Investment

SA gets new ship repair facility

Dormac Marine and Engineering launched its new, multi-million-rand composite floating dry dock, Dormac 1, at a traditional maritime naming ceremony in Durban last week.

Dormac Marine and Engineering, a division of Southey Holdings (Pty) Ltd is one of Africa’s largest and internationally-recognised ship repair companies. The launch took place on 2 September.

Allianz Global Corporate & Specialty (AGCS) Africa insured the floating dock during the building phase and while it was being transported to South Africa. The insurance coverage will continue while it is at Durban Harbor’s newly constructed shipyard.

The state-of-the-art dry dock, the first brand new ferro concrete dock to be brought into use in Africa, and the purpose built 175 meter long quay is expected to add to the Port of Durban’s ship repair capacity, taking advantage of the 30 000 ships that sail past South Africa’s coastline and the 12 000 ships that call in at South Africa’s harbours annually.

The move, the single largest investment in Dormac’s history and signifies a new era for the company which has realised a 16-year dream to own and operate a dry dock. The R300 million investment will give the Durban and South African shipping industries a major economic boost as well as create jobs and enhance skills development.

Dormac Managing Director, Chris Sparg, said, “This asset will go a long way toward meeting the demand for ship repair in South Africa’s busiest port.”

“Up until now, Dormac has been turning away between four and seven ships every month due to the lack of ship repair facilities,” Sparg continues, “but the new dock vastly increases Dormac’s docking capacity and flexibility and will enhance the existing Port docking offering.”

Sparg forecasts executing an additional 45 dockings per year – ‘a very significant capacity increase’. The dock is ready for operation and already has six docking orders lined up for September.

“As a leading global insurer, AGCS is pleased to contribute towards the development of the marine and shipping industry in South Africa through our partnership with Dormac on this strategic project. The development is critical to the region’s ocean economy,” said Mark Govender: AGCS Africa Technical Underwriting Manager: Marine. “This latest delivery in Durban is a critical infrastructural component in support of this initiative. AGCS Africa engaged with Dormac directly from the outset of this project utilizing our global network of experts to fully understand the project needs, so we are able to offer much needed technical expertise and support.”

The South African Department of Trade and Industry







Related posts
Investment

Pandemic heightens SA investors’ awareness of sustainability issues

Investment

CPI for September 2021

Investment

Sustainable investment for the man on the street

Investment

New Satrix becomes first fund to track full JSE ALSI Universe