Construction World March 2019

MARCH 2019

COVERING THE WORLD OF CONSTRUCTION

WORLD

CR O WN

P U B L I C A T I O N S

THREE TRENDS for the precast industry

New public URBAN PARK in CAPE TOWN

BOSCH GSH 27 VC PROFESSIONAL The world’s MOST POWERFUL ELECTRIC breaker

BAUMA MUNICH 2019 Preview

REHABILITATION of R75 between PORT ELIZABETH AND UITENHAGE

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CONTENTS

07 The gift What a former executive learnt in his time at the helm of Aurecon.

24 Eastern Cape road project The rehabilitation of the R75 double-carriageway.

08 On-demand bonds: the great distress of contractors The viability of the industry requires forms of securities.

26 Africa’s geotechnical champion What it takes to be a geotechnical leader.

10 'Reshaping our Future Together’ CESA President, Neresh Pather's, theme for 2019.

32 Productivity to the fore Daewoo Novus’s strong drivetrain and fast tipping time.

48 Caterpillar rewrites the rules Caterpillar will display 64 machines at Bauma Munich.

15 Green route to progress in Ceres Increasing electricity to a highly sensitive environment.

18 Exceptional retail performance Flanagan & Gerard’s successful December.

52 Global trendsetter The Wirtgen Group is the global trendsetter.

22 Public urban park in Cape Town Battery Park is a new urban park situated in Cape Town.

54 Three trends for the precast industry in 2019 What is in store for the precast industry in 2019?

Construction MARCH2019 PUBLICATIONS CR O WN COVERINGTHEWORLDOFCONSTRUCTION

WORLD

THREETRENDS for theprecast industry

REGULARS

NewpublicURBAN PARK inCAPETOWN

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Marketplace

BOSCHGSH27VC PROFESSIONAL Theworld’s MOSTPOWERFUL ELECTRICbreaker

BAUMA MUNICH 2019 Preview

Environment & Sustainability

REHABILITATIONofR75betweenPORTELIZABETHANDUITENHAGE

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Property

The demolition hammer from Bosch, the Bosch GSH 27 VC Professional, was introduced into the market for demolition work in concrete, stone or asphalt. With its impact energy of 69 joules, it is the world’s most powerful electric breaker. This tool achieves an average material removal rate of 3,2 tons per hour (in accordance with EPTA Procedure 03/2008), therefore offering 50% more material removal than the predecessor model. A further advantage of the breaker is its vibration of only 8 m/s2, which is thanks to its vibration-reduced hammer mechanism and its de-coupled handles. Read the article on pages 20 and 21

Projects & Contracts

Bauma Munich

Products & Services

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COMMENT

Caterpillar displayed some of the innovations that will be on show at Bauma Munich 2018 at the Malaga Demonstration and Training Centre. On the left is Dr. Samantha Swanepoel, Executive Head: Marketing and Communications at Barloworld Equipment who invited myself and Munesu Shoko, editor of Capital Equipment News (published by Crown Publications) to the pre-Bauma event. Read the article on page 48

Even before Eskom’s current woes, South Africa’s government backed renewable energy to play a more significant role in the country’s future energy mix.

Electricity demand is therefore no longer captive to the national grid (Eskom and municipalities) which impacts supply and demand planning. The Integrated Resource Plan (IRP) envisions the generation of an additional 8 100 MW by 2030 from each of wind and gas, 1 000 MW from coal, 2 500 MW from hydropower and 5 670 MW from photovoltaic energy. Dimming the lights on Eskom Ronald Chauke, the Organisation Undoing Tax Abuse portfolio manager for energy said the draft suggested that the Department of Energy is slowly but surely dimming the lights of Eskom and making way for other supply sources. In what was a prophetic statement, he said that Eskom must revise its business model to diversify its portfolio and be innovative in the generation of new revenue streams for it to be resilient. However, two main barriers accompanying renewable energy in South Africa were the energy innovation system and the high cost of renewable energy technologies. The latter is decreasing which will benefit the escalation of renewable energy. South Africa first introduced the Renewable Energy Independent Power Producers Procurement Programme in 2011. The programme includes an initiative to install 17,8 GW of renewable energy before 2030. The goal of this programme is to reduce greenhouse gas emissions while

In August last year, the energy minister, Jeff Radebe announced that renewable energy will be the Department of Energy’s focus over the next decade (towards 2030) for the generation of energy. It was also envisioned that ageing Eskom plants would be decommissioned, resulting in the supply of 30% less energy by 2040 and a further 20% by 2050. So, realistically, there should be a race on to replace this lost capacity. It is far from a race though. Medupi and Kusile, which have taken years to complete and had serious escalating costs are, for me, the last significant coal fired plants built in South Africa. The downside of this for the construction industry is that Power (the others being Civils, Transport and Water) will be the biggest loser when it comes to its share of what was budgeted for infrastructure in South Africa. According to the annual budget for 2019, Power will only get 12% of the cake as it is far cheaper to build sun, wind and photovoltaic farms than an intricate coal fired power station. Of all the renewable energies in South Africa, solar power holds the most potential. Because of the country’s geographic location, it receives a large amount of radiative energy. Another useful energy in SA is wind energy. A slow-changing landscape Since 2010, the energy generation landscape had been changing rapidly, albeit that there were some serious and long delays. South Africa has commitments to climate change and has introduced renewable energy through independent power producers.

as nuclear and coal. Sadly South Africa is falling behind on renewable energy project implementation, while other nations accelerate their green energy plans. South Africa lags far behind fellow BRICS country China which has 188 000 MW of wind power capacity and 106 000 MW of solar energy capacity. In contrast, South Africa currently has just 2 094 MW of wind and 1 450 MW of solar capacity Rolling out renewable energy is subject to political interference blocking certainty, while there are inadequate renewable energy targets, the fossil fuel lobby, the lack of a plan for a just transition which has impacted trade unions and lack of an enabling and incentivising framework. Towards the end of last year, Radebe signed a R56-billion contract with 27 independent power products but the National Union of Mineworkers has threatened to end its support for the ANC over the deal – saying up to 40 000 jobs in the coal sector could be lost. This has not really been resolved. The clock is ticking. Even though there still are 11 years before 2030, various political and other processes have to be solved before renewable projects can even break ground. The positive is that the construction that is needed for the generation of renewable energy, takes a fraction of the time of a Medupi or Kusile coal fired plant.

Wilhelm du Plessis Editor

minimising the country’s reliance on non-renewable energy sources such

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GROWING WATER SECTOR’S FEMALE ENTREPRENEURS

The GIBB incubation programme to develop women entrepreneurs in the water sector is bearing fruit, with three women-run small businesses already benefiting from the programme to unlock skills and opportunities in this under-developed sector.

GIBB Group CEO, Richard Vries.

A mong the early beneficiaries of the GIBB incubation programme are women-owned enterprises Prana Consulting, MIH Projects, and Nzuza Architects. Providing support to upskill female entrepreneurs in the water sector is a priority for GIBB, a multi-disciplinary engineering consulting firm, in terms of its memorandum of understanding with the South African Water Research Commission (WRC). The memorandum is part of the Women in Water Incubation Programme launched by the Department of Water and Sanitation, with the Water Research Commission (WRC) as implementing agent. “We are proud to be part of this initiative,” said GIBB Group CEO Richard Vries. “We need to draw more women-owned businesses into the business field, and this incubation programme allows us to do that. By empowering these businesses, we create partnerships that will benefit large and small organisations in the sector.” In terms of the incubation programme, GIBB provides its Enterprise Development (ED) partners with support to strengthen current and future suppliers in its value chain. GIBB aims to instil 90 women in the programme – 45 in the entrepreneurship incubator project and 45 in a mentorship project. One of the needs expressed in the Women in Water Programme has been for support in gaining ISO 9001 certification. To achieve this, GIBB has started a support process to prepare ED partners for certification by assessing systems at incubator companies, identifying gaps and developing a roadmap towards certification.

“The gap analysis and guidance we received from GIBB on quality management processes has been invaluable,” said Refilwe Lesufi of Prana Consulting. “ISO certification is fundamental to gaining work on bigger projects. We’ve seen how committing to ISO certification generates a company culture of doing things right.” “The GIBB peer review of our company has added a lot of value to our output,” Lesufi said. “We have seen real benefits from our relationship, in terms of support, mentorship and knowledge sharing. The WRC has also helped us to form partnerships with players in the industry.” Through the WRC, Lesufi’s company was invited to attend the Bill and Melinda Gates Foundation’s ‘Reinvent the Toilet’ Expo in Beijing recently, showcasing new innovations in sanitation. “Since the expo, we are looking at finding hybrid sanitation solutions using local and international technologies to suit our local conditions. Local manufacture of some of these solutions could help boost employment, and make maintenance more practical,” said Lesufi. Vries said that despite current moves towards SMME development, there was still room for more political and practical will to really empower SMMEs to participate in the sector. “It will take an active ongoing drive from politicians, the public and the private sector to create enough relevant opportunities for small enterprise in the sector,” he said. 

SMART SOLUTION FOR INFRASTRUCTURE MANAGEMENT

Bosch Munitech – a member of the Bosch Holdings group of multi-disciplinary consulting engineering companies – offers municipalities a smart solution for infrastructure management, by assessing assets in the field and transferring the information to a desktop platform.

E ngineers, field technicians and geographical information system (GIS) specialists in the Bosch Munitech team, have developed an efficient system to spatially represent fixed assets, in an accessible desktop format. “The on-line asset registry system includes spatial, technical and financial information, which is used to establish refurbishment costs, routine service and maintenance costs, as well as the costs associated with capital replacement of aged infrastructure,” says Sean Nel, project manager, Bosch Munitech. “The asset register is not only used as a planning and management tool, but also provides accurate data for annual general reporting to the Auditor General of South Africa. “To date, all municipalities we have assisted, have received clean audits. Our team’s extensive experience enables us to compile asset registers that are invaluable to our clients, both as an infrastructure management tool and for ensuring audit compliance.” 

Bosch Munitech offers municipalities a smart solution for infrastructure management, by assessing assets in the field and transferring the information to a desktop platform. The team is conducting a residential and water meter audit for the eThekwini Municipality.

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Lifting SA’S LIFE-SIZED HERITAGE History was hoisted high recently as Johnson Crane Hire lifted life-sized bronze statues from the Long March of Freedom collection to move them to a new home.

T he exhibition of 96 important historical figures celebrate 350 years of South Africa’s history through the lives of those sculptured. It has been on view to the public at Fountains Valley in the City of Tshwane since September 2015 and is being relocated to the Maropeng Visitors Centre at the Cradle of Humankind in Mogale City. The National Heritage Project Company commissioned Johnson Crane Hire to move the heavier statues. These included the sculptures of • Chief Kgosi Kgamanyane Pilane, chief of the Bakgathla-ba-kgafela • King Maqoma, Xhosa military commander and King of the Ngqika Xhosa • King Hintsa Kakhawuto of the house of Phalo, paramount chief of amaGcaleka and King of the Xhosa • Paramount Chief Sandile Kanqika, chief of amaNgqika and paramount chief of the amaRharhabe Xhosa “We were very proud to have been asked to move these historically

important statues,” says Cedric Froneman, sales executive for key accounts at Johnson Crane Hire. “The larger statues were lifted using our Liebherr LTM1030 2.1 all-terrain mobile crane with 35 ton capacity and transported on a low-bed truck.” According to Froneman, the statues each weighed about 1 000 kg or one ton and were wrapped for protection before lifting. They were then lifted with polyester slings under the experienced direction of a rigger to avoid damaging them. The works have been enjoyed by thousands of domestic and international visitors, and the new, well-developed venue promises to improve the exposure of these statues to general public. The Long March to Freedom collection is planned to grow into a procession of over 400 bronze statues over time. Visitors can walk through the loosely spaced procession, beginning in the 1700s with rebel chiefs and renegade missionaries. The historical progression moves along generations of freedom fighters, until they meet Walter Sisulu, Oliver Tambo and Nelson Mandela at the dawn of South Africa’s democracy. 

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THE GIFT On 1 February this year, I walked out of the office from executive life and into sunny retirement. After 1 460 days at the helm of Aurecon, I am now starting Day 1 of life’s next adventure. Am I looking forward to it? Absolutely. Will I not know what to do with myself? Most probably. But one thing I know for certain: I’ll sip my first coffee in the morning and linger on the veranda, and delight in immense gratitude for these past four years and all the many things I’ve learnt. By Giam Swiegers

W ith the season of giving behind us, I reflect on some of the truer, more lasting gifts I’ve been given the kind that you just keep unwrapping. So, what have over 7 500 employees, a fair share of challenges, and a million good moments at Aurecon, given me? The gift of limitation When I stepped into my role four years ago, I had to answer a recurring question: what business does an accountant have in leading a bunch of engineers? It was a very fair question, and one I had to ask myself many times over. I could speak the common language of capital and cash flow, but the language of bridge building was outside my vocabulary. It was as if I’d been trained my whole life to be a tennis pro, and someone walked into the room and handed me a golf club. Luckily, this is a lesson I learnt early in my career; there are some things I can do very well, and others I shouldn’t even try to do. My job would be to find talent who are able to, and then help them to do it even better. When you work on your strengths instead of focusing on what you aren’t particularly good at, something extremely powerful takes place. You learn the true art of collaboration. You start listening and inquiring, and observing what needs changing. You develop a sense for possibilities. And then you hone, you chisel away, you excavate and you dare to be audacious and you put the right leaders in place. You move things forward disproportionately, because you focus on finding masterfully skilled people and you are empowering them to do what they truly love. You play to their strengths, make peace with your weaknesses, and champion the collective contributions towards a collective win. And then you appreciate, all the more, how overcoming limitations has allowed us to move beyond the power of one, setting a snowball effect of inspiration into motion. The gift of problems And then there’s the issue of problem solving. As an auditor, it’s imperative to be skeptical. The job of the auditor is to dig out discrepancies and look for the gaps that could engulf an

organisation’s momentum. Problems present roadblocks and need to be removed. But engineers, on the other hand, see problems through an entirely different lens, where the problem becomes a springboard to solutions. Often, inside the problem is the DNA for breakthrough innovation: it simply needs to be unscrambled and reassigned to unlock the answer. Once the thinking behind the solution becomes logical to an engineer, the aim is to improve it, rather than to break it down. This requires a courageous culture, but the result is that highly creative solutions are formed out of the cracks. Obviously, problems are enshrouded in the unknown, and mistakes have been made along the way. But aspiring to get it right 100% of the time will most likely derail your chances for real competitive advantage, because mistakes inform better solutions. And, as a culture of ‘falling forward fast’ has been nurtured, the unknown has not been seen as a handicap but a breeding ground for true innovation. Some of our most rewarding moments came out of mind-stumping scenarios, where we were able to ‘crowdsource’ the design process and see what came back in the form of new solutions. For example, the roof design of a prominent building in the Middle East was a conundrum solved, after throwing the problem out to the Aurecon community worldwide and gaining nine workable designs in six weeks. The outcome was a completely transformative and original design.

As a culture of ‘falling forward fast’ has been nurtured, the unknown has not been seen as a handicap but a breeding ground for true innovation.

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The gift of complexity Aurecon has allowed me to ask the question, ‘why?’ Why do we do the things we do, and what problems do we really want to solve? It’s the single most important word embedding our activities, because it’s the only word big enough to incorporate the complexity of a global digital world in shift. Moving beyond the traditional ‘fix it’ approach has meant a complete step change in how we engage with our clients. Now, rather than sitting back and receiving known problems to solve, we are going out to find problems that clients don’t even know they have. The deep complexity of accelerating change has demanded a broader definition of design and an attitude that can, as Ben Hamley puts it: “love uncertainty, and lean in on the chaos”. It has paved the way for our Design Academy and design thinking as a

way of Aurecon life an altogether different way of future building that embraces human skills, talent and ability as its cornerstones. I’ve loved the journey, of seeing contributions unlocked and silos overturned in a collective design experience that has bred beautiful optimism and bright talent to shape our future world. So, as a way of saying thank you, what would be my gift back to the greater Aurecon community? I think a simple encouragement to say, keep doing what you do. Keep steady on your tiptoes, peeking into the future and pulling it towards you. According to Indra Nooyi: "The more we can break the rules, the better off we’re going to be." Be radical in your research and deliberations; don’t fear risk. And keep telling yourself and others the success stories that inspire more transformative and meaningful design. Together, they form a narrative which I’ve decided to entitle ‘Aurecon: the privilege was all mine’. 

On-demand bonds: THE GREAT DISTRESS OF CONTRACTORS Construction projects are complex and risky. For this reason, the viability of the industry requires forms of securities, including on-demand bonds. By Kelly Stannard, Associate, MDA Attorneys

A n on-demand bond is a contract between an employer under a construction contract and an independent guarantor (usually a bank) which allows the employer to demand the bond amount for immediate payment without needing to prove that it has suffered a loss. Whether or not there are any pending disputes between the employer and the contractor, the guarantor is obliged to pay the total guarantee amount to the employer unless there are exceptional circumstances. The guarantor will then recover the paid-out amount from the contractor. For employers, on-demand bonds are an ideal form of security – they can be quickly enforced and their effectiveness is legally certain. But, for contractors this form of security can be devastating, potentially resulting in their liquidation. There may be a need to develop alternative security options that are effective while being fair. Pay now, argue later Because on-demand bonds allow for a “pay now, argue later” scenario, employers are increasingly abusing on-demand bonds to obtain cash quickly, instead of risking or waiting for a long and expensive dispute to be resolved under the underlying contract. Given South Africa’s cash-strapped construction sector, at MDA Attorneys we are seeing more cases where employers cash in on bonds even where they may not have actually suffered loss as a result of the contractor. While this action provides quick cash flow for employers, it devastates the contractor’s cash flow. The employer is paid now but the contractor may not survive to argue later. Often the contractor has a legitimate dispute that would have been won if dispute resolution proceedings were followed, making this situation severely prejudicial for contractors.

Alternatives A current alternative bond in South Africa is the conditional bond. It differs from an on-demand bond in that the employer has to prove the liability of the contractor before the the will cash out the bond. Employers specifically looking for the speed and certainty of an on-demand bond are unlikely to accept a conditional bond as a compromise. In the United Kingdom, a third type of bond has been developed, namely the adjudication bond. This is principally an on-demand bond, but the demand must be accompanied by an adjudicator’s decision. This means that the employer must have proven its case against the contractor and obtained an adjudicator’s decision in its favour before it can make a demand under the bond. This type of bond could offer a compromise that employers are willing to accept. As adjudicator’s decisions can be fairly quickly obtained, it upholds to some extent an employer’s desire for a prompt remedy, while affording the contractor some fairness in that its argument will be heard by an adjudicator now rather than later. The implementation and enforcement of adjudication bonds will not be without challenges. The underlying contract and the bond will need to speak to each other in respect of the adjudication provisions. Situations that may obstruct the effectiveness of the bond need to be considered – Adjudication may be impossible (if the contractor is liquidated, for instance) and the fact that there is no legislation in South Africa to regulate adjudication. These problems could be addressed with the help of legal and financial professionals. The time may have come to try effective and fair alternatives to the on-demand bond. 

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‘RESHAPING OUR FUTURE TOGETHER’ Consulting Engineers South Africa’s (CESA) President, Neresh Pather, presented his presidential message and theme for the year at a function held in Johannesburg on 30 January. Pather’s 2019 theme is ‘Reshaping our Future Together’ focusing on changing social norms by ‘Doing what is Right'.

“Sound planning and good feasibility studies incorporating innovative technology for the development of infrastructure is needed to drive economic prosperity and growth”.

P ather began his presentation by stating, “All South Africans can be mobilised to participate and actively reshape our economy, our country, our projects, our government and ultimately our lives. It starts with us!” Pather in his opening remarks said, “President Ramaphosa’s renewed focus on the basic education sector specifically around maths and science and the development of skills will ready us for the 4 th Industrial Revolution”. Over and above this the President’s call for further investment into Africa and latest statistics showing increased interest in South Africa as an investment

destination are all positive indicators for the start of 2019. Delivering purpose and engagement – establishing trust There is a strong focus within CESA on working with and supporting Government, with increased collaboration with National Treasury on Procurement, the Auditor General’s office on compliance support, together with partnering agreements with Client Bodies like SANRAL, Transnet and COGTA allowing CESA to contribute positively in terms of support that includes capacity building, skills development,

compliance and good governance. He says that the 17 UN Sustainable Development Goals (SDGs) provide us all with the perfect platform to deliver purpose and engagement and a way for us to build trust between the public and private sectors. Pather said that during 2018 CESA was involved in detailed engagements to address the current challenges and the way forward with all of these organisations including entering into dialogue with the Parliamentary Appropriations Committee. CESA also met with the Minister of Education. The organisation met with ECSA, SABTACO, SAICE and BBCBE in a bid for

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broad industry collaboration.

account of our own future without waiting for someone else to do this. Implementation is key and CESA will be focused on assisting Clients to focus on delivery and action as opposed to just talking about it. He believes that through ‘Working together’ – industry bodies can assist in driving specific mandates, clients can focus on driving project management and delivery teams need to focus on driving execution. Skills, capacity and competence Pather believes that there is a strong need for collaboration of industry bodies and key stakeholders for collective benefit as opposed to diluting effort – working with universities, learned institutions and research bodies to drive our education system but also training people sufficiently in both the private and public sectors to undertake the roles they are meant to play in delivering infrastructure. This can be undertaken through the CESA School of Consulting Engineering, the Thuthuka Bursary Programme, SAICE Road to Registration, as well as the CESA Business of Consulting Engineering (BCE) Development Programme etc. Pather strongly believes that collectively the industry needs to address the issue of the importance of engineers as well as focus on creating the right narrative to be

able to attract young engineers into the Built Environment and infrastructure space to make sure that sustainability and relevance is ensured. In addition, Pather notes that the latest industry statistics relating to transformation shows an alarming picture notwithstanding all of the efforts being made in promoting and encouraging greater numbers of black engineers to enter the industry, the numbers tell a different story. He adds that the results are not going to change overnight. This is largely due to the decreasing workload in engineering, driven directly through economic decline. “The use of technology to speed up delivery and to properly satisfy demand will soon become a reality for all of us. We need to start future-proofing our teams and reinventing our service offering to embed technology going forward. All of these advances will be targeting faster design, more cost-effective solutions and more consistent delivery of infrastructure and construction projects from both a time and cost perspective, says Pather. CESA represents close to 560-member firms employing over 21 000 people. Through its focus on quality and the credibility it has created with various client organisations it represents the hallmark of competence, integrity, and quality in the consulting engineering industry. 

Value for money, resilience and sustainability These initiatives include working towards capacitating infrastructure teams appropriately, in all client organisations, ensuring that the appropriate technical skills are used in decision making related to infrastructure development by ensuring the relevant skills and competence are utilised. Pather states that there needs to be a strong focus on providing ‘value for money’ infrastructure. More focus needs to be placed on calculating the best possible infrastructure solution based on the total life cycle costing of the project and not on procuring the lowest cost design fees which make up only approximately 3% of the lifecycle cost of a project. Pather states, “Sound planning and good feasibility studies incorporating innovative technology for the development of infrastructure is needed to drive economic prosperity and growth”. Ownership and accountability through activism, volunteerism and values Pather states we need active citizens taking

Pather believes that there is a strong need for collaboration of industry bodies and key stakeholders for collective benefit.

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ENTERPRISE DEVELOPMENT PARTNERSHIPS BEAR FRUIT

WorleyParsons’ Enterprise Supplier Development (ESD) programme has achieved significant success within its first six years of operation, highlighting the benefits of sustainable and collaborative enterprise development partnerships.

T hrough the programme WorleyParsons has been able to streamline its operations with a ready availability of capable specialist suppliers, while its ESD partners have expanded their capabilities and foothold in the market place. Six years ago WorleyParsons launched its comprehensive business assistance programme that would simultaneously benefit entrepreneurs and stimulate growth in the national economy. The objective was to source emerging business partners for WorleyParsons and form collaborative and symbiotic working relationships that could transfer valuable resources to ESD partners. Today the ESD programme provides mentoring, support, skills and knowledge transfer, multinational brand leverage and partnership for 13 dynamic local businesses throughout the region. Gladwin Mfolo, Senior Project Manager at WorleyParsons, elaborates on the ESD programme’s growth trajectory, and some recent success stories. “The ESD programme is starting to bear fruit as we find more opportunities to make a sustainable difference and grow with our development partners,” enthuses Mfolo, adding that the programme’s progress has aligned well with its original objectives. As the programme matures, WorleyParsons expects to see more and more joint delivery of services while exposing their partner SMEs to world-class delivery systems and transferring skills and capabilities in the hydrocarbons, power, infrastructure, minerals, metals and chemical sectors. Mfolo says that while WorleyParsons provides their ESD partners with on-site support such as transportation, accommodation and access to site, the companies work independently on projects, much like any other sub-contractor managed by WorleyParsons. Mfolo notes NBi Quantity Surveyors, an extended partner within the ESD programme, as one of its most recent success stories. The black-owned cost engineering consultancy firm is providing quantity surveying services to the De Beers Venetia Underground Project for which WorleyParsons is providing engineering, procurement and construction management (EPCM) services. NBi Quantity Surveyors is currently six months into their three-year contract for the project and Mfolo says that as they progress their scope of work will no doubt expand. “This partnership is a great example of how we envisaged the ESD programme to work, as WorleyParsons can source specialist capabilities within its ESD partnerships, and our partners can be exposed to larger markets and more opportunities,” says Mfolo. NBi Quantity Surveyors has over 12 years’ experience in providing all aspects of quantity surveying services to the built environment, mining, rail, and engineering sectors, with a specific focus on the mining environment, and has already completed projects for a wide range of clients. ST Nubian Architects, a Level Two B-BBEE architectural and project management firm, is another example of a success story within the ESD programme. Mfolo says that when ST Nubian Architects, an extended ESD partner, was approached to submit a tender to transform a basement parking lot at the University of Johannesburg into a simulated underground mining environment, they turned to WorleyParsons for practical mining expertise. “ST Nubian Architects was awarded the contract as their tender

was the only one to include input from a

mining engineer. This is a good example of how our ESD programme assists partner companies to tap into a new market in an efficient and collaborative way,” says Mfolo.

Gladwin Mfolo, Senior Project Manager at WorleyParsons.

Established in 2006, ST Nubian Architects has successfully delivered projects covering a wide range of disciplines and is committed to transformation and skills development, as well as running a successful graduate training programme. Backed by Uruguay-based ST Architects, the company has been exposed to projects all over the world, including the United States and Spain. Mfolo says that the inclusion of MMRisk as a core partner is a further recent highlight of the ESD programme. This 100% black South African-owned process safety and risk consultancy specialises in the provision of process safety and risk management services. The company was invited to join the ESD programme as WorleyParsons recognised the benefits of having on-hand risk resources while simultaneously exposing MMRisk to a wide range of clients. WorleyParsons’ ESD programme is crucial to the company’s corporate and social responsibility agenda, which calls for active participation in addressing socio-economic challenges in South Africa as well as transformation in the engineering sector. It is divided into three levels: • ED Core Partners – companies that seek the assistance of an enterprise incubator programme, as well as the growth potential through partnership with WorleyParsons. • ESD Extended Partners – companies that are established in their own right and seek to partner with WorleyParsons to execute major projects. • ESD Alumni Partners – companies that have graduated from the WorleyParsons ED Programme and continue to work closely with WorleyParsons to tender for work and execute projects. “The ESD programme is making a sustainable difference by creating opportunities for our ESD partners and allowing them to grow. This all falls in line with our original objectives, and WorleyParsons will continue to expand on this programme,” concludes Mfolo. 

“This partnership is a great example of how we envisaged the ESD programme to work, as WorleyParsons can source specialist capabilities within its ESD partnerships, and our partners can be exposed to larger markets and more opportunities.”

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ENVIRONMENT & SUSTAINABILITY

Results of 2018 INTERNATIONAL COASTAL CLEAN-UP

The plastics and packaging industry taking action Through its active involvement each year, the plastics and packaging industry has proven that its concern for marine litter is not just an awareness project, but a driving passion that transforms actions into words. However, their work is not only limited to one day or one month of the year. Instead, several weeks are spent on pre- event logistics (such as distributing bags, gloves and other support material) to ensure that the material reaches the 400 coordinators nationwide and that South Africa’s involvement in the International Coastal Clean-up takes place without a hitch. “Without the commitment and involvement of our partners, last year’s event would not have been possible. In a time of harsh economic conditions, when companies find themselves having to rethink supporting projects such as these, it is encouraging to see the continued commitment from large corporates such as Plastics|SA, Dow, Sasol, Coca-Cola, Kelpak, Pick n Pay, Toyota Algoa Bay, UNITRANS, PETCO (PET Recycling Company), POLYCO (Polyolefin Recycling Company), SAVA (SA Vinyls Association), the Polystyrene Association of SA, Tuffy Manufacturing, Woolworths, the National Recycling Forum, the Glass Recycling Company, the Paper Recycling Association of SA, Metpac-SA, Tetrapak, ROSE Foundation, Department of Environmental Affairs, Ocean Conservancy and the African Marine Waste Network,” Kieser said. Interesting statistics from the 2018 International Coastal Clean-up: • 4 300 kms were covered to distribute material and arrange logistics over a four-week period. • 50 000 refuse bags were distributed during September 2018 • 10 800 pairs of gloves provided • 80 plastic buckets and 85 garden rakes provided by Addis “It is encouraging to see how each year’s International Coastal Clean- up continues to grow in the amount of volunteers participating, but also the amount of beach clean-ups which are being initiated and driven by communities and volunteers. These community efforts have a domino-effect as they not only highlight the growing need for groups to sort material for recycling purposes, improved waste management systems and more recycling facilities to be established around the country, but ultimately result in less litter ending up in our oceans,” Kieser concludes. 

The results of the 2018 International Coastal Clean-up, which took place on Saturday, 15 September 2018, have just been released. For more than two decades, thousands of South African volunteers have been joining the rest of the world on the third Saturday of September to remove, collect and document the litter from our country’s coastlines. D uring the 2018 event, 19 563 volunteers collected 241 425 items nationally in audited clean-ups that took place along the country’s 2 500 km long coastline,” reports John Kieser, Sustainability Manager of Plastics|SA and Western Cape ICC coordinator of this annual event. (Although this is the official figure, many more volunteers and kilograms of litter were removed at unaudited clean- ups that took place throughout South Africa and throughout the month of September.) Top pollutants on South Africa’s beaches According to Kieser, the most recent results showed that broken down plastic pieces, foam pieces, cigarette butts, bottle caps, food wrappers (such as chip packets and sweet wrappers), glass pieces, beverage bottles, straws and lolly sticks continue to be the biggest pollutants on our country’s beaches. Asthma pumps were the most prolific medical items found in the three Cape provinces, whilst in KwaZulu-Natal (especially in urban clean-ups), it was disposable syringes. “The main cause of litter on our beaches and in the marine environment, is irresponsible human behaviour. The improper disposal of waste and a lack of waste management infrastructure are the two biggest issues that need to be addressed and corrected,” he stressed. Kieser added that the increase in the amount of disposable diapers found illegally dumped (especially around informal settlements) was another area of concern, whilst nationally, approximately 2,5 km of rope/string and 2,8 km of monofilament line (fishing line) were also removed from our beaches.

Climate change is a real problem, it is not just going to go away simply by looking the other way. It is a serious issue that needs to be recognised and addressed. The issue, although fundamentally and most importantly an environmental one, also has a ripple effect which negatively impacts businesses and the economic climate at large. THE TRUTH ABOUT CLIMATE CHANGE

T he most obvious impact to South Africa’s economics through climate change will be to the Agricultural Sector. In a farming country like South Africa, the Agricultural Sector is of vital importance to the country’s economic stability. Climate change directly affects the production of crops which in turn puts the sector’s agricultural output at risk. However, the Agricultural Sector is not the only industry at risk. Climate change affects all businesses to some degree through the impact it has on resources – either directly, such as water supply, or indirectly, such as electricity. Many businesses in the Western Cape, for example, faced a real challenge with the drought and water problems. Resources that had been allocated towards helping to maintain and grow businesses had to instead be put towards

maintaining the facilities’ most basic natural resources. Recognising that there is a problem, although important, is not sufficient in and of itself. Further action needs to be taken to “understand” the problem and to “implement a solution”. John J Coetzee, CEO of Green Worx Cleaning Solutions, states; “Our world is in real trouble, but we have the means at our disposal to educate ourselves about the dangers and risks and to readjust our behaviour for the best possible outcome. There are many things that we can do, for instance not using cleaning products that pollute the air.” The issue lies mainly in the Volatile Organic Compounds (VOCs) found in chemical based cleaning products, perfumes and paints. These react with other chemicals in the atmosphere and create a harmful ozone which can lead to breathing and health problems to

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those who inhale it. Air pollution also directly adds to and impacts climate change. The world simply isn’t able to keep up with the harmful chemicals and pollutants society is adding to the atmosphere every day. According to Alastair Lewis, professor of atmospheric chemistry at the University of York; “It’s hard to say how much pollution is down to VOCs, but a rough estimate is that between one quarter and a third of all particles are made up of organic compounds that originate as VOCs.” It is thus essential that practices and technologies be shifted to reduce VOCs. Reducing the country’s carbon footprint by altering everyday practices (such as car-pooling to work and shifting to innovative bio-enzyme cleaning products, for example) make a much larger impact than many realise.

“It is in our everyday habits that we generate the most pollution. The small things that you don’t even think of often have the largest negative effect on the environment, our families and our businesses. These are the things that are used regularly and in our everyday environment. Fortunately, that also means that they are the things we have direct control over, they are the things we can change to ensure a healthier future for ourselves, our loved ones, the economy, and our world,” concludes Coetzee. 

An increase in the electrical power supply to Ceres in the Western Cape is vital for the economic survival and growth of this area, but the only viable transmission corridor presented engineering challenges and threats to a highly sensitive environment; however, working closely with their client, leading scientists SRK Consulting found a way through. GREEN ROUTE TO PROGRESS IN CERES A ccording to Matthew Law, principal environmental economist and management consultant in SRK’s Cape Town office,

Existing powerline in the Gydo Pass.

the firm’s environmental impact assessment (EIA) had established that the natural and cultural environment in the Michell’s Pass valley, the corridor selected by the client after a feasibility analysis, was incredibly sensitive. “The powerline project required about 7 km of access roads and over 60 new pylons for the 17 km of double-circuit 66/132 kV powerline,” said Law. “The challenge was that a large portion of the valley is formally protected due to its environmental importance, and there are numerous terrestrial and freshwater Critical Biodiversity Areas, including pristine wetlands and seeps, as well as threatened vegetation types.” In addition, the powerline corridor traverses a provincial heritage site – the ‘Old Toll House’ – where tolls were collected from users of the pass along the route, built by Johan Mostert around 1765. As well as intact remnants of the original pass, Stone Age rock paintings and Boer War redoubts are also present. Furthermore, the pass is classified as a ‘scenic route’, and the natural beauty of the area makes it an important tourist attraction, including steam railway tours through the valley. “Given the sensitivity and extent of the site, as well as the complexity of the receiving environment, it was crucial to conduct a dedicated assessment of individual pylons, powerline spans and access roads,” he said. A method had to be devised to assess the impacts and plan for the management of each of the 60 pylons through a single EIA. “To do this, we assembled a team of socio-economic, visual, heritage and terrestrial and freshwater ecology experts,” he said. “Their initial role was to map the sensitivity of a 300 – metre wide powerline corridor based on desktop sources and a ground – truthing exercise.” The outcomes of this specialist mapping exercise allowed SRK to ‘negatively map’ environmentally sensitivity No-Go areash, and to overlay the client’s preferred development alternative on this map, thereby identifying areas of particular biophysical and cultural concern. “The EIA team – together with the client’s engineers and environmental managers – then hiked the route on foot visiting each area of concern,” said Law. “This allowed SRK and the client’s engineers to ‘micro-site’ the access roads and pylons outside the exceptionally sensitive areas we had identified.” Specialised GPS equipment facilitated the exact identification of the optimal locations “Negative mapping, and in-field collaborative

project planning turned out to be a particularly valuable exercise, in which we could demonstrate to the engineers precisely what we were trying to achieve, and why,” he said. “This approach allowed environmental constraints to feed directly and effectively into project design.” To deal with residual environmental impacts, SRK developed a detailed Environmental Management Programme (EMPr) that addressed specific environmental management requirements for each of the project sites separately. “Specific environmental management measures ranged from helicopter access where the environmental impact of access roads would not be acceptable, to restrictions on blasting at sites in close proximity to a pair of nesting Verreaux's eagles,” said Law. In the final plan, about 50 000 m 2 of vegetation needs to be cleared for the project, but only 800 m 2 of this in threatened vegetation types. “This limited biophysical impact was a remarkable achievement for a project of this scale in such a sensitive environment,” he said. “Furthermore, no archaeological artefacts would be disturbed; however, the visual impact could not be fully mitigated, and was found to be of high significance in this scenic valley.” He emphasised, however, that the EIA also recognised the socio-economic challenges facing the local community, and that these challenges are exacerbated by electrical supply constraints. “Ultimately the authorities determined that the economic and social benefit of the powerline outweighed residual ecological and visual impacts,” said Law. The project took 18 months from appointment to submission, and the Department of Environmental Affairs issued Environmental Authorisation in less time than allocated by legislation – a significant accomplishment for a project of such complexity. 

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PROPERTY

RE-RATING ON THE CARDS FOR SA REIT SECTOR South Africa’s real estate investment trust (SA REIT) sector is heading for a re-rating; the question is whether the sector will rally this year or next? A lready, the FTSE/JSE SA Listed Property Index (SAPY) is out of 2019’s starting

Design-focused hotel TO OPEN IN DOWNTOWN CAPE TOWN

Andrea Taverna-Turisan, SA REIT Association Marketing Committee Chairman.

blocks with its strongest January performance in 10 – plus years since 2007, outperforming all other asset classes. At the end of January, the SAPY was up 9,17%, well ahead of the FTSE/JSE All Share Index (ALSI) at 2.69%, bonds at 1,7%, and cash at 0,6%. Wynand Smit, real estate analyst at Anchor Stockbrokers explains that most SA REITs de-rated during 2018. “Should growth expectations start to improve during 2019, the valuations of the SA REITs are compelling,” he says. A re-rate in the sector would be a big gain for it in 2019 points out Mvula Seroto of Catalyst Fund Managers. “However, this will only be possible if the economic outlook improves, there are positive results from the 2019 general elections, and a reprieve from credit rating agency downgrades.” Mohamed Kalla, Director and Portfolio Manager at Sesfikile Capital, says, “Being quite conservative in our relative rating and growth expectations, we arrive at a 2019 total return expectation of circa 12% for the FTSE/JSE All Property Index (ALPI). The main driver is the attractive – on a relative and absolute basis – initial forward yield and does not factor in a significant re-rating relative to bonds in 2019. However, our forecasts point to a more stable 2020 growth outlook, which should result in better re – rating potential a year from now.” Stanlib Analyst and Portfolio Manager Ahmed Motara believes it is too early to call for a material REIT sector rally in 2019 given South African elections, Edcon concerns and possibly lower retailer rentals are issues to be absorbed by the sector this year. For 2019, Motara anticipates the income return to dominate the total return picture in the REIT sector with 2020 expected to see a return to higher total returns as capital return becomes more evident. According to Capricorn Fund Managers SA’s Howard Penny, who expects 2019 to be a better year overall for SA REIT returns after a disappointing 2018, the jury is out as to whether the sector could re-rate on a relative valuation level this year. “Given worries surrounding rising global interest rates, perhaps the bounce back may have to wait for 2020.” Andrea Taverna-Turisan, SA REIT Association Marketing Committee Chairman, notes, “With the cost of equity having increased substantially in South Africa, management teams of local property counters will need to focus on the pure property fundamentals of their organisations to ensure the property sector will become more robust and better positioned to deliver shareholder value over time.” The SA REIT Association represents South Africa’s R330-billion listed REIT sector. Its members comprise all the country’s listed REITs, which play an essential role in the economy and the lives of South Africans. 

Contemporary South African meets heritage design Originally built by the United Building Society, the hotel’s entrance is Art Deco, while the conjoined building boasts traits of the New Edwardian style of the 1940s. The uniting design embraces each building’s architectural features, while at the same time allowing for different moods depending on the viewer’s perspective, for instance, one façade has window frames of steel while another has the original oak surrounds. Interesting concrete and steel structures are incorporated throughout the hotel. The biggest challenge in marrying the two buildings was their different heights, and the solution gave rise to the tower that hosts the rooftop pool, and allowed for the bar and restaurant to be on the same level as the pool. There’s also a first floor eventing space that can accommodate up to 150 people seated banquet style. “We wanted to take this fantastic conjoined building that has a rich history of Cape Town and create a modern, timeless hotel using South African designers as part of the design DNA,” says international award- winning interior designer Tristan du Plessis, who was responsible for the hotel’s interior. Each of the 32 rooms expresses South African contemporary style, interlaced with a vintage edge. Du Plessis has used carefully chosen South African art pieces and furniture that capture the chic look and feel of downtown Cape Town. Lighting and furniture were sourced from David Krynauw, Gregor Jenkin, Studio 19, Douglas&Co, and Dokter and Misses, with a feature crocodile swing chair from Porky Hefer, while murals from artist David Brits are featured throughout. The foyer is home to an intricate mural created by Cape Town artist Lucie De Moyencourt. The Delft inspired masterpiece is made of 1 800 hand painted tiles depicting a map of Cape Town. Joining the Design Hotels TM stable Design Hotels TM was established in Germany in 1993 and spans the globe in over 50 countries, from mountain tops to world capitals. Member hotels reflect innovative design and architecture, with a strong cultural rooting in hospitality. “Hotels have to create a truly unique and inspiring locally driven experience for travellers staying at them,” explains Tolmay. Being part of the group will expose Gorgeous George to a large community of travellers looking for an inventive and novel experience that will make their stay special, with an original downtown Cape Town feel.  Gorgeous George, a new downtown hotel in the heart of Cape Town, will officially open in March this year. Created out of two beautifully restored heritage buildings, it’s the first hotel in Cape Town to join the Design Hotels TM stable, a hand-selected worldwide collection of privately owned and operated hotels. More than a hotel, Gorgeous George is where refined design and quality meet, an inner-city gathering place for locals and the well-travelled.

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