Building on its positive impact, the Dube TradePort Special Economic Zone (SEZ), in Durban, KwaZulu-Natal, is expanding key infrastructure, with an overarching goal of enhancing industrial competitiveness.

Over the past financial year, the Dube TradePort SEZ has secured R1.8-billion in new private-sector investment, bringing the total cumulative investment since its inception to R4.2-billion, says Dube TradePort SEZ CEO Hamish Erskine.

The SEZ created 1 846 permanent jobs last year – with a total of 5 242 direct jobs created to date and 51 000 indirect jobs that are supported throughout South Africa through the activities within Dube TradePort SEZ – in addition to about 1 954 temporary jobs created during construction in the last year.

Erskine says tenants within the SEZ exported goods valued at R2.5-billion and handled fresh produce worth R50-million through the Dube AgriZone.

The Dube TradePort offers investors holistic support through innovative infrastructure provision, guidance on various regulatory frameworks, as well as the SEZ’s “one-stop shop” and its business after-care unit. These initiatives aim to facilitate ease of doing business and enhance operational efficiencies within the zone.

Additionally, investors can benefit from national incentives provided by the Department of Trade, Industry and Competition, which include a preferential 15% corporate tax rate, building allowances and customs- controlled areas.

The SEZ’s overarching objectives include enhancing industrial competitiveness by enabling value-added manufacturing, leveraging regional resources, and stimulating economic development, as well as increasing regional and international trade.

Expanding Industrial and Commercial Opportunities

The Dube TradePort SEZ serves as a catalyst for economic development, providing several investment opportunities across various sectors, says Erskine.

The SEZ features an industrial precinct offering fully serviced land for manufacturing, assembly and related industries such as packaging, logistics and cold storage. It also provides turnkey warehousing in various sizes for manufacturers.

The adjacent Dube City precinct offers “prime, fully serviced commercial land” for retail, business process outsourcing, research and development, as well as communications technology operations.

Through its fully licensed telecommunications and cloud computing service provider, Dube iConnect, the SEZ enables IT firms to operate their own cloud computing environments using the provider’s data centres and related infrastructure. Consequently, IT firms can offer a full range of services, similar to established telecommunications companies, such as hosted solutions and disaster recovery.

Meanwhile, the SEZ’s cargo division offers a bonded warehouse and bonded trucking services, helping businesses, particularly importers, to manage cash flow more effectively.

In the agriculture sector, Dube TradePort provides specialised services through the Dube AgriLab, a plant tissue culture laboratory designed to propagate up to five-million genetically identical plants.

“This capability is highly sought after by commercial growers and farmers looking to scale their operations with disease-free plants, ensuring consistent quality and productivity,” says Erskine.

Key Developments

A major development at the SEZ is the construction of iZiko@Dube building, which is expected to be completed in the first half of this year and should be ready for occupation in September, with a major business process outsourcing tenant expected to occupy the facility by year-end, creating 1 800 new jobs.

Significant progress is also being made in Dube TradeZone 2, the second phase of the SEZ’s light industrial precinct.

Current developments include the construction of a facility for Ogihara South Africa (SA), a joint venture between CFAO SA subsidiary Toyota Tsusho Africa, and Ogihara Thailand, which is set to become operational in 2026. The facility will produce small- and medium-sized automotive stamped body parts.

Consulting and manufacturing company Auto Investment Holdings Group and automotive manufacturer Mahindra are also expanding their facilities within the zone, while the SEZ has completed a 5 000 m² warehouse now available for lease.

Additionally, progress is being made on its new industrial development in the north of the SEZ, which will reach the KwaDukuza and Ndwedwe municipalities.

The Dube TradePort SEZ will also expand its manufacturing capacity with the development of the third phase of its light industrial precinct.

Infrastructure Resilience and Sustainability

While the municipality provides essential services, such as water and electricity, the SEZ has invested in multiple electrical connections and infrastructure to transport water to tenants in the event of disruptions, ensuring stability and availability of essential utilities.

Investments in renewable-energy production also support investors within the zone, ensuring the long-term sustainability and competitiveness of their operations, particularly in international markets.

“We are exploring various options for generating renewable energy to enhance the attractiveness and resilience of our investors’ products and services,” Erskine says.

Among these initiatives is the development of 4.4 MW solar PV farm in AgriZone 2, with the appointment of a service provider to design and construct the farm being finalised.

The solar farm will complement the existing 1 MW solar capacity already installed at the precinct.

Dube TradePort SEZ has also launched a Net Zero Carbon strategy, aimed at achieving carbon neutrality by 2050. Aligned to this is its carbon sequestration programme, which includes reducing carbon emissions through electricity saving, using renewable energy, alien plant species clearing projects and land rehabilitation projects.

Over the past year, the programme has successfully rehabilitated about 267 ha, says Erskine.

The SEZ will also construct a water reservoir with a capacity to hold about seven- million litres, providing about 48 hours of water supply for the precinct, he comments.

Far-Reaching Impact

The Dube TradePort SEZ’s role in KwaZulu-Natal is further strengthened by the SEZ’s airline route development programme, which has facilitated the expansion of air connectivity between the province and various sub-Saharan and international markets, says Erskine.

“These services have opened access to new markets, stimulated intra-African trade, and contributed directly to the competitiveness of businesses in the region, particularly within the SEZ.”

As a result of the programme, passenger volumes at King Shaka International Airport have surpassed five-million over the past five years, with more than 60 496 t of cargo having been handled through the Dube Cargo Terminal over the same period.