Strong demand and the resulting need for capacity expansion, coupled with an edge in the market through its state-vet service at the Coega Special Economic Zone (SEZ) has necessitated the second expansive newbuild facility for the SACO CFR Group of Companies.
Situated inside the SEZ adjacent to the Port of Ngqura, the total size of the new facility is 25 000 square metres, of which 4 000 sqm have been set aside for actual warehousing.
But it’s the yard size that adds considerable appeal to the facility.
According to Willie Nel, managing director of the company’s container freight stations, ZacPak, the yard will comprise 5 000 sqm during phase one of development, with an additional 6 000 sqm to expand into if necessary – and by all accounts continued growth seems to be a dead cert.
Group chief executive Dave Graham said there was regional rationale behind the emphasis of yard space over under-roof warehousing.
“We felt that we needed a bigger yard operation, to cater for our growth.”
Graham explained that ZacPak had no option other than constructing a much larger hub close to the company’s current location.
“We simply have to move as we have outgrown the current facility. Because of increased volume for the port we need more space.”
The newbuild also represents a leap of faith for SACO CFR’s projected staying power within the region as, instead of owning land within the SEZ, which is prohibited, it has signed a 99-year lease on the land.
“Although owning the land is not an option, we’ve taken an extended lease and will own the facility, an approach that’s in keeping with SACO’s philosophy worldwide.”
Nel added that the entire facility would represent a state-of-the-art approach in keeping with modern storage technology.
He said although the storage industry across the PE-Walmer area had gained strong real estate momentum, with lots of space not only available but also affordable, ZacPak decided that nothing less than a 21st century facility would do.
“We need something that will complement our current capability,” he said.
“When we opened in Coega it was at a small site and, compared to that the new facility will be double in size.”
Apart from the uptick in general cargo through Ngqura and the appeal among freight forwarders to use a non-vessel owning common carrier (NVOCC) that remains truly neutral, much of ZacPak’s steadying foothold in Coega also has to do with its state-vet licence.
“It was one of the last remaining puzzle pieces when we established ourselves here,” Nel said.
“It took us more than a year to get the licence approved and was our business strategy for Coega from the start.”
Protecting and promoting this position as the only state-vet facility in the SEZ means ZacPak has not only set the bar high for its Coega operation, but has to keep it there.
“It requires proper warehousing principles,” Nel said.
“It must be clean, there must be a pest control programme, and we have to comply with a large set of rules and regulations to become food-grade acceptable. It is a strategic part of our business but alongside serving the region’s agri-industry, we still have our core market, consolidation cargo, to drive.”
In this respect the company foresees steady growth for Ngqura.
“The port has shown that it’s more than capable of absorbing overflow cargo from congestion at the Port of Durban. Its truck turn-around time of four to five hours, compared with Durban’s where day-long delays have become the norm, is a major feather in Ngqura’s cap,” Nel said.
With their current throughput every month between ZacPak’s spread of facilities in Johannesburg and Cape Town, Graham believes the Coega facility has got a lot in store for the SACO CFR Group of Companies’ growing presence in the market.
“It’s our second major newbuild in under a year. We broke ground last July at a new 40 000 sqm build-to-spec facility in Durban and expect occupancy by June. With the Coega facility that most likely will be ready by September this year, we’re looking forward to be well positioned to provide a progressive, exclusively neutral NVO service to our growing base of clients.”
