Dube TradePort Newsletter Q2 2023

Hamish Erskine

From the CEO’s Desk:  

As we start second quarter of the year, I am greatly encouraged by the progress we’ve made, thus far, in delivering against some of the objectives which have been set and I am confident that come this time next year we will be able to report that we have delivered on the expectations of all our stakeholders. 

While the economic climate we are operating in, remains tough for the foreseeable future, we are confident that the work that we and our partners are doing will serve as a solid foundation, for our long-term growth ensuring that we will be able to capitalise on the market demand for prime real estate going forward. 

On the commercial property side of things, we have commenced the development of a seven-storey mixed-use building in our Dube City precinct, which will stand adjacent to our head office, bringing to market some 12 000 m² of office and retail bulk that will serve as the nucleus for research and development, the incubation of SMME ventures among its more conventional uses.

We have also seen positive interest from the market on the second phase of our light industrial precinct in Dube TradeZone 2 as Durban continues to face supply issues post the May floods. We are expecting the first manufacturing facility in TradeZone to open its doors later this year once the installed equipment has been commissioned. In addition, plans to build two DTPC owned warehouses of 14 000 m² and 25 000 m² respectively, are well underway to respond to the pent-up demand for well-located, appropriately sized warehousing space.

In our agricultural precinct we are also nearing the completion of all the bulk infrastructure installations within the second phase of the project. This will set the stage for the development of a number of agricultural and renewable energy projects to support our investors onsite.

The task of economic recovery gives rise to the possibilities of building back better, and of being intentional about the transformation of our economic landscape. In 2016, the Board of Dube TradePort Corporation approved a Broad-Based Black Economic Empowerment Strategy, which sought to expand the opportunities available within this organisation to more people by promoting meaningful economic participation of previously marginalized groups, which we are making progress in delivering on. I am pleased to report that in the last financial year, over 90% of our procurement spend went to designated groups and 800 jobs created, ensuring inclusive economic participation in all facets of our business.

I remain confident that by working together we all be able to successfully tackle the challenges we face. I urge you as our tenants and stakeholders to keep in touch with our teams and let us work together in solving any of the issues you may encounter while doing business in our precinct or using our services.

Hamish Erskine

Chief Executive Officer

Two New Airlines Start Scheduled Flights Into KwaZulu-Natal 

KwaZulu-Natal has gained two new air services with the introduction of ProFlight Zambia and Eswatini Air during April and May, respectively. Air services are of great importance to KwaZulu-Natal as they enable connectivity, providing convenient access to the provinces for trade and tourism. 

Moreover, the introduction of direct flights between Durban, Lusaka and Durban, Manzini are expected to have an impact on the overall air connectivity in the region, enhancing the cities accessibility whilst positioning Durban as a key hub for regional trade.

According to the World Bank, over 60% of exports from Eswatini come to South Africa, and over 80% of Eswatini’s imports come from South Africa; direct routes like this help enable KwaZulu-Natal based enterprises to gain a larger share of this market.

Mr Siboniso Duma the MEC for Economic Development, Tourism and Environmental Affairs and the leader of Government Business in KwaZulu-Natal said, “We are pleased to announce the launch of our new route between Eswatini and Durban. This route not only enhances the tourism potential between the two destinations but also strengthens trade relations. 

‘Eswatini is one of the key regional tourism markets and shares strong historical and cultural ties with the province of KwaZulu-Natal. Pre-pandemic, tourist arrivals from Eswatini averaged 290 000 per annum and in 2022 tourist arrivals demonstrated a strong recovery of 89%. This presents an exciting opportunity for Eswatini Air to grow as a partner in accelerating the recovery of tourism between the two destinations.” 

On the other hand, travel between Zambia and South Africa increased by 38%, while South Africa’s exports to Zambia grew by R 1,6 billion, between 2021 and 2022, making Zambia to be amongst South Africa’s key trading partners within Southern Africa. 

The mayor of EThekwini, Cllr. Mxolisi Kaunda expressed his excitement for ProFlight’s return. “We are thrilled to have ProFlight flying back to Durban. As the tourism industry is gradually recovering, the resumption of these air services facilitates greater leisure and business travel into Durban. Growing intra-Africa travel is also a key component of our broader strategy to ensure competitiveness, which is further enabled by the addition of this air connectivity.

Expanding air connectivity is an effective mechanism to strengthen regional integration and open up avenues for increased trade opportunities, enabling businesses in the region to explore new markets and expand their operations through aviation. 

 

AIR CARGO IN DURBAN IS RECOVERING

Durban’s air cargo business has recovered by some 56% owing to the return of both international and domestic airlines which has seen a 70% rebound in network traffic at King Shaka International Airport. This has led to Dube TradePort Cargo Terminal processing 13146 tonnes of cargo from April 2022 to February 2023, showing an increase of 30% from the previous year.  

“We have always maintained that once we have the airfreight capacity, freight forwarders and shippers will choose to fly cargo directly into Durban, this positive movement reaffirms our understanding of the KZN air cargo market.” Notes Mr Ricardo Isaac, Senior Manager: Cargo Development and Operations Dube TradePort Cargo Terminal

‘If you look at the historical trends, between 2015 and 2020, Dube TradePort Cargo Terminal managed to capture over 60% share of the KwaZulu-Natal air cargo market effectively doubling cargo volumes, being processed through Durban, which was a direct result of increasing airfreight capacity with the introduction of new passenger services.” 

Re-establishing more of Durban’s domestic and regional air services remains a priority for both cargo and passenger volumes to grow.

“When Comair exited the market, it left a capacity gap of around ~38% for King Shaka International Airport. Fortunately, operators like FlySafair, Airlink, CemAir and Lift have come in to fill the void on the domestic routes adding much-needed capacity.” – concluded Mr Isaac

CYBERATTACKS ARE NOW INEVITABLE

Cyberattack statistics show that South Africa is the eighth most attacked country in the world. Cybercrime, in general, has become a daily occurrence globally, with an attack taking place every 11 seconds – therefore as a business owner, you have to recognise that if you have not yet experienced an attack it’s inevitable that your business will be affected. To prepare you need to develop a technologically smart cybersecurity modus operandi for your business. The first layer of that plan needs to be a resilient backup and disaster recovery solution. 

Dube iConnect is a fully licensed ICASA service provider offering secure cloud-hosted backup and Disaster Recovery Services, with 24/7 support and 99% uptime. Dube iConnect has on-site data centres with an advanced virtualisation environment ensuring that you are able to retrieve your data and continue operating seamlessly even if you are affected by a cyberattack. 

Steve Johnson, Commercial Manger Dube iConnect said “As Dube iConnect we have a reseller network, who makes it easy for clients to access Backup as a Service (BaaS) or Disaster Recovery as a Service (DRaaS) without the costs and complexity of managing a second infrastructure.’

“It’s as easy as selecting a service provider from our global network of partners and pointing backup or replication jobs to the cloud with a few simple clicks. Data is fully encrypted at every step, and backups are as safe and confidential as they would be in a dedicated off-site repository so that data of all types is completely protected and easy to recover.” 

Dube iConnect has a long-standing partnership with Veeam in delivering backup and disaster recovery, Veeam’s Backup & Replication system has places saves three copies of the data, with two on different storage media and one, which is held offsite for added protection. The data is locked and there are zero errors across all copies of the stored data.  Our protection strategy enables entities to instantly recover without copying data from one place to another. 

Dube TradePort Recognised for Driving Transformation

Dube TradePort recently was recognised by the KwaZulu-Natal government for its overall outstanding contribution to transformation in the province through the B-BBEE Compliance Awards 2021/22. This comes after the organisation’s transformation initiatives over the last year saw it improve its B-BBEE scorecard to a Level 2 B-BBEE contributor. The B-BBEE Awards presented Dube TradePort Corporation with three awards for the most Improved B-BBEE Scorecard, Outstanding B-BBEE Scorecard and Overall Winner B-BBEE Compliance.

Dube TradePort Corporation CEO Mr Hamish Erskine said “As an organisation, we continue to focus our efforts on driving transformation through preferential procurement, enterprise development, employment equity initiatives and skills development through all our daily operations. Over the last seven years, Dube TradePort Corporation has implemented policies and programmes that have seen our B-BBEE scorecard move from a Level 7 to a Level 2, demonstrating our commitment to promoting meaningful economic participation of previously marginalized groups in all facets of our business.” 

South Africa’s journey towards transformation and economic prosperity has been deeply intertwined with the implementation of Broad-Based Black Economic Empowerment. Designed to address historical injustices and create a more inclusive society, B-BBEE has emerged as a critical tool in reshaping South Africa’s economic landscape. By promoting equal opportunities and increasing the participation of previously marginalized communities, B-BBEE has played a pivotal role in fostering sustainable development, social cohesion, and long-term prosperity for the nation.

FREIGHT FORWARDERS ARE AFFORDED A HIGHLY SECURE AND EFFICIENT OPERATIONS FACILITY

Dube TradePort Special Economic Zone has created a highly secure and efficient operations facility, specifically designed and strategically located to house freight forwarding companies, so enabling the vital streamlining and simplification of functions for a time-sensitive business environment.  This opens the door to an exciting prospect for freight forwarding and logistics enterprises to position themselves for exceptional business efficiency. 

Located at the very core of the exciting Dube TradePort Special Economic Zone development, north of Durban’s city centre, the purpose-built Dube TradeHouse is ideally situated to offer easy access to the adjacent airfreight terminal at King Shaka International Airport, Durban’s seaport and major national roadways connecting Durban’s burgeoning northern corridor and the strategically important link to South Africa’s economic hub, Gauteng. 

Current operators located in the Dube TradeHouse service local and international business clients by collecting, processing and dispatching cargo through this key resource. Its integrated warehousing and office space is geared to meet the express and specialised requirements of freight forwarders and shippers within a highly secure precinct, with the critical additional benefits of continuously stable power, on-site ITC services and a time-saving ULD conveyor bridge connecting each unit directly with the airside Dube Cargo Terminal, within Durban’s King Shaka International Airport (DUR). 

To learn more about Dube TradePort’s remaining leasing opportunities, please contact our Investment team: This email address is being protected from spambots. You need JavaScript enabled to view it.

Dube TradePort Continues To Drive Sustainability 

Dube TradePort has been leading the charge towards achieving sustainability in the region. Since the completion of its headquarters 29° South in 2011, which was aptly described as “Africa’s first urban green precinct”, the organisation has implemented several green initiatives that promote environmental responsibility while creating economic opportunities for investors. 

Within the 29° South building Dube TradePort implemented a rainwater harvesting system, which is used for flushing and landscaping. The process is also implemented throughout the precinct, where larger systems collect and store rainwater, reducing the reliance on municipal water sources and promoting water conservation, where the harvested water is even used for crop irrigation.

One of the key sustainability initiatives at Dube TradePort is the installation of solar panels. Dube TradePort has multiple solar arrays which collectively generate approximately 1 Megawatt of electricity, helping tenants within the zone to reduce their dependence on fossil fuels and cutting the carbon emissions associated with their operations. The solar plants have also provided job opportunities for locals during their construction and maintenance phases.

Dube TradePort’s commitment to sustainability is not limited to its infrastructure, it also prioritizes sustainable practices in its operations, such as waste management, and property development. The organisation has implemented a waste management system that promotes recycling and the responsible disposal of waste. This reduces the environmental impact of waste disposal while creating job opportunities for locals in the recycling industry.

Over the last 10 years, Dube TradePort is regarded as a responsible developer who prioritizes the environment due to its sustainability efforts. These initiatives not only promote sustainability but also create economic opportunities within the region. Dube TradePort continues to be committed to sustainability in alignment with the global movement towards sustainable development.