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R45m for NM’s logistics park plant
Posted on: Friday, 23 September 2005. Article source: The Herald
The Nelson Mandela Bay Logistics Park has taken further strides in establishing itself as a key link in the local automotive supply chain.
Global shipping group Mediterranean Shipping Company announced yesterday it would be investing R45-million to establish a container yard facility in the park.
MSC, the world’s second largest shipping company, is no stranger to the automotive supply park industry, having established a similar container yard at the Automotive Supplier Park in Rosslyn, outside Pretoria.
The R394-million NMB Logistics Park, situated adjacent to the Volkswagen factory in Uitenhage, is a Vision 2020 project that is being developed by the Nelson Mandela Bay municipality in conjunction with the Automotive Industry Development Centre.
MSC director Georgi Georgiev said the concept of suppliers being close to the car manufacturers was a global trend. “Logistically, it makes sense to have suppliers in that area,” he said.
The MSC facility, on which groundwork has already started, will eventually amount to 60 000m², although the initial phase will be developed to cover 40 000m².
Georgiev said the company would provide container handling and maintenance services as well as a bonded area.
The facility is expected to be operational by the first quarter of next year.
Employment for 50 people will be created through the establishment of the container yard. This will be in addition to the more than 30 staff at the company’s local office in Central.
Director for the park development, Lance Schultz, said the container yard was a critical link in the park’s logistics chain and added tremendous value to the concept and its tenants.
He said negotiations with another 10 prospective tenants were in final negotiations, with announcements on the successful conclusion of talks expected to be made soon.
He said the park was expecting to attract between 15 and 20 tenants over the next two years, and was expecting to at least break even from an operational point of view within this period.
He indicated the municipality had committed to extending the land for development to 211 hectares, from the current 54ha, as the growth potential could warrant this land usage.
He said experience from the Rosslyn project showed that the value of property adjacent to the development had risen dramatically – by as much as 200%. For this reason, they had negotiated the additional land in order to avoid future hiccups.
He said this could be used to accommodate other industries outside of the automotive sector.
The park’s two other signed tenants include global logistics service provider Schnellecke and specialised detergent manufacturer and packaging distributor Baypac.
Global shipping group Mediterranean Shipping Company announced yesterday it would be investing R45-million to establish a container yard facility in the park.
MSC, the world’s second largest shipping company, is no stranger to the automotive supply park industry, having established a similar container yard at the Automotive Supplier Park in Rosslyn, outside Pretoria.
The R394-million NMB Logistics Park, situated adjacent to the Volkswagen factory in Uitenhage, is a Vision 2020 project that is being developed by the Nelson Mandela Bay municipality in conjunction with the Automotive Industry Development Centre.
MSC director Georgi Georgiev said the concept of suppliers being close to the car manufacturers was a global trend. “Logistically, it makes sense to have suppliers in that area,” he said.
The MSC facility, on which groundwork has already started, will eventually amount to 60 000m², although the initial phase will be developed to cover 40 000m².
Georgiev said the company would provide container handling and maintenance services as well as a bonded area.
The facility is expected to be operational by the first quarter of next year.
Employment for 50 people will be created through the establishment of the container yard. This will be in addition to the more than 30 staff at the company’s local office in Central.
Director for the park development, Lance Schultz, said the container yard was a critical link in the park’s logistics chain and added tremendous value to the concept and its tenants.
He said negotiations with another 10 prospective tenants were in final negotiations, with announcements on the successful conclusion of talks expected to be made soon.
He said the park was expecting to attract between 15 and 20 tenants over the next two years, and was expecting to at least break even from an operational point of view within this period.
He indicated the municipality had committed to extending the land for development to 211 hectares, from the current 54ha, as the growth potential could warrant this land usage.
He said experience from the Rosslyn project showed that the value of property adjacent to the development had risen dramatically – by as much as 200%. For this reason, they had negotiated the additional land in order to avoid future hiccups.
He said this could be used to accommodate other industries outside of the automotive sector.
The park’s two other signed tenants include global logistics service provider Schnellecke and specialised detergent manufacturer and packaging distributor Baypac.
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