Northern Cape Business 2018-19 edition

CONTENTS Introduction

CONTENTS Introduction CONTENTS Northern Cape Business 2018/19 Edition Foreword5 The Northern Cape’s unique guide to business and investment. Special features Regional overview 6 The Northern Cape’s clear and sunny skies are attracting astronomers and solar energy developers while the rugged beauty of the landscape draws increasing numbers of tourists. Plans for a Special Economic Zone and a harbour development offer new opportunities for economic growth. Boegoebaai Port and Rail Project 3 Harbour development to boost regional economy. Renewable energy 12 The Northern Cape is powering ahead of the field in solar and wind power generation. De Aar Logistics Hub 17 Centrally located hub will reduce costs. Investment opportunities 18 Nine-point plan aims to attract investors to the Northern Cape. Upington Special Economic Zone 20 More than 500 hectares of prime land availible for investors. Planned flash across the pan on track 22 The Bloodhound land speed record attempt is set for October. Square Kilometre Array Telescope 24 Unimaginable amounts of data will be collected in this transformative radio telescope project in the Karoo. Sol Plaatje University 26 First graduates celebrate as impressive new campus garners design awards. Economic sectors Agriculture34 Pecan nuts may be the next big thing. Grapes and wine 38 Northern Cape wine, grapes and raisins are exported all over the world. NORTHERN CAPE BUSINESS 2018/19 2

Project Sheet 21 June 2018 Boegoebaai Port Project Project Sheet 21 June 2018 Harbour development to boost regional economy. PROJECT INFORMATION Project Boegoebaai Port and Rail Project Owner Northern Cape Department of Transport, Safety and Liaison (NCDTSL) Key stakeholders PROJECT INFORMATION Transnet, National Department of Transport, Department of Public Enterprises, Treasury Transaction Project advisor TM and Boegoebaai Nelutha Consulting Port and Rail JV Project (TM) Technical Owner consultants PRDW, Northern PSP Logistics, Cape Department NAKO ILISO of Transport, Safety and Liaison (NCDTSL) Project Key status stakeholders The project Transnet, is in National FEL2 phase. Department Finalisation of Transport, of FEL2 is Department planned for of December Public Enterprises, 2018. Treasury CAPEX Transaction advisor Port = TM ~R6 and billion Nelutha +/-40% Consulting accuracy. JV (TM) Rail = ~R9 billion +/-50% Estimated Technical jobs to consultants be created 3 000 PRDW, permanent PSP Logistics, and 18 000 NAKO indirect ILISO jobs Project Project status status PPP Feasibility The project study is in FEL2 at FEL phase. 2 level Finalisation to be completed of FEL2 end is planned of April for 2019 December 2018. CAPEX Port = ~R6 billion +/-40% accuracy. Rail = ~R9 billion +/-50% PROJECT DESCRIPTION Estimated jobs to be created 3 000 permanent and 18 000 indirect jobs A greenfield, deep water port. Two berths; one dry bulk export Project Sheet berth and Project one status break bulk berth supported PPP Feasibility by a rail line study (550 at FEL 2 level 21 to June be 2018 completed end of April 2019 kilometers). Funding PROJECT The model DESCRIPTION port has the potential Public to accommodate Private Partnership to be adopted. Multi-tiered sub concessions Capesize A greenfield, vessels. deep water port. Two berths; one dry bulk export PROJECT berth and INFORMATION one break bulk berth supported by a rail line (550 Primary kilometers). drivers for The the port development has the potential include: to accommodate Project Capesize Capitalizes vessels. on description new economy, including: Boegoebaai Port and Rail Project Owner o Iron ore from junior miners, Northern creates Cape a catalyst Department for of Transport, Safety and Liaison (NCDTSL) A greenfield, deep-water port. Two Key Primary junior stakeholders drivers / development for the development miners currently Transnet, include: constrained National Department of Transport, Department of Public Enterprises, Treasury berths; by Capitalizes high one transportation dry on new bulk economy, costs export and including: exclusion berth and from Transaction larger advisor TM and Nelutha Consulting JV (TM) o Iron logistic ore solutions from junior i.e. miners, Sishen-Saldanha creates a catalyst line for one Technical o break Provides consultants bulk berth supported by rail junior a more / development efficient logistic PRDW, miners manganese currently PSP Logistics, constrained route NAKO ILISO line Project o (550 Strategically status kilometres). by high positioned transportation The to port capitalize The costs project has and on the exclusion is gas in potential CAPEX to accommodate Capesize Port = ~R6 billion vessels. +/-40% accuracy. Rail = ~R9 billion +/-50% FEL2 fields from phase. Finalisation of FEL2 is planned for December 2018. o Services larger base logistic for oil, solutions gas and i.e. offshore Sishen-Saldanha mining line industry o Provides a more efficient logistic manganese route Estimated o Potential o jobs Strategically of to an be Oil created positioned Refinery 3 to 000 to be capitalize permanent constructed and gas close fields 18 000 indirect jobs Project status Services base for oil, gas PPP and Feasibility offshore study mining at FEL 2 level to be completed end of April 2019 Economic catalyst for the Northern Cape Province and Potential of an Oil Refinery to be constructed close A greenfield, deep water port. Two berths; one dry bulk export berth and Economic one break catalyst bulk for berth the supported Northern Cape by a rail Province line (550 and kilometers). The port has the potential to accommodate Primary to othe port drivers for the industry development PROJECT o DESCRIPTION include: specifically the Richtersveld Community • Reducing Capitalises the to the cost port of moving on new cargo economy, Optimizing the cargo distribution within the SA port including: specifically the Richtersveld Community system Capesize • Reducing vessels. Iron ore the from cost of moving junior cargo Stimulating regional socio-economic miners, development creates drivers a competitive a catalyst for the development advantage for junior/develop- regionally include: for SA Primary Securing system ports Capitalizes ment miners on new currently economy, including: constrained o ports by high transportation costs and Volume PROJECT exclusion COMMODITY from MIX larger (mtpa) logistic solutions ie Sishen-Saldanha Volume line Commodity o (mtpa) • Provides o a more efficient logistic o manganese industry route • Strategically o positioned to capitalise to the port on gas fields • FUNDING Services specifically MODEL base the Richtersveld for oil, gas Community and offshore Reducing the cost of moving cargo mining industry • Potential system of an oil refinery to be constructed close to the port • Economic catalyst for the Northern Cape Province and specifically the Richtersveld community • Reducing the cost of moving cargo • Optimising the cargo distribution within the SA port system • Stimulating regional socio-economic development Optimizing the cargo distribution within the SA port Stimulating regional socio-economic development PROJECT COMMODITY Securing Iron a ore competitive MIX from junior advantage miners, creates regionally a catalyst for SA for junior / development miners currently constrained Commodity by high transportation costs and exclusion from Comment larger logistic solutions i.e. Sishen-Saldanha line Dry bulk – iron ore Provides a more efficient 5-10logistic manganese New volume route from junior miners Dry bulk – manganese Strategically positioned 2-5 to capitalize Lower on gas cost fields logistic solution Comment Dry bulk – iron Services ore base for oil, gas and 5-10 offshore mining Dry bulk – lead and zinc 1-2 Closest New port volume to mines from junior miners Dry bulk – manganese 2-5 Lower cost logistic solution Break bulk Potential of an Oil Refinery 0.5 to be constructed Multi-purpose close commodities, agricultural, mining and low container volumes Dry bulk – lead and zinc 1-2 Closest port to mines FUNDING MODEL Break Economic bulk catalyst for the Northern 0.5 Cape Province Multi-purpose and commodities, agricultural, mining and low container volumes Optimizing the cargo distribution within the SA port Stimulating regional socio-economic development Securing a competitive advantage regionally for SA ports • Securing a competitive advantage regionally for SA ports PROJECT COMMODITY MIX Commodity Volume (mtpa) Comment Dry bulk – iron ore 5-10 New volume from junior miners Dry bulk – manganese 2-5 Lower cost logistic solution Dry bulk – lead and zinc 1-2 Closest port to mines Break bulk 0.5 Multi-purpose commodities, agricultural, mining and low container volumes FUNDING MODEL Contact details: Northern Cape Department of Transport, Safety and Liaison | Tel: +27 53 8391743 or +27 53 8391835 E-mail: mdichaba@ncpg.gov.za