1 – FILENAME

South African

Port Operations

BEE SUPPLIER POLICY AND STRATEGY

SOUTH AFRICAN PORT OPERATIONS

2 – FILENAME

South African

Port Operations

SAPO PROCUREMENT POLICY STRIVES TOSAPO PROCUREMENT POLICY STRIVES TO • promote the effective and efficient development of suppliers

and contractors from previously disadvantaged communities

• Ensure that these suppliers build sustainable businesses and

in so doing build long term relationships with SAPO’s

business units

• Ensure that SAPO continues to receive a service of the

highest quality at competitive prices

3 – FILENAME

South African

Port Operations

TENDER EVALUATIONTENDER EVALUATION • All tenders need to be technically and commercially

compliant. Thereafter evaluation weighting is as follows;

• For contracts of less than R500,000 a weighting of 80% on

price and 20% on BEE

• For contracts exceeding R500,000 a weighting of 90% on

price and 10% on BEE

4 – FILENAME

South African

Port Operations

BEE EVALUATION IS BASED ON THE FOLLOWINGBEE EVALUATION IS BASED ON THE FOLLOWING • BEE Shareholding and voting rights

• Active Management & Employment equity within the company

• Gender – promotion of female owned business

• Promotion of business owned by disabled persons

• Procurement policies within the company

• Community and social responsibility

5 – FILENAME

South African

Port Operations

SHAREHOLDING & VOTING RIGHTSSHAREHOLDING & VOTING RIGHTS

• Require proof of Shareholding eg. Share certificates

• Joint ventures will be evaluated on effective % of the JV held

by HDI’s eg Traditional supplier enters into a 50/50 JV with a

company that has 40% BEE shareholding. JV will be rated at

50% of 40% = 20% BEE

• Voting rights must be reflective of shareholding

6 – FILENAME

South African

Port Operations

ACTIVE MANAGEMENT & EMPLOYMENT EQUITYACTIVE MANAGEMENT & EMPLOYMENT EQUITY

• Preference is given where the BEE shareholders are active

participants in the management of the company as opposed

to merely “investors”

• Evidence of genuine skills transfer to promote continued

involvement and sustainability of the individuals in the

business

• Employment equity polices of the enterprise

7 – FILENAME

South African

Port Operations

PROCUREMENT POLICIES / SOCIAL PROCUREMENT POLICIES / SOCIAL

RESPONSIBILITYRESPONSIBILITY

• Preference is given to enterprises that also promote

the use of BEE subcontractors or service providers

• Enterprises that play an active social responsibility

role are recognised eg. Building of a clinic in a

previously disadvantaged community

8 – FILENAME

South African

Port Operations

PRESENT STRATEGYPRESENT STRATEGY

• Increasing procurement management resources at SAPO HQ

and port level

• Advertise in appropriate media eg Ilanga, Sowetan, Isolezwe

• Stipulate BEE participation in tender documents

• E-procurement business is only awarded to BEE suppliers

• Relaxation of customary requirements for performance and

retention guarantees depending on scope of work and risk

9 – FILENAME

South African

Port Operations

PRESENT STRATEGY (cont)PRESENT STRATEGY (cont)

• Setting of internal BEE spend targets – for this year it is set at

45% of total spend

• Certain categories of business is specifically set aside for

enterprises owned by females and/or disabled members of

the community eg. At Durban port all stationery,

refreshments and catering requirements will be allocated to

this group

10 – FILENAME

South African

Port Operations

PRESENT STRATEGY (cont)PRESENT STRATEGY (cont)

• Campaigns to educate the supplier base of our requirements

and to create awareness of the opportunities. We have held

BEE Open days at

• Durban – February 2003

• Richards Bay – January & September 2003

• Saldanah – July 2002

• Cape Town – April 2003

11 – FILENAME

South African

Port Operations

CONCLUSIONCONCLUSION

• SAPO has achieved our initial objectives for promotion of

BEE opportunities in the port operations environment

• Our intention is to refine and better manage this process

going forward to ensure we are assisting in the creation of

long-term and sustainable empowerment opportunities

• We are committed to ensuring that this is a transparent and

fair process in compliance with good corporate governance

12 – FILENAME

South African

Port Operations

Thank youThank you