Coega will help SA auto industry stay competitive

ED RICHARDSON
REDUCING INVENTORY in the supply chain and cutting logistics costs are vital to the success of the automotive industry, and the Coega Industrial Development Zone’s strategic advantages can play a crucial role, says Coega automotive specialist Christopher Mashigo.
Dave Coffee, president of the National Association of Automotive Component Manufacturers of South Africa (Naacam), told the recent South African Automotive Conference (SAAC2005) that South Africa had a “geographic disadvantage” when it came to being globally competitive.
“The Coega IDZ is well positioned to meet this challenge,” said Mashigo. “It is served by both the ports of Ngqura and Port Elizabeth and its direct links into the national road and rail networks do just that,” says Mashigo.
Another challenge raised by Coffee was the relatively low volumes in South Africa which made it an unattractive destination for international investors. Suppliers had to develop both local and international markets in order to attract technology partners and new investment, he said.
“There are two original equipment manufacturers (OEMs) – Volkswagen and General Motors South Africa - within a 20 minute drive of the Coega automotive cluster. This provides a local customer base, while the ports and existing logistics infrastructure make it possible to supply the rest of the world on a just in time basis,” says Mashigo.
Another competitive advantage identified by speakers is having a modern infrastructure, with costs being kept to a minimum through shared services.
“Coega has the best world infrastructure in place, which is exactly what attracts investors and tenants,” Coega enterprise development executive manager Rustum Mohamed told delegates.
According to Mohamed, there are a number of investors and tenants who are at an advanced stage of negotiations for facilities in the Coega Auto Cluster. Names were sensitive due to the competitive nature of the industry.
A shortage of skills was also highlighted by Coffee as a major challenge facing the local industry. “Here again Coega has plans and systems in place to assist the industry. We have a database of skills available in the metro, as well as good working relationships with local tertiary institutions and training colleges in order to meet the needs of tenants in the Coega IDZ,” said Mashigo.