pre-feasibility assessment report - Innovationeasterncape.co.za

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African Development Economic ConsultantsADECIndustrialA similar assessment of the industrial market potential was also conductedas input to the Science Park assessment. It is important to understand industrialmarket conditions as they relate to the opportunities for collaboration and spinoffgenerated through research and development activities at the science park.Construction TrendsManufacturing forms the backbone of the Eastern Cape economy. Theimportance of this sector is reflected in the amount of investment taking place inconstruction of manufacturing and warehouse space. Over the last ten years,there have been almost 500 industrial and warehouse buildings permitted inEastern Cape Province, resulting in the provision of over 500,000 squaremetres of industrial space. The largest amount of industrial space came on linein 2001, totalling 121,284m 2 .Table 9.INDUSTRIAL AND WAREHOUSE CONSTRUCTIONTRENDS, EASTERN CAPE, 1998-2008Year#Buildings Area (m 2 ) Cumulative (m 2 )1998 59 51,848 51,8481999 51 39,795 91,6432000 48 47,316 138,9592001 36 121,284 260,2432002 22 39,655 299,8982003 20 21,189 321,0872004 29 15,420 336,5072005 39 50,700 387,2072006 44 50,652 437,8592007 61 66,213 504,0722008 39 38,361 542,433Change 98-08 -20 -13,487 452,224Per Year 08-04 41 41,111 41,111Per Year 04-08 43 44,270 44,270Sources:Statistics South Africa and ADECThe province has seen an average of 41 industrial buildings and 41,100square metres of industrial space permitted on average per year between 1998and 2008. Aside from the large amount of space added in 2001, this trend hasremained relatively consistent, with 44,270 square metres added per yearduring the last five years.Trends in industrial construction in Nelson Mandela Bay mirror those of theprovince as a whole. Manufacturing remains a strong economic driver inNMBM, although it its dominant position is gradually being overtaken by theservice sectors.103 Algernon Road, Norwood (Johannesburg). Tel (011)728-1965 / 6690 Fax (011)728-8371Adec@ADEC1.com. Suite 131, Private Bag X5, Norwood 2117 SOUTH AFRICA 74
African Development Economic ConsultantsADECTable 10.INDUSTRIAL AND WAREHOUSE CONSTRUCTION TRENDS,NELSON MANDELA BAY, 2000-2008Year Buildings Area (m 2 ) Cumulative (m2)2000 13 19,086 19,0862001 18 45,849 64,9352002 12 35,471 100,4062003 12 16,814 117,2202004 7 3,549 120,7692005 7 12,008 132,7772006 14 14,606 147,3832007 24 36,646 184,0292008 31 31,759 215,788Change 00-08 18 12,673 196,702Per Year 00-08 15 21,856 21,856Per Year 04-08 17 19,714 19,714Sources:Statistics South Africa and ADECNelson Mandela Bay accounted for almost 55% of the provincial total ofindustrial space permitted since 2000. In terms of number of buildings, theNMBM accounted for 40% of the provincial total of 448 permitted during thisperiod. Construction peaked in the period of 2000-2001 and declined again in2002. However from 2006 onwards there was an increase in construction whichhas continued since that time. The latest figures indicate a slight decline inconstruction which could largely be attributed to the downturn in the economy.Existing Industrial Market ConditionsNelson Mandela Metro has a large industrial economy driven by theautomotive sector. The major established industrial areas are Deal Party, Neve,Perseverence, Markman, Uitenhage, Korsten, North End, Struandale andCoega. Coega is the large industrial development zone (IDZ) oriented to thenew port and major new infrastructure investment. However there are alsonewer emerging industrial areas like Walmer and Greenbushes that areopening up in the western edge of the city because of a lack of suitable vacantindustrial sites in the older, north-side industrial areas. There are also small,light industrial parks that have come online recently in Fairview.Industrial Inventory and Key Nodes. There is no comprehensive dataon the total amount of industrial stock in the Nelson Mandela Metro. However, asurvey is being undertaken by SAPOA to inventory the city’s industrial buildingstock. ADEC estimates that there is about 3.1 million square metres ofindustrial space in this market. The following provides a discussion on theindustrial nodes in the metro area.Greenbushes Industrial Node. Greenbushes is located on the Old CapeRoad, four kilometres away from the N2, accessible via the Sea View Road.Various industrial parks have been constructed in this area. The earliest wasGreenbushes Business Estate, which comprises serviced, light industrial-zoned103 Algernon Road, Norwood (Johannesburg). Tel (011)728-1965 / 6690 Fax (011)728-8371Adec@ADEC1.com. Suite 131, Private Bag X5, Norwood 2117 SOUTH AFRICA 75
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