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R Adm Bernhard H. Teuteberg Chief Director Maritime Strategy and

R Adm Bernhard H. Teuteberg Chief Director Maritime Strategy and R Adm (JG) Bubele Mhlana Director Fleet Force Preparation South African Navy.

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R Adm Bernhard H. Teuteberg Chief Director Maritime Strategy and

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  1. R Adm Bernhard H. Teuteberg Chief Director Maritime Strategy and R Adm (JG) BubeleMhlana Director Fleet Force Preparation South African Navy BRIEFING TO THE PORTFOLIO COMMITTEE ON AGRICULTURE, FORESTRY AND FISHERIES ON THE STATUS of daff/sa navy partnership

  2. Aim of Presentation The aim of this presentation is to provide the Portfolio Committee on Agriculture, Forestry and Fisheries an insight into the present status of the DAFF vessels being operated by the SA Navy

  3. SA Navy Delegation R Adm B.H.Teuteberg – Chief Director Maritime Strategy R Adm (JG) S.Pillay – Director Maritime Plans R Adm (JG) M.Lobese – Director Fleet Logistics R Adm (JG) B. Mhlana – Director Fleet Force Preparation

  4. Scope of the Presentation 4 Introduction Timeline of Main Activities Memorandum of Understanding Management Responsibility Vessels Handed Over Financial Status Status of Vessel SAS AFRICANA Impact on Fishing Industry

  5. Scope of the Presentation 5 Private Sector Contract Outcome Recent Meeting Between DAFF/SA Navy Lessons Learnt Recommendations Conclusion

  6. Timeline of Activities • 30 Aug 11: Initial meeting between officials in Cape Town (decision to refer matter for approach between relevant Ministers) – No further contact • Indications that contract has been awarded: no further correspondence • Approach by MAFF to MOD&VM on 5 March 2012 • 22 March 2012: Meeting between officials from DAFF and SA Navy • In good faith agreed to cooperate • Existing contract expires on 31 March 2012 • 30 March 2012: MOU signed between relevant Ministers • 13 April 2012: SLA signed between parties 6

  7. Memorandum of Understanding • The SA Navy shall perform the shipping management functions • Initial period of 12 months • Subject to the Defence Act • Monthly re-imbursement of all costs associated with shipping management function • Vessels to be handed over on or before 31 March 2012 • A comprehensive audit to be conducted on each vessel by an accredited third party • SLA to be signed 7

  8. Management Responsibility • Vessels being Operated under the Defence Act • Shipping Management Functions: • The crewing (manning) of the vessels (not specialised staff; eg scientists, fishing inspectors, etc) • The technical management of these vessels (maintenance, repair and life-cycle management) • The provisioning of these vessels • The bunkering of these vessels • The operation of these vessels • The accounting of all aspects relating to these functions

  9. Vessels Handed Over to the SA Navy

  10. Financial Status

  11. Status of Vessels

  12. SAS AFRICANA

  13. SAS AFRICANA: 30 years old

  14. Life-cycle Concepts Design, Develop, Purchase Construction SAS AFRICANA 20% 80% CASH FLOW Disposal Operation Maintenance Development Acquisition Start up Disposal LIFE (YEARS)

  15. Recommendations wrt SAS AFRICANA Accept important role that vessel is playing Make decision to replace her within 5 years Commence project study immediately with associated costing Allow SA Navy to conduct proper refit; extend life by 5 years If necessary lease suitable vessel to conduct surveys in meantime Create ownership for vessel

  16. Impact on Fisheries Industry Answers can only be provided by DAFF

  17. Appointment of SmitAmandla for Managing Transferred Vessels The SA Navy is not able to comment on the contracting of any entity within the private industry to conduct the shipping management function The SA Navy believes that it can and should conduct the shipping management function for vessels belonging to the Government Create permanent home and management responsibility for vessels; not just operating

  18. Outcome of Recent Joint Meeting between DAFF and SA Navy On strategic level: extremely positive Understand that on the tactical level still some teething problems Some of the misunderstandings resolved Action list compiled and being addressed Contact at all levels Can only work if this venture is conducted as an equal partnership.

  19. Lessons Learnt • Only one command and control system to be used • DAFF vessels can become a specific Squadron within the SA Navy: • Vessels under configuration control • Maintenance and repair integrated • Naval Dockyard can become more effective and efficient • Ownership • Supplemented by Navy patrols • Experiential learning for younger Navy members

  20. Conclusion

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