SA minerals mining industry,Treasury commit to aid efforts to boost domestic shipping development: SAMSA

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Some of the participants at the first South African Shipping Industry Workshop organised by the South African Maritime Safety Authority (SAMSA) at the Sheraton Hotel in Pretoria on Tuesday, representing trade cargo ship owners, mineral resources mining, policy makers as well as regulatory authorities directly involved with sectors impacting the shipping sector.

Pretoria: 31 August 2018

Efforts by the South African government to hasten the pace of developing the country’s ocean transport sector and precisely through rapid growth in registration of more cargo carrying vessels under the country’s flag, took yet another positive step forward this week following to a historic agreement between shipping owners, the South African Maritime Safety Authority (SAMSA) and the Mineral Resources Council of South Africa to enter formal discussions.

The development came about during the first formal South Africa Shipping Industry Workshop organized by SAMSA and held at the Sheraton Hotel in Pretoria on Tuesday. Participants included representatives of various Government institutions and departments inclusive of transport (DoT), mineral resources (DMR), Trade and Industry (DTI) Treasury, Transnet National Ports Authority (TNPA) as well as private sector ship owners and the minerals industry representatives under the Mineral Resources Council of South Africa (MRCSA).

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Ms Selma Schwartz-Clausen. Senior Manager: SAMSA

It was the first of a series of workshops planned by SAMSA for the country’s shipping subsector.

According to SAMSA, the issue focused consultations with directly affected and or interested role players in South Africa’s shipping transport subsector both in the private and public sphere, along with important current and potential contributors in the value chain, are an effort to hasten the pace of development of shipping ownership in South Africa to address a range of socio-economic development matters.

These include transformation in the sector through actual increased ownership of shipping vessels under the South African flag by a diverse group of people, increasing the share of rendered services in the subsector, as well as enhance opportunities for maritime skills development.

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Mr Andrew Millard. Director: VUKA Marine

Of the country’s minerals mining sector in particular, according to Mr Sobantu Tilayi, Chief Operations Officer of SAMSA, the drive to draw the sector into the fray comes against the backdrop that much of South Africa cargo for trade export – estimated at 300-millions tons per annum valued at about R110-billion – comes from the sector.

This, he says, is particularly true of manganese and iron ore as well as coal.

Yet, of about 13 000 trade cargo vessels reporting at South Africa ports to deliver imports and ship out local produce annually, only less than a handful of vessels registered under the country’s flag are participating, a clear indicator, he says, that the local economy is barely benefitting its own people through the shipping business as hugely as it could.

This he says, is inconsistent with both country’s National Development Plan (NDP) as well as other socio-economic development needs.

He said while by law, the Government could stipulate what it considers an equitable share of cargo for locally registered ship owners and has occasionally been encouraged to do so, SAMSA felt it prudent to rather first give opportunity for engagement with all stakeholders in discussions and persuasion towards a shared common goal.

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Mr Sobantu Tilayi. Chief Operations Officer: SAMSA

Speaking of Tuesday’s first workshop in the series he said:  “We thought it would be proper for us to get this small grouping of people just so that we begin find that one value proposition for South Africa Inc. We chose stakeholders within the bulk shipping industry such as the cargo owners and ship owners as well as policy makers and regulatory authorities.

“The intention was to find all the impediments in the subsector so that we can move on to find out what it is that we need to do to extract maximum value for the South African economy.

“This is the first of a series that we plan to hold with all role-players in the shipping industry, the next being that involving liquid bulk and also general cargo.

“I am pleased to say that the initiative was indeed worthwhile as we have now agreed with the Minerals Resources Council of South Africa for the first time ever to enter formal engagement with their members about this, but also Treasury committing to a process to clear out all the remaining tax issues affecting the shipping subsector,” said Mr Tilayi.

Meanwhile, in yet another positive development, Mr Tilayi confirmed that the South African Ship Registry could see more vessels registered – with at least two more before the end of 2019. This latest edition would bring to about half-a-dozen ships in the registry, with three others likely to come onto the group early in the new year.

For more on this as well as the views of one of South Africa’s newest ship owner, Thuso Mhlambi, financial director at Linsen Nambi Bulk Services, click on the two videos below (3 and 2 minutes respectively).

Video 1: Mr Sobantu Tilayi

Video 2: Mr Thuso Mhlambi

More videos of the actual discussions on Tuesday will be place on this blog soon.

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Sustained collaboration remains key to meaningful maritime sector development: SAMSA

Cape Town: 09 February 2017

KEEPING IN TOUCH: SAMSA acting Chief Executive Officer, Mr Sobantu Tilayi (Left) and SAMSA Board Chairman, Mr Mavuso Msimang chatting to one of more than 60 maritime economic sector principals attending a networking session by SAMSA on Wednesday evening.
KEEPING IN TOUCH: SAMSA acting Chief Executive Officer, Mr Sobantu Tilayi (Left) and SAMSA Board Chairman, Mr Mavuso Msimang chatting to one of more than 60 maritime economic sector principals attending a networking session by SAMSA on Wednesday evening. Looking on (extreme Right) is SAMSA Company Secretary, Mr Moyahabo Raphadu

Continued collaboration through regular engagement and exchange of ideas, views and opinions among key role players and interested parties remains the key to any positive achievements in the redevelopment and growth of the country’s maritime economic sector, according to the South African Maritime Safety Authority (SAMSA).

This, according to SAMSA Board Chairman Mr Mavuso Msimang, was the underlying message behind a networking session hosted by the organization in Cape Town this past week, involving more than 60 officials from across subsectors of the country’s maritime sector as well as State departments and organizations.

img_4388Several of the industry principals and government officials were in the Mother City for Thursday’s 2017 State of the Nation Address (SONA) in Parliament by President Jacob Zuma.

The networking session, a feature of SAMSA’s stakeholder engagement program, served also this year as a precursor to more robust formal engagements in the next few months among which will be the 2nd South Africa Maritime Investment Conference (SAMIC 2017) currently earmarked for Port Elizabeth in the Eastern Cape in the first half of this year.

DSC_0148This will occur just over two years after the launch of Operation Phakisa (Ocean Economy) in 2014 which event firmly placed the country’s maritime economic sector central to the country’s broad economic development goals.

img_4397On Wednesday evening, Mr Msimang, flanked by some members of the SAMSA board as well as executive managers including acting Chief Executive Officer, Mr Sobantu Tilayi; hosted the exclusive networking dinner for the maritime sector leaders at the Harbour House restaurant located in the heart of a quaint small fishing habour in Kalk Bay – some 30km south east of central Cape Town.

Global economic uncertainty remains

In his brief remarks to the group, Mr Msimang noted that global economic activity was not at its best and that recent political developments around the world, but specifically the exit of Great Britain from the European Union (a.k.a Brexit) and the recent outcome of the United States presidential elections had added economic risk factors with unpredictable consequences for global trade currently.

img_4407He said the same could be said of South Africa’s own socio-political and economic situation.

Mr Msimang said it was against the scenario that it remained absolutely important that various partners to the country’s maritime economic development sector continue to work closely together in managing and solving emerging challenges as well as in exploring for profit all opportunities.

He said SAMSA appreciated its role as facilitator and committed it that: img_4411“We will endeavor to promote events like this with the hope that the platform provided will enable people to talk and engage much more easily. We will support the industry in its deliberations with various government policy owners as well as playing our part in the governance of the maritime economic sector.”

(For some of Mr Msimang’s remarks, Click Here)

There are reasons for optimism

Meanwhile, in his welcoming remarks, Mr Tilayi noted that while the country’s maritime economic sector continued to experience a set of problems and challenges requiring sustained engagement with particularly government, there were reasons to be optimistic.

img_4419He said current joint efforts between government and industry could see more positive outcomes achieved, particularly in relation to policy development, ships registration under the country’s flag, a rejuvenation of the country’s fishing sub-sector vessels fleet through recapitalization, as well as renewed impetus in efforts towards the sustained development of the country’s cadre of seafarers and related.

Mr Tilayi emphasized however, the critical importance of continued engagement among key role players in the sector, also stressing SAMSA’s continued facilitation role between industry and government.

(For some of Mr Tilayi’s remarks: Click Here)

Mr Andrew Millard, a director of shipping group, Vuka Marine – Cape Town based owners of the first three shipping vessels to carry South Africa’s flag in 2015 – expressed appreciation of the role played by SAMSA and indicated that while there were numerous challenges facing the sector still, there were also numerous reasons for optimism, particularly with regards expansion of a vessel fleet carrying the country’s flag  – a particular development deemed vital to especially the training of a cadre of South African seafarers.

(For more of Mr Millard’s remarks: Click Here)

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