Hammarsdale and Cato Ridge - Why?
Category Upper Highway General
Hammarsdale and Cato Ridge - WHY?
The face of Hammarsdale and Cato Ridge is changing with developments in the following three primary focus areas:-
- Cato Ridge - With developments focused around the proposed new Intermodal Hub/Dry Port and the ready availability of level zoned industrial land, plus some really good opportunities of properties, not yet zoned, but with great potential.
- Keystone Logistics Park - The home of a number of new large Distribution Centres Including, Mr Price, Ackermans and now PEP, which is the largest of all, at over 150 000m2 under roof.
- The older Industrial Area of Hammarsdale where many of the old textile properties have been redeveloped into Industrial Parks, some with prominent National tenants.
Location
Hammarsdale and Cato Ridge are situated in the gateway to Africa, on the N3 and only around 50km from the Port of Durban.
The location with close proximity to the N3 and the main rail line between Durban and Johannesburg, make it an ideal location for the Dry Port / Intermodal Hub as well as large Distribution Centre's and other businesses where logistics are important.
Infrastructure
Roads
The new Hammarsdale, interchange was recently completed, providing free flow access to Hammarsdale and Keystone Park. There are also plans to upgrade the MR 385 with additional lanes in both directions from the interchange to the Kelly Rd traffic lights. The MR 385 is the main ring road linking Hammarsdale and Cato Ridge to the South of the N3. The R103 links the two precincts to the North of the N3 providing various routes in the event of congestion on any one.
The Environmental Impact Assessment for the 'additional' interchange in Cato Ridge has been completed. Because of the 'small' distance between this proposed new interchange and the existing one, they will be linked with multi lane service roads on either side of the N3 and be treated as a single interchange. The new interchange will be located between the Engen One Stop and Bakers Transport and will provide easy access to the Proposed Intermodal Hub as well as a link to Eddie Hagan Rd as can be seen in the diagram.
Electricity
Electricity in this area is provided directly from Eskom which offers discounts of up to 25% compared to Ethekwini tariffs, depending, on the chosen tariff structure.
This has attracted a number of high electricity users, such as plastic pipe manufacturers, cold storage facilities, textile companies, plastic recyclers, injection moulders, packaging companies, etc.
There is understandably some delay in the provision of really large supplies for steel smelters and similar projects but Eskom have already constructed new sub-stations for the provision of additional supply and are planning further upgrades.
The old textile companies in Hammarsdale and an aluminum smelter in Cato Ridge had large supplies historically and this has benefitted a number of the existing companies. Further opportunities are still available.
Water
There is a good supply of potable water to most properties with water supplied from the eThekwini Municipality. A number of properties also have boreholes and there are dams on some of the properties to the South of the N3 in Cato Ridge.
Waste Water
The Hammarsdale Waste Water Treatment Works treats the sewage and wastewater from most of Hammarsdale and Keystone Park and there are plans for a significant upgrade of this facility. There are plans to install a sewage line from Cato Ridge so that it can also be used to cover that area.
Cato Ridge currently only has a small wastewater treatment works that is used for sewage from the central residential and commercial district. The abattoir also has a private sewage works but other properties rely on conservancy tanks and septic tanks until such time as the link line is constructed or the Cato Ridge Works is upgraded.
Rail
The main Durban / Johannesburg rail line runs through both Hammarsdale and Cato Ridge with rail stations and large shunting yards in both areas. There are also a number of Transnet and private sidings. One of the main attractions for the development of the Dry Port in Cato Ridge is a section of straight rail line over 1km long with large tracts of level land on either side, making it an ideal location. Environmental constraints have however hampered the plans so the focus of the Intermodal Hub has now moved to another siding to the North of the N3.
Dry Port / Intermodal Hub
The proposed Intermodal Hub and related facilities such as Truck Stop will help to streamline activities through the Port of Durban by moving the congestion out of the harbour and CBD. Proposals include moving a lot of the back of port activities, such as sorting and consolidating of containers, to Cato Ridge via a rail link. It is likely that it will involve a public private partnership and a number of large developers have been working on various proposals for the last two decades, but it appears as though the plans are now starting to materialise with the first phase expansion of the current trial facility to commence soon. The current facility is already being used by some of the large retailers and logistics companies operating in the area.
Cost Comparison in Relation to the balance of eThekwini
Electricity
Lower than eThekwini due to supply being direct from Eskom.
Water & Wastewater
Water and wastewater charges are at eThekwini tariffs. The cost of emptying conservancy tanks, with the related disposal charges can increase the cost where there is no sewage connection available.
Rates
The rates randage is the same as the rest of eThekwini but, as the property values are generally lower, the total rates payable are normally lower.
Labour
Labour rates are frequently lower than most of eThekwini due both to the large availability and the fact that some of the bargaining councils classify the area as decentralized.
Rent
Generally lower with rental rates in some of the older properties in Hammarsdale ranging from R40/m2. New developments generally have similar rentals to the balance of the city, due to the cost of development being similar.
Land Prices
Best value with zoned Industrial land ranging from as low as R250/m2 to R1 600/m2 for platformed and services land within the prime estates.
Property Availability and Developments
The older area of Hammarsdale comprises mainly the old textile related factories, a number of which have been converted to multi-tenanted industrial parks. Sizes in such range from around 300-8000m2 and the quality ranges significantly. Some have been upgraded and are now good quality units with good tenants and others are older and needing further attention. Vacancy rates have dropped significantly over recent years and are now in lower single figures.
Keystone Park dominates the newer part of Hammarsdale with some of top quality Distribution Centres including Mr Price, Ackermans and PEP and a total coverage of approx. 400 000m2.
There is still a large availability of vacant industrial land and other land that is not yet zoned but has good potential for such.
There are very few existing buildings available for sale or lease in Cato Ridge but a wide range of sizes in what is available. Sizes ranging from around 750m2 to as large as 35 000m2.
If one looks at the names of some of the older companies that have been operating in the area for many years, as well as the recent developments, it is clear that there are good reasons for considering the area for any Logistics or Industrial requirements.
Author: Robert McInerney
