BEE at the National Ports Authority of South Africa
PresenterSiyabonga Gama, CEOPresenterSiyabonga Gama, CEO
Who Is The NPA?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 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 NPAThe Business Of NPALandlord Services
Property management
Planning and development
Safety, Health and Environment
Engineering
Security Services
Maritime Services
Marine Services
Ship Repair Services
Lighthouse Services
Dredging Services
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
Serving The South African Economy
The efficient running of ports is important to the well-being 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.
The efficient running of ports is important to the well-being 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.
Deepwater portsDeepwater portsRichards 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
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 PortsHub PortsDurban
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
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
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
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 portsMulti-purpose portsPort Elizabeth Major fruit terminal Manganese ore is next biggest export commodity Entry point for the motor car industry while also an exit for fully-
built 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
Port Elizabeth Major fruit terminal Manganese ore is next biggest export commodity Entry point for the motor car industry while also an exit for fully-
built 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 2002/2003Total Cargo Handled Per Port 2002/2003
21%
3%
1%
2%
1% 19%
53%
Richards Bay Saldanha Bay Cape TownEast London Port Elizabeth Mossel BayDurban
Nature of Cargo Handled - 2002/2003Nature of Cargo Handled - 2002/2003
1%3%
74%
22%
Imports
Exports
Coastwise
Transhipments
Port development upgradePort 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 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 projectsPort development projectsPort 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 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 updatePort 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
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 updatePort development updatePort 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
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 DirectionStrategic DirectionNPA’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
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 StrategyBEE Strategy
To accelerate procurement from black-owned and empowered
enterprises to create new enterprises with the objective of
growing existing emerging entrepreneurs to produce value-
added goods and services for the industry and increase employment
To accelerate procurement from black-owned and empowered
enterprises to create new enterprises with the objective of
growing existing emerging entrepreneurs to produce value-
added goods and services for the industry and increase employment
Primary Policy ObjectivesPrimary Policy ObjectivesFacilitate 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
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 PolicyCurrent Mechanisms Supporting PolicySet 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
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 CriteriaSupplier 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
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 OpportunitiesKey BEE OpportunitiesConstruction 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
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..)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
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 AchievementPast Achievement
Total Discretionary Expenditure
BEE spend % BEE spend
R1,209,660,220,91 R479,730,619,28 40%
2002/3 BEE EXPENDITURE
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 NPAChallenges Facing NPAConstruction 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
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 SectorAssisting 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
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 ForwardWay ForwardCommunication 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
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 ObjectiveInitiatives 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
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