Tender ‘irregularity’ shuts Durban shipyard

Terry Hutson THE SHIPYARD that built South Africa’s latest fleet of tugs has closed its doors after a frustrating year of procrastination, confusion and a hint of impropriety. The news was confirmed on Monday morning (November 17) as this issue went to press. Durban-based South African Shipyards, which last year completed the fifth new Voith tug for the NPA on budget and ahead of time, was requested three times this year to extend the closing date on its tender for two tugs intended for the new port at Ngqura, with no reason having been offered. The tender was originally issued in April last year but was cancelled in November. New tender documents were issued with work due to have begun in June this year for completion in July 2004. Since then the tender has been postponed on three other occasions with the indecision by the NPA forcing the Durban company to place its staff on unpaid leave since October 1, while all management went on half time. At the end of September the NPA requested SA Shipyards (and presumably other tenderers) to extend their offer to build by 30 days, at January 2003 prices. At the beginning of November this was extended by another 30 days. According to a shipbuilding industry spokesman such requests are unreasonable and unworkable. “Costs keep rising and they ignore this and the fact that we are reliant on sub-contractors who also have to extend their prices for another period. Some of them are unable to do so - materials keep increasing and the rand/dollar rate fluctuates. In the meantime the main shipbuilder overhead remains but he is unable to pay wages and has to let skilled workers go.” Repeated attempts by FTW to obtain comment from the NPA were ignored although a complaint was subsequently raised with the shipbuilder who was accused of having “run to the media.” According to reliable sources the NPA was preparing to award the contract, worth in excess of R100 million, to a Chinese shipbuilder in partnership with a Black Economic Empowerment grouping, one with no known expertise in shipbuilding. After certain inconsistencies in the tender documents were leaked, including the fact that the tugs would be built in China and merely shopfitted in SA, the postponements were announced. There are also unsubstantiated reports that a senior NPA official from the marine department is under investigation on issues relating to the tug tender.