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1PUBLISHED BY : WOOTA PUBLISHERS WBHO revenue up but AND PROJECT subdued West African mining weighsTEL: +27 11 483 0860FAX: +27 86 601 9195 WBHO ’s revenue for the six months CEO Louwtjie Nel said.EMAIL: [email protected] to December rose 11.3%, butWEBSITE: operating profit fell 15.1% and Subdued mining activity affectedwww.developomentsnews.co.zaww.detsnews.co.za headline earnings plunged 20.4%, revenue from the civil engineering the construction group reported on division. While building and civilOFFICE NO. 4 ACROPOLIS, Monday. engineering operating profit rose to107 LOUIS BOTHA, R152m from R139m in the previousORANGE GROVE. The fall in earnings was mainly period, operating margin fell because of losses from Capital Star marginally to 4.3%.P.O. BOX 46593 Steel, its steel pipe factory inORANGE GROVE Mozambique, and from the disposal The group said operational and2119 of Symo, a shelving business within contractual complexities of largeJOHANNESBURG CapitalAfrica Steel. civil projects, together with a lengthySOUTH AFRICA claims resolution process, had “This is the second reporting period prompted a more conservativeDESIGN AND LAY OUT OF THE MAGAZINE in a row in which WBHO has approach towards profit recognition. reported increased revenue and In coastal areas, markets remainedMWK DESIGNS lower earnings,” Stephen Meintjes, stable and its divisions performed head of research at broker Imara SP largely in line with expectations.+27 83 265 5460/5406 OR +27 76 701 7177 Reid, said on Monday. In the last financial year the culprit was Revenue from the Western CapeDEVELOPMENT NEWS is a journal of projects provisioning of R91m for collusion shot up 29%, mainly on revenueDevelopment News in Africa and has several Special penalties. from the Kathu solar farm project,Stand Alone Publications in different sector industries continuing projects at the Victoria &, mainly in South Africa. We aim at high standards of Poor mining activity in West Africa Alfred Waterfront and residentialquality of the services we offer advertisers as well as affected both revenue and profit flats. In KwaZulu-Natal, provincialreaders . We have established impressive distribution from the roads and earthworks hospital work at Empangeni,channels for the publications we produce. These division in the period under review. commercial offices in Umhlanga andinclude Government departments, relevant Operating profit in the unit plunged a Transnet pipe project in theprofessionals in different industries as well as leaders 23% as margins slipped to 8.8% in harbour were the significant revenuein the corporate sectors so as to provide maximum the period from 10.7% last year. contributors in the six-month period.value for involvement with us. Architects, PropertyDevelopers, Contractors, Project Managers, Quantity But 15% growth from that unit’s In the Eastern Cape, construction ofSurveyors, Land Surveyors, Engineers and Mining South African businesses partially the FAW truck assembly plant in theIndustry role players are our major readers and offset the losses. In addition, Coega Industrial Development Zoneeditorial contributors. To complement our professional revenue from Botswana and near Port Elizabeth was nearingeditorial team we also source our editorials from the Mozambique was stable. completion. In addition, thebest journalist in other relevant industries. construction of the business school The group said its building and civil for the Nelson Mandela Metropolitan engineering division largely drove University was progressing well. the growth in revenue. This was as a result of sustained improvement in Australian revenue from subsidiary the South African building sector, Probuild fell 6% in dollar terms, but most notably in Gauteng. “solid performance” from its WBHO civil unit, which grew revenue 67%, Retail projects in West Africa, offset the drop. including a mall in Ghana, further boosted revenue growth. But about half of the revenue increase related to the full consolidation of Capital Africa Steel in the period, WBHOThe Publisher does not accept any responsibility forthe accuracy or authenticity of the contributionscontained in the Magazine and advertisements.Views expressed by the contributors are notnecessarily those of the Publishers.© All rights reserved 1

SAXENI -FOSKER FEATURE We utilize mostly our own Established in 2008, SAXENI is a South African WHAT WE OFFER YOU equipment on projects of owned and operated company, based in Sundra, which a couple are listed Mpumalanga. We function as a multi disciplinary Project managementbelow. Our Current fleet of contracting and management concern in the Turnkey projects vehicles is in excess of 80 mining and construction industries. Construction management and installationunits and expanding as the Strategic alliances industry demand for our Because our core personnel have been working together as a team for the past ten years, our Range Of Services work increases. collective ability and expertise enables us to deliver on our mission statement. Overland conveyor systems Dome installations Heavy lifting and rigging Stacker and reclaimer installation Process plant installation and material handling design Plant civil works and Bulk Earthworks Steel fabrication Steel and mechanical piping installation HDPE Piping Electrical and C & I Eskom HV line installation All personnel are actively involved in the in day to day activities of the Company. Safety and Quality Saxeni is a Black Ecomonic Empowerment SAXENI management and workers are Company, with Managing Member Mr Samuel committed to safety. Our strive is “TARGET Makolane holding a 26% Shareholding in the ZERO” Even though SAXENI is not accredited company . Our current B-BBEE Status is Level 2. with ISO 9001, we comply to all standards and procedures, and will accommodate reasonable We are committed to supplying good quality requests from our clients, given the uniqueness products and superior service to all our clients. and nature of the project.2

Tel: +27 (0)87 944 2082 Tel: +27 (0)13 661 1773 Fax: + 27 (0)86 743 1869 Email: [email protected] Website: www.saxeni.co.za 72 Modderfontein Rd Plot 408 SUNDRA 2200 South Africa P.O. Box 269 SUNDRA 2200 South AfricaSaxeni is a management concern, providing both services and equipment to the mining and construction industries.Our strength lies in the diversity of our personnel, providing expertise on project management, construction management, plantinstallations and partnerships in strategic alliances.We pride ourselves on our multi disciplinary team able to offer advice, management services or the infrastructure needed in thecomplex world of mining and construction.WHAT WE OFFER YOU RANGE OF SERVICES Project management All types of process plant installations Turnkey projects Overland conveyor systems Construction management and installation Dome installations Strategic alliances Heavy lifting and rigging Construction plant sales and hire Stacker and reclaimer installation TO BE THE MOST PROFESSIONAL SERVICE PROVIDERTO OUR BUSINESS PARTNERS … AND BE THE BEST IN EVERYTHING WE DO. 3

Kenya’s Thika superhighway leads tomore mega-projects The 50 kilometre-long Hari Ramesh, chief resident engineer for the 50.4 The construction of the houses was done by China WuThika superhighway in kilometre-long Thika superhighway in Kenya, said its Yi. This same company is constructing the KCB Bank completion was an engineering feat as it was done Centre in Upper Hill, Nairobi, one of the first buildings Kenya, which was when the road was still in use. that will utilise green technology to reduce demand for funded by AfDB but power and water. The superhighway is one of the biggest infrastructure constructed by projects by Chinese companies so far. It was handled Mr Ramesh said a project of the magnitude of Thika Chinese firms by SinoHydro Corporation, China Wu Yi and Sheng Li superhighway is not only about easing transport but is Engineering Company. also about technology transfer. SinoHydroCorporation, China Wu The involvement of the Chinese in mega infrastructure For instance, under the construction phase, projects in Kenya appears to be increasing. China engineering students and professionals from Kenyan Yi and Sheng Li Bridge and Road Construction has been chosen as universities and technical colleges would beEngineering Company the contractor of the standard gauge railway line. embedded with the project engineers to improve their on-the-job skills. Anhui Construction Engineering Group and China National Aero-Technology International Engineering He said the project also received delegations from Corporation are the chosen contractors of the across Africa as project planners mainly drawn from Greenfield Terminal at Jomo Kenyatta International the public sectors sought to learn about the project. Airport in Nairobi. “This is a historic infrastructure project for Kenya and it Chinese companies may also benefit from contracts to is vital that the mistakes made and how they were or develop the LAPSSET infrastructure in particular the are being resolved become future reference points,” pipeline to move oil from Uganda, Kenya and South said Evaristus Irandu of the University of Nairobi, Sudan to the yet to be constructed Lamu Port; the Department of Geography and Environmental railway line linking Ethiopia to Lamu Port and other Studies. related infrastructure. While much of the co-operation has been in Analysts see infrastructure and trade as the biggest infrastructure development, the Chinese are seeking drivers of China-Africa relations. to widen the scope to other sectors, according to Chinese ambassador to Kenya Liu Guangyuan. “The ties between China and Kenya will continue to grow because of the converging interests in One key focus is the media. “Nowadays, both the infrastructure, innovation and natural resources,” said Chinese and the African people are eager to Denise Kodhe, the executive director of the Institute understand each other more than ever before. This for Democracy and Leadership inAfrica. trend presents vast opportunities for China-Africa media co-operation,” said Mr Guangyuan. Analysts said there is well co-ordinated co-operation between Chinese public and private institutions in He said that the Chinese government will this year set their competition with the West to win big up the China-Africa Press Exchange Centre in China infrastructure contracts in Africa especially where where East African media houses have been invited to bilateral concession loans have been provided by set up offices so that they can tell African stories to the Chinese public financial institutions. Chinese people more directly. Pricing Four Chinese state media houses have also established headquarters and branches in several Chinese companies give competitive prices for African countries, with state news agency Xinhua projects, which is an added advantage. This has seen having a presence in more than 40African countries. them win projects financed by Western financial institutions and multilateral bodies like the African China has also established several Confucius Development Bank, which financed the Thika Institutes to teach Chinese language and culture in superhighway. Africa and will start offering masters degrees in Chinese language this year. READ: China’s lending to Kenya hits $750m Another advantage that Chinese firms have is that their government uses its financial and technology muscle to give Chinese companies an edge inAfrica. For instance, in 2009 the China Development Bank gave a loan to Kenya construction company Erdemann Property for the construction of 586 houses.4



President Uhuru Kenyatta officiatesconstruction of JKIA passenger terminal. The construction of the Sh55.6 billion Greenfield annual 12 per cent per annum. Terminal at the Jomo Kenyatta International Airport is finally set to start after years of controversy. By 2020, the passenger numbers are expected to almost triple to 17.1 million and grow by a further 100 President Uhuru Kenyatta officiated the ground per cent to 35.3 million by 2030. JKIA is projected to breaking ceremony for the new terminal that will contribute over 10 per cent of the GDP through further push up the status of Kenya as a regional support of tourism, horticulture and other sectors. aviation hub. The Greenfield Terminal is set for completion in 2017. In August last year, Mr Kimunya came under fire for cancelling the tender for the construction of the new The proposed terminal has been a battlefront for terminal. Kimunya was protesting the award of the competing interests whose fights for the control of the contracts to Anhui Construction Engineering Group tender has spilled into boardrooms, courts and even and China National Aero-Technology International the National Assembly. The terminal was initially set to Engineering Corporation, which had been awarded start in early 2012 but this was halted after transport the contracts after clearance by the Public minister Amos Kimunya argued the selection of the Procurement and Oversight Authority. The awarding two Chinese firms that were to start construction had of the contract to the two firms might have cost former been unprocedural. Managing Director Stephen Gichuki his job. “The new terminal will be constructed to increase Though he served a first three year term, he had been annual handling capacity by 20 million passengers. sent on compulsory leave in August last year on Construction begins in December 2013 and will be allegations that the award of the contract was completed in 2017,” said the Kenya Airports Authority irregular. This was however, overturned by the in a statement. Industrial Court that ruled the board should reinstate him But soon his luck would run out, because he was The facility will increase JKIA’s passenger handling never considered for a second term. Instead, the capacity to 20 million passengers. The current airport board sent him on a terminal leave in August, two was originally designed for an annual capacity of 2.5 months before his term expired. This, the board had million passengers. Presently it handles 6.5 million – said, was in line with hiring rules that required Mr or three times more than it was designed to handle, Gichuki be away so as not to influence the hiring leading to difficulties in meeting international process. The Greenfield Terminal will transform JKIA customer service standards. into among the largest airports inAfrica. PASSENGER TRAFFIC Passenger traffic at the airport has been growing at an6

Cresta Shopping CentreNMC commenced with the R250 million upgrade of shopping centre to allow passengers to hop on and Cresta Shopping Centrethe Cresta Shopping Centre in April 2013. The off. One of the most popular viewing spectacles was has served as one ofproject is being executed in two phases. the turning of the train on a giant turntable on the Johannesburg’s prime other side of the track. family shoppingPhase I, valued at R122 million, comprises the destinations since 1977.lowering of an existing road level by 5m to allow for While the train no longer runs, Cresta continues to Locals and internationalthe existing bridge to over the road to be lowered – innovate and a lot of additions were made to this visitors alike willthis will create an extra storey and open up an shopping centre in Johannesburg in recent years. remember the modeladditional 600m² retail space. train, which in recent This has secured Cresta’s reputation as a favourite years has made place forPhase II, valued at R128 million, comprises the family shopping destination for locals and an ever-expandingrefurbishment of 111 shops and complete upgrade of international visitors alike. The centre boasts a large selection of excitingall open areas at lower, ground and upper level to A- cinema complex and a theatre and restaurant entertainment, dining andgrade finishes. complex, which all add value to an already great shopping facilities. experience.For a safe and relaxed shopping experience in SouthAfrica’s bustling metropolis of Johannesburg, the cityboasts a number of enticing and accessible malls,with Cresta Shopping Centre being one of the largestshopping attractions in the Southern hemisphere.Built in 1977 the centre has gone through a numberof refurbishments and nowadays it offers everythingyou can expect from a modern shopping experience.Because of this Cresta Shopping Centre is a perfectdestination for international business people orholidaymakers who find themselves with some timeto spare in Joburg – the economic engine of sub-Saharan Africa.Cresta’s three floors feature all South Africa’sbeloved chain stores, like Pick 'n Pay, Woolworths,Edgars, Truworths and Ackermans. Banks, specialtyshops, food outlets and plenty of fashion boutiquescomplete the shopping experience in the centre,situated on the border of the Northcliff and Crestasuburbs.Older SouthAfricans and foreigners who have visitedJohannesburg in the past will fondly remember themodel train, which ran through the mall. The trainwould stop at various places in the Johannesburg 7 5

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South Africa on a growth curve different fromNigeriaThe Nigerian economy has not grown by about 80% Among other things, this will require strong regional As the rebasing ofovernight. To calculate GDP, government hub economies that can drive the creation of markets Nigeria’s GDP has beenstatisticians use the price of goods and services from with greater critical mass, coherence and density of signalled for a long time,a \"base year\" as a point of reference. As this base economic activity. the result is notyear gets older, and the structure of any dynamic surprising; however, theeconomy changes, so the GDP calculation will South Africa’s own long-term economic growth statistical recalculation ofbecome more inaccurate. For this reason, South prospects could be inherently linked to this the size of the NigerianAfrica recalculates the base every five years. In integration process. Access to expanding consumer economy must be lookedcontrast, the previous Nigerian base year was 1990, markets across Africa could be a critical driver for at in contextso what we are seeing is a realignment with reality. South Africa’s economy, which is now essentially consumer driven. It is no coincidence, therefore, thatQuestions whether this statistical calculation can investment by South African companies in FDIprovide an indication of the quality of the economy projects in the rest ofAfrica has grown at a compoundcan be answered by the fact that South Africa’s GDP rate of more than 40% since 2007. Companiesis about the same size as Austria’s; it is larger than headquartered in South Africa have invested in theDenmark and Finland’s; it is twice the size of second-largest number of FDI projects in NigeriaIreland’s and almost three times the size of New over that period, particularly in consumer-facingZealand’s. The size of GDP taken into account with sectors such as retail, consumer products, financialthe structure and character of South Africa’s services and telecommunications.economy is very different from these so-calleddeveloped economies. Similarly, South Africa’s Ultimately, the rebasing of Nigeria’s economy simplyeconomy is at a very different point on the confirms its status as a dynamic growth market. Itdevelopmental curve from Nigeria’s — their reinforces the broader African growth story andinfrastructure, financial systems, manufacturing positions Nigeria and South Africa ascapabilities, quality of services, retail markets and complementary regional economic and investmentincome levels, to name some of the relevant factors, hubs for West Africa and Southern Africaare incomparable. respectively. This is reason for celebration, rather than angstIn terms of relative investment attractiveness, we arevery positive about Nigeria and, for us, the GDPrebasing (and continuing growth of the economy)simply reinforces the investment proposition. Butinvestment attractiveness is about far more than thesize and growth rates of an economy. One has toweigh up the potential rewards against the risks andchallenges to doing business. On any kind ofobjective risk-versus-reward opportunity analysis ofAfrican markets, South Africa will be among the best-positioned markets for the foreseeable future. This iswhy South Africa remains by far the leadingdestination for greenfield foreign direct investment(FDI) in Africa, attracting almost 25% of all projectsinto sub-Saharan Africa since 2007 (compared with9% for Nigeria).However, as Africans, we feel that there is a realdanger in creating a false sense of competitionbetween two of Africa’s powerhouse economies.This kind of narrative serves to further entrench thehistorical marginalisation of Africa’s still fragmentedmarkets, and is damaging in the context ofrepositioning Africa as a regional destination forinvestment. This is a critical point, because as muchas nations compete for investment, so do regionsand, despite improving perceptions, Africa does stillhave much ground to make up relative to otherregions.With the shifting dynamics in the global economy, webelieve Africans have a unique opportunity to breakthe structural constraints that have long marginalisedthe continent. However, this will be achieved only byfashioning greater regional coherence from thepresent patchwork quilt of 54 sovereign states. 9

Pyo-cote - Specialised Fire ProtectionCoatings KBS Fire Retardant Coating PETROCHEMICALAND CHEMICAL INDUSTRY For preventing fire propagation along grouped electrical cables. Tetrok C is a factory premix material that can be spray KBS Coating is a tough, water and weather resistant, or trowel applied. non-intumescent cable coating used world wide since 1967. KBS Coating prevents fire propagation along Typical applications are structural steel, LPG and vertical and horizontal cable bundles and prolongs other combustible storage vessels, as well as a fire circuit integrity without affecting the current carrying proof ducting around instrument and electrical cables. capacity. Tetrok C applied to structural steel in a chemical plant. Pyrosafe Intumescent Fire Protective Coating Available as a solvent based product \"Pyrosafe SB\" or Tetrok C applied to a LPG Vessel. Fire rating 120 a water based product \"Pyrosafe WB\". Pyrosafe when minutes in accordance with NFPA58. exposed to elevated temperatures expands to form an insulating char. COMMERCIAL BUILDINGS For fire proofing of structural elements in building, Typical applications are: mainly steel, Tekrok S is a low-cost, spray-applied Fire proofing of structural steel - fire rating of 60 vermiculite plaster providing up to 120 minutes fire minutes. protection. Fire protection of timber - \"0\" flame spread rated Class Tetrok S applied to structural steel in a shopping mall 1 in accordance with SABS 0177 part 3. upgrade. Fire proofing of plastic pipes and electrical cable ACOUSTIC AND DECORATIVE CEILING installations in areas not subject to moisture or MATERIALS industrial chemicals. Mandoval Acoustic Spray is a vermiculite based Pyrosafe allows for: material with a proven history of successful sound Fast contact scheduling. control. Minimum amount of interference to the other contract MANUFACTURING activities. The Tekrok products are manufactured by Mandoval Vermiculite cc, a company with over 35 years Provides an architectural finish to the steel. experience in the development of insulating and fire proofing plasters. Application of Pyrosafe to the structural steel at Johannesburg International Airport Pyrosafe allows Mandoval Vermiculite is an accredited ISO 9001:2000 for fast contact scheduling, minimum interference to manufacturing plant with all products having been other contact activities and provides a decorative officially tested by the SABS in accordance with finish. national & international standards. Fire Proofing and Acoustic Plasters For the special needs of the Petrochemical, Chemical and Building industry we are able to offer a number of specially formulated vermiculite based fire proofing plasters.10

Green Building Council South Africa winsaward for Green Street initiativeFor the past 23 years the eta Awards have been less need for heating fuels like paraffin, coal and The Green Buildingrewarding excellence and exceptional effort in the wood, which means reduced health problems and Council of South Africa ismore efficient use of energy by individuals, students, fire safety risks for these homes,” explains the winner in thecompanies or other institutions and this year the Rushmere . Community Category ofawards recognised the efforts of the GBCSA in the this year’s Eskom etaCommunity category. These houses also received energy efficient lighting Awards for their Green in the home and LED street lights, insulation roof Street initiative in CatoThe historic township of Cato Manor in Durban was paint and ceilings, heat insulation cookers and other Manor, Durban – asthe location for South Africa’s first ‘Green Street’ green interventions. announced at the awardupgrade in a low-income area. Completed ahead of ceremony which tookthe COP17 international climate change talks in late Brian Wilkinson, CEO of the GBCSA says that it is place on 04 December2011, thirty low-cost houses in a small cul-de-sac testament to the success of the project that it has 2013.road received a green upgrade, otherwise known as been recognised and awarded by Eskom’s etaa retrofit. 26 more houses were completed after COP Awards. “We are pleased and proud to receive this17. accolade alongside the Cato Manor Green Street community. South Africa must increasingly moveIt was the first comprehensive green street ‘retrofit’ in towards more energy efficient and sustainablea low-income housing area in South Africa. “We practises and the GBCSA will continue to strive forwanted to demonstrate how green houses can influence over the built environment.”contribute to a better quality of life and we haveachieved this,” says Sarah Rushmere, SpecialProjects Manager at the GBCSA.“Some of the highlights and positive outcomes fromthe project include residents having hot water on tapfor the first time through solar water heating; a savingof up to 27% off the cost of electricity; access to waterthrough rainwater harvesting - with a knock on effectof food security through irrigation; improved thermalcomfort through better insulation and ventilation; and 11

SA construction industry remains underpressureThe Asia-Pacific region SOUTH Africa’s construction industry is not out of the while outstanding claims on the project are a drag onhas been a lifesaver for woods yet, despite data pointing to an upward trend. the group, he says. big South African In the fourth quarter of last year construction But Group Five, which operates in African, Middle construction firms, confidence rose to a new five-year high, with a Eastern and Eastern European markets, says despite including Aveng and recovery in construction activity and moderation in continuing frail construction markets in South Africa Murray & Roberts. tendering competition. and the rest of Africa, mining and cross-border energy Chinese demand for projects, and Africa’s general infrastructure needs are Australian minerals However, the balance sheets of major JSE-listed likely to boost the pipeline of work. has complemented a construction and engineering groups are still showing boom in oil and gas strain. Unlike Aveng and listed peer WBHO, in the six months projects in the region, to December Group Five has seen revenue from despite the global Aveng’s Australasia and Asia segment is delivering continuing operations shoot up 55.7%, with headline four times the value of its home continent. The earnings per share soaring 40.7%. South Africa still recession. company says it has seen \"no material improvement\" accounted for 82% of the secured construction and in SouthAfrican infrastructure spending. engineering order book. But as China’s commodities demand tapers in favour CEO Mike Upton says he expects to see \"massive of consumer-led economic growth, and major oil and growth\" in African power and oil and gas projects, gas projects near completion, Aveng is turning to along with a resurgence in mining. \"But we are still countercyclical infrastructure spending in places such really waiting for a big roll-out of infrastructure in South as Singapore andAustralia. Africa,\" he says. Legacy issues at home and abroad still echo or In its interim results to December, WBHO’s operating remain, though Group Five says legacy costs in the profit fell 15.1% as headline earnings plunged 20.4%, Middle East that were once a heavy burden are now even as revenue climbed 11.3%. The group has had \"really not material\". In the meanwhile, its transport operational problems at its Capital Star Steel pipe investment and concession projects in Eastern factory in Mozambique, and lost money on the Europe and Africa have come to exceed 25% of core disposal of a shelving business. In addition, it has group operating profit. seen poor mining activity in WestAfrica and generally. But Aveng’s Grinaker-LTA construction and CEO Louwtjie Nel says that work has \"dried up\" on engineering division in South Africa and the rest of West African mines. This is also a concern for the Africa is still executing contracts at \"inadequate group in South Africa and Australia, as mining is a margins\". It says fixed costs are still too high in the significant chunk of profit, he says. business, while there have been delays in the resolution of project claims. Labour disruptions in But WBHO saw 15% revenue growth in its South South Africa directly cost the group R96m in the past African businesses in the period. It says building and six months. civil engineering largely drove this as a result of sustained improvement in the South African building Meanwhile, the roll-out of big projects in the sector. government’s R4-trillion infrastructure plan has largely stalled, as major construction and engineering Group Five derives 71% of its building and housing work on Eskom’s new Medupi and Kusile coal-fired revenue from large-scale public-sector housing mega power stations comes to a close. projects, including low-cost housing. While it says there have been significant delays in the awarding of In its interim results to December, Aveng’s headline public-private partnerships and conventional public- earnings per share plunged 21%, even as overall sector tenders in South Africa, it has mitigated this by revenue rose 11%. securing contracts in public transport, hospitals, prisons, magistrates’ courts and affordable housing. Aveng Grinaker-LTA is targeting break-even only in financial 2015. New CEO Kobus Verster says the past Mongezi Mnyani, CEO of the National Home Builders six months have been a period of consolidation and Registration Council (NHBRC), says that the body repositioning of the group’s diverse operations. But he works closely with government agencies, including also says there is \"a way to go\" before it reaches its full the Department of Trade and Industry, the Council for potential. Scientific and Industrial Research, and the Construction Industry Development Board. \"Following on from trading updates, it wasn’t much of a surprise when earnings came out,\" Suraj Sookdhew, The state-mandated body also works with private- head of portfolio management at RMB Private Bank, sector companies including Group Five and says. The Queensland Curtis liquefied natural gas ArcelorMittal South Africa, the country’s premier steel pipeline and facilities project in Australia has required maker, which are involved in modular housing heavy levels of financing by Aveng in recent years, developments.12

ArcelorMittal global subsidiaries make insulated with the fears of the market,\" says Mr Mnyani.steel panels to construct low-cost housing, schools,shopping centres and factories. The group has \"Parliament is keen to utilise such systems withalready built schools from these materials in regard to the housing backlog.Tshwane and the Eastern Cape, and will do soacross all of the country’s provinces. \"I think we have been disjointed as government … but now we are starting to see co-ordination amongThe NHBRC has been tasked by the Department of government itself,\" he saysHuman Settlements to co-ordinate building work inmunicipalities and provinces.Its Eric Molobi Housing Innovation Hub inSoshanguve, near Pretoria, supports innovation inaffordable, quality housing for South Africa’s mostvulnerable citizens, using technologies developedboth in SouthAfrica and internationally.Mr Mnyani says there has been a lot of improvementin low-income housing over the years. The NHBRCtrains and dispatches inspectors to projectsnationally.The laws governing the building of habitablestructures have also changed to accommodate newtechnologies. In this regard, Mr Mnyani says private-sector construction and engineering companies andindustry bodies play a critical role in qualityassessment and ensuring such buildings will standthe test of time.\"We have seen that even the banks are starting toaccept them. I think, bit by bit, we will be able to deal 13

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Green Building Council celebrates 50 GreenStar SA certifications South Africa’s green The milestone was marked at an event held in green building is something that should be foremost inbuilding movement has Johannesburg on April 10 by the Green Building everyone’s minds – from government, to developers Council SouthAfrica (GBCSA), which was established to the average man in the street. gained significant in 2007 to lead the transformation of the property momentum with the sector by ensuring that all buildings are designed, built According to McGraw and Hills’ World Green Building and operated in an environmentally responsible way. Trend survey (2013), 51% of South Africa firms expect achievement of 50 to be building green by 2015 – most notably in the Green Star SA The event was attended by Green Star SA project commercial markets. This suggests that outside owners, accredited green building professionals, investors, developers and owners will have an certifications in only sponsors of rating tools used to develop and assess ongoing, important role to play in the ongoing green six years. buildings, and representatives of property industry building groundswell. groups. Going green is not just about the environment, the Developers of the 50 certified projects expect their bottom-line benefits of building and operating green buildings will result in significant annual savings of 76 buildings are particularly important considering South million kilowatt hours (the amount of electricity needed Africa’s rising energy costs and water scarcity – by 5 300 households for a year), 115 million kilograms coupled with lower risks, improvements to employee of carbon emissions (equivalent to taking 28 000 cars productivity and ultimately, better investment returns off the road), and 124 million litres of water (sufficient and higher property valuations. for 34 000 households for a year). “We are absolutely thrilled by the uptake in green “Reaching 50 certifications illustrates the commitment building in South Africa. In the past few months the the South African commercial property sector has number of buildings that have been certified, or which shown towards resource efficiency and climate have applied for certification, has increased change abatement, while creating healthier and more exponentially – with 20 buildings being certified in productive environments for us to work and live in,” 2013 alone. We are confident that this upward spike says Brian Wilkinson, CEO of the GBCSA. will continue as an ongoing trend as increased market demand and clear financial rewards, coupled with “The GBCSA could not have achieved the success it mounting government regulations and shareholder has to date without the support of some very big pressures, provide multiple incentives to own and players in the sector that have pioneered the way to a occupy high-performance green buildings,” concludes better future for people and planet. The 50 Wilkinson. certifications celebratory event honoured and thanked these leaders for their valuable support.” Globally, the built environment is responsible for one third of all carbon emissions and with global warming a very real concern that affects us all, a shift in focus to16

Green education on the up in SA with theGBCSAThe Green Building Council South Africa (GBCSA) qualifications. Other courses to bewill be doing an online re-launch of a number of their launched online includeexisting courses which have been upgraded, “In July 2014, we will launch the live (face to face) two more specialisedreworked and repackaged. One of which is the components of the two new AP programmes as well programs; namely theGreen Star SA Accredited Professional Programme as a new course for green communities.” upgraded Projectfor New Buildings. This AP Programme is the Certification WorkshopCouncil’s core educational offering and teaches the In addition to the new online courses offerings the and the Simulations andbackground, theory and detail of the application of GBCSA will also be offering two new “in person” the Submissions Course.the Green Star SA Design and As Built rating system courses, one which introduces Green Star forfor new buildings and major refurbishments. Contractors (sponsored by Saint Gobain) and another which explains the drawing up of a green“Apart from updates and major upgrades to the lease between tenant and landlord.course material, the major change is the shift awayfrom the presentation of the courses as ‘live’ hosted, The half day Green Star for Contractors course wassingle day courses presented for 50 delegates at a developed for the Green Building Council Southtime in the three major urban centres in South Africa Africa by Saint Gobain in response to, andto an Accredited Professional syllabus or set of parts recognition of, the need for contractors to betterthat together make up the GSSA Accredited understand the impact of the application of the GreenProfessional Programme for New Buildings,” Star SA rating system on their construction projects.explains Donne Putter, Education and Training The course covers all the key areas of the tool thatManager for the GBCSA. “This new AP programme would impact on tenders and subsequently sitewill be made up of a comprehensive, in-depth course management of a project aiming for a rating andhosted online in 13 distinct modules that cover the empowers contractors to play a key role in obtainingtheory aspects of the tool followed by a live, in- the highest possible rating on time and within budget.person interactive workshop hosted in an actualGreen Star SA building, where learners are able to The Economics of Green Building course willexperience the building, interact with their peers and continue to be offered as a live in person program.apply their learning from the first part of the course. This course sets out to demonstrate the financialThis would then be followed by an online exam, as is motivation for green building and explores thecurrently offered, to attain the GSSA AP discussions and debate around the perceived costsqualification.” of green building. It covers the benefits and obligations of property stakeholders, as well as thePutter explains that the decision to offer online property value proposition and the financial case fortraining in combination with face to face classroom green building.style learning was taken as teaching time can bemoved online and done independently by attendees,and face to face time can be used for qualityengagement and learning with experts and facultymembers. “The online format allows us to testcompetencies ensuring a higher level ofunderstanding of the material presented. Reducedtravel time for participants and our lecturers are alsobenefits - this has a positive effect on all of our carbonfootprints – and we are now also able to reachparticipants in all geographical locations of SouthAfrica. This is just the tip of the iceberg, we believethe possibilities are endless.”In addition to the re-launch of the existing courses,including the AP programme mentioned above, theGBCSA will also be launching the brand newAccredited Professional Programme for the InteriorsTool and the Accredited Professional Programme forthe Existing Building Performance Tool. These areoffered in parallel with the pre-existing qualificationand teach the application of two new Green Star SAtools, one for Interiors and one for Existing BuildingsPerformance.According to Putter these programmes will consist ofthree parts; online courses followed by in personworkshops and finally an online exam, and will offerlearners the opportunity to attain two additional AP 17

SAVE THE DATE2014 Green Building Convention The leading green 2013 saw the world coming to Cape Town for the 6th environment.building event in South Annual Green Building Convention, this year the Africa - the 7th Annual GBCSA are focusing on Africa - bringing it home. The Pearce then moved to Melbourne where he became aim is to highlight the richness and potential of the city architect and led the design for the Council House Green Building African continent and bring you speakers of South Two (CH2) building, the Municipal Offices forConvention brought to African origin who are pioneering the world in their Melbourne City Council. Completed in 2006 and own way as well as those who are working in this located in the central business district, the city wanted you by the Green space on greaterAfrican soils. to showcase its agenda on sustainability by building Building Council of and exemplar green building. Following on from South Africa - is set to One of the highlights on the South African property principles formed at Eastgate, the building responds take place at the Cape and sustainability calendar – the Green Building to the natural, socio-cultural and economic Town International Convention, sponsored by Nedbank Corporate environment of its specific location, mimicking the way Convention Centre Property Finance, is highly regarded for delivering an nature’s ecosystems are embedded and symbiotic engaging programme by securing thought leaders with its surrounds. The building was Australia’s first 6 from 10 – 12 from around the globe who deliver inspiration and star Green Star rated building and is always held up as September 2014. insight into the latest green building and sustainability an iconic and pioneering green building. Pearce has trends. now moved back to Harare, bringing his talent back home toAfrican soils. Already confirmed in this year’s speaker line-up, and in keeping with the theme of focusing on our own The 2014 programme will offer two days of selected continent, is ZimbabweanArchitect Michael Pearce. keynote presentations and panel discussions. The successful Brainwave Stage from last year’s Committed to creating architecture that is appropriate convention is back, and will host short, TED-like to its surrounding environment and climate, Michael presentations from the green building community. This Pearce was the project architect on the well-known will all be enriched by an exhibition - created to Eastgate development in Harare. Completed in 1996, encourage business to business opportunity, this major office and retail centre is entirely cooled by stimulate the green economy and inspire both our natural systems and makes fantastic use of passive local and international colleagues. design, a bold step away from the all-glass high-rise that is unsuitable to warm, tropical climates. He has The convention also offers optional pre-conference spent his career specialising in buildings which have education courses and programmes as well as low maintenance, low capital and running costs and building tours of Green Star SA certified buildings. In make use of renewable energy systems, taking most addition, there are a number of social events of his inspiration from nature. surrounding the convention that are not to be missed. The Green Building Convention provides outstanding With Eastgate, Pearce looked to the termite mounds networking opportunities with key decision-makers that dot the savannah of Zimbabwe. Like offices, these and industry professionals. Registration for this not- mud masterpieces have to maintain a certain constant to-be-missed event is expected to open during the temperature range throughout the day. They do this by month of March. both exhausting hot air through the “chimneys” and simultaneously allowing cooler air to filter through the elevations and sink to the base of the mounds. Eastgate was, and still is, a fantastic success and set Pearce on a passionate architectural journey to enhance sustainability and diversity in the built18

Green Building groundswell sees 50 GreenStar SA certified buildings in SAGreen Star SA tools – the rating system for green Sisonke District Offices; Ixopo, Kwazulu Natal - 5- After just six years thebuildings in SA Star (2012) Green Building Council South Africa has certifiedThe GBCSA developed a series of Green Star SA City of Cape Town Electricity Services Head Office; its 50th building. Fromrating tools that set the standards for green building Cape Town, Western Cape - 4-Star (2012) humble beginnings theand provides clear guidelines on what constitutes a journey of the council has‘green building’. Human Settlements Contact Centre, Manenberg; seen some exceptional Cape Town, Western Cape - 4-Star (2012) growth and theGreen Star SA is based on the internationally- groundswell of greenrespected Australian Green Star rating system, and Agrivaal Building National Department of Public building in South Africa ishas been customised for the South African context. Works; Pretoria, Gauteng - 4-Star (2012) exciting to witness. TheIt is a voluntary rating system designed to allow the GBCSA has singlecommercial property sector to independently rate ·Government Communications and Information handedly activated andand certify buildings and developments via a Services Head Office; Pretoria, Gauteng – 4-Star supported thecommon green building ‘language’. The tool for new (2013) commercial propertybuildings encourages the built environment sector towards a greenerstakeholders and professionals to minimise the SANRAL Western Region Office; Cape Town, future, making way forenvironmental impacts of their developments. Western Cape - 4-Star (2013) green buildings.Amongst other things it rewards projects forinitiatives that see a reduction in waste sent to landfill ·Nelson Mandela Metropolitan University’s Businessand the creation of more resource efficient designs. School; Port Elizabeth, Eastern Cape - 4-Star (2013)The overall result; a building with reduced energyand water consumption and lower operating costs. ·Department of Environmental Affairs Head Office; Pretoria, Gauteng - 6-Star (2013)The Green Star SA tools allow for certification ofbuildings based on the following levels of “As the largest owner and operator of property, theachievement: Government plays an influential leadership role in accelerating sustainability in the built environment· 4 Star Green Star SACertification - “Best Practice” and it is very exciting to see this impressive line-up of Green Star SA rated buildings which clearly indicate· 5 Star Green Star SA Certification - “South African governments buy-in to green building practises,”Excellence” says Wilkinson.· 6 Star Green Star SA Certification - “World Making Business senseLeadership” According to construction company McGraw and“The GBCSA could not have achieved the success it Hills’ World Green Building Trend survey (2013),has to date without the support of some very big 51% of South Africa firms expect to be building greenplayers in the sector that have pioneered the way to a by 2015 – most notably in the commercial markets.better place for people and the planet. The support This suggests outside investors, developers andhas been widespread but of most significance is the owners will have an important role to play in thetake up of Green Star SA by Government bodies and ongoing green building groundswell.big businesses from banks and propertydevelopers,” says Brian Wilkinson, CEO of the Organisations within the financial sector, who make itGreen Building Council SouthAfrica. their business to focus on successful long term investments are embracing green buildings as they“Globally, the built environment is responsible for one have recognised that investments in green buildingsthird of all carbon emissions and with global warming can produce measureable financial value, such asa very real concern that affects us all, a shift in focus increased rental rates and asset value, reduced riskto green building is something that should be of depreciation, and higher tenant attraction andforemost in everyone’s minds – from government, to retention rates.developers to the average man in the street.” Nedbank, which is known as the “green bank” hasGovernment leading by example positioned itself as a leader in the green building“It’s encouraging to see the country’s leadership take movement in South Africa with three buildings havingup international best practice when it comes to green received a total of five Green Star SA ratings to date.buildings and we are delighted that there are nine The Nedbank Menlyn Maine Falcon Building in thegovernment buildings certified to date. One of the Menlyn Maine Precinct achieved a 4-Star Green Staronly three 6-star buildings to be certified so far in SA Design rating, as well as a 5-Star Green Star SASouthAfrica is also in this category,” says Wilkinson. As Built rating; the Nedbank Ridgeside Office Development in Umhlanga Rocks achieved a 4-StarGovernment building to achieve Green Star SA Green Star SA rating; and the Nedbank Phase IIstatus are: building in Johannesburg achieve a 4-Star Green Star SA Design rating as well as a 4-Star Green StarSANRAL Corporate Head Office; Pretoria, Gauteng - SAAs Built rating.4-Star (2012) Amongst the other groundbreaking buildings to have achieved Green Star SAratings within the banking 19

Today, green buildings sector are the Portside building, situated in Cape SA tenants are increasingly demanding green can be delivered at a Town’s Foreshore, which achieved a 5-Star Green buildings as they provide a healthier and more price comparable to Star SA rating, and which is a joint initiative between productive indoor environment. They also reduce the Old Mutual and Firstrand Bank, as well as Standard consumption of energy and other resources, which isconventional buildings Bank’s office development in Rosebank which becoming more and more important. and investments can achieved a 5-Star Green Star SArating. be recouped through Several buildings belonging to commercial property operational cost Other Green Star SA certified buildings are: developers have also achieved Green Star SA status savings and, with the in SA. Amongst these are 24 Richefond Circle, an right design features, Vodafone Site Solutions building; Midrand, Gauteng- office building in the Ridgeside Office Park in create a more 6-Star (2011) Umhlanga, which has a 4-Star Green Star SA rating and belongs to Shepstone & Wylie; as well as theproductive workplace. 40-On-Oak; MelroseArch, Gauteng - 4-Star (2011) Group Five Head Office in the Waterfall Business Estate which belongs to Atterbury Property Holdings. DSTV City; Randburg, Gauteng - 4-Star (2013) Growthpoint Properties has two Green Star SA certified developments - Lincoln on the Lake and Alice Lane Phase 1 & Phase 2; Sandton, Gauteng - 4- Mayfair on the Lake in KwaZulu-Natal – both of which Star (2013) achieved a 4-star Green Star SArating. National English Literature Museum (NELM); “Developers have identified that there are clear Grahamstown, Eastern Cape – 5-Star (2013) environmental benefits for building green as well as a compelling business case. Going green is not just Hyundai Head Office; Bedfordview, Gauteng- 4- about the environment, the bottom-line benefits of Star(2013) building and operating green buildings are particularly important considering South Africa’s rising energy Chevron Project CORE building; Cape Town, Western costs and water scarcity – coupled with lower risks, Cape -5-Star (2013) improvements to employee productivity and ultimately, better investment returns and higher Lakeside Office Park; Centurion, Gauteng -4-Star and property valuations,” says Wilkinson. also awarded SAPOA Innovative Excellence Award (2013) “We are absolutely thrilled by the uptake in green building in South Africa. In the past few months the No 1 and No 2 Silo buildings; Cape Town, Western number of buildings that have been certified, or which Cape-6-Star and 4-Star respectively (2013) have applied for certification, has increased exponentially – with 20 buildings being certified in Developers realizing the business case for green 2013 alone. We are confident that this upward spike building will continue as an ongoing trend as increased market demand and clear financial rewards, coupled with Because developers have kept increasing utility costs, mounting government regulations and shareholder potential carbon taxes and stricter regulations in mind pressures, provide multiple incentives to own and when it comes to rental premises, they have occupy high-performance green buildings,” concludes recognized that Green Buildings are future-proofed, Wilkinson. can fetch lease premiums and retain tenants for longer than conventional buildings.20

South African Green Leader appointed Chair ofWorld Green Building CouncilKerswill, who has been involved with the World GBC building for developing countries, and has played an Bruce Kerswill, ExecutiveExco since 2009, is passionate about green building integral role in facilitating the formation of the Africa Chairman of the Greenand, having recognised that the lack of knowledge Regional Network of Green Building Councils. Building Council Southabout green building in South Africa was limiting our Africa (GBCSA) and theefforts in terms of global warming and international Kerswill has had a long career in the commercial pioneer who led thebest practice, championed the initiative to set up the property industry. A Town and Regional Planner and charge in the formation ofGreen Building Council of SouthAfrica (GBCSA). MBA by training, he moved into property the local Council, has development and housing, and then into property been elected as theSince then the GBCSA has become recognized as asset management and corporate strategy. With Chairman of the Worldthe ‘lead’ organisation in green building in South partner Rodney Squire-Howe, he co-founded Spire Green Building CouncilAfrica, and is now one of the most active councils Property Group and assembled the Paramount (World GBC)globally. Kerswill’s involvement with the World GBC Property Fund, listing it on the Joburg Stockalso affords the GBCSA continued and improved Exchange in 2001. Most recently he played anaccess to international resources, information, integral role in the formation and listing of the Towerinsight and skills. Property Fund, the first fund to list on the JSE under the REIT structure. He is currently Managing DirectorThe World GBC aims to facilitate the global of Spire Property Group, which provides propertytransformation of the building industry towards management services to private and corporatesustainability, and currently has 100 Green Building clients.Councils from other countries as members. Buildingsglobally consume about 40% of the world’s energy, “I look forward to my role as Chairman of the Worldand green buildings typically reduce consumption by GBC: there is a real magic to over 100 countries all50 to 70%, so have a massive impact in reducing working in synch to address some of global society’sgreenhouse gases. The WGBC assists new GBC’s greatest problems. WGBC has over 28 000and promotes interaction in its network, as well as companies, including some of the world’s largest,providing leadership on common global issues. who are members of its constituent GBC’s. I believe it is one of the most effective organisations inDuring his involvement with the WGBC, Kerswill has addressing climate change, effecting change on thechampioned the cause for social and environmental ground and in people’s behavior – and all done in aimpacts to be included in the concept of green great spirit of camaraderie” concludes Kerswill. 21

Expansion will help relieve pressure onrail sector KEEPING AFLOAT the Owing to poor economic conditions, the South African “The rail sector needs large rail projects to keep it South African rail rail sector is under strain, says engineering, buoyant, which require substantial capital investment management and specialist technical services to fund.sector needs large rail company Aurecon railway engineering technical projects to keep it director Francois Heyns. “The funding and feasibility of these projects are a challenge, particularly in current market conditions,buoyant, which require However, State-owned rail services provider where prices of bulk mining commodities are under substantial capital Transnet’s large capital expansion programme could strain,” Heyns asserts. investment to fund provide the impetus for the sector to recover, he adds. He notes that bulk mining commodities, such as coal and iron, offer the South African rail sector the greatest opportunity for growth into Africa, as they constitute substantial export volumes. Heyns adds that there is a great need for training and skills development in the rail sector. “Transnet is making a significant effort to develop skills in-house through various programmes and has embarked on a supplier development programme with all its suppliers to further develop industry skills.” The supplier development programme is a Department of Public Enterprises initiative, supported by Transnet, which aims to increase the competitiveness, capacity and capability of the South African supply base, where there are comparative advantages and potential competitive advantages of local supply. This increase in competitiveness, capacity and capability can be achieved through skills transfer, increasing the local content of items procured and building new capability in the local supplier base.22

Flooring range launched onto local marketIn response to the growing demand for efficient and WP grinding machine. Diamond Products is thecost-effective methods of industrial floor preparation exclusive distributor ofand rehabilitation, flooring solutions provider The Quickchange 16/20 diamond grit pads were also Diamatic flooring,Diamond Products launched its new ranges of floor used – these were attached to the client’s Diamatic grinding and vacuumgrinding, polishing and cleaning systems onto the 435 floor-grinding machine through its universal systems in SouthernSouth African market in September last year at the adaptor plate. “The Quickchange system provided a Africa. It is also thebauma Africa trade show, notes company director high-quality and precise grind at a considerably exclusive distributor ofBrian Clark. discounted rate, which reduced the overall costs of the floor-grinding and floor grinding by 30%,” explains Gray. polishing pad range,Clark tells Engineering News that the Diamond Quickchange. Both theseProducts range of floor-grinding, polishing and Further, he says custom-made tools from the products aremaintenance systems, along with its floor-grinding Diamond Products product range were used to meet manufactured in theand polishing consumables, has changed the game the specifications of the hospital flooring. Netherlands.in terms of industrial floor preparation, as it is morecost effective and energy efficient than tools “Unlike a store’s floor that is quite smooth and flat,previously available on the market. hospitals need vinyl flooring material to be laid on top of concrete to meet the health and safetyClark adds that the Diamond Products range of requirements, as it is easier to clean.industrial floor preparation and maintenanceproducts provides an efficient and hygienic “For that purpose, after the concrete surface hadalternative to the industry standard. “The Diamatic been laid, the floor was ground to a smoother andrange of floor-grinding machines is available in sizes more acceptable finish. Diamond Products floorranging from the 180 mm single head system to the grinding equipment was used to create a rougher780 mm triple head remote control system and is far texture to prepare it for the binding with the vinylmore productive, efficient and hygienic than industry- flooring material,” elaborates Gray.standard manual labour.” Diamond Cup GrindersThe Quickchange range includes a universal adaptorplate that enables the Diamond Products tooling to Diamond Products launched a new versatile range ofbe attached to most of the traditional floor-grinding diamond cup grinders in November last year. Clarkmachinery available in South Africa. The Quickshine says the new cup grinders are designed for 115 -,floor-grinding and polishing pads are diamond- 125- and 230-size hand-held grinders for use oncoated for the efficient cleaning and maintaining of materials such as stone and cement.marble, granite, polished concrete and terrazzo andcan be used with or without chemical cleaning “The double-row segmented diamond cups offer aagents. greater surface area of grinding diamonds which, in turn, results in time being saved during projects. TheKimberley Hospital Project cup grinders use synthetically manufacturedDiamond Products codirector Darryl Gray says the diamonds, boosting their performance,” notes Clark.company recently worked on a project with hospitalinfrastructure provider Tronkon, which included the The company offers the cup grinders in three formsconstruction of six operating theatres, an emergency of grit – coarse, medium and fine. The coarse-gritcentre, four ward blocks, a high-care unit, an grinders are suitable for the removal of large layers ofintensive-care unit and consulting rooms at the material and can remove layers of paint and smoothKimberley-based public hospital in the Northern layers of concrete and excess material.Cape. “The medium- and finer-grit cups remove lessThe construction of the 146-bed hospital is material, but are guaranteed to provide a smootherscheduled to be completed in August. Tronkon, is finish. The system is versatile because it can be usedcontracted to build the hospital and Diamond in conjunction with the Diamatic floor-grinding andProducts has been contracted to supply a range of polishing systems,” he concludes.equipment for floor preparation.Diamond Products supplied the grinding machinerythat was used in the grinding of the hospital floors.The project included levelling 10 000 m2 of floorspace, which was done with Diamond Products’ 435 23

Hotel construction in Africa gatheringAfter years of delays in Having been involved in more than 200 assignments to those areas focusing on building three-star andhotel construction and in Africa since 2003, HTI Consulting CEO Wayne four-star hotels. Lack of development andinfrastructure in Africa, Troughton states that the development in Africa that is infrastructure in these areas has led to the need for starting to take shape has attracted much-needed mixed-use projects around hotel infrastructure that owing to a lack of international investment for the hotel business. can be linked to shopping malls to ensure convenient experienced and Necessity living for people. Massive Wealth knowledgeable “As more minerals are discovered and explored, investors in the hotel infrastructure becomes a necessity. This means that “In the next 15 years, we are going to see a massive industry, development people need accommodation, which has forced a amount of wealth in Africa. China has realised the stricter and more orderly way of investment in hotel potential in Africa, and other countries outside the is starting to gain infrastructure projects and developments,” he notes. African continent are starting to see the growthmomentum because of potential in Africa. “Our role is to source opportunities Troughton highlights that investors in the hotel for such investors where development can occur and the discovery of business previously lacked the experience in and ensure that they are viable and sustainable. minerals in most insight into the business, which led to many unfinishedAfrican countries, says projects and extended delays in the completion of “We specialise in the gathering, analysis and consulting firm HTI projects because they were inconsistently financed interpretation of sensitive market and financial data; and managed. As a result, projects that would usually the production of market and financial feasibility and Consulting. take 30 months to complete take between five and viability studies, business plans and marketing seven years to complete. strategies; and project concepts for hotel, residential, real estate, leisure, conference and integrated resort However, he points out that trends over the past two developments. “This enables us to nurture long-term years have indicated that foreign investment in the business relationships with our clients, providing industry has been stimulated with more experience tailored solutions for every stage of the project’s and better knowledge of the business, which are development,” explains Troughton. positive influences on the hotel industry. “This enables us to nurture long-term business relationships with our clients, providing tailored HTI Consulting highlights that, as most developments solutions for every stage of the project’s linked to mineral wealth occur in remote areas, development,” explains Troughton development is decentralising away from major cities24

Manufacturer secures Gibela contractSouth African engineering firm Delberg Engineering Standardisation (ISO) ratings, machinery and French multinational railsecured a contract last month for the manufacture equipment, as well as financial security,” says solutions provider Alstomand supply of piping-related work, such as handrails Dreyer, noting that Delberg Engineering is ISO 9001- is the majorityand hydraulic pipe systems, which will be fitted onto accredited. shareholder of thethe locomotives and coaches being supplied to the consortium, which willPassenger Rail Agency of South Africa by the Gibela He highlights that securing local content was one of manufacture and supplyRail Transportation consortium. the biggest challenges in winning the tender, as 600 of Alstom’s new certain components, such as heat-treated steel, are X’Trapolis MegaDelberg Engineering chairperson Edwin Dreyer tells not manufactured locally and need to be acquired passenger locomotivesEngineering News that tender applications for 60 either from local agents or directly from foreign and 3 600 coaches fromlocomotives of the R51-billion project opened in suppliers. 2015 to 2025. EachJanuary this year. locomotive has 60 Meanwhile, he notes that two companies – pipe- wagons.“We submitted the tender application for the 60 units bending specialist and namesake Delbergin February. Alstom, of France, contacted us and we Engineering and metals trader Corrotherm –discussed the 600 units mentioned in the amalgamated in September 2013 to form Delbergaccreditation application form. Consequently,Alstom Engineering.informed Delberg Engineering that it had receivedthe tender for all 600 units,” explains Dreyer. “The merger enabled the company to compete for large tenders, such as those incl- uded in State-Delberg Engineering has been successfully audited owned freight rail company Transnet’s R307-billionby Alstom to verify that it has the technical expertise market demand strategy to improve South Africa’sand financial security to carry out the project safely rail infrastructure,” notes Dreyer, who adds that aand on time. large sum has been invested in the company to ensure it does have the capacity to complete projects“Some of the aspects involved in the tender process of this magnitude.include safety, experience, South African Bureau ofStandards and International Organisation for 25

Partnership to enhance local flooring industry “For the first time in Three flooring solutions providers, namely concrete Meanwhile, Rock Solid Flooring is responsible for theSouth Africa, there is a equipment manufacturer and supplier group of marketing and training of applicators that use the X- companies Pan Mixers South Africa (PMSA), flooring Tech StoneFlow solution. Rock Solid Flooring, using partnership of concept solutions provider Rock Solid Flooring and the HTC diamond cleaning twister system, also companies that international construction solutions provider TAL X- provides training on the cleaning and long-term specialise in different Calibur, have partnered to develop the X-Tech maintenance of the floor. aspects of flooring, StoneFlow flooring concept. which is focusing on X-Tech StoneFlow providing the best The X-Tech StoneFlow is a concrete flooring solution The X-Tech StoneFlow is a high-performance, quick- flooring solution for that is laid on the floor surface and can be ground and setting specialised concrete flooring system that the consumer. polished to a deep shine within hours of it having been offers a deep, shiny finish. Booysen says the system Traditionally, the laid. The solution, comprising 25 kg coloured matrix can be laid to restore dilapidated floors; it can also beflooring industry in the and 10 kg coloured aggregate, is mixed with water to laid on the floors of newly built buildings. country is set up in create a 13 mm to 20 mm flooring overlay. such a way that, if “X-Tech StoneFlow is ready for grinding within seven someone knows Speaking to Engineering News, the consortium says hours, as it reaches 25 megapascals (MPa) within that something about they want to offer the South African consumer a period, compared with normal concrete solutions that flooring, a flooring flooring solution that can be accessed in one area have a waiting period of up to four weeks between business can be while developing the country’s floor-solutions laying and grinding,” Booysen notes. started, which often development capabilities. posed challenges Moreover, when installation is complete and the floor pertaining to quality “Now, with the X-Tech StoneFlow, consumers will is ready, it is extremely hard wearing and it can reach receive high-quality products and services from 60 MPa in hardness. The X-Tech StoneFlow is and services. experienced flooring professionals,” says PMSA available in nine colours that will act as a base matrix marketing and sales manager Quintin Booysen. colour. Further, the partnership will grow each company’s “Another advantage of the system is that it can be market reach and clientele base, TAL X-Calibur custom-made to suit any chain store’s look and feel technical executive Obert Rutako says. He adds that throughout the country and customers can also mix the partnership creates a triangular referral system different colours and come up with a unique look,” spread threefold wider that will benefit the partners says Superb Flooring Systems technical sales and help the businesses reach into the market. representative Richard Hugh. The partnership entails that HTC, through Superb An X-Tech StoneFlow floor is easy to clean, as only Flooring Systems – which is locally marketed through water is required and an HTC StoneFlow chemical PMSA – provides the specialist machinery used in the makes the floor stainless. grinding and polishing process. Projects TAL-X Calibur manufactures the concrete flooring Hugh adds that the consortium completed the locally, using local materials. “Competitors import installation of X-Tech StoneFlow floors at Southern similar products, which gives us a price advantage, as Sun Hotels’ Elangeni and Maharani hotels in Durban, we do not ship concrete stones around the world and KwaZulu-Natal. enable the creation of more job opportunities in the manufacturing of the product,” states Booysen. Further, Fulcrum Flooring – the contractor that is the X-Tech StoneFlow concept’s approved applicator – has installed the X-Tech StoneFlow floor at Tile Africa’s store in Silverton, Pretoria. Fulcrum Flooring on-site director Sydney Little says the flooring system is ideal for stores such as Tile Africa, as fork lifts can drive around without causing any damage to the floor. Hugh concludes that there are plans to take the X- Tech StoneFlow to other Southern African countries, after sufficient presence has been established in the South African market. “Angola, Zimbabwe and Namibia have shown interest in the system.”26

New entrants could impact on projectmanagement trendsEngineering, procurement and construction services a project management company provides Tenova Bateman’s coremanagement (EPCM) services provider Tenova needs to be comprehensive, as should the depth and focus is on building solidBateman says several relatively new entrants in breadth of knowledge and experience that the partnerships with all itsAfrica’s mining sector may play a pivotal role in company employs, to be able to effectively integrate clients to ensureevolving project management trends. the various elements of the project value chain to objective transparency provide a single point of contact. throughout the project’sThe most influential participant is China, a country life cycle.becoming more prominent in Africa, Tenova “You do not necessarily have to have all the servicesBateman sub-Saharan Africa project execution under your own umbrella, but you certainly need tosenior GM Stehan van der Post tells. provide a single point of contact for the clients,” he says.He explains that Chinese miners’ approach toconsulting with contractors and implementing The Key to Successprojects, especially in sub-Saharan Africa, is Van der Post believes that an alignment of objectivesmarkedly different to the approach of the mining between all project parties is key to a project’s overallhouses that dominated the market in the past. success.“We gained valuable experience with Chinese “A good working relationship between the client’sminers during projects we have been involved in over project team and the EPCM’s project team willthe last three years in countries such as Namibia,” ensure proper alignment of objectives, resulting insays Van der Post. He notes, however, that miners less energy being spent on exhaustive efforts towho are new to Africa and who are trying to establish manage a detailed contract,” he notes.themselves on the continent always present a“unique challenge”. Van der Post adds that major mining clients approach projects differently, compared with mostHe adds that Tenova Bateman accommodates midtier and junior mining companies in terms ofchanging market requirements by focusing on clients project evaluation, depth of feasibility studies andand providing tailor-made solutions. capital available for projects, among other facets of project management.“It is necessary for project houses to be flexible, asthey need to adapt to clients’ specific needs,” notes Major mining houses emphasise building the rightVan der Post, further pointing out that a rigid business relationships by focusing holistically on aapproach might discourage prospective clients who portfolio of projects and the project pipeline. “Theserequire a unique method of project management. mining houses require strong business relationships with the engineering and construction serviceFuture of Project Management providers,” he says.Van der Post notes that growth in the mining industryis currently slow, compared with historical trends. Identifying mature service providers is another key aspect of ensuring the success of a project,The fact that the industry is “extremely competitive” especially when dealing with complex projects, saysdoes not help, he says, adding that many projects do Van der Post. With the assistance of corporatenot receive funding to proceed. “Given the shortage maturity assessments, the competence of EPCMof new capital projects, a project management contractors can be determined by assessing thecompany needs to be clear on what it offers, and quality of their work and expertise beforecommunicate that to market,” says Van der Post. commissioning them.“An important part of ensuring that we develop the Fundingbest client solutions is the innovation that we bring to Van der Post explains that newer compa- nies oftenour project through our flow sheets and design. We face a stumbling block in the form of funding. “In thefocus on developing solutions through . . . the most junior to midtier arena, assistance with projectadvanced technologies, always seeking to balance funding is impor- tant,” he says, adding thatprocess efficiency with capital expenditure and companies usually rely on external facilitation ofoperational expenditure requirements through fit-for- funding to allow for feasibility studies and projects topurpose solutions. proceed.“Our approach to project implementation further “Tenova Bateman is active in this regard and thereenhances this by ensuring a high level of control over are various ways through which we can help secureall the stages of a project, productive use of project funding for projects and feasibility studies,” he says.resources and effective teamwork betweenourselves, our client and our subcontractors,” he Besides the traditional financing providers, Van dersays. He adds that the need for external project Post says many governments are willing to providemanagement is definitely a growing trend from theowner’s perspective. Van der Post says the range of 27

R1-bn investment towards Transnetmanufactured locomotive State-owned rail operator Transnet is dedicating Transnet Freight Rail CEO Siyabonga Gama. about R1-billion of its R307-billion Market Demand Strategy (MDS) towards research and development Molefe commented that Transnet is dedicated to for the manufacture of its own locomotives, Transnet developing South African rail capabilities, which will group CEO Brian Molefe said at the company’s R50- enable it to participate in the development that will take billion supplier announcement, in March. place in theAfrican railway industry. Print Send to Friend 00 “The significance of today is that we have identified partners that will assist us in becoming an OEM for He added that the investment would assist in future sales to the rest of the continent and to other developing its engineering arm, Transnet Engineering parts of the world,” he enthused. (TE), into an original-equipment manufacturer (OEM). He added that Transnet is already an internationally “TE has established a dedicated research and recognised brand through its past rail equipment sales development unit dedicated to this goal, at the Council to Australia, India and countries in South America and for Scientific Research (CSIR), in Pretoria,” he pointed the Middle East. out, adding that Transnet has signed a cooperation agreement with the CSIR. “We have a team of engineers working on a Transnet locomotive and we believe that by the end of the MDS, we will have sufficient knowledge to become an OEM,” Molefe asserted. Transnet is also making a R300-million capital investment towards upgrading TE’s facilities in Durban and Koedoespoort, in Pretoria. “This investment will assist us in developing TE into an OEM, specifically focused on assembling and manufacturing locomotives for the rest of Africa,” said28

Major infrastructure construction completed atThe mixed-used lifestyle estate, Steyn City, located the catalyst in developing an estate where people MEGALITRE RESERVOIRalong the Jukskei river, in Johannesburg, has and walkways form the backbone of how they live Steyn City Properties hasinvested significantly in infrastructure, some of which with their neighbours. We have created a network of constructed a new R35-will serve the surrounding areas and the estate, interlinked parks and open ecological areas, million water reservoir onwhich will launch next year. comprising more than 400 ha, all of which border the the north-eastern homes of the estate,” he says. segment of theThe more than 800 ha estate, which is the vision of development, which willlocal businessperson Douw Steyn and developer The residential options for the estate will include store up to 30 Ml of waterSteyn City Properties CEO Giuseppe Plumari, is more than 8 341 apartments, 731 cluster homes, 818designed to provide secure country living with freehold houses and 120 retirement-village units.convenient access to city amenities. A wide range of retail outlets, restaurants and privateThe upgrade of a bulk sewer pipeline, which runs schools, as well as crèche, medical, recreational,from the surrounding Dainfern area to a new health, fitness and sporting facilities, will be availablepumpstation, at a cost of R73.9-million, has been on the estate. It will also include 90 000 m2 of officecompleted. park space.The new bulk and sewer pumpstation will allow for Newly structured gas infrastructure, with two bulkthe future decommissioning of the existing gas-storage farms, will be implemented to provide apumpstations in Dainfern and Beverley. comprehensive piped gas service for residents of the Steyn City estate.Steyn City Properties has also constructed a newR35-million water reservoir on the north-eastern Solar energy will also be available as an option tosegment of the development, which will store up to homeowners who prefer to reduce their carbon30 Ml of water and will supply Steyn City and footprint. Energy efficient lighting schemes usingsurrounding areas. low-energy light-emitting diodes for streetlights and landscape lighting will also be implemented on theSteyn City Properties has partnered with estate.government to expedite regional infrastructureupgrades, including the upgrade of William Nicol With an emphasis on going green, half of thedrive (R511), of which about 6 km will be transformed development will be wooded parkland, and eight on-into a dual carriageway, with future plans to extend site nurseries and a propagation laboratory havethis to the N14. been established. Further, at least 80 000 trees have thus far been planted around Steyn City’s 18-holeIn response to residents’ requests for improved Nicklaus design championship golf course andsafety and transport areas, cyclist and pedestrian estate, with more set to be planted before the launch.lanes were constructed from Mulbarton street toErling street, along the R511. To date, the project has created more than 9 500 jobs on site, with local skills procured from the DiepslootPlumari tells Engineering News that Phase 1 of the and Cosmo City areas.development cost R6-billion and consists of theconstruction of the infrastructure, 800 residential Training courses in plastering, bricklaying andunits and parklands. paving are also offered on site to ten workers at a time, over two months, after which they can secure a“We want to offer the best lifestyle one can live. Road job at the development.infrastructure is the main cause for nonsafecommunity living and we want this development to be 29

Alert Steel losses increase as difficult tradingconditions persist During the period “The trading for the six months under review assets from Build Kwik amounting to R6.1-million. under review, Alert continued to be challenging. The difficult trading conditions experienced in the first half of the calendar Other additions to property, plant and equipment Steel introduced year in Limpopo, where the group has a significant amounted to R23-million and included relocating thehardware and building presence, continued in the second half of the calendar company’s distribution centre to accommodate thesupplies together with year,”Alert Steel said. increase in stockholding, refitting most of its majorsteel and steel-related stores with new shelving to accommodate the new It added that the group’s split between cash business product ranges, as well as the opening of new stores. products to offer and credit continued to grow with the cash businesscustomers a complete having increased to more than 65% of the group’s Meanwhile, sales, distribution and administration R404.9-million costs increased by 19% to R115.6-million during the range of products revenue. period under review, including a R5.7-million required for the impairment of goodwill, R2.3-million in retrenchment A slowdown in Alert Steel’s contracting and credit costs, R1.6-million in professional fees – relating to building industry. business had been observed during the period as a corporate actions – and increased depreciation on result of tighter credit control. property, plant and equipment of R2.3-million. Further, Alert Steel had changed its focus from rolling “The [reduction of] monthly overhead costs continue out containers to concentrating on the opening of to be a key focus area to ensure that Alert Steel express stores to accommodate the reintroduction of becomes the lowest-cost supplier in the industry,” the hardware and building supplies into the group. company said. In line with this decision to expand the product range, Further, Alert Steel stated that, by April 2015, it the group acquired all the trading stock from building intended to develop a further 28 stores in the greater and hardware supplies retailer Build Kwik Johannesburg and Pretoria areas. Wholesalers to the value of R23.6-million during December 2013. “These areas have an added benefit of limiting distribution costs as they are very close to the The full benefit of these additional stores was distribution centre in Pretoria. The result is that these expected to come to fruition during the next six additional stores will have a positive effect on the months. financial position of the company,”Alert Steel stated. This acquisition also resulted in an increase in the group's inventory holding to R143.6-million,Alert Steel noted, adding that it had also acquired certain fixed30

Engineering components distributor installs new,low-maintenance cable carrier system“This project in Newcastle, KwaZulu-Natal, entailed Further, he comments that BMG has installed the Engineering componentsthe removal of a worn, damaged cable carrier and the system at steel and aluminium producers, and that distributor Bearing Maninstallation of a new 8.28 m steel Tsubaki BMG installed seven systems last year. Group (BMG) recentlyKabelschlepp cable carrier system, which is The Kabelschlepp range also includes emergency completed the installationdesigned to withstand highly corrosive cable carriers (ECCs), which are designed to prevent of a new steel cableenvironments,” says BMG Kabelschlepp product downtime and reduce repair costs, he notes. carrier system, ofmanager Mike Owens. The ECC series, which detects a blockage in the undisclosed value, at a“This lubricant-free Kabelschlepp system, which travel lengths of cable carriers, automatically straightening mill of onefeatures self-cleaning links, has increased geometry switches the system off to prevent damage to the of the largest steelthat prevents blockages of the stroke system, entire cable system, he explains. producers in Africa.caused by dirt deposits when the cable carrier is in In addition to the emergency stop function, the ECCmotion,” he says, add- ing that this enhances series also offers a bridging safeguard for the brakingproductivity and reduces maintenance breaks and distance in both directions of travel. Once thecostly downtime. blockage has been removed, the system is easilyOther advantages of the cable carrier system include recoupled and ready for operation immediately,high load-carrying-capacity, high-impact resilience Owens says.and no maintenance, Owens adds. He notes that this safety system is designed forThe new steel cable carrier system, which meets the applications with long travel lengths in ports and steel50-kg-a-metre load-carrying-capa- city requirement, works, as well as cranes, com-post, coal or rawruns below the straighten- ing mill and withstands material conveyor systems.about 5 t of mill scale depositing on the carrier and The steel industry market’s reaction to the new cablesurrounding bay in a 24-hour period. carrier system is “pleasing”, owing to the ease of theThe tandem design of this steel cable carrier has system’s installation and its low continuousthree sidebands, with solid aluminium, machined to maintenance, he concludes.suit the cable framestays. Features of this TsubakiKabelschlepp cable carrier system include 2-m-a-second acceler-ation and a running speed of 1 m asecond. Continuous thermal loads of up to 600 °Care possible, Owens notes, adding that the system isdesigned to last ten years.BMG’s Tsubaki Kabelschlepp range, which extendsfrom standard individual components to completesystem solutions, is enhanced by custom-manufactured systems to meet exact requirementsin diverse sectors, Owens says, adding that thesesystems are available in heavy-duty steel andcorrosion-resistant stainless steel, as well as indurable, light-weight plastic materials. 31

Modest recovery forecast forSouth African steel industry“Weak margins, owing International credit insurer Coface noted a 40% Robertson. Meanwhile, he notes that about 56% of to persistently low increase in the number of steel company liquidations in primary steel exports from South Africa remained in steel prices and the 2013. “Coface encountered 55 cases of liquidation in the Africa in 2012. Simultaneously, however, the level of looming threat of a local steel industry last year,” Coface industry analyst steel imports into South Africa also continued to national carbon tax Warrick Robertson says, adding that the credit insurer increase, having surged almost four-fold from 2002 observed a 56% increase in the claims value for the to 2011, he adds. from 2015, will further steel industry for 2013, which suggests that the losses deter the investment incurred from the liquidations were severe. He notes that, although steel imports increased by needed to raise steel about 60% since the beginning of 2013, owing to production capacity Coface believes that the increase in liquidations can disruptions in steel production and a stronger rand, mostly be attributed to the First Strut group liquidation – imports will decrease as the rand deteriorates.use rates by more than the largest corporate bond default in South Africa’s Despite ranking only twenty-fourth in the list of global what Coface currently history. “Companies that supplied the First Strut group steel producers, South African mills service the without credit insurance were forced to write off large domestic manufacturing and construction sectors forecasts,” says amounts of bad debt,” Robertson says, adding that and export crude steel and refined products to the Robertson. significant losses and liquidations were caused by the SouthernAfrican region. trickle-down effect to other companies. Although Coface forecasts a modest recov- ery in Coface forecasts only a marginal recovery for the South domestic steel consumption, Robertson stresses African steel industry this year, as the investment that sub-Saharan Africa remains a growing market required for a more substantial recovery is extensive, for South African steel prod-ucts, which is mainly which does not seem likely, says Robertson, adding that driven by infrastructure projects in countries, such as the yearly production growth is expected to average Nigeria, Kenya, Tanzania, Zambia and Mozambique. about 1% from 2013 to 2017, owing to a deteriorating business environment in SouthAfrica. These development generate increased demand for steel, with South Africa being geographically closer This deterioration is caused by an increased trade to other African countries than countries such as deficit, which, in turn, is caused by weak demand for China or Japan, which are also exporting their manufactured goods in Europe, declining levels of products to the continent, comments Robertson. production and investment in the mining sector, a lack of “Africa has the potential to be the continent of the large infrastructure development, and the slow pace of future. Local steel manufacturers need to improve project implementation, explains Robertson. business relationships with other African countries, as future demand for their products will more than Other factors that will negatively affect the steel industry likely come from these countries,” he says, adding include reduced capital expenditure in the mining that proper cultivation of these relationships will industry, owing to labour unrest, and the deterioration of provide opportunity to expand the steel industry. the rand, he says. Sustained labour-market disputes also remain a major threat to the stability of the South In addition, to support a substantial recovery in the African steel industry, as the continuing trend of steel industry, Robertson points out that the steel aggressive wage demands in the mining sector remains industry needs to upgrade its machinery and improve a large risk, with significant spillover effects into other technology to be more efficient and cost effective. heavy industries, adds Robertson. “The bulk of the machinery used in the local steel industry is outdated and prone to stoppages and “In addition, the domestic economy is further confronted breakdowns,” he says, adding that the dated process by electricity supply concerns and tariff increases, which has resulted in the industry having to use a higher will adversely affect the competitiveness of South grade of iron-ore and increased amounts of energy Africa’s domestic steel industry.” during production. Meanwhile, Robertson further comments that the global Further, he notes that upgraded steel plants and mills economy remains weak and has not reached the levels will provide increased reliability, better profit margins of growth needed to induce a strong recovery in steel and improved steel prices, owing to increased demand. Judging by recent standards, global steel efficiency in the timeframe, energy and cost of prices are expected to remain weak, owing to global production, and fewer disruptions. overcapacity. Outlook Constrained Investment Robertson points out that as confidence in the However, the major steel firms in South Africa are not construction industry increases, owing to large expected to undertake any major upgrade or construction firms filling their order books, the demand expansion projects over the next year, owing to weak for steel is likely to increase. Although the rand margins and an uncertain investment climate, depreciated markedly in 2013 and has been one of the Robertson says, adding that input costs in the form of worst- performing major emerging-market currencies, a iron-ore and coking coal will remain below the levels weaker rand will further bolster export demand, says of those seen in recent years.32