SA maritime industry network launch just the tool for sector’s much needed rapid development: Govt, business.

_{Leadership of South Africa’s newly established Maritime Industry Development Task Force Network (MIDTSN) during formal launch of the private sector initiated formation in Durban on Thursday, 11 August 2022. (Photo: SAMSA File)}

Pretoria: 20 August 2022

The launch in South Africa of a private-sector driven Maritime Industry Development Task Force Network (MIDTFN) could prove to be just the most appropriate step needed currently to inject much desired positive impetus on the country’s blue economy strategy outlined through the Operation Phakisa (Oceans Economy) government programme launched all of eight years ago.

Precisely, the country’s Comprehensive Maritime Transport Policy (CMTP) implementation by the Department of Transport and through which as much as R177-billion in Gross Domestic Product (GDP) contribution could be unlocked in the maritime sector alone, and with it, the creation of close on a million jobs in the next decade, will need it.

At least that is the view of the more than three dozen maritime industry practitioners, business leaders and related whose ‘task forces’ representatives graced the launch event at Durban port’s upmarket MSC cruiseliner passenger terminal, along with senior officials of the Department of Transport and others a week ago.

*_{Top leadership the MIDTFN (From Left) Capt. Makhosi Mbokwazi (Second deputy President), Mr Prasheen Maharaj (President) and Mr Lindani Mchunu (First deputy President).}*

Leading the private sector task forces grouping under the MIDFT Network umbrella body was its first president, Mr Prasheen Maharaj (Sandock Austral), deputies Mr Lindani Mchunu (V&A Waterfront) and Capt. Makhosi Mbokazi (Transnet National Ports Authority), along with Department of Transport (DoT) Chief Director for Maritime Policy and Legislation, Mr Dumisani Ntuli.

*_{Mr Dumisani Ntuli, Chief Director: Maritime Policy & Legislation. Department of Transport}*

The goal of the formation of the network, according to both the network and the DoT is to provide a platform upon which the country’s maritime economic sector can combine seamlessly to form a social compact in execution of efforts towards rapid development of the country’s maritime industry which, by their own admission; lacks desired progress.

To ensure appropriate, equitable representation of all involved and interested, according to Mr Maharaj, the Network is a collective of work streams or ‘task forces’ representative of several subsectors for each of private sector identified priority investment and development areas in the country’s maritime industry.

During launch of the network in Durban on Thursday, 11 August 2022; six of these task forces – all led by private sector appointed representatives – were already in existence and operational.

Collectively, the network will serve as a conduit for joint effort and collaboration with Government and other maritime economic sector stakeholders in South Africa and abroad to drive investment and business development while contributing to resolution of the country’s triple challenges of inequality, unemployment and poverty.

The six streams so far comprise;

a Maritime Industry Value Chain Task Force championeed by Mr Durand Naidoo, chief executive officer of Lisen Nambi Group of Companies,
a Maritime Industry Space Solutions Task Force championed by Ms Nokwanda Mkhize (researcher at Saldanha Bay Industrial Development Zone) and Mr Imraan Saloojee (executive director of The Research Institute for Innovation and Sustainability [RIIS]),
a Maritime Industry Ship Repair Hub Task Force championed by Mr Karl Wiesner (Managing Director of the Sandock Austral Defense Engineering System [SADES]),
a Maritime Industry Human Resources Task Force championed by Mr Nceba Mfini (Human Resources Executive at AMSOL),
a Maritime Industry Scaling Up through industry-wide collaborations Task Force (MSuC-TF) championed by Dr. Nandipha Siwahla-Madiba (Non Executive Director of Freight Logistics South Africa), and
a Maritime Industry Decarbonisation through Renewable Energy Task Force (MDtRE)-TF championed by Mr Thomas Roos (Senior Research Engineer at the Council for Scientific and Industrial Research [CSIR])

In addition, the network works closely with a Maritime Industry Communication Forum.

In order to preserve clarity of messaging, in addition to capturinng the network launch proceedings as best as ambience conditions allowed in the huge cruiseliners’ passenger terminal hall, this blog also conducted interviews with both Mr Ntuli (DoT) as well as Mr Maharaj.

In the seperate interviews, they fully outlined both the purpose of the network and its anticipated impact on the Operation Phakisa (Oceans Economy) programme as well as its underlying policy framework under the DoT’s Comprehensive Maritime Transport Policy.

Curiously, what came out of both was a common message that neither government nor the private sector can do it alone. The country’s ailing maritime economic sector needs both to realise meaningful development through increased investment.

To listen to the interviews click on the videos below.

_{Mr Dumisani Ntuli. Chief Director: Maritime Policy & Legislation. Department of Transport}

_{Mr Prasheen Maharaj, SA Maritime Industry Development Task Force Network president.}

For each of the respective officials (Mr Ntuli and Mr Maharaj’s on stage presentations, click on the videos below.

_{Mr Dumisani Ntuli’s main address}

_{Mr Prasheed Maharaj’s main address}

_{Network First Deputy President Mr Lindani Mchunu’s address unpacking the composition of the Task Forces}

The four Task Forces champions present at the launch event, also shared a few insights. To view and listen, click on the respective videos below.

_{Mr Thomas Roo}s

_{Mr Karl Wiesner}

_{Mr Nceba Mfini}

_{Dr Nandipha Siwahla-Madiba}

End

Collaboration is key to success of global maritime sector development: SATC Conference & Exhibition

Pretoria: 06 July 2021

Development of southern Africa’s maritime economic sector has no room for selfish, self-centred independent actors, and instead demands of all involved a sustained close collaboration in order to ensure not only the success of collective effort but also equity in shared benefits

This was the dominant theme of speakers in the maritime transport section of this year’s Southern Africa Transport Conference (SATC) inaugural virtual conference and exhibition that began on Monday (05 July) and ends at about lunchtime on Wednesday (07 July).

With South Africa’s Minister of Transport, Mr Fikile Mbalula having officially marked the start of the conference with an address, among keynote speakers on the maritime transport theme during Monday’s session were South African Maritime Safety Authority (SAMSA) acting Chief Executive Officer, Ms Tsepiso Taoana-Mashiloane, Mr Kholisile Mlambo of Mzansi Scuba Diving Academy, Mr Andrew Pike of Bownmans, Ms S Smith-Godfrey of the Council for Scientific and Industrial Research (CSIR), Dr Michael Ekow Manuel of the World Maritime University and Mr C Mlambo.

With a presentation titled: Partners in building a maritime nation Ms Taoana-Mashiloane outlined SAMSA’s critical role as the country’s State agency mandated with among other things, advancing South Africa’s maritime interests and the centrality of meaningful partnerships between the agency and other role players in the public and private sectors but also crucially, establishing and sustaininng links with others in the sub-region, continent as well as international institutions.

Ms Tsepiso Taoana-Mashiloane. Acting CEO: SAMSA

In a prerecorded presentation lasting about 17 minutes, Ms Taoana-Mashiloane said while the world might currently be faced with socio-economic woes largely brought about by the outbreak of the Covid-19 against which many countries continue to battle, current global economic studies also continue to project the African region positively as among those with prospects of high economic performance, and central to which is oceans transport, and by extension the maritime ecoomic sector.

Poised to play a critical role, she said; was the launch of the African Continental Free Trade Area Agreement (ACFTA) which commits countries in the region to remove tariffs on 90 per cent of goods and to progressively liberalise trade in services as well as address a host of other non-tariff barriers.

‘UNCTAD expects the Global maritime trade growth to return to positive trajectory in 2021 by expanding by 4.8%. Sustainable shipping, decarbonisation and ship pollution control remain priorities in 2021 (and) it is forecasted that the Sub-Saharan Africa area intra trade will double by 2030 and this will elevate the huge significance of a maritime transport system

“Britain, China, United States, France and the European Union have all launched initiatives to strengthen bilateral trade and investment relationships with Africa,” she indicated. However, for any of these developments to yield meaningful outcomes, maritime sector stakeholders and roleplayers needed to forge close relations and sustainable partnerships., she said.

Pointing to SAMSA’s own initiatives in this regard among which is its representative role for the country at International Maritime Organisation (IMO) as well as involvement and collaboration with similar institutions both on the Atlantic and Indian seaboards, the African Union and related institutions, she said: “The ability to leverage partner resources, subject matter expertise and innovation is a competitive advantage of a great partnership. Otherwise, trying to go it alone and strive to outshine others and to get all credit is not anyone’s interest.

“The 2050 African Maritime Integrated Strategy (AIMS) seeks to provide a broad framework for the protection and sustainable exploitation of the African maritime domain for wealth creation. Alongside, the African Maritime Charter (AMC) declares, articulates and advocates the implementation of harmonised maritime transport policies capable of promoting sustained growth and development of African Merchant Fleets as well as promote bilateral and multilateral cooperation among the maritime administrations of States Parties and their respective operational organizations in the field of maritime and inland waterways transport and port activities.

“In addition it seeks to also promote the funding, undertaking of research studies by national institutions that encourage the promotion and development of cooperation in maritime and inland waterways transport and port operations among States Parties and regions.

Domestically, according to Ms Toana-Mashiloane, South Africa’s positive response had included the launch of the Operation Phakisa (Oceans Economy) followed by the promulgation of the Comprehensive Maritime Transport Policy both to widen the scope for partnerships across sectors of the economy inclusive of identification of business investment opportunities, she added.

“As part of development efforts, we continue to engage and explore strategic partnership with the different industry players including local municipalities with the purpose of creating economic opportunities for local communities,”she said.

For her full presentation at the SATC Conference and Exhibition 2021, click on the video below.

Ubuntu – we are human only through the humanity of others

Dr Michael Ekow Manuel. Professor: World Maritime University

The theme was taken further by Sweden based World Maritime University representative, Dr Michael Ekow Manuel who described the subject of necessary partnership and collaborations in the sector as among the United Nation’s Sustainable Development Goals.

Talking to a presentation themed: Fostering a partnership mindset; Governance and education; Dr Manuel said among targets of the UNSDGs was the enhancement of Global Partnership for Sustainable Development, “complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the Sustainable Development Goals in all countries, in particular developing countries.
Further, the target encompassed efforts to “encourage and promote effective public, public-private and civil society partnerships, building on the experience and resourcing strategies of partnership.

From a governance perspective, optimising key factors, he said; included “ethical behaviour, a problem-centric approach, stakeholder equity and voice, leadership with partnership skills, evaluation criteria, learning procress and ageements.” With regards education, Dr Manuel said it had to play a transformative role “in which people are engaged in a new way of seeing, thinking, learning and working….a new set of skils such as envisioning, critical thinking and reflection, dialogue and negotiation, collaboration and building partnerships.”

Quoting former South African President, the late Mr Nelson Mandela; Dr Manuel reflected that: “In Africa there is a concept known as ubuntu – the profound sense that we are human only through the humanity of others, that if we are to accomplish anything in this world it will in equal measure be due to the work and achievements of others.”

South Africa no longer the only sheriff in town

Mr Andrew Pike. Heard of ports, Transport and Logistics: Bowmans

That notwithstanding, according to Bowmans’ head of ports, transport and logistics Mr Andrew Pike, it helped little in fostering strong partnerships and collaborations if some of the players in the southern African region failed to pull their weight, indicating further that South Africa, despite its numerous maritime related advantages, was nevertherless on the verge of fairing poorly compared with its oceans bordered peers and flanking countries both to the east, namely Mozambique, as well as to the west, notably Namibia.

South Africa’s competitiveness with its ports infrastructure and performance was noticeably waning, he said, citing a World Bank’s recent report that ranked the country lowest at 347 out of 351 countries world wide – and in fact, the lowest ranking of all African countries.

Closest home, Mr Pike said even with the outbreak of Covid-19 which hugely affected sea transport negatively right across the board, statistics indicated that Mozambique outperformed South Africa in terms of trade ships port calls, even increasing its tally from 1 927 in 2018 and 2 145 in 2019 to 2 019 in 2020. This was in contrast to South Africa suffering a drop in trade ships port calls from 8 510 in 2018 and 8 856 in 2019 to 7 836 in 2020.

A similar picture was gradually emerging on the Atlantic seaboard where Namibia was making strides both in terms of infrastruture investment as well as competitive performance to the benefit of the southern African region previously almost entirely dependent on South African ports.

According to Mr Pike, partnerships and collaboration were all good but all involved had to pull their weight. He intimated that South Africa would do herself a lot of good, and humble herself by realising that the country was “not the only sheriff in town.”

End

Interim maritime sector development council to launch in June.

Durban: 01 March 2019

Delegates to a two day maritime sector transport dialogue held in Durban on Thursday and Friday wholly endorsed the setting up of a proposed development council for the sector, possibly as early June 2019.

This emerged at the closure of the event by Transport Minister, Dr Blade Nzimande at about lunchtime on Friday, following to two days of deliberation by hundreds of delegates representing government, the private sector as well as academia.

Minister of Transport, Dr Blade Nzimande

According to Dr Nzimande, establishment of the development council for the maritime economic sector is a proposal emanating from the adoption and implementation of the Comprehensive Maritime Transport Policy (CMTP) in 2017.

In his opening address on Thursday, Dr Nzimande said the maritime transport sector was a “key component in government’s objective in growing and developing the oceans economy.”

He said according to current estimates of the Operation Phakisa: Oceans Economy strategy, the country’s oceans in which South Africa has as much as 1.5-million square kilometers of an exclusive economic zone, have the potential to contribute up to R177 billion to the gross domestic product (GDP) and create just over one million jobs by 2033 and between 800 000 and 1-million direct jobs.

“Through Operation Phakisa, 47 detailed initiatives have been identified, whose progressive implementation is expected to increase the oceans economy’s GDP contribution by R20 million per annum and lead to the creation of 22 000 direct new jobs this year, 2019,” he said.

Some of the delegates to the Department of Transport convened two day maritime sector dialogue held in Durban on Thursday and Friday.

However, very little progress was being achieved both in terms of actual economic and business development as well as transformation due to a whole range of reasons, hence the need for those immersed in or with interest in the sector to get around a table and devise workable plans about how best to overcome identified challenges.

He said: “As the Department of Transport, we are leading the Marine Transport and Manufacturing work stream, which is amongst the six work streams established by Operation Phakisa ocean economy.

“Amongst others, our work stream has highlighted a concern that South Africa currently has no registered ships (since corrected to “two or three”). This is in spite of the fact that each year, 300-million tons of cargo moves through our ports in imports and exports.

“In addition, 1.2-million tonnes of liquid fuels move along our coast, while the rapidly expanding offshore oil and gas activities require a supporting fleet of vessels,” he said

Confronted by these and various other challenges, Dr Nzimande said the proposed development council, in terms of the CMTP, was intended as a critical intervention to assist with realization of the goals of growth, development and transformation of maritime transport.”

He said: “The CMTP envisages the establishment of the Maritime Transport Sector Development Council as a platform and vehicle to develop concrete strategies and co-operation to develop and transform the sector. This Council is also expected to develop appropriate plans to grow the sector within the context of the oceans economy.

“The development of a multiyear Maritime Transport Sector Plan (MTSDP) as well as the review and monitoring of the overall performance of the sector are key tasks assigned to the MTSDC by the CMTP.”

On Friday, Dr Nzimande announced that delegates to the two day Transport Department dialogue were with one voice that the proposal should be implemented as soon as possible.

He said establishment of the council could occur as early June 2019, even if on an interim basis.

End

Development council proposed for maritime sector: Dr Blade Nzimande

Durban: 01 March 2019

The establishment of a Maritime Transport Sector Development Council may be one critical intervention necessary as a platform and vehicle to develop concrete strategies and co-operation to develop and transform the sector, Transport Minister Dr Blade Nzimande has announced.

He was addressing hundreds of delegates attending the Department of Transport’s two-day dialogue on maritime sector transport in Durban on Thursday. These include government, private sector and academia representatives from across the country.

According to Dr Nzimande the Council would also be expected to develop appropriate plans to grow the sector within the context of the oceans economy.

The proposal was coming against the backdrop of the introduction of the Comprehensive Maritime Transport Policy (CMTP) in 2017 aimed at expanding opportunity as well as foster transformation in the sector.

On Thursday, he said: “For us to succeed in the growth, development and transformation of the maritime sector, the Department of Transport introduced the Comprehensive Maritime Transport Policy (CMTP) to realize the goals of growth, development and transformation of maritime transport.

“The CMTP calls on all of us to help develop and position South Africa as an international maritime centre. Part of what we have been working on as the Department of Transport, has been the identification of both obstacles and gaps in current legislation, especially legislative or legal impediments to the smooth implementation of the CMTP.

“The CMTP vision of a maritime transport industry is that of ‘an effective and growing industry that is safe, secure, reliable, economical and well regulated.’ It goes further to say that ‘it should be environmentally sustainable within the global logistics chain, and contribute to South Africa’s socio economic development and growth.’

Some of the delegates to the inaugural Department of Transport’s maritime sector transport dialogues in Durban.

“The CMTP envisages the establishment of the Maritime Transport Sector Development Council as a platform and vehicle to develop concrete strategies and co-operation to develop and transform the sector. This Council is also expected to develop appropriate plans to grow the sector within the context of the oceans economy,” said Dr Nzimande.

Existence of the new Council would, he said, enable the development of a multiyear Maritime Transport Sector Plan (MTSDP) as well as the review and monitoring of the overall performance of the sector as key tasks assigned to the MTSDC by the CMTP.

“I would like to move with speed to establish the necessary framework for the institutionalization of these bodies because I believe they will help achieve our development objectives.

“Making such decisions will not only revitalize shipping but will also save our country the estimated R46 billion per annum of freight transportation costs.

“Parallel to the adoption of favorable trade terms, it has become urgent that mining and energy sectors hold consultations towards the development and adoption of an incentivized scorecard in the procurement of shipping transportation especially for the movement of coal, iron ore, manganese, chrome and other materials in the context of agreed percentages for such transportation as reserved for South African ships. “

Dr Nzimande also confirmed the launch next month of the Maritime International Relations and Technical Cooperation Committee (MIRTC) to enhance planning and execution of maritime economic diplomacy.

He said: “My Department has advised me that the Maritime International Relations and Technical Cooperation Committee (MIRTC) as envisaged in the CMTP is being established next month. The MIRTC will enhance the planning and execution of our maritime economic diplomacy.

“I also understand that, consultations are at advanced stage toward the establishment of the BRICS Maritime Forum. Further consultations will be undertaken in the margins of the forthcoming BRICS Summit taking place in Brazil in August 2019.

“I would wish to encourage the setting up of these structures as they will go a long way in ensuring that we engage internationally with a very clear articulation of what our international maritime strategic approach is,” he said.

For Dr Nzimande’s full remarks, either read the full text below, or click on the video below.

Remarks by Minister of Transport, Dr Blade Nzimande at the inaugural transport dialogue for the maritime economic sector in Durban on Thursday – the first of two days of the event.

Video:

Speech Text

Ladies and gentlemen,

Sanibonani, good morning to you all.

I am pleased to welcome you to the first Ministerial Dialogue series on Transport. In this dialogue convened for the coming two days, we will be discussing and engaging on the South African Maritime Transport Industry and its contribution towards creating jobs – moving south Africa forward.

The inaugural Maritime Transport dialogue event is the first in a series of transport dialogues. Cabinet adopted the Comprehensive Maritime Transport Policy (CMTP) as a framework for the growth, development, and the transformation of maritime transport in our country.

It is time that all the stakeholders gather and have such a dialogue in order to hopefully agree on a common approach to the accelerated transformation of the sector.

So that we properly understand the true nature of the sector, my department, working together with the sector as a whole, to produce a proper picture of the state of the maritime transport sector.

I strongly support more extensive and intensive research into this sector so that we are better informed about what is to be done. The maritime transport sector is a also a key component in government’s objective in growing and developing the oceans economy.

If I were to compress my speech into a few sentences about what this dialogue should achieve, I would say that what is paramount in my mind as we gather over the next two days is: what are the obstacles to the transformation of the maritime sector generally, and the maritime transport component of this sector in particular? And what is to be done?

What economic opportunities are there to to grow and develop a transforming maritime transport sector? How do we ensure inclusive growth and development of the sector, including the previously disadvantaged, as well as women and youth? How do we accelerate employment equity and decent working environment in this sector?

I expect frank and robust discussions in exploring these questions over the next two days, but minimizing lamenting and focus on concrete actions and strategies to transform the sector.

I wish to state upfront that there is no contradiction between growth and development of the sector on the one hand, and the transformation of the sector. Instead the two are closely intertwined.

There can be no growth and development of the sector unless it is inclusive and transforming!

Ladies and gentlemen

Government’s starting point is that South Africa is surrounded by just under 4000 kilometers of sea line and we have correctly identified our oceans as a strategic resource and that which we have not fully taken advantage of given its hugely untapped potential.

According to Operation Phakisa – Oceans Economy strategy, the oceans have the potential to contribute up to R177 billion to the gross domestic product (GDP) and create just over one million jobs by 2033 and between 800 000 and 1 million direct jobs.

Through Operation Phakisa, forty-seven (47) detailed initiatives have been identified, whose progressive implementation is expected to increase the oceans economy’s GDP contribution by R20 million per annum and lead to the creation of 22 000 direct new jobs this year, 2019.

To further explore this potential, government brought together teams from government, labour, business, academia and other sectors to work together in experimental laboratories, to explore all possibilities and further unlock the potential of our country’s vast coastline.

This is all consolidated under Operation Phakisa. In addition to these laboratories, we therefore can achieve more of these objectives if we put in place two enablers of Skills and Capacity Building and that of Research, Technology and Innovation also to prepare for the Fourth Industrial Revolution.

As the Department of Transport, we are leading the Marine Transport and Manufacturing work stream, which is amongst the six work streams established by Operation Phakisa ocean economy.

Amongst others, our work stream has highlighted a concern that South Africa currently has no registered ships. This is in spite of the fact that each year, three hundred million (300 million) tons of cargo moves through our ports in imports and exports.

In addition, 1.2 million tonnes of liquid fuels move along our coast, while the rapidly expanding offshore oil and gas activities require a supporting fleet of vessels.

As a country, we are ideally positioned to serve the East-West cargo traffic and the booming African offshore oil and gas industry, through marine manufacturing, which includes ship and rig repair, refurbishment and boat-building.

Despite this competitive advantage in geography, we currently capture only one percent of the global market of ship repair and replenishment. Of the eighty (80) oil rigs estimated to be in the range of the Western Cape, only four rigs are serviced per year, showing significant potential for growth.

We therefore need to swiftly meet some of the initial targets drawn up by this work stream which include:

An increase in the local manufacturing capacity through a ten percent increase in the usage of local components for boat and ship building;

An increase in the ship repair capacity in Richards Bay, thus creating two hundred (200) direct jobs;

To create a dedicated education, training and skills development focus for the sector, working with the Department of Higher Education and Training in particular.

Increasing the amount of minerals exported on South African ships, as well as the attracting investment into the development of coastal shipping, through transportation of goods and products (eg. motor vehicles) through sea whilst simultaneously growing tourism in this regard.

Ladies and gentlemen

I decided as part my commitment as Minister of Transport to promote a much deeper dialogue between government, labour, business and academia with direct or indirect interest in the transport industry generally, starting with the maritime transport dialogue.

Today, as we reflect on the maritime sector, we can attest to meaningful progress already achieved. However more still need to be done particularly as we are gathered here as social partners to restore the bonds of trust, dialogue and cooperation.

Through this dialogue, we intend to reach out to those parts of our society that have become disaffected, disinterested or marginalized from meaningful participation in the sector.

We held a successful Presidential Jobs Summit that agreed on far-reaching measures that – when fully implemented – will nearly double the number of jobs being created in our economy each year.

The maritime sector must also ensure that the Job Summit agreements are realized. For us to succeed in the growth, development and transformation of the maritime sector, the Department of Transport introduced the Comprehensive Maritime Transport Policy (CMTP) to realize the goals of growth, development and transformation of maritime transport.

The CMTP calls on all of us to help develop and position South Africa as an international maritime centre. Part of what we have been working on as the Department of Transport, has been the identification of both obstacles and gaps in current legislation, especially legislative or legal impediments to the smooth implementation of the CMTP.

The CMTP vision of a maritime transport industry is that of “an effective and growing industry that is safe, secure, reliable, economical and well regulated. It goes further to say that “it should be environmentally sustainable within the global logistics chain, and contribute to South Africa’s socio economic development and growth.

The CMTP envisages the establishment of the Maritime Transport Sector Development Council as a platform and vehicle to develop concrete strategies and co-operation to develop and transform the sector. This Council is also expected to develop appropriate plans to grow the sector within the context of the oceans economy.

The development of a multiyear Maritime Transport Sector Plan (MTSDP) as well as the review and monitoring of the overall performance of the sector are key tasks assigned to the MTSDC by the CMTP. I would like to move with speed to establish the necessary framework for the institutionalization of these bodies because I believe they will help achieve our development objectives.

Making such decisions will not only revitalize shipping but will also save our country the estimated R46 billion per annum of freight transportation costs. Parallel to the adoption of favorable trade terms, it has become urgent that mining and energy sectors hold consultations towards the development and adoption of an incentivized scorecard in the procurement of shipping transportation especially for the movement of coal, iron ore, manganese, chrome and other materials in the context of agreed percentages for such transportation as reserved for South African ships.

The national shipping carrier(s) is regarded as strategic pillar in the revival of the maritime transport industry especially shipping. When Cabinet approved the CMTP, it approved the policy with an embedded target of ensuring that measures that will ensure that within the next 5 years of the adoption of the CMTP, a significant targeted percentage of exports and imports are moved by the national shipping carrier.

We are already in the 2nd year of the adoption of the CMTP adoption and it has therefore become extremely urgent that these measures with clear timeframes are implemented.

Although I welcome the emerging offshore bunkering services provision along South Africa’s coast especially off Port Elizabeth, such developments must not happen outside the context of the CMTP envisaged development of a bunkering infrastructure and service strategic framework. Offshore bunkering services must not negatively impact on in-port bunkering services provided by South African businesses.

The CMTP’s provision of this framework will create a balanced and viable industry as opposed to the mushrooming of activities that are mainly driven by foreign or narrow interests whose desire is money, and possibly spearheaded by individuals or entities who are engaged in potential fronting.

The regulation of maritime zones remain my responsibility and I will be announcing measures that will ensure that these zones, particularly in which we have exclusive jurisdiction over, are increasingly serviced by licensed South African entities. I need to commend the Ports Regulator of South Africa for their role in creating a conducive and investor friendly environment in ports by helping reduce the cost of doing business in ports.

The use of the tariff determination methodology as a tool for not only promoting local manufacturing but also facilitating new entrants of young entrepreneurs and port innovation must be encouraged and be rewarded where it is due. I understand that the Ports Regulator will share some of those approaches when they address us later this morning.

Master of ceremonies;

The present policy and legislation of government requires that we corporatize the National Ports Authority with a separate Accounting Officer and a Divisional board.

This consensus I understand was negotiated and agreed upon We must move with speed to ensure a transition to a corporatized port entity. I will be tasking the National Ports Consultative Committee to advise me on the steps that must be undertaken to implement this crucial piece of legislation with greatest of efficiency, working with Minister of DPE.

Later on, the Transnet Ports Authority will be sharing with us their challenges and future plans. I would like to acknowledge the huge contribution by the entire TNPA from the Chief Executive, Harbour Masters, and Port Managers and to men and women enabling South African trade.

Their successes in driving ability to invest and deliver massive infrastructure projects to the value of R20.37 billion requires a special recognition. Investment in skills development, innovation, research and development are the reason why businesses grow and governments experience efficiencies.

Businesses and or governments who do not invest in these areas become victims of their own circumstances. Since I was assigned to this portfolio, I have committed to establishing Transport Innovation Hubs (TIH).

Part of what has motivated me to push for this is that without science, technology and innovation (STI), we cannot transform and position the sector to be part of, and benefit from, the Fourth Industrial Revolution. We all to come together to mobilize significant investments into STI.

There are also many bright young people with lots of ideas for innovation in the transport sector, and we need to find a way to create an environment for such creativity to thrive. So please work with me in realising what would become our future transport innovation paradigm.

Our country is ranked number 10 of countries manufacturing luxury boats. The boat building sector is indeed one of the strongest and well-established of maritime subsector.

Participating in the Department of Trade and Industry’s programme of export promotion of South African manufactured goods and products, the sector has grown exponentially.

The CMTP has however identified the need for the Department working in collaboration with Department of Science and Technology, the Department of Trade and Industry and other relevant organs of state, to promote appropriate technologies for manufacturing, infrastructure and boat & ship repair.

Ladies and gentlemen

We now see Africa’s Maritime Sector increasingly being recognised as a key strategic driver of increased African trade and economic development, both directly and indirectly. There is growing momentum and attention focused on the sector and its potential role as an engine for growth, industry transformation, and job and business creation.

The African Union has the 2050 Africa Integrated Maritime Strategy, or “AIMS” in recognition of the role that the ports of the AU Member States have to play in economic and social development, and the fight against poverty and unemployment.

We are indeed pleased to have the South African President Cyril Ramaphosa as the Chair of the African Union in 2020. This is important as it will assist in helping South Africa in accelerating the maritime agenda within the context of the African Continental Free Trade agreement execution. How do we as a sector make use of such opportunities?

The Africa Maritime Indaba 2020 will be convened here in South Africa with the Pan African Maritime stakeholders including the Women In Maritime Africa (WIMAAfrica), a body that is recognized by the AU.

That is another key platform for our sector and for increased participation by all potential beneficiaries. I understand that the Vice President, of WIMAAfrica, Mrs Ipeleng Selele is present here with us today. Madam we are delighted to have you here.

The 2020 Maritime Indaba will give an update of the progress of AIMS 2050, which provides the foundation for public and private maritime policy and practice across Africa. It will begin to raise awareness of its core precepts, to catalyse dialogue on its contents and intent, and to begin to identify its potential to act as a blueprint for national maritime strategies for Africa’s maritime nations.

The signing by our President of the Africa Continental Free Trade Area, the (AfCTFA) agreement in Nouakchott, the capital of Mauritania, means that we have joined more than 50 African states who have already signed the AfCTFA as commitment to facilitating a single market for goods and services on the continent.

I also understand that the African Development Bank (AFDB) will be holding its meeting here in November 2019 and that there is an appetite for investment into maritime infrastructure to be part of their agenda. This calls upon our entrepreneurs to come up with innovative projects and opportunities in the sector.

We just do not need passive shareholders in the sector, but active, skilled and knowledgeable and entrepreneurial participants in the development of the sector. In welcoming this development we must therefore put a plan for interacting with the African Bank.

We have now gone beyond conceptual frameworks, we can no longer be in a state of unending planning, and we need to accelerate the implementation. As has been communicated widely, South Africa will also be hosting the IMO 2020 World Maritime Day Parallel event.

The 2020 event is set to demonstrate how far we have progressed in maritime affairs. This will also present South Africa with an opportunity to attract attention and potential investments into the development of our oceans economy. Since becoming Minister of Transport, I have participated in a number of trade missions including Russia, China, and most recently Cuba.

My Department has advised me that the Maritime International Relations and Technical Cooperation Committee (MIRTC) as envisaged in the CMTP is being established next month. The MIRTC will enhance the planning and execution of our maritime economic diplomacy.

I also understand that, consultations are at advanced stage toward the establishment of the BRICS Maritime Forum. Further consultations will be undertaken in the margins of the forthcoming BRICS Summit taking place in Brazil in August 2019.

I would wish to encourage the setting up of these structures as they will go a long way in ensuring that we engage internationally with a very clear articulation of what our international maritime strategic approach is.

Ladies and gentlemen

I thank you all for responding to the invitation to the inaugural maritime Transport dialogue event and I have no doubt that you shall find it useful in advancing the transformation of the sector and accelerate the achievement of our key CMTP Strategic Objectives.

Dialogue such as this provide a valuable opportunity for research scientists, industry specialists and decision-makers to share experiences. I am grateful to the many experts who have come to share their knowledge in this dialogue.

I especially want to welcome members of the Panel of Experts to the Minister of Transport that I am bringing together to act a sounding board on key transport policies and programmes as well as catalyst research and innovation in the sector.

I also welcome the many representatives of governments, industry associations and NGOs who have joined us. I am sure you will have fruitful and rewarding exchanges today and tomorrow.

I wish you every success with this important dialogue and I look forward to learning about the outcome. I am sure you will have fruitful and rewarding exchanges today and tomorrow.

I wish you every success with this important dialogue and I look forward to learning about the outcome.

I thank you

National maritime sector transport indaba underway in Durban

Durban: 29 February 2019

A national maritime sector transport indaba convened by the Department of Transport over two days and involving government, various of its entities including the South African Maritime Safety Authority (SAMSA), private sector companies and academia is currently underway in Durban.

According to Minister of Transport Dr Blade Nzimande, the event on Thursday and Friday is a dialogue to promote strong relationship between government and private sector regarding developments, challenges, opportunities and transformation in the country’s maritime sector.

“The two-day discussions will also take into consideration the Comprehensive Maritime Transport Policy (CMTP) which outlines strategic guidance to transformation and gender parity in the maritime sector, job creation and stimulating the marine for economic development,” the department said a statement.

It said key topics for discussion over the next two days include; government’s maritime transport strategic objectives, key challenges and opportunities relating to safety of navigation along South Africa coast, unlocking maritime sector development through the delivery of strategic infrastructure in ports, industry development and transformation, maritime women empowerment in Africa, opportunities and challenges for coastal shipping as well as the country’s Mining Charter and its link with the maritime sector.

Minister of Transport, Dr Blade Nzimande (Right) during a live national television interview at the port of Durban on Thursday morning ahead of the start of the Department of Transport convened Maritime Sector Transport Dialogue over two days, ending on Friday.

In explaining further the thinking behind the gathering described as the first dialogue of its kind for the maritime sector, Dr Nzimande said: “I have decided as part of the commitment I made when I accepted the appointment as Minister of Transport for the Republic of South Africa to promote a much deeper dialogue between government and the transport industry inclusive of all other stakeholders with direct or indirect interest in the transport industry.

Transport Minister Dr Blade Nzimande during opening of the Department of Transport convened Maritime Sector Transport Dialogue in Durban on Thursday

“A great deal of what has interested me in this sector is not only its complexity, but most importantly its power to transform every sector of the economy. Transport has also a social transformation dimension for, through improved access and affordability, it has an ability to deepen social interaction almost at all levels.

“If then transport has such power to cause or bring about change, it means when managed well, it is no insignificant contributor to total transformation of society. It could therefore be suggested that an untransformed transport sector limits the ability of society to fully transform.

“But what I have observed is a much deeper question or challenge of our industry and, that is, its inability to talk within itself. This question has therefore kept me wondering in how we could create a transport dialogue platform of not only the transport stakeholders but also its customers and the society at large.

“There is lot that can be achieved when working cooperatively and collaboratively across all transport sectors. I have therefore decided to launch the Transport Industry Dialogue series and I aim to achieve a much closer working relationship between government, labour and business.

“It is through these dialogues that the mission of transport that of transforming society will be better shared and possibly understood better for decisive and integrated actions.

Some of the delegates to the Department of Transport convened two days maritime sector transport dialogue over two days beginning on Thursday in Durban.

“The inaugural Maritime Transport dialogue event is the first one in the series not only because of the globalizing nature of maritime transport, but because we also aim in 2019 to accelerate the implementation of the Comprehensive Maritime Policy (CMTP) as approved by Cabinet in 2017.

“South Africa is a coastal state surrounded by three oceans and yet we are yet to fully enjoy the benefits of being a coastal state through our ocean based economy. The CMTP calls us to develop South Africa to become an international maritime centre.

“This inaugural maritime dialogue will, from now on, become an annual feature in the maritime calendar and I have no doubt of its ability to help us achieve this desire of being an international maritime Centre,” said Dr Nzimande.

This blog will carry further updates on Thursday through to the weekend in multimedia format.

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Mpumalanga to host South Africa’s 2018 celebration of the World Maritime Day

Pretoria: 14 July 2018

South Africa’s claim to being a maritime country and upon whose 3200km long shoreline rests only four of its nine provinces – the Northern Cape, Western Cape, Eastern Cape and KwaZulu-Natal – does not imply exclusion of the internal provinces from the country’s broad maritime sector activities.

For this and related reasons, this year’s celebration of the International Maritime Organization (IMO) driven World Maritime Day on 27 September 2018 has been officially confirmed as scheduled for Mpumalanga – one of South Africa’s five internal provinces, this one bordering two neighboring countries; Swaziland and Mozambique.

Formal confirmation of Mpumalanga’s official host status for this year’s World Maritime Day celebrations was made by Transport Minister, Dr Bonginkosi Nzimande in Britain recently.

Dr Bonginkosi Nzimande. Minister of Transport

Addressing the IMO Council’s 120th Session in London held from the 02-06 July, Dr Nzimande said observation annually of the World Maritime Day by South Africa was consistent with the country’s full commitment to and unwavering support for the IMO’s activities in the promotion of maritime economies development across the world.

“We are very proud to be members of this organization and we are honoured to have served the IMO Council in the role of Vice Chair for an extended period. Our service to Council is well documented.

“My presence here represents a statement of renewal of our commitment to the IMO and I can assure you that my country and my people are highly impressed and honour many women and men who have contributed to the 70 years’ history of the IMO,” he said.

Consistent with this, Dr Nzimande noted that the IMO’s theme for this year’s celebration would be focused on the United Nations (UN) agency’s 70 year annivessary and committed that South Africa would follow suite.

“As part of South Africa’s commitment with the IMO, South Africa will host World Maritime Day 27-28 September 2018 in Mpumalanga Province. The event will be held for two days under the theme; “IMO 70: Our Heritage – Better Shipping for a Better Future.

“During the celebration South Africa will make a career exhibition to showcase careers in the maritime sector to the young South Africans with the aim to introduce more leaners to the careers available in the maritime sector and also to showcase the milestone of the maritime sector to the rest of the local communities,” he confirmed.

Meanwhile, Dr Nzimande also outlined South Africa’s progress with revision of some of its maritime sector legislation, but precisely the Merchant Shipping Act of 1951.

He said: “Mr Chair, my country has recently adopted its Comprehensive Maritime Transport Policy (CMTP). Following the adoption of the CMTP, we are now in the process of realigning our domestic legislation in line with the CMTP and in this regard, we have made great progress in reviewing the Merchant Shipping Act of 1951.

“The Maritime Transport Strategy (MTS) is being finalised.”

Dr Nzimande said further that: “Mr Chair I am reporting on these matters firstly as a way of sharing information on the progress we have made in addressing some of the fundamentals of being a maritime nation but secondly to say that we are open to sharing our experiences through the technical cooperation programme of the organization (IMO).

Dr Nzimande also confirmed South Africa’s new approach to observing the international Day of the Seafarer as had occurred last month, where the event was staged in three of South Africa’s major coastal cities simultaneously for the first time in the eight year history of the event.

International Day of the Seafarer 2018 celebrated in three coastal cities simultaneously for the first time in South Africa

Seafarers on board SAMSA owned national cadet training vessel, the SA Agulhas taking time out to enjoy Day of the Seafarer 2018

He said: “Mr Chair like many other Member States of the IMO, South Africa celebrated on 25 June 2018, the Day of the Seafarer. This year we launched Seafarer Dialogue Platforms (SDPs) in three cities, i.e. Durban, Cape Town and Port Elizabeth. I have declared that Seafarers’ Dialogue Platforms will become the feature of the future celebrations of the Day of the Seafarer.”

During the address of the IMO Council session, Dr Nzimande also formally confirmed South Africa’s deposit of the instrument of accession to (formal ratification of) the International Convention on Standards of Training, Certification and Watchkeeping for Fishing Vessel Personnel, 1995 (STCW-F 1995) with the Secretary-General of the IMO.

Summarily, the STCW-F 1995 is an agreement binding on IMO Member States to “undertake to promulgate all laws, decrees, orders and regulations and to take all other steps which may be necessary to give the Convention full and complete effect, so as to ensure that, from the point of view of safety of life and property at sea and the protection of the marine environment, seagoing fishing vessel personnel are qualified and fit for their duties.”

Dr Nzimande described South Africa’s submission of its ratification of the convention as signifying the country’s “commitment to bettering the lives of fishing folks.”

Following to this in Cape Town on Wednesday this past week, the South African Maritime Safety Authority (SAMSA) that is responsible for ensuring implementation of the convention held a 6th session of a Fishing Indaba to share the development with domestic stakeholders.

SAMSA’s Fishing Indaba delves deep into safety issues in Cape Town 2018

In London, with the formal announcement, Dr Nzimande also urged IMO Member States who had not yet ratified the Cape Town Agreement on the implementation of the Torremolinos Convention to “do the right thing as immediate as possible.”

“In conclusion, permit me Mr Chair to thank the IMO for putting its trust on South Africa by allowing us to host the 2020 IMO World Maritime Day Parallel Event. We are exactly 791 days from today to October 2020 when we will welcome many of you to witness the progress we would have made by that time.

“This being the Centenary of two of our liberation heroes, Mr Nelson Mandela and Mrs Albertina Sisulu, let us lead by the example they left for us by being steadfast in our search for solutions to challenges facing shipping today,” he said

See also: Maritime World University post graduate qualifications get South Africa’s nod: Dr Nzimande confirms.

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South Africa’s maritime sector transformation long overdue! Space must open for all South Africans to participate: Department of Transport

ships at sea Pretoria: 09 February 2018

The launch recently of South Africa’s Comprehensive Maritime Transport Policy (CMPT), coupled with the revised Merchant Shipping Act, as well as envisaged full implementation of the National Ports Act (No 12. 2005) can be expected to see rapid transformation of the country’s maritime economic sector, according to the Department of Transport.

Such transformation crucially will involve the deliberate creation of space for all South Africans to participate in the economic sector and with that process, the attraction of new and expanded investment and much needed job creation, Transport Department acting Deputy Director-General, Mr Mthunzi Madiya said in Cape Town.

He was addressing guests to the South African Maritime Safety Authority (SAMSA) annual Stakeholders Dinner held at the Mt Nelson Hotel in Cape Town on Wednesday evening.

As many as 60 guests – most of them major and lead players in the various subsectors of the country’s maritime sector – attended the event.

In his brief address, Mr Madiya said from a government policy development and implementation perspective, the country’s maritime sector no longer had an excuse about why it cannot rapidly transform as well as increase financial investment.

“The responsibility of government is to develop policies. On the 15^th of July 2017, Minister of Transport launched the Comprehensive Maritime Transport Policy. It was a milestone for the sector for various reasons, as we were always reminded that the reason why there was no transformation was because there was no industry policy certainty and therefore we needed a policy.

“South Africa today has the policy that needs to be implemented. We want transformation,” he said, adding that Government was hopeful that the sector would be sufficiently incentivized to not compel the hand of Government to forcefully use the new laws to engender needed transformation.

He said a CMPT strategy would be presented to Cabinet for approval before the end of the current financial year. Once approved, the strategy would allow for the targeting of investment opportunities in especially what he described as ‘low handing fruit’; coastal shipping of particularly bulk and liquid cargo along the country’s 3200km coastline.

Also the revised Merchant Shipping Act of 1951 would be presented to Parliament for formal approval in a few months, he said.

Getting the buzz of the South Africa maritime sector during this year’s SAMSA stakeholder’s dinner ahead of the opening of South Africa’s Parliament in February 2018

According to Mr Madiya, desperately needed and overdue transformation of the sector to create space for all South Africans would be all encompassing, inclusive of the utilization of the country’s vast ports land.

He said: “The National Ports Act is the biggest instrument to force the industry to transform. We are talking about what is happening in the real estate of the National Ports Authority and the Act responds to this. We feel we need to do something because that’s what the Act says.

“If your tenure comes to an end after 20-25 years, the law says you must vacate the port so that new tenants can come in and Transet has been very clear on this that whoever then participates, must have a minimum of 51% black ownership.

“We hope and we trust that we will be able to use those instruments to make sure that people who had never had an opportunity, are given an opportunity to participate in the ports space.”

Mr Madiya also confirmed the formal approval of the SAMSA Funding Model by the Department of Transport following a month’s long consultative process with stakeholders in the maritime sector.

He said with the approval, SAMSA could now begin to implement it in order to ensure a sustainable source of income going forward.

In addition, he said, a salvage strategy had also been finalized and the department would be engaging with SAMSA on what next was needed to be done to ensure effective implementation.

Further, Mr Madiya reemphasized the crucial role played SAMSA as the Department of Transport’s implementing agency, and that the department would do all in its power to ensure the agency was sufficiently empowered and resourced to pursue its mandate that includes the promotion of the country’s maritime interests locally and abroad.

To listen to the full speech of Mr Madiya, Click on the video below.