 certifications illustrates the commitment the South African commercial property sector has shown towards resource efficiency and climate change abatement, while creating healthier and more productive environments for us to work and live in,” says Brian Wilkinson, CEO of the GBCSA. “The GBCSA could not have achieved the success it has to date without the support of some very big players in the sector that have pioneered the way to a better future for people and planet. The 50 certifications celebratory event honoured and thanked these leaders for their valuable support.” Globally, the built environment is responsible for one third of all carbon emissions and with global warming a very real concern that affects us all, a shift in focus to
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green building is something that should be foremost in everyone’s minds – from government, to developers to the average man in the street. According to McGraw and Hills’ World Green Building Trend survey (2013), 51% of South Africa firms expect to be building green by 2015 – most notably in the commercial markets. This suggests that outside investors, developers and owners will have an ongoing, important role to play in the ongoing green building groundswell. Going green is not just about the environment, the bottom-line benefits of building and operating green buildings are particularly important considering South Africa’s rising energy costs and water scarcity – coupled with lower risks, improvements to employee productivity and ultimately, better investment returns and higher property valuations. “We are absolutely thrilled by the uptake in green building in South Africa. In the past few months the number of buildings that have been certified, or which have applied for certification, has increased exponentially – with 20 buildings being certified in 2013 alone. We are confident that this upward spike will continue as an ongoing trend as increased market demand and clear financial rewards, coupled with mounting government regulations and shareholder pressures, provide multiple incentives to own and occupy high-performance green buildings,” concludes Wilkinson.
Green education on the up in SA with the GBCSA The Green Building Council South Africa (GBCSA) will be doing an online re-launch of a number of their existing courses which have been upgraded, reworked and repackaged. One of which is the Green Star SA Accredited Professional Programme for New Buildings. This AP Programme is the Council’s core educational offering and teaches the background, theory and detail of the application of the Green Star SA Design and As Built rating system for new buildings and major refurbishments. “Apart from updates and major upgrades to the course material, the major change is the shift away from the presentation of the courses as ‘live’ hosted, single day courses presented for 50 delegates at a time in the three major urban centres in South Africa to an Accredited Professional syllabus or set of parts that together make up the GSSA Accredited Professional Programme for New Buildings,” explains Donne Putter, Education and Training Manager for the GBCSA. “This new AP programme will be made up of a comprehensive, in-depth course hosted online in 13 distinct modules that cover the theory aspects of the tool followed by a live, inperson interactive workshop hosted in an actual Green Star SA building, where learners are able to experience the building, interact with their peers and apply their learning from the first part of the course. This would then be followed by an online exam, as is currently offered, to attain the GSSA AP qualification.” Putter explains that the decision to offer online training in combination with face to face classroom style learning was taken as teaching time can be moved online and done independently by attendees, and face to face time can be used for quality engagement and learning with experts and faculty members. “The online format allows us to test competencies ensuring a higher level of understanding of the material presented. Reduced travel time for participants and our lecturers are also benefits - this has a positive effect on all of our carbon footprints – and we are now also able to reach participants in all geographical locations of South Africa. This is just the tip of the iceberg, we believe the possibilities are endless.”
qualifications. “In July 2014, we will launch the live (face to face) components of the two new AP programmes as well as a new course for green communities.” In addition to the new online courses offerings the GBCSA will also be offering two new “in person” courses, one which introduces Green Star for Contractors (sponsored by Saint Gobain) and another which explains the drawing up of a green lease between tenant and landlord.
Other courses to be launched online include two more specialised programs; namely the upgraded Project Certification Workshop and the Simulations and the Submissions Course.
The half day Green Star for Contractors course was developed for the Green Building Council South Africa by Saint Gobain in response to, and recognition of, the need for contractors to better understand the impact of the application of the Green Star SA rating system on their construction projects. The course covers all the key areas of the tool that would impact on tenders and subsequently site management of a project aiming for a rating and empowers contractors to play a key role in obtaining the highest possible rating on time and within budget. The Economics of Green Building course will continue to be offered as a live in person program. This course sets out to demonstrate the financial motivation for green building and explores the discussions and debate around the perceived costs of green building. It covers the benefits and obligations of property stakeholders, as well as the property value proposition and the financial case for green building.
In addition to the re-launch of the existing courses, including the AP programme mentioned above, the GBCSA will also be launching the brand new Accredited Professional Programme for the Interiors Tool and the Accredited Professional Programme for the Existing Building Performance Tool. These are offered in parallel with the pre-existing qualification and teach the application of two new Green Star SA tools, one for Interiors and one for Existing Buildings Performance. According to Putter these programmes will consist of three parts; online courses followed by in person workshops and finally an online exam, and will offer learners the opportunity to attain two additional AP
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SAVE THE DATE 2014 Green Building Convention The leading green building event in South Africa - the 7th Annual Green Building Convention brought to you by the Green Building Council of South Africa - is set to take place at the Cape Town International Convention Centre from 10 – 12 September 2014.
2013 saw the world coming to Cape Town for the 6th Annual Green Building Convention, this year the GBCSA are focusing on Africa - bringing it home. The aim is to highlight the richness and potential of the African continent and bring you speakers of South African origin who are pioneering the world in their own way as well as those who are working in this space on greater African soils. One of the highlights on the South African property and sustainability calendar – the Green Building Convention, sponsored by Nedbank Corporate Property Finance, is highly regarded for delivering an engaging programme by securing thought leaders from around the globe who deliver inspiration and insight into the latest green building and sustainability trends. Already confirmed in this year’s speaker line-up, and in keeping with the theme of focusing on our own continent, is Zimbabwean Architect Michael Pearce. Committed to creating architecture that is appropriate to its surrounding environment and climate, Michael Pearce was the project architect on the well-known Eastgate development in Harare. Completed in 1996, this major office and retail centre is entirely cooled by natural systems and makes fantastic use of passive design, a bold step away from the all-glass high-rise that is unsuitable to warm, tropical climates. He has spent his career specialising in buildings which have low maintenance, low capital and running costs and make use of renewable energy systems, taking most of his inspiration from nature. With Eastgate, Pearce looked to the termite mounds that dot the savannah of Zimbabwe. Like offices, these mud masterpieces have to maintain a certain constant temperature range throughout the day. They do this by both exhausting hot air through the “chimneys” and simultaneously allowing cooler air to filter through the elevations and sink to the base of the mounds. Eastgate was, and still is, a fantastic success and set Pearce on a passionate architectural journey to enhance sustainability and diversity in the built
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environment. Pearce then moved to Melbourne where he became city architect and led the design for the Council House Two (CH2) building, the Municipal Offices for Melbourne City Council. Completed in 2006 and located in the central business district, the city wanted to showcase its agenda on sustainability by building and exemplar green building. Following on from principles formed at Eastgate, the building responds to the natural, socio-cultural and economic environment of its specific location, mimicking the way nature’s ecosystems are embedded and symbiotic with its surrounds. The building was Australia’s first 6 star Green Star rated building and is always held up as an iconic and pioneering green building. Pearce has now moved back to Harare, bringing his talent back home to African soils. The 2014 programme will offer two days of selected keynote presentations and panel discussions. The successful Brainwave Stage from last year’s convention is back, and will host short, TED-like presentations from the green building community. This will all be enriched by an exhibition - created to encourage business to business opportunity, stimulate the green economy and inspire both our local and international colleagues. The convention also offers optional pre-conference education courses and programmes as well as building tours of Green Star SA certified buildings. In addition, there are a number of social events surrounding the convention that are not to be missed. The Green Building Convention provides outstanding networking opportunities with key decision-makers and industry professionals. Registration for this notto-be-missed event is expected to open during the month of March.
Green Building groundswell sees 50 Green Star SA certified buildings in SA Green Star SA tools – the rating system for green buildings in SA
Sisonke District Offices; Ixopo, Kwazulu Natal - 5Star (2012)
The GBCSA developed a series of Green Star SA rating tools that set the standards for green building and provides clear guidelines on what constitutes a ‘green building’.
City of Cape Town Electricity Services Head Office; Cape Town, Western Cape - 4-Star (2012)
Green Star SA is based on the internationallyrespected Australian Green Star rating system, and has been customised for the South African context. It is a voluntary rating system designed to allow the commercial property sector to independently rate and certify buildings and developments via a common green building ‘language’. The tool for new buildings encourages the built environment stakeholders and professionals to minimise the environmental impacts of their developments. Amongst other things it rewards projects for initiatives that see a reduction in waste sent to landfill and the creation of more resource efficient designs. The overall result; a building with reduced energy and water consumption and lower operating costs. The Green Star SA tools allow for certification of buildings based on the following levels of achievement: · 4 Star Green Star SA Certification - “Best Practice” · 5 Star Green Star SA Certification - “South African Excellence” · 6 Star Green Star SA Certification - “World Leadership” “The GBCSA could not have achieved the success it has to date without the support of some very big players in the sector that have pioneered the way to a better place for people and the planet. The support has been widespread but of most significance is the take up of Green Star SA by Government bodies and big businesses from banks and property developers,” says Brian Wilkinson, CEO of the Green Building Council South Africa. “Globally, the built environment is responsible for one third of all carbon emissions and with global warming a very real concern that affects us all, a shift in focus to green building is something that should be foremost in everyone’s minds – from government, to developers to the average man in the street.” Government leading by example “It’s encouraging to see the country’s leadership take up international best practice when it comes to green buildings and we are delighted that there are nine government buildings certified to date. One of the only three 6-star buildings to be certified so far in South Africa is also in this category,” says Wilkinson. Government building to achieve Green Star SA status are: SANRAL Corporate Head Office; Pretoria, Gauteng 4-Star (2012)
Human Settlements Contact Centre, Manenberg; Cape Town, Western Cape - 4-Star (2012) Agrivaal Building National Department of Public Works; Pretoria, Gauteng - 4-Star (2012) ·Government Communications and Information Services Head Office; Pretoria, Gauteng – 4-Star (2013) SANRAL Western Region Office; Cape Town, Western Cape - 4-Star (2013) ·Nelson Mandela Metropolitan University’s Business School; Port Elizabeth, Eastern Cape - 4-Star (2013) ·Department of Environmental Affairs Head Office; Pretoria, Gauteng - 6-Star (2013)
After just six years the Green Building Council South Africa has certified its 50th building. From humble beginnings the journey of the council has seen some exceptional growth and the groundswell of green building in South Africa is exciting to witness. The GBCSA has single handedly activated and supported the commercial property sector towards a greener future, making way for green buildings.
“As the largest owner and operator of property, the Government plays an influential leadership role in accelerating sustainability in the built environment and it is very exciting to see this impressive line-up of Green Star SA rated buildings which clearly indicate governments buy-in to green building practises,” says Wilkinson. Making Business sense According to construction company McGraw and Hills’ World Green Building Trend survey (2013), 51% of South Africa firms expect to be building green by 2015 – most notably in the commercial markets. This suggests outside investors, developers and owners will have an important role to play in the ongoing green building groundswell. Organisations within the financial sector, who make it their business to focus on successful long term investments are embracing green buildings as they have recognised that investments in green buildings can produce measureable financial value, such as increased rental rates and asset value, reduced risk of depreciation, and higher tenant attraction and retention rates. Nedbank, which is known as the “green bank” has positioned itself as a leader in the green building movement in South Africa with three buildings having received a total of five Green Star SA ratings to date. The Nedbank Menlyn Maine Falcon Building in the Menlyn Maine Precinct achieved a 4-Star Green Star SA Design rating, as well as a 5-Star Green Star SA As Built rating; the Nedbank Ridgeside Office Development in Umhlanga Rocks achieved a 4-Star Green Star SA rating; and the Nedbank Phase II building in Johannesburg achieve a 4-Star Green Star SA Design rating as well as a 4-Star Green Star SA As Built rating. Amongst the other groundbreaking buildings to have achieved Green Star SA ratings within the banking
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Today, green buildings can be delivered at a price comparable to conventional buildings and investments can be recouped through operational cost savings and, with the right design features, create a more productive workplace.
sector are the Portside building, situated in Cape Town’s Foreshore, which achieved a 5-Star Green Star SA rating, and which is a joint initiative between Old Mutual and Firstrand Bank, as well as Standard Bank’s office development in Rosebank which achieved a 5-Star Green Star SA rating. Other Green Star SA certified buildings are: Vodafone Site Solutions building; Midrand, Gauteng6-Star (2011) 40-On-Oak; Melrose Arch, Gauteng - 4-Star (2011) DSTV City; Randburg, Gauteng - 4-Star (2013) Alice Lane Phase 1 & Phase 2; Sandton, Gauteng - 4Star (2013) National English Literature Museum (NELM); Grahamstown, Eastern Cape – 5-Star (2013) Hyundai Head Office; Bedfordview, Gauteng- 4Star(2013) Chevron Project CORE building; Cape Town, Western Cape -5-Star (2013) Lakeside Office Park; Centurion, Gauteng -4-Star and also awarded SAPOA Innovative Excellence Award (2013) No 1 and No 2 Silo buildings; Cape Town, Western Cape-6-Star and 4-Star respectively (2013) Developers realizing the business case for green building Because developers have kept increasing utility costs, potential carbon taxes and stricter regulations in mind when it comes to rental premises, they have recognized that Green Buildings are future-proofed, can fetch lease premiums and retain tenants for longer than conventional buildings.
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SA tenants are increasingly demanding green buildings as they provide a healthier and more productive indoor environment. They also reduce the consumption of energy and other resources, which is becoming more and more important. Several buildings belonging to commercial property developers have also achieved Green Star SA status in SA. Amongst these are 24 Richefond Circle, an office building in the Ridgeside Office Park in Umhlanga, which has a 4-Star Green Star SA rating and belongs to Shepstone & Wylie; as well as the Group Five Head Office in the Waterfall Business Estate which belongs to Atterbury Property Holdings. Growthpoint Properties has two Green Star SA certified developments - Lincoln on the Lake and Mayfair on the Lake in KwaZulu-Natal – both of which achieved a 4-star Green Star SA rating. “Developers have identified that there are clear environmental benefits for building green as well as a compelling business case. Going green is not just about the environment, the bottom-line benefits of building and operating green buildings are particularly important considering South Africa’s rising energy costs and water scarcity – coupled with lower risks, improvements to employee productivity and ultimately, better investment returns and higher property valuations,” says Wilkinson. “We are absolutely thrilled by the uptake in green building in South Africa. In the past few months the number of buildings that have been certified, or which have applied for certification, has increased exponentially – with 20 buildings being certified in 2013 alone. We are confident that this upward spike will continue as an ongoing trend as increased market demand and clear financial rewards, coupled with mounting government regulations and shareholder pressures, provide multiple incentives to own and occupy high-performance green buildings,” concludes Wilkinson.
South African Green Leader appointed Chair of World Green Building Council Kerswill, who has been involved with the World GBC Exco since 2009, is passionate about green building and, having recognised that the lack of knowledge about green building in South Africa was limiting our efforts in terms of global warming and international best practice, championed the initiative to set up the Green Building Council of South Africa (GBCSA). Since then the GBCSA has become recognized as the ‘lead’ organisation in green building in South Africa, and is now one of the most active councils globally. Kerswill’s involvement with the World GBC also affords the GBCSA continued and improved access to international resources, information, insight and skills. The World GBC aims to facilitate the global transformation of the building industry towards sustainability, and currently has 100 Green Building Councils from other countries as members. Buildings globally consume about 40% of the world’s energy, and green buildings typically reduce consumption by 50 to 70%, so have a massive impact in reducing greenhouse gases. The WGBC assists new GBC’s and promotes interaction in its network, as well as providing leadership on common global issues. During his involvement with the WGBC, Kerswill has championed the cause for social and environmental impacts to be included in the concept of green
building for developing countries, and has played an integral role in facilitating the formation of the Africa Regional Network of Green Building Councils. Kerswill has had a long career in the commercial property industry. A Town and Regional Planner and MBA by training, he moved into property development and housing, and then into property asset management and corporate strategy. With partner Rodney Squire-Howe, he co-founded Spire Property Group and assembled the Paramount Property Fund, listing it on the Joburg Stock Exchange in 2001. Most recently he played an integral role in the formation and listing of the Tower Property Fund, the first fund to list on the JSE under the REIT structure. He is currently Managing Director of Spire Property Group, which provides property management services to private and corporate clients.
Bruce Kerswill, Executive Chairman of the Green Building Council South Africa (GBCSA) and the pioneer who led the charge in the formation of the local Council, has been elected as the Chairman of the World Green Building Council (World GBC)
“I look forward to my role as Chairman of the World GBC: there is a real magic to over 100 countries all working in synch to address some of global society’s greatest problems. WGBC has over 28 000 companies, including some of the world’s largest, who are members of its constituent GBC’s. I believe it is one of the most effective organisations in addressing climate change, effecting change on the ground and in people’s behavior – and all done in a great spirit of camaraderie” concludes Kerswill.
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Expansion will help relieve pressure on rail sector KEEPING AFLOAT the South African rail sector needs large rail projects to keep it buoyant, which require substantial capital investment to fund
Owing to poor economic conditions, the South African rail sector is under strain, says engineering, management and specialist technical services company Aurecon railway engineering technical director Francois Heyns. However, State-owned rail services provider Transnet’s large capital expansion programme could provide the impetus for the sector to recover, he adds.
“The rail sector needs large rail projects to keep it buoyant, which require substantial capital investment to fund. “The funding and feasibility of these projects are a challenge, particularly in current market conditions, where prices of bulk mining commodities are under strain,” Heyns asserts. He notes that bulk mining commodities, such as coal and iron, offer the South African rail sector the greatest opportunity for growth into Africa, as they constitute substantial export volumes. Heyns adds that there is a great need for training and skills development in the rail sector. “Transnet is making a significant effort to develop skills in-house through various programmes and has embarked on a supplier development programme with all its suppliers to further develop industry skills.” The supplier development programme is a Department of Public Enterprises initiative, supported by Transnet, which aims to increase the competitiveness, capacity and capability of the South African supply base, where there are comparative advantages and potential competitive advantages of local supply. This increase in competitiveness, capacity and capability can be achieved through skills transfer, increasing the local content of items procured and building new capability in the local supplier base.
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Flooring range launched onto local market In response to the growing demand for efficient and cost-effective methods of industrial floor preparation and rehabilitation, flooring solutions provider Diamond Products launched its new ranges of floor grinding, polishing and cleaning systems onto the South African market in September last year at the bauma Africa trade show, notes company director Brian Clark. Clark tells Engineering News that the Diamond Products range of floor-grinding, polishing and maintenance systems, along with its floor-grinding and polishing consumables, has changed the game in terms of industrial floor preparation, as it is more cost effective and energy efficient than tools previously available on the market. Clark adds that the Diamond Products range of industrial floor preparation and maintenance products provides an efficient and hygienic alternative to the industry standard. “The Diamatic range of floor-grinding machines is available in sizes ranging from the 180 mm single head system to the 780 mm triple head remote control system and is far more productive, efficient and hygienic than industrystandard manual labour.” The Quickchange range includes a universal adaptor plate that enables the Diamond Products tooling to be attached to most of the traditional floor-grinding machinery available in South Africa. The Quickshine floor-grinding and polishing pads are diamondcoated for the efficient cleaning and maintaining of marble, granite, polished concrete and terrazzo and can be used with or without chemical cleaning agents. Kimberley Hospital Project Diamond Products codirector Darryl Gray says the company recently worked on a project with hospital infrastructure provider Tronkon, which included the construction of six operating theatres, an emergency centre, four ward blocks, a high-care unit, an intensive-care unit and consulting rooms at the Kimberley-based public hospital in the Northern Cape. The construction of the 146-bed hospital is scheduled to be completed in August. Tronkon, is contracted to build the hospital and Diamond Products has been contracted to supply a range of equipment for floor preparation.
WP grinding machine. The Quickchange 16/20 diamond grit pads were also used – these were attached to the client’s Diamatic 435 floor-grinding machine through its universal adaptor plate. “The Quickchange system provided a high-quality and precise grind at a considerably discounted rate, which reduced the overall costs of floor grinding by 30%,” explains Gray. Further, he says custom-made tools from the Diamond Products product range were used to meet the specifications of the hospital flooring. “Unlike a store’s floor that is quite smooth and flat, hospitals need vinyl flooring material to be laid on top of concrete to meet the health and safety requirements, as it is easier to clean.
Diamond Products is the exclusive distributor of Diamatic flooring, grinding and vacuum systems in Southern Africa. It is also the exclusive distributor of the floor-grinding and polishing pad range, Quickchange. Both these products are manufactured in the Netherlands.
“For that purpose, after the concrete surface had been laid, the floor was ground to a smoother and more acceptable finish. Diamond Products floor grinding equipment was used to create a rougher texture to prepare it for the binding with the vinyl flooring material,” elaborates Gray. Diamond Cup Grinders Diamond Products launched a new versatile range of diamond cup grinders in November last year. Clark says the new cup grinders are designed for 115 -, 125- and 230-size hand-held grinders for use on materials such as stone and cement. “The double-row segmented diamond cups offer a greater surface area of grinding diamonds which, in turn, results in time being saved during projects. The cup grinders use synthetically manufactured diamonds, boosting their performance,” notes Clark. The company offers the cup grinders in three forms of grit – coarse, medium and fine. The coarse-grit grinders are suitable for the removal of large layers of material and can remove layers of paint and smooth layers of concrete and excess material. “The medium- and finer-grit cups remove less material, but are guaranteed to provide a smoother finish. The system is versatile because it can be used in conjunction with the Diamatic floor-grinding and polishing systems,” he concludes.
Diamond Products supplied the grinding machinery that was used in the grinding of the hospital floors. The project included levelling 10 000 m2 of floor space, which was done with Diamond Products’ 435
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Hotel construction in Africa gathering After years of delays in hotel construction and infrastructure in Africa, owing to a lack of experienced and knowledgeable investors in the hotel industry, development is starting to gain momentum because of the discovery of minerals in most African countries, says consulting firm HTI Consulting.
Having been involved in more than 200 assignments in Africa since 2003, HTI Consulting CEO Wayne Troughton states that the development in Africa that is starting to take shape has attracted much-needed international investment for the hotel business. Necessity “As more minerals are discovered and explored, infrastructure becomes a necessity. This means that people need accommodation, which has forced a stricter and more orderly way of investment in hotel infrastructure projects and developments,” he notes. Troughton highlights that investors in the hotel business previously lacked the experience in and insight into the business, which led to many unfinished projects and extended delays in the completion of projects because they were inconsistently financed and managed. As a result, projects that would usually take 30 months to complete take between five and seven years to complete. However, he points out that trends over the past two years have indicated that foreign investment in the industry has been stimulated with more experience and better knowledge of the business, which are positive influences on the hotel industry. HTI Consulting highlights that, as most developments linked to mineral wealth occur in remote areas, development is decentralising away from major cities
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to those areas focusing on building three-star and four-star hotels. Lack of development and infrastructure in these areas has led to the need for mixed-use projects around hotel infrastructure that can be linked to shopping malls to ensure convenient living for people. Massive Wealth “In the next 15 years, we are going to see a massive amount of wealth in Africa. China has realised the potential in Africa, and other countries outside the African continent are starting to see the growth potential in Africa. “Our role is to source opportunities for such investors where development can occur and ensure that they are viable and sustainable. “We specialise in the gathering, analysis and interpretation of sensitive market and financial data; the production of market and financial feasibility and viability studies, business plans and marketing strategies; and project concepts for hotel, residential, real estate, leisure, conference and integrated resort developments. “This enables us to nurture long-term business relationships with our clients, providing tailored solutions for every stage of the project’s development,” explains Troughton. “This enables us to nurture long-term business relationships with our clients, providing tailored solutions for every stage of the project’s development,” explains Troughton
Manufacturer secures Gibela contract South African engineering firm Delberg Engineering secured a contract last month for the manufacture and supply of piping-related work, such as handrails and hydraulic pipe systems, which will be fitted onto the locomotives and coaches being supplied to the Passenger Rail Agency of South Africa by the Gibela Rail Transportation consortium. Delberg Engineering chairperson Edwin Dreyer tells Engineering News that tender applications for 60 locomotives of the R51-billion project opened in January this year. “We submitted the tender application for the 60 units in February. Alstom, of France, contacted us and we discussed the 600 units mentioned in the accreditation application form. Consequently, Alstom informed Delberg Engineering that it had received the tender for all 600 units,” explains Dreyer. Delberg Engineering has been successfully audited by Alstom to verify that it has the technical expertise and financial security to carry out the project safely and on time. “Some of the aspects involved in the tender process include safety, experience, South African Bureau of Standards and International Organisation for
Standardisation (ISO) ratings, machinery and equipment, as well as financial security,” says Dreyer, noting that Delberg Engineering is ISO 9001accredited. He highlights that securing local content was one of the biggest challenges in winning the tender, as certain components, such as heat-treated steel, are not manufactured locally and need to be acquired either from local agents or directly from foreign suppliers. Meanwhile, he notes that two companies – pipebending specialist and namesake Delberg Engineering and metals trader Corrotherm – amalgamated in September 2013 to form Delberg Engineering.
French multinational rail solutions provider Alstom is the majority shareholder of the consortium, which will manufacture and supply 600 of Alstom’s new X’Trapolis Mega passenger locomotives and 3 600 coaches from 2015 to 2025. Each locomotive has 60 wagons.
“The merger enabled the company to compete for large tenders, such as those incl- uded in Stateowned freight rail company Transnet’s R307-billion market demand strategy to improve South Africa’s rail infrastructure,” notes Dreyer, who adds that a large sum has been invested in the company to ensure it does have the capacity to complete projects of this magnitude.
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Partnership to enhance local flooring industry “For the first time in South Africa, there is a partnership of companies that specialise in different aspects of flooring, which is focusing on providing the best flooring solution for the consumer. Traditionally, the flooring industry in the country is set up in such a way that, if someone knows something about flooring, a flooring business can be started, which often posed challenges pertaining to quality and services.
Three flooring solutions providers, namely concrete equipment manufacturer and supplier group of companies Pan Mixers South Africa (PMSA), flooring concept solutions provider Rock Solid Flooring and international construction solutions provider TAL XCalibur, have partnered to develop the X-Tech StoneFlow flooring concept. The X-Tech StoneFlow is a concrete flooring solution that is laid on the floor surface and can be ground and polished to a deep shine within hours of it having been laid. The solution, comprising 25 kg coloured matrix and 10 kg coloured aggregate, is mixed with water to create a 13 mm to 20 mm flooring overlay. Speaking to Engineering News, the consortium says they want to offer the South African consumer a flooring solution that can be accessed in one area while developing the country’s floor-solutions development capabilities. “Now, with the X-Tech StoneFlow, consumers will receive high-quality products and services from experienced flooring professionals,” says PMSA marketing and sales manager Quintin Booysen. Further, the partnership will grow each company’s market reach and clientele base, TAL X-Calibur technical executive Obert Rutako says. He adds that the partnership creates a triangular referral system spread threefold wider that will benefit the partners and help the businesses reach into the market. The partnership entails that HTC, through Superb Flooring Systems – which is locally marketed through PMSA – provides the specialist machinery used in the grinding and polishing process. TAL-X Calibur manufactures the concrete flooring locally, using local materials. “Competitors import similar products, which gives us a price advantage, as we do not ship concrete stones around the world and enable the creation of more job opportunities in the manufacturing of the product,” states Booysen.
Meanwhile, Rock Solid Flooring is responsible for the marketing and training of applicators that use the XTech StoneFlow solution. Rock Solid Flooring, using the HTC diamond cleaning twister system, also provides training on the cleaning and long-term maintenance of the floor. X-Tech StoneFlow The X-Tech StoneFlow is a high-performance, quicksetting specialised concrete flooring system that offers a deep, shiny finish. Booysen says the system can be laid to restore dilapidated floors; it can also be laid on the floors of newly built buildings. “X-Tech StoneFlow is ready for grinding within seven hours, as it reaches 25 megapascals (MPa) within that period, compared with normal concrete solutions that have a waiting period of up to four weeks between laying and grinding,” Booysen notes. Moreover, when installation is complete and the floor is ready, it is extremely hard wearing and it can reach 60 MPa in hardness. The X-Tech StoneFlow is available in nine colours that will act as a base matrix colour. “Another advantage of the system is that it can be custom-made to suit any chain store’s look and feel throughout the country and customers can also mix different colours and come up with a unique look,” says Superb Flooring Systems technical sales representative Richard Hugh. An X-Tech StoneFlow floor is easy to clean, as only water is required and an HTC StoneFlow chemical makes the floor stainless. Projects Hugh adds that the consortium completed the installation of X-Tech StoneFlow floors at Southern Sun Hotels’ Elangeni and Maharani hotels in Durban, KwaZulu-Natal. Further, Fulcrum Flooring – the contractor that is the X-Tech StoneFlow concept’s approved applicator – has installed the X-Tech StoneFlow floor at Tile Africa’s store in Silverton, Pretoria. Fulcrum Flooring on-site director Sydney Little says the flooring system is ideal for stores such as Tile Africa, as fork lifts can drive around without causing any damage to the floor. Hugh concludes that there are plans to take the XTech StoneFlow to other Southern African countries, after sufficient presence has been established in the South African market. “Angola, Zimbabwe and Namibia have shown interest in the system.”
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New entrants could impact on project management trends Engineering, procurement and construction management (EPCM) services provider Tenova Bateman says several relatively new entrants in Africa’s mining sector may play a pivotal role in evolving project management trends. The most influential participant is China, a country becoming more prominent in Africa, Tenova Bateman sub-Saharan Africa project execution senior GM Stehan van der Post tells. He explains that Chinese miners’ approach to consulting with contractors and implementing projects, especially in sub-Saharan Africa, is markedly different to the approach of the mining houses that dominated the market in the past. “We gained valuable experience with Chinese miners during projects we have been involved in over the last three years in countries such as Namibia,” says Van der Post. He notes, however, that miners who are new to Africa and who are trying to establish themselves on the continent always present a “unique challenge”. He adds that Tenova Bateman accommodates changing market requirements by focusing on clients and providing tailor-made solutions. “It is necessary for project houses to be flexible, as they need to adapt to clients’ specific needs,” notes Van der Post, further pointing out that a rigid approach might discourage prospective clients who require a unique method of project management. Future of Project Management Van der Post notes that growth in the mining industry is currently slow, compared with historical trends.
services a project management company provides needs to be comprehensive, as should the depth and breadth of knowledge and experience that the company employs, to be able to effectively integrate the various elements of the project value chain to provide a single point of contact. “You do not necessarily have to have all the services under your own umbrella, but you certainly need to provide a single point of contact for the clients,” he says.
Tenova Bateman’s core focus is on building solid partnerships with all its clients to ensure objective transparency throughout the project’s life cycle.
The Key to Success Van der Post believes that an alignment of objectives between all project parties is key to a project’s overall success. “A good working relationship between the client’s project team and the EPCM’s project team will ensure proper alignment of objectives, resulting in less energy being spent on exhaustive efforts to manage a detailed contract,” he notes. Van der Post adds that major mining clients approach projects differently, compared with most midtier and junior mining companies in terms of project evaluation, depth of feasibility studies and capital available for projects, among other facets of project management. Major mining houses emphasise building the right business relationships by focusing holistically on a portfolio of projects and the project pipeline. “These mining houses require strong business relationships with the engineering and construction service providers,” he says.
The fact that the industry is “extremely competitive” does not help, he says, adding that many projects do not receive funding to proceed. “Given the shortage of new capital projects, a project management company needs to be clear on what it offers, and communicate that to market,” says Van der Post.
Identifying mature service providers is another key aspect of ensuring the success of a project, especially when dealing with complex projects, says Van der Post. With the assistance of corporate maturity assessments, the competence of EPCM contractors can be determined by assessing the quality of their work and expertise before commissioning them.
“An important part of ensuring that we develop the best client solutions is the innovation that we bring to our project through our flow sheets and design. We focus on developing solutions through . . . the most advanced technologies, always seeking to balance process efficiency with capital expenditure and operational expenditure requirements through fit-forpurpose solutions.
Funding Van der Post explains that newer compa- nies often face a stumbling block in the form of funding. “In the junior to midtier arena, assistance with project funding is impor- tant,” he says, adding that companies usually rely on external facilitation of funding to allow for feasibility studies and projects to proceed.
“Our approach to project implementation further enhances this by ensuring a high level of control over all the stages of a project, productive use of project resources and effective teamwork between ourselves, our client and our subcontractors,” he says. He adds that the need for external project management is definitely a growing trend from the owner’s perspective. Van der Post says the range of
“Tenova Bateman is active in this regard and there are various ways through which we can help secure funding for projects and feasibility studies,” he says. Besides the traditional financing providers, Van der Post says many governments are willing to provide
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R1-bn investment towards Transnet manufactured locomotive State-owned rail operator Transnet is dedicating about R1-billion of its R307-billion Market Demand Strategy (MDS) towards research and development for the manufacture of its own locomotives, Transnet group CEO Brian Molefe said at the company’s R50billion supplier announcement, in March. Print Send to Friend 00 He added that the investment would assist in developing its engineering arm, Transnet Engineering (TE), into an original-equipment manufacturer (OEM). “TE has established a dedicated research and development unit dedicated to this goal, at the Council for Scientific Research (CSIR), in Pretoria,” he pointed out, adding that Transnet has signed a cooperation agreement with the CSIR. “We have a team of engineers working on a Transnet locomotive and we believe that by the end of the MDS, we will have sufficient knowledge to become an OEM,” Molefe asserted. Transnet is also making a R300-million capital investment towards upgrading TE’s facilities in Durban and Koedoespoort, in Pretoria. “This investment will assist us in developing TE into an OEM, specifically focused on assembling and manufacturing locomotives for the rest of Africa,” said
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Transnet Freight Rail CEO Siyabonga Gama. Molefe commented that Transnet is dedicated to developing South African rail capabilities, which will enable it to participate in the development that will take place in the African railway industry. “The significance of today is that we have identified partners that will assist us in becoming an OEM for future sales to the rest of the continent and to other parts of the world,” he enthused. He added that Transnet is already an internationally recognised brand through its past rail equipment sales to Australia, India and countries in South America and the Middle East.
Major infrastructure construction completed at The mixed-used lifestyle estate, Steyn City, located along the Jukskei river, in Johannesburg, has invested significantly in infrastructure, some of which will serve the surrounding areas and the estate, which will launch next year. The more than 800 ha estate, which is the vision of local businessperson Douw Steyn and developer Steyn City Properties CEO Giuseppe Plumari, is designed to provide secure country living with convenient access to city amenities. The upgrade of a bulk sewer pipeline, which runs from the surrounding Dainfern area to a new pumpstation, at a cost of R73.9-million, has been completed. The new bulk and sewer pumpstation will allow for the future decommissioning of the existing pumpstations in Dainfern and Beverley. Steyn City Properties has also constructed a new R35-million water reservoir on the north-eastern segment of the development, which will store up to 30 Ml of water and will supply Steyn City and surrounding areas. Steyn City Properties has partnered with government to expedite regional infrastructure upgrades, including the upgrade of William Nicol drive (R511), of which about 6 km will be transformed into a dual carriageway, with future plans to extend this to the N14. In response to residents’ requests for improved safety and transport areas, cyclist and pedestrian lanes were constructed from Mulbarton street to Erling street, along the R511. Plumari tells Engineering News that Phase 1 of the development cost R6-billion and consists of the construction of the infrastructure, 800 residential units and parklands. “We want to offer the best lifestyle one can live. Road infrastructure is the main cause for nonsafe community living and we want this development to be
the catalyst in developing an estate where people and walkways form the backbone of how they live with their neighbours. We have created a network of interlinked parks and open ecological areas, comprising more than 400 ha, all of which border the homes of the estate,” he says. The residential options for the estate will include more than 8 341 apartments, 731 cluster homes, 818 freehold houses and 120 retirement-village units.
MEGALITRE RESERVOIR Steyn City Properties has constructed a new R35million water reservoir on the north-eastern segment of the development, which will store up to 30 Ml of water
A wide range of retail outlets, restaurants and private schools, as well as crèche, medical, recreational, health, fitness and sporting facilities, will be available on the estate. It will also include 90 000 m2 of office park space. Newly structured gas infrastructure, with two bulk gas-storage farms, will be implemented to provide a comprehensive piped gas service for residents of the Steyn City estate. Solar energy will also be available as an option to homeowners who prefer to reduce their carbon footprint. Energy efficient lighting schemes using low-energy light-emitting diodes for streetlights and landscape lighting will also be implemented on the estate. With an emphasis on going green, half of the development will be wooded parkland, and eight onsite nurseries and a propagation laboratory have been established. Further, at least 80 000 trees have thus far been planted around Steyn City’s 18-hole Nicklaus design championship golf course and estate, with more set to be planted before the launch. To date, the project has created more than 9 500 jobs on site, with local skills procured from the Diepsloot and Cosmo City areas. Training courses in plastering, bricklaying and paving are also offered on site to ten workers at a time, over two months, after which they can secure a job at the development.
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Alert Steel losses increase as difficult trading conditions persist During the period under review, Alert Steel introduced hardware and building supplies together with steel and steel-related products to offer customers a complete range of products required for the building industry.
“The trading for the six months under review continued to be challenging. The difficult trading conditions experienced in the first half of the calendar year in Limpopo, where the group has a significant presence, continued in the second half of the calendar year,” Alert Steel said. It added that the group’s split between cash business and credit continued to grow with the cash business having increased to more than 65% of the group’s R404.9-million revenue.
Other additions to property, plant and equipment amounted to R23-million and included relocating the company’s distribution centre to accommodate the increase in stockholding, refitting most of its major stores with new shelving to accommodate the new product ranges, as well as the opening of new stores.
A slowdown in Alert Steel’s contracting and credit business had been observed during the period as a result of tighter credit control.
Meanwhile, sales, distribution and administration costs increased by 19% to R115.6-million during the period under review, including a R5.7-million impairment of goodwill, R2.3-million in retrenchment costs, R1.6-million in professional fees – relating to corporate actions – and increased depreciation on property, plant and equipment of R2.3-million.
Further, Alert Steel had changed its focus from rolling out containers to concentrating on the opening of express stores to accommodate the reintroduction of hardware and building supplies into the group.
“The [reduction of] monthly overhead costs continue to be a key focus area to ensure that Alert Steel becomes the lowest-cost supplier in the industry,” the company said.
In line with this decision to expand the product range, the group acquired all the trading stock from building and hardware supplies retailer Build Kwik Wholesalers to the value of R23.6-million during December 2013.
Further, Alert Steel stated that, by April 2015, it intended to develop a further 28 stores in the greater Johannesburg and Pretoria areas.
The full benefit of these additional stores was expected to come to fruition during the next six months. This acquisition also resulted in an increase in the group's inventory holding to R143.6-million, Alert Steel noted, adding that it had also acquired certain fixed
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assets from Build Kwik amounting to R6.1-million.
“These areas have an added benefit of limiting distribution costs as they are very close to the distribution centre in Pretoria. The result is that these additional stores will have a positive effect on the financial position of the company,” Alert Steel stated.
Engineering components distributor installs new, low-maintenance cable carrier system “This project in Newcastle, KwaZulu-Natal, entailed the removal of a worn, damaged cable carrier and the installation of a new 8.28 m steel Tsubaki Kabelschlepp cable carrier system, which is designed to withstand highly corrosive environments,” says BMG Kabelschlepp product manager Mike Owens. “This lubricant-free Kabelschlepp system, which features self-cleaning links, has increased geometry that prevents blockages of the stroke system, caused by dirt deposits when the cable carrier is in motion,” he says, add- ing that this enhances productivity and reduces maintenance breaks and costly downtime. Other advantages of the cable carrier system include high load-carrying-capacity, high-impact resilience and no maintenance, Owens adds. The new steel cable carrier system, which meets the 50-kg-a-metre load-carrying-capa- city requirement, runs below the straighten- ing mill and withstands about 5 t of mill scale depositing on the carrier and surrounding bay in a 24-hour period. The tandem design of this steel cable carrier has three sidebands, with solid aluminium, machined to suit the cable framestays. Features of this Tsubaki Kabelschlepp cable carrier system include 2-m-asecond acceler-ation and a running speed of 1 m a second. Continuous thermal loads of up to 600 °C are possible, Owens notes, adding that the system is designed to last ten years.
Further, he comments that BMG has installed the system at steel and aluminium producers, and that BMG installed seven systems last year. The Kabelschlepp range also includes emergency cable carriers (ECCs), which are designed to prevent downtime and reduce repair costs, he notes. The ECC series, which detects a blockage in the travel lengths of cable carriers, automatically switches the system off to prevent damage to the entire cable system, he explains. In addition to the emergency stop function, the ECC series also offers a bridging safeguard for the braking distance in both directions of travel. Once the blockage has been removed, the system is easily recoupled and ready for operation immediately, Owens says.
Engineering components distributor Bearing Man Group (BMG) recently completed the installation of a new steel cable carrier system, of undisclosed value, at a straightening mill of one of the largest steel producers in Africa.
He notes that this safety system is designed for applications with long travel lengths in ports and steel works, as well as cranes, com-post, coal or raw material conveyor systems. The steel industry market’s reaction to the new cable carrier system is “pleasing”, owing to the ease of the system’s installation and its low continuous maintenance, he concludes.
BMG’s Tsubaki Kabelschlepp range, which extends from standard individual components to complete system solutions, is enhanced by custommanufactured systems to meet exact requirements in diverse sectors, Owens says, adding that these systems are available in heavy-duty steel and corrosion-resistant stainless steel, as well as in durable, light-weight plastic materials.
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