By Diane Silcock
HAKE deep-sea trawling is a capital-intensive and financially high-risk industry that demands a highly qualified workforce. As a result, small operators often struggle to survive. The Basani Group, a vessel-owning company based in the Western Cape’s West Coast, has navigated rough waters in more ways than one over the past 20 years. However, through sheer determination it has found success in exporting their hake to Spain.
The small town of St Helena Bay on the West Coast—which is fast becoming a popular tourist attraction—is home to Basani. The group provides much needed employment in the Western Cape and is expanding its operations in St Helena Bay, thereby creating further employment.
Arthur Shipalana, Basani Group CEO discusses the company’s operations and the challenges it faces. “We took a huge financial risk as a small startup in acquiring a 35m trawl vessel to gain entry into the hake deep-sea trawling sector. We had to overcome significant challenges. However, through working closely with a Spanish partner, and local fishing companies ZWM Fishing and Visko Sea Products, today we own and operate two trawl vessels, three pelagic vessels, three squid vessels, a HACCP-certified hake factory in St Helena Bay, and we’re expanding to resuscitate our bait business with the pilchards’ gradual return to our coastline.”
Basani contributes greatly to local employment uplifting communities
Basani is revamping an existing building for conversion into a bait factory, the completion of which is imminent, and which will create employment for 60 additional workers (mainly women from Laingville in St Helena Bay). At their hake factory, the company already employs 40 workers from the community. Furthermore, across the 8 vessels that Basani operates, the sea-based crew employed amounts to around 150 people.
The squid business is located in the Eastern Cape where fishing takes place in Port Elizabeth (Gqeberha), Humansdorp and Jeffreys Bay, while hake is fished from Cape Town, and the small pelagics fished up the West Coast and occasionally along the South Coast.
Strong ties with Spanish company prove invaluable to Basani
Almost 90% of the fish caught by Basani is shipped to one customer in Spain. Shipalana says that the relationship which exists between Basani and their Spanish customer, is at the centre of their success and survival. The Basani brand has grown to become one of the most respected and sought-after fish brands in Spain.
At Basani’s hake factory, the fish is filleted, individually wrapped and packaged into 5kg portions for export to Spain. Initially, the hake was provided as H&G (head and gutted) but the filleted fish has proved more popular where it is mostly supplied to restaurants. The HACCP-certified operation was substantially revamped to fully comply with stringent European standards thereby enabling Basani to export to the EU.
Ongoing fishing quota challenge
Shipalana highlighted several ongoing challenges affecting fishing operations, including fluctuations in catches, and vessel availability. Notably, inadequate fishing allocations are a significant issue, as allocations are not sufficient to sustain operations beyond September. As a result, Basani is compelled to source fish from third-party quota holders at a substantial cost, which is dictated by demand and supply. Furthermore, low catch rates, potentially due to the sudden disappearance of fish, requires the crew to spend additional days at sea, resulting in higher costs for diesel, manpower, and food.
Establishment of clearing and forwarding and ships agency proves beneficial to Basani’s business
“Our hake trawl operation has contributed to the establishment of a clearing and forwarding ships agency business which trades as In X-Freight. It has outstanding credentials in its dealings with customs and port officials, and all efforts are being made to further grow this company,” says Shipalana.
“In our books, it’s a contribution to our operations in terms of job creation, not just being involved in catching, processing and marketing, but also in the support of our activities, such as logistics and the value chain of our fishing activities.”
Basani serves as testimony for its resilience in the capital-intensive industry, demonstrating the impact of determination and perseverance, by thriving in an industry that previously excluded small companies. Basani not only achieves success but also provides much needed jobs for the small community of St Helena Bay.
