CONSTRUCTION BOOM AT COEGA: Construction underway at Coega, with seven investor buildings under construction simultaneously.


The Coega Development Corporation is seeing a construction ascend with seven companies busy with constructions well underway within the Coega Development Corporation’s Industrial Development Zone (CDC).

Construction taking place at the IDZ provides job opportunities for residents living in the Nelson Mandela Bay, about 1800 people are benefitting from the construction-related jobs. 

“Construction expansion of existing businesses is sign of current investors’ business growth and an improving economic climate,” said CDC head of marketing and communication, Dr Ayanda Vilakazi.

Companies currently under construction include leading gas suppliers Air Product (R300m investment) and Afrox (R300m); electricity generator Dedisa Peaking Power Plant (R2.2-billion); while cold chain logistics facilitators Vector Logistics investment is valued at (R140-million); Digistics expansion (R30-million);  ID Logistics (R30-million) and UTi Distribution (R30-million).

The slab for the Afrox office building is presently being casted and it aims to have construction completed during the fourth quarter of this year (2014). Twelve people will be employed once operational.

More than a third of the work is completed on Dedisa Peaking Power Plant.  On completion the plant will consist of two open-cycle gas turbines able to produce 335MW of electricity, which is roughly half of Nelson Mandela Bay’s power requirement. The establishment of the plant will provide value added assistance to a number of growing industries established in the IDZ, estimated to be over 1000 permanent employment opportunities to be created as a result of the supply of electricity to those industries.

Air Products is firmly on schedule to commission the plant and have gas flowing to customers in the final quarter of 2014. Nine operational jobs and 42 constructions jobs are being created.

Vector Logistics started construction in May this year and have created 120 construction jobs and 90 people employed once operational.

Digistics Digital Logistics has outgrown its current 2 285m² facility in Zone 1 of the Coega IDZ – a space it has occupied for six years – in favour of a larger 4 510m² facility. Construction of the new Digistics warehouse facility started at the end of May this year. There are 120 construction workers benefitting from the project and once completed 30 people will benefit from permanent jobs.

ID Logistic will create work for 50 people once operational and during the construction phase 200 people would have benefitted from jobs created.

UTi Distribution currently operates from a 2700m² building but will be moving to a 2800m² building which is currently under construction thus increasing their capacity with a 100m2.  The new site is expected to be completed closer to the end of this year.

Dr Vilakazi added that attributing to the CDC’s success as a “leading catalyst for socio-economic growth”, the CDC not only provides a competitive investment location for investors but this is supported by value-added business services.