G GOVERNMENT
042 - Q&A CEO, Transnet National Ports Authority 044 | 045 - Profile South African Maritime Safety Authority 047 | 049 - Report Piracy threatens SADC economy and lives 050 - Briefings Maritime transformation Budget speech raise concern Shipping sector probe
Edition 2012/13
Port of Durban
041
G GOVERNMENT Q&A, Tau Morwe
VALUE STRUCTURE PREFACE With its Market Demand Strategy, Transnet plans to plough ZAR300 billion into various infrastructure development initiatives. These will transform South Africa and our transport system fundamentally. WRITER
We are looking at the pricing strategy, so
Bianca Wright
that in the future people are able to export manufactured goods at a much more competitive rate than now. And of course, there will be increased job opportunities, with 15.000 direct jobs
According to Tau Morwe, Chief Executive of
in Transnet envisaged as a result of the
Transnet National Ports Authority (TNPA),
development and 368.000 jobs linked to
Our model is a combination of many funding
the capital investment will see the expan-
Transnet’s operations.
mechanisms. ZAR200 billion will be funded
sion of rail, port and pipeline infrastructure
We are working closely with government
internally, and for the rest, Transnet will look
in an effort to meet the growing demands of
on strategic initiative projects to grow the
at private partnerships, and other private
the nation. But apart from that, what is the
economy.
funding in terms of that market.
How do these plans relate to the demands
What are the potential impediments to the
the markets will be placing on South
success?
How would you describe Transnet’s infra-
Africa’s logistics infrastructure?
We need to have the right skills and people,
structure investment?
We worked closely with the University of
and we need to invest in training. If we do not
If you talk of Transnet as a whole, the
Stellenbosch when it came to working out
have the skills then I don’t think we will be
total investment is around ZAR300 billion in
the demand and the factors relating to it.
able to deliver on the strategy.
infrastructure. Of this, port terminals will
Our strategy therefore is aimed at creating
There are other minor challenges such as
see ZAR33 billion in investment, the TNPA
the capability and capacity to handle that
possible delays from environmental issues
will see ZAR47 billion and ZAR200 billion
demand.
and so forth.
value of this strategy and what are the challenges? Morwe explains.
But we are confident that we will be
will be invested in freight rail. How much investment has been funnelled
able to achieve what we have outlined in the
capital will be for replacement but from
into this sector since 2005?
document. We will create the capability, hire
2014 onwards it will focus on creating new
We have spent about ZAR100 billion
the right people and train those that require
capacity.
in infrastructure investment over the last
training.
Initially in the 2012/2013-cycle, the
seven years, so going forward we are What are benefits for South Africa as a
doubling or tripling what we used to spend.
global competitor? In terms of benefits, we will see South Africa
How will these investments be funded?
exporting more coal and iron ore, making us
Given that the demand strategy has only
top exporters in that regard.
recently been launched, we are beginning to see interest from relevant stakeholders.
042 Port of Durban
Port City Publications
G GOVERNMENT Tau Morwe, Q&A
Investing in infrastructure requires investing in people...
Edition 2012/13
Port of Durban
043
G GOVERNMENT Profile, South African Maritime Safety Authority
THE SOUTH AFRICAN MARITIME SAFETY AUTHORITY Pretoria - Headquarters 161 Lynnwood Rd cnr Duncan Street Brooklyn 0181
The South African Maritime Safety Authority (SAMSA) was established under
PO Box 13186 Hatfield 0028
the SAMSA Act 5 of 1998. It is the
T. +27 (0)12 366 2600
South Africa’s maritime interests even
F. +27 (0)12 366 2601
though South Africa has many maritime
W. ww.samsa.org.za
interests that cut across many ministerial
Offices at Ports Richards Bay Durban East London Ngqura Port Elizabeth Mossel Bay Cape Town Saldanha Port Nolloth
authority charged with the promotion of
and departmental jurisdictions. It falls under
The articulation of the maritime policy imperatives and goals are as follows: •
Developing maritime awareness;
•
Assisting in the creation and fostering of an economic environment for the
the ambit of the Department of Transport.
Maritime Transport Industry which will
These interests, rights and obligations are
covered
under
international
conventions to which South Africa is party,
allow it to compete with other nations; •
potential of the maritime industry in
such as the United Nations Convention
South Africa and to the modernisation
on the Law of the Seas (UNCLOS), the Safety of Life at Sea (SOLAS) and other maritime related conventions,
of the shipping administration; and •
international
conventions
security with acceptable standards of
are
employee health, welfare and safety in
administered by the International Maritime
the maritime industry.
Organisation (IMO) which is SAMSA’s major international stakeholder. SAMSA was established on 1 April 1998. Its formation resulted from the 1996 Transport Policy with the vision that South Africa’s Transport must support government strategies for economic and social development whilst being environmentally and economically sustainable.
044 Port of Durban
Ensuring fair labour practices such as employee rights, job creation and
which SAMSA must protect and promote. These
Contributing to the release of the full
As a result of articulations in the Transport Policy, the founding legislation of SAMSA identified three core mandate of the entity as: 1.
To ensure safety of life and property at sea
2.
To prevent and combat pollution from ships in the marine environment
3.
To promote South Africa’s maritime interests
Port City Publications
G GOVERNMENT South African Maritime Safety Authority, Profile
Other mandates recently entrusted into SAMSA are: 1.
The lead executing and implementing agency of the Western Indian Ocean Marine Highway Project. The project’s development objective is to introduce modern aids to navigation systems in the SADC region, such as an electronically supported marine highway to guide ships through sensitive areas.
2.
The Authority charged with administering the Merchant Shipping (National Small Vessel Safety) Regulations, 2007 as amended (“the Regulations”). The Regulations extends SAMSA core mandate to include inland waterways (only waterways accessible to the public) within the Republic. That is ensuring boating safety on our waters.
3.
The Authority charged with implementing and executing the Long Range Identification and Tracking of Ships (LRIT) along the South African Coastline. The long-range vessel monitoring system assists in securing South Africa’s coastal waters in the midst of the rising lawlessness in the high seas with particular reference the worrying surge in pirate attacks along the East African Coast.
SAMSA’s local customers cut across a
SAMSA’s operations are structured by way
couple of industries, with the government
of centres (divisions) which deliver through
being
the following service clusters:
the
major
stakeholder.
These
customers divide into four categories: Corporate Governance and Institutional Government and Public Entities
Positioning cluster
This includes the Department of Transport
In this cluster we have the Centre for
(DOT) as a major stakeholder. There are
Corporate strategy, Risk and Governance,
other institutions and state agencies such
the Centre for Corporate Affairs and the
as Transnet and Petro SA. SAMSA also
Centre for Corporate Services.
has important relationships with regional bodies such as the SADC and the Indian ocean commission. These include the South African Maritime economy, the Maritime industry and coastal communities. Academic Institutions institutions
and
other
professional bodies.
Sea Watch and Response.
SAMSA is governed by a Board made
Maritime Sector Compliance and Enforcement
up of the CEO and six non-executive
This cluster houses the Centre for Ships, the
directors, including a chairperson and a
Centre for Seafarers and Fishing and the
deputy chairperson.
Maritime Sector Development There are two centres in this cluster: the Centre for Maritime Industry Development
SAMSA Staff
and Economic Analysis, and the Centre for
SAMSA continues to make significant
Maritime Excellence.
investments in it’s human capital.
Edition 2012/13
Tsietsi Mokhele SAMSA CEO
Centre for Boating.
SAMSA has partnerships with research academic
This cluster consists of the Centre for Policy and Regulatory Affairs and the Centre for
Maritime Industry and Clients
and
Maritime Sector Governance
SAMSA’s CEO since 2008 is Commander Tsietsi Mokhele who has spent most of his career in the maritime environment. He started his career in the navy and Transnet National Ports Authority before joining SAMSA.
Port of Durban
045
G GOVERNMENT Piracy threatens SADC economy & lives, Report
PIRACY THREATENS SADC ECONOMY AND LIVES PREFACE
territorial waters - making prosecution a lo-
Navy Chief maritime strategy director,
gistical and legal nightmare.
Bernard Hein Teuteberg, acknowledges the problems of Piracy. Plans
Harsh coastline
to put safety measures in place being
University of South Africa associate profes-
worked on together with SADC and
sor Department of Criminology and Security
Government to safeguard sea routes.
Science Henri FouchĂŠ said South Africa has a
WRITER Nicola Jenvey ILLUSTRATIONS acm + Daniel Ting Chong
No longer a mythical or far-off problem, piracy along the African coastline has become significant enough for the South African navy to take an active role in countering the threats its poses. The International Chamber of Commerce International Maritime Bureau annual report 2011 stated that in the decade to 2007, only 23% of global piracy attacks happened along the African coastline. By 2008 this figure had risen to 60% and in 2011 the region accounted for 67% of piracy attacks - or 293 of the 439 reported incidents. Significantly, 237 of the African attacks were attributed to Somali pirates and effective June 2012, those pirates held hostage 12 vessels and 178 people. Legally piracy can only occur on the high seas or outside any state jurisdiction and thus cannot happen in ports, harbours or
Edition 2012/13
harsh coastline that offers no safe harbours for pirates. South Africa, he noted, also benefited from strong law enforcement and an efficient criminal justice system. However, this did not preclude our country from entering into the fray in fighting African piracy. In March 2012, the South African navy chief maritime strategy director Bernhard Hein Teuteberg said the navy was prepared to deal with the threat of piracy moving south towards South Africa. According to him, fighting pirates should be a collective Southern African Development Community (SADC) security issue. In this light, he proposed a maritime zone and regional maritime domain zone centres to jointly exchange information. His ideas have resonated and since April, information relating to vessels moving around South Africa is being collated in centralised systems as a means for sharing information. Operation Copper Teuteberg added that formalised diplomatic ties between Somalia and South Africa also assist anti-piracy efforts.
Port of Durban
047
G GOVERNMENT Report, Piracy threatens SADC economy & lives
Mozambique, Tanzania and South Africa
International Maritime Organisation (IMO)
Former Defence Minister Lindiwe Sisulu also
have worked together since 2011 to safe-
to develop regional capacity in countering
admitted that Southern African waters were
guard
piracy.
increasingly becoming an attractive alterna-
the
Mozambique
Channel
from
pirates. Operation Copper deploys a frigate
tive to Somali pirates ‘as they try to avoid the
and helicopter, special forces, and a mari-
Pirates moving southwards
clamp-down of various maritime task forces
time squad with Mozambique providing a
The IMO is the United Nations specialised
around the Horn of Africa and the Gulf of
naval base in Pemba and 12 inland control
agency responsible for the safety and secu-
Aden - purely by moving into the largely un-
vessels to protect the lagoon and area
rity of shipping, and the prevention of ma-
protected parts of the Indian Ocean.’
around the base.
rine pollution by ships. Among other things,
Three Tanzanian vessels in the mean-
code signatories promise to conduct shared
Six million tons of oil
time patrol the inshore areas around Dar es
operations in law enforcement and to share
Underpinning the political issues in curbing
Salaam and between Mozambique and
information.
piracy are challenges of a financial nature.
Tanzania, while beaches in hot spots are
The move following Teuteberg’s com-
Attacks off the Tanzanian coast and
patrolled on foot. Local communities are
ments was strengthened by government
northern Madagascar have implications
urged to report suspicious activity.
commitment expressed by International
on global energy supplies: more than six
Two months after Teuteberg’s com-
Relations and Co-operation Minister Maite
million tons of crude oil are transported
ments, South African High Commissioner
Nkoane-Mashabane. She said that South
around South Africa’s western coastline
Zola Skweyiya signed a code of conduct con-
Africa would enhance co-operation with
monthly. The gas fields off Mozambique and
cerning the repression of piracy and armed
SADC neighbours along the Indian Ocean
Tanzania are also vulnerable to growing inci-
robbery against ships in the western Indian
shoreline, specifically Mauritius, Seychelles
dents of piracy.
Ocean and the Gulf of Aden on the country’s
and Somalia, to safeguard the sea routes
behalf. This made South Africa the 19th
from piracy.
signatory to The Code, established by the
Other sectors of the African regional economy are, directly and indirectly, being threatened too. One of piracy’s numerous
where experience meets innovation commercial divers & marine specialists since 1995 The Subtech Group, in operation since 1995, specialises in the provision of world class marine services throughout Sub-Saharan Africa. We are based in Durban with offices in Cape Town, Namibia, Mozambique and Mauritius and have ISO 9001:2008 certification as well as full membership with the International Maritime Contractor’s Association (IMCA). Subtech has a wealth of invaluable industry experience which, together with our extensive geographical spread and range of services, enables us to offer our clients a comprehensive service package. In the words of our clients, the Subtech Group is “intelligent, innovative, willing and fast.” These are the qualities that have ensured long term relationships with our customers. Our comprehensive services cover all aspects of diving and marine related requirements, both above and below water, within the following divisions:
head office Cape Town - South Africa Durban - South Africa +27 (0) 21 506 4940 +27 (0) 31 206 2073 +27 82 619 0113 (24 Hr) +27 82 493 3375 (24 Hr)
Mozambique Namibia tel: +258 84 7199 780 +264 (0) 64 220 297 +264 (0) 8114 69555 (24 Hr) +258 84 3072 990 (24 Hr)
Mauritius tel: +230 (0) 217 5100 +264 81 1459 555 (24 Hr)
info@subtech.co.za | www.subtech.co.za 048 Port of Durban Subtech is approved by the following classification societies:
Port City Publications
G GOVERNMENT Piracy threatens SADC economy & lives, Report
effects is that shipping lines are already rerouting trade lines. The knock-on effect may be increasing costs of transporting goods, which could translate into higher prices paid by consumers. On another level, Fouché estimated the Seychelles economy was losing US$6 million (ZAR50.3 million) annually from its fishing and tourism industries and Kenya US$414 million (ZAR3.47 billion) in trade. Essentially, the government’s actions rather than just words decrying the escalation in piracy along the east African coastline - reflect the extent to which there is commitment to preventing the scourge from drifting southwards and affecting the local economy like it has already done to those in the piracy pathway.
Success story In April 2012 the South African navy played
‘It is also clear the tripartite agreement be-
a key role in a multinational operation that
tween South Africa, Mozambique and Tanza-
saw 12 suspected pirates captured and six
nia and the subsequent deployment of SADC
Sri Lankan hostages rescued off the Tanza-
forces to safeguard our sea lanes is paying
nian coast.
dividends in ensuring the safety of our sea-
The SAS Drakensberg, equipped for antipiracy operations and at the time patrolling
farers and their precious cargoes,’ the statement concluded.
the Mozambique Channel, was assisting the French navy when the pirates were spotted. The earlier search-and-rescue mission for a missing South African yacht shifted to a piracy interdiction operation involving the SAS Drakensberg, the Tanzanian navy, and the European naval units operating off Somalia. A navy statement issued after the incident said the successful operation ‘sent out a clear message that the South African National Defence Force, as part of SADC will not allow illegal activities within the SADC waters’.
Edition 2012/13 FTW0016SP
Port of Durban
049
G GOVERNMENT Briefings
Maritime transformation SOUTH AFRICA
Government has urged the maritime indus-
change was necessary.
try to fast track its transformation agenda,
While some transformation has occurred
by aiming for a target of least 25% black
over the past 18 years, black people are
ownership.
largely excluded from ship ownership, ship
KwaZulu-Natal
MEC
for
Economic
operating, chartering, cargo surveyors, ma-
Development and Tourism, Mike Mabuya-
rine tally and port equipment. – (BW)
khulu, told delegates at the Umyezane
Source: Skills Portal / www.skillsportal.co.za
Broad-Based Black Economic Empowerment Conference and Business Awards in Durban, which took place in March 2012, that these targets should be reviewed regularly. He says it is important that there is a continuous increment in numbers of black South Africans entering this particular sector. Mabuyakhulu pointed out that the foreign nationals dominate the industry and that
30 25 20 15 10 5 10 years
20 years
30 years
40 years
50 years
Shipping sector probe DURBAN To create a more sustainable maritime industry,
the
South
African
Maritime
Safety Authority (SAMSA) has commissioned a study to create a coherent picture of the sector’s size, scope, challenges and investment needs. A report by Business Day indicated that the industry has been shrinking for the past 30 years ‘in the absence of long-term planning and unattractive maritime policies’. SAMSA, the sector’s regulator, expressed concern about the return on investment in
Budget speech raise concern
The EMC, a section 21 company, was
an industry that has benefited from gov-
SOUTH AFRICA
launched as a joint initiative between Eco-
ernment investment initiatives. Challenges
nomic Development Unit and the Maritime
included lack of coherence in terms of man-
Industry stakeholders in 2009. It aims to
date across government departments as
support the growth of the Port of Durban
well as legislative and regulatory hurdles.
Finance Minister Pravin Gordhan’s announcement that as of October 2012 a duty of 10% will apply to motorboats and sailboats longer than 10 metres was met by concerns during the 2012 Economic Outlook for the Maritime Industry. Attendees of the seminar, hosted by the eThekwini Maritime Cluster (EMC) in partnership with Trade and Investment KwaZuluNatal (TIKZN), are worried about the implications. Guest Speaker Ian Anderson from Grindrod Asset Management said: ‘This will affect the maritime industry. We are aware that this is targeted at the wealthy, however, it will impact on the customers’ affordability.’
050 Port of Durban
and the associated maritime business com-
In June 2012, SAMSA organised a confer-
munity, so that they function as efficient
ence dealing with these and other issues.
facilitators of trade that support economic
Representatives from a cross-section of
growth and job creation.
the maritime industry, including shipping
Noma Sokhela from the Municipality’s
lines, fishing companies, oil and gas players
Economic Development Unit said: ‘The EMC
attended the events, as well as service pro-
continues working with the industry and
viders, financiers, legal advisers and state
other government departments and agents
policy makers. – (BW)
in support and development of the maritime
Source: i-Net Bridge / 4 June 2012
industry. As a result a Provincial Maritime Cluster will be formed by the KZN Department of Economic Development and Tourism.’ – (BW) Source: http://www.durban.gov.za
Port City Publications