Newlyn Group, a Durban-headquartered private logistics property developer, is nearing completion of the first warehouse at its R640 million ($39 million) logistics park in Gqeberha, Eastern Cape, as the Durban-based developer prepares to expand capacity at a site designed to serve freight operators, retailers and manufacturers. The 150,000-square-meter development is expected to accommodate businesses seeking access to major transport routes and the Port of Gqeberha.

First warehouse nears handover

The company said in a project update issued Oct. 15, 2026, that the first phase, known as Phase 1A, is scheduled for practical completion by December. The facility includes a 10,000-square-meter warehouse, a 10,000-square-meter heavy-duty yard and between 200 and 300 square meters of office space.

Construction of Phase 1B, which will add another 10,000-square-meter warehouse and a matching yard, is scheduled to begin in October. Subsequent phases have been approved for warehouses measuring 12,000, 7,000 and 3,000 square meters, allowing the developer to adjust capacity to tenant requirements as the project advances.

Built around freight access

Located on Cape Road, also known as the R102, the industrially zoned site is about 5 kilometers from the N2 highway and a 20-minute drive from the Port of Gqeberha. Its location positions the park to serve fast-moving consumer goods distributors, courier companies, clean logistics operators and light manufacturers.

Newlyn is drawing on three decades of experience developing supply chain and multimodal freight infrastructure across South Africa. The warehouses feature 200-millimeter FM2 power-floated concrete floors designed for uniform loads of 10 to 12 tonnes, with saw-cut joints aligned to racking positions to reduce the risk of floor damage.

A 24-by-24-meter column grid provides open floor space, while a 10.5-meter clearance to the structural truss allows racking systems up to seven levels high. The specifications are intended to help tenants maximize storage capacity without necessarily investing in specialized narrow-aisle materials-handling equipment.

Infrastructure designed for tenants

Viresh Persad, Newlyn Group’s chief development officer, said the company had refined its designs over time by addressing operational challenges that tenants might otherwise encounter after occupying a facility. The approach incorporates features upfront to reduce the need for costly modifications once warehouse operations begin.

“Good logistics infrastructure is not necessarily about specifying the biggest or most expensive solution,” Persad said. He added that the objective is to identify where higher specifications improve operational performance and where flexibility can help tenants avoid unnecessary costs.

External yards match warehouse floor space on a one-to-one basis. They use 80-millimeter interlocking concrete pavers rated at 35 to 40 megapascals for heavy vehicles and reach-stackers, with reinforced concrete at high-wear turning points. The buildings also feature corrosion-treated structural steel, clip-locked roof sheeting and support for rooftop solar photovoltaic installations.

Safety and utility resilience

The park’s fire protection system includes dual water tanks and pumps designed to supply two facilities simultaneously for up to two hours. Other provisions include extra-high-hazard sprinklers, aspirating smoke detection and smoke curtains, alongside infrastructure intended to strengthen operational resilience.

Smart meters will monitor electricity and water consumption, while municipal connections will be supported by on-site storage tanks and a dedicated borehole. Engineered stormwater management addresses local floodplain conditions. Security measures include artificial intelligence-enabled cameras, electric perimeter fencing and individual gatehouses with tenant-level access controls.

Persad said the initial phase had helped establish the teams, local relationships and development processes needed to accelerate subsequent construction as tenant requirements emerge. The company aims to maintain its operational specifications while adding warehouse capacity in response to demand.