OPCSA p r e s e n t a t i o n t o Portfolio Committee on Minerals and Energy

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OPCSAp r e s e n t a t i o n t oPortfolio
Committee on Minerals and Energy
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Background

• Minister of Minerals Energy identified
  shortcomings in oil pollution control
• OPCSA was transformed into its present format
  during October 2002
• OPCSA started to operate on 1 April 2003 as a
  subsidiary of CEF
• During 2004 the CEF Board expressed its concern
  regarding the loss that OPCSA was incurring
• A market survey was conducted to determine the
  need, if any, for oil pollution response services
  in SA
• A strategic planning session, attended by the
  Board, was held on 2829 January 2005 to discuss
  the findings of the survey and determine the way
  forward

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Entities Surveyed during Market Survey

• National Ports Authority
• Department of Environmental Affairs and Tourism
• South African Maritime Safety Authority
• BP
• Engen
• PetroSA
• Sapref
• Sasol
• Shell
• Smit Marine
• Total
• Various Independent Environmentalists
• Harbour Masters in Saldanha, Cape Town Durban

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Key findings of Market Survey

• Marine experts reported that South Africa has a
  very hazardous coastline
• The biggest risk for an oil spill appears to be
  bunker fuel
• South Africa has no real tier 3 response
  capability
• In most instances the tier 2 response capability
  is also suspect
• Overseas response is available, but only after
  more than 36 hours, which is too late

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Key findings of Market Survey

• OPCSAs capability is larger than all the other
  players in South Africa put together
• OPCSA is the only player that can clean up a
  spill on the open sea
• OPCSA is the only organisation that can easily
  develop a tier 3 capability
• All respondents lamented the fragmented nature of
  current oil spill legislation
• Most respondents were unaware of OPCSAs
  capabilities

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Demand for OPCSA

• Opportunities in other harbours to provide a
  response service
• Offshore oil rig protection
• Bunker fuel spills in most harbours
• Most of the respondents reported that OPCSA must
  develop a National response infrastructure
• Locations where OPCSA should establish response
  capabilities
• Cape Town
• Mossel Bay
• Port Elizabeth
• Richards Bay
• Durban

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SWOT Analysis - Strengths

• Largest player in South Africa
• Existing well maintained equipment and facilities
• Highly skilled staff
• Only offshore capability in SA
• Responsiveness
• Proximity to market
• Continuous experience
• Proven track record
• Knowledge of coastal and local conditions

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SWOT Analysis - Weaknesses

• Not sufficient funds
• No presence in other ports
• Lack of marketing
• Concentrated skills basis
• Transformation/employment equity at senior level

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SWOT Analysis - Opportunities

• OPCSA is well placed to act with full Government
  authority
• Big market opportunity if we move fast
• Alliances with international Oil Pollution
  Response entities
• Getting buy-in and involvement of all role
  players
• Green donor funding and support
• Provide DEAT with certificate after event
• OPCSA sets standards with SABS

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SWOT Analysis - Threats

• Liability
• Industry apathy/complacency
• Low risk perceptions
• Overseas will provide myth

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Vision of OPCSA

• To be the cost effective State designated oil
  spill response organisation for large oil spills
  on land and sea in SA, and to be the service
  provider of choice for smaller spills and oil
  pollution measures in Sub Saharan Africa

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Mission of OPCSA

• The vision will be achieved through the provision
  of a cost effective rapid response service in
  cases of emergency on land and sea, supplemented
  by the delivery of continuous prevention,
  consulting and training services of the highest
  quality, in line with customer requirements.

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Goals of OPCSA

• To be the designated oil spill response entity in
  South Africa
• To build capacity to deliver on its mandate to
  re-act cost-effectively to all tier 2 3 spills
  in SA
• To be self funding in 5 years
• To become a recognised and esteemed brand in
  maritime oil spill response
• To have a 90 share of the oil spill control
  market in SA
• To operate on a supplier of choice basis in 2 Sub
  Saharan African countries in 4 years

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Where must OPCSA be housed?

• DME already has a close relationship with the Oil
  Industry
• All the products handled by the Oil Industry will
  have a negative environmental impact when spilled
• Oil pollution control is important to the image
  of DME
• DMEs relationship can be expanded and
  strengthened if oil pollution control is included
• The above will ensure a single point of
  responsibility on all crude oil related
  activities
• OPCSA provide management services to SFF, another
  subsidiary of CEF
• Recommendation to remain a subsidiary of CEF

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Major Challenges

• Current legislation is confusing and does not
  provide enabling framework that is needed for
  rapid oil spill response
• There is no integrated oil spill contingency plan
• Apparent reluctance/complacency of certain role
  players in the oil industry
• Myth that South Africa do not have an oil
  pollution risk

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Main Features of Business Plan

• OPCSA must
• become the designated national oil spill response
  organisation
• expand its tier 3 capabilities
• expand to the ports identified
• expand its commercial market
• embark on a major employment equity plan

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CEF Board Approval

• The CEF Board
• Recognized the oil pollution risk in South Africa
• Approved bridging finance for the next Financial
  year, in the interest of South Africa, to enable
  OPCSA to become self sustainable

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Deployment of boom around Tanker
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Oil vessel with Oilfence boom employed