Resilient Sustainable Green Supply chains Southern African Region FINAL REPORT Contract nr 7181887 DECEMBER 2017 Content Page 1. Introduction 3 2. Project description and objectives 3 3. Approach to the project 4 4. Results of the project 6 4.1 Opportunities to improve sustainability in logistics 7 4.2 Proposed projects 9 4.3 Pilot program for sustainable development in the South African region 12 5. Actions set in motion, parties involved 14 5.1 Actions in motion and parties involved 14 5.2 Securing continuity 17 Appendix 1. Southern Africa’s corridor communities: an evolution in essence 18 Appendix 2. Overview of logistics peer-network: companies and people involved 33 Appendix 3. Executive Summary of the notes of the different encounters 39 Appendix 4. Community development 63 Appendix 5. Capacity terminals SA(DC) 64 Final Report, page 2 1. Introduction Please find enclosed document is the Final Report as mentioned in the Terms of Reference of contract # 7181887. As requested by the World Bank1 the completion of the project has been accelerated, enabling World Bank to review the findings already end of 2017, early 2018. In accordance with the Inception Report (February 2017), this Final Report describes the results of the assignment and the conditions needed to secure continuity of the cluster of programs started. You will find an overview of initiatives that have been started under the program clusters, companies and people involved and the conditions and resources required for continuity. The findings will be presented to World Bank staff in an informal brainstorm | workshop in January 2018 in Washington D.C. to present / discuss / explore 1) Strategy / learning’s / results as and where relevant for other Task team Leaders; 2) Requirements to secure continuity of this transition, co-funded with IGO support; 3) Wider dissemination of the applied corridor (flow) community development strategy. Some of the key elements of the strategy and learning behind the results have been addressed separately in Appendix 1 and 4 respectively. 2. Project description and objectives In the area of green supply chains the Multi-Donor Trust Fund for Sustainable Logistics (MDTF-SL) finances activities that contribute to the development of transport corridors and logistics services in low and middle-income countries, while minimizing the carbon footprint and greenhouse gases associated with the delivery of goods. This boils down to enhancing economical social and ecological returns of current and future (IGO co- financed or co-sponsored) infrastructural investments. This widens the core focus widened from transport & logistics to economic corridor community development. Early discussions with Transnet Group, the Walvis Bay Corridor Group (WBCG), the Maputo Corridor Logistics Initiative (MCLI) and the African Corridor Management Alliance (ACMA) steered the project focus towards key road/rail corridors in the SADC region: Durban – Johannesburg/Pretoria- Zimbabwe/Botswana, the Maputo corridor and the Walvis Bay corridor network. The project and its continuation embrace a diversity of perspectives with substantial transition potential: joint values, shared perspectives – shared interests, joint commitment. The key pervasive question driving the transition is how to bring a variety of players from their own well-understood interests together into a common initiative. “Southern Africa’s corridor communities: an evolution in essence” (appendix 1) lays the strategic framework. 1 Telephone call between Mister Baher El Hifnawi and Mister Robert Boekestijn on July 11th, 2017. 2 See appendix 3 for summaries of the interviews. 3 See for an example of an open living systems approach in practice the South African based company ZZ2: Final Report, page 3 Terms of Reference specify: ‘to enable South-Africa, Botswana and Namibia to address climate– related and local environmental impacts caused by the transport of goods. To enhance competitive positioning in the global value chains. To further sustainability in logistics by promoting and facilitating actions and by offering a public/private platform for sharing knowledge. To identify companies ready and prepared to commit to more sustainable logistics and mobility practices.’ In its further detailing the Terms of Reference frame several elements of execution: • Community Building: identify leading local and international companies in the SA region that are willing to take the lead in supporting sustainable supply chain programs. • Development of Sustainable Supply Chain Strategies: support companies in the development of Sustainable Supply Chain Strategies • Project Development: get players to increase the return on investments in logistics infrastructure through collaboration of large and medium sized companies and involve societal stakeholders. • Create Shared Governance: develop shared governance within the community (demand driven) to share knowledge and collaborate on finding solutions for sustainable logistics. 3. Approach to the project For the execution of this assignment we focused on building communities of companies (and other stakeholders) around economic/logistics corridors. In order to: • Improve utilization of infrastructure, • Reduce environmental impact and • Boost job opportunities, Summarized as “Sustainable Supply Chain Development”, a shared concept connecting the assignment’s strategy and objectives to operational business practice of participating companies. As described in the Inception Report Confluence primarily worked from a “shippers (= cargo owners) perspective” when building these communities of companies that can feed corridors in a fundamentally different way. Practically this means shippers are considered the primary customers of this project. Their needs are leading when deciding what topics to work with and how to approach these. Details were specified in the Inception Report of February 2017 and the draft Final Report of September 2017. To set wheels in motion, Confluence applied a 3-step approach: Final Report, page 4 Step 1 Presence: create open space If one’s main objective is to create a self-supporting community of companies in the South African region that would work together to further sustainable logistics in the region, having local presence and creating a common open space are paramount. To do so requires regular physical presence in the region to identify first movers and build relationships where ‘first movers’ are companies willing to put time and effort in the project. Building relationships with first movers provides information on issues that energize and have relevant business value. This enabled us to identify common interest of the companies involved and provide the basis on which to design the pilot program as described in the Inception report. Step 2 Attunement: identify direction to increase the momentum Based on the information gathered in Step 1 the basic outline and working principles of the program were drafted. Three critical requirements were identified: • Challenging, yet realistic goals for the community. • Projects to energize and commit the participants. • Result in concrete business value when achieved. This all requires well-understood individual and shared incentives that increase the appeal of the program and further commit participating companies. A clear program approach provided direction and purpose to (potential) participants. In a range of meetings a joint proposition of three key challenges was developed that could easily be communicated. This increased the influx of participants and eased ‘next steps’. Step 3 Resonance: create a generative governance framework The next step was to develop shared governance within the community (demand driven) to safeguard trust amongst the participants and enable the willingness to share knowledge and collaborate on finding solutions for sustainable logistics. Throughout the assignment a step was reiterated where useful to nurture and foster mutuality. Final Report, page 5 4. Contextuality and results of the project ‘Being a co-financer of developmental infrastructure in emergent economies World Bank looks for ways to improve economic, social and ecological returns on transport infrastructure.’ This message was easily well understood by all participants. It works, and lends outsourced credibility. ‘The project, started in February/March 2017, leverages the findings of a by now 12 years transition initiative on sustainable transport and mobility in Europe and the Netherlands.’ In any introduction this clearly set the outlines, and made clear what the project is about. An early discussion with the board of Transnet Group, Transnet Freight Rail and Transnet Port Terminals steered the project focus towards the key road/rail SADC corridors. This attracted many others as it generated a clear opening to change. This was well recognized and supported by all. Above all a strong shared sense developed that the approach merits continuation and demands continuity. A clear need for a trusted third party emerged. Not one single party surfaced from within SA or SADC that gets this mandate. This issue is key in any governance framework for the future. Then the tangibles. Confluence met with more than 60 companies, institutions and organizations and over 130 people (Appendix 2). Final Report, page 6 The following describes the journey as Confluence experienced it, from a diverging process early 2017 into a converging concrete number of agreements reached late 2017. It shares the most valuable observations and worthwhile results of the assignment and structured along the 3-steps approach described in chapter 3, with the gradually emerging strategy summarized in Appendix 1. The paragraphs below contain an overview of the subjects that were recognized as promising to work with by the companies we engaged with (4.1), the items that evolved (4.2), and a proposed program ensemble that is to move forward (4.3). Convergence was based on merits. Throughout the journey three criteria gained relevance: • Companies perceive a topic as valuable for their business development. They recognize both impediments to change and a very substantial benefit if one changes. • The topics energize players. This means key people get enthused about the topic and are willing to put their time and seniority into their part of the project(s). • The ensemble of topics has the clearly felt potential to amplify each other and together to contribute to developing more sustainable supply chains in the South African region. 4.1 Opportunities and subjects to improve sustainability in logistics at first sight Subjects promising to work with, according to shippers and logistics service providers2: • Develop supply chain maturity South Africa comprises of a combination of mature and immature industry in terms of supply chain management. This creates a big gap between companies (& people) who are open to and understand the concept of collaboration and those who are not (e.g. 5% of Imperial clients is ready for collaborative concepts, like flow bundling, others are not). Development of supply chain maturity and introducing innovative ways to deal with changing the perspectives of people is much needed. An example may be to create ‘Show Cases’ of successful collaborations and the benefits it creates. This may help to educate companies and help to grow maturity. • Network of peers The executives and supply chain directors expressed that there is a need to meet with peers, share knowledge and increase cooperation with leading industry partners with a relevant agenda, driven by achieving pragmatic improvements and results. • Reducing empty kilometers & mapping of flows (international and regional) o Many companies would like to consolidate flows, but this is still hard to achieve. Shippers/Cargo-owners are reluctant to share data and don’t want to lose control over their logistics even if collaboration promises to be (very) cost effective. This ties in with ‘maturity’. 2 See appendix 3 for summaries of the interviews. Final Report, page 7 o There is some experience and a willingness to set up collaboration on the basis of a “shared benefits” basis. o Aspects to be aware of as always relevant’ are trust, fitting products/specifications and conditions, co-ordination and anti-competition law. o Warehouse infrastructure is poor. Sharing would be an opportunity. Then it would make sense to also share trucks, which would be a SA novelty. Players stress that some of these collaboration concepts are hard to understand for South African businesses. o The main concern of companies is transport reduction (by means of collaboration), not collaboration as such. • Namibia & Botswana is uncharted territory (in terms of collaboration potential) Cross border logistics is perceived as complex in the South African region (compliance, corruption, waiting/dwelling times, connecting infrastructure, etc.) whilst there is a noticeable difference in maturity between South Africa, Namibia and Botswana. Yet, companies are interested to explore the opportunities of collaboration between companies in the three countries. • Cost reduction & efficiency The Road Transport Management System (RTMS) & Performance Based Standards (PBS) for road usage and logistic services / rolling stock are very promising. They were developed with earlier IGO money, also from World Bank. Imperial, Barlo World and SAB employ PBS. They share advantages with customers. RTMS enables investments in clean trucks, in closer cooperation with banks, in lower assurance rates. The current RTMS scheme is ready for a next step in development. RTMS is looking to adapt the program for sustainability reasons towards personal mobility like taxi’s and buses and public transport as well. This next stage would imply a big step in the improvement of the maturity in road usage within the South African region. With first priorities first: quality of vehicles, quality of tires and brakes, handling stability, quality of maintenance, lighter materials, back hauling, quality of drivers, integrity of management systems. • Transfer from road to rail & how to exploit rail in South Africa and the role of Transnet (= the rail and port exploiting company) In South Africa 95% of transport is dealt with via road. There are rail opportunities available but these are hardly used at the moment (this was different in the past). Setting up a ‘Road to Rail’ challenge generates energy among the companies spoken to. The quick win possibility seems to be Durban to Johannesburg. Another potentially top priority issue is the pricing & congestion (in peak season) in the port of Durban. Players all recognize a need to start rail services with a proper business case and an operational execution plan. • Micro distribution into townships and rural areas For many companies, micro distribution into townships and rural area’s is a major challenge. Interviews identified this as a key area where emergent logistics and resilient community development could meet in SADC (Inception report: ‘Resilient Community Development’). Final Report, page 8 • Standardization Within the retail flows, there is potential to collaboration with respect to standardization. This involves product information on etiquettes, use of packaging and coding, modes of distribution (of pallets, bottles, boxes, containers etc.). • Engagement of students and post graduates Executives expressed their interest in getting young graduates and students involved in logistics. Involving students in any shared project may be a practical way to start this. • Corporate Social Responsibility CO2 is an issue for major companies but there are currently no governmental incentives to improve the CO2 footprint. The drive for CSR comes from the companies themselves, more often than not from a more transnational/global perspective, with IGOs and NGOs facilitating. • Security From an LSP perspective transport security I, more than a challenge, a major cost component. • Reverse logistics Confluence picked up a variety of viable business development opportunities with respect to reverse logistics. Several corporates have expressed their interest in a better system for pallet pooling, reverse logistics of paper and plastics and the way bottles are collected, cleaned/recycled and returned to the producers of beers, beverages and soft drinks. 4.2 Proposed Projects In June 2017, Confluence organized a first ‘community encounter’ to discuss the opportunities that had emerged during the first inventory and to process these into building blocks for potential projects to work on. The meeting identified three core building blocks: Issues Perspectives Strategies Empty kilometers Road to rail Operate jointly, maintain “Do more with the same” individual identities Asset management Spaza shops in townships, rural Operate form diversity, share “Do the same with less” distribution and RTMS inclusiveness Cost reduction Reverse logistics, waste Operate on own (business) “Do more for less” management logic, embrace a common governance framework The companies involved handed a mandate to Confluence to develop these building blocks into a number of tangible projects that they could possibly work on and present these back in the fall of 2017 to discuss and further enrich. And to decide what is needed to actually kick-start the ensemble. Final Report, page 9 In the follow-through on this community mandate 6 projects were defined: 1. Green Flow Corridor Development in the SADC region Aimed at optimizing logistics corridors in the SADC region: efficient terminals, connecting rail services, upgraded roads, vehicles and drivers. With continued discussions and brainstorms some considerations emerged as key leads: o Resilience and strategic partnership between corridors and corridor flow parties is an essential ingredient of any transformation towards an effective transport system in the SADC region, definitely in view of expected growth rates in flows. o In October 2017, Durban was hit by a storm of a force unknown before. It damaged the port’s capacity. It is very difficult to prevent such interruptions. o Regional resilience means that the system that feeds Southern Africa is robust for incidents like these. This would require that all along the coast ports cooperate to keep the flow of goods going, preferentially linked with the same rail-plus-road synchro-modal system. This way both inbound and outbound flow can be dealt with adaptively through a cascade of options. And hold-ups at seaside and at landside can be minimized. o This aspect of resilience will by default gain more relevance with time. Once economic development hits the tens of millions of people still only partially connected now, the flow through the system may triple within decades. |This renders the robustness aspect of resilience more relevant than ever before. o The resilience aspect also reflects on the future operations mode of Durban port. At present the container terminal is deeply exposed. High stacks are a liability and truck-handling space hinders systemic re-alignment of processes. This would be very different for a flow-through system with only the bare minimum of stacking and vertical moves. And with only truck handling for last minute interventions. o The shift of road to rail may fundamentally change the way Durban port handles inbound and outbound flows by creating a dry port deeper inland. Operational resilience and throughput capacity can be enhanced substantially by moving more and more containers directly to and from a rail shuttle that moves the containers quickly to a dry port further inland. So, the port becomes a flow-through system with only limited container stacking in exposed areas. o Part of this flow can then be forwarded to truck at the inland dry port or continue by long-haul train to one of the dry ports up north. o On the roadside, the corridors then can and should be streamlined to more resiliently accommodate time-critical shuttle services. This would require raising corridor, vehicles and driver management and operation to certified standard. It also would benefit from a cluster of dry ports up north in the Limpopo area both to accommodate Limpopo’s development potential and to facilitate transits between northern SADC countries and Durban onto rail. Final Report, page 10 o The current underutilization of the rail network plus the significant potential for a competitive rail offer due to the marginal cost level of container transit enable this as a viable option. 2. Road to rail Challenge Closely connected to project 1. It explores how a road to rail challenge could be set up for container- loads, in cooperation with cargo-owners, Transnet Freight Rail, Transnet Port Terminal, LSP’s and retailers. Both within South Africa, as across international corridors. 3. Reverse logistics Within the retail business, there is potential to go into uncharted territory in terms of collaborating between big retail companies to build a resilient and sustainable supply chain. The potential of this idea is that it would help diminish the negative environmental side effects of retail logistics by dealing with the reverse logistics of waste and equipment, usage and pooling of pallets, handling of returned bottles and sharing empty spaces in trucks and on the road. 4. RTMS & PBS The Road Transport Management System & Performance Based Standards (PBS) for road usage and logistic services are very promising to support the upgrade of road, vehicle and driver quality in corridors. This project will develop how RTMS and PBS can grow into a certified corridor enabler for the road corridor side (beyond South Africa to the SADC region) 5. Facilitate a Network of Peers The executives and supply chain directors of several branches have expressed that there is a need to meet with peers, share knowledge and increase cooperation with leading industry partners with a relevant agenda, driven by achieving pragmatic improvements and results. The peer network will be built on the basis of content starting with the theme rural / micro distribution. Many companies struggle with this issue, yet some are successful at it. As this topic is complex it requires ways for companies to increase their joint learning. This might well coincide or partly dovetail with an Action Learning Program for Peer network participants supporting a widely shared ambition to move towards more supply chain maturity. 6. Connecting existing networks How to benefit from existing networks and communities when building (new) communities of companies? Within the South African region many networks are already in place connecting all kinds of organizations that are involved with sustainable logistics. The challenge is to confluence the potential of existing networks instead of putting them aside and starting all over again. This project is to develop a common governance framework starting from a corridor community perspective that enables further integration, optimizing value for a diversity of participants. Chapter 5 summarizes the status of these projects by December 2017. Final Report, page 11 4.3 Pilot program for development of sustainable logistics in the South African region How to integrate these key elements into one synchronous operation? As described in the Inception Report Confluence with key players co-designed a program for Corridor Community (Flow) Development. Objective is to stimulate the development of green supply chains and involve entrepreneurs and stakeholders. Key elements are to enable and facilitate 1. Improved utilization of ‘mobile’ infrastructure, such as energy efficiency of vehicles, cargo bundling to reduce empty kilometers, et cetera. 2. Shared governance, which supports (horizontal) collaboration between shippers and logistic services companies and addresses gain-sharing issues. 3. A public / private platform for knowledge sharing and recognizing companies, that commit to making their logistics and mobility processes more sustainable. The inherently integrative character of the program will set two flywheels in motion: • Shape a community that shares and generates knowledge, hence propelling further innovation opportunities • Entice private companies to visible measurable actions and/or initiate projects to implement sustainable logistic solutions, individually and collaboratively. The program outlines are relatively simple and straightforward: Essence of the program: - Build a community of companies and create a program to harness the power of business in service of societal improvement: poverty alleviation, environmental improvement and optimizing the use of infrastructure. Key requirements for the program: - Customer driven; follow the energy of participants - Long term direction of the program is (supply chain) maturity of companies - Presence of a Trusted 3rd Party to initiate and facilitate the program (as a catalyst) - Awareness that these communities need continuous learning and development Core elements of program execution: - Connect real people that can make and will make a difference - Focus on unrealized potential within and around these core people’s businesses - Identify value adding stepping stones to realize this potential and key drivers - Initiate and guide practical projects that yield value and perspectives - Connect people with ideas, ideas with people, and ideas with ideas - Action Learning Programs based on ‘life’ issues emerging - Allow / stimulate participants take ownership - Develop shared governance as support Final Report, page 12 Incentives for participants: - Availability of Trusted 3rd Party that initiates and facilitates practical projects - Peer-network(s) that strengthen synchronicity and collaboration - Meeting new people and new ideas (cross-fertilization) - Getting results participating in projects that add value to the business - Outsourced credibility: create showcases of successful companies and initiatives Schematically the pilot programmed could be outlined in one single sheet: Pilot program for community development Projects currently in motion Platform for knowledge sharing PEER NETWORK Shared governance towards collaboration ACTION LEARNING PROGRAM CORRIDOR DEVELOPMENT CONNECTING EXISTING Improved utilization of NETWORKS ’mobile infrastructure’ ROAD TO RAIL RURAL & REVERSE RTMS & PBS CHALLENGE DISTRIBUTION Final Report, page 13 5. Actions set in motion, parties involved and securing continuity As described in the draft final report, Confluence organized a number of workshops during visits in October and November 2017 to discuss and further enrich the six project proposals and decide what is needed to actually start working and/or to secure continuity of the project(s). 5.1 Actions set in motion and parties involved The following results were concretely accomplished. Supported by the broader group of companies, institutions, IGOs, NGOs and other entities Confluence consulted during its assignment. • With Transnet Group (Transnet Executive Board, Transnet Freight Rail and Transnet Port Terminal), the Maputo Corridor Logistics Initiative (MCLI) the Walvis Bay Corridor Group (WBCG) and the African Corridor Management Alliance (ACMA) chair, agreement was reached to co- develop a joint SA corridor alliance that embraces the strategic perspective, and will streamline its joint capabilities for containers into a frequent shuttle service for FMCG, rail compatible agro- produce by reefers, and transit flows. • • With a range of inter alia shippers (Unilever, TFG, Samsung, Mass-mart, Heineken, Shoprite/Checkers, PepsiCo/Simba, Woolworths, Pick N Pay, Spar Group, Nestlé, House of Busby, ZZ2, Copia Global, McCain etc.) and LSPs (DSV, Imperial, Barloworld, Grinrod etc.) a ‘corridor flow community’ is being developed to pilot and foster synchro-modal container corridor management, addressing amongst others: reliability of container transit times, capabilities to redirect flows to rail, improve safety and efficiency on the roadside of corridors, share data in a trusted third party platform. Final Report, page 14 • With Road Transport Management System/Performance Based Systems (RTMS / PBS) two consecutive board workshops led to reframing this operation into a certified corridor enabler for the road corridor side, essentially by moving into a stand-alone SADC platform for fleet rejuvenation and fleet management practices. Also supporting the road to rail initiative with a first and last mile solution to foster the road to rail movement. • With Copia Global, an African based micro distribution player with over 4000 distribution points already active in Kenya, Tanzania, Uganda and Zambia agreement was reached to develop a micro distribution/micro extraction scheme for townships and rural areas around the main three corridors. Key is to balance inbound flows with outbound flows that empower local socio-economic development and healthcare issues. • Pargo, a SA start-up based in Cape Town with over 2500 township based micro-dispatch points for retail package handling, will explore options to link into micro-extraction to balance their flows. Final Report, page 15 • GLS equipment services with a growing presence in retail logistics equipment and recycling of plastic with substantial operational presence in Cape Town, Johannesburg and Durban has agreed to take up return plastic, PET and battery flows from local communities and townships for value-adding community projects. • WWF agreed to be the third pair of independent eyes and to co-sponsor in its public-private stakeholder network. WWF’s involvement is to pervade all operations envisaged from a resilience/climate change perspective. • SAPICS as South Africa’s leading source of knowledge and expertise in supply chain operations feels very well supported by the idea to start an Action Learning Program on strategic issues and development on resilient supply chain development. Together with their chair Mr. Mungo Park, agreement was made to jointly develop such an Action Learning Program for the Executive level together with the network we spoke to and their present and future members. Final Report, page 16 • Heineken, PepsiCo | Simba & Imperial will start sharing data, flow-mapping and flow bundling by co-loading their flows to outlets together based on a joint analysis of their supply chains. Above-mentioned players are ready to continue these mentioned pilots and get things going from an emergent strategy viewpoint. Being a relational business co-developer Confluence frames this with three longer-term questions that pertain and are to receive increasing awareness: 1) How can existing corridor capacity be leveraged in a way that is resilient for climate change, enables the corridor players to invest in rail de-bottle-necking incrementally with increasing utilization, and nurtures SADCs socio-economic development and poverty alleviation? 2) How can the current here and now socio-economic drive for people to a resilient future for their families and communities be mobilized in a no-regret ensemble of pathways to the future that empowers nurtures and fosters the corridor’s existence as their life artery? 3) How to develop this on the basis of a pervasive living systems philosophy3 that works with the SADC paradigm? 5.2 Securing continuity Key players welcome an opportunity to lay their joint case before a proper IGO forum, where also players from outside SADC and outside SA’s private/public arena could consider to participate and share resources and insights across borders. This journey is still in an early stage and vulnerable. It develops over time and needs broad support. Company’s plea to continue to develop the peer network to strengthen momentum and support. A neutral party is asked for to pull the different initiatives together and set projects in motion. To work together is -by culture- not a thing for SA companies, so they need guidance here. Key companies willing to make substantial investment in time, valuable resources and money recognize the joint need to actively participate in acquiring funds to continue this project. As a result, Confluence proposes a community initiative to gain wider support. Somewhere late March or early April of 2018 we intend to organize a workshop in Washington DC to bring together key corridor flow community people at strategy/executive level with World Bank, AfDB and some UN agencies like UNDP UNEP and UNECA. Purpose of the workshop is to discuss co-funding of next steps. Each player brings in its own perspective(s) and interest(s) to move forward with joint values and shared perspectives. Confluence proposes to further discuss this idea in the January 2018 workshop in Washington DC. 3 See for an example of an open living systems approach in practice the South African based company ZZ2: http://zz2.biz/governance/strategic-management/ Final Report, page 17 Appendix 1. Southern Africa’s corridor communities: an evolution in essence 1.1. The emergence of transition potential Transport infrastructure, like any infrastructure, is in the end judged against effectiveness ‘does it have the effect that one aimed for or a significant other beneficent outcome?’ Traditionally infrastructure effectiveness is mainly the multiplication of two factors, each with its own local or regional multiplier: solution quality and utilization. Usually a high economic eco-social and ecological return couples a reasonable-to-good quality solution with a fairly intensive utilization, provided there are drivers to gradually improve the quality of the solution and increase the utilization. Utilization is determined by communities of players, which are prepared to use infrastructure to improve their transport and business processes. A more effective usage may require these communities to change. But their priorities are different. Any change process is a matter of trust from the past, of value in the present and of vision for the future. We need to trust the circumstances ourselves and other players, we need to perceive direct value, and we need to experience a credible sense of a path forward. Final Report, page 18 There are essential differences in perspective between financing infrastructure and effectively using it. With financing decisions in infrastructure, one usually starts from vision, refer to value, and assume trust, like ‘will this investment first and foremost generate a financial return?’ Communities that determine utilization, consider change, look first for trust, search then for value, and only gradually agree on a shared vision. The trust factor depends on what the infrastructure does in terms of driving transitions, like ‘will this infrastructure help me or us to become more resilient?’ Re-thinking the world for tomorrow depends on ability and readiness to change, hence on communities, hence on trust. Transport infrastructure in Southern Africa sets a challenging example. This report focuses on how to leverage infrastructure for development purposes: how to mobilize trust into societal value at large. 1.2. A hub-corridor model From an economy development perspective South Africa and its neighbors, might be viewed as an ensemble of hubs linked by corridors. So there is corridor related traffic and transport, and hub related traffic and transport. And the two are interlinked: corridor flows feed hubs and hubs feed corridors. A significant difference between a conventional hub-and-spoke model and the South-African situation is that in between hubs, corridors have many tie-ins and tie-outs where goods flows can be side-streamed or linked in. The difference is about connecting rural areas and townships into tomorrow’s economies, from their own values and perspectives. Suppose Southern Africa would only have road infrastructure. Corridor flows and hub related flows would often be competing for the same limited solution space, particularly in the vicinity of hubs. And in a rather rapidly growing economy this would often generate system blockages, interfering with both corridor flows and hub flows. Final Report, page 19 For people traffic, one could easily see this. Areas of high economic activity where everybody hits the road, soon become impenetrable (South-East Asian cities, South-American examples). For goods flows it is no different. Particularly Fast-Moving Consumer Goods (FMCG) and perishables would be competing for the same road infrastructure capacity around the same times of the day. For South Africa with its severe under-utilization of rail infrastructure where in intense traffic corridors road and vehicle safety records add insult to misery and limit actual road capacities this preference for road is a development barrier that can be abated with an alternative that is there now, boosting return on both rail and road. Final Report, page 20 Particularly for corridor flows, rail would be an excellent alternative. It unloads road infrastructure for alternative purposes like people traffic and first miles/last miles transport, unleashing development potential and enabling new opportunities. The current key constraint in flow capacity is both in hub flows in intense urban and township areas and in corridor flows, particularly where the two interfere. To change the situation, look first for solutions that can generate value and trust within a fairly short time frame. And only then start looking for other solutions with a longer payout. Corridors have such an alternative: better usage of rail infrastructure potential. The road-to-rail challenge. With containers and reefers this is a relatively straightforward universal option with a proven pervasive power reaching deep into society, provided the drivers for change are mobilized that tilts business to the ‘rail unless’ perspective. Opening pathways into resilient futures... rail capacity creeps as a flywheel and set the flywheel in motion. Past investments often offer hidden openings by their underutilized capacity potential. At relatively low or marginal cost additional capacity can be made available to the market well before the need for substantial new investments kicks in. To rephrase this slightly, existing rail infrastructure is spent money with marginal cost for any additional utilization. Shifting any freight from road to rail frees road capacity, enhances corridor capacity, and grows rail’s presence as a viable affordable alternative. By the time substantial additional investments in rail infrastructure are required returns are solid and are part of an intelligent and well understood option play with substantial arguments for rail against modal alternatives. It works like a flywheel. This approach, referred to in this report as a staged capacity development strategy, has many advantages over more radical transition routes, as they build on trust from the past, offer immediate value in the present, and represent a credible scale-up path to the future. Staged capacity development comes with capacity creep at marginal costing. It is more adaptive to deal with newly emerging realities. It is learning in motion, with gradual but substantial gains in return on both infrastructure and resources. Staged capacity development comes relatively little to no regret and steadily increasing returns on infrastructure. Management can gradually move from a reality of having to deal with overdue maintenance to a perspective on preventive maintenance. With staged capacity development reliability of infrastructure steadily with time. Rail is gradually and affordably rejuvenated as a viable alternative to road and -by shear cost and resources differential- offers a high return, economical, eco-social and ecological. Staged capacity development as a strategy offers an affordable adaptive and nimble way forward for any developing economy with a still substantial rail corridor network, even when not reliable due to overdue maintenance and under-capacity in rolling stock. Final Report, page 21 1.3. Gateways into growth... South Africa from a bi-modal corridor perspective 1.3.1. Gateways and corridors Considering sea to inland, inland to sea, and inland to inland, Johannesburg as a container flows node-point offers a challenging though underutilized diversity of rail-plus-road perspectives: road and rail running (largely) in parallel, with many regions of current and future economic and social development and growth potential alongside. Three long-haul corridors link Johannesburg with three viable seaports south, west and east: Durban, Walvis Bay (Namibia) and Maputo (Mozambique). Walvis Bay and Maputo and The Johannesburg/Pretoria cluster offer additional corridors north into the Southern African Development Community. These are three examples of (largely) bi-modal corridors connecting seaports with container terminals with economic development regions deep inland. And the ports connect with other developing regions: within Africa (Zambia, DRC, Angola, Zimbabwe). Long-haul sea-ships have a choice between also Cape Town, Port Elisabeth and Coega, all linked into rail tracks up north. And there is a short sea container shuttle service from Walvis Bay and Maputo serving seaports mentioned. Rail infrastructure, the road network and ports container terminals offer huge interconnectivity potential. The ensemble feeds inbound flows, enables outbound flows, and connects inland regions in the SADC subcontinent like arteries linking locally into finer veins. Final Report, page 22 And then, unaware of synchro-modal potential, very substantial agro flows from regions with tremendous agro potential are still largely road-bound where rail is a feasible cost-effective and ecologically a more resilient option, provided it offers continuity. 1.3.2. Containers and continuity Continuity requires available and appropriate options. Containers offer a uniquely universal payload system. But in retail areas, in urban areas, in townships and in rural and remote areas containers, simply too big a unit payload volume, create a demand for sub-containers, ‘boxes in a box’, transforming containers into a multi-granular option. Yet rail is underutilized for containers, roads can be highly congested, and container flows are unbalanced with many containers moving idle. Rail in container transport is at present underutilized as an enabler for socio-economic development. Add multi-granular and it fits, suiting many existing needs and enabling new pathways. Adaptive, nimble, for all. When SADC rural areas are gaining increased recognition as future sources of sustainable energy carriers like green hydrogen, the rail network with road for feeder flows may unlock this additional development potential faster than road, certainly when multi-granular. When embraced it may materialize explosively in the 20’s. Container by rail is the future. 1.3.3. Container flows and imbalance Any balancing is an act and an art. Flow balancing is a pervasive strategy and a matter of perseverance. Container flow balancing requires identifying and nurturing outbound flows equalizing inbound flows, smart synchro-modal switching, and advanced unit track-and-trace capability enabling also pattern recognition to follow emerging patterns. Add multi-granularity and one boosts in one stroke the ability to mobilize people in densely populated township-like and remote rural areas by orders of magnitude. This perspective shifts the current unbalance in container flows from a blocker to an enabler. All of this is available. Putting it together is not overly complicated. It requires an incremental self- propelling transition strategy: green flow corridors for arteries, micro-distribution for veins and reverse logistics to balance flows in the system. 1.4. Developing capacity... utilizing underutilization Thinking about turning issues into opportunities rail utilization is a point in case. The SA situation would lend itself for a staged capacity development approach. Current estimates on several key rail corridors indicate 5-20% actual usage of container flow capacity. Scaling up to say 30% would already make a major inroad on road flow capacity statistics and can be done without substantial investments other than organizing supply chains differently. Modal shift can be at marginal pricing. And multi-granularity eases the shift. Final Report, page 23 Up to say 60% of design capacity one will have to do some investments but would have the chain of self-perpetuating improvements already going and show relatively high and measurable returns. Recognized, rail infrastructure will justify incremental investments. Beyond say 60% up to say 90% would require more substantial investments with longer lead times such as in advanced management systems. In this phase, an approach like staged de-bottlenecking will allow investments to keep pace with increasing returns. Only above say 90% one runs into flow constraints and may have to consider substantial capacity extensions, but by then the investments required are part and of a healthy option play with by then solid return outlooks, big data to play scenarios and clear-cut what-ifs. 1.5. Capacity creep, the unknown investment banker By the time the rail network’s container flow performance nears 90% of its capacity that capacity has increased already substantially compared to the ‘original design capacity’ by the inherent capacity creep through smarter operation, creative solutions, integrative thinking and intelligent incentives. Mentally it is money sunk; in reality, it is ‘free capacity’. Recent studies go as far as a factor 3 for capacity creep. These studies assume gradual innovations in train scheduling, track streamlining and preventive maintenance that allow more passes per block per hour. This is guided by an ensemble of intelligent emergent (opportunity based) strategies to shift the operations envelope from ‘managed flow’ to ‘free flow’. Ultimately this enables unhindered flow of autonomously traveling containers. 1.6. Revving up the flywheel... getting the shift in motion How to feed the flywheel of change? And how to maintain the feeding of energy to the flywheel? No matter the abstract character of the questions behind the quest, they need a minute of reflection before diving into the tangible specifics. 1.6.1. Questions and dimensions: what for whom? The game is to create space to allow the circumstances to emerge for a transformation to a resilient arteries-and-veins system for essential goods flows. Essential goods flows are essential ingredients of a more balanced and balancing development. What these are now we may think we know, what they will be next decennia we can only guess. And all can shift... today can only have some idea of what tomorrow needs. So how to get infrastructure and its modes of operation adaptively and nimbly fit tomorrow’s needs? How to arrive at pathways to a transport infrastructure that simply helps each and every person to have a proper existence and subsistence? How to get past current and future infrastructure investments to yield the proper societal return? Without getting lost in how to define ‘proper’ or ’societal’ or ‘return’? Priorities shift with changing conditions circumstances and climate. These tend to move fast. Final Report, page 24 The explicit challenges for NOW and HERE are tangible: how to get a substantial shift of container flow from road to rail whilst switching more flows to containers? How to balance container flows? How to leverage the infrastructure and modes of operation to serve people needs? And genuinely help people and communities to thrive? It does not get very specific, does it? Well, that is because the perspectives of any change process inherently change on the go. So, what to say about the change process? Also, here the abstract precedes the specific. 1.6.2. Moving to shift: controlled change or guide transition? Any transition implies a systemic shift from one way of looking to a fundamentally other way of looking. Such a shift requires new collaboratives that create the circumstances for learning to deal with new approaches and ways to co-exist. The essential ingredient for any transition at the start is to get key players together around a set of safe joint values, in a secure governance framework, bonding by a coherent almost self-explanatory ensemble of caring shared perspectives. The ensemble of key players is developed as corridor community, a cooperative of rail and port infrastructure owners/operators, shippers, LSPs (Logistic Service Providers), road transport companies committed to resilience, and in the backdrop IGOs, NGOs and CSOs. 1.7. Community governance: formal or developmental? The governance framework is an unwritten yet explicitly shared agreement on rules of engagement and boundary conditions for the play to develop supported by a facilitating trusted third party that fosters coherence, guard’s consistency, and nurtures momentum. Coherence, consistency and creativity are amplified in a learning network setting. Any change needs to be based on trust, each step needs to generate tangible value for most preferably for all and perceived losses to none, and the players accept a degree of creative tension between the ’vision’ and ‘reality’. Final Report, page 25 Only when players learn from the experience, they remain keen to learn more and move on. This is a creative challenge in itself. In more specific terms, these elements can be sketched out in some detail, but will move with the gradual shift in perspectives. Experience learns that after some while past perspectives tend to disappear as they are being replaced. 1.7.1. Drivers and stakeholders: compromise or opportunity? Drivers are likely to vary per type of key player. Sometimes these drivers seem to conflict. Question is whether to resolve that potential conflict, or to limit access to the corridor community, or use diversity and inclusiveness to span a challenging solution space. Direct stakeholders already show a spread in their interest: • Corridor operators/owners need more volume and intermodal access • Shippers need convenience and reliability, • LSP’s need lower cost and faster response, • Transport companies need less road congestion. • And the issue is getting even more complicated with indirect stakeholders: • Civil Society Organizations need less pollution and safer roads, • Inter-Governmental Organizations need socio-economic development, • Non-Governmental Organizations need smaller footprints and environment care. But is it more complicated? Indirect stakeholdership will materialize anyhow. And one would wish to co-exist and co-develop lines of thought and more adaptive rules of engagement, with external advocacy and outsourced credibility. 1.7.2. Certification: divergence or mobilizer? There is a solid complexity theory argument to include also indirect stakeholders and embrace them: more varied stakeholdership creates a more sophisticated solution space, and with it more options and better trade-offs, i.e. longer term a more dynamic mobility. The constitution seems to yield an ensemble of almost irreconcilable demands. Yet if one can set the wheel in motion the demands of all key players -provided they are respected on equal footing- can in due time be met through a vehicle that by its existence sets standards and is mobilized to move them whilst learning to identify viable pathways. A way forward that seems to fit the SA and SADC situation and stages of development is introduction of certified flow corridors. Do not exclude anybody, but give preferential treatment, a wider options package and priority access to who certify his or her operation. Certified flow corridors allow co-existence of different maturities and standards, and gradually enhance the minimum standard through smart collaboration instead of power play compromising. The approach leverages what is to get to better, mobilizes creativity and motivation of all players through natural mechanisms, and is emergent by nature. Final Report, page 26 1.7.3. Certified flow or qualified corridor: tag or continuous drive? Essence of the certified flow corridor concept is to combine three elements that create a magical triangle (‘impossible but wouldn’t it be great if...’): better and cheaper and faster, none to be compromised on at any stage. By combining three inherent dilemmas into one trilemma a magical triangle avoids that critical aspects are being overlooked, be it consciously or deliberately trilemmas generate tangible creative tension forcing the play beyond old barriers. They stretch the envelope. Flow has attributes that can be measured and monitored. These are independent parameters against which quality improvement can be evaluated. Certified means that the payload transfers through the corridor meets continuously improving standards. The qualification ‘certified’ says guaranteed standards in all relevant areas of resilience and good governance as agreed between the key players, with a continuous drive to shift payload mileage from road to rail, and to shift rail traction power to renewables. Certified flow sets the boundary conditions for the operations envelope, and moves the standards with progress made. Certified sticks to the quality of payload transfer not to the corridor. But both flow and corridor are monitored and frequently audited. Yet, qualification for ‘certified flow corridor’ has to meet independent continuously improving standards in the facilities it offers, in its governance, its management systems, its systems integrity, its technical and technological capabilities. Final Report, page 27 Also, its performance in certified flow as a percentage of total throughput and against qualified target capacity. Hence demonstrable commitment to good governance and continuous improvement is essential, as only then the creative tension is maintained. 1.8. Rules of engagement: rules or solution space? The combination of flow certification and corridor denomination sets the drive for continuous improvement against the needs of the corridor flow community members, who as key stakeholders have a clear say in its boundary conditions and engagement rules. Cornerstones of good governance of the proposed system are that only certified members of the corridor flow community can vote on rules of engagement, that access to that community meets auditable standards, and that membership can be lost on defaulting. Qualifying as a certified flow corridor allows shippers LSPs and transport companies to report within their management system according to independently verified standards. Compatibility with a recognized international framework is recommended and ensures that aspiration levels move at least with continuous transcontinental benchmarking. Also, it is recommended to agree on standards in structure according to minimum critical specification between the corridors. The African Corridor Management Coalition could be involved, the first pilots to provide the reference. 1.9. The initial game: where to engage for which purpose? Key to unlock access to a viable solution space, a space where feasible and viable solutions do exist, is the corridor player. The corridor owner/operator can play payload pricing against marginal cost, can iron out operations and can facilitate access to rail. Against marginal cost container transport by rail beats the road option beyond say 400-500 km. All corridors identified meet that criterion. Provided the corridor players learn to co-develop reliable co- operation service certified flow performance improves. Transnet’s Durban to Johannesburg/Pretoria corridor could be a very valuable pilot, followed by Maputo corridor and possibly Walvis Bay Corridor. 1.10. Community founders: first come first served or select? Key to initial success is the ensemble of corridor community founders. The start-off and early follow- through on a certified flow corridor is likely to be critical to longer-term perspectives. Incompetence and limited leave a long legacy of limited perspectives. There is an argument to structure the initial search for partners to a diversity of high ambition competent players with headroom. The group of founding partners proposed reflects this adagio and harbors an impressive cluster of relevant experience, staying power, and investment potential and international reach. Final Report, page 28 1.11. Leveraging change: guidance or acceleration? Starting point to get the flywheel in motion is to nurture areas of trusted value. Feeding the flywheel’s energy is a matter of steering towards amplifying aggregate gains for an increasing number of players, without sacrificing shared perspectives or joint values. Essential elements of any corridor community are branding, capacity building and competence development. These need co-funding to develop a position. IGO involvement is crucial, but may need initial (co-) funding, NGO presence a health/credibility check. An early investment to consider seriously is to involve a trusted (read: no vested interest) 3rd party. Crucial is to involve such a TTP from the very start of concept development and structuration. Financing is to reflect the independent position. 1.12. Enhancing growth potential Once a certified flow corridor gets well underway the speed of development increases with spread, throughput diversification, co-optation, professionalization and economical Eco social and ecological effectiveness and impact. This is referred to as feed forward. Amplification of early gains by widening reaches, consolidation of synchronicities by boosting impact and advocacy through constituency development. Some specific examples of feed-forward approaches and perspectives considered as crucial and l extensions to leverage the impact and effectively of certified flow corridors. Emergent system development is about early spotting of where energy materializes and the drivers behind it, testing what kind of directional guidance this gives and stabilizing this flow direction. It requires going with day-to-day operations and requirements, making modifications with oversee able impact feasible and desired and providing strategic guidance and structural investments longer term. 1.12.1. Motion in feed forward (1): scalable add-ons and timing Focusing the play on containers, three related challenges emerge as worth fostering from an early stage onward: • Multi-granular micro distribution to deal effectively with connecting hub-flow issues, both in intense urban and township areas and in rural areas, • Reverse logistics (e.g. product flows from local to markets, waste return flows) to improve container usage, • Short sea shipping to supplement the rail/road corridor capacity. With the additional challenges, one can expect a time lag... only when more containers arrive at the end of a corridor micro distribution players will start setting up multi-granular (sub) container schemes that will support the synchro-modal road-to-rail drive. This in turn will enhance the potential and flexibility of reverse logistics. Final Report, page 29 In parallel a short sea-shipping corridor can be integrated along the Walvis Bay - Durban - Maputo axis that can extend SA’s corridors ensemble’s flexibility and capacity relatively low cost, needs driven and scalable. Johannesburg, Walvis Bay and Maputo all offer challenging inroads to the other Southern African Development Community area. This potential has already been recognized in the African Corridor Alliance as sponsored by UNECA and chaired by the Walvis Bay. Serious consideration should be given to extending the scheme within 3 years to include these into the scheme... it enhances both impact and reach very significantly where there is already significant cross border goods traffic. All key parties relevant for the proposed staged approach have been identified and participate already in next stage thinking and ideas generation... 1.12.2. Motion in feed forward (2): micro distribution inbounds as corridor traffic builder Copia Global studied supply chain solutions in rural and township areas. Through detailed analysis they concluded that for many reasons well understood goods often don’t arrive at the end customers, mainly because traditional supply chain and retail approaches in these areas are not able to carry wholesalers (minimal margins, large volumes, guaranteed throughputs only... ‘Otherwise they do not have the money to purchase large parcels at discount prices’) and retailers (no working capital to keep stocks as people spend their money for needs today... ‘And local community pressures to share gains with disastrous effects on local business resilience’). Copia’s concept is simple. Carefully select one or contact point(s) in a local community and give her or him access to a virtual product prospectus. Then only move the product ordered the moment it has been paid for. Simple, straightforward, solid. There is a lot more to this in detail, and Copia is on a long and at times awkward learning curve, but it works in countries like Kenya, Tanzania, Uganda and Zambia. And Copia is prepared to move the concept into SA, with local people. Final Report, page 30 Copia Global recognizes what rail corridors can do for them, yet acknowledges that containers (20ft or 40ft) might be too voluminous for practical considerations. This builds the case for a more granular approach (sub containers in containers, a ‘box-in-the-box’ concept). Still, if only inbound, it comes with a severe imbalance, and a significant cost penalty. 1.12.3. Motion in feed forward (3): nurturing outbound as socio-economic lever All being equal there is no preference for who plays what role, only that each and every person and party can play a role that is own, authentic and connected. This may sound like an open door but does something essential to the thinking in terms of flows. If there is no outbound flow, there is no balance... nor economically, nor Eco socially, nor ecologically. From an infrastructure perspective, the key empowerment lies in the people in the communities (‘without them we connect nothing with nothingness’), and their communities. Micro distribution enables it. And corridors are a function (that’s what we are for’) that may be of help, a function that may have alternatives. From a people/community perspective people are a function (that’s what we are’), micro distribution is an enabler, and corridors empower (‘unlocking potential’). In both flow directions, the micro distribution aspect is enabler. Goods in, money out, money in, goods out. Where there is no balance in terms of value creation and where there is a flow unbalance the system cannot be resilient. So, the enabling function (micro distribution) needs to be two ways. This says that the logistic system, being data flows or physical flows or people flows, has to cater for both flow directions equally well. And there lies a key that unlocks the entire system into flow. If the logistics system enables people to get care and knowledge and products and people freely in and out equally easily there is a balance where the system can flow freely. That may seem utopia, but is it? Final Report, page 31 As a guiding principle, it works. Final Report, page 32 Appendix 2. Overview of participants in the Peer network Currently the following companies and organizations are involved in the project: Company / organization Meeting with Heineken Ruud van den Eijnden CEO Southern African Region Heineken Deena Moodliar Logistics Manager Heineken / Sedibank Brewery Guy Duringer Supply Chain Director Imperial Logistics Managed Solutions Riaan Cronje Business Development Director Massmart Group Richard Inskip Group Supply Chain Director Massmart Game Albert Voogd CEO Massmart Group CFO Hans van Lierop Group CFO Nestlé Rudolf Stapel Director Wholesale Food Nestlé Salman Nazir Supply Chain Director Peninsula packaging Encia van Rensburg Janssen Supply Chain Director PepsiCo / SIMBA Herman Muller Customer Service & Supply Chain Director Samsung Enosh Perumal Supply Chain Director Samsung Tommy Kang CEO South Africa Samsung Edwin Altena President Samsung SDS EMEA Samsung Wilco Koers Logistics & ICT Chello Samsung Jinwook Chung Chello developer Samsung Duane Saunders New Business Development Consultant The Foschini Group Jan Tukker Supply Chain Director The Foschini Group Mirjam Patel Manager Outbound & Inbound Import and Export The Foschini Group Andrea Agostini Logistics Manager The Foschini Group Brad Rothenburg Property manager Final Report, page 33 The Foschini Group Chris Harries CSR manager The Foschini Group Peter Adams Transport Manager The Foschini Group Michael Rhategan Data Analytics ZZ2 Tommie van Zyl CEO ZZ2 Japie Burger Group Supply Chain Director Limpopo Economic Development Board Richard Zitha Chairman SANMVA Hendrick Phasha SANMVA Nkele Monyeki Unilever Ross Plumbley Supply Chain Director Unilever Matthew Naude Unilever Amanda Padachie Unilever Sandeep Desai Vice-President Supply Chain Southern Africa T-Mobile Systems / Transport Forum Harry van Huijsteen Custodian CSIR Paul Nordengen Vice-President RTMS and Chief Researcher Dutch Embassy Tineke Mulder Head Economic Affairs Dutch Embassy Khoa Bui Economic Affairs Transport & Logistics Dutch Embassy Deidre Batchelor Dutch Embassy Jack Vera Dutch Consulate Nicchi Walker Dep Consul General Dutch Consulate Tom Vesters Staff Member Public Relations Dutch Consulate Claude van Wyk Staff member economic affairs Maputo Corridor Barbara Mommen CEO Maputo Corridor Tejas Nataraj CEO DP World Maputo Sapics Jenny Froome Managing Director Sapics Clive Froome Partner Final Report, page 34 Sapics Tonya Lamb Operations Manager Sapics Mungo Park Chairman Sapics Tanya Kabalin advisor to the Board Sapics Richard Dos Santos Sastalc Yayeeri Kisaame CEO Stellenbosch University Jan Havenga Professor Stellenbosch University Zane Simpson Lector Stellenbosch University Reginald Kgwedi Lector and CEO Tastalc McCain Food Group Karl Thorington Executive Supply Chain Barlo World Rory Sterling Business Development Barlo World Ian Bird Rail Logistics executive Barlo World Sarah Lubbe Markting Manager Barlo World Tebogo Kethupilwe Rail Logistics Barlo World Adriaan van Tonder Madibana SA Madiba Madibana CEO Chebo-Pele Ltd Molapo Tsosotso CEO World Wildlife Fund Saliem Fakir Head Policy & Futures Unit World Wildlife Fund Tatjana Von Bormann Senior Manager World Wildlife Fund Louise Naudé projectmanager Road2Rail Phatisa Private Equity Peter van As Senior Investment Partner & Portfolio Manager TFG Carin Wiese former Head Legal department Olakira Tanya Kabalin CEO Olakira FMO Ewout van der Molen Investment Manager FMO Annette Berendsen portfolio manager FMO Willem de Boer country manager SADEC Final Report, page 35 FMO Louis Strydom Senior Business Developer Walvis Bay Corridor John Smith CEO Walvis Bay Corriror Clive Smith Program Manager Development AbInBev Jurgen Vivier Business Development AbInBev Krzysztof Zak Business Development ShopRite Checkers Reuben Jordaan Business Development ShopRite Checkers Photy Tzellios Supply Chain Executive GLS Systems Dale Good Managing Director GLS Systems Franci Engelbrecht Supply Chain Manager GLS Systems Zeneldi Geldenhuys Strategic Advisor GLS Systems Trevor Joss Sales Executive House of Busby Bronwyn Engelbrecht VP Supply Chain Woolworths Brad Nitsckie Head of Supply Chain Pargo Lars Veul Managing Director Pargo Derk Hoekert Development Director PickNPay Paolo Peereboom Group Executive Director Food Buying & Supply Chain PickNPay Cobus Barnard Executive Director Supply Chain Awicsa Lebogang Letsoalo President Transnet Group Mike Fannucci Group Executive Commercial Development & Group Change Manager Transnet Rail Freight Peet Benade Rail & Track Principal Transnet Port Terminals Timothy Keith Business Development Transnet Port Terminals Michelle Phillips General Manager Transnet Holding Gary Pita Group CFO Final Report, page 36 Transnet Holding Gert de Beer Group Chief Business Development Transnet Holding Edward Thomson Group Chief Supply Chain Executive Officer Transnet Port Terminals Faith Chetty Key Account Manager Consol Group Thomas Shaw Executive Consol Group Paul Curnow Executive Dawn Logistics Danielle Diedriks National Fleet Manager University of Johannesburg Prof Jackie Walters Chairperson Transport Economics University of Johannesburg Prof Rose Luke Senior Researcher SANEC Mark Agterdenbosch General Manager SANEC Mixo Mayimele General Manager SANEC Alice Cannoo Tomas Project Manager SANEC Wesley Smant Project Manager STC International Albert Bos Director Namibia National Development Plans Ned Sibeya Chief National Planning Commissioner Namibian Port Authority Immanuel Hanabeb Executive Namibia Ministry of Industrialization, Trade & Wilbard Nashandi SME Development Namibia Consulate Cornelie van Waegeningh Honorair Consul Namibia National Planning Commission Precious Munyungano Chief National Development Advisor Namibia Ministry of Works and Transport Nicky Mutame Chief Policy Analyst Namibia Ministry of Finance Uazapi Maendo Deputy Director Namibia Ministry of Home Affairs & Kukeinge Hishekwa Director Visas & Permits Immigration Final Report, page 37 Namibian Ports Authority Elias Mwenyo Senior Manager Commercial Namibia Roads Authority Angelina Kabenda Senior Transport Economist GIZ Ernst Riehle Technical Advisor Walvis Bay Port Users Association Riaan Lothering Chairman Namibia Logistics Association Harald Schmidt Secretary General Transnamib Zebedeus Mukungu Executive Commercial & Marketing Lebo’s Soweto Backpackers Lebo Lebo’s Soweto Backpackers Shoes SPAR Group Kevin O’Brien Chief Executive Sustainability & Risk Management University of Pretoria Wesley Niemann Programma Manager Unit for Supply Chain Management Manucore Supply Chain Intelligence Sean Culey Executive Vice President Research & Advisory Services Goodyear Yasmien Beckett Demand planning manager South Africa & Sub Saharan Africa Inchainge Hans Kremer Partner Climate KIC Naren Bhojaram COO Final Report, page 38 Appendix 3. Executive Summary of the notes of the different encounters Below please find a summary with the essence of the interviews we conducted (in chronological order). CSIR - Paul Nordengen • RTMS – Road Transport Management Systems & Performance Based Standards (long vehicles) RTMS certifies trucks. It aims to get companies on minimum efficiency level. • Incentives for PBS: vehicles save a lot (fuel, hours, kilometers). PBS is all about compliance. Breaks etc. need to be good. RTMS is useful certification for this • Some circles in government are resistant to PBS (risk for bridges, breaking force, fatigue of material) • Paul needs help to get the message out. They currently have awareness workshops. Many companies don’t believe the savings of RTMS Government could play bigger role if they give incentives to RTMS companies. However, CSIR wants people to join for the right reasons (intrinsically motivated). RTMS promotes to internalize RTMS; not to have a consultant do it for you. No incentive scheme yet • Paul is attracted to benchmark approach (compare yourself to other companies) and by action learning program • Action: have brainstorm session about potential of RTMS. Let Paul know when we are back in SA • Can we think of way to acknowledge companies that they are already very well optimized (fuel companies are very advanced in terms of RTMS) • How to include owner-drivers (big issues!) • Awareness on sustainability is growing; bigger companies are pushing it – for smaller companies it is low on the agenda. SAStalc - Yayeeri Kisame • Many studies been done, but it hardly filters through to stakeholders. That is why some companies are resistant • Issues: Safety (road fatalities, no harmonized safety standard, handling hazardous goods etc.) Help individual companies to engage in collaboration Green logistics is important. There is a green paper from the government Companies need help to translate Green objectives into their own structures (how to) Road to rail • Sastalc is non-profit, big resources issue (lack of money to attracts personnel). Yayeeri is only employee. Works for board. Needs involvement from industry. Would like to be the umbrella organization for the whole supply chain Has many ideas, but hard to implement • Wants to establish knowledge hub, training and capacity building (involve students in logistics – she would like help how to do this) • Has collaboration agreement with Sapics, but is not materialized Final Report, page 39 • Terrapin gives awards to companies. Awards are highly valued in SA • Would like to organize regular events for companies in whole of Africa, because SA is seen by other countries as example / innovative leader • Connects us to student leader (now lecturer in Stellenbosch: Reginald Kgwedi) • Would like to be involved in this project Nestle - Roelof Stapels & Salman Nazir • Maturity of supply chain is key issue for Nestle • Africa has not many big companies and is less dense in terms of logistic infrastructures • Important customers: Spar, Massmart, Pick n pay • Big issue is the many empty trucks • Spar asked Nestle to share grid on primary transport, but offer was not interesting cost wise • What is appealing goal for Nestle in terms of logistics optimization / innovation? Combine with other shippers? And ask LSP’s for joint offer? Interesting concept but beware of issues like: trust, fitting products and conditions etc., coordination, anti-competition law? Combining with non-competitors may be possible... • Nestle moves 150000 tons, they don't own transport. So, have a limited need to solve issues like this ourselves • Issues for Nestle: o Hijacking 16 in the last 3 months We create our own solution via convoys However, it is impractical to do this with others o Nestles has now 80 % optimization - wants to have 95% o Rail utilization 5%, road to rail is a challenge o Micro distribution is challenge • Open to try anything, but it needs to be Cost competitive and not result in rise in Workload in organizing it!! • There is a need to map locations and kind of flows / branches. To analyze potential of collaboration • Does Nestle want to be an example? Yes, they want to show people their practice • Would you be interested to meet with peers? Yes! But nothing has happened yet • Consumer goods council: has not touched it. Supply chain is no go area, due to competition law • AT Kearny wanted do something like that - was interesting for us • No shortage of knowledge about logistics, • But they don't have experience • And companies where they end up can’t really help them (.) • Customer supply chain has done a lot of optimizing (cost driven by the customer) • Less: business to business optimization • Sense of urgency on green supply chains in SA is lower than in EU Stellenbosch University – Jan Havenga • Getting acquainted and introductions & description assignment • Has done extensive research on logistics issues in SA Final Report, page 40 • There is a severe need and interest to become much more green and sustainable • There is an increasing awareness that the environmental footprint needs to be improved dramatically. However, companies have other priorities (‘short time issues’) that determine day to day actions • There are numerous initiatives mainly on the freight forwarding and logistics service providing side; not so much on the cargo-owners side • There are diverse programs designed from a more technical approach, not so much on the behavioral side, such as modal shift or collaboration between shippers / cargo-owners • The program as described looks very interesting and Jan would like to be involved Samsung - Mr. Kang and Enosh Perumal • Samsung SDS: asset light company. Makes use of local service providers • 90% of business is Samsung – wants to grow (external clients) • CELO system is being used. Could be used to optimize many shippers, but is not widely used yet. SDS would like to offer services to other shippers • Automotive and pharmaceutical are very developed branches • SA is combination of mature and immature industry – big gap • Challenge: this project may interfere with LSP’s • Samsung willing to participate in meetings and help to build more mature supply chain awareness • Issues Customs Port – delays in peak season (Durban) CO2 is issue for big companies but no incentives from government Security • Make appointment for CELO demonstration – and give feedback to SDS through ‘shippers’ eyes PepsiCo - Herman Muller • SA: road network is OK; rail is not • PepsiCo transports many snacks to the North. Moves a lot of air; hence it is not a rail product. Worked together with Heineken and other shippers via Imperial. No direct contact Own biggest secondary logistics network (distribution to customers in town ships) Open to all kind of collaboration to reduce cost • Strong price fixing legislation in SA – we are very cautious about this • Logistics in SA is 10 year behind Europe. They are driving centralization in logistics but still a lot of work to do • Contact with Shop Rite: Ruben Jordaan • PepsiCo is looking for synergies but this is a big challenge: we don’t have to compete on logistics • Service levels are important criteria for collaboration • Imperial is moving flows for a lot of principals so they are an important player to set this up. They bring a lot of stuff into rural area’s (IRL – imperial retail logistics) and will try to combine flows • Just like US, PepsiCo sales reps put stuff in the shops, but there is also ‘drop and go’ • PepsiCo doesn’t use bottles in SA. And soft drinks are outsourced to other company. Main product in SA for PepsiCo is snacks Final Report, page 41 • Rail has 2 working legs, besides that rail is a mess. Takes long and a lot of theft • Durban - Gauteng: many containers • Rail, “If it is not rolling, it is not working. If it is rolling it is not maintained” • Happy to participate re cost cutting projects and reducing empty kilometers. Be careful about competition law! • Is connected to Unilever, Shop Rite, and via Imperial: Heineken and Tiger Brands • Suggestion: where is empty vehicle surplus? Map networks and flows. • PepsiCo needs to know what their CO2 footprint is (‘performance with purpose’. Requirements are CO2 and efficiency, etc.) • Water is another big issue in SA • Pallets as well. There is only 1 vendor. Costs are high and pushed back to producers like PepsiCo. Pooling of pallets is big challenge. Tried it themselves but was too expensive (organizing cost) There is a high informal demand for pallets (dog houses ;-) How do we identify pallet surplus? Chep has platform with info but PepsiCo has no access. Is willing to pay for these services. Organize a braai and we will attend. No legal stuff. ACTION: send film with examples Massmart - Richard Inskip cs • Retail market is complex. Many maturity differences (from handpicked orders to fully automated). So, many challenges. • Consumer goods council SA, had ambition to o Provide standards o Government interaction o Bundling • Richard was one of initiators, but disappointed about results. Just achieved consolidated vision on GS 1 • Massmart in SA is basically 5 different companies, with very different characteristics. The units still compete. Lot of effort goes into streamlining own company – to integrate flows between the 5. Currently there are 5 of everything (ICT, ware houses, etc.). Import is integrated. Step 1 is to get internal flows and collaboration going. Have now created an internal LSP (inbound suppliers, distribution to Store, store – customer). They took Heineken account from Imperial Philosophy: let’s get price down and share the yield • They approached Transnet for rail, but didn’t get the right price. Will connect us to Mike Fanucchi • Massmart needs 1 train per day • In the past, there was a lot of train transport due to legislation but that has gone. Now they put a lot on trucks even heavy tiles • Good logistics (company) is trying to create a pallet pool • Massmart is willing to work with suppliers Not so much with retailers • SAB and Coke do their own logistics. They don’t want to break their existing network in the country • Inbound flows would be a good entry point for collaboration. When you go on from distribution centers into the country then it becomes complex (and more private – don’t want to share data) • Border control is complex. Massmart deals with a lot of compliance out of N-America Final Report, page 42 • Massmart never did a study about entering the county via Maputo to Jburg With current government they would be careful, but may want to try • Online shopping is coming but still small compared to EU. Massmart is suited to go that way • Revers logistics is an issue: cleaning bottle idea is nice. CONSOL glass may be interested out of CSR reasons – CEO Bobby Lawrensen, 083 3829131 Dutch Embassy - Tineke Mulder & Khoa Bui • Tineke Mulder: head economic affairs • Willing to support and help us to connect to their network • Flying Swans initiative: improve transport of fruit producers to Durban Port (a/o ZZ2 Tomatoes). FMO and Mercator also included • Jack Feira (Agricultur – ‘landbouw attache) would like to meet next visit • Deidre Bachelor, Health logistics would like to meet next visit • Orange corners: initiative to support entrepreneurs in SA via training and mentoring of (Dutch) companies in SA like Heineken. Also to support Dutch entrepreneurs in SA SA students are not yet involved. Co-create my city (joint initiative of Dutch and SA students Co-create approach in SA is effective and appreciated • We are welcome to use Embassy for meetings • Actions: - We will connect Rene vd Plas of port of Rotterdam to Port of Durban - Khoa can introduce us with Consul of Namibia and Botswana - Also port in Walvisbaai (Walvisbaai corridor group) - June 1: meeting with SANEC. We are invited to participate Dutch Consulate - Nicky Walters and Claude van Wyk / Tom Vesters • Contacted us because she was interested in trade law aspects of this project – can put us in touch with Trade law center We gave introduction of our project an Nicky described role of Dutch Consulate in Cape Town • Dutch start up in Cape Town: Pargo -> deals with post/parcel delivery • Can put us in touch with Health care -> distribution of medical supplies • Action: send summary of trip 1 and general assignment • Next time in Cape town we will meet with Consul Heineken - Ruud van der Eijnden, Guy Duringer, Deena Moodliar • Main goal is transport reduction • 95% of transport in SA goes via road. There are rail opportunities but not used at the moment. Road to rail challenge is interesting. Currently not much involvement in rail possible: Durban – Gauteng & Gauteng to big cities • For rail government involvement may be needed SAB has different challenge. They have breweries in cities • Consider the suppliers as well (glass, crown corks, pallets) Final Report, page 43 • Start with simple challenges, like” -quality of trucks -lighter materials -reduce empty km - back hauling -improve road transport -rail challenge • Sapics: best practice is valuable, but 80% is not valuable. Just the opportunity to meet the network • SA government is completely absent • “It would be very good to meet if it is pragmatic. If it is a meeting about big concepts, it will only be one meeting” • Who would be the informal leader of this? • Shop rite is a good company. Pick n Pay is messy • Currently a lot of side loading. Many retailers have no docks – and many sell out of the trucks • Warehouse infrastructure is poor. Sharing would be possible. In that case you could also share trucks. This is not done yet. Some of these concepts are hard to understand for SA • Retailers are key – they need to be at the table. They need to understand the concepts that the industry is working on • Aug – Jan is busy period – SA focused on operation SA mentality: easy to talk to but hard to commit them • Mental pressure for companies is high – survival modus. Many issues each day. There is limited availability to drive these agenda’s & strategically concepts. It is perceived as luxury. • Get small groups together (8 – 10). People easily join a party / braai • Don’t use embassy for hosting. It scares of other countries. • Cleaning Glass is good challenge: use service company model that is used in Germany Imperial - Riaan Cronje, cs • Maturity level on outsourcing is wide spread. This is a big challenge • From LSP perspective security is not a challenge, but a major cost component • Imperial puts in a lot of effort to reduce empty kilometers • Wants to consolidate flows, but is hard. Shippers don’t want to lose control even if it is cost effective. This is the ‘maturity’ problem • Imperial employs PBS and share advantage with customers. Also invest in PBS for transport companies who can’t afford investment • 5% of clients of imperial are mature: how can you improve this? • 15 and 16 May imperial is in Amsterdam. Would like to meet with shippers and us. • 9 – 12 May logistics expo in Germany • Outsourced credibility is very attractive. Create showcases. Confluence movement can be the trusted 3rd party to provide this Gather companies around this and start maturity network • Can we map cargo flows? Many shippers go into Africa but they all organize this individually. OBOR for Africa? Trade lane? Final Report, page 44 Unilever - Ross Plumbley • Tell call with R. Plumbley • Started the call with summary of interviews so far and the main finding. Unilever confirms that it has the same issues and considerations as the others. Keep it practical: - back haul - collaboration - forwarding - less trucks on the road - How to exploit rail? • Namibia and Botswana: proximity to market is low. They have a question about the potential of collaboration. These markets are unexplored in this respect and they don’t know how to tab into this • They like a shared benefit approach • In addition, Unilever would like to push logistics in SA out of its comfort zone and is interested in more innovative concepts (Uber for freight, air BNB for warehousing?) Would very much like to participate • We will meet in June during Sapics and possibly Durban Action: set up meeting for June Peninsula packaging - Encia van Rensburg • Aimed at cost savings – high priority • Doesn’t meet with peers – would be very nice but doesn’t know how to make time for this. Will try to participate in meeting • Has put a lot of effort in optimizing factory and flow of goods • We got a tour through the factory • Would be interested to participate in the project, but depends on het customers like: Fresh Market, Pick n Pay, Shop Rite. • Would like to stay connected to project Sapics - Jenny Froome, cs • Sapics started to provide education for mining industry. Connection to Apics North America provided credibility Sapics is non-for-profit organization, with board of 6 -organize training (not training themselves) - organize conferences - knowledge exchange & community building • Main role: connecting people. • Individual (#500) and company (#40) membership • Database of 10000 • Before next conference in June there is a summit on 2 and 3 June to engage professionals • Sapics would be very interested to have World Bank speaker at conference • Logistics achievers award needs revival. Currently every year same winners; determined by sponsors Final Report, page 45 • Sapics needs resources (money) and hands • Ambition to go into schools • Observation Sapics: SA has made mistake that they think they know better than the Africans. This is one of the reasons that SA develops slower than other African countries (e.g. Wi-Fi is far behind) • Would like help to become better known amongst shippers • We will attend conference in June • Agriculture and Healthcare do many good things in logistics – not yet involved in Sapics • Go speak to Garry Peter of Transnet> Necessity to re-energize SA railways TGF - Jan Tukker cs • 2500 stores; store electricity is main CO2 footprint • Started two projects on cost sharing: o Reuse paper of carton boxes o ICT project to optimize flows: Lama soft Analyses of flows Very enthused about the potential of this project • Are interested to include students • TGF focusses on consolidating flows and business internally. Next step will be inter- company • Two issues that hinder collaboration: o Competitive advantage (not working with competitors) o Competition law • Rail is big issue: Transnet very unreliable and more expensive than road. Also low service • In this market speed is of the essence (design) so rail often too slow • Furniture market would be more suited – but price we got was not right • Durban – J’burg would be good to start with • Containers: SA imports more than export so empty containers is an issue • Sapics: supply chain learning is key. We are (and like) to be in touch with peers But competition law is hindrance • Action: we would like to see stats about port/rail efficiency and to show how successful it can be • CSR issues that matter to TFG (www.tgflimited.co.za): o Stakeholder involvement / license to operate (employee empowerment and social development) o Resource efficiency o Ethics and governance o Community development / assistance • Stock and space is an issue. The faster good scan go to store the better • Online shopping is potential (small but growing). We would like to have 10% online sales • Cost savings is a big driver • Namibia, Botswana and Zambia are supplied from Cape Town. Issue: getting small orders delivered for reasonable cost • Maputo harbour is not deep enough. Id it could accommodate bigger vessles it may be interesting. However cross border is issue as well as other unpredictable issues – this would Final Report, page 46 expose us. Even if Maputo is improved we would be reluctant to use it – too risky • Willing to participate in rail project and talk to Transnet together with other shippers • To be continued – Jan Tukker is contact. AbInbev • Supports the movement • Willing to cooperate with Heineken in the bottle return supply chain • Puts a lot of effort in RTMS: o road safety o tracking o community building o industry standards • Willing to share beste practices • ExCo involvement is needed for specific items like cooperation with Heineken • Going Green is big subject within AbInbev (SABMiller) Awisca - Lebogang Letsoalo • Awisca supports the assignment • Awisca is concerned with empowering women in supply chain management and would like to contribute in order to be much more engaged and involved considering the early stage of development of Awicsa Barlowold - Ian Bird, Rory Sterly • They gave a presentation about Barloworld • They have been involved in road to rail projects in the past, but this didn’t work out well • The have a MoU with Transnet Freight Rail • Positive regarding road to rail and want to be involved • Good idea might be to share the Durban Express and why it failed to learn as much as possible for the Green gateway road to rail challenge Consol Glass - Tom Shaw, Paul Kernaw • Subject of meeting: discuss possibility of bottle cleaning company • There is a 89% return rate of bottles from townships • Most is returned via returnable bottles (Inbev). Also, Consol buys back glass from single trip bottles that is collected by pickers • To have effective return system in place you need breweries with local presence. Otherwise it is not feasible. Heineken has only one central brewery. • Big issue is not the townships but the middle-class families who crush bottles and add them to regular waste (ending up in landfills) All legislation to change this is in place but it is not implements by municipalities • Opportunities Consol would like to participate in o Road to rail Final Report, page 47 o LNG trucks o Pallets o Making use of low grade heat FMO - Willem de boer & Ewout v.d. Molen • Purpose: to get to know each other • Tip: Check out Cool logistics – about cold chain distribution • Connect to Jack Feira old NL Embassy • FMO is interested to participate financially in (start-up) initiatives that may surface in the course of our assignment. We will keep FMO up to date about the development of the assignment and opportunities that present themselves. GLS - Dale Good cs • Founded in 2007 by Dale and his father • Dale worked for Tesco, Cole, Lays and Carrefour • They operate a retail return centre (equipment circulation) for Clicks, Pick n Pay, Shoprite, Massmart • Market wants something to do about pallets – GLS is going to step into this market. Invested R50 mio in 250.00 pallets • Will compete with Chep • Have invested in new pallets with chip in it. Chips will not be used yet but it will be in 5 year times. • GLS is still looking for extra funding to finance to grow in the nr of pallets they need once they are in business. Currently no bank will invest in movable assets. • Interested in possible loan by Worldbank – >16-18% return on investment Argument: pallet company - poverty alleviation: manufacturing of pallets • They need to have more producers/cargo owners on board Would like us to introduce GLS in our network Is interested in Platform of cargo owners. • GLS is also operating a waste recycling plant. • Paper, plactic, possibly cans. Only clean waste. Pick n Pay is biggest customer. Contract until 2028. We visted the waste recyle facility they just opened (R 120 mio investement) McCain - Karl Thorington • McCain is very interested in the assignment. Met with Karl twice. Once at Sapics and once in Johannesburg. • Issues they are involved in: o Cold chain logistics o Export of sweet potatoes via Rail o Bio-mass optimization o Micro distribution Very interested in establishing peer network. May be driving / founding participant. Final Report, page 48 MCLi - Barbara Mommen • WB sponsors setting up a MoU between countries to make use of Maputo corridor • Corruption is still big hindrance for many companies to make use of Maputo corridor • Idea: why not aim to optimize use of rail from J’Burg to the border (instead of across it? • MCLI has resources issues. Needs R 2 mio to attrack personal to do works that is required. Would like to be able to fund 6 weeks studies that add value to supply chain & companies (practical approach) • We will write a short paper on Learning Together • On next trip, we will organize a brainstorm with MCLI • In February 2018, we were invited to be part of the strategic workshop and present our findings Pargo - Lars Veul & Derk Hoekert • Parcel delivery network – 1500 drop off points in shops (like Clicks) • Currently operating business to consumer deliveries, but in the future also consumer to consumer • Are in touch with TGF to work together around on-line shopping ambition of TFG. Pargo would supply delivery network. • Aiming for a network in townships and rural areas • Possible applications o Medication o Distant learning • Pargo has a need for more pick-up points • Pargo is looking for people who would like to run a local ‘pick up point’ in informal settlements Just like flipcard in India – online shop with local pick up point. • Phil Roberts is former Coke employee working as advisor for government on distribution of health products • We visted a Pargo location in Hammerskraal (Pargo drop off point in Bakery: Angels & Cakes). Very succefull but Lars and Derk didn’t go there yet. Peter van As Phatisa - Private Equity Partners • Very experienced FMCG Retail Business Developer with 25 years+ experience in on the African continent • at present Portfolio Manager for various investments • Focus on Micro Distribution of FMCG into townships outside South Africa • Very interested to share his experience and perspectives for the peer network and micro distribution workshops, retail frontiers challenge • Even interesting to ghost write a book about his expertise and Pick ‘n Pay - Paulo Peereboom and Cobys Barnard • 30 mio people are not participating in SA (formal) economy • challenges in logistics SA o service levels low and unreliable Final Report, page 49 o in-balance in transport J’burg – Cae Twown o Maputo has opportunities but cross border is big risk (up to 10days longer) • Pick n Pay is in change from decentralized to centralized Is big operation. Little time left. • Rail is an interesting option • Supply chain maturity is important, but beware: we need to go from level 2 to 3 (not 4 to 5). So be aware of what you offer. • Passenger transport in Cape area (rail) has potential • Waste management is an issue where manufacturers would like to work on together, because it is measurable and there is no competitive disadvantage • Beware: setting up actual collaboration takes a lot of time when you get into the details. You may have too little time to finish it. • Every initiative that is about saving water and energy will gain support easily • Also initiatives to improve BBBEE – that help people from informal to formal economy. Sanec - Mixo Mayimele We made introductions and will get in touch when needed. Shoprite - Reuben Jordaan • Issues -Pallets -Waste -Truck efficiency (60% ) • Difficult to collaborate with retail, but open to collaborate with non-competitors • Interested to investigate night-distribution (the way this is organized in Europe appeals to him). Spar - Kevin O’Brien • Spar supports WB assignment fully (logistics, social issues, environment) Practical implementation is challenge • Spar: whole sale & distribution of food to Spar members Each shop is a member, they pay a fee for promotion and services Membership can be cancelled (30 days) Members a free to buy good from other suppliers Collaboration and services are key within Spar • Spar set up a rural retail centre: to support local farmers with little access to market. Help them to bring goods to market (local for local). A 2nd and 3rd centre will be opened soon. • Spar values development of black entrepreneurs • Kevin is active in retail forum together with Pick n Pay (Suzanne Akkerman), Woolworth, Clicks. Objective: explore opportunities to work together as an industry and address these issues (a/o waste management) • We will participate in meeting of Retail forum on next trip to present our assignment and discuss collaboration, waste management, etc. Final Report, page 50 Transnet - Transnet Executive Board and Mike Fanucchi • General presentation about Transnet organization. They shared their 6-direction strategy (aimed at presence in several sectors within South African region and beyond) • They have Issue with finance WB / IFC • LNG interest • Health care service train is CSR initiative • Road to Rail is big on the agenda and interest in joining forces Transport Forum - Harry van Huyssteen • We are offered the possibility to make use of his network to communicate our endeavours and to connect to companies • Plan 6 months in advance. Small fee required. • How can we make use of this forum? • Do we want that? • Planning: www.transportsig.com Unilever - Ross Plumbley • Everyone looks at optimization from its own perspective. How can we gain real value from a collaborative perspective? • interesting to calculate how many of my truck km are empty quantify the business case • townships have an eco-system of logistics of their own – consisting of small parts working together • Rail is an example that we should drive together and would make a big difference • Performance based vehicles Unilever has safety requirements on trucks (but what about compliance of LSP?) Anderson Logistics in Cape Town invest a lot in trucks • Unilever is in contact with Coca Cola to discuss rural / micro distribution University of Johannesburg – prof. Jacky Walters and Rose Luke • We discussed the possibility to involve studenst / the University in reseach projects that will be defined by companies. These projects will be aimed to do practical research (up to 6 weeks) and the outcome needs to be practical. • Prof Walters is willing to participate in this. However, whether students can actually be made available depends on timing and scope of the projects. It needs to fit in the curriculum planning. • Alternatively contact Talsa – a network of supply chain students (we have been in touch with Talsa on our first trip) • We will stay in touch and check with them as soon as actual projects have been defined. Final Report, page 51 WBCG - Johny Smit • We made introductions and Johny held presentation about Walvisbay Corridor Group • We will organise brainstorm to work on business proposition of WBCG to capitalise on opportunities • February 2018, we will support the African Corridor Management Alliance conference in Morocco with 3-5 business case proposals • On November 23 and 24 2017, we co-host the Namibian Corridor group in R’dam MCLI - Barbara Mommen • We talked about an idea to set up a workshop together with J. Smith of Walvisbay Corridor Group • MCLI has a good relationship with Walvisbaai; Barbara will have a talk to J. Smith about the idea to organize a joint workshop. Some observations o Walvisbaai and MCLI are not competitors, but complementary o We discussed that the workshop may be a good opportunity to get together to investigate joint opportunities and learn from experiences o Barbara will think about people/companies to possibly include in this workshop o Beware: people we invite may say they come, but will not turn up (a pattern often seen in SA) We discussed to not make the workshop too big in number of participants; instead go for quality; take a first step and take it from there o 2nd or 3rd week of October may be good timing • Upate on MoU The MoU between 3 governments is being worked on - but still needs some work. The MoU also contains an option for structural financing – but to be effective in that respect it needs to be a MoA(greement). The MoU will be delivered to the World Bank. Confluence offered to support the MoU by reading the final draft. Issue: Many companies using the corridor have benefited from the few that have paid for the use. This needs to be addressed with the governments involved. • Beira – is not a competitor to Maputo as it handles other cargo (mainly containers) There is an opening for MCLI to offer services to Beira in their corridor development ambition. • Via port of Rotterdam we have an opportunity to connect to Dutch ambassador in Mozambique – Barbara knows of her but has not met with her yet. • Confluence will draft an outline for a workshop program and send this to Barbara to discuss / enrich WBCG – Johny Smith • WBCG started 17 years ago Wants to provide gateway into Africa – corridors to accelerate growth They want to be a boutique port (for specific items). Not a large port like Amsterdam or Rotterdam Final Report, page 52 • One of success factors in the development of the corridor is the strength of Walvisbay harbour See sheet presentation (email Johny) for specifics about Walvisbay harbour • Connection to J’burg is not yet operational via rail (trans Kalahari rail way is not finished) Transport goes via road. • Connections: Sao Paulo - Walvisbay: 7 days + 2 days via road to J’burg China W-bay: 27 days • WBCG have a local community perspective. They feel a strong connection to the local communities they serve (all the way from Namibia to Zambia). That is why they started a number of wellness programs for local community • Johny is also involved in Africa Corridor management alliance Vision: from transport corridors to economic corridors See strategic paper of ACMA for more details Critical for success is to find a champion like Walvis Bay. Success can’t just be repeated copy/paste. Each endeavour requires own unique approach – tailored to situation • Will meet with Johny in Rotterdam in November 2017 WFS - Gregory Camm & Chantel Burger (Windhoek, 17-10-2017) • Road to Rail challenge, in particular into neighboring countries. With trucks it is difficult to get the volumes • There is an inbalance: either north bound and no back loads • finance of this inbalance • SA logistics is more streamlined • Namibie has approx. only 3 service providers • Customs still very administrative and manual • We need the infrastructur, Then the IT, then shift from road to rail • All LSP’s work together on the Walvis Bay Corridor, there is competition between the agents, but we do need to work together Marketing the Corridor is important • Namibia is very conservative in the IT development We have developed a “Mutual space platform” (by Four Wings, local company), but it is not utilized. Would be perfectly for the further development Telcom costs and IT costs are high • Namibia: 1991 independent • Potential Namibia: more stable, less corrupt, spacious. Why do big international companies not come here? • WFS: Very capable of running all kinds of good flows even critical mining and drilling industry We have to offer a broad service line because of the size • Manica did a cost comparison: prices are 15 % higher we have imbalance but the total cost of the supply chain in transit time might be (much) lower. In addition: no strikes, no social insecurities, stable, sound • Walvisbay proposition: better return flows, links to South America, triangel Africa, South America, Europe Windhoek has a shuttle service on rail Final Report, page 53 WFF – Louse Naude • In conversations with WWF we discussed aim of the project: (1) the potential of coupling three independent corridors by rail and by short sea along the Walvisbay-Durban-Maputo, and their expressed interest to explore closer cooperation (2) explicit cooperation with a key player who has already successfully set up township micro distribution in Kenya and Tanzania, and exploring how this can be started in SA (3) interest of an investor in waste recovery and recycling. • WWF is working on optimizing transport and minimising and recycling plastics, largely because of the impact on oceans and marine life. So, interested in all topics. Will discuss way to work together during next visit. Copia – Peter van As • Utilization is determined by users. Involve them in investment decisions • Copia has now 4000 sales point in Africa (not SA) • Rural distribution is key for development of people 70 – 80 % of peoplein Africa don’t live in cities Rural distribution is now done by local informal corridors. Typical African. • That is why development of industrial corridors and connecting them to “informal corridors” is crucial • Copia is particularly focussed on the needs of people. Based on the idea of former trading posts • Small connection points that support local entrepreneurs Empowerment of SME’s • Issue for Copia: o return loads o deployment of the idea • During the discussion, the idea came up to include local produce into the flow. To allow distribution from local places into the main hubs IN addition to use the Copia network to clean rural areas from: plastic, batteries and other waste by developing a reverse flow of waste. Amon others GLS is interested in processing this (will connect them) • Next steps o Set up meeting in NL with Ton van Asseldonk about emergent logistics. Willem of Copia will join (Willem work for Ahold and did “Albert-service”) o Peter will join visit to US (UNHDP, WB, etc) in March o Start a Fund to finance these Corridor-rural logistics networks o Connect Dale and Peter o Need for capacity and competence development: set up learning program to develop people and prepare them for Copia model. A start has been made by Copia but this needs to grow in order to be able to deploy the concept RTMS workshop – board RTMS • Currently 12,500 vehicles part of RTMS • Website / communication: domain name secured Final Report, page 54 • Province connections to get PBS vehicles on the road contacted law enforcement – is promising. It changes perception of government officials • Reduction of accidents is key focus for provinces • TASA – connected to them and they explained concept of RTMS (road freight association) This opens whole window of transporters that they didn’t get to yet shift: TASA now understand that RTMS is also for smaller companies • RTMS will stay independent (was approached to merge) But they need independence to stay credible • Suggestion: add name and shaming to withdrawal of certificate • New focus: involve emergent truckers and to reconnect to RTMC Re-look at strategy irt government: aim at more senior government level • Confluence: suggests 3 focus areas o Main corridors: road to rail development potential: only green vehicles allowed on corridors Paul: trans Kalahari corridor workshop – a lot of interest (but this has been the case for many years; it doesn’t move forward) idea: can you open local office in Namibia and add own flavour – find strategic partner o Presenting RTMS as hygiene factor / safety of corridors o Mini bus development (environment, safe, …) • Idea: establish RTMS offices in Namibia, Botswana, Zambia along all important corridors. This requires money and adaption of strategy, but benefits to region are huge • Lack of law enforcement is big issue in deployment of road safety in 3rd world countries • Green & safe corridors resonates E.g. -> criterium: only PBS vehicles transport Copper from Zambia to Durban • RTMS – organisation needs to change. Need professional staff / full time work. For that they need resources • Focus on shippers to grow your program – they are key stake holders In SA this is starting; but not yet across border • Elevate RTMS from local SA company, to a SADC company to increase exposure - RTMS board will have meeting with big shippers (SAB, CEPI) to execute this. GLS - Dale Good • Not able to connect to Heineken yet, please help. Idem PepsiCo – Herman Muller • Any link that leads to Higher profit for selling plastic is welcome Non-interested in plastic business and getting into plastic as such • Wants to be Centre point of reverse logistics • Community service means providing jobs For people in the local community • Interested in o Cans PET o Plastic o Paper o Batteries Final Report, page 55 • Key issue: how to collect against low cost and low pollution • Would very much like to meet Peter van As Samsung SDS - Enosh Perumal • Sds works to get into fresh market • SDS has interest in maturity to grow its business - in classic situation they can’t compete with traditional 3 PL • Edwin Altena (in Netherlands) Help Samsung to really get focus on third party clients • Help SDS become the enabler of new logitics operations, and corridors logistic. SA potentially is experimenting area • Enosh is very open to this • Development of maturity takes time - they acknowledge that • SDS : Do trial about tracking with Transnet • E commerce has their big interest Massmart – Richard Inskip / Mark Mountjoy • Just opened new store: Riversand macro • Is meeting With Herman Muller (Pepsico) about organizing inbound transport for them Idem Heineken • Topics of special interest: - Empty kilometres - Waste & pallets - Road to rail: they will talk with Mike Fanucchi about rail - RTMS • Interested in Rural / micro distribution Investing in this themselves - dont want to share much yet • Massmart requires 3PL for Macro to be RTMS ISO is competing With RTMS-> Road Freight Association is advocating this, Why? Issue: ISO is more complex They Would like us to mediate With road Freight Association • PBS - interested to enter Eastern cape Because of low income, they need low price (lower log cost) Need to use larger trucks-PBS Want to grow business in E-cape. Need: road qualification and driver qual. to allow PBS in that area. We will check with RTMS about this • Creating a break With Transnet would be very desirable for the country Transnet needs to create flexibility Idea of network of Ports resonates a lot! In the past legislation was there that rail was obligatory • African corridors initiative: Interested to ship to Ghana Port time is currently the bottleneck • Willing to support with World Bank visit in March Final Report, page 56 MCLI – B. Mommen • Barbara resonates a lot with the idea to build a network of ports all connected via rail to deal with container flows and allow the easy shift from port to port (in case of damage or other delays) Start with Durban, then MCLI and WBCG • Start with building container shuttle service from Durban Next to that optimize road via RTMS Over time only RTMS certified vehicles are allowed. Early start could be made with respect to terminal access • Maputo: o Rail is not existent o Road delays at border o Agro flow has potential but goes to Durban at present because of cost in Maputo But due to travel time they lose crop • Barbara has now data about obstacles in corridor • Lack of manpower is problem for MCLI • Wants to join community with Durban and WBCG to make these corridors work First step is to increase container transport via rail in particular for MCLI. Will participate in group that will build funding (UNDP, AfDB) TGF - Jan Tukker • ConFluence gave an update on the progress of the assignment. • TGF is very interested in Maputo corridor. They would like to know the following details: o What are the specifics of the harbour (capacity, depth, services, speed in handling containers)? o What are the goods being imported and which cargo owners and shipping lines are involved already? o What are (legal) requirements if goods are imported via Mozambique into South Africa? o What doe Mozambique do to attract shipping lines? o Average transit time (Maputo – Johannesburg) • 60% of TGF market is situated in Johannesburg 10% of Market in Durban area TGF has net inflow of containers • The cost of shipping from Durban to Johannesburg is still a bottleneck for them • They have a lot of empty containers in Johannesburg that they would like to make use of for return flows. They would like to have intel on return flows from Johannesburg. They are willing to set up arrangements with others to share cost, as the return trip of the empty containers is already paid for. • They currently leave optimizing flows to their LSP. So, they are not in contact with other shippers (like Unilever) themselves • Revers logistics is not a big issues. They only deal with customer complaints / products send back. Their packaging flows (mostly carton) have already been optimized. Their carton packages are designed in a way that they can be reused. They don’t use pallets. Final Report, page 57 • Is Transnet open to discuss sharing the infrastructure with private operators? • They would like to have a concrete service being offered by Transnet (Durban – Johannesburg) They would be willing to experiment when such a service is offered. Before they commit to large amounts of containers they need a reliable service (their reputation and in time delivery requirements are leading for them) • TGF is very interested to become part of corridor community. We will connect them to Transnet to discuss this. Unilever – Ross Plumbley • Update with Unilever about the project • Container transport via rail is still on top of the list • We connected Ross to Tim Keith of Durban Port • Unilever is willing to become part of the road to rail community (Durban – J’Burg) and willing to make containers available for pilots to test the rail service Pargo – Lars Veuls, Derk Hoekert • Met with Pargo again to give update eon project and discuss feasibility and their participation • Pargo, a SA start-up based in Cape Town with over 2500 township based micro-dispatch points for retail package handling • They are willing to participate in rural / micro distribution project • Pargo will start with exploring options to link into micro-extraction to balance their flows. WWF – Louise Naude • Met with WWF to present project and discuss participation • WWF agreed to be the third pair of independent eyes for the project and to co-sponsor in its public-private stakeholder network. • WWF’s involvement is to pervade all operations envisaged from a resilience/climate change perspective. Dutch Embassy, Khoa Bui, Deidre Batchelor • Presented update on the WB project • Embassy supports the approach and is happy about results and hands on approach of the project • Discussed projects that the embassy is supporting o Flying Swans: development of logistics dry port in north of SA (project lead Mercator), financed by a.o. FMO, Port of Rotterdam o Transport of health care products via cold chain o Feasibility study by Stig consult (Onno Roelofs) for Transnet to build a hub outside Durban • Khoa Bui will put us in contact with o Philips o Mercator o Stig Final Report, page 58 ZZ2 – Japie Burger • Visit of 3 hours to ZZ2 tomatoes. Japie showed a film and 2 presentations about logistics operation of ZZ2 and about the company philosophy of an open living systems approach See also company handout • ZZ2 developed a farming concept for sustainable farming, called Natuur boerderij • ZZ2 provides 40% of all tomatoes in SA. Besides they produce a.o. onions, advocados No container transport to date. Tomatoes do not qualify for that. Oranges and onions would. • Won Platinum logistics achievers award in 2017 RTMS integrated in company • Japie would be very interested to participate in building a road corridor on the basis of RTMS LEDA – Limpopo Economic Development Agency & Board • Participated in meeting of LEDA • Aimed at economic development of Limpopo region • Looking for several investments to provide basic infrastructure (water, roads, energy) They consider Coal-fuelled electricity plant • However, money is a big challenge. Chinese are potential partners • Challenges for economic development / worries: o Amount of water available o Preserve nature and natural resources o Skills of workforce o Economic crisis makes appetite of investors disappear o National government has no money • See also slide pack of LEDO • Investment portfolio is traditional in our view (ConFluence) • We presented the following alternative o In short term money will stay a challenge o Instead of investment in heavy industry, why not develop parallel track that focuses on options that require less money now. Move within the restraints: § Develop accessibility of the region; dry port, road to rail (is already available), develop road safety § Work with local renewable energy sources: bio mass, solar § Develop water availability • All of these have great potential for job increase • Ideas resonate with the board • Conversation will be continued on next visit Barloworld - Adrian van Tonder • Responsible for technical condition of 1200 trucks • 300 – 400 trucks running up the Durban – Zambia corridor • Jam at border post takes up a lot of time Final Report, page 59 • Big issue is that ‘abnormal vehicles’ that transport heavy vehicles into Zambia are not allowed (SA legislation) to carry any other load back into SA. Although they could (Copper, other minerals, etc). S0 now they go back empty. Building a dry port just before the SA border would allow them to carry a load at least ¾ of the distance. • Container market SA: 99% is imported. All other goods are moved locally, without containers Barloworld does not do containers • Only small percentage is owner driver in SA. Container market has the smallest margins. That is why quality of those trucks is so poor • Barloworld has MoU that allows them to operate trains • Apply RTMS standard also to rail: both quality of rail service as criteria of entrance to terminals • To boost rail service a change is needed in Transnet o Mindset o Skilled operators, managers, engineers have all left o Little passion for the job • Shippers can impact strategic change within Transnet • Quality of vehicles in Zambia and ZImbawe is poor. Rates are 30 – 40% lower. SA trucks can not compete. Rail however could compete • Barloworld is in the middle of a change process. In the course of January new strategy will be communicated. • Concept that has big potential is common service provider 1 provider for multiple shippers. In particular in the building industry this has not been possible yet. Companies want exclusive LSP • Barloworld may be interested to play a crucial role in corridor development, as all its vehicles are at RTMS standards • Incentives for RTMS certified corridor could be: o Low insurance and lease rates o Clearing is uniformed, so that all port and other points of access are the same. Would save much time because now trucks need to be cleared often along the corridor -> self regulating network of entrance (Duban – Zambia) With tag system in place this could be done – saves many stops at weight bridges Tags only on RTMS vehicles • Road Freight association Used to be spokes organisation for trucking industry However, members are dropping – 80% of members are now suppliers to truck industry RFA has been doing assignments for government and has lost independency Is now advocating ISO because government wants to introduce ISO • New group that is coming up: small emergent truckers association RTMS embraces them Would be good to include them in corridor group 0f 350.000 trucks in SA, only 10% is RFA • Veterans is an important group in SA. Adrian was surprised to hear they were interested in logistics If SA government had listened to veterans in the past the country would probably be in a better place Final Report, page 60 • There is much potential in developing first/last mile logistics and do long haul via rail Smaller trucks are needed and that means lower capital requirements And many drivers want to be able to be at home at the end of the day • The operators that are driving containers are small companies (4/5 trucks) • Massmart wants to move to East Cape with PBS vehicles. Is not allowed yet. Adrian expects that this is changing and that PBS will be allowed in more area’s Recently RTMS has delivered report to the government about positivereults of RTMS and large capital investments of business into PBS (800 mio R). They expect this will create opening. A:-> connect Adrian to Richard • Create corridor association on the basis of open living systems approach: RTMS fits into this very well as one of the providers • Adrian is very interested to play active role in Development of Corridor Association Transnet - Mike Fanucchi • Continuation of earlier meetings in June and October • Discussed status. Transnet is still focussed on improving rail service. • Terminals are crucial to optimize flows. They control a corridor. Could play important role to improve quality of vehicles on the road side of the corridor • Presented our approach: o Corridor development o Rail service optimization o Micro distribution & Reverse logistics • Transnet resonates with this approach. May be able to play a part in reverse logistics of waste from city waste dumps (transport via rail at night) • Community of shipper that supports development of rail service (in particular Durban - J’Burg is attractive and welcome). Transnet is willing to set up meeting with group of shippers to present the position an approach to shippers and discuss this with them. We will facilitate to set this up. • To be continued next visit. Final Report, page 61 Appendix 4. The essence of community development The essence of developing communities is to release shared compassion of people for what they treasure most. This requires -first and above all- a safe secure and caring environment where joint energies can freely be expressed, nurtured to awareness and fostered to a reality that befits peoples’ sense of purpose, value and contribution. In our experience 7 conditions need to be taken into account to build a successful community. 1. Development The word ‘develop’ in many languages implies ‘unwinding’ of something valuable that is inside already. That is where al change begins: the assumption that there is something valuable to be developed when the people involved recognize what’s inside for them, in themselves. What they really care for. 2. Community What makes a community is often something that fosters shared interest, shared experience and shared values that connect people to recognize and acknowledge each other’s being. Communities tend to fall apart where either the trust of the value or the vision behind what the community is for is not shared anymore. Yet a potential community may not recognize its reason(s) for existence. The art of community development lies in creating space. A safe space, with secure perimeters and people who recognize the potential for caring and sharing, whether it is their energies, their ideas or their perspectives. And these are often very subtle forces at work, only recognized by the people that carry the community and their mutual ties. For outsiders this is rather difficult to judge. So, they can never steer, only facilitate. 3. Resilience Resilience in itself embodies silent reliance on people’s drive, compassion and care for what they carry together. These are the only factors that will make any co-operation viable and capable of co- evolution within a continuously changing framework. This is all about community learning. The ability to learn together grows with acting on every challenge. The ability to be vulnerable is the key awareness element of resilient communities and a crucial factor in resilient community development. 4. Emergence Emergence assumes that people move according to their best interests, and where these interests flow together into commonality patterns they create a strong bias towards shared value, trust and commitment. Emergence is about identifying energies moving together, recognizing common directions and stabilizing the resulting flow. Final Report, page 62 We all harbor our views, our own issues perspectives and strategies. Sharing them within a safe environment creates a non-zero-sum game: communities grow stronger from exchanging ideas and the intentions behind them. 5. Compassion Whatever we share the reasons why we treasure it are diverse and varied. Unless we manage to create an inclusive environment, our diversity may steer us apart, even when we are prepared to share. Compassion is an unexpected strong ally in this process. A deep understanding and wish to appreciate each other’s motives and drives, perspectives and strategies, values and desires. It does not require rocket science to realize that compassion requires a very different ‘mindset’ for a viable business case: it requires adaptivity, creativity and learning in motion. It selects people in various roles on very different criteria like on relational rather than transactional skills, on sensing rather than judging, on feeling rather than thinking. And that is unusual, but not unheard of. 6. Sense Resilient community development is virtually impossible without realization of shared ‘sense’. And that is precisely where analysis and sensing may divert. Analysis suggests an objectivity, which is rarely there, whereas sensing requires a continuous and thorough look at assumptions -explicit and implicit- being made that might cloud people’s openness to their own and each other’s feeling of good sense. Yet analysis may be very powerful when siding with respectful attention to sense-making alongside. 7. Realization How often do we realize that our paths went far out from what we aimed for originally when we set out on our travel? Yet often we do not regret this as what emerged was felt to be far more of perceived value than we had in mind. Empowering communities is always about creative tension, joint learning and adaptation to changing requirements. And developing resilient communities is learning in motion beyond emerging realities. Final Report, page 63 Appendix 5 Ports in SA, Namibia & Maputo: container capacity & actual usage Maputo Container Terminal capacity Capacity Completed Dec 2017 end 2019 150.000 350.000 615.000 Handled Ca 110.000 (2009) 320 truck per day Maputo corridor (+/-2013) Port to J’Burg The new port access road that it carries heavy road traffic by-passing downtown Maputo public/city traffic and connects the harbour direct with the M4 Highway running 600km westwards through the industrial and mining heartlands of South Africa. In the future (2015 - 2030) to ensure better logistics movement, capacity of 500 trucks per day will be planned vs. current handling of 320 trucks per day. Rail: to date no containers are transported via rail to J’burg (1 trial completed) source: http://www.safiri.co.za/lpfdb/maritime-port-of-maputo.html Barbara Mommen Walvis Bay Capacity 350 – 450.000 TEU throughput capacity per year (annual report 2015) Containers handled 2012 334,410 TEU (66.190 landend; 50,634 shipped; 217.568 transshipped) – (source: port Website) Container terminal capacity (South Africa) (South African port capacity and utilisation report 2015) Design capacity Installed capacity Latent capacity TEU handled 2014 (TEUs per annum) (TEUs per annum) Durban 3.020.000 3.020.000 2.660.146 East London 93.000 53.390 43% 41.080 Port Elizabeth 600.000 325.211 44% 291.233 Ngqura 2.800.000 491.442 75% 636.663 (2015) Cape Town 1.500.000 900.000 40% 907.796 8.013.000 4.790.043 49% Final Report, page 64