Phase 1 of East London project gets underway

LOCATED ON the city's West Bank, the East London Industrial Development Zone (IDZ) is part of an initiative endorsed by the South African Department of Trade and Industry to encourage enconomic growth and to attract investment by offering world class infrastructure and services.
It was designated and gazetted last month following earlier delays, and the East London Development Zone Corporation (ELDZC), the IDZ implementing agent, is currently canvassing joint venture equity and operation partners.
The IDZ will be developed and serviced in phases, according to a spokesperson.
Currently Phase 1 includes 20 ha, which is fully serviced and construction is currently underway in this area for two major international investors.
Phase 1A is a designated Customs Secured Area (250 ha) with its own customs facilities and personnel. Phase 1 B (110 ha) adjacent to Phase 1A is an Industrial Services area.
The ELDZC has identified 42 projects for the IDZ and of these 12 pre-feasibility studies have been completed.
Projects identified include motor component manufacturing, optical fibre manufacturing, metal press stamping mill, aluminium and magnesium high pressure moulding, pharmaceuticals, ceramics, wood products and textiles.
The ELDZC is facilitating the process of positioning East London as the motor industry hub port for South Africa and Africa.
The National Ports Authority has commissioned a study to investigate a new container terminal on the West Bank or an extension of the port and Spoornet has commissioned a study on the upgrade of the rail link between East London and Gauteng.
Expressions of interest from engineering companies are soon to be called for, with a view to undertaking the detailed engineering design for infrastructure. Proposals will be called for and possible service providers will be evaluated and short-listed.
Once the design is completed, earthworks for Phase 1A and 1B will begin, involving R270 million worth of infrastructure development including services to the tune of R165 million.
Investments of R400 million have been concluded for Phase 1 of the IDZ, and earthworks and site clearing are currently underway for the two manufacturers.
An agreement on the package of local incentives that will be offered by the ELDZC is expected to be finalised shortly, and negotiations with the Buffalo City Municipality are underway.
The local government incentive packages will revolve around discounted service costs, as well as reduced rates.