Apr 08, 2011
Temporary-power group forecasts strong Africa growthBack
Cape Town|Construction|DURBAN|London|Natal|Port|Port Elizabeth|Africa|Aggreko|Aggreko South Africa|Cable|Design|Engines|Hydropower|Industrial|Mining|Ports|PROJECT|Projects|Rental|Africa|Angola|Botswana|Eritrea|Kenya|Mozambique|Namibia|Senegal|South Africa|Uganda|Durban Depot|South African Depot|Energy|Equipment|Manufacturing|Oil And Gas|Power Generating Equipment|Product|Rental Power And Cooling Equipment|Service|Eastern Cape|Richards Bay|Western Cape|Infrastructure|James Shepherd|Martin Foster|Power|Rupert Soames|Cable|Operations|Eastern Cape|East Africa|World Cup
© Reuse this
Following the establishment of Aggreko’s first permanent service centre in Midrand, Gauteng, in 2009, the Durban depot – situated in the Riverside business park – will meet demand for rental power and temperature control in the KwaZulu-Natal area.
The company invested some R87-million in South African operations in the past 18 months.
Aggreko South & East Africa MD James Shepherd adds that the company plans to open two further facilities in South Africa in the next 18 months – one in Port Elizabeth, in the Eastern Cape, and one in Cape Town, in the Western Cape.
All these facilities will be staffed with local technical, sales and managerial staff. The company aims to employ over 60 locals by 2015.
The Durban depot will largely serve the shipping and manufacturing sectors but will also bring Aggreko’s turnkey rental offering to the oil and gas, mining, construction and events industries.
“It made absolute sense to support our shipping clients – last year, some 26% of our revenues came from Durban, predomi- nantly from the shipping industry,” adds Shepherd.
“The new facility is ideally located to service the ports and shipping industry in Durban and Richards Bay, and the numerous industrial areas of the greater KwaZulu-Natal.
“We will continue to ensure that we employ and train locally as much as possible, as we are committed to being a part of South Africa’s future growth and development,” says Aggreko South Africa country manager Martin Foster.
The company will also boost other local industries as it also procures locally for some of the company’s requirements. Chillers are currently procured locally and modified to the company’s speci- fications, and low-voltage cable and spare parts for engines are also supplied by local suppliers.
Aggreko CEO Rupert Soames inaugurated the service centre in Durban, with about 100 guests touring the facility.
“When bad things happen, we can react very quickly. And when good things happen, such as infrastructure projects, we react just as quickly,” quipped Soames, noting that the company could rent power generating equipment for an event as small as a weekend party, or something as large as utility-scale generating capacity.
Shepherd boasts that, with the modular design of the equipment, the company was recently able to set up 170 MW of generating power in 71 days.
Currently, Aggreko has some 1,8 GW of power on rent in Africa, some of the larger projects being 310 MW, in Angola, and 290 MW, in Kenya. In Senegal and Uganda, the company has 100 MW projects, and, in Eritrea, a 30 MW temporary power supply with a mine.
In Southern Africa, Aggreko sees a lot of opportunity in Mozambique, especially in the Tete area, with companies like Vale. Agreko’s business in South Africa is already servicing projects in Namibia, Botswana, and Mozambique.
The business needs to be fluid as it is an emergency power business and often needs to react to situations, such as droughts in countries which rely on hydropower, or conflicts and natural disasters in areas of operation, or regions which experience strong economic growth. Shepherd notes that the modular design enables quick assembly or dismantling of units, and the global networks that the company operates in allow for units to be moved to wherever they are needed.
Many of the countries in the African market are experiencing strong gross domestic product growth and are starting to see the negative effects when they do not have power. Regardless of fuel price fluctuations, “the cost of not having power far outweighs the cost of paying for power”, reiterates Shepherd.
World Cup Legacy
The joint venture ensured that there was equipment supplying power to the ten stadiums, the FIFA headquarters and the international broadcast centre, which entailed the installation of some 300 km of cable and 30 MW of generating capacity.
The World Cup project was logisti- cally complex in that it relied on more distributed power than the average single site project.
Aggreko will also be supplying power for the 2012 Olympic Games, in London, and previously supplied some 85 MW of power for the Beijing Olympics.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Other Electricity News
Updated 2 hours 25 minutes ago Commenting in his capacity as chairperson of the Presidential Infrastructure Championing Initiative (PICI), President Jacob Zuma this week provided an update on the progress of several cross-border and regional infastructure projects championed by the heads-of-State...
Updated 4 hours ago Gauteng Premier David Makhura has promised to outline a comprehensive energy plan in his upcoming State of the Province address, acknowledging that without direct interventions to bolster security of electricity supply the province’s industrialisation vision could be...
Updated 7 hours ago Days of rolling blackouts this week have blighted South African society and business, and they face an increasing number of outages in years to come. But the alternative, a grid collapse, could be catastrophic. Bordered by tiny, war-scarred or impoverished states...
Updated 5 minutes ago Finance Minister Nhlanhla Nene has assured that loss-making national carrier South African Airlines (SAA) will not receive another bailout from government, noting that the most recent R6.4-billion government guarantee had only been provided in support of an intensive...
Updated 39 minutes ago South Africa's cumulative trade deficit was R95.3-billion in 2014, the South African Revenue Service (Sars) said on Friday. In 2013, it was R71.4-billion, Sars said in a statement.
Updated 1 hour 25 minutes ago Certain regulatory approvals remain outstanding in Telkom’s proposed R2.67-billion takeover of JSE-listed Business Connexion (BCX), the parties said in an update to shareholders on Friday. BCX noted in the statement that the Competition Authority of Botswana had...
Recent Research Reports
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
Defence 2014: A review of South Africa's defence industry (PDF Report)
Creamer Media’s Defence 2014 report examines South Africa’s defence industry, with particular focus on the key participants in the sector, the innovations that have come out of the sector, local and export demand, South Africa’s controversial multibillion-rand...
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
This Week's Magazine
The international Square Kilometre Array (SKA) radio telescope – which is to be jointly hosted by South Africa and Australia with, later, outstations in other countries – may not yet exist, but international scientific working groups are already deciding what...
A free Web-based solar power plant capacity-planning tool offers project planners and developers, as well as governments, a means to assess the solar energy potential of thin-film solar PV power over an area of land. The tool was developed by thin-film solar...
As yet, no specific methodology, timeline or costs have been finalised to remedy the water ingress, excessive to contractual specifications, into the Gautrain tunnel between emergency shaft two (E2) and Park Station, says Bombela Concession Company technical and...
The “seriously disruptive” electricity outages in South Africa have cost packaging group Astrapak more than R2-million in “irrecoverable downtime costs”, the company said on Monday, adding that the power cuts were negating some of the benefit of energy saving...
Bakkies and more affordable cars dominated South Africa’s new vehicle market in 2014. Unaudited data from the Department of Trade and Industry (DTI) shows that South Africa’s most popular vehicle in 2014 was the Toyota Hilux, selling 37 562 units.