A major player in South Africa’s logistics business environment has become the first private sector investor to take up premises at Dube TradePort following the recent signing of a multi-million Rand deal.
The R350 million investment by the Durban-based Shree Property Group is a significant coup for Dube TradePort Corporation and is indicative of the fact that the private sector has recognised the broad business opportunities available within the Dube TradePort precinct. This investment is likely to stimulate the development of additional property ventures by the business community.
The investment, taking up almost 100 000 square metres in the Dube TradeZone adjacent the Dube Cargo Terminal, comprises the construction of a large air freight logistics warehousing, cold storage and distribution facility. It is envisaged that the new enterprise will become operational during the first quarter of next year, 2013.
The Shree Property Group owns and operates a large property close to Durban harbour and is a key participant in citrus export through its port-based facilities. The Dube TradePort deal is regarded as an extension of the company’s operations, enabling it to now develop a significant presence in the air freight logistics business. In addition, the Group has taken office space in the new and environmentally-friendly 29° South office complex, located in the nearby Dube City development.
The air freight logistics facility is set to create some 1 648 new direct, indirect and induced employment opportunities during the construction phase. With more than 34% of this number being unskilled individuals, the project is set to provide substantial levels of critical skills transfer. The business, once operational, is likely to generate some 750 direct new employment opportunities, sustained year-on-year, and contribute almost R586 million per annum to eThekwini’s Gross Domestic Product.
Some 23ha of land has been allocated for the first phase development of Dube TradeZone, with this deal accounting for 35% of available space, bringing the total area let to more than 44% of the total.
In addition, Dube TradePort Corporation is set to invest in two new Dube TradeZone facilities. Firstly, the entity plans to construct a R28 million, 2 000 square metre state-of-the-art flight kitchen facility, which will be commercially leased to Air Chefs. Such an investment will enable Dube TradePort Corporation to provide increasingly comprehensive services to airlines seeking to operate from King Shaka International Airport.
The second facility will add to Dube Cargo Terminal’s humanitarian function. Air Mercy Services already operate from the facility and this is shortly to be followed by Dube TradePort Corporation’s construction of a R15 million warehouse on a 4 250 square metre site, which is to be leased to the Gift of the Givers Foundation.
Construction of both these facilities is scheduled to begin in July this year, with completion by year-end. The investments are destined to increase the level of services offered and activities undertaken in the Dube
TradePort precinct.
Image supplied by photographer Jacques Naude and Independent Online.