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Coega port project attracts big names in industry
The government, business and trade unions are backing the Coega initiative, writes DON ROBERTSON
SOUTH AFRICA's first industrial development zone and deep-water port, planned for the Coega region on the coast 22km outside Port Elizabeth, will move a step closer to reality with the publication of a final feasibility and planning strategy at the end of March. If accepted, construction of the port could begin before the end of the year with groups such as Gencor, Pretoria Portland Cement, Kynoch and Willard Batteries showing an interest in the development. Companies like Iscor, Samancor, Alusaf and some petroleum companies which have bulk cargo to move will also be targeted. The initiative, to be known as the Coega Industrial Development Zone, is being promoted by the Port Elizabeth Regional Chamber of Commerce and Industry. It has the support of all levels of government, the Departments of Economic Affairs and Housing, the Department of Trade and Industry and organised labour through Cosatu. The value of projects under discussion are worth about R3,5-billion with the port expected to cost between R300-million and R1,5-billion, depending on which options are accepted. Port Elizabeth Chamber of Commerce chief executive officer Kevin Wakeford, who has been seconded to the Coega Industrial Development Zone Initiative, says the area consists of about 10 000ha and the plan is to develop a world-class port, with purpose-built facilities and infrastructure. It is also hoped to offer tax incentives, duty-free benefits and an acceptable labour dispensation. "This could be the first industrial development zone in South Africa and could act as a trail blazer for others," he says. The Coega project has been nine months in conception. The March 31 date for the issue of the feasibility study is to allow Gencor ample time to consider the site for a R2-billion zinc smelter with a capacity of 220 000 tons a year. It will also produce sulphuric acid from imported zinc sulphides. Japan's Mitsui group has also expressed an interest in the smelter, while other South-East Asian companies are keen to participate in the project. Portnet also needs an early deadline for its own construction plans of the port which will have to be approved by the the Cabinet. Kynoch, the fertiliser arm of AECI, is considering a R1-billion plant, while PPC is investigating a R750-million cement factory. To be internationally competitive, a purpose-built port facility adjacent to a well-structured and fully acceptable serviced industrial area is essential, says Wakeford. But, to be attractive to international investors and customers, incentive and concession packages will also be necessary. The proposed Coega Industrial Development Zone is ideally situated to provide all these elements. Saldanha and Richards Bay plus the country's four other ports will be fully utilised by 2003. The new port is close to the Port Elizabeth/Uitenhage metropole and has ample road and rail links which can be upgraded. The port's draught is planned to be at 23m, which would be ideal for bulk loading. It is protected by Algoa Bay, has ample electricity through Eskom's Grassy Ridge substation and has an ubundance of water, says Wakeford. "The zone would be developed on a negotiated labour dispensation, with agreed rates and increases in advance to make forward planning feasible and the investment attractive. Organised labour has accepted the need for this arrangement." The use of conveyor technology will add to the competitiveness of the port. Investors who have already expressed an interest in the project indicate direct employment of 3 000 workers with the potential to employ as many as 90 000 with support industries. Development of the region, which is in dire need of industrial expansion, could double the current R16-billion which it contributes to the GDP. "Government is enthusiastic about the project, but we will have to put pressure on them to act," says Wakeford.
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