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SAMSA “enterprise of integrity” Presentation to African Ports and Maritime Conference Ports & Logistics: “A Vision for Future Integration” Compiled by: Sobantu Tilayi Presented by: Karl Otto 28 November 2011 Contents: • T H E S A M S A M A N D AT E A N D ROLE • D E F I N I N G T H E N AT I O N ’ S M A R I T I M E I N T E R E S T SEnvironmental Protection Vessel • THE MARITIME ECONOMY • M A R I T I M E D E V E L O P M E N T: A PRECONDITION FOR ECONOMIC DEVELOPMENT • L E G I S L AT I V E I S S U E S • CONCLUSION • G A L L E RY THE SAMSA MANDATE AND ROLE 1. Foundational Maritime Policy Mandate: National Transport White Paper 1996 The grand vision for South Africa’s transport is stated in the White Paper as being to … ‘support government strategies for economic and social development whilst being environmentally and economically sustainable’. The maritime policy imperatives and goals in the Transport Policy are articulated as: Developing maritime awareness; Assisting in the creation and fostering of an economic environment for the Maritime Transport Industry which will allow it to compete... with other nations; Contributing to the release of the full potential of the maritime industry in South Africa; and Modernisation of South Africa’s shipping administration 2. Legal mandate : SAMSA Act No. 5 of 1998 To ensure the safety of life & property at sea; To prevent and combat pollution of the marine environment by ships; and To promote the Republic’s maritime interests. The mandate positions SAMSA as the country’s strategic centre for maritime governance and development Key to the SAMSA’s mandate is a need to fully appreciate the maritime interests for the country and raise awareness for such interests. It is important to note that, these interests are best articulated when considered regionally, taking into account the rest of the African continent SOUTH AFRICA – A MARITIME COUNTRY - MARITIME INTERESTS South Africa’s maritime interests are strategic, economic, environmental and political 3,000 km coastline in 3 oceans – Atlantic, Indian and Southern Oceans, positioned on a major strategic shipping route (with 30% of the population settled along the coast) 8 commercial ports (15,000 employees), 12 official fishing harbours Fishing employs about 200,000 and feeds 3,6m people, generating R4,1bn in revenue Trade is over 50% of GDP (58% of GDP in 2008) 98% of SA trade by volume and 80% trade value is by sea 3.5% World sea trade (volume); top 15 countries on sea trade by distance (tonne-mile) Continental shelf claim increases South Africa’s sea land to 2.8 times land mass South Africa’s Search and Recue region is about 22 times larger than the land mass Extensive off shore interests (Islands, Antarctic, marine and offshore oil and gas) South Africa leads in Africa’s intra-regional and international trade All key partners such as in BRICS are regional maritime powers with vast maritime interests and capabilities in sea trade, commerce and naval influence South Africa’s strategic global interests and international obligations include providing safety of navigation for shipping, ensuring freedom of the seas, security of shipping as well as protection of the marine environment ) MARITIME SECTOR CLUSTER - A SECTOR BASED FRAMEWORK WAY FORWARD AND RECOMMENDATIONS Maritime Cluster Governance & Coordination largest island on earth with oceans on all sides: Atlantic Ocean (West) Indian Ocean (East) Southern Oceans (South) Mediterranean & Red Sea (North) total of 54 countries of which 39 (72%) are coastal or islands coastline of 31,000 km inland waterways of 300,000 square kilometres seaborne trade volume 91% Trade dependent GDP (eg RSA: 58% of GDP comes from trade) 2nd second largest land-mass in the world after Asia the largest number of land- linked states in the world (15) AFRICA’S MARITIME INTERESTS … KEY CONSIDERATIONS AND CHALLENGES GEO STRATEGIC CONSIDERATIONS The world’s oceans constitute about 70% of planet earth, providing the world with trade routes and coastal ecosystems which sustain both the global commerce and world climates. • With all its vast international and national interests and obligations, its location as a maritime country, the lack of awareness about the sector persists. • The maritime sector in South Africa suffers policy neglect and attracts very little attention as a sector which can create jobs, grow the economy and make effective interventions in society. • The sector remains un-transformed and a domain of expatriates in the absence of skills development focus for South Africans. • The maritime skills funding is negligible, with limited infrastructure and resource capacity for skills development programme. • • There can be no growth of the sector without investing in maritime skills development !!! INTRA-REGIONAL TRADE IN AFRICA IMPORTS EXPORTS AFRICA 9.6 8.7 DEVELOPING AMERICA 20.9 18.5 DEVELOPING ASIA 48.1 45.5 DEVELOPED AMERICA 23.3 39.8 DEVELOPED EUROPE 68.1 71.4 SOURCE: UNCTAD, 2008c. The African continent has the lowest intra-regional trade levels compared to other regions Africa is highly dependent on trade with countries over the oceans Africa’s top 7 exports with the rest of the world are concentrated around a few products, with crude oil alone accounting for 46% of the total Intra-African trade is fairly distributed between fuels, non-fuels primary goods (30%), of which ores and minerals = 11% and agriculture = 19%; manufactured goods (40%) TOP TEN EXPORTERS TO AFRICA and THE REST OF THE WORLD EXPORTS TO AFRICA COUNTRY SHARE OF TOTAL INTRAREGIONAL EXPORTS EXPORTS TO THE REST OF THE WORLD COUNTRY SHARE OF TOTAL AFRICAN EXPORTS TO THE REST OF THE WORLD SOUTH AFRICA 24.29 ALGERIA 17.36 NIGERIA 12.37 SOUTH AFRICA 15.98 COTE d’IVORE 7.40 NIGERIA 14.78 KENYA 5.36 ANGOLA 8.80 SWAZILAND 5.34 LIBYAN ARAB JAMAHIRIYA 8.75 NAMIBIA 3.47 MOROCCO 4.30 GHANA 3.42 EGYPT 4.07 ALGERIA 3.36 TUNISIA 3.87 TUNISIA 3.18 CONGO 2.36 ZIMBABWE 3.04 COTE d’IVOIRE 2.09 SOURCE: UNCTAD, 2008c # COUNTRIES IN RED APPEAR ON BOTH LISTS AND ARE COASTAL Exports to Africa dominated by coastal economies (8 out of 10) representing all regions 7 of the top 10 exporters to the rest of the world are oil producers; 4 countries accounting for 50% TOP TEN IMPORTERS TO AFRICA and THE REST OF THE WORLD IMPORTS FROM AFRICA COUNTRY SHARE OF TOTAL INTRAREGIONAL EXPORTS IMPORTS FROM THE REST OF THE WORLD COUNTRY SHARE OF TOTAL AFRICAN EXPORTS TO THE REST OF THE WORLD SOUTH AFRICA 9.80 SOUTH AFRICA 25.40 BOTSWANA 8.23 MOROCCO 9.22 NAMIBIA 6.59 ALGERIA 9.18 COTE d’IVOIRE 4.91 EGYPT 8.00 SWAZILAND 4.70 NIGERIA 7.73 ZAMBIA 4.58 TUNISIA 6.00 ZIMBABWE 4.53 LIBYA 3.49 LESOTHO 3.45 SUDAN 2.92 NIGERIA 3.45 LIBERIA 2.78 D R CONGO 3.24 GHANA 2.42 SOURCE: UNCTAD, 2008c # COUNTRIES IN RED APPEAR ARE COASTAL 5 of the top 10 importers from Africa are land-linked South Africa, Nigeria, Cote d’Ivoire, Namibia, Zimbabwe, Swaziland South Africa, Nigeria, Algeria, Libya, Morocco, Egypt, Tunisia dominate trade with rest of the world AFRICA is largely dependent on trade for its economic development Intra-regional trade International trade Africa’s trade is dominated by coastal economies in all the 4 regions of the East, West, North and South That trade is largely seaborne and moves through its ports (91%) The development of the land-locked countries and their access to international markets are dependent on the performance of the network of maritime transport and logistics corridors, including ports and ships Transport, in this case maritime transport and logistics become an essential and strategic area of economic consideration in that context, the development of the maritime transport infrastructure becomes a key enabler and catalyst for the competitiveness and development of Africa’s economy DEVELOPMENT CORRIDORS AND SDIs IN THE SADC REGION Showing the Current and Potential Regional Corridor Traffic Flows Current / Medium Term Potential in million tonnes per annum, year 2002 "A Kis angani "A Mbandak a "A "A Librev illeGabo n Port G ent il Great Lakes Region Import Export Vols 1.6 / 2.4 mtpa "A Kenya "A Nairobi Rw and a" A Kigali "A Bujum bura Co ng o Braz zaville "A"A Kins hasa "A Point e N oire Dem ocrat ic R ep ub lic Bu rund i of C ong o "A Matadi LOBITO Dev. Corridor 0 / 1.0 mtpa "A "A Kigom a "A Kananga Kahem ba "A Luanda "A "A "A Dodoma Tanzania Mombasa Lake Tanganyika Transport, Mpulungu Dar es Salaam "A 0.1 / 0.3 mtpa Malanje "A Ang ola Zambia Import/Export plus Transit 1.6 / 4.0 mtpa Zimbabwe Import Export plus Transit 4.0 / 8mtpa "A Benguela "A Namibe"A "A LilongweA " Zamb ia Alternative road route from Zambia Nacala "A "A Lus aka "A Liv ingst one Botswana Inports Exports Plus Transit 1.5 / 2.0 mtpa "A Harare Mozam bique Zim bab we Windhoek "A "A Beira "A Bulaw ay o Nam ib ia "A Walv is Bay TAZARA Dev. Corr. 0.5 / 1.5 mtpa Malawi Huambo Menongue "A Mtw ara Lum umbashi NACALA Dev. Corr. "A Toamas ina "A Ant ananariv o 0.3 / 0.8 mtpa Mad agascar Bo tswana "A Toliara Gaborone "A Pret oria "A "A "A "A Johannes burg Mbabane Walvis Bay Dev. Corridor 2.0 / 3.0 mtpa Map uto BEIRA Dev. Corridor 2.0 / 5.0 mtpa Swaziland Kim berley "A "A "A Maseru Bloem font ein Coast-to-Coast Corridor 0.2 / 1.0 mtpa Sout h A frica Leso tho "A Cape T ow "A n "A "A Durban Eas t London Port Eliz abet h MAPUTO Dev. Corridor 3.0 / 6.0 mtpa Africa is the only world region with no merchant tonnage under its control (registry) to handle her coastal intra-regional and extra-territorial seaborne trade Africa imports transport and logistics services with every import - export activity • No tax and tonnage related benefits, hence skewed balance of trade Decimation of maritime services expertise (sea-based and ashore) and competitiveness Lost opportunities for possible investment in shipping by Africans Vulnerability to foreign geo-political and geo-economic pressures Undermines the establishment of viable coastal industry to complement the land and aviation national transport infrastructure and services Loss of opportunities for domestic industrial development and job creation Weaker position in coordinating intra-regional African coastal trade strategies Weakening of the capacity of countries and governments to govern their ocean territories and provide safety and security WAY FORWARD - AFRICA’S MARITIME DEVELOPMENT - PUBLIC MARITIME SECTOR CLUSTER INTEREST PERSPECTIVE MARITIME SUPPLY SAFETY OF LIFE, SAMSA STRATEGIC GOALS CHAIN SECURITY PROPERTY, CLIMATE & ENVIRONMENT TERRITORIAL INTEGRITY INCLUDING PR. EDWARD GOAL 2: Promote South Africa’s maritime industry/economy development WAY FORWARD AND RECOMMENDATIONS ISLANDS & ANTARCTICA Promotion of Maritime BBBEE and industry transformation INDUSTRIAL PERSPECTIVE TRANSPORTATION Promotion of maritime awareness, maritime industry skills capacity and creation of jobs SHIP & BOAT BUILDING SHIP REPAIRS/ CONVERSION EXPLORATION PRODUCTION OFFSHORE ENERGY & MINING LOCAL/REGIONAL COASTAL SHIPPING & LOGISTICS MARITIME MULTIMODAL CORRIDOR MID & DOWNSTREAM PERSPECTIVE INTERNATIONAL SHIPPING & LOGISTICS SHIP REGISTRY PORTS & HARBOURS COMMERCIAL SERVICES SHIPPING/CARGO OPERATIONS & LOGISTICS LEGAL,BANKING , AUDITING, ASSURANCE ENGINEERING & TECHNOLOGY SERVICES BUSINESS CONSULTING SERVICES RESOURCES PERSPECTIVE OIL & GAS RENEWABLE ENERGY MINING FISHING Maritime Cluster Governance & Coordination SKILLS TRAINING RESEARCH & INNOVATION PORT, COASTAL & MARITIME ADMINISTRATION TOURISM AND LEISURE PERSPECTIVE MARINE TOURISM SPORTS & RECREATION LEISURE Maritime Subsector & Industries Shipping, Ports & Maritime Corridor Logistics Marine Tourism [incl. Leisure, Sport & Inland Waterways] Fishing Resources [incl. Subsistence & Marine Habitat] Off-shore Resources Industry [incl. Oil & Gas and Minerals] Security & Defence Commercial Services • Seafaring services • Shore-based services incl. Agency, Legal, Projects, Finance, Insurance, Real estate, Consulting, Marketing, Corporate services • Leisure • Sports & Recreation • Marine Tourism • Fishing – seafaring & catching • Offshore operations • Shore based activities incl. Consulting Industrial [Manufacturing] • Vessel building, repairs & maintenance • Ship modifications & refurbishments • Ship recycling • Port & ship equipment & component manufacturing • Boat building repairs & maintenance • Equipment & component manufacturing • Fishing vessel construction, repairs & maintenance • Fish catching and processing • Offshore vessel repairs, maintenance & construction Military Industrial Complex • Technology Centre • Weapons, sensor, radio systems, etc • Vessel construction, maintenance, repairs Transportation [Logistics] • International Shipping • Coastal Shipping • Regional Shipping • Port Marine • Rail/Road corridor connectivity • Cruises Ships • Fishing boats operations • Crude supply logistics • Offshore support • Diamond & Minerals • Naval ship operations • Naval aircraft operations • Port cargo facilities development & equipment • Ship building & Repairs Yards • Ships & harbour craft • Intermodal corridors & hubs development • Cruise/Passenger facilities •Jetties • Aids to navigation • Boat Building and Launch sites • Waterfront Real Estate • Yards • Processing plants • Recapitalised subsistence sector • Shore based facilities • Offshore Vessels • Offshore facilities • Renewable energy • Dockyard • Air surveillance & Lift • Radar & Satellite Installations • Simulators • Maritime, Port and Coastal Admin, incl • Safety &Security • Environment and Climate Change • Spatial use • Coastal & Inland boating regulation, incl. • Safety • Construction •Fishing sector Regulation • Safety & Security • Environment • Economic activities Marine Oil & Gas sector regulation • Safety & Security • Environment Naval Doctrine & Policy Framework • National Defence • Search and Rescue • Disaster Management Infrastructure, Construction, Technology INVESTMENT OPPORTUNITIES SOUTH AFRICAN MARITIME TRAFFIC (1735 SHIPS) Public Interests # Climate Change • Pleasure boats 3,000 km coastline 8 established commercial ports ADDRESSING THE CHALLENGES - INITIATIVES Other Challenges raised by the study are the following and SAMSA had already undertaken the initiatives (in italics) which respond to some of the challenges: The quality of schools and the teaching human capital employed are generally less than adequate • SAMSA has partnered with the Eastern Cape and KwaZulu Natal Provincial Governments to create awareness about maritime careers and set up a network of maritime high schools in port cities. The initiatives is being extended to the Northern Cape and Gauteng. The initial phase (2011/2012) included strengthening the existing maritime high schools (Western Cape and KwaZulu Natal), partnering with maths and science focussed schools, and sponsoring scholars. Insufficient infrastructure and skills capacity for skills development • SAMSA has intervened by partnering with and assisting the two universities of technology offering seafaring maritime studies by conducting maritime career awareness campaigns, offering bursaries, topping up salaries for the lecturers in order to attract quality teaching staff; • SAMSA is purchasing a training simulator software for navigation studies in partnership with TETA;’ • SAMSA has made an offer to take over the Agulhas ship and convert into a floating classroom; and • SAMSA plans on establishing a Maritime Academy/Institute by 2014 catering for the continent as well. Lack of industry transformation and shortage of training berths for cadets. • SAMSA has commissioned two crewing companies to source cadetship berths on the international fleet for 130 students within 2011/2012, 480 next year, to reach 1200 /1600 per annum; • SAMSA has a workplace exposure scheme for 20 maritime graduates per annum; and • SAMSA has launched Women in Maritime scheme and Sisters of the Sea women’s mentorship SEAFARERS SKILLS DEVELOPMENT AND JOBS FUTURE OUTLOOK: MARITIME • The SAMSA Maritime Skills Study is revealing the potential of the Maritime HRD Strategy and Plan to address the current critical shortage of skills, to protect current jobs and prepare for and provide a catalyst for the sector growth and development across the 5 Sub-Sector of the Maritime industry: Ports and Shipping Marine Resources Marine Tourism and Leisure Marine Manufacturing and Construction (including Technologies) Commercial Support and Business Services Public Interests (including Climate Change) • The requisite skills and jobs opportunities cut across the entire structure of the Maritime Sector: Maritime Transportation (including Ports and Logistics) Fishing Offshore (Oil and Gas, Seabed Mining and Renewable Energy) Marine Tourism, Leisure and Recreation Naval and Defence • The maritime sector has the potential to be the new growth curve of the South African economy. • Given the scarce skills and niche nature of international and domestic maritime sector, any amount of investment in the sector skills development programmes, coupled with optimal efficiencies makes maritime a business case in ROI in Human Capital Investment. A true TRANSFORMATION ! Shore based management Pipeline Shore based management Road Long-Haul Shipping Vessel Operations Ports & Coastal Administration SHIPPING TRANSPORT PORTS, MARINE SERVICES & COASTAL Maritime Logistics Hubs MARINE TECHNOLOGIES Vessel management Green Technologies, Crewing Services Marine Software, Ship/Cargo Agency Marine Traffic Management Customs Clearance Freight Forwarding Aquaculture FISHERIES, PHARMACEUTS / AQUACULTURE Secondary Cluster Hospitality & Entertainment OFF-SHORE ENERGY & MINING Cruising, Ferrying Yachting BOATING & CRUISING MARINE RESOURCES MANUFACTURING/ CONSTRUCTION MARINE & CIVIL ENGINEERING Vessel Repairs & Construction Sailing Swimming Diving Marine Activities SPORTS & RECREATION Adventure & Views Real Estate Eco-Marine Tourism LEISURE MARINE TOURISM BUSINESS SERVICES PUBLIC INTEREST BANKING & CONSULTING MARITIME REGULATORY & NAVAL DEFENSE Auditing Safety - Navigation, Environment, Property Marine Equipment Manufacturing Legal Services Environmental Management Observatories & Aquaria Technical & Business Consulting Maritime Corridors Financing Biotechnology, R&D, Waterfrnt & Cruise Terminals & Jetties Insurance Security, Defence, Customs Training and Education Governance, Regulatory, Compliance Research and Development (R&D) and Innovation SKILLS SHIPPING LOGISTICS Catching & Processing Oil and Gas Exploration & Production Renewable Energy [Wind, tides, Nuclear] SUBINDUSTRIESS SECTORR OPERATIONAL SUPPORT SERVICES Pharmaceutics Primary Cluster Minerals Mining SUBSECTOR SHIPPING & TRANSPORT Ocean, Tidal Inland Water Resources Management INDUSTRIES Short –Haul Shipping Off-Shore Ops, Ship to Shore Transfer, Diving Infrastructure Development & Maintenance Rail MARITIME LOGISTICS INFRASTR/RE Shore side Ops Marine, Aids to Navigation, SKILLS Ports SEAFARERS SKILLS DEVELOPMENT AND JOBS – SEAFARERS CASE STUDY The global shortage in seafarers presents an opportunity for becoming a labour supply nation to the global shipping transport industry, thereby creating jobs particularly for the youth in the underdeveloped parts of the country, including rural and township areas -----------------------------------------------------------------------------------------------------------------------------------------------Setting the Scene Over 80% of world trade is seaborne, handled by a fleet of over 50,000 merchant vessels; South Africa = 0 Ships The world fleet of over 50,000 employs about 1,4 million seafarers; South Africa = about 1,500 There are shortages of over 250,000 ie 34,000 officers and 224,000 ratings]; South Africa’s unemployed = 40% On board the 12,000 merchant ships visiting the South African ports annually, carrying about 240,000 seafarers who transport and handle our imports and exports (98% of total trade); South African port mariners = about 1,500 South Africa’s seaborne cargo constitutes a significant 3,5% of the global sea trade. South African transport = 0 Making the Case: Dilemma or Lack of Vision Applying the uneducated rules of equitable participation, South Africa should be claiming a share of 30,000 45,000 seafaring jobs in international shipping [1 seafaring job has a multiplier factor of 8 to 10 jobs ashore]. However South Africa needs to be training about 3,000 to 4,500 seafarers annually to reach the target, however, with no coherent Human Resource Development Strategy, Programme and Plan to capture a share of those jobs Philippines will increase their number from the current 250,000 seafarers and unemployment in South Africa will persist. SEAFARERS SKILLS DEVELOPMENT AND JOBS – SEAFARERS CASE STUDY • The global shortage in seafarers presents an opportunity for becoming a labour supply nation to the global shipping transport industry, which in addition to creating jobs for citizens has its strategic advantages to the nation’s geo-economic and geo-strategic position world-wide. • The Findings that the opportunity of South Africa being favoured globally due to being an English speaking multi cultural nation, with high standards in seafarer training, suggest that South Africa possesses basic characteristics that could make it globally competitive in providing quality seafarers. • In order for the country to position itself for these opportunities, a more collaborative strategic engagement within government, with the private sector and civil society needs to ensue, enabling: The development of a National Policy and Programmes on Seafarer Development, addressing: the need to position South Africa as a major supplier of high quality sea workers and expertise; the need for sustainable funding and incentive scheme to be adopted; and the capacity to grow the numbers and sustain a world-class Seafarer Centre of Excellence [SAMSA considers its funding of the current Cadetship Program Initiative as seed funding]. The National Seafarer Training system will realise its full potential when: a dedicated Maritime Institute is set up, with faculties anchored within the existing FET and University of Technology systems; South Africa grows a critical mass of ships on Ship Register to enable provision of training berths and jobs for the seafarers; and The current available capacity within government and SOE-controlled fleet vessels is used exclusively to provide the required training support to the institutions and industry. CONCLUSION • SAMSA realises the potential of the international and domestic maritime industry in assisting with the creation of employment that is sustainable, of high quality and attracting foreign earnings, eliminating poverty and contributing to economic growth. • The projected seafarer numbers, only represent the South African quota of the total international seafarer market, with a potential to take a bigger share of both the seafarers and non-seafaring. • The current persistent unemployment levels require step change...for 17 years we have been doing the same old thing, yet expecting different outcomes. • The maritime industry as a whole holds currently and potentially hundreds of thousands of jobs: Fisheries employ about 200,000 people yet receives little skills development support; Boat and Ship building and repairs, including offshore structures create hundreds of jobs, with little skills development support; and Seafaring has the potential to create thousands of jobs, yet there is no support... • SAMSA considers this forum - the Human Resource Development Secretariat and its Technical Working Group as key partners and enablers in the maritime skills development and job creation efforts. • SAMSA is organising a Maritime Skills Development Summit at which the Skills Study will be launched and the industry with skills development policy makers and providers engaging in a process to develop the long term Maritime Skills Development Strategy, Programme and Plans. You are invited! GALLERY GALLERY Satellite AIS - over 8000 vessels Courtesy: Marine Data Solutions GALLERY SAR Region SA land mass SA ‘sealand’ SA Search and Rescue Region = 1,220m.sq.km = 3,432m sq.km = 27.7m sq.km. SAMSA Thanks You !!!