1. Strategic Customer Forum
Heading heading heading
Date
Strategic Customer Forum
Operation Phakisa Eastern Cape Region: 04 November

2. -AAA
Contents
TNPA’s Responsibility as Landlord Operation Phakisa Response to Phakisa - Existing Facilities - Private Sector Projects Closing Remarks

3. Core functions (National Ports Act Section 11)
Landlord
Promote the use, improvement and development of ports, and control land use within the ports, having the power to lease port land under conditions it determines
Optimally serve the economy
Master planner
Plan, improve, develop and maintain port infrastructure
Regulator and Controller
Make and apply rules to control navigation within port limits and approaches, loading, unloading and storage of cargo, development of ports and off-shore cargo handling facilities, ensure protection of the environment within port limits, enhancement of safety and security within port limits
Controller of ports services & facilities
Ensure that port services and facilities are provided, and may enter into agreements or licence other parties to provide these
Marketer & administrator
Ensure that adequate, affordable, equitable and efficient port services and facilities are provided for port users
Change agent
Ensure non-discriminatory, fair, transparent access to port services and facilities; advancement of previously disadvantaged people; promotion of representivity and participation in terminal operations; enhanced transparency in port management
Coordinator with other state agencies
Advise on all matters relating to the port sector, and liaise with all stakeholders 3

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Contents
TNPA’s Responsibility as Landlord Operation Phakisa Response to Phakisa - Existing Facilities - Private Sector Projects Closing Remarks

5. Exploring the potential of the ocean economy through Marine Transport and Manufacturing (MTM)
Government policy focused on GDP and jobs growth to resolve inequality, unemployment and poverty…
…Cabinet requested that Operation Phakisa evaluate potential of the Oceans Economy
National Development Plan: aims to eliminate poverty and reduce inequality by by, amongst other things, growing an inclusive economy
New Growth Path: provides the framework for economic policy and the driver of South Africa’s jobs strategy
Industrial Policy Action Plan: specific plans to grow the economy and create jobs through industrial policy
Four labs determined by Cabinet as priorities for Operation Phakisa
Marine Transport and Manufacturing
Oil & Gas Exploration
Aquaculture
Marine Protection and Governance
Our lab focused on accelerating the growth of the the Marine Transport and Manufacturing sector:
Marine transport: cargo handling, national registry
Marine manufacturing: rig & ship repair, boat building, offshore O&G services

6. Operation Phakisa : GDP contribution and job creation in
Marine Transport and Manufacturing (MTM) Sector
Initial lab vision
Baseline (2010)
Target for interventions
Accelerate the GDP contribution of the sector
Increase the contribution to GDP by R14-23bn by 2019
~R15bn
GDP Contribution
Increase total employment
Increase the number of total jobs created by 40,000-50,000 jobs by 2019
~15,000 jobs
Job
Creation

7. The Lab recommended the following initiatives for Marine Transport and Manufacturing
Infrastructure and operations A
Skills and capacity building B
Market growth C 1
Create supportive funding and revenue model
Establish purpose-built oil and gas port infrastructure by appointing Facility Operators – Saldanha Bay
Align on Implementation of government policy
Prioritise Transnet and TNPA funding allocation towards marine manufacturing
Maintain and refurbish existing facilities
Unlock investment in new and existing port facilities
Implement Strategic Prioritised Project – Richards Bay
Implement Strategic Prioritised Projects – East London 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
Create dedicated Occupational Teams for MTM Sector (professional, trades, operators and seafarers)
Establish trade RPL, CBMT or Centres of Specialisation in Saldanha Bay and Richards Bay
Train 18,172 learners as artisans, semi- skilled workers and professionals over the next 5 years
Increase usage of ESSA system and targeted career awareness services as a high value recruitment tool for MTM
Increase capacity to develop skills for ~1,200 ratings and ~720 officers per year 15
Create and implement a public procurement and localisation programme
Develop a strategic marketing campaign and value proposition for target markets
Propose inclusion of preferential procurement clause in the African Maritime Charter
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) 2 16 10 3 17 11 4 18 12 5 13 6 7 14 8
TNPA – Transnet National Ports Authority
ESSA – Employment Services of South Africa
TVET – Technical and Vocational Education and Training
RPL – Recognition of Prior Learning
CBMT – Competency-based Modular Training 7

8. TNPA’s immediate focus is on addressing infrastructure constraints
Infrastructure and operations A
Immediate Impact on TNPA 1
Create supportive funding and revenue model
Establish purpose-built oil and gas port infrastructure by appointing Facility Operators – Saldanha Bay
Align on Implementation of government policy
Prioritise Transnet and TNPA funding allocation towards marine manufacturing
Maintain and refurbish existing facilities
Unlock investment in new and existing port facilities
Implement Strategic Prioritised Project – Richards Bay
Implement Strategic Prioritised Projects – East London
These initiatives require capital investment
over the next 5 years. 2 5 7 8 2 3 4 5 6 7 8 8

9. -AAA
Contents
TNPA’s Responsibility as Landlord Operation Phakisa Response to Phakisa - Existing Facilities - Private Sector Projects Closing Remarks

10. Operation Phakisa Projects (Initiative 5)
Investment in existing Ship Repair Facilities
Estimated Cost
Estimated investment in existing facilities : Next 5 years
R 2Bn
Cape Town, Durban, East London, Port Elizabeth, Saldanha Bay
R 320m
Projects have been identified across the ports to commence in 2015/16;
The planned investments will result in the refurbishment of the existing repair facilities, including cranes and other equipment utilised at these facilities;
The status of the projects are set out on the next slides;

11. Maintenance and Refurbishment of existing facilities : Durban
Project
14/15
15/16
16/17
17/18
18/19
19/20
20/21
21/22
22/23
ETC
Comments
DURBAN
Replacement of South side
crane rail at Dry Dock
FEL 3: Project to be sanctioned in November 2015
Erect perimeter wall on north side of Drydock
Completed
Repair of inner and outer caisson of Dry Dock
FEL 4: To be completed in November 2015
Execution: Dockyard Lighting and Low Voltage Electrical Distribution Upgrade
Completed
Welding Equipment Set for Shop 24
Project Awarded
1.57
Drydock Jib Cranes
FEL3: Project to commence in 2016/17. Feasibility completed
Drydock 6 Tons Forklift
Project awarded
1.23
Drydock Compressors
FER: Finalizing business case
7.50
Upgrade of Floating Dock
FEL3: Completed. FEL 4 to commence in 2016/17
Feasibility: Upgrade of Dockyard Infrastructure (E&M)
FEL3: Completed. Work breakdown structure finalized. FEL 4 to commence in 2016/17
Execution: Upgrade of Dockyard Infrastructure (E&M)
Repair Concrete works in the Dock
10.00
FEL4: Project Sanctioned. Tender phase. 11
BVA SP-v6

12. Maintenance and Refurbishment of existing facilities : Cape Town and Mossel Bay
Project
14/15
15/16
16/17
17/18
18/19
19/20
20/21
21/22 PM
ETC
Comments
CAPE TOWN
Refurbishment of Sturrock Drydock
FEL 3: To be awarded in November 2015
Refurbishment of Robinson Drydock
FEL 3: To be awarded in November 2015
Refurbishment of Synchrolift
FEL 4: in execution
Replacement of water circulating pumps at Sturrock dry dock
To be awarded in August 2015
Replacement of 10 cranes for Ship repair
FEL 3: Completed. To be awarded in November 2015
Widening and lengthening of Repair quay
FER : Project deferred
MOSSEL BAY
Refurbishment of Cradle & Side Slipway
3.00
Projects only commencing in 2016/17
Reconstruct lead-in jetty to slipway
12.00
Slipway upgrade 12
BVA SP-v6

13. Maintenance and Refurbishment of existing facilities : East London, Port Elizabeth and Saldanha Bay
Project
14/15
15/16
16/17
17/18
18/19
19/20
20/21
21/22
22/23
ETC
Comments
EAST LONDON
PHASE1 (Switchgear) : Execution
PHASE2 (Refurbish & Upgrade) : Award November 2015
Refurbishment of Graving Dock + Refurbish Pumps
Refurbishment of Slipway Area
Execute as private sector investment
PORT ELIZABETH
Replacement Lead-in Jetties slipway
Execution: to be completed in 2017
40 ton Slipway Refurbishment (Feasibility & Execution) New 100t hoist
Execution: to be completed in 2016
Modifications of 1200 ton slipway cradle
3.00
Execution: to be completed in 2017
SALDANHA
Refurbishment of Rock Quay (GM Quay area) Feasibility &
Execution: to be completed in 2015/16 13
BVA SP-v6

14. -AAA
Contents
TNPA’s Responsibility as Landlord Operation Phakisa Response to Phakisa - Existing Facilities - Private Sector Projects Closing Remarks

15. Operation Phakisa Projects (Initiatives 2,7,8)
The process to provide new facilities consists of the following steps :
Transnet appointed Ernst & Young as Transaction Advisors to assist with implementing Initiatives 2,7,8;

16. Operation Phakisa Projects (Initiatives 2,7,8)
Current Status
Completed
In Process

17. Operation Phakisa Projects (Initiatives 2,7,8) : Overall Scope
Objective
Estimated Co-funded 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
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

18. Operation Phakisa Projects (Initiatives 2,7,8) : Execution Phases
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
October 2015
Dec 2016
Sept 2017
2019
Richards Bay Ship repair facilities
Nov 2015
June 2016
Sept 2016
East London boat building facilities
Jan 2016
Nov 2016
Jan 2017      
The Analysis and Business Case phases are in execution phase and on track to meet the indicated timelines

19. Local Stakeholder engagement completed
Planned Engagements
Place
Dates
SAGOA
Cape Town
3 June 2015
PetroSA
Dormac
DCD Marine
Cape town
4 June 2015
Nautic Africa
DOT, DTi and DPE
Johannesburg
11 June 2015
Transaction Advisor Introduction
TNPA EXCO
22 June 2015
DAMEN
Durban
SA Shipyards
23 June 2015
Elgin Brown
SAMSA           

20. Stakeholder engagement : International
Planned Engagements
Place
Dates
Offshore Technology Conference
Houston
4 – 7 May 2015
Offshore Europe
Aberdeen
8 – 11 September 2015
International market players
London , China, Singapore, Korea, Netherlands, America
Subsequent to Business case Formulation  

21. -AAA
Initiatives 2,7,8 : Artist impressions of new facilities at Saldanha Bay and Richards Bay

22. Saldanha : Rig Repair Berth 205 (Artist Impression)22

23. Saldanha : Mossgas Jetty (Artist Impression)23

24. Saldanha : Oil and Gas Supply Base (Artist Impression)24

25. Richards Bay : Ship Repair (Artist Impression)

26. Closing Remarks Phakisa is happening;
Country growth and expansion of the economy is dependent on creating port capacity across the Port System;
Oceans economy as a “new” driver for economic growth and job creation;
Oil and Gas repairs/refurbishment : Significant potential to create competitive advantage for South Africa;
Alignment with Saldanha IDZ and SAOGA;
New Port Facilities for Storage and Repairs :
Investment opportunities for private sector;
Supplier Development opportunities;
TNPA is fulfilling its strategic role as an Infrastructure Provider and developing an integrated port system to grow the economy;