Legislation the final cog needed to ready South Africa for new low sulphur ship fuel requirements

DSC_2166.JPGPretoria: 28 July 2019

South Africa will be ready to implement new global ships fuel regulations aimed at prevention of air pollution by ships at sea, but may have to pick up pace putting in place prerequisite legislation to legalise the process.

This was the general consensus view of more than 100 industry and government delegates to a purpose fit two day national consultative workshop in Cape Town this past week.

DSC_2100.JPGAmong those attending were representatives of various sub-sectors of the maritime transport industry, fuel producers and distributors, bunkering services providers, ship owners and shipping agents, cargo owners, academics, various government departments representatives including the Environmental Affairs, Forestry and Fishing ministry, the Department of Energy, the Department of Transport, as well as the South African Maritime Safety Authority (SAMSA).

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Dr John Calleya. Technical Officer: IMO Sub-division for Protection Measures Marine Environment Division.

Also attending was an International Maritime Organisation (IMO) senior official to provide guidance and insight into the global implementation of the new 0.50% sulphur limit in ships fuel come 1 January 2020.

The new regulations are in terms of the IMO’s MARPOL Convention (Annexture VI) whose goal, according to the IMO is to further reduce air pollution by ships through emission.

The revised regulations for the prevention of air pollution from ships under the MARPOL (Annex VI) were adopted in October 2008 and ratified by more than 65 countries including South Africa.

In terms of this, all sizes of ships sailing on the world’s oceans will need to use fuel oil that meets the 0.50% limit from 1 January 2020. The 0.50% sulphur limit extends to carriage of bunker fuel with sulphur content of more than 0.50% for vessels not fitted with Exhaust Gas Cleaning Systems (EGSC). The carriage ban will come into effect on 1 March 2020.

According to SAMSA, ships must operate using compliant fuels of 0.50% sulphur or less from 1 January 2020 unless they are provided with an approved ‘equivalent’ means of compliance.

In part preparation for the implementation of the new regulations, next January, SAMSA had issued two Marine Notices ( Marine Notice No. 8 of 2019 and Marine Notice No. 9 of 2019 ) to industry, and may yet issue another soon.

At the two day workshop in Cape Town on Wednesday and Thursday this past week, among  issues discussed by the delegates were matters concerning; the availability of fuel that meets the new requirements, the proper handling of ships coming into South African ports without the compliant fuel, the availability of facilities to test fuels in use by ships, the handling of vessels using non compliant fuel but fitted with sulphur reducing equipment. 

Delegates also explored the subject of the coming implementation of the new ship fuel requirements both in its environmental and economics perspectives. All agreed that from an environmental context, these were necessary measures, but with possible economic implications that were not all too rosy, at least in the short term.

Crucially, by the time they dispersed on Thursday afternoon the attendees were generally confident that all key role-players were well positioned and prepared to contribute to the success of the implementation of the regulations from the set launch date of 1 January 2019.

However, a key instrument to knead it all together would be a yet non existent but crucially important piece of legislation to legalise the implementation of the new regulations – a task that is the responsibility of the Department of Transport along with SAMSA.

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Mr Sipho Mbata. South Africa’s Alternate Permanent Representative to the IMO. London.

This, all delegates were agreed, it needed to be expedited without further delay and South Africa’s Alternate Permanent Representative to the IMO, Mr Sipho Mbata said he believed crafting the legislation would be achievable as it only required the Minister of Transport to facilitate the enactment process.

According to Mr Mbata (who also chatted quite extensively with this blog about the entire Marpol Convention and particularly the relevant annexture to the Cape Town workshop), the most viable approach to passage of the necessary legislation would be in the form of an annexture to already existing law, rather the a bill process that would take anything up to two years prior to enactment.

He expressed confidence that this would not present a problem as facilitation for passage of the necessary legislation only required the Minister of Transport.

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Mr Sobantu Tilayi. Acting Chief Executive Officer: South African Maritime Safety Authority (SAMSA)

Meanwhile, SAMSA acting Chief Executive Officer, Mr Sobantu Tilayi, described the gathering and consensus seeking two day workshop for the maritime transport sector in Cape Town as a crucial step towards an ensuring that all role-players were singing from the same hymn book.

For his full remarks, Click on video below.

IMO representatives, Dr John Calleya, a technical officer in IMO’s Protection Measures for Maritime Environment division described the workshop and level of discussions as highly positive towards ensuring that South Africa would be prepared by the implementation date.

He also expressed appreciation for the industry representation during the workshop. For his full remarks (1minute 45 seconds), Click on the video below:

Meanwhile, in the video below, Mr Mbata gives a full perspective of the endeavors behind the IMO Marpol Convention on the combating of pollution by ships and South Africa’s important role in ensuring its success. Click on the video below.

This news information may be updated with edited video clips of the workshop proceedings including contributions by the various role players, as well floor discussions. These will be uploaded as soon as available.

‘South Africa is open for business’: Vuka Marine – owner of now three SA registered cargo ships

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Pretoria: 22 June 2019

South Africa’s ship registry has been given a boost with the registration of yet another vessel operated by Vuka Marine, bringing to close on half a dozen the number of operational ships now carrying the South African flag in world oceans.

The Vuka Marine cargo vessel known as the Windsor Adventure: Port Elizabeth, was formally welcomed into the country’s ship registry at a ceremony held in the city of its registry and home, the port of Port Elizabeth this past week.

DSC_0837.JPGGuests attending included representatives of the Department of Transport (DoT), the Ports Regular of South Africa, the Transnet National Ports Authority (TNPA), the Eastern Cape provincial government, the Nelson Mandela University (NUM), the South African International Maritime Institute (SAIMI), the South African Maritime Safety Authority (SAMSA) and other business and institutions representatives.

DSC_0764.JPGVuka Marine is a joint venture between Via Maritime of South Africa and K-Line of Japan.  The company is currently moving about 2.5-metric tons of ore per annum, mainly on the first two capesize bulk carriers that it flagged in South Africa in 2015.

The latest addition is the third cargo ship operated by Vuka Marine to be registered under the South African flag and the fifth so far in the registry since launch of the SAMSA driven campaign to revitalise the commercial ship stock registered in South Africa about a decade or so ago – an apparently painstaking venture it has proved to be to date.

At the port of Port Elizabeth on Tuesday, both senior national and provincial government officials attending, including the Eastern Cape’s MEC for Transport, Ms Weziwe Tikana, expressed delight at the growth of ships now coming carrying the South Africa flag, however slow, and also acknowledged the need for speed in adding more into fold of the registry in far higher numbers if the country was to realise its ambitions of developing the country’s maritime economy transport sub-sector, develop skills and create employment.

DSC_0804.JPGIn the videos below, all six speakers – Captain Brynn Adamson (Harbor Master: Port of Port Elizabeth; Mr  Mahesh Fakir (CEO: Ports Regulator SA), Mr Metse Ralephenya (Marine Transport: DoT), Mr Andrew Millard (CEO: Vuka Marine), Mr Sobantu Tilayi (acting CEO: SAMSA) and Ms Weziwe Tikana (MEC for Transport: Eastern Cape) were unanimous in praise of the joint effort and close collaboration being achieved in delivering on the ship registry campaign. They also expressed determination in ensuring that hiccups currently being experienced, especially with taxation and related business costs of ship registration under the South African flag must be resolved.

In their order of appearance, Capt: Adamson said the port of Elizabeth was proud to be the home of no less than four operating vessels registered calling the port their home.

The four include the three operated by Vuka Marine and one other operated by bunking services company, Aegian. For his full remarks, click on the video below.

Ports Regulator, Mr Mahesh Fakir elaborated on financial incentives now approved in preference of vessels coming under the South African flag, as well as necessary operational conditions expected of ships registered in South Africa which he said were consistent with the country’s maritime sector developmental goals.

This was coming against the backdrop that South Africa relies on about 12 000 foreign vessels to carry 96 per cent of its exports to the rest of the world each year, leaving it strategically vulnerable.

On incentives, Mr Fakir said South Africa currently offers up to 30 per cent discount on port dues by ships locally registered. On operational conditions, among other things, he said it was important that vessels carrying trade goods outbound and inbound, as well as personnel manning the vessels, should increasingly be South African.

For more on his remarks, Click on the video below:

“South Africa is open for business….” were the closing remarks of Vuka Marine CEO, Mr Andrew Millard in summation of both his company’s experience and achievements in its quest for registration of its cargo vessels dating as far back as 2009 and one of which only got registered in 2014.

Among notable achievements being increasingly realised was the placement to date of some 50 young South African cadets on its vessels, the absorption of about dozen of these into full-time employment, and a current recruitment campaign for more young trainees known in the sub-sector as ‘ratings’.

He said Vuka Marine was also keen to assist the country’s ship registry through sharing experiences with ship operators keen on carrying the South African flag.

Mr Millard’s views were earlier echoed by the company’s chairman, Mr Andrew Mthembu, who remarked: “We are thrilled to welcome the Windsor Adventure into Vuka Marine’s fleet. This acquisition demonstrates our ongoing commitment to the development of the South Africa’s maritime industry, the national registry, and our seafarer population.”

For Mr Millard full remarks, Click on the video below:

For SAMSA, the campaign to enrol more commercial cargo vessels in the country’s ship registry had proved tedious, unnecessarily at times due to lack of co-operation by some important institutions.

“We are 95% towards setting up everything in place to ensure a smooth operation in  drawing ships into the country’s registry, but that five per cent that’s outstanding is the difference between success and failure'” said SAMSA acting CEO, Mr Sobantu Tilayi.

Issues involving taxation were among the impediments, but so was more closer co-operation and collaboration necessary from particular the Transnet National Ports Authority (TNPA), he said. For his full remarks Click on the video below.

Ms Weziwe Tikana, MEC for Transport in the Eastern Cape described it as befitting that newly registered vessels under the SA flag had their home in the province. She said the province had the privilege of having the second longest coastline in the country after the Western Cape but had little to show for it so far. However, she said, since launch of Operation Phakisa (Oceans Economy) by government in 2014, the province had resolve to increase its economic contribution to the country’s Gross Domestic Product based on maritime economic sector growth,

This, she said, was necessary not just for economic growth but also for social transformation and higher participation by all South Africans.

For her full remarks, Click on he video below:

DoT’s Marine Transport directorate official, Mr Metse Ralephenya was full of praise that ‘pressure’ from the department on SOE CEOs involved in maritime transport was truly beginning to pay off handsomely, and vowed on behalf of DoT to ensure that necessary support by government was given.

For his full remarks, Click on the video below.

While being celebrated, the 56 000dwt Windsor Adventure was busy taking on board yet another load of locally mined minerals destined for overseas markets.

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End

 

 

South Africa readies for IMO Marpol new ship fuel requirements effective January 2020

SAMSA to meet maritime transport stakeholders in an indaba in July 2019

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(File Photo)

Pretoria: 30 May 2019

South Africa will be ready to implement new global regulations governing the prevention of air pollution by ships at sea, in terms of the International Maritime organization (IMO) MARPOL Convention (Annexture VI), so says the South African Maritime Safety Authority (SAMSA).

In a statement on Thursday addressed to maritime sector and related stakeholders (Click on video) SAMSA; a State agency under the Department of Transport, responsible for among other things; the safety of life and property at sea, as well as prevention of pollution at sea by ships, said it was confident that South Africa would both be able to offer sailing ships the required new low sulphur fuel in terms of the Marpol Convention (Annex 6), as well as render such other services as necessary under the new regulations.

Revised regulations for the prevention of air pollution from ships under the MARPOL (Annexture 6) were adopted in October 2008 and ratified by more than 65 countries including South Africa.

In terms of this, a ll sizes of ships sailing on the world’s oceans will need to use fuel oil that meets the 0.50% limit from 1 January 2020. The 0.50% sulphur limit extends to carriage of bunker fuel with sulphur content of more than 0.50% for vessels not fitted with Exhaust Gas Cleaning Systems (EGSC). The carriage ban will come into effect on 1 March 2020..

According to SAMSA, ships must operate using compliant fuels of 0.50% sulphur or less from 1 January 2020 unless they are provided with an approved ‘equivalent’ means of compliance.

As part of its preparation for the coming into effect of the regulations next January, SAMSA has issued at least two Marine Notices ( Marine Notice No. 8 of 2019 and Marine Notice No. 9 of 2019 ) to industry, and is due to issue another in the next month or so.

SAMSA’s statement on Thursday followed the organization’s most recent meeting with the IMO Maritime Environmental Protection Committee (MEPC) in London two weeks ago.

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South African Maritime Safety Authority (SAMSA) acting CEO, Mr Sobantu Tilayi

SAMSA acting Chief Executive Officer, Mr Tilayi said introduction of the MARPOL Convention regulation on low sulphur ships fuel scheduled for implementation from 01 January 2020 would go ahead as planned.

“It’s all systems go as far as that is concerned and it’s a big piece of legislation with far reaching consequences. What we now need to do as a country is to put in place the regulations necessary to effect the process from January 2020.”

As part of the preparation, Mr Tilayi said SAMSA would arrange a maritime transport sector meeting of directly affected stakeholders as well as government departments or agencies responsible for environmental and energy matters.

“The reason is that we still have a number of issues that remain a major challenge and which we collectively need to look into and come up with solutions for. Therefore we, as SAMSA, are proposing a gathering of all stakeholders in the second week of July 2019 or thereabouts, in which we will sit around the table and thrash these issues out,” he said.

Among the issues for sector discussion and resolution were matters relating to the proper handling of ships coming into South African ports without the compliant fuel, the availability of facilities to test fuels in use by ships, the handling of vessels using non compliant fuel but fitted with sulphur reducing equipment etcetera.

The proposed maritime transport sector indaba for July 2019, he said, would allow all interested and affected parties an opportunity to come up with solutions that would assist in the finalization of local regulations for the implementation of the IMO Marpol Convention on use of low sulphur fuels.

End

 

 

 

Maritime transport sector in for a shake-up and shape-up phase: Transport Ministry

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Durban: 02 March 2019

South Africa’s maritime transport sector is poised for a significant shake-up and shape-up phase over the next few years including the possible corporatization of the Transnet National Ports Authority (TNPA), establishment of innovation hubs, reconfiguration of maritime education and training as well as a push towards domestication of local shipping trade transport occurring along the country’s and southern region coastal areas.

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Minister of Transport; Dr Blade Nzimande

That is according to South Africa’s Minister of Transport, Dr Blade Nzimande in an address to delegates to the country’s inaugural maritime transport sector dialogue held in Durban on Thursday and Friday this week.

The gathering at the Southern Sun Elangeni Hotel on the Durban beachfront and with its focus on the maritime transport sector, was the first in a series planned for the country’s transport industry over the next few months and years.

Guiding focus of the maritime transport sector dialogue was the recently promulgated Comprehensive Maritime Transport Policy (CMTP), a product of the National Transport Masterplan (NATMAP) 2050, aimed at facilitating collective pursuit and achievement of maritime sector economic development targets some set under the country’s Operation Phakisa: Ocean’s Economy programme for the next decade.

Among other things, the CMTP requires the Department of Transport to ‘initiate programmes to holistically and coherently grow and develop the South African maritime transport sector.’

On Thursday in Durban, Dr Nzimande who celebrated his first full year as Minister of Transport in February, said several proposals towards fulfillment of the goal were on the table for consideration. Among these was the setting up soon of a Maritime Transport Sector Development Council (MTSD), a development delegates to the dialogue have since endorsed.

Dr Nzimande said the council may be up and running by June 2019, even if on an interim basis pending finalization of its member composition and related matters.

Transnet National Ports Authority (TNPA) corporatisation

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However, also on the cards was a contemplated corporatisation of the country’s ports management entity, the Transnet National Ports Authority (TNPA), with a view to unlocking vast economic opportunities identified within the country’s ports area of contribution and influence.

Dr Nzimande said “The present policy and legislation of government requires that we corporatize the Transnet National Ports Authority. I will be tasking the National Ports Consultative Committee to advise me on the steps to be undertaken to implement this crucial piece of legislation.

“I know that there is a debate (about this) because there are some people who are not wild about this idea. But a debate is good.”

He said this would take place against the backdrop of recognition that the country’s ports regulator was already doing a sterling job in creating a conducive and investor friendly environment at the ports, and also helping to reduce costs of doing business in the economic zones.

For Dr Nzimande’s remarks on the topic, Click on the 3 minutes video below

Transport innovation hubs

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Dr Nzimande said another crucial intervention would be the establishment of transport innovation hubs to facilitate the harnessing of talent and skills in the development of solutions to the country’s transport sector, inclusive of the maritime sector.

Describing this as something ‘very close to my heart’, Dr Nzimande said: “I am really committed into investing in having transport innovation hubs. We are not going to transform the transport sector generally, or any mode of transport, without investment into science, technology and innovation.”

Illustrating the particular importance of this aspect of development, Dr Nzimande drew an example about the country’s rail transport and said it was inconceivable that in modern times, trains in South Africa were still colliding randomly on railways when transport mobility technology had so advanced such that such collisions should be history.

He said the innovations hubs would facilitate the promotion and harnessing of science, technology and innovation ideas for deployment in areas of transport to help improve both functionality as well as efficient services. He said he would set up a task team to explore and pursue the idea towards implementation.

For Dr Nzimande’s remarks on the topic, Click on the 3 minutes video below

Focused education, training and skills transfer

On education and training, Dr Nzimande said empowerment and transformation in the sector was proving futile in the absence of proper and relevant education, training and skills transfer.

He said black economic empowerment was meaningless if it was limited only to shareholding while those sought to be empowered knew next to nothing about managing and understanding businesses in the maritime economic sector.

Towards addressing the situation, Dr Nzimande said his department would engage with various role-players inclusive of the Department of Higher Education and Training, with a view to establishing a dedicated education, training and skills development focus for the sector.

For his remarks on this aspect, Click on the video below:

Domestication of shipping and localization of content

Dr Nzimande also reflected on a number of issues inclusive of the need for a South Africa owned fleet of shipping vessels, as well as an increase in local content in the boat and ships repair and manufacturing subsectors.

On development of locally owned or registered ships, Dr Nzimande said coastal shipping could be supported in various ways inclusive of local mining output, but also the shifting some of the road transported goods onto ships that would service the southern African region.

With regards utilization of local content in ship repair and manufacturing, he said empowerment through shareholding by South Africans in operations that were importing goods that could be manufactured locally actually amounted to dis-empowerment as such schemes derived no meaningful and sustainable benefits for the local economy.

For his full remarks on this topic, Click Here:

For Dr Nzimande’s full unedited full speech, click here

End

Development council proposed for maritime sector: Dr Blade Nzimande

DSC_9520.JPGDurban: 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.

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Minister of Transport, Dr Blade Nzimande

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.’

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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.

DSC_9530Remarks 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