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N2-Road Mount Frere Alfred Nzo District Municipality Umzimvubu Local Municipality Eastern Cape Province

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N2-Road Mount Frere Alfred Nzo District Municipality Umzimvubu Local Municipality Eastern Cape Province N2-Road Mount Frere Alfred Nzo District Municipality Umzimvubu Local Municipality Eastern Cape Province September 2015 1 | P a g e Company Details (herein after referred to as Petrorex) Company Name DOTCOM TRADING 278 Trading as Petrorex Registration number CK 2008/008384/23 Members JL Pieterse Slogan “Energy in Motion” Official Logo Website www.petrorex.co.za Address 42 Bontebok crescent Theresaburg security village Thereseapark Pretoria Postal Address P O Box 52039 Dorandia 0188 Telephone number 012-542 1368 Hannes Pieterse 082 440 7969 e-mail [email protected] Dawie Pieterse 074 585 5085 e-mail [email protected] 2 | P a g e DOCUMENT DISCLAIMER This report has been prepared by Petrorex , with all reasonable skill, care and due diligence within the terms of the appointment with the client within the parameters specified in this document, incorporating our General Terms and Conditions of Business and taking account of the resources devoted to it by agreement with the client. We disclaim any responsibility to the client and others in respect of any matters outside the scope of the above. No warranty or representation are made, either expressed or implied, with respect to fitness of use and no responsibility will be accepted by Petrorex or the authors for any losses, damages or claims of any kind, including, without limitation, direct, indirect, special, incidental, consequential or any other loss or damage that may arise from the use of the document This report is confidential to the client and we accept no responsibility of whatsoever nature to third parties to whom this report, or any part thereof, is made known. Any such party relies on the report at their own risk Petrorex does not accept responsibility for any errors or omissions in the supplied information and does not accept any consequential liability arising from commercial decisions or actions resulting from them. Any decision based on the contents of this report is, however, the sole responsibility of the decision maker. Opinions presented in this report apply to the site conditions and features as they existed at the time of the survey, and those reasonably foreseeable. These opinions do not necessarily apply to conditions and features that may arise after the date of this Report, about which Petrorex had no prior knowledge nor had the opportunity to evaluate. No part of this document may be changed/ altered without permission and approval of Petrorex. 3 | P a g e DOCUMENT CONTROL SHEET: Report prepared for: Umzimvubu investment Group Report Number: 20150903-03 Remarks Date Prepared by Signature Reviewed by Signature Authorized by Signature Project Number 1st issue None 03/09/15 Dawie Pieterse Hannes Pieterse Hannes Pieterse 201450903-03 1st - - - - - - - - - Revision 2nd - - - - - - - - - Revision 3rd - - - - - - - - - Revision Distribution Name Company Copy No Date Authorized by 4 | P a g e DECLERATION DOTCOM TRAIDING 278 Registration number 2008/008384/23 (Herein after referred to as Petorex) including of its directors, Chief Executive Officer, members, consultants, employee’s, sub-contractors/consultants including of their direct family members hereby declare the following : 1. That Petrorex including of its directors, Chief Executive Officer, members, consultants, employee’s, sub-contractors/consultants including of their direct family members does not have personal relationship outside of the work environment with the client / applicant. 2. That Petrorex does not have a relationship to sponsor (consultant serves as an executive to a company sponsoring the research or serves on the company’s board of directors); 3. That Petrorex does not combine the business operations in any way with the client’s /applicant’s business operations instead of maintaining all such operations separately and distinctly. 4. That Petrorex does not have any financial or personal interest/gain in the proposed development, or from its developers or any subsidiaries, apart from the provision of the services rendered and accepted from the official appointment. 5. That Petrorex does not have any non-financial interest, gain in the proposed development or from its developers or any subsidiaries, apart from the provision of the services rendered and accepted from the official appointment. 6. That the consultant is listed as an investigator on the project or is a member of the research team within the Petrorex business unit 7. That the Banking details provided for payment is registered and in use by Petrorex and not registered to any directors, Chief Executive Officer, members, consultants, employee’s, sub-contractors/consultants in their personal capacity. 8. The business does not establish a quality standard for the individual (except that the business may provide plans and specifications); 9. That Petrorex does not establish a quality standard for the client’s/ Applicant’s development and planning process (except that Petrorex may provide plans, recommendations and specifications regarding work but cannot oversee the actual work or instruct the individual as to how work will be performed) 5 | P a g e 10. That Petrorex does not dictate the time, performance and progress of the planning and development process. 11. That the research and report was compiled and completed under supervision of the director, CEO before distributed 12. That the information including but is not limited to research and the report compiled and completed will be confidential and under the distribution from the client / applicant or with requested approvals distributed from Petrorex. Petorex including of its directors, Chief Executive Officer, members, consultants, employee’s, sub-contractors/consultants including of their direct family members will at the best of their ability, capability and knowledge adhere to the declaration obligations. A breach of the declaration will result in an investigation and findings will be made available between the parties for action to be taken. I Dawid Jacobus Pieterse ID No 9002285071087 hereby being of sound mind hereby acknowledge fully understand and accept the declaration made available. Consultant 21//09/2015 Signature Position Date I Johannes Lodewickus Pieterse ID No 6507215004084 hereby being of sound mind hereby acknowledge fully understand and accept the declaration made available. CEO 21/09/2015 Signature Position Date 6 | P a g e INDEX DESCRIPTION PAGE Document Disclaimer 3 Document Control Sheet 4 Declaration 5 Acronyms used 8 SECTION ONE INTRODUCTION / 1 Background 10. 2 Planning approach, objectives & limitations 10. 3 Work method 11. 4 Use of this document 12. 5 Report outline 13. SECTION TWO THE MACRO ENVIRONMENT 1. Background 15. 2. Regulatory accounting system 18. SECTION THREE THE MICRO ENVIRONMENT, PHYSICAL AND LEGAL FEASIBILITY, MARKET FEASIBILITY, FINANCIAL VIABILITY, ECONOMIC FEASIBILITY. 1 Physical and legal feasibility 22 1.1 Geographic site location 22 1.2 Description of the proposed development 24 1.3 Accessibility 25 1.4 Visibility 26 1.5 Property Information 27 1.5.1 Title deed information 27 1.5.2 Surveyor’s information 28 1.5.3 Zoning information 29 1.5.4 Environmental authorization 29 1.5.5 Site and Retail license 30 1.5.6 Availability of services 30 1.6 The planned development 31 1.6.1 The development concept 31 1.6.2 The development team 34 2. Market feasibility 34 2.1 Catchment area 34 2.2 Demographic and economic information 37 2.3 Existing road network 44 2.4 Fuel sales projection / Market demand analysis 45 2.4.1. Volume projection 46 2.4.2 In Terms of socio-economic impacts 50 2.5 Competitor service stations 52 2.5.1 Market supply analysis 52 2.5.2 Undeveloped Service Stations 56 3. Financial viability 56 3.1 Operational viability 57 3.2 Development viability 61 3.2.1 Oil Company transaction 62 3.2.2 The service station development assessment 63 3.2.2.1 The Income Approach 64 3.2.2.2 The Goodwill/Business assessment 67 7 | P a g e 68 SECTION FOUR CONCLUSION AND RECOMMENDATIONS – NEED AND DESIREBILITY REFERENCES Umzimvubu Local Municipality Integrated Development Plan 2013/2014- 1st IDP review for the period :2012-2017 Alfred Nzo District Municipality 2014/15 Integrated Development Plan Traffic Impact Assessment July 2015: Engineering Advice and Services (Pty) Ltd- Project Name Proposed Filling Station and Truck Stop NR00220 KM 9.8 Umzimvubu Municipality Revision of the guidelines for access to filling stations. – 07/2001 LIST OF TABLES PAGE Table 1 – GPS Co-Ordinates of proposed development 22. Table 2 – Population profile 38 Table 3- Population by Gender 40 Table 4 - Traffic Highlights of Site 688 (2015) N2. 46 Table 5 - Interception rates versus passing-by traffic. 47 Table 6 - Average Fill per Vehicle Type. 48 Table 7 - Projected average fuel sales per month from year 1 to year 5. 50 Table 8 – Parties involved 56 Table 9 – RAS opex 59 Table 13 - Volume Loss – Market Shift Based On Shared Traffic Stream Appendix K Table 14 - Volume Loss – Moving Market Factor / Calculation Appendix K LIST OF FIGURES Figure 1- Location of the proposed development in relation to surrounding 23. suburbs in the area Figure 2- Proposed development in relation to the Surrounding road 24. network LIST OF APPENDIX’S Appendix A -Proposed service station layout Appendix B –Areal view of the application site and surrounding areas Appendix C –Proposed accesses Appendix D – Title Deed Information Appendix E – Surveyors information Appendix F – Zoning information Appendix G – Environmental Information Appendix H – Site and Retail License Appendix I – Photographs of the application site Appendix J –Photographs and information of the competition sites Appendix K –Financial analysis 8 | P a g e ACRONYMS USED: ACRONYMS. ADT Average Daily Traffic ADTT Average Daily Truck Traffic AMEF African Minerals and Energy Forum ATM Automatic Teller Machine APO Additional Profit opportunity BBBEE Broad Based Black Economic Empowerment BEE Black Economic Empowerment BID Background Information Document BSS Benchmark Service Station CBD Central Business District CBO Community Based Organization DCF Discounted Cash Flow.
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