development corridor market study - cordevgroup.com.au · deep-water port 230kms north of maputo,...
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Melbourne (Head Office) | Level 2, 405 Little Bourke Street, Melbourne VIC 3000 | Phone: +61 3 9602 1600 or +61 4 9997 9419Sandton, Johannesburg | Block F Ground Floor, Pinmill Office Park, 164 Katherine Street, Sandton, 3196, South Africa | Phone: +27 11 444 5904Advisory Board | Gideon van der Westhuizen (Chairman) | David Fisher, ACA | Logan Shawwww.cordevgroup.com.au
Client Department of Trade and Industry, South Africa
Value Confidential
Location Southern Africa
Duration 2013 - 2014
Service Commercial Advisory
The Department of Trade and Industry aims to promote and provide industrial development throughout Southern Africa to boost the economic performance of the region and to increase global competitiveness.
With Mozambique’s booming mineral and extractive industry, and an increase in multinational companies showing interest in the country, there is a need to expand Southern Africa’s ability to move their minerals and energy products to large economies around the world to benefit their struggling economies
Gideon van der Westhuizen led a professional team in association with Mott McDonald PDNA, that developed and tested the business case for the development of a new deep-water port 230kms north of Maputo, Mozambique based on coal, mineral sands, containers and liquefied natural gas products. Chongoene was also identified as a potential export/import corridor to feed landlocked neighbouring countries Zimbabwe and Botswana.
The Team’s brief was to interrogate the underlying project rationale in order to give proper focus to the analysis of demand and consequent engineering scaling for the port and inland transport infrastructure.
ChongoeneDevelopment Corridor Market StudyCase Study
Trade and IndustryDepartment:
REPUBLIC OF SOUTH AFRICA
the dti
Melbourne (Head Office) | Level 2, 405 Little Bourke Street, Melbourne VIC 3000 | Phone: +61 3 9602 1600 or +61 4 9997 9419Sandton, Johannesburg | Block F Ground Floor, Pinmill Office Park, 164 Katherine Street, Sandton, 3196, South Africa | Phone: +27 11 444 5904Advisory Board | Gideon van der Westhuizen (Chairman) | David Fisher, ACA | Logan Shawwww.cordevgroup.com.au
Client Debswana (De Beers)
Value Confidential
Location Botswana
Duration 2013
Service Business Change Management Plan
Debswana Diamond Company Ltd, (Debswana), is a mining company located in Botswana, and is the world’s leading producer of diamonds by value.
Debswana is a joint venture between the government of Botswana and the South African diamond company De Beers; each party owns 50 percent of the company. Debswana operates four diamond mines in central Botswana, as well as a coal mine.
In 1991, the company changed names to Debswana Diamond Company Ltd and moved its headquarters to Gaborone
Gideon van der Westhuizen led a professional team that was engaged by Debswana to assist with advising its Executive Management on the transformation on what is a primarily diamond based business.
The Team, utilising its global knowledge of the commodities sectors and the role of transformation both public and private businesses, facilitated a series of planning workshops advising the Botswana Executive Management on the transformation, integration and operational challenges/ opportunities that need to be addressed. Utilising tools such as a SWOT analysis, options assessment, scenario analysis and a risk management review, the Team was able to engage Management and provided specific scenarios for it to consider.
The Team ensured the outcome of its deliberations were comprehensive, supported by appropriate strategies and frameworks designed to identify, analyse, evaluate, treat and monitor risks that could prevent Debswana from achieving its objectives.
DebswanaBusiness Change ManagementCase Study
Melbourne (Head Office) | Level 2, 405 Little Bourke Street, Melbourne VIC 3000 | Phone: +61 3 9602 1600 or +61 4 9997 9419Sandton, Johannesburg | Block F Ground Floor, Pinmill Office Park, 164 Katherine Street, Sandton, 3196, South Africa | Phone: +27 11 444 5904Advisory Board | Gideon van der Westhuizen (Chairman) | David Fisher, ACA | Logan Shawwww.cordevgroup.com.au
Client Equilibrium Group (United Kingdom)
Value Confidential
Location Southern Africa
Duration August 2013
Service Commercial Advisory
Equilibrium group, a private European investor consortium,
required an independent review of transport sector
investment opportunities, including railway rolling stock
leasing in Southern Africa generally, and Zimbabwe in
particular.
Gideon van der Westhuizen led a professional team of
advisors to review rail and road freight traffic flows in and
out of Zimbabwe.
The information was extracted from various sources,
mainly recent transport studies carried out by the
professional team, other studies carried out by other
consultants, port statistics, various institutions such as
TMSA (Trademark Southern Africa), MRGP (Mozambique
Regional Gateway Programme), SADC, PMEASA (Port
Management Association of Eastern And Southern Africa),
DBSA, FESARTA (Federation of Eastern and Southern
African Road Transport Associations), etc.
The Team’s ability to respond effectively to Equilibrium
Group’s request for data drew considerably upon the
breadth of experience of the consultants who were
assigned to the work.
The Team’s experience allowed them to draw upon a
wider range of sources than might be possible simply by
going to formal reporting sources. The data was organised
according to the categories requested by the client and
submitted progressively as it became available and was
then consolidated.
Zimbabwe Transport CorridorData ReportCase Study
excl. Fuel, Richards Bay Bulk, Moatize CoalThe Regional Ports serving Zimbabwe are Beira, Maputo and Durban
Kolwezi
Lobito
Walvis Bay
Durban 45
Maputo 15
Beira 3,9
Nacala 1,2
Dar es Salaam 8,2
Chingola
Malawi
South Africa
Zambia
ZimbabweCorridor
1,5 0,2
6,00,5 0,2
0,2
0,2
2,0
3,0
1,0
0
0,81,2 3,0
0,7
7
0,1
NS
0,3
30
Indicative Main Regional Traffic Flows (mtpa) 2011/12
Melbourne (Head Office) | Level 2, 405 Little Bourke Street, Melbourne VIC 3000 | Phone: +61 3 9602 1600 or +61 4 9997 9419Sandton, Johannesburg | Block F Ground Floor, Pinmill Office Park, 164 Katherine Street, Sandton, 3196, South Africa | Phone: +27 11 444 5904Advisory Board | Gideon van der Westhuizen (Chairman) | David Fisher, ACA | Logan Shawwww.cordevgroup.com.au
Exxaro – Central Queensland CoalHeavy Haul Rail System Review,Port of Gladstone Case Study
Client Exxaro
Value Confidential
Location Queensland
Duration October 2013
Service Commercial Advisory
Exxaro has a diverse and world-class commodity portfolio in coal, mineral sands, base metals and ferro-alloys.
Through eight managed coal mines, Exxaro produces 40Mtpa of power station, steam and coking coal.
As the second-largest South African coal producer with capacity of 47 million tonnes per annum and the third-largest global producer of mineral sands, Exxaro provides a unique listed investment opportunity into these commodities.
Exxaro’s Australian division is situated in Queensland, which has recently received a new mining licence in a joint venture with Anglo American for high quality coking coal in the Moranbah South region (150km South-West of Mackay), Central Queensland. Currently conceptual and exploration studies are being completed.
Exxaro has directly engaged Gideon van der Westhuizen to undertake and write a critical review report with regards to the possibility of Exxaro being able to move coal stocks along the various rail .logistic corridors, and its associated commercial impact.
The aim of this review was to observe if coal could be railed commercially via the Central Queensland Coal System.
POWERING POSSIBILITY
Melbourne (Head Office) | Level 2, 405 Little Bourke Street, Melbourne VIC 3000 | Phone: +61 3 9602 1600 or +61 4 9997 9419Sandton, Johannesburg | Block F Ground Floor, Pinmill Office Park, 164 Katherine Street, Sandton, 3196, South Africa | Phone: +27 11 444 5904Advisory Board | Gideon van der Westhuizen (Chairman) | David Fisher, ACA | Logan Shawwww.cordevgroup.com.au
Exxaro – Central Queensland PortCapacity Study – Maximising ExportsCase Study
Client Exxaro
Value Confidential
Location Queensland
Duration April 2014
Service Commercial Advisory
Exxaro has a diverse and world-class commodity portfolio in coal, mineral sands, base metals and ferro-alloys.
Through eight managed coal mines, Exxaro produces 40Mtpa of power station, steam and coking coal.
As the second-largest South African coal producer with global capacity of 47 million tonnes per annum and the third-largest global producer of mineral sands, Exxaro provides a unique listed investment opportunity into these commodities.
Exxaro’s Australian division is situated in Queensland, which has recently received a new mining licence for high quality coking coal in the Moranbah South region (150km South-West of Mackay), Central Queensland. Currently conceptual and exploration studies are being completed.
Gideon van der Westhuizen was engaged to undertake a critical analysis of the possibility of moving coal along the three Central Queensland coal rail systems to various
coal export port terminals servicing this region. This study reviewed three export coal port corridor routes, which could maximise Exxaro’s export opportunities whilst minimising port capacity management charges and rail haulage costs.
Close attention was paid to both short and long-term available port capacity at the ports of Abbot Point, Mackay (Port of Hay Point) and Gladstone.
Melbourne (Head Office) | Level 2, 405 Little Bourke Street, Melbourne VIC 3000 | Phone: +61 3 9602 1600 or +61 4 9997 9419Sandton, Johannesburg | Block F Ground Floor, Pinmill Office Park, 164 Katherine Street, Sandton, 3196, South Africa | Phone: +27 11 444 5904Advisory Board | Gideon van der Westhuizen (Chairman) | David Fisher, ACA | Logan Shawwww.cordevgroup.com.au
HANA Botswana TFRCoal Capacity Seeking Project Case Study
Client HANA Consortium
Value Confidential
Location Southern Africa
Duration 2012 – 2013
Service Transport Infrastructure Advisory Services
The HANA Coal Mining Consortium is seeking coal haulage capacity on South Africa’s Freight Rail (TFR) network to Richards Bay Coal Terminal (RBCT).
This resulted following announcements by the South African Government that it has committed R300 billion for much needed infrastructure investment which included rail infrastructure upgrades as well as new rail solutions development.
As part of this infrastructure investment programme the SA government stated that it was to upgrade the capacity of the existing Waterberg freight rail line capacity.
Cordev Group’s Gideon van der Westhuizen was engaged to commercially position the HANA Consortium in such a manner to commence negotiations with the South African freight rail operator, TFR, to seek capacity on the mooted Waterberg extension heavy haul freight rail line. The
importance of this development for Botswana lies in the fact that it would see herald the creation of much needed capacity to haul coal from Botswana and provide access to an international heavy haul commodity freight port, Richards Bay Coal Terminal.
Gideon positioned the Botswana companies in such a manner that TFR requested the Consortium to submit its anticipated coal supply numbers that are required by the Operator to underpin the future capital expansion and freight rail development network linking the Waterberg with Botswana.
Politically, this project offers significant upside in Southern Africa’s plight to become both a net exporter of coal to not only global markets, but also continue to satisfy the region’s own supply requirements by assisting in underwriting and securing coal supply.
Botswana coal reserves are abundant but to fully optimise its position, it requires access to world class freight rail infrastructure solutions in the form of guaranteed rail access that includes a clear pathway to the region’s largest bulk commodity export ports and markets.
Melbourne (Head Office) | Level 2, 405 Little Bourke Street, Melbourne VIC 3000 | Phone: +61 3 9602 1600 or +61 4 9997 9419Sandton, Johannesburg | Block F Ground Floor, Pinmill Office Park, 164 Katherine Street, Sandton, 3196, South Africa | Phone: +27 11 444 5904Advisory Board | Gideon van der Westhuizen (Chairman) | David Fisher, ACA | Logan Shawwww.cordevgroup.com.au
HANAC ConsortiumCase Study
Client HANA Consortium
Value Confidential
Location Southern Africa
Duration 2012 – 2013
Service Transport Infrastructure Advisory Services
The core focus on the project was to provide independent expert advice on the status of freight rail operations within Southern Africa as well as an overview of the costs and constraints associated with commodity mineral (coal) exports via heavy haul freight rail from Southern Africa.
Cordev Group’s Gideon van der Westhuizen was engaged by the HANAC Consortium, made up of four ASX Senior listed mining companies operating in Botswana.The key focus of the overview was that immediately available capacity to carry bulk minerals from newly opening mines in Southern Africa for emerging mining explorers and developers is very limited, with most existing bulk rail capacity already spoken for by incumbents and planned new rail capacity most likely to serve members of mine development consortia. The main exceptions to this conclusion are the longer term, less certain opportunities.
Notwithstanding this general finding, the Team’s research established some valuable costing details and status reports for a wide range of existing and future bulk mineral rail transport opportunities. As such it enabled the HANAC Consortium with a set of clear transport parameters against which to judge the realistic export potential of mineral investment opportunities which, from geological and other considerations, that appear to be viable.
Key routes / projects reviewed included:
Mozambique, eastbound, coal export route options
Botswana westbound coal export options
Coal export options from Zimbabwe
Outline of Transnet’s (South African Freight Rail Operator) bulk mineral export infrastructure upgrade plans
Review of success and failure factors in various Southern / East African rail concessions
Thoughts on the scope for independently developed mine rail operations in the region
Melbourne (Head Office) | Level 2, 405 Little Bourke Street, Melbourne VIC 3000 | Phone: +61 3 9602 1600 or +61 4 9997 9419Sandton, Johannesburg | Block F Ground Floor, Pinmill Office Park, 164 Katherine Street, Sandton, 3196, South Africa | Phone: +27 11 444 5904Advisory Board | Gideon van der Westhuizen (Chairman) | David Fisher, ACA | Logan Shawwww.cordevgroup.com.au
Veolia Transdev Franchise AdvisorCase Study
Client Veolia Transdev
Value Private
Location Auckland, New Zealand
Duration 2006 - 2009
Service Franchise Advisor
Veolia Transport Australasia (VTA) operates train, bus, ferries and tram services throughout Australasia and is part of the global $40 billion Veolia Environment business.
VTA has a strong risk management background and ensures that their diverse businesses apply best practices across the board. Due to the public nature of its operations, VTA frequently needs to ensure that its management systems, processes and procedures are world class and persist to reflect the demands of clients and customers equally.
Gideon van der Westhuizen was engaged by Veolia Transport Auckland to support them with a number of assignments to institute commercial best practices as it relates to its Franchise Arrangement with ARTA (Franchisor) and KiwiRail (maintainer). He developed an enterprise wide risk management structure and protocols
that were undertaken across the New Zealand business to guarantee corporate as well as regulatory fulfilment. This led to the refocusing of the internal management training programme to enable staff to entrench a risk management culture across the company. Gideon autonomously assessed the risks interest in its Auckland rolling stock management system thereby helping the Veolia Board understand its technical responsibilities and the human factors factor driving such. The outputs of the assignment were the advancement of an opportunity matrix highlighting technical improvement areas as well as altering people behaviours necessary to manage this program.
The client (Veolia Transport Australia Board and Auckland Regional Transport Authority (ARTA) was apprehensive that KiwiRail was not performing optimally and Gideon was requested to autonomously assess the performance adjacent to the Franchise Services Agreement. Following the completion of the Review, Gideon presented his outcomes to the Veolia Board as well as part of ARTA.
UNCOMPROMISINGSAFETY
QUALITY ASSET MANAGEMENT
HIGH PERFORMANCE CULTURE
BEST IN CLASS OPERATIONAL PERFORMANCE
OUR PROMISE
SUPERIOR EXPERIENCE
VALUEFOR MONEY
Melbourne (Head Office) | Level 2, 405 Little Bourke Street, Melbourne VIC 3000 | Phone: +61 3 9602 1600 or +61 4 9997 9419Sandton, Johannesburg | Block F Ground Floor, Pinmill Office Park, 164 Katherine Street, Sandton, 3196, South Africa | Phone: +27 11 444 5904Advisory Board | Gideon van der Westhuizen (Chairman) | David Fisher, ACA | Logan Shawwww.cordevgroup.com.au
Veolia Transdev NSWBusiness Operations Risk ReviewCase Study
Client Veolia Transdev
Value Private
Location Sydney, NSW
Duration 4 months
Service Commercial Advisory
Veolia Transdev Australasia (VTA) operates train, bus, ferries and tram services throughout Australasia, and is part of the global $40 billion Veolia Environment business.
Veolia Transdev Australasia is committed to managing risk by applying a risk management framework that integrates the risk management process into the organisation’ s overall governance, strategy, planning, management, reporting processes, policies, values and culture.
Veolia Transdev Australasia’s risk management objective is to minimise uncertainty regarding its ability to meet strategic targets.
To achieve this, Gideon van der Westhuizen was engaged to implement a process whereby risks needed to be managed effectively, efficiently and coherently across the organisation and consistent with the risk management principles stated earlier.
The brief was to formally assist Veolia understand its technical responsibilities and the associated human factors component. The outputs of the assignment were the development of an opportunity matrix highlighting technical improvement areas as well as changing people behaviors required to manage this program.
The output of the review was the development of a risk management framework that integrates the process for managing risk into an organisation’s overall governance, strategy and planning, management, reporting processes, policies, values and culture.
The adoption of consistent processes within a comprehensive framework helped ensure effective, efficient and coherent management of risk across the organisation and maximised VTA’s ability to meet its objectives.
This Risk Management Framework (RMF) was consistent with ISO, 31000: 2009.
UNCOMPROMISINGSAFETY
QUALITY ASSET MANAGEMENT
HIGH PERFORMANCE CULTURE
BEST IN CLASS OPERATIONAL PERFORMANCE
OUR PROMISE
SUPERIOR EXPERIENCE
VALUEFOR MONEY
Melbourne (Head Office) | Level 2, 405 Little Bourke Street, Melbourne VIC 3000 | Phone: +61 3 9602 1600 or +61 4 9997 9419Sandton, Johannesburg | Block F Ground Floor, Pinmill Office Park, 164 Katherine Street, Sandton, 3196, South Africa | Phone: +27 11 444 5904Advisory Board | Gideon van der Westhuizen (Chairman) | David Fisher, ACA | Logan Shawwww.cordevgroup.com.au
VMIA – Risk Management Services Case Study
Client VMIA
Value Confidential
Location Melbourne
Duration 2011 – 2013
Service Risk Management Training
VMIA helps the Victorian Government and its clients to effectively manage risks critical to ensure that the State’s assets and services are available and protected for Victorians to enjoy, both now and in the future.
VMIA is guided by the Victorian Government’s Risk Management Framework which sets out standards of risk management required across the public sector and the VMIA Act 1996.
Gideon van der Westhuizen has been engaged as a risk management facilitator/ trainer on the very important topic of risk management.
Gideon, through its engagement with VMIA members and client organisations, ensured that risk management was seen as a comprehensive process, supported by appropriate strategies and frameworks designed to identify, analyse, evaluate, treat and monitor risks that could prevent an organisation from achieving its objectives. It covered strategic as well as operational, financial and compliance risks. The Victorian public and private sectors use the term ‘organisation’ or ‘enterprise wide risk management’ to describe this approach.
Gideon’s risk management training methodology approached the topic of managing of risk as an integral part of good business practice and quality management. Gideon ensured that learning how to manage risk effectively enabled managers to improve outcomes by identifying and analysing the wider range of issues and providing a systematic way to make informed decisions.
A structured risk management approach also enhanced and encouraged the identification of greater opportunities for continuous improvement through innovation.
Reduce Total Cost of Risk to GOVERNMENT
Reduce Total Cost of Risk to CLIENTS
Adviser to Government
Risk Management
Adviser
State Insurer
ALERT
ENAB
LE
ENABLE
ENABLE
PREVENT PROTECT
Melbourne (Head Office) | Level 2, 405 Little Bourke Street, Melbourne VIC 3000 | Phone: +61 3 9602 1600 or +61 4 9997 9419Sandton, Johannesburg | Block F Ground Floor, Pinmill Office Park, 164 Katherine Street, Sandton, 3196, South Africa | Phone: +27 11 444 5904Advisory Board | Gideon van der Westhuizen (Chairman) | David Fisher, ACA | Logan Shawwww.cordevgroup.com.au
VMIA – Contract Management &Procurement Risk in the Public Sector Case Study
Client VMIA
Value Confidential
Location Melbourne
Duration 2011 – 2013
Service Contract & Procurement Management Risk
VMIA helps the Victorian Government, Australia, and its clients to effectively manage risks critical to ensure that the State’s assets and services are available and protected for Victorians to enjoy, both now and in the future.
VMIA is guided by the Victorian Government’s Risk Management Framework which sets out standards of risk management required across the public sector and the VMIA Act 1996.
International studies indicate that Public Sector Procurement accounts for approximately 15 to 20% of GDP in many countries. In the State of Victoria, Australia during 2009-10, the Victorian Government Purchasing Board reported 589 process approvals valued at $1,111.8 million.
Gideon van der Westhuizen was been engaged as a contract and procurement management advisor and lead strategic roundtable discussions for the Victoria State Government and its key stakeholders. The approach adopted was while the basic tenet of public and private sector procurement does not vary wildly, public sector procurement executives operate in a different professional world to that of the private sector.
Not only did they work under the extra glare of publically accountable financial and fiduciary responsibilities, they faced other unique challenges such as changing policy and political sensitivities, extra layers of regulation, compliance and governance and the transparency/accountability demands of the media, industry, business and the general public.
It was established that procurement practices, whether government or private sector, should be as straightforward, simple and cost-free as possible. This was echoed by the previous Australian Government Federal Minister of Finance and Deregulation when she commented “Government procurement is [especially] expected to achieve value for money through competitive, open, transparent, efficient and publicly-accountable processes”.
Reduce Total Cost of Risk to GOVERNMENT
Reduce Total Cost of Risk to CLIENTS
Adviser to Government
Risk Management
Adviser
State Insurer
ALERT
ENAB
LE
ENABLE
ENABLE
PREVENT PROTECT
Melbourne (Head Office) | Level 2, 405 Little Bourke Street, Melbourne VIC 3000 | Phone: +61 3 9602 1600 or +61 4 9997 9419Sandton, Johannesburg | Block F Ground Floor, Pinmill Office Park, 164 Katherine Street, Sandton, 3196, South Africa | Phone: +27 11 444 5904Advisory Board | Gideon van der Westhuizen (Chairman) | David Fisher, ACA | Logan Shawwww.cordevgroup.com.au
Waterview Connection Road PPP Project, Auckland New ZealandCase Study
Client Department of Treasury & Finance
Value Confidential
Location Auckland, New Zealand
Duration 2009
Service Advisory
Prioritised as a Road of National Significance (RoNS), the Waterview Connection project underlines the NZ Government’s commitment to delivering economic growth through sustainable infrastructure development.
The Waterview Connection delivered 5km of 6-lane motorway through and beneath Auckland’s western suburbs, linking the city’s Western Ring Route by 2017. This provided a viable alternative for commuters, freight and through-traffic to State Highway 1, which runs through the city and over the Auckland Harbour Bridge and is regularly over capacity at peak times. It also directly connects the International Airport and CBD.
The $1.4bn Waterview Connection was the largest road PPP project ever undertaken in New Zealand.
Completing a motorway ring route around the city, it unlocks Auckland’s potential to become a truly world class city, combating regional congestion and creating a direct, time-saving link between the International Airport and CBD.
Gideon van der Westhuizen led an impressive Project Review Team (Gateway Review) in 2009 to assess the commercial viability of this project. Appointed by the New Zealand Government’s Department of Treasury & Finance. The Review Team included a former New Zealand Transport Minister, an Investment Banker and Political Advisor to the Prime Minister’s Office.