Distribution Junxion, Port of Gauteng, Offers a Mega Rail Opportunity and Incomparable Warehouse Savings

Distribution Junxion, Port of Gauteng, offers a mega rail opportunity and incomparable warehouse savings.

NT55 Investments is providing operators the exciting opportunity to manage, operate and/or lease a new private and highly efficient mega rail terminal, the heartbeat of Distribution Junxion, Port of Gauteng.

Developing Railway Park – Gauteng’s mega rail terminal.

For the road to rail initiative to radically transform South African transportation and logistics, and in-turn the economy, there needs to be an efficient and cost- competitive alternative to the current reality.

The Railway Park at Distribution Junxion, Port of Gauteng, is the foremost answer to this alternative.

At the heart of Distribution Junxion, Port of Gauteng, is the opportunity to operate a private mega rail terminal. Mega in efficiencies, mega in volume, the new Railway Park is set to contribute to the transformation of rail transportation on the Johannesburg/Durban corridor so that rail on this corridor is effectively faster and cheaper than road transport.

The current rail reality is that City Deep and Kaserne (including the four private terminals) turn around a full block train in approximately four days (2: Pieterse et al. 2016. Refer to relevant pages attached at the back). Railway Park promises to turn around a full block train within one hour.

By developing two full-length 750m spurs, Railway Park has the potential to turn around 1 680 000 containers a year. This is especially impressive, as the total amount of all containers coming in and out of Gauteng is about 1 600 000 a year (approx. 1 200 000 by road, and approx. 400 000 via rail).

Turning around a full block train within an hour also saves on costs by reducing rolling stock.

A terminal with this capacity and our super efficiency of turning a train around in one hour gives the government a very real alternative for road transport between Durban and Joburg.

Introducing competition between port terminal operators and in other areas such as warehousing and logistics at the ports could bring the performance of the major ports in line with international best practice (Finance Minister Tito Mboweni’s Plan: pg’s 24- 25. Refer to relevant pages attached at the back).

About Distribution Junxion, Port of Gauteng.

Distribution Junxion, Port of Gauteng is poised to become South Africa’s most desired and optimally located inland port due to its superior location, topography and scale. This groundbreaking inland port will transform Southern African logistics by saving money, improving supply chain performance and reducing cost.

There are significant savings on offer for cost-effective warehousing solutions, such as saving on earthworks, due to a land gradient of only 2m over a distance of 1,2km, and rental savings of up to a substantiated 20%, contingent upon comparisons with other sites and 50 000 + m2 warehouses.

Railway Park – the facts

 The shape and length of the land allows for an extremely efficient mega rail terminal  Located where the N3 and the Durban/Johannesburg railway line are closest to each other, and,  Connected by a major arterial road (Barry Marais Road), creating an extremely efficient intermodal swop  107 Hectares abutting the Durban/Johannesburg railway line (under the control of Transnet, not PRASA)  Provides 2,2km of straight on-site rail frontage  ‘Shovel ready’ level land will unlock logistical efficiencies unequalled in Gauteng  Next to Nederveen Road R103 (Old Durban/Johannesburg Road) – recently upgraded to the highest provincial-road specifications

The Durban/Johannesburg line can be connected to the outer railway line on the eastern side of Gauteng, facilitating connections to the Democratic Republic of Congo and Mozambique without having to go through the Passenger Rail Agency of South Africa (PRASA).

Scale, volume and turnaround.

The main reason why the proposed mega terminal will be able to handle such large volumes, and do it so efficiently, is due to the fact that there is 2.2kms of flat land in a straight line, allowing for loading from both sides of the container terminal. This uniquely flat land is positioned Next to Nederveen Road R103 (Old Durban/Johannesburg Road) – recently upgraded to the highest provincial-road specifications. Flat land also equates to substantial cost savings for large warehousing opportunities.

Another positive is that Rooikop station is positioned after the mega terminal, and Glenroy station is just before it. Why this is important is because both of them have large shunting yards where trains can dock if many arrive at the same time.

An analysis of the train transit and turnaround times indicates that the main problem remains with the operation of the intermodal rail freight terminals, both at the port and inland. This includes both the long time it takes for customers to receive goods by rail as well as poor tracking and information systems. Customers demand to know exactly where their goods are at any time, and most road haulers offer this service. (2: Pieterse et al. 2016. Refer to relevant pages attached at the back).

Putting an economic upliftment plan on track.

Ensuring transport becomes a key enabler in the South African economy is one of the Priorities of the National Development Plan.

The following is directly quoted from Finance Minister Tito Mboweni’s Plan (Finance Minister Tito Mboweni’s Plan: pg’s 24-25. Refer to relevant pages attached at the back).

 The Green Paper by the DOT proposes stricter enforcement of traffic laws, full cost recovery from road freight operators and related external environmental costs, and major improvements in rail services. o This opens the door for demand management on the N3. This will be discussed in further detail at the press briefing (Point added by NT55 Investments).

 Granting third-party access to the core rail network is crucial for promoting private sector participation in rail and concessioning of branch lines, while Transnet still retains ownership of all rail infrastructure assets  As seen in the energy and telecoms sectors, bringing in competition and private sector participation can increase investment and improve service delivery, without weighing on the balance sheets of state entities  This will also encourage the development of new and small firms in the infrastructure space, which will promote economic transformation  The direct impacts of more competition in the infrastructure space on the balance sheets of state-owned entities are likely to be outweighed by the efficiency gains to the rest of the economy  There are many opportunities for private sector participation in the transport sector. Government should invite private sector participation where it cannot presently afford to invest or where value for money can be demonstrated for a private sector risk premium  Furthermore, heavy goods vehicles are effectively subsidized as they currently do not fully pay for the maintenance costs arising from the negative externalities that they impose on road infrastructure.

Distribution Junxion, Port of Gauteng. Connecting the world to Africa through significant savings.

Distribution Junxion Port of Gauteng will consist of at least 1,2 million square meters of Gross Lettable Area (GLA).

The advantages of the prime location within the Champagne Position of Logistics is that double travel reduced to near zero, as goods now don’t need to travel past their entry point and be transported back again. It’s the only location in Gauteng where a state-of-the-art, inter-modal, inland port of unparalleled agility and innovation can be established.

Highway Park consists of 80 hectares, with a 1,2km frontage onto the N3 at the Barry Marais off-ramp.

Future Park is made up of 60 hectares of level land on Nederveen Road R103 (The old Durban/Johannesburg Road).

There are also 20 hectares of business/support services land bordering the Barry Marais Road available.

Geographically improving supply chain performance.

The site is optimally located before the economic center to allow for load-breaking imports as well as consolidation and containerization of exports to reduce double travel to near zero. This is thanks to easy access to all major arterials in Gauteng including the N3, N17, N12, R21, M2, Nederveen Road R103 and Barry Marais Road.

The area is also advantageously situated within 1 400 hectares earmarked land for development into a new mega logistics district in terms of Ekurhuleni’s regional spatial development framework.

Gauteng’s shape (80km wide along the gold reef, 20km wide at Midrand/Centurion and 40km wide at Pretoria) weighted against its built up environment and population densities, places the centre of Gauteng’s economic gravity just east of Rosebank, and only 25km north west of Distribution Junxion Port of Gauteng.

A logistics space custom-made for the future.

A portion of the Railway Park has capacity for a warehouse of 120 000m2 with a land gradient of only 2m over a distance of 1,2km. Considerable savings on earthworks for large-scale warehousing can be realised over the parks.

Distribution Junxion, Port of Gauteng, understands that warehousing needs to be agile, flexible and future-proofed to be able to meet the challenging needs of its customers. To this end, stands will only be proclaimed after input from the end user to allow for custom sizing and custom-design of modern, efficient warehouse facilities. All municipal bulk services are in hand.

The site will also be controlled with world-class security, from a comprehensive state- of-the-art 24-hour security system, with a private road network for the exclusive use of tenants and 24/7 access control and armed guarding via vehicles and perimeter patrolling.

Stimulating the local communities, and our economy.

With its prime location at the entry point (edge of the city), Distribution Junxion, Port of Gauteng, will be able to offer the surrounding communities access to unique job opportunities in the areas where people are living. This will result in decreased travel time, big savings on travel expenses, and the opportunity to work closer to their families and local communities. Social and economical upliftment through job creation and reduced transport strain will help to transform the surrounding communities, local businesses and play a vital role in South Africa’s economy.

About NT55 Investments

NT55 Investments is the investor in Distribution Junxion, Port of Gauteng. The company owns significant portions of this land including 107 hectares along the railway line, 80 hectares along the N3 highway, ± 20 hectares along Barry Marais Road and a further 60 hectares along Nederveen Road R103 (the old Durban/Johannesburg Road), earmarked for future development.

The intention is to facilitate the development of this property into the most significant in-land logistics and distribution hub in southern Africa. Proposed are three world- class, landscaped logistics parks, one Railway and one Highway Park with optimal traffic flows that include wide double-lane roads and generous turning circles.

NT55 Investments understands international logistics as a multifaceted and continuously evolving industry. That’s why it will deliver efficient and integrated logistics solutions and cost-effective distribution facilities to the highest levels of quality and security plus outstanding park aesthetics and optimal traffic flows.

Contact NT55 Investments on +27 (0)86 111 6855, [email protected] or go to portofgauteng.co.za to take advantage of this agile and well-timed Railway Park opportunity to unlock growth.

Sources:

(1) ‘Economic transformation, inclusive growth, and competitiveness: Towards an Economic Strategy for South Africa.’ Prepared by Economic Policy, National Treasury

(2) ‘Supporting Export Competitiveness through Port and Rail Network Reforms’ A Case Study of South Africa. Policy Research Working Paper 7532. Duncan Pieterse, Thomas Farole, Martin Odendaal, Andre Steenkamp. Trade and Competitiveness Global Practice Group, January 2016