DEVELOPMENT MOMENTUM BUILDS AT BRIDGE CITY

KWAZULU-NATAL TO GET ANOTHER RETAIL, LOGISTICS PARK

A multimillion-rand logistics and retail park being developed by M&F Giuricich Developments and Fortress Property Fund, in KwaZulu-Natal, will be built this year.

The logistics park, located between the King Shaka International Airport and Durban, will form part of the N2 Business Estate, located on the northern edge of the Cornubia development.

Once completed, the total estate could create 2 400 permanent jobs and generate R45-million a year in rates income for the city.

“A logistics park of this size and nature is a perfect fit for the vision that we had of establishing the Cornubia N2 Business Estate as a prime commercial location,” said Tongaat Hulett Developments director Karen Petersen, noting that it met the criteria needed to attract tenants with specific needs, adding considerably to establishing the business estate as a prime commercial site.

M&F Giuricich Developments cofounder Florian Giuricich noted that, of the 200 000 m2 of space available, half would be allocated for logistics warehousing facilities and the remainder for retail.

“We believe the opportunity exists for this facility to meet the needs of logistics companies or major brands with significant warehousing needs. There is very little infrastructure of this nature in existence along the N2 that exploits proximity to the airport and Dube TradePort, as well as access to Durban, so we are expecting ready interest in these facilities,” he said.

Further, Giuricich pointed out that the retail component of the development would be equally attractive given the visibility from the highway, noting that there was considerable interest from large retail destination-based tenants who enjoy the prominent exposure and easy access to site from the N2 motorway.

This included some international retail tenants that are entering the South African market. Access provided by the flyover bridge network that links to the Umhlanga town centre and the amenities being developed within Cornubia itself add to the site’s retail suitability.

Giuricich noted the logistics park would be suitable for companies with larger logistics and distribution needs as the warehousing facilities will start at 10 000 m2 each. The developer would consider accommodating one major tenant with the requirement for premises larger than this minimum size. The platform design caters for this flexibility

Construction is expected to be completed in 2018.

End.Source: http://www.engineeringnews.co.za/article/kwazulu-natal-to-get-another-retail-logistics-park-2017-01-10

A LOOK AT DURBAN’S R1.8 BILLION CORNUBIA SHOPPING MALL

Cornubia Shopping Mall, a new retail development located in the north coastal corridor of Durban, is on track to open its doors in September next year.

The R1.8 billion mall is one of Investec Property latest development, rising from the old cane fields alongside the M41 at Flanders Road.

With one eye on the staff in the Cornubia Town Centre and another on the neighbouring residential areas – Mount Edgecombe to the south west, Phoenix to the west and the Cornubia residential precinct to the north – the Cornubia Shopping Mall first phase of 65,999m2 is set to provide a retail solution for all needs.

Although mixed use, the major portion of the Cornubia development will be residential, with 25,000 housing units being developed. Cornubia is a national pilot project of the Breaking New Ground policy launched in 2008.

Construction began in March 2016 and the mall is roughly half the size of the Gateway Theatre of Shopping, boasting two supermarkets and 1,630 on-grade parking bays and 1,608 basement.

The mall is located near the Umhlanga/Mount Edgecombe interchange and is adjacent to the Cornubia Town Centre.

“This forms part of a holistic spatial development,” explains Karen Petersen, Development Director of Tongaat Hulett Developments, which has made the land available for the project. “The shopping centre is one of the key amenities that will be provided to the 1,200 hectare mixed-use development which stretches from Umhlanga towards the King Shaka Airport.

Investec Property Joint Head Darryl Mayers says the centre is 80% let, with key national retailers as anchor tenants.

“We are delighted to be able to announce that the major food retailers Checkers, Pick ‘n Pay and Woolworths will have a presence in the centre as well as key clothing retailers, including Edgars and Truworths,” said Mayers.

Other tenants include Virgin Active Gym, Cycle Lab, Bounce, Nu Metro, Outdoor Warehouse, Dis-Chem, Clicks and Bakos Brothers.

“At the centre’s heart, there will be an open air ‘town square’, comprising al-fresco style restaurants, tapas bars, coffee houses and fast food outlets as well as double-level concept stores. In addition, the mall will offer a mix of fashion, lifestyle and sports outlets, all integrated into an outdoor, family-orientated shopping destination,” he said.

The on-going shopping mall developments and others that are still in the planning phase in South Africa, is increasingly driving concerns about an oversaturated retail property market despite consumer spending being in the doldrums.

The question, however, is whether SA can support another mall. Many consumers are cash strapped, and already SA has the sixth highest number of shopping centres in the world — almost 2,000 — and floor space covering 23m m².

“We do not see this as competing with Gateway,” adds Petersen. “We envisage the two centres being complementary to each other, creating a massive super-node between them. In the same way, we see the Umhlanga Town Centre and the Cornubia Town Centre as having a paired utility. Access between the two will be greatly enhanced by the bridge currently under construction over the N2 linking Cornubia Boulevard with Umhlanga Ridge Boulevard and forming part of the Go!Durban integrated rapid public transport network.”

The importance of Cornubia can be summed up in the words of Human Settlements Minister Lindiwe Sisulu when visiting Durban in 2015: “This project is very close to my heart, it demonstrates what we as a nation can achieve when we partner with business and investors.”

WORK IS UNDER WAY AT NEW SIBAYA PRECINCT ON KZN NORTH COAST

With the installation of services now under way at the Sibaya precinct, the time frame for the development at the new Signature Sibaya estate is on track.

Services are due to commence on schedule in the new year at this residential development next to Umdloti on the KwaZulu-Natal North Coast. The heightened levels of activity and hype surrounding this much anticipated node have resulted in over 85 percent sell-out, at a time when the property market as a whole has been far from buoyant.

A new, wide, landscaped boulevard with direct access to Signature Sibaya is in the process of being built off the existing traffic circle on the M4 into the Sibaya development, which will eventually link up with the M27 to the north. Construction vehicles are on-site daily, as demand continues to grow.

“Most of the plots at Signature were sold before the official launch, with vacant sites selling from R4.2 million to R10.5m”, says Carol Reynolds, Pam Golding Properties area manager for Durban Coastal.

“The new owners are expected to invest a further R10m to R20m in building their luxury dream homes.”

She says the north Durban coastline from Durban North to uMhlanga, Sibaya and Ballito, is one of the most sought after residential nodes in Work is under way at new Sibaya precinct on KZN North Coast KwaZulu-Natal.

“With the recent release of parcels of land in the eagerly anticipated Sibaya precinct, the area is buzzing with local and international investors seeking a piece of this acclaimed pie.

“The desirability of the area and the general trend towards secure living have made estates in this coastal node even more attractive. Developers have sought to meet this demand by offering a variety of security estates to cater for a range of budgets.”

Signature Sibaya consists of 45 sea-facing stands, ranging in size from 1 000m² to 2 000m². Two of the key drivers of Signature are the fact that it is pet friendly, and residents will have direct access to the beach along wooden walkways.

“The Sibaya Coastal Precinct will be developed in seven phases starting with nodes one and five, nestled between the M4 and the coastline and offering residential, leisure and limited retail to support local residents. According to the official record of decision, the mix of development rights for these nodes comprises over 2 300 residential units and over 100 000m² of commercial space together with hotel and resort uses.”

For details, call 031 561 5300 or email carol.reynoldsg pamgolding.co.za

ECONOMIC DEVELOPMENT AND JOB CREATION ON ITS WAY IN BRIDGE CITY

North of Durban, an entirely new town is currently under construction. Bridge City is going to be an “all-in-one”, Brian Ive, development executive at Tongaat Hulett Developments said.

The new town is the latest joint project of the eThekwini municipality and Tongaat Hulett Developments. Seventy percent of the mixed use residential, business and commercial site area has already been sold. “The site is very large,” Ive said, “so we only expect all the plots to be sold by 2019”. He added that current state of the economy has also slowed this process.

The Bridge City development aims to boost economic development and create hundreds more job opportunities. Some of the features that will service residents in the new town and surrounding areas will be:

• A government hospital
• A business park
• Small businesses factories and shops
• A petrol station

NJP Steel distribution centre that is expected to open early next year Shunnon Tulsiram, head of the municipality’s Economic Development and Investment Production Unit said businesses will be located in areas that will provide business opportunities. Small businesses that plan to open will vary from IT companies to manufacturing businesses and small start-ups.

Transport routes will be easily accessible from all areas of Bridge City. The new integrated system aims to link nine transport corridors across various modes of transport. The intermodal system is also expected to serve approximately 1 000 000 commuters per day once fully developed in 2027.

Currently, a “big pro” for people commuting into the area is the train that feeds into an underground station in the town’s local shopping centre.

The development is expected to uplift the surrounding areas of Kwamashu, Inanda and Ntuzuma that have been earmarked for economic development and job creation initiatives.

CORNUBIA ANALYSIS SHOWS CONSIDERABLE POSITIVE IMPACT

A recent analysis conducted by KPMG to determine the economic and financial viability of the Cornubia development north of Durban shows that it holds unquestionable benefit to the city, its people and the economy. 

The proposed mixed-use development has been earmarked as a strategic project that will have a significant impact on the social, economic and industrial prospects of the region. These prospects have now been quantified following the cost benefit and macroeconomic impact analysis conducted by the accounting and auditing firm. 

Appointed by the eThekwini Municipality, KPMG was tasked with determining if the project represents a sound investment or decision, as well as providing a basis for comparing projects on the basis of their costs relative to their benefits. 

The Cornubia analysis indicates an overwhelmingly positive outcome from the development for the eThekwini Municipality, local communities, and the regional and provincial economies. 

 “As important as the economic and financial considerations are, the Cornubia development is regarded as a catalytic intervention undertaken jointly by the eThekwini Municipality and Tongaat Hulett Developments to establish the first fully integrated human settlement in the country,” states Denny Thaver, Project Manager at eThekwini Municipality. 

The development has a large impact on job creation in eThekwini during both the construction and operational phases. In the long term, nearly 285 000 new employment opportunities will be created due to the commercial activities associated with Cornubia, representing a healthy 12% of total employment in the province. This will be achieved through 39 000 direct jobs, 144 000 indirect jobs, and an additional 45 000 jobs in the rest of the province, as well as 54 000 jobs resulting from the economic impact of salaries and wages paid to employees at the development. 

These jobs exclude the 250 000 employment opportunities expected to be created during the construction phase of Cornubia, representing 20% of the total employment in eThekwini (over a 20-year period). This phase of the project will pump as much as R700 million into lower income households through job creation opportunities, which nearly doubles to R1,3 billion in income for these households during the operational phase of the development. 

The construction phase alone will also contribute roughly R8,5 billion to the economy of eThekwini, representing 4% of the local economy’s GDP. Once operational, Cornubia will contribute approximately R3,3 billion directly to the local economy, with the provincial GDP being boosted by an estimated R1,2 billion. 

“Over the 20-year period the Cornubia project will not only change the economic landscape of the city, but will deliver significant socio-economic benefits to the region, province and national economy,” comments Karen Petersen, Development Director at Tongaat Hulett Developments. “The target, as set out in the National Development Plan is to increase South Africa’s economic growth to 5,4% on average in real terms by 2030. The total impact of the Cornubia development will contribute about 10% (i.e. R3,3 billion) to eThekwini’s GDP, and 5% to the provincial economy’s GDP of R22,9 billion (with Tongaat Hulett Developments creating the largest impact by contributing R9,4 billion to both the local and provincial economy’s GDPs). Nationally, the Cornubia development will contribute 2% (R50,4 billion) to the South African GDP.” 

The development will contribute to poverty alleviation through its impact on household income. The social accounting matrix indicated that through downstream generation of income, households in the eThekwini municipality will receive about R8,9billion, R1,4billion of which will be received by lower income households alone. 

The analysis by KPMG also shows that the eThekwini Municipality’s investment in this 1 200ha development is not only sound, but is a financially prudent initiative that will change the face of the region.

This conclusion is drawn from the cost-benefit analysis, which shows that the municipality alone stands to benefit to the tune of more than R4 billion as a result of the Cornubia development. The regional council’s internal rate of return – which measures the profitability of an investment – is 31% (three times the discount rate of 11%), which demonstrates the strong financial justification for undertaking the development. 

“Apart from the direct economic stimulus provided by the Cornubia development, the social impact from the construction of affordable, subsidised and public sector housing units will go a long way to improving the quality of living for local residents. Coupled with the job opportunities that are being created, the overall impact on the prospects and attractiveness of eThekwini will be significantly improved,” concludes Denny Thaver.

STRATEGIC PARTNERING AT TONGAAT HULETT STARCH

An upgrade to the existing Alidex plant at Tongaat Hulett Starch’s Germiston mill, costing some R130 million, has resulted in an increase of its enzyme glucose output to 300 tonnes from 130 tonnes per day. The expansion was driven by increased customer demand in the spray drying sector.

Stewart Krook, Marketing director at Tongaat Hulett Starch explains the reasoning behind the expansion of the Alidex plant, ‘We identified that we were short of capacity to supply product to our customers on time and in full.

The spray drying market was growing substantially faster than our current GDP. In order to meet the increased demand for final products, our customers had themselves invested to increase their output. With this growth in the local and export markets, which resulted in the need for more glucose, we found ourselves well short of capacity to supply everyone in the market.’

As a result, glucose had to be imported, which had a detrimental effect on all participants in the local value chain. To pursue the glucose market more aggressively, the company implemented two strategies. ‘We decided to increase the capacity on our acid glucose plant and also invested in an additional enzyme glucose production plant. This was the biggest single undertaking by Tongaat Hulett Starch since the commissioning of the Kliprivier Mill,’ Krook states.

The project resulted in additional downstream benefits. ‘We are proud that we are touching the lives of maize farmers as we are procuring more maize. Much needed foreign exchange is now staying in the country and allowing South African producers to pursue export programmes for local products. As additional product is put through the plant, production costs are optimised. Benefits in the downstream value chain, for instance transport and logistics operations, are also impacting on sustaining jobs.’

Extra capacity on enzyme glucose was also driven through standardisation by customers in the spray drying sector. The company invested some R130 million in the upgrade, on the back of a long-term supply agreement. This has additional benefits as Tongaat Hulett Starch’s acid glucose is now being freed up. Tongaat Hulett Starch can now offer all its customers in the spray drying and confectionary sectors the grade of glucose they want, to optimise their product and plant efficiencies. Different spray towers use different products and the ability to meet the entire spectrum of market requirements has been very beneficial to the company.

According to project engineer Shahir Jayram, the team had a firm understanding of the operation, technology, engineering and project management requirements of the project. ‘We are very proud that during the construction phase, the mill continued to seamlessly supply Alidex to customers without any interruption to the Germiston operation.’

Tongaat Hulett Starch engaged the services of an engineering, procurement and construction management service provider to assist with project implementation. This was a fast-tracked initiative and final costing and commissioning were completed within one year. Jayram is particularly proud that not one loss-of-time injury occurred during the construction and commissioning phases of the project.

Processing systems that work

There are two methods to produce glucose syrup: the enzyme/enzyme or acid/enzyme process. Equipment at the mill is in the process of being ramped up to its intended design rate of 300 tonnes per day.

‘We are in the process of optimising specific unit operations to yield improved plant efficiencies. We are not only doing things smarter, but also simpler,’ Jayram states.

During the acid enzyme converting phase, maize is changed from a solid to a liquid state. The first phase takes place in the cooker, where steam is used to provide the heat required for conversion. This takes place in the presence of an acid catalyst. Product then goes through a reactor under the correct pressure and temperature to ensure complete conversion. Thereafter the product reacts with an enzyme to produce maltodextrin. ‘The amount of enzyme (liquefaction) added, determines the level of sweetness required. We produce two grades, a 20 DE and 30 DE syrup. On the full sweetness scale, our product offers a mild and moderate sweetness, which is perfect for use in products such as coffee creamers.’

After liquefaction the product then moves to the filtration plant. Filtration removes fats and proteins to render a clearer product. The standard is that the glucose product must be totally transparent or water white.

‘The filter medium we use is diatomaceous earth. A check filter ensures that no filter medium advances through the process. Ion exchange is the next step where the glucose syrup is demineralised in line with international standards,’ Jayram explains. ‘Carbon treatment is then implemented to remove colour forming bodies and to improve the appearance and shelf life of the glucose. A consumer will not buy a product if there is any colour deviation and the coffee creamer market is particularly unforgiving.’

A two-stage evaporation process concentrates the product to specification. The new evaporator station was designed and built by the Tongaat Hulett Starch’s Technology Group. This group renders process, engineering and project management support to all of the Tongaat Hulett Starch operations.

Quality control remains an important differentiator at Tongaat Hulett Starch. In the factory, the operator does initial process sampling and samples are also sent to the central laboratory. If any deviations are found, the necessary corrective action is immediately taken. In the final product phase, repeat samples are tested in the mixing tank and a final check is run to determine whether pH, sugar profiles and conductivity meet all specifications.

A sophisticated air filtration (ultra violet light) system was installed onto the new Alidex storage tank. Disinfection with UV light kills any microbes to offset contamination in the storage tank. Tongaat Hulett Starch is so impressed with the new system that further roll-outs in other parts of the factory are expected during the year.

All about control

The company uses the Foxboro Intelligent Distributed Control system, which allows the operating team to dial straight into the plant control system. This helps the engineers in trouble-shooting and assists the operator to eradicate and resolve issues. It also enables root causes analysis off-site.

Tongaat Hulett Starch’s Germiston mill is set for further improvement this year. ‘We are planning a replacement of the starch wash battery. This will ensure that the plant is able to increase its throughput and overall efficiency,’ Krook concludes.

Source: Food Review – March 2016

CORNUBIA ACCESS INTO INDUSTRIAL AND BUSINESS ESTATE ENHANCED WITH OPENING OF JG CHAMPION DRIVE

Access into the Cornubia Industrial and Business Estate (CIBE) has been greatly improved with the opening of MR 458 road-over-rail bridge which leads motorists directly to the main entrance of the estate. 

Previously, access into the CIBE was via a single lane from the R102, which had to be upgraded to accommodate the increasing traffic volumes. To ensure smooth flow of traffic, this road will remain open, and be the primary access to eThekwini’s housing development, while the MR 458, or JG Champion Drive, entrance is now the main entrance into the estate.  

“The opening of JG Champion Drive will go a long way in easing traffic congestion by greatly increasing access to the ever-expanding CIBE,” explained Mtura Matshini, Development Executive of Tongaat Hulett Developments. “This long-awaited gateway to the CIBE comprises of two, dual lane road bridges. The location of the railway line, as well as wetland, necessitated the structures which presented an opportunity to construct aesthetically interesting feature bridges and entrance to the estate. 

With this in mind, Tongaat Hulett Developments assembled a professional team comprising of both a consulting engineer and urban design architect, with the view of developing a unique and aesthetically pleasing entrance to the estate. The main design theme encompasses 14 masts along the outside of each structure, leaning in both the transverse and longitudinal directions. Each mast is illuminated creating an impressive night-time effect, directing traffic towards the CIBE. 

The 88.50 m long structures comprise of four spans, integral at the abutments and intermediate piers. An expansion joint is placed over the central pier, allowing for movement of the bridge decks. The bridge decks are 10.4 m wide, carry two lanes of traffic and a sidewalk each, with a clear gap of 7,8 m separating the bridge decks. The structures are at a 5^o angle. The uniqueness of the structures is in the abutments leaning 

A unique aspect of the structures is that the abutments and intermediate piers lean towards the approaches, while the central pier is vertical. This layout is mirrored by the light masts. 

Each bridge deck comprises of six u-shaped, reinforced concrete, precast beams with lengths of approximately 21,0 m. A precast beam solution was necessary as the rail line that the structures span over needed to remain open with minimal disruptions during the construction period. This was achieved by lifting and placing the beams with cranes during temporary, short duration closures of the rail line. Diaphragms at each support create the monolithic structural system and a 200 mm thick cast in-situ deck slab, cast on permanent formwork, creates the riding surface of the bridges. 

The bridge abutments are buttressed walls, leaning back at a 1 in 4 slope. The abutments are integral with the bridge deck. The piers comprise of leaning columns with a capping beam. The intermediate piers are integral with the bridge deck, while elastomeric bearings at the central piers support the bridge deck. All substructure elements are supported on 1,05 m diameter piles, raked where required. 

The approaches to the structures are retained by mechanically stabilised earth walls. The southern approach passes through a wetland which required an unusual solution to stop the approach fill settling over the life of the structure. Stone columns where installed in this area to support the approach fill, with careful monitoring of the settlement taking place to ensure settlement limits were achieved, prior to finishing off the approaches. 

Construction of the MR 458 started in April 2014, with FCE (Fountain Civil Engineering) as the main contractor. The official opening of the route took place at the end of February 2016. The R140 million access route was co-funded by eThekwini Municipality (60%) and Tongaat Hulett Developments (40%). 

Access to the MR458 or JG Champion Drive is off the R102 and Northern Drive intersection near Phoenix and Ottawa. 

Currently several organisations are operating in the CIBE including Bidvest Food services, Digistics, ID Logistics, Blinds Mart, Cargo Compass, and MacNeil with other purchasers including listed property funds as well as other large companies like TechnoVaa South Africa having acquired land in the estate. The Estate, which permits light industrial and business uses, is almost sold out, except for 1 large site. 

INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2015

• Revenue of R7,609 billion (2014: R8,073 billion)  -5,7%
• Operating profit of R1,361 billion (2014: R1,510 billion)  -9,9%
• Operating cash flow of R2,292 billion (2014: R2,413 billion)  -5,0%
• Headline earnings of R673 million (2014: R773 million)  -12,9%
• Interim dividend of 170 cents per share (2014: 170 cents per share) 

BRIDGE CITY ATTRACTS ENTREPRENEURS