Operation Phakisa: Unlocking the Economic Potential of South Africa s Oceans

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1 Overview of the South African Shipbuilding Industry By Prasheen Maharaj CEO Southern African Shipyards Operation Phakisa: Unlocking the Economic Potential of South Africa s Oceans

2 We Are Shipbuilders Shipbuilding is very much part of South Africa s proud maritime tradition two oceans, an immensely long coastline, skilled and dedicated workers and businesses, and a long-proven ability to design, build and operate excellent vessels of many types. So make no mistake: Shipbuilding is part of our heritage. It is not and should not be viewed as a dying/dead industry. We can and will compete successfully with the best in the world in niches and areas we choose.

3 Objective of the Presentation 1. To highlight the Shipyards that are currently operating in South Africa. 2. To showcase the vessels that have been built in SA. 3. To highlight the shipbuilding suppliers, manufacturers and sub-contractors that are based in South Africa. 4. To emphasize the South African Shipbuilding Industry s ability to fulfill SA s & Africa s Shipbuilding Requirements

4 Introducing the South African Based Shipyards The Original Equipment Manufacturers

5 Damen Shipyards Cape Town -Based in Cape Town -Level 3 BBBEE Contributor

6 Vessels Built at Damen Patrol Vessels for DEAT Research Vessel for DEAT

7 Vessels Built at Damen Tugs for the SA Navy Ferry for Robben Island

8 DORMAC -Based in Durban

9 Vessels Built at Dormac Bunker Barge

10 Elgin Brown and Hamer Based in Durban

11 Nautic Africa Based in CapeTown

12 Vessels Built by Nautic Africa Patrol Vessels

13 SA Shipyards Based in Durban

14 Vessels Built at SAS

15 Naval Contracts Completed The replenishment ship the S.A.S. Drakensberg was built and launched at the shipyard. This is the largest ship built in South Africa. Length:147 metres Beam: 19,5 metres Depth: 7,9 metres Displacement: tonnes light, tonnes full load Cargo capacity: tonnes fuel, 750 tons ammunition & dry stores Speed: 20 + knots Complement: 96 Guns: 4 Oerlikon 20mm Helicopters: 2 Puma / 2 Super Frelon

16 Naval Contracts Completed A total of six strikecraft were completely built in the shipyard. Strikecraft Length: Beam: Depth: 62,2 metres 7,8 metres 2,4 metres Displacement: 430 tonnes full load Speed: 32 knots Complement: 47 Missiles: radar guidance Guns: 6 Gabriel, active 2 OTO Malara 76 mm 2 Oerlikon, 20 mm 4 MG s 12,7 mm Counter measures: Decoys: 4 launchers Chaff

17 VeeCraft Based in Cape Town

18 Vessels Built by Veecraft

19 Suppliers and Sub- Contractors

20 Naval Architects

21 Propulsion Suppliers

22 Electrical Suppliers

23 Other Suppliers Fire fighting equipment Navigation Suites Aircon and refrigeration Control Sets Shop Fitting

24 Benefits to South Africa NGP, Job Creation, Localisation, Industrialisation

25 Economic Benefits to SA The beneficial effects of the industry are: Direct and indirect employment Skills enhancement Technology transfer Technological Stimulation Industrial Stimulation Black Empowerment Export earnings Import replacement. Contribution to the National Treasury

26 Employment In a report written by A.A. van Wyk, M.J. Havenga and M. Bhavan of the IDC in 1995, it was stated The backward and forward linkages (of the shipbuilding industry) are similar to that of the heavy engineering industry, with an estimated employment multiplier factor of around 8, as calculated by Prof. Hupkes of UNISA. As the industry stabilises, and local technological inputs increase, this multiplier is expected to increase to about 10. The Current Shipbuilding programme at SAS has led to direct employment at about 500. This means that the employment effect of the yard will extend to some 4000 to 5000 people. Given that, in KwaZulu Natal, the average wage earner supports 8 people, the shipyard will provide sustenance for between to People

27 Employment The following categories of employment will be provided: - Welders - Boilermakers - Crane drivers - Riggers - Administration staff - Project management - Planning - Draughtsmen - Marine Engineers - Accountants - Information Technologists - Fitters - Turners - Supervisors - Painters Sub contractors will provide employment for: - Cleaning staff - Security Guards - Electricians - Electronic engineers - Carpenters - Joiners - Mechanical Engineers - Plumbers And many others

28 Technological Stimulation Equipment currently being imported, which could be manufactured locally, includes: Stern frame castings Bulbous flats (Holland profile steel) Main engines Pumps Winches Cranes Specialised ropes Propellers Tail shafts Hatch covers Cranes Electronic radar equipment Sewage processing equipment Fresh water generators Navigation equipment Watertight doors and manholes Communication equipment Partitioning Wet Units Generators Gearboxes

29 Building Ships in Africa for Africa 1. We understand what Africa needs: - Robust - Reliable - Simple to Operate - Simple to Maintain 2. African Maritime Charter, Bi-lateral Agreements.

30 Top Industry Issues Competing in the International Market against subsidised countries Aging machinery and equipment hasn t kept up to speed with technological advancement Lack of Skilled Professionals: Naval Architects, Project Managers, Project & Production Planners, Estimators, Marine Engineers Government Policy not consistently applied by Government Agencies High Cost of doing business in the Industry: Shipyard Rentals, Electricity, Rates, DFI Interest Rates, etc too high as compared to international shipyards Lack of Innovation (Product, Process and Organisational)

31 The Game Changers Possible Solutions Reduce the cost of doing business Fleet Acquisition Strategy Common of the shelf technology Industry Collaboration Leads to export Competiveness Less talk, more action

32 The End Game

33 The End Game

34 The End Game

35 The End Game

36 The End Game

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