Stephen Pell has his job cut out. The head of Stefanutti Stocks building unit is at the centre of the majority of the activity around the recent corporate merger.

A large part of the R1,1bn merger between the construction groups Stefanutti & Bressan and Stocks is taking place in Pell’s unit. That is because Stocks was largely a building business with a small civil engineering operation. So the essence of the 2008 merger that created the R6,3bn Stefanutti Stocks is being experienced in the building business unit.

Pell entered Stefanutti Stocks from the former Stocks, whose building operations had spread across the Southern African region and the Middle East. Pell says the merger was attractive because it provided good synergistic operational and cultural blends. He says the old Stefanutti & Bressan had its roots and a strong building base in KwaZulu Natal, whereas the former Stocks was stronger in other regions. The combined operation has produced a geographically diversified and strong entity, he says.

The new building unit spans a number of sectors that include the residential and commercial markets. The unit recently concluded work on the prestigious One&Only, the luxurious new Cape Town hotel undertaken by hospitality mogul Sol Kerzner. The group was also in the joint venture that won the R1,4bn expansion of the Cape Town International Airport and the R500m extension at the OR Tambo International Airport.

The unit also contains a focused housing operation, which operates mainly in the affordable housing sector. A large portion of the housing development work is from mining and industrial linked developments, as well as some private developers. This operation does, however, have the ability to operate in the low-cost RDP arena.

The building market is going through a lull due to the global economic meltdown, but Pell is confident that his division is well positioned. He says the merger has retained the entrepreneurial vibe, backed by a bigger operation. “Size does matter,” says Pell. “We are beginning to see the benefit by being recognised more often in larger projects.” Stefanutti Stocks’ building unit is probably within the top four in terms of size in the Southern African region, he says.

Pell says the group has successfully dealt with integration issues and more specifically the people factor. “This was important to us as it speaks to the strategic objective of the company. We want to be the best in our market by delivering quality service, on time. The only way we can achieve this is to ensure that all our people exude enthusiasm and proactiveness towards all our clients and customers because that will be our critical differentiating factor.”

Though the local building market has gone quieter, Pell sees growth opportunities, which can be derived through offering clients extra value. He says in such a tight market, Stefanutti Stocks’ black economic empowerment (BEE) credentials will add to the competitive edge. Stefanutti Stocks boasts the best empowerment credentials in the construction sector of the JSE. It was recognised as a leading BEE player in the FM’s 2009 Top Empowerment Companies survey.

Pell also sees opportunities for growth in the Middle East, where his unit maintains a fair amount of exposure. “When we talk about the Middle East people focus on Dubai,” says Pell. The region is bigger than Dubai and offers opportunities in places like Abu Dhabi, Bahrain and Qatar, he says. “Our Middle East operations include interior fit-out and refurbishment business Al Tayer Stocks and the electromechanical business Zener Steward. We have also recently announced that we intend to start up a general construction operation focused on the infrastructure market in the Middle East, which will be an area of growth to us in the long term.”

Pell also expects work to flow in from the broader Southern African region. The group has satellite offices in Swaziland, Botswana, Zambia and Mozambique.

He says that though building margins remain tight, the group is expecting an increase in business. He says the order book is geared to remain solid into 2010 and beyond. The unit will rely on its geographical diversification to navigate the market.

The building unit derived 20% of its total 2009 financial year revenue of R2,7bn from foreign operations. This is projected to reach the 35% mark in the near future. The backing of an enlarged group also promises synergistic opportunities.

Fireworks were the order of the night when the lighting of the arch above the Moses Mabhida Stadium was celebrated in Durban on Saturday.

The who’s who in the political and soccer fraternity were present at the ceremony on Saturday. Local Organising Committee chairman Irvin Khoza, Sports Minister Makhenkesi Stofile, Premier S’bu Ndebele, and MEC Zweli Mkhize were among the dignitaries at the glittering event.

Ndebele said the completion of the arch symbolised unity.

“It is a celebration of teams working together to create not only an architectural and engineering masterpiece, but to physically create an icon that symbolises and spans years of history, hope and work, to let all South Africans feel the pulse of unification,” he said.

“South Africa is ready to host the 2010 Fifa World Cup. KwaZulu- Natal and Durban are ready to host the 2010 Fifa World Cup.”

Ndebele said South Africa was poised to make the 2010 World Cup an African event – one that will help spread confidence and prosperity across the entire continent.

“As hosts of the 2010 Fifa World Cup, South Africa stands not as a country alone – but as a representative of Africa, and as part of an African family of nations,” he said.

The stadium is named after one of the country’s most iconic struggle leaders, Moses Mabhida.

In 2006 the provincial government went to Mozambique and brought back the remains of Mabhida. He was laid to rest outside Pietermaritzburg.

Ndebele hailed the eThekwini municipality, saying the city was on track to complete the iconic stadium that will serve as a symbol of pride.

“We celebrate the completion of the stadium arch, which is a proudly South African architectural, engineering and construction milestone. ”

Construction company Group Five has won a R1,8-billion contract from Transnet to widen Durban's existing harbour by 100m and to increase the depth by 6m.

Working with Belgian company, Dredging International, Group Five Civil Engineering is responsible for the civil portion of the contract, valued at R1,1 billion.

Transnet group chief executive Maria Ramos last week announced the state-owned enterprise's plans to spend R78 billion on expanding South Africa's rail, port and fuel pipeline infrastructure over the next five years and this amount is likely to grow as more projects get the go-ahead.

Group Five's managing director of the civil engineering operations, Andrew McJannet said: "We are very pleased with this contract, which was won against international competition. We believe our previous marine civils experience, such as the Moma Jetty in Mozambique and the dry bulk terminal jetty in Richards Bay, played a role in us being the winning bidder."

Group Five's partner on the project, Dredging International, has dispatched a hi-tech dredger capable of moving 5000m of rock and silt an hour from Belgium to achieve the 7-million cubic metres that will be moved over the next two years.

"This is the third major contract in Kwazulu-Natal awarded to the group since the beginning of 2007. We have already started on the 2010 Durban soccer stadium, in consortium with WBHO and Pandev, and have signed the contract for the R6,8 billion King Shaka Airport, in which Group Five is the lead contractor for the Ilembe Consortium - which includes WBHO and the KZN Empowerment Group," said Group Five's chief executive officer Mike Upton.

Work on the harbour has started, with the demolition of existing land structures and the establishment of a pre-cast concrete yard close to the site where the blocks required for the contract will be cast.

The contract is due for completion in May 2010

Group Five is to revisit its level of over-border work as a result of the SA Government's infrastructure budget, says Mike Lomas, the company's CEO

African Nations Lag Behind in Efforts to Encourage Businesses Through Regulatory Reforms.

South Africa's State-owned Industrial Development Corporation (IDC) said yesterday that it would take a 15% stake in the planned 660 000-t aluminium smelter at Coega, in the Eastern Cape.

VETERAN deal maker Brian Gilbertson emerged at the weekend as a potential white knight to save the $2,2bn Coega aluminium smelter project.

Developers target the rich and famous for island residential project.

Cape Town - Negotiations with Alcan of Canada on a scaled-down version of the proposed aluminium smelter at Coega were continuing, Lionel October, a deputy director-general in the department of trade and industry, said on Friday.

IDC will invest in the planned aluminium smelter at the Coega industrial development zone and the Sishen and Sishen South iron-ore projects.