It’s all systems go for bunkering services in South Africa: SAMSA

Pretoria: 05 May 2024

Ships bunker services provision in South Africa – inclusive of off-shore operations – is well on track, with applications, approvals and issuance of licenses currently being managed expeditiously, the South African Maritime Safety Authority (SAMSA) has confirmed.

However, according to SAMSA’s Acting CEO, Mr Tau Morwe, operators have to ensure that they are compliant with requirements of SAMSA as well as both the South African Revenue Services (SARS) and the Transnet National Ports Authority (TNPA).

Mr Morwe made the confirmation on the status quo of bunkering services in South Africa during a day long maritime sector bunkering services roundtable meeting attended by about 80 people in Durban on Tuesday. (30 April 2024).

Representatives included industry principals, primarily ship owners and agents and some of whom are active bunkering services providers, state officials from Treasury, SARS, the Department of Transport, Department of Forestry, Fisheries and Environment, TNPA, Ports Regulator South Africa and SAMSA; ship-to-ship services providers and interested or affected parties – among them, environmental groups – as well as delegates from Mauritius, Mozambique and Namibia.

Mr Morwe’s remarks came in the wake of an apparent entrenching confusion or misunderstanding in the country’s maritime sector about the real state of bunkering services provision and administration, this coming in the wake of a clampdown by SARS on certain operators related to taxation issues during the latter part of 2023, as well as a ‘moratorium’ said to have been placed on the issuing of licences.

Flanked by Mr Mahesh Fakir, the chairperson of SAMSA’s Board of Directors, in his closing remarks of the gathering, Mr Morwe stated: “Where SAMSA stands is that applications for off shore bunkering, in terms of Section 21 (1) b (Prevention and Combating of Pollution of the Sea by Oil Act. 1981) is in process. Anyone can make the application.

“The TNPA and SAMSA are agreed on the continued processing of applications. However, in the processing of the applications, we remind applicants that we are not the only regulator, and they (applicants), have to tick the TNPA box, ensure that they are compliant with SARS. If that is in place, there is nothing preventing applicants or operators from conducting business. That is the state of affairs.”

“… there is nothing that says the business (of bunkering) is closed. I repeat, anyone wanting to apply for an operator license may do so. Tick the SARS box, tick the TNPA box!” said Mr Morwe.

For his full remarks, click on the video below.

_{Mr Tau Morwe, SAMSA Acting CEO making his closing remarks at the SAMSA organised Maritime Sector Bunkering Services Round Table Event held in Durban on Tuesday, 30 April 2024 .}

Meanwhile, for a complete coverage of the SAMSA organised Maritime Sector Bunkering Services Round Table event in Durban on Tuesday last week, this blog captured as best it could the meetings’ proceedings as presented below. The only record unavailable, due in part to technology limitations, is that of regulators from Mauritius, Namibia and Mozambique who all were planned to make a virtual appearance online.

Key take-aways:

Bunkering along with related ship-to-ship transfers services have a long history in South Africa and remain a major business and economic opportunity for sustained expoitation, given the country’s almost perfect geolocation at the foot of the African continent, with an ocean space global shipping corridor that is equidistant between western and eastern countries.
With expansion of particularly bunkering services to off shore, notably in Algoa Bay since 2016, the regulatory domain has lagged behind for clarity, leading to disruption and confusion as evidenced by a 2023 SARS clampdown on some operators in Algoa Bay due to taxation related matters
The haitus has led to vast loss of business opportunity and income in the past few years especially since the break-out of strife and wars affecting major shipping lines in the Middle East and eastern Europe and which led to an increase in shipping traffic sailing along the Cape of Good Hope ocean corridor.
SARS related regulations are in the process of being finalised and should soon be operational.
Going forward, SAMSA, the TNPA and SARS are the key (but not exclusive) state institutions whose regulations operators – current or aspirant – must comply with.
Overall, there is an agreed need both by the relevant state institutions (SAMSA, TNPA, SARS, Ports Regulator, DFFE) and the private sector for closer cooperation and collaboration between the regulatory institutions, as well as about ongoing engagement and interaction with all stakeholders and interested parties in the maritime sector.
A commitment is reached that established forums in the bunkering subsector as well as periodic maritime sector and regulators roundtable meetings shall continue into the future.

In the package below, in the order of their appearance and presentations, first up are Welcoming and Opening Remarks by Mr Morwe and Mr Fakir respectively, in which they broadly outline the standpoint of SAMSA on the state of bunkering administration in South Africa.

_{Mr Tau Morwe, SAMSA Acting CEO making his welcoming remarks.}

_{Mr Mahesh Fakir, SAMSA Board chairperson making his opening remarks.}

Next are representatives of the Ports Regulator, TNPA and SAMSA on the status quo of bunkering services.

_{Transnet National Ports Authority (TNPA) presentation}

^{Ports Regulator SA presentation}

_{South African Maritime Safety Authority (SAMSA) presentation}

Following are representatives of the Treasury, SARS and the DFFE on “Government on bunkering risk, opportunities and enablement.”

_{Treasury Department presentation}

_{South African Revenue Service (SARS) presentation}

^{Department of Forestry, Fisheries & Environment presentation}

_{Question & Answers Session 1}

Finally, below – in no particular order – are representatives of industry (including the South African Association of Ship Owners and Agents (SAASOA), on their own individual and group perspectives, afterwhich a final Question and Answer Session ensues.

_{Mr Dan Ngakane, CEO of Amsol.}

_{Mr Peter Besnard, CEO of SAASOA}

_{Mr Kurt Theunis: Linsen-Nambi Bunkering Services}

_{Mr Stuart Klapprott: MOL Chemical Carriers}

^{Ms Nomkhitha Mbele: James Fisher Fender Care}

_{Question & Answers Session 2}

End.

SAMSA hosts a bunkering stakeholder engagement roundtable Tuesday with maritime industry key role figures

Pretoria: 25 April 2024

South Africa’s maritime bunkering services subsector comes under national focus on Tuesday, 30 April 2024, wherein government, relevant state institutions, industry representatives, as well as interested parties will gather in Durban for a round table discussion to chart a way forward for the sector, says the South African Maritime Safety Authority (SAMSA).

Among notable participants earmarked for this event will be representatives of various stakeholders, including – from government – the Office of the Presidency, the Minister of Transport, the Department of Forestry, Fisheries and Environment (DFFE), Transnet National Ports Authority (TNPA), the Ports Regulator, SAMSA, the South African Revenue Services (SARS); private sector maritime industry principals, as well as international delegates from neighbouring Mozambique and Namibia.

According to SAMSA, the bunkering sector roundtable event’s aim is to facilitate a direct engagement and interaction among key stakeholders for a discussion and sharing of views on matters impacting the subsector, as well as development of possible solutions to ongoing challenges as a way forward.

For specifically SAMSA, the entity says; the event will facilitate it an opportunity to provide clarity on pertinent issues, and among which is its specific role pertaining to bunkering business operations.

SAMSA intends to also provide clarity regarding an enduring misunderstanding over a ‘moratorium’ on bunkering that SAMSA management says it had initially explained to industry through at least two Maritime Information Notices.

Also, with offshore bunkering in Algoa Bay, Eastern Cape province, also currently halted since about late 2023 due to taxation related matters between bunkering services providers operating here and SARS, Tuesday’s event, says SAMSA; may facilitate provision of further clarity on where matters stand currently with regards new bunkering sector related regulations recently published by SARS for public input.

The DFFE is also anticipated to enrich the discussions with information pertaining to environmental protections measures involving bunkering and offshore STS services.

According to SAMSA the roundtable event in Durban on Tuesday comes at a time when bunkering services, now inclusive of offshore ship-to-ship transfers have significantly advanced the trajectory of shipping transport in the country – and an economic activity the entity says it is committed to ensuring its future sustainability.

The Department of Transport (DoT) entity is responsible for regulations that govern bunkering services, inclusive of issuing licences, under four pieces of enabling legislation. These include the Marine Pollution (Civil and Control Liability) Act 1981, the International Convention for the Prevention of Pollution from Ships Act of 1986, the Merchant Shipping (Civil Liability Convention) Act 2013 and the Maritime Zones Act 1994.

In SAMSA’s view, South Africa’s geolocation at the southern tip of the African continent, equidistant between western and eastern continents through a sea channel constituted by three oceans, the Indian, Southern, and Atlantic Oceans, places the country in an advantageous position for extensive bunkering services to the world’s ship transport fleet.

By SAMSA’s own account, no less than 9 000 vessels per month pass through this ocean corridor, and along which its 3200km coastline nestles no less than eight (8) modern commercial ports through which trade goods destined for South Africa and the southern African region are handled.

According to SAMSA, with the expansion of bunkering services through introduction of offshore services in Algoa Bay, Eastern Cape province in April 2016, the subsector has since generated and injected millions of rands to the local economy.

In this period, three (3) licensed operators deployed a fleet of twelve [12] bunker vessels and from whose operations -involving as much as of 4, 3-million metric tons of fuel sold – flowed substantial economic contribution to the area and central to which was the development of dozens of small to medium enterprises that in turn, contributed to generation of no less than 300 direct jobs.

These included shipping agents, shipping chandlers, OPL launch boat owners, diving services providers, oil spill response services, bunker surveyors, accommodation services providers and numerous others.

SAMSA also indicates, however, that the with expanded bunkering services to include offshore ship to ship services, so also increased exponentially risks to the environment inclusive of wildlife.

The risks associated directly with both the increase in vessel traffic anchoring locally for bunkering services, as well as incidents of potential and actual oil spills.

Notably, according to SAMSA, there has been four (4) oil spills recorded involving about 1,6 tons of fuel that impacted the local ocean environment in Algoa Bay, Gqeberha, and the last of which was in May 2022.

To mitigate against this aspect and find balance to enhancement of both the massive economic opportunity but also the strict protection of the environment, SAMSA led initiatives falling within the scope of its own mandate, for the development of appropriate bunkering services management measures.

Among these were the introduction of the South African Bunkering Code of Practice and Ship-to-Ship Codes of Practice for use as guidelines to services providers, as well as the formation of an Offshore Operations Stakeholder Forum (OOSF) with three working groups focussed on environment, industry development as well technical aspects of the bunkering services subject.

On Tuesday’s event in Durban, SAMSA says the platform is reflective and exemplary of its unwavering commitment to work closely with maritime industry stakeholders in pursuit for fulfilment of its mandated objective to ensure effective sustainable safety measures to protect life and property at sea, prevent and combat pollution of the sea environment by the ships, and promote South Africa’s maritime interests.

“This event will also serve as a platform for sharing knowledge, debating critical issues, and charting a forward-looking course for bunkering activities in South Africa as well as those that are in hindsight,” said SAMSA.

End.

Ports Consultative Council a key cog in South Africa’s ports management: SAMSA

Pretoria: 10 June 2019

Democratization of South Africa’s ports space is among key goals of the establishment of the country’s Ports Consultative Committee (PCC).

The PCC is a statutory structure set up by Government with a view to ensuring that all economic participants at the country’s major ports have equal access and contribution to management of the ports infrastructure and associated resources.

This is according to the PCC Secretariat, the South African Maritime Safety Authority (SAMSA) during the holding of the first ever meeting of Gauteng based ports stakeholders in Johannesburg recently. Johannesburg is South Africa’s financial capital with several investors in the country’s ports based on or operating from the inland city.

The PCC was established by the Department of Transport in terms of sections 80(1)(a), (c), (d) and (g) of the National Ports Act, 2005 and has been operational in the country’s nine commercial ports for some time since.

The PCC’s presence and role also fulfills part of the mandate of the Ports Regular of South Africa which requires that the regulator “must conduct a public participation process as part of the economic review in each of the ports, including conduct one or more public hearings in the manner set out in the Directives issued by the Regulator in terms of the Act.”

Some of Gauteng based SA ports stakeholders attending this year’s first Port Consultative Committee roadshow in Johannesburg on Wednesday 29 May 2019.

In this year’s round of ports stakeholder consultations involving roadshows from Richards Bay in the east coast through to Saldanha Bay in the west coast, the PCC for the first time included Gauteng based ports stakeholders, with a meeting held at a venue near O.R Tambo international airport on Wednesday, 29 May 2019.

Ms Selma Schwarz-Clausen, a senior official of SAMSA charged with handling the secretariat responsibility of SAMSA for the PCC, described the first ever staging of the meeting for Gauteng based ports stakeholders a major step forward in ensuring broad and inclusive participation by all key and relevant stakeholders in the development and management of the country’s parts for economic beneficiation of all.

In the following video, Ms Schwarz-Clausen explains the role of the PCC and goals.

Mr Mahesh Fakir. Chief Executive Officer: Ports Regulator of South Africa

Also attending the meeting was Mr Mahesh Fakir, Chief Executive Officer of the Ports Regulator of South Africa. He also explained his role in National Ports Consultative Committee which he described as on the whole, as that of an observer who contributes in discussions if requested to do so, but “is not be permitted to participate in any voting or raise any objections to any action, decision, or advice proposed to be taken or given by the Committee.”

In the three (30 minutes video below, Mr Fakir briefly outlines the role of the Ports Regular in general as well as its interest in the work of the National Ports Consultative Committee.

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End

Legal wrangles likely to further delay port of Saldanha infrastructure development

Pretoria: Wednesday, 09 December 2015

Saldanha Oil & Gas 1

Planned development of the port of Saldanha on the West Coast could be further delayed by an ongoing legal wrangle between the Transnet’s National Ports Authority (TNPA), the Ports Regulator and private sector investors, Sunrise Energy and Avedia Energy, it emerged this week.

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

The possibility of further delays to the oil and gas port infrastructure development were highlighted by the Ports Regulator and CEO, Mr Mahesh Fakir earlier this week while attending a Presidential Imbizo week at the port of Saldanha to receive and evaluate NPA progress reports.
The Monday gathering involved stakeholders in the oil and gas industry of the maritime sector, government and involved parastatals’ officials including the South African Maritime Safety Authority (SAMSA).

The dispute apparently involves a contest over certain concessions made by the NPA to one of the private sector businesses, believed to be Sunrise Energy to build and operate a liquid petroleum gas (LPG) import facility in the port of Saldanha and against which Avedia Energy is reportedly most unhappy with.

The matter recently received a ruling of the High Court and about which Mr Fakir said the Ports Regulator might appeal against.

To read more on some particular details of the dispute click here or here

Below is Mr Fakir’s remarks on this and related issues: