CSK Tribute - Nacala

Repairs after Sinking and Salvage:

Vessel Modifications:

Grounding Damage:

•  Vessels running aground on our coastlines and subsequent repairs.

West Africa Offshore rigs and ships:

Scheduled Dry-docking Repairs:

S.A. Industry Growth Constraints:

•  Dry-dock availability only one large dock per major port - we lack flexibility for ship owners.

•  National Port Authority owns and operates docks. Ship Repair companies conduct repairs. Dock infrastructure in poor condition.

•  Dry-dock rentals rank amongst the highest in the world due to industry misalignment.

•  Dry-dock bookings operate on a first come first serve basis irrespective of project potential value.

Dry-dock Cost Comparison – Internationally:

•  NPA do not make money from docking and thus feel they subsidize ship repair industry. Incidentally the only privately owned dock in SA does operate profitably.

•  Ship repair have difficulty marketing expensive dock with poor infrastructure.

•  Government needs to consider the total revenue outcome for the South African Economy given that tax revenues from this industry supersedes dry-dock revenue.

•  International ship yards own and operate more than one dry-dock per shipyard – offering flexibility and dock availability.

•  Shipyards invest in cranes and equipment.

•  Recent survey of yards internationally with docks wider than 85m beam concluded 4 dry-docks per yard and new building yards had 7 docks per yard.

•  Our dry-docks are all below 45m beam.

•  Cape Town and Durban have 3 yards per Port sharing one dry-dock.

•  In SA = misaligned •  shipyards can not invest in facilities and cranes.

•  The NPA does not make a reasonable return as a passive service provider to the industry.

•  Solution = concession operating of docks to yards to allow the correct investment and operating model.

•  Generates foreign income

•  Massive sustainable job creator

•  Essential port service and national strategic benefit

•  Large generator of tax revenue

Cape Town Port Overview:

•  SA’s closest port to West African oil fields

•  Industry has traditionally serviced oil rigs, supply vessels and offshore related ships such as crane barges

•  Offshore vessels are too large for the Suez Canal and thus round the Cape

•  Over 10 500 people are employed in this industry in Cape Town alone

•  For over 20years we have formed various oil and gas committees, industry clusters such as Cape Ship Repair, tendered 3 times on ship lift facilities, explored upgrading A Berth for Oil and Gas.

•  Sadly we continue to lose repair projects to Walvis Bay and other ports and not one infrastructural realignment or investment can be listed as a component to improve our footprint in this time.

•  Robinson dry-dock is in the waterfront complex - unsuitable for 24 hour operations.

•  The synchrolift used to dock over 380 vessels per annum - is also in the waterfront area.

•  Cape Town does not have any repair quays equipped with adequate cranes for offshore and diamond mining vessels.

•  All dry docks nationally require infrastructure upgrades in terms of cranes and services.

Durban dry-dock

Cape Town dry-dock

Trends in Local Ship Repair vs World Ship Building:

Namibian Comparison:

•  Namibian Port Authorities – Namport invested in two floating docks and upgraded the ship lift.

•  Floating docks are privately operated.

•  Supply vessels now dock in Walvis Bay – CT used to dock 4 per month!!

•  Rigs are now also repaired in Walvis Bay

Industry Summary: •  Ship repair offered in all SA ports.

•  Industry has clusters – ready to engage.

•  The NPA unfairly blamed for the industry short comings, infrastructure conditions and dry dock bookings.

•  You can not however keep beating parties if the operating model is incorrect.

•  We are losing market share and opportunities.

•  Positively: NPA commissioned a study by Price Waterhouse Coopers to suggest an operating model and complete a condition survey of national port owned repair facilities.

•  This study is now complete and we all wait anxiously for the action to follow to resolve the misalignment.

•  Will this study amount to anything???????

•  SA has an obligation to provide essential repair services ports but we have opportunity to participate in a foreign income, labour intensive and sustainable business.

•  Need = serious engagement between the Transnet, NPA, Trade and Industry and Ship Repair to re-structure business.

•  No time left and decisions are required urgently to maximize opportunities.

•  This is exactly in line with national requirements to generate foreign income and grow employment.

•  Lets engage and build a better service and future together!

•  THANK YOU FOR YOUR INTEREST