Demand for Dube TradePort’s property offering proves that location is key
Wednesday, June 11, 2014
Dube TradeZone has recently progressed by “leaps and bounds” and is ahead of its planned milestones. With a lot more expected, the facility is now likely to achieve its intended outcomes far sooner than anticipated in the Master Plan. In a little under 24 months Dube TradeZone has been transformed from serviced stands to a 26-hectare construction site, which has netted Dube TradePort over R 730 million in private investment.
Dube TradePort is understandably upbeat about the seven new industrial developments, which are currently taking shape in the TradeZone, with manufacturing in the electronics sector, packaging and logistics forming the core of the latest investments.
This has prompted the introduction of a specialised clustering approach. The approach concentrates on encouraging and supporting inter-firm collaboration, institutional development and support in targeted industrial sectors that offer the most local economic development potential.
Dube TradePort’s sector strategy includes targeting the cluster development of electronics manufacturers for the Trade Zone. Electronic goods constitute one of the most air-freighted product groups both locally and globally as they are predominantly lightweight, high-value and form part of the ‘just-in-time’ supply chain system.
“We are currently investigating the development of an electronics cluster. A number of key electronic investments are coming into the zone and, with the potential of Special Economic Zone status, we are exploring the supplier linkages in this sector across a wide range of businesses with an emphasis on export and air freight usage,” says Erskine, Dube TradePort’s Property Sales Executive.
Within the electronics sector, two 12 000 square metre facilities under roof - with room to expand - have been leased to international companies. One of these is involved in a Joint Venture with a South African company for the manufacture and assembly of components.
“It is imperative as a South African Logistics Company operating internationally, that sea, air and land modes of transport are utilised to connect the world and Dube Trade Port. Dube TradePort enables easy access to the state-of-the-art King Shaka International Airport, the two harbours, both Durban and Richards Bay. There are also plans for a rail connection as far north as Ballito,” says Shree Property Holdings CEO, Pran Shree.
Shree Property Holdings had the first-mover advantage by identifying the benefits and seeing the long-term vision of being located within Dube TradeZone. The Company made a total investment of R 560 million to construct the mega air freight logistic warehouses expanding to 125 000 square meters. These are being erected adjacent to the Dube Cargo Terminal. Shree Property Holdings has had a positive foresight to choosing the right location to be situated within the property market. Pran attributes this to having a deep understanding that Logistics Company’s accessibility is more important than position.
“Dube TradePort provides intermodal superiority. The tenant profile approaching us for space include the likes of the world’s top 10 logistics firms, such as UPS,” concludes Pran.
When Dube TradePort heads to Cape Town to participate in the 2014 edition of the South African Property Owners Association conference it will be to highlight the opportunities that still exist in the Dube City development. This is a commercial development situated 3 minutes from the passenger terminal that will accommodate hotels, offices and retail outlets as a support zone for the industry that is setting up in the precinct. At the moment first phase of Dube TradeZone is fully let; the second phase is expected to come online in 2015, but here to interest is peaking.