Monthly Maritime News Roundup - July 2020

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NEWS ROUND-UP JULY 2020

INSIDE SHIPPING A lifeline extended for crew change EEN MARINE PEOPLE Maritime Industry puts the H in HSE during COVID-19 pandemic Addressing community challenges in Saldanha Bay FISHING / AQUACULTURE DEFF confirms readiness to proceed with FRAP Major investment aims to boost aquaculture Marine Tilapia project included on strategic infrastructure list A focus on fishing PORTS No general rent relief from port authority Addressing port congestion in Durban New straddle carriers assembled and ready for operations New reach stackers for Durban Virtual consultations wrap up with stakeholder input Large vessel caller for Cotonou OIL & GAS Cairn exits Senegal offshore oil field International training to promote local skills in oil and gas BLUE ECONOMY Streamlining maritime governance SECURITY Kenya moves to develop a maritime security strategy Pirates attack oil production vessel off Nigeria

With COVID-19 travel restrictions impacting on the availability of Polish engineers to oversee the assembly of four new-generation straddle carriers destined for the Cape Town Container Terminal, local resources were successfully accessed to assemble and test the equipment which has now been handed over to Operations.

See story on page 10

MARINE ENGINEERING New research aims to support marine manufacturing in South Africa Workboat delivered to SANDF special forces

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PEOPLE AND EVENTS

A long-term impact

Maritime industry puts the H in HSE during COVID-19 pandemic

Although the future remains unclear in terms of how COVID-19 will play out, the pandemic has unequivocally thrust health and safety into the spotlight and helped address any complacency within the maritime sectors.

SOUTH AFRICA: Session 5 in the Maritime Industry Dialogue series may have highlighted the challenges currently being faced by the maritime sectors, but it also emphasised how companies are implementing effective health and safety protocols within workplaces as diverse as vessels and shipyards.

Webinar attendees received the full benefit of the experience of health and safety (HSE) experts from AMSOL, Bourbon and Damen Shipyards Cape Town who joined the panel to delve into how the HSE space has evolved during the COVID-19 pandemic.

Since the onset of the crisis, HSE professionals have had to source, digest and assimilate a vast amount of information into their workplaces within very short timeframes.

“There is obviously an additional workload that comes with COVID-19, but as HSE professionals we do have an extensive toolbox to fall back on,” confirmed Terry Spreeth, SHEQ & Compliance Executive at AMSOL. Ann Till, Head of Operational Excellence/Group COVID-19 Coordination Officer at Bourbon, agrees and outlined a number of the resources and organisations that she has tapped into including the International Maritime Health Association.

“There is a wealth of information tailored for the maritime industry and while we are not medical professionals, it has been useful to receive guidance from our partners as well as available information papers,” says Till who admits that there is currently a heavy work load for HSE individuals.

Hermoine Manual, QC manager at Damen Shipyards Cape Town described how simple and cost-effective protocols have transformed the company’s operations in the Port of Cape Town. During the first week or two of returning to work, she confirms that the decision to operate at a reduced capacity of about 25 percent impacted on the company’s ability to implement a number of

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these practices.

“This provided us with the opportunity to see how we could streamline and optimise the workers in the yard and how staff could be divided within the different workspaces,” she said adding that the size of the vessel that they are currently working on under Project Biro did allow for the social distancing.

Over and above the very noticeable shift amongst staff to adhere even more stringently to safety protocols, all of the contributors to the panel agreed that there were some changes that they hoped would remain in place and continue to improve health and safety in the longer term both at sea and ashore.

She noted, however, that planning of production activities has necessarily become a lot more detailed and a lot more stringent during these times.

“We have seen a decrease in safety-related incidents as a result of increased awareness amongst staff and employees and we see that at our subcontractors who we visit too. That heightened level of awareness of safe working procedures will help sustain a safety culture in the workplace,” says Manuel who hopes to maintain some of the protocols that have impacted positively on operational planning, highlighting specifically the benefits of a stricter visitor regime.

Putting the H in HSE Without exception all of the panellists agreed that COVID-19 era has resulted in a renewed focus on the “health” aspect of health and safety.

“There is certainly a better appreciation of the HSE function within the workspace,” comments Manuel who explains that her team has become the go-to place for employees with any concerns or questions about COVID-19. “There has been a really big drive to emphasise the support we can lend to the employees and to show them that their health is a number one priority,” she added.

For Till, the renewed focus on issues relating to seafarer fatigue, access to internet and overall seafarer welfare, needs to ensure a future where these concerns are actually tackled. “COVID-19 has been useful in highlighting the effects of fatigue of crewmembers at sea,” she said adding that crew contract lengths need to be addressed as part of a future that she hopes will continue to focus on the human factor.

Spreeth echoed Manuel’s observations about the role of HSE and noted that a similar evolution at AMSOL where the focus was on looking after the staff and showing that they cared about their well-being not only at work, but within their communities.

“There has also been a conversation about the need to improve internet and communication on board during this time. If we could see increased crew connectivity on vessels coming out of this, that would be a great bonus,” she added.

“HSE has been taken out of the cupboard and is being seen as integral to the entire company,” says Till.

Noting the major disruption within the maritime transport space caused by COVID-19, Till emphasises the need to maintain the elevated awareness of HSE throughout the industry.

It has also been a time where workplaces have been redefined as some members of staff are being encouraged to work from home while others return to company premises.

A certain disconnect can creep into teams during these times, and the panellists confirmed that the conversations around mental health and well-being as well as resilience are now part of the job description of the HSE professional.

Collaboration for improved health and safety Working within a scenario where new information is constantly being made available about the disease,

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INDUSTRY DIALOGUE JULY 2020

“We have seen a decrease in safety-related incidents as a result of increased awareness amongst staff and employees and we see that at our subcontractors who we visit too.

That heightened level of awareness of safe working procedures will help sustain a safety culture in the workplace,” all three panellists emphasised the need to collaborate and offered their experience to those that may be struggling to address workplace challenges within the COVID-19 scenario.

“It has been a learning curve for us all,” admitted Manual who added that companies with dedicated HSE functions had an advantage in reacting more quickly to the evolving situation. “We have streamlined ourselves a lot quicker than some of our smaller counterparts, but because this is something that is affecting all of us, we are offering advice and sharing lessons with others,” she said encouraging stakeholders to work together.

Spreeth echoed her sentiments and emphasised the need to put the basics in place. “It is not that complicated to put the basics in place.

Yes, it may cost more, but people’s lives are at stake,” she said.

For Till, the answers are available to everyone that is willing to engage.

“Look at what other companies and people are doing. Sometimes it can be the simplest of things that can make a big difference. Everyone is learning as we go along,” she said.

The Maritime Industry Dialogue sessions were initiated through a sponsorship by AMSOL and are hosted by Maritime Review Africa.

The initial six sessions have recently been renewed for a further six sessions that will tackle more topical conversations of relevance to maritime stakeholders at this time.

Join the online digital disucssions we are having with the industry by liking our page on Facebook for updates or following us on LinkedIn or Twitter.

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MARINE ENGINEERING

FISHING

said Creecy.

New research aims to support marine manufacturing in South Africa

DEFF confirms readiness to proceed with FRAP

Minister Creecy said the rights allocation process is a first step to formalising and developing small-scale fishers who even before the Covid-19 Pandemic, faced enormous inequality, insecurity and barriers to economic participation.

SOUTH AFRICA: Addressing parliament this month, Minister Barbara Creecy confirmed her department’s readiness to undertake the Fishing Rights Application Process as well as the imminent issuing of 15-year fishing rights to small-scale fishers.

“The revised period for the commencement of the 2020/21 FRAP process for the granting of commercial fishing rights was published on the 26th June 2020 for comments,” she said explaining that the project plan has been revised to meet the new deliverables and timeframes.

SOUTH AFRICA: Research commissioned by the Department of Trade, Industry and Competition (dtic) with the support of the Industrial Development Corporation (IDC) is being undertaken to assist the government identify opportunities and support the marine manufacturing sector.

Recognised as a potentially significant contributor to economic development as well as employment, the research aims to analyse supply chain opportunities as well as identify current challenges inhibiting growth in this sector of the marine industry.

“Our aim is to support the growth of marine manufacturing and promote exports,” says Bianca Mokuena of the dtic adding that, without reliable data, it has been difficult for the department to understand the drivers that will accelerate growth.

The department is seeking to design specific interventions in boat and ship building and the related supply chain to promote increased localisation.

According to the new timelines applications for fishing rights will only open in February next year and adjudication will take place from the middle of May to the end of November.

the sector.”

The success of the project, however, relies on the willingness of the larger stakeholder base to provide company and production-related information. “We understand that there may be some initial reluctance to participate, but hope that the long-term benefit of working collaboratively to create relevant data that translates into interventions that supports localisation, growth and transformation will motivate a wider involvement,” says Andrew Mukandila of the dtic.

Creecy confirmed that a call for service providers to assist with the process would be issued shortly. “FRAP is an important process and (these) service providers will help ensure that the process has transparency and accountability – and ultimately will be seen to have integrity,” she told media ahead of the parliamentary presentation.

“The fishing sector remains a significant contributor to food security and the economy. Stabilising the sub-sector through the allocation of longer-term fishing rights is critical to attracting investment into the industry,” she said.

Part of the research will also assist the South African Boat Builders Export Council (SABBEX) submit country data for inclusion in the International Council of Marine Industry Associations (ICOMIA) annual global statistical analysis for recreational boating.

Small scale fishing The department will issue 15-year fishing rights to small scale fishers in the Western Cape later this year.

“It will, for the first time, mark the completion of the Small-Scale 15-year Rights Allocation Process to over ten thousand five hundred fisher men and women organised into 110 co-operatives nationwide,”

“This will be an important milestone for the marine leisure industry in South Africa,” confirms Vanessa Davidson of SABBEX, who is supporting the research project.

Appointed as lead researchers, Kaiser Economic Development Partners (Kaiser EDP) has significant experience in researching aspects of the Ocean Economy. Kaiser EDP has worked extensively on projects concerned with examining and analysing trade data, identifying trade opportunities, as well as designing export development strategies and support models.

“We urge industry players to participate and to circulate the survey to their suppliers so that we can ensure extensive reach along the marine manufacturing supply chain. The more data we can gather from this complex supply chain, the better positioned we will be to engage government on meaningful economic support mechanisms,” she adds.

“We are working closely with industry stakeholders to ensure that we gather relevant data that translates into meaningful benefits for the industry,” says Michelle de Bruyn, Managing Director of Kaiser EDP. “In addition we have been mandated to ensure that the project includes the development of a tool that will allow ongoing data collection from

Forming part of the industry reference group to provide guidance at the outset of the project, Patrick Kamerman of Damen Shipyards Cape Town and Peter Giliam of Robertson and Caine have expressed their willingness to support the initiative that could assist in improved localisation of their supply chain as well help government better position sector interventions.

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Aquaculture The Minister said of crucial importance at this point in time was the stablisation of the Aquaculture sector and the 4,875 jobs it sustains.

“In this regard we are finalising consultations on the Aquaculture Bill so that we provide policy certainty without over-regulation. We hope to bring this Bill to the house next year,” she confirmed.

Addressing the impact of COVID-19 on the markets for aquaculture products, the Minister noted that South African products were facing competition from cheap imports.

“Our team is currently working with the DTI and the industry to identify and secure new international and domestic markets,” she added.

Resource management Creecy also highlighted the need to secure and protect domestic fish stocks and reported that plans to deploy 300 catch data monitors along the coastline are due to be put in place during the year.

“High quality scientific information to inform management decisions is the cornerstone of sound fisheries management. Under tight resource constraints the department must rebuild this capacity in partnership with other branches, the industry and tertiary institutions,” she said adding that the next step will be to undertake a marine and coastal sectoral threat, risk and opportunity analysis to inform where we should focus at a strategic and operational level.

Highlighting recent successes in combatting illegal harvesting of marine resources, she reported that more than R13 million worth of illegal catches have been confiscated.

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No general rent relief from port authority SOUTH AFRICA: Despite the fact that many port leaseholders were unable to open their doors during Level 5 and only able to unlock premises and production on a limited basis in Level 4 of the national lockdown imposed to curb the spread of COVID-19, Transnet National Ports Authority (TNPA) is not offering rent relief to the hundreds of businesses that occupy port premises.

Although willing to engage with port users impacted by the COVID-19 lockdown, Ricky Bhikraj, Acting GM: Commercial & Real Estate at Transnet National Ports Authority says; “As a division of Transnet SOC Limited and a Regulated Port Authority, TNPA is not in a position to subsidise the impacts of COVID-19 on port tenants. Tenants are encouraged to explore the various support packages offered by Government under the national disaster regime.

We not only supply Offshore Support Vessels, we also provide vessel crewing solutions to the Offshore Shipping Industry.

“We value the relationships with our tenants and our officials have been engaging with tenants regarding rentals on a case-by-case basis. We continue to explore options that do not negatively impact on port sustainability in order to soften the blow for tenants who were in good standing up to the onset of the COVID-19 lockdown,” he added.

Rental relief has been a conversation that extends beyond port limits and many port leaseholders will have watched how other landlords have responded to the plight of their tenants. Shopping centres have worked with their tenants to reduce rents and even private citizens that rent out property have managed to pass on rental relief to their tenants.

A number of legal opinion pieces have highlighted the rights of both tenants and landlords, but have all urged work together to create a mutually beneficial solution that mitigates future litigation.

“Landlords must appreciate that some tenants won’t have the liquidity to meet all their obligations right now. A valuable tenant, however, who has consistently met their payment obligations for years is not worth losing, and the only thing worse than deferred rent is no rent at all,” writes Bradley Jackson, Partner at BDO Cape Town who adds that Tenants should honour any agreed deferral arrangements

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It is against this background that port leaseholders are disappointed in TNPA’s lack of a wider rental relief policy.

SLOVAKIA

“On behalf of our members who hold leases in the Port, SABBEX (South African Boat Builders Export Council) would like to have seen a level of leniency from TNPA with respect to rental payments under Level 5 and Level 4 lockdown,” says Thina Qutywa of SABBEX.

COLOMBIA

“With 100 percent lockdown in April and with a 50 percent exemption for ship and boat building to return to work in May, in principle a month of rental holiday and a 50 percent rental reprieve over those two months should be a logical consideration.

“With a “change in law” there are provisions for negotiating lease terms, but whether these are effected remains to be seen as stipulated time frames have already elapsed,” she adds.

AQUACULTURE

Major investment aims to boost aquaculture MOZAMBIQUE: The Mozambican government is planning to invest about $800 million (56 billion meticais) to develop aquaculture across seven provinces in the country over the next ten years.

The director-general of the National Institute for the Development of Fisheries and Aquaculture, Verónica Namashulua, announced this vision in Maputo recently saying that the investments are aimed at covering the food deficit in Mozambican communities.

The country currently produces about 3,000 tons of fish in captivity per year, but the DG believes that there is a potential to produce more than four million tons.

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SECURITY

Kenya moves to develop a maritime security strategy KENYA: An ambitious roadmap to develop a National Maritime Security Strategy for Kenya that aims to promote opportunities for social-economic growth, by safeguarding and promoting the blue economy and by providing a safe and secure operating environment for international maritime transportation was agreed on last week during a virtual meeting organised by the International Maritime Organisation.

The meeting was attended by 16 participants, representing maritime stakeholders from all relevant ministries and agencies of Kenya. They discussed the best way forward in developing the strategy and establishing a National Maritime Security Committee, with the technical assistance of IMO.

MARINE ENGINEERING

PEOPLE

Workboat delivered to SANDF special forces

Addressing community challenges in Saldanha Bay

Participants agreed on the need for a holistic approach, noting that the response to national maritime security threats must be multi-faceted.

The establishment of a national strategy is in line with Kenya’s obligations under article three of the Jeddah Amendment to the Djibouti Code of Conduct. It is also in line with Chapter XI-2 of the International Convention for the Safety of Life at Sea, the International Ship and Port Security Code (ISPS) and other IMO instruments.

SOUTH AFRICA: Transnet Group Chief Executive Portia Derby met with the leadership of various community organisations in Saldanha Bay during July, to address challenges in the port town which have led to protests in the area.

The meeting was opened by Nancy Karigithu, Principal Secretary of the State Department for Shipping and Maritime Affairs, who highlighted the key opportunities that a National Maritime Security Strategy could provide for Kenya.

The meetings were part of the GCE’s engagement with stakeholders in the west coast, including the Saldanha Bay IDZ and the local municipality in an effort to strengthen collaboration between Transnet and the broader Saldanha Bay community.

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SOUTH AFRICA: The South African National Defence Force (SANDF) Special Forces received a boost when they took delivery of a 20 m workboat for the transportation of personnel and equipment.

The vessel, which will also be used for training purposes, was built by local yard Veecraft Marine, a subsidiary of Paramount Maritime.

The workboat, aptly named Inkanyamba, after a Zulu legendary sea serpent, can efficiently navigate through the inclement weather conditions often experienced in the country’s coastal waters.

Powered by twin 588kw MAN D2862 LE431 marine engines, rated at 588 kw (at 1800 rpm), and driven by two Teignbridge fixed pitch propellers, the vessel can reach a cruise speed of 14 knots while transporting passengers, crew and even a container.

Up to four crewmembers and 16 passengers can be accommodated. Its wheelhouse is designed to allow for 360-degree visibility for crewmembers, including offering an unobstructed view of the cargo deck. The workboat’s deckhouse is further fitted with galley and mess areas, along with ten berths, two bathrooms and a deck locker accessible from the cargo deck.

Other notable features include the workboat’s durable fendering system, heavy towing bollards on either end of the vessel, a foldable dive platform equipped behind the transom, a five ton marine crane and stairs additionally integrated into the main deck, so as to provide safe logistical access for personnel and passengers.

Inkanyamba has been designed in accordance with Bureau Veritas (BV) requirements and in accordance with flag state rules, as defined by the South African Maritime Authority (SAMSA) for Category C vessels.

Stuart McVitty, Chief Executive Officer (CEO) of Veecraft Marine, stated that: “Maritime security is a critical component in safeguarding our country’s territorial integrity, which includes protecting our exclusive economic zone and blue economy. It’s a privilege to maintain our commitment to supporting South Africa’s defence forces through innovative technologies and transportation and training platforms, such as Inkanyamba.

The issues raised by the community forums include challenges with Transnet procurement processes, employment practices by Transnet suppliers and service providers, as well as development and upskilling of communities in Saldanha Bay. The GCE has committed that Transnet will provide an update in three months to the stakeholders; on steps Transnet has taken to address all the issues raised.

“This workboat’s delivery is yet another benchmark of what remains our continued service in supplying vessels designed to navigate through austere environments, with both maximum cargo load capacity yet exceptional maneuverability in mind.”

The organisations that met with the GCE include the All Truck Drivers Foundation (ATDF), Cosatu, Satawu and SANCO.

6 JULY 2020

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Marine Tilapia project included on strategic infrastructure list SOUTH AFRICA: A Marine Tilapia Industry project has been included on the list of the first 50 strategic infrastructure projects that the government gazetted this month and intends to focus on as part of a focus by the Department of Public Works and Infrastructure to identify key projects that will respond to the social imperative to create jobs and transformation.

According to Minister Patricia de Lille, the Marine Tilapia Industry project offers a prime opportunity to rescale developmental objectives using new inclusive growth conduits to address the twin challenges of poverty inequality on the one hand, as well as nutritional security and food sovereignty on the other, by triggering interconnected and inclusive economic activity across the Mbhashe region.

The focus on infrastructure dates back to May last year when the portfolio was added to the Department of Public works. This new department was mandated in terms of the Infrastructure Development Act to collate all infrastructure projects and was gazetted by President Cyril Ramaphosa in August 2019.

“The severe economic recession, together with the COVID-19 pandemic, has now placed an added urgency on us to navigate a New Normal. In this new normal, there is an even greater need to partner in the investment and implementation of infrastructure that will facilitate social and economic growth in a workable and purposeful way,” said De Lille.

Describing the process of collating the first strategic list of infrastructure projects, the Minister confirmed that department had engaged across the country to identify 276 projects nationally. “We put the projects through an assessment to

PORTS

Addressing port congestion in Durban SOUTH AFRICA: A multi-disciplinary task team is working to alleviate congestion in the Port of Durban by introducing a holistic truck booking system that aims to provide an integrated view of expected truck volumes for improved planning.

Moshe Motlohi, General Manager at the Port of Durban, who chairs the team of private and public sector entities, said, “We don’t only want Transnet Port Terminals and Transnet Freight Rail to be the ones sequencing the arrival of trucks at the port. We want to have a booking system that will give the port intelligence around how many trucks are expected in each hour so that we can proactively decide how to deploy our resources and give port users full visibility so that they can plan when and when not to send vehicles to the port. We feel this will add value, lower costs and have a positive environmental impact.”

A mandatory automated truck booking system has already been introduced at Durban Container Terminal Pier 1 and Pier 2, while the Grindrod, FPT and Bulk Terminal depots have also piloted their own booking systems. Transporters visiting these terminals are required to notify the terminal operators ahead of time if they intend to call at the port.

Motlohi said the task team has already engaged the depots and terminal operators and presented options to them. “Stakeholders around the Bayhead and Island View precinct have welcomed the view of having an integrated system to control the number of trucks entering and exiting the port,” he said.

The task team has also held engagements with users of the existing Transnet truck booking system around the initial challenges experienced. The stream as well as the container terminals have been exploring improvements based on feedback from the transport industry.

Says Motlohi, “We acknowledge that there is still see if they are bankable, ready for implementation and to determine which projects had feasibility studies done,” she explained.

work to be done on this front, but have no doubt that all parties will be accommodated. Internally, Transnet Port Terminals has engaged its Pier 2 Container Terminal landside employees on the system and the use thereof. As partners in this process, employees have also provided their feedback and input on how to improve the system to better serve the customer.”

He said the task team was also making strides in engaging depot operators about the possibilities of operating for 24 hours a day, 7 days a week.

“This intervention is to sync the depot operations with the terminal operations, to ensure alignment and that trucks are dispatched accordingly for cargo to be collected even during less popular hours, such as weekends and after hours. That would reduce congestion in traditional peak periods.”

The Port of Durban Decongestion Task Team involves a broad range of private and public sector organisations involved in the port.

Through nine targeted workstreams the task team has adopted an integrated approach to tackle the root causes of Bayhead traffic related congestion and to ensure improved coordination, planning, operations, cargo flows and capacity.

odology which relates to a project’s identification, consideration, evaluation, approval, and implementation of workable infrastructure, in order to ensure bankability.

After an initial meeting in February this year, a Sustainable Infrastructure Development Symposium followed towards the end of June.

The outcomes include the establishment of a new methodology known as the Sustainable Infrastructure Development System (SIDS) Meth-

“The Methodology compliments and reinforces the requirements for infrastructure development in South Africa, as envisaged by the Infrastructure Development Act, which in itself is a lever we have at our disposal to achieve our

A lifeline extended for crew changes SOUTH AFRICA: South Africa took official steps at the end of July to help alleviate the crew change crisis by opening the country’s borders to sea crew for the purposes of foreign crew changes.

The announcement was published in the Government Gazette No 43577 on 31 July and amends regulation 41 of the Disaster Management Regulations that had previously closed the country’s borders almost entirely. Now Section 5 c notes that the borders will remain closed except for ports of entry designated by the Cabinet member responsible for home affairs for “foreign sea crew for the purposes of exchange of sea crew in the Republic”.

According to an email containing the Gazette sent by Tsepiso Taona-Mashiloane, Director Maritime Industry Development and Economic Regulation, the lifting of the restriction will come into effect on 1 August.

“It is a part win for maritime as we await full opening of our international airports. In the meantime, chartered flights and scheduled repatriation flights as made available through diplomatic channels are recommended for ease of travel,” she noted.

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infrastructure development goals and focus on prioritised implementation,” says De Lille who adds that it emphasises the need for skills development, training and education for historically disadvantaged persons and communities, women, youth, and persons with disabilities.

The process of gazetting the first Infrastructure Projects, as contained in SA’s Infrastructure Investment Plan will prioritise implementation and facilitate the unblocking of the mechanisms, whether technical, financial, legal or administrative that have hindered infrastructure delivery for so long as it utilises the mechanisms available in the Infrastructure Development Act. A steering committee has been established that will ensure that all approvals, authorisations, licenses, permissions and exemptions are expedited within shortened, concurrent timeframes, while an inaugural Presidential Infrastructure Coordinating Commission (PICC) Council will meet before the end of the month.

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OIL AND GAS

Cairn exits Senegal offshore oil field SENEGAL: Cairn has entered into an agreement to sell its entire 40 percent interest in the Rufisque Offshore Sangomar Offshore and Sangomar Deep Offshore (RSSD) Contract Area to Lukoil for a sum of up to US$400 million plus reimbursement of development capital incurred since the beginning of 2020.

According to a statement issued by Cairn, following the deal, the company intends to return at least US$ 250 million to shareholders. The transaction also aims to enhance the Group’s financial flexibility to sustain and grow a balanced and robust portfolio during the current challenging and uncertain oil market conditions.

“We are are proud of what Cairn has achieved in Senegal. Our discoveries were the country’s first deep-water wells and opened up a new basin play on the Atlantic Margin. What’s more, they successfully laid the foundations for Senegal’s first oil and gas development, which will deliver enduring benefits to its people,” says Simon Thomson, Chief Executive of Cairn.

“Entering the project with already explored reserves at early stage of their development is fully in line with our strategy and allows us reinforcing our presence in West Africa.

Joining the project with qualified international partners will allow us to gain additional experience in development of offshore fields in the region”, said Vagit Alekperov, President of PJSC LUKOIL. The blocks of the project covering

SECURITY

2,212 sq. km are located on the deepwater shelf of the Republic of Senegal 80 km from the shore with the sea depth of 800-2,175 meters.

The blocks include two discovered fields: Sangomar and FAN. The field is planned to be launched in 2023 with designed production level of 5 million tons of crude oil per year.

Pirates attack oil production vessel off Nigeria NIGERIA: According to a report on the Nigerian Navy website, pirates attacked an oil production vessel off Nigeria in the early hours of Thursday morning and kidnapped nine Nigerian nationals who were on board.

Transaction highlights: Cairn to sell its entire 40 per cent interest in the RSSD assets to LUKOIL with effective date of 1st January 2020, subject to required JV partner and government of Senegal consents; Completion currently expected in Q4 2020; Cash consideration payable on Completion of US$300m plus working capital adjustments including reimbursement of development capital expenditure incurred since 1st January 2020 (Cairn’s net capex guidance for Sangomar in 2020 is US$330m); Further contingent consideration of up to US$100m, dependent on the timing of first oil and the average Brent oil price during the first six months of production; Realises value and reduces concentration of development risk, financing risk and the need for significant capital expenditure over four years; Further strengthens Cairn’s balance sheet and provides flexibility to invest in and grow the business; and Intention to provide a substantial and certain return of capital to shareholders of at least US$250m by special dividend following Completion, consistent with Cairn’s approach to capital allocation.

A focus on fishing Maritime Review Africa will team up with the South African Maritime Safety Authority (SAMSA) for two weeks in August to focus attention on and address issues in the fishing sector.

The SAMSA Fishing Fortnight will kick off on August 10 and include a number of webinars as well as a daily newsletter highlighting key topics currently affecting the sub-sectors that make up the fishing industry.

The two-week focus will also include the SAMSA Fishing Safety Indaba on August 18. The programme will be held virtually with free registration available to stakeholders who wish to attend.

Held last in 2018, the Fishing Safety Indaba is an important event on the SAMSA calendar that provides stakeholders with an opportunity to engage as well as strengthen the safety culture of the sector.

“SAMSA is appreciative and where possible, renders support to efforts to continually improve the value chain in the fishing industry. This can be witnessed by our consistent engagement with our fishing

The vessel, a floating production, storage and offloading vessel (FPSO) was working at the Okwori oilfield operated by Addax Petroleum, a part of China’s Sinopec Group.

Okwori oil field is operated under Oil Mining Licence (OML) 126. The Sendje Berge ship was undergoing maintenance when the attack happened, BW Offshore’s Chief Financial Officer Staale Andreassen told Reuters.

The Oslo-listed company said none of the people remaining on the vessel were injured. “We are working now with the Nigerian authorities to get those nine people safely back,” Andreassen added.

A maritime security firm Dryad Global, citing unidentified reports, said the attack on the 349 meters-long FPSO on Thursday involved three boats and explosives, making it unusual. Andreassen said he could not confirm that a number of boats had been involved, but denied that explosives were used during the attack.

The BW Offshore in a statement said: “On 2 July 2020, at approximately 4:20 am local time, BW Offshore’s FPSO Sendje Berge was subject to an attack by pirates offshore Nigeria in which nine Nigerian nationals were kidnapped.”

stakeholders over the years. With this event, coming, incidentally, at a time when we also have to deal with the ravages of the currently rampant Covid-19 pandemic both in South Africa and globally, we are hoping that this coming two weeks’ event, culminating in a Fishing Safety indaba on 18 July, will go a long way in contributing to the strengthening of unity and common vision in the industry, while contributing to resolution of challenges towards development of a highly productive and sustainable industry,” notes Sobantu Tilayi, Acting CEO of SAMSA. Topics due to be covered include the fishing vessel recapitalisation project, the Fishing Rights Application Process (FRAP), fishing industry news, products and procurement, vessel profiles and research and fisheries management, training, safety and more.

“We are excited to be working with SAMSA on this project. Our interaction with the fishing sector suggests that they are eager to have many of their issues addressed and are looking forward to these engagements,” says Colleen Jacka, editor of Maritime Review Africa.

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“The incident onboard the FPSO has ended and none of those remaining onboard have suffered physical injuries. BW Offshore is cooperating with local authorities, represented on site by the Nigerian Navy…BW Offshore expects to provide further updates as more information becomes available.”

OIL AND GAS

International training to promote local skills in oil and gas MOZAMBIQUE: The Mozambican Minister of Mineral Resources and Energy, Max Tonela, has announced that more than 1,000 young people will benefit from a training programme to develop technical skills required in the natural gas exploration of Area 1 in the Rovuma Basin in Cabo Delgado.

“There is already a memorandum of understanding formulated between the government and the consortium hired by the partners in the area for construction, which provides for the training and qualification of a thousand people and we are discussing with Total and we agree on the addition of this number, to expand this need,” he said when visiting the president of the French oil company, Total, Arnaud Breuilliac recently.

The President of Total highlighted at the meeting the commitment of the Rovuma Basin Area 1 project to the development of the population of the province of Cabo Delgado and the country in general.

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TENDERS ISSUED IN JULY Aquarium Control System (Engineering) Barge and Tugboat hire (Ports) Bearings (Ports) Business Intelligence Solution (Consultancy) Cargo Scanner (Ports) Class Inspection (Marine Engineering) Communication and Strategic Consultation (Consultancy) Container Tracking System (Ports) Crew Certificates (Ports) Customs Brokerage (Oil and Gas) Diver Equipment Servicing (Ports) Dredging Management System (Ports) Drydocking (Marine Engineering) Emergency Engine Services (Ports) Fire Fighting Pumps (Ports) Fish Processing Structure (Fishing) Fishing Community Engagement (Consultancy) Forklifts (Ports) Funding Strategy (Consultancy) GNSS System (Ports) Hydraulic Repairs (Marine Engineering – Ports)

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Pipes and Pipe Bends (Oil and Gas – Marine Engineering) Portable Fire Equipment (Ports) Reefer Monitoring System (Ports) Rescue Boats (Marine Engineering) RTG Gantries (Ports) SAWL Line Pipe (Oil and Gas) Seismic Acquisition (Oil and Gas) Siemens Spares (Marine Engineering) Slipway Repair (Ports and Harbours – Civils) Small Harbour Analysis (Consultancy) Specialised Electrical Services (Ports) Sponge Blasting Equipment

(Marine Engineering) Stevedoring Services (Oil and Gas) Stevedoring Services (Ports) Straddle Carrier Tyres (Ports) Strategic Planning (Consultancy) Submersible Pumps (Ports) Subsea Mechanical Clamp (Oil and Gas) Subsea Systems (Oil and Gas) Sulzer Pumps (Ports) Tug Boat (Marine Engineering – Ports) Tug Drydocking (Marine Engineering – Ports) Vessel Insurance (Professional Services) Weather Buoys (Ports)

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BLUE ECONOMY

Streamlining maritime governance NIGERIA: Parastatals under the Federal Ministry of Transportation have agreed on modalities for handling areas of overlap in their responsibilities in an effort to improve synergy and support the maritime sectors.

Speaking after a meeting between heads of the parastatals at the headquarters of the Nigerian Shippers Council last week, Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA) Dr Bashir Jamoh said “We have held the inaugural meeting for improved synergy and we hope to hold it on a monthly basis for the next four months. Due to the proximity of our corporate headquarters to each, a lot of gains will be achieved in a short while without the usual official bureaucracy.”

The Director-General added, “From our discussion and deliberations, we have decided on so many issues

PORTS

New straddle carriers assembled and ready for operations SOUTH AFRICA: With COVID-19 travel restrictions impacting on the availability of Polish engineers to oversee the assembly of four new-generation straddle carriers destined for the Cape Town Container Terminal, local resources were successfully accessed to assemble and test the equipment which has now been handed over to Operations.

CTCT is predominantly rubber-tyre gantry (RTG) crane and the acquisition of the straddle carriers was largely part of a wind recovery strategy to mitigate against strong winds. The straddle carriers can work through wind speeds of up to

90km/h compared to 72km/h on RTGs. According to Acting Terminal Manager Oscar Borchards, “The terminal was at one point operating at 60 percent capacity due to COVID-19 infections. Having world-class equipment and dedicated, skilled operators during challenging conditions is a winning combination and our performance is getting better day by day”.

The straddles complement an existing terminal fleet of equipment largely servicing the agricultural industry, with containerised cargo moving across trade markets like Asia, Europe, America, Australia and East and West Africa. “The hand over to operations comes at a time when the terminal prepares for a full peak season starting in November, and we are confident of improved performance,” said Borchards.

The R71 million-investment forms part of Transnet Port Terminals’ R2 billion-equipment replacement drive in the current calendar year.

10 JULY 2020

that concern national development, overlapping functions, and others.

“We have a committee inaugurated by the ministry of transportation and we have been working for close to a year now. We have now decided on who should take what responsibility and we are going ahead with that.”

He said there was no better time to improve synergy among agencies under the Federal Ministry of Transportation than now, “When the COVID-19 pandemic and the accompanying disruptions to business and economy have placed a great deal of responsibility on the maritime sector as a vital support to the economy and key medium for the movement of essential supplies.”

Those who attended the meeting were Executive Secretary of NSC, Mr. Hassan Bello; Jamoh; and Managing Director, Nigerian Ports Authority (NPA), Hadiza Bala Usman.

Managing Director, National Inland Waterways Authority, Dr. George Moghalu, and Rector, Maritime Academy of Nigeria (MAN), Oron, Commodore Duja Effedua (Rtd), joined via Zoom.

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PORTS

New reach stackers for Durban SOUTH AFRICA: The Point Multi-Purpose Terminal in Durban has taken receipt of four new reach stackers at a cost of R47 million to boost its container handling service that also serves as a diversion contingency for the Durban Container Terminals Pier 1 and 2.

“There is ample demand for container handling services at the terminal. It benefits both the terminal’s diversification and growth strategy but importantly our capacity fulfils Transnet Port Terminals’ (TPT) service to its customers entirely through a complementary network of terminals,” said Amanda Siyengo, General Manager for Durban Bulk, Break Bulk and Cars at TPT.

PORTS

Virtual port consultations wrap up with stakeholder input SOUTH AFRICA: Port users across all of South Africa’s eight commercial ports were able to tune into virtual port consultations at the end of July, ahead of submitting their concerns and questions to the Port Consultative Committee (PCC) for onward submission to the Ports Regulator and Ports Authority.

The terminal will in total receive seven 45-ton reach stackers within the current calendar year, a necessary investment in improving availability of equipment for increased volume throughput. “The terminal’s design allows for the free movement of equipment like reach stackers as they can transport a container over a short distance quickly and pile them in various rows – ready for collection or loading,” said Siyengo.

This purchase forms part of TPT’s equipment investment of R2 billion across its 16 terminals at the country’s seven commercial ports and three inland terminals. Current investments are a response to industry calls for equipment that will improve performance. Emphasising the company’s focus on customer service, Siyengo said, “Point MPT is working hard to ensure improved service delivery.” She added that the terminal had a balanced combination of people skills, technology and service for anticipated container growth.

The PCC was established in terms of Section 81 of the National Ports Act and includes representation from each port with the aim of providing a forum to facilitate exchange between port users and Transnet National Ports Authority (TNPA).

PORTS

Large vessel caller for Cotonou On 18 July 2020, Benin Terminal welcomed the CCNI Arauco, the largest ship to have ever berthed at Cotonou.

This 300-metre long, MAERSK ship weighing over 100,062 tonnes, sailing under the Hong Kong flag, berthed at Benin Terminal’s berth No. 10.

This ship coming from Shanghai has a loading capacity of 8,700 twenty-foot equivalent unit (TEU) containers. It allowed Benin Terminal’s teams to unload containers intended for Benin and for bordering countries and to load containers of products for export.

Thanks to the actions implemented by Benin Terminal in synergy with the Autonomous Port of Cotonou, four other ships of this size have already been announced over the next few days on Benin Terminal’s berths.

“This operation, resulting from the partnership between the Autonomous Port of Cotonou, Maersk and Benin

With COVID-19 restrictions in place that limit public gatherings, the PCC was challenged to undertake their annual roadshow within the digital space. The solution was to host the sessions on Microsoft Teams with simultaneous live-streaming to Facebook for wider audience participation.

While participation numbers did not compare to previously hosted live sessions, Selma Schwartz-Clausen noted that virtual meetings could remain an option for the future. “We may have to find a balance in virtual and in-person meetings. It is a learning curve and one where we will have to find what works best for South African port users,” she told Maritime Review at the close of the sessions.

Cotonou a driving force for the social and economic development of Benin.” stated Arnaud Jobard, Director of Operations for Benin Terminal.

“The main aim is always to consult as widely as possible and have port users have their say. That is what democratising the port space is all about,” she added, thanking those who took the time to log in and participate.

Large-capacity ships calling at the Port of Cotonou reinforces Benin Terminal’s aim of becoming a growing regional logistics hub for Niger, Mali, Burkina Faso and Nigeria. This is helping to strengthen Benin Terminal’s contribution to the economic development of Benin.

The PCC will share the consolidated list of submissions received within the public domain once they are received back from TNPA.

Terminal, is the culmination of the plan to modernise the Port of Cotonou’s container terminal. With significant investments in equipment, information systems, and staff training, Benin Terminal is helping to make the Port of

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