It’s all systems go for bunkering services in South Africa: SAMSA

Pretoria: 05 May 2024

Ships bunker services provision in South Africa – inclusive of off-shore operations – is well on track, with applications, approvals and issuance of licenses currently being managed expeditiously, the South African Maritime Safety Authority (SAMSA) has confirmed.

However, according to SAMSA’s Acting CEO, Mr Tau Morwe, operators have to ensure that they are compliant with requirements of SAMSA as well as both the South African Revenue Services (SARS) and the Transnet National Ports Authority (TNPA).

Mr Morwe made the confirmation on the status quo of bunkering services in South Africa during a day long maritime sector bunkering services roundtable meeting attended by about 80 people in Durban on Tuesday. (30 April 2024).

Representatives included industry principals, primarily ship owners and agents and some of whom are active bunkering services providers, state officials from Treasury, SARS, the Department of Transport, Department of Forestry, Fisheries and Environment, TNPA, Ports Regulator South Africa and SAMSA; ship-to-ship services providers and interested or affected parties – among them, environmental groups – as well as delegates from Mauritius, Mozambique and Namibia.

Mr Morwe’s remarks came in the wake of an apparent entrenching confusion or misunderstanding in the country’s maritime sector about the real state of bunkering services provision and administration, this coming in the wake of a clampdown by SARS on certain operators related to taxation issues during the latter part of 2023, as well as a ‘moratorium’ said to have been placed on the issuing of licences.

Flanked by Mr Mahesh Fakir, the chairperson of SAMSA’s Board of Directors, in his closing remarks of the gathering, Mr Morwe stated: “Where SAMSA stands is that applications for off shore bunkering, in terms of Section 21 (1) b (Prevention and Combating of Pollution of the Sea by Oil Act. 1981) is in process. Anyone can make the application.

“The TNPA and SAMSA are agreed on the continued processing of applications. However, in the processing of the applications, we remind applicants that we are not the only regulator, and they (applicants), have to tick the TNPA box, ensure that they are compliant with SARS. If that is in place, there is nothing preventing applicants or operators from conducting business. That is the state of affairs.”

“… there is nothing that says the business (of bunkering) is closed. I repeat, anyone wanting to apply for an operator license may do so. Tick the SARS box, tick the TNPA box!” said Mr Morwe.

For his full remarks, click on the video below.

Meanwhile, for a complete coverage of the SAMSA organised Maritime Sector Bunkering Services Round Table event in Durban on Tuesday last week, this blog captured as best it could the meetings’ proceedings as presented below. The only record unavailable, due in part to technology limitations, is that of regulators from Mauritius, Namibia and Mozambique who all were planned to make a virtual appearance online.

Key take-aways:

• Bunkering along with related ship-to-ship transfers services have a long history in South Africa and remain a major business and economic opportunity for sustained expoitation, given the country’s almost perfect geolocation at the foot of the African continent, with an ocean space global shipping corridor that is equidistant between western and eastern countries.
• With expansion of particularly bunkering services to off shore, notably in Algoa Bay since 2016, the regulatory domain has lagged behind for clarity, leading to disruption and confusion as evidenced by a 2023 SARS clampdown on some operators in Algoa Bay due to taxation related matters
• The haitus has led to vast loss of business opportunity and income in the past few years especially since the break-out of strife and wars affecting major shipping lines in the Middle East and eastern Europe and which led to an increase in shipping traffic sailing along the Cape of Good Hope ocean corridor.
• SARS related regulations are in the process of being finalised and should soon be operational.
• Going forward, SAMSA, the TNPA and SARS are the key (but not exclusive) state institutions whose regulations operators – current or aspirant – must comply with.
• Overall, there is an agreed need both by the relevant state institutions (SAMSA, TNPA, SARS, Ports Regulator, DFFE) and the private sector for closer cooperation and collaboration between the regulatory institutions, as well as about ongoing engagement and interaction with all stakeholders and interested parties in the maritime sector.
• A commitment is reached that established forums in the bunkering subsector as well as periodic maritime sector and regulators roundtable meetings shall continue into the future.

In the package below, in the order of their appearance and presentations, first up are Welcoming and Opening Remarks by Mr Morwe and Mr Fakir respectively, in which they broadly outline the standpoint of SAMSA on the state of bunkering administration in South Africa.

Next are representatives of the Ports Regulator, TNPA and SAMSA on the status quo of bunkering services.

Following are representatives of the Treasury, SARS and the DFFE on “Government on bunkering risk, opportunities and enablement.”

Finally, below – in no particular order – are representatives of industry (including the South African Association of Ship Owners and Agents (SAASOA), on their own individual and group perspectives, afterwhich a final Question and Answer Session ensues.

End.