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SAMSA Strategy and APP 2016-17

April 2016

Presentation to Parliamentary Committee on Transport

Content

SAMSA mandate

Organisation structure

Alignment of Goals with NDP, MTSF, SONA

Strategic objectives and goals

Initiatives for Radical Economic

Transformation

APP initiatives and budget

Key strategic challenges and mitigation

actions

2

In 1996 government reviewed the National Transport Policy (NTP) in line with aspirations of the new dispensation

The NTP states SA’s Maritime Transport mission as largely to:

• Ensure safety of life and property at sea and prevention of pollution by ships• Develop maritime awareness in South Africa• Ensure fair labour practices in the maritime industry• Contribute to the release of the full potential of the maritime industry• Assist in fostering an economic environment for the Maritime Transport

Industry to compete with at equal footing with other nations

A Review of SAMSA’s Mandate)

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The NTP further also sets strategic objectives of the Maritime Transport Policy, which include:

To facilitate and enhance the expansion of international trade and tourism in general, and

exports in particular;

To promote the development of an efficient and productive South African maritime industry

capable of competing on international markets;

To maintain control over maritime services within a well-defined regulatory framework that

is flexible enough to cater for changing needs and circumstances and to ensure orderly,

safe and reliable maritime transport services; and

To promote international relations with other countries and international organisations

involved in maritime activities.


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It is as a consequence of the NTP that SAMSA was established in terms of section

3 of the South African Maritime Safety Authority Act, 1998.

SAMSA’s Act provides that the mandates of the entity will be derived severally

from;

Objectives: 1) Safety, 2) Environment 3) Promotion

Directives: SAMSA is to act upon ministerial directives as articulated in the Act

Delegated Functions: Such as defined under Maritime Operation Phakisa,

SONA 9-Point Plan and NDP requirements

Legal prescripts: Assigned responsibilities to SAMSA


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Objective 1: Safety of Life and Property at Sea (SOLAS)

Derived from the SOLAS Convention as amended, comprising of:

- Port State Control

- Flag State Enforcement

- Enforcement of United Nations on the Law of the Sea (UNCLOS)

- Implementation of Standards of Training Certification and Watch-keeping

(STCW) Convection

- Provide 24/7/365 Maritime Rescue Coordination Centre capability

Amendments cover

- Regulation of International Ship and Port Facility Security (ISPS) Code and

Anti Piracy, through satellite tracking technology in:

Long Range Identity Tracking (LRIT)

Automatic Identification System (AIS)


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Objective 2: Prevention and combat pollution of the marine environment by

ships

Derived from the International Convention for the Prevention of Pollution from

Ships - MARPOL Convention as amended

- Prevention of pollution by oil & oily water from ships

- Control of pollution by noxious liquid substances in bulk

- Prevention of pollution by harmful substances carried by sea in packaged

form

- Prevention of pollution by sewage from ships

- Prevention of pollution by garbage from ships

Amendments cover

- Prevention of air pollution from ships


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Objective 3: Promotion of South Africa’s Maritime Interests

With expectation that the Authority is required to support or actively encourage and

further the progress of SA’s maritime interest. This entails the authority to play the

role of :

- Facilitation: Project Manage maritime initiatives

- Support: State capacity and capability to leverage the endowed maritime

asset

- Promotion: Operation Phakisa and maritime development initiatives

- Leadership: Driving the transformation and empowerment agenda


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Strategic areas of promoting South Africa’s Maritime Interests

Maritime Zones Governance and Administration: Ensuring order at sea

Maritime Security: Protection and security of the borders and of trade

Maritime Trade and Development: Maritime trade services and industry

development

Maritime Capacity: Maritime skills, jobs research education and awareness

Maritime Diplomacy: International Relations and Regional Cooperation


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Additional Mandates by directive

The MRCC operates a 24/7 service with the focus primarily on:

Monitor coastal and offshore activities

Manage maritime communication system(s) for SAR

Regulate coastal and inland waterways aids to navigation including vessel traffic services

MARITIME SEARCH RESCUE AND DOMAIN AWARENESS

SMALL VESSELS (BOATING)

Administration of the Merchant shipping (National Small Vessel Safety) Regulation, 2007, as amended (the Regulations). The Regulations extends SAMSA’s Core mandate to include inland waterways (only waterways accessible to the public) within the Republic. That is to ensure boating safety on our waters.

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SAMSA – Organisational Structure

Our Vision & Mission

Seafarer training and examination. Seafarer and stevedore safety. Boating safety . Maritime governance and regulatorydevelopment.

OUR CORE BUSINESS Maritime Sea Watch & Response. Safe operation and compliance of ships. Prevention of pollution from ships . Implementation of international maritime

conventions acceded to by government. Development of SA’s Maritime sector .

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Our National Footprint

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National Government (National Priorities)

SONA 9 Point Plan-Oceans Economy (Operation Phakisa)

DoT StrategicGoals

SAMSA- Mandate Strategic Goals Strategic Objectives

An efficient, effective anddevelopment-oriented public service

Theme 2: Improved service delivery

Marine Protectionand governance Lab

Effective and efficient managementand support

Batho Pele Principles, PFMA Act, SkillsDevelopment Act, SAMSA Act, etc.

A highly competent Maritime Authority

Excellence in service delivery

To improve the level of organisational resourcesand capabilities from Level 3 to level 5 by 2020.To improve the quality of SAMSA servicesand products to our stakeholders from Good (3) to Excellent (5) by 2020.

All people in South Africaare and feel safe

Marine Protectionand governance Lab

A transport sector that is safe and secure

To ensure safety of life and property at sea

Administration of inland small vesselRegulations

Maritime security regulations in linewith the ISPS Code

Clean seas, safer people and property in South Africa’s maritime transportenvironment

To reduce the incidence of marine casualtiesin South Africa’s maritime transportation from 2015 and 2020

To contribute to the mitigation of maritime security risks over the years 2015 and 2020

Alignment of SAMSA’s Strategic Goals with National Development Plan and MTSF

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National Government (National Priorities)

SONA 9 Point Plan-Oceans Economy (Operation Phakisa)

DoT StrategicGoals

SAMSA- Mandate Strategic Goals Strategic Objectives

Create a better South Africaand contribute to a better and saferAfrica and the World.

Marine Protection and Governance Lab

Effective and efficient managementand support

To promote the Republic’s MaritimeInterests

An orderly and well governed maritimesector

To strengthen the governance of South Africa'smaritime domain from a developing (2) levelto an optimised status (5) from 2015 and 2020

Environmental assets and naturalresources that are well protectedand continually enhanced

Marine Protection and Governance Lab

Increase contribution of transportto environmental protection

To prevent and combat pollutionfrom ships in the marine environment

Clean seas, safer lives and propertyin South Africa’s marine transportenvironment

To reduce the rate of marine pollution by shipsin South African waters from 2015 to 2020

A skilled and capable workforceto support an inclusive growth path.Theme 1: Radical economicTransformation

Marine Transportand Manufacturing Lab

Increased contribution to Job Creation

To promote the Republic’s MaritimeInterests

A competent, supported and globallycompetitive South African seafarer

To improve the quality of South Africa’s Maritime Education and Training System by 2020

An efficient, competitive and responsiveeconomic infrastructure network

Offshore Oil and Gas Lab An efficient, competitive and responsiveeconomic infrastructure network

- A developing, transformingand sustainable job creating maritimesector

To support and facilitate the achievementof national oceans economy developmentprogramme aspirations by 2020

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Initiatives for Radical Economic Transformation

• Promote meaningful participation of Black Youth and Women Entrepreneurs in South Africa’s Maritime Sector

• Accreditation of Technical Vocational Education and Training (TVET) Curriculum and examination

• SAMSA Maritime Skills Development Support initiative ‐ National Cadetship Programme

• Develop and Implement a Long Term Financial Sustainability Strategy – SAMSA Long term funding initiatives

• Safe boating – Increase the number of surveyed inland boats and licensed skippers operating in our waters and stricter observance of boating safety best practices

• Safe seafaring, stevedoring and ship repair workers ‐ Implementation of approved STCW‐Fishing (STCW‐F) including improved compliance with Occupational Health and Safety requirements for employees in the maritime sector (Stevedores and Ship repair workers)

• National, regional and international marketing and promotion of the South African ship registry

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Initiatives for Radical Economic Transformation

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Initiatives for Radical Economic Transformation - Operation Phakisa

Offshore Oil and Gas Exploration: D2 Develop capability for sub surface research and data gatheringOffshore Oil and Gas Exploration: B1 – Joint industry‐government emergency response drills. SAMSA, in line with its mandate of prevention of pollution by ships, and on behalf of DOT, has been a key participant in this initiative. MTM: I15_2 Centralised government fleet management through the Ship Management Special Project ‐ DAFF vessels and SA AgulhasMTM: I18 Support local registry of vessels through incentives and encouragement of using SA Flagged ships for cargo and costal operations (based on UNCTAD and African Maritime Charter Guidelines)Maritime Protection and Governance: I5 Enhance and coordinate the Enforcement ProgrammeMaritime Protection and Governance: I6 Establishing an Ocean & Coastal Information Management System and Extending oceans and coasts earth observation capabilities.

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1. A highly competent maritime authority by 2020

2. Excellence in service delivery by 2020

3. Clean Seas, Safe People and Property in South Africa’s maritime transport environment

by 2020

4. A Maritime sector that is rapidly developing, transforming and creating sustainable jobs

for South Africans by 2020

5. A competent, supported and globally competitive South African Seafarer by 2020

STRATEGIC OUTCOME ORIENTED GOALS

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Expected Outcomes

A Highly skilled and competent SAMSA staff

An optimally resourced (financial and infrastructure) maritime authority to deliver on its mandateAn optimally mandated maritime authority to deliver on its mandate

Best practice corporate governance

Effective and efficient supply chain management

Aligned ICT systems

Long Term Financial Sustainability

To improve the level of organisational resources and capabilities from Level 3 to level 5 by 2020.

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Strategic Initiative

Develop and Implement a Long Term Financial Sustainability Strategy – SAMSA Long term funding initiatives (An on going non budget item)Implementation of financial turnaround strategy

Develop and implement a SAMSA Knowledge Management System

Assess and continually mature and improve management systems

EstimatedBudget

R 21 476 988

The purpose of this programme is to develop adequate and suitable resources,capabilities and core competencies to aid the achievement of our mandate

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Expected Outcomes

Independent Recognition of the quality of SAMSA’s Service Delivery

Excellent Stakeholder Satisfaction Rating

Quality Management Accreditation

To improve the quality of SAMSA services and products to our stakeholders from Good (3) to Excellent (5) by 2020.

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Develop and Implement a SAMSA Service Charter

To improve the quality and efficiency of service delivery

Develop and implement an Integrated Management System

Estimated Budget

R 14 317 992

The purpose of this programme is to Service Delivery Excellence Framework will focus on leadership, corporate governance, processes and delivering sustainable stakeholder results.

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Expected Outcomes

A reduced risk of shipping incidents and accidents

A reduced risk of boating incidents and accidents

A reduced risk of fishing incidents and accidents

A reduced risk of loss of life incidents and accidents

A reduced risk of maritime security incidents

A well regulated and governed maritime environment

1.To reduce the incidence of marine casualties in South African waters over the years 2015 and 2020

2. To contribute to the mitigation of maritime security risks over the years 2015 and 2020

3. To reduce the incidence and impact of marine pollution by vessels in South African waters over the years 2015 to 2020

4.To strengthen governance of South Africa's maritime domain from a developing (2) level to a mature status (5) by 2020

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Safety awareness campaigns (safe fishing, safe shipping, boating and safe navigation interventions and seminars)

Fishing safety promotion (support the Operation Phakisa project for the recapitalisation of fishing vessels) Improve safety standards and vessel inspection rates (Port, Coastal and Flag state responsibilities)Implement up to date legislation and regulationsMaritime incident investigation and reviewsSafe Fishing – Improved fishing safety practices in collaboration with the National Fishing Forum

Maritime search and rescue operations – enhanced ability to coordinate responses to calls of distress

Safe Shipping – Adherence to safety standards, practices and international conventions in our waters (foreign and national flagged vessels). Port State Performance Improvement Initiative (including increasing the number of SAMSA surveyors)South African Safe Sea Net Project: Operation Phakisa Maritime Protection and Governance-Establishing an Ocean & Costal Information Management System and Extending oceans and coast earth observation capabilitiesSafe boating – Increase the number of surveyed inland boats and licensed skippers operating in our waters and stricter observance of boating safety best practices.

Safe seafaring, stevedoring and ship repair workers - Implementation of approved STCW-Fishing (STCW-F) including improved compliance with Occupational Health and Safety requirements for employees in the maritime sector (Stevedores and Ship repair workers).Clean ships and marine environments

Estimated Budget

R 230 678 760

The programme is aimed at ensuring that strict observance of safe maritime practices by seafarers, stevedores and inland waterway skippers, compliance and safe operation of ships, the safe performance of commercial activities at sea and the safety of cargoes being transported by vessels and related equipment.

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Increase South Africa’s maritime domain awareness ability and the effectivemanagement thereof and domesticate SOLAS Chapter V Regulation 4:Navigational Warnings, Regulation 12: Vessel traffic services and Regulation 13:Establishment and operation of aids to navigation (both coastal and on inlandwaterways).

Enhanced Enforcement Programme : Operation Phakisa Maritime Protection and Governance –Enhance and coordinate the Enforcement ProgrammeStrengthening Integrated Maritime Security Governance through participationat all national maritime security forums

Implement amended maritime security regulationsManage Long Range Identification and Tracking (LRIT) technologyIntegrated maritime security technology capability development initiatives (Border Management Agency)

Effective management of pre arrival notifications by ships when entering South African waters.

Estimated Budget

R 14 317 992

The programme concerned with the prevention of damage and disturbance to the South African and global maritime supply chain network, trade security, elimination of sabotage in the sea environment, acts of piracy, illegal exploitation of South African sea based resources, vessel security

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Strategic Initiative to implement the ratified annexure IV and VI of MARPOL.

Develop and implement strategies to respond to marine pollution incidents (The National Maritime Oil Spill Contingency Plan)Maritime pollution and environmental protection awareness Strategic Initiative

Develop and implement a maritime pollution risk management plan

Develop and communicate marine pollution regulations and procedures for the industry.SAMSA’s strategic response to the impacts of climate change on the maritime environment.Strategic Initiative to reduce marine pollution and protect the marine environment

Estimated Budget

R 59 658 300

The programme is aimed at developing and enforcing regulations to avert the introduction of invasivespecies into the maritime environment, stop unauthorised ocean dumping of hazardous substances and prevent oil and chemical spills from vessels.

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Strategic Initiative Provide technical support to the Oceans economy development initiatives (Marine Protection and Governance Lab, MTM lab, Oil and Gas Lab)

Provide technical support to DoT in the drafting and implementation of new/improved National Maritime Transport Policy, legislation, strategies and regulations

Implementation of Mandatory IMO Member State Audit (MIMSA) readiness projectProvide technical support to the DoT on entering into and implementing Bilateral and Multilateral Maritime agreements MTM: I15_2 Centralised government fleet management through the Ship Management Special Project- DAFF vessels and SA Agulhas

R 14 317 992Estimated Budget

The programme aims at strengthening maritime governance with a focus on collaborative stakeholder participation and the sharing of responsibilities and actions at national, regional and international perspectives of governance to ensure effective implementation of the South African maritime agenda

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Expected Outcomes

Effectively supported Job creation initiatives in the Maritime sector through partnerships with international shipping lines and crewing agenciesProvide technical and thought leadership in the development of South Africa’s

A globally competitive and attractive South African Ship registry

Increased number of merchant ships registered on the South African Ship Register

A demographically and structurally transformed maritime sector in support of the DoT’s Transport BBBEE Council plansRealised aspirations of the National Oceans Economic Development Programme (Operation Phakisa) in the areas of Offshore Oil and Gas, Marine Protection and Governance,Marine Transport and Manufacturing subGrowth and development of the broader maritime sector (across the maritime transport value chain)

1.To support and facilitate the achievement of the national oceans economy development programme (Operation Phakisa) aspirations by 2020

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Strategic Initiative South African Ship Registry development and promotion: Operation Phakisa MTM 18 – Support local registry of vessels through incentives and encouragement of using SA flagged ships for cargo and coastal operations

SAMSA Maritime Skills Development Support initiative including the National Cadetship Programme

Promote meaningful participation of Black Youth and Women Entrepreneurs in South Africa’s Maritime Sector (Participatory non budget item)Maritime sector engagements (participatory non budget items)

Rollout of TVET Artisanal training at 12 TVETs nation wide (Participatory non budget items)

Estimated Budget R 14 317 992

This programme will focus on promoting and facilitating the economic contribution of maritime to GDP, the development and demographic and structural transformation of the sector. It should enable effective leveraging of economic benefits sought from the maritime industry towards achieving South Africa’s socio economic development priorities at a local, national, regionaland global level.

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Expected Outcomes

SAMSA’s Quality Management System as prescribed under STCW I/8 requirements

Increased number of agreements and maintain existing STCW Agreements with other Administrations

A world class seafarer welfare programme

South African Seafarers qualifications are accepted in all maritime jurisdictions across the globe

Maintain IMO Whitelist Status

Increased South African Seafarers and ratings

1. To improve the quality of South Africa’s Maritime Education and Training (MET) System by 2020

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Strategic Initiative Comprehensive review and implementation of improvements on the provisionof standardised education, training and examination systems

Seafarer Welfare Development

STCW F Training development and implementation (New convention required)

Accreditation of Technical Vocational Education and Training (TVET)

Maintained IMO Whitelist Status

Estimated Budget R 28 635 984

This programme addresses important requirements of developing and enhancing Seafarer training and welfare. The standardisation of seafarer examination systems is an important initiative that requires immediate attention to ensure that stateholders place reliance on our ability to produce world-class seafarers

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Budget 2016-17

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Programme Budget

Organisational Capability Development Programme R 21 476 988

Service Delivery Excellence Programme R 14 317 992

Maritime Safety Programme R 230 678 760

Maritime Security Programme R 14 317 992

Maritime Environmental Protection and Climate Change Programme

R 59 658 300

Maritime Governance Programme R 14 317 992Maritime Sector Development Programme R 14 317 992Seafarer Development and Welfare Programme R 28 635 984Total Budget R397 722 000

Highlight of key successes from 2015-16

3 Cape Size vessels (Oliphant, Orchid, Enterprise)have been added to the

Ship Register after more than 30 years of non activity since1984

3 additional merchant vessels (a Bulk Carrier by Vuka Marine, Bulk Carrier

by Vuka Marine and an Oil Tanker by Grindrod) added to Ship Register

SAMSA is winner of the15th Annual Oliver Empowerment Awards and

recognised as ‘LEGEND OF EMPOWERMENT AND TRANSFORMATION’.

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Highlight of key successes from 2015-16

As at end of Quarter 3 SAMSA had saved 162 lives through the

coordination actions of the MRCC and the support of other South Africans

Search and Rescue (SASAR) role players.

As at end of Quarter 3 SAMSA had processed 8 266 Pre Arrival

Notifications with Zero Maritime security incidents attributable to

inadequate processing of pre arrival notifications

National Cadetship Programme has trained and continues to track

progress of 513 cadets since inception in 2011 to 2015 and being

transferred to SAIMI

13 World Maritime University students were given workplace

exposure at SAMSA in 2015 and another 5 expected in 2016

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Lowlights and challenges from 2015-16

From November 2015 to March 2016 SAMSA embarked on a turnaround

austerity cost saving exercise to manage its negative cash flow situation

that originates from an increasing operating cost base without a

corresponding tariff adjustment since 2009

AS at end of Quarter 3 SAMSA assisted in 54 medical advice incidents by

connecting vessels to local Tele medical Services (compared to100

incidents for the whole of 2014-15)

81 casualty incidents were recorded and 8 fatalities mainly from small

vessels and fishing vessels by end of Quarter 3 (compared to 22

recorded fatalities for 2014-15)36

Strategic challenges and mitigation actions to the Strategic Plan 2016-17

A funding model that is not fit for our purpose

Mitigation: The modelling of a Financial Self Sufficiency framework has

been facilitated through DoT, NT and SAMSA however process has been

extremely slow.

Non adjustment of tariff effectively since 2009 (only CPI of 5.1% late in the

year in 2013) and the consequence is a reducing revenue stream that will

not enable SAMSA to deliver effectively on its mandates

Mitigation: Tariff adjustment for 40% submitted to DoT and National

Treasury for approval

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Strategic challenges and mitigation actions to the Strategic Plan 2016-17

SA Agulhas is a necessary trading and training platform required under the

STCW regime for seafarer training and its non availability for this purpose

seriously undermines the country’s ability to create berths to meet

Operation Phakisa targets

Mitigation: Proposal presented to DoT and DHET to ensure that the

vessel can be financially accounted for through SAIMI

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Financial Performance Summary Report

2015-2016

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Financial Performance

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Notes

1. Revenue stagnant due to non‐adjustment of tariffs;

2. Increase in revenue mainly dueto contributions from partnersfor skills developmentprogrammes and managementfees for additional services beingprovided;

3. Expenditure decrease due to costcontainment measures, furthercost cuts now impactingnegatively on service delivery;

4. Deficit for 2016 does not includeprovisions and will increase tomore than R50 million whenprovisions are finalized.

2015/16 2014/15 R'000 R'000

Projected Actual

Revenue 316 681

305 790

Investment income 213 138

Other income ‐ 598

Gross Income 316 895

306 526

Operating expenses 354 107

387 996

Net (deficit) for the year ‐37 212

‐81 470

Top Costs

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SALARY COSTS44%

RENT9%

SA AGULHAS EXPENDITURE9%

LOCAL TRAVEL6%

DEPRECIATION4%

LRIT/AIS4%

COMMISSION -SAMSA LEVIES

2%

PROJECTS2%

OVERSEAS TRAVEL2%

CONSULTING FEES1%

OTHER17%

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Infrastructure Investment

Infrastructure investment remains very low due to outdated tariff structure;

Non‐renewal of old infrastructure affecting the service delivery capabilities of the organisation.

2015/16 2014/15 R'000 R'000

Capital expenditure 5 188 4 280

Tariff Update

• The status quo remains ‐ SAMSA has adjusted its tariffs only once since 2009;

• Approval of the proposed tariffs still pending from the Minister of Finance;

• SAMSA continues to use outdated funding structure while costs of running the business continues to increase.

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Thank You

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