1. Compiled by: Sobantu Tilayi Presented by: Karl Otto 28 November 2011 SAMSA “enterprise of integrity” Presentation to African Ports and Maritime Conference Ports & Logistics: “A Vision for Future Integration”

2. Environmental Protection Vessel Contents: THE SAMSA MANDATE AND ROLE DEFINING THE NATION’S MARITIME INTERESTS THE MARITIME ECONOMY MARITIME DEVELOPMENT: A PRECONDITION FOR ECONOMIC DEVELOPMENT LEGISLATIVE ISSUES CONCLUSION GALLERY

3. 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

4. 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

5. WAY FORWARD AND RECOMMENDATIONS Maritime Cluster Governance & Coordination MARITIME SECTOR CLUSTER - A SECTOR BASED FRAMEWORK

6.  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)

7. AFRICA’S MARITIME INTERESTS … 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 !!!

8. INTRA-REGIONAL TRADE IN AFRICA IMPORTSEXPORTS AFRICA9.68.7 DEVELOPING AMERICA20.918.5 DEVELOPING ASIA48.145.5 DEVELOPED AMERICA23.339.8 DEVELOPED EUROPE68.171.4 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%)

9.  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 EXPORTERS TO AFRICA and THE REST OF THE WORLD EXPORTS TO AFRICAEXPORTS TO THE REST OF THE WORLD COUNTRYSHARE OF TOTAL INTRAREGIONAL EXPORTS COUNTRYSHARE OF TOTAL AFRICAN EXPORTS TO THE REST OF THE WORLD SOUTH AFRICA24.29ALGERIA17.36 NIGERIA12.37SOUTH AFRICA15.98 COTE d’IVORE7.40NIGERIA14.78 KENYA5.36ANGOLA8.80 SWAZILAND5.34LIBYAN ARAB JAMAHIRIYA 8.75 NAMIBIA3.47MOROCCO4.30 GHANA3.42EGYPT4.07 ALGERIA3.36TUNISIA3.87 TUNISIA3.18CONGO2.36 ZIMBABWE3.04COTE d’IVOIRE2.09 SOURCE: UNCTAD, 2008c # COUNTRIES IN RED APPEAR ON BOTH LISTS AND ARE COASTAL

10.  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 TOP TEN IMPORTERS TO AFRICA and THE REST OF THE WORLD IMPORTS FROM AFRICAIMPORTS FROM THE REST OF THE WORLD COUNTRYSHARE OF TOTAL INTRAREGIONAL EXPORTS COUNTRYSHARE OF TOTAL AFRICAN EXPORTS TO THE REST OF THE WORLD SOUTH AFRICA9.80SOUTH AFRICA25.40 BOTSWANA8.23MOROCCO9.22 NAMIBIA6.59ALGERIA9.18 COTE d’IVOIRE4.91EGYPT8.00 SWAZILAND4.70NIGERIA7.73 ZAMBIA4.58TUNISIA6.00 ZIMBABWE4.53LIBYA3.49 LESOTHO3.45SUDAN2.92 NIGERIA3.45LIBERIA2.78 D R CONGO3.24GHANA2.42 SOURCE: UNCTAD, 2008c # COUNTRIES IN RED APPEAR ARE COASTAL

11.  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

13. 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

14. WAY FORWARD AND RECOMMENDATIONS Maritime Cluster Governance & Coordination WAY FORWARD - AFRICA’S MARITIME DEVELOPMENT - MARITIME SECTOR CLUSTER GOAL 2: Promote South Africa’s maritime industry/economy development Promotion of Maritime BBBEE and industry transformation Promotion of maritime awareness, maritime industry skills capacity and creation of jobs SAMSA STRATEGIC GOALS PUBLIC INTEREST PERSPECTIVE TRANSPORTATION PERSPECTIVE INDUSTRIAL PERSPECTIVE SHIP & BOAT BUILDING LOCAL/REGIONAL COASTAL SHIPPING & LOGISTICS BUSINESS CONSULTING SERVICES ENGINEERING & TECHNOLOGY SERVICES SKILLS TRAINING RESEARCH & INNOVATION LEGAL,BANKING, AUDITING, ASSURANCE EXPLORATION COMMERCIAL SERVICES SHIPPING/CARGO OPERATIONS & LOGISTICS PORT, COASTAL & MARITIME ADMINISTRATION INTERNATIONAL SHIPPING & LOGISTICS OFFSHORE ENERGY & MINING PRODUCTION MID & DOWNSTREAM PORTS & HARBOURS MARITIME MULTIMODAL CORRIDOR SAFETY OF LIFE, PROPERTY, CLIMATE & ENVIRONMENT MARITIME SUPPLY CHAIN SECURITY TERRITORIAL INTEGRITY INCLUDING PR. EDWARD ISLANDS & ANTARCTICA SHIP REGISTRY SHIP REPAIRS/ CONVERSION OIL & GAS FISHING RENEWABLE ENERGY SPORTS & RECREATION MARINE TOURISM LEISURE RESOURCES PERSPECTIVE TOURISM AND LEISURE PERSPECTIVE MINING

15. SOUTH AFRICAN MARITIME TRAFFIC (1735 SHIPS)  3,000 km coastline  8 established commercial ports INVESTMENT OPPORTUNITIES 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 Pleasure boats Fishing boats operations Crude supply logistics Offshore support Diamond & Minerals Naval ship operations Naval aircraft operations Infrastructure, Construction, Technology 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 Public Interests # Climate Change 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 Skills, Research & Innovation [Incl. Education] Training & Dev Research Innovation & Technology Research Innovation & Technology Training & Dev Research Innovation & Technology Training & Dev Research Innovation & Technology Training & Dev Research Innovation & Technology Training & Dev SUPPORTING Manufacturing Mining and Agriculture Infrastructure SUPPORTING Tourism Manufacturing SUPPORTING Manufacturing Agricultural Value Chain SUPPORTING Manufacturing [Energy Security] SUPPORTING Manufacturing [National Security Defence]

16. 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 network.

17. 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 !

18. SHIPPING & TRANSPORT MARINE RESOURCES MARINE TOURISM OPERATIONAL SUPPORT SERVICES MANUFACTURING/ CONSTRUCTION BUSINESS SERVICES PUBLIC INTEREST PORTS, MARINE SERVICES & COASTAL MARITIME LOGISTICS INFRASTR/RE SHIPPING TRANSPORT FISHERIES, PHARMACEUTS / AQUACULTURE OFF-SHORE ENERGY & MINING BOATING & CRUISING SPORTS & RECREATION LEISURE SHIPPING LOGISTICS MARINE TECHNOLOGIES MARINE & CIVIL ENGINEERING BANKING & CONSULTING MARITIME REGULATORY & NAVAL DEFENSE Maritime Logistics Hubs Rail Road Pipeline Vessel Operations Short –Haul Shipping Long-Haul Shipping Shore based management Ports & Coastal Administration Infrastructure Development & Maintenance Off-Shore Ops, Ship to Shore Transfer, Diving Shore side Ops Marine, Aids to Navigation, Aquaculture Catching & Processing Yachting Oil and Gas Exploration & Production Eco-Marine Tourism Real Estate Marine Activities Cruising, Ferrying Customs Clearance Ship/Cargo Agency Crewing Services Vessel management Environmental Management Marine Traffic Management Marine Software, Green Technologies, Maritime Corridors Observatories & Aquaria Marine Equipment Manufacturing Vessel Repairs & Construction Financing Technical & Business Consulting Legal Services Auditing Governance, Regulatory, Compliance Training and Education Security, Defence, Customs Safety - Navigation, Environment, Property Pharmaceutics Freight Forwarding Biotechnology, R&D, SKILLS INDUSTRIES SUB-SECTOR SUB-SECTOR R INDUSTRIES S Primary Cluster Secondary Cluster Ports Waterfrnt & Cruise Terminals & Jetties Shore based management Ocean, Tidal Inland Water Resources Management Renewable Energy [Wind, tides, Nuclear] Diving Hospitality & Entertainment Sailing Adventure & Views Minerals Mining Swimming Insurance Research and Development (R&D) and Innovation

19. 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.

20. 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.

21. 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!

22. GALLERY

23. GALLERY

24. Satellite AIS - over 8000 vessels Courtesy: Marine Data Solutions

25. SA land mass = 1,220m.sq.km SA ‘sealand’= 3,432m sq.km SA Search and Rescue Region = 27.7m sq.km. GALLERY SAR Region

26. SAMSA Thanks You !!!