The Department of Economic Development, Tourism and Environmental Affairs in KwaZulu-Natal have approved construction of the R3.5 billion Clairwood Logistics Park.

Construction will begin in earnest now that the amended Environmental Impact Report (EIR), received from the Capital Property Fund, has complied with stringent regulations.

The Park is to be built on the site of the former Clairwood Race Course, with the Fortress Income Fund planning to develop around 350 000 sqm2 of additional warehousing space.

“The Clairwood Logistics Park will not only meet growing demand for A-grade logistics and distribution facilities in the south of Durban but also improve the livelihoods of surrounding communities through job creation,” says Nico Prinsloo, Fortress Income Fund development manager.

The new facility is expected to create an estimated 18 900 jobs during the four-year construction period and more than 4 600 permanent jobs after completion in December 2020.

Both national and international businesses require a modern logistics facility in close proximity to both the Durban port and the proposed Dig-Out Port, which will minimise road traffic in congested areas to the north of the city as well as to inland areas like Hammarsdale.

The money invested in developing the site includes R110 million for extensive road and infrastructure upgrades surrounding the facility. Construction should be completed by the end of March 2016.