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FOCUS as a central storage facility that can be redistributed to its destination via rail. The immediate plan is to develop SMME enterprises that will benefit from the hub’s key facilities such as the storage, foodprocessing plant and a multi-purpose container depot. Local SMMEs will participate in an enterprise development and incubation programme that will prepare them to play an integral part in providing core services.



Iron ore

50 to 60mtpa predominantly for the export market


18mtpa for the local and export markets

Auto manufacturers

15 000 units per annum


2mtpa (exports and local markets)

School nutrition

45 000 tons (provincial market)

Potential impact

Upington Cargo Hub

Tonnages to be confirmed and to serve the export market

The project has the potential to add R1.7-billion to local economic development in the Pixley ka Seme District and to create 2 475 temporary and full-time jobs.

Namibian trade

Tonnages to be confirmed

Transnet Strategic Material Supply Hub

Tonnages to be confirmed for provincial market only

the car parking terminal, container terminal and the cold-room warehouse. Development of the project is estimated at 24 months. The proposed funding structure entails a cash equity injection of 15% and the balance being funded through senior and subordinated loans.

Project structure The Northern Cape Department of Transport, Safety and Liaison appointed a team of specialist advisors to embark on Transactional Advisory (TA) Services, spearheaded by the TM/Nelutha Consulting Joint Venture to determine project feasibility and to develop the De Aar Logistics Hub business case. This project will be structured as a Public Private Partnership (PPP) and by using the PPP model in terms of Treasury Regulation 16 issued to the Public Finance Management Act (PFMA) No 1 of 1999.

Potential commodity mix The Northern Cape has many commodities that can be traded and transported via the De Aar Logistics Hub which could serve as a catalyst for local and regional economic development (see table above).


Contact details: Northern Cape Department of Transport, Safety and Liaison Tel: +27 53 839 1743 Email: mdichaba@ncpg.gov.za ■

Total development costs are estimated at around R780-million, excluding borrowing costs during construction. This will be expended in building Company

Work description

2020 2020 2020 2020 2021 2021 2021 2021 Q-1 Q-2 Q-3 Q-4 Q-1 Q-2 Q-3 Q-4

DTSL/TM-NELUTHA Conclusion of land acquisition process TM-NELUTHA

Commencement with the scoping study and engage-

ment with the authorities for environmental process

Environmental Impact Assessment Study

Establishment of the project management office (PMO)

Setting up of ICT infrastructure and project data bank

Updating of Feasibility Study Reports

Revision of Commodity Demand Mix Studies

Updating of Financial Model FASKEN

Legal Services/Revision of Commodity Demand Mix Studies



Profile for Global Africa Network Media

Northern Cape Business 2020-21  

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