Company Profile

Date: 20February 2013

Confidentiality

No part of this document may be disclosed verbally or in writing, including by reproduction, to a third party without the prior written consent of Cryogas Express / Triton Express.

Business Management

Brief Overview of Cryogas Express (Pty) Ltd

Cryogas Express (Pty) Limited (Cryogas) is the first company in Sub Saharan Africa to offer a complete cryogenic delivery service solution to the gas industry and trade in general. We service all Southern African regions, therefore we are prepared to send our tankers into other neighbouring countries where there are reasonably tarred surface roads.
Registered as a private South African company in September 2008, Cryogas is a 50/50 joint venture between Triton Express (Pty) Ltd(Triton) and Demotype (Pty) Ltd. Triton was established in 1987 and now boasts a fleet in excess of 400 vehicles and is therefore experts in the field of logistics, warehousing and transportation. Demotype is a wholly owned company of G.J.Hunter, who is the Managing Director of Cryogas. G.J. Hunter has been in the industrial gas business in South Africa for the past 30 years. Cryogas was founded on the strong synergies of combining the wealth of cryogenic experience and transportation expertise.

Cryogas operates out of the Triton offices in Longmeadow Business Estate in Edenvale Johannesburg South Africa. Cryogas is managed by G.J.Hunter but operated by the professional and competent Triton team by means of the same standards, systems and operational excellence that has become synonymous with Triton’s success in the arena of being a professional transportation provider.

Cryogas has tankers capable of supplying payloads of up to 26 ton for the delivery of Liquid Oxygen (Lox); Liquid Nitrogen (Lin); Liquid Argon (Lar); Liquid Carbon Dioxide (LCO2) and Liquefied Petroleum Gas (LPG)

We are not restricted by the number of tankers we can build however this will be dependent on the supply and service level agreements we conclude.

Strengths of Cryogas

The following has been concluded in the shareholder agreement:-

  • Triton will use their financial strength to finance the growth of Cryogas, thus not limiting Cryogas for future expansion.
  • The entire infrastructure required by Cryogas has been incorporated into the existing Triton structure. To list some examples:-
  • Debtors, creditors, purchase order system, finance, operations, workshop, washbay, refuelling,industrial relations, human relations and information technology
  • Triton who manages the operational requirements of Cryogas has been in existence for 25 years in the transport and logistic arena, with over 900 staff members located in 20 facilities around South and Southern Africa, running a fleet of over 400 delivery vehicles.
  • The Managing Director, Graham Hunter has been in the industrial gases business for over30 years, therefore has the understanding of the industrial gas business and the safety requirements which are communicated to the staff and drivers accordingly.
  • Cryogas have highly trained certified and accredited drivers that have been trained through an extensive driver training program using world’s best practices as well as training in accordance with the top South African gas company’s requirements as well as the international EIGA (European Industrial Gas Association) standards.

Guarantees Cryogas can offer

  • Financially security with unlimited capital for expansion in fleet.
  • It has the full backing from the entire Triton Board of Directors
  • The gas industry in South Africa has existing experience with the management and staff / drivers as wehave been runningour cryogenic tankers for all of the major gas companies in Southern Africa.

Synergies

There are synergies between Triton and Cryogas, in that we have the in-house cryogenic experience and expertise as well as the transportation and logistic expertise from Triton. With having the cryogenic experience we can offer many added benefits. An example would be on suggesting improvements relating specifically to the cryogenic equipment (storage tanks) and operations at your customers.

Cryogas’ Account Management Structure

The Managing Director of Cryogas has the day to day responsibility of your account. Within the Triton operation all the support functions are available to Cryogas and ultimately you.

Cryogas will also provide the following management structure to ensure a smooth operation.

  • Supervisory staff located at our offices in Johannesburg for 24 hr close liaison with your scheduling and planning department andwith our drivers.

Management Exposure

The entire management structure of Triton and Cryogas is available to all customers.

Key Personnel for Cryogas Express are:-

Chairman of Cryogas and CEO of Triton Express – Eric Corbishley – (c) +27825697023

Managing Director of Cryogas Express – Graham Hunter – (c)+27825742840

Financial Director of Cryogas and MD of Triton Express – Ian Schutte –(c) +27824125754

Market Share

Cryogas have two offerings:-

  1. We offer our tankers on a full turnkey basis for hire mainly to the gas industry.As Cryogas has this unique offering of outsourced cryogenic tankers, we therefore have a 100% market share as there is no other company that offers cryogenic tankers for hire with a full offering of truck tractor and driver/s.
  2. We offer product for direct supply from approved product sources.

Triton’s market share of all logistics in Southern Africa of the specialised area of warehousing and logistics for business to business relationships, Triton has approximately 45% market share.

Network of Suppliers

For the Cryogenic tankers we have had our tankers built by Rand Air and Gas in Spartan but also utilise Cryoshield in Apex for specialised support. The LPG tankers have been built by GRW Engineering. Other major suppliers to our operation are Volvo and Volvo service centres for our truck tractors. Rand Air & Gas is a major supplier of tanks and tankers to the gas industry in Southern Africa.

We believe we utilise the very best truck tractors in the industry. Both Triton and Cryogas has standardised on Volvo with the result we get an excellent support service. We will offer the following support to give you piece of mind

  • 24/7 liaison with our drivers
  • Satellite tracking of the vehicle
  • If there are areas where there is no cell signal we do make satellite phones available to our drivers so that there is continuous communication
  • Our in-house workshop is an officially approved workshop by Volvo where only genuine Volvo parts and spares are used on the vehicles.
  • If we have a breakdown we will get the nearest Volvo agent to attend to it, failing which we will fly our own mechanic to attend to the breakdown.
  • If all else fails we will dispatch another vehicle

Gases Handling

The Managing Director of Cryogas has been involved in the industrial gas business in South Africa since 1979, also having served on the executive of one of the major gas companies running the bulk business for 11 years. Therefore besides productivity the focus is on, safety and the hazards associated with gases. Cryogas has also been a member of the Southern Africa Compressed Gases Association since June 2009.

Driver Behavioural Safety Management Program

Cryogas / Tritondo have a driver behavioural and monitoring program where all our drivers are monitored and incentivised for good driver behaviour. Also the control systems we have in place are:-

  • 24 hr live tracking for truck location, speed violation, harsh braking and stop reports
  • Volvo Management System monitoring harsh braking; speeding; fuel consumption; over revving; cruise control usage; excess idle time
  • All our vehicles are governed to a maximum of 90 km on the pedal and 85 km on cruise control, however all our drivers are strictly monitored via the Tachograph system to ensure that they remain within the legal speed limit at all times.
  • All drivers are briefed before and debriefed after every trip utilising all available information
  • We only run with new tyres. We do not run any of our vehicles with retreads, so should these need replacing this will be done with new tyres only.
  • For breakdown and services we only use genuine Volvo and Wabco parts for our truck tractors and tankers respectively.

HIV / AIDS Driver Support Program

Through the Nation Bargaining Council all drivers are made aware of the wellness support program and encouraged to use the free testing. Also the drivers through the Discovery medical aid are also encouraged to use their facility. Driver awareness information is posted in and around the Triton facilities from time to time to also create the awareness.

Wellness Program

Our Employee Wellness Programme is a National initiative which is designed to improve the health and well-being of employees, reduce or eliminate problems affecting employee health, absenteeism, staff turnover, demotivation, poor commitment and determination, overall impacting on the work performance and productivity of the our workforce.

Operational Incident and Accident investigation procedure

As we are under the operation of Triton we adopt the Triton Procedures.

Restrictions regarding Type of Product

We are not restricted to the type of products we handle, however Cryogas’ business in limited to the handling of gasses only.

Protocol for dealing with gases/ hazardous materials.

We have an emergency response procedure in place in the event of a cryogenic tanker accident which has been forwarded to the SACGA and has subsequently been approved. We are audited and certified through SQAS (Safety and Quality Assessment System) for the transportation of dangerous goods.

Technology

Technology Deployed

  • Currently we have the following equipment installed on our tankers:-
  • Flowcom 2000 flow meters
  • ABS /EBS Wabco braking system
  • Roll stability system
  • Lifting axle
  • Anti tow away braking system to prevent accidental tow away.
  • DriveCam camera monitoring
  • Lane drift assist system
  • We have 7 day tachographs and on-board vehicle mechanical performance management systems which provides driver information, which monitors:-
  • Harsh braking
  • Speeding
  • Fuel consumption
  • Over revving
  • Cruise control usage
  • Excess idle time

Satellite Tracking Solution

We currently usestate of the art satellite tracking – a sophisticated, Internet-based tracking solution which allows us to personally track a vehicle in near real time by simply logging on to the Internet. We utilises cutting-edge technology to provide individuals and businesses with the widest range of specialised tracking solutions and value added services.

Fuel Cards

We currently use recognised fuel company fuel cards for refuelling at retail outlets; however we encourage the refuelling at our onsite diesel pumps.

Regular Training and Staff Familiarisation

Driver training is provided and refresher training is done and the drivers are updated with any new developments which may arise.

Responsiveness

Geographical Locations

Cryogas currently operates out of the Triton facilities in Edenvale, however we can utilise any of the Triton facilities in South Africashould the need arise.

Triton Express Branches are located in the following centres:

Johannesburg - owned
Durban
Pietermaritzburg
Cape Town
Port Elizabeth
Bloemfontein
East London
George
Nelspruit
Polokwane

Now more recently, Richardsbay, Newcastle and Uppington.

The latest facilities opened by Triton are into our neighbouring countries, Zimbabwe; Swaziland; Mozambique; Namibia

Handling Customer Complaints or Non Compliance and company escalation procedure

The process of handling customer complains or non-compliance is via the chain of command. The issue at hand is elevated from Supervisor to Operations Manager to Managing Director to CEO.

Human Resource Management

Driver retention

We provide our drivers with a very attractive package, which includes the following:-

  • Heavily incentivised production and safety related salary structure
  • Medical Aid
  • Pension
  • Financial assistance
  • Bursary and study loans
  • Status bonuses – Platinum; Gold and Silver
  • We provide growth and development opportunities through training and succession planning

HR / IR and Disciplinary Procedure

Through Triton we have full access to the Human Resource Department where all HR issues including fair disciplinary action is taken for problem resolutions. Triton has a staff compliment of over900 people thus the necessity for this support department.

Incentivised Service Award and Remuneration Program

We have devised an incentive based remuneration system to encourage safe but productive performance. We believe that the more productive the driver is the more successful will our company be, therefore the drivers remuneration is made up as follows:

  • Basic Salary
  • Night out allowance
  • Cross border allowance
  • Neatness / Cleanliness of truck and tanker
  • Tyre bonus
  • Admin bonus
  • Km travelled
  • Fuel consumption
  • Tachograph scoring
  • Harsh Braking penalties
  • Status bonus

Our drivers are extremely well paid but ONLY if they perform.

Employee Union

We do not have a union in either the Cryogas or Triton organisation as we compensate way above the National Bargaining Council rate and above the industry expectation.

Legislation

In South Africa we can confirm that we are fully compliant with the following legislation:-

  • Labour Relations Act 66 of 1995, as amended
  • Basic Conditions of Employment Act 75 of 1997, as amended
  • The Employment Equity Act 55 of 1998, as amended.
  • Skills Development Legislation Act
  • Unemployment Insurance Act
  • Occupational Health and Safety Act
  • Compensation for Occupational Injuries and Disease Act