IN THISISSUE

cargo volUmES | EaST loNDoN cElEBraTES BUmPEr YEar INfraSTrUcTUrE | INvESTINg for growTH HUmaN rESoUrcES | BUIlDINg a PEoPlE-cENTrIc PorT

NavigatorPort of East London Stakeholder Newsletter

The

May 2016

2015/16 YEar IN rEvIEw

The Port of East London welcomed an unprecedented 14 cruise liners during the 2015/16 season – the highest number of vessels ever recorded in a single season. This reflects a growing confidence among tour operators and shipping companies in East London as an enjoyable and viable destination on the southern African route, and bodes well for the port’s efforts to grow and develop its cruise tourism credentials.

“We are very pleased that so many cruise liners visited our port, and we look forward to this being the start of a positive new trend for East London,” Port Manager Jacqui Brown said.

East London celebrates bumper cruise season

MARITIME TOURISM

I am proud to report that 2015/16 proved a very successful year for the Port of East London, despite what many of you will be able to attest remains a very challenging

economic climate.

As our article on page 4 reflects, our success story cannot be read in isolation. Rather, it is closely linked to the success stories being authored by some of our most valued partners, including Mercedes-Benz South Africa, our other automotive customers, the wheat and maze industry and several new customers who are newly discovering East London’s considerable value proposition.

On that note, our hearty congratulations to Arno van der Merwe and the entire MBSA team for a record-breaking year in which the East London plant again proved that they are among the most productive and most cost effective automotive plants worldwide.

The tough economic conditions we all weathered in 2015 are undoubtedly going to continue into 2016, and beyond. As a port authority and a freight solutions partner to a number of industries, we are acutely aware that the Port of East London is a critical cog in the engine that drives growth and development in the Eastern Cape.

And while much of our success of the past year is a reflection of the port’s ability to capitalise on economic opportunies as they present themselves, the larger narrative is one of consistency. Our commitment to you, and our customers, is one of consistently fast turnaround times, consistently high service levels, consistently high efficiencies across all our operation areas.

As we embark on an aggressive new strategy of growth and development - including massive infrastructure expenditure over the next five years - be assured that our commitment to fostering close, mutually beneficial ties with our stakeholders remain absolute.

In fact, as our Customer Relations Manager Dirk Botes aptly expounds in the main article in this publication, East London will be placing even greater emphasis this coming year on working together to achieve the unifying objectives of region-wide economic development and sustainable, meanginful job creation.

We are, quite literally, in this together, and we invite you, our stakeholders, to walk this exciting path of growth with us.

This publication presents a concise reflection on the many highlights experienced during the past year. We share with you our infrastructure development achievements, but we also lift the lid on some of the exciting projects in the pipeline, which will modernise and streamline many of our port operations.

We have certainly achieved a lot, but I am proud and excited to say the best is yet to come.

We are entering an exciting new era of unlocking our ocean economy, thanks to the audacious government initiative, Project Phakisa, and East London is ready to step forward to take our rightful place at the heart of this programme of economic acceleration.

Thank you again for your partnership. I look forward to an exciting new chapter in our mutual success story.

Jacqueline BrownPort Manager

Message from the Port ManagerDear Valued Customers, Partners and Stakeholders,

3

MBSA, wheat imports drive

bumperCArGOyeAr

Despite challenging economic conditions throughout 2015, the Port of East London ended the financial year on a high note,

reporting substantial increases in overall port volumes.

4

Our turnaround times are already

among the best in the country,

if not on the continent, and we

are focused, going forward, to keep

improving on that.

CARGO VOLUMES

EAST LOnDOn’S bumper year was driven largely by the success of Mercedes-Benz’s W205 model, which was produced in record numbers, resulting in automotive volumes moving through the Port of East London being 44% above target.

“Our biggest area of growth has definitely been automotive, thanks to MBSA’s excellent year of above-target exports,” says Customer Relations Manager Dirk Botes.

“The good news for East London is that this trend is set to continue in the short to medium term. MBSA’s East London plant is managing to stay exceptionally competitive – in fact, it is one of the most competitive in the world, producing cars at a per-unit cost that is lower than many if not most of their sister plants scattered around the globe.

“This means that demand, which was above expectation in 2015, is likely to continue being high throughout the current financial year, and beyond, which obviously has a direct spin-off benefit for the Port of East London.”

“MBSA achieved above-projection exports during 2015. This is set to continue, so from a port perspective, we must ensure that we can handle that capacity within a seamless logistical flow.”

Botes said the port had introduced a range of measures, including a joint operations centre, to further streamline and enhance efficiencies and improve overall productivity.

“Our turnaround times are already among the best in the country, if not on the continent, and we are focused, going forward, to keep improving on that.”

Dry bulk volumes were also significant higher than anticipated as a result of a huge increase in maize imports,Botes says.

This, too, is set to continue in the near to medium term as efforts continue to offset the effects of the ongoing drought being experienced throughout South Africa.

“Dry bulk volumes were more than 30% above target. The port had budgeted to handle 80 000 tons of wheat, but managed to exceed our projected volumes by 45 000 tons.”

Container volumes were also up – about 2% above target, while three cement consignments not budget for saw break bulk volumes at 100% above target.

“The port benefited from liquid bulk imports being 100% above target due to deep sea imports of automotive diesel oil to supplement shortage of refined diesel,” Botes says.

On the break bulk side, though, East London lost sizeable scrap metal exports, due to tighter

government controls being affected.

In terms of new Department of Trade and Industry (dti) regulations, scrap metal cannot be exported unless they are first offered for sale domestically, for a specific time period and preferred price.

“This allows domestic buyers of scrap metal, such as foundries and mills, to get product at a preferential price of up to 20% below international spot price, which has adversely affected our scrap metal exports.”

The port has also benefited from large consignments of cement imports from Pakistan, however this trend is not expected to carry over into the current financial year.

“We’ve been fortunate thus far, but we will need to keep our productivity levels exceptionally high to ensure the movement of cement – both imports and exports – remain cost effective.”

Botes is optimistic that the Port of East London can – and will – repeat last year’s excellent numbers. “I am confident of repeating our success in 2016,” he says. “We are seeing continued growth in grain imports, and we have also seen a substantial increase in the number of car carriers arriving, which, as I said, looks set to continue into this current financial year.

“Beyond this, we are focused on diversifying our cargo profile and have a number of strategies to attract new customers to utilise port facilities. Our focus going into 2016 is therefore twofold: consolidating our success by further improving on efficiencies and turnaround times, and attracting customers by showcasing the exceptionally value proposition that East London offers, including total customer care and personalised flexibility.”

One of the customer care strategies East London is implementing this year includes working closely with stakeholders in terms of developmental planning.

“We are reaching out to key customers and inviting them to involve us more closely in their freight and cargo planning,” Botes explains. “That we we can guarantee capacity, ahead of demand, to ensure that the port is ready to offer the most appropriate and most cost-effective cargo solutions.”

Another aspect of this strategy is closer cooperation with other Transnet divisions, including Port Terminals and Freight Rail, to offer holistic solutions to cargo challenges.

“Our aim is to be fully customer and solutions oriented, to work closely with our stakeholders and customers to engineer solutions that benefit the customer, the city and the entire region.”

“

CustoMer relations Manager Dirk Botes

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TnPA’s Market Demand Strategy (MDS), which is being rolled out in conjunction with Project Phakisa, requires that all ports modernise and streamline all aspects of its freight and cargo operations, to capitalise fully on future growth opportunities.

In line with this strategy, the Port of East London is rolling out an expansive infrastructure development programme which will not only improve key assets in the port precinct, but also significantly enhance overall operational efficiencies.

In addition to better servicing existing customers, the projects currently underway will also ensure that East London is optimally positioned to capitalise on the exciting opportunities envisaged by national government’s marine development strategy, Project Phakisa, which would see East London transform into a shipbuilding and ship repair hub.

“Our focus is two-fold,” says senior port engineer Owen Hensburg. “We need to make sure that our infrastructure is fully capable of servicing our existing clients’ needs, but we also need to take a medium to long-term view.

“The maritime industry is constantly growing and evolving, which means our customers’ needs are changing. We need to stay ahead of the curve by anticipating future demands on our facilities, and making sure we can deliver on those demands.”

The Port of East London currently has five major infrastructure development projects in development:

• West Bank Foreshore Protection Project – R140-million

• Sheet Pile Wharf Rehabilitation – R128-million

• Tanker Berth Fire Protection System – R60-million

• Precinct-Wide Security Upgrade – R56-million

• Refurbishment of the Princess Elizabeth Graving Dock - R108-million

InVEStInG fOR GROwth

east london gears uP for

projectphakisa

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West Bank foreshore Protection ProjectThe R140-million foreshore protection project, which got underway in 2014, is an impressive engineering undertaking that requires the deposit of over 50 000 cubic metres of armour rock along a 900m stretch of coastline along the West Bank to address long-term erosion and natural degradation.

Despite the many technical difficulties associated with this project, including sourcing the correct type of rock, and transporting the massive, 10-ton boulders utilised – the project is on track to be completed by September, says chief engineering technician Sinqobile nkabinde.

“The project fell slightly behind at one stage due to the unavailability of local materials, but after a minor redesign we are back on track, with the contractor fully committed to delivering this project within the stipulated timeframe.”

One of the standout features of the foreshore protection project is its environmental sensitivity, and long-term sustainability.

“We could have opted to use concrete, which would have been a simpler project on a number of fronts, but rock is a more natural option which will last longer, will require less maintenance and also be

aesthetically more in keeping with the natural shoreline,” nkabinde says.

Another key benefit of rock is its flexibility. “Unlike concrete, rock can be easily shaped and modified to accommodate future port growth and expansion. Ours is a growing port with huge potential for expansion to meet future growth, and this project is mindful and accommodative of that.”

sheet Pile Wharf rehaBilitation

Another key project currently underway is the rehabilitation of a 85m section of East London’s sheet pile wharf.

Sheet piling is an earth retention and excavation support technique that retains soil, using steel sheet sections with interlocking edges. Sheet piles are installed in sequence to design depth along the planned excavation perimeter or seawall alignment.

This is a routine replacement due to long-term degradation, the existing wharf having been constructed in 1943.

“This is proving another challenging project from an engineering perspective due to the prevailing geotechnical ground conditions,” says project manager Lwanda Sidlayi. “What should have been a fairly simple like-for-like replacement has been complicated by

the underground rock conditions, but we have done a thorough geo investigation and the project is on track

newly commenced, this project is projected to be completed by early 2018, with the immediate benefit of being able to accommodate much larger vessels than is currently possible.

“As with all our capex projects, the overriding objective is to improve and enhance our facilities with the specific aim of better meeting customers’ needs, both existing needs but also future needs. The rehabilitation of our wharf is an important part of this strategy.”

tanker Berth fire Protection systeM

The petroleum industry is both an important stakeholder and a prime cargo partner, and quay-side safety standards are constantly upgraded to the latest and most rigorous international specifications.

To this end, the Port of East London embarked on a 60-million project to upgrade tanker berth fire-fighting equipment, which was completed in April this year and is currently undergoing commissioning.

While the replacement of the relevant pumps and decommissioning of redundant equipment had been a fairly

InfRAStRUCtURE

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speedy process, the sourcing of the pumps, which had to be imported from the United States, resulted in this project having had a lengthy lead period.

On the mechanical side, the necessary pumps have been installed, the foam admixture units have been delivered to the contractor's workshop and the installation of the salt water discharge pipes has been finalised.

“Our commitment to safety is absolute, and this is just the latest in a range of measures and precautions to ensure that we move cargo in and out of the port in the safest way possible,” said project manager nolonwabo Zamani.

“Our existing equipment, while still perfectly capable of serving their purpose, was becoming more difficult to service due to the growing unavailability of components. This upgrade ensures that we are optimally positioned to maintain the highest safety standards.”

security uPgradeThe Port of East London is a site of national strategic importance, as designated by the South African national Key Points Act. As such, security is one of the port’s top priorities.

East London already complies with the most stringent requirements of the International Ship and Port Facility Security (ISPS) Code, but a further R56-million has been ploughed into both structural and technological upgrades throughout the port precinct since 2014.

“It is of critical importance for the port to effectively control access and to monitor movement in and out of the port precinct,” Kuhn says.

To date, the port has upgraded all entrance structures, including adding barrier spikes and installing biometric readers.

Port engineers are now ready to roll out the next phase of this

upgrade, which includes an expansive surveillance upgrade, with cameras due to be installed throughout the port.

“Our primary objective is obviously security, but an associated benefit is that a streamlined, effective port security and surveillance system will definitely enhance our operation efficiencies as well, and make it safer but also, ultimately, easier for our partners and stakeholders to move effectively through the port.”

The security upgrade, Kuhn says, is a multi-disciplinary project which has necessitated extensive IT upgrades as well.

“The security upgrade demanded that we upgrade our entire fibre network, going from a 1GB network to a 10GB network. This ten-fold increase in network speed is, in addition to facilitate our security needs, also bringing benefiting all other operations that depend on connectivity.”

With the surveillance phase of the security upgrade drawing to a close, the port will now embark on an intensive two-month internal and external awareness and education campaign.

refurBishMent of the Princess elizaBeth graving dockThe Port of East London has been earmarked as a ship repair hub, in terms of government’s ocean economy blueprint, Project Phakisa. To prepare for this exciting prospect, East London has embarked on an ambitious plan to refurbish and modernise the 69-year-old Princess Elizabeth Graving Dock.

The project involves upgrading all cranes and crane tracks and refurbishing the caisson gate and pumps. With the design and assessment phase of the project already completed, engineers have now moved to the planning and preparation phase.

InfRAStRUCtURE

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stakeHolDer ManageMent

Building strategic relations to harness port growth prospects

THE need to nurture and harness thriving stakeholder relations is one of the key strategic dimen-

sions and focal areas for the Port of East London.

Key to this is the understanding of stakeholder perceptions and expecta-tions in relation to the port mandate and to strive towards striking a balance for seamless engagement by both par-ties.

“The Port of East London has been instrumental in interfacing with diverse stakeholder groupings towards impart-ing knowledge and understanding of the port business and the inherent de-cision making processes,” says Ms Jac-qui Brown, the Port Manager.

“This is evident from the past joint collaborations which has enabled infor-mation gathering from the insights and perspectives expressed by various stake-holders.”

Stakeholder management is one of the ethos espoused by the Transnet Group as our business exists in a dy-namic environment that requires flex-ibility and ability to understand cus-

tomer expectations and work towards addressing them.

“Our approach is to position the port as a key role player in the province through packaging prevailing opportu-nities across the regions including the hinterland that can be exploited in the near future,” adds Ms Brown.

Among the key strategic projects and opportunities that requires robust stakeholder engagement include the deepening and widening of the en-trance channel, maritime tourism, Op-eration Phakisa, and alignment to the Buffalo City Metro Growth and Devel-opment Strategy (MGDS) and the Pro-vincial Growth Development Plan (PDP) in the medium to long term horizons.

The Internet of Things phenomenon has ushered a new way of doing busi-ness and enables endless opportunities in the port system for integration of ser-vice offerings.

The port system is focusing on migrat-ing from the traditional ways of doing business towards embedding technol-ogy as the back – bone of all systems and operations.

“The port of East London has been heralded among the ports that have made a commendable progress in the implementation of the Integrated Port Management System (IPMS) with maxi-mum use by the customers,” Ms Brown emphasises.

“This system allows our customers to upload their service requests (ID 100) at their convenience through embrac-ing technology and thereby makes the process of interacting with the port seamless.”

The Smart Ports People Concept is among the focal areas moving forward where a concerted effort will be made towards integrating the ports as an in-tegral part of the city and the entire citizenry.

“The Smart Ports People Concept requires seamless integration of the business operations by introducing ed-ucational and empowerment oriented activities in order to expose the com-munity in the overall port business,” she says.

“This will be realized by infusing tech-nology as an enabling feature.”

Our approach is to position the port as a key role player in the province and packag-ing regional offerings through looking at prevailing opportuni-ties in the hinterland and other growth prospects that can be maximized in the near future

- Jacqui BrownEast London

Port Managersixolile Makaula Manager: Business Strategy & Stakeholder Relations

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Deepening anD wiDening for econoMies of scale

Economies of scale have seen rapid growth in the size of container ships and passenger liners, putting ports around the world under increasing pressure to accommodate

ever-larger vessels.

A mere 10 years ago, the largest container ship ploughing the oceans was the Gudrun Maersk, with a TEU capacity of just over 10 000 TEUs. Today, the giant of the ocean is the MSC Oscar, capable of carrying 19 000 TEUs.

While ships of Gundrun Maersk’s girth and capacity as still an anomaly, there are currently 163 ships sailing the world’s oceans seas with a capacity over 10 000 TEU – and 120 more are on order, including Maersk's new generation fleet of ultra-large 20 Triple Es.

And while East London is unlikely to be called on in the near future to berth outsized container vessels, it is critically important for the port to ensure it stays relevant and competitive, says port engineer Alvin Singama.

“Providing world class port infrastructure is a pre-requisite to compete in global markets,” he notes. “East London, with a number of blue chip companies making use of our facilities, needs to ensure that we compare favourably with the best ports in the world.

“The upgrades and infrastructure developments currently taking place are essential to ensure we remain competitive and further enhance our reputation as a modern, world-class facility with world-class service, security and efficiency standards.”

The East London port channel was designed in the 1930s, says Owen Hensburg. “While this has served us well over the years, widening and deepening the entrance to accommodate the new generation of container vessels and car carriers has now become a critical priority for East London if we want to continue bringing these vessels in safely.”

Underlining the urgency of this project, East London has already had to turn away a number of car carriers who could not be safely accommodated due to size, he says.

“Customer service, along with safety and operational efficiencies, are East London’s top priorities. Being forced to turn away larger vessels, which makes it more expensive for customers to move cargo through the port, threatens our ability to be globally competitive.”

For this reason, the deepening and widening project, though only in its pre-feasibility stage, is a critical priority for the port in the short to medium term, he says.

Current estimates suggest the project will move into full feasibility phase during the current financial year, with a view to beginning a multi-phase implementation arc within the next three to five years.

“We are obviously motivated by current need and how to ensure that the port remains efficient and competitive, but any project of this magnitude must also consider long-term forecasts, so this is definitely a multi-year project for us.”

Deepening anD wiDening for econoMies of scale

Port Engineer ALvIn SInGAMA

InfRAStRUCtURE

BuiLding a peOple-CeNTriC pOrT

The Port of East London is com-mitted to being a people-centric port that prioritises the per-sonal and professional develop-

ment of its human resources.

To this end, the 2015/16 financial year allowed the port many opportunities to upskill existing staff, attract top new tal-ent and make meaningful contributions to empowering women, the youth and other marginalised groups.

“It’s been a very good year in terms of growing our human capital and strengthening our team,” says Human Resources Manager vicky Wessels. “Our HR strategyof capacity development is definitely paying off, and is positioning the port well to deliver on our strategic and operational goals.”

This commitment to building a strong team is evidenced by East London’s con-tinued strong showing in TnPA’s group-wide Culture Charter measurements.

East London recently learnt that it scored second highest nationally in the TnPA Culture Charter rankings, being outperformed only by Mossel Bay.

“This is a big achievement for the port, and indicative of our very strong safety mind set, but also of the fantastic rela-tionships that exists within the port,” Wessels says.

Staff development

Staff development is a key priority in East London, and to this end, the port promoted seven employees and hired 11 new staff members during the past financial year. In addition to the 11 new team members, employed across a number of different departments, the port also added four Young profession-als (YPs), who are receiving invaluable on-the-job training in key port portfo-lios.

“This is an important programme for us because the port is committed to ca-pacitating and creating training oppor-tunities for young professionals in our

region. It also allows us to draw impor-tant skills sets in areas like economics, engineering and environmental sciences into the maritime environment, to help grow our industry,” Wessels says.

Training and professional skills develop-ment is also a core focus area for the port, she notes, as it speaks to TnPA’s over-arching Market Demand Strategy (MDS), which prioritises creating capac-ity ahead of demand.

“This is definitely a big focus area for us. You can only grow as a port if you en-courage and facilitate the growth of in-dividual staff members, so this financial year, we awarded a further six bursa-ries for qualification improvement, and sent staff on more than 80 short-course training programmes.”

A further seven junior managers and supervisors have also been identified to attend a Black management Forum (BMF) leadership development course this year, while 11 apprentices are being assisted to pursue n1 and n2 theoretical study through the Buffalo City FET Col-lege.

“We make sure that our capacity and skills development programmes targets men and women equally, and that peo-ple from all departments benefit,” Wes-sels says, “but there is definitely also a concerted effort to boost historically marginalised groups such as women and the youth.”

In addition to tying into the MDS’ call for pre-emptive problem solving, East Lon-don’s strong development programmes is also aimed at further improving effi-ciencies and entrenching safety stand-ards across all port operations.

“It is critically important, as we drive our port into an exciting new era of growth, that we help our staff to deliver a high-er level of performance, and that we work tirelessly to build their leadership skills, grow their technical expertise and ensure that they are fully conversant with the latest safety and legislative de-mands.”

Vicky Wessels Hr Manager

Multi-sector task teaM Plots lATimer’s lANdiNG revAmp

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Multi-sector task teaM Plots lATimer’s lANdiNG revAmp

Transnet national Ports Authority is taking decisive steps to reboot East London’s premier waterfront development, Latimer’s Landing.

Unlike previous revitalisation efforts, which have met with limited long-term success, port management is opting for a new, holistic approach that draws on the input of a wide range of stakeholders and professionals, to guarantee relevance and sustainability.

Currently, port engineers are pushing ahead with one of the most pressing infrastructure issues affecting Latimer’s: the wholesale replacement of the wooden jetty, which was condemned in 2010.

This includes the removal of all existing jetty furniture and services, removal of the existing timber deck and timber piles to below deck level, removal of the existing rock armour and replacement of timber piles with new reinforced concrete piles.

This would ensure the long-term safety of the new structure, while the surface of the wooden deck would be replaced to closely resemble historic aesthetics.

“Our primary concern is the historic and heritage value of the jetty, and making sure that the project complies fully with the mandate to protect the heritage of this historically important artefact,” senior port engineer Owen Hensburg says.

The jetty was originally constructed in 1850 and, as such, triggers Section 34 (1) of the national Heritage Resources Act,1999, which states that “no person may alter or demolish any structureor part of a structure which is older than 60 years

without a permit issued by the relevantprovincial heritage resources authority.

A Heritage Impact Assessment was conducted during 2015 bythe national Museum’s Archaeological Impacts Unit in order to assess the condition of thejetty and to satisfy all requirements necessary for the development in terms of theaforementioned Act.

“Our commitment to meeting heritage and environmental expectations has necessitated a number of design changes and adjustments to the original concept, but we have complied with heritage council requests and are now awaiting final go-ahead to move to the implementation phase.’

A R127-million project, the replacement of the jetty is expected to be an 18-month project from date of implementation, anticipated for the 2016.17 financial year.

“This is the most pressing project in the larger Latimer redevelopment scheme, which is looking at a holistic precinct plan,” Hensburg says.

“However, the revitalisation of Latimer’s Landing will be a much broader project which will draw heavily on the findings and recommendations of the multi-sector task team currently conducting their research.

“This committee is looking broadly at the unique brand and lifestyle profile of the port, including the yacht club, ski boats, rowing clubs and other leisure users, and will be making detailed recommendations on possible projects to one and for all unlock this unique venue’s tourism potential.”

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As a responsible, community oriented corporate citizen, the Port of East London prioritises its CSI initiatives and continues to

seek ways to enhance and contribute to the social wellbeing of the communities in which we operate.

During the course of the 2015/16 financial year, the port is proud to have further underscored this commitment with a number of high-impact social initiatives which are bringing tangible benefits to our immediate community.

The port has three flagship CSI projects: a long-standing partnership with ITEC to promote science and maths education among high school learners in Buffalo City; a sponsor- and mentorship partnership with Lwazi Gqira, a gifted young development golfer, and ongoing support to facilitate maths, science and IT development and infrastructure upgrade at Rode High School in the former Transkei.

The ITEC project, which has a budget just short of R1-million, sees selected learners from pre-identified schools in the East London and Mdantsane regions receiving Saturday Maths and Science tuition.

The project also funds teacher seminars, supports and enables holiday camps and includes a port visitation programme.

This project has proven a huge success, with the only challenge an escalating demand from additional students who are eager to benefit from the programme, Corporate Affairs manager Terry Taylor says.

“Through the ITEC Maths and Science intervention, the Port of East London not only invests directly in skills development in our region, we are also contributing to the development of the maritime industry as a whole.

“This initiative, which has run for a number of years, continues to grow in scope and reach, and will assist hundreds of East London learners over the next financial year to grow their maths and science skills.”

Development golfer Lwazi Gqira, meanwhile, continues to build a stellar amateur career, which has seen the talented young player excel at the lwazi gqira

committed to GrOwiNG, develOpiNG our community

14

CORPORAtE SOCIAL InVEStMEnt

committed to GrOwiNG, develOpiNG our community

nurturing CritiCal skills: Beneficiaries of the Port Of East London / ITEC Maths and Science programme.

“we are embedded in this region as a key economic and social partner, and we take that responsibility very seriously.”

– Jacqui Brown

Ernie Els and Fancourt Foundation.

Lwazi, who most recently won the King William’s Town Open with rounds of 74 and 74, is growing in leaps and bounds, a feat his coach Michelle de vries attributes in large measure to the support he has been able to get as a result of the Port of East London sponsorship.

In addition to aiding his golfing career, the TnPA sponsorship is also supporting Lwazi to obtain a technical qualification.

In addition to these formal projects, the port is currently preparing to host another eagerly anticipated East London Port Festival later this year.

The Port of East London has also embarked on an exciting new partnership with the provincial Department of Transport, Project Phakisa, which has seen the introduction of formal maritime studies tuition at two East London high schools.

The port is partnering in this initiative by opening our facilities and introducing learners at these schools to practical, hands-on maritime environments and key port operations.

“The Port of East London is passionate about our CSI commitments to our community,” says Port Manager Jacqui Brown.

“We are embedded in this region as a key economic and social partner, and we take that responsibility very seriously.”

At Rode School, the Port’s direct intervention has given learners direct access to a fully functional computer laboratory, while also promoting maths and science education.

This phase of the project has now come to a close, but the Port of East London leaves a firm legacy of empowerment and skills development in this region.

“We are proud of our CSI investments, and we look forward to working closely with our community stakeholders to find new and innovative ways to grow, develop and upskill as many community members as possible,” Brown said.

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COntInUOUS IMPROVEMEnt

The Port of East London is set to further streamline port operations and improve overall employee performance through a new programme of small, incremental changes known as Continuous Improve-ment (CI).

CI is based on the Japanese philosophy of kaizen, which is recognised throughout the world as an important tool in establishing long-term competitiveness.

“Continuous Improvement is essentially a small, step-by-step incremental improve-ment strategy, which seeks to bring about small improvements in processes and prod-ucts,” says Brian Hlapisi, CI Manager for East London and Richard’s Bay, who will be driv-ing the roll-out at both these ports.

“It is an ongoing cycle of positive change and employee involvement, with the objective of increasing quality and reducing waste. CI is a structured, measurement-driven pro-cess that continually reviews and improves performance, processes are constantly eval-uated and improved in the light of their ef-ficiency, effectiveness and flexibility.”

Continuous Improvement is a national TnPA programme, and will be implemented at all eight commercial ports during the course of this year.

The programme is being driven nationally by Muneer Sayed, executive manager in the Office of the Chief Executive, who oversees as team of seven CI managers.

In East London, a dedicated CI forum has been established to facilitate the rollout of Continuous Improvement, to ensure the full participation of all employees.

“The objective is to strive towards CI by the elimination of wasteful activities, to become a world-class performer,” Hlapisi, a former Transnet Freight Rail Engineering Technician and Project manager, explains.

improving efficiencies, one step at a time

This forum, to be spearheaded by the Port Manager, will:

• Identify process-related problems that impact negatively on overall organisational performance, with the ultimate objective to improve;

• identify employee behaviours that prohibit teamwork in order to correct these through a systematic change management engagement process;

• evaluate performance of CI teams working on CI projects in order to provide inputs and direction;

• review and assess adherence of functional employees to set operating standards and processes;

• prioritise proposed CI initiatives based on the challenges and benefits presented by the process owners or functional employees; and

• provide support and empowering CI teams and Change Agents to be effective in their work.

“This provides an organisation with a clearly defined path to follow so that it can systematically make gradual improvements to the environment in which it works.”

As a first step, all administrative offices will be evaluated with a view to becoming more efficient by improving housekeeping, eliminating “wasteful” activities and promoting safety. Thereafter, focus will shift to the operational areas.

The development, roll-out and successes of Continuous Improvement will be reported in all future editions of The Navigator, so keep an eye out for news of your 5S champions and the incremental changes that will be taking place throughout the port to drive this exciting new programme.

Brian HlaPisiCI MAnAGER: Richard’s Bay & East London

the Ci strategy centres on:

Sort & Discard;

Shine & Inspect;

Signpost & Order;

Standardise & Simplify; and

Sustain

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improving efficiencies, one step at a timeBrian HlaPisiCI MAnAGER: Richard’s Bay & East London Port Manager Jacqui Brown was among a select group of

international port executives invited to participate in an intensive, two-month study tour and best-practice fact finding mission of the Japanese port system.

Japan has the third biggest economy in the world, sup-ported in large measure by robust trade through its four main ports, nagoya Port, the Port of Yokohama, the Port of Tokyo and the Port of Kobe.

nagoya, which accounts for about 10% of Japan’s total trade volumes, is the largest exporter of vehicles in Japan, being used exclusively by the Toyota Motor Corporation for its car exports.

All four major ports, as well as many of their smaller coun-terparts, have set increased international competitiveness as their main strategic goal for 2016, and are embracing a wide swath of initiatives, supported by the Japanese gov-ernment, to achieve this goal.

These include reducing handling cost through economies of scale, enabling integrated and flexible terminal opera-tions and management of supply chains, reducing con-tainer discharge lead times,improving efficiencies through the automation of operational procedures and processes, reducing cost and time to access services and engineering integrated IT solutions.

Among the major challenges facing Japanese ports, and port around the world, are a reduction in vessel calls, in-creased logistical costs and increased vessel sizes, Jacqui said in a report back session to the TnPA leadership

“Ports are responding to these challenges with a cohesive action plan, which entails reducing logistics by between 30% and 40%, forging cooperative partnerships to share financial burdens and create increased demand, and de-veloping contingency plans to manage displacement of supply chains.”

Of critical importance – not only to the Japanese ports system but to ports around the world – is to develop a ho-listic strategy that is fully responsive to market conditions.

“Learning about the Japanese ports system, the chal-lenges they face and the solutions they are engineering to increase competitiveness and grow volumes, has been hugely beneficial,” Jacqui said. “not only in terms of per-sonal development, but for the many strategic benefits it holds for the Port of East London as we tackle our own, similar challenges, and come up with our own action plans to achieve strategic targets.”

EL to benefit from studying Japanese port experience

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