Marine Sector Opportunities in South Africa

An Expert's View about Ships, Boats in South Africa

Posted on: 5 Oct 2010

The maritime industry is a robust and active sector. Barriers to entry are low and the industry is starting to grow again after being affected by the economic downturn.

Sector briefing Marine Sector Opportunities in South Africa Why South Africa? The South African maritime infrastructure is well developed and is subdivided into five main categories: ? Building of boats ? The manufacture and trade in engines and engine systems ? The manufacture and trade in marine equipment and accessories ? Consumer goods and services for vessels ? Business goods and services for management of vessels The maritime industry is a robust and active sector with 75 boatbuilding concerns in South Africa, 42 of which are located in the Western ?Transnet is currently Cape. Barriers to entry are low and the assessing proposals for a industry is starting to grow again after being business plan to set up a ship affected by the economic downturn. repair facility? South Africa manufactures 28% of the world?s catamarans in sizes ranging from 30-40 ft, thus cementing their position as a key international player. Catamarans, both power and sail, are the South African leisure boat industry?s largest export sector. South African ports handling on average 13,500 vessels which carry on average 515,2 million tons of cargo a year. UK Trade & Investment Sector briefing: Marine Sector opportunities in South Africa auditing requirement to attain certification. Opportunities This has highlighted an opportunity as the industry needs to address skills training and About 70% of South Africa?s boat builders are skills retention. located in the Western Cape namely Cape Town, while the rest are situated in Ship Repair Durban and Port Elizabeth. It is estimated that 85% of production is exported with the main South Africa has ship repair yards at Saldanha export market being the USA and the Bay, Cape Town, Simons Town and Durban Caribbean. with smaller capabilities at Port Elizabeth and East London. Fishing has a significant place in Boat-building the economic activity of the Cape Town port, affecting the ship repair industry in particular, The major subsectors of the marine industry is with large Asian fishing fleets using Cape Town the boat/ship building and repair sectors. The as a transhipment logistics and repair base for latest figures obtained were for 2008 where it much of the year. The Cape Town ship repair is estimated that the core boat-building and engineering sector are also targeting industry in the Western Cape produced in the servicing the oil and gas industries off Africa, vicinity of £180 million worth of boats, with which has become a significant factor for the exports comprising in the region of £108 port?s repair and maintenance facilities. Due to million, i.e 60% of total turnover. an increase of vessels going round the Cape to avoid Somali seas, the government parastatal Barriers to entry are relatively low and the Transnet is currently assessing proposals for a industry has seen an increase in the number of business plan to set up a ship repair facility. new entrants in recent years. The domestic However at the time of going to print no market for boat builders is generated by decision has been taken whether a facility government contracts (South African Navy, law would indeed be established or where it would enforcement, fisheries patrol, harbour services be situated. Source Business Report newspaper and maintenance etc.), tenders, inshore fishing April 14,2010 industry, the commercial diving sector and the offshore natural gas and diamond mining If you have any questions on the opportunities industries. There is a strong likelihood of above, contact the UKTI contacts named in this demand emerging from other African markets. report. Business opportunities aimed specifically at UK companies are added daily to The sector has two committed industry bodies, UKTI?s website. These leads are sourced by our the South African Boatbuilders Export Council staff overseas in British Embassies, High (Sabbex) www.sabbex.co.za and the Cape Commissions and Consulates, across all sectors Town Boatbuilding and Technology Initiative and in over 100 markets. (CTBi) www.ctbi.co.za ? both based in Cape Town. You can be alerted to business opportunities on a regular basis by registering on the UKTI Ship Building website. More on UKTI?s business opportunities service Due to the Western Cape?s historical geo- strategic maritime position, ship building and repair activities have been long-established. There are opportunities in ship-building due to the increased demand along the west coast of Africa for small and medium craft such as tugs and harbour vessels. Steel fabrication is the major concern in being competitive in such craft, however designs and engines are sourced internationally. Over the years a variety of ocean going vessels have been built in South Africa as well as renowned luxury motorised yachts. Although South Africa has been building quality yachts for some years, the enforcement of international quality standards adds an additional control and UK Trade & Investment Sector briefing: Marine Sector opportunities in South Africa Major events and activities UKTI contacts National Boat Show Sandra Warne [www.nationalboatshow.co.za] Trade & Investment Adviser Contact: Lyn Solomons British Consulate ? Cape Town Email: lyn.solomons@fco.gov.uk Tel: (0027 21) 405 2420 Time: 13-15 August 2010 Email: sandra.warne@fco.gov.uk www.ukti.gov.uk Cape Town International Boat Show [www.boatshow.co.za] Lyn Solomons Contact: Lyn Solomons Trade & Investment Officer Email: lyn.solomons@fco.gov.uk British Consulate ? Cape Town Time: 08-10 October 2010 Tel: (0021 21) 405 2420 Email: lyn.solomons@fco.gov.uk Find full details of all events in this www.ukti.gov.uk country and sector on the UKTI website. New export events are added daily to the site and you can register to be alerted to them on a daily, weekly or monthly basis UKTI?s Tradeshow Access Programme (TAP) provides grant support for eligible Small & Medium Sized Enterprises (SME's) to attend trade shows overseas. Find out more about UKTI support for attendance at overseas events UK Trade & Investment Sector briefing: Marine Sector opportunities in South Africa Next steps - How UKTI can help ? Arranging appointments British companies wishing to develop their ? Organise seminars or other events for business in the South African market are you to meet contacts and promote your advised to undertake as much market research company in the Chinese market and planning as possible in the UK. UKTI?s team in South Africa, with its wide local This work is available via our Overseas Market knowledge and experience, can provide a Introduction Service (OMIS) a chargeable range of services to British-based companies service which assists British-based companies wishing to grow their business in global wishing to enter or expand their business in markets. overseas markets. This can include: To find out more about commissioning this ? Provision of market information work, or accessing other UKTI services and ? Validated lists of agents/distributors specialist advice, please visit the UKTI website ? Key market players or potential to find contact details for your local UKTI customers in the Chinese market office. ? Establishment of interest of such contacts in working with you Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Marine Sector opportunities in South Africa
Posted: 05 October 2010