1.5 Our overarching long-term vision is to develop South Africa to
become one of the world’s top 35 maritime nations by the year 2014. In
1996, 35 countries controlled 93,5% of the world’s merchant fleet. Sad
to say, not a single African country featured on this list. South
Africa’s sea-borne trade during this period amounted to approximately
135 million tonnes. This level of trade closely matches some of the
countries featuring on the top 35 merchant fleet owners.
1.6 The South African Maritime Transport Industry is, therefore, well
positioned to make this vision become a reality and make a broader
contribution towards sub-regional integration in line with the New
Partnership for Africa’s Development (NEPAD) and the African Maritime
Partnership whilst at the same time promoting the participation of
previously disadvantaged communities in this historic continental
initiative.
1.7 Our vision is to substantially increase the number of SA flagged
vessels and develop new South African shipping companies that are
globally competitive - not only in trade between South Africa and the
rest of the world. These companies must eventually be able to compete
with other merchant navies operating on other lucrative international
trade routes, e.g. Far East and Europe and Far East and America.
Developing a World Class Industry
1.8 Our vision is to develop a world-class industry, based on
seamless integration of all modes and multiple networks, that will grow
in size, stimulate economic growth and development, facilitate trade,
comply with international safety standards and deliver efficient and
quality services to customers. Our industry will achieve a significant
increase in black participation in ownership, management and employment
in companies throughout the industry value chain. We will pursue a
growth strategy that prioritises the retention and creation of quality
jobs, most of which are on land-side operations.
1.9 To make this vision become a reality will require a deliberate
strategy to increase access to skills, capital and economic
opportunities and, therefore raise the economic value added (or
productivity) of every employee and enterprise in the industry. This
will require all stakeholders to recruit new black people into the
industry and increase their skills (and those of existing employees) to
best-practice international levels, while creating a supportive culture
for their talents to thrive. It will also require all stakeholders to
facilitate the creation of new black entrepreneurs (and the development
of existing ones) who can participate in economic opportunities
throughout the MTI value chain.
1.10 We, the signatories to this document, believe that every company
in South Africa must embrace Black Economic Empowerment (BEE)
voluntarily, recognising that it is a constitutional, legislative and
legal framework as well as an economic imperative to secure a prosperous
future for all our country’s citizens and, therefore, a larger market
in which to trade. We commit ourselves to embark on a major
communications and marketing campaign that will take this
"Broad-Based BEE Charter for the Maritime Industry" to every
company within our industry to ensure maximum participation by all
stakeholders.
1.11 Accordingly, all private sector stakeholders who commit
themselves to this Charter will agree to have their BEE achievements (in
terms of the indicators in the balanced scorecard) rated by an
independent BEE rating company that is accredited by the National
Department of Transport (NDoT). Public sector organisations will be
monitored and rated in a separate process that will be designed by the
NDoT and the Department of Public Enterprises (DPE). However,
independent BEE rating companies will rate the suppliers of public
sector organisations that do not have such capacity. The independent BEE
ratings will go a long way towards eliminating fronting in the industry.
1.12 Undertakings by all Stakeholders (to achieve this vision)
1.12.1 To promote a collaborative relationship with organisations
such as Proudly South Africa (PSA) and stakeholders in the mining and
liquid fuels industries (The Ship South African Campaign) to persuade
local cargo owners to increase the cargo carried on South African
ships to 25,1% of the total within the next 5 years subject to review
on an annual basis. Within 5 years, SA companies with particular focus
on BEE companies should broker 25,1% of all cargo handled by brokers
within the next 5 years, subject to review on an annual basis.
1.12.2 The new mining and liquid fuels industry leadership should
place shipping on the agenda as part of their strategic level
discussions on export and import programmes. These industries are well
positioned to facilitate the utilisation of black shipping service
providers in joint ventures with established companies. What we are
calling for is a clear strategy/plan for the majority of South African
cargo, going through South African ports to be carried on South
African ships.
1.13 National Government undertakings (to achieve the vision)
1.13.1 Demonstrate its commitment towards developing South Africa
into a leading maritime nation by adopting a more active stance and
increasing its advocacy around maritime matters and the proposed Ship
South African Campaign.
1.13.2 Continue to create an environment that is conducive for the
country to substantially increase its trade (exports and imports) with
the rest of the world. (The level of trade is the main driver of
growth and, therefore, job creation in our industry. Key elements of
an enabling environment for trade include: trade promotion; enhancing
feeder and inland transport connections; improving the quality of
available maritime infrastructure & superstructure and
restructuring to ensure reliability and cost effectiveness of port
operations.)
1.13.3 Resolve legislative and fiscal restrictions, which have a
negative impact on the competitiveness of the South African Maritime
Industry.
1.13.4 Set up structures that will ensure inter-governmental
co-ordination between departments to align their programmes with the
Transport sector wide and MTI BEE Charter processes. Examples of
cross-cutting issues that require interventions across government
departments and agencies include:
-
The Department of Trade & Industry (DTI) Maritime Industry
Strategy.
-
Department of Finance
-
Department of Foreign Affairs – Free Trade Agreements
-
Government through legislative means uses its leverage as
owners of minerals and energy through its legislative means such
as the granting of licenses and contacts to incentivise the
increase of cargo shipped on South African Ships.
-
The country-wide shortage of engineers and artisans across all
disciplines.
-
Increasing awareness within the transport sector about
available government investment incentives and grants.
-
Monitoring of stakeholder achievements in terms of the
indicators in the MTI Scorecard.
-
Convene a stakeholder forum to investigate the scale of BEE
opportunities in MTI – e.g. local private sector operations,
chandling, Freight, Logistics, etc. The stakeholder forum will
also:
-
Engage public and private funding institutions to highlight
opportunities in the sector
-
Make proposals on financing mechanisms; and
-
Investigate, together with other stakeholders in other
Transport sub-sectors, the feasibility of setting up a Transport
Sector Data Bank.
1.13.5 Engage public and private sector funding agencies to develop
innovative funding mechanisms for BEE companies seeking to invest in
the sector. This will require a high-level workshop with these
agencies and major BEE companies to inform them about opportunities
that will emerge in the transport industry, including the maritime
industry, following the adoption of this charter.
1.13.6 Increase awareness among BEE companies in the transport
sector about investment and matching grants, tax allowances and other
incentives that are provided by the Department of Trade &
Industry’s, The Enterprise Organisation (TEO) and investigate the
possibility of motivating for new products that take into account the
unique nature of the maritime industry.
1.13.7 Ensure that the restructuring of Ports to effect new
institutional arrangements must proceed in a manner that results in an
increase in black participation at all levels – in management,
employment and the procurement of services and goods.
1.13.8 Enforce and monitor compliance with existing legislation
that may impact on BEE such as the Employment Equity, Skills
Development and Competition Acts.
1.13.9 Publish an annual report on BEE and job creation within the
Maritime Transport Industry that consolidates various reports and
information from all stakeholders. Stakeholders will use this report
to review progress at an annual Transport Industry BEE Forum.
1.14 Labour Undertakings (to achieve this vision)
1.15 Encourage pension and provident funds, where trade unions have
significant influence, and trade union investment companies to make
investments in the sector to help achieve the ownership targets.
1.16 Investigate opportunities to establish collective investment
vehicles that will make investments in the sector. These investment
vehicles will ensure empowerment of the workers both directly and in
partnerships with other stakeholders in relation to skills for ownership
and management of companies"
1.17 Ensure that workers are empowered through upgrading their skills
base, create opportunities to deploy them into mangement positions as
well as participating in creative employee share ownership schemes.
1.18 Labour should mobilise members to ensure compliance with
existing legislation eg the employment equity, skills development,
labour relations and basic conditions of employment acts. These
companies must be reported to the Transport Sector BEE Forum to take
further action.
1.19 Until such time that BEE Bill is legislated, labour will
mobilise members to identify companies who fail to implement this agreed
MTI BEE strategy and report them to Transport Sector BEE Forum to take
further action.
1.20 Mobilise members to monitor the performance of their employers
in implementing the Growth and Development Summit (GDS) agreement on
promoting local content and/or procurement and supporting the Proudly
South African campaign.
1.21 Monitor the impact of procurement/outsourcing on job creation
and report findings to the Transport Sector BEE Forum.
1.22 TETA undertakings
1.23 Play a more interventionist role to influence training
priorities in the Maritime Chamber.
1.24 Assist stakeholders with analysis of the number of people in a
particular skills set (or job category) broken down by race and gender
1.25 Continuoulsy conduct analysis and update statistics about the
future demand of critical skills sets and the supply side of the
equation.
1.26 Continuously conduct an analysis of the quantity, quality and
nature of MTI training that companies are doing.
1.27 Commit to this BEE Strategy and strive to achieve the targets
set (where applicable) as per the indicators (Management, Employment
Equity, Skills Development, Preferential Procurement and Enterprise
Development) in the balanced scorecard both internally and with specific
reference to service providers.
1.28 Align its mission and vision with the imperatives of BEE and
assist with the implementation and monitoring of the BEE Strategy.
INDICATORS OF EMPOWERMENT
This "Broad-Based BEE Charter for the Maritime Transport
Industry seeks to encourage all stakeholders to pursue an aggressive
transformation agenda according to the broad guidelines set out in the
National Strategy and BEE Scorecard. It is necessary to set different
targets and timeframes for the public and private industry as well,
because the two are at different stages of the transformation process.
1.29 Ownership and Control
1.29.1 Guiding Principle
This principle is linked to the long-term strategy of growing the
domestic Maritime Transport Industry so as to ensure that BEE does not
become a zero- sum game. Ownership is broken down into the capital and
service sectors and can be furthered categorised into foreign
ownership and domestic ownership.
1.29.2 The ownership target set is specifically aimed at the
domestic Maritime Transport Industry, irrespective that there are
different levels of capital intensity within the industry value chain.
This target does not apply to foreign-owned floating assets.
1.29.3 However despite this challenge, we the stakeholders, commit
to increase black participation across the entire spectrum of the
domestic MTI value chain in ownership, management control and
operational involvement and design appropriate funding mechanisms to
facilitate the process.
1.29.4 Foreign Ownership Market
1.29.5 With regard to foreign ownership, foreign companies, with
local representation, will implement BEE strategies, according to the
guidelines provided by the MTI Charter. They will be encouraged to
sell equity in their local operations. However, foreign companies that
are unable to sell equity in their local operations should consider
using the enterprise development indicator and set off achievements in
this regard against the ownership requirement.
1.29.6 Local Ownership Market
1.29.7 The local maritime transport industry, which is mostly
shore-based, the key principle is to increase black ownership of
enterprises across the entire spectrum of the industry value chain.
1.29.8 Stakeholder Undertakings:
1.29.9 Foreign Ownership Market Commits to:
1.29.10 Facilitate enterprise development and SMME development
through accelerated skills development programmes, with a specific
focus on job creation, enterprise development, skills development and
training, preferential procurement and poverty alleviation to
facilitate Black participation in the Maritime Transport Industry.
1.29.11 The Local Based Market
Capital & Services Sectors Commits to:
1.29.12 Seek opportunities to broaden the ownership base of their
companies and ensure that at least 25.1% of equity is in black hands
within 5 years with at least 10% earmarked for women and 5% for people
living with disabilities within the next 5 years.
1.29.13 Restructuring of Port Operations – Concessions.
1.29.14 Guiding Principle
See NASASA comments and consult with NPA and SATAWU – OUTSTANDING
1.29.15 The proposed restructuring of port operations presents an
ideal opportunity to achieve a "quick win" for BEE at an
ownership level. The process must proceed in a manner that includes
all stakeholders working together in a genuine partnership for change.
This requires consultations with all stakeholders, especially labour,
when proceeding with the restructuring of Public Industry Port
Operations (PIPO).
1.29.16 Government Commits to:
1.29.17 Initiate, together with other stakeholders such as labour,
an in-depth study (which is not too time consuming) about the role of
ports in the national economy and proceed with restructuring of ports
using a case-by-case approach (backed by research) that clearly spells
out the trade-offs that will have to be made in terms of achieving the
various BEE indicators e.g. foreign ownership and investment vs job
creation/retention, labour standards and maintaining the BEE gains
that have already been made.
1.29.18 In the event that stakeholders agree on the concession
model, to ensure that between 25.1% of port concessions be awarded to
BEE companies and develop guidelines for the concessioning to ensure
concessionaires achieve BEE objectives and targets.
1.29.19 These targets need to be set on a case-by-case basis. The
concessioning process should not result in the erosion of the BEE
gains made by parastatals over the past few years.
1.29.20 Begin the process of restructuring employment that will
lead to variable excess labour being sourced from a common pool at
equal unit cost in order to reverse the casualisation of port
employment and to improve working conditions and efficiency of
service.
1.29.21 Persuade stakeholders to create permanent jobs rather than
relying excessively on the pool of casual employees. In order to
ensure that more permanent jobs are created, it is recommended that
for every five employees sourced from the pool over a three month
period one permanent job should be created"
1.29.22 Funding Mechanisms
1.29.23 All stakeholders
1.29.24 Facilitate through creative financing mechanisms the
acquisition of equity in their operations by BEE companies.
1.29.25 Creating awareness about Maritime Transport amongst the
traditional banking institutions as well as Public Financing
Institutions.
1.30 Management
1.30.1 Guiding Principle
1.30.2 Our guiding principle is to increase the participation of
black people on MTI company boards and similar governing structures to
create decision-making structures that truly represent the racial,
ethnic and gender diversity of our country. The industry will be
transparent, eliminate unscrupulous business practices including
fronting and fraud, and adopt best-practice corporate governance
policies as outlined in the King II report.
1.30.3 Stakeholder undertakings
1.30.4 The Private Industry;
1.30.5 Under normal circumstances, black ownership will be
accompanied with an equal level of management control. However,
private industry will recruit onto their executive boards and similar
governing structures black directors (who do not necessarily own
equity) to reach a target of at least 40% within 5 years. 40% of the
target, which is equal to 16% of the total, should be earmarked for
black women and 5% for all people living with disabilities on
executive boards and similar governing structures.
1.31 Employment Equity (EE)
1.31.1 Guiding Principle
1.31.2 Our principle is to increase the participation of black
people in top management, senior management and professional and
technical occupations in the Maritime Transport Industry to create a
workforce that truly represents the racial, ethnic and gender
diversity of our country.
1.31.3 This will require that all stakeholders create a supportive
culture within their organizations to be an ‘Employer of Choice’,
attract new talent, facilitate the development of existing employees,
and accelerate their progress into key positions within the industry.
1.31.4 Total compliance with the Employment Equity Act, presenting
accurate figures and statistics on EE to the Department of Labour (DoL).
1.31.5 TETA commits to:
1.31.6 Play a significant role coordinating training in monitoring
and supporting stakeholders in meeting their targets
3.3 Skills Development
3.4.1 Guiding Principle
3.4.2 Our vision is to substantially increase the economic value
added (or productivity) of every employee in the Maritime Transport
Industry through best-practice Human Resource and Skills Development
policies and increase the scale of initiatives aimed at developing
black professionals and technical experts.
3.4.3 Stakeholder undertakings
3.4.4 Government Commits to:
3.4.5 Design and fund a co-ordinated framework and programme for
career awareness and training that leverages off and adds value to
existing initiatives. The awareness programme will publicise and
co-ordinate information regarding scholarships, training resources and
careers in the industry. Other stakeholders will be encouraged to
contribute towards the cost of this initiative.
3.4.6 All stakeholders commit to:
3.4.7 Invest at least 5% of payroll on skills development
initiatives inclusive of associated costs and the current 1% skills
development levy.
3.4.8 Private Industry Commits to:
3.4.9 Identify within and outside their companies a talent pool of
black people for accelerated development through:
- International assignments that provide high-quality operational
and managerial exposure.
- mentorship programmes
- learnerships
- Intra-industry exchange and internship programmes.
- Higher Education and Training.
3.4.10 TETA
3.4.11 Conduct research to Identify scarce management (generic) and
professional (maritime-specific) skills that the industry will require
over the next decade and map out future demand/supply scenarios in the
detailed skills audit.
3.4.12 Conduct research on the supply side of the skills
development equation – i.e. the institutions that will provide the
required management, professional and technical skills. The research
will determine whether the identified institutions have the capacity
to meet the expected demand and whether their curricula meet the needs
of industry. It will make proposals on how to increase the capacity
and relevance of existing institutions and establish whether there is
a need to establish a dedicated institution that will focus on
developing skills for the Maritime Transport Industry.
3.4.13 Introduce, after consulting stakeholders and completing the
skills audit, new categories of learnerships - in management,
technical and professional occupational categories - to help public
and private sector organisations to achieve their employment equity
targets.
3.4.14 Collect and publish detailed and aggregated statistics on
the EE profile of the industry according to occupational level and
occupational category. Also, to monitor the industry’s progress in
meeting its targets and publish an annual report on the EE Profile of
the industry according to occupational level and category.
3.4.15 Assist in unlocking the funds from the National Skills Fund
(NSF) for Management and Learnership Programmes in the identified
areas.
3.4.16 Together with South African Maritime and Safety Authority (SAMSA)
continuously benchmark training programmes against international best
practice.
3.5 Preferential Procurement
3.5.1 Guiding Principle
3.5.2 Our principle is to accelerate procurement from black-owned
and empowered enterprises to create new enterprises with the objective
of growing existing emerging entrepreneurs to produce value-added
goods and services for the industry and increase employment.
3.5.3 Stakeholder undertakings
3.5.4 Government Commits to
3.5.5 Ensure that parastatals and public sector organisations
implement best- supplier development policies and procure at least 60%
of discretionary spending from BEE suppliers within the next 5 years.
3.5.6 Ensure that parastatals and public sector agencies develop
uniform policies on Accounting for Affirmative Procurement and adopt
the guidelines that will be set by the Transport Sector BEE Forum.
3.5.7 Ensure that parastatals and public sector agencies constantly
explore ways of increasing the amount of discretionary spending –
for example by supporting local procurement and/or content in line
with the agreements reached by stakeholders at the Growth and
Development Summit (GDS).
3.5.8 This will require that parastatals and public sector agencies
state in their annual BEE reports the reasons for classifying an item
of expenditure as "non-discretionary." This information
should be disclosed in a detailed statement that reconciles
discretionary and non-discretionary expenditure.
3.5.9 Parastatals and public sector agencies should support the
Proudly South African (PSA) campaign and note the agreement at the
GDS, that PSA is "an important means of taking the message of
local content, fair labour standards, environmental sustainability and
quality products and services to the nation."
3.5.10 As far as possible, parastatals and public sector agencies
should use local as opposed to foreign suppliers and state the reasons
for using a foreign supplier. Where a foreign supplier must be used,
parastatals must use the offset principle to secure the commitment of
these companies to a set of BEE obligations.
3.5.11 The Private Industry
3.5.12 Commission, together with other stakeholders, a study to
establish current levels of procurement from BEE companies and
identify areas where they can achieve "quick wins" to
accelerate BEE.
3.5.13 Procure at least 30% of discretionary spend from BEE
suppliers/operators within the next 5 years.
3.5.14 Adopt the guidelines on Accounting for Affirmative
Procurement that will be set by the Transport Sector BEE Forum.
3.6 Enterprise Development
3.6.1 Guiding Principle
3.6.2 Our principle objective is to help set up, nurture and grow
viable BEE enterprises in the Maritime Transport Industry that are
majority-owned by black operators while developing existing companies.
We aspire to increase investment in black-owned and empowered
enterprises as a proportion of total assets.
3.6.3 Stakeholder undertakings
3.6.4 Government Commits to:
3.6.5 Ensure that parastatals and other public sector agencies use
their procurement policies to stimulate the development of new BEE
enterprises in the sector.
3.6.6 Investigate opportunities to enter into creative joint
ventures with BEE companies.
3.6.7 Private Industry Commits to:
3.6.8 Pro-actively seek opportunities to enter into joint ventures
(and other forms of alliances) and make direct investments in BEE
companies.
3.6.9 Progress will be measured by calculating the value of such
investments as a percentage of net assets. The target is to achieve at
least 25.1% within the next 5 years.
3.6.10 TETA commits to:
3.6.11 Develop training programmes specifically designed for
entrepreneurs in the Maritime Transport Industry.
3.7 Sector Specific Targets
3.7.1 Job Creation
3.7.2 Guiding Principle
3.7.3 There has been significant growth in the Industry over the
past decade with huge increases in volumes of imports and exports, but
the growth of trade has not been accompanied by a similar increase in
job creation. Our vision is to ensure the retention and creation of
quality jobs.
3.7.4 All Stakeholders (who are designated employers) commit to:
3.7.5 Increase the number of learners to at least 5% of their
workforce within 3 years.
3.7.6 TETA Commits to
3.7.7 Expand the number of learnerships that are truly required
based on the sector’s skills requirements identified in the sector
skills plan.
3.7.8 Facilitate easy access to finance and eliminate bottlenecks
and bureaucratic procedures in accessing grants. This would entail
streamlining processes and procedures that are user friendly and
encourages industry to participate more meaningfully in the
learnership programmes.
3.7.9 Social Development
3.7.10 Guiding Principle
3.7.11 The maritime industry is well-placed to make a contribution
towards the development of coastal communities. Our aim is to increase
the impact of companies within the MTI value chain on local
communities.
3.7.12 All Stakeholders commit to:
3.7.13 Participate in social development projects as identified by
HDI employees, which can include HIV/AIDS treatment and prevention,
education, community development, maritime awareness.
3.7.14 Maritime Awareness Campaign
3.7.15 Guiding Principle
3.7.16 Given the lack of awareness about the impact and
contribution of the Maritime Transport Industry in our economy, it
becomes an imperative to embark on a Maritime awareness campaign.
3.7.17 Stakeholder undertakings
3.7.18 Develop an industry – wide awareness campaign to showcase
the MTI and its interrelated activities and demonstrate its impact on
the economy through facilitating trade, economic growth and
development, BEE and job creation.
3.7.19 The awareness campaign should target all South Africans, the
African region as well as the international community. Targeted
campaigns to be spearheaded at Government Departments – Department
of Finance, Department of Trade and Industry, Department of Transport,
National Treasury - schools, tertiary Institutions and financial
Institutions.
3.7.20 . Labour Standards
3.7.21 Guiding Principle
3.7.22 Our guiding principle is to develop an industry that is
characterised by fair labour practices.
3.7.23 All Stakeholders Commit to:
3.7.24 Implement by fair labour practices across the board in line
with the requirements of Basic Conditions of Employment Act, the
Employment Equity Act and the Skills Development Act. Seafarers
employed by South African owners and operators will be afforded the
same rights as other workers.
3.7.25 Ensure non-discrimination against employees living with
HIV/AIDS and allocate funds and resources towards initiatives aimed at
HIV/AIDS education, counselling and treatment in maritime communities
in conjunction with international best practices.
For purpose of clarification and unambiguity the following terms apply
to this Charter:
The process of BEE must result in an increase in the ownership and
control of the economy by black persons. This means that a significant
portion of black persons ownership of assets and enterprises must be a
controlling interest, reflecting genuine participation in decision making
at board executive management and operational levels, and the assumption
of real risk. In this MTI scorecard, direct empowerment focuses on
ownership of enterprises and assets through shares and other instruments
that provide the holder thereof with voting rights and economic benefits
such as dividends or interest payments
Possible to procure goods and services from BEE suppliers. (SEE
definitions as per Integrated Doc version 2)
Refers to all commodities and services were organisations have no
option but to procure from companies (exports, water and electricity,
rates and taxes telephone etc)
A company or group of companies utilising falsified BEE ownership
structures and/or non-value adding BEE partners; in order to unjustifiably
gain preferential points in a business/tender evaluation process. This is
done to the detriment or expense of other bidders and thereby defeating
the BEE objectives of an organization(s).
A core component of this BEE Strategy is the creation and nurturing of
new enterprises by black people, Preferential procurement by both the
State, Parastatals and the private sector is an effective and efficient
instrument to drive BEE. A second element of indirect empowerment is
enterprise development. This can take two forms:
A South African Ship refers to - A South African owned ship; - small
vessels, other than fishing vessels, that are:
Therefore South African ships does not and should not necessarily refer
only to South registered ships only, nor ships flying the SA Flag
The term stakeholders refer to a range of interest groups within the
Maritime Transport Industry who directly and indirectly participated in
this process. These groups included Government, Industry, Parastatals
Agencies, Financial Institutions (Private and Public), Organised Labour,
Civil Society, Associations, BEE operators, suppliers, SMME’s as well
individuals.TETA – Refers to the Maritime Chamber, Forward and Clearing
as well as the Freight Handling Chamber
Member
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