Shipbuilder sees industry as vital to economy

SOUTHERN African Shipyards would pursue shipbuilding contracts worth more than R6 billion over the next five years as it continued its drive to revive the industry in the country, Don Mkhwanazi, the chairman of the company, said yesterday Mkhwanazi, who was speaking at the launch of Transnet's latest harbour tug, Pholela, said the strategy was to bring the shipbuilding industry into the national agenda and to align it with economic policies aimed at eradicating poverty, creating jobs, increasing skills and attracting fixed investments.
Though the shipbuilding firm has submitted a R110 million bid for Namibian tugs, the majority of the work expected over the next five years would come from South Africa.
Prasheen Maharaj, the chief financial officer at Southern African Shipyards, said the firm expected a decision on the Namibian contract next month.
"The big ones (contracts) will be coming from South Africa. From the SA Navy, we expect tenders to be out for tug boats, hydrographic vessels and patrol vessels," Maharaj said.
"We also expect the SA Maritime Safety Authority to order two tugs and this is all expected to happen within the next five years."
The Pholela was built for Transnet and will be used at the port of Durban. It is the fourth of seven tugboats that were ordered by the state-owned enterprise three years ago. Two of the tugboats that were delivered last year went to the Port of Ngqura.
There are still three more to be built with one expected to be completed later this year while the remaining two will be launched next year.
Maharaj said the Transnet contract, which was valued at more than R600 million, assisted in building a platform on which to grow the company and train more skills for the industry.
Southern African Shipyards employs 400 people and it has trained 38 apprentices. It has an annual turnover of R250m.
"Everything was done in South Africa by local people. But we had to import the mechanical work like engines, generators and propulsion systems from Europe. The biggest thing about this industry is that it has a huge multiplier factor, because for every one direct job, you create seven others through subcontracts and suppliers," Maharaj said.
"Though some of the jobs are on contract, they go on for a long time. The Transnet contract began in 2007 and we still have three more tugs to build. It takes about 18 months to build one ship, so the jobs are available for many years," he said.
Ricky Bhikraj, the manager at the port of Durban, said the Pholela would become the ninth tugboat at the harbour.