Double digit increase in maritime sector budget allocation is a sign of Government commitment

Pretoria: 03 June 2016

A double-digit increase in the budget allocation by the Department of Transport for maritime sector development in the 2016/17 financial year is yet another signal of Government’s commitment and determination to strengthen focus on the important sector of the country’s economy.

In her budget vote for the 2016/17 financial year presented to Parliament recently, Minister of Transport Ms Dipuo Peters said that the maritime sector’s budget allocation had been raised from R111-million in the previous year to R122-million in the current, an increase of 10%.

This was more than twice the increase the Department of Transport received for its total budget, which rose about 4% from R53.5-billion in the previous year to R56-billion in the 2016/16 financial year.

Naturally, the bulk of the department’s budget allocation went to road transport (R24.7-billion), rail transport (R19-billion), public transport (R11.7-billion), with civil aviation and maritime allocated R253-million and R122-million respectively.

The figures reflect increases of approximately nine (9) percent for road transport, four (4) percent for rail transport, two (2) percent for public transport, 69% for civil aviation and 10% for maritime sector.

According to Ms Peters in her budget vote on May 10, the double-digit budget increase in the allocation to the maritime sector reflects the increasing focus the country now has on development of the sector for transformation and formal integration in the main economy.

She noted specifically the role played by the South Africa Maritime Safety Authority (SAMSA) in this regard and whose visionary and pioneering role over the last few years had contributed immensely to among others things, the launch of Operation Phakisa: Ocean Economy and the latter whose six labs are currently at work developing focused strategies for rapid development of the sector.

Ms Peters told Parliament that: “Ladies and Gentlemen, fellow South Africans; in the last two years the country increased its focus on the opportunities our more 3000km of coastline provide when Operation Phakisa; Oceans Economy was launched.

“This then called for the DoT and other departments to align strategic, legislative, policy and regulatory frameworks. This was done both for governance and economic reasons.

“The South African Maritime Safety Authority (SAMSA) has wasted no time in embracing this groundbreaking economic stream.

“SAMSA has struck a partnership with the Nelson Mandela Metropolitan University and the Department of Higher Education in a National Cadetship Programme. This has resulted in one hundred and twenty-four (124) cadets being placed on eighteen (18) partner vessels.”

She further noted that the establishment of the country’s Ports Regulator had begun to make positive impacts, noting that: “A strategy to make doing business with our South African ports attractive, has seen zero percent (0%) increase on all cargo dues – thanks to the Ports Regulator South Africa. In support of drought relief and its impact on food prices, maize cargo dues for the first 5 million tons will be discounted by 50% in 2016/17 financial year.”

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