The NMB Maritime Cluster Model

Work in Progress

Developed by the Nelson Mandela Bay Maritime

Cluster (NMBMC) Steering Committee. This model is

based on comprehensive empirical and desktop

research studies of maritime clusters around the

world.

Port Elizabeth Industrial City on the Coast

Managing Conflicts of Interest

We don’t have this problem!

Orchestrating a Maritime Cluster

Clusters do not happen naturally they have to be constructed (orchestrated). Over the last decade, the concept of clustering has become a central concept for analyzing the competitiveness of nations, industries and firms.

The Orchestral Analogy

• To establish an orchestra requires identifying local

musicians who play different instruments and then

locating them in an orchestral structure that allows

for a harmonious blend of sound that ideally

becomes identified with that orchestra e.g. the Glen

Miller Big Band Sound, Mantovani Strings

Orchestra, James Last Dance Band, the Beatles.

• The orchestra requires a conductor who can read

music, understands the lyrics of the composer, has

an ear for music, understands how each instrument

fits into the orchestral structure, and who inspires,

motivates and encourages the local players to give

of their best.

Orchestral Structure

Maritime Cluster Orchestral Analogy

Typical Structure of a Maritime Cluster

A Complete Maritime Cluster in Norway

Ship owner

assurance

Legal

Cla

ss

ing

Bank and finance

Fin

an

cin

g

Eq

uip

men

t pro

du

cers

Sh

ip d

esig

n

Research

Education

ICT

Petroleum

Shipyard

Maritime Cluster Populations consist of

Sub-Sectors and Leader Firms

Typical Sub-Sectors of Maritime Clusters

• Shipbuilding and Ship Repairs

• Maritime Safety & Security

• Marine Renewable Energy

• Ports & Infrastructure

• Maritime Logistics

• Coastal & Marine Tourism

• Scientific & Oceanographic Research

• Fish & Sea Products

• Marine & Maritime Services

• Shipping Finance

• Maritime Law

• Maritime Training & Employment

• Maritime Consulting

Leader Firms

Leader firms are important drivers of the development of clusters. Leader firms are firms with the incentive and ability to make investments with positive ‘external’ effects for other firms in the cluster.

Leader firms encourage innovation, enable internationalization of other firms in the cluster and invest in the quality of the labour pool. In these ways, leader firms contribute to the competitiveness of other firms in the cluster and, as a consequence, the cluster as a whole.

Coordinating Role of NMBMC

• NMBMC Sub-Sectors and Leader Firms can

convene round table conversations as many

times during the year as they want to.

• The role and core function of NMBMC is to

coordinate four Steering Committee meetings

and one Annual General Assembly a year at

which all Sub-Sectors are expected to attend.

• The Steering Committee meetings will focus

on maritime and marine related issues and

activities which require NMBMC intervention.

Sub-Sector Round Table Conversation

Suggested Sub-Sectors for NMBMC

• Ports & Infrastructure Development

• Shipping, Logistics & Transport

• Maritime Research & Innovation

• Maritime Education, Training, Incubation and

Skills Development

• Marine & Maritime Services

• Coastal & Marine Tourism

• Fishing & Fish Processing

The following slides suggest how leader firms

could logically fit into the above sub-sectors.

Ports & Infrastructure Development

Sub-Sector

• Port of Port Elizabeth

• Port of Ngqura

• Coega IDZ

• Transnet National Ports Authority (TNPA)

• Mandela Bay Development Agency

• South African Maritime Safety Authority

(SAMSA)

• Department of Transport (DOT)

Shipping, Logistics & Transport

Sub-Sector

• Coega Development Corporation (CDC)

• Nelson Mandela Bay Business Chamber

(NMBBC)

• Nelson Mandela Bay Municipality (NMBM)

• NMMU Department of Logistics Management

• Port Elizabeth Naval Command

Research & Innovation Sub-Sector • South African Environmental Observation Network

(SAEON)

• South African Institute for Aquatic Biodiversity

(SAIAB)

• Chair of the Law of the Sea and Development in

Africa

• NMMU Coastal and Marine Research Unit

• African Centre for Capacity Development in Ocean

Governance (AfriCOG)

• Agulhas and Somali Current Large Marine

Ecosystems (ASCLME)

• CSIR Composites Cluster

CSIR Composites Cluster

Commercial,

general and

military aviation

Aerospace & Defence

Composites Forum

Satellites

Sensors and

weapons

systems

Ballistic

composites

Armoured

vehicles

Naval

vessels

Maritime & Wind

Energy Composites

Forum

Yachts and

sail boats

Wind

turbines

Oil rigs

Small water

craft

Industrial Composites

Forum

Harbours

(Petro-) chemical

installations

Building and

construction

Housings,

enclosures and

covers

Land-based transport

Composites Forum

Mining

Canopies

Vehicle

conversions

Sports cars

and racing

Trains

Polymer

concrete

Sanitary

ware Trucks

Buses

Passenger

vehicles

Solar and electrical

vehicles

Composites R&D

Forum

Composites

Suppliers Forum

Maritime Education, Training, Incubation &

Skills Development Sub-Sector

• Centre for Integrated Post-School Education

and Training (CIPSET)

• Siyaloba Training Academy

• Technical and Vocational Education and

Training (TVET) Colleges

• NMMU Department of Development Studies

Diploma in Maritime Studies

Marine & Maritime Services

Sub-Sector

• South African Association of Freight

Forwarders (SAAFF)

• South African Association of Ship Operators

and Agents (SAASOA)

• Port Elizabeth Harbour Carriers

• Eastern Cape Reefer Container Operations

Forum (ERCOF)

• National Sea Rescue Institute (NSRI)

• Maritime Consulting (security, law, insurance)

Coastal & Marine Tourism

Sub-Sector

• Algoa Bay Yacht Club (ABYC)

• NMB Cruise Liner Committee

• Nelson Mandela Bay Tourism (NMBT)

• NMB Beach & Coastal Recreation

• Blue Flag Beaches & Marinas (WESSA)

• Boat Based Whale Watching Operators

• Dive Tour Operators

• NMB Tourist Guides Association (NMBTGA)

Fishing & Fish Processing Sub-Sector

• There are nearly 50 fishing industry firms in

Port Elizabeth.

• There does not appear to be a fishing

industry association to which all firms belong.

• At this stage there does not appear to be a

sub-sector to which the firms could fit and

hence occupy a seat on the NMB Maritime

Cluster Steering Committee.

• It is important that the fishing industry is

represented on the NMBMC.

Suggested Theme for 2014

The Contribution of Maritime Clusters to the

Aims and Objectives of Responsible Ocean

Governance: Challenges and Opportunities

for Nelson Mandela Bay

• 14th World Conference on Cities & Ports,

Durban 3 – 8 November 2014

• African Maritime Domain Conference (AMD

2014), Port Elizabeth 10 – 12 November

2014, Theme: African Maritime Domain:

Building Capacity and Developing Policy

• International Ocean Institute Southern Africa

(IOI-SA) Training Program in Ocean

Governance for Africa. Course dates: 13th

October to 7th November 2014, Cape Town.

• Launch of Algoa Bay Hope Spot, 10th – 11th

December 2014.

World famous and internationally respected

oceanographer, Dr Sylvia Earle, will dive in

Algoa Bay and place a plaque underwater to

proclaim Algoa Bay a global Hope Spot.

Dr Sylvia Earle in Port Elizabeth

The Algoa Bay Maritime Domain

• As concerned citizens (coastal and ocean

stakeholders) of the Algoa Bay Maritime

Domain we are indirectly held accountable for

the responsible governance of our space in

the Greater Indian Ocean Maritime Domain.

• This means that we are custodians of our

maritime space and this calls for excellent

stewardship.

• In this regard maritime clusters can make a

significant contribution to responsible ocean

governance in Africa.

Algoa Bay Maritime Domain

African Network of Maritime Clusters

• The dream is to establish local maritime clusters in

the maritime nations of Africa and then to link them

via a network of maritime clusters i.e. African

Network of Maritime Clusters (ANMC).

• Thereafter to link the ANMC with the European

Network of Maritime Clusters (ENMC).

• The Nelson Mandela Bay Maritime Cluster

(NMBMC) Model is feasible because it is a

voluntary association of coastal and ocean

stakeholders and therefore does not depend on

grant funding for survival.

NMBMC Work in Progress

The NMBMC Steering Committee meetings will focus on six

key objectives:

• Constructing the NMB Maritime Cluster (progress report).

• Constructing the maritime sector sub-sectors.

• Identifying leader firms that fit logically into the sub-sectors.

• Scheduling four coordinating meetings a year to deal with

issues and projects identified by the sub-sectors which

require strategic intervention and lobby support.

• Encouraging sub-sectors to meet regularly for round table

conversations.

• Arranging an Annual General Assembly (AGA) and Maritime

Summit of coastal and ocean stakeholders at which the

general public will be invited.

What is the Key to Cluster Success?

‘Passion and Teamwork – the twins for

successful Cluster Management’

Nothing is Impossible!

Peter Myles

• International Tourism Consultant

• Tournet Africa

• Port Elizabeth, South Africa

• Coastal & Marine Tourism Specialist

• Steering Committee Member: International Coastal & Marine

Tourism Society

• Chair: Nelson Mandela Bay Maritime Cluster

• UNWTO Collaborator

• Mobile: + 27 (0)82 556 1680

• Email: tournet@iafrica.com

• URL: www.tournetafrica.com