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South Africas Oceans Economy : London Investment Seminar

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largest island on earth with oceans on all sides: total of 54 countries of which 39 (72%) are coastal or islands coastline of 31,000 km inland waterways of 300,000 square kilometers

seaborne trade volume 91% Trade dependent GDP (eg RSA: 58% of GDP comes from trade) Low Intra Continental Trade Substantial Resources both on land and offshore in particular Oil and Gas

Growth Market: Population to double by

2030 GDP to double between

2010 and 2020

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Maritime Activity along the African Coast

South Africas is strategic location for many trades (East - West, South South; North - South, even the last stop

before Antarctica)

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B. Understanding SAs Maritime Zones & Interests: The Extent of SAs reach

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National Transport Policy Context

Our Maritime Policy and Mandate rooted on the White Paper on National Transport

Vision vSupport Government Strategies for Economic and Social Development whilst being

Environmentally and Economically Sustainable

Maritime Policy Imperatives and Goals Articulated as follows: vDevelop Maritime Awareness vCreate and foster economic environment for the Maritime Transport to enable competition

with other nations

vContribute to the release of the full potential of the Maritime Industry vModernise SA Shipping Administration

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Growth in GDP and job creation potential of the oceans is driven by 9 main sectors

6%

4%

9%

4%

25%

4%

4%

1%

0% -

CAGR, %

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

0

7

4

0

54

-

2010

42-61

25-35

11-17

20-21

14-17

10-16

7-10

0.1-0.1

129-177

-

2033 Jobs, 000

15

90

0.4

162

-

30

19

0

316

-

2010

40-56

150-225

0.8-1.2

390-407

0.9-1.1

170-250

35-52

1.6-1.6

788-1,004

-

2033

CONTEXT

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Operation Phakisa Overview

Marine Transport and Manufacturing v Ship building, Ship Repair in particular offshore structures, Boat Building, Component Manufacturing v Shipping Transport Services, in particular the growth of South African Registered Ships v Other services associated with Shipping Transportation, eg bunkering services, ship to ship transfers, casualty

response, etc

v Port development and industrial zone adjacent to the port. Additional areas include

v Earth observation and satellite technology; v Scientific surveys to support Marine Spatial Planning; v Skills development in particular seafaring skills and capacity building. v Marine Research

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Summary of Maritime Transport and Manufacturing Lab

Infrastructure and operations Skills and capacity building Market growth

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

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 Specialisation 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

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)

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A B C

3-FEET PLAN

DOT is accountable to Presidency DOT is the implementer

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Key Investment for Marine Manufacturing

Ensure the Growth of SA Ship Register: At least 40% of SA Trade to be carried by SA Ships South Africa exports over 150 million tons of bulk cargoes and imports more than 20 million tonnes

of liquid cargoes. Further, there are more than 3 million tons of coastal cargoes and a potential of a t t ra c t i ng o r e c a rgoe s f r om l and t ran spo r t a t i o n t o s eabo rne t ran spo r t .

Ensure Marketing of SA Seafarers as well as other Maritime Skills: Potential for Foreign Capital E a r n i n g s

There is a need to actively market SA Maritime Skills. It would be ideal to have a Maritime Desk in s e l e c t e d S A M i s s i o n s a b r o a d

S h i p B u i l d i n g , S h i p R e p a i r a n d M a r i n e M a n u f a c t u r i n g SA Shipbuilding and Repair Capacity can largely supply the boating requirements by African

Countries. There is a need to position SA industries in the African Markets. All the Oil Producing nations in the continent have a big need for the ships that are currently being produced in the c o u n t r y ( t y p i c a l l y w o r k b o a t s , t u g s , e t c . )

SA is engaging in the f leet recapi ta l isat ion program for 700 f ish ing vessels

A s s o c i a t e d S h i p p i n g T r a n s p o r t A c t i v i t i e s SA is ideally positioned to provide halfway support activities, eg bunkering, crewing and crew change,

o f f s h o r e s h i p t o s h i p t r a n s f e r s

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Key Projects for Marine Transport Manufacturing

Project Quantified Requirements Level and Investment Required including comments

Recapitalization of 800 fishing vessels

800 fishing vessels of various types and sizes up to 130metres

Investment and partnership opportunities in vessel building

Transportation of SA Cargoes using SA Vessels

60 million tons annually of dry bulk and 5 million tons of liquid bulk

There are various vessels required to support the SA trade

Construction of 2 Emergency Towing Vessels

2 Vessels at an estimated cost of R1,2 billion

Investment opportunities in partnership with SA Development Bank

Employment of SA Seafarers

Provision of good quality seafarers at competitive seafarer wages

This is an opportunity to grow an alternative sourcing destination for seafarers

Create offshore logistics base

Construction of Logistics Base Partnership opportunities with our State Owned Energy Company.

Providing Cabotage Services

Shipping of coastal cargoes requires investment in SA Registered Ships and offshore support vessels

Investment on cabotage vessels

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Other investment Opportunities for Marine Transport Manufacturing

Project Quantified Requirements Level and Investment Required including comments

Offshore Ship to Ship Transfers

Investors to cultivate the market

Development funding, market research

Development of back of Port Infrastructure for logistics management

The IDZ provide for ideal manufacturing and value added services

Development funding and market research

Development of Small Harbours

SA has 12 small harbours to be refurbished and is rolling out a new small harbour development program

Development funding, Fishing and Tourism Infrastructure