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INSIGHT South African intellectual property offices seeking to stimulate innovation Page 27
FEATURES Nampo Preview Page 34 Cement & Concrete Page 52 Nuclear Energy Page 68

NEWS FOCUS High-level support for innovative agrosolar greenhouse concept Page 22

AUTONOMOUS
AMBITION
Least-cost electricity transition being played
out at CSIRs Pretoria campus
Page 18
Picture by Dylan Slater

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 Cover Story & Highlights 18 Least-cost electricity transition being
played out at CSIRs Pretoria campus

News & Insight

8 End to Eskom stalemate could unlock enormous 24 Daimler testing the effects of augmented lighting on
backlog of wind projects in 2017 health of truckers
8 M&R a co-applicant with GE in dispute with Eskom 24 Online bidding platform aims to disrupt truck
over Duvha contract transport industry
9 LNG-focused energy firm pursuing diversified 25 Chief selected for Imperials newest business venture
African investment pipeline
26 BMWs Rosslyn plant to start producing X3 early next
10 BlueNova launches production facility as lithium year
battery bug bites in South Africa
27 South African intellectual property offices seeking to
10 SA accounts for 59% of Africas outbound M&A stimulate innovation
activity study
28 Court ruling means new approach needed for SAs
12 LPG inquiry proposes far-reaching, yet nonbinding, nuclear programme
market overhaul
29 Kubayi should seize clean slate nuclear opportunity
13 Sacu makes formal request to initiate post-Brexit trade
talks with UK 78 Global law firm set to extend learnership programme
to Joburg
13 Icasa enters into a technical agreement with
Mozambique regulator 78 AfDB welcomes Zambia, Ghana to bond index

14 Canada contributes R25m to help revitalise inner-city 78 TNPA appoints new port managers
communities 79 Eastern Cape sets sights on becoming Africas leading
16 Mombasa-to-Nairobi rail line set for commissioning fuel bunkering centre

16 Renewed interest in delayed Uganda oil refinery plan 79 AI systems seen as key to managing contact centre as
volumes rise
20 Steel demand seen growing again as recession risks
recede 83 Banks warned of ATMs being infected remotely by
malware
20 Global steel production reaches 410Mt in Q1
83 South African telcos broadening ICT services
20 Four bidders shortlisted for Blantyre water project portfolios
21 CIG uncertain about local outlook, but sees growth in 84 Political decisions, downgrades push policy
rest of Africa uncertainty into negative territory
23 Ethiopia says it will continue to support cement 85 Huaweis SA OpenLab to focus on safe city, smart grid
investments solutions

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22 High-level support for 22 Maluti-A-Phofung 27 Construction of M1
innovative agrosolar Special Economic Zone Oxford, Federation
greenhouse concept officially launched bridges enters last leg

Real Economy Advertisers

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Nampo provides ideal platform 55 BBF Group 57 Morpho South Africa
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38 ExxonMobil
74 Tech Track Kelvin Kemm IFC Sasfin
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75 Electrically Speaking Terry Mackenzie-Hoy 58 Taishan Fibreglass SA
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Courses
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30 Projects in Progress 25 Gedore
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33 Company Profile 32 Graven Designs
23 University of Pretoria
51 Company Profile 3 Hypenica (Totally
Concrete) 9 VescoPlastics
66 Company Profile
67 Company Profile 15 IFAT Africa 2017 51 VescoPlastics
76 People in Camera 33 Incahoots 56 Weishaupt
80 Whats On? 63 Industrial Nozzles 67 Welding Alloys
82 Enquiry Service & Systems 71 WorleyParsons
86 Business Leader 54 Industry Q OHS 45 Zest WEG Group

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PERSPECTIVES

Photograph: Simon Dawson for Bloomberg

IF ITS NOT MINED . . . The well-worn phrase, if its not mined, its farmed, comes to mind when analysing the
business model of commodities producer and trader Glencore. While the Swiss group, with strong South African ties,
is best known for its minerals and fuels operations, Glencore Agriculture is making its presence felt increasingly in the
trading of food. Pictured is an employee walking past a grain silo containing products for Glencore at the European
Bulk Services terminal at the Port of Rotterdam, in the Netherlands. Bloomberg reports that the standalone enterprise
currently generates more revenue from owning fixed assets in strategic locations than from trading.

6 ENGINEERING NEWS | May 1218, 2017 LO

 EDITORIAL INSIGHT
STATE OF THE NATION

FACTSINFIGURES Toxic combination

4.9 1.53 TWO CORE ATTRIBUTES OF SOUTH AFRICA during apartheid
were State illegitimacy and political and social intolerance.
The amount in billion To recall just how illegitimate the apartheid government was,
The amount in billion
rands that South Africas it is worth revisiting the December 1973 resolution of the United
tonnes to which global
Department of Trade and Nations General Assembly, which reaffirmed that the practice of
steel demand will increase
apartheid constitutes a crime against humanity. The resolution
Industry has approved in this year, which, with a
declared that the South African regime had no right to represent
incentives for the clothing further 0.9% increase in the people of South Africa and that the liberation movements recog-
and textiles sector in 2017. 2018, will reach 1.55-billion nised by the Organisation of African Unity were the authentic
More than R3.1-billion in tonnes, according to the representatives of the overwhelming majority of the South African
incentives was disbursed World Steel Associations people. It also called for other States to impose military, trade,
in the previous financial latest short-range outlook sporting and cultural boycotts prohibitions that helped jolt some
year. published in May. white South Africans to the realisation that they were not living in
SHEILA BARRADAS | CREAMER MEDIA RESEARCH COORDINATOR & SENIOR DEPUTY EDITOR
a normal society.
Likewise, intolerance was not only a societal default, but the
legislated reality. Grand apartheid was intolerant of racial integration
and the provision of equal educational, economic and social oppor-
tunities for black South Africans. Petty apartheid, meanwhile, was
intolerant even of the most basic sharing of public facilities, such
as toilets, restaurants, trains, buses, swimming pools and beaches.
Formal and informal intolerance was all-pervasive, with political
parties banned, newspapers and radio stations censored, or self-
censored, and social segregation enforced.
The toxic combination of illegitimacy and intolerance meant that
even a false sense of societal equilibrium could only be sustained
through systematic and violent repression.
The democratic settlement of 1994 was meant to purify the
country of this poisonous mixture. Sadly, however, there are
worrying signs of re-emergence, notwithstanding the fact that
POISONOUS PROCUREMENT: In their April 26 judgment, justices ideas still flow freely, protests are commonplace and elections
Lee Bozalek and Elizabeth Baartman said it would be inappropriate are considered to be free and fair.
for the court to prescribe to the Minister the form of any procurement
process to be adopted. However, their ruling makes it plain that
The issue is that political legitimacy stands on two legs: electoral
processes followed until now have been neither rational nor lawful. support and the performance of the executive. A combination of
Making the process less toxic will require full transparency and corruption, incompetence and factionalism has seen the President
accountability. However, it will also hinge on whether nuclear Jacob Zuma administration losing balance on the second leg.
advocates are able to justify economically and technically the Government is, therefore, facing a legitimacy crisis. Besides the
technologys inclusion in the countrys future electricity mix.
protests, heckling and infighting, the most obvious outward sign of
this legitimacy shortfall is the continual leaning on the courts to
SPEAKOUT settle policy disputes.
With this fall in legitimacy, there has ben a commensurate rise
The credit story of South Africa has been deteriorating. in defensive rhetoric and political intolerance. And while South
Associate director and lead analyst for South Africa at Africans have arguably become somewhat numb to the vitriolic
attacks in the National Assembly, these are now spreading to
S&P Global Ratings Garner Rusike, commenting on South
municipal chambers and even Parliamentary portfolio committees.
Africas three credit rating downgrades over the past four It may make for titillating television viewing, but indulging this
or five years sort of behaviour carries serious long-term risks, including the
risk of political violence.
The only challenge that Eskom will have to contend with will Dealing with this toxic com-
be the higher cost of debt. bination of falling legitimacy
and rising intolerance is going
State-owned electricity utility Eskom CFO Anoj Singh, to require far greater account-
on credit ratings agency S&P Global Ratings decision to ability from government leaders.
downgrade the utilitys corporate credit rating to junk status But it will also require concerted
efforts to move the conversation
well beyond the current divisive
We will answer the question at the right time . . . once all of
rhetoric.
the work has been done.
Finance Minister Malusi Gigaba, reiterating his stance on
the countrys proposed New Nuclear Build Programme
SHEILA BARRADAS | CREAMER MEDIA RESEARCH COORDINATOR & SENIOR DEPUTY EDITOR

LO ENGINEERING NEWS | May 1218, 2017 7

NEWS&INSIGHT
WIND ENERGY
Rapid Recovery?
End to Eskom stalemate could unlock enormous backlog
of wind projects in 2017
TERENCE CREAMER | CREAMER MEDIA EDITOR
T
he Global Wind Energy Council
(GWEC) expects a recovery in the
deployment of wind projects in South
Africa, following a hiatus in 2016 brought
about by Eskoms refusal to enter into power
purchase agreements (PPAs) for renewable-
energy projects procured in 2015.
In its Global Wind Report: Annual Market
Update 2016, which was released in India
recently, the GWEC forecasts that South
Africa, Kenya and Morocco will also lead a
recovery in the African market, after a rela-
tively quiet 2016 across the continent.
The report shows that 54 GW of new
wind capacity was added in 2016 a perfor-
mance that was below expectation, owing to
a slowdown in deployments in China to 23
GW and smaller-than-expected markets in
Brazil, Mexico, Canada and Africa, notably
South Africa.
South Africa added only 418 MW of wind
capacity in 2016, raising its overall installed
base to 1 471 MW. Nevertheless, South Africa
remained the only country in Africa, and
among a group of only 29 countries globally,
to have a wind installed base of more than
1 000 MW.
Secretary-general Steve Sawyer and chair-
person Morten Dyrholm wrote that they
anticipated solid prospects for wind in 2017,
following slumps in key emerging markets
CONTRACT DISPUTE
M&R a co-applicant
with GE in dispute
with Eskom over
Duvha contract
TERENCE CREAMER
CREAMER MEDIA EDITOR
MURRAY & ROBERTS (M&R) has confirmed
that it is a co-applicant with GE in a court bid
to prevent Eskom from implementing a con-
tract with Dongfang Electric Corporation for
the Duvha Unit 3 boiler recovery project.
The 600 MW boiler was damaged cata-
strophically in March 2014 as a result of
overpressurisation of the boiler furnace, which
triggered an explosion that resulted in the
8 ENGINEERING NEWS | May 1218, 2017
in 2016 and despite some uncertainty in the
market owing to the US election results in
November. Cumulative wind capacity grew
by 12.6% to 486.8 GW in 2016 and the GWEC
still expects the installed base to expand to
800 GW by 2021.
In South Africa, it seems that the stale-
mate is about to break with Eskom over the
PPAs the State-owned utility has refused to
sign despite the government-run tender results
and instructions to do so.
If it does, this will unleash an enormous
backlog of projects, with more to come in
the next bidding rounds. South Africas new
Integrated Resource Plan (IRP), if it becomes
policy, will facilitate this key African mar-
kets living up to its potential, the report
states.
In February, President Jacob Zuma con-
firmed in his State of the Nation address that
all outstanding PPAs would be signed and,
following the announcement, former Energy
Minister Tina Joemat-Pettersson set April
11 as the deadline for the signing of the
contracts.
However, following the March 31 Cabinet
reshuff le, which saw Joemat-Pettersson
replaced by Mmamoloko Kubayi, the new
Minister requested a postponement to enable
her to consult with stakeholders, including
Public Enterprises Minister Lynne Brown
entire unit being shut down.
Business Day reported recently that GE had
approached the High Court in Johannesburg to
interdict Eskom from implementing Dongfangs
c ontrac t until it had been reviewed and
adjudicated again.
In an af f idavit deposed by GE head of
sub-Saharan Africa George Njenga, the US
multinational alleged that Eskom had violated
the terms of its own request for proposals
(RFP), which outlined a two-stage adjudication
involving a desktop evaluation to arrive at the
top two suppliers, followed by direct nego-
tiations with the suppliers for final selection.
Njenga said GE and M&R were the only short-
listed suppliers when final offers were submit-
ted on March 3 and Dongfang was not on the
shortlist. Eskom, nevertheless, awarded the
tender unlawfully to the Chinese firm.
M&R also confirmed to Engineering News
BREAKING THE IMPASSE
In February, President Zuma confirmed in his
State of the Nation address that all outstanding
PPAs would be signed
and new Finance Minister Malusi Gigaba.
In a recent briefing, Gigaba reiterated that
the policy of integrating independent power
producers into the countrys electricity
network remained unchanged and said there
should be no uncertainty as to our commit-
ment to the energy mix and the renewable-
energy programme.
Twelve of the 37 outstanding projects
procured under the Renewable Energy
Independent Power Producer Procurement
Programme (REIPPPP) are wind projects,
while the draft IRP Base Case published
last year calls for the addition of more than
37 000 MW of wind capacity by 2050.
The IRP is still in the process of being
To page 14
that it was applying to have Dongfang inter-
dicted from taking any steps towards the exe-
cution of any contract.
Finally, we are asking that Eskom be called
upon to show cause why the decision was made
to award the tender to Dongfang, investor and
media executive Ed Jardim said.
In its affidavit, GE also alleges that Eskoms
departure from the requirements of the RFP
resulted in an award that was more expensive
to the utility.
Business Day reports that the GE bid was
for R3-billion, comprising a 25% fixed-price
element and a 75% variable component.
M&Rs bid was reportedly for R3.3-billion, with
10% fixed. Dongfangs bid price was fixed at
R4-billion, which Eskom contends carries a
lower risk.
The State-owned utility is opposing the appli-
cation.
AN
NEWS&INSIGHT
ENERGY
African Ambition
LNG-focused energy firm pursuing diversified African
investment pipeline
TERENCE CREAMER | CREAMER MEDIA EDITOR
B
lack-empowered energy company
African Energy Partners (AEP),
which plans to list as a special-pur-
pose acquisition company on the JSEs AltX
board on June 1 to raise up to R500-million to
pursue liquefied natural gas (LNG) prospects
in Africa, reports that its investment pipe-
line includes a diverse range of prospects
in South Africa and the rest of the continent.
CEO Edwin Kikonyogo tells Engineering
News that AEP will participate across this
entire infrastructure value chain, with the
opportunities falling into three categories:
operating natural gas plants in South Africa
and elsewhere in Africa; brownfield plants
available for conversion from heavy-fuel oil
or diesel to LNG or natural gas; and green-
field LNG-to-power developments.
There are several LNG-to-power oppor-
tunities in Africa that AEP is targeting to
participate in, including South Africas gas-
to-power programme when it gets under way,
Kikonyogo reports.
I n 2016, t he D epa r t ment of Energ y
released a project memorandum for a pro-
posed Liquefied Natural Gas Independent
Power Producer Procurement Programme,
in which it indicated that Richards Bay, in
KwaZulu-Natal, and Coega, in the Eastern
Cape, had been selected as the initial sites for
the programme.
At the time, it was anticipated that the
commercial process could get under way in
either late 2016 or early 2017. However, fol-
lowing protracted delays to the conclusion of
contracts between renewable-energy genera-
tors and Eskom, as well as the stabilisation of
South Africas electricity supply position, the
procurement programme has been delayed.
There is strong impetus for LNG in Africa
that is independent of any South African initia-
tive, Kikonyogo says, noting that LNG was
commercialised in Africa, with the worlds
first commercial natural gas liquefaction plant
opening in Algeria in the 1960s.
Africa has a long history in LNG, but vir-
tually all of Africas LNG production has thus
far been exported. This export-only landscape
is changing fast . . . and the time for African
LNG import investment has arrived and is in
fact long overdue.
He says AEPs investment pipeline is diver-
sified with regard to regional footprint, invest-
ment size and energy offtaker profiles.
AN
EDWIN KIKONYOGO
Africa has a long history in liquefied natural gas
Identified investments range in size from
8 MW cogeneration plants for specific indus-
trial offtakers and LNG conversion opportuni-
ties of 250 MW, inclusive of LNG importation
and regasification infrastructure and LNG sup-
ply, to 400 MW-plus of greenfield LNG-to-
power, covering combined-cycle gas turbine
plants, LNG importation and regasification
and fuel supply.
AEPs first viable acquisition must take
place within two years of listing and the
companys intention is to acquire mostly
controlling stakes in a portfolio of opera-
tions. Our target operations offer a mix of
medium- and long-term off-take agreements
and a contracted cost base, which makes for
good long-term earnings visibility.
The founding directors will contribute at
least 5% of the capital raised and, besides
Kikonyogo, the company will be led by COO
Nkosi Gugushe and CFO Kevin Simons.
Its board includes some well-known energy
personalities, such as David Wright (chair-
person) and Erica Johnson, and also com-
prises Silvanus David, Carla Cloete, Meriam
Kekana and Sifiso Sibiya.
AEP is undertaking an investor roadshow
and the offer will take the form of a private
placement, with only a small retail com-
ponent, which will be allocated at the boards
discretion.
The cash raised will be held in an escrow
account and will only be available for deploy-
ment following shareholder approval. AEP is
anticipating making its first acquisition within
the first year.
ENGINEERING NEWS COUPON ON PAGE 82 E450924
ENGINEERING NEWS | May 1218, 2017 9
NEWS&INSIGHT
MANUFACTURING temperatures, and they need to be warmed up

Efficient & Versatile

with a blanket that we sell.
Verster sees tremendous potential in using
LiFeYPO4 batteries in rural areas. Its small
13 kg battery is its most popular one, with a
BlueNova launches production facility as lithium battery bug cycle life of 7 000 cycles. Verster says the bat-
tery has a handle and is portable and can be
bites in South Africa carried by children.
We see it as giving power to the people in
KIM CLOETE | CREAMER MEDIA CORRESPONDENT the real sense. People, who have traditionally

E
nergy storage solutions company
BlueNova has launched a new produc-
tion facility in Somerset West, near
Cape Town, to keep up with rising demand for
lithium-iron-yttrium-phosphate (LiFeYPO4)
batteries.
Lithium-ion batteries, of which LiFeYPO4
batteries are a type, are seen as an excellent
alternative to ageing lead-acid batteries, as they
are more environment friendly and have up to
six times the storage capacity. They are also
considered to be safer than lead-acid batteries.
Lead-acid batteries will always be there as
a standby. But lithium-iron batteries are fan-
tastic [in] the way they absorb energy, says
BlueNova CEO James Verster.
BlueNova has formed a partnership with the
JSE-listed Reutech Group and is developing
market opportunities in the residential, com-
mercial and industrial sectors.
Verster sees the introduction of LiFeYPO4
batteries as transformative, as the technology
has grown exponentially over the past 23 years.
An LiFeYPO4 battery is a member of a fam-
ily of rechargeable battery types in which lit-
hium ions move from the negative electrode to
the positive electrode. They are extremely effi-
cient and versatile and can be used in very high
temperatures, Verster tells Engineering News.
As such, they are well suited to the African
climate. The battery life of lead-acid batteries
tends to diminish dramatically at high tem-
peratures. LiFeYPO4 batteries are designed
to withstand the heat.
We can offer a battery that will operate in
a 35 C to 40 C environment and still give
you 10 to 15 years of battery life.
Conversely, LiFeYPO 4 batteries do not
operate quite as well in very cold tempera-
tures and need to be warmed up before use.
The Achilles heel of lithium-iron bat-
teries is that they lose capacity at very cold
used lead-acid batteries, will be able to power
far more than simply a television or a light.
We see a strong correlation between quality of
life and energy consumption and we believe
this will make a difference.
Verster says BlueNova is active mainly in
the residential and light industry sectors but
plans to talk to serious players in the heavy
off-grid market this year. It sees great poten-
tial for its battery range in big game lodges,
including those in the Kruger National Park.
We have a couple of projects going this
year in the 100 kWh to 200 kWh category.
BlueNova buys its lithium cells from China,
but its control electronics, displays and soft-
ware have been developed by its engineers in
South Africa. It currently produces its bat-
tery for South African use, but also exports to
Zambia, Namibia, Botswana and Mozambique.
The company intends to register one or two
projects with universities that will do further
research on efficiency.

ECONOMY leading investments. Domestic

SA accounts for
59% of Africas
outbound M&A
activity study
MEGAN VAN WYNGAARDT
CREAMER MEDIA SENIOR
CONTRIBUTING EDITOR ONLINE
THE value of announced
merger and acquisition (M&A)
transactions with any sub-
Saharan African involvement
reached $10.1-billion during the
first quarter of 2017, the highest
opening-quarter total in six
years, research firm Thomson
Reuters Africa has found.
In its intelligence analysis of
sub-Saharan African deals for
the first quarter, the company
highlights that inbound
M&A activity reached a seven-
year high of $6.4-billion,
more than five times the value
recorded in the first three
months of last year, with the
US, China and Switzerland
and inter-sub-Saharan African
M&A totalled $1.5-billion,
up 130% year-on-year, while
outbound M&A declined 40%
to $794.6-million.
South Africas overseas
acquisitions accounted for
59% of sub-Saharan African
outbound M&A activity, while
companies headquartered in
the Seychelles and Mauritius
accounted for 23% and 18% of
sub-Saharan African outbound
M&A activity respectively.
The biggest deal clinched
during the quarter was US
oil and gas company Exxon
Mobil buying a 25% stake
of a Mozambique liquefied
natural gas project from Italys
Eni for $2.8-billion. The deal
helped boost the value of deals
in the energy and power
sector to $4.2-billion. Bank of
America Merrill Lynch topped
the first-quarter Any Sub-
Saharan African Involvement
Announced M&A Financial
Adviser League Table with a
28% share of the market.

10 ENGINEERING NEWS | May 1218, 2017 AN

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NEWS&INSIGHT
LIQUID PETROLEUM GAS also notes that the pricing methodology has

Supply to Distribution
not been reviewed, despite a DoE commitment,
made in 2012, to conduct such a review.
Other key recommendations made in the
report include:
LPG inquiry proposes far-reaching, yet nonbinding, market overhaul capping long-term supply agreements to a
maximum of ten years;
ensuring that smaller wholesalers receive
TERENCE CREAMER | CREAMER MEDIA DEPUTY EDITOR preferential access to 10% of LPG volumes

S
for contracts with a minimum duration of
outh A fr icas Competition two years;
Commission has made fa r- structuring bulk-supply contracts in a
reach i ng, yet nonbi nd i ng, way that separates LPG supply from
recom mendations for dealing with equipment supply to ensure that end-
prevailing market distortions in the users own the installed equipment
Picture by Senior Chief Photographer Duane Daws

domestic liquid petroleum gas (LPG) and are, thus, able to switch LPG
sector following its first-ever market suppliers;
inquiry, which took nearly three years removing restrictions on cylinder
to complete. exchanges by making it possible
The report identifies serious policy for any wholesaler to enter bilateral
and regulatory misalignments, which exchange agreements; and
are crimping both the production having deposit fees for cylinders set
of LPG by existing refineries and by Nersa and linked to the size and
investment into new importation TEMBINKOSI BONAKELE AND EBRAHIM PATEL cost of each cylinder.
infrastructure. It also points to market LPG industry urged by Minister to act on nonbinding market The commission would also con-
inquiry findings
structures and entrenched behaviours tinue its ongoing cartel investigation
that are raising the costs to industrial relating to the current setting of deposit
and resident consumers and limiting entry into Easigas, Oryx Energies and TotalGaz), which fees by the industry.
the market by new participants. account for more than 90% of the market. It was not immediately clear how the refin-
Receiving the 206-page report in Pretoria, In addition, some of these sales agreements eries and the established wholesalers would
Economic Development Minister Ebrahim are associated with 20-year-plus evergreen respond to the report, which calls on the
Patel indicated that the recommendations contracts, which are often accompanied by industry to implement some of the recom-
would be tabled in the National Assembly and discounts of up to 10% against the regulated mendations as early as October.
would be used to drive an inclusive-growth maximum refinery gate price (MRGP). However, one small wholesaler expressed
agenda in the LPG industry, as well as the The price paid by end consumers, known disappointment with the lack of ambition
liquid-fuel sector more broadly. as the maximum retail price (MRP), is also shown by the commission. In fact, Wasaa
Competition Commission commissioner regulated. However, there is evidence of Gasses CEO Nokwanele Qonde said the
Tembinkosi Bonakele added that lessons collusion in the setting of deposit fees for gas 10% target for smaller wholesalers, together
learned from the inquiry would also be applied cylinders, while prevailing cylinder-exchange with two-year supply agreements, would be
to the two other market inquiries currently practices act as a barrier to entry for smaller inadequate to facilitate the opening up of the
under way in the private healthcare and wholesalers. In addition, the fact that whole- industry to new entrants, particularly if the
grocery retail industries. salers bundle equipment ownership with gas long-term supply agreements with the majors,
Patel argued that the report should not be supply when concluding bulk supply contracts together with the discounts, persisted.
allowed to gather dust and urged both the has made switching gas suppliers nearly However, Bonakele stressed that the recom-
public and private organisations named in the impossible. mendations regarding small wholesalers were
recommendations to take appropriate action To address the constraints to LPG supply, seen as minimum thresholds and were
to improve the performance of the LPG sector t he com m ission re com mend s g reat er reflective of the highly concentrated nature
rather than focus on the nonbinding nature of alignment between the National Energy of the sector.
the remedies. Regulator of South Africa (Nersa) and Should the supply constraints outlined in the
The reports recommendations, which Transnet National Ports Authority in both report be eased, he saw scope for far higher
were presented by Dr Liberty Mncube and the content and timeframes associated with levels of penetration by new entrants.
Thembalethu Sithebe, are also accompanied the licensing of new import facilities. The In fact, the commission notes that a number
by a voluntary implementation plan and current misalignment is viewed as a significant of licences have already been granted for
associated timeframes. impediment to investment and has also made the development of import facilities and
The commission concludes that the industry the process of licensing protected. recommends that the regulatory frameworks
is highly concentrated, with 80% of yearly It also recommends that Nersa, rather than be reviewed to encourage the construction
supply of 350 000 t arising from the countrys the Department of Energy (DoE), be respon- of LPG import and storage capacity at the
five refineries Enref, Chevref, Natref, sible for wholesale licensing and that the countrys ports.
PetroSA and Sapref and the balance from energy regulator also be responsible for the It also recommends that the DoE undertake
imports. Further imports are constrained by monitoring and enforcement of the regulated a market study on how price deregulation could
inadequate pipeline and storage infrastructure, prices. be achieved in the LPG market over time.
which is, in turn, undermined by policy, The commission notes that the DoE, which However, the commission stresses that,
regulatory and pricing dynamics. is currently responsible for monitoring and in light of prevailing supply bottlenecks,
The five refineries have long-term supply enforcement on the MRGP and the MRP, lacks immediate deregulation could result in a
agreements with four large wholesalers (Afrox, the inspectorate capacity to fulfil the role. It price spike.

12 ENGINEERING NEWS | May 1218, 2017 RA

NEWS&INSIGHT
TRADE RELATIONS TELECOMS

Proactive Step Icasa enters into a

technical agreement with
Sacu makes formal request to initiate post-Brexit trade talks with UK Mozambique regulator
TERENCE CREAMER | CREAMER MEDIA EDITOR ANINE KILIAN

S
CREAMER MEDIA
outh Africas Trade and Industr y CONTRIBUTING EDITOR ONLINE
Minister Dr Rob Davies reports that THE Independent Communications Authority
the Southern African Customs Union of South Africa (Icasa) has signed an agree-

Picture by Senior Chief Photographer Duane Daws

(Sacu) has written a letter to the UK govern- ment of cooperation and coordination with the
ment formally requesting the initiation of talks communications authority of Mozambique,
on the terms of the bilateral trade relationship Autoridade Reguladora Das Communicaes,
that will be put in place when Britain exits the in respect of spectrum management for tele-
European Union (EU) in 2019. communications and broadcasting services.
On March29, British Prime Minister The agreement will see the establishment of
Theresa May formally triggered Article50, a technical committee to deal with matters of
which affords an EU member wishing to leave common interest between the two regulators
the union two years to negotiate exit terms. on radio frequency coordination.
ROB DAVIES
May subsequently also called a snap June8 For South Africa, which has tariff-rate quotas on It is our commitment as regulators to make
general election, which she claimed was nec- products such as wine, sugar and fruit entering expertise, infrastructure and equipment avail-
essary to provide the country with the stable the EU, a negotiation would be required able to assist each other on regulatory matters,
leadership required to see the UK through its including radio frequency spectrum investi-
Brexit negotiations. they will continue to have duty-free, quota-free gations, possible cross-border spillovers and
Davies told members of the British Chamber access into the UK, Davies said. of course, coordination of our services, Icasa
of Business in Southern Africa this week that But, for South Africa, which has tariff-rate acting chairperson Rubben Mohlaloga said
the Sacu letter, dated April7, followed discus- quotas on products such as wine, sugar and in a statement.
sions he had held with the UKs Minister of fruit entering the EU, a negotiation would be The agreement is the culmination of the
State for Trade Policy, Lord Mark Price, at required. memorandum of agreement entered into by
the inaugural Commonwealth Trade Ministers We cant just simply divide the quota by the two governments in June 2015.
Meeting, which took place in London on 28, Davies averred, noting that 40% of South
March9 and 10. Africas wine exports to the EU were destined
Davies and Price agreed that the discus- for the UK market. So we are going to have
sions between the UK and Sacu should be to establish a quota in a discussion with the
S A
uge Guys
done quickly and that the recently ratified UK and we are probably also going to have
GAUGE
The Ga
Economic Partnership Agreement (EPA) with
the EU should provide the framework for the
to discuss some geographical indications.
However, negotiations should not be overly PRESSURE
immediate period following Britains with-
drawal from the EU. Any possible improve-
complicated and Sacu, therefore, intended to
have them wrapped up well ahead of 2019 so GAUGE MANUFACTURERS
ments to the agreement could form part of a as to ensure that there was no disruption in
medium-term bilateral negotiation agenda. the trade relationship, which both sides rec-
T he EPA, wh ich took more tha n ten ognised as being important.
years to negotiate, includes Sacu members Yearly trade between South Africa and the
Botswana, Namibia, Lesotho, South Africa UK is approaching 9-billion, with the trade
and Swaziland, as well as non-Sacu member balance in South Africas favour. The UK is
Mozambique. The agreement has improved also South Africas second-largest trading
South Africas access to the EU on certain partner within the EU, after Germany, and
agricultural products in return for recogni- ahead of France.
tion of geographical indications on a range Ahead of her departure at the end of March,
of European foodstuffs, wines and spirits. former British High Commissioner to South
The deal was signed in Kasane, Botswana, Africa Dame Judith Macgregor promised that
in June 2016, and ratified by all participants there would be no cliff edge in the trade and
in November last year. investment relationship between the UK and
Davies said Sacu was eager for negotiations South Africa as a result of Brexit.
to begin with the UK, which would have seve- She added that there was even potential to Pressure Gauges
ral other more pressing negotiating priorities strengthen the relationship both bilaterally and Diaphragm Seals
Transmitters
in the run-up to Brexit. However, owing to the through a revitalised Commonwealth, where
Thermometers
June8 election, Davies said talks were unlikely a target had been set for increasing intra- Pressure Testing Kits
to start until the end of June, at the earliest. Commonwealth trade to $2.75-trillion by 2030. SANAS ISO 17025 Accredited
For most of the countries that are part of Macgregor has since been replaced by Nigel
Branches in Joburg & Durban
Sacu, we think that there is probably very Casey, who was present in Johannesburg for National Sales: 0860 007 911
little to talk about, because they have duty-free, Davies address to the British Chamber of International Sales: +27 031 579 2216
quota-free access into the EU. Presumably, Business in Southern Africa. sales@sagauge.com www.sagauge.com

EG ENGINEERING NEWS | May 1218, 2017 13

NEWS&INSIGHT
HOUSING DEVELOPMENT
Equal Spaces
Canada contributes R25m to help revitalise inner-city communities
ANINE KILIAN | CREAMER MEDIA CONTRIBUTING EDITOR ONLINE
C
anadas Deputy Minister of Global
Affairs, Ian Shugart, announced a
contribution of R25-million last month
to the Equal Spaces: Social Housing to End
Spatial Apartheid project, in South Africa.
The project will be managed by Canadian
nongovernmental organisation Rooftops
Canada and will support four metropolitan
areas, including Johannesburg, Cape Town,
eThekwini and Ekurhuleni.
The Canadian governments support for
this project will help to revitalise inner-city
urban communities through the creation of
social housing developments that are well
managed, centrally located, affordable and
secure, he said at an event hosted by the
Canadian embassy in Johannesburg.
He noted that the project would support
urban regeneration initiatives and provide
technical assistance for social housing insti-
tutions across the country.
Rooftops Canada will work directly with
the South African Department of Human
Settlements, the Social Housing Regulatory
Authority and the National Association of
Social Housing Organisations, as well as vari-
ous stakeholders who play a part in the social
housing sector.
The initiative is set to reach hundreds of
social housing stakeholders and help pro-
vide up to 4 500 safe, affordable, well-located
From page 8
updated and the final version is not expected
until the second half of 2017.
Despite the unfortunate impasse in 2016,
the GWEC says South Africas wind indus-
try, under a government-designed competitive
bidding programme, has taken place within
a relatively short period of about five years,
placing South Africa among the leading new
wind markets globally. There are currently
20 wind farms fully operational and more
than 3 365 MW under different stages of
development.
With bidding for the first four rounds
of South Africas REIPPPP completed, and
with three rounds of preferred bidders hav-
ing reached financial close by 2015, the wind
industry has established itself as a major new
infrastructure sector and is now worth about
R75-billion, the report states.
It also notes that the REIPPPP has facilitated
both the rapid introduction of wind energy
and a steep decline in prices. Construction
14 ENGINEERING NEWS | May 1218, 2017
social housing units, accommodating about
16 000 low- and moderate-income people.
Shugart said these efforts would help alle-
viate poverty and contribute to economic
growth, gender equality and transformation.
Canadas development programming seeks
to help strengthen South Africas public insti-
tutions to meet the needs of all South Africans,
particularly the most marginalised.
He added that the project was an exam-
ple of Canadas focus on supporting South
Africas National Development Plan objec-
tives to reduce poverty and inequality, pro-
mote inclusive economic growth and build a
more capable State.
Shugart further stated that South Africa was
Canadas most important political and trad-
ing partner in sub-Saharan Africa and this
new project was part of a broad collaboration
between Canada and South Africa.
Sustainable development, the empower-
ment of women and providing opportuni-
ties for youth are also key priorities for our
government.
Canada is committed to ensuring that all
development assistance recognises the differ-
ences in the experience of women and men
. . . to deliver equitable benefits and con-
tribute to reducing gender inequalities, he
said.
He added that access to training and
times for projects average less than two years
and the electricity price paid to projects has
declined 68% within three years.
The price of wind energy in the last
Round 4 expedited was 0.62c/kWh, more
than 40% less than forecast prices for Eskoms
new-build coal plants, Kusile and Medupi.
However, besides the Eskom impasse, the
GWEC also highlights weak growth, currency
volatility, tendering costs and grid integration
costs as constraints to wind projects.
Additionally, extended transmission and
distribution works are needed, and the cost
recovery rules for this are not yet transparent
or consistent.
The GWEC believes the wind industry in
South Africa can pick up its very rapid growth
phase from where it stalled if the current
impasse can be overcome, which it describes
as a likely scenario. The council is, there-
fore, expecting a big year in 2017 for Africa,
led by Kenya, South Africa and Morocco.
Sawyer also notes that wind power is
IAN SHUGART
The project will help to revitalise inner-city
urban communities
professional improvement would be shared
equitably between women and men to ensure
that the benefits of this project did not entrench
existing inequalities.
Shugart pointed out that Canada and South
Africa were both committed to the global
Sustainable Development Goals, an over-
arching set of 17 global commitments that
together work towards ending poverty, pro-
tecting the planet and ensuring prosperity
for all.
Among these is goal Number 11 focus-
ing on sustainable cities and communities,
which speaks about the need for more safe
and affordable housing in urban centres. I
think this project is an excellent contribution
in meeting this objective, he said.
successfully competing with heavily subsi-
dised incumbents across the globe and that
wind penetration levels continue to increase,
led by Denmark, which is approaching 40%.
The GWECs rolling five-year forecast
sees almost 60 GW of new wind installations
in 2017, rising to a yearly market of about
75 GW by 2021.
Growth will be underpinned by Asia, with
China continuing to lead all markets. But
India, which set a new installation record in
2016, also has ambitious targets.
Market fundamentals are also seen as
strong in North America, and steady for
Europe, which will continue to lead the off-
shore market. Offshore wind has had a major
price breakthrough in the past year, and looks
set to live up to the enormous potential that
many have believed in for years.
We see the technology continuing to
improve and spread beyond its home base in
Europe in the next five to ten years, Sawyer
said.
AN
NEWS&INSIGHT
RAILWAYS

Critical Link
Mombasa-to-Nairobi rail line
set for commissioning
JOHN MUCHIRA | CREAMER MEDIA CORRESPONDENT

K
enya is gea r i ng up
for a new era in rail-
way transport with the
impend ing commissioning of a LONG-STANDING MAINSTAY
A Kenyan train travelling along a 1-m-gauge railway line; the country has
standard-gauge railway (SGR) depended on a 1-m-gauge system for more than a century
line on June 1.
The East African nation has
depended on a dilapidated 1-m- transport costs by as much as 35%. is testament to Kenyas determi-
gauge railway system for more Australia-based construction com- nation to become East Africas
than a century, but that is about pany John Holland, a subsidiary transport hub.
to change, following the comple- of CCCC, has been contracted to Apart from the new line, Kenya
Picture: John Muchira

tion of the $3.8-billion 472 km operate the SGR line. intends to construct a 3 500 km
SGR line from the coastal city T he SGR line will assist SGR network under the Railways
of Mombasa to Nairobi, the cap- in lowering the logistics costs Master Plan that will connect the
ital city. ATANAS MAINA associated with freight storage country to Uganda, South Sudan
The standard-gauge railway
The SGR line is the largest line will play a vital role in
and delivery, which will lead to and Ethiopia.
infrastructure project in post- decongesting the Port of Mombasa low freight transport costs for Maina says the Mombasa
independence Kenya. Its com- the business community, says Nairobi line is critical for the
missioning will mean low freight Maina. development of Kenya because
transport costs, which is a good News. The line, constr ucted The completion of the it will provide a more efficient
development for the economies of by C h i n a Com mu n icat ion s MombasaNairobi line, which mode of transport for freight in
the region, Kenya Railways MD Construction Company (CCCC), forms the first phase of a broader the northern corridor, the main
Atanas Maina tells Engineering ha s t he p ot ent ia l to re duce railway investment programme, transport route for cargo des-
tined for not only Kenya but also
Uganda, Rwanda and parts of the
FUEL INFRASTRUCTURE identities of the four shortlisted Democratic Republic of Congo.
companies. Trains will travel at 80 km/h,
Renewed interest in delayed Howeve r, t h e c o m p a n ie s
that have expressed interest
which will significantly reduce
transit times for cargo.
Uganda oil refinery plan in the project include Chinas
China Petroleum & Chemical
The line has a haulage capac-
ity of up to 4 000 t a trip.
JOHN MUCHIRA listed companies. Cor p or at ion (Si nop e c) a nd
CREAMER MEDIA Russias RT Global had won Guangzhou Dongsong Energy Struggling
CORRESPONDENT the tender to finance, build and G r o up; I E SC O, of Tu r key; Currently, cargo transport along
THE much-delayed crude oil operate the 60 000-bbl/d-capacity Profundo, of Spain; SNC Lavalin, the northern corridor, which com-
refinery in Uganda is back on refinery, which was slated for of Canada; Maire Tecnimot, petes with Tanzanias central cor-
track after eight international completion in 2018. Completion of Italy; and Yatra Ventures, of ridor, is mainly by road, at 97%.
companies expressed interest has now been rescheduled to the US. Rift Valley Railways, the opera-
in implementing the $4-billion 2020. The refinery, which will be tor of the 1-m-gauge line between
project. Although Uganda entered into located in Hoima district, in Kenya and Uganda, has been
Four of the bidders have been negotiations with SK Engineering western Uganda, is a high priority struggling to operate profitably.
shor tlisted, and the Uganda & Construction-led consortium, of project, owing to its importance The SGR line will play a vital
government intends to select one South Korea, which was named in add ressing t he count r ys role in decongesting the Port
of them before July, eight months the alternate preferred bidder, energy needs and saving Uganda of Mombasa, thus enable it to
after the Russian consortium that after the Russian pull-out, the the $1-billion-odd it spends on increase cargo throughput to the
was initially awarded the contract talks broke down, prompting the petroleum product imports each inland, says Maina.
to build the facility walked away authorities to seek fresh bids. year. The commissioning of the line
in unclear circumstances, We hit a snag last year when Uga nd a is d et e r m i ne d t o comes at a time when cargo traffic
Uga nd a E nerg y M i n ist r y we were about to sign with the implement the refinery project to at the Mombasa port is increas-
spokesperson Irene Muloni Russians, who then pulled out. refine its huge crude oil deposits, ing, having gone up by 2.4%
says the Uganda government is Now we have four consortia from estimated at 1.7-billion barrels from 26.7-million tons in 2015 to
currently undertaking technical which we will pick the winner to and has partnered with Tanzania 27.3-million tons in 2016.
and financial evaluations of build the refinery, she says. to build an export pipeline to the The SGR line is designed to
the bids submitted by the short- Muloni declined to reveal the Port of Tanga. To page 23

16 ENGINEERING NEWS | May 1218, 2017 RA

 COVERSTORY
AUTONOMOUS AMBITION
Least-cost electricity transition being played out at CSIRs Pretoria campus
Picture by Dylan Slater
T
he expansive Pretoria campus of the
Council for Scientific and Industrial
Research (CSIR) is increasingly
being taken off the grid with the roll-out
of renewable-energy projects as part of
its drive to demonstrate the potential of
renewable energy to the domestic energy
industry.
To drive research and development into
renewable-energy solutions for South
African applications, the CSIR established
a new research unit the CSIR Energy
Centre (CEA) in 2015 that focuses on
energy research. A major component of the
CEA is the CSIRs Energy Autonomous
Campus (EAC) initiative.
EAC programme manager Sengiphile
Simelane tells Engineering News that,
considering the global transition in energy
that is increasingly seeing a focus on
renewable energy, the CSIR decided to
launch a specific unit dedicated to conduct-
ing research into energy issues that impact
on South Africa and the wider region.
Energy research at the CSIR is divided
into various streams, which are relevant
to various issues in South Africa. A key
criterion of the departments establishment
18 ENGINEERING NEWS | May 1218, 2017
DYLAN SLATER | CREAMER MEDIA STAFF WRITER
was its role as a platform to demonstrate
physical results, which is in the form of the
EAC. He adds that a major influence in
work undertaken by the EAC is the focus
on a least-cost approach to determine the
methods of using renewable energy.
Attention, therefore, is being paid to
the results achieved through different
types of technology and various forms of
implementation of an array of renewable-
energy solutions and concepts to help the
CSIR understand the most cost-effective
option for specific applications, the
advantages and drawbacks of certain
technologies and combinations thereof,
and the risks associated with different
methods of implementation.
Simelane points out that the aim of
the EAC project is to be a working
demonstrator model to showcase key
factors of renewable-energy power
generation technology, including the
costs involved in implementing different
forms, the performance thereof, risks and
rewards, likely payback timeframes and
integration methods.
The ultimate plan for the EAC is to
transform the entire CSIR campus into a
RENEWABLE ENERGY
ROOFTOP INSTALLATION
The Energy Autonomous Campus of
the CSIR is rolling out its rooftop solar
photovoltaic units at an accelerated pace
smart power grid and use natural resources
for all its energy requirements. This plan
hinges on three primary forms of power
generation to form an integrated plant
that is not only flexible and reliable but,
eventually, also capable of producing
about 30 GWh/y of energy. This
integrated plant will comprise various
solar photovoltaic (PV) plants, a wind
turbine and a biomass plant.
These primary forms will be
supplemented by secondary forms of
energy, such as storage from batteries,
and hybrid generation such as hydrogen
fuel cells.
PV Fillip
Although a sizeable solar PV plant already
exists at the EAC currently contributing
just under 1 MW to the CSIR campus
network the integrated energy plant is
still largely under development.
It is planned that another 1 MW of
rooftop solar PV modules will be rolled
out in the upcoming financial year.
The currently operating solar PV plant
comprises ground-mounted and rooftop
plants.
LO
 To ensure that the data gathered on
an experimental basis involves the latest
available technology and innovations,
the solar PV plants contain an array of
different components and different
technologies, which will be monitored
to determine which technology is more
favourable in terms of output and
investment cost.
The ground-mounted solar PV plant
features single-axis and dual-axis tracking
units that use hardware and software to
follow the suns path throughout the day.
The single-axis tracking units follow the
sun only in one direction, while the
dual-axis tracking units can follow the
sun in any direction and use a more
precise live feed of the suns exact
position, which is generated using a
weather station.
The single-axis tracking units rely on
a preprogrammed path and are, therefore,
less efficient than the dual-axis tracking
units in dynamic conditions such as an
overcast day or during seasonal changes.
Compared with fixed-axis modules, the
tracking units result in about 20% greater
efficiency in harvesting the suns energy.
As an additional point of reference,
some of the solar PV modules will be
cleaned twice yearly, while another set
of modules will never be cleaned to
determine the effect of cleaned versus
uncleaned panels.
The dual-axis tracking plant also
contains monofacial modules
(conventional solar PV panels) and
bifacial modules, the latter of which
contains PV solar cells on both sides of
the panel to absorb direct and indirect
(reflected) sun energy.
The bifacial modules are also
separated into natural-reflection
(positioned on sand and grass) and
manufactured-reflection (positioned on
paving) to determine if a greater solar
LO
yield results from the different surfaces.
Simelane adds that, in time, the paving
on the bifacial unit will be painted silver
to determine if a highly reflective surface
has any impact on performance.
Energy Autonomy
It is imperative that any energy project
undertaken as part of the EAC has a
sound business case. In this regard, each
individual project and/or experiment needs
to be cleared by an executive committee
(exco) of the CSIR.
Simelane says that, in addition to being
a demonstrator model, the EAC is based
on assisting the entire CSIR campus to
reduce its dependence on power coming
from the national grid, thereby increasing
its green footprint and gradually lowering
the cost of buying power from Tshwane
municipality.
The levelised cost of energy (LCOE)
from the current solar PV plant is already
achieving the goal of being cheaper than
municipal power. The single-axis tracking
plant produces an LCOE of 83c/kWh,
while the dual-axis tracking plant produces
an LCOE of R1/kWh. The rooftop solar
PV plant produces an LCOE of 87c/kWh.
As we move forward, these prices will
drop purely because of the market, as the
prices for solar PV modules continue to
drop, says Simelane.
Although the solar PV plant is a main
focus of demonstrating renewable energy,
he says the EAC is also actively pursuing
other forms of renewable energy and
storage, including hybrid generation and
storage.
Wind Watchers
The next big project being devised by the
EAC is the incorporation of a large wind
turbine. Simelane says this will either be
a unit of 2 MW or 3 MW. The EAC is
conducting wind tests at the Pretoria
campus to determine wind speed and
prevalence at various points and altitudes,
with about five of the 24 months of
monitoring remaining.
If the wind turbine proves to be feasible
at the campus, the EAC aims to make
the asset a tourist attraction with the
incorporation of an observation deck on
its nacelle. We are planning a very tall,
large turbine, so it will be a landmark
feature in Pretoria, enthuses Simelane.
Further, owing to the solar PV plant
and wind turbine relying on naturally
occurring resources, which may
individually or collectively be unavailable
at times, the EAC also plans to construct
a baseload power generation plant in the
form of a 2 MW or 3 MW biomass plant.
Although he says the current plan is
to fire this plant using biomass generated
from solid waste from landfills processed
by Tshwane municipality, the plant will
be specified to operate using any biomass
feedstock.
We are in consultation with the City
of Tshwane, which has indicated a
willingness to avail about 50% of its
currently available solid waste to us for
feedstock, he notes.
Storage Concepts
Simelane says there will be regular
intervals when the integrated power plant
produces surplus power.
The campus has a peak demand of about
7 MW and an average demand of about
3 MW. This raises two options in terms
of what to do with surpluses: storage or
curtailment. He states that curtailment
is not an option, as this is wasted power,
and has led the EAC to seek out various
methods of storage to ensure no wastage.
The most obvious storage method, says
Simelane, is batteries which the EAC
plans to roll out soon. By the end of the
year, there will be various battery systems
in operation throughout the campus. These
will include the most popular types, such
as lithium-ion batteries, as well as any
other viable new technology.
Selling surplus power into the regional
Tshwane grid is also an option being
looked at.
To page 82
ENGINEERING NEWS | May 1218, 2017 19
NEWS&INSIGHT
STEEL 1
Cyclical Upturn
Steel demand seen growing again as recession risks recede
MEGAN VAN WYNGAARDT | CREAMER MEDIA SENIOR CONTRIBUTING EDITOR ONLINE
G
lobal steel demand would increase by
1.3% to 1.53-billion tonnes this year,
and by a further 0.9% to 1.55-billion
tonnes in 2018, following growth of 1% in
2016, the World Steel Association (worldsteel)
said in its latest short-range outlook (SRO).
worldsteel economics committee chair-
person TV Narendran noted that steel
demand recovery had been stronger than
expected in 2016, with the upside mostly com-
ing from China.
We believe, in 2017 and 2018, we will see
a cyclical upturn in steel demand, with a con-
tinuing recovery in the developed economies
and an accelerating growth momentum in the
emerging and developing economies.
Steel demand in developed economies is
expected to increase by 0.7% in 2017 and 1.2%
in 2018. The developing world, excluding
China, accounts for 30% of global demand and
STEEL 2
Global steel
production reaches
410Mt in Q1
MEGAN VAN WYNGAARDT
CREAMER MEDIA
SENIOR CONTRIBUTING EDITOR ONLINE
SOUTH Africa produced an estimated 1.56-
million tonnes of steel in the first quarter of the
year, the World Steel Association (worldsteel)
said in a recent note. This was roughly the same
as the 1.54-million tonnes produced in the first
WATER
Four bidders shortlisted
for Blantyre water project
MARCEL CHIMWALA
CREAMER MEDIA CORRESPONDENT
MALAWIS Blantyre Water Board (BWB)
has shortlisted four bidders for a project to
tap water from the Likhubula river to the city,
the countrys commercial capital.
The project will be financed by a $23-
million loan from the Export and Import
(Exim) Bank of India.
BW B CEO Henry Bakuwa says the
four shortlisted bidders comprise a joint
venture of WPIL and SMS Paryavaran,
20 ENGINEERING NEWS | May 1218, 2017
is expected to record increases in steel demand
of 4% and 4.9% in 2017 and 2018 respectively.
We expect Russia and Brazil will finally
move out of their recessions. However,
China, which accounts for 45% of global steel
demand, is expected to return to a more sub-
dued growth rate after its recent short uplift.
For this reason, overall growth momentum
will remain modest, Narendran pointed out.
With the risk of global recession reced-
ing and economic performance improving
across most regions, a number of geopolitical
changes still create some concern. US policy
uncertainties, Brexit, the rising populist wave
in current European elections and the poten-
tial retreat from globalisation and free trade
under the pressure of rising nationalism add
a new dimension of uncertainty in investment
environments, worldsteel notes in the SRO.
The automotive sector has been the top
quarter of 2016 and came on the back of flat
year-on-year production in March of 539 000 t.
Total global steel production for the 67 coun-
tries reporting to worldsteel totalled 145-million
tonnes during March, a 4.6% increase, while
first-quarter production totalled 410.5-million
tonnes, up by 5.7% year-on-year.
Asia produced 280.6-million tonnes of steel,
a 5.4% increase year-on-year. This was due
to Chinas March crude steel production of 72-
million tonnes, an increase of 1.8%, compared
with March 2016. Japan produced 8.9-million
tonnes in March, an increase of 1.8%.
The European Union produced 42.5-million
tonnes of crude steel in the first quarter, up 3.8%
Megha Engineering & Infrastructure, SMC
Infrastructure and Technafab Engineering.
Bakuwa reports that the four bidders were
selected after Exim Bank had scrutinised
ten applications from several interested
contractors.
The main components of the project include
the construction of an intake structure on the
Likhubula river; the laying of a 50km pipe-
line from the river to Nguludi, which is close
to the city of Blantyre; the construction of a
storage tank at Mpingwe Hill, in the city; and
the laying of supply mains from the storage
tank to two locations in the city.
The importance of [this project] cannot be
overemphasised. Firstly, it will supplement
the existing water supply systems by adding
performer among key steel-using sectors,
owing to the consumption-driven recovery
in the developed economies, low oil prices
and the government stimuli programmes sup-
porting automotive purchases in several coun-
tries. However, this may now be approaching
a peak.
The construction, building and infrastruc-
ture sector, which accounts for 50% of global
steel use, has been reflecting different pictures
of the developing and developed economies.
This sector has been a major driver of steel
demand in developing countries on the back
of urbanisation, but activity in the developed
economies since the 2008 financial crisis has
been more subdued.
This appears to be about to change, with a
recovery in construction activities apparent in
the European Union as a result of the improv-
ing economic conditions and the potential
renewal initiatives for infrastructure in the US.
The machinery sector could also benefit
from rising investment activities if the uncer-
tainties surrounding the global economy can
be contained.
On the other hand, depression in ship-
building activities is expected to continue for
some time, given the global glut in shipping
capacity.
year-on-year, with Germany recording a 1.9%
year-on-year increase to 3.9-million tonnes dur-
ing March, Italy producing 9.5% more crude
steel at 2.2-million tonnes and Spain produc-
ing 1.4-million tonnes, up 15.7%.
France produced 1.3-million tonnes of crude
steel, up by 18.1%, compared with March 2016.
The Commonwealth of Independent States
produced 25.9-million tonnes of crude steel in
the first three months of 2017, an increase of
4% over the same months of 2016.
Turkeys crude steel production for March
was 3.1-million tonnes, up 14%.
North Americas crude steel production
totalled 29.3-million tonnes, a 7.1% increase.
20 000 m3 (20-milllion litres) of water a day,
thus meeting the present demand for water,
says Bakuwa.
Secondly, it will assist in reducing exorbi-
tant electricity costs, as the system will largely
be operated under gravity specifically, the
raw water transmission mains.
The project is aimed at curbing water
shortages in Blantyre, which are the result
of increasing demand caused by rapid popu-
lation growth.
Malawi will also implement a project to
tap water from Lake Malawi to supply the
city of Lilongwe.
The contract for the project has been
awarded to South Africa-based Katho Civils
in a restricted tendering process.
EG
NEWS&INSIGHT
INFRASTRUCTURE companies to introduce their CIG peers prod-

African Energy
ucts and services. A tangible example is
Ghana, where Conco has an excellent record
but where Conlog has never operated.
He also remained optimistic about oppor-
CIG uncertain about local outlook, but sees growth tunities in South Africa, despite the delays in
starting Round 4 renewable-energy projects.
in rest of Africa CIG is a major participant in Round 4, hav-
ing secured work valued at R2.3-billion. We
MEGAN VAN WYNGAARDT | CREAMER MEDIA SENIOR CONTRIBUTING EDITOR ONLINE have to bear out the delay in starting Round 4,

P
as we are confident that the programme will
a n-A fr ica n infrastr ucture group currency had improved in Angola and AES happen and will contribute significantly to
Consolidated Infrastructure Group currently had no backlog on its offshore cre- our South African power business over the
(CIG) posted revenue growth of 29% to ditor payments. next three years once active. Gamsu pointed
R2.7-billion for the six months to February 28, Looking ahead, he noted that CIG would out that addressing new black economic-
owing to its strategy to expand across Africas leverage the groups cross-selling opportuni- empowerment legislation in South Africa and
energy markets. ties by piggybacking the established pres- the sectors skills shortage would continue to
The company further reported a 20% year- ence and local market experience of group pose challenges to growth.
on-year increase in its earnings before inter-
est, taxes, depreciation and amortisation to
R330-million; however, it noted that its earn-
ings were negatively impacted on by a reduc-
tion in profitability in CIGs Angolan associate, Call Irene on +27 10 060 2955
AES, owing to a slowdown in oil exploration, Email info@g5properties.co.za
a stronger South African rand and higher
interest costs.
Earnings per share and headline earnings
per share were down 18.5% to 111c apiece. Ready 1st September 2017!
The group ended the period with cash of
R548-million, compared with R481-million
as at end-February 2016.
Meanwhile, CIG posted a strong order book,
growing 25% year-on-year to R6.6-billion.
CEO Raoul Gamsu said he remained con-
fident in the groups focus on Africa and the
Middle East, and was pleased at the con-
tinued momentum in CIGs international pen-
etration in the period; the Middle East-Africa
region presents a wealth of opportunity given
the upward trend in renewable-energy pro-
jects and continued demand for and funding
of electricity grid infrastructure.
The companys power division remained
the key driver of results and performed well, LETTING FROM
with its renewables start-up, CIGenco, con- R55 p/sqm
cluding its first contract for an independent
power project in Namibia.
In South Africa, the division faced mixed 10 PREMIUM
conditions, with uncertainty in the municipal
and renewable-energy sectors balanced by con- UNITS
tinued infrastructure investment on the part
of Eskom and the mining sector.
The building materials and rail divisions Each unit comprising spacious warehousing with modern offices, generous
both recorded stronger and positive growth, internal stacking heights of minimum 11m, excellent security, ample yard
mainly owing to improved market condi-
tions and expanded market share. AES, the space and parking areas. Ramps and docking level provisions. Centralized
oil and gas divisions waste service business backup electricity supply. Conveniently situated in the Western Capes
in Angola, fared worse and was impacted on Northern Suburbs Brackenfell.
by reduced oil exploration activity and the
appreciation of the rand.
CIG acted quickly together with local
management to contain costs in the slower
period and AES continues to deliver positive
returns on investment for the group, said
Gamsu, adding that conditions for foreign

AN ENGINEERING NEWS | May 1218, 2017 21

NEWS&INSIGHT
ENERGY & FOOD
Secure with Solar
High-level support for innovative agrosolar greenhouse concept
MIA BREYTENBACH | CREAMER MEDIA STAFF WRITER
T
he Department of Agriculture, Forestry
and Fisheries (DAFF) has pledged its
support for the SUNfarming Food &
Energy project run by North-West University
(NWU), in Potchefstroom, in the North West
province, which promotes the growing of
affordable and nutritious food in local munici-
palities, thereby effectively addressing house-
hold food and nutrition insecurity.
The project is a partnership between
Germany-based photovoltaic (PV) specialist
SUNfarming and NWU.
The project, which is cofinanced by the
German government, focuses on the applica-
tion of technological engineering solutions
and takes traditional, small-scale vegetable
farming to new heights.
Special so-called agrosolar greenhouse
structures are used to grow vegetables, such
as tomatoes, spinach, cauliflower, lettuce, cab-
bage, broccoli, onions and herbs. The project,
which started production in June 2016, cur-
rently comprises three greenhouses, or tunnels.
While agricultural produce is grown, the
solar panels mounted on top of the tunnels
generate electricity.
Solar tunnel production offers much higher
INVESTMENT
Maluti-A-Phofung
SEZ officially launched
ANINE KILIAN
CREAMER MEDIA
CONTRIBUTING EDITOR ONLINE
THE 103 ha Maluti-A-Phofung Special
Economic Zone (MAP-SEZ), in Harrismith,
in the Free State, forms an important part of
governments SEZ programme, which is aimed
at ensuring excluded areas of the country are
developed and enabled to contribute to the
countrys economic growth.
Speaking at the launch of the SEZ, President
Jacob Zuma said the SEZ was aimed at cre-
ating growth opportunities outside traditional
manufacturing and industrial areas.
We are doing this by promoting industriali-
sation and the development of township and
rural economies, he added.
He stated that government was fully com-
mitted to pursuing and implementing a pro-
gramme of radical economic transformation,
noting that one of the critical components of
achieving transformation was the notion of
22 ENGINEERING NEWS | May 1218, 2017
partnership between government, higher learn-
ing institutions and business.
Zokwana highlighted that initiatives such
as these would help the department reach its
goal of establishing one-million jobs in agri-
culture by 2030.
Agriculture is the answer to various prob-
lems. We need a doctor or dentist or attorney
several times a year, but we need a farmer
yields than conventional farming. No soil is at least three times a day. We must strive for
required to grow the vegetables and water friendlier methods of agricultural production.
economy is increased through drip irrigation. What NWU and SUNfarming are doing here
Through the project, several women from is the answer to these challenges we are fac-
the local Ikageng community are being trained ing within the agriculture sector.
in cultivation methods, insect control, nutri- What I saw today is the future of agri-
tional values of the different crops, root sys- culture... It is important that these and
tems and harvesting techniques. other projects seek cooperation agreements
We are no longer planting our vegetables with the private sector to expand it further
using the soil, but coco fibre. Our system of across the province and the country, the
farming saves water. Our vegetables pots are Minister said.
irrigated on time and we produce fresh vege- N W U Potchefst room ca mpus rector
tables, Buni Maretlwa, one of the workers Professor Fika Janse van Rensburg said
at SUNfarming, said. many communities would benefit from this ini-
NWU and SUNfarming donated the initial tiative should it be rolled out on a bigger scale.
plants, fertiliser and compost and the reve- SUNfarmings objective is to roll out the
nue generated from the produce will enable project to all universities and schools in
the community members to sustainably grow Africa and it is collaborating with universi-
produce for many production cycles. ties in Kenya, Ghana, Zambia and Botswana,
At a site visit to the project last month, besides other countries, to achieve this goal.
Agriculture, Forestry and Fisheries Minister Through the cooperation with African edu-
Senzeni Zokwana said, in view of the pro- cational institutions, we seek to lay the ground-
jects innovative technology for agriculture, work for future investments and joint ventures
the department wanted to see this replicated between our company group and local com-
in other parts of the country, as it effectively munities in your country, said SUNfarming
deals with the issue of climate change and founder Peter Schrum.
the scarcity of water and land, calling for a ENGINEERING NEWS COUPON ON PAGE 82 E450989
completely neglected, resulting in their deve-
lopment potential being severely constrained.
He added that many of the excluded areas
lacked the critical factors for long-term eco-
nomic and industrial success and that the SEZ
programme was an important catalyst that
Picture by Senior Chief Photographer Duane Daws
would allow these areas to contribute to the
countrys economy.
This launch demonstrates our promotion
of industrial development, which is key to the
nations long-term economic success and pros-
perity, Zuma said.
He further noted that the SEZ, initiatives
like it and the Department of Trade and
RIBBON CUTTING Industrys broader industrial parks initiatives
President Jacob Zuma and Trade and Industry were critical to efforts to radically transform
Minister Rob Davies the economy. He also noted that, to date, the
SEZ programme had attracted over R9-billion
a balanced regional economy, together with in investment into the country.
industrial development. Trade and Industry Minister Dr Rob Davies
Sout h A f r icas economy continues agreed that the SEZ programme was a critical
to rely on the regional investor hubs in tool for attracting foreign direct investment,
Gauteng, eThekwini, the Cape Peninsula creating decent jobs, establishing new indus-
and Pietermaritzburg. These regions collec- trial centres, and developing and improving
tively account for 70% of the nations gross existing infrastructure.
value-added tax (VAT), Zuma pointed He stated that the SEZ programme had
out, stating that many other regions were entered full implementation phase.
EG
NEWS&INSIGHT
CEMENT meet its domestic needs but also From page 16

Cement Incentives
export to neighbouring
countries. Ethiopia aims
to produce 27-million tons
of cement each year by
Ethiopia says it will continue 2020, making it an African
powerhouse in cement
to support cement investments production and a key exporter
of the material.
JOHN MUCHIRA | CREAMER MEDIA CORRESPONDENT The commissioning of
carry 22-million tons of cargo
a year, equivalent to 40% of the
Mombasa ports throughput.
In anticipation of increased
container throughput at the port,
the Kenya government is modern-
ising and expanding the inland
container depot (ICD), in Nairobi.
When completed, by August,

E
thiopia will continue
to offer investors in
the cement industry
attractive incentives as it seeks
to dominate the cement trade in
the wider East African region.
Cement production in the
Horn of Africa nation has
increased tenfold during the
past decade, owing to the entry
of new investors attracted by
incentives like cheap electricity,
government-provided land and
tax incentives.
Support
Government will continue
to support investors in the
cement industry by providing
them with clean energy,
logistics infrastructure and
human resources, among
others, to help them become
competitive in the international
market, said Prime Minister
Hailemariam Desalegn when
he commissioned a plant
owned by Habesha Cement, a
joint venture involving South
Africas Industrial Development
Corporation and Pretoria
Portland Cement, as well as
local shareholders. It is the
newest cement factory in the
country.
The Habesha plants commis-
sioning increased Ethiopias
cement production capacity to
16.4-million tons a year, ten
times more than ten years ago.
The production surge has
enabled the country to not only
Habesha Cement comes barely
two years after the opening
of the Dangote plant in the
country, which has a yearly
capacity of 2.5-million tons of
cement and is the biggest in
East Africa.
Yearly Production
The Habesha plant, which
was constructed at a cost of
$155-million by Chinese com-
pany Northern Heavy Industry,
has a yearly production capacity
of 1.4-million tons.
It is located in Holeta town,
some 35 km west of the capital,
Addis Ababa. Besides Habesha
and Dangote, other cement
manufacturers in Ethiopia
are Mugher, Messebo, Derba
Midroc and Ethio Cement.
the ICD will have five additional
SGR lines serviced by six gantry
cranes for offloading and loading
containers, a staking yard for at
least 5 000 twenty-foot equiva-
lent units (TEUs) and a yearly
throughput of 405 000 TEUs.
Currently, the depot has a yearly
throughput of 180 000 TEUs.
T h e s e c o n d p h a s e of t h e
SGR project will see the line
being extended from Nairobi to
Naivasha, a distance of 120 km,
at a cost of $1.5-billion, funded
by a loa n f rom t he Ch inese
government.
Kenya has also signed con-
struction agreements with CCCC
covering Phase 2B, from Naivasha
to Kisumu, and Phase 2C, from
Kisumu to Malaba, on the Uganda
border.

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Take the first step with a postgraduate

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project management.

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Year programmes and short courses:

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Engineering Management
Technology Management
Maintenance Management
Systems Engineering
Asset Management

For more information on programmes offered by the GSTM,

visit www.up.ac.za/gstm

RA ENGINEERING NEWS | May 1218, 2017 23

NEWS&INSIGHT
TRUCKS was exposed to additional biologically effec-

Light & Load

tive daylight under clearly defined conditions.
The extra dose of light took three forms
involving different intensities:
steady light while driving, where the inten-
Daimler testing the effects of augmented sity was adjusted to the exterior light level;
an intense light shower of maximum inten-
lighting on health of truckers sity during the tests, before and after driving;
and
IRMA VENTER | CREAMER MEDIA SENIOR DEPUTY EDITOR light while reclined, also of maximum inten-

A
research team from German truck
maker Daimler recently explored an
interesting question in the darkness
of Finlands polar night: Does the biological
effect of light have a positive influence on the
wellbeing and performance of truck drivers?
Eight Daimler test drivers simulated two
typical working weeks for truckers at a site
in Rovaniemi, in Northern Finland, in the
Arctic Circle.
The truckers alternated between driv ing
for one week in a truck cab with conventional
lighting and for another week in a cab with a
Daylight+ module that provides additional day-
light while driving and during breaks.
In order to ascertain the possible benefits of
applying daylight inside the truck cab, project
manager and head of the experiment Siegfried
Rothe, of the Daimler research department,
defined this working hypothesis an applica-
tion of biologically effective light with a wave-
length of between 460 and 490nanometres has
a positive effect on humans.
Nobody thinks too much about daylight, pro-
vided they do not suffer from a lack of light.
Yet light dictates how life on earth is organised.
The shift from day to night provides struc-
ture as a short-term time cycle, as do the
changing seasons. Also, evolution means
that the human internal clock has adapted to
these circumstances, with this clock helping
in synchronising circadian rhythms.
For many years, scientists have been
researching the complex relationships between
the availability of biologically effective light
and the physical and mental states of human
beings.
Various related health problems have been
defined. One of the most common is seasonal
affective disorder.
Lack of light is a serious problem for many
people in Northern Europe, for example, which
barely gets light during the winter months.
This can result in reduced performance and a
lack of motivation.
Light therapy is a standard method of treat-
ing these symptoms.
When viewing trucks in terms of daylight,
Rothe determined that the shape of a conven-
tional truck cab allowed only a comparatively
low percentage of natural light to reach the
drivers light receptors. This finding prompted
him to think about possible solutions.
An initial series of experiments with engi-
neers from Daimlers test drive department
proved positive. The subjective condition of
all test subjects improved significantly under
the influence of an additional dose of light,
regardless of the time of day.
Another finding proved surprising test
drivers with more daylight in the cab drove
more economically. During the formal expe-
riments in Rovaniemi, Rothe examined how a
drivers performance changed when he or she
sity, during breaks while the driver relaxed.
During the night, the test subjects slept in a
normally darkened truck.
The team documented the test results with
support from co-researcher Dr Michael
Schrauf and the use of electroencephalo-
graphy, electrocardiography and electrooculo-
graphy and other physiological measurements,
as well as saliva samples, to ascertain levels
of the sleep hormone melatonin.
Mental state and professional performance,
which are closely related, were examined
using standardised psychological test proce-
dures (sustained attention and reaction tests on
the computer) and by recording vehicle data
through the FleetBoard telematics system.
Rothe estimates that it will take several
months to sift and analyse the extensive data
from the series of experiments conducted in
the Arctic Circle.
Only then we will be able to make a
recom mendation as to whether the test find-
ings should lead to changes in the design of
cab lighting.
Initial feedback from the truck test drivers
already provided some new insights.
The drivers consistently reported that they
perceived the space inside the cab to be con-
siderably more pleasant with the additional
light fittings.
When designing the series of tests, we
hadnt even considered that the space might
appear larger, says Rothe.

LOGISTICS

Online bidding platform aims to

disrupt truck transport industry
IRMA VENTER
CREAMER MEDIA
SENIOR DEPUTY EDITOR
LINEBOOKER wants to do for
the truck transport industry what
Ubers introduction did within the
metered taxi industry disrupt
the traditional business model,
cut costs and improve competi-
tiveness and convenience.
A spin-off from the innovation
arm of CCS Logistics (part of
Oceana Group), Linebooker has
launched an online bidding plat-
form that allows customers to seek
the least expensive truck transport
for their goods.
Linebooker was born from our
discomfort with the transport bro-
ker business model, says CCS
Logistics MD Naud Rademan.
We found the pricing model
rather murky.
Transport brokers typically
charge a brokerage fee to marry
a transporter and a company in
need of transport. Companies seek
a transporter as they either do not
own a truck fleet or because they BIDDING WAR
To page 26 Transport companies have a two-hour window to bid on a load

24 ENGINEERING NEWS | May 1218, 2017 EG

NEWS&INSIGHT
AUTO INDUSTRY
Consolidated Model
Chief selected for Imperials newest business venture
IRMA VENTER | CREAMER MEDIA SENIOR DEPUTY EDITOR
T
he automotive business of the JSE-
listed Imperial group has a new leader.
Former Imperial CFO Osman Arbee
was named the CEO of Imperials newest
business venture, the Motus Corporation, in
January. Arbee has been with Imperial for
close to 13 years.
Manny de Canhas retirement from
Imperials Associated Motor Holdings with
Imperial buying out his 10% share of the busi-
ness has allowed the JSE-listed group to
restructure its interests into two businesses.
Imperial now consists of the Motus and
Imperial Logistics divisions, which currently
generate roughly R70-billion and R50-billion
in revenue a year respectively.
Motus came into existence on January 1,
consolidating all Imperials vehicle import,
distribution, retail, rental, aftermarket parts
and financial services businesses into one
division, operating through 1 360 dealerships,
depots, and car rental and franchise outlets.
Imperial Logistics was formalised as one
AN
business unit in July 2016.
The restructuring has prompted the question
whether Imperial will consider listing these
entities as separate units on the JSE.
Before we consider listing either of these
divisions, we need to run them as two focused,
increasingly self-sufficient effective businesses,
and we think that will take us to 2018, says
Arbee.
Once we get to June 2018, we will be in
a better position to decide whether a sepa-
ration is the right decision for stakeholders.
Right now we are trying to focus two large
independent businesses and see how we can
maximise our returns.
Currently, these divisions are still held
together by the Imperial group balance sheet.
Once we get some rubber on the road, we can
question if they still fit together as a family.
Arbees task for the next 12 months is to pull
a relatively young team of leaders together,
and to create whatever synergies, whatever
cost savings and economies of scale we can
OSMAN ARBEE
The way forward for Motus is to pull the
businesses together, see where the industry is
headed
get in terms of warehousing, our footprint
[and] the way we distribute our cars and man-
age our parts. We are one family now in the
Motus division, and we need to run the busi-
ness as one.
Arbee also wants Motus to sell all its avail-
able motor-related financial services across
the family.
The longer-term goal is to ensure the sus-
tainability of the business going into the future.
To page 28
ENGINEERING NEWS | May 1218, 2017 25
NEWS&INSIGHT
AUTO INDUSTRY

Gearing Up
BMWs Rosslyn plant to start producing X3 early next year
IRMA VENTER | CREAMER MEDIA SENIOR DEPUTY EDITOR

P
roduction of the new X3 at the BMW
plant in Rosslyn, outside Pretoria, for
the local and export markets, will start
in the first half of 2018, says BMW Group
South Africa (SA) and sub-Saharan Africa
CEO Tim Abbott.
The plant currently produces the 3Series
sedan, also for the local and export markets.
In 2016, the facility produced 63000units,
with 2017 to deliver roughly the same volume.
Around R6-billion is being spent on the
Rosslyn facility to gear up for X3 production,
says Abbott. With the new X3, the plant will,
technically, be designed for a potential maxi-
mum capacity of 71000 units [a year].
Abbott adds that the sports utility vehicle
(SUV) is the right vehicle for Africa going
forward. He believes the German carmaker
will eventually also find a market for the X3
in African countries outside South Africa,
such as Nigeria and Kenya, when the conti-
nents economy picks up again.
In 2016, around 30% of all BMWs sold
globally were SUV X-models. X-model sales
jumped from 295000 units in 2010 to 644992
units in 2016.
Big Change
Having focused exclusively on 3 Series
sedan production since 1990, gearing up
for X3 assembly has led to the biggest
infrastructure change in the history of plant
Rosslyn, notes Abbott.
Around R500-million of the R6-billion
capital expenditure budget for the X3 was
spent over an eight-week shutdown period in
December 2016 and January 2017.
Around 1700 people spent a total 1.4-
million workhours at the plant, moving 2225t
of material into the plant and removing 1959t
from the facility. Around 226km of cabling
was also laid during the shutdown.
The X3 project sees BMW Group SA mak-
ing use of a new body shop, an upgraded paint
shop, a new combined vehicle body stacker
and a refreshed assembly line.
A new training centre, due to open in the
middle of the year, will also gear up the
companys employees for production of the
newX3.
BMW Group SAs paint plant has always
been the Achilles heel, in terms of qua lity,
of the Rosslyn plant, says Abbott. Now it
is comparable with the best anywhere in the
world.
The new paint plant will save 20% on its
energy use, partly by cutting the primer phase
(and the use of an oven after this phase) from
the traditional four-phase process of e-coat,
primer, base coat and clear coat. A new inte-
grated paint process sees the base coat tak-
ing over the function of the primer coat. The
Rosslyn plants new combined body stacker
can store up to 132painted and unpainted car
bodies. At 32m high, it is the tallest build-
ing in Rosslyn.
The plants new body shop will increase the
number of robots used from 190 to 288, says
ROBOT FARM
The plants new body shop increases the
amount of robots used from 190 to 288
Abbott. Job opportunities will also increase.
A number of BMW Group SA staff have been
upskilled to become maintenance person-
nel at the bodyshop. We also do a lot more
manual work in our body shop than in
Germany, for example, in an effort to create
jobs, says body shop GM Danny Bester.
The new 26000m 2 body shop, with its
improved ventilation and use of natural light,
is twice the size of the old body shop.
The old body shop will become a logistics
space once X3 production starts.
The assembly plant received a new roof as
part of the X3 project.
The roof had to be lifted by 14m to enable
production of the taller X3 (compared with
the 3Series). The new roof was built over
the existing roof, with the existing roof then
dismantled.
The planned change in production also
introduces a hanger system to the plant, which
brings the vehicle being assembled to the
worker (associate in BMW-speak), instead
of the associate moving to and from the unit.
The plant also had technology installed that
turns vehicles on their sides to allow for the
easy fitment of components such as fuel lines,
instead of associates working overhead.

From page 24
need to subcontract other trans-
porters to assist them with their
operations.
Linebooker is an online plat-
form, explains Linebooker sup-
ply chain manager Nick Hoffman,
where customers log on, stating
details such as the pallet count,
pallet height, loading point, deli-
very point and temperature range
of the goods to be transported.
Transport companies then have
a two-hour window to bid on the
load, with bids moving in R200
increments. The customer selects
a winning bid after the two-hour
period, only then learning the
identity of the company that will
provide the service.
This very open, transparent
system means smaller transport-
ers can easily compete with the
big guys, says Hoffman.
Linebooker charges a book-
ing fee of no more than R450,
dependent on the value of the suc-
cessful bid.
We execute the load, notes
Hoffman. We take full accounta-
bility for the delivery of the goods.
We track the truck and the deliv-
ery of the load. We pay the trans-
porter within 15days, while we
will give the customer 30days
to pay us.
A Linebooker phone app allows
the driver responsible for the deli-
very to note when he is loading the
vehicle and when he has arrived
at his destination, as well as to
upload proof of delivery.
The customer and Linebooker
can view the drivers progress in
real time.
The system currently includes
40 transport companies. Load
capacity starts at 12t.
We vet these transport compa-
nies and their trucks through face-
to-face visits, says Hoffman. We
inspect the vehicle and make sure
the correct insurance is in place.
Rademan says Linebooker
delivers several benefits for the
industry, such as improved effi-
ciency, increased competition, bet-
ter visibility of the logistics chain,
a single creditor, the opportunity
to compare rates and reduced
paperwork, as well as a 13% sav-
ing in transport costs to the cus-
tomer on average. Linebooker also
provides the opportunity of lane
balancing, adds Hoffman.
When a truck delivers goods
from Johannesburg to Cape Town,
that truck does not have to come
back empty, which costs around
R8 000 in fuel alone. Through
Linebooker, that truck can find
a load to carry back to Gauteng.
Rademan says Linebooker will
carry its 1000th load this week,
of which 300 were executed in the
last month.
We have experienced exponen-
tial growth in the last two months.
We aim for 2000 loads a month
by July.

26 ENGINEERING NEWS | May 1218, 2017 EG

NEWS&INSIGHT
SCIENCE & TECHNOLOGY you invest in knowledge generation. Science

Protect & Promote

has made so much difference in our lives.
That science . . . has also created wealth. Our
focus, through Nipmo (National Intellectual
Property Management Office), when we fund
South African intellectual property offices research, the knowledge that is generated
that IP is protected.
seeking to stimulate innovation The DST is also getting universities to set
up technology transfer offices to protect and
KEITH CAMPBELL | CREAMER MEDIA SENIOR DEPUTY EDITOR commercialise the IP developed by them.

T
When you have IP, you mustnt behave like
he Compa n ies a nd I nt el le ct u a l IP is [currently] all over [the place], she a stingy husband or a stingy boyfriend, he
Property Commission (CIPC), an observed. The DTI is mandated to lead cautioned. The value of IP is its utility. When
agency of the Department of Trade and policy in this area. The success of what we you protect IP, it is to protect it so it can be
Industry (DTI), has been holding talks with are doing in the IP space is dependent on our used. Similarly, the DST is creating IP reposi-
the Department of Higher Education about success in collaborating. tories, so that local researchers and entre-
establishing a national intellectual property South Africa . . . [has a] very fragmented preneurs can access South African IP. So, if
(IP), or innovation, academy, reported CIPC IP [environment] . . . [with] pockets all it isnt being utilised, you can take it forward.
executive manager: innovation and creativity over gover n ment , p oi nt e d out C I P C We ought to educate, to raise awareness,
Nomonde Maimela. She was speaking at commissioner Rory Voller. Involved with so you are comfortable talking about IP,
a function to celebrate World Intellectual IP development and protection are the DTI, asserted Maimela. Not all of us know about
Property Day on April 26 at the Innovation the Department of Science and Technology this thing, especially the youth. There is
Hub, in Pretoria. (DST), the Department of Health, among a whole [IP] value chain. Once you register
She stressed that these talks were in their others. We need to centralise it. Africa has [your patent or design] with the CIPC, you
early stages. The proposed academy would many challenges, he empha sised. A lot have to ask: how do I commercialise this? It
be a large innovation/incubator complex, of challenges can be over come if we, as a is like we are a team in a relay, passing the
apparently inspired, or partly inspired, by continent, can understand the IP situation and baton one to another. We need to elevate our
such a complex now operating in Russia. use the [global] innovation and IP system. country. South Africans are very innovative,
The intent would be to concentrate as much Over a couple of years, we have been very inventive. We are a very inventive nation.
as feasible of the countrys IP development in look ing at how best we (DST) can protect IP (The Innovation Hub, which hosted and was
one big place. developed through public funding, stated DST one of the sponsors of the World Intellectual
The idea is that such a concentration would deputy director-general: technology innovation Property Day celebration, is an agency of
accelerate IP development in the country by Mboneni Moufhe. We really felt we need to the Gauteng provincial government, not the
bringing hitherto widely scattered innovators find a way to protect [this] IP. The country, national government. It is also currently
into proximity with each other. We can get as a whole, invested R2-billion in research regarded as the leading science park in Africa.
where we want to go faster when we are and development in the 2014/15 financial The other sponsors were the DSTs Nipmo and
working together, she affirmed. year, he noted. When you invest in science, biotechnology association AfricaBio.)

INFRASTRUCTURE month, two lanes of the M1 would

Construction of M1 be open in each direction, while the

Ettrick road onramp (southbound)

Oxford, Federation
would reopen and the Oxford road
offramp (northbound) would close.

bridges enters last leg

Also speaking at the briefing,
Transpor t MMC Nonhlanhla
Picture by Senior Chief Photographer Duane Daws

Makhuba said a high-quality road

ANINE KILIAN network was an essential element of
CREAMER MEDIA
CONTRIBUTING EDITOR ONLINE a prosperous and thriving city that
was able to attract much-needed
THE Johannesburg Roads Agency (JRA) invest ment a nd move people,
reports that construction upgrades on the M1 services and goods effectively
freeways Oxford and Federation bridges will across the city.
enter the third and final phase this month. The essential rehabilitation of
The R127-million project is 75% complete, NONHLANHLA MAKHUBA our ageing M1 freeway and bridge
A high-quality road network is an essential element of a
with most of the fill and stabilisation of prosperous and thriving city infrastructure is a major project to
underground conditions completed on the improve mobility in Johannesburg
southbound section. for school learners, employees, taxi
A 3 km stormwater drainage system on He added that the application of protective and bus drivers and the 80 000 vehicle owners
the freeway between Rockridge bridge and coatings was also under way and work would who use the freeway daily, she said.
Federation bridge is being upgraded, as well now move to the northbound section of the M1, She added that, when investors took deci-
as Oxford and Federation bridges below necessitating a switchover of lanes. sions on whether they would expand their
the freeway, JRA MD Dr Sean Phillips Further traffic disruptions should be businesses into specific cities or regions, they
said at a media briefing in Johannesburg expected, he warned drivers. always enquired about the quality of available
last week. The JRA pointed out that, as from this infrastructure.

RA ENGINEERING NEWS | May 1218, 2017 27

NEWS&INSIGHT
NUCLEAR
New Course
Court ruling means new approach needed for SAs
nuclear programme
KEITH CAMPBELL | CREAMER MEDIA SENIOR DEPUTY EDITOR
T
he South African Nuclear Energy
Cor p or at ion ( Ne csa) ca l le d for
caution and common sense in the
press release it issued on April 28 in response
to the Western Cape High Court judgment on
April 26, which set aside as unconstitutional
and unlawful certain policy decisions and
intergovernmental agreements announced and
entered into by the South African government
regarding the countrys planned construction
of new nuclear power plants (NPPs). It high-
lighted that the judgment had not derailed the
countrys new NPP programme.
The court has ruled on an administra-
tive process, stressed Necsa chairperson
Dr Kelvin Kemm. The court has not ruled
on the wisdom, or otherwise, of nuclear power.
A false impression has been created that this
judgment is antinuclear. It is not and comment
to that effect is premature and regrettable.
There are many misunderstandings and
false perceptions around nuclear and the pub-
lic is often fed misinformation about the costs,
benefits, safety and South Africas long-term
energy requirements, he affirmed. One posi-
tive aspect of this ruling is that it presents the
opportunity for the facts and truth to be fully
aired and debated so that rational people can
think and decide on realities, not hearsay. The
antinuke lobby has had the platform to them-
selves, not least because the nuclear industry
has been quiet. This will change. Necsa and
the nuclear industry intend to step up efforts to
put the facts before the court of public opinion
and to present a balanced and evidence-based
case for nuclear energy as the right energy
option for South Africa.
From page 25
In current market conditions, things are
changing constantly, such as peoples buy-
ing patterns, says Arbee. This includes the
way people choose cars the way they see
the ownership of vehicles. Disruptive service
offerings, such as Uber, are coming naturally
to younger people, for example.
We need to invest in information tech-
nology, we need to make sure we understand
the consumer, and we need to make sure we
are more efficient in the way we sell vehicles.
In short, says Arbee, the way forward for
Motus is to pull the businesses together, see
where the industry is headed, and then ask
28 ENGINEERING NEWS | May 1218, 2017
Picture by Senior Chief Photographer Duane Daws
In its reaction, also issued in a press release
on the same day, Business Leadership South
Africa (BLSA) hailed the judgment. Once
again, the rule of law has triumphed in South
Africa. It congratulated the groups (Earthlife
South Africa and the Southern African Faith KELVIN KEMM
Communities Environment Institute) which A false impression has been created that this
brought the case before the court. judgment is antinuclear
Judge Lee Bozalek . . . has assured South
Africans of future public participation and We look to the Department of Energy for
more transparency, it averred in its press guidance on the matter and will take [its]
release. BLSA applauds this ruling, particu- lead on the next course of action. The asso-
larly given the nuclear new-build programme ciation emphasised that the High Court had
was a red flag for ratings agencies. It pointed passed no judgment on nuclear energy but
to ratings agency Fitch as having cited the new had focused its concerns on the procedures
NPP programme as a key reason for the dis- that had been adopted by government in
missal of former Finance Ministers Pravin carrying out its nuclear policy.
Gordhan and Nhlanhla Nene. Niasa reaffirmed its commitment to proper
BLSA has also noted and supported the procedures, transparency and fair trade in
clear findings of the Integrated Resource Plan, the implementation of the new NPP pro-
which suggest South Africa does not need a gramme. It pointed out that all its members,
R1-trillion nuclear plan. In our current low- which include all the companies seeking to
growth environment, the costs and affordabil- sell NPPs to South Africa, had signed a dec-
ity of a nuclear programme will strain public laration committing themselves to a fair and
finances already under pressure. The judges transparent acquisition process that respected
findings have forestalled government from South African law.
flouting Constitutional requirements, side- Nuclear technology is not new to South
stepping Parliament and the public and defy- Africa and would play its part in an energy
ing the standards of transparency required in mix for the country, which would, Niasa stated,
a democracy . . . BLSA welcomes the ruling meet both the countrys baseload electricity
that the Minister of Energy and the National requirements and climate change commit-
Energy Regulator of South Africa will make ments. [T]he argument for nuclear technol-
a new, more accountable determination. ogy is undisputed and supported by scientific
The Nuclear Industry Association of research, said Msebenzi Equally so, we
South Africa (Niasa) issued its reaction on respect our democracy and the need for cor-
April 27. As an industry, we respect the courts rect process and procedure.
judgment, stated Niasa MD Knox Msebenzi. ENGINEERING NEWS COUPON ON PAGE 82 E451000
ourselves how we make Motus sustainable seeks to earn more revenue offshore. Around
in this industry. 13% of Motuss profits are currently earned
That sustainability, he adds, involves outside South Africa, mainly through vehi-
remaining an importer of vehicles such as cle distribution rights in Africa and dealer-
the Hyundai, Renault, Kia, Mitsubishi and ships in the UK and Australia.
Tata brands. The second challenge to the newly minted
Local assembly of these passenger cars division is the lack of economic growth in
offers no economies of scale. Motus will, how- South Africa and, as a result, the demand for
ever, continue to assemble commercial vehicles new cars are low. No new jobs means no new
in South Africa, such as the Hyundai bakkie. vehicle buyers, says Arbee.
Looking to the future, Arbee notes that The third challenge is that any down-
Motus faces three challenges. grade in South Africas sovereign rating will
The first is a volatile, unpredictable rand, probably lead to higher interest rates, which
more so than a weak rand. will negatively affect consumers spending
In order to counter rand movement, Motus power.
AN
NEWS&INSIGHT
NUCLEAR RULING
Kubayi should seize clean
slate nuclear opportunity
TERENCE CREAMER | CREAMER MEDIA EDITOR
H
aving been effectively directed by the
Western Cape High Court to start
with a clean slate when approaching
the controversial issue of nuclear procure-
ment, South Africas new Energy Minister,
Mmamoloko Kubayi, has some big calls to
make.
In the April 26 judgment signed off by jus-
tices Lee Bozalek and Elizabeth Baartman,
acknowledgement is made that it would be
inappropriate for the court to prescribe to the
Minister the form of any procurement process
to be adopted. Nevertheless, the ruling makes
it plain that the nontransparent processes hith-
erto employed for a procurement with such
far-reaching consequences for the South
African public, and the allocation of resources
by government, are neither rational nor lawful.
Not only was the hur r iedly prepa red
revised nuclear determination of December
2016 (which transferred nuclear procure-
ment responsibilities from the Department of
Energy (DoE) to Eskom and the South African
Nuclear Energy Corporation) found to be want-
ing, but so too was the earlier December 2013
determination, which was only gazetted in
December 2015.
In both cases, the concurrence of the
National Energy Regulator of South Africa
(Nersa), in the absence of a public participa-
tion process, was held up to be procedur-
ally unfair.
The judgment notes, too, that, in the 2016
instance which Nersa delivered within three
days of then Energy Minister Tina Joemat-
Petterssons request concurrence was given
despite the fact that two years had elapsed
since the regulator officially concurred with
the 2013 determination. It was also provided
despite continuing misgivings over the 2010
Integrated Resource Plan (IRP), which called
for the building of 9600MW of new nuclear
capacity by 2030 and was in the process of
being updated.
Given the elapse of two years since Nersas
concurrence in the 2013 determination and the
changed format of the determination, most par-
ticularly in its designation of Eskom Holdings
or its subsidiaries as the procurer in respect
of the nuclear programme, it was, in my view
incumbent upon Nersa to afford members of
the public and/or interested and affected per-
sons an opportunity to influence the decision,
Bozalek said.
EG
The ruling was also scathing in its assess-
ment of the content of the 2014 intergovern-
mental agreement (IGA) with Russia as well as
the tabling of the Russian, South Korean and
US IGAs before Parliament. On the content
of the Russian IGA, the judges found that it
could not be considered a routine agreement
with many attributes of a binding deal, while
its tabling before Parliament was declared
unlawful and unconstitutional. The court
also set aside the tabling of the South Korean
and US IGAs, which the applicants described
as mere window dressing to minimise the
impact of the Russian IGA.
The main hammer blow for the current
Eskom-led procurement process flowed natu-
rally from the courts ruling that the 2013 and
2016 determinations were unlawful and uncon-
stitutional. As a consequence, the judgment
set aside any request for proposals (RFP)
or request for information (RFI) issued as a
result of the determinations.
This, no doubt, has consequences for
Eskoms RFI, which closed on April 28, and
for any subsequent RFP, which the utility had
been hoping to issue during the second half of
2017. Eskom says it is studying the judgment
and will, if it deems necessary, comment in
the near future.
However, the ball is now firmly in Kubayis
court and how she responds will have far-reach-
ing effects not only for the credibility of the
DoE and government, but also for the shape
and cost of South Africas electricity supply
industry transition from coal.
Naturally, the Minister has the option to
appeal, which is a likely scenario. Here there
may even be some merit, as clarification is
arguably required on Nersa needing to con-
sult the public when offering concurrence for
a Ministerial determination that is based on
an IRP, drafted after public consultation. In
other words, should Nersa be entertaining
further public consultations on a plan that
has already been canvassed? If so, would the
IRP be adapted after such consultation by the
regulator? Additionally, what would it mean
immediately for the renewable-energy, coal
and gas determinations that have also arisen
directly from the 2010 IRP?
However, that clarity aside, Kubayi can
either approach this judgment as an unaccept-
able intrusion on executive power to be con-
tested on all fronts, or she could use it as an
opportunity for re-engaging with stakeholders
including Earthlife Africa Johannesburg
and the Southern African Faith Communities
Environment Institute, which brought the
application to open a proper debate on
South Africas electricity future.
Surely, the latter would be the better course,
particularly in light of the space created by the
current power glut an ironic situation brought
about by a combination of worryingly weak
demand, higher coal-plant availability and new
renewables and conventional supply.
The logical platform for such re-engagement
is the process already under way to update the
IRP. True, the base case has been tabled and
there has already been a public participation
process. However, there is still an opportunity
to make the updating far more inclusive, more
transparent and more credible.
For one, Kubayi could announce a tem-
porary moratorium on any further procure-
ment processes based on the 2010 IRP until
the update is finalised. Thats not to say that
the 37 renewables projects legally procured
way back in 2015 should be included under
such a freeze; they should not. Indeed, those
power purchase agreements should be signed
and resolution found to Eskoms cost-recovery
anxieties. However, Eskoms nuclear procure-
ment should be halted until the IRP is updated
and that update should take full account
of the public submissions. In addition, any
policy adjustments made to the least-cost
model should not only be made transparent,
but also be justified on the basis of a cost-
benefit analysis.
Additionally, the process of electricity reform
could be broadened beyond the IRP and the
countrys current fixation with generation
technologies. South Africans need to have a
mature, far-sighted conversation on the future
design and operation of the entire system so as
to futureproof it (as best as practically possible)
in the face of the disruption that is already
under way, as well as the disruption that is to
come. How best can South Africa navigate
this transition without allowing slippage on
what some call the Three As of electricity
affordability, accessibility and availability?
Naturally, any restructuring of the domes-
tic industry will take time, particularly given
the political sensitivities associated with such
an overhaul, not to mention the technical and
financial dangers associated with any effort
to transform.
Nevertheless, the debate cannot be held off
forever, with the utility model under threat
in many countries, including South Africa,
and given this countrys particular challenges
around strengthening the transmission grid and
the sustainability of some of its municipal dis-
tributors that are currently failing.
Its not often that a Minister has a clean
slate opportunity. She should grasp it with
both hands.
ENGINEERING NEWS | May 1218, 2017 29
 COMING UP
The Binnenhof complex, located in The Hague,
in the Netherlands home to the Dutch Senate,
the House of Representatives, the Council
of State and the Ministry of General Affairs
requires large-scale renovation to ensure the
safety of employees and visitors to the complex.
The renovation is expected to start in 2020
WAR ON POTHOLES
PROJECT
Name of the Project
War on potholes project.
Location
Johannesburg, Gauteng, South Africa.
Client
Johannesburg Roads Agency (JRA).
Project Description
The JRA is prioritising the repair of failing road
services in the City of Johannesburg.
The 2017 citywide Visual Condition Index
inspection has indicated that 40% of the
citys roads are in very good condition, 15%
in a good condition, 15% in a fair condition,
14% in a poor condition and 15% in a very
poor condition. As of February 2017, 37 450
potholes had been reported to the JRA, of
which 32 740 have been repaired. However,
the time to repair potholes is a concern.
To address the current pothole repair backlog,
the City of Johannesburg has allocated addi-
tional funding to the JRA for 2016/17; a con-
tractor has been appointed to assist in repair-
ing potholes, while additional staff are being
recruited; and pothole repair teams are working
overtime to tackle the backlog, including on
weekends.
Jobs to Be Created
Not stated.
Value
R88-million.
A total of R60-million has been allocated for
materials and equipment for pothole repairs
and other types of road maintenance; and
R28-million to start addressing the 40%
staff capacity shortage in the road maintenance
teams.
Duration
Not stated.
Latest Developments
None stated.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Not stated.
Contact Details for Project Information
JRA operations manager: CRM, Marketing and
Communications Bertha Peters-Scheepers,
tel +27 11 298 5023 or
email bscheepers@jra.org.za.
B
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30 ENGINEERING NEWS |
COMING UP
Turkish company Biokim Rafineri letmeleri
PROJECTSIN
PROGRESS
Sanayi ve Ticaret is planning to build a
commercial-scale biorefinery in the Adana
Free Zone, in Turkey. The production facilities,
including all related utility facilities and
infrastructure, are expected to be operational in
2020
By Sheila Barradas
SAINSHAND SALKHIN
PARK WIND FARM
PROJECT
Name of the Project
Sainshand Salkhin Park Wind Farm project.
Location
The project is located 460 km south-east of
Ulaanbaatar, near Sainshand City, the capital
of Dornogobi province, Mongolia.
Client
Ferrostaal Industrial Projects.
Project Description
The project involves the construction of a
55 MW onshore wind farm, which will have a
yearly output of 190 000 MWh.
The project will prevent the emission of about
210 000 t/y of carbon dioxide.
Jobs to Be Created
Not stated.
Value
The project is valued at about 117.5-million.
Duration
Construction is planned to start this year, with
commissioning of the plant in the second half
of 2018.
Latest Developments
None stated.
Key Contracts and Suppliers
None stated.
On Budget and on Time?
Not stated.
Contact Details for Project Information
Ferrostaal Industrial Projects head of wind
power Holger Boy, tel +49 201 818 28 60 or
fax +49 201 818 35 14.
Sainshan Wind Park, tel +976 11 325867 or
email info@sainshandwindpark.
FEHMARNBELT FIXED
LINK PROJECT
Name of the Project
Fehmarnbelt fixed link project.
Location
The Fehmarnbelt link will be built between
Rdbyhavn on Lolland, in Denmark, and the
German island of Fehmarn.
Client
Femern.
Project Description
The project entails the construction of the
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May 1218, 2017
worlds longest immersed tunnel of its type for
road and rail transport.
The Fehmarnbelt link will be 18 km long and
40 m below sea level.
In contrast to a bored tunnel, an immersed
tunnel comprises hollow concrete elements,
cast on land and assembled section by section
to form the tunnel.
The tunnel will comprise a four-lane motorway
and two electrified rail tracks. It will consist of
79 individual elements, each 217 m long, and
ten special elements with a lower floor for the
tunnel operation and maintenance equipment.
The trench for the tunnel will entail the
excavation of about 19-million cubic metres
of stone and sand from the seabed. This will
be used to establish about 3 k of new natural
areas on Lolland and, to a lesser extent, on
Fehmarn.
Once complete, it will take ten minutes to travel
from Denmark to Germany by car and seven
minutes by train.
Motorists will be able to drive at 110 km/h in
the tunnel. Electric trains will be able to travel
at 200 km/h.
Jobs to Be Created
Up to 3 000 people will be directly employed in
building the Fehmarnbelt tunnel.
Value
The construction budget for the Fehmarnbelt
link is DKr52.6-billion.
The Fehmarnbelt link will be user-financed.
Revenues from the link will repay the loans that
financed construction.
Duration
The project is expected to take about 8.5 years
to complete.
Latest Developments
Arup, in joint venture with Rambll and Tunnel
Engineering Consultants (TEC), will provide
consultancy services and technical support for
the construction of the tunnel.
Key Contracts and Suppliers
Femern Link Contractors (construction of
the immersed tunnel and the tunnel element
factory, and construction of the portal
structures, toll buildings, bridges and ramps);
Dredging International (dredging contract)
COWI (consultant) and Arup (consultancy
services and technical support for the
construction of the tunnel).
On Budget and on Time?
Not stated.
!
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RA
 Contact Details for Project Information Client
Femern, tel +45 33 41 63 00 or Eidsiva Vannkraft.
email info@femern.dk. Project Description
The project involves the construction of a
hydropower plant with an installed capacity of
K-1 SOLAR
85 MW.
PHOTOVOLTAIC PROJECT
It will include about 12 000 m of tunnel
work, construction of the power station and
Name of the Project transformer hall in the mountain, as well as
K-1 solar photovoltaic (PV) project. concrete work around the intake, the power
Location plant area, the outflow and the portal.
Kaduna state, Nigeria. The power plant will use the existing intake
Client dam at the Eidefossen power plant.
The project is a joint venture between Water will travel through tunnels from the
GreenWish Partners and eN Consulting & intake to the new power plant.
Projects. Production from the plant will be about
Project Description 315 GWh/y, equivalent to the electricity
Kaduna state has an electricity access rate consumption of about 15 000 households.
of 37%. Jobs to Be Created
The construction of the solar plant will Not stated.
strengthen northern Nigerias electricity Value
network and improve the electricity access rate NKr657-million.
in the region. Duration
The project involves the construction of a The project will be completed in 2020.
50 MW solar PV plant. Latest Developments
The solar farm will feed the grid with 95 GWh/y None stated.
of clean power and prevent the emission of Key Contracts and Suppliers
354 000 t/y of carbon dioxide. Skanska (construction contract).
Jobs to Be Created On Budget and on Time?
Three-hundred jobs are expected to be created Not stated.
during construction, and 25 permanent jobs will Contact Details for Project Information
be created for the operation and maintenance Eidsiva Vannkraft, tel +47 62 561 000 or
of the plant. fax +47 62 561 400.
Value
Not stated. KAROT HYDROPOWER
Duration PROJECT
Construction is expected to start in the fourth
quarter of 2017, with the project expected to be
completed in 2018. Name of the Project
Latest Developments Karot hydropower project.
The project is at an advanced stage of Location
development, with power purchase agreements The project is located on the Jhelum river, in
and land rights agreements secured. the Punjab region of Pakistan and the countrys
Key Contracts and Suppliers self-governing Azad Kashmir division.
None stated. Client
On Budget and on Time? Karot Power Company.
Not stated. Project Description
Contact Details for Project Information Karot is part of the ChinaPakistan Economic
GreenWish Partners, Corridor initiative and is the first hydropower
email contact@greenwishpartners.com. project being developed in Pakistan by China
eN Consulting & Projects, Three Gorges.
tel +234 9 291 7824/5 or The hydropower project forms part of a five-
email .enafrica@enafrica.com.ng project cascade that will help manage the
vital water resource of the Jhelum river and
NEDRE OTTA provide much-needed generation capacity
HYDROPOWER PLANT to the country. The project is a single-power
PROJECT generation task hydropower complex, with
reservoir storage of 164.5-million cubic metres.
Name of the Project Its installed capacity is 720 MW, with an
Nedre Otta hydropower plant project. average electricity output of 3 436 GWh/y.
Location The project will comprise a 95.5-m-high
The power plant is located in the municipalities asphalt core rock-fill dam, a separate spillway,
of Sel and Vg, in Norway. intake structure, three diversion tunnels, four
ENSafrica.com
headrace tunnels and a surface power house
containing 4 180 MW Francis turbines with a
warranted output of 116.1 MW.
The project includes a new public bridge
across the river and a substantial spillway
structure to manage flood flows.
Jobs to Be Created
Not stated.
Value
The project value is estimated at $1.28-billion.
Duration
The project is expected to be completed
by 2021.
Latest Developments
The project achieved financial close in March.
Key Contracts and Suppliers
Three Gorges Economy Development
Company (engineering and construction
contract), China Machinery & Electric Company
(equipment supply contract) and Mott
MacDonald (lenders technical, environmental
and social adviser).
On Budget and on Time?
Too early to state.
Contact Details for Project Information
Karot Power Company, tel +92 51 8487408 or
fax +92 51 8482222.
KIRENE BEVERAGE
PLANT MODERNISATION
PROJECT
Name of the Project
Kirene beverage plant modernisation project.
Location
The project is located near the village of
Kirene, Senegal, in the subprefecture of Thies.
Client
Societe Industrielle Agro-Alimentaire (Siagro).
Project Description
The modernisation of the Kirene plant includes
equipment for wastewater treatment and
water quality; an enterprise resource planning
system; expansion of warehousing; an
automation programme for product packaging;
and a facilities and infrastructure upgrade.
Jobs to Be Created
Not stated.
Value
The project is estimated 5.6-million.
Duration
Not stated.
Latest Developments
The International Finance Corporation
(IFC) plans to provide loan finance of up to
4.5-million.
Key Contracts and Suppliers
IFC (loan finance).
On Budget and on Time?
Not stated.
Contact Details for Project Information
Siagro, tel +221 33 849 56 66, or
email kirene@orange.sn.

ENSafrica | Africas largest law firm

RA ENGINEERING NEWS | May 1218, 2017 31

 DNIPRO 1 HYDROPOWER Value Contact Details for Project Information
STATION MODERNISATION Not stated. AISD, tel +1 281 449 1011 or
Duration fax +1 281 985 6300.
PROJECT
Start-up of the plant is scheduled for the
Name of the Project second half of 2018. NORTHEAST SUPPLY
Dnipro 1 hydropower station modernisation Latest Developments ENHANCEMENT PROJECT
project. Andritz has received an order from steel
Location producer Nucor to supply turnkey production
Ukraine. lines for the cold-rolling mill complex. Name of the Project
Client Andritz will supply a high-performance push Northeast Supply Enhancement project.
Ukrhydroenergo. pickling line with line speeds of up to Location
Project Description 200 m/min for pickling hot-rolled carbon steel. New York, in the US.
The project entails the complete rehabilitation Its scope of work includes in-house electrics Client
of three Francis turbines and generators, and automation, a multiroll leveller for shape Transco, a wholly owned subsidiary of Williams
including dismantling, supplying, installing and correction and a four-high skin pass mill. Partners.
testing the new equipment. The order also comprises a reduction cold- Project Description
Apart from the embedded parts, all major rolling mill and a temper-rolling mill in four-high The project will create 400 000 dekatherms a
components will be replaced by new design, including reduction mode. day of incremental firm transportation capacity
equipment. Key Contracts and Suppliers to markets in the north-eastern US for the
The modernisation will increase the output of Andritz (production lines). 2019/20 winter heating season.
the hydropower station from 64 MW to 75 MW On Budget and on Time? It will consist of 16 km of 107-cm-diameter
and substantially enhance reliability and safety. Too early to state. pipeline looping facilities, about 5 km of
Jobs to Be Created Contact Details for Project Information onshore 66-cm-diameter looping facilities,
Not stated. Nucor, tel +1 704 366 7000 37 km of offshore 66 cm looping facilities, the
Value fax +1 704 362 4208. addition of 16 332 kW at an existing compres-
Not stated. sor station; a new 23 862 kW compressor
Duration HOUSTON SCHOOLS station; and related appurtenant facilities.
The project is expected to be completed by the PROJECT Jobs to Be Created
end of 2021. Not stated.
Latest Developments Value
Andritz Hydro has been awarded the contract Name of the Project The project is estimated at $926.5-million.
for the modernisation of the Dnipro hydropower Houston schools project. Duration
station. Location The target in-service date for the project is
Key Contracts and Suppliers The schools are to be built in Houston, Texas, December 2019.
Andritz Hydro (hydropower modernisation in the US. Latest Developments
contract). Client Transco has filed an application with the
On Budget and on Time? Aldine Independent School District. Federal Energy Regulatory Commission
Not stated. Project Description for authorisation of its Northeast Supply
Contact Details for Project Information The project entails the construction of two Enhancement project.
Ukrhydroenergo, tel +380 459622006 or schools. Each school, designed for 1 400 Key Contracts and Suppliers
fax +380 459622007. students, will comprise a 21 089 m2 building None stated.
on an 18 ha plot. On Budget and on Time?
HICKMAN COLD ROLLING Facilities will include a cafe, a gymnasium, Not stated.
science labs and playing fields, outdoor and Contact Details for Project Information
MILL COMPLEX
group learning spaces and art and music Williams Partners media, Christopher
rooms, as well as a theatre. Stockton, tel +1 713 215 2010.
Name of the Project The project also includes building roads and
Hickman cold rolling mill complex. parking spaces on campus.
Location Jobs to Be Created Readers of Engineering News are
Hickman, Arkansas, US. Not stated. requested to email details of
Client Value projects to Sheila Barradas at
Nucor Steel Arkansas. The project will cost $94-million to implement. sheila@engineeringnews.co.za
Project Description Duration
The project involves the construction of a new The schools are expected to open in the
650 000 t/y speciality cold rolling mill complex 2018/19 school year.
at Nucors sheet steel mill. Latest Developments
The project will increase Nucors production of Webber, a Ferrovial Agroman subsidiary, has
speciality grades, including third-generation, been selected by Aldine Independent School
advanced high-strength steels, high-strength District to build the two schools. To receive regular updates on these and
low-alloy steels and high-efficiency electrical Key Contracts and Suppliers other projects, subscribe to Creamer
steels. Webber (construction contract).
Jobs to Be Created
Medias Research Channel Africa.
On Budget and on Time?
Not stated. None stated. Email: subscriptions@creamermedia.co.za

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 Agriculture important

NAMPO PREVIEW
for economic growth
Page 40
Nampo Harvest Day
allows company to build
relationships Page 41 Compiled by VICTOR MOOLMAN

Nampo provides ideal platform

to penetrate region
VICTOR MOOLMAN | CREAMER MEDIA REPORTER

BALE MAKER
Agricultural equipment from Vermeer has been
used to create hay bales in the Free State

W
ith aspirations to start distribu
tion of its agriculture products
across subSaharan Africa,
Industrial equipment supplier Vermeer
believes the Nampo Harvest Day is an
ideal platform to promote its products to
the market.
The show easily attracts over 60000
visitors, and among these will be many
potential customers for our products. With
a fittomarket product and lucrative retail
specials, we envision generating equipment
sales and product inquiries which we can
follow up on immediately after the show,
says Vermeer equipment supplier MD
Frank Beerthuis.
He highlights that at the Vermeer stand,
the Rancher 6640 Baler, BPX9000 Bale
Processor, 604N Cornstalk Special Baler,
TM800 Rebel Trailed Mower, R2300Twin
Rake and the VR1022 Carted Wheel Rake,
will be on show.
The Vermeer VRseries Carted Wheel
Rakes feature a number of Vermeer inno
vations the VR1022 is easy to operate
and built for highvolume raking.
The Vermeer Rancher 6640 is designed
to produce a large amount of bales, the
Vermeer TMSeries Trailed Mowers can
hitch up easily and are easy to operate and
the Vermeer 604N and 605N Cornstalk
Special Balers are equipped to bale their
To page 36

34 ENGINEERING NEWS | May 1218, 2017 EG

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From page 34 In the upcoming years, it will be our

way through even the toughest crop
quickly and efficiently, Beerthuis explains.
He notes that a vast majority of the
equipment has being distributed on the
US domestic market; however, in recent
years, Vermeer being an international
company, has expanded its distribution
into Latin America, China and sub
Saharan Africa.
Farming practices and climate condi
tions in Southern Africa are comparable
with markets that Vermeer has distributed
in, he says, adding that the company has
tested the equipment line that will be on
show at Nampo for suitability for the sub
Saharan Africa market.
He explains that to start off its African
presence, Vermeer will distribute the
equipment from its South African head
quarters, in Johannesburg, where it has a
large spare parts depot, workshop facili
ties, and an existing and wellfunctioning
logistics hub from where the company
has been distributing Vermeers industrial
products.
I have never understood why women love cats. Cats are independent, they dont listen, they dont come
in when you call, they like to stay out all night, and when theyre home they like to be left alone and
sleep. In other words, every quality that women hate in a man they love in a cat.
aim to distribute through a network of
local agriculture equipment dealers in
other subSaharan African countries
to have touch points closer to our end
customers.
In either case, our equipment will be
strongly backed from our Johannesburg
based headquarters, with originalequip
ment manufacturer support from the US,
Beerthuis explains.
To date, the company has already seen
interest from existing clients in the new
products, with a number of special heavy NEW MARKET
duty round balers running in cornstalk The sub-Saharan Africa agriculture market is a
applications in the Free State. new market that Vermeer is eager to impress
He says the balers are producing bales
of up to 1.80 m diameter and are equipped have also received the first inquiries for
with special features to enable powerful haymaking equipment, such as mowers,
and productive baling of tougher materials mowerconditioners, rakes and balers for
such as cornstalk, sugar cane residuals and hay and silage, explains Beerthuis.
biomass. He concludes by mentioning that farmers
Our customers have already baled will be able to order new machines from
over 10 000 bales per season with these Vermeer at the show.
machines on their farms. With larger The company has also prepared a
marketing activities commencing, we number of Nampo specials that will attract
customers to place orders for equipment
such as the Ultra Heavy Duty Netwrap
during the show, which takes place from
May 16 to 19, in the Free State.
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NAMPO PREVIEW
Agriculture important
for economic growth
VICTOR MOOLMAN | CREAMER MEDIA REPORTER
T
he continued growth of agricultural
exhibition Nampo Harvest Day, in the
Free State, reflects the importance
of agriculture to the economic growth of
South Africa, says equipment supplier Smith
Power Equipment (SPE) Polaris and Linhai
product range national sales manager Mark
Chittenden.
Having attended the show for the past 16
years, he notes that every year SPE show
cases new products in order to reach a
broader customer base. This year, we will
be relaunching the Linhai range, as some
of the products have been revised. We will
also have new models on our Polaris stand,
as well as a new tractor from equipment
manufacturer Kubota and the 8 t KX0803
Kubota excavator.
SPE marketing manager Robert Keir
explains that the Nampo Harvest Day show
brings the agricultural industry which
includes importers, dealers and customers
to one place. The show offers an array of
products and insights for farmers to make
the best informed investments for their
operations.
Weve identified agriculture as a key
market for SPE, since every farmer needs the
right tools to do their work effectively and,
GO FIGURE
16
The period in years for which Smith
Power Equipment has been attending
the Nampo Harvest Day show
KUBOTA
Kubota machines will be exhibited at the Smith Power Equipment stand
40 ENGINEERING NEWS | May 1218, 2017
At the Polaris stand, there will be two
new vehicles launched as well, the Polaris
Ranger 570 and the Polaris Ranger 570 Crew.
Industry Challenges
Chittenden points out that the most successful
year that SPE has had was in 2015, before the
market slowed down as a result of the drought
that hit South Africa last year.
The drought last year made trading
conditions very challenging and, as an
industry, we have lost momentum, he says.
However, Keir explains that SPE is positive
about the outcomes this year, as the company
has already observed some positive trends in
the market: the rand is strengthening slightly
and customers of the company are spending
more strategically than before.
Even though we see disparate weather
patterns and rainfall in different provinces,
Pictures by Senior Chief Photographer Duane Daws
with the Western Cape still navigating a
bad drought, it is encouraging that we have
had good rains in the northern regions, he
notes.
Creative financial offerings such as off
balancesheet funding are important in this
climate. With SPE having been accredited at
all banking institutions in South Africa, the
MARK CHITTENDEN company can make deals that are aimed at
This year's industry outlook is showing more assisting its clients. He points out that such
growth than last year an approach to asset finance comes with
benefits to the farmer, such as not having to
from a financial perspective, mechanisation lay out any initial capital, which helps with
is vital in running a farm more efficiently, essential cash flow.
he says. Further, lease payments on the equipment
Keir points out that Nampo Harvest Day are fully tax deductible and VAT refunds are
is the ideal event at which to launch new paid on a monthly basis. Tailormade finance
products onto the agricultural sector market. like this can mean the difference between the
New products from SPE, like the Kubota disappearance and survival of the farmer,
compact excavator KX0803S, which was Keir explains.
launched this year, boost mechanisation Some of the topics being discussed at
of agriculture in South Africa and fuel the show, such as greater agricultural
competition in the market. mechanisation, the impact of emissions on
Chittenden explains that the relaunching the environment, productbuyer connections
of Linhai allterrain vehicles, such as the 300 and financial solutions in the sector are
and 400 4 4 models, will fill the stand, of interest to SPE, he says. The company
while the dieselpowered Linhai 800 side specialists will participate in key discussions
byside with bench seat and steel bin will be on these matters.
demonstrated at the new agricultural track. Chittenden concludes that, because the
Nampo Harvest Day show is an agricultural
show, SPE will be focusing on the Kubota
tractors, with the other company brands
being there to support a full product lineup.
T h is yea r has st a r te d of f look i ng
promising and we believe it will be better
than last year.
ENGINEERING NEWS COUPON ON PAGE 82 E450671
The reason people find it hard to be happy
is that they always see the past better than
it was, the present worse than it is, and the
future less resolved than it will be.
RA
NAMPO PREVIEW

Nampo Harvest Day GO FIGURE

75 000
allows company to Total visitors at the Nampo show last
year

build relationships With over 75 000 visitors setting a new

attendance record at Nampo last year,
BI business unit head Ross Trevelyan
says the show is an ideal place to also
VICTOR MOOLMAN | CREAMER MEDIA REPORTER educate its customers on the benefits and

O
advantages of standardising its extensive
wing to the agriculture market what we have, understanding some of the product range.
becoming more technologically needs that may not be met and finding We are far more than a product supplier
advanced, bearings supplier solutions for these needs, he explains. To page 50
Bearings International (BI) says attending
the Nampo Harvest Day will allow
the company to build the necessary
relationships within the sector.
[Economic] growth is important, but, FULL RANGE OF DEWATERING
[that said], so too are the relationships and
meeting customers that Nampo offers. At
AND DREDGING RENTAL SOLUTIONS
BI, we believe in customer relationships Extensive fleet available at short notice
and Nampo is an ideal way to meet with supported by an experienced technical team
all our clients in a relaxed environment to
discuss some of the challenges faced and
offer solutions to these challenges, says BI
CEO Burtie Roberts.
As a result, he notes that BI will show
case the product offerings that support the
agriculture industry at its stand in Nampo
Hall 45 and 46, from belts for vehicles,
transmission products for motors and
chains for drives to bearings, couplings,
electric motors, tools and many other
products.
Roberts says that BI also provides advice
on keeping farming equipment operating at
optimum efficiency, in addition to outlining
the most proactive maintenance procedures
to increase the life span of equipment.
We show what the industry uses and

CM 270117CG
needs; as we see demand change and new
products become available, we offer these
to the market. The show is about offering

Integrated Pump Rental

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Cell: +27 (0) 72 627 6350
ADVANCED TECHNOLOGY
Bearings International will be showcasing
some of the advanced technology that it has
available at the Nampo Harvest Day show
www.pumprental.co.za

RA ENGINEERING NEWS | May 1218, 2017 41

 QUALITY AGRICULT

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URAL COMPONENTS.

Visit us at Nampo 2017

Santam Hall, Stand 15 & 16
NAMPO PREVIEW

Revamped stand to
encourage positive
customer experience
I
ndustrial gases company African Oxygen,
better known as Afrox, will be featuring
a revamped stand at the Nampo Harvest
Day show, from May 16 to 19, in the Free
State, to enable its agricultural customers to
view and experience welding machines and
equipment in a suitable environment.
The company explains that the theme of
the stand will convey its desire to be the
preferred supplier of choice, allowing Afrox
to demonstrate a range of welding machines,
consumables, gases and support services
on offer.
My son asked me what its like to be married,
so I told him to leave me alone, and when he
did, I asked him why he was ignoring me.
The stand will feature familiar and popular
elements from previous years, such as live
demonstrations, daily specials, welding
workshop bays and product displays, as well
as the Handigas mascot which made its first
appearance at the Nampo Harvest Day show
last year making it easy to spot.
The new Afrox industrial metal arc
welding (MMA) 221S is a robust machine
that features a digital display with arc force
and hot start capabilities and will be on TIG WELDER
Customers will be able to use some of the
special throughout the duration of Nampo welding equipment from Afrox at the show
2017, says Afrox arc equipment product
manager Dewald Bodenstein. Other newly
launched models will also being on display machines, which include two new MMA
and available for purchase. models, three new metal inert gas (MIG)
He highlights that the Afrox stand will welding models with multiprocess capabilities
include new Afrox industrial welding as standard and two new tungsten inert gas

Serving the needs of the agricultural

sector for over 80 years
Afrox has served the needs of the agricultural
sector for more than 80 years. Our offer serves
the farming community with the very latest
cutting, heating and welding equipment and
consumables, as well as tailor-made gas
solutions and technical support services.
Our product range includes:
Agrigas: oxygen, acetylene and
Argoshield 5
Industrial gas: nitrogen and a variety of
shielding gases
Speciality gases: Ripe Gas
Liquid Petroleum Gas (LPG): Handigas
and bulk
Welding, cutting and heating solutions
Porta range of cylinders including PortaPak
Personal Protective Equipment (PPE).
Afrox products are available in a wide range
of practical packaging options and sizes.
All our products conform to the highest
standards: SABS/ISO/SANS or Afrox
corporate specifications where relevant.
For customers requiring gas installations,
our dedicated team is able to provide safe,
reliable and affordable on-site solutions.
Afrox offers a delivery service to co-
operatives, and to approved customer-
specific site delivery points. Alternatively,
an extensive range of products is available
from more than 60 retail outlets nationally.
Shop online at www.afroxshop.co.za or visit
www.afrox.com for product information and
safety recommendations, alternatively you
can call our Customer Service Centre on
0860 020202.

African Innovation. German Precision.

Customer Service Centre: 0860 020202 Email: customer.service@afrox.linde.com www.afrox.com

44 ENGINEERING NEWS | May 1218, 2017 RA

NAMPO PREVIEW

(TIG) welding models. Weld i ng professiona ls wi l l

Along with the launch of the new demonstrate processes, such as hard
welding machines, there will be a facing for farming applications, and
competition that will see a lucky visitors to the stand will have the
customer of Afrox winning one of opportunity for hands-on interaction
the newly launched Afrox industrial with the welding machines and
MMA 221S welding machines every equipment that Afrox has available.
day. The winners full prize will
include an Afrox Transarc OHE 410 Lasting Business
auto-darkening helmet and a 5 kg Bodenstein explains that Afrox is
pack of Vitemax 3.15 mm welding celebrating 90 years of business
rods. He explains that the value of in sub-Saharan Africa, supplying
the daily prize package is R20 000. gas, welding consumables and
To make buying equipment from equipment.
Afrox easier, this year, a pay and AFROX OPERATIONS This will include Vitemax,
collect service will be introduced. Afrox supplies gas, welding consumables and equipmnent Afroxs leading premium electrode
He points out that, with the pay-and- across sub-Saharan Africa for mild steel applications; a range
collect option, Afrox customers can of liquefied petroleum gas products
take advantage of the discounted prices on with complete agricultural welding and that can be used in the agriculture sector,
welding machines and other equipment on cutting solutions, so, along with offering including the Handipack a compact gas
promotion and then collect them from their them products they can trust, we also aim to cylinder and cooker combo, as well as the two
nearest Afrox branch at their convenience. support all their agricultural needs, he says. plate stove and the ARCmate range a suite
Afrox is dedicated to providing farmers Bodenstein explains that, to showcase of lightweight and portable products aimed
Afroxs versatility, the stand will include at the DIY sector, he explains.
GO FIGURE a large welding workshop where welding Bodenstein points out that the PortaPak
processes will be showcased th rough welding and cutting set will also be on display
90 interactive projects. at the show, as well as the Agrigas and Porta
Two live demonstration bays will be in range of gas cylinders.
operation one dedicated to plasma and gas The PortaPak allows work to be performed
The period in years that Afrox has been equipment and the other to MMA, TIG and at remote locations and in elevated areas.
in sub-Saharan Africa MIG welding. ENGINEERING NEWS COUPON ON PAGE 82 E450643

RELIABLE ENERGY
3
4
5
6 SOLUTION
for the entire
2

7
agricultural sector.
8 1 Diesel Generator Set
1 2 WWash Motor
3 Invicta Vibrator Motors
9
4 Indoor Customisable Control Panels
5 Overhead Lines
6 Transformers
14 10
7 All Weather Outdoor Control Panels
13
8 Pole Mount Transformers
12
9 Premium Efficiency Motors
11
10 Variable Speed Drives
Zest WEG Group has been servicing the agricultural sector for more than 35 years with
its range of robustly engineered products. 11 Soft Starters
12 Direct Online Starters (DOL)
WEG products, designed using modern technology, offer farmers optimum reliability
coupled with excellent energy efficiency. From WEG Premium Efficiency electric motors 13 Motor Protective LV Switchgear
to WWash electric motors with WEG Variable Speed Drives, all have developed a 14 Pushbuttons and Pilot lights
reputation for solid performance in the most demanding conditions. Low maintenance
requirements as well as ease of serviceability allow reduced total cost of ownership to
the agricultural sector.

As a market leader, Zest WEG Group offers access through WEG Brazil, to international
best practice in electrical solutions for the agricultural sector. The Zest WEG Group
operates a strategically situated network of branches and distributors to ensure
optimum availability of product and parts. Tel: +27 11 723 6000 www.zestweg.com

RA ENGINEERING NEWS | May 1218, 2017 45

NAMPO PREVIEW

KIRLOSKAR BROTHERS INTERNATIONAL (PTY) LTD

Robust pump
delivers water
on dry days
P
Creamer Media 120517CG
umps manufacturer
Franklin Electric has
developed a rugged,
high-output solar-powered
pumping system which solves
the challenges presented by
Kirloskar Brothers International is a market leader in the design and harsh and remote environments,
manufacture of centrifugal pumps and engineered pumping providing pumping power on
solutions for over 130 years. dry days when water is needed
most.
Contact us for more information:
Franklin Electric South
Tel: +27(0)11 393 7177/9 E: sales@spppumps.co.za
www.spppumps.com E: sales@braybarpumps.co.za
Africa (SA) application
www.kirloskarpumps.com engineering manager Lyon
Our Companies: van der Merwe explains that
the Fhoton SolarPAK is unique
in its use of standard borehole
equipment that is backed up by
Sometimes your joy is the source
of your smile, but sometimes your
smile can be the source of your joy.
access to industry logistics and
support.
He explains that the Fhoton
SolarPAK is modular and com-
pact and was jointly developed
by Franklin Electric USA and
Franklin Electric SA offering
a versatile, all-in-one system
solution for all solar pumping
requirements.
The Fhoton SolarPAK is
based on conventional borehole
technology and includes
submersible motors that, he
points out, operate at variable
speeds that provide quiet,
pollution-free, corrosion-free
and self-lubricating water
pumping solutions.
We are bringing dependable,
standard borehole equipment
to the solar market for the first

GOLD
Picture by Senior Chief Photographer Duane Daws

This feature will provide an overview of the gold sector in South

Africa, as well as in the rest of Africa, focusing on factors
influencing the state of the gold market and the price of gold.

Advertising booking deadline 13 June 2017

To book advertising in this feature, please contact Reinette Classen on

+27 11 622 3744 or email: advertising@creamermedia.co.za
NAMPO SHOW
Franklin Electric will have several pumping systems on show at the
Nampo Harvest Day show

46 ENGINEERING NEWS | May 1218, 2017 EG

NAMPO PREVIEW
time in South Africa, giving
our customers access to solar
pumping systems with the same
consistency as conventional
borehole equipment, he says.
Van Der Merwe explains
that the Fhoton SolarPAK is
also economical in the long run
with many of the smaller sized
systems costing little more than
the fuel-powered equivalents.
The solar pumping system
decreases future costs and cost
uncertainties as the fuel is free
and the pump element, which
can be removed and replaced
alone, is the only wearing part,
with little or no maintenance
required.
With a solar pumping
system, there is a significant
reduction of cost of ownership
and customers are assured of
many years of reliable water
supply at near-zero operating
cost.
The investment payback
period for Franklin Electrics
Fhoton SolarPAK is 12 to
24months, allowing customers
to quickly realise the benefits of
a solar-powered water pumping
system, he points out.
Van der Merwe explains that
the advantages of the Fhoton
SolarPAK include not being
reliant on fuel or electricity;
being expandable; extremely
efficiency, meaning pumps
can be used in marginal wells,
pushing water through pipelines
that may be several kilometres
long; being constructed of high-
quality materials and designed
for corrosion resistance and
maintenance-free service even
in harsh environments; and
offering long-term performance
and reliability.
The Fhoton SolarPAK
is suitable for a variety of
applications from livestock
watering to rural water supply
and renewable-energy projects,
and can be designed for small-,
medium- and large-scale water
requirements. Typical flow
ranges begin at 1000 /d and
from depths of 5m to 120m
for small systems, to large-
scale flow systems that can
reach in excess of 185000 /d
and achieve depths of up to
EG
Industrial strike
action. Lost time
due to rain.
Source: Bloomberg
SOLAR POWER
Project delivered
6 months ahead
The SolarPAK uses solar power
to transport water over long
distances
300m, he elaborates. Small-
scale systems use highly
of schedule.
efficient, standard alter nating
current motors and progressing
cavity pumps, while medium-
scale systems use multistage,
centrifugal submersible pumps
powered by high efficiency
permanent magnet motors.
Van der Merwe says the large-
scale systems are driven by an Impossible?
Not for DRA.
array of high powered modules,
ensuring reliability and an
expected lifetime in excess of
20 to 25years.
Power from the solar array
is fed into a high-quality
electronic inverter which
converts direct current into
three-phase variable frequency
output, he says.
Franklin Electric is a
manufacturer of high-quality
pumping solutions, with an
extensive branch and distri- In one year, DRA delivered 6 platinum concentrators to
bution network of authorised various clients in Africa, resulting in a total processing
service providers across Africa capacity of 670 Ktpm. As one of the industrys leading
and the world, offering a range concentrator and mining experts, DRA can proudly attest
of support facilities to its to satisfied clients in all areas of the platinum industry.
customers. Its just another way DRA delivers through
Van der Merwe concludes all circumstances.
that the solar-powered pumps
will be available for purchase
DRAglobal.com
at the Nampo Harvest Day
show, in the Free State, at
Stand25 from May 16 to 19,
at a one-off promotional offer
for the duration of the show.
There will be prizes for
visitors to the stand, with a
grand prize of a complete solar
powered pumping system,
including a 250 Wp solar Extraordinary Possibilities
panel.
ENGINEERING NEWS COUPON ON PAGE 82 E450660
ENGINEERING NEWS | May 1218, 2017 47
NAMPO PREVIEW

New block-making whos who of the sector and a platform for

networking not only within this industry, but
also with the many other businesses that are

business trailer at Nampo

critical to its success.
The products and innovations on display
at the show are of a high quality, says

Harvest Day show

Hydraform sales and marketing director
Nazlie Dickson.
The show facilitates the demonstration
of all the latest technologies available to
the sector, not only to grow the market, but
also to play a part in facilitating the constant
VICTOR MOOLMAN | CREAMER MEDIA REPORTER
improvement of the quality of produce.

B
Nampo is an ideal platform for suppliers
lock-making machine manu- and manufacturers to access invalu-
facturer Hydrafor m will able direct market input from a
be launching the new M9 customer base and vice versa, and,
business-on-a-trailer block-making with the shows new international
machine at the Nampo Harvest Day pavilion, the enterprise is growing
show to be held from May 16 to 19 its international visitor and exhibitor
in the Free State. base tremendously, she explains.
Hydraform marketing coordinator The drought has also inspired
Ryno Saayman explains that. while farmers to seek supporting oppor-
the machine is electrically powered, tunities and enterprises that can be
the trailer includes a generator that sustained on their farms.
not only powers the machine but This creates the perfect oppor-
also all ones building needs. It also tunity for block making using the
has several extra components that farmers nonarable soil and the farm
can be added to enable farmers and labour available.
small businesses to complete work BLOCK-MAKING TRAILER The M9 concept lessens the load
on their farms or add new industry The M9 trailer is a combination of machines that can be used to
easily create blocks for construction projects
on farmers to acquire a large amount
to their operations. of water to facilitate building new
The concept behind the business- structures.
on-a-trailer is that it serves two purposes as other Hydraform machines: once it has H e r e it e r a t e s t h a t t h e Hyd r a fo r m
the block-making business on a dismountable reached the location where the construction t e c h n o l o g y o n l y r e q u i r e s a s m a l l
skid, as well as a standalone trailer for loading is taking place, interlocking blocks can be amount of water to create several thousand
and transporting other materials and items manufactured using only a mixture of 10% blocks.
that affect ones business or operation. cement, water and soil from the surrounding Un for t u nately, water wi l l st i l l be
Saayman explains further that the block- area, using the M9 trailer-based block-making playing a part in the construction process,
making machine follows the same principle machine. but you will end up using less water,
Hydraform has been developing the Saayman says.
Hydraform interlocking building system for He adds that farmers prefer the hands-on
29 years, with the M9 trailer-based machine approach to building and maintaining the
being the latest innovation. equipment and structures that they have.
The Nampo Harvest Day festival has been Dickson explains that Hydraform has a
chosen as the launch platform for the new long and successful relationship with the
M9 concept, because of the opportunity this agriculture community.
represents for our farming clientele, He explains that, by nature, successful
Farmers can use the M9 business on a farmers are innovators whose survival
trailer block-making machine and take it to depends on finding solutions to day-to-
wherever it is required to build new buildings, day challenges, which makes Hydraform
add to a building or to improve already technology an ideal companion for them.
existing structures, Saayman highlights. Saayman adds that Hydraform will be at
GREAT OPPORTUNITY He explains that, during the slowdown in Stand 65c, where the M9 machine will be
Farmers can use the M9 business-on-a-trailer
block-making machine and take it wherever
farming operations, farmers choose to focus used to create blocks throughout the Nampo
it is required to build new buildings, add to on the maintenance of existing structures, Harvest Day show.
a building or to improve already existing and building storage facilities and housing We are proud to be associated with the
structures He points out that the Nampo Harvest Nampo event for so long and are grateful
Day show is the largest agricultural show in to the growing enterprise for its support in
the southern hemisphere and it is attended connecting the agriculture industry with the
I thought I was just really tired, but its by the agriculture community from across tools it needs not only to survive but also to
been five years, so I guess this is how I
look now.
Africa. thrive, Dickson concludes.
It offers exhibitors direct access to the ENGINEERING NEWS COUPON ON PAGE 82 E450771

48 ENGINEERING NEWS | May 1218, 2017 RA

NAMPO PREVIEW

From page 49 customers, the company sup

says. Herbst explains that there
is a direct correlation between
profitability and production.
When it comes to crop farm
ing, for example, farmers have a
limited window period for plant
ing and harvesting, so costly
breakdowns in the field are
simply not an option.
Our automated lubrication
systems, which include single
nipple greasing, as well as fully
monitored systems, deliver
fast, accurate greasing for opti
mum equipment reliability.
When greasing the machine
during planned maintenance,
some points are often missed
while others are either over
or underlubricated, leading
to equipment downtime, he
adds, noting that over or under
lubricated parts not only waste
valuable time but also compro
mise equipment reliability.
Source: Bloomberg
SPREADER NIPPLE
The grease distribution systems from Lincoln Lubrication use one or
more nipples to spread lubrication equally across a system
We recommended the single
nipple greasing system as the
best solution. Using distribu
tion blocks, we route all greas
ing points to one grease nipple,
which enables lubrication of all
points from one greasing point,
eliminating the risk of missing
any greasing points for complete
peace of mind. In addition, the
system also offers substantial
time saving, explains Herbst.
He adds that longterm cus
tomer relationships are of the
utmost importance for both par
ties. Building partnerships with
ports products that come with
parts supply, advice and training.
Our highly skilled technical
team delivers specialist mainte
nance and aftersales services.
As part of our customer service,
we pay regular visits to our cus
tomers to ensure that our sys
tems are in good working order,
Herbst says.
Lincoln Lubrications agricul
tural offering is available from
SKFs extensive agri distribu
tion network. Product knowledge
is important, so we are spend
ing time with distributors and
endusers, sharing product infor
mation and training. We have
completed a number of Muster II
fire suppression demos in the
Free State, which we plan to roll
out across the country together
with our successful crop spray
system, he concludes.
ENGINEERING NEWS COUPON ON PAGE 82 E450667

From page 41
we also focus on offering our customers
BI also provides advice
in the agriculture community a total on keeping farming
solution for their specific needs, explains
Trevelyan. Further, he explains that the
equipment operating at
agriculture sector is under increasing optimum efficiency
pressure to cut costs and improve BURTIE ROBERTS
productivity, owing to the recent drought
and the changing political climate. BI has
made its product line available to help
its customers reduce their downtime and
boost productivity. bearings and shaftmountedgearbox
On display at the BI stand at the Nampo supplier Dodge, power tool manufacturer
Harvest Day show are products from Makita, hand cleaner and degreaser
manufacturer Citronol, electric motor
manufacturer Bauer and bearings and
When the wealth is lost, nothing is lost. transmission components manufacturer DODGE GEARBOX
When the health is lost, something is lost.
Mental peace leads to good health. KML. Bearings International will be showcasing
ENGINEERING NEWS COUPON ON PAGE 82 E450648 some of Dodges gearbox offerings

50 ENGINEERING NEWS | May 1218, 2017 RA

COMPANYPROFILE
VescoPlastics
South Afric a - based self- lubric ated bearings manufacturer
VescoPlastics will be able to machine custom components faster and
easier, owing to the introduction of a new 5-axis computer numerically
controlled (CNC) machining centre at its factory in Virginia, Free State.
The state-of-the-art Haas VF-11 machining centre has a 3 000 mm
travel, and allows the cutting tool to move across the X,Y and Z linear
axes and the workpiece to tilt and to rotate in any direction.
Among the many applications that it may be used on is in the
machining of daggerboard casings for high-technology sailing boats
that are used as an alternative to fixed keels on catamarans, for
performance boat builders. Other complicated machining jobs can
also be carried out.
The machining centre will allow us to complete complex projects
quickly and accurately, says VescoPlastics chairperson Dr Jean-
Patrick Leger.
He notes that it will also save manufacturing time because
components do not need to be transferred between machines for
MM
finishing. VescoPlastics produces its proprietary brands of Vesconite
and Vesconite Hilube bushings and wear plates that operate in dusty,
dirty or wet conditions and still last longer than other products on
the market.
The company also provides extensive machining services and has
the largest machine shop in the Free State, with 60 CNC lathes and
machining centres, and numerous large conventional lathes that are
capable of machining bushings up to 3 000 mm in diameter.
VescoPlastics has warehouses in Johannesburg, the US, the
UK, the Netherlands and New Zealand, with stocking distributors in
Argentina, Australia and Singapore.
Legers SABS-approved and ISO 9001-accredited company boasts
a staff of 71, of which 25 are employed in the sales and administration
divisions, with 46 in manufacturing.
The company also focuses significantly on training and skills
development, and is currently mentoring 30 young people as part of
its learnership and apprenticeship programmes.
VescoPlastics boasts customers in more than 100 countries, exports
over half of its total sales, and dispatches large orders regularly to
the US, China, South America and Australasia.
ENGINEERING NEWS | May 1218, 2017 51
 New audit service
to support concrete
product manufacturer
Page 56
Cement and concrete affected by
faltering construction industry
Source: Bloomberg
T
he construction industry in South
Africa which is tied directly to the
state of cement and concrete is stut
tering, but there is scope to improve, says
chemicals solutions provider Chryso Southern
Africa CEO Norman Seymore.
It has been widely reported that the con
struction industry has not been doing well
for several years, he tells Engineering News.
Seymore explains that the reliance of
cement and concrete on a thriving construc
tion industry, which, in turn, is reliant on
infrastructure projects means the condition
and progress of the construction industry is
directly proportional to the number of such
GARNETT CROSS HYDRAULIC COURSES
We do not sell or repair Hydraulic equipment, neither are we affiliated to any such company.
Accredited by the S.A. Institute of Mechanical Engineers, mandated by the Engineering Council
of South Africa, in respect of Continuing Professional Development.
52 ENGINEERING NEWS | May 1218, 2017
CEMENT
& CONCRETE
TASNEEM BULBULIA | CREAMER MEDIA REPORTER
projects that are implemented.
He is concerned over a lack of major infra
structure projects in South Africa recently,
with the last two notable constructions being
Stateowned power utility Eskoms Medupi
and Kusile power stations, both of which
have been completed from a construction
point of view.
This leaves only road infrastructure pro
jects constituting major infrastructure pro
jects in the country. This abatement negatively
impacts on the construction industry, thereby
affecting cement and concrete.
Further, Seymore points to governments
National Development Plan implemented
Serving industry since 1974
Compiled by TASNEEM BULBULIA
NOTHING CONCRETE
A lack of major infrastructure projects in
South Africa is negatively affecting the
construction industry, thereby hindering
the state of cement and concrete
on February 19, 2013, which aims to elimi
nate poverty and reduce inequality by 2030
as being behind schedule according to con
tained forecasts.
To mitigate this situation and facilitate
growth, Chryso has been expanding its terri
tories by developing into subSaharan Africa.
However, Seymore says there is scope
for South Africas construction industry to
improve, as there is a need for infrastruc
ture development.
While there are no major infrastructure
projects on the cards, he concedes that there
are pockets of good performance. These
To page 54
Tel: Dee Kruger at (011) 453 8063
Email: garnett@cross.co.za
Web: www.garnettcross.co.za
Creamer Medias 181111MF
EG
CEMENT & CONCRETE

From page 52
infrastructure projects are very localised,
however; for example, in Sandton, where
passersby might be under the impression
that there is a construction boom, this is not
the case rather, there is isolated growth in
the area.

Picture by Senior Chief Photographer Duane Daws

T he sa me appl ies to Um h la nga , i n
KwaZuluNatal, where several highrise
residential buildings are currently under con
struction. The provinces apparently good
levels of activity are also supplemented by
a number of road infrastructure projects
under way.
He cites that good market conditions
in the Western Cape are facilitating projects. LOCALISED
However, this is mostly through private Several areas in South Africa represent pockets of good performance for infrastructure projects
investment, on which the construction indus
try is overreliant, Seymore says. prices, but reassures that there is reason to be to this issue. He is hopeful that the cycle will
He indicates that it is not only South positive, with development work becoming change this year. The construction industry
Africas construction industry that is suffer available as the commodity markets recover. in South Africa is very advanced in terms of
ing, as the entire African market has been Seymore posits that the refugee crisis, construction methods, materials and prac
depressed by commodities and exports fal which is still prevalent in Europe, has unin tices, and Chryso is on hand to support the
tering, and revenues shrinking, in the global tended consequences as farreaching as the industry and ensure that it remains competi
economy. construction industry, owing to international tive, he adds.
He cites Angola as an example, which aid money, which historically had funded We, as a South African industry, need to
has been heavily affected by the drop in oil many projects in Africa, now being diverted support one another to keep the expertise in
South Africa and remain exceptionally com
petitive, and keep working on big projects,
Within you right now is the power to do things you never dreamed possible. This power becomes
available to you just as soon as you can change your beliefs.
he concludes.
ENGINEERING NEWS COUPON ON PAGE 82 E450016

WE OPERATE COUNTRYWIDE
IN ALL SECTORS OF THE INDUSTRY

Industry Q Occupational Health Services offers comprehensive Occupational

Health services to contractors, companies and individuals which includes:
Pre-employment Certification Occupational Hygiene
Periodic Medical Examinations Wellness programme
Exit Medical Certificates Mobile Unit
Health Risk Assessments And many more

Shop 21B Marapong Spar Complex

Contact us - Tel: (014) 768 2003 or 083 271 0745 Email: info@industryqohs.co.za
www.industryqohs.co.za Creamer Media 120517CG

54 ENGINEERING NEWS | May 1218, 2017 EG

CEMENT & CONCRETE

New audit service to

support concrete
product manufacturers
TASNEEM BULBULIA | CREAMER MEDIA REPORTER

C
ement a nd const r uc new Efficiency Audit service Infrastructure projects are
tion materials supplier offering. necessary for CPMs to sell their
A f r i S a m i s p r ov i d AfriSam national sales man products, and this downturn has
ing additional support for its ager Amit Dawneerangen says increased pressure, necessitating
Concrete Product Manufacturers there has been a downturn in [the consideration of] operational
(CPMs) customers through its infrastructure projects locally. efficiencies to reduce costs.
This has subsequently been
the catalyst for AfriSam's new
offering, which was implemented
weishaupt at the beginning of this year as
extra support for customers to
(South Africa) (Pty) Ltd ensure that they remain profita
ble, he notes.
Weishaupt WM 20 monarch Burners The support is also a new
Advantages: feature of AfriSams Centre
Easy fuel changeover between gas and oil on dual fuel burners of Product Excellence facil
Digital combustion manager with electronic compound ity, in Roodepoort, Gauteng.
regulation at all ratings Dawneerangen explains that a
Sound attenuated air inlet as standard for quieter operation team of technical experts are dis
All WM 20 burners are delivered with a mixing head preset for the patched to a customers manufac
required output of the burner turing operation to conduct an
Computer controlled function tested at factory
audit on the process taking place.
Digital combustion manager Burner housing This provides a fresh set of
hinge
with control and display unit
eyes, as people working at the
same operation daily become
Electronic ignition unit
accustomed to it and might miss
opportunities for improvement.
This team covers the entire
process, from the starting point
of constituent material selection
to the finished concrete product.
Stepping motor for The company has produced,
gas butterfly valve
through its experience, a checklist
of items to identify areas of
improvement in the facility, he
adds.
Once this has been con
Stepping motor for
air damper control ducted, the management team
Certification is briefed regarding the results,
The burners are tested by an independant body and conform to the even in the case where opera
following standards and EU directives: tional efficiency is at its optimum,
EN 267 and EN 676 (Emission Class 2) Machinery Directive 98/37/EU with no need for improvements.
Electromagnetic Compatibility EMV 89/336/EU Low Voltage Directive
73/23/EU Gas Application Directive 90/396/EU Press Vessel Directive
When manufacturers have
97/23/EU The burners carry the CE and CE-PIN label not kept up with the latest devel
Weishaupt (South Africa) (Pty) Ltd
PO Box 1739, Honeydew 2040 Why dont we wait for life on
Tel: 011 793 6711 Fax: 011 793 6488
CM 120517CG
CENTRE OF EXCELLENCE
AfriSams Centre of Product
Excellence offers customers an
additional Efficiency Audit service
opments and trends in produc
tion, this service can mitigate
[the situation], Dawneerangen
explains.
Mo r e ove r, h e n o t e s t h a t
AfriSam can draw from the expe
rience and progress gleaned from
several readymix concrete plants
operated by the company nation
ally in its provision of these advi
sory services.
Though still in its infancy, the
service has been offered to one
of AfriSams biggest clients, with
plans to roll it out to other CPM
customers over time.
Dawneerangen notes the only
challenge experienced has been
the reluctance by some opera
tional staff to have outsid
ers evaluate their operations
and scrutinise their daily work.
However, there has been good
buyin by senior management
from the companies AfriSam
has approached.
To mitigate this reluctance, a
preaudit meeting is conducted,
where the intentions of the audit
are clearly outlined and freedom
to participate is emphasised.
The meeting aims to clar
ity to staff that the audit is not
being done on the order of senior
management, but is an additional
service offered by AfriSam to
improve productivity.
This service is mutually bene
ficial, as it ensures an opti
mised process for CPMs and

other planets to find us? Why

E-mail: weishaupt@mweb.co.za do we have to do all the work?
Website: www.weishaupt.de To page 61

56 ENGINEERING NEWS | May 1218, 2017 RA

 IDENTITY & SECURITY

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CEMENT & CONCRETE
Vertical roller mills
enhance cement plant
H
ighquality cement manufacturer
and supplier United Cement
Company (Unisem), of Nigeria,
is using two vertical roller mills (VRMs)
from exportorientated engineering
company Loesche at its successfully
commissioned new Cement Plant 2 at
Mfamosing, in Cross River state, Nigeria.
Loesche received the order for two
VRMs of the LM 60.4 type for grinding
cement raw material and the LM 70.4+4
CS type, the biggest Loesche VRM, for
grinding cement clinker.
The cement plant at Mfamosing, located
30 km northeast of Calabar, the capital of
Cross River state, Nigeria, has been fully
operational since February 2009 and is
equipped with the latest technology. With
a capacity of 2.5million tons of cement
a year, the Unicem plant has now been
extended by this Loesche technology.
The type LM 60.4 mill for the grinding
LOESCHE
Loesche is an owner-managed, export-
orientated company, which was founded
in Berlin, in Germany, in 1906. Today,
the company operates from its head
office in Dsseldorf and has subsidiaries,
representatives and agencies around the
world.In 1928, Loesche built the first spring-
loaded air-flow mills, which are known to this
day as Loesche mills.
Nowadays, Loesche vertical mills form the
core of many plants used to dry-grind coal,
cement raw materials, granulated slag,
industrial minerals and ores.Thanks to its
grinding plants with throughputs of 200 t/h
to 300 t/h for the cement industry and self-
inert, central coal-grinding plants for hard
and brown coal power stations, Loesche
CRACKS IN YOUR CONCRETE?
CemFIL AR glass fiber is a lightweight, high strength and durable
cement COMPOSITE material for use in concrete reinforcement
Building facades
Precast concrete
Industrial flooring
Furniture and more
58 ENGINEERING NEWS | May 1218, 2017
of cement raw material boasts a production
rate of 500 t/h.
Mill LM 70.4+4 CS type is designed
for a capacity of more than 370 t/h. In
combination with this enormous capacity,
a new drive, with system operating power
of up to 8 800 kW, was necessary. Close
cooperation between manufacturers
of propulsion components and test
systems RENK Augsburg and Loesche
Dsseldorf, saw this development take
place. Input from the enduser, global
building materials and solutions company
INNOVATIVE ENGINEERING
The biggest Loesche mill type, the
LM 70.4+4 CS, in successful operation
Another advantage of this with the new COPE drive at cement plant
Mfamosing
mill is that it has the same
footprint as a standard mill LafargeHolcim, as well as from a
gearbox for VRMs renowned technical university in Germany,
was taken into consideration.
The innovative result of this combined
input and effort is the Compact Planetary
is well positioned in the market in terms Electrical (COPE) drive. The new concept
of vertical mills and turnkey grinding mills. is designed for gearboxes of 4 000 kW
Loesche supplies turnkey plants, which are
individually planned and built for the required to 12 000 kW. This results in a single and
process steps. This includes plants for special motor, as well as the attendant
processing, material storage, transport and risks, becoming obsolete. Further, it
delivery, vertical mills, hot-gas generators, eliminates the failure in the fast running
filter and separator systems, complete
automation technology, plants for all aspects firststage gear of conventional gearboxes.
of construction above and below ground, steel Another advantage of this mill is that it
construction and piping systems. has the same footprint as a standard mill
The companys grinding plants are compliant To page 61
with national and international safety
regulations. At present, around 330 people
are employed at the companys head office Remember, everyone seems normal until
in Dsseldorf, with around 600 employed you get to know them . . .
worldwide.
CONTACT US FOR MORE INFO!
TAISHAN FIBERGLASS SA
011 824 5790 OR INFO@ CTGF.CO.ZA
CemFIL is the best fibers for plastic
shrinkage and crack prevention!
RA
CEMENT & CONCRETE

Online concrete technology been correspondence-based

self-study courses, which
prepare delegates to sit the

courses launched
Concrete Technology and
Construction Stage2 and
Stage3 examinations set by
the London-based Institute of
Concrete Technology.
ROBYN WILKINSON | CREAMER MEDIA STAFF WRITER Perrie explains that the

T
o improve ease of
access to education
and training courses as
well as pass rates in the South
I met my soulmate. She didnt.
MOVING WITH THE TIMES
The Concrete Institute is now able to track delegates progress through the online platform to ensure that they
prepare adequately before sitting the exam
African construction sector,
cement and concrete technical
services provider The Concrete
Institutes (TCIs) School of
Concrete Technology launched
its online e-learning platform
in January.
TCI MD Bryan Perrie
notes that level41 and 42
courses, covering general
principles of concrete
technology and practical appli-
cations respectively, have
been a mainstay of TCIs
education and training offering.
These have traditionally
completion of the level41
and 42 courses, following
completion of the level10,
20 and 30 courses, is an
important prerequisite for
delegates who wish to study
towards the ultimate goal
of the Advanced Concrete
Technology diploma offered
by the Institute of Concrete
Technology.
The School of Concrete
Technology will offer the
diploma programme again
in 2018, in Midrand.
However, delegates often
do not realise how crucial it
is to complete the coursework
to pass the level41 and 42
examinations and, thus, tend
to be ill-prepared, resulting
in low pass rates, Perrie
points out.
To improve the pass rates,
TCI has taken advantage of
technology advancements
and converted the courses
to an online platform. Perrie
explains that, once delegates
have registered and paid for
the course, they receive course
notes online.
To page 64

MILLING & CLASSIFICATION IS OUR BUSINESS

E V E N 1 0 0 Y E A R S O F B E I N G A N I N N O V AT O R A N D
MARKET LEADER DOES NOT KEEP US

EVERY DAY
FROM INVENTING BETTER SOLUTIONS
Loesche six roller Mill

Are you looking for cost-effective size-reduction and classification of ores, industrial minerals and concentrates? Contact Loesche
SA to find out the advantages of the Loesche Grinding System for your beneficiation process.

Tel: +27 (0)11 482 2933 | Fax: +27 (0)11 482 2940 | Email: umeyer@loeschesa.co.za | Web: www.loesche.com

60 ENGINEERING NEWS | May 1218, 2017 EG

CEMENT & CONCRETE

From page 56
strengthens the relationship with
customers, enabling AfriSam to
offer continued service provision.
Streamlining Operations
Several inputs can determine how
profitable manufacturing opera
tions are for concrete products,
and Dawneerangen highlights
the constituent materials that
are used to manufacture the
products as one of the biggest
inputs.
CPMs essentially buy cement
and aggregates, and combine
them to create another product
such as a brick or a roof tile,
Dawneerangen says, dispelling
the misconception people may
have that cement is just cement.
The product found in a bag is
mistakenly believed to be suit
able for any application.
He h igh lights the cost of
cement as the priciest compo
nent in manufacturing. As such,
this is where he believes that
manufacturing operations are not
optimised, as they are not fully
using the properties of different
cements to their full potential.
achieve the high early strength
that is required by manufactur
ing operations.
Dawneerangen explains that
most CPM products are made
in moulds that form the prod
uct. Therefore, the quicker the
moulds are turned around and
the product demoulded, the more
efficient, or productive, manufac
turers are.
This necessitates a very high
early strength performance and
consistency, as a variation will
impact on productivity, owing to
TAILOR-MADE inconsistent demoulding times.
AfriSams Rapid Hard Cement He indicates that AfriSam
product has been specifically is currently the only manufac
designed to achieve a very high turer in South Africa produc
early strength
ing a cement product in the
52.5R strength class, which is
To help subvert this, AfriSam the higheststrength class possi
has developed specific cement ble, according to South African
products over the years that cement specifications.
have been tailormade for spe According to the specifica
cific applications, which takes tion, AfriSam RHC 52.5R needs
into account the demands of to achieve a twoday strength
customers. of 30 MPA. When compared
Dawneerangen cites AfriSams with the closest strength class
Rapid Hard Cement (RHC) as 52.5N which needs to achieve
an example, with RHC having on ly a two day st rengt h of
been specifically designed to 20 MPA, it is far superior to
any product currently on the mar
ket, says Dawneerangen.
He emphasises that it should
be ensured that RHC is used cor
rectly. Ensuring this correct use
is facilitated through the cen
tres team of technical experts,
which provides technical support
on site for customers. Moreover,
Dawneerangen notes that, since
RHCs implementation, sales
have increased yearonyear.
RHC is not required to be used
on all concrete applications, but
has a niche market, such as appli
cations where high early strength
is required and when concreting
in cold weather conditions, but
more manufacturers are enter
ing this space and adopting this
product.
AfriSam RHC is a sophisti
cated product developed using
the latest cement production tech
nology. Its effectiveness should
not be measured against price by
comparing it to other cement
products available, but rather
against its ability as a concrete
offering at the lowest possible
cost.
ENGINEERING NEWS COUPON ON PAGE 82 E450439

From page 58
gearbox for VRMs. Further, this presents
the first time eight drive motors for a
VRM gearbox have been used, as well
as the first time multiple drives in VRMs
have operated with or without variable
frequency drive.
Other benefits include the easy removal
of individual mill motor units to minimise
downtimes by about two
hours; and an extremely compact design
with motors directly attached to the
gearbox housing.
Loesche points to the most important
difference of this development being the
fact that long standstills of months in
duration to repair the mills conventional
gearboxes, will be a matter of the past.
Implementing the COPE drive requires the
standard foundation. The replacement of
one of the eight small motors is easily done
as they are readily available and easy to
install.
ENGINEERING NEWS COUPON ON PAGE 82 E450478

DELIVERING CONCRETE RESULTS

TAKRAF Africa offers innovative, reliable and sustainable
solutions in mining and metals.
Specialised services and technology for the cement industry cover
multi-compartment silos, classification systems, extraction and
transport air slides, flow-control gates, transport systems and
complete ash handling plants.

TAKRAF Africa
96 Loper Avenue, Aeroport, Spartan
Kempton Park, 1619, South Africa
T: +27 11 201 2300
takraf.afr@tenova.com www.takraf.com

RA ENGINEERING NEWS | May 1218, 2017 61

CEMENT & CONCRETE
New research facility
enhances offerings
TASNEEM BULBULIA | CREAMER MEDIA REPORTER
C
hemicals solutions provider Chryso
Southern Africa has established
a research facility in Jet Park,
Johannesburg, to develop products
specifically for the African market, while
offering regional testing services.
Chryso CEO Norman Seymore tells
Air Pollution Control across the
spectrum...from engineered, turnkey
systems to unit dust collectors
Our product range includes:
Pulse jet bag filters | Reverse air baghouses
Venturi, dynamic & vane scrubbers | Cyclones
Pressurisation units | Shaker & silo vent filters
Air Pollution Control a business unit of John Thompson | A division of ACTOM (Pty) Ltd
Tel: +27 (0)11 478-0456 | P.O. Box 4051 Cresta 2118, RSA
Email: infoapc@johnthompson.co.za
62 ENGINEERING NEWS | May 1218, 2017
Engineering News that South Africa has
been facing a weakening currency over the
past few years, which has put pressure on
a number of Chryso products, as many of
these are imported. To circumvent this, the
company initiated an investment in 2015 to
produce the polymers for the raw materials
www.johnthompson.co.za/apc
NORMAN SEYMORE
New Chryso products are the continual
evolution of improvements on existing products
it uses in its local products, which was
manifested in the construction of a new
plant that began operating in 2016.
Further, Chryso has rolled out three
concrete laboratories in Durban, Port
Elizabeth and Cape Town to assist
customers with the application of company
products.
The company relied on imported con
centrates for concrete, which it would then
blend locally, but the new facility now
allows for local manufacturing, offering
benefits to customers, Seymore says.
He further points out that Chrysos
cement and concrete products are tech
nical in nature, and not commodities.
This is evident in the many variables
to consider in the production of these
products, such as different aggregates
and areas of application, which require
that concrete mix designs and concrete
admixtures (chemicals added to concretes
at the mixing stage to modify some of the
properties of the mix) be suited to local
conditions.
It is, therefore, imperative that the com
pany has the necessary facilities to test
customers materials to offer the best, most
suitable solution, Seymore says, adding
that this is being facilitated through the
new centre.
He also highlights that, previously,
Chrysos technicians worked remotely or
in different facilities, but now all 15 will
be housed at the new centre. This will
combine their skills under one roof for
development work on repair materials,
grouts, all cementitious systems and
cement testing. In this way, the new centre
will allow for a knowledgesharing base to
communicate knowledge and experience
easily while evaluating different aspects of
concrete.
EG
CEMENT & CONCRETE
Specialised construction
products supplier a.b.e
Construction Chemicals a
subsidiary of Chryso has a
development facility laboratory
on its premises in Boksburg,
Johannesburg, for all cemen
titious matters. Seymore
indicates that staff from this
laboratory form part of the
group of technicians that will
be moving to the new facility.
Chryso Southern Africa is
part of Chryso Group, which is
headquartered in France, where
the groups main laboratory is
also located. The new Jet Park
facility is Chrysos biggest
centre of operation in South
Africa.
While the laboratory has
not yet been officially opened,
Seymore says it is already ope
rational. The official opening
will be held within the next few
months.
Product Innovation
Chryso has been in South
Africa for more than 20 years.
Seymore avers that, in line
with the companys tagline,
Innovation is our chemistry,
the company invests up to 4%
of its yearly revenue in research
and development (R&D).
The global company
launches about 30 new pro
ducts each year, with these
new technologies having to
be adapted regionally to suit
local conditions. Seymore
says the new facility allows
for this adaptation to facilitate
introduction into the local
market.
He explains that these new
Source: Bloomberg
LOCALISATION
Concrete mix designs and concrete admixtures will be specified to suit
local conditions at Chrysos new centre
EG
products are the continual
evolution of improvements
on existing products. The
company has been successfully
marketing such products in
South Africa some since the
inception of the company in
the country and the charac
teristics, technology or perfor
mance of these products
improve every year.
Moreover, he says, current
achievements in terms of how
Source: Bloomberg
high skyscrapers can reach,
the speed of construction and
ease of concrete placement are CENTRE OF EXCELLENCE
initiatives that are facilitated by Chrysos new research facility will develop products specifically for the
these continual improvements. African market, while offering regional testing services
Concrete Solution mining up to a distance of then having to set immediately
Chryso enjoys a dominant 4 km underground as an once applied.
position in the South African example. In this instance, Seymore says this is faci
market and it has been concrete needs to be litated through the use of
involved in supplying cement manufactured on the surface chemical additives, which
and concrete products for and transported below surface create workability for ease of
some of the countrys major at depth, and horizontally transport and then accelerate
infrastructure projects, such once there. This situation is the setting and final stages of
as the Gautrain, the Nelson further complicated by the the concrete. Chryso has also
Mandela bridge, the Durban concrete having to remain fluid worked on gold, platinum and
port upgrade and the Cape and workable from when it is diamond mining operations.
Town Waterfront development, mixed to when it is placed, and ENGINEERING NEWS COUPON ON PAGE 82 E450368
Seymore explains.
The company is supply
ing the Fourways Mall
upgrade project, the pedestrian
bridge construction between
Alexandra and Sandton, all in
NOZZLES AND SYSTEMS
FOR GAS COOLING DeNOx FGD
Gauteng, and the Saldanha Bay
upgrade, in the Western Cape,
with cement and concrete Gas Treatment by Lechler
products. Gas Cooling Systems complete with
Moreover, he notes that
the company has a notable nozzles, lances, pumps and control units
presence in mining operations, for single and twin fluid nozzles
specifically in underground DeNOx-Equipment for SCR- and
construction. He cites the SNCR-Processes with nozzles, lances,
scenario of an operation
pumps and control units
Wet FGD with nozzles
Semi dry, or dry FGD with nozzles,
lances and systems
CM 120517MF
ENGINEERING NEWS | May 1218, 2017 63
CEMENT & CONCRETE
Mitigating poorly laid
concrete floors
TASNEEM BULBULIA | CREAMER MEDIA REPORTER
A
n element often
overlooked by the
construction industry
contractors when laying
screeds for floor surfaces
is the importance of laying
concrete subfloors to tolerances
acceptable for flooring finishers,
says interior flooring supplier
and installer KBAC Flooring
senior contracts manager Ian
Duncan.
He tells Engineering News
that most sites that use vinyl
flooring materials, KBAC has
to prepare the subfloors before
installation, owing to the thin,
malleable nature of the vinyl.
If the concrete surface is not
prepared to a sufficient smooth,
flat standard, the vinyl moulds
itself to the concrete subfloor
and a bumpy, poorly prepared
undulating surface will show
through the completed vinyl
floor covering.
The subfloor preparation is
especially important because
Time is what keeps things from
happening all at once.
BRYAN PERRIE
We have gone to great lengths to make the online learning interface as
user friendly as possible and have received positive feedback
64 ENGINEERING NEWS |
Source: Bloomberg
UNDER THE SURFACE
Poorly laid concrete floors are problematic for flooring installers, who
have to remedy this before laying floor coverings
vinyl is used in a number of extra element to create
commercial and residential the desired smooth finish.
application, ranging from The onus mostly falls
kitchens to banqueting areas. on flooring contractors to
When a building is con- prepare uneven subfloor, as
structed, a slab is cast, which the construction companies
consists of a concrete mix, that laid it are reluctant to do
comprising stones, a sand so. Duncan notes that this has
component and cement, been a prevalent problem in
Duncan explains. As a result the building industry for many
of this combination of different years.
consistencies, the finished slab There are tolerances builders
is not completely smooth, which have to work to, but these
requires the company to add an are inadequate for flooring
From page 60
These are subdivided into
smaller, manageable modules
with tests at the end of each
section.
This helps to encourage
continuous learning, as
delegates cannot progress to
the next section of notes
without proving their compe-
tency in the previous section
by passing the test.
In this way, they are
encouraged to... re-read
sections they are struggling
with until they are able to
answer the questions correctly.
TCI also tracks delegates
progress through the online
May 1218, 2017
companies to work with, are not
always followed and, therefore,
have to be mitigated from the
flooring companys side, he
notes.
This necessitates the need for
a levelling screed application.
KBAC is using developer and
manufacturer of concrete-based
products iTes self-levelling
screed, which Duncan indicates
is the companys current pre-
ferred choice. He describes it as
a smooth textured cementitious
compound, with a good flow
rate to facilitate a smooth finish.
Self-Levelling Screed
Prior to 1976, companies used
a far less sophisticated product,
which was spread manually
onto the floor, followed by
grinding and sanding to achieve
the smooth finish. Duncan says
this process was very labour
intensive and time consuming.
However, UK-based con-
struction industry Ardex
launched a self-levelling screed
in 1976 that contributed much
to moving this away from a
manual process.
KBAC sent experts to the
UK for training on installing
and laying this product to
apply the knowledge and
skills in South Africa. Duncan
mentions, however, that these
products were expensive at the
time, as they were imported,
but that there has been a posi-
tive proliferation of locally
platform to ensure that they
have undertaken adequate
preparation before sitting
the exam.
Perrie points out that this
is particularly useful in cases
where an employer is paying
for employees to complete the
course, as the TCI can provide
an alert if delegates are not
upholding their obligation
to undertake adequate exam
preparation.
He further highlights that
the online platform provides
the institute with the scope
to expand its education and
training offering beyond South
Africas borders.
EG
CEMENT & CONCRETE
manufactured self-levelling
screeds in South Africa, with
many companies now offering
excellent quality products.
He says such screeds are
quicker to apply than the older
manual methods, which took
days to be completed, as they
had to be manually sanded
down, which self-levelling
screeds do not require.
The critical aspect of apply-
ing a self-levelling screed is
to follow the products mix-
ing methodology, whereby
a predetermined ratio of the
screed and water are combined
in a drum (5 of water to one
bag of screed), mixed with
an electric mixer and poured
on the surface. The screed is
then raked out to the required
thickness level and rolled flat
using a roller. The screed is then
left for 24 hours at a set flow
rate, settling and drying into a
smooth, flat surface, Duncan
extolls.
The training departments of
manufacturers train installers to
use the correct mixing method
for self-levelling screeds, which
KBAC does as well. We train
each of our teams how to use
this product to ensure that they
are competent, and this has
placed us in good stead when
it comes to preparing concrete
surfaces for flooring, Duncan
acclaims.
He does note two repercus-
sions, however. Firstly, the self-
TCI is currently in discus-
sions to set up an examination
centre in Kenya, and Perrie is
confident that this will be the
first step in further expansion
into the continent.
The institute will also aim
to expand the online learning
format to its other courses in
due course.
We have gone to great
lengths to make the online
learning interface as user
friendly as possible and have
received positive feedback so
far. Obviously, there have been
a few teething problems, but
we are being very proactive
in identifying and working
EG
6% of the
population
have access
to electricity.
PREFERRED PRODUCT
KBAC Flooring is using iTes
self-levelling screed to achieve
smooth surfaces
A 22 MW
hydropower
levelling screed obviously adds
weight to the building, at least
5 kg to 10 kg per square metre
on a particularly poorly laid
surface. This weight can add plant delivering
electricity to
up and, therefore, needs to be
monitored by an engineer to
ensure stability.
Secondly, laying self-levelling
screed is labour intensive and Africas largest
gold mine.
time consuming, which adds
an additional facet to the com-
panys workflow, as this pre-
paration of concrete surfaces
has to be conducted before
being able to install the floors.
The additional time required
is not included in the flooring
Impossible?
contractors work programme.
Duncan says KBAC can
lay a floor within 24 hours
Not for DRA.
of applying the self-levelling
screed. Self-levelling screed
Randgold Resources and Anglo Gold Ashantis
has made the process of
processing plant at Kibali in oriental DRC, designed and
levelling floors so much easier.
implemented by DRA, is currently producing 600 000
Previously, it would take three
oz of gold per year thanks to the energy provided by
to five days he concludes.
Africas most powerful river. Detailed designed and
ENGINEERING NEWS COUPON ON PAGE 82 E450838
constructed by DRA, a first for the company, the Nzoro
II hydropower plant produces clean, sustainable power
at a third of the cost of diesel. Every member of our
through them. The first group
team dedicated their expertise to ensure that the utmost
of learners to use the online
environmental preservation was maintained at all levels
platform will write their exam
of implementation. In a country with little electrical
this month and we are eager to
infrastructure, were proud to deliver a solution that not
see the positive impact that this
only sustains the natural resources, but the people of
development has had.
Kibalias well. Its just another way DRA delivers through
A new one-day course, a
all circumstances.
Level15 Concrete for Batchers
and Batch Plant Staff, will
also be offered this year by the DRAglobal.com
School of Concrete Technology,
in partnership with the Southern
African Ready Mix Association
(Sarma).
The course will be pre-
sented by Sarma and offered
in Johannesburg, Durban, Port Extraordinary Possibilities
Elizabeth and Cape Town.
ENGINEERING NEWS COUPON ON PAGE 82 E450382
ENGINEERING NEWS | May 1218, 2017 65
COMPANYPROFILE
PMSA Paver, Block & Brick Machinery
C onc rete equipment manufac turer PM SA of fer s t he most
technologically advanced and high-quality machinery available to the
precast concrete sector, including brick, paver, block and specialist
decking and retaining wall block products in South Africa.
The company has been the leading concrete product producer for
almost five decades. The company is the leading and largest supplier
of a full range of brick, block and paver making machinery on the
continent. With over 40 years of experience in the market, PMSA
can offer bespoke solutions to customers.
PMSA partners with leading European suppliers of components
used on the brick, block and paver machinery to ensure that the plant
is robust and able to continuously produce at very high efficiency
output levels.
PMSA offers fully automated plants as well as manual plants
to operators starting up in the sector. Along with installation and
commissioning, PMSA also offers full training of plant operators and
66 ENGINEERING NEWS | May 1218, 2017
staff to ensure that the customers business is sustainable in terms of
technology transfer from PMSA to the customer and that the customer
is able to produce quality products once the training is complete.
Curing systems are also offered to reduce cement consumption by
up to 10% or more, increase early 24-hour strength and offer a better
overall quality concrete product.
The company employs over 260 staff, including 16 field service and
installation technicians with years of specialist knowledge. PMSA has
direct owned branches in Johannesburg, Cape Town and Durban,
which allow for countrywide support to clients.
The business philosophy of PMSA is Built To Last, which
encompasses three aspects of the business: customer for life through
a partnership approach with customers, quality machinery that will
operate effectively for decades as well as PMSA being a reliable
supply partner that is here to stay and support clients into the future
for decades to come.
MM
COMPANYPROFILE
Pictures by Chief Photographer Duane Daws
Welding Alloys
South Africa
To lead the market in engineered wear protection solutions and flux
cored welding wire technology, Welding Alloys South Africa (WASA)
is focused on responding to its customers needs.
Part of the Welding Alloys group, which covers more than 150
countries through a network of 30 subsidiaries worldwide, WASA has
been servicing the sub-Saharan Africa market since 1976.
Together with KRAM Engineering, a new subsidiary of WASA since
2016, the company provides the mining, cement, power, petrochemicals
and steel industries with abrasion-, impact- and corrosion-protection
services to reduce life cycle costs.
Performance and quality criteria are becoming ever more stringent
and require ever more complex materials. Shortages of raw materials
are leading increasingly to the development of composite components,
Engineered Wear Protection Solutions
Tel: 011 421 3750
www.weldingallyssa.co.za
sales.wasa@welding-alloys.com
MM
with surfacing provided by the hardfacing method, using sophisticated
alloys, notes the company.
Operating from its facilities in Benoni and Roodepoort, WASA is
equipped with wire manufacturing, automated plate, pipe, roller press
and table welding equipment, and employs 147 people. The company
offers chromium carbide overlay, flux cored welding wire, wear linings
in basalt and alumina ceramics, silicon and tungsten carbide and
rubber; epoxy wearing compounds; idlers; ultrahigh-molecular-weight
polyethylene; and hydrocyclones.
Applications include crushers, steel mill rolls, sugar cane milling,
coal transportation, mining and quarry equipment, excavator buckets,
caterpillar rollers and tracks, valves, forge hammers, chutes, cyclones,
feeders, hopper bins, pulley lagging, launders, thickeners, screw
conveyors and pulverised coal systems.
The company is ISO 9001- and ISO 3834-accredited.
CM 170317MF
Tel: 011 552 8640
www.kramengineering.co.za
info@kramengineering.co.za
ENGINEERING NEWS | May 1218, 2017 67
 NUCLEAR ENERGY
Nuclear energy
provides secure,
clean, affordable
baseload power
Page 72
Nuclear is too expensive,
I
mplementing a nuclear build pro
gramme in South Africa would
be extremely difficult because of
the associated expenses as well as the
controversy surrounding nuclear power,
says financial services company Thomson
Reuters.
Globally, government decisions
regarding nuclear programmes are
delayed and often deferred to incoming
administrations because its too big a
decision to make, especially in light of
public concerns relating to costs and
safety, says Thomson Reuters Africa
supply chain and commodities head
Robert Fish.
He states that, globally, there has hardly
ever been a nuclear build that has been
completed on time and within budget.
Further, he notes that African countries
already struggle to build oil refineries,
and that embarking on a nuclear build
programme is, 12 times more complex
than building and maintaining a refinery.
Fish notes that the costs associated with
constructing the necessary infrastructure
including the establishment of transmission
infrastructure as well as labour costs
68 ENGINEERING NEWS | May 1218, 2017
too controversial
NADINE JAMES | CREAMER MEDIA STAFF WRITER
added to the costs of importing most of
the nuclear technology, fuel and materials,
will incur large amounts of debt.
Additionally, financing the project and
its resulting foreign currency denominated
debt would, in light of recent reviews by
ratings agencies, prove difficult.
Fish comments that, although the ulti
mate cost of the nuclear build is important,
one should also ask, how much has the
nuclear build programme already cost
us?, citing ratings agency Fitch Ratings
decision to downgrade the sovereign credit
rating and its likely impact on the South
African economy. He explains that the
downgrade was partially owing to Fitchs
concerns regarding the proposed nuclear
deal.
Fish adds that many nuclear reactors
have had some sort of safety incident,
noting that the major ones that come
to mind are Fukushima, in Japan, and
Chernobyl, in what is now Ukraine.
However, he stresses that less publicised
and smaller incidents such as radiation
leaks and technical malfunctions occur
semifrequently, with both Koeberg and
Pelindaba experiencing such incidents in
Compiled by NADINE JAMES
CONTROVERSIAL
While the Cape Town High Court significantly
delayed the implementation of a nuclear new
build programme last month, the plans for
such a programme persist
the recent past. The lack of public support
is also concerning, says Fish, noting that
a deal has yet to be signed with a court
case challenging the nuclear procurement
process having recently been heard. The
case was heard before the Cape Town
High Court on February 22 and judgment
handed down on April 26.
Environmental organisations Earthlife
Africa Johannesburg and South African
Faith Communities Environment Institute
approached the court in December to
legally challenge the South African
governments nuclear procurement process.
Earthlife notes on its website that, in
the initial hearing on December13, the
court was disquieted by the signing of a
Section34 determination for 9600MW of
nuclear power by then Minister of Energy
Tina Joemat-Pettersson.
The website states: The Court stressed
in its judgment that there was no evidence
presented to the court explaining how
this determination came about, when
it was decided upon and the processes
leading thereto, despite the determination
apparently having been made more than
To page 70
EG
NUCLEAR ENERGY
Atomic agency looks to
increase assistance to
nuclear hopefuls
N
uclear energy organi
sation, the International
Atomic Energy Agency
(IAEA) and the Russian State
owned atomic corporation
Rosatom have reached an
agreement that is aimed at
strengthening IAEA assistance
to member States that are
considering introducing or
expanding nuclear power
programmes.
Under the agreement, IAEA
programmes on nuclear infra
structure development will
receive a financial contribu
tion of up to $1.8million and
inkind contributions of up to
$1.9million from Rosatom,
over the next three years.
The agreement was signed
at the IAEAs headquarters in
Vienna last month by IAEA
management deputy director
From page 68
a week before the hearing.
The State was ordered to
pay punitive costs, while the
case was postponed until
February22.
In the courts judgment, it
set aside this and a previous
determination, as well as the
request for information for the
nuclear new build programme
issued by Stateowned power
utility Eskom in December.
Fish points out that,
while many will welcome
the decision, particularly
with regard to ensuring
Parliamentary involvement
and endorsement, there is
still the distinct possibility
that government will appeal
Youre like a candy bar:
half sweet and half nuts.
70 ENGINEERING NEWS |
general Mary Alice Hayward,
and Rosatom International
Relations deputy director
general Nikolay Spassky,
in the presence of IAEA
directorgeneral Yukiya
Amano and Rosatom director
generalAlexey Likhachev.
The IAEAs nuclear infra
structure development sec
tion, through the technical
cooperation programme,
provides targeted support to
member States embarking on
new nuclear power programmes
or expanding existing ones.
According to the IAEA, about
30 countries are currently
considering, planning or
starting such a programme.
Developing a nuclear
power programme is a major
undertaking of at least ten
to 15years. The IAEAs
the decision, ensuring that
questions around the countrys
future energy mix remain
unresolved.
Alternatives
In a country where one in
four people do not have access
to electricity, the focus should
be increasing access relatively
quickly and not on build pro
grammes that will take 15 to
20years to complete, notes
Fish.
He says in terms of quick
and effective electrification,
renewables technologies are
vastly superior. A new coal
fired power station takes
about eight to ten years to
complete, a nuclear pro
gramme is almost double
that, with a bare minimum of
15years. Renewables plants
take between four and six years
May 1218, 2017
Milestones Approach provides
structured guidance and
checklists to help nuclear
newcomer countries better
understand the commitments
involved in introducing nuclear
power, from developing a
regulatory framework to build
ing a plant and planning for its
decommissioning and nuclear
waste management.
In particular, the agreement
will help strengthen IAEA
efforts to promote capacity
building in newcomer and
expanding countries in areas
including nuclear safety,
stakeholder involvement and
the development of a national
position on nuclear power.
Ghana Case Study
One of the countries that may
benefit from this agreement is
IS NUCLEAR NECESSARY?
Of the 195 countries on earth,
only 30 have some sort of
nuclear capacity. Of these
30, only five use nuclear to
generate more than 50% of their
electricity.
Thomson Reuters Africa
supply chain and commodities
head Robert Fish states that, of
late, most of the world is moving
away from nuclear. He comments
that even France, which has the
largest share (72%) of electricity
generated by nuclear globally,
has levelled off, while its
to complete. Thats a quarter of
the time it will take to build a
nuclear reactor.
Further, he notes that
the cost/kilowatt hour for
renewable technology has been
exponentially reduced, and
that innovation in this sector is
Ghana. In January, an IAEA
team of experts concluded an
eightday mission to Ghana
to review the countrys infra
structure development for a
nuclear power programme.
The Integrated Nuclear
Infrastructure Review (INIR)
was carried out at the invitation
of the Ghanaian government.
Ghana, whose economic
development is hampered by
a lack of consistent electricity
supply, is considering a poten
tial role for nuclear power in
the countrys energy mix. It
has established the Ghana
Nuclear Power Programme
Organisation (GNPPO) to
coordinate all preparatory
activities related to the deve
lopment of a nuclear power
programme.
The INIR team concluded
that Ghana has made con
siderable progress in the
development of its nuclear
power infrastructure.
It established effective
mechanisms to involve a
comprehensive range of
national stakeholders in the
relevant activities. The team
made recommendations and
suggestions aimed at assisting
Ghana in making further
European Union contemporaries
Italy, Belgium, Germany and
Spain are in the process of
phasing out their reactors.
Fish notes that: Theres a
saying that Nuclear isnt for
Africa. Id add a caveat that
nuclear isnt for most countries.
He concludes that most
of the industrialised world is
reluctant to invest in nuclear,
and that the proposed nuclear
build programme is costing us
already, adversely impacting on
the countrys economic future.
unparalleled, noting that, since
2011, the number of patents
for hydro and wave energy
related inventions have
increased by 82%, with solar
related patents increasing at a
similar rate.
He advocates for the use
EG
 NUCLEAR ENERGY
Picture by Senior Chief Photographer Duane Daws
NUCLEAR AMBITIONS
Ghana may soon erect a nuclear power station, making it the second
African country to do so
progress in its nuclear power
infrastructure development.
The INIR mission was
conducted in a cooperative
and open atmosphere, said
IAEA nuclear infrastructure
development section team
leader and senior nuclear
engineer Anthony Stott.
The Ghana team was very
well prepared for the mission,
and managed its participation
in the review effectively.
At the time, Ghana Atomic
Energy Commission director
of renewable microgrids,
compact, standalone renewable
power generators that service
small towns or communities.
Fish notes that aside from
the fact that they would be
more cost effective and faster
to implement, microgrids
would also negate some of the
problems plaguing conventional
power stations. He cites,
for example, problems with
transmission, noting that,
currently, a large percentage
of power is lost during trans
mission, which would not
be the case with a renewable
microgrid, as it would be
servicing the community
where it is directly located.
Gas is a common cosource
of power for utilityscale power
provision when renewable
power makes up a component
of electricity generating
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chairperson Benjamin Nyarko,
welcomed the outcome of
the INIR mission.Ghana is
committed to the careful step
bystep development of its
nuclear power programme,
he said.
The gaps identified by the
mission will be tackled in
earnest to enable the country to
make a knowledgeable decision
in 2018, as per its roadmap for
nuclear power development.
ENGINEERING NEWS COUPON ON PAGE 82 E450711
capacity. Fish notes that,
while the large gas find in
neighbouring Mozambique
is too big to be ignored, he
cautions that South Africa
would still have to import the
gas from producers. As such,
he suggests that hybrid gas
and renewables plants may be
the solution, as it will limit the WorleyParsons provides innovative solutions that result
amount of gas consumed. in on-time delivery, cost savings and risk reductions. Our
Further, he notes that were
full range of power services and experience is driven by
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generation.
ENGINEERING NEWS COUPON ON PAGE 82 E450581
ENGINEERING NEWS | May 1218, 2017 71
NUCLEAR ENERGY

Nuclear energy provides life cycle costs of electricity from the different
generation technologies over the 60-year life
of a NPP, nuclear energy comes second only

secure, clean, affordable

to hydropower. For example, Koeberg has
been producing high volumes of the lowest
cost energy on the grid, since its construc-
tion costs were amortised two decades ago,

baseload power
he points out.
He notes that discrepancies in estimated
energy costs can and have been manipulated,
stating that, when conveniently taking certain
criteria out of context, some technologies can
NADINE JAMES | CREAMER MEDIA STAFF WRITER
appear to be more cost effective than others.

N
uclear energy is the only provider
of secure, reliable, clean and afford-
able baseload power that, from a total
life cycle cost perspective, offers one of the
most affordable electricity sources, states
the Nuclear Industry Association of South
Africa (Niasa).
Niasa supply chain development subcom-
mittee chairperson Des Muller lists reasons
why other baseload power providers are sub-
par, noting that coal despite its ability to
provide reliable and affordable power supply
produces emissions that affect air quality
and are a major health concern. Gass dis-
patch ability is not suited for pure baseload
and, the volatility in fuel costs, although cur-
rently low, could have an enormous impact
on the electricity price in the future. Finally,
the intermittency of renewables ensures
that they barely compete in the baseload
space, especially when factoring in the cost of
balancing power from gas turbines and the
costs of energy storage systems needed to
manage this intermittency.
Muller notes that the high cost of nuclear
power plants (NPPs) can be attributed to
the essential safety systems built into the
plants, affirming that these systems ensure
that installed costs are higher than those of
other technologies. He comments that, despite
higher lead times and costs, the total life cycle
cost of electricity from a NPP is still one of
the most affordable forms of electricity.
When considering the all-inclusive total
Preparing for the Proposed Build
Muller notes that, as with all power genera-
tion technologies, the average cost of NPPs
will drop as more power plants are built and
manufacturing and construction techniques
are refined.
Additionally, as far as he is aware, South
Africa would likely procure a proven tech-
nology to mitigate the risk of cost and sche-
dule overruns being seen on first-of-a-kind
builds. This provides us with highly expe-
rienced partners and hard-won construction
methodologies to help minimise the cost.
He notes that he is hopeful that the recent
downgrades are not a medium- to long-term
feature, and expects that financing will be
managed in the competitive procurement

Focus on future uranium

Materials: tech amid subdued price
Ferrous Non-Ferrous,
Composites, Plastics etc. WITH innovations in the extraction and appli- the Southern African Institute of Mining and
cation of uranium constantly being made, Metallurgy (SAIMM).
Tolerances:
the Uranium 2017 International Conference Considerations of how new technologies
Dimensional tolerances
will provide a platform for the discussion can assist with sustainable uranium extrac-
0,15mm-0,3mm
of advances in the industry and a forum for tion, lower energy costs and the reduced envi-
generating new ideas. ronmental impact of uranium mining will be
Benefits: Uranium as a material, and its applica- at the fore, says SAIMM.
Taper Free cutting
tions, are often controversial. Yet, nuclear SAIMM is hosting the conference in col-
No heat affected zones
No Distortion reactors are still being built, despite the laboration with the Canadian Institute of
Accommodate up to 4m x2m growth in energy generation through renew- Mining, Metallurgy and Petroleum, the
plate sizes able sources and despite highly publicised Namibian Uranium Institute and the Namibia
High Accuracy nuclear accidents. University of Science and Technology, from
Quick turn around times Several countries are pursuing uranium September 11 to 15 at the Swakopmund Hotel,
Free De-burring enrichment programmes. Although prices in Swakopmund, Namibia.
Free packaging are subdued, it is highly likely that there The event, themed Extraction and appli-
Free Drawing
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72 ENGINEERING NEWS | May 1218, 2017 EG

NUCLEAR ENERGY
process by each of the vendor countries.
South Africa has a well-established, func-
tional nuclear industry capable of launching
a build programme in partnership with an
international nuclear vendor country, Muller
says, adding that the local industries that
formed around the coal builds could also be
aligned to manufacturing and construction
opportunities on a nuclear build when ade-
quately prepared.
Muller reminds South African that a
nuclear build would be more a management
challenge than a technical challenge for our
industries, in what, in terms of scope and
quantum of job and career opportunities
across the supply chain, will also set a pre-
cedent for the rest of Africa.
Moreover, he mentions that the emphasis on
regional localisation, where possible, opens
up opportunities to all who have a product or
service to contribute to NPP licensing, pro-
curement, engineering, construction, com-
missioning, operations and maintenance,
which includes fuel and waste management
and eventual decommissioning.
Muller adds that all the vendors competing
for the nuclear new build, together with local
industry stakeholders and the International
Atomic Energy Agency (IAEA), are equipped
to manage the roll-out of a nuclear indus-
trialisation programme, which will include
uranium, safety and post-operations closure
and remediation issues.
Namibia is currently ranked the fifth-
largest producer of uranium in the world
and is set to become the second-largest
producer when uranium producer Swakop
Uraniums Husab mine, based 12km north-
west of the Husab mountain, in Namibias
Erongo region, becomes fully operational
later this year, making it a fitting location
for the conference.
Namibia is poised to become a major
uranium hub and the development of the
Husab mine will undoubtedly see the ura-
nium industry playing a more significant
role in the national and regional economies.
The conference will feature a programme
of presentations, short courses and techni-
cal visits.
Papers are welcome on topics such as
uranium mining, mineral and metallurgi-
cal processing, process control and optimi-
sation, refining and value-added products,
fuel cycle, nuclear/radioactive waste and site
reme diation, medical applications, safety,
health and environmental issues, corpo-
rate social responsibility and legislative and
policy issues.
Two short courses on nuclear medicine
EG
the transfer of knowledge and technology
where applicable. Considering South Africa
is a world-class industrial nation, this pro-
cess will be tough and protracted but is no
doubt achievable.
He does advise that there is a huge gap
between the present industrial quality and
safety cultures that are necessary in the
nuclear industry, which would need to encom-
pass the full supply chain including artisan
training, service providers and tertiary edu-
cation institutions and would require time
to be invested.
A number of our universities are already
delivering excellent results in postgraduate
education in nuclear sciences and engineer-
ing for peaceful applications, like energy
and nuclear medicine, where we are a global
player.
Further, he highlights that, while a nuclear
qualification and accreditation framework
exist, it will need to be scaled up to accommo-
date the demand from industry when State-
owned power utility Eskom and State-owned
nuclear company South African Nuclear
Energy Corporation (Necsa) start their build
programme.
Muller notes that, although the exact codes
and standards for the build will only mate-
rialise once the vendor country has been
identified, there is a lot of valuable ground
and radiopharmacy, and uranium process-
ing plant design will also be offered, and
are Engineering Council of South Africa
accredited for continuing professional deve-
lopment points.
In addition, technical visits to key sites
have been planned.
This will include the Husab uranium pro-
ject, which will become the second-largest
uranium mine in the world on completion
of commissioning, producing 7000t/y of
triuranium octoxide; British-Australian
multinational Rio Tintos Rssing uranium
mine, the longest running uranium mine in
the world and the third-largest opencast mine;
uranium producer Paladin Energys Langer
Heinrich mine; exploration and development
company Bannerman Resources demon-
stration plant; and a viewing of the geology
of the Alaskite mineralisation in the lower
Swakop river.
Swakopmund is the centre of uranium
extraction in the country, with most of
Namibias uranium mines located in the
Namib desert, within easy driving distance
of the town.
Post-conference visits to local operations
are planned.
ENGINEERING NEWS COUPON ON PAGE 82 E447161
that can be covered in benchmarking South
Africas industry against internationally
benchmarked local nuclear regulatory stan-
dards and requirements. This will be a
significant step forward toward being con-
sidered by the selected NPP vendor and its
technology partners.
He states that a few South African compa-
nies have already achieved these standards
and have been implementing them on the
Koeberg NPP and Necsas Research Reactor
with success.
Muller affirms that the anticipated nuclear
build programme has been strategically and
methodically progressed under the auspices
of the IAEA, which conducted an Integrated
Nuclear Infrastructure Review a 19 point
checklist which includes sections on licens-
ing, safeguards, funding and industrialisation
of South Africas readiness to implement a
nuclear build programme.
South Africa has the essential regulatory
structures, implementation authorities and
international support to initiate and mobilise
a viable nuclear build programme. This will
all come together and materialise into an
orchestrated industrial roll-out plan when the
vendor country has been selected and aligned
to the overarching objectives of the build pro-
gramme, Muller concludes.
ENGINEERING NEWS COUPON ON PAGE 82 E450611
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Expertise
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ENGINEERING NEWS | May 1218, 2017 73
OPINION&ANALYSIS
TECH TRACK
Hats off to Noakes
for standing up
for scientific truth
P
rofessor Tim Noakes has won his
confrontation with the professional
medical body over his stance that a
long projected option concerning the best
ratio for fats and carbohydrates in a persons
diet is not correct.
This whole Banting diet issue has been
very much in the news for a while now. Some
time ago, the Association for Dietetics in
South Africa (Adsa) laid a formal complaint
against Noakes at the Health Professions
Council of South Africa. Adsa accused
Noakes of unprofessional conduct after
he had apparently suggested on Twitter
that a mother wean her baby onto a low-
carbohydrate, high-fat diet.
Let me hasten to point out that I am not
a medic, so I am not claiming any profes-
sional medical knowledge. Also, let me
point out that I am not on any diet myself,
so I do not have a particular personal inter-
est in the issue.
However, I did sit through an hour-long
presentation given by Noakes some years ago,
and I did speak to him briefly afterwards, as
he was hastily getting ready to dash to the
airport. So, I could not discuss things for as
long as I would have liked.
What I can say is that I was impressed by
his presentation. I am a qualified scientist and
investigator, so I watched the presentation
very critically. I rapidly came out on his side.
Three things particularly struck me
with the presentation. Firstly, he already
had an impressive professional reputa-
tion, so the easiest thing for him would
have been to keep going with the flow
and he would have maintained his image.
But he did not. He said: I have been giv-
ing wrong advice for years and now I am
changing my position. That takes guts.
So, I figured that a fellow as sensible as
he is must be rather sure to make such a
dramatic public about-face.
The second point was that he showed
quite a few graphs and sets of data about
heart attacks and suchlike around the world.
That I am qualified to judge, because I know
the science and maths behind how such
74 ENGINEERING NEWS | May 1218, 2017
analyses are done.
Sadly, in medicine, one finds some of the
most inaccurate scientific findings presented
as fact. Medics are often not very good at
mathematical-type analysis. One of the most
prevalent errors is that correlations are pre-
sented as causality.
What this means is that just because two
graphs look the same does not mean that
they have any linkage. A friend of mine in
the US recently sent me a set of correlation
graphs that are intended to be silly to make
this point. For example, there are graphs of
the number of lemons exported from the US,
compared with the number of car accidents
in Texas, and the graphs seem to match.
Lemon exports do not influence car accidents
in Texas. Many medical results presented as
fact suffer from the same fault.
Many analyses that one sees in news-
papers and on TV discussions suffer from
the same fault. A famous one is the appar-
ent correlation between ozone quantity and
CFC gases in the Antarctic. Just because the
graphs look as if they are linked does not
mean that they are linked.
One finds that issues such as the heart
attack incidence is plotted against the
consumption of certain foods, and so on,
and then, just because the graphs look the
same in shape, people assume that, somehow,
they are linked. Noakes correctly pointed out
that they are not.
He showed cases of clearly inaccurate
medical conclusions concerning the carbo-
hydrates and fats issue in diets.
Let me make one up. If the shape of a
graph appears to show that people who eat
a lot of hamburgers die of heart attacks,
this does not mean that the hamburgers
cause the heart attacks. It could be that the
people do something else that leads to the
heart attacks, but they also then go and eat
a lot of burgers. For example, hamburger
eaters may also drink a lot of beer and may
not exercise much.
They may tend to largely live in small
inner-city flats, where there is little space
for exercise and the air is laden with exhaust
fumes. Thus, there
could be a number
of factors involved
i n why a g r a p h
m ay show t hat
hamburger eaters
tend to have more
heart attacks. So,
putting an extra
tax on hamburgers
would not alter the
Kelvin Kemm outcome.
S i m i l a r l y, I
believe that a sugar tax will make little dif-
ference to any obesity issue. It might even
kill some people who have extremely little to
eat and whose bodies rely on the little sugar
that they consume for survival.
The third thing that Noakes showed was
that well-meaning political decisions in the
US designed to feed the poor had the unin-
tended consequence of changing the eating
patterns of the whole population.
Such well-intended moves quite often
have unintended bad consequences. For
example, in a past US administration of
some 40 years ago, the President pushed
subsidies into food production because it
had been reported that many Americans
were going to bed hungry. Think about it:
What is the easiest way to take advantage
of a food subsidy? Do you produce more
cows for beef and milk, or more grains
for more breads and cereals? You cannot
easily make cows produce more cows, so the
bread and cereals win hands down. So, the
US diet swung in favour of the breads and
multiple other carbohydrates.
Overall, Noakes has shown the courage to
stand up for scientific truth. I wonder how
many of the dieticians who attacked Noakes
have actually done real scientific research
into this issue or if many of them are show-
ing a solidarity vote? If so, that is honour-
able to their buddies, but it is not science.
So, over the years, Noakes has shown that
he has the courage to say that he has been
wrong in the past. He has the scientific integ-
rity to go public and to explain the truth.
I am glad that the professional finding
went in his favour, but one wonders if this
is the end of the professional fight in public.
Behind the scenes, the professionals
should continue to have aggressive debate
on the topic.
Dr Kemm is a nuclear physicist and is CEO of Nuclear
Africa (Pty) Ltd as well as chairperson of the South African
Nuclear Energy Corporation. He sits on the board of
advisers of the Committee for a Constructive Tomorrow,
based in Washington DC. He is also a board member of
GoNuclear Inc and EFN: USA, both based in Colorado,
US exec@nuclearafrica.co.za
EG
OPINION&ANALYSIS
ELECTRICALLY SPEAKING
More about electric cars
I
n a previous instalment of this column,
I wrote about Mercedes-Benz going to
produce an electric car.
By this I mean the automaker is going
to produce a car for sale to the public that
will be 100% electrical in drive it will not
be a hybrid car with a generator that switches
on when needed to support the electric
motor and battery system. The car (now
available in the US) is a B-model Mercedes-
Benz and has a lithium-ion battery and a
132 kW motor. It sells for $40 000.
In an Internet post, the company says
the car does 85 miles to the gallon (elec-
tr ic). T h is is abbreviated as M PGe. I
quote f rom Wi k ip e d ia: T he M P G e
metric was introduced in November 2010
by the EPA (Environmental Protection
Agency) . . . the ratings are based on the
EPAs formula, in which 33.7 kWh (121
megajoules) of electricity is equivalent to
one gallon of [petrol].
So, we can assume that the vehicle does
85 miles/137 km for every 33.7 kWh con-
sumed. Let us say youre driving around
town, at an average speed of 60 km/h. After
2.3 hours, you have used 33.7 kWh.
So, we can more or less say that on the
average commute of 2.5 hours you are
going to go home having used 33.7 kWh.
And now you plug the car in. If we assume
that the lithium-ion battery charges up in
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Growth Engine
Dynamite GDP growth
comes in small private-equity
investment packages
DAVID OLIVEIRA
CREAMER MEDIA SENIOR STAFF WRITER
EVERY 0.01% increase in private equity
(PE) investment penetration into Africas
gross domestic product (GDP) would inject
an incremental $1.1-billion investment over
the next five years, providing a critical source
of growth capital to Africas commercial
sector.
This is according to a report by economic
advisory services provider The Economist
Corporate Network (ECN). The report, A
growth engine: Trends and outcomes of
private equity in Africa, notes that, last year,
PE investment was equivalent to 0.18% of
Africas GDP.
LO
60 minutes, you are going to have to take
about 100 kWh from your house supply
(more than the 33.7 kW you used since the
battery is not very efficient).
This is never going to work since the
supply to the house is not more than 13 kW,
so you have to change the charging time to
about seven hours. This is doable, if some-
what limiting if you want to pop down to
the pub, you will have to use the bakkie.
However, while the power supply to the
house is capable of supplying 13 kW, a group
of houses fed from one mini substation
has an average consumption (called the
after-diversity demand) of about 4 kW for
each house. Thus, if several houses are each
trying to draw 13 kW to charge electric cars,
then the supply at the miniature substation
to the group of houses will trip.
Getting back to that 132 kW motor . . .
really that size? To use 33.7 kWh in 2.5 hours,
the motor will only be running at an aver-
age of one-tenth of the rated power. Thus,
you cruise at 60 km/h on not much power.
What this means is that, when you pull up
at the traffic lights and the home boy racer
next to you gives it the beans, you can take
off in a cloud of molten rubber, silently,
leaving your man dazed and confused.
As one would expect from Mercedes-
Benz, it seems that the company worked
all the numbers. What is not worked out or
The report highlights that, from 2010 to
2016, general partners (GPs) raised around
$2.7-billion a year to invest in Africa-based
companies. Last year, while Africas GDP
grew at a sluggish 1.4%, GPs raised about
$2.3-billion, compared with the $2-billion
raised in 2014, when economic growth was
significantly higher and the commodity
cycle peaked.
Deals above $250-million accounted
for just under half of all funds invested,
amounting to $12.5-billion from 2010 to
2016. T he aver age si z e of dea ls con-
cluded by GPs during the period was about
$40-million, highlighting the key role GPs
play in Africas commercial ecosystem,
particularly in assisting relatively small
businesses to grow.
The report also found that investment by
GPs was focused on sectors serving Africas
growing consumer class. From 2011 to 2016,
about half of all investments were made into
consumer-serving sectors.
West, Southern and multiregion African
deals dominated GPs investments, account-
Merc e des-Ben z
does not seem to
be able to work out
is the seven-hour
charge restriction
as a result of the
limitations of the
municipal power
supply to a domes-
tic residence.
But then again,
Terry Mackenzie-Hoy if electric cars get
to be very popular,
perhaps they will be charged while people
are at work at special charging stations.
This sounds desirable but really is not
going to pan out because there is going
to be even more congestion in the cities
than at present. What is possible is for there
to be battery-change stations where you
pull up and they take the battery out and
give you another one. This does not seem
very likely, as it will require all electric
manufacturers to have the same sort of
battery, which, if we go by cellphones, is
not going to happen.
But, quite probably, it will be just simple
get home, plug the car in, crack open a
beer and watch television. Perhaps some
sort of local area system will communicate
with all electric cars charging such that the
miniature substation is not overloaded.
The whole area is a topic in which I have
much interest. I drove an Alan Cocconi
electric car in 1993. I have been waiting for
a long time for this.
Mackenzie-Hoy is a consulting acoustics and electrical
engineer machoy@iafrica.com
ing for 70% of deal value from 2010 to
2016.
GPs that are successful in the region
have a competence for helping investees,
par ticularly family-owned and closely
held businesses, to upscale and corpora-
tise, says ECN Africa director Herman
Warren.
The report notes that this differs from
the approach GPs tend to take in other
regions of t he world where t here may
be f ina ncia l engineer ing objectives
that can involve loading an investment
with debt, embarking on a cost-cutting
exercise and exiting an investment as soon
as possible.
However, the report found that GPs in
Africa tend to use relatively little debt to
fund transactions, with the general objective
in structuring Africa-based deals focusing
on equity capital raising, which is primarily
used to expand an investees footprint, and
invest in human capital and other resources,
as well as to improve strategy and governance,
to grow the enterprise.
ENGINEERING NEWS | May 1218, 2017 75
PEOPLEINCAMERA An exciting racing day at Kyalami
saw Gennaro Bonafede convert his
front row grid position into a
2.5 second victory in the first of two
Sasol GTC races at the Midrand
circuit. Bonafede raced a fast lap-
qualifying session but missed
pole position by seven-tenths of a
second. The team made some set-
up changes to Bonafedes car ahead
of the first race, which helped him
hang onto the coat-tails of Michael
Stephens Audi in the opening laps of About 72 university students in the transport, engineering
the race and built environment fields received the MasakhiSizwe Bursary
Awards in Cape Town. Western Cape Minister of Transport and
Public Works Donald Grant (centre) thanked all the parents and
guardians in attendance for showing their support for the new
bursars. I hope you will all continue to do so as these bursars
continue on what will undoubtedly be a challenging journey
towards attaining their academic qualifications

PEOPLE
Chief Justice
M o g o e n g
Mogoeng has
been elected
president of the
Conference of
C o nst itut i o nal
Jurisdictions of
Mogoeng Africa, a posi-
Mogoeng tion which gives
South Africans
even more cause to be apprecia-
tive of their democratic freedom.
Mogoengs election on April 27 in
Cape Town is a significant rec-
ognition of the Constitution and
the Constitutional Courts role
in strengthening the countrys
democracy and its system of
Ninzi-Connect was selected by US company Aspect to host its VP, checks and balances, and in safe-
Joe Gagnon (centre), on his extraordinary global challenge to run six guarding the fundamental rights
individual marathons on six continents on six consecutive days. It was of citizens.
his third marathon in three days, on three continents. He started his The presiding officers (Speaker
journey on April 10 in Sydney, Australia; from there, he travelled to of the National Assembly and
Singapore and landed in South Africa in the early hours of the April 12 Chairperson of the National
Council of Provinces) took the
oppor tunit y to c ongratulate
Mogoeng on his election.
Par liament s sp okesper son
points out that it is noteworthy
that this significant recognition
takes place during the year in
which Parliament is commemo-
rating and reflecting on the 20
years since the signing into law
of the Constitution, its mean-
ing and impact on the lives of
ordinary South Africans.
Australian com-
p a ny C e l s i u s
Resources
i s p l e as e d to
announce that
In honour of the Sun Duke of Edinburgh Cup, Tsogo Sun will Brendan Borg
be sponsoring the installation of a fully fledged Early Childhood has been
Development centre container an Edutainer at Diepsloot Primary appointed MD
School 4 at a cost of R471 000. Pictured are Diepsloot Primary School 4 of the company
principal Joe Makhafola, Tsogo Sun HR director Vusi Dlamini and Tsogo Brendan Borg to fast-track the
Sun GM Priya Naidoo with two learners
development of the Opuwo Cobalt
Project.
Borg is a highly respected consult-
ant geologist who has specialised
in the battery materials sector,
including lithium, graphite and
cobalt mineralisation, and partici-
pated in numerous successful
projects in an investment and/or
operational capacity.
He has played a key role in the
the Opuwo Cobalt Project and the
exploration conducted by Celsius
to date.
Borg has 20 years experience,
having worked in management,
operational and project develop-
ment roles in the exploration and
mining industries with mining com-
panies including Rio Tinto Iron
Ore, Magnis Resources, IronClad
Mining, Lithex Resources and
Sibelco Australia.
He is a director of geological con-
sultancy Borg Geoscience and of
a new energy minerals marketing
firm, Minemark.
I would also like to welcome Borg
to the board and congratulate him
on his appointment.
He is already a key part of the
team that has enabled drilling to
commence so rapidly following the
acquisition of the project.
We believe he is the ideal person
to unlock value from the Opuwo
Cobalt Project for our sharehold-
ers, says Celsius Resources
chairperson Bill Oliver.
Borg says he is excited to have
the opportunity to drive the com-
panys plans to rapidly evalu-
ate and potentially develop the
Opuwo Cobalt Project in an
environment of sustained global
demand for cobalt and other
battery-related minerals that
are key to the uptake of new
energy technologies.

76 ENGINEERING NEWS | May 1218, 2017 RA

OPINION&ANALYSIS
TRADE@WORK
Wealth taxation
in the spotlight
H
ave you read it yet? All 700
pages, that is. Well, if you have
not, acquire a copy. The book
in question was an Amazon number
one bestseller and also sold out in
major bookstores on its release. It
was all the range on its release on
March 18, 2014.
No, it is not one of the instalments
of the Harry Potter series, and neither
is it a book of fiction; well, some might
argue that its conclusions are. It is, in
fact, a book about economic inequality
written by a then little-known French
economist, and has been described as
being dense with data and historical
examples from France, including a few
literary references to Jane Austen. The
economist in question is Thomas Piketty
and the book is titled Capital in the
Twenty-First Century.
According to an opinion piece by
Tim Worstall, Piketty intended his
voluminous book to tell us two things:
firstly, that the concentration of wealth
is going to become greater, thereby
increasing inequality, and, secondly,
that something needs to be done about
this.
Worstall, however, remains uncon-
vinced by either of the arguments. Quite
tellingly, billionaire Bill Gates yes,
he of Microsoft told Piketty on CNBC:
I love your book. I care a lot about
inequality but I dont want to pay more
taxes. Gates, who is renowned for
giving a large part of his wealth to
charity, favours a progressive tax on
high consumption instead of net wealth.
The fame that the book brought
Piketty meant that he could travel the
world, and he did a number of whistle-
stops visits, including to South Africa,
during which he brought the message
of the imposition of a wealth tax.
In fact, he visited South Africa in
October 2015.
During his visit, Piketty reminded
his audience that South Africa is the
most unequal country in the world.
The top 10% earn 60% to 65% of the
income. In the US, by comparison,
their share is 40% to 50% and in Europe
AN
it is 30% to 35%. Even in Brazil, long
regarded as one of the most unequal
countries in the world, the income share
of the top 10% is 55% to 60%, and the
percentage is falling. Piketty said South
Africa is really at the top of the class,
so to speak.
According to the Davis Tax Committee,
the distribution of wealth in South Africa
is highly unequal, with recent empirical
evidence suggesting that the Gini coeffi-
cient for wealth is about 0.95 (compared
with the Gini coefficient for income of
0.67). The committee also contends that
it is well established that economic
inequality inhibits economic growth
and undermines social, economic and
political stability.
Now, the Davis Tax Committee
established by former Finance Minister
Pravin Gordhan in 2013 to inquire
into the role of the tax system in the
promotion of inclusive economic growth,
employment creation, development and
fiscal sustainability has called for
written submissions on possible wealth
taxes for South Africa. So, does South
Africa not already impose any wealth
taxes?
Well, in its analysis and research,
the Davis Tax Committee needs to
take recent domestic and international
developments into account, particularly
the long-term objectives of the National
Development Plan (NDP).
The committee should also take into
account broad tax policy objectives
(revenue raising to fund government
expenditure is the primary objective
of taxation) and social objectives,
like building a cohesive and inclusive
society, which can be partially met
through a progressive tax system and
the redistribution of resources.
So, do you have the answer to the
question relating to South Africa and
wealth taxes? According to the Davis
Tax Committees media release of
April 25, South Africa currently
imposes three forms of wealth taxation,
namely estate duty, transfer duty and
donations tax.
(If you are interested, the Davis Tax
Committee
published its first
and second estate
duty reports on
its website on
July 13, 2015, and
August 24, 2016.)
Want to venture
a guess about the
extent of the
revenue that is
Riaan de Lange collected through
wealth taxation?
According to the media release, the answer
is about 1% of tax revenue. If you are
knowledgeable about taxation, you might
question the absence of capital gains tax
(CGT). Although CGT is generally
considered a form of wealth tax, the
Davis Tax Committee has taken the
view that it is a form of income tax.
The Davis Tax Committee was
specifically requested by Gordhan to
inquire whether it would be appropriate
to introduce additional forms of
wealth taxation and the feasibility
of doing so.
As a consequence, the Davis Tax
Committee is inviting submissions by
May 31 on the desirability and feasibility
of the following possible forms of wealth
tax: a land tax, a national tax on the
value of property (over and above
municipal rates) and an annual wealth
tax. Based on the written submissions
received, this will be followed by a
workshop for oral submissions during
June.
The obvious question is: Who is
considered to be a wealthy person in
South Africa? I have written about
that in a previous column.
Worstalls take on this subject might
well provide you with food for thought:
Our problem is that a wealth tax can
either be set at a rate at which it can be
paid out of income, in which case its
not actually going to reduce wealth
disparity, or it will be set at a rate at
which rich people must liquidate their
portfolios to pay it, and if all rich people
have to do that, then who in heck can
they sell to?
Personally, I question how a delibera-
tion on wealth tax can even seriously
be contemplated in the absence of real
political change, for, in the absence of
political change, a wealth tax will not
alter economic growth or have an impact
on the overall tax burden.
This economic and trade-focused column is prepared by
Riaan de Lange riaan@tariffandtrade.co.za. The views
expressed in this column are the authors personal views
ENGINEERING NEWS | May 1218, 2017 77
NEWS&INSIGHT
SKILLS DEVELOPMENT They will also work with the firms

First Cohort
disputes, corporate and finance practices,
alongside partners and associates across
the firms international network, giving
them exposure to global clients.
Global law firm set to extend learnership programme to Joburg Jackson noted that the company chose
South Africa to launch the programme, as
MEGAN VAN WYNGAARDT | CREAMER MEDIA SENIOR CONTRIBUTING EDITOR ONLINE it has a solid talent pool from which to

G
lobal law firm Herbert Smith
Freehills (HSF) is set to extend
its innovative Alternative Legal
Services (ALT) business to Johannesburg.
The business will combine a mix of
legal expertise, process efficiency and
technology to handle high-volume or
document-intensive work more efficiently
and cost effectively for clients, and will be
housed at the firms existing Johannesburg
office.
The new team will initially be staffed
by about five lawyers and 20 legal analysts,
who will form the first cohort of the
firms new international legal learnership
programme (ILLP), which will launch
alongside the opening of the Johannesburg
ALT business.
Speaking to Engineering News, HSF
partner and ALT global head Libby
Jackson said the company was very
excited about recruiting team members
for its first 18-month ILLP, which will offer
up to 20 legal graduates the opportunity
for employment and work experience
through a structured programme.
We are looking for technically
excellent legal graduates who have the
capacity to work effectively as part of a
team and to learn quickly as part of our
innovative and fast-growing global ALT
team, she said.
HSF is seeking applications from
graduates with a strong academic record,
who are committed to investing in legal
and business skills training.
Successful candidates will have
excellent attention to detail, the ability to
review, analyse and organise documentary
and factual evidence, along with an aptitude
for learning and becoming proficient in
the use of leading-edge software and
information technology applications to
intelligently navigate large databases
and document management systems,
Jackson explained.
Participants in the ILLP will develop
client and commercial skills, increase their
technical capability and improve their
personal leadership qualities.
recruit and very good law schools.
Theres clear demand for this type of
learnership programme for legal graduates
in South Africa. When we engaged with
young legal graduates [here] recently, it was
clear that they would relish the opportunity
to develop their legal and commercial skills
through participation in our ILLP and
that, in tandem, HSF would be helping to
address the ongoing challenge of high youth
unemployment rates in South Africa, she
highlighted.
Looking ahead, HSF is planning a further
intake in 2018. The size of our second
intake will be determined partly by the way
in which our global ALT business evolves
over the next year, including the service
offerings our clients are seeking from our
ALT team, and also the way in which we
might refine the programme. HSF believes
graduates will complete the programme
with a deeper understanding of legal
processes and a stronger curriculum vitae,
thereby increasing their chances of securing
a candidate attorney position, or other roles
in the legal sector, in the future.

ECONOMY are increasingly looking to PORTS objectives and improve opera-

AfDB welcomes
Zambia, Ghana
to bond index
MEGAN VAN WYNGAARDT
CREAMER MEDIA SENIOR
CONTRIBUTING EDITOR ONLINE
THE African Development
Bank (AfDB) has added
Zambia and Ghana to its
African Bond Index (ABI),
expanding the index to the
eight most liquid sovereign
bond markets in Africa.
The ABI provides investors
with a tool with which to mea-
sure and track the performance
of Africas bond markets.
The composite index now
comprises the local currency
sovereign indices of South
Africa, Egypt, Nigeria, Kenya,
Botswana and Namibia, with
Ghana and Zambia joining this
month.
More African countries
domestic capital markets to
source much-needed financing
for economic development.
We expect to include more
countries to [the ABI] as soon
as reliable pricing information
is made available, said AfDB
financial sector development
director Stefan Nalletamby.
The ABI is managed in
collaboration with the African
Financial Markets Initiative,
which works to deepen the
continents local currency
bond markets, while creating
an environment where African
countries can access financing
at variable terms.
Meanwhile, in December,
the AfDB approved the
creation of the first African
multijurisdictional fixed-income
enhanced exchange-traded fund
the African Domestic Bond
Fund (ADBF) which will
track the performance of the
ABI. The ADBF is expected to
be launched in September.
TNPA appoints
new port managers
MEGAN VAN WYNGAARDT
CREAMER MEDIA SENIOR
CONTRIBUTING EDITOR ONLINE
TRANSNET National
Ports Authority (TNPA)
has appointed the Port of
Cape Towns first female
port manager, Mpumi Dweba,
who most recently served as
port manager at the Port of
Ngqura.
She succeeds Sipho Nzuza,
who recently resigned to take
up the role of eThekwini
municipality city manager.
TNPA has also appointed
Captain Vernal Jones as
the Saldanha port manager,
succeeding Willem Roux,
who resigned earlier this year.
TNPA noted that the
appointments would assist
in sharpening its focus on
the delivery of its strategic
tional efficiencies.
Meanwhile, former Mossel
Bay port manager Tandi
Lebakeng has been transferred
to the Port of Ngqura to succeed
Dweba. Lebakeng has been
with Transnet for more than
20 years and her experience
spans trade and logistics,
business strategy and planning
and development.
While these changes
temporarily leave the ports
of East London and Mossel
Bay with vacant port manager
positions, the roles will be
filled in an acting capacity
by port engineer, Alvin
Singama, in East London,
and senior operations manager
Shadrack Tshikalange, in
Mossel Bay.
The company also appointed
Jacqueline Brown, the
former East London port
manager, as executive manager
for capacity development and
enablement.

78 ENGINEERING NEWS | May 1218, 2017 AN

NEWS&INSIGHT
MARITIME SERVICES
Bunkering Hub
Eastern Cape sets sights on becoming Africas leading fuel
bunkering centre
MIA BREYTENBACH | CREAMER MEDIA STAFF WRITER
F
ollowing the successful introduction
of a deep-sea bunkering service off the
coast of Port Elizabeth, in the Eastern
Cape, the province has set itself the target of
becoming the leading bunkering stopover in
Africa, states Eastern Cape MEC for Rural
Development and Agrarian Reform Mlibo
Qoboshiyane.
The province is targeting liquid fuels,
including bunkering services and biofuels,
gas-to-power generation, the development of
commercial and industrial gas and [an] oil
rigs service industry. Our vision . . . is to
become the biggest bunkering service centre
on the continent, Qoboshiyane noted at the
South African Maritime Industry Conference
(SAMIC 2017), hosted in Port Elizabeth last
month.
He added that the province was pleased
with the progress made in the first offshore
bunkering services that started in May 2016,
stressing that it had also proved beyond rea-
sonable doubt that Nelson Mandela Bay was
one of the most suitable locations for off-
shore bunkering services.
The service has recorded phenomenal
CONTACT CENTRES
AI systems seen as key
to managing contact
centre as volumes rise
SCHALK BURGER
CREAMER MEDIA
SENIOR CONTRIBUTING EDITOR
USING artificial intelligence (AI) systems will
be necessary to effectively manage the volumes
of simultaneous customer interactions over
multiple contact channels in digital economies,
says instant messaging customer interaction
software developer Hi.guru strategic business
development consultant Nicholas OConnor.
AI systems that function as agent-assistance
systems or analytics engines are helping con-
tact centres to more effectively meet client
needs and resolve queries faster.
The evolution and broader use of such sys-
tems will continue to improve customer expe-
rience, he adds.
AI systems are used in contact centres to
support the productivity of the contact cen-
AN
growth from serving ten ships in May
2016 to 103 ships a month from January 2017,
Eastern Cape Premier Phumulo Masualle
noted when he delivered his State of the
Province address in Bhisho in February.
Qoboshiyane highlighted that these ser-
vices were also beginning to open other eco-
nomic opportunities in the entire value chain.
The Ngqura port is always hosting three
oil rigs at any given moment, thereby confirm-
ing it as the most strategic location for oil rigs
repair, he said.
T he South A fr ica n Ma r itime Sa fety
Authority is conducting a study to assess
the economic contribution and employment
opportunities created by the offshore bun-
kering industry in the Nelson Mandela Bay
metropolitan municipality. It will also map
out industry value chain activities that provide
potential for beneficiation by the local industry.
There are also plans for a gas pipeline link-
ing a new terminal in the Port of Ngqura to
State-owned gas-to-fuels company PetroSAs
Mossgas refinery, in Mossel Bay, in the
Western Cape.
Qobosh iya ne f u r t her noted t hat t he
tre and determine the flow of work and sales.
The higher speeds of analysing the work-
ings of a contact centre will allow for better
and more immediate management to reduce
inefficiencies and tackle challenges.
While contact centre employees are
often expected to offer sympathy and cour-
teously handle difficult clients, the main
purpose of any call centre is to effectively
resolve queries and complaints as quickly as
possible.
Therefore, AI systems that improve this
such as AI systems that gather information
during client conversations across multiple
channels, including during a voice call, and fill
out forms or trigger relevant processes using
the information provided by the client boost
the efficiency of contact centres.
However, AI systems are not homogeneous
or broadly applicable and are used to perform
many different specific and niche functions.
Therefore, it is important to consider the
different scenarios in which AI can assist
contact centre agents, optimise the customer
engagement environment and make the
processes more efficient, says oConnor.
commitment by the national government to
allocate 1000 MW of gas-to-power genera-
tion at the Coega Industrial Development Zone
(IDZ) was warmly welcomed.
The Department of Economic
Development, Environmental Affairs and
Tourism (DEDEAT), in partnership with
Nelson Mandela University, is in the advanced
stages of baseline studies on the shale gas
potential in the Karoo and other parts of the
province, he said.
Meanwhile, the DEDEAT has completed a
detailed business case for gas-to-power gener-
ation at the Coega IDZ. Governments expec-
tations include a floating system for liquid
natural gas (LNG) transfer, allocation of the
1 000 MW plant and 35% local beneficiation
from the R25-billion investments, as well as
the opening of opportunities for smaller indus-
try players, Qoboshiyane pointed out.
He suggested that these initiatives placed
the Coega IDZ and the Ngqura port in a bet-
ter position for an LNG industry and gas-to-
power generation.
In addition to the proposed pipeline from
Ngqura to Mossgas, the Department of
Economic Affairs is also exploring the estab-
lishment of a pipeline to the East London
port for LNG to supply the industry around
the Buffalo City Metro and the Wild Coast
Special Economic Zone. The gas-to-power
generation industry is gearing up to create
8 500 jobs during construction as well as
300 permanent jobs, with more jobs expected
to be generated from downstream industries,
Qoboshiyane concluded.
ENGINEERING NEWS COUPON ON PAGE 82 E450900
Typically, AI systems help contact centres
to generate more revenue or to save money.
While the development of AI chatbots auto-
mated contact centre agents that can handle
basic queries are still in the early stages, the
main use of AI will be to empower customer
engagement agents and customer experience
management agents.
Hi.guru does not see AI as a threat to
contact centres. Conversely, it foresees a
growing need for better and faster contact
centres and customer engagement to support
increasingly digital businesses and business
models.
AI systems will help companies to improve
customer experiences, which are key to cus-
tomer attraction and retention in digital busi-
ness models.
They will be increasingly crucial to unify
digital business processes, customer self-help
services and companies employees.
OConnor advises companies investigating
AI systems to apply them selectively to address
specific problems in their contact centres and
in their customer engagement processes.
ENGINEERING NEWS COUPON ON PAGE 82 E451015
ENGINEERING NEWS | May 1218, 2017 79
WHATSON For more information visit www.engineeringnews.co.za/whatson

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Tel +27 87 890 0898, www.sacoalprep.co.za. www.financial.mikonoexpogroup.com.
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www.totallyconcrete.co.za. Water Treatment Plant Operations, HEALTH
Johannesburg, East Africa Working Mother Expo,
Cape Construction Trade Expo, July 1921, 2017, Tanzania,
Cape Town, August 45, 2017,
Tel +27 11 052 4564,
August 1516, 2017, Tel +2557 1710 9362,
Email events@nes-africa.com,
Tel +27 87 890 0898, Email sales@mikonospeakers.com,
www.bizcommunity.com/Event/196/500/47013.
Email tamsin.collins@construction-week.com, www.mothers.mikonoexpogroup.com.
www.cape-construction.co.za. TECHNOLOGY
HOSPITALITY & TOURISM
SAPICS Conference and Exhibition,
Advanced Course in Construction Contracts, East Africa Tourism and Hospitality
Cape Town,
Pretoria, Conference and Trade Expo,
June 47, 2017,
August 1417, 2017, Tanzania,
Tel +27 11 023 6701,
Tel +27 12 434 2500, September 2930, 2017,
Email info@sapics.org.za,
Email info@enterprises.up.ac.za, Tel +2557 1710 9362,
www.bizcommunity.com/Event.
www.bizcommunity.com/Event/196/494/46711. Email sales@mikonospeakers.com,
www.tourismandhospitality.mikonoexpogroup.
INTERNATIONAL com.
ENVIRONMENTAL
Pollution Waste Africa, CONSTRUCTION
Johannesburg,
INDUSTRIAL
Dar Construction Trade Expo 2017, International Machinery & Equipment Expo,
June 68, 2017, Tanzania, Nairobi,
Tel +27 11 549 8300, August 1718, 2017, September 2628, 2017,
Email info@pollutionwasteafrica.co.za, Tel +2557 1710 9362, Tel +44 20 7384 8017,
www.pollutionwasteafrica.co.za. Email sales@mikonospeakers.com, Email russell.hughes@clarionevents.com.
www.construction.mikonoexpogroup.com.
Biocontrols Conference and Expo,
MINING, EXPLORATION
Cape Town, East Africa Smart Building Summit 2017, & SERVICES
July 1213, 2017, Tanzania, ALTA 2016: Nickel-Cobalt-Copper, Uranium-
Email LFitzgerald@meistermedia.com, August 1718, 2017, REE and Gold-PM Conference and Exhibition,
www.bizcommunity.com/Event/196/358/48003. Tel +2557 1710 9362, Western Australia,
Email sales@mikonospeakers.com, May 2027, 2017,
INDUSTRIAL www.construction.mikonoexpogroup.com. Tel +61 03 9894 7420,
IFSA 2017, Email allisontaylor@altamet.com.au,
Johannesburg, ENERGY www.altamet.com.au.
October 45, 2017, Mastering Renewable and Alternative
Tel +27 82 537 1413, Energies, Minerals, Metals, Metallurgy & Materials,
Email info@ifsaconference.co.za, Singapore, New Delhi, India,
www.ifsaconference.co.za. November 2023, 2017, August 2931, 2018,
Tel +65 6325 0351, Tel +11 6629 5700
Connected Industries Conference, Email vincs@infocusinternational.com, Email ed@itei.in,
Johannesburg, www.infocusinternational.com/renewable. www.mmmm-expo.com.
June 68, 2017,
Whats On serves to inform readers of seminars, conferences and exhibitions taking place in both the local and the
Tel +27 11 549 8300,
international sphere. Each item is listed according to the crucial aspect of the event. Fax details to (011) 622 9350, or
Email info@connectedindustries.co.za, email: whats-on@engineeringnews.co.za three weeks before publication. Please include details concerning the nature of the
www.connectedindustries.co.za. event, the venue (city and country), the dates and a contact number.

80 ENGINEERING NEWS | May 1218, 2017 AN

NEWS&INSIGHT
From page 19
Another hybrid form of storage that
could be used in future at the EAC is the
use of surplus for powering an existing fleet
of ten electric vehicles (EVs), including
BMWs i3 and Nissans Leaf. EVs on
campus are powered through numerous
charging points. He says that, in addition
to storage in battery-based devices
classified as power-to-power storage the
EAC is also pursuing power-to-gas storage,
currently a global megatrend. This will
entail the EAC installing an electrolyser,
which will use surplus electricity to
produce gases and fuels. The EAC plans
to use an electrolyser to produce hydrogen,

Picture by Dylan Slater

which is planned for use in a future fleet
of hydrogen fuel cell cars.
Simelane says the electrolyser concept
can be taken a step further, as the hydrogen
gas generated can be put through a reactor
to produce other fuels, such as methanol.
We are looking at the best electrolyser
that we can deploy. It will be a small one
as a pilot project, he says.
Overall Efficiency Drive
A further initiative which forms a key
aspect of reducing the carbon footprint
of the CSIR Pretoria campus is an
overall reduction in energy consumption
using demand-side management and
SURPLUS STORAGE
Sengiphile Simelane with one of the CSIRs BMW i3s powered by surplus energy from the solar
photovoltaic plant on campus
demand-shaping protocols. Demand-side
management is envisaged to regulate
equipment and processes that consume
large volumes of power on campus,
while demand shaping is critical to
managing peak demand. This will
manage equipment that uses a lot of
energy to fall in line with periods when
electricity is cheaper or more readily
available as well as smoothing out peak
consumption periods, Simelane says.
An energy audit is being conducted
throughout the CSIR Pretoria campus
to assist the institution in understanding
where savings can be made and how to
adjust processes to reduce spikes in
consumption during peak times.
ENGINEERING NEWS COUPON ON PAGE 82 E450370

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DATE OF EDITION 12/05/2017

The magazine that brings results

82 ENGINEERING NEWS | May 1218, 2017 LO

NEWS&INSIGHT
CYBERSECURITY

Network Threat
STORY HIGHLIGHTS
Fileless in-memory malware targeting ATMs has
been detected in 40 countries in the Middle East,
Africa and Turkey.
The malware can only be detected in RAM, and

Banks warned of ATMs being infected remotely by malware network and registry logs.

becoming critical to the analysis of malware

SCHALK BURGER | CREAMER MEDIA SENIOR CONTRIBUTING EDITOR
and its functions, says Kaspersky Lab principal

C
ybersecurity multinational Kaspersky
Lab has cautioned banks in the Middle
East, Africa and Turkey to check
random access memory (RAM), network and
registry logs to determine whether the fileless
ATMitch malware is present.
The ATMitch uses in-memory malware
to infect banking networks. This malware is
remotely installed and executed on an ATM
from within the target bank through remote
administration tools of ATM machines, says
Kaspersky Lab senior security researcher
Amin Hasbini.
After it is installed and connected to the
ATM, the ATMitch malware communicates
with the ATM as if it is legitimate software.
This makes it possible for attackers to carry
out a list of commands such as collecting
information about the number of banknotes
in the ATMs cassettes. Further, criminals can
dispense money at any time from the infected
ATM at the touch of a button.
Usually criminals start by getting infor-
mation on the amount of money an ATM
dispenser has. After that, a criminal can
send a command to dispense any number of
banknotes from any cassette. An ATM robbery
like this takes seconds. Once an ATM is
robbed, the malware deletes its traces.
The investigation started after a banks
forensics specialists recovered and shared
two files containing malware logs from the
ATMs hard drive (kl.txt and logfile.txt) with
Kaspersky Lab. These were the only files
left after the attack. It was not possible to
AMIN HASBINI
ATMitch uses in-memory malware to infect
banking networks and is remotely installed and
executed
recover the malicious executables because
cybercriminals had wiped the malware after
the robbery.
After the attack, criminals may wipe all
the data that could lead to their detection,
leaving no traces.
To address these issues, memory forensics is
security researcher Sergey Golovanov.
As this case proves, a carefully directed
incident response can help to solve even well
prepared cybercrime, he highlights.
We advise organisations to check their
systems, keeping in mind that detection of
such an attack is possible only in RAM,
their network and registry logs. In such
instances, the use of Yara rules based on a
scan of malicious files are of limited use and
comprehensive security software is advised
to prevent such attacks, emphasises Hasbini.
Kaspersky Lab has registered attacks in
more than 140 enterprise networks in a range
of business sectors.
Infections have been registered in 40
countries, including in Turkey, Saudi Arabia,
Iran, Libya, Pakistan, Tunisia, Morocco,
Egypt, Kenya, Uganda, Congo and Tanzania.
ATMitch cases have been reported in just two
countries to date, but the attackers might still
be active.
Combatting these kinds of attacks requires
a specific set of skills from the security
specialist guarding the targeted organisation.
The successful breach and exfiltration of data
from a network can only be conducted with
common and legitimate tools, says Golovanov.
Further information on the ATMitch
malware Yara rules for forensic analysis of
the fileless attacks can be found in the two
blogs on Securelist.com. Technical details,
including Indicators of Compromise have
also been provided to customers of Kaspersky
Intelligence Services.
ENGINEERING NEWS COUPON ON PAGE 82 E451021

INFORMATION TECHNOLOGY compelling market participants The enthusiastic adoption of

South African telcos broadening to gauge market trends and

ICT services portfolios
SCHALK BURGER
CREAMER MEDIA SENIOR
CONTRIBUTING EDITOR
SOUTH African telecommuni-
cations providers are pursuing
mobile-data-driven diversifica-
tion strategies that are creating
growth opportunities for the
industry and are bolstering their
information and communication
technology (ICT) services port-
folios, Frost and Sullivans
South African ICT Outlook
2017 study published in April
reveals. Growing adoption of
the latest technology business
models by companies is
attracting significant investment
into the South African ICT
industry. Aggressive service
diversification, along with
strategic partnerships and
acquisitions, are altering
the industry landscape and
growth opportunities before
designing their services.
ICT companies are creat-
ing new revenue streams
through software-defined data
centres, flash storage, cloud-
based mobile applications
(apps), noncore outsourcing
and business intelligence,
says Frost & Sullivan digital
transformation senior research
analyst Deepti Dhinakaran.
Nonvoice services, especially
mobile data (3G and 4G), will
drive market growth in 2017, he
adds.
end-to-end Internet of Things
(IoT) solutions has encouraged
telecommunications providers
to introduce mobile app-based
services. Successful mobile
apps, such as ride-hailing and
mCommerce apps, are accelera-
ting the overall revenue growth
of the industry.
Further, backup and disaster
recovery services will be the
fastest-growing segment in
2017, driven by the need to
ensure business continuity.
The study also predicts a
significant increase in demand
To page 85

RA ENGINEERING NEWS | May 1218, 2017 83

NEWS&INSIGHT
ECONOMY
Adverse Developments
Political decisions, downgrades push policy uncertainty
into negative territory
ANINE KILIAN | CREAMER MEDIA CONTRIBUTING EDITOR ONLINE
T
he North-West University (NWU)
School of Business and Governances
Policy Uncer ta inty Index (PU I)
increased to 51 in the first quarter of this year,
putting it in negative territory.
The PUI was at 38.8 in the fourth quarter
of 2016. An increase to above 50 reflects
heightened policy uncertainty, while a score
below 50 indicates reduced uncertainty.
The removal of former Finance Minister
Pravin Gordhan and the way in which the
Cabinet reshuffle has generally been handled
has had a negative impact on markets and
investor confidence, NWU school of business
professor Raymond Parsons said at a media
briefing in Johannesburg last week.
He added that the global economic outlook
the national Budget and the economic impact
of political decisions, along with the credit
ratings downgrades by S&P Global Ratings
and Fitch, were the main contributors to
84 ENGINEERING NEWS | May 1218, 2017
the spike in the PUI.
The risk of another investment downgrade
in June has also risen in the aftermath of the
Cabinet reshuffle. The recent concerns of the
credit ratings agencies about the economy
have revolved around market doubts generated
by the removal of Gordhan from his post,
Parsons said.
He noted that the financial markets and
credit ratings agencies would also expect to
see conservative fiscal policies still being
followed and the antipatronage stance taken
by Gordhan being upheld.
Parsons added that governments ambitions
for radical economic transformation was
another source of uncertainty for investor
confidence.
No one really knows what is being referred
to when you throw around those terms. It is
mentioned in conjunction with land reform and
the nationalisation of mines and banks. We all
agree that the economy has to be transformed
the question is how, and in what way, he said.
Parsons stated that priorities needed to be
highlighted and that there had to be a blue-
print outlining steps that had to be taken to
ensure transformation something that was
still lacking.
He highlighted that there were fears and
suspicions that fiscal probity would become
a victim of political factionalism.
The danger is also that the credibility of
the National Development Plan will be put at
risk, he said.
He said the onus would be on Finance
Minister Malusi Gigaba to win the confidence
of both foreign and domestic investors by
following policies and making decisions
which were clear, ethical, consistent and
growth-orientated.
Parsons added that the risk of the South
African economy moving into a recession
had increased and that the countrys growth
rate this year would probably be below 1%,
noting that policy uncertainty had inevitably
risen, which was not helpful in encouraging
the private fixed investment that South Africa
needed to grow more rapidly.
The damage to trust and confidence
in these important relationships will need
to be repaired if South Africas economic
performance is to continue to successfully
mobilise collaborative effort, he said.
RA
NEWS&INSIGHT
INNOVATION T he labs sha re innovations between

Solutions Hub
them and will improve technology sharing
from around the globe, like manufacturing
t e c h n o l o g i e s f r o m G e r m a n y o r I oT
technologies from Dallas, emphasises Du.
Huaweis SA OpenLab to focus on safe city, smart grid solutions The lab is an open, flexible, resilient and
secure platform where we can cooperate and
build solutions for the ecosystem that help
SCHALK BURGER | CREAMER MEDIA SENIOR CONTRIBUTING EDITOR
customers to achieve higher commercial

I
nformation and communication technology
(ICT) multinational Huawei has launched
an OpenLab in South Africa that will focus
on safe city and smart grid technologies,
says Huawei South Africa deputy CEO
Alex Du.
The research and development laboratory
is one of seven Huawei OpenLabs that
will be opened this year and will provide a
formal environment for Huawei to work with
various industry partners in South Africa
to create innovative solutions and promote
the development of a robust information
technology ecosystem.
The Huawei Johannesburg Open Lab
will focus on the development of advanced
analytics for police and power grid operations,
as well as on power-related Internet of Things
(IoT) systems and the integration of Huaweis
com munication module into local smart
meters.
The laboratories are open because a
co-creation and revenue sharing model will be
used. Products and services will be developed
and distributed in collaboration with other
industry partners, he explains.
The OpenLab programme is aligned with
Huawei Enterprise Business Groups Platform
and Ecosystem strategy and is centred on
collaborating with partners and customers
to develop innovative, differentiated and
leading industry-specific solutions that enable
open, elastic, flexible, and secure platforms
to drive enterprise digital transformation,
he explains.
STORY HIGHLIGHTS
Huawei launches its South Africa OpenLab, which
will provide a platform for cooperation with industry
partners and clients to develop new and innovative
solutions.
The OpenLab is part of Huaweis international
ICT ecosystem strategy that aims to bolster the
broader ICT environment and adoption of digital
systems.
Huawei Enterprise Government and Public
Utility Sector, Global Industry Solutions
department VP Edwin Diender emphasises
t h at t he O p en L a b leve r age s ex ist i ng
partnerships and initiatives, such as Huaweis
work to provide municipalities with safe city
systems, and encourages the formation and
development of new partnerships.
The laboratory will test and customise
a broad range of solutions, such as the
multimedia image sharing system being
developed for emergency services, under
the umbrella of safe cities and smart grids.
Making cities safer will lead to smarter cities,
but safety is, and should be, the first priority,
he says.
The OpenLab will also facilitate the faster
adoption of technologies by many public and
private organisations in various applications,
owing to the availability of best practice
standards and proven successful uses.
This will also help government organisations
to digitally transform themselves, and
accelerate the broader e-government shift,
he adds.
success.
It will facilitate a digital transformation
ecosystem to support the implementation of
joint innovations and expand the ecosystem
in terms of industry alliances, business
alliances, developer platforms and open-source
communities, says Du.
We hope the Huawei OpenLab will create a
new model for joint innovation. Subsequently,
we would like to invite partners to work
together with Huawei in this initiative, says
Huawei Enterprise Business Group Southern
Africa energy sector director Stan Qiu.
Huawei will provide the data centre
facility, hardware and software infrastructure
and technical team, while the partners
will contribute ideas, products and human
resources.
By working together, we can enable new
ideas to be verified more quickly, allow for
more agile industry innovation and more
efficient proof of concepts creation.
The ultimate goal is to transform the lab
into a customer experience centre and generate
more opportunities for all ecosystem players,
he adds.
Huawei is committed to cooperating with
its customers and partners in building ICT
platforms featuring Cloud, Pipe, and Device
collaboration to create symbiotic, vibrant and
sustainable ecosystems.
Huawei will continue to work with its
part ners to explore new ways to address
digital transformation challenges in the new
ICT era.
ENGINEERING NEWS COUPON ON PAGE 82 E451035

From page 83
for managed network and appli-
cation security services in 2017.
Meanwhile, government and
the public sector, the trans-
portation and logistics sector,
and utilities will use Big Data
analytics to a large extent in
2017, says Dhinakaran.
Further, despite the shutdown
of mobile money services,
technological advances in
digital banking and payments
are likely to transform the
market this year.
This will drive the value
of South Africas total digital
payment transactions to
$10.1-million during this year.
Most enterprises will
increasingly look to outsourcing
services to managed service
providers to benefit from
improved efficiency of IT opera-
tions and cost savings, and
adopt a proactive approach to
maintenance.
The need for vertical-specific
knowledge will compel business
process management (BPM)
providers to reinvent or realign
their service delivery models,
instead providing more face-to-
face consultative engagement
instead of offering one-time
service over a voice channel.
The telecommunications,
insurance and financial services
industries will be the largest
consumers of analytics services
to improve their operational
efficiency through a proactive,
problem-solving approach.
The convergence across
telecommunications and
entertainment markets, com-
bined with the growing uptake
of managed services, software-
defined wide-area network
technology, and consultation-
driven BPM service delivery
models will propel market
growth, notes Dhinakaran.
In the managed services
segment, there will be greater
demand for network and appli-
cation security services due to
the need to improve compliance
and security efficiencies.
Additionally, challenging
economic conditions charac-
terised by continued weaken-
ing of the rand and a grim
recovery outlook are expected
to continue this year.
This will make ICT exports
cheaper, while enabling the
domestic outsourcing industry
to establish itself as a cost-
effective outsourcing destina-
tion, concludes Dhinakaran.
ENGINEERING NEWS COUPON ON PAGE 82 E451018

RA ENGINEERING NEWS | May 1218, 2017 85

BUSINESSLEADER Full Name: Gladys Mawoneke
Position: CEO of Breva Beverages
Main Activity of the Company: Breva Beverages is a manufacturer,
marketer and wholesaler of alcohol-free beverages for adults
Date and Place of Birth: July 31, sometime in the 1970s, in Zimbabwe
Education: MBL, University of South Africa School of Business
Leadership; LLB; BA; diploma in journalism
First Job: I was a writer for a lifestyle magazine for a month before my
mother told me to resign because I was unhappy and miserable
Career History Prior to Current Position: I started off as a journalist
and then became an attorney. Prior to founding Breva Beverages, I
worked for British American Tobacco South Africa as an attorney. I
joined the organisation after university as a management trainee. I
worked in its corporate affairs and legal departments before I left to
find my music
Size of First Pay Packet: Z$600 a month, in 1992. I had hoped to
earn Z$1 200 but my boss deducted half that amount. When I told my
mother how unhappy I was, she told me to quit. In South Africa, my first
pay packet, in 1999, was R6 400 a month
First Job with Present Group: Founder and CEO
Number of People under Your Leadership: Seven permanent
employees and lots more to whom we outsource various services
Management Style: A combination of affiliative, democratic and
coaching
Personal Best Achievement: Going to university as a mature student
Professional Best Achievement: Developing Breva and launching it
in Woolworths and Pick n Pay
Person Who Has Had the Biggest Influence on Your Life: My father,
who taught us to be entrepreneurial and to dream big
Person Who Has Had the Biggest Influence on Your Career: My
mothers younger sister, who went to university in her late forties; when
I saw her do that, I knew that I, too, had to go to university
Person You Would Most Like to Meet: Indira Nooyi, CEO of Pepsi
Businessperson Who Has Impressed You Most: Indira Nooyi
Philosophy of Life: What is the worst that could happen? If they say
no, I will be in exactly the same situation as before, but if they say yes,
I will be in a better position
Biggest Ever Opportunity: Having Breva listed in Woolworths and
Pick n Pay
Biggest Ever Disappointment: Being turned down for funding by the
Industrial Development Corporation in 2012

Gladys
Hope for the Future: That Breva becomes a household global brand
Favourite Reading: The Tipping Point, by Malcolm Gladwell
Favourite TV Programme: Ina Gartens cooking shows
Favourite Food/Drink: Breva, with any meal

Mawoneke
Favourite Music: Gaither Vocal Band
Favourite Sport: Swimming
Favourite Website: vogue.com
Hobbies: Cooking (and, thereafter, eating what I would have cooked),
reading and swimming

Breva Beverages
Car: Volvo
Pets: None
Miscellaneous Dislikes: Pettiness and arrogance
Favourite Other South African Company: The now defunct
Mallinicks Attorneys, for its soul, which Gerald Mallinick brought to the
firm
Favourite Foreign Company: Heineken
Married: Single but open to persuasion
Children: None yet
Copyright Creamer Media (Pty) Ltd MZ Clubs: None

SOUTH AFRICA
New ENERGY ROUNDUP
Report APRIL 2017
Available ORDER YOUR ELECTRONIC COPY FROM CREAMER MEDIA E-COMMERCE
www.creamermedia.co.za Tag reader (www.gettag.mobi)

86 ENGINEERING NEWS | May 1218, 2017 LO

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