Dolphin’s Leap on Port Elizabeth’s beachfront, the venue of the Operation Phakisa: Ocean Economy seminar on clustering in the South Africa maritime economic sector, involving a range of thought leaders from South Africa and Norway
Establishment of clusters in South Africa’s maritime economic sector could have far more advantages for business owners in the sector than is derived by companies operating in isolation and in silos as is currently the case now. Among other things, the existence of a cluster would rather than eliminate competition, create synergies characterized by greater co-operation with shared benefits along values chains.
This was the strongest sentiment to emerge on the first day of a two day seminar on Operation Phakisa: Ocean Economy – Exploring opportunities towards a national maritime cluster for South Africa – attended by a range of thought leaders from South Africa and on Norway, on the need for development of clusters in the country’s maritime sector.
Delegates to the Operation Phakisa (Ocean Economy) two day seminar currently being held in Port Elizabeth, Eastern Cape.
Several speakers, among them Ms Judy Beaumont, acting Director-General of the Department of Environmental Affairs, Dr Malek Pourzanjani, CEO of SAIMI and Mr Prasheen Maharaj, CEO of Shipyards said the launch of Operation Phakisa: Ocean Economic in 2014 provided South Africa an ideal platform upon which industry in the country’s maritime economic sector and government could collaborate to ensure rapid and sustainable development of the sector for the benefit of all South Africans.
Crucial to it all, however; was intentional and determined engagement both within the maritime business sector with a view to establishing effective collaborative channels, but also between the sector and the public sector.
Ms Judy Beaumont, acting Director General of the Department of Environmental Affairs
Ms Beaumont outlined the nature and purpose of the Operation Phakisa (Ocean Economy) programme as well as the milestones achieved to date since its formal launch in 2014. She described the programme as intended to both develop and transform the sector for integration into the country’s mainstream economy for the benefit of all South Africans.
According to Ms Beaumont, the initiative has certain characteristics among which is the need for speed in implementing identified projects, but also the work undertaken jointly through cooperation and collaboration among stakeholders.
In his adress Dr Pourzanjani said; “This seminar is being held under the banner of Operation Phakisa to explore the establishment of a national maritime cluster. As with Operation Phakisa itself, the success of such a cluster will depend on the involvement and collaboration of all maritime role-players and sectors – it is not something that a single entity or authority can make happen on their own.”
Dr Malek Pourzanjani, Chief Executive Officer of the South African International Maritime Institute (SAIMI)
According to Dr Pourzanjani, industrial clusters are not a new phenomenon and already exist in some other business and industrial sectors, such the country’s motor manufacturing, tourism and other services industries.
In Europe, he said; the European Network of Maritime Clusters drew its membership from 17 countries and just two weeks ago had met with the European Commissioner for the Environment, Maritime Affairs and Fisheries, Karmenu Vella, where optimism was expressed that “maritime clusters are blooming across Europe”.
These maritime industries, according to Dr Pourzanjani accounted for about five-million jobs and just less than five percent of the E.U’s G.D.P.
He said:” The value of clustering lies in their supportive environment for collaboration and innovation, which in turn assists industrial and small business development, employment creation, and overall value-added economic growth.”
Mr Maharaj said a currently dominant sense of self-preservation and advancement among especially what he described as a “few large companies and few Government employees” was not helping South Africa’s cause as the attitude to business development enabled only a handful to live well “while millions of our people are left jobless and poor.”
Dr Prasheen Maharaj, Chief Executive Officer, SA Shipyards
According to Mr Maharaj, quoting Algeria president Ellen Johnson Sirleaf as newly appointed head of ECOWAS, “Africa is not poor, it is poorly managed.”
He said: “Through Operation Phakisa, the Government is unveiling a new Marine Manufacturing and Industrial policy framework. This policy focuses on opportunity, growth and innovation in niche markets where South Africa can compete.
“It recognizes the value of marine transportation as an important industrial infrastructure, with environmental as well as economic benefits. And it focuses on partnerships, as it is only by working together that we can succeed. So the key to success is collaboration to drive innovation, resulting in greater efficiency and competitiveness.”
The same view was shared by Mr Peter Miles co-founder and executive of the Nelson Mandela Metropolitan Maritime Cluster established some three or so years ago.
According to Mr Miles, each of the port cities along the coast of South Africa should have a maritime cluster and through which a national cluster could be anchored, with a coordinating role. He suggested also that there should be a fund established to assist the formation and ongoing administration of the clusters.
According to Mr Miles, the funding could be raised through a rand-for-rand contribution from both the public and private sectors.
Meanwhile, a host of Norwegian industry, research and education experts have and continue to share their experience of clusters in that country’s maritime economic sector, with their overwhelming message being that South Africa’s sustainable success with its Operation Phakisa (Ocean Economy) will depend largely on such collaborative structures.
Norwegian ambassador to South Africa Ms Trine Skymoen in Port Elizabeth, Eastern Cape on Monday.
Led by Norway’s ambassador to South Africa, Ms Trine Skymoen, the Norwegian continent includes Ms Anne Lene Dale, Director for Economic and Commercial Affairs, Ministry of Foreign Affairs, Dr Ing Alf Egil Jense of the Norwegian Science & Technology, Dr Aase Kaurin of the Norway Research Council, Mr Svein Fjose of Menon Economic), and Dr Kristin Wallevik, the Dean of the University of Agder.
The two day seminar wraps up with a tour of the port of Port Elizabeth on Tuesday afternoon.
Eastern Cape steals national limelight on progress of South Africa maritime economic sector development
Port Elizabeth: 08 April 2016
“SIYAQHUBA (We are making progress)” (From Left) Eastern Cape Province Premier, Mr Phumulo Masaulle with Nelson Mandela Metro Mayor, Dr Danny Jordaan at the port of Pot Elizabeth on Friday, 08 April 2016. The pair flanked South Africa President, Mr Jacob Zuma during his inaugural national public report on the progress achieved to date with Operation Phakisa (Ocean Economy) since its launch in Durban in 2014.
The Eastern Cape province asserted its lead in the stakes for the country’s maritime economic sector revival when Government used the region on Friday (08 April 2016) as the host of the country’s inaugural national progress report on the implementation of Operation Phakisa (Ocean Economy).
Flanked by no less than five Cabinet Ministers along with some Members of Parliament, representatives of the Eastern Cape provincial government led by their Premier, and Nelson Mandela Metro local government council led by its Mayor; President Jacob Zuma used the port of Port Elizabeth on Friday to give a most comprehensive and first formal public report of progress achieved to date since launch of the Operation Phakisa (Ocean Economy) program in 2014.
Even as dire the current economic conditions, Mr Zuma sounded highly optimistic but especially about the both the progress being achieved as well as its positive outcomes in the not so distant future.
South Africa’s economic growth is predicted likely to grow by no more than a percentage point in 2016, or less; due to factors emanating from both internally and globally, and that recovery may be a year or three away.
However, while this might point to a gloomy economic picture in the short term, it was no reason for pessimism in the medium to long term as the situation also presented a golden opportunity for investment in sectors lacking concentration, among them the country’s maritime economic sector, long neglected until about half a decade ago.
“SIYAQHUBA” – On hand to deliver the Government’s first public report on the progress achieved so far with Operation Phakisa (Ocean Economy) were Cabinet Ministers that included (From Left), Mr Senzeni Zokwana, Minister of Agriculture, Foresty and Fisheries; Ms Edna Molewa, Minister of Environmental Affairs; (centre right), Mr Jeff Radebe, Minister in the Presidency) pictured here while waiting for their turn for interviews for a national television breakfast show in Port Elizabeth on Friday, 08 April 2016.
Prior to his taking the podium almost two hours later than scheduled at the eleventh hour, under a mega marquee that housed as many as 10 000 people, erected at length east to west to counter the notorious PE wind, and yet barely 20 meters from the seashore in the industrial area of the port of Port Elizabeth dominated by the dusty mounds of manganese ore and a foul smell of kerosene from megaliter storage tanks of liquid fuel – a set of features of the port long at issue will local residents and business – the Cabinet Ministers, Directors-General, and some leaders of State Owned Enterprises in his tow; sought to unpack the story from early morning.
In the lead under the blinding lights of national television cameras was Minister in the Presidency, Jeff Radebe; followed in no particular order by fellow Cabinet Ministers that included Minister of Environmental Affairs, Ms Edna Molewa; Minister of Agriculture, Forestry and Fisheries, Mr Senzeni Zokwana; Minister of Public Enterprises, Ms Lynne Brown as well deputy Minister of Transport, Ms Sindisiwe Chikunga, and who were ably assisted by Eastern Cape Premier, Phumulo Masaulle as well as the Mandela Bay metro council leader, Dr Danny Jordaan.
Theirs was largely confined to a national television audience hosted by SABC2 Breakfast Show anchored by Leanne Mannas, thereafter by the SABC News Channel boxed in the pay television network, DStv, the latter which also carried live the President’s report from lunch-time.
Operation Phakisa (Ocean Economy) Progress Report: Part of the port of Port Elizabeth under the spotlight on Friday
Prior to Mr Zuma’s main delivery of the Operation Phakisa (Ocean Economy) progress report, the Government delegation led by Transnet officials at the National Ports Authority were taken on a tour of the harbour for a view of various new upgrades and particular infrastructure developed to expand business investment opportunities in the maritime economic sector in the region.
These included a new jetty slipway, as well as a new 90 ton boat hoist for boat repairers said to be only the second of its kind in the country. The entourage also boarded and toured a new a multi-million rand worth tug named Tug Mvezo, delivered from Durban only a few days earlier. The tug is named after the village near Mthatha recognized internationally for being home to global statesman, South Africa’s first president under the democratic dispensation, Nelson Mandela.
With the inspection and tours having taken longer than anticipated, Mr Zuma finally arrived at the mega marquees to a thunderous applause of song and dance from a crowd of people officially said to have touched the 10 000 people mark, and rendered rather most colourful by the dominant yellow, green and black colour attire made up of ANC T-shirts with a mixture of ANC leaders’ faces including Mr Zuma.
It was not inconsistent.
The Port Elizabeth metro (encompassing Uitenhage, the seat of German carmaker, Volkswagen; and nearby Dispatch, a town in between) is named after Nelson Mandela and its Main Street is now known as Govan Mbeki – in honour of one of the stalwarts of the black liberation struggle, and father to Mr Mandela’s successor as country president; Mr Thabo Mbeki.
Operation Phakisa (Ocean Economy) Progress Report: Part of the audience of 10 000 people that came to listen to President Jacob Zuma’s report at the port of Port Elizabeth on Friday, 08 April 2016.
The audience for Mr Zuma on Friday also varied by age, from the youngest – several below the age of 10 years old and some of whom momentarily lost contact with their minders – to the reasonably old; and a number of whom also occasionally dozed off in the contained steamy heat of the sun and sea made no less uncomfortable by the indifferently tight walls of the giant marquees.
With children losing contact with their minders in a decidedly irritating frequency, Programme Director, Mr Mlibo Qhoboshiyane – a member of the Eastern Cape provincial government responsible for Local Government and Traditional Affairs; at one point threatened to have ‘locked up’ any parent whose child was found to have lost contact with – to the applause of the audience.
Operation Phakisa (Ocean Economy) Progress Report: President Jacob Zuma delivering his report television live from Port Elizabeth on Friday, 08 April 2016
In his speech, Mr Zuma said Government was relatively pleased with the progress being achieved under the Operation Phakisa (Ocean Economy) program, but especially the Maritime Transport and Manufacturing lab, as earmarked infrastructure development involving significantly billions of rand of Government investment was gathering speed across ports in the country, from Saldanha Bay at the far western end of the Western Cape Province to Durban in KwaZulu-Natal.
But crucially he said; was the need for speed in the creation of job opportunities and alongside which was a programme for education, training and skills development for many aspirant maritime economic sector career seekers.
Operation Phakisa (Ocean Economy) Progress Report: School pupils from two High Schools in the Eastern Cape, George Randall High and Ngwenyathi High Schools in East London, the first such public schools to deliver maritime economic sector dedicated education curriculum
With regards the latter, Mr Zuma pointed to two recent significant developments; the enrolment for the first time ever of two public high schools in the Eastern Cape – the George Randall and Ngwenyathi High Schools in East London – for delivery of maritime economic sector education curriculum, and which was preceded two years earlier by the establishment of the South African International Maritime Institute (SAIMI) to focus on education, training and skills development as well as academic research into the sector.
Aptly, SAIMI – an initiative spearheaded by the South African Maritime Safety Authority (SAMSA) in partnership with, among others; the Nelson Mandela Metropolitan University (NMMU) and the Department of Higher Education, is the first institution of its kind in the country wholly dedicated to human resources academic and vocational skills development and upliftment precisely for the country’s maritime economic sector, and located in the Eastern Cape; a region of the country reputably the ‘second poorest’ even as endowed with 900km of a coastline – the second longest after the Western Cape.
Only four of South Africa’s nine provinces are along the 3200km coastline stretching from the Atlantic Coast to the west, the Southern Ocean to the south and the Indian Ocean to the east, and therefore with a direct claim to an Exclusive Economic Zone of the oceans that stretches for more than 1.5 million square kilometres.
The location of SAIMI in Port Elizabeth, Eastern Cape; reportedly funded currently to the tune of about R300-million, is largely due to the region’s eminent interest in contributing significantly to the revival of the country’s maritime economic sector.
The Cape Orchid, the first commercial cargo vessel registered to carry South Africa’s flag in 2015 since about 30 years ago. (Image: SAMSA)
From a sea trade or transport perspective, the province lays claim to three major ports, two in Nelson Mandela Bay and another in East London, in addition to a sprinkling of fishing harbours dotted along the coastline between Plettenberg Bay at the western border with the Western Cape province, through to East London.
The Nelson Mandela Metropolitan University at which SAIMI is accommodated, and one of four universities in the province, had notably long taken a lead in expressing interest in efforts for the revival and placement of the country’s maritime economic sector central in South Africa’s socio-economic development agenda.
Operation Phakisa (Ocean Economy Progress Report: (Right) Nelson Mandela Metropolitan University (NMMU) Vice Chancellor, Prof Derrick Swartz with (From Left), Eastern Cape Premier Mr Phumulo Masaulle and Mandela Bay Mayor, Dr Danny Jordaan at the port of Port Elizabeth on Friday, 08 April 2016.
The university is reportedly the first in the country to establish a functional relationship with the Malmo (Sweden) based World Maritime University and on the basis of which South Africa has been dispatching annually scores of Masters and Doctoral students for maritime studies since 2013.
With the location of SAIMI in the windy city, the country’s only dedicated cadet training vessel the SA Agulhas has found home here, as has the first commercial cargo vessel registered under the country’s flag, the Cape Orchid domesticated in the city.
Indeed, on its first voyage abroad, loaded with tons of iron ore destined for China last October, the Cape Orchid had also taken on-board a batch of cadets for training for a period of six months. Two of these young men were from villages in the mostly rural Eastern Cape.
On Friday Mr Zuma said the Eastern Cape remained poised to make even greater contribution to the country’s maritime economic revival – and about which he said most people countrywide knew little to nothing about until recently – and urged for collaboration and co-operation to ensure Operation Phakisa (Ocean Economy) delivered on its goals.
To the extent that the Eastern Cape gained the recognition it deserved in this regard, Friday was a good day in Port Elizabeth and it was a good day for the Friendly City.
An elated ANC supporter brandishing two dolls dressed in the party”s colours during President Jacob Zuma’s visit to Port Elizabeth on Friday, 08 April 2016.
At least that was impression on the faces of many among the thousands that came to welcome Mr Zuma’s report.
Mr Zuma said he would be back in the city in a week’s time, but this time for the launch of his party, the ANC’s local government election manifesto.
South Africans go to the polls for local government elections on 03 August 2016.
Lookout for the audi-visuals of the event on this blog later on.
Verging on becoming the world’s Top 10 maritime nation, South Africa firms up its Oceans Research capabilities through enhanced collaboration.
Docked at the port of Cape Town in October 2015, the SA Agulhas II, South Africa’s dedicated research vessel owned and operated by the Department of Environmental Affairs (DEA). Photo: SAMSA
South Africa’s increasing focus on expanded development of its maritime economic sector should soon yield dividends for especially much needed research, and maritime sector education in general.
It is through research, education and skills development that desperately sought-after economic opportunities in the maritime sector can be identified, thereby opening doors for entrepreneurship and business investment, and which in turn should lead to job creation and increased employment, wealth sharing and ultimately poverty reduction.
It is a long held recognition in the country but which has gained more currency and airtime notably since the historic inaugural all-embracing maritime sector indaba: the South African Maritime Industry Conference (SAMIC) held in Cape Town in 2012.
Yet, even as broadly acknowledged at the SAMIC four years ago and indeed, in prior and subsequent industry or sub-sector imbizos and related, ocean space focused research in the country has hitherto been sparse and decidedly shallow and isolated, undertaken separately by different groups including mainly the State, education institutions and the private sector, in line with their peculiar interests and goals.
This led summarily to not only excessive costs for individual groupings, compounded by unnecessary duplication in some cases, but also to poor collation, quantification, coding and utilization of accumulated knowledge.
However, a groundswell of events currently clearly suggests that this is about to change, fast.