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
In 2012 the project had an overall pipeline of projects worth R140-billion.

Duration
Phased development of about 30 to 50 years.

Latest Developments
The Coega IDZ has attracted another R1.7-billion in investment for the Eastern Cape economy this year, with the CDC securing six more lease agreements.

Air Products, Famous Brands, AfriSam and APM Terminals, besides others, have each signed contracts valued at R300-million, R20-million, R634-million and R25-million respectively.

Last year, the CDC attracted R4.1-billion in new investments after securing seven commitments – GDF Suez, EAB, First Automotive Works (FAW), DCD Dorbyl, Tyre Energy Extraction, OSHO Cement and the Newco cheese factory.

The industrial zone boasted a total of about R8-billion in investment at different stages of implementation and permitting.

The value of the projects currently under construction is estimated at R350-million. This is expected to increase to R700-million by the second quarter.

Chinese car and truck manufacturer FAW has started construction works on its trucks assembly plant in Zone 2. The truck assembly facility is expected to produce 5 000 trucks a year, 70% of which are targeted for export.

Work on the foundations and columns and other activities, as well as civil works, have progressed well, with steel erection expected to start in mid-March. The construction project is expected to be complete and production started by February or March 2014.

The group is expected to inject R280-million into the first phase of the truck assembly section of the project.

Overall, FAW will invest R600-million in all the phases on 40 ha, through joint funding provided by FAW and the China–Africa Fund.

Meanwhile, construction on Famous Brands’ 2 400 m2 cold-storage and distribution centre within Zone 1 has also progressed well, with commissioning expected in June.

The group is also involved in Coega Cheese, a joint venture with Coega Dairy, which will result in the launch of a cheese factory to supply cheese to Famous Brands’ franchise stores in the Eastern Cape.

Construction is also taking place at Agni Steels and the Rehau extension in the Nelson Mandela Bay Logistics Park. Wind turbine parts manufacturer DCD and industrial gas supplier Air Products will also start construction in the new financial year.

Key Contracts and Suppliers
WBHO (main contractor); Uhambiso Consulting Engineers (principal agent); various national and local consulting engineers and architects (designs of municipal infrastructure for the various IDZ zones and top structures). Numerous civil and building contractors have been appointed for the construction of these projects: Matsim, a joint venture (JV) between Matrolab and Simlab, was appointed as a dedicated testing house for all CDC projects; AES (330 MW open-cycle gas-turbine – R5-billion); Ipsa (1 600 MW combined-cycle gas turbine); Dynamic Commodities (R24-million); Cerebos (high-purity sodium chloride plant – R85-million); Straits Chemicals (chlorine refinery and desalination plant – R1.1-billion); Ferrostaal (stainless steel precision strip mill – R1.1-billion); Southern Cross Precision Strip (stainless steel precision strip-processing facility – R1.1-billion); Biomass (biofuels); Afro-Asia Steel (steel billets plant – R75-million); PetroSA (proposed crude oil refinery); Rainbow Nation Renewable Fuels (soya bean biofuels project – R1.5-billion); General Motors South Africa, or GMSA (parts distribution centre in Zone 1 – R250-million); Studio de Arc (architecture); Mawethu Civils (platform); Siyalungisa Air Conditioning (air conditioning); Ivor Smith Electrical (all electrical work); Electrawinds (25 turbine wind farm – R1.2-billion); GDF Suez (R2.7-billion in energy sector); EAB (R270-million in renewable-energy sector); FAW (R600-million in automotive sector); DCD Dorbyl (R110-million in energy sector as a components manufacturer); Tyre Energy Extraction (R30-million in automotive sector); OSHO Cement (R380-million in construction sector); the Newco Cheese Factory (R30-million in the agro-processing sector) and DCD Wind Energy (R300-million in the wind energy sector).

On Budget and on Time?
Yes.

Contact Details for Project Information
CDC spokesperson Senzeni Ndebele, tel +27 41 403 0464, fax +27 41 403 0401, cell +27 83 661 1975 or email senzeni.ndebele@coega.co.za.
CDC business development manager Nkuli Mxenge-Mayende, tel +27 41 403 0400, fax +27 41 403 0401 or email nkuli.mxenge-mayende@coega.co.za.