Company Announcement - Newly-appointed Managing Director of the DCD Marine Cluster, Gerry Klos, is looking forward to a new growth phase in South African shipping and ship repair as the government prepares its recommendations on Operation Phakisa.  “The outcomes of Operation Phakisa could have a major impact on the growth of the ship repair and ship building industries in South Africa, and the DCD Marine Cluster is preparing to align its strategy accordingly,” Klos says.

The DCD Marine Cluster, part of the DCD Group, has recently streamlined its managerial functions in order to enhance operational efficiency.  A key change is the appointment of Klos as Managing Director of the Cluster.  Previously General Manager of DCD Marine Cape Town, Klos is embracing his new role in leading the Cluster into the future. “Fundamental to our future strategy is the integration of the various entities which function as part of the Cluster.  Such integration will result in a stronger joint market focus, as well as an increase in operational efficiency through the elimination of duplication,” he says.

In his new role, Klos will be responsible for Elgin, Brown and Hamer South Africa, which includes facilities in the ports of Durban, Cape Town and East London, as well as DCD Marine Cape Town (with facilities in Cape Town and Saldanha Bay).  EBH Namibia, in which the DCD Group has a minority shareholding, forms the third part of the cluster. Thus, Klos sees as his immediate priority the streamlining and integration of the businesses with a view to growing the market. “There are distinctly different cultures between our businesses which are also driven by the different market sectors the businesses operate in. The challenge lies in uniting these cultures in such a way that they jointly lead to further growth, profitability and innovation,”  Klos comments. DCD Marine Cape Town has enjoyed a particularly busy twelve-month period, with a number of major projects at A-berth in Cape Town.  The company recently completed repairs and upgrades to the Scarabeo 7, owned by Saipem, a project which brought more than R1 billion worth of business to the Western Cape economy.  Klos is looking forward to even more activity in 2015; and further contributions to the growth not only of the ship repair and oil and gas industries locally, but to the South African economy as a whole. “The government has prioritised coastal and ocean resources as a basis for its long-term economic developmental programme, Operation Phakisa,” notes Klos. “We are excited about this strategy and believe we have enormous potential to become a serious role-player in the international shipping industry.” Klos is mindful of the challenges which South African shipping faces, however, and cites one of the most pressing challenges is a lack of availability of appropriate skills.

“The availability of the necessary skills and expertise locally to execute projects at a level of complexity typical to the maritime industry poses a great challenge.  Skills development and job creation is critical to realising the potential of the ship building and ship repair industry in this country, and is one of the areas expected to be addressed in the recommendations in Operation Phakisa. “In South Africa, the current capacity of our ship building facilities also poses a challenge, as facility space constraints mean that the maritime industry cannot complete projects on vessels larger than120 metres in length.  Infrastructural development will enable us to engage in large-scale commercial ship building projects,” he comments. The DCD Marine Cluster expects significant growth opportunities to emanate from the new Saldanha Bay Industrial Development Zone following the construction of a new quay in 2017/2018. Klos sees this as an important step in opening up opportunities for local players in the industry. “The local industry is in strong competition with the international ship building and offshore repair industry.  The increase in maritime traffic around the tip of Southern Africa has increased the demand for ship repair, particularly in the oil and gas sector,” Klos notes.  “And while the DCD Marine cluster offers world-class facilities and the capacity to provide internationally competitive project services, one cannot overstate the importance of sustainable job creation and ongoing skills development. It is only on this basis that the Cluster can successfully compete in the international shipping industry.”

The exact direction of DCD Marine Cluster’s future strategy will be guided, to a large extent, on government’s recommendations regarding the outcomes of the Operation Phakisa report. The company’s focus, for now, is on ensuring that it is well positioned to participate in growth of the shipping industry and its capacity to contribute meaningfully to the wider economy. “While each member of the DCD Marine Cluster will retain its own brand identity and core competency, by further integrating the businesses and streamlining our operations, we will be in a stronger position to embrace a future of opportunity in international shipping,” Klos concludes.