Maritime and fishing

New opportunities are opening up in manufacturing and servicing.

Gemini Marine

Boats built in Cape Town are collecting astronauts in the waters of the Gulf of Mexico after they splash down. Epping-based Gemini Marine has signed a deal with Elon Musk’s SpaceX to supply recovery boats for astronauts returning from the International Space Station. A selection of international clients includes the UK Ministry of Defence, the Royal New Zealand Navy, the United

Nations and the Singapore Special Forces.

The South African Boat Builders Export Council (SABBEX) reports that the sector is particularly strong in catamarans and yachts but a growing variety of boats are being built. These includes custom and semi-custom built monohulls, powerboats, commercial vessels, sport-fishing boats and inflatables.

Two Oceans Marine manufactures both power and sailing catamarans in 4 500m² of factory space on two different premises, in Cape Town harbour and in Paarden Island. The company runs an internship programme with False Bay TVET College.

Damen Shipyards Cape Town is building three inshore patrol vessels for the South African Navy, the first of which will be delivered in 2021.

The vessels will be used to secure South Africa’s waters against threats such as illegal fishing, smuggling and piracy.

Since 2014, investments worth R30-billion have been made into the sector and created more than 7 000 direct jobs (Invest Cape Town). The

Western Cape Department of Economic Development and Tourism (DEDAT) reports that in 2016 the oil, gas and marine sector supported 8 320 jobs and contributed R1-billion to the province’s gross value add.

The Western Cape has enthusiastically embraced the national strategy called Operation Phakisa (“hurry up” in Sesotho). The 2033 target is for the share of the Maritime Economy to South Africa’s gross domestic product (GDP) to grow by 250% (and perhaps as much as 350%) compared to its current value, to a figure between R129-billion and R177-billion. A million new jobs are expected to be created.

The construction of an offshore supply base in the Port of Saldanha on a dedicated quay is an excellent example of the impact of Operation Phakisa. Saldehco, a privately-owned South African special purpose vehicle with foreign investors, submitted a tender in 2016 through the Transnet National Ports Authority (TNPA) to build this infrastructure to support the growing oil and gas industry.

Large industrial operations already exist at Saldanha and the Port of Saldanha Bay is the portal for the export of South Africa’s iron ore. The Saldanha Bay Industrial Development Zone (SBIDZ) is becoming a hub for a range of maritime repair activities and oil rig maintenance and repair.

The National Department of Trade, Industry and Competition (dtic) and the DEDAT have collectively invested R500-million

SECTOR INSIGHT Cape Town boats are involved in space travel.

in core infrastructure and a lease agreement has been signed with TNPA. The SBIDZ fits neatly into two overarching visions: Operation Phakisa and Project Khulisa, the targeted growth strategy of the Western Cape Provincial Government which includes servicing and repairing of oil rigs as a priority.

The marine transport committee of the South African Oil and Gas Alliance (SAOGA) is preparing South Africa to reap the potential of the sector. It has developed 18 initiatives across three categories: infrastructure and operations, skills and market growth.

During the Covid-19 lockdown, the Port of Cape Town did not shut down for a single day. Working teams were reduced and reallocated but the vital work of loading and unloading supplies was done. A task force with a wide range of representatives from government, business and port authorities is working on reducing congestion at the harbour. A renewed focus on ship repair through facilities such as the Sturrock and Robinson drydocks is on the cards for the Port of Cape Town, which has a diverse offering through its Container Terminal, Multipurpose Terminal, Liquid Bulk Terminal and Fresh Produce Terminal.

Fishing

About 310-million kilograms of fish is consumed annually by South Africans, of which about half is caught locally. The main fish are hake and sardines and almost all of that is harvested in Western Cape waters by deep-sea trawlers.

The fishing industry earns R3.4-billion in foreign earnings annually and employs 26 500 people across 22 sectors, the main ones being deep-sea trawling and aquaculture (JSE). The aquaculture industry is currently small, but since 2014 investment commitments of about R700-million have been made.

The allocation of commercial fishing rights in 12 sectors that was due to happen in 2020 has been postponed to December 2021. It is likely that the quotas of larger fishing companies will be reduced in favour of small-scale fishing companies.

There have been several changes in ownership in the fishing industry, most likely linked to the upcoming determination of new fishing rights in which black shareholding will be a factor. The acquisition by blackcontrolled Sea Harvest Group of Viking Fishing is part of a larger trend.

Tiger Brands has unbundled its 42% stake in Oceana Group. Oceana holds the popular pilchards brand Lucky Star, which enjoys 80% of market share in South Africa, and has the highest market value of fishing companies in South Africa. The Oceana Group recently purchased Foodcorp’s fishing rights and a US fishmeal and oil company, Daybrook. ■

ONLINE RESOURCES

Lawhill Maritime Centre: www.lawhill.org Operation Phakisa: www.environment.gov.za SABBEX/Boating South Africa: www.boatingsouthafrica.co.za SA Deep Sea Trawling Industry Association: www.sadstia.co.za Saldanha Bay Industrial Development Zone: www.sbidz.co.za Lawhill Maritime Centre

The Port of Cape Town is investing in future growth

Port Manager Mpumi Dweba-Ketana outlines key areas of focus for building the ship repair and container businesses while improving efficiencies in all spheres.

Mpumi Dweba-Ketana, Port Manager

BIOGRAPHY

The daughter of teachers, Mpumi Dweba-Kwetana, earned a BA, a BED and an HDE as a teacher and an Education Specialist for the Department of Education. Her switch to the maritime industry led to a BPhil in Maritime Economics and an Executive MBA. After working for the Department of Transport, Mpumi was appointed by Transnet National Ports Authority as the first Port Manager for the Port of Ngqura in 2012. She took up the Cape Town post in 2017. What is the role of the Port Authority? Our role is to make space available for the use of terminal operators. We are a landlord in that we give facilities and infrastructure to people to operate those facilities. We have 11 terminal operators altogether.

Please tell us how Covid-19 affected the port. When Covid started we all put plans in place, but even at Level 5 we were not closed because the Container Terminal, the Multipurpose Terminal and the Liquid Bulk Terminal all stayed open because they provide essential goods and services. We applied business continuation plans and we did not close for any single day for business.

Were staff affected? A first fatality unfortunately happened outside and we saw infections start to increase, also in berthing services. We reduced the team from four to two and also reduced the number of gangs. Most unfortunately the increase in cases in Cape Town came among the skilled workers you cannot easily replace. Among operators, we were down from eight gangs to two.

What steps were taken to overcome the challenges of Covid-19? From the month of June, we started to see the system stabilising, employees were either coming back from quarantine or isolation. We reviewed our strategy with regard to those with co-morbidities. It was decided that those below the age of 60 who wanted to come back to work could after a visit to the clinic to determine their fitness. We must acknowledge the role that was played by the Port of Durban. When we did not have operators, 20 operators flew in from Durban. We treat them as warriors, and their bravery was really appreciated.

Have you been able to ramp up operations again? All terminals are operating now, and we are back to at least 80% regarding staff. Staff over 60 with co-morbidity still can’t come to work.

What degree of coordination is required to run a successful port? We have virtual meetings with all terminal operators where we discuss the issues. Any likely challenges can be brought to our attention by local and provincial government or even the business chamber. We are able to hold each other accountable.

In 2019, multi-sector engagement began on congestion issues. How is that progressing? We are making good progress. We are working closely via task teams on operational efficiencies. This includes truck staging. A truck booking system introduced by the Port of Durban has reduced the number of waiting trucks. The exciting news is that that programme is coming to Cape Town. We need to look at congestion holistically. A lot of variables need to be aligned. Operating hours, starting from the warehouse, the truckers and the terminals, all should be more synchronised. We have identified a space which will be a short-term truck-staging area. In the longer term we are looking at a permanent holding area.

What are your top priorities? There are three main priorities: ship repair, the Container Terminal and investing in our fleet. We will complete capital investment in ship repair of about R1-billion. We are looking at civil and mechanical equipment, and electrical infrastructure. We aim to invest in our marine fleet. Some of our fleet is 40 years old, so we are looking at tugs (we aim to have three 70-ton tugs, in total we will have five tugs) and also in our work boats and our launches. We are going to procure a helicopter in order to improve efficiencies. We have a phenomenon of high swells of about 4-5m so it is difficult for the pilot boat to navigate. Improving the Container Terminal is another priority.

What is required to be a world-class port? We need to work on the building blocks. The plan is that ships do not even go to the anchorage, the pilot goes out and then the pilot brings the ship alongside. We don’t want them to wait. An investment plan is in place. A maintenance strategy must ensure that operators are fully operational. A critical aspect is people: you need a highly efficient work force that has embraced a culture of continuous improvement. When that ship is alongside, they are hungry to service it.

Where does the Port of Cape Town fit in with the country’s port strategy? We have eight commercial ports in South Africa and we must support each other. We can support the Port of Saldanha in terms of the oil and gas sector, for example, but we see ourselves playing predominantly in the container space. We want to strengthen the quayside to expand from one-million TEUs to 1.4-million TEUs (twenty-foot equivalent units).

We also see exciting opportunities in ship repairs. Sturrock Dry Dock is one of the biggest facilities in the SADC region and we want to draw more vessels to it. There could be 2 000 people employed on a ship. ■