The Coega Development Corporation (CDC) announced today that several construction projects in the Coega Industrial Development Zone (IDZ), collectively worth R4-billion, are on track and will reach completion before the second quarter of the 2015/16 financial year.
About 2400 people are currently employed at the IDZ and Port at present, 70% of which are Nelson Mandela Bay-based residents.
“The construction boom is a clear sign of positive business growth and investor confidence in the Eastern Cape and the South African economy,” said Dr. Ayanda Vilakazi CDC head of marketing and communication.
Projects currently under construction include the Dedisa Peaking Power Plant (R3.5-billion), the Digistics Logistics expansion (R32-million), ID Logistics (R53-million), the cold storage facility for Vector Logistics (R130-million), the UTi Distribution Centre (R30-million) and Afrox’s air separation unit (R300-million).
“Construction is progressing well at the Dedisa Peaking Power Plant, with over 1 100 construction workers on the site,” said Sandisiwe Ncemane, business development manager for energy projects.
“The facility, consisting of two open-cycle gas turbines (OCGTs), when finished, will produce 342MW or half of Nelson Mandela Bay’s power requirement. Construction began last year and the plant is scheduled to go online towards the end of the second quarter of the 2015/16 financial year,” added Ncemane.
Air Products officially launched its newly constructed R300-million air separation unit in the IDZ earlier this month. Nine operational jobs and 309 constructions jobs were created.
Hot on their heels is Afrox, which is in its final leg of commissioning and will start operating as early as the first quarter of next year. Construction activity has created employment opportunity for 174 local construction labour.
According to Johan Fourie, CDC senior business development manager, UTi Distribution is also wrapping up construction and is expected to operate from its new larger premises mid-January. The company currently operates from a 2 700m² building within the IDZ and this is representative of solid local growth.
“ID Logistics will create work for 50 people once operational and in the construction phase 94 people are benefitting from jobs created. Construction is expected to be completed in March next year,” said Fourie.
Digistics Logistics has outgrown its current 2 285m² facility in Zone 1 of the Coega IDZ – a space it has occupied for six years – for a larger 4 510m² facility. Construction of the new Digistics warehouse started at the end of September this year. There are 31 construction workers benefitting from the project and once completed 30 people will be permanently employed. It is expected that construction will be completed by the end of May next year.
Vector Logistics started construction in July this year and have created 153 construction jobs and 90 people will be employed once operational. It is expected that construction will be completed by May next year.
“Investment and industrial economic activity in the Coega IDZ is playing a critical role in stimulating local and national South African construction activities. This is especially important and relevant because it counteracts the systemic and intergenerational poverty in the Eastern Cape, through consistent job creation and the incumbent opportunities offered by increased investment in the region,” Dr. Vilakazi said.
In addition to construction activities in the IDZ, the CDC is also leading construction in other parts of the country as an implementation agent for government.
Through its ongoing Eastern Cape School Building Programme, the CDC implemented a total of 73 projects with a value of R638-million on behalf of the Department of Education this year.
This portfolio included emergency schools, early childhood centres, technical workshops and the eradication of mud structures throughout the Eastern Cape. In the last financial year, a total 27 schooling facilities were completed and handed over to end-users, the Eastern Cape Department of Education.
The CDC was appointed as an implementing agent for the Department of Health in December 2013 in the Eastern Cape and undertook 56 projects valued at estimated R4-billion. These projects include clinics, community health centres, hospitals, forensic pathology laboratories, nurses’ colleges and other related infrastructures.
Alan Straton
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