Date of Award
Master of Science in Maritime Affairs
Shipping Management & Logistics
The shipbuilding industry is undoubtedly critical for the economic growth with the offshore market still proving to be the increasingly important market segment of the industry. The industry is labour and capital intensive. The shipbuilding’s ability to contribute towards economic growth enables developing nations to create new job opportunities for local citizens, and as a result reducing poverty. South Africa is a developing nation that is faced with a high unemployment rate of 25%, and has identified the ocean economy as a potential driver to stimulate and sustain economic growth through the marine transport manufacturing industry. However, recent figures in the shipbuilding market have shown that the market is experiencing significant pressure as there have been high drops in fresh orders for new vessels to be built. The newbuilding prices have also dropped to a low that is a huge concern for shipbuilding companies. Thus, this study undertakes a cost-benefit analysis to analyse, investigate and discuss all potentialities and constraints in making South Africa a ship building nation through suitable laws and regulations. This should by no means be a drive to keep the domestic shipbuilding companies busy, but it should be a way that the South African government ensures that the platform for an opportunity for the industry to grow is made available. Furthermore, it is through the proposed regulation that the investment made will follow specific targets, which will have to be met by companies who will have been awarded a government contract. Furthermore, fierce competition should be encouraged amongst the domestic shipbuilding companies at all times.