International logistics company Schnellecke yesterday signed an agreement with the Nelson Mandela Metropolitan Municipality - incorporating Port Elizabeth, Uitenhage and Despatch - to base a significant part of its African operation in the Nelson Mandela Bay Logistics Park in Uitenhage.

Park MD Lance Schultz also announced that four further tenants had committed to the R394-million development, located adjacent to Volkswagen's facility and in close proximity to GM and Ford. These agreements are due to be signed within the next few weeks.

Construction on the park began during April with the installation of internal services, including sewerage, water, electricity and the building itself.

The first phase of construction entails the establishment of perimeter fencing, the main gatehouse, 8700m2 of buildings, internal and link roads and several mini-factories. The first phase will be complete by September 1, 2005, when anchor tenant Schnellecke, takes occupation.

The project will create around 4 650 jobs during construction over a period of three years. Once complete 160 permanent positions will be created in park management, security, maintenance, medical, and catering.

Project management at the park is being undertaken by the Automotive Industry Development Centre.

Meanwhile, Schnellecke, which employs over 10 000 people globally and 1 200 in South Africa, sees its establishment in the new park as supportive of the fast-expanding automotive industry as well as other manufacturing enterprises.

MD Christian Thormeyer said the company aimed to expand its service to a broader range of manufacturers and benefit from efficiencies offered by the Park.

"A logistic or supplier park is essential for the industry to improve on supply chain stability, especially between the T1 and T2 suppliers and the original equipment manufactures. It will also provide needed infrastructure to support the industries growth trend, he said.