Wednesday, March 27, 2013

■ SOUTH AFRICA: Dube Tradeport, Action Group India sign MoU for $200mln development at Durban King Shaka International Airport.

Dube TradePort Corporation logoOn the sidelines of the ongoing BRICS Summit in Durban, South Africa, Dube TradePort Corporation and Indian conglomerate, Action Group, signed a Memorandum of Understanding for the USD216million (ZAR2billion) development of a "Mega Industrial Integrated Township" located adjacent to Durban's King Shaka International Airport. The development will form part of the airport's long term "aerotropolis" expansion vision.

The planned project
The planned project (DTP)
The organisations jointly announced the signing of the MoU for the development of a Mega Industrial Integrated Township on a 240 hectare site adjacent to the existing Dube TradePort. The project will form part of the future aerotropolis – or airport city – surrounding Durban’s King Shaka International Airport, 30km north of the city.

Once completed, the entire project is set to bring in USD2billion worth of direct foreign investment into the Province.

Dube TradePort Corporation, a Schedule 3C Provincial Public Entity of the KwaZulu-Natal Provincial Government, is responsible for the overall development of Dube TradePort, the heart of the prospective aerotropolis.

New alliance partner, Action Group, is a highly diversified India-based business conglomerate with a major presence in that country’s real estate sector through its Suncity Projects operation. This entity is a key player in the development of industrial parks, special economic zones, the retail sector, offices and hotels, as well as residential
dwellings. Founded in the early 1970s, Action Group began in the footwear manufacturing industry, launching Action Shoes, now the largest selling shoe brand in India. Seeking continuous innovation and growth, the organisation has successfully diversified into and becoming a leader in other economic sectors, including electronics, chemicals, healthcare, steel and power, flex manufacturing, MDF and particle boards and coal mining interests.

Commenting, Dube TradePort Corporation’s Chief Executive Officer, Ms Saxen van Coller, said: 
“We regard this as a critically important milestone in the development of the aerotropolis. The signing of the MoU is indicative not only of the business potential of this region, but also the confidence investors are showing in Dube TradePort and its immediate environs.”
She added: “Both we, of Dube TradePort Corporation, and Action Group believe implicitly that the Mega Industrial Integrated Township will greatly complement the current trade port and King Shaka International Airport, further boosting development and investment here.”
Echoing these sentiments, Action Group’s Managing Director, Mr Ajay Aggarwal, said his organisation’s market investigations here showed that with appropriate support, incentives and suitable infrastructure, an enabling environment could be created for the attraction of significant levels of foreign direct investment to South Africa.
“It is the primary intention of the Mega Industrial Integrated Township to provide easy ‘gateway’ access and a one-stop-shop approach for, specifically – though certainly not exclusively – international investors, manufacturers and industrialists seeking to spread their business interests and associated activities to South Africa,” said Mr Aggarwal.
It is envisaged that the new industrial development will be undertaken in several phases.

The Mega Industrial Integrated Township is designed to bring on-stream state-of-the-art infrastructure, inclusive of new industrial space, commercial areas, a logistics hub comprising truck, bus and container depots, warehousing facilities, a weigh-bridge centre, a training institute and a South African first-of-its-kind industrial retail park.

The development will give new impetus to industrial growth in KwaZulu-Natal, significantly increasing the province’s share of world trade, while also contributing to sustainable employment creation, the attraction of modern technologies and the enhancement of infrastructure. In addition, such a development and associated capital inflows will benefit local suppliers and increase the beneficiation of local products.

Dube TradePort and the proposed neighbouring Mega Industrial Integrated Township combine to provide ideal new opportunities for businesses within the Brazil, Russia, India, China and South Africa (BRICS) initiative – as well as other countries – to invest in South Africa’s east coast business gateway to Africa and the world.

See also this post: ■ SOUTH AFRICA: (Pics) Johannesburg's OR Tambo Int'l Airport set to embark on its "Aerotropolis East" initiative.