Construction Machinery & Logistics Business

A Focus on Training & Human Resource Objectives for ETHIOPIAN Infrastructure

Sector…

by Yogesh Bahadur, Consultant (Infra/Energy), India @Bahir Dar, Ethiopia

(Director, PENTACLE Energy & Infra Projects Pvt. Ltd.)

Sustainable Relationships for Sustainable Projects

Infrastructure/Construction Business Scenario Focus: India & Developing Countries

(Africa, Russia, S. America)Last decade has shown exponential growth in Private & Public sector investments in Power/Energy/Hydropower, Roads, Dams/Water bodies, Railways, Housing, Hotels/Hospitality….. ‘in a shrinking world’

India & China have led this growth not only within their own countries, but also as their companies and engineers have moved overseas, especially developing countries in Africa, South America and the Russian Block

IN DEVELOPING COUNTRIES, most of these projects which started over last 10 years of any liberalization /globalization process are in advanced stages of clearances, funding, site development, manufacturing, where everybody is challenged vis-à-vis, the speed of execution, deadlines, etc.

The volumes of international sales for Construction Equipment, as also vehicular & capital equipment are themselves indicative of exponential growth in many such countries, placing great emphasis on optimum performance, minimal slack/idle times; sending signals of alarm amongst EPC contractors, Logistics companies & Developers of the many small to large & mega projects.

Ethiopian Infrastructure : Priorities

Ethiopia spends the highest in Africa on it’s Infrastructure development – roads, railways, dams, etc. (www. capitalethiopia.com)

Transportation Infrastructure was reported to be weak and has been given priority…..large number of local & overseas contractors are active, even around Lake Tana / Bahir Dar

Only 6% of Ethiopia has access to Electricity…it has 30,000 MW of unrestricted hydro potential. The Renaisance Dam construction is PM’s priority #1 and more are planned

Construction of Railway line to Djibouti, Mojo Dry Port and alternative Geo-Thermal, Wind & Solar projects, etc.

Ethiopian Infrastructure : Construction Equipment Leasing

& Renting

According to http://www.ethiopiainvestor.com/ and recent news reports the Construction Equipment & Leasing Business is set to BOOM as consequence of Ethiopia’s Infrastructure development…there could be a huge vacuum soon!

Construction Equipment Rental Business (CERB): Critical Issues of

Ethiopia’s development

Sale of items like excavators and other construction equipment are going up exponentially. Maintenance resources in the process are unable to keep par with the pace of development (common to other developing economies like India). The Rental Business being in nascent stage, Maintenance problems & costs are shooting up!

Ethiopian Infrastructure : Priorities

Ethiopia spends the highest in Africa on it’s Infrastructure development – roads, railways, dams, etc. (www. capitalethiopia.com)

Transportation Infrastructure was reported to be weak and has been given priority…..large number of local & overseas contractors are active, even around Lake Tana / Bahir Dar

Only 6% of Ethiopia has access to Electricity…it has 30,000 MW of unrestricted hydro potential. The Renaisance Dam construction is PM’s priority #1 and more are planned

Construction of Railway line to Djibouti, Mojo Dry Port and alternative Geo-Thermal, Wind & Solar projects, etc.

Construction Business: Logistical Challenges

Compounded to its terrain is the vast diversity and bio-diversity : CHALLENGES BEING FACED BY OPERATORS OF HEAVY VEHICLES, WHICH ARE THE PRIME MOVERS FOR HEAVY CONSTRUCTION MACHINERY….requiring Mainetnance & Repair Facilities and also monitoring of vehicular movements by the owners!

Construction Technology: the needs

Construction Technology is an important application of science, which plays a major role in the social and economic development of modern society. In order to perform this role effectively, construction engineers require a broad understanding of scientific principles, knowledge of materials, applied knowledge of civil engineering and the capacity to analyse and synthesise in order to arrive at solutions. This requires research, team working, and leadership and business skills. And it has to be situated in a social, economic and environmental context that reflects the reality within which the construction engineer finds him/herself.

In Ethiopia, Construction Technology and Management has great role to play in supporting economic development and contribute towards the improvement of the construction industry. This role and contribution input is at different geospatial scales, from the Federal to the local, in both an urban and a rural context. As a country that is moving into a rapid phase of growth, the contribution that construction management can make to ensure that this growth is sustainable is a particularly important one. It is therefore of vital importance that construction Managers are prepared, professionally, to met this growth challenge and contribute to sustainable development.

Construction Technology: the needs

Ethiopia has many reputed colleges for education in Construction Technology like Bahir Dar University, Hawasa University, etc.

These Universities themselves may be serving the purpose to develop engineers and managers, but fact is that Ethiopia, like any developing country in its early growth, lacks the planning skills and the challenges of encompassing growth…very much like India…from where we can offer some insight for fast-tracking Ethiopia!

The pace of development in countries like India was never retarded due to its quality of people (we have best of talent) but inability to recognize the challenges of logistics and issues of manpower in remote areas….the skilled or semi-skilled workers who work & operate machinery in remote locations across complex terrain

The importance of technology such as GPRS tracking & development of skills, ESPECIALLY SOFT SKILLS in terms of mental upbringing, attitude, settling of emoluments and perks, motivation, etc. were noticed too late; but are as much reasons for delays in project completions as the more noticeable issues of clearances, manpower shortages, local issues, cash flow, etc.

Lessons from India : Construction & Infrastructure

Larsen & Toubro (L&T) & GAMMON are some of the largest construction group names in India in terms of direct ownership of Construction Machinery & Equipment

Such companies have piloted infrastructure development in India in a gigantic manner; also now across the world in gulf, Africa and Latin America

They have accomplished this by constantly maintaining excellent performance standards through structured planning and constantly developing their human resources. Most of these companies also run their own vocational training schools.

Private sector sponsored and monitored Vocational and Specialized training institutes have not only helped these companies develop Human Resources at ALL levels and catering to diverse locational sectors, they have also been constantly learning from changing dynamics of FAST TRACK Business….to tailor the training programs as per the CALL OF TIMES.

It also must be pointed out that the Power Minister of India admitted as late as 2006, when India was 15 years into its Privatization and Liberalization, that somehow they forgot about planning for Human Resources!! THIS IS HOW FAST PACE OF GROWTH ACTUALLY MOVES AND CREATES VACUUM…Ethiopia can Beware as such!

Vocational Training : Ethiopia Perspective

India’s ex-Minister for Roads and Transport, Mr. Kamal Nath in 2011 at a conference on Infrastructure had commented that no development can move without Roads in a country, no matter how good India may pride itself for its brain-power; and Roads are of NO USE WITHOUT PROPER LOGISTICS.

LOGISTICS depends on how effectively the vehicles will move on the roads…the trucks& long-bed trailers that carry the goods and heavy construction machinery like cranes, excavators, tipplers, etc.

My only chance of direct interaction with Vocational Training specific to infrastructure business in Ethiopia has been at the Bahir Dar University and the Bahir Dar Polytechnic. The BDU may be producing undergraduates and graduates, but lessons from India point out to importance of ITI level technician training as being key to developing the masses who actually run and/or maintain these trucks and vehicles, operate the construction machinery, remove landslides from hills, shovel the snow from roads on mountains….TASKS THAT KEEP A NATION MOVING.

IN VIEW OF ABOVE, I WAS ASTOUNDED WHEN I FOUND IN BAHIR DAR, MY MARITIME INSTITUTE CAR CANNOT GET A DECENT BODY REPAIR; CARS THAT UNDERGO AN ACCIDENT HAVE LIMITED FACILITIES TO BRING TO INSURANCE QUALITY REPAIRS…SO CARS ARE RARELY INSURED!!

Vocational Training : Ethiopia Perspective

India’s ex-Minister for Roads and Transport, Mr. Kamal Nath in 2011 at a conference on Infrastructure had commented that no development can move without Roads in a country, no matter how good India may pride itself for its brain-power; and Roads are of NO USE WITHOUT PROPER LOGISTICS.

LOGISTICS depends on how effectively the vehicles will move on the roads…the trucks& long-bed trailers that carry the goods and heavy construction machinery like cranes, excavators, tipplers, etc.

My only chance of direct interaction with Vocational Training specific to infrastructure business in Ethiopia has been at the Bahir Dar University and the Bahir Dar Polytechnic. The BDU may be producing undergraduates and graduates, but lessons from India point out to importance of ITI level technician training as being key to developing the masses who actually run and/or maintain these trucks and vehicles, operate the construction machinery, remove landslides from hills, shovel the snow from roads on mountains….TASKS THAT KEEP A NATION MOVING.

IN VIEW OF ABOVE, I WAS ASTOUNDED WHEN I FOUND IN BAHIR DAR, MY MARITIME INSTITUTE CAR CANNOT GET A DECENT BODY REPAIR; CARS THAT UNDERGO AN ACCIDENT HAVE LIMITED FACILITIES TO BRING TO INSURANCE QUALITY REPAIRS…SO CARS ARE RARELY INSURED!!

Collaborating keHINDgar !!

For 50 years, ACCURATE GROUP, PUNE/INDIA has pioneered the manufacture of Quality Measuring Instruments in India. We offer a comprehensive range of 3D Co-ordinate Measuring Machines (CMM), Auto Gauging Stations, Air Gauges, Standard Room products, Measuring machines, Calibration masters and Tool pre-setters whereas our services include Third Party Inspection and NABL accredited Calibration Services to cater to the needs of Industry.

THE KEY TO OPERATION & MAINTENANCE OF MACHINERY IS ABILITY TO MEASURE ACCURATELY, ABILITY TO ASSESS & EVALUATE, ABILITY TO SOLVE PROBLEMS IN COURSE OF NORMAL OPERATION & DISASTER. “PENTACLE & MR. YOGESH ADDRESS THESE ISSUES THROUGH FACILITATING OVERSEAS EXPERTISE, TOOLS & INSTRUMENTS IN 3 STEPS:

STEP 1. GAUGING & INSTRUMENTATION

Manpower Resources for Construction machinery must also have good knowledge of latest tools, processes and instrumentation …which is key to carry out troubleshooting and repairs on Fast Track!! ON THE REGULAR SLOW TRACK…EVERYTHING GOESETHIOPIA HAS TO GET OUT OF STATE OF ‘KASBAKAS’!!!

Collaborating keHINDgar !!STEP 2.

DEVELOPING LOCAL ENTERPRISE & EDUCATION TOOLSTHE VAST OPPORTUNITIES FOR OVERSEAS CONTRACTORS WORKING ON ROADS,

RAILWAYS, DAMS, WATERWAYS, TUNNELS, POWER PROJECTS, ETC. NECESSITATES LOCAL SKILLED & SEMI-SKILLED LABOR SUPPORT BY TYPICALLY “LABOUR CONTRACTORS”. THESE LABOUR CONTRACTORS GRADUALLY HAVE GRADUATED TO DECENT SIZE CONTRACTING COMPANIES IN INDIA.

LABOUR CONTRACTORS PER SE, ALL OVER THE WORLD ARE TYPICALLY SKILLED TECHNICIANS WHO ARE ALSO SHREWED BUSINESSMEN & HUMAN RESOURCE ADMINISTRATORS.

EFFECTIVE LABOUR CONTRACTORS ARE A BOON TO OVERSEAS & LOCAL INFRASTRUCTURE COMPANIES SINCE THIS WAY THEY LIMIT THEIR DIRECT MANPOWER HIRING OR BRINGING OVERSEAS LABOUR TO A FOREIGN COMPANY.

BAHIR DAR STILL LACKS QUALITY “LABOUR CONTRACTORS” WHO CAN INSTIL FAITH IN OVERSEAS PLAYERS. AS A STRATEGIC LOCATION IT WOULD BE HIGHLY BENEFICIAL IN LONG RUN TO DEVELOP SUCH CONTRACTING ENTERPRISE IN ALUMNI OF VOCATIONAL TRAINING INSTITUTES

B. MR. YOGESH, HIS ENTERPRIZE PENTACLE ENERGY & INFRASTRUCTURE PVT. LTD. INTENDS TO:• SUPPORT THE BAHIR DAR UNIVERSITY AND POLYTECHNICS IN DESIGNING

SPECIALIZED PROGRAMS TO ENCOURAGE AND CHANNEL SUCH ENTERPRISE• BRING OVERSEAS CONTRACTORS WHO WILL COLLABORATE WITH ABOVE

ENTREPRENEURS TO CREATE LOCAL BUSINESS OPPORTUNITIES• SUPPORT THE UNIVERSITY IN FILLING ESSENTIAL TECHNOLOGY TRANSFER

SHORTCOMINGS

STEP 3. POSSIBILITY OF UTILIZING EXPERIENCED OVERSEAS PROFESSIONALS

….utilizing “untapped assets” for Infrastructure Business OR TRAINING OF PERSONNEL

Whereas overseas contractors will bring their own experts, developing quality local contracting also requires participation of actual working professionals in upgrading skills locally. These can be anyone from simply operators of various Construction machinery to Body shop mechanics and spray painting experts who develop specialized automobile repair centres at par with cities like Addis Ababa or even the more developed overseas cities in Gulf countries & India.

Such experts will come at high salaries, so the Polytechnics themselves can utilize their well/better equipped workshops to take ‘jobbing work’ under supervision of such experts for immediate revenue boost. Along with better tooling and training methodology, “thamari” are potential assets for more direct employment in hi-tech areas, even as ‘astamari’ are carrying local enterprise and Polytechnic reputation forward!!

PENTACLE can support Bahir Dar University & Polytechnic to design a mechanism for identifying and employing such experts on model simiar to Ethiopian Maritime Training Institute (EMTI) at Bahir Dar.

PENTACLE also proposes utilizing ex-Maritime Engineering and/or Navy/Military ex-professional and technicians for Construction Business Enterprise and training; and can design a program as such

Collaborating keHINDgar !!

STEP 3a. POSSIBILITY OF UTILIZING EXPERIENCED MARINE PROFESSIONAL

….utilizing “untapped assets” for Infrastructure Business OR TRAINING OF PERSONNEL

The ONLY ENGINEERS with high degree of Engineering skills PLUS unique “Hands-On” expertise

Ability to adapt to foreign conditions & crews

Ability to survive for long periods of time under challenging conditions in remote locations

Ability to motivate and supervise cross-nationality crews

Ability to operate and maintain port & construction handling equipment, cranes, electrical machinery and automation

Well-conversant with power generating machinery/plants.

Generally aware of Laws & Regulations in Logistics/Construction

Collaborating kegar Hind!!

About: “PENTACLE@Ethiopia” & our global affiliations

My company PENTACLE Energy & Infra Projects Pvt. Ltd. was set up at New Delhi, India as a Consultancy company in 2006 and incorporated as a Private limited company in 2009. We have undertaken both domestic and overseas assignments, mainly in areas of hydropower, thermal captive, business structuring /restructuring.

In 2012, myself as promoter had opportunity take assignment with Maritime Academy at Bahir Dar, Ethiopia and opportunities in the region including other African and middle east countries, under conditions of global economic environment have motivated me to shift operational base to Ethiopia.

We have worthy and reputed technologists, consultants, engineers and professionals, including local University /Polytechnic alumni/faculty with whom we have created long-lasting sustainable relationships to contribute to our future business endeavors in following focused areas:1. Construction Machinery, Infrastructure

Projects2. Human Resource, Training & Education

Advisory & Research services3. Consultancy : Business Expansion/new

business, JV/collaborations , Re-engineering / Reverse Engg.

4. Trading, supply & services of generating equipment & machinery, viz. Solar, electrical/electronic, IT / Communication (GPRS tracking,

Future Agenda / Business Plan: Part 1 (Education)

Ethiopian business climate is ripe for globalization and PENTACLE’s initial efforts have been devoted to developing close understanding of Business & Social environment in the country, emphasis Amhara region

The prevalent government policies for foreign entrepreneurs warrant that we create local Joint Ventures; hence deep understanding of cross-cultural dynamics and it’s potential to bring change in critical areas to make such alliances sustainable, trustful and Profitable to all stakeholders is seen as the main challenge

Much of our observations are based on random discussion & extensive interaction with students & faculty at University & Polytechnics at Bahir Dar, with focus on: Engineering Technology and Vocational/Specialized training in Maritime, Construction/Civil & SST.

These have been studied under purview and comparison from our experience from India’s journey to privatization & globalization since 1990s, of which the author has been a part as a business development professional & entrepreneur – WE WOULD LIKE TO TRANSLATE THE SAME TO BRINGING LOCAL THINK-TANKS TOGETHER FOR BRAINSTORMING & DISCUSSION possibly under ambit of local Chambers of Commerce and University specific bodies for planning and implementation.

In general, it is felt that the education system in Ethiopia, especially w.r.t. Polytechnics and Vocational training lacks significantly w.r.t. India and other developing countries; which could result in serious vacuum of EFFECTIVE LOCAL Human Resources, possible in immediate future as Ethiopia launches on their honorable PM’s vast vision of a Industrialized and self-sufficient Ethiopia, unless the prevailing systems bring far greater seriousness in generating discipline and upgrading of their educational tools, systems and policies for overseas expertise, joint ventures and collaborations to put such programs on FAST TRACK! With weak alumni coming from Polytechnics of ITI and Vocational Training, Engineering & management students tend to get reduced to menial trades & tasks, which causes frustration & de-motivation…..most importantly lack of leadership or wastage of talent.

Future Agenda / Business Plan: Part 2 (Services)

With Education under Part 1 as base, PENTACLE would like to open up a Consulting & Advisory office at Bahir Dar and/or Addis Ababa (with due support and recognition of Universities and Polytechnics) to facilitate such forums for debates and discussion as part of our Research and Event Management services where we can partner with local bodies/ Event Managers and/or Chambers of Commerce.

To bring more Private Sector interest by way of Collaborations, JVs, etc. both from local and overseas to invest in areas of professional and specialized education and training in areas of Construction Technology and its related/subsets of Construction Heavy Machinery, Automobiles, Power, Renewable Energy, Hydropower and Water/Agriculture/Irrigation.

Taking up consulting engineering and/or contracting/EPC assignments in collaboration with local and overseas companies, where we can directly hire, groom and re-train local manpower at par with international aspirations, where necessary and imparting higher specialized training to deserving professionals for higher and leadership roles.

Bringing new and advanced technology in identified areas and facilitating domestic / overseas funding including micro-finance options for small enterprises as consultants for structuring of new businesses and restructuring/expansion of existing businesses.

THANK YOU, AMASIGNALEHU!!!

DO WE KNOW EXPERTISE LIES IN UNKNOWN PLACES? If you cannot SPOT it, you cannot create it!!!

We strongly suggest herewith a TALENT SPOTTING uprising within Universities and Polytechnics at Bahir Dar…..many mini Ethiopian Idol talent hunts in technical skills and also extra and co-curricular activities like music, dance, sports,

fashion and traditional art forms too. This will uplift the morale of students and help them focus on studies and

University activities too!!! Ibakih…look into this!!