Nelson Mandela Bay boasts a R1.5 billion investment, with the construction of a distribution logistics facility for the Shoprite retail group.
Construction will take place at the site of the existing Shoprite Distribution Centre in Wells Estate, commencing next month.
A sod-turning ceremony was held to commemorate the start of the project, seen as one of the largest and most impactful to the economy of Nelson Mandela Bay over the past decade, particularly outside the Special Economic Zone and the mandate of the Coega Development Corporation.
This investment is a partnership between Shoprite and Equites Property Fund, the only specialist logistics property fund listed on the JSE.
The proposed property development will entail significant, and costly, additions and alterations to the existing distribution centre for the future benefit of Shoprite, including a new office building and major additions to the dry goods, returns, and perishables warehouses.
The total size of the expanded footprint is approximately 19 hectares, including some seven hectares of warehousing and offices.
The investment, which was attracted, facilitated and expedited by the municipality’s Trade and Investment sub-directorate through the Investor One-Stop Shop initiative, is set to create approximately 1,300 jobs upon completion.
Shoprite Chief Supply Chain officer, Andrew Havinga, said that in addition to this, 800 temporary jobs will be created during the development phase of the project.
He mentioned that this project is not just an investment, but is also about uplifting lives and creating opportunities.
“This particular project is a great example of how you cannot do things alone. We could not have achieved this without working together with local government, the local communities and local partners.
“We are especially proud about the job creation element as we pride ourselves on being the country’s largest private sector employer.
“This project ticks all the boxes of what Shoprite stands for. The facility will ensure that we get better and quality service from our suppliers so that we can cut costs for our customers,” Havinga explained.
He added that through this project there is a clear programme of SMME beneficiating, through construction and when the facility is operational.
“The facility will also open an opportunity for more SMME suppliers from the local market to benefit. We also understand the challenges that the country is facing, like the drought, electricity and emissions.
“The construction of this facility will take a green development approach. This means that the 90,000 square metre building will have a 30 percent saving in energy, water and emissions,” he said.
Nelson Mandela Bay mayor, Retief Odendaal, said that this investment is a clear indication that the metro is open for business.
“Investments of this magnitude give confidence that we are moving in the right direction as a city. The systems we have put in place to speed up business development, support and close oversight of those systems, have already yielded positive results.”
Odendaal thanked Shoprite for the massive investment.
“Thank you for trusting us with your investment. We will walk this road with you and will give you all the support.
“The jobs that will be created during construction, and once the facility is up and running will change the quality of life of the people of Nelson Mandela Bay,” he added.
Equites Property Fund CEO, Andrea Taverna-Turisa, said that as a company they are excited about launching their next venture in the Eastern Cape.
“The support from the municipality has been amazing. Usually developments of this magnitude are delayed by long processes of approval. The support and systems that the municipality have put in place have enabled us to make this project a reality. With this kind of support, we are confident that the process of construction and getting the facility operational will meet all the envisaged deadlines.”
The expected date of completion is in the last quarter of 2024.
