Members Forum 2010

Saied Solomons

Programme

• Introduction - Saied Solomons

• Economic Outlook - Rob Jeffrey

• Overview of the Industry - Mike Winfield

• CAPSA / CapCoR status - Les Sampson

• Facilitation of the process - Peter Thomas

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• Facilitator driven -

• Presentations to provide overview for discussion

• Discussion to identify key issues

• Business plan to be based on outputs of workshop

Process & Structure

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Introduction

• Membership of Sabita

• Current business plan

• Source of funding

• Application of funds

• Key industry issues

Membership Profile

Sector 2010 2007

• Oil companies 6 6 • Secondary producers 16

15• Contractors 18

16• Consulting Engineers 29

29• Service providers 9 7

Total 78 73

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Membership Growth

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30

40

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60

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'80 '81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '91 '92 '93 '94 '95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 10

Previous members’ forums• 2007 members’ forum (Drakensberg) resulted in the

current business plan

• 2009 Sustainability Conference for members (Kleinmond) placed emphasis on:

Sustainability of the industry Industry to take charge of its destiny regarding

sustainable practices Technology to improve durability of asphaltDevelop practices to reduce emissions & energy

consumption

Strategic Plan 2007 - VisionSabita’s plans & actions are consistent with good corporate

citizenship to underpin its dealings with government & to assist its members.

MissionSabita will:

• Advance best practice in southern Africa with due regard to worker health and safety, as well as the conservation of the environment;

• Provide education and training to develop skills & competencies that are sustainable & aligned to national goals;

• Engage government to promote the social & economic value of road provision & efficient delivery by state road organisations.

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• Health Safety and Environment (HSE) -

morphing into sustainability

• Human Capital Development

• Engagement with Govt

• Technology Development

(Aligned with similar organisations world wide)

Current focal areas

Development of an award system (HSE Charter) Development of code of practices

o The safe handling of solvents in a bitumen/asphalt materials laboratoryo Loading at refineries

Bitumen safety training Incident reporting system Air Quality Act HSE Management System (HSEMS) Greenhouse gas calculator Dissemination of global practice

HSE - SUSTAINABILITY

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Human Capital DevelopmentAsphalt Academy

Hosting of training courses for practitioners Implementation of pavement engineering course for

new entrants Develop training courses for lower levels skills Expand training courses into neighbouring territories Seek partnerships to expand into CapCoR

CAPSA Custodian of funds Support management for CAPSA 11

SAT - Co-operation & support

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Technology Development

High Modulus Asphalt (HiMA) project – interim guideline Warm Mix Asphalt (WMA) - interim guideline Develop best practice guidelines and codes of practice

o The design and use of slurry seals and microsurfacingo The design, manufacture and construction BRA wearing courses

The reformatting of test methods into SANSo Asphalto Binder distributors

Develop labour intensive construction (LIC) method statements Design of premixed asphalt – asphalt quality Develop durability tests for binders Other – TRH’s / TMH’s/ TG’s/ SAPDM

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Engagement with Stakeholders

Councillor empowerment programme– Preservation and provision of roads

Promote socio economic benefits of roads Promote sustainable practices

– Warm Mix Asphalt– Recycling of RAP in HMA / WMA– IRF/SARF working Group involvement

Co-Hosting of RPF– Interaction with all stakeholders

Establishment of GAPA

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Source of funds Membership subs

o Ordinary (Volume basis)o Associate (Fixed)o Affiliate (SMMEs)

Sponsors levy paid on ton of bitumen soldo HSEo Technology Development & Stakeholder

Engagement Education grant - equal fixed amount paid by

sponsorso Sponsorship of the Asphalt Academy

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Sponsorship

-1

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5

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R

96 97 98 99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10

Year

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% of average List PriceGRAPH 2SOURCE OF FUNDS

Year R/Ton AverListPrice%AverListPrice

1995 9.50 560 1.7%1996 9.50 842 1.1%1997 9.50 744 1.3%1998 11.50 687 1.7%1999 12.50 875 1.4%2000 12.50 1288 1.0%2001 8.94 1442 0.6%2002 9.19 1945 0.5%2003 9.63 1846 0.5%2004 10.37 1798 0.6%2005 11.44 2176 0.5%2006 12.40 2676 0.5%2007 13.22 2725 0.5%2008 14.18 3789 0.4%2009 14.66 3108 0.5%2010 14.66 4028 0.4%

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

1995 1997 1999 2001 2003 2005 2007 2009 2011

Graph 2 - Source Of Funds

%AverListPrice

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Application of Funds

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09

Lobby

HSE

Gov

E&T

TechDev

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Sabita / Industry Image

• Current Image Anti-competitive practices Inconsistent quality Availability of material is unreliable HSE practices not the best Asphalt is still preferred……..for now

Good engineers!

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Cape Town