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PRESENTATION TO THE PORTFOLIO COMMITTEE 14 MAY 2008

PRESENTATION TO THE PORTFOLIO COMMITTEE 14 MAY 2008. BY SAMSA CEO – COMMANDER TSIETSI MOKHELE. BRIEFING CONTENT. OBJECTIVE OF THE PRESENTATION OVERVIEW OF MARITIME INDUSTRY AND SAMSA SAMSA LEGAL MANDATE AND ROLE GLOBAL TRENDS AND DEVELOPMENTS CHALLENGES FACING THE INDUSTRY AND ENTITY

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PRESENTATION TO THE PORTFOLIO COMMITTEE 14 MAY 2008

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  1. PRESENTATION TO THE PORTFOLIO COMMITTEE 14 MAY 2008 BY SAMSA CEO – COMMANDER TSIETSI MOKHELE

  2. BRIEFING CONTENT • OBJECTIVE OF THE PRESENTATION • OVERVIEW OF MARITIME INDUSTRY AND SAMSA • SAMSA LEGAL MANDATE AND ROLE • GLOBAL TRENDS AND DEVELOPMENTS • CHALLENGES FACING THE INDUSTRY AND ENTITY • INDUSTRY CHALLENGES • INSTITUTIONAL CHALLENGES • STRATEGIC RESPONSE - INTERVENTIONS • NEW CORPORATE DIRECTION AND VALUES • INDUSTRY • INSTITUTIONAL • PROJECTS • CONCLUSION • WAY FORWARD AND RECOMMENDATIONS

  3. Objective of The Presentation The objective of this presentation is to brief the Portfolio Committee on Transport on • Challenges currently faced by SAMSA • Interventions in place to address the challenges • Key strategic activities planned for the 2008/2009 financial year

  4. Overview of Maritime Industry and SAMSA - A snapshot SAMSA LEGAL MANDATE AND ROLE • SAMSA was established on 1 April 1998 • Its formation resulted from the 1996 Transport Policy which articulated its context as follows: • RDP context of • Growing the economy • Developing the human resources • Democratising the state and society • Meeting basic needs • The vision for South Africa’s transport as being to ‘... support government strategies for economic and social development whilst being environmentally and economically sustainable’ • The maritime policy imperatives and goals 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 to the modernisation of shipping administration...

  5. Industry and SAMSA Overview - A snapshot ...continued SAMSA LEGAL MANDATE AND ROLE • The founding legislation of SAMSA identified three core mandate functions of the entity as: • To ensure safety of life and property at sea • To prevent and combat pollution from ships in the marine environment • To promote South Africa’s maritime interests • Needless to say that the first 2 functions are of a safety regulatory/compliance nature, which SAMSA focussed over the past 10 years. However, even then, SAMSA’s effectiveness was hampered by • an ineffective business model • a fragmented offering, eg Aids to Navigation, Civil Hydrography and pollution management • lack of systems and technologies to track and monitor shipping activities at sea • The 3rd mandate has remained largely dormant, and its implications not fully explored; yet it is this mandate/function which has largely been leveraged by other maritime administrations to reposition themselves beyond regulatory and technical compliance , • into national strategic assets capable of advancing and protecting national interests • on the global stage

  6. Industry and SAMSA Overview - A snapshot ...continued GLOBAL TRENDS AND DEVELOPMENTS • Globally, over the past decade, maritime administrations have transformed themselves into lead agencies for maritime industry development and sector leadership, serving their domestic economies and industries as: • Strategic centres for maritime knowledge management ie • centers for maritime information, research, innovation and expertise • Hosts of the national promotional facilities such as International Maritime Centre (IMC)and Maritime based Economic Cluster projects aimed at attracting international maritime industries and investments into the local economy • Policy advisory services for the state and private sectors on issues beyond regulatory eg competitiveness and job creation • Facilitators of maritime sector growth initiatives aimed at improving the sector’s contribution to the GDP and promotion of domestic industries internationally • Agencies providing a full menu of navigational services such as Hydrography, • And Marine Aids to Navigation, as well as pollution control capabilities

  7. Challenges facing the Industry and Entity ...industry INDUSTRY CHALLENGES • Inadequate attention given to the maritime industry • Lack of policy on the maritime transport sector • Lack of support/incentive programmes to key maritime industries & initiatives • Fragmented industry with no coherent structures to engage on key issues • Outdated and uncompetitive ship register • only 1 commercial ship on the SA register (as opposed to 60 in 1990) • Chronic shortage of maritime skills (seafarer & nonseafarer), resulting from • shortage of training infrastructure capacity • lack of awareness of maritime careers • lack of domestic fleet • high demand on skills globally • reliance on expatriate expertise • Insignificant gains in the implementation of the BEE transformation initiatives • Lack of technological and innovative support infrastructure to the shipping • industry eg e-commerce, track and trace, ship-to-shore communication

  8. Challenges facing the Industry and Entity ...SAMSA SAMSA CHALLENGES • A dis-joint between the policy establishing SAMSA and the legal mandate, resulting in an ineffective business model, functioning largely on historical and adhocratic mode • A mismatch between the vast and diverse maritime interests and mandate, and the current configuration of the Entity • An unsustainable funding model, resulting in the current year-on-year deficit budgeting (F2007/2008 had deficit of R14m) • Low skills capacity to address both the institutional and industry challenges • Lack of technological capacity to support and enable business • no vessel tracking or identification technology • no e-commerce capability • inadequate internal management information systems • Low levels of participation by women and black people in the technical areas

  9. Strategic Response – Interventions ...new direction NEW SAMSA DIRECTION AND ORIENTATION Value proposition The authority leading the advancement of South Africa’s maritime safety and industry development through service excellence Vision The authority championing South Africa’s global maritime ambitions Mission To promote South Africa’s maritime interests and develop and position the country as an International Maritime Center while ensuring maritime safety, health and environment

  10. Strategic Response – Interventions ...values VALUES STATEMENT: (D-ETHIC) Diversity: Strength in our diversity as a true South African company Enterprising Forward thinking and innovative in our business solutions Teamwork Recognising the support of others in building the future High performance Delivering service excellence Integrity Our business conduct and credibility beyond reproach Caring Respect and caring for our employees

  11. Strategic Response – Interventions ...industry POLICY • Engage and assist the DoT and Ministry with the development of the Maritime policy • To enhance SAMSA’s Strategy and Policy functions in order to improve its capacity to provide quality advice on maritime policy matters INDUSTRY ORGANISATION • Initiate and host the Maritime Cluster forum as a platform to engage on maritime industry promotion and policy engagement SHIP REGISTER • Take the lead in engaging stakeholders on the revamping of the SA Ship register • Engage in the development and promotion of the tonnage tax policy SKILLS • Develop a business case for the development of the Maritime Skills Strategy and Plan for the entire sector • Initiate in partnership, a maritime awareness campaign throughout SA

  12. Strategic Response – Interventions ...industry cont BEE INTERVENTION • Engage the maritime industry on the policies aimed at the transformation of the industry and implementation of BEE • Engage DoT/DTI on the promulgation/implementation of the Maritime BEE Charter TECHNOLOGY • Initiate projects to improve the technological and innovative uptake of the industry and SAMSA • LRIT – Long Range Identification and Tracking • VTS/VTMIS – Vessel Tracking Services • AIS – Automatic Identification System

  13. Strategic Response – Interventions ...SAMSA SAMSA MANDATE • Review the SAMSA mandate • Update international and domestic maritime legislation INSTITUTIONAL CAPACITY, INNOVATION AND TRANSFORMATION • Improve the institutional capacity • Improve human capital through recruitment and training • Improve the financial resources • Improve systems and technological infrastructure • Implement an aggressive transformation programme • Improve the entity’s research capacity and programme BUSINESS AND FINANCIAL MODEL • Review the business model of SAMSA with the aim to growing the agency into a competent maritime authority • Review the funding model and its attendant financial model

  14. Strategic Response – Interventions ...SAMSA cont STRATEGIC PROJECTS • Western Indian Ocean Marine Highway (sponsored by World Bank and GEF) • Implementation of the expanded regional Search and Rescue programme • Studies on: • The BEE compliance issues in the maritime transport industry • The risk assessment in the provision of the maritime pollution prevention capability • Development of South Africa’s Maritime Skills Strategy and Plan • Establishment of a Maritime (Economic) Cluster Forum/Promotion Council • Improve the technology and systems in the company • Implementation of a company-wide Enterprise Resource Planning (ERP) system • Implementation of new operating systems ie • Ship registration system and Seafarer certification system • Implementation of the Small Vessels and Inland Waterways regulations • Implementation of the IMO Voluntary Audit Scheme – Correction Plan • Diversity/Change management intervention

  15. Conclusion WAY FORWARD AND RECOMMENDATIONS SAMSA requests for the PCOT’s support in the following key interventions: • Repositioning and remodelling SAMSA into a financially viable and self sufficient, competent and modern maritime authority • Supporting the initiative to establish the Maritime Industry Cluster forum intended to advance the competitiveness of the industry and the attractiveness of South Africa as an International Maritime Center • Review and updating of international maritime legislation in the light of the IMO Audit • Expediting the promulgation and enforcement of the Maritime BEE Charter • Embarking on a maritime awareness campaign to draw attention to the role the sector can play in addressing poverty issues such as job creation, growing the economy and providing business opportunities • Embarking on the Promotion of the South African Ship Register as a register of • choice, primarily to South African ship owners

  16. Maritime Cluster WAY FORWARD AND RECOMMENDATIONS

  17. Maritime Cluster

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