The ATL's Role in Todays Business Environment

Introduction
What is the role of an Accredited Test Laboratory (hereafter ATL) in todays business environment is an
important question when it comes to safety specifically, but also how it directly affects the future of
predominantly the Energy Sector and supporting Businesses in SA. In this paper various aspects
will be discussed relating to answering this question. How ATL's were established, the ATL's defined
role, past, present and future, an inside look from the ATL's perspective, where we are in terms of Customer
Needs and the Energy sector, as well as how the End User will be affected will be discussed and ultimately
the way forward.

A brief History
Under the World Trade Organisation as in early as 2002, no Regulatory Requirements may existed in a Standard.
In 2003 Regulatory Requirements had to be removed from the Standards including SANS10108.
The solution to this problem was to create a supporting document (ARP0108) to the SANS10108 that must
be read in conjunction with the SANS10108 document. The Department of Labour (DOL) and the Department of
Minerals and Energy (DME) enforced this document as the mandatory Legal Certification Requirements for Hazardous.
Locations / Ex equipment. SANS10108 is referenced in the Mine Health and Safety act (MHSA) and also the
Occupational Health and Safety Act (OHSA). Ultimately due to possible safety risks in the Hazardous Locations
environment together with the DMR, DOL and SANAS regulations ATL's were established.

The ATL's defined role

The SANAS: R03-08, SANAS: PM01-08 as well as the ARP0108 and SANS10108 clearly defines
an ATL and an Accredited Body. The rhetorical question that must be asked is whether this definition
is still the same today and or what this definition might be in the future... The definion clearly describes that
an ATL is accredited by an Government Endorsed Accreditation Body and approved by the relevant
Regulators to carry out tests specified in the standards and to then issue Certificates for
Explosion Protected Apparatus (EPA) indicating that that these apparatus complies with safety
requirements and any other requirements of the relevant Regulators. There are examples today where this
definition is not enforced. Are we heading towards a crash in this regard and are we forgetting the
most important aspect which is safety?

An Inside Look. (ATL's Perspective)

When we compare International Certification vs Local Certification there are specific
differences which is directly impacted by Pricing, Costs Incurred, Lead times etc. These might seem
subtle, however the Local ATL is drastically affected by these differences in methodology. When we look
at the typical Certification Process and the infrastructure of how successful ATL's are set up we
ask the question, are we heading towards a future where many of these crucial testing and
evaluation steps are being removed form the process, thus becoming ''Ice Cream Truck'' Certification in
which no decent Equipment is needed, no Accreditation is needed, no Regulatory Requirements
are needed and ultimately paying a fee for a piece of paper that satisfies the End User.
Currently in the Local Market minimal Supplementary's / Revisions are conducted due to a lack of Inspectors
in the field by the Regulators, Certification Bodies does not have access to experienced Auditors,
fraudulent Certificates are being issued, ATL's are splitting up and or closing down, Certification without
Accreditation and or Regulator Approvals are being conducted and Product Suppliers are inflating Certification
Costs to the End User to name a few. It begs the question: Is the industry holding the ATL's at ransom or is it
the other way around?
Where are we?
There are many Global and Local influences that affect the Industry which has a major impact on Local
Businesses. The question we ask is, is there money in the Country? The answer is that Households and
Individuals as well as the Government does not have any funds available, however based on stats, Businesses
have in the excess of 800 billion rand available. The issue at hand is that none of these Businesses invest
because of the current Economic trends. Businesses tread carefully and is conservative when it comes to
investing in any form of advancements which further slows down the Economy.

Customer Expectations
What is a Customers expectations in todays Business Environment? In the past it was all about
Fair Pricing and Quality of Service. Due to the fast pace of Technology Advancement as an aspect, the needs
have changed to Pro Active Service, Personalized Interactions and Connected Experiences across
Channels. If we look at the stats in todays environment 84% of Customers say they want to be treated as a person
and not a number, 67% say their expectations for good experiences are higher than ever, 51% of Customers
say most Companies fall short of their expectations for great experiences, 62% of Customers say they share bad
experiences with others, 57% of Customers stopped buying form a Company because a Competitor
provided a better experience, 72% of Customers say they share good experiences with others and
67% of Customers say they will pay more for a great experience.

The Energy Sector

When we look at the Energy Sector it consists of the Transformation Process of Coal to Electricity,
Crude Oil to Liquid Fuels, Coal to Liquid Fuels, and Natural Gas to Liquid Fuels predominantly.
SA imports more than 90% of Crude Oil and the SA fuel production requirements are:
5% from gas, 39% from Coal and 56% from Crude Oil respectively. The majority of Petroleum Products are
refined in SA with 6 major Refineries across SA producing 703 thousand barrels per day.
Crude Oil represents 16% of the Energy Supply and all Crude Oil imported are used for
the transformation for Liquid Fuels to Petroleum of which 11% are exported and only 17% are imported.
Natural Gas represents 3% of the Energy Supply. The Karoo has an estimated 390 trillion cubic feet
of recoverable shale gas, however due to a lack of Regulations, responsible exploration is not viable.
Coal represents 59% of Energy Supply which is mainly Eskom. Coal is the most widely used primary fuel and
represents 40% of the worlds Electricity production. Renewables and Waste represents 20% of Energy Supply.
The Renewable Energy Independent Power Producers Procurement Programme (REIPPPP) 2003,
Future Power Generation, wants Eskom to be responsible for 70% of Electricity and Independent Power Producers
(IPP's) for 30% of the total Electricity production by 2030.

If we look at the Energy Demand is SA it is split up into the Transport Sector representing
27%, Agriculture 2%, Commerce and Public Service 4%, Residential 27% and the Industry
Sector 36%. The Industrial Sector is the focus and when this Sector is split up into sub categories the consumed
source of energy percentages are as follows: Iron and Steel 19%, Chemical and Petrochemical 12%, Non -
Ferrous metals 6%, Non Metallic Minerals 6%, Mining and Quarrying 16%, Food and Tabaco 1% and
Paper Pulp and Print another 1%. 39% is non specified.
The Electricity, Coal, Gas and Petroleum usage percentage split for these sub categories are a follows:
• Mining: 60% Electricity, 38% Petroleum
• Iron & Steel: 36% Electricity, 30% Gas, 34% Coal
• Chemical & Petrochemical: 26% Electricity, 35% Gas, 39% Coal
• Non - Ferrous Metals: 81% Electricity, 3% Gas, 16% Coal
• Non - Metallic Minerals: 12% Electricity, 24% Gas, 64% Coal
If SA would lose the Energy Sector the impact on the Economy is astronomic
SA would lose:
• Approximately 37% of GDP
• Approximately 3 million Jobs
• Approximately 37% of Gross Investment
• Over 60% of Merchandise Exports
• Approximately 60% of Capital Inflows into the Economy via the Financial Account of the Balance of Payments
• About 60% of the Countries liquid Fuel Supply
• Approximately 70% of of the Market Capitalization of the JSE
• Approximately 40% of Direct Corporate Tax Receipts
• Largest Contribution by Value to Black Economic Empowerment

How is the End User Affected?

In todays Business Environment the End User is most certainly affected by all the above mentioned factors
specifically considering when summarized, Inadequate Certification and Non - Compliance.
DMR inspectors issue section 54's for Non Compliance, Inferior Products are being used in the Industry,
Possible Fatals and Accidents might occur, we see no Advancements, ATL's ultimately seize to exist,
we see a decrease in Product Sales to the End User, an increase in Repairs instead of New Product
Development and ultimately possibly, a collapse of SA's economy!

The Way Forward

The Industry is Regulated and Hazardous Locations is a reality and will remain for many years to come.
ATL's protect the Industry by Certifying Products according to well established Standards and ultimately
saving lives which in turn establishes a healthy Market in which Product Supplying Businesses may
operate and be profitable. Without ATL's the Industry will certainly crash and ultimately not exist.
There are many opportunities with Technology advancing at a rapid pace and with Businesses having
funds available in general. Customer Service is key and ATL's must strive to change the Industries current perception
of ATL's in SA. Energy Production forms a major part of SA's Economy and without it SA will have an
non existing Economy. Is the Industry looking for a piece of paper covering their Product or is
Industry truly concerned with SAFETY and Legal Compliance? Will Industry support ATL's and will
the current perception be changed…