PORT OF SALDANHA West Coast Business Chamber CONFIDENTIAL Contents • Objectives & functions of Authority • Aims of Authority & Cooperative Governance • Agreements terminals & facilities: S56 • S56: Off-shore Supply Base Short, medium, long term views • 1 Objectives & Functions: National Ports Act, Act 12 of 2005 • Promote the development of an effective and productive ports industry that is capable of contributing to economic growth & development of the country • Promote and improve efficiency and performance in the management and operations of ports • Enhance transparency in the management of ports • The Authority must ensure that adequate, affordable and efficient port services & facilities are provided • Promote measures designed to advance persons from the designated groups in the operations of facilities in ports (BBBEE) • The Authority may undertake activities within the port that encourage and facilitate the development of trade & commerce for economic benefit and in the interest of the national economy • The Authority may encourage and facilitate public and private sector investments and participation in the provision of port services & facilities 2 Aims of Authority & Co-operative Governance The Authority must aim to: • Remain financially autonomous • Satisfy all reasonable demands for port services and facilities Give effect to the principles of co-operative governance as contemplated in Chapter 3 of the Constitution – all organs of state must co-operate with one another in order to: • Minimise duplication of functions • Conclude MOU’s • Gazette MOU’s 3 Agreements in port operations and services: s56 The Authority may enter into an agreement to authorise • Design, construct, rehabilitate, develop, finance, maintain, or operate a port terminal or port facility or provide a service relating thereto • Monitor and review performance • Perform an oversight role – compliance issues 4 Focus: Short, medium & long term • LPG: Sunrise Energy and Avedia Energy • Iron ore expansion • S56: Oil & Gas Supply Base • S56: Oil & Gas Service Centre: Terminal (incl Mossgas quay) • S56: Floating Dock/s • S56: Bunkering, blending, mud & meg plants, bitumen, chemicals • S56: LNG facility • Saldanha IDZ • EIA’s: Fatigue – stakeholder buy-in 5 Saldanha Bay – Short Term Layout Oil Supply Base Semi/Submersibles Jack-up rigs PAGE 6 Saldanha Bay – Medium Term Layout Dedicated liquid bulk petroleum products Container terminal PAGE 7 Current view of areas impacted by S56 offshore oil & gas service centre PAGE 8 Saldanha Bay – Short Term Layout Aerial view of Sea & Land area: Port of Saldanha PAGE 9 FACILITIES OVERIEW : MOSSGAS QUAY Aerial View of Mossgas Facilities PHOTO IMAGE : RIG SEDCO 709 (2006) TRANSNET PAGE 11 PHOTO IMAGE : RIG CELTIC SEA (2011) TRANSNET PAGE 12 PHOTO IMAGE : RIG BEN AVON (2012) TRANSNET PAGE 13 Ship Repair: Off-shore Oil & Gas Service Centre • Numerous benefits of jointly executing the Iron Ore Expansion and Ship Repair (focused on the off-shore Oil & Gas sector) Service Centre projects • The new berth for Iron Ore exports and the berth for accommodating submersible and semisubmersible rigs and or a floating dock are adjacent to each other – joint construction and dredging work will contribute to cost savings on both projects • The two projects can compliment each other during the EIA process • A submission to proceed on a section 56 process in respect of establishing a Ship Repair offshore Oil & Gas sector Service Centre is awaiting CE approval • Developments in focused on the offshore Oil and Gas sector along the west coast of Africa is creating urgency to this project • This project forms part of SIP5 • The project hold benefits for the South African economy as well as that of the West Coast – creating jobs, improving skill levels, improving the living conditions of local communities, multi-plier effect of growing various industries • Can also support the growth and development of other port related business – ie bunkering services 14 S56: Off-shore Supply Base • Following the withdrawal of UAL from entering into a lease agreement with TNPA – in principle lease conditions of Transnet not acceptable to UAL – a fresh process needs to be embarked on • In accordance with the National Ports Act the S56 process provide for the establishment of a port facility such as the planned Off-shore Supply Base aimed at serving the off-shore Oil & Gas industry • The TNPA Infrastructure and Light House workshops have been relocated freeing up back of quay area to form part of the Terminal to be establish in accordance with a S56 process • TNPA is continuing with repairs/refurbishment of the quay and filling in the gap between the two quay – this will provide for a quay of 210m that will be more effective and safe than two small separate quays • The quay will be operated on a common user basis and will therefore not be included in the S56 process • A submission to the CE will be completed by end February seeking authority to proceed with a S56 “Requests for Proposal” process 15 Questions 16