52 minute read
Partnerships show the way for Special Economic Zones
Collaboration between the private sector and government and its agencies is paying off in eight provinces.
The goal of industrialising the South African economy is a major objective of the Special Economic Zone programme. These zones (which include Industrial Parks) are intended as catalysts for economic growth in established sectors and in stimulating new industries.
Collaboration between national government (through the Department of Trade, Industry and Competition, the dtic, which oversees the programme), provincial departments and municipalities, economic development agencies and private companies in key sectors is a vital component in making Special Economic Zones work.
Policy goals As defined by the dtic, Special Economic Zones (SEZs) are geographically designated areas set aside for specifically-targeted economic activities, supported through special arrangements (laws, tax rebates) and systems that are often different from those that apply in the rest of the country.
South Africa’s Industrial Policy Action Plan (IPAP) identifies SEZs as growth engines towards government’s strategic objectives of industrialisation, regional development and employment creation.
The purpose of the SEZ programme is to: expand the industrialisation focus to cover diverse regional development needs; provide a clear, predictable and systemic planning framework for the development of a wider array of SEZs to support industrial policy objectives; clarify and strengthen governance arrangements, expand the range and quality of support measure beyond provision of infrastructure; and provide a framework for a predictable financing framework to enable long-term planning.
Partnerships In some parts of the country, an anchor tenant is central to the concept of the approved or proposed SEZ.
In East London, the presence of MercedesBenz South Africa makes the clustering of automotive suppliers in the East London IDZ both logical and cost-effective. The Northern Cape’s proposed Namakwa SEZ is predicated on the huge operations of the existing Gamsberg Zinc Mine (pictured) and the proposed smelter to be built by international investor Vedanta Zinc International.
In eastern Limpopo, the Mining Supplier Park run by mining company Glencore is forming the core around which the Fetakgomo-Tubatse SEZ is being created. Local and district municipalities are investing in basic infrastructure, while the provincial government has allocated staff from its Department for Economic Development, Environment and Tourism to drive the process. The same provincial department has created a stateowned-company to run the Musina-Makhado SEZ in the northern part of the province.
Credit: Kevin Wright/Vedanta Zinc International
The country’s biggest diamond miner, De Beers, is partnering with the local tertiary college, the Venda TVET College, by offering engineering graduates a chance to gain practical experience at its Musina operations. The decision by the college to locate its engineering facility within the SEZ is another example of collaboration.
Part of the value proposition of the Upington Industrial Park is based on the plans of Airports Company South Africa to develop the local airport as a base for storage of aircraft and for maintenance and repairs. The fact that major automotive manufacturers test their cars in the Northern Cape on a regular basis is something that the Northern Cape Economic Development Agency (NCEDA) is promoting as an opportunity for investors.
Mining is at the heart of another planned Northern Cape project, the Kathu IDZ. Big companies such as Sishen Iron Ore Company, Kumba, Assmang and South32 have expressed support and the project has been submitted by the NCEDA to Infrastructure South Africa to be registered as a catalytic project.
The OR Tambo International SEZ (Gauteng IDZ) leverages the advantages of being located at a major transport hub for access to African and international markets. The SEZ’s location within the Ekurhuleni Metropolitan Municipality means that there are also many opportunities for tie-ups with a huge variety of manufacturing enterprises – Ekurhuleni has the country’s densest concentration of manufacturing operations. An interesting example of inter-government partnership came about in December 2020 when the City of Cape Town transferred general industrial-zoned properties worth R56.5-million to the Atlantis Special Economic Zone Company (SOC) Ltd. In return, the City became a shareholder in the company.
An earlier cooperative agreement between the City of Cape Town and the Western Cape Provincial Government had set out the terms for the transaction once the Atlantis SEZ Company was registered.
The signing of this land agreement meant the ASEZ Company assumed responsibility for the usage, administration and control of the property. The total area of proclaimed land is 118 hectares, of which 25ha has already been developed by five investors. The difficulty was that the other 94ha of land belonged to the City of Cape Town and was subject to various conditions about the rate at which it could be rented out or sold. By incorporating the City of Cape Town as a shareholder, the land was unlocked and the SEZ was in a position to expand.
A few kilometres north of Atlantis, the Saldanha Bay Industrial Development Zone (SBIDZ) has to work hand-in-hand with the Saldanha Bay Municipality (SBM) and the Transnet National Port Authority (TNPA) as it defines its role and expands its offering. As an example of the level of cooperation envisaged for SEZ development, the R3.5-billion first phase of the expansion of the Port of Saldanha is described in an SBIDZ press release as being understood as “a long-term partnership between the government, its institutions and the private sector”.
The press release further explains how the process fits into the national context:
“This transaction model has proven the best way to fund long-term assets in a competitive environment. The SBIDZ has begun the formal process of submitting this project to the Investment and Infrastructure Office in the Office of the Presidency, supported by the National Treasury, for inclusion in the Sustainable Infrastructure Development Symposium (SIDS).” ■
Geographical focus
SEZs are located in areas with particular resources and historical sectoral strengths. The relevant SEZ is geared to serve, support and encourage development of those resources and sectors. There are currently 15 Special Economic Zones in eight provinces. Some of the zones are in the process of being officially proclaimed as SEZs.
Province: Limpopo Name: Musina-Makhado SEZ SEZ status: Approved Focus: Light industrial, agroprocessing, metallurgical, mineral beneficiation, solar power
Province: Limpopo Name: Fetakgomo-Tubatse SEZ SEZ status: Pending Focus: Green energy, hydrogen, mining inputs, mineral beneficiation
Province: Gauteng Name: Vaal SEZ SEZ status: Pending Focus: Logistics, agriculture and agro-processing, tourism, alternate energy (solar, battery storage, hydrogen)
Province: Gauteng Name: OR Tambo International Airport (Gauteng IDZ) SEZ status: Approved Focus: Beneficiation of precious metals and minerals sector, light, high-margin, export-oriented manufacturing
Province: Gauteng Name: Tshwane Automotive SEZ SEZ status: Approved Focus: Automotive, automotive components, manufacturing, export manufacturing Province: Mpumalanga Name: Nkomazi SEZ SEZ Status: Approved Focus: Strategic location on Maputo Corridor is major selling point; logistics, agro-processing, manufacturing, nutraceuticals, fertiliser products
Province: Free State Name: Maluti-A-Phofung SEZ SEZ status: Approved Focus: Located on N3 highway; logistics, manufacturing, agro-processing
Province: KwaZulu-Natal Name: Richards Bay IDZ SEZ status: Approved Focus: Export-oriented manufacturing, storage and manufacture of minerals to boost beneficiation, techno-parks
Province: KwaZulu-Natal Name: Dube TradePort SEZ status: Approved Focus: Industry, cargo-handling and logistics, agro-processing, telecommunications
Province: Eastern Cape Name: East London IDZ SEZ status: Approved Focus: Automotive, agroprocessing, aqua-culture Province: Eastern Cape Name: Coega SEZ SEZ status: Approved Focus: Automotive, agroprocessing, aquaculture, energy, metals, logistics and business process services (BPO)
Province: Western Cape Name: Atlantis SEZ SEZ status: Approved Focus: Green Tech, including automotive components and components for wind turbines, solar panels and green building materials
Province: Western Cape Name: Saldanha Bay IDZ SEZ status: Approved Focus: Oil, gas and marine repair, engineering and logistics services complex, fabrication
Province: Northern Cape Name: Namakwa SEZ SEZ status: Pending Focus: Downstream activities from proposed zinc smelter, mineral beneficiation, construction, green energy, petrochemicals, transport
Province: Northern Cape Name: Upington IDZ SEZ status: Pending Focus: Renewable energy, aviation, automotive, agro-processing
Promoting the industrialisation of South Africa
The Musina-Makhado Special Economic Zone is ideally placed to bolster national plans, says CEO Lehlogonolo Masoga, while carrying out an inspiring vision for the region’s economy and people.
Lehlogonolo Masoga
Please explain the rationale behind Special Economic Zones. Special Economic Zones (SEZs) are growth engines towards government’s strategic objectives of industrialisation, regional development, employment creation, the improvement of existing infrastructure, skills development and technology transfer by attracting foreign direct investment and strengthening the export of value-added commodities. SEZs are geographically-designated areas set aside for targeted economic and sector-focused activities, supported through special arrangements (that may include laws) and systems that are often different from those that apply in the rest of the country. This is a strategic phenomenon which has transformed economies across the globe by developing major industrial development zones with ripple effects such as the development of new towns and smart cities.
How do SEZs fit into national plans such as the Industrial Policy Action Plan (IPAP)? IPAP recognises the role of industrial parks and Special Economic Zones as strategic vehicles for industrial activities which promote beneficiation and manufacturing. The support which is provided to SEZs in terms of infrastructure, regulatory framework and incentive schemes provides a conducive environment to bolster industrialisation. The IPAP classifies Special Economic Zones into key categories which include Industrial Development Zones, Free Ports, Free Trade Zones and Sector Development Zones.
BIOGRAPHY
Lehlogonolo Masoga has more than 20 years of experience as an administrator and public servant, most recently as Deputy Speaker of the Limpopo Provincial Legislature and MEC for Roads and Transport. He served as the spokesperson for the former LEDET MEC and Minister of Public Administration, the late Mr Collins Chabane. Lehlogonolo holds three Master’s degrees: Governance and Public Leadership (Wits), Development Studies (Limpopo) and an MSc in Leadership and Change (Leeds Beckett University, UK). He has B-Tech HRM from UNISA and a professional diploma in Humanitarian Assistance from the Liverpool School of Tropical Medicine (UK) and is currently a registered PhD candidate in Public Administration. How does the MMSEZ fit into regional and provincial planning initiatives? The priorities of the Limpopo Development Plan 2020-2025 and the Medium-Term Strategic Framework include the following: • Transformation and modernisation of the provincial economy • Integrated and sustainable socio-economic infrastructure development • Spatial transformation for integrated socio-economic development • Economic transformation and job creation through regional integration
These policy priorities reinforce the business case of the MusinaMakhado Special Economic Zone in line with the vision of the provincial
administration. A successful MMSEZ will result in South Africa’s active participation and leadership in the African Continental Free Trade Area (AfCFTA) and the industrialisation strategy of SADC. The Limpopo Development Plan articulates an inspirational vision about the future as follows: The Limpopo Province of the future will create an environment that is mutually beneficial, where rural living and smart cities coexist in harmony, adopting the future without losing touch with our heritage. The new Limpopo Province will: • Develop new smart green cities with integrated transport systems. • Embrace renewable energy to reduce the reliance on fossil fuels. • Develop and implement new 4IR education systems that can inspire and prepare the youth and adults for the future. • Evolve businesses to embrace the 4IR and be globally competitive. • Evolve the provincial economy from being mostly dependent on the primary sectors, to a diverse and inclusive economy, with growth potential to reduce unemployment significantly. • Have happy, prosperous and connected communities. • Have new economic infrastructure that can enable Limpopo to leap into the future, such as drone airports to assist in delivering packages to rural areas.
What underpins the geographic spread of SEZs? During the early 2000s, government adopted the Industrial Development Zones, which were mainly concentrated in the historical economic hubs and coastal regions. The SEZ model recognised a need to harness the country’s economic competitive advantages across the value chains. Our economy boasts various competitive advantages which span across various provinces. This new approach has created an unprecedented opportunity for rural provinces such as Limpopo to participate in this magnificent programme.
What measures are undertaken to encourage investments in SEZs? The success of a Special Economic Zone is dependent on its capacity to attract and retain both domestic and foreign direct investment. The secret to unlocking investment lies in the readiness of the infrastructure, packaging of a solid business case, project preparation, marketing and investment promotion strategies.
What collaborations is the MMSEZ engaged in? When the MMSEZ was officially designated in 2017, among the things that the provincial government had to start preparing for was skills development among the youth who will require new and advanced skills to work in the project. An idea to establish the Vhembe TVET College Musina Satellite Campus was mooted and with the support of Venetia Mine, a start was made. When the college management were looking for a new piece of land to build a proper campus around Musina, an opportunity was identified to relocate the campus into the North Site of the MMSEZ. The beauty of the MMSEZ-VTVET partnership lies in the fusing of skills development and industrial platforms within the same zone. We are pleased with the support provided to this pioneering initiative by both the provincial and national government. This initiative will also form part of the foundation and a seed for the development of a new smart city in Musina.
What is the MMSEZ strategy on SMMEs? Small, micro and medium-sized enterprises are the lifeblood of any economy to facilitate economic empowerment and job creation. Economic transformation through the empowerment of SMMEs and historicallydisadvantaged individuals has undergone several policy setbacks that threatened the country’s path for economic transformation. Among the first steps undertaken by the MMSEZ SOC to level the playing field for the empowerment of local enterprise and entrepreneurs was the development of an Enterprise Development Strategy, through which local enterprises and entrepreneurs will be prioritised in terms of opportunities presented by the SEZ. They will also receive the necessary support for them to reach their full potential and become the integral part of the MMSEZ ecosystem. ■
Both private and public institutions have committed funds and a mining company is engaged in a partnership.
The Musina-Makhado SEZ (MMSEZ) is intended as a catalyst for massive future investment in the region and support of industrialisation and economic growth.
The MMSEZ has already attracted significant investment from public and private investors and a strong pipeline of further investment is envisaged.
Government Major investments in infrastructure are being provided by the Provincial Government of Limpopo through the Limpopo Department of Economic Development, Environment and Tourism (LEDET). Of R600-billion pledged to develop infrastructure for the North Site of the MMSEZ over the mediumterm expenditure framework (MTEF), some R39million has been spent to date on engineering work and the 2022/23 financial year will see a further allocation of R200-million for items such as security, water and electricity infrastructure.
The entity which has been created to run the SEZ, the MMSEZ state-owned-company (MMSEZ SOC), is responsible for coordinating investments and guiding the process towards the realisation and functioning of the Special Economic Zone.
Partnerships The local Technical Vocational and Educational and Training college, Vhembe TVET College, is investing in establishing a campus in Musina to complement the development of the SEZ.
A satellite campus was originally established but through a partnership between the MMSEZ SOC and Vhembe TVET the engineering campus will relocate to a site within the SEZ site. De Beers will support the graduates with on-thejob training.
The SEZ will thus be supporting the skills profile of the district and combining skills development and industrial development. Additional investments in student accommodation and retail outlets to support the student population will further enhance the diverse offering within the SEZ.
Having a tertiary college located within the SEZ will form an important first building block towards creating a Smart City in Musina.
Private sector The investment value of the 1 000MW Solar Power Plan to be constructed in the SEZ is valued by the provincial government at US$1.5-billion. The project is being undertaken by Huadian Hong Kong Ltd, the company that has signed a Memorandum of Understanding (MoU) with LEDET.
Eskom has started with the inception and scoping report for bulk electricity infrastructure of the MMSEZ, which will connect the power plant to the grid. ■
FURTHER INVESTMENT OPPORTUNITIES
Real estate Retail | Hotels Private hospital OUTSIDE THE ZONE
General manufacturing Agro-processing | Warehousing | Industrial property Petroleum depot
Renewable energy Office park | Hotel | Student accommodation Real estate
INSIDE THE ZONE
ICT Musina dam Cross-border trade
MMSEZ
SPECIAL FEATURE
A world of game-changing opportunities A world of game-changing opportunities
What is Musina-Makhado Special Economic Zone (MMSEZ)? The Musina-Makhado SEZ is a flagship initiative of the Limpopo Provincial Government implemented through the Musina-Makhado SEZ SOC in partnership with a Chinese Operator, Shenzhen Hoi Mor Resources Holding Company Ltd. The MMSEZ as an economic development tool aims to promote national economic growth and exports by using support measures in order to attract targeted foreign and domestic investments, research and development (R&D) and technology transfer. Where is the MMSEZ located? The Musina-Makhado SEZ is located in the vicinity of the Beit • Bridge Border Post which is one of the busiest ports of entry in SA and an undisputable gateway to the South African Development Community (SADC) countries. The MMSEZ has the potential to become an inland intermodal terminal, facilitated by its anchor along the North-South Corridor, and directly connecting to the country’s major ports through both N1 road and the JohannesburgMusina railway line, for the trans-shipment of sea cargo and manufactured goods to inland destinations and the SADC markets.
What is the Musina-Makhado Economic Zone? The Musina-Makhado SEZ is a flagship initiative of the Limpopo Provincial Government implemented through the Musina-Makhado SEZ SOC in partnership with a Chinese MUSINA-MAKHADO SEZ CLUSTERS • Metallurgy (Minerals Beneficiation) • Energy Generation • Manufacturing Operator, Shenzhen Hoi Mor Resources Holding Company • Agro-Processing Ltd. The MMSEZ as an economic development tool aims to • Logistics promote national economic growth and exports by using support measures in order to attract targeted foreign and WHAT ARE THE INCENTIVES FOR domestic investments, research and development. INVESTING IN THE MMSEZ? • Preferential corporate tax • Building allowance and tax relief Investment opportunities • Employment tax incentive inside the zones: • Customs-controlled area tax relief • Industrial infrastructure • Rental space discounts • Corporate offices • Readily available infrastructure • Logistics services • Sufficient land for greenfield projects • Petroleum supply • Access to agricultural & mineral resources • Industrial chemicals • Easy access to the up-north (SADC) market • Accessible logistics support for the movement of goods
What is the Musina-Makhado Special Economic Zone? MUSINA-MAKHADO SEZ CLUSTERS The Musina-Makhado SEZ is a flagship initiative of the The MMSEZ is a flagship initiative of the Limpopo • Metallurgy (mineral beneficiation) Limpopo Provincial Government implemented through Limpopo Provincial Government implemented through Provincial Government implemented through the MMSEZ • Energy generation the Musina-Makhado SEZ MMSEZ SOC in partnership SOC, in partnership with a Chinese Operator, Shenzhen • Manufacturing with a Chinese Operator, Shenzhen Hoi Mor Resources Hoi Mor Resources Holding Company Ltd. • Agro-processing Holding Company Ltd. The MMSEZ as an economic Holding Company Ltd. The MMSEZ as an economic The MMSEZ is an economic tool that aims to promote • Logistics development tool aims to promote national economic national economic growth and exports by using support growth and exports by using support measures in order measures in order to attract targeted foreign and domestic MMSEZ INVESTMENT INCENTIVES to attract targeted foreign and domestic investments, investments, research and development. • Preferential corporate tax • Preferential corporate tax research and development. • Building allowance and tax relief Building allowance and tax relief Building allowance and tax relief • Employment tax incentive Employment tax incentive Investment opportunities Investment • Customs-controlled area tax relief • Customs-controlled area tax relief Customs-controlled area tax relief inside the zone: inside the zone: opportunities outside • Rental space discounts • Rental space discounts • Industrial infrastructure the zones: the zone: • • Readily available infrastructure • Readily available infrastructure Readily available infrastructure • Corporate offices • Real estate • • Sufficient land for greenfield projects Sufficient land for greenfield projects Sufficient land for greenfield projects • Logistics services • Retail and hotels • Access to agricultural and mineral resources • Access to agricultural and mineral resources Access to agricultural and mineral resources • Petroleum supply • Schools and airport • Easy access to the up-north (SADC) market Easy access to the up-north (SADC) market Easy access to the up-north (SADC) market • Industrial chemicals • Health • Accessible logistics support for the movement of goods• • Accessible logistics support for the movement of goods • Entertainment • Musina Dam
What is the Musina-Makhado Special Economic Zone? The MMSEZ is a flagship initiative of the Limpopo Provincial Government. The North Site is wholly owned and operated • Metallurgy (mineral beneficiation) by the MMSEZ SOC. The South Site is operated by the MMSEZ • Energy generation SOC in partnership with a Chinese operator, Shenzhen Hoi Mor • Manufacturing Resources Holding Company Ltd. • Agro-processing • Logistics • • Real estate Sufficient land for greenfield projects • Retail and hotels • Schools and airport Easy access to the up-north (SADC) market • Health • Entertainment • Musina Dam
POTENTIAL INVESTMENT OPPORTUNITIES IN AND OUTSIDE THE MMSEZ
ENERGY & METALLURGY
Power Plant Iron and Steel Plant
Ferromanganese Plant Ferrochrome Plant Chrome Plant Lime Plant
Stainless Steel Plant
AGRO-PROCESSING
Food Processing Facility Fresh Produce Market Canning Facility Cotton Beneficiation Timber Processing
LOGISTICS
Logistics Services Warehousing Distribution Container Yard Vehicle Distribution Cold Storage Bonded Warehouses
INFRASTRUCTURE
Construction Services Engineering Services Re al Estate Development Retail Property Hospitality Facilities Bu ilding Materials Manufacturing and Supply
MANUFACTURING
Light Industries Basic Assembly Automotive Assembly Electromechanical Operations Component Manufacturing Fertilisers Agro-chemicals Petro-chemicals ICT Solutions Furniture Manufacturing Packaging Services
CONTACTS MUSINA-MAKHADO SEZ SOC 29 Market Street, Polokwane,
Limpopo Province (RSA) 19
MS TSHAMAANO MAKUYA
MR RICHARD ZITHA
Contact details Project ExecutiveMusina Makhado SEZ SOC Address: 93 Biccard Street, Tel: +27(0) 15 295 5120 Polokwane, Limpopo Cell: +27 (0)71 391 8188 Province, RSA Richard.Zitha@lieda.co.za
Ms Tshamaano Makuya, Musina-Makhado SEZ SOC Stakeholder Relations Manager Cell: +27 067 411 9192 +27 67 411 9192 Email: T.Makuya@mmsez.co.za Mr Richard Zitha, Project Executive Mr Richard Zitha, Executive Cell: +27 071 391 8188 +27 71 391 8188 Investment Promotion Email: R.Zitha@mmsez.co.zaCell: +27 71 391 8188 Email: R.Zitha@mmsez.co.za LIMPOPO BUSINESS 2020/21
MUSINA MAKHADO SMART CITY
A Smart City programme is envisaged for northern Limpopo Province, catalysed by the development of the multi-sector Musina-Makhado Special Economic Zone.
Anew Smart City is taking shape in Limpopo Province. It is catalysed by the economic stimulus of the Musina- Makhado Special Economic Zone (MMSEZ). The new Smart City will integrate the towns of Musina and Makhado to become the pre-eminent trade and The advantage of the MMSEZ is that it is part of a national economic programme, located within the National Transformation Corridor that links Gauteng with its dynamic economy to the Beitbridge Border Post, one of the busiest ports in Africa. The goal of the Smart City is transformational. People’s needs and industrial centre of Southern Africa.
The new Smart City will reignite the rich civilisational heritage of the Great Mapungubwe, Thulamela and Zimbabwe Kingdoms which at their height in 1000AD produced artifacts in gold and traded _____________ __ _ _ globally as far as Arabia, India and A leading innovative, China. This region will once again rise and become a modernised industrial sustainable and inclusive and global trade hub, building on its heritage and embracing the high-tech Africa gateway city ___ __ ___ __ _ _____ technology revolution.
The geographic location of the Smart City in the northern part of South Africa bordering Zimbabwe and connecting into the rest of Africa gives it a critical comparative advantage, together with the natural endowments within the surrounds of Musina and Makhado which include high-value agricultural land, mineral resources and functional spatial relationships. If harnessed fully these will help to create a competitive regional economy for South Africa and the continent. aspirations are at the centre of planning. The foundations are proper sanitation and waste management, 24-hour electricity and water supply, efficient mobility and public transport with a network of wellconnected roads and access to reliable and high-speed telecommunications. The circular and green economy based on reuse, recycle, share, low/zero-carbon footprint meets with the concept of the Smart City. The MMSEZ, working together with all three spheres of government and stakeholders, aims to develop the designated MMSEZ as a catalytic driver for a Smart City which is envisioned to be: A leading innovative, sustainable and inclusive high-tech Africa gateway city, driven by residents and visionary investment within a prosperous rural-urban integrated region and operating as a highly connected – freight/warehousing/ logistics/transport/retail/ manufacturing – industrial hub supporting the SEZ within a superefficient Gauteng-Limpopo-Zimbabwe economic corridor.
Building the future together
Message from Dr Mofasi Lekota, MMSEZ Board Chairperson
Antonvilla
The core triangle of Beitbridge, Musina CBD and Antonvilla (Northern SEZ) will catalyse a region This core triangle will catalyse a region of smartness and development with upgrades of smartness and development with upgrades to roads and connectivity that will create the to roads and connectivity that will make the Musina-Makhado corridorMusina-Makhado corridor.
MMSEZ SMART CITY 6
As a long-term developmental approach, this will result in a transformed, competitive and spatially integrated regional economy and this will lead to the upliftment and well-being of people living in Vhembe, its neighbouring districts and the Province of Limpopo at large. MMSEZ SMART PRECINCTThe development of the Smart City starts with the Northern SEZ Site of the MMSEZ as a smart precinct, together with the upgrading of the Beitbridge border post and the town of Musina The Northern Site of the MMSEZ in Antonvilla will be the first to become an integrated core of the new Smart City. This core smart precinct in the smart city that will improve the economy triangle will catalyse a region of smartness and development with and create jobs. upgrades to roads and connectivity that will make the Musina- • A green industrial estate where one can live, work, play. • Investments into light manufacturing, retail, trade, freight and logistics warehousing, and Makhado corridor the fastest-developing area in Limpopo, South agro-processing will be sought. Africa and Southern Africa. • Innovation and incubation of new businesses to work on latest technology in electronics and other industries will be promoted. THE MODEL • The buildings and management of the precinct will use solar energy and conversion of waste to energy to ensure sustainability. The Smart City Model will be implemented incrementally: • First step: integrate the Northern Site of the MMSEZ, the
Beitbridge border and the Musina town to form the Smart City. • Second step: upgrade the N1 between Makhado and Beitbridge as part of the Smart City Corridor. • Third step: promote strategic developments along the N1
Musina-Makhado Smart City corridor. • Fourth step: renew and regenerate the towns of Musina and
Makhado. • Fifth step: implement the corridors, ensuring connectivity to villages and promote agriculture and tourism, activating the
Smart Region. • Parallel steps: development of roads for connectivity; work 16 MMSEZ SMART CITY on telecommunication coverage; training of communities to use technology in partnership with the institutions of higher learning and through schools; building awareness on zero waste and low-carbon living. The work on the metallurgy complex at the Southern SEZ site will also be undertaken in parallel.
A vibrant partnership with the University of Venda in co-creating the Smart City was launched on 16 September 2021, when the model was unveiled. The next step will be to develop the supply of skills needed for a Smart City and the ongoing operation of the SEZ. The Board of Directors of Musina-Makhado Special Economic Zone (MMSEZ) recognises and appreciates the immensity of the challenges and attractive opportunities that come with the MMSEZ. We understand the mutual and interdependent relationship between a successful SEZ and our envisaged Smart City. We also acknowledge that the long-term nature of this project and its intergenerational characteristics require long-range planning and short-term execution. It requires human and capital resources that are committed in the long term and resilient enough to withstand the turbulences inherent in these types of projects. A vision of the emergence of a Smart City in the land between Musina and Makhado energises the directors and staff of the MMSEZ company to perform to the best of their abilities from day to day and from year to year. It is this vision that shines a light on our path to build a platform from which the next generation will derive optimal economic benefits. We continue the relentless pursuit of this vision, while keeping our promise to do all we can to maintain an environment that our children and their children will happily inherit from us. What will emerge between these two northern-most towns of Limpopo province is a Smart City that will offer endless opportunities for all our people. It is a Smart City that will offer business, job, skill development and entertainment opportunities for the people of the Vhembe region, Limpopo Province and the nation. This will be a Smart City we will all be proud of. Key: 1 Beitbridge border 2 Musina CBD 3 Antonvilla (Northern SEZ) The Northern Site of the MMSEZ in Antonvilla will be the first smart precinct in the Smart City that will improve the economy and create jobs. A green industrial estate where one can live, work, play. Investments into light manufacturing, retail, trade, freight and logistics, warehousing and agro-processing will be sought. Innovation and incubation of new businesses to work on latest technology in electronics and other industries will be promoted. The buildings and management of the precinct will use solar energy and conversion of waste to energy to ensure sustainability.
Contact Details:
Mr Livhuwani Muligwe: MMSEZ Smart City Model Project Manager Tel: +27 66 174 0798 | 93 Biccard Street, Polokwane, Limpopo Province, RSA
The Vaal Special Economic Zone (Vaal SEZ) is intended as a catalytic project to boost economic growth and create jobs in the Vaal region.
Lesedi
The Sedibeng District, host of the proposed Vaal SEZ, comprises three local municipalities and is strategically located both in terms of highways and railways and in relation to three economically-powerful metropolitan municipalities, Johannesburg, Ekurhuleni and Tshwane.
Aconsiderable amount of planning has already gone into the concept which ties in to development goals and frameworks at local, regional and national level.
The area The three local municipalities which make up the Sedibeng District Municipality are predominantly rural. Midvaal is the most rural of the three local municipalities, with urban development concentrated along routes R59 and R82 in the north-western parts of the municipal area. Midvaal has strong regional linkages to major economic cores.
Lesedi is also primarily rural, with the major urban concentration located in Heidelberg/Ratanda nodes, along the N3 freeway at its intersection with Provincial Route R42, east of the Suikerbosrand Nature Reserve. Heidelberg is the seat of the municipality. Emfuleni in the west is home to the towns synonymous with steel, Vanderbijlpark and Vereeniging and the Sasol Petrochemical complex to the south of Sedibeng in the Free State Province.
Vision By 2030, an industrialised, globally competitive, export-driven regional economy.
Mission Our Mission is our tagline: To Reignite the Birthplace of Industrialisation in South Africa.
Key outcomes • The Vaal SEZ will leverage existing assets and infrastructure • It will pursue opportunities in the green economy, decarbonisation, hydrogen and net-zero emission sectors • To become the go-to investment destination • To be a multi-tier (multiple sites, multiple sectors), anchor SEZ hub, spatially dispersed within the region • To achieve a seamless, integrated, socially-cohesive society, with sustained economic growth and quality jobs for the people of the Vaal region.
Process The Vaal SEZ Master Plan was completed at the end of June 2022. Site analyses of secured sites has been completed. A pipeline of firm investment commitments is being established. Township establishment processes will be initiated for land parcels to service current highpriority investors.
The SEZ designation application will be submitted by the end of October 2022.
INVESTOR VALUE PROPOSITION Enabling framework Strong government support, robust legal and regulatory framework. Strong commercial and significant economic and social returns, including incentives and rebates.
Locational benefit South Africa’s economic hub, sound logistics networks and infrastructure.
Infrastructure services One-stop shop services and the Vaal SEZ’s Shared Services and investor access to serviced land and funding options.
Management capability Independent management body, cooperation between dedicated bodies, local, regional and national government.
MIDVAAL Land has been secured adjacent to the Klipriver Business Park (500ha) with access to the R59 via the R550. Also, 100ha secured next to SA Steel Mill off the Pierneef Road offramp, as well as 9ha in DeDeur, zoned for agricultural purposes and earmarked for agro-procressing. Council has approved the land classification.
EMFULENI The Emfuleni Local Municipality Council has resolved to make two adjoining land parcels available, totalling 697ha. The site is bordered by the N1 highway and is close to the ArcelorMittal factory. This site is also earmarked for the development of a Hydrogen Valley Concept.
Logistics Sedibeng District Municipality is traversed by extensive national and provincial major railway and road mobility infrastructure: Route N1: the major national north/south freeway linking Musina at the northern border of South Africa to Cape Town in the south Route N3: the major transport link between Gauteng Province and eThekwini, passes through Sedibeng District’s Lesedi Municipality Route N17: the main link between Johannesburg, Secunda, eSwatini and the Richards Bay harbour Route R103: the old Johannesburg-Durban road runs parallel to Route N3
LESEDI Two land parcels earmarked by the municipality for SEZ development (one of 20ha and another of 149ha). Access to the N3 to allow good connections to Johannesburg and KwaZuluNatal. Three-way collaboration between the Municipality, MTP Aviation Solutions and the Vaal SEZ to widen the SEZ area to include parts of the Heidelberg Aerodrome.
Multi-site Special Economic Zone will be game-changer
Vaal SEZ aims to build on region’s strengths to create sustainable businesses
The Vaal region is a historic cluster of capital-intensive and heavilyindustrialised manufacturing which was underpinned by a globally-competitive mining and iron and steel sector.
These experienced a marked decline from the 1990s, but plans are underway to revive the region, using the tried and tested method of creating a Special Economic Zone (SEZ) as a hub for business activity. Where the Vaal SEZ is unique is that various satellite hubs will work out from a central hub like spokes in a wheel, thus exploiting the existing strengths of particular sites and spreading economic benefits across the area more widely.
The Vaal SEZ is to be created within the Sedibeng District Municipality, which already has several attractive assets for would-be investors:
• An existing manufacturing base (eg, Heineken,
ArcelorMittal, SASOL, SA Steel Mills) and a history of industrial activity • Agricultural land available for development • affordable industrial and commercial land earmarked for development • Vaal River, tourism • Vaal Dam, tourism • Existing university and graduates • Young population with huge potential • Skilled artisans • Excellent rail and road connections • Proximity to three of South Africa’s largest metropolitan markets, namely Johannesburg,
Ekurhuleni and Tshwane
Regenerate the Vaal area and support economic activity The Vaal region presents a compellingly unique value proposition of a thriving regional value-adding industrial economy which effectively leverages its comparative locational attributes and resource endowments. In addition to spearheading the revival of the existing industrial manufacturing base, it will also facilitate the creation of new growth and differentiation opportunities which include low-carbon manufacturing, energy, agriculture and agro-processing.
Despite the ongoing challenges that have faced Vaal businesses over the years, it has been found that existing businesses have continued to support communities and explore ways to be more sustainable. Significant investment continues to be made by existing businesses and this bodes well for how the region is viewed by its residents – a vote for the future.
Investment as transformation There is a strong case for investors to join and benefit from a green energy-fuelled reindustrialisation of the Vaal region. This will transform this industrial basin into the country’s preeminent hub for low-carbon manufacturing and renewable energy production.
The Vaal SEZ is connected to other national and provincial initiatives in Gauteng. This regional development aims to create linkages and the integration of the host province’s growth strategies with the local economic development strategies of the host municipalities to national economic initiatives.
Targeted investment strategy • High-impact investments into the food, agriculture and agro-industries value chain • Investment in gateway logistics (air, road, rail, river) to exploit the locational advantages of the Sedibeng District • Investment in the Blue Economy and the
Tourism Sector using the advantages of the
Vaal River • Building a Smart City along the Vaal River to enable SEZ development and to drive urban regeneration • Building strong local linkages between township/rural economies with the value chains that the Vaal SEZ will develop and strengthen
Cannabis • The cannabis economy is projected to grow quickly. • Available land • Land is available for future development. • Land is affordable
Low-carbon economy clusters • Solar and battery storage • The circular economy • Biomass • Carbon capture • The hydrogen economy: aim to be South Africa’s preeminent hub for the hydrogen economy
Agro-processing
• Food, beverages, agro-processing and agribusiness • Agro-processing – plant products and value chains • Agro-processing – livestock and value chains
Logistics • Warehousing and storage – packaging • Expansion of gateway logistics and infrastructure • Logistics – exploiting locational advantages
Skills development and training • Formalised relationship with tertiary educational institutions • Development with a purpose • Pool of skilled resources for industry • Training for future skills
Light manufacturing and infrastructure • Maintenance of existing assets • Creating new and sustainable infrastructure to support targeted industrial activities • The Vaal Dam is a significant asset
Invest in the Free State
Excellent location, resources and incentives combine to make South Africa’s most central province an attractive investment proposition for businesses of all sorts.
Situated in the heart of South Africa and sharing borders with Lesotho and six other provinces, the Free State’s location provides easy access to the main ports of Durban, East London and Gqeberha and is therefore ideal for logistics, manufacturing and agro-processing operations.
The main economic sectors are agriculture, mining and manufacturing. The concentration of large chemical companies in the town of Sasolburg is testimony to the influence of global chemicals and energy company Sasol.
Companies relocating not only enjoy the opportunity to source inputs at competitive prices, but also to benefit from domestic, regional and international markets for their products and services.
There are industrial parks and a Special Economic Zone (SEZ) that are supported by the Department of Trade, Industry and Competition. Industrial parks are situated in Maluti-A-Phofung, Botshabelo and Thaba Nchu.
The Free State’s strengths for inward investment are boosted by: • openness to business, trade and investment • abundance of natural resources • low factory rentals • Africa’s leading telecommunications network • incentive packages uniquely developed for
Special Economic Zones and industrial parks • Free State Development Corporation (FDC) support services for priority sectors such as agro-processing and manufacturing • a large labour pool • diverse cultures • competitive land and building costs.
Select investment opportunities include: agriculture and agro-processing; tourism and property development; medical and pharmaceutical production and distribution; manufacturing; renewable and clean energy and medical tourism.
FREE STATE DEVELOPMENT CORPORATION The Free State Development Corporation (FDC) contributes to the Free State’s economic development through four service delivery pillars: SMME/co-operative funding and support; export-related services; property management; investor services.
FDC services to investors and business include: • Project appraisal and packaging. • Promotion and facilitation of investment projects and facilitation of access to finance. • Providing access to business and government networks and assistance with business retention and expansion. • Information on statutory requirements, investment advice and assistance with investment incentive applications and business permits. • • Assisting with the development of local and international markets and facilitating joint ventures/equity partnerships through identification of local partners.
FDC property management The FDC ovesees 253 commercial properties and 290 industrial sites, which it uses to: • Facilitate commercial and industrial activity • Assist new investors looking for suitable premises • Facilitate SMME development, particularly in rural areas
The substantial property portfolio makes FDC one of the biggest property owners in the province with industrial, residential and commercial properties in excess of 900 000m² situated in the Mangaung Metro and Thabo Mafutsanyana District.
FDC industrial properties are located in • Thaba Nchu • Botshabelo • Industriqwa – Harrismith • Phuthadithjaba
Free State Province Free State Province
Free State Province Center yourself in the heart of South AfricaFree State Province Center yourself in the heart of South Africa
The Botshabelo Industrial Park is situated approximately 60km from the economic hub on the eastern side of the Mangaung Metro.
Maluti-A-Phofung Special Economic Zone The main objective of the MAP SEZ is to attract foreign and direct investment and to stimulate the local economy as well as to create meaningful work opportunities for people of the Free State as a whole and in particular the Maluti-A-Phofung region.
The MAP SEZ is nestled on 1 038ha of land which is divided into four precincts that include the crossdocking and container-terminal precincts. The MAP SEZ is a multi-sector processing, manufacturing, engineering, logistics services and transport complex, serving the needs of the upstream value-adding, beneficiation, processing and production service companies operating across sectors and geographic areas in Southern Africa.
A number of incentives are available to ensure MAP SEZ’s growth, revenue generation and international competitiveness. These incentives include: • 15% corporate tax instead of 28% corporate tax • Building allowance tax • Employment incentive tax
Tourism investment From the impressive rock formations of the Golden Gate Highlands National Park to the country’s biggest dam, Gariep Dam, with cultural, historical and adventure experiences in between, the Free State caters to every tourist’s taste.
There are also multiple investment opportunities. The Free State Gambling, Liquor and Tourism Authority (FSGLTA) is doubling up on efforts to attract international tourists and to create new markets domestically through programmes such as “Travelling Differently”.
Tourism infrastructure is being enhanced and new skills taught to prospective employees in the sector. Bloemfontein’s newest investment is the R95-million Premier Splendid Inn.
All of the major hotel brands have a presence in the Free State. Protea Hotels has properties in Bloemfontein, Harrismith and the popular resort town of Clarens while Sun International, the Tsogo Group and City Lodge are well represented. ■
Contact details for investors:
Free State Development Corporation Tel: +27 51 4000 800 Emails: wecare@fdc.co.za | invest@fdc.co.za Website: www.fdc.co.za
Center yourself in the heart of South AfricaCenter yourself in the heart of South Africa
MESSAGE FOR INVESTORS
MEC for Economic, Small Business Development, Tourism and Environmental Affairs, the Honourable MP Mohale, has been supportive of various publications designed to attract investment to the province. In addition, he notes: While investment is an essential ingredient to economic growth, it should be pointed out that at the centre of the Free State government’s economic development strategy, as well as the Value Chains Economic Transformation Approach, is human capital formation and development through universities and colleges, and various institutions pursuing innovation and offering proof-ofconcept services, to name a few. The Free State is poised to become a laboratory for excellence in education outcomes, research and innovation, particularly in the fields of health, agriculture, agro-processing, manufacturing, water management, ICT, pharmaceuticals and rural development. Domestic and potential investors from around the world are welcome to contact the DESTEA Head of Department at: HoD_office@destea.gov.za.
Limitless renewable-energy resources, a new port, a Special Economic Zone and green-hydrogen investments make the province the ideal destination for forward-thinkers.
The Northern Cape is now – and will in the future – be the best global investment destination for investors in mining, agriculture or energy. These are the primary sectors. However, there is the added benefit for the province and for investors of renewable energy being scaled up across the province. This puts the Northern Cape in a good position to have an aggressive industrialisation agenda.
To this end, the 2022/23 financial year began with a positive start as the Northern Cape recorded the lowest unemployment rates in the country together with an improved GDP figure of R130-billion, up from R98-billion in 2019. The key drivers for the Northern Cape’s sterling performance were investments in the mining and energy sectors. These were made possible through good governance and investment facilitation on top of a good resource base.
The Northern Cape is a key contributor towards South Africa’s Just Energy Transition (JET). The Northern Cape Provincial Government, in line with the Green Hydrogen Strategy that was launched in November 2021 at COP26 in Glasgow, has initiated pre-feasibility studies that are championed by its strategic partner and anchor investor, Sasol.
Since the introduction of the national Renewable Energy Independent Power Producer Procurement Programme (REIPPPP), the Northern Cape has attracted a disproportionate percentage of solar and wind projects, worth billions of rands to the local and national economy.
The advent of the green-hydrogen economy has given the Northern Cape the opportunity to hold a key position in this new field as a contributor to country’s green economy. This is enabled by the natural endowments that are available in the province.
The South African response and offer to the global village is well articulated via the South African Green Hydrogen Roadmap that is based on the following tangible references that provide a first-class competitive advantage: • A well-developed strategy and an existing regulatory and implementation structure that has been developed since 2007 • Having the world’s largest grey-hydrogen producer in the world, Sasol, as the lead investor • The REIPPPP that has been in existence for more than 10 years, generating more than 5GW of electricity
The Northern Cape has exceptional renewable energy resources. As the biggest South African province by land mass, the province is sparsely populated, has little alternate use for the land and has an uncomplicated topography. Collectively, this amounts to an exceedingly supportive environment for renewable-energy generation and green-hydrogen development.
The renewable energy capacity of the Northern Cape is more than sufficient for what South Africa
would require based on its projections, but farreaching consideration is being given as to how the renewable capacity is developed and scaled up.
BOEGOEBAAI PORT The significant support the Boegoebaai project is receiving from both the public and private sectors is highlighting its promise.
Ultimately, an extensive value chain for investment exists, ranging from desalination and electrolyser production, the renewable energy resource required, grid capacity, auxiliary services and ultimately the possibly of manufacturing opportunities for the industry and value addition to local mineral resources.
Part of the feasibility study, Sasol’s final master plan report, will be made public and this will entail more elaborate detail about the value chain. A green-hydrogen-specific Special Economic Zone (SEZ) is envisaged to host the extensive value chain that stems from the production of green hydrogen. The site will be 30 000ha in extent. This will be the world’s leading investment destination for green hydrogen within a green SEZ.
In addition, the existing mining, agriculture, transport and energy sectors need to be transitioned and incorporated into this JET-driven Northern Cape Green Hydrogen Strategy. For the future, plans must be made for heavy-hauling trucks in the mines and on roads and for green-hydrogen fuelling stations and the like. The array of investment potential within this green economy does not conclude here, though. A range of other demands must be provided for, including extensive developments, infrastructure, logistics and the demand for human capital. Investors are urged to opt in and to secure for themselves a slot in this prime, once-in-alifetime investment opportunity.
CONTACTS
Riaan Warie Director: Trade & Investment Promotion Northern Cape Department of Economic Development and Tourism Tel: +27 (0)87 310 7683 Fax: +27 (0)53 831 3668 Cell: +27 (0)79 877 2828 Email: RWarie@ncpg.gov.za/ warieriaan@gmail.com
Hendrik Louw Acting CEO NCEDA Tel: +27 (0)53 802 1638 Cell:+27 (0)60 997 7222 Email: hlouw@nceda.co.za
Newlyn’s First-in-World Bulk Minerals Storage Solution
Proposed back-of-port manganese terminal in Ngqura Newlyn is a home-grown company that has invested and continues to invest in long term promises near-zero dust emissions and high efficiency capital intensive transformational infrastructure in South Africa. We believe in the economic potential of the country and don’t have any investments outside South Africa. Our future is inextricably linked to and fully aligned with the success of SA Incorporated. We proactively contribute to the success of our country by investing for the long term, securing leading global supply chain technology, facilitating technology and skills transfer to South Africa, to smart spaces. transformational infrastructure raise the standards across the entire bulk materials logistics supply chain ecosystem. In so doing, we have demonstrated that we contribute to meaningful socio-economic development in all the regions in which Newlyn operates.
ESG and Supply Chain Optimisation
• Near zero dust emissions • Rapid unloading of trains (6,500tph) • High speed shiploading of up to 10,000 tph • Vessel turnaround sub 20 hours • No product degradation • Catalyst for jobs and economic development • Common User Infrastructure: market access for emerging miners • Significant financial benefits to miners, Transnet and the fiscus
CONSTRUCTION & COMMISSIONING – 2 YEARS
Contact us:
031 313 6500
Firdhose Coovadia
The future of sustainable, operationally-efficient firdhosec@newlyngroup.com mineral export logistics Sagie Chetty sagiec@newlyngroup.com
https://newlyngroup.com
As part of its vision to deliver continuous innovation in offering sustainable and efficient logistics solutions to its clients, Newlyn has, together with global OEMs Eurosilo and Bruks Siwertell, developed proprietary technology for what will become the world’s first near-zero dust emissions mineral ore back-of-port export terminal with superior operating efficiencies.
Open stockpiling of manganese in the Port of Port Elizabeth and in back-of-port facilities in Markman and Ngqura has created significant issues. Apart from the serious public health and environmental concerns, the enormous impact of these increased volumes on the region’s already burdened infrastructure, roads, traffic, tourism and ecosystems is immeasurable. It has, for example, resulted in expensive and inefficient watering to reduce dust storms over the popular Kings Beach, while also stymieing attempts to create a touristfriendly waterfront around the small boats harbour within the port.
Transnet intends moving the manganese bulk export terminal to the Port of Ngqura within the Coega SEZ, 20km to the north of the city of Gqeberha. Newlyn’s proposed back-of-port solution for manganese in Coega will perfectly dovetail with Transnet’s proposed plans. It will serve to accelerate the relocation of manganese exports from Gqeberha to Ngqura and is designed to augment Transnet’s proposed manganese export terminal in Ngqura to ensure a sustainable solution is offered to the manganese miners.
Closed design The Newlyn design for the back-of-port storage and handling of mineral ore is entirely closed to the environment, hence near-zero dust emissions and associated product losses.
The efficient design involves rapid unloading of the train and movement of manganese via piped conveyor to specialised silos which are equipped with mechanical systems for soft handling of ore. Thereafter, ore is accurately discharged from the silos via pipe conveyors to the ship-loaders at a loading rate of up to 10 000 tons per hour. As a result, ship-loading can be achieved in less than a day compared to the current 5-6 days. This significantly reduces demurrage for miners, improves train turnaround times and most importantly will serve to debottleneck the existing heavy-haul rail line from the Northern Cape. Incremental rail capacity created by the system can be made available to emerging miners currently unable to secure sufficient rail export allocations for manganese.
The Newlyn design is first-in-the-world for export of mineral ore and has a footprint of one third of conventional back-of-port storage.
Back of Port Manganese Terminal – Ngqura The future of sustainable operationally efficient export logistics
Meeting national objectives Simulation models have demonstrated that Newlyn’s project can coexist with Transnet’s planned manganese export terminal, to ensure that export logistics infrastructure can meet the forecasted export potential from South African miners.
The project will address several objectives in the national strategic and economic interest of South Africa including: • Cargo migration from road to rail; • Technology and skills transfer of the best available global technology; • Private sector participation in infrastructure development; • Enabling market access for emerging manganese miners; • Stimulating regional and provincial socio-economic development; and
Bayhead multi-modal rail facility is the largest of its kind in Africa
• Delivering environmentally sustainable solutions to communities.
The project has received overwhelming support from manganese miners and environmental NGOs. Newlyn is planning a similar project in Saldanha to address environmental challenges and efficiencies associated with iron ore and manganese back-ofport operations there. ■
About the Newlyn Group
The Newlyn Group was established in 1996 to engage in opportunities for black participation within the port logistics sector, a sector which previously excluded people of colour.
Initially, Newlyn targeted potentially prime industrial properties and created value by rejuvenating ageing infrastructure.
Today, Newlyn is a leading private developer of land close to or within port precincts along strategic high-value/volume trade corridors. Newlyn adopts an innovative design approach transforming these land parcels into highlyefficient logistics facilities that offer bespoke solutions to leading multinational and national clients. Newlyn’s tried and trusted design approach and in-house construction capabilities and equipment ensures a bespoke solution that enhances our clients’ businesses. Newlyn’s growth is driven by a highly credible team of experts with over 150 years of cumulative experience at the highest level. Newlyn is a proudly South African, homegrown Level One BBBEE entity committed to investing in South Africa for the long term. The Newlyn Group’s current developed portfolio includes 26 properties in three provinces with a GLA of c. 1 300 000 square metres and a land bank of c. 1 700 000 square metres. Newlyn’s portfolio includes some of the most sophisticated storage facilities on the continent with landmark developments including Africa’s largest multimodal rail terminal in Bayhead, Durban, a specialised sulphur import facility in Richards Bay and a stateof-the-art chemicals storage facility in Durban.
Newlyn’s macro vision is to make South African businesses more competitive by reducing the cost of logistics through the development of more efficient and environmentally sustainable logistics infrastructure solutions. ■
Contact details:
Tel: +27 31 313 6500 Firdhose Coovadia: Chief Value Officer | firdhosec@newlyngroup.com Sagie Chetty: Group Engineer | sagiec@newlyngroup.com Website: https://newlyngroup.com
Newlyn is a home-grown company that has invested and continues to invest in long term Going beyond thecapital intensive transformational infrastructure in South Africa. We believe in the economic potential of the country and don’t have any investments outside South Africa. Our future is inextricably linked to and fully aligned with the success of SA Incorporated. We proactively contribute to the success of our country by investing for the long term, securing leading global supply chain technology, facilitating technology and skills transfer to South Africa, to smart spaces. transformational infrastructure conventional to achieve the exceptional raise the standards across the entire bulk materials logistics supply chain ecosystem. In so doing, we have demonstrated that we contribute to meaningful socio-economic development in all the regions in which Newlyn operates.
CEO and founder Raj Balmakhun explains how the Newlyn Group’s bespoke and innovative solutions are aligned with the growth and development of South Africa What is the mission of Newlyn? We are proudly South African and Afri-optimists. While our country has many challenges and complexities, this spawns innovative solutions. The cost of logistics significantly impacts the competitiveness of an economy. Our mission is to make South African businesses more competitive by developing innovative logistics storage infrastructure focused on greater efficiencies anchored in sustainable design, construction and operations. We fully subscribe to the spirit of Ubuntu, “I am because you are”. This guides our value system and we believe in making a difference socially as well as economically. When was the company established? Newlyn CEO and founder, The Newlyn Group was established in 1996 to engage in opportunities Raj Balmakhun for black participation within the Port Logistics sector, a sector which previously precluded people of colour. To what do you ascribe the growth the company has enjoyed? Dogged perseverance, speed of decision making and implementation as well putting clients first. Whilst we have faced many challenges, including the formidable disadvantage of starting from a zero capital base, we remain committed to the logistics investment theme in and around ports and major trade corridors and focus on delivering a topquality logistics solution to our clients. How do you define “bespoke storage and logistical solutions”? One of my core principles is “you cannot do the conventional and expect the exceptional”. Our design approach addresses the logistical issues common to traditional warehousing including inter-modal optionality, truck reticulation and optimum stacking densities. These specifications differ from client to client depending on the type of product being handled in the facility, how product is received or special regulatory requirements. Examples are our sulphur storage facility in Richards Bay and the Ashgate Chemical Storage facility in Durban.
ESG and Supply Chain Optimisation
• Near zero dust emissions • Rapid unloading of trains (6,500tph) • High speed shiploading of up to 10,000 tph • Vessel turnaround sub 20 hours • No product degradation • Catalyst for jobs and economic development • Common User Infrastructure: market access for emerging miners • Significant financial benefits to miners, Transnet and the fiscus
CONSTRUCTION & COMMISSIONING – 2 YEARS
Contact us: Back of Port Manganese 031 313 6500 Terminal – Ngqura Firdhose Coovadia firdhosec@newlyngroup.com The future of sustainable Sagie Chetty operationally efficient export logistics sagiec@newlyngroup.com
https://newlyngroup.com
BIOGRAPHY
Raj began his career practicing law, but he has always been an entrepreneur at heart. This led him to founding the Newlyn Group in 1996. Under his stewardship Newlyn has become a leading private developer of transformational logistics storage infrastructure and the group is synonymous with innovation, speed of execution and world-class quality. Raj is the visionary and dealmaker for the Group. He is a firm advocate of social entrepreneurship, which aims to uplift the communities within which Newlyn operates. How do you see your company’s mission as linked to the success of South Africa Inc? South Africa has a development problem. We desperately need
investment in infrastructure, but these are long gestation investments that will underpin a sustainable economy for decades to come. We believe we cannot leave it to government – we as business have to be part of the solution. Our projects speak to capacity building, technology and skills transfer, community engagement and upliftment, innovation and long-term investment. We are ready to collaborate with government, with communities and with our clients to deliver transformational infrastructure projects that address national objectives including the migration of cargo from road to rail, environmental sustainability, job creation and fixed capital investment. The work we do needs to be judged by its criticality to the economy – for example our PX development in Durban or the planned Coega back-of-port manganese development unlock value in the mining sector, a major contributor to the South African economy.
What is Newlyn doing in terms of running sustainable operations? The Newlyn Group is committed to “leaving the planet in better health than we found it”. We will deliver our projects in a sustainable manner, by systematically reducing our environmental impact and improving the quality of life for communities. Newlyn projects are designed to reduce water consumption and carbon footprint. We deploy translucent sheeting in warehouse design to maximise natural light, we use LED lighting in all new builds and we deploy sisalation to enhance cooling.
Nowhere is our commitment to sustainability more evident than our joint development, with two global OEMs, of near-zero dust emission mineral storage and handling solutions for manganese and iron ore. The first such project is currently under development in the Coega Special Economic Zone. The global engineering firm undertaking the EPCM work on our behalf has hailed the solution as a global game changer in sustainable, operationally-efficient bulk mineral storage.
In addition, Newlyn has invested in its own internationally experienced energy team which has developed proprietary process technology that results in a lower cost of electricity generation coupled with significantly lower CO2 and NOx emissions.
Is Newlyn exploring power generation projects? We are leveraging our substantial rooftop space to generate solar power where we act as the promoter and developer. For example, our roof at the PX project in Durban is capable of generating 30MW of solar power, sufficient to meet our clients’ needs but also ensure the entire Durban port can been powered by green energy. In addition, we have an EIA-approved land parcel for a gas to power project which we intend to develop as part of a consortium led by a Tier 1 power block developer.
What is the Boegoeibaai project? The proposed Boegoebaai Port with dedicated new rail connectivity to the mines of the Northern Cape is an exciting project which speaks to government’s objectives to migrate road to rail, optimise cargo distribution, reduce dependency on single ports and facilitate access to export markets for emerging miners. The development of this port is also key to unlocking South Africa’s immense green hydrogen potential and further paves the way for in-country mineral beneficiation. It will also result in great job creation and billions of dollars of fixed-capital investment.
Newlyn has teamed up with an international consortium with global credentials in port and rail infrastructure development, to pre-qualify as a potential developer of the Boegoebaai Project. This collaboration is an example of another one of our core principles – harnessing the power of collective effort and collective intellect. ■
Silo-based; manganese back-of-port facility planned for Port of Ngqura
