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Opportunities in South Africa’s Oceans Economy

Block H Wedgewood Office Park, 3 Muswell Road, Bryanston, Sandton,

Johannesburg, South Africa, 2000

Content

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1. About Us: Elekhom Global

2. Advantage South Africa

3. Market Overview

4. Drivers of Market Change

5. The SA Oceans Opportunities

6. The End

ABOUT US AN OVERVIEW OF ELEKHOM GLOBAL

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Elekhom COMPANY OVERVIEW

Elekhom Global is an boutique advisory services firm in the oceans sector.

We offer innovative solutions to blue entrepreneurs, investors, governments and the non-governmental sector to help our clients navigate the dynamic challenges and opportunities across the oceans economy.

We provide investment and enterprise development advisory and consulting services through our deep

South African and Sub Saharan Africa industry knowledge, insights, expertise and robust value adding solutions that cut across the oceans economy.

OUR SERVICES

Our bespoke solutions hope to address the most critical challenges and exploit the most value creating

opportunities across the oceans sector, industry, business and investment spectrum.

Our experienced practitioners and associate partners have extensive knowledge and experience in the ocean industries to provide a comprehensive marine and maritime industry expertise across all aspects of the oceans sector.

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Elekhom OUR PURPOSE

Elekhom - on transforming the oceans, seas and waterways sustainably into the new liquid diamond resource:

As we usher the new epoch of the Oceans Century and open up the industrial vistas of our planet's last under-explored and under-exploited economic territories - our Ocean Spaces,

in the best interest of all humanity and future generations, we must ensure that our

Oceans are developed with strong foundations of ecological protection and sustainability

and exploited using innovative green technologies and funded largely through green financing and funding instruments.

Every industry, every stakeholder and each community and participant in the

Oceans Economy must become steward of the Ocean if we are to avoid the human induced disasters of the sometimes unsustainable industrial exploitation of the land

resources and related territories.

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ADVANTAGE SOUTH AFRICA AN INTRODUCTORY OVERVIEW

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Richards Bay

Durban

East London

Port Elizabeth

NgquraMossel Bay

Cape Town

Saldanha Bay

Port Nolloth

Maritime Facts

• Strategically located on the Indian Ocean, the Atlantic

Oceans and and Southern Seas

• Jurisdiction over one of the world’s largest EEZs

• Location serves the South South Trade

• 8 commercial ports, which handle over 300 million

tonnes of seaborne trade

• Oceans economy estimated to contribute approx 4,4%

to GDP

• South Africa’s oceans economy is uniquely advantaged

in the Sub Saharan industrial and trade regional system

• Home to over 75% of the leading African companies and

a global leader in banking and financial market/services

systems.

• Important oil and gas reserves are thought to be situated

offshore on the Indian Ocean.

• Its waters offer a unique oceans and marine ecosystem

SA Oceans Facts and Figures

OCEANS ECONOMY OVERVIEWELEKOM GLOBAL

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The Oceans Economic Frontier

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Oceans Transport Marine Infrastructure

Offshore Energy & Minerals Marine Commercial Services

Marine Tourism and Leisure

Marine Manufacturing

Oceans Skills & Competence Oceans Innovation Oceans investment Oceans Knowledge Oceans Technology

Ocean Food

DRIVERS OF MARKET CHANGEELEKOM GLOBAL

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Strategic Drivers of Change

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• National Development Plan

• Comprehensive Maritime Transport

Policy

• The Draft Green Transport Strategy

• Industrial Policy Action Plan

• Transnet’s Market Demand Strategy

• Operation Phakisa: The National Oceans

Economic Development Programme

Policy & Strategy Factors

• Alternative sources of energy and resources

• Oil prices

• China’s economic growth patterns

• Global economic recovery

• Food security and forecasted shortages

• Climate change and environmental concerns

• Subdued GDP

• Technology and Innovation

Market Factors

• International Conventions and multilateral

agreements

• AU Ocean policies, strategy and multilateral

agreements

• Regional oceans and trade related

agreements and strategies (IORA)

• Regional growth and development

• Growing regional demand for SA

manufactured goods

Regional & International Factors

SUMMARY OF OPPORTUNITIESELEKOM GLOBAL

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Marine Infrastructure

Port and Harbour Infrastructure

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Oil rig, ship repair, modification and maintenance facilities

Automation and digitisation of the port environment

Modernisation of Ports in line with advent of bigger vessels

Environmental management and waste treatment technologies

Intelligent Port Operations (Smart Port Programme) eLTE

The potential for using renewable and alternative energy to power the Ports

Port Industrial Zones (Industrial Development Zones RBIDZ, SBIDZ, ELIDZ, Dube

Expansionary plans of Transnet into the Sub Saharan

Africa Region

Supply of smart and modern cargo handling equipment

Vessel monitoring and tracking capabilities

Development of Small Fishing harbours Cruise and Marine Tourism

Terminals

Marine Transport

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Long term demand and supply of Liquid Bulk Cargo shipping - Bare boat charter opportunities

Long term demand and supply of Dry Bulk Cargo - Bare boat

charter opportunities

Marine Transport

Intra Regional Coastal seaborne trade across Sub Saharan Africa

Opportunity to Jointly exploit international, domestic and regional cargo carrying opportunities

Passenger and Equipment Transport for cruise, research, offshore, operations and support in South Africa and across Sub Saharan

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Port and Harbour infrastructure and facilities for

waste management, treatment and reduce

carbon emissions

Green Shipping

Alternative Marine Energy (LNG, Battery and Hydro

powered vessels)

Opportunity to Jointly exploit international, domestic and regional cargo carrying opportunities

Technology enabled maritime pollution monitoring systems

The introduction of coastal shipping into the inter modal mix for

coast wise cargo

Marine Manufacturing

Richards Bay

Durban

East London

Port Elizabeth

NgquraMossel BayCape Town

Saldanha Bay

Port Nolloth

Market Size

• Approximately 13,000 ships call on South African

Ports

• Over 300 million tonnes of seaborne trade

• Over 4,9 million barrels of oil moves past South

Africa a day

• South Africa has an estimated 10,000 ships

around its coast at any given point in time

• South Africa is on a global maritime chokepoint

route

• Market potential of 2500 to 5000 ships per annum

for ship repair, modifications or maintenance

• Global demand for dry-docks is on the increase

• Approximately 33% of tankers, dry bulk carriers

and container vessels are dry dock per annum

• South Africa is nested in the Sub Saharan

industrial regional system

Marine Repairs, Modifications, Maintenance and Services

Increase % of vessels calling from 13% to 38% (1 650-3 300 vessels) (Operation Phakisa)

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OEM Supply of engines, equipment, sensors, ROV and related offshore technologies

SA government fleet orders for new builds (Incl. Patrol, Naval, Merchant and leisure vessel)

Sub Saharan Regional Demand for patrol, specialized and offshore support vessels.

Opportunities related to the recapitalisation of South Africa’s fishing fleet

Marine Manufacturing: Ship Building, Repairs, servicing and Modifications

Partnerships with local ship yards for local and regional marine manufacturing

New boat building industrial park recently established in the Port of Durban.

Repairs, maintenance and modification of ships, oil rigs and other offshore platforms

Ship Building

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Current New Building Projects

• Project Hotel = The investment needed for a new hydrographic

vessel for the SA Navy was in the order of R1.8 billion.

• Project Biro - Damen won the Biro project bid with its FCS 5009

design for the inshore patrol vessels. 1800 Sea Axe measures 85

meters in length and reaches a maximum speed of 26 knots.

• Transnet tug construction; the largest contract ever awarded to a

South African company for building harbour craft for R1.4-billion

($100 million in 2017 prices)

Future Building Projects

• Building of smart patrol ships with Port integrated management

technology

• Supply of original equipment and integrative technologies

• Fuel and operationally efficient vessels

• Joint regional opportunities

Oceans Economy Enabling Frontier

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Oceans Skills & Competence Oceans Innovation Oceans investment Oceans Knowledge Oceans Technology

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THE END

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