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2011
Not looking forward to 2011? Fear not, for there is a lot to get excited about.
Harmony Gold Wafi-Golpu could conceivably be the “gold find of the century”.
SANRAL The first phase of the GFIP is nearing completion.
PRASA Leaving a positive legacy for future South Africans.
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2011: Reasons for optimism One thing is certain in the year ahead, uncertainty will persist. Things will change, we’re sure of that, but we don’t know when or how. If you are worried about 2011 fear not, for there is a lot for South Africans to look forward to next year, including the Rugby World Cup, Cricket World Cup, and an Oscar-contending film. South Africa Magazine is really excited about 2011 and why not? The Springbok’s bruising 21-11 win over England at Twickenham in November, reaffirmed their World Cup credentials and left captain Victor Matfield feeling confident. It also left Peter de Villiers upbeat. “The first 12 teams in world rugby, there’s only a little to choose between them and that’s going to cause us to believe more and more in ourselves going into the World Cup,” he claimed. Away from rugby, Bafana Bafana star Bongani Khumalo joins Tottenham Hotspur in January – and hopes are high at Spurs that he is merely the first of many to benefit from its close partnership with Pretoria-based club Supersport United. He joins the likes of Aaron Mokoena, Steven Pienaar, Benni McCarthy, Kagisho Dikgacoi and Davide Somma in England’s top football circles and we examine the impact he could have. Finally, the people of Gauteng have more reason to celebrate than most. They can mark a double celebration in 2011 - the completion of the first phase of the Gauteng Freeway Improvement Project (GFIP) and the completion of the Gautrain. South Africa Magazine wishes you a Merry Christmas and a Happy New Year!
Editorial
Editor – Ian Armitage Acting editor – Susan Miller 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 Erica Wark
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All the latest business news from South Africa
TRAveL Destination Cape Town
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Taking responsibility for tourism: Ian Armitage looks at Cape Town’s journey to become a ‘responsible destination’.
SPoRT Bongani Khumalo
Tottenham’s latest signing shelved a career in high finance to take a chance on a football career.
CuLTuRe 2011: Something to shout about Suffering a World Cup hangover? Not looking forward to 2011? Fear not, for there is a lot for South Africans to look forward to next year, from two World Cups to an oscar-contending film and the return of some shock-rappers.
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eNTeRTAINmeNT The Lion King
The Lyceum Theatre’s Lion King still feels as fresh and soul-stirring as ever. Best of all the UK musical stars two of Durban’s finest.
2011? ard to get ing forw is a lot to Not look for there Fear not,about. excited
2011
FeATuReS
ReGuLARS
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All the latest business news from South Africa
Wage demands could be cause of
job losses Inflexible wage demands by SA’s workers are the likely reason for massive job losses since the start of the global financial crisis. Abebe Selassie the International Monetary Fund’s mission chief for Africa said during a briefing to the standing committee on finance that job losses in other developing countries were not nearly on the same scale as South Africa’s. “What is striking is that declining employment in South Africa has been of the same scale as seen in the United States, which was at the epicentre of the global financial crisis,” Selassie said.
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“The scale of job shedding in South Africa has been very large. We are trying to understand why that has been the case. In other countries you don’t see the job losses you saw here. The rebound has been much stronger in other countries.” Selassie said one possible explanation was a “very large loss” in output in the economy, which had caused a drop in demand for goods and services.
Clyde Bergemann wins
Eskom contract Clyde Bergemann Africa has successfully concluded a contract with Eskom for fly ash handling at the utility’s Kusile Power Station. The power station is currently being built by state-owned Eskom near Delmas in Mpumalanga. Materials handling company Clyde Bergemann Africa said the order was worth about R350 million and that it would be “responsible for the design, supply, construction and commissioning of the fly ash handling system”. This includes the removal of fly ash from the bag houses to the storage silos and conditioning of fly ash onto overland conveyor belts. Last year, Clyde Bergemann Africa was awarded the contract for the same scope of work at Eskom’s Medupi station. Its German holding company, Clyde
Bergemann Power Group, received the contract to supply sootblowers for Medupi and Kusile through Hitachi, which is responsible for building the boilers. The African company was also contracted to do the complete design, supply and commissioning of a new dust handling plant for certain units at the Matla power station to the value of R95 million.
SA wine needs to
ensure sustainability Agriculture in general and wine production in particular needs to change to ensure profitability and long-term sustainability, Standard Bank’s director of agricultural banking Willie Du Plessis has said. He said pressure on the South African industry was intensifying as vineyards aged and international competition for market share increased. The local wine industry
had seen incremental growth in production over the past 12 years. However, production in the past year had shown a five percent drop. “The local wine industry is not only an important contributor to the agricultural sector as a whole, but is also an industry that lends itself to national prestige and has a very important tourism focus,” he said. However, a host of local
and international factors had forced producers to re-examine their business models, cultivars and markets. Producers should be acutely aware of making decisions based on current events without an eye on the future. www.southafricamag.com
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NEWSINBRIEF South Africa’s economic growth slowed in the third quarter of the year to 2.6 percent. GDP dropped from the previous quarter’s figure of 2.8 percent, which was revised from 3.2 percent. The MTN Group has established a joint venture with the American Tower Corporation to start an operation in Ghana. The joint venture, TowerCo Ghana, will be managed by American Tower. England and the United States should not try bidding for the World Cup again until FIFA changes the selection process, the chief executive of England’s failed 2018 campaign has said. The two developed nations were resoundingly rejected by FIFA in the 2018 and 2022 contests Thursday despite offering the best prospects for technically successful and profitable tournaments.
Zambia is one of South Africa’s top ten trading partners, according to President Jacob Zuma. “Zambia is now one of South Africa’s top ten trading partners on the continent, in so doing surpassing countries which traditionally used to attract huge investments from our country,” he said at the South Africa-Zambia Business Forum, in Sandton, Johannesburg.
Standard Bank has told shareholders they should brace for an earnings fall of as much as 12 percent in the year to December. The group said trading conditions, particularly for the core banking operations, were tougher in the second half of the year than in the first.
Gold Fields sponsors
University of Johannesburg mining engineering facility Gold Fields Limited has announced an R8 million, three-year investment in the mining engineering faculty of the University of Johannesburg. The sponsorship aims to forge an alliance between Gold Fields and the university 8
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to promote the study of mining engineering and technology, core skills required to sustain not only the company itself, but also the local mining industry as a collective. Nick Holland, Chief Executive Officer of Gold
Fields, said: “The industry is currently facing a skills gap crisis. The partnership with the University of Johannesburg will help ensure that we create a pipeline of qualified graduates who can benefit Gold Fields and the industry in general.”
Destination Cape Town travel
Cape town DESTINATION
Taking responsibility for tourism: Ian Armitage looks at Cape Town’s journey to become a “responsible destination”
IMAGES: Coco Van Oppens
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s a tourism destination, Cape Town is truly blessed: She is beautiful and has an iconic mountain slap-bang in her centre. Every year more and more people visit Cape Town seeking a variety of experiences. The city is diverse, balanced and safe, and is a top global destination for nature, culture and heritage, urban vibe, education, business and travel. The main draw is the sheer magnificent beauty on offer: stunning surrounding beaches, vineyards, mountains, flowers, whales, cliffs, dunes, caves, islands, wetlands, waterfalls, birds (it has a national park after all) and much, much more. Visitors want to experience culture (like the world famous Robben Island), and to participate with and to connect to Cape Town’s people (another of Cape Town’s greatest assets!). But Cape Town is more than just a “passive platform” for tourists. “We are much more,” says Nombulelo Mkefa, Cape Town Director of Tourism. “There are a number of challenges we face and the scars of apartheid still run deep,” she adds. “Our job is not just to sell tourism, but also to make a difference in people’s lives and ensure that tourism is contributing to that. Nothing is more important to us than our
Cape Town is the
residents, their prospects for the future and our environment.” World Responsible Tourism Day was celebrated in November during the annual World Travel Market. A key focus on that day was the Virgin Holiday’s Responsible Tourism Awards - more than 1,600 members of the public and over 600 organisations, including destinations, were up for recognition in the field of responsible tourism, having helped to “create and promote a more sustainable tourism industry”. In 2009, at the third World Travel Market Responsible Tourism Day, the City of Cape Town was awarded the “Best Responsible Tourism Destination” for “taking responsibility and for identifying and prioritising local issues from a responsible tourism perspective”. “The significance of the achievement is that it was awarded to a municipality, a local authority for the first time. Destinations and countries have been the proud recipients,” says Nombulelo. “We were honoured to have received that award. It tells people that there is more to Cape Town than our splendid natural beauty – and there is. We are a great tourist destination, but also have a leading tourism and hospitality industry. We also want to congratulate the 2010 winners for their achievements.”
Getting there by… second largest city in South Africa Train and is the capital of the Western All scheduled South African passenger trains are run by Cape Province, as well as being the PRASA. legislative capital of South Africa (the Car Houses of Parliament are there). The vast majority of roads in and around Cape Town are in It is located near the Cape of Good good condition, making travelling by car an appealing option. Hope, and is the most southern city However, please be aware of hijackers at night or at traffic in Africa. It is a stone’s throw from lights. The danger is not as high as often emphasized by the South Africa’s world-famous Cape media, but a good portion of precaution should be taken. Winelands around Stellenbosch, Please ask your hotel staff or anyone familiar with the area Paarl and Franschhoek. about where it is safe and where it is not safe. 10
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Destination Cape Town travel
According to Nombulelo, it is the city’s goal (she said it was more of a “responsibility”) to create an “enabling environment” for responsible tourism and encourage industry to work towards a more sustainable future that makes a difference to people’s lives. “Cape Town’s environment is unique – for one, the Cape Floral Kingdom is the smallest and richest on earth. Cape Town offers visitors a mild Mediterranean climate with plenty of sunshine. “What is good for visitors, though, must be good for locals and that is our focus,” she adds. “There has to be a benefit to the local
communities. We are creating a virtuous cycle, using tourism to improve the quality of life for residents, and leverage investments for local residents to support tourism.” So what is Responsible Tourism and why is it a necessary to implement? “Responsible Tourism is about making better places for people to live in and better places for people to visit,” says Nombulelo. “It requires that operators, hoteliers, Governments, local people and tourists take responsibility, take action to make tourism more sustainable, based on, economic social and environmental guiding principles.” She continues. “Of www.southafricamag.com 11
course, Cape Town currently faces extreme challenges, not only the global economic challenge that face our source markets, but also on core issues such as sustainability, climate change, conservation and poverty reduction. Cape Town’s responsible tourism strategy is linked to a range of other sector policies, programmes and initiatives aimed at developing a successful city and responsible tourism provides a structured way to achieve this.” Significantly, and certainly importantly, a growing number of tourists are now looking for a ‘unique’ travel experience and a higher quality product. “From the demand side we find more and more tourists want to get closer to the people of the destination they visit and experience the city’s natural and cultural heritage, with the knowledge that they are doing so in a responsible way without having any adverse effect on the destination,” Nombulelo says. 12
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A lot of work has been done by both the private and public sectors around sustainability and responding to the destination’s “priority issues”; Cape Town has “pockets of excellence and needed a destination strategy” that will make it a leading responsible tourism destination. “A lot is being done to encourage more responsible behaviour among visitors, locals and ensuring that tourism does indeed benefit those who have been marginalised, because we see that is extremely important,” Nombulelo says. “The City of Cape Town has invested millions in the development of tourism infrastructure in previously disadvantaged areas and has, through the community based tourism development fund, created tourism opportunities. “We want to create an enabling environment, an environment where we all work towards helping Cape Town prosper,”
Destination Cape Town travel
Nombulelo adds. “We want our children, their children and their children’s children to enjoy Cape Town in the same way we do. We don’t want to spoil the natural beauty and want to preserve it.” There is more to this than tourism, she stresses; the goal is to develop a sustainable, attractive and successful city. “We have a lot of programmes tied to that,” Nombulelo says. In 2009, the city signed a Responsible Tourism Charter with leading trade associations Federated Hospitality Association of South Africa (FEDHASA), the Southern Africa Tourism Services Association (SATSA), the South African Association for the Conference Industry (SAACI) and Cape Town Tourism. The city also adopted a Responsible Tourism Policy and Action Plan to achieve sustainability in managing tourism in Cape
Town. “Responsible tourism was a phrase coined in Cape Town in 2002, but we started all this as far back as 1996, and it is now widely used around the world,” Nombulelo concludes. “There is still a lot of work to do before Capetonians are truly living by the principles of responsible tourism and helping all visitors enjoy our destination as responsible travellers: we still have a long road to travel...........but it is a start!” Cape Town works in a way that “works for sustainability and that is through partnerships- public private partnerships”. Public spaces are regenerated,regenerated; development is people centred and focus on a safe environment in the inner city. Factor in stunning beauty and it is easy to see why this unique Southern African city is so popular. For more information visit www. responsiblecapetown.co.za END
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Bongani KhumALo
Tottenham’s latest signing shelved a career in high finance to take a chance on a football career.
IMAGES: TOTTENhAM hOTSPUR
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Bongani Khumalo SPORT
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afana Bafana star Bongani Khumalo joins Tottenham Hotspur in January – and hopes are high at Spurs that he is merely the first of many to benefit from its close partnership with Pretoria-based club Supersport United. Bongani, 25, captained Supersport United, which has been partnered with Spurs since 2007, to a record equalling third straight Premier Soccer League (PSL) championship last year. He joins the likes of Aaron Mokoena, Steven Pienaar, Benni McCarthy, Kagisho Dikgacoi and Davide Somma in England’s top football circles. Not a product of the Supersport Tottenham Hotspur Academy in South Africa, the ex-Tukkies player still has cause to be thankful for the close relationship between Supersport head coach Gavin Hunt and Academy Technical Director Eric Winstanley. “During the World Cup, Gavin, I and Ian Broomfield (the Spurs talent scout) were discussing that Spurs were looking for centrebacks. Gavin suggested Bongani even though he didn’t want to lose him, Ian went to have a look and because of our close ties he was able to go for a trial at Spurs and they were impressed,” says Winstanley. The experienced Englishman, who has coached in Africa, Barnsley and the Caribbean, joined the Academy in 2009 to pick out potential worldclass players. “Young players in South Africa have the raw talent and are technically very gifted but they need the Academy to hone their skills,” he says.
OVERSEAS COAChING He plans to bring more young players from the SA-based Academy over to London for topclass coaching. “The programme in South Africa is not as strong, partially because boys have to stay in school until they are 18 so they can only train part-time. In the UK boys can leave school at 16 so they can be full-time at the Academy.” He said the system was starting to bear fruit with a number of Academy players due to compete for places in the Supersport first team and the Academy being “within touching distance” of sending more players over to Spurs. “I expect four youngsters, between 15 and 16, to head over to the UK in September/ October to play with Spurs.” Spurs executive director and board member Donna Cullen says having Winstanley in South Africa had made a huge difference as “he knows what the Premier League needs,” although she stressed Spurs were not looking to “train Africa out of the player.”
I expect four youngsters, between 15 and 16, to head over to the UK in September/October to play with Spurs
CLOSE TIES
Cullen, who is English but grew up in South Africa, said Spurs has a close relationship with South Africa after touring in the 1960s – and after she took the team out in 2003 to support the SA World Cup bid and in 2006 to celebrate them winning it. “Danny Jordaan is a massive Spurs fan,” she said. Spurs came back from the 2003 trip with Mabizela (‘Old John’ Mbulelo) from Orlando Pirates, a signing that “didn’t quite work out.” Having watched players like Lucas Radebe, Pienaar and McCarthy she was keen when Stanley Matthews, Supersport United’s Director of Football asked if Spurs would www.southafricamag.com 15
TOP FLIGhT INVOLVEMENT Players between 15 to 18 will be considered for professional contracts, and the Academy staff were hoping to see a “lot more kids going straight to the Supersport First Team, being selected for Bafana Bafana and then heading for the Premier League.” She is proud that Spurs financed the construction of the Tottenham Hotspur orphan house in the SOS Children’s village in Rustenburg, North West Province – funded by monies received from players’ fines. Cullen says Spurs have found Supersport a good partner. “We know from traffic on our website that we have a good footprint in South Africa and one of the great things about our association with Supersport is that they broadcast across SA and Africa and we supply them with material,” she said. The club’s other South African connection is with Investec, which recently come onboard as a sponsor.
Young players in South Africa have the raw talent and are technically very gifted
be interested in building a relationship. “I just could not not see amazing talent coming out of South Africa,” she said. With Winstanley in his second year as Technical Director, a position that is paid for by Spurs, which also co-funds the Academy, she feels it is easier to track the youngsters. “A number of players interest us and will spend a week or two at our UK Academy.” The relationship between the clubs includes coaching, administration and even managment skills training. “We sometimes take the Supersport players to Europe to play – we had two or three playing in Switzerland at the beginning of the season last year. That helps them prepare for travel and life in a foreign country,” she said. Cullen said the Supersport-Spurs Academy looked after the boys’ schooling, training, nutrition and accommodation unlike in the UK where the players live out – with a vetted Spurs family – if their families live more than an hour away from the club. 16
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BRANDING EXERCISE Stanley Matthews, Director of Football at Supersport United, says the Spurs director is being unduly modest about Spurs’ popularity in Africa, it is closing the gap with Arsenal and Chelsea. “Teams that are seen to promote African talent are popular – Arsenal and Chelsea are miles ahead. Liverpool and Man U have fallen behind. I think we’ve got the vision to try and build the Spurs brand and our brand in Africa.” Matthews said Supersport, owned by a televison company with PSL broadcast rights throughout Africa, looked to Spurs for the international expertise and exposure that “we wouldn’t normally get from an African country point of view. The missing ingredient has been a player”.
Bongani Khumalo SPORT
While Khumalo hasn’t come through the Academy, Matthews said his elevation had been a great motivator. “He’s a fantastic young man and a wonderful role model on and off the field. I think he’s going to do well at Spurs and I hope he does. It’s going to be a catalyst for the next few years for a number of players to come through”. Matthews said the way things were going by 2012 more than half of Supersport’s first team squad would be from the Academy. “We want to open up opportunities for our youngsters. The PSL is probably the showcase league in Africa in terms of being
the most professional and most valuable in terms of television rights – its commercial value sits just outside the top ten in Europe. We get players from all over Africa coming to play in the SA Premier League and we also benefit when a SA player makes it like Steven Pienaar or hopefully like Bongani at Spurs. It will motivate the best of African talent to come down south as a springboard to Europe.” Donna Cullen summed up, “our long relationship has culminated in this. We have extended it too. If we find one or two players it would be fantastic – it’s wonderful to welcome players from South Africa”. END
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Something to shout about Suffering a World Cup hangover? Not looking forward to 2011? Fear not, for there is a lot for South Africans to look forward to next year, from two World Cups to an Oscar-contending film and the return of some shock-rappers.
WRITTEN BY Pierre de Villiers
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Looking to 2011 CULTURE
MUSIC They might be mortal enemies on the sports field but in the recording studio Australia and South Africa are combining beautifully thanks to Xavier Rudd & Inzintaba. The Aussie singer and South African bassist Tio Moloantoa and percussionist Andile Nqubezelo will be looking to build on the success of stunning album Koonyum Sun in 2011. To follow their progress visit http://www.xavierrudd.com If Die Antwoord have half the success this year they enjoyed in 2010, the shock-rappers will be in zef heaven. Ninja and Yolandi Visser are touring in Australia at the moment before settling down to work on a new album and, if rumours are true, an action figure range in Japan. See http://www.dieantwoord. com/ for more info. Electro-jazz duo Goldfish enthralled audiences in London in 2010 and will be looking to make a quick return to the capital this year. For upcoming gigs see http://www.goldfishlive.com/
SPORT Rugby Despite poor performances and a coach who only opens his mouth to swap his feet, the Springboks will still be one of the favourites to win the Rugby World Cup in New Zealand. For starters there’s the team’s astonishing record at rugby’s showpiece – played in four World Cups, won two of them. Also, after years of Super 14 rugby and Tri-Nations tests, playing conditions in New Zealand won’t faze South African players. There are some tricky selection and coaching issues. Should John Smit lead the team? Do talismatic but battle-scarred players like Victor Matfield, Schalk Burger and Bryan Habana still have one big season left in them? Is Patrick Lambie really the new Daniel Carter? All will be revealed in what is sure to be another roller-coaster ride for Bok supporters. The Rugby World Cup takes place in New Zealand from 9 September – 23 October. For more information see http://www.irb.com/ Cricket Watching the Proteas play in the World Cup should come with a ‘choking hazard’ warning. From Allan Donald’s run-out in 1999 to the rain-induced miscalculation in 2003, South Africa are infamous for fluffing their lines when it really counts. Even if Graeme Smith and his team get over their mental block at World
Cups, they face an uphill battle on the slow, turning wickets in India. On paper, though, the Proteas have the talent to go all the way. Hashim Amla is in sensational form while AB de Villiers did not win the ICC oneday player of the year award for nothing. If ever a team owed a country a result, it’s the Proteas. The Cricket World Cup takes place in India, Sri Lanka and Banglandesh between 19 February and 2 April. For more information see http://icc-cricket.yahoo.net/
Soccer After their heroics against France at the World Cup and a solid end to 2010, Bafana Bafana will be keen to continue the good form they are showing under new coach Pitso Mosimane and secure qualification for the 2012 African Cup of Nations. The team’s road to the tournament sees them playing Egypt, Niger and Sierra Leone between March and October. For information on Bafana Bafana see http://www.safa.net Tennis South African tennis has had little to cheer about in recent times. There are signs of a new purple patch, though, with Chani Scheepers and Kevin Anderson showing they have enough talent to cause a few upsets at major tournaments this year. Follow the progress of SA players at http://www.atpworldtour.com
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Looking to 2011 CULTURE
FILM After receiving a 10-minute standing ovation at last year’s Cannes film festival, South African film Life, Above All will try and woo the members of the Academy in 2011. As the Rainbow Nation’s official entry into the Best Foreign Film category for the 83rd Oscars, the coming-of-age drama can follow in the footsteps of Tsotsi and bring home a little golden man. Directed by Oliver Schmitz, Life Above All stars new-comer Khomotso Manyaka as a young girl fighting the fear and shame that has infected her community. Follow the road to the Oscars at http://oscar.go.com/ Spud
ETERNITY - Rikki Brest and Andre Frauenstein
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The boom in filmmaking in South Africa continues apace with Eternity, a Twilightlike vampire offering in cinemas this month. Andre Frauenstein plays a sensitive young bloodsucker who falls for human girl Jenny (Rikki Brest). Things become complicated when Jenny’s father produces a serum that will enable vampires to walk around during the day and war breaks out between bloodsucking clan leaders and a powerhungry upstart. Also in cinemas this year is Spud - Donovan Marsh’s big-screen adaptation of John van de Ruit’s book about a youngster’s experience in a KwaZulu-Natal boarding school – which stars John Cleese and supermodel-turned-actress Tanit Phoenix. Africa United, the charming tale of Rwandan youngsters travelling to the World Cup in South Africa is due to be released on DVD in 2011. Golden girl Charlize Theron returns to screens in Young Adult, about a divorced writer who visits her hometown to reconnect with an old boyfriend. END
The Lion King ENTERTAINMENT
THE
Lion King where Durbanites ‘strut their stuff’
Brown Lindiwe Mkhize as Rafiki in Disney’s The Lion King London Company. Photo by Catherine Ashmore ©Disney
The Lyceum Theatre’s Lion King still feels as fresh and soul-stirring as ever. Best of all the UK musical stars two of Durban’s finest.
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had seen only The Lion King film before venturing to the West End’s Lyceum Theatre to meet Andile Gumbi, 27, who plays Simba and ‘Brown’ Lindiwe Mkhize, 34, who plays Rafiki. Watching the musical I wept at times (I’m a bit of a sucker for musicals), surrounded by an audience of old, young and inbetween. What made it even more poignant was that I was watching two of the nicest Durbanites I’ve met strutting their stuff on the West End stage. www.southafricamag.com 21
Andile Gumbi as Simba in the London production of Disney’s ‘The Lion King’ Photos by Simon Turtle © Disney
Sarafina) company …he heard me singing in church. After that I headed to Joburg to do session work. That’s when I started auditioning for The Lion King, it took me seven years before I got taken. I did backing work in-between …
How do you see yourself? As a singer first but now that I can act, I have enjoying them both.
What is your ambition after The Lion King? I want to carry on but when I am done I would love to go back home and perhaps open a small business? AG: I want to go work in television, here or in SA.
What do you like about living in London? Lindiwe: In winter I love being cosy, its something we don’t have at home.
What advice would you give to South African youngsters? Andile: Don’t let the fact that you are from Africa hold you back! For instance Africans tend to think Hollywood is not for us – but there are successful Africans like Djimon Housou who did Blood Diamond.
Andile, how did you start off? I was at Durban University of Technology for my drama studies but dropped out when I got the part in the Lion King.
Do you see yourself as a singer or an actor? As an actor first but you never know, your singing career might take off …
And you Lindiwe? My last class was standard nine, then I joined Mbongeni Ngema’s (maker of 22
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What do you think of South Africa from here? Lindiwe: One thing about this country (UK); there is no thing about colour, about being black or white. Andile: Promise – one day we will get there.
How do you keep in touch with home? Andile: I Skype my mom. Lindiwe: I am looking after my mom’s kids, five of them so I phone them ALL the time. I have a son as well in Durban who is staying with my sister. …
The Lion King ENTERTAINMENT
WhEN ARE YOU GOING hOME AGAIN? Lindiwe: This month for two weeks. Andile: In Oct as my mom is turning 50 and I want to organise a big party.
WhEN DID YOU JOIN ThE CAST? LM: In May 2005 but I started in Amsterdam on The Lion King, went there for nine months and then auditioned and got the part of Rafiki in London. Andile: Initially I went touring in Australia, it was 2004, I was a Simba understudy, after Sydney and Melbourne we moved onto China for three months. I joined London in 2008 and met Lindiwe here.
LM: It’s huge, especially to be in The Lion King as its one of the best musicals. It was one of my dreams – to play a lead in a big West End musical. AG: It’s the equivalent of Broadway, it’s a big deal. Sometimes I tell people and they’re like ‘Oh my god.’
WhAT’S IT LIKE DAY AFTER DAY? Both: There’s a lot of pressure. LM: And you have to be an example to everyone. We represent Africa and also now the show too.
hOW DO YOU KEEP IT FRESh?
I want to carry hOW AMAZING ThAT YOU BOTh COME FROM on but when I am UMLAZI? DO PEOPLE done I would love ThERE KNOW? AG & LM: It doesn’t to go back home seem like it, when we go home no-body tries to interview us. and perhaps open a ARE OThER SOUTh small business AFRICANS IN ThE CAST?
AG: Yes, I think it is five boys and two girls. We were all cast in South Africa. The deal with Disney is that because a lot of the music is South African, there must be at least five South Africans in the cast. Duma ka Ndlovu’s company holds auditions every year.
WhAT LANGUAGES ARE IN ThE ShOW? AG: A mixture of Zulu, Sotho and Swahili –the show is set on the plains of the Serengeti…
ONE REVIEWER WROTE ThAT IS WASN’T PROPER ZULU? (Laughs from both) It is, we should know…
WhAT IS IT LIKE IN A WEST END ShOW?
NIGhT?
LM: It is important to rest and to enjoy it. If you’re using your voice a lot you have to take care of. AG: That’s true. The audience is different every day. They send you energy, you respond and it’s exciting.
APPARENTLY PEOPLE FROM DISNEY WATCh ThE ShOW EVERY
AG: People with a fresh eye check on the performers – especially for us with SA accents, people might struggle to hear or understand a certain word – and they will usually get in a dialect coach. It helps you.
WhAT DO YOU ThINK BEING SOUTh AFRICAN ADDS? Andile: Because it’s an African story it makes it a bit more real. I think I am the second South African Simba principal. One of the key scenes is between Simba and Rafiki and having two South Africans playing the parts makes it more powerful. Lindiwe: Our characters are African – that is why our show is so unique. eNd www.southafricamag.com 23
Harmony
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Harmony’s growth strategy is focused on building a leading international gold mining company through acquisitions, the development of organic growth projects and focused exploration.
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Harmony Gold FEATURE
G
old has been driving the South African economy for decades and we are the world’s number three gold producer. However, despite the fact gold mining remains an important sector for the economy, South African gold mines have come in for a lot of criticism of late and it is increasingly difficult to remain profitable. Harmony Gold is doing all it can to boost the profile of the industry and has been performing well. Its third quarter results made excellent reading - cash operating profit, for one, was up 49 percent. In FY10, Harmony produced 1.43 million ounces of gold, making it one of the world’s largest gold mining companies. “Harmony is doing ok,” says Graham Briggs, chief executive. “There are two ways of looking at performance from my point of view: One, are we on the right path, the right strategy, and have we achieved some of the strategic objectives? Two, and you see a lot of this of course in the press, is about the shortterm performance of a particular quarter or over the last six months. Production from our growth projects during the quarter was pleasing, reinforcing our pursuit of lower-cost, better quality assets, and taking us a step closer to achieving our production target of two million ounces by 2013.” The future price of electricity is making gold mining in South Africa a lot more difficult and increased electricity cost risk is one thing that comes out strongly in feasibility studies, Briggs says. “Deep, underground gold mines are a characteristic of the South Africa gold mining industry and you need a lot of power,” he explains. “Most of our production comes from within South Africa, so we have been exposed to high-profile external factors. Gold mining opportunities outside South Africa are more attractive because they involve shallower opencast mining or mechanised bulk mining that is safer. www.southafricamag.com 25
Harmony Gold FEATURE
“When you talk about the South Africa industry,” he adds, “there have been increasing cost pressures, declining grades and the rand has strengthened a lot. “All said, we are actually promising better grades in future. We’ve spent money on new assets and they are starting to deliver. We’re very confident of our South African assets and mines like Phakisa and Doornkop and Kusasalethu will generate significant net cash, and positive results.” Companies like Harmony, though, must dig deeper and look abroad for profits, he admits. “It is more expensive, but make no mistake, we are always very focused on trying to constrain cost increases and improve productivity.”
GROWTH PROJECTS Papua New Guinea (PNG) and specifically the Wafi-Golpu strike is big big news at Harmony. “Our partner there, Newcrest, is Australia’s biggest mining company. WafiGolpu is full of potential. The target has recently been upgraded to 30 million ounces of gold and the copper target has been raised from four million tons to eight million tons,” says Briggs. “I don’t think there’s any question that this looks remarkable. We continue to explore this deposit. There is definitely going to be an upgrade.”
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Significantly, he adds, Harmony and Newcrest already have experience in PNG at Hidden Valley, which is in the process of building up to full production. “The important thing about being in any country is knowledge of the country, knowledge of how to navigate various things including politics and landowners. Also, having people on the ground. We have been in PNG since 2003,” says Briggs. “You have to know what you’re doing, you have to have the right logistics and the right support. “Building Hidden Valley was quite a big struggle but at the same time, of course, it’s the first gold mine that has been built for many years in PNG,” he adds. Projected output for Hidden Valley is planned at about 280,000 ounces of gold per annum and probably around 3.5 million ounces of silver, Briggs says. “At the moment it’s got a life of 15 years. But that could change. When we actually did the feasibility study for this, the first feasibility study, it had a six and a half year life and only 2.6 million tons throughput. At the moment that has a throughput of 4.2 million tons. We continue to explore in that area. “What is important to stress is that WafiGolpu is considerably bigger than Hidden Valley. It would be producing copper, gold concentrate and probably producing around about 700,000 ounces of gold per annum. That’s a big deposit
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Harmony Gold FEATURE
and it has great potential. We continue with exploration because these deposits are often not a single deposit.” Wafi-Golpu could conceivably be the “gold find of the century” he says, and is a perfect example of “what we are trying to achieve here at Harmony.”
TURNING THE CORNER Harmony’s strategy of asset optimisation is tough – and well documented - but it is working. Yes, there have been short-term setbacks, but long-term goals are far more important, says Briggs. “Are we going well? We managed to pursue our strategic goals, with a number of corporate activities having been concluded during the year. Certain non-core assets were divested and shafts closed so that the management team can focus resources on growing, developing and operating its portfolio of core, quality assets. Safe, profitable ounces continue to be our focus.” Harmony has closed seven shafts in the last year and concluded a sale of assets agreement for Taung Gold to acquire the Evander No 6 shaft and Twistdraai areas in a R225 million cash transaction. Bids have been received for the takeover of some closed shafts, but Briggs says that the takeover of the shafts and the transfer of minerals rights is a lengthy process. Harmony also has to be sure that the company that acquires any asset is financially “sound”. “Generally, we were able to avoid retrenchments following these closures,” explains Briggs. “We’ve had surprisingly few compulsory retrenchments. We’ve had quite a few voluntary retrenchments and have been able to transfer jobs to other operations. “One important development and a recent success we’ve had, which is important in the context of what we are trying to achieve and do, is the Wits Gold transaction. Wits Gold has obtained a prospecting right over Harmony’s Merriespruit south area and we are now 13 percent shareholders of Wits Gold by virtue of the transaction. 30
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Jonrik is built on its relationships with both its clients and its employees. Without the support, dedication, empowerment and commitment of our employees, our services would be compromised. Our objective within the Training and Development Team is to address the needs and aspirations of our employees within the group and the community, in all areas where economically viable, by increasing their levels of skills to enable them to assume increased independence and responsibility. OUR OPERATIONS: • Tailor-made according to unique needs of our clients • Driven towards service excellence • Independent business units, empowering individuals • Training & Development/ Supporting Structures • Continuous feedback sessions (Client orientated) • Constant upgrading and improvement of services • Partnership Relationship with Clients and Unions
WITH JONRIK MINING YOU CAN NOT GO WRONG!!! “The Merriespruit South area and the Freegold option did not fit into Harmony’s portfolio, but the transactions were an exciting opportunity for Wits Gold and will unlock value for shareholders. “Generally, we have cleaned up our portfolio, done a lot around restructuring costs, and continue to do so. This is a great example of that. Our goal is to try to get value for the assets that are at zero value and in some cases negative value,” Briggs continues. “Our South African assets will generate sufficient cash to fund growth projects and we are very excited about the future.” eNd
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Huhtamaki: TAKING
PACKAGING f
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With blue chip clients like McDonalds and KfC, huhtamaki SA focuses on packaging for the food service industry.
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huhtamaki fEATURE
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uhtamaki is a world-leading manufacturer of consumer and specialty packaging. Over the years, it has reinvented itself and has changed considerably from the business Heikki Huhtamaki founded (Huhtamaki Industries) in 1920s Finland. Its dedication to customers, however, has never waivered. As Group CEO Jukka Moisio puts it: “Over the years our company has reinvented itself and the focus of our business has shifted. Our dedication to customers has however, always remained our top priority - partnership and cost-efficiency being our main assets.” “Huhtamaki has a presence in 33 countries around the world, employing 13,000 people,” says Richard Trickett, MD of Huhtamaki South Africa, explaining that, locally, as well as globally, the firm “strives to be the company of choice” by consistently providing customers with “unmatched expertise, operational excellence and innovative thinking.” He says one word accurately captures what Huhtamaki is all about, further. It is in tune with customers and trends, and always strives for better. “As a leading global supplier, Huhtamaki is in tune with the times, we have to be,” Trickett says. Huhtamaki’s South African history and future is filled with regeneration, innovation and solid development. Operating from manufacturing facilities in Springs, Epping and Atlantis, the main focus is “creating packaging for the foodservice industry”, providing sustainably developed packaging, carrying some of the world’s most renowned brands such as worldwide blue chip clients KFC and McDonalds. “We are a one-stop shop to quick service restaurants, beverage vendors and caterers, and work with both the largest multinational organisations and smaller, local players,” says Trickett. A varied product range enables all types of food service operators to have “quality packaging” that supports “their needs” and offers “good value”, he adds. www.southafricamag.com 33
huhtamaki fEATURE
EXTENSIVE RANGE
STRENGThENING MARKET POSITION
Huhtamaki SA is divided into three divisions: Rigid packaging, Flexible packaging and Moulded Fibre packaging. “Our products play a vital role in the food and beverage sector and we have a wide range of cups, containers and lid forming technologies, offering a variety of shapes and sizes for a wide range of products such as convenience cups and tubs, hot and cold drink cups and lids, ” says Trickett. “On top of that, we can create custom solutions. “We can create completely new products or can revive interest in an established brand. “We are a leading specialist consumer packaging company that contributes to its customers success by helping them sell more,” he adds.
According to Trickett, in September 2008, the Huhtamaki group – from its headquarters in Finland – announced its intention to focus on packaging operations where it has a “competitive advantage and good market positions”. “Where do we have good positions? Definitely in moulded fibre products, flexible packaging, and the food-service industry,” he says. “As a group we decided to focus on operations in which we have strong know-how and technology platforms and business concepts that will allow Huhtamaki a continued competitive advantage.” This meant a complete review of operations and as a result Huhtamaki South Africa divested itself of ‘non-core’ business, namely
Our products play a vital role in the food and beverage sector
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huhtamaki fEATURE
its thin-wall injection moulding operation based at Roodekop in Gauteng. “We sold it to Polyoak Packaging,” says Trickett. “It fitted their strategy well and was an excellent purchase for them, adding to their portfolio. They purchased the business as going concern and the sale has ensured that the business received the necessary support to go from strength to strength.” This wasn’t the only ‘non-core’ asset Huhtamaki subjected to review. “We had a barrier film business, which was also noncore,” Trickett adds. “We did try to sell it as a going concern, but unfortunately the prices we were offered were not attractive enough. We had a couple of options: sell the business at a reasonable price to people who wanted to continue running it on our site or shut the business down and move out of offsite warehousing, which costs us a considerable amount of money, and convert that plant space – some 8,000sqm – into storage space. “We ended up taking the second option, as it was strategically the better option.” Such measures, and the focus on packaging operations where it has a “competitive advantage and good market positions”, has enabled Huhtamaki to compete, and survive, in a very tough trading environment. “We are now more focused and the group is certainly showing a willingness to invest in its core technologies,” Trickett says. “With
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thoughts on the SA market, the World Cup has come and gone,” he continues. “There were high expectations of demand during that period, some of which didn’t materialise for many parts of the economy. For all of us supplying into the quick service restaurant side of the market, the one thing you couldn’t afford to do, for anybody in the supply chain, was run out of product. Everybody made sure they had stock for the upbeat scenario. Eventual demand, however, was only slightly up on the previous year. “Since the World Cup there has been a little bit of a hangover. Certainly consumers in SA continue to be cash-strapped. We are now moving into the peak season, summer is starting and Christmas is around the corner. There will be an increase in demand. I don’t think it will be much better than last year, but it is going to be what it is – there isn’t much we can do about it.” Huhtamaki is currently stockpiling in order to meet that increased demand, Trickett says. “The stock build is going well. Our big customers remain positive, although over the last six months or so they have certainly not been happy with the growth – there has been growth but it has been well below their expectations. We are prepared, we do run our facilities right up until just before Christmas and then we shutdown for two weeks and start up again in the New Year. The big challenge in December is that our
customers are all still serving quick service restaurant meals and there are only two delivery weeks; it is a very busy time. You have to get a normal month’s sales out in half the time. That is always a challenge.” Customers are increasingly demanding product Just-In-Time, he adds: “Everybody is looking at cash flow with greater scrutiny. We see people delaying orders, there is a trend to get product JIT, customers want environmentally friendly product, and there are many other trends emerging right across the supply chain.” By taking a JIT approach to inventory and product handling, companies can often cut costs significantly, he says. “Growth has been slow to return,” Trickett concludes. “I remain quietly optimistic. I think that we are going through a tough period. There is going to be growth, but it will be muted, gradual. We will not see the sort of double-digit growth we were seeing three years ago.” eNd www.southafricamag.com 37
ALL JOY fOODS:
REC I PE fOR SUCCESS
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All Joy Foods fEATURE
marci Pather, founder and CEO of All Joy foods Ltd, speaks to Jane Bordenave about the importance of local knowledge and innovative processes in the manufacture of products.
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ll Joy Foods Ltd is the second largest producer of sauces and dressings in South Africa. It was formed 23 years ago by food technologist and entrepreneur Marci Pather who believed that “South Africans should have access to quality tomato sauce at affordable prices” - something he did not have growing up. Determined to offer this “luxury” to all, All Joy uses “local knowledge and local ingredients in innovative ways” to produce “affordable luxuries for the mass market”. “All Joy focuses on sauces and dressings predominantly, that cover a wide range of tastes in the South African market,” says Pather. “Under the All Joy brand we have many different types of sauce-based products, covering everything from Italian cuisine through to Asian cooking. “Our products come in various packaging sizes,” adds Pather, “which is very important. One of our best sellers is a two-litre bottle of tomato sauce. While this may seem excessive to people looking in, from outside the country, South Africa is still very community based and groups of people will come together to buy ‘luxury’ products like sauce and subsequently share it.” All Joy, he continues, also produces individual servings of condiments ranging in sizes from 8ml or12ml to 50ml, such as chilli sauce. “It is not practical to take a large tub of sauce out to the beach, for example, but these smaller volume packets enable consumers to enjoy our products away from the dining table,” Pather says.
PRODUCING AND MANUFACTURING MORE EFFICIENTLY This kind of innovation is very important to the Johannesburg-based food producer and is key in helping maintain competitiveness in a market that is “dominated by large, multinational sauce and snack food manufacturers”. www.southafricamag.com 39
All Joy Foods FEATURE
“There are three ways in which All Joy uses innovative practice to differentiate itself from these competitors: Local knowledge, its manufacturing process and flexible packaging,” says Pather. “We use local knowledge to identify homegrown tastes and opportunities; this is something that really does set us apart,” he says. “You have to understand the local market and, as an organically grown, black South African business, we are at an advantage, which we have for example, put to use in developing of our large volume products. “We also know that there are many consumers who don’t use sauces in their cooking or with their meals. This can present a challenge however we have addressed this, by using local ingredients and making sauces that suit local tastes and cuisine.” The Veri Peri sauce range is a case in point. All Joy has created a recipe combining a fusion of South African, Mozambique and
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Portuguese tastes indicative of South Africa’s multicultural palette. “The use of indigenous ingredients like African bird eye chilli, a unique recipe and Ndebele inspired design creates an Afro-centric product that honours local tastes and intrigues an international market,” says Pather.
VALUE MAKES FRIENDS, QUALITY KEEPS THEM All Joy began producing condiments and dressings, primarily for the catering and hotel industries and has, over the years, maintained the sense of “value makes friends and quality keeps them”. All Joy is currently expanding globally and looking positively towards the future. But what makes it a success? “There are many factors, for example our production methods and innovative use of packaging go hand in hand,” says Pather. “We try to be as high up the supply chain as possible and focus mainly on the last 100 metres before
Robo Engineering cc, commenced their business in 2008 and is offering the following services: • Design, fabrication, engineering workshop, project management, plant automation and turnkey projects for the Food and Beverage industry. • Suppliers of new in line Filling machines, gear pump, gravity and piston fillers, ink jet Coders, labelling machines and all types of cappers, conveyors, accumulation and packing tables etc. • We also specialize in the refurbishing and upgrading of old machines. • Consumable suppliers for all belts, bearings, seals, springs, sensors, ink jet printer consumables etc for the above mentioned machines as well as Stainless steel fasteners. • Customer references available on request. • We deliver services to the South African market as well as the African countries. Our Company serves all types of customers, from the largest to the smallest. Every product is tailor-made to suit the customers needs. Payment terms can be arranged.
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All Joy Foods FEATURE
consumption. We purchase concentrated ingredients, such as tomato paste, then add water and sugar, ready for it to go onto supermarket shelves. “By hydrating at the point of entry in this way, we are able to use more innovative packaging,” he continues. “Competitors often ship their products to South Africa readymade and in order to do this, they use hard, heavy plastic packaging to protect the product during transit. Because the transit times and distances for our finished products are much shorter compared to most other manufacturers, we are able to use lighter packaging that is more practical for the consumer. “Many of the people who buy our products will use public transport, so our light packaging makes it easier for them to carry their purchases home, which results ultimately in costumer satisfaction, which is an important factor to us.”
This method of production and packaging allows for reduced energy consumption, which reduces the cost to the company, consumer and the environment. “Our goal is to strive to be as environmentally friendly and socially responsible as possible while keeping our business as sustainable as we can,” says Pather. “We keep a close eye on waste management and waste reduction, as well as recycling. We also try to run our machines as long as possible, which reduces the number of chemicals we release into the environment during the cleaning process.” Keeping its staff well trained is one of the key ways in which All Joy maintains its high levels of satisfaction amongst customers and end consumers. This keeps its manufacturing plant “even more efficient and effective”. “We place great importance on training and continuous professional development,” Pather says. “Everyone receives training, whether it is maintaining IT skills as technology advances, or basic food training, or continued professional training for our four food technologists. “As a company, we have to be consumer oriented and training is part of that. If staff are not properly trained then accidents will occur, which can damage customer relations – one bad experience and you can lose 50 percent of your client base, so training is absolutely key.”
ENORMOUS POTENTIAL All Joy’s first product was tomato sauce, still the company’s leading product. As more products were added to All Joy’s range, the company used its flexibility to develop new products according to the changing demands of consumers. But when it comes to the future, the company is going to “stay true to its roots”. “We are already a leading BEE employer; 70 percent of our shareholders, 80 percent of our executive staff and 70 percent of our management are black,” says Pather. 42
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“Additionally 70 percent of our general staff are black women. We want to take this forward and become the leading organically grown black business in South Africa. “We will look to diversify our product range take our experience and our brands into other food categories as well as sauces. “We are also very seriously examining the prospect of moving outside of South Africa, into other countries by selling spice packs to partners to continue the point of entry hydration process.” This is never easy, but Pather is confident. “We feel we have a winning formula, combining local knowledge and indigenous ingredients with innovative production and packaging methods, which we can successfully transplant elsewhere. We also feel that working in this way can produce new opportunities. “We want consumers, whether they are in South Africa or elsewhere on the continent, to have access to good quality produce that can improve their lives.” END
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value
Adding
to consumers’ lives Oil giant BP is committed to SA and adding value to consumers’ lives, while developing cleaner fuels.
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BP Africa fEATURE
B
P is the second biggest integrated energy company in the world and its history in South Africa reaches back nearly 102 years, where it has consistently been a leader in terms of direct investment and wealth creation. “BP Southern Africa engages in refining and marketing of fuels and lubricants,” Glenda Zvenyika, BP Southern Africa’s marketing communications manager, tells South Africa Magazine. BP is committed to South Africa, she says. “It is important to BP to add value to consumers’ lives.”
The launch of the centre is part of our long-term investment strategy into the country, which we view as a key growth market
© BP p.l.c.
She went onto explain how the global merger with Castrol in 2000 has made an enormous impact on BP’s lubricants business in Africa and how BP is today a world leader in the development of cleaner fuels and renewable energy, as well as the world’s largest producer and user of photovoltaic solar panels. It is also pioneering technologies for the hydrocarbons in the production of cleaner power whilst employing the latest technology to minimise carbon emissions in hydrocarbon exploration and production. A new R40 million fuel technology centre in Johannesburg, she adds, is developing cleaner fuels for the South African market. “The new fuel technology centre will enhance www.southafricamag.com 45
BP Africa fEATURE
BP’s ability to provide differentiated fuels in South Africa,” Sipho Maseko, CEO of BP Africa, explains. “Our R40 million investment in a fuel technology centre in Johannesburg demonstrates the company’s commitment to South Africa.” It is expected that the centre will further boost the company’s ability to provide differentiated fuels in the South African market. “The launch of the centre is part of our long-term investment strategy into the country, which we view as a key growth market,” Maseko says. “Over the past year alone, BP has spent more than R500 million on growing its forecourt infrastructure, expanding
fuel delivery capacity and optimising refining in the country.” The company employs about 2,000 people in the South Africa and has a strong forecourt network of over 600 service stations. South Africa is very important to the BP group and is one of BP’s best performing markets. “The centre is one of only four in the world belonging to BP,” Maseko says. “We want South African consumers to have access to BP’s best available fuel technology, and the centre will ensure that the fuels developed for the local market remain unparalleled in quality and performance.” The centre will operate under a similar model
The new fuel technology centre will enhance BP’s ability to provide differentiated fuels in South Africa
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BP Africa fEATURE
CEO PROFILE to those in Germany and the US, focusing on quality assurance, technical service and marketing support for the local market. The facility will also play an important role in the next phase of SA’s cleaner fuels agenda.
ASSET SALE As it attempts to position itself for the future, BP recently confirmed a $296 million deal through which it would sell its fuels marketing businesses in Namibia, Botswana and Zambia to Puma Energy, as well as its 50 percent interest in each of BP Malawi and Tanzania. “Puma Energy has agreed to pay BP a total of $296 48
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NAME: Sipho Maseko POSITION: CEO of BP Africa
AGE: 41 ABOUT:
Sipho Maseko is CEO of oil company BP Africa. He previously held the positions of COO and deputy CEO within the company. He joined the BP in 1997 after stints with Werksmans Attorneys and the Financial Services Board, where he worked in financial markets. He has since held various positions within BP, including those of executive assistant to the group vice-president: refining and marketing. Maseko sits on the boards of BP SA, BP/Shell Zimbabwe and the Centre for Development Enterprise. He also holds a seat on the board of Shell and BP SA Petrochemical Refineries, Southern Africa’s largest crude oil refinery. He has a BA and an LLB from the University of the Witwatersrand.
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BUILDING AND RENOVATIONS - MAINTENANCE SITE HARDENING - MERCHANDISING EST 1946 Proudly serving BPSA/Africa for over 50 years Through 4 generations of the Brocco Family B BBEE Accreditation: Level 3
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YEARS
BP Africa fEATURE
Cutting-edge Fuels Technology Centre situated in Johannesburg, South Africa, one of only four in the world
million in cash, subject to certain post-completion price adjustments,” a BP statement released in November said. “The decision to divest these businesses, which was first announced by BP in March 2010, followed a strategic review of BP’s southern African refining and marketing businesses. “The sales do not include BP’s refining and marketing businesses in Mozambique or South Africa,” the statement added. Puma Energy has operations in over 25 countries, including several in sub-Saharan Africa. 50
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The decision to divest these businesses, which was first announced by BP in March 2010, followed a strategic review of BP’s southern African refining and marketing businesses
Angola’s State-owned petroleum company, Sonangol, will purchase a 10 percent stake in the acquired businesses. Puma Energy’s chairman Pierre Eladari said: “This deal marks a significant milestone in the growth of our business, positioning Puma Energy as one of the largest independent downstream companies operating and investing in the region today. “Among the recent divestments by the majors in this region, we targeted the BP portfolio for the outstanding quality of its staff and assets, its key account customer base, and
A Quality Empowered Quantity Surveying Consultancy The company was established in 1986. Our Head Office is in Gauteng province (Pretoria) from where it provides services to clients throughout Africa. The company is managed by a multi cultural team of professionals with a 30 years experience in quantity surveying. We provide services to public as well as private sectors. The company is affiliated to ASAQS (Association of South African Quantity Surveyors) and SACQS (South African Council of Quantity Surveyors). 1239 Cobham Drive, Queenswood Street Pretoria, P O Box 12749 Queenswood 0121 Tel: 0861 777 272 Fax: (012) 333 8357 www.qsconsult.co.za
TRANS AFRICAN CONSULTING ENGINEERS (PTY) LTD
53 Kirby Beller Rd Glenvista 2091 e-mail: tace@mweb.co.za
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Tel: +27 11 217 7300 www.ckr.co.za 1st Floor, Shanghai House , 52 Wierda Road West, Wierda Valley, Sandton, 2196 Branches: Cape Town - Durban - Pretoria - Dubai
ELECTRICAL AND ELECTRONIC SERVICES MECHANICAL AND WET SERVICES
BP Africa fEATURE
We want South African consumers to have access to BP’s best available fuel technology, and the centre will ensure that the fuels developed for the local market remain unparalleled in quality and performance
for the strategic fit with our existing businesses in Mozambique, the Democratic Republic of Congo and Angola. As such, I am very pleased to have been able to conclude this deal with BP alongside our partners, Sonangol. “With full coverage of the SADC region, strong market share in each country, and over 450,000m3 of strategic fuel storage capacity under our operatorship, we now offer our customers and partners unrivalled security of supply and access to the regional 52
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marketplace. We believe this, together with our strategic alliance with Castrol, will be a strong driver of growth in our business over the medium-term.” Puma Energy will acquire all of BP’s interests in BP Namibia (100 percent share), BP Botswana (100 percent), BP Zambia (75 percent), BP Malawi (50 percent), and BP Tanzania (50 percent). The sale in each country is subject to different regulatory approvals, although
SECURING DEVELOpMENT As one of the leading retail surveillance company’s in South Africa Guerilla CCTV understands the special security needs of our customers and strives to provide them with the highest quality products and services to suite their individual needs. GUERILLA CCTV is at the forefront of the closed circuit television industry in the petroleum and FMCG industry providing retailers and owners with customized solutions designed to assist them in having better control over the management of their business. Our knowledge, experience and innovation in the CCTV industry ensures that we will satisfy the highest customer expectations. We pride ourselves on helping our customers find the right solution to suit their needs
DELIVERING CUSTOMER VALUE Guerilla CCTV is differentiated in the market place because we focus on the creation of value for our customers. We believe value is created by providing customized security solutions through our new product developments and improvements When you deal with Guerilla CCTV you are guaranteed the highest level of service with high quality products and service that we stand behind.
PROUD TO SUPPORT BP
BP Africa fEATURE
it is expected that sale of BP Botswana will be complete in 2010 with completion in the other countries to take place in 2011. The newly acquired businesses will add 188 fuel service stations, 11 fuel storage terminals, a range of mining key accounts, and an aviation fuel business with a presence at 22 airports to the Puma Energy portfolio. “The decision to divest these businesses followed a strategic review of BP’s southern African refining and marketing businesses,” says Maseko.
It is important to BP to add value to consumers’ lives “With the experience and existing businesses of their owners in the region and elsewhere, we believe that Puma Energy should be able to build on these good assets and grow the businesses further in line with the strong economic outlook for the area and in the best interests of all key stakeholders.” The BP Africa region consists of the company’s downstream operations in Namibia, Botswana, Mozambique, South Africa, Tanzania, Malawi and Zambia. In addition, the company is engaged in oil and gas exploration activities in Angola, Algeria, Egypt and Libya. Downstream infrastructure includes some 29 depots and terminals, more than 800 retail sites and the largest refinery in the region co-owned with Shell. BP was voted SA’s top petroleum brand for the 10th consecutive year in the annual Sunday Times Top Brands survey. eNd 54
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OGILVY CAPE TOWN 32418/E
Volkswagen Racing recommends
Some said we’d never win five times in a row. They were right.
Six consecutive wins for Team BP Volkswagen Racing. A first place finish in this year’s National Rally Championships brings our tally to an incredible six National Rally Championships in a row. We are proud to congratulate Enzo Kuun and Guy Hodgson for putting us on top of the podium. Proving, yet again, Volkswagen’s unrivalled performance and reliability. Congratulations to Team BP Volkswagen Racing and here’s to many more victories.
National Rally Champions 2005, 2006, 2007, 2008, 2009 & 2010.
PRASA: KEEP oN
RRRRRU U U U UN N N N NN N N N NIIIIN IN N N NGGGGG
South Africa Magazine looks at PRASA and the steps it is taking to revive train travel in South Africa.
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The Passenger Rail Agency of SA fEATURE
T
ravelling by train in South Africa is exciting, always interesting, and the view, well the view is spectacular. I have travelled over almost all the main lines, from Cape Town to Johannesburg, from Cape Town to Port Elizabeth and East London, and Johannesburg to Durban. Whatever you may think of our rail network there is no denying its vast scale. It is the biggest (and best) on the African continent and is a “crucial engine” for economic growth and social development. According to Government it is also a key contributor to South Africa’s “competitiveness in global markets”. Many steps have been taken in recent years to revive train travel as a viable public transport option. It led to the launch of the Passenger Rail Agency of SA (PRASA) in March last year. It was heralded as “a new era in passenger rail travel” and was tasked with effectively developing and managing “rail and related transport infrastructure, to provide efficient rail and road based passenger transport services within, to and from urban and rural areas.” Today, Metrorail, Shosholoza Meyl, Autopax and Intersite Property Management Services, formerly under South African Rail Commuter Corporation (SARCC) and Transnet, are now all part of PRASA, offering integrated transport services that prioritise customer needs while leading government efforts to transform public transport and provide better mobility and access in pursuit for a better life for all. Between 2007 and 2010, Government invested over R25 billion into PRASA, which was used as part of its stabilisation and turnaround strategies. “Our five year vision is to become the number one public transport operators in
high-volume corridors in terms of market share and to self fund approximately 50 percent of operational costs,” says Lucky Montana, Group CEO for PRASA. “PRASA has already started to implement its new five-year strategic focus as approved by the Board, transforming PRASA into a commercially-viable entity that will become the number one public transport operator in key high-volume passenger corridors in South Africa by 2015. “PRASA is already in the process of radically changing its business model, the nature of its operations, reviewing its funding model and undertaking a major technology upgrade. We are implementing a radical turnaround plan to ensure that the financial position of the Group is strengthened over the next five years in order to fulfil our government mandate of being the backbone of public transportation,” Montana adds. As part of the New Strategy, PRASA will implement the following: Recapitalise PRASA through an unprecedented programme of asset restructuring. Balance Sheet Restructuring exercise, revalue key commercial assets and find the most appropriate home in Intersite. Consolidate Shosholoza Meyl operations with commuter rail operations (Metrorail) under a single PRASA Rail Division as well as undertake a review of long-distance passenger services due to the funding shortfall and poor levels of reliability in Shosholoza Meyl services due to difficulties regarding access to the Transnet-owned network. Focus on delivering high-quality, reliable transport services in the following highvolume, priority corridors: Naledi – Johannesburg, Mabopane –
We are implementing a radical turnaround plan
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The Passenger Rail Agency of SA FEATURE
Pretoria, Mamelodi – Pretoria, Pretoria – Olifansfontein – Johannesburg, KwaMashu – Durban – Umlazi, Wellington – Bellville – Cape Town, Khayelitsha/Michell’s Plain – Phillippi – Cape Town, Simonstown – Cape Town. Continue with the programme for the upgrade of existing infrastructure and modernisation through the acquisition of new trains, signalling upgrade and network expansion projects such as the Bara-Rail Link, Motherwell Rail Link, Bridge City Rail Link, Mamelodi Rail Expansion and the High-Speed Rail Projects. “Strengthening the Balance Sheet and improving the financial position of the Group will be the single-most important focus of the Board and Management team in the period ahead,” Montana says.
SHOSHOLOZA MEYL TROUBLES The transfer of Shosholoza Meyl from Transnet to PRASA on the 1st of April 2009 along with a funding shortfall of R1 billion were part of the major challenges PRASA faced in 2009/10. It remains a huge challenge. “PRASA took serious strain, as the extent and depth of the economic downturn became 58
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evident in declining levels of patronage and revenues. Our core customer base of Metrorail and Shosholoza Meyl was hit hard by the difficult economic conditions and the resultant job losses. Furthermore, we had to carry huge increases in energy, insurance, security costs as well as huge maintenance costs,” says Montana. Shosholoza Meyl has only recently started running again after a three-month dispute with the state-owned Transnet saw its services suspended. “Shosholoza Meyl... announces the re-instatement of its train service and the reviewed schedule which will be fully implemented end of November 2010,” PRASA said in a statement. Shosholoza Meyl head Paul Zikhali added that, “In the past weeks we had to reduce a number of our trains due to, amongst others, the unreliability of locomotives which inconvenienced our passengers to a large extent. We managed to refocus our services in response to the identified customer demands. The reviewed schedule offers services to all corridors maximising capacity on all trains to ensure that no train runs empty.”
NALEDI RAIL ENGINEERING TRAINED TO ENGINEER Despite being the new kid on the railway engineering block, having been in operation for just over two years, Naledi Rail Engineering offers its clients decades of combined experience and a wide range of specialised industry skills that meet all their needs, packaged with a refreshing approach to our trade, customers, and stakeholders. Further, we have already been granted ISO9001:2008 accreditation, so our credentials are assured. One of our primary areas of expertise is Rolling Stock. We concentrate on General Overhauls (GO) (stripping/ mechanical/electrical/painting) to 5M2A motor and trailer coaches, so extending the lifespan of the fleet. Here, focus is on safety, reliability, and cost; focusing on technology, lifecycle management, efficiency, and effectiveness. In addition, we understand the value in skills capacity building, particularly in this niched arena, and we have created an onsite academy to train and improve the skills of potential and active artisans in this field. We fully support the government’s socio-economic programme, and are committed to promoting skills transfer, individual capacity building, professionalism, job creation, etc. We will be delighted to show you first hand our culture of warm, ongoing relationships, and our offerings of innovation, quality, competitive pricing, and service delivery.
CONTACT US: POSTAL ADDRESS: BOX 60131 LANGLAAGTE, 2102 JOHANNESBURG STREET ADDRESS: 3 NEWCLARE ROAD LANGLAAGTE JOHANNESBURG 2092
Our Services NRE focuses on value added activities within a variety of areas of operation: Rolling stock Refurbishment. Advisory Services In our advisory role we offer an amalgamation of expertise from across all the traditional business divisions of rail engineering and related services: • Rail operations and management; • Rolling stock general overhaul and upgrades; • Rolling stock design; • Rail risk identification and assessment; Our areas of specialisation within this arena are: Conducting general overhauls on motor coaches and plain trailer coaches, Minor repairs to all types of coaches, Fuselage rebuilding, Side and roof panelling, Electrical Wiring to (HT and LT) circuits , Micro modification, Master controller, Brake equipment, Bogie refurbishment.
TELEPHONE: 011 830 1470 FAX: 011 830 1472
AN ISO ACCREDITED COMPANY
www.naledirail.co.za
The Passenger Rail Agency of SA fEATURE
PRASA suspended the Shosholoza Meyl service on August 13. While Transnet accused PRASA of owing it around R1.3 billion, PRASA accused Transnet of charging too much and doing a poor job in maintaining its locomotives. PRASA says it had “inherited from Transnet a business that was poorlymanaged, neglected and whose financial management systems and internal controls were non-existent and certainly did not meet acceptable record keeping principles”. “The funding shortfall for Shosholoza Meyl, which was transferred from Transnet into PRASA on 1 April 2009 was R558 million,” says Montana. “Shosholoza Meyl requires R1.4 billion per annum to run the operation, however only R500 million was allocated by Government, and this allocation has since been reduced to R450million for the 2010/11 financial year, and no allocation has been provided for 2011 and beyond. The funding shortfall for the operations of Shosholoza Meyl had to be met by PRASA, which also assumed huge liabilities related to Shosholoza Meyl’s pension, medical cover and payroll.”
NOT ThE ONLY ChALLENGE As you may have guessed, PRASA has to deal with and tackle a lot. A funding shortfall of R1 billion impacted severely on its operations during 2009/10. An allocation of R210 million from the PTIS did not materialise, even though PRASA had already committed the funds for station and infrastructure upgrade projects. A fare increase of 10 percent was not approved. To meet the funding shortfall, PRASA had to dip into its own reserves. This could result in major long-term difficulties and it is against this background that the PRASA Board and Executive Management team developed a new strategy aimed at strengthening the PRASA Balance Sheet and recapitalising the business. 60
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INTeRNeT SoLuTIoNS
Internet Solutions (IS) has been the incumbent service provider of WAN and Internet services to PRASA for the past ten years. The partnership extends back to 1999 when MetroRail was one of the first clients deployed onto a Frame-Relay VPN solution in South Africa. Over the years, as technology trends changed from traditional Frame-Relay VPN technologies to newer MPLS solutions that provided a seamless converged platform for data and voice, MetroRail was one of the earlier adopters to be transitioned onto MPLS. In 2009 IS was awarded the tender by PRASA to provide MPLS services to subsidiaries such as Intersite Properties, Autopax, Shosholoza Meyl and MetroRail. The MPLS network is suitably positioned to provide autonomous network performance for each of the subsidiaries within PRASA over a common platform and is the fundamental building block for future business requirements regarding convergence and cloud computing. As Government structures have changed, placing greater focus on service delivery, it has become more important for Government Service Providers to provide efficient service that enables Government to meet its stated mandate. Telecommunications is playing an important role as one of the drivers of efficient service delivery. IS’s public sector division gives National, Provincial and Local Government, including State Owned Enterprises, the right focus and attention from both an interactive and supportive service delivery perspective, and is best positioned to deliver real tangible value to Government based on credible success in business.
Hello World 3181
WHAT IF THINKING THE UNTHINKABLE WAS ONLY THE START? WHERE ACHIEVING THE UNIMAGINABLE WAS ONLY A MATTER OF TIME.
When we launched South Africa’s first Virtual Private Network, we made it possible to instantly be anywhere in the country. When we linked our network to Africa’s fiber optic cables, we made it possible to be anywhere in the world. For the last 17 years we’ve been making the impossible happen. To ever change that would be unthinkable.
www.is.co.za
IS_117.5mmX170mm_FloatingMan.indd 1
But there have been successes, like the successful delivery of transport services during the 2010 FIFA World Cup, and PRASA successfully concluded the stabilisation phase of its Turn-Around Strategy for the period 1 April 2007 to 31 March 2010, while the National Station Improvement Programme was executed at great pace, with 111 stations completed by the end of 2009/10. It also achieved the target of 2000 upgraded coaches by 31 March 2010.
A NEW FLEET “PRASA needs to replace its rolling stock, among other equipment and infrastructure, as they fast approach the end of their useful lives,” Montana adds. “PRASA has identified the need to recapitalise its fleet over the next 18 years. A total investment of over R98 billion will be required for new and refurbished coaches and locomotives alone.” According to Montana, overcrowding would only get worse if PRASA did not get a new fleet.
2010/12/13 5:04 PM
The ambitious Rail Investment Programme, which aims to introduce new rail stock and technology into PRASA over the next two decades, is an absolute necessity, he says. Moving to standard gauge will also be of key importance in new and stand-alone rail applications that are being planned, in order to benefit from the full spectrum of a systematic approach to infrastructure modernisation. PRASA has Government support on this – Government views the upgrade as “important for the creation of sustainable jobs and growth of the economy”. The Department of Transport is also working on a rail development plan that focuses on Urban Transit Systems, Long Distance Transit Systems, Key Strategic Freight Corridors and Rural Access and Mobility. The positive legacy PRASA is in the process of delivering in the passenger rail industry will not only revolutionise travel as we know it, but by its sheer longevity, it also will leave a lasting legacy for future South Africans. eNd
TURNED-oU T
Any South African man who cares how he looks will know he can trust John Craig, a retail chain that truly puts the customer first: MD Lily moreira outlined her values and strategy to John o’hanlon. 62
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John Craig fEATURE
S
outh Africa’s transition from a divided society to one that provides an international model for integration is nowhere more clearly illustrated than in the business world. Initiatives like Black Economic Empowerment have been a valuable antidote to any lingering reluctance to embrace the new culture. But companies that were already swimming against the tide in the old days had a distinct advantage when the tide turned. John Craig is such a company. Founded 70 years ago and with its origins as a Jewish, family-run men’s outfitter it never saw the colour of its customers and would offer deferred payment terms without discrimination at a time when that would have been unthinkable for any but the privileged. A lot has changed since those days but the goodwill and loyalty that John Craig built-up in those days has been carefully nurtured. It is, says MD Lily Moreira, a niche player but its niche is large and significant – and it is growing steadily. John Craig is still a specialist in men’s clothing and footwear. It has 56 shops throughout South Africa (with the exception of the West Cape) and it caters for a mainstream market. This means it competes neither with the cheap clothing sheds at the bottom end of the market nor the high fashion boutiques favoured by the wealthy. A typical customer would be a man over 30, with a good career and all the aspirations that go with the expanding South African middle class, among whom incomes have trebled in the last decade. He will probably have a growing family and the responsibility of a house, so these factors will limit his disposable income, but he needs to maintain
his image socially and at work. ‘If you want to get ahead get a hat’ worked for Dunn & Co in another place at another time: John Craig doesn’t sell many hats, but you get the picture. These customers are comfortable with John Craig. “Our latest market survey came back with a number of key words people associate with our name: trust; loyalty; integrity; sincerity; stylish; quality; exclusivity – these all came up constantly,” says Moreira. “I don’t take any credit for these values – they were all there long before we came on the scene – but we made it our business to preserve them and we seem to be doing a good job!” It was in 2000 that Moreira and her management team took over the company in a management buyout. The company was by then in the hands of the industrial group Waco International, and clearly a non-core asset as far as they were concerned. John Craig had struggled to make any profits in the preceding couple of years and was in need of restructuring – that it could be successfully turned round was clear to the incumbent management but Waco had no strategic incentive to support that and was happy to divest. Having purchased the assets with the backing of a private investor (as one would suppose the banks were put off by the risk historical results were not encouraging) they set about rationalising the chain, starting by closing loss-making outlets that had been a drain on cash flow. “We thought there was a good opportunity to set the business on a sound footing but that it needed to be consolidated and worked at, and that is what we did.” Restructuring seems to have been more about refocusing the business on its traditional strengths than making big changes. In the early years of the decade it was returned to
We have come a long way in terms of training over the last few years and innovative ways of rewarding employees in terms of incentives
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John Craig fEATURE
profit: it was time to think about growing, she says, but the shareholders that supported the MBO were now looking at an exit rather than putting more money in to growth so she had to look for another way. “We didn’t originally set out to sell the business, but when Pepkor, the pan-African retail group showed interest in purchasing us we saw there could be great synergies in being part of a strong retail group. Pepkor’s backing would enable us to set up more stores and grow the product offering while still protecting our strengths.” In 2006 Pepkor acquired all the equity in John Craig. “Looking back after four years, I am certain that decision was spot-on,” says Moreira. “There have been massive benefits in areas where we needed help like logistics, training, driving down supply chain cost and of course capital investment.” At the same time, she adds, Pepkor is happy for John Craig to be run as an autonomous business when it comes to choosing how it approaches the market, what it stocks and how it relates to its customers. The last of these is probably the most important, and Lily Moreira keeps coming back to it. “I think if there is one critical aspect of this business it’s the culture. And that is a balance between how the customers see us and how the people who work for us understand what the customers expect. We have come a long way in terms of training over the last few years and innovative ways of rewarding employees in terms of incentives.” Personal service of a practical nature is what typifies a visit to a John Craig branch – not the hard sell. For example, appreciating that no two men are the same shape as each other (let alone the model in the catalogue!) if any
eclipse Technologies eclipse Technologies is proud to be part of John Craig’s Success for the last eight years and has developed a strong professional relationship which has strengthened both companies in their stride to become leaders in their respective markets in Southern Africa. This has also demonstrated the excellence that can be achieved when pairing to dynamic companies to achieve one goal. eclipse Technologies - Business Software has evolved.
suit or formal trousers bought at John Craig needs to be altered to make a perfect fit, those alterations will be carried out at no charge, very often on the same day. Most of the clothes John Craig sells are international brands that have proved popular over the years. This range is updated but only very selectively: even so, there are occasions when lines that sell well abroad aren’t quite right for South Africa. When a gap is spotted it is filled with one of John Craig’s own brands like Muratti or JC Collection. House brands are becoming a bigger contributor to the bottom line, she says, but they are not intended to take over from tried and tested product lines. In the next year or so, John Craig plans to open some stores in the one province it hasn’t reached yet. “We are looking at a few locations in the Cape area, and when we find out where our target market does its shopping we will be setting up there,” Moreira promises. She is definitely interested in the potential offered by neighbouring African countries too, though that expansion will probably take a year or two longer. Meanwhile, business as usual will satisfy her. eNd
We thought there was a good opportunity to set the business on a sound footing but that it needed to be consolidated and worked at, and that is what we did
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PSV ComES THRoUGH
TOUGh INTERIm PERIoD
AltX-listed PSv holdings experienced its “toughest sixmonths trading period since listing in 2006” but still increased turnover and is looking forward to a bright 2011. 66
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PSv holdings fEATURE
I
t has been a tough six months for diversified industrial engineering group PSV Holdings. Diluted headline earnings per share for the six months ended August 2010 declined to 1.27 cents from 2.79 cents a year ago. CEO Abie da Silva said the firm experienced its toughest six months since listing in April 2006. However, despite the harsh economic climate, the group’s turnover increased by 3.5 percent to R195.6 million. Gross profit margin declined to 23.2 percent from 26.8 percent in the previous period. Operating profit declined to R14.7 million from R23.9 million a year earlier. “PSV Holdings is best described as a diversified industrial engineering company. Even though the conditions have been harsh, we have performed well,” says Dave Johnson, Business Development Manager. “Business was impacted. We’ve suffered delays in finding and finalising contacts; we had to fight very hard to get work.” A focus on quality products and high levels of service delivery across all client categories ensured the good performance, during “tough trading times”, he adds. “PSV generated over R7 million from operating activities, but pressure on working capital, negatively affected cash flows,” da Silva said in a release. Management decided to maintain infrastructural capacity at pre-recessionary levels, resulting in pre impaired operating margins declining to 4.8 percent from 2009’s 9.4 percent. The Pumps, Spares and Valves segment had a tough year experiencing a sharp decline in turnover, gross margins and profitability. “We are confident that we will notice an improvement in high margin refurbishment
Even though the conditions have been harsh, we have performed well
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PSv holdings fEATURE
and maintenance work on water pumps, as the rainy season approaches,” da Silva added. Particularly pleasing was the performance of PSV’s Engineering Linings and General Industrial Supplies segment, which contributed 46 percent of the company’s consolidated revenue. As a result of Groupline Projects’, the glass and ceramic lining business, outstanding performance, revenue for this segment increased to R89.6 million from 2009’s R55.2 million, PSV said. “This company is in the fortunate position of carrying an order book that is full until October 2011 and has already exceeded its entire actual turnover for 2010 financial year in just six months,” said Da Silva.
“Omnirapid Mining & Industrial Supplies, exceeded expectations,” Johnson adds. Despite posting a decline in revenue from R70.4 million to R56.5 million, the Specialised Services segment gross margin increased from 16.5 percent to the current level of 21.2 percent on the back of the company’s petrochemical business, which has benefitted from a restructuring process. The future is looking bright for PSV, according to Johnson. It has recently acquired the entire issued share capital and loan accounts of Turbo Agencies, Turbo Agencies Zambia and Turbo Agencies (DRC) SPRL, for R24 million. Turbo Agencies supplies tooling and equipment to the mining, engineering and
PSV generated over R7m from operating activities
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SANSPAR Engineering sales
ONE OF THE LEADING DISTRIBUTORS OF VALVES AND MANHOLE COVERS IN SOUTH AFRICA. Sanspar Engineering Sales (Pty) Ltd was established in 1972 as an importer of industrial valves and allied products. In 1996 Sanspar were granted ISO 9001 certification and today are one of the leading valve and manhole cover suppliers in the Western Cape.
We are presently supplying valves to industries throughout South Africa and neighbouring countries.
Visit us online Tel: +27 21 511 0283 / 4 • Fax: +27 21 511 6993 Email: gkirton@iafrica.com
www.sanspar.co.za
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PSv holdings fEATURE
automotive industries in Botswana, Zambia and the Democratic Republic of Congo. “The acquisition of Turbo Agencies fits perfectly with our business plan to strategically focus expansion, outside the borders of South Africa. The most exciting attribute of the deal for PSV will be the ability to leverage off Turbo Agencies’ customer network with PSV’s range of products,” Johnson says. “The transaction will extend PSV’s African footprint. Although PSV and Turbo have certain common clients, PSV will be able to leverage off Turbo’s customer network with the range of PSV products. PSV`s products will also boost the product range for Turbo across Botswana, Zambia and the DRC.”
The transaction becomes effective on 1 March 2011, he adds. “Looking at the opportunity in the market, South Africa, DRC, Botswana and Zambia have been identified as key growth markets and we see growth in oil and gas, water and waste water, power generation and mining,” says Johnson. “Zimbabwe is another interesting market; a lot of clients are getting orders from there. “Zimbabwe’s economy is currently completing its second year of growth, thanks to high prices for gold and platinum and the axing of the Zimbabwe dollar,” he adds. “Political stability has also helped.”
The acquisition of Turbo Agencies fits perfectly with our business plan to strategically focus expansion outside the borders of South Africa
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Looking ahead, PSV has an order book of R113 million and prospects in the pipeline to the value of R225 million. Johnson is looking forward to the next six months with enthusiasm. “We will be moving to new premises in January,” says Johnson. “The new premises will house all 10 of PSV’s subsidiary companies. It made financial, logistical and strategic sense for all the companies to be under one roof.” PSV is a name well known throughout South Africa and its principal activity is providing pumps, valves, engineering linings, industrial supplies and fuel pumps, and dispensers to a wide range of clients. The group focuses on the industrial, mining, petrochemical, water and waste management sectors and its main product lines include vertical turbine pumps, splitcasing, end-suction and vertical sump pumps. It is involved in the electrical industry, manufacturing transformer drying and transformer oil purification systems. END
VCM are proud to be part of the logistics solution for Engineered Linings of the PSV Group
nd t a ent h ig re agemg in s, F an zin ion ea ar n M ciali olut M s io e ts VC ribut y sp tics lien and c t n is a Dis mpa log e for fric e A o c ativ n ad v -m ther ide. r o o n l u w in tai So orld n i W th wi Contact us: Ph: +27 21 7852655 Web: www.vcm.co.za
Joburg
Affordable housing in
In the last few years hundreds of families have moved into new buildings in Joburg through various housing programmes. Many had not had decent roofs over their heads in decades. South Africa Magazine talks to Joshco, an agency of the City of Johannesburg, formed to reduce the housing backlog.
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Joshco FEATURE
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he housing landscape in Johannesburg has brought new innovations in recent times including policies that address the City’s most visible housing challenge – informal settlements. The City of Johannesburg developed a strategy to formalise the informal settlements and to eradicate slums through the implementation of various housing programmes including social housing. The Johannesburg Social Housing Company (Joshco) was established in March 2004 to “fast pace” the delivery of rental housing demands in Johannesburg. It is solely owned by the City and is governed by a board of directors appointed by the City of Johannesburg. Joshco’s main purpose is to provide affordable, quality and sustainable social housing through provincial subsidies, grant funding and loan funding. Its key functions include the development of new units, refurbishments, conversion of existing buildings into social housing units and management of rental housing stock. Its programmes and activities are informed by the City of Johannesburg’s Growth and Development Strategy (GDS) and Integrated Development Plan (IDP) and it specialises in turning former dirty, crime-infested buildings in places worthy of being called home.
Hostel Redevelopment Programme A great example of this is the hostel redevelopment programme. Old municipal hostels were identified by the City through the hostel upgrade programme for conversion into family units. For many years, these had been single sex male hostels but the time for change had come. Some of the hostel upgrades which have been done by Joshco to date include City Deep, Orlando Housing project and Antea www.southafricamag.com 73
Joshco fEATURE
Village. These former hostels have been radically transformed from dormitories into quality family units.
COUNCIL hOUSING ESTATES Since Joshco took over the Council estates, there have been significant improvements in the management and maintenance of these projects. In each project there are employees who attend to the daily running of the estates and provide professional customer services. These include Claremont, Bellavista, and Eldorado Park Ext 6. Joshco’s approach is to create “sustainable communities” within these estates. The introduction of Community Development Joshco’s projects has created employment opportunities for tenants, youth awareness programmes, crime prevention campaigns, entrepreneurship programmes and community participation.
INNER CITY UPGRADE PROGRAMME The City of Johannesburg has an Inner City Charter, which highlights the upgrade of the City. Joshco has contributed immensely to the upgrade of some of the Inner City buildings. Some of these buildings have been upgraded and these are La Rosabel, Chelsea, Raschers Building, BG Alexander and Casamia. Europa House, Vannin Court, AA House and Linatex are all earmarked for future development.
GREENFIELD AND MIXED hOUSING PROJECTS Joshco has developed 417 new family units to date, in an affluent area in Roodepoort, the Roodepoort Inner City project. This project is divided into 4 phases and it is well managed. Another project, which boasts 478 family units, is the Kliptown Square project, situated at the heart of Soweto in the Walter Sisulu Square precinct. This area is well known for its historical importance as and has all the 74
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FAST FACT
The City of Johannesburg has over three million inhabitants. Many of these people lack access to basic services, including basic housing. The housing backlog is exacerbated by continued migration. The providing of low-cost housing is a major challenge.
amenities including a museum, shops, offices and a taxi rank. “Going green” is the focus within the construction in terms of energy efficiency. One of Joshco’s projects which was built with solar panels is the Botlhabela Village, situated in Alexander Far East Bank. The project boasts 521 communal rooms and a crèche. Pennyville mixed housing project was developed by the City of Johannesburg and is now managed by Joshco. This is a typical example of inclusionary housing which has a mixture of rental units, communal rooms, RDP houses, middle and high-income rental units.
DETERMINED TO SUCCEED Joshco caters predominantly for individuals earning a household income between R1,500– R7,500 per month. The goal of improving neighbourhoods has been formidable. Joshco is tackling it. It works with both communities and building owners, and seeks to bring them into an organisational framework. Significant challenges remain. Bad buildings continue undermine efforts at improving inner city Johannesburg, and excessive utility charges limit affordability. Social housing presents its own challenges but Joshco is determined to make a remarkable difference and continue to create sustainable communities. eNd
“Good People for Good Business” - Exclusive People Personnel Consultants has been active in the South African market since 1986. Joanne Kaplan, one of the original pioneers of the company, manages a small and highly-focused team of recruitment specialists who have developed an enviable reputation for delivery. - Exclusive People aligns the stories of our clients and candidates to help promote an excellent match for both parties. - Being passionate to change the world for the better, in concert with JOSCHO, we achieve a synergy in our strong performance and delivery culture. As an extensive full-service recruitment agency, Exclusive People provides all of the following specialized placement services, locally and internationally: ¸ Permanent staff ¸ Contract and temporary staff ¸ Executive search/headhunting of organizational leaders 179 Corlett Drive, Bramley, South Africa 2196. Telephone: +27114408560 Fax: +27114408563 PO Box 37210, Birnam Park, 2015, South Africa Email: epeople@exclusivepeople.co.za
PoWeRING
Up Laurence Savage, managing director of steel fabrication company Genrec engineering, tells Jane Bordenave about the company’s key role in construction of South Africa’s newest power stations and the importance of training for success.
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Genrec Engineering fEATURE
G
enrec Engineering was founded in 1953 in Wadeville, Germiston and became part of the Murray & Roberts group 20 years later. The company provides expertise in the field of large-scale steel fabrication and works on a global scale, often in partnership with other Murray & Roberts sister companies to provide a comprehensive solution to the customer. The current capacity at the Germiston fabrication works is 3.5 thousand tonnes of steel per month. Managing Director Laurence Savage, an engineer and with an MBA, has been moved from within Murray & Roberts to his current position to deliver the power projects steel requirements. The organisation works across many industries, with clients in mining, petrochemical and mineral benefication, as well as highrise buildings and sports stadiums – it was involved in the construction of the Zayed Cricket Stadium, which is arguably one of the best in the world. However the current focus for the business is on the construction of two new South African coal-fired power stations, Medupi and Kusile, with a joint project value for all steel fabrication of R6 billion. It is hard to understate the immense scale of these projects, as Savage explains: “Twelve Boiler Units are being built, six for each power station, with each power station producing a total of 4,800 megawatts of power. As an idea of what that means in real terms, each station weighs about the same amount as a modern, military-grade aircraft carrier. The steel we are producing is being used to build both the mainframe that will carry the 800 megawatt boiler and all supplementary structures. The mainframe is the heart of the power station weighing over 3500 tons and is surrounded by a further 15000 tons of support structures for
We are preparing to erect the mainframe at Kusile 1 in early 2011
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Genrec Engineering fEATURE
each boiler. Work has already begun at Medupi power station, with two boiler units having commenced erection, boilers six and five. With Medupi well underway, we are preparing to erect the mainframe at Kusile 1 in early 2011.” In order to produce the 220,000 tonnes of steel required to fulfil the project, Genrec Engineering has augmented its workforce by 35 percent. Taking on an extra 425 people has enabled the business to add a third shift and run its manufacturing plant 24/7 in order to meet targets. The company puts great emphasis on the importance of training and some of these new recruits have been taken on as apprentices. “We have a training facility on site and we have just graduated 55 apprentices,” says Savage. “The provision
South Africa has not constructed a power station of this nature and scale for approximately 20 years of effective training on an on-going basis is an important part of the Murray & Roberts philosophy and is something we engage with actively. The reality is that the better you train your people in processes, procedures and develop their skills, the more effective your company will be, so we see training as part of a continuous cycle of improvement and efficiency.” Indeed, Savage considers the knowledge of his staff to be the company’s key asset. “There is no doubt in my mind that people make the biggest difference to a company and that the skillset and willpower of our people sets us apart from the competition. We are coming up to our 78
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We are proud to announce to our Customers that MM&G achieved ISO 9001 Certification on 10th May 2010.
MM&G continually strives to improve its position as a premier steel fabrication and engineering group, supplying and servicing the Mining and Construction Industries.
0027 11 914 4740 dvos@mmg.co.za
annual awards presentation and I have around 25 commendations to give to members of staff who have been with the company for over 20 years.” Training at higher levels is also important as there is a national skills shortage amongst engineers when it comes to knowledge of building power stations. “South Africa has not constructed a power station of this nature and scale for approximately 20 years. Consequently, there is a gap in the 3550 age range where very few engineers have experience of working on power generation projects, so it is very important for us to train the younger generations effectively.” Environmental sustainability is a cornerstone of Genrec Engineering’s business model. “Our focus when it comes to environmental sustainability and waste reduction is largely on the value add processes,” says Savage. “The reality is that the raw steel comes to our facility by truck and the finished product leaves by truck, and there’s no way of avoiding that, but what happens in our factory we can change. For
Participating in South Africa’s growth as a proud supplier to Genrec
The provision of effective training on an on-going basis is an important part of the Murray & Roberts philosophy and is something we engage with actively
example, where we do a lot of metal heating and welding, we have undertaken internal analysis to ensure that we are using the least damaging products and the most efficient processes possible; it is here that we can have the biggest impact.” Genrec has also found that, contrary to what some companies fear, becoming more environmentally friendly has reduced costs and benefitted the company. 80
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“When you go down this route, it makes you work more effectively, which reduces power usage, gas usage and over all production costs.” When it comes to the future, Savage is optimistic on many fronts: “I do not think that anyone’s naïve to the fact that the rest of Africa is just waiting for development and this presents an enormous opportunity. No one has really looked into the opportunities
Genrec Engineering FEATURE
that exist north of our boarders deeply enough, and this has to change. In Europe, everyone is talking about the opportunities on our continent and if we in South Africa do not realise this then we will be missing opportunities on our door steps. Africa is having a golden moment, which we expect to continue for at least the next five years and which we intend to use to our advantage by working increasingly in neighbouring countries, as we have done historically in mining, manufacturing and processing sectors as far as the DRC.” Within South Africa, Genrec will
be embedding itself in partnerships and relationships with its long standing customers within South Africa. It is aware of the potential for the move away from coal-fired power stations towards nuclear, wind or solar energy. Genrec is committed to being involved in these emerging technologies as they gain traction. “We realise that we as a nation are going to have to look at alternatives to coal and alternative fuels are a segment that we want to be a part of. We are going to seize these opportunities and recognise this is a key part of our future.” END www.southafricamag.com 81
e r o f Be ENGINEERING THE
fUTURE Jane Bordenave talks to Black Balance’s founding Executive Director malcolm Biggar about the importance of empowerment and how it is influencing current projects.
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After
Black Balance fEATURE
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wazulu-Natal based Black Balance is an economic development and engineering consulting company. The firm was founded in 2006 as a joint venture between Executive Directors Mel Clark and Malcolm Biggar who had been running two independent businesses previously. “I am an engineer by trade and started my company Biggar Engineering in 1998,” Biggar explains. “It was a fairly small BEE civil engineering company, but it was strong. When Mel and I began talking about a joint venture in 2005, we saw the opportunity to bring his economic expertise together with my knowledge of engineering and create an entity with a broader skills base. One year later Black Balance was born.” The organisation’s main focus is on government and municipal contracts, such as the construction of waste management infrastructure, roads and buildings owned by the local municipality. “We have looked to capture a small segment of the South African engineering and property development market, with the majority of our projects being government tenders,” says Biggar. There are many benefits to having cornered this particular market, not least of which is the ability to fulfil important areas of the company’s philosophy. “When we are looking at a project, we examine both the most effective way to complete it and how it can be used to empower the local community. Sometimes on smaller projects this is not possible, but on the larger programmes we will always try our best to provide empowerment opportunities to local black-owned companies.” Explaining the reason for this, Biggar continues: “There
have been a lot of changes in South Africa since 1994 and the end of apartheid, but unfortunately there are still prejudices to overcome. Being in the position where we can choose to empower local companies and local people, we can give them the experience needed to help effect that change.” To help achieve this empowerment, when Black Balance is involved with a project, it ensures that the balance of the budget is spent in the local community. “Normally there’s an 80/20 split in the budget, with 20 percent being spent in the community where the project is taking place and the remaining 80 percent will leave once it is completed. Consequently, the amount of money that will enter and benefit the local economy is greatly reduced,” says Biggar. “We aim for 5060 percent of the budget to go directly to people in the local area.” What Black Balance attempts to ensure is that as much of the construction activity is subcontracted to sizeable community based organisations, thereby creating opportunity for these community based organisations to grow. “So, if we have a project worth R20 million, we would divide this into four R5 million contracts and empower four local contractors directly,” Biggar says. It is a method that has garnered a lot of interest from the business’ partners as a way of empowering previously disadvantaged communities. “From a sub consultancy point of view, Black Balance will look to appointing smaller organisations to assist with the volumes of consultancy work and thereby grow these smaller practices into sustainable
We are now helping the district to locate extra sources of money that will allow us to get the reticulation extended and the project complete
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Black Balance fEATURE
With this project we will be reaching some of the most impoverished sections of KwaZulu-Natal
companies,” he adds. “In addition, ancillary works associated with our practice are outsourced to companies who need empowerment, this way we hope to contribute to the economic upliftment of our beloved country.” The firm’s current main project is a pipeline that will serve the iLembe District Municipality of KwaZulu-Natal. The total project value is R1.2 billion and could last up to 30 years. The initial phase, which has just gone out to tender, is a R20 million emergency pipeline installation. Currently, many of the rural villages in iLembe do not have access to potable water. Water is either brought in by tanker, and held in large storage vessels, or the village may have a borehole with a standpipe. Neither situation is desirable, as residents have to walk up to 84
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200 metres to get potable water, which they then have to carry all the way back to their house, but this new development is set to change that. ”The first stage is a major pipeline that will be laid within the R102 highway road reserve, that runs in parallel with the coastline, about 8km inland,” explains Biggar. “From there, we will reticulate east and west to reach the towns and villages in the iLembe district municipality.” This is a very important project for Black Balance, in terms of budget and scope and gives the company a unique opportunity to put its philosophy into practice in many ways. “With this project we will be reaching some of the most impoverished sections of KwaZuluNatal and, hopefully, make it so that by the time we have finished each person has a tap
Devru Construction is a multi disciplinary construction group based in Kwa-Zulu Natal. Over the past 15 years, the Group has grown from strength to strength to provide a comprehensive portfolio of civil engineering services to its clients. With a highly qualified team fortified by strong family values and extensive resources, Devru Construction has the edge to provide clients with an appropriate solution to their needs. Postal Address: P.O. Box 70554, Overport, 4067 Physical Address: 10 Tramway Road, Rosehill, 4051 Tel: +27 31 5633852 Fax: +27 31 5643986 Cell: 0834415131 / 0833062050 e-mail: civils@devru.co.za,
in their own house, not 200 metres away,” says Biggar. “We are already in talks with the procurement department of the iLembe district municipality about how to proceed according to our principles. This initial phase has been an emergency installation, but from here we can think more about how to empower the local community. The scale of this project will enable us to really put our philosophy into practice by using local contractors, local workforce and local suppliers as much as we can. We will also be working to ensure that the people who work with us at the construction phase will be the ones who will continue to be there for the maintenance and development of the project even after we have left. We are looking to improve people’s lives by giving them better access to water and also to boost the local economy at the same time.” It is an ambitious wish-list, but that is what Black Balance is about. The challenge now,
according to Biggar, is to secure additional funding for the continuing stages of the project. “There is enough investment to put in place the bulk of what we have planned and we are now helping the district to locate extra sources of money that will allow us to get the reticulation extended and the project complete.” From all of this one thing is clear: Black Balance isn’t so much a company with a corporate philosophy as two men’s philosophy turned into a company, and that’s what makes it work. The desire to use improvement works such as roads or housing or pipelines to really benefit the community where these things are being built in a way that goes beyond the project itself is the firm’s unique selling point, and one that is piquing the interest of both potential and actual clients. South Africa has, as Biggar says, changed greatly over the past 16 years and it is companies like his that will help it to continue moving forward in the future. eNd www.southafricamag.com 85
SAR: ADDED VALUE ThROUGh
A U T o m AT I o N
find out how German engineering, invention and ingenuity (as well as automation) is benefiting South Africa. 86
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SAR electronic SA (Pty) Ltd fEATURE
G
erman engineering is among the best in the world. It’s machinery and technology has an enviable reputation (think Siemens AG, BWM, Audi, BASF, Bosch, Mercedes-Benz or Daimler AG). Why is this? Well, it comes down to culture: Germany has always championed technology and craftsmanship, and engineering is a highly respected profession. This, of course, is nothing new to South Africans. We know all about German engineering - it is a yardstick for measuring our own brilliance - and we are proud of the strong and successful trade record that exists between Germany and us. “SAR Electronic SA certainly aims to contribute to and continue the strong German tradition of excellence, while continuing to build on local strength in South Africa,” says Andreas Wagner, Technical Director, SAR Electronic SA (Pty) Ltd, the firm’s South African operation, and a market leader in the automation and production efficiency arena. “I myself have a strong engineering and automation background, completing my studies in energy electronics with Siemens in Munich, before working in Germany and returning to South Africa. I have been with SAR for a little over 10 years now.” As technical director Wagner “takes care of the technology” and is responsible for ensuring that South African customers can benefit from classic German invention and ingenuity. “It is a very challenging role. I love technology, finding solutions and being creative,” he adds. According to Wagner, SAR can handle projects of any size, and deliver turnkey systems or subsystems. “You can always expect and depend on our quality, reliability, and proverbial German engineering performance,” he stresses.
“With SAR you always have the advantage of a competent partner, capable of delivering cost effective automation.” SAR, unsurprisingly, is always there when customers need, providing immediate support and service. “Our goal is simple: we want to give our clients a competitive advantage,” says Wagner. “From the analysis of existing production facilities, conception of the production process and the development of new and custom-tailored solutions, turnkey solutions, or whatever it may be, we guarantee the highest quality.” With its innovative automation, intelligent information technologies, and unique interdisciplinary engineering expertise, SAR can fulfil almost any requirement, in almost any industry.
Our goal is simple: we want to give our clients a competitive advantage
hELPING INDUSTRY GROW
SAR works across many markets and as such has survived the worst effects of the downturn. But which fields are performing best and where is the potential? “The renewable side has been good,” says Wagner. “The PV market in South Africa has really exploded; a lot of people are interested and we are getting a lot of companies popping up all over the place, given the potential, but they lack the required electrical engineering background. You need a certain level of knowledge in this technology field and there is a lack of understanding for this in South Africa. People just see potential and want to get involved but lack the understanding.” SAR, he says, is helping a lot of smaller players compete in this highly aggressive and fast growing market. “A lot of smaller companies come to us to do their engineering and source their equipment for them,” says Wagner. “We provide a solution for them, and www.southafricamag.com 87
SAR Electronic SA (Pty) Ltd FEATURE
they go and implement it, which is great and exactly where we see ourselves. We want to be an enabling factor for smaller engineering companies, supplying them with a solution and equipment to keep their clients happy and to empower South Africa and help it grow. “We are the background support for these companies.”
BMW One of SAR’s major customers – and the reason for it being in SA - is BWM. South Africans love luxury German cars, the number of shining new saloons rolling out of its plant in Rosslyn is testament to that, and SAR is playing its role. “BMW are an important client and we have a great relationship. They have come through the downturn very well, the new 3 Series is coming out in SA and they are investing heavily in plant and equipment.” SAR has done a lot of work with BMW, in partnership, developing a number innovative concepts using key components from the old legacy systems and combining it with equipment that matched their standard
production control systems – they have also done new build and custom work. “We’ve certainly played a part in their successes in SA, and Germany also,” Wagner says. “To go back in our history, we actually came to SA, well the automation department of SAR came to SA, with the E46 BWM. BWM had a requirement that we did the complete body shop and they said they needed local support for the plant; we formally registered this office in 1997. Since then, if you ask what knowledge we have built up down here, we have always followed the principle of getting local people to build up and to upskill. “Away from BMW, we have a number of industrial clients that are in manufacturing and general industry,” Wagner adds. “In the downturn, they have had to up quality levels to compete on a global market and there we have seen a lot of development where people used to have backyard factories and bad lighting and they have, because they want to compete, and compete with new product coming into the country, upped their working standards, improving work places, skills
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and improving their general machinery to deliver a quality product. All of these things have meant a lot of companies have invested during this hard spell, which we have been able to capitalise on.”
PV POTENTIAL Eskom has an enormous challenge to match demand and supply in the near future - as early as 2011. Renewables, like PVs, which Wagner mentioned, are set to contribute a lot more. “The alternative energy market will be literally exploding as more independent power producers enter the market,” says Wagner. “It depends a little on what the Government does with the feed-in tariff and whether they get their act together and make things happen. There have been threats of Eskom running out of power again… If Eskom carries on with lagging investment and growth we will have blackouts again and we will seek alternative energy and alternatives really hitting the market.
“On top of that, we will have automation coming out into rural areas,” he adds. “It will be automation of basic things, to up production and enable smaller communities to start producing some product. Access to power is vital in this respect.” For the future, Wagner wants to improve the standard of local engineers and is committed to investing in that goal. “One of my targets is to improve education. We had very good student exchange programme in the past, which has fallen flat purely because the quality of SA education institutions – standards are slipping. I am going to put a lot of effort into getting that going again in the New Year; we will be heavily involved in this. “We need to get people skilled in South Africa. We have got a lack of skilled people and such a high number of unemployed youths. The logic is simple: if you need skilled workers and a lot of unemployed people, you need to train them, give them the right schooling and make them employable.” END www.southafricamag.com 89
A BEAUT I fUL
solution Bytes Document Solutions is a R1.8 billion-a-year company with a new focus and CEO to match.
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Bytes document Solutions fEATURE
X
erox is synonymous with highspeed colour printers. It pretty much invented photocopying and is today the world’s leading document management technology and services enterprise. It helps businesses around the world develop online document archives, analyse how employees can most efficiently share documents and knowledge in the office, operates in-house print shops or mailrooms, and builds web-based processes for personalising direct mail, invoices, brochures and more. Xerox also offers associated software, support and supplies such as toner, paper and ink. “Bytes Document Solutions is the authorised Xerox distributor in South Africa,” says Tanya Moodley, the firm’s marketing director. Bytes Document Solutions, previously known as Xerox South Africa, she says, is a R1.8 billion-a-year company made up of three business components: the sole authorised Xerox distributor to 27 subSaharan countries, paper merchant NOR Paper and digital printing and mailing supplier, LaserCom. “Bytes Document Solutions acquired NOR Papers in 2008, which added to its existing paper business and made it one of the largest suppliers of paper in South Africa,” says Moodley. NOR Paper has earned a potent reputation over many years for its customer service and the quality of its merchandise, which is sourced worldwide, she adds.
NEW CEO In March, Bytes Document Solutions appointed Hennie du Plessis as its new CEO. He replaced Rob Abraham, who has been promoted to the role of CEO of Bytes Technology Group and has been with the company for 12 years. www.southafricamag.com 91
Bytes document Solutions fEATURE
Previously, Du Plessis had been with Bytes Healthcare Solutions for 10 years. He took charge of the three autonomous divisions inside Bytes Document Solutions: the Xerox division lead by MD Rabin Ram, NOR Paper, headed by Raymond Blake and LaserCom, formerly Laser Facilties, headed by Konni Hoferichter. “I am humbled to be offered the opportunity to head up a company with such a great pedigree and track record,” says Du Plessis. “For decades this company has led the local office automation market, and I intend to uphold a proud record of top management and achievement. “I have inherited a dedicated, highly experienced and motivated management team,” he adds. “Bytes Document Solutions
has undergone a significant restructure as it aims to grow market share and capitalise on resurgent market conditions. It has created three autonomous businesses and we move forward.” His aim is to help people find better ways to do great work by “constantly leading in document technologies, products, and services that improve customers’ work processes and business results”. “We believe that no matter what size, every business is unique and every business is driven to improve results,” he says. He has a point: What is right for one business might not be right for another; it all depends on the business, its long-term goals and short-term drivers.
We believe that no matter what size, every business is unique and every business is driven to improve results
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“Whether you are trying to grow revenue or focused on cutting costs or simply need a better way to work, we can certainly help and provide the solution for your business,” Bytes Document Solutions’ website says.
SIX CORE VALUES Bytes Document Solutions operates under the guidance of six core values: ‘succeed through satisfied customer’; ‘value and empower employees’; ‘deliver quality and excellence’; ‘provide superior return to shareholders’; ‘use technology to deliver market leadership’; and ‘behave responsibly as a corporate citizen’. It believes that no matter what size, every business is unique and every business is driven to improve results. Bytes Documents Solutions is a division of Bytes Technology Group South Africa (Pty) Ltd, owned by Altron, with Kagiso Trust Investments as its broad-based black economic empowerment partner.
It is an accredited Level 3 Valued Added Supplier as rated by EmpowerDEX in June 2009. Allied Electronics Corporation Limited (Altron) through its principal subsidiaries, Allied Technologies Limited, Bytes Technology Group (Pty) Limited and Power Technologies (Pty) Limited, is invested in the telecommunications, multi-media, information technology and power electronics industries. “Invention and discovery have always differentiated Xerox in the marketplace,” Du Plessis says. “We see that continuing. “Xerox is a strong international brand and its vision and values will continue to guide Bytes Document Solutions in South Africa and Africa.” Bytes Document Solutions has grown into one of the largest and most successful document management businesses on the African continent, while remaining substantially profitable. END
D S I : S A’s
LEADING SUPPLIER To THE mINE INDUSTRY
Since dSI South Africa was established in 2002 it has become the strata control partner of choice throughout the country’s mining industry; founder and managing director Nigel henson explains how he overcame determined competition. 94
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dSI South Africa fEATURE
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SI stands for Dywidag Systems International. The name bears some explanation – Dywidag is contraction of Dyckerhoff & Widmann AG, a German construction group that has its origins in the 19th century, and which has expanded its presence across Europe, and into Australia, the United States and Latin America. It specialises in products associated with tensioning within concrete structures. DSI South Africa is part of its ‘underground’ arm, which extends this expertise into comparable problems associated with mining and tunnelling works. It is 50 percent owned by DSI International, 50 percent by Capital Africa Steel, an investment group with interest in the metals sector. The popular conception of a mine is a series of tunnels, the roofs of which are supported by pit props. There’s some truth in that but the forces that start to act once you start to excavate the earth and disturb its natural equilibrium are very complex, explains Nigel Henson, Managing Director of the Johannesburg-based company. “Some coal mines can be a kilometre wide and 15 kilometres long: there can be a tremendous amount of forces acting on an excavation like that and they all have to be neutralised by installing roof bolts and rock bolts to prevent any rock bursts or other catastrophes.” DSI moved from construction into the underground arena when in 2000 it bought ANI Strata Products, the ‘strata control’ arm of Australian National Industries, a company with diverse steel industry interests. The following year DSI approached Henson, then MD of Murray & Roberts; South Africa’s biggest strata control business, inviting him to set up a branch of DSI in South Africa. Breaking into this business was not the easiest thing to do. The incumbent suppliers
of rock ties and roof bolts combined to make it difficult for DSI to obtain the raw material is needed, and for its first two years, 2002 and 2003, the new company recorded a loss. However in 2004 it made a profit that has grown steeply and steadily since then. As Henson laconically summarises it: “We started in 2002 and built ourselves to be the biggest supplier in South Africa.” Make no mistake, strata support is big business and every mine depends on a good supply of rock bolts, cable bolts, tensioners, liner plates and the like. The market in South Africa is huge, about the third biggest in the world after China and the USA according to Henson. “Nobody knows quite how big the China market is but in the USA they consume 10 million units a month. South Africa consumes about 1.5 million, around the same as India and Australia.” Of this, DSI has share of between 30 and 40 percent he estimates; not bad for a company that came in less than ten years ago. The product is all manufactured locally at the large Johannesburg plant, where some 250 people are employed. “When we started we were operating on a tight budget in terms of equipment but we now have one of the most modern and automated plants in the southern hemisphere,” he claims. However the people are the secret weapon; the reason behind DSI’s success in what is essentially a commodity market. There isn’t that much to differentiate between one manufacturer’s bolt and another’s, Henson is the first to admit; the product is specified by the client. What makes the difference is the quality of the people involved and the service they are able to give. “Our policy is to get the best people and pay them better than the others can. At the end of the day the added value
We started in 2002 and built ourselves to be the biggest supplier in South Africa
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dSI South Africa fEATURE
you give to your clients is going to tell. We are innovative and spend a lot of time developing new products and finding solutions for our clients so they come to us with any problems before going to anyone else.” He has never been tempted to get into a price war having seen companies go under as a result of sacrificing margin while chasing volume. In a mature market like this, there is only so much opportunity for expansion in the home market. There will be opportunities in other parts of Africa, with Australian, European and American mining companies investing in Tanzania, Zambia, the DRC and Mozambique as well as the other countries in the SADC region. DSI intends to get a share of the action, but Henson counsels caution – it is no good setting up production facilities in a country that can’t support it with the infrastructure and skills that it needs, and which are present in South Africa. Nevertheless there is new business to be had in South Arica itself. When the 80-kilometre public transit Gautrain project was inaugurated four years ago to link Johannesburg, Pretoria and the OR Tambo International Airport it was the largest rail infrastructure project under construction in the world, classed alongside London’s Crossrail, Canada Line Rapid Transit, Gotthard Base Tunnel, and Guangzhou-Shenzhen-Hong Kong Express Link. DSI in Germany had plenty of experience in civil tunnelling and the South African company was able to win the contract from Bouygues Travaux Publics under the Bombela Consortium against stiff competition, importing specialised double corrosion protection (DCP) rockbolts - the first time this technology had been used in South Africa. It then added them to its own production
We now have one of the most modern and automated plants in the southern hemisphere
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portfolio. “This particular type of bolt is ideal for complex engineering structures and aggressive rock conditions owing to our technology which provides long-term defence against the groundwater within the rock,” says Henson. “We did a good job, and it gained us some useful international networks.” For the Gautrain, having adapted the lengths of the anchorages to specific
Another rather different contract was to stabilise the underground elements of Eskom’s Ingula R20 billion pumped storage power station in KwaZulu Natal. That contract will be completed by the end of
Our policy is to get the best people and pay them better than the others can requirements, DSI South Africa produced and supplied the rock bolts to the job site just in time. Service at this level is second nature to a company that delivers job critical components in large quantities to its mining customers, and is a good example of how contractors can cut cost by partnering with a supplier which puts service first.
2010, however Eskom is planning to build further peaking stations such as Project Lima, the 1,500 MWA pumped storage scheme planned for Mpumalanga. However the bulk of DSI’s turnover will come from mining for the foreseeable future, Henson predicts. eNd www.southafricamag.com 97
waste, oNE mAN’S
treasure ANoTHER mAN’S
SWTSA is proof of the opportunity that exists within South Africa’s waste sector, as South Africa magazine discovers.
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Sold Waste Technologies SA fEATURE
S
olid Waste Technologies SA (Pty) Ltd (SWTSA) was established in 1993 to seek business opportunities within the waste sector in South Africa. The company, led by visionary CEO Edgar Adams, conducted research into various waste technologies internationally and eventually signed agreements with the very best in the UK and United States. Some of these technologies include waste to energy, automatic waste recycling systems and the manufacturing of products from recycled materials. They all represent vast opportunity. But why? Well, our daily lives generate a lot of solid waste, not only directly in the home, but also indirectly in factories that manufacture goods purchased by consumers. Solid waste management is a system for handling this; SWTSA seeks opportunity in that very basic fact. “SWTSA was formed in 1993 with the aim of being the best waste technological company in Africa, providing high standard health care risk waste services,” says Adams, an ambitious entrepreneur, with 29 years experience in the industry and a determination to turn waste “into something useful”. “Waste to energy, waste recycling and those things are a fantastic business opportunity, especially in South Africa,” says Adams. “We see solid waste as the ideal alternative energy source,” he continues. “It is a great way to turn discarded trash into a renewable source of energy, which can provide homes with heat and electricity and be beneficial for the environment at the same time. “When our waste is turned to energy, there is less space required in our landfills.
It is well known that waste to renewable energy programmes reduce the demand for harmful fossil fuels, because the energy received from these programmes can be used instead,” Adams adds. SWTSA is “not quite in ready” to generate electricity from waste just yet, but it has “done the groundwork”. Approvals are underway. “We haven’t produced any electricity yet,” says Adams. “But we are ready to do it. We are in the process of notifying the Department of Environmental Affairs of our intentions. The legal aspects need resolving, but in terms of the mechanics, we can do it; we have researched thoroughly, have the technology and have the experience. “We are confident we’ll get approval and our waste will be used to generate electricity for our plant and the surrounding areas,” he adds. Adams says Eskom has an enormous challenge to match demand and supply in the near future. Renewables are set to contribute a lot more. “Renewables are an area of huge opportunity,” he admits. “As well as energy from waste, we have entered the solar market. We have signed an agreement with Solairedirect SA and it is our vision to join with them to penetrate the market in Africa. It has huge potential. “These are not the only areas of interest; we are involved in many different parts of the waste management industry. One of our more important markets is medical waste,” Adams continues. “SWTSA is a preferred health waste partner in South Africa with Stericycle, the largest health care waste systems supplier in the world. We are the owners of a 25-ton a day processing plant in Cape Town with a monthly capacity of 1200-
We see solid waste as the ideal alternative energy source
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Sold Waste Technologies SA fEATURE
We are the only health care risk waste tons and a plant at City Deep in Gauteng with a daily capacity of company with a 50 tons and a monthly capacity national footprint of 2,540-tons.” The proper disposal of and have the medical waste is one of the most pressing, yet least talked largest treatment about, aspects of our society. A huge amount of medical waste capacity in South is properly disposed of every Africa year, Adams says, and as new technology continues to adapt, offering clean and safe medical waste removal, regulated medical waste will continue to be disposed of in a neat and virtually silent way. That being said, the system of waste disposal (especially medical) is not yet flawless, he admits. “I don’t think the South African medical waste stream is on a par with what is happening in Europe and the US. The biggest problem we have is in terms of sorting on site. People are not properly trained at hospitals to sort waste and things often end up going into 100 www.southafricamag.com
the wrong container. I think we will solve the problem,” Adams says. “There is always more to do or that could be done, even in the most developed waste management markets,” he adds. “But I am delighted with what we have achieved and continue to achieve. We have grown this company from a company that had a zero customer base to a leader in South Africa. I see that the opportunities in this field are big, if you have the right knowledge and experience. “We are looking at listing the business and the potential for our development is huge; we have been inundated by companies from Africa who want us to join them; they have asked us to put our technology into the market, into Africa. I see that is taking place in 2011/12. Africa needs South Africa and
BCL , part of the Berco Group of Companies, has provided a holistic medical waste management service to generators including the specialised containment, transportation in permitted vehicles and disposal via high temperature licenced incinerator for the past 14 years in the Western Cape. BCL is planning expansion into other provinces utilizing the Ai-Tec Macroburn VMED 500C during 2011 to ensure certain waste streams including anatomical waste is incinerated as per legislation.
Contact details:
Tel: 021 955 2447 Fax: 021 955 0283 Email: info@bclmedicalwaste.co.za
CK850943723
INDUSTRIAL ELECTRICIANS INDUSTRIAL INSTALLATIONS + MACHINE SYSTEMS + REPAIRS & MAINTENANCE + AUTOMATION SYSTEMS
5 2 25
EARS
P. O. Box 1345 Durbanville, 7551 Unit 3, 13 Stella Road, Montague Gardens 7441. Tel:- (021) 552-6045 Fax:- 086 535 2206 Cell:- 083-653-1825 VAT Reg No :-4410109625
S R A YE Y
TR ON G!
South Africa needs Africa. If we can all go together we can create an environment that works well and we can move quite far. I am confident that the Government is behind us; the Department of Environment is giving us full support and guidance.” Adams says that over the last six months SWTSA has been approached by a number of individuals, groups and bodies offering finance, noticing the obvious potential the firm is showing. “We’ve had it all, from banks to equity partners; they want to work with us to take things further and grow the market. “Within SWT Investment holdings we have SWT Medical Waste Technologies, SWT Properties, and SWT Energy - which has projects in Methane gas, Coal waste, Waste to Energy and Solar. There is potential everywhere.” SWTSA is the only health care risk waste company with a national footprint and has the largest treatment capacity in South Africa. END
AN S DS TILL GOING
UTI
ZIMBABWE
HYPERINFLATION
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uTi Zimbabwe fEATURE
Zimbabwe’s economy is slowly coming out of the woods and has posted growth for the second consecutive year. This is great news for firms like UTi Zimbabwe who “toughed it out” during hyperinflation, Ian Armitage learns.
T
here is much written in the press about Zimbabwe. We’re not about to dabble into politics or the past and certainly wouldn’t wish to criticise. Now is a time for optimism, and if possible, positives. Life there is changing. It has stabilised politically and economically, ditched its currency, and survived the worst period of hyperinflation in modern history. It is now a “hot pick” for savvy investors. “Zimbabwe’s economy was battered heavily by hyperinflation, at one time estimated at 500 billion percent, and political instability in the last 10 years,” says Neil Schroenn, MD UTi Zimbabwe. “The power-sharing government formed in February 2009 has led to some economic improvements, including the elimination of the Zimbabwe dollar and the removal of price controls. “The economy is registering growth, but will be reliant on further political and economic stabilisation,” he adds. Zimbabwe’s economy is currently completing its second year of buoyant economic expansion, thanks to high prices for gold and platinum, two of Zimbabwe’s main exports. Still, the idea of investing there seems insane. Yet, believe it or not, UTi has done exactly that. “Many companies saw a massive decrease in profit during the years that hyperinflation took hold. UTi Zimbabwe was caught up in this, but we survived the tough years and have emerged as a very healthy and competitive entity. In contrast, we’ve flourished,” Schroenn says. The question is, how? “A key factor,” he explains, “is the focus we put on customer retention. We believe that speaking with customers face-to-face helps to generate repeated business. We also focus on training. All staff are trained in-house to ensure that they can perform their job to the highest standard and cater to their customers every need in order to develop lasting relationships. www.southafricamag.com 103
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“We have been able to keep our company running in a normal fashion and boost sales at the same time,” Schroenn continues. Yes, the Zimbabwe economy is growing. But, you’re probably asking, why would anyone want to invest good money in a country like this? Surely there’s no point in even thinking about such a place? “Zimbabwe is full of promise,” says Schroenn. “We will grow and people will get a return out of Zimbabwe - the outlook for the country is gradually picking up. “At lot of South African’s are really putting a lot of effort into Zimbabwe…. Our view is yes, it will grow and you will get volumes… but don’t expect it to replace what you have lost in the South African market. Maybe in the last 12 months that reality is starting to hit home. There is just so much to do here. There is a bit of investment and it does keep us going as it were.” Capital projects in energy and infrastructure, as well as a mining and minerals boom, have kept UTi Zimbabwe busy, he says. “Due to the fast growing economy – it has grown at eight percent - and the exportation of minerals from Zimbabwe and other parts in Africa, we have been able to gain profit by shifting our focus and retaining as much business as possible by providing a service that is consistent and reliable,” Schroenn explains.
“The benefit for logistics managers in using UTi is twofold: one, we can develop a programme using one or more of our standardised services such as freight forwarding or contract logistics; or two, we can put together a totally integrated solution customised to specific requirements. Whichever a customer selects, UTi will maximise value along their supply chain with high quality, cost effective, time-definite delivery from end to end.” Three South Africans, with a vision to create a world-class freight organisation, able to deliver competitive advantage to each of its clients’ supply chains, founded UTi in 1976. Today, that goal has been achieved. “We have an excellent knowledge base and experienced people who knew how to move cargo in and out,” says Schroenn.
We have an excellent knowledge base and experienced people who knew how to move cargo in and out
BENEFITING LOGISTICS MANAGERS Zimbabwe is a landlocked country, neighbouring Zambia, Mozambique, Botswana and, of course, South Africa. UTi stretches worldwide. “UTi is an information-focused company offering a wide range of global integrated logistics to a customer base that stretches worldwide,” says Schroenn. 104 www.southafricamag.com
A BRIGhT FUTURE?
UTi is present in six continents with over 400 offices worldwide. It means that the Zimbabwean arm of the company can draw on the expertise and services in the rest of the businesses, enabling it to move cargo from almost any location in the world. “We are optimistic for Zimbabwe,” says Schroenn. “Mining and minerals is strong and agriculture is coming back,” he adds. “The agricultural industry is very different now than in Zimbabwe’s heyday – for years Zimbabwe was a major tobacco producer and a potential bread basket for surrounding countries but the agriculture-based economy collapsed. “It is returning and there are a lot of what we call ‘small-scale’ producers now. The volumes are growing and the market is very similar to what it is in Malawi where there are very few big commercial operations, rather
MBS CarrierS Sa
Po Box 9814 Edleen 1625 Tel 27 11 974 2021 Email: Lee@mbscarriers.co.za small operations that sell to big trading merchants, who we deal with. “We do face a lot of challenges, but it all basically boils down to the first one, which I will mention… cash flow,” Schroenn adds. “Borrowing is non-existent and Zimbabwe has become very cash orientated… it is a case of “pay now and then we’ll think about writing out the order”. That is hard to manage and it makes capitalising the business to grow faster, much more difficult.” The country’s infrastructure spend will have to increase if it is to take advantage of the opportunity presented by Zimbabwe’s accelerating economic recovery, he adds, particularly on the roads. “There is investment in Zimbabwe, but we could absorb 100 times what is coming in here,” Schroenn concludes. “That wont happen in a flood until there is political stability or economic change and the infrastructure improves. “We are experiencing strong growth and are proud to say that we are the only multi-national company doing what we do in Zimbabwe.”
Zimbabwe is starting to recover. There are plans for a privatisation programme. And the economy is backed by significant mineral wealth that’s yet to be fully exploited. It could yet realise its undoubted potential but, taking a step back, I wondered, how a South African, a South African that was formerly a vet, ended up in Zimbabwean logistics? “I started out as a vet, qualified at Onderstepoort, Tukkies in 1995, and practised for five years in the UK, New Zealand and South Africa,” says Schroenn, detailing the events that led to his posting in Zimbabwe. “I eventually left the profession and did an MBA at the University of Cape Town. After that I somehow landed up with UTi and have been with them since 2001, in a variety of roles. The last four years have been on contract with UTi in Zimbabwe. It’s been a challenge but we are a profitable business in real terms, surviving a hyperinflationary environment.” To learn more about UTi visit www.go2uti.com. END www.southafricamag.com 105
style Caravan in
As we enter summer, South Africa Magazine looks at Jurgens Ci, Southern Africa’s largest manufacturer of caravans.
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Jurgens-Ci fEATURE
I
n 1999, a group of friends and I purchased a caravan, the idea being we could travel the country before heading off to University. What an experience. But with hindsight, our caravan wasn’t the best (I can’t even remember where we got it… but it was cheap). We probably should have paid Jurgens Ci a visit. Why Jurgens Ci, you ask? Well it is Southern Africa’s largest manufacturer of caravans and motor homes. Part of Imperial holdings, it has been in operation in South Africa since 1952, which means it has unmatched expertise and experience. According to its corporate website, Jurgens CI has a network of dealers throughout South Africa and Namibia and “exports to Australia, Holland and New Zealand, offering a full range of products, after-sales service and sales of parts and accessories.” Jurgens Ci’s range is almost without limits. It has several world-class caravan brands as well as specialised units that meet the demanding needs of off-road enthusiasts and 4x4 travellers. “We also have a range of exciting outdoor gear and equipment through campworld,” says Jurgens marketing manager Nico Pretorius. The range includes canvas tents, rooftop tents, and a great variety of camping equipment.
I think it is fair to say it helped South Africans to discover the delights of caravanning
ThE SPRITE Perhaps Jurgens Ci’s best-known range is the Sprite. It is the caravan that made caravanning a favourite pastime among South Africans, Pretorius says. “I think it is fair to say it helped South Africans to discover the delights of caravanning,” explains Pretorius of the range that is approaching its 50th birthday. “The www.southafricamag.com 107
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Sprite range has the perfect choice and is arguably the best value-for-money available.” What makes the members of the Sprite family so special is that they are light, easy to tow, easy to manoeuvre, stylish and, of course, affordable. “It does appeal to those looking for affordable, yet stylish caravans,” says Pretorius. The Sprite 2010 range consists of the Sprint, Swing and Splash, each with their own unique appeal. First up, we’ll tackle the Sprite Sprint, which has an island bed, a dinette, and heavy-duty vinyl cushion flooring. There is also a very practical washable Renolit wall and furniture covering, colour-coordinated upholstery and window blinds, and soft-edge corners to all worktops. Interior LED lights and exterior patio lights
are included along with exterior 220-volt multiplugs, overhead lockers, and wardrobes, and the fridge has a generous 210-litre capacity. The microwave is optional, and there is storage for a 4.5kg gas bottle. Taking the interior volume into the outdoors is a highly useful rally awning. The Sprite Swing, on the other hand, has an island bed plus a double bed converting into a dinette. Like the Sprint, the Swing has heavy-duty vinyl cushion flooring and washable Renolit wall and furniture covering. Upholstery and window blinds are colour coordinated, and soft-edge corners feature on all worktops. Interior LED lights and exterior patio lights are included along with exterior 220-volt multiplugs, overhead lockers, and wardrobes. In the galley is a 210-litre fridge,
The new Sprite range is sure to prove as big a hit as all its long line of predecessors
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The Mercedes-Benz Sprinter The smooth operator for tour operators. The Sprinter, an unrivalled blend of safety, reliability, versatility and luxury with a smooth, car-like drive. With its low lifecycle costs and fuel economy plus the new 2-year/unlimited warranty, it’s a tour operator’s best business partner. Different configurations and applications are arranged through approved body builders. What a way to see SA!
Mercedes-Benz Commercial Vehicles East Rand, 54 Denne Road Tel: 011 437 500 - www.cargomotors.co.za
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Jurgens-Ci fEATURE
and the Swing comes with a 12-volt water pump, vanity basin, 4.5kg gas bottle, 25-litre water bottle, and an exterior kitchen with a pullout sink and two-burner gas stove plus the option of a 19-litre microwave. The Swing also comes with a full tent and ground sheet as a convenient way to increase the living area of this stylish caravan. At the top end of the Sprite sits the Splash. It has everything that the Swing has plus even more space. The Sprint measures 3711 mm in interior length and the Swing has 4287 mm, but the Splash, an extensive 4933 mm. All three have an interior width of 2030 mm. The Splash range has a modular bolted chassis, easy-to-use parking jacks, and a 12 mm solid ply floor under that vinyl cushion flooring.
The light-grey body panels have an insulated sandwich-panel construction, and there is a fibreglass front and rear plus one-piece soffit and roof. There is also plenty of intelligently designed storage space, including tent-pole hatches, front hatches, overhead lockers and storage integrated into the island bed. “The new Sprite range is sure to prove as big a hit as all its long line of predecessors,” says Pretorius.
It is ideal for those who wish to invest a little less but enjoy the adventure even more
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FOR SAFARI
Jurgens Ci’s range is simply too big to mention every model. But if Safari is your thing, then Jurgens Ci’s Xplorer Xcell is the caravan for you. “It is ideal for those who wish to invest a little less but enjoy the adventure even more,” says Pretorius.
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The new and exciting model is absolutely perfect for families, he adds. It features a superbly neat slide-out kitchen with twoburner stove and kitchen sink with hot and cold running water. The kitchen unit is on roller bearings, so it slides in and out really smoothly and easily. To help keep the price down, the kitchen has no fridge/freezer, though it’s an optional extra many people will choose to have. For more information about Jurgens Ci visit www.jurgensci. co.za. Every Jurgens caravan is scientifically designed to deliver the greatest structural integrity at the lowest possible weight. Add to the aerodynamic efficiency and you have caravans that are easy to tow and handle on site. END
RENOLIT South Africa (Pty) Ltd PO Box 321 | 1947 Sasolburg | South Africa Phone 016 920 2806 | Fax 016 920 3220
01.02.2010 14:54:00 Uhr
SECURING
SoUTH AFRICA daphne du Preez, National Sales & Marketing Manager for G4S Secure Solutions (South Africa) talks about the challenge of fly-by-night operators and how SA’s security sector is evolving.
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G4S Secure Solutions fEATURE
G
4S is the global leader in providing integrated security solutions and the London- and Denmark-listed business has the biggest private sector workforce in the world, after Wal-Mart, the U.S. grocer. In South Africa, G4S can boast the most comprehensive national footprint, with a strong presence in all nine provinces. Its service offering includes security officers, security systems including CCTV, vehicle tracking, remote off-site monitoring, specialised services, including aviation security, and cash management solutions. It has undergone massive growth, both organically and through acquisitions. “The group’s financial position continues to be strong and despite continued challenging market conditions, the business has performed well,” says Daphne Du Preez, National Sales & Marketing Manager, G4S Secure Solutions (South Africa). “G4S is on target to achieve budget for 2010. Our new market businesses, which now account for more than a third of group profits, continue to achieve strong results. These factors combined with our strategy to deliver integrated security solutions give us confidence that we will sustain good progress into the next year. A number of South African hospitality businesses were disappointed with their net gains from the 2010 World Cup, but G4S is pleased with the additional revenue this event generated for our business stream. In line with our group strategy, G4S SA enjoyed growth in the technology and specialised services side of the business this year.” According to Ms Du Preez, the global recession has had an impact on every facet of industry, least not security, and it has resulted
in below expected organic growth within the group. Despite that, in the first nine months of 2010, overall group revenues grew by almost six percent at actual exchange rates, compared to the same period last year. South Africa, she adds, is a tough place to do business, especially where manned guarding is concerned. There are many “flyby-night” security companies who can offer low prices simply because they do not have the overheads that a large corporation incurs. These smaller companies, however, are often unable to provide the level of training, expertise, professionalism and even insurance liability that the larger companies do. “The manned guarding sector remains a low barrier of entry to market, so the country is flooded with over 5,000 registered, but unregulated competitors,” Ms Du Preez explains. “Most traditional manned guarding companies are, at present, attempting (most, unsuccessfully) to offer technology solutions to bolster profits and enhance the value they add to the customer. “Non-compliance remains the biggest challenge and threat to the integrity of the SA security market,” she continues. “It is difficult to stop the fly-by-night operators, who in almost all instances are non-compliant with regulatory and statutory requirements. “Through SIA, together with business, organised labour, such as Cosatu, Fedusa, Nactu and Government, there is a formal and strategic approach to remedy this age old issue.” One difficulty is that consumers are unable to make an informed decision about what security measures are right for them.
Despite continued challenging market conditions, the business has performed well
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G4S Secure Solutions FEATURE
“The systems market is dynamic, state-ofthe-art and ever changing, which creates uncertainty for some customers on how to make informed decisions on expensive solutions,” Ms Du Preez says. “Our challenge is to consult and educate the customer by providing him with a solution his organisation really needs, not what we think it needs. “The SA market is slowly moving towards the acceptance of the role technology solutions play within their risk environment.”
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Life in South Africa is tough. The rainbow nation suffers from one of the world’s highest crime rates. This isn’t lost on G4S or Du Preez. But it is a growth market. “The industry has an estimated spend of R55 billion per annum and is still growing,” says Ms Du Preez. “This sum is comprised of manned guarding services, systems solutions, which include CCTV and access control, as well as alarm monitoring and response and cash in transit services. “In terms of market trends, what we are seeing a move -- a slow move -towards having fewer security guards, but who are highly trained and up-skilled, complimented by an effective security technology system.” G4S has undoubted strength in diversity and continues to grow its service offering. It has moved from selling single service products to bundled products in the form of integrated service offerings that are specialised. “The recent acquisition of Skycom demonstrates our move towards building capacity and capability to provide theses specialized services across all sectors,” Ms Du Preez says. In the future, G4S sees fewer, but more compliant security companies operating in the market, offering a full range of security products and solutions on a more ‘consultative approach’ basis with the view to creating long-term partnerships. “Customers are looking for one company
to provide all their requirements,” she says. “This will create a’ lock-in’ scenario between customer and supplier, making it difficult for the customer to move from supplier to supplier. “Our organisation subscribes to the philosophy of adding value to our
customers,” Ms Du Preez adds. “G4S takes the time to understand our customer’s needs and strives to design customised integrated solutions to meet each customer’s unique requirements. We encourage the development of service level agreements, which are quantifiable and measurable and are punitive financially, if G4S performs below expected levels. “Our global reputation, strong brand, international experience and local expertise, provides additional peace of mind and value add to all our customers.” Concluding, Du Preez says that what sets G4S apart from the competition is that each and every employee lives the G4S Values, while integrity and passion run throughout the company. “We recruit only the best. Customer satisfaction is our core focus.” As the old adage goes, you get what you pay for. END www.southafricamag.com 115
your tourist ticket to a
LANDSCAPE
“Truly Memorable”, the slogan of Air Namibia, encapsulates a tourist’s experience of this country of singular beauty, yearround sunshine, and feeling of unconfined space. 116 www.southafricamag.com
Air Namibia fEATURE
W
ith its unspoilt landscapes and extraordinary variety of game, Namibia is attracting increasing international visitor numbers, drawn by its wide horizons and clear unpolluted skies. And Air Namibia is a leading player in introducing tourists to its hypnotic spell. The national economy is a four-legged enterprise: mining, agriculture, fishery and tourism. Namibia is very rich in natural resources with some minerals occurring exclusively under Namibian soil, and mining generates a third of the GDP and the major portion of foreign currency earnings. But tourism is moving up fast with annual visitor numbers around the one million mark. Namibia has 21 national parks and Protected Areas, and every year thousands of visitors travel to the country specifically to experience the abundance of wildlife to be found here, with excellent opportunities for game viewing and bird watching. Unsurprisingly the parks play a major role in nature-based tourism, and are Namibia’s most important tourist attractions, and predictably the European tourist market is one that Air Namibia will increasingly develop.
South Africa then seized control during World War I and administered it under a League of Nations mandate. A long struggle against rule by South Africa ended in 1990 with independence and emergence as Namibia. There is a strong German community here, and Frankfurt is Air Namibia’s main European base, with incoming feeder flights from capitals such as London, Paris and Rome. With 250,000 inhabitants, Namibia’s capital of Windhoek is the biggest city in the country, an attractive town at an altitude of 1650 metres in a beautiful valley bordered by the Eros Mountains in the north and the Auas mountains in the south. Towards the west, stretches the Khomas Highland to the Namib and the coast. Windhoek combines the modern city architectural style with that of the German colonial era, strikingly clean and with a cosmopolitan flare. The influence of the German language and culture is still present, with German restaurants and a German carnival. Although English is the official language, one can use German just about anywhere. Based at Windhoek’s Hosea Kutako International Airport, Air Namibia is whollyowned by the Namibian Government and positioned as a niche carrier serving domestic points within Namibia, the immediate regional markets of South Africa, Zimbabwe, Angola, Zambia, Ghana and Botswana, as well as the whole of Europe through Frankfurt. Its current fleet consists of two Airbus A340-300s, one Airbus A319100, two Boeing B737-500s and for some internal flights four Beechcraft B1900 Ds. As Wimpie van Vuuren Air Namibia’s Senior Sales and Marketing Manager points out, there are obvious challenges
Air Namibia’s vision is to be a safe, reliable, efficient and caring airline
POPULAR SPOT One third of all visitors come from South Africa, with the Germans holding second place followed the British, Italians and French. The German connection with this large and sparsely populated country - two million inhabitants - is historical. Germany took control of the area, which it called South West Africa in the late 19th century, and the discovery of diamonds in 1908 prompted an influx of Europeans.
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Air Namibia FEATURE
for a small airline company operating from within a nation with Namibia’s economic and demographic profile. Even so since inception - and in line with its mandate - Air Namibia has been making a positive net economic contribution to the national economy. Net economic gain is the gross value visitors carried into the country by the airline contribute to the economy, less the cost of Government support to the airline. Also within its contributing net is the airliner’s impact on employment in Namibia. Contribution to GDP comes in the form of visitor expenditure and the airline’s own expenditure in the Namibian economy through procurement of goods and services, well as related jobs created in resorts and general supporting industries.
SAFE AND RELIABLE Air Namibia’s vision is “to be a safe, reliable, efficient and caring airline, committed to meet the expectations of its customers, employees, business partners and its shareholder”. 118 www.southafricamag.com
Unsurprisingly, high standards of safety are the norm at Air Namibia, with performance reliability another given. Customer care is also seen as a hallmark of successful airlines, meeting customer expectations through the kind of professional, friendly and courteous service that gives the airline a competitive advantage over its competitors. “Air Namibia strives to provide excellent service onboard its flights, at check-in counters, baggage handling, points of reservation and ticketing and at cargo handling centers, as well as at all of our domestic and international airline offices,” says van Vuuren. “Efficiency is another driver because returns to shareholder’ investment are closely tied to it. No dynamic and successful organization can survive for long without high levels of productivity.” Each year one million tourists are drawn to Namibia, one of the most remote and inspirational places in Africa, drawn by its beauty, vast spaces, wild life and year-round sunshine. END
MODERN CONCEPT WEBSITE CREATIVE GRAPHIC DYNAMIC Behind South Africa’s top websites
eConsultant http://eConsultant.co.za | INT Tel: + 27 (0) 11 794 7233 SA Tel: 0861 PRO WEB / DRUPAL | info@econsultant.co.za
GFIP F irst
phase
nears completion Gauteng’s residents brace themselves for better roads as the first phase of the Gauteng Freeway Improvement Project (GFIP) nears completion.
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of
SANRAL fEATURE
G
auteng drivers have more reasons to smile than most. Why? Well (in case you haven’t been or read a newspaper in the last two years), there is something remarkable happening which will ease peak-hour traffic and improve the whole road network – some improvements, in fact, have already been made. Who has made these improvements possible? The South African National Roads Agency Limited (SANRAL), of course. SANRAL is busy working on the R15 billion Gauteng Freeway Improvement Project (GFIP), which will see freeways opened up to at least four lanes and in some cases, six in each direction. Other measures include improved interchange access, better lighting,
The province has developed beyond its infrastructural capabilities, with roads unable to keep abreast of increasing traffic demands traffic management strategies such as intelligent transport management systems including live cameras and electronic signs that supply up-to-date information, and an open-road electronic toll collection system. “Gauteng is the economic hub of South Africa,” says GFIP project manager Alex van Niekerk of the province that generates 38 percent of South Africa’s economy activity. “The province has developed beyond its infrastructural capabilities, with roads unable to keep abreast of increasing traffic demands.” The GFIP comprises numerous different phases to upgrade and implement new highways of an ultimate 560km highway network, he says. www.southafricamag.com 121
SANRAL fEATURE
The first phase, comprising the upgrading of 185km of the highways, is currently under construction and close to completion. “The GFIP concentrates on the N1 between Pretoria and Johannesburg,” says van Niekerk. “It also includes other major arteries such as the N3, N12, N17 and the R21 route from Pretoria to OR Tambo International Airport.” The portion of the N1 national highway between Johannesburg and Pretoria carries 180,000 vehicles every day and is just a small section of the 16,170km of major national roads overseen by SANRAL. “Bottlenecks at interchanges will be significantly reduced,” van Niekerk adds.
The relief is already evident, as motorists are enjoying much freer flowing traffic through the recently completed interchanges such as Malibongwe, William Nicol, Rivonia and Gillooly’s. A total of 34 Interchanges will be upgraded in phase one. “The first phase is expected to be finished in the first half of 2011, but over 80 percent of the project has already been completed,” van Niekerk explains. The remaining road upgrades, which are still in progress, include the Lynnwood interchange in Pretoria and the Allandale interchange in Midrand. In Johannesburg the Marlboro, Modderfontein, Linksfield,
BeNeFITS oF ToLLING oN The GFIP Road users pay for only the stretch of road used Footage from CCTv cameras is monitored by personnel at the Network management Centre that enables SANRAL to provide assistance and clear incidents much quicker electronic message boards provide traffic information
122 www.southafricamag.com
i-traffic website for live video feeds and pre-trip planning Four and up to six lanes per direction median lighting Towing services Free-flow of traffic under gantries – no stop start driving more time to spend at leisure
NATIONAL HIGHWAY MARKINGS cc
Services offered: -Road traffic markings – performance and non performance based -Airport and runway markings
Our company was established in 1964 under the name Universal Markings (Pty) Ltd operating under the auspices of Barlows. In 1986 the company was rebranded as NATIONAL HIGHWAY MARKINGS cc. The company inherited highly experienced staff, with years of service in the industry. Our offices, production plant, warehouse and workshop are based in Roodepoort Gauteng. In 1988, we were the first company in South Africa, to manufacture thermoplastic spray and screed material according to British Standards and modified to suit South African climatic conditions and also, to successfully apply the product. We continue to manufacture and apply this product with great success.
-Thermoplastic traffic markings -Road stud installation -Installation of preformed sheeting -Removal of existing road markings -Refurbishing machinery
Products supplied: -Road studs -Preformed thermoplastic sheeting -Raw materials -Road safety products -Associated products
Contact us: Tel: 011 474 9514 Fax: 011 474 3256 info@markings.co.za www.markings.co.za
SANRAL fEATURE
Edenvale, Kraft, Atlas and Bapsfontein interchange. “The project has suffered delays but is on target for 2011,” van Niekerk says. “One of the big challenges has been the acute shortage of bitumen in South Africa, which is used to produce asphalt, which is used in road construction.” Van Niekerk says that the R21 airport road will be fully completed by the end of the year, with lane availability during the holiday period restricted on other roads owing to the bitumen shortage.
OPEN-ROAD TOLL COLLECTION What makes the project unique is that SANRAL is set to implement an open-road toll collection system. 124 www.southafricamag.com
The first phase is expected to be finished in the first half of 2011, but over 80 percent of the project has already been completed
“We obtain funding in two ways,” says van Niekerk. “The first of these are grants from the National Treasury, which are used to fund non-toll roads. The remainder of the roads are toll roads, which are funded from borrowings on the capital and money markets.” The revenue received from tolling will be ring-fenced, he says. “The money will be used for the repayment of the debt incurred to complete the GFIP, and for maintaining and operating the upgraded road network.” He adds that the estimated 50c/km-plus toll fee, as was indicated in 2007, will also be used to pay for the value-added services to become available on the Gauteng road network once tolling goes live, such as the provision of tow trucks,
LEADERS IN TRANSPORT INFRASTRUCTURE MANAGEMENT
www.tolcon.co.za improved lighting, as well as stand-by medical assistance. The system also has to finance the rollout of further phases of the GFIP, which SANRAL will initiate in 2013. Kapsch, an Austrian-based company, won the contract to implement and operate the Gauteng toll collection system, along with its Cape-based partner, Traffic Management Technologies (TMT). Van Niekerk says that high traffic volumes (between 100,000 and 200,000 vehicles a day) make a conventional toll impractical, so the best way to monitor and control payment is by means of electronic toll technology. “Tolling will be introduced on the Gauteng Freeway network,” he explains. “A number of overhead toll gantries will be erected along the GFIP route in order to collect the toll fees. This ultimately means that the road users will only pay for the kilometres travelled -calculated by the number of gantries passed -- and not for the entire stretch of freeway that is tolled.” This will be Africa’s first open road toll collection system and the biggest
implementation of its kind in the world. Van Niekerk points to countries like Chile as a great example of how this system works and benefits people. It will help ease congestion and delays in travel time, he says. “The open road toll collection system has no physical toll booths,” van Niekerk explains. “It is a multilane, free flow form of electronic collection that allows vehicles to pass through toll points without having to stop or slow down. On the GFIP network, the overhead gantries will be fitted with the toll collection equipment that will recognise an e-tag fitted in each vehicle and money will be deducted from a user’s registered e-toll account.” He says SANRAL is still optimising its discount model but that motorbikes, frequent travellers, off-peak travellers and public transport operators will receive a discount, as will e-tag holders. “Users only pay for the portion of road they use, calculated by the number of gantries passed,” van Niekerk stresses. END
Discourse
CIVIL
Jane Bordenave talks to James Popper, Managing Director of Bophelong, about success and the challenges it is facing now.
126 www.southafricamag.com
Bophelong fEATURE
A
t just over 26 years old, Bophelong is a real home-grown success story. The company was founded by Bryan Westcott as a family business in partnership with his brotherin-law, and chartered accountant Andrew Vos. Originally, the firm was engaged in very small-scale work, such as building driveways and shopping centre car parks and has since grown to be involved in construction works for the Soccer World Cup. The organisation is based in Randburg, Gauteng, and close to 90 percent of its work is carried out in the province. The balance takes place in the Limpopo Province. The company’s client base is apportioned according to a 70:30 ratio, with the majority of its work coming from the public sector, and the balance being sourced in the private sector. As James Popper, Managing Director at Bophelong, explains, this ratio has been important for the company’s growth, “work for municipalities, such as building roads, is a good, steady, reliable source of income,” he says. “As recently as 15 years ago our maximum turnover was R20 million – now it is R200 million,” a growth that has been fired by the investment of the South African government. Working on government tenders has also had a sheltering effect when the recession began. “We were very lucky having the football World Cup in South Africa and for us it really helped to maintain turnover,” says Popper. “These projects continued for a time even after the final whistle was blown at the last match. However, once they had gone, it was like falling off a cliff - there was just no work for anyone. Unfortunately the situation lasts today and everyone is scratching around for work, which has increased the level of competition.Three or four years ago, when
Sustainable working practices are becoming a big part of our business today
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Bophelong fEATURE
Some of our competitors are structured in such a way that they are unable to take on contracts smaller than R50 million
you arrived for a site visit on a R50 million project there would have been three or four other contractors looking to put in a bid. Now, at a similar location, we will be up against 30 or even 40 other companies and this is a change that took place virtually overnight.” To overcome this the company is focussed on securing many smaller contracts. Previously, the average value of contracts Bophelong were bidding on and winning was in the region of R50 million, whereas now it is closer to R10 million, although the company can go as low as R1 million. “Some of our competitors are structured in such a way that they are unable to take on contracts smaller than R50 million,” 128 www.southafricamag.com
says Popper. “Luckily our overhead structure is relatively low so, despite having grown significantly since our founding, we can still do these smaller types of jobs. This is part of our survival strategy for the next year, so that we are able to at least generate some profit, even if it is fairly low.”
MENTORShP & TRAINING
Staff training is extremely important to the firm and it has taken exceptional steps to ensure its workers have the training they need. For manual workers, such as labourers, semiskilled operatives and artisans, Bophelong has established its own in-house training company, Abasizi Contractor Development Services. This training is generally delivered
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SPECIALISTS.
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Bophelong fEATURE
on-site, emphasising the importance of putting knowledge into practice and taking a ‘learning-through-doing’ approach. People whose work is carried out off site, particularly those at managerial level, are sent away to take external courses. “We believe in continuous mentorship and providing opportunities to upskill on an ongoing basis. No one ever stops learning and our training programmes reflect that,” explains Popper. When it comes to green business, the organisation has many processes in place to make its operations as environmentally friendly as possible. “Sustainable working practices are becoming a big part of our business today,” says Popper. “If you demolish a building you cannot just knock it down and take the rubble to some kind of
dump site. To take care of this waste we have mobile crushers that we can move from site to site, crushing waste material and then using it in the layer works of any platforms we are building or in new roads.” The company has found that taking this approach provides both operational and cost benefits. “Having our own crushers and processing the material ourselves on site, is a lot cheaper than removing the old waste rubble and then bringing in new material to effectively replace what was already there. As such, this is a very important part of our strategy.” As well as recycling demolition waste, the firm also ensures that its mechanics dispose of old oils according to the environmental laws.
We believe in continuous mentorship and providing opportunities to upskill on an ongoing basis
130 www.southafricamag.com
(Tel) 011-609-6443 (Fax) 011-452-6112 (Cell) 083-229-7885
Hard Hat Equipment Hire has established itself as a leader in the hiring of small plant and equipment to the construction industry. We are driven by a desire for excellence in everything that we do, and through our expertise, experience and strong commitment to providing exceptional service, we have positively contributed to the growth and performance of our customers. Hard Hat proudly holds a Level 2 Value Added BEE Status. We supply the following: > Compaction Equipment > Demolition Equipment > Concrete Equipment > Power Tools > Pumps > Generators
The company’s safety and environmental officer oversees other elements of on site environmental importance, such as ensuring silt is not allowed to build up and pollute the local storm water system.
WORKING WELL UNDER PRESSURE What really sets Bophelong apart in the eyes of its clients, other than its ability to successfully take on projects big or small, is that it can work well under pressure, delivering projects on time, within budget and according to specification. The level of customer satisfaction in this area is so high that the company has won contracts even when its bid has been higher than some competitors’. It also tries to avoid the escalation of any problems, preferring instead to work together with Consulting Engineers and the client to overcome these challenges. “If you start putting in claims and getting lawyers involved, it can leave a very bad taste in everyone’s mouth. Of course there are some occasions where
this is unavoidable, but if there is any way we can avoid this, we do, and we really do see the legal route as the last resort.” Popper sees the future as something of a mixed picture. “It is always difficult to gaze into the future and make predictions,” he says. “However, there is one thing we are certain of – that the coming year will be very difficult. When we had the World Cup, it was a different world, with many, many large contracts on offer. Since then the recession has caught up with South Africa and work has all but dried up. We don’t expect to see a recovery until late 2011 but, when we do, we are expecting things to pick up well.” Once the market does come back, Bophelong does not want to pursue growth at the expense of ethos. “We don’t want to grow to be huge and then be taken over by another company, that’s not what we are about; we want to remain a medium sized business and serve our customers and staff well.” END
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