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#Durban DigOut Port

93K views 379 replies 35 participants last post by  romanSA 
#1 ·
We know KSIA will be the new airport and there are plans for the old Duban International Airport so lets put them all together.

Does someone know if SAPs and Airbase will move too?

Anyone know area of airport ?
 
#216 ·
Bunker tax on shipping gets the nod

Bunker tax on shipping gets the nod


Durban - With only three days left to set a strategy against global warming for the coming years, negotiators on Wednesday proposed an even lower temperature rise and gave a nod to a bunker tax on shipping.

"Significant progress has been made," said the ad-hoc working group on long-term co-operative action.

The text emerged a day after the launch of high-level talks involving heads of state and government and ministers. Negotiators have been meeting since November 28 to wrestle over the way forward.

More than 190 countries and 15 000 official delegates and observers are meeting in Durban under the looming cloud of the expiration of the world's only infrastructure to combat climate change. The Kyoto Protocol expires in December 2012.

The proposed text calls for the world's average temperature increase over pre-industrial times to be limited "to well below 1.5 degrees Centigrade" - a drastic decrease over the 2°C agreed upon in the past two climate summits.

Lowered expectations

That would mean even greater reductions in carbon emissions that are blamed for global warming. But even the current legally-binding and voluntary reduction pledges won't hit the 2°-mark. Rather, the UN Environmental Programme said on Tuesday, the world is on course for a 4° rise over the coming century.

Another key part of the document is how to fund the ambitious $100bn Green Climate Fund that was charted in Cancún in 2010. Negotiators adopted a proposal from Oxfam and other environmental groups to pursue a bunker tax on international shipping that would produce about $10bn a year for the fund.

But environmental groups are worried that the US has refused to even commit to backing the bunker tax, let alone discuss any other specifics about where the money will come from for the fund. US climate envoy Todd Stern insists that finalisation of details about governance and operation of the fund must come first.

UN Secretary General Ban Ki-moon on Tuesday lowered expectations for the outcome of Durban talks, saying the world's financial crisis is a large hurdle for climate change efforts.

Ben Grossman-Cohen, a spokesperson for the Oxfam group, greeted the inclusion of the bunker tax in the document.

"It is significant that it made it through to this text, which is now under consideration by top ministers," he said.


- SAPA


so all that bunker fuel pollution is just going to continue add nausiem......not easy fine tuning ship engines
 
#217 ·
TPT ready to compete to operate terminals at Durban ‘dig-out port’
By: Terence Creamer

13th December 2011

State-owned Transnet Port Terminals (TPT) is planning to bid, possibly with partners, for the right to operate any possible new terminal capacity that could arise should South Africa proceed with the development of the so-called ‘dig-out port’ at the old Durban International Airport site, in KwaZulu-Natal.

The bigger Transnet group is in the process of securing the land from the Airport Company of South Africa and it has indicated previously that the development, which would be a Transnet National Ports Authority (TNPA) project, could involve an initial investment of some R50-billion.

TPT CEO Karl Socikwa told business people in Johannesburg on Tuesday that its volume projections indicated that additional container terminal capacity could be required by as early as 2019, notwithstanding current initiatives to bolster the capacity of the Durban Container Terminal.

TPT would have to compete for the right to operate on the site in line with South Africa’s ports legislation. But Socikwa insisted that it would not have an unfair advantage over its competitors simply as a result of the fact that both TPT and TNPA, the port landlord, resided within the same corporate entity.

That said, TPT would “fight” for the opportunity to participate in what could become a future key “gateway” harbour.

Similarly, the unit, which had 16 terminals and assets of R13.5-billion, was hoping to position itself as a favoured African trans-shipment port system.

To achieve this, attention was being given to improving efficiencies at the existing terminals, as well as to building capacity at the Port of Ngqura, in the Eastern Cape, which was currently the group’s main trans-shipment hub.

Socikwa said the uptake at Ngqura had been “beyond our wildest expectations”, and two additional ship-to-shore cranes would be added by January, raising the harbour’s total crane complement to eight.

In the year-to-date, total container volumes across all of TPT’s facilities had risen to 2.2-million twenty-foot equivalent units (TEUs), from 2.16-million TEUs in the corresponding period last year.

Edited by: Creamer Media Reporter


http://www.engineeringnews.co.za/ar...e-terminals-at-durban-dig-out-port-2011-12-13
 
#218 ·
R100bn Transet project moves forward
January 23 2012 at 10:05am
By Leanne Jansen

INLSA


Air Force Base Durban, home to 15 Squadron since the early 1980s, is to move to King Shaka International Airport to make way for Transnet’s R100 billion dig-out container terminal.

The move from the Prospecton site, which is estimated to cost “a minimum of R800 million”, has been confirmed by the Department of Defence.

But while questions about the time frame of the move and who will foot the bill remain unanswered, DA MP David Maynier has expressed concern that should the department itself fund the move, it could prove detrimental to an already strained SA Air Force budget.

“The air force is not able to optimally operate the Gripen or Hawk fighter aircraft because of underfunding,” he said.


The base is next to the old airport site, which the state-owned freight logistics and transport entity is keen to snap up. According to the national Department of Public Works, Transnet had expressed its intention to buy the land the base occupies, although “to date no formal offer or terms and conditions have been determined”, department spokesman Thami Mchunu said.

Although Transnet and Airports Company SA are yet to conclude negotiations on the price tag which the former will shell out for the old airport site, the relocation of Durban’s air force is a clear signal that port development plans are surging ahead.

The Department of Defence has until now remained tight-lipped, saying only that a move is “possible”. But it finally released the information after being confronted with its 2010/11 annual report.

The document states that a decision to move Air Force Base Durban to King Shaka airport has been reached, but has not been implemented yet because of the financial implications.

“The total cost for the relocation is estimated at R800m,” the report says.

Department spokesman Siphiwe Dlamini has confirmed the contents of the document, saying that “intense discussions” between stakeholders, including Transnet and the Department of Public Works, are under way.

The operational and domestic areas of the base occupy 27.8ha at present, but the department would not reveal the staff complement.

Dlamini said the nature of the infrastructure and the equipment that would need to be moved and built at the new site complicated the task.

“When King Shaka was built, it was not built with security or military considerations in mind,” he said. “Construction will have to start from scratch, so this could be considered phase two of building for the airport… Office space, workshops, hangars and a range of things which come with a base would need to be built. The cost could be higher; R800m is the minimum.”

King Shaka airport spokesman Colin Naidoo said that while he was aware of the air force plans, no formal discussions had been entered into.


Development

The Mercury understands that La Mercy may also be the new home of the SAPS air wing situated adjacent to the old airport site, but SAPS spokesman Vish Naidoo has said the unit was staying put until told otherwise.

The chairman of the KwaZulu-Natal Growth Coaliton, Moses Tembe, said he could not think of any implications the relocation would have for business, but said it could only be positive as it made way for the port’s development.

“Our understanding is that in the first quarter of this year, a deal will be consummated.”

Transport Minister S’bu Ndebele said that since Acsa had paid more than R6 billion to shift its operations from the old airport in the south of Durban to La Mercy, part of its return should be the resale of the old site.

“They should get at least R2bn out of the resale,” he said. It has been reported that Transnet has set aside R1.5bn for the deal.

The first phase of the port’s construction, expected to start in 2015, is set to cost R50bn. - The Mercury
 
#219 ·
KwaZulu-Natal to punt new port to Japanese firms
SBU MJIKELISO
Published: 2012/03/13 08:44:35 AM


KwaZulu-Natal Premier Zweli Mkhize intends to use his pending visit to Japan to encourage automotive components companies to manufacture their products at a port and petrochemicals hub to be built at the old Durban airport.

Mr Mkhize announced in his state of the province address last month the provincial government would go ahead with plans to dig out a port at the old airport to expand the Durban port’s capacity. The new section will allow for the expansion of existing facilities such as oil refineries, and is expected to attract more than R100bn in investment over the next 20 years. An automotive supplier park and car terminal will also be included in the project.

The province announced a number of infrastructure projects following President Jacob Zuma ’s multibillion-rand infrastructure programme, including R5bn to develop the KwaMashu-Umlazi north-south rail corridor and a business express service between Pietermaritzburg and Durban. Mr Mkhize said the infrastructure would lead to greater social and economic development and job prospects for the province.

At a meeting with CEOs of Japanese automotive components companies yesterday, he said a manufacturing hub would be built at the new port, the focus of which would be sending products to other parts of the country and parts of Africa. "The country is embarking on an infrastructure revolution," Mr Mkhize said.

"We are holding discussions with these (Japanese) investors around the manufacturing hub, because it is going to be the centre of major investment in the province in the future. We are going to be building a new dig-out port — that will probably take up to 20 years to mature into full operation."

The Japanese foreign ministry has invited Mr Mkhize for a four-day visit to discuss ways of increasing Japan’s direct investment in SA. No signed trade agreements are expected to arise from the trip, however, and no South African private company will accompany the provincial government delegation.

Most of the automotive investment lobbying on the trip will be geared towards boosting the capacity of the Toyota plant in Durban, which employs more than 6500 people. Mr Mkhize said he believed Toyota would produce more if the manufacturing of components was brought closer to the plant.

Toyota SA senior vice-president Nigel Ward said the plant hoped to improve on the 50000 vehicles it produced each year, towards a capacity of 220000 by 2020.

"We are currently the primary users of the (Durban) port, not just for the exportation and importation of parts but also for vehicles. The whole development that the premier spoke about has a huge synergy to our thinking. We want (the port) close, flexible and for it to support our future requirements," he said.


mjikelisos@bdfm.co.za

http://www.businessday.co.za/articles/Content.aspx?id=167285
 
#220 ·
BIG step closer to this happening... SALE OF THE LAND!

Transnet mulls Durban dig-out port partnerships, confirms R1.8bn land deal

By: Terence Creamer
10th April 2012

Freight logistics group Transnet has concluded a R1.8-billion property deal with fellow State-owned company (SoC) Airports Company South Africa for the acquisition of the former Durban International Airport (DIA) site, which Transnet aims to develop into a new port over the coming years.

Transnet CE Brian Molefe reported on Tuesday that the much-anticipated transaction had been concluded ahead of the two SoCs’ financial year-ends of March 31, 2012. However, the deal still required sanction by the competition authorities.

Transnet National Ports Authority (TNPA) had indicated previously that it planned to pursue a so-called ‘dig-out port’ at the DIA site and the project was likely to involve an initial investment of some R50-billion.

Molefe confirmed in an interview with Engineering News Online that TNPA would proceed with the development in collaboration with the private sector under its so-called private sector participation (PSP) scheme.

Therefore, only a small portion of the R47-billion capital budget that had been set aside for TNPA under the group’s larger R300-billion, seven-year investment programme would be directed towards the project and the environmental studies that would be required to proceed with the development.

Nevertheless, the project could move ahead as a PSP during the seven-year period, running from the group’s 2012/13 financial year through to 2018/19.

In fact, Engineering News Online established separately that Transnet, which had more or less excluded major PSPs from its Market Demand Strategy, was working on a new version of its PSP in a bid to facilitate complementary private-sector infrastructure investments of as much as R150-billion.

“The biggest PSP that will ever happen in this country is going to be on the DIA site . . . which we hope to dig out and develop into a port,” Molefe said in an interview.

“The money for the development of that port is not in the R300-billion,” he added.

A process was being designed for a build-operate-and-transfer-type development of the port and associated terminals and the details should emerge either during the course of the current financial year or during 2013/14.

“Quite a lot of work needs to go into this . . . but definitely during the next financial we expect this project to go out on tender.”

The project would take 10 to 15 years to develop, but Molefe expects the first shovel in the ground within “five to six years time”.

http://www.engineeringnews.co.za/ar...tnerships-confirms-r18bn-land-deal-2012-04-10
 
#222 ·
Transnet mulls Durban dig-out port partnerships, confirms R1.8bn land deal

10th April 2012

Freight logistics group Transnet has concluded a R1.8-billion property deal with fellow State-owned company (SoC) Airports Company South Africa for the acquisition of the former Durban International Airport (DIA) site, which Transnet aims to develop into a new port over the coming years.

Transnet CE Brian Molefe reported on Tuesday that the much-anticipated transaction had been concluded ahead of the two SoCs’ financial year-ends of March 31, 2012. However, the deal still required sanction by the competition authorities. The Competion Commission had recommended that the transaction be approved by the Competition Tribunal without conditions.

Transnet National Ports Authority (TNPA) had indicated previously that it planned to pursue a so-called ‘dig-out port’ at the DIA site and the project was likely to involve an initial investment of some R50-billion.

Molefe confirmed in an interview with Engineering News Online that TNPA would proceed with the development in collaboration with the private sector under its so-called private sector participation (PSP) scheme.

Therefore, only a small portion of the R47-billion capital budget that had been set aside for TNPA under the group’s larger R300-billion, seven-year investment programme would be directed towards the project and the environmental studies that would be required to proceed with the development.

Nevertheless, the project could move ahead as a PSP during the seven-year period, running from the group’s 2012/13 financial year through to 2018/19.

In fact, Engineering News Online established separately that Transnet, which had more or less excluded major PSPs from its Market Demand Strategy, was working on a new version of its PSP in a bid to facilitate complementary private-sector infrastructure investments of as much as R150-billion.

“The biggest PSP that will ever happen in this country is going to be on the DIA site . . . which we hope to dig out and develop into a port,” Molefe said in an interview.

“The money for the development of that port is not in the R300-billion,” he added.

A process was being designed for a build-operate-and-transfer-type development of the port and associated terminals and the details should emerge either during the course of the current financial year or during 2013/14.

“Quite a lot of work needs to go into this . . . but definitely during the next financial we expect this project to go out on tender.”

The project would take 10 to 15 years to develop, but Molefe expects the first shovel in the ground within “five to six years time”.

http://www.engineeringnews.co.za/article/transnet-mulls-durban-dig-out-port-partnerships-confirms-r18bn-land-deal-2012-04-10
 
#223 ·
Durban dug-out port to boost SA trade

Share | 13 April 2012

South African state company Transnet has signed a R1.8-billion deal to buy the old Durban International Airport, which will be turned into a multibillion-rand dug-out port that will boost the country's competitive edge while creating thousands of new jobs.

KwaZulu-Natal Premier Zweli Mkhize on Friday welcomed the signing of a deal between Transnet and Airports Company South Africa (Acsa) for the purchase of the old Durban International Airport.


'Investment spin-offs and opportunities'

Mkhize said the new dug-out port, expected to be ready by 2019, would give South Africa and KwaZulu-Natal a major competitive edge, offering the country and the province considerable investment spin-offs and opportunities.

"We have Durban as the busiest port on the continent and Richards Bay managing the biggest volumes of cargo in South Africa," Mkhize said. "With the addition of the dug-out port, we have an important strategic asset."

Transnet's transport and freight logistics facilities would also provide an effective platform for forging trade links between provinces, with neighbouring states and with the rest of the world, particularly the Asian and South American sub-continents, Mkhize said.


Automotive component supplier park

"The speed in the roll-out of these developments is encouraging," he said, adding that there were plans for the creation of an automotive component supplier park around the dug-out port.

This would enable the province's automotive industry double its size over the next decade, and become a leading exporter of vehicles.

The dug-out port, together with the new Dube Trade Port, would greatly expand the capacity of KwaZulu-Natal to import and export goods, Mkhize said.

"The principal component of the Dube Trade Port is a new international passenger and cargo airport, but it is the new facility's proximity to the harbours of Durban and Richards Bay that give it the edge as a transport and logistics hub.

"Rail and road links up and down the coast to these two major seaports will make it easy to switch cargo between different modes of transport. Large quantities that arrive by sea can be dispersed in disaggregated volumes at speed by air."

Source: BuaNews



Read more: http://www.southafrica.info/busines...e/durban-dugout-port-130412.htm#ixzz1rvYHV2My
 
#225 ·
Another step closer. The deal has been approved by the Competition Commission (which as some if you may recall, was Gideon Novick's big threat when he wanted to develop the DIA site as a rival airport to KSIA. Of course, there's simply no competition in terms of which would have more benefits for the city and the country (3rd city airport vs globally relevant mega port)...

----------------------

Durban to get new port
Mon, 16 Apr 2012 11:04

Durban International Airport is set to be dug out and converted into the city's second sea port following approval from the Competition Tribunal, the Mercury newspaper reported on Monday.

The tribunal had approved Transnet's R1.8 billion purchase of the airport from the Airports Company SA.

Transnet planned to invest R100 billion in the facility, which would have 16 container berths, five automotive berths and four liquid bulk berths.

Durban International Airport, situated south of the city, was decommissioned in May 2010 following the opening of King Shaka International Airport north of the city.


http://business.iafrica.com/news/789608.html
 
#226 ·
I don't know how Novick thought his proposal for a third city airport could ever hope to compete with a second city port. This is what some of have said before, even before the second port was mooted. In time, SA coastal cities (especially Durban) will be more important to SA's economy than Gauteng cities.

--------------

South Durban 'set to eclipse Joburg as biggest economic hub'

Durban's dig-out port could propel the city to take over as the new economic hub of the country. Already land sales are booming in the south Durban basin area.

Transnet's dig-out port, to be located at the old Durban International Airport site, which they bought for R1.8 billion this week, signals a catalyst for economic development in south Durban, an area which is already the second largest contributor to the country's GDP.

Speaking on the sidelines of the provincial Treasury's Economic Symposium yesterday, the MEC for Finance, Ina Cronjé, said that the intention was to bolster the province to become the main economic hub of the country.

"That's where we want to go because our economy is the second largest in the country. Gauteng is the largest, making up 34 percent of GDP, and we are just under 17 percent of GDP but population-wise we are very similar. We have the strategic advantages of two ports, an international airport and a long coastline which they don't have. We believe we can become the economic hub of the country," Cronje said.

The project is expected to create 20 000 direct jobs, and was expected to cost more than R100bn over the next 25 years.

The first phase was expected to be completed by 2019, and the rest by 2037. A terminal with 16 container berths, five automotive berths and four liquid bulk berths were some of the plans revealed this week.

Mark van Wyk, the Prospecton Business Forum chairman, said the port would have a major impact on the region.

However, the changes may not be positive news for some business owners who stand in the path of the channel.

"We've got members who will be forced to relocate according to the plans that we have seen," said Van Wyk.

Meanwhile, the issue of land is being hotly debated.

Keith Chetty, a commercial real estate manager at Lighthouse property group, said: "The demand for commercial and industrial property has increased dramatically in recent times in and around the current port."

Chetty said some residents living on the perimeter of the old airport would be hoping to sell their homes and land for much higher prices, to supply the expected increase in property demand.

Trevor Martin, who handles the Durban south for the Chalupsky industrial and commercial property group, said while land was in short supply around the old airport site, Transnet's injection into the area would positively stimulate jobs in the area.

"With commercial and industrial businesses wanting to come in, it would make the whole southern node from Clairwood to the Southgate industrial area in Amanzimtoti a very sought after logistics hub," said Martin.

He added that it would be interesting to see what would happen to the Clairwood Racecourse site, up for sale.

Safmarine's Southern Africa cluster manager, Jonathan Horn, said: "A bigger, more effective port will help shipping lines, such as Safmarine, improve transit times, service reliability and vessel turnaround, while offering the benefits of increased efficiencies and flexibility."

Alan Olivier, the Grindrod CEO, said: "Durban is becoming congested and although there is some scope to increase capacity in the current port, in the longer term the dug-out will be essential for not only the region's growth but the country's growth, especially when you consider that over 67 percent of the country's container traffic flows through this port."

The DA'S Johann Krog said the dig-out port greatly enhanced the province's prospects of becoming the gateway to the continent.

However, south Durban residents were uncertain about the impact the dig-out port would have on the area.

Isipingo Ratepayers' Association chairman, Dharmanand Nowbuth, said residents were fearful of what the future held.

"While we are happy that such a big project is happening that would stimulate the country's economy, people in the area want to know what it means for them, and how they would benefit from jobs.

Nowbuth's concern was that people "in the know" have already been snapping up land in the area and establishing trucking businesses, in anticipation of the dig-out port.

"Somehow people have been buying vacant land and turning them into trucking businesses. We may end up like Clairwood," said Nowbuth.

He added that the municipality needed to tell residents if the area surrounding the old airport would be rezoned industrial to accommodate the expected demand for land once the port construction began.

Rishi Singh, chairman of the Clairwood Ratepayers' Association, said residents felt that the government was putting money before people.

"There are many subsistence farmers in the area, and how will they benefit from the dig-out port," he questioned.

Desmond D'SA, of the South Durban Community Environmental Alliance, said there had been no communication by Transnet with the local communities such as Bluff, Clairwood and Wentworth.

"Silence breeds mistrust. Very soon Transnet will face the anger of the people."

D'SA said the communities surrounding the area were "products of forced removals" and with the new dig-out port, people would not be happy to be forced to move again.

The Independant on Saturday


Posted at 08:39AM Apr 16, 2012 by Editor in Cities and Towns


http://www.iolproperty.co.za/roller/news/entry/south_durban_set_to_eclipse
 
#227 ·
As I have always said, this is THE catalyst project for Durban. The public-private approach will also help it come to fruition faster and will also help to make it less of a financial drain upfront on Transnet. The possibilities and opportunities stemming from this move are still beyond comprehension. Its not just the massive spend on digging and the port infrastructure we are going to see here, but massive knock on effects to the automotive and logistics industries. Not to mention what it will open up in the current port when the chemical industries are relocated. This really is a game changer for Durban and is essential for the entire SA economies future. Anyone who ever supported Novick in his marketing PR quest will hopefully have their blinkers removed now
 
#228 ·
I fully agree with you dysan.... massive game changer...

I'm thinking Toyota are probably dancing around with glee... they'll almost be able to drive their vehicles off the production line and onto a RO-RO boat for export... I very much doubt there are many (if any) vehicle factories that would be able to boast that.

I'm also thinking the residential areas surrounding the dugout port will change very rapidly... and maybe a part of the bluff will become relatively exclusive being an enclave of decent(ish) housing surrounded on all sides by industry.
 
#230 ·
Bugger.. who decided to give EL that little gem? :)... Looking at Google Maps it does look like you are correct, but then its a good thing.... 2 harbours in the country where that is possible is a damn good thing in my opinion (even though they'll be for competing manufacturers.)
 
#232 ·
Transnet follows up Durban airport acquisition with initial dig-out tenders

By: Terence Creamer
18th April 2012

State-owned freight logistics group Transnet has followed up its recent R1.8-billion purchase of the old Durban International Airport site, in KwaZulu-Natal, with the release of a number of separate tenders in support of its proposal to developed, in phases, a new dig-out port on the property.

The first phase, which was currently scheduled for completion in 2019, was expected to require an initial investment of R50-billion, with the balance of the project to be completed by 2037.

The first request for proposals (RFP) related to the appointment of a transaction adviser for the project.

Transnet told Engineering News Online that the adviser would provide technical assistance relating to the establishment of a business model for the development of the harbour.

The group currently envisaged the phased development of a facility comprising 16 container berths, five automotive berths and four liquid bulk berths.

Its high-level infrastructure plan indicated that the container terminals would have the collective capacity to handle 9.6-million twenty-foot equivalent units, or TEUs, once all four phases were completed. That, the group argued, would be sufficient to address South Africa’s container capacity requirements to 2040.

The transaction adviser would be expected to complement and supplement the work, resources and expertise that Transnet had dedicated to the project internally. The consultant was expected to cover the legal, financial, environmental, economic and technical aspects of the proposed development.

“In order to facilitate the opportunity for financial planning and policy engagement, it is necessary to complete the assignment within an 18-month period,” Transnet said in a response to questions. The tender would close on May 11.

The second RFP invited consultants to conduct conceptual and prefeasibility studies for the development and was due to close on May 8.

Transnet would employ a four-stage project lifecycle process for its capital expansion projects, with the two front-end loading (FEL) studies making up the first two stages. "FEL implies upfront planning and engineering in order to reduce, as much as possible, the risk of scope creep and to ensure financial accuracy for the project," Transnet explained.

The FEL-1, or conceptual study, was scheduled to be completed by the end of March 2013, while the FEL-2 study should be finalised by the end of March 2014.

Environmental studies would also form part of concept and prefeasibility project stages and Transnet said a tender had, thus, been issued for the appointment of a 'sustainability lead'. This appointment was said to be imminent.

In addition, a specialist communications service provider would be appointed to drive a stakeholder mapping process, as well as to develop a communications strategy and implementation plan for the engagement of all stakeholders. “We are looking at organisations that specialise in fields such as public relations, strategy and reputation management, issues and crisis management, media relations, internal communications, event management and social mobilisation."

In a recent interview with Engineering News Online, CEO Brian Molefe said the group planned to proceed with the development in collaboration with the private sector under its so-called private sector participation scheme.

Therefore, very little money had been set aside for the dig-out port in Transnet’s R300-billion, seven-year investment programme to add railways, pipelines and port capacity between 2012 and 2019.
 
#237 ·
Property investors eye old airport site
June 1 2012 at 01:37pm
By Suren Naidoo and Gugu Mbonambi


INLSA
The R430-million deal to buy the prime Clairwood- Racecourse land from Gold Circle appears to prove that investors are eyeing the South Durban Industrial Basin for development.


The government’s plans for a multibillion- rand dig-out port at Durban’s old airport site and a development corridor along the N3 into the city from Joburg has led to increasing demand for properties from developers and speculators in these areas.

The R430-million deal by JSE-listed Capital Property Fund to buy the prime Clairwood Racecourse land from the Gold Circle racing group was “a clear indication” that investors were eyeing the South Durban Industrial Basin, according to property experts speaking to The Mercury.

The racecourse deal, together with Transnet’s R1.8-billion agreement to buy the old airport land from the Airports Company of SA, effectively means that two of the biggest commercial and industrial property deals in SA have taken place in the South Durban area.

“Plans around the dig-out port and N3 logistics and development corridor into Durban are yet to be finalised, but property speculators are looking to get in early and are trying to snap up properties in these areas,” said Miles Taylor, a property executive at Standard Bank and past chairman of the SA Property Owners Association in KwaZulu-Natal.

“Demand for property around the Durban Port is already high, but a shortage of zoned industrial land in the city has pushed up prices in the last few years. This has seen Durban command some of the highest industrial land prices in SA. However, prices have come down marginally due to the slowing economic environment,” he said.

Taylor said Transnet was changing its land tenure agreements to accommodate expansions and upgrades at the port, which has also resulted in the “knock-on effect” of higher demand for properties in South Durban.

“Demand for property around the port is still high due to supply issues… The sale of Clairwood Racecourse and plans around its property development will help, but this will take years to come on line. There are rezoning and environmental impact assessment issues to deal with,” said Taylor.

“Due to the fact that this site is yet to be zoned for commercial and industrial development, it might be bogged down with all these approvals. The city is unlikely to allow the entire site to be developed and needs to finalise its spatial planning for south of Durban,” he said.

Taylor said it was likely the plan was to establish a property project along the lines of the highly successful Riverhorse Valley business park north of Durban and not heavy industry.

Capital Property Fund director Andrew Teixerria said the group intended developing an A-grade warehousing and logistics park to the tune of about R2.5bn on the racecourse site to service the new dig-out port.

“We are not looking at any manufacturing, but the park will be purely for warehousing and distribution. Capital Property Fund is the third largest property fund listed on the JSE, with assets of about R18bn. Property is our core business and the racecourse site caught our attention because of its prime location next to the harbour and South Durban industrial area.”

Teixerria said the deal to buy the site awaited approval from the Competition Commission.

The racecourse would be leased to Gold Circle for two years after the finalisation of the deal. During this time the group would sort out development plans, rezoning and environmental approval.

He said the total racecourse land size was about 76ha, but the whole site would not be developed as part of the company’s plans.

Gold Circle chairman Robert Mauvis told The Mercury last week that the sale was also dependent on a successful rezoning of the land and an environmental impact assessment, but local ratepayers and environmental groups had signalled they would oppose the proposed new land use.

According to the eThekwini Municipality’s development planning, environment and management department, the racecourse is zoned as “private open space”.

Rob McInerney, of Durban-based Share-List Property, said several companies were interested in the Clairwood Racecourse site and property speculators were eyeing sites in South Durban, around both the existing and proposed dig-out port.

“It ended up with the big boys, Capital Property Trust and the Cavaleros Group’s vying for the site… Since the beginning of the year there has been increased interest from local and international investors both in South Durban and the west or N3 highway area going up to Pietermaritzburg,” he said.

“In the harbour area, properties are fetching prices of around R1 600/m2, with very little land available and increased demand.

“In the new development node of Riverhorse Valley in north Durban, a price of R2 200/m2 was achieved recently, which highlights the demand in Durban for commercial and industrial land,” said Mc Inerney.

He said in addition to national companies, Indian and Chinese investors were looking at the N3 logistics corridor between Durban and Pietermaritzburg. He said several major investments were being planned or were already under way in areas such as Cato Ridge, Shongweni and Hammarsdale.

Anand Joseph, KZN regional executive of Nedbank Corporate Property Finance, said Durban’s role “as a key South African port city continued to drive steady demand for good-quality production and warehousing space”.

He said in spite of the challenging economic environment, segments of the property market in KZN were recovering, notably in the industrial property sector.

“A number of recent developments within the KZN industrial property market should serve to bolster this cautiously optimistic outlook… The most significant includes the possibility of large areas of land owned by Tongaat Hulett and land owned between the Durban-Pietermaritzburg corridor becoming available, as well as the finalisation of the deal by Transnet to acquire the old airport property for the purpose of extending its port facilities and supply network.”

http://www.iol.co.za/mercury/property-investors-eye-old-airport-site-1.1309966
 
#238 ·
Competition Commission approved the "merger" between Transnet and ACSA

In a Government Gazette published today 8 June 2012, the Competition Commission approved the merger between Transnet and the Airports Company of South Africa:

NOTICE 465 OF 2012
COMPETITION TRIBUNAL
NOTIFICATION OF DECISION TO APPROVE MERGER
The Competition Tribunal gives notice in terms of rule 35 (5) (b) (ii) of the "Rules for the
conduct of proceedings in the Competition Tribunal" as published in Government
Gazette No. 22025 of 01 February 2001, that on 11 April 2012 it approved without
conditions the merger between Transnet SOC Ltd and Airports Company South Africa
Ltd.
(Case no.: 16/LM/Feb12)
(COM case no.: 014027)
The Chairperson
Competition Tribunal
Although the words merger is used it really mean that the acquisition of the airport site by Transnet have been approved.
 
#240 ·
Awesome...

Hopefully soon we'll start seeing some concrete developments taking place in regards to this...

I'm actually looking forward to the day that the earthworks start tbh.

I wonder if I can find a site that will have a nice clear overview of the site and setup a timelapse thing for the duration of construction, I reckon it would make an awesome video.
 
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