NPA Strategic Direction & BEE OpportunitiesPresented by Siyabonga GamaChief Executive Officer NPA

A short quiz

The following short quiz consists of 4 questions and tells whether you are

qualified to be a “professional”

The questions are not that difficult, so don’t cheat by looking ahead!

Question 1

How do you put a giraffe

into a refrigerator?

Answer

The correct answer is:

Open the refrigerator, put in the giraffe and close the door.

This question tests whether you tend to do simple things in an overly

complicated way.

Question 2

How do you put an elephant into a refrigerator?

Answer

Wrong Answer: Open the refrigerator, put in the elephant and close the

refrigerator.

Correct Answer: Open the refrigerator, take out the giraffe, put in the elephant and close the door.

This tests your ability to think through the repercussions of your

actions.

Question 3

The Lion King is hosting an animal conference. All the animals attend except one.

Which animal does not attend?

Answer

Correct Answer:

The Elephant.

The Elephant is in the refrigerator, remember.

This tests your memory.

OK, even if you did not answer the first three

questions correctly, you still have one more chance

to show your abilities.

Question 4

There is a river you must cross. But it is inhabited by crocodiles.

How do you manage it?

Answer

Correct Answer: You swim across. Why?

All the Crocodiles are attending the Animal Conference.

This tests whether you learn quickly from your mistakes.

According to Andersen Consulting Worldwide, around 90% of the professionals they tested got all questions wrong. But many preschoolers got several correct answers. Anderson Consulting says this conclusively disproves the theory that most professionals have the brains of a four year old.

Send this out to frustrate all of your friends

NPA Strategic Direction

TRANSNET’s Vision

Africa's undisputed world champion in transport and logistics solution

NPA Strategic Intent To be a transformed, self-sufficient port

authority that facilitates and enables competitiveness in a world-class port

system

NPA Strategy derives from:

1. The obsession to make the South African Ports system world class

2. Synthesizing our processes, systems and people values to satisfy our stakeholders

3. Taking actions that differentiate the NPA from other ports landlords on the continent through continuous innovation, value-added services and brutal execution of our plans

NPA Strategic Objectives : 2003/04

Financial Ensuring sustainable value creation and

profitability within NPA Customer & Stakeholder

Creating an enabling business environment to enhance trade

Internal Business Perspective Entrenching a performance-centered culture to

ensure efficiency, effectiveness and continuous improvement

Innovation and Learning Growing and developing NPA staff in line with

equity and gender objectives Continuously conduct research and competitive

intelligence analysis aimed at enhancing business growth, innovation and creativity

4R Model

NPA Strategic Direction

NPA’s strategic direction underpinned by the National Commercial Ports Policy and National Ports Authority Bill

The National Ports Authority Bill specifically requires NPA

To promote the achievement of equality by measures designed to advance persons or categories of persons historically disadvantaged by unfair discrimination in the operation of facilities in the ports environment

Promote greater representivity, in particular to increase the participation in terminal port operations of historically disadvantaged persons

This area will remain a strategic imperative for NPA for some time

BEE Strategy

To accelerate procurement from black-owned and empowered enterprises to create new enterprises with the

objective of growing existing emerging entrepreneurs to produce value-added goods and services for

the industry and increase employment

Key BEE Opportunities

Construction projects: R1,2bn BEE spend expected over next 3

years (R/Bay, Durban, Ngqura & Cape Town)

Maintenance projects: R400m BEE spend on electrical,

dredging, marine craft and equipment maintenance e.g. floating cranes

Provision of security, cleaning and catering services,70% set aside for BEE suppliers

Key BEE Opportunities (cont..)

Supply of uniform clothing R21m (100%) set aside for BEE suppliers, disabled and women groups spread in all ports

Construction of new admin buildings in Saldanha & Mossel Bay – Set aside 100% for black contractors – R21m

Oceans of opportunity for BEE entrepreneurs to participate in terminal operations over the next 5 years as we concession various SAPO operated terminals

Past Achievement

Total Discretionary Expenditure

BEE spend % BEE spend

R1,209,660,220,91 R479,730,619,28 40%

2002/3 BEE EXPENDITURE

BEE Targets

CAPEX (Rmil)

BEE

CAPEX

Target BEE%

OPEX (Rmil)

BEE OPEX

TARGET BEE%

R1,907,00 R610,24 35% R1,342,00 R550,22 45%

CURRENT BEE TARGETS 2003/4

TOTAL BEE YTD

NPA Undertaking to assist BEE growth in Maritime Sector

Facilitate access by Black suppliers to NPA procurement activity

Ensure that an increasing portion of contracts are awarded to Black Entrepreneurs and Suppliers with a clear and evident commitment to Black Empowerment

Facilitate entry of Black entrepreneurs into port related industries e.g. warehousing, logistics park operations, stevedoring etc.

Create awareness, understanding and support for Black Economic Empowerment among NPA key stakeholders

Challenges facing NPA

Construction projects remain too big and specialized

Implementation of our robust supplier development policy to achieve 50% BEE spend by 2004, and 60% thereafter

Fronting by so called “BEE” suppliers Established white firms still prefer to deal

with BEE on the basis and only for public sector work!

Entrepreneurs remain averse to access the really big opportunities, e.g. owning & running shipping lines, accessing land for value-added services

Way Forward

Communication of major projects and initiatives prior to commencement (Ngqura & Durban 2005 case study)

Entrenching a maritime culture amongst entrepreneurs to take advantage of coastal mines (Ports!)

A sharper focus on supplier development to create meaningful and enduring partnerships

Removing a culture of entitlement amongst some suppliers and ensuring they adopt a continuous improvement culture to drive down costs

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