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Sunday, June 06, 2010 |
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A new way of doing business in our industry... converting viable prospects into projects
:: News
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To maintain a competitive edge in our industry it is important to constantly explore and investigate new ways of doing business. The Concessions business unit provides, in partnership with other business units and the Group, a competitive advantage through the creation of new markets where existing capabilities are leveraged within different business models.
By integrating with the individual business units in the Group, the Concessions business unit adds value by complementing the existing skills base with specialist skills, market intelligence, and the creation of entrepreneurial opportunities through alternative business planning and project structuring.
In addition to our multi-disciplinary construction capabilities, the Stefanutti Stocks’ Group has a wealth of commercial acumen that we can leverage in our project procurement. “We are capable of business and investment opportunities that are more complex than the projects we have procured in the past,” says Rob King, managing director of the Concessions business unit. “This opens up a whole new avenue of business and investment opportunities for us to explore, and whilst we are constantly gathering market intelligence and searching for viable prospects, we welcome any project proposals from our colleagues who are active within the Group’s industries of operation.”
Potential opportunities can range from a toll-gate or power supply in Africa through to open cast mining, water and sanitation, treatment of solid waste for municipalities, schools, universities...the possibilities are limitless. The Mining Services business unit has successfully tapped into the Concessions business unit’s specialist skills whilst exploring potential mining projects in South Africa. “The interaction between the Concessions business unit and ourselves was very beneficial in further positioning our business unit in this sector,” says Mike Smith, managing director of Mining Services. “We look forward to further collaboration between Concessions, the client and ourselves.”
Each prospect goes through an assessment process where the proposed project is processed and reviewed to establish whether it is feasible and sustainable, both for the Group and for the client. If it is a commercially viable venture a business model will be proposed following collaboration with the business unit and the potential client. The relevant Stefanutti Stocks business unit must also show clear interest in participating in the project, or it is not pursued further. Clear expectations of investment, return and responsibilities for all parties involved are determined, and once a workable deal is structured, the project will go to tender stage.
The Roads & Earthworks business unit has prequalified for projects in Zambia, where they have tendered as part of a consortia also including local companies. “We are one of the few companies in the industry with a business unit dedicated to driving concessions,” says Russell Crawford, managing director of the Roads & Earthworks business unit. “This not only makes us more competitive at tender stage, but also gives us an in-house high caliber, specialist skill base to tap into – one that shares a common goal and is reporting to the same bottom line.”
“According to the Development Finance Institution there is a lot of money available for investment in Africa,” says Rob. “However, there seem to be very few quality projects to invest in. It’s important that as a Group with our diverse capabilities, we keep our eyes peeled for all projects with potential, in Africa and elsewhere. If we can produce a business model that is commercially viable, we are producing a business opportunity for the Group. We don’t however need to limit ourselves only to Africa.”
Stefanutti Stocks has prequalified on:
- The Department of Rural Development and Land Reform’s Head Office Accommodation PPP in South Africa, in conjunction with Stefanutti Stocks Building.
- Kitwe-Chingola Toll Road in Northern Zambia, in conjunction with Stefanutti Stocks Roads & Earthworks.
The Concessions business unit is based in Kyalami Business Park in Johannesburg and can be contacted at +27 11 466 8010.
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