Is this the end for the SA Agulhas?
Seeking solutions to save the icebreaker
The fanfare associated with the deal to reimagine the SA Agulhas and extend its legacy as a training vessel for South African cadets has faded leaving the vessel sitting under arrest in the Port of Durban as the crew await confirmation of whether they will be paid, and the future of the iconic icebreaker seems uncertain. Editor Colleen Jacka, met up with the man that chased the deal to secure the vessel over several years this week to discuss how the events of the last few months have seen him forced to sell his own shares in the company that owns the SA Agulhas and walk away in a moment that seems to have humbled him considerably.
Captain Stefan Bülow sits across from me at an outside table at the Royal Cape Yacht Club. It’s his usual “office” when he is in South Africa and we’ve met here several times during his involvement with the SA Agulhas.
As usual he is flanked by Andrea Saidi who has been at his side throughout the epic ordeal to first secure the vessel, then oversee the refit and refurbishment and now as he officially announces his withdrawal of involvement in its future. This time he is also joined by Roland Shortt who joined J*S Maritime Partners in May after leaving SAMSA Special Projects where he oversaw the SA Agulhas during her tenure as the country’s dedicated training vessel under ownership of the South African Maritime Safety Authority (SAMSA).
There is a marked difference in the captain’s demeanour. The usually upbeat Bülow is more careful with his words. It is clear that he is disappointed by developments, including some which he believes have been deliberate attempts to impede his company’s ambitions within the South African maritime industry.
The handover of the vessel in January 2024 officially positioned him as the face of the ambitious plans to establish the aging icebreaker as the anchor vessel in an initiative to develop a Cape Town-based company offering research and tourist tours to Antarctica.
Everything seemed to be on track at the beginning of this year. The SA Agulhas had successfully completed a R100 million refurbishment project in the Port of Cape Town and was ready to deliver two planned scientific charters in the first half of 2025.
Small steps to disaster
After completing the charter voyages that saw the vessel return to the ice as well as undertake scientific research in the Indian Ocean, the SA Agulhas was due to undertake some minor work that required drydocking.
“That was the start of all our challenges,” says Shortt taking me through a series of events that ultimately led to the current situation.
Unable to secure a booking in the Port of Cape Town, she was diverted to Durban with plans to fit a transducer and to undertake work on the thruster. On the approach to Durban, however, she experienced damage to the auxiliary engine that impacted heavily on the scope of required work.
“The list of work just grew,” confirms Shortt who admits that this had a severe impact on the company’s cashflow. “The situation called for some creative thinking and some sacrifices to keep the project going,” he added explaining that every month alongside added to the financial strain associated with the vessel. “We needed to generate funding to guarantee the jobs of the crew and provide security,” he adds.
Describing a plan to trade loans against shares in the vessel-owning company, Bülow outlines how he identified a local company that showed an initial interest. But, without signed charter contracts in hand, the deal did not materialise as planned – exacerbating the financial situation further.
“The situation was a crippling one,” says Bülow who decided to liquidate his own shares in the company. By September this year the SA Agulhas was fully owned by HF Offshore Services Mexico and under management by the same company. “This means I no longer have any control in the project,” confirms Bülow.
Unfortunately, these changes could not help alleviate the financial strain as the owners were facing legal issues in Mexico. Earlier this year an arbitrational tribunal found that HF Offshore Services had engaged in fraudulent misrepresentations and they were ordered to pay US$10 million to Atlantic Oceanic. Facing further legal proceedings unrelated to the SA Agulhas in recent months, HF Offshore has been occupied with “rescuing their own business”, as Bülow describes it.
Although it is unclear as to why the sale of all shares to HF Offshore could have been seen as a solution to the SA Agulhas’ financial woes, the result has seen creditors approach the courts for the vessel’s arrest. This has left the crew onboard facing an uncertain future.
A commitment to local crewing
It’s an aspect of the situation that weighs heavily on Bülow who says he hopes to reward their loyalty if future plans to secure a charter vessel for planned trips in January next year materialise. Following a visit from an ITF inspector, he is assured however that the crew remain well-looked after despite the circumstances.
He confirms that he is in regular contact with many of the seafarers on board who, he says, remain grateful for the opportunity that their short stint on SA Agulhas afforded them.
“Although our time with the SA Agulhas has come to an end, we remain committed and will go out of our way to create partnerships for cadet training.”
Despite the recent developments, both Bülow and Shortt are eager to voice their commitment to driving the growth of the South African seafarer pool in international shipping through their connections with shipowners. “We are still absolutely committed to where we were. We will find a new way forward,” says Bülow. “Although our time with the SA Agulhas has come to an end, we remain committed and will go out of our way to create partnerships for cadet training,” he vowed.
“We are not going to walk away from our promise, and we are looking at other ways to achieve our goals,” he added.
He confirms that J*S Maritime is pursuing the opportunity to offer the charter that the SA Agulhas was poised to undertake in January by securing another fit-for-purpose vessel that he has already identified. He hopes to officially announce the deal during December and sees this as an opportunity to continue to deliver on the company’s mandate.
“Even with a separate project and platform, we still intend to use South African crew,” says Shortt affirming Bülow’s vision. They believe in the opportunity to promote South Africa as a source of seafarers.
Describing local seafarers as having a “talent for improvisation to find solutions to challenges”, Bülow says that South Africans are still not sufficiently recognised in the international market. He wants to see this change and hopes to be able to drive the initiative that gives the South African seafarer an advantage.
A focus on the future
I ask him how he feels sitting here now less than two years after the lavish celebration on board the SA Agulhas where he publicly signed and committed to a long-term vision for the vessel; the development of local seafarers and ultimately acting as a partner to uplift the country’s reputation within the niche maritime scientific research sector.
“There is a lot of emotion involved, but I must finally accept that I cannot get this over the finish line.”
“It is horrible,” he admits. “There is a lot of emotion involved, but I must finally accept that I cannot get this over the finish line.”
Despite this admission, Bülow says that this is not a time to retreat. “I have a responsibility to build up and not give up; and to emerge from the situation with the same vision,” he says confirming that he aims to draw on his extensive network in the international maritime industry.
“When you create something, you don’t give up. The secret is to stand up one more time than you fall down,” he says rather philosophically.
Admitting to being humbled by the experience, he says that he has not endured “real failure” before, but points to his decision not to walk away from the situation as proof of his intentions. “I did not shy away from this, I am here to speak to people face-to-face,” he tells me. “I can still look at myself in the mirror,” he adds.
He is still hopeful that a buyer will be found for the SA Agulhas before she ends up being put under the hammer by the court. To this end, he confirms that he has already been in talks with a potential buyer in Canada.
Ultimately, however, despite his public connection to the vessel, it is legally not his problem. He is already focused on plans for 2026 that he says will attract investment and provide the opportunities for the expansion he had sought to build on.
“I still believe in the country. I still see a lot of positive prospects here. I came with good intentions, and I am hoping to see these developed for the good of the South African maritime cluster,” he concludes.
Walking away, I am left with the burning question; is this the end for the SA Agulhas? It’s this question and several others that remain unanswered.
PHOTO: Before being purchased in January 2024, the SA Agulhas functioned as South Africa’s dedicated training vessels under the management of the South African Maritime Safety Authority. (© Maritime Review Africa)
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