TONGAAT AND ADVTECH SIGN LANDMARK SCHOOL DEVELOPMENT DEAL
Tongaat Hulett has signed a landmark deal with education group ADvTECH to develop the first new school in the uMhlanga region in more than 14 years. The 2 000 student facility, located within the renowned Sibaya Coastal Precinct, is scheduled to open in 2020.
The project is expected to provide relief for the growing demand in the region for quality schooling. The facility will be developed under the ADvTECH Academies brand, which provides education to a broad range of income earners.
“We are very pleased to be working with ADvTECH on this development, which has entrenched its position as a leading player in the education market,” says Sithembiso Mthembu, Head of Development Execution for Tongaat Hulett Developments. “The company clearly sees value in the opportunity, and as the developers of Sibaya Coastal Precinct we’re excited to be able offer this type of amenity to residents in the precinct and surrounding region.”
Mthembu says the decision to construct the new school follows a period of identifying market demand and potential, followed by intensive engagement and negotiations with educational institutions towards finding the most appropriate and beneficial solution.
ADvTECH, he says, responded immediately with an exciting concept and proposal.
The school is being developed in Node 5 of the 1 000 hectare Sibaya Coastal Precinct, on which construction of civil infrastructure commenced last year. The first phase of this project is expected to be completed later this year, with plans to build some 10 000 residential units by the time the entire project is completed.
Nodes 1 and 5, located on the east side of the M4 motorway, are the priority focus areas. Mthembu says Sibaya’s big attraction is its convenient location between facilities like King Shaka International Airport and major centres such as uMhlanga and Ballito and it was exactly this that appealed to ADvTECH.
“The Sibaya Coastal Precinct site has been selected as it is becoming an extensive development node and the developers together with ADvTECH believe that a school within the node will be very necessary to service this community (as well as the surrounding region) which will be growing considerably in the coming years”, says Vongani Mbhokota ADvTECH Group Properties Executive.
The ADvTECH Group Properties division has more than 14 years’ experience in school design, development, construction and facilities management and successfully owns and operates more than 80 schools across South Africa and the rest of Africa.
“Schools in our country are more than just bricks and mortar structures, they are about building strong communities so all children can get the best possible start in life. By investing in the education precinct, we are investing in our country’s future”, says Mike Aitken ADvTECH Schools Division CEO.
“With new residential developments, it is important to provide those facilities (such as schools) that will cater to current and future residents. Families in the respective communities will benefit from new schools with qualified teachers that will ensure their children can continue to receive world-class education in safe, modern and friendly facilities close to their homes”, he adds.
This is a theme that Mthembu endorses, indicating that the ADvTECH school project is the start of the development of more education facilities in future. “The number of residential units in Sibaya Coastal Precinct will be growing significantly in the next five to ten years, and so will the opportunities for more educational facilities to meet demand.”
In the meantime, the new ADvTECH Academies facility will be a welcome option for Sibaya Coastal Precinct residents, as well as families within the surrounding areas. Mthembu says the school could attract learners from as far afield as Durban North and Ballito due to the high number of individuals who commute from those areas to work in uMhlanga. There remain a number of other educational opportunities in further developments such as Cornubia.
TONGAAT HULETT LAUNCHES SUGAR REFINERY PROJECT IN MOZAMBIQUE
Tongaat Hulett announced details of its ongoing commitment to the long-term success of the Mozambique Sugar Industry with a new investment of some Mt2,5 billion (R550 million) in the construction of a Sugar Refinery at its Xinavane operation. On the morning of 24 July 2017, Prime Minister of Mozambique, His Excellency Carlos Agostinho Do Rosário, Chief Executive Officer of Tongaat Hulett, Mr Peter Staude, the Minister of Trade and Industry Ernesto Max Tonela and numerous other dignitaries joined stakeholders at the Ground Breaking Ceremony in Xinavane, as they celebrated the launch of the project.
The Ground Breaking Ceremony will be followed by a Gala Dinner in Maputo, attended by the Prime Minister, His Excellency Carlos Agostinho Do Rosário, Tongaat Hulett Chairman, Bahle Sibisi, Tongaat Hulett CEO, Peter Staude and the MD of Tongaat Hulett Mozambique, Rosario Cumbi. Numerous dignitaries, including the Ministers of Trade and Industry, Agriculture, Finance and Economy, and various stakeholders, will attend these events.
The existing sugar refining capacity in Mozambique is some 20 000 tons per annum, while it is estimated that some 70 000 tons of refined sugar is consumed annually. The majority of Mozambique’s refined sugar requirements is currently imported. The construction of Tongaat Hulett’s 90 000 ton per annum Sugar Refinery, due to be completed in the second half of 2018, will be sufficient to meet projected local annual market demand for the next seven to ten years. The completion of the Sugar Refinery at Xinavane will ensure that this operation further entrenches its position as the leading sugar investment in Mozambique.
Peter Staude, Tongaat Hulett CEO said, “The Sugar Refinery Project reflects Tongaat Hulett’s commitment to the future of the Mozambican Sugar Industry, relevant sugar industry stakeholders including customers, the agricultural sector and the broader economy as the project will ensure that previously imported refined sugar is now produced in Mozambique while also providing further support for the significant number of rural community members that benefit from the industry.”
“We are cognisant of the role the Sugar Industry plays in the socio-economic development of the country and in the rural communities in particular. We are delighted to learn about this further investment by Tongaat Hulett, which will catapult government efforts for domestic production, and reduction of imports”, said the Prime Minister of Mozambique, His Excellency Carlos Agostinho Do Rosário.
The refined sugar produced will be industrial/bottler grade and carry food safety FSSC 22000 certification. White sugar is required to produce soft drinks, dairy, beer, sweets and confectionary products. It is anticipated that the increased availability of white sugar will contribute towards the growth of these industries in Mozambique. The Xinavane Refinery, located some 150 kilometres from Maputo benefits from its proximity to the Maputo harbour to export and supply surplus white sugar to African markets.
The design and engineering of the Sugar Refinery innovatively integrate proven technology with state-of-the-art Tongaat Hulett process and equipment design to produce high quality white sugar, meeting international standards and the requirements of the most demanding customers. The majority of the refinery equipment will be fabricated from stainless steel, ensuring that the plant design complies with the most stringent food safety and quality requirements. The design also facilitates future expansion of the capacity of the refinery.
Recognizing with appreciation the efforts of the Mozambican government to create a business environment that supports investment, Peter Staude concludes, “Tongaat Hulett’s ongoing investments in the Sugar Industry in Mozambique supports Government’s objectives of growing the local economy, promoting domestic production and contributing to the balance of trade equilibrium. The company is committed to working with Government and other relevant stakeholders to facilitate the success of the Sugar Refinery Project and its other investments at Xinavane and Mafambisse, thereby contributing to social upliftment, rural development and job creation.”
PARTNERING TO IMPROVE FOOD SECURITY
Tongaat Hulett in partnership with the Mngampondo community and Siyazisiza Trust, a northern KZN non-profit rural development organisation, are working to improve food security and grow the rural economy. The Mngampondo food security project, which will establish 6.8 hectares of food crops, has already planted 2 hectares of maize, 0.5 hectares of beans and 0.7 hectares of butternut since commencement in June 2016.
Currently, the food security project has 67 members who range between the ages of 27 years and 84 years. They are in the process of registering a primary co-operative, Vukuzame with the Department of Trade and Industry. The project members visited the uThungulu and Durban Fresh Produce Markets to establish business linkages. This is in line with the Agri-Park model which seeks to encourage the development of all farmers and maximise farmer access to markets, with a particular focus on rural communities. The model also seeks to maximise the use of existing infrastructure such as roads, electricity and irrigation infrastructure to support the economic activities currently being undertaken within Mngampondo.
The food security project is part of the broader Tongaat Hulett local economic development initiative under the uMlalazi local municipality, with this intervention under the Ndlangubo traditional leadership council. This project forms part of the broader irrigation scheme within Mngampondo. An amount of R189 507 was allocated towards the implementation of this food security project.
The members attended a cooperatives training workshop organised by Canegrowers in August 2016 and have received training in a wide range of themes, which include health and nutrition, agri planning, soil health, pest and weed control, record keeping and basic financial management.
The approach looks to strengthen the capacity of local communities to analyse their livelihood systems, identify their main constraints and test possible solutions. By merging their own indigenous knowledge with scientific information, farmers can eventually identify and adopt the practices and technologies most suitable to their livelihood system and needs, to become more productive, profitable and responsive to changing conditions.
Agriculture is the most dominant sector in the Mngampondo area where over 80% of households have established homestead gardens which supply most of the vegetables they consume at home. This area has an estimated population of 1 371 people and 243 households.
A baseline survey by Siyazisiza Trust revealed that most households in the area are female-headed, house six members and have an average monthly income of R1486,40 from salaries/wages and R1703.50 from social grants.
Within the scope of this project, the Siyazisiza Trust assists the project members to access fresh vegetables for their households, ensures that the 6.8 hectares is under food crop production and promotes access to trading opportunities with local businesses, government and community members.
The main challenges faced by project members are uncontrolled livestock grazing due to the lack of proper fencing as well as cumbersome administrative processes. Grant funding of R20 000 has been secured by the Trust for a fencing project.
BRIDGE CITY’S BOLD VISION BECOMES REALITY
Construction of a landmark affordable housing project at Bridge City is due to start within weeks, marking another step toward realising the development’s bold vision. A joint venture between Tongaat Hulett and eThekwini Municipality, Bridge City is positioned as a mixed-use precinct able to cater to a broad range of constituents.
With 356 affordable apartment units to be offered from as little as R499 000, these residential units are crucial to helping the partnership realise its vision of providing quality, affordable urban homes in a new town centre replacing a previously underdeveloped strip. These units will be built by nationally renowned, JSE-listed; Calgro M3, which has purchased the land for development in conjunction with affordable home loan provider; Chartwell Group.
Located less than 20 kilometres north of Durban’s CBD, Bridge City is bordered by Phoenix, Inanda, Ntuzuma and KwaMashu, collectively accommodating over 600 000 people. These new affordable homes are therefore a further important piece of the Bridge City development puzzle, which includes the 13-hectare Bridge City Business Estate and a Town Centre consisting of commercial, retail, residential, state hospital and regional magistrate’s court sites. The opening of eThekwini’s Go!Durban Integrated Rapid Public Transport Network (IRPTN) public transport system and the installation of CCTV security throughout Bridge City by the end of the year, will make Bridge City a highly desirable commercial and residential node.
“We’re very excited about this development because it is the first delivery of affordable residential accommodation in Bridge City,” says Brian Ive, Development Executive at Tongaat Hulett Developments. “Bridge City was envisioned as a mixed-use Town Centre like the Umhlanga Ridge Town Centre development which includes high intensity, mixed-use sites in a town centre in which residents play an important part.” The construction of the IRPTN will provide future residents with direct access to the entire city via this world-class BRT (Bus Rapid Transport) system which also integrates with rail and traditional road public transport modes.
The affordable housing units comprise secure, quality apartments, most with two bedrooms, one bathroom and open-plan living areas. Standard finishes include granite kitchen tops, ceramic tiles, burglar bars, security gates and built-in bedroom cupboards in the main bedroom.
“The development will enable a number of families in the region, in particular first time homeowners, to bridge the housing affordability gap and step onto the home-ownership ladder,” comments Gregory Connellan, executive director of Chartwell Group. “Over the past few years there has been a dearth of good quality housing in the region, which has one of the highest household densities in eThekwini.
“Home ownership gives people the opportunity to live in a better environment and build up a capital base that provides a long-term source of financial security.”
Chartwell Group is introducing a number of unique and attractive features to qualifying buyers. These include 100% home loans with zero upfront deposits, no occupational rental charges and an accelerated two-week credit approval process. In addition, homeowners will pay one consolidated monthly bill that covers all home loan repayments, body corporate levies, insurances and municipal fees.
The construction of the apartments is the first foray into the eThekwini region for Calgro M3, an established property development company with a nationwide residential housing footprint. The group specialises in developing integrated and mixed-use projects that incorporate various types of fully subsidised, partially subsidised and affordable housing.
“By undertaking this project we will be participating in the highly acclaimed Bridge City Precinct development, and in so doing will contribute significantly to the advancement of the community in the area,” says Wayne Williams, Calgro M3’s group executive director.
Bridge City’s role as a source of affordable accommodation will be further enhanced in the medium term by the acquisition of five sites in the town centre by eThekwini Municipality. Ive explains that these sites will be used to create social and gap housing opportunities, which will be managed by the city’s chosen development partners.
“So over the next year to two, we will see much development taking place in Bridge City Town Centre with the delivery of good-quality residential units for sale to the market, and this is welcomed news!” he says.
DEVELOPMENT MOMENTUM BUILDS AT BRIDGE CITY
Development at Bridge City is gathering momentum in 2017, according to Brian Ive, a development executive at Tongaat Hulett Developments, which is driving the evolution of this ground breaking mixed use precinct to the north of Durban.
To date, 65 percent of the 53-hectare development area, has been sold to a mix of public and private sector investors, while 360 000m2 of bulk is still available for purchase in Bridge City. Ive is confident that the remainder of this development will be sold out within the next three years.
A number of new developments – including a petrol filling station (PFS)/ retail facility and a mixed-use development to the value of R220 million – are set to begin this month (March 2017). The Environmental Impact Assessment (EIA) for the first phase PFS is underway while the second phase of this mixed-use development, it is expected to begin construction towards the end of 2017.
He added that construction of the third phase of the combined medical and retail centre adjacent to the Bridge City shopping centre was already well underway and due for completion by the end of June 2017.
Construction of the Dr Pixley ka Isaka Seme Memorial Hospital, a 500-bed regional state facility, is proceeding well. Now that the structure is complete, contractors are focussing on finishing the interior of the building ahead of an envisaged opening in 2019.
At the same time, earthworks for the 150-bed private hospital that is also to be located at Bridge City have been completed. Work on the top structure is scheduled to commence this month (March 2017) and the hospital is expected to open at the end of 2018.
Ultimately, Bridge City is expected to attract upwards of R10 billion in investment once it has been completed. En-route, it is expected to create thousands of construction jobs whilst also facilitating a wide range of skills and enterprise development opportunities across a plethora of sectors.
“Our vision for Bridge City is one that combines a mix of public sector facilities, services and infrastructure with a wide range of private investment opportunities. At its heart, it will have a world class, inter-modal transport system that links the areas of Phoenix and Inanda, Ntuzuma and KwaMashu (INK) to the CBD’s of Durban, uMhlanga, Cornubia and Pinetown. This will become a bustling, mixed-use urban hub that offers attractive investment opportunities in a professionally managed, integrated and dynamic development node,” said Ive.
He added that the recent completion of the new half diamond interchange off the M25 that provides dedicated access to Bridge City for road users and later this year, for the R20 billion GO!Durban bus rapid transport network (BRT) which will mark another important milestone for the development of Bridge City.
Increased accessibility and good public transport make this a location of choice for logistics businesses and distribution centres as well as labour intensive businesses such as business call centres.
Bridge City is the second leg of the highly successful Effingham Development Joint Venture public private sector partnership between Tongaat Hulett and the eThekwini Municipality. The first leg, the Riverhorse Valley Business Estate, that was sold out in 2015, was highly successful for similar reasons. However, whereas this was primarily industrial and offices, Bridge City is a true mixed use development.
From its earliest days on the drawing board, it has included residential, retail, recreational, medical and commercial facilities as well as a 13-hectare business park that is likely to appeal to both established businesses and entrepreneurs.
Ive said that Bridge City was particularly attractive to businesses as all sites were fully serviced and ready for development, cutting through potential red tape and delays in other areas.
The INK (Inanda, Ntuzuma and Kwa Mashu) area has the largest residential concentration of about 800 000 people in the eThekwini region, ensuring that Bridge City is likely to have one of the largest impacts on improving the livelihoods of residents and boosting the metro economy.
“Bridge City completely redefines how people will live, work and play in formerly neglected and marginalised townships. Through the creation of job opportunities, residential accommodation and lifestyle choices, Bridge City will have a major economic impact on both the immediate INK area and its surrounds,” he said.
A deal about to be concluded will deliver 348 affordable housing units and will play a key role in attracting new entrants into the retail property development space. Through the creation of a dynamic mixed use precinct, the reduction of Management Association levies for residential use and reductions in transfer duties by Government for entry level buyers, he said that more property owners were also likely to enter the as yet under invested township real estate market.
Ive said that the eThekwini Municipality was finalising the investment of approximately R84.5 million in six sites at Bridge City. Five of these are in the town centre. Of these, three are earmarked for Social housing and two for GAP (affordable) housing.
The sixth site purchased by the municipality – located within the Business Estate precinct – will be developed into a business incubator.
Ive pointed out that improved commuter transport via the GO!Durban BRT is also expected to boost retail development. Bridge City is likely to be the second busiest commuter exchange in the Durban area and the GO!Durban terminal is expected to accommodate in excess of 100 000 daily commuters on completion.
He noted that the Bridge City shopping centre, which was completed in 2009, is already regarded as a major retail hub and has extended its pool of shoppers from the immediate vicinity to surrounding areas. Shopper numbers increased during 2016 and the mall currently has a three percent vacancy rate which is far lower than average.
KWAZULU-NATAL TO GET ANOTHER RETAIL, LOGISTICS PARK
A multimillion-rand logistics and retail park being developed by M&F Giuricich Developments and Fortress Property Fund, in KwaZulu-Natal, will be built this year.
The logistics park, located between the King Shaka International Airport and Durban, will form part of the N2 Business Estate, located on the northern edge of the Cornubia development.
Once completed, the total estate could create 2 400 permanent jobs and generate R45-million a year in rates income for the city.
“A logistics park of this size and nature is a perfect fit for the vision that we had of establishing the Cornubia N2 Business Estate as a prime commercial location,” said Tongaat Hulett Developments director Karen Petersen, noting that it met the criteria needed to attract tenants with specific needs, adding considerably to establishing the business estate as a prime commercial site.
M&F Giuricich Developments cofounder Florian Giuricich noted that, of the 200 000 m2 of space available, half would be allocated for logistics warehousing facilities and the remainder for retail.
“We believe the opportunity exists for this facility to meet the needs of logistics companies or major brands with significant warehousing needs. There is very little infrastructure of this nature in existence along the N2 that exploits proximity to the airport and Dube TradePort, as well as access to Durban, so we are expecting ready interest in these facilities,” he said.
Further, Giuricich pointed out that the retail component of the development would be equally attractive given the visibility from the highway, noting that there was considerable interest from large retail destination-based tenants who enjoy the prominent exposure and easy access to site from the N2 motorway.
This included some international retail tenants that are entering the South African market. Access provided by the flyover bridge network that links to the Umhlanga town centre and the amenities being developed within Cornubia itself add to the site’s retail suitability.
Giuricich noted the logistics park would be suitable for companies with larger logistics and distribution needs as the warehousing facilities will start at 10 000 m2 each. The developer would consider accommodating one major tenant with the requirement for premises larger than this minimum size. The platform design caters for this flexibility
Construction is expected to be completed in 2018.
End.Source: http://www.engineeringnews.co.za/article/kwazulu-natal-to-get-another-retail-logistics-park-2017-01-10
A LOOK AT DURBAN’S R1.8 BILLION CORNUBIA SHOPPING MALL
Cornubia Shopping Mall, a new retail development located in the north coastal corridor of Durban, is on track to open its doors in September next year.
The R1.8 billion mall is one of Investec Property latest development, rising from the old cane fields alongside the M41 at Flanders Road.
With one eye on the staff in the Cornubia Town Centre and another on the neighbouring residential areas – Mount Edgecombe to the south west, Phoenix to the west and the Cornubia residential precinct to the north – the Cornubia Shopping Mall first phase of 65,999m2 is set to provide a retail solution for all needs.
Although mixed use, the major portion of the Cornubia development will be residential, with 25,000 housing units being developed. Cornubia is a national pilot project of the Breaking New Ground policy launched in 2008.
Construction began in March 2016 and the mall is roughly half the size of the Gateway Theatre of Shopping, boasting two supermarkets and 1,630 on-grade parking bays and 1,608 basement.
The mall is located near the Umhlanga/Mount Edgecombe interchange and is adjacent to the Cornubia Town Centre.
“This forms part of a holistic spatial development,” explains Karen Petersen, Development Director of Tongaat Hulett Developments, which has made the land available for the project. “The shopping centre is one of the key amenities that will be provided to the 1,200 hectare mixed-use development which stretches from Umhlanga towards the King Shaka Airport.
Investec Property Joint Head Darryl Mayers says the centre is 80% let, with key national retailers as anchor tenants.
“We are delighted to be able to announce that the major food retailers Checkers, Pick ‘n Pay and Woolworths will have a presence in the centre as well as key clothing retailers, including Edgars and Truworths,” said Mayers.
Other tenants include Virgin Active Gym, Cycle Lab, Bounce, Nu Metro, Outdoor Warehouse, Dis-Chem, Clicks and Bakos Brothers.
“At the centre’s heart, there will be an open air ‘town square’, comprising al-fresco style restaurants, tapas bars, coffee houses and fast food outlets as well as double-level concept stores. In addition, the mall will offer a mix of fashion, lifestyle and sports outlets, all integrated into an outdoor, family-orientated shopping destination,” he said.
The on-going shopping mall developments and others that are still in the planning phase in South Africa, is increasingly driving concerns about an oversaturated retail property market despite consumer spending being in the doldrums.
The question, however, is whether SA can support another mall. Many consumers are cash strapped, and already SA has the sixth highest number of shopping centres in the world — almost 2,000 — and floor space covering 23m m².
“We do not see this as competing with Gateway,” adds Petersen. “We envisage the two centres being complementary to each other, creating a massive super-node between them. In the same way, we see the Umhlanga Town Centre and the Cornubia Town Centre as having a paired utility. Access between the two will be greatly enhanced by the bridge currently under construction over the N2 linking Cornubia Boulevard with Umhlanga Ridge Boulevard and forming part of the Go!Durban integrated rapid public transport network.”
The importance of Cornubia can be summed up in the words of Human Settlements Minister Lindiwe Sisulu when visiting Durban in 2015: “This project is very close to my heart, it demonstrates what we as a nation can achieve when we partner with business and investors.”
WORK IS UNDER WAY AT NEW SIBAYA PRECINCT ON KZN NORTH COAST
With the installation of services now under way at the Sibaya precinct, the time frame for the development at the new Signature Sibaya estate is on track.
Services are due to commence on schedule in the new year at this residential development next to Umdloti on the KwaZulu-Natal North Coast. The heightened levels of activity and hype surrounding this much anticipated node have resulted in over 85 percent sell-out, at a time when the property market as a whole has been far from buoyant.
A new, wide, landscaped boulevard with direct access to Signature Sibaya is in the process of being built off the existing traffic circle on the M4 into the Sibaya development, which will eventually link up with the M27 to the north. Construction vehicles are on-site daily, as demand continues to grow.
“Most of the plots at Signature were sold before the official launch, with vacant sites selling from R4.2 million to R10.5m”, says Carol Reynolds, Pam Golding Properties area manager for Durban Coastal.
“The new owners are expected to invest a further R10m to R20m in building their luxury dream homes.”
She says the north Durban coastline from Durban North to uMhlanga, Sibaya and Ballito, is one of the most sought after residential nodes in Work is under way at new Sibaya precinct on KZN North Coast KwaZulu-Natal.
“With the recent release of parcels of land in the eagerly anticipated Sibaya precinct, the area is buzzing with local and international investors seeking a piece of this acclaimed pie.
“The desirability of the area and the general trend towards secure living have made estates in this coastal node even more attractive. Developers have sought to meet this demand by offering a variety of security estates to cater for a range of budgets.”
Signature Sibaya consists of 45 sea-facing stands, ranging in size from 1 000m² to 2 000m². Two of the key drivers of Signature are the fact that it is pet friendly, and residents will have direct access to the beach along wooden walkways.
“The Sibaya Coastal Precinct will be developed in seven phases starting with nodes one and five, nestled between the M4 and the coastline and offering residential, leisure and limited retail to support local residents. According to the official record of decision, the mix of development rights for these nodes comprises over 2 300 residential units and over 100 000m² of commercial space together with hotel and resort uses.”
For details, call 031 561 5300 or email carol.reynoldsg pamgolding.co.za
ECONOMIC DEVELOPMENT AND JOB CREATION ON ITS WAY IN BRIDGE CITY
North of Durban, an entirely new town is currently under construction. Bridge City is going to be an “all-in-one”, Brian Ive, development executive at Tongaat Hulett Developments said.
The new town is the latest joint project of the eThekwini municipality and Tongaat Hulett Developments. Seventy percent of the mixed use residential, business and commercial site area has already been sold. “The site is very large,” Ive said, “so we only expect all the plots to be sold by 2019”. He added that current state of the economy has also slowed this process.
The Bridge City development aims to boost economic development and create hundreds more job opportunities. Some of the features that will service residents in the new town and surrounding areas will be:
- A government hospital
- A business park
- Small businesses factories and shops
- A petrol station
NJP Steel distribution centre that is expected to open early next year Shunnon Tulsiram, head of the municipality’s Economic Development and Investment Production Unit said businesses will be located in areas that will provide business opportunities. Small businesses that plan to open will vary from IT companies to manufacturing businesses and small start-ups.
Transport routes will be easily accessible from all areas of Bridge City. The new integrated system aims to link nine transport corridors across various modes of transport. The intermodal system is also expected to serve approximately 1 000 000 commuters per day once fully developed in 2027.
Currently, a “big pro” for people commuting into the area is the train that feeds into an underground station in the town’s local shopping centre.
The development is expected to uplift the surrounding areas of Kwamashu, Inanda and Ntuzuma that have been earmarked for economic development and job creation initiatives.
CORNUBIA ANALYSIS SHOWS CONSIDERABLE POSITIVE IMPACT
A recent analysis conducted by KPMG to determine the economic and financial viability of the Cornubia development north of Durban shows that it holds unquestionable benefit to the city, its people and the economy.
The proposed mixed-use development has been earmarked as a strategic project that will have a significant impact on the social, economic and industrial prospects of the region. These prospects have now been quantified following the cost benefit and macroeconomic impact analysis conducted by the accounting and auditing firm.
Appointed by the eThekwini Municipality, KPMG was tasked with determining if the project represents a sound investment or decision, as well as providing a basis for comparing projects on the basis of their costs relative to their benefits.
The Cornubia analysis indicates an overwhelmingly positive outcome from the development for the eThekwini Municipality, local communities, and the regional and provincial economies.
“As important as the economic and financial considerations are, the Cornubia development is regarded as a catalytic intervention undertaken jointly by the eThekwini Municipality and Tongaat Hulett Developments to establish the first fully integrated human settlement in the country,” states Denny Thaver, Project Manager at eThekwini Municipality.
The development has a large impact on job creation in eThekwini during both the construction and operational phases. In the long term, nearly 285 000 new employment opportunities will be created due to the commercial activities associated with Cornubia, representing a healthy 12% of total employment in the province. This will be achieved through 39 000 direct jobs, 144 000 indirect jobs, and an additional 45 000 jobs in the rest of the province, as well as 54 000 jobs resulting from the economic impact of salaries and wages paid to employees at the development.
These jobs exclude the 250 000 employment opportunities expected to be created during the construction phase of Cornubia, representing 20% of the total employment in eThekwini (over a 20-year period). This phase of the project will pump as much as R700 million into lower income households through job creation opportunities, which nearly doubles to R1,3 billion in income for these households during the operational phase of the development.
The construction phase alone will also contribute roughly R8,5 billion to the economy of eThekwini, representing 4% of the local economy’s GDP. Once operational, Cornubia will contribute approximately R3,3 billion directly to the local economy, with the provincial GDP being boosted by an estimated R1,2 billion.
“Over the 20-year period the Cornubia project will not only change the economic landscape of the city, but will deliver significant socio-economic benefits to the region, province and national economy,” comments Karen Petersen, Development Director at Tongaat Hulett Developments. “The target, as set out in the National Development Plan is to increase South Africa’s economic growth to 5,4% on average in real terms by 2030. The total impact of the Cornubia development will contribute about 10% (i.e. R3,3 billion) to eThekwini’s GDP, and 5% to the provincial economy’s GDP of R22,9 billion (with Tongaat Hulett Developments creating the largest impact by contributing R9,4 billion to both the local and provincial economy’s GDPs). Nationally, the Cornubia development will contribute 2% (R50,4 billion) to the South African GDP.”
The development will contribute to poverty alleviation through its impact on household income. The social accounting matrix indicated that through downstream generation of income, households in the eThekwini municipality will receive about R8,9billion, R1,4billion of which will be received by lower income households alone.
The analysis by KPMG also shows that the eThekwini Municipality’s investment in this 1 200ha development is not only sound, but is a financially prudent initiative that will change the face of the region.
This conclusion is drawn from the cost-benefit analysis, which shows that the municipality alone stands to benefit to the tune of more than R4 billion as a result of the Cornubia development. The regional council’s internal rate of return – which measures the profitability of an investment – is 31% (three times the discount rate of 11%), which demonstrates the strong financial justification for undertaking the development.
“Apart from the direct economic stimulus provided by the Cornubia development, the social impact from the construction of affordable, subsidised and public sector housing units will go a long way to improving the quality of living for local residents. Coupled with the job opportunities that are being created, the overall impact on the prospects and attractiveness of eThekwini will be significantly improved,” concludes Denny Thaver.
