Economic Study of Solar Energy On Petrol Pump Specialist Studies Economic Study

Economic Impact Study for a Proposed Fuel Service Station on the corner of Kirk and Hawkins Streets, Harding,
KwaZulu-Natal
September 2012
Report prepared by:
Report No. 10/01 Draft 01 Date 13th Sept 2012 Author AMM Checked GAM Status Approved
KEYWORDS: Harding, fuel, petrol, diesel, station, turnover, convenience store
Page 1 of 20
Contents
Introduction ....................................................................................................................................................... 3 Section 1: Broader Context ............................................................................................................................... 4 1.1 1.2 1.3 Situational Analysis............................................................................................................................ 4 Development Context ....................................................................................................................... 4 The Impact of the Shopping Centre and other Developments on Demand...................................... 5
Section 2: Economic Analysis ............................................................................................................................ 5 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.8.1 2.8.2 2.9 Economic Impact of the Proposed Service Station ........................................................................... 5 Background to the Multiplier Analysis .............................................................................................. 6 The Construction Phase ..................................................................................................................... 7 The Operational Phase .................................................................................................................... 10 Impact on Gross Domestic Product ................................................................................................. 12 Impact on Employment and Labour Remuneration ........................................................................ 13 Summary of General Impacts .......................................................................................................... 15 The Impact on Local Competitors................................................................................................... 15 Service station market ........................................................................................................... 16 Estimated negative impacts on competitor stations.............................................................. 18 Mitigation ....................................................................................................................................... 19
Page 2 of 20
Introduction
This economic impact study relates to the proposal to build a fuel service station and retail convenience store at the intersection of Kirk and Hawkins Streets, Harding, KwaZulu-Natal. The aim of the study is to put the proposed development into a socio-economic context by assessing the impact the development is likely to have on residents living in the area, on the local economy, and on the retail fuel and convenience product markets. Developments do not happen in isolation and rarely is the impact of a given
development confined directly to the business concerned. It is therefore important to assess the impact that the proposed development will have in the wider area of influence as a whole. In so doing, this study weighs up the positive and negative impacts which the research indicates that the proposed fuel service station and convenience store are likely to have.
Positive impacts of the development of a fuel service station and convenience store at this location are likely to include the injection of spending into the local economy, the creation of jobs and the value of increased convenience and efficiency. These likely impacts are examined by investigating three key
economic indicators namely, gross domestic product (GDP), employee remuneration and job creation. Possible negative impacts are the adverse effect the proposed development might have on existing businesses in the area that offer services similar to those that the proposed business plans to offer. These businesses may, as a result of increased competition for customers, suffer a loss of custom.
This impact study finds that the construction and operation of a service station in Harding will have a positive net impact on the local economy, and surrounding communities. While negative impacts on local competitors are judged likely to occur, these will not be of such a magnitude as to cause job losses or close any existing businesses, whilst increased competition in the immediate area will produce better and more efficient services and will increase consumer welfare. Overall the net economic impacts of the proposed development are found to be positive for Harding and surrounding areas.
Page 3 of 20
Section 1: Broader Context

1.1 Situational Analysis
The proposed petrol filling station and convenience store are situated at the entrance to the town of Harding, on the outskirts of the commercial centre alongside a proposed shopping centre development.
The town has three existing fuel service stations within a 5km radius of the site. Apart from these three stations the next closest station is 17km away at Staffords Post.
1.2
Development Context
The site of the proposed service station is planned off the main route that enters and exits Harding but on a road that does provide an alternative link between the town with the N2 national route. This is indicated on the above map. The proposed station is situated close to the current commercial area but outside of the Page 4 of 20
current developed area. The site is currently used as by a plant hire and sale enterprise. Across from the site are sports fields and between the site and the existing commercial activities in Harding is where the shopping centre development is proposed to be located.
1.3
The Impact of the Shopping Centre and other Developments on Demand
The Harding area is currently is changing. Currently there are plans for two new shopping centres on opposite sides of the existing commercial centre of Harding. Demand for retail space is increasing and new shopping centres are proposed for alongside the proposed fuel service station and also on the other side of town near to the existing Engen fuel service station.
Section 2: Economic Analysis

2.1 Economic Impact of the Proposed Service Station
Assessing the impact that the proposed fuel service station and convenience store will have on the economy of the town of Harding in southern KwaZulu-Natal and, ultimately, on the broader economy must, necessarily, take into cognisance both the impact on the local community and the impact on the existing fuel service station market in the surrounding area. A holistic picture of the impact of any development must consider the net value that the proposed development adds to an economy. For example, in order to assess the impact that the proposed fuel service station and convenience store will have on employment in the local economy, one must take into account both the jobs expected to be created as well as jobs likely to be lost, if any. For example, if the new service station is responsible for employing four new service station attendants, however two of these employees have simply transferred employment from competitor stations, the overall net impact will be an increase in employment of only two people for the local economy.
The following analysis will be divided into three sections, the first of which will measure the impact that the proposed development will have on the economy at a macro-level based on sector specific economic multipliers. The second section will deal with the impact that the proposed development will have on the fuel and food retail market, particularly as regards to how it will affect competitors within the area. The final section will summarise the total net impact that the proposed fuel service station is likely to have on the local and national economy.
Page 5 of 20
2.2
Background to the Multiplier Analysis
Multiplier analysis recognises that spending generated by a new development has knock-on effects on the economy that are not fully expressed in simply estimating a direct or initial impact. As such the research traces the expected route of each rand spent, through the successive rounds of spending by individuals, and measures the total cumulative impact of the proposed new development on the economy. Impacts are measured in terms of impact on gross domestic product, on average employment and on labour remuneration.
The following sections consider the economic impacts of building the proposed fuel service station and convenience store in Harding. These impacts are considered separately for the construction phase (onceoff impacts) and the operational phase (recurring impacts). These impacts have been calculated using sectoral multipliers generated by an input-output model for the South African economy. The multiplier analysis identifies the likely impact that the specific development under question will have on key economic variables, namely, gross domestic product (GDP), labour remuneration and average employment. A distinction is made between the contribution of the specific sector (initial impact); the impact of the first round suppliers (together these two form the so-called direct impact); the impact of all other indirect suppliers and, finally, the induced consumption of households. First round suppliers are those industries that deliver goods and services directly to the proposed fuel service station and convenience store under consideration in this study, whilst the indirect suppliers are those industries that, on their part, deliver goods and services to the first round suppliers.
For example, construction of the proposed fuel service station and convenience store has an initial impact on the economy through its direct effects on the construction industry. After opening, purchases by the construction industry from, for example, the electricity sector, are regarded as first round impacts of the construction industry on the economy. The backward linkage of the electricity sector, with for instance the coal mining industry and the linkage of the coal industry, on its own turn, with its suppliers of intermediate goods and services, are regarded as part of the indirect impact of the construction industry. Furthermore the construction of the new service station also stimulates the economy through the induced effects of private household consumption resulting from salaries and wages paid by the proposed fuel service station and convenience store. In this regard, construction of the proposed fuel service station and convenience store results in payments for labour services that ultimately increase household income and hence increase the level of private household consumption expenditure. Household income is treated as being spent within the system and thereby generating further economic activity ultimately resulting in larger multiplier effects throughout the entire economy. Hence overall, the impact on economic development goes far Page 6 of 20
beyond a simply analysis of the initial impacts. The research needs to take into account the direct, indirect and induced effects of a project in order to get a true picture of the ultimate effect on economic development within the region.
The multiplier model, furthermore, takes account of leakages from the system which dampen the effect of the economic multipliers (these include import leakages as well as savings). All economic impact values are stated in current (2012) prices (unless otherwise stated) excluding value added tax (VAT) and are not adjusted for future inflation.
2.3
The Construction Phase
Given that the construction phase of the proposed fuel service station and convenience store leads to a once-off injection into the economy whilst the operational phase results in an on-going contribution to GDP, it is preferable to deal with these two phases separately.
The construction costs used in this analysis are those supplied by the developer for the proposed development of a Total Oil fuel service station (including a convenience store) on the preferred site. These costs have been allocated to the relevant economic sectors in which the spending will accrue and are listed in table 2.1.
Table 2.1: Breakdown of Construction Costs

Sector/Category Civil Engineering Building & Construction Business Services Government Machinery & Equipment Includes: External works, landscaping, road construction Building work, canopy, landscaping/fencing, signage Developer profits, professional fees Services (electrical connection fee) Shop equipment, computer equipment, pump & tank installation
Gross domestic product (GDP) measures the value of goods and services in market prices, produced in the domestic economy in one year. It is a measure of the value added to an economy. The proposed fuel service station and convenience store is projected to provide an input stimulus into the local economy of R5,5 million during the construction phase of the operation (see below). The direct impact on the economy of this construction spending is R2,87 million. Through the resultant multiplier effects on the economy this produces an overall increase in GDP of R6,55 million. Research estimates that the South African economy will experience a growth in total GDP of 6,55 million due to the construction of the proposed fuel service Page 7 of 20
station and convenience store and the extent to which this impact is felt within the Harding area will depend on the extent to which the construction goods and labourers are sourced from the surrounding communities. This is not known at this stage and cannot therefore be estimated.
Table 2.2: Annual Impact on GDP

Spend Category Civil engineering Building/construction Business services Government Machinery and equipment Total Input R614,156 R2,257,258 R321,251 R266,449 Direct impact R322,284 R1,116,309 R238,024 R214,859 Indirect effect R159,943 R674,888 R55,287 R28,085 R460,660 R1,378,864 Induced effect R240,460 R896,216 R108,636 R201,475 R851,497 R2,298,285 Total impact R722,687 R2,687,413 R401,948 R444,419 R2,294,420 R6,550,886
R2,040,887 R982,262 R5,500,000 R2,873,737
Table 2.3 shows the impact on employment from the construction phase of the proposed fuel service station and convenience store in terms of the number of jobs created.
Table 2.3: Impact on Employment

Direct impact (c=a+b) 2.8 5.25 0.95 1.15 5.5 15.7 Induced effect (e) 1.1 4.05 0.5 0.9 3.85 10.4 Total impact (f=c+d+e) 4.55 12.25 1.65 2.2 11.05 31.7
Spending categories Civil engineering Building/construction Business services Government Machinery and equipment Total
Indirect effect (d) 0.65 2.95 0.2 0.1 1.75 5.65
Table 2.3 reveals that the direct impact of the construction phase of the proposed fuel service station and convenience store on the economy is to create 15.7 jobs (measured in full-time equivalents - FTEs). These 15.7 jobs represent the direct FTE jobs created in the construction industry as a result of the proposed development. These would include the labourers and developers on site directly involved in the
construction as well as the first round of construction suppliers. The fact that an average of 15.7 FTE jobs are created as an initial impact is to say that 15.7 full-time positions are created for the year during the period of the construction stage of the project. These positions however, may be filled at various times by Page 8 of 20
numerous people on a part time base. Confusion may arise when numerous construction workers fill part time jobs. A job completed by three different people in four month shifts, would be equivalent to one full time job. Thus the number of people actually working in the construction phase of a development may be significantly larger than the number of full-time equivalent jobs predicted by the model. This discrepancy is purely definitional.
The multiplier analysis identifies that more than just 15.7 FTE jobs will be created within the economy from the construction of the proposed fuel service station and convenience store as it takes into account the wider effects on job creation from increased demand on the suppliers of the first round suppliers as well as the induced effects from spending by households receiving income from the construction project. In this regard, the total impact on employment within the economy will be the creation of 31.7 FTE jobs.
It is likely that of the people employed in the construction phase, 75% will be unskilled and 25% will be skilled labour. The fact that there exists in the surrounding communities a large pool of unskilled, unemployed labour, suggests that the majority of this 75% may be made up of local residents. Though the skilled labour may be sourced from further afield, there is enough unemployed skilled labour living in surrounding communities to meet the construction needs of the development. Thus it can be assumed that a large portion of the direct FTE jobs created (15.7) in the construction phase will be filled by members of the local community.
Employment is very important for the development of the economy as it represents a direct injection of income into local households. This is especially important for unskilled and semi-skilled labourers that are generally found to be supporting much poorer households. Indeed employment creation is arguably the most effective form of long-term poverty relief. Table 2.4 shows the impact that the construction of the proposed service station will have on labour remuneration in the economy. Total labour remuneration accruing to households in the South African economy due to the construction phase of the proposed service station is R2.8 million. Of this figure, R1.45 million flows to labour directly employed in constructing the service station and R570 000 million flows to construction suppliers. The rest of the labour
remuneration accounted for in the multiplier analysis flows to suppliers of the suppliers or to businesses which benefit from the indirect or induced effects of higher spending from local households.
Page 9 of 20
Table 2.4 Labour Remuneration

Labour Remuneration Input Direct impact Indirect effect Induced effect Total impact
Civil engineering
R 614,156
R 146,905
R 65,108
R 88,385
R 300,399
Building construction Business services Government Machinery and equipment Total
R 2,257,258 R 321,251 R 266,449
R 510,101 R 73,388 R 165,734
R 280,091 R 22,396 R 11,905
R 329,419 R 39,931 R 74,055
R 1,119,611 R 135,716 R 251,695
R 2,040,887 R 5,500,000
R 563,566 R 1,459,695
R 187,197 R 566,698
R 312,982 R 844,773
R 1,063,745 R 2,871,166
In summary, the impact of the construction phase of the proposed service station in Harding is to contribute R6,55 million to Gross Domestic Product, to create 31,7 FTE jobs and to generate labour remuneration to the value of R2,85 million. Significant proportions of these impacts can be expected to accrue to neighbouring communities, positively impacting on the unemployment levels in Harding and surrounding area.
2.4
The Operational Phase
Measuring the impact of the daily operations of a business is naturally very different to measuring the impact of the construction phase of a development. As such, one uses different inputs and different economic multipliers. The proposed service stations operational activities, primarily involves selling petrol and diesel products to motorists, though, it also includes the sale of convenience items through the convenience store. Service station activities are accordingly defined in the national standard industrial classification (SIC) codes as wholesale and retail activity. However, the key distinction between the construction phase and operational phase is that while the construction phase represents a once off injection into the local economy, the operational phase provides an ongoing injection into yearly GDP.
Page 10 of 20
The following tables provide an analysis of projected fuel sales for the proposed service station in Harding, based on traffic the business plan. A full traffic impact assessment was not conducted so those figures are not available to deduce turnover for the station.
Table 2.5: Projected fuel sales per quarter
Vehicle stops per year (a)
Petrol sales (litres) (b )= (a)80%25 l
Diesel sales (litres)(c)=(a) 20%25 l
Turnover from petrol sales
Turnover from diesel sales
Total
Year 1: Fuel Year 2: Fuel Year 3: Fuel
134,400 151,200 168,000
2,688,000 3,024,000 3,360,000
672,000 756,000 840,000
R 31,180,800 R 35,078,400 R 38,976,000
R 7,190,400 R 38,371,200 R 8,089,200 R 43,167,600 R 8,988,000 R 47,964,000
Note: A 80/20 petrol diesel split is assumed - price of petrol: R11.60; Price of diesel: R10.70
Table2.6 estimates the volume of fuel sales per year and the turnover derived from the sale of fuel at the proposed fuel service station. An average fill of 25 litres is estimated for this assessment and is used in conjunction with the annual fuel volumes to calculate stops. The petrol - diesel split is based on the
assumption that petrol represents 80% of total fuel to be sold at the proposed site. The proposed fuel service station is expected to attract more vehicles in years 2 and 3 as it becomes more firmly established with consumers changing their preferences in favour of the new station and as the economy in the region grows. The number of vehicle stops at the proposed fuel service station is expected to increase by 13% in Year 2 and by a further 11% in Year 3 as the station reaches maturity. The fuel price is assumed to remain constant at R11.60 per litre for petrol (constant 2011 prices). The retail price of diesel is unregulated, so an average price of R10.70 per litre is used for this estimation. Although holding the fuel prices constant is somewhat unrealistic, it is near impossible to predict accurately how the price of fuel will change in the near future. Thus it is more prudent to use the current fuel price as a broad marker of the actual price in the future. Bearing these necessary assumptions in mind, annual turnover from fuel sales for the proposed service station is predicted to be R38m per annum for year 1. Annual increases (in line with Total Oils expectations) in vehicle stops of 13% and 11% respectively will increase turnover from fuel to R38m per annum for Year 1 and R48m per annum for Year 3.
Page 11 of 20
Table 2.6: Total Turnover of development

Vehicle stops per year Year 1: 2013 Year 2: 2014 Year 3: 2015 134400 151200 168000 Tips R 268,800 R 302,400 R 336,000 Shop turnover R 4,800,000 R 5,184,000 R 5,443,200 Turnover from fuel sales R 38,371,200 R 43,167,600 R 47,964,000 Total turnover R 43,440,000 R 48,654,000 R 53,743,200
Notes: The average tip per vehicle is estimated at R2.00 Shop turnover is assumed to start at R200,000 per month
Sales resulting from the proposed service station are not limited to fuel only. The new station will contain a branded convenience store which will also generate significant revenue. Shop turnover is expected to amount to R4.8 million per annum for Year 1, which is set to increase annually in accordance with the sale of fuel. Tips received by petrol attendants must also be taken into account when determining the total impact of the service stations operational activities on the broader community. This is not because of the magnitude of the spending on tips but rather from their direct impact on the grassroots development of local households in the area. It has been estimated that as much as 50% of monthly earnings of petrol attendants can be comprised of tips. If we assume an average tip of R2 per vehicle, one can see that petrol attendants would be injecting as much as R268,000 into local households in Year 1 from tips alone. This figure will also increase as the number of vehicles which stop at the proposed service station increase over the first three years. Adding the turnover from fuel sales; shop sales and tips to petrol attendants, yields a figure for total turnover, as shown in column 6 of Table 2.6. It is estimated that the proposed service station will generate R43m of total turnover in Year 1. This figure is projected to rise to nearly R54m in Year 3 and subsequently stabilise from that point (aside from inflation adjustments).
2.5
Impact on Gross Domestic Product
The combined sum of retail activity listed above (namely fuel sales, shop sales and tips) are entered as inputs into the multiplier model to determine the full impact that the proposed service station will have on GDP. In the first year of operation the service station will add R60m to annual GDP, see Table 2.7. This figure will grow steadily up until Year 3 from which time it is estimated that the proposed service station will add at least R74m year-on-year to GDP.
Page 12 of 20
Table 2.7: Annual Impact on GDP

Direct impact (c=a+b) R 32,622,297 R 36,537,874 R 40,359,729 R 109,519,899 Induced effect (e) R 20,032,079 R 22,436,482 R 24,783,334 R 67,251,895 Total impact (f=c+d+e) R 60,024,880 R 67,229,524 R 74,261,720 R 201,516,124
GDP Year 1 Year 2 Year 3 Total
Input R 43,440,000 R 48,654,000 R 53,743,200 R 145,837,200
Indirect effect (d) R 7,370,504 R 8,255,168 R 9,118,658 R 24,744,330
2.6
Impact on Employment and Labour Remuneration
Due to the nature of the work for which employees at service stations are employed, the multiplier analysis is not necessarily the best method to use for describing the impact a service stations operational activities has on employment and labour remuneration in the economy. This is the case because the sale of fuel is not naturally a labour intensive industry. A single petrol attendant at the proposed Harding site would, on average, facilitate the sale of about R3000-R4000 worth of fuel on an average day. This is substantially higher than the average sales that an employee in other sectors of the wholesale and retail industry would facilitate. The multiplier analysis thus overestimates the number of jobs created by the operation of a new fuel service station. In the instance of this proposed fuel service station and convenience store, the multiplier model estimates that 70 initial FTE jobs would be created in the first year of operation. This figure of 70 contradicts the number of jobs that is typically created from a fuel service station and convenience store, and which Total Oil anticipate creating, namely, 32 FTE jobs. The reason for this disparity has been explained above.
The multiplier model can, however, be used to more accurately predict the number of jobs that would be created on the wider economy if the proposed service station were to be established. This is done by using the initial impact figure of 32 jobs and working backwards to estimate the initial input that would be required to create 32 initial jobs. 21 of these are pump attendants and reflect workers employed on a 24 hour seven days a week shift scenario. This input figure is, in turn, used to calculate the number of jobs created in the wider economy (the indirect and induced effects). In this regard, the multiplier model estimates that 74 jobs would be created in total within the economy as a result of the operational activities of the proposed service station in the first year. This higher figure thus takes into account job creation from the initial impact (34 jobs), suppliers of the service station (8 jobs), and suppliers of the service stations suppliers (7 jobs) as well as jobs created from the induced effect of households spending their incomes (24 jobs). Page 13 of 20
Projected Number of Jobs (a) Pump attendants Cashiers Shop/food outlet staff Merchandiser Admin clerk Manager Tips Totals 21 3 5 2 2 1 34
Minimum Monthly Salary of Employee current prices (b)* R 2,646.00 R 2,662.00 R 2,496.00 R 2,497.00 R 3,154.00 R 14,300.00
Total Annual Remuneration of Employees (a x b x 12 months) R666,792 R95,832 R149,760 R59,928 R75,696 R171,600 R268,000 R1,487,608
Table 2.8 above shows that if the proposed service station were to remunerate their employees at the minimum wage specified for each occupation, the initial impact will be to increase labour remuneration in the economy by R1,487,608. Tips, as expected, constitute a significant amount (in excess of 29%) of the take home pay of petrol attendants. A large proportion of total remuneration will go to employees living in the surrounding communities and will in turn generate more labour remuneration as they spend their wages in the community, resulting in multiplier effects for the local economy. Once again the multiplier model can be used to work backwards from this initial remuneration figure to derive the total impact on the national economy in terms of labour remuneration. In this regard South African households will receive R3,366,363,75 per year in labour remuneration, where the initial impact accounts for R1487,608 (as calculated above), remuneration to suppliers account for R465,185, remuneration to suppliers of suppliers for R402,603 and the induced effect of indirect spending by households account for R1,010,967.
The yearly impact on the economy of having an additional service station operating in Harding will be to create 74 FTE jobs (these positions will largely be filled by persons from the local community), provide remuneration amounting to R3.3 million, and raise national GDP by an average of R74 million. All these figures represent an ongoing contribution to GDP which should grow yearly in line with the development of the national economy.
Page 14 of 20
2.7
Summary of General Impacts

Construction Phase Initial Impact Year 1 Year 2 Year 3 Year 1 Year 2 Year 3 15.7 0 0 31.7 0 0 R2,873,737 Total Multiplier Impact R6,550,886 Operational Phase Initial Impact R 32,622,297 R 36,537,874 R 40,359,729 34 34 34 Total Multiplier Impact R 60,024,880 R 67,229,524 R 74,261,720 74 74 74 Total Total Multiplier Impact R 66,575,766 R 67,229,524 R 74,261,720 105.7 74 74
Table 2.9: Summary of Annual Impact
Table 2.9 provides a summary of the economic impact of the proposed fuel service station and convenience store during the first three years of operation, taking into account the contributions of both the construction and operational phases. In terms of the developments contribution to GDP, the multiplier model estimates R66 million will be contributed towards GDP in the first year of operation (and including the construction phase), increasing to R67 million in year 2 and then reaching maturity at R74 million in year 3. In terms of job creation, the proposed fuel service station and convenience store will create some 105 FTE jobs in year 1 followed by 74 FTE jobs in years 2 and 3. Employee remuneration, of which a noteworthy proportion would be injected into local households within Harding area, is estimated at roughly R3,3 million in year 1 increasing as the station turnover grows in years 2 and 3. Although year 1 provides a higher contribution to the national economy than the following two years given the injection from the once-off construction phase, the operational phase represents a potentially indefinite yearly contribution to GDP from the service station which will only grow in size with the development of the national economy.
2.8
Employment - jobs
GDP - rands
The Impact on Local Competitors
The above multiplier analysis may overestimate the actual impact of the development of the proposed service station on the economy by not taking into account the displacement impact on neighbouring service stations. Whilst any new business always adds to GDP and local development it must be borne in mind that at least part of this new business will inevitably simply be a transfer from one or other competitor to the new business. To the extent that a new business simply benefits from the transfer of an Page 15 of 20
existing transaction rather than initiating or creating a new demand, will be the extent to which changes in GDP may be overstated. Arising from the establishment of a new business, the retail fuel industry, in particular, typically reflects a high degree of business transferral as compared to a genuine initiation of new transactions. Nonetheless, steady annual growth in the demand for fuel means that more service stations constantly need to be established to cater for growing demand. Furthermore, consumers will always benefit from higher degrees of competition as this leads to greater customer convenience, greater economic efficiency as well as improved access to fuel.
2.8.1
Service station market
As Table 2.10, below, indicates, there 3 nearby service stations (traditionally defined as being within a 3km radius of the proposed site).
Table 2.10 Nearest fuel service stations in the surrounding area

Station Name Caltex Engen Coastals Total OIl Address Murchison/Hawkins Murchison Holman Street Staffords Post - N2/R56 Straight line distance 590m 720m 900m 13.6km Distance by road 590m 990m 1300m 16.7km
Page 16 of 20
Caltex
Engen
Coastals
Page 17 of 20
Proximity, however, is not the only factor in determining the degree to which an existing station may be negatively impacted upon by a new service station development. Other factors include whether the existing stations lie on the same travel routes as the proposed station; the age and condition of the existing stations; the facilities available; and the level of customer loyalty enjoyed by the existing stations. As such estimating the total impact that the development of the proposed service station in Harding and surrounds will have on existing stations, is not a straightforward task. We have included in our analysis, the existing Total Oil service station 16km away at the intersection of the R56 provincial road and the N2 national route even though it is outside the traditional impact assessment range. This is because it is located on the N2 and the proposed new Total Oil fuel service station will be visible and easily accessible from the N2. This station is very basic and rundown as the landowner believes the site will, at some undetermined stage in the future, be purchased by the South African National Roads Agency limited (SANRAL) for an overpass. If this happens the owner would intend to redevelop on a new site close the intersection and upgrade the existing fuel service station. Currently the station mainly provides cheap diesel to a trucking company also owned by the station owners. Therefore the proposed Total Oil Filling Station will not be a direct competitor with this station. Within the town of Harding it is important to consider at this point is the fact that the three existing service stations in the area were built before the shopping centre was planned and their business cases were based on traffic coming into Harding to shop within the existing commercial area.
2.8.2
Estimated negative impacts on competitor stations
The following table reviews the impact that the proposed service station is likely to have upon service stations within an approximate 3km radius. Conventionally, service stations outside of the 3km radius are excluded on the basis that a transferral of business from these stations would be cancelled out by the efficiency gains related to the use of a more conveniently located service station
Table 2.11 Findings of interviews with the nearest competitor service stations
Subjective loss estimates by fuel service station owners Fuel Service Station Caltex Engen Coastals Volume 250000 l 30000l Nil Staff retrenchment 15 jobs 4 jobs Nil Projected loss by GMA Volume 125000 l 50000 l 5000 l Staff retrenchment 8 jobs 5 jobs Nil
Page 18 of 20
Columns 2 and 3 in Table 2.11 reflect the subjective view of the respective service station owners with regard to business loss and anticipated retrenchments. These views were expressed in interviews with the project team. The estimates made by the respective service station owners suggest that a total of 280 000 litres of fuel volume per month will be lost to the new station. Considering that the planned fuel volumes at the proposed station are 280 000 litres per month in its first year of operation and some of this demand will come from shopping centre users and N2 national route travellers which would otherwise not have stopped in Harding these loss estimates by existing fuel service station management must be considered to be over-estimates. The Engen and Caltex are on the main road through Harding linking to the N2 national route and thus will still be more convenient for most users. Both stations stated that less than 1% of customers were N2 national route users. Most clientele were locals. Furthermore, not all the litreage done at the proposed station will be captured from the 3 nearest fuel service stations. GMA have therefore
provided a more realistic estimation of the expected loss of fuel sale volumes at the existing fuel service stations. These are reflected in columns 4 and in Table 2.11, above. Based on the sales figures provided by the fuel station owners it is projected that the Caltex will lose 31%, the Engen 11% and the Coastals Coop6% of fuel sales to the new station. This is a combined loss of 19%. This is fairly low and the Caltex who which will be hardest hit will still be able to sell approximately 300 000 litres of fuel per month. As the economy of Harding grows and increased investment occurs (such as the new shopping centres) these losses will be absorbed by increased sales due to economic growth.
Employment losses anticipated by the respective service station owners have also been scaled down by the GMA project team in line with the revised expected loss of fuel sale volumes to more accurately reflect the actual anticipated impact of the development of the proposed service station on employment numbers. It is expected that initially the new filling station will have a negative impact on existing service stations to the extent that 13 employees may lose their jobs. However as continued economic growth in the municipality and town is expected, these job losses are unlikely to be permanent. Additionally the 13 employees anticipated to be retrenched in the short term need to be balanced against the 34 jobs expected to be created at the new station. A gain of at least 21 jobs is expected to result from the development of the
proposed new Total Oil fuel service station at the intersection of Kirk and Hawkins Streets in Harding.
2.9
Mitigation
It is the view of the study team that none of the foreseeable negative impacts as identified in this study are of such a magnitude as to warrant any mitigation measures.
Page 19 of 20
END OF REPORT
Page 20 of 20
PROPOSED REZONING: PORTION 3 OF ERF 101 HARDING, UMUZIWABANTU MUNICIPALITY ______________________________________________________________________________________________________________________
TOWN PLANNING REPORT PART OF PORTION 3 OF ERF 101 HARDING
- MOTIVATION 1. THE SITE
1.1
Characteristics
Extent:
The total extent of Portion 3 is 8 093m, of which 3000m
will be rezoned and developed for the purposes of a Service Station. Shape: 55m X 55m Topography: The topography of the land is flat, with no distinctive topographical characteristics. Environmental: The property has been transformed over many years, being located at the main entrance to Harding, the site has no environmental constraints. Its proposed conversion for service station Rectangular-shaped, with measurements of approximately
purposes will therefore have no adverse environmental impact whatsoever. Access: At present the property obtains access from Hawkins Street.
1.2.
Zoning: 1.2.1. Current Zoning: General Commercial The pertinent controls applicable to the present zoning are as follows: -
Table 2
Minimum Lot Area (m) Coverage (%) Maximum Height (Storeys) Floor Area Ratio Permitted Free Entry Uses Commercial Workshop 450 (composite building 1 800) 80 3 1,0
__________________________________________________________________________________________________________ PLANKONSULT Town and Regional Planners: MARCH 2012 Page 1
Conservation Area Laundry Office Building Place of Public Amusement Public Office Residential Building (except on ground floor) Restaurant Shop Warehouse
1.2.2. Proposed Rezoning to Garage The pertinent controls being applied for are: Table 3
Minimum Lot Area (m) Coverage (%) Maximum Height (Storeys) Floor Area Ratio Permitted Free Entry Uses Conservation Area Garage Service Station
N.B. A number of Special Consent uses are possible, but are strictly controlled by the Special Consent process itself.
450 60 2 0,4
2.
PROPOSED DEVELOPMENT The Applicants intentions are to develop a Service Station that will serve both the patrons of the new shopping complex to be developed on Portion 1 of Erf 101 Harding and the motorists, taxis and trucks entering and leaving Harding via the main entrance of the Town, namely Hawkins Street.
3.
NEED AND DESIRABILITY
3.1
Need in the Public Interest
From a Sound Town Planning Point of View
The Harding CBD is characterised by many facets including its high density core centred around Livingstone Street, Field Street, Shepstone Street and Hawkins Street. These four streets form the traffic corridor within which the CBD functions. A limited number of commercial
activities have developed outside this corridor, but in essence the core of the CBD is located along and within the boundaries of these four streets. One of the pertinent deviations from the above statement is the rezoning of Erf 101 Harding for General Commercial purposes. This commercial
zoning provides a link between the aforementioned core CBD and the industrial zoned land at the main entrance to the Town. Forming part of the proposed commercial development on Erf 101 is the Service Station applied for in this instance.
Placing a service station adjoining a 10 000m shopping centre makes town planning sense.
Availability of Commercial Space in Harding
A land use survey of the core area of the Harding CBD undertaken during March 2011, clearly indicates that no vacant sites exist within the core area of the CBD. Some vacant buildings do exist, but those few are in serious disrepair. The development of the application site adjoining a formal
commercial usage will make a valuable contribution to the amenity of the Harding Town and its main road entrance and will also contribute to alleviating traffic and parking pressures within the higher density areas of the CBD.
3.2
Desirability in the Public Interest
Access and accessibility
The present access to the site is via Hawkins Street. Due to the site not having any topographical constraints, all vehicles are able to enter the site from Hawkins Street at a level entrance.
The locality of the site along the main entrance to Harding and within close proximity to the national road, classifies the subject property as having very good accessibility.
Traffic Impact
Traffic volumes along Hawkins Streets are relatively low compared to the capacity of the road. The traffic impact assessment undertaken by Aurecon Traffic Engineers have concluded that the traffic volumes to be generated by the service station will have a negligible impact on the existing levels of service on the road network within the study area and no road improvements are required as a direct result of the proposed petrol filling station.
Impact on Surrounding Properties
The proposed service station will be located within a commercially orientated area, situated adjacent to the proposed shopping complex and south of the proposed industrial area. Opposite Hawkins Street is the sports grounds of the Town, which are mostly utilised on Saturdays.
Suitability of the Site
An earlier description of the topography of the site clearly indicated that it is uniquely level, and without any topographical or environmental constraints whatsoever.
In addition, the property is ideally located to the commercial uses within the Harding CBD and the proposed development of Remainder of Erf 101 and is therefore considered eminently suited to the proposed usage allowed within the Garage zoning.
3.3
General Need and Desirability
South African National Economy
Motivating a local planning need realistically and holistically requires that it also be assessed against general trends in the national economy. International economic activities during 2008 have had a significant medium term impact on the South African economy and also on the property development market. Economists do however indicate that the South African economy had entered an upswing during early 2010 in the approach to the Soccer World Cup and is presently experiencing a slow, but constant growth pattern towards the middle of the decade. Reductions in the interest rates, have also contributed to a slight improvement in the property market in general.
An important development principle indicates that engaging in the process of establishment of development rights during a downswing or slow growth period of the economy constitutes sensible planning, which enables the landowner to commence immediately with development as the economy improves.
Local Economic Growth
It is confidently submitted that this application offers a perfect opportunity for innovative and resourceful planning. Indications in the property
development sector are that the unprecedented growth in the residential sector within Southern KwaZulu-Natal during the period of 2000 to 2006 has subsided and has shifted to the commercial/retail/office sector, albeit
limited.
This is a common trend in any healthy economy, and is
underscored by the fact that economists nationally and locally have predicted a growth period in the office and commercial sectors. The
present international economic recession obviously had a negative impact on this prediction, however it is commonly accepted that the local economy has reached its low point and has reached a slow growth period.
Harding has benefitted from the slow upsurge of the economy, clearly visible from the level of present commercial activity in the Town. The report prepared by Dr Warrington also supports this statement.
Benefits of the Proposed Rezoning of Portion 3 of Erf 101 Harding The proposed change of zone and use to Garage will have the following benefits:
The addition of a valuable facility to the largest shopping facility to have been developed in Harding.
The provision of such commercial facility in a totally unpretentious and unobtrusive manner, and without disturbing the amenity of the area.
The enhancement of the sustainability of a currently vibrant and successful commercial component of Harding.
The enhancement of an area characterised by a variety of land uses. The provision of an aesthetically acceptable commercial facility, complimentary to a new shopping complex and ensuring easy access to such facility.
4.
SUMMARY
The motivational aspects in support of this application are summarised as follows:
The subject property is bordered by the main entrance road to the Harding CBD.
The Harding CBD has experienced extensive growth during the last 15 years. A new commercial development with ancillary facilities will provide a welcome stimulus to the CBD.
A detailed survey of the CBD properties has revealed that no vacant land zoned for commercial purposes is available within the core CBD.
The subject property will enjoy good accessibility via Hawkins Street, which road forms part of the main traffic corridor of the CBD and the main entrance to the Town.
The proposed development of the subject property should not have a detrimental effect on the present traffic flow patterns within the CBD and adjoining areas.
The site has no environmental or topographical constraints and is eminently suited to the proposed commercial development.
In spite of the present international recession economists are positive that the national economy has reached its low and is on the up and sensible developers should utilise this time of limited growth to establish development rights.
The proposed development will have numerous benefits, including job creation, both temporary and permanent, provision of a complimentary facility to a new shopping complex and contribution to the amenity of Harding, to name but a few.
PLANKONSULT
MARCH 2012
TRAFFIC IMPACT STATEMENT FOR A PROPOSED PETROL FILLING STATION IN HARDING
LOCATED IN THE SOUTH WEST QUADRANT OF THE KIRK STREET AND HAWKINS STREET INTERSECTION
Report No: 5567 /107371/01
AUGUST 2011
PREPARED BY: AURECON SA (PTY) LTD P O Box 932 PINETOWN 3600 CONTACT PERSON: Mr Rishaal Sahadew Tel no: +27 (071) 6877 131
PREPARED FOR: Twin Cities Trading 392 (Pty) Ltd P O Box 1593 Hillcrest 3650 CONTACT PERSON: Kerry Quinn Tel no: +27 (031) 767 5896
Document Verification Sheet
Aurecon SA (Pty) Ltd
Project Title Proposed Petrol Filling Station in Harding Document Title File Reference Version Date (dd/mm/yy) Filename Description Harding Petrol Filling Station_TIS_RS
Project Number 107371/Harding PFS
Traffic Impact Statement for a Proposed Petrol Filling Station in Harding
TIS for a Proposed Petrol Filling Station in Harding 1 Draft Prepared by Reviewed by D Kellock Approved M van Tonder
st
18/08/2011 Name Signature R Sahadew
Version
Date (dd/mm/yy)
Filename Description Prepared by Name Signature Reviewed by Approved
Version
Date (dd/mm/yy)
Version
Date (dd/mm/yy)
Project No. 107371 August 2011
ii
Table of Contents
LIST OF ACRONYMS .................................................................................................. III 1. 2. 3.
3.1 3.2 3.3 3.4 3.5 3.6 3.7
INTRODUCTION .................................................................................................... 1 LOCATION OF THE PETROL FILLING STATION ................................................ 1 EXISTING TRAFFIC CONDITIONS ....................................................................... 1
Hawkins Street .......................................................................................................................... 1 Livingstone Street ...................................................................................................................... 3 Hancock Street .......................................................................................................................... 3 Kirk Street ................................................................................................................................. 3 Traffic Counts ............................................................................................................................ 3 Existing Pedestrian Activity ....................................................................................................... 5 Public Transport Facilities .......................................................................................................... 5
4. 5.
TRAFFIC GENERATION OF THE PROPOSED PETROL FILLING STATION ...... 5 FINDINGS OF THE TIA FOR THE PROPOSED SHOPPING CENTRE ADJACENT THE PROPOSED PETROL FILLING STATION ................................ 5 IMPACT OF THE TRAFFIC GENERATED BY THE PROPOSED PETROL FILLING STATION ................................................................................................ 6 CONCLUSIONS AND RECOMMENDATIONS ...................................................... 6 BIBLIOGRAPHY .................................................................................................... 7
6.
7. 8.
iii
LIST OF ACRONYMS KZN DOT LOS TIA TIS GLA Veh/h KwaZulu-Natal Department of Transport Level of Service Traffic Impact Assessment Traffic Impact Statement Gross Leasable Area Vehicles per Hour
1.
INTRODUCTION
Amber Dawn requested Aurecon to prepare a Traffic Impact Statement for a proposed petrol filling station in the southwest quadrant of the Kirk Street and Hawkins Street intersection in the Harding Central Business District (CBD). The purpose of this report is to assess the traffic impact of the proposed development on the existing road network. The report examines the existing peak hour traffic conditions, the impact of the peak hour traffic generated by the development on the road network and lastly, makes recommendations for any improvements required to the road network in order to convey the additional traffic generated by the proposed petrol filling station. 2. LOCATION OF THE PETROL FILLING STATION
The proposed petrol filling station will be located on the vacant portion of land at the southwest quadrant of the Kirk Street and Hawkins Street intersection, as shown in Figure 1. Hawkins Street is a Provincial Main Road (MR 59) that traverses along the eastern periphery of the site while Hancock Street forms the western boundary of the site. Livingstone Street and Kirk Street traverse along the southern and northern peripheries respectively. A sports complex is located adjacent to the eastern side of the proposed development. Commercial properties and an informal parking lot are positioned to the south of the proposed petrol filling station. A few residential properties are located to the west of the site. The area adjacent to the north boundary of the development is undeveloped. A new shopping centre is proposed on the vacant land adjacent to the southern periphery of the site. The shopping centre will generate a substantial volume of traffic in the immediate vicinity of the proposed petrol filling station. As such, it is prudent to consider the traffic impact of the shopping centre in this traffic study. 3. EXISTING TRAFFIC CONDITIONS
3.1
Hawkins Street
Hawkins Street is a two way Provincial Road with a single lane in each direction. Hawkins Street forms a direct link between the Harding CBD and the N2 National Road. The road width of Hawkins Street is approximately 8m with no formal sidewalks or shoulders. Several parked vehicles were observed on the soft shoulders on either side of Hawkins Street. A fair volume of pedestrians were observed walking on the verges and roadway of this road. Hawkins Street is a blacktop road that is in an extremely poor condition as it is beleaguered with potholes and ravelling.
3.2
Livingstone Street
Livingstone Street is a two-lane municipal road with one lane in each direction. Speed limit signs were not present along this road but no vehicle speeds in excess of 60km/h were observed along this road. Livingstone Street intersects with Hawkins Street at an unsignalised intersection. The lane width of this road is approximately 3.5m with formal sidewalks present on both sides of the road. Vehicles park informally on both sides of this road. To the east of the Hawkins Street and Livingstone Street intersection, Livingstone Street has an asphalt surface while to the west of this intersection this road is unsurfaced. Both the asphalt and gravel sections of this road are in a poor condition.
3.3
Hancock Street
Hancock Street is a narrow two-lane unsurfaced local road with one lane in each direction. It currently only services a few residential properties which are low trafficgenerating in nature. The road width is approximately 5.5m and it is in a poor condition with potholes.
3.4
Kirk Street
Kirk Street is a narrow unsurfaced road with one lane in each direction. It currently does not service any properties within the study area. The road width is approximately 5.5m and is in a poor condition.
3.5
Traffic Counts
Petrol filling stations normally generate peak traffic in the morning and afternoon peak hours of the adjacent roads therefore these periods will be analysed for the proposed petrol filling station. The existing traffic volumes for these peak hours on the surrounding road network were obtained from classified traffic counts undertaken by Bala Survey and Research at the following intersections on Friday, 8th July and Saturday 9th July, 2011, for a proposed shopping centre. These traffic counts were used in this traffic study for the petrol filling station as well. Traffic counts were undertaken at the following intersections: Hawkins Street and Livingstone Street intersection Hancock Street and Livingstone Street intersection
The Friday afternoon count was undertaken from 12:00 to 18:00 and the Saturday morning count was undertaken from 08:00 to 14:00. The existing Friday PM peak hour was found to be from 15:45 to 16:45 and Saturday AM peak hour was from 09:15 to 10:15. The existing traffic volumes at the Kirk Street and Hawkins Street intersection were easily extrapolated from the traffic counts at the above intersections. The existing traffic volumes are shown on Figure 2 which is an extract from the proposed shopping centre TIA.
Traffic Impact Statement for a Proposed Petrol Filling Station in Harding Project No. 107371 August 2011
3.6
Existing Pedestrian Activity
A fair volume of pedestrian activity was observed in the vicinity of the proposed petrol filling station. Pedestrian sidewalks are only provided along a section of Livingstone Road while in other sections of the study area pedestrians use the grassed road verges or the roadway itself to commute.
3.7
Public Transport Facilities
There are no formal public transport facilities in the vicinity of the proposed site however several mini bus taxis were observed parking informally on the road network within the study area. 4. TRAFFIC GENERATION OF THE PROPOSED PETROL FILLING STATION
From the publication South African Trip Generation Rates published by the national DOT, RR92/228 (1995), the trip generation rate for a proposed petrol filling station is given as 4% of the traffic on the adjacent road. The total peak hour traffic volumeson the adjacent road for the AM and PM peak hours are 663 veh/h and 553 veh/h respectively. Therefore, the petrol filling station is expected to generate 27 veh/h and 22 veh/h in the AM and PM peak hours respectively. The above trip generation rates have a directional split of 50 : 50. According to DOT (RR92/228, 1995), developments that generate over 150 vehicles per hour, in peak hours, require a full Traffic Impact Assessment (TIA) to accompany an application to the Authorities. However, those generating less than 150 vehicles per hour only require a Traffic Impact Statement (TIS). Therefore, a Traffic Impact Statement is required for the petrol filling station in Harding. The difference between these two documents is that the TIA must contain recent traffic counts and analysis of both existing and future traffic flows whereas, in a TIS, little or no analysis is required, instead the Traffic Engineers professional opinion is given more emphasis. 5. FINDINGS OF THE TIA FOR THE PROPOSED SHOPPING CENTRE ADJACENT THE PROPOSED PETROL FILLING STATION
A full TIA for the proposed shopping centre adjacent to the proposed petrol filling station, dated July 2011, was recently completed. The following salient points were extracted from the study for the shopping centre as it is relevant to the study for the proposed petrol filling station: The analysis of the existing traffic volumes on the surrounding road network showed that there is generally no major congestion encountered on the road network surrounding the proposed site during existing peak hours. The road network within the study area operates at a good level of service.
The analysis of the existing traffic volumes plus the shopping centre generated traffic volumes revealed that the Hawkins Street and Murchison Street intersection will encounter severe congestion during the base year peak hours. This intersection needs to be signalised in the base year to alleviate the envisaged congestion. The two other intersections within the study area will operate at acceptable levels of service during the base year. In addition, the analysis of the 5-year forecasted traffic volumes plus the shopping centre generated traffic volumes, exhibited that the Hawkins Street and Livingstone Street intersection will encounter increased levels of congestion specifically on the Livingstone Street approaches. This intersection needs to be re-evaluated in the five year horizon and if it meets the signal warrants at that time then it should be signalised. The pavement conditions of all the roads within the study area are in a poor condition. It is strongly recommended that these roads are rehabilitated to an acceptable level to facilitate the smooth flow of traffic. IMPACT OF THE TRAFFIC GENERATED BY THE PROPOSED PETROL FILLING STATION
6.
As mentioned in Chapter 4, the proposed petrol filling station is expected to generate 27 veh/h and 22 veh/h two way traffic in the AM and PM peak hours respectively. These traffic volumes are extremely low and will have a negligible impact of the existing levels of service on the road network within the study area, as there is sufficient capacity on the surrounding road network to convey these generated traffic volumes. The proposed shopping centre adjacent to the petrol filling station will generate a substantial volume of traffic on the immediate road network which will impact on the existing levels of service. However, the road improvements mentioned in Chapter 5 of this study will be implemented before the opening of the shopping centre to mitigate the impacts of the development generated traffic. These improvements will increase the capacity of the surrounding road network. Hence, the impact of the traffic generated by the proposed petrol filling station by the time the shopping centre is operational will be negligible. 7. CONCLUSIONS AND RECOMMENDATIONS Amber Dawn requested Aurecon to prepare a traffic study for a proposed petrol filling station in the southwest quadrant of the Kirk Street and Hawkins Street intersection in the Harding Central Business District (CBD). According to DOT (RR92/228, 1995), developments that generate over 150 vehicles per hour, in peak hours, require a full Traffic Impact Assessment (TIA) to accompany an application to the Municipality. However, those generating less than 150 vehicles per hour only require a Traffic Impact Statement (TIS).
Therefore, a Traffic Impact Statement is required for the petrol filling station Harding. The petrol filling station is expected to generate 27 veh/h and 22 veh/h two way traffic in the AM and PM peak hours respectively. These generated traffic volumes will have a negligible impact on the existing levels of service on the road network within the study area and no road improvements are required as a direct result of the proposed petrol filling station. A proposed shopping centre is planned for the vacant land adjacent to the proposed petrol filling station. The generated traffic volume from the shopping centre will impact on the existing levels of service on the immediate road network. As such, road network improvements were recommended in the traffic study for the proposed shopping centre. Once these recommendations are implemented, the combined impact of the proposed shopping centre and petrol filling station will be negligible.
It is therefore recommended that from a traffic perspective, the proposed petrol filling station located at the intersection of Kirk Street and Hawkins Street, be approved. Note: This report will have to be submitted to the uMuziwabantu Municipality and the KZN Department of Transport for their comments/approvals.
8.
BIBLIOGRAPHY
Department of Transport Manual for Traffic Impact Studies, RR 93/635, October 1995. Department of Transport South African Trip Generation Rates, RR 92/228, June 1995.
ANNEXURE A
GEOHYDROLOGICAL ASSESSMENT FOR PROPOSED PETROL FILLING STATION AT HARDING, KWAZULU-NATAL REFERENCE 41205R01
FINAL REPORT
March 2012
Prepared for:
Zeranza 311 (Pty) Ltd 6 Northside, 19 Intengu Avenue, Kloof, 3610 PO Box 880, Hillcrest, 3650 Tel: 076 642 2722; Fax: 086 664 7722 Email: kerry@amberdawn.co.za
Prepared by:
Terratest (Pty) Ltd 13 The Boulevard, Westway Office Park, 3629 PO Box 2762, Westway Office Park, 3635 Tel: 031 275 5500; Fax: 031 265 8255 Email: schapersr@jgi.co.za
Prepared by Terratest (Pty) Ltd
for Zeranza 311 (Pty) Ltd
GEOHYDROLOGICAL ASSESSMENT FOR PROPOSED PETROL FILLING STATION AT HARDING, KWAZULU-NATAL

REFERENCE No.: 41205 CARRIED OUT BY: Terratest (Pty) Ltd
13 The Boulevard Westway Office Park 3629 PO Box 2762, Westway Office Park, 3635 Tel: 031 275 5500; Fax: 031 265 8255 Email: schapersr@jgi.co.za
DATE: March 2012
REPORT STATUS: FINAL COMMISIONED BY: Zeranza 311 (Pty) Ltd

6 Northside, 19 Intengu Avenue Kloof 3610 PO Box 880, Hillcrest, 3650 Tel: 076 642 2722; Fax: 086 664 7722 Email: kerry@amberdawn.co.za
AUTHOR: ROBERT SCHAPERS
CLIENT CONTACT PERSON: MS K QUINN
SYNOPSIS: GEOHYDROLOGICAL ASSESSMENT FOR SITE OF PROPOSED PETROL FILLING STATION LOCATED IN HARDING, KWAZULU NATAL. KEY WORDS: Desk study, site assessment, hydrocensus, geophysics, geology, geohydrology, water sampling, groundwater and surface water quality, impact, risk assessment
COPYRIGHT: TERRATEST (PTY) LTD
QUALITY VERIFICATION
THIS REPORT HAS BEEN PREPARED UNDER THE CONTROLS ESTABLISHED BY A QUALITY MANAGEMENT SYSTEM THAT MEETS THE REQUIREMENTS OF ISO9001: 2008 WHICH HAS BEEN INDEPENDENTLY CERTIFIED BY DEKRA CERTIFICATION UNDER CERTIFICATE NUMBER 90906882
VERIFICATION
CAPACITY
NAME
SIGNATURE
DATE
BY AUTHOR
GEOHYDROLOGIST
M DURHAM
19-03-12
CHECKED BY
GEOHYDROLOGIST
R SCHAPERS
16-04-12
AUTHORISED BY
ASSOCIATE
R SCHAPERS
16-04-12
Ref: 41205\report\41205R01 Harding PFS GHI revised1.docx Page i
March 2012

TABLE OF CONTENTS 1. 2. 3. 4. 5. 5.1 5.2 5.2.1 5.2.2 5.2.3 5.3 5.4 5.5 5.5.1 6. 6.1 6.2 6.2.1 6.2.2 6.2.3 6.2.4 6.3 6.4 6.4.1 6.4.2 6.4.3 6.4.4 7. INTRODUCTION ..................................................................................................................1 TERMS OF REFERENCE ....................................................................................................1 INFORMATION SUPPLIED ..................................................................................................2 SITE DESCRIPTION ............................................................................................................3 SITE INVESTIGATION .........................................................................................................3 Introduction ...........................................................................................................................3 Desk Top Study ....................................................................................................................3 Geology and Structural Geology........................................................................................3 Geohydrology ....................................................................................................................4 Existing Groundwater Resources ......................................................................................4 Site Assessment and Hydrocensus.......................................................................................5 Geophysical Survey ..............................................................................................................9 Aquifer Assessment ..............................................................................................................9 Water Quality Status Quo ..................................................................................................9 RISK ASSESSMENT AND IMPACT ................................................................................... 11 Site Geohydrology and Conceptual Model .......................................................................... 11 Risk Assessment Discussion .............................................................................................. 11 Evaluation of Potential Contaminants .............................................................................. 12 Evaluation of Lining or Barrier ......................................................................................... 12 Evaluation of Underlying Aquifer ..................................................................................... 12 Strategic Value ................................................................................................................ 12 Risk Assessment Classification .......................................................................................... 13 Concerns, Impact and Risk Reduction ................................................................................ 13 UST Location .................................................................................................................. 13 Proposed Construction Techniques................................................................................. 14 Proposed Monitoring ....................................................................................................... 15 Other Considerations ...................................................................................................... 15 CONCLUSIONS ................................................................................................................. 16
Ref: 41205\report\41205R01 Harding PFS GHI revised1.docx Page ii
March 2012
APPENDICES Appendix A: Appendix B: Appendix C Appendix D: Appendix E:
Estimate of Recharge Results of Percolation Test and Inspection Hole Logs Results of Geophysical Survey Summary of Results of Laboratory Analysis on Water Sample and Laboratory Certificates Risk Assessment Classification
FIGURES Figure 1: Figure 2: Figure 3: Figure 4:
Locality Plan and Hydrocensus Survey Resources Regional Geology and Structural Features Regional Geohydrology Site Plan Showing Field Test Positions and Conceptual Groundwater Flow
Ref: 41205\report\41205R01 Harding PFS GHI revised1.docx Page iii
March 2012
1.
This report presents the results of a geohydrological investigation of the site of the proposed petrol filling station located on Erf 3 of 101 Harding, KwaZulu-Natal. The geohydrological assessment is a specialist study for the environmental authorisation process, and has been carried out in accordance with the requirements of Department of Environmental Affairs: National Environmental Management Act, 1998 (Act No. 107 of 1998), Section 32 of Government Notice R543 in Government Gazette No. 33306 of 18 June 2010. The geohydrological assessment of the site of the proposed petrol filling station was carried out in accordance with the following Department of Water Affairs (formerly DWAF) guidelines: The Department of Water Affairs and Forestry, undated. Requirements Relating to the Hydrogeology prior to the Installation of Underground Storage Tanks The Department of Water Affairs and Forestry, Third Edition, 2005. Waste Management Series. Minimum Requirements for Water Monitoring at Waste Management Facilities The Department of Water Affairs and Forestry, Second Edition, 1998. Waste Management Series. Minimum Requirements for Waste Disposal by Landfill South African Bureau of Standards, SABS 089-3-1999, Third Edition. Code of practise - The petroleum industry, Part 3: The installation of underground storage tanks, pumps/dispensers and pipework at service station and consumer installations
A phased approach to the geohydrological assessment was adopted and comprised the following: Desktop review Site assessment and hydrocensus survey Geophysical survey Groundwater quality status quo assessment Preliminary Risk assessment and impact analysis.
2.
At the request of Ms K Quinn of Zeranza 311 (Pty) Ltd, Terratest (Pty) Ltd submitted a proposal and cost estimate to undertake the environmental authorisation and preliminary geohydrological investigation of the proposed petrol filling station at Erf 3 of 101 Harding. This proposal and cost estimate was submitted by Terratest (Pty) Ltd to Zeranza 311 (Pty) Ltd in an email to Ms K Quinn referenced 41117/11/025 and dated 2nd September 2011. Terratest (Pty) Ltd were requested to proceed with the environmental authorisation and preliminary geohydrological investigation of the proposed petrol filling station by Ms K Quinn in and email dated 25 November 2011.
Ref: 41205\report\41205R01 Harding PFS GHI revised1.docx Page 1
March
3.
The following information has been used in the preparation of this report:Reports Report reference 50923 of TGC Engineers, titled Foundation Investigation for a Proposed Shopping Centre in Harding, dated 21 September 2011.
Documents and Guidelines South African Bureau of Standards, SABS 089-3-1999, Third Edition. Code of practise - The petroleum industry, Part 3: The installation of underground storage tanks, pumps/dispensers and pipework at service station and consumer installations Department of Water Affairs and Forestry, undated. Requirements Relating to the Hydrogeology Prior to the Installation of Underground Storage Tanks The Department of Water Affairs and Forestry, Second Edition, 1998. Waste Management Series. Minimum Requirements for Waste Disposal by Landfill The Department of Water Affairs and Forestry, Third Edition, 2005. Waste Management Series. Minimum Requirements for Water Monitoring at Waste Management Facilities Standards South Africa, SANS241 : 2011, Drinking Water The Department of Water Affairs and Forestry, Second Edition, 1996. South African Water Quality Guidelines : Volume 1 : Domestic Use Water Research Commission, the Department of Water Affairs and Forestry, the Department of Health, Second Edition, 1998. Quality of domestic water supplies : Volume 1 : Assessment Guide Eds A.B.A. Brink and R.M.H. Bruin, 1990. Guidelines for Soil and Rock Logging in South Africa, 2nd Impression 2001, Proceedings, Geoterminology Workshop organised by AEG, SAICE and SAIEG. Maps Map Sheet referenced 3029DB Harding, digital version, at a scale of 1:50000, of the Topocadastral Map Series, supplied by the Surveyor General Map Sheet titled, 3028 KOKSTAD, at a scale of 1:250000, dated 2002, of the Geological Map Series, supplied by the Council for Geoscience Map Sheet titled, Durban 2928, at a scale of 1:500000, first edition, dated 1998, of the Hydrogeological Map Series of the Republic of South Africa, supplied by the Directorate: Geohydrology, of the Department of Water Affairs and Forestry. National Groundwater Archive (NGA) digital information, as supplied by The Department of Water Affairs (DWA) as at April 2011 KZN Groundwater Resource Information Project (GRIP) digital information as supplied by The Department of Water Affairs (DWA) as at June 2011. Un numbered drawing of Hudson Naude Kirby, titled Contour plan of ERF 101 Harding, at a scale of 1:1000, dated May 2011 Drawing numbered HSC-SK7-3of101 Boogertman & Partners Architects, titled Sketch Proposal EFR 3 of 101, at a scale of 1:500m, dated August 2011 Un numbered drawing of unknown origin entitled Total Beta Spec, at a scale of 1:200, and undated.
Data Drawings
March
4.
The proposed filling station site is located in Harding on Erf 3 of 101, which is bounded by Livingstone, Hawkins, Kirk and Hancock Street. The proposed petrol station site will have access from Hawkins and Kirk Streets. The site is nearly square in layout, and is located in the eastern section of Erf 3 of 101, with an approximate area of 0.25ha. The location and extent of the proposed site is presented in Figure 1. The site is located in the T52K quaternary catchment, which has the Mzimkulwana and Nkondwana Rivers as the main drainage features. The Mzimkulwana originates northwest of Harding and eventually feeds into the Mzimkhulu River near to Port Shepstone on the KwaZuluNatal coast. The Mzimkulwana River flows from west to east passing around the northern side of Harding, and comes to within 1.1km of the proposed site. Two main tributaries pass through Harding from South to North and join the Mzimkulwana River on the Northern side of Harding. These tributaries are 1.1km west and 600m east of the site respectively. Erfs 1,2 and 3 of 101 grade down in a northerly direction at 1:44, while the eastern portion of Erf 3 of 101 slopes at a similar grade but more in a north north west direction. The general land use of the area can be described as urban built up land associated with the town of Harding. The site itself is on the boundary between Harding and unimproved grassland with a school located on the opposite side of Hawkins Street. A drainage channel flanks the eastern side of the site. The town of Harding is located in a generally flat area associated with the Mzimkulwana floodplain. The soils of the area are typically described as a sandy loam to a sandy clay loam. At the time of the investigation the site comprised isolated buildings on the eastern side with a free standing open sided shed on the western portion. The site was being used or chicken vending and the storage of farm related equipment.
5.
5.1 Introduction
A phased approach was adopted for the site investigation to meet the objectives of the geohydrological assessment. The geohydrological assessment for the proposed site was carried out in accordance with the DWAF guidelines given in Section 1. The site investigation was carried out over the period 6 March 2012 to 16 March 2012 and included the following: 5.2 5.2.1 Desktop review Site assessment and hydrocensus survey Geophysical survey Water quality status quo assessment Risk assessment and impact analysis. Desk Top Study Geology and Structural Geology
Regional Geology The regional geology of the area comprises grey shale, mudstone and subordinate sandstone of the Ecca Group. The Ecca Group is comprises dark grey shale of the Volksrust Formation, which is underlain by medium grained sandstone, mudstone and grey shale of the Vryheid
March
Formation, which in turn is underlain by dark grey shale of the Pietermaritzburg Formation. The Vryheid Formation is the most extensive formation of the Ecca Group and varies between 300 and 500m in thickness and comprises alternating successions of shale and sandstone. The Ecca Group has been extensively intruded by post Karoo dolerite. Geological mapping indicates any dolerite intrusive dykes or sills to be in excess of 1km of the proposed site Alluvium is associated with Mzimkulwana River valley floodplain to the north of Harding. The regional geology of the area is presented in Figure 2. Site Geology Based on the geological map and the site walk over, the site itself is underlain by shale of the Ecca Group. Shale weathers to a sandy clay matrix. No dolerite was evident in near proximity to the site. Structural Geology and Air Photo Interpretation Mapped intrusive dolerite dykes are evident 3 km north west of the site and 4.5km south west. A regional lineament associated with the Mzimkulwana River, with south west north east orientation, is located 800 metres north west of the proposed site. Structural interpretation from satellite imagery revealed several localised geological features with dominant south west to north east and south east to north west orientations. The closest of these features is located on the geohydrological upslope side of the site, and will not be impacted. A localised structure is located 1.6km away on the downslope side. These features were considered too far from the proposed site to have an impact and were not targeted by the geophysical survey as described in Section 5.3. The location and extent of regional and localised geological features are presented in Figure 2. 5.2.2 Geohydrology
The regional geohydrology of the area can be broadly described as predominantly argillaceous rock comprising shale, mudstone and siltstone. The principal groundwater occurrence is from an intergranular and fractured aquifer type, with median borehole yields in the expected range of 0.5 to 2.0 litres per second. The regional geohydrology of the area is presented in Figure 3. Median borehole yields in the Vryheid Formation rocks are 0.6l/s. Water strikes are mostly encountered in fractured rock however zones of weathering between sandstone and shale contacts can also yield water. Fractured rock is commonly associated with the intrusion of dolerite in the host rock matrix. Despite the medium to course grained sandstone of this formation, strong cementing results in the sandstone having limited to no primary porosity. Mean Annual Precipitation (MAP) for the T52K catchment is 803mm/A with a regional recharge of 64mm/A. The resulting anticipated recharge for the localised catchment area of the proposed petrol filling station site is 1.52M m3/annum. Localised recharge may be significantly lower than this figure as urban drainage systems associated with Harding will divert surface runoff to river discharge. The results of the recharge calculation are presented in Appendix A. 5.2.3 Existing Groundwater Resources
The National Groundwater Archive (NGA) and the KZN Groundwater Resource Information Project (GRIP) datasets of the DWA were interrogated to establish the existence of any boreholes in close proximity to the proposed site. No boreholes were located within 1km of the site. The NGDB reported eight (8No.) boreholes within approximately 3km of the site and the KZN GRIP reported four (4No.) boreholes. On review, three of the resources are common to both the NGA and Grip datasets. A summary of this borehole information is presented in Table 5.2.2. The locations of boreholes in close
March
proximity to the site as reported in the NGDB and KZN GRIP databases are presented in Figure 1.
Table 5.2.2: Summary of Groundwater Resource Information from the DWA NGA and KZN GRIP Approximate Final Depth to Co-ordinates DWAF Resource Co-ordinate Discharge distance from depth Groundwater No Accuracy (m) (l/s) Latitude Longitude site (km) (mbgl*) (mbgl*) 3029DB00008 -30.58754 29.90004 unknown 2.6 151 70 3029DB00009 3029DB00010 3029DB00011 3029DB00012 3029DB00035 3029DB00036 3029DB00037 3029DB00106 -30.58753 -30.58752 -30.58751 -30.58750 29.90003 29.90002 29.90001 29.90000 unknown unknown unknown unknown 100 100 100 unknown 2.6 2.6 2.6 2.6 2.1 2.3 2.5 2.5 78 90 90.1 109 18.3 18.3 30.5 119.7 6 4 29 30 0.97
-30.578365 29.857762 -30.579745 29.855532 -30.578365 29.860262 -30.553837 29.896398
* mbgl metres below ground level
Groundwater resources presented by the DWA datasets were not verified in the field as they were considered too far from the site to be impacted and/or were located on private property. 5.3 Site Assessment and Hydrocensus
Prior to conducting any fieldwork, a site walk over review was conducted to get a general understanding of the topographical, geological and geohydrological setting and to map any features not identified at the desktop level. The information gathered during the preliminary site assessment was used to develop a conceptual site model. Surface Water Features The Mzimkulwana River is located 1km north of the site, flowing from west to east. No shallow subsoil seepage was evident directly on the site at the time of the site walk over. A surface water feature is present approximately 375m west of the site where limited standing water was observed in a ground depression. The feature was located in an area of reed vegetation and is a possible expression of shallow groundwater. A dam is located 2km south west of the site and is understood to supply water to the residents of Harding. Smaller retention type dams are noted immediately north of Harding and their purpose is unknown. Unsaturated Zone Permeability A percolation test designated TP1 was carried out at the location shown in Figure 4. The result indicates that the shallow soils have a relatively low permeability in the order of 3.09x10-4 cm/s. The result of the percolation test is presented in Appendix B. A hand auger designated HA1 was undertaken at the location shown on Figure 4. The material encountered comprised topsoil and stiff clay with moderately weathered to weathered shale fragments. The material observed in HA1 correlates well with the material logged in TP1. No seepage was encountered at either location. The logs for both HA1 and TP1 are presented in Appendix B. Hydrocensus A hydrocensus survey was carried out in the vicinity of the proposed site to establish the locations of water resources and water use in the area, as well as existing potential contamination sources.
March
A total of seven (7 No.) features were identified during the survey. These included three surface water features, and four potential pollution sources. Groundwater resources presented by the DWA datasets were assessed as part of the survey although these resources could not be verified in the field as they were located on private property. The Weza protected area is located in excess of 8km west of the proposed site in the upper reaches of the Mzimkulwana River, and predominantly in the adjacent T40B quaternary catchment. This area will not be impacted by the development. The resources identified during the hydrocensus survey are summarized in Table 5.3 and the locations are presented in Figure 1.
March
Table 5.3: Summary of Hydrocensus Survey Information SURFACE WATER RESOURCES Resource S01 Sample Number TRT1091 South East 30 34 5.0 S 29 52 6.3 E River na unknown
Co-ordinates Resource Type Use Depth to GW Discharge Rate
Description
Mzimkulwana river sample point located 1km northwest of proposed site
Resource
S02
Sample Number
N/A
South East 30 34 15.1 S 29 52 35.1 E Standing water na unknown

Surface water located 375m west of proposed site in an area of reed vegetation, possible shallow expression of groundwater
Description
Resource
S03
Sample Number
N/A
South East 30 34 1.8 S 29 53 16.7 E Dam Unknown na unknown
Description
Surface water dam located 900m northeast of proposed site. Appears to be a series of small holding or retention dams
March
Table 5.3: Cont.. POTENTIAL POLLUTION SOURCES Source Co-ordinates Pollution Type Impact on Groundwater South P01 East 30 33 51.4 S 29 53 13.0 E Sewage treatment plant Biological and bacteriological Pollution source located downslope (laterally) from proposed site. Pollution source may be impacting on the water quality of the Mzimkulwana River. P02 South East 30 34 35.1 S 29 52 49.4 E Petrol filling station Physical chemistry Pollution source located upslope of proposed site. Pollution source may be impacting on the groundwater quality. P03 South East 30 34 35.9 S 29 53 3.2 E Petrol filling station Physical chemistry
Description
Source Co-ordinates Pollution Type Impact on Groundwater
Description
Description
Pollution source located upslope of proposed site. Pollution source may be impacting on the groundwater quality. P04 South East 30 34 56.5 S 29 52 41.3 E Timber treatment plant Physical chemistry
Description
Pollution source located upslope of proposed site. Pollution source may be impacting on the groundwater quality.
March
5.4
Geophysical Survey
As no geological features were identified in close proximity of the proposed site during the desktop assessment, a localised geophysical survey was carried out in a grid fashion on the site using a Proton Magnetometer instrument. The results of the geophysical survey showing magnetic variation across the proposed site are presented in Appendix C. Interpolation of the survey is presented in Figure 4. Thirteen (13 No.) traverses designated T1 to T13 were conducted across the site at 5m spacings with the purpose of delineating on site magnetic variations. The results indicate some magnetic variation although these anomalies are associated with metal equipment and objects located across the site including vehicles, farm equipment, metal structures and roofing. The magnetic variation across the site was 1202nT after inferred interference was ignored. The geophysical survey did not identify any potential drilling locations for monitoring purposes and, if required, any monitoring boreholes should therefore be positioned at the low point of the site along the northern boundary 5.5 Aquifer Assessment
Existing boreholes in the area suggest the groundwater to occur within 10mbgl, and yields of 1l/s are obtainable. These resources are not located near the proposed site and are therefore not indicative of site conditions. Drilling of a borehole was not considered necessary during this assessment and this can be reviewed if a positive ROD is likely. No boreholes were identified in close proximity to the site, and no boreholes that were suitable for aquifer testing to augment the groundwater conceptual model were identified. Groundwater flow direction can only be determined with triangulation from three or more boreholes. In the absence of monitoring data, conceptual groundwater flow normally mirrors topographic features. Based on topography, localised groundwater flow will be from the southeast to northwest towards the Mzimkulwana River in the valley to the north of Harding. The direction of the regional confined groundwater will be influenced by many factors beyond the scope of this report, including areas of recharge, dip of the shale bedrock, and boundary conditions at depth. The inferred localised groundwater flow direction is shown in Figure 4. Perched or seasonal groundwater may also occur on the site where vertical permeability is a factor less than horizontal permeability, where clay material or bedrock is intercepted. Perched groundwater conditions were not encountered on directly on site during the site visit although shallow groundwater has been observed in trial pits to the south of the proposed petrol filling station and shallow groundwater expression was observed approximately 375m to the west of site. Shallow perched groundwater, if present, is the likely receptor for possible future contamination. The deeper confined or semi-confined aquifers would be protected from potential contamination by perched conditions or by clay or bedrock horizons (see section 6.2.2). 5.5.1 Water Quality Status Quo
A water sample was collected by Terratest for chemical analysis from the Mzimkulwana River to establish the background water quality status quo and strategic value of the resources. The water sample was collected on 7 March 2012 and submitted to Talbot Laboratory for physical chemistry and bacteriological analysis.
March
The sample, referenced as S01, was collected by the grab method. The water sample was collected directly into sample bottles supplied by the laboratory, refrigerated and then dispatched to the laboratory under chain of custody protection. Discussion on Results of Water Analysis For the purpose of this investigation, the typical background surface and groundwater chemistry of the area was required, to establish if these resources are currently suitable for human consumption, and to assess the strategic value of the aquifer/s. As surface and groundwater is potentially at risk of being contaminated by the proposed petrol filling station, this would verify a likely potential pathway to human receptors by ingestion. The site is located within an urban environment which is inferred to have municipal water supply. Groundwater and surface water may be used by local farmers and residents for small scale agriculture, irrigation and stock watering on neighbouring farms. No groundwater sampling locations were identified at the time of this assessment. The results of analysis of the surface water sample collected from the Mzimkulwana River are summarized in Table D1 presented in Appendix D with the laboratory certificate. The results of analysis have been compared to screening guidelines to assess the suitability for human consumption. The SANS 241 Drinking Water Standards: 2011 upper standard limits, have been used for comparative purposes. The screening guideline values are included in the summary results table. The results of analysis indicate that surface water from the Mzimkulwana River had elevated total coliforms, E.Coli, turbidity and iron. These compounds were reported at levels exceeding the acute health or aesthetic limits, making the surface water unsuitable for human consumption. The elevated total coliforms and E.Coli are expected in a surface water sample and may represent surface contamination from livestock or runoff containing biological matter from adjacent areas. The turbidity is only marginally above the aesthetic limit, which is expected from a flowing surface water body. The Mzimkulwana River is therefore not suitable for human consumption without treatment. A summary of the reported concentrations of the above compounds is given in Table 5.5.1a and the aesthetics and health effects of these compounds are given in Table 5.5.1b.
Table 5.5.1a: Summary of Concentrations of Compounds Exceeding the Screening Guideline Limits
Compound Total coliforms E.Coli Turbidity Iron
Unit Count per 100mL Count per 100mL NTU mg/L
Screening Guideline Limit* 10 not detected 5 0.3
S01 248 62 5.1 0.83
*SANS241 Drinking Water Standards
March
Table 5.5.1b: Summary of Aesthetic and Human Health Effects on Selected Compounds
Compound
Total Coliforms E.Coli
Aesthetic Effects
- microbial growth
Human Health Effects

- gastroenteritis, salmonellosis, dysentery, cholera and typhoid fever - microbial infection and infectious disease transmission - causes gastro-intestinal disease, diarrhoea - none, however may enhance microbial growth and result in bacteria and virus counts
- none - objectionable appearance, taste and odour - may enhance absorption of organic compounds, making them difficult to detect in regular water analysis - increased disease transmission - unpalatable - slime coatings from iron bacteria - staining and discolouring
Turbidity
Iron
- tissue damage caused by haemachromatosis
6.
6.1 Site Geohydrology and Conceptual Model
Based on the aquifer assessment, the major geohydrological controls on site is the relatively low permeability cover soils and perched groundwater conditions. Groundwater flow is expected to be from the southeast to northwest towards the Mzimkulwana River. The low permeability of the shallow soils may give rise to perched groundwater conditions which may be seasonal and will be associated with periods of prolonged rainfall. The drainage channel located on the eastern boundary along Hawkins Street may also be contributing to the perched groundwater conditions. The depth to groundwater will be subject to localised geological control; and perched groundwater will tend to migrate laterally as opposed to vertically along the bedrock contact and will only recharge deeper aquifer systems at fractured or weathered zones. No borehole testing was carried out and aquifer yields could not be determined. Existing borehole databases suggest aquifer yields in the order 1 l/s and groundwater quality appears to be of acceptable quality, although this is based on limited data from one deep borehole. The resulting aquifer classification is moderate yielding and Minor. The resulting strategic value is medium. Future pumping tests would be required to determine the hydraulic conductivity and groundwater flux. 6.2 Risk Assessment Discussion
The assessment of the impact of the proposed petrol filling station should be based on the level of risk of that activity to contaminate the groundwater. In terms of the DWAF minimum requirements for monitoring at waste management facilities, a risk assessment must be carried out to determine whether the aquifer underneath and adjacent to the facility will become polluted by leachate emanating from the waste, or in the case of the proposed petrol filling station, contamination from loss of containment or spills. In carrying out the risk assessment, the following was considered: An evaluation of the potential contaminants An evaluation of the zone or barrier between the waste and the aquifer, and An evaluation of the aquifer.
March
6.2.1
Evaluation of Potential Contaminants
Potential Contamination of Proposed Activity Compounds of Concern (CoC) associated with the proposed petrol filling station include hydrocarbon contaminants associated with underground storage tanks and surface spillages. Hydrocarbons may contaminate the soils and groundwater on site and downstream of the site. Potential contaminants include the gasoline and diesel range petroleum hydrocarbons along with benzene and xylene. Petroleum products are typically less dense than water and are referred to as light non-aqueous phase liquids (LNAPLs). LNAPLs will float on water and any loss of containment and vertical migration of petroleum products beneath the proposed site would be halted by the shallow groundwater conditions. Existing Sources of Contamination The proposed petrol filling station site is located within an urban setting. Water quality may therefore be affected by localised urban activity including the existing site use, the sewage treatment plant, existing petrol stations, the timber treatment plant and general small industry. 6.2.2 Evaluation of Lining or Barrier
Lining systems are recommended by the SABS (SANS) guidelines for the installation of storage tanks and should be adhered to on all petrol station developments. Augmenting this is the unsaturated or vadose zone overlying the secondary aquifer which generally provides protection to the underlying aquifer from potential surface pollution. The permeability, clay content, fracture frequency and jointing patterns all influence the protection ability of the unsaturated zone. Based on percolation tests the permeability of the cover soils was calculated as 3.09x10-4 cm/s (0.27 m/d). Surface water will be prone to runoff before recharge during high intensity rainfall events. Long duration rainfall events will result in recharge. Recharge to the groundwater system will be limited by the underlying bedrock, thus forming potential seasonal perched groundwater conditions, and lateral movement becomes a concern. The cover soils with high clay content make a good barrier for contaminants passing through, however surface water and perched groundwater control needs to be addressed. 6.2.3 Evaluation of Underlying Aquifer
As no borehole drilling was carried out, the underlying bedrock aquifer yield based on data from one existing borehole in the area is classified as low to medium yielding. The site is underlain by shale of the Ecca Group which typically has a hydraulic conductivity of the order 0.01m/d. Shale typically has a low porosity of about 10 to 15%. The aquifer beneath the site is expected to be confined with piezometric water levels rising to within 10metres from ground surface. These aquifer systems will be protected by overlying strata and shallow perched conditions. As mentioned in section 6.1. The Parsons aquifer classification for this area is Minor. 6.2.4 Strategic Value
The town of Harding receives potable water through municipal infrastructure. The source of water could be from larger surface water dams located south west and north east of the town of Harding, therefore groundwater is not a key water resource on a local scale. Based on limited yield data from existing boreholes in the area, yields of around 1l/s can be expected. The aquifer is described by the DWAF (now DWA) minimum guidelines as moderate yielding and suitable for stock, garden and domestic use, with only limited development potential. The
March
aquifer is classified as Minor. Water quality is expected to be generally suitable for human consumption. The strategic value therefore is low to medium. 6.3 Risk Assessment Classification
The risk assessment is carried out in two stages, the first stage is an assessment of the vulnerability of the aquifer based on geohydrological factors and contaminant load, and the second, an assessment of the strategic value of the aquifer. An assessment of the risk of the aquifer was carried out and is summarized below. The detailed risk assessment is presented in Appendix E.
Stage 1 : Assessment of Aquifer Vulnerability Vulnerability of aquifer due to geohydrological conditions Vulnerability due to flow rate and contaminant load LOW
Overall Risk Based on Aquifer Vulnerability and Contaminant Load LOW to MEDIUM
LOW to MED
Stage 2 : Strategic Classification of the Groundwater Strategic value Relevance of threats of contaminants LOW
Strategic Risk
LOW LOW to MED
Aquifer Vulnerability Risk Assessment Summary Aquifer Strategic Value
LOW to MEDIUM LOW
6.4
Concerns, Impact and Risk Reduction
The main impact for consideration regarding the proposed development are leaks from pipe fittings and underground storage tanks (USTs), resulting in contamination of the shallow groundwater systems. Any contaminant seepage is more likely to migrate laterally and daylight off site and enter the surface water systems. In addition, the shallow or perched conditions will create a problem during construction when excavating UST chambers. Further, these conditions may cause tank buoyancy and therefore proper anchoring is required. The final concern is that of the existing surface drainage along Hawkins Street which may be contributing to perched groundwater conditions. 6.4.1 UST Location
The USTs should be positioned on the south or eastern side of the site. This will allow the greatest attenuation time and distance from the groundwater expression west of the site. The current drainage channel along Hawkins Street may be exacerbating the perched groundwater conditions encountered on the site. This will also create tank buoyancy problems. The Hawkins Street channel must be remediated or else the USTs must be moved away from this area.
March
6.4.2
Proposed Construction Techniques
Tank installations should be carried out in accordance with the SABS guidelines for the installation of underground storage tanks1 which are summarized as follows: The UST excavation dimensions should be at least 1.2m + tank diameter below the forecourt paving, and 1.0m + tank diameter wide and long. 0.5m should be allowed between any adjacent tanks Observation wells should be placed in each corner of the excavation as per the risk assessment engineering professionals design The excavation should be level at the base and free of rock or sharp objects A minimum thickness of 150mm backfill should be placed in the excavation and compacted to engineering spec. A cohesive sand or gravel should be used as backfill A sheet of suitable non-metallic (polyethylene) sheeting should be placed across the excavation floor in river sand with a minimum fall of 150mm across the tank length. The sheeting should extend up the excavation walls by at least 1.1m An internal observation well should be placed above the sheeting at the lowest point The tanks should be placed level and the cohesive sand backfill placed around the tanks by hand shovel in compacted layers of 150mm.
A schematic of a typical tank excavation is presented in below, and an additional 150mm backfill should be allowed below the polyethylene sheet.
Diagram
South African Bureau of Standards, SABS 089-3-1999, Third Edition. Code of practise - The petroleum industry, Part 3: The installation of underground storage tanks, pumps/dispensers and pipework at service station and consumer installations Ref: 41205\report\41205R01 Harding PFS GHI revised1.docx Page 14
March
An interceptor drain system should be installed along the base of any fill platform if applicable to intersect and collect potentially polluted surface water runoff from the forecourt. This drain should feed through an oil/water separator at the lowest point of the site (i.e. the northern boundary) so that any product can be recovered and disposed of in a suitable manner. 6.4.3 Proposed Monitoring
To pre-empt environmental contamination, it is highly recommended that a monitoring system or early warning system be installed to detect free product in the soils as per the SABS requirements. This can be achieved by installing monitoring piezometers around USTs during construction as per Section 6.4.2. The internal monitoring well recommended in Section 6.4.2 should be designed with the capacity to act as a scavenger well as required, to remove any free phase accumulation. Additional downslope monitoring piezometers may also be useful to detect lateral contamination movement. Periodic monitoring of the piezometers around the tank farm excavation can be carried out using an electronic interface meter to detect the presence of any possible LNAPLs. It is recommended that monitoring be carried out on a quarterly basis taking cognisance of prevailing climatic conditions. 6.4.4 Other Considerations
Groundwater Use Of concern is the potential for future groundwater users on the down slope side of the site. Currently, the land is undeveloped and the Municipality must consider future land use and zoning in respect of the proposed development. Consideration should be given to the application of a mandatory exclusion zone or a detailed aquifer assessment on the downstream side of site. Surface Waters The surface water drainage system along Hawkins Street needs to be remediated and managed according as it may be contributing to the prevailing shallow groundwater conditions. There appears to be evidence of shallow water indicated by limited standing water and reed vegetation west of the site. Surface runoff originating from the site needs to be managed by a collector drain and oil water separator on the down slope side of the site, and isolated from adjacent surface water systems. The Mzimkulwana is located approximately 1km north of the site and is considered highly unlikely to be contaminated by hydrocarbons through the soil and rock matrix over this distance. This can easily be managed by appropriate early detection systems. A conceptual model depicting the localised groundwater flow direction is presented in Figure 4.
March
7.
This report presents the results of a geohydrological investigation for the proposed petrol filling station site in Harding. This report has been prepared as a specialist study for the Basic Assessment Report. The aim of the investigation was to ascertain and characterise the geohydrological setting and to determine the risk of impact on the groundwater environment from the proposed development. The geohydrological investigation was carried out in accordance with Department of Water Affairs (formerly DWAF) guidelines using a phased approach. An understanding of the geohydrology of the area was established from a desktop review, site assessment, geophysical survey and aquifer assessment. This information was used to carry out a preliminary risk assessment of the aquifer beneath the proposed site. The site is underlain by clayey soils with low permeability of the order 3.09x10-4 cm/s. The soil is underlain by residual clays and weathered shale. The main groundwater occurrence is from an intergranular and fractured aquifer type. Regional faults are absent. Several local geological structural features were identified in close proximity to the site, however, these occur on the geohydrological upslope side of the site. A hydrocensus survey was carried out to establish groundwater usage in the vicinity of the proposed site. Nine (9 No.) boreholes were reported by the DWA borehole datasets, however, none were within 1km of the site, or could be located in the field. Only one record (ref. 3029DB00106) indicate a borehole yield of 1l/s. Based on this, the Parson aquifer classification is Minor and Low to Medium Yielding. A geophysical survey using a Proton Magnetometer was undertaken in a grid pattern across the site. Some magnetic variation was observed although these were associated with metal equipment and objects located across the site. No geological anomalies were identified by the site assessment or geophysical survey. No borehole drilling was carried out during the current assessment. No boreholes in the vicinity were identified for sampling purposes. Water sampling and analysis of the Mzimkulwana River was carried out. The surface water sample results indicate that the water is not fit for human consumption with elevated levels of total coliforms, E.Coli, turbidity and iron. A preliminary risk assessment was carried out to determine if the proposed development would impact the aquifer beneath the proposed site. The risk assessment reviewed the vulnerability and the strategic value of the aquifer in order to establish the level of risk of contamination from the proposed development. The risk assessment is summarized as follows: Aquifer Vulnerability Aquifer Strategic Value LOW to MEDIUM LOW
Based on the risk assessment, the proposed development will only impact the aquifer/s beneath the site if loss of containment occurs. Mitigating measures should be implemented to minimise the potential impact. These include the installation of USTs in accordance with SABS guidelines, with associated early warning piezometers. Routine monitoring, sampling and analysis of the early warning system should be carried out. Quarterly monitoring and bi-annual sampling is recommended. USTs should be located on the southern or eastern side of the site to allow the greatest attenuation distance from the groundwater expression west of the site. The drainage channel along Hawkins Street may be contributing to perched groundwater conditions and recharge and must be remediated. The land immediately north of the site is currently undeveloped and the Municipality should consider future land use and zoning in respect of the development, which may require groundwater use exclusion in future title deeds.
March
First Estimate of Recharge
Ref: 41205\report\41205R01 Harding PFS GHI revised1.docx Appendix Page 1
March 2012
March 2012
Results of Percolation Test and Inspection Hole Logs
March 2012
March 2012
March 2012
March 2012
Results of Geophysical Survey
March 2012
March 2012
March 2012
March 2012
March 2012
March 2012
March 2012
March 2012
Summary Results of Laboratory Analysis on Water Samples And Laboratory Certificates
March 2012
March 2012
March 2012
Risk Assessment Classification
March 2012
ASSESSMENT OF AQUIFER VULNERABILITY

Table E1.1: Vulnerability of Aquifer due to Geohydrological Conditions
Measurement
Physical Description and Measurements current water table depth unknown, possibly <10m but aquifer expected to be confined; perched conditions prevail MED cover soils with high clay content and perched conditions offer reasonable natural barrier, LOW Unsaturated Zone
Rate of flow in unsaturated zone 0.27m/d with high clay content; LOW Capacity to absorb contaminants Medium to high absorption associated with clay MEDIUM to LOW Capacity to create effective barrier Yes LOW
Comment
Vulnerable to many pollutants except those highly absorbed
Vulnerability Class
LOW to MEDIUM
Good biological barrier but moderate to poor physical chemistry barrier.
Contaminant Reduction
Compounds of Concern Hydrocarbons/ BTEX HIGH Reduction of nitrates and phosphates NA Reduction of bacteria and viruses N -
Table E1.2: Vulnerability due to Flow Rate and Contaminant Load

Typical hydraulic output Natural ~250mm/d Typical time (d) to travel 1m Factor affecting flow rate Contaminant Load Potentially high but can be mitigated by construction to SABS standards Impact of contaminants on normal flow through unsaturated and saturated zones filtration and dilution in flow rate adsorption saturated zone low reasonable Not applicable Risk Level
~4
LOW to MEDIUM
Table E1.3: Overall Risk Based on Aquifer Vulnerability and Contaminant Load Contaminant load risk high Medium very high high (obtain alternative water Extreme (implement remedial source or ensure adequate measures) treatment of groundwater) high (implement remedial measures) high (implement remedial measures)
minimal high (implement remedial measures) medium (take precautionary measures)
High Aquifer Vulnerability
Medium
high (implement remedial measures)
medium (take precautionary measures)
low (no action required)
Low
medium (take precautionary measures)
minimal (no action required)
Negligible
March 2012
STRATEGIC CLASSIFICATION OF THE GROUNDWATER

Table E2.1: Strategic Value of Groundwater and Risk of Impact Strategic value
Groundwater Use (present or future) Domestic use Potential Yield (Ml/d) < 0.1
Relevance of threat of contaminants

Comment Currently used >2km upslope from site, may have future value closer to site Currently not used, but may have future value Currently not used, but may have future value Medium risk; aesthetic and health risks associated with potential contamination of groundwater which may be ingested, ongoing monitoring required
Strategic Risk
Agricultural use (animal drinking water) Agricultural (irrigation) or industrial use
< 0.1
Medium risk; ongoing monitoring in terms of stock watering limits to be carried out
LOW
< 0.1
Low Risk; some crops may be sensitive, Ongoing monitoring required to determine long term crop absorption impact
SUMMARY
Table E3: Risk Assessment Summary
Aquifer Vulnerability Aquifer Strategic Value
LOW to MEDIUM LOW
March 2012
Figure 1: Figure 2: Figure 3: Figure 4:
Locality Plan and Hydrocensus Survey Resources Regional Geology and Structural Features Regional Geohydrology Site Plan Showing Field Test Positions and Conceptual Groundwater Flow
Ref: 41205\report\41205R01 Harding PFS GHI revised1.docx Figures Page 1
March 2012
March 2012
March 2012
March 2012
March 2012

Economic Study of Solar Energy On Petrol Pump Specialist Studies Economic Study

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Economic Study of Solar Energy On Petrol Pump Specialist Studies Economic Study

Uploaded by

Copyright:

Available Formats

Economic Impact Study for a Proposed Fuel Service Station on the corner of Kirk and Hawkins Streets, Harding,

Report prepared by:

KEYWORDS: Harding, fuel, petrol, diesel, station, turnover, convenience store

Section 1: Broader Context

The Impact of the Shopping Centre and other Developments on Demand

Section 2: Economic Analysis

Background to the Multiplier Analysis

The Construction Phase

Table 2.1: Breakdown of Construction Costs

Table 2.2: Annual Impact on GDP

R2,040,887 R982,262 R5,500,000 R2,873,737

Table 2.3: Impact on Employment

Indirect effect (d) 0.65 2.95 0.2 0.1 1.75 5.65

Table 2.4 Labour Remuneration

Building construction Business services Government Machinery and equipment Total

R 2,257,258 R 321,251 R 266,449

R 510,101 R 73,388 R 165,734

R 280,091 R 22,396 R 11,905

R 329,419 R 39,931 R 74,055

R 1,119,611 R 135,716 R 251,695

The Operational Phase

Table 2.5: Projected fuel sales per quarter

Vehicle stops per year (a)

Petrol sales (litres) (b )= (a)80%25 l

Diesel sales (litres)(c)=(a) 20%25 l

Turnover from petrol sales

Turnover from diesel sales

Year 1: Fuel Year 2: Fuel Year 3: Fuel

134,400 151,200 168,000

2,688,000 3,024,000 3,360,000

672,000 756,000 840,000

R 31,180,800 R 35,078,400 R 38,976,000

R 7,190,400 R 38,371,200 R 8,089,200 R 43,167,600 R 8,988,000 R 47,964,000

Table 2.6: Total Turnover of development

Impact on Gross Domestic Product

Table 2.7: Annual Impact on GDP

GDP Year 1 Year 2 Year 3 Total

Input R 43,440,000 R 48,654,000 R 53,743,200 R 145,837,200

Indirect effect (d) R 7,370,504 R 8,255,168 R 9,118,658 R 24,744,330

Impact on Employment and Labour Remuneration

Summary of General Impacts

Table 2.9: Summary of Annual Impact

The Impact on Local Competitors

Service station market

Table 2.10 Nearest fuel service stations in the surrounding area

Estimated negative impacts on competitor stations

PROPOSED REZONING: PORTION 3 OF ERF 101 HARDING, UMUZIWABANTU MUNICIPALITY ______________________________________________________________________________________________________________________

TOWN PLANNING REPORT PART OF PORTION 3 OF ERF 101 HARDING

- MOTIVATION 1. THE SITE

The total extent of Portion 3 is 8 093m, of which 3000m

__________________________________________________________________________________________________________ PLANKONSULT Town and Regional Planners: MARCH 2012 Page 1

PROPOSED REZONING: PORTION 3 OF ERF 101 HARDING, UMUZIWABANTU MUNICIPALITY ______________________________________________________________________________________________________________________

__________________________________________________________________________________________________________ PLANKONSULT Town and Regional Planners: MARCH 2012 Page 2

PROPOSED REZONING: PORTION 3 OF ERF 101 HARDING, UMUZIWABANTU MUNICIPALITY ______________________________________________________________________________________________________________________

NEED AND DESIRABILITY

Need in the Public Interest

From a Sound Town Planning Point of View

Availability of Commercial Space in Harding

__________________________________________________________________________________________________________ PLANKONSULT Town and Regional Planners: MARCH 2012 Page 3

PROPOSED REZONING: PORTION 3 OF ERF 101 HARDING, UMUZIWABANTU MUNICIPALITY ______________________________________________________________________________________________________________________

Desirability in the Public Interest

Access and accessibility

Impact on Surrounding Properties