Opportunity Issue 111

MANUFACTURING Making a

MANUFACTURING Making a concrete difference in rail and other infrastructure sectors There is light at the end of the tunnel for South Africa’s railway network, according to Colossal Concrete Products, Southern Africa’s largest producer of precast-concrete-railway sleepers. South Africa today. In March 2024, Michelle Phillips was appointed CEO of Transnet. Colossal Concrete sleeper stacking area. Two senior executives at a manufacturing enterprise that is reviving rail infrastructure strongly believe that the South African rail sector can recover. Colossal Concrete Products Chief Executive Officer, Gwen Mahuma-Madida, and Chief Operating Officer, Mmapitso Kiewiet, believe that the thousands of kilometres of track crisscrossing South Africa will be restored, contributing towards economic recovery and forging critical linkages across the SADC region and into Africa. As CEO and COO of a company that sees a central role for itself in that revival, Mahuma-Madida and Kiewiet personify the pivotal part women are playing in the rail and infrastructure sectors in A Colossal vision for rail Mahuma-Madida explains that she and fellow investors chose the name “Colossal” because they had a colossal or massive vision of developing infrastructure products and services across the continent. In 2021, Colossal Concrete Products, a Level 1 B-BBEE venture, purchased a precast concrete products manufacturing facility in Brakpan and a mothballed operation at De Aar in the Northern Cape from the company formerly known as Aveng Infraset. The De Aar facility reopened in October 2023, following the signing of a one-year contract with Transnet Freight Rail (TFR) to supply precast concrete railway sleepers. This has been extended by six months to December 2024. Both Mahuma-Madida and Kiewiet believe that rail will rise above challenges such as poor maintenance, vandalism, theft and lack of investment. Mahuma-Madida points out, “With new leadership, there is a fresh and invigorated approach. This will not only have a major impact on the rail network and other infrastructure, but also on our own workforce. We can produce a million sleepers a year; currently we are not even scratching the surface of our full capacity, “Having said this, we believe that we will benefit from the escalation in the delivery of infrastructure upgrades, as well as the resumption of maintenance of our rail infrastructure. However, we can also increase demand for our products through working closely with the private sector in construction, mining, engineering and renewable energy. This applies both in South Africa and throughout Sub-Saharan Africa where we are actively pursuing distribution agreements for our products.” Pan-African infrastructure expansion Colossal’s opportunities extend beyond their contract with Transnet Freight Rail. The company also supplies PRASA via thirdparty contractors as well as private-sector rail projects at sites such as a manganese ore mine in the Northern Cape. Colossal also recently supplied rail sleepers and poles for a 109km railway upgrade project in Namibia and distributes poles in Botswana. The company’s recent distribution agreement and collaboration with Eswatini precast concrete manufacturer and distributor NPC is expected to open up a new Sub-Saharan African 58 | www.opportunityonline.co.za

MANUFACTURING market and an export springboard for precast concrete products via the port of Maputo in neighbouring Mozambique. Mahuma-Madida says that Colossal has a variety of products which play a role in the infrastructure value chain. These include concrete poles, masts, culverts and pipes. “We are also trying to grow into larger markets such as telecommunications, energy and construction. One of our most significant advantages is the flexibility to set a unique and sustainable system of modular, portable ‘project factories’ which cater for specific projects and can be dismantled post-completion.” Making a difference Colossal believes its contribution to developing infrastructure goes beyond the actual physical product: “We help to change people’s lives and make a sustainable difference. For example, there is a whole economy around a rail network: it not only boosts a country’s gross domestic product (GDP) but promotes ease of movement, facilitating transport of both people and goods. This means less heavy commercial transport vehicles on the road and therefore less damage to the road infrastructure,” explains Kiewiet. Making a difference in peoples’ lives started close to home for Colossal. Not only were jobs retained with the company’s investment, but employment in the De Aar and Brakpan facilities has collectively increased to just under 200. Investment in people encompasses the local community around the Brakpan and De Aar facilities, with some 10 additional people benefitting from each person employed. As this business is very seasonal and depends on key contracts and orders, a base of permanent employees is employed and then limited duration contractors (LDCs) are hired. In Brakpan, some of these LDCs have become permanent. De Aar was restarted with just a handful of people who were re-employed in their former positions but this has scaled up as more production lines have been opened. Women steaming ahead Mahuma-Madida’s entrepreneurial initiatives have been focused on rail since 2012. “This is an industry about which I am very passionate,” she says. “Together with fellow investors, I am still looking for other opportunities beyond rail, products and services which we as Colossal Concrete Products can supply to different infrastructure-related sectors: from renewable energy, to water, roads and the mining and construction sectors.” Colossal is also focused on promoting the role of women in the sector. Notes Kiewiet, “In administration, we are highly weighted towards women. In the factory, because the work requires heavy lifting, there are more men. However, we do have women who work in our prepping and stacking departments.” Mahuma-Madida adds that there are significant opportunities in quality and safety. From the procurement of raw materials to dispatch and from testing to research and development, there are areas where women can excel. A concrete foundation for the future In addition to creating jobs, Colossal has also made strides in improving quality with a product-reject rate far below the industry average of 0.5%. Kiewiet says, “We are proud to say that the average reject rate at our culvert plant is 0%. Furthermore – despite the volumes we produce at our longline plant – our reject rate average there is 0.1%, which is a true testament to our quality and manufacturing processes. “Over the past three years, we have turned this business around, not only securing the TFR contract but securing our leading position as the largest supplier of railway sleepers in Southern Africa. We are also a major supplier of other precast concrete products required for infrastructure development not only locally but across the continent. “As such, Colossal has built up a great reputation as a trusted manufacturer of quality, innovative precast concrete products, as well being as a company which takes care of its staff, customers and suppliers. We have substantial capacity to produce quality precast concrete infrastructure products across Sub-Saharan Africa, and we are ‘on track’ to do just that,” Mahuma-Madida concludes. About Colossal Concrete Products Colossal Concrete Products is a black women-owned and controlled precast concrete manufacturing Level 1 B-BBEE company, formed by a group of partners with many years of experience in the manufacturing and industrial sectors, and a common, unified belief in the future of South Africa. With effect from 1 June 2021, Colossal Concrete Products became the new owner of the Brakpan and De Aar precast concrete manufacturing facilities formerly operated by Aveng Infraset. These acilities specialise in and have been supplying industry with key infrastructure products for industry for more than 65 years, producing the first concrete rail sleepers in 1958. Colossal Concrete manufactures products in compliance with South African National Standards using the ISO 9001 quality management system, and holds licensed trademarks and intellectual property for Infrabolt, Durasafe, Duratank, THOSTI and Abetong. Gwen Mahuma-Madida, Chief Executive Officer at Colossal Concrete. Mmapitso Kiewiet, Chief Operating Officer at Colossal Concrete.