New off-shore bunkering services in SA break the wave for new novice black entrepreneurs

Port Eizabeth: 26 June 2020

The fledgling offshore ships bunkering services established four years ago in Algoa Bay may be beginning to live up to its economic promise, as business opportunities expand to new business entrants, some hitherto with little if any experience in shipping or any related maritime business sector services.

Lacking most in such area of business operations are largely black South Africans whose exposure to, and participation in maritime sector businesses is decidedly limited.

This is so even as South Africa is essentially a maritime country with direct access to three oceans stretching over a 3,200 kilometres coastline bordering a 1.5-million km2 of an ocean water space designated as its Exclusive Economic Zone: – from the Atlantic Ocean in the west, through the Southern Ocean, and to the Indian Ocean in the east.

As such, when black folk make a decisive break into the sector, as has recently a young black budding business entrepreneur from Port Elizabeth, the promise of the country’s maritime economic sector redevelopment and expansion positively contributing to South Africa’s broad economic development through inclusion and wealth redistribution to all, finds realisation.

South Africa’s offshore bunkering services on the Indian Ocean near the city of Port Elizabeth in the Eastern Cape province was officially sanctioned and set up in 2016, launched successively with two highly experienced major oil ship transfer services suppliers; first the Greece based operator, Minerva Bunkering (formerly Aegean Marine Petroleum, and thereafter, SA Marine Fuels – the latter an all local black women founded company, now part owned by Hong Kong based global oil products group, Orxy Energies.

By end 2019, according to the South African Maritime Safety Authority (SAMSA), no less than 100 ships on average per month annually had docked near the ocean city since, for bunkering and related services and in the process, fuelling the injection of hundreds of millions of rands into the local economy.

For a while however, associated shipping business services in the new offshore bunkering services subsector remained confined to a few chandlers’ hands – two, according to SAMSA – all of which were long serving and highly experienced maritime sector white owned and managed businesses.

Five years on in early 2020, a local young black man from a Port Elizabeth township, New Brighton, Mr Hintsa, Carlos Mpe broke ground by becoming the first black Small, Micro and Medium Enterprise (SMME) category business owner to gain entry in the provision of maritime sector business services to visiting ships in Algoa Bay.

Mr Mpe who, by his own admission, until very recently, had never before been on a boat at sea in his young life this despite having been born and grew up in a Port Elizabeth township only less than three kilometers from the Indian Ocean, made the breakthough by establishing a small services firm, called Mthi Wembotyi Projects in 2017, and acquiring a year later, a 16-meters long steel boat to render off-port-limits (OPL) ship services to vessels visiting the area.

According to Mr Mpe during an interview, his interest in the maritime sector business services was sparked by the gradual sprawl of big ships of all shapes now regularly putting anchor in the ocean off the coast of Port Elizabeth, mostly for crew changes and bunkering services.

” I was actually jogging down the Brighton Beach one day and saw all these ships that were floating lazily on the ocean and began to wonder what it was they doing there.

“From then on I began researching and soon found out that they are here for bunkering and related services, and I became interested in getting involved,” said Mr Mpe during an interview in Port Elizabeth.

Mr Hntsa Carlos Mpe

Having put his few ducks in a row, including acquiring the OPL boat from a local boat builder, his first real break into actually delivering services came early in 2020 after a local chandler, Vrontado Marine Services, headed by operations manager, James Bilsbury acquired his services.

Mr Mpe had come knocking at his services company’s front door, brokering business and according to Mr Bilsbury, on assessment during a meeting, they were satisfied with his offering.

“We are a ship chandling company which means we supply foreign vessels with provisions, technical, and other stores they might require. These stores sometimes need to be delivered to vessels at anchorage in our bay.

“Carlos called us one day and made an appointment to come and see us about doing some launches together (to deliver our stores at anchorage). He came to the meeting and introduced himself and his company to us.

“We explained in the meeting what we required of him before we can do business together. He met our demands and we have since done two deliveries to vessels at anchorage area using the launch boat called Crest.

“We have done the vessel MAASGRACHT on 28 May, carrying 2.6 tons in seven (7) bulk bags. Then we have done the MANDARIN vessel on the 31 May carrying four (4) tons in 10 bulk bags,” confirmed Mr Bilsbury.

Next for Mr Mpe was a deal with Heron Marine, a bunkering services company contracted to fuel four huge cruise vessels owned by Carnival which were passing the city on their way around the world to disembark thousands of seafarers caught up in the impacts of the current Covid-19 pandemic.

One of the four Carnival cruise ships, the Carnival Dream, required to take bunkers offshore while seat anchorage and this required more services than would ordinarily be the case with onshore refuelling at a port.

Mr Mpe’s role was to help shift to place, in between the cruise ship and the refuelling tanker, a massive barge with fenders, as well as lineup other protection equipment necessary for a safe transfer of oil from one vessel to the other.

“It was quite an exciting thing to do, getting that barge and all other equipment in place for the bunkering service, ” said Mr Mpe.

His engagement by Heron Marine however, was in keeping with the company’s commitment to create and provide business opportunities to emerging small businesses, but especially those from the black SMME sector, according to Heron Marine CEO, Ms Kgomotso Selokane.

“In our commitment to our license requirements, we use local suppliers as much as possible. In this operation specifically we procured the services of a drone operator to take footage of the entire operation.

“However, the pinnacle of our excitement was how we committed ourselves, as an entity, to SAMSA’s SMME Development requirement, as our mooring boat was provided by a local 100% Black Owned SMME,” she said in reference to Mr Mpe’s small firm’s engagement in the special operation.

Mr Mpe says the going has been tough but also rewarding so far, and he looks forward to making more inroads into the sector. However, this be hastened by direct investment into growing the business – something he hopes the business investment sector will be kind to.

“I want to grow this business and become a big business operator,” he said.

Meanwhile, SAMSA has applauded the development of the creation of opportunities for the entrance also of small black business operators in the country’s sole offshore bunkering services sector in the Eastern Cape.

According to SAMSA, a roleplayer and contributor to the implementation of the country’s Operation Phakisa (Oceans Economy) initiative lauched in 2014, bunkering in Algoa Bay plays a crucial role for the effective economic benefit of the local economy in Port Elizabeth (PE), Eastern Cape.  It has become an imperative for the local economy and the expansion of maritime sectors in PE.

Ms Bongiwe Stofile. SAMSA Southern Region Manager

SAMSA senior manager for the agency’s Southern Region (Mossel Bay to Port St Johns), Ms Bongiwe Stofile described it as an exciting development.

“This is a great achievement for us and the industry , as such we would like to celebrate it. It hasn’t been an easy process to instil a transformative mind-set in the industry and hence the recognition of first movers.” she said.

It is a view Ms Stofile also shared directly with the two companies that have so far contracted Mr Mpe’s small firm, Mthi Wembotyi Projects.

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A SLIVER OF A SILVER LINING – Covid-19 pandemic outbreak breaks new ground for SA bunkering services firm in PE

Port Elizabeth: 09 June 2020

The outbreak of the Covid-19 pandemic in China some six months ago has without doubt brought about the greatest health risk globally and, in its wake, by some accounts, the biggest economic threat and devastation in more than 100 years.

Yet as the old adage has it: ‘every dark cloud has a silver lining,’ so it turns out that the outbreak of the pandemic that’s forced many countries to close their borders, would also lead to new business opportunities for others that were not readily available before, and in the process, giving rise to creative thinking and innovation.

The Carnival Dream at anchor off the coast of Port Elizabeth receiving bunkering services during its last visit to South Africa to disembark cruise liner seafarers.

Heron Marine, a black woman owned bunkering services company based in Port Elizabeth is one such business operator to be presented with an opportunity that would call for its creativeness in delivering services to four huge international cruise vessels it has never serviced before.

According to Kgomotso Selokane, Chief Executive Officer of Heron Marine, four international cruise liners from Carnival, namely, the Carnival Dream, Carnival Liberty, Carnival Conquest and Carnival Ecstasy, came calling into the port of Ngqura in May.

The call into South African ports by these four cruise liners – among several similar – was to disembark the country’s seafarers who – along with the entire cruise line industry– have become economic victims of the Covid-19 pandemic outbreak.

Enroute to disembarking crew at Durban and other ports outside of South Africa the Carnival cruise ships required replenishments, among which was fuel for the journey to return home their thousands of seafarers rendered stranded due to closure of the industry worldwide.

Unlike its three sisters, the Carnival Dream – at 130,000gt and 305.47 meters long, with a guest capacity of some 3646 people as well as 1367 crew members – was to be refuelled seat anchorage. That presented some interesting challenges.

According to Ms Selokane, due to the configuration of the vessel and barge, the actual refuelling operation at anchorage required for the first time, the utilisation of a spacer barge with two Yokahama fenders on either side to serve as a bulwark between the company’s bunker barge and the cruise ship. In turn, this required not only tugs to shove and hold vessels in place, but also the utilisation of a mooring boat to layout oil booms to cover stern of the vessel.

Once arrangements had been finalised,  and with a keen eye constantly on the weather conditions as the refuelling had to be conducted in open anchorage , Heron Marine called on, among others,  Transnet National Ports Authority (TNPA) for assistance with tugs and consulted with the South African Maritime Safety Authority (SAMSA) to ensure compliance with the strictest safety standards during the bunkering operation.

The final alignment of all parties and equipment and calm weather conditions allowed for a successful refuelling of the Carnival Dream by one of Heron Marine’s bunkering barges, the Bonaire Trader.

She added: “SAMSA and TNPA’s approvals… demonstrated South Africa’s commitment to implementing the Comprehensive Maritime Transport Policy’s (CMTP) in making the country an international maritime centre, but more so our contribution to the global maritime economy during these trying times.”

Part of the economic contribution involved the deliberate utilisation of all local based services suppliers for support infrastructure, she said

“In our commitment to our license requirements, we use local suppliers as much as possible. In this operation specifically we procured the services of a drone operator to take footage of the entire operation.

“However, the pinnacle of our excitement was how we committed ourselves, as an entity, to SAMSA’s SMME Development requirement, as our mooring boat was provided by a local 100% Black Owned SMME.

“We would really like to thank SAMSA and the TNPA team for allowing this operation to take place and supporting its precedence as a first of its kind offshore ALGOA BAY or maybe even South Africa. “Working together like this is a true indication of our South African Spirit – not matter what we endeavour,” said Ms Selokane.

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Stimulus packages come under focus for maritime economic sector: Presidency

DSC_8461Port Elizabeth: 09 February 2020

Tracking down a set of stimulus packages earlier announced by government, and the revival of an inter-ministerial committee focused on South Africa’s maritime economic sector are among key issues to be pursued in the short term, according to Deputy Minister in the Presidency, Ms Thembi Siweya.

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Operation Phakisa (Oceans Economy) Projects Focus: Deputy Minister in the Presidency, Ms Thembi Siweya (centre) flanked by (Left) Eastern Cape MEC for Department of Economic Development, Environmental Affairs and Tourism and (Right), Deputy Minister of Public Enteprises, Mr Phumulo Masualle during their visit of maritime economic investment projects in Port Elizabeth, Eastern Cape on Wednesday, 05 February 2020

This, she pronounced on at the end of a whistle-stop visit to the Eastern Cape this past week along with Public Enterprises Deputy Minister, Mr Phumulo Masualle, to make an assessment of impacts as well as identify gaps in economic and investment programmes under the Operation Phakisa (Oceans Economy) initiative launched in the area.

In their company were senior officials of the Eastern Cape government, the South African Maritime Safety Authority (SAMSA), the Transnet National Ports Authority (TNPA) the Coega Development Corporation (CDC), the South African International Maritime Institute (SAIMI), Nelson Mandela Bay local government officials, leaders of business, and others.

The projects visited included the fledgling bunkering services recently established off-shore in the precinct of the port of Port Elizabeth, the planned relocation of a fuel tank farm and a manganese ore dump currently settled at the port of Port Elizabeth, as well as energy generation investment projects currently underway at the Coega Industrial Development adjacent the Ngqurha deep water, also near Port Elizabeth,

The Deputy Ministers also utilised the opportunity of their visit to meet leaders of business in the maritime economic sector with direct and indirect interest in the operations, as well as aspiring and established small businessmen.

The visit took place amid varied concerns involving, on the one hand, groups of  environmentalists in the area worried about the possible highly negative impacts of the new bunkering services to the environment, while on the other hand, small business fears of being overlooked for business opportunities now arising from the bunkering services.

Reporting on their observations after visiting the projects on Wednesday morning, Ms Siweya described the developments as showing good progress while acknowledging the challenges faced by some both in terms of concerns of possible environmental threats as well as difficulties faced by investors and business in general in the sector.

Matters of express concern raised, she said, revolved around poverty of legislation governing the new bunkering services, but also shipping especially terms of tax legislation, and the apparent absence of financial support and incentives to encourage investment in the sector. In addition, constant interaction between government, business and civil society to ensure proper alignment was crucial to success, she said.

Ms Siweya said the country’s maritime economic was among sectors identified under the National Development Plan (2030) as key to economic development and expansion and deliberate focus on it was necessary.

To this end, an inter-ministerial committee established in 2015 and which had since become dysfunctional would be revived, In addition, she said, it had become clear that there was a need for financial support of businesses in the sector in the form of a maritime fund.

In this regard, she said: “In 2018, the President spoke about a stimulus package, and there were departments that received stimulus packages. We are going to follow up on that to establish how far they are… what has been done with the funding.”

For Ms Siweya’s full remarks on this and various other matters, click on the video below.

Meanwhile, at the imbizo attended by no less 150 people at a venue located adjacent the Coega Development Zone, leaders of business in the maritime sector as well as aspirant business people wasted little time expressing their displeasure on numerous challenges which they face and towards which they felt government was failing them.

For a full perspective on the proceedings, invest time on the following video. It is about an hour long but goes a long way in depicting the exchanges as they happened.

Key highlights include the South African Maritime Safety Authority (SAMSA acting CEO, Mr Sobantu Tilayi (video: 55th minute) revealing for the first time in public, the enmvisaged establishment of a dedicated fund in the Nelson Mandela Bay to both fund expenses towards environmental preservation (in the case of an oil spill from bunkering services) as well as  support small and medium businesses operating in the sector.

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Bunkering services oil spill in Port Elizabeth under investigation: SAMSA

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One of early photos of the oil spillage incident during refuelling of a vessel off the coast of Port Elizabeth in the Indian Ocean on Saturday morning.

Pretoria: 07 July 2019

The South African Maritime Safety Authority (SAMSA) says an investigation is underway to establish the cause of the oil spillage incident during a bunkering service off the port of Ngqhura near Port Elizabeth on Saturday morning,

This follows confirmed reports of an oil spillage at sea while a trade vessel was being refuelled. It was reported that as much 200-400 litters of fuel spilt into the ocean. However, the bunkering services company involved, SA Marine Fuels, soon activated an oil spillage control exercise to contain its spread on water.

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Spilled oil is visible immediately behind the Liberia flag carrying trade vessel, the Chrysanthi S off the coast of Port Elizabeth on at the weekend. The incident is now under investigation, according to the South African Maritime Safety Authority (SAMSA) (Photo: SAMSA)

A Department of Environmental, Forestry and Fisheries’ statement on Saturday said the vessel involved was the Liberia flag carrying trade ship known as the MV Chrysanthi S. The department said it had been “notified of an oil spill that took place in Algoa Bay in the early hours of Saturday. The incident took place at approximately 04h40 (in the) morning during offshore bunkering operations in Anchorage 1 of the Port of Nqura.

“It was reported that approximately 200 to 400 litters of fuel from the receiving vessel MV Chrysanthi S, flag state Liberia, was spilled into the sea as a result of overflow during the fuel transfer.  SA Marine Fuels proceeded to dispatch a commercial oil spill response service provider to mitigate and contain the spread of the spill.

“This incident is currently considered a Tier 1 level incident which does not require intervention from the national authorities as local resources are sufficient. The department will provide assistance if the incident escalates and requires it.”

The department further said weather conditions in the Algoa Bay area on Saturday were hindering operations, which include wildlife assessments.

“However, the situation has been reported to be managed and under control. The oil is not expected to reach the coast and currently moving in an offshore direction. Transnet National Ports Authority, South African National Parks (SANParks), the South African Foundation for the Conservation of Coastal Birds (SANCCOB) and other environmental bodies have been notified and are monitoring the situation along with our department.

” A contingency plan is in place for the Diaz Zone (Algoa Bay) and the Department will activate it should it be determined that oil is likely to wash ashore.

Meanwhile, on Sunday, SAMSA said it had become fully aware of the incident and that an investigation was being rolled out to establish its cause.

The agency in a statement said: “SAMSA with other authorities will conduct a comprehensive investigation of the incident. An inspection will be conducted tomorrow (Monday) to check if the beach and islands are not affected.”

SAMSA noted however at the time of its statement on Sunday, that monitoring of the oil had indicated that there were no oil traces on the water in the areas yet.

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More visuals of the oil accidentally spilled on the ocean during a refuelling of a vessel near Port Elizabeth at the weekend. It was estimated that between 200-400 litters of oil spilled over onto the ocean water.

In its earlier statement, the Department of Environment, Forestry and Fisheries said it was  responsible for matters relating to the combating of oil pollution at sea under Section 52(1) of the South African Maritime Safety Authority Act.

The department said: “Specific arrangements and tactics for responding to incidents are contained in a suite of local oil spill contingency plans managed by the department.

The department further added than an Incident Management Organisation (IMOrg), consisting of various stakeholders including the department, had been established through Operation Phakisa Oceans Economy to address South Africa’s oil spill response capability in the marine environment.

“The IMOrg hosted an oil spill exercise in November 2018 testing the response capability in Algoa Bay and is also keeping a close watch of the incident circumstances and status,” said the department.

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SAMSA not apologetic about approach of contribution to Eastern Cape development: Acting CEO

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Pretoria 24 June 2019

The South African Maritime Safety Authority (SAMSA) is not apologetic about the approach of its contribution to economic development in the Eastern Cape insofar as it is consistent with its legislated mandate to, among other things; promote South Africa’s maritime economic interests.

This is according to the agency’s acting CEO, Mr Sobantu Tilayi in response to mounting criticism levelled against the agency with regards to its role in the attraction of investment into  bunkering services now operational in the coastal city of Port Elizabeth in Nelson Mandela Bay, Eastern Cape, as well as its rural maritime economic development projects involving the basic skilling and recruitment of rural coastal youths into cruise tourism globally.

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Mr Sobantu Tilayi. Acting CEO. SAMSA

The latter initiative which has seen more than 300 youths trained and found employment in MSC cruise vessels across the world was launched in the province in 2017 with the financial backing of the Office of the Premier, Eastern Cape, and technical and administrative support by Harambe.

It was initiated in Gauteng in 2016 with the support of Gauteng provincial government and is open to all provinces keen on it.

The bunkering services – essentially an international fuel services station established in the port of Port Elizabeth ocean precinct at the initiation of SAMSA – also began operations in 2016.

Recently, certain groupings, involving mainly environmentalists, have mounted opposition to the venture – now involving three services providers inclusive of a black owned all women company – on fears of possible environmental degradation due to possible oil spillages.

In response during a formal function to mark the registration of a fifth vessel under the South African flag in the port of Port Elizabeth a week ago, Mr Tilayi said the introduction of the bunkering services in the city had been undertaken following careful assessment of its suitability for the international service to trade cargo vessels passing along the southern oceans of Africa.

In addition, he said SAMSA was the country’s agency tasked with prevention of pollution by ships along the country’s three oceans, and also responsible for ensuring the safety of people and property at sea. Therefore, it was incumbent upon SAMSA to make sure there was no environmental threat of the seas by the bunkering services.

IMG_2514Working jointly and closely with the Department of Environmental Affairs, SAMSA had ensured that no danger would be posed by the bunkering services in the Port Elizabeth coastal region beyond pure accidents and which, if experienced, would be managed according to approved safeguard processes already in place.

However, consistent with both SAMSA’s mandate as well as objectives of the Operations Phakisa (Oceans Economy) initiative launched in 2014, crucially, a major consideration was that the investment into the bunkering services was a necessary economic intervention for especially the region of the Eastern Cape province that had historically been ignored by previous government policies and initiatives.

He said contrary to claims by critics, the bunkering services had yielded positive results as it had to date generated sizeable financial income for the Nelson Mandela Bay region running into millions of rand and created employment for about 300-500 people directly and in downstream businesses.

DSC_0274.JPGBut in addition, broadly, SAMSA had directed its efforts towards rural coastal areas in the Eastern Cape province to contribute to both skills development as well as jobs creation for youth. This was undertaken through two projects, the SAMSA Rural Maritime Development Programme as well as the Maritime Youth Development Programme.

The RMDP involves three broad areas, basic maritime skills development, fishing and marine tourism. The MYDP is focused on basic skills development and placement of youths on cruise vessels.

DSC_0324.JPGAccording to Mr Tilayi, the targeting of rural coastal areas of the Eastern Cape for these services as opposite to hinterland areas, was deliberate and informed by a defined need to ensure direct participation and beneficiation of the communities closest to the oceans on oceans economy development that was right at their own doorstep.

“It is a great pity, and regrettable that some in the Eastern Cape are finding reasons to look down on and denounce our efforts. But we are not apologetic about our approach to contribution to development of the region and frankly, we would prefer partnerships and collaboration to ensure that people of this region participate and benefit.

“But we are grateful and encouraged that many others in this region, including especially the Eastern Cape provincial government, are giving full support to our endeavours”

For Mr Tilayi’s full remarks on the issues, click on the video below.

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Parliament congratulates South Africa’s first three black women Master Mariners

Pretoria: 23 May 2017

South Africa’s first three black female Master Mariners (a.k.a ship Captains) received a warm welcome and applause at the country’s Parliament on Tuesday when they were introduced to lawmakers for the first time by the Minister of Transport, Joe Masangwanyi.

Transport Minister, Joe Masangwanyi (2)Mr Masangwanyi introduced the trio to Parliament during his maiden speech as Transport Minister in which delivered the ministry’s budget for the 2017/2018 financial year.

In his speech during which he also announced an allocation of about R119-million for maritime, Mr Masangwanyi described the Master Mariner qualification obtained by Captains Thembela Taboshe, Captain Tsepo Motloutsi and Captain Pretty Molefe in 2016 as the highest qualification for seafarers, and which enables them to command vessels of up to 3000 tons worldwide.

The three ship captains who made history by being the first black African females to do so, are currently working as ship surveyors for the South African Maritime Safety (SAMSA) at the port of Durban while furthering their academic studies in maritime law.

In the video below, Mr Maswangwayi makes his remarks about the three pioneers from 19:38 minutes to 20:30 minutes.

Meanwhile, a number of SAMSA projects came under the spotlight during the debate including the establishment a year ago of ships bunkering services at the port of Port Elizabeth in the Eastern Cape, some aspects of its involvement in cadet training as well as its social responsibility contributions to communities impacted by maritime activities, among them the community of Enkovekuni at uMhlabauyalingana in KwaZulu-Natal, as well as projects earmarked for the Port St Johns community in the current year.

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South Africa to beef up ocean environment protection against pollution: Department of Transport

South Africa also boasts cheapest tariffs for merchant shipping sector than any other ports in the world: National Ports Regulator

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Xhariep Dam (Free State): 30 September 2016

The beefing up of ocean environmental protection, particularly pollution prevention as well improvement of labour conditions for seafarers are among a series of initiatives currently being pursued in broad efforts to enhance rejuvenation and development of the maritime esector, the Transport Department confirmed this past week during the global observation of the World Maritime Day 2016.

Speaking at South Africa’s own version of the event held at Xhariep Dam in the Free State on Thursday, and whose international theme for 2016 was: Shipping is indispensable to the World; Transport Department maritime transport branch acting deputy Director General, Mr Clement Manyungwana highlighted a series of activities the department was engaged in currently with several stakeholders – among them other Government departments, the International Labour Organization (ILO) and the International Maritime Organization (IMO) – to strengthen the country’s hold and management of its maritime sector development drive.

According to Mr Manyungwana, among the initiatives he said were closely aligned to the country’s National Development Plan (NDP) were;

  • development of an integrated transport strategy,
  • enhancement of ocean security through acquisition of additional vessels,
  • promulgation of legislation to advance the protection of seafarers onboard vessels, as well as
  • development of further maritime policy and legislation

The improvement and enhancement of ocean environmental protection regarding particularly oil pollution was in part, in recognition and appreciation of the growth in shipping traffic drawn to newly established bunkering services at the country’s newest deep water port, the port of Ngqurha near Port Elizabeth in the Eastern Cape province.

For his full remarks (Audio only), Click Here

Ports Regulator & CEO, Mr Mahesh Fakir with Department of Transport Deputy Minister, Ms Sindisiwe Chikunga at the port of Saldanha on Monday
National Ports Regulator & CEO, Mr Mahesh Fakir

Meanwhile, National Ports Regulator CE, Mr Manesh Fakir said in efforts dedicated to attracting more global business trade vessels onto the countries’ port and to enhance local exports competitiveness, several studies had been conducted over the last year and which have led to identification of various efficiencies as well as establishment of a basket of incentives in the form of tariff reductions.

Mr Fakir said as a result, shipping liners reporting on South Africa’s ports now enjoyed lower prices of up to 50% less in comparison with comparable ports elsewhere in the world, with iron ore shipments specifically now paying less by up to 70-80% – largely due to the Rand/Dollar exchange effect.

On efforts to bolster South Africa’s export trade, he said that locally manufactured goods for export through containers also enjoyed as much as 70% lower tariffs compared containerized imports.

However, Mr Fakir warned that with global fleets increasing vessel carrying capacities leading to reduction in actual fleets, tariffs would not hold down for too long and might indeed increase over the next 10 years largely due to infrastructure maintenance and upgrading costs.

For Mr Fakir’s full remarks (Audio only), Click Here

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Penguins rescuers in Port Elizabeth in line for possible compensation

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Pretoria: 01 September 2016

Organizations involved in the rescue of dozens of penguins caught up in an oil spill along the Indian Ocean coast near Port Elizabeth in the Eastern Cape these last few weeks may be in line to recover some or all of the costs of the operation, according to the South African Maritime Safety Authority (SAMSA).

According to SAMSA Centre for Shipping’s executive head Captain Nigel Campbell this week, a Panama registered Turkish owned vessel found to have been responsible for the disastrous oil spill near Port Elizabeth three weeks ago had been issued with an Admission of Contravention amounting to a total R502 000, in addition to a R1-million provided by the vessel’s insurers for purposes of reimbursing people and or organizations involved in the rescue and clean-up of the sea birds.

More than a hundred penguins inhabiting a small island known as Jahleel near the Ngqurha deep water port some 30 kilometers north east of Port Elizabeth (a.k.a Mandela Bay), were affected by the oil spillage and it took a number of rescue organizations to collect them for cleaning and rehabilitation.

logo1Captain Campbell, in a statement responding to concerns expressed by a senior official of the Wildlife and Environmental Society of South Africa (WESSA) through a local Port Elizabeth daily newspaper this week, said SAMSA had responded immediately to two oil spillages that occurred in the vicinity.

The first spillage involved an accidental discharge of oil from a vessel loading bunkers and which sparked a concern at WESSA.

However, Captain Campbell to sought allay fears that the recently established shipping vessels’ bunkering service at the port of Port Elizabeth might prove problematic, indicating that the accidental spillage during the bunkering had been quickly cleaned up and was therefore not believed to have affected negatively the environment, but specifically wildlife.

Captain Campbell said: “The spill from the refuelling operation was approximately 100 litres and was cleaned up immediately. Although we are still awaiting the outcome of the testing of samples taken SAMSA strongly believes that this was not the source of the oil on the penguins.

“Some two days after this spill a large oil slick was found in the bay and additional slicks were noted further down the coast as far as Jeffrey’s Bay. Our investigation identified a vessel on passage to Cape Town that had pumped oily waste into the sea over a stretch of approximately 120 nautical miles through a faulty oily water separator.

penguins pe 1“The Turkish owned, Panamanian registered bulk carrier was subsequently detained in Cape Town as being unseaworthy. It was issued with an Admission of Contravention of R127 000 for this as well as an additional R375 000 for illegal discharge of oily waste.

“Furthermore the owners, through their insurers were required to lodge an undertaking of R1million to reimburse those parties that reacted to the spill, this would include the cleaning of penguins. The ship was only released from detention when all monies had been deposited,” said Captain Campbell.

Captain Campbell further explained the management of these Admissions of Contravention in terms of relevant legislation. He said the fines were essentially an “Admission of Contravention” in terms of Marine Pollution (Prevention of Pollution from Ships) Act No 2 of 1986.

“The monies received are deposited into the Maritime Fund which is managed by SAMSA but is controlled by the Minister of Transport.

“In terms of the SAMSA Act, an application to the Minister can be made only for the purpose of furthering the objectives of the Authority (SAMSA) and in this case, this would be ‘to prevent and combat pollution of the marine environment by ships’. The rehabilitation of wildlife would therefore be considered,” he said.

Meanwhile, WESSA chairman of the Algoa Bay (Port Elizabeth) branch, Ms Martheanne Finnemore in her letter published in The Herald; praised both SAMSA as well as the several organizations that responded quickly and decisively in alleviating the plight of the wild sea birds affected by the oil slick.

She said: “Well done SAMSA for imposing a fine of R350 000 on the ship that caused the spillage during the oil transfer. This money should be channelled to those voluntary organizations such as SAMREC (South African Marine Rehabilitation and Education Centre) and to SANCCOB (Southern African Foundation for the Conservation of Coastal Birds) and its facility at Cape St Francis Bay to enable them to continue doing their amazing work in rescuing and rehabilitating these iconic birds.”
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South Africa bags one more cargo vessel under its national flag!

Four cargo vessels now in the country’s register, with about a dozen more due for registration in the next few months!

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Port Elizabeth: 14 July 2016

South Africa’s drive to expand growth and economic opportunity in the country’s maritime economic sector is steadily gaining pace with one campaign of the broad Operation Phakisa (Ocean Economy) strategy – the local registration of trade cargo shipping vessels under the country’s flag, gaining ground.

This became evident in Port Elizabeth this week when on Wednesday afternoon, the fourth so far of an estimated dozen international cargo vessels due for registration, had raised and held aloft at its stern for the first time, South Africa’s flag for its identity.

The MT Lefkas, a bunker (ship fuelling) vessel, is owned by Greek shipping fleet group, Aegean; and will be officially stationed at the port of Port Elizabeth, to supply fuel at sea to vessels sailing along Africa’s southern oceans.

IMG_2466For Aegean, the registration in South Africa of the R200-million worth bunkering vessel measuring some 102.5 meters, with a gross tonnage of 4580; is a kick-off to a medium to long term investment in the country involving a capital layout of about R1.6-billion, and which will involve two more vessels; according to regional manager Mr Kosta Argyros.

He said the MT Lefkas, with a capacity of some 6.8-million litres of oil, will effectively be the runner between the Aegean’s other bigger tanker station offshore along the Eastern Cape coast and passing fleets requiring fuel supplies.

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Mr Kosta Argyros, Eastern Cape regional manager of Greek shipping group, Aegean.

According to Mr Argyros, the positioning of the Greek’s bunkering services vessels in the Eastern Cape coastal area is based also on projections of significant growth in oceans based cargo which, he said, would see an increase of as many as 300 trade vessels in the region in the near future.

However, for South Africa’s broader economy, the addition of the vessel to the country’s steadily yet progressively growing stock of locally registered cargo vessels – now numbering four since September 2015 – will expand opportunities for a whole range of ocean economy businesses, but also critically, provide berths for the training of seafarers.

Mr Argyros confirmed: “The registration of the “MT Lefkas” and other vessels that will follow is significant towards the employment of the South African seafarers. Every vessel has extra accommodation that allows for the training and development of cadets.

“The registration of the vessel is not restricted to the bunkering operation only but also introduces many economic benefits for the people of Port Elizabeth such as surveying, offshore services and crew changes” he said.

WELCOME ON BOARD THE MT LEFKAS: Displaying plaques denoting the formal registration of Aegean's bunkering services vessel, the MT Lefkus under the South African flag in Port Elizabeth on Wednesday are (From Left) Aegean fishing group Eastern Cape regional manager Mr Kosta Argyros, SAMSA acting CEO, Mr Sobantu Tilayi, port of Port Elizabeth manager Mr Rajesh Dana and port of Port Elizabeth harbour master, Captain Brynn Adamson
WELCOME ON BOARD THE MT LEFKAS: Displaying plaques denoting the formal registration of Aegean’s bunkering services vessel, the MT Lefkus under the South African flag in Port Elizabeth on Wednesday are (From Left) Aegean shipping group Eastern Cape regional manager Mr Kosta Argyros; SAMSA acting CEO, Mr Sobantu Tilayi; port of Port Elizabeth manager, Mr Rajesh Dana; and port of Port Elizabeth Harbour Master, Captain Brynn Adamson.

According to Mr Argyros, these and a whole range of additional business opportunities could generate as much as R5-million for Port Elizabeth’s local economy in a given time period and in the process, create more additional employment opportunities for the local communities, thereby spreading the income benefit.

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Mr Rajesh Dana, Port Manager; port of Port Elizabeth

Port of Port Elizabeth Manager, Mr. Rajesh Dana added: “The Port of Port Elizabeth is proud and honoured to be the registered home port for the Aegean vessel, MT LEFKAS. We congratulate Aegean for the registration of the vessel on the South African flag and look forward to the opportunities that this will present to Nelson Mandela Bay and South Africa.

“This historic event is significant to the Port of Port Elizabeth and South Africa at large as it marks the catalytic growth in the South African Ship Registry and once again highlights Nelson Mandela Bay’s attractiveness as a Maritime City and its potential to exploit the Blue Oceans Economy,” he said.

(For Mr Dana’s remarks, Click Below)…..

20150909_101517_1With the South African Maritime Safety Authority (SAMSA) charged by Government with responsibility for developing and expanding the country’s stock of locally registered vessels carrying the country’s flag, the organization’s acting Chief Executive Officer, Mr Sobantu Tilayi was on hand on Wednesday to witness and welcome the hoisting of the South Africa flag on the Greek owned vessel at the port of Port Elizabeth

Mr Sobantu Tilayi, acting Chief Executive Officer, South African Maritime Safety Authority (SAMSA) speaking at an event marking the hoisting of South Africa's flag onto the Greek shipping group, Aegean's bunkering services vessel in Port Elizabeth on Wednesday.
Mr Sobantu Tilayi, acting Chief Executive Officer, South African Maritime Safety Authority (SAMSA) speaking at an event marking the hoisting of South Africa’s flag onto the Greek shipping group, Aegean’s bunkering services vessel in Port Elizabeth on Wednesday.

Mr Sobantu said the positioning of the Aegean vessel in Port Elizabeth was with meeting a number of socio economic objectives among which was to strategically expand the location of fuel resources placement in the country, and which up to now, had been largely (66%) confined to the port of Durban in the KwaZulu-Natal province.

Mr Tilayi, flanked by the Mayor of Port Elizabeth (Nelson Mandela Bay metro), Dr Danny Jordaan and port of Port Elizabeth manager Mr Rajesh Dana, said the development and operationalization of the Ngqurha deep water port also in Port Elizabeth had opened up opportunity for expansion of transshipment of not only South African goods, but that of the whole of southern Africa.

“This helps reposition this whole (Eastern Cape) region to become an important transshipment hub for the entire southern African region.

He added: “Port Elizabeth has a very big potential as a services port for a whole range of maritime economic activities, including cruise (leisure) vessels because of its strategic positioning geographically but also because of the geolocation of the two ports which among other things, enjoy significant protection from weather and ocean currents related conditions,” he said.

(For Mr Tilayi:s full remarks, Click Below)

Port Elizabeth Mayor Dr Danny Jordaan
Nelson Mandela Bay Mayor Dr Danny Jordaan

Also welcoming the Aegean business operation’s location in Port Elizabeth, Dr Jordaan said the development was an indication of the progressive achievement of the objectives of the country’s Operation Phakisa (Ocean Economy) initiative launched in 2014, and which he said, placed the Eastern Cape coastal city central to efforts to rejuvenate the country’s maritime economic sector.

Dr Jordaan echoed words of encouragement to especially local business to take advantage of emerging opportunities linked to investment such as that of the Greek shipping company now based in the city.

(For Dr Jordaan’s video clip, please Click Here)

And for the formal flagging of the Aegean owned bunkering services vessel, the MT Lefkas, Click Here)

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