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, the 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
More than 26 companies active in the logistics, support services, oil and gas contracting and drilling, marine and rig building, fabrication and repair, as well as wells specialist industries have shown interest in relocating their businesses to the SBIDZ, with eight of these firms developing and finalising agreements with the zone operator, Trade and Industry Minister Dr Rob Davies has said.

Davies has outlined that there are no minimum requirements under the IDZ programme – or under the overarching Manufacturing Development Act – for companies or factories wishing to relocate to an IDZ licensed by the Department of Trade and Industry.

“The decision to accept an investor lies with the operating company, under the overall governance of its board of directors,” he has noted.

The SBIDZ Licensing Company has been awarded an operator permit to develop and manage the zone and is establishing itself as, or converting itself into, a separate Provincial Business Public Entity.

The SBIDZ, which is still in the early stages of development in terms of the required physical infrastructure, boasts the deepest natural port in the southern hemisphere and is a designated oil and gas, marine repair engineering and logistics services complex.

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.