Transcript Stakeholder Management Framework

BEE at the National Ports
Authority of South Africa
Presenter
Siyabonga Gama, CEO
The National Ports Authority
of South Africa
Who Is The NPA?
 The National Ports Authority of South Africa owns and
manages all seven commercial ports on the 3 300-km
South African coastline. These ports are Richards Bay,
Durban, East London, Port Elizabeth, Mossel Bay, Cape
Town and Saldanha.
 As landlord it is responsible for overseeing all aspects of
port infrastructure development, leasing of port property
and maintenance and marine activities
 The company generate a profit of approx R1.9bn in profit
annually
 We are building the eighth port next to Port Elizabeth in
the Eastern Cape…the Port of Ngqura
The Business Of NPA
Landlord Services
 Property management
 Planning and development
 Safety, Health and Environment
 Engineering
 Security Services
Maritime Services
 Marine Services
 Ship Repair Services
 Lighthouse Services
 Dredging Services
Serving The South African
Economy
 The efficient running of ports is important to the wellbeing of the economy of South Africa
 The ports handle 98% of the countries exports and
imports (212m tons in 2003)
 The ports are the primary conduit for trade, serving as
the gateway of the world to the Southern African
economy
 2 years old organisation, with new personality, new
vibrancy, new corporate footprint and fresh dedication
to embrace business development challenges whilst
addressing a transforming society’s needs and
aspirations.
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Saldanha
Cape Town
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Richards Bay
Durban
East London
Ngqura
Port Elizabeth
Mossel Bay
Deepwater ports
Richards Bay
 SA’s major bulk port handling 65 million tons of
coal and 30 million tons of general cargo exports
 2nd largest bulk coal terminal in the world and
world class operations
 Also provides multipurpose and bulk metal
terminals
Saldanha
 Second bulk port exporting some 24 million tons of
iron ore and importing around 4 million tonnes of
crude oil
 Other exports include base metals, finished steel
products and chemicals
Hub Ports
Durban
 Busiest container port moving 1.4 million TEU’s in 2002
 Major handler of liquid bulks and other commodities such as
grain, fruit and forest products
 Its 525 000 tonnes sugar terminal is the biggest in the world
 Ship repair facilities are offered
Cape Town
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Geographic position at crossroads of international sea routes
Single major export is fruit from the Western Cape region
Also boasts a significant container terminal
Important base for fishing industry
Multi purpose, dry and liquid bulk terminals as well as fully
serviced dry docks
Multi-purpose ports
Port Elizabeth
 Major fruit terminal
 Manganese ore is next biggest export commodity
 Entry point for the motor car industry while also an exit for fullybuilt vehicles to the Far East
East London
 Only commercial river port in the SA port system
 Boasts largest grain silo in southern Africa
 Grain; primarily maize, is the most important single product
exported through the port
Mossel Bay
 Specialised port serving local inshore and deep-sea fishing
industry
 Offshore oilfields and inland gas refinery are serviced here
Total Cargo Handled Per Port
2002/2003
1%
19%
2%
1%
3%
53%
21%
Richards Bay
East London
Durban
Saldanha Bay
Port Elizabeth
Cape Town
Mossel Bay
Nature of Cargo Handled 2002/2003
3%
1%
22%
Imports
Exports
Coastwise
Transhipments
74%
Port development upgrade
Port of Ngqura
 R3.2b greenfield development of new port in
the Eastern Cape
 Key port to unlocking potential of 12ha
Coega Industrial Development Zone
 new addition to our deepwater port at depth
of 16 metres to handle new generation large
ships
 Will provide two container terminal berths
and three for general and bulk cargo (phase
1)
 Delivery date is September 2005
Port development projects
Port of Durban
 R1.6bn upgrade of Container Terminal and reconfiguration of the
port
 Redevelopment of Maydon Wharf
 Widening of harbour entrance commencing during 2004
 Possibility of mix-use facilities to support a passenger terminal for
the cruise ship industry
Port of East London
 R10m towards deepening car terminal berth
Port of Richards Bay
 R300m investment to extend the coal terminal to handle
additional capacity
 Addition of a ship repair facility (dry dock)
Port development update
Mossel Bay
 NPA is currently conducting a study to investigate the possibility of
expanding the port and ensuring infrastructure integrity, although
this is intertwined with the fortunes of PetroSA in the main
Cape Town
 R550m towards a Container Terminal Expansion program to meet
future space demand
 Ship repair facility linked to the growth of oil and gas industry off
Africa’s west coast
Port Elizabeth
 Possibilities around the accommodation of Waterfront
developments by making the port more people and cargo friendly
Port development update
Port of Saldanha
 R30 million infrastructure maintenance and renewal throughout
the port
 Recent extensions to multipurpose terminal – additional berths
to handle increased capacity
 Expansion of ore terminal, alterations to oil jetty as well as
infrastructure linkages to hinterland
Security upgrade
 R200m towards enhanced measures at all ports – retraining of
security personnel, fencing and access control, high tech
installations of CCTV
 Port Control - meeting AIS challenges and requirements
 Meeting compliance to ISPS Code of the IMO
Strategic Direction
 NPA’s strategic direction underpinned by the National
Commercial Ports Policy and National Ports Authority
Bill
 The National Ports Authority Bill specifically requires
NPA
– To promote the achievement of equality by
measures designed to advance persons or
categories of persons historically disadvantaged
by unfair discrimination in the operation of facilities
in the ports environment
– Promote greater representivity, in particular to
increase the participation in terminal port
operations of historically disadvantaged persons
BEE Strategy
To accelerate procurement from
black-owned and empowered
enterprises to create new
enterprises with the objective of
growing existing emerging
entrepreneurs to produce valueadded goods and services for the
industry and increase employment
Primary Policy Objectives
 Facilitate access by Black suppliers to NPA
procurement activity
 Ensure that an increasing portion of contracts are
awarded to Black Entrepreneurs and Suppliers with
a clear and evident commitment to Black
Empowerment
 Facilitate entry of Black entrepreneurs into port
related industries
 Create awareness, understanding and support for
Black Economic Empowerment among NPA key
stakeholders
Current Mechanisms Supporting
Policy
 Set aside tenders to enable Black suppliers to compete
amongst themselves
 Set clear targets for NPA business units to increase
expenditure with Black suppliers
 Give preference to traditional suppliers who implement BEE
programmes
 Provide early payment terms
 Proactively create a bias in the process of adjudicating
tenders thereby increasing the business awarded to Black
suppliers
Supplier Evaluation Criteria
 In supplier assessment & assessing tenders i.t.o their BEE status NPA
considers the following areas:
– Black Ownership: Equity ownership, Board Membership
– Black Management: portion of Black executive, senior and middle
management
– Skills Development Programmes: implementation of mentoring and
training programmes for Black workers
– Purchasing from Black suppliers: may include JV’s or partnerships
with Black groups
– Other Empowerment Initiatives: Equity Ownership Schemes,
bursary schemes, etc
Key BEE Opportunities
 Construction projects:
– R1,2bn BEE spend expected over next 3 years (R/Bay,
Durban, Ngqura & Cape Town)
 Maintenance projects:
– R400m BEE spend on electrical, dredging, marine
craft and equipment maintenance e.g. floating cranes
 Provision of security, cleaning and catering services,70%
set aside for BEE suppliers
Key BEE Opportunities (cont..)
Supply of uniform clothing R21m (100%) set
aside for BEE suppliers, disabled and women
groups spread in all ports
Construction of new admin buildings in
Saldanha & Mossel Bay – Set aside 100%
for black contractors – R21m
Oceans of opportunity for BEE entrepreneurs
to participate in terminal operations over the
next 5 years as we seek greater private
participation in our terminals
Past Achievement
2002/3 BEE EXPENDITURE
Total Discretionary
Expenditure
BEE spend
% BEE spend
R1,209,660,220,91
R479,730,619,28
40%
The target for 2003/4 sits at 45% - this is a
moving target and is adjusted annually as
expenditure grows – 50% by 2005
Challenges Facing NPA
 Construction projects remain too big and specialized
 Implementation of our robust supplier development
policy to achieve 50% BEE spend by 2004, and 60%
thereafter
 Fronting by so called “BEE” suppliers
 Established white firms still prefer to deal with BEE on
the basis and only for public sector work!
 Entrepreneurs remain averse to access the really big
opportunities, e.g. owning & running shipping lines,
accessing land for value-added services
Assisting BEE Growth In Maritime
Sector
 Facilitate access by Black suppliers to NPA
procurement activity
 Ensure that an increasing portion of contracts are
awarded to Black Entrepreneurs and Suppliers with
a clear and evident commitment to Black
Empowerment
 Facilitate entry of Black entrepreneurs into port
related industries e.g. warehousing, logistics park
operations, stevedoring etc.
 Create awareness, understanding and support for
Black Economic Empowerment among NPA key
stakeholders
Way Forward
 Communication of major projects and initiatives prior to
commencement (e.g. Ngqura & Durban 2005)
 Entrenching a maritime culture amongst entrepreneurs to
take advantage of coastal mines (Ports!)
 A sharper focus on supplier development to create
meaningful and enduring partnerships
 Removing a culture of entitlement amongst some
suppliers and ensuring they adopt a continuous
improvement culture to drive down costs
Initiatives To Support Primary
Strategic Objective
 Procure at least 60% of ALL discretionary spending
from BEE suppliers within the next 5 years
 Constantly explore ways of increasing the amount of
discretionary spending
 Aggressively support the Proudly South African (PSA)
campaign - use local as opposed to foreign suppliers
 Pursue the ideals of the Maritime Charter
Let us continue the dialogue
Call us at
011 242 4121
NPA HQ Procurement Office
Thank You!