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HomeSouth AfricaFree StateFunding sought for upgrade and repair of established logistics facilities

Funding sought for upgrade and repair of established logistics facilities

Additional funding of R2-million is sought for the upgrading and minor repairs of existing facility in Special Economic Zone.

Company name and background:

Ensign Logistics is a KZN-based logistics company looking to relocate to the Maluti-a-Phofung Special Economic Zone from its current base of operations. This business will work with the VKB Group in transporting agro-processing goods as well as shipping containers.

  • Country of origin: RSA
  • Provincial location: Harrismith, Free State
  • Economic sector: Property development and logistics

The investor intends to develop an inland Agri-hub facility. The investor will be partnering with the VKB Group in order to create silos for local farmers. This business will also see local grain being moved in and around the Free State. The investor will also bring grain from KwaZulu-Natal to the Free State province for resale, storage and processing.

Investment value:
  • R50-million
Sources of funding:
  • Private and public funding available
Funding gap:

Additional funding of R2-million for the upgrading of the electrical requirements of the investor and minor repair works to the existing facility to be taken up by the investor at the Maluti-a-Phofung Special Economic Zone.

Incentives available:
  • Preferential 15% Corporate Tax
  • Building Allowance
  • Employment Incentive
  • 12I Tax Allowance

Number of jobs to be created (direct and indirect): 80


The project will employ previously disadvantaged persons; some of whom will be women, youth and people with disabilities.

Project schedule:

The project will commence immediately following agreement of freight rail rates between Transnet and Ensign Logistics, and with approval of the lease agreement.

Project status:

Transnet is conducting viability options for the logistics partner (Ensign). The project will commence once Transnet has confirmed viability of the project for freight logistics.

Regulatory requirements: 
  • Rail permit required.
Unblocking issues needed to be resolved:

An additional R2-million is required for the upgrade of the existing facility and electrical infrastructure.

  • VKB Group and Ensign Logistics
Interested parties are asked to contact the Project Promoters with subject line ‘Ensign Logistics’: 

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