* Vulindlela Accommodation & Conference Centre …€¦ · * Vulindlela Accommodation & Conference...

* Vulindlela Accommodation & Conference Centre

* Coega Corporate Travel

TOP PERFORMING

PARASTATAL

FOR 2013/14B-BBEE

LEVEL

ONE

FIRST

SA IDZ

DOUBLE DIGIT

INVESTMENTSwith

JOB CREATION

AWARD

FOR 2013/14

PRO

FILE

20

14/1

5

VISIONTo be the leading catalyst for socio-economic growth.

MISSIONTo provide a competitive investment location supported by value-added

business services that ultimately enable socio-economic development.

VALUESIntegrity • Innovation • Partnership • Service Excellence • Sustainability

NELSON MANDELA BAY: South African flag waving at the Donkin Reserve, Port Elizabeth

EAStErN cApE prOVINcE

Fast Facts

Capital: Bhisho

Major Cities: Port Elizabeth / Nelson Mandela Bay

IDZs: Coega IDZ (part of Nelson Mandela

Bay Metro), East London IDZ

Population: 6.6 million (2013 est.)

Share of SA Population: 12.5%

Area: 169 056 km2

Share of Total SA Area: 13.9%

Population Density: 39 people per km2

GDP (constant 2005 prices): $14.62-billion (2013 est.)

Share of Total SA GDP: 7.1% (2013 est.)

The only province with three ports: Port of Port Elizabeth, Port of Ngqura and Port of East London.

For more information contact Eastern Cape Parks & Tourism Agency on +27 (0)43 705 4400 or [email protected]

rEpUbLIc Of SOUtH AfrIcA

Fast Facts

Official Name: Republic of South Africa

Capital: Tswane (Pretoria)

Total Land Area: 1 221 037 km2 (471 443 square miles)

Total Coastline: 2 798 kilometres (1 739 miles)

Population: 54 million (mid 2014)

GDP: $206.57 billion (2013 est.)

Currency: The Rand (ZAR - measured against US$)

Official Languages: Afrikaans, English, isiNdebele, isiXhosa, isiZulu, Sepedi, Sesotho, Setswana, siSwati, Tshivenda and Xitsonga.

Provinces: Eastern Cape, Free State, Gauteng, KwaZulu-Natal, Limpopo, Mpumalanga, Northern Cape, North West and Western Cape.

For more information contact Brand South Africa on +27 (0)11 483-0122 or [email protected]

Inspiring new ways

Home of the Legends

Table Mountain, Cape Town Sports and Recreation

Citrus Region

Addo Elephant Park

Johannesburg skyline

Union Building, Pretoria

02 03

cONtENtSOverview

Highlights

coega Development corporation (cDc)

Global competitiveness

Investment Attraction

Investors

Nelson Mandela bay Logistics park (NMbLp)

business process Outsourcing (bpO) park

Sector Overview

IDZ Support Services

commercial Services

project Management Services

Small, Micro and Medium Enterprises (SMME)

corporate Social Investment (cSI)

company Information

10

14

2 0

2 2

2 6

32

34

76

80

85

38

42

58

64

72

NELSON MANDELA bAY

• Located East of Cape Town, midway between Cape Town and Durban, and South-East of Johannesburg.• Offers low living costs to expatriates.• Incorporates Port Elizabeth, Uitenhage and Despatch.• Population of approximately 1.2 million people.• South Africa’s fifth largest city.• GDP of $4.53-billion (2013 est.). NMB contribute 31% to the provincial GDP.• Home to the Coega Industrial Development Zone.• Export and manufacturing hub. Home of the South African Motor Industry. The area is developing its potential in such areas as chemicals and petrochemicals, agriculture, agro processing, capital goods and in green industries.• Sectors Contribution to GDP of NMB: Agriculture, Forestry, Hunting & Fishing (0,53%); Mining & Quarrying (0,11%); Manufacturing (24,2%); Electricity, Gas & Water Supply (0,99%); Construction (2,69%); Wholesale & Retail Trade (12,17%); Transport, Storage & Communication (11,7%); Financial, Insurance, Real Estate & Business Services (23,67%); Community, Social & Personal Services (8,56%); and General Government (15,37%).• A friendly, homely atmosphere makes this the ideal city for a family orientated lifestyle.

Nelson Mandela Bay offers top educational facilities and tourist attractions in and around the area.

For more information contact the NMB Tourism on +27 (0)41 582 2575 or [email protected]

Named after the Legend - Nelson Rolihlahla Mandela

Port of Ngqura

NMB Lifestyle

04 05

MOtHEr brAND

MAStEr brAND

brAND VALUES & pILLArS

Positioning

brand Values• Innovation• Integrity• Partnership• Service Excellence• Sustainability

The Coega brand strategy is based on a monolothic brand approach. The mother brand is Coega and pay-off line is Right Place, Right Time, Right Choice. There are three main brands, namely: IDZ; Commercial Services; and Project Management Services (External Programmes). The Coega sub-brands are as follows: NMLP; Vulindlela Accommodation & Conference Centre; Corporate Travel; Human Capital Solutions; Business Solutions; Telecoms; Infrastructure Development; and Facilities Management.

brand pillars• Transparent Practises• Customised Solutions• Efficiency through Expertise• Sustainable Socio- Economic Development

Right Place, Right Time, Right Choice

MAIN brANDSIndustrial Development Zone Commercial Services Project Management Services

SUb-brANDS

brand personality• Progressive• Trustworthy• Intelligent

06 07

41km of roads

37km of stormwater

40km of sewer with 5 pump stations

38km potable water

178km service ducts (telecoms)

184km electrical cable

1138 street lights

83x MV electrical substations

5x 132kv main substations

1 peaking power plant

BIGGEST IDZ IN SA AT 11 500HA

56 000 JOBS CREATED SINCE INCEPTION IN 1999

67 945 PEOPLE TRAINED

OVER 28 OPERATIONAL INVESTORS

14 ZONES BuILT ALONG CLuSTER MODEL

6 443HA Of PRIME LETTABLE INDuSTRIAL SPACE

wIThIN 15 MINUTES Of ROAD, RAIL, AIR & SEA

ACCESS TO 3 PORTS (PE, NGQuRA, EAST LONDON)

20 MINUTE DRIVE TO PE CBD

DIRECT LINKAGE wITh DEEPwATER PORT Of NGQuRA

huGE LOGISTICS ZONE CONNECTED SEAMLESSLY wITh PORT

NEIGhBOuRS wITh fASTEST GROwING PORT IN SOuTh AfRICA

30 MINUTES DRIVE TO BIGGEST wIND ENERGY GENERATING fARM

AuTO, RENEwABLES, BPO & AGRO-PROCESSING huB

327SMILING FACES AT CDC READY TO MAKE YOUR INVESTMENT DREAMS A REALITY

COEGA INDUSTRIAL DEVELOPMENT ZONE AND DEEP WATER PORTOpErAtING SA’S fIrSt & LEADING INDUStrIAL DEVELOpMENt ZONE - In Nelson Mandela bay Since 1999

COEGA IDZ INFRASTRUCTURE FAST FACTS

GLOBAL FOOTPRINT

INDIA & SE ASIA

ServicesMetals AutomotiveChemicalsEnergy

EU

PetrochemicalsMetalsEnergy

EU

AutomotiveAgro-processingChemicalsMetalsEnergy

EU

AutomotiveMetalsEnergy

EU

AutomotiveMetalsEnergy

SADc

Export-orientedManufacturingServicesHeavy Industry

LogisticsAgro-processingChemicals & Allied Industries

AUStrALASIA

AutomotiveGeneral ManufacturingCapitalEquipment

RNRFDIGITAL LOGISTICS

PE COLD STORAGE (PTY) LTD

USA/ cANADA/ MEXIcO

AutomotiveChemicalsMetals

fAr EASt

ElectrotechnicalAutomotiveMetalsEquipment & Machinery

08 09

cDc OVErVIEWThe Coega Development Corporation (CDC) is a government-owned entity mandated to develop and operate the Coega Industrial Development Zone (IDZ), adjacent to the modern deep-water Port of Ngqura, which is owned by the Transnet National Ports Authority (TNPA) in Nelson Mandela Bay (Port Elizabeth), South Africa.

Coega was established in July 1999, formalised and rezoned between 1999 and 2002, and built between 2002 and 2005. Dynamic Commodities became the first investor taking occupation in Zone 3 of the Coega IDZ in 2007.

The Coega IDZ is South Africa’s premier location for new industrial investments. The CDC is the licensed developer and operator of the IDZ’s 11 500HA of land and created the necessary infrastructure and facilities to offer potential investors 6 443HA of prime lettable industrial space. Coega also offers total solutions for construction, spatial development and Small, Micro and Medium Enterprise (SMME) development within the Coega IDZ’s Core Development Area (CDA).

Coega is wholly owned by the South African government. The Department of Trade and Industry is the main shareholder and executive authority, with ordinary shares owned by the Eastern Cape Provincial Government through the Eastern Cape Development Corporation.

JAN

/ FE

B 2

013

NELSON MANDELA BAY MUNICIPALITY | COMMUNITY MAGAZINEVOLUME 4: EDITION 11

FREE - SPECIAL EDITION

THE BEAT AT AFRICA’S FEET

AFCON 2013: EYETHU! BE PART OF IT

WINTICKETS

TO AFCONINSIDE!

10 11

The Coega IDZ is specifically designed along the cluster model, linking related industries and their supply chains in close proximity to one another to maximise efficiency and minimise turnaround times. The Coega IDZ boasts the following clusters:• Commercial and logistics• Automotive and auto components• Light industry• Training/academic• Metals and metallurgy• Chemicals• Energy• Agro-processing (aquaculture, food packaging and food processing)• Mari-culture and coastal• Advanced Manufacturing Aeronautical & Aerospace cluster• Petrochemical

The Coega IDZ’s close proximity to and integration with the Port of Ngqura makes it Africa’s foremost hotspot for attracting foreign direct investment and expanding the reach of domestic manufacturers. The Coega IDZ’s Strategic Development Framework is focused on infrastructure and facilities development for the 6500 hectare CDA.

In 2008 Coega diversified its product offering to include the 235 hectare automotive supplier park Nelson Mandela Bay Logistics Park (NMBLP), as well as a range of consultancy services. Coega’s company structure is divided into three main areas of interest: • The Coega IDZ;• Commercial services – such as resource services through Coega Human Capital Solutions, travel related solutions through Coega Corporate Travel and strategy development services through Coega Strategy Solutions; and Coega Telecoms; and• Project management services, where Coega acts as implementing agent, for a range of private and public sector clients on infrastructure projects.

The Coega IDZ continues to draw international interest and remains South Africa’s most successful IDZ. In the 15 years since inception, the Coega IDZ has grown to become one of the biggest drivers of job creation and the Eastern Cape economy thanks to both local and foreign direct investment.

Currently, the Coega IDZ contributes an estimated 5.9% to the provincial gross domestic product (GDP) and 0.5% to the national GDP, a figure the CDC will increase in the near future as our traction both within the IDZ and province grows with investment and projects.

SHIPPING ROUTES

12 13

The Coega Development Corporation became South Africa’s first declared Industrial Development Zone (IDZ) in December 2001. The organisation builds on its business achievements annually, exceeding investment attraction targets year-on-year, including major foreign direct investors. The highlights, outlined below, have made the Coega IDZ Africa’s world-class investment destination and contributed to socio-economic development in South Africa.

14 15

INVESTOR RELATIONS: The CDC’s Donevin Lesch with the Dedisa team as critical parts arrive for the Dedisa Peaking Power Plant.18 19

The CDC is a knowledge-based professional service organisation with its competitive advantage dependent on the dynamic capabilities of its human capital. The CDC boasts one of the largest concentrations of highly qualified and experienced staff in the Eastern Cape Province and arguably ranks favourably with the best of the best in its class nationally. We are using our organisational expertise to drive socio-economic development in the province and across South Africa. The CDC’s staff includes a range of engineering professionals, project managers, business managers, lawyers and accountants. The Coega Project was founded by and continues to be managed by these specialists. The wealth of in-house skills, and an organisational decision to diversify the CDC’s income streams, has resulted in Coega moving to manage major infrastructure projects on behalf of the Departments of Roads and Public Works, Education and Health in the Eastern Cape and the Departments of Education and Social Development in KwaZulu-Natal. The CDC is able to put its specialist skills – and experience in establishing the IDZ – into action across the country to ensure that critical infrastructure is delivered to communities.

Moreover, the CDC is committed to developing and retaining top talent in the province and country. It is focused on expanding the human capital base of the province to meet the growing needs of industrial and commercial investors. This strategy is based on a need to manage the complex restructuring of the industrial future of the province and country. As at 31st March 2014, the CDC’s staff complement was 327.

Professional Registration in Engeneering

The Coega Development Corporation (Pty) Ltd (CDC) is the operator of the Coega IDZ in Nelson Mandela Bay, South Africa. To date, the CDC has delivered on its mandate to provide socio-economic development for the Eastern Cape.

Area of Certification

No. Certified Total % Staff

Complement

ECSA 10

144 34%

SACQSP 5SACPCMP 6PRINCE 2 105MSP 5GIS 3PMP 3PMI 7

20 21

GLObAL cOMpEtItIVENESS

The Coega IDZ, located close to the bustling industrial city of Nelson Mandela Bay, is South Africa’s foremost investment hotspot for industries with a global perspective. Developed and managed by the CDC, this pioneering multi-billion Rand project aims to drive local and foreign direct investments in export-oriented industries, positioning South Africa as the hub for Southern African trade.

The Coega IDZ, while offering global competitiveness through world-class infrastructure, tax incentives, rebates and a duty-free zone, is purpose-built for manufacturing including beneficiation of export goods, investment and local socio-economic growth – skills development and job creation.

Adjoining the largest IDZ in the Southern Hemisphere, is the Port of Ngqura – a modern multi-user deep-water harbour developed by the National Ports Authority as a gateway to global markets. The Coega IDZ and the deep-water Port of Ngqura are catalysts for investment and local development.

The Coega IDZ has world-class and purpose-built infrastructure to suit every investor’s needs. When the IDZ was built it was established on the plug-and-play model to cut out long construction periods and connectivity challenges. Throughout the IDZ, there are purpose built service points to which investors can easily connect, giving tenants prepared land that is linked to roads, electricity, sewerage, water supplies and telecommunications. An additional CDC service offering is total solutions for construction, spatial development and SMME development within the Coega IDZ’s CDA. This approach enables investors to conveniently establish their plants without worrying about major services’ installation.

The Coega IDZ is demarcated into 14 zones and is specifically designed along the cluster model linking related industries and their supply chains in close proximity to one another to maximise efficiency and minimise turnaround times.

The Coega IDZ already offers a wide array of services and is South Africa’s premier investment destination. This is built on the IDZ offering, which is uniquely geared to ensure competitiveness and quality – not only in terms of services, but also infrastructure and spatial planning to enhance IDZ investors’ competitiveness and supply chain linkages and integration, while lowering the costs of doing business and maximizing incentive support.

Port of Ngqura, Eastern Cape22 23

ZONE 1NCommercial Cluster – Coega Business Centre

ZONE 1SLogistics Cluster – Digistics, Famous Brands, APM Terminals, PE Cold Storage, General Motors South Africa, Vector Logistics

ZONE 2Automotive Cluster – FAW, UTi

ZONE 3General Industries Cluster – Afrox, Powerway, Air Products, Dynamic Commodities, Coega Dairy, Coega Cheese, DCD Wind Tower

ZONE 4Training & Academic Cluster – Human Capital Solutions, BPO Park: Discovery

ZONE 5Metallurgical Cluster – Bosun Brick

ZONE 6Ferrous Metals Cluster – Agni Steels SA, Electrawinds

ZONE 7Chemicals Cluster – Cerebos

ZONE 8Port Area

ZONE 9Materials Handling Cluster

ZONE 10Mariculture & Aquaculture Cluster

ZONE 11Petrochemical Cluster

ZONE 12Advanced Manufacturing Cluster

ZONE 13Energy Cluster – Dedisa

ZONE 14Advanced Manufacturing: Aeronautical & Aerospace Cluster

NMbLpNelson Mandela Bay Logistics Park – MSC, Grupo Antolin, Benteler, Inergy, Rehau, Faurecia, Hella

AREA PROFILE

12

14

1113

6

95

3

4

2

1s

1n8

10

7

B-BBEE LEVEL 1 CONTRIBuTORISO 9001 ISO 14001 OhSAS 18001

B-BBEE LEVEL 1 CONTRIBuTORISO 9001 ISO 14001 OhSAS 18001

Coega - Zone Structure

Coega Development Corporation Head Office in Zone 1, overlooking the Port of Ngqura24 25

INVEStMENt AttrActION

Coega focuses on offering the best solutions to potential investors and assists every step of the way to ensure

projects move from concept to completion. Coega has successfully attracted a healthy mix of both local

and international investors; and moved from the initial anchor tenant approach to focusing on strategically

attracting a range of medium, large and mega projects to diversify and strengthen the industrial base.

The achievements and successes of the Coega IDZ have proven that a mixed approach to attracting investors

is working – in the past two years. That said, however, a number of catalytic big projects are on the horizon and

include GDF Suez- Dedisa Peaking Power Plant (SA), PetroSA’s Project Mthombo and Nuclear 1 at Thyspunt

near Jeffrey’s Bay, which will drive the attractiveness of the Coega IDZ as an investment destination and

therefore future investment trends.

Global competitiveness through incentivesTax incentives, rebates and customs controlled areas.

Built for businessBusiness location purpose-built for manufacturing including beneficiation of export goods, investment and local socio-economic growth - skills development and job creation.

Ease of doing businessSouth Africa is a low-cost and top location for ease of doing business. The general ease of doing business is enhanced by the IDZ advantages and incentives.

Safe investmentSouth Africa is among the top ten globally for securing investor protection and sound fiscal governance. South Africa has a stable economy and market-oriented business culture.

top reasons to invest in coega IDZ

World-class infrastructureStrategic location at the crossroads of east-west trade routes globally and within Africa; presence of world’s major shipping and logistics companies; adjacent to a modern, deep-water port with container, bulk and break-bulk terminals.

Quick availabilityAvailability of land customised for heavy, medium and light industries, serviced sites and fast-track construction of factories, warehouses and office complexes on 11,500 hectares of land.

Special Customs Controlled Area (CCA)Zone 1 and 2 have been designed as a CCA to comply with SARS requirements. The CCA status will benefit investors like FAW in the automotive sector.

26 27

The Coega IDZ is inherently an attractive place for investors wanting to establish operations in South Africa. The IDZ offers key features such as:

• Clustering for synergy and supply chain integration. The Back of the Port has been clustered into the following industries: – Maritime – Freight solutions – Abnormal Load Storage Area – Import Lay Down Area – General Logistics Hubs – Commercial Building • Facilitation of access to government incentives (local, provincial and national). The suite of incentives includes and is not limited to one-time and/or recurring grants for: – Skills development – Export marketing (new market development) – Job creation (the national and provincial grants can

be accessed concurrently) – Foreign investment (compensated for the qualifying costs of moving new machinery and equipment [excluding vehicles] from abroad) – Investing/re-investing in productive assets – Black business development • Customized solutions for investors e.g. serviced sites, fit-for purpose buildings • The IDZ is served by two ports, and characterised by close distance to the deep water Port of Ngqura, which is in Zone 1 of the Coega IDZ. The Port of Port Elizabeth is 20kms away from the IDZ• Facilities for skills development (with personnel to provide customised solutions)• Custom-controlled areas• Environmental assistance (where applicable)• Advanced infrastructure• Plug and play approach• Marketing and other value-added services• ICT services base infrastructure: infrastructure which

allows for the connectivity of voice /data/ internet and video services up to the tenant premise edge. These services are described in Level One Provision of shared broadband Internet connectivity by Coega Communication. Primary (disk) and Secondary (backup) file based storage provision.• Support with Safety, Health, Environment and Quality services, for example EIA process.

drawing number

140813_Zone1_Planning.mxd

revision no.

0

drawing title

Zone 1 Planning Framework Proposal

Coega Business CentreCnr Alcyon road & Zibuko streetZone 1, Coega IDZPort Elizabeth, 6100

scale

Tel: 041-4030471Email: [email protected]

serviceprovider

client1:12 500

0 125 250 375 50062.5Meters

drawn by date referenceF Sam 2014/08/13 CDCGIS02/GIS/COEGA/140813_

Zone1_Planning.mxd

projectCOEGA

INDUSTRIAL DEVELOPMENT ZONE

NOTES

1) The Zone 1 proposal aligns to theTransnet PDFP and must be read with theBack of Port document.

2) The 19Ha short-term abnormal laydownarea is reflected.

3) A shared facility area was previouslydesigned and is superimposed to illustratefreight solution potential within the Free TradeZone.

4) Land south of Alcyon Road has beenidentified to be registered as a Free TradeZone.

5) An area for Light Manufacturing SharedFacilities has been identified with N2frontage.

checked by

Zone 5

Zone 1

Zone 2

Zone 4

Zone 3

Overview

0 1 500 3 000 4 500750Meters

Ü

Coega IDZZone 1Logistics Cluster

LegendAbnormal Laydown Area

Back of Port Concept

Depot & Weighbridge

Freight Solutions

Import Laydown Area

Light Manufacturing Shared Facility

Maritime Industries

Offices/ Commercial

Truck Staging/ Intermodal

Coega Tenants

Serviceable Sites

Road

Zone Boundaries

ID Logistics

UTI

Vector Logstics

Famous Brands

APM Terminals

GMSA

PE Cold Storage

CDC

Maritime Industries14Ha

Truck Staging/ Intermodal29.3Ha

Maritime Industries19.9Ha



Maritime Industries6.23Ha

Freight Solutions 45.26Ha

Import Laydown Area29.84Ha

Offices/ Commercial 38.95Ha

Freight Solutions3.77Ha

Freight Solutions8.5Ha

Digistics

Offices/ Commercial6.4HaLight Manufacturing

Shared Facilities15.9Ha

Coega Business CentreCnr Alcyon road & Zibuko streetZone 1, Coega IDZPort Elizabeth, 6100Tel: 041- 4030400

Port of Ngqura

Back of the Port Clusters

28 29

President Jacob Zuma, signed the Special Economic Zones (SEZ) Act of 2014 into legislation as one of the first acts of his second term. In terms of Section 24 of the Act, Coega remains an IDZ under the SEZ Bill. The Act provides for the designation of the following types of SEZs:

Free Ports: Duty free areas adjacent to a port of entry where imported goods may be unloaded for value-adding activities, repackaging, storage and subsequent re-export, subject to special customs procedures.

Free Trade Zones: A duty free area offering storage and distribution facilities for value-adding activities within the Special Economic Zone.

Industrial Development Zone: A purpose built industrial estate that leverages domestic and foreign fixed direct investment in value-added and export-oriented manufacturing industries and services.

Sector Development/Specialised Zones: A zone focused on the development of a specific sector or industry

SpEcIAL EcONOMIc ZONES Act through the facilitation of general or specific industrial infrastructure, incentives, technical and business services primarily for the export market.

NEW investor incentives and benefits from the Special Economic Zone (SEZ) Act 2014 in South Africa will attract further domestic and foreign direct investment to South African industrial and special economic zones, including the Coega IDZ in Nelson Mandela Bay.

SEZ Act Provides Greater Incentives

The Special Economic Zone (SEZ) Act of 2014 is uniquely placed to help the CDC with its mission to attract investment. The CDC’s belief is that the SEZ Act – and incumbent incentives attached to it – is a game changer for foreign and domestic investors with their eyes on South Africa.

The SEZ Act has introduced new tax benefits, a reduction of red tape and labour productivity-enhancing mechanisms to investors.

The tax benefits will help Coega and other IDZs to become more globally competitive and attractive for foreign investors.

This includes a 15% corporate tax, a building tax allowance, employment tax incentives, a customs controlled area, duty free and with VAT exception, and accelerated 12i tax allowances.

Government is serious about cutting red tape and eradicating bureaucracy, which often accompany approvals and applications of investment deals in

developing countries. Prolonged administrative processes have been a major barrier for trade and cross-border investments and often steered investment away from South Africa.

The new OSS delivery model has already introduced faster access to permits, licenses, and informational requirements. It has eliminated administrative processes and approvals, and provides ample after-care to existing investors.

Tax benefits and removal of red tape will only complement the existing value propositions of the Coega IDZ, which has attracted investments from transnational firms in automotive, logistics, chemicals, manufacturing and renewable energy sectors of Euro-zone, Central Asia, the Far-East and North American countries to South Africa at Coega over the past 9 years.

30 31

INVEStOrS

Investors Number Comment Operational 28 Coega IDZ: Bosun Bricks (SA), Dynamic Commodities (SA), UTI Couriers (SA),

Cerebos (SA), PE Cold Storage (SA), Digistics (SA), Electrawinds (Belgium), General Motors Part and Accessories Distribution Centre (SA/USA), Cape Concentrates (SA), Coega Dairy/ Coega Cheese (SA), APM Terminals (SA/Holland), Discovery Holdings Pty Ltd (SA), Famous Brands (SA), Agni Steels (India), Powerway JA Solar (China/SA), ITPASA, FAW (China), DCD Wind Turbines (SA), Air Products (USA/SA), Afrox (SA).NMBLP: Faurecia (France), Rehau (Germany), Grupo Antolin (Spain), Benteler (Germany), Inergy (France), Hella (Germany), MSC (SA) and QPlas (SA).

Coega has an ever widening and growing basket of investors in the Coega IDZ and NMBLP across its key focal sectors. The below outlines Coega’s investors, operational, under construction and those in the pipeline.

AFROX

32 33

NMbLp

The automotive industry is the leading manufacturing sector in South Africa and Eastern Cape’s economy. The automotive cluster incorporates the manufacture, distribution, servicing and maintenance of motor vehicles and plays a vital role in contributing extensively to Gross Domestic Product (GDP).

South Africa continues to enjoy significant location and competitive advantages compared to many other vehicle production areas around the globe.

It boasts flexibility to produce relatively short runs, abundance of relevant raw materials, competitive energy costs combined with expertise, advanced technology and well established business relationships with holding companies which ensure that the South African-based industry adds value to the global sourcing strategies of multinational automotive corporations which enables it to manufacture and export vehicles over 80 countries.

The NMBLP, managed by the CDC, provides infrastructure and services to the automotive manufacturing industry. By providing integrated logistics services and infrastructure, the NMBLP assists manufacturers to reduce automotive manufacturing costs and improves suppliers’ competitiveness.

The vision is to obtain economies of scale for the automotive manufacturing industry through centralisation of different functions, and to reduce costs by shortening and improving the supply chain. Some examples are:• the cost advantages and increased process stability to OEMs• cost synergies, an improved environment and strategic position to suppliers• additional business opportunities for service providers to reduce operational costs• strengthening of the automotive industry and job creation for the community

The Coega IDZ and the Nelson Mandela Bay Logistics Park (NMBLP) is positioned in the pioneering heart of South Africa’s motor industry and builds on an auto-industry history of close to 90 years.

Within Nelson Mandela Bay there are more than 150 first, second and third tier component suppliers servicing local and foreign vehicle assemblers, three OEM (Original Equipment Manufacturers) which include VWSA, GM SA, and FAW SA. This capacity is further complimented by the Ford Engine Plant located in the region.

34 35

Investors in NMBLP take advantage of the following:• Globally competitive prices and services.• Environmental sustainability.• Purpose-built facilities.• ICT-enablement and services.• Shared logistical services.• Establishment of production activities in a safe and secure manufacturing environment.• Land and buildings for lease.• Shared telecommunication networks and also shared 24-hour security and other services in an enclosed and fenced off area.• Municipal services of world class standards.• Assistance to access investor support and incentives available from national, provincial and local government and the option to locate in a customs controlled area (CCA) offering duty and VAT suspension.

• Worker recruitment and training to address the specific needs of each investor.• Logistical solutions providing easy access to the national freeway connecting all major cities, provinces and countries.• Access to export markets via South Africa’s newest deep-water port of Ngqura, the existing port of Port Elizabeth and an international airport.• Linkages with government supported initiatives such as interfacing with local, provincial and national government in the recently established Eastern Cape Automotive Cluster and the Eastern Cape Chapter of the Tooling Association of SA (TASA).

The 235 hectare NMBLP was developed as a government project with participation from institutional and private investors. The development is located in the Uitenhage industrial area. The main portion of the park is industry specific for the automotive sector.

The NMBLP offers investors in the automotive industry an automotive supplier park that:• Services the requirements of VWSA and other assemblers by attracting just in time (JIT) and just in sequence (JIS) suppliers.• Close proximity to VWSA and GMSA offering logistical and cost advantages.• World class top structure solutions.• Full range of shared services.• Competitive lease agreements for new purpose- built buildings in the Uitenhage CBD.

Nelson Mandela Bay Logistics Park (NMBLP)36 37

bpO pArk

of human capital, state-of-the-art technology and connectivity, and the complex infrastructure needed for excellence in BPO service delivery. As a result, the CDC has positioned the Coega IDZ as the go-to destination for BPO in South Africa.

Coega’s BPO Park facilities are first-class and come at a competitive price. The Coega BPO Park is fully equipped to offer the best solutions for BPO services. Locating in the Coega IDZ means more than just access to facilities, but an accompanying lifestyle and positive investment environment to meet any investor’s needs.

The Coega BPO Park is ideally situated for businesses serving Europe, Africa and South Africa and is particularly well-placed to serve the English-speaking world. The Coega BPO building has top-notch facilities and accommodates 1 500 seats and covers 16 600m².

It also has the following world-class services and infrastructure in its purpose-built BPO building:

• Robust power and telecommunication infrastructure;• A database of skilled workers – over 4 000 of whom have direct telephony skills;• Space customised to user requirements at competitive rates;• In-house recruitment, selection and training;• Training and development support; • A range of incentives;• A thriving data centre for management, monitoring and operation of ICT infrastructure, as well as reporting and performance management;• Proximity to other investors and supply chain/ business development opportunities; • Linkage to all transport nodes within the city;• A huge labour pool adjacent to the BPO Park;• Fair trade compliant environmental and labour practices;• Offices, training rooms, boardrooms and shops; and

Global companies streamlining their operations are opening the door for major supply chain and Business Process Outsourcing (BPO) opportunities, and the CDC has moved decisively to attract investment to its high-tech, purpose-built BPO park.

The CDC has invested heavily in developing space and world-class infrastructure to meet the needs of a sustained organisational focus on investment attraction and retention for back of office operations outsourcing. The results are remarkable as the Coega IDZ now boasts premium space for BPO operations uniquely complemented by high levels

38 39

spoken and suitable for a European market.

• Place: - It falls in the European and UK time zones and has time zone compatibility with Greenwich Meridian Time +2, within a two to three hour time difference of many major European countries; - Culture of working 24/7; - Cosmopolitan lifestyle; - World-class schools and training facilities, including a major university; - National and International field sports; - A well-established industrial and tourism sector; - Well-maintained city infrastructure; - Accessible housing and transport facilities; - Top restaurants, shopping centres and leisure facilities; - Ideal for domestic/regional expansions

and start-ups; - Ideal for large captives and offshore companies, specifically in the English- speaking markets (USA and UK); and - Recreation facilities.

Added to these locational advantages, contact centres in the region also have the lowest attrition rate in South Africa of less than 2%; and are recognised as some of the most productive in Africa.

• A cafeteria and restaurant.

A basket of other locational assets make the Coega BPO Park an ideal space to invest. Already a major South African BPO operation has located in the Coega IDZ, Discovery Health, leading to sector growth for the city of Nelson Mandela Bay and the Eastern Cape Province.

Locating a business here means tapping into a huge reservoir of resources – tangible and intangible – and for BPO investors, Nelson Mandela Bay in particular offers these locational assets:

• A deep pool of BPO-specific skills: - Nelson Mandela Bay (Port Elizabeth) region is home to over 28 000 English speaking students; - English is widely spoken by the population in a neutral and clear accent; and - Afrikaans, another local language related to Dutch, German and Flemish, is widely

BPO Park40 41

SEctOr OVErVIEW

Chemicals

South Africa has a well-established chemicals sector, with revenue in excess of $35.1 billion, making it the biggest chemicals market in Africa. The South African chemicals sector contributes 6% to the GDP and 25% to the manufacturing sector.

The biggest driver in the chemicals sector is the increased demand for specialty and commodity chemicals, such as plastics, paints, and coatings and construction chemicals, as

a result of increased consumer spend and the increase in infrastructural budgets. A key challenge is the shortage of skilled engineers, chemists, and artisans, which is slowing further growth in this sector.

Of the 80,000 fuels and pure chemicals types being manufactured globally, South Africa only manufactures 300. The sector is the largest of its kind in Africa and is highly complex and diversified. From a strategic perspective the sector is segmented into 11 sub-sectors excluding synthetic textile fibres, which is listed under the textile

FAW sunrise Agni Steels SA Agro-processing

CDC Video

There are dedicated clusters within the Coega Industrial Development Zone (IDZ), which are designed to support the businesses investing. These dedicated clusters ensure maximum efficiencies.

The Coega Development Corporation (CDC) continuously improves the competitive positioning of the IDZ and the Nelson Mandela Bay Logistics Park (NMBLP) and aims to provide an extremely competitive manufacturing location for its various sectors: Chemicals; automotive; metals; energy; and agro-processing and aqua farming.

42 43

South Africa’s pharmaceutical market and industry are, however, by far the largest in Africa.

The DTi’s Industrial Policy Action Plan of 2014-2016 identified the following key opportunities:• Meeting fast-growing public sector demand for pharmaceuticals, especially - anti-TB medicines; and - medicines for non-communicable diseases/ conditions such as diabetes, cancer, circulatory and cardiovascular conditions etc.• Manufacturing generic copies of medicines losing patent protection in 2014-2015 for supply into the SA public and private health sectors.

CDC Chemical Targets

Based on a demand analysis study on the South African chemical sector, the following opportunities have been determined for the Coega IDZ:

• Aluminium sulphate;• Lactose;• Polystyrene;• Butadiene;• PET polymer; and• Biodiesel.

To take advantage of chemical project development opportunities at Coega, please contact an expert in the chemicals sector, Mr Duane Mouton on:

E-mail: [email protected]: +27 41 403 0505Fax: +27 41 403 0401

Operational Investors in CDC’s Chemicals Sector:

industry. They are, with sectoral production depicted in brackets: Liquid Fuels (31%), Plastic Products (20%), Consumer Formulated Chemicals (5%), Inorganic Chemicals (8%), Primary Polymers and Rubbers (7%), Pharmaceuticals (8%), Rubber Products (5%), Bulk Formulated (5%), Organic Chemicals (6%), Pure Functional and Specialties (5%) and Fine Chemicals (<1%).

Plastic Conversion

South Africa has a strong, established sector specialising in the conversion of primary plastics into end products by means of processes such as injection moulding, extrusion, rotomoulding and forming. Plastics manufacturing in South Africa contributed approximately 0.5% to the GDP and 3.2% to the manufacturing sector in 2012. The export value of plastic products in 2012 was R13.1bn compared to an import value of R20.2bn, leading to a trade deficit of R7.1bn. The industry’s contribution to the economy is nevertheless significant, and also expressive of increasingly innovative connections with the green economy. With increased

investment and technological know-how, the plastics industry in South Africa is in principle capable of undergoing a major diversification from basic to more sophisticated products.

The DTi’s Industrial Policy Action Plan (IPAP) of 2014-2016 identified the following key opportunities:

Key areas of opportunity for growing sector include:• Automotive interior and exterior products;• Food packaging;• Medical products;• Buildings- pipes, flooring and building sheets;• Electrical and electronics cables, appliances and casing components.

Pharmaceuticals

The South African pharmaceutical sector at the ex-factory price level was US$ 4.0 billion (R 36 billion) in 2012 – or just 0.4% of the global pharmaceutical market by value.

44 45

A location in the Coega IDZ or the NMBLP has the benefit of providing:• Logistical solutions providing easy access to the National Freeway connecting all major cities in the Eastern Cape and other SA provinces and other African markets.• Access to export markets via South Africa’s newest: - deep-water Port of Ngqura, the existing port of Port Elizabeth; and - an international airport.• Linkages with government supported initiatives such as interfacing with local, provincial and national government in the recently established Eastern Cape Automotive Cluster and the Eastern Cape Chapter of the Tooling Association of SA (TASA).

Investment Opportunities

The CDC is involved in activities to continuously improve the competitive position of the IDZ and the NMBLP and is aiming at providing an extremely competitive manufacturing location for the automotive sector in South Africa.

One of the expressed objectives is to finalise the establishment of a Multi OEM Complex in Zone 2, a Customs Controlled area offering a duty and VAT suspended environment.

It is CDC’s aim to intensify efforts to locate:• First, second and third tier automotive component suppliers in the NMBLP and Zone 2.• Original Equipment Manufacturers (OEMs) to assemble passenger, bus, truck and agricultural vehicles in Zone 2.• Shared services to Zone 2 to accommodate particulary OEMs with small production runs. The shared facilities are inclusive of an E-Coating facility and paint shop.• A purpose built, fully effective tooling manufacturing and servicing cluster.• A logistics service platform complimented by a full range of other support and complementary industries. This is inclusive of a Vehicle Preparation and distribution centre (VPC/VDC).

Automotive

Coega is playing a vital role in stimulating the development of the automotive industry in the Nelson Mandela Bay Municipality (NMBM) and Eastern Cape (EC) at large. This is in line with the Coega Development Corporation’s (CDC) objective to continue to play an increasingly relevant role in enhancing the region’s automotive footprint and in contributing to the sustainability of the automotive sector by providing opportunities to service the local and export markets.

Most notable achievements thus far include the location of automotive component suppliers in the Nelson Mandela Bay Logistics Park (NMBLP) as well as the establishment of China’s FAW vehicle assembly plant on a 40 hectare site in Zone 2 in the Coega IDZ. FAW became operational in July 2014 when the facility was officially opened by Honorable President Jacob Zuma.

The CDC’s offering to automotive investors includes cost effective comprehensive manufacturing solutions in Zone 2

(404 hectare) of the Coega IDZ and also in the Nelson Mandela Bay (Automotive) Logistics Park in Uitenhage (235hectare). CDC supports automotive investors, assemblers and component suppliers alike with a diverse range of services to allow companies to focus on the core business of manufacturing and distribution.

The business solution to automotive investors includes:• Establishment of production activities in a safe and secure manufacturing environment. This includes land and buildings for lease, shared telecommunication networks and also shared 24-hour security and other services in an enclosed and fenced off area.• Municipal services of world class standards, assistance to access investor support and incentives available from national, provincial and local government and the option to locate in a customs controlled area (CCA) offering duty and VAT suspension.• A basket of other investor services including worker recruitment and training to address the specific needs of each investor.

46 47

Metals

South Africa has a wide range of resources with a unique advantage in mineral and metal resources, which creates the opportunity for economic development and job creation. The Industrial Policy Action Plan (IPAP) has included the Coega IDZ in the drive to increase manufacturing production and beneficiation in South Africa. South Africa is the world leader in mining and minerals, with the lion’s share of global reserves and production. Our wealth has been built on the country’s vast resources - nearly 90% of the platinum metals on earth, 80% of the manganese, 73% of the chrome, 45% of the vanadium and 41% of the gold. Over a century of expertise in mining has made South Africa the world’s leading producer of a range of minerals and metals. Coega’s Special Economic Zone with its strategic logistics linkages provides an ideal platform to beneficiate these metal resources. A particular focus of the Coega IDZ is to ensure greater local processing of South Africa’s abundant natural resources.

Investment Opportunities

For the beneficiation of the countries minerals Coega Development Corporation has allocated two zones for metal investments. Zones 5 and 6 have been demarcated for metal sector investments and consist of a total of 1809 hectares of land. The intention is to establish large scale, self-sustaining, commercially viable manufacturing and beneficiation activities focusing on the production of ferrous and non-ferrous metals.

Independent studies have identified the Coega IDZ location for metal sector investments that are technically feasible, economically viable and qualitatively reliable for the following production plants:• Iron and carbon steel smelting and manufacturing• Stainless Steel manufacturing • Carbon and Stainless steel rolling-mills• Ferromanganese Smelt• Copper smelting and manufacturing• Zinc smelting• Direct Reduce Iron and Hot Briquette Iron manufacturing

Multi-OEM Complex

The CDC will soon establish a Multi-OEM complex for the automotive assembly and components manufacturing sectors in Zone 2. It has earmarked 306 hectares of land for automotive manufacturing industrial activity through its recently unveiled five year strategic plan, which will embrace an OEM industrial clustering approach.

The Multi-OEM complex will house vehicle assembly halls and shared service infrastructures. First, second, and third tier automotive component suppliers will all be brought together in one mega-automotive zone. The envisaged Coega Multi-OEM complex will have shared facilities that will include a supplier park (56 hectares), an e-coating plant (3 hectares), a paint shop (3 hectares) and a vehicle distribution centre (3 hectares), amongst other amenities.

It will also offer investors advantages such as lower infrastructure investment costs, increased production flexibility for contract manufacturing opportunities through

shared services, and enhanced supply chain management. Another benefit is reduction of inventory holding costs.

Assembly halls under the vehicle manufacturer’s own brand name will be supported by a network of shared services and facilities that will reduce assembly costs.

For investors who wish to take advantage of opportunities in the automotive sector, please contact our expert in the automotive sector, Mr Gustav Meyer on:


Operational Investors in CDC’s Automotive Sector:

48 49

• Manganese Smelting• Cement Production

Coega IDZ Offering

The Coega IDZ ideal logistical location with its world-class infrastructure offers a range of benefits for metal industry smelters and manufacturing companies reducing the production input cost imperatives through its availability of raw materials and labour and many more. The Coega offering involves the following:• Collaborative incentive packages with national, provincial and municipal entities• Facilitation with government entities e.g. work permits etc.• Offering support with Safety, Health, Environment and Quality services e.g. EIA process• Technical support with Information Communication and Telecommunication (ICT) services• Human capital development and labour management services• Business management services building capacity with

supplier and service providers• Accommodation solutions• The Port Elizabeth region offers an ease of doing business lifestyle approach with its world class theatres, pristine beaches, public amenities, top achieving schools, recreation facilities and unspoiled beaches.

For investors who wish to take advantage of opportunities in the metals sector, please contact our expert in the metals sector, Mr Sadick Davids on:


Operational Investors in CDC’s Metals Sector:

FIRED UP: Black-owned steel mill, Agni Steels SA, came online in 2014, bringing to bear the first fruits of the Minerals Beneficiation Bill (2011).50 51

for a Combined Cycle Gas Turbine (CCGT) power plant project, coupled to an LNG terminal at the Port of Ngqura.

Renewable Energy

The Eastern Cape has significant resource potential in terms of renewable energy generation, with exceptional wind conditions by international standards, good solar conditions, as well as substantial potential for energy from the biomass and biofuels sectors. The Coega IDZ proves a strategic area to establish a renewable energy node to boost the Eastern Cape economy.

Coega has 3 wind farm projects investments planned with an overall capacity of 183 MW, a 12 MW Photovoltaic (PV) farm, with Biomass to electricity projects in the pipeline.

In response to the extensive roll-out of the DoE’s Renewable Energy IPP Procurement Programme

Energy

South Africa is presently one of the world’s most exciting Energy markets. There have been significant changes in the South African energy sector with regards to the regulatory and policy framework.

A key component of the South African Integrated Energy Plan is the Integrated Resource Plan 2010 (IRP), the Department of Energy’s (DoE) 20 year master-plan, which outlines new energy generating capacity from a range of technologies like, renewables, natural gas and nuclear. There is a national drive that interlinks energy plans and other national plans-including the National Development Plan; New Growth Path; Industrial Policy Action Plan and the Ports, Marine and Land Transport Plans.

The Coega IDZ has also built momentum on energy projects in both conventional energy and renewable energy so as to attract and sustain its investment projects.

Gas Projects at Coega

The amendment of the Gas Act 2001, aims to incorporate changes in the gas industry landscape in redefining “gas” to include unconventional gas (like shale gas) & other modes of transporting gas in the form of liquefied natural gas (LNG) and compressed natural gas (CNG). Furthermore, in 2012, the Ministerial Determination allocated 2,652MW to be generated from Natural Gas. The importance of the CDC to meaningfully engage on these projects has been sharpened as the Department of Energy (DoE) is developing a national Gas Utilisation Master Plan (GUMP), to provide a long term roadmap to 2050 for strategic, policy and institutional decisions.

The Coega IDZ is the location for the R 3.5 billion Dedisa Peaking Power Plant Project at 335MW, based on Open Cycle Gas Turbines (OCGT) technology. This plant, expected to come on stream in 2015, will initially be diesel-driven, with capacity to be converted to a gas-fired power plant. CDC has done preliminary work on Coega readiness

POWER SURGE: The R3.5-billion Dedisa Peaking Power Plant went under construction in the Coega IDZ during the 2013/14 FY.52 53

Agro-processing & Aqua Farming

Port Elizabeth and surroundings have a Mediterranean climate that enables growth of a diverse agricultural economy with more than 20 different products and crops ranging from citrus and deciduous fruits, dairy, vegetables, ostrich products, poultry, wool and mohair, among others. The Eastern Cape Provincial Government, as part of its Provincial Growth and Development Plan (PGDP), has identified agriculture as an economic growth sector with a large-scale investment potential which could contribute significantly to economic diversification and job creation. According to DAFF (2010), the Eastern Cape Province produces 21% of South Africa’s cattle, 28% of its sheep and 46% of its goats. Successful crops grown in the Eastern Cape include pineapples, tea, citrus fruit, tomatoes and chicory. Opportunities that the CDC would like to pursue are in processing and distribution. Agro-processing is the processing, preservation and preparation of agricultural production for intermediate and final consumption.

The South African government has identified the agro-processing industry as a vital part of development that has a potential to create sustainable employment up and down stream and also through integration with other sectors, such as the green economy. The agro-processing industry has backward linkages with agriculture and rural development, thus possibilities exist of alleviating poverty in the rural poor communities of South Africa. According to the Industrial Policy Action Plan (IPAP), special emphasis will be placed on the agro-processing sector because it is particularly well placed for scaling up through leveraging market growth and associated upgrading of supply capacity and capabilities. The New Growth Path (NGP, 2010) has a target of 145 000 jobs from the agro-processing industry by 2020, while the IPAP2 (2012) has conservatively estimated the creation of 66 180 jobs in agro-processing over the next 10 years.

Agro-processing is a diverse industry with sub-sectors that include food processing, beverages, aquaculture, biofuels and medicinal applications. The food processing

(REIPPPP), the CDC has seen the establishment of solar and wind turbine component manufacturing facilities within the Coega IDZ. The sector also includes manufacturing of Solar Water Heaters and distribution and assembly investments for the future to establish technology localisation.

Further to this, Coega make a significant contribution on the renewable energy logistics. Transportation and logistics for wind turbines and their component parts is an area of growing importance and opportunity for the wind energy industry.

Also a prominent component of the IRP is the requirement for 9600 MW of new nuclear capacity. Thyspunt, which is 80 km away from the Coega IDZ, has been earmarked as a likely location for the nuclear fleet in South Africa. CDC has identified advanced manufacturing opportunity, which would include component manufacturing for the nuclear, and support the drive for nuclear localization.The CDC energy sector provides a social good in the

form of a sustainable resource that does not impair future generations. The establishment of a high profile energy sector of this nature will enhance the CDC’s IDZ as a “world class” and innovative destination.

For investors who wish to take advantage of opportunities in the energy sector, please contact our expert in the energy sector, Sandisiwe Ncemane on:


Operational Investors in CDC’s Energy Sector:

54 55

Aqua Farming

The CDC also has plans for the development of a R2-billion (US$ 200 million) aqua-farming facility on 300 hectares of land in Zone 10 of the Coega IDZ. A feasibility study was completed earlier in August 2014 and the envisaged facility will focus on the commercial cultivation of marine animals and plants as opposed to production of freshwater fish in our neighbouring IDZ in East London. Approximately 5 000 jobs can be created for the local economy through this project. The findings of the feasibility study especially showed that environmental conditions were ideal for abalone farming.

The CDC aims to dedicate 80 Ha to abalone farming by 2020 creating about 2 080 permanent jobs. South Africa is widely known to have of the best abalone and the best product in the world, all of which is exported to the Far East. In addition, Finfish farming on a proposed 120 Ha in the Coega IDZ can create about 3 000 additional permanent jobs in the long term.

The CDC would continue to pursue opportunities in the agro-processing and aqua farming industries that will play an important role in creating jobs, alleviating poverty and reducing hunger, especially within the Eastern Cape.

For investors who wish to take advantage of opportunities in the agriculture sector, please contact our expert in the agriculture sector, Dr Keith du Plessis on:


Operational Investors in CDC’s Energy Sector:

sub-sector is the largest manufacturing sector in employment terms, with approximately 205 097 employees. This figure could be in excess of a million jobs if up-stream (primary) agriculture is included. In economic terms the statistical analysis of the agro-processing sector contributed by 3.1% to the GDP and 18% towards employment in 2011, through the food-processing and beverage manufacturing sub-sectors only (IPAP 2013).

The country possesses competitive advantage in a number of fruit and beverage sub-sectors that – if fully exploited – would place South Africa among the top 10 export producers in high-value agricultural products. The products from subsectors such as high-quality wines, indigenous Rooibos and Honeybush tea, and certain fruits are highly sought after in export markets. The global market has also seen substantial growth in the trade of farmed fish and related products.

As natural fish resources continue to decline and demand grows, the viability of farming a range of fish species has

grown. Aquaculture is the fastest-growing food production sector in the world, growing at an annual rate of 8-10% per annum for the last two decades and outstripping livestock three to fold, while South Africa’s sector has grown at only 3% annually (IPAP). The CDC has identified 300 Ha for land-based aquaculture that could create 5000 jobs and contribute R2.8 billion to the GDP of the country. Species that has been earmarked for production in Coega IDZ include abalone, finfish and seaweed.

Agro-processing56 57

IDZ SUppOrt SErVIcES

Facilities & Estate Management

The CDC owns and operates an extensive portfolio of buildings, equipment and other turnkey facilities for investors and clients, allowing the organisation to deliver its objective as a leading and world-class investment destination.

Safety, Health, Environment & Quality

We are ISO 9001, ISO 14001 and OHSAS 18001 certified, complying with world standards of safety, health, environmental stewardship and quality.

Agni Steels SA General Motors South Africa UTI Sun Couriers

Coega offers fully integrated IDZ support services such as operating an extensive facilities and estate management portfolio; complying with world standards of safety, health, environmental management and quality; and safety and security.

58 59

Commercial Services

Commercial Services provides expert insights into new ventures through its business analyst services.

The Commercial Unit has focused its attention on providing three pillars of services within the organisation:• Project negotiations for the IDZ and the NMBLP;• Commercialisation activities to seek new revenue opportunities; and • Support services to other units in the organisation.

Trade Services

Trade services include customs, logistics and security services offered to tenants and investors. CDC’s Customs Control Area is located in Zone 2 of the Coega IDZ and is already advancing Fortune 500 investors, such as FAW China.

Logistics allows for integrated operations across the Coega

IDZ.Security in the Coega IDZ is growing strength to strength. Stricter security and access controls along with security innovations have produced astonishing results to the management of security in the zone.

Spatial Development

The CDC’s spatial development unit facilitates integrated and balanced development within the Coega IDZ. Spatial planning gives geographical expression to the economic, social, cultural and environmental policies which influence the Coega IDZ. It is an interdisciplinary and comprehensive approach directed towards achieving sustainable regional development and the physical organisation of space according to the CDC’s Package of Plans.

NMBM Strategic Infrastructure Projects60 61

Municipal Incentives

A host of municipal incentives are available and include rebates on building plans, financing of feasibility studies and/or business plan development, and discounts on municipal services (water, sewerage, refuse, electricity and property rates). Together with well-serviced land, linked to the municipal water and power grid, the CDC is able to offer the following IDZ infrastructure • 41km of roads• 37km of stormwater• 40km of sewer with 5 pump stations• 38km potable water • 178km service ducts (telecoms)• 184km electrical cable• 1138 street lights• 83 x MV electrical substations• 5 x 132Kv main substations• One peaking power plant

For investors who would like more information on CDC’s IDZ Support Services, please contact Donevin Lesch on:


TANk FARM ROAD: There were huge strides made to complete the Fish Tank access road for TPNA.62 63

cOMMErcIAL SErVIcES

The CDC offers a fully inclusive range of business management services and products, including:• Coega Human Capital Solutions offers human resource services• Vulindlela Accommodation and Conference Centre is synonymous with high-end events and conferences• Coega Corporate Travel offers travel and travel related solutions• Coega Business Solutions offers strategic management services including strategy

development, project management and other strategic management services.• Coega Telecoms aim to enhance the Coega IDZ telecommunications services.• Project Management Services, Coega acts as an implementing agent that provides a total project management solution for infrastructure projects Coega strives to improve the delivery of infrastructure in the Eastern Cape by addressing skills shortages, unemployment, constrained planning and project management capacity, under-

Vulindlela Conference Centre Vulindlela Accommodation Human Capital Solutions Exhibition

Coega offers an all-inclusive basket of business management services and products, ranging from, human resources management; a venue that caters for conferences and events; a travel agency seeing to the needs of corporate travel; telecoms; project management services; and business solutions, throughout the Eastern Cape and KwaZulu-Natal.

64 65

• Project Management: Coega Human Capital Solutions offers a comprehensive range of project management services designed to give your business significant advantages and fast- track the success of your projects. Services include: - Mega Project Delivery (construction) for a full range of human resource management and social project implementation on an outsourced basis. Typical service offerings are: stakeholder engagement, recruitment and selection, negotiation of project labour agreements, skills training, labour absorption forecasting, and SMME development and reporting on the relevant social indicators/ASGISA requirements to the relevant government departments. - SMME development and support inclusive of training, mentoring,

expenditure, sub-standard infrastructure, and inefficiencies that characterise delivery of infrastructure by government in South Africa generally and the Eastern Cape Province in particular. In the process, Coega advances socio- economic development and transformation within the Eastern Cape and South Africa as a whole.

Human Capital Solutions

Coega Human Capital Solutions is based within the Coega IDZ where the offices, medical screening facilities and Skills Development Centre are located. Our human capital solutions services are delivered throughout the Eastern Cape.

We offer human capital solution services covering the following areas: human resource management, training and development, recruitment services, employee relations management and enterprise development.

Main Services Offered:

• Human Resource Management: Coega’s human resource management solutions range from targeted, short-term interventions to full turnkey projects, that include recruitment, selection, and training – right through the pilot phases to full production. Our depth of experience means that tailored human resource management solutions are now available to investors, as well as the public and private sectors.

• Training Services: Coega’s Training Services facilitates all facets of training, with a particular focus on technical and construction-related skills development through learnerships, internships and apprenticeships. Our training services aim to address skills development and job creation in the Coega IDZ, the Nelson Mandela Bay Metro and within the Eastern Cape at large.

Human Capital Solutions66 67

Bay. The popular 450-bed accommodation is currently being expanded by 100 beds to meet the growing demand. Guests can select options to suit their needs, which range from a bed and breakfast or self-catering three-star accommodation, both at the lowest rates the region has to offer.

This versatile venue also boasts conferencing facilities that are able to accommodate up to 1000 delegates, in addition to four breakaway rooms. These lavish function facilities – with the added convenience of on-site catering – are proving to be the ideal choice for memorable wedding receptions. The success of the centre is measured on its ability to host large-scale events for government departments, including major events such as the South African Police Services national choirs.

The centre is located in an area that is known for its tourism attractions, with the Addo Elephant Park – one of the city’s prime wildlife reserves – in close proximity.

The Vulindlela Accommodation and Conference Centre is conveniently situated close to the city’s beautiful beachfront attractions, and a few kilometres away from the upmarket suburb of Bluewater Bay.Additional benefits of the centre include secure parking, housekeeping and laundry services, sporting facilities, 24-hour security and access control and taxi services on request.

Facilities

• On-site catering• Safe and ample parking• 24hr Access controlled security• Suitable for high-tech presentations• No traffic jams - just off the main highway• Accommodation on site• Wheelchair friendly• Shuttle Service

enterprise development, access to finance and on-going management support.• Gateway to Opportunity – The unemployed, students, graduates, interns, and part-time or full-time employees, can access employment, training and skills development opportunities today by simply registering on the G2O webpage. Gateway2Opportunity (G2O) is a Human Capital Information Management System solely dedicated to benefiting would- be employees through the listing of employment, training and skills development opportunities. The G2O webpage benefits both candidates and employers in Nelson Mandela Bay by: - Linking all available skills development and training opportunities in the Metro to a central enrolment system - Providing comprehensive career guidance information, inclusive of industry trends and occupational

outlooks - Linking job seekers with all available job opportunities in the city - Enabling employers to recruit on-line and immediately access the candidate database for suitable applicants

Vulindlela Accommodation and Conference Centre

The state-of-the-art Vulindlela Accommodation and Conference Centre has become synonymous with high-end events and conferences. A fully equipped facility which provides a tranquil environment for delegates who favour a relaxed atmosphere, the centre is tucked away from the hustle and bustle of the city, which remains just a short distance away. The venue is a firm favourite with government and the private sector.

The centre, is being recognised as a comfortable, affordable “home away from home” for visitors to Nelson Mandela

68 69

Coega Corporate Travel

Coega Corporate Travel caters for travel planning requirements, 24/7 at no extra cost. For travel services with the personal touch, the Coega Corporate Travel team exceeds customer expectations by providing seamless and cost effective travel management solutions. With us you are in safe hands, from point of departure right through to your destination.

The Coega Corporate Travel team have extensive knowledge of the travel industry and offer personal and corporate travel services including:• air tickets• car hire• shuttle service• point to point service & airport transfers• accommodation• visas, forex and travel insurance• 24 hour information centre• visas

• FOREX arrangements

Coega Business Solutions

Coega Business Solutions offers a fully scalable suite of integrated management consultancy services – from turnkey delivery to strategic support in a single area. With the support of these services, the Coega delivers on time and on budget.

The Coega Business Solutions Management Consultancy works in partnership with the managers of government departments, municipalities, parastatals and private partnership to help them deliver on their strategic goals. Our Management Consultancy has the tools to identify the factors hampering delivery and performance, and to partner with the client to find solutions, and then to help implement the solutions.

Vulindlela Accommodation and Conference Centre, accommodate in access of 1 000 delegates.70 71

Renovations at hospitals around EC Health MEC, Sicelo Gqobana inspects newly stocked facilities Newly Revamped Learning Environment

The CDC is making great strides offering its mega and complex infrastructure projects expertise, and also turnkey and strategic solutions, as a service to various clients – including the Department of Roads and Public Works; Department of Health; Department of Education; Department of Sport, Recreation, Arts and Culture; Department of Rural Development and Land Reform; and Department of Economic Development, Environmental Affairs and Tourism in the province – but also in KwaZulu-Natal and other national departments, including National Department of Public Works.

Coega’s project management division is a highly skilled, fully resourced business division of Coega which, through the provision of programme management and project management services, facilitates the implementation of infrastructure projects for the benefit of the Eastern Cape Province and the country and ensures that your business venture receives world class project management services with the best of local resources.

prOJEct MANAGEMENt SErVIcES

The CDC has expanded its role from managing the Coega IDZ and NMBLP in the NMBM to acting as implementation agents on various government contracts for a range of infrastructure projects around the Eastern Cape and KwaZulu-Natal; as well as assisting on organisation’s strategic objectives and the development and implementation of the renewal and turnaround strategies for public and private sector clients.

Since the 2010/11 FY, the CDC has managed schools, hospitals and road-building projects, using its organisational expertise to drive socio-economic development in these two provinces. In 2012 the CDC was also appointed to develop and implement a renewal strategy in the DRDLR National Office for a period of 3 years.

72 73

Value Proposition

• World class expertise on call – the same team that built the Coega IDZ from 1999• Proven track record in the Eastern Cape – over 250 projects from Mount Fletcher in the far North East to Tsitsikamma in the South West• Cost savings through systems developed to monitor projects in remote areas• Job creation – Coega has created more than 51 000 direct and indirect jobs• SMME development

Coega meets your business’ unique needs and objectives with fast and efficient delivery that incorporates socio-economic, environmental and occupational health and safety issues to ensure sustainable development.

The impact of the infrastructure projects is significant for many of the communities in which they are based, since they provide job opportunities first and later service delivery and improved facilities. Many of the projects are complex and include building schools, roads and hospitals.

With 4 491 people employed for example through the KZN DoE project, the value of the socio-economic achievement is clear. The CDC has made a commitment to ensure that every rand spent does not only guarantee the establishment of infrastructure but is also targeted at giving the opportunity to unemployed graduates from the built environment sector. The extension of training on site, which includes HIV/AIDS awareness and employment guidance, also ensures infrastructure resources address the challenges confronting South Africa.

For government departments and other private sector clients who would like more information on CDC’s Project Management Services, please contact our expert in Infrastructure Project Management, Chuma Mbande on:


Vusubuntu Conference Centre

Middle Qutsa Pre-Primary School

B.Sc (Civil Eng, Wits), M.Sc (Engineering, Wits),

MBL(UNISA), M.Sc (Financial Management, University of

London), Prince2 Practitioner

74 75

Renovations at hospitals around EC Construction underway at Cecilia Makiwane Hospital Newly revamped learning environment

SMME DEVELOpMENt

The CDC has a dedicated SMME Development Unit which facilitates programmes related to the development and support of SMMEs.

As an empowerment-driven organisation, the CDC is conscious of the power of the small business sector in terms of job creation and its contribution to economic development in the province and country as a whole.

The CDC has pursued a number of initiatives which prioritise empowerment, unlock opportunity and talent and stimulate the local economy – particularly in the infrastructure, construction and built environment sectors. The CDC has made major headway in creating empowerment opportunities derived from the contracts awarded by the CDC, based on the empowerment criteria of:

• Broad-Based Black Economic Empowerment (B-BBEE);• Women Empowerment Ownership (WEO);

• Small Medium Micro Enterprises (SMMEs); and• Local Empowerment Participation (LEP).

While the B-BBEE Scorecard does not specify women empowerment as a major criterion for empowerment status, the CDC considers it critical to monitor and report on this empowerment area.

Coega has seen its corporate target for SMMEs rise from 30% to 35% and later to 38%, ensuring there is meaningful involvement and participation of SMMEs in all contracts

76 77

that are awarded by the CDC. Further, the CDC has unbundled its big contracts into smaller packages to open up opportunities for smaller contractors. The SMME Unit works closely with units across the organisation to achieve this objective. Furthermore, the CDC has created a pool of pre-qualified contractors to expedite service delivery.

The CDC has also established and will maintain a compulsory benchmark of 35% SMME participation for all CDC projects and compliance will be monitored closely.

B-BBEE

The CDC’s commitment to transformation has also seen the launch and execution for Coega’s BEESIP (BEE Scorecard Improvement Programme) which assists 100% black-owned and black women-owned enterprises to improve their B-BBEE status levels.

Over the past two years, 600 black companies have benefitted from this programme and obtained a Level 1 B-BBEE Certificate. An outcome is that the CDC now has a

valid and active pool of 600 level 1 black-owned companies it can tap into for a range of services.

With a Level 1 status the SMMEs are able to compete against bigger, better resourced and more established companies when bidding for public and private sector contracts, boosting their chances of getting work.

For more information on CDC’s SMME Programmes, please contact Andile Ntloko on:


SMME DEVELOPMENT: The CDC launched its BEESIP to assist 100% black-owned and black women-owned enterprises to improve their B-BBEE status level.78 79

cOrpOrAtE SOcIAL INVEStMENt

The future of the Eastern Cape is being re-written by Coega, which is not only pouring billions into industrial and infrastructure development, but is also giving back to the province through high-impact corporate social investment projects that are changing thousands of lives.

Coega invests over R21-million annually in eleven deserving causes directly impacting the lives of over 8 000 people and indirectly changing the course of history for their families.

The focus areas of Coega CSI Programmes are:• skills development; • education; • training; and • helping vulnerable people

Grogro Township wheelchair campaign Driver Training Programme CDC’s Maths and Science Academy

CSI Programmes

The Coega Development Corporation (CDC) aims to make long-term and sustainable investments in communities. Coega’s sustainability focus ensures that CSI rolls through the organisation in cross-functional areas in job creation such as the internship programme, environmental protection, heritage and culture alignment, training and skills development, business partnerships, enterprise development and engagement with communities.

80 81

PROJECT AREA PROJECT DESCRIPTIONMaths and Science Programme Mthatha Provide practicals to Grade 11 and Grade 12 by conducting in house

Science experiments using mobile science equipmentFort BeaufortMdantsaneUitenhageNMBMProvide classes to assist learners that have failed Grade 12 Maths and Science or those that want to improve their results to be admitted at tertiary institutions.

Chess Development Programme NMBM Provide financial assistance to EP Chess for the development of chess teams in African communities.

Ubuntu Fund Cradle to Career Programme

NMBM Fund raising campaigns aimed at assisting Ubuntu with their Programmes such as the Motherhood Programme, Early Childhood Development Programme etc

Ubuntu Fund After School Programme

NMBM Provide assistance for Science learners in the form of a mobile science lab as described above.

CSI Programmes

PROJECT AREA PROJECT DESCRIPTIONDriver Training Programme NMBM Assist unemployed youth to obtain driver’s licence by providing driving

classes at no cost East LondonMthathaOR Tambo DistrictChris Hani DistrictAlfred Nzo DistrictJoe Gqabi District

Youth Leadership Development Programme

All 4 HET of the EC and the FET Colleges

An annual academy hosted by the CDC focusing of enhancing leadership qualities identified in tertiary students.

Career Guidance Programme NMBM Six Pack Career Guidance Programme is to make available career information to all NMBM pupils living in the townships and northern areas, to enable them to qualify themselves for a career for which they may have the necessary aptitude/talent

Crime Awareness Campaigns NMBM Creating Crime Awareness in Primary and High School through testimonies from ex-prisoners.

Disability Affirmation Programme

Eastern Cape Training Initiatives, Awareness Campaigns and Job Placements

Choral Music Port Elizabeth Establishment of the Centre of Excellence for Choral Music in schools.Social Assistance to Destitute Families Programme

Alfred Nzo District Municipality; OR Tambo District Municipality; and Chris Hani District Municipality

Building social infrastructure e.g. houses for destitute families; legacy monuments in areas where prominent struggle heroes come from; providing recreational facilities to historically disadvantaged communities

People with disability Driver Training Programme Coega Internship Programme

Chess Development Programme.

For investors who would like more information on CDC’s CSI Programmes, please contact Thandi Siyorayi on:


82 83

cOMpANY INfOrMAtION

COEGA DEVELOPMENT CORPORATION PROPRIETARY LIMITEDREGISTRATION NUMBER 1982/003891/07NATURE OF BUSINESS Industrial Development Zone and servicesAUDITORS Auditor GeneralBANKERS First National Bank Standard Bank Investec Bank LimitedLOCATION Coega IDZ Business Centre Corner Alcyon Road & Zibuko Street Zone 1 Coega IDZ Port ElizabethCOUNTRY OF INCORPORATION South Africa

cO

MpA

NY

DEt

AILS

cO

NtA

ct

DEt

AILS

COEGA DEVELOPMENT CORPORATION HEAD OFFICECorner Alcyon Road & Zibuko Streets, Zone 1, Coega IDZ, Port Elizabeth 6100Coega Development Corporation. P/B X6009, Port Elizabeth 6000, South AfricaTel: +27 (0) 41 403 0400 - Fax: +27 (0) 41 403 0401 E-mail: [email protected] - Website: www.coega.com

EAST LONDON OFFICE: Harraway House, 12 Pearce Street, Berea, East London 5241 Tel: +27 43 711 1600

DURBAN OFFICE: 1st Floor, Mayfair on the Lake, 19 The High Street, Parkside, Umhlanga 4000 Tel :+27 31 584 1760

“COEGA IDZ IS A GOOD STORY TO TELL”

Source: Minister of Energy, Dikobe ben Martins & Minister of trade and Industry, Dr rob Davies

9 March 2014 85

ENERGY AUTOMOTIVE

CHEMICALS

ENERGY

METALS

AGRO PROCESSING

More than enough reasons to invest.Join the good company of over 28 investors.

DCD Wind Towers

Dynamic Commodities

Agni Steels SA Air Products

DEDISA Power Plant construction phase

First Automotive Works (FAW)

some of our investors:

DIGITAL LOGISTICS

PE COLD STORAGE (PTY) LTD

www.coega.com

86

Corner Alcyon Road & Zibuko Street, Zone 1, Coega IDZ, Port Elizabeth 6100Coega Development Corporation. P/B X6009, Port Elizabeth 6000, South AfricaTel: +27 (0) 41 403 0400 - Fax: +27 (0) 41 403 0401E-mail: [email protected] - Website: www.coega.com

Copyright

All rights reserved. No part of this document may be reproduced or distributed in any form or by any means, electronic, mechanical, photocopying or recording or otherwise, or stored in a database or retrieval system, without the prior written permission of the Coega Development Corporation (Pty) Ltd. © Annual Report

* Vulindlela Accommodation & Conference Centre …€¦ · * Vulindlela Accommodation & Conference...

Documents

Transcript of * Vulindlela Accommodation & Conference Centre …€¦ · * Vulindlela Accommodation & Conference...