The South African Cabinet has ratified a decision by the Department of Trade and Industry (DTI) to designate the Maluti-A-Phofung (MAP) logistics hub, in Harrismith, in the Free State, an industrial development zone (IDZ), further approving the granting of operator permit for this zone to the Free State Development Corporation.
The designation would result in the establishment of a logistics-orientated platform 10 km outside of Harrismith, primarily to service the automotive, light manufacturing, agro-processing, distribution and logistics sectors.
The Harrismith hub had become part of a key nodal point of the Durban–Free State–Gauteng Corridor, which was identified in the 2005 National Freight Logistics Strategy approved by Cabinet. According to the DTI, the MAP IDZ would become a multi-sector processing, manufacturing, engineering, logistics services, transport and logistics complex, serving the needs of the upstream value-adding, beneficiation, processing and production service companies operating across sectors and geographical areas in Southern Africa.
The zone would further look to provide efficient IDZ and customs-controlled area operations and processes that would facilitate timeous and cost-effective operations for international and domestic investors.
Proposed Durban-Free State-Gauteng Logistics and Industrial Corridor Plan (SIP2)
Notwithstanding on-going discontent amongst industry operators in regard to proposed legislative measures mandating customs clearance at first port of entry, the South African government (GCIS) reports that work has already commenced on a massive logistics corridor stretching between Durban and the central provinces of the Free State and Gauteng. Most of the projects that form part of the second Strategic Infrastructure Project (SIP 2), also known as the Durban-Free State-Johannesburg Logistics and Industrial Corridor, are still in the concept or pre-feasibility stage, but construction has already started on several projects.
- the building of a R2,3 billion container terminal at City Deep
- a R3,9 billion project to upgrade Pier 2 at the Port of Durban
- R14,9 billion procurement of rolling stock for the rail line which will service the corridor.
Work has also started on the R250 million Harrismith logistics hub development to set up a fuel distribution depot, as well as on phase one of the new multi-product pipeline which will run between Johannesburg and Durban and transport petrol, diesel, jet fuel and gas.
The aim of these projects and others which form part of SIP 2, is to strengthen the logistics and transport corridor between South Africa’s main industrial hubs and to improve access to Durban’s export and import facilities. It is estimated that 135 000 jobs will be created in the construction of projects in the corridor. Once the projects are completed a further 85 000 jobs are expected to be created by those businesses that use the new facilities. Source: SA Government Information Service
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