Successfully reported this slideshow.

Oppurtunity for future expansion of ship repair in South African ports

3,368 views

Published on

Presented by: Dr. Brian Gowans and Keith MacHutchon at the 2009 Railways and Harbours Conference in Cape Town.

  • Be the first to comment

Oppurtunity for future expansion of ship repair in South African ports

  1. 1. Draft Opportunities for Future Expansion of Ship Repair Business in South African Ports Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Presented by Dr. B. Gowans and Mr. K.R. MacHutchon
  2. 2. Outline of Presentation Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  3. 3. <ul><li>Introduction </li></ul>Outline of Presentation Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  4. 4. <ul><li>Introduction </li></ul><ul><li>Background </li></ul><ul><li>Recent and On-going Developments, Industry Ratios and Percentages, </li></ul><ul><li>Typical Ship Repair Yard Selection Model and Developing Economy Status Opportunity </li></ul>Outline of Presentation Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  5. 5. <ul><li>Introduction </li></ul><ul><li>Background </li></ul><ul><li>Recent and On-going Developments, Industry Ratios and Percentages, </li></ul><ul><li>Typical Ship Repair Yard Selection Model and Developing Economy Status Opportunity </li></ul><ul><li>Current Split of Operations in South Africa </li></ul>Outline of Presentation Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  6. 6. <ul><li>Introduction </li></ul><ul><li>Background </li></ul><ul><li>Recent and On-going Developments, Industry Ratios and Percentages, </li></ul><ul><li>Typical Ship Repair Yard Selection Model and Developing Economy Status Opportunity </li></ul><ul><li>Current Split of Operations in South Africa </li></ul><ul><li>Physical size Constraints on Existing Ship Repair Facilities in South Africa </li></ul>Outline of Presentation Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  7. 7. <ul><li>Introduction </li></ul><ul><li>Background </li></ul><ul><li>Recent and On-going Developments, Industry Ratios and Percentages, </li></ul><ul><li>Typical Ship Repair Yard Selection Model and Developing Economy Status Opportunity </li></ul><ul><li>Current Split of Operations in South Africa </li></ul><ul><li>Physical size Constraints on Existing Ship Repair Facilities in South Africa </li></ul><ul><li>South African Graving Dock Capacities and Utilisations </li></ul>Outline of Presentation Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  8. 8. <ul><li>Introduction </li></ul><ul><li>Background </li></ul><ul><li>Recent and On-going Developments, Industry Ratios and Percentages, </li></ul><ul><li>Typical Ship Repair Yard Selection Model and Developing Economy Status Opportunity </li></ul><ul><li>Current Split of Operations in South Africa </li></ul><ul><li>Physical size Constraints on Existing Ship Repair Facilities in South Africa </li></ul><ul><li>South African Graving Dock Capacities and Utilisations </li></ul><ul><li>Survey of Global Shipbuilding and Ship Repair Facilities </li></ul><ul><ul><ul><li>USA, Europe, Middle East and Asia </li></ul></ul></ul>Outline of Presentation Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  9. 9. <ul><li>Introduction </li></ul><ul><li>Background </li></ul><ul><li>Recent and On-going Developments, Industry Ratios and Percentages, </li></ul><ul><li>Typical Ship Repair Yard Selection Model and Developing Economy Status Opportunity </li></ul><ul><li>Current Split of Operations in South Africa </li></ul><ul><li>Physical size Constraints on Existing Ship Repair Facilities in South Africa </li></ul><ul><li>South African Graving Dock Capacities and Utilisations </li></ul><ul><li>Survey of Global Shipbuilding and Ship Repair Facilities </li></ul><ul><ul><ul><li>USA, Europe, Middle east and Asia </li></ul></ul></ul><ul><li>Current South African Port Traffic Profiles </li></ul><ul><li>Dry Dock Utilisations, Ship Sizes and Traffic Volumes </li></ul>Outline of Presentation Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  10. 10. <ul><li>Introduction </li></ul><ul><li>Background </li></ul><ul><li>Recent and On-going Developments, Industry Ratios and Percentages, </li></ul><ul><li>Typical Ship Repair Yard Selection Model and Developing Economy Status Opportunity </li></ul><ul><li>Current Split of Operations in South Africa </li></ul><ul><li>Physical size Constraints on Existing Ship Repair Facilities in South Africa </li></ul><ul><li>South African Graving Dock Capacities and Utilisations </li></ul><ul><li>Survey of Global Shipbuilding and Ship Repair Facilities </li></ul><ul><ul><ul><li>USA, Europe, Middle east and Asia </li></ul></ul></ul><ul><li>Current South African Port Traffic Profiles </li></ul><ul><li>Dry Dock Utilisations, Ship Sizes and Traffic Volumes </li></ul><ul><li>Possible New Ship Repair Facilities in South Africa </li></ul>Outline of Presentation Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  11. 11. Introduction Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports Ship Repair in South Africa: Number of Ships undergoing ship repair in SA Ports Annually 1 780 Number of people Employed directly 4 250 8 % management and Technical 27 % skilled 56 % semi skilled or unskilled 9 % administration and support Indirect employment (x4) = circa 15 000 Annual Income of the Sector R 1.8 billion
  12. 12. Introduction (contd) Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports Existing facilities in South Africa Nil Ngqura Nil Saldanha Bay 13.7 7.9 6.0 45.0 20.7 15.0 360 161 61 120 000 17 000 1 800 Cape Town Sturrock Dock Robinson Dock Synchrolift 3.0 12.0 30 200 Mossel Bay Slipway 4.5 12.0 60 1 200 Port Elizabeth Slipway 10.0 24.0 200 30 000 East London Graving Dock 12.5 6.0 6.3 33.0 23.0 23.5 352 109 140 70 000 4 500 8 500 Durban Graving Dock Floating Dock EBH Floating Dock Nil Richards Bay Draft (m) Beam (m) Length (m) Capacity (Tons) Facility
  13. 13. Recent and On-going Developments in the International Ship Repair Industry Background Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  14. 14. Increased Ship Sizes to gain greater transport efficiency Recent and On-going Developments in the International Ship Repair Industry Background (contd) Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  15. 15. Increased Ship Sizes to gain greater transport efficiency Increased complexity of Modern Vessels , requiring: Increased regular attention and maintenance Increased level of skill from Service Providers Recent and On-going Developments in the International Ship Repair Industry Background (contd) Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  16. 16. Increased Ship Sizes to gain greater transport efficiency Increased complexity of Modern Vessels , requiring: Increased regular attention and maintenance Increased level of skill from Service Providers Requirement for Investments in Equipment and Processes to ensure: Higher levels of Safety, and High Environmental Standards Recent and On-going Developments in the International Ship Repair Industry Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports Background (contd)
  17. 17. Increased Ship Sizes to gain greater transport efficiency Increased complexity of Modern Vessels , requiring: Increased regular attention and maintenance Increased level of skill from Service Providers Requirement for Investments in Equipment and Processes to ensure: Higher levels of Safety, and High Environmental Standards Introduction of tougher International Quality Standards and Safety Regulations requiring: Guarantees for Steel Quality of Material and Workmanship Recent and On-going Developments in the International Ship Repair Industry Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports Background (contd)
  18. 18. Typical Ship Building Split of Cost Materials (60%) Labour (20%) Overheads (20%) Typical Industry Ratios and Percentages Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports Background (contd)
  19. 19. Typical Ship Building Split of Cost Materials (60%) Labour (20%) Overheads (20%) Typical Ship Repair Split of Cost Overheads (20%) Labour (60%) Materials (20%) Typical Industry Ratios and Percentages Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports Background (contd)
  20. 20. Underwater Work (5%) Typical Cost/Value Split of Work in Ship Repair Yards Dry Dock Work (30%) Alongside Quay Work (70%) Typical Ship Building Split of Cost Materials (60%) Labour (20%) Overheads (20%) Typical Ship Repair Split of Cost Overheads (20%) Labour (60%) Materials (20%) Typical Industry Ratios and Percentages Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports Background (contd)
  21. 21. Typical Ship Repair Yard Selection Model Quotation for the work Subcontractors costs Exchange Rate risks Internal Cost of Repair Ship Repair Contractor Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports Background (contd)
  22. 22. Typical Ship Repair Yard Selection Model Quotation for the work Subcontractors costs Exchange Rate risks Location of The Yard Deviation Time Duration of Repairs Effective Cost of Repair Ship Repair Contractor Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports Background (contd)
  23. 23. Typical Ship Repair Yard Selection Model Quotation for the work Subcontractors costs Exchange Rate risks Location of The Yard Deviation Time Duration of Repairs Quality of the Work Trade and Age Of the Vessel Effective Cost of Repair Acceptance of the Quotation Ship Owner/ Ship Yard Relationship Ship Repair Contractor Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports Background (contd)
  24. 24. Developed Economy Shipbuilding Business Developing Economy Ship Repair Business Type of Economy Ship Conversion Business Sensitivity to Location : Shipping Lanes and Ports of Origin and Final Destination Ship Building and Ship Repair Industry Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports Background (contd)
  25. 25. <ul><li>Current Split of Operations in South Africa </li></ul>Private Sector Land and Sea Areas Dry Docking Facilities and Operations Workshops and Resources Durban South African Ship Repair Industry Transnet National Ports Authority Durban East London Port Elizabeth Mossel bay Cape Town Durban East London Mossel Bay Durban East London Port Elizabeth Mossel bay Cape Town Durban East London Cape Town Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  26. 26. <ul><li>Possible Future Split of Operations in South Africa </li></ul>Private Sector Land and Sea Areas Dry Docking Facilities and Operations Workshops and Resources South African Ship Repair Industry Transnet National Ports Authority Durban East London Port Elizabeth Mossel Bay Cape Town Durban East London Mossel Bay Cape Town Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  27. 27. Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports Plot of Ship Beam and Dry Dock Width Dimensions
  28. 28. Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports SA Graving Dock Capacities and Sizes of Vessels Docked in Year 2007
  29. 29. Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports Durban Graving Dock East London Graving Dock CT: Sturrock Graving Dock CT: Robinson Graving Dock Frequencies of Occupation of SA Graving Docks in Year 2007 16 vessels max. 6 vessels max. 10 vessels max. 37 vessels max.
  30. 30. Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports Durban Graving Dock CT: Sturrock Graving Dock Actual and Preferred Frequencies of Occupation in Durban and Cape Town (Sturrock) Docks
  31. 31. <ul><li>Survey of Global Shipbuilding and Ship Repair Facilities: </li></ul><ul><li>Private Ship Building Yards (USA): Year 2003 </li></ul>Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  32. 32. <ul><li>Survey of Global Shipbuilding and Ship Repair Facilities: (contd) </li></ul><ul><li>Private Ship Repair Yards (USA): Year 2003 </li></ul>Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  33. 33. <ul><li>Survey of Global Shipbuilding and Ship Repair Facilities: (contd.) Ship Repair Yards: Europe, Middle East and far East </li></ul>Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  34. 34. <ul><li>Current South African Port Traffic Profiles </li></ul>Port Traffic Profile in terms of the Number of Vessel Dockings Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  35. 35. <ul><li>Current South African Port Traffic Profiles (contd). </li></ul><ul><li>Annual Number Port Dockings and Size of Vessel (DWT) </li></ul>Port Traffic Profile in terms of Vessel Dockings per Cargo Types Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  36. 36. <ul><li>Current South African Port Traffic Profiles </li></ul><ul><li>(Ship Sizes (DWT) and Port Dockings) </li></ul>Port Traffic Profile in terms of Average and Maximum Vessel Size (DWT) Maximum Vessel Size in Port shown in circles Average Vessel Size in Port (Year 2005/6 to 3007/8) Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  37. 37. Shipping Lanes Passing South Africa Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  38. 38. Empty Leg Shipping Lanes Passing South Africa Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  39. 39. Shipping Lanes Coming to, and Leaving, South Africa Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  40. 40. Major Countries for Ship Repair and Conversions Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  41. 41. Minor Countries for Ship Repair and Conversions [Either High Cost, Domestic Orientation or Lacking in Expertise] Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  42. 42. Major and Minor Countries for Ship Repair and Conversions Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  43. 43. Opportunities for Future Expansion of Ship Repair Business Opportunities for Future Expansion of Ship Repair Business Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  44. 44. Possible New and upgraded Ship Repair Dock faculties in South Africa Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports Durban H H East London Ngqura Port Elizabeth Cape Town Saldanha Bay Richards Bay Upgraded Ship Repair Facilities: Upgraded and New Ship Repair Facilities: For the fishing fleet Upgraded Ship Repair Facilities: New Ship Repair Facilities: 2 No. Graving Docks 1 No. Floating Dock New Ship Repair Facilities: 1 No. Graving Docks 2 No. Floating Dock New Ship Repair Facilities: 2 No. Graving Docks 1 No. Floating Dock
  45. 45. Advantages of Expansion of the SA Ship Repair Business : Larger facilities More space for lay-down Greater efficiency of operation More flexibility of operation Increased employment in low employment zones Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  46. 46. New facilities : Additional quay space for ship repair activities Floating Docks Simplified and shallower Graving Docks Roof Covers Semi automated dock block arrangements Simplified Dock Gates Faster water removal pumping systems and penstocks Faster moving cranes for light lifts Mechanical handling for dock work and painting Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  47. 47. Funding : A new Graving Dock will cost in the order of a R 1 billion Requires review of the present industry Requires investment from International Ship repair Groups Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  48. 48. Potential : Increase in direct work force by up to 5 times = approximately 21 250 Increase in indirect work force by up to 5 times = approximately 45 000 In areas where employment is needed Can result in up-skilling of workforce Increase in income for the sector = approximately R 8.4 billion Increase in foreign investment Increase in foreign income Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa Opportunities for Future Expansion of Ship Repair Business in South African Ports
  49. 49. Draft Railways and Harbours Conference and Exhibition: Ports 2009 Cape Town, South Africa

×