BLACK ECONOMIC EMPOWERMENT

With regard to skills development and capacity building, Gautrain’s Socio-Economic Development objectives firstly include the important aspect of broad-based black economic empowerment. Secondly, SED objectives also address aspects such as the development of small, medium and micro enterprises (SMMEs), the sustainable development of underprivileged communities and the maximisation of local content.

Black economic empowerment highlights equity participation by black persons and black women in the project partner entities created for the Gautrain project. It also includes the procurement of services and materials from Black Empowerment Entities (BEEs) sub-contracting of service delivery to BEEs and the establishment of new BEEs.

Examples include:

Inkonjane Civils

Inkonjane Civil Works is an emerging engineering and construction group, offering diverse services.. It is set up to address a need for multi-function services in communities on behalf of the Government Poverty alleviation strategy. Inkonjane Civil Works commits itself to the pursuit of excellence with affirmative action.

Inkonjane Civils Management consists of a black woman with five years experience in Business and Project Management holding 40% shareholding. The balance of shares 60% is owned by a Black Male Civil Engineer with twenty years of experience in General and Civil Construction.

Inkonjane Civil Work provides interior and exterior residential and commercial constructional services. For Gautrain, Inkonjane Civils has been involved in the relocation of telephone lines and other civil construction works.

Kgwedihlaba Reinforcing

Managing Director Charles Mokoena started Kgwedihlaba Reinforcing in 2005. This BEE company supplies Gautrain with steel fixing at two construction sites, namely at Linbro Junction and at the U-Sections in Centurion. Kgwedihlaba Reinforcing has employed nearly 50 people in order to complete the steel fixing contract for Gautrain. Mokoena says that he is confident that new business opportunities will arise as a result of his contract with Gautrain.

Mametse Contractors

Mametse Contractors is a civil engineering company specialising in concrete structures such as bridges, culverts, reservoirs and canals. Their Gautrain contract involves the construction of bridges. As a result, Mametse has expanded its business by employing 55 more people and acquiring more machinery according to project manager Martin Mametse Mashalane.

Isithimela Rail Services (Pty) Ltd

Isithimela is subcontracted by Bombela to be responsible for track laying. Isithimela was forged out of a partnership between transport company, Bombardier Transportation UK Limited, and local BEE company, Strategic Partners Group (SPG). Both hold a 50% shareholding in Isithimela. Within the Gautrain framework, Isithimela Rail Services satisfy the SED objectives of the development of BEEs, the creation of new BEEs and the development of SMMEs.

Under this partnership, Isithimela has been subcontracted to execute the trackwork aspects of the Gautrain project for a contract value estimated at approximately R800 million. It is also intended that the company will undertake the track maintenance on the Gautrain during the 15-year concession operational period.

Over 230 jobs have been created by Isithimela since its inception, with a vast majority of the workforce being locally employed. In order to build capacity and know-how, Bombardier Transportation UK has seconded specialised expatriate staff and management to Isithimela. Their task is to transfer their expert knowledge, skills and technology to the locally employed staff complement who are intended to manage the company into the future

Induna Tippers

Strategic Partners Group Investment and Operations (SPGIO) – the Business development arm of SPG has entered into an empowerment initiative and joint venture with one of the leading players in the transport industry, Unitrans Supply Chain Solutions. The venture, which is called Induna Tippers, began operating in July 2007 and transports material excavated during the construction phase of the Gautrain project. Within the Gautrain framework, Induna Tippers satisfies the SED objectives of the development of BEEs, the creation of new BEEs and the development of SMMEs.

Induna Tippers has created approximately 95 employment opportunities, a 12-member management team, six administration staff and 77 drivers. There are 35 tipper trucks currently in operation on various Gautrain sites.

These resources are supported by a sound business plan to actively grow the company over the next two years within the Gautrain Project, and to develop a sustainable market base outside of the Project.

The 50/50 partnership is structured in such a way that Unitrans will be responsible for managing the business and providing much needed skills to operate and enable growth. SPGIO, with its expertise in the civil construction and engineering sectors, will play a logistical and operational role in recruiting and deploying the human resources required to deliver on Induna’s responsibilities for Gautrain. SPGIO also directs the business through its participation on the Induna Board, and manages the relationship with the client, Bombela Civils Joint Venture (BCJV).