PORTSIDE ISSUE 20, SPRING 2014 The Offjcial Newsletter of Transnet - - PDF document

PORTSIDE

The Offjcial Newsletter of Transnet Port Terminals, a Division of Transnet SOC Limited

ISSUE 20, SPRING 2014

FEATURE ARTICLES:

Targeted Volumes 2014/2015

• Page 3

Berth 108/109 outage. Phase 1 complete

• Page 5

THE APP THAT'S

CUSTOMER FOCUSED

TPT's Customer Relationship Management Journey - Page 7

With the company now well into the new fjnancial year, I and the Executive Committee attended the press conference for the Transnet Annual Financial Results for the previous fjnancial year at the end of June in Johannesburg. The good news was well received by customers, labour, investors and other stakeholders. Back home, the exhilaration created by the Phusha campaign to achieve year-end volume targets and the excitement from the bonus pay-out seems long gone. The fjrst quarter of the new fjscal year has been particularly challenging. GDP growth contracted by 0.6% in the fjrst three months of 2014 and the World Bank has consequently revised South Africa’s growth forecast downwards to 2% for 2014. In addition, we witnessed a lengthy 19 week mining strike which culminated in the country receiving a downgrade of its credit

• rating. NCT was also directly impacted by strike

action, which unfortunately had incidents of violence and intimidation on non-strikers. On the international front, Europe and China’s growth rates have been revised downwards to 1.2% and 7% respectively. The above economic conditions have had an adverse impact on the volume performance of

• ur business. After the fjrst quarter, the key

volume performances are:

• Container volumes
• 7.7%

below budget

• Auto volumes
• 11.9% below budget
• Bulk volumes
• 2.9%

below budget

• Break bulk volumes - 1.5%

above budget The break bulk sector performed well with 3.53m tons handled versus a target of 3.48m tons. Overall, the lower volumes handled resulted in a lower than expected EBITDA, which was R46m below budget for the fjrst quarter. Operating expenses were curtailed, resulting in a favourable variance of R76.2m. TPT will strive to improve its performance over the next two quarters with the help of new, advanced equipment at the terminals. CTCT 01 From the CE's desk 02 Financial performance 03 Targeted volumes 2014/2015 04 DCT: Pier 2 - A winning plan, 5 Gangs and 5 Cranes 04 TPT now has an app to help your customers 05 Berth 108/109 outage Phase 1 complete. First vessel berthed 06 Saldanha MPT double volumes handled 07 TPT’s Customer Relationship Management (CRM) Journey 08 Richards Bay customers feel the benefjt of the National Customer Service Centre 09 New locally manufactured RMGs on course for handover 09 Shifting into gear 10 Evergreen Presidents meet TPT Chief Executive 10 Delegation to Bremen 10 TPT sponsors MSC Regatta 11 TPT exhibits at the Africa Ports and Harbours Conference 11 Transnet Port Terminals on social media 12 Information booths project launch Richards Bay Terminals 13 Netherlands trade mission 13 CPT Terminals receive PMR Africa Leaders and Achievers Diamond Arrow Award 14 2014 Ground Breakers Awards 16 14th KwaZulu-Natal Exporter Awards Launch in Durban 17 TPT Dominates Transnet Internal Audit (TIA) Integrated Governance Awards 18 Safety Awards 19 Zero fjndings for Saldanha Bulk Terminal's fjrst ISO 9001 Audit 20 Saldanha Environmental Stakeholder Forum 20 Another great idea: The Innovation Programme at TPT 21 TPT celebrates Mandela Day 22 TPT raises its voice on World Environment Day 23 Legal & Compliance 23 Developing and expanding our terminal footprint: Applications to handle new commodities 24 Marine Insurance: only 4 000 years old 25 Know your consumer rights: The Consumer Protection Act and you 25 Cyber crime 26 National Prosecution Authority and the enforcement of eco laws 27 Contaminated land provisions 28 Dawn raids conducted by the Competition Commission 29 New appointments 30 Sustainability: energy news

will be commissioning two new STS twin lift cranes in mid-September 2014. These new machines, combined with additional hauler/ trailer combinations, will allow the terminal to become even more effjcient and volume driven. NCT, as part of its Phase 2A expansion plans, had two new STS twin lift cranes installed in early July 2014. The terminal is currently completing endurance testing on these cranes before they can be fully commissioned. DCT’s berth 108 was taken out of service for four months from 17 February 2014 to 30 June 2014. This allowed for maintenance of the quay wall by TNPA (scour protection). This berth outage gave TPT the opportunity to effect much needed refurbishment of the four Liebherr STS cranes and attend to critical safety paving repairs on the area adjacent to the quayside. The berth can now service vessels commensurate with the available stacking area in the South Quay. Phase 2 of the stack rehabilitation commenced on 9 June with an expected completion date of 10 October

• 2014. During this phase, 1 500 out of 2 500

ground slots on the South Quay will be available for operational deployment. Employee wellbeing is one of the seven values which TPT embraces as an organisation. TPT values its staff and therefore invests continuously in employee care initiatives which create a more comfortable, employee-centred work environment. In this vein, work is already underway on the central staff facility at Pier 1, with the outer structure expected to be completed by November 2014. Handover of the facility to the terminal is expected in April 2015.

These are TPT’s full set of values:

• 1. Employee wellbeing
• 2. Openness and honesty
• 3. Innovativeness
• 4. Customer focus
• 5. Accountability
• 6. Speed of delivery
• 7. Growth is everybody’s business

Continuously striving for excellence while embracing and living our values will allow us to take this organization from good to great. In conclusion, the key challenge moving forward will be the recovery from the sluggish quarter

• ne volume performance. While we may not have

much control over global and local economic conditions, the Commercial Team and the TPT Executive Team are engaging customers to win additional volumes. We have had positive engagements, and will continue to position TPT favourably as the terminal operator of choice for

• ur customers.

We recognise that improving our operational effjciencies and turning around vessels faster will go a long way in making South African ports more attractive to shipping lines. We would like to urge you to resume the enthusiastic Phusha efforts from last year. It was indeed inspiring to see that we could all work so well together to achieve a common goal. South Africa needs faster export growth to stimulate the economy, create employment and reduce poverty. To this end, TPT has a vital role to

• play. Each one of us is a part of this solution.

I thank you for your continued support and commitment to making TPT the terminal

• perator of choice.

Your colleague, Karl Socikwa

From the CE’s desk

01

02

Let’s take a look at how we are doing fjnancially for the year to date ending June 2014

Profjtability

Transnet Port Terminal’s (TPT) performance in the fjrst quarter has been adversely affected by the negative GDP growth of 0.6%. Revenue is 5.1% below budget as a result of volumes across all sectors being below budget, with the exception of the break bulk sector. The container sector was negatively impacted by the strike, the loss of MSC Valencia volumes at NCT as well as low demand in the Far East. Bulk volumes are 2.9% below budget mainly due to an underperformance in Iron Ore and Magnetite volumes. Iron Ore was impacted by a derailment at the Sishen mine in May coupled with equipment challenges at Saldanha. However volumes are expected to recover as the year

• proceeds. The handling of Magnetite has been

affected by rail maintenance and poor wagon supply due to train turnaround time issues being experienced at RCB. A 24/7 command centre has been set up with effect from July to improve the situation. Auto volumes are 11.9% below budget and 20% below previous year volumes. This is essentially due to weak consumer demand, NUMSA strike action and the recall of Ford parts. While break bulk volumes are 1.5% above budget, revenue is 2.7% below budget essentially due to an unfavourable price mix variance. To date TPT has saved 34.5% of discretionary

• spend. This is in line with the moratorium issued

by the Transnet Group CE. TPT is committed to working as a team to implement EBITDA improvement initiatives to catch up on the year to date EBITDA shortfall. The net impact of the above is that TPT has posted an operating profjt, before interest, tax and depreciation, which is 6.9% behind budget and 3.3% below the prior year.

Infrastructure Investments

Our capital spend includes spending in the following signifjcant areas:

• Replacement of two cranes on the East Quay at

DCT

• Expansion projects - Open Storage Area C&D

West Development

• Ngqura Container Terminal Phase 2A
• Mid-life replacement of major components on

four Liebherr Ship to Shore Cranes

• Central Staff Facility at Pier 1
• New Tippler at SAL IOT

Conclusion

Although TPT performed below budget for the fjrst quarter, we are expecting an improvement during the year as management is in the process

• f identifying new opportunities and initiatives to

assist in delivering performance. To date revenue and cost saving initiatives have been identifjed. With the efforts of all employees, we are confjdent that these can be achieved. Over the next seven years TPT has a capital Investment plan with a specifjc focus on capacity expansion to meet the unconstrained demand in terms of the Market Demand Strategy (MDS). The MDS places emphasis on achieving improvements in operating effjciency, productivity and reliability. In order to deliver on this plan, it is critical that the TPT team works together for the planning, monitoring, execution and delivery of the various capital projects. Overall, TPT has performed poorly in the fjrst quarter mainly due to the poor GDP growth impacting negatively on demand. The labour unrest, container sector and metal industry, as well as rail capacity constraints, further impacted negatively

• n performance. However this is expected to

reverse as the year unfolds with the positive impact

• f an increase in demand for commodities such as

Iron Ore, Manganese and Ferro Chrome.

TPT Volume and Revenue

Highlights

KPI: Savings in discretionary

• costs. Discretionary spend is

34.5% below budget mainly due to TPT’s continued effort to mitigate wasteful spend.

Lowlights

KPI: EBITDA Margin. The EBITDA Margin is 0.5% below budget essentially due to low demand translating into lower than budgeted revenue.

T

201

ARGETED VOLUMES

4 / 2015

4.9M

CONTAINERS

82M

BULK

TONS TEU’s

15M

BBULK

TONS

A LET US TRE T EVERY VESSEL AS A TRANSACTION

UNITS

662K

AUTO

CONTAINERS

BULK

BBULK

AUTO

03

04

DCT: PIER 2 - A WINNING PLAN

5 Gangs and 5 Cranes

When vessel MSC Texas was delayed at the Ngqura Container Terminal (NCT) due to the illegal strike action held over a 14 week period, it was up to Durban Container Terminals (DCT) Pier 2 teams from Operations and Technical, in collaboration with planners Avril Murugan and Andrew Sibinda, as well as the Continuous Improvement team, to ensure a seamless service for the customer. Upon arrival at DCT: Pier 2 from NCT, vessel Texas encountered further challenges. “When vessel Texas arrived in DCT, there were challenges with cranes 525 and 531. Crane 525 was undergoing repairs for two weeks and Crane 531 was having its wire ropes changed which took three days” , said Avril. Furthermore, the stack was not closed when the vessel arrived meaning that containers were still making their way to the terminal. Avril, Andrew, the DCT: Pier 2 Operations team lead by Lulamile Mtetweni, Technical Department, and the Continuous Improvement team had to focus on the vessel currently at berth to ensure a quick turnaround. All available cranes were to be used and gangs optimised to ensure the berthed vessel, Safmarine Seroja Lima, was completed sooner than planned in order for vessel Texas to be serviced. “We deployed fjve gangs and fjve cranes to work vessel Seroja Lima” , said Avril. The berthing delay of vessel Texas was drastically reduced as the team met the CTOC target and achieved a ship working hour of 52.6. Both customers MSC and Safmarine expressed their gratitude for the effjcient service that considered their interests. Asked what contributed to the success of this quick turnaround, Andrew says, “Teamwork and collaboration is what made it possible to turn around Seroja Lima. It was a concerted effort on the part of Operations, Technical, Planning and the Continuous Improvement team” . Opposite: Our CE, Karl Socikwa (centre) congratulates the Planning team represented by Andrew Sibinda (left) and Avril Murugan for their exceptional work

TPT now has an app to help your customers

Transnet Port Terminals (TPT) has entered unchartered waters with the launch of a new app that helps international traders, from a small furniture importer to a wine exporter or a large manganese supplier, to keep track of their cargo in real-

• time. The app grants the user

instant access to information that includes live berth plans and important terminal updates across TPT’s network of 16 terminals countrywide. TPT is

• ne of a few port operators

globally to launch its own app, an effort that’s taken fjve months to develop. The app, identifjed as Transnet TPT, is available in both the Google Play store for Android devices and the App Store for devices

• perating on iOS. “The app is another communication channel that

addresses an effjcient service offering by TPT to the customer, ” says Nombuso Afolayan, General Manager for Commercial and Planning at TPT. She added that the app will assist traders to enhance their planning and to proactively make decisions with the real-time information now at their disposal. The app is developed in line with modern world developments to better enable the TPT customer to track his or her cargo and terminal operations and developments without physically being on

• site. Afolayan said the information provided by the app will enable

shipping lines to make decisions to apply slow steaming in order to save money on fuel. Connecting the world and devising a solution that aids the supply chain was necessary as part of TPT’s aim to be an accessible business that continues to grow. The TPT app is available at the iTunes and Android stores.

05

Berth 108 proudly handled its fjrst vessel, the 250 metre long Maersk Innoshima, on 1 July after a four month rehabilitation.

Phase 1 of the Berth 108 and 109 upgrade comprised refurbishment of four Liebherr cranes, repairing of stacks against wear and tear, as well as restoring of roadways. This was all successfully completed within the planned timelines. The scour protection component of the South Quay outage was undertaken to secure the safety and stability of the quay walls - approximately 6 000 cubic metres of scour rock have been placed at the foot of the quay wall to ensure its safety and stability. Pavement rehabilitation comprised replacement

• f concrete panels as well as cleaning of slot
• drains. The 108/109 stacking yard is serviced

by a network of slot drains which ensure excess rain water is drained away. As part of the outage project, the drains have been cleaned and all the debris disposed of in an environmentally friendly way. For the crane refurbishment, over 100 tons of scaffolding were deployed on the structural component of the project. Other work has included the replacement of the asphalt layer that forms part of the tarred road surface behind the quay. Thank you to our employees for their efforts and our customers for their support during this period!

Berth 108/109 outage

Phase 1 complete. First vessel berthed

06

Saldanha MPT double volumes handled

The Multi-Purpose Terminal Saldanha achieved a record breaking performance when it handled 440 964t of cargo against a budget of 301 871t during April. The main contributors to this achievement were: The terminal smashed their record just two months later, in June, when they handled 481 576t of cargo against a budget of 398 538t. Additional commodities such as coal and imported steel, which were not budgeted for, also contributed to the June performance. A comparison of the volumes handled for the fjrst quarter of last year versus the fjrst quarter of this year reveals that the terminal actually doubled its volumes! Terminal management acknowledge that this kind of achievement is not easily attained. The MPT team are to be commended for their focus and commitment and they have set an extremely high standard for others to follow.

COMMODITY BUDGET (tons) ACTUAL (tons) Variance %

Hot rolled steel 50 833 70 736 39.15 Manganese ore 68 333 175 735 157.17 Steel pellets 37 500 54 569 45.52

COMMODITY BUDGET (tons) ACTUAL (tons) Variance %

Hot rolled steel 50 833 74 701 46.95 Steel pellets 37 500 53 874 43.66 Heavy sands 30 000 59 809 99.36

June April

07 The Commercial function is bound by TPT’s standard

• perating procedures

to ensure it fulfjls its mandate to its shareholders and

• customers. TPT’s

customer policies ensure alignment of TPT’s organisation-wide customer engagements, via multi-faceted platforms driven by the Commercial and Planning Department. In 2010 TPT initiated a technology-based Contract and Customer Portal that offers a centralised, user-specifjc repository of customer data, contacts and information. In 2013 TPT embarked on a journey with the focus on TPT becoming a customer-centric

• rganisation. To ensure the Commercial

Department of TPT is forward thinking in terms

• f stakeholder management, relevant TPT

stakeholders have real-time information on our

• customers. The Commercial Team in conjunction

with the ICT team is currently researching an updated electronic system to ensure continuous improvement practices. The main driver is to keep all relevant internal stakeholders up- to-date with real-time customer information thereby ensuring maximum benefjt and service delivery for TPT customers. TPT’s CRM covers:

• Policies and processes that manage

commercial risks; categorise customers by division, sector and terminal; and align customer engagement with TPT’s people aspects that specify protocols and structure

• f engagement; manage customer issues and

pursue integrated marketing initiatives

• Services Contract Management and pricing

models

• Technology ie the Contract & Customer

Portal for customer data management CRM unique offerings include:

• A Customer Services Centre to address

queries and assist with planning

• A National Planning Centre to improve vessel

turnaround time thereby exceeding our customers requirements and expectations. Key business improvements eg: reduced berthing times; improved truck turnaround times at most terminals; faster and more effjcient container handling and crane operations (GCH); decreased stack

• ccupancy and congestion; and improved

Ship Working Hour (SWH) performance

• Corporate Affairs forming part of the

Commercial and Planning Department thereby improving internal and external stakeholder management

• An online customer portal that features:

customer details; contract and industry information; past engagement activities and outcomes; background research and customer intelligence

• Customer Service Level Agreements
• Joint consultation via sector forums, eg
• Automotive: National Association of

Automobile Manufacturers of South Africa (NAAMSA)

• Containers: Container Liner Operator

Forum (CLOF)

• Bulk: Bulk Liner Operator Forum (BLOF)
• Break bulk: SAASOA (SA Association of

Ship Operators and Agents)

• Business to Business events to share port

planning and interrogate industry issues

• An annual strategic meeting with TPT,

Transnet Freight Rail and Transnet National Ports Authority to align long term strategy, and plan for future growth

• Monthly strategic review meetings to

encourage customer relationship building

• Ad hoc courtesy visits to enhance customer

relationships

• Ad hoc plant / facility visits to ensure

understanding of customers’ business

• Standard operational engagements eg vessel

schedule meetings, SLA reviews and after sales engagements Value Add & Future CRM Development TPT’s CRM strategy, aligned with that of the Transnet Group, has improved relationships and mutually benefjted cooperation with customers. CRM is one of the Transnet Culture Charter’s seven desirable company behaviours. CRM activities will be dictated by the seven year Transnet Market Demand Strategy, through which TPT will invest R33bn to boost port

• perations. Plans include: revenue growth by

winning new business; pricing and operations need to be competitive to attract new lines and transhipment services.

TPT’s Customer Relationship Management (CRM) Journey

By: Nombuso Afolayan

Richards Bay customers feel the benefjt of

the National Customer Service Centre

As part of TPT’s aim to become more customer oriented, the National Customer Service Centre extended its services to the Richards Bay terminal with a launch during April which was well received by the industry. A dedicated team spent time in Richards Bay to understand the business and align business processes to streamline and communicate better with the customer. The centre deals with day-to-day customer enquiries, provides quotations for new business and is committed to providing customers with updates through proactive communication streams. TPT clients can now make use of our Customer Service Centre by contacting us here:

Tel: 0860 333 203 Email: TPTRichardsBayCSC@transnet.net

Please refer all email basic queries to the Richards Bay Customer Service Centre.

08

Our Service Offering:

• Tariff Quotations and Enquiries
• Vessel Berthing Information
• Hourly Updates of the Vessels

Working

• Vessel Balances
• Discharge Completion Dates
• Terminal Status Updates
• Complaints/General Queries
• Email and SMS Customer

Communication

• Web Updates

09

New locally manufactured RMGs

• n course for handover

In line with Transnet’s plan to improve rail operations in support of its strategic initiative for the diversion of cargo from road transport to rail, DCT: Pier 2 acquired two new Terex Rail Mounted Gantry Cranes (RMGs) to further boost productivity. The fjrst RMG has been erected and is in the process of being commissioned and is scheduled to be handed over to operations by the end of September. During August, components of the second RMG were delivered to the terminal, with the assembly and erection underway. The second RMG is scheduled for handover at the end of November 2014. The new RMGs employ the latest Siemens drive control and programmable logic control (PLC) features. The RMGs were manufactured in South Africa at the Terex Material Handling and Port Solutions factory in Boksburg. This is a signifjcant achievement as it is the fjrst time in the last 15 years that such equipment has been designed and manufactured in SA. As a result of this supplier development initiative, a number of SA companies were involved as prime suppliers. Going forward these locally developed suppliers will be the backbone of the component supply chain for maintenance (after sales support) of these and future RMGs manufactured in South Africa. Durban Container Terminals continues to showcase and improve customer satisfaction. Ongoing initiatives are aimed at reducing vessel berth/ port stay and increasing productivity. As part of DCT: Pier 2’s mission to take full advantage of the Ship-to- Shore (STS) cranes capability, two shifts were recently planned to work a six gang operation to take advantage of the good stowage opportunity presented to the terminal by the MAERSK LINE (Vessel: RDO Concord

• Voy1407/1408) at the North Quay.

On these two shifts we handled 1 032 moves, achieved a GCH of 26 and 146 SWH in a 7.5 hour shift. The previous shift also achieved record performances of 124 SWH and GCH of 28 – to the delight of the

• customer. Since then we have continued to make history with our six gang
• peration on one vessel. Towards end June, the two shifts that worked
• n the Seroja Lima Voyage achieved 1 857 in 11.5 hours and an SWH of

168 – a record volume ever handled for one vessel at TPT. The overall performance of the vessel was 108.8 SWH from start to fjnish – 5 786 total moves were done in 53.2 hours. Durban Container Terminal is the fjrst terminal to have introduced this type of groundbreaking innovation. It’s rewarding when customers appreciate the tangible difference the new tandem lift cranes are making to Ship Turnaround Time.

Shifting into gear

10

DELEGATION TO BREMEN

Evergreen Presidents meet TPT Chief Executive

Shipping company, Evergreen, sent a delegation to visit South Africa in early

• July. Signifjcantly, it was the fjrst time the

Singapore and Taiwan management had visited South Africa or Transnet with a view to new business propositions. Seen in the picture with TPT CE, Mr Karl Socikwa is Mr Johnny Lee (left) the incoming President of Evergreen Agency (South Africa) (Pty) Ltd and Mr Jim Cho (right) the outgoing President of Evergreen Agency (South Africa) (Pty) Ltd. TPT Chief Executive, Mr Karl Socikwa, formed part of the team who were invited by the Southern African German Chamber of Commerce (SAGCC) to participate in a business delegation to Bremen, Germany. The delegation was led by the Deputy Mayor of eThekwini, Councillor Nomvuzo Shabalala. The SAGCC invited key stakeholders from the Port and Maritime Industry in South Africa to participate with the objective of identifying how operators and service providers to the Ports of Bremen and Bremerhaven can assist enterprises operating in the Port and Maritime Industry in South Africa.

TPT sponsors MSC Regatta

The Bremen Ports are among the most important harbours in Europe. Bremen and Bremerhaven terminals deal with nearly every type of shipment, including containers, cars, bulk and break bulk goods, hazardous goods and project cargo. The Bremen ports also offer many value-added services in container logistics. TPT is the regional conduit in the export and import of products to and from Germany and this delegation provided the means to explore ways to improve operations and increase trade through our port terminals. As a member of the business delegation, TPT demonstrated practical support for the initiatives of the SAGCC and used the opportunity to build relations with existing and potential new clients in order to increase volumes through South African ports. A delegation of business and government representatives travelled to Bremen in Germany led by the Deputy Mayor of eThekwini. Transnet Port Terminals (TPT) has sponsored the annual MSC Regatta for the past 11 years, each

• July. This is an initiative aimed at training children in yachting and sailing at the Izivunguvungu MSC

Foundation for Youth and it benefjts youth from disadvantaged communities. The foundation also

• ffers general development and educational progress for youth.

Each year the return on investment has increased. MSC is one of our strategic customers and we are proud to support them as part

• f cementing our business
• relationship. As a sponsor

we were afforded with the branding opportunity at the week-long event. In addition TPT sponsored kit for the children taking part in the event.

11 Transnet Port Terminals participated in Africa’s leading transport and infrastructure show, the Africa Ports and Harbours Conference. Zeph Ndlovu, GM: KZN Operations, speaking at the conference said, “South Africa is well positioned to service the world’s key trade routes as global trade recovers and TPT is preparing for this growth by investing in new capacity ahead of demand. ” This is with reference to Transnet’s Market Demand Strategy which will see TPT investing billions over seven years in capacity and equipment. Ndlovu also noted that as a country we operate in a very competitive landscape for key global ports and terminals and it is important for South Africa to improve its competitiveness in order to enable TPT to attract and increase market and trade volumes. South Africa services the Southern African, Asian, European and South American trade routes and is ideally positioned to be a transhipment hub. TPT exhibited its integrated service offerings and engaged with delegates at the exhibition

• stand. TPT Executives who attended the conference hosted various media engagement

sessions and interviews. Above: Delegates engaging with TPT KAMs at the TPT exhibition stand.

TPT exhibits at the Africa Ports

and Harbours Conference

MEDIA

Join TPT

• nline

TRANSNET PORT TERMINALS ON

DO’S AND DON'TS ON SOCIAL MEDIA

Do’s

• At all times act as ambassadors of Transnet during

work hours or outside of those hours

• Observe all rules of etiquette and do not engage in
• nline behaviour that can be construed as anti-social
• r illegal. This includes racism, sexism, homophobia,
• etc. Please respect your audience

Don'ts

• Do not publish any Transnet-related information that

is not in the public domain. This includes confjdential and proprietary information

• Do not post or publish any information on colleagues

without their permission

SOCIAL

12

Information booths project launch

Richards Bay Terminals

The information booths project, which is being piloted at Richards Bay, was offjcially launched in late July at the Terminal Managers’ Roadshow.

There was excitement from the crowd as the GM

• f KZN Operations, Zeph Ndlovu and the two

Richards Bay Terminal Managers, Panaso Ndlela and Mandla Mpungose, simultaneously lifted the TPT branded covers to reveal the red plasma information screens, signalling the offjcial launch

• f the project.

The aim of the information booths is to provide employees, who do not have access to website and electronic communiqués, with a resource whereby they can access information. The information booth touch screens will close the information gap by making Ops Briefs, vacancy lists, electronic brochures and any other electronic communication material available to all

• employees. In addition they will provide access to

the intranet and the internet, within the guidelines

• f the TPT internet policy.

CPT Terminals receive

PMR Africa Leaders and Achievers Diamond Arrow Award

TPT’s Cape Town Terminals received a Diamond Arrow Award at a breakfast event held in Cape Town in May subsequent to a survey conducted by the City of Cape Town. The purpose of the survey was to:

• Profjle the City of Cape Town as a growth

point and potential investment area for foreign and local developers and investors

• Measure companies, institutions, government

entities and individuals on their contribution to the economic growth and development of the region, levels of management expertise, implementation of corporate governance and levels of innovation

• Measure companies, institutions and

government entities’ competencies

• Measure brand awareness

The awards are an acknowledgement of the effort and hard work of personnel who have contributed to this success. Congratulations to the Cape Town team for their contribution towards achieving this award and the role they played in the economic growth and development of the City of Cape Town and the Cape Peninsula. 13 The Dutch Trade delegation visited South Africa in July. Transnet Port Terminals together with TNPA hosted the delegation and there was a roundtable discussion between the Netherlands Trade delegation, TIKZN, TPT and TNPA that took place at the Trade and Investment KZN

• ffjces. Discussions took place on a number
• f infrastructure related developments in the

Durban harbour/region. The roundtable discussions were then followed by a short harbour boat tour.

Netherlands trade mission

14

2014 Ground Breakers Awards

EFFECTIVE LEADERSHIP

Winner: Anthony Benjamin 1st Runner up: Nicholas Mostert 2nd Runner up: Francois Verwey

INNOVATION (INDIVIDUAL)

Winner: Shaun Julius 1st Runner up: DJ Meyer 2nd Runner up: Noah Murugan

INNOVATION (TEAM)

Winner: P Khaphasha & K Mbenye 1st Runner up: Durban RoRo Team 2nd Runner up: NCT Wind Monitoring System

CUSTOMER EXCELLENCE (INDIVIDUAL)

Winner: Ahmed Khan 1st Runner up: Faith Chetty 2nd Runner up: Michael Manthey

CUSTOMER EXCELLENCE (TEAM)

Winner: CPT Planning & Logistics Team 1st Runner up: National Planning 2nd Runner up: Cape Town Terminal

SAFETY (INDIVIDUAL)

Winner: Sean Du Plessis 1st Runner up: Christina Reddy 2nd Runner up: Litha Dalindyebo

15

Transnet Port Terminals Chief Executive, Karl Socikwa, held his third annual Ground Breakers awards in Durban in late June. This year saw the addition of four more categories: Terminal Manager of the Year, Terminal of the Year, Region of the Year and the Employee Volunteer Programme. This year attracted more participants than previous years - an indication of the appetite

• f our peers for recognising the good in each other’s efforts. The winners and runners up

are as follows: SAFETY (TEAM)

Winner: Cape Town Terminal 1st Runner up: Ngqura Container Terminal 2nd Runner up: Port Elizabeth Terminal

OPERATIONAL EFFICIENCY (INDIVIDUAL)

Winner: Lulama Mangena 1st Runner up: Pamela Yoyo 2nd Runner up: Siyamthanda Budaza

OPERATIONAL EFFICIENCY (TEAM)

Winner: TVCC Team (Richards Bay) 1st Runner up: SD/BBBEE/ED (HQ Procurement) 2nd Runner up: East London MPT

REGION OF THE YEAR

KwaZulu-Natal

TERMINAL MANAGER OF THE YEAR

Brenda Magqwaka and Luvuyo Hobo

TERMINAL OF THE YEAR

Saldanha MPT

EMPLOYEE VOLUNTEER PROGRAM

Winner: Louis Hutton

16

14th KwaZulu-Natal Exporter Awards Launch in Durban

KwaZulu-Natal is a key contributor to South Africa’s GDP owing to the industries represented in the province, small and large exporters in the supply chain, and two of the largest ports and terminals in Africa – Durban and Richards Bay. Exports form the bedrock of any successful economy as they allow a country to form links with international markets for the movement of goods and minerals across

• continents. It is in recognition of this important role

that the Durban Chamber of Commerce and Industry (DCCI) partners with Transnet Port Terminals (TPT) annually to recognise businesses in exports at the KwaZulu-Natal (KZN) Exporter Awards. Now in its 14th year, the KwaZulu-Natal Exporter Awards held in Durban in July is an ideal showcase for emerging and established exporters of a wide range of goods. With a GDP contribution of 16%, KwaZulu-Natal is the second largest economic regional contributor after Gauteng and a large part of its economy is attributable to the Durban Container Terminal, the largest in Southern Africa, and the Richards Bay Terminal. The two facilities are among 16 terminals run by TPT. “The aim of the awards is to encourage new entrants and help existing exporters grow their businesses and develop new markets. The global economy is not yet stable and the contribution exports make in this region towards growing jobs is vital” said Andrew Layman, Chief Executive Offjcer

• f DCCI. One of last year’s winners, Tim Tanner
• f PT Engineering said: “This competition helped
• ur company get the recognition it deserves. We

got so many contacts from the Chamber for local

• partnerships. It put us on the map.

” PT Engineering now successfully exports locally manufactured and specialised equipment for off-shore oil and gas industries, the sugar industry and general engineering industries throughout Africa and around the world. Highlighting the importance of participation, Chief Executive of TPT, Karl Socikwa said: “South Africa is reliant on an export-led growth strategy and as the country’s leading terminal operator responsible for commercial import and export, TPT is proud to be associated with such an initiative” . He added that increased participation from businesses across the KZN province will only strengthen their global footprint in exports and make the province

• competitive. “As institutions facilitating that trade,

we too have a role to play in unlocking potential” , said

• Socikwa. Winners of the competition are offered

assistance and close support as prerequisites to successful exports such as company registration, customs procedures, export registration and process, as well as access to incentives for which they qualify. Trading protocols are explained, and consultants with strategic experience in exports provide their services regularly and at no cost. To expose South African products and services to the global community, provincial institutions lead outgoing trade missions to potential export destinations, host an online trade facilitation service, conduct workshops, and provide market intelligence so that exporters can assess the likelihood of success of their planned exports. The competition is now offjcially opened and entry forms are available from the DCCI offjces and from sakalap@durbanchamber.co.za

KZN’s major export products:

Aluminium, vehicles, iron, steel, ore, machinery, paper, pulp, varying chemical products, mineral fuels, oils, mechanical appliances and electrical equipment. The launch of the Durban Chamber of Commerce and Transnet Port Terminals KZN Exporter Awards is aimed at creating awareness that will see increased participation from provincial

• qualifjers. Categories of the competition this

year include:

• The Small Business Category
• The Medium Business Category
• The Large Business Category
• The New Exporter Category
• The Africa Category
• The Service Provider Category
• The Special BBBEE Category

17

TPT Dominates

Transnet Internal Audit (TIA) Integrated Governance Awards

At the Transnet Internal Audit Integrated Governance Awards ceremony held in May, TPT scooped four awards in the following categories:

• Best compliance in internal control environment
• Leader in fraud risk management environment
• Most improved internal control environment
• Individual contribution which was awarded to

TPT’s CFO, Pru Archary On an annual basis, Transnet recognises all of its fjve divisions, individuals and teams that have contributed to promoting these key elements. Congratulations to the TPT Chief Financial Offjcer (CFO), TPT Internal Control, Forensic and Compliance teams and TPT employees who have contributed to these achievements. Let us continue on our journey of taking TPT from “Good to Great” .

Seen at the award ceremony (left to right): Stuart Dubber (TPT Forensic Manager), Ntombeziningi Shezi (GM: Procurement), Pru Archary (CFO), Katherine Bhogal (Divisional Internal Control Manager), Xoliswa Hlongwane (ERM Manager) and Mark Fearick (Divisional Compliance Manager).

18

Safety Awards

TPT’s 19th annual safety competition took place during July at the old Durban drive-in site. This was a landmark event as for the fjrst time all the terminals converged on Durban to participate in one single safety competition day instead of holding regional

• competitions. The competition was judged per region and

the overall winner for each category was determined. Terminal teams were represented in three categories (in line with the national Transnet competition):

• SHE Rep
• First Aid
• Firefjghting

The competition is used as a means to ensure general SHE improvements with live scenarios as test cases. Further added advantages are:

• To determine the level of preparedness and

competency of emergency response teams in general

• To recognise the deserving efforts of the relevant

Fire Teams, SHE Reps, First Aiders and ensure suitable representation at the 19th Transnet Annual Fire Safety Competition

• To test effective responses to emergencies
• Reinforce positive behaviour and recognition of good

emergency response skills and sharing of lessons learned

• Elevate the general status of emergency response

teams, showcase their capabilities and encourage volunteerism The competition was a sterling success with all teams participating and learning essential skills to take back to their workplaces. Effective teamwork and willingness to achieve more was a common thread throughout the event. Congratulations to the winners and all participating

• teams. We look forward to the winners representing TPT

in the national competition at Transnet later this year.

Competition results:

Province Name Mark

1st Place KwaZulu-Natal Sinegugu Shangase 96% 1st Place Western Cape Leeane Snell and Jude Radcliffe 88% 1st Place Eastern Cape Christopher Sonwabo 84%

Overall Winner: Sinegugu Shangase

SHE Rep Category

Province Winner

1st Place KwaZulu-Natal Richards Bay Terminal 1st Place Western Cape Cape Town Container Terminal 1st Place Eastern Cape Ngqura Container Terminal

Overall Winner: Ngqura Container Terminal

First Aid Category

Province Winner

1st Place KwaZulu-Natal Maydon Wharf Terminal 1st Place Western Cape Cape Town Container Terminal 1st Place Eastern Cape Ngqura Container Terminal

Overall Winner: Ngqura Container Terminal

Firefjghting Category

19 ISO 9001 is an Audit International Management System Standard to ensure Quality of Products, Services and Customer Satisfaction. Unlike ISO 14001 and OHSAS 18001, ISO 9001 is a business model and includes services from all departments and enables the user to manage the interactions to ensure a high quality service or product. At the end of July, a Stage 1 Audit for ISO 9001 was conducted at the Saldanha

• Terminal. A Stage 1 Audit is undertaken to

check if the organisation’s system will be able to comply with the strict ISO 9001

• clauses. As this was the Saldanha Bulk

Terminal’s fjrst ISO 9001 audit, the anticipated outcome was for the auditor to indicate the gaps in the documentation system, whereas Stage 2 looks at the implementation of the documented

• system. The outcome for Saldanha

Terminal was zero fjndings. Achieving zero fjndings does not indicate that no improvement opportunities exist, as there are always opportunities to improve a

• system. The fjnding indicates that our

system is mature enough to pass the ISO/ SABS requirement and is a system that has the ability to supply high quality goods and services to its customers. This is the fjrst audit to be conducted at TPT’s Saldanha Terminal and whilst there are many improvement opportunities which have been identifjed, we are extremely proud to have achieved a zero fjndings rating.

Zero fjndings for Saldanha Bulk Terminal's fjrst ISO 9001 Audit

20

Another great idea: The

Innovation Programme at TPT

It is with great excitement that we formally announce the kickoff of the TPT Innovation

• Programme. The benefjts of this endeavor should

be signifjcant to the business, but more so to each and every one of you as it encourages all TPT staff to turn your great ideas into reality whilst working in teams with colleagues from different disciplines and backgrounds. HOW TO SUBMIT YOUR GREAT IDEA Send an email to tptinnovation@transnet.net that contains the following information:

• 1. The subject line should be titled IDEA
• 2. Your name
• 3. Your department and/or terminal
• 4. All your contact details
• 5. A brief explanation of your idea

If you do not have access to email, submit your idea to your Supervisor and/or Line Manager. Include all the information listed above. ANOTHER WAY TO SUBMIT YOUR GREAT IDEA

• 1. Nominate yourself onto a TPT Frenzy Team.
• 2. Submit a brief motivation to

your Supervisor explaining why you think you should be part of the Frenzy Team. You can also send an email to: tptinnovation@transnet.net

• 3. The subject line should be

titled: NOMINATION

• 4. Include your name,

department and all your contact details YOU CAN NOMINATE YOURSELF INTO A TPT FRENZY TEAM People who nominate themselves to be a part of a Frenzy Team will participate in brainstorming sessions, idea generation, fjrst level self- assessment of ideas and the preparation of a high level innovation advancement business case that will be taken to the Innovation Steering Committee for consideration at the next level of

• advancement. You may also get the opportunity

to become a Frenzy Team leader who facilitates the abovementioned process. Should an idea you have submitted be selected for further evaluation and development, you as the idea originator, will be a part of the team that develops the business case, and should that pass the gate review, you will be a part of the team that implements the solution. Upon successful implementation of your idea, you (and the team that assisted you) will be nominated as a contender in the Innovation category of the CE’s Ground Breakers Awards and stand the chance of winning the category. As part of the conditions of the Atmospheric Emission License issued by the District Municipality, TPT Saldanha together with TNPA as well as Interested and Affected Parties (I&AP) held its quarterly Environmental Stakeholder Forum in July. This forum engages on a quarterly basis with the main purpose

• f simplifying the fmow of information

between the public and the port. In October 2011 the public stakeholders and Transnet Port Terminals came to an agreement to create a platform that has representatives from different communities, including home owners and rate payers. There had been numerous requests from the public to visit the RO (Reverse Osmosis) Plant operations. Terminal Manager, Robert van Rooyen, and the Environmental Quality Department agreed to the request and at the close of the meeting all the delegates travelled to the RO plant and undertook a site tour during which technical explanations were also given. The tour session was received positively by the public stakeholders and it is believed it served to minimise their concerns and perceptions about the port environment. Robert van Rooyen communicated that the port is doing well in terms of mitigating dust and he also acknowledged that further measures were required and that plans are progressing with these.

Saldanha Environmental Stakeholder Forum

21 TPT commemorated Mandela Day in many different ways around the country. KZN REGION INCLUDING HEAD OFFICE undertook various activities such as painting of walls; general housekeeping; providing lunches to kids and donating goodie bags at the following organisations:

• Sizani HIV/ AIDS Projects (Wentworth)
• Isaiah 54 Children's Sanctuary (Bluff)
• Nkosi Sihawukele Disabled Care Centre in

Richards Bay WESTERN CAPE REGION Skaandal Kamp in Cape Town Cape Town Terminals employees collaborated with SAVE, a Non-Profjt Organisation whose aim is to improve the lives of the people, especially children in and around Cape Town. The 67 Minutes for Mandela initiative entailed collecting clothing and blankets for those less fortunate and delivering them to an impoverished informal settlement in Skandaal Kamp. Over 400 members of the community each received a blanket and clothing items to keep warm this cold winter in Cape Town. White City Daycare in Saldahna In Saldanha employees visited the White City Daycare where a great number of Transnet Port Terminals employees reside. They painted and refurbished two

• f the classrooms in the school which were damaged

and also shared winter blankets and a meal with the staff and children in the Daycare Centre.

Mandela Day

TPT CELEBRATES

22 In early June, Durban RoRo raised its voice around environmental awareness with a special visit from TPT GM: Safety, Security and Sustainability, Michelle Phillips. Together with the KZN GM: Operations, Zeph Ndlovu, Michelle addressed the Operations team at the car terminal, highlighting the importance of environmental consciousness not only within the terminal but also as an individual in society. Michelle quizzed the team on SHEQ-related trivia, handing out prizes to those who answered correctly, but not before providing a sneak-peek at activities planned for the rest of the year around the following environmental observations: The environment depends on YOU for its protection! Keep your eyes peeled for details on how you can become involved in these activities and how you can RAISE YOUR VOICE!

TPT raises its voice on World Environment Day

Sept 1-7

• Arbor week

Sept 15-21

• National clean-up week

Sept 16

• International Day for Preservation of the Ozone Layer

Sept 19

• Recycling Day SA

Sept 20

• International Coastal Clean-up Day

Sept 21

• Zero Emissions Day

Oct 6-10

• Marine week

Legal & Compliance

TPT Legal and Compliance strives to maintain a high standard of service whilst delivering legal advice that moves the business forward. With every issue of the Portside Magazine we will bring you highlights, trends and case law that impacts on the business, keeping you informed and empowered to make the necessary business decisions.

RESHAM ATHMARAM:

EXECUTIVE MANAGER 23 Economic growth within any company is pivotal and ensures that the business remains competitive, innovative and provides optimum service to its customers. Transnet Port Terminals has an obligation to promote customer relations and to market the company to potential customers in terms of the conditions of TPT’s Terminal Operator Licences. In terms of the National Ports Act No. 12 of 2005, The National Ports Authority (TNPA) must ensure that adequate, affordable and effjcient port services and facilities are provided and that TPT in terms of licences is obliged to provide reliable, secure and effjcient services and facilities to the port users. Hence TPT is strongly encouraged to ensure that it adheres to this mandate to provide effjcient and competitive services. Any terminal within TPT that wishes to render a value-added service by handling or providing a service that was not provided prior to the announcement of the Act on 26 November 2006, expand or develop an area within a certain port that is not within the terminal boundaries as contained in the licences, or alter, expand or develop an area within the terminal boundaries, can submit their intention to do so to the TPT Legal Department who will in turn assist the terminal to put together an application for submission to the TNPA for the amendment of the licence to include the new commodity and/

• r service.

Some of our recent successful applications include the Manganese Skiptainer operations at Port Elizabeth, East London and Saldanha Bay terminals which are serving to progress the way in which we service our customers and ensure that TPT remains at the forefront of technology. “Moving TPT forward through competitive, effjcient and reliable port services. ”

Developing and expanding our terminal footprint:

Applications to handle new commodities

By: Nontokozo Lingishi, Legal Advisor National Ports Act

Legal & Compliance

24

Marine Insurance:

• nly 4 000 years old

By: Buyisile Hlatshwayo - Insurance and Claims Manager When we look back in history we see the need for guaranteeing against a loss goes way back to Babylonian times, around 2 100BC, when the Code of Hammurabi was the fjrst basic insurance policy.

This policy was paid by the traders in the form

• f a loan to guarantee the safe arrival of their

goods by caravan. The perils our transportation industry face today are the same as back then such as robbery, bad weather and breakdowns. In the year 3 000BC, Chinese merchants dispersed their shipments among several vessels so as to minimise the possibility of damage to their products. The earliest account of insurance came in the form of ‘bottomry, ’ a monetary payment that protected traders from debt if merchandise was lost or damaged. As time went on, the need for insurance

• increased. The Phoenicians and the Greeks

wanted the same type of insurance with their seaborne commerce. In medieval times, the guilds protected their members from losses resulting from fjre and shipwreck, paid ransom to pirates, and provided respectable burials as well as support in times of sickness and poverty. The fjrst actual insurance contract was signed in Genoa in 1347. The policy, which was in Italian, was called “the Santa Clara” and appears in the form of a maritime loan to avoid the church prohibition against usury. The policies were signed by individuals, either alone or as a group. They each wrote their name and the amount

• f risk they were willing to assume under the

insurance proposal. That is where the term underwriter came from. The practice of insuring cargo while it was being shipped was widespread throughout the maritime nations of Europe. In 1688, the fjrst insurance company was formed, in London. It all started at the Lloyd’s Coffee House; a place where merchants, ship owners and underwriters met to transact their business. Lloyd’s came up with the idea of insuring cargoes by charging a premium. Within six months, this business proved so successful that offjces were opened. This was the start of the company we know today as Lloyd's of London. South Africa Despite this long history of marine insurance, there is no South African legislation dealing specifjcally with the sector. What we have is the Short-Term Insurance Act of 1998, which includes ‘transportation’ policies and applies to hull and cargo. The Act is mostly concerned with formalities and contains very little general

• principles. It does, however, have provisions

relating inter alia to the nature and effect

• f misrepresentation and warranties. As for

questions not regulated in the Act, South African marine insurance legislation is founded upon and has as its fallback system Roman-Dutch common law. Roman-Dutch marine insurance law was in turn based upon the developed European marine insurance law of the 17th and 18th

• centuries. South African common law however

is the importation of later English law, primarily through the direct application of English Insurance law from 1879 to 1977. As we know it today… Maritime or marine insurance covers the loss

• f or damage to a ship or boat, as well as the

loss or breakage of cargo over the waters, land

• r air. Maritime insurance is essential for any

shipowner or cargo business. Each country has their own laws dealing with insurance matters, however by the very nature of international marine transit there are common factors governing marine insurance across the world –“over the seabed and ocean fmoor” . Admiralty Courts assume jurisdiction by virtue

• f the presence of a vessel being in its territorial

jurisdiction irrespective of whether the vessel is national or not and /or whether registered in the specifjc country or not, and wherever the residence or domicile of their owners may be. The common primary aspects of marine insurance across the world are: seaworthiness

• f a vessel, limitation of shipowner’s liability,

personal injuries to passengers, cargo claims, personal injuries to seamen and maintenance and cure, maritime liens and mortgages, salvage and treasure salvage, marine pollution, war risk, terrorism and piracy.

25 The Consumer Protection Act (CPA) is designed to prevent suppliers from taking advantage

• f consumers and infringing their rights. The

CPA applies to contracts signed or products purchased before 1 April 2011. The CPA aims to enforce the rights of consumers through a broad range of stipulations. Below are some of them: You as a consumer have the following rights:

• 1. Have the right to opt out of receiving

unsolicited direct marketing services. This would be done by following the opt

• ut instructions provided with the original

communication

• 2. Suppliers are not allowed to auto-renew

fjxed term contracts. Contracts will run on a month-to-month basis after expiration and can be cancelled by the customer with 20 business days’ notice

• 3. You won’t be liable for any repairs or

maintenance services done without your prior approval

• 4. Customers have the right to cancel

purchases or contracts within fjve days (cooling off period) if they are as a result of direct marketing. This applies to any form

• f direct marketing eg mail, TV, personal

approach, etc

• 5. Customers have the right to cancel advance

bookings, reservations or orders. However, the supplier is entitled to impose a reasonable charge for the cancellation

• 6. Customers have the right to return unsafe
• r defective goods within six months of

purchase and request a repair, replacement

• r refund. This does not cover goods which

have been abused or misused. Repaired goods must be replaced or refunded if they become defective or unsafe within 3 months

• f repair
• 7. Companies are not allowed to charge

exorbitant charges of R 5 or R 10 to enter an SMS or MMS completion, but must stick to the usual network rates Where to complain? National Consumer Commission: Tel: 0861 843 384 Fax: 012 394 2558 Email: contactus@the dti.gov.za Or write to: DTI, National Consumer Commission, Consumer Complaints, and Private Bag x 84, Pretoria, 0001.

Know your consumer rights:

The Consumer Protection Act and you

By: Xolani Mthethwa - Legal Advisor: Litigation, Labour and Administrative Law

What does and doesn’t constitute a cyber crime? The Electronic Communications and Transactions Act 25 of 2002 deals comprehensively with cyber crime and has created legal certainty as to what may or may not constitute cyber crime. Section 85 of the Act defjnes ‘cyber crime’ as the actions of a person who, after taking note of any data, becomes aware of the fact that he or she is not authorised to access that data and still continues to access that data. Section 86(1) provides that, subject to the Interception and Monitoring Prohibition Act, 1992 (Act 127 of 1992), a person who intentionally accesses or intercepts any data without authority

• r permission to do so, is guilty of an offence.

In R v Douvenga (District Court of the Northern Transvaal, Pretoria, case no 111/150/2003, 19 August 2003, unreported) the Court had to decide whether an accused employee GM Douvenga of Rentmeester Assurance Limited was guilty of a contravention of section 86(1). It was alleged in this case that the accused had intentionally and without permission to do so, gained entry to data which she knew was contained in confjdential databases and/or contravened the provision by sending this data per email to her fjancé to ‘hou’ which means to keep. She was found guilty and punished for her crime. Hacking is outlawed in our law which makes any unlawful access and interception of data a criminal

• ffence and this includes interference with data.

Denial of Service (DOS) attacks are also popularly known as Disk Operating System attacks that cause a computer system to be inaccessible to legitimate

• users. Any person who commits this act with intent

to interfere with access to an information system so as to constitute a denial, including a partial denial of services to legitimate users, is guilty of an

• ffence.

CYBER CRIME

By: Nosisa Nzuza - Legal Advisor: Litigation and Labour Law

26

National Prosecution Authority and the

enforcement of eco laws

By: Dududla Maoela - Legal Advisor: Capital Procurement The past few years have seen the National Prosecution Authority (NPA) placing more emphasis on the prosecution of environmental offences with a number of signifjcant and forceful judgments being handed down by our courts.

In the matter of State v Frylinck (2011), the facts were briefmy as follows: Frylinck, an environmental assessment practitioner (EAP) employed by Mpofu Environmental Solutions CC, was appointed by the Department of Public Works to conduct a Basic Assessment Report (BAR) for the proposed development of the Pan African Parliament buildings. The EIA Regulations require, inter alia, that the practitioner must be independent (and must declare such independence under oath) and further provide that the furnishing of any incorrect or misleading information in the environmental impact assessment (EIA) process is a criminal offence. In the basic assessment report, Frylinck indicated that there was no wetland present within a 500m radius of the site and had informed the relevant offjcer at the department that a wetland delineation study was not

• necessary. However, once construction had

begun, concerns were raised by national and local government departments regarding the existence of a wetland on the site. An investigation was initiated and its presence in the area was confjrmed. Frylinck was charged with fraud and a contravention of regulation 81 of the 2006 EIA Regulation under the National Environmental Management Authority (NEMA). The court held that Frylinck’s conduct proved wilful disregard

• f the required standard of conduct by an EAP

in relation to the existence of a wetland on the site, and that the practitioner was negligent. The information contained in the BAR was incorrect and the EAP had therefore provided incorrect

• r misleading information to the competent

authority. He was acquitted of the charge of fraud. However, he was found guilty in respect of the contravention of regulation 81 of NEMA and sentenced to two years or a fjne of R80 000 and his fjrm was sentenced to a fjne of R80 000 with half of the fjnes being suspended for fjve years. Frylinck’s conviction highlights the important role that the EAP plays in the EIA process and the need for a practitioner to ensure that he/ she presents accurate information in the EIA process and to understand the extent of his or her legal duties under NEMA and the regulations promulgated thereunder. Another landmark case of Blue Platinum Ventures (2013) refmected the issue of our courts imposing personal liability on directors for environmental offences caused by their

• companies. It was the fjrst case in South Africa

where an executive of an offending company was held criminally liable and sentenced without the

• ption of a fjne under NEMA for environmental
• ffences relating to mining activities

undertaken. This judgment will result in executives paying more attention to the conduct of their employees and the risk of damage to the environment caused by their activities. It will also see executives placing greater emphasis on having environmental management systems in place and ensuring they are strictly monitored and enforced. Further, these cases indicate that the courts are prepared to pierce the corporate veil.

27 On 11 April 2014, the Minister of Water and Environmental Affairs determined 2 May 2014 as the date on which Part 8 of Chapter 4 of the National Environmental Management: Waste Act 59 of 2008 (NEM:WA) would come into effect. These provisions apply to the contamination of land even if:

• it occurred before the statute's

commencement

• arises or is likely to arise at a different

time from the actual activity causing the contamination

• r arises through an act or activity

that results in a change to pre-existing contamination “Contaminated” in relation to land is defjned as: “the presence in or under any land, site, buildings

• r structures of a substance or micro-organism

above the concentration that is normally present in or under that land, which substance or micro-organism directly or indirectly affects or may affect the quality of soil or the environment adversely” . Duty to notify1 An owner of land (TNPA) that is signifjcantly contaminated, or a person who undertakes an activity that caused the land to be signifjcantly contaminated (TPT), is to notify the Minister and MEC of that contamination as soon as that person becomes aware of the contamination. The obligation to provide notifjcation of such contaminations thus applies to TNPA as the

• wner of such sites or TPT as the entity that

undertakes the activity that may cause/caused the contamination. Consequences of identifjcation and notifjcation

• f investigation areas

The Minister or MEC may issue a written notice to TNPA identifying land as an investigation area if there are reasonable grounds to believe that the land is or is likely to be contaminated. The Minister or MEC may request TPT to undertake the site assessment at their own

• cost. The result of the site assessment must be

reported in a Site Assessment Report. Transferring remediation sites TNPA may not transfer contaminated land without informing the person to whom that land is to be transferred that the land is contaminated and, in the case of a remediation site, without notifying the Minister or the MEC and complying with any conditions that are specifjed by them.2 Non-compliance It is an offence to fail to provide notifjcation of contamination.3 Furthermore, a person who is convicted of this offence is liable to a fjne not exceeding R5 million or to imprisonment for a period not exceeding fjve years, or to both a fjne and such imprisonment, in addition to any

• ther penalty or award that may be imposed or

made in terms of the National Environmental Management Act, 107 of 1998 (“NEMA”).4

Contaminated land provisions By: Siwe Mpanza - GIT Compliance

28 The South African Competition Commission is empowered (Sections 46 to 49A of the South African Competition Act of 1998) to conduct surprise search and seizure visits and to carry out so-called “dawn raids” on a fjrm’s business premises in order to inspect documents and interview staff where an infringement of competition law is suspected. Documents and electronic data can be seized and analysed together with other information already gathered to determine whether a contravention of the Competition Act has taken place. In terms of the Competition Act, the commission has the power to search and seize documents where there are reasonable grounds. The Commission is empowered to enter any such premises when a judge or a magistrate has issued a warrant. Although a warrant is usually an essential requirement to ensure that a dawn raid is conducted in accordance with the law, the Competition Commission does have the power in exceptional circumstances to enter and search premises without a warrant. There is a need for local and international companies operating in South Africa to implement and maintain a competition law compliance

• programme. An effective programme should

educate employees about the importance of competition law compliance and the basic principles embodied in the Competition Act. Staff should also be prepared to handle interactions with the competition authorities, including dawn raids. In the event of a dawn raid, an organisation should immediately contact its legal advisers who can assist with ascertaining whether the search and seizure is correctly authorised, and in ensuring that it is conducted in such a way that its constitutional rights are protected and there is minimum disruption in the organisation. In addition to implementing and maintaining a competition law compliance programme, a competition law audit of legal agreements, policies, marketing materials and the fjrm’s practices may also be necessary, particularly if the company interacts with competitors in bodies such as industry associations. Reporting procedures should be established in order to detect possible contraventions and bring them to the attention of in-house legal counsel as soon as possible. This not only mitigates competition law risk, but also places the company in the best possible position to consider applying for leniency, if the need arises. In light of the increased enforcement focus of the Commission, it is never too soon to begin.

Dawn raids conducted by the Competition

Commission

By: Sindisiwe Mafu, Legal Advisor: Commercial Contracts

APPOINTMENT OF GM: EIMS

Ms Deirdre Ackermann was recently appointed as the General Manager: Enterprise Information Management Systems and Innovation Strategy. Deirdre is an experienced business information technology professional and has extensive experience. She has a proven track record in creating and delivering complex IT strategies, IT transformation, business intelligence and executing major business change programs in both large complex businesses and start-

• ups. She has worked extensively in the

telecommunications, fjnancial, retail, medical health and supply chain logistics sectors in South Africa, Africa, the Middle East and the United States. Some of her major responsibilities within TPT will be to make EIMS a more strategic business partner by creating value within the business via various projects including:

• Customer Relationship Management
• Just in Time Business Intelligence
• Real Time Operational Intelligence

(Intelligent Plant)

• Fleet Management
• Embedding Innovation into TPT DNA

Deidre has a Doctorate in Science, specialising in Management Information Systems and has a Masters in Business Administration.

29 AVRIL JANSEN: Employee Assistance Programme Manager Avril Jansen has been appointed as the Employee Assistance Programme (EAP) Manager for Cape Town Terminals, effective June 2014. Avril is a qualifjed nurse with 19 years of work experience of which fjve years was in England as a Senior Nurse. She holds a Diploma in Nursing; BA in Health Sciences & Social Services; Honors degree in Psychology and has completed an EAP Short Course through the University of Pretoria. Previously she worked with Metropolitan Health Hospital Risk Management and was Client Relationship Manager within the Metropolitan Employee Wellness unit where she was responsible for analysing and interpreting client EAP utilisation. SINDISIWE MAFU: Legal Advisor Sindisiwe Mafu has been appointed Legal Advisor, Commercial Contracts, Legal & Compliance

• Department. She is an

admitted Attorney, Conveyancer and Notary Public and is currently pursuing her Masters in Commercial Law at UNISA. Prior to joining TPT she was in practice where her areas of specialisation were property and commercial law. Her professional experience includes amongst

• ther things, drafting, reviewing, interpreting,

commenting on and performing remedial work in respect of commercial contracts/ transactions, competition law, advisory services and legal due diligence. Part of her role includes development of a framework to proactively manage the implementation of commercial law strategy, identify and mitigate commercial and competition law risks and exposures. LINDIWE MNCWABE: Revenue & Pricing Manager (HQ) TPT welcomes back Lindiwe Mncwabe who has been appointed Revenue & Pricing Manager. Lindiwe is no stranger to Transnet / TPT, having previously held various positions within the group - the Costing, Viability & Project Manager at TPT HQ as well as Management Accountant at Pier 1. She left Transnet to join Standard Bank as Senior Manager, Cost and Management

• Accountant. Before joining TPT Lindiwe held the

position of Manager Costing at Transnet Freight Rail. LUNGILE MNGOMEZULU: Governance Specialist, Procurement HQ HQ welcomes Lungile Mngomezulu as Governance Specialist,

• Procurement. Lungile is

an Admitted Attorney. She holds a bachelor’s degree in Law and a National Certifjcate in

• Management. She previously practiced as an

Attorney for Masipa Incorpoated Attorneys. Lungile also held various positions, amongst

• thers, the KZN Divisional Manager for Bidvest

Umoja Property Solutions as well as the Acquisition Banker for ABSA Non-Branch Sales and Telecommunications experience gained from MTN, Vodacom and Virgin Mobile. TERSHIA NAIDOO: Analyst, Planning & Monitoring Tershia has been appointed Analyst, Planning & Monitoring. She holds a Bachelor

• f Business Science

(Finance) from the University of KwaZulu-Natal. She started at TPT in January 2013 as a graduate-in-training in the Results Management Offjce (RMO). Her responsibilities involve comprehensive

• rganisational planning, accurate tracking

and monitoring of business performance and identifjcation of risks to achieving TPT’s strategic objectives PHIWOKUHLE SAPULA: Engineer-In- Training Technical Department, Richards Bay ABIGAIL ZWANE: Planning Offjcer, Commercial & Planning Department HQ

Transnet Port Terminals welcome the following new employees. We hope you have a rewarding career with us.

NEW APPOINTMENTS

Sustainability: energy news

TPT National Energy Audit

The national terminals energy audit ie lighting and hot water installation, has been completed successfully. The overall estimated savings for all terminals is about 17,4 MWh per annum which translates to R18 million annually. This equates to about 8% saving in terms

• f total electricity consumption and 50%

energy savings on lighting and the hot water system. The anticipated capital cost is about R116,8 million. The calculated payback period on this project is about six years with the Eskom rebate estimated to be R10,6 million. The implementation work will start in September 2014 and be completed in the 2014/15 business fjnancial year.

TPT National Energy Online Metering Project

The national electricity online metering project for all 13 terminals is almost complete – around 360 smart energy meters have been installed. A dashboard display has been set up at TPT HQ. These advanced energy management tools will assist in effectively managing our energy consumption. Our aim is to monitor carbon dioxide emissions and report monthly sustainability savings using accurate data to enable us to make informed decisions and take appropriate action where needed. We supported the international Earth Hour initiative on 29 March between 08h30 and 09h30 in the evening – TPT HQ offjces in the Durban Kingsmead Offjce showcased

• ur support when the main supply to the
• ffjce was switched off. We saved 387

kWh which equates to energising 30 low- cost residential houses in one hour! We are committed to save energy not only during these initiatives but to continually make it part of our business life. MAKE IT YOUR GOAL TO SAVE ENERGY!

EARTH HOUR

I N I T I A T I V E S

Dress warmly during winter to use less heating fuel

ENERGY SAVING TIPS

Always switch off light fjttings when an area is not in use. Switch off lighting in reefer yards during the day. Use energy sparingly to help prevent load shedding Do not use a 3kW 3 phase to boil a 2 litre pot! Energy used to boil water on a stove is 20x more than the energy needed to heat water in a 2 litre kettle! Use energy wisely Switch off equipment (eg straddle carriers, reach stackers, forklifts etc) when not in use