A 19-company consortium is lobbying South African government to articulate its policy on shipbuilding in an effort to revitalise the domestic industry, which appeared dead in the water following South Africa's reintegration into the world economy six years ago. Since that time, the industry has been battling on and only two South African shipyards remain, namely FarOcean Marine, of Cape Town, which caters for smaller vessels below 45 m, and Southern African Shipyards, which can handle larger vessels. The initiators of the new proposal believe it is now possible to lay the foundation for a viable and growing industry.

Chairperson Mike Hawes of Southern African Shipyards, told Engineering News that the group has requested a meeting with Trade and Industry Minister Alec Erwin in order to reopen the debate as to whether a sustainable industry can be built. They argue that the investment capital to replace the Durban facility would amount to at least R135- million and that, together with the Cape Town yard, the infrastructure base is available to develop a cohesive medium-sized export shipbuilding industry.

Chairperson Mike Hawes of Southern African Shipyards, told Engineering News that the group has requested a meeting with Trade and Industry Minister Alec Erwin in order to reopen the debate as to whether a sustainable industry can be built. They argue that the investment capital to replace the Durban facility would amount to at least R135- million and that, together with the Cape Town yard, the infrastructure base is available to develop a cohesive medium-sized export shipbuilding industry.

In addition, there appears to be an opportunity to link a shipbuilding revival to the National Industrial Participation programme that has arisen from the multibillion-rand arms procurement deal. It is understood, although not confirmed, that the German Submarine Consortium (GSC), which is supplying the South African navy with three Type 209/1400 submarines for R5,354-billion, is proposing an offset involving the building of ships, barges and container vessels in Durban. The GSC is made up of Ferrostaal, Howaldtswerke Deutsche Werft and Thyssen Nordseewerke. It appears that the proposal could involve a scenario whereby it buys German kits, which are then directed to Durban where the local shipbuilding industry completes the steelwork and the installation. It has been calculated that the project could absorb about 8,000 t/y of South African fabricated steel. The project would involve the building of two export vessels a year for the next ten years, and Hawes estimates that it would create 900 direct employment opportunities and a plethora of downstream industry jobs. "The opportunity for other suppliers to add local content value is significantly large to involve major business in the support of the scheme," Hawes enthuses.

Mr. Hawes and the cluster members believe the offset orders will provide the necessary financial and technological base for pursuing other shipbuilding opportunities in South Africa, the region and across the globe. The consortium believes that South Africa is well-placed to receive foreign orders, given the country's increasing access to global markets through trade agreements, its low input costs, it existing infrastructure, and its past record in shipbuilding. "Shipbuilding was once a vibrant industry in Durban and offered direct employment for up to 1 800 people. We believe there is an opportunity to rebuild the sector into an international force," Hawes concludes, adding though that, unless some attention is given to the issue, the entire concept could be sunk.