The transport sector may be under some serious pressure on the stock market right now, but it's on the black economic empowerment (BEE) scene that industry leaders like Super Group are showing off.
It's also worth noting that the industry has yet to conclude its empowerment charter.
Super Group - founded by Larry Lipschitz in 1987 - last year's number 45 in the FM's Top Empowerment Companies (TEC) survey, is ranked eighth overall. It's a significant improvement. It has overtaken Imperial to reclaim the sector's most empowered JSE-listed group title.
It improved every scorecard element (barring enterprise development where it already gets full marks). Its impressive score on employment equity booked it a place in the category's Top 10 along with The Don and the Hugo Nelson-led Coronation.
Imperial slid to the second position in the sector after garnering 52,62% (2007: 50,14%). The behemoth, previously led by Bill Lynch, falls to number 53 in overall rankings in this year's TEC. Lynch, hailed for turning the transport minnow into a titan during his 16-year tenure, which ended last year, died of cancer in January.
Though Imperial and Super Group did well on the skills development and procurement fronts, for instance, Steven Hawes of Empowerdex ascribes Super Group's top points to other pillars of broad-based BEE. What also distinguishes it, he says, is the ownership funding factor of its principal BEE partner Peu Group.
"The Super Group deal was restructured to be different from many other BEE deals, which in effect gave it (the transaction) unencumbered equity," he says.
Peu, which is led by Peter Malungani, acquired 25% of Super Group in 2004 in a BEE deal funded by Deutsche Bank. In September last year, the two groups announced a restructuring in the funding of this deal.
This was achieved by liquidating the initial structure and paying off all the debt due to Deutsche Bank. That left Peu with an unencumbered 16,1% stake in Super Group. This is quite an achievement in the BEE world where many financial structures are drowning in debt.
Dheven Dharmalingam is chief financial director with two other black people - Malungani and Busi Tshili (the only female) - serving as nonexecutives on a board of 10.
Peu's involvement with the transport and logistics firm began when the duo partnered to create what Super Group describes as "a truly SA fleet management company by educating and empowering previously disadvantaged individuals".
Imperial is one of SA's largest transport players where transformation at board level is well advanced. With such black nonexecutives as Max Sisulu, Popo Molefe and Valli Moosa, Imperial must pride itself on being one of the biggest winners in the scramble for ANC comrades in the BEE landscape.
However, taking a look at other pillars of empowerment shows a disturbing picture: the giant is reversing.
Imperial lost points on many elements of broad-based BEE.
It may have accelerated on ownership and skills development, but that is overshadowed by poor employment equity, black management, procurement and socioeconomic development scores. Women directors are also in short supply.
That aside, Imperial has come a long way. In 2004 it scored 25%, putting it in the 64th position with Super Group, then ranked 162nd, getting a paltry 7%.
However, some firms in this sector remain pedestrian. Trencor, Wesco and Metair Investments all fared badly.
Shareholders of Cargo Carriers, which languished at 188th position in 2007 with a mere 2,6%, due to its failure to supply the required data, must be impressed with its long overdue improvement in TEC rankings.
This year, Cargo is 62nd overall and third in the sector. With 10,5% on skills development, it has progressed on this front.
Remgro-held Dorbyl, fourth in sectoral rankings, appears ready to shift to the next gear. Notwithstanding the fact that it came from a low base, this year's total score of 36,1% heralds its arrival in the BEE space.
At this rate, black equity sale - within the scope of broader transformation - seems imminent.
Despite a battered corporate image, earned during ex-CE Bill Cooper's tenure, Dorbyl now appears poised for the road to BEE.
