Maritime sector industry clustering: from competition to synergy

Port Elizabeth: 07 June 2016

Dolphin's Leap on Port Elizabeth's beachfront, the venue of the Operation Phakisa: Ocean Economy seminar on clustering in the South Africa maritime economic sector, involving a range of thought leaders from South Africa and Norway
Dolphin’s Leap on Port Elizabeth’s beachfront, the venue of the Operation Phakisa: Ocean Economy seminar on clustering in the South Africa maritime economic sector, involving a range of thought leaders from South Africa and Norway

Establishment of clusters in South Africa’s maritime economic sector could have far more advantages for business owners in the sector than is derived by companies operating in isolation and in silos as is currently the case now. Among other things, the existence of a cluster would rather than eliminate competition, create synergies characterized by greater co-operation with shared benefits along values chains.

This was the strongest sentiment to emerge on the first day of a two day seminar on Operation Phakisa: Ocean Economy – Exploring opportunities towards a national maritime cluster for South Africa – attended by a range  of thought leaders from South Africa and on Norway, on the need for development of clusters in the country’s maritime sector.

Delegates to the Operation Phakisa (Ocean Economy) two day seminar currently being held in Port Elizabeth, Eastern Cape.
Delegates to the Operation Phakisa (Ocean Economy) two day seminar currently being held in Port Elizabeth, Eastern Cape.

Several speakers, among them Ms Judy Beaumont, acting Director-General of the Department of Environmental Affairs, Dr Malek Pourzanjani, CEO of SAIMI and Mr Prasheen Maharaj, CEO of Shipyards said the launch of Operation Phakisa: Ocean Economic in 2014 provided South Africa an ideal platform upon which industry in the country’s maritime economic sector and government could collaborate to ensure rapid and sustainable development of the sector for the benefit of all South Africans.

Crucial to it all, however; was intentional and determined engagement both within the maritime business sector with a view to establishing effective collaborative channels, but also between the sector and the public sector.

Ms Judy Beaumont, acting Director General of the Department of Environmental Affairs
Ms Judy Beaumont, acting Director General of the Department of Environmental Affairs

Ms Beaumont outlined the nature and purpose of the Operation Phakisa (Ocean Economy) programme as well as the milestones achieved to date since its formal launch in 2014. She described the programme as intended to both develop and transform the sector for integration into the country’s mainstream economy for the benefit of all South Africans.

According to Ms Beaumont, the initiative has certain characteristics among which is the need for speed in implementing identified projects, but also the work undertaken jointly through cooperation and collaboration among stakeholders.

In his adress Dr Pourzanjani said; “This seminar is being held under the banner of Operation Phakisa to explore the establishment of a national maritime cluster. As with Operation Phakisa itself, the success of such a cluster will depend on the involvement and collaboration of all maritime role-players and sectors – it is not something that a single entity or authority can make happen on their own.”

Dr Malek Pourzanjani, Chief Executive Officer of the South African International Maritime Institute (SAIMI)
Dr Malek Pourzanjani, Chief Executive Officer of the South African International Maritime Institute (SAIMI)

According to Dr Pourzanjani, industrial clusters are not a new phenomenon and already exist in some other business and industrial sectors, such the country’s motor manufacturing, tourism and other services industries.

In Europe, he said; the European Network of Maritime Clusters drew its membership from 17 countries and just two weeks ago had met with the European Commissioner for the Environment, Maritime Affairs and Fisheries, Karmenu Vella, where optimism was expressed that “maritime clusters are blooming across Europe”.

These maritime industries, according to Dr Pourzanjani accounted for about five-million jobs and just less than five percent of the E.U’s G.D.P.

He said:” The value of clustering lies in their supportive environment for collaboration and innovation, which in turn assists industrial and small business development, employment creation, and overall value-added economic growth.”

Mr Maharaj said a currently dominant sense of self-preservation and advancement among especially what he described as a “few large companies and few Government employees” was not helping South Africa’s cause as the attitude to business development enabled only a handful to live well “while millions of our people are left jobless and poor.”

Dr Prasheen Maharaj, Chief Executive Officer, SA Shipyards
Dr Prasheen Maharaj, Chief Executive Officer, SA Shipyards

According to Mr Maharaj, quoting Algeria president Ellen Johnson Sirleaf as newly appointed head of ECOWAS, “Africa is not poor, it is poorly managed.”

He said: “Through Operation Phakisa, the Government is unveiling a new Marine Manufacturing and Industrial policy framework. This policy focuses on opportunity, growth and innovation in niche markets where South Africa can compete.

“It recognizes the value of marine transportation as an important industrial infrastructure, with environmental as well as economic benefits. And it focuses on partnerships, as it is only by working together that we can succeed. So the key to success is collaboration to drive innovation, resulting in greater efficiency and competitiveness.”

The same view was shared by Mr Peter Miles co-founder and executive of the Nelson Mandela Metropolitan Maritime Cluster established some three or so years ago.

According to Mr Miles, each of the port cities along the coast of South Africa should have a maritime cluster and through which a national cluster could be anchored, with a coordinating role. He suggested also that there should be a fund established to assist the formation and ongoing administration of the clusters.

According to Mr Miles, the funding could be raised through a rand-for-rand contribution from both the public and private sectors.

Meanwhile, a host of Norwegian industry, research and education experts have and continue to share their experience of clusters in that country’s maritime economic sector, with their overwhelming message being that South Africa’s sustainable success with its Operation Phakisa (Ocean Economy) will depend largely on such collaborative structures.

Norwegian ambassador to South Africa Ms Trine Skymoen in Port Elizabeth, Eastern Cape on Monday.
Norwegian ambassador to South Africa Ms Trine Skymoen in Port Elizabeth, Eastern Cape on Monday.

Led by Norway’s ambassador to South Africa, Ms Trine Skymoen, the Norwegian continent includes Ms Anne Lene Dale, Director for Economic and Commercial Affairs, Ministry of Foreign Affairs, Dr Ing Alf Egil Jense of the Norwegian Science & Technology, Dr Aase Kaurin of the Norway Research Council, Mr Svein Fjose of Menon Economic), and Dr Kristin Wallevik, the Dean of the University of Agder.

The two day seminar wraps up with a tour of the port of Port Elizabeth on Tuesday afternoon.

End

 

 

 

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