PART C, D AND E
Rural 29 Rural 29 SCM Planning
7.1 PREPARATION/RESOURCING/IMPLEMENTATION
7.1.1 AUTOMOTIVE SUPPLY PARK (ASP)
The project is strategically located on a 1,000ha agricultural site in Illovu South which is to be developed as a KZN Automotive Supplier Park to strengthen the automotive manufacturing sector in the city and broader KZN region. The projects is located to the south of the city and has easy access to the N2 Corridor both North and South. This projects is located in the Prime Investment Corridor it has significant multiplier effects for the motor industry development in the city. From a connectivity point of view the site can access the N2 which will feed into the cities transport network emanating from the north into the city. This project is viewed as one of the key economic development projects to the south of the city and can assist in providing much needed employment opportunities in the south of the city.
7.1.1.1 SOCIO-ECONOMIC BENEFITS
Broader estimated economic and socio-economic impacts from the total development are shown below in Table 33:
Table 35 Socio-Economic Benefits
7.1.1.2 PROJECT STATUS
Specialist studies and the public participations for the BAR and WULA have been completed, with construction of bulk infrastructure targeted for completion by August 2022 when serviced platforms are handed over for top-structure development.
Some of the key activities which are currently underway include the following:
• Feasibility study and business case preparation underway for presentation to PSC shortly;
• Negotiations underway on the implementation and funding of bulk infrastructure;
• Project feasibility is underway for submission at the end of March 2020;
• Workshop has been held with Toyota to review the implementation, incentive package for occupiers and joint marketing of the development to foreign investors.
7.1.1.3 INVESTMENT STRATEGY
In manufacturing terms, original equipment manufacturers or OEMs are companies that make a part or subsystem used in another company’s end product. The supplier park is envisaged to become a centralised hub of Toyota’s OEMs, with reputed benefits to these companies including world-class benchmarked facilities, lower cost of goods and distribution efficiencies, better productivity, efficiency and quality, shorter customer order cycles and a road network design which supports all types of articulated road vehicles and provides ample turning circles for ease of access, among others.
The intention is to submit applications to National Treasury to extend the SEZ Zone currently in place around the King Shaka International airport and Dube Trade Port to the ASP. Benefits offered to businesses operating within the Special Economic Zone are geared towards promoting business growth, revenue generation, employment creation, the export of value-added commodities, and the attraction of both foreign and local investment – all enhancing South Africa’s manufacturing and export capabilities.
As with the development around the airport, Dube Trade Port Corporation, who are wholly owned by the KwaZulu- Natal Provincial Government, will act as land developers for and on behalf of the province in conjunction with other key stakeholders, such as the Municipality and Toyota.
7.1.1.4 SPATIAL PLANNING AND TARGETING
The proposed automotive supplier park is planned to be developed on a 1 000hectare site on the Illovo River bank indicates that the largest government-driven project planned for the south in at least the last decade is on track for construction to begin in July 2019. The site falls within the Prime Investment Corridor and is located alongside the N2, just 16km south of the Toyota Prospecton plant and 38km away from the Durban harbour.
7.1.1.5 PREPARATION
A framework plan is busy being finalised by the consultants for the broader 1,000 ha land parcel acquired by Dube Trade Port with specific focus on the ASP area for which a town planning application will be submitted shortly in terms of SPLUMA. Although this programme is driven largely by provincial government (EDTEA) there is a strong focus on ensuring buy-in and support from the other key stakeholders, namely the eThekwini Municipality as well as the private sector, specifically Toyota, currently the main OEM in the city. Key components of Phase 1 are outlined below in Table 34:
Priority Project Description Municipal Provincial National 1 Submission of application for
SPLUMA
Authorising authority Implementer and funder
2 Sewage transfer main from pump station 1 to
Kingsborough WWTW and fixing of pipeline to existing steel bridge over Illovo River
Authorising authority.
Funding under negotiation
3 Transfer Scheme from the Hutchison Park Sewage Pump Station to the Amanzamtoti WWTW
Implementer and Funder
2 3ML Reservoir, 640KL Water tower with Pump Station
Authorising authority.
Funding under negotiation
Still
negotiating
3 New substation at ASP, 132kVA powerline from Hutchinson Park – ASP.
Authorising authority.
Funding under negotiation
Boulevard Road Authorising authority.
Funding under negotiation Upgrading of P197 for
Temporary Access
Authorising authority.
Funding under negotiation New interchange off the N2
south
Authorising authority.
Funding under negotiation Table 36 Phase 1 Key Developments
7.1.1.6 RESOURCING
The Auto Supply Park is being facilitated by Dube TradePort, EThekwini Municipality and Economic Development Tourism and Environmental Affairs (EDTEA), who have signed an MOU to collaborate on the Project.
The implementing agent is Dube Trade Port Corporation, which is wholly owned by EDTEA.
As such the land was purchased by EDTEA from Illovo sugar for the development of the ASP.
Other key governmental departments have been engaged in the planning process and discussions are continuing to outline the roles and responsibilities of each party in relation to the funding and implementation of the infrastructure above. These discussions will culminate in the conclusion of Service Level Agreements.
7.1.1.7 REPORTING AND EVALUATION
The indicators for this project will be populated along with the other council requirements as per the requirements of Circular 88.
Automotive Supplier Park site
Figure 84 Automotive Supplier Park Framework
Catalytic Project Matrix - ASP Response
Location Located in the PIC SDF Investment
Node
Responsiveness to the IPTN Not located in the IPTN however has good access via the R102 and the N2 Corridor N/S
Proposed Land Use Industrial and Manufacturing
Impact on Rates Positive Rates Generation
Employment Generator Positive Rates Generation
Precinct Management Private Managed Industrial Estate once Completed