A presentation by Laura Peinke, lead business development, SBIDZ, South Africa. Delivered during African Ports Evolution 2015 in Durban, South Africa. More like this on www.transportworldafrica.co.za

1. AN OIL & GAS SERVICES COMPLEX IN THE
PORT OF SALDANHA BAY
Africa Ports Evolution
3 November 2015
THIS DOCUMENT IS THE COPYRIGHT OF THE SALDANHA BAY IDZ LICENCING SOC LTD
Images sourced courtesy of DCD Marine & Dormac
Laura Peinke
Executive: Business Development

2. 1. The Saldanha Bay Industrial Development Zone
2. Value Proposition
3. Joint Vision for the Port of Saldanha Bay
3. SBIDZ Infrastructure Programme
4. Our Offering to Investors
Content

3. 1. THE SALDANHA
BAY INDUSTRIAL
DEVELOPMENT
ZONE
Vision & Value Proposition
Objectives of the SBIDZ
The SBIDZ Designation

4. The Saldanha Bay Industrial Development Zone has been established as
South Africa’s first sector-specific zone in support of the Upstream Oil & Gas
Services and Marine Repair & Engineering Sector.
Vision of the Saldanha Bay IDZ
To utilise the existing Industrial Development Zone enabling legislation to act as a catalyst to
create and sustain economic development and facilitate job creation by way of industrial
investment and efficient development in the Saldanha Bay Region, through the establishment of
an Upstream Oil & Gas Services Complex
Value Proposition
The SBIDZ is a competitive and highly efficient Cluster that is a leading, investor-responsive
location for Upstream Oil & Gas and Marine Repair & Fabrication activities servicing the African
continent.
4
Vision and Value Proposition

5. The objectives of the SBIDZ shall be to create jobs and sustainable economic
development by, including but not limited to:
1. promoting, managing and marketing the Saldanha Bay Industrial Development
Zone;
2. providing internal infrastructure to support investors in the Saldanha Bay
Industrial Development Zone area;
3. facilitating the ease of doing business in the Saldanha Bay Industrial
Development Zone area; and
4. acquiring and leasing land.
5
Objectives of the SBIDZ

6. • Designated by the Minister of Trade & Industry on 31
October 2013
• Total land area of ~330ha designated across IDC- &
TNPA-owned land
• IDC-owned land ~164ha. 25 year Lease agreement,
with option of a 25-year renewal. Initial 10 years
being a phased-in rental model.
• TNPA-owned land ~166ha. Negotiations underway,
and “to be jointly planned and implemented for the
mutual benefit of all concerned parties as well as to
accelerate industrial development and trade
facilitation in the region”.
Location as per General Notice 1081 of 2013 of
Government Gazette 36988, 31 October 2013
The SBIDZ Designation

7. 7Context Map – Port of Saldanha Bay, West Coast, South Africa
SITE A
SITE B
Site C

8. 2. VALUE
PROPOSITION
Investment Promotion
Target Areas
Factors Driving Private
Sector Interest

9. A Port-linked
Industrial
Cluster
Logistics
Marine/Subsea
Engineering &
Fabrication
Exploration
& Production
Repairs &
Maintenance
Ancillary
Services
These reflect the sub-sectors which the SBIDZ is actively pursuing & where investor interests lie.
Investment Promotion Target Areas

10. Support Services
Catering/ Facilities
Management
Sea/air transport
Warehouse/logistics
Communications
Recruitment
Training
Health, safety and
environmental
services
Medical services
Banking/finance
Legal
Insurance
Accountancy
Energy Consultancies
Marine & SubseaFacilitiesWellsReservoirs
Operators (Tier 1)
All types of exploration, development and production companies; integrated majors, large and small independents,
energy utility companies, non-operating companies, exploration companies
Reservoir engineering/
management
consultancies
Seismic data acquisition
& processing
contractors
Wells services
contractors
Drilling contractors
Well engineering
consultancies
Cement contractors
Engineering, operation,
maintenance and
decommissioning
contractors
Engineering
consultancies
Structure and topsides
design and fabrication
Marine/subsea
contractors
Heavy lift contractors
Pipe lay contractors
Floating production
storage units
Geoscience
consultancies
Data interpretation
consultancies
Seismic
instrumentation
Data storage
IT Hardware/software
Drilling & well
equipment design and
manufacture
Drilling tubalars
Laboratory services
Machinery/plant design
and manufacture
Engineering support
contractors
Specialist engineering
services
Inspection services
Specialist steels and
tubulars
Subsea manifold/riser
design and
manufacture
Marine/subsea
equipment
Subsea inspection
services
Tier2Maincontractorsand
consultancies
Tier3Productsandservicessuppliers,
componentssubcontractorsandsub-
suppliers
Source: Adapted from UK Oil and Gas 2012

11. 11
FOCUS
• Saldanha Bay IDZ is the only sector-specific IDZ in South Africa, allowing it the ability to focus its resources to
understand the industry, its challenges and develop solutions to remove barriers & address issues while
simultaneously having a positive impact on regional economic development and job creation.
EASE OF DOING BUSINESS & CCA
• SEZ Legislation allows for the SBIDZ to develop and implement an Ease of Doing Business model for Investors
that includes relevant public & private sector role players, including the development of a Customs Control
Area (CCA) or Freeport.
• Custom Control Area (CCA) means no VAT or duties on goods landed in the zone, with a focus on operational
handling efficiencies and turnaround time.
LOCATION , SIZE & SPACE
• Relative proximity to the West and East African markets.
• Able to offer a contiguous development across back-of-port land, Transnet land and the terminals means
seamless transfer and movement of goods in the Complex.
• Relatively greenfield and largest & deepest port in Sub-Saharan Africa.
Value Proposition (1)

12. 12
LAND TENURE
• IDC: 25 year lease agreement between SBIDZ LICO& IDC, with option of a 25-year renewal.
Initial 10 years being a phased-in rental model.
• TNPA: In the process of negotiation.
COST OF DOING BUSINESS
• Leasing Rates: Dependant on IDC & TNPA Head Lease Agreements.
• Services: Dependant on Service Level Agreements between SBIIDC LICO & SBM/WCDM.
• Other: Uncertain at this time on any implications of EASE OF DOING BUSINESS model.
EXISTING ECONOMIC BASE
• SA has the supporting (un-developed) industry and a track record of quality repair work done
by local companies.
Value Proposition (2)

13. 13
PARTNERSHIPS & PROGRAMMES WITH LOCAL COMMUNITY
• IDZ Business Forum addresses concerns of access to locally-based companies AND
development of these to meet international standards in both direct and indirect services
offered.
• Community Skills & Training Committee (CSTC) addresses concerns of access to suitably skilled
workforce in time.
LEGISLATIVE ENVIRONMENT
• SEZ legislation enables us to offer a CCA (a freeport) to the market - duty-free import tax on
goods brought, produced or manufactured and/or stored within a CCA.
• Taxation Laws Amendment Bill (as of 1 January 2014) offers a reduced corporate tax rate of
15% (conditions apply).
• Others: Capital depreciation on assets & Employment training incentive.
Value Proposition (3)

14. 3. JOINT VISION
FOR THE PORT OF
SALDANHA BAY
Shared Vision between TNPA &
SBIDZ
Infrastructure Projects
Port of Saldanha Bay – Current &
Future; Berth 205
Joint Outcome

15. Develop an Oil & Gas and Marine Repair Industry, within and adjacent to
the Port of Saldanha, and in so doing, offer a comprehensive value
proposition to the Offshore Oil & Gas Industry with a view to cater for
the seamless delivery of services to the Industry.
• Establish an Oil & Gas Services Complex within and adjacent to the Port of Saldanha Bay;
• Ensure that Complex will offer a full-house service to the offshore Oil and Gas industry;
• Use the enabling legislation for the creation of a single contiguous Customs Controlled Area, thereby
providing a ‘free-port’ equivalent; and
• Resolve some key challenges and constraints facing the offshore Oil and Gas industry in Saldanha Bay
through joint planning, marketing, and coordination of work.
TNPA-SBIDZ LICO MOU, 12 September 2014
Shared Vision Between TNPA and SBIDZ

16. 16
Source: Operation Phakisa MTM Lab Final Report Aug 2014
Port of Saldanha Bay - Current

17. 17
Port of Saldanha Bay - Future
Source: Operation Phakisa MTM Lab Final Report Aug 2014
OSB
Berth 205
Jetty at
Mossgas
LPG and
LNG
Import
Facilities

18. 18
TNPA Developments…
Source: TNPA Media Release 22 July 2015

19. 3. SBIDZ
INFRASTRUCTURE
PROGRAMME
SBIDZ Infrastructure
Programme
Schematic Layout
Concept Designs

20. 20
Future projects
• Design and Construction of a new cell at a
local Reservoir
• Design and construction of internal services
at the Portland
• Design and construction of the access
complex
• Construction of the link road bridge
• Construction of the CCA (Customs Control
Area) Fence line
• Upgrading of Duferco substation – if
necessary as study is still being done.
• Construction of Solid Waste Management
facility
Infrastructure that will unlock
the zone
Current & Completed projects
• Upgrade of the Saldanha Waste Water
Treatment Works
• Construction of site camp buildings –
Targeted Procurement
• Installation of Civil services in SALDOC Land
and Portland
• Design of the link road bridge
• Design and study of Solid Waste
Management Facility
• Environmental Impact Studies
Infrastructure that will unlock
the zone
Through dti SEZ Fund Infrastructure Capex allocation:
The SBIDZ Infrastructure Programme

21. 21
Schematic Layout
Site A: Project-based Leasing Facility
Site B: Storage, Fabrication & Offices
Site C: Storage, Fabrication, Offices, R&D & Technology Facilities
Site A
Site B
Site C
Source: Saldanha Bay IDZ Lico

22. 22
Source: Saldanha Bay IDZ Licencing SOC Ltd
Concept Design (1)

23. 23
Source: Saldanha Bay IDZ Lico
Concept Design (2)
Source: Saldanha Bay IDZ Licencing SOC Ltd

24. Developments…
Source: Saldanha Bay IDZ Licencing SOC Ltd

25. FOR MORE INFORMATION:
Laura Peinke | Executive: Business Development | laura@sbidz.co.za
Kaashifah Beukes | Executive: Stakeholder Relations | kaashifah@sbidz.co.za
Hannes Marais | Executive: Infrastructure | hannes@sbidz.co.za
Cape Town Office: +27 87 095 0261 | Saldanha Bay Office: +27 22 714 0206
Images sourced courtesy of DCD Marine & Dormac