1. Chairperson – Sobantu Tilayi 30 March 2016
Maritime Sector Skills Technical Task Team (MSSTTT) Update on the Implementation
Chairperson – Sobantu Tilayi
30 March 2016

2. Agenda Introduction and Background Operation Phakisa
Progress on the Implementation of the Report
Some issues for further consideration
Way Forward

3. About MSSTTT
Maritime Skills Technical Task Team established in September 2013
To work with key stakeholders within the maritime sector to investigate blockages within the maritime skills development pipeline and propose measures that can be implemented to address those.
Composition:
The Department of Transport
The Department of Basic Education
The South African Maritime Safety Authority
TETA
The Department of Minerals and Energy
The Department of Trade and Industry
Department of Higher Education and Training
Transnet
Maritime Law Association
SA Maritime Training Academy (SAMTRA)
SA Oil and Gas Association
Grinrod Limited
Organised Labour

4. About MSSTTT Deliverables:
Investigate key challenges within the pipeline.
Identify the skills shortages in the maritime sector
Identify critical skills required in the maritime sector
Provide an approach in addressing the shortage of skills in the maritime sector.
Identify key role players and determining the cost of implementation; and
Provide a report to the Council with recommendations to assist the identified implementing bodies in ensuring the successful acquisition and growth of the maritime skills and therefore the growth of the sector in the short, medium and long-term.

5. Process Followed TOR finalised and approved by TWG in Nov 2013
Two work streams created: supply-side issues; demand-side issues
Review of documentation, benchmarks, oral submissions, etc
Blockages identified and interventions proposed
Consultation with stakeholders
Report finalised and approved by TWG
Consultation with implementing bodies
Established linkages with Operation Phakisa
Report and Recommendations presented to HRD Council on 28 November 2014 and approved
Currently engaging implementing bodies thereafter the Task Team will hand over all its work to the Secretariat

6. Maritime Sector Skills Landscape

7. Some of the blockages identified
Some of blockages that have been identified include (this not an exhaustive list):
High demand for seafarers with limited supply
Lack of berths for candidate officers, which is a requirement for qualification
Lack of ships carrying the SA flag means that SA has a limited ability to access cadetship berths
Available skills not specialised for maritime industry – e.g. artisans exist but have no specialisation in maritime. This particularly applies in ship building, ship repair as well as Oil and Gas Sectors
Weak maritime culture, linked to lack of awareness about career opportunities in the sector
Mobility of SA skills to export markets hampered by entry requirements into foreign countries
No national approach to funding of MET
Differences between SAMSA and SAQA accreditation
Limited capacity for maritime education. Only two universities of technology and no TVET colleges
Limited access to employment opportunities, maritime jobs require an elaborate international marketing
Limited ability of the industry (Ship repair, Oil &Gas) to attract larger scale projects due to lack of infrastructure.

8. Some proposed solutions
Proposed interventions include (this not an exhaustive list):
Proper coordination of training by all role players (Transnet School of Maritime Excellence, SAMSA National Cadetship Program, other players). SAIMI might be the solution.
Need to address the ship registry in order to attract ships to train South Africans. This is over and above the potential international employment. There are policy implications that will need to be addressed.
The SA Agulhas has provided a good solution and the idea needs further development.
Need to increase training capacity starting from High School level through to University including the introduction of TVET Colleges into the offering.
There needs to be a closer correlation between the maritime industry development initiatives as well as the skills development
Marketing of seafarers in the international market. Embassies can play a role.
Better coordination and approach between all concerned government departments (DOT, DTI, Minerals and Energy, Transport, DPE, Transnet, SAMSA, Agriculture Forestry and Fisheries)
A policy that will ensure growth of the maritime sector including localisation of services and resources in the industry.
A Maritime Skills Fund in line with international trends should be considered to better manage current and future efforts, with a specific focus on skills development in the various sub-sectors. International benchmark shows that ALL MARITIME TRAINING IS GOVERNMENT FUNDED AND INDUSTRY SUPPORTED

9. Introduction of Operation Phakisa
Operation Phakisa was launched in July 2014 as the Task Team was Concluding its work.
This Phakisa Process was through a Lab Methodology and consisted of four labs
Maritime Transport and Manufacturing (MTM Lab)
Oil and Gas
Marine Aquaculture
Maritime Governance
The Research as well as Output Work of MSSTTT was used as an input to the Phakisa Process
The work fell largely within the MTM Lab
Operation Phakisa determined that SAIMI become the Implementing Agent for the Maritime Skills Program (Which are largely the result of the MSSTTT Work)
A budget of R295 million for the first three years (2015 – 2017) has been allocated for the set up and programs of SAIMI

10. BLUE ECONOMY CONTEXT
Growth in GDP and job creation potential of the oceans is driven by 9 main sectors
Marine transport and manufacturing
Tourism
Offshore oil and gas
Construction
Renewable energy
Fisheries and aquaculture
Communication
Desalination
Total
Marine protection services
GDP, R billion 16 15 4 8 7 54 -
2010
42-61
25-35
11-17
20-21
14-17
10-16
7-10
2033
Jobs, 000 90
0.4
162 30 19
316
40-56
35-52
788-1,004 6% 4% 9%
25% 1% 0% -
CAGR, %

11. Maritime Transport and Manufacturing lab at the Operation Phakisa
OPERATION PHAKISA 3-FEET PLAN
Maritime Transport and Manufacturing lab at the Operation Phakisa
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 Specialization 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 encouragement 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 3 10 17 4 11 18 12 5 6 13 7 14 8

12. Initiative 3:Capacity to develop skills
There are limited number of seafarers to support vessel manning and management, therefore there is a need to create a skills development pipeline for seafarers.
Initiative concept/details/highlights:
Ensure that there is capacity to produce 720 officers annually
Increase production of maritime students (navigation and engineers) from the Institutions of Technology (DUT and CPUT) from the current 240 to 480
Commission NMMU to supply 240 maritime students
Produce 1,200 ratings annually from TVET Colleges.
Ensure that TVET Colleges offer ratings studies
Ensure availability of cadetship berths for the above ratings as well as officers
Grow the number of ships providing cadetship berths
Coordination of Maritime Education and Training
Establish a dedicated institute for coordination of MET including research
Implementing agency:
SAMSA
Key stakeholders identified:
DOT
DHET
DBE
DOL
Required resources
Investment (R mn): R210 million/year
Implementation timeframe
Start date: Sept 2014
End Date: Annually
Key Performance Indicator
Production of 720 Officers per year
Production of 1200 Ratings per year
2016: 720 Officers and Ratings Employed per year
2017:

13. Initiative 4:Funding and Support for SA seafarers
Taking into account the initiative to increase capacity to produce more seafarers that will be put in place, there is a need to reposition South Africa as a Seafarer sourcing destination, with internationally marketed and supported seafarers.
Initiative concept/details/highlights:
Ensure that there is funding for production of seafarers
Create a Maritime Skills Development Fund
Create an international marketing and support network
Ensure a seafarer/maritime desk in every SA mission abroad
Ensure that seafarers are able to move into countries that have inefficient immigration requirements through negotiated bilateral arrangements
Ensure that country bilateral negotiations carry aspects of seafarer access and movements
Implementing agency:
SAMSA
Key stakeholders identified:
DOT
DHET
Home Affairs
DIRCO
Required resources
Investment (R mn): see previous slide
Implementation timeframe
Start date: Sept 2014
End Date: Sept 2019
Key Performance Indicator
Seafarer Development Fund
Seafarer Desk in every SA Mission Abroad
2015: A capacitated fund
2017: Seafarer services available in selected missions abroad

14. Key Updates HRDC MSTTT REPORT PHAKISA REF PROGRESS MTM Initiative 7
Lack of a strategic perspective to MET
MTM Initiative 7:
Establish an institute to coordinate maritime sector training
SAIMI was launched in November It is already functioning as an Implementing Agent for Phakisa Skills Program. There is a need to revisit funding and capacity within SAIMI
Challenges with maritime education at high school level.
No Ref
Focused Schools Policy by DBE to provide guidance for Maritime high schools. Eastern Cape starting 2 Schools in 2016
Finding berths for cadets to complete their sea time requirements
MTM Initiative 5:
Training Berths
Ongoing. 17 International Companies participating taking a total of 543 Cadets. New Ships being registered on SA Register

15. Key Challenges HRDC MSTTT REPORT PHAKISA REF PROGRESS
Establish Maritime Skills Development Fund
MTM Initiative : Funding of various programes
Not yet in place. This still requires intervention from HRDC
Ensure available training berths
MTM Initiative 5: Training Berths
Ongoing. 17 International Companies participating taking a total of 543 Cadets. This number needs to increase to 720 officers and 1,200 ratings
Challenges with provision of maritime training by private training providers:
Initiative 7: Readiness of TVET Colleges to produce maritime subjects
Not yet in place, curriculum still being developed. Target for completion end 2015
Funding of the Agulhas
MTM Initiative 5.5
Ongoing. Discussions with NSF, DHET, SAMSA. This has become a critical binding constraint that requires urgent intervention

16. Challenges that still need to be addressed
Funding of training remains unresolved
Maritime Skills Development Fund not in place yet
Agulhas training vessel not funded and affecting the program
There needs to be a closer correlation between the maritime industry development initiatives as well as the skills development
Marketing of seafarers in the international market
Better coordination and approach between all concerned government departments and other stakeholders
Industry growth that spurs the demand for seafarers
Two Ships have been registered and will likely grow to six by end of 2015
A Crewing and Management Company set up in Port Elizabeth to employ seafarers on international shipping
A range of other services, mainly ship to ship and offshore operations being requested by international shipping
Outstanding policy development on Maritime Transport Policy, Cabotage, and other industry development

17. Our Proposed Way Forward
HRDC needs to continue monitoring the work and intervene as necessary
A formalised reporting to the Secretariat needs to be developed
Formalise institutional arrangements to govern the implementation of the MSSTTT Report

18. MARITIME Advisory Panel SAIMI/NMMU OPERATION PHAKISA: OCEAN ECONOMY ?
5 Labs
Gas & Oil
Transport
Manufacturing
Aquaculture
Marine Protection & Ocean Governance
Aquaculture & Pharmaceuticals
Industries & Subsectors
Off Shore & Mining
Shipping & Transport
Manufacturing &
Construction
Working Groups
DHET Chair ? ? ? ?
Human Resource Development Council Task Team
SAMSA
SAIMI
NMMU
Delivering Units
DMR
DOT
DTI
DAFF
DEA
Occupational Teams ? ? ?
Committee
DG’s Committee : Operation Phakisa Skills Plan Committee
DHET Chair : DOL; DST; DMR; DOE; DEA; DPE; DPW; DAFF; DWA; DPME
Advisory Panel
SAIMI/NMMU
DHET Experts from LABS, HEI & 4 College Representatives
Co-Ordinating Function
DHET/HEI/COLLEGE
STUDENT ENROLMENT PLAN PROGRAMME & QUALIFICATION MIX

19. OP Phakisa Oceans Economy / Maritime Industry
SAIMI with support from DHET
5 x Working Groups Chaired / Advised by Experts that are also Occupational Teams that include Delivery Units Leaders. Work is based on Phakisa 3 Foot Plans + HRDC TTT Work Plan
Multi Disciplinary Groups (All Role Players)
Expert Panel Based Quality Assurance Mechanism
National Departments link to Phakisa
SteerCos
DG ETD (Skills) Steering Committee
National DHET
SP + APP
Targets
DHET Functional Units (HEI, VCET, Skills)
HEIs + TVET Colleges + SETAs + NSF
Delivery

20. Thank you!