MINUTES OF THE PORTS CONSULTATIVE COMMITTEE MEETING HELD AT TRANSNET NATIONAL PORTS AUTHORITY OFFICES SALDANHA BAY 10:00 WEDNESDAY, 8 NOVEMBER 2012

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1 MINUTES OF THE PORTS CONSULTATIVE COMMITTEE MEETING HELD AT TRANSNET NATIONAL PORTS AUTHORITY OFFICES SALDANHA BAY 10:00 WEDNESDAY, 8 NOVEMBER 2012 ATTENDANCE Ports Regulator South Africa: Ms. Helen Dube Representative MEMBERS Ms. N. Mzamon Ms. Selma Schwartz-Clausen Ms. ThandiweNtuli Mr. Willem Roux Ms. Lindo Mkhize Ms. Lucia Mvelase Mr. Shane Cordon Mr. Claude Orgill Mr. WaseemRinquest Mr. Arthur Martin Department of Transport (Chairperson) SAMSA (Secretariat) Acting Harbour Master One Other: National Ports Authority One Other: Transnet National Ports Authority Labour SATAWU Local Government: Saldanha Bay Municipality Provincial Government: Western Cape Government Provincial Government: Western Cape Government Port User : Lessees/ Port Terminals / Stevedore INVITED Ms. Helen Dube Mr. Sanjay Govan Mr. Dave Colly Mr. Doug Southgate CEO Ports Regulator on behalf of Mr R. Khan Transnet National Ports Authority : JHB SAMSA Saldanha Bay IDZ APOLOGIES Members : Mr. Martin Slabber Mr. D Colly UTATU SAMSA SAMSA Labour Representative ABSENT 3 rd Quarter Saldanha PCC Minutes: Page 1

2 ITEM DISCUSSIONS RECOMMENDATION(S) 1. WELCOME The new Chairperson, Ms N Mzamon, welcomed all to the meeting. She requested that we all introduce ourselves. Ms. Selma Schwartz-Clausen requested that all members look at the schedule for 2013/2014 PCC meeting dates and diarize these dates. 2. ATTENDANCE In confirming whether the meeting has reached a quorum attendance of members were noted as follows: NPA Acting Harbour Master Ms. ThandiweNtuli NPA: Mr Willem Roux and Ms. Lindo Mkhize Port User Representative : Mr. Arthur Martin Provincial Government: Mr. Claude Orgil Local Government: Absent Labour: Ms. Lucia Mvelase Chairperson SAMSA The meeting reached a quorum as is required in the National Ports Act, No. 12 of 2005 and the National Ports Regulations of ADOPTION OF THE AGENDA The agenda was adopted with the following changes. 4. ADOPTION OF THE MINUTES OF THE MEETING ON 7 AUGUST MATTERS ARISING FROM THE MEETING OF 7 AUGUST IDZ Business development within the IDZ, presentation given by Ms. Laura Peinke from SBIDZ. SBIDZ will be focusing on a single cluster, the oil/gas and marine repair cluster. South Africa presents a good opportunity for the oil and gas industry. The aim is create a functional industrial hub which focuses on an initial cluster which is the oil, gas and marine repair cluster. The focus is on a demand driven industry that attracts both foreign and local investors, and which will add to the economic development of the Saldanha bay area. We need to consolidate the administrative procedures as sometimes it can be onerous for both foreign and local investors to register an entity. We need a single point of contact for these investors who wish to operate within this cluster and within the IDZ. Why oil, gas and the marine repair cluster? It is a demand driven industry and we know it is a good idea because investors have been asking questions about opportunities, as there is no existing facility on the African Continent. Why an industrial development zone? We need to use the existing legislation to put in place efficient custom s control areas to incorporate a free zone environment and to make it easier for these companies to operate. Action 1: Mr Roux to liaise with municipality, DTI and Provincial Government to compile a list of all role players involved with the IDZ project. This list must be sent to the Secretariat of the PCC. Action 2: Secretariat to register the PCC as an interested party and complete the registration form. Action 3: Ms. L Peinke to send an official invitation to the PCC members, via the secretariat, to attend the press conference. The main service areas will be general purposes; ship repairs/spare parts and job opportunities within the fabrication servicing area. Skills capacity and training is a huge concern for the licensing company so we need to make sure we do skills training with the area rather than foreign skills. We need to make sure as many local companies are accredited. We need to engage with as many stake holders as possible and request that all interested parties/organizations register on a stake holder database to enable us to address questions they may have before the Public forum. 3 rd Quarter Saldanha PCC Minutes: Page 2

3 By Jan/Feb 2013 we expect to have designations, post Public comment. Ms. L Peinke invited all members to complete the stakeholders registration form and be part of the process. The PCC should be registered as an interested party. Ms. Selma Schwartz-Clausen requested that a list of parties involved with the IDZ within the Saldanha Bay region be supplied to the PCC secretariat. The list should include the representation and titles. Mr Southgate informed the PCC that it is an impossible task to supply a list of all these role players. Mr Southgate would not be able to circulate this list. Mr W. Roux was requested to liaise with the Municipality, DTI and Provincial Government to try compile a list of all role players. The Chairperson requested that all information be shared with the Secretariat during the compiling of this list. Ms. L Peinke officially invited all the PCC members to a press conference on the 29 November OIL AND GAS FINANCIAL MODEL Mr Steve Hrabar The development of the upstream oil and gas industry in the Western Cape ( ) The Terms of Reference of the Report: To examine the Oil and Gas market and vision where South Africa wishes to be in the short(0 to 3 years) and long (4 to 10 years) term in providing fabrication, repair and maintenance and onshore base services, based on currently capabilities, to oil and gas industry on the West and East coast of Africa. To support this vision, the report must also address the supporting functions of skills, training, equipment, infrastructure and legislative issues in order that South Africa is competitive in the service that it offers and is aligned with Industrial Policy Action Plan 2. The report must include tangible and achievable recommendations for the stakeholders to implement. The task team was also asked that the report must be concise and be completed by the end of November Onshore Base Action: 4 The Chairperson requested that TNPA give the PCC an update on the presentation given by Mr Hrabar as some government interventions are required and we need these to be escalated. A modern supply base serving East and West Africa s upstream oil and gas market Fabrication and Construction The fabrication of marine structures and subsea manifolds and processing units for Sub- Saharan Africa in shallow and ultra-deep waters Ship Repair and Maintenance Floating repairs, dry dockings, conversions and upgrades for existing and new generation rigs Ship Repair Infrastructure - Short Term Requirements Quay Space and Facilities Sufficient quay space 500 m with hard ground for heavy lifts. Will include safe berthing with adequate type fending Draft 18 meters (23m) Cover storage (500 m²) Open storage area (10,000 m²) (45,000 m²) Must have a security and access control as well as access for equipment, heavy lift and abnormal loads and access via rail. Must include facilities for water supply, electricity supply (440V 60Hz) and communication facility. Dedicated area for pollution and waste control and a safety health and environmental plan in place. Ablution facilities as well as office/canteen facilities. Ship Repair Infrastructure - Short Term URGENT 3 rd Quarter Saldanha PCC Minutes: Page 3

4 TNPA: issue and adjudication of floating dock tender Response to Port facilities requirements steering committee, cranes, dock bookings, connections tc. Maximise Sturrock Dock availability strategy required to firm up provisional bookings Medium Term 2 to 5 years Clarity on additional floating docks Identification of lay down area and quay for offshore projects in Saldanha Longer Term 5 to 7 years Requirements and involvement of industry for Ship-lift RECOMMENDATIONS OF CONSULTANT - Recommendations An Independent Operator for the facility is first choice to ensure common user access The tender should be directed towards an Independent Operator A South African Independent Operator would be preferred but a Foreign Operator would be cceptable If an Independent Operator does not Tender, then a Consortium of ship repair companies should be allowed The tender should be required to state how common user access is ensured If a Consortium tenders it s offer should be clear how no dominance and involvement of BBEEE and SMME companies is ensured throughout the life of the concession Corporation Framework Implementing the Task Team recommendations will require a Steering Team that has: A clear mandate and strong support from top levels of government to develop the upstream oil and gas opportunity; Ability to access and mobilise key decision makers in government, industry and Transnet to ensure plans are implemented; Access to human and financial resources to conduct necessary studies and develop appropriate plans; Strong support and participation from key stakeholders. Since no such group exists the Task Team proposes that this multi-stakeholder group take on the role until such a team can be formed: Promote and monitor the implementation of recommendations; Meet quarterly for this purpose; Work to establish an appropriate longer-term Steering Team with a formal mandate for driving growth of the maritime upstream sector Current group should be enhanced by adding PGEC and PGKZN representatives Recommendations Onshore Services Hub The UAL supply base project at Saldanha Bay should be given all necessary support to ensure that the proposed facility and quayside be completed as soon as possible. PGWC and DTI expedite the creation of an IDZ at Saldanha Bay and secure a credible international operator to develop an oil & gas services hub within the IDZ. Fabrication and Construction Action with respect to the Saldanha Bay fabrication facility is to find another piece of suitable land for fabrication. PGWC should resolve their lack of capacity around abnormal load registration and permitting. Ship/Rig Repair & Maintenance Recommendations Immediate Support for the Sector TNPA to ensure that the ship and rig repair sector has adequate and reliable access to 3 rd Quarter Saldanha PCC Minutes: Page 4

5 necessary port infrastructure over the next 5 years. Clear priority allocation of specific facilities in different ports (204 in Saldanha, repair quay in Cape Town, quay(s) in Coega and elsewhere). Maintain facilities to required standards (Sturrock Dry dock, Repair quay). Review national repair booking procedures to ensure jobs not contractors are booked and that work isn t lost because of non-firm bookings. TNPA appoint a dedicated oil & gas industry manager. Investment for Future Growth Develop a credible, data-driven strategy for the oil & gas ship repair sector ; this will be a 3-phase study: Phase 1 Market Study Already completed Phase 2 National Oil & Gas Ship Repair & Maintenance Study Phase 3 Planning & Implementation Studies Enabling Environment Expand this stakeholder group to oversee implementation of these recommendations. Transnet/TNPA must improve performance in making decisions. Implement the recommendations of the Deloitte report on dealing with the oil and gas customs related issues. Address delays and inefficiencies in the process for granting visas and work permit applications for personnel on oil & gas projects. Improve access for South Africans to neighbouring countries and their oil and gas markets: Ensure South African fabricators are not being discriminated against under the guise of local content. Improve visa access to Angola, Nigeria and other key oil producing nations in West Africa. The Task Team notes the need for government to accelerate its new focus on artisan training. This is critical for the oil and gas services sector. The Chairperson requested that TNPA give the PCC an update on the presentation given by Mr Hrabar as some government interventions are required and we need these to be escalated. 6. Standing Items 6.1 TNPA Mr Willem Roux, Port Manager Saldanha, provided a brief overview of the operational effectiveness and productivity oversight and volumes within the port of Saldanha. Quarterly trade and vessel traffic TNPA IRON ORE Year to date performance, below target. VESSELS TURN AROUND TIME Performed better than budget, the quicker we can turn around vessels the more vessels we can handle. BREAK BULK Performed extremely well, ahead of budget and we will see this trend continuing. VESSELS 11 vessels which was equal to budget BERTH OCCUPANCY Berth occupancy is higher than budget, but targets are on the low side. MARINE SIDE Delays due to waiting for berths WAITING TIMES Waiting times much higher (increased). No weather delays were noted. VESSEL MOVES Actual exceeding budget. Tug utilization is lower than budget. Performance improvements. GROSS TONNAGE GT average exceeding the budget for this month. Smaller vessels 3 rd Quarter Saldanha PCC Minutes: Page 5

6 CAPITAL SPENDING calling at our port. 2011/12 Execution Phase 1B IOT Expansion (41 to 47 mtpa) Upgrade of Port Entrances up to 2013 Replacement of steel staircases and hand railing at ore and oil jetty up to 2013 Additional Access platforms to accommodate staggered ship loading configuration Acquisition of 3 replacement tugs up to 2014 Refurbish and upgrade port s water network up to 2013 Acquisition of replacement Pilot boat and Work boat up to 2013 Alot of the spending is going to the new tugs and TNPA are optimistic they will be able to award the tender for the new builder within the next month. 2012/2013 Execution Phase 1B IOT Expansion up to 2014 Upgrade of Port Entrance up to 2013 Replacement of steel staircases and hand railing at ore and oil jetty up to 2013 Additional Access platforms to accommodate staggered ship loading configuration Acquisition of 3 replacement tugs up to 2014 Refurbish and upgrade port s water network up to 2013 Acquisition of replacement Pilot boat and Work boat up to 2013 Refurbishment of Rock Quay & execution up to 2015 Relocate Civil Depot and lighthouse services workshop up to 2014 Alternative power supply to Bayvue 2013/2014 Execution Phase 1B IOT Expansion up to 2014 Additional Access platforms to accommodate staggered ship loading configuration Acquisition of 3 replacement tugs up to 2014 Refurbishment of Rock Quay & execution up to 2015 Relocate Civil Depot and lighthouse services workshop up to 2014 PORT PLANNING AND DEVELOPMENT (Strategic projects) 1. SHIP REPAIR FACILITY The port is in the process of obtaining approval to embark on Sect. 56process for ship repair facilities at the port of Saldanha as prescribed in the Port Act. Consultants have been appointed to conduct a location study for these Facilities 2. LIQUIFIED PETROLEUM GAS (LPG) The Port of Saldanha is nearing the final stages of concluding a commercial agreement for the operation of an PG facility in the Port. The following milestones have been achieved: (a) Technical agreements including: i. the preferred marine option; ii. the preferred pipeline route 3 rd Quarter Saldanha PCC Minutes: Page 6

7 (b) EIA process being run by the preferred bidder 3. PORT DEVELOPMENT FRAMEWORK PLAN The PDFP is currently under review Review is driven nationally In the initial phases LTFP (30 years) is also underway and is run by Transnet Group Planning 4. LAND ACQUISITION The port of Saldanha has identified land that is of strategic importance for future growth and development of the Port. The Port has started to engage with landowners in order to acquire additional back of port land. 5. IRON ORE EXPANSION This project aims to increase the port s iron ore export capacity from60mtpa to 82.5mtpa. 6.2 NPCC Meeting Currently in FEL2 stage : completion by May 2013 Mr A Martin FEL3 stage to commence thereafter. Funding approved The tariffs which were published and the road show on 22 Nov Ports of entry were high on the agenda as well as the ability for crew changes to happen. Processes Section 56, The CEO said there is a delay in processes as the process needs to be fair and credible. Longer term leases, when RPS s go out it is usually 3-5 years but cannot get a return in such a short period. 6.3 LABOUR FEEDBACK UTATU Feedback No representation SATAWU Feedback Ms L Mvelase The issue surrounding all the new developments was raised as many did not know what was happening and wanted to know who they could get this information from as no feedback has been received. The Secretariat mentioned that all the issues raised at the PCC meetings must be communicated to the Saldanha Bay residents and if more clarity is required Ms. S Scwartz-Clausen can assist in obtaining this. 6.4 PORT USER FEEDBACK Processes: The secretariat requested alternates for all port user representatives. If one person is unavailable to attend then an alternate should be present. The Minister needs to make these final appointments CARGO OWNERS/FREIGHT FORWARDERS/HAULIERS Mr F Burger No items tabled for discussion. 3 rd Quarter Saldanha PCC Minutes: Page 7

8 6.4.2 SHIPPING LINES/AGENTS/SHIP REPAIRS Mr S. Hrabar No items tabled for discussion TERMINAL OPERATORS / LESSEES / STEVEDORES Mr A. Martin No items tabled for discussion GOVERNMENT FEEDBACK LOCAL GOVERNMENT No items tabled for discussion PROVINCIAL GOVERNMENT Mr C Orgill Funding has been made available for unemployed people within the Saldanha Bay area to receive training and skills to obtain trade tests. Mr Orgill requested a list from Mr W Roux of all the provincial departments. Action 5: Mr Roux to supply, via the secretariat, a list of all the provincial departments DEPARTMENT OF TRANSPORT (DOT) No Submissions. 6.6 PORTS REGULATOR Ms H. Dube Ms Dube invited all the PCC members to the road show and stated that this is the platform to ask questions and issues surrounding the tariff application. Road show dates are as follows; 19 November 2012 Durban, 20 November 2012 Johannesburg, 21 November 2012 Port Elizabeth, 22 November Cape Town Action 6: Secretariat to and invite all members of the PCC to the road shows All Final written submissions deadline is the 14 th December SAMSA No items were tabled for discussion. Mr S Hrabar would like to make an appointment with SAMSA regarding vessels wanting to come to South Africa. 7. New Items 7.1 ARTISAN TRAINING INVESTMENT OVERVIEW DORMAC The representative from DORMAC was not available and the Secretariat to ensure the attendance at the next PCC meeting. Action 7 : Mr Hrabar to set up an appointment with SAMSA Action 8 : Secretariat to request a representative from DORMAC be present at the next PCC meeting. 7.2 CALENDAR FOR PCC MEETINGS 2013/ rd Quarter Saldanha PCC Minutes: Page 8

9 TARIFF TRAINING FOR NPCC REPRESENTATIVES. NPCC representatives were invited to attend training to understand the tariffs, all travel and accommodation will be paid. The training will be done in Pretoria in the SAMSA offices 29 November Action 9 : Secretariat requested all PCC members to identify specific training requirements within each port and submit this list to the PCC Secretariat. IMO has funds which are available to us for port specific training. The Secretariat requested that all present identify specific training requirements within each port and submit this list to the PCC secretariat. ITEMS TO BE TABLED AT THE NEXT NPCC MEETING Department of Home Affairs: - Issues surrounding port of entry and the serious implications to crew. Ballast water new regulations:- have huge implications on the port environmental aspect. 8. DATE AND VENUE FOR NEXT MEETING The next meeting is scheduled to take place at 10:00 Thursday, 7 th of February 2012 at TNPA building. 9. CLOSURE There being no further business the meeting was adjourned. Approved by Chairperson of the PCC Date Secretariat of the PCC Date 3 rd Quarter Saldanha PCC Minutes: Page 9