PRESENTATION “ INVEST IN THE HEART OF SOUTH … Free State Tlhomela… · PRESENTATION “ INVEST IN THE HEART OF ... Item Project Project Description Project Rationale & Benefits

BY

MR. FRANK TLHOMELANG

GENERAL MANAGER- INVESTMENT

FACILITATION

FREE STATE DEVELOPMENT CORPORATION

PRESENTATION

“ INVEST IN THE HEART OF

SOUTH AFRICA”

PRESENTATION

INVESTMENT PRESENTATION

PRESENTATION STRUCTURE

1. Free State Fact Sheet & Regional Economic Profile

2. N8 Corridor Projects

3. Other Projects

4. Tshiame IDZ Projects

5. Some existing images of N8 Corridor & Eastern Free State

Thank You

1. FREE STATE FACT SHEET & REGIONAL

ECONOMIC PROFILR

Political

Leadership

Premier: Mr. Ace Magashule

Location The most centrally located province in South Africa, bordering six

other provinces( Gauteng, Mpumalanga, Kwa-Zulu Natal, Eastern

Cape , Northern Cape, North West & the Kingdom of Lesotho)

Total Area 361 380 sq km

Municipalities 24 (1 x Metro , 4 District & 19 Local Municipalities)

Natural

Resources

Gold, coal, diamonds, clay, limestone, salt, gypsum, granite,

sandstone, titanium and uranium

Population (m) 2,745, 590 (2011 Census)

GDP 162 601 Billion ZAR (2012- Stats')

FS GDP

Percentage

Contribution

5,2% ( 2012)

GDP per capita R 51,480 ( 2012)

FREE STATE FACT SHEET

SOUTH AFRICA – FACT SHEET - MAPS

FR

EE

STA

TE

-

MA

PS

4 September 2013 5

Population (Census 2011): 633, 150

GDPR : 17%Sectors:

• Mining (primarily gold – Declining)

• Agriculture (primarily maize and

Sunflower)


GDPR : 3% (2012)Sectors:

• Mining (diamond),

• Eco-Tourism ( Xhariep Dam),

• Agriculture

• Renewable Energy (Xhariep Solar

Hub

Population (Census 2011): 754 363


• Wholesale retail & trade

• Agriculture

• Finance

• Hospitality, Real Estate & business

services

• Transport & communication

• Community & social services (Public

Sector)



• Mining (sandstone)

• Agriculture (Fruit & Flowers)

• Eco-Tourism (Drakensburg, Maluti

Mountains & Golden Gates – Eco-

Tourism Hub)

Population (Census 2011): 491,304

GDPR 35% (2012)

Sectors:

• Manufacturing (Petro-Chemicals –

Sasol Chemicals)

• Agriculture

• Mining

• Tourism & Real Estate

FS

RE

GIO

NA

L P

RO

FIL

E

FS REGIONAL PROFILE

0% 5% 10% 15% 20% 25% 30% 35%

Limpopo

Western Cape

Eastern Cape

Free State

KwaZulu Natal

North West

Gauteng

Mpumalanga

Northern Cape 2.2%

7%

34.7%

6.4%

15.8%

5.2%

7.5%

14%

7.1%

FS CONTRIBUTION TO SA ECONOMY 2012

Source : Stats-SA 2012

Ag

ric

ult

ure

, 4

.6

Mining, 13.

Manufacturing, 7.9

Electricity & Water,3.1

Construction, 1.9

Wholesale & Retail Trade, 13.2

Transport & Communication,

6.9

Finance & Business

Services, 14.5

Personal & General

Government Services, 24,5

Taxes 10.3

SECTORAL CONTRIBUTION FS

ECONOMY -2012- Source: Stats-SA.

2. N8 CORRIDOR PROJECTS

N8 CORRIDOR DEVELOPMENT PROJECTS

MANGAUNG BIO-MEDICAL PARK

• World class bio-medical facility

designed

� host research laboratories,

� export orientated

pharmaceutical

companies,

� bio-technology

� medical research companies

producing pharmaceuticals

products, services and technologies

N8 Corridor in Mangaung, Bloemfontein

Producing a new

generation of

innovators in

healthcare

UFS

Developmen

t of new

patented

medical

solutions

and

technology

MBP

Incubation

and

commerci

alisation

and

facilitate

technolog

y transfer

UFS Main Entrance Mangaung Bio-Medical Park Model

Item Project Project Description Project Rationale & Benefits Project Status

2. The N8 Corridor Development

2.1. Mangaung Bio-

Medical Park

A world class bio-medical facility

designed to host research laboratories,

export orientated pharmaceutical

companies, bio-technology and medical

research companies and competitive

pharmaceuticals products, services and

technologies.

• Incubation of new

biotechnology and

pharmaceutical companies

• Commercialise patented

products which are outputs

of university research

• Incubation of new

biotechnology and

pharmaceutical companies

• Commercialise patented

products which are outputs

of university research

2.2. Transnet Rail

Engineering Area

Warehousing, Logistics and Cold

Storage Precinct

• Bidvest has already open a world

class food processing facility

• A number of projects are in

the pipeline

• Position Free State

as a centre of gravity

in logistics terms

2.3. Race Course Area Mixed use development

� Retail Complex

� Office Park

� Residential Apartments

• Sites are currently been

sold,

• Construction and

development

• Expansion of the City

towards the East.

FS Trade & Investments Projects

3. OTHER PROJECTS


3. Other Projects

3.7. Rustfontein Dam • Eco tourism developments,

• Upgrading and widening of access roads

• Conference facilities, restaurants and

chalets,

• Boat and water equipment storage facilities

• Upgrade and improve tourism

support infrastructure

• Planning and

Development

4. Mabele bio-fuels • The development of of a 158 million

litres plant to produce bio-ethanol from

sorghum in Bothaville

• Is a Green source of fuel

that will be blended with

petrol and diesel in terms

of Bio-fuels mandatory

regulations that will be

implemented from the 1st

of October 2015

• Advanced

Planning and

preparation

5. Kraft Paper Mill • To establish a world class R650m Kraft

paper manufacturing facility in Frankfort

and a packaging raw materials facility in

Frankfort.

• The establishment of a central

collection centre in and around

Frankfort

• using imported virgin raw

material and locally

recycled waste paper,

• Off take agreements from

Sunny Packs and Chen

Pacs

•Advanced

Planning and

preparation

6. Xhariep Solar Hub • Establish a 50MW solar farm in Bethulie (

Kopanong Municipality)

•Harness solar energy, and empower

local community members through

skills dev.

• Negotiating PPA

and funding closure


4. TSHIAME IDZ PROJECTS

TSHIAME INDUSTRIAL DEVELOPMENT ZONE

LOCATION

Fresh Produce Packaging &

Distribution Hub

Food Processing

Park

Potato Crisp Plant

Cereals Extrusion

Plant

Maize Grits Extrusion

Plant

Tshiame IDZ

SIP 2 : Durban-FS- Gauteng –Industrial & Logistics Corridor

Tshiame IDZ(TIDZ) is centrally located

between Durban and Johannesburg (N3-5)

)Durban-Free State Gauteng Industrial &

Logistics Corridor

Harrismith

Gateway

Development

Tshiame

Development

The positioning

of the Tshiame

Development

must be

understood in

relation to the

Harrismith

Gateway and the

broader MAP

Area

N5

To Bloemfontein

(Mangaung)

N3 to

Johannesburg

(Gauteng)

N3 to

Durban

(KZN)

The broader

MAP Area

Tshiame Industrial Development Zone

Tshiame IDZ Master Plan

TSHIAME IDZ PROGRAMME

� IDZ focusing on food processing, container

terminal, vehicle distribution centre and parts and

accessories manufacturing,

� It will be 2nd IDZ of the first IDZ’s to be

proclaimed under the new SEZ Act,

� It will be a one stop shop for a fast-tracked support

to investors with targeted incentives

� Targeting an investment pipeline with R 4 billion by

2020,

� 700 hectares for Green and Brownfield's

development

� Custom Control Area (CCA) means no VAT or duties

on goods landed in the zone

� Speed and efficiency are key considerations,

� Discussing on-going with potential tenants and a

first major tenant may be signed soon,

� An industrial zone will be established outside the

IDZ Zone, in close proximity for companies

supplying enterprises in the IDZ Zone,

� Skills database is been developed for Free State for

ease of recruitment,

Section #1:

Industrial: Mainly

Automotive and

Rail-Based Container

Terminal

Developments

Section #3: Light-

Industrial Developments

and other precincts

Section #2: Agro-processing

Developments

Three Gatehouses

Perimete

r Fence

#1

Perimete

r Fence

#2Perimete

r Fence

#3

TSHIAME INDUSTRIAL DEVELOPMENT ZONE

THREE SECTIONS – TIDZ DEVELOPMENT

• The benchmarked Brazilian Hub

INTERMODAL TERMINAL CONCEPT DESIGN

BRAZILIAN HUB BENCHMARK FOR TSHIAME IDZ


INTERMODAL TERMINAL CONCEPT DESIGN INTERMODAL TERMINAL CONCEPT DESIGN




3. Maluti-A-Phofung Special Economic Zone

3.1. Proposed Maluli-A-

Phofung (MaP)

SEZ

To establish a special economic zone

focusing on food-processing, container

terminal, vehicle distribution centre and

parts and accessories manufacturing

• To unlock industrial and

logistics support to link the

SEZ with feedstock supply

areas in the region

• Planning and development

phase,

• Presentation made to

Manufacturing Development

Board on the 26/03/2014

• Preparation for Gazetting of

MaP SEZ

3.2. Food Processing

Park Cluster (MAP

SEZ)

To establish a food processing cluster

and attract private food processors to

locate in the park.

• a potato processing plant,

• cereals extrusion plant,

• soya meal extrusion plant,

• maize grits production plant, and

• fresh produce hub

• beneficiation of targeted

agricultural commodities

produced in FS

• develop agro-processing

logistics to ensure that

product quality is

maintained from farm to

processors

• feasibility studies and

business plan developed.

• Project promotion

3.3. Fresh Produce Hub To establish 20 000 tons handling

capacity fresh produce distribution and

packaging centre to supply companies

located in the food processing park.

The fresh produce

hub will responsible

for collection,

storage, grading,

processing and packaging

potatoes and other targeted

agricultural commodities.

• feasibility studies and

business plan developed.



3.4. Potato Crisp

Manufacturing

To establish a potato crisp

processing plant with a 180 tons

processing capacity and a finished

potato chips production capacity of

300 kg per hour.

• beneficiation of potatoes and targeted

agricultural commodities produced in

FS

• feasibility studies and business

plan developed.


3.5 Cereals Extrusion

Plant

To recruit a private investor to

produce a good quality breakfast

cereal.

• Production of ready-to-eat

affordable, multi-purpose, extrusion-

cooked, cereal-based food containing

locally available cereals that is

protein-fortified with legumes

• feasibility studies and business

plan developed.


3.6. Maize Grits Extrusion

Plant

To secure a private investor is

required to set up a grits production

facility at MaP SEZ to supply the

snacks and cereals market in Sub-

Saharan Africa.

• beneficiation of targeted agricultural

commodities produced in FS

• The maize grits feasibility studies

and business plan developed.


3.7. Distribution Cluster To establish a general distribution

centre with a bonded warehouse to

handle goods and commodities that

are exported and imported.

• Harvest 30% of bulk from the N3,

Free State and increase bulk

handling capacity in MaP SEZ from

51000 to 250 000 TUE’s to make a

Distribution Centre viable.

• Move bulk from rail to road in line

with national freight strategy

• Distribution centre conceptual

designs and business plan

designs completed,

• Negotiations with targeted

distribution

companies to

locate in the DC

are ongoing


Item Project Project Description Project Rationale & Benefits Project Status Requirement

3.8. Vehicle

Distribution

Centre and

Parts &

Accessories

Centre

The development of a

Vehicle Distribution

Centre (VDC) and Parts

& Accessories Centre in

MaP SEZ with a bonded

warehouse.

• The VDC will be storage and

handling facility with a

capacity of 1000 bays for

newly imported and exported

vehicles until they are

ordered by dealerships.

• Handle distribution of non-

branded parts motor vehicle

parts and supply the retail

automotive replacement

parts market.

• VDC Concept designs completed,

• Negotiations with targeted

operators are ongoing,

• Expression of interests have been

received some industry players,

• Seek investors and

technology

partners

3.8. Retail

Distribution

Centre

To establish an FDC

Trade stream operated

pilot for the retail

industry, as well as the

potential DC clients

such as Edcon Group

(including Companies

like Boardman’s, CNA,

Edgars, Jet, Jet Mart

and Legit),

• Move cargo from road to rail

and where not possible has a

rail road combination

• Improve efficiencies for

participating retailers by

holding back stock and

release it when required,

• Shore to store operating concept

developed,

• Pilot commitment had been

secured from Edcon group

• Agreements are been negotiated

with design houses for CMT

sourcing of materials.

• Seek technology

partners

3.9. Map SEZ

Intermodal

facility and

additional

railway.

The design and

construction of

additional railway siding

and an intermodal

facility. (Railway Freight

Logistics development

in support of MaP

Development).

• Logistics support for the

MAP-SEZ,

• Linking MaP SEZ with the

rest of the province, and SIP

2 corridor

• Conceptual designs finalised,

• The project is in FEL 2&3 with

Transnet Freight Rail

• TOR on railway expansion and

intermodal facility FEL process

signed

• This opportunities

can be realised

through Transnet

Freight Rail

procurement

through a PSP (

Private Sector

Party) programme


5. SOME IMAGES OF N8 CORRIDOR;

GOLDEN GATE

&

BASOTHO CULTURAL VILLAGE


N8 CORRIDOR

Airport Node

� 700 hectares of land for mixed use

development( warehouses and storage

facilities, SCM, new Hotels, conference

facilities, guest houses and Office complex

Bloem Industria

� Warehouses

� Truck stop

� Agric Service Centre

Bloemfontein International Airport

Mimosa MallLoc Logan Mall in BFN Premier Shopping Malls


N8 CORRIDOR –NAVAL HILL

Giant Madiba Statue

� Ovelooking the City of Roses, 2nd largest in

the World

The Digital Planetarium

� City of Roses is an Astronomical Heartland

of South Africa

Franklin Game reserve

� The only game reserve in the heart of the

city in the world. S

Giant Madiba Statute

Franklin Game ReserveGiant Madiba Stature Naval Hill Digital Planetarium

Franklin Game Reserve

THE BEAUTY OF EASTERN FREE STATE

Golden Gate Hotel

Golden Gate Fresh Water Beach Image at Golden gate

Golden Gate Popular Land Mark

THE BEAUTY OF EASTERN FREE STATE

Basotho Cultural Village – Golden Gate

Basotho Cultural Village – Golden Gate

THANK YOU

DISCUSSIONS AND THE WAY FORWARD

MR. FRANK TLHOMELANG

GENERAL MANAGER – INVESTMENT FACILITATION

FREE STATE DEVELOPMENT CORPORATION

TEL: 051-4000-849

Cell: 071 674 5730

[email protected] or [email protected]

Documents

PRESENTATION “ INVEST IN THE HEART OF SOUTH … Free State Tlhomela… · PRESENTATION “ INVEST IN THE HEART OF ... Item Project Project Description Project Rationale & Benefits