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Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

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Page 1: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

Click to edit Master title style

Heading heading heading DateStrategic Customer Forum

Operation PhakisaEastern Cape Region: 04 November

Page 2: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern 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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Page 3: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

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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Page 4: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

TNPA’s Responsibility as Landlord

Operation Phakisa

Response to Phakisa

- Existing Facilities

- Private Sector Projects

Closing Remarks

Contents

4

Page 5: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

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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Page 6: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

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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Page 7: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

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

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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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A

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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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Page 9: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern 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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Page 10: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

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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Page 11: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

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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Page 12: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

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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Page 13: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

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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Page 14: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern 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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Page 15: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

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;

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Operation Phakisa Projects (Initiatives 2,7,8)

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Current Status

Completed

In Process

Page 17: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

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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Page 18: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

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

Page 19: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

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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Page 20: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

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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Page 21: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

Initiatives 2,7,8 :

Artist impressions of new facilities at

Saldanha Bay and Richards Bay

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Page 22: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

Saldanha : Rig Repair Berth 205 (Artist Impression)

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Page 23: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

Saldanha : Mossgas Jetty (Artist Impression)

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Page 24: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

Saldanha : Oil and Gas Supply Base (Artist Impression)

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Page 25: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

Richards Bay : Ship Repair (Artist Impression)

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Page 26: Click to edit Master title style Heading heading heading Date Strategic Customer Forum Operation Phakisa Eastern Cape Region: 04 November

• 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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