Project information

  • Project:  
    De Aar Logistics Hub
  • Owner: 
    Northern Cape Department of Transport, Safety and Liaison (NCDTSL)
  • Key Stakeholders:
    Transnet, National Department of Transport, Department of Public Enterprises, National and Provincial Treasury
  • Transaction Advisor:
    TM and Nelutha Consulting JV (TM)
  • Technical Consultants:
    PSP Logistics, Fasken, Aurecon and NAKO ILISO
  • Project Status:
    The project status is at Feasibility Study Stage. The next steps will be to conduct a Study Tour and Investors Roadshow. Issue an RFQ in November 2018
  • CAPEX:
    Logistics Hub = ~R2.5-billion
  • Estimated Project Development Start Date:
    Financial close and award estimated to be in March 2020
  • Estimated Jobs to be Created:
    2,500 permanent and 15,000 indirect jobs

Project description

The project involves the development of a Logistics Hub in the town of De Aar in the Northern Cape Province of South Africa, that will offer the following infrastructure to identified tenants:

  • Container Terminal which will act as a Trans-Shipment Inland (Dry) Port as well as consolidation point for Freight
  • Agricultural Warehouse and Storage Facilities
  • Vehicle Storage Yard
The objectives for the development include but are not limited to:
  • Provide a sustainable transport network for the transportation freight/products by small miners and farmers
  • Provide relief from road-based freight transportation in the Northern Cape
  • Revitalize the rail line to and from De Aar
  • Influence economic development
  • Ensure creation of jobs in the area
Further to the above, the Inland Dry Port will:
  • Facilitate road to rail migration
  • Provide a more efficient logistics route for manganese to the Port(s) of Export
  • Potential of a Fuel, Oil and Gas storage facility
  • Serving the transport and logistics needs of the Renewable Energy market segment
  • Economic catalyst for the Northern Cape Province and specifically the Pixley ka Seme District Community
  • Reducing the cost of moving cargo
  • Optimizing the cargo distribution to the SA port system
  • Stimulating regional socio-economic development
  • Securing a competitive advantage regionally for SA ports

The envisaged impact on the economy in Year 1 of Operation is estimated to be a minimum of R1.7-billion.

Project Commodity Mix

Commodity Volume (mtpa) Comment
Container Terminal

Agricultural Commodities

Break-Bulk

Vehicles

400,000

100,000

7,000

8,500

 

 

 

Vehicles per annum (Base data: 2015)

Funding Model

  • Public-Private Partnership to be adopted
  • Multi-tiered sub concessions

Contact

Potential private sector investment partners interested in this project are invited to contact the Northern Cape Department of Economic Development & Tourism

Or:

Northern Cape Department of Transport, Safety and Liaison
Tel: 053 839 1743 or 053 839 1835
E-mail: mdichaba@ncpg.gov.za