This document discusses issues with South Africa's ship repair industry, including a lack of dry dock infrastructure and availability, high rental costs, and loss of business to other countries. It notes that South Africa only has one large dry dock per major port, while other countries have multiple docks per shipyard. This limits flexibility and capacity. It argues that concessions allowing shipyards to operate dry docks could boost investment and the industry's competitiveness. Without changes to address these problems, South Africa risks losing more ship repair projects and business to countries like Namibia.

10. CSK Tribute - Nacala

27. Repairs after Sinking and
Salvage:

52. Vessel
Modifications:

64. Grounding Damage:
Vessels running aground on our coastlines and
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subsequent repairs.

82. West Africa Offshore
rigs and ships:

92. Scheduled
Dry-docking Repairs:

111. S.A. Industry Growth
Constraints:
Dry-dock availability only one large dock per major
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port - we lack flexibility for ship owners.
National Port Authority owns and operates docks. Ship
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Repair companies conduct repairs. Dock infrastructure
in poor condition.
Dry-dock rentals rank amongst the highest in the
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world due to industry misalignment.
Dry-dock bookings operate on a first come first serve
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basis irrespective of project potential value.

112. Dry-dock Cost Comparison
– Internationally:

113. NPA do not make money from docking and thus
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feel they subsidize ship repair industry.
Incidentally the only privately owned dock in SA
does operate profitably.
Ship repair have difficulty marketing expensive
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dock with poor infrastructure.
Government needs to consider the total revenue
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outcome for the South African Economy given that
tax revenues from this industry supersedes dry-
dock revenue.

120. International ship yards own and operate more
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than one dry-dock per shipyard – offering
flexibility and dock availability.
Shipyards invest in cranes and equipment.
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Recent survey of yards internationally with docks
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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.
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Cape Town and Durban have 3 yards per Port
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sharing one dry-dock.

121. In SA = misaligned
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shipyards can not invest in facilities and cranes.
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The NPA does not make a reasonable return as a
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passive service provider to the industry.
Solution = concession operating of docks to yards
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to allow the correct investment and operating
model.

122. Generates foreign income
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Massive sustainable job creator
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Essential port service and national strategic
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benefit
Large generator of tax revenue
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123. Cape Town Port
Overview:
SA’s closest port to West African oil fields
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Industry has traditionally serviced oil rigs, supply
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vessels and offshore related ships such as crane
barges
Offshore vessels are too large for the Suez Canal and
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thus round the Cape
Over 10 500 people are employed in this industry in
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Cape Town alone

124. For over 20years we have formed various oil and
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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
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Bay and other ports and not one infrastructural
realignment or investment can be listed as a
component to improve our footprint in this time.

125. Robinson dry-dock is in the waterfront complex -
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unsuitable for 24 hour operations.
The synchrolift used to dock over 380 vessels per
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annum - is also in the waterfront area.
Cape Town does not have any repair quays
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equipped with adequate cranes for offshore and
diamond mining vessels.
All dry docks nationally require infrastructure
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upgrades in terms of cranes and services.

126. Durban dry-dock

127. Cape Town dry-dock

128. Trends in Local Ship Repair vs
World Ship Building:

129. Namibian Comparison:
Namibian Port Authorities – Namport invested in
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two floating docks and upgraded the ship lift.
Floating docks are privately operated.
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Supply vessels now dock in Walvis Bay – CT used
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to dock 4 per month!!
Rigs are now also repaired in Walvis Bay
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130. Industry Summary:
Ship repair offered in all SA ports.
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Industry has clusters – ready to engage.
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The NPA unfairly blamed for the industry short
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comings, infrastructure conditions and dry dock
bookings.
You can not however keep beating parties if the
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operating model is incorrect.
We are losing market share and opportunities.
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131. Positively: NPA commissioned a study by Price
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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
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anxiously for the action to follow to resolve the
misalignment.
Will this study amount to anything???????
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132. SA has an obligation to provide essential repair
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services ports but we have opportunity to
participate in a foreign income, labour intensive
and sustainable business.
Need = serious engagement between the
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Transnet, NPA, Trade and Industry and Ship
Repair to re-structure business.
No time left and decisions are required urgently to
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maximize opportunities.

133. This is exactly in line with national requirements
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to generate foreign income and grow
employment.
Lets engage and build a better service and future
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together!
THANK YOU FOR YOUR INTEREST
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