NPA Strategic Direction

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NPA Strategic Direction BEE OpportunitiesPresen
ted by Siyabonga GamaChief Executive Officer NPA
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A short quiz

• The following short quiz consists of 4 questions
  and tells whether you are qualified to be a
  professional
• The questions are not that difficult, so dont
  cheat by looking ahead!

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Question 1

• How do you put a giraffe into a refrigerator?

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Answer

• The correct answer is
• Open the refrigerator, put in the giraffe and
  close the door.
• This question tests whether you tend to do simple
  things in an overly complicated way.

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Question 2

• How do you put an elephant into a refrigerator?

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Answer

• Wrong Answer Open the refrigerator, put in the
  elephant and close the refrigerator. Correct
  Answer Open the refrigerator, take out the
  giraffe, put in the elephant and close the door.
• This tests your ability to think through the
  repercussions of your actions.

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Question 3

• The Lion King is hosting an animal conference.
  All the animals attend except one. Which animal
  does not attend?

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Answer

• Correct Answer
• The Elephant.
• The Elephant is in the refrigerator, remember.
  This tests your memory.

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• OK, even if you did not answer the first three
  questions correctly, you still have one more
  chance to show your abilities.

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Question 4

• There is a river you must cross. But it is
  inhabited by crocodiles.

How do you manage it?
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Answer

• Correct Answer You swim across. Why?
• All the Crocodiles are attending the Animal
  Conference.
• This tests whether you learn quickly from your
  mistakes.

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• According to Andersen Consulting Worldwide,
  around 90 of the professionals they tested got
  all questions wrong. But many preschoolers got
  several correct answers. Anderson Consulting
  says this conclusively disproves the theory that
  most professionals have the brains of a four year
  old.

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• Send this out to frustrate all of your friends

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NPA Strategic Direction
TRANSNETs Vision Africa's undisputed world
champion in transport and logistics solution NPA
Strategic Intent To be a transformed,
self-sufficient port authority that facilitates
and enables competitiveness in a world-class port
system
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NPA Strategy derives from

1. The obsession to make the South African Ports
   system world class
2. Synthesizing our processes, systems and people
   values to satisfy our stakeholders
3. Taking actions that differentiate the NPA from
   other ports landlords on the continent through
   continuous innovation, value-added services and
   brutal execution of our plans

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NPA Strategic Objectives 2003/04

• Financial
• Ensuring sustainable value creation and
  profitability within NPA
• Customer Stakeholder
• Creating an enabling business environment to
  enhance trade
• Internal Business Perspective
• Entrenching a performance-centered culture to
  ensure efficiency, effectiveness and continuous
  improvement
• Innovation and Learning
• Growing and developing NPA staff in line with
  equity and gender objectives
• Continuously conduct research and competitive
  intelligence analysis aimed at enhancing business
  growth, innovation and creativity

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4R Model
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NPA Strategic Direction

• NPAs strategic direction underpinned by the
  National Commercial Ports Policy and National
  Ports Authority Bill
• The National Ports Authority Bill specifically
  requires NPA
• To promote the achievement of equality by
  measures designed to advance persons or
  categories of persons historically disadvantaged
  by unfair discrimination in the operation of
  facilities in the ports environment
• Promote greater representivity, in particular to
  increase the participation in terminal port
  operations of historically disadvantaged persons
• This area will remain a strategic imperative for
  NPA for some time

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BEE Strategy

• To accelerate procurement from black-owned and
  empowered enterprises to create new enterprises
  with the objective of growing existing emerging
  entrepreneurs to produce value-added goods and
  services for the industry and increase employment

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Key BEE Opportunities

• Construction projects
• R1,2bn BEE spend expected over next 3 years
  (R/Bay, Durban, Ngqura Cape Town)
• Maintenance projects
• R400m BEE spend on electrical, dredging, marine
  craft and equipment maintenance e.g. floating
  cranes
• Provision of security, cleaning and catering
  services,70 set aside for BEE suppliers

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Key BEE Opportunities (cont..)

• Supply of uniform clothing R21m (100) set aside
  for BEE suppliers, disabled and women groups
  spread in all ports
• Construction of new admin buildings in Saldanha
  Mossel Bay Set aside 100 for black contractors
  R21m
• Oceans of opportunity for BEE entrepreneurs to
  participate in terminal operations over the next
  5 years as we concession various SAPO operated
  terminals

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Past Achievement
2002/3 BEE EXPENDITURE
Total Discretionary Expenditure BEE spend BEE spend
R1,209,660,220,91 R479,730,619,28 40
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BEE Targets
CURRENT BEE TARGETS 2003/4
TOTAL BEE YTD
CAPEX (Rmil) BEE CAPEX Target BEE OPEX (Rmil) BEE OPEX TARGET BEE
R1,907,00 R610,24 35 R1,342,00 R550,22 45
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NPA Undertaking to assist BEE growth in Maritime
Sector

• Facilitate access by Black suppliers to NPA
  procurement activity
• Ensure that an increasing portion of contracts
  are awarded to Black Entrepreneurs and Suppliers
  with a clear and evident commitment to Black
  Empowerment
• Facilitate entry of Black entrepreneurs into port
  related industries e.g. warehousing, logistics
  park operations, stevedoring etc.
• Create awareness, understanding and support for
  Black Economic Empowerment among NPA key
  stakeholders

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Challenges facing NPA

• Construction projects remain too big and
  specialized
• Implementation of our robust supplier development
  policy to achieve 50 BEE spend by 2004, and 60
  thereafter
• Fronting by so called BEE suppliers
• Established white firms still prefer to deal with
  BEE on the basis and only for public sector work!
• Entrepreneurs remain averse to access the really
  big opportunities, e.g. owning running shipping
  lines, accessing land for value-added services

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Way Forward

• Communication of major projects and initiatives
  prior to commencement (Ngqura Durban 2005 case
  study)
• Entrenching a maritime culture amongst
  entrepreneurs to take advantage of coastal mines
  (Ports!)
• A sharper focus on supplier development to create
  meaningful and enduring partnerships
• Removing a culture of entitlement amongst some
  suppliers and ensuring they adopt a continuous
  improvement culture to drive down costs

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