South African Business 2018 edition

OVERVIEW investment in

OVERVIEW investment in infrastructure by the state has not been at levels that were expected in the years since South Africa hosted the 2010 World Cup. With slow growth, national freight and logistics company Transnet has not been able to pursue its R300- billion infrastructure programme at the speed that it wanted to. Aspects of the programme, such as the acquisition of locomotives, are going ahead and the expansion programmes of Gautrain and the Passenger Rail Agency of South Africa (PRASA) are also keeping engineers busy. Transnet Engineering’s mechanical workshop complex at Koedoespoort in eastern Pretoria has been tasked with making 90 locomotives. The high-level specifications of the modern locomotive are engaging the intense focus of the facility’s 3 692 employees. There are seven business units located at Koedoespoort, including a foundry. Transnet Pipelines recently completed a sophisticated new multi-product pipeline between the coast and Gauteng. It operates a 3 800km network of underground, high-pressure petroleum and gas pipelines throughout the eastern parts of South Africa, as well as the infrastructure and property associated with them. The Renewable Energy Independent Power Producers Procurement Programme has created an entirely new industry in less than seven years, with investment of about R200-billion in solar parks and wind farms. This has created huge opportunities for engineers of every sort. The programme stalled in 2016 but is set to begin again in the fourth quarter of 2017. Two of the world’s largest coal-fired power stations are still under construction in Limpopo (Medupi) and Mpumalanga (Kusile) and there are several coal and platinum projects in both of those provinces that are also sources of work for engineering companies. The South African National Roads Agency Limited (Sanral) has a good credit rating and it continues to pursue projects in all parts of South Africa. South Africa has one engineer to every 3 166 citizens, compared to Malaysia where the figure is 543 citizens per engineer. The Skills Development Amendment Act is intended to improve the situation. Universities, universities of technology and companies are increasing their focus on the training of engineers. The Engineering Council of South Africa (ECSA) has started a programme whereby trainees can earn certificates in specific disciplines from a broader range of institutions. The qualifications will be in line with the council’s Exit Level outcomes. Gauteng’s long history in mining has given its engineers decades of experience in that field and they have developed over the years into highly competent all-rounders. In its early days, the University of the Witwatersrand (Wits) was called the South African School of Mines and Technology. According to Mining Weekly, Wits and the University of Pretoria enrol more first-year mining engineering students than the combined enrolment of Canada, the USA, Australia and New Zealand. The University of Pretoria’s Graduate School of Technology Management (GSTM) offers a range of degrees and short courses, including Masters in Engineering Management, Project Management and Technology Management. At a national level, the National Skills Authority (NSA) works with SETAs in carrying out the National Skills Development Strategy (NSDS). The Human Resource Development Council of South Africa (HRDCSA) is an over-arching body that aims to give guidance to the many institutions working on skills development and training. It is managed by the DHET. Six of South Africa’s biggest construction companies have established a R1.25-billion skills fund. ONLINE RESOURCES Consulting Engineers South Africa: www.cesa.co.za Engineering Council of South Africa: www.ecsa.co.za National Department of Public Works: www.publicworks.gov.za South African Consulting Engineering Firms: www.consultsa.co.za Southern African Institution of Civil Engineering: www.civils.org.za Transnet Engineering: www.transnet.net SOUTH AFRICAN BUSINESS 2018 90

Transforming South Africa’s engineering sector Building on the success of its Enterprise Development programme, which saw a combined turnover growth of the initial ED partner companies by 204% and the creation of over 100 permanent and temporary jobs in South Africa, WorleyParsons is collaborating with small- and medium-sized black-owned enterprises to jointly deliver services in the mining, water, energy and infrastructure sectors, says WorleyParsons’ CEO Denver Dreyer. “As part of our unwavering commitment to transformation, we are leading this agenda in engineering across all sectors in South Africa and are partnering with sustainable, empowered businesses that are capable of growing with us,” says Dreyer. “We do not consider transformation a ‘numbers game’ in terms of BEE points. It is imperative for long-term success as our traditional markets are changing. Service providers have to adjust their business models to reflect the transformation agenda or else be at risk of becoming obsolete. “The partnerships that we are creating are mutually beneficial. We will evaluate the strengths that each party brings to the table and identify where we can help each other. These enterprises will benefit from skills transfer and gain an understanding of how to successfully deliver bigger projects with our support, while we do our part to transform the engineering sector in South Africa,” says Dreyer. WorleyParsons RSA to their own client base, enabling a mutually beneficial relationship of growth. “We are entering into agreements with suitable companies as equals for the benefit of both parties. Transformation is the right thing to do for our country, but on an enterprise level, it will also secure a better future for all the people engaged in our organisation, regardless of who they are. Through our transformation partnerships, we will be able to land bigger projects alongside those partners, which will benefit everyone in our employ,” adds Dreyer. Denver Dreyer Chief Executive Officer of WorleyParsons RSA Denver Dreyer is a vibrant executive with 20 years of strategic business development and operational experience in the chemicals, infrastructure, power and hydrocarbons sectors in sub-Saharan Africa. Denver is the CEO of WorleyParsons RSA, part of the global WorleyParsons Group, and is responsible for the company’s mining, hydrocarbons and power operations based in Johannesburg, South Africa. He is passionate about the meaningful and sustainable transformation of engineering in South Africa. Referred to as the Enterprise and Supplier Development (ESD) programme, WorleyParsons RSA is also assisting the ESD partner companies with branding, marketing collateral, legal compliance, market positioning, financial compliance and introducing potential clients that WorleyParsons RSA is already servicing to ESD partner companies. Conversely, these SMEs have introduced