South African Business 2019 edition

SPECIAL FEATURE
infrastructure and freight hubs. It also wants the aerotropolis concept
to play a role in helping to consolidate the integration of the nine town
councils that went into making up the current metropole.
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.
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 National Department of Trade and Industry (dti) is the lead
agent in the creation of Special Economic Zones, which are part of the
national Industrial Policy Action Plan (IPAP). SEZs are designed to attract
investment, create jobs and boost exports. Industrial Development
Zones are a type of SEZ.
Other important participants in building on the aerotropolis concept
include Airports Company South Africa (ACSA), operator of nine
of the country’s airports, Air Traffic Navigation Services (ATNS) and local
and provincial governments and their agencies.
In the Free State, Bloemfontein is pursuing an Airport Node project
within a broader N8 Corridor development scheme. A project covering
2 000ha and expected to cost in the region of R100-billion over several
phases has been initiated at the Bram Fischer International Airport. A
development plan for the area has designated five precincts: Terminal,
Boulevard, General Aviation, Airport Industria and Grasslands. The Road
Lodge Hotel was built within this conceptual plan. A range of land
uses beyond the hotel are envisaged, including warehousing, hospital
care, commercial, service stations, conferencing, retail, motor vehicle
dealerships, car rental, logistics hub and a showground.
A major reason for the building of a new airport north of Durban
was to stimulate cargo volumes, particularly in the agricultural sector.
King Shaka International Airport (KSIA) and the nearby Dube TradePort
are intended to complement one another, a good example of the
aerotropolis idea. The opening of a R99-million cold-storage facility at
Dube TradePort in 2017 gives farmers and exporters additional flexibility,
allowing them to store chilled and
frozen perishable goods.
Dube TradePort is a 3 000-hectare
development that encompasses
the airport and is ideally
situated for any logistics business
as it is very close to Africa’s busiest
cargo port (at Durban) and 140km
from the deepest natural harbour
in the southern hemisphere
where the Port of Richards Bay
and the Richards Bay Industrial
Development Zone (RBIDZ) are
located.
Dube TradePort is a Special
Economic Zone and it encompasses
a cargo terminal, a serviced
industrial estate, 12 hectares of
office, retail and hospitality space
and an agri-zone for growing,
packaging and distribution of
high-value perishables and horticultural
products.
The focus in Cape Town in recent
years has been on growing
the number of direct flights to
the city. A record 10-million arrivals
passed through the gates of
Cape Town International Airport
in 2016 as a result of a programme
called Air Access. The next big
thing at CTIA is going to be a
new runway. Airport Industria is
already a well-established commercial
and industrial zone. With
increased volumes into the airport,
it likely to continue to grow.
The re-aligned new runway will
also open up new commercial
opportunities. ACSA is looking
to promote economic activity
in the previously undeveloped
Symphony Way area through site
zoning. Commercial and logistics
are the two most likely kind
of activities suited to the newly
targeted area.
SOUTH AFRICAN BUSINESS 2019
54