PEOPLE CULTURE TRAVEL PROPERTY BUSINESS WINE SPORT ENTERTAINMENT
ISSUE 04 R40.00
The chips are down in SA’s premier casino centre debis Fleet management Driving your business forward
Edison Power Gauteng Lighting up SA
Ocean Africa
The premier container line
Afrit
Trailer blazers keep on trucking
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After the ball was over In last month’s South Africa Magazine I wrote of my hopes that by the time the final whistle blew on the 2010 FIFA World Cup, the people whose more than 26 billion pairs of eyes had been trained on our country would think well of us. I invited you to tell us what the tournament had meant for your own enterprises but it is, of course, a little too early for that yet. However, if the bumper crop of South African businesses that spoke to us this month about their successes is the advance guard, there are some very good economic times not too far ahead. Inside this issue, you will find inspiring case studies on more than 20 great companies from across the commercial and manufacturing spectrum. Among many, the automotive sector provides a couple of excellent examples. They say the transport sector is a barometer of the South African economy, so here are a couple of readings that suggest that barometer is rising. ‘Without Trucks, South Africa Stops’, the saying goes, so the recent history of AFRIT, one of South Africa’s most respected and innovative trailer manufacturers – and its biggest – is mightily encouraging in that respect. Before the recession it was producing 16 to 18 units a day; from August 2008 through to October 2009, it was down to between six and ten units a day. Currently it’s back up to as many as 14 units after six months of constant growth.
Editorial
Acting Editor – Daniel Landon Deputy Editor - Samantha Baden Chief sub-editor - Janine Jorgensen Editorial assistant - Inger Smith Sub Editors – Jahn Vannisselroy Janine Kelso Tom Sturrock Alison Grinter Chief Writer – Colin Chinery Writers – Ruari McCallion Jane Bordenave
Business
General Manager - Stephen Warman Research Manager – Don Campbell Researchers – Matt Syder Jon Jaffrey Andy Williams Elle Watson Advertising Sales Manager – Andy Ellis Sales Administrator – Abbey Nightingale
Accounts
Financial controller - Nick Crampton Accounts Margaret Roberts Alexandra Buchlakova
Production & Design
Magazine Design – Optic Juice Production manager - Jon Cooke Production assistant - Justine Mackay
TNT Publishing
CEO - Kevin Ellis Chairman - Ken Hurst Publisher - TNT Publishing Ltd
Then there’s debis Fleet Management, which looks after motor fleets comprising 150 000 vehicles. As part of the local Mercedes-Benz group, its pedigree is global and indicative of South Africa’s coming of age as a hub of the worldwide business community.
South Africa Magazine, Suite 8, The Royal, Bank Plain, Norwich, Norfolk, UK. NR2 4SF
And just in case you should think business is only about the hard-nosed function of making money, what the company calls its Give a Smile team get involved in coordinating staff help for good causes like The Jacaranda Children’s Home in East Lynn, Pretoria which houses 250 children, mostly there because of neglect, abandonment and physical or emotional abuse.
Enquiries
TNT Magazine, 14-15 Child’s Place, Earl’s Court, London, UK. SW5 9RX tntmagazine.com Telephone: 0044 (0)1603 343267 Fax: 0044 (0)1603 283602 emailus@southafricamag.com
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The spirit of the World Cup does, indeed, seem to be living on. www.southafricamag.com
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TRAV EL CULTURE PEOPLE
ISSUE 04
PROPER
ES TY BUSIN
SP ORT S WINE
R40.00
in are down The chips o centre mier casin SA’s pre
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sport A whole new ball game
Rugby player Schalk Brits has migrated north to join Saracens and is loving life in England.
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people Writing wrongs
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culture Crime wave
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travel Safari for the sole – Garonga
Top South African crime writer Deon Meyer talks about the landscapes of the new South Africa.
Crime affects all South Africans, whether they are in the country or in the UK, worrying about loved ones back home. But how do we deal with it?
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Relax and unwind with massages, spa treatments or even picnics in the tree house.
travel Surf and Turf
Missing the ocean and the countryside of home? It’s not quite Cape Town, but Cornwall is a lovely spot to hit the waves and get back to nature.
ement et manag debis Fle business forward
ng er Gaute Edison Pow up SA
ica er line Ocean Afr ier contain
Afrit
ers Trailer blaz
king keep on truc
The prem
Lighting
Driving your
FEATURES
REGULARS
Contents
AINMENT ENTERT
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debis Fleet Management Edison Power Gauteng Ocean Africa Afrit Arwyp Medical Centre Rhodes Food Group Carnival City Casino Balobi Processors General Motors M-TEC Colours Fruit The Diamond Works Trident South Africa Airvent Mahindra MSA Group Rand Refinery Rezidor The Compass Group Vineyard Hotel & Spa KwikBuild Esse Organic Hewlett-Packard Merrypak Tenesol www.southafricamag.com
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Schalk Brits SPORT
A WHOLE NEW
ball game
Rugby player Schalk Brits has migrated north to join Saracens and is loving life in England, but would never say no to donning the green and gold jersey. Written by Pierre De Villiers
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hen Saracens signed Schalk Brits last year, South African rugby supporters weren’t exactly crying into their Castles. Sure, the former Stormers star has freakish skills for a hooker but he has long been beneath John Smit and Bismarck Du Plessis in the green and gold pecking order. Most Springbok fans were just grateful Saracens didn’t get their hands on another target, Schalk Burger, and were quite happy to see Brits migrate north. Few could predict that the man from Empangeni would, in just one year, blossom into the best player in English club rugby. “It’s quite unbelievable how well things have gone,” says Brits, who recently won the prestigious RPA Player of the Year award. www.southafricamag.com
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“In the southern hemisphere, the Super 14 feels like one quick sprint while in the northern hemisphere it’s a long marathon. Also, you often don’t have the big crowds over here that keep you going and you have to motivate yourself. You have to be up for the games because the physicality is just unbelievable. In the Super 14, people try and run around you, whereas in the Guinness Premiership they try and run over you. Mentally, if you don’t Toughening get up for every game During the march to the summit of English club up mentally they will hurt you and rugby, Saracens has stepped on toes. Ever Moving to England you will lose since South African Investments Limited (Sail) has certainly the game.” became 50 per cent shareholders in the club, helped Brits grow there have been grumblings among British a force to be as a player – the rugby administrators and some fans that Sareckoned with 29-year-old adds racens are turning a blind eye to local tradition. With Brits firing scrumming power to The club’s detractors believe it has been turned up Saracens – so the open play flair he into a Rainbow Nation satellite with a South Afrienthusiastic is the possesses. can board, CEO (Edward Griffiths), director of rugby hooker that he “I have learnt (Brendan Venter) and SA-dominated squad, which was rapped over so much about includes Brad Barritt (recently called up to the England the knuckles for how the set squad thanks to his UK passport), Ernst Joubert and Neil giving opposing piece works,” de Kock. Saracens has made no secret that they crave supporters a he explains. the South African expat support – more ammunition for those who believe it is being ‘South Africanised’. one-finger “I’ve been salute – the taught the Despite assurances from Griffiths that Saracens Watfordimportance holds local tradition dear, the club continues to based club of being technically attract UK press attention and has ruffled more has developed good in the scrum than a few feathers at the Rugby Football Union, a winning and how crucial it is which banned Venter from the Guinness Prementality that for a pack to share miership Final that Leicester won 33-27, after he ‘clashed’ with Leicester fans. Griffiths responded makes them the same scrum by suggesting that the union should start runa force to be philosophy. There ning the game like “a modern professional sport, reckoned with. Its is a perception rather than a rural prep school”. success has seen that you have to its fanbase expand be big and heavy and Brits is excited to play in the that South African expats are increasingly front row, especially in South Africa, but you seeing Saracens as a home away have to be good technically.” from home. Brits also feels he has toughened up “We are an English club with a South mentally while in the UK. “Mentally, playing African taste and we really hope to get some over here is a lot tougher and it takes a lot South African support,” he says. more out of you,” he points out.
“I felt I needed a change after spending quite a long time at the Stormers and, to be honest, thought I would go to France first to experience the lifestyle over there. But then [Saracens director of rugby] Brendan Venter asked me to move to England. He said he was going to rotate me, which meant I would play fewer games and have the chance to travel a bit more. I decided to go to Saracens and what a great decision it has been.”
Ruff ling feathers
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Schalk Brits SPORT
I felt I needed a change after spending quite a long time at the Stormers
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“We just want as many people as we can at the ground. Our marketing team has worked hard to get crowds of 40,000 and 50,000 and that has made a big difference. At Saracens we have worked as hard off the field as we have worked on it.”
Travelling is fantastic While Brits has a laudable work ethic, he clearly also has the capacity to kick back and relax. In fact, few South African players who have relocated to the UK have embraced their new surroundings more than the hooker. When SA Times caught up with him, he told us he was tackling the Wentworth golf course for the first time the next day and he was still buzzing from a trip he took with his girlfriend to Rome.
“The travelling has been fantastic,” he says. “I love that London is so central and all these great sights are within reach. You are also just two hours away from the beach so I’m loving life at the moment.” Brits has made such a success of his trip north that one wonders if he thinks about South African rugby at all. If Springbok coach Peter De Villiers put in a call, would he be available to add to his three caps? “Of course, I would,” Brits stresses. “I’ve made myself available to play for South Africa from the day I started living, eating, breathing, playing rugby. Playing for the Boks is still the highest honour. I would like to play for the Springboks but selection is really out of my hands. I can only do my part on the pitch and see what happens.” END www.southafricamag.com
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wrongs
writing
Top South African crime writer and keen motorcyclist Deon Meyer talks about the landscapes of the new South Africa, misleading statistics and his new book Thirteen Hours. Written by Susan Miller.
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rime fiction in South Africa is more popular than ever, with authors of this genre topping the best-selling charts repeatedly. This, says writer Deon Meyer, shows we’re normalising …
Why is crime writing so popular? We are the same as the rest of the world. Crime fiction in the UK and Ireland is the no 1 genre. In Australia, Europe and US, it’s a phenomenal success, which could be partly due to television series such as CSI. It shows a normalisation of literature in South Africa. For the past 16 years we have had to get used to freedom of speech. 10
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Is there a writers’ community? South Africa has a number of literary festivals where we see each other. We keep in email contact and some black crime writers have emerged over the last two years – it will grow.
Your books are translated from Afrikaans. Do the meanings change? No, not at all because I am lucky enough to spend some time with the translator. I trust her totally. It helps to work together. Stories have a universal language, but having said that, Cape Flats Afrikaans is unique – it has a joie de vivre you can’t capture in translation.
Deon Mayer PEOPLE
Benny Griessel in Thirteen Hours. How did he come about? Benny appeared in Dead Before Dying, my first translated novel. It was one of my more noir novels and its protagonist was suffering from depression. Benny was light relief as a ‘funny drunk cop’ but I discovered layers to his character. I owed it to him to bring him back …
Do characters become real to you? You know them like your family.
Do real-life police battle drink and drug problems, too?
Deon Mayer F
act file
Born: 1958 in Paarl. Books: Published first Afrikaans novel (1994) Dead Before Dying (published in English in 1999) Dead At Daybreak (2000) Heart Of The Hunter (2003) Devil’s Peak (2007) Blood Safari (2009) His latest novel, Thirteen Hours, is published in the UK by Hodder, and is a number one best-seller in South Africa. Two SA filmmakers have optioned its film rights. Lives: In Melkbosstrand in the Western Cape with his wife Anita and their four children. Interests: Aside from his family, his big passions are motorcycling, music – Mozart and rock ‘n’ roll, reading, cooking and rugby – go the Bokke! Before becoming a full-time writer, the motorcycle fan “had the privilege of working for BMW” and he even got to reenact a scene from the Heart Of The Hunter where protagonist Thobela Mpayipheli is closely pursued across South Africa on a stolen BMW motorcycle.
Yes. Wherever I go in the world, I try to make contact with the police. In Paris, I asked a detective what the biggest problem facing French police was. He said it was the psychological effect of the work – and overwork. Police members have a high rate of suicide, alcoholism and depression.
Why do they stay in the force? A lot of police say they have a calling. They love the work but the two problems are that they don’t get paid much and the huge amount of stress.
How do you create characters? I am usually thinking about the next book while I write one and I will think about what kind of character I need. www.southafricamag.com 11
Deon Mayer PEOPLE
Zulu feminist Mbali Kaleni is a great character in Thirteen Hours. Yes, she first appeared in a short story but she didn’t want to stay a short story character. In fact, she is going to carry on in my next but one book.
What was the inspiration for her? I spoke to female policewomen. They are having a tough time, especially the black policewomen. They say policing is very much a man’s world, but are determined to carry on. They bring something different to police work – women have a bigger capacity for empathy and perhaps a greater ability to distance themselves from the work.
How do you get ideas? It’s a slow process – organic and it changes shape. I do research, read and think about the next one while writing.
rimee/thriller writheorosf South C e t i r W ere are 40 crinimthe Who’saWre women.
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Who are your influences? I think it’s probably the reading you do between the ages of 14 and 24. People like Ed McBain and John McDonald. Hopefully, by the time you have written your third book you have found your own voice.
What is your take on SA crime? The media, especially the foreign media exaggerate it. Comparing South African crime statistics to the EU and US is nonsensical. It’s all about socio-economic issues. In South Africa, 86 per cent of the crime is domestic and involves alcohol and drugs, and 85 per cent takes place in previously disadvantaged areas. Downtown Cape Town – by which I mean Adderley Street etc, has a comparable crime rate to cities in Ireland and Wales. None of these statistics show me that South Africa is a crime-ridden country. I would like to take UK journalists and show them what is happening across the white/black divide – ‘it’s a miracle’.
What is your hope for South Africa? That we grow as a country, eradicate poverty and that all our children get the opportunities they deserve.
And Julius Malema? It’s part of a democracy to have debate. A lot of what he’s saying – about the land issue for instance – makes sense. He is providing a voice to the impoverished rural masses. He is insensitive, but then many white South Africans are making racist comments. Let’s talk to each other with respect. That is where Julius gets it wrong.
» Thirteen Hours has been shortlisted for the CWA’s International Dagger 2010 Award for crime, thriller, suspense or spy fiction novels translated in English. See deonmeyer.com
Crime in South Africa culture
Crime wave
Crime affects all South Africans, whether they are in the country or in the UK, worrying about loved ones back home. But how do we deal with it? Written by Susan Miller.
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outh African crime seemed to follow me around in London in May. I went to watch a film about it, read two books about it, attended a protest march and went to hear my favourite archbishop talk about it – actually that’s not true; Archbishop Desmond Tutu was here to talk about forgiveness and peace but he touched on the subject. While South African author Deon Meyer suggests the statistics have been misrepresented (see page 9), director/writer Savo Tufegdzic, who was in London to show his film Crime – It’s A Way Of Life, suggests
“crime has come to control our daily lives, thoughts, movement, the way we live”. A bumper ride through escalating violence, Crime … asks what happens when a victim is pushed too far. But also, why are SA criminals so brutal?
REAL-LIFE DRAMA Then it became real. A relative of mine was attacked in his Gauteng home. He was held at knife-point and his hands and feet were tied together with barbed wire. He was gagged and threatened with being drowned. His assailants took his bank cards, ransacked his home www.southafricamag.com 13
Scenes from South African film Crime – It’s A Way Of Life (also pictured on previous page)
and stole his car keys. He was held for seven hours. Luckily, as we tend to say, he was not harmed further. “We’re all living with post-traumatic stress disorder,” suggests a visiting cousin. She’d just finished telling me her news: a colleague in Cape Town, was hijacked, driven some distance and then shot and killed execution-style. About 150 South Africans marched to the London High Commission in May, to protest the crime rate. Accused of being a right-wing event, the majority of marchers I spoke too stressed that they were concerned about the violent crime affecting all South Africans. Victims are tortured or raped when their assailants could simply walk – or drive – away. Why? Nothing says that we have a normal society. Brutal crime crosses race and class lines, as author and journalist Kevin Bloom, who was in 14
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London to promote his book Ways Of Staying (Portobello Books, £12.99), points out, the majority of victims are black.
dealing with the past Alec Russell, author of After Mandela (see review on page 23), suggests three possible causes: the ever-increasing inequality gap, the high levels of poverty, and the brutalisation of South Africans who lived under apartheid. The first two factors, he suggests, are present in many other societies where the crime is nowhere near as violent. Legalised apartheid and its institutionalised racism, however, was unique to South Africa. Both the legacy of apartheid and the legacy of resistance to its forces have left scars on our society – and the police are historically mistrusted, underpaid and overworked. If white South Africans are honest, it was naive or cynical to rely on Nelson
Crime in South Africa culture
Police figures » 50 murders a day in South Africa – average 18,000 murders from April 2008-March 2009.
Director Savo Tufegdzic and actor Sibusiso Mamba
» 2.1 million cases of serious crime in that period of which 32,7 per cent were contact crimes – SAPS acknowledges these cause serious damage to victims and leave scars on society’s psyche. » Analysis of 1348 murder dockets reported in April 2007-March 2008 show significant shifts. Murders resulting from other crimes increased from 12,4 per cent to 15,9 per cent and the number of murders caused by vigilantism increased from 1,4 per cent to 4,8 per cent. SAPS says this “mirrors increasing levels of violence used during crimes and that the public’s level of tolerance with regard to the incidence of crime has reached breaking point”. (Source: SAPS crime statistics April 2008-March 2009)
Mandela and Tutu’s ‘Rainbow Nation’ magic and limited workings of the TRC to bring our country together. Person after person I’ve interviewed has highlighted that things have not changed enough for most South Africans.
love of the country Archbishop Tutu, here for the inaugural lecture of The Forgiveness Project, agrees. He says, “If the gap between rich and poor is not dramatically narrowed, then we can kiss reconciliation goodbye.” Speaking to the Guardian, he says multiracial harmony remained elusive. “We have to sit down together and ask: ‘Are we completely healed or are all of us deeply injured?’” Quite so, says Bloom, who wrote his book after his cousin, designer Richard Bloom, was murdered in 2006 along with actor Brett Goldin. Ways Of Staying is not an easy read – Bloom took a long, hard look at a number of
violent episodes from 2008 to the end of 2009. He stresses it was written to start a discussion as a “privileged white South African and promote honesty about South Africa’s history and historical imbalances”. Many South Africans are passionate about the country – a family which was attacked and whose daughter was raped left for the UK at the end of the book. I ask Bloom what has happened to them. He answers that the daughter is still studying in the UK, but the rest of the family, including the mother who was badly beaten, have headed back to Gauteng. “South Africa gets under your skin,” he says. Certainly my relative has no plans to leave – although he’s become more cynical and worried. For our own peace of mind, those of us who care deeply about South Africa have to find ways to help improve the situation. The question is, how? END www.southafricamag.com 15
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Garonga TRAVEL
Garonga S afari for the soul -
Relax and unwind with massages, spa treatments or even picnics in the tree house. Written by Sara Essop.
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e hurtled down the ochre path, the cool wind exhilarating, in our faces. Lawrence, the game ranger, maneuvered the Landrover expertly around the torn-down trees, through dense bushes and around dusty bends. It was evidently the path less traveled. At one point, a wildebeest emerged from the bush and ran across the path in front of us. We missed it by inches, unshaken. We’d already had some rhino run past us. We had a mission. We were in search of the mighty Garonga, the elephant, as named by the Karonga people. On the two-way radio, Lawrence was sharing information on the elephants’ whereabouts with a game ranger from neighboring Makalali, who shared the 26000ha conservancy with Garonga. We felt closer and closer and then suddenly we turned a corner, and there they were. An old male and a young female, enjoying an evening meal. Nearby, we could hear more elephants trumpeting. We sat about 6 meters away in full view of the tusked giants, and watched them, enjoying the tranquility of the scene, while the last embers of the orange African sun faded over the horizon. www.southafricamag.com 17
Garonga TRAVEL
This was our second evening in Garonga. As the knowledgeable game rangers regaled us with interesting tales, they asked us what animals we would prefer to track. Not having seen any elephants for the past three years in the concrete jungle of Johannesburg, we had told Lawrence that we wanted to see the mighty tuskers. He hospitably obliged. This was a characteristic consistent among all the employees at Garonga. Each one was eager to please. Each one also had their own fascinating story to tell, gleaned from an impressive resume which had culminated in them being selected at Garonga. We had spent a lazy afternoon lounging against cushions in a cozy tree house overlooking the dried riverbed. The picnic lunch spread out for us was just what the doctor ordered for the hot summer day. We could see baboons and warthogs roaming around from the excellent viewpoint. We felt part of their environment, unobtrusive. 18
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Thoughtful staff ensured that we were escorted everywhere, however once we were safe and sound at our destination, we were left alone so as not to impinge on our intimate privacy. One could also have a sleep-out experience for a rich night-time game viewing experience. Garonga Safari Camp is an exclusive 12 bed camp in the greater Makalali Conservancy situated west of the Kruger National Park. It is a six-hour drive from Johannesburg and a three-hour drive from Nelspruit. It was opened in 1997 by a British gentleman and is targeted mainly at the foreign market. However, it is becoming increasingly popular with locals as well. The luxury tented suites have indoor and outdoor showers and boast their own platform decks with hammocks. The tents look down onto a dry river bed. Small animals drop by regularly and one need not wait for the game drives in order to view game. There is also now a second camp called Little Garonga
(since 2007) that has a slightly different style (not semi-tented), and can be booked out for private parties of up to 6 adults and 2 children – or on a suite-by-suite basis. Morning and evening game drives can be taken with the rest of the day at one’s leisure. One can get some refreshing sleep, get a massage or other spa treatment, have a picnic in the tree house or swim in the swimming pool. The options are plenty. In terms of game, there are elephants, rhino, lions, leopard, cheetah, hippos and numerous types of plains game, inter alia. A hearty breakfast is served after the morning game drive and high tea is served before the evening drive. A sumptuous dinner is then served after the game drive. On winter evenings, a huge fireplace is lit where guests can gather before dinner. The limited number of guests allowed at any point in time ensures that each guest receives individualized attention. One gets the feeling that a lot of work happens behind the scenes to make sure that one’s stay is
comfortable. From the welcome committee, to the personalized handwritten notes, to the resident massage therapist, every step is taken to make guests feel pampered. Attention to detail is evident. One evening, on returning to our room we found the room and bathroom bathed in rose petals and tea-light candles. Very thoughtful…and perfect for a romantic sojourn. This is probably one of the reasons why it is such a popular wedding venue. We were there for two nights only but a minimum stay of three nights is recommended. We felt ultra-special and wanted for nothing. It was the perfect recipe to de-stress and we felt like children again after just having had our first child. It was truly a safari for the soul and we hope to return there again soon. END www.southafricamag.com 19
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Cornwall travel
Surf and turf
Missing the ocean and the countryside of home? It’s not quite Cape Town, but Cornwall is a lovely spot to hit the waves and get back to nature. Written by Inger Smith.
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ow many times have you woken up on a Saturday and yearned for the salty smell of the ocean or fantasised about an early morning plunge into the waves, just like you used to do at home? A lifestyle by the sea can be one of the hardest things to leave behind in South Africa, but the good news is that the UK has a cracking coastline and it’s feasible to do more than just dip your toes into the glorious waters of Cornwall on a weekend away.
Surf’s up “Can I have one with built-in heating, please?” I beg our surf instructor, Daniel, as he hands out the wetsuits. He shakes his head and smiles. “Nah, you don’t need it this time of the year, this one will be just fine.” Let’s just say that I’m sceptical. We’re standing on windy Widemouth Bay in Bude, Cornwall, ready to jump into the Atlantic Ocean. It might look nippy, but once I’ve managed to wiggle into my skintight wetsuit, I start feeling pretty invincible.
The next step is to get on to your feet while riding the surf. Yeah, it’s that sweeping pop-up motion that looks so easy when performed by professional boarders but is slightly trickier for the rest of us. Once, however, you manage to master the manoeuvres, the rewards are tremendous. After plenty of failed attempts, the pieces finally fall into place. And as much as it isn’t very graceful, I’m up on the board – standing, and thoroughly enjoying my ride as the wave takes me all the way to the beach.
Cornish countryside
Our trip to Cornwall is not only about water play. Curl Curl Surf organises weekends away in Cornwall and Devon for anyone wanting to combine a weekend of surfing with a fun and relaxing break in the English countryside – perfect for homesick South Africans living in the city. From the moment you step into the van in Hammersmith, you no longer have to worry about a thing. Just kick back, sip your beer and the Curl Curl when to go Curl Curl Surf team will do the driving, organises trips to Cornwall cooking and washing-up – all and Devon from March while you relax and enjoy the until October. surfing, the scenery, farm GETTING THERE Take the Curl life, and good nights Curl Bus from Hammersmith, among friends. or hire a car at easycar.com/
I thoroughly enjoy my ride as the wave takes me all the way to the beach NEED TO KNOW
Cruise Control Before we jump in, it’s time for a surf lesson on the beach. We learn how to position ourselves on the board, the secrets of paddling and how to get into an upright stance. Easy. Now we just need to do the same on water … Once in the sea, the first step is to catch the waves while lying down on the board, called the ‘prone position’ in surfing terms. And as the swell hits the board, we’re off – woo hoo! 22
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tntmagazine and receive a 5 per cent discount.
GETTING around The Curl Curl
team will do the driving so you can sit back and relax.
going out A pint of beer costs from £2.50. accommodation B&B accommodation is included in the package. SEE curlcurl-surf.co.uk
Farm Life Our home for the weekend is a beautiful cottage from the 1840s, on a 300-acre farm. And what’s better than waking up to the smell of fresh coffee, tea – served in the biggest teapot I’ve ever seen – and a full English
Cornwall travel
breakfast to be savoured in a rustic farm kitchen before heading out to the beach for a few hours of surfing. After that, I have time to explore the surroundings, feed the cows, herd some sheep and even drive a tractor, before chilling out in the living room in front of the open fire and a huge flat-screen TV. Famished after a hard day’s surf, I sink my teeth into hearty homecooked organic food and enjoy a glass of wine in good company.
Not only is my weekend in Cornwall a lovely, recharging break from London, but I discover that the UK’s coastline and countryside are a wonderful tonic to keep those twinges of homesickness at bay.
» Inger Smith went on a surfing weekend to Cornwall with Curl Curl Surf (020 3086 9995; curlcurl-surf.co.uk). A weekend is £240 (selfdrive), or £320 (coach transfer). Includes surf hire, lessons, accommodation, food and drinks. END www.southafricamag.com 23
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debis Fleet Management FEATURE
THREE-POINT
S TA R S One of the biggest headaches in fleet management is maintenance and servicing. debis Fleet Management takes the pain away, Ruari McCallion reports.
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debis Fleet Management FEATURE
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ust imagine for a moment that you are an owner or finance director of a large company, such as Telkom, for example. Your core business is telecommunications – creating, managing and maintaining the infrastructure that enables people to keep in touch with each other, for business or personal reasons, across the country and all over the world. Your time should be filled with databases, capital investment in cables, hardware, switching hubs and uninterruptible power supplies and the like. Or maybe with ensuring everything went just right in the World Cup, whether the draw or the news feeds for the thousands of journalists. Perhaps your attention is needed on revenue matters, such as customer account collection coming in and maybe salaries going out. That’s enough to have on your plate without constantly having to turn your attention to one of your account managers, who has had an accident somewhere out in the bush. He needs a breakdown truck, transport into town and a new vehicle, in order to get him around. And wait a moment – someone
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Aluwani Ramabulana, CEO, debis Fleet Management
else isn’t happy with the new tyres he got at the last service. They don’t seem to be the standard specification. And now someone else is coming in to say that it seems there are a few trucks that are overdue for service. If, like Telkom, a company has more than 19,000 vehicles on the fleet, these headaches become so commonplace that they can threaten overwhelm the company’s normal business.
United Auto Ferry SERVICE EXCELLENCE, RIGHT ON TIME
United Auto Ferry is a close corporation that was established in 2006. The entity is a logistics company, specialising in the transportation of commercial and passenger vehicles and fleet management. The company is 100% black owned and seeks to benefit from the competitiveness of the automobile industry in the country, with strong retail sales enjoyed by the sector and the vehicle manufacturing setups in the country presenting opportunities for downstream industries involved in the transportation of such vehicles. The company is owner managed by the two members and is headquartered in Jet Park, in the East Rand, Johannesburg. The main objective of the business is to ensure satisfaction of its chosen niche markets and establishing itself as a premier service provider in the vehicle logistics industry.
THE SERVICES OFFERED UNITED AUTO FERRY CC is a driver and transportation services solutions provider to fleet management, car rental and dealerships. The company’s services include outsourcing of drivers from code 08 right up to code 14. We deliver and collect passenger vehicles, Sport Utility Vehicles (S.U.Vs), trucks and buses for delivery to destinations required by the clients and dealerships within all areas in South Africa.
MISSION STATEMENT Our mission is to: Add value to the companies that we do business with by rendering the highest possible standard of service. Ensuring mutual, long term relationships with our clients based on trust and insights gained through dealing on an exclusive basis.
VALUES The following set of values is embodied in the organisation’s service charter. l Customer service is the cornerstone of our business and cannot be compromised l We conduct our business openly, honestly, with transparency and integrity
CONTACT US: 10 Rudo Nell Road, Jet Park 1459 P.O. Box 26727, East Rand 1462 Tel: 011 823 1468 Fax: 011 826 2299 www.unitedautoferry.co.za
debis Fleet Management FEATURE
Okay, the scenario above is not likely to cross the financial director’s desk on a daily basis but there will be someone – or, more likely, an entire department that will spending all its time on dealing with the fleet. It isn’t the core activity but it takes up a lot of time and effort. Is there not a simpler way of dealing with it? The short answer is a definite yes. Businesses have been sued to outsourcing non-core activities for years, now – and there is no way fleet management is a core activity for most organisations, be they in telecommunications, business systems, mining or government. debis Fleet Management prides itself on taking away the headaches of running vehicles. It provides a single source for all aspects of management. It will schedule servicing and maintenance for a fixed monthly fee, so the corporation knows what its overheads will be, each month. “Our core business is managing and reducing costs for our clients. We save them a lot of money – and we provide predictability,” said Aluwani Ramabulana, CEO. It has grown
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Barloworld “Barloworld Toyota Centurion is one of the flagship dealerships of Barloworld Motor Retail. Our brand philosophy and values attempt to ensure that every customer will have the opportunity to experience a seamless mobility solution every time. By focusing on key aspects such as quality, excellence, efficiency and on time service delivery, we strive to keep the end customer satisfied. We have found that relationships are built on mutual respect and transparency. In our experience both are good building blocks for successful partnerships”
fast and far since the late 1980s, when it became the specialist fleet management operation of Mercedes-Benz, whose famous three-pointed star of Mercedes-Benz has been in South Africa since the 1950s. Its role, and that of its support services, have changed a lot in the last 20 years. It was in 1998 that debis Fleet Management took over control of service and maintenance for its own vehicles and those of some other companies, as well.
BARLOWORLD TOYOTA CENTURION
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debis Fleet Management FEATURE
“debis initially ran services, such as IT and finance,” said Ramabulana. He is a chemical engineer by training and actually began his working career in the mining industry, with a diamond company. “I enjoyed that but I wanted to find a more commercial environment. So I did an MBA and joined a small consultancy company, named Blue Peter. Its founding members were all former Anderson Consulting (now Accenture) people.” He then gained experience in corporate finance with Nedbank and Absa. He joined DaimlerBenz in 2006 and became CEO two years 30
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later. That company has a high profile itself, so it is worth asking why it retained the debis branding, rather than using its own when it moved into fleet management. The reason is that debis is associated with support services and had a good reputation in the marketplace. It capitalised on its customers’ familiarity with the established brand. Its core business has changed from IT and finance: 90 per cent of its activity is now on fleet maintenance and management. and it is not limited to Mercedes vehicles – which is another reason for keeping the debis name.
T E R N AT I V E ! 2
emissions.
debis Fleet Management FEATURE
“Most of the work we do is with MercedesBenz (M-B) vehicles,” Ramabulana explained. “All M-B vehicles in South Africa are sold with a maintenance plan, which covers the first 90-100,000 kilometres or five years.” debis is headquartered in Johannesburg and has representative offices in each of South Africa’s provinces. While servicing is carried out by M-B dealerships, Debis manages the administration. “The individual takes the car to the dealer, who uses our database to manage the claim.” Such peace of mind is a clear advantage to the customer – but what does the dealer and M-B itself get out of it? “We bring efficiencies,” he replied. “Management and administration are our core competences. That frees the dealers and M-B itself to focus on its core abilities and to leverage its skills.” debis’ real value-added service comes into its own when dealing with fleets – a fact that is illustrated by the photos of other vehicles on its website. A highperformance Mitsubishi Lancer, in particular, caught the eye. “When we deal with corporate clients, we often find that we are taking over a
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MiX Telematics MiX Telematics Enterprise offers comprehensive fleet management and driver safety solutions for large fleets, with vehicle telematics being our core business. Tailor made services offered to customers across a range of industries include cold chain, risk, location, driver and fuel management as well as vehicle tracking and stolen vehicle recovery. Our successful partnership with debis Fleet Management has led to the design, development and implementation of innovative and ground breaking solutions that have enabled them to be at the forefront in utilising vehicle related telemetry technology to provide a ROI based on wireless trailer tracking, vehicle and driver management systems.
mixed fleet. It may have Mercedes-Benz, Fords, Mitsubishis and other marques,” said Ramabulana. The fact that its activities are not limited to Mercedes vehicles is another reason for keeping its original name. debis provides a single source for all aspects of management. It will schedule servicing and maintenance for a fixed monthly fee, so the corporation knows what its overheads will be, each month. “Our core
debis Fleet Management FEATURE
business is managing and reducing costs for our clients. We save them a lot of money – and we provide predictability.” A large and increasing proportion of debis’ R700 million annual revenues comes from managing commercial and municipal fleets. It has a total of 150,000 vehicles under management, of which 13,000 and rising are on full fleet management contracts. Demand for those services is high and growing. “We serve a mix of public and private sector customers,” he continued. “The government has prioritised improvement of public sanitation, water and waste infrastructure.” Achieving that requires a lot of trucks, and they don’t come cheap. “Instead of buying a fleet of waste compactors outright, which is expensive and requires a lot of management, municipalities can lease them. We are 34
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developing products and packages that address these growth areas.” Growth is the operative word. debis is 65 per cent owned by Daimler-Benz and 35 per cent by a black economic empowerment grouping and has a level 2 rating. It employs around 137 people directly and it has been expanding fast. Its current pipeline of deals will see it grow in the region of 35-40 per cent in 2010. That growth is coming through expansion in the market itself and by the company’s ability to increase its share. “One big deal we won was part of the World Cup. It involved leasing of vehicles and was pretty big – R138 million in one payment,” he said. These huge deals are very welcome but the World Cup happens only every four years and it isn’t likely to be in South Africa again for a couple of decades, at least. Ramabulana
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debis Fleet Management FEATURE
agreed, but there are other pressures and influences around. “We have just won another contract for waste compactors for a big municipality. It is for R250 million in asset value; we amortise that and turn it into a monthly leasing payment.” debis’ largest single customer is Telkom, for which it provides end-to-end fleet management. In doing so, it has had to develop skills and expertise that have made it a global centre of excellence for the entire Daimler-Benz corporation. There will continue to be a lot of growth in municipal business
in the medium term, as the cities grow and the services they need so desperately are provided. So the World Cup business is icing on an expanding cake, rather than anticipated repeat business. However, the rest of the world has seen credit availability squeezed extremely tightly over the past few years and South Africa is no different. So how has debis escaped the consequences? “We are affected but we have a strong parent company, in Daimler-Benz. We are 36
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funded by them and we are able to go to the market and issue bonds,” he explained. With a strong name like Daimler-Benz behind them, the bonds find willing buyers. “In fact, the credit crunch has worked in our favour; we find ourselves better-placed than many of our competitors. The cost of funding went up but we can still get money. We actually won a deal from a competitor in the Eastern Cape, because we could raise finance and the competitor could not.” debis invests heavily in training and skills improvement, and not just under its own roof. Its strategy for corporate social responsibility includes initiatives to improve literacy in the communities, especially in rural areas. Rally to READ brings together debis, READ Education Trust and the Financial Mail to address underdeveloped, under-resourced and inaccessible schools and seek to ensure that their teaching programmes are on par with the most advantaged schools in the country. Its Youth Entrepreneurship Development Programme seeks to address soaring unemployment by helping young people to become selfemployed by helping with training and gaining vital experience. It was successfully piloted in Gauteng in 2002 and has now trained over 450 unemployed youth, some of whom have gone on to become preferred suppliers to debis itself, the taxi Industry and government. It is involved with dealer programmes, from junior employees to middle management, and offers a lot of tailor-made courses. “A lot of our intervention is to upskill our own employees. We are working in a specialist market and it is difficult to find people with the right skills,” Ramabulana explained. But debis has some things going for it that help to attract the right potential. “We work on improving our working environment as a means of retaining people. We offer company car programmes, which is a recruitment and retention tool. Our motto is that we are a ‘great place to work’.” It is also a great company to do business with. END
P ower to the P eople
Edison Power Gauteng has been providing electrical installation services to the South African market for five years. Jane Bordenave talks to founding Managing Director Bazil Govender about the challenges and opportunities facing his company
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Edison Power Gauteng FEATURE
F
ounded in 2005 by Managing Director Bazil Govender, Edison Power Gauteng is one of South Africa’s major players in electrical installation. Working on a wide range of industrial and commercial projects, the company handles on average ZAR 650m worth of projects at any given time. In addition to its work in South Africa, the company also works in neighbouring countries, such as Swaziland and Zambia. Edison Power Gauteng is committed to the quality of its work, providing a good service and delivering projects both on time and within budget. “We have a dedicated programme to ensure we stay within budget,” says Mr Govender, “As soon as we are awarded a tender, we set out to procure all the materials, especially those that are copper based. By taking this approach, we are able to hand over the completed project on time and within budget.” With the volatile nature of the copper markets, this is an approach that makes strong business sense, “being able to buy these raw materials upfront, as we do, is of enormous benefit, as then project budgets are not susceptible to price changes in the market,” he explains. Additionally there is the global problem of copper theft due to current high value of the material, “it’s an unfortunate occurrence, and something that we have been subject to in the past. However, now we have arranged with our suppliers to keep the copper at their facility once we have bought it, to minimise risk of theft.” With the firm working on such a range of projects, from hotels to mines, it is experienced in addressing the different requirements and challenges each project can throw up. “When you look at a shopping centre, for example, one of the most important things, aside from standard safety practices, is to ensure that all the electrical wiring and peripherals are completely out of site and reach of any members of the www.southafricamag.com 39
Edison Power Gauteng FEATURE
public who are in the building,” explains Mr Govender, “When dealing with industrial sites, access requirements are different, and other sets of project-specific health and safety regulations come into play.” One of the hurdles that such industrial projects have thrown up is when Edison Power Gauteng was working on a smelter plant in Richards Bay, “The design for the plant was actually a German one, so we had to look at these specifications and work out how to make them fit to the South African market. It was a challenge, but by working with everyone on site we were able to make it work.” Most recently, the company has been involved in one of the most exciting events to take place in Africa for years, “Of course, the main story in South at the moment is the World Cup,” says Mr Govender, “We were fortunate enough to win a tender for two of the major stadiums – Orlando Stadium and Soccer city, both in Soweto.” While there was competition for the contract, once again Edison Power Gauteng’s reputation for excellence preceded it, with the company being recommended to the organisation committee by previous clients.
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As well as focussing on delivering excellence for to the client, the business is also heavily involved with corporate and social responsibility initiatives, “In 2010 we have been working in the educational sector, installing computer rooms in rural schools. The year before we were working on medical projects and before that it was sports,” Explains Mr Govender, “At the end of the financial year in June the board will meet and during these discussions we will decide where we will focus our CSR efforts for 2011.” The company also invests in the welfare and upskilling of its own people, “we are very enthusiastic about apprenticeships and having apprentices working at Edison Power Gauteng is an important part of our business,” says Mr Govender. For those who have already completed an apprenticeship, the firm also ensures that they have access to up-to-date skills training and that those at management level attend short courses in their field. There are some projects that require workers to have specific training, such as banking, where those on site need to have some basic understanding of how the sector works in order to be able to deliver the highest quality and most efficient finished project. The new area for training and specialisation now is green technology – while it has been simmering away under the surface for a while, it is now really starting to push through. “Increasingly we are wiring up photovoltaic panels being installed on the
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ABSA’s choice of installing 4 x 2.9 MW natural gas powered generating sets in the new “Towers West” complex is the first of its kind in the financial sector in the R.S.A. The installation to be supplied, installed and maintained by Diesel Electric Services Pty Ltd, is expandible to 8 units operating in parallel, amounting to a future total output of 23 MW. The gas powered generator sets chosen by ABSA produce less than half the carbon dioxide per kWh than the coal fired power stations predominately providing our country with electricity. In addition, waste heat recovery from the gas generators will be used for heating and cooling of the new and adjacent complexes using specialised conversion processes, further enhancing the reduction of CO2. The gas power generation and heat recovery station is designed to operate in parallel with City Power to reduce the demand of the ABSA Towers Complex during peak periods, as well as provide stand by power during power outages, while allowing ABSA to contribute to the global policy of energy efficiency and reduced emissions. Diesel Electric Services Pty Ltd has supplied, installed and maintained power generation products for ABSA country wide over the last 16 years, with the energy centre being the biggest project by DES for ABSA to date. Other DES products include Rotary UPS, Static UPS, Diesel Generators, Bio-gas generators, MV and LV solutions, SABS/Netfa type tested LV Distribution boards, Hybrid power for Telecoms applications, service and rebuilds. The staff complement is over 400 in JHB, which includes 20 Contracts Engineers, 35 service personnel and 18 installation teams. Tel: 086 110 6633 Fax: (011) 493 0282 Email: dieselelec@icon.co.za Website: www.dieselelectricservices.co.za
Edison Power Gauteng FEATURE
roofs of buildings and taking into account other sustainability issues,” he says, “New equipment that is more environmentally friendly is slowly starting to emerge too, as well as safer, easier to handle more ‘human friendly’ tools and equipment that we have already invested in.” While increased efficiency end environmental requirements and developments are clearly things that are already on the table, what else does Mr Govender foresee for the company? “We will still be constantly striving to provide our clients with the best quality service, with on time, on budget delivery. We’ll also be looking to broaden our horizons with a view to selling our own power, as 42
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well as doing electrical installation.” While the need and desire for electricity is only likely to increase, the way that we produce and consume this commodity is changing. By familiarising itself with the green energy market as it stands and seeking to position itself as a provider of electricity, the company is already well on the way to cornering a new market. The method it uses to overcome volatile market forces enables it to pass on savings, both in terms of time and money, to its customers. It is this type of innovative approach that makes Edison Power Gauteng one of South Africa’s largest and most preeminent providers of electrical installation and a strategy that will help to keep it there in times to come. END
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S OU T H A FRI C A N S HI P P IN G F A C E S
MI X E D WAT E R S outh Africa’s coastal shipping trade pulled through the global downturn better than most and growth prospects are encouraging. But port congestion, the recent Transnet strike, and sluggish productivity threaten to trim its speed, as Ocean Africa Container Lines CEO Andrew Thomas tells Colin Chinery. 44
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Ocean Africa FEATURE
I
s this a tide of destiny? Andrew Thomas raised in Britain’s largest container port, Felixstowe, is today CEO of Durban-based Ocean Africa Container Lines, the premier regional container line in Southern Africa. But those North Sea winds are far behind him. “South Africa is now my home,” says Thomas. “A fantastic, wonderful place to live.” It’s a short walk from his office to the point where the first vessel in OACL’s distant lineage sailed out one hundred years ago bound for Port St. Johns, carrying paper, sugar and agricultural equipment. The same type of cargo is transported today along with much else in a fleet of modern,
purpose built container ships catering to regional, feeder and domestic cargoes.
Three streams for southern Africa Serving ports throughout the Southern Africa region, five OACL vessels ply westbound services between Durban and Luanda, and two on eastbound services calling at all major ports in Mozambique. Owned by Grinrod and Safmarine, OACL revolves around three work streams, the first a feeder operation where containers are moved on behalf of other shipping lines to ports to which their own vessels are not sent. www.southafricamag.com 45
Ocean Africa FEATURE
“We then offer an intra-Africa liner service, typically cargo originating in South Africa and destined for Angola for example. We provide the client with the container into which they put their goods, and we carry it to the port of destination. “The final type of cargo we cater for on board our ships is domestic, moving within South Africa. And here we are offering an alternative to road freight,” says Andrew Thomas. “We move about 600,000 tonnes of cargo a year and there we go beyond the port to port role of the shipping line. We have warehouses where we store for example sugar and we deliver pallets of sugar to the back doors of supermarkets.”
Total supply chain solution This is a total supply chain solution, with growers, manufacturers, wholesalers and retailers receiving a door-to-door domestic transport service. Around 600,000 tonnes of local product are carried annually between Durban, East London, Port Elizabeth, Cape Town and Walvis Bay, products that would otherwise move by road. Twelve months ago Andrew Thomas remarked that while the global shipping industry was grappling with shrinking trade volumes and excess new ships, the South African coastal market remained largely unchanged. What is the outlook today? “The global economic issues probably came to South Africa later and may be lagging slightly in terms of recovery. We’ve seen the Angola market shrink quite significantly over the last twelve months – witness the fact that there’s no port congestion at present, while up to a year ago it was significant. Now I don’t believe they’ve created additional capacity, so I think the volumes are down. “In terms of the domestic business in South Africa it remains as it was. People are consuming just as much sugar and paper. In our feeder business we are moving cargo from international origins into Mozambique, 46
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The Rickmers Group The Rickmers Group is a conglomerate with an international scope focusing mainly on the maritime sector. In its business division Shipowning & Ship Management the Group manages more than 100 vessels and approximately 3,200 seamen worldwide. The sizes of the container vessels are between 510 TEU and 13,100 TEU, those of the conbulkers between 35,000 tdw, or 1,600 TEU, tdw and 45,000 tdw, or 1,800 TEU, those of the bulkers 70,000 tdw and those of the multipurpose vessels 30,000 tdw. Since 2006 the Rickmers Group has counted OACL among its charter customers. Marked by a spirit of mutual trust, this working relationship has developed ship by ship. OACL currently employs four Rickmers container vessels of the 1,100 TEU class. The quality and efficiency of the technical and commercial management, low ship operating costs, good contacts with agents, suppliers and repair yards in the trade, the group-owned insurance and claims handling division, a compelling risk management system and, not least, well-trained and committed crew members are just a few of the factors through which Rickmers enjoys an excellent reputation with its charter customers and which also convince OACL. As the Rickmers Group, we wish to express our appreciation for the trust placed in us and look forward to continuing the shared success together with OACL.
Namibia and Angola, and here I think cargo volumes have been relatively robust. “Africa is continuing to consume Far East and European imports. Mineral exports recovered quite quickly and we are still producing tobacco in places like Malawi and exported to Europe and the East. “In terms of container movements and volumes in this region we’ve been relatively lucky. We continue to see investment not just in South African ports but also the regional ports. “Our economies are being driven by commodity exports, and as long as demand remains strong in China and India we will
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In 1834 R.C. Rickmers established a shipyard in Bremerhaven. Today, 176 years later, the Rickmers InIn 1834 1834 R.C. R.C. Rickmers Rickmers established established aa shipyard shipyard inin Bremerhaven. Bremerhaven. Today, Today, 176 176 years years later, later, the the Rickmers Rickmers In In 1834 1834 R.C. R.C. Rickmers Rickmers established established aa shipyard shipyard inin Bremerhaven. Bremerhaven. Today, Today, 176 176 years years later, later, the the Rickmers Rickmers Group, with Rickmers-Linie, Rickmers Reederei, Rickmers Immobilien and Atlantic unites liner shipGroup, Group, with with Rickmers-Linie, Rickmers-Linie, Rickmers Rickmers Reederei, Reederei, Rickmers Rickmers Immobilien Immobilien and and Atlantic Atlantic unites unites liner liner shipshipGroup, Group, with with Rickmers-Linie, Rickmers-Linie, Rickmers Rickmers Reederei, Reederei, Rickmers Immobilien Immobilien and and Atlantic Atlantic unites unites liner liner shipshipping, ship owning and management, real estateRickmers business and investment funds under one roof. ping, ping, ship ship owning owning and and management, management, real real estate estatebusiness business and and investment investment funds funds under under one one roof. roof. ping, ping, ship ship owning owning and and management, management, real real estate business business and and investment funds funds under under one one roof. roof. Maritime related service companies such asestate MCC Marine and EVTinvestment Elbe Vermรถgens Treuhand compleMaritime Maritime related related service service companies companies such such asas MCC MCC Marine Marine and and EVT EVT Elbe Elbe Vermรถgens Vermรถgens Treuhand Treuhand complecompleMaritime Maritime related service service companies companies such such asas MCC MCC Marine Marine and and EVT EVT Elbe Elbe Vermรถgens Vermรถgens Treuhand complement the related activities of Rickmers Group. Over 3,200 crew are employed onboard of Treuhand more thancomple100 ships. ment ment the the activities activities ofof Rickmers Rickmers Group. Group. Over Over 3,200 3,200 crew crew are are employed employed onboard onboard ofof more more than than 100 100 ships. ships. ment ment the the activities activities of Rickmers Rickmers Group. Group. Over Over 3,200 3,200 crew crew are are employed employed onboard onboard ofof more more than than 100 100 ships. ships. Over 450 people areofemployed in the offices ashore worldwide. Through a widely spread network of Over Over 450 450 people people are are employed employed inin the the offices offices ashore ashore worldwide. worldwide. Through Through aa widely widely spread spread network network ofof Over Over 450 450 people people are are employed employed in in the the offices ashore ashore worldwide. Through Through aa widely widely spread network network offices and agencies, Rickmers Group is offices represented atworldwide. more than 60 locations all spread over the world. ofof offices offices and and agencies, agencies, Rickmers Rickmers Group Group is is represented represented atat more more than than 6060 locations locations allall over over the the world. world. offices offices and and agencies, agencies, Rickmers Rickmers Group Group is is represented represented atat more more than than 6060 locations locations allall over over the the world. world.
Ocean Africa FEATURE
continue to create wealth which will translate into consumption and imports and containers. So we are reasonably optimistic that we are back on a growth track and will see an increase in container volumes as a result.” But as we talked Thomas, 39, and his team were having to deal with the vast backlog from the seventeen day Transnet strike that paralyzed large sections of South Africa’s freight logistics, and, according to Business Unity, cost the country R7 billion.
“So the focus now is on ensuring that the port workers are given the skills necessary to take advantage of the technology they have been provided with. “Skills development is a key issue in South Africa. When you have this level of investment in infrastructure without any kind of gain in productivity or efficiencies, then we’ve got to look at other areas where we are falling down. And skills development is clearly one.”
Strike blow for container sector
So for South African coastal shipping, cautious post-recessionary optimism is tempered by stark operational constraints. Ports are congested as a result of the strike, and with the World Cup followed by the peak season, could remain so to the end of this year. Thomas puts the annual voyage days lost as a result of congestion at between 20% and 25%. “I don’t think there are many trades in the world where one can consistently expect to see these levels of voyage days lost to berth congestion, but it’s part of doing business in this region.” But whatever the prevailing currents, Ocean Africa continues to command the South African coastal waters. “I think our major advantage is that we are based here; we are an African company and we trade in Africa. We are domiciled in South Africa, we are incorporated here and we pay our taxes here.”
“It had a major impact and we’ve got a significant backlog, particularly in the container sector. Some of the others, bulk mineral and coal exports etc, managed to keep moving, perhaps not at 100%, but in the container sector we were effectively shut down for 16-17 days. The deal that ended the strike gives the unions an 11% salary increase with a further one percent one-off payment on the total annual salary package. Thomas says the figures are excessive and the deal throws up a worrying feature. “There was no productivity guarantee involved in the negotiations, which I think is disappointing.” He sees this omission as part of a wider issue of low ROI in the economy. “We’ve made huge strides in the last eight years, with investment in the region of R70 billion in the last five years in terms of ports, pipelines and railway infrastructure, with a further R95 billion targeted to be spent in this area over the next five years. “But we haven’t yet seen productivity rates commensurate with that level of investment. Transnet has come out and said it wants a 20% productivity gain over the next three years, and are running an internal project called Quantum Leap which is focused entirely on this issue. Obviously we support this. 48
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Port congestion major issue
Ocean Africa – ready for business “By being on the ground our decisions are taken locally, we charter our own vessels and buy and lease our containers from here. All this, together with our background and knowledge, means we are fit for purpose “We are very focused on the markets we serve, have a very established network, and are recognised I think as being just about the best operator in the region. At Ocean Africa we are ready and open to do business.”END
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SOUTH AFRICA’S
KEEP ON TRUCKING
Without trucks, South Africa stops. And as The Answer to all trailer requirements, leading designer and manufacturer Afrit of Pretoria is keeping the nation’s wheels rolling.
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AFRIT FEATURE
L
ook at the volume movement of the transport sector and you have a barometer of the South African economy. Or as Fleetwatch magazine’s Managing Editor Patrick O’Leary put it recently and more tersely, “Trucking grows or dies in line with a country’s growth or death. Which is it going to be?” Back on the growth route is the response from AFRIT, one of the most respected and innovative trailer manufacturers, and South Africa’s biggest.
“Before the recession we were producing sixteen to eighteen units a day,” says Sales and Marketing Manager Leon van de Wetering. “Then from August 2008 through to October 2009, it was down to between six and ten units a day. Currently it’s back up to thirteen to fourteen units after six months of constant growth.”
Excellence and outstanding support Afrit is powered on the twin axles of product excellence and outstanding customer support. Its aim… to be The Answer to all trailer requirements. www.southafricamag.com 51
LEADING STEELMAKER SSAB was first to develop the new steels for a more sensible everyday life. Today, we are the leading producer of high strength steels. SSAB high strength steels are produced in Sweden and the USA, but sold throughout the world.
QUENCHED STEELS SSAB has a leading position in the market for the most advanced quenched and tempered steels. Docol cold rolled products are often in demand for passenger cars. Customers frequently choose to combine Hardox, Weldox, Domex and Docol steels in heavy vehicles, trucks, trailers, truck bodies, containers and cranes, in order to optimize theirproducts. This results in dramatically improved payload capacity, increases the useful life of the application and reduces maintenance costs.
STRONGER – LIGHTER – MORE ECONOMICAL Trucks built of high strength steels can be made lighter,consume less energy and carry a higher payload, which reduces the number of trips for a given quantity of material. Reduced fuel consumption consequently leads to lower emissions of carbon dioxide and reduced impact on the climate. This is not a simple equation, but SSAB has the solution. And this benefits the environment. SSAB specializes in the production of high strength steels. We choose from among 500 different
“recipes”when producing the steel for your car, home, leisure products, interior fittings, large buildings, bridges, public transport equipment, machines, industrial plants or medical equipment.
“Reduced welding, less waste and faster production” To understand the impact that Afrit will have on the local transport industry, it’s necessary to understand the trailer market and how the material and design of a trailer impact payload capabilities. Each trailer, be it a tanker, tipper or interlink, is designed for a specific payload. How the trailer is designed, what materials are used and how big it is depend on what is being carried. Is the load abrasive, heavy or reasonably light? How will it be loaded and unloaded? Consumables tend to be transported by interlink trailers; fuel, chemicals, liquids and bulk powders in tankers; and construction materials, minerals and raw materials in tippers. In fact, generally speaking, tippers tend to carry the heaviest, most abrasive loads, which are roughly loaded and offloaded as well. This combination of weight and material properties means that tippers need to be strong enough to handle their loads, while still light enough to ensure maximum payload. In truck bodies and containers, Domex and Hardox ensures a longer lifetime and highly predictable performance. Its high strength and hardness often allows for a thinner plate, enabling a higher payload and better fuel economy. In short, with Hardox and Domex you’re ready to bring it on day after day, year after year.
SSAB is a global leader
high strength steel.
in value-added,
SSAB offers products developed in close cooperation with its customers to reach a stronger, lighter and more sustainable world.
The SSAB product brand portfolio
includes numerous world leading and well established brands as well as some rising brands. The SSAB product brand names are HARDox, DomEx, WElDox, DoCol, ARmox, PRElAq and Toolox.
Learn more at www.ssab.com
AFRIT FEATURE
Its design and manufacturing processes are continually addressing the balance between strength, mass and durability, while a fully equipped on-call mobile maintenance and after sales service teams provide 24/12 support at any point on the vast South African road map. When hauling an Afrit trailer, downtime becomes drive time, ensuring business is where it should be - on the road. Afrit’s philosophy since inception in 1968 is unchanging: to deliver the lightest possible trailers with uncompromised quality and the highest legal payload for its clients to earn maximum income. “You’ll never be in doubt which trailer will stand the test of time,” says Leon van de Wetering.
For 21% of the country’s businesses to spend more than 10% of the cost of their goods on transport indicates quite clearly the plight we are in Logistical costs slashed ‘Without Trucks, South Africa Stops’ runs the slogan of the Road Freight Association. And currently, 80% of the nation’s companies move more than 90% of their goods by road. But as Barloworld Logistics supply chain foresight 2010 survey observes, perhaps the most pressing need is to significantly reduce supply chain and logistics costs. “For 21% of the country’s businesses to spend more than 10% of the cost of their goods on transport indicates quite clearly the plight we are in,” said the survey. Afrit’s objective of designing and producing the highest quality product at an affordable price meets this challenge. 54
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Brake Pads - Brake Discs - Brake Fluid
All Ferodo products are made to the same exacting standards, delivering consistent stopping power and unbeatable durability.
AFRIT FEATURE
Even so it is a given among the more astute truck operators, that support and back-up takes precedence over price when it comes to the purchase of a new vehicle. “You have to have the capability to design and produce any type of quality product to suit the customer’s specific needs supported by great after sales service,” says Leon van de Wetering.
Sales support critical “Speak to any transport operator in South Africa and he will always stress after sales support is one of the most important factors to consider and evaluate before making a buying decision.” Customer surveys indicate that all these points are characteristics they associate with Afrit. And while Afrit has a large facility for aftersales, accident repairs, modifications and standard warranty work, it also has a network of Afrit-assessed specialists’ throughout South Africa.
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You are never far from Afrit No matter where the road may take you, from Cape Town in the South to Limpopo province in the north, Afrit will always be close at hand. “If I was phoned from anywhere in the country by a client who needed roadside assistance I will be able to attend to his problem very quickly through our network of operators.” says Leon with assurance. “The market in Africa and South Africa in particular, is very big but it is also very diverse. In Europe for example, the market accepts one specific type of product based on a standard design. In South Africa our standard designs and products are in high demand yet most of our clients require a customised design and product tailored according to their requirements and operating environment. “So with every customer it’s important to evaluate their requirements in order to offer the best design solution until they are
completely satisfied. I believe our innovative approach together with the wide range of products and thousands of designs in our computer data bank has helped us overcome the recession during the last couple of years.” Much of Afrit’s success is based on this leading edge design and high trailer performance, and no challenge is too great for their design team. The transport industry is fast paced and very demanding – 60 % of work is currently with side tipping trailers for transport to and from mines - with customer’s continually monitoring payload capacity and return on investment.
whilst ensuring the manufacturing process is efficient and quality uncompromised.” Often the route is new specification requirements requested from our marketing department who in turn gained insight from the product information division according to customer feedback, says van de Wetering This is a big family firm with extended family values. Each participating member is a shareholder in the business, holding a specialty position, and in Leon’s words, “working 24/7 round the clock.” Besides Leon there are six van de Weterings’ at the helm of Afrit, Andre Managing Director; Johan - Director; Albert After Sales Manager; Gerben - Weld Assembly Manager; Gerrit - Technical Manager, and Hans - Purchasing and Logistics Manager.
If I was phoned from anywhere in the country… I will be able to attend to his problem very quickly
Uncompromising quality “Our design division, in synergy with various other divisions, is constantly tasked with making trailers more efficient and lighter on the road,
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AFRIT FEATURE
“We are very proud of our heritage, the Afrit brand and the quality product we offer our clients. For this reason we have an open policy and participate in daily discussions with the focus on improving our product and service offering,’ says Leon. “I believe this is one of the key contributing factors why we are one step ahead of our competitors.” Famed as the country’s biggest and most respected trailer manufacturer, with 25%30% market share, Afrit also has a strong position in other industries. “Our dedicated manufacturing, components and assembly plants, offered us the opportunity to diversify and target markets such as Agricultural equipment and the manufacturing and supply of steel components.
To be the best Absolute focus also describes Afrit’s attitude to leadership and staff relations. The line
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between top management and employees is in cohesion. As Leon says “Communication is vital; to be able to talk to one another about a project, or even their family life. The most important factor is to be able to deliver positive criticism but also to receive it. “ And at Afrit leadership comes by example… at the frontline. “Your employees’ take notice if you are working more hours than they do, that you are willing to go the extra mile, take on a challenge and get your hands dirty.” At Afrit the philosophy is that respect is earned by your actions and not forced down by your title. Leon van de Wetering concludes, “We are extremely honoured to be part of such a strong heritage and successful company. Our main focus is to make sure the 700-plus people working for us are proud employees and that we are all going forward with the same mindset: To be the best at what we do.” END
67737 Robor TWP ad V2 ctp 7/13/10 11:51 AM Page 1 C
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MEDICAL CARE
FRONT RUNNER ARWYP SHOWS THE WAY
South Africa’s private medical sector is booming, with Johannesburg’s innovative Arwyp Medical Centre a continental leader providing world class care in 5 star accommodation. Meantime the state sector struggles with demand far out-stretching resources. Arwyp’s managing director Otto Wypkema believes the private sector has a prescription for deepening problems.
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outh Africa’s health system consists of a large, cash-strapped public sector and a smaller but fast-growing private sector. And the number of private hospitals and clinics continues to grow. Four years ago there were 161 private hospitals, with 142 of these in urban areas. Now there are 200. Among those at the forefront, Johannesburg’s Arwyp Medical Centre, founded 24 years ago by two healthcare visionaries, Peter Arendsen and Dr W Wypkema, and with the guiding principle of great service and healthcare delivered at an affordable price. Today nine hundred staff are committed to achieving perfection in Total Healthcare, and through research and development, Arwyp – the largest independently owned private hospital in South Africa - has grown into a vast but agile organisation. It is major surgeryfocussed supported by the most modern equipment, some of it unique in Africa.
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First in Africa It was the first hospital on the African continent to be ISO certificated and achieve recertification, and has a 5 star grading on the Discovery Health hospital rating index. Arwyp made South African private hospital medical history with the birth in June 2006, and successful separation in September 2007, of Craniopagus Type A Siamese twins, Danielle and Danika Lowton. This is a strongly customer-focused medical centre, and ‘repeat business’ is not on the operating list. Its managing director, Otto Wypkema - son of the co-founder - wanted Arwyp to reach beyond the narrow, conventional definition of a hospital and establish itself as a place of health and recovery in surroundings comparable with a five star hotel. Among its facilities: Fifty different departments covering a broad spectrum of disciplines. Three hundred and forty three beds
Arwyp Medical Centre FEATURE
including 33 intensive care unit beds and 10 neonatal ICU beds. Eleven theatres, two of which are dedicated to open-heart surgery. Twenty four-four hour fully-manned trauma unit and casualty department, with designated outpatient department to avoid long queues. Full-sized hydrotherapy pool for the treatment and rehabilitation of patients. The only 24-hour pharmacy on the East Rand and surrounding areas. Ceiling-mounted television and upgraded entertainment and nurse-call systems at each bed.
Arwyp’s state of the art clinical and surgical equipment is proverbial. Among the latest acquisitions: A brand new heart-lung machine, a Sorin C5, which enhances the overall application of open heart surgery for various cardiac-related problems. Its procurement is the first in Africa. The O-arm Imaging System, providing surgeons with real-time, 3-Dimensional images, as well as multi-plane, 2-Dimensional and fluoroscopic imaging. By using these images, neurosurgeons and orthopedic surgeons can view the patient anatomy in the operative position, monitor the status of the surgery, and verify the surgical changes with a 3D volumetric image prior to the patient leaving the surgical suite. As a result, patients undergoing spinal procedures may experience less invasive surgeries, faster recovery times, and improved outcomes. A new Carl Zeiss opmi pentero microscope – the most advanced microscope used in all types of neurosurgery, and one of only eight in South Africa.
The patient is the focus “We are for patients. That is our focus,” says Chantell Rudolph, Arwyp Executive Marketing Manager. “No matter what we do, it’s going
to affect the patient in the long run and so the whole focus is about them. And this is reflected in the type of doctors we bring in, the type of nursing staff, the rates we charge, the wards, the surrounding services. “We realise the biggest drivers are the doctors and we have a really great specialist staff, and - this is a huge thing – we are contracted into the medical aid. So not only do we have great specialists, we also charge reasonable rates, which - and especially in the current economic climate - is very important. “Otto Wypkema is very much a visionary, always thinking ahead of the game. He always wants to bring in the greatest technology and the systems and processes in place that will make life easier not only for the patient but for the staff. “There is a huge staff well-being emphasis. We look after our staff and have a retention programme because we believe that if we have a happy staff we will have happy patients.”
Independence allows fast decision-making Arwyp’s status as an independent hospital is seen as another positive differentiation. “We are not part of a huge group of hospitals run by a head office,” says Chantell Rudolph. “We are managed and run here, all on the same location. So we are able to make decisions quickly, whether buying new equipment, taking a decision to expand a ward, or whatever. “We can make rapid decisions because of our independence. Also we are a family and are able to give this family feel across to all our clients, whereas you can get rather lost in the corporate sector.” Becoming lost is not a locational issue either; situated right next to the International Airport and Johannesburg’s major highway network, Arwyp is highly accessible. The same regrettably, cannot be said of South Africa’s public medical care sector, under-resourced and over-used. In contrast, the mushrooming private sector catering to www.southafricamag.com 61
Arwyp Medical Centre FEATURE
middle- and high-income earners who tend to be members of medical schemes - 18% of the population. The private sector also attracts most of the country’s health professionals.
Public health sector under pressure Although the state contributes about 40% of all expenditure on health, the public health sector is under pressure to deliver services to about 80% of the population. Despite this, most resources are concentrated in the private sector which sees to the health needs of the remaining 20% of the population. Most health professionals, except nurses, work in private hospitals. With the public sector’s shift in emphasis from acute to primary health care in recent years, private hospitals have begun to take over many tertiary and specialist health services “In this type of market it’s been very difficult because the Provisional Government sector hasn’t been able to deliver owing to the restraints of resources and funding,” says Chantell Rudolph. “And this is why the private sector has had to take a huge part of the market to look after the people of South Africa.
Quality health care for all “The private medical sector is huge in South Africa, but it depends on who you are dealing with. The majority of South Africans that have a job and can sustain a good living have medical aid. But the unemployed - a huge sector of our country - do not have the means to take up private health care and are forced to use the Provincial sector. And free health care in this country isn’t great.” Everybody involved in the current healthcare debate in South Africa agrees on the ideal; quality healthcare accessible to all income groups. The challenges are vast, but drastically stepping up the training of nurses and doctors is seen as an essential prerequisite to a new healthcare dispensation. As a South African Nursing Council 62
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accredited nursing training institute, Arwyp is providing trained staff at a time of acute shortages, and Otto Wypkema wants this avenue used extensively and with minimum delay. In his role as CEO of the National Hospital Network which represents more than ninety independent hospitals, Wypkema says the shortage of healthcare professionals can impact negatively on prices and costs.
High nursing costs a national issue And as South Africa moves towards the introduction of a national health insurance scheme, he cautions: “The biggest cost driver in healthcare today is nursing staff costs, but we are doing little to address this. “Private hospitals cannot train more nurses themselves because they are constrained by government regulation from doing so. “We are still training the same amount of doctors that we were 20 years ago. Fewer doctors are being turned out by the medical schools, and many are leaving for other countries. If you take our ageing population into account it can be seen clearly that we will have an even bigger problem as time goes by.
Private sector solution “The solution is to enable the private sector to train as many nurses as they require. Many of our members want to open nursing training schools because of the major shortage of nurses but they can’t get the necessary licensing from the national health department and/or other bodies because of the considerable amount of red tape involved.” Wypkema believes that a national health insurance scheme will be a phenomenal development for South Africa. “However at some stage we need to start implementing elements of the detail as well as practical solutions in order to make a real difference.” END
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CONSUMERS TAKE TO THE RHODES
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Rhodes Foods FEATURE
It’s one of the most famous names in South African history and a food brand associated with superior quality and value. “We are a young, dynamic company taking a number of market areas by storm,” says Gerhard Kotze, Managing Director Rhodes Foods
T
ake a Pepper Steak Pie with a dash of Melon and Ginger Jam and you have a slice of South African late pioneering history and a taste of contemporary quality food. The pie and the jam are from the range of Rhodes Food, a name part synonimous with the famous leader of the emerging nation, and today some of the finest foods available to the consumer. A diversified food business, the Rhodes Food Group specialises in ready and prepared meals for the up market retail sector. Long-life products are another speciality, with a diverse range of canned fruits, vegetables and jams.
Rhodes a big player “We are a big player in the South African market,” says Gerhard Kotze, Managing Director Rhodes Foods. “We strive to be the Number One or Two in the categories in which we are competing, and would like to be the preferred supplier of these products.” Based in the fertile Franschhoek valley in the Western Cape, Rhodes Food Group has a rich heritage dating back to the late 1800. At the time most farms in the area were under vines, but all was to change towards the end of the century. A phylloxera epidemic swept through, destroying thousands of hectares of rootstock (meantime the aphid-like insect was
devastating European vineyards, notably those in France). Enter Cecil John Rhodes, English-born businessman, mining magnate, imperialist and South African politician In 1897 - a year after his resignation as Cape Prime Minister following the Jameson Raid debacle - Rhodes began buying up the now destitute farms in the Stellenbosch, Wellington and Groot Drakenstein areas. And together with his partners, Alfred Beit and De Beers, Rhodes introduced modern farming methods and planted some 200 000 deciduous trees in newly formed orchards. Then in 1902 as Rhodes was dying, a new company, Rhodes Fruit Farms Ltd, was born, and for the next century enjoyed great success.
Quality products; outstanding service. Eleven years ago a privately-owned food group bought the company from Anglo American Farms and the Rhodes Food Group (Pty) Ltd in its current form was established. Today, Rhodes Food Group is a diversified foods business that prides itself on delivering quality products and outstanding service. While its head office is still in the Franschhoek Valley, the Group has highly successful operations in the Western
We know our product qualities are the best or at least equal best
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Rhodes Foods FEATURE
Cape, Gauteng, Limpopo and the Kingdom of Swaziland. “In years gone by Rhodes was competing mainly on price and the Rhodes brand was not particularly well marketed. But in recent years this has changed significantly,” says Gerhard Kotze. “We know our product qualities are the best or at least equal best in the market and so we decided to give our brand a more up-market image and also make significant changes to the packaging. There was a big media campaign and the overall feed back is very positive. I’m very optimistic about the future of the Rhodes brand. Rhodes Food Group’s business is divided
broadly into two divisions; Rhodes Foods and Fresh Foods. The Rhodes Foods product range consists of canned deciduous fruit, citrus and pineapples, canned vegetables, tomato products, jam and juice concentrates and purées. Fresh Foods’ products include prepared meals, fresh pasta, pasta sauces, quiches, pies and a range of dairy products. The Rhodes Group also has a vertically integrated dairy operation producing a range of dairy products including specialty cheeses under the Portobello brand. Other brand names in the Group are Rhodes, Hazeldene, Fruit to go, and Magpie, as well as leading local and international private labels. 40% of the group’s
You will get the best in a Rhodes product
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manufactured to fit
Suppliers of New and Reconditioned 210 litre drums to the Fruit Juice, Canning, Wine and Petrochemical industries. Proud Suppliers of Steel Drums to
Rhodes Food Group
Physical Address Hilda Close Philippi Cape Town South Africa Telephone: +27 21 374 1161/2/3/4 Postal Address PO Box 14833 Kenwyn 7790 Cape Town South Africa Fax: +27 21 374 7012 E-mail
www.peninsuladrums.com sales are to export markets including Britain, mainland Europe, North America, Australia, and the Far East.
Target market Kotze says Rhodes sell both to cost sensitive consumers and the high end with more money to spend and willing to try new products. He places the Group’s natural market on an LSM of five to ten. The SAARF LSM (Living Standards Measure) has become the most widely used marketing research tool in Southern Africa. It divides the population into 10 LSM groups, 10
drums@iafrica.com chockym@iafrica.com
(highest) to 1 (lowest) and is a unique means of segmenting the South African market. It cuts across race and other outmoded techniques of categorisation, and instead groups people according to their living standards using criteria such as degree of urbanisation and ownership of cars and major appliances. Rhodes Food Group is constantly innovating. Last year it launched the Chakalaka range. Chakalaka is a rapidly growing segment in the South African market and Rhodes has identified this as an opportunity to keep abreast of trends.
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Rhodes Foods FEATURE
More recently it became the first to come to market in South Africa with a Tomato Paste in Plastic - a 120ml cup in clear plastic with an ‘easy peel’ lid for cooking convenience. The added advantage of the paste in plastic is the purpose that it serves when refrigerating – no more concerns of refrigerating a tin with left over paste when the convenient cup can be stored straight into the fridge for further use. Over the last few years, the Rhodes Group has bought and refurbished a vegetable factory in Limpopo, bought a pie factory operation - Magpie Foods - and more recently launched a Johannesburg based fresh foods facility.
Latest acquisition? Further organic growth and potential acquisitions are always a consideration, and only this month the Group announced that it will be acquiring the South African fruit canning operations of USA-based Fresh Del Monte Produce Corporation - pending approval from the Competition Commission of South Africa. The extensive Del Monte canning operation based in Tulbagh in the Western Cape is used for the canning of apricots, peaches, pears and fruit cocktail. The acquisition will compliment Rhodes’ existing operations and product range which also includes pineapple, citrus and a quality range of fruit in plastic pots and resealable jars from its Swaziland operations. Altogether it will make Rhodes a significant player in the international canned fruit arena. If the Competition Commission approves the deal, it will become effective from October 1st in time for the South African summer fruit season. As well as innovation, quality products and excellent customer and supply chain relationships, the Rhodes corporate culture embraces sound ethical standards and leadership by example.
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a fruitful
relationship
“We are a company striving to comply with very high ethical, safety, health and environmental standards,” says 47 year old Gerhard Kotze.
You will get the best All the managers from the CEO down are very hands-on and involved in operations. Management are readily accessible to employees and open, honest communication is a given. “We value our people for sure. And this extends to our customers. We want to give them a good service, with products and prices that they are excited about. We pride ourselves on having very good customer relationships in good times and difficult times. “We are a young, dynamic company taking a number of market areas by storm. We are supplying the public with value for money, very high quality products that people can try and trust. “And we will never compromise. So we say “You will get the best in a Rhodes product.” END
Carnival ALL THIS AND
ATMOSPHERE
Gambling, relaxing, shopping, conferencing; unsurprisingly, Carnival City Casino just east of Johannesburg is one of South Africa’s best known and popular all-in-one entertainment centres. Here’s why.
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Carnival City FEATURE
C
arnival City, the hotel and casino, and major South Africa entertainment spot, is just 20 minutes drive from Joburg city centre and within reach of all Gautengers. Take a short drive to the corner of Century and Elsburg Road in Brakpan and you have arrived at one of the country’s premier casino destinations. Carnival City is a massive 39 000 m2 of entertainment. Facilities includes the casino, two hotels totaling 150 rooms and family suites, a 5000-seater Big Top arena, and the 500-seater Mardi Gras theatre. Open daily 24 hours, the casino’s gaming space features 1,750 gaming machines and sixty table games. Away from the tables there is retailing, a gastronomical choice of restaurants, cinemas, an impressive conference centre for banqueting events of up to 1000 people, and capacity of over 5000 people for major sporting events.
World bid comes to Carnival City One spectacular takes place at the end of this month when South Africans, Enrico Schoeman and Andre de Kock are scheduled to ride a Kawasaki-powered Australian motorcycle and sidecar through a 100m “tunnel of fire” to win a place in the Guinness Book of World Records. July 28 and the Carnival City Casino have been set as the time and place to smash the record of 60.96m set by American stuntman Clint Ewing. Schoeman, a professional photographer and De Kock a motoring journalist, have been car and motorcycle stuntmen for years, once riding a sidecar through fire tunnels at the defunct Dunswart Hotrod circuit. But for their world record bid there was a problem of finding a venue with a large enough expanse of tarmac for a 100m ride. A search was started and it led to the Carnival City Casino, whose management immediately agreed. The 100m tunnel will consist of 10 metal frames enclosed in thick cardboard on the sides, with five cardboard interior partitions. www.southafricamag.com 71
Carnival City FEATURE
The entire structure will be doused with diesel and petrol and then set alight…after which the two record chasers will attempt to ride through it.
On fire “We always caught fire during the Dunswart rides so we know what that feels like,” said De Kock. “Naturally we’ll wear fire-retarding racing suits and underwear, gloves and boots.” The venture will be used to create awareness and income for cancer research. “Cancer sufferers face a fire tunnel of their own in chemo treatment – you need courage to go through it,” says Schoeman. “You know it will hurt and you may end up with some scars, but there is an end to the tunnel, and we hope our record ride will create awareness for that fact.”
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You are a special guest! Out of the tunnel of fire and back to the rather safer environment of the Casino where you are treated as very special guests and provided with all you need to have an exciting as well as relaxing time. Carnival City Casino and Entertainment World has 1,750 total slots with a wide range of games including the Hollywood slots. The denominations of games range from 5c R500. The casino has over 60 tables, with 30 tables for smokers, and here you can play American Roulette, Blackjack, Punto Banco, and poker with bets from R5-R500 depending.
Poker at Carnival City A selection of tables is available offering a few different variations of Poker to cater for a wide range of enthusiasts. Drinks are
You can’t afford to gamble with securitY services at a casino! Hospitality and Gaming is a specialised sector of the security industry and it is the strategic objective of Magnum Shield to provide a focussed service with the vision of being regarded as a leader in this field. Carnival City recently renewed their contract with Magnum Shield extending their partnership to nine years in all. Employing 220 security staff on a 24/7 basis, staff are hand picked for their interpersonal skills and receive specialist training to the highest level. Gaming and hospitality staff is vastly different from normal security and they need to be well versed in being ‘guest friendly’. Possessing the right aptitude and attitude cannot be over emphasized and form a prerequisite for recruitment in this industry. The Gaming Board requires that certain audits are conducted on a regular and on-going basis to determine adherence to their very stringent policies and procedures. Magnum Shield has consistently scored 96% on ‘Silent Audits’ (an audit conducted by mystery guests over a period of time stipulated by Carnival City management) and 100% on ‘Key Issues’ (a monthly audit carried out by in-house surveillance controllers which is a totally independent department). These audits form an integral part of the Service Level Agreement by which Magnum Shield manages the contract, making service levels very objective and not a subjective opinion. As part of the Bidvest Group, our clients can be absolutely assured of the company’s compliance to all statutory legislation and on their commitment to good corporate governance. The Magnum Shield management team for Carnival City, under the leadership of Gerrie du Plessis, is situated on site and have an extensive knowledge and understanding of the Gaming industry boasting a combined 45 years experience. Recently, several of our Security Officers were recognised in the Sun International magazine “One Sun” for outstanding work. Commendations ranged from finding and returning a lost wallet to a guest, assisting the Russian Ambassador and his entourage on an unscheduled visit to assisting a paramedic on site to deliver a baby. In order to find the most cost effective solution for our clients, it is essential that constant focus is placed on the balanced integration of manpower and technology and whilst we believe that part of the success of this contract can be attributed to the successful integration of this factor, Magnum Shield Security has never stopped believing in its philosophy of being “excellent at the basics’. We look forward to many more years of partnership with Carnival City and through our staff at the venue, make it our goal to ensure that visitors experience ‘a million thrills, one destination’
www.magnumshield.co.za Magnum Shield Security Services PO Box 1219 • Kelvin 2054 • South Africa • Tel: 0027115554949
Carnival City FEATURE
complimentary depending on the levels and pace of the games. The service is ultra professional and the dealers highly trained. When a Casino is part of the Sun International group you know they take Poker seriously, and among the South African poker elite Carnival City has developed a reputation as the premier Poker destination.
A place in the sun Sun City was developed by the hotel magnate Sol Kerzner as part of his Sun International group of properties. It was officially opened in December 1979 at a time when it was located in the Bantustan of Bophuthatswana. As Bophuthatswana had been declared an independent state by South Africa’s apartheid government (although unrecognized as such
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Table Bet Range
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Games range in minimum bets of R5 to R500 American Roulette minimum: R5 - R50 Black Jack minimum: R25 - R500 Poker tables minimum: R25 Punto Banco minimum: R200 Midi Punto Banco minimum: R50
by any other country), it was allowed under the South African law at the time to provide entertainment such as gambling and topless revue shows, which were banned in South Africa. Other locational factors were its proximity to the large urban centres of Pretoria and Johannesburg. Sun Internationals roots can be traced as far back as 1969 when South African Breweries and Kerzner joined forces to form the Southern Sun Hotel Company. Nine years ago Carnival City launched the Afrisun EastRand Community Trust. The trust acts as a shareholder in Carnival City and in turn makes use of its funds for various social objectives.
Lavish accommodation There are two lavish options available to visitors - Carnival Club Hotel or Road Lodge. The Carnival Club Hotel is luxury personified and a welcome treat for overseas travellers looking for a real taste of superior South African accommodation. The rooms are well designed, the setting serene and peaceful. There are 105 standard and luxury rooms, amenities and a stunning breakfast area serving a delicious buffet. There is also a very private swimming pool, lounge and a meeting room seating up to eighteen. And after a spot of gambling why not relax at the Carnival Beauty Clinic close by? Pure value and good service.
And the Carnival goes on
Events are us No matter how big or small your event or conference, Carnival City has the infrastructure to host it in the most successful way possible. From just a few important business associates to a five thousand person event, you have a choice depending on the nature of the occasion…the Rio Hospitality Suites, Big Top Arena, Supersport Showbar, Afrisun Boardroom and the Mardi Gras Theatre. Gambling, relaxing, dining, shopping, conferencing; this is the amazing world of Carnival City and Casino. Speaking in the 1980s, Sol Kerzner described his strategy. “You take a chance...Calculate the odds, research the international market properly, establish the Southern Africans’ taste, style, appetite and enjoyment, aim at giving them a good time at the best quality they can afford then go for it.” END
A real taste of superior South African accommodation
Carnival City hosts a selection of seductive eateries; Squires, Ocean Basket, Fego Cafe, a fully fitted-out food court, Carnival Bar to catch some great live acts and a few more tremendous surprises. There are there are masses of shows on offer weekly and great shops to keep you in the loop. Whatever you need, you will find it.
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Casting the N et W ide
Balobi Processors is a specialist producer of frozen hake, squid and sardines. Jane Bordenave talks to Mark Rowe to find out what has made this business so successful and how a changing market will affect its future.
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ocated in Port St Francis, Balobi Processors was established in 2000 by Anton Viljoen, and specialises in processing sardines, hake and, most importantly, squid. The company owns its own fleet of squid vessels and also buys up sea frozen squid that is brought into the harbour by other boats. As explained by Mark Rowe, General Manager of Balobi Processors, the company’s location in St Francis Bay, is probably its greatest strategic asset. “Virtually all the squid caught in South African waters is caught between Port Elizabeth and Tsitsikamma Nature Reserve on the Eastern Cape. We are located midway. Of the +-10,000 tonnes that are caught annually, we process and sell 20 per cent – and that is squid alone.” Additionally, the same area is on the migration route for Sardines as they make their way up the coast annually from January to July. Balobi Processors has the capacity to freeze up to 40 tonnes of sardine per
Balobi Processors FEATURE
day caught by its own purse seine vessel. Balobi’s fishing activities require a lot of labour, “in general terms the fishing and fish processing sectors are the ones that create the most jobs in the area, and in the high season with the passing sardines we can more than triple our workforce, going from 37 staff up to 100 or more.” The company’s main product is whole round sea frozen squid which after being boxed, is exported in container loads to the Mediterranean countries. However, Balobi also processes fresh long line hake, which is packed into polystyrene boxes, trucked at -10C to Oliver Tambo Airport Johannesburgh and sold to importers in Spain, Portugal and France. This was a very successful business model for many years, however the recent financial crisis has hit Balobi Processors’s business badly, “The recession as been tough,” says Mr Rowe, frankly, “Spain, our main market, simply has no money, nor do any of the other
European Mediterranean countries. It is a very difficult situation – the difference in the exchange rate has meant that we have to increase our prices in the Euro Zone constantly, but our customers have got to the stage where they cannot afford to pay the catching fee for the produce, let alone the processing fee.” This has a knock-on effect for the company’s supply chain; even now, if the company sends a hake or squid vessel out to sea, it risks doing so at a loss, “We need to pay our vessels a price that makes it worth their while to go out to sea and currently we are paying the absolute bear minimum – we just cannot pay less than we are currently. There is also a serious danger that if the Euro weakens further we will not be able to raise our price without running the risk of out pricing our product.” The firm has also seen a change in purchasing habits in that where quality was once king, it in now price that is the deciding factor in a purchase. For example, whereas extra-large www.southafricamag.com 77
Balobi Processors FEATURE
and large squid used to be the premium product, it is now the small and medium sizes that are the most desirable to their customers. “Really, we have to consider other markets for our hake and squid, as it is uncertain when these economies will pick up. Clearly, this isn’t something we can do over night and it requires hard work, but it would be strategically advantageous for us to do so.” But all is not lost. The firm’s sardine operation is still relatively untouched by the world wide economic troubles. About eighty percent of the sardine that is processed is sold outside of South Africa to fisheries based in the strong emerging markets in China and Taiwan. This is quite a different market to the Mediterranean squid and hake business.
As Mr Rowe explains, “we sell these sardines not as food but as bait used in long line tuna fishing in the Indian Ocean. The advantages of selling to the East are two fold; not only are the markets in this area more stable, but all trade is carried out in US Dollars, which is a stronger and more stable currency than the Euro at the moment.” What the company has found through difficult times in the past is that, if one of its three sectors shrinks another will come forward and pull the company through, “it is a real advantage to be trading in three areas and while the current situation is very challenging, our infrastructure and our staff are 100 per cent rock solid. We are confident that, while it may be something of a struggle at the moment,
Our infrastructure and our staff are 100 per cent rock solid
REFRIGERATION ENGINEERING INSTALLATION OF AMMONIA AND FREON SYSTEMS Blast Freezing Cold Storage ● Supermarkets ● Marine Refrigeration ● Citrus Degreening ● Pre-Cooling ● Plate Freezing ● Industrial Icemakers 850 to 23000kg ● ●
Tel: 041 451 3256 Fax: 041 451 4616 Email: keith@refeng.co.za PO Box 16000, Emerald Hill, PE 78
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Tallie Marine Boatyard We build them tough for the rough seas! before
once the European markets pick up again we will have a nice, profitable, growing business for many years to come.” The company is not allowing itself to come to a halt though. By having a very stable financial situation, with its earlier purchases mostly paid off, Balobi Processors has been able to invest R7m (£611,196) in a new, state of the art freezer vessel for squid, which will be deployed in September this year, “While the hake market has come close to drying up, there is still demand for squid, although it is less than before the recession,” says Mr Rowe, “the new boat is 19.8m long and will use the latest technology to enable us to get a detailed 3D view of the seabed, showing us every peak, every canyon and, of course, shoals of squid.” Economies wax and wane and in the commodities market there is always the chance that demand will decrease to the point that other avenues need to be pursued. But the combined experience of the top level staff at Balobi Processors, who have already seen off recessions in the 1980s and 90s, as well as their stable financial standing puts the company in a strong position to overcome current troubles, “we are confident for the future. By trying to grow our number of fishing permits in a strategic manner, we feel that the diversification and steady investment we are engaging in now will pay off in the long term.” Nothing lasts forever, not even a downturn of this magnitude, and by securing its business now the firm is ensuring an even more prosperous future. END
For all your boatbuilding requirements as well as maintenance, repairs and refurbishments that will add years to your vessel!
after
PO Box 84, Sandy Point Harbour St Helena Bay, 7390 SOUTH AFRICA Tel: +27 (0)22 736 1283 Fax: +27 (0)22 736 1383 Email: info@talliemarine.com
www.talliemarine.com
L ean ,
M ean
and
Green Machine Erica Wark speaks with Michael Pearton, Vice President of Manufacturing at General Motors South Africa.
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eneral Motors South Africa (GM South Africa) will be opening the doors on their new Parts Distribution Centre (PDC) in October this year. The core aim of this R250 million investment is to improve logistical efficiency as well as the distribution of parts and accessories to their network of dealers throughout South Africa, the SADC region, as well as export customers across Africa and overseas.
LEAN In order to prepare the company for operations from their new PDC, GM South Africa has developed a new “Lean” Formula for success, which sees operations streamlined and their staff unified in vision and business practice. This “Lean” Formula for Success is as follows: 80
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Unwavering commitment + Painstaking effort + Flawless execution = World-Class Performance The Fundamentals of “Lean” are that employees, supervisors and managers work together to create continuous flow by: Engaging the work force Eliminating waste Reducing resources Reducing fluctuations Improving safety and ergonomics Striving for perfection (Zero Defect)
MEAN There’s no hiding the fact that, yes, the auto industry has taken a hit in South Africa, and GM South Africa has taken a pragmatic stance on handling this, with awareness that they need to follow the market and go where the money is.
General Motors FEATURE
Investing in the new PDC is a strategic move, as Sales of parts and accessories at GM South Africa account for over R1 Billion per annum, which is a big part of the business. The new PDC means that GM South Africa will now be able to house a stock of parts for every type of vehicle, all under one well-organised roof, and for ten years after the model runs out..… It’s really no wonder they need a 38000 square metre building! The PDC is being constructed in the Coega Industrial Development Zone, Port Elizabeth, which is one of the 4 industrial zones the government has set up to encourage direct foreign investment. For customers of GM South Africa the consolidation of operations has many benefits. Most notably it will mean a faster service, as there will be vastly improved logistical efficiency in supplying their 139 existing dealers in South Africa. Moreover, GM South Africa dealers will be more readily accessible for consumers; as the marketplace is showing signs of recovery, this new improved efficiency for existing operations will mean that GM South Africa now has the capacity to spread their network further. Thankfully 2010 has seen an upturn in business in the auto industry, and GM South Africa have been quick to respond to this. Furthermore, GM South Africa is looking at investing approximately R700 million between 2010 and 2012 on new product and upgrading production facilities and plans to launch 10 new products over the next two years.
post-production waste is closely monitored, from the boxes that materials arrive in to even the desks the employees sit at! In fact it appears that everything that passes in through their doors always leaves to go on to a ‘second life’. …And I mean literally anything at their company qualifies for the chance at a second life: from storage boxes and archive boxes being sent to clinics and schools; computer and car parts that are obsolete being offered to technical colleges in order to create working models; desks and office equipment going to an animal anti-cruelty group, these are just a few examples. This ethos has been a longstanding commitment at the company, and Michael Pearton explained how they have taken steps within manufacturing plants to make recycling a part of their operating process. In 1995 GMSA started segregating rubbish, as Pearton stated, “it’s a lot less likely to end up in landfill if it is segregated from the start.” It is so refreshing to hear this green logic being put in to practice, and the results are more than just a feel good factor on behalf of GM South Africa’s employees. Their actions touch people’s lives. For example; imagine how many parts come packaged in sponge? Imagine the tons a year of sponge alone that would head for landfill? Well at GM South Africa they are always striving to find creative ways to recycle post-production waste, and their sponge supplies are donated to the Golden Girls Club, a retiree group at the Bethelsdorp Old Age Home in Port Elizabeth, who use it to make cuddly toys for underprivileged children. Waste elimination is part of the company’s operating processes and much progress had been made to reduce the amount of waste destined for landfill sites. “With this
Thankfully 2010 has seen an upturn in business in the auto industry, and GM South Africa have been quick to respond to this
….And a GREEN MACHINE? The auto industry is not usually celebrated for its environmental awareness, and so you can imagine my surprise to hear about how deeply entrenched ‘Green’ values are at GM South Africa. At GM South Africa there has always been a policy to reduce, recycle and reuse. As such
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General Motors FEATURE
year’s World Environment Day theme of ‘Many species, one planet one future’ it is the opportune time to create awareness that unwanted waste could be useful to someone else,” stated Pearton. Mrs Daphne de Kock, chairperson of the Golden Girls Club, agreed with Pearton’s sentiment; “What others consider as waste, we consider as useful. We are truly grateful for this gesture and we can assure GMSA that the sponges will be put to good use,” De Kock said. Interlinked with this green practice is their ethical and social responsibility work. GM South Africa have been part of BEE since 1997, and are incredibly active in the community: Creating play areas for children in impoverished areas ‘Touch A Life’: Peer counseling service, including organisation of day outings for children Provision of Police cars and vehicles to transport equipment at the Flying Squad Education: GM South Africa are partners of a local University Retiree community: with over 2000 members they are involved with community work and give them the opportunity to keep active roles in the local area Housing: GM South Africa have created a model for low cost-high density housing development, they have already put in place two communities using this model and have plans to roll it out across the rest of the country Work eligibility for disabled young women: GM South Africa have partnered with a group who provide an 8 month long training and work placement programme to enable disabled youths, who may have hitherto been marginalized, to develop administration skills and therefore become eligible for work at the end of the course. More information on the new General Motors can be found at www.gm.com GM South Africa media-on line site, http://media.gm.com or by 82
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Schaeffler Schaeffler South Africa is a subsidiary of the Schaeffler Group. With its INA, LuK and FAG brands, the Group is one of the world’s leading rolling bearing manufacturers and a renowned supplier to the automotive industry. The Group is a recognised development partner with systems expertise for the complete powertrain. With around 1,100 patent applications annually the Group is one of Germany’s leading innovators.”
contacting Communications Officer, Gishma Abrahams, Gishma.Abrahams@gm.com
Company Statistics: In 2009 GM sold 43,624 vehicles (24,456 light commercial and 17,146 passenger vehicles). Their overall market share was 12.3% (22.2% light commercial and 7.6% passenger). They assemble Isuzu and Chevrolet Corsa vehicles in SA and import Chevrolet Captiva, Spark, Aveo, Cruze and Optra and Opel Vivaro, Astra, Corsa and Combo – this is from Europe, US, Oz and Korea. Their Struandale plant was already named the best local manufacturing plant for light commercial vehicles in the latest 2009 Synovate Quality Awards. According to GMSA sales and marketing vice-president Malcolm Gauld, the company is confident that the market will not further deteriorate this year. “We foresee a gradual improvement in sales and project that the 2010 market will come in at 412 000, about a 5% growth versus 2009’s 394 000,” said Gauld. GM currently has 1900 SA employees – 1028 of these staff work in assembly across 2 plants. Their Head Office and assembly operations are in Port Elizabeth (Kempston Road and Struandale), and they have regional offices in Durban and Cape Town. END
WOR LD CLASS M-TEC’S AFRICAN VISION
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M-TEC is a world-class leader in power cable and related manufacturing, powered by a model culture of excellence, innovation and sound values. And major infrastructure development, General Manager Sales and Marketing Hugo Diedericks tells Colin Chinery, is the absolute key to economic growth in South Africa and the rest of the continent.
M-TEC FEATURE
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ereeniging is a pivotal place in South Africa and its history. It stands at the rail and road crossing between two former nations, the Zuid-Afrikaansche Republic and the Republic of the Orange Free State, and the name means joining or uniting. It was here one hundred and eight years ago, that the peace treaty was signed ending the South African War, and today Vereeniging, population 400,000, is one of the most important industrial centres in South Africa. M-Tec is among its leading companies, world-class manufacturer and supplier of power cables, aluminium overhead conductor, bare copper wire and strip products. Current programmes include optic wiring in a project linking East Africa to the submarine cable, and copper wiring participation in a Mozambique – Angola power transmitter.
The one-stop shop M-Tec deals in six different types of cable across a spectrum including aluminium overhead conductor, wire, strip and profiles; copper wire, strip, contact wire and conductor; low-medium and high voltage power cables; optical fibre cables including OPGW; copper telecommunication and data cable.” We are a One-Stop Shop for wire and cable in Southern Africa,” says Hugo Diedericks, General Manager Sales and Marketing. Its origins go back almost a century. M-TEC manufactured South Africa’s first stranded copper wire as far back as 1924 and produced the country’s first aluminum rod in 1955. Today M-Tec’s major shareholder is world leader Taihan Electric Wire Co of Seoul, South Korea. Operational and quality standards are exacting. “We wouldn’t be where we are if this wasn’t the case,” says Diedericks. “We conform to the Taihan standards, which brings a new take on how quality management is done.” M-Tec’s continuing success comes in part from the emphasis on customer satisfaction regardless of a customer’s purchasing stance.
Another factor is a highly competitive and market-driven focus on total quality, a product range of world-class quality, modern production facilities, and a dedicated and total solutions driven workforce. “Quality is everybody’s responsibility and not somebody towards the end of the line. So an operator can stop a line at any point in time if the quality is compromising his section of the work, and this follows through to the predispatch controls. I’d like to think that when it comes to quality in South Africa we are setting a really high standard.” Innovation, creativity, commitment and passion are fundamental core values of M-Tec’s culture. Entrepreneurial flair too, and this says Hugo Diedericks extends to customer relations.
Serve the customer “Our object is to serve not the system but the customer. I believe people do business with people and because they trust one another. That trust is built upon a relationship and that relationship comes from our sales and marketing team partly because they are entrepreneurially driven. “They act in employment as they would if it was their own business. We have a phrase we often use: ‘What would you have done if this was your business?’ Then you know the right answer. You don’t hide behind bureaucracy.” Current innovation is centred on optical fibre, but Hugo Diedericks sees many areas in South Africa where innovation still needs to come. “If you look at the underground power cable for example, the market is still dominated by lead-insulated paper cable – a technology that has essentially died in the rest of the world. “And from an M-Tec perspective we’ve taken a stand to develop XLPE as an alternative, one which has a longer life cycle and with no water penetration. We’ve been spending quite a bit of money on R&D showing the market the benefits of newer technology and at a reduced cost. www.southafricamag.com 85
M-TEC FEATURE
I believe Southern Africa is going to see much bigger growth… more than even we imagine in South Africa
“We have a laboratory where we conduct tests on a continuous basis to find that little bit of next competitive advantage. But it’s not a quick solution like writing a programme.”
Excellence and loyalty culture Also embedded into the M-Tec culture are loyalty – staff members have been there for as long as thirty years – and the Can Do spirit. Another important contributor is flat management structure. “Our CEO, June Young, Hah, is very much a hands-on man and brings a big contribution to M-Tec’s culture. He doesn’t sit in an office all day, he’s got his blue cover-alls on walking the floor. He has that common touch and this helps a lot.” The excellence in all things ethic carries over into ethical behaviour in corporate governance. The company invests heavily in local community-based programmes focused chiefly on education, health, improved public services and aimed at reducing crime, community upliftment and social welfare. 86
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Closer to home, M-Tec runs a 24-hour healthcare clinic for its 450 employees.
Empowerment trend setting And M-Tec’s Black Empowerment programme is a trend-setter. “We have the top rating, and people we supply use us because the scorecard also reflects that you are purchasing from Black Empowerment companies. “All this brings more people into the economy and also allows more to become entrepreneurs because - having been given an opportunity - they have skill sets. I think we can say that we are a successful advertisement for Black Empowerment.” But M-Tec, like almost every South African industrialist, grapples with the national skills shortage. “It’s the anomaly of the labour market; a large percentage of unemployed and yet the supply cannot fulfil demand for trained staff. We take that challenge with in-house training, and I don’t think there’s any other way to do it. So, training, training and more training.”
M-TEC FEATURE
China’s growing dominance is very big says Diedericks, “bigger I think than people in England can imagine. The Chinese many years ago identified Africa as (a) a big supplier of raw materials and (b) customer of their finished goods. “As far as I know China is the only country in the world with representation in every single African country including governmental level. And the benefit they are having is landing raw materials whose cheapness boggles our mind. “We would like to see a bigger contribution of African products in African projects. We have to increase our capacity to meet that demand and compete with the Chinese. Since this is the reality of the landscape, perhaps we should have a discussion with Chinese manufacturers and at least find some common ground in terms of quality standards. We are a major player, we have a recognised brand and infrastructure, and we would like a slice of that pie.”
Our object is to serve not the system but the customer With full order books M-Tec’s challenge is to leverage success. ”We are not constrained by the fact that we are in South Africa and we can look at opportunities in southern, central, east and west Africa in collaboration with our Korean partners.”
Facing China’s dominance But Diedericks points to a modern and to many eyes disturbing African phenomenon – the market dominance of China. “The Chinese component is a very big part of infrastructure projects and they import absolutely everything from China. It’s very seldom they would even look to source products in South Africa, Go to any site and the wheelbarrow the guy is pushing was made in China – they won’t even buy the local wheelbarrows!” 88
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South Africa can compete with world’s best South Africa can compete with the best in the world when it comes to high technology products, “and we are well-geared to reap the benefits of the growth that will come to Africa. My view very simply is that growth doesn’t bring infrastructure; infrastructure brings growth. I believe Africa understands that, and I’m referring not only to the roads and railways, but a electricity power generation on which a lot will depend. “Take the whole of Southern Africa, Angola with its oil and diamonds, Zambia with its huge resources including copper, the natural beauty in terms of tourism, and yes I’m a very big Afro optimist. “I believe Southern Africa is going to see much bigger growth in the next 10-20 years, more than even we imagine in South Africa. And this company is ready to get its share of that business.” END
WORLD-CLASS PRODUCTS FOR THE POWER GENERATION INDUSTRY The Scaw Metals Group (Scaw) is an international group, manufacturing a diverse range of steel products. Its principal operations are located in South Africa, South America, Canada and Australia. Smaller operations are in Namibia, Zimbabwe and Zambia. Scaw’s quality products manufactured for the power generation industry include: Wire and Strand Products: • Prestressed wire and strand Haggie® Steel Wire Rope Products: • • • •
Staywire and earthwire for electrical purposes Steel strand core for aluminium conductors Guy strand Steel wire and strand for electrical reticulation to international standards • Galvanised staywire and utility strands to international standards. Chain Products: • Round link welded chain and chain fittings in grades 3 to grade 8 to national and international standards. Rolled Products Grinding Media Cast Products
Scaw supplies globally and also offers nationwide distribution in South Africa through its strategically located branches throughout the country.
Wire and Strand: Haggie® Steel Wire Rope:
Tel: +27 11 876-2600 • Fax: +27 11 876-2700
Chain Products:
Tel: +27 16 428-6000 • Fax: +27 16 428-1212/1089
Rolled Products:
Tel: +27 11 842-9359 • Fax: +27 11 842-9705
Grinding Media:
Tel: +27 11 842-9000 • Fax: +27 11 842-9705
Cast Products:
Tel: +27 11 620-0000 • Fax: +27 11 620-0009
Tel: +27 11 749-3600 (GET) • Tel: +27 11 842-9303 (Other) Fax:+27 11 421-8032 (GET) • Fax: +27 11 842-9710 (Other)
Website: www.scaw.co.za
Wire Sales Tel: +27 (0)16 980 2224 Fax: +27 (0)16 988 3421 sharonsales@capegate.co.za
Web: www.capegate.co.za
Steel Sales Tel: +27 (0)16 980 2561 Fax: +27 (0)16 980 2467 davsales@capegate.co.za
International Sales Tel: +27 (0)11 483 8500 Fax: +27 (0)11 339 3935 expsales@capegate.co.za
Cape Gate (Pty) Ltd. is a family company, which has always valued its self-reliance. Cape Gate has, through full vertical integration, grown from a small wire netting manufacturing company in 1962 to a major producer of wire and steel products with its own source of raw materials. The company has set new standards and found innovative hi-tech solutions for a broad spectrum of strategic industries, which demand dependability. All our products meet recognised international standards and we are proud to be recognized as a reliable supplier of high quality products. Serving…
•Mining •Agriculture •Industry •Commerce •Civil engineering and construction •Domestic and foreign markets
Cape Gate in proud association with Malesela Taihan Electric Cable www.southafricamag.com 89
Fruits David Farrell of South African fruit exporter Colors Fruit talks to Jane Bordenave about the importance of sustainable development to the company, its customers and the local community.
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ounded in 1997, Paarl-based Colors Fruit is the second largest fruit export firm in South Africa. The company brings 150,000 tonnes of fruit to the international market annually – 8% of the country’s total fruit export – creating an annual turnover of €150m (R1.5bn). The largest proportion of its produce is sold to the UK (26%) and continental Europe (33%), with the remaining 41% being spread out over the Republic of Ireland, North America, Middle East and Africa. Colors Fruit is very strongly vertically integrated, owning four farms across South Africa, which provide it with 15% of its supply of fruit. It also packs 50% of its produce for export in its own pack houses, as well as engaging in freight forwarding and logistics, “this structure is very important for our business,” says David Farrell, Group Director for Sustainable Development, “It means that we are in touch with our product at every stage, from production to delivery.” The company also has three foreign offices,
Colors Fruit FEATURE
in the UK, EU and Canada. The location of these offices is based on clients with whom the firm has a particular arrangement, “normally, while we market to and negotiate with the retailer, the actual transaction will be carried out through a third party importer,” explains Mr Farrell, “but in these countries and community there are certain retailers that we import for directly. In this situation, it is best for us and for the client to have a physical presence in their country. This way we can carry out quality controls ourselves when the goods arrive in the country, as well as being able to resolve any issues face-to-face.” Providing high quality produce is of great importance to Colors Fruit, “we sell to top-end retailers throughout the world and, of all the countries we sell into, the clients in the UK are the ones with the
most exacting standards,” says Mr Farrell. These standards are not just related to the quality of the end produce, but also to health and safety, ecological responsibility and sustainability, “UK clients will come out to South Africa in order to tour our facilities and see for themselves that we are working in a way that reflects their values.” Retailers can then use this information not just to reassure themselves, but also to inform their customers. An example of the way the firm’s clients are using this is a video on the Marks & Spenser’s Plan A website, featuring Mr Farrell himself. Unlike some other businesses, Mr Farrell’s role and department were not created in response to legislation or as a marketing tool. Having sold his own domestic fruit trading company to Colors in 2001, three years later he took up the
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Colors Fruit FEATURE
position as the Group Strategy Manager. In this role, he led a team that examined how the company could secure its commercial future, “the thing that really ignited the development of my current department was when we decided to measure the carbon emissions of our entire supply chain, an analysis that I headed up. Elsewhere in the strategy department, there was an investigation into ethical trading taking place, and our customers were putting on increased pressure regarding the impact of food miles,” he says, “we looked at this situation and decided that, rather than having these projects and future ones dispersed over many departments, it made sense to put everything together in one portfolio.” Mr Farrell describes the development of the Sustainable Development department as a natural evolution from the strategy wing. Within this department there are two different divisions, one taking responsibility for the environment and the Colors Academy, a corporate social responsibility initiative focussed on the social development, health, education and training of the communities that live on Colors Fruit’s farms, and those working in their other facilities. As a not for profit initiative, it also looks to attract donor funding into a broad-based sustainability projects that can be implemented across the supply chain, “the theme of these projects can include environmental stewardship training, social responsibility, and similar initiatives. This training can help stimulate our suppliers to make the change from themselves, rather than having to be pushed,” says Mr Farrell, “we recognise that ethical business is a journey, rather than a destination, and we don’t want to overburden these fruit growers and packers straight away – it takes time.” The Academy can also be used by retailers as an example of how their suppliers, i.e. Colors Fruit, are working in an ethical way and to reassure their own customers of that fact. 92
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An example of the work being done by the Academy is a flagship early years development programme, being piloted at a crèche on one of the company’s own farms, “in South Africa we have real problems with Foetal Alcohol Syndrome and childhood deprivation, especially in rural areas,” explains Mr Farrell, “so this project is designed to stimulate the child’s brain and development when they are still very young. It is sadly far more difficult to try and help these children once they are older and by the time they are teenagers, it is nearly impossible. We want to make sure that these children are able to reach their full potential by getting the ball rolling early on through this project.” From the environmental aspect, the company is involved in a biochar initiative, which takes waste from pruning, turns it into charcoal and uses it to enrich the soil, “this is an area with great potential; it enables us to lock carbon into the soil, making the carbon from biomass accessible to the trees and plants on the farm. It is a great improvement on the traditional
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method of simply placing the material on the ground as a mulch,” explains Mr Farrell, “At the end of the day, protecting and improving the soil on our farms is foundational to our business, and that is what we are doing here.” The future of the company is broadly based on the idea of sustainable development and sustainable business. As well as looking to increase the number of farms it owns and expand the number of offices it has abroad, Colors Fruit plans to become more visible to the end consumer as a brand, “we want to put a product on the shelf that represents leadership in all aspects of sustainability and show consumers what we are about.” While developing sustainable business is a continuous process, this company has established itself as a leader in the field. As such, its philosophy can only help to open doors to clients and to secure its future business strategy. This is sustainable food production – this is Colors Fruit. END
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Jewel
in the crown
Jane Bordenave talks to Alexandra del Mistro about the unique experience offered by The Diamond Works as a tourist destination, educational visit and seller of fine jewellery
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The Diamond Works FEATURE
W
hile sites such as Kruger National Park and Robben Island are at often at the top of tourists’ travel itinerary, there is another experience in cities around South Africa that offers visitors an insight into one of the country’s most important industries. Founded in Cape Town in 2001, The Diamond Works offers sightseers an opportunity to see both how South African Diamonds are made into jewellery and the history of the industry. The idea behind The Diamond Works is to enable tourists to come and have an educational and unique experience, rather than just looking at Diamonds,” says Alexandra del Mistro, the International Brand Manager for the company, “the Diamond business is an important part of South African history and the modern country.” The full experience includes a glass of sparkling wine – South African, naturally – followed by a full tour of the facility, where guests get to see the Diamonds being cut and polished, and the in-house jewellery designers and goldsmith turning these cut stones into jewellery. They are then introduced to the Wall of Fame, featuring some of the most famous Diamonds such as the Cullinan Diamond, the Hope Diamond and the Jubilee Diamond. The tour then moves onto a history of Gold and Diamond mining in South Africa, before finally finishing in the show room. “A lot of our visitors do buy some of our jewellery and stones at the end of their tour because they have been excited by what they have seen, we operate a no obligation policy,” explains Ms del Mistro, “we are not a conventional jeweller where the focus is on selling, what we offer is the experience of The Diamond Works.”
While Diamonds are a large part of the focus of the tour, the company also introduces its guests to Tanzanites, one of the world’s rarest precious stones, “Tanzanites are beautiful blue-violet stones that are only found in one mine at the foot of Mount Kilimanjaro,” says Ms del Mistro, “they are completely unique and have not been found anywhere else in the world.” As well as Diamonds and Tanzanites, the firm also buys white and yellow Gold and Platinum as raw materials for the production of its jewellery. The sourcing and traceability of these items, particularly the Diamonds, is of great importance to the business “all our Diamonds are guaranteed conflict free and this has always been an important part of out ethos,” she says, “we only work with long established, South African dealers that share the same values as us, ensuring we maintain this guarantee.” Other than sourcing the raw materials from dealers, the firm has what could be described as an in-house supply chain; whereas companies selling jewellery to consumers normally buy the finished item to display in their shop, The Diamond Works enables its customers to see first hand how theirs is made through an internalised production system, including a resident master goldsmith and a jewellery designer. It is this journey from raw material to finished product that is what The Diamond Works is all about. It is not only tourists who get to experience what the company has to offer. During the off season, local schools bring their pupils to visit the facility, “the whole process is just as fascinating to local people as it is to visitors, and for students there is another level of interest,” explains Ms del Mistro, “the school
We are not a conventional jeweller where the focus is on selling, what we offer is the experience of The Diamond Works
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The Diamond Works FEATURE
children we have visiting us are aged about 12 to 13 years old and are just starting to think about their futures. The Diamond and jewellery industry is huge in South Africa and is a major employer. So these children get to see all the different jobs that they could have that are involved with this business, from the transformation of rough diamonds, to the design and manufacture of the pieces right through to the sales team. There are so many opportunities linked to Diamonds and gems that people may not have even thought of.” The company has started to expand outside of South Africa, having set up a shop in neighbouring Namibia. There are challenges involved in establishing branches in different countries, as Ms del Mistro explains: “There are, of course, local laws to contend with and a fair amount of red tape to cut through, but that is just part of moving into another country.” The firm has kept its firm belief in the importance of reflecting the history of Diamonds and only employs Namibian workers at its Namibian site, “we did, of course, send over some of our employees to oversee the establishment of the facility and ensure the correct training of the local staff. But the fact is these are Namibian Diamonds on display in this branch and it is the history of the Namibian industry that is on show here. How can you have an experience that is truly representative of the Namibian industry if the whole of the staff is South African? Using the local work force is a natural part of our business.” Other than the formalities of setting up new offices, one of the regular challenges that faces the company is the whims of the fashion industry. “We constantly need to look ahead to what the trend is for the next fashion season, finding out what styles of jewellery people will be buying,” says Ms del Mistro, “so visiting trade shows and keeping on the fashion pulse is very important.” However, The Diamond Works 96
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aims to offer customers more than a one-season piece that will date quickly. By emphasising clean lines and timeless design, the jewellers produce items that are a long term investment, “this has been especially important during the downturn,” she explains, “because people have less disposable income so they want to buy something that really lasts, and that’s what we want to give them.” Looking to the future, plans for further expansion are definitely on the table, “by around 2015 we are planning to have another two stores at least outside of South Africa,” says Ms Delmistro, aiming to bring The Diamond Works experience to a wider audience. And it is that word – experience – that is key to the nature of the company, giving visitors the chance to see the full story behind a piece of jewellery. Tourists take note; The Diamond Works is an opportunity to see another part of South African history and culture and definitely not one that should be missed. END
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“Deep down I’m pretty superficial,” said ‘forties Hollywood siren Ava Gardner. Deep down in South Africa’s mines the superficial is as remote as daylight. The industry and environment demands the highest standards of operational equipment and technology, and as Marketing Executive Martin Lewis tells Colin Chinery, world leaders Trident SA of Germiston is providing it.
I
n the beginning it was easy. A pretty pebble picked up by hand on the banks of the Orange River and identified as a 21-carat diamond. But 143 years and the odd diamond rush later, South Africa leads the world in a less congenial form of mineral technology; deep-mining. It is a national economic powerhouse, and a major safety and operational challenge. Along tunnels as deep as 4 kilometres, mining locomotives made by Trident SA of Germiston haul ore up to the surface. Alongside work small diggers called rocker shovels, another Trident speciality. This is a subterranean world scarcely imaginable; the equivalent of twelve times the height of the Eiffel Tower or a little under five times the world’s tallest structure, the Burj Khalifa in Dubai. It’s long way from the days by the Orange River.
Trident FEATURE
Tough, safe, and world leader “We are probably the world’s largest manufacturer, and our machines have to be very tough and the safety aspect incredibly large,” says Trident’s Marketing Executive, Simon Lewis. A mining locomotive is essentially a train electrically or battery driven, and these underground operational conditions mean they are not readily accessible to Trident engineers. So they must be safe to operate, easy to repair, and replacements modular. The sizeto-power ratio too is very important; a small piece of equipment limited by its environment but at same time capable of pulling vast amounts of tonnage.
Challenges of the deep Among South Africa’s minerals, gold, diamonds, platinum, chromium, vanadium, manganese, uranium, iron ore and coal. Some 60% of South Africa’s gold production occurs below 2 kilometres compared to only 28% in 1990. As mining depth increases so too do the technical issues greater rock pressure brings further challenges to control the rock burst hazard, the travelling time to the workplace becomes longer, ventilation costs increase and hoisting capacity is at a premium. “The difference with South African mining - and specifically in gold and platinum - is the depth we have to go to pull out these minerals,” says Lewis. “While we are operating 4-5 kilometres underground, in Australia they are doing open-cast mining. We could do open-cast mining as well but there are environmental issues and it’s not a popular type of operation here, and certainly not for gold and platinum. “So the challenge for a company like Trident is to make the cost of ownership of equipment
that much lower, that much more efficient, and so maximise it for the customer.”
Complete mining system Trident SA, founded in 1969 by Roger Calvert, John Curnick and Richard Curnick, today employs over 280 people, servicing mining and engineering companies worldwide. Its product range includes electric mono rope winches – the workhorses of the mining industry compressed air driven loaders and muckers as well as electric and battery powered locomotives. Trident also provide parts and refurbishes used equipment. It is a complete mining system. In 1997 they entered what was to be a significant partnership with the prestigious US-based Goodman Equipment Company, manufacturer of the world’s most numerous mining locomotives. Six years later Goodman ceased operations, and Trident - aware of the need to support a considerable delivered base of equipment - acquired the global manufacturing and distribution rights for all new Goodman equipment. And before long Trident had produced an entirely new and much improved Goodman loco. This was the Millennium Locomotive, designed and built at its Wadeville, Johannesburg plant by engineers and craftsman who understand the demands of the underground environment and the need for quality and reliability.
Our machines have to be very tough and the safety aspect incredibly large
Quality and simplicity “We don’t over complicate, making sure our customers can operate our products. To a large degree we are operating in Africa and have to take into consideration local conditions and what can be done here. “Basically we will customise our locomotives to our customers’ requirements. www.southafricamag.com 99
Trident FEATURE
With a mining group that is technically advanced and proficient for instance, we can add all kinds of pieces to their locomotives which we know they can maintain. On the other hand if we sent a locomotive to somewhere like Zambia there will be no such technical ability to maintain that type of equipment, so we might move away from electronics and go back to simple electrics.” For Trident as for any South African manufacturer, the skills issue is a daily pre-occupation. As a result rigorous training courses have been established in-house to ensure its employees can complete their roles to the highest standard.
Trident training “I think the average age of a South African tradesman, a fitter, turner or electrician say, is somewhere in the 40s. We have issues like that, and what we do is to employ youngsters and have in-house training and upskilling. But we will also go outside. If we identify a skill we grab it quickly. “Years and years ago there were Government training centres all around the country to where young people would come out of school and become trained. What’s happening now is that a lot of them have been closed down which is ironic. And the young man coming out of school now doesn’t want a job where he’s in overalls and his hands in grease; he wants a cell phone and a lap top.” Trident has developed long term relationships with its customers, specialising in meeting the need of each one. It is a strong bond that extends to the supply chain, with a reciprocal loyalty that in many cases goes back forty years, driven on reputation rather than price. Simon Lewis says Trident’s particular culture stems from its family ethos, a belief in honourable conduct. “This is a country where there’s a good deal of corruption and all that goes with it. It’s also a very cut throat industry and we could operate along those lines as 100 www.southafricamag.com
well. So we try to differentiate by making sure our prices are good and our ethics impeccable.
Dependable and respected “We’ve got very much a family-oriented approach, and this is not just within the company itself. We are very close to our customers and treat them as family. When our MD Roger Calvert goes to a mine, the miners’ call him ‘Oom Roger’ - Uncle Roger. It’s a degree of familiarity; they know us and know we are always dependable.” Trident SA’s challenges says Lewis, are very similar to those of the mining industry. “We need to adapt as their industry changes. If the mining sectors skills issue continues we will need to gear up and move into that space. There are issues around diversification. Fuel shortages would definitely be an issue. “There are other challenges of course. Safety is one of the factors at the forefront, and whenever you add a safety feature, the cost of the equipment goes up. At the same time the Chinese are going into mines in areas like Zambia and taking over completely with little consideration for issues like safety. It’s a case of ‘jump in and mine’.” It is an African mining scenario as far removed from Trident as the day of that chance discovery by the Orange River. “We are there where our customers are and we will always support them,” says Simon Lewis. “We are very dependable and we’ve been around for a very long time. They know us; we know them, and we are in it for the duration.”END
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WINTER FRIEND Air conditioning is expensive and a fair weather friend. No says Richard Lurie, Director of leading Western Cape specialists Airvent. Modern air conditioning is highly energy efficient, keeping you cool in summer and warm in winter
A
ir conditioning: a cool in summer solo or a surprise double act – warm in winter too? Decidedly the latter, says Richard Lurie, director of leading Cape Town contractor Airvent “The sooner people realise that in winter their air conditioner is a heater, the better. Air conditioners are heat-pump systems and as such can provide heat in winter. “It’s a very very efficient heater compared with conventional forms such as oil, element 102 www.southafricamag.com
or asbestos heaters which in effect are outdated technologies. Air conditioners are a once-off purchase that does both. “Another misconception is that air conditioners are very heavy on electricity. But compared with other forms of heating they are far far more efficient.” New generation air conditions perform a seasonal turn-about, the heat pump reversing the transporting process with heat energy transferring into a room, rather than out.
Airvent FEATURE
or the condenser is providing air conditioning through the piping to the indoor unit. In fact it’s the gas in the system,” says Lurie. The other is inverted technology which is giving as much as a 35% saving in electrical consumption. “With the price hike and availability issues in South Africa we are finding this is more and more important.”
Market leader Airvent is a market leader in the design and supply of air conditioner and ventilation systems, with an outstanding growth record and reputation.
The sooner people realise that in winter their air conditioner is a heater, the better
Major efficiency gains And heat pumps continue to function even with temperatures down to -5°C, -10°C or -15°C, depending on the type of system used. Heat pumps are also up to five times more energy efficient than conventional heaters. Two developments have been changing air cooling and making it even more appealing to the consumer. The first is the introduction of a new blend of more environmentally-friendly gases. “Many people think that the outdoor unit
In the nine years since it was launched by Richard Lurie and business partner Mark Rogers, staffing has increased from three to more than 100, supplying, installing and upgrading applications from small houses to large commercial and industrial properties. Staffing numbers and quality are critical to Airvent’s customer focus. “This is quite a people intensive business; especially of you want to give good service,” says Lurie. ”If you are thin on the ground something’s going to drop along the line and you won’t be able to service your client the standard you like. “We are quite people-heavy relative to our competitors, but it enables us to deliver high service to our clients and it’s a model that’s worked for us. “From a customer service viewpoint it’s a very difficult industry to work in, with an enormous amount of variables hitting you on a daily basis. www.southafricamag.com 103
Airvent FEATURE
Focus on customer “You are dealing with builders and other construction trades, and this means a lot of co-ordination and facilitation needs to happen if a project is to run smoothly. “So we concentrate heavily on this and it’s been a big part of our success. We put in project managers that handle different projects, sales people that handle different territories - and that’s quite an unusual structure in this market.” For Airvent supply chain relationships have a comparable high spec focus. “Our supply chain and relationships are critical to our success. We deal predominantly with Samsung and with Daikin although we do have relationships with other manufacturers. And then you have suppliers of materials, copper parts, cabling and so on. We are very happy with our suppliers and our relationships. They go the extra mile for us and all this is a critical part of our model.”
Cowboys on the run The pre-recession construction boom saw a mushrooming of one man operators of zero skills and mega sized opportunism. “There were so many cowboys and fly by nights,” recalls Richard Lurie, “in fact it seemed anybody who had a bakkie. Suddenly there were thousands of competitors taking advantage of the property boom and all at once everybody was a builder or everybody was an air conditioning contractor. “But over the past 24 months many have fallen by the wayside. They hadn’t got the foundations and the correct model in place; they just wanted a quick buck.” In contrast Airvent is committed to delivering an exceptional service, with specialised divisions offering the best
advice, products, support, back up and ultimately peace of mind. Heavily involved in the property and development market, Airvent’s turnover has been performing strongly over the last year. “I think there was quite a strong sentiment in the market in the period running up to the World Cup, and this brought a very positive sentiment and mood to the country. “Looking forward in our market, there is quite a lot of concern because there is not a lot of new business coming into the system. But at the end of the day there is work out there and you have to be one of the guys that goes out there and wins it.”
It’s a misconception that air conditioners are very heavy on electricity
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World class service
Airvent is one of the winners, its success built on four cornerstones – industrial experience, technical expertise, sound financial management and excellence of service. By consistently focusing on these basics, Airvent has established itself as a provider of affordable, world class air conditioner products, backed by world class service. Unsurprisingly, clients keep coming back. “Our Vision is to be the leading air conditioning service provider in Cape Town and
the Western Cape, by ensuring that we remain the supplier of choice, the dealer of choice and the employer of choice,” says Lurie. And the Airvent choice brand of customer care is quick to impress. “Just wanted to congratulate you guys for running by far the most professional business that I’ve dealt with through my renovation process,” enthused one customer, Johan le Roux. “Good to know that some companies still take service seriously.”
What other attributes differentiate Airvent in the air conditioning and ventilation marketplace? “We are one of the larger contractors in the Western Cape and so our pricing is very competitive because of the bulk and volumes we do. “Secondly we are very focussed on delivering good customer service to our clients. We provide them with the most appropriate solution for what they are trying to achieve.
Customer expectations
“We have significant resources across the group, with more than thirty technical and installation crews on the road, and a 24 hour hotline with staff on standby. And we are a financially stable business. We’ve been around for almost ten years and we are not going to disappear off the radar screen if something goes wrong. “It’s been fantastic and a very exciting journey for me and Mark. We are an established Western Cape business that’s here to stay.” END
Richard Lurie shares the unflattering view of national levels of customer care. “Service standards are extremely low right across the board in South Africa, so customers have a low expectation level. “So frankly you don’t have to be a super star to impress them. I tell our guys, honour your word and your commitment and people will be impressed by that alone, because there are so many people out there who are simply not doing this.”
Here to stay
www.southafricamag.com 105
A real
for the Auto Industry
Ashok Thakur, CEO of Mahindra and Mahindra South Africa, speaks with Erica Wark about their entrance to the South African market.
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M
ahindra & Mahindra South Africa (M&M) is a fully fledged South African company, directly integrated with its global parent company in India. They are committed to the long term development of their brand in South Africa, and to expansion in to the rest of Africa. With Mahindra Satyam (a Mahindra Group Company) having recently sponsored the Fifa World Cup, South Africa is set to see more of M&M’s presence, with funds now being directed towards marketing for the vehicles that have been imported to the South African marketplace.
Mahindra FEATURE
M&M are offering four different platforms of vehicles: The ‘Scorpio Pik Up’ and SUVs. SUV’s come in both automatic and manual variants. Scorpio platform now are available with both ABS and airbags. The ‘Xylo’, which is a 7-8 seater people carrier, fantastic for big families, tourist companies or rest houses. These are also now being offered as a panel van delivery vehicle. ‘Bolero Pik Up’ – which is a popular pick-up ‘Thar’ – A retro looking 4X4 recreational vehicle These vehicles are popular for private use as well as in the business world. The pick-ups have been particularly popular in mining and agricultural farming industries. M&M have found there has already been a good customer retention rate, as those who have used their vehicles have been so satisfied that they repeat purchase when expanding their fleet. Customer retention is something which is very important to M&M; they intend to be here in South Africa for the long haul. Ashok Thakur, CEO of M&M, is very proud of the products they have to offer in South Africa: “Our products offer both high quality and value for money. The vehicles are rugged enough to handle any terrain or circumstance; having already been accepted for their off-road performance in arenas such as the mining and farming communities. Moreover, they perform as well as, or better than, Japanese products, yet pricewise we fall in between high end Japanese/European products, and the low end budget Chinese vehicles. We believe, therefore, that we are in a unique position in the South African marketplace.” The move to the South African market was a huge undertaking for M&M, as it was their first overseas subsidiary. After investigation began in 2000 it was decided that Africa had the best
market conditions, with a rapidly growing market. M & M saw this as an opportunity to perform in a large overseas market and made the move to South Africa in 2004. Since their move the economic climate has been tempestuous. However, M&M have seen a steady uptake of their vehicles. Finally, November/December 2009 saw a real ‘pick-up’ in business. There has been a particular boom for them around the World Cup, and the business continues to move from strength to strength, with June being their best month to date. After sales care and customer loyalty is paramount to M&M; their core values are to provide a value for money vehicle and excellent after-sales assistance. To this end they have www.southafricamag.com 107
Mahindra FEATURE
ensured they have a large inventory of parts across their dealer network in South Africa. 95% of parts are picked and despatched within the hour, which is a phenomenal statistic. All Mahindra dealers provide workshop facilities for their customers, enabling ‘peace of mind motoring’. Further peace of mind comes in the form of warranty on vehicles; the Scorpio Pik Up comes with 3 year/100,000 mile warranty, the Bolero Pik Up comes with 2 years/50,000 miles warranty. What’s more, Mahindra Financial Services offers competitive finance and insurance solutions for their clients. Thakur has also launched a Free Service Plan for Scorpio Pik Ups. This offer went live in June and has already received very positive reviews. This gives ‘peace of mind motoring’ to customers, but also, as this means no additional purchase of a service plan once provided by M&M the manufacturer, it enables M&M to further sharpen the price difference between their products and those of companies from the developed world.
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At present M&M only import pre-assembled vehicles. However, if this positive upturn in business continues, they will be looking to initiate plans to begin to manufacture here also, providing more opportunities for local employment. M&M have already localised accessories and components such as bull bars, steel hooks and glass; which are all locally sourced. With over forty dealerships countrywide their national network is expanding. Certainly the recently published NAAMSA adjustments bode well for their continued growth in South Africa, with NAAMSA having already had to revise their growth prediction for the market from the projected 6-7% to the actual 20% increase they have witnessed. As testament to M&M’s company mantras of ‘Outstanding performance – Continuous quality – Unwavering commitment’, here are mention of some accolades that Mahindra & Mahindra have already been awarded in the Indian domestic market: Travel Companion of the Year — Awarded to Scorpio by the India International Tourism Council, 2006. Three Car of the Year Awards for Scorpio, 2003: BBC World’s Wheels Business Standard Motoring CNBC-Autocar
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Most Successful Brand Launch — Business Standard Brand Derby, 2003 Launch of the Year — India Leadership Summit Excellence in Marketing and Brand Building — Indian Express Highest Ratings in Total Customer Satisfaction — NFO Automotive Study, 2003 SP Jain Marketing Impact Award, 2004 1st Indian Vehicle to do 29 states in 29 days - Limca Book of Records 1st Indian Vehicle to win National Award for R&D — Government of India 1st Indian Talking Car In an extremely competitive global environment, M&M has also emerged as the third largest tractor manufacturer in the world and have 22 years of market dominance under their belts on their home turf. This achievement was lauded by winning the coveted Deming
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Quality Award in 2003. They were the first tractor company in the world to do so. For more information and prices please visit www.mahindra.co.za END
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Platinum, Gold and‌
green? Keith Scott, MD of The MSA Group, talks to Erica Wark about how the mining business is taking a green turn. 110
MSA Group FEATURE
B
efore you turn that first shovel of dirt on your new mining project, in fact, before you place a pin in the map for your site, or even decide what you’re digging for; you should speak to The MSA Group. The MSA Group are specialist consultants to the mining industry, with nearly three decades of expertise in the field, and competency in almost every mineral commodity, they have a team of 80 consultants who you can call upon when you are considering entering the mining industry. The MSA Group’s Geological Services have been utilized in mineral exploration projects in over 30 countries worldwide, with extensive reporting experience on the major international mining stock exchanges. As an example of the breadth of experience, their Exploration Portfolio consists of: gold, PGE’s, base metals, coal, uranium, diamonds, iron ore, bauxite, manganese and REE’s.
How could working with The MSA Group consultants help you? South Africa has a wealth of mining opportunities, and The MSA Group can advise on the sourcing of any ore bodies throughout the country, or globally. Keith Scott explained the principle they work upon is to “provide their clients with information on the best economic and also most socially and environmentally responsible physical practice.” Therefore, by consulting with The MSA Group pre-mining, you will benefit from access to the strongest geological, environmental and mining knowledge you could wish for, and the peace of mind that they are dedicated to investigating and advising on the complete project; encompassing everything from targeting, to valuation and rehabilitation. While the economic advantages of mining are always closely studied, the rehabilitation element has not always been of top priority to some mining groups. This has undoubtedly
caused frustration for communities, but also for The MSA Group consultants. Scott explained that, historically, “we haven’t seen enough companies wanting to invest in the ‘complete development’ of their mining projects.” Certainly, the ideal client for The MSA Group is a company, whether small or large, whose intent is to develop their project in line with corporate social initiatives, and who abide by the international best practice. The MSA Group is committed to being a responsible company, which is one of the factors why it holds the Gold Standard for the industry, and is considered to be the employer of choice and the service provider of choice. The great news is that Scott is pleased to note they are witnessing a shift in the industry. With the recent passing of legislation such as the Equator Principle; a global policy which means that anyone wishing to finance mining will now be required to be accountable for the socioenvironmental rehabilitation of the area post-mining. We can now expect to see any new projects being better aligned with their responsible ethos. In 2009 The MSA Group was bought by Mining, Oil and Gas Services who are in turned owned by Royal Bafokeng Holdings , which has brought on board some financial savvy to this group of talented geologists, environmentalists and mining professionals. This has allowed the business to grow and enabled the procurement of a dedicated environmental consultancy. In the last two years The MSA Group has honed the new skillset into a full suite of services that will see your projects through from start to responsible finish. Both The MSA Group, and their new parent company Royal Bafokeng, have precise corporate social responsibility programmes, and a philosophy of working to bring real value to the areas that they advise on for mining projects. A key initiative www.southafricamag.com 111
MSA Group FEATURE
in their minds is to create infrastructure for the community any project touches. Many tangible examples of this can be seen in the Bafokeng communities; with the provision of Clinics, Schools, Parks, Roads and numerous infrastructure which ensures that South African communities are also feeling the positive effects of their mining projects. As Scott explained “The philosophy underpinning our environmental offering is based on finding optimal and innovative solutions to environmental challenges. We have a team of highly qualified environmental scientists who are committed to and passionate about service excellence and their own professional development.� So, in consulting with The MSA Group you can rest assured your project will be in the best hands. The MSA Group offers a comprehensive suite of services across all industry sectors, including Government.
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The Environmental Services they offer are as follows: Environmental Impact Assessments Exploration and Mining Rights Applications and Closure Pre-feasibility and Feasibility Studies Site Environmental Control Officers Legal Reviews and Registers GAP Analysis Environmental Auditing and Due Diligence Assessments Permitting and Licenses Environmental Risk Assessments Environmental Management Plans Sustainable Development Strategies Specialist Studies Surface Water, Ground Water and Waste Water Integrated Waste Management Plans Environmental Education and Awareness Programs
We proudly offer quality services in:
as We a so cia re p ted rou wi dly th MS A
• Impact Assessments • Biodiversity assessments, flora and fauna • Plant species identification • Evaluation of habitats for fauna, fauna species lists • Assessment of Red Data and Protected species for plants and fauna • Vegetation and ecosystem sensitivity maps • Assessment of Wetlands, riparian vegetation • Nature reserve, game and cattle farm veld management planning, veld condition and grazing capacity assessment, stocking rates for livestock and game • Monitoring of biodiversity, veld condition • Recovery of disturbed areas 88 Njala Rd Monument Park Pretoria 0181 • PO Box 25533 Monument Park 0105 Tel: +27 (0)12 460 2525 • Fax: +27 (0)12 460 2525 • Cell: 0825767046 Email: george@ecoagent.co.za
The MSA Group also offers the following: Exploration Services: Targeting Geological Mapping Remote Sensing Geophysics Geochemistry Programme Design and Project Management Turn-key Exploration Services Drilling Programmes GIS and Database Development and Management QAQC and Programme Auditing Evaluation Services: Geological and Structural Modeling Resource and Reserve Estimation Public Reporting Environmental Services, Rehabilitation and Closure
Mining Services Valuations Due Diligence and Scoping Studies (Mine Financial Modeling, Mining, Processing, Tailings, Water, Utilities, Infrastructure, Marketing, Human Resources)
Pre-feasibility and feasibility studies Mining business optimization Finally, as a tip-off for strong mining investments over the next couple of years, consider; Rare earth elements: used in manufacturing components for high end IT industry, Uranium, Platinum, Gold: which has been strong for a couple of years and due to stay strong… but please, don’t just take my word for it, speak to a consultant at The MSA Group to find out more about which could be a big earner for your future. To speak with a consultant at The MSA Group, or for more information on their corporate social responsibility programmes, please go to www.msagroupservices.com / www.bafokengholdings.com END www.southafricamag.com 113
gold THE
STANDARD
Rand Refinery has been at the heart of South Africa’s gold industry for nearly a century. It is updating its processes and structures to ensure it stays at the forefront of the global market into the future. Ruari McCallion spoke to CEO Howard Craig.
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Rand Refinery FEATURE
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old is known as a ‘safe haven’ in times of economic uncertainty, so it is no surprise to see its price reaching record cash highs in the current climate. But Howard Craig, CEO of Rand Refinery, has no hesitation in putting the numbers into historical context. “The current price is not a record high in real terms,” he said. The price in early July was around $1200; the price in 1981, $599, is equivalent to $1417, inflation-adjusted. While gold is, technically, a commodity, it doesn’t behave like it, as Craig explained. “Gold is the world’s money – it has applications against every currency on Earth. We have had an extensive ‘bull run’ over the past 10 years but the price is not all about supply and demand – it is a complex mechanism.” Bank failures, low or negative real interest rates and factors such as war and broader economic crises all affect the price of gold. It is in reasonably plentiful supply, so the price should go down – but the additional influences produce the opposite effect. One of the attractions is that it has monetary value all over the world, as Craig pointed out. Most people prefer to keep their wealth in the form of banknotes, which are lighter and easier to carry, but the easiest way to transport gold is in the form
of Krugerrands, which is a legal currency – which is one of Rand Refinery’s significant product lines providing absolute product surety. “The gold that arrives at our refinery is already at 85-90 per cent purity. We refine it to 99.99 per cent – essentially 24 carat. We may then alloy it down for Krugerrands, for example, by adding copper and silver,” he said. “We make large and small bars, coins and we’re starting to make metal rings, as well.” Once upon a time, ingots and Krugerrands accounted for pretty much all of Rand’s output but the market has moved and Rand is moving with it. “We are moving ourselves up the value chain,” said Craig. “Institutional customers want their gold in coins and big bars; other customers want smaller bars, coins and other products.” Rand Refinery was established in Germiston, near Johannesburg, in 1920 by the South African Chamber of Mines as the sole authorised refiner of gold. It is now majority-owned by Anglogold Ashanti. Rand Refinery is not only London Bullion Market Association (LBMA) accredited, but also has the prestigious professional accolade of being an LBMA worldwide refinery Referee . While there are, now, other smaller refineries in South Africa, Rand remains not www.southafricamag.com 115
Rand Refinery FEATURE
only the country’s leading refinery, it is the largest integrated single site refinery-smelter complex in the world. Over its existence, it has refined one-third of the gold that has ever been mined. It works with the Miller process and, more recently, with an electrowinning process. The sources of its raw materials have changed, as well. For much of its existence, its primary suppliers were the goldfields around Johannesburg; these days, scrap – including industrial and electronic scrap, such as computers and electrical equipment – also finds its way to Rand Refinery. It is the scrap sources that led to the installation of the smelter. “We source precious-metal bearing wastes, which have high precious metal content, from all over the world. Altogether, we receive 55 different types of waste products, and we can’t put them directly into the refinery,” he said. “The refinery is still producing in volume for bigger gold and silver output. This year, for example, will see around 400 tonnes going through the refinery – but the smelter will process something like 4000 tonnes of low-grade waste material. Like many other concerns, we are focusing on recycling and we believe we can grow the smelter business, going forward.” Perhaps strangely, however, Craig maintains that refining is only one of a number of functions that Rand undertakes. Logistics, fabrication and financial activities are at least as important. “We have a big logistics division,” he said. “We bring in gold from across Africa and that has major security implications. We use third-party contractors but we manage it very closely. Fabrication is part of our core business and it is about adding value.” The company has longterm and loyal relationships with its suppliers but while refining and fabrication may provide the bulk of turnover, the impression is that it is
the financial segment that determines the level of profitability. “We have a big treasury function,” he continued. “We buy gold from the mines and immediately sell it on through back to back transactions. We never actually own the gold we process; we handle it on others’ behalf. We charge refining fees and agent premiums. We manage the treasury function to ensure that customer requirements are met and are delivered within the specific time frame as well as each product being of the highest quality. Rand Refinery is, effectively, both a manufacturing and banking concern – you can’t separate the two functions.” The fact that Rand does not hold gold in its own name means that it is less vulnerable to swings in the market but that doesn’t mean that it can be relaxed about costs and efficiencies. It is in competition with refineries in Europe and the Middle East and other parts of the world; it has to run a tight ship. Part of doing so is ensuring that the right skills are in place. “We have a particular focus on training, especially in developing potential leaders,” said Craig. The company has a range of disciplines, from artisan trades to chemists and assayers. “Our employee standards have to be of the highest grade. Our recruitment principles are based on an approved employee equity policy. The aim is to establish each employee’s core skills and to distinguish and identify those with potential to further development. We provide them with higher training in order to progress.” The Ekhurleni Jewellery Project launch provides state-of-the-art jewellery training and manufacturing facilities. Rand Refinery was awarded ISO and OHSAS certification by international standards auditing body DQS, with the best results ever recorded. END
Gold is the world’s money – it has applications against every currency on Eart
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Thermal Ceramics Thermal Ceramics South Africa (Pty) Ltd. A W O R L D F O R C E I N H E AT M A N A G E M E N T
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Fax: (+27 11) 362 4673 E-mail: info@tcsa.co.za Website: www.thermalceramics.com Distributors of our products Resistant Materials Services Telephone: (011) 917 0702
Cape Refractory Industries Telephone: (021) 534 1136
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Elements Galore Telephone: (011) 664 8114
IT’S TAKE OFF FOR SOUTH AFRICA
tourism An unparalleled World Cup coverage has opened the eyes of the world to the real South Africa and its fantastic attractions. Leading South African hotelier, Andrew McLachlan tells Colin Chinery that for the hotel and tourist sector the next 18 months will open “a huge window of opportunity
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The Rezidor Hotel Group FEATURE
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iva España: Forward South Africa! World Cup 2010 will change how the rest of the world sees our nation. Total tourism revenue estimates for the World Cup are around R27 billion. Last year it was R100 billion. And for travel and tourism, positive visitor experience is a massive if incalculable legacy. According to the Department of Home Affairs, 1,020,321 overseas visitors came here during June compared with 819,495 during the same period last year – 25% up. They have come from new markets such as Latin America as well as traditional countries like Britain, Australia, Germany and the USA. And the overwhelming majority is surprised and delighted by what it has seen and experienced, returning home positive towards South Africa and spreading affirming messages.
Take off for SA tourism Leading South African hotelier, Andrew McLachlan, sees the next 18 months as “a huge window of opportunity. “The fantastic World Cup tournament has put South Africa right on the map. We’ve never had the exposure we have right now, and there’s been far more good news than bad. I think South Africa is positioned exceptionally well to take off.” It will taking off from an unprecedented high, with Visa reporting spending by international visitors in South Africa on Visabranded payment cards during the lead-up to and during the group stage of the event topped R1.33 billion. That’s a 65% increase over the same period last year. “The quality of product and what we have to offer in South Africa is world class,” says McLachlan, The Rezidor Hotel Group’s Vice-President Business Development Africa and Indian Ocean Islands. “South African service standards are good. We have an exceptionally friendly staff, and across the board I think we offer good value for money compared with the more mature markets.”
Fast growing Rezidor is one of the fastest growing hotel companies with 406 hotels in 62 countries across EMEA, and an international leader on the South African hospitality market. Since 2000 it has opened five hotels in South Africa, four Radisson Blu; Cape Town, Port Elizabeth, and two in the up-market Sandton district of Johannesburg, where it has just opened its first Park Inn by Radison in the country. Within South Africa Rezidor operates three of its five international brands - the mid market full service Park Inn by Radisson, the iconic Italian fashion and lifestyle brand Hotel Missoni, and first class full service Radisson Blu brand, the core driver. “We see Radison Blu going into every capital city in every country in Africa.” Park Inn by Radison is Rezidor’s the fastestgrowing brand in Europe, the Middle East and Africa. In the seven years since it was launched it has grown from zero to 140 hotels across 26 countries. “We originally thought that once we’d got to the magical one hundred we’d have critical mass, and then we realised this isn’t the case,” says McLachlan. “With the new brand positioning of Park Inn by Radisson which was launched in June this year the market recognises and appreciated that Park Inn is the younger brother of Radisson, and we see a bright future for the Park Inn by Radisson brand in South Africa, bordering nations and also in the East African Great Lake district and West Africa focussed on Nigeria. It’s the brand we see offering the most growth in the South African market.”
It has to be Cape Town! Cape Town is the prospective setting for the country’s first Hotel Missoni, now in planning stage and with a projected opening for the end of 2011 or first quarter 2012. “Cape Town is definitely a destination that can house a Hotel Missoni from a market www.southafricamag.com 119
The Rezidor Hotel Group FEATURE
acceptance point of view. Cape Town has become a global jet-setting capital. It has a big association with film and fashion industry because of the good light we have in Cape Town; there are a lot of fashion catalogues and a big modelling industry here. “So a Hotel Missoni is a natural fit for Cape Town. If you looked at the continent of Africa and said where you think Hotel Missoni would go to you would immediately say Cape Town. And we think Hotel Missoni could go to the markets of Mauritius, the Seychelles and maybe Marrakech in Morocco. It needs to go into trendy, hip destinations. It’s not a brand we see having a lot of development in the rest of Africa.” Rezidor’s market entry strategy is to go in first with Radisson Blu, our global brand with wide recognition. “It’s our heavyweight boxer brand going into the ring. Whoever is in the market - and whoever comes in after us - we will complete and beat with Radisson Blu. “Once a Radisson Blu is established we would look at either trading up or trading down in brand, but realistically there aren’t too many places in Africa where it is necessary to trade up in class of hotel above a Radisson Blu.
Five star Blu “While in parts of Western Europe it is sometimes positioned in the four star segment, within Africa, Radisson Blu is five star brand.” McLachlan, 39, has been in the industry over 20 years, starting as a trainee, working his way up through the ranks to hotel general manager before moving into a hotel development role.. At the end of 2006 he joined Rezidor to set up its Africa development office. “It was a fantastic opportunity. They’ve got great brands, good support and an international presence and marketing reach. Since then it’s been quite a roller coaster ride. “One of the reasons we have grown at the pace we have is that we offer contemporary flagship properties with iconic architecture and bold 120 www.southafricamag.com
You don’t pay for the use of shampoo in your room and we don’t think you should be paying for your internet Andrew McLachlan
design solutions that have become increasingly synonymous with Rezidor. These new hotels have “destinational” qualities and have become “the talk of the town”, not just locally.
Unique African positioning “As guests experience them they want a similar product in their city so an opportunity presents itself. It’s like a snowball that it pushed off the top of a mountain and as it goes rolled down it’s gaining momentum and growing bigger and bigger. “And we are seeing this within Africa. We are the only international hotel company that from a development point of view has a ground presence in Africa - and run by Africans - as opposed to our international competitors who fly in and fly back to Europe, the States or the Middle East”.
This says McLachlan, results in Rezidor understanding the local conditions and environment better. “We can also be the first mover and the fast mover into these markets when an opportunity presents itself.
‘Yes I Can!’ Rezidor’s USP is ‘Yes I Can!’ “It’s a service philosophy that includes everyone from a person cleaning a hotel swimming pool right up to the President and C.E.O. We all gone on the “Yes I Can!” training, and we empower our staff to make decisions and exceed guest expectations.” And the boundaries of ‘Yes I Can!’ are being continually extended. “We call it the Z spirit; we like to do things first and pioneer new service philosophies. Take free internet for example. We decided a long time ago that just as you would expect to have shampoo or a television in your hotel room, today you also need to have a good quality high speed internet. “You don’t pay for the use of the shampoo in your room and we don’t think you should be
paying for your internet either. I feel it’s almost an insult to be charged.” “Rezidor has a service philosophy that I don’t think anyone has copied - the 100% guest satisfaction or your money back guarantee. So we really need to be on our toes!” As shadows fall across the now silent World Cup stadiums, Andrew McLachlan believes that for the hotel industry the momentum will drive forward.
Let’s Go! “From a South African perspective we are fortunate in that three months after the tournament ended we move into our traditional high summer season so the dip should be short and quick. So I see the next 18 months as a huge window of opportunity. “A lot of people who haven’t visited South Africa, will have seen all the publicity and heard all the good things spoken about our country and they will be saying: ‘Hey, let’s escape the winter and go to this place called South Africa. It looks fantastic!” END www.southafricamag.com 121
SETTING THE
R I G H T CO U R S E
The activities of Compass Group South Africa range from workplace foodservice through sports and hospitality catering to specialised fine dining. It has come a long way since its origins in the early 1980s, Ruari McCallion found.
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Compass Group FEATURE
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rather special event took place at the World Bank, in Washington DC, in June 2010. The international gourmands, bankers and finance professionals at the headquarters of one of the world’s two international resource institutions were able to sample a taste of South Africa in their own restaurant. This wasn’t simply another exercise designed to raise awareness of World Cup 2010; the two chefs from South Africa, Fiona Kleinhans and Papi Leteka, were there because they had emerged through a rigorous competitive process, examined by judges including Heinz Brunner and Kevin Garratt, both members of the Academy of Chefs, part of the South African Chefs Association (SACA). When they got to Washington they spent five days preparing and serving regional favourites, such as biltong salad, corn bread, lamb stew, ostrich kebabs and melktert. Compass Group is a global foodservice organisation, headquartered near London in the UK. It became involved in South Africa in 1997, when it bought a near-70 per cent stake in Kagiso Khulani Supervision Food Services (KKS), which was founded as a Black Economic Empowerment organisation. Headquartered in Woodmead Park, Johannesburg, it now has over 6200 staff. In common with Compass Group operating companies across the world, Compass SA is organised into specialist divisions, which each have their own distinct branding and style and are focused on particular sectors. KKS continues as the largest single segment of the company, providing management and delivery of food and beverage services to a variety of organisations ranging from large corporations through healthcare institutions to private schools.
Among its high-profile clients are Mercedes East London, where the KKS unit recently received ISO 22000:2005 (food safety management systems) certification after an audit conducted by SGS South Africa, System & Services Certification Division – the first such certification to be received by a foodservice organisation in South Africa. The company’s Risk Operating Manual, launched to all Compass Group SA Operating units in October 2008, is in line with the company’s policy on ensuring security and traceability ‘from field to fork’. In June 2009 it was announced that Compass SA had been awarded a three-year foodservice contract at ABSA, one of South Africa’s largest financial institutions. A significant upgrade to ABSA Towers North Food Court in Johannesburg is intended to bring the facilities up to the global benchmark of the bank’s parent company, Barclays plc. Compass SA has introduced a coffee shop and selected high street brands, as well as its Balanced Choices ‘healthy eating’ brand for the business and industry sector. One of the challenges facing the foodservice industry is rising food prices, which are escalating by as much as 14 per cent in South Africa. By addressing issues such as waste and portion control, and by working closely with its supply chain, Compass SA has been able to extend choice, improve quality and continue to offer value for money. Greater variety, recognised brands and the introduction of healthy eating options have helped to increase participation. A new dining concept has been introduced and installed at Siemens’ South Africa headquarters. Inspired by the Siemens’ German head office restaurant, the new
One of the challenges facing the foodservice industry is rising food prices, which are escalating by as much as 14 per cent in South Africa
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Compass Group FEATURE
catering arrangements focuses on raising wellbeing in the workplace. Three choices each of proteins, vegetables, starches, salads and sweets are offered at separate serving stations. A separate call order station offers two options from a range including a rotisserie, pizza, baked potato, stir-fry, grill and pasta. Twenty-three KKS staff at the Siemens facility cater for more than 1000 personnel on-site, through the restaurant, coffee shop and convenience store.
A variation on the corporate catering theme is provided by Gham Gourmet, which was founded in 2000. Its objective is to create a niche in the market through high-street style branded ‘menutainment’. With cooking carried out in plain sight of diners, it is at times quite spectacular, combining irresistable aromas with the visual feast of professional chefs at work. For those who like a walk on the wild side, Compass Game Park Services provides a variety of authentic
The company’s training policy offers on-site development plans and the potential for employees to work up through the company or train in other roles
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and exciting catering attractions in Kruger National Park, South Africa’s largest tourist attraction. Casual and light dining is available at the Wooden Banana outlets, or visitors can take their time in the Park’s restaurants – but no visit would be complete without a traditional braai, either at one of the Broma Braai fixed locations or a Bush Braai, which provides five-star service under starlit skies. More conventional travelling fare is provided at ORTIA, CTIA, Bloemfontein and George airports by All Leisure Travel. All Leisure is also the brand found at sports stadiums and events. House of Bonne Cuisine and Town & Country Cuisine are Compass SA’s premier fine dining companies. They deliver silver service catering and event management services at prestigious sporting and conference venues. The final leg of the Compass SA table is ESS, which is the company’s facilities services management division and provides services ranging from cleaning to buildings maintenance and supply chain optimisation.
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All the Compass SA divisions share a commitment to excellence in all aspects of operations and none of that would be possible without investment in its people. The company’s training policy offers on-site development plans and the potential for employees to work up through the company or train in other roles. It has an integrated approach to broad-based black economic empowerment (BBBEE) and a track record in which it takes pride. It has focused efforts in the areas of corporate social investment, enterprise development and preferential procurement, and has already achieved level 3 status. In October 2007, Compass SA appointed a Director of Transformation, who has executive power and is tasked with delivering the company’s strategy for sustainable and fully integrated BBBEE. Compass SA is a visible manifestation of Compass Group’s concept of ‘think global, act local’. It draws on worldwide experience – but it has developed a style and presentation that is uniquely South African. END www.southafricamag.com 125
Charmer A CAPE TOWN
In parkland minutes from the waterfront and city centre, is a Cape Town idyll. This is the Vineyard Hotel & Spa, for more than a century a place of tranquillity and fine hospitality. General manager Roy Davies talks to Colin Chinery about its allure
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Vineyard Hotel & Spa FEATURE
Along its banks in six acres of parkland, is one of Cape Town’s best and most open secrets; the award-winning and deluxe 207 bedroomed Vineyard Hotel and Spa Conference Centre. “The Vineyard is the oldest lady in hospitality in Cape Town,” says General Manager Roy Davies. “It’s been looking after guests for 116 years. You are in suburbia but seem far removed from it.”
Convenience and tranquillity
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electable is a rare accolade and one from which the leafy southern Cape Town suburb of Newlands has no cause to shy. This is a lush encounter. Table Mountain rises at its feet, Newlands cricket ground Test venue and home of Western Province - is one of the most picturesque in the world, and the Liesbeek River passes through on its journey from the mountain gorges above Kirstenbosch National Botanical Gardens before emptying into Table Bay.
Near and far. The Vineyard Hotel & Spa is within easy walking distance of the fashionable Cavendish Shopping Centre and ten minutes from the City Centre and the Victoria & Alfred Waterfront. And yet as Davies points out, “We don’t sit in the hubbub of activity which is Cape Town city bowl and the Waterfront area. We are in what is almost parkland, most of it indigenous and in front of us a view of the spine of Table Mountain.” Originally built by the eminent diarist Lady Ann Barnard in 1799, the Vineyard Hotel & Spa remains a traditional and elegant retreat, celebrated among Capetonians for its peaceful setting and the excellence of its cuisine and fine wines. Enchantment for tourists too. Forty five per cent of the guests are from overseas – the majority from England – one writing recently; “Great hotel, great service, great food, great staff; would love to go back.” The hotel takes every advantage of its striking location, and the sunny lounge and terrace areas overlook gardens with magnificent views of Table Mountain. Little wonder that is one of the finest venues in Cape Town for conferences, wonderful for weddings or special occasions Inside, the house is filled with works by leading South African artists and with rooms ranging from single to family suites, both mountain and courtyard facing.
Fine cuisine and wines The Vineyard Hotel & Spa has two outstanding restaurants, ‘The Square’, a great favourite for www.southafricamag.com 127
Vineyard Hotel & Spa FEATURE
breakfast - “ probably the best breakfast you are going to find in Cape Town” - lunch and dinner, as well as a popular sushi bar, and Myoga Restaurant run by local celebrity chef Mike Bassett. Here is fine cooking with an Asian influence. The restaurant, which showcases a contemporary global fusion cuisine, opened its doors in 2007 and was rapidly voted into the Top 100 New Restaurants in the World – one of only two in South Africa - by Condé Nast Traveller. “Mike Bassett’s global brand of cooking continues to wow” enthused the judges. The hotel offers its guests two swimming pools - one outdoor and surrounded by loungers - and one heated indoor pool. The addition of a Health & Fitness Centre and an international Angsana Spa operated by the Banyan Tree Group contributes to its position as ‘The perfect Setting’. “The big thing about the Vineyard is when you arrive at the hotel you see a restored old house, and you will form the impression that it is small,” says Roy Davies. “But it’s one of those places that peel back in layers as you move though it and it’s a continual surprise.
A place of atmosphere “So you walk from the lobby into a space that is renovated or new, and then into the garden. It’s an exceptionally relaxed atmosphere. For some, the Vineyard is their local and they want us to remain their secret hideaway. It’s not one of those properties that has been advertised over the years and made a big thing of. It has quietly got on and done what it does very well.” The Vineyard has been host to five World Cup squads, but Davies knows the form book. “The people who come here are not ostentatious or glitzy, but they may be well travelled.” The original house was built in a vineyard of 20,000 vines, but overtime these dwindled and 150 years ago had disappeared. But in 2008 a hundred vines were planted and these will start bearing fruit for wine making in two years. 128 www.southafricamag.com
“We have generated a partnership with five family-owned vineyards, four in Stellenbosch and another in Constantia - one of the families has been making wine since the mid 1600s, another since 1752.” (At the Vineyard you cannot take leave of history. It was along the banks of this river in 1657 that the first ‘free burghers’ of the Dutch East India Company were granted land to farm shortly after the first Dutch settlers arrived in the Cape) It is an association developed at the hotel at wine-paired dinners where guests hear about the farms and the relationships. “We remind them that this is the history of the hotel, and slowly but surely from a hospitality point of view we are building up the base of a wine reference.”
An exceptional staff The warmth and attentiveness of the 340 staff - some have been here for nearly 30 years – is an almost routine point of comment among guests. “Because this is a family-owned business the family has looked after the staff over the years and the staff takes that hospitality on to the guests, many of whom come back to the Vineyard year upon year,” says Roy Davies. “Many a hotel is able to do smart, slick appearances, but our staff have a lot of heart and a lot of caring - which is not something you find in hospitality, in many cases because a lot of services are outsourced. “This is a family owned and operated business and the values of family extend to our welcome and through everything we do.” In the spirit of its location, the Vineyard Hotel & Spa is committed to ‘living green’, with sustainable development principles incorporated throughout the hotel. “We have a fairly strong Green culture in the hotel and this began well before it became the vogue. We spend on technology way up front to reduce our carbon footprint.”
Hide-away and gateway If the Vineyard is something of a hide-away to the initiated, it is also a gateway to Cape Town and its magnificent coastline and hinterland.” “There are so many activity opportunities in the Cape Town areas,” says Davies. “You can play golf every day for two weeks and not have played on the same course. You can go to the vineyards , go up Table Mountain, the botanical gardens are minutes away from us, you can go whale watching. So much activity. And then you can drive from here up to the Garden Route, Mossel Bay to Plettenberg Bay; it’s a very beautiful part of the world.” In the beauty and tranquillity of the Vineyard Hotel, fear of crime seems incongruous, but as Roy Davies says, it remains a big issue. If I was living in the UK and read the tabloids and watched Sky, I would be influenced into thinking that if I went to South Africa I would have to be very careful because XYZ can happen to you. “But when people arrive here they have commented that there are places in London where they wouldn’t go at night. All you have
to do is be reasonable, know where you go, ask about places where perhaps they shouldn’t go. “There have been 24 hour World Cup courts set up to handle criminal activity so that the courts could process people while they were here. And do you know, the bulk of the crime addressed in these courts has been perpetrated by foreigners.”
World opened to the real South Africa Davies believes the World Cup experience has opened the eyes of the world as to what South Africa can provide. “Recent exit polls of people returning to Europe are showing that many would be happy to return to South Africa. The media had given a distorted view about what South Africa was about, it was not what they expected and they were very pleasantly surprised.” After the strengthening of the Rand ahead of the World Cup, he foresees a softening, “which will make it slightly cheaper for people to come to South Africa and make our prices even more attractive.” For the visitor to the Vineyard Hotel & Spa, the prospect is the more alluring. END www.southafricamag.com 129
future Your
Sello Tlhotlhalemajoe, Business Development Manager at e-KwikBuild Housing Company, talks to Erica Wark about the company’s recent growth spurt. 130 www.southafricamag.com
I
ts 9am Monday – you open up your emails and see that you’ve landed a contract to start working a new site, let’s say mining – fantastic news! You want work to start immediately, and that means you need site offices, housing for staff, all manner of facilities, and you need it all to happen fast
KwikBuild FEATURE
To give you an idea of just how quick Kwikbuild are: A 60 square metre office can be built in as little as 4 days, a 30 square metre house, including all plumbing, can be built in as little as 3 days. Until I spoke with Sello Tlhotlhalemajoe I must confess to having quite an outdated and naïve understanding of the world of prefabricated buildings. As with any industry, technology and product capabilities evolve over time. Gone are the days when prefabs equaled temporary or ‘disposable’ buildings. Kwikbuild buildings can last a life time – whether built
Gone are the days when prefabs equaled temporary or ‘disposable’ buildings
The answer: Kwikbuild What would it mean to you if you knew that within 48 hours you could have a site plan of buildings designed to your exact specifications, with 3D illustration and costing delivered to you… AND even have it built in a week or two, depending on the size?
to last in one place, or moving to multiple locations. The quality of the materials means that they have longevity no matter what your requirements. Moreover, the solutions that Kwikbuild offer provide every modern comfort, finished to high quality, and have a staggering number of advantages over ‘traditional’ bricks and mortar buildings. To name a few; Development and installation time is significantly faster than traditional builidings Flexibility in usage and site moves Ease of supply Cost effective Improved insulation Structures can be erected on any terrain Structures can be erected by semi-skilled labour Construction of the top structure only involves a dry building process No need for costly steel or wooden frames. I presume this refers to scaffolding, as our we give an option of building on a concrete slab or on a metal frame. www.southafricamag.com 131
KwikBuild FEATURE
What’s more, the materials used are: Weatherproof Fire resistant-insulated core is Expanded Polystyrene with a Flame retardant Durable Provide excellent insulation Meet stringent South African regulations Materials are recyclable Most materials are sourced from South Africa, but Kwikbuild seeks more economical suppliers if this means they can maintain quality but achieve more competitive pricing, an area where competitors have let standards fall.
Kwikbuild are so confident in their product and their build concept that any purchase you make from them comes with a full 5 year structural warranty, and use of their team for any ‘snagging’ for one year. Realistically, once you are a client of Kwikbuild you can trust that they will assist you in facilitating site moves for as long as your company has use of the buildings and land to put them on. Kwikbuild have construction teams that have been with them since the start of business 7 years ago. However, despite
A 60 square metre office can be built in as little as 4 days, a 30 square metre house, including all plumbing, can be built in as little as 3 days
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the exponential growth of the business and movement into the African market geographically, Kwikbuild ensure that experienced teams are sent out to new sites, with a 50:50 balance of their team then helping communities by providing employment of the other half of the team needed, transferring skills of how to construct these buildings. If you’re interested in seeing examples of Kwikbuild’s work then there are plenty of options for large scale projects in both the public and private sectors. In South Africa these have included providing social housing to the Ministry of Housing, and (classrooms) for over 5,000 students across the country for the Ministry of Education. Medical clinics and laboratories have been built for the Department of Health. KwikBuild is working with local authorities involving the re-development of ‘shanty towns’, with an estimated immediate demand for 4 million low-cost homes. They have already been involved with contracts for improving quality of living conditions by replacing corrugated steel roofs with 60mm thick thermally insulated roofs in government low cost housing to meet suburban housing specifications (still negotiating). Furthermore, KwikBuild is a significant constructor of worker camps for the mining, oil and gas sectors throughout Africa; the most recent contract was in Angola. Kwikbuild developed such an impressive track record and business pipeline that 18 months ago LONRHO Plc were thrilled to become involved in providing capital to enable the company’s growth. The achievement of trebling the Kwikbuild turnover in the last year was an undoubted incentive for Lonrho! They have now grown from a small to medium sized business in South Africa in rapid time – certainly their speed of growth equating with the company’s name! This investment of course also assures that Kwikbuild have state of the art technology
CAD, their ‘Solidworks’ programme delivers accuracy of design and speed of turnaround as mentioned earlier. With a priority service available, should you need the plans back within the day, and a typical turnaround on plans of 5 days at the busiest time – this includes full costings, technical drawings and every facet to meet the client’s needs. So what is next for Kwikbuild? In the private sector they’re constructing the (Cape Town Station Deck Trader Stalls/ Units), a R18.5 million contract in itself…. but they still have capacity for more. They are currently embarking on a R10 million project for a hospital at East London (Frere Hospital), plus and a 700 pupil school near Port Elizabeth is now in Kwikbuild’s rapidly expanding portfolio. It really would seem that their buildings are a practical solution for any industry sector, and any geographical location…. Perhaps you would like to add your next project to their schedule? www.e-kwikbuild.co.za END www.southafricamag.com 133
More than
Skin
deep Esse Organic Skincare has been providing all-African, all-organic skin care solutions to South Africa for ten years. Jane Bordenave speaks to founder Trevor Steyn to find out what drove him to create this unique business and where he is taking it from here.
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Esse Organic Skincare FEATURE
E
sse Organic Skincare has been selling its products to South African spas and salons since 2000. The company prides itself on its ethics and its products are all certified organic, cruelty free and fair trade. As well as selling to the domestic market, the firm has also made inroads in the US, Netherlands and, most recently, Japan. It makes its own products, which are then sold to spas and salons for use in treatments and for their customers to purchase. Company founder Trevor Steyn established Esse after working as a research chemist at the University of Kwazulu-Natal, where he was studying the properties of indigenous
African plants, “we had been working with some traditional healers, who pointed us in the direction of plants with medicinal properties,” he says, “the research we then carried out backed up what the they had said and I realised that there were some species that had an application in cosmetics and beauty. I started looking at how I could use the expertise I had gained while doing research to set up a business.” Over the years, the company’s ethics base has grown to incorporate new concerns and developments. Trevor had decided right from the outset that the company would provide organic cosmetics but at that time, while there was official certification for organic food, there was nothing outside of that. Over time, however, there have been big leaps forward in this area, “at first we weren’t certified because there were no internationally accepted standards. However, in 2003 Ecocert entered into South Africa and we became certified by them,” says Mr Steyn, “since then, we have been accredited by Beauty Without Cruelty, meaning neither we nor any of our suppliers use animal testing, we are an accredited good partner with PhytoTrade Africa (a Fair Trade organisation) and we are endorsed by the Vegan Society, as we use no animal products.” What makes Esse unique is not just that it is a manufacturer of organic cosmetics, it is the only organic www.southafricamag.com 135
Esse Organic Skincare FEATURE
company that has focussed solely on the professional beauty industry, “while there are many other brands that sell beauty products to the spa and salon industries we are the only ones that offer a complete range of certified organic professional products. We also offer an opportunity for consumers to contribute toward poverty alleviation in Africa,” says Mr Steyn. This ‘African’ element of the business is also a key unique selling point on its own, but when combined with its organic and social responsibility facets is probably the most important point of difference the firm has. Mr Steyn does not believe in allowing the company’s ethical credentials to stagnate.
While it is already in step with trends regarding toxicity, the drive towards more natural products and ethical business, there is what he describes as a “competing trend” in the shape of carbon neutrality. Believing that, like organic products, the popularity of carbon neutrality is unlikely to be a flash in the pan, Esse has already set about becoming a carbon neutral business. “We’ve carried out two audits so far to help us to reduce our carbon footprint. As things stand we are already doing quite well,” says Mr Steyn, “We source most of our ingredients locally so raw material transit is not a major factor. However, when it comes to exporting our products overseas, there really is no option but to airfreight due to the fact we don’t use conventional preservatives. So the only solution has been to purchase carbon credits.” There is one change that the carbon audit has enabled the company to make – it now recycles its own glass, “we have always packaged our products in glass as it is a widely recycled
Over the next five years the company is hoping to increase its presence in other receptive markets Trevor Steyn
material. But from our carbon audit it became clear that our old system, where we were potentially buying back our own glass in recycled form, didn’t make much sense” explains Mr Steyn, “so we looked into recovering the
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packaging from the customer and processing the bottles and tubs ourselves. We found that this would have multiple benefits, reducing both carbon emissions and cost. We are able to pass these savings back to our customers, providing free products as an incentive to return the packaging to us.” As a supplier of luxury product, Mr Steyn was prepared for the company to take a hit during the recession and for sales to fall. The result was not as expected, “our turnover actually doubled,” laughs Mr Steyn, “Looking back we feel that there were two reasons for this: Firstly - when consumers were put under financial pressure they looked more carefully at their purchases and shifted towards brands offering value for money and secondly it was easier to “downgrade” to an organic brand than to an conventional brand”. Looking forward, the company is already company is hoping to increase its presence developing new markets and new products. in other receptive markets. Esse also has scatters oil qtr ad3.indd 1 Recently, it signed a deal with a distribution high hopes for new products that aim to company in Japan, rebalance the skin’s which it expects to natural fauna in order grow into its largest to solve problems, market within the and plans to increase next few years, “Japan the outsourcing work is well ahead of the done by its research rest of the world and development when it comes to its department. A long, appreciation of organic but unsurprising list and natural beauty for a company that is products,” says Mr constantly evolving Steyn, “at the retail and exploring new end, whole floors of ways to benefit its department stores are customers while sometimes dedicated maintaining its to these products. It ethical roots. With is what you might call a ‘pre-educated’ people becoming increasingly interested in market, because the general population natural and environmentally friendly ways are already aware of the benefits of these of life Esse Organic Skin Care will be top products so they don’t need the same kind of the list for people looking to ensure that of explicative promotion as they do here in the appeal of their beauty products is more South Africa.” Over the next five years the than skin deep. END
7/13/10 8:23:4
While there are many other brands that sell beauty products to the spa and salon industries we are the only ones that offer a complete range of certified organic professional products
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Green machines Jane Bordenave talks to Ruben Janse van Rensburg about HP’s product lifecycle strategies in Africa and putting sustainability at the heart of its business.
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Hewlett-Packard FEATURE
H
ewlett-Packard Corporation, more commonly known as HP, is one of the world’s largest IT companies, providing solutions that encompass the whole range of desktop computing and peripherals. As a company, it has been offering recycling services since 1957, however in South Africa this is a newer venture. In April 2009, HP in South Africa began recovering hardware that had reached the end of its life and sending it for recycling. In South Africa and Africa as a whole there is little if any specific guidance or legislation in place for companies to follow regarding end of life disposal and E waste. But HP has not taken this as a signal to do nothing; the company is applying the high standards of its global policy in this area to its operations in
HP’s outlook on product lifecycle management really does follow the maxim of ‘reduce, reuse, recycle Africa, “it is an area that local legislators are looking in to at the moment, although no firm moves have been made yet in any direction,” explains Mr Ruben Janse van Rensburg, Environmental Manager for English Africa, “however, we will of course adapt our policy to meet any additional requirements set out by local government.” The firm’s recycling policy is extensive and includes recycling old products originally sold to its customers by competitors, “clearly we accept that our customers may have used other suppliers before coming to us. They may have old CRT screens or other items that are no longer useable that they need to dispose of but that they did not originally purchase through us,” says Mr van Rensburg, “whether it is something we sold them or not does not www.southafricamag.com 139
Hewlett-Packard FEATURE
matter – we will even take things that we don’t sell anymore such as older IT technology products. All we require is that they are a current HP corporate customer and that the total load in question is over 250kg.” The business takes a holistic approach to recycling, and has taken the decision to see through the full process in what Mr Janse van Rensburg describes as a ‘cradle to cradle’ approach, “we have already carefully selected our recycling partners, but we will follow all material fractions of these goods through from the point at which they are picked up to when they are packaged up as, for example, raw materials that will be used to make a new products.” As well as closing the precious metal production loops, precious metals used in circuit boards are also recovered during the recycling process. Like gold, silver and platinum, recovering these materials reduces the energy used in their production process, but it also reduces the need to mine new gold, silver and platinum for this industry too. HP’s outlook on product lifecycle management really does follow the maxim of ‘reduce, reuse, recycle’. The company’s environmental mission begins even before the point of sale, from product design to educating customers in what solutions will best suit their needs and are environmentally sound . By encouraging right-sizing, the firm can seek to ensure that its products are used in as ecologically sound way as possible. However, this is probably the most difficult part of the company’s green initiative, “education is key
because, while you can send out brochures with the product and give demonstrations at set-up, once it is in the customer’s hands it is up to them to use the equipment properly,” says Mr Janse van Rensburg, “so we need to constantly come up with initiatives that will change people’s attitudes and change their behaviour.” Showing companies how keeping the default dual-sided printer settings, for example, or turning off a monitor can benefit them financially as well as working as part of a Green IT strategy is key. Once customers have decided that a certain piece of equipment is no longer suitable for their needs and have arranged a replacement, HP does not immediately take the old machine for recycling. Instead, the company will try to find a new use for it, “while a company may find that a batch of computers is no longer suitable for them, they may be far from the end of their useful life,” explains Mr Janse van Rensburg.. HP firmly believes in practicing what it preaches and was recognised as one of the World’s Most Ethical Companies by Ethisphere in 2009. The whole company is ISO14000 certified, including offices like South Africa that don’t have any manufacturing capabilities. It relies on teleconferencing and collaboration software such as HP SkyRoom to enable people to meet and work together on a virtual level, without stacking up air miles in the process. Additionally, it has reduced its number of data centres from than 85 world-wide to 6 in three locations and operates fully open plan offices, reducing energy consumption and office space.
HP does not immediately take the old machine for recycling. Instead, the company will try to find a new use for it, “while a company may find that a batch of computers is no longer suitable for them, they may be far from the end of their useful life
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There are many companies the world over that consider the environmental integrity of its own company to be a key responsibility. Many seek to reduce energy consumption in their buildings and find ways to be greener on a day-to-day level. But not many take this sense of responsibility as far as HP. By taking responsibility for its corporate client’s E waste recycling, and by following the whole process through from cradle to cradle, the company is taking a more holistic approach as to what it means to be an ecologically sound operation. By engaging in customer education on an ongoing basis, it is extending the concept of corporate environmental responsibility in a way that others
Many seek to reduce energy consumption in their buildings and find ways to be greener on a day-to-day level. But not many take this sense of responsibility as far as HP may not have even thought of. And by finding a ‘second hand’ use for its products amongst people who may not have otherwise had the chance to access this type of equipment, it is giving back to the community and helping the local ecosystems. There is always further work to be done and some countries, businesses or communities need more encouragement than others, but by working with local firms to see how environmentally sound policies can benefit their business and their surroundings, and offering a way to get started on the green path, HP is helping to ensure that the IT hardware business also becomes a globally sustainable industry for the future. END
ELECTRONIC RECYLERS
Desco Electronic Recyclers established 1992, is an e-waste recycling company with its head office and processing plant situated in Kempton Park. Desco offers collection, processing and recycling services to electronic equipment importers, IT, telecommunications industries, corporations, government, educational and medical institutions. We offer a sustainable one-stop convenience, assurance of secure premises, controlled recycling processes, data protection and data destruction. Specialised services, such as warehouse and computer room clear-out, can be addressed based on customer requirements, Desco is ISO 14001 certified and conforms to ISO 14001 Environmental Management System requirements. Desco Electronic Recyclers is committed to be a world class e-waste recycler in South Africa. Tel: +27 (0)11 979 3017 Fax: +27 (0)11 979 1938 Email: info@desco.co.za www.desco.co.za
Merrypak ‘we care and it shows’ NICHE LEADER
The up-market end of packaging was unclaimed territory in South Africa until Madeline Pate saw an opportunity and set about creating niche leadership. Colin Chinery talks to the remarkable woman behind the success of Merrypak.
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Merrypak FEATURE
“Y
ou have to keep at it every day - you can’t let your guard down.” Madeline Pate is talking about the exacting values that have taken her Western Cape business, Merrypak and Print into a lead position in the South African packaging sector. “We are often asked what makes Merrypak so special? The simple response is ‘passion’ and a belief that customers are looking for a perfect product complimented by exemplary service.” Based at Maitland, Cape Town, Merrypak designs, produces and sells carrier bags, boxes, packaging supplies, scrap booking and card-making products, craft supplies, wedding and party products and stationery. It is the largest selection in the Cape and very probably the country. Merrypak carrier bags and packaging can be personalized, and paper carrier bags, boxes, wraps - and anything printed on paper or board - custom-made. There is no minimum order and short runs are a specialty.
Total reliability Consultants provide assistance to anyone unable to visit its premises and goods are sent daily to destinations all over Southern Africa. Expert and honest advice are among Merrypak’s core values. So too, best value for money and total reliability. “It’s about understanding the customer needs,” says Madeline, “and the customer need is for reliability. I always tell my staff – which has grown from five to 170 - ‘We make other people look good.’” Merrypak began as a small commercial printing works in 1985, supplying an efficient printing service to small businesses and competing in a diverse market of large and small printers. “We knew from the outset that we needed to offer something more than a good product. Customers’ trust and respect were earned by simply listening, returning phone calls and
providing feedback.” Success followed, and along with it international awards But by 1992 the sudden collapse of a major customer caused Madeline and husband Mike to diversify into the production of packaging – carrier bags, boxes and allied items. “I was going to do something that no one else was doing – the up market end of packaging. Nobody in South Africa then was making hand-made carrier bags. This was the first time they had been seen, and we did this with increasing success.” Merrypak began positioning its product as a marketing tool, giving carrier bags an entirely new application. The response was overwhelming and in a short period larger premises were needed to meet the demand for customised products. In 1995 the idea of a ‘Factory Shop’ was born and to house it 36 sq.m set aside in the middle of the factory. Fifteen years later the designated retailing space has grown to 1000 sq.m. “Each enlargement has been the direct result of requests from our customers for a wider range of allied products in addition to our original core products.”
Retailing Wonderland Madeline’s younger daughter Julie was involved at an early age, and when the business had established itself, her husband Mervyn joined the team, looking after and enlarging the premises, acquiring additional machinery and the performance and welfare for the growing staff compliment.
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Merrypak FEATURE
“Julie is truly gifted in product procurement for the large retail shop and has turned the small Factory Shop into a wonderland. She also looks after the marketing of the business and communicates with the public with the bright and informative news letter ‘Merry Mail.’ “We are a team of like minded dedicated people. Julie has started a policy of employing handicapped people who can be employed in some of the more routine packing procedures. She was also the inspiration for the free gym which we installed for the staff. They are entitled to have two sessions a week during working hours and it’s a great source of excitement for three quarters of the staff who use it regularly.” Madeline Pate’s drive, creativity and enthusiasm seem inexhaustible. She has in herself become a brand, a very sharp knife in a distinctive box, and she will be 73 in December. “I’m very fortunate. My second career started when I was 40 and I didn’t know I would have good health – and I have exceptionally good health. I put in a ten hour day every single day and it doesn’t faze me. And the most important thing that I would never have known is that I have an exceptional memory. If you’ve got all this there’s nothing to stop you is there?” 144 www.southafricamag.com
Entrepreneurial spirit Aged 18 she left South Africa to work for Associated Television in London, composing adverts for the TV ‘breaks.’ She returned two years later but it was to be another nineteen years before television followed her to open in South Africa. She married, raised three children and didn’t resume a career until she was nearly 40. In this period she became a national sales director, and got divorced. “I knew I had to look after my future and myself and no one was going to do it for me. So yes an entrepreneurial spirit, but necessity is the description in my vocabulary.” Madeline re-married, and with her second husband Mike, who had a printing background, looked to start a business – “something small because we couldn’t afford much.” They called it Merrypak - ‘Merry’ is the first part of Madeline’s nickname (she was born on a Christmas Day) “and as it tuned out everybody thinks it’s the most appropriately named company ever. “I have ended up as a packaging guru. I have experience, a certain entrepreneurial flair and a certain amount of creativity, and I’m able to bring these all together and help my
clients find the most appropriate solution to their packaging. Many packaging companies don’t have that combination of capabilities.”
Quality expected and delivered Long known as ‘The House of Packaging’, Merrypak is introducing another brand designation - ‘Merrypak: We Care and it Shows.’ ”We show it in every way we can; the way we answer the telephone, respond to e-mails, the fact that no one will wait for a quote more than 12 hours, keeping in touch, and our customers informed during production and despatch. It’s these types of customer relationship elements of our behaviour which people notice. They expect quality and it is quality when it arrives. These are values that will stay for ever.” A successful business, says Madeline, will always have competitors. “They will set out to do what we have done and of course this has happened. What we have had to do is to smarten up. Market leaders have to do this otherwise they will die. “What we have done over the years is to move away from the retail application of paper carrier bags in particular, and into the marketing and support of a brand. It might be a launch, an anniversary or a trade show. That’s where we started to position ourselves, and in this field we have no competitors of any significance because we make sure we never let a customer down. “We’ve never missed an event or a delivery, never delivered goods that are sub-standard in any way. And when you build a reputation with that level of reliability you succeed.” Green is signalling Merrypak’s advance too, with the increasing production of cardboard version of popular products in demand. “The whole thing of eco-friendly has really fallen right into our laps. Plastic is almost like a swear word now.” And Merrypak is open to business from Britain. “We are ready for this growth, ready for the customised side of our packaging on a larger scale. So if there are potential
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clients in the UK who feel they want to be treated with respect, a level of consultancy and advice, even that this distance it can be achieved. If that is what is required we can do it. We are ready and have the capabilities and infrastructure to handle it.”
Recession a No-Go term In a recession market leaders must continue marketing, and with the pressure for faster turn round, Merrypak has responded has reacted by cutting typical lead times down from four or six weeks to closer to three. “Our experience and expertise has enabled us to fine-tune our production methods.” But for Madeline Pate, recession is a nogo term. “I don’t even mention the ‘R’ word because we never experienced it. We have not retrenched one person and our turnover didn’t even stagnate. We are still having the same increase month on month year on year that we have had throughout the growth of this business. I feel it’s more to do with the human behaviour than even the product itself. At any rate we must be doing something right.” END www.southafricamag.com 145
Let the Sun
Fabien Gouzil of Tenesol tells Jane Bordenave how his company is helping the world harness the power of the sun to build a sustainable future for energy production
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W
ith 26 years experience in the industry as a whole and 14 in South Africa, Tenesol is a world-leading supplier of photovoltaĂŻcs solutions. The company has two main areas of expertise, production and installation of photovoltaic equipment and project management. It has two joint shareholders, French energy companies EDF and Total, and in 2009 its annual revenue was in excess of ÂŁ1 billion.
Tenesol FEATURE
has a 85MWp capacity and the other, here in Cape Town, with a 85MWp.” The group’s production capacity was increased by 60% in 2010 to meet the increasing market’s demands. As part of an international company, 98 per cent of the parts manufactured in South Africa are exported to its 18 other locations in the world to service those markets. One of the more unusual things about the company is the use of managerial methods from Japan that are more usually seen in the automotive sector, such as Kaizen and 5S, “Most of the managerial team here in South Africa come from a car manufacturing
We use the knowledge we have built up over the life of the company to inform our projects
Tenesol’s installation and project management activities are split across five business areas, commercial office blocks, rural electrification, public sector, solar farms and, to a lesser extent, private individuals, “while we are involved across all these areas, rural electrification and solar farms are far and away the largest markets,” says Mr Fabien Gouzil, general manager of Tenesol in South Africa, “There are also two production plants within Tenesol, one in Toulouse, France, which
background, including me, so we have brought that expertise with us,” explains Mr Gouzil, “we apply these principles not only to our own production lines and general business, but also to our suppliers. We expect the firms who deliver us our raw materials to provide us with reports at every stage of manufacturing so we can boost the quality of our products together. We require regular review meetings to improve reactions, quality and overcome any problems. The key is continuous improvement.” One of the main challenges that Tenesol is facing at the moment is an explosion in the amount of competition it is facing, “we have many, many competitors in the photovoltaic manufacture and installation business,” says Mr Gouzil, as well as the experience of its parent companies “the sector became very competitive two to three years ago, with a particularly big increase in solar module manufacturers in China.” www.southafricamag.com 147
Tenesol FEATURE
However, the company has many ways of differentiating itself from its competitors: It has the advantage of 26 years in the industry and all the knowledge that brings with it, “we use the knowledge we have built up over the life of the company to inform our projects. Whereas other companies may just use software simulations before starting, we draw on our experience to see if we agree with what the computer is telling us before we get started.” The firm also offers its customers research and development, maintenance, full independent system validation, and turnkey systems. Additionally, the company gives its customers 25 years warranty on the performance of its installations. As Mr Gouzil puts it, “there are a lot of competitors out there that make the same kind of products as we do, but there are very few that offer the same inception to maintenance service we do and beyond.” Even despite the recession, this business model is paying off. Last year the company saw a very slight drop in sales of 5 per cent, but sales this year are expected to be up by 70 per cent, with another 30 per cent increase expected in 2011, “the market for solar panels is growing everywhere,” says Mr Gouzil, “the only real effect from the recession that we did see was a reduction in price by around 40 to 50 per cent. However this is beneficial for the market, as it has made the technology more affordable and has stimulated growth; there are many available tenders at the moment.” Even so, markets come and go – Isle de la Reunion is about to reach maximum capacity, with 20 per cent of its grid electricity being supplied through photovoltaic modules, but the southern and South African markets are set to replace this lost revenue stream. The firm is also looking to target new markets, such as Australia and the USA, where there is a growing interest in and demand for solar energy production. The Cape Town plant manufactures its photovoltaic modules on a 24/7 basis, 360 148 www.southafricamag.com
days per year using a shift-work system, with staff coming almost exclusively from the local area. The company ensures that it is a desirable place for its employees to work, paying 50 per cent of any medical bills and providing a pension fund. Additionally, it has an incentivisation fund that provides a monthly bonus based on the quality of work, productivity and safety. The firm also does not believe in applying different standards of safety and environmental standards depending on the country its factory is in – all the rules and regulations that apply to the Cape Town plant are the same as those in Toulouse, France and is ISO14000, ISO9000 and OCEA certified. Tenesol very much practices what it preaches, or what it sells, in terms of environmental policy, “we try to save energy wherever we can in our offices and have plans for further improvement in this area, such as using green solar energy for our offices, automatic gates and electric fences,” says Mr Gouzil, “In Europe, we also contribute to the PVCycle scheme for recycling photovoltaic equipment at the end of its life. We ensure that the suppliers we use for our components, both in South Africa and in Europe, are working as efficiently as possible.” The future is bright for Tenesol, it is carrying out evaluations and preparation for a large scale solar farm, with construction starting in 2012 and a final production capacity
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in the range of 50Mw. Increased demand is leading to increased production and increased revenue and, as the world seeks to move away from our dependence on hydrocarbons, this is a trend that is only likely to grow. By taking knowledge and experience learned over 26 years of solar panel production and installation, and combining it with systems from outside the field, the company has created an efficient and sustainable future for itself and for all of us. END
www.southafricamag.com 149
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