Transnet has been assigned to the Department of Transport, following the removal of the Department of Public Enterprises from government structures in the new administration.

President Cyril Ramaphosa has assigned shareholder responsibility for each of the state-owned enterprises that previously fell under the Department of Public Enterprises to the respective line-function Ministries.

The President has signed a proclamation appointing the Minister in the Presidency responsible for Planning, Monitoring and Evaluation as the executive authority of the Department of Public Enterprises (DPE), which will continue to exist and operate until the human and financial resources are transferred appropriately.

The Minister in the Presidency responsible for Planning, Monitoring and Evaluation has also been assigned the responsibility to finalise the National State Enterprise Bill, which will set out the exercise of shareholder responsibility for respective SOEs which will be transferred in a phased manner into the envisaged national enterprise holding company.

Other maritime-related entities which have been impacted by the closing of the Department of Public Enterprises include:

Alexkor – will be transferred to the Minister of Mineral and Petroleum Resources
Denel will be transferred to the Minister of Defence and Military Veterans

Benefiting from improved pricing and strong demand in wild-caught fish, the Sea Harvest Group has recorded a three percent revenue increase to R3.3 billion over the last six months.

Acknowledging the tragic incident that saw the loss of 11 crewmen during the same period, CEO Felix Ratheb described the first six months of the year as the “toughest months in the history of the Group”.

“The Board, management and staff extend our deepest condolences to the families and loved ones to the 11 crewmen lost at sea. As, a Group, we continue providing support to the affected families, whilst continuing to cooperate with the investigation into the incident by the South African Maritime Safety Authority (SAMSA),” he said.

The Group has completed the strategic acquisition of Aqunion and Saldanha/Westpoint Fishing which sees the company diversifying their exposure to include pelagic fishing. It has also effectively doubled their abalone business.

Commenting on the acquisition, Sea Harvest Group Chairman, Fred Robertson, noted that the transaction served to increase earnings and create a stronger business. “This transaction has increased black ownership in the fishing and abalone industries and broadened Sea Harvest’s shareholder base,” he added.

Lower catch volumes in the hake fishery were offset by significantly higher prices. “As we continue into the second half of 2024, we look forward to the fish volumes still available to be caught by the Group,” says Felix.

“With the addition of Sea Harvest Pelagics and Aqunion and the potential decrease in of interest rates, the Group looks forward to an ease in operating conditions for the rest of the year,” concluded Felix.

The launch of the vessels comes shortly after the christening of a further two workboats for the Port of Cape Town last week. In addition, a further two tugs will be unveiled next month at a launch ceremony scheduled to be held in East London where they will take up service.

This brings TNPA’s tugboat complement to a total of 38 across its eight commercial seaports, with the Port of Durban boasting the highest number of 14 tugs.

Delivering the keynote address at the christening ceremony at the Port of Durban, Transnet Board Chairperson, Andile Sangqu highlighted the significance of investing in marine assets: “The procurement of this fleet demonstrates Transnet’s commitment to fully realising the Recovery Plan. We are now approaching 12 months of the 18-month cycle and can see improvement in the agility of executing strategic projects, which will enhance the organisation’s competitiveness. Meeting the objectives of the Marine Fleet Renewal Programme coupled with a skilled workforce will catapult our responsiveness to meeting global shipping demands.”

As the busiest port in sub-Saharan Africa, the additional fleet will enable the Port of Durban’s readiness to respond with on-demand craft in the safe navigation of vessels within the port.

With a bollard-pull of 60 tonnes, the tugs delivered by Damen Shipyards Cape Town feature the latest hull design and propulsion system consisting of diesel engines fitted with Azimuth Stern

Drive. These comply with the International Maritime Organisation’s Tier III environmental standards. This makes the tugs fully capable of handling larger vessels that call at South Africa’s premier container port.

It is shocking that financial institutions that do business in Africa continue to practice financial apartheid by cutting off capital and financing to oil and gas companies operating in Africa because of climate concerns. These same institutions fund gas development in Europe, where natural gas is deemed green and a fossil fuel for Africans,” says NJ Ayuk, Executive Chairman of the African Energy Chamber (AEC).

The AEC is urging banks to reevaluate their approach and is calling on global financiers to support Africa’s energy projects.

As financial institutions continue to implement policies aimed at reducing support for fossil fuel projects, Africa has seen a sharp decline in investment in the continent’s oil and gas industry. The African Energy Chamber argues that these institutions are practicing “financial apartheid,” arguing that while similar projects receive support in Europe, Africa’s high-cost energy projects are being neglected.

Major international oil companies are reducing their presence in Africa. For instance, Equinor has withdrawn from offshore exploration in South Africa and ExxonMobil has exited a deep-water oil prospect in Ghana. This decline is contributing to a bleak outlook for Africa’s energy sector.

“As the international community moves to boycott investments in the African energy sector, African people and African development stand to suffer,” says Ayuk.

“The role of oil in Africa’s energy and economic future is apparent, and consequently, should be defended as Western elites move to disrupt African progress.”

Ayuk believes that the broader implications of financial divestment are profound. Many African governments rely on fossil fuels as a cost-effective means to alleviate energy poverty and boost state revenues.

He says that the International Energy Agency (IEA) has “lost its relevance and its authority” with its calls to cease funding for oil and gas projects. “Originally focused on managing oil supply disruptions, the IEA now prioritiaes policies aimed at achieving net-zero emissions by 2050. Its 2019 projection that no new investments in oil, gas, or coal are needed if the world continues on this path has been particularly controversial,” he says.

The AEC suggests that several key African projects are at risk due to the withdrawal of financial support. Significant initiatives like TotalEnergies’ Mozambique LNG project, ExxonMobil’s Rovuma LNG project, Nigeria’s Train 7 LNG expansion, Senegal’s Sangomar oil field, Uganda’s Tilenga project and the East African Crude Oil Pipeline (EACOP) require substantial financing to advance.

The Tanzania LNG project, involving Equinor and Shell, is stalled due to proposed government changes. UTM Offshore’s FLNG project in Nigeria, initially planned for 2023, has been postponed. Additionally, the EACOP faces significant criticism from financiers and environmental groups, complicating its development and financing.

Namibia, experiencing heightened interest from recent oil discoveries, is facing delays with the Kudu Conventional Gas Development. The Kudu Gas Project, an offshore initiative, has faced setbacks related to financing and project development challenges. As a result, the project is still pending FID and anticipated to commence production by 2026.

Despite these setbacks, however, some projects are progressing. TotalEnergies is advancing its $20 billion Mozambique LNG project, aiming to develop the Golfinho and Atum fields with a production capacity of 12.88 million tonnes per year. Eni’s Coral South FLNG project in Mozambique has achieved a production capacity of 3.4 million tonnes per year. Additionally, the Greater Tortue Ahmeyim (GTA) LNG project, which started gas production in November 2022, is being developed by bp, Kosmos Energy and the national oil companies of Senegal and Mauritania. This project includes an FLNG facility with an initial capacity of 2.5 million tonnes per year.

Meanwhile Nigeria’s Train 7 project, an expansion of the existing NLNG facility on Bonny Island, aims to boost production by 8 million tonnes per year, bringing the total to about 30 million tonnes per year. This development is crucial for Nigeria’s growing population and its ability to meet its energy needs.

The AEC is calling out the financing disparity and says that it undermines Africa’s ability to harness its natural resources for its development and also perpetuates a cycle of energy deprivation.

The acquisition of the new vessels forms part of TNPA’s ongoing efforts to improve port efficiencies and is part of the marine fleet renewal programme. The two newly christened vessels will take up position in the Port of Cape Town.

After issuing the tender for the vessels in 2021, the contract to build the vessels got underway in November 2022 when the R58 million contract to construct and deliver the launch vessels was awarded to the Durban-based yard.

The tender documents called for a modern single-screw steel harbour launch with an overall length of 13m, a beam of 5 m and a draught of 1.6m.

In her delivery of a keynote address at the Christening Ceremony, TNPA Acting Port Manager for Cape Town, Ophelia Shabane said, “The arrival of these new crafts comes at an opportune time when TNPA is executing the Transnet Recovery Plan, through the acquisition of fit-for-purpose marine fleet to improve operational efficiencies. This also aligns with our commitment to meeting industry demands in the western region.”

The delivery of the new launch boats replaces the existing two launches that are over 40-years old and have reached operational and design lifespan.

“We welcome an opportunity to assist TNPA with the replenishment of its marine fleet under the TNPA Marine Fleet Renewal programme and Transnet Recovery Plan. SAS continues to play a pivotal role in the engineering and manufacturing of multiple purpose vessels for TNPA, many of which still provide a critical service to ports around the country” said Prasheen Maharaj Chief Executive Officer of Sandock Austral Shipyards.

The design of the launch boats is in accordance with the rules of Bureau Veritas Class notation and SAMSA requirements for this type of vessel.

SAS, a fully accredited ship building and ship repair facility holding various ISO accreditations undertook a large part of the manufacturing work with support from our specialist service providers.

The project has generated the creation of approximately 70 direct jobs and 40 indirect jobs through the SAS contractors. It has also supported the practical on-the-job training of 20 apprentices who gained an invaluable opportunity to apply newly acquired theoretical skills from the classroom training acquired within the SAS accredited in-house Apprentice Learning and Development Centre.

The New Development Bank (NDB) is pleased to announce a R5 billion loan agreement with Transnet, South Africa’s leading freight transport and logistics company. This investment, aligned with the theme of NDB’s 9th Annual Meeting, “Investing in a Sustainable Future,” will support the modernisation and improvement of South Africa’s freight rail sector.

The loan agreement, signed during NDB’s 9th Annual Meeting, aims to enhance the efficiency and capacity of South Africa’s freight rail systems. The improvement and modernization of freight rail sector program includes rail network infrastructure renewal, locomotive overhauls, and wagon fleet renewal. This program is expected to restore freight rail volumes in South Africa, improving operational performance and reliability, and contributing to a sustainable future.

NDB President, H.E. Dilma Rousseff, said, “We are delighted to partner with Transnet in this transformative initiative. This loan underscores NDB’s commitment to supporting sustainable development and economic growth in South Africa. By modernizing the freight rail sector, we aim to facilitate more efficient logistics operations that will benefit the entire region and align with our goal of investing in a sustainable future.”

Transnet Group Chief Executive, Michelle Phillips added, “This investment is important for Transnet, as we accelerate implementation of the Recovery Plan and economic reforms. The modernisation programme will enhance our operational capabilities and contribution to the growth and competitiveness of the economy. We are grateful for NDB’s support and look forward to a successful collaboration.”

About the NDB
The New Development Bank was created in 2015 by Brazil, Russia, India, China and South Africa to mobilize resources for infrastructure and sustainable development projects in the BRICS and other emerging market economies and developing countries. In 2021, the NDB began expanding its membership and admitted Bangladesh, Egypt, the United Arab Emirates and Uruguay as its new member countries. For more information, please visit www.ndb.int.

COSCO SHIPPING Development has signed an investment, construction and leasing agreement for 42 bulk carriers on 30th August. This milestone marks the largest shipbuilding and leasing transaction since the company transformed into a shipping industry and finance operator in 2016.

According to the transaction, the company will entrust a subsidiary of COSCO SHIPPING Heavy Industry to invest in the construction of 20 bulk carriers and CSSC Chengxi to invest in the construction of 22 bulk carriers, including five 64,000-ton ships, two 82,000-ton ships and 35 80,000-ton ships, with a total ship order value of more than RMB 14.3 billion. These ships will be delivered in succession from 2026 to 2027 and will be leased to COSCO SHIPPING Bulk for a long term. The ships in this transaction are energy-saving and environmentally friendly green ships, some of which are methanol-ready environmentally friendly bulk carriers.

In the face of the ship leasing market with both challenges and opportunities in recent years, COSCO SHIPPING Development has actively seized the opportunity of the green and low-carbon transformation of the shipping industry, studied and explored the market potential in the sub-sectors, and accurately matched customer needs to provide solutions.

As an industry and finance operator focusing on the main line of the shipping and logistics industry, the company currently owns more than 140 ships and has layouts in multiple sub-sectors such as container ships, bulk carriers, and multi-purpose pulp ships. Through this transaction, the scale of the company’s high-quality ship assets will leap forward significantly, after the company ordered bulk carriers and multi-purpose pulp ships in the early stage. The company invested in high-quality shipping capacity with newer ship types, green and environmentally friendly, reasonable configuration and strong versatility, laying the foundation for further consolidating the high-quality assets of the company’s shipping leasing business, highlighting the strategic positioning of shipping industry and finance operators, and helping the company to accelerate its progress towards the goal of value-oriented industry and finance investors and innovative industry and finance service providers.

In the first half of this year, Port of Klaipeda handled 16.4 million tonnes of cargo. Compared to the same period last year, this year’s volume is up by half a percent. The vast majority of these volumes were Lithuanian import and export cargoes, with road transport being the main mode of transport through the Port of Klaipeda.

“The Port of Klaipeda, despite the storms that have been raging in recent years, has set sail and is sailing into calmer waters. Looking at the first half of this year, Klaipeda has a 37% market share among the Baltic ports, and we are experiencing a stabilising situation in cargo handling. We are analysing the figures and the competitive environment and we expect the next six months to be even more successful for the Port of Klaipeda: the new crop of grain starts, the fertiliser sector is also positive, and the “Independence” has already returned from repair. We hope to maintain the container handling rates, to surpass the 1 million TEU container handling barrier and to be a member of the millionaires’ club for the third year in a row,” says Algis Latakas, Director General of Klaipeda State Seaport Authority.

The most significant influence on the stable cargo performance at the Port of Klaipeda in recent months was the growing cargo of ro-ro (+22% or 539 thousand tonnes), construction materials (+59% or 272 thousand tonnes), scrap metal (+25% or 149 thousand tonnes), timber and forestry products (+40% or 113 thousand tonnes), and fertilisers (+32% or 198 thousand tonnes) transported by ferries. Due to the sanctions in force against Russia and Belarus, the Port of Klaipeda is no longer used for the transhipment of fertilisers, but the fertilisers produced by the Lithuanian fertiliser manufacturers – “AB Achema” and “AB Lifosa” – are loaded here. In January–Junethis year, the volume of this cargo, both in liquid, bulk and packaged form, was 32% higher than in the same period last year. The largest shipments of fertilisers in the first half of the year were to and from the United Kingdom, Germany and Denmark. The number of ships increased, with 2,638 ships (dry bulk carriers, tankers, ferries, cruise ships, small ships, etc.) calling at the port, or 3% more than in the same period last year.

In the first half of this year, compared to the same period last year, container TEU cargo (-7% or 38,213 thousand tonnes), grain (-13% or -262 thousand tonnes), oil products (-7% or -152 thousand tonnes), LNG cargo (-34% or -400 thousand tonnes) dropped, which was mainly due to the departure of the LNG terminal “Independence” for a month-long inspection and repair in the dry dock in Denmark. In May, Port of Klaipeda did not handle any LNG gas at all. The largest LNG cargoes were imported from Norway, the USA and Finland. This year, the number of passengers using the port’s services was 7% lower than last year, with more than 136,000 passengers.

This year’s 7% drop in TEU container cargo was due to several factors: a decline in transit of Ukrainian containers with used cars from the US, the end of car shipments to Belarus due to the new sanctions, and a contraction in Lithuanian industrial exports.

Of the 16.4 million tonnes of cargo handled in the Port of Klaipeda in the first half of this year, the majority of cargo was transported by road (67%), while 23% was transported by rail. The remainder consisted of LNG transported by pipeline and ship-to-ship cargo.

In the first half of this year, the Port of Klaipeda had trade relations with 47 foreign countries. The main shipments were to and from the following countries: Germany (2.8 million tonnes), Sweden (2.6 million tonnes), Poland (1.9 million tonnes), the Netherlands (1.1 million tonnes) and Belgium (0.8 million tonnes). Cargo flows to and from these five countries accounted for 56% of the port’s cargo volumes handled in the first half of this year. The main shipments to and from Germany were ro-ro cargo, containers and agricultural products, while the main shipments to and from Sweden were ro-ro cargo, building materials and containers. With Poland, the largest cargo flows were recorded in containers, petroleum products and fertilisers.

The vast majority (95%) of the cargo handled in the first half of this year in the Port of Klaipeda was Lithuanian import and export goods. Transit accounted for only 5% of freight.

In the first half of this year, “AB Vakaru laivu gamykla” repaired 47 ships, 5 of which were modernisation projects, and “UAB Klaipedos laivu remontas” carried out repairs on 11 medium tonnage ships.