Richards Bay Industrial Development Zone
Richards Bay Industrial Development Zone

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RBIDZ Launches Stage 2


The Richards Bay Industrial Development Zone marked another milestone on 25 September 2012, when it handed over the site of Phase 1A to Devtech Civils CC, for the start of operations on Stage 2 of the bulk earthworks for Phase 1A, a site area of approximately 95 hectares in total, in preparation for their potential investors to eventually be able to locate onto this piece of IDZ land.

The project “IDZ Phase 1A - Stage 2” entails in brief the construction of an earthworks platform, approximately 879 000m³ of fill material, to be constructed on a portion of the IDZ Phase 1A site (46 Ha), in preparation for future development and installation of engineering services. The works will comprise the clearing and grubbing of the area in preparation of the engineered fill platform to be constructed through the importation of fill and or borrow material from off-site sources. The works will further consist of top soiling and grassing of the platform area. The anticipated contract period for stage 2 is 24 months.

The entire phase 1A has to be filled to a crest level of approximately 6,0m above mean sea level, which has had a significant cost and time implications to the Richards Bay Industrial Development Zone for the development of this Phase. Bulk earthworks fill has to take place before any engineering services such as roads, water sewer and storm water services can be installed on site. Material will be sourced from the UCOSP Co-Operative quarry.

In order to develop Phase 1A mitigation measures had to be undertaken to mitigate hydrological constraints by including wetland offset areas and bulk earthworks fill to compensate for high water tables and impacts of the 1:100 year flood line on Phase 1A.

The IDZ programme, which is a National Government initiative, of which the Richards Bay Industrial Development Zone (RBIDZ) forms a part of, is intended to promote local beneficiation of products prior to export, thereby creating jobs and improving South Africa’s balance of trade.

Although a state owned institution, the RBIDZ, like other developers is also obliged to pay substantial electrical and civil contributions to the local authority for the provision of bulk services. The RBIDZ has already paid R74,6 million to the City of uMhlathuze for bulk services for Phase 1A alone, which will be used to enhance the bulk networks of the City to accommodate the RBIDZ and its potential investors.

For each potential investor that applies to the RBIDZ to setup a factory, numerous legal requirements need to be met including the necessary environmental processes, before any construction can commence. An average EIA takes approximately 18 months to complete.

The Richards Bay Industrial Development Zone had to purchase its land for Phase 1A and Phase 1F (216 hectares in total) from the City of uMhlathuze at a cost of R124 million, the balance of which will be paid on transfer of the land.

To date, the RBIDZ has already created 250 construction jobs developing land adjacent to the Port, in its Phase 1A, stage 1 construction.

A requirement of the stage 2 bulk earthworks contract is that the contractor has to meet minimum contract participation goals which includes 40 % local labour targets and a minimum of 40% emerging enterprises be involved in the contract.

The RBIDZ in its last financial year has spent 12 % of Total Measured Procurement Spend on Qualifying small enterprises (QSE’s) and Exempted Micro Enterprises (EME’s), which is contributing significantly to the support of local SMME’s.

Another significant milestone achieved earlier this year, is that the Richards Bay Industrial Development Zone obtained an unqualified audit in 2010/11 and for 2011/12 has received a totally clean audit from its external auditors without any matters of emphasis. The only provincial entity out of eleven Public Entities that report to the Provincial Department of Economic Development and Tourism to have received this significant achievement.

Further, the RBIDZ has commissioned a 50 year master plan to determine how it will be best able to meet the needs of all stakeholders, including investors and the local community, over the next 50 years. This master plan is set to be a national case study as it will be used by several new SEZs for benchmarking purposes.

CEO Mr Ike Nxedlana has made the commitment that “The Richards Bay Industrial Development Zone is committed to ensuring that they play their role in helping to achieve Government’s objectives of creating jobs and investments for our area and believes that that they have already contributed significantly to the support of local SMME’s, as well as financially and socially contributing towards the socio economics of our region”.

RBIDZ Launches Stage 2

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