BUSINESS
•
•
Access control to the site will be key
to ensuring safety of workers and a
controlled environment;
Around 60 000 tons of steel will be
required for the first two trains in
Area 1. South African companies are
bidding for this, but in addition, a lot of
formwork, cranes and other lifting gear
will be needed to erect the trains.
This is the kind of activity that South
African companies supply into regularly,
whether on our mines or the major power
stations being built, so there is no reason
that we can’t supply into Mozambique’s
massive opportunity either. Indeed, in the
last six months, Africa House has taken
over 100 South African-based companies
to meet with the project developers,
financiers, EPC contractors and key sub-
contractors in Mozambique and globally
to assist them in accessing potential
business. The response has been very
positive – but there are a number of
caveats to this, if companies want to
supply into the projects.
First, these are global projects and
the contractors have global supplier
databases – so it’s very competitive.
Potential suppliers have to register with
all the key players involved and register
properly. Mailing a company profile will
not work. In addition, direct contact with
key procurement teams is critical.
Second, quotes need to be done
timeously and to the spec asked for.
Companies that submit different specs or
take too long with too many queries, will
quickly be forgotten. In addition, always
quote in a global currency, buyers in Milan,
London, Houston or even Maputo are not
interested in Rand-denominated quotes.
Third, payment terms are determined
by the buyers. There are frequent
complaints that South African companies
are too demanding around deposits and
final payments which deters buyers from
engaging with them.
Fourth, our locations should be a great
advantage to supply quality products
to the projects with short lead times
compared to our competitors in Europe,
the Middle East and Asia – but we’re not
reacting quickly enough.
Finally, local content and preferential
procurement is a reality. Companies that
are located in the project area will have
a far better chance of supplying goods
and services into the projects, given the
time pressure that the EPCs and their
sub-contractors are under to deliver gas
by 2023/4.
In the words of the procurement
director at a major EPC involved with
Area 1, “South African business needs
to change its DNA if they want to secure
large orders.” Our industrial base was
built largely on big projects – mining,
petrochemical, power and infrastructure
– and it can benefit enormously from
these developments, if our companies are
geared up for it.
Apart from LNG opportunities, the coal mining industry in Mozambique creates many
opportunities for suppliers.
www.equipmentandhire.co.za
MARCH 2020
19