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Northern Cape Business 2020/21 edition

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The 2020/21 edition of Northern Cape Business is the 10th issue of this highly successful publication that has, since its launch in 2009, established itself as the premier business and investment guide for the Northern Cape Province. Officially supported and used by the Northern Cape Department of Economic Development and Tourism, Northern Cape Business is unique as a business and investment guide that focuses exclusively on the province. In addition to comprehensive overviews of sectors of the economy, this publication has a particular focus on specific, packaged, investment opportunities. These include plans for the establishment of Special Economic Zones (SEZs) within the province, which have specific incentives designed to make investment into the Northern Cape even more attractive. The hi-tech exploits of astronomers and engineers in search of a landspeed record are the focus of an article on engineering sector while the rapidly expanding solar energy sector which continues to attract significant capital is discussed in some detail.

and Rail Project Project

and Rail Project Project Sheet 21 June 2018 epartment of Transport, Safety and Liaison (NCDTSL) al Department of Transport, Department of Public Enterprises, Treasury Consulting JV (TM) tics, NAKO ILISO FEL2 phase. Finalisation of FEL2 is planned for December 2018. +/-40% accuracy. Rail = ~R9 billion +/-50% t and 18 000 indirect jobs Project location Boegoebaai is approximately 60km north of Port Nolloth and 20km south of the border between Namibia and South Africa in the Richtersveld Local Municipality area. udy at FEL 2 level to be completed end of April 2019 ry bulk export il line (550 odate catalyst for constrained sion from anha line anese route n gas fields mining tructed close ovince and e SA port pment y for SA Project background The Northern Cape Province has the volumes of Comment commodities to warrant a deep-sea commercial port, specifically as a result of mining and agricultural activities. All commodities are currently transported via road or rail for exports through ports in other New volume from junior miners Lower cost logistic solution Closest port to mines FOCUS Boegoebaai Port Port and Rail Infrastructure Development Project. Multi-purpose commodities, agricultural, mining and low container volumes provinces, effectively making the Northern Cape province economically landlocked, even though it has access to 338km of Atlantic coastline. Despite a 70% gross domestic product (GDP) growth in the transport sector between 2010 and 2016, save for Port Nolloth, the Northern Cape did not experience the GDP growth as a result of seaport activities. The Boegoebaai site has all the advantages for the potential development of a deep-sea port, namely: the 20-metre contour is 250m offshore and it is a greenfield site owned by the people of the Richtersveld through the Community Property Association (CPA). Project key drivers · To reduce the economic cost of moving cargo within the Northern Cape hinterland. · To unlock greater export logistics capacity for minerals from the Northern Cape. · To optimise the cargo distribution within the South African port system. · Stimulating regional and provincial socioeconomic development. · Securing a competitive advantage regionally for South African ports. · Offers an alternative to Saldanha Bay for exporting surplus volumes of minerals. Targeted sectors Exporting dry bulk, liquid, bulk commodities and containerised multi products. Key facts Project metrics Capital cost Temporary jobs created during construction R13.2-billion 1 000 per year over 3 years Permanent jobs created at the port 400 Export volumes On average 9 megatons per annum of dry bulk On average 30 000 TEUs per annum Import volumes On average 1.5 megatons per annum On average 100 000 TEUs per annum Project indicators Mainly manganese Mainly agriculture Mainly diesel General cargo Project IRR 15,5% Project NPV +R2.561-billion Economic IRR 47,4% Economic NPV Promotion of Economic Growth a Development in the Northern Ca SUMMARY FINDINGS +R43.72-billion Economic Benefit Cost Ratio 2.43 Economic benefits to the region over time • Surrounding towns expand and develop •Land values increase •Additional jobs in the mining sector due to expansion in export of minerals 13th Fl, Cn Posta NORTHERN CAPE BUSINESS 2020/21 20

FOCUS Boegoebaai: Port, Rail & Infrastructure Development Project Project Location The Boegoebaai Port, Rail & Infrastructure Development Project is situated approximately 60km north of Port Nolloth and 20km south of the border between Namibia and South Africa in the Richtersveld Local Municipality area. The figure below shows the position of Boegoebaai. Project description Deep-water port development comprising two berths: one dry bulk export berth and one break bulk berth, supported by a 550km railway line, bulk services and associated social infrastructure. Transaction advisory team TM/Nelutha Consulting (JV) was appointed by the Northern Cape Department of Transport, Safety and Liaison (NCDTSL) to embark on Transactional Advisory Services to assist with project structuring, technical feasibility, financial viability and potential funding mechanisms to realise the dream of a Northern Cape Deep Water Port which is strategically poised to support producers with exports and to attract potential investors. Public-Private Partnership This project will be structured as a PPP, primarily to transfer risk and to source investment. Optimal risk allocation creates value. By granting a long-term concession, market, investment and operational risks can be transferred to a terminal that can absorb part of the commercial risk. A PPP for a deep-water port of the nature being contemplated at Boegoebaai would typically operate within a concession framework. This means that the private party/concessionaire is granted permission by the appropriate public procuring entity to design, build, finance, insure, operate and maintain the port and collect revenues from it, for a fixed period of time after which the port will be handed back to the public entity. The project is being developed in terms of the PPP Project Cycle in terms of the Treasury Regulation 16 of the Public Finance Management Act, 1999. The development of a Northern Cape Provincial SEZ Establishment Framework will be used for a Special Economic Zone as an economic growth and development instrument to attract new local and foreign investment. 21 NORTHERN CAPE BUSINESS 2020/21

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