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
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.
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
Introducing the South African Based Shipyards The Original Equipment Manufacturers
Damen Shipyards Cape Town -Based in Cape Town -Level 3 BBBEE Contributor
Vessels Built at Damen Patrol Vessels for DEAT Research Vessel for DEAT
Vessels Built at Damen Tugs for the SA Navy Ferry for Robben Island
DORMAC -Based in Durban
Vessels Built at Dormac Bunker Barge
Elgin Brown and Hamer Based in Durban
Nautic Africa Based in CapeTown
Vessels Built by Nautic Africa Patrol Vessels
SA Shipyards Based in Durban
Vessels Built at SAS
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: 6 000 tonnes light, 12 500 tonnes full load Cargo capacity: 5 500 tonnes fuel, 750 tons ammunition & dry stores Speed: 20 + knots Complement: 96 Guns: 4 Oerlikon 20mm Helicopters: 2 Puma / 2 Super Frelon
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
VeeCraft Based in Cape Town
Vessels Built by Veecraft
Suppliers and Sub- Contractors
Naval Architects
Propulsion Suppliers
Electrical Suppliers
Other Suppliers Fire fighting equipment Navigation Suites Aircon and refrigeration Control Sets Shop Fitting
Benefits to South Africa NGP, Job Creation, Localisation, Industrialisation
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
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 32 000 to 40 000 People
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
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
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.
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)
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
The End Game
The End Game
The End Game
The End Game
The End Game