pre-feasibility assessment report - Innovationeasterncape.co.za

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African Development Economic ConsultantsADECerven ranging in size from 2,500m 2 to 8,000m 2 and with consolidationopportunities. Other industrial parks in this area include Trilogy Industrial Park,Aldo Business Park, and Greenbushes Industrial Park. Some of the tenants thathave located in this node are Corrobrick, Spectacular Shop Fitters, Eagle RoofTiles, Rent a Store, Moladi Manufacturing, Knight Medical, and Sew Eurodrive.Deal Party. This node is located on the north side of Nelson MandelaMetro, along the N2 Highway. Two main roads bound the area: OldGrahamstown Road in the west and Burman Road in the east. Building sizesrange from 2,000m 2 to 10,000m 2 . There is a mixture of A- to C-grade industrialspace in this area but overall, Deal Party is considered to be a prime location inthe industrial market. Some of the industrial parks located in this node are theHoward & Young Industrial Complex and the BMI Industrial Park.Korsten/ Neave. Korsten is an industrial node offering smaller spaces of2,000m 2 or less, best suited for small manufacturing concerns. Korstenencapsulates Neave Industrial Area, which lies between Stanford Road,Kempston Road, Uitenhage Drive, and the N2. Neave is home to companieslike Everready and Continental Tyres. Most manufacturing industries in thisarea are focused in the motor industry.Kempston Road has a mix of heavy and light industrial. Companieslocated here include Ecola Plastics, Bearings International, Kempston TruckLogistics, General Motors and New Holland Construction. The RKA IndustrialPark was borne from the former Union Spinning Mills, with GLA of 25,000m 2subdivided to make it more marketable. The present tenant mix comprises oftransport companies: Magro Express, Maxi Trucks, Origifoam, and SegardMasurel.North End. The North End is one of the older, established industrial areasin the NMBM. The area is bound by three main road arterials: Harrower Road,Kempston Road, and Uitenhage Drive. North End can be disaggregated intotwo parts, forming a distinction between light and heavy industry. The easternpart of North End comprises largely of small auto-related light industry. Typicalcompanies found here are vehicle workshops, wiring companies, autoelectronics and engineering companies. The western part of North End hasmore heavy industry and larger industrial concerns like Aspen Pharmacare andCadbury. Clicks and Waltons have their distribution and warehouses located inthis area.Walmer. This is a newer industrial area that is accessible via the M7 andM9. Walmer was formerly a residential node which is slowly being transformedinto industrial uses. Walmer’s strategic location next to the airport has helped itattract couriers and other logistics companies. Some companies located in thisnode are Sublime Glass, Mega Freight, Marble Classic, PVM NutritionalSciences, Cordustex, and Mastercraft. Jet Park is a small industrial parklocated within this node offering space for storage, engineering, andconstruction companies.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 76
African Development Economic ConsultantsADECCoega. The Coega Industrial Development Zone is located 20 kilometresnorth-east of Port Elizabeth. It comprises the largest industrial zone in SouthAfrica and covers an area of 11,000 hectares. It is serviced by the deepwaterport of Ngqura. A total of 14 specialised zones have been created within theCoega IDZ. These zones include: Commercial and Logistics, AutomotiveCluster, Light Industries, Training/ Academic Cluster, Light Metals and MediumMetals industry, Ferrous Metals, Chemical Cluster, Port Area, Port-RelatedFacilities, Mariculture and Coastal Culture, Petrochemical Cluster, IntermodalFacility, Logistics Support, and the Airport and Air Logistics Cluster. Coega hasattracted an increasing number of industries, which tend to be spread out widelyacross the extent of the area.Uitenhage. This community northeast of Port Elizabeth has become anemerging, important industrial node largely as a result of Volkswagen locating amajor automobile assembly plant in this area. Furthermore, VW’s policy thatmajor suppliers have to be located within a 50-kilometre radius has helpedattract many of VW’s suppliers to Uitenhage. The other advantage thatUitenhage offers is access to a large, available labour pool in Kwazakhele andNew Brighton.Perseverence is accessible via the R367 (between Swartkops andDespatch) and the R75 (between Port Elizabeth and Uitenhage). Some of thecorporations located here include Spar, Coca Cola, South African Breweries,Clover, and Wilroy Engineering.Markman. This older industrial area is located close to Coega and the Portof Ngqura. It is widely believed that Markman will eventually be incorporatedinto Coega.Struandale/ Kwaford. These large industrial areas have evolved over time.The tenant mix here comprises of steel companies, food distributors like Sparand Pick n Pay, and manufacturers and distributors of timber products.Vacancy Trends. Brokers indicate that there is at least 200,000 squaremetres of vacant space in the metro area, amounting to 20% of the totalinventory. This compares with vacancy of 80,000 or about 8% prior to therecession. Some businesses have closed recently, resulting in the release of asubstantial amount of industrial space onto the market.The NMBM area has a legacy of huge manufacturing concerns like UnionSpinning Mills who, subsequent to their closure, dump large and unsuitablewarehouses and industrial buildings on the market. Many owners are thuspartitioning large blocks of space so as to make them more marketable. Thearea’s industrial development is mostly tenant driven, although speculativedevelopments have arisen in the Greenbushes area. Developers are not tooconcerned about present market conditions because they feel that existingvacant space will be absorbed in near future. The table below provides anindication of industrial vacancy trends for the period 2007 to 2009. In someinstances there were no data available.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 77
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