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.

SA ship registry continue facing headwinds: SAMSA

Pretoria: 17 December 2019

The South African Maritime Safety Authority (SAMSA) has expressed regret and disappointment that growth of the South African Ship Registry is failing to gather speed, this due partly to lack of common vision and understanding among State entities.

SAMSA Board Member, Ms Sekabiso Molemane told maritime sector stakeholders during a regular briefing in Durban last week that the organisation had failed to reach targets for ship registration under the South African flag that it has set itself two years ago, adding that this was both ‘deeply disappointing” and “regrettable.’

DSC_9665 (2) — Ms Sekabiso Molemane. SAMSA Board Member

Ms Molemane described it as highly significant that private sector industries had been highly supportive of the Department of Transport’s agency, SAMSA, in its endeavours and instead, the greatest challenges seemed to emanate largely from lack of support by other State agencies; among them the South African Revenue Services.

Both Ms Molemane and SAMSA acting Chief Executive Officer, Mr Sobantu Tilayi went to great detail explaining how the poverty of support from other fellow State agencies or government was negatively affecting SAMSA’s efforts to develop and grow the SA Ship Registry.

She said: “We started the year with enthusiasm, hoping that by this time we’d maybe have 15 ships in our register…and we’d have addressed issues of tariffs. But disappointingly, we are still where we were two years ago.

“It is heartbreaking that, because when we consult with industry and we say we have a situation, it (industry) says, we are here to support you. But unfortunately we have challenges somewhere else. Somewhere else, where we are supposed to unlock, it’s always locked. It is either a change of Ministers, or it is something else. One thing I could not say though is that the industry failed us. I’d be lying,” Ms Molemane.

She added that the ship registry development was not the only one suffering lack of progress due to poverty of Government and State institutions’ support, but also systems development at SAMSA that both the agency and industry had identified as necessary to strengthen the effective performance of the organisation.

As a direct consequence, she said; issues that could be dealt with in a short period of time, sometimes took longer than necessary for SAMSA to deliver on. Even so, she told maritime sector stakeholders present at the function that: “Let’s not lose heart. Let’s hope that the best will come.”

For her full remarks, click on the video below.

Meanwhile, the South African Association of Ship Owners and Agencies (SAASOA), decried what it described as poor progress being made towards enhancing the country’s major ports cargo handling capabilities, citing a seeming apparent indifference by port authorities in addressing the matter.

Beznard 2019.jpg — Mr Peter Besnard. Chief Executive Officer: SAASOA

SAASOA Chief Executive Officer, Mr Peter Besnard said it was now a matter of public record that the country’s ports poor cargo handling was a problem and which had surfaced as far as back as 2014.

He said: “Without a doubt, it is not something that has happened overnight. It has build up over time and I can safely say it started in 2014. But it appears to be overlooked or ignored and the situation has simply worsened. It is not a situation that can be sorted out overnight. It will certainly take a few years and a lot of money to get us back on track to where we were before.”

For Mr Besnard’s full remarks on the subject, click on the video below:

Also sharing some insights into the country’s trade ports state as well as an overview on recent and current developments was Mr Mahesh Fakir, the country’s Ports Regulator.

Fakir 2019.jpg — Mr Mahesh Fakir. SA Ports Regulator.

According to Mr Fakir, a major highlight on tariffs this year was a 20% reduction on export containers which he described as intended to enhance the competitiveness of local goods in international market even as it would impact overall revenue for ports authorities.

“It (reduction) gives the country that ability to go out there and face the international market at a lower price, and that’s what the country needs as a shot in the arm to take this economy forward,” he said.

Mr Fakir said he believed that the country’s ports could perform even much better in cargo handling than is currently the case, were certain configurations to be made to improve them.

He cited a Colombian model he and senior officials of both SAMSA and the Department of Transport recently observed while attending the International Maritime Organisation (IMO) General Assembly Parallel Event in October 2019.

He described it as a model featuring partial ownership of ports by the State and the private sector – the latter involving individuals in areas where ports are situated.

For his full views on the matter click on the video below.

End

Arrested Chinese vessel faces more charges – to remain in custody until fines are paid: SAMSA

Pretoria: 18 May 2016

The Chinese fishing vessel, Lu Huang Yuan Yu 186 captured and arrested by South African authorities last weekend after being found to have conducted itself illegally, is to remain in South African custody until all fines imposed on its owners have been settled, alternatively, a court case is instituted, goes on trial and concluded.

An image of the Chinese vessel, Lu Huang Yuan Yu 186. Courtesy of Independent Online

This is according to the South African Maritime Safety Authority (SAMSA) which on Wednesday (18 May 2016) announced to have found that the vessel had contravened environmental laws governing the country’s territorial waters.

In the statement, SAMSA said its investigation had established that documentation of the vessel was in order. However, it had been found to have violated the country’s environmental laws governing the oceans. SAMSA confirmed that: “the fishing vessel was detained today and two Admission of Contraventions were issued to the master and owner of the vessel.

“The detention and fines were issued because of an unauthorised pump and flexible pipes from the engine room bilges directly over the side and that no Oil Record Book was available on board the vessel.

An image taken by SAMSA investigators aboard the Chinese vessel arrested in Cape Town and which show the condition of some of the water and oil management pipeline on the vessel. — An image taken by SAMSA investigators aboard the Chinese fishing vessel arrested in Cape Town and which show the condition of some of the water and oil management pipeline on the vessel.

“This is a direct violation of our marine pollution legislation. The vessel will only be released once the two non-conformities has been rectified and detention fee paid.

“We still have to wait to see if the master and owner will accept and pay the Admission of Contraventions or prefer to go to court, in which case we will have to lay charges at the police station and allow the law to takes its course,” said SAMSA in a statement.

The organisation further said that the country’s ports authority, the Transnet National Ports Authority (TNPA) and other relevant authorities had been notified of the detention.

DAFF briefed on findings

Earlier on Wednesday, SAMSA officials also met and briefed the Deputy Minister of Transport, Ms Sindisiwe Chikunga of their findings and determination following a visit and on board investigation of the vessel by the organisation’s surveyors on Monday afternoon.

A second image taken by SAMSA investigators aboard the Chinese vessel arrested in Cape Town and which show the condition of some of the water and oil management pipeline on the vessel.

The SAMSA findings and fines will be in addition to a set of others fines imposed on the vessel by other South African authorities including DAFF and SARS.

This followed the capture and arrest of the Chinese fishing vessel with nine crew on board on Friday last week off the coast of the Eastern Cape and berthed at the port of Cape Town.

It and several similar vessels believed to be from the same company, en route to the DR Congo were sought to be rounded up by DAFF officials for inspection following reports of suspicious behaviour, but refused.

According to DAFF, the vessels were initially rounded up and ordered to obey officials, but soon scattered and disappeared, except for the one that was eventually captured and arrested.

A DAFF spokesman, Ms Bomikazi Molapo said: “The crew claimed to have been travelling to the Democratic Republic of Congo where they claim they were going to fish and claim to have the necessary permits to do so. We have also established that this fleet of nine vessels is related and belong to the same company.”

Shortly after its berthing at the Cape Town harbour on Saturday, according to DAFF, rummaging was conducted on the captured vessel involving the South African Police Service (SAPS), the South African Revenue Services (SARS) as well as the Department of Home Affairs (DHA).

Ms Molapo said while the early investigators found no fish on board the vessel, it had however violated the country’s Marine Living Resources Act (MLRA) in that the fishing vessel entered the country’s EEZ without the authority of a valid permit.

“The vessel also contravened Section 56 (2) in that (the) Master or crew member of the fishing vessel in question, did not immediately comply with lawful instruction as given by a fishery control officer and also did not facilitate the safe boarding, entry and inspection of the fishing vessel,” she said.

Due to these violations, DAFF issued a seizure notice that will involve the vessel, its gear and equipment, stores as well as cargo.

In terms of this, the vessel will not be allowed to leave the port of Cape Town or relocate to any other berthing space within the port, unless authorized to do so by DAFF.

According to DAFF, SARS had also fined the vessel R8 000 for tobacco and cigarette related charges. SAPS was also following up and investigating a case involving the keeping of dogs in the vessel.

Centre for Sea Watch and Response had kept an eye on the vessels

A screen image of the tracked route of the 10 Chinese fishing vessels that went past the South African coast and one of which was captured following to violation of some of the country's territorial waters' management laws. — A SAMSA Centre for Sea Watch and Response tracking system screen image of the tracked route of the 10 Chinese fishing vessels that went past the South African coast and one of which was captured following to violation of some of the country’s territorial waters’ management laws.

Meanwhile, it has since dawned that the SAMSA Centre for Sea Watch and Response (CSWR) had actually tracked a number of the vessels as soon as they were within South Africa’s territorial waters on 07 May 2016 and according to its report, the Chinese fishing vessels had left China at the end of March 2016 destined for the Congo in West Africa.

The Centre said it had tracking AIS data for only six of vessels, indicating that carriage of AIS transponders for fishing vessels was a “flag State” requirement and that not all fishing vessels carried these devices.

A SAMSA Centre for Sea Watch and Rescue image showing the location of the rest of the Chinese fishing vessels along the Namibian coast earlier this week — A SAMSA Centre for Sea Watch and Response image showing the location of the rest of the Chinese fishing vessels along the Namibian coast earlier this week

This notwithstanding, the Centre said it had noted that the 10 vessels were detected by MRCC Mauritius and their National Coast Guard (NCG) aircraft was launched to interrogate (them). Their identities were established as Lu Huang Yuan Yu 185, 187, 197 and 199 and these were heading towards Congo.

Six others, the Lu Huang Yuan Yu 186, 188,189,195, 198, and Xu Huo 9618 were bound for Port Louis, and arrived on 28 April before departing on 01 May after bunkering at outer anchorage.

The Centre said: “The vessels entered SA waters on 07 May; passing through territorial waters off Richards Bay about 19h00 on 08 May, and Durban on 09 May; then Port Elizabeth on 10 May and rounded Cape Agulhas on 11 May, and off Cape Town about 14h00 on 12 May heading toward Saldanha Bay area. This is a distance of about 880 miles in about 91 hours which equates to an average speed of 9,6 knots.

A SAMSA Centre for Sea Watch and Rescue tracking system image showing the actual route taken by the Chinese vessels since leaving China about two months ago. — A SAMSA Centre for Sea Watch and Response tracking system image showing the actual route taken by the Chinese vessels since leaving China about two months ago.

According to the Centre, the track data of the six vessels indicate that they entered the SA coast near Richards Bay and stayed within the territorial zone all the way and passed Cape Town in keeping with their response to the Mauritian Authority of heading to the Congo.

The Centre said following the attempted roundup of the fishing vessels for inspection by the DAFF’s coast guard vessel, the FPV Victoria Mxenge, about 25 miles SW of Saldanha, the vessels dispersed and eventually continued heading northward towards Namibian waters.

SAMSA said that Namibian authorities had since been informed about the alleged incidents in South African waters.

The latest tracks show eight of the 10 vessels off Angola, outside of their EEZ.

End.

Fate of arrested Chinese vessel in Cape Town to be determined soon

Pretoria: 16 May 2016

The fate of the Chinese vessel, Lu Huang Yuan Yu 186, currently docked in Cape Town after being successfully chased and captured by South African authorities off the Eastern Cape coast at the weekend will soon be fully determined by the extent to which it violated both the country’s laws and international conventions.

The vessel is one of several – about nine – possibly from the same company believed to have entered and operated in South African waters illegally about a week ago.

On Monday (May 16) the South African Maritime Safety Authority (SAMSA) confirmed that it had begun investigations of the vessel relating to its conduct in the country’s Exclusive Economic Zone (EEZ).

Captains Karl Otto and Gustav Louw confirmed that SAMSA surveyors boarded the vessel on Monday afternoon and their findings would be shared as soon as they were available.

According to SAMSA, the investigation is looking precisely into the vessel’s seaworthiness inclusive of its condition, its operation certificates as well as those of the crew, the vessel’s manning conditions, as well as its general conduct in South African waters involving its radio availability and responsiveness to South African authorities.

A SAMSA team set out early Monday to investigate the vessel and to make a determination of its overall condition and conduct.

The SAMSA ship surveyors team’s findings will add to the Department of Agriculture, Forestry and Fisheries (DAFF) investigations and findings at the weekend shortly after the cornering and arrest of the vessel in Cape Town.

Shortly after its berthing at the Cape Town harbour on Saturday, according to DAFF, rummaging was conducted on the captured vessel involving the South African Police Services (SAPS), the South African Revenue Services (SARS) as well as the Department of Home Affairs.

“There was a total of nine crew members on board,” said DAFF’s spokesperson, Bomikazi Molapo, also confirming that no fish was found onboard the vessel.

She said: “The crew claimed to have been travelling to the Democratic Republic of Congo where they claim they were going to fish and claim to have the necessary permits to do so. We have also established that this fleet of nine vessels is related and belong to the same company.”

Due to these violations, DAFF issued a seizure notice that will involve the vessel, its gear and equipment, stores as well as cargo.

In terms of this, the vessel will not be allowed to leave the port of Cape Town or relocate to any other berthing space within the port, unless authorized to do so by DAFF.

According to DAFF, SARS had also fined the vessel R8 000 for tobacco and cigarette related charges. SAPS was also following up and investigating a case involving the keeping of dogs in the vessel.

Meanwhile, Ms Molapo confirmed that an alert had been issued to neighboring countries, Namibia and Mozambique to be on the look for the rest of the vessels that have since disappeared. “DAFF has notified and registered an intention to get all the nine vessels red flagged with regional fisheries management organizations,” she said.
End