Big boost for boat building industry

Boat-Building was a developing sector in the ocean economy that could support the objectives of industrial growth, especially with a R1.4 billion tender being awarded to the local industry, Trade and Industry Minister Rob Davies said on Thursday. Davies was speaking at the naming ceremony of one of two locally built offshore supply vessels worth R150 million at the Table Bay Harbour. He said the boat-building industry had been identified since 2011 as a growth area. “We have secured as a result of our designation – which means all public procurements of work vessels will have to have a 60 percent South African component – a tender of R1.4 billion awarded for local shipbuilding. That is what we try to encourage – more local shipbuilding operations. We do see these have job-creation capabilities,” he said.

With the R150m contract, Smit Amandla Marine had partnered with Damen Shipyards Cape Town to build two new vessels, which would carry out supply and support work for the De Beers Group’s offshore diamond mining activities in Port Nolloth. Smit Amandla Marine decided to build the two vessels locally as part of their obligations in the National Industrial Participation Programme, which is an offset programme aimed at building local industrial capabilities. One of the boats was yesterday named Aukwatowa – the historical name for Port Nolloth, meaning “where the old man was washed away”. Davies said: “We have seen for some time as government the importance of the ship-building industry in South Africa. It has a value chain which includes about 2 000 jobs in actual shipbuilding and a little bit more than that in component manufacture. “We’ve identified... that we have an opportunity to more or less triple the number of people employed, as well as the contribution to GDP between now and 2033 from the oceans economy, and one of the sub-sections of that is boat- and shipbuilding.”

Smit Amandla Marine managing director Paul Maclons said: “While it is often more cost-effective to build these vessels in the East, it made sense to explore other options and support client and country priorities, with our company investing significantly into the local economy. “The synergy between all roleplayers is reflected in the shared commitment to ensuring that this project derives maximum benefit for South Africa in growing and transforming the maritime industry.” De Beers Group Services South Africa chairperson Craig Coltman said the operation in Port Nolloth had plans for community and small business development in place. “The mining vessels deliver ongoing value for the... government of Namibia and the De Beers Group. The contract to build two new supply launches demonstrates the strong partnership between De Beers and Smit Amandla Marine to ensure we have a sustainable business benefiting Namibia and the west coast of the far Northern Cape for today and the future.” Damen Shipyards Cape Town chairperson Sam Montsi said the vessels had been built within budget and times agreed.