KwaZulu-Natal provincial government business entity and special economic zone (SEZ) operator Dube TradePort Corporation is advancing plans for TradeZone Phase 3, a major expansion aimed at meeting growing demand for light industrial space in the province.

The development is in the Advanced Town Planning, Spatial Planning and Land Use Management Act (SPLUMA) approval process and is set to aid the maturation of 56 ha of developable light industrial land.

“Targeted construction of enabling infrastructure is set to start in the next 12 to 18 months and is expected to take [about] 24 months, subject to final approvals and [the] continuation of the current strong market interest and pipeline,” Dube TradePort commercial property senior manager Andile Mnguni elaborates.

The expansion comes as manufacturers look for SEZ locations that can derisk operations and provide direct access to export markets.

Mnguni says the Dube TradePort SEZ model offers a competitive advantage that exceeds what is typically available in non-SEZ industrial parks: “The Dube TradePort SEZ offers manufacturing tenants a globally competitive operating environment.”

Key to this is its location and access to logistics operators and infrastructure, as the SEZ is positioned near King Shaka International Airport and the Dube Cargo Terminal, between the ports of Durban and Richards Bay.

This allows for efficient logistics and “seamless access” to global markets, says Mnguni. Moreover, investors benefit from streamlined regulatory processes facilitated through an on-site, dedicated one-stop-shop investor support centre.

Power, Water and Flood Mitigation

Energy security and climate resilience have become central to investment decisions, and Dube TradePort has embedded resilience across infrastructure since its inception, says Mnguni.

To manage grid instability, all Dube TradePort buildings are equipped with backup generators.

“From an energy perspective, Dube TradePort has taken a leading role in advancing renewable solutions. This includes the installation of one of the largest rooftop solar PV arrays in the region,” he says.

A new water reservoir is also planned, which is expected to “hold three days of supply to be a buffer for manufacturers within the zone in case of interruptions”.

Flood risk has also been addressed following the extreme weather in KwaZulu-Natal over the past five years by enhancing flood- resilient infrastructure and advanced stormwater management systems.

The SEZ has also assisted in the restoration of wetlands and the planting of native vegetation across a land mass of over 260 ha, which was recently tested by some of the most extreme flooding events in the region. The zone is unaffected.

Incentives and Sector-Focused Strategies

While fiscal incentives remain important, Mnguni says non-fiscal support is increasingly driving investment decisions.

“A key driver of new investment has been Dube TradePort’s sector-focused cluster strategy. By understanding the specific operational requirements of targeted industries, the organisation has been able to develop turnkey facilities and fully serviced land, [anticipating] market demand.

“This ahead-of-market approach has enabled Dube TradePort to secure investments by rapidly operationalising such requirements, an essential driver for market-seeking investors.”

The SEZ’s connectivity is another critical differentiator that further strengthens its appeal as an investment destination. Moreover, the organisation’s investor aftercare services and business-focused approach has and will continue to deliver positive results.

He also notes that corporate tax rates, value-added tax and customs relief have been material, particularly for export-oriented manufacturers, in securing investors.

Investments and Sourcing Locally

Dube TradePort provides developers with fully serviced sites with regulatory approvals and development-ready land.

“Dube TradePort facilitates development approvals at the municipality and uses the Design Review Panel to ensure that all submitted applications are approved swiftly. Further, investors are provided with approved bulk services drawings and necessary engineering reports to support their submissions,” Mnguni adds.

As part of the investment approval conditions, which are monitored, he says investors are obliged to submit their commitments to the use of local suppliers for components in their production processes, subject to availability.

Additionally, the local-content targets are also informed by sectoral localisation targets as determined by the Department of Trade, Industry and Competition. All the investors that constructed their facilities at Dube TradePort have used local contractors and labour, he confirms.

The SEZ also tracks the impact of construction and operations closely.

“Dube TradePort employs economic models that take into account various factors when determining the organisation’s socioeconomic impact . . . [and] has an obligation to report, quarterly, on these employment figures to the provincial and national governments.”

With Phase 3 infrastructure procurement expected to begin this year, the SEZ is positioning the expansion to absorb demand from manufacturers seeking resilience, connectivity and speed to market in a constrained industrial property market, he concludes.