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Logistical / Tran Logistical / Transport sport Requirements - - PowerPoint PPT Presentation

Logistical / Tran Logistical / Transport sport Requirements Requirements Proposal Proposal by Blackmagic Logistics Content Content Overview Overview An Introduction to the Blackmagic Group An Introduction to the Project Team


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Logistical / Tran Logistical / Transport sport Requirements Requirements Proposal Proposal

by Blackmagic Logistics

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Content Content Overview Overview

  • An Introduction to the Blackmagic Group
  • An Introduction to the Project Team
  • The Mining / Transport Landscape
  • Transport and Logistics Solution

– Transport Management – Logistical Management – Fuel Management – Other

  • Risk vs. Empowerment
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AN INTRO AN INTRODUCTION DUCTION T TO O THE BLACKMAGIC THE BLACKMAGIC GROU GROUP

The legacy

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History History of Bl

  • f Blackmagic

ackmagic Group Group

SECTOR YEARS OF EXPERIENCE Strategic Marketing Communications 17 years Recruitment 12 years Property Development 10 years Construction 8 years Logistics 8 years Automotive 8 years

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Group Group Structure Structure

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Operation Operational al Entities Entities

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Investment Investment Initiatives Initiatives

2011 2009 2005 2012 2008

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Turn Turnover Grid 2012

  • ver Grid 2012 –

Oper Operatio ational & Contr nal & Controlled

  • lled

Company Turnover Blackmagic Communications R 32 000 000 Blackmagic Logistics R 12 000 000 Blackmagic Consulting R 11 000 000 Ducati SA R 28 000 000 Magic People R 14 000 000

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Turn Turnover Grid 2012

  • ver Grid 2012 -

Invest Investment ments

Company Percentage Owned Turnover Tshwane TV 25% R 60 000 000 BMW Hyde Park Auto 33.3% R 555 000 000 Rolls Royce SA 15% R 285 000 000 Audi Northcliff 25% R 350 000 000

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History of …….

  • Acquisition, placement and management of 4 10-ton

tipper trucks at Banson Trucks (Chrome mines)

  • Further contract secured with DJ & AJ Plant Hire, running in

Sasol, and experience derived therefrom:

– Not lucrative industry unless you have direct contracts and

competitive rates

– Need experience and capacity

  • Collaborations with Ultimum Group
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AN INTRO AN INTRODUCTION DUCTION T TO O THE PROJECT T THE PROJECT TEAM EAM

The legacy

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Project Project Team Team

  • Blackmagic will oversee the overall project

management, ensuring that Kalagadi has a ‘one-stop’

solution to its entire transporting / logistical

requirements (one point of contact and management) – one report, one invoice.

  • The project management will be headed up by the

following team of experts:

– Paul Phume – Aris Alexandrou – Clifford Smit – Marc Lewitt

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Paul Phume Paul Phume

  • Position:

– Head of Project

  • Business Ventures:

– Entrepreneur – Logistics – Marketing & Communications – Construction – Automotive

  • Experience and Skills:

– 7 years experience in Logistics – 17 years as Entrepreneur – 17 years in Project Management – 7 years experience in Venture Structuring and Roll Out

  • Client List:

– Eskom, Freedom Park, Department of Roads and Transport, Emalahleni Local Municipality, Banson Trucks, DJ & AJ Plant Hire

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Aris Alexandr Aris Alexandrou

  • u
  • Position:

– Project Director

  • Business Ventures:

– Transport and logistics – Entrepreneur / International Business Consultant – Transport – Property Development – Automotive Industry

  • Experience and Skills:

– 22 years experience in research, consulting and execution in Logistics and related sector – 13 years experience in Automotive – 9 years experience as Business Consultant (start-up projects) – 3 years experience in research and consulting in Logistics Sector – Engagement in a multitude of initiatives for empowerment (IDC, etc)

  • Client List:

– Glencore, IDC, NEF, Bozano Group, Department of Natural Resources, DBSA, Lombards, Dialcom Spontania, Clutton’s Property Group, BMW AG

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Clifford Clifford Smit Smit

  • Position for Project:

– Head of Operations - Transport

  • Business Ventures:

– Transport and Logistics

  • Experience and Skills:

– 17 years experience in transport and logistics – Head of Operations and Logistics of Active Power (which has 38 trucks under their ownership and 400 trucks, 20 smaller BEE entities, managed nationally) – Role: Sources business and manages all operations (trucks, services, drivers, maintenance, payments, etc)

  • Client List:

– Jindal, Samancor, BHP, XSTRATA, EXXARO, General Mining, Eskom, Osho, Tata, Consol, Sasol, SAB

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Marc Marc Lewitt Lewitt

  • Position for Project:

– Head of Operations - Logistics

  • Business Ventures:

– Transport / Logistics – Finance – Commodity Trading

  • Experience and Skills:

– Bsc in Computer Science and Software Engineering; Bcoms in Management and Economics; Bcom in Transport (to be completed in 2013) – Owned / managed various companies in the finance, commodity trading and transport/logistics – Currently is owner / MD of Ultimum Group which manages a total of 180 trucks on transport routes across Southern Africa

  • Client List:

– Bridgeport, Assmang, Black Wattle mining, Samancor, Jindal, Kimberly Clarke, Harsco, Glen Douglas dolomite, Sky sands, West end Clay brick, SCE Ashman, Coalvest, Multigreen, Premier Foods

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THE THE MININ MINING G / TRA / TRANSPORT NSPORT LANDSCAPE LANDSCAPE

Setting the scene

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Understa Understanding nding of Mangan

  • f Manganese

ese Commodity Commodity Tran Transportati sportation

  • n
  • Elements to be kept top of mind with

regards to the transportation of Manganese:

– Product is very heavy so containers cannot be filled fully – It is very porous and therefore packaging (with keeping humidity levels to a minimum) is vital – environmental research to be undertaken – Cleanliness of packaging and transport medium critical so that product is not contaminated

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Insight Insight into t into the C he Challenges hallenges

  • f t
  • f the Transpo

he Transport rt Indu Industry stry

  • The volatility of the industry needs to be taken into account and

mitigated effectively

  • The following problems are rife in the industry:

– Non-competitive rates (larger companies vs. smaller companies) – Exploitation of small, black transporters and new entrants – “Empty parking lot” through bullying and aversive tactics of larger

players – Non-availability of trucks due to poor planning by mines

– Non-securitization of payments and financing requirements

– Non-maintenance of fleet (breakdowns, ageing of vehicles, fuel and

part theft) – Ill management of timing and routes (standing time, loading times, route calculations, etc)

– Site inductions and driver management

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Empowerment Empowerment Chall Challenges enges in in Tr Transpor ansport t Indu Industry stry

Large Industry Players White Owners Large Industry Players White Owners Smaller Players Black Owners Smaller Players Black Owners Empowerment as Prerequisite for Contracts Empowerment as Prerequisite for Contracts Skills Transfer is Critical Skills Transfer is Critical Requires the formulation of a decent economic structure to guide smaller players….

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Our Our GOA GOAL: L: Balancing Balancing Product Product Mo Movemen vement t Risk vs. Risk vs. Empow Empowerment erment

Risk Management

Empowerment Skills Transfer Knowledge and Expertise

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PROJECT PROJECT STRUCTUR STRUCTURE

The solution

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Str Structur ucture e of Solut

  • f Solution to

ion to Logist Logistics ics Requir Requirement ements

Holistic Solution to Mining Logistical Requirements Holistic Solution to Mining Logistical Requirements

Transport Management Transport Management

Vehicle Management Vehicle Management Route Management Route Management Fuel Management Fuel Management Personnel Management Personnel Management Workshops Workshops

Other Other

Training / Mentorship Training / Mentorship Supply of Equipment Supply of Equipment Warehousing Warehousing Mine Consumables Mine Consumables

Fuel Management Fuel Management

Fuel Acquisition Fuel Acquisition Fuel Disbursement Fuel Disbursement

Logistical Management Logistical Management

Loading & Off-loading Zones Loading & Off-loading Zones Packaging Packaging Depots Depots

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TRANSPOR TRANSPORT T MANAGEMENT MANAGEMENT

The vehicles and routes

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Overall Overall Concept Concept

  • To research and put together most cost-effective and

efficient solution to transport requirements, between or

combination of:

– Flat bed trucks (superlinks, links, tri-axials) – Containers (walking floors, top loading, side loading, front loading) – Tippers (side or back) – Road-trains – Conveyor belts – Rail

  • To revise solution on an ongoing basis (through

consistent research) to enhance efficiency and cost- effectiveness

  • Policy: No truck will be older than 4 years
  • GOAL: Give most cost effective price and solution pertaining

to your current realities

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Immediate Immediate Availabili Availability ty

We have the capacity to put:

  • 1 to 50 trucks within 2 weeks
  • 51 to 100 trucks within 4 weeks

Subject to signature of formal contracts, payment guarantee approvals and fuel availability

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Sub Sub-contrac contractor tor Split Split

We recommend the following balance of interest among the transport sub- contractors to ensure risk is mitigated but economic empowerment is kept at the forefront - At Project Initiation – 100 Trucks as Example

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Depending on feasibility - We undertake to acquire additional Small Transport companies, as well as to mentor and assist in the growth of both the small and micro entities already contracted to the project – an enterprise development

programme will be structured and implemented (under a ‘Kalagadi Fund’ umbrella)

Sub Sub-contrac contractor tor Split Split

Increase to 300 Trucks (Example)

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  • Medium Transport Companies - 50% of entire project split

equally among 4 to 5 medium players in the industry:

– Entities owning and managing between 50 and 100 trucks – Examples - Active Power, Blue Sky, Mac Transco, PC Van Rensburg – They have the capacity and funding resources to effectively provide for a project of Kalagadi’s magnitude but without the ability to monopolize the situation (like larger companies would do) – If one player retracts, there will sufficient resources among the rest in order for service not to halt

  • Small Transport Companies – 35% of entire project will be split

and managed among a number of small players:

– Entities that own and manage between 5 and 20 trucks – B-BBEE and HDI owned entities will take preference

Sub Sub-contrac contractor tor Split Split

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  • Micro Transport Companies – 10% of entire project will

be split and managed among a number of small players:

– Entities that own between 1 and 5 trucks – Distressed owners – Owner / Driver scenarios – Only HDI owned will be considered – Coaching / Mentoring plan will be put in place

  • Localization – 5% of entire project will be split and

managed among a number of players based in the Northern Cape

Sub Sub-contrac contractor tor Split Split

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Concept: Concept: Workshops Workshops & & Depot Depots

  • We recommend the establishment of workshops at both the loading and
  • ff-loading areas:

– 4 Service Bays for every 50 trucks – Wash bays to mitigate cross-contamination from transporting different products

  • To have breakdown teams on standby (mechanics, vehicles, tools, etc)

for emergency situations:

– Especially to assist the small and micro companies

  • Management of depots (rail, harbour, road)
  • GOAL: To ensure trucks are maintained at an ‘almost-new’ level in order

to minimise on breakdowns and other incidental costs

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Calculation Calculation of Rates

  • f Rates

We would like to balance providing the best service at

market related rates

Calculation of rates will be based on:

  • Route conditions
  • Truck maintenance
  • GIT Insurance
  • Management Fee (adjusted according to economies of

scale) We want to avoid circles of disaster and ensure sustainability of our solution.

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LOGISTICAL LOGISTICAL MANAGEMENT MANAGEMENT

The loading and off-loading

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Plotting Plotting a Solution a Solution

  • Various packaging solutions will be researched and the most efficient and

effective solution will be put together to meet Kalagadi’s requirements.

Options include:

– Containers – Bagging – Barrels – Pallets

  • Blackmagic has obtained written commitment from industry players, to the

value of over R 100 million each (and more as required), for the mine’s plant requirements at loading and off-loading for the Kalagadi project:

– ERFTRIM – Blue Sky Carriers – Met Group – SJ Drilling – Any of the 4 are able to manage 3 million tons per annum

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FUEL FUEL MANAGEM MANAGEMENT ENT

The underlying resource

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Fuel Fuel Acquisition Acquisition and and Man Manageme agement nt

  • Estimation of 2 million liters required to manage 150

trucks monthly

  • To research the purchasing and placement of fuel

in bulk at discounted rates

  • Absolutely vital to the management and security of

the fleet (at both loading and off-loading zones) as well as the smooth operation of the mine itself

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RISK RISK VS. EMP

  • VS. EMPOWERME

OWERMENT NT

The underlying resource

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Our GOA Our GOAL: Balancing L: Balancing Risk Risk vs.

  • vs. Empower

Empowerment ment

Risk Management

Empowerment Skills Transfer Knowledge and Expertise

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Skills Skills Transfer Transfer

  • We undertake to develop the necessary industry related skills in young,

promising HDI individuals through implementing a mentorship

programme whereby the selected individuals shadow the core project team: – The individuals will be sourced locally and from other regions – We will develop an internship programme that looks at specific skills transfer (creating syllabi) – The eventual goal is to place some of these individuals in permanent

positions within the project

– There will be a focus on youth and women (a quota will be implemented)

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Skills Skills Transfer Transfer

  • Blackmagic has a strategic relationship with an organization called Student

Sponsorship Programme, through which a specialised programme can be

developed to identify promising individuals who are still at school and nurture their interest and growth from that point (such as holiday internships at the mine)

  • Blackmagic also has a strategic relationship with Youth in Mining SA,

which could be leveraged to source individuals

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Skills Skills Transfer Transfer

  • Local Employment:

– It will be a condition of our contracts with sub- contractors that they need to recruit a certain percentage of their drivers from the local

community as frequent staff turn-around occurs

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Needs Needs Analysis Analysis at at Mine Mine

  • We would like permission to conduct a 3 day on-site

needs analysis:

– Day 1 –

  • Inspection / tour of grounds (sinter plant, shafts, etc) with our

yellow machinery consultants/associates for loading and off- loading and our transporting sub-contractors

  • Meetings with various departments: Production,

Procurement, Logistics, Operations, Sinter Plant, Risk and Safety and any other department you may think relevant to us performing our job

– Day 2 & 3 –

  • Inspection / tour of grounds (sinter plant, shafts, etc) with our

yellow machinery consultants/associates for loading and off- loading and our transporting sub-contractors