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Financial highlights and results
Our Group in brief
Consolidated segmental analysis
Performance at a glance
External appraisals
Global footprint
Directorate►
Chairman’s statement
Chief executive’s report
Financial director’s report
Review of operations►
Summarised sustainability report
Corporate governance
Financial statements
Shareholders
Management directory
Shareholders’ diary
Administration
Glossary
AGM notice and proxy
 
Review of operations – Bidfreight  continued
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Training
Training investments continue to rise and reached R18,4 million, up 51,3% on 2006. Workplace safety remains the major focus area for our trainers. Increased investment is necessary to guard against any increase in accident rates in view of high capacity utilisation and the pressure of constantly maintaining high throughput. In some operations we have used internationally respected safety consultants to help us develop a world-class safety strategy.

Technical training and reinforcement of on-the-job competence are areas of strength at Bidfreight. Increasingly, we see the need to support training with personal development to foster higher levels of talent retention.
 
Black economic empowerment
We continue to secure improvements at all business units across all pillars of the group’s BEE scorecard. BEE procurement in the year amounted to R547,5 million.

To prepare promising candidates for further promotion, skills transfer has to be followed by a period of practical experience in positions of growing responsibility. We continue to focus on these measures as we need an assured supply of experienced candidates for senior positions if we are to meet our growth objectives.
 
Corporate social investment
The CSI commitment was R1,6 million. Focus areas are health, education and community upliftment. Community interaction includes long-term efforts to ensure our businesses operate as good neighbours by reducing waste and respecting all environmental legislation.
 
Innovation
Cargo handling efficiency is a key area of innovation. In business units focused on sea-freight, reduction of ship-days on the quay is an area where we have achieved significant successes.

Installation of SABT’s R45 million ship unloader has brought phase two of the company’s terminal modernisation programme to a successful conclusion. The ship unloader can handle 800 tons of free-flowing cargo an hour. Application of this technology will more than halve the average berth occupancy per vessel at the SABT terminal on Maydon Wharf.

Commissioning of the unloader is an example of proactive innovation as the full benefit of its huge capacity will only be felt when fully laden Panamax vessels can be unloaded directly at Maydon Wharf. For this to happen, the Port of Durban has to deepen the Maydon Wharf berths.

Safcor Panalpina’s airfreight operations achieved a succession of throughput records following the completion of phase one of its expansion programme at OR Tambo International Airport (Johannesburg). Advanced security systems were built into the design specification, improving efficiencies and driving continued growth in market share in the area of high-tech, high-value imports.
 
New investment
Approximately R100 million was invested in refurbishing existing facilities and a further R130 million was committed to new infrastructure. In several instances further investment awaits the conclusion of lease agreements or progress on infrastructure projects by state agencies.

Phase two of Safcor Panalpina’s expansion programme at ORTA is nearing completion and will add a further 10 000m2 to warehouse capacity. These new facilities will go into operation early in the new financial year and represent an investment of R78,6 million.
 
Challenges
The principal operational challenges relate to capacity constraints and congestion. We will continue to cooperate in all initiatives to expand facilities and achieve improved efficiency at South Africa’s harbours and airports.

Skills shortages are another concern as experience has shown that constantly increased training budgets provide only a partial solution. There is no substitute for time on the job and practical experience.

HIV/Aids was identified some time ago as a major challenge. We have made good progress in the integration of HIV/Aids education and voluntary counselling and testing into wide-ranging wellness programmes, while antiretroviral treatment is provided at many of our in-house clinics. These efforts have been stepped up and two new clinics have opened.
 
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