1

Operation Phakisa Presentation

Invest in South Africa Oceans Economy Seminar
6-7 July, South Africa House, London, United Kingdom

Contents
The South African Ports System
Operation Phakisa Initiatives : Marine Transport and Manufacturing
Improving Existing Facilities
Private Sector Investment Opportunities and Timelines
Port of Richards Bay, East London and Saldanha Bay

TNPA as an integral Operating Division of Transnet Group

Rail

Owns &
Operates
20,500 km
track,
including
1,500 km
dedicated
heavy haul

Ports

Supports TFR
with rolling
stock
maintenace

Landlord to 8
commercial
Ports around
the South
African
coastline

Pipelines

16 cargo
terminal
operations
across South
African Ports

3 800 km of
pipeline
capacity for
petroleum and
gas products

Supporting

South African Ports

Gauteng

Richards Bay
Port Nolloth

Durban

East London

Saldanha

Cape Town
Mossel Bay

Ngqura (Coega)
Port Elizabeth

2,798 km of
Coastline
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Contents
The South African Ports System
Operation Phakisa Initiatives : Marine Transport and Manufacturing
Improving Existing Facilities
Private Sector Investment Opportunities and Timelines
Port of Richards Bay, East London and Saldanha Bay

The Lab recommended the following initiatives for Marine

Transport and Manufacturing
A Infrastructure and operations

B Skills and capacity building

1 Create supportive funding and revenue

model

9 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

2 Establish purpose-built oil and gas port

infrastructure by appointing Facility
Operators Saldanha Bay
3 Align on Implementation of
government policy
4

Prioritise Transnet and TNPA funding

allocation towards marine
manufacturing

5 Maintain and refurbish existing

facilities
6 Unlock investment in new and existing
port facilities
7 Implement Strategic Prioritised Project
Richards Bay
8 Implement Strategic Prioritised Projects
East London

10
Create dedicated Occupational Teams
for MTM Sector (professional, trades,
operators and seafarers)

Establish trade RPL, CBMT or Centres of

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Specialisation in Saldanha Bay and
Richards Bay

Train 18,172 learners as artisans, semi12

skilled workers and professionals over
the next 5 years
13
Increase usage of ESSA system and
targeted career awareness services as a
high value recruitment tool for MTM

Market growth

15 Create and implement a public

procurement and localisation
programme
16 Develop a strategic marketing
campaign and value proposition for
target markets
17 Propose inclusion of preferential
procurement clause in the African
Maritime Charter
18 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)

Increase capacity to develop skills for

14
~1,200 ratings and ~720 officers per
year

i. TNPA Transnet National Ports Authority

6ii.ESSA Employment Services of South Africa

iii.TVET Technical and Vocational Education and Training

iv. RPL Recognition of Prior Learning

v. CBMT Competency-based Modular Training

TNPAs immediate focus is on addressing infrastructure

constraints
A Infrastructure and operations
1 Create supportive funding and
revenue model
2 Establish purpose-built oil and gas
port infrastructure by appointing
Facility Operators Saldanha Bay

2
7

5 These initiatives require capital investment

over the next 5 years.
8

Initiative

Details

3 Align on Implementation of
government policy

Initiative 2

Acceleration of identified ship/rig Repair and Supply Bases investments

at the port of Saldanha

4 Prioritise Transnet and TNPA funding

allocation towards marine
manufacturing

Initiative 5

Acceleration of the refurbishments of existing ship repair facilities

under the control of TNPA

Maintain and refurbish existing

facilities

Initiative 7

Dredging at the port of Richards Bay to accommodate the introduction of

a floating dock

Unlock investment in new and existing

port facilities

Initiative 8

Refurbishment of the East London slip way to accommodate boat

building

7 Implement Strategic Prioritised Project

Richards Bay
8 Implement Strategic Prioritised
Projects East London

Immediate Impact on TNPA

Contents
The South African Ports System
Operation Phakisa Initiatives : Marine Transport and Manufacturing
Improving Existing Facilities
Private Sector Investment Opportunities and Timelines
Port of Richards Bay, East London and Saldanha Bay

Overview of Operation Phakisa : Existing Ports

Operation Phakisa Projects (Initiative 5)

Investment in existing Ship Repair Facilities 2015/16
Cape Town, Durban, East London, Port Elizabeth, Saldanha Bay

Total TNPA Budget for next 5 years

10

Estimated Cost
R 320m

R 2Bn

Contents
The South African Ports System
Operation Phakisa Initiatives : Marine Transport and Manufacturing
Improving Existing Facilities
Private Sector Investment Opportunities and Timelines
Port of Richards Bay, East London and Saldanha Bay

11

Operation Phakisa Projects (Initiatives 2,7,8)

Estimated Cofunded
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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Project

Objective

Operation Phakisa Projects (Initiatives 2,7,8)

Project

Advisor
Project
Analysis
Completed

Business Case
Development
and Approval

Procurement
of Preferred
Bidder
Completed

Financial
close and
appointment
of Bidder

Required
Operational
Date

Saldanha Bay Oil and

Gas repair and
supply base facilities

Sept 2015

Sept 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

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Stakeholder engagement
Engagements concluded
Local stakeholder engagements have
been concluded
Planned Engagements

International market players

Offshore Europe

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Place
Cape Town
Place
London , China,
Singapore, Korea,
Netherlands, America

Aberdeen

Dates
3 June 2015
Dates

August 2015

8 11 September 2015

Envisaged Phasing and timelines for the initiatives

Start
Procurement of Transaction
Advisors

Jan-15 May-15

Business Case Development and Approval

Project Procurement
RFQ
RFP
Intiative 2 - Saldanha Rig Repair Financial close and appointment of bidder
Construction
Environmental Impact Assessment
Construction
Operation

Intiative 7 - Richards Bay

Intiative 8 - East London

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Finish FY 2014/15
Q4

Business Case Development and Approval

Project Procurement
RFQ
RFP
Financial close and appointment of bidder
Construction
Environmental Impact Assessment
Construction
Operation
Business Case Development and Approval
Alignment of Business Case with Initiative 1
(DTI Incentive package)
Project Procurement
RFQ
RFP
Financial close and appointment of bidder
Construction
Environmental Impact Assessment
Construction
Operation

Apr-15

Sep-15

Sep-15
Mar-16
Jan-17

Feb-16
Dec-16
Sep-17

Sep-15 May-16
Sep-17 Sep-19
Sep-19
Sep-15

Nov-15

Nov-15
Apr-16
Jun-16

Mar-16
Jun-16
Sep-16

Nov-15
Nov-16
Jul-18

Jul-16
Jun-18

Nov-15

Jan-16

Jan-16
Jul-16
Nov-16

Jun-16
Nov-16
Jan-17

Jan-16
Jan-17
Nov-18

Sep-16
Nov-18

Q1

Q2

FY 2015/16
Q3

Q4

Q1

FY 2016/17
Q2
Q3

Q4

Q1

FY 2017/18
Q2
Q3

Q4

Q1

FY 2018/19
Q2
Q3

Q4

Q1

FY 2019/20
Q2
Q3

Q4

Contents
The South African Ports System
Operation Phakisa Initiatives : Marine Transport and Manufacturing
Improving Existing Facilities
Private Sector Investment Opportunities and Timelines
Port of Richards Bay, East London and Saldanha Bay

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Port of Richards Bay

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Richards Bay

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Richards Bay : Ship Repair (Artist Impression)

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Port of East London

East London is the only river
port in South Africa, situated
on the Buffalo River;

Ship Repair
Facility

The port has multi-purpose,

liquid bulk and dry bulk
terminals.

Multi-Purpose
Terminal

It is well known for its worldclass automotive terminal;

Future expansion of the port is

restricted by the narrow and
shallow river basin.

Automotive
Terminal
Liquid Bulk
Dry Bulk

CARGO TYPE

TERMINAL

BERTHS

USABLE BERTHS

TERMINAL CAPACITY

BERTH LENGTH

BERTH DRAFT

Containers

Quay 6

K, L

93 000

506m

10,7m

Cars

West quay

P, R

130 000

559m

9m

Dry bulk

East London bulk

S, T

4 000 000

388m

10,7m

Break bulk

Quay 3 and 4

G, I

250 000

492m

11m

Liquid bulk
20
20

Tanker berth

TB

2 400 000

259m

10,7m

Port of East London : Ship Repair Facilities

Operator: Transnet National Ports Authority

Repairers: (Private Repairers)

East London Shipyard;

Mac Engineering;
Land Marine Projects;
Intsimbi Group;
GL Enterprise Trust;
Amnion Projects;

Key Deliverables

Dock Length: 200m, Max beam: 24.8m

Equipment:
-

4 x Cranes (2 x 15 ton, 1 x 5 ton and 1 x 4 ton)

Commissioned in 1947

Shop 17
Area: 2 690m2

Sheet Pile Wharf

Refurbishment of Graving Dock over next 3 years:

Refurbishment of dry-dock cranes;
Replacement of crane rails;
Refurbishment of dry-dock gate;
Replacement of switchgear;
Refurbishment of pumps;
Refurbishment of Slipway area

SLIPWAY

DRYDOCK

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Project
In support of Blue Economy, NDP:
Industrialisation
Job Creation
Skills development
Create a new funding and revenue model, helping to reduce
cost for infrastructure.
Refurbish and optimise operations of existing infrastructure.

Repair Quay

Port of Saldanha Bay

South Africas deepest
port (draft 21.5m)
Iron ore export jetty
provides berthing for
large dry bulk and liquid
bulk vessels.

Iron Ore &

Liquid Bulk
Berths

Iron Ore
Stockpiles

Premier iron ore export

port - in excess of 50mt
per annum.

Multi-Purpose
Berths

Multi-purpose terminal
and facilities;
The port has the potential
for expansion to support
adjacent industrial zone
development.

Oil & Gas

Fabrication

CARGO TYPE

TERMINAL

BERTHS

USABLE BERTHS

TERMINAL CAPACITY

BERTH LENGTH

BERTH DRAFT

Iron ore

Iron ore

101, 102

60 000 000

1 260m

23m

Break bulk

Multi-purpose

201, 202, 203, 204

5 800 000

874m

13m to 15m

103

25 000 000

360m

23m

22
Liquid bulk

Liquid bulk

Saldanha Future Expansion

Proposed
Mossgas Quay
Extension

Aerial picture of Port

General Maintenance
Quay (OSB)

Proposed Oil & Gas Repair

Berth
Proposed
Iron Ore
Berth

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Saldanha : Rig Repair Berth 205

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Saldanha : Rig Repair Berth 205 (Artist Impression)

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Saldanha : Oil and Gas Supply Base (Artist Impression)

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Saldanha : Mossgas Jetty

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Saldanha : Mossgas Jetty (Artist Impression)

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Thank you