MBDA TRANSFORMATION OF KARIEGA RAILWAY SIGNALS WHAT IS POSSIBLE FOR PRECINCT
The Mandela Bay Development Agency today welcomed media and other partners on site at the Kariega Railway Sheds, one of the Agency’s key urban renewal projects in this precinct. MBDA CEO, Mr Anele Qaba, says that once complete, the Kariega Railway Sheds will house a Small Business Incubation and Business Park, with flexible workspaces to support SMMEs and start-ups. This strategic move responds to economic challenges within the precinct, especially those experienced by young people and small business owners. “We are honouring Kariega’s heritage in our rehabilitation of the site, while shaping what comes next,” Qaba says. “Kariega is in a prime position. It is close to major industry and the Coega SEZ, which makes it the perfect place to build something that supports innovation, young people and small business.”
Background
In 2016, the Mandela Bay Development Agency’s mandate in Kariega was expanded to include management of the Nelson Mandela Bay Science and Technology Centre, and to unlock further development opportunities in the precinct. Under this mandate, in 2024 the MBDA committed nearly half of its capital budget towards completing the Railway Sheds upgrade.
The project mirrors the successful Tramways redevelopment in the Baakens Valley in Gqeberha, where public investment helped attract private sector growth.
The scope of works for construction focused on refurbishing the footprint and shell of the structure of the railway sheds, keeping to its originality as it is classified as a heritage building. Construction has preserved the original outer brickwork of this heritage building
It is the Mandela Bay Development Agency’s intention to develop a flexible, multiuse facility within the refurbished Railway Sheds.
The complex will accommodate multiple uses such as educational facilities, an events space, conference facilities, offices rentals, small business opportunities, and the extension of the existing Science and Technology Centre (situated next door, within the same complex).
Key Milestones:
Commencement Date: 24 April 2024
Site Handover Date: 26 April 2024
Anticipated Project Completion: June 2026
Construction figures:
Estimated construction value: R48 million
Percentage progress to date: 80%
Percentage project expenditure to date: 75%
Total number of EME/SMME appointments: Twenty (20), of which sixteen (16)
have completed their packages, four (4) commencing with work. (+- 33% SMME
expenditure)
Job creation: 80 jobs created since commencement of the project
Future prospects:
The Eastern Cape faces serious economic challenges. The technology and innovation sectors have been identified as especially challenging for young people and small businesses. However, it is also technology and innovation that hold the most potential for these groups. Kariega, which is home to Volkswagen South Africa and close to the Coega Special Economic Zone, is thus in a strategic location.
The MBDA’s major redevelopment of the historic Railway Sheds in Kariega is aimed at turning the heritage site into a functional, innovative space that supports small business, education and technological innovation.
The refurbished Railway Sheds will form part of a proposed Science and Technology
Park, designed to:
– Promote innovation and tech development
– Support startups and small businesses
– Create jobs and build skills
– Connect universities, industry, and government
The MBDA has commissioned a full feasibility study to guide the development of the Science and Technology Park. The study will focus on profiling Kariega’s economic and industrial strengths,
benchmarking global best practices in tech and innovation support, and identify key strategic partners within the tech and innovation ecosystem, including industry, academia, and government and national partners.
The study will shape the business model, financial plan, and operational framework for the Science and Technology Park to ensure its sustainability and impact.