The Dube TradePort Corporation (DTPC) and Indian conglomerate Action Group on Tuesday signed a memorandum of understanding (MoU) for the development of a R2-billion industrial park.

Described by the partners as a “mega industrial integrated township”, the new development would be located on a 240 ha site adjacent to the Dube TradePort and would form part of the aerotropolis – or airport city – that is expected to surround Durban’s King Shaka International Airport.

Speaking at the signing of the MoU, at the conclusion of the Brics Business Forum, held on the sidelines of the fith yearly Brics Summit, DTPC CE Saxen van Coller said the MoU was an important milestone in the long-term plan to create an aerotropolis to the north of Durban.

“It is indicative not only of the business potential of this region, but also of the confidence investors are showing in Dube TradePort and its immediate environs. We believe this industrial integrated township will complement the current trade port and King Shaka International Airport, further boosting development and investment here.”

The industrial township was expected to attract an estimated R20-billion in foreign direct investment (FDI).

Although no starting date was given for the development, the partners said it would be completed in a number of phases. It would include new industrial space, commercial areas, a logistics hub comprising truck, bus and container depots, warehousing facilities, a weighbridge centre and a training institute.

Action Group MD Ajay Aggarwal said his company’s research had indicated that, with appropriate support, incentives and suitable infrastructure, an enabling environment could be created for the attraction of significant levels of FDI into South Africa.

The proposed new development would provide a gateway for international investors, manufacturers and industrialists wishing to grow their interests in South Africa, he added.

Founded in the early 1970s, Action Group is a diversified conglomerate with interests in electronics, chemicals, healthcare, steel and power and coal mining, besides others. The group is also regarded as a key player in development of industrial parks, special economic zones, retail and residential spaces, offices and hotels.