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Heading heading heading DateStrategic Customer Forum
Operation PhakisaEastern Cape Region: 04 November
TNPA’s Responsibility as Landlord
Operation Phakisa
Response to Phakisa
- Existing Facilities
- Private Sector Projects
Closing Remarks
Contents
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Core functions (National Ports Act Section 11)O
pti
mally
serv
e t
he e
con
om
y
Master planner
Landlord
Marketer & administrator
Regulator and Controller
Coordinator with other state agencies
Change agent
Promote the use, improvement and development of ports, and control land use within the ports, having the power to lease port land under conditions it determines
Plan, improve, develop and maintain port infrastructure
Make and apply rules to control navigation within port limits and approaches, loading, unloading and storage of cargo, development of ports and off-shore cargo handling facilities, ensure protection of the environment within port limits, enhancement of safety and security within port limits
Ensure that adequate, affordable, equitable and efficient port services and facilities are provided for port users
Ensure non-discriminatory, fair, transparent access to port services and facilities; advancement of previously disadvantaged people; promotion of representivity and participation in terminal operations; enhanced transparency in port management
Advise on all matters relating to the port sector, and liaise with all stakeholders
Controller of ports services & facilities
Ensure that port services and facilities are provided, and may enter into agreements or licence other parties to provide these
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TNPA’s Responsibility as Landlord
Operation Phakisa
Response to Phakisa
- Existing Facilities
- Private Sector Projects
Closing Remarks
Contents
4
Exploring the potential of the ocean economy through Marine Transport and Manufacturing (MTM)
Government policy focused on GDP and jobs growth to resolve inequality, unemployment and poverty…
…Cabinet requested that Operation Phakisa evaluate potential of the Oceans Economy
▪ National Development Plan: aims to eliminate poverty and reduce inequality by 2030 by, amongst other things, growing an inclusive economy
▪ New Growth Path: provides the framework for economic policy and the driver of South Africa’s jobs strategy
▪ Industrial Policy Action Plan: specific plans to grow the economy and create jobs through industrial policy
▪ Four labs determined by Cabinet as priorities for Operation Phakisa– Marine Transport and Manufacturing– Oil & Gas Exploration– Aquaculture– Marine Protection and Governance
▪ Our lab focused on accelerating the growth of the the Marine Transport and Manufacturing sector:– Marine transport: cargo handling,
national registry– Marine manufacturing: rig & ship repair,
boat building, offshore O&G services
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Operation Phakisa : GDP contribution and job creation in Marine Transport and Manufacturing (MTM) Sector
Initial lab vision Target for interventions
GDP Contribution
Job Creation
Baseline (2010)
Accelerate the GDP contribution of the sector
▪ Increase the contribution to GDP by R14-23bn by 2019
▪ ~R15bn
Increase total employment
▪ Increase the number of total jobs created by 40,000-50,000 jobs by 2019
▪ ~15,000 jobs
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The Lab recommended the following initiatives for Marine Transport and Manufacturing
Infrastructure and operations Skills and capacity building Market growth
▪ Create supportive funding and revenue model
▪ Establish purpose-built oil and gas port infrastructure by appointing Facility Operators – Saldanha Bay
▪ Align on Implementation of government policy
▪ Prioritise Transnet and TNPA funding allocation towards marine manufacturing
▪ Maintain and refurbish existing facilities
▪ Unlock investment in new and existing port facilities
▪ Implement Strategic Prioritised Project – Richards Bay
▪ Implement Strategic Prioritised Projects – East London
▪ Train 2,550 TVET College graduates on an 18-month Workplace-based Experiential Learner Programme in scarce and critical trades over the 5 year period
▪ Create dedicated Occupational Teams for MTM Sector (professional, trades, operators and seafarers)
▪ Establish trade RPL, CBMT or Centres of Specialisation in Saldanha Bay and Richards Bay
▪ Train 18,172 learners as artisans, semi-skilled workers and professionals over the next 5 years
▪ Increase usage of ESSA system and targeted career awareness services as a high value recruitment tool for MTM
▪ Increase capacity to develop skills for ~1,200 ratings and ~720 officers per year
▪ Create and implement a public procurement and localisation programme
▪ Develop a strategic marketing campaign and value proposition for target markets
▪ Propose inclusion of preferential procurement clause in the African Maritime Charter
▪ Support local registry of vessels through incentives and legislation of using SA-flagged ships for cargo and coastal operations (based on United Nations Conference on Trade and Development and African Maritime Charter guidelines)
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A B C
i. TNPA – Transnet National Ports Authorityii.ESSA – Employment Services of South Africaiii.TVET – Technical and Vocational Education and Training
iv. RPL – Recognition of Prior Learningv. CBMT – Competency-based Modular Training7
TNPA’s immediate focus is on addressing infrastructure constraints
These initiatives require capital investment over the next 5 years.2 5
Immediate Impact on TNPAInfrastructure and operations
▪ Create supportive funding and revenue model
▪ Establish purpose-built oil and gas port infrastructure by appointing Facility Operators – Saldanha Bay
▪ Align on Implementation of government policy
▪ Prioritise Transnet and TNPA funding allocation towards marine manufacturing
▪ Maintain and refurbish existing facilities
▪ Unlock investment in new and existing port facilities
▪ Implement Strategic Prioritised Project – Richards Bay
▪ Implement Strategic Prioritised Projects – East London
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Initiative Details
Initiative 2 Acceleration of identified ship/rig Repair and Supply Bases investments at the port of Saldanha
Initiative 5 Acceleration of the refurbishments of existing ship repair facilities under the control of TNPA
Initiative 7 Dredging at the port of Richards Bay to accommodate the introduction of a floating dock
Initiative 8 Refurbishment of the East London slip way to accommodate boat building
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TNPA’s Responsibility as Landlord
Operation Phakisa
Response to Phakisa
- Existing Facilities
- Private Sector Projects
Closing Remarks
Contents
9
Operation Phakisa Projects (Initiative 5)
Investment in existing Ship Repair Facilities Estimated Cost
Estimated investment in existing facilities : Next 5 years R 2Bn
Cape Town, Durban, East London, Port Elizabeth, Saldanha Bay R 320m
• Projects have been identified across the ports to commence in 2015/16;
• The planned investments will result in the refurbishment of the existing repair facilities, including cranes and other equipment utilised at these facilities;
• The status of the projects are set out on the next slides;
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Maintenance and Refurbishment of existing facilities : Durban
1.50 5.00 3.50
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 ETC
Replacement of South side crane rail at Dry Dock
Erect perimeter wall on north side of Drydock
Repair of inner and outer caisson of Dry Dock
Execution: Dockyard Lighting and Low Voltage Electrical Distribution Upgrade
Welding Equipment Set for Shop 24
Drydock Jib Cranes
Drydock 6 Tons Forklift
Drydock Compressors
Upgrade of Floating Dock
Feasibility: Upgrade of Dockyard Infrastructure (E&M)
Repair Concrete works in the Dock
Execution: Upgrade of Dockyard Infrastructure (E&M)
4.78 5.00 9.00
5.00 95.00 20.00
5.00 16.60
1.57
1.23
7.50
1.00 5.00 4.00
10.00 50.00 70.00 40.00
10.00
DURBAN
Project
FEL 3: Project to be sanctioned in November 2015
Comments
Completed
FEL 4: To be completed in November 2015
Completed
Project Awarded
FEL3: Project to commence in 2016/17. Feasibility completed
Project awarded
FER: Finalizing business case
FEL3: Completed. FEL 4 to commence in 2016/17
FEL3: Completed. Work breakdown structure finalized. FEL 4 to commence in 2016/17
FEL4: Project Sanctioned. Tender phase.
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Maintenance and Refurbishment of existing facilities : Cape Town and Mossel Bay
2.00 33.00 35.00 35.00 35.00
•
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 PM ETC
Refurbishment of Sturrock Drydock
Refurbishment of Robinson Drydock
Refurbishment of Synchrolift
Replacement of water circulating pumps at Sturrock dry dock
Replacement of 10 cranes for Ship repair
Widening and lengthening of Repair quay
Refurbishment of Cradle & Side Slipway
Reconstruct lead-in jetty to slipway
Slipway upgrade
1.70 3.90 7.63 12.00 15.63 10.00
10.00 50.00 240.00 350.00 100.00
25.00 50.00 195.00
3.00
5.00 10.00
CAPE TOWN
Project
1.00 10.00 20.00 19.00
1.50 1.20
MOSSEL BAY
12.00
FEL 3: To be awarded in November 2015
Comments
FEL 3: To be awarded in November 2015
FEL 4: in execution
To be awarded in August 2015
FEL 3: Completed. To be awarded in November 2015
FER : Project deferred
Projects only commencing in 2016/17
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Maintenance and Refurbishment of existing facilities : East London, Port Elizabeth and Saldanha Bay
14/15 15/16 16/17 17/18 18/19 19/20 20/21 21/22 22/23 ETC
Refurbishment of Graving Dock + Refurbish Pumps
Refurbishment of Slipway Area
Replacement Lead-in Jetties slipway
40 ton Slipway Refurbishment (Feasibility & Execution) New 100t hoist
Modifications of 1200 ton slipway cradle
Refurbishment of Rock Quay (GM Quay area) Feasibility &
3.00
EAST LONDON
Project
5.16 54.47
SALDANHA
4.20 15.00 41.20 42.98 42.49
PORT ELIZABETH
10.73 51.50 81.93
19.05 58.14
10.00 131.00 52.06
Comments
PHASE1 (Switchgear) : ExecutionPHASE2 (Refurbish & Upgrade) : Award November 2015
Execute as private sector investment
Execution: to be completed in 2017
Execution: to be completed in 2017
Execution: to be completed in 2016
Execution: to be completed in 2015/16
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TNPA’s Responsibility as Landlord
Operation Phakisa
Response to Phakisa
- Existing Facilities
- Private Sector Projects
Closing Remarks
Contents
14
Operation Phakisa Projects (Initiatives 2,7,8)
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• The process to provide new facilities consists of the following steps :
• Transnet appointed Ernst & Young as Transaction Advisors to assist with implementing Initiatives 2,7,8;
Operation Phakisa Projects (Initiatives 2,7,8)
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Current Status
Completed
In Process
Operation Phakisa Projects (Initiatives 2,7,8) : Overall Scope
Project Objective Estimated Co-funded
investment required
Estimated Jobs
created
Estimated GDP Contribution
Saldanha Bay Oil and gas repair and supply base facilities
Establishment of port facilities to service the
Offshore Oil and gas industry within the Port of
Saldanha
R13.2bn 15 000 18bn
Richards Bay Ship repair facilities
Development of a cost effective ship repair
facilities within the Port of Richards Bay
R900m TBC TBC
East London boat building facilities
Development of the required infrastructure to
be a catalyst for the establishment of boat
building in the Port of East London
R515m TBC TBC
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Project Advisor Project Analysis
Completed
Business Case Development and Approval
Procurement of Preferred
Bidder Completed
Financial close and
appointment of Bidder
Required Operationa
l Date
Saldanha Bay Oil and gasrepair and supply base facilities Sept 2015 October 2015 Dec 2016 Sept 2017 2019
Richards Bay Ship repair facilities
Nov 2015 Nov 2015 June 2016 Sept 2016 2019
East London boat building facilities Jan 2016 Jan 2016 Nov 2016 Jan 2017 2019
Operation Phakisa Projects (Initiatives 2,7,8) : Execution Phases
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The Analysis and Business Case phases are in execution phase and on track to meet the indicated timelines
Local Stakeholder engagement completed
Planned Engagements Place DatesSAGOA Cape Town 3 June 2015PetroSA Cape Town 3 June 2015Dormac Cape Town 3 June 2015DCD Marine Cape town 4 June 2015Nautic Africa Cape Town 4 June 2015
DOT, DTi and DPE Johannesburg 11 June 2015
Transaction Advisor Introduction TNPA EXCO 22 June 2015
DAMEN Durban 22 June 2015
SA Shipyards Durban 23 June 2015
Elgin Brown Durban 23 June 2015
SAMSA Durban 23 June 2015
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Stakeholder engagement : International
Planned Engagements Place Dates
Offshore Technology Conference Houston 4 – 7 May 2015
Offshore Europe Aberdeen 8 – 11 September 2015
International market playersLondon , China,
Singapore, Korea, Netherlands, America
Subsequent to Business case Formulation
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Initiatives 2,7,8 :
Artist impressions of new facilities at
Saldanha Bay and Richards Bay
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Saldanha : Rig Repair Berth 205 (Artist Impression)
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Saldanha : Mossgas Jetty (Artist Impression)
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Saldanha : Oil and Gas Supply Base (Artist Impression)
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Richards Bay : Ship Repair (Artist Impression)
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• Phakisa is happening;
• Country growth and expansion of the economy is dependent on creating port capacity across the Port System; • Oceans economy as a “new” driver for economic growth and job creation;
• Oil and Gas repairs/refurbishment : Significant potential to create competitive advantage for South Africa;
• Alignment with Saldanha IDZ and SAOGA;
• New Port Facilities for Storage and Repairs :• Investment opportunities for private sector;• Supplier Development opportunities;
• TNPA is fulfilling its strategic role as an Infrastructure Provider and developing an integrated port system to grow the economy;
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Closing Remarks
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