IDZ – the ‘BS’ marketing approach continues

January 23, 2013 — Leave a comment
Saldanha Fabrication Centre, Port of Saldanha

Saldanha Fabrication Centre, Port of Saldanha

After all the negative criticism of the South African IDZ programme over the years, its remarkable that the latest offering situated at Saldanna Bay is plagued by the same misrepresentations as preceding zones. When will the IDZ Operators and their marketing/communication teams learn that the South African government does not provide ‘free ports’ within its IDZ programme. For that matter neither does the Special Economic Zone (SEZ) facility. Such statements are misleading and in effect only create confusion for investors.

Ports.co.za recently reported that, as a result of the sub-lessees failing to secure any business (lack of business benefits and government incentives?), the facility that was built as the Saldanha Fabrication Centre in 2007 is now to be converted into a multi-disciplinary facility to support the sectors of Oil & Gas; Petrochemicals; Renewable Energy Power; Desalination; Mineral Mining, Environmental & Chemical Industries.

This facility will be in the Customs Controlled Area (CCA) and will therefore enjoy ‘free-port’ status. The CCA will then be extended as the IDZ phases in the port’s hinterland come into being. Oh really?

KNM Grinaker-LTA will be retaining a certain area including the 25 metre high Bay 1 and Bay 2 workshops. This is intended to house equipment for the Oil & Gas majors which will require the height to be increased. Their work will be fabrication.

The facility has its own dedicated jetty, ideally for loading large diameter, heavy and long vessels, jackets and modules. KNM Grinaker-LTA Fabrication remains the sole local fabricator for the untapped market of pressure vessels above 100mm thicknesses.

The other areas, workshops, etc, are available for leasing on a long-term basis and the rental rates will be determined by the size of area required and the length of the lease. Saldanha Freight Services (SFS) are working with KNM Grinaker-LTA in searching for potential lessees. The screening of lessees will be intensive as the core activities must fit with the KNM Grinaker-LTA vision.

This facility is leased from and located in the Transnet National Port Authority (TNPA) zone designated primarily for the oil & gas sector. West of this facility (off-picture) is an area earmarked for a large graving dock, should such a dock be deemed sustainable in the long-term. East of the facility is open land also designated by TNPA for Oil & Gas developments.

This is the area where the Oil & Gas Base will be established. It will be linked to the shore-front with workshops and other facilities as well as deep-drafted quayside (berths) and lay-down areas suited to the maintenance & repair of vessels in the oil & gas industry.

The roads to the 4-berth multi-purpose terminal (MPT will be upgraded in the short-term to facilitate handing of imports & exports over this terminal. This land is available for leasing from TNPA and SFS is in a position to facilitate this for interested parties. These developments are planned for the 0-5 year and 6-10 year period commencing in 2013.

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