Bunker barge revives SA shipbuilding

The Durban-based shipbuilder Dormac recently carried out the keel-laying ceremony for a new $8.2 million oil bunker barge commissioned by Smit Amandla Marine. Dormac’s empowerment partner, Palisa Investments, owns 25.5% in the company, which procures almost all of its goods and services from black economic empowerment companies.

Pim Zandee, the former chief executive of Smit Amandla, said the specialist marine services company, which is the biggest oil bunker supplier in the Durban harbour, chose Dormac to build the bunker barge as it wanted to prove that the work could be done in South Africa. The barge is due for delivery in September or October next year.

Chris Sparg, the managing director of Dormac, said the contract would create 150 direct jobs and 750 indirect jobs. The company currently employs about 200 workers.

Although the yard has in recent years been focussing on ship repairs, the current boom in international shipbuilding has enabled Dorman to re-enter the newbuilding market since clients were keen to find a slot anywhere that had the necessary skills, even if they could not match China’s prices.