About Me

My photo
MILITARY TECHNOLOGY (MILTECH) is the world's leading international tri-service defence monthly magazine in the English language. MILITARY TECHNOLOGY is "Required Reading for Defence Professionals". Follow us on Twitter: MILTECH1

05 September 2016

Denel to Manage South African Navy Dockyard

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.