1. 1 R Adm Bernhard H. Teuteberg Chief Director Maritime Strategy Chief Director Maritime Strategy and and R Adm (JG) Bubele Mhlana R Adm (JG) Bubele Mhlana Director Fleet Force Preparation Director Fleet Force Preparation South African Navy South African Navy

2. 2 The aim of this presentation is to provide the Portfolio Committee on Agriculture, Forestry and Fisheries an insight into the present status of the DAFF vessels being operated by the SA Navy

3.  R Adm B.H.Teuteberg – Chief Director Maritime Strategy  R Adm (JG) S.Pillay – Director Maritime Plans  R Adm (JG) M.Lobese – Director Fleet Logistics  R Adm (JG) B. Mhlana – Director Fleet Force Preparation 3

4.  Introduction  Timeline of Main Activities  Memorandum of Understanding  Management Responsibility  Vessels Handed Over  Financial Status  Status of Vessel  SAS AFRICANA  Impact on Fishing Industry 4

5.  Private Sector Contract  Outcome Recent Meeting Between DAFF/SA Navy  Lessons Learnt  Recommendations  Conclusion 5

6. 6 30 Aug 11: Initial meeting between officials in Cape Town (decision to refer matter for approach between relevant Ministers) – No further contact Indications that contract has been awarded: no further correspondence Approach by MAFF to MOD&VM on 5 March 2012 22 March 2012: Meeting between officials from DAFF and SA Navy In good faith agreed to cooperate Existing contract expires on 31 March 2012 30 March 2012: MOU signed between relevant Ministers 13 April 2012: SLA signed between parties

7. 7 The SA Navy shall perform the shipping management functions Initial period of 12 months Subject to the Defence Act Monthly re-imbursement of all costs associated with shipping management function Vessels to be handed over on or before 31 March 2012 A comprehensive audit to be conducted on each vessel by an accredited third party SLA to be signed

8.  Vessels being Operated under the Defence Act  Shipping Management Functions:  The crewing (manning) of the vessels (not specialised staff; eg scientists, fishing inspectors, etc)  The technical management of these vessels (maintenance, repair and life-cycle management)  The provisioning of these vessels  The bunkering of these vessels  The operation of these vessels  The accounting of all aspects relating to these functions 8

9. 9 VesselBuiltL.O. A (M) UpgradedFunctionSAMSA Class Notation Africana1982782000/2001ResearchClass VIICape Town Algoa1975561992ResearchClass VIIICape Town Ellen Khuzwayo 200743 ResearchClass VIIICape Town Sarah Baartman 200483 PatrolClass VIICape Town Lilian Ngoyi200447 PatrolClass VIIICape Town Ruth First200547 PatrolClass VIIICape Town Victoria Mxenge 200643 PatrolClass VIIICape Town Florence Mkhize 200614.52008Patrol Boat N/ACape Town Vessels Handed Over to the SA Navy

10. Invoice Month DescriptionAmountReceived in DOD Date Received in DOD AprilOperatingR104 045.62 21 Sep 12 MayOperating & HRR1 861 689.29 JuneOperating & HRR1 753 383.00R22 039.0021 Sep 12 JulyOperating & HRR5 707 947.00R4 177 616.0021 Sep 12 AugustOperating & HRR4 774 947.00R0N/A SeptemberOperating & HRR1 953 131RoN/A 10

11. 11

12. 12

13. 13 SAS AFRICANA: 30 years old

14. Acquisition Start upDisposal LIFE (YEARS) Design, Develop, Purchase Construction CASH FLOW Operation Maintenance Development Disposal Life-cycle Concepts 20% 80% SAS AFRICANA

15.  Accept important role that vessel is playing  Make decision to replace her within 5 years  Commence project study immediately with associated costing  Allow SA Navy to conduct proper refit; extend life by 5 years  If necessary lease suitable vessel to conduct surveys in meantime  Create ownership for vessel 15

16.  Answers can only be provided by DAFF 16

17.  The SA Navy is not able to comment on the contracting of any entity within the private industry to conduct the shipping management function  The SA Navy believes that it can and should conduct the shipping management function for vessels belonging to the Government  Create permanent home and management responsibility for vessels; not just operating 17

18.  On strategic level: extremely positive  Understand that on the tactical level still some teething problems  Some of the misunderstandings resolved  Action list compiled and being addressed  Contact at all levels  Can only work if this venture is conducted as an equal partnership. 18

19.  Only one command and control system to be used  DAFF vessels can become a specific Squadron within the SA Navy:  Vessels under configuration control  Maintenance and repair integrated  Naval Dockyard can become more effective and efficient  Ownership  Supplemented by Navy patrols  Experiential learning for younger Navy members 19

20. 20