Apr 08, 2011
Temporary-power group forecasts strong Africa growthBack
Construction|Port|Africa|Botswana|Business|Cable|Design|Engines|Gas|Hydropower|Industrial|Installation|Mining|Modular|Namibia|Oil-and-gas|Ports|Power|PROJECT|Projects|Rental|Africa|Angola|Kenya|Energy|Equipment|Manufacturing|Oil And Gas|Product|Service|Infrastructure|Cable|Operations
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
Creamer Media Senior Deputy Editor
To subscribe email firstname.lastname@example.org or click here
To advertise email email@example.com or click here
Other Electricity News
Significant energy savings can be achieved by replacing existing oversized air compressors with correctly sized units that use power more efficiently, says compressed air products distributor Goscor.
Recent Research Reports
Automotive 2016: A review of South Africa's automotive sector (PDF Report)
Creamer Media’s Automotive 2016 Report provides an overview of South Africa’s automotive industry over the past 12 months. The report provides insight into local demand and production, vehicle imports and exports, investment and competitiveness in the sector, as well...
Energy Roundup – April 2016 (PDF Report)
The April 2016 roundup covers activities across South Africa for March 2016 and includes details of a North Gauteng High Court Judge’s dismissal of a court application to postpone the 9.4% electricity tariff increase, which the National Energy Regulator of South...
Electricity 2016: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2016 report provides an overview of South Africa’s electricity sector, focusing on State-owned power utility Eskom and independent power producers, electricity planning, transmission, distribution and the theft thereof, besides other issues.
Energy Roundup – March 2016 (PDF Report)
The March 2016 roundup covers activities across South Africa for February 2016 and includes details of the Department of Energy’s plans to announce the preferred bidders for the first tranche of the coal independent power producer procurement programme; the Council...
Steel 2016: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2016 Report examines South Africa’s steel industry over the past 12 months. The report provides insight into the global steel market and and particularly into South South Africa’s steel sector, including production and consumption, main...
Construction 2016: A review of South Africa's construction industry (PDF Report)
Creamer Media’s Construction 2016 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; key participants; local demand; geographic diversification; corporate activity; black economic...
This Week's Magazine
The two spent-fuel pools at Eskom’s 1 800 MW Koeberg nuclear power station, in the Western Cape, will be full by 2018, increasing the urgency on the State-owned utility to begin pursuing alternative storage options. Koeberg has, over the past 32 years, accumulated a...
South Africa lacks the skills necessary to implement the government’s plan to build 9.6 GWe of new nuclear energy capacity, warns nuclear-qualified Quality Strategies International CEO David Crawford. “Apart from the concern about the affordability of the programme,...
Cybersecurity multinational Check Point has released its latest 700-series cybersecurity systems for small businesses, which draw on its international threat intelligence to provide up-to-date cybersecurity, says Check Point South Africa country manager Doros...
Daimler Trucks and Buses Southern Africa (DTBSA) saw a marked slip in new-vehicle sales in 2015 compared with 2014, with sales dropping from 5 897 units to 5 300 units. The decline came as the South African new truck and bus market declined from 31 558 units in 2014...
Group of 20 (G-20) economies threatened to penalise havens that don’t share information on their banking clients after the leak of the Panama Papers provoked a global uproar over tax evasion. The G-20 will consider “defensive measures” against financial centers and...