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|Engines|Gas|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|Eastern Cape|Richards Bay|Western Cape|Infrastructure|James Shepherd|Martin Foster|Power|Rupert Soames|Cable|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 53 minutes ago In the last three years, gas generator-sets have risen in prominence in Europe and the US, owing to stricter emission laws and lower gas prices. The shale gas boom in the US and increasing adoption of biogas in Europe have kept the gas generator-sets market in the...
Updated 53 minutes ago A locally developed and manufactured industrial cleaning machine that uses dry ice to clean and prepare surfaces is undergoing testing before being launched onto the South African market at the Electra Mining Africa trade show, in Johannesburg, next month.
Updated 53 minutes ago Blurb: Suzanne Daniels, senior manager in the office of the group executive, technology and commercial at Eskom, talks to Tracy Hancock of Engineering News about her attachment to her secretary and why it is okay to question the boss.
Updated 7 hours ago South Africa’s economic transformation and inclusive growth will not result from a single intervention but rather a range of mutually supporting initiatives, Deputy President Cyril Ramaphosa said on Thursday, adding that in many cases this did not require new...
Recent Research Reports
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...
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.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
Updated 1 hour 5 minutes ago South African State-owned defence industrial group Denel has announced its fourth consecutive year of profits. The group's results for the financial year 2013/2014 were recently announced at its head office in Centurion, south of Pretoria. Revenues grew by 17%, net...
Updated 1 hour 5 minutes ago There is little opportunity for JSE-listed infrastructure company Group Five to grow shareholder value in the domestic market, says CEO Mike Upton. He says value can still be found in the private sector, in the renewable and industrial power sector, as well as in...
Updated 1 hour 5 minutes ago The National Association of Automobile Manufacturers of South Africa (Naamsa) has announced the event dates of the 2015 Johannesburg International Motor Show (JIMS). The event will take place from October 14 to October 25, 2015, at the Johannesburg Expo Centre, Nasrec.
Updated 1 hour 5 minutes ago UK engineering support services provider Babcock is set to deliver the largest order of global truck manufacturer DAF’s truck tractors in Southern Africa to bulk carrier road-based logistics company Ngululu Bulk Carriers (NBC), with 133 trucks to be delivered in...
Updated 1 hour 5 minutes ago Digital radio communications in the African local government space can open up the world, but have many challenges to overcome, notes integration and migration of legacy radio communications infrastructure with digital mobile radio company Emcom Wireless head of...