Name and Location
Coega industrial development zone (IDZ), Eastern Cape, South Africa.

Client
Coega Development Corporation (CDC).

Project Description
The project is a multibillion-rand initiative, comprising an IDZ and a deep-water port at Port Elizabeth.

The initiative aims to position South Africa as a platform for global manufacturing and export through foreign and local investments.

Value
The IDZ has an overall pipeline of projects valued at about R140-billion.

Duration
Phased development of about 30 to 50 years.

Latest Developments
The Coega IDZ secured more than R1.8-billion for the 2013/14 financial year from ten clients active in the manufacturing, logistics, chemicals, renewable-energy and automotive industries.

The ten investors were SAMRT, from the automotive industry, which invested R400-million; automotive company Qtec Moulding, which invested R23-million; procurement and food business Digistics South Africa, which pledged R20-million; logistics firm ID Logistics, which invested R35-million; chemicals company Afrox South Africa, which invested R300-million; the No. 1 Corporation, which pledged R40-million; ITPASA, which invested R30-million; Ulba Tantalum Africa, which invested R200-million; as well as energy firms Powerway and Sungrow, which, through a joint venture, invested R127-million.

According to CDC business development executive manager Christopher Mashigo about 60% of these investments will either become operational or be commissioned in this calendar year.
Mashigo adds that the diversity of the investments has played into Coega’s strategy to attract a range of catalytic and turnkey investments that will enable future growth within the IDZ.

Supply chain integration is also already evident in the IDZ investments, he says, noting that agroprocessing has shown “a fantastic coming of age in the IDZ” and the integration with the port and back-of-port logistics is solidifying the port-IDZ-rural hinterland connection.

“Coega has carved a niche as a platform for the cold chain, linked particularly to perishables, while the port has the necessary infrastructure for their distribution with 1 682 refrigeration plug-in points – a convenience not found elsewhere in the country”, notes Mashigo.

Key Contracts and Suppliers
Operational investors:
Coega IDZ: Coega Concrete Product (construction); Dynamic Commodities (food processing); UTI Couriers (automotive); Cerebos (chemicals); EC Biomass (energy); PE Cold Storage (logistics); Digistics (agroprocessing); Accoustex (automotive); Electrawinds (energy); General Motors Pan African Distribution Centre (logistics); Innowind (renewable energy); Cape Concentrates (agroprocessing); Universal Wind (energy); Coega Dairy (agroprocessing); Kuehne and Nagel (automotive); AP Moeller South Africa (logistics) and Discovery Holdings (BPO).

Nelson Mandela Bay Logistics Park (NMBLP):
Faurecia (France); Rehau (Germany); Grupo Antolin (Spain); Benteler (Germany); Inergy (French); Hella (Germany); MSC (container depot); Inergy (manufacturing); Benteler (automotive).

Committed investors - not yet operational:
Agni Steel (metals); FAW (automotive); GDF Suez (energy); EAB (energy); Tyre Energy Extraction (energy); OSHO Cement (chemicals); Famous Brands (logistics); DCD Wind Towers (energy manufacturing); Afrisam (cement); Golden Era (packaging).

On Budget and on Time?

Yes.

Contact Details for Project Information
CDC head of marketing and communications Ayanda Vilakazi, tel +27 41 403 0400, fax +27 41 403 0401 or email Ayanda.Vilakazi@coega.co.za.