ENQUIRY NO. LE 0412 TENDERS ARE DUE ON: 16 SEPTEMBER 2013, AT 14:00

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1 ENQUIRY NO. LE 0412 ARCELORMITTAL SOUTH AFRICA LTD INVITES TENDERS FOR THE ROAD TRANSPORTATION OF ARCELORMITTAL S FINAL PRODUCTS FROM ARCELORMITTAL VEREENIGING WORKS TO DURBAN, RICHARDS BAY (EXPORTS) AND SURROUNDING AREAS TENDERS ARE DUE ON: 16 SEPTEMBER 2013, AT 14:00 IMPORTANT NOTICE The Tenders must be deposited in the TENDER BOX (in duplicate) at the under mentioned physical address ArcelorMittal VANDERBIJLPARK Main Entrance (approach from Delfos Boulevard) Directions to TENDER BOX are indicated as such when entering ArcelorMittal Vanderbijlpark Works. Tenders may also be faxed to the official tender fax number: (016) (PLEASE DO NOT INCLUDE A COPY OF THIS ENQUIRY IN YOUR TENDER, ESPECIALLY WHEN YOU FAX YOUR TENDER.) (Also see paragraph 2.1) DATE ISSUED: 22 AUGUST 2013

2 I N D E X PART 1 GENERAL, LEGAL, COMMERCIAL & FINANCIAL ASPECTS INSTRUCTIONS TO TENDERER DISCREPANCIES ALTERATIONS, OMISSIONS OR ADDITIONS CONTRACTUAL / TECHNICAL ENQUIRIES TENDERS SUBMISSION OF TENDER INCORRECT ADDRESS TENDERS TO BE COMPLETED VARIATIONS / QUALIFICATIONS BY TENDERERS / ALTERNATIVE TENDERERS LATE TENDERS LOWEST TENDER VALIDITY OF TENDER CONTRACT PERIOD ESTIMATED TONNAGE PRODUCT ANNUAL ESTIMATED TONNAGE 122,150 TONS PER ANNUM TARIFF RATES PER SITE / BUSINESS UNIT VEREENIGING WORKS - PRODUCT GENERAL REQUIREMENTS SITE VISIT PRICE ADJUSTMENT (ESCALATION) PAYMENT CONFIDENTIALITY DURATION GOODS IN TRANSIT (GIT) COVER PART 2 - SCOPE AND SPECIFICATION OF PRODUCTS ANNEXURE A - OCCUPATIONAL HEALTH AND SAFETY ACT, ACT NO 85 OF

3 PART 1 GENERAL, LEGAL, COMMERCIAL & FINANCIAL ASPECTS 1 INSTRUCTIONS TO TENDERER 1.1 DISCREPANCIES The Tenderer shall check the numbers of the pages before submission of his tender. Should any page be found to be missing or figures or writing be indistinct or any obscurity or doubt arise as to the meaning of any description or particulars of any item or if this document contains any discrepancies or obvious errors, then the Tenderer shall immediately inform the Logistics Procurement Specialist, ArcelorMittal, Vanderbijlpark, (see par. 1.3 below) and have the problem rectified or explained as the case may be. No claim whatsoever will be entertained for errors in the tender price resulting from the abovementioned discrepancies Should there be any contradictions, discrepancies and/or ambiguities between any of the documents or parts thereof embodied in the enquiry documents, this should be pointed out to ArcelorMittal for clarification during the tendering stage, as no claim as a result of such contradictions, discrepancies or ambiguities will afterwards be considered by ArcelorMittal. In the absence of any clarification having been obtained from ArcelorMittal, the tender may be qualified accordingly. 1.2 ALTERATIONS, OMISSIONS OR ADDITIONS No alterations, omissions or additions shall be made to this document, but should it be deemed necessary to do so, then the Tenderer must qualify his tender accordingly. 1.3 CONTRACTUAL / TECHNICAL ENQUIRIES Enquiries or information required with regard to the COMMERCIAL, FINANCIAL and CONTRACTUAL aspects of this enquiry document may be addressed to: Refilwe Palayi: Graduate in Training, ArcelorMittal, Vanderbijlpark Telephone: refilwe.palayi@arcelormittal.com Enquiries of a TECHNICAL NATURE, CUSTOMER INFORMATION AND SITE INSPECTIONS can be discussed with: A. VEREENIGING VAAL WORKS LONG STEEL PRODUCTS Alwyn Van Niekerk Senior Specialist, Dispartch & Planning ArcelorMittal Vaal Works: Address: Mario Milani Road, Vereeniging Telephone: or Alwyn.vanNiekerk@arcelormittal.com 3

4 B. VEREENIGING KLIP WORKS TUBULAR & FORGE PRODUCTS Alwyn Van Niekerk Senior Specialist, Dispartch & planning ArcelorMittal Klip Works: Address: General Hertzog Boulevard, Vereeniging Telephone: or TENDERS 2.1 SUBMISSION OF TENDER The Tender, covering letter and supporting documents shall be submitted to ArcelorMittal in triplicate and in sealed envelopes or parcels on which the name of the Tenderer is not disclosed and shall be marked and addressed as follows: TENDER ENQUIRY NO.0412 FINAL PRODUCTS FROM ARCELORMITTAL VEREENIGING WORKS TO DURBAN, RICHARDS BAY (EXPORTS) AND SURROUNDING AREAS IMPORTANT: PLEASE DO NOT SUBMIT A COPY OF THIS ENQUIRY DOCUMENT The Tender shall be submitted to ArcelorMittal not later than the closing time and date for receipt of Tenders as mentioned on the cover page. 2.2 INCORRECT ADDRESS Any tender inadvertently opened before the closing time and date for the receipt of Tenders due to an incorrect address or marking will not be considered by ArcelorMittal. 2.3 TENDERS TO BE COMPLETED The Tenderer shall submit a complete tender to ArcelorMittal. No additional submission of information pertaining to an incomplete tender will be permitted after the closing date and time. Non-compliance with this pre-requisite may render the Tender liable for rejection. 2.4 VARIATIONS / QUALIFICATIONS BY TENDERERS / ALTERNATIVE TENDERERS The Tenderer shall tender strictly in accordance with the requirements of this Enquiry document, but is allowed to submit in addition alternative tender(s) in which case the alternative Tender(s) shall consist of all the relevant information in order to submit a complete Tender. Where the Tenderer decides to deviate from the conditions and/or specifications of the Enquiry document or in any way qualifies his Tender, such deviation or qualification shall be clearly set out in his tender document, failing which the Tender will be deemed to be submitted unqualified and in compliance with all conditions and specifications of the enquiry documents. 4

5 2.5 LATE TENDERS ArcelorMittal will not consider late Tenders, i.e. Tenders received by the Tender Office, ArcelorMittal Vanderbijlpark, after the closing date and time for submission of Tenders. 2.6 LOWEST TENDER ArcelorMittal does not bind itself to accepting the lowest or any tender, nor to assign any reason for the rejection or acceptance of a tender. No tender shall be deemed to have been accepted unless such acceptance has been conveyed to the Tenderer by notice in writing or by electronic mail from ArcelorMittal. 2.7 VALIDITY OF TENDER Tenders shall remain valid for a period of 120 days from the due date for the receipt of Tenders during which period ArcelorMittal shall have the right to accept a tender without any right of withdrawal on the part of the Tenderer, and thereafter until withdrawn in writing by the Tenderer. The following documents must accompany the tender for company with no vendor number in ArcelorMittal and failure to do so will render the tender incomplete: (i) Company Registration Certificate (CK 1, CK 2) / Certificate of Incorporation (CM 1, CM 46); (ii) TAX Clearance Certificate / SARS Good Standing Certificate; (iii) Registration Certificate at Compensation Commissioner or Letter of Good Standing from Compensation Commissioner W.As. 48) (iv) VAT Registration Certificate (v) BBBEE Certificate of Compliance Should your tender be successful, you will be requested to supply the following additional documents/sign the following documents: (a) Vendor Application Form; (b) PAYE SARS questionnaire (c) 37.2 Written agreement (d) General Conditions of purchase (e) Company letterhead (f) Electronic payment transfer Instruction letter (g) Original Cancelled cheque / Letter from financial institution confirming bank details (h) ISO 9001 Certificate(if applicable) (i) ISO Certificate(if applicable) (j) OSHAS Certificate(if applicable) 2.8 CONTRACT PERIOD The anticipated period of the Agreement will be for a 3-years term to commence on or before 01 November 2013 and to expire by 31 October ESTIMATED TONNAGE THE TOTAL ANNUAL ESTIMATED TONNAGE FOR THIS ENTIRE ENQUIRY Tenderers are to indicate what percentage of the Product Group volume they are tendering for. 5

6 3.1 PRODUCT ANNUAL ESTIMATED TONNAGE 122,150 TONS PER ANNUM TRANSPORT OF LONG STEEL PRODUCTS FROM ARCELORMITTAL VEREENIGING TO DURBAN, RICHARDS BAY (EXPORTS) AND SURROUNDING AREAS ESTIMATED ANNUAL TONNAGE MADE UP AS FOLLOWS: +-63,000 tons per annum From Vereeniging Klip Works / Tubular & Forge products +-29,150 tons per annum From Vereeniging Vaal Works / Long Steel products +- 30,000 tons per annum From Vereeniging Vaal Works /Billets to SSM in Pretoria 4 TARIFF RATES PER SITE / BUSINESS UNIT Tenderers are to tender a rate per ton for all or each individual Product listed below. Tariffs tendered for services should be exclusive of VAT. 4.1 VEREENIGING WORKS - PRODUCT VEREENIGING WORKS VAAL WORKS / KLIP WORKS Estimated annual volumes: +-122,150 tonnes LONG STEEL PRODUCTS The Vereeniging operation comprises of 2 sites namely the Klip Works and the Vaal Works site. The under mentioned products are the products to be transported. KLIP WORKS: VAAL WORKS: TUBULAR AND FORGE PRODUCTS. LONG STEEL PRODUCTS LIKE SPRING STEEL, CHANNELS, ROUNDS, INGOTS, BILLETS, SQUARES, ANGLES, HEXAGONS, 5 GENERAL REQUIREMENTS 5.1 TARIFFS - RATES Tenderers must quote a rate per ton for each of the destinations as requested in the attached rates annexure. The distance is to be measured in a straight line i.e. the way the crow flies from the ArcelorMittal weighbridge to the relevant destination. Tenderers are to provide tariffs for both Tri-Axles and Inter-link trailers and the diesel base price on which the tariffs are to be based August 2013 (R ) per liter. Tariffs tendered must be exclusive of VAT. 5.2 RATE FOR RETURN LOADS/COLLECTION OF PRODUCTS WITH CUSTOMER COMLAINTS Return loads of reject products or customer complaints shall be charged at 80% of the approved rates. Transport costs for the return of products due to transport or packaging related complaints shall be for the account of the Successful Tenderer(s). 5.3 SHARED LOADS Where a load is shared by two or more customers, the rate per additional stop where this stop falls within a radius of 20 km from the previous stop. 6

7 5.4 ABNORMAL LOADS An additional fixed charge of 20% on the actual rate per ton of the normal load will be paid for abnormal loads. 5.5 CUSTOMER COMPLAINTS Where product/material is damaged in transit, the complaint must be brought to ArcelorMittal s attention in writing within 48 hours of the incident so that it may be registered on ArcelorMittal s Customer Complaints System. Failure to report any such complaint shall render the Successful Tenderer liable for damages to the product/material. An ArcelorMittal representative shall together with the Successful Tenderer investigate the complaint to determine the cause thereof. If it is found that Successful Tenderer is responsible for the damage to the product then the Successful Tenderer shall be responsible for compensating ArcelorMittal at the invoice value for the product/material which had been damaged as well as for the onward and return transport cost of the product/material, which is to be returned to the relevant ArcelorMittal Works by the Successful Tenderer. Damaged product/material remains the property of ArcelorMittal and should be returned to ArcelorMittal s premises within 96 hours of the incident/ accident. ArcelorMittal shall be compensated at the invoice value for material that is lost or stolen whilst in custody or under the control of the Successful Tenderer. Once the product is accepted by the Successful Tenderer and placed in the Successful Tenderer area of responsibility, then the Successful Tenderer becomes responsible for any customer complaints that are not related to ArcelorMittal s production processes. All claims are to be settled by the Successful Tenderer within sixty (60) days from date of invoice, failing which ArcelorMittal reserves the right to cancel the Agreement with the Successful Tenderer. If material is not delivered within 7 days of loading at any ArcelorMittal premises then the Manager, Production Planning must be informed of the reason for non-delivery and when the load will be delivered. 5.6 TONNAGES The total estimated tonnage for the entire enquiry is 122,150 tonnes per annum made up as indicated in paragraph 3 above. Please note that these volumes are erratic and not evenly distributed over the year. It is specifically recorded that ArcelorMittal provides no warranties and/or undertakings and that ArcelorMittal makes no representations as to the tonnages available for transport by the Successful Tenderer during the term of the Agreement. It is further specifically recorded that ArcelorMittal can under no circumstances be held accountable for any costs incurred by the Successful Tenderer(s) such as the purchase of equipment in order to give effect to the Agreement. The quantities to be transported and reflected in Enquiry LE 0412 are estimated quantities and are only given as a guide to indicate the extent of the material to be transported which are subject to production volumes, late production, arrival of vessels at the ports, customer orders, etc. The estimated quantities are given without any obligation on the part of ArcelorMittal and the quantities may vary from time to time in accordance with the requirements of ArcelorMittal. It is further specifically recorded that ArcelorMittal can under no circumstances be held accountable for any costs incurred by 7

8 the Successful Tenderer(s) such as the purchase of equipment, etc. in order to give effect to the Agreement. 5.7 INVOICES Tax invoices submitted to ArcelorMittal for payment for services rendered shall include VAT payable separately. ArcelorMittal shall make payment of VAT to the Tenderer simultaneously with the payment for the relevant service. In all instances tax invoices shall be submitted and shall include the Tenderer s VAT registration number. Invoices rendered for payment shall where applicable, be adjusted accordingly. Invoices older than six (6) months will not be paid by ArcelorMittal. It is the responsibility of the contractor to ensure that the correct rate is used on invoices. 6. SITE VISIT Please note that site visits will take place at Vereeniging Works and Klip on 03 September Prospective Tenderers who wish to attend the site visit should make the necessary arrangements with Refilwe Palayi who can be contacted on telephone numbers or ed at Refilwe.palayi@arcelormittal.com by the latest 30 August Only 2 representatives from each company can attend the site visit. Vereeniging Site visit - 03 September 2013: Time: 10:00 am - 11:00 am - Vereeniging Vaal Works 11:00 am - 12:00 am - Vereeniging Klip Works Information that has to be supplied by the prospective Tenderers who wish to attend the site visit is: Name: ID No: Company: Vehicle registration number: All attendees to the site visits must ensure that they have the following: 1. PPE (Personal Protective Clothing) Safety shoes Eye protection Hard hat Ear protection Long pants 2. ID document 3. Driver s licence Please note that one hour should be set aside prior to the site visit for prospective Tenderers who are first time visitors to Vereeniging works to attend an induction program before entering the Works. 8

9 7. PRICE ADJUSTMENT (ESCALATION) 7.1 In order to achieve a win-win situation between the Successful Tenderer(s) and ArcelorMittal the reduction of total cost of the service during the agreement period will be of utmost importance. The parties will re-negotiate tariff rates on an annual basis. Elements which will be used as guidelines during the negotiations will include, but will not be limited to: savings realised between the parties during the previous year as a result of inter alia, increased payloads, shorter turnaround times, extended delivery windows etc.; productivity improvements. 7.2 For the purpose of this tender the following formula will serve as a guideline for future price adjustments: P = PO ( BM ) 100 BMO Where: P = Denotes the revised price. PO = Denotes the original tender price. 20 = DENOTES THE FIXED PORTION OF THE PRICE, WHICH WILL NOT BE SUBJECT TO ADJUSTMENT. (THE FIXED PORTION OF 20% IS THE MINIMUM WHICH IS ACCEPTABLE TO ARCELORMITTAL. TENDERERS SHALL INDICATE WHETHER THEY ARE PREPARED TO ALLOW FOR A FIXED PORTION IN EXCESS OF 20%) BM = The average of the SEIFSA Index for Road Transport, Table L2, for the latest available 12-month period prior to the date of tariff increase. BMO = The average of the SEIFSA Index for Road Transport Table L2 for the corresponding 12-month period prior to the period as referred to in BM. The diesel base price on which the tender tariffs are to be based August 2013 (R ) per liter. 5.1 In the case of fuel price adjustments of more than 10% (increase or decrease), ArcelorMittal will on receipt of a request from the Successful Tenderer, adjust the tariff, provided the application for the adjustment of the tariff is received and proved to ArcelorMittal's satisfaction within 14 days from the date of the official adjustment of the fuel price by the governmental authority concerned. The adjusted tariff will be effective from the first calendar day of the month following the month in which the fuel price adjustment occurred. If the application is received and proved after the 14 days, the adjusted tariff will be effective from the first calendar day of the second month following the month in which the fuel price change occurred. The portion of the tariff that will be subject to diesel price adjustments is 28%. Both parties to an Agreement to be arrived at will have the right to apply for tariff adjustments in terms of clause 7.2 and in the event that ArcelorMittal should apply for such adjustment, the provisions of clause 7.2 will mutatis mutandis apply. 9

10 The tariffs contained in an Agreement to be arrived at will be adjusted if any new statutory tariffs are introduced and/or if any existing statutory tariffs fall away during the term of an Agreement to be arrived at. All requests for tariff adjustments shall be submitted to the Senior Procurement Specialist, Group Logistics, ArcelorMittal. The current designated official is Ria Vermaak and the request can be ed to or faxed to fax number Tel ( or TENDERERS ARE TO INDICATE WHAT PERCENTAGE OF ALL FUTURE COST INCREASES THEY ARE PREPARED TO ABSORB. 8. PAYMENT Payment shall be made on the first day of the second month following the month in which the services were rendered, provided monthly statements of account, shall in all instances reach ArcelorMittal s Corporate Finance, Accounts Payable Department, situated in Vanderbijlpark, not later than the sixth day of the month following the month in which the services were rendered. ArcelorMittal will supply the Successful Tenderer with an Order Number, Load Number and Destination code for the transport. The Successful Tenderer must ensure that the relevant Order Number is reflected on all related documentation, i.e. delivery notes, Invoices, etc. The Successful Tenderer shall ensure that both his and ArcelorMittal s VAT numbers are reflected on all related invoices. ArcelorMittal s VAT number is The Contractor shall ensure that his Vendor numbers are reflected on all related invoices Although the Contractor s vehicles will be weighed at both ArcelorMittal and the Customer s mass-measuring bridge/s, the net mass as determined at ArcelorMittal s mass-measuring bridges shall be used to calculate payment. 9. CONFIDENTIALITY The Tenderer (whether his Tender is accepted or not) shall treat all details in this Enquiry document and his Tender as private and confidential. ArcelorMittal will likewise treat details of the Tenderer s proposals as private and confidential and no information contained in a Tender will be disclosed to third parties. Except as required by law, the parties shall keep confidential, both during the term of the agreement and after its termination, all information relating to the other party procured in terms of the Agreement including, e.g. all processes, methods and techniques, manufacturing, software specification, computer systems and other confidential information in any media used by or the property of the other party and shall make use of such information only for the purposes of the Agreement. 10. DURATION The Agreement(s) tendered for shall be for a period of 3 years and shall commence on 1 November 2013 until 31 October

11 11 GOODS IN TRANSIT (GIT) COVER The Successful Tenderer shall undertake to duly comply with all statutory control measures and applicable regulations governing the transport of the Products, and shall make provision for keeping the Product in the condition it was when received from ArcelorMittal. The Successful Tenderer shall have Goods in Transit insurance cover. Each load will be insured for at least the market value of the product and the cost of insurance is to be included in the transport tariffs. The estimated current value of the products is at R750, (Seven hundred and fifty thousand rand) per load but is subject to change of which ArcelorMittal will inform the Successful Tenderer. 11

12 PART 2 - SCOPE AND SPECIFICATION OF PRODUCTS 12

13 1. SCOPE 1.1. This enquiry specification provides for the transportation of the following products: - Vereeniging Vaal Works Long Steel Products - Vereeniging Klip Works Tubular and Forge Products - Vereeniging Vaal Works - Billets 1.2. The take-over point is the area where the products will be inspected and accepted by both ArcelorMittal and the Successful Tenderer(s), after which it shall be placed onto the Successful Tenderer(s) mode of transport by an overhead crane and/or fork lift which are manned and operated by ArcelorMittal personnel The Successful Tenderer(s) shall supply all necessary transport vehicles, labour, equipment (including dunnage), fuel and other facilities, necessary for the safe transportation of the said products, between the said points The products becomes the Successful Tenderers responsibility, and it shall be the responsibility of the Successful Tenderer(s) to transport the products to ArcelorMittal s customers, using the latest technology, and the products shall be delivered in such a manner that it conforms with all the customer s requirements If the Successful Tenderer(s) decide(s) to change any of the existing systems or methods that are presently being used by ArcelorMittal, then this change shall firstly be accepted by the customer and ArcelorMittal before implementation The Successful Tenderer(s) shall place vehicles at ArcelorMittal s disposal for loading purposes at the ArcelorMittal finishing/loading bays as and when required. ArcelorMittal will have the right to specify dispatch priorities for 100% of the designated number of loads per day within the limits of customer s/port s handling capacity and equipment. If the Successful Tenderer(s) fail(s) to uplift material ready for dispatch on the planning schedule within 72 hours, ArcelorMittal will be entitled to arrange for transportation of such material by means of any other suitable and or available transport. Should the rates of such other transport be higher than those of the Successful Tenderer(s), the difference in transport rates shall be for the Successful Tenderer s account Loading times ArcelorMittal Vereeniging Works The Successful Tenderer(s) shall render the delivery services at ArcelorMittal s Vereeniging Works as follows: Mondays 06:00 am Saturday 06:00 am Saturdays 06:00 am to Sunday 06:00 (dependent on market conditions) Off-Loading Times Almost all customers only off-load on the following days and during the following times (this offloading times are might to change): Mondays to Thursdays: 07:00 to 16:00 Fridays: 07:00 to 12:00 Weekends and Public Holidays: No Off-Loading 13

14 ArcelorMittal Vereeniging Works reserves the right to change the working hours at any time depending on market requirements. The successful tenderer will be notified in writing When the need arises the Successful Tenderer(s) shall make the delivery service available 24 hours per day, 7 days per week to cater for essential ArcelorMittal customer requirements as shall be arranged between ArcelorMittal and the Successful Tender(s) at a rate to be agreed upon. Should the parties fail to agree on such rates, ArcelorMittal shall be entitled to call for open Tenders relative to such transport. Off-loading/slinging of products at ArcelorMittal s customer s premises are the responsibility of the customers and NOT the Successful Tender(s). It is the customer s responsibility to ensure that their employees responsible for slinging/off-loading have the necessary training and are declared competent to do so as required by the OHS Act. Under no circumstances is the customer allowed to pass the responsibility of slinging/off-loading on to the Successful Tenderer(s). 1.8 Estimated tonnages The tonnages and destinations contained in this enquiry are only given as a guide to indicate the extent of the work to be performed. Such estimated quantities are given without any obligation on the part of ArcelorMittal that they will not be varied from time to time in accordance with ArcelorMittal s requirements. The Successful Tenderer(s) shall be obliged to undertake the transportation of any such quantities as may be specified by ArcelorMittal from time to time ArcelorMittal will furnish the successful Tenderer(s) with the following short, medium and long term plans in respect of the estimated tonnages: 12 month plan - at beginning of year 6 month plan - every quarter 1 month plan - every month 1 day plan - every day 2. TECHNICAL SPECIFICATIONS 2.1. LOADING ArcelorMittal will do all the loading of the vehicles. It is the driver s responsibility to indicate the location on the vehicle where the material must be placed, because of the possibility of axle mass overloading; the Successful Tenderer(s) must accept this responsibility TRANSPORTATION / DISTRIBUTION OF THE PRODUCT The Agreement(s) shall be divided into the Product Groups, and the Successful Tenderer(s) shall be appointed to deliver one or more of the Products Groups as stated in 1.1 above VEREENIGING ~ 122,150 TONNES PER ANNUM VEREENIGING VAAL WORKS LONG STEEL PRODUCTS ESTIMATE ±29,150 TONNES. MATERIAL SPECIFICATIONS: LONG STEEL BUNDLES (as well as coils): 14

15 Mass between 1 2 tons Length meters also 13 meters. Overhead crane loading Coils by forklift TECHNICAL REQUIREMENTS: Must tarp when loading not all the material treated only export local not, water is a problem if not treated. All material must be strapped or secured in such a manner as to not damage the material before leaving the loading bay. The use of chains for strapping is not permitted.(uprights also needed chain box when loading coils ) The tenderer(s) must supply a minimum of 60% of their own vehicles and the balance subcontractor vehicles. VEREENIGING KLIP WORKS: TUBULAR AND FORGE PRODUCTS ±63,000 TONNES PER ANNUM MATERIAL SPECIFICATIONS: LONG STEEL BUNDLES: Weight variable per product, large sizes Length variable Only forklift loading TECHNICAL REQUIREMENTS: Tarping required All material must be strapped or secured in such a manner as to not damage the material before leaving the loading bay. No chains to be used on pipes. No Uprights on trailers. Tarping the Tubular and Forge products (pipes) is not necessary The Successful tenderer(s) must supply a minimum of 60% of their own vehicles and the balance subcontractor vehicles. Bulk of the export sizes are from 50 nominal bore (nb) or mm outside diameter (OD). See table below. 15

16 Outside Diameter (mm) Length (metre) Wall Thickness (mm) Description 40Sch Sch Sch Sch Sch SchXXS Sch Sch Sch SchXXS Sch Sch Sch SchXXS Sch Sch Sch Sch Sch Sch Sch Sch Sch Sch Sch SchXXS VEREENIGING VAAL WORKS: BILLETS TO SSM PRETORIA ± 30,000 TONNES PER ANNUM MATERIAL SPECIFICATIONS: BILLETS 120 mm 14m long 1EA =1484 tons (load ± 19 per truck) 140mm 14m long 1EA = 2156 tons (load ± 14 per truck) TECHNICAL REQUIREMENTS FOR BILLETS: All this is on Tri- axles due to the length of material. Normal tri- axle s 28 tons payload. New tri-axles light trailers 32 tons payload. 3 SUCCESSFUL TENDERER S RESPONSIBILITY Once the material/product have been accepted by the Successful Tenderer(s) and put into their area of responsibility, the Successful Tenderer shall then be responsible for any customer complaints that are not related to ArcelorMittal s production process. 4 DELIVERY TO THE CUSTOMER / HARBOUR All the deliveries shall be to the customer s preferences. A Customer File shall be given to each Successful Tenderer which will contain all relevant information. All coils shall be delivered to the customer in accordance with the customer s requirements and ArcelorMittal s minimum standards. Upon delivery to the customer and once the material has been off-loaded, the customer is to sign, date and stamp the delivery note with a Company stamp. Material destined to the harbor/customer must not be warehoused or trailers and truck-tractors swopped as the truck-tractor/horse/cab s registration number is 16

17 required at the harbor. Material uplifted must be taken directly to the harbor. Failure to comply with this requirement will result in breach of the contract. 5. QUALITY CONTROL - ALL PRODUCTS 5.1 CUSTOMER COMPLAINTS When a complaint is registered by one of ArcelorMittal s customers, the complaint must be brought to ArcelorMittal s attention in writing within 12 (twelve) hours so that it can be registered onto ArcelorMittal s Customer Complaint System. Failure to report any complaint shall render the Successful Tenderer(s) liable for all damages to the products in accordance with Clause One of ArcelorMittal s representatives shall together with the Successful Tenderer investigate the complaint to determine the cause for the complaint. If it is found that the Successful Tenderer is responsible for damage to the products then the Successful Tenderer shall be responsible to compensate ArcelorMittal at the invoiced value of the material which has been damaged, as well as for the onward and return transport costs of the product, which is to be returned to the relevant Works by the Successful Tenderer. 17

18 ANNEXURE A - OCCUPATIONAL HEALTH AND SAFETY ACT, ACT NO 85 OF 1993 This Annexure is incorporated in and forms part of the Conditions of the Agreement, setting out the arrangements and procedures agreed to in order to ensure that the Successful Tenderer(s) comply(ies) with the Occupational Health and Safety Act, Act No 85 of 1993, (herein referred to as the Act) as amended from time to time. 1 Should the Chief Inspector give a direction in terms of section 7 of the Act to the Tenderer to prepare a health and safety policy as contemplated in that section, the Tenderer shall within 30 days from the date of Instructions forward a copy of such a policy document to ArcelorMittal and hereby undertakes to display a copy as contemplated in section 7(3) of the Act. 2 The Tenderer shall throughout the duration of the Agreement, provide ArcelorMittal with the necessary information to enable ArcelorMittal to establish the Tenderers compliance with the Act. 3 The Tenderer shall as far as is reasonably practicable comply with the following in the execution of this Agreement: (a) provide and maintain, systems of work, plant and machinery that are safe and without risks to health and safety; (b) institute precautionary measures necessary to eliminate or mitigate any hazard or potential hazard to the safety and health of employees, before resorting to protective equipment; (c) make arrangements to ensure the safety and absence of risks to health in connection with the production, processing, use, handling, storage or transportation of articles and substances, where applicable; (d) establish the hazards to the health or safety of persons attached to any work which is performed in terms of this Agreement, any article or substance which is used, handled, stored or transported. In any plant or any machinery which is used in the Agreement the Tenderer shall further establish precautionary measures to be taken in respect of such work, article, plant or machinery as is applicable in order to protect the health and safety of persons involved during the execution of the agreement. The Tenderer shall further provide the necessary means to apply such precautionary measures; (e) provide such information, instructions, training and supervision as may be necessary to ensure the health and safety of his'-, ArcelorMittal's-, and any sub-tenderer's employees involved during the execution of the agreement; (f) not permit any employee to do any work or to produce, process, use, handle, store or transport any article or substance, where applicable, nor to operate any plant or machinery, unless the necessary precautionary measures contemplated in clause 3 of this Annexure or prescribed by the Chief Inspector, have been taken; (g) implement all the necessary measures to ensure that the requirements of the Act are complied with by every person in his employment or on site of the contract works where plant or machinery is used; (h) enforce such measures as may be necessary, in the promotion of health and safety; 18

19 (i) ensure that work is performed and that plant, machinery or equipment is used under the general supervision of a person trained to understand the hazards associated with it and who have the authority to ensure that precautionary measures taken by ArcelorMittal and the Tenderer are implemented; (j) ensure that all employees are informed regarding the scope of their authority in the execution of the Agreement and in terms of the Act; (k) execute the Agreement in such a manner as to ensure that no person other than those in his or her employment who may be directly affected by the Tenderer's activities, is exposed to hazards to health and safety; (l) ensure that nothing about the manner in which any plant, article, machinery or equipment for use at ArcelorMittal or on ArcelorMittal's premises is erected or installed makes it unsafe or creates a risk to health and safety when properly used; (m) ensure that every employee is conversant with the hazards to such employee's health and safety attached to the work to be performed at ArcelorMittal, as well as with the precautionary measures which should be taken and observed in respect to those hazards; (n) inform ArcelorMittal beforehand of any inspections, investigations or formal inquiries of which he has been notified by an inspector in terms of the Act and of any application for exemption made by him in terms of the Act; (o) inform ArcelorMittal of the occurrence of an incident in the work place or section of the work place where the Tenderer is performing work in terms of the Agreement. 4 The Tenderer shall ensure that its employees and any sub-tenderer's employees comply with the following: (a) take reasonable care for the health and safety of any employee and of other persons who may be affected by the employee's acts or omissions; (b) co-operate with ArcelorMittal or any person designated for this purpose by ArcelorMittal to enable ArcelorMittal to comply with any obligation or requirement to be performed or complied with in terms of the Act; (c) carry out any lawful order given to him or her and obey the health and safety rules and procedures laid down by ArcelorMittal or any person authorised thereto by ArcelorMittal or the Tenderer in the interest of health and safety; (d) if any situation which is unsafe or unhealthy comes to the employee's attention, as soon as reasonably practicable, report such situation to the Tenderer as well as to ArcelorMittal; (e) if an employee is involved in any accident which may affect his or her health or which has caused an injury to him or her, report such incident to the Tenderer as well as ArcelorMittal or anyone authorised thereto by ArcelorMittal as soon as reasonably practicable; (f) not to intentionally or recklessly interfere with, damage or misuse anything which is provided for in the interest of promoting health or safety. 5 The Tenderer hereby confirms that its Chief Executive Officer, as defined in the Act, has as far as is reasonably practicable ensured that the duties of the Tenderer in the execution of the Agreement and as contemplated in the Act, have been properly discharged. 19

20 6 If the number of employees employed by the Tenderer in terms of the Agreement exceeds 20 (twenty), the Tenderer shall within 14 (fourteen) days of the commencement of the Agreement provide ArcelorMittal with full particulars of the safety representatives at the Contract works. The Tenderer shall simultaneously confirm that it complies with section 17 (2) of the Act in the appointment of the safety representatives and that such health and safety representatives received the necessary facilities, assistance and training to fulfil their duties and functions as health and safety representatives. 7 If two or more health and safety representatives are involved in the work covered by the Agreement, the Tenderer shall, within 7 (seven) days from the date of a meeting between such health and safety representatives, send a copy of the minutes of such a meeting, as well as a copy of any recommendation made by the Health and Safety Committee to ArcelorMittal. 8 The Tenderer shall not make any deduction from any employee's remuneration- or requireor permit any employee to contribute towards any payment to him or her or any other person in respect of anything which the Tenderer is in terms of this Agreement, or in terms of the Act required to provide or to do in the interest of the health and safety of any employee covered by the Agreement. 9 The Tenderer shall immediately report to ArcelorMittal any incidents occurring at the place or places where the Tenderer performs any work in terms of the Agreement, in which or in consequence of which : (a) any person dies, becomes unconscious, suffers the loss of a limb or part of a limb or is otherwise injured or becomes ill to such a degree that he or she is likely either to die or to suffer a permanent physical defect or is likely to be unfit for a period of at least 14 (fourteen) days either to work or to continue with the activity for which such employee was employed or is usually employed; (b) an occurrence of catastrophic proportions, as defined in the Act resulting from the use of plant or machinery or from any activity in the performance of this Agreement has taken place; or (c) the health or safety of any person was endangered and where: (i) the uncontrolled release of any substance or pressure took place; (ii) machinery or any part thereof fractured or failed, resulting in flying, falling or uncontrolled moving objects; or (iii) machinery ran out of control. 10 The Tenderer or any of the Tenderer's employees shall not without the consent of an inspector disturb the site at which any incident occurred in which a person died or was injured to such an extent that that person is likely to die or suffer the loss of a limb or part of a limb, provided that such action as is necessary may be taken to prevent a further incident, or to remove the injured or dead or to rescue a person from danger. 11 The Tenderer shall in no way whatsoever victimise any of its employees because the Tenderer suspects or believes, whether or not the suspicion or belief is justified or correct, that one of his employees has given information to ArcelorMittal in respect of any matter concerning the health and safety of employees. 12 If an inspector of the Department of Labour wishes to perform any of his or her duties in terms of the Act at the Contract works, the Tenderer shall at all times provide such facilities 20

21 as are reasonably required by the inspector to enable him or her and his or her assistant (if any) to perform effectively and safely his or her function under the Act. 13 The Tenderer or any of its employees shall not interfere with or remove any blocking, bar, barricade or fence placed on the instruction of an inspector in terms of the Act. 14 The Tenderer shall forthwith bring to the attention of ArcelorMittal the contents of any prohibition, direction or notice given by an inspector to the Tenderer or a sub-tenderer or any of the Tenderer's or sub-tenderer's employees in terms of the Act. 15 The Tenderer shall fully co-operate in respect of any investigation or inquiry by an inspector and provide all necessary assistance, as envisaged in section 34 of the Act in the event of such an inspector investigating or inquiring into any matter related to the Tenderer's or sub- Tenderer's execution of the Agreement. 16 The Tenderer shall not disclose any information concerning the affairs of ArcelorMittal without the prior approval of ArcelorMittal, which shall not be unreasonably withheld. 17 The Tenderer shall not: (a) in any record, application, statement or other document, referred to in the Act, wilfully furnish information or make a statement which is false in any material respect; (b) hinder or obstruct an inspector in the performance of his or her functions; (c) refuse or fail to comply to the best of his or her ability, with any requirement or request made by an inspector in terms of the Act; (d) refuse or fail to answer to the best of his or her ability to any question which an inspector in the performance of his or her functions in terms of the Act, put to him or her; (e) give himself out as an inspector; (f) tamper with or discourage, threaten, deceive or in any way unduly influence any person with regard to evidence to be given in respect of any investigation in terms of the Act; (g) prejudice, influence or anticipate the proceedings of any finding or inquiry in terms of the Act; (h) tamper with or misuse any safety equipment installed or provided to any person by ArcelorMittal or the Tenderer; (i) fail to use safety equipment at any work place in terms of the Agreement or in the cause of his or her employment or in connection with the use of plant or machinery; (j) wilfully or recklessly do anything at a work place in connection with the use of plant or machinery in terms of the Agreement which shall threaten the health or safety of any person. 18 Words used in this Annexure shall have the same meaning as words defined in the Agreement. 21