https://www.engineeringnews.co.za

Saldanha Bay industrial development zone project, South Africa

6th March 2015

  

Font size: - +

Name and Location
Saldanha Bay industrial development zone (SBIDZ) project, Western Cape, South Africa.

Client
The project will be managed and operated by SBIDZ Licensing Company, which was established and is funded by the Western Cape’s tourism, trade and investment promotion agency Wesgro.

Project Description
The SBIDZ will be an oil and gas and marine repair engineering and logistics services complex, serving the needs of the upstream exploration and production services companies operating in oilfields and gasfields in sub-Saharan Africa.

It will include logistics, repairs and maintenance, as well as fabrication activities.

The facility will offer a prime value-added service through a contiguous customs-free area.

The infrastructure needed to support operations will include water supply; wastewater systems; waste-disposal facilities; electricity; fencing; road access; bus stops; taxi ranks; petrol stations; a dedicated transshipment and rig-repair quay; dry-docking facilities (floating dock); quay equipment, such as cranes, tugs and forklifts; warehousing; fabrication yards; hard laydown areas; offices; retail, food and medical facilities; training centres and accommodation.

Value
The feasibility study has estimated that the private sector will need to invest between R5.12-billion and R14-billion in the IDZ.

Over the next 25 years, SBIDZ is expected to add 86% to the gross geographic product, create about 11 975 direct, indirect and induced jobs and attract R9.3-billion on foreign direct investment. It is also expected to generate an estimated R62-billion in foreign exchange.

Duration
The project is expected to take four years to complete.

Latest Developments
Land is being cleared and progress is being made at South Africa’s first IDZ to be developed exclusively for oil and gas services.

An agreement for the provision of engineering services has been signed.

“Prior to six months ago, nothing was really happening. A lot of work has now started on site,” SBIDZ executive: business development Laura Peinke told a Barloworld Power oil and gas seminar in Cape Town in February.

The land is now being cleared, while the Saldanha Wastewater Treatment Works is being upgraded. Other current projects include construction of the site camp building and designing the link road bridge. An environmental-impact assessment study is currently in its review phase.

The IDZ is considering clustering companies in areas that will service their requirements.

“For companies, it means the land closest to the port has been set aside for the industry that really needs it. That creates a cluster decevlopment   . . . companies working together in the value chain setting up next to each other,” Peinke says.
She has noted that existing export activities from the port, such as iron-ore and manganese, will continue, but the IDZ will not have to contend with container traffic. Investors have specifically requested a port that can cater to the burgeoning oil and gas sector in Africa.

“All seven other ports in South Africa can fit into the Saldanha port. It’s a sizeable port with a lot of opportunity for development,” Peinke stated.

Transnet, which owns the land, says it intends putting the entire project out to the private sector. It estimates this will cost R10-billion.

“The private sector feels this is high. But it means that Transnet will not restrict investment. It will not specify return on investment or concession timelines,” notes Peinke, adding that the private sector has shown great interest in investing in the IDZ.
Government has allocated R700-million for infrastructure, such as security and roads, to attract investment to the 330 ha port area.

Peinke says the general maintenance quay needs to be repaired, while a dedicated rig repair quay has to be built. Dredging studies for the quay, expected to be 480 m in length, are being finalised.

A quayside will be built alongside the Mossgas facility to service and repair vessels, as well as equipment coming from offshore.

Key Contracts and Suppliers
Demacon Market Studies, Bigen Africa and Plan Associates (prefeasibility study).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
Bigen Africa, tel +27 21 919 6976, fax +27 21 919 2508 or email capetown@bigenafrica.com.
Demacon Market Studies, Milinda Brink, tel +27 21 853 6895, fax +27 21 853 6895, cell +27 83 324 7363 or email milinda@demacon.co.za.
Saldanha Bay municipality, tel +27 22 701 7000, fax +27 22 715 1518 or email mun@saldanhabay.co.za.
Wesgro, tel +27 21 487 8600, fax +27 21 487 8700 or email info@wesgro.co.za.
Western Cape provincial government, tel +27 86 142 142 or email questions@capegateway.gov.za.

Edited by Creamer Media Reporter

Comments

Showroom

Weir Minerals Africa and Middle East
Weir Minerals Africa and Middle East

Weir Minerals Europe, Middle East and Africa is a global supplier of excellent minerals solutions, including pumps, valves, hydrocyclones,...

VISIT SHOWROOM 
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)
SAIMC (Society for Automation, Instrumentation, Mechatronics and Control)

Education: Consulting with member companies to obtain the optimal benefits from their B-BBEE spending, skills resources as well as B-BBEE points

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.17 0.227s - 159pq - 2rq
Subscribe Now