The aerotropolis initiative in Ekurhuleni, in the east of Gauteng, aims to integrate and develop industrial and logistical capacity in the greater Gauteng region.

The regeneration of Germiston, Boksburg, Tembisa, Springs and Kempton Park is part of the provincial 30-year development master plan and aims to use industrial capacity in these areas as a foundation from which to develop broader industrial, services and logistical capacity in Gauteng, says Ekurhuleni metropolitan munici- pality economic development department head Caiphus Chauke.

The development of manufacturing capacity within the aerotropolis hub follows a two-pronged strategy. The manufacturing of high-value, low-weight products, including high-technology goods and electronics, as well as pharmaceutical products, will be pursued alongside the manufacturing of high-value, high-weight products, including steel, automotive, locomotive and bulk goods.

“South Africa, and Gauteng specifically, competes directly with other hubs in Africa, such as the hub in Nairobi, Kenya, and our aim is to use the presence of a special economic zone (SEZ) around the airport to incentivise companies to base their productive capacity here and then export the goods to other territories using airfreight,” Chauke explains

However, high-technology goods, electronics and pharmaceutical products require good access to skills, and an airport – in this case OR Tambo International Airport – facilitates the easy movement of skills.

Ekurhuleni aims to boost the supply of skills through the development of new technical vocational education and training colleges, such as the one being developed in Daveyton, in Ekurhuleni, as well as a small business incubation hub, which will enable transparent and quality-controlled supplier developments, along with access to resources and support for small businesses.

High-value, high-weight goods will not be sent using airfreight, but will leverage the presence of the airport, he notes.

“We aim to position the Airport City (the area within 15 km of the airport) as a services, hospitality and shopping hub, which will improve the movement and hosting of skilled people. The SEZ will also aim to incentivise companies to locate their regional headquarters within this Airport City,” Chauke notes.

“We will use the current manufacturing capacity in close proximity to the airport, specifically the industrial centres of Isando, Alrode, Apex, Jet Park and Boksburg, to support the reindustrialisation programme. Many of the companies in these areas are international companies or have strong links to international companies. The project is also pursuing the reinvigoration of these areas by trying to improve transport, access and supporting services,” says Chauke.

“These companies provide a robust foundation and access to equipment and services for other companies to establish operations in the aerotropolis hub. The project aims to consolidate the capacity and enable more manu- facturing activity and trading activity.”

The area within a 15 km radius of the airport will encompass the Airport City and will play host to a plethora of services and industry, including offices, headquarters, hotels and accommodation, as well as research and development labo- ratories, small-business incubation hubs and artisanal colleges.

Transport Corridors
The aerotropolis initiative will also result in densification along the main transport and logistics corridors, with the route from Tembisa to Natalspruit being one of the initial passenger and freight links. The intention is to make access to the airport and surrounding areas easy, says Chauke.

This densification simultaneously reflects the development of other corridors in Gauteng, as mentioned by Premier David Makhura in his State of the Province address (Sopa) last month.

“The construction of strategic infrastructure is being pursued, with a new inland port to be constructed in Vosloorus in 2016 and improved road links, to reduce the impact of the severely congested Gilloolly’s interchange, to be built between Ekurhuleni and roads leading south towards KwaZulu-Natal and south-west towards the Free State and beyond. These new links have been budgeted for by the South African National Roads Agency and are currently known as PW 15,” says Chauke.

The aerotropolis is part of the Presidential Strategic Infrastructure Projects (SIPs), specifi- cally SIP 2 and SIP 7. SIP 2 will improve links between Gauteng and eThekwini, in KwaZulu-Natal, and SIP 7 will improve the link from Gauteng to Maputo Port, in Mozambique, which will boost the ability of companies in the aerotropolis to export the goods by sea.

Further, there is an opportunity to produce 600 trains, comprising about 3 600 coaches, for the Passenger Rail Agency of South Africa, which will draw on the existing railway skills and facilities in Ekurhuleni, notably in Nigel and Springs, as well as the steel-producing companies in the broader Gauteng region, notes Chauke.

The broader aerotropolis area, within a 35 km radius of the airport, will include the five major eastern townships of Tembisa, KwaThema, Daveyton, Tsakane and Vosloorus, as well as four other smaller townships, which are being redeveloped and upgraded in parallel initiatives.

“The Tembisa bus rapid transit (BRT) system and the broader development and industrialisation of Tembisa are in support of the aerotropolis project and aim to ensure that people can move between the areas of work and residence.”

The BRT system will link Tembisa to Natalspruit and will also result in the development of bus lanes in Kempton Park and densification along the route.

“The aim of the developments is to ensure that there are sufficient skills, people and supporting infrastructure and services for companies in the areas along these corridors,” says Chauke.

Seeds of Growth
Chauke states that several projects are currently at an advanced stage, including global delivery giant DHL’s development of a new facility as part of the Albertina Sisulu corridor development, in Tembisa, and the R50-billion mixed-use development to be built by construction firm JT Ross next to the Serengeti estate.

“Ekurhuleni’s investment register states that R25-billion worth of projects have been registered for development within the region. Further, we have received an expression of interest from State-owned air traffic body Air Traffic & Navigation Services to build large headquarters and a training facility near the Simba factory, in Rhodesfield.”

Companies are, thus, starting to take advantage of the aerotropolis initiative, which is five years into its 30-year development.

Ekurhuleni has identified 21 strategic projects, from an initial list of 107, that it is pursuing to enable the development of the region into a manufacturing, services, logistics and transport hub.

“Given the opportunities presented by the uptake and interest in the initiative, Ekurhuleni might request that the SEZ be expanded and upgraded to an industrial development zone, which would enable us to offer good incentives to interested companies, including those currently located in the area, to establish new facilities in the Airport City.”

However, Chauke notes that the aerotropolis concept extends beyond Ekurhuleni. Broader provincial development will aim to leverage the smaller airports of Lanseria International Airport and Rand Airport, as well as Wonderboom Airport.

Meanwhile, Makhura also stated during his Sopa: “The eastern development corridor would be cemented around the economy of the Ekurhuleni metropolitan area as the hub of manufacturing, logistics and transport industries.”

“The aerotropolis concept, specifically the nexus of skills, industry, transport and logistics, will be expanded to include the greater Gauteng region focused around these airports.

“This aerotropolis concept is, therefore, a foundation for reinvigorating industry in the province and using existing infrastructure effectively in an interrelated and supporting manner to develop the province,” concludes Chauke.

Developers, investors and interested parties can access more information through the Ekurhuleni Investment Centre and can also request information from the aerotropolis project team by emailing aerotropolis@ekurhuleni.gov.za.