THE DUBE TRADEPORT’S TRADEZONE AND AGRIZONE HAS BEEN DECLARED A SPECIAL ECONOMIC ZONE (SEZ). WHY IS THAT IMPORTANT TO INVESTORS?

The designation of the Dube TradePort as a SEZ demonstrates an effort by the Government to enhance the competitiveness of the manufacturing sector and encourage the beneficiation of available resources in the country, by offering a range of benefits for enterprises located within the designated zone.
 
Special Economic Zones are one of the Government’s strategic instruments implemented to drive inclusive economic
growth and deepen industrialisation and industrial rebalancing. Over and above the fact is that the Dube TradePort SEZ enjoys full support from both national and provincial government as well as local government. Dube TradePort is located in a prime coastal area within the fast growing King Shaka International Airport seamlessly integrated with intermodal road, rail and sea infrastructure. These are critical enablers for business efficiency and effectiveness.

WHAT ARE DUBE TRADEPORT’S STRENGTHS AS AN INVESTMENT DESTINATION?

The Dube TradePort’s strength as a leading South African investment destination is based on four founding pillars:

• Its key location: the Dube TradePort SEZ is close to major complementary transport and freight links and boasts world-class infrastructure.
• Infrastructure: As a secure, purpose-planned airport city and master-planned business environment, infrastructure has been designed in line with freight-orientation and cargo and is supported by the new King Shaka International Airport, which accommodates the world’s largest new generation aircraft.
• Service Offering: With its team of skilled experts, Dube TradePort SEZ drives the development of this competitive business environment, links both investors and developers to various regulatory bodies, thus assisting to facilitate the development process.
• Government Backing: Dube TradePort forms part of South Africa’s National Infrastructure Plan. The precinct is also aligned to the National Development Plan. Fully-owned and funded by the Provincial Government of KwaZulu-Natal, Dube TradePort is a key priority Infrastructural Development Project for the Province of KwaZulu-Natal.

THE FIRST PURPOSE BUILT AEROTROPOLIS IN AFRICA

The following makes Dube TradePort SEZ unique and very important to any investor:

• Dube TradePort is home to the state-of-the-art King Shaka International Airport
• 30 minutes from Africa’s busiest cargo port, Durban Harbour
• 90 minutes from Richards Bay Harbour
• The only facility in Africa combining an international airport, dedicated cargo terminal, warehousing, offices, retail, hotels and agriculture
• Forms the heart of the first purpose built aerotropolis in Africa and is destined to become a premier business and trade hub, which makes logistics a cost-effective proposition
• DTP SEZ’s air logistics platform, burgeoning seaport infrastructure, access to numerous global destinations and linkages to SADC countries, position KwaZulu-Natal as a key business point in South and southern Africa

THE FIRST PHASE OF DUBE TRADEPORT TRADE ZONE ONE IS FULLY LEASED. WHEN WILL FUTURE ZONES BE RELEASED, WHAT WILL THEY CONSIST OF AND ARE THERE ANY SIGNIFICANT INVESTORS IN THE PIPELINE?

Yes, TradeZone One is fully leased, attracted approximately R1.08 billion investments in the zone and has led to the
creation of 9 880 jobs in the South African economy (both direct and indirect jobs), of which 7 395 have been created
within KwaZulu-Natal.

TradeZone Two is currently under construction process and is going to be released in phases during 2018 and 2019
with its first phase ready for the top structure development. There is a pipeline of approximately R3 billion in investments.

Dube TradePort has already signed a lease agreement with one of the biggest pharmaceutical companies, Cipla Biotech Company. The Cipla facility will be South Africa’s first biotech manufacturing facility for the production of biosimilars with an estimated investment value of R1.3 billion, which will create more than 300 direct permanent jobs. This state of the art facility is set to produce a range of affordable treatments for cancer and other autoimmune diseases for the African and global market. This enhances the development of the pharmaceutical cluster within Dube TradePort SEZ. Already, more than 16 investors ranging from pharmaceutical, electronics and general manufacturing are lined-up to locate in TradeZone Two.

WHAT PRIORITY SECTORS DOES DUBE TRADEPORT FOCUS ON?

The targeted Priority Sectors include:

• Aerospace and aviation-linked manufacturing and related services; agriculture and agroprocessing including horticulture, aquaculture, and floriculture; electronics manufacturing and assembly; medical and pharmaceutical production and distribution; and clothing and textiles.
• The supplementary sectors include: freight-forwarding and aviation services; warehousing and storage; logistics and distribution; light manufacturing and assembly; high-tech and automotive industries; general manufacturing; renewable industry; and cold storage.

AERONAUTICS HAS BEEN IDENTIFIED AS A SECTOR WITH SPECIAL SIGNIFICANCE FOR DUBE TRADEPORT. HAS ANY DEVELOPMENT TAKEN PLACE IN REGARD TO THIS SECTOR?

Yes, Dube TradePort SEZ is working closely with the Department of Trade and Investment Aerospace development
programme to enhance the manufacturing and assembling of value-added manufactured products and services e.g.
maintenance, repair and overhaul (MOR) services.

WHAT IMPACT DOES DUBE TRADEPORT HAVE IN THE REGION AS A CATALYST FOR ECONOMIC TRANSFORMATION?

Dube TradePort’s transformational goals are embodied in the organisation’s strategic documents including the B-BBEE strategy, which focuses on black industrialists and property developers and other procurement imperatives.

With an annual average spend of R 400 million on infrastructure Dube TradePort has the potential to have a sizable impact on the national transformation agenda through the manner in which it procures goods and services. Currently, a total of five companies qualifying for the black industrialist programme are operational within the zone and more black industrialists are expected to operate in TradeZone Two.

Of the contracts that we issue 95% have a 15-35% black share through joint venture arrangements that are a condition of the awards. Since the beginning of April 2017 alone we have awarded some R56 million to black owned
businesses.

In addition, in line with the Dube TradePort B-BBEE strategy, more black developers are targeted for property development. There is a good appetite in the market of black developers interested to do business with Dube TradePort. This is very exciting.

HOW DOES DUBE TRADEPORT IMPACT ON SMALL BUSINESSES' ROLE IN THE SUPPLY CHAIN IN THE REGION?

Dube TradePort undertakes training for emerging enterprises. This extensive programme covers many disciplines wherein entrepreneurs and staff of these enterprises receive formally recognised qualifications. Knowledge gained yields positive impact on their ability to run a business more effectively, in a manner that will allow them to gain access to financial instruments like loans and overdrafts, and actually compete for government and private sector work.

There is also a mentorship programme and other forms of financial assistance that provide critical resources for them to be able to undertake projects on jobs that they have been awarded through Dube TradePort.

WHAT DO YOU BELIEVE HAS BEEN THE KEY CONTRIBUTOR TO DUBE TRADEPORT’S SUCCESS?

The development of Dube TradePort is integrally linked to that of all our partners be it provincial and local government or our development partners, Airports Company South Africa and also Tongaat Hulett.

GENERAL BENEFITS FOR BUSINESSES TO OPERATE WITHIN DUBE TRADEPORT’S SEZ
Preferential 15% Corporate Tax

• Building Allowance: 10% per annum for qualifying buildings and fixed structures
• Employment incentive for low salary workers
• Customs Controlled Area (CCA). Import duty rebate for production related and exportedproducts. VAT exemptions under specific conditions for supplies procured in South Africa
• 12I Tax Incentive: Designed to support Greenfield investments, as well as Brownfield investments

THE SPECIAL ECONOMIC ZONE FUND

Primary objective: provide capital towards bulk and related infrastructure that leverages investment from third parties.

• Secondary focus: provide limited operator and investor project financial and advisory support to affirm the feasibility of such projects and for work that will measurably improve the efficiency and effectiveness of SEZs to improve the competitiveness and sustainability of SEZs and their supply chains.

Other benefits of investing in the Dube TradePort SEZ include:

• One Stop Shop (OSS) facility and other business facilitation support
• Customised solutions for investors (e.g. serviced sites and fit-for-purpose buildings)
• Environmental assistance (where applicable)
• Advanced infrastructure
• Marketing and other value-added services
• ICT service-based infrastructure, which allows for the connectivity of voice/data/internet and video services up to the tenant’s premises’ edge through Dube TradePort’s iConnect services
• Support with Safety, Health, Environment and Quality services
• Skills development-related incentives
• Export marketing (new market development)
• Job creation (as national and provincial grants can be accessed concurrently)
• Foreign investment (with compensations for the qualifying costs of moving new machinery and equipment (excluding vehicles) from abroad)
• Investing/re-investing in productive assets
• Black business development

TOP REASONS TO INVEST IN DUBE TRADEPORT SEZ:

Global competitiveness through incentives

• Tailored facilities for value-added manufactured goods and tradable services
• Ease of doing business through One Stop Shop services
• Safe investment
• World-class infrastructure network (road, air and sea)
• Quick availability of land customised to the needs of the investor
• Special Customs Controlled Area (CCA)