Click to edit Master title style OPERATION PHAKISA Heading heading heading TRANSNET NATIONAL PORTS AUTHORITY (TNPA) B2B NETWORKING FORUM 28 JUNE 2016 Date HYATT REGENCY HOTEL, ROSEBANK
Contents Transnet National Ports Authority Operation Phakisa overview Private Sector Projects - Saldanha - Richards Bay - East London Refurbishment of Existing Ship Repair Facilities Supporting activities Concluding remarks 2
TNPA is an integral Operating Division of Transnet SOC Ltd Rail Ports Pipelines Supporting Owns & Operates 20,500 km track, including 1,500 km dedicated heavy haul Supports TFR with rolling stock maintenace Landlord to 8 commercial Ports around the South African coastline 16 cargo terminal operations across South African Ports 3 800 km of pipeline capacity for petroleum and gas products 3
South Africa s Commercial Ports : An integrated system of Complementary Regional Ports and Rail Corridors Port Rail Corridor Port Interconnect Cross-border Interconnect Durban Richards Bay EASTERN PORTS Saldanha Bay East London Cape Town WESTERN PORTS Mossel Bay Ngqura Port Elizabeth CENTRAL PORTS 4 TNPA owns and manages all commercial ports in the South African Port System
5 South Africa is uniquely positioned to leverage its infrastructure, location, expertise and existing downstream industry to service the Oil and Gas Industry
Operation Phakisa : GDP contribution and job creation in Marine Transport and Manufacturing (MTM) Sector Initial lab vision Baseline (2010) Target for interventions GDP Contribution Accelerate the GDP contribution of the sector ~R15bn Increase the contribution to GDP by R14-23bn by 2019 Job Creation Increase total employment ~15,000 jobs Increase the number of total jobs created by 40,000-50,000 jobs by 2019 6
The Lab recommended the following initiatives for Marine Transport and Manufacturing A Infrastructure and operations B Skills and capacity building C Market growth 1 Create supportive funding and revenue model 2 Establish purpose-built oil and gas port infrastructure by appointing Facility Operators Saldanha Bay 3 Align on Implementation of government policy 4 Prioritise Transnet and TNPA funding allocation towards marine manufacturing 5 Maintain and refurbish existing facilities 6 Unlock investment in new and existing port facilities 7 Implement Strategic Prioritised Project Richards Bay 8 Implement Strategic Prioritised Projects East London i. TNPA Transnet National Ports Authority ii.essa Employment Services of South Africa iii.tvet Technical and Vocational Education and Training 7 9 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 10 Create dedicated Occupational Teams for MTM Sector (professional, trades, operators and seafarers) 11 Establish trade RPL, CBMT or Centres of Specialisation in Saldanha Bay and Richards Bay 12 Train 18,172 learners as artisans, semiskilled workers and professionals over the next 5 years 13 Increase usage of ESSA system and targeted career awareness services as a high value recruitment tool for MTM 14 Increase capacity to develop skills for ~1,200 ratings and ~720 officers per year 2 5 7 8 iv. RPL Recognition of Prior Learning v. CBMT Competency-based Modular Training 15 Create and implement a public procurement and localisation programme 16 Develop a strategic marketing campaign and value proposition for target markets 17 Propose inclusion of preferential procurement clause in the African Maritime Charter 18 Support local registry of vessels through incentives and legislation of using SA-flagged ships for cargo and coastal operations (based on United Nations Conference on Trade and Development and African Maritime Charter guidelines) These initiatives require capital investment over the next 5 years and will provide supplier development opportunities to maintain and refurbish existing facilities.
Private Sector Projects Port of Saldanha Port of East London Port of Richards Bay 8
Flagship Port Development : Establish purpose-built oil and gas port infrastructure and appoint Facility Operators Saldanha Bay Establish a cluster of services to support the Oil and Gas industry off the West Coast of Africa and the SA Coast where existing/new exploration/production takes place; Initiative 2 comprises of the following projects at Saldanha : Offshore supply base (OSSB), Quay 294m, 6.9m draft; Rig repair facility (Berth 205), Quay 380m, 21m draft; and Ship repair facility (Mossgass Quay), Jetty 1000m, 8m draft. Construction and operation of these facilities will be offered to private operators through a concession arrangement: OSSB : Terminal and landside superstructure; Berth 205 for rig repair, including related landside superstructure investments; and Ship repair facility : Mossgas Quay. Required investment Investment: R13.2bn (estimated) 9
Saldanha Supply Base Facility Scope of Services and Land Footprint The scope of services are categorized to provide flexibility to the Operator to provide services responding to market demand, as well as to allow for time to develop the facility as a fully-functional offshore supply base; All Services can be rendered on land made available by TNPA or on land within the Saldanha Bay IDZ, adjacent to the port; Nature Category Timing for Availability of services to market Within the Site (Quay and Back of Quay) TNPA Land Compulsory Anchor Services Scheduled Construction Completion Date under the Terminal Operator Agreement Note: bidders to indicate schedule for construction (e.g. superstructure, warehouses etc.) in their Bid Response - this deadline become binding as the Scheduled Construction Completion Date under the Terminal Operator Agreement. Material Loading & Offloading Facilities Storage Facilities (including reefer points); Ancillary Bunkering & Fuel, Oil and Lubricants refill services Water refill Offices facilities Core Services As required by the market and mutually agreed with TNPA (*) or before if elected by the Terminal Operator Note: investment to respond to market demand or earlier Handling of Slops / Oil Waste Pipe Yard including coating facilities Non compulsory Authorised Services At Operations discretion to the extend in line with Bid Response and Terminal Operator Agreement and notified to TNPA Note: investment for the Authorised Services to be undertaken at bidders. Authorised = Approved Services selected by the Bidders and the Proposed Services approved by TNPA Approved Services Customs and Clearing Services, lease of a portion of the Quay for maintenance & repair services to vessels including the provision of a floating dock, accommodation, lease of a portion of the Quay for boat building Proposed Services: as proposed by Bidders in their Bid Responses and be approved by TNPA as part of evaluation process,
Saldanha Supply Base Berth 11 The Berth is being refurbished by TNPA and will be operational July 2016
The Saldanha Bay IDZ The Saldanha Port Developments are further supported through the Industrial Development Zone located adjacent to the port additional land is available in the IDZ for investors to provide services supporting port facilities. 12
Timeline : Port of Saldanha Phakisa Projects OSSB Facility : RFP to Market: April 2016 Bid Closing : October 2016 Operational Date : 2019 Mossgass & Berth 205 : EOI to Market: May 2016 EOI Closing Date : June 2016 RFP to Market : Sep 2016 Bid Closing : April 2017 Operational Date : 2018/2019 13
14 Saldanha : Mossgas Jetty (Artist Impression)
15 Saldanha : Rig Repair Berth 205 (Artist Impression)
Port of Richards Bay A ship repair facility provided by the private sector in the Port of Richards Bay; TNPA wants to adopt a flexible and exploratory approach to allow private sector to grow the market : Allow private sector to consider opportunities in oil and gas, ship/rig repair and maritime vessel building to meet market requirements at Richards Bay; A low risk, flexible capacity facility for ship/rig repair at Richards Bay : Floating Dock type (Repair Quay); and/or Fixed Dock Repair Facility (Causarina); Repair Berth 300m length, 8m draft; Port developments with involvement from Richards Bay IDZ; Required resources Investment: R900m (estimated) 16
17 Richards Bay : Ship Repair Sites
18 Richards Bay : Ship Repair (Artist Impression)
Port of East London Unlocking boat building in East London with a focus on potential niche markets of tug boats and navy vessels; The upgrade and refurbishment of the existing drydock infrastructure is being undertaken at the moment; Opportunity to refurbish the existing slipway facility; Investment and incentive combination to the boat or ship building industry, linked to developmental commitments (e.g. investment, job creation, skills development, supplier development); Sites identified : Dry Dock, Slipway; Required resources Investment: R 515m (estimated) 19
East London : Dry Dock and Workshop Dry Dock : Length 210m, Beam 26.5m, Draft 8m, Workshop 2 690m 2, Repair Quay 106m, 10.7m depth 20
Timeline : Port of Richards Bay & East London Ship/Rig Repair and Boat Building : EOI to Market: May 2016, EOI Closing Date : June 2016 RFP to Market : Sep 2016, Bid Closing : April 2017; Planned Facilities estimated by 2019; 21
Refurbishment of Existing Facilities Ports of Durban, East London, Port Elizabeth, Mossel Bay, Cape Town 22
Operation Phakisa Projects (Existing Facilities) : Various projects Project Objective Estimated Cofunded investment required Estimated Jobs created Estimated GDP Contribution Maintain and refurbish existing facilities Refurbish existing ship repair facilities at all ports to effectively service current and future demand R2bn Target 20 000 (incl. multiplier) by 2023 R6.5bn 23
Existing facilities : Durban Project 14/15 15/16 16/17 17/18 18/19 19/20 Comments 20/21 21/22 22/23 ETC Replacement of South side crane rail at Dry Dock Erect perimeter wall on north side of Drydock Repair of inner and outer caisson of Dry Dock Execution: Dockyard Lighting and Low Voltage Electrical Distribution Upgrade Welding Equipment Set for Shop 24 1.50 5.00 3.50 4.78 5.00 9.00 1.57 FEL 3: Geotechnical study and designs underway Completed FEL 4: Repair of outer caisson completed. Programme for inner caisson under development Completed Completed Replacement of Ship Repair Jib Cranes 5.00 95.00 20.00 FEL 3 4: formulate designs and approve procurement DURBAN Drydock 6 Tons Forklift 1.23 Completed Drydock Compressors 7.50 FER: Process business case Replace Floating Dock 5.00 16.60 FEL3-4 - : TNPA has opted to build the floating dock locally in Durban and to asses the existing dock for refurbishment Feasibility: Upgrade of Dockyard Infrastructure (E&M) Execution: Upgrade of Dockyard Infrastructure (E&M) 1.00 5.00 4.00 FEL3: Completed. Work breakdown structure finalized. Fast track FEL 4 10.00 50.00 to commence in 2016/17 70.00 40.00 Repair Concrete works in the Dock 10.00 FEL4: Works commenced by RME
Existing facilities : Cape Town and Mossel Bay Project 14/15 15/16 16/17 17/18 18/19 19/20 Comments 20/21 21/22 PM ETC Refurbishment of Sturrock Drydock Refurbishment of Robinson Drydock 2.00 33.00 35.00 35.00 35.00 1.00 10.00 20.00 19.00 FEL 3-4: Execution approvals underway FEL 3-4: Execution approvals underway Refurbishment of Synchrolift 1.70 3.90 7.63 12.00 15.63 10.00 FEL 4: In execution phase. CAPE TOWN Replacement of water circulating pumps at Sturrock dry dock 1.50 1.20 FEL 3 4: Tender awarded. Execution underway Replacement of Ship Repair Jib Cranes 25.00 50.00 195.00 FEL 3-4: Formulate designs and approve procurement 10.00 50.00 240.00 350.00 100.00 MOSSEL BAY Refurbishment of Cradle & Side Slipway Reconstruct lead-in jetty to slipway 3.00 FEL 2: Technical assessments and development of high level options Slipway upgrade 5.00 10.00 25
Initiative 5 - Existing facilities : East London, Port Elizabeth and Saldanha Bay Project 14/15 15/16 16/17 17/18 18/19 19/20 Comments 20/21 21/22 22/23 ETC EAST LONDON Refurbishment of Graving Dock + Refurbish Pumps Refurbishment of Slipway Area 5.16 54.47 FEL 3-4: Electrical and civil upgrade underway. Jib Crane feasibility study underway Execute as PSP PORT ELIZABETH Replacement Lead-in Jetties 40 ton Slipway Refurbishment (Feasibility & Execution) New 100t hoist 10.73 51.50 81.93 FEL 4: Execution: to be completed in 2017 FEL 4: Execution: to be completed in 2016 Modifications of 1200 ton slipway cradle 3.00 FEL 4: Execution: to be completed in 2017 Development of Composites Cluster (Boat building in PE) 3.00 Lease concluded SALDANHA Refurbish and upgrade General Maintenance Quay to an Offshore Supply Base FEL 4: Execution: To be completed in June 2016 26
Existing facilities Example Caisson Refurbishment
Existing facilities : Slip way, Lead In Jetties and 90 ton boat hoist - Port Elizabeth Total value approx. R186m Spend to date: R110m Local spend: R80m 28
Jobs created through Initiative 5 Port Construction Jobs created Durban 68 East London 0 Port Elizabeth 79 Mossel Bay 0 Cape Town 0 Saldanha 30 TOTAL 177 Permanent jobs created 29
Supporting activities Provision of Operation Phakisa Training Centres; Proposed Marine R&D Centre; R1.4bn build of 9 TNPA harbor tugs at the Port of Durban Approx R700m for Supplier Development Plan Training of technical personnel Programme for build of dredgers support localization Support for aquaculture Support for Oil and Gas Developments and Liquid Bulk Terminals Coastal and Marine Tourism Development 30
Closing Remarks Country growth and expansion of the economy is dependent on port capacity Blue / Oceans economy as a new driver for economic growth and job creation; New Port Facilities : Private sector Investment opportunities; Supplier Development opportunities; Close alignment with IDZ s; Existing Facilities : Sustaining capacity for repairs; TNPA is fulfilling its strategic role as an Infrastructure Provider and developing an integrated port system to grow the economy; 31
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