Coega to attract investors

Posted On Tuesday, 20 February 2001 03:01 Published by eProp Commercial Property News
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Work starts on the first phase of a R1,65bn deep-water port.

Property-Housing-ResidentialPort Elizabeth The Coega Development Corporation is to embark on an international roadshow to attract foreign investors to the multibillion-rand Coega project in the Eastern Cape.

The first phase of the deepwater port and industrial development zone at Coega started yesterday.

This followed President Thabo Mbeki's recent announcement that Coega will be the site of SA's first industrial development zone, which will be gazetted next month.

The zone will offer a number of incentives, possibly including a duty-free area and rebates on rates, power and transport, but officials were sceptical yesterday that tax breaks would be included.

Government will pump R500m into building road, rail, power, water and telecommunications links in the zone.

Transnet's harbours group, Portnet, will spend R1,65bn on the first phase of a deep-water port, called the Port of Ngqura.

Pepi Silinga, CEO of the Coega Development Corporation, a government entity established to drive the project, said yesterday Coega would be marketed in earnest internationally.

A roadshow would start in London soon, largely targeting European countries such as Germany and Sweden and could include Asian nations.

Industries to be focused on include the auto, metallurgical, construction, electronic and technical sectors.

'We are already talking to a range of tenants, some of which have indicated they will relocate to Coega, but we will only release their names once this has been finalised,' Silinga said.

The German consortium Ferrostaal was still conducting a feasibility study into building a steel manufacturing plant at Coega, he said.

Officials expect a response from Ferrostaal by April.

Asked what effect Ngqura Port would have on Port Elizabeth Harbour, Silinga said they would complement one another as the city was expected to be developed into a leisure and fishing harbour while Coega would focus on large freight ships.

Eastern Cape MEC for economic affairs and tourism Enoch Godongwana said that despite what the cynics said, government was committed to building Coega.

'While we do not believe Coega is the economic salvation of our province, (it) is an integral building block in the regeneration process,' he said.

Siyabonga Gama, CEO of Portnet's port authority division, said that Portnet would spend R25m to begin the harbour development.

It had already spent R51m researching the project.

Gama said that with the proposed Coega industrial development zone contiguous to the Port of Ngqura, government's aim for a new export driven manufacturing sector would be achieved. The port and the zone would assist in bringing investment to the Eastern Cape.

Portnet, port authority division and the Coega Development Corporation will be co-operating on the technical development of the port and the industrial development zone. This will ensure a seamless integration of the marine and land site infrastructure.

Last modified on Wednesday, 25 June 2014 18:16

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