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2018 Boating South Africa

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2018 Boating South Africa SOMETHING BIG IS ON Messe Frankfurt, the third largest trade show organiser in the world with hundreds of events annually, have taken over The Johannesburg THE HORIZON Boat and Water Show and the Cape Town International Boat Show. SEPTEMBER 2018 OCTOBER 2018 For all enquiries please contact Kathryn Frew on [email protected] or 010 599 6171 SOMETHING BIG IS ON Messe Frankfurt, the third largest trade show organiser in the world with hundreds of events annually, have taken over The Johannesburg THE HORIZON Boat and Water Show and the Cape Town International Boat Show. SEPTEMBER 2018 OCTOBER 2018 For all enquiries please contact Kathryn Frew on [email protected] or 010 599 6171 1 FOREWORD 4 EDITORIAL 9 MANDELA BAY COMPOSITES CLUSTER 13 NURTURING THE NEXT GENERATION OF BOAT BUILDING ARTISANS 15 THE BOATBUILDING ACADEMY 17 2.4 MILLION STROKES 21 CRAFTING SOUTH AFRICA’S VISION FOR DISABLED SAILING – THE S14 PROJECT 26 RECREATIONAL BOAT BUILDERS 52 COMMERCIAL BOAT BUILDERS 60 EQUIPMENT AND DISTRIBUTION 90 BUSINESS SERVICES & BROKERS 104 SAILING SCHOOLS/ ACADEMIES 109 DIRECTORY LISTING 119 BUYERS GUIDE: FOREIGNERS BUYING A BOAT IN SA 123 BUYERS GUIDE: SA FOREIGN ECONOMIC OFFICES 127 YACHT CLUBS FOREWORD BY THE DEPUTY DIRECTOR-GENERAL OF THE INDUSTRIAL DEVELOPMENT DIVISION The South African marine manufacturing industry comprises not only of the manufacturing of ships and boats but also the repairing of vessels and rigs. The manufacturing of these products and services are aimed to serve both the commercial and leisure market segments. It is important to note that the manufacturing of ships and boats differ from that of other traditional manufacturing sectors since manufacturing takes place over an extended time frame requiring different skills sets in different time slots. Even though the output is small in quantities and takes on average more than a year to complete the value of projects are high. 1 In the 2011/12 financial year, ship/boat building was identified as a priority sector as it has emerged that the sector is a significant contributor to the South African economy. Research has indicated that the manufacture and repair of ships and vessels in South Africa is viewed as a highly strategic industry with strong and extended linkages for economic growth and employment multipliers. In 2013 the Department of Trade and Industry (the dti) undertook research on the feasibility of designating working vessels for local procurement. This process culminated in the designation of working vessels with a 60% local content. To this effect, an instruction note was issued by the National Treasury on 21 August 2014. The rationale behind designating working vessels for local procurement lies with the fact that large amounts of vessels are being procured by government and State-Owned Companies (SOCs). Considering the challenges of unemployment in South Africa and the opportunity offered by public procurement of working vessels, designation of the sector can resuscitate the local ship/boat building industry and thus boost job creation across numerous sub-sectors and value chains. The ship and boat building sector desk is continuously looking at ways that can be used in the local manufacturing sector to develop and grow the industry. The main objective of this industry guide is to provide information on a list of highly skilled ship and boat manufacturers, component manufacturers and ship repairers in South Africa. In conclusion, the dti has come far since 2011 when the Industrial Development Division (IDD) allocated permanent resources to assist with the development of the ship and boat building and associated services industry. Great strides have been made to resuscitate the industry and to create and save sustainable jobs in the marine manufacturing industry. Garth Strachan Deputy Director-General: Industrial Development Division 2 OVERVIEW 3 Cape (predominantly Port Elizabeth), Although the The South African Marine coastal regions have the largest contribution towards Manufacturing Industry boat manufacturing, the Gauteng province also Over the past couple of decades, the South contributes to industry manufacturing – specifically African boat building industry has gained in the smaller craft and motor boat market for inland international credibility, regularly winning use (Veich, 2013). The Western Cape is the largest international awards and building a strong marine manufacturing centre within South Africa, reputation among international boat designers generating over R1 billion in 2014 in export revenue and consumers. A notable success is that South (Quantec, 2015), and houses approximately 70% Africa has grown to become the world’s second of boat builders. About 18% of boat builders are largest producer of recreational catamarans, based in KZN and 12% in the rest of the country, after France. This international acclaim is not but particularly in the Eastern Cape (Urban-Econ only for the final produced watercraft (including Stakeholder Database, 2015). The main commercial other vessels) but additionally for components centres for marine manufacturing within the Western such as sails and masts. Additionally, South Cape include Cape Town and small towns such as African companies have developed capacity in St. Helena Bay, Saldanha Bay, Atlantis, Kommetjie, niche segments in commercial and public sector Simon’s Town, Swellendam, George, and Knysna. In markets, for example, fire-fighting boats and crew KwaZulu-Natal, Durban is the leading centre for marine transport boats for the oil and gas industry (Kaiser manufacturing. Boatbuilding operations are also Associates, 2012). located in Park Rynie and Scottburgh on KwaZulu- Natal’s South Coast. Production centres in the Overall, numerous reports have shown that the Eastern Cape include Port Saint Francis, Port industry has undergone an efficient industrial Elizabeth, the Port of Ngqura (Coega), Port Alfred restructuring that makes it internationally and East London. A small proportion of boat competitive on price, quality (both in finish and manufacturers is situated in Gauteng, with the sailing abilities) and durability. The South African province’s major manufacturing operations located boat building industry is an export-oriented in Benoni, Walkerville, and Randvaal. industry. However, like the global trade market of recreational and leisure boats, the South African marine manufacturing industry was negatively Imports and Exports impacted by the economic crash of 2008 due to Based on the Quantec Research Database, SA its heavy reliance on exports (Laubscher, 2011). Export Values, in 2015, yachts and other leisure In 2014, the South African marine manufacturing and recreational boats were the most popular type industry contributed only 1% of the global exports of watercraft exported, which contributed to 84% in yachts and other vessels for pleasure and (R1,504,954,400) of total export value for ships, sports (Trademap, 2015). In comparison with boats, and other floating structures in 2015. This Italy, which contributed 21% of global exports, it category (yachts and other leisure and recreational is evident that the South African marine industry is boats) has shown significant growth in export value small relative to the global industry. since 2010. In 2010, the value of this category was R677,765,677 and grew to R1,504,954,400 in 2015. This accounts for an average annual growth of 14% Geographical Distribution of Marine within this category. The graph on the next page on Manufacturing Industry the next page illustrates the percentage contribution The marine manufacturing industry is largely of each of the subcategories of the yachts and other based in the coastal regions of South Africa, leisure and recreational boats category regarding i.e. Western Cape (predominantly Cape Town), exports and imports. KZN (predominantly Durban) and the Eastern 4 IMPORTS AND EXPORTS OF YACHTS & OTHER VESSELS FOR PLEASURE OR SPORTS, 2015 68,6% Based on the graph, sailboats 70% dominate South Africa’s exports in the category: “yachts and other vessels 60% 55,3% for pleasure or sports”, comprising of 50% 68.6% of South Africa’s total exports in this category in 2015. Motorboats 40% 33,5% follow this at 19.6%, and inflatable pleasure craft at 6.4% and other crafts 30% 19,6% contributing to 5.4% of South Africa’s 20% total exports of yachts other vessels 6,4% 7,8% for pleasure or sports. 10% 3,4% 5,4% 0% Regarding imports, the largest Inflatable Sailboats, with or Motorboats, other than Other without auxiliary motor outboard motorboats percentage of imports is related to other crafts (this includes for example Exports Imports Source: Quantec, 2016 rowing boats, canoes, sculls, etc.) with 55.3% of imports related to The following map illustrates the key markets for South African this category. This is followed by Exports within the yachts and other leisure and recreational motorboats (33.5%), inflatables (7.8%) boats main category (including subcategories motorboats). and sailboats (3.4%). MAP: SOUTH AFRICA EXPORT MARKETS FOR YACHTS AND OTHER LEISURE AND RECREATIONAL BOATS, 2015 Share in value in South Africa’s export (%) British Virgin Islands 45% Italy 16.6% U.S.A 14.1% United Kingdom 4.3% Australia 3.3% Greece 2.6% France 2.4% Share in value in South Africa’s export,% Seychelles 1.9% 20 - 50% Malaysia 1.7% N/A 0 - 1% 1 - 5% 10 - 20% Line thickness is indicative of percentage 5 MAP: SOUTH AFRICA IMPORT MARKETS FOR YACHTS AND OTHER LEISURE AND RECREATIONAL BOATS, 2015 Share in value in South Africa’s imports (%) USA 49.3% Australia 10.5% United Kingdom 7% China 6.1% France 5.5% Mexico 4.5% Canada 4.4% Italy 3.6% Import value, ZAR thousand United Arab Emirates 2.2% N/A 0 - 723 ZAR thousand 723 - 3,617 ZAR thousand 3,617 - 7,235 ZAR thousand Japan 0.8% Line thickness is indicative of percentage 7,235 - 14,470 ZAR thousand 14,470 - 36,174 ZAR thousand > 36,174 ZAR thousand 2,2% 0,9% 3,2% It is important to note that from the interviews 3,0% conducted approximately 60% of boats manufactured outside of the Western Cape are sold within the local market.
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