Coega Development Corporation
Coega Development Corporation’s (CDC) initial mandate since its establishment in 1999,1999 was to offer a full range of services to investors interested in investing or locating to the Coega Industrial Development Zone (IDZ) or other parts of the Eastern Cape Province to position themselves for greater market penetration and profit gains. The Coega IDZ covering 110 km² of land , is situated in the Nelson Mandela Municipality, Eastern Cape province of South Africa in the Nelson Mandela Metropolitan Municipality (near Port Elizabeth).
The initiative is a multi-billion dollar industrial development complex customised for heavy, medium and light industries, adjacent to a deep water port.
It is a phased development around industry clusters with Custom Secure Areas dedicated for export oriented manufacturing for companies located in the zone. Coega offers a platform for global exports by attracting foreign and local investment in manufacturing industries for automobile, energy, agro processing, petro chemical, general manufacturing and business process outsourcing and off shoring. The Coega Development Corporation (CDC) is the developer and operator of the Coega IDZ and is responsible for the land-side infrastructure, while the deep-water port facility, Port of Ngqura, is developed by Transnet National Ports Authority.
Port of Ngqura
Situated along the South African Eastern Cape coast – and adjacent to the Coega IDZ – the Port of Ngqura is strategically positioned on the global east-west trading route.
With the depth of the channel and the protected position in Algoa Bay, the port is in one of the best spots for a harbour along the South African coast.
Completed in November 2009 it has a capacity for accommodating the new generation and bigger container vessels than any of South Africa’s seven other commercial ports. And with only an overnight train or truck trip, from the major inland manufacturing centres of Johannesburg, Cape Town and Durban, the port is ideally situated to meet the needs of all import and export markets.
As the newest deepwater port in the Southern hemisphere, the Port of Ngqura combines with the Coega IDZ to position itself as a world class infrastructure site – offering many added value benefits for investors.
The Port of Ngqura provides a vital conduit to international markets and is envisaged to ultimately make South Africa the hub of all north-south and south-south sea traffic.
Shifting Focus
A recent strategic review of CDC’s mandate resulted in a fundamental paradigm shift and re-framing of the organisation from an industrial development company, simply focusing on the IDZ, to a services group undertaking industrial development at the IDZ, the Nelson Mandela Bay Logistics Park (NMBLP) in neighbouring city, Uitenhage. The new framework also positioned the CDC to provide programme management services to all spheres of government, including management consulting services to the public sector, including public entities.
Impressive results have already yielded. The organisation is currently managing a R5.5 billion (US $728million) portfolio of physical infrastructure on behalf of the government; as well as a new successful partnership with the Volkswagon South Africa Group; including the organisation’s acquisition of four investors into the NMBLP.
The successful strategic shift was supported by a number of initiatives including developing a framework for scientific allocation of its key and scarce resources, especially its professional staff and budget allocations; and adopting a data and research based approach to decision making.
A five-year ‘Desired End State’ brought clarity to what the organisational goals should be and how they fit into the national landscape in pursuit of the government’s mandate of improving the quality of life for all South African citizens. A ‘Competitiveness Improvement Programme’ was adopted after benchmarking the CDC to similar organisations, locally and globally.
This programme will ensure the CDC improves its value proposition in the areas it has chosen to be active in and thus maximises the opportunities to achieve its desired end state. In achieving all these goals, the organisation has resolved to give particular focus to improved implementation of its performance management system, namely the Balance Score Card, as adopted for public sector circumstances.
The overall outcome of the CDC’s strategic review is the development and implementation of a holistic programme that has positioned them to minimise the adverse impact of the economic recession, while positioning to maximise once the global economy recovers.
Support Team
In order to facilitate investors’ acclimation to the area, CDC has created three unique units of support.
HCS
The fully-fledged Coega Human Capital Solution (HCS) business unit, established in 2006, focuses on all facets of strategic and operational human capital requirements in the Coega IDZ, Nelson Mandela Bay and the Eastern Cape Province. The core mandate of the business units is to provide highly developed human capital solutions that ensure the availability of a managed labour environment for investors and businesses in the region.
The services offered by the unit are underpinned by an advanced labour management information system and employment relations framework, specifically suited to support the management and development of mega projects. The functional areas of the units, which enables it to carry out its mandate are employee relations, recruitment and placement, training and human resources development, investment promotion support and business development.
CSS
The newly formed unit of Coega Strategic Solutions focuses on serving external public and private clients by aiming to improve their performance, primarily through the analysis of existing business problems and development of plans for improvement.
The CSS management consultancy unit is able to draw from a wide range of expertise and skills that exist within the CDC, starting from human resources management, operations and facilities management, training and development, research and development, enabling infrastructure planning and development and safety, health and environment, development of performance indicators and investment promotion.
CDC-S
Established in 2002 as a special purpose vehicle, Coega Development Corporation Services Unit provides assistance and project management skills for infrastructure development projects for the Eastern Cape provincial government and private sector. The CDC-S mainly focuses on fast-tracked projects, where expediency is required. To date the unit has created more than 3,000 jobs.
The involvement of the CDC in provincial projects forms part of the corporation’s objective to advance socio-economic development in the Eastern Cape. The involvement of the CDC-S in the development of critical infrastructure in the province assists in unlocking and realising sustained economic development.
By assisting in the development of basic infrastructure for the Eastern Cape, the CDC is ensuring that they are able to position the province as an attractive investment destination; and there is meaningful backward integration between the development of the Coega Industrial Development Zone with the Nelson Mandela Bay Municipality and also with the Eastern Cape Province as a whole.
Recent and Completed Projects at Coega IDZ
CDC Head Office
One of the most spectacular landmarks is the CDC’s Head Office. Completed by Grinaker-LTA in 2008, it was the first multi-storey office block built in the IDZ. Its striking, modern architecture stands out on the horizon as one enters Port Elizabeth. The building features aluminum cladding and glazed curtain walling on the facade of the foyer areas.
The interior finishes are of an extremely high standard and include modern floor finishes as well as specialised features such as motion detection lighting with self-dimming fluorescents to blend in with the natural lighting, and self-extinguishing lighting for unoccupied areas.
General Motors South Africa
Currently the largest warehouse in the Eastern Cape, General Motors South Africa (GMSA), constructed a R185million (US $24million) Parts Distribution Centre. This facility is used as a parts distribution centre for GMSA vehicles models to the after-sales spares market to all Sub-Saharan African countries.
The structure comprises a 36,300m2 warehouse and 1,300m2 office space on its 85ha site. The project includes the warehouse with 16 dock levellers, concrete pavement yard for truck deliveries and collection, gatehouse, parking areas, fencing, fire reservoirs with booster pumps, substation with generator room and waste storage area.
Cape Concentrate
This state-of-the-art tomato processing plant was recently completed. Once in full production capacity, it is expected to output high quality tomato paste (of 28-36 Brix) into 220-litre aseptic drums, with a daily capacity of 400 drums per day. The paste will be of global standards and will be used for both the local and export market.
BVi Consulting Engineers and Brinkman Ndayi McAll were responsible for the designs of all buildings and structures as well as the external facade, taking into account, internationally accepted best practice for Industrial Parks and Food Processing Plants.
The plant comprises a 1,800m2 warehouse with a 800m2 double-storey office block and 652m2 utility building attached. The project, completed in April 2010, also includes a boiler house with dedicated office building; coal delivery area; evaporator and cool plant area and condenser/chiller plant area.
Benteler
Set for completion in August 2010 is the German automotive component manufacturer—Benteler’s production facility. The 20,000m2 facility, built by NMC Construction, will supply local major car manufacturers in the Uitenhage area.
The 8.5m high, double-storey office block is set against the lower factory which has a ridge height of approximately 12m. The higher portion of the facility, housing a 40-ton gantry, is 18m at the ridge. Designed by Cape Town based PMAC, its contemporary appearance ties in with the guidelines set by the Nelson Mandela Bay Logistic Park.
The structure is predominantly composed of quality cream finishes and textures, incorporating the use of coloured chromodek sheeting and metal cladding, with visible structural steel elements and an external lighting design that enhances the aesthetic qualities of the building at night.
The landscaping design ties in with the natural environment and skilfully integrates the building with its surrounding landscape. It is set back from the street boundary creating a green buffer zone between the street paving and the building.
Business Process Outsourcing
Recognised as one of the flagship projects of the CDC, this new mixed use centre (located in Zone 4) consists of two main components, the Business Process Outsourcing (BPO) and Skills Development and Training Facility.
The high-profile project meets the fundamental requirements of the government’s initiatives of employment creation, which has local, provincial and national value. The centre was designed with flexibility in mind meeting local and international trends. It will ensure a high concentration of employment opportunities to service both industries and businesses worldwide.
The facility’s primary functions are housed on the 15,130m2 single-level footprint with ancillary classroom styled training rooms, auditorium and boardrooms; which are located on the mezzanine level (an additional 4,225m2). The centre also houses a new Data Centre for Zone 4’s telecommunications and data infrastructure.
CDC and SANRAL Partnership to Construct the N2 Coega River Bridge
Upgrading of the N2 through the IDZ commenced in 2002 with the construction of a systems interchange providing access to the new deep water Port and the core development area of the IDZ. Works in the following years entailed construction of dual carriageways from the St Georges Strand Markman Interchange to just west of the Coega River and from the IDZ most eastern boundary to just east of the Coega River.
The bridge and roadways over the Coega River valley, constructed through a Basil Read/Newport Joint Venture, is the last section of the upgrades to be completed. The structure comprises two identical three span bridges (total length of 125m). Each deck has three main beams that are post-tensioned and constructed with arched soffits.
To date both bridge structures have been completed with road works of the dual approach roads in full motion. The R206million (US $27million) project is due for completion and full operation by August 2010.
