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News Article - Automotive
Motor exports for East London port
Posted on: Friday, 22 February 2002. Article source: Eastern Cape Business News
EAST LONDON harbour could become South Africa's major export port for motor vehicles manufactured on the Reef, in addition to DaimlerChrysler, says the CEO of the Department of Trade and Industry's Enterprise Organisation, Mahlape Mahale. She said an agreement had already been made with BMW to export cars through East London. "The storage facility at East London is the best in the world," she added. Speaking at a meeting of the National Assembly's trade and industry committee, Mahale announced that the East London industrial development zone (ELIDZ) will be approved by Cabinet by March 20 at the latest. In a major boost for the project, Mahale said she believed East London should also be the major export harbour for motor vehicles manufactured on the Reef. "We think East London has the potential for the export of vehicles for BMW, Nissan and Ford." It was also revealed by IDZ chief executive Peter Miles that the study by the National Ports Authority (NPA) on the possible expansion of the East London port would be completed soon. A decision could then be made on whether a major expansion of the harbour should be undertaken and the construction of a new container terminal. Miles also said that a study being conducted by Spoornet into the upgrading of the railway line between East London and the Reef should be completed by the end of next month. That would allow a decision to be made on the upgrading. Mahale said two of the major ''themes'' of the IDZ would be the motor industry and textiles such as wool, mohair and leather. Mahale said the Eastern Cape was the leading province for IDZs, adding the East London project would proceed much faster than Coega ''because of the lessons we learned at Coega''. Regarding the designation of the IDZ, she said the documentation was on Trade and Industry Minister Alec Erwin's desk ahead of being taken to Cabinet for approval. She said this would take two to three weeks. Mahale said DTI had made a further R8.07 million available for future studies on the project.
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