Khanya Cold Chain Business Plan — Facility and Location
The 4,200 m2 facility at Elandsfontein, its temperature zoning, dock configuration and why the Ekurhuleni location matters.
Facility and Location
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- Overview & contents
- i. Important Notice and Basis of Preparation
- 1. Executive Summary
- 2. The Business
- 3. Market Analysis
- 4. The Energy Strategy
- 5. Facility and Location
- 6. SWOT and Competitive Position
- 7. Commercial Plan
- 8. Operations
- 9. Financial Plan
- 10. Break-Even and Debt Service
- 11. Investment Analysis
- 12. Risk Analysis
- 13. Implementation Roadmap
- 14. Key Performance Indicators
- 15. Key Assumptions
- 16. Conclusion and Recommendation
- A. Appendix A: Consolidated Financial Summary
- B. Appendix B: Capital and Depreciation Schedules
- C. Appendix C: Funding and Debt Schedules
- D. Appendix D: Energy Model
- E. Appendix E: Risk Register
- F. Appendix F: Glossary
- 5.1 Location
- 5.2 Facility specification
- 5.3 Capital expenditure
5.1 Location
- Customer proximity. Ekurhuleni and the Johannesburg east corridor hold a dense concentration of food manufacturing, protein importers and food service distribution.
- Corridor access. Direct access to the N3 and N12, and the Durban corridor along which imported protein moves inland.
- Electrical capacity. Established industrial nodes have the notified maximum demand a cold store requires. This is a genuine constraint: a refrigeration plant of this size cannot simply be connected wherever a building is cheapest.
- Roof area. A 4 200 m² footprint provides the roof required for a 700 kWp array, which a multi-storey or constrained site would not.
Leasing rather than buying is deliberate. It reduces the funding requirement by the cost of the building, and it keeps the capital in plant that can in principle be relocated. It also creates the risk discussed in Section 12.1: a tenant who has installed R89 800 000 of fixed refrigeration into a leased shell has very little negotiating leverage at renewal. The lease must therefore run at least ten years with tenant renewal options, and that is a condition of proceeding, not a preference.
5.2 Facility specification
|
Parameter |
Specification |
Rationale |
|---|---|---|
|
Gross leased area |
4 200 m² |
Chambers, docks, staging, workshop and offices |
|
Frozen chambers |
2 600 positions at −25°C |
Split into multiple chambers so one can be shut without stopping the site |
|
Chilled chambers |
1 500 positions at 0–5°C |
Individually controlled for product-specific regimes |
|
Ambient and staging |
400 positions |
Cross-dock, consolidation and dry components |
|
Blast freezing |
40 tonnes per day |
Two tunnels; the highest-margin service line |
|
Racking |
Mobile racking in frozen chambers |
Raises stored pallets per cubic metre and therefore lowers energy per pallet |
|
Docks |
6 levellers with air locks and rapid doors |
Heat ingress at the dock is the largest avoidable refrigeration load |
|
Refrigerant |
Ammonia, variable-speed, zoned |
Efficiency and no global warming potential, against major hazard obligations |
|
Energy |
700 kWp solar, 600 kWh battery, 1.2 MVA standby |
See Section 4 |
5.3 Capital expenditure
|
Item |
Amount (R) |
% of total |
Depreciation |
|---|---|---|---|
|
Refrigeration plant, ammonia pack and evaporators |
27 600 000 |
30.7% |
10 years |
|
Insulated panelling, doors, floors and vapour barrier |
16 900 000 |
18.8% |
15 years |
|
Solar PV, 700 kWp with inverters |
9 100 000 |
10.1% |
12 years |
|
Racking, mobile racking and pallet inventory |
7 900 000 |
8.8% |
8 years |
|
Reefer fleet — 3 rigids at first close |
4 950 000 |
5.5% |
7 years |
|
Materials handling equipment: reach trucks, LPG and electric |
3 900 000 |
4.3% |
8 years |
|
Standby generation, 1.2 MVA, and electrical reticulation |
3 700 000 |
4.1% |
10 years |
|
Blast freezing tunnels |
3 200 000 |
3.6% |
10 years |
|
Battery energy storage, 600 kWh |
2 900 000 |
3.2% |
12 years |
|
Dock levellers, air locks and doors |
2 700 000 |
3.0% |
15 years |
|
Tenant installation, offices and amenities |
2 400 000 |
2.7% |
15 years |
|
Professional fees, commissioning and validation |
2 400 000 |
2.7% |
10 years |
|
WMS, monitoring, telematics and IT |
2 150 000 |
2.4% |
4 years |
|
Total capital expenditure |
89 800 000 |
100.0% |
R19 956 per pallet position |