As Africa’s largest building and repair company for commercial ships, naval vessels and a range of other marine structures, Southern African Shipyards is at the forefront of the growth and development of the African shipbuilding industry. Although with an already illustrious history, their recent R1.5 billion contract with The Transnet National Ports Authority looks set to completely blow their previous successes out of the water, as they promise to deliver nine state-of-the-art tug boats within just 42 months.
Located in the Port of Durban Bay, the 11 hectare site of Southern African Shipyards (SAS) boasts sophisticated facilities, equipment and space to take on multiple projects, a dedication to employee training and satisfaction and strong relationships with other allied businesses and organisations. Such a combination has evidently brought great success to the company in terms of both revenue and reputation; a position that has been over five decades in the making.
The shipyard was first established in 1960 by Barends, but it was taken over in 1973 by Sandock Austral as the specialist site for a Naval Ship Building Program. Later, a deal between Oceanco and Dorbyl Marine resulted in the yard being used as a basic construction site for Oceanco’s ships. In 1995, the shipyard hit turbulent times as Dorbyl enacted the closure of all their shipbuilding operations in Durban, leaving Oceanco without a space or means to manufacture their vessels. However, the breakdown of this coalition constituted a prime opportunity for someone to acquire the site and work to ensure it would reach its full potential – one seized by Southern African Shipyards.
Today, the company is thriving and continually expanding in both positive reputation and workload, with the company’s back catalogue of projects showcasing the diversity and quality of their abilities. For example, from 1977 – 1985, they were commissioned to manufacture the largest naval ship ever built in South Africa, the S.A.S Drakensberg and from 1987 – 2002, they produced 14 mega luxury yachts. As well as taking on prolific commercial contracts, SAS also serve smaller, niche marine organisations. For instance, they conducted extensive repairs to the Subhiksha, an offshore tug that was ravaged by fire and requiring a new engine, propellers and over 15km of wiring. Similarly, research vessel Save Our Seas underwent phenomenal procedures to increase the size of the ship and modernize on-board equipment.
Of course, such feats would be impossible without a highly skilled and dedicated workforce and investment in their employees is a paramount tenet for SAS. Under the company’s Work Place Liaison Committee Scheme, employees own 12% of the company and so have the ability to participate in company decision making. Recognising the extreme shortage of skilled workers in Africa, since 2008 SAS have also implemented an Apprenticeship Scheme in which young Africans can gain knowledge, experience and work towards specialised trade qualifications. The company have so far taken on 42 apprentices in various sectors of the business, with 21 qualifying as artisan boilermakers and electricians. Even more impressive is the fact that within such a labour intensive and male-dominated arena, 8 of these apprentices were women.
Such a proven track record of excellence within the industry perhaps made SAS the obvious selection for the Transnet contract, especially since these two parties already have some history together. Between October 2007 and July 2011, SAS built and furnished 7 Voith Schneider Tug Boats for Transnet, not only meeting but exceeding the specifications and expectations of the client. As such, this second collaboration between SAS and Transnet attests to the shipbuilders’ trusted reputation for providing high quality wares, but also to how they strive to foster mutually beneficial relationships with other sectors and organisations with vested interests in the shipbuilding industry.
The contract came about as a necessary response to the growing influx of large vessels visiting African ports including Durban, Richards Bay, Post Elizabeth and Saldanha Bay. As such, there was a crucial need to replace and upgrade the current fleet of tugs, which were becoming increasingly inadequate and obsolete for safely manoeuvring incoming ships into anchoring position. As bidding closed for the new Transnet contract in December 2012, SAS stood victorious over a host of other international companies, with actual work beginning in August 2014 and due to last just 42 months. The deal worth an unprecedented R1.5 billion; the largest contract ever awarded to an African harbour-craft construction business; will see the production of nine state-of –the-art tug boats which will be both bigger and more powerful than any of the 29 tugs currently in use by Transnet. According to Eugene Rappetti, Transnet’s Project Manager, the new tugs will benefit from the latest technology which will allow them to change direction whilst actually moving, giving ultimate manoeuvrability and reducing docking time. Furthermore the new tugs will be able to drag double the weight of the current vessels, with the largest of the fleet having a maximum bollard pull of up to 100 tons. This particular tug will also be one of the largest of its kind in existence. As of May 2015, the project is 11% underway, with the first tug 35% completed and its hull and superstructure 70% finished. With 5 tugs being manufactured simultaneously at any one time, SAS hopes to deliver 1 vessel every 3 months until completion, with the first due in January 2016.
Pivotally, not only will this project help to increase and strengthen African Sea Trade routes, but there are also extensive ramifications for the wider community and shipbuilding industry. Prasheen Maharaj, the CEO of SAS has disclosed that the contract will inject an estimate R800 million into the local economy, with the creation of up to 500 direct jobs and a further 3500 indirect jobs. This stems from the fact that 60% of the ships’ components will be locally manufactured by allied industries and the other 40% outsourced from other international organisations. 700 tons of steel have been ordered and several subcontractors have also established premises at the shipyard including Caterpillar, Siemens and local business, Bradgary Marine Shipfitters. SAS and Transnet are also dedicated to widening the opportunistic reach of the project to young people, particularly women, through the imposition of up to 60 apprenticeship places. Transnet employees have been offered project specific training within the vicinity of the yard 4 – 6 weeks before they begin work on the tugs and they have even sent staff to Germany and Norway for specialised technological training. Furthermore, Transnet are funding training for engineers and deck cadets, so that the new vessels have expert crew when they are delivered. Thus, the SAS shipyard may be the hub of industrial activity, but the ripples of this contract are being felt far and wide. Maharaj proudly asserts that ‘[The contract]’ is a real demonstration of how the maritime economy can be used to unlock the economic potential of South Africa… Our country definitely has the skills and capacity to succeed in sectors such as marine transport and manufacturing, ship building and ship repair’.
Such a statement is increasingly ringing true for SAS, for since the inception of the Transnet contract, a wave of other prolific business deals have been struck. In November 2014, the company were entrusted with major engine refits to a South African Navy ship, the S.A.S Amatola and they are currently in talks to acquire 6 other Navy ships to work on. Furthermore, in April 2015, SAS joined forces with the world’s largest shipbuilding group, China Shipbuilding Trade Company, amalgamating their experiences and expertise to become a maritime industry powerhouse.
With their superior work and reputation hauling in interest on both a national and international scale, SAS is nothing if not a quintessential example of an African company sailing towards success.