Supplychain Digital - May 2015

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SHARED SERVICES In Healthcare Procurement THE LOGISTICS OF FASHION Connecting the world one stitch at a time

Special Feature

ARGOS

Pioneer of modern distribution TOP10 Global Rail Networks

share happiness

EDITOR’S COMMENT

Innovation & ingenuity the May issue of Supply Chain Digital magazine. This month we showcase leading digital retailer Argos on the front cover. The company has continued to move forward by coupling energy efficiency with optimum delivery frequency, and we interviewed two executives to find out more.

There are some really nice features this month, including a neat piece on the logistics of fashion from FedEx Express and how small and medium enterprises are utilising the global courier in order to grow. I had a one-on-one chat with Simon Murphy too, whose company NHS Shared Business Services is aiming to transform procurement at the heart of healthcare.

We also have the usual Top 10 article, which this month centres on the foremost nations in regards to the scope of its rail networks. Thanks and as ever, I hope you enjoy reading our business publication.

HELLO AND WELCOME TO

Enjoy the read!

Sam Jermy

Editor

sam.jermy@wdmgroup.com 3

CONTENTS

Features SUPPLY CHAIN MANAGEMENT

The Logistics of Fashion: Connecting the world one stitch at a time PROCUREMENT

6 12 How NHS SBS operates at the heart of healthcare

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90

Argos

Air Botswana PAPCO

TOP 10

20 4

Global Rail Networks

May 2015

72

Company Profiles EUROPE 30 Argos

MIDDLE EAST

Aldrees Petroleum & Transport Services Co

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50 Aldrees Petroleum & Transport Services Co

CANADA 64 Andy Transport

USA 72 PAPCO

AFRICA 82 AFRAA 90 Air Botswana 100 Transnet 148 Nigerdock

Andy Transport

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148 64

Nigerdock

AFRAA

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S U P P LY C H A I N M A N A G E M E N T

Writ ten by: DAV I D PO O LE , M D U K SA LE S , FEDEX EXPRESS Edited by: SAM JERMY

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SUPPLY CHAIN MANAGEMENT

Wool and the Gang is just one SME being helped by FedEx Express

THE VALUE AND prestige of the UK’s fashion industry is not to be underestimated. It is one of very few resilient sectors to have fared well during the recession, emerging stronger than ever in 2014 to contribute £26 billion to the British economy.

Coupled with fashion and apparel’s combined support for supply chain industries this figure has increased by 8

May 2015

over 20 percent in the past five years.

Significant growth in retail e-commerce has served to boost business on home soil as well as strengthen the UK’s relationship with overseas consumers, culminating in £800million worth of exports each month. This ‘fast fashion’ requires flexibility in the supply chain to deliver quality at an affordable price, yet the

T H E L O G I S T I C S O F FA S H I O N

complexities involved in the logistics of fashion are often downplayed. The sourcing or import of raw material has to be considered first, followed by decisions concerning lead times and development calendars.

Then comes the manufacturing process itself, with delivery and distribution complete with customs navigation finalising the chain.

To help, FedEx has put together its top five tips on fashion and textile exporting, offering best practice advice and guidance to make the most of international opportunities.

1. Take global expansion one step at a time As Fashion Week season approaches, the world’s eyes will be firmly fixed on Great Britain, and with 65 percent of international consumers actively seeking out British goods online when internet shopping, therein lies great opportunities to reach new customers. However, there is no such thing as a ‘one size fits all’ strategy when looking to enter multiple overseas markets. Each one has its own customs, regulations and code of etiquette; all of which has to be navigated appropriately. In

Author David Poole, of FedEx Express preparing for Fashion Week season, your export strategies for New York, Milan and Paris should all vary, taking into account the different rates and restrictions for each country.

2. Do your research Charges can apply when transporting apparel at both the point of export and the point of import into the destination country. It is important that you are aware of the transaction costs involved at both sides and can plan accordingly. Remember, other 9

SUPPLY CHAIN MANAGEMENT EU countries are widely regarded as being easier to trade with compared to countries outside the EU, as the goods are in free circulation. By being part of a Customs Union, the UK benefits from restriction-free trade with other EU countries. If you are exporting clothing to the EU that has been processed from imported EU raw materials or goods, you may also be able to obtain additional relief from customs duties. Consider where your goods are made and how much is EU origin, as you may get duty relief from other “preferencegiving” countries outside of the EU that favour imports from this area.

3. Be aware of customs challenges The transportation of clothing, requires specific restrictions that need following. Firstly, a business needs to detail the gender for which the garment is designed as this will impact on the duty rate when transporting across borders. You will also need to have correct accompanying documentation detailing whether the goods are knitted or woven, in addition to their fabric content in percentage by weight. The country of manufacture 10

May 2015

also needs to be divulged with some countries, namely the US, requiring the manufacturer to be identified via a code or the manufacturer’s full name and address.

4. Keep clear on cost for good customer service Larger companies have been known to absorb customs charges; keeping delivery prices to a minimum and customers happy. Working closely with your logistics provider to make sure parcels come complete with the correct shipping documentation will help you navigate what can be a tricky process. Make sure any clothing or raw materials are labelled in line with the Harmonised Coding System which classifies traded products with names and numbers to ensure quick

T H E L O G I S T I C S O F FA S H I O N

and easy customs clearance.

5. Be realistic about what you can offer The size of the UK means you can pretty much guarantee next day delivery nationwide, but getting your product into far-reaching countries safely and securely will arguably take more time. As the industry continues to grow, we are seeing increased demand on the fashion supply chain as brands compete with each other to get their products from catwalk to customer as quickly and efficiently as possible.

Speak to your logistics provider who can advise on likely delivery times based on individual country

tariffs and border requirements. The UKTI is also an invaluable source of information for commodity codes and other measures applying to exports using its free online UK Trade Tariff.

For the thousands of people attending this month’s Fashion Week shows, the majority will not fully appreciate the lengths taken and miles travelled to get the clothes ready for public display. In an industry where as much as 80 percent of a business’ total expenditure goes into the supply chain, agile distribution is critical.

Whether transporting apparel for an event of this nature or to retailers around the world, partnering with a trusted logistics provider should be a top priority for those in the industry looking to capitalise on global opportunities.

At London Fashion Week alone, shows are streamed live to 160 countries worldwide and over ÂŁ100 million worth of orders placed. With such big business readily available for those that have the right logistics support behind them, considering some of our advice points will ensure budding designers and brands make a truly global fashion statement all year round.

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PROCUREMENT

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May 2015

HOW NHS SBS OPERATES AT THE HEART OF HEALTHCARE The organisation which processes ÂŁ1 billion annually, partnered with Tradeshift and is now transforming procurement, finance and accounting functions from the inside W r i t t e n b y: S A M J E R M Y

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PROCUREMENT AT TIMES OF extreme austerity in the United Kingdom, the public sector has taken a financial battering from central government. The emergency services has been no different, and when funding is cut to such critical operations, the wrong kind of cost-cutting can ultimately end up endangering lives.

This is where the back offices functions then come to the fore in the healthcare sector. But innovative and forward-thinking approaches are needed in order for the National Health Service (NHS) to remain costeffective, lean and most importantly efficient going forward. Wild and frenetic slashing of resources can have a destabilising and catastrophic effect on any organisation.

Therefore, the rise to prominence of NHS Shared Business Services is a welcome one for many. NHS SBS as a company started as a joint venture between the Department of Health and Sopra Steria, who both own 50 percent.

As the organisation celebrates its 10th anniversary, Simon Murphy who is Director of Finance & Accounting, makes a good case for a more co-ordinated approach to procurement and related facets. He 14

May 2015

An example of the Tradeshift Dashboard platform

‘We provide a platform and services for all the commissioning organisations and 30 percent of the provider organisations in the NHS’

H O W N H S S B S O P E R AT E S AT T H E H E A R T O F H E A LT H C A R E

said: “Since we started in 2005 we have grown to the point where we’re now providing Finance & Accounting, procurement and employment services to the NHS market.

“We provide a platform and services for all the commissioning organisations and 30 percent of the provider organisations; so those being the hospitals, ambulance and mental health trusts for example and the commissioners are the clinical

commissioning groups which to an extent replaced primary care trusts in 2013. They are dotted around the UK and buy services from those hospitals.”

There are over 300 NHS organisations currently using the finance and accounting service, and NHS SBS collects well over £1 billion a year through its system. It collects around £14 billion of debt and 7.5 million invoices are processed annually.

In short, there is no other group 15

PROCUREMENT operating on this scale within the NHS. Coordinated approach Murphy states the reason procurement, finance and accounting as well as employment services were aligned together was because NHS SBS believed and still believes all are part of the same ecosystem and putting them together would give it real ability as a National Health Service, taking

power back from the suppliers. “In terms of company goals, we obviously need to remain commercially competitive to exist but really we are here to save the NHS money and to improve its services; one of the best ways to achieve this is through effective procurement. “So for many organisations we operate full procurement, buying, catalogue management,

Introduction to Tradeshift software

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May 2015

H O W N H S S B S O P E R AT E S AT T H E H E A R T O F H E A LT H C A R E

the transactional procurement for requisitions and so on. We give them the IT system on which end users will raise those requisitions and access the catalogues, and we negotiate the contracts that go into those.”

Through finance and accounting side, this is where the partnership with Tradeshift comes in. Via the invoices sent in and the purchase orders which then go out, NHS SBS has a huge amount of data on what is being bought by various different organisations at what price and from which suppliers.

The partnership can help NHS utilise data better and therefore make better procurement decisions based on the use of the shared business services.

It has an unrivalled view on what the NHS buys and a unique ability to help them buy it more effectively.

Forward-thinking However, this does not mean new business opportunities naturally present themselves to NHS SBS. A business case has to be made to each of those provider organisations on an individual basis to garner their interest.

Murphy said: “That’s why we went into procurement, we felt we already had half the story. With the

NHS SBS collects around £14 billion of debt and 7.5 million invoices are processed annually.

‘In terms of company goals, we obviously need to remain commercially competitive to exist but really we are here to save the NHS money and to improve its services; one of the best ways to achieve this is through effective procurement’ 17

PROCUREMENT expertise, systems and data we’ve got we feel we have a pretty unrivalled position in the market. So we go to them, understand how they currently operate, where opportunities for improve are and then pitch a price to them and quote them saying this is how much we think we can save you based on what it currently costs you.

“We have the size, scale, shared Tradeshift platform, good processes and this is of course our core businesswhereas it is nowhere near the hospital

trusts core business; theirs is of course saving lives and making people better. Instead of having hundreds of organisations trying to solve the same procurement and buying problems, we can solve it once and share that benefit out both in terms of the price but also the benefit of advanced systems and processes we have.”

“Any organisation at any point can look around at the market, but we try and make them understand the benefits of a shares services platform.

Tradeshift Dashboard offers flexibility for use with mobile devices 18

May 2015

H O W N H S S B S O P E R AT E S AT T H E H E A R T O F H E A LT H C A R E

We can afford to do it at once and then it works out as cheaper per organisation as opposed as it would have done if they’d done it themselves.”

The NHS is split many ways and each entity is able to deal with their supplier on a standalone basis. SBS is trying to consolidate those conversations and use available data to then provide each organisation with much more power by aggregating that demand.

Murphy correctly points out the more organisations using a contract, the

more money flowing through it and the supplier is happier meaning NHS SBS can negotiate and demand greater benefit with better price per unit.

He concluded: “We’re trying to remove power from the supplier and place it back into a much more powerful NHS procurement function where we’ve got lots of organisations in the same stable. We are very keen to stick to our principles and vision, we’re here to improve quality and save NHS money.”

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TOP 10

Global Rail Networks We have detailed the ten foremost nations in regards to the scope of its rail network Writ ten by: SAM J E RMY

20 May 2015

THE RAIL FREIGHT industry is currently enjoying somewhat of a renaissance after a period of decline, but on a broader scale the size and breadth of a country’s rail network for passengers and freight is a continuing source of national pride. Therefore we present to you our Top 10 collated with the latest available data, which means the track length are meant as a best possible guide only and not purported to be exact.

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TOP 10

Brazil 28,500km Not quite as comprehensive as Argentina, but Brazil stills comes in as the second biggest rail network in South America. It has very good links throughout all regions of Brazil as well as helpful connections to Uruguay, Bolivia and of course Argentina too.

Connecting the continent has been pivotal in optimising trade and freight arrangements between the core South American nations, especially in regards to the agricultural sector.

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22 May 2015

9 France 30,000km

The second largest Eur is largely operated by th railway company, SNCF network has been unde accepting all agreemen governing body to conf connections. But in rea shadow of what it was i

ropean rail network he French national F. Since 2007, the er EU jurisdiction, nts under the form to continent-wide ality, rail freight is a in its 1980’s pomp.

GLOBAL RAIL NETWORKS

Argentina 37,000km In 2012 the government in Argentina announced that it was renationalising large parts of the freight industry across the country, in-keeping with the wider rail system for passenger services. With Buenos Aries at the core of the entire network, the country’s network is widely regarded as one of the most sophisticated for commuters and freight looks set to follow that trend.

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GLOBAL RAIL NETWORKS

Australia 39,000km Pacific National, QR National and Genesee and Wyoming Australia are the three main rail freight network operators who make up the majority of the nearly-40,000km extent of tracks in Australia. The Australian railway network does not have a highspeed line yet. One connecting Brisbane, Sydney, Canberra and Melbourne is proposed to be built costing approximately $114bn, but the first phase of the 1,748km network will not be realised before 2035.

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Germany 42,000km Carrying more than 415 million tonnes via Deutsche Bahn alone, Germany’s trademark rail company dominates the entire chain of routes around the country, from both a commuter and freight perspective. DB control 80 percent of the total freight traffic and 99 percent of the long-distance passenger traffic. Known for its efficiency, Deutsche Bahn is also a key operator in Europe as a whole, connecting countries from its central location.

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TOP 10

5 Canada 48,000km The first of only two privatised rail networks in the world, Canada’s system operates in a similar fashion to Australia’s with a relatively small population-to-network ratio. This makes the network prime for freight operations via the Canadian National and Canadian Pacific Railway lines which cross much of the beautiful North American terrain.

26 May 2015

India 65,000km

In stark contrast to Can of network in India is th on a population scale w people living per kilome Despite this though, the still transport an incredi tonnes of freight per an the whole country as w into Pakistan, Banglade

GLOBAL RAIL NETWORKS

4

nada, the 65,000km he most congested with nearly 19,000 etre of track. e country’s lines ible 921 million nnum, covering well as venturing esh and Nepal.

China 100,000km

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China’s rail network, with a route length of about 100,000km, ranks as the third biggest rail network in the world. The extensive network, operated by state-owned China Railway Corporation, carried 2.08 billion passengers (the second highest after Indian Railways) and 3.22 billion tonnes of freight (the second highest after the US railway network) in 2013. The huge amounts of investment to increase the network in China over recent years was a consequence of a need to increase freight capacity in the country.

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TOP 10

2 Russia 128,000km The Russian rail network has been hailed as an economic wonder since the 19th century, and it continues to be a world leader in that regard. Because it is much more sparsely populated than China and the USA, the rail freight in Russia is transported over much longer distances. It is one of the most freight-dominant railways in the world, behind only Canada, the United States and Estonia in the ratio of freight tonne-kilometres to passenger-kilometres.

28 May 2015

GLOBAL RAIL NETWORKS

USA 250,000km Operating in a similar fashion to Canada’s network, the USA’s rail system is the only other privatised network in this countdown and again, consists mostly of freight shipments rather than passenger services. Continuously under pressure from other modes of transport, the commuter world seems to have left the old-timer behind but in supply-chain terms, the US’s rail network is still streets ahead of the rest of the world.

Boasting the longest average haul of any country, even ahead of Russia, America’s domestic routes extensively cover all states, and many operate on countrywide voyages. Will the US rail network ever be toppled by another country? Not any time soon, by this reckoning.

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Argos Pioneer of

modern distribution Written by: Sam Jermy Produced by: Richard Durrant

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ARGOS

Leading digital retailer Argos has continued to move forward by coupling energy efficiency with optimum delivery frequency

One of Argos’ many loading bay areas

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May 2015

A

rgos has become a pioneer of modern distribution by being the first company in the UK and Ireland to order new gaspowered Euro 6 articulated trucks. Now the online and high street retailer, with 755 stores and more than 96 percent of the population within 10 miles of a store, is set to capitalise on being a market frontrunner.

Partly in a bid to cut down carbon emissions throughout the organisation, from the type of vehicles used to general energy consumption, five new environmentally friendly trucks were ordered from Swedish commercial automotive manufacturers, Scania.

Complying with Euro 6, Europe’s latest clean exhaust emissions standard, the vehicles can run completely off biomethane gas, and release up to 70 percent less carbon dioxide compared to their diesel counterparts.

David Landy, Argos Fleet Manager, said: “These trucks offer a glimpse into the future of the UK haulage industry, and as one the UK’s biggest retailers selling around 50,000 different products, we’re delighted to be leading the way in getting products into our stores and customers’ hands in an environmentally friendly way.”

The new gas trucks can travel up to 350 kilometres without refuelling, and are now based at Argos’ Magna Park, Lutterworth distribution centre.

The introduction into service of these vehicles also represents a major milestone in a project created by Innovate UK (formerly Technology

S U P P LY C H A I N

Key Personnel Aerial shot of Magna Park

Strategy Board) to assess the benefits of gas to the UK haulage industry.

A key aim of the project has been to introduce gas-powered vehicles into service at Magna Park in the run-up to a publiclyaccessible gas refuelling station scheduled to open on site later this year according to CNG Services, which leads the project in collaboration with Gasrec, Argos, DHL Supply Chain, Culina Logistics and Eddie Stobart.

It is reported that the introduction of Argos’s new gas-powered Scania trucks will be transformational in terms of carbon dioxide emissions and their impact upon air quality in the coming years. Many other companies in the supply chain industry are expected to

Phil Hull Distribution Director

David Landy Argos Fleet Manager

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ARGOS

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May 2015 enquiries@pofm.com

ARGOS

S U P P LY C H A I N

follow suit for instance.

Remaining agile In the financial year to February 2015, Argos sales were £4.1 billion and it employed some 29,000 people across the business.The company is part of Home Retail Group, the UK’s leading home and general merchandise retailer, which also owns popular firms Homebase and Habitat.

The nature of the Argos business means demand is driven by seasonal events such as Mother’s Day, Easter, Spring bank holiday and of course Christmas. Product popularity also fluctuates dramatically due to weather so in summer, BBQs and garden furniture naturally need to be available in high volumes. Whereas leading up to the festive season, technology

SUPPLIER PROFILE

4.1bn Turnover made by Argos in its last financial year

P&O FERRYMASTERS

The Contract Logistics division at P&O Ferrymasters is a European leader in tailor-made transport management solutions. Purposedeveloped software supports a team with vast multi-industry 3PL/4PL experience – a unique formula for sustainable supply chain improvements. Argos has been a customer ever since moving to Ireland in 1996. The dedicated P&OFM service provided by Dublin-based personnel includes a transhipment facility at Dublin port – ensuring rapid turnaround of trailers for onward delivery or shipping – and optimised multi-drop scheduling with minimum cage handling. Service back-up is available from the company’s own-assets fleet, while continual improvement is fostered by a knowledge-sharing partnership.

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ARGOS

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May 2015

We dedicate teams of experts who are responsive to all your business needs and challenges.

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ARGOS

S U P P LY C H A I N

products such as HD Televisions, smartphones and iPads prove popular with customers.

Phil Hull, Distribution Director at Argos, said: “Our agility as a business is crucial and key to our ongoing success in the UK retail space. We are very much working on a seven day, 24/7, shortest lead time possible basis to successfully and swiftly complete store replenishment.

“Essentially, the things we are working on are geared towards improving product availability to ensure we are giving the best experience possible to our customers. Having said that, we are also cleverly managing our inventory level to preempt seasonal demand peaks, so that we are not tying up excess capital in unused stock in the warehouses and distribution centres.”

“We are very much working on a seven day, 24/7, shortest lead time possible basis to successfully and swiftly complete store replenishment.”

SUPPLIER PROFILE

- Phil Hull, Distribution Director at Argos

NORBERT DENTRESSANGLE

Description of your Services: Norbert Dentressangle is an international player in logistics, transport and air & sea freight with 42,500 staff and a presence in 25 countries. Norbert Dentressangle develops high added value solutions in its three sectors of activity on the European, American, African and Asian continents and places sustainable development at the core of its business. The company offers a complete range of supply chain services to retailers and manufacturers, including dedicated and shared-user warehousing and transport, reverse logistics and asset management, temperature controlled logistics, e-fulfilment solutions and freight forwarding.

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ARGOS

A new Euro 6 gas-truck at the nearby filling station

“Our initiative is to carry on reducing the CO2 footprint over the kilometres, so that means using bigger trailers to fit more products in” – Phil Hull 38

May 2015

Lean and green Landy recognised how the prominence of green, environmentally friendly projects could affect the industry as a whole. Although he stated as far as gas mileage with the new Euro 6 trucks goes, it is not just about reducing kilometres on the motorway but rather reducing the overall carbon footprint of the organisation.

He said: “With the fleet, our initiative is to carry on reducing the CO2 footprint over the kilometres, so that means using bigger trailers to fit more products

S U P P LY C H A I N

in, and they are generally light in weight so therefore the payload is not an issue. Subsequently we went for as many of the new semi-trailers as we can as that particular vehicle type, at 15.65 metres, is able to accommodate our needs.

“We can now start to deliver more product per litre of fuel used and that’s what the aim of the game is. That’s what makes you more efficient, filling the cube up as much as you can with more and more product and less fuel to do it.”

The firm is also looking at utilising a range of

One of the new models

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ARGOS

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Our Services ISM provide nationwide services to the UK’s largest warehouse, production, car park and retail sites, including Argos At ISM we understand that first impressions last and we make sure that your site is well maintained, clean, safe and secure Our philosophy is simple we provide high quality services at the right cost so our customers can concentrate on their core business From Industrial Cleaning Services, Waste Management/Recycling, Security, Building Maintenance and Grounds Maintenance to reception and help desk operation contact us today for a free site services quotation

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ARGOS

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urban double-deckers going forward, because where it has restrictions on delivery access, especially with older stores, the company can usually run the same length of stock on another deck, so again Argos can go out with more products and therefore reduce stem mileage.

Scania has stated its delight that Argos has become the first UK operator to put its dedicated gas-powered trucks into operation. This, together with an ever-developing fuel-supply infrastructure, represents a major step forward in terms of combating emissions of greenhouse gas, the truck manufacturer said in a statement.

Thinking smart Another major decision that has been implemented recently is the way product

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ARGOS

Argos have a return and refurb space of 70,000 sqf

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May 2015

repair and refurbishment is handled. Prior to summer 2014 Argos operated a refurbishment and repair service for technology products through a network of third parties. This network was serviced from the organisation’s central returns operation near Burton-upon-Trent, with movements between the operations before finally being shipped to the eBay/Clearance Outlets which Argos has in place for sale.

Following an assessment of the whole operation Argos management concluded that refurbishing products, including non-technology, within its own returns site would have significant benefits, given the scale of the operation and economies of scale this would give the company.

The key Argos benefits being the leverage of

S U P P LY C H A I N

the returns site space with 70,000 square foot made available and a better returns management operation; handling is minimised with stock only handled once before despatching for sale too.

Inherent efficiencies are taken advantage of which reduces potential damage or loss in transit, and inventory levels are managed well by mobbing to a weekly production model as opposed to batch processing at remote locations.

Control also improved with stock on site and on core inventory systems with enhanced visibility; and finally product quality feedback gives Argos an opportunity to improve insight on customer/ product issues and relay this information back into Quality Assurance and buying teams.

Phil Hull said: “In deciding how to implement our new onsite refurbishment service we recognised we would require expert support and selected Servicecare, part of Clipper Logistics, as our refurbishment partner. Working together Servicecare we established a trial ‘implant’ operation within our returns operation commencing in August 2014. This initial pilot has exceeded our expectations and has given us the confidence to accelerate our plans, and roll this out further this year.

“In summary we believe developing a centre of excellence for refurbishment and repair is a key component to our digital technology strategy and at the same time it will drive out costs and give us an opportunity to enhance our customer’s experience.”

“In summary we believe developing a centre of excellence for refurbishment and repair is a key component to our digital technology strategy and at the same time it will drive out costs and give us an opportunity to enhance our customer’s experience.”

- Phil Hull

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ARGOS

S U P P LY C H A I N

Landy added: “Our previous operating model meant products would go out to third parties, who would re-service it, bring it back into our supply chain and resell that through an eBay channel or other clearance channels.

“Now we’ve changed that. Where it is totally onsite refurbishment it has taken out the cost of working with third parties and moving products around the country, and the time that that product is spent out of circulation in that repair route.

So when coupled with our latest plans with Sainsbury’s it means product availability and customer convenience could not be better.”

Digital-led future Alongside the partnership with eBay, another business relationship has been put in place

SUPPLIER PROFILE

Ebay collection point in Argos

PARCELFORCE WORLDWIDE

As a leading provider of express delivery services, we are proud to have worked with Argos for over two years delivering items to thousands of their customers. Our extensive range of services ensures we can provide flexible secure express deliveries to meet all of their customers’ needs. Parcelforce Select offers tailored delivery and returns services, enabling customers to manage their parcels after they order and even change their mind on the day of delivery. This is backed by our reputation for Great British Delivery and exceptional quality of service.

Website: parcelforce.com

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ARGOS

Argos is partnering with both ebay and Sainsburys to bring extra choice and covenience to its customers

“Our new distribution model allows us to provide customers in any Argos location with a choice of around 20,000 lines within hours, regardless of the size or stocking capacity of the store.”

- John Walden, Chief Executive of Home Retail Group 46

May 2015

with Sainsbury’s supermarket. Argos, as the UK’s leading general merchandise retailer and Sainsbury’s, the UK’s second largest grocer, have teamed up to open 10 new Argos digital stores within existing Sainsbury’s supermarkets this year. This will bring extra choice and convenience to Sainsbury’s and Argos’ customers who will have access to the combined ranges in the convenience of a Sainsbury’s supermarket.

These new format digital stores will provide customers with a choice of over 20,000 nongrocery products which they can either buy instantly in store via tablets, or reserve online for easy collection within hours, the same or the following day. An extended range of around 40,000 products can also be ordered in store for home delivery.

Upon announcing this new way to reach the end user, John Walden, Chief Executive of Home Retail Group, said: “Our new distribution model allows us to provide customers in any Argos location with a choice of around 20,000 lines within hours, regardless of the size or stocking capacity of the store. This strategic capability has opened up options for a variety of new Argos stores and formats, and the possibility that we can now cost-effectively reach more customers and neighbourhoods with an Argos presence. I look forward to the results of the 10 store programme with Sainsbury’s and to understanding the full potential of this exciting opportunity.”

Argos continues to be the UK’s largest high

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YOUR SUCCESS DHL are global logistics leader and in the UK are provider of choice to 50 retailers. We have significant infrastructure and operational presence in the retail market, with a portfolio of services that spans everything from supply chain strategy and network design to in-store logistics. We work for a wide variety of retailers, from large grocers to convenience stores, e-retailers to department stores; DIY, electrical and furniture retailers.

No wonder so many leading retailers choose us as a trusted logistics provider.

Website: For more information about our business please visit www.dhl.com or scan our QR code

ARGOS

Aerial view of Argos site

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May 2015

street retailer online with around 121 million customer transactions a year through its stores and over 900 million website and app visits in the 12 months to February 2015. Customers can take advantage of Argos’ convenient Check & Reserve service available through its network of 755 stores across the UK and Republic of Ireland.

It is clear to see that Argos is not standing still and waiting for the future to come to it; rather it is embracing a new strategy that keeps the ongoing global digital revolution as a core consideration.

The company is also providing the opportunity for all levels of staff to build on their existing skills on the job, through initiating training in a form where employees are able to achieve an NVQ in lean or

S U P P LY C H A I N

continuous improvement.

Commenting on the organisation’s reasoning behind the move to invest in gas powered transportation, Landy pointed out it was important to be aware of the manufacturer’s own plans. He said: “Up until now you couldn’t buy a manufacturer-made gas lorry off of the production line: you would buy a normal diesel lorry and it would be converted by an after-market firm. For us, that suggested that if manufacturers aren’t behind it, should we really be doing it? Now Scania have this 100 percent gas truck coming off their production line. If they are supporting us in our green initiatives this way, it is probably the right thing to do now.” said Landy.

“This is the beginning of a sea-change I think, and a lot of fleet operators will start to take it much more seriously as people follow the lead.

But without people purchasing them Scania won’t produce the trucks. It has been a move together but I think it is the right one.”

Hull concluded: “As we see the volume of these environmentally-friendly vehicles start to come into the industry, the price changes, the market changes and it becomes more viable and realistic to many operators. We are proud to be pioneering this new form of distribution and we hope to continue to innovate for the benefit of our customers.”

It is clear to see Argos is set to stay ahead of the industry curve as it is closer to the end user than ever before.

Company Information INDUSTRY

SUPPLY CHAIN HEADQUARTERS

Milton Keynes, Buckinghamshire, UK FOUNDED

1972 EMPLOYEES

29,000 REVENUE

£4.1billion PRODUCTS/ SERVICES

Retail

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DRIVING PASSION: warehousing wisdom Written by: John O’Hanlon Produced by: Craig Daniels

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A L D R E E S P E T R O L E U M & T R A N S P O RT S E R V I C E S C O .

Aldrees is organized in two major divisions; the Petroleum Services Division and the Transport Services Division. The former owns and operates 478 petrol stations right across the kingdom, and is the retail arm of the business.

T

he Transport Services Division is one of the major customers as well as one of the principal service providers to the retail side, but operates as an independent company. It is one of the largest logistics provider in the country – and currently very much in expansion mode.

Mohamed Yousri Hanno is Assistant General Manager of Aldrees Transport Services. The company is involved with local freight deliveries, as well as deliveries to GCC & Middle East countries, he explains. With 1,340 tractor units and more than 2,700 road trailers in a huge array of different specifications, its primary concern is the movement of bulk cargoes between the kingdom’s industrial and petrochemical complexes, and its ports on the Red Sea to the Mercedes tractor units

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May 2015

S U P P LY C H A I N

west and the Arabian Gulf to the east. “ To give a flavour of the size of the operation it is worth looking at some of the major contracts Aldrees services. The largest customers include Saudi Arabia’s leading petrochemical company SABIC, for which Aldrees transports liquid chemicals in stainless steel tanks and solid petrochemicals like polypropylene, polyethylene and PVC in bulk and bags, and the minerals group Maaden whose product includes sulphuric acid at 98 percent concentration as well as phosphoric acid and caustic soda – hazardous chemicals that require stainless steel and rubber coated tanks. Aldrees also undertakes transportation of Maaden’s oil supplies and moves minerals like copper, gold and zinc in containers to Jeddah port for export.

A new product line for Aldrees recently has been the transportation in tipper units of the refinery SATORP’s by-product of pet coke to Jubail Industrial Port, part of an ongoing expansion of the relationship between these two companies. For the National Industrialization Company Tasnee, a demanding new departure is transporting butyl acrylate in special insulated stainless steel tanks, again to Jubail Port.

Cement is an important export commodity for Saudi Arabia, and Aldrees is involved in moving Northern Cement Company’s product in bulk to their customers all over the kingdom as well as keeping the cement plant supplied with petrol, diesel and HFO, which calls for specialised

CEO Engr. Abdulilah Saad Aldrees

Assistant General Manager Eng. Mohamed Yousri Hanno

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www.petromin.com

S U P P LY C H A I N

insulated and heated tanks.

Other tasks include moving ilmenite and coke in bulk from Jazan Port to the National Titanium Dioxide Company’s plant 100 kilometres from the coast and bulk sugar, liquid sugar and molasses to customers of United Sugar Company (Savola) in Jeddah & Riyadh. For the Grain Silo & Flour Mill Organization imported wheat is moved from Dammam Port to the silos in Dammam, Madinah & Tabuk. And let’s not forget the product that built modern Saudi Arabia - for Petromin and Shell Aldrees is trucking base oil from Jeddah, Yanbu & Dubai to blending plants in Jeddah & Riyadh, and finished product in bulk and drums to these customers’ clients.

As we mentioned earlier, a really important customer is Aldrees Petroleum Services

SUPPLIER PROFILE

Finance Manager, Mr. Roberto Rasco

PETROMIN

Aldrees group & Petromin has a long-standing partnership in different fronts. In logistics division, the efficient fleet of vehicles operated by Aldrees are powered up by High Performance Petromin Engine oils. Petromin lubricants provide ultimate protection, reliability and top tear performance on long routes and in most stringent of environmental conditions. www.petromin.com

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A L D R E E S P E T R O L E U M & T R A N S P O RT S E R V I C E S C O .

Dispatch yard

“At the click of a mouse we can tell the wear condition of that tyre, the mileage it has covered and which axles it has been fitted to.”

– Mohamed Yousri Hanno, Assistant General Manager

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May 2015

Division, for which the Transport Division delivers petrol and diesel to every one of the 478 filling stations in 200 dedicated tankers in Aldrees livery. “We make almost 12,000 trips monthly for the fuel stations! They are one of our biggest customers, and of course we are one of theirs because we buy our diesel from them.

We win both ways. We buy the fuel from them and they buy the transport service from us.

The entire fleet consists mainly of Mercedes units, though 24 percent are supplied by Volvo and six percent by MAN. These operate out of six strategically situated depots Riyadh (the head

S U P P LY C H A I N

office with a 100,000 square metre warehouse); Jeddah, Dammam, Yanbu, Jazan, Haditha on the Jordan border; and Jubail. “Each of the facilities is run by a branch manager with full autonomy, and has its own maintenance facility for the trucks. Naturally they all have their own dispatch facility, plus accommodation for the operations, administration and maintenance staff and drivers.

And they are all stocked with the spares needed to keep the trucks on the road.�

While the trucks are regularly updated with the latest fuel efficient models, diesel in Saudi Arabia is cheaper than anywhere in the world

Volvo tractor unit

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S U P P LY C H A I N

except Venezuela. Unlike freight companies in Europe for example Aldrees does not see fuel as a major cost. Tyres are another matter. A little over two years ago, says Mohamed Hanno, the company contracted with Michelin to run its Tyre Management System. “We now have control of every tyre on every truck at any time. At the click of a mouse we can tell the wear condition of that tyre, the mileage it has covered and which axles it has been fitted to.” This is an effective way of ensuring safety while keeping tyre costs down – since the implementation of the system in 2012, he says, average running mileage has increased by around ten percent, and overall tyre costs reduced by a similar factor.

To keep its network working seamlessly, and to manage the complex truck movements, Aldrees

“Each of the facilities is run by a branch manager with full autonomy, and has its own maintenance facility for the trucks.”

– Mohamed Yousri Hanno

Volvo Tractor unit and HFO trailer

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ALDREES PETROLEUM & TRANSPORT SERVICES CO.

Truck maintenance facility

developed its own enterprise system together with a sophisticated Transport Management System (TMS), says Hanno. “Right across company all our operations are linked together and all the data is transmitted on line – the orders from the customer either coming to head office or to the branches are constantly tracked and because we have GPS satellite tracking throughout our fleet, from the Riyadh control room we can monitor the trucks wherever they are operating, even outside the kingdom.”

Thus, with key costs under control and truck maintenance controlled by Aldrees’ own software a couple of key best practice boxes have been

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S U P P LY C H A I N

ticked. A third, vital to satisfying the OEMs and maintaining warranties, is the question of which oil to use in Saudi Arabia’s harsh conditions. After a long period of trialling approval was obtained from all three for engine oils developed by Petromin Corporation. This is consistent with Aldrees’ benchmarking policy, Hanno emphasises, which also dictates that all spare parts are sourced from the OEMs’ approved agents, in a market flooded by cheap replicated parts.

Just a year ago, there was a major change in the company’s centre of gravity when Aldrees opened its state of the art new depot in the fast expanding industrial city of Jubail. Because of its key location near to major clients, this is now

Aldrees can track its fleet anywhere in the world

Insulated mild steel tanker with heating burner for transporting Heavy Fuel Oil (HFO)

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A L D R E E S P E T R O L E U M & T R A N S P O RT S E R V I C E S C O .

Alumium Tipping Bulker for transporting bulk polymers

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the most important depot for the division, but there are more reasons for that investment. “We have two terminals there, each 100,000 square metres in area,” he says. “One is for the Transport Division operations and the other for the joint venture we have set up with our Swiss partner Bertschi group. The company is called Aldrees Bertschi Logistics Services Company.”

Bertschi AG is a specialist in logistics and the transport of chemicals by ISO tanks on road, sea and trains in Europe, China and Singapore.

It should perhaps be explained that an ISO tank is a container built to the ISO (International Organisation for Standardisation) standard and designed to carry liquids in bulk. The frame which the tank sits in measures about 6 metres long,

S U P P LY C H A I N

2.4 metres wide and between 2.4-2.5 metres high. The tanks vary in size and type and can carry between 21,000 and 40,000 litres of liquid.

The new company will be engaged in providing chemical logistics, transport management, warehousing management, cleaning of chemical tanks and related services: it will be managed by a joined team from Aldrees and Bertschi.

Another partnership will see intensive development this year of a completely new line of business for Aldrees – outsourced warehouse management. One major contract already secured

by Aldrees together with South African logistics specialist Barloworld is to manage the warehouse operations of existing customer SATORP. “We hired the people and we’ve done thorough inhouse training in conjunction with Barloworld. We have a trained multinational workforce.”

This is just the beginning says Mohamed Hanno. “We have also started the quotations and tendering process for several offsite logistics challenges, such as hosting bagging lines and drumming lines in our facilities because many of the new companies moving into Jubail, like Sadara Chemical Company for example, which is constructing the world’s largest chemical complex ever built in a single phase in Jubail Industrial City, and Sipchem simply don’t have the warehousing space and are keen to outsource non-core logistics.” It is a great opportunity for Aldrees as Jubail and other industrial complexes in the kingdom continue to expand, he emphasises.

Company Information INDUSTRY

SUPPLY CHAIN HEADQUARTERS

Riyadh, Kingdom of Saudi Arabia FOUNDED

1962 EMPLOYEES

5284 REVENUE

2,144,322,070 Saudi Riyal PRODUCTS/ SERVICES

Retail Petrol sales & Transport Services

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Andy Transport Andy Transport On the Move President and COO Ilie and Andrea Crisan discuss a decade of growth and goals Written by: Sasha Orman Produced by: Michael Magno

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C O M PA N Y N A M E

I

n 2001, Ilie Crisan was the owneroperator of a single transport truck, purchased for around $10,000.

Nearly 15 years later, Crisan is the president of Andy Transport, a swiftly growing trucking company built by Crisan and based out of Salaberry-de-Valleyfield, QuĂŠbec.

Andy Transport operates with a goal of providing clients with efficient 66

May 2015

transportation solutions throughout Canada and the United States.

With a current fleet of more than 175 trucks, and recent recognition as one of the Top 100 Carriers by Today’s Trucking magazine, Andy Transport is building a name for itself as a force in the supply chain and logistics industry.

SECTOR

A Responsibility to Sustainability Andy Transport puts environmental concerns and social corporate responsibility at the top of its priorities as a business. As such, Andy Transport has committed to several green policies to increase conservation throughout every aspect of the business, from onboard scanning fleet-wide to paperless offices. But above all, the business works to build a more environmentally responsible fleet.

“We value our human resources. We treat everybody fairly, and our drivers are very well respected” – Ilie Crisan President, Andy Transport

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ANDY TRANSPORT This means incorporating hybrid aerodynamic technologies like trailer side skirts, which reduce drag and thereby cut fuel consumption three to seven percent, and mandating regular maintenance to catch any fuel-guzzling technical issues early before they become major problems. It also means cutting down on idling and tracking driver behavior to encourage smarter and more eco-conscious habits among Andy Transport staff. As the Crisans explain, these carbon

130 Delta Park Blvd Brampton, ON Ph : 416-848-4111 888-203-8484 Fx : 866-346-8863 support@bvdpetroleum.com www.bvdpetroleum.com

footprint reduction policies serve a twofold purpose: not only do they reduce fuel costs and overhead for Andy Transport, they also speak to the company’s overarching commitment to environmental sustainability.

“We are investing in the development of an eco-driving culture, and recently purchased a driving simulator that is used in our annual training program. The simulator will allow us to teach our drivers the best practices of eco-

Our collaboration with BVD Petroleum targets the optimization of fleet wide fuel services and reduction of fuel expenses. We were thrilled when the BVD team’s customized services program met our expectations.

What we appreciated the most about working with the BVD team was their ability to listen to our needs and to propose relevant solutions. BVD has become a trustful and reliable business partner for our company.

Andreea Crisan, COO, Andy Transport

S U P P LY C H A I N

driving,” says Ilie, explaining that Andy Transport strives to ensure that its fleet is among the greenest on the highway. “Eco-driving contributes to climate protection and pollution reduction; this new tool was easily adopted by our company as it aligns with our corporate mission.”

Another way that Andy Transport is growing is through its connections, engaging in certifications like the United States Environmental Protection Agency (EPA) SmartWay Transport Partnership and the C-TPAT through Customs and Border Protection.

Such certifications bolster Andy A Responsibility Toward Growth Transport’s reputation among Every business is ultimately tuned clients and prove the company’s toward steady growth, and Andy commitment to issues like Transport is also on this path. So far, environmental sustainability and the the company’s track record speaks latest standards in best practices. for itself—what started as a oneWith independent audits, clients can truck operation in 2001 has become rest assured that the service they are a rapidly expanding enterprise with signing up for is the best. plans to add as many as 65 new trucks to the fleet within this year A Responsibility to the Team alone. Beyond fleet expansion, Andy What sets Andy Transport apart Transport also has plans to diversify from its competition? Several points and spread growth around to its come to mind, from the flexibility various divisions. to its consistent and reliable high “We’ve had our logistics division quality service. But perhaps above since 2007, and it is a small division all, what puts Andy Transport head compared to our trucking division— and shoulders above the rest is the but it’s definitely something we’re value that it places in each and every looking at growing,” says Andy member of its team.

Transport COO Andreea Crisan, “We value our human resources,” who notes that Andy Transport is says Ilie. “We treat everybody also looking to diversify its flat bed fairly, and our drivers are very well and intermodal divisions, as well. respected.” According to Andreea, w w w. a n d y t r a n s p o r t . c o m

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ANDY TRANSPORT

this is because the company is led by a president who can relate to and empathize with his staff, as he still remembers what it was like to be a driver himself.

“He was not a truck driver three generations ago—he was a truck 70

May 2015

driver maybe 8 years ago,” she explains. “He understands drivers.

He understands what drivers value, how they feel when they’re alone on the road and how dispatch should be talking to them.”

It’s an empathy that translates to a

S U P P LY C H A I N

Company Information INDUSTRY

Supply Chain HEADQUARTERS

4225 Boulevard Hébert Salaberry-de-Valleyfield Québec, Canada, J6S 6J2 FOUNDED

2001 EMPLOYEES

Not Disclosed REVENUE

Not Disclosed PRODUCTS/ SERVICES

feeling of respect that permeates throughout the company from staff to clients. As Ilie explains, it’s based on the simplest yet most resonant tenet that makes Andy Transport a cut above the rest: “treat everyone with the respect they deserve.”

Private trucking company

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PAPCO

Solutions for Success Leading the way in petroleum marketing and distribution, PAPCO offers the products and expertise needed to navigate today’s ever-changing energy markets.

Written by: Stephanie C. Ocano

Produced by: Jason Wright

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C O M PA N Y N A M E

Strong strategic partnerships with companies such The Vane Brothers Company extends PAPCO capabilities into waterborne and other non-pipeline served markets

F

ounded in 1976 as a family oil business, PAPCO has evolved with the times, continuously setting the standard of excellence in the energy supply market.

Providing fuel supply, storage, dispensing and inventory management solutions for businesses and government agencies, PAPCO’s largest differentiating factor from its competition is providing innovative solutions through personalized customer care.

“One of the things that we offer 74

May 2015

our customers is a very customized approach to becoming their fuel supplier,” said Frank Daniels, Director of Marketing at PAPCO, during a recent interview.

PAPCO makes the conscious effort to understand its customers’ needs prior to shipping any products. Beyond a tactical fuel supply perspective, PAPCO works alongside its customers in an effort to help them meet their financial goals in running their business.

“We strive to be an aligned strategic partner with each and

SECTOR

every one of our customers where we can provide them with efficiency, cost-benefits and help them grow as we grow right alongside them,” said Eric Rosenfeldt, VP Sales, Supply and Trading.

“We help such an under-served market in that regard because fuel procurement is mainly driven by price. It is a commodity. Taking that extra step and time to listen to the customer, to understand what their needs are and then come back with real solutions that help their fuel purchasing or their strategy around

how they obtain the fuel that operates their business is something that we try to focus on,” Rosenfeldt added.

A Multi-Step Process From the very start, PAPCO creates a personal bond between provider and customer. During the initial appointment, PAPCO creates an open relationship to understand their customers’ business challenges.

“We listen to them and try to understand what keeps them awake at night,” said Rosenfeldt. “Is it the fact that they don’t have enough fuel w w w. p a p c o . c o m

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PAPCO provides over-the-water fueling training as part of a program with the United States Coast Guard Training Center in Yorktown, VA

PA P C O supply for their business because the logistical infrastructure around their facilities is very constrained?

Or is it the price because they’re in a highly hypercompetitive market?”

According to Rosenfeldt, upon identifying the risks and concerns customers have, a plan is created to alleviate said risks and/or constraints and then benchmark said plan.

“We then sit down and say ‘How has this worked over time?’” said Rosenfeldt. “We’re not just consultants where we throw something out there and say, ‘You should do this.’ We always circle back to the customer and ask what worked, what didn’t work and how have things changed.”

Providing Value for the Customer Thanks to this customized solutions approach, every customer can be sure that they are obtaining product at a market-related price. But that’s not where the true value factors in.

The value comes from the why.

“It’s not just, ‘Here’s your product, where’s your price?’ and that’s the

S U P P LY C H A I N

end of that,” explained Rosenfeldt.

“It’s more about bringing information to the customers and that has a lot to do with the content that we provide our customer base to help them understand where they stand amongst the market and the logistical constraints that have popped up.”

By sharing the “why” and “how” with their customers, PAPCO is able to receive valuable feedback that allows them to create new strategies in their operations.

In short, PAPCO both watches and analyzes the market, allowing them to manage their own costs and supplies on behalf of their customers.

“Answering the ‘What should we do now?’ is a pivotal moment in our relationship with our customers,” said Daniels. “It really defines us in making a strong recommendation based on the customer’s needs.”

“We don’t tell the customers we know where the prices are going to be two weeks or two months from now, because no one knows that,” added Rosenfeldt. “What we do is share our knowledge base with them, and offer them substantive w w w. p a p c o . c o m

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PA P C O fuel market information and analysis that helps them make more of an informed decision. That’s what sets us apart.”

A Supply Chain Leader PAPCO has access to over 1 million barrels of owned or leased storage.

A shipper on the Colonial Pipeline (which links the company’s supply chain all the way to the Gulf Coast) with inventory locations throughout the eastern United States, PAPCO maintains fuel supply agreements with major oil refining companies such as Exxon-Mobil, Citgo, Shell and BP. PAPCO has prided itself on never missing a delivery on account of a lack of supply, and according to Rosenfeldt, this is made possible because of the contingency plans set in place.

“It comes through contingency plans and asset diversification,” he said. “What I mean by that is, on a very macro level, the ways in which we transport product are via pipeline, rail, barge or truck, and you need to be able to understand and execute contingencies around all of that.”

By having contingency plans in 78

May 2015

place, PAPCO can ensure that if something were to happen on the pipeline, the product can still be delivered via barge—if it’s not a waterborne market, then by rail.

Asset diversification is having the access to product from a variety of producers so if one has issues, another producer is in place.

“When you look at our business of oil distribution and all the other value additions that we bring to the table, one of the things our customers look to us for is experience to get them through tough times,” said Daniels. “Whether its hurricanes or other stressed weather situations where the entire oil infrastructure is severely constrained, that’s when we’re needed most.”

Triumph through Tragedy Hurricane Sandy was the deadliest and most destructive hurricane of the 2012 Atlantic hurricane season, as well as the second-costliest hurricane in United States history.

When PAPCO was called upon to continue delivering fuel during this calamity, rather than declaring force majeure, the company stepped forward and continued operations

S U P P LY C H A I N

without missing a beat.

“We took a lot of pride in stepping up to the table and performing during that timeframe and not looking at the situation as, ‘How can we have an out because of certain challenges that we may or not be facing because of the market?’” said Daniels. “We looked at it as, ‘This

is our opportunity to prove to our customers the value that we bring to the table.’ And that was the time we needed to perform.”

Ben McClenahan, Director of Commercial Sales, added, “That’s part of our value proposition. The supply chain is fragile, but you know, 11 months out of the year there are

PAPCO owns select fleet and storage assets in eastern VA, partnering with third parties to provide the same level of service all along the East Coast

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PA P C O

PAPCO works to become a fuel partner, understanding customers’ needs prior to shipping any product

no problems, but we always tell our customers ahead of time, ‘This will happen at some point.’ Hurricane Sandy is a good example because we have customers today that are very loyal to us, still remembering the tough times they had during those two, three, four months where their supply was very tight and we provided them supply when no one else would.”

Creating Relationships with 80

May 2015

Suppliers Meeting with their suppliers quarterly, PAPCO continuously reviews its relationships to determine what is being looked at, what new markets look interesting and what assets might be available.

“We have quarterly business reviews to make sure our goals are aligned,” reiterated McClenahan.

“We don’t want to bring on a new supplier if we can’t help them grow their business along with our

S U P P LY C H A I N

business, so it’s just a constant communication with them.”

PAPCO itself has been recognized as a quality supplier from the U.S. Defense Logistics Agency (DLA).

A primary resourcing arm for the U.S. military and other agencies, the DLA recently announced its top performing supply contractors for fiscal years 2013 and 2014 and PAPCO was designated as DLA Superior Supplier.

Looking Towards the Future “We have taken our model and executed it,” said McClenahan, “from the consulting base to the selling to the logistical infrastructure—everything that it takes to do our business. Now, we’re going to take that into new markets.”

PAPCO’s growth can be attributed to acquisition and organic growth. Acquisition aside, the company feels that there are a number of markets they have not entered that hold substantial potential. But how do you continue to expand in such a competitive market? Focus on your people and your brand.

“It is our people at the end of the day that are keeping all our promises and delivering our value to the customers,” said Rosenfeldt. “We’re also seeing the benefits of a really strong brand reputation. It’s rewarding to know that when we approach customers that they’ve heard of us and that our reputation is strong in the marketplace.”

Company Information INDUSTRY

Exploration HEADQUARTERS

4920 Southern Blvd.

Virginia Beach, Virginia, United States, 23462 FOUNDED

1976 EMPLOYEES

150 PRODUCTS/ SERVICES

Oil & Energy

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Company logo goes here

African Airlines Association By Secretary General Dr Elijah Chingosho

83

AFRAA

T

Dr Elijah Chingosho

To serve African airlines, promoting and protecting their common interests AFRAA mission statement

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he African Airlines Association (AFRAA) was established in April 1968 in Accra, Ghana as a trade organisation open to membership from airlines in African states.

AFRAA is headquartered in Nairobi, Kenya; it has a membership of 35 airlines which constitutes more than 80 percent of all African international air transport services.

Its mission is: “To serve African airlines, promoting and protecting their common interests.�

Since its inception, AFRAA has been instrumental in developing air transport policies and articulating the views and positions of its members on a number of issues. Through its activities, the Association has contributed significantly to the growth and development of African aviation.

AFRAA maintains an international perspective and provides a unique African voice on behalf of its members. The Association maintains relationships with governments and other industry stakeholders on the continent and across the world, advocating on key industry issues. These relationships include the African Union Commission, as well as the African Development Bank (AfDB). It also has similar links with with industry organisations which include the International Air Transport Association (IATA), Arab Air Carriers Organisation (AACO), the International Civil Aviation Organisation (ICAO), and the African Civil Aviation Commission (AFCAC), as well as the Airports Council International (ACI).

AFRAA has links to various governmental and

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non-governmental bodies and Regional Economic Communities such as the Economic Community of West African States (ECOWAS), the Common Market for Eastern and Southern Africa (COMESA), the Southern African Development Community (SADC), and the West African Economic and Monetary Union (UEMOA). Associations also extend across to an assortment of manufacturers and service providers. This level of collaboration accords AFRAA much goodwill as well as a broad framework of resources and assistance which benefits members, protecting their common

AFRAA Building

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AFRAA

AFRAA deals with key industry priorities, chiefly helping airlines attain industry best practices in safety, security and operations

‘AFRAA is leading campaigns on reducing industry costs which arise from high levels of taxation and charges on passengers, fuel and services, which are well above global levels ’ 86

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interests and providing support for a better economic environment for their operations.

AFRAA deals with key industry priorities, chiefly helping airlines attain industry best practices in safety, security and operations.

This includes ensuring that all African airlines attain IOSA certification as an important component of AFRAA’s safety programme.

AFRAA is actively working with IATA, AFCAC and ICAO to ensure that safety levels on the continent reach global standards.

AFRAA is a leading campaigner for reducing

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the industry costs which arise from high levels of taxation and charges on passengers, fuel and services, which are well above global levels. Fuel prices at some stations in Africa are over twice the world average which has an adverse impact on the competitiveness of African airlines. Higher costs translate into higher prices, which in turn stifles demand.

At several African airports passenger charges range from $ 40-80 with some stations charging as high as $157, well above the world average.

In contrast, Middle Eastern passenger charges

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AFRAA

Opening of the NEPAD Head of State and Government Summit, 29 January 2015 Addis Ababa, Ethiopia.

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are around $15-25. In Europe, apart from Heathrow Airport where passenger charges are just over $60, charges average below $33.

The Association is also advocating for the industry to take its environmental responsibilities seriously and reduce the impact of aviation on the environment through modernising fleets and supporting initiatives towards carbon neutral growth to ensure a carbon free future.

AFRAA is actively involved in driving industry change by advocating for fully open African skies for African operators. The recent African Heads of State Summit which took

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place in Addis Ababa from the 30th-31st of January made a solemn commitment to delivering this initiative by January 2017.

AFRAA is communicating the successes of its members through a monthly newsletter (AFRAA Bulletin), a quarterly Africa Wings Magazine, a bimonthly CEO’s brief, and a revamped website, in addition to using its social media presence.

Participation in member conferences, committees, and task forces offers unprecedented access to a variety of airline and industry partners. The AFRAA Annual General Assembly brings together representatives from leading airlines, partners and stakeholders from around the world.

To improve capacity and ensure that African carriers effectively compete in the fiercely competitive industry, AFRAA provides training in major fields such as safety, security, operations, commercial, and managerial areas.

These programmes help to strengthen the capabilities of aviation industry professionals.

Eleven states recently declared their commitment to fully open their skies in conformity with the Yamoussoukro Decision (YD). This is very exciting because with fully open skies, African airlines can more freely consolidate through joint ventures and mergers, cross-invest in each other, and adopt other marketing arrangements that will spur growth and competitiveness.

This will provide consumers and economies with the benefits of greater connectivity.

No.28: February - April 2015

A F R A A ’ S PA N A F R I C A N J O U R N A L O N A I R T R A N S P O R T

Interview with

Tunisair Chairperson & CEO

Africa Deserves Better Air Connectivity

46th AFRAA

AGA & Summit Concludes

Taking Control

of your Airline Revenues

Africa Wings Magazine

AFRAA Website

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Air Botswana:

AFRICAN DEPARTURES Written by: John O’Hanlon Produced by: Daniel Pritchard

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A I R B O T S WA N A

Africa is home to twelve percent of the world’s people, but it accounts for less than one percent of the global air service market: there is a huge opportunity crying out to be taken up, and Air Botswana is taking the lead

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Almost exactly a year ago Mr. Tozivazvipi Benster (Ben) Dahwa was appointed as CEO of Air Botswana (AB). He thought carefully before taking the job, but having done so he certainly threw himself into the task of formulating and delivering a five year plan to turn the country’s national carrier into a catalyst for economic development.

Trained as an engineer, Ben Dahwa has over 30 years’ experience in aerospace, and sees his job as delivering culture change in an organisation hitherto cast in a traditional mould. To assess the current state, and to formulate change, AB brought in the USAbased consultancy ICF International. “The plan sets out a strategy based on structured rather than aggressive growth,” he said. “We need to consolidate and refine what we do.”

The plan launched at the beginning of this year. Early targets such as on-time performance, cost containment and network rationalisation, however, were addressed right from the time of Dahwa’s appointment. For the travelling public the key metric is on-time performance: at the time of writing AB’s on time record (defined by IATA as within 15 minutes of scheduled time) stands at 86 percent. That is against a global industry average in the low to mid 70s, and represents a 16 percent improvement over the last ten months. Cause for satisfaction? Yes, agrees Ben Dahwa: “But we are a small airline.

With new equipment and once the changes we are making take effect I see no reason why we

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“We believe this plan will improve our profitability to a point where we will no longer be reliant on subsidies” – T ozivazvipi Benster Dahwa, CEO of Air Botswana

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A I R B O T S WA N A

“We believe this plan will improve our profitability to a point where we will no longer be reliant on subsidies” – Ben Dahwa

should not achieve on-time performance more than 90 percent of the time, consistently.”

The plan addresses both restructuring the company operations and re-fleeting. “Our fleet is getting older so the cost of keeping the aircraft flying is getting steeper by the day. We need to be renewing the fleet so that we can enhance our product and provide services we can’t now.” There i s a growing demand, he says, for business class services for example, and the in-flight comforts and refinements that the latest jets incorporate.

Re-fleeting will happen over the next four The lounge at Gaborone

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years so that by 2020 all the planes will be new.

“We expect to see our maintenance and fuel costs going down significantly. We’ll also have a more attractive product that will sell better and boost revenues,” he said. “We believe this plan will improve our profitability to a point where we will no longer be reliant on subsidies.”

While he’d like to be able to purchase new aircraft that may not always be the best way to go.

“In our current model we operate six aircraft,” he says. “We needn’t say that we will replace them all in the same financial year though. If market conditions are favourable an outright purchase might be the best mode of acquisition. If we are less sure about traffic growth we can go for an operating lease.” Botswana has the highest credit rating of any African country, so would have no trouble leasing on favourable terms.

Addressing operational issues has to be done in partnership, he emphasises. The Civil Aviation Authority of Botswana (CAAB) manages the country’s airports, including Sir Seretse Khama International Airport at the capital Gaborone, and Francistown International Airport in the north east. A very close working relationship exists between these parastatals (government owned entities operating as commercial concerns), both reporting to the Minister of Transport.

The government has every reason to support AB. In 2014 tourism contributed 6.4 billion Pula ($650 million) to the economy, said Dahwa.

“Within that figure, about two billion is traceable

Welcome to Air Botswana

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A I R B O T S WA N A to high value tourists – the ones that would use air transport to come into Botswana, and who also use internal flights. We can thus claim to be facilitating a P2 billion impact on GDP. Even if the government subsidises our operations to the tune of say P100 million, that would be hardly five percent of our net contribution to the national economy! I think this is how a national airline should be measured.”

Dahwa favours partnership with private operators in developing short routes that would not be operable using AB’s larger aircraft. A good example is the link between the popular tourist destinations Maun and Kasane. The hour long

Inside the lounge

Packaged Deals

One Stop Convenience Service Provider

Securing Your World

Cleaning Services Contract cleaning for offices, schools, shopping malls, universities, airports High rise window cleaning, carpets, domestic cleaning Facilities Management Services Financial: Full accounting services Utilities & Services (reading utility meters) Make payments within agreed parameters Maintenance & inspection of properties * Electrical * Plumbing * Carpentry Fleet Management Real-time vehicle tracking Efficiency & cost control Fuel usage reporting & management Time management Integration Monitoring driver behaviour Management reporting Secure Monitoring & Response Intercom systems Security alarms Portable panic buttons Electric fences Emergency medical alarms Fire alarms Visual alarm verification systems Illegal access signals Access control systems Facility & Fleet Managemnet CCTV Systems Cash, Assets Management & Secure Logistics

Cash Management Vaulting Asset & cash in transit services Deposita automated machines Integrated asset management ATM Services:- Replenishment, 1st line maintenance Key Security:- collection and delivery of strong room keys Security Products:- tamper evident bags, seals, coin boxes

Manned Security Customised security solutions Technology Integration Continual risk management Sector specialisation: mining, oil and gas, aviation, hospitality, telecoms, retail and financial Institutions Event security Secure mobility & close protection G4S (Botswana) Ltd Careers & Recruitment Sales Tel: (+267) 3698000 P O Box 1488, Gaborone Tel: (+267) 3698000 Tel: (+267) 3698000 Plot 20584, Western Bypass Fax: (+267) 3914124 Gaborone, Botswana, Africa Email: Head.office@bw.g4s.com Email: Sales@bw.g4s.com Email: recruitment@bw.g4s.com

Exceptional Service.

Personal Attention.

In order to provide comprehensive solutions to multi-faceted financial services industry requirements, and to deliver a strong client-focused approach across a range of insurance products, servicing corporates medium –size businesses and individuals in South Africa and the rest of Africa, the Pogir Group consists of four separate companies: Short Term Insurance, Healthcare Solutions, Employee Benefits and Life & Advisory.

Visit us online to find out more: www.pogirgroup.co.za St Andrews office park, Block A, Ground Floor 39 Wordsworth Avenue, St Andrews Bedfordview Tel: (011) 879 7200 | Fax: (011) 454 - 0581

S U P P LY C H A I N

flight is operated twice weekly by local operator Kalahari Air Services (KAS). AB underwrites the operating costs, and KAS maintains the route using its own aircraft. That is a model he would like to see replicated widely, as a way of bringing such places as the mining town of Orapa and the desert community of Ghanzi into the network. Such small operators need to be as strict in compliance and safety as AB itself, which is IOSA (IATA’s International Operational Safety Audit) checked every two years.

A vital component in AB’s modernisation plan is the introduction of new ICT systems. “The present system is too manual. We lack world

“We believe this plan will improve our profitability to a point where we will no longer be reliant on subsidies” – Ben Dahwa

A BAe 146-100 regional airliner

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A I R B O T S WA N A

“We are part of the national team that is working on attracting international flights into the country” – Ben Dahwa

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class automation tools.” To address this an ERP solution will be implemented, linking every activity from operations, commercials, finance, maintenance, tracking of paperwork such as airworthiness certification and all customer facing processes. This is a critical phase, Ben Dahwa emphasised. Over the coming three to four years, in the same timeframe as fleet renewal, expenditure of P30 million ($3.5 million) has been budgeted for ICT alone, as the new system is implemented, module by module. “It is a big step so we need a transformational culture change,” he said. “My management team is driving that forward. We want to see efficiency and productivity going up and wastage, whether performance or equipment related, going down!”

Downsizing will be minimal. Certainly fewer people will be needed to maintain existing levels

S U P P LY C H A I N

of work, but this should not mean involuntary redundancy. AB is in expansion mode and this will absorb most of the core workforce. Retraining and multiskilling will be needed: older workers will be retained to pass on their knowledge, then perhaps offered early retirement.

It’s national policy to bring long-haul flights into Gaborone, though AB will itself stick to regional flights up to 2020, extending its network though code sharing arrangements with global carriers.

“We are part of the national team that is working on attracting international flights into the country, in partnership with private business.” He said.

“Botswana Investment and Trade Centre (BITC) Botswana Development Corporation (BDC); The Botswana Confederation of Commerce, Industry and Manpower (BOCCIM); Public Enterprises Evaluation and Privatisation Agency (PEEPA) Botswana Tourist Authority (BTA) - we all need long haul into Gaborone!”

Additionally to becoming a passenger hub, providing feeder flights to the region, AB want to become a cargo hub for southern Africa.

After all Gaborone is nearer to the industries of Gauteng than Cape Town or Durban. As the assigned ground handler, occupying the cargo terminal at Sir Seretse Khama Airport the company has invested P43 million ($4.36 million) in the latest cargo handling equipment. Once the final items have been delivered, AB will be able to handle the largest aircraft in the skies.

Company Information INDUSTRY

Aviation HEADQUARTERS

Gaborone FOUNDED

1972 EMPLOYEES

420 REVENUE

N/A PRODUCTS/ SERVICES

Air Botswana operates and maintains a fleet of BAE 146 as well as ATR42-500 and ATR72-500 advanced turbo propeller aircrafts which operate daily domestic and regional scheduled flights

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The infrastructure of success: Transnet investment supports growing South African economy Written by: Nye Longman Produced by: Dennis Morales

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TRANSNET

Across the board, Transnet is investing in infrastructure projects targeted at increasing the country’s economic competitiveness while ensuring opportunity and security for the communities of South Africa 102

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T

ransnet in some form or other has provided infrastructure support to South Africa and the neighbouring region for well over a century. The company has always followed market trends, laying tracks northwards in the late nineteenth century after gold deposits were discovered in the Transvaal Republic. Since then the company has remained under state ownership and supervision, gaining control of oil pipelines and port authorities while retaining its control of freight rail. Supply Chain Director, Garry Pita

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explained the company played “a vital role not only in everyday life, but in the national economy and economics of several other African states that use the networks and harbours within South Africa to transfer their imports and exports.�

Brian Molefe is the GCE of Transnet, which includes Transnet Port Terminals, Transnet

Operations: With such a wide remit, Transnet has its work cut out in securing results for users, meeting government targets and keeping its own employees happy. In order to coordinate this

National Ports Authority, Transnet Freight Rail, Transnet Engineering and Transnet Pipelines

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Experience the The most advanced maritime cranes boost South Africa’s cargo handling.

Liebherr Afrika (Pty) Ltd. 2 Kubu Ave. Riverhorse Valley Durban North 4071, South Africa maritime.cranes@liebherr.com facebook.com/LiebherrMaritime www.liebherr.com

progress. from Liebherr

SUPPLIER PROFILE

LIEBHERR MARITIME CRANES

Liebherr Maritime Cranes is a division of the Liebherr Group and currently employs more than 3,700 employees worldwide.

Liebherr Maritime Cranes specialises in cargo handling solutions for ports as well as for the shipping and offshore industry.

Liebherr Africa (LAF) is a fully owned subsidiary of the Liebherr Group which comprises more than 130 companies worldwide. Present since 1958 in South Africa, LiebherrAfrica is serving the needs of the local mining, construction and civil engineering industries for more than 57 years.

Contact: Henner Rodenwoldt Division Manager - Maritime Cranes Liebherr-Africa (Pty) Ltd P.O. Box 40033 2 Kubu Ave Riverhorse Valley Durban North 4071 Tel: +27 (0) 31 010 0310 Fax: +27 86 754 6677 Email: Henner.Rodenwoldt@liebherr.com Website: http://www.liebherr.com/en/deu/products/maritime-cranes/ maritime-cranes.html

TRANSNET

S U P P LY C H A I N

vast and sometimes convoluted network of operations, Transnet adheres to directives issued by the Department of State Enterprises, including the New Growth Path (NGP) and the National Development Plan (NDP) These initiatives seek to restructure the South African economy in order to reduce inequality and poverty through the promotion of quality work opportunities.

The backbone of this economic driver will be supported a strong infrastructure system of rail, ports, and pipelines, so the support Transnet provides is absolutely vital.

Through its commitment to these government initiatives, Transnet is looking to create new jobs across the South African economy and reduce the total cost of doing business

Mr Garry Pita, Supply Chain Director

Transnet offers a broad range of job opportunities for its workforce

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Technology leader Maximized customer benefit Turnout system solutions for Africa and

voestalpine VAE SA (Pty) Ltd 23 Anvil Road, Isando 1600, South Africa Tel: +27 11 928 3700, Fax +27 11 928 3910 sales.VAESA@voestalpine.com www.voestalpine.com/vaesa

the rest of the world

SUPPLIER PROFILE

voestalpine VAE SA (Pty) Ltd voestalpine VAE SA (Pty) Ltd is the approved and preferred supplier in South Africa, and Africa, for all permanent way rail, ranging from high speed mainlines, urban traffic, heavy long-distance iron-ore and coal haulage and underground trackwork. Our commitment extends beyond products and services as it provides complete solutions from site-specific design, manufacturing and pre-assembly through to installation. Our guaranteed quality is benchmarked against world-class best practice. voestalpine VAE SA’s is a company within the voestalpine AG Group, a leading European processing corporate with its own steelmaking facilities and its headquarters in Austria. The Group has four divisions, Steel, Automotive, Railway Systems and Profilform, which all occupy top positions in their respective markets. The voestalpine Group resolutely seeks and ardently follows new paths in innovation, whilst focusing on lasting benefit for its customers, shareholders and employees.

In Southern Africa the major customers are the national railway operators, private siding owners, the mining industry and companies who have installation and maintenance contracts with various infrastructure owners.

Management: David Marite, CEO Address: 23 Anvil Road, Isando, 1600, PO Box 774, Isando, 1600 Tel: +27-11-928 3700 Fax: +27-11-928 3900 Email: sales.VAESA@voestalpine.com Website: www.voestalpine.com/vaesa

TRANSNET

S U P P LY C H A I N

across the country by 0.5 percent, a small but nonetheless significant figure. The company also has much potential to boost the skills profile of the communities it operates in through its dedicated localisation programme.

In recognition of this need for increased capacity, Garry Pita said: “It is our intention to strengthen our partnerships to derive greater value from our freight logistics system. We intend to play a positive role in achieving economic growth in South Africa.”

Investments: Demand for Transnet’s services is increasing continuously and is set to continue for a long time. This is because economic growth on a national scale must be supported by reliable, cost-effective infrastructure if it is to be lasting.

Its responsibility to the well-being of the country is reflected through its implementation of Market Demand Strategy (MDS) which focuses on a seven year capital investment, with a projected total spend of R312 billion Pita is keen to inform us that this “excludes at least R500 billion of operational expenditure, including personnel

“We intend to play a positive role in achieving economic growth in South Africa.”

Manual labourer

Port operations

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SAMSA STANDS FOR LEADERSHIP IN THE MARITIME SAFETY AUTHORITY SPHERE.

As an African leader in the Maritime Safety Authority Sphere, SAMSA leads in policy-making and is at the forefront of promoting South Africa’s Maritime Interests.

The organisation works to develop South Africa as an International Maritime Centre, while ensuring Maritime Safety, Health and Environmental Protection.

As 80% of world trade is transported via our oceans, the leadership and services that SAMSA provides are invaluable to our economy.

Visit www.samsa.org.za to find out more about how SAMSA makes a lasting difference.

SUPPLIER PROFILE

SAMSA The South African Maritime Safety Authority (SAMSA) was established under the SAMSA Act 5 of 1998. It is the authority charged with the promotion of South Africa’s maritime interests. These interests, rights and obligations are covered under international conventions to which South Africa is party, such as the United Nations Convention on the Law of the Seas (UNCLOS), the Safety of Life at Sea (SOLAS) and other maritime related conventions, which SAMSA must protect and promote. These international conventions are administered by the International Maritime Organisation (IMO).

The articulation of the maritime policy imperatives and goals are as follows: • Developing maritime awareness; • Assisting in the creation and fostering of an economic environment for the Maritime Transport Industry which will allow it to compete with other nations; • Contributing to the release of the full potential of the maritime industry in South Africa and to the modernisation of the shipping administration; • Ensuring fair labour practices such as employee rights, job creation and security with acceptable standards of employee health, welfare and safety in the maritime industry.

As a result of articulations in the Transport Policy the founding legislation of SAMSA identified three core mandate of the entity as: • To ensure safety of life and property at sea • To prevent and combat pollution from ships in the marine environment • To promote South Africa’s maritime interests Website: www.samsa.org.za

TRANSNET

S U P P LY C H A I N

costs.� Aside from developing modern, sustainable infrastructure the MDS aims to create almost 600,000 new jobs by supporting the growth of local businesses.

This enthusiasm for investment breaks away from the prerogatives of previous management teams, which Pita described as conservative. Most capital investments are planned to be completed in the next five years, which will be across the company’s freight and freight rail operations. Perhaps the most important of these is to increase rail capacity growth to meet growth in market demand volumes which will see capacity soar from 79.7 megatonnes to 170.2 megatonnes.

Increases in coal, iron ore and manganese exports are planned as global demand for these resources increases, especially from China.

600k MDs aims to create this many new jobs An increase in demand for Transnet’s Rail freight operations as demands for larger bulk volumes increases

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TRANSNET

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A paryi l 22001155 M

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“Transnet in some form or other has provided infrastructure support to South Africa and the neighbouring region, for well over a century” – Garry Pita

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“When Africa called,

Neotel allowed us to answer.”

Axon Holdings Divisional CEO, Andre van Zyl.

As a fast-growing company expanding its presence into Africa, Axon Holdings needed a telecommunications partner that could respond quickly, allowing it to upgrade its services in real-time.

Through NeoOne, our converged access solution, we provided the perfect answer. Using NeoVoice and NeoInternet, Axon Holdings are able to run nearly 50 000 Automated Voice Messages daily.

“Neotel delivers a converged solution that works seamlessly for us,” says Andre.

If you’re facing telecommunication challenges, switch to Ne Call 0860NEOTEL, switch@neotel.co.za or visit www.neotel.co.za

NeoOne’s flexibility and scalability will enable Axon to upgrade its facilities instantly and increase its telecommunication capabilities overnight – with no downtime.

“We’ve also been very pleased with Neotel’s round-the-clock tech support. Their service excellence has given us the confidence to plan our expansion.”

eotel.

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They currently have 480 voice channels and plan further expansion into South Africa and Africa through the Neotel network.

SUPPLIER PROFILE

NEOTEL Neotel challenges the status quo and makes ICT simpler. Since August 2006, Neotel has helped thousands of businesses - large and small, reduce their communication costs, increase their productivity and grow their revenues. As South Africa’s first converged telecommunications network operator, Neotel provides innovative and cost savings solutions to its customers.

We welcome businesses wanting to explore options with Neotel. Neotel enables business and consumers to communicate and collaborate within South Africa and connects South Africa to the world – developed and emerging to enable commerce.

Over the 8+ years with over R6 billion investment in infrastructure, Neotel prides itself by being a level 3 business with its ~1000 passionate staff that help the business ‘inspire possibilities’ through innovative technologies and leveraging access to over 16,500 kms of national long distance fibre, over 9,000 kms of metro fibre and access to all 5 submarine cable systems that connect South Africa to the world.

Neotel provides the most superior and reliable communications services in the country to its customers and deploys innovative technology in its Converged Services and Voice, Internet and Internet Services. Thank you Transnet for your support!

Transnet rail freight equates to 80 percent of sub-Saharan Africa’s total freight

Freight Rail: Rail Operations is by far Transnet’s oldest and largest division, and the network has snaked across the Southern half of the African continent for well over a century. With so many decades of growth and innovation behind it, Transnet’s freight rail accounts for almost 80 percent of sub-Saharan Africa’s total freight infrastructure, which helps to explain why the country retains its place as one of the most developed countries on the continent. Past investment and foresight has ensured that the company has the capacity to transport freight from all of the country’s key industries including minerals, automotive, coal and agriculture. Beyond its extensive coverage of South Africa, the company oversees a web of operations which spans 17 other countries in

Transnet supports the country’s key industries including automotive, coal and agriculture.

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TRANSNET Africa, employing 25,000 people.

As part of Transnet’s Socio-Economic Infrastructure Development (SEID) portfolio the company donates old freight trailers to under-resourced communities and transforms them into usable facilities. So far over 30 such structures have been completed, enhancing the lives of over 100,000 citizens.

This project has been particularly successful in delivering security to remote areas, in

Transnet’s Socio-Economic Infrastructure Development (SEID) portfolio has reaching benefits, supporting local communities and their growing infrastructures.

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TRANSNET

terms of both policing and healthcare.

Transnet Foundation Head, Cynthia Mgijima said: “We have invested over R27 million into the programme since 2001 and have built 19 satellite police stations and 14 multi-purpose centres. Added to this, 27,000 jobs have been created. We aim to meet the needs of the present, without compromising the ability of future generations to meet their own needs.�

S U P P LY C H A I N

Capital investment increased by 15.6 percent to R31.8 billion in Q4 of 2014.

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About Us

KHULA Fleet Solutions (pty) LTD was established in 2012 in an Industry dominated by large business. The founders vision was to form a truly black empowered Fleet Management Company in the South African market and was of the opinion that the industry would be receptive for a small business entrant, who would be

able to be nimble and unique in its customis product offerings, focusing on the customer’ unique needs as its key priority. KHULA Flee mission is to be a premier, growing compan that provides innovative, cost effective and focused, fleet management solutions and services which are strategically suited to its clients’ operational requirements.

Our Services Vehicle Disposal

Management Information

Tyres

Fuel Management

Traffic Fine Management

Vehicle Tracking

+

Relief Vehicles (short term rent

Fleet Telematics

Sourcing & Purchasing

Operating Rentals (OR) + Full Maintenance Rentals (FMR)

Maintenance Managemen

Our Value proposition Continuous Improvment Initiatives

Continuous Improvment Initiatives

Maintenance/ Abuse Tracking Enhanced driver awareness/training Right mix of vehicles “fit for purpose” Right sizing the fleet

sed r’s et’s ny

Introduce a culture of continuous improvement Enhance reporting access to quick information

KHULA Fleet’s objective is to maximize the efficiency of our client’s fleet by reducing operational costs and reduce the impact on the environment in the most economically feasible manner, while meeting the travel needs of our clients. This balancing act will have to be well managed thus ensuring cost effective transportation choices for current and future initiatives.

These include

tal)

e nt

• Right-sizing the vehicle fleet • Optimizing fleet management by achieving the right mix of vehicles matched to duty requirements – Fit for Purpose • Improving vehicle use through enhanced driver awareness and training, like green defensive driving courses • Improving vehicle maintenance tracking • Timely and more comprehensive reporting on vehicle operations • Enhanced two-way communication with Client and its Business Units • Enhanced reporting to Client and its Operations • Encouraging the ongoing development of a culture of continuous improvement within Client base

www.khulafleet.co.za salesenquiries@khulafleet.co.za +27 87 722 0003

SUPPLIER PROFILE

KHULA FLEET SOLUTIONS (PTY) LTD

KHULA Fleet in-turn delivered +-2500 vehicles nationally and expensed a capex value of +-R400 million. In 2013, KHULA Fleet was awarded in part for the light commercial and passenger fleet amounting to +-3500 vehicles. KHULA Fleet has fought the odds and remains in a strong business position going forward. We believe that through our innovation, embracement to technology based solutions and customer focused deliverables, KHULA Fleet can and will differentiate its identity in the industry.

Management: POOVANDEREN PILLAY Tel: 011 460 0764 Fax: 086 568 4602 Email: darrenp@khulafleet.co.za 53 Brunton Circle Founders New South Modderfontin www.khulafleet.co.za

TRANSNET

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The coal and minerals bulk terminal at Richards Bay

Ports: Transnet Port Terminals (TPT) operates container terminals at Durban, Richards Bay, Ngqura, Port Elizabeth, and Cape Town. In 2007 redevelopment on Durban Container Terminal Pier 1 facility finished, the port becoming South Africa’s first ever rubber tyred gantry operator.

Ngqura Container Terminal has also recently been launched, servicing traffic from the East, South America and West African markets. Recently,

“We aim to meet the needs of the present, without compromising the ability of future generations to meet their own needs.”

Port officials in action

– Garry Pita w w w. t r a n s n e t . n e t

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RAIL 2 RAIL MANUFACTURES CONCRETE RAILWAY SLEEPERS OF THE HIGHEST INTERNATIONAL STANDARDS UNDER LICENCE FROM RAIL ONE GMBH (GERMANY) AND PROVIDES OUR CLIENTS WITH MORE THAN 6 DIFFERENT OPTIONS IN TERMS OF SLEEPER TYPES. WE OFFER A FULL TURN KEY SERVICE, FROM DESIGN OF THE APPROPRIATE PRODUCT THROUGH TO A DELIVERY SOLUTION THAT IS TAILOR MADE FOR EACH SPECIFIC SITUATION

ASHLEY VAN DER BERG, OUR FOUNDER, ESTABLISHED RAIL 2 RAIL AS A RESPONSE TO TRANSNET FREIGHT RAIL’S CALL FOR ENTERPRISE DEVELOPMENT AND TRANSFORMATION IN THE RAIL SECTOR 14 – 32 STUDY STREET FABRICIA, KIMBERLEY, SOUTH AFRICA Tel: +27 (53) 832 0266 Fax: +27 (53) 832 2097 www.rail2rail.co.za Email:1ashley@rail2rail.co.za 28 April 2015 Concrete Sleeper Innovation

TRANSNET

S U P P LY C H A I N

Ngqura was earmarked to receive an additional R2 billion in funding to deepen several ship berths and procure a raft of technical equipment in order to expand operational capacity. Equipment procured included 18 rubber tyred gantries, 48 bathtub trailers, two megamax ship-to shore cranes and 48 haulers.

The coal and minerals bulk terminal at Richards Bay has received numerous funding packages across its four decades of service, and now has capacity to process 20 million tonnes per annum, with a berth capacity of 13. Billions of rand have been set aside to fund further capacity which will see growth in this area between 2013 and 2019 to keep up with increased demand.

In January, it was announced that the Transnet port at Saldanha Bay would receive R9.65 billion

(above and below) The coal and mine bulk terminal at Richards bay

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fueling service continuity WHO WE ARE NRW’s Trading and Logistics PTY (Ltd) is a leading South African supplier of bulk wholesale fuel, including gas and lubricants. Based in Gauteng, we are wholesale licensed, level 2 BBBEE contributor that is 100% black woman owned. We are ISO compliant and help you to comply and practice ISO OHSAS 18001: 2007, ISO EMS 14001:2004, QMS ISO 2001:2008. Operational since 2009, NRW is committed to a partnership with clients to keep their performance powered on a continuous basis.

WHAT WE DO We source, supply and store refined petroleum products, primarily liquid petroleum gas, lubricants and greases, petrol, diesel and fuel oil, for all industrial and automotive applications. We supply nationally with accounts across a wide spectrum of refineries including Sasol Oil, Total SA, PetroSA, Totalgaz and Engen. Our supply is therefore unrestricted and unlimited.

WHO WE SUPPORT Through our collaborative effort with the company Food and Trees for Africa, “The Trees for Homes” programme contributes to climate change mitigation action and is registered internationally through the Verified Emission Reductions under the Voluntary Carbon Standard (VCS).

Mahlohonolo Maja MANAGING DIRECTOR

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The ro ro (Roll-on, Roll-off) port at Durban

to boost its ability to provide crucial services to the nation’s oil and gas industry. This spend is part of President Zuma’s blue economy drive targeting infrastructure inefficiencies in order to streamline the South African economy for future growth. A completely new rig repair quay will be constructed alongside the building of an offshore supply base.

The ro ro (roll-on, roll-off) port at Durban also received funding to the tune of R438 million, in order to increase its Twenty-foot Equivalent Unit (TEU) handling capacity to 230,000. Earlier this year it was announced that German crane operator Liebherr would be opening a dedicated

R438m The amount of funding received by the Port at Durban

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TRANSNET hub in cooperation with Transnet at Durban, to ensure that the company’s African customers received a level of quality service worthy of their global standards. The hub will contain a specialised spare parts service alongside sales and customer service departments. It will meet the specific needs entailed by the mining industry; namely specially trained personnel and dedicated infrastructure.

S U P P LY C H A I N

‘Earlier this year, it was announced that German crane operator Liebherr would be opening a dedicated hub, in cooperation with Transnet’

Liebherr is opening a dedicated hub in cooperation with Transnet

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www.pwc.co.za

Turning challenges into opportunities

At PwC, we understand that every business is unique. Working with our clients, we first gain an understanding of their industry, and then bring value-adding solutions to the table. Our Advisory practice is proud to be working alongside Transnet to identify opportunities in the following areas: • Strategy support • Capital project and programme assurance • HR change management • Private sector participation • IT effectiveness • Protecting against fraud and corruption To see how we can help your business, visit www.pwc.co.za.

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(15-16635-1)

TRANSNET

S U P P LY C H A I N

Pipelines: Transnet’s pipeline operations have been fuelling the growth of the economy since 1965 by supplying crude oil in addition to petrol, diesel, and aviation fuels; in total, they process 100 percent of South Africa’s bulk petroleum products. Their pipelines handle an annual average throughput of roughly 16 billion litres of liquid fuel and upwards of 450 million cubic metres of gases. The division facilitates many of the major oil companies in South Africa including Shell, Chevron, British Petroleum and Sasol.

The most recent project in the pipelines division has been the construction of the R11.2 billion New Multi-Product Pipeline (NMPP) that spans 715 kilometres between Durban and Gauteng and has been recognised as the

Transnet pipelines handle an annual average throughput of roughly 16 billion litres of liquid fuel and upwards of 450 million cubic metres of gases

Company pipelines handle c.16 billion litres of liquid fuel yearly

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“Every day our employees, contractors, suppliers and customers have an impact on the natural environment and depend on it for their livelihoods” – Garry Pita

largest of its kind in the world. It will play a crucial role providing fuel for countless businesses, and is also responsible for lowering emissions through decreasing the number of freight trucks on the road by up to 60 percent. The NMPP can transport over a thousand cubic metres of fuel per hour which means that domestic and commercial demands can be swiftly met.

Constructing the pipeline represents a massive logistical achievement for Transnet and its partners, who delivered it on time and on budget.

The project facilities will support a 4.2 percent annual growth in refined products along the Transnet Pipelines delivery region which will

YOUR PARTNER IN LEADING FLEET MANAGEMENT SOLUTIONS Flagship Product: Full Maintenance Lease A Comprehensive fleet management solution at an agreed rental, for the use of selected vehicles over a set period of time and distance

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Enables clients to replace vehicles long before reaching economic life span ensuring high availability levels Tailor made solution to fit each client’s requirements

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We bear all risk, maintenance, tyres and disposal costs Known cost structure eases and enables budgeting and planning

Tel: +27 (0)11 523 4300 e-mail: info@fleetafrica.com www.fleetafrica.com

Level 2 BBBEE

S U P P LY C H A I N

Transnet developed its Energy Security and Carbon Mitigation Strategy which looks at operations across a 25 year period

inevitably have a knock-on effect on the local and national economies. The project employed over 12,000 people, drawing significant numbers from the local areas it passed through, evidencing Transnet’s commitment to improving the lot of the communities it affects. Perhaps the greatest challenge that the Transnet team overcame was safely constructing the pipeline across almost 100 kilometres of wetland, without causing any environmental damage.

Corporate Social Responsibility: Pita admits: “Every day, our employees, contractors, suppliers and customers have an impact on the natural environment and depend on it for their livelihoods.� In an effort to reduce the effects of an energy hungry industry, Transnet w w w. t r a n s n e t . n e t

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Railway Axle Manufacturers Swasap is a proudly South African owned level 3 BBBEE manufacturing company commited to the railway industry which it serves and to its clients.

Swasap has been manufacturing railway axles for Transnet Engineering and other railroad operators, rolling stock builders and refurbishment workshops worldwide for the last 65 years.

Management systems at Swasap conform to the highest international quality, safety and environmental standards.

• • • • • • •

SABS ISO 9001 – Quality standard ISO 14001 – Environmental standard American Association of Railways (AAR) – Axle manufacturer approval certification RISAS Approved – UK quality certification IRIS – International Railway Industry standard OHSAS 18001 – International safety standard EN 13261 (Europe)

+ 27 11 873 6666 • info@swasap.com • www.swasap.co.za Rinkhals Street • Industries East • Germiston 1401 • South Africa

Axle Forging

Axles ready for dispatch

School library Handover

TRANSNET

S U P P LY C H A I N

Transnet works closely with local communities

developed its Energy Security and Carbon Mitigation Strategy which looks at operations across a 25 year period.

The initiative is currently being implemented throughout the organisation, aiming to minimise security of energy supply risks, energy costs and emissions from energy use.

This will be harmonised with the overarching business strategy and will be included in the Supply Chain Management Strategy, which incorporates the Procurement, Governance and Enterprise and Development Strategies.

Transnet recognises that its remit extends far beyond simply providing a service, and has to embrace responsibility for the development of the communities it comes into contact

‘Transnet recognises that its remit extends far beyond simply providing a service, and has to embrace responsibility for the development of the communities it comes into contact with.’

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Reliable partner for mining life cycles and efficient dredging solutions

Marine mining solutions

Innovative dredging vessels

Life-cycle support

Royal IHC (IHC) is the world’s number one shipbuilder for the dredging, deep sea and alluvial mining industries offering unrivalled expertise and vast experience in these fields, accumulated over four centuries. IHC has been active on the African continent for decades. Besides offering a number of consultancy and advisory services throughout the various stages of mining, IHC has supplied many dredgers to various clients, varying from trailing suction hopper dredgers to cutter suction dredgers. These dredging tools provide high efficiency and ultimate reliability on a wide variety of dredging projects in Africa. This is ensured by providing unrivalled life-cycle support with our local support office in Africa. This impressive package results in a lower total cost of ownership.

IHC Holland B.V., The Netherlands T +31 78 691 09 11 info@ihcmerwede.com www.ihcmerwede.com

IHC MMP Ltd., South Africa T +27 21 657 17 00 info@ihcmmp.com www.ihcmmp.com

www.bbdsteel.co.za

087 808 2956

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SECTIONS SHEET & PLATE TUBING STAINLESS STEEL ALUMINIUM SPECIALITY STEEL PIPES & FITTINGS

Contact Us Monika@bbdsteel.co.za 084 253 0404 Gwen@bbdsteel.co.za 083 291 2710 Cnr. Doreen and Rosslyn Road, (R566) Rosslyn ext 1

TRANSNET

S U P P LY C H A I N

with. The Transnet Foundation (which has so far received R160 million of funding) is the realisation of the company’s commitment to communities with the goal of: “Uplifting and empowering communities through health interventions, promoting education, enabling effective asset utilisation to provide much needed infrastructure solutions, developing rural sports and deploying its employees’ skills.”

Over the past 20 years, the Transnet Foundation has taken the noble challenge of “nation building” to the core of its operations, using a plethora of initiatives.

Perhaps the best-known is the Phelophepa health train, which, since its inception in 1994 has reached almost 24 million people. The

24m people have been reached by the Phelophepa health train since 1994

Phelophepha train serving the community

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TRANSNET

Complete systems integration company

IN

BUSINESS BUSINESS BUSINESS WE’RE THE MOST EFFECTIVE LEGAL

IN THE

We’re business professionals and legal experts. By using rigorous analysis and applying our astute commercial judgement, we provide legal advice that is the most effective for your business – because that’s our business.

cliffedekkerhofmeyr.com Cliffe Dekker Hofmeyr is a member of DLA Piper Group, an alliance of legal practices.

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TLG6438

TRANSNET

S U P P LY C H A I N

name ‘Phelophepa’ combines elements of Sotho and Tswana dialects and means ‘good, clean health’ which is the precise purpose of using the train network to deliver healthcare.

The ‘train of hope’ offers medical and psychological aid to the most needy, in addition to education programmes. It also won the United Nations Public Service Award in the ‘Improving Service Delivery’ category in 2008 in recognition of the beneficial effect it has on the communities it serves. The Transnet Foundation also supports education and sport in rural schools, in addition to the allocation of various funds and grants for those most in need.

Loading bay Port Elizabeth

The Phelophepha health service utilises the train network to provided much needed healthcare to regional communities.

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TRANSNET

Transnet is seeking to lead the way in exporting both thermal coal and manganese, as well as retaining important iron ore supply links with China

Your business is too important to risk taking chances With a team of more than 300 internal auditors and more than 170 IT Audit professionals KPMG can assist you in effective and efficient management of your organisation’s internal control environment.

We’re proud to be part of the Transnet Internal Audit Consortium. To learn more about leveraging internal audit solutions please contact: Granville Smith Managing Director KPMG Internal Audit Risk and Compliance Services 082 374 5234 granville.smith@kpmg.co.za

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© 2015 KPMG Services Proprietary Limited, a South African company and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. Printed in South Africa. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. MCxxxxx

S U P P LY C H A I N

Planning a successful future for all: Transnet is ambitious about its role in the future of South Africa and, given that it holds a critically influential position as a state-run entity, these objectives seem highly feasible.

Transnet is seeking to lead the way in exporting both thermal coal and manganese, as well as retaining important iron ore supply links with China. Committing to developing the best business possible, it is looking to become the leading logistics hub in sub-Saharan Africa, while leading the field globally by becoming an internationally recognised benchmark for container and heavy haul operations.

Transnet has recognised that, alongside

‘Transnet is ambitious about its role in the future of South Africa and, given that it holds a critically influential position as a state-run entity, these objectives seem highly feasible’

Transnet is looking to become the leading logistics hub in sub-Saharan Africa

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TRANSNET

Transnet recognises that with its ability to facilitate large-scale growth in the South African economy, it also has the power to lift citizens out of poverty and develop communities using education and training 146

May 2015

S U P P LY C H A I N

Company Information INDUSTRY

Supply Chain HEADQUARTERS

Johannesburg EMPLOYEES

50 000 REVENUE

R56.6 billion PRODUCTS/ SERVICES

its ability to facilitate large-scale growth in the South African economy, it also has the potential to use technology and financial power to lift citizens out of poverty and develop communities using education and training.

The scale of investments the company has made and has earmarked for the future is substantial. It is increasingly showing that economic growth can improve the lot of society through developing communities and investing in projects that will contribute to social as well as economic well-being.

• Transnet freight rail (formerly Spoornet – the freight rail division) • Transnet rail engineering (formerly Transwerk - the rolling stock maintenance business) • Transnet national ports authority (formerly the NPA fulfils the landlord function for South Africa’s port system) • Transnet port terminals (formerly SAPO - managing port and cargo terminal operations in the nation’s leading ports), and • Transnet pipelines (formerly Petronet - the fuel and gas pipeline business, pumps and manages the storage of petroleum and gas products through its network of highpressure, long distance pipelines)

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NIGERDOCK

West Africa’s Leading Oil & Gas Services Company Written by: Sam Jermy Produced by: Richard Deane

149

NIGERDOCK The company, which is strategically located on Snake Island Integrated Free Zone in Lagos, focuses on upstream oil and gas services (EPC- Green&Brownfield Projects); Marine Services (Ship Repair & maintenance); Base Support services (Logistics, accommodation, catering, Real estate); Training and Development services (Welding, Fabrication, Machining, HSE, etc).

N

Meji Platform - Chevron

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May 2015

igerdock is West Africa’s leading indigenous upstream oil and gas services company focused on Oil & Gas construction and marine services including offshore fabrication, ship building and repair, industrial training and specialised Oil & Gas and Maritime support. It is strategically located on Snake Island Integrated Free Zone, in Lagos, with immediate access to the open seas.

Snake Island Integrated Free Zone is a leading West African industrial development. Focused on Maritime and Oil & Gas Services and Operations, it offers tremendous opportunities for International Businesses to participate in Nigerian and West African Deepwater Projects.

The company said: “We lead the development of Nigerian content in our industries, achieve operational excellence and growth by

EXCELLENCE DELIVERED

Snake Island Integrated Free Zone

continuously training our workforce and investing in technological resources enabling us to deliver value to our shareholders, customers, employees and the nation.

“Nigerdock adds value to the Nigerian Oil and Gas and Maritime Industries and the Nigerian Economy by providing products and services to world class standards of safety quality and on-schedule delivery.”

Company Vision Nigerdock plans to create and operate a fully functional support centre to the Deepwater Oil and Gas Industry in Nigeria, through the active attraction of investment and creation of employment opportunities resulting from the progressive development of an efficient, secure,

“Nigerdock adds value to the Nigerian Oil and Gas and Mariitime Industries” -Nigerdock

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About U

Wellmann gr shop supply Front end En Heavy lift, W out operatio competent p own and ope trailers(SPMT modular Jac

We Specialise In • • • • • •

Ballast Operations Heavy Lift Operations Modular Weighing & Jacking Marine Logistics & Cargo Barges Land Reclamation & Creek Improvement Front End Engineering Design

Our Partners

B

T 053-321788 F 053-321789 M 08023324933 info@wellmanngroup.com www.wellmanngroup.com

Us

roup offer a one stop y chain solution comprising ngineering and Calculation, Weighing, Jacking, Load ons utilizing skilled and personnel. wellmann also erate Self-propelled modular T),offshore barges, and cking and weighing systems.

Block 22 • N.P.A Housing Estate • Airport Road • Warri-Delta State • Nigeria

SUPPLIER PROFILE

THE WELLMANN GROUP The Wellmann Group evolved in 1991 as a result of successful completion of high profile projects in the Oil and Gas industry, utilizing the resources and expertise of local and international companies.

This evolution has resulted in the current group capacity to undertake major projects in Fronts end engineering, Heavy lift, Marine movement, Modular Jacking and Weighing System. Other members of the group are Pritod Construction, Brazerville International and limelight Entrepreneurs.

She owns and operates a vast fleet of self propelled modular trailers, offshore Barges, synchronized Jacking/Weighing System, Mooring Winches and Ballast pumps. The Wellmann Group have delivered on the following projects, to mention but a few are ; Chevron Agbami FPSO Project, Snepco Bonga FPSO Project, Chevron EGTL Project, Total Ofon Project, Chevron EGP3 Project, Total Usan FPSO Project, Shell Ovhor Concrete Barge Towage, ExxonMobil Satellite Field Project, Chevron Didbi & Olero Concerte Barge Towage and Total OWL Module Loadout etc.

CEO/Founder Chris iyovwaye is a graduate of international studies and diplomacy from university of Benin Nigeria. He hails from Delta State Nigeria and speaks English fluently.

Website: www.wellmanngroup.com

NIGERDOCK

EXCELLENCE DELIVERED

commercially effective support infrastructure, and its continued cost-efficient operation.

The organisation’s training school offers world class training of personnel in the fields of Welding, Pipefitting, Plating and Machining. The Training School has been selected as a centre in Nigeria for the training and certification of welders to International Standards. This programme is being coordinated by the Nigerian National Petroleum Corporation (NNPC) and actively supported by stakeholders in the Industry. It is part of the Federal Government’s Nigerian Content Development Policy for the Oil and Gas Industry.

“The Training School has fully equipped classrooms which can be utilised for most training requirements including Rigging, Safety,

“Nigerdock adds value to the Nigerian Oil and Gas and Maritime Industries and the Nigerian Economy by providing products and services to world class standards of safety quality and on-schedule delivery” – Nigerdock

Bonga FPSO - Shell

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+234 (0)84-301-858 • +234 (0)803 500 6525 info@inspe

A ONE-STOP SHOP FOR ALL YOUR

TESTING & INSPECTION NEEDS

Core Values The ITL Brand is unique because we are a God-fearing people willing to go the extra mile any time, any day. We are resilient and adaptable to the needs of our client and show transparency with moral ethics in our business dealings. Above all we always put ourselves in our client’s shoes to better understand and meet his or her needs.

Km 1 Eleme-Onne Road • Off Eleme Junction Flyover • Opposite Bristow Quarters • P.O.Box 5

ectionandtests.com www.inspectionandtests.com

Who are we?

Founded in 1997 by seasoned professionals, INSPECTION AND TESTS NIGERIA LIMITED (ITL), an ISO 9001-2008 Certified Company, has become a topmost local brand with both an international outlook and a multinational reach – Ghana & USA, and various Nigerian branches.

testing to above 20,000 Psi, Post Weld Heat Treatment as well as Training and Manpower development in Welding Inspection and other Engineering Supervision scopes such as AWS, API & PCN Schemes & Welder Training to IIW Schemes under NIW

Multiplying her tentacles of services from quality control, quality assurance and non-destructive testing services to allied and complementary services in the oil, gas, marine and energy industries – including integrity assessment, technical integrity verification, blasting, painting and corrosion control services, lifting inspection, shop floor & expediting, PMI, OCTG Controls, testing & management, pressure

Our Destructive Testing Laboratory is in a class of its own and offers all that is needed to qualify both welder and procedure for any project scope and specification, manned by mature professionals operating up-to-date ultramodern equipment. Our personnel are trained to the best schemes and levels obtainable in the industry and we are proud of their tenacity of purpose and commitment to professionalism and ethics.

5064 • Port Harcourt • Rivers State • Nigeria

SUPPLIER PROFILE

INSPECTION AND TESTS NIGERIA LIMITED Inspection and Tests Nigeria Limited (ITL) is an ISO 9001- 2008 certified Company involved in Quality Assurance, Quality Control, Project Management, Technical Integrity Verification (TIV), As-Built Verification, Pre-Commissioning & Commissioning Inspection, Material Verification, Boroscopic Examination, Positive Metal Identification (PMI), Leak Testing, Tank Calibration & Measurements, Tank & Tank Floor Inspection, Valves inspection, Corrosion Mapping, Buried Lines identification, Pre & Post Weld Heat Treatment, Pressure Testing, Vacuum Box Inspection, as well as blasting/painting of facilities onshore/offshore.

We also conduct Lifting Inspection for Offshore Containers/accessories and handle Tubular (OCTG) management and inspection to relevant specifications. We carry out basic Nondestructive & Destructive Testing for onshore/offshore operations. Our NDT capabilities include Ultrasonic Flaw Detection, Industrial Radiography, Magnetic Particle Inspection, Dye ! Penetrant Inspection, etc while our Destructive Testing covers Charpy V-Notch, Bend, Tensile, Compression, Hardness, Macro & Micrography, etc.

COMPANY PROF We also conduct advanced inspection and testing services including AUT, PAUT, Eddy Current, etc.

We also conduct various Training and Manpower Development for the Oil, Gas, Marine and Power industries, including QA/QC management, API & NDT Training and Certification, and in collaboration with our Joint Venture partners. Welding Institute of UK (TWI), we conduct welding inspection training to internationally recognised certification. (CSWIP)

NIGERDOCK

EXCELLENCE DELIVERED

Adriatic VIII Refurbishment - Transocean

Quality and First Aid. It has the ability to train and test Welders in SMAW, MMAW, FCAW and TIG processes, in all positions and to any Client’s requirements whilst certifying to Lloyds, ABS and DNV standards. All trainees must attend a thorough induction program including basic safety and quality training.� the management commented.

Pipefitters and platers are trained in practical and theoretical fabrication techniques including manual and machine burning and cutting, layouts and fit-ups, auto-levelling, measuring, preparation methods and tacking.

Machinists are trained in manual and semiautomatic processes including detailed marking out, turning and screw threading on lathes, metal

Eiffel Living Quarters - Total

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NIGERDOCK

1990-2015

POWER GENERATION, TRANSMISSION AND DISTRIBUTION

25

th

Anniversary

BUILDING SEVICES

M E P CONSTRUCTION

Devoted to the development and prosperity of NIGERIA WATER TREATMENT

HEAD OFFICE

1 6 0 March 2015 INDUSTRIAL PLANTS

Abuja 138 Aminu Kano Crescent, Wuse II, FCT Abuja, Nigeria Tel: +234 (0)9 461 1362 Fax: +234 (0)9 461 1364

Lagos 269B Kofo Abayomi Street, Victoria Island, Lagos, Nigeria Tel: +234 (0)1 271 4167 Fax: +234 (0)1 271 4168

office@energonigeria.com

www.energonigeria.com

NIGERDOCK

EXCELLENCE DELIVERED

joining through processes, machining of intricate components, sinking dies, cutting of Gears and machining of bushings and eccentric turning.

Atlantic Aviation Free Zone Enterprise is a Nigerian helicopter services company dedicated to providing safe and efficient aviation support by adhering to the highest standards of integrity and quality.

It is dedicated to serving Nigeria’s offshore oil & gas industry to provide transportation to platforms and other offshore installations, helicopter maintenance repair & overhaul, and Search & Rescue (SAR) operations.

Operations Nigerdock is the leading EPC (Engineering, Procurement and Construction) contractor,

Atlantic Aviation Free Zone Enterprise

SUPPLIER PROFILE

ENERGO

Energo Nigeria-Ltd. is a private, engineering & contracting company founded in 1990. Years of experience has taught us to be fast and agile, keen and smart to take chances and stand for what we believe in - Create value for all our stakeholders.Responding to the needs of electric-power providers, industries, Government and Public authorities in Nigeria and worldwide Address: Aminu Kano Crescent No.138, Wuse 2, Abuja Tel: +234 9 4611362 Fax: +234 9 4611364 Email: office@energonigeria.com

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NIGERDOCK

West Africa’s Leading Oil & Gas Services Company

“We have the best Training School in the country constantly training the Offshore Welders, Grinders, Fitters, Blasters, Painters, Scaffold¬ers and Riggers to the highest levels” – Nigerdock 162

May 2015

specialised in the fabrication of topside mod¬ules, subsea manifolds, jackets, wellheads, satellites, process platforms, process piping, buoys, piles yokes, and double joints.

It also specialised in offshore installa¬tions of pipe spools, supports, platforms and heat shielding including pipe coating and the installation of MOV’s, flowmeters, P&T transmitters, and F&G detection systems.

Management said: “We have the best Training School in the country constantly training the

EXCELLENCE DELIVERED

25,000DWT Offshore Welders, Grinders, Fitters, Blasters, Painters, Scaffolders and Riggers to the highest levels. This attains the best capability and expertise that are required to deliver in accordance with international quality and safety standards. Our team is sprinkled with National and International expertise and experience deliver projects safely, on time and within budget. “The Pressure Vessel Division has the resources to manufacture pressure vesÂŹsels, columns, drums and process plant packages for the

Size of Nigerdocks graving dry dock

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NIGERDOCK

We Value Safety, People, Commitment, Integrity, Adaptability and Flexibility, Trust and Customer Satisfaction

STOCKISTS/SUPPLIERS OF STEEL MATERIALS PIPE FITTINGS & VALVES LEASING CRANE/EARTH MOVING EQUIPMENTS LIGHT & HEAVY DUTY TRUCKS CONSTRUCTION ENGINEERING

0803 309 0279 0903 316 3426 info@palmasinternational.com palmas_international@yahoo.com www.palmasinternational.com 1 0 4 March 2015

NIGERDOCK

EXCELLENCE DELIVERED

Oil & Gas Industry and is ASME U & R Stamp Certified. Process modules and large skid packages are also manufactured in conjunction with the Offshore Fabrication Division.

“The company as a whole is capable of producing design engineering to all international codes of construction and has recently invested in new plant & equipment including a CNC plate cutting machine, plate rolling to 100mm thick, columns & booms for semi-automatic welding techniques, rotators, a pipe profiling machine and more all in accordance with the latest technology.”

Nigerdock’s Shipyard Division is the largest facility of its kind in West Africa with an out-

Dry Dock

Ofon Phase II Projects

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Avoid costly delays.

Partner with us and reduce your downtime for scheduled maintenance and unforeseen shutdowns of your processing assets.

Our integrated nitrogen, cleaning, and drying process maintenance services are designed to do one thing: get you back up and running as fast as possible. And our multi-skilled experts have the experience and proven capability to engineer safe, reliable solutions to shorten your project schedule and recover downtime and financial losses.

Visit BakerHughes.com/PPS to learn how our certified project managers can optimize your maintenance objectives so you avoid costly delays.

Š 2015 Baker Hughes Incorporated. All Rights Reserved. 42753 02/2015

NIGERDOCK

EXCELLENCE DELIVERED

standing history in the marine industry. It is specialised in the fields of ship building, ship repair, maintenance and refurbishment.

It has a 25,000DWT graving dry dock, a 3,500DWT floating dock, quayside facilities and weather proof multipurpose workshops.

Not satisfied with standing still, the company has impressive plans to develop and expand its Shipyard Division with the objective to improve its specialist and engineering capacity and carry out more complex operawtions including rig refurbishment and the ability to build larger vessels. The shipyard management is focused on offering its clients the highest level of service and to consistently improve on its quality and level of workmanship.

SUPPLIER PROFILE

‘The company has impressive plans to develop and expand its Shipyard Division with the objective to improve its specialist and engineering capacity and carry out more complex operawtions including rig refurbishment and the ability to build larger vessels’

BAKER HUGHES

Baker Hughes Process and Pipeline Services (PPS) is the world’s leading service provider for process and pipeline pre-commissioning, maintenance and inspection applications. For over forty years, a staff of more than 1000 professionals, over forty bases worldwide, and the industry’s largest fleet of process and pipeline equipment has delivered a prompt, reliable response to our clients’ needs, combining expertise with advanced technologies for effective cleaning, drying, testing and inspecting process and pipeline systems. We have introduced many ground-breaking services to the process and pipeline industry: nitrogen/ helium leak testing, foam inerting and, more recently, hybrid cooldown technology for process plants.

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NIGERDOCK

SUPPLYING SUPPLYING THE THEFUTURE FUTURE OF OFINDUSTRY INDUSTRY

www.traverrse.com www.traverrse.com info@traverrse.com info@traverrse.com

The The Traverrse Traverrse brand brand isis synonymous synonymous with safety, quality and comfort with safety, quality and comfortand andisis trusted trustedby byworkmen workmenworldwide. worldwide.

OAASIS OAASISGroup GroupLtd, Ltd,aaDistributionNOW DistributionNOWcompany, company,isisaaleading leading distributor distributorofofPPE PPEand andMRO MROequipment equipmenttotoclients clientsininon onand and offshore offshoreindustrial industrialsectors. sectors.

OAASIS OAASISisisan anoffi official cialdistributor distributorofofthe theTraverrse TraverrseSafety SafetyWorkwear Workwear brand, brand,providing providingcost costeffective effectivesolutions solutionsfor forthe thesupply supplyofofhigh high quality qualityworkwear workwearand andPPE. PPE. Contact ContactOAASIS OAASISGroup Groupnow nowfor formore moreinformation. information.

Great GreatYarmouth Yarmouth

Aberdeen Aberdeen

Hand HandProtection Protection Protective ProtectiveEyewear Eyewear Safety SafetyFootwear Footwear Safety SafetyWorkwear Workwear Personal PersonalProtection Protection Kitbags Kitbags

Merchants Atlas MerchantsHouse, House,Gapton GaptonHall HallRoad, Road, AtlasHouse, House,Greenbank GreenbankCrescent, Crescent, Great GreatYarmouth, Yarmouth,Norfolk.

Norfolk.NR31 NR310NL 0NL East EastTullos TullosInd IndEst, Est,Aberdeen.

Aberdeen.AB12 AB123BG 3BG +44 +44 +44(0)(0)1493 1493660690 660690 +44(0)(0)1224 1224893332 893332

www.oaasisgroup.com www.oaasisgroup.com | | sales@oaasisgroup.com sales@oaasisgroup.com

View Viewthe thefull fullrange rangeonline: online: www.traverrse.com www.traverrse.com

Trobatt Technical Company Limited Trobatt specialises in electrical, instrumentation and telecoms construction and maintenance for the oil and gas industries in Nigeria.

080 3583 1403 080 5540 7428 trobatttech.co.ltd@gmail.com

NIGERDOCK

EXCELLENCE DELIVERED

Collaborations Skillbase is a part of Jagal Energy, owners of Nigerdock Nigeria PLC, also located within Snake Island Integrated Free Zone, and an integral part of the Snake Island DISC (Deepwater Integrated Support Centre) Concept. Skillbase is a costefficient logistics hub at the heart of a service centre for the oil & gas industry. It is a model of oil industry design and planning, bringing services and suppliers together on a single site, linked to deepwater quaysides with capacity to handle supply vessels and cargo imports simultaneously.

Skillbase is designed to support exploration and development drilling, subsea construction and maintenance, FPSO Module Assembly and

Bonga Deepwater Buoy - Shell

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MUDIAME INTERNATIONAL LTD

QUALITY IN ALL ONE STOP LABORATORY Mudiame is a one stop Laboratory that offers Mechanical Destructive and Non Destructive Testing, Corrosion Testing, Calibration, Inspection Services, Civil Material Analysis, Training and Certification.

234 8103 56 7175 info@mudiame.com mudiame02@yahoo.com www.mudiame.com

MUDIAME INTERNATIONAL LIMITED 105 IGBO-ETCHE ROAD, OPPOSITE ENARCO RUMUOKWURUSHI, PORT HARCOURT, RIVERS STATE, NIGERIA

Promoting Excellence Through Quality • Heavy Transportation • Insulation Services • Material Inspection • Non Destructive Testing • Lifting Equipment Inspection Contact Us +234 806 822 3540 fairtex@ymail.com jacob@fairtex.com.ng www.fairtex.com.ng

• Heavy Weighing • Fabrication • Load-out • Ballasting • Mooring

Operations Office No.310 Port Harcourt Aba Expressway Port Harcourt River State

Admin Office No.4 Green Village Estate Road

By Ap Filling Station Off Akpajo/Elelenwo Road Port Harcourt, River State

NIGERDOCK

EXCELLENCE DELIVERED

Hook Up, Operations and Maintenance, Integrated Project Teams with offices, accommodation and passenger and material transport links.

In July 2008, Mobil (MPN) in joint venture with the Nigeria National Petroleum Company (NNPC) awarded the procurement and fabrication of Abang and Itut well platforms as part of the Satellite Field Development Project Phase 1 in OMLs 67 and 70.

The project is the first of its kind to be executed in Nigeria where two complete platforms (from mudmat to helideck) are fabricated simultaneously incountry. The scope of work comprised of jackets/ appurtenances, piles, subsea templates, topsides/ associated skids and E&I systems fabrication.

Nigerdock collaberated to refurbish a 16,000 ton rig, a first of its kind in Nigeria.

Satellite Field Projects - Mobil

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AFRICA’S FUTURE ENERGY PROVIDER Fabrication & Construction Electrical & Instrumentation Cathodic Protection Inspection Services Calibration Services Manpower Supply Procurement

WE ARE 100% NIGERIAN OWNED

+234 803 4022 427 +234 809 3964 682 www.petroequipmentlogistics.com info@petroequipmentlogistics.com Block V House 3B Abraham Adesanya Estate Ajah Lagos

Buildwell Plants and Equipment Industries Limited Sarens Buildwell Nigeria Ltd Joint Company of SARENS Group and BUILDWELL Group

Nothing too heavy Nothing too high Block “O”, Plot “4” Gateway City Estate Industrial Area Joint Company of SARENS Group and BUILDWELL Group Lagos-Ibadan Expressway Ibafo, Ogun State Nigeria

+234 7098821313/4 +234 17735598

contact@buildwellng.com www.sarens.com www.buildwellng.com

NIGERDOCK

EXCELLENCE DELIVERED

Then in December 2009, Transocean and Nigerdock along with the Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Content Division of the Nigerian National Petroleum Corporation (NNPC) collaborated to take on a project that was yet another first of its kind in Nigeria, the refurbishment and maintenance of the gigantic jack-up rig - the Adriatic VIII. The rig weighs 16,000 tonnes with each leg measuring 140 metres in height. The scope of work included steel repair and general maintenance. The rig was the first of its kind to be berthed alongside any facility within Nigeria.

Nigerdock employees working onsite.

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NIGERDOCK

Okan Platform - Chevron

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May 2015

A total of 30,000 man hours of training was expended in the training of welders and fitters in a special training program conducted between October 2008 and March 2009. Also, an additional five trainee engineers were assigned by the NNPC’s Nigerian Content Division to Nigerdock for a special on-the-job capacity building program.

Nigerdock and Snake Island Integrated Free Zone are also strategic partners to Snepco (Shell Nigeria Exploration and Production Company) who coordinated the entire operations, logistics

EXCELLENCE DELIVERED

and support services for the Bonga project from Nigerdock’s support base in Lagos. Snepco had heliport operations that included 2 Super Puma Helicopters, crew boats, support vessels, a 2,000 square metre state-of-the-art office, housing and hostel facilities, restaurant and catering services.

Snepco also awarded Nigerdock the topside structural steel and pipe works for final integration onto the Bonga FPSO. The package also included manpower services for onsite fabrication, construction and shop engineering, procurement of materials, blasting/painting, hydro testing of pipe spools, upgrading the living accommodation and load out.

From a safety perspective Nigerdock achieved a distinct accomplishment as the only Nigerian fabrication yard on the Agbami project without a lost time incident.

ExxonMobil’s Erha Deepwater Buoy is a catenary anchor leg mooring buoy and was awarded to Nigerdock in March 2004. The award package included fabrication, integration of the turn table platform, blasting/painting, full testing, pre-mechanical completion, load out and sea fastening. In addition, Nigerdock also provided all the required fabrication engineering.

Additional investment in capacity building via training and certification programs were implemented (scaffolding, Rigging, Machining, Welding and Painting) to boost Nigerian content expectations and to support the project in terms of safety, quality, schedule and cost.

Company Information INDUSTRY

Oil & Gas HEADQUARTERS

Lagos EMPLOYEES

4000 PRODUCTS/ SERVICES

Offshore fabrication, ship building & repair, logistical & real estate, industrial training, specialized oil & gas and maritime support services.

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E20001-F150-M117-V1-7600

Productive plants don’t have to run around the clock, they just have to run efficiently.

Realize the potential of energy-efficient solutions more quickly siemens.com/energy-efficient-production

More than ever before, the key to efficient production lies in implementing energy-saving measures. These range from the use of energy-efficient drives to the shutdown of complex production processes. In the past, this shutdown had to be done manually, making it very time-consuming. Today, a standardized data interface ensures that power consumers can be

switched off centrally in a coordinated and risk-free manner, thus enabling plant operators to achieve energy savings of up to 80 percent during production pauses. We would be delighted to provide you with information about our portfolio of energy-efficient products, solutions and service, which will enable you to quickly achieve lasting gains in efficiency.

Answers for industry.