Gauteng Business 2018-19 edition

SPECIAL FEATURE
series of conferences and workshops that culminated in the creation
of an Aerotropolis Master Plan.
In June 2016, the Gauteng City Region Economic Indaba was attended
by all the mayors of the region and the national Minister of
Finance. Gauteng Premier David Makhura gave notice of “how we can
unlock, jump-start and re-ignite a sustainable and inclusive growth
trajectory for key sectors of our provincial economy”.
Opportunities for the private sector were mentioned in connection
with several aspects of the City Region Indaba, including the necessity
for infrastructure investment. It is instructive to look at how many
logistics-related developments are mentioned in relation to the various
corridors for development that have been identified.
The corridors and focus areas are:
• Thami Mnyele: transport, BRT, M&T Development and Plumbago
Industrial Park
• OR Tambo Aerotropolis: creative sector, technology, research
and development and logistics
• Thelle Mogoerane: logistics, Carnival Junction, OR Tambo inland
port, Prasa rolling stock manufacturing facility run by Gibela Rail
Consortium which will deliver 600 trains valued at R51-billion.
The Tambo Springs inland port and logistics gateway has been established
near Katlehong as an inter-modal facility which can transfer
containers from rail or road to storage facilities and ultimately to the
customer. Existing freight rail lines run through the site and link it to
the seaports of Durban, Cape Town and Ngqura (Port Elizabeth). The
aim with this new facility is to improve efficiency. It is run by the Tambo
Springs Development Company. The intention is to add to the port:
• a logistics park (transportation, processing, manufacture,
warehousing and distribution)
• a business park with a retail element
• a residential component
• an agri-industrial section.
A June 2017 investment conference put the spotlight on Ekurhuleni’s
economy which currently is primarily driven by manufacturing, mining
and agriculture.
With a strategic location and identified aerotropolis corridors, investment
in the following sectors is anticipated: manufacturing, aviation
and aerospace, transportation and logistics.
At a Manufacturing Indaba in June 2017, mayoral committee
member Councillor Nkosindiphile Xhakaza told the delegates that
the Aerotropolis Masterplan “is our development strategy for building
Ekurhuleni as an airport city that is a gateway to Africa and the world”.
He said that the aim was to place Ekurhuleni as a strategic logistics
centre for the national economy, “especially in providing beneficiation,
storage and transportation
of industrial products to external
markets”.
Ekurhuleni is hoping not only
to be the national centre for logistics
and to boost its already impressive
manufacturing capacity
by building more infrastructure
and freight hubs, but it intends
the aerotropolis to play a role in
helping to consolidate the integration
of the nine town councils
that went into making up the
metropole.
Incentives
Logistics is obviously a major
part of the equation and facilities
such as the Tambo Springs
inland port will add capacity to
the region. However, using closeness
to the airport as a factor in
driving down costs can also be
a way of promoting manufacturing.
When this factor is supported
by national, provincial
and local government incentives,
the business proposition for investors
becomes very attractive.
The OR Tambo Industrial
Development Zone is one of several
sites allocated by the South
African government to stimulate
investment in targeted sectors.
The OR Tambo IDZ supports the
development of businesses that
work in the beneficiation of precious
metals and minerals sector,
with a focus on light, high-margin
manufacturing of South African
precious and semi-precious metals.
Export is encouraged. The site
has specific precincts in which
various sectors are given priority.
23 GAUTENG BUSINESS 2018/19