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Final Report DEPARTMENT OF ECONOMIC DEVELOPMENT, ENVIRONMENT & TOURISM FINAL REPORT FEASIBILITY STUDY ON INDUSTRIAL PARKS 18 July 2007 LIMPOPO DEPT OF ECONOMIC DEVELOPMENT 1 Feasibility Study on Industrial Parks ENVIRONMENT & TOURISM Final Report: July 18, 2007 GLOSSARY OF TERMS LIMDEV Limpopo Economic Development Enterprise LIBSA Limpopo Business Support Agency SEDA Small Enterprise Development Agency TIL Trade & Investment Limpopo IP Industrial Park ADSL Asymmetric Digital Subscriber Line HSDPA High Speed Downlink Packet Access LIMPOPO DEPT OF ECONOMIC DEVELOPMENT 2 Feasibility Study on Industrial Parks ENVIRONMENT & TOURISM Final Report: July 18, 2007 TABLE OF CONTENTS EXECUTIVE SUMMARY .......................................................................................................................... 7 1. INTRODUCTION & BACKGROUND .................................................................................................. 9 2 SCOPE AND OBJECTIVES ................................................................................................................... 9 2.1 OBJECTIVES............................................................................................................................... 9 2.2 SCOPE........................................................................................................................................... 9 3 METHODOLOGY ................................................................................................................................. 10 3.1 PHASE 1: INCEPTION & MOBILIZATION......................................................................... 11 3.1.1. INCEPTION ......................................................................................................................... 11 3.1.2 MOBILIZATION................................................................................................................... 12 3.2 PHASE 2: DATA GATHERING ............................................................................................... 12 3.2.1. DESKTOP STUDY ............................................................................................................... 12 3.2.2 FIELD SURVEY: INTERVIEWS........................................................................................... 12 3.3 PHASE 3: ANALYSIS & SYNTHESIS.................................................................................... 13 3.4 PHASE 4: PROJECT REPORTS ............................................................................................ 13 3.5 CLOSE-OUT SESSION............................................................................................................. 13 3.6 CONCURRENT ACTIVITIES ................................................................................................. 13 3.7 THE PROJECT TEAM STRUCTURE.................................................................................... 14 4 FINDINGS: INDUSTRIAL PARKS .................................................................................................... 14 4.1 GIYANI ....................................................................................................................................... 14 4.2 THOHOYANDOU ......................................................................................................................... 15 4.3 NKOWANKOWA ...................................................................................................................... 15 4.4 SESHEGO................................................................................................................................... 15 4.5 LEBOWAKGOMO.................................................................................................................... 15 5 PROFILES OF THE INDUSTRIAL PARKS .................................................................................... 16 5.1 ECONOMIC PROFILES OF THE INDUSTRIAL PARKS .................................................. 16 5.1.1. GIYANI ................................................................................................................................. 16 5.1.2 THOHOYANDOUU ................................................................................................................ 17 5.1.3 NKOWANKOWA .................................................................................................................. 18 5.1.4 SESHEGO............................................................................................................................. 18 5.1.5 LEBOWAKGOMO................................................................................................................ 19 5.2 EMPLOYMENT PROFILES.................................................................................................... 20 5.2.1 EMPLOYMENT: GIYANI..................................................................................................... 21 LIMPOPO DEPT OF ECONOMIC DEVELOPMENT 3 Feasibility Study on Industrial Parks ENVIRONMENT & TOURISM Final Report: July 18, 2007 5.2.2 EMPLOYMENT: THOHOYANDOUU .................................................................................... 21 5.2.3. EMPLOYMENT: NKOWANKOWA...................................................................................... 22 5.2.4 SESHEGO............................................................................................................................. 22 5.2.4 EMPLOYMENT: LEBOWAKGOMO ................................................................................... 23 5.3 UTILITIES.................................................................................................................................. 23 6 OCCUPANCY LEVELS........................................................................................................................ 24 6.1 OCCUPANCY LEVELS............................................................................................................ 24 6.1.1 OCCUPANCY: GIYANI........................................................................................................ 24 6.1.2 OCCUPANCY: THOHOYANDOU....................................................................................... 25 6.1.3 OCCUPANCY: NKOWANKOWA......................................................................................... 25 6.1.4 OCCUPANCY: SESHEGO................................................................................................... 25 6.1.5 OCCUPANCY: LEBOWAKGOMO ...................................................................................... 26 6.2 ACCOMMODATING NEW TENANTS ................................................................................. 26 7 SHOULD IPS BE REFURBISHED? .................................................................................................... 26 7.1 EVALUATION........................................................................................................................... 26 7.2 RENTS......................................................................................................................................... 28 7.3 OPERATING COSTS ................................................................................................................ 29 7.3.1 TOTAL EXPENSES .............................................................................................................. 30 7.3.2 PERSONNEL COSTS ........................................................................................................... 30 7.3.3 RATES AND TAXES ............................................................................................................. 30 7.3.4 REPAIRS AND MAINTENANCE.......................................................................................... 30 7.3.5 WATER AND ELECTRICITY ............................................................................................... 30 7.3.6 SECURITY............................................................................................................................ 31 7.4 RETURN ON INVESTMENT ASSESSMENT........................................................................ 31 7.4.1 OVERVIEW: RETURN ON INVESTMENT: ALL IPS ......................................................... 32 7.4.2 RETURN ON INVESTMENT: GIYANI................................................................................. 32 7.4.3 RETURN ON INVESTMENT: THOHOYANDOU ................................................................ 33 7.4.4 RETURN ON INVESTMENT: NKOWANKOWA.................................................................. 34 7.4.5 RETURN ON INVESTMENT: SESHEGO ............................................................................... 34 7.4.6 RETURN ON INVESTMENT: LEBOWAKGOMO ............................................................... 35 8 POTENTIAL PROJECTS FOR IPS..................................................................................................... 35 8.1 POTENTIAL PROJECTS LIST ............................................................................................... 36 8.2 PROPOSED PROJECTS SPACE REQUIREMENTS............................................................ 37 8.3 PROPOSED PROJECTS' POTENTIAL EMPLOYMENT................................................... 38 9 MANAGING THE IPS........................................................................................................................... 40 LIMPOPO DEPT OF ECONOMIC DEVELOPMENT 4 Feasibility Study on Industrial Parks ENVIRONMENT & TOURISM Final Report: July 18, 2007 9.1 CURRENT MANAGEMENT
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