Shipbuilders in Row Over Tender Delay

South Africa’s three biggest shipbuilders are up in arms over the “lack of transparency” in an R80 million plough tug tender which has been delayed by Transnet for at least three years.

Southern African Shipyards, based in Durban, and Cape Town-based Damen and Nautic Africa are concerned about the delay in awarding the contract, which has been repeatedly put out to tender and then withdrawn.

Transnet has denied any lack of transparency, saying its tender process was fair and open.

It comes as the government presses ahead with unlocking South Africa’s blue economy through Operation Phakisa, which according to President Jacob Zuma has the potential to contribute R177?billion to the country’s Gross Domestic Product by 2033.

It also aims to create more than a?million jobs.

According to tender documents, the plough tugs would form part of Transnet’s dredging fleet.

The tugs are bed levellers which flatten out peaks and troughs left by dredgers on the sea floor.

Transnet awarded the contract last year to an East London company, but the decision was reversed when it was discovered the company could not deliver on it.

Chief executive of Southern African Shipyards, Prasheen Maharaj, said: “The issuing and cancellation of tenders is very disappointing for industry.

“It takes a lot of time, effort and money to repeatedly tender and all of this is lost. It’s something we cannot afford in this harsh economic climate.”

He said they wanted a fair and transparent tender process, which would help companies decide whether to bid or not.

Maharaj has previously said the shipbuilding industry was “haemorrhaging” jobs and called on the government to streamline its procurement processes to create jobs.

Damen chairman, Sam Montsi, agreed.

“It is only when tenders are processed, adjudicated and awarded professionally, transparently and fairly, that the shipbuilding industry can help our government realise the objectives of Operation Phakisa,” he said.

“This kind of experience with tenders is not only costly, but discouraging to the private sector,” he said.

Chief executive of Nautic Africa, James Fisher, said he was disappointed with what had been happening and noted that shipbuilders committed considerable money and resources when they prepared for bidding, only to have their efforts disregarded.

“While we want to support start-up companies, sophisticated jobs need to go to the more established companies, and in doing so smaller companies can benefit from the supply chain,” Fisher said.

Transnet’s chief financial officer, Mohammed Abdool, said the tender formed part of the organisation’s dredging services fleet replacement programme, which was worth more than R2 billion.

Responding to the complaints of the shipbuilders, Abdool said: “Transnet National Ports Authority acknowledges the competency of the country’s shipyards and promotes the usage of these through the localisation and supplier development requirements called for in all our tenders.

“A local contractor… was in fact awarded this tender and local companies have again been able to bid for the revised tender presently being adjudicated and planned to be awarded by the end of July 2016.”

He said the plough tug was not a direct deliverable of Operation Phakisa, but did contribute to its wider objectives.

Abdool denied that the tender process lacked transparency.

“All Transnet tenders and awards follow an open and public process in line with Transnet’s governance and procurement processes.”

Source: IOL