Regional development of Saldanha Bay region, South Africa: The role of Saldanha Steel

Abstract

Since 1970 the Saldanha Bay region on the West Coast of the Western Cape Province has been high on South Africa’s national development agenda. The region has been struggling for years to meet the preconditions for economic take-off. In this analysis the Saldanha Bay region is positioned in the contexts of global competition among steel-producing countries, South Africa’s national development plan and the Greater Cape Town functional region. The aim is to explain the nature and extent of the relationship between a single secondary industry - ArcelorMittal Saldanha - and the economic development of the larger Saldanha region. Following a brief introduction and background to the Saldanha Bay region, the evolutionary economic geography (EEG) approach and the role of institutions in the development of regions are reviewed. Saldanha Steel (ArcelorMittal), the pioneer industrial firm, is analysed by using a mixed-method approached, where semi-structured interviews and a questionnaire survey are the main research instruments. The contribution of Saldanha Steel to regional development is explored.

The co-evolution of Saldanha Bay (town and hinterland) and its Port

“…For more than a century the development of Saldanha Bay Port and it's hinterland were considered regionally significant (Zwemmer and Van't Hoff, 1983) but despite a number of plans, policy mechanisms and financial incentives having been initiated over the last three decades the anticipated growth of Saldanha town and its hinterland have not materialised to the degree anticipated (Bek et al, 2004;Saldanha Bay Municipality, 2009;Welman and Ferreira, 2014). The present state of regional development in the Saldanha Bay region reflects strong historical and government-led influences.…”

“…Further highlights in the development of the infrastructural base of the region (Table 1) were the three-kilometre long artificial breakwater linking Marcus Island to the mainland (1973); the Sishen-Saldanha railway line (1974) (which linked the port to iron ore mines 1000 km inland); and the extension and deepening of the port (1976). These developments not only laid the foundation for industrial development in the region but also created industrial-path dependence (Welman and Ferreira, 2014). By 1979 (Figure 1c) the town and port had expanded spatially.…”

“…Saldanha Bay Port fits into the last two categories. Concomitant with the trans-shipment and break-of-bulk functions (crude oil and iron ore) and the associated activities in the industrial areas adjacent to this port are negative externalities (noise, pollution and visual blight) that can deter further economic diversification and development (Welman and Ferreira, 2014).…”

Analysing the changes in the bathymetry of Saldanha Bay between the years 1977 and 2021

“…The South African government has recognised the economic potential of its ocean areas and has made large strides towards improving the way in which its ocean resources are managed (Welman and Ferreira, 2014). The goal of this blue economy 1 , as it was coined, is to make better use of the country's water resources, specifically the oceans, to create jobs and alleviate poverty in the country (South African Government News Agency, 2013;Welman and Ferreira, 2016).…”