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|Ports|PROJECT|Projects|Rental|Africa|Angola|Botswana|Eritrea|Kenya|Mozambique|Namibia|Senegal|South Africa|Uganda|Durban Depot|South African Depot|Energy|Equipment|Manufacturing|Mining|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 3 hours ago The cost of copper theft decreased to R13-million in November from R13.2-million in October, according to the SA Chamber of Commerce and Industry's (Sacci) Copper Theft Barometer. "The November figure is 1.51% lower than a month ago and 36.8% higher than a year...
Updated 5 hours ago Ailing German engineering and services company Bilfinger SE has agreed to sell most of its construction division to Swiss building giant Implenia as it seeks to focus on more lucrative industrial services. Bilfinger – which has issued four profit warnings this year,...
Recent Research Reports
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.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
This Week's Magazine
South Africa remains an important manufacturing and export platform for Ford Motor Company, says executive chairperson Bill Ford. However, he adds that other countries on the continent are “becoming interesting”, and that the US carmaker is casting its net wider for...
Germany’s Max-Planck-Society (MPG) and the Max-Planck-Institute for Radio Astronomy (MPlfR) are investing €11-million (about R150-million) into South Africa’s MeerKAT radio telescope array programme. The money will be used to design, build and install S-band radio...
Infrastructure spend in sub-Saharan Africa will grow from $70-billion in 2013 to $180-billion by 2025, says PwC capital projects and infrastructure Africa leader Jonathan Cawood. This is one of the findings of PwC’s Capital Projects & Infrastructure report on East...
Private-owned defence and aerospace manufacturer Paramount Group and the Ichikowitz Family Foundation unveiled its Anti-Poaching Skills and K9 Training Academy in Magaliesburg last month.
The inclusion of Bluetooth to provide sub-three meter accuracy and heightened functionality for users is one of the ways to change existing wireless networks into engagement networks. An engagement network differs from common wireless networks in that it enables the...