Opportunities in South Africa s Oceans Economy

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1 Opportunities in South Africa s Oceans Economy Block H Wedgewood Office Park, 3 Muswell Road, Bryanston, Sandton, Johannesburg, South Africa,

2 Content 1. About Us: Elekhom Global 2. Advantage South Africa 3. Market Overview 4. Drivers of Market Change 5. The SA Oceans Opportunities 6. The End 2

3 AN OVERVIEW OF ELEKHOM GLOBAL ABOUT US 3

4 Elekhom COMPANY OVERVIEW Elekhom Global is an boutique advisory services firm in the oceans sector. We offer innovative solutions to blue entrepreneurs, investors, governments and the non-governmental sector to help our clients navigate the dynamic challenges and opportunities across the oceans economy. We provide investment and enterprise development advisory and consulting services through our deep South African and Sub Saharan Africa industry knowledge, insights, expertise and robust value adding solutions that cut across the oceans economy. OUR SERVICES Our bespoke solutions hope to address the most critical challenges and exploit the most value creating opportunities across the oceans sector, industry, business and investment spectrum. Our experienced practitioners and associate partners have extensive knowledge and experience in the ocean industries to provide a comprehensive marine and maritime industry expertise across all aspects of the oceans sector. 4

5 Elekhom OUR PURPOSE Elekhom - on transforming the oceans, seas and waterways sustainably into the new liquid diamond resource: As we usher the new epoch of the Oceans Century and open up the industrial vistas of our planet's last under-explored and under-exploited economic territories - our Ocean Spaces, in the best interest of all humanity and future generations, we must ensure that our Oceans are developed with strong foundations of ecological protection and sustainability and exploited using innovative green technologies and funded largely through green financing and funding instruments. Every industry, every stakeholder and each community and participant in the Oceans Economy must become steward of the Ocean if we are to avoid the human induced disasters of the sometimes unsustainable industrial exploitation of the land resources and related territories. 5

6 AN INTRODUCTORY OVERVIEW ADVANTAGE SOUTH AFRICA 6

7 SA Oceans Facts and Figures Maritime Facts Strategically located on the Indian Ocean, the Atlantic Oceans and and Southern Seas Jurisdiction over one of the world s largest EEZs Location serves the South South Trade 8 commercial ports, which handle over 300 million Port Nolloth Richards Bay Durban tonnes of seaborne trade Oceans economy estimated to contribute approx 4,4% to GDP Saldanha Bay Cape Town Mossel Bay Ngqura East London Port Elizabeth South Africa s oceans economy is uniquely advantaged in the Sub Saharan industrial and trade regional system Home to over 75% of the leading African companies and a global leader in banking and financial market/services systems. Important oil and gas reserves are thought to be situated offshore on the Indian Ocean. Its waters offer a unique oceans and marine ecosystem

8 ELEKOM GLOBAL OCEANS ECONOMY OVERVIEW 8

9 The Oceans Economic Frontier Oceans Transport Marine Infrastructure Marine Tourism and Leisure Offshore Energy & Minerals Ocean Food Marine Manufacturing Marine Commercial Services Oceans Skills & Competence Oceans Innovation Oceans investment Oceans Knowledge Oceans Technology 9

10 ELEKOM GLOBAL DRIVERS OF MARKET CHANGE 10

11 Strategic Drivers of Change Policy & Strategy Factors National Development Plan Comprehensive Maritime Transport Policy Regional & International Factors International Conventions and multilateral agreements AU Ocean policies, strategy and multilateral The Draft Green Transport Strategy agreements Industrial Policy Action Plan Regional oceans and trade related Transnet s Market Demand Strategy agreements and strategies (IORA) Operation Phakisa: The National Oceans Regional growth and development Economic Development Programme Growing regional demand for SA manufactured goods Market Factors Alternative sources of energy and resources Oil prices China s economic growth patterns Global economic recovery Food security and forecasted shortages Climate change and environmental concerns Subdued GDP Technology and Innovation 11

12 ELEKOM GLOBAL SUMMARY OF OPPORTUNITIES 12

13 Marine Infrastructure

14 Port and Harbour Infrastructure Automation and digitisation of the port environment Port Industrial Zones (Industrial Development Zones RBIDZ, SBIDZ, ELIDZ, Dube Oil rig, ship repair, modification and maintenance facilities Development of Small Fishing harbours Cruise and Marine Tourism Terminals The potential for using renewable and alternative energy to power the Ports Intelligent Port Operations (Smart Port Programme) elte Supply of smart and modern cargo handling equipment Vessel monitoring and tracking capabilities Modernisation of Ports in line with advent of bigger vessels Expansionary plans of Transnet into the Sub Saharan Africa Region Environmental management and waste treatment technologies 14

15 Marine Transport

16 Marine Transport Intra Regional Coastal seaborne trade across Sub Saharan Africa Long term demand and supply of Dry Bulk Cargo - Bare boat charter opportunities Long term demand and supply of Liquid Bulk Cargo shipping - Bare boat charter opportunities Passenger and Equipment Transport for cruise, research, offshore, operations and support in South Africa and across Sub Saharan Opportunity to Jointly exploit international, domestic and regional cargo carrying opportunities 16

17 Green Shipping Alternative Marine Energy (LNG, Battery and Hydro powered vessels) Technology enabled maritime pollution monitoring systems Port and Harbour infrastructure and facilities for waste management, treatment and reduce carbon emissions The introduction of coastal shipping into the inter modal mix for coast wise cargo Opportunity to Jointly exploit international, domestic and regional cargo carrying opportunities 17

18 Marine Manufacturing

19 Marine Repairs, Modifications, Maintenance and Services Increase % of vessels calling from 13% to 38% ( vessels) (Operation Phakisa) Market Size Approximately 13,000 ships call on South African Ports Over 300 million tonnes of seaborne trade Over 4,9 million barrels of oil moves past South Port Nolloth Saldanha Bay Cape Town Mossel Bay Ngqura East London Port Elizabeth Africa a day Richards Bay South Africa has an estimated 10,000 ships Durban around its coast at any given point in time South Africa is on a global maritime chokepoint route Market potential of 2500 to 5000 ships per annum for ship repair, modifications or maintenance Global demand for dry-docks is on the increase Approximately 33% of tankers, dry bulk carriers and container vessels are dry dock per annum South Africa is nested in the Sub Saharan industrial regional system

20 Marine Manufacturing: Ship Building, Repairs, servicing and Modifications Sub Saharan Regional Demand for patrol, specialized and offshore support vessels. SA government fleet orders for new builds (Incl. Patrol, Naval, Merchant and leisure vessel) OEM Supply of engines, equipment, sensors, ROV and related offshore technologies Opportunities related to the recapitalisation of South Africa s fishing fleet Partnerships with local ship yards for local and regional marine manufacturing Repairs, maintenance and modification of ships, oil rigs and other offshore platforms New boat building industrial park recently established in the Port of Durban. 20

21 Ship Building Current New Building Projects Project Hotel = The investment needed for a new hydrographic vessel for the SA Navy was in the order of R1.8 billion. Project Biro - Damen won the Biro project bid with its FCS 5009 design for the inshore patrol vessels Sea Axe measures 85 meters in length and reaches a maximum speed of 26 knots. Transnet tug construction; the largest contract ever awarded to a South African company for building harbour craft for R1.4-billion ($100 million in 2017 prices) Future Building Projects Building of smart patrol ships with Port integrated management technology Supply of original equipment and integrative technologies Fuel and operationally efficient vessels Joint regional opportunities 21

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23 Oceans Economy Enabling Frontier Oceans Skills & Competence Oceans Innovation Oceans investment Oceans Knowledge Oceans Technology????? 23

24 THE END 24