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 CDC says it is confident that, with logistics, agroprocessing, chemical and energy sectors as its main growth drivers over the past 18 months, investment momentum within the Coega IDZ can generate R4.7-billion for the regional economy.

The CDC has reported completion of new infrastructure development projects with a value of R809-million from the start of the 2014 financial year to the end of first quarter 2015/2016 financial year.

This will include future long-term projects that will drive commercial and industrial property development in the IDZ, according to Tabiso Wana, head of the National Council of Provinces (NCOP), who was part of a touring delegation to the IDZ last week.

The tour, part of Provincial Week, was intended to give parliament, provincial legislatures and the South African Local Government Association (Salga), particularly the NCOP, an opportunity to monitor the state of infrastructure in the nine provinces.

The value of commercial and industrial assets currently under construction in the Coega IDZ is R3.6-billion on 169 170 m².

The Dedisa peaking power plant – valued at R3.5 billion – has a 150 000 m² footprint, while the remaining 19 170 m² are projects in the IDZ logistics and agroprocessing zones. These include the 4 038m² warehouse expansions of Digistics in the logistics zone, valued at R32-million; the 7 332 m² expansion of Coega Dairy, valued at R24-million; and the 6 000m² multiuser facility in the agroprocessing zone, valued at R86-million, which offers investors smaller units of between 350 m² and 1 500 m² under one roof, with communal infrastructure.

Future long-term projects at the Coega IDZ will include a new international cargo airport in the advanced manufacturing cluster Project Mthombo oil refinery, an aquaculture farm and a second gas power plant.

Other initiatives in the IDZ include maritime developments and a truck stop.

The automotive sector currently has 20 projects in the pipeline; agroprocessing has 25; the metals sector, as well as the chemicals and allied industries have 15 each; logistics and general manufacturing has 29; and the sectors of business process outsourcing, as well as aeronautics have five projects each.

The Coega IDZ has 31 investors – including Nelson Mandela Bay logistics park, 14 international companies and 17 home-grown companies – operational within its area. The organisation has R6.45-billion in private sector investment on the ground and R2.65-billion in completed top-structures for investors.  More than 17 360 jobs have been created in the IDZ since it began (6 175 operational and 11 192 construction jobs).

Key Contracts and Suppliers
Operational investors at the Coega IDZ:
Bosun Bricks, Dynamic Commodities, UTI Couriers, Cerebos, PE Cold Storage, Digistics, Electrawinds, General Motors Part and Accessories Distribution Centre, Cape Concentrates, Coega Dairy/Coega Cheese, APM Terminals, Discovery Holdings, Famous Brands, National Tooling Initiative, DCD Wind Towers and Agni Steels.

Nelson Mandela Bay Logistics Park:
Faurecia, Rehau, Grupo Antolin, Benteler, Inergy, Hella, MSC (SA) and QPlas.

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.