Presented by: Chris Sparg at the 2009 Railways and Harbours Conference in Cape Town. Second part

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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