OPCSA
presentation to
Portfolio Committee on
Minerals and Energy
Background
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Minister of Minerals & Energy identified shortcomings in oil pollution control
OPCSA was transformed into its present format during October 2002
OPCSA started to operate on 1 April 2003 as a subsidiary of CEF
During 2004 the CEF Board expressed its concern regarding the loss that
OPCSA was incurring
A market survey was conducted to determine the need, if any, for oil pollution
response services in SA
A strategic planning session, attended by the Board, was held on 28&29 January
2005 to discuss the findings of the survey and determine the way forward
Entities Surveyed during Market Survey
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National Ports Authority
Department of Environmental Affairs and Tourism
South African Maritime Safety Authority
BP
Engen
PetroSA
Sapref
Sasol
Shell
Smit Marine
Total
Various Independent Environmentalists
Harbour Masters in Saldanha, Cape Town & Durban
Key findings of Market Survey
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Marine experts reported that South Africa has a very hazardous
coastline
The biggest risk for an oil spill appears to be bunker fuel
South Africa has no real tier 3 response capability
In most instances the tier 2 response capability is also suspect
Overseas response is available, but only after more than 36 hours,
which is too late
Key findings of Market Survey
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OPCSA’s capability is larger than all the other players in South Africa put
together
OPCSA is the only player that can clean up a spill on the open sea
OPCSA is the only organisation that can easily develop a tier 3
capability
All respondents lamented the fragmented nature of current oil spill
legislation
Most respondents were unaware of OPCSA’s capabilities
Demand for OPCSA
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Opportunities in other harbours to provide a response service
Offshore oil rig protection
Bunker fuel spills in most harbours
Most of the respondents reported that OPCSA must develop a National
response infrastructure
Locations where OPCSA should establish response capabilities:
• Cape Town
• Mossel Bay
• Port Elizabeth
• Richards Bay
• Durban
SWOT Analysis - Strengths
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Largest player in South Africa
Existing well maintained equipment and facilities
Highly skilled staff
Only offshore capability in SA
Responsiveness
Proximity to market
Continuous experience
Proven track record
Knowledge of coastal and local conditions
SWOT Analysis - Weaknesses
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Not sufficient funds
No presence in other ports
Lack of marketing
Concentrated skills basis
Transformation/employment equity at senior level
SWOT Analysis - Opportunities
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OPCSA is well placed to act with full Government authority
Big market opportunity if we move fast
Alliances with international Oil Pollution Response entities
Getting buy-in and involvement of all role players
Green donor funding and support
Provide DEAT with certificate after event
OPCSA sets standards with SABS
SWOT Analysis - Threats
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Liability
Industry apathy/complacency
Low risk perceptions
“Overseas will provide” myth
Vision of OPCSA
To be the cost effective State designated oil spill response organisation
for large oil spills on land and sea in SA, and to be the service provider of
choice for smaller spills and oil pollution measures in Sub Saharan Africa
Mission of OPCSA
The vision will be achieved through the provision of a cost effective rapid
response service in cases of emergency on land and sea, supplemented by
the delivery of continuous prevention, consulting and training services of the
highest quality, in line with customer requirements.
Goals of OPCSA
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To be the designated oil spill response entity in South Africa
To build capacity to deliver on its mandate to re-act cost-effectively to all tier
2 & 3 spills in SA
To be self funding in 5 years
To become a recognised and esteemed brand in maritime oil spill response
To have a 90% share of the oil spill control market in SA
To operate on a supplier of choice basis in 2 Sub Saharan African countries
in 4 years
Where must OPCSA be housed?
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DME already has a close relationship with the Oil Industry
All the products handled by the Oil Industry will have a negative
environmental impact when spilled
Oil pollution control is important to the image of DME
DME’s relationship can be expanded and strengthened if oil pollution
control is included
The above will ensure a single point of responsibility on all crude oil related
activities
OPCSA provide management services to SFF, another subsidiary of CEF
Recommendation to remain a subsidiary of CEF
Major Challenges
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Current legislation is confusing and does not provide enabling framework
that is needed for rapid oil spill response
There is no integrated oil spill contingency plan
Apparent reluctance/complacency of certain role players in the oil
industry
Myth that South Africa do not have an oil pollution risk
Main Features of Business Plan
OPCSA must :
• become the designated national oil spill response organisation
• expand its tier 3 capabilities
• expand to the ports identified
• expand its commercial market
• embark on a major employment equity plan
CEF Board Approval
The CEF Board :
• Recognized the oil pollution risk in South Africa
• Approved bridging finance for the next Financial year, in the interest of
South Africa, to enable OPCSA to become self sustainable
Deployment of boom around Tanker
Oil vessel with Oilfence boom employed