RIVER HORSE VALLEY BUSINESS ESTATE SOCIO ... IMPACT ASSESSMENT NOVEMBER 2012 Photos supplied by...
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RIVER HORSE VALLEY BUSINESS ESTATE
SOCIO-ECONOMIC IMPACT ASSESSMENT
NOVEMBER 2012
Photos supplied by RHVBE Management Association
ETHEKWINI MUNICIPALITY
RIVER HORSE VALLEY BUSINESS ESTATE
SOCIO-ECONOMIC IMPACT ASSESSMENT
DRAFT 2
5 NOVEMBER 2012
PREPARED FOR:
eThekwini Municipality
Economic Development Unit
11 Rennie House
41 Margaret Mncadi Avenue
DURBAN
4001
Contact Person: Denny Thaver
031 – 311 4037
PREPARED BY:
Strategic Planning Resources
Postnet Suite 75
Private Bag X03
WESTVILLE
3630
Contact Persons: Tindall Kruger /
Dennis Nkosi
031 – 262 7014
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ACKNOWLEDGEMENTS
This Impact Assessment was made possible through the guidance and support received from the
Project Steering Committee including:
Denny Thaver as Project Manager representing eThekwini Municipality Economic Development
Unit;
Brian Ive, Mike Deighton, Musa Shabane and Cyril Gwala of Tongaat Hulett Developments; and
Trevor Pierce-Jones and Bruce Macaulay of the River Horse Valley Business Estate Management
Association (RHVBEMA).
Specific support to be acknowledged include:
The making available of all previous research reports available to the various institutions;
General information relating to the development made available by the various institutions;
The supply of high quality digital images by RHVBEMA;
Facilitating contact with key stakeholders for the pilot surveys by the RHVBEMA;
Making available a comprehensive database of properties and companies by the RHVBEMA; and
The commenting of the various institutions on progress reports, questionnaires and approaches.
The StratPlan Team
Tindall Kruger, Dennis Nkosi and Thola Sibiya
November 2012
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EXECUTIVE SUMMARY
BACKGROUND
The objectives of the study were firstly to confirm the impact to date of the River Horse Valley
Business Estate in terms of the local economy, employment and investment and, secondly, to
provide urban management decision-makers with a better understanding of what can be done to
further support the growth of businesses, employment and opportunities in River Horse Valley.
The assessment was specifically undertaken with a view to establishing whether the eThekwini
Municipality as the joint venture partner of Tongaat Hulett achieved it’s intended objectives through
the development. As a yardstick for measuring this achievement , it is noted that the Effingham
Development Joint Venture has spent R215.7 million to date on the installation of infrastructure,
including roads, services and platforms, creating serviced saleable sites to sell. The eThekwini
Municipality is roughly a two-thirds partner in the Joint Venture (pers com Joint Venture).
EThekwini has also spent R300 million on the construction of Queen Nandi Drive, however, this road
was viewed as essential infrastructure serving the larger region and was not constructed with the
view to provide access to the RHVBE. The proposed RHVBE development rather supported the
motivation for providing this strategic infrastructure linking major residential and business
townships, restructuring the colonial and apartheid urban landscape.
CORE FINDINGS
Based on the survey of 90 of a total of 173 companies and the collection of other relevant
information the core findings of the study related to:
Development cost: A total of R215.7 million, of which eThekwini made roughly a two-thirds
contribution, was spent on establishing and servicing the Estate (this excludes top structure
development). To place this in context this investment must be compared to public sector spending
on the uShaka Marine World (R735 million), the Durban ICC (R900 million in the 1990s), the Moses
Mabhida Stadium (R3.4 billion) and the King Shaka International Airport (R7.8 billion). In
comparison the public sector investment in RHVBE has thus been relatively small.
Capital investment: From calculations based on the 2012 eThekwini Municipality Valuation Roll of
the RHVBE the market value of properties in the RHVBE was estimated at R3.2 billion. Through the
survey further investment of R1.2 billion over the next five years could be confirmed. This is viewed
as a conservative estimate of the actual capital investment as it is anticipated that market value for
industrial properties will be well below the actual investment value. Again, to place this in context,
the construction of 4 000 middle income houses (each valued at R800 000) will equate this
investment value of R3.2billion. This capital investment of R3.2 billion should then also be
considered in the context of the R3.4 billion Moses Mabhida Stadium and the R7.8 billion King Shaka
International Airport.
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Municipal Rates Contribution: The rates contribution of properties in RHVBE is estimated to be
R83 million per annum, or more than a third of the actual investment cost of R215.7 million. This will
equate to the rates contribution of 6 000 homes valued at R1.5 million each, or 11 500 R800 000
homes.
Employment: Based on the survey findings it was estimated that in excess of 17 000 people are
employed in RHVBE. The permanent workforce is estimated to be 12 629 (of which 4 249 are new
jobs) augmented by a contract workforce of 4 446 people (including employees of contractors and
contract staff). Estimates from the early 2000’s placed employment in Isipingo / Prospecton at 21
000 people, Springfield Park at 12 000 and Phoenix Industrial at 4 500. The Durban ICC is suggested
to create 3 376 jobs directly related to the core activities of the Centre. Further to this, the majority
of employees employed in RHVBE are drawn from the general area in which it is located, i.e. INK
(32%) and Durban North (17%), with Reservoir Hills, Newlands and Avoca Hills making a combined
12% contribution to employment.
OTHER BASIC FACTS
A number of key facts confirmed through the assessment are highlighted:
A total of 173 companies were confirmed to be currently active in the RHVBE (52% or 90 were
interviewed for this assessment). With new developments this number is continually increasing.
49% of companies were classified as being part of the wholesale and retail sector, 21%
manufacturing sector related and 20% belonging to the transport, storage and communication
sector.
Three “clusters” feature prominently in the Estate viz. wholesale trade in machinery, equipment
and supplies (14% of companies), other retail trade in specialised goods (16%); and post and
associated courier services (10%).
The majority of facilities in RHVBE are branches representing larger regional, national and
international business concerns, however, there is a relatively high proportion of head offices
(28%) or independent units (15%) also located within the Estate.
Sixty one percent of companies interviewed indicated that their establishment in RHVBE were
as a result of a relocation process, with a further 22% suggesting they were outgrowing their
premises at the time of relocation, and 7% percent being newly established.
A high 19% of the companies accommodated in RHVBE were established after 2001 and can
therefore be viewed as new or emerging companies. A further 32% of companies were
established between 1991 and 2000, and 39% before 1990.
Nearly 50% of businesses were drawn from areas in close proximity to RHVBE with 24% of
businesses previously located in Springfield Park and 21% located in Durban North.
The Estate is nationally and globally linked with a number of companies being involved in export
and import activities.
From the above it is concluded that the RHVBE, within a short period of time, has established itself
as an integral part of the economic fabric of the eThekwini Municipality.
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CONSIDERING THE IMPACT
This current assessment and previous studies considered the impact of the RHVBE from a number of
perspectives. Each of these perspectives are briefly reflected on below.
Attracting / retaining major companies: The Estate, although not successful in facilitating new
company formation, has succeeded in providing a number of major companies with an alternative
location to consolidate and/or expand its eThekwini operations. Importantly, it also provided
companies with an opportunity to improve operational efficiencies specifically from a logistics
perspective and their corporate image. The move of companies from older industrial and business
estates also established opportunities for the establishment and growth of new and existing
businesses in those areas. The fact that industrial property vacancy rates in eThekwini has
remained low in the recessionary climate suggests that the need for such properties has been
substantial.
Creating and retaining jobs: It was illustrated that the Estate offers in the region of 17 000
employment opportunities, making it one of the major employment nodes in eThekwini. At least 4
200 (approximately 34%) of these jobs were new jobs created as a result of the establishment of the
Estate. The employment created through the construction phase should also be considered in this
regard and is discussed in substantial detail by McCarthy (2009).
Boosting municipal rates: It is estimated that the Estate currently generates annual rates
amounting to R83.5 million. This will increase as the development of sites in the Estate continues.
Facilitating investment: The estimated combined market value of properties in the Estate, based
on the 2012 eThekwini Valuation Roll, is currently set at R3.2 billion. Further investment in the
Estate of R1.2 billion by various industries have been confirmed through the assessment. This
suggests a gearing ratio of nearly 1:15 if the investment of the Joint Venture in terms of
infrastructure is considered against this overall investment (land and management costs are
excluded from this calculation).
Enhancing the urban environment: Through the planning and the various initiatives of the
Management Association, former sugar cane fields are now being rehabilitated and integrated into
the urban environment. Key contributions of the Estate in this regard then includes (1) the
establishment of an aesthetically acceptable business park, including a number of state of the art
facilities with architectural merit, (2) wetland rehabilitation and (3) a range of associated initiatives
as reflected on in reports by the RHVBEMA.
Enhancing urban infrastructure: The development of the Estate not only supports the
densification strategies of eThekwini, but also facilitated the development of critical urban
infrastructure, specifically the construction of Queen Nandi Drive and the access onto the N2 both
contributing to the restructuring of the colonial and apartheid urban landscape by providing
improved linkages between residential and business townships. A contribution is also made to the
more efficient utilisation of existing infrastructure.
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POSSIBLE NEGATIVE IMPACTS OF THE ESTATE
The above, mostly positive impacts, should be considered against the possible negative impacts. To
date the only potential negative impact that could be identified through this assessment is the
impact of this development on neighbouring and other competing business estate developments
brought about by the relocation of businesses to the newer River Horse Valley Business Estate.
From the assessment it is evident that such relocations have taken place. However, in light of low
industrial vacancy rates in eThekwini the impact of this on those areas are not viewed as substantial.
Such relocations also potentially provide quality space for smaller and emerging businesses to grow
into. This impact could be further investigated if high vacancies rates from neighbouring estates can
be confirmed.
ISSUES TO BE ADDRESSED
A number of issues identified through this and previous assessments should continue to be
addressed through the ongoing activities of the Management Association. These include:
Safety and security: This is an ongoing focus of the Management Association and there may be
a need to better understand the concerns of businesses in this regard. It is, however, noted that
levels of reported crime is low and that levels of surveillance is higher than in most similar
development areas.
Transport issues: Various transport issues have been highlighted including congestion on roads,
the lack of coordinated taxi transport and traffic management in general. Most of these issues
are currently being addressed through various initiatives, but with the extent of development in
the area, the strong logistics function and the public nature of Queen Nandi Drive specifically
this aspect will always have to be managed.
Access to facilities: Access to facilities, specifically for staff, has been a key issue to be
addressed highlighted in all previous assessments. To some extent this will be addressed with
the development of two sites by Engen, who will be providing convenience and fast food
outlets, which is currently in planning. Further attention should, however, be afforded towards
planning for this component of the Estate. Considering the number of people employed in the
development and the location of the development further retail development in the area may
present an opportunity.
Corporate social responsibility: It has been confirmed that the current impact of corporate
social responsibility programmes on neighbouring communities are limited. Based on the
responses of companies it is suggested that the potential for a coordinated social responsibility
programme managed by the Association should be considered.
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CONCLUSION
The assessment has confirmed the significant positive impact of the River Horse Valley Business
Estate on investment, job creation, rates generation and urban development. It is suggested that
other investment in strategic infrastructure made by the eThekwini Municipality should also be
evaluated in terms of the identified criteria and that a comprehensive understanding be developed
on what strategies will best support the efforts of national government to create 11 million jobs by
2030. The criteria applied in the case of the River Horse Valley Business Impact Assessment can also
be applied in assessing other investments in eThekwini. This will assist decision-makers in
comparing various investment options.
The criteria to be considered must include the contribution of a development / investment towards:
Attracting / retaining major companies;
Creating and retaining jobs;
Boosting municipal rates;
Facilitating investment;
Enhancing the urban environment; and
Enhancing urban infrastructure.
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TABLE OF CONTENTS
1. INTRODUCTION .......................................................................................................... 1
1.1. PURPOSE OF REPORT ....................................................................................................... 1
1.2. BACKGROUND TO THE RHVBE DEVELOPMENT ............................................................... 1
1.3. THE APPROACH ................................................................................................................ 2
2. FINDINGS FROM PREVIOUS ASSESSMENTS ................................................................ 4
2.1. INTRODUCTION ................................................................................................................ 4
2.2. BASELINE STUDY 1: HOUGHTON (2005) ......................................................................... 4
2.3. BASELINE STUDY 2: FAKISANDLA CONSULTING ASSESSMENT (2007) .......................... 5
2.4. SOCIO-ECONOMIC IMPACTS OF RIVER HORSE VALLEY: JEFF MCCARTHY (2009) ......... 6
2.5. HOUGHTON ON DURBAN PPPS (2010) ............................................................................ 6
2.6. SYNOPSIS .......................................................................................................................... 7
3. THE CONTEXT: INDUSTRIAL PROPERTY IN ETHEKWINI .............................................. 8
3.1. RIVERHORSE VALLEY IN THE ETHEKWINI CONTEXT ...................................................... 8
3.2. FUTURE INDUSTRIAL DEVELOPMENT IN ETHEKWINI ..................................................... 8
3.3. TRENDS IN THE INDUSTRIAL PROPERTY SECTOR ......................................................... 10
4. RHVBE COMPANIES CLASSIFICATION ........................................................................ 11
4.1. INTRODUCTION ............................................................................................................... 11
4.2. COMPANY IN KEY ECONOMIC SECTORS ........................................................................ 11
4.3. A MORE DETAILED CLASSIFICATION OF RHVBE BUSINESSES ...................................... 12
4.4. SYNOPSIS OF BUSINESS TYPES IN THE RHVBE .............................................................. 16
5. ABOUT THE COMPANIES IN RHVBE ............................................................................ 17
5.1. INTRODUCTION ............................................................................................................... 17
5.2. COMPANY TURNOVER .................................................................................................... 17
5.3. LINKAGES OF RHVBE BUSINESS FACILITIES WITH COMPANIES .................................... 18
5.4. NEW COMPANIES VS RELOCATION ................................................................................20
5.5. AGE OF COMPANIES AND FACILITIES .............................................................................20
5.6. SELECTION OF RHVBE AS A LOCATION ..........................................................................22
6. REGIONAL AND GLOBAL LINKAGES ........................................................................... 24
6.1. INTRODUCTION ...............................................................................................................24
6.2. SPATIAL LINKAGES ..........................................................................................................24
6.3. INFRASTRUCTURE LINKAGES ......................................................................................... 25
6.4. EXPORTS .......................................................................................................................... 25
6.5. IMPORTS ......................................................................................................................... 26
6.6. SYNOPSIS ON LINKAGES ................................................................................................ 27
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7. EMPLOYMENT IN THE RHVBE .................................................................................... 28
7.1. INTRODUCTION ...............................................................................................................28
7.2. CONTRIBUTION TO EMPLOYMENT BY RHVBE COMPANIES .........................................28
7.3. THE CONTRIBUTION OF CONTRACTERS TO EMPLOYMENT ......................................... 30
7.4. NEW JOBS ........................................................................................................................ 31
7.5. EMPOWERMENT IN RHVBE ............................................................................................. 32
7.6. SKILL LEVELS EMPLOYED IN THE RHVBE ....................................................................... 33
7.7. FUTURE EMPLOYMENT IN THE RHVBE ........................................................................... 35
7.8. PLACE OF RESIDENCE OF EMPLOYEES .......................................................................... 35
7.9. SYNOPSIS ON FINDINGS RELATING TO EMPLOYMENT ................................................ 36
8. THE FACILITIES OF RHVBE COMPANIES ...................................................................... 38
8.1. INTRODUCTION ............................................................................................................... 38
8.2. OWNERSHIP OF PROPERTIES ......................................................................................... 38
8.3. SPACE OCCUPIED ............................................................................................................ 39
8.4. CAPITAL EXPANSION PLANS ..........................................................................................40
9. URBAN MANAGEMENT CONSIDERATIONS ................................................................. 41
9.1. INTRODUCTION ............................................................................................................... 41
9.2. THE ROLE OF THE MANAGEMENT ASSOCIATION ......................................................... 41
9.3. URBAN MANAGEMENT ISSUES .......................................................................................42
9.4. TRANSPORT RELATED ISSUES ....................................................................................... 44
9.5. CORPORATE SOCIAL RESPONSIBILITY .......................................................................... 44
9.6. SYNOPSIS OF URBAN MANAGEMENT ISSUES .............................................................. 46
10. AN ANALYSIS OF RATES CONTRIBUTIONS ................................................................. 47
10.1. INTRODUCTION ............................................................................................................... 47
10.2. RHVBE RATES INFORMATION ..................................................................................... 47
10.3. CONSIDERING THE IMPLICATIONS ................................................................................ 48
11. CONCLUDING COMMENTS: THE IMPACT OF THE RHVBE ............................................ 49
11.1. INTRODUCTION .............................................................................................................. 49
11.2. CORE FINDINGS .............................................................................................................. 49
11.3. OTHER BASIC FACTS ....................................................................................................... 50
11.4. CONSIDERING THE IMPACT ............................................................................................ 51
11.5. POSSIBLE NEGATIVE IMPACTS OF THE ESTATE ............................................................ 52
11.6. ISSUES TO BE ADDRESSED ............................................................................................. 52
11.7. CONCLUSION ................................................................................................................... 53
Annexure A: Company Questionnaire
Annexure B: Listing of Businesses in the River Horse Valley Business Estate and Interview Status
Annexure C: Activities of the River Horse Valley Business Estate Management Association
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LIST OF MAPS: MAP 3.1: EXISTING AND (PHASING) PLANNED INDUSTRIAL AREAS ............................................................................... 9
MAP 3.2: PROPOSED INDUSTRIAL DEVELOPMENT FOCUS AREAS............................................................................... 10
LIST OF TABLES: TABLE 3.1: OVERVIEW OF INDUSTRIAL LAND IN ETHEKWINI ......................................................................................... 8
TABLE 4.1: SIC LEVEL 1 DISTRIBUTION OF RHVBE COMPANIES INTERVIEWED ............................................................ 12
TABLE 4.2: SIC LEVEL 2 DISTRIBUTION OF RHVBE COMPANIES INTERVIEWED ........................................................... 13
TABLE 4.3: SIC LEVEL 3 DETAILED LISTING OF TYPE (SIC 3 LEVEL) OF COMPANIES INTERVIEWED ............................. 14
TABLE 5.1: TURNOVER CATEGORIES OF RHVBE COMPANIES .......................................................................................17
TABLE 5.2: HEAD OFFICE LOCATION OF RHVBE COMPANIES ....................................................................................... 19
TABLE 7.1: SECTORAL DISTRIBUTION OF EMPLOYMENT IN RHVBE (COMPARED WITH SECTORAL DISTRIBUTION OF
COMPANIES) ................................................................................................................................................................... 29
TABLE 7.2: CONTRACT WORKERS EMPLOYED OVER AND ABOVE FULL-TIME STAFF.................................................. 30
TABLE 7.3: NEW JOBS AS A PERCENTAGE OF TOTAL JOBS........................................................................................... 31
TABLE 7.4: DISTRIBUTION OF NEW JOBS CREATED PER SECTOR ................................................................................. 31
TABLE 7.5: EXTENT OF HDI EMPLOYED IN DIFFERENT SECTORS (50 COMPANIES) ...................................................... 32
TABLE 7.6: EXPERIENCE OF MANUFACTURING WORKERS WHEN RECRUITING – GDMA, 2002/2003 ........................... 34
TABLE 7.7: ANTICIPATED FUTURE EMPLOYMENT GROWTH ......................................................................................... 35
TABLE 7.8: PLACE OF RESIDENCE OF EMPLOYEES ....................................................................................................... 35
TABLE 7.9: THE SPREAD OF EMPLOYMENT ACROSS ETHEKWINI BY TYPE AND NUMBER OF JOBS, 2001 ................... 36
TABLE 9.1: ISSUES TO BE FOCUSSED ON BY THE RHVBE MANAGEMENT ASSOCIATION ............................................ 42
TABLE 10.1: SUMMARY OF ANNUAL RATES PAYABLE FOR RHVBE PROPERTIES ......................................................... 47
LIST OF DIAGRAMS: DIAGRAM 4.1: SIC LEVEL 1 DISTRIBUTION OF RHVBE COMPANIES INTERVIEWED (TOTAL OF 90) .............................. 12
DIAGRAM 5.1: TURNOVER CATEGORIES OF RHVBE COMPANIES ................................................................................. 18
DIAGRAM 5.2: HEAD OFFICE OR BRANCH LOCATED IN RHVBE .................................................................................... 19
DIAGRAM 5.3: RHVBE MOVE: RELOCATION, EXPANSION OR NEW COMPANY ............................................................ 20
DIAGRAM 5.4: AGE OF COMPANIES LOCATED IN RHVBE .............................................................................................. 21
DIAGRAM 5.5: YEAR WHEN COMPANIES ESTABLISHED IN RHVBE ............................................................................... 21
DIAGRAM 5.6: PRIMARY REASONS FOR LOCATING IN RHVBE ...................................................................................... 22
DIAGRAM 5.7: AREAS WHERE FIRMS RELOCATED FROM (TOTAL 66 FIRMS) ................................................................ 23
DIAGRAM 6.1: LOCATION OF MAJORITY OF CUSTOMERS OF RHVBE BUSINESSES ..................................................... 24
DIAGRAM 6.2: NUMBER OF MENTIONS OF CRITICAL LOGISTICS INFRASTRUCTURE ................................................... 25
DIAGRAM 6.3: EXTENT OF EXPORTS BY RHVBE BUSINESSES ....................................................................................... 26
DIAGRAM 6.4: EXTENT OF IMPORTS BY RHVBE BUSINESSES ....................................................................................... 26
DIAGRAM 7.1: SECTORAL DISTRIBUTION OF EMPLOYMENT IN RHVBE (6 125 WORKERS) ........................................... 30
DIAGRAM 7.2: % DISTRIBUTION OF HDI AND NON-HDI STAFF IN SECTORS (50 COMPANIES) ..................................... 32
DIAGRAM 7.3: EMPLOYMENT CATEGORY PER SECTOR IN RHVBE ................................................................................ 33
DIAGRAM 7.4: DISTRIBUTION OF HDI EMPLOYMENT PER CATEGORY AND SECTOR ................................................... 34
DIAGRAM 8.1: COMPANIES THAT OWN OR LEASE FACILITIES...................................................................................... 38
DIAGRAM 8.2: OWNERSHIP OF FACILITIES IN DIFFERENT TURNOVER CATEGORIES ................................................... 39
DIAGRAM 8.3: APPROXIMATE DISTRIBUTION OF BUILDING SPACE (IN M2) .................................................................. 40
DIAGRAM 9.1: RESPONDENTS KNOWING WHERE RHVBE MANAGEMENT OFFICES ARE LOCATED ........................... 41
DIAGRAM 9.2: RATING OF URBAN MANAGEMENT ISSUES BASED ON PERCEPTION OF RESPONSDENTS ................. 43
DIAGRAM 9.3: PERCEIVED TRAFFIC MANAGEMENT ISSUES ........................................................................................ 44
DIAGRAM 9.4: COMPANIES WITH CORPORATE SOCIAL RESPONSIBILITY PROGRAMMES IN PLACE........................... 45
DIAGRAM 9.5: COMPANIES INTERESTED IN PARTICIPATING IN RHBVE FOCUSSED CORPORATE SOCIAL
RESPONSIBILITY PROGRAMMES .................................................................................................................................... 45
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1. INTRODUCTION
1.1. PURPOSE OF REPORT
Following the successful sale of all properties in the business estate the eThekwini Municipality
commissioned this study to determine the socio-economic impact of the River Horse Valley
Business Estate (RHVBE) on the immediate site and surrounds and the eThekwini economy at large.
This study was being undertaken in partnership with Tongaat Hulett Developments and the RHVBE
Management Association.
The objectives for the study were firstly to confirm the impact to date of the RHVBE in terms of the
local economy, employment and investment and, secondly, to provide urban management
decision-makers with a better understanding of what can be done to further support the growth of
businesses, employment and opportunities in River Horse Valley.
This report reflects on the findings of the impact assessment.
1.2. BACKGROUND TO THE RHVBE DEVELOPMENT
The Effingham Development Joint Venture between the eThekwini Municipality and Tongaat
Hulett set out in 2000 to establish the RHVBE. The Estate is now well established and thriving with
all 100 properties in the development sold and nearly 180 businesses established in the area. This
development is unique and trendsetting in a number of ways. With construction costs of R1.6 billion
it is one of the biggest successful public-private sector initiatives of its kind in KwaZulu-Natal.
Although not a gated or security estate it has introduced and embraced the concept of a
management association for the area with the RHVBEMA now in operation for 9 years, continuing
to set new standards in urban management. The manner in which sustainability issues are being
addressed and the positive contribution being made to the green environment of eThekwini further
sets this development apart.
Other successes include the work that commenced recently to upgrade Queen Nandi Drive and
various other initiatives of the RHVBEMA, the forthcoming rehabilitation of 41 hectares of wetland,
a R750 000 indigenous tree planting programme, addressing public transport issues and the general
management of the area by the RHVBEMA. The estate is setting new benchmarks in the
development and management of business estates. It has received numerous awards from the
property and business communities.
As indicated, the beginnings of RHVBE are traced to 2000. The process got underway with the
rezoning of low-yielding agricultural land to Special Zone 64 providing for industrial, commercial,
mixed use and residential uses. The Joint Venture was premised on an original plan that assessed
the site according to the following criteria (Moreland 2002, as in Fakisandla 2007):
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Indications of long term financial viability;
Support for investment projects that would improve environmental performance, based on a
number of commitments to improving the environment in and around the development, including
the protection of the river and the wetland;
Conformity to development policies and land use planning strategies, whereby under-utilized land
is put to more effective use in the interests of development; employment opportunities are brought
closer to job seekers; and conformity to the IDP for eThekwini;
Support for the development of industrial areas for strategic economic advantages, i.e. strategic
location with regard to the DMA; facilitation of economic growth of the sub region and arterial
access in all directions to interface with other business nodes; and the expansion of the rates and
services charge base for the city;
Support for projects that are internationally cost competitive;
Support for enterprises that offer direct and indirect employment opportunities, with an anticipated
3500 jobs created in the building phase and 13500 jobs in the post building phase; and that bring
job opportunities closer to the Inanda, Ntuzuma, KwaMashu ( INK) area where unemployment
levels are high;
Support for opportunities to develop linkages – upstream and downstream by providing a range of
opportunities for entrepreneurship in the sub region; as well as linkages geographically and by
virtue of mixed usage; and
Support for opportunities for growth of small to medium enterprises by providing facilities based on
requirements ranging from 1.2ha to 4 ha in a mixed use RHVBE that is well-placed and well-
resourced.
1.3. THE APPROACH
The overall stated objective for the study is to confirm the impact of the River Horse Valley Business
Estate in terms of:
The local economy;
Employment; and
Investment.
The approach to this impact assessment was based on the discussions with stakeholders at the
meeting held at the offices of Tongaat Hulett on 14 June 2012. The meeting was attended by
representatives of the Economic Development Unit of eThekwini, Tongaat Hulett, the River Horse
Valley Business Management Association (RHVBMA) and the Project Team (StratPlan).
The approach included a number of broad actions, viz.
Preparation, which included meetings with stakeholders, the finalisation of the process plan;
Developing a RHVBE business database;
Finalising the questionnaire;
Conduct pilot questionnaire;
Collect other relevant and business data;
Conduct surveys / interviews; and
Data analysis and report writing.
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The steps are expanded on below.
Preparation: A Technical Committee including representatives of eThekwini Municipality,
Tongaat Hulett, RHVBE Management Association and the Project Team was established and
guided the preparation phase of the study.
Collect other relevant and business data: Previous studies relating to the RHVBE was collected
and these informed the development of the questionnaire and the approach. Information
relating to the rates and other general information were also gathered in the process.
Developing a RHVBE business database: The first challenge was to develop / obtain a database
of all businesses in the Estate. The Management Association their current distribution list
available and this was used as the basis. Of the businesses identified some 16 businesses were
confirmed to have either left River Horse Valley recently or to not be located in the Estate, but
delivering a property management services in the area. A total of 173 businesses were therefore
targeted in the survey process.
Finalising the questionnaire: Through engagement with the Technical Committee a draft
questionnaire was compile. The questionnaire was piloted with three companies in the RHVBE
and adjusted based on the outcome of the pilot survey. The final questionnaire is attached as
Annexure A.
Conduct surveys / interviews: All 173 identified companies were targeted in the survey process.
The survey process was undertaken over an extended period from mid-July to mid-September,
as opposed to the anticipated survey process of one month. All companies on the database
were contacted through both bulk emails and personal telephonic follow ups. Ninety
companies engaged in the survey process either through direct interaction, telephonic
interviews or by completing the questionnaires internally. An alphabetical list of the companies
targeted and the interview status is attached as Annexure B.
Data analysis and report writing: The information collected through the questionnaires was
captured in a database and quality of information was checked. The information was analysed
and the report prepared.
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2. FINDINGS FROM PREVIOUS ASSESSMENTS
2.1. INTRODUCTION
Before engaging with the findings of the current survey process it is worthwhile to reflect on some
of the key findings emanating from previous assessments undertaken of the general impact of the
Estate on the local and regional economic landscape. Four studies / reports were identified:
Houghton J. 2005. Baseline Study: River horse Valley Business Estate.
Fakisandla Consulting, 2007. River Horse Valley Business Estate: An Updated Baseline Study.
McCarthy J. 2009. Socio-economic Impacts of River horse Valley.
Houghton J. 2010. Negotiating the Global and the Local: Evaluating Development Through
Public-Private Partnerships in Durban, South Africa.
Basic findings from these reports are shared below. It should be noted that both the baseline
studies (Houghton 2005, Fakisandla 2007) included primary research, but that at the time of the
surveys being conducted the number of companies in the Estate was limited. The 2005 study by
Houghton surveyed 13 companies. The 2007 study acknowledges some 78 companies and
interviewed 21. Neither study did a full classification of businesses interviewed. The current study
expanded specifically on this aspect of development in the Estate.
2.2. BASELINE STUDY 1: HOUGHTON (2005)
Key findings from the study conducted by Houghton (2005) included:
The majority of companies are well established and have relocated to the Estate from elsewhere in
Durban.
Most companies are branches of national or multi-national companies.
The economic linkages extending from the few businesses already located in RHV are expansive
and point towards the formation of stronger and more extensive economic networks from within
the Estate as the area continues to develop.
Few linkages exist between businesses within RHV, although this can be attributed to the small
number of companies and to the current lack of intersection between products and services offered
and required by companies.
Although there is much spatial variation in the location of residential areas across the urban area,
there is evidence of a pattern of residential clustering of employees in areas surrounding RHV.
Negative aspects of RHV effect employees directly rather than impacting on companies.
Public transport services and a lack of food and shopping outlets (including the petroports) are key
problems within the estate. In this case it is important to recognize that the goals of the
development should not be merely about providing employment but should address the quality of
employment and the need to facilitate a good working environment, for example difficult access to
the site drains the resources of employees and creates frustration and even endangerment. This in
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turn feeds back into worker’s benefits, and their satisfaction and productivity which can become
detrimental to employers.
Overall businesses have found the area to be highly satisfactory. Key benefits of the estate for
businesses were found to be accessible to the highways, the opportunity to expand their facilities
on large, custom built sites and the boosted image of the company through the positive image of
the developing area. On the part of employees, the quality of the environment in RHV was found to
be the greatest benefit of the area.
2.3. BASELINE STUDY 2: FAKISANDLA CONSULTING ASSESSMENT (2007)
The 2007, the Fakisandla report, commissioned by Tongaat-Hulett, concluded amongst other
things the following:
The commercial sector is the “... best-represented sector” within the estate;
A number of companies now located in the estate have consolidated local branches or
amalgamated different divisions;
In 2007 it was estimated that there were 4 000 employees at River horse Valley with 85% being
permanent;
The perception of the development by neighbouring communities was found to be “neutral or
negative” as a result of issues such as noise pollution, visual impact and damage during the
construction period;
The positive aspects that were mentioned by people from neighbouring communities included
the potential rise in property values, increased security and the additional business to local
shops;
Other findings that emerged included:
o the lack of evidence that Black Economic Empowerment has been addressed with
regard to land ownership, tenancy and business operation;
o the limited evidence that neighbouring communities benefitted; and
o the inadequacy of social responsibility programmes of companies.
Based on the findings of this assessment a number of recommendations were made. As a starting
point it was acknowledged that a Management Association has “the potential to play a pivotal role in
maintaining the reputation that River Horse Valley has as a well-managed, attractive and desirable
industrial estate”. Concerns were expressed by participants in that survey that the overall
management of the estate will deteriorate once Tongaat-Hulett withdraws from the Estate.
The three core recommendations that emerged from the assessment were that:
a Management Association could play a useful role in the facilitation of “a number of
improvements, including identifying and designing effective social responsibility programmes;
fostering internal linkages; assisting in the coordination of employment initiatives designed to
benefit local communities, and managing the unique environmental features of the place”.
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The provision of public amenities, including food outlets, banking facilities and petrol stations, as
well as leisure space and a clinic.
The potential for promoting SMME opportunities within River Horse Valley, again considering a
range of relevant opportunities, as well as the setting up of a private transport system consisting of
taxi and bus routes.
2.4. SOCIO-ECONOMIC IMPACTS OF RIVER HORSE VALLEY: JEFF MCCARTHY
(2009)
In 2009, Professor Jeff McCarthy, based on the 2007 baseline study, indicated that some 4000
permanent job opportunities have been established and that, when the estate reaches full capacity,
this could be as high as 10 000 permanent jobs. It was suggested that a significant portion of these
will be new jobs.
Other potential benefits for eThekwini was deemed to be:
Rates income in the region of R45 million per annum;
VAT raised during the construction phase;
Tax yields on wages and company profits;
Concludes that “...when viewed from the perspective of metropolitan citizens and ratepayers as a
whole, good social (e.g. jobs, enhanced metropolitan accessibility) and financial (e.g. rates and
taxes) returns have been received in relation to the public outlays”.
2.5. HOUGHTON ON DURBAN PPPS (2010)
Houghton (2010) suggests that the RHVBE was developed “…to contribute to meeting the overall
development goals of the eThekwini Municipal Area”. She lists these goals as including:
The strengthening of the urban economy (by encouraging private investment and economic
diversification);
The growth of employment opportunities, particularly amongst the previously disadvantaged;
Improving service delivery;
Reduce poverty; and
Uplift the quality of life of residents.
She concludes that based on her analysis “the present nature of the estate contributes minimally to
the achievement of these goals, particularly those related to social justice”.
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2.6. SYNOPSIS
All the studies comment positively on the contribution of the Estate in terms of strengthening the
economy, job creation and improvement of the urban environment. Houghton (2010) based on her
assessment of PPPs, however, believes that specifically the goals related to “social justice” have not
been achieved.
The baseline studies also make various recommendations of issues to be addressed:
The encouragement of SMMEs to locate in the area;
A greater focus on Black Economic Empowerment;
Providing accessible facilities for workers in the estate, e.g. shops, restaurants and
opportunities for leisure;
The setting up (Houghton 2005) and the strengthening (Fakisandla 2007) of the Business
Association.
The findings of the various assessments will be commented on in terms of the more detailed
findings of the current assessment.
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3. THE CONTEXT: INDUSTRIAL PROPERTY IN ETHEKWINI
3.1. RIVERHORSE VALLEY IN THE ETHEKWINI CONTEXT
The establishment of River Horse Valley Business Estate was initiated before 1994 and since then
the country has experienced two significant economic downturns, viz. in the early 2000s and the
late 2000s. The establishment of the estate was therefore a long term planning decision not
influenced by short term dynamics in the economy.
The establishment of River Horse Valley Business Estate was conceptualised out of recognition of
the significant demand for well-located land for industrial, logistics and business purposes in the
eThekwini Municipality. Other industrial nodes of note developed in the past two decades in
eThekwini included the Southgate Industrial Park, Mahogany Ridge and Springfield Park, all of
these located in central, southern and western parts of eThekwini, not relating to the major
development corridor to the north of Durban. River Horse Valley was intended to fill this gap.
EThekwini statistics on industrial land suggests that the contribution of industrial land to the north
of Durban is limited, this despite the strong anticipated growth in this corridor. This is reflected in
Table 3.1.
TABLE 3.1: OVERVIEW OF INDUSTRIAL LAND IN ETHEKWINI
AREA LAND
ZONED (HA)
LAND OCCUPIED
(HA)
% OF ZONED LAND
OCCUPIED (HA)
ZONED LAND
AVAILABLE (HA)
% OF LAND AVAILABLE
(HA)
% OF TOTAL ZONED
AREA AVAILABLE
South Durban Basin 1667.3 1541.2 92% 136.1 8% 8.4%
Inner West 1367 1111.8 81.30% 255.2 18.70% 15.8%
Outer West 1455.5 547 37.60% 908.5 62.40% 56.4%
Durban Central 1540.8 1540.5 99.99% 0.2 0.01% 0.0%
North 1045.6 733.9 70.20% 311.7 29.80% 19.3%
TOTALS
1611.7
100.0%
Source: eThekwini 2009
3.2. FUTURE INDUSTRIAL DEVELOPMENT IN ETHEKWINI
The Industrial Spatial Strategy (2009) of the eThekwini Municipality also places the River Horse
Valley Estate in the context of future anticipated industrial development. The distribution of
existing industrial areas and the phasing of proposed future industrial nodal development are
reflected in the Map below.
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MAP 3.1: EXISTING AND (PHASING) PLANNED INDUSTRIAL AREAS
Source: eThekwini Industrial Spatial Strategy 2009
It is evident from the above, firstly, that the bulk of industrial land in eThekwini is located to the
south and west of Durban, with Springfield Park, Phoenix Industrial and River Horse Valley making
up the bulk of the industrial land located to the north of Durban. However, a number of short,
medium and long term opportunities for industrial development are reflected on the above
eThekwini Industrial Spatial Strategy (2009). It is anticipated that in the longer term the
development of these industrial areas could further strengthen the position of the River Horse
Valley Business Estate.
As the status of the Industrial Spatial Strategy could not be confirmed, the above proposals and
phasing should be viewed as recommendations. In a similar fashion the map overleaf provides
recommendations on the proposed focus areas for future industrial development. The focus
proposed for the northern corridor, in which the RHVBE is located, being on logistics, light industrial
and warehousing.
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MAP 3.2: PROPOSED INDUSTRIAL DEVELOPMENT FOCUS AREAS
Source: eThekwini Industrial Spatial Strategy 2009
3.3. TRENDS IN THE INDUSTRIAL PROPERTY SECTOR
The general trend currently is for increasing vacancies in the industrial property sector in most
industrial conurbations in South Africa. Rode (2010) reports on this as follows: “The effects of softer
economic activity on the demand for industrial space to rent, and consequently market rentals, are
becoming strikingly evident.... evident .... is how industrial vacancies generally moved north in all of the
major industrial conurbations. As in the third quarter of 2009, vacancies stood at between 2 and 3,5 on
the Rode scale of 0 to 9. This equates to percentage vacancies of roughly between 3,5% and 8,2%”.
The 2011 Broll Property Report on the Durban industrial property sector, however, suggests that
“conditions in the Durban industrial market have remained largely unchanged in the last 12
months”. The Broll report, however, notes that there ”is still a gap for large high-quality
warehousing space”. It is, however, suggested that the prevailing economic conditions are
preventing developers from expanding their portfolios. Umhlanga and the industrial nodes to the
south of the city is viewed as the most popular industrial nodes at present. It is further noted that
the projected economic growth around the King Shaka Airport has not materialised, and this is
attributed to the downturn in global markets and the subsequent knock-on effect this has had on
exports.
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4. RHVBE COMPANIES CLASSIFICATION
4.1. INTRODUCTION
A 2002 presentation by the RHVBE project partners, Tongaat Hulett and eThekwini, suggests the
following distribution of land uses in the then anticipated 167 ha development of the River Horse
Valley Business Estate:
Industrial - 97ha
Mixed use - 26 ha
Direct Access Service Centre - 4ha
Residential - 40ha
The presentation further identifies permissible land uses as being “retail public, retail semi public,
office, high-tech industry, light service industry, warehousing, medical and residential which is
aimed specifically at the small to medium industry”.
This then provides the context for considering the nature of the businesses that settled in the
RHVBE development area.
4.2. COMPANY IN KEY ECONOMIC SECTORS
A total of 173 active companies were confirmed in the RHVBE and 52%, a total of 90, of the
confirmed businesses participated in the survey. As part of the survey companies were requested
to indicate the products or services offered. The information on products and services was used as
a basis for classifying the companies in terms of the Standard Industrial Classification (SIC Codes) to
a 3-digit level. The diagrams and tables that follow present an analysis of companies in the RHBVE
based on this standard industrial classification. A more detailed listing of companies interviewed is
presented in Annexure B.
Diagram 4.1 and Table 4.1 overleaf reflects on the distribution of companies based on the 1 digit SIC
classification. The diagram and table reflect that close to 50% of the businesses in the RHVBE are
classified as being engaged in the wholesale and retail trade category. Twenty one percent are
manufacturing orientated and a further 20% can be categorised as transport, storage and
communication businesses. The other 10% of businesses offer financial or business services,
community, social and personal services, and construction services.
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DIAGRAM 4.1: SIC LEVEL 1 DISTRIBUTION OF RHVBE COMPANIES INTERVIEWED (TOTAL OF 90)
TABLE 4.1: SIC LEVEL 1 DISTRIBUTION OF RHVBE COMPANIES INTERVIEWED
SECTOR COMPANIES
INTERVIEWED
% OF TOTAL
INTERVIEWED
Wholesale and Retail Trade; Repair of various; Hotels and Restaurants 44 49%
Manufacturing 19 21%
Transport, Storage and Communication 18 20%
Financial and Other Business Services 6 7%
Community, Social and Personal Services 2 2%
Construction 1 1%
TOTAL 90 100%
4.3. A MORE DETAILED CLASSIFICATION OF RHVBE BUSINESSES
Table 4.2 and 4.3 present the categorisation of RHVBE businesses on a SIC level 2 and 3
categorisation. Table 4.2 is general in nature and only provides a basic sense of the distribution of
companies within the main economic sectors. However, from Table 4.3 presenting the SIC level 3
categorisation, the clustering of specific categories of companies become clearly evident.
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TABLE 4.2: SIC LEVEL 2 DISTRIBUTION OF RHVBE COMPANIES INTERVIEWED
SECTOR COMPANIES
INTERVIEWED % OF TOTAL
WHOLESALE AND RETAIL TRADE; REPAIR OF VARIOUS; HOTELS
AND RESTAURANTS 44
Wholesale Trade and Commission Trade, Except of Motor Vehicles and
Motor Cycles 22 24%
Retail Trade 14 16%
Sale, maintenance and repair of motor vehicles and motor cycles; retail
trade in automotive fuels 8 9%
MANUFACTURING 19
Manufacture of Basic Metals etc 6 7%
Manufacture of Food Products, Beverages and Tobacco Products 4 4%
Manufacture of Coke, Refined Petroleum Products and Nuclear Fuel;
Manufacture of Chemicals and Chemical Products; Manufacture of
Rubber and Plastic Products
3 3%
Manufacture of Wood and Products of Wood etc 2 2%
Manufacture of Various Products 2 2%
Manufacture of Transport Equipment 1 1%
Manufacture of Textiles, Clothing and Leather Goods 1 1%
TRANSPORT, STORAGE AND COMMUNICATION 18
Post and Telecommunications 13 14%
Land Transport; Transport via Pipelines 3 3%
Supporting and Auxiliary Transport Activities 2 2%
FINANCIAL AND OTHER BUSINESS SERVICES 6
Other Business Activities 4 4%
Real Estate Activities 1 1%
Computer and Related Activities 1 1%
COMMUNITY, SOCIAL AND PERSONAL SERVICES 2
Health and Social Work 1 1%
Education 1 1%
CONSTRUCTION 1
Construction 1 1%
TOTAL 90 100%
The above illustrates that both wholesale and retail trade are prominent business categories in the
RHVBE. A range of manufacturing sector activities is also located in the RHVBE and post and
telecommunications is starting to emerge as a sector. Table 4.3 below unpacks this in more detail.
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TABLE 4.3: SIC LEVEL 3 DETAILED LISTING OF TYPE (SIC 3 LEVEL) OF COMPANIES INTERVIEWED
SECTOR NUMBER OF
COMPANIES % OF TOTAL
WHOLESALE TRADE AND COMMISSION TRADE, EXCEPT OF MOTOR
VEHICLES AND MOTOR CYCLES 22
Wholesale trade in machinery, equipment and supplies 13 14%
Wholesale of non-agricultural intermediate products, waste and scrap 4 4%
Wholesale of household goods 2 2%
Wholesale of Other Household Goods 2 2%
Wholesale Trade on a Fee or Contract Basis or Commission Basis 1 1%
RETAIL TRADE 14
Other Retail Trade in New Goods in Specialised Stores 14 16%
POST AND TELECOMMUNICATIONS 13
Post and Associated Courier Activities 9 10%
Telecommunications 4 4%
SALE, MAINTENANCE AND REPAIR OF MOTOR VEHICLES AND
MOTOR CYCLES; RETAIL TRADE IN AUTOMOTIVE FUELS 8
Sale of Motor Vehicle Parts and Accessories 3 3%
Maintenance and Repair of Motor Vehicles 3 3%
Sale of Motor Vehicles 1 1%
Retail Sale of Automotive Fuel 1 1%
MANUFACTURE OF BASIC METALS ETC 6
Manufacture of Basic Iron and Steel 3 3%
Manufacture of General Purpose Machinery 2 2%
Manufacture of Other Fabricated Metal Products; Metalwork Service
Activities 1 1%
OTHER BUSINESS ACTIVITIES 4
Advertising 3 3%
Business activities nec 1 1%
MANUFACTURE OF FOOD PRODUCTS, BEVERAGES AND TOBACCO
PRODUCTS 4
Manufacture of Other Food Products 4 4%
LAND TRANSPORT; TRANSPORT VIA PIPELINES 3
Other Land Transport 3 3%
MANUFACTURE OF COKE, REFINED PETROLEUM PRODUCST AND
NUCLEAR FUEL; MANUFACTURE OF CHEMICALS AND CHEMICAL
PRODUCTS; MANUFACTURE OF RUBBER AND PLASTIC PRODUCTS
3
Manufacturing of plastic products 3 3%
MANUFACTURE OF VARIOUS PRODUCTS 2
Publishing 2 2%
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SECTOR NUMBER OF
COMPANIES % OF TOTAL
MANUFACTURE OF WOOD AND PRODUCTS OF WOOD ETC 2
Printing and Services Related to Printing 1 1%
Manufacture of Products of Wood etc 1 1%
SUPPORTING AND AUXILLARY TRANSPORT ACTIVITIES 2
Supporting and Auxillary Transport Activities 2 2%
EDUCATION 1
Educational Services 1 1%
CONSTRUCTION 1
Building of Complete Constructions or Parts Thereof, Civil Engineering 1 1%
HEALTH AND SOCIAL WORK 1
Human Health Activities 1 1%
COMPUTER AND RELATED ACTIVITIES 1
Other Computer Related Activities 1 1%
REAL ESTATE ACTIVITIES 1
Real Estate Activities with Own or Leased Property 1 1%
MANUFACTURE OF TEXTILES, CLOTHING AND LEATHER GOODS 1
Manufacture of wearing apparel 1 1%
MANUFACTURE OF TRANSPORT EQUIPMENT 1
Building and Repairing of Ships and Boats 1 1%
TOTAL 90 100%
From the analysis in Table 4.3 three clusters of businesses that appear to be prominent in the
RHVBE emerge, viz.
The wholesale trade in machinery, equipment and supplies (14% of companies);
Other retail trade in specialised goods (16%); and
Post and associated courier services (10%).
There also appear to be smaller clusters of manufacturing activity which include the manufacturing
of products from basic metals (6%), manufacturing of plastic products (3%) and a range of other
specialised manufacturing activities.
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4.4. SYNOPSIS OF BUSINESS TYPES IN THE RHVBE
The 2007 Updated Baseline Study (Fakisandla 2007) stresses the important contribution that it is
anticipated the RHVBE will make to augmenting the supply of industrial land in eThekwini. The
2002 presentation referred to in previous sections also suggested a strong focus on industrial
development in the Estate. The above analysis, however, illustrated that the profile of businesses
that located in the Estate is complex and that a number of major economic sectors are well
represented. Manufacturing industry makes up 20% of businesses located in the Estate.
Whereas, the initial focus of the development was then perceived to be to address the shortage of
well-located industrial land in eThekwini, the results of the above assessment suggests a more
general shortage of well-located land for business development. This is perhaps most clearly
illustrated by the successful development of the eThekwini Hospital and Heart Centre in the
RHVBE, the location of the Mr Price Distribution Centre, as well as the Estate being selected by
several national and international courier and logistics companies as the most appropriate location
for their activities. Considering the multi-use nature of development in the RHBVE, the extent to
which the need for industrial land in eThekwini are being addressed, should then be considered.
It is expected that a future assessment and comparison of the business profiles of the RHVBE,
Mahogany Ridge and Southgate estates will provide an even better perspective on industrial,
business and logistics development in eThekwini over the past decade. Such an assessment should
also provide critical clues as to where the future focus for business estate development should be.
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5. ABOUT THE COMPANIES IN RHVBE
5.1. INTRODUCTION
The companies located in the RHVBE have a unique set of characteristics. These characteristics of
companies will generally determine the future impact of the development on economic and socio-
economic development in eThekwini and should therefore be better understood. The sections that
follow consider:
The size of companies based on turnover categories;
Linkages of RHVBE business facilities to companies;
New companies versus relocations;
Age of companies and facilities;
Reasons for selection of RHVBE as a business location; and
Spatial linkages.
5.2. COMPANY TURNOVER
As a result of the range of development options allowed for in the RHVBE the table below illustrates
the range of company sizes, based on turnover, located in the Estate.
TABLE 5.1: TURNOVER CATEGORIES OF RHVBE COMPANIES
TURNOVER CATEGORY NO. OF COMPANIES PERCENTAGE OF
COMPANIES
R1m to R5m 7 11%
R5m to R50m 21 34%
R50m to R100m 12 19%
R100m to R500m 11 18%
R500m to R1000m 4 6%
R1000m to R2000m 0 0%
R2000m to R5000m 2 3%
R5000m> 5 8%
TOTAL RESPONSES 62 100%
Of the 62 companies that provided turnover related information nearly a third falls within the R5
million to R50 million per annum turnover category, with another third in the category R50 million
to R500 million. Five companies indicated an annual turnover of more than R5 billion. (As the five
are branches of larger businesses it is generally assumed that this turnover relates to the larger
companies and not to the turnover achieved at the RHVBE facilities. However, this provides an
indication of the size of companies establishing in the Estate).
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Eleven percent of companies in RHVBE are smaller companies with a turnover of less than R5
million suggesting that the Estate also provides opportunities for the establishment and growth of
SMMEs and that this category of business is not excluded from the benefits offered by the Estate.
DIAGRAM 5.1: TURNOVER CATEGORIES OF RHVBE COMPANIES
5.3. LINKAGES OF RHVBE BUSINESS FACILITIES WITH COMPANIES
It is often suggested that KwaZulu-Natal is a branch economy with company head offices located
elsewhere. This statement was tested through the survey by establishing whether facilities in
RHVBE represented head offices, branches, independent units or subsidiaries. Diagram 5.2 overleaf
reflects on the findings.
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DIAGRAM 5.2: HEAD OFFICE OR BRANCH LOCATED IN RHVBE
It is evident from Diagram 5.2 that the majority of facilities in RHVBE are branches representing
larger business concerns in the Durban area. However, there is a relatively high proportion of head
offices (28%) or independent units (15%) also located within the Estate. Even if this relates
primarily to smaller companies it still provides an indication that a vibrant and independent
economy has been, or is in the process of being, established in the RHVBE.
Of the companies that indicated that they do report to a head office located elsewhere, the
majority, or 66%, relates to head offices located in Gauteng. Eleven percent of RHVBE facilities
relate to head offices in the Western Cape. A further 15% of companies have head offices
elsewhere in KwaZulu-Natal, i.e. outside of the Estate in Durban and Pietermaritzburg. Three
companies, representing approximately 6%, have international head offices.
TABLE 5.2: HEAD OFFICE LOCATION OF RHVBE COMPANIES
HEAD OFFICE LOCATION NO OF COMPANIES % OF COMPANIES
Gauteng 31 66%
Western Cape 5 11%
Durban 5 9%
Pietermaritzburg 3 6%
USA 1 2%
Germany 1 2%
Denmark 1 2%
TOTAL 47 100%
From the above it is concluded that a relatively high percentage of RHVBE facilities accommodate
head office functions, potentially higher than other business park developments in eThekwini (this
can however only be verified through further research). However, RHVBE companies also have
strong national, and in some cases international, ownership linkages.
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5.4. NEW COMPANIES VS RELOCATION
The extent to which the RHVBE contributed to economic growth through the establishment of new
businesses and new job opportunities has been questioned in the past (Houghton 2010).
Companies interviewed were requested to indicate whether their establishment in RHVBE was the
result of relocation, expansion or the establishment of a new company. Diagram 5.3 reflects on the
responses received.
DIAGRAM 5.3: RHVBE MOVE: RELOCATION, EXPANSION OR NEW COMPANY
Sixty one percent of companies interviewed indicated that their establishment in RHVBE were as a
result of a relocation process (reasons for this relocation is reflected on in more detail below).
Twenty two percent of companies suggested that they were outgrowing their premises at the time,
and that larger facilities were required. Only seven percent of companies indicated that they were
newly established in the Estate and did not relocate from elsewhere.
5.5. AGE OF COMPANIES AND FACILITIES
As indicated above, the companies in RHVBE are generally not new companies and have been
operating for a longer period of time. Diagram 5.4 reflects on when the companies were
established. The companies are grouped into three categories, i.e. established before and up to
1990, between 1991 and 2000 and between 2001 and the 2010.
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DIAGRAM 5.4: AGE OF COMPANIES LOCATED IN RHVBE
Nineteen percent of the companies accommodated in RHVBE were established after 2001 and can
therefore be viewed as new companies. A further 32% of companies were established between
1991 and 2000. Thirty nine percent of companies currently located in the RHVBE were established
before 1990. The overall picture is, however, a picture of a business estate with a balanced mix of
old and new companies, the older companies bringing with it the stability, while the newer
companies bring the growth, innovation and vibrancy to the mix.
Diagram 5.5 considers the years in which the companies interviewed were established in the
RHVBE.
DIAGRAM 5.5: YEAR WHEN COMPANIES ESTABLISHED IN RHVBE
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The majority of the companies interviewed were established in RHBVE between 2006 and 2009.
This is viewed as a relatively short period of time for a development of this nature to move from
establishment to nearly full occupation, partly confirming the success of the development. This
must then also be viewed as an indication of the substantial demand for well located and modern
business park developments in eThekwini.
5.6. SELECTION OF RHVBE AS A LOCATION
Diagram 5.6 below confirms that location was the primary reason for companies locating in the
RHVBE. A large number of companies, however, also indicated that they needed new premises for
either expansion or consolidation of current business activities. A smaller percentage of companies
also viewed the acquisition of property in River Horse Valley as an investment opportunity.
DIAGRAM 5.6: PRIMARY REASONS FOR LOCATING IN RHVBE
Considering the primary reasons for businesses locating in RHVBE must then be viewed in the
context of where businesses were drawn. The information for 66 of the interviewed firms is
reflected in Diagram 5.7 below.
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DIAGRAM 5.7: AREAS WHERE FIRMS RELOCATED FROM (TOTAL 66 FIRMS)
Diagram 5.7 confirms that nearly 50% of businesses were drawn from areas in close proximity to
RHVBE with 24% from Springfield Park and 21% from Durban North. Considering the close
proximity and the cost of resettlement it can be concluded that the advantages for companies to
resettle in RHVBE must have been considerable.
RHVBE attracting companies from the Congella, Berea, Umgeni Road, Durban Central and Jacobs
areas are easier understood. Most of these areas face challenges in terms of urban management,
lack of space and accessibility.
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6. REGIONAL AND GLOBAL LINKAGES
6.1. INTRODUCTION
In economic development planning substantial emphasis is placed on areas linking into the global
economy. Generally the ability of national and regional economies to integrate into the global
economy is viewed as a key factor in determining the health of the economy. As a new business
park development it is then important to consider the contribution that the RHBVE is making
regionally, nationally and globally in linking the Durban economy.
6.2. SPATIAL LINKAGES
From the survey findings it was established that the majority of companies located in the RHVBE
serve a wider area than Durban. Diagram 6.1 below indicates that only 11% of companies
interviewed have a narrower Durban focus, with 33% of companies serving the whole of KwaZulu-
Natal and at least 33% serving customers in various parts of South Africa. Eight percent of
companies interviewed indicated that the majority of the customers making use of their products or
services are located internationally.
DIAGRAM 6.1: LOCATION OF MAJORITY OF CUSTOMERS OF RHVBE BUSINESSES
Note: The “various” category includes companies that do not fit clearly into any of the other categories.
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6.3. INFRASTRUCTURE LINKAGES
Respondents were requested to indicate what major logistics infrastructure is critical to the
operations of their businesses. More than one component of infrastructure could be mentioned.
Diagram 6.2 reflects on the responses.
DIAGRAM 6.2: NUMBER OF MENTIONS OF CRITICAL LOGISTICS INFRASTRUCTURE
As would have been anticipated, more than 50% of companies indicate the critical nature of road
infrastructure for their operations. However, from the above it is also evident that the harbour and
the Dube Trade Port are both critical to the location decision-making of businesses in River Horse
Valley with the Dube Trade Port / King Shaka Airport receiving 23% of the mentions and the
harbour mentioned as being important to 25 companies or receiving 20% of the mentions.
6.4. EXPORTS
Nearly a third of the businesses interviewed indicated that they do export product / services. The
majority of these companies cannot be classified as exporters as a relatively small proportion of
their product / service is delivered to the global market. The diagram below, however, reflects that
61% of RHVBE companies interviewed indicated that they are not involved in any export activities.
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DIAGRAM 6.3: EXTENT OF EXPORTS BY RHVBE BUSINESSES
Four of the companies, translating to approximately 4% of companies in the RHVBE, can be
classified as exporters with more than 50% of their product / service being exported. This low
number potentially relates to the low number of manufacturing companies located in the Estate.
6.5. IMPORTS
The diagram relating to imports below, if compared to the information on exports above, provides a
different picture. No less than 20% of the companies interviewed indicated that they import more
than 50% of their basic inputs / products, with a further 22% involved in some import activity. This
translates to nearly 50% of companies interviewed being involved in import activities.
DIAGRAM 6.4: EXTENT OF IMPORTS BY RHVBE BUSINESSES
This supports findings confirming the importance of specifically the harbour as strategic
infrastructure for RHVBE businesses.
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6.6. SYNOPSIS ON LINKAGES
Considering regional and global linkages it is evident that the RHBVE can be described as a globally
linked business estate. There is, however, currently a greater focus on the import of products (or
production inputs) than on exports and this could partly be attributed to the relatively low number
of manufacturing firms in the Estate. The large number of logistics functions located in the RHVBE
also implies strong regional and global linkages.
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7. EMPLOYMENT IN THE RHVBE
7.1. INTRODUCTION
In a paper, Realistic Strategies for a Million Jobs: The Case of KwaZulu-Natal, McCarthy (2009)
states that South Africa’s unemployment rates are among the worst in the world and that “fresh
thinking on policy and development strategy” will be needed to address this. One of the strategies
recommended by McCarthy is the “renewal of traditional economic strengths around the N2 and N3
corridors to and from Durban”. The RHVBE is located on this corridor and an assessment of
employment in the Estate will also inform decision-makers and planners as to the impact of
proposed economic development strategies on future employment in the region.
This section considers the employment characteristics of companies in the RHVBE. Employment in
the RHVBE is considered from a number of perspectives, including:
The contribution of RHVBE companies to employment;
The contribution of contract workers to employment;
Empowerment in the Estate;
Skills levels employed in the Estate; and
Prospects for future employment.
7.2. CONTRIBUTION TO EMPLOYMENT BY RHVBE COMPANIES
Employment data offers the most comprehensive picture available when considering the
contribution of RBVBE to the eThekwini economy as only six of the 90 firms interviewed did not
provide total employment figures.
The 84 companies surveyed employs a total of 6 950 people. This translates to a total of 83 persons
per company. In terms of total employment this suggests that the 173 companies identified in the
Estate makes a total permanent employment contribution of 14 359 jobs. This is in excess of the 10
000 permanent jobs previously projected (based on limited initial 2007 survey data).
The table below reflects on the sectoral distribution of employment in the RHVBE and compares
this with the sectoral distribution of companies.
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TABLE 7.1: SECTORAL DISTRIBUTION OF EMPLOYMENT IN RHVBE (COMPARED WITH SECTORAL
DISTRIBUTION OF COMPANIES)
SECTOR NO OF
WORKERS
% OF
TOTAL
% OF
COMPA-
NIES
Manufacturing 1725 28% 21%
Wholesale and Retail Trade; Repair of Motor Vehicles, Motor Cycles
and Personal and Household Goods; Hotels and Restaurants 1946 32%
49%
Transport, Storage and Communication 1613 26% 20%
Community, Social and Personal Services 484 8% 2%
Financial Intermediation, Insurance, Real Estate and Business Services 357 6% 7%
Construction 0 0% 1%
TOTAL 6125 100% 100%
(Note: The one construction company interviewed did not supply employment figures)
The most significant observation from this is the 28% contribution of the manufacturing sector to
employment, whereas only 21% of the companies interviewed were classified as manufacturing
firms. This then suggest that the contributions of different sectors to employment vary
substantially. The average size of the workforce of a company in different sectors is reflected
below:
Manufacturing – 91 employees;
Wholesale and retail etc – 44 employees;
Transport storage and communication – 90 employees; and
Financial and business services – 60 employees.
In the case of the community, social and personal services only two companies were interviewed of
which one was the eThekwini Hospital employing nearly 600 people. An average for this sector is
therefore not included in the above listing.
Based on the above the diagram below graphically illustrates the distribution of employment in the
various economic sectors represented in RHVBE.
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DIAGRAM 7.1: SECTORAL DISTRIBUTION OF EMPLOYMENT IN RHVBE (6 125 WORKERS)
7.3. THE CONTRIBUTION OF CONTRACTERS TO EMPLOYMENT
Over and above permanent employment, companies also employ contractors and contract
workers on site. Due to the current sensitivities regarding contract and non-permanent workers, it
was anticipated that this form of employment will be under reported on. A total of 34 companies
responded to the question and these companies have a total of 2 312 workers employed by
contractors or that are employed as contract workers. For the Estate as a whole this then translates
to a contracted workforce of 4 446 employees. Adding this to the permanent workforce it is
estimated that in excess of 17 000 people are employed in River Horse Valley.
TABLE 7.2: CONTRACT WORKERS EMPLOYED OVER AND ABOVE FULL-TIME STAFF
SECTOR
NO OF
CONTRACT
WORKERS
NO OF
COMPANIES
RESPONDED
Community, Social and Personal Services 263 2
Financial and Other Business Services 231 3
Manufacturing 625 8
Transport, Storage and Communication 930 9
Wholesale and Retail Trade; Repair of various; Hotels and Restaurants 263 12
ALL RESPONDENTS (34 COMPANIES) 2312 34
It is noted from the above that the transport, storage and communication sector makes the largest
contribution to the employment of contract workers. However, most sectors make a contribution.
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7.4. NEW JOBS
Respondents were also requested to indicate the number of new jobs created since location or re-
location to RHVBE. Only 46 companies, roughly 50% of those interviewed responded to this
question and for the purpose of this analysis it is assumed that others did not create new jobs. The
results are reflected in the table below.
TABLE 7.3: NEW JOBS AS A PERCENTAGE OF TOTAL JOBS
SECTOR NEW JOBS (46
COMPANIES)
TOTAL JOBS OF
86 COMPANIES
% OF JOBS
NEW
Manufacturing 730 1725 42%
Community, Social and Personal Services 484 484 100%
Wholesale and Retail Trade; Repair of various;
Hotels and Restaurants
477 1946 25%
Financial and Other Business Services 300 357 84%
Transport, Storage and Communication 74 1612 5%
TOTAL 2 065 6 124 34%
In overall terms it is suggested that 30% of all jobs in the River Horse Valley Estate are new jobs, i.e.
created after the establishment in the RHVBE. Considering a total employment of 12 629, as
established earlier, this translates to 4 294 new jobs having been created in the Estate. From the
above the major contribution made by the eThekwini Hospital to new jobs created is evident in the
community, social and personal services sector.
The contributions made by specific sectors to new jobs created are reflected on in the table below.
TABLE 7.4: DISTRIBUTION OF NEW JOBS CREATED PER SECTOR
SECTOR NEW
JOBS
% OF
NEW
JOBS
NO OF
BUSINESSES
Manufacturing 730 35% 10
Community, Social and Personal Services 484 23% 2
Wholesale and Retail Trade; Repair of various; Hotels and
Restaurants 477 23% 25
Financial and Other Business Services 300 15% 1
Transport, Storage and Communication 74 4% 8
ALL RESPONDENTS (46 COMPANIES) 2065 100% 46
From the above it is noted that the manufacturing sector has made the most substantial
contribution to new jobs in the RHVBE.
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7.5. EMPOWERMENT IN RHVBE
A total of 50 companies provided detailed information on the employment of people from
historically disadvantaged backgrounds. An analysis of this information, presented in the table and
diagram below, suggests that in overall terms 74% or nearly three quarters of employees in RHVBE
can be classified as historically disadvantaged individuals.
TABLE 7.5: EXTENT OF HDI EMPLOYED IN DIFFERENT SECTORS (50 COMPANIES)
SECTORS NON HDI HDI HDI AND
NON-HDI
Community, Social and Personal Services 352 157 509
Financial and Other Business Services 186 25 211
Manufacturing 224 820 1044
Transport, Storage and Communication 71 420 491
Wholesale and Retail Trade; Repair of various; Hotels and Restaurants 189 1469 1658
ALL COMPANIES 1 022 2 891 3 913
DIAGRAM 7.2: % DISTRIBUTION OF HDI AND NON-HDI STAFF IN SECTORS (50 COMPANIES)
Levels of empowerment appears to vary substantially from sector to sector, with only 12% of
employees in the business services sector being, followed by community, social and personal
services with 31% HDIs. Empowerment levels appear to be high in the manufacturing (79%),
transport and storage (86%) and wholesale and retail (86%) sectors.
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7.6. SKILL LEVELS EMPLOYED IN THE RHVBE
An indication of the skill levels of employees in RHBVE companies was obtained. Distinction was
made in the enquiries between management, skilled workers, semi-skilled workers and unskilled
workers. The diagram below reflects on the skill levels of workers per sector.
DIAGRAM 7.3: EMPLOYMENT CATEGORY PER SECTOR IN RHVBE
In overall terms it would appear as if the level of skills in the River Horse Valley Estate as a whole is
high with 56% being classified as skilled (management and skilled workers). This suggests that the
businesses located in these facilities are dependent on access to highly skilled workforce. The
above should be viewed in the context of findings from earlier research undertaken in the Greater
Durban Metropolitan Area (GDMA). This research illustrated specifically the high level of skilled and
semi-skilled staff employed in the manufacturing sector.
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TABLE 7.6: EXPERIENCE OF MANUFACTURING WORKERS WHEN RECRUITING – GDMA, 2002/2003
CATEGORIES COMPANIES % OF TOTAL
Relevant work experience only 197 32.9
Primary education only 17 2.8
Secondary education only 83 13.8
Tertiary education only 5 0.8
Both work experience and primary education 38 6.3
Both work experience and secondary education 193 32.1
Both work experience and vocational education 18 3.1
Both work experience and tertiary education 47 7.8
Production is outsourced 3 0.4
Total 600 100
Source: Devey et al 2005
It is noted from the diagram that follows that the distribution of HDIs in the various skills categories,
which makes up a major component of the workforce, is fairly similar to that of the workforce as a
whole.
DIAGRAM 7.4: DISTRIBUTION OF HDI EMPLOYMENT PER CATEGORY AND SECTOR
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7.7. FUTURE EMPLOYMENT IN THE RHVBE
Companies were asked to indicate whether they anticipated employment to grow in the short to
medium terms or whether it will decline or remain stable. The responses are reflected in the table
below.
TABLE 7.7: ANTICIPATED FUTURE EMPLOYMENT GROWTH
SECTOR DECLINE REMAIN
STABLE GROW
NO
RESPONSE
Community, Social and Personal Services 0% 0% 100% 1
Construction 0% 0% 100% 1
Financial and Other Business Services 17% 0% 83% 6
Manufacturing 0% 53% 47% 17
Transport, Storage and Communication 6% 56% 38% 16
Wholesale and Retail Trade; Repair of
various; Hotels and Restaurants 2% 41% 56% 41
ALL COMPANIES 4% 43% 54% 82
More than 50% of companies indicated that they expect employment levels at their facilities in
RHVBE to grow further. It is noted that 5 of the 6 finance / business sector companies anticipated
growth. The manufacturing and wholesale and retail sectors were also optimistic about future
growth. A further 43% of companies indicated that employment will remain stable and only 4%, a
handful of companies, anticipated a decline.
Importantly, the above illustrates the positive future outlook among the companies interviewed.
7.8. PLACE OF RESIDENCE OF EMPLOYEES
Companies employing approximately 50% of the workforce (of the respondents) could provide
information relating to the place of residence of employees. The results are reflected on in the table
below.
TABLE 7.8: PLACE OF RESIDENCE OF EMPLOYEES
AREA NO OF EMPLOYEES PERCENTAGE
Ink (Inanda-Ntuzuma-KwaMashu) 984 32%
Ethekwini South 710 23%
Ethekwini North 527 17%
Reservoir Hills / Newlands etc. 256 8%
Durban CBD 227 7%
Ethekwini West 219 7%
Avoca Hills 119 4%
OTHER (Indicate) 74 2%
TOTAL 3,117 100%
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It is noted that the majority of employees, or 32%, are drawn from the INK area. It is then also
noted that a high percentage of the employees are from the southern parts of eThekwini. Further
investigation revealed that approximately 50% of those from Durban South relates to the recent
2011 relocation of one major company from Prospecton to River Horse Valley.
By far the majority of employees employed in RHVBE are then drawn from the general area in
which it is located, i.e. INK (32%) and Durban North (17%), with Reservoir Hills, Newlands and Avoca
Hills making a combined 12% contribution to employment.
7.9. SYNOPSIS ON FINDINGS RELATING TO EMPLOYMENT
It is estimated that that in excess of 17 000 people are employed directly and indirectly by
companies in the RHVBE. In order to place this in context, the table below indicates the
contribution that various employment nodes in eThekwini made to total employment in the early
2000s.
TABLE 7.9: THE SPREAD OF EMPLOYMENT ACROSS ETHEKWINI BY TYPE AND NUMBER OF JOBS,
2001
MAIN ECONOMIC
NODES
APPROXIMATE
TOTAL NODAL
EMPLOYMENT
PERCENTAGE
OF ETHEKWINI
EMPLOYMENT
KEY ACTIVITIES IN EACH NODE
Durban Central 137000 28% Retail, Services, Offices, Conferences,
Education, Tourism
Jacobs / Mobeni 73400 15% Mature industrial (Chemicals, Plastics,
Confectionery, Textiles, Footwear,
Packaging, Engineering)
Pinetown / New Germany 52200 11% Mature Industrial ( Textiles, Earthmoving,
Beverages, Footwear Components,
Electronics, Medical Goods)
Port of Durban / Maydon
Wharf
35000 7% Tourism, Freight Logistics and Transport
Manufacturing, Engineering, Recreation
Chatsworth 25100 5% Retail, Services
Isipingo / Prospecton 21000 4% Automotive, Food, Plastics, Carpets,
Chemicals, Beverages, Transport,
Distribution
Coedmore 14200 3% Stone Quarry and Cement
Springfield Park 12000 2% Light industrial, Retail
Queensburgh /
Umhlatuzana
11800 2% Small light to medium industrial - growth
potential
Extract from Graham Muller (2006)
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From the above it is noted that the Estate already makes a much higher contribution to
employment than areas such as Springfield Park and are moving closer to the employment levels
achieved in the Isipingo / Prospecton areas.
The assessment further established that:
Thirty four percent of permanent jobs established in the RHVBE are new jobs, i.e. jobs that did
not exist previously before relocation to the area.
Three quarters of workers employed in RHVBE are classified as being from historically
disadvantaged backgrounds.
The workforce in the RHVBE is highly skilled with 56% of employees being classified as
management (9%) or as skilled workers (47%). A further 31% is classified as semi-skilled.
Importantly, the majority of companies (54%) anticipate further growth in employment in the
RHVBE in the short to medium term.
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8. THE FACILITIES OF RHVBE COMPANIES
8.1. INTRODUCTION
The assessment of facilities of companies in the RHVBE considers briefly the ownership of
properties / facilities, the space occupied by companies and their capital expansion plans.
8.2. OWNERSHIP OF PROPERTIES
The survey established the extent to which companies own or lease facilities in RHVBE. Seventy of
the ninety companies interviewed responded to this question. Twenty-seven or 39% of the
companies that responded confirmed that they owned the land and facilities located in the River
Horse Valley. Sixty one percent of the companies indicated that they lease the facilities.
DIAGRAM 8.1: COMPANIES THAT OWN OR LEASE FACILITIES
The diagram below considers the ownership by companies of facilities in different turnover
categories. Although it was anticipated that strong patterns would emerge from this, it is not the
case.
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DIAGRAM 8.2: OWNERSHIP OF FACILITIES IN DIFFERENT TURNOVER CATEGORIES
Of the five companies that indicated the highest turnover four or 80% indicated that they lease the
facilities that they operate from. In the lowest turnover category 60% of companies indicated that
they lease the facilities they operate from.
In general it can be concluded that a higher percentage of the larger companies own their facilities
in the RHVBE, whereas smaller companies are more likely to lease facilities.
8.3. SPACE OCCUPIED
Through the survey process attempts were made to obtain a better understanding of space
utilisation in the RHVBE. Unfortunately, this type of information is not generally available and only
a limited number of companies provided inputs in this regard.
Diagram 8.3 below reflects on the distribution of building space for those companies that
responded in the following categories:
Warehousing, logistics,
Office space,
Manufacturing,
Retail, and
Other.
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DIAGRAM 8.3: APPROXIMATE DISTRIBUTION OF BUILDING SPACE (IN M2)
The dominance of warehousing / logistics space in River Horse Valley was anticipated. However,
the substantial contribution of office space to the total area occupied by companies in RHVBE
appears to be high (nearly a quarter of total space), but again confirms the multi-use nature of the
estate. The low percentage of manufacturing space relates to only a quarter of manufacturing
companies supplying this information.
8.4. CAPITAL EXPANSION PLANS
Only 16 companies responded to the request for the value of their capital expansion plans for the
next 5 years. The total of these capital expansion plans of the 16 companies came to R1.2 billion, of
which R1 billion of this relates to one major company. The other 15 companies combined suggested
capital investment to the value of R214 million or R14.3 million per company over the next 5 years.
The capital investment of these companies ranged from between R200,000 and R150 million.
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9. URBAN MANAGEMENT CONSIDERATIONS
9.1. INTRODUCTION
A key objective of the survey process was to establish how companies in River Horse Valley
experience the environment in which they are located and then how their activities can be
enhanced. The River Horse Valley Business Estate is unique in that it has a well-established
Management Association in place that has been responding to the needs of owners and tenants
over a number of years. Background on the activities of the River Horse Valley Business Estate
Management Association (RHVBEMA) is provided in Annexure C.
It is assumed that most companies are aware of the existence of the RHVBEMA as they are being
engaged with on a regular basis. As a first step, and for interest, the awareness of companies
relating to the location of the offices of RHVBEMA was tested.
DIAGRAM 9.1: RESPONDENTS KNOWING WHERE RHVBE MANAGEMENT OFFICES ARE LOCATED
Despite the centrally located offices of the Association, the representatives of many companies are
not aware of the location of their offices in the Estate. This can possibly be ascribed to the fact that
most communication takes place using either direct contact by field staff, telephone or email.
Companies were not asked to indicate whether they are aware of the existence of the web site of
the association as this was only recently launched.
9.2. THE ROLE OF THE MANAGEMENT ASSOCIATION
Companies were asked to identify those issues that they believe the management association
should focus on, on their behalf. Three priorities could be listed by each company. The table below
reflects on the number of times an issue was mentioned by respondents.
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TABLE 9.1: ISSUES TO BE FOCUSSED ON BY THE RHVBE MANAGEMENT ASSOCIATION
ISSUES MENTIONED NUMBER OF MENTIONS % OF MENTIONS
Safety and security 46 26%
Resolving transport issues 32 18%
Aesthetic environment 15 9%
Improving accessibility 10 6%
Marketing the area 8 5%
General maintenance 8 5%
Further development 7 4%
Maintain utilities 7 4%
Addressing urban grime 5 3%
Respond to tenant / owner issues 4 2%
Additional urban facilities 4 2%
Increase property values 4 2%
Maintain environment 4 2%
Communication 3 2%
Other 13 7%
TOTAL 176 100%
The Management Association addressing safety and security issues (26%) and the need to resolve
transport issues (18%) received a high priority from respondents. These are expanded further on in
the sections that follow.
It is insightful from the above that a number of respondents mentioned the potential role of the
Association in:
Marketing and branding the area;
Assisting in the provision of additional urban facilities (restaurants, fast food outlets and
retailers were listed); and
Supporting the increase in property values.
9.3. URBAN MANAGEMENT ISSUES
Companies were requested to rate specific urban management issues in terms of whether it is a
major problem, a problem or not a problem. The results are reflected in Diagram 9.2 below.
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DIAGRAM 9.2: RATING OF URBAN MANAGEMENT ISSUES BASED ON PERCEPTION OF
RESPONSDENTS
Respectively 64% and 52% of respondents viewed traffic management and traffic policing as a
“major problem” within the RHVBE. Although it has been suggested that this frustration of
respondents relates primarily to the current construction of further lanes on Queen Nandi Drive,
and the lack of public transport facilities in the development area, this perception should be further
investigated and confirmed. Both Queen Nandi Drive and public transport issues are currently
being addressed.
Approximately 60% of respondents indicated that the following does not present an issue, viz.
Maintenance of verges and open space;
Street lighting;
Street cleaning; and
Refuse removal.
The majority of respondents, 65% or two thirds, did view safety and security as a problem of which
21% viewed this as a major problem. This is a high percentage considering that specialised security
management systems are in place. A further more detailed assessment of this aspect should be
undertaken to confirm whether this is a perception that exists because of the general safety and
security situation in South Africa, or whether it is based on actual experiences in the Estate.
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9.4. TRANSPORT RELATED ISSUES
In the previous section traffic management was highlighted as a key issue to be addressed. The
diagram below unpacks further the traffic management issues giving an indication of what were
perceived by respondents to contribute to their perception of traffic management as a problem.
DIAGRAM 9.3: PERCEIVED TRAFFIC MANAGEMENT ISSUES
From the above it is noted that the majority of those that responded saw road capacity as an issue.
Whether this only relates to Queen Nandi Drive or also to other areas will have to be further
investigated.
9.5. CORPORATE SOCIAL RESPONSIBILITY
A view exists that the Management Association structure could potentially play a significant role in
supporting Corporate Social Responsibility programmes relating to the Estate, targeting specifically
neighbouring communities. Companies were therefore firstly requested to indicate whether they
have corporate social responsibility programmes in place, and, secondly, whether they would be
interested in participating in RHVBE focussed corporate social responsibility programmes. The
responses of companies are reflected in the diagrams below.
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DIAGRAM 9.4: COMPANIES WITH CORPORATE SOCIAL RESPONSIBILITY PROGRAMMES IN PLACE
A low 34% of companies indicated that they have formal Corporate Social Responsibility
Programmes (CSRP) in place. This aspect should be further assessed based on the comprehensive
database, but indications are that it is generally the larger companies that have SRPs in place. A
number of these companies commented in interviews that these programmes are head office based
and that communities in the vicinity of River Horse Valley are not necessarily targeted.
DIAGRAM 9.5: COMPANIES INTERESTED IN PARTICIPATING IN RHBVE FOCUSSED CORPORATE
SOCIAL RESPONSIBILITY PROGRAMMES
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A high 30% of companies did not respond to this question and a further 21 % indicated that they are
not interested in being involved in CRSP led by the RHVBE Management Association. However,
nearly 50% of companies did indicate that they would either like to participate in such programmes
or will consider being involved.
It is suggested that this provides a sufficient basis for exploring the potential of a RHVBE led Social
Responsibility Programmes targeting neighbouring communities.
9.6. SYNOPSIS OF URBAN MANAGEMENT ISSUES
It is evident from the survey that companies see an important role for the Management Association
to continue fulfilling in the Estate. The important focus areas should be safety and security,
resolving transport issues and impacting positively on the aesthetic environment. However, a
number of other functions such as the marketing and branding of the Estate should also be
considered.
It would further appear from the responses that the safety and security issue is the major concern,
followed by a range of transport issues. It has, however, been noted that a number of the
highlighted transport issues are in the process of being addressed.
The number of Corporate Social Responsibility Programmes focussing on specifically addressing
social development issues in neighbouring communities appears to be limited. Nearly 50% of
companies did, however, indicate that they will consider participating in such programmes
managed through the Management Association.
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10. AN ANALYSIS OF RATES CONTRIBUTIONS
10.1. INTRODUCTION
A comprehensive database of Valuation Roll information for RHVBE properties could not be
accessed. A database was therefore compiled using an ownership database supplied by RHVBE
Management Association. This database listed all freehold and sectional title properties and basic
ownership information. Checking each of these properties against the 2012 online eThekwini
Valuation Roll the RHVBE Valuation Roll was compiled. The valuation roll information for a total of
127 of the listed 196 freehold and sectional title properties was accessed.
10.2. RHVBE RATES INFORMATION
Based on the available information the total market value of properties in the RHVBE, based on the
2012 Valuation Roll, was firstly established. The table distinguishes between:
Freehold properties;
Sectional title properties; and
Properties for which rates information is not available.
TABLE 10.1: SUMMARY OF ANNUAL RATES PAYABLE FOR RHVBE PROPERTIES
PROPERTY TYPE AND RATES CATEGORY
NO OF PROPERTIES
COMBINED MARKET VALUE
CATEGORY MARKET VALUE
ANNUAL RATES PAYABLE
1) Freehold 56 properties R 1,705,495,000
Business & Commercial
R 419,950,000 R 8,701,364
Industrial
R 1,155,500,000 R 30,898,070
PSI
R 5,000 R 11
Vacant Land
R 130,040,000 R 5,690,550
2) Sectional title 71 properties R 373,947,000
Business & Commercial
R 202,650,000 R 4,198,908
Industrial
R 171,160,000 R 4,576,818
Residential
R 137,000 R 1,252
TOTAL 127 properties R 2,079,442,000
R 54,066,974
3) Rates info not available 69 properties R1,129,775,574*
+ R 29,374,970**
TOTAL ESTIMATED VALUE
R 3,209,217,575
TOTAL ESTIMATED ANNUAL RATES R 83,441,945
* Estimated market value using an average value per property (from available information)
**Estimated rates value using an average rate per property
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The estimated combined market value of properties in the River horse Valley Business Estate is R3,2
billion, the “Category Value” column indicates the breakdown of this in terms of different rating
categories. Specific rate randages (i.e. rates per rand) as published by the eThekwini Municipality
annually was applied to the market value of properties to establish the potential annual rates
income. The rate randages, as promulgated in a Notice dated 30 May 2012, are:
Residential – 0.914 cents
Industrial – 2.674 cents
Business and Commercial – 2.072 cents
Public Service Infrastructure – 0.228 cents
Vacant land – 4.376 cents
Based on the above rate randages the annual rates generated from the RHVBE development can
potentially be as high as R83.5 million.
10.3. CONSIDERING THE IMPLICATIONS
Previous assessments of the rates income to be generated by the Estate suggested an annual
income for the Municipality of up to R42 million. Based on the assessment of the 2012 Valuation
Roll it was established that the rates income to be derived from existing developed and
undeveloped land can be as high as R83.5 million. This contribution is set to increase once the
Estate is fully developed.
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11. CONCLUDING COMMENTS: THE IMPACT OF THE RHVBE
11.1. INTRODUCTION
The objectives of the study were firstly to confirm the impact to date of the River Horse Valley
Business Estate in terms of the local economy, employment and investment and, secondly, to
provide urban management decision-makers with a better understanding of what can be done to
further support the growth of businesses, employment and opportunities in River Horse Valley.
The assessment was specifically undertaken with a view to establishing whether the eThekwini
Municipality as the joint venture partner of Tongaat Hulett achieved it’s intended objectives
through the development. As a yardstick for measuring this achievement, it is noted that the
Effingham Development Joint Venture has spent R215.7 million to date on the installation of
infrastructure, including roads, services and platforms, creating serviced saleable sites to sell. The
eThekwini Municipality is roughly a two-thirds partner in the Joint Venture (pers com Joint Venture).
EThekwini has also spent R300 million on the construction of Queen Nandi Drive, however, this
road was viewed as essential infrastructure serving the larger region and was not constructed with
the view to provide access to the RHVBE. The proposed RHVBE development rather supported the
motivation for providing this strategic infrastructure linking major residential and business
townships, restructuring the colonial and apartheid urban landscape.
11.2. CORE FINDINGS
Based on the survey of 90 of a total of 173 companies and the collection of other relevant
information the core findings of the study related to:
Development cost: A total of R215.7 million, of which eThekwini made roughly a two-thirds
contribution, was spent on establishing and servicing the Estate (this excludes top structure
development). To place this in context this investment must be compared to public sector
spending on the uShaka Marine World (R735 million), the Durban ICC (R900 million in the 1990s),
the Moses Mabhida Stadium (R3.4 billion) and the King Shaka International Airport (R7.8 billion). In
comparison the public sector investment in RHVBE has thus been relatively small.
Capital investment: From calculations based on the 2012 eThekwini Municipality Valuation Roll of
the RHVBE the market value of properties in the RHVBE was estimated at R3.2 billion. Through the
survey further investment of R1.2 billion over the next five years could be confirmed. This is viewed
as a conservative estimate of the actual capital investment as it is anticipated that market value for
industrial properties will be well below the actual investment value. Again, to place this in context,
the construction of 4 000 middle income houses (each valued at R800 000) will equate this
investment value of R3.2billion. This capital investment of R3.2 billion should then also be
considered in the context of the R3.4 billion Moses Mabhida Stadium and the R7.8 billion King
Shaka International Airport.
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Municipal Rates Contribution: The rates contribution of properties in RHVBE is estimated to be
R83 million per annum, or more than a third of the actual investment cost of R215.7 million. This
will equate to the rates contribution of 6 000 homes valued at R1.5 million each, or 11 500 R800 000
homes.
Employment: Based on the survey findings it was estimated that in excess of 17 000 people are
employed in RHVBE. The permanent workforce is estimated to be 12 629 (of which 4 249 are new
jobs) augmented by a contract workforce of 4 446 people (including employees of contractors and
contract staff). Estimates from the early 2000’s placed employment in Isipingo / Prospecton at 21
000 people, Springfield Park at 12 000 and Phoenix Industrial at 4 500. The Durban ICC is suggested
to create 3 376 jobs directly related to the core activities of the Centre. Further to this, the majority
of employees employed in RHVBE are drawn from the general area in which it is located, i.e. INK
(32%) and Durban North (17%), with Reservoir Hills, Newlands and Avoca Hills making a combined
12% contribution to employment.
11.3. OTHER BASIC FACTS
A number of key facts confirmed through the assessment are highlighted:
A total of 173 companies were confirmed to be currently active in the RHVBE (52% or 90 were
interviewed for this assessment). With new developments this number is continually
increasing.
49% of companies were classified as being part of the wholesale and retail sector, 21%
manufacturing sector related and 20% belonging to the transport, storage and communication
sector.
Three “clusters” feature prominently in the Estate viz. wholesale trade in machinery, equipment
and supplies (14% of companies), other retail trade in specialised goods (16%); and post and
associated courier services (10%).
The majority of facilities in RHVBE are branches representing larger regional, national and
international business concerns, however, there is a relatively high proportion of head offices
(28%) or independent units (15%) also located within the Estate.
Sixty one percent of companies interviewed indicated that their establishment in RHVBE were
as a result of a relocation process, with a further 22% suggesting they were outgrowing their
premises at the time of relocation, and 7% percent being newly established.
A high 19% of the companies accommodated in RHVBE were established after 2001 and can
therefore be viewed as new or emerging companies. A further 32% of companies were
established between 1991 and 2000, and 39% before 1990.
Nearly 50% of businesses were drawn from areas in close proximity to RHVBE with 24% of
businesses previously located in Springfield Park and 21% located in Durban North.
The Estate is nationally and globally linked with a number of companies being involved in
export and import activities.
From the above it is concluded that the RHVBE, within a short period of time, has established itself
as an integral part of the economic fabric of the eThekwini Municipality.
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11.4. CONSIDERING THE IMPACT
This current assessment and previous studies considered the impact of the RHVBE from a number
of perspectives. Each of these perspectives are briefly reflected on below.
Attracting / retaining major companies: The Estate, although not successful in facilitating new
company formation, has succeeded in providing a number of major companies with an alternative
location to consolidate and/or expand its eThekwini operations. Importantly, it also provided
companies with an opportunity to improve operational efficiencies specifically from a logistics
perspective and their corporate image. The move of companies from older industrial and business
estates also established opportunities for the establishment and growth of new and existing
businesses in those areas. The fact that industrial property vacancy rates in eThekwini has
remained low in the recessionary climate suggests that the need for such properties has been
substantial.
Creating and retaining jobs: It was illustrated that the Estate offers in the region of 17 000
employment opportunities, making it one of the major employment nodes in eThekwini. At least 4
200 (approximately 34%) of these jobs were new jobs created as a result of the establishment of the
Estate. The employment created through the construction phase should also be considered in this
regard and is discussed in substantial detail by McCarthy (2009).
Boosting municipal rates: It is estimated that the Estate currently generates annual rates
amounting to R83.5 million. This will increase as the development of sites in the Estate continues.
Facilitating investment: The estimated combined market value of properties in the Estate, based
on the 2012 eThekwini Valuation Roll, is currently set at R3.2 billion. Further investment in the
Estate of R1.2 billion by various industries have been confirmed through the assessment. This
suggests a gearing ratio of nearly 1:15 if the investment of the Joint Venture in terms of
infrastructure is considered against this overall investment (land and management costs are
excluded from this calculation).
Enhancing the urban environment: Through the planning and the various initiatives of the
Management Association, former sugar cane fields are now being rehabilitated and integrated into
the urban environment. Key contributions of the Estate in this regard then includes (1) the
establishment of an aesthetically acceptable business park, including a number of state of the art
facilities with architectural merit, (2) wetland rehabilitation and (3) a range of associated initiatives
as reflected on in reports by the RHVBEMA.
Enhancing urban infrastructure: The development of the Estate not only supports the
densification strategies of eThekwini, but also facilitated the development of critical urban
infrastructure, specifically the construction of Queen Nandi Drive and the access onto the N2 both
contributing to the restructuring of the colonial and apartheid urban landscape by providing
improved linkages between residential and business townships. A contribution is also made to the
more efficient utilisation of existing infrastructure.
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11.5. POSSIBLE NEGATIVE IMPACTS OF THE ESTATE
The above, mostly positive impacts, should be considered against the possible negative impacts.
To date the only potential negative impact that could be identified through this assessment is the
impact of this development on neighbouring and other competing business estate developments
brought about by the relocation of businesses to the newer River Horse Valley Business Estate.
From the assessment it is evident that such relocations have taken place. However, in light of low
industrial vacancy rates in eThekwini the impact of this on those areas are not viewed as
substantial. Such relocations also potentially provide quality space for smaller and emerging
businesses to grow into. This impact could be further investigated if high vacancies rates from
neighbouring estates can be confirmed.
11.6. ISSUES TO BE ADDRESSED
A number of issues identified through this and previous assessments should continue to be
addressed through the ongoing activities of the Management Association. These include:
Safety and security: This is an ongoing focus of the Management Association and there may be
a need to better understand the concerns of businesses in this regard. It is, however, noted that
levels of reported crime is low and that levels of surveillance is higher than in most similar
development areas.
Transport issues: Various transport issues have been highlighted including congestion on roads,
the lack of coordinated taxi transport and traffic management in general. Most of these issues
are currently being addressed through various initiatives, but with the extent of development in
the area, the strong logistics function and the public nature of Queen Nandi Drive specifically
this aspect will always have to be managed.
Access to facilities: Access to facilities, specifically for staff, has been a key issue to be
addressed highlighted in all previous assessments. To some extent this will be addressed with
the development of two sites by Engen, who will be providing convenience and fast food
outlets, which is currently in planning. Further attention should, however, be afforded towards
planning for this component of the Estate. Considering the number of people employed in the
development and the location of the development further retail development in the area may
present an opportunity.
Corporate social responsibility: It has been confirmed that the current impact of corporate
social responsibility programmes on neighbouring communities are limited. Based on the
responses of companies it is suggested that the potential for a coordinated social responsibility
programme managed by the Association should be considered.
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11.7. CONCLUSION
The assessment has confirmed the significant positive impact of the River Horse Valley Business
Estate on investment, job creation, rates generation and urban development. It is suggested that
other investment in strategic infrastructure made by the eThekwini Municipality should also be
evaluated in terms of the identified criteria and that a comprehensive understanding be developed
on what strategies will best support the efforts of national government to create 11 million jobs by
2030. The criteria applied in the case of the River Horse Valley Business Impact Assessment can also
be applied in assessing other investments in eThekwini. This will assist decision-makers in
comparing various investment options.
The criteria to be considered must include the contribution of a development / investment towards:
Attracting / retaining major companies;
Creating and retaining jobs;
Boosting municipal rates;
Facilitating investment;
Enhancing the urban environment; and
Enhancing urban infrastructure.
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BIBLIOGRAPHY
Devey, R. Valodia, I. And Velia, M. 2005. Constraints to Growth and Development: Evidence for
the Greater Durban Metro.
eThekwini Municipality, 2009. Industrial Spatial Strategy. Presentation by the Framework
Planning Branch, eThekwini Municipality.
Fakisandla Consulting, 2007. River horse Valley Business Estate: An Updated Baseline Study.
Graham Muller and Associates, 2006. eThekwini Municipality Economic Review 2006/7.
Houghton J. 2005. Baseline Study: River horse Valley Business Estate.
Houghton J. 2010. Negotiating the Global and the Local: Evaluating Development Through
Public-Private Partnerships in Durban, South Africa. Published in Urban Forum (2011) 22:75-93.
McCarthy J. 2009. Socio-economic Impacts of River horse Valley.
McCarthy J. 2009. Realistic Strategies for a Million Jobs: The Case of KwaZulu-Natal. Centre
for Development and Enterprise.
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ANNEXURE A: QUESTIONNAIRE
RIVER HORSE VALLEY IMPACT STUDY
QUESTIONNAIRE
The eThekwini Municipality in partnership with Tongaat Hulett Developments (the Effingham Development Joint
Venture) set out in 1994 to establish the River Horse Valley Business Estate with construction getting underway in
2002. The Estate is now well established and thriving, but it is critical to establish to what extent the objectives for
establishing the Estate has been achieved. For this purpose a development planning consultancy, StratPlan, has
been appointed by the eThekwini Municipality to assist with undertaking a socio-economic impact study.
The objectives for the study are:
1) To confirm the impact to date of the River Horse Valley Business Estate in terms of the local economy,
employment and investment;
2) To offer decision-makers with a better understanding of what can be done to further support the growth of
businesses, employment and opportunities in River Horse Valley Business Estate (RHVBE).
It is intended that the study process and findings highlight further the successes achieved to date and hence further
raise the profile of the area. Successes already identified include the conclusion of a public private partnership
development with all sites in RHVBE now having been sold, the work that commenced recently to upgrade Queen
Nandi Drive and various other successes of the River Horse Valley Business Estate Management Association
(RHVBEMA). These successes include the forthcoming rehabilitation of 41 hectares of wetland, the R750 000
indigenous tree planting programme, addressing public transport issues and the general management of the area
by the RHVBEMA. The estate is setting new benchmarks in the development and management of business estates.
The information required through this survey relates only to your operations in the River Horse Valley location and
not to that of the larger company (if relevant). The information to be supplied will be used to identify strategic
issues within RHVBE and also in the planning and development of similar estates. Therefore the focus of the
questionnaire is on:
understanding the origins and activities of your company,
considering your contribution to the local economy, and
identifying how Tongaat Hulett Developments and the eThekwini Municipality (the Effingham Development
Joint Venture) can better support your business.
The questionnaire is structured in the following distinct sections (each with sub-sections):
About the Company
Business of the Company
Management and Staff
Finance and Investment
Urban Management
Senior researchers are available to meet with you to complete the questionnaire and you will be contacted to
establish whether you need such support. We estimate the completion of the questionnaire will take less than 20
minutes.
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Confidentiality: It should be noted that all information supplied by businesses during the course of this survey
will be treated with utmost confidence. The aim will be to extract trends from the data gathered in the survey since
this is the major focus of the project. All data will be analysed and presented in the report on an aggregated basis
only.
Should you have any queries relating to the questionnaire please contact: Tindall Kruger (StratPlan) 071 698 1362,
or Denny Thaver (Economic Development Unit, eThekwini Municipality) 031–3114037 / 083-3019963
Completed questionnaires are to be submitted to: Fax 086 514 1588, email [email protected] or submitted at
the offices of the River Horse Valley Business Estate Management Association (RHVBEMA) at Corobrick Road,
RHVBE.
1. ABOUT THE COMPANY
1.1 Name of Company
1.2 Name and Position of Person Responsible for Completion of Questionnaire
1.3 Contact Details Tel no.
Fax no.
1.4 Are you a Head Office, Branch, Subsidiary or Independent Unit?
Mark with X
Head Office
Branch
Subsidiary
Independent Unit
1.5 If Branch or Subsidiary, where is your Head Office located?
1.6 Is this a relocation / expansion / or new company
Mark with X
Relocation
Expansion
New Company
1.7 Where did you relocate from? (if relevant)
1.8 When was your company established?
1.9 When did you locate in River Horse Valley Business Estate (RHVBE)?
1.10 Why did you locate in RHVBE, i.e. main reasons for selecting RHVBE?
1.11 Did the RHVBE fulfil your expectations? (Mark with X)
Rate from 1 to 5 with (1 = unfulfilled and 5 = totally satisfied)
1 2 3 4 5
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2. THE BUSINESS OF THE COMPANY 2.1 What are your primary products / services?
(list top 3 and indicate others) 1)
2)
3)
Other:
2.2 Where are the majority of your customers located?
Mark with X
River Horse Valley Business Estate
Durban CBD
Durban South
Durban North
Durban West
KwaZulu-Natal
Gauteng
Rest of RSA
International
Other / Combination
2.3 Do you export goods and/or services from your RHVBE facility? (Mark with X)
No exports
Less than
50%
More than 50%
2.4 Do you import goods (inputs) to your RHVBE facility?
No import Less than 50 % of inputs
More than
50% of inputs
2.5 Are you dependent (without it your business cannot function) in your activities on links with the following:
Mark with X
King Shaka Airport
Dube Trade Port
Harbour
Rail infrastructure
Major road infrastructure
Challenges: (if any)
3. MANAGEMENT AND STAFF 3.1 How many full-time employees do you have in
your facility in RHVBE? (Category breakdown)? Number that are classified as Historically Disadvantaged Individuals (HDI)?
CATEGORY Total
Number Number of
HDIs
Management
Skilled
Semi-skilled
Unskilled Labour
TOTAL STAFF
3.2 How many NEW jobs were created from the relocation / expansion / new company in RHVBE?
3.3 How many contract workers / contract staff do you have on average at your facility on a daily basis?
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3.3 From what areas is your permanent workforce drawn from? What is the main form of transport to place of work?
AREA Percentage estimate
Form of Transport
Avoca Hills
INK [Inanda-Ntuzuma-KwaMashu]
Reservoir Hills / Newlands / etc
Durban CBD
eThekwini North
eThekwini West
eThekwini South
Other (indicate):
3.4 Do you anticipate that your workforce will grow, remain stable or decline over the next three years? Mark with X
Grow Remain stable
Decline
FINANCE AND INVESTMENT Turnover Category Mark with X
4.1 What is your annual turnover category (based on 2010/11)?
R1m to R5m
R5m to R50m
R50m to R100m
R100m to R500m
R500m to R1 000m
R1 000m to R2 000m
R2 000m to R5 000m
R5 000m >
Actual annual turnover for 2010/2011 (optional) R
4.2 What is your annual remuneration (total salary bill) R
4.3 Do you own or lease the (1) land and the (2) facility from which you operate? Mark with X
Mark with X
Land Own Lease
Facility Own Lease
4.4 What is the estimated value of your current capital investment in RHVBE?
R
4.5 What is the approximate extent of the space occupied by your company in RHVBE?
Area in m2
Offices
Warehousing / Logistics
Manufacturing
Retail
Undercover
Other:
4.6 What is the value of your capital expansion plans for the next 5 years?
R
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URBAN MANAGEMENT 5.1 Do you know where the offices of the River Horse
Valley Business Estate Management Association are located? (X)
Yes No
5.2 Do you believe establishing a Management Association for RVHBE is a positive intervention? Mark with X
Yes No
5.3 In your opinion what should the primary focus areas of the management association be?
1)
2)
3)
Mark with X
5.4 Rate the various urban management issues (1 = Major problem to 3 = Not a problem) Mark with X
Safety and security 1 2 3
Traffic policing 1 2 3
Refuse removal 1 2 3
Street cleaning 1 2 3
Street lighting 1 2 3
Traffic management 1 2 3
Maintenance of verges / open space
1 2 3
Other (describe):
5.5 Do you experience any transport-related challenges
within RHVBE?
Mark with X
Road capacity Yes No
Road maintenance Yes No
Traffic signalling Yes No
Taxis Yes No
Bus Yes No
Rail Yes No
Other (please specify):
5.6 If “yes”, please specify (be specific in terms of locations where possible).
5.7 Do you have a Corporate Social Responsibility Programme that targets local communities? Mark with X
Yes No
5.8 If “yes” please provide an indication of the focus of this Programme?
5.9 What is the annual spend on CSRP?
R
5.10 Are you willing to participate in Corporate Social Responsibility Programmes impacting on areas surrounding River Horse Valley?
5.11 Are there specific urban management issues that should be addressed in River Horse Valley and who should take responsibility for these?
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5.12 Do you have any other comments or suggestions you would like to make? __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
Contact Tindall Kruger on 071 698 1362 should you have any queries regarding this questionnaire
Thank you kindly for participating in this socio-economic study for River Horse Valley Business Estate. The eThekwini Municipality, Tongaat Hulett Developments and the River Horse Valley Business Estate
Management Association wishes your company everything of the best in your business endeavours.
SEE THE RECENTLY LAUNCHED WEB-SITE OF THE ESTATE MANAGEMENT ASSOCIATION AT:
www.riverhorsevalley.co.za
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ANNEXURE B: LIST OF COMPANIES IN RHVBE AND INTERVIEW STATUS
NO PROPERTY OCCUPIED BY STATUS STREET ADDRESS PROPERTY INTERVIEW
STATUS
1 360X Holding (Pty) Ltd Tenant U5, 57 River horse Road Erf 01 Ptn 123 Interviewed
2 ABB Tenant 31 Imvubupark Place Erf 34 03 Didn't participate
3 ACT - Advanced Channel Technology
Tenant 10E Kubupark Close Erf 01 Ptn 084 Didn't participate
4 Ampath Trust Owner 33 River Horse Road Erf 01 Ptn 116 Didn't participate
5 Art Printers Owner 70 Corobrik Road Erf 01 Ptn 087 Interviewed
6 Astrapak KZN Owner 1 Imvubupark Close Erf 01 Ptn 028 Interviewed
7 Athena Sports Tenant U11, 32 Kubu Avenue Erf 01 Ptn 039 U 11 Didn't participate
8 Axiz Tenant U4, 12 Kubu Avenue Erf 01 Ptn 040 Didn't participate
9 Barloworld Equipment Tenant 17 Imvubupark Place Erf 32 Ptn 02 Interviewed
10 Barrows Design & Manufacturing
Tenant U1, 12 Kubu Avenue Erf 01 Ptn 040 Didn't participate
11 Bedrock Trading(SUPA FOODS)
Tenant U14A, 21 Quarry Park Pl Erf 01 Ptn 110 Didn't participate
12 Berco Express Owner 28 Island Circle Erf 01 Ptn 033 Didn't participate
13 Bidvest Food Service Tenant 1 Island Grove Erf 01 Ptn 027 Didn't participate
14 Big Five Business Park 10 Kubupark Close Erf 01 Ptn 084 Didn't participate
15 Black Voice Marketing Tenant 27A Island Circle Erf 01 Ptn 003 Didn't participate
16 BP Drakensberg Tenant 45A River Horse Road Erf 01 Ptn 121 Didn't participate
17 Brand Effects Tenant U3, 32 Kubu Avenue Erf 01 Ptn 039 U 03 Didn't participate
18 Broll Properties Agent 14 River Horse Close Erf 01 Ptn 140 Didn't participate
19 Bubesi Investments Owner 2 Island Grove Erf 01 Ptn 046 Interviewed
20 Builders Warehouse Tenant 23 River Horse Road Erf 01 Ptn 118 Interviewed
21 Bytes Communication Systems
Tenant 53 Island Circle Erf 01 Ptn 016 Interviewed
22 Bytes Document Solutions Tenant 53 Island Circle Erf 01 Ptn 016 Interviewed
23 Bytes System Integration Tenant 55 Island Circle Erf 01 Ptn 017 Interviewed
24 CAPCO Owner 2 Corobrik Place Erf 01 Ptn 090 Interviewed
25 Cape Couriers Owner U3, 2 Corobrik Road Erf 01 Ptn 094 Didn't participate
26 Captivity Headwear Tenant S2, 80 Corobrik Road Ptn 85-S02 Didn't participate
27 CBI Electrical Industrial Controls
Tenant S17, 80 Corobrik Road Ptn 85-S17 Didn't participate
28 Chateau Gateaux Tenant 49 Island Circle Erf 01 Ptn 014 Interviewed
29 Chespak Tenant U2, 45/47 Island Circle Erf 01 Ptn 100 U 02 Didn't participate
30 City Couriers Tenant 350 Umhlangane Road Erf 01 Ptn 098 Interviewed
31 Classic Acoustics Tenant S9, 80 Corobrik Road Ptn 85-S09 Interviewed
32 Cleaning World Tenant U14, 32 Kubu Avenue Erf 01 Ptn 039 U 14 Didn't participate
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NO PROPERTY OCCUPIED BY STATUS STREET ADDRESS PROPERTY INTERVIEW
STATUS
33 CMG Eelectric Motors Tenant S13,80 Corobrik Road Ptn 85-S13 Interviewed
34 Courier It Tenant U7, 21 Quarry Park Place Erf 01 Ptn 110 Interviewed
35 CSD Targus Distribution (PTY) Ltd
Tenant U2, 32 Kubu Avenue Erf 01 Ptn 039 U 02 Interviewed
36 Curcuit Breaker Industries Electric Low Voltage
Tenant S18, 80 Corobrik Road Ptn 85-S18 Interviewed
37 Current Automation Owner S6, 80 Corobrik Road Ptn 85-S06 Didn't participate
38 D P E World Wide Express Tenant S1, 80 Corobrik Road Ptn 85- S01 Interviewed
39 Dales Bros Auctioneers (Pty) Ltd
Owner 5 River Horse Place Erf 01 Ptn 0152 Interviewed
40 Dawning Filters Owner U11, 2 Corobrik Road Erf 01 Ptn 094 Interviewed
41 DBC Packaging Owner 11 Corobrik Place Erf 01 Ptn 088 Interviewed
42 Diesel Electric 1 River Horse Place Erf 01 Ptn 075 Interviewed
43 Discovery - Logistics Tenant U4, 45/47 Island Circle Erf 01 Ptn 100 U 04 Interviewed
44 Discovery - Office/Call Centre
Tenant 41 Imvubupark Place Erf 34 08 Interviewed
45 Durban Data Imports (Pty) Ltd
Owner U4, 2 Corobrik Road Erf 01 Ptn 094 Interviewed
46 Dynamic Cut & bend (Pty) Ltd
U7, 2 Corobrik Road Erf 01 Ptn 094 Didn't participate
47 Edmonds Projects Tenant S8, 80 Corobrik Road Ptn 85-S08 Didn't participate
48 EGL (Eagle Global Logistics) Tenant U2, 1 Imvubupark Place Erf 01 Ptn 058 Interviewed
49 Engen Petroleum – PFS West
Owner 123 Queen Nandi Drive Erf 01 Ptn 130 Didn't participate
50 Espresso Owner U4, 10 Hippopark Avenue
Erf 17 of 1 Interviewed
51 eThekwini Hospital Owner 11 River Horse Road Erf 01 Ptn 047 Interviewed
52 Euroshower & Sanitary Ware
Tenant U8, 2 Corobrik Road Erf 01 Ptn 094 Interviewed
53 Exquisite Indents Tenant 350 Umhlangane Road Erf 01 Ptn 098 Didn't participate
54 Fast on Shoes Owner U15, 21 Quarry Park Place
Erf 01 Ptn 110 Didn't participate
55 First Distribution + Audiosure
Tenant U12, 45/47 Island Circle Erf 01 Ptn 100 U 12 Interviewed
56 Formax Tenant U2, 2 Corobrik Road Erf 01 Ptn 094 Interviewed
57 Franke Kitchen Systems (Pty) Ltd
16 Imvubupark Place Erf 32 Ptn 01 Didn't participate
58 Fusion Performance Tenant U1, 57 River Horse Road Erf 01 Ptn 123 Didn't participate
59 GAC Laser International Logistics
Tenant 2 Quarry Park Place Erf 01 Ptn 154 Didn't participate
60 Genmatics Workshop Owner U5, 21 Quarry Park Place
Erf 01 Ptn 110 Didn't participate
61 Gijima AST Tenant U5, 12 Kubu Avenue Erf 01 Ptn 040 Didn't participate
62 Gottlieb Group Owner 11 Quarry Park Place Erf 01 Ptn 111 Interviewed
63 Greenville Trading 463/Yi Han
Tenant Interviewed
64 Grenville Trading 463/Yi Han
Tenant S10, 80 Corobrik Road Ptn 85-S10 Interviewed
65 Grid Construction U3, 12 Kubu Avenue Erf 01 Ptn 040 Didn't participate
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STATUS
66 Grom Trading (Pty) Ltd Owner U2, 21 Quarry Park Place
Erf 01 Ptn 110 Didn't participate
67 Group 5 KZN Tenant 41 Island Circle Erf 01 Ptn 010 Interviewed
68 Hellman Worldwide Logistics
Tenant 11 Quarry Park Place Interviewed
69 Hi-Tech Polymers Tenant U13, 32 Kubu Avenue Erf 01 Ptn 039 U 13 Didn't participate
70 Index Property Services Managing Agent
80 Corobrik Road Ptn 85 Erf 33 Didn't participate
71 Interstat Agencies Tenant 31-33 Island Circle Erf 01 Ptn 069 Interviewed
72 ISLAND BRIDGE OFFICE PARK
23 Island Circle Erf 01 Ptn 001 Didn't participate
73 Kevro KZN Tenant 39 River Horse Road Erf 01 Ptn 120 Didn't participate
74 Kolok & OCE Tenant 1 Island Grove Erf 01 Ptn 027 Didn't participate
75 Kovco Owner U3, Imvubupark Place Erf 01 Ptn 058 Interviewed
76 KPH Logistics U8, 57 River Horse Road Erf 01 Ptn 123 Didn't participate
77 Luxor Paints Tenants U5, 32 Kubu Avenue Erf 01 Ptn 039 U 05 Interviewed
78 Macadams International Owner 10B Kubupark Close Erf 01 Ptn 084 Interviewed
79 Mandos Auto Panels Owner U2;3;7, 90Corobrik Road Erf 01 Ptn 063 Didn't participate
80 Massmart Tenant 10 Quarry Park Place Erf 01 Ptn 134 Didn't participate
81 MCT Telecommunications Tenant U14, 21 Quarry Park Place
Erf 01 Ptn 110 Interviewed
82 Midas Group Tenant 35 Imvubupark Place Erf 34 07 Interviewed
83 Milnex 142 cc Tenant U9, 57 River Horse Road Erf 01 Ptn 123 Interviewed
84 Minnies Food Enterprise CC Tenant 29 Island Circle Erf 01 Ptn 004 Didn't participate
85 Minolta Tenant 1 Island Grove Erf 01 Ptn 027 Didn't participate
86 Mipaq Properties Tenant U18, 32 Kubu Avenue Erf 01 Ptn 039 U 18 Didn't participate
87 Mr Price Group Tenant 350 Umhlangane Road Erf 01 Ptn 098 Interviewed
88 Multi Media Print Technology
Owner 1 Kubu Avenue Erf 01 Ptn 042 Didn't participate
89 Natal Stainless Steel Owner U3, 21 Quarry Park Place
Erf 01 Ptn 110 Interviewed
90 NMI Durban South Motors (Pty) Ltd t/a Mercedes Benz Comm Vehicles Durban
Owner 5 Hippopark Avenue Erf 12 Ptn 1 Interviewed
91 Nomedic Owner U5,90 Corobrik Road Erf 01 Ptn 063 Interviewed
92 Origin Aluminium Tenant U3, Imvubupark Close Erf 01 Ptn 105 Didn't participate
93 Otto Bros Tenant 21 Kubu Avenue Erf 01 Ptn 038 Didn't participate
94 P&L Agencies Tenant U25, 32 Kubu Avenue Erf 01 Ptn 039 U 25 Didn't participate
95 Page Automation Tenant U6, 32 Kubu Avenue Erf 01 Ptn 039 U 06 Interviewed
96 Panbro Plastics Owner 10 Imvubupark Close Erf 01 Ptn 107 Interviewed
97 Parmalat KZN Tenant 9 Imvubupark Place Erf 01 Ptn 056 Interviewed
98 Petroport Durban Interviewed
99 Petropulp Stainless Steel Tenant S12, 80 Corobrik Road Ptn 85-S12 Interviewed
RIVER HORSE VALLEY BUSINESS ESTATE DRAFT 2: IMPACT ASSESSMENT
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STATUS
100 Pharmed Pharmaceuticals Owner 31 Imvubupark Close Erf 01 Ptn 106 Interviewed
101 Photonote Owner U4, 21 Quarry Park Place
Erf 01 Ptn 110 Interviewed
102 Plessey South Africa Tenant 10D Kubupark Close Erf 01 Ptn 084 Didn't participate
103 Prosound (Pty) Ltd Tenant U2, 11 Imvubupark Close
Erf 01 Ptn 105 Didn't participate
104 Proximity Properties 219 Interviewed
105 Purple Rain Tenant U3&4, 57 River Horse Road
Erf 01 Ptn 123 Didn't participate
106 R & R Marketing Tenant U2, 23 Island Circle Erf 01 Ptn 001 Didn't participate
107 RAM Hand to Hand Couriers
Owner CEDAR PARK U1, 21 Quarry Park Place
Erf 01 Ptn 110 Interviewed
108 Reid Raetzer Owner 21 River Horse Close Erf 01 Ptn 138 Interviewed
109 Rewards Co Tenant U1, 10 Hippopark Avenue
Erf 17 of 1 Didn't participate
110 Rewardsco Contact Centres (Pty) Ltd
Chairman 10 Hippopark Avevnue Erf 17 of 1 Didn't participate
111 Rex Diff & Gearbox Tenant U6, 45/47 Island Circle Erf 01 Ptn 100 U 06 Didn't participate
112 Ricoh South Africa Tenant 2 Kubu Avenue Erf 01 Ptn 041 Interviewed
113 RIVERBEND OFFICE PARK Managing Agent
45/47 Island Circle Erf 01 Ptn 100 Didn't participate
114 River Horse Caterers Tenant U26, 32 Kubu Avenue Erf 01 Ptn 039 U 26 Didn't participate
115 RJ Southey Owner 24A Island Circle Erf 01 Ptn 034 Interviewed
116 Roan Systems Tenant U12,32 Kubu Avenue Erf 01 Ptn 039 U 12 Interviewed
117 Robert Bosch PTY (Ltd) Tenant U24, 32 Kubu Avenue Erf 01 Ptn 039 U 24 Interviewed
118 Roco Fittings Tenant U1, 45/47 Island Circle Erf 01 Ptn 100 U 01 Didn't participate
119 Royal Vulcanizing Station Interviewed
120 RRCO Investments Tenant U3, 23 Island Circle Erf 01 Ptn 001 Didn't participate
121 RTT Durban - Fuel Group Tenant 24 Imvubupark Place Erf 34 01 Didn't participate
122 Russet Properties Owner 10A Kubupark Close Erf 01 Ptn 084 Didn't participate
123 SAAB Grinteck Tenant S3, 80 Corobrik Road Ptn 85-S03 Interviewed
124 Sahib Foods Tenant S4, 80 Corobrik Road Ptn 85-S04 Didn't participate
125 Saint Gobain Gyprol SA Tenant 52 Kubu Avenue Erf 05 Ptn 1 Interviewed
126 Scheinder Systems Tenant 02 Corobrik Road, River Horse Road
Erf 01 Ptn 118 Didn't participate
127 Schenker Logistics Tenant 40 Corobrik Road Erf 01 Ptn 068 of 50 Didn't participate
128 Service Parts Logistics Tenant U22, 32 Kubu Avenue Erf 01 Ptn 039 U 22 Interviewed
129 Signature Imports Tenants U9, 32 Kubu Avenue Erf 01 Ptn 039 U 09 Didn't participate
130 Silvertron 487 cc 35-39 Island Circle Erf 01 Ptn 099 Didn't participate
131 Siyanqoba Worldwide Express
Tenant U11 45/47 Island Circle Erf 01 Ptn 100 U 11 Interviewed
132 Smart Stone KZN Tenant 23 River Horse Road Erf 01 Ptn 118 Didn't participate
133 Snap-on Africa (Pty) LTD Tenant U6, 12 Kubu Avenue Erf 01 Ptn 040 Interviewed
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STATUS
134 Southey Holdings (Pty) Ltd Owner Interviewed
135 Sozo Logistics (Pty) Ltd Tenant 45B River Horse Road Erf 01 Ptn 121 Interviewed
136 Spencer Electrical Tenant U10, 45/47 Island Circle Erf 01 Ptn 100 U 10 Didn't participate
137 Standard Bank Owner 51 River Horse Road Erf 01 Ptn 122 Didn't participate
138 Standard Yoke & Timber Owner 10 Corobrik Place Erf 01 Ptn 089 Didn't participate
139 Steves Auto Clinic Owner U9, 2 Corobrik Road Erf 01 Ptn 094 Interviewed
140 Sutherland Home Furnishing
Owner 25 Island Circle Erf 01 Ptn 002 Didn't participate
141 SWT Solid Wast Tenant U1,90 Corobrik Road Erf 01 Ptn 063 Didn't participate
142 Tandem Lawn Industries Owner 5 Imvubupark Place Erf 01 Ptn 083 Didn't participate
143 Team Clothing & Gifts Tenant 39 River Horse Road Erf 01 Ptn 120 Interviewed
144 TEESAV Tenant U5, 45/47 Island Circle Erf 01 Ptn 100 U 05 Didn't participate
145 Tegs Timbers / J & K Timbers (Pty) Ltd
Owner 10 Corobrik Place Erf 01 Ptn 089 Interviewed
146 Tegwen Agencies Owner U1, 23 Island Circle Erf 01 Ptn 001 Didn't participate
147 The Hardy Boys Tenant U3, 10 Hippopark Avenue
Erf 17 of 1 Interviewed
148 The Natal Witness Tenant 43 Imvubupark Place Erf 34 05 Interviewed
149 The Smart Food Company Tenant S11, 80 Corobrik Road Ptn 85-S11 Interviewed
150 The Supplement Tenant U16, 32 Kubu Avenue Erf 01 Ptn 039 U 16 Didn't participate
151 Time Freight Tenant 2 Quarry Park Place Erf 01 Ptn 154 Interviewed
152 Trentyre Tenant 2 Kubu Avenue Erf 01 Ptn 041 Interviewed
153 Tri Star Technology Owner 43 Island Circle Erf 01 Ptn 011 Interviewed
154 Trumpeter Publishers Tenant U21, 32 Kubu Avenue Erf 01 Ptn 039 U 21 Interviewed
155 Umpheme 16 Imvubupark Place Erf 32 Ptn 01 Sec01 Didn't participate
156 Unichem Services Tenant 27B Island Circle Erf 01 Ptn 003 Didn't participate
157 Unilever Owner 69 River Horse Road Erf 01 Ptn 157 of 125
Interviewed
158 Uniplate/Falcon Tenant U6, 2 Kubu Avenue Erf 01 Ptn 041 Didn't participate
159 United Power Purchasing Tenant S16, 80 Corobrik Road Ptn 85-S16 Interviewed
160 Unitrans Tenant 20 Imvubupark Close Erf 01 Ptn 108 Didn't participate
161 UTI Pharma Tenant 25 Imvubupark Place Erf 34 04 Interviewed
162 Uvex Safety SA Tenant 2 Kubu Avenue Erf 01 Ptn 041 Interviewed
163 Valve Specialists Owner U10, 2 Corobrik Road Erf 01 Ptn 094 Interviewed
164 Vega School Tenant 16 Imvubupark Place Erf 32 Ptn 01Sec02 Interviewed
165 Vodacom Tenant U1, 11 Imvubupark Close Erf 01 Ptn 105 Didn't participate
166 Vulcan Catering Equipment Tenant 1 Island Grove Erf 01 Ptn 027 Interviewed
167 Waltons Warehouse 69 River Horse Road Erf 01 Ptn 158 of 125
Interviewed
168 Widex Tenant 22 Island Circle Erf 01 Ptn 018 Interviewed
169 Xtreme Enterprise Tenant U7, 32 Kubu Avenue Erf 01 Ptn 039 U 07 Interviewed
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STATUS
170 Ygi Tenants U19, 32 Kubu Avenue Erf 01 Ptn 039 U 19 Didn't participate
171 Zan Technologies cc Tenant S7, 80 Corobrik Road Ptn 85-S07 Interviewed
172 Zest Electric Motors Owner 51 Island Circle Erf 01 Ptn 015 Interviewed
173 Owner 5 River Horse Close Erf 01 Ptn 135 Didn't participate
174 Aristocrat Owner U7 45/47 Island Circle Erf 01 Ptn 100 U 07 No longer in River horse Valley
175 Mitras Amenities Tenant S5, 80 Corobrik Road Ptn 85-S05 No longer in River horse Valley
176 Prominent Paints Tenant 2 Kubu Avenue Erf 01 Ptn 041 No longer in River horse Valley
177 Topline Distributors Tenant U9, 45/47 Island Circle Erf 01 Ptn 100 U 09 No longer in River horse Valley
178 Igus Plastics Tenant S14, 80 Corobrik Road Ptn 85-S14 No longer in River horse Valley
179 Topline Distributors Tenant U3, 45/47 Island Circle Erf 01 Ptn 100 U 03 No longer in River horse Valley
180 Thundebolt Graphics Tenant U1, 32 kubu Avenue Erf01 Ptn 039 U01 No longer in River horse Valley
181 Nicaf Traders Tenant S15, 80 Corobrik Road Ptn 85-S15 No longer in River horse Valley
182 Intertrans KZN (ACE Worldwide Movers )
U20, 32 Kubu Avenue Erf 01 Ptn 039 U 20 No longer in River horse Valley
183 Cenprop Owner 37 Island Circle Erf 1 of Ptn 7+99 No longer in River horse Valley
184 MAXPROP MANAGEMENT 02 Corobrik Road Erf 01 Ptn 094 No longer in River horse Valley
Managed Precinct Sustainability Projects
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ANNEXURE C: ACTIVITIES OF THE RIVER HORSE VALLEY BUSINESS ESTATE MANAGEMENT ASSOCIATION
MANAGED PRECINCT SUSTAINABILITY PROJECTS
VALUE THEY CAN BRING TO COMMUNITIES DELIVERED THROUGH PUBLIC PRIVATE
PARTNERSHIP
27 October 2011
(Updated 13 June 2012)
SID Urban Management (Pty) Ltd
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Contents
1. Introduction .................................................................................................................................... 3
2. Wetland Rehabilitation ................................................................................................................... 3
3. Tree Planting Programme ............................................................................................................... 4
4. Urban Trail Network........................................................................................................................ 4
5. International Coastal Cleanup Day ................................................................................................. 5
6. Schools Open Classroom ................................................................................................................. 6
7. Water Quality Testing ..................................................................................................................... 6
8. Informal Vendors ............................................................................................................................ 6
9. Metrorail ......................................................................................................................................... 6
10. Sportsfield Rehabilitation ........................................................................................................... 7
11. Public Transport .......................................................................................................................... 7
12. Walk to Work Initiative ............................................................................................................... 8
13. BEE Certification .......................................................................................................................... 8
14. Other ........................................................................................................................................... 8
a. Mobile Optometry .......................................................................................................................... 8
b. Mobile Banking ............................................................................................................................... 9
c. Clinic ................................................................................................................................................ 9
d. Lower mNgeni Catchment Management Forum ............................................................................ 9
e. eThekwini Environmental Team ..................................................................................................... 9
15. Conclusion ................................................................................................................................... 9
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1. Introduction
Throughout the world, the abilities of Local Government to continue to deliver high levels of
service across all areas is being challenged by many varied social and economic factors.
Nowhere is this more evident than in South Africa and eThekwini especially where limited
resources are being channelled into rolling out service delivery into previously under and
unserviced areas. Managed Precincts (i.e. Management Associations, Urban Improvement
Precincts, Special Ratings Areas, Priority Zones, etc) are a mechanism increasingly being used to
manage areas positively and provide additional top-up services, paid for by way of levies, by
those who benefit from them through enjoying a potentially higher quality and value urban
environment. The benefits of this, while not being the purpose of this report, are many and
varied including improved investment and retention/growth of property values, which in turn
increase tax income for both national and local authorities.
Managed Precincts have on occasion however, been considered by local government to be elitist
and exclusionary, serving the interests only of the well to do middle classes. The purpose of this
report is to highlight how the opposite can in fact be the case. An inclusionary approach to
managed precincts as taken by SID Urban Management (Pty) Ltd, is one which recognises
communities, both within and neighbouring respective precincts, and embraces their varied
relationships and involvement in each precinct. This is further leveraged by engaging in positive
Public Private Partnerships (PPP’s) with Local Government and private companies, where
Management Associations can act as both facilitator and active participant. Examples of
Sustainability Projects both delivered and planned will be briefly described, highlighting current
and future challenges, as well as noting respective liaisons and local authority departments.
The majority of these projects have been planned and tested within Riverhorse Valley Business
Estate by the RHVBE Management Association in association with SID Urban Management. The
belief is that as each is piloted, refined and delivered here, they can be considered for replication
elsewhere where appropriate.
2. Wetland Rehabilitation
As a Riverhorse Valley Business Estate (RHVBE) – eThekwini Public-Private Partnership Project,
bulk earthworks for the rehabilitation of 41 hectares of wetland along the Umhlangane River
(previously under sugar cultivation but lying fallow since the development of the area) within
Riverhorse Valley Business Estate is to commence shortly, funded to a large degree by
eThekwini’s Coastal, Stormwater & Catchment Management Dept ( foreign funding from the City
of Bremen in Germany as part of eThekwini’s developing relationship with partner cities has not
been successful). Currently the project is awaiting DAEA approval before work can commence
on site.
Completion of the project and ongoing maintenance (including clearing of alien invasive species)
will be funded by RHVBE Management Association funds. Efforts are also underway to secure
maintenance funding from corporate donors resident within RHVBE, international donors
accessed via both COP17 visitors and the Durban Chamber of Commerce and Industry’s
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Environmental Committee, as well as National Government’s Extended Public Works
Programme.
RHVBEMA recently participated in two full day workshops arranged by the City, evaluating the
entire Umhlangane River catchment area and developing scenarios for both environmental and
social benefit.
eThekwini’s Gary Cullen (031 311 4235 – Economic Development Unit) and Geoff Tooley (031
311 7271 – Water Engineering) have been pivotal in this project.
3. Tree Planting Programme
In additional to the RHVBEMA’s extensive ongoing public area landscape maintenance
operations (including alien invasive species removal), a sum of R750 000 project funding has
been allocated to be spent by the RHVBEMA over a period of 3 years, to plant new indigenous
trees within the riverine environment alongside the Umhlangane River. This is being
supplemented by “offset taxes” imposed by RHVBEMA on top structure developers who were
unable to fully comply with their internal landscaping requirements per the RHVBE Design Code.
The first phase of this planting carried out in Spring 2012 is complete, taking advantage of good
soil and moisture conditions. Phase 2 and if necessary Phase 3 will roll out in Spring 2012 and
2013 respectively.
All plants have been sourced from small growers within the region, ensuring direct economic
benefit to these growing communities. Access to trees sourced in a similar way in the future
with the possibility of a Tongaat Hulett initiated nursery on the Umhlodti stable site, will assist
here as well as assist in ensuring viability of such a nursery.
Tongaat Hulett Developments, Musa Shabane (031 560 1900) is promoting the Nursery project.
The RHVBEMA hopes to access additional project labour for the planting seasons during 2012 &
2013 by way of the National Government’s Expanded Public Works Programme (EPWP). Support
by eThekwini of this application will be of great value.
4. Urban Trail Network
RHVBEMA is an active participant in the City’s Green Corridor Programme, with the view that
riverside trails as recently mapped by a specialist tour guide on behalf of eThekwini, will form
part of a larger trail network linking the mouth of the Umgeni (Green Hub building) to RHVBE
and Bridge City beyond, as a tributary of its main focus linking Inanda Dam to the Umgeni river
mouth. These will be used by trail runners, walkers, mountain bikers and bird watchers along its
length with both active and passive recreation supported. Importantly it is also anticipated that
it will provide a traffic free route for communities along its length using non-motorised transport
(bicycles), to access employment opportunities within the Durban CBD or other suburbs/zones
along the Corridor, e.g. Bridge City & Phoenix Industrial Park.
The long term vision of RHVBE is to develop additional complementary trails which can be seen
as an extension and integrated part of Durban’s Green Corridor Programme, to be used for both
active and passive recreational pursuits. It is also envisaged that parts of these trails will enable
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access into densely vegetated areas in order to facilitate identification and removal of alien
invasive plant species.
It is our vision therefore to introduce an additional set of trails within the boundaries of RHVBE,
creating an urban trail network which will attract users from within the daytime business
community (before work, lunch time and after work), as well as those users residing in the
various neighbouring residential communities, some of whom already make use of the informal
trails.
A specialist trail design and building company has been commissioned to investigate and design
a masterplan for potential trails and routes within RHVBE complementary with the Green
Corridor, with an emphasis on Huletts Bush. The design is now finalised and funding is to be
sourced for construction of these trails. They will be constructed using local labour as has been
done with the 110km of trail introduced by eThekwini around Inanda Dam. Trail maintenance
and security are to be provided with assistance of local labour from Quarry Heights and Simms
Place informal settlements in the form of “Trail Rangers”. This is consistent with our vision at
RHVBEMA to encourage and facilitate regular use of this riverine environment by members of
adjacent communities as well as create employment opportunities which are meaningful and
sustainable.
The clearing of areas of bush and trees to facilitate the creation of trails within Hullets Bush, will
be done with a view to removing alien invasive plant species and as such, provide an
environmental benefit to the area. This vision will continue post completion where Trail
Rangers will be involved with trail maintenance and invasive clearing on an ongoing basis.
Regarding access and indemnity, an option is to align the proposed trails with those on Tongaat
Hulett sugarcane farmland north of Umhlanga & Mt Edgecombe, where access is strictly
governed by the Ethekwini Mountain Bike Association (EMBA) on condition that each rider sign
an annual indemnity and is identified by a uniquely numbered board. This would be preferable
to setting up an independent process specifically for RHVBEMA. Suitably worded signage at all
access points would need to point out that use of the trails implies acceptance of risk by users in
order to protect the City, RHVBEMA and any other parties (e.g. sponsors/funders). Despite
these disclaimers, the entire project is based on having sufficient measures in place to provide a
reasonable level of safety for users, without which the project will not succeed.
5. International Coastal Cleanup Day
RHVBEMA for the 3rd year hosted its annual river cleanup along stretches of the Umhlangane
(Friday 16 September 2011), the afternoon prior to the International Coastal Cleanup Day. This
was supported by RHVBE businesses and Schools which enthusiastically participate each year.
(This has been extended to include recycling education and provision of collection bins at
Quarry Heights Primary school itself).
The purpose is many fold, including educating school children about the impact of littering and
its environmental cost, as well as encouraging RHVBE businesses to engage first hand with the
river that many have views of but don’t yet access as a recreational opportunity. By hosting on
the Friday prior to the Saturday coastal cleanup (in addition to making it attractive and
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accessible to businesses and schools), it highlights the importance of treating the problems of
littering at their source rather than merely attending to the effect of this and the need to clean
up the coastline of litter, much of which is carried to the coast via rivers. As many schools
become involved in the river clean up this year, we staggered the sessions and separated school
(morning) and corporate (afternoon) participation to allow a meaningful opportunity for all
participants. Umgeni Water and Durban Solid Waste representatives gave short lectures to
learners to add to the learning experience.
6. Schools Open Classroom
Our involvement with other schools in adjacent communities is growing with a vision that the
natural riverine areas within RHVBE be accessible to school groups as an open classroom for
experiential learning appropriate to their various curricula. This concept was presented to the
Principals Forum made up of approximately 20 local school leaders who meet regularly, and was
positively viewed. Our long term view is to provide a small classroom type structure which can
be used to reinforce the Open Classroom activity.
7. Water Quality Testing
In addition to liaising with eThekwini’s water quality testing operations, RHVBEMA have
commenced its own supplementary water quality testing, the results of which are shared with
eThekwini on a monthly basis. Readings taken at 3 points along the Umhlangane River within
RHVBE allows us to monitor water quality overall and could highlight potential upstream
infringements by businesses or facilities discharging illegally, and provide appropriate support
for effective enforcement. Water quality testing may well form part of school curricula and
could be one aspect of experiential learning carried out in our open classrooms.
Liaison – Mlungisi Mahlobo, Pollution and Environment Branch, eThekwini Water and Sanitation,
031 311 8735
8. Informal Vendors
Informal vendors are accommodated at designated locations within the Estate and provide a
valuable retail service to much of the pedestrian traffic as workers make their way both to and
from their places of work. Awarding of permits is controlled by the City’s Small Business Support
Unit who also assist with enforcement if required.
RHVBEMA is attempting to source shelter of a uniform type for the sites, creating a more
structured perception and branding for the Estate. Efforts are underway to recycle unused
vendor/bus shelters from elsewhere in the city.
Liaison – Justice Dlamini, eThekwini Small Business Development Unit, 031 311 4612.
9. Metrorail
The Effingham Station falls within the boundaries of RHVBE and has become one of their most
profitable in eThekwini with in excess of 6000 journeys/passengers passing through per day.
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Collaboration with Metrorail, the managers of the Effingham Station has been initiated on
various occasions with a view to amongst other projects, synchronising their security service on
the station platform with backup from the RHVBEMA CCTV control room and rapid response
vehicle, recycle the station’s collected litter as part of RHVBEMA’s wider litter picking and
recycling programme, as well as co-ordinating their landscaping service with that of the
RHVBEMA to facilitate alien invasive species removal and maintenance. The RHVBEMA was
advised that the pedestrian bridge which only provides access to the platform from one side
(Corobrick Road) and is in need of structural maintenance was to be upgraded or replaced.
Unfortunately all promises to liaise with RHVBEMA in this regard have not been fulfilled, as has
been the case with the various other initiatives being driven by RHVBEMA.
10. Sportsfield Rehabilitation
An aspect missing from the original design for RHVBE was the provision of suitable active
recreational areas for staff of the many businesses resident here. There is an active football
league with highly competitive matches being played between teams representing various
companies within RHVBE. To assist with providing a suitable nearby facility on which these
matches can be played, the RHVBEMA initiated talks with eThekwini’s Parks, Leisure &
Cemeteries Dept with a view to assisting to enhance and maintain the public sports field on the
northern side of RHVBE. Agreement was reached for the RHVBEMA to fund various project
components (construct pedestrian access to the field from parking area, levelling and improving
of pitch surface and litter/rubble cleaning, plumbing irrigation infrastructure, combined with
visiting the area by the security patrol vehicle as part of its routine patrols, provision of signage
and goalposts). In return, eThekwini would upgrade the field previously a “kick-about” which
only got mowed monthly and was not marked, to “soccer field” on their asset list with weekly
mowing and marking to enable proper football matches to be held not just by the staff teams
but also neighbouring schools and sports clubs, with booking being carried out by the Parks,
Leisure and Cemeteries Dept as is the norm.
Sadly participation by Parks, Leisure and Cemeteries has been poor and communication difficult
although we are still hopeful in completing this project for the benefit of various communities.
Victor Chetty, eThekwini Parks, Leisure & Cemeteries, 031 311 6976.
11. Public Transport
Public transport service into this relatively recently developed precinct was always envisaged to
be provided by minibus taxis. Currently 3 Taxi Associations converge on RHVBE, bringing
associated political tension between them. We have through eThekwini Transport Authority
(ETA) attempted to facilitate a co-ordinated taxi service to assist public transport users who
work within RHVBE and have need of their services. This process commenced in 2009 and
despite several efforts to highjack it for purposes of fulfilling personal agenda and route control,
we believe we are very close to having a functioning service evenly supported by the 3
converging taxi associations, improving service to the daytime community of RHVBE who need
to get to and from their places of work.
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We are also attempting to have the 3 representative associations provide a daytime internal
service to allow train commuters to easily and cost effectively access their places of work,
although fresh energy will be put into this initiative once the main routes are finally approved by
authorities.
Beyond this, suggestions regarding suitable positions of taxi lay byes by RHVBEMA have been
made to ETA in order enable budgeting and provision for this essential component without
adding to current peak time road congestion.
12. Walk to Work Initiative
This initiative is borne from efforts to connect unemployed members of communities
neighbouring on RHVBE, with work opportunities potentially offered by businesses here.
Following various interactions with local Ward Councillors and community representatives, we
have collected a database of candidates who comply with the requirement that they live close
enough that they could “Walk to Work”. This is not only practical and convenient for employers
and employees alike, but it is also consistent with current town planning strategy to locate
people near to where they might work. Success has been achieved with the placement of a
small number of candidates with service providers who contract with RHVBEMA. We envisage
further placements of candidates with RHVBE businesses in the future.
Our next step is to synchronise these CV’s with eThekwini’s online jobs portal, retaining their
geographic criteria, but increasing their visibility to a wider audience.
13. BEE Certification
SID Urban Management together with Tongaat Hullet Developements, with support from
Garlicke & Bousefield Attorneys, are currently exploring the Black Economic Empowerment (BEE)
certification of Management Associations, of which RHVBEMA will be a pilot. Once certified, all
donor project funding by private entities channelled via Management Associations, will be
eligible for earning of BEE points to be used in mandatory annual submissions by companies
above the specified threshold. It is anticipated that this will filter down to allow the earning of
BEE points to all property owners through the process of paying their monthly levies. This could
assist greatly in the structuring of Public Private Partnerships for projects within RHVBE.
14. Other
a. Mobile Optometry The Specsavers mobile optometry van has been used to provide an occasional service
for the benefit of employees here providing a convenient service.
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b. Mobile Banking We sadly have not been successful in engaging any of the major banks to regularly
position their van based mobile ATM’s within RHVBE for the benefit of workers here.
This has been enormously frustrating as it would be great time saver for staff and their
employers as there is no ATM service in the area with the exception of the hospital
which is not practical for users on the Eastern side of the Precinct. This is despite it
being a weekday suggestion when the ATM vehicles are in low use.
The two filling stations planned to be developed within RHVBE will include ATM facilities
which should solve this problem in time.
c. Clinic Mobile clinics were carried out in the past, similar to the optometric visits. These no
longer are required as the service has been taken up by the clinic in an adjacent
neighbourhood.
d. Lower mNgeni Catchment Management Forum Members of the RHVBEMA management team actively attend and participate in the
Lower mNgeni Catchment Management Forum, a cross departmental initiative run by
eThekwini. This has been a valuable platform to highlight various initiatives driven by
RHVBEMA and to engage with representatives from associated local and provincial
organisations which represent the interests of this river and its catchment areas.
e. eThekwini Environmental Team Similarly, the RHVBEMA is represented at meetings of the cross departmental eThekwini
Environmental Team which focuses on environmental issues and education of learners
amongst other goals.
15. Conclusion Managed Precincts such as Riverhorse Valley Business Estate are centres of excellence, achieved
not just through the provision of topup services to augment those provided by the City, and
importantly not achieved by excluding or marginalising outsiders. Excellence is achieved rather
through an inclusive approach which recognises the interests of the property owning
community, the daytime working community, and those of neighbouring suburbs who in some
cases become Riverhorse Valley’s weekend community. This vision is consistent with that of
Local Authorities across the country and in fact the world, lending Managed Precincts in their
various forms to be used as a vehicles for improving the quality of life for all these communities
through both the delivery of high quality urban environments and associated sustainable
projects, often by way of shared responsibilities in the form of Public Private Partnerships.
Trevor Pierce-Jones
SID Urban Management