22 Weslander Saldanha Bay IDZ ‘will create almost 6 000 jobs’
Sakenuus Business News
11 April, 2013
The Saldanha Bay IDZ could bring unprecedented wealth to the area, and prove economically beneficial to South Africa. Contrary to widespread belief, the proposed Saldanha Bay Industrial Development Zone (IDZ) will create almost 6 000 jobs in its first year, according to UCT Graduate School of Business (GSB) economist, Barry Standish. Standish revealed the findings of his team’s economic analysis of the Saldanha Bay IDZ business plan at a panel discussion held at the GSB on 13 March. According to Standish’s analysis of the business plan, the Saldanha Bay IDZ will have created 2 600 direct jobs by the end of its first year, and 14 702 total (direct and indirect) jobs will be created within 18 years of business. The results of the cost to benefit analysis for South Africa showed a total benefit with a predicted value of R42 807 700, versus only R4 503 300 in present value costs. “The real benefit comes from the benefit cost ratio – every R1 that society spends, will equate to R9,50 return,” said Standish. The proposed development originally met with criticism from academics and media as far back as 2010, who felt expectations given of the development were optimistic. Standish said that in conducting the analysis, his team made an effort to show the unfeasibility of the project, but were instead surprised at encountering the second highest cost-benefit to society in South Africa of any analysis his team had ever managed. Standish’s team then performed a more ex-
11 April Openbare vergadering by die Louwville-gemeenskapsaal, Vredenburg, oor die voorgestelde Parklands-nywerheidsontwikkeling op plaasgrond langs die Orex-pad, sowat 4 km suidoos van Vredenburg. Die vergadering en voorlegging sal om 18:00 begin. 25 April The St. Helena Bay Water Quality Forum Trust will meet at 09:00 at the Shelley Point Hotel. Nitasha Baijnath-Pillay, Deputy Director: Land-based
ernment’s Departtreme analysis, ment of Economic Deknown as a sensitivivelopment and Tourty analysis. “A sensiism said the biggest tivity analysis tightconcern in the develens assumptions opment of the Saldanmade in a basic cost ha Bay IDZ to date, benefit analysis – it and part of the reason pushes up costs such for the MBD’s initial as infrastructure setscepticism, was the up costs and private history of enterprise business set-up costs, and development in essentially looking at the area: “Many difa worst case scenarferent projects have io. After analysing been tried at the the business proposSaldanha Bay site beal with these extremes in place, the Servicing the oil and gas industry is a major fore, with little ‘trickle-down’ benefit and proposed project re- focus area of the proposed industrial deve sustained economic mained economical- lopment zone (IDZ) at Saldanha. development coming ly efficient. PHOTO: WESLANDER ARCHIVE from these; some of “The conclusion of our analysis was that the IDZ will create jobs, the projects have themselves proved profitahave significant economic impact, and prove ble, but with little benefit to wider society,” said Jonker. economically robust,” said Standish. Speaking at the panel discussion, Kaashifa The application for the IDZ was made by the Saldanha Bay Industrial Development Beukes of SBIDZ LiCo, said that “in compiling Zone Licensing Company (SBIDZ LiCo), a the business plan, SBIDZ LiCo looked at the wholly owned subsidiary of the Western Cape history of projects in the sector, and undertook various studies to determine the best Investment Promotion Agency (WESGRO). The purpose of the proposed IDZ is to en- project for the region in order to meet job creacourage the creation of an engineering and tion, economic development, and regional logistics services complex, serving the needs and local imperatives.” As a result of this, Beukes said that the IDZ of the upstream exploration and production service companies operating in oil and gas will primarily operate in three spheres: renewable energy production and manufacturfields in sub-Saharan Africa. Herman Jonker of the Western Cape Gov- ing; as an oil supply base; and in steel and min-
Sources of Marine Pollution will speak about the Integrated Coastal Management Act and the draft requirements and processes for the issuing of coastal waters discharge permits and the draft assessment criteria. There will also be feedback on the founding of the new Harbour Users Committee. 7 Mei Eusa Computer Accounting bied ’n BTW-seminaar aan om 09:00 op Vredenburg. Onderwerpe sluit in: Die verskil tussen 14%, nulkoers en vrygestelde BTW; dieselrabat; vereistes van elektroniese dokumentasie aan SARS, ens. Koste: R680 per persoon Aanbieder: Wayne Alexander (Professionele Rekenmeester SA).Navrae: 022 713 1622. Email key business events to redakteur@weslander.co.za.
eral manufacturing. SBIDZ LiCo submitted the business plan to the Manufacturing Development Board (MDB) in October 2012, and despite initial scepticism from the MDB, Beukes said that following a study of the business plan, the board showed enthusiastic support. On 2 February 2013, Trade and Industry Minister Rob Davies said: “Saldanha Bay has been recognised as an area with great economic potential both for the quality of its port facilities, and for the entrepreneurial quality of its residents. As such, it is strategically placed in the Presidential development node and thus the national, provincial and municipal authorities have explored ways of unlocking this potential. It is equally important that local industry participate and be involved in the economic upliftment of the area.” Beukes said that they have met with stakeholders in the local community to ensure full participation and approval “We met with each of the 13 different area wards to ensure that the different values and interests were taken into account,” she said. Oil and gas rigs operating off yhe shores of Namibia and Angola and as far north as Gabon on the west coast and in Mozambique and Tanzania on the east coast could be serviced in the proposed IDZ, which would exist alongside those at Coega and Richards Bay. If granted IDZ status, Saldanha Bay will join Coega, East London, Richards Bay and OR Tambo International Airport as existing IDZs. – Article by University of Cape Town’s Graduate School of Business
VPG-fasiliteit kry groen lig DIE aanlandige komponent van Sunrise Energy se vloeibare petroleumgas (VPG)-fasiliteit is goedgekeur. Die Wes-Kaapse departement omgewingsake en ontwikkeling het op 28 Maart goedkeuring geldig vir vyf jaar aan die projek toegestaan. Sou die projek om enige rede nie binne die vyf jaar van die grond af kom nie, verval die goedkeuring en sal daar heraansoek gedoen moet word. Die aanlandige komponent sluit in onder meer kantore, werkswinkels en stoorgeriewe, genoeg om 15 000 t VPG in die eerste fase van die projek in silindriese drukhouers te stoor. ’n Pypleiding van 2,56 km sal die gas van die hawe oor land na die stoorgeriewe vervoer. Sunrise Energy wag nog op omgewings-
goedkeuring vir die aflandige komponent van die projek wat ’n boei-vasmeringstelsel behels, met ’n ondersese pypleiding om die petroleumgas te vervoer. Tenkskepe sal dus tydelik aan die boei vasgemeer wees terwyl die gas afgelaai word. Die gas word daarna deur ’n onderwater-pypleiding na die aanlandige bergingsfasiliteit vervoer. Daar word verwag dat die VPG-fasiliteit genoeg gas vir die hele Wes-Kaap sal kan lewer vir die volgende 40 jaar. Dit sal in drie fases hanteer word. Teen 2035 sal ’n gastoevoer van 52 000 t maandeliks hanteer kan word. Daar word gehoop om vanjaar met konstruksie aan die VPG-bergingsfasiliteit te begin sodat dit teen einde 2014 in werking kan wees.