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 • The Mining / Transport Landscape • Transport and Logistics Solution – Transport Management – Logistical Management – Fuel Management – Other • Risk vs. Empowerment

The legacy AN INTRO AN INTRODUCTION DUCTION T TO O THE BLACKMAGIC THE BLACKMAGIC GROU GROUP

History History of Bl of 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

Group Group Structure Structure

Operation Operational al Entities Entities

Investment Investment Initiatives Initiatives 2011 2009 2012 2005 2008

Turn Turnover Grid 2012 over Grid 2012 – Oper Operatio ational & Contr nal & Controlled olled 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

Turn Turnover Grid 2012 over Grid 2012 - Invest Investment ments Company Percentage Turnover Owned Tshwane TV 25% R 60 000 000 BMW Hyde Park 33.3% R 555 000 000 Auto Rolls Royce SA 15% R 285 000 000 Audi Northcliff 25% R 350 000 000

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

The legacy AN INTRO AN INTRODUCTION DUCTION T TO O THE PROJECT T THE PROJECT TEAM EAM

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

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

Aris Alexandr Aris Alexandrou ou • 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

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

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

Setting the scene THE THE MININ MINING G / TRA / TRANSPORT NSPORT LANDSCAPE LANDSCAPE

Understa Understanding nding of Mangan of Manganese ese Commodity Commodity Tran Transportati sportation on • 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

Insight Insight into t into the C he Challenges hallenges of t of 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

Empowerment Empowerment Chall Challenges enges in in Tr Transpor ansport t Indu Industry stry Large Industry Players Large Industry Players Smaller Players Smaller Players Black Owners Black Owners White Owners White Owners Skills Skills Transfer is Transfer is Critical Critical Empowerment as Empowerment as Prerequisite for Contracts Prerequisite for Contracts Requires the formulation of a decent economic structure to guide smaller players….

Our Our GOA GOAL: L: Balancing Balancing Product Product Mo Movemen vement t Risk vs. Risk vs. Empow Empowerment erment Risk Management Empowerment Knowledge and Expertise Skills Transfer

The solution PROJECT PROJECT STRUCTUR STRUCTURE

Str Structur ucture e of Solut of Solution to ion to Logist Logistics ics Requir Requirement ements Transport Transport Logistical Logistical Management Management Management Management Loading & Off-loading Loading & Off-loading Personnel Personnel Zones Zones Management Management Holistic Holistic Solution to Solution to Vehicle Vehicle Fuel Fuel Packaging Packaging Depots Depots Management Management Management Management Mining Mining Route Route Logistical Logistical Workshops Workshops Management Management Other Other Requirements Requirements Fuel Fuel Supply of Supply of Mine Mine Management Management Equipment Equipment Consumables Consumables Training / Training / Fuel Fuel Fuel Fuel Warehousing Warehousing Mentorship Mentorship Acquisition Acquisition Disbursement Disbursement

The vehicles and routes TRANSPOR TRANSPORT T MANAGEMENT MANAGEMENT

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

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

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