Local is lekker in the ship-building world‚ thanks to a R10bn naval procurement package destined for South African shipyards. This was the message from two of the country’s top ship-building bosses tasked with building six new patrol vessels — three inshore‚ three offshore — and a hydrographic survey ship.
Cape Town-based Damen (the patrol vessels) and Durban-based Southern African Shipyards (the hydrographic vessel) have been confirmed as preferred bidders for Projects Biro and Hotel‚ collectively the biggest defence procurement package since the now infamous "arms deal".
But unlike the navy’s four frigates procured nearly 20 years ago at a cost of about R7bn‚ the patrol vessels are generally considered a better deal in that they are more suited to SA’s coastal needs. They will also be constructed in local shipyards‚ providing a much-needed boost to the ailing local industry.
Sam Montsi‚ shareholder and chairman of Damen Shipyards Cape Town‚ said the new vessels were good news, both for the navy and the local industry.
"We have programmes to ensure these projects deliver not just world-class vessels to enable the navy to meet its mandate, but also result in enhanced local skills‚ technology transfer and supplier development. The ‘blue economy’ provides a fantastic opportunity to help grow our economy and, of course, create employment," Montsi said. "Protecting our shores with quality vessels is mandatory if we are to preserve ocean resources for our people and facilitate their taking full advantage of what the oceans have to offer."
Southern African Shipyards CEO Prasheen Maharaj‚ whose company is mid-way through building a fleet of nine tugs for the Transnet Ports Authority (TNPA)‚ said the Biro and Hotel projects would create desperately needed jobs and help develop a local BEE supply chain — as envisaged in the government’s Operation Phakisa development programme.
"We look forward to continuing with our proven track record of excellence by delivering on time and within budget, as we have demonstrated with the recent TNPA tug project‚" he said.
It remains unclear whether the preferred bidders will be required to include state armaments company Denel in the lucrative deal, following widespread speculation in this regard. Neither the companies nor Armscor would comment on the matter.
In a statement, Armscor said the companies had been appointed "subject to the successful negotiation of detailed technical and commercial conditions with the aim of arriving at a contracting position for the execution of the respective projects".
Last year, Denel entered into a memorandum of understanding with Chinese defence company Poly Technologies‚ aimed at developing its maritime capability. The firm has dismissed speculation that the move was geared towards acquiring a stake in the latest naval procurement deal.
"Partnerships as a means of developing a new capability or having a foothold in new markets have historically formed a critical part of the group’s strategy to grow our business for long-term sustainability‚" Denel told the Sunday Times last year. "However‚ as there is no agreement in place with Poly Technologies‚ it would be extremely premature to respond to questions that seem to assume a done deal."
TMG Digital/TimesLIVE
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