The Coega industrial development zone offers “enormous potential value to the country’s motor vehicle industry as it could present a solution to the industry’s logistical challenges” says the Port Elizabeth Regional Chamber of Commerce and Industry (PERCCI).

PERCCI CEO Alfred da Costa says that the new harbour could ease the auto industry’s logistical problems experienced at other local ports. The Coega development which includes the harbour has already received several billion rands of investment from government.

Motor vehicle companies are among exporters that suffered when the country’s main ports became heavily congested last year. Turnaround times at Durban harbour are still not at the desired level.

Da Costa says Coega could provide an ideal location as a transit point for shipments passing between the Far East, Europe and South America and that the zone represents a “great investment opportunity” for motor manufacturers and suppliers.

Other opportunities which Coega will offer the industry will be discussed at the 2004 Made in South Africa Automotive Conference which is due to take place in Port Elizabeth from 4 to 6 May.

Coega is part of the government’s efforts to attract large investment into export-orientated manufacturing operations.

The conference organiser Chris Wright says that Coega could be developed as the industry’s essential export gateway.

He adds that South Africa is ideally placed as a low-cost production centre for more than 30 other right-hand-drive markets around the world.

The automotive sector’s contribution in 2001 comprised 12% of all of SA’s total exports.