Ricochet News

Plans in place to expand Mandela Bay logistics park

Oct 13, 2014
Plans in place to expand Mandela Bay logistics park

The Coega Development Corporation says that while the potential still exists in the Nelson Mandela Bay Logistics Park to accommodate more investors in the 56-hectare Precinct A, plans are in place to develop the 126-hectare Precinct B.

The Corporation’s Annual Report states that the aim is to accommodate automotive, rail-related and other manufacturing investors in Precinct B.

“The CDC is intensifying its activities to improve the competitive position of the IDZ and Nelson Mandela Bay Logistics Park, and strives to deliver two competitive manufacturing locations to attract newcomers to the automotive sector in South Africa.”

The Annual Report notes that the “Look East Strategy” is “paying dividends, as at any given point about 40% of the Coega IDZ pipeline is made up of potential investors with direct and indirect links to the Asian continent”.

It states that Coega appeals to a number of types of Asian businesses including suppliers companies, which are following customers, such as first and second-tier automotive component manufacturers to supply, for example, FAW’s local content requirements.

Further, it says, Coega appeals to market-seeking foreign direct investment businesses.

These include those in the Renewable Energy field, such as component localisation for wind and solar power generation (South Africa and Africa, on and off-grid demand)”.

Another field is transport and allied industries: component localisation linked to large government capital expenditure, such as the manufacture of rolling stock and freight and commuter services.

Another area where Coega appeals, is with developers and operators or ware-houses and distribution centres “for consolidation of imports and exports, taking advantage of the air, port, rail and road infrastructure linking Coega to the hinterland and sub-Saharan region”.

Yet another is Foreign Direct Investment in natural resources such as the beneficiation of minerals and agricultural products. - metrominutes