Shree Property breaks ground on a new Distribution Facility at Dube TradePort

Shree Property Holding has committed R460 million to investment in distribution warehousing for logistics tenants, taking up 23 Dube TradeZone sites for its massive 60 000 square metre undertaking.

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Durban-based property development company and family-owned Shree Property Holdings has broken ground on a warehouse and distribution facility at the multi-million rand mega industrial integrated site in KwaZulu-Natal, the Dube TradePort.

The company has committed R460 million investment towards development of a distribution warehousing for logistics tenants, taking up 23 Dube TradeZone sites for its massive 60 000 square metre undertaking, as well as an additional 15 000 square metre facility.

Construction follows a deal brokered in February this year for a multi-phased development approach.

Indications are that an initial 12 000 square metre first phase is to be constructed, taking about six months, with future phases following soon thereafter.

Dube TradePort promises to be dominant and has attracted private sector investment totalling R560 million to date, which may be partly attributed to the boldness of Durban-based property development company, Shree Property Holdings for its decision to become the precinct's first private investor.

Speaking at the function held at the project’s Office to mark construction of the warehousing facility, adjacent to the airport and cargo terminal, MEC for Economic Development and Tourism, Mr Michael Mabuyakhulu, said company's investment decision was a clear indicator to the business community that Dube TradePort is a great place in which to invest and in which to conduct business.

"The Group's facilities will have a significant impact on the economy and the creation of employment. Construction is envisaged to stimulate the establishment of 987 new jobs. These jobs come with the added benefit of vital up-skilling and knowledge transfer. When these facilities become operational, an additional 750 employment opportunities will come on-stream," said Mr Mabuyakhulu.

He added that the construction of these new facilities would have "an impressive" R164,7 million impact on GDP. Of this amount, some 40,7% could be attributed to on-site construction activities.

Mr Mabuyakhulu indicated that of the 47 original sites offered in the first phase of Dube TradeZone's development, only two did not yet have any agreements in place.

Bringing private sector investment to Dube TradePort has been cited as a priority by Ms Saxen van Coller, recently appointed Chief Executive Officer of Dube TradePort Corporation.

She said: "Our objective is to ensure that Dube TradePort becomes the engine which drives the economic growth of our province."

She added that the emergence of Aerotropolis:KZN was a reality and was being given momentum by new, increased and continuing investment by the private sector.

Mr Pran Shree, Chief Executive Officer of Shree Property Holdings said of the company's investment in Dube TradePort: “As a South African logistics company operating internationally, we use sea, air and land to connect with the world and Dube TradePort is ideally situated to meet our requirements. It offers easy access to the state-of-the-art King Shaka International  Airport and two harbours – Durban and Richard’s Bay. There are also plans for a new rail connection to the airport and further north to Ballito.”

“The tenants we are talking to, in terms of taking up space, are the world’s top 10 logistics users, so we want to charter our own aircraft to fly small loads of 150 tons of fruit to China and return with clothing. By having a base at Dube TradePort gives our organisation the intermodal superiority,” he added.

Dube TradePort is located 30km north of central Durban and home to King Shaka International Airport.