In late August, Denel announced that its Integrated Systems and Maritime company (Denel ISM) is to take over management of the South African Naval Dockyard at Simon’s Town. The previous managers, Armscor, will continue to act as the procurement agency, acting as liaison between the government and Denel ISM. Transfer of control and management will take place within six months of unspecified due diligence conditions being met.
The dockyard is in severe need of investment, which Denel will tackle in due course, according to the company. The Denel ISM business already has a strong foothold in the naval and maritime markets and a number of upcoming naval procurement opportunities make this an attractive move for the company.
The 2015 Defence Review identified a number of issues in the dockyard, ranging from lack of investment to labour and skills shortages, capability shortfalls and insufficient capacity, recommending the facility be managed under a revised business model. In a step towards implementing this recommendation, the government returned control of the dockyard to the navy in May this year.
The dockyard is in severe need of investment, which Denel will tackle in due course, according to the company. The Denel ISM business already has a strong foothold in the naval and maritime markets and a number of upcoming naval procurement opportunities make this an attractive move for the company.
The 2015 Defence Review identified a number of issues in the dockyard, ranging from lack of investment to labour and skills shortages, capability shortfalls and insufficient capacity, recommending the facility be managed under a revised business model. In a step towards implementing this recommendation, the government returned control of the dockyard to the navy in May this year.