Views
3 years ago

Opportunity - Issue 94

  • Text
  • Logistics
  • Nemesis
  • Economic
  • Prices
  • Global
  • Operations
  • Procurement
  • Railway
  • Pandemic
  • African
Quarterly journal for business and industry in South Africa Business unusual It has been estimated that the economy will take two to three years to recover from Covid-19 and the subsequent economic collapse. From now to there, the journey will indeed be business as unusual. My pledge, as the new editor of Opportunity magazine, is to provide cutting-edge content that guides our readers on how to rise above the current business trajectory and to circumvent the consequences that are now laid before them. In this issue, Mike Townshend from Foord Asset Management writes, in ‘The evolving politics of oil’ (page 8), that oil has caused wars, assassinations, man-made disasters, coups and still affects every person in the world today. On page 10, Rebecca Major from leading global law firm, Herbert Smith Freehills, shares her insight on how to navigate African oil and M&A deals in these volatile times. Both of these writers will present more on these topics at Africa Oil Week. The transport services sector has been severely affected by the pandemic, but help is at hand. Digital transformation is set to disrupt the sector – technology has transformed the railway industry globally and implementing technological innovations could be a game-changer for rail transport in South Africa. Read more on page 17. Celebrating Women’s Month in August, Opportunity interviews the newly appointed CEO of Petroleum Agency South Africa, Dr Phindile Masangane (page 12), as well as founder and owner of Nemesis Accounting, Shani Naidoo (page 14). The South African Chamber of Commerce and Industry (SACCI) has a pivotal role to play in guiding the business of its 22 000 members. The Chamber believes that businesses should actively engage in the strategic and recovery implementation processes towards inclusive growth – read more in the CEO’s message on page 4. Let’s work together in building a resilient, risk-savvy and formidable nation. Alexis Knipe, Editor

TRANSPORT PASSENGER

TRANSPORT PASSENGER EXPERIENCE IMPROVEMENT The passenger experience is formed at each step of the journey – from planning a trip and booking a ticket to travelling to the railway station, arriving at the station, and travelling on the train. Technology can affect each stage of the experience. Seamless availability of information for planning, omnichannel ticket booking, smart railway stations, value-added services such as Wi-Fi and infotainment, and accurate train tracking based on GPS are just a few examples of ways that technology can enhance the passenger experience. b) For signalling-related interventions, invest in the European Train Control System (ETCS) level 2 for high-density routes to increase network capacity and maintain the required safety standards. c) For rolling stock, fast-track the switch of passenger rolling stock to Linke Hofmann Busch (LHB) coaches to minimise fatalities. d) Increase view of personnel with interior and exterior locomotivemounted video surveillance to improve monitoring. 2 | INFRASTRUCTURE UPGRADES Three recommendations can lead to faster and more robust infrastructure upgrades: a) Invest in track-laying machines for mechanisation of construction. b) Increase the rate of electrification through machines such as the self-propelled overhead electrification laying train (SPOLT). c) Proliferate use of prefabrication for construction elements. 3 | TRAIN OPERATIONS EFFECTIVENESS Four recommendations are designed to increase asset availability and utilisation: a) Invest in technologies such as complete train scanners for improved diagnostics and maintenance. b) Use operations optimisation tools for better management and performance of trains, rakes, locomotives and crews. c) Digitise processes to enhance work quality and lower costs, thereby reducing reliance on labour-intensive processes. d) Use distributed power to improve the efficiency of train operations with coordinated acceleration and deceleration. ORGANISATIONAL CAPABILITY ENHANCEMENT Technology can have a powerful impact on an organisation’s capability through effective training and assisting in decision-making. With the introduction of virtual reality (VR) and gamification that can simulate real-life scenarios, training has been revolutionised. IT dashboards and management information systems have been used extensively across industries to enable data-driven decision-making. In a recent joint report by the Federation of Indian Chambers of Commerce and Industry (FICCI) and American global consulting firm, Kearney, they aimed to analyse the technology solutions and best practices used by global rail systems to understand how Indian Railways can improve the effectiveness of its operations. These solutions and practices can also be used in a South African context. The solutions are structured across the five dimensions mentioned above. Following are some of the study’s key insights and recommendations across these dimensions: 4 | PASSENGER EXPERIENCE IMPROVEMENT To retain the passengers that the railway carries, enhancing the passenger experience will be crucial: a) Establish smart railway stations by implementing access control at entry points, provide accurate real-time information, and put interactive solutions in place. b) Upgrade the ticketing experience with seamless integration across platforms and open-loop smart cards. c) Enhance the train experience with services such as infotainment and app-based systems. 5 | ORGANISATIONAL CAPABILITY ENHANCEMENT Two recommendations aim to enhance capability and improve management reporting: a) Use training simulators and virtual reality training systems to improve personnel capabilities. b) Enhance decision-making by improving information management with management reporting dashboards. 1 | SAFETY ENHANCEMENT Four recommendations focus on achieving zero fatalities: a) For track-related interventions, introduce B-scan ultrasonic rail flaw detection (both non-stop and stop-and-verify systems) and track inspection with automated high-speed test trains. Implementing these technology solutions will be essential for rail transport in South Africa to get closer to the world-class standard for train operations. However, selecting and implementing technology as well as obtaining the optimum economic benefits will require adopting innovative procurement models. www.kearney.com 18 | www.opportunityonline.co.za

SeaRail is a logistics company that operates a 3.6-hectare Dry Port facility in Walvis Bay, Namibia, located within the boundaries of the Port of Walvis Bay (known as Namport). ONE-STOP SHOP | SeaRail offers an integrated portfolio of services that position it as a one-stop shop for various logistics needs. The aim is to provide clients with total logistics solutions. CONNECTIVITY | Corridors leading to and from the port are safe and have well-maintained roads. OUR VISION | To be the leading provider of transport and logistics solutions for importers and exporters globally. OUR MISSION | Providing efficient, safe and cost-effective port and logistics services to our customers. OUR SERVICES Project cargo handling & storage | Bonded facilities Freight forwarding logistics | Customs brokerage Container & breakbulk handling | Cartage & transportation Ro-Ro vehicle handling | Reefer plug-in points General & specialised storage and warehousing Value added services • De-stuffing & stuffing containers • On-site customs/vet inspections PROFILE ADDRESS Corner 5th Road & 5th Street, Lagoon, Walvis Bay, Namibia TELEPHONE +264 64 203434 EMAIL info@searail.com.na WEBSITE www.searail.com.na FACEBOOK @SeaRailBots

Other recent publications by Global Africa Network: