Sammar Logistics partners with Fortress to power its growth
Sammar Logistics has occupied its new 37,965m² warehouse on Pocket 2A at Clairwood Logistics Park in Kwa-Zulu Natal. This 15-year lease agreement is underpinned by Sasol South Africa, which identified Clairwood as the ideal location for consolidating its warehousing in the Durban South basin. This is one of the largest logistics deals to be concluded in the region.
The building was built to Sasol specifications, including DM1 floors, 16m in height to eaves, and good circulation. The yard was explicitly designed for the movement and storage of containers. This fully racked facility can accommodate 35,000 pallet spots with provision for future expansion. Because of how Sasol stores its products, the height of the building is essential. The height of this warehouse allows Sammar to rack higher, giving the team more pallet spots. A foam-based fire suppression system was specifically designed to comply with the nature of the stored products in the warehouse.
Denise Sodalay, the CFO of Sammar Logistics, said, “The power of partnerships is demonstrated through the launch of our new facility. We are exceptionally proud of our 30-year working relationship as Sasol’s third-party logistics provider.”
David Mokomela, the Senior Vice President (of Sasol Chemicals Africa), commented, “We have an excellent relationship with Sammar Logistics; their service levels are exceptional, and this new bespoke facility designed by Fortress adheres to Sasol’s high global standards of compliance.”
Jason Cooper, Head of Property Development for Fortress Logistics, said, “We are proud of our continued relationship with Sammar and Sasol. The warehouse was designed to operate more efficiently, optimising the utilisation of their space. Sammar Logistics were the first tenant at Clairwood five years ago. Seeing their growth – they have doubled the size of their space since the start of our relationship – has been amazing to witness first-hand.”
Bruce Collins, Head of Asset Management at Fortress, explains why space at the Park is in high demand: “Clairwood Logistics Park is only 11km from the Durban port with easy access to the M4 and N2. It will comprise 300,000m² of A-grade warehousing and a container yard upon completion. Comprehensive security measures are in place at this gated site: 24-hour alarm systems, video monitoring and reliable security patrols.”
Approximately 60% of all containerised imports and exports go through the Durban harbour, so the Park’s proximity to the port makes it a prized location. The strategic advantage of Clairwood Logistics Park being close to the port has fuelled continued high demand for space there. “We have seen that the delays experienced in 2023 have been resolved and there have been substantial improvements in turnaround times,” commented Collins.
The South African logistics industry is expected to continue its upward trajectory in 2024. The Fortress Logistics portfolio’s low vacancy rate of 1.2% (as of 31 December 2023) is a result of effective asset recycling, well-executed management initiatives in the standing portfolio, and healthy demand for well-located, high-quality logistics developments.