MAYOR’S ADVISORY PANEL Infrastructure and Investment Overview 8 June 2016
SECTOR FOCUS ECONOMIC Metals beneficiation Aluminium Titanium Iron ore Agro-processing ICT Pulp, Techno-parks Horticulture & Innovation Hub meat production Richards Bay IDZ Renewable & Port Clean energy optimization Solar Containerization, Fuel cells Ship/rig building & repair Biomass Oil & Gas 2 LNG
RBIDZ 50 YEAR MASTER PLAN EXPANSION
DEVELOPMENT STATUS PHASE 1A: COMPLETED PROJECTS Project Status Funding Allocated Benefits Fencing Completed R 7 million 20 construction jobs Mar 2012 Stage 1 Bulk Earthworks Completed R 35 million 261 construction jobs (22Ha) Apr 2012 Engineering Paid to uMhlathuze R 74,5 million Construction jobs Contributions Municipality Aug 2012 Rezoning and Revision Completed June 2013 Undertaken in-house General & Light industrial of Phase 1A Layout mix Registration in Deeds Completed August 2013 Undertaken in-house Land is transferable Office Phase 1A Stage 1 Civil Completed Mar 2014 R 28 million 400 Construction jobs Engineering Services
DEVELOPMENT STATUS PHASE 1A: COMPLETED PROJECTS Project Status Funding Benefits Allocated Stage 2 Bulk Completed Sep 2014 R 139 million 1200 construction jobs Earthworks (46 Ha) Phase 1A Stage 1 Completed Oct 2014 R 33 million 200 Construction jobs Electrical & ICT Services Phase 1A Stage 2A Completed Dec 2014 R 18,5 million 300 Construction jobs Civil Engineering Services Phase 1A Stage 2A Completed Mar 2015 R 11 million 150 Construction jobs Electrical Engineering Services
DEVELOPMENT STATUS PHASE 1A: PROJECTS IN PROGRESS Project Status Funding Benefits Allocated Phase 1A Entrance Construction expected to be R 16 million 34 Construction jobs on Gate completed by 20 June 2016 a monthly basis Phase 1A Stage 2B Construction expected to be R 30 million 35 Construction jobs Electrical Engineering completed 31 May 2016 created on a monthly Services basis Medway Road Upgrade Construction commenced on 25 R 46 million Estimated 300 May 2016. Expected completion construction jobs 31 May 2017
PHASE 1A CIVIL INFRASTRUCTURE
PHASE 1A: ELECTRICAL, ICT & CCTV INFRASTRUCTURE
MEDWAY ROAD UPGRADE
MEDWAY ROAD UPGRADE
SPS MOLECOR PIPE MANUFACTURING PLANT 11
SPS MOLECOR PIPE MANUFACTURING PLANT 12
PHASE 1A: SPS MANUFACTURING
SPS Molecor pipe products 14
PHASE 1A: ENTRANCE GATE • Low maintenance sustainable design • Rain water harvesting for irrigation • Solar energy use • Natural lighting and ventilation • Visitors reception area, 12- seater boardroom, 6 x Offices; Ablutions; guardhouse, pedestrian access
BAYSIDE ALUMINIUM SITE • 157 ha • Feasibility study confirmed viability • Office accommodation • One stop shop (TFR, SARS, Customs, EDTEA, IDC) • Gas to Power • 7 consortia • R4 bn/500MW to R40 bn/3000MW • Existing infrastructure into Bayside • In discussion with Jindal Steel for pelleting plant on Bayside site 16
Techno-Park: Overview of Site
PHASE 1A: INVESTOR LAND ALLOCATIONS
PHASE 1F: INVESTOR LAND ALLOCATIONS
DEVELOPMENT STATUS PHASE 1F: PLANNED PROJECTS Project Status Funding Benefits Allocated Installation of Tender awarded 23 Feb 2016. R 50,269,767 Expect to create 50 Civil Construction expected to commence Construction jobs on a Engineering in August 2016. WULA in place, monthly basis. Serviced Services awaiting final EIA approval. land for investment. Alumina Allee Tender awarded 23 Feb 2016. R 39,299,772 Expect to create 35 Road Construction expected to commence Construction jobs on a Upgrade in August 2016. WULA in place, monthly basis. Serviced awaiting final EIA approval. land for investment. Installation of Tender awarded 29 Mar 2016. R 50,500,000 Construction jobs/Land Electrical Construction expected to commence ready for investors. Engineering in August 2016. WULA in place, Serviced land for Services awaiting final EIA approval. investment. Entrance Tenders to be advertised in June R 17,000,000 Construction jobs/Land Gate 2016 ready for investors Complex ICT Tenders to be advertised in June R 30,000,000 Construction jobs/Land Infrastructure 2016 ready for investors Indus Tenders to be advertised in June R 45,000,000 Construction jobs/Land Substation 2016 ready for investors Upgrade
PHASE 1F: WETLAND LIMITATIONS
PHASE 1D: KWAMBONAMBI GRASS & WETLAND LIMITATIONS
APPROVED INVESTMENTS NAME OF INVESTOR PROJECT DESCRIPTION PROJECT VALUE Nyanza Light Metals Production of Titanium dioxide R4.5 bn Elegant Afro Line Manufacturing of Caustic Soda R500 m /Chlorine EMv Nanomaterials Production of Nano Precipitated R250 m Calcium Carbonate materials SPS Manufacturing Pty Manufacturing of PVC_O Pipes R300 m Ltd Pro Star Export Paint Manufacturing of variety of paints R16 m RB Energy Services Machinery and equipment assembly R20 m and repacking
APPROVED INVESTMENTS EMV Nano Materials Prostar Paints Nyanza Light Metals: Titanium dioxide Elegant Afro Chemicals: RB Energy Services Caustic Soda
LOST/DEFERRED INVESTMENTS NAME OF INVESTOR PROJECT DESCRIPTION PROJECT VALUE € 60 m (R1 bn) Mercedes Benz of Truck Assembly Plant South Africa (MBSA) Eagle Pride Power Manufacturing of energy storage R500 m with micro grid system Inoxa Industries Pty Ltd Manufacturing of Cookware R170 m Beijing Automobile Automotive Assembly Plant R11,5 bn International Corporation (BAIC)
LOST/DEFERRED INVESTMENTS
ANTICIPATED INVESTMENTS NAME OF INVESTOR PROJECT DESCRIPTION PROJECT VALUE Hebei Establishment of Steel Plant R60 bn Faratec MRGP MRGP Pipes Manufacturing R400 m D M Solar Solar Panel Manufacturing R650 m Manufacturing Cable Manufacturing Low Voltage Cables manuf. R150 m
ANTICIPATED INVESTMENTS Hebei Iron & Steel Faratec Mrgp Pipe Manufacturing D M Solar Manufacturing
Phase 1F Wetlands Map
Kwambonambi Hygrophilous Grassland
PROPOSED EXPANSION AREAS • Steel plant US$ 6,5 billion • Require >3000 ha • Rail 8 mtpa iron ore from Phalaborwa and Northern Cape Heavy Industry • Import of 2,5 mtpa coking coal Light Industry Commercial N2 35
Issues / Challenges CHALLENGES PROPOSED MITIGATION • LAND CLAIMS Deepen and strengthen stakeholder relationships with affected Balancing Land Claims / Restitution vs parties and Claimants development • REGULATORY APROVALS Establish a robust upfront planning and project approach to key eg, WULA, EIA, Act 70 of 1970, SPLUMA etc initiatives that will require regulatory approvals • Need for seamless integration between Activate sound relationships with approving authorities Thank You application of regulation / compliance requirements and projects delivery mandate • COHESIVE INSTITUTIONAL SUPPORT FOR Active engagements and petitioning of provincial development INDUSTRIALIZATION initiatives needs to be shared with national SOE’s Eg, Transnet, Eskom, Sanral, Water authorities etc Establish solid integration between key initiatives and relevant jurisdictional authorities • MINERAL AND PETROLEUM RESOURCES Need to resolve outstanding issues related to the Bill • DEVELOPMENT AMENDMENT BILL Promulgation of the Act will heighten certainty of gas prospecting Uncertainty regarding the promulgation of the and enhance establishment of sought-after gas hub in Richards Bay Act – impact on fate of licencing and prospecting • BROADEN, DEEPEN & STRENGTHEN ZULULAND Extend scope and presence of Growth Coalition to other GROWTH COALITION PRESENCE & MEMBERSHIP municipalities beyond Mhlatuze to include Ulundi etc Solidify collaboration and participation of local 36 government in Coalition
THANK YOU
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