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KwaZulu-Natal Business 2020-21 edition

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The 2020/21 edition of KwaZulu-Natal Business is the 12th issue of this unique publication that, since its launch in 2008, has established itself as the premier business and investment guide for the KwaZulu-Natal Province. In addition to the regular articles providing insight into each of the key economic sectors of the province, there is a special feature on the vital role played by ports in the province, from the coal exported from Richards Bay to the new cruise liner terminal addition to the Port of Durban. The 10th anniversary of the 2010 FIFA World Cup coincides with the birthday of the Moses Mabhida Stadium, an iconic design that has become a standard feature on the KwaZulu-Natal sporting and events calendar. Likewise the Durban ICC which continues to burnish the province’s reputation as meetings and convention centre.

OVERVIEW Oil and gas A

OVERVIEW Oil and gas A huge LPG storage facility has been built at Richards Bay. The supply of liquid petroleum gas (LPG) is set to be made easier and more reliable with the erection of the 22 600-ton Mounded LPG Facility at Richards Bay. Bidvest Tank Terminals has constructed the R1-billion storage facility for Petredec, which trades, transports and distributes LPG and other commodities. South Africa’s annual consumption of LPG, currently at 400 000 tons, is expected to rise to 600 000 tons. If a private partner can be found, a liquid natural gas (LNG) plant will produce 2 000MW at Richards Bay. This forms part of national government’s allocation of 3 126MW to natural gas in its medium-term energy policy to 2030. The world’s four largest LPG storage tanks at the Bidvest Tank Terminals site in Richards Bay. Image: Bidvest The National Department of Mineral Resources and Energy (DMRE) decided in 2016 that one of the first two gas-to-power plants to be constructed under the Independent Power Producer Procurement Programme would be allocated to Richards Bay. This has the potential to turn the Richards Bay Industrial Development Zone (RBIDZ) into an energy hub. The fact that neighbouring Mozambique has significant offshore deposits is a factor in this ambition. To produce its allocation of 2 000MW, the plant would have to use a million tons a year of LNG. An indication of the scale of activity in Mozambique came in 2019 when Anadarko Petroleum, a US company, signed off on a -billion project to build an LNG plant. The projected spin-offs for the South African economy are estimated to top R7-billion. Online Resources National Energy Regulator of South Africa: www.nersa.org.za Petroleum Agency SA: www.petroleumagencysa.com South African National Energy Association: www.sanea.org.za South African Petroleum Industry Association: www.sapia.co.za Sector Insight Italian company Eni is looking for hydrocarbons. Eni, one of the world’s biggest energy companies, has an agreement with Sasol Petroleum International to explore for hydrocarbons off the coast of KwaZulu-Natal. The regulator and promoter of oil and gas exploration in South Africa, Petroleum Agency South Africa, has awarded coalbedmethane-gas exploration rights in KwaZulu-Natal to NT Energy Africa, which has a partnership with the Central Energy Fund. These awards are for onshore exploration. The Petroleum Agency SA is an agency of the National Department of Energy. Getting fuel to the province of Gauteng is the key mission of the new multi-purpose pipeline (NMPP). Refined products such as jet fuel, sulphur diesel and both kinds of octane petrol are carried. The infrastructure of Transnet Pipelines is said to reduce the number of fuel tankers on South African roads by about 60%. KwaZulu-Natal is home to two major oil refineries and is the first link in the pipeline chain that links Gauteng province, the industrial heartland of South Africa, with vital fuels. The Port of Durban handles 80% of South Africa’s fuel imports. KwaZulu- Natal is thus a key player in the country’s oil and gas industry. ■ KWAZULU-NATAL BUSINESS 2020/21 34

Construction and property OVERVIEW Durban’s beachfront promenade now extends from the harbour to Blue Lagoon. A private company is tackling urban regeneration in Durban, one building at a time. Serial property investor Jonny Friedman of Urban Lime has carefully selected certain precincts with potential for a mix of uses, including offices and accommodation. Pioneer Place, Durban Club Chambers, 320 Pixley and Florida Road are among their investments. Friedman is also invested in converted warehouses in London and various Cape Town properties. This private initiative chimes with a public programme that aims to make Durban’s inner city “Africa’s leading, most vibrant, liveable, walkable City Centre”. This is the Inner City Local Area Plan (LAP) for Durban. Developed for the eThekwini Municipality by a Joint Venture called IPPU, which comprises Iliso, TPI, PMSA, UrbanEcon including Cox Architecture, Urban Solutions, Urban Earth, Jo Lees and Joe Kitching. A major milestone was reached in November 2019 when the beachfront promenade extension reached the harbour. This means that residents anywhere in the city can now step onto the promenade, from the harbour in the south to Blue Lagoon in the north. The project began in early 2018 and cost R400-million. The Point Waterfront Development (directly behind the latest extension to the promenade) is a major project that is transforming what was an under-utilised and somewhat rundown part of the city into a vibrant, multi-use precinct. Some projections put the total potential investment value of the project at R40-billion and the number of permanent jobs to be created at 6 750. It offers a mix of office space, retail shops, residential dwellings and leisure options. The 55ha site has already seen significant investment. A cruise terminal in the harbour backing on to the Point has been approved, while other major projects in the inner city include the Warwick Junction transport interchange and the Centrum Government Precinct which will formalise the relationship between buildings such as the International Convention Centre and a related hotel, the library, council chambers and the redevelopment of Gugu Dlamini Park. According to the organisers of the 2019 KZN Construction Expo, infrastructure will attract more than R200-billion in investment over seven years and R35-billion will be spent over 15 years at the Port Waterfront development. The King Shaka International Airport and Dube TradePort are also attracting property investments. Online Resources Construction Industry Development Board: www.cidb.org.za Master Builders Association KwaZulu-Natal: www.mba-kzn.co.za SA Estate Agency Affairs Board: www.eaab.org.za SA Institute of Valuers: www.saiv.org.za Sector Insight Durban could become the continent’s most liveable city. Two new industrial parks are being developed: Cornubia is part of a larger project near Umhlanga and Clairwood in Durban South will offer more than 300 000m² of A-grade industrial space. Tongaat Hulett Developments (THD) launched the nTshongweni Urban Development on either side of the busy N3 highway west of the city in 2018. The Cornubia project covers 1 300ha about 7km from the airport and encompasses indust-rial, commercial, residential sections. The southern part of the project will cater for 24 000 homes, industrial development and more than one-million square metres of commercial floor space, all complemented by public open spaces (430ha) and social and community facilities. KwaZulu-Natal has a number of brick companies and four cement factories. Three of these are run by NPC at Simuma, Durban and Newcastle, and the company has a further six sites for concrete and two for aggregate. NPC is part of the Intercement group. Lafarge has several aggregate quarries and eight Readymix plants around the province. The company’s grinding operation in Richards Bay closed in 2017. ■ 35 KWAZULU-NATAL BUSINESS 2020/21

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