Hamish Erskine - Successfully attracting private sector investment
Hamish Erskine - Successfully attracting private sector investment



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Hamish Erskine - Successfully attracting private sector investment

2016-06-21

Dube TradePort has really come into its own in the last three years, burgeoning into a strategic investment destination for South Africa, and proving that speed, agility, and connectivity have become critical factors in creating a highly competitive businesses environment.

Dube TradePort's offering of prime commercial and industrial real estate, adjacent to King Shaka International Airport, has rapidly taken off, and the property market has been quick to respond.

Mr Hamish Erskine, Acting CEO of the Dube TradePort Corporation, said, "We have successfully secured private sector investment within the first phases of our Dube City and Dube TradeZone developments, which have attracted a good combination of both local and international investors. A few examples are Eureka Capital, who are building an office and innovation center in Dube City and in Dube TradeZone;Samsung Electronics SA, who have set up a monitor and television manufacturing facility; Amsted Reelin, who are refurbishing train bearings; Yangtze Optics Africa, a fibre optic cable and accessory manufacturer; and the South African brand Retractaline, who manufacture laundry products and accessories. This mix of international and local companies is particularly pleasing to see, as this location strategically positions them to accelerate their growth in the future."

For these investors, it's all about having seamless access to local, regional and international markets. The combined rail, road, sea, and air connectivity available from Dube TradePort allows manufacturers and distributors to deliver their products efficiently and timeously to market. Dube TradeZone is a logical choice for the strategic African manufacturing hubs of international companies like Samsung Electronics SA and Yangtze Optics Africa, considering the opportunities this location provides when supplying various markets on the continent and beyond.

Accessibility is a key part of meeting investors' expectations, requiring a location that allows products and services to reach global markets easily. Since 2010, the number of international airlines flying directly to King Shaka International Airport has grown, improving Durban's connectivity. Initially, Emirates Airlines unlocked a large number of new routes through its hub in Dubai. Then, in late 2015, Turkish Airlines, Ethiopian Airlines, and Qatar Airways connected Durban to a global network reaching over 700 destinations through hubs in Istanbul, Addis Ababa, and Doha respectively.

"We have seen an increase in activity from local manufacturing companies choosing to have their products moved directly to and from Durban, especially given the cost and time saved in the services offered by Dube Cargo Terminal. An added benefit is the additional capacity provided by the new airlines flying directly to Durban, which have been well received by the freight forwarding community. This has contributed to a 12% year-on-year growth in cargo volumes," said Erskine.

In terms of new airline route development, Dube TradePort - along with the government of KwaZulu-Natal (specifically the Department of Economic Development, Tourism and Environmental Affairs) and key role-players such as Tourism KZN, Trade and Investment KZN, eThekwini Municipality, ACSA/King Shaka International Airport and others - has set up a Routes Development Committee, which works to implement programmes geared towards attracting new international airlines to Durban, adding to the appeal of the destination for investors.

Another aspect that appeals to investors is the Special Economic Zone (SEZ) designation granted to Dube TradePort's TradeZone and AgriZone. This status enhances Dube TradePort's position as a specialist freightorientated export environment and multi-modal logistics platform catering to activities that require rapid access to air cargo services. The added benefits offered to investors who are operating within Dube TradePort's SEZ and whose activities align with the goals of the SEZ include customs and fiscal incentives, to promote business growth, revenue generation, and the export of value-added commodities.

In addition to this, Dube TradePort has put in place a network of strategic cooperative partnerships, with national, provincial and local government authorities working together to provide a "soft landing" for investors. Among these strategic partners is Durban Investment Promotion, which has played a pivotal role in investor relations.  Investments by the likes of Samsung and Yangtze Optics Africa have been a success thanks to these partners. These strategic partnerships also form the basis of Dube TradePort's plans to create an interim One Stop Shop service centre, which will aid both local and international investors, removing red tape and assisting them in navigating South Africa's business regulations.

The combination of a strategically positioned location with seamless access to both local and international markets, air connectivity, and a customs controlled area (that makes provision for companies driving the reindustrialisation movement within South Africa), is a winning formula for this strategic investment destination.




Hamish Erskine - Successfully attracting private sector investment

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