South Africas Oceans Economy : London

Investment Seminar

largest island on earth with

oceans on all sides:

total of 54 countries of which

39 (72%) are coastal or islands

coastline of 31,000 km

inland waterways of 300,000

square kilometers

seaborne trade volume 91%

Trade dependent GDP (eg RSA:

58% of GDP comes from trade)

Low Intra Continental Trade

Substantial Resources both on

land and offshore in particular
Oil and Gas

Growth Market:

Population to double by
2030

GDP to double between

2010 and 2020

Maritime Activity along the African Coast

South Africas is strategic location for many trades (East West, South South; North - South, even the last stop
before Antarctica)

B. Understanding SAs Maritime Zones & Interests: The Extent of

SAs reach

National Transport Policy Context

Our Maritime Policy and Mandate rooted on the White Paper on National Transport

Vision
v Support Government Strategies for Economic and Social Development whilst being
Environmentally and Economically Sustainable

Maritime Policy Imperatives and Goals Articulated as follows:

v Develop Maritime Awareness
v Create and foster economic environment for the Maritime Transport to enable competition
with other nations

v Contribute to the release of the full potential of the Maritime Industry

v Modernise SA Shipping Administration

CONTEXT

Growth in GDP and job creation potential of the oceans is

driven by 9 main sectors
GDP, R billion
2010

Jobs, 000

2033

CAGR, %

2010

2033

Marine transport and manufacturing

16

42-61

6%

15

40-56

Tourism

15

25-35

4%

90

150-225

Offshore oil and gas

11-17

9%

0.4

0.8-1.2

Construction

20-21

4%

162

390-407

Renewable energy

14-17

25%

0.9-1.1

Fisheries and aquaculture

10-16

4%

30

170-250

Communication

7-10

4%

19

35-52

Desalination

0.1-0.1

1%

1.6-1.6

Marine protection services

0%
-

54

129-177

316

788-1,004

Total

Operation Phakisa Overview

Marine Transport and Manufacturing

v

Ship building, Ship Repair in particular offshore structures, Boat Building, Component Manufacturing

Shipping Transport Services, in particular the growth of South African Registered Ships

Other services associated with Shipping Transportation, eg bunkering services, ship to ship transfers,

casualty

response, etc

Port development and industrial zone adjacent to the port.

Additional areas include

v

Earth observation and satellite technology;

Scientific surveys to support Marine Spatial Planning;

Skills development in particular seafaring skills and capacity building.

Marine Research

3-FEET PLAN

Summary of Maritime Transport and Manufacturing Lab

A Infrastructure and operations

Create supportive funding and revenue

model

B Skills and capacity building

9 Train 2,550 TVET College graduates
on an 18-month Workplace-based
Experiential Learner Programme in
scarce and critical trades over the 5
year period

Establish purpose-built oil and gas

port infrastructure by appointing
Facility Operators Saldanha Bay

Align on Implementation of government

policy

Prioritise Transnet and TNPA funding

allocation towards marine
manufacturing

Maintain and refurbish existing

facilities

Unlock investment in new and

existing port facilities

Implement Strategic Prioritised

Project Richards Bay

Implement Strategic Prioritised

Create dedicated Occupational Teams

10 for MTM Sector (professional, trades,

operators and seafarers)

Establish trade RPL, CBMT or Centres

of Specialisation in Saldanha Bay and

11 Richards Bay

Train 18,172 learners as artisans,

semi-skilled workers and professionals

12 over the next 5 years

Increase usage of ESSA system and

targeted career awareness services as

13 a high value recruitment tool for MTM
Increase capacity to develop skills for
~1,200 ratings and ~720 officers per
year

C Market growth

Create and implement a public

15
procurement and localisation
programme

Develop a strategic marketing

16 campaign and value proposition for

target markets

Propose inclusion of preferential

17 procurement clause in the African

Maritime Charter

Support local registry of vessels

through incentives and

18 encouragement of using SA-flagged

ships for cargo and coastal
operations (based on United
Nations Conference on Trade and
Development and African Maritime
Charter guidelines)

14

Projects East London

DOT is accountable to Presidency

DOT is the implementer

9

Key Investment for Marine Manufacturing

Ensure the Growth of SA Ship Register: At least 40% of SA Trade to be carried by SA Ships
South Africa exports over 150 million tons of bulk cargoes and imports more than 20 million tonnes
of liquid cargoes. Further, there are more than 3 million tons of coastal cargoes and a potential of
attracting ore cargoes from land transportation to seaborne transport.

Ensure Marketing of SA Seafarers as well as other Maritime Skills: Potential for Foreign Capital
E
a
r
n
i
n
g
s
There is a need to actively market SA Maritime Skills. It would be ideal to have a Maritime Desk in
s e l e c t e d
S A
M i s s i o n s
a b r o a d

Ship B uilding, Ship Repair and Marine Manufacturing

SA Shipbuilding and Repair Capacity can largely supply the boating requirements by African
Countries. There is a need to position SA industries in the African Markets. All the Oil Producing
nations in the continent have a big need for the ships that are currently being produced in the
c o u n t r y ( t y p i c a l l y w o r k b o a t s , t u g s , e t c . )
SA i s e n g a g i n g i n t h e f l e e t re c a p i t a l i s a t i o n p ro g ra m fo r 7 0 0 f i s h i n g ve s s e l s

A s s o c i a t e d S h i p p i n g T r a n s p o r t A c t i v i t i e s
SA is ideally positioned to provide halfway support activities, eg bunkering, crewing and crew change,
o f f s h o r e
s h i p
t o
s h i p
t r a n s f e r s

10

Key Projects for Marine Transport Manufacturing

Project

Quantified Requirements

Level and Investment

Required including
comments

Recapitalization of 800
fishing vessels

800 fishing vessels of various

types and sizes up to 130metres

Investment and partnership

opportunities in vessel building

Transportation of SA
Cargoes using SA Vessels

60 million tons annually of dry

bulk and 5 million tons of liquid
bulk

There are various vessels

required to support the SA
trade

Construction of 2
Emergency Towing Vessels

2 Vessels at an estimated cost of

R1,2 billion

Investment opportunities in
partnership with SA
Development Bank

Employment of SA
Seafarers

Provision of good quality

seafarers at competitive seafarer
wages

This is an opportunity to grow

an alternative sourcing
destination for seafarers

Create offshore logistics

base

Construction of Logistics Base

Partnership opportunities with

our State Owned Energy
Company.

Providing Cabotage
Services

Shipping of coastal cargoes

requires investment in SA

Investment on cabotage
vessels

11

Other investment Opportunities for Marine

Transport Manufacturing
Project

Quantified Requirements

Level and Investment

Required including
comments

Offshore Ship to Ship

Transfers

Investors to cultivate the

market

Development funding, market

research

Development of back of Port

Infrastructure for logistics
management

The IDZ provide for ideal

manufacturing and value
added services

Development funding and

market research

Development of Small
Harbours

SA has 12 small harbours to be Development funding, Fishing

refurbished and is rolling out a and Tourism Infrastructure
new small harbour
development program

12