Johannesburg - JSE-listed Tongaat Hulett has said that it was going to invest R50 billion in the next 15 years in the development of Sibaya Coastal Precinct in a move that would boost the local economy and create jobs.
Tongaat Hulett’s chief executive, Peter Staude, said last Friday that the investment had been backed by the KwaZulu-Natal provincial government.
Staude said the Sibaya Coastal Precinct was among the most sought-after, developable land in the country.
“As one of the fastest growing regions in the country, the Precinct will act as the catalyst in unlocking the potential of significant regional development, infrastructure, job creation and it will provide a solid anchor to emerging Durban aerotropolis,” said Staude.
The targeted land is situated between natural boundaries of the Ohlanga and uMdloti river estuaries - about 25km north of Durban - and is over 1 000 hectares. It stretches from the national N2 highway to the Indian Ocean and incorporates seven nodes of prime beach, forest, river and hilltop land.
Staude said about 40 percent of the hectares would be developed with the 60 percent left as green space.
KwaZulu-Natal MEC for economic development, tourism and environmental affairs, Sihle Zikalala, said the investment was part of the government’s commitment to create an environment in which businesses in the province could prosper.
Zikalala sad the province was fully behind Tongaat Hulett.
“The investment by the private sector is critical in job creation because we know that 30 000 permanent jobs will be created and over 270 000 temporary construction jobs throughout the duration of the project,” said Zikalala.
“We have the Dube Trade Port and the Richards Bay Industrial Development Zone which are very important in driving the economy in the province. We don’t doubt that this development by Tongaat Hulett will play an important role in driving the economy of the province.”
The construction of service infrastructure started in node one in August, with node five to follow soon.
Once completed the development will give rise to 9 000 residential dwellings and 500 000m² of commercial bulk including schools, universities retirement developments, corporate, retail, and hospitality.
The company also reported that it expected its operating profit to increase by 5.8 percent to R1.35 billion for the six months to end September, from R1.28bn during the corresponding period last year. It said headline earnings were expected to be about R631 million, compared with the R607m earned in the previous year, an increase of about 4 percent.
The results for the six months include an improvement in sugar revenue and operating profit.
The company will release the half-year results next week.
Tongaat Hulett shares rose 0.03 percent on Friday to close at R115.68.
BUSINESS REPORT