THE EAST LONDON Industrial Development Zone (ELIDZ) is set open for operation in July 2004. The East London Development Zone Corporation (ELDZC), which is developing the zone, is canvassing joint venture equity and operation partners for the 1 500 hectares that will be available for new industry. ELDZC business development manager Brenda Mabaso-Simelane told journalists at a media briefing that 42 projects have been identified for the IDZ. Specialist publication Engineering News reports that these projects include motor component manufacturing, optical fibre manufacturing, a metal press stamping mill, aluminium and magnesium high-pressure moulding, pharmaceuticals, ceramics, wood products and textiles. Prefeasibility studies for 12 of these projects have been completed. The National Ports Authority (NPA) has commissioned a study to investigate a new container terminal on the west bank and an extension of the port, while Spoornet has commissioned a study on the costing of the rail upgrade between East London and Gauteng. “The ELIDZ is currently working on a business plan for the upgrading of the rail link and holds ongoing meetings with the NPA regarding the transfer of the container terminal,” said Mabaso-Simelane. Located on the city’s west bank, adjacent to the existing port and airport, Mabaso-Simelane said the IDZ would be developed and serviced in phases. Phase 1, a 20-ha area, is fully serviced and is currently under construction for two international investors, while phase 1A is a designated customs secured area (250 ha), with its own customs facilities and personnel. Adjacent to phase 1A is the 110-ha phase 1B, an industrial services zone. Expressions of interest from engineering companies have been called for, with a view to undertaking the detailed engineering design for infrastructure. Once the design is complete, earthworks for phase 1A and 1B will begin, involving R270-million-worth of infrastructure development, including services to the value of about R165-million. Power Construction was awarded a tender for the first phase of the bulk infrastructure, to the value of R80-million, while investments of R400-million have already been concluded for phase 1. Provincial Government has already invested R50-million in infrastructure development for the IDZ, while National Government contributed a further R8-million. The State has earmarked an additional R98-million for infrastructure over the next three years. Mabaso-Simelane said the IDZ, one of four liberalised duty-free zones in South Africa, offered an ideal location for export-led manufacturing and services businesses, as well as offering investment incentives and some of the lowest input costs available anywhere in the world. This, she said, was complemented by world-class infrastructure and excellent access to global markets, notably to the US, in terms of the African Growth and Opportunity Act (Agoa), and the European Union (EU), through the South African-EU Free Trade Agreement. The South African government granted a licence in September last year for the IDZ to operate on the west bank of the Buffalo River, in the Buffalo City metropole. “The idea behind the IDZ is to encourage export investment by providing a duty-free customs-secure area and associated industrial park, manned by full-time customs officials, next to good-quality transport infrastructure, allowing duty-free imports and VAT-free purchases of South African goods, combined with major investment incentives,” said Mabaso-Simelane.