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Thursday, March 20, 2014

Redisa explains why so slow

Hermann Erdmann
“I HAVE a thousand tyres waiting for collection — when will Redisa come to fetch them?”
This is the first question the CEO of the Recycling and Economic Development Initiative of South Africa (Redisa), Hermann Erdmann took during a recent Redisa report-back session in KwaZulu-Natal.
A former tyre dealer himself, Erdmann explained that due to the court delays caused by the tyre dealers, Redisa had only officially started in July 2013 and was now less than a year into its five-year plan, starting with the appointment of tyre collectors and depot operators in Gauteng, the Western Cape and KZN.
He said a depot costs between R3 million and R5 million to set up, and Redisa needed 80 across South Africa.
One of these was to have been at Cato Ridge, but the company owning the site is not 51% black-owned and Redisa told Witness Wheels the management team was this week looking for a new site to build a depot on.
Erdmann said thousands of waste pickers across the country were the first link in Redisa’s recycling chain and the challenge now was to educate them not to burn tyres for the 80 cents per kilogram they can get for the steel, but to sell the tyres to Redisa. “If you are not placing money at the bottom and pay the garbage collectors, recycling won’t work,” Erdmann told the tyre dealers.
Meanwhile, Redisa is also advertising for black hauliers, or haulier companies that are 51% black-owned, and based within a 100 km radius of Redisa’s depots. Erdman said 669 transporters were already registered, but more was needed to service 853 dealers by the end of 2014.
This is not exactly what the 1 515 dealers who have registered with Redisa want to hear. Old tyres quickly take up a lot of space, which is why most tyre dealers are still giving away old tyres to anyone who asks. Erdmann actually has no problem with this, as long as the tyres will be turned into something with value or even stacked as retaining walls, instead of being burned.
He told the KZN dealers that about half of the old passenger car tyres in South Africa are currently burned both to harvest the steel and generate heat. This happens especially around industrial cities like eMalahleni (Witbank), which Erdmann said already had “the most polluted air in the world”.
Meanwhile, Erdmann admits Redisa will add to this pollution. He said 70 000 tons of tyres will initially be burned at two cement kilns in the northern Cape and Mpumalanga, neither of which have scrubbers to remove any of the heavy metals a burning tyre releases into the air.
He said studies show 15% more respiratory diseases upwind from tyre burning kilns in Europe. “We don’t want to process tyres this way, but for now, it is the only plan that works.”
He said Redisa plans to have a crumbing plant in place by 2016. Redisa is also applying to re-register as a public benefit company instead of a non-profit organisation, so that mining companies can invest in plants to cut their giant tyres into one-foot square blocks and claim the money back as enterprise development. The tyres used in mines comprise 28% of all the tyres in South Africa.
The other question Erdmann always gets is “where does the billion-rand a year go?”
He told the dealers the amount Redisa collected in levies actually amounted to R620 million a year and precisely because Redisa needed to answer this question, the processing of every cent is audited by three auditing firms — KPMG, PriceWaterHouseCoopers and Ernst And Young.
Erdmann invited any dealer to visit the head office, where a pioneering Oracle system shows virtually in real time where tyres are collected and how Redisa is spending the R2,30 levy per kilogram that it collects on all new tyres sold. “We have to date spent R300 million with R200 million in reserve” he said, adding this reserve will be spent by 2017.
Redisa has also committed R50 million over five years in recycling research, including training of South Africa’s first eight doctorates to pioneer new ways to recycle tyres at Stellenbosch University.
Erdmann said Redisa was very proud of its process to turn waste into worth, saying feedback from other recycling groups shows this process is “changing the way the world see extended producer responsibility”.
Asked what he will do if he does succeed in his personal aim to work himself out of a job in five years, Erdmann said he plans to use the process he pioneered at Redisa to manage any of South Africa’s 37 other waste streams, as SA recycled less than 10% of its waste.
Erdmann invited all tyre dealers to contact Redisa by calling 087 357 3873 or e-mailing info@redisa.org.za.