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JOLOOD CITYAn Industrial Clusters for Leather Sector

The Sudanese Chamber of Leather IndustryFebruary 2013

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Leather in Sudan

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Status of Leather Production

 السنة

األبقار الضأن الماعز

الكميةألف) قطعة (

الوزن ألفطن )

)

الكميةألف ) قطعة (

الوزنألفطن )

)

الكمية ألف) قطعة(

الوزن ألفطن )

)

1997 1592 12.7 9974 16.0 11186 12.3

1998 1612 12.9 10099 16.2 11322 12.5

1999 1635 13.5 10939 17.5 12343 13.6

2000 3002 24.0 11077 17.7 12305 13.5

2001 3336 26.4 12255 19.6 12287 13.5

2002 3350 26.8 12389 19.8 12367 13.6

2003 3510 28.1 13497 21.5 13488 14.8

2004 4087 32.7 13643 21.8 13510 14.9

2005 4121 33.0 14193 22.7 13792 15.2

2006 4297 34.4 14544 23.3 14033 15.4

2007 4320 34.6 14624 23.4 14255 15.7

In the year 2007, the total estimated number of raw material production was 16 millions pieces (2 millions cattle hides, 8 millions sheepskins and 6 millions goatskins and). About 10.8 millions skins and 0.5 million hides are processed locally in the mechanised tanneries. The rest, (which is 1.5 millions hides and 3.2 millions of sheep and goat skins) are exported as raw, go to the artisan tanneries or are lost due to defects and damages. Nowadays the real production of the mechanised tanneries does not exceed 26% of hides and 35% of skins from the original designed capacities. In 2007, 6.6 millions skins and 0.2 million hides were exported in semi-processed form. These values represent 61% of skins and 40% of hides of the local production of working tanneries.

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Status of Leather Industry

االســــــــــــــــم

Skins Hides FinishingDesign Actual Design Actual Design Actual

بالقطعة خفيفة جلود ثقيلة جلود ج ) ( التشطيب

تصميم فعلي تصميم فعلي تصميم فعلي

افروتان 10000 9250 1000 200 -- --مدبغة مؤسسة

الجزيرة8000 7500 1500 750 -- --

مدبغة شركةالخرطوم

10000 7000 600 400 300 200

األبيض النيل 10000 2000 750 -- -- --أفريقيا مصنع

للجلود3000 100 300 300 -- --

النصر 6000 3000 300 200 60 120للجلود امدرمان

واألحذية5000 1000

متوقفة300 100 30 100

للصناعات سمارهالجلدية

4000 2000 -- -- -- --

سالم مدبغة 3000 2000 600 100 -- --

سليمان مدبغة 6000 3000 متوقفة

-- -- -- --

تكسيم مدبغة 8000 3000 -- -- -- --أبو – هبتان مدبغة

العز5000 2000 500 180 -- --

أستار آفرو مدبغة 4500 3000 250 10 -- --إمدادات مصنع

للجلود5000 800

متوقفة150 100 6 67

مصعب مدبغة 4000 3000 -- -- -- --لتحنيط الشيخ

الجلود3000 200

متوقفة-- -- -- --

درما مدبغة 4000 1500 -- -- -- --الفاروق مدبغة 3000 متوقفة -- -- -- --اآلمال مدبغة 2000 متوقفة -- -- -- --نباال مدبغة 2000 متوقفة -- -- -- --

الحديثة امدرمان 1000 متوقفة -- -- -- --األحمر البحر 1500 750 -- -- -- --هايد آفرو 1500 1500 -- -- -- --اليومية الجملة 99500 53150 62550 2930 780 607

السنوية الطاقة 29850000 15945000 1875000 579000 -- --النسبة   55.3   46.9    

1. The absence of the specialised industrial estate, which increases the production costs in many aspects.2. The close down of many tanneries due to absence of drain systems.3. Insufficient raw material for the tanneries, due to the export of the raw material.4. High deficiency in the finished leather for the footwear industry.5. Inadequate training and knowledge of skilled labour involved in the industry from the flayer in abattoirs to the shoemaker in the shoe factories. 6. The lack of recognised standards of healthy requirements for leather products and the imported leather footwear.7. Low customs duties of the imported footwear compare to the customs duties of the imported production components for the local footwear factories.

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Leather Production

Preparatory Tanning Crusting

Preservation, Soaking, Liming,

Unhairing, Fleshing, Splitting, Reliming, Deliming, Bating,

Degreasing, Frizing, Bleaching, Pickling,

and Depickling

Wetting back, Sammying, Splitting,

Shaving, Rechroming,

Neutralization, Retanning, Dyeing, Fatliquoring, Filling, stuffing, stripping, whitening, fixating,

setting, drying, conditioning,

milling, staking, and Buffing

Vegetable Tanning, Mineral Tanning, Chrome Tanning, Tawing

Finishing

Oiling, Brushing, Padding,

Impregnation, Buffing, Spraying,

Roller Coating, Curtain Coating,

Polishing, Plating, embossing, ironing,

Ironing/Combing (for hair-on), Glazing, and

Tumbling

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Leather Crafting

Footwear

Coats & Dresses

Dying

Accessories

Painting

Carving

Furniture

Bookbinding

Sport Gears

Stamping

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Academic Wishfulness

Most Studies had addressed both Economic and Operational factors, with little to emphasis on Urban, Social and Demographic Impacts

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Industry Challenges

Regulatory

Investment

Technology

Resources

Organization, Eligibility and Affiliation

Cluster Management and Development

Feasibility, Marketing and Sales

Incentives, Vacancies and Opportunities

Urban & Environmental Alignments

Equipments, Logistics and Supplies

Sustainable Capacity Building

Infrastructure and Civic Facilities

In the $ 70 billion business , Africa has more than 25% of the world animals, yet with inadequate implementations and technology, it only contributes

by 10% of the global industry. Sudan is a mirror of African Leather Business

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Stakeholders

JoloodCity

Civic Regulatory Agencies

Environmental Management Agency

Meat Business Interest Group

Seed & Strategic Investors

Entrepreneurs & SMEs

National Planning Agencies

Industrial Development Agencies

An Exclusive Industrial & Urban Community

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UNIDO Framework

Advanced Inclusive and Sustainable Industrial

Development

Partnership

Local Businesses

Increasing Stakeholder Value and Sustainable Business

Growth

Government

Public Sector

Private Sector

SME Business

S. I. Groups

MDGs

Capacity Building

Environment & Energy

The United Nations Industrial Development Organization (UNIDO) helps developing countries and countries with economies in transition in their fight against marginalization in today's globalized world. It mobilizes knowledge, skills, information and technology to promote productive employment, a competitive economy and a sound environment.

- Service Modules: Instructions- Industrial Governance and Statistics- Investment and Technology Promotion- Industrial Competitiveness and Trade- Private Sector Development- Agro-Industries- Sustainable Energy and Climate Change- Montreal Protocol- Environmental Management

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Location Challenges

SUPPLIES

MARKETS

TRANSPORT

LABORS

UTILITIES

CIVICS

BUSINESS

ECOLOGY

HABITATS

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Technology Challenges

Urban & Environmental Alignment

Cost of Modernization and Refurbishment

Training of Professional Staff and Labors

Equipment, Logistics & Supplies

Capacity Building Challenges in the Underdeveloped

Business Subscriptions and Affiliations

Conceptual Structuring of Sustainability and Efficiency

Waste Water Treatment & Purification Systems

Air Pollution Control & Protection Systems

Solid Waste Management and Treatments

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Location Challenges

Avoid the Dense Capital

Establish New Urban Center

Linked to Major High Ways

Preferably Linked to Rail Ways

Linked to National Grids

Linked to Water Resources

Management of Solid & Wet Waist

Easy Urban Expansions & Extensions

Jolood City

Alternate Sites

ProposedSite

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Asset Based Development

The Development Baselines’ Integration, Optimization & Validation

Revised Sales Modeling; Based on GFA & Commercialization

Developing Alternative Concessions & Revenue Streams

Re-value the DevelopmentOn Asset-Base Valuations

Neo Investment Modeling

(Asset-Based Investment)

FDI’s &Shareholding

PPPModeling

Conventional Debt Management(Debt-Based Investment)

Concession Enablers & Design

Banking Credits & Facilities

Risk-ExposureManagement

Legal Limits & Constraints

The Holistic Real Estate Approach

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Excellence Road Mapping

ConsortiumCompany

Delivery ofInfra-Products

Initial Consent

Location’s Composition

Connectivity& Transit

Engineering Framework

Technical Guidelines

PublicAmenities

Macro Planning Targets

Branding & Marketability

Area/GFABreakdown

FDIs’ Credits & Incentives

Commercial Concessions

Administration One Stop Shop

Township Management

The Assets

TheCapital

TheProduct

Legal Framework

Enabling Environment

Statuary Permits

Cost of Assets

Delivery Protocols

Project Plan & Program

Pre-Operating Budget

These 25 Focal-Zones will generate the Standard Bankable Documents

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Town Management

Expand Expand

Expand Expand

Residential

Commercial

Industrial

Utilities

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Real Estate Products

Industrial42%

Housing42%

Commercial8%

Others8%

Urban BreakdownHeavy Indus-trial20%

Medium Industrial40%

Small Industrial40%

Profile of Businesses

Family Housing60%

Bachler Housing40%

Profile of Housing

Industrial35%

Housing45%

Commercial15%

Others5%

Cost Breakdown

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Model Plot Details

Facilities and SuppliesPower Supply:xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Potable Water Supply:xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Gas Supply:xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

ICT Supply:xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Non-potable water Supply:xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Broad Band Supply:Xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Sewage Disposal:xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Drainage Disposal:xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Solid Waste Disposal:xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Hazardous Waste Disposal:xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

CO2 Omission:xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Gas Omissions:xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxXxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx

Identifications

Plot ID: XXXXXXXXXZone: XXXXXXXXXXXXXPlot Area: xxxxx.xxx m2Coverage Area: xxxx.xxx m2Allowed GFA: xxxx.xxx m2Allowed FAR: xxx.xxxGIS Coordinates:A-xx.xx.xxxxxB-xx.xx.xxxxxC-xx.xx.xxxxxD-xx.xx.xxxxxSet Backs:Front: xx.xxxx mRare: xx.xxxx mSide-1: xx.xxxx mSide-2: xx.xxxx mGate Level: +xx.xxx m

Street No. xxx

Plot No. xxx

GIS xx.xx.xxxxxxGIS xx.xx.xxxxxx

GIS xx.xx.xxxxxx GIS xx.xx.xxxxxx

Area xxxx.xxx m2

Border xxx.xxx m

Border xxx.xxx m

Bord

er x

xx.x

xx m

Bord

er x

xx.x

xx m

xx.xxx mxx

.xxx

m

xx.x

xx m

Coverage ParameterPl

ot N

o. x

xx

Plot

No.

xxx

Plot No. xxx

The role of Urban Regulatory is the Unspoken Factor for Making or Breaking Development Endeavors

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Conceptual Road Profiles

E-002

E-008

Roads Network is the Mirror of Competent Infrastructure, whereas their Concept, Design, and Construction Reflect the State of Urbanism

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Urban Planning Guidelines

PrinciplesAspirationExcellence of urban development complement to national ambitionVisionSudanese economy contributes to raising stars of AfricaPurposeMagnet for int’l business and local industrial developmentJolood CityA New version of delivering the comprehensive and integrated developments

Open SpaceSustainabilityElements to assure the growth and conservation of healthy greenish areaBuffersPlants are ideally used to protect plots and enhance environmentRecreationalThe creative Urbanism has lots of added value for people preparednessWater BodiesThe magic of water bodies will enable spiritual balance and cheerful atmosphere

ContextRegionalCrowning the planning concepts of industrial parksLocalUtilize and capitalize on the local resources for socioeconomic successSite ConfigurationInterpret the constraints into feasible and successful business opportunitiesUrban FrameworkPlan and design adequate and practical details for the urban breakthrough

AmenitiesCommunityThe direct requirements for the public convenience & comfortEmergencyPreparedness against the unplanned risks, hazards or violationsFacilitiesCritical and physical aggregates for activities to be performedSecurityFramework, Personnel and tools to provide physical control

ZoningLand UseJolood will have predefined land use for each plot to shorten processing timeCommercialityThe more pros & cons are predefined, the assure its commercializationTransitRegional and local public transit will be integratedPopulationPeople are the critical soft resources for any success, therefore they are considered.

EngineeringSpecifications, delivery protocols and quantities of physical inputs and outputs of intended buildingsStructural IntegrityEngineering CodesWater SupplyPower SupplySewage TreatmentDrainageICT ManagementWaste ManagementDisposals

MobilityVehicularLong vehicles are considered in all maneuvering schemesRoad ProfilesMinimized profiles with single direction to avoid jamsParkingParking will be used for loading and unloading to maximize plot usePedestrianSide walkways are designed for all categories with sufficient accessories and furniture

ArchitecturalStreetsVision and Standards for the outdoor environmentExteriorsStrategy and codes for visual comfort and convenience of buildingsPlantationSustainability of landscape and plantation of public& private spacesUrban FurnitureAdding life to the public and open spaces, considering the physical needs of inhabitants

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SCR Programs

CSR FrameworkPartnership Framework

Private Sector

Gov Ownership

Special Purpose Vehicle

PPP Product/Service

Asset Based Value

Partnership Form

Operating Company

Local Authority

CSR Initiatives

CSR Programs

Development Targets

Local Development Plans

VOCATIONALVocational High School

Vocational Training Programs

EMPLOYMENTPriorities and Opportunities to

Local Human Resources

HOUSINGContributions to Local Housing

Improvement Program

URBANISMDeveloping a Local Integrated

Community Center

YOUTHSponsoring Sport, Camping and

Campaigning Activities

EDUCATIONSupport Local Schools

Support Local Teachers

HEALTHCAREDeveloping a Comprehensive

Local Healthcare Center

INFRASTRUCTUREContributions to Local Grids and

Networking

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IDM Framework

Pre Concession Stage

Project Realization

Project Initiation

Product Validation

Fitness for Validation

SPV’s Initial Consent

Concession Company

Investment & Development Management Plan

Shareholders & Investors Management

Stakeholders & Regulatory Management

1

2

3

Post Concession Stage

Assets Development

Assets Management

Landlords &Plot Investors

End-Users

Infrastructure Technical & Procurement Management

Property & Commercial Concessions Management

4

5

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Legal Framework

Investment Development & Management (IDM)

Consortium of Jolood Capital Partners

Minority Investors

(Syndicates, SIGs, Unions,..)

Development Agency

(Government Partner)

Sector Operators

& Investors

X1, X2, X3, ..(Strategic Seed

Investors)

Jolood Holding

The Concession Company

World Bank Procurement

& ConcessionsGuidelines

Award Mgmt

Negotiate

Award

Product

Concession Design Mgmt

Enabling Environment

PPP Initiative

Regulatory

Targets

Special Purpose Vehicles (SPVs)

Jolood Capital SME Platform

Investments

JoloodDevelopment City Hall

Land Bank

JoloodProperties Land Concessions

Built Plots Concessions

Jolood Industries Business Development

Business Partnership

Jolood Resources CSR Programs

Training & Research

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Time Line

H2/Year -2 H1/Year 1 H1/Year 2H2/Year 1H2/Year -1H1/Year -1

Operations Planning

Prop

osal Ph1

ProjectRealization

Post Concession Activities & Implementations

Ph2Project

Initiation

Ph2Project

Validation

Legal, Financial & Technical Implementations

Proc

urem

ent o

f PM

/ E

PC /

Su

pplie

rs/O

pera

tors

Proc

urem

ent o

f Mas

ter

Plan

ning

Con

sulta

nts

Proc

urem

ent o

f Leg

al &

Co

rpor

ate

Cons

oler

sSign Off Ph2

Proc

urem

ent o

f O

rien

tatio

n Ex

pert

s

Development Processing

Enga

gem

ent o

f Inv

estm

ent

& D

evel

opm

ent M

anag

er

Sign Off

IDMA

Sign Off Ph1

Sign off The Concession Company

Sign Off

MOU

City Infrastructure (24 Months)

Built Plots Development (Phase-1)

Land Plots Development (Phase-1)

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Cost Estimates

Particular % Zone Plot Qty FAR Total GFA Plot Cost Plot Value Total Value Cpita %

City Border 100% 4,200,000 4,200,000 4,200,000

Infrastructure 40% 1,680,000 117,600,000

Totals 2,520,000 5,922 4,200,000 121,800,000 3,150,000,000 50,750

Heavy Industrial 5% 210,000 5,000 42 1 210,000 145,000 3,750,000 157,500,000 2,100

Medium Industrial 10% 420,000 2,000 210 1 420,000 58,000 1,500,000 315,000,000 5,600

Small Industrial 10% 420,000 500 840 2 840,000 14,500 750,000 630,000,000 8,400

Sub-Total 1,050,000 1,092 1,470,000 1,102,500,000 16,100 32%

Family Housing 15% 630,000 200 3,150 1 630,000 5,800 150,000 472,500,000 12,600

Bachelor Housing 10% 420,000 500 840 3 1,260,000 14,500 1,125,000 945,000,000 16,800

Sub-Total 1,050,000 3,990 1,890,000 1,417,500,000 29,400 58%

Commercial 5% 210,000 500 420 3 630,000 14,500 1,125,000 472,500,000 4,200

Others 5% 210,000 500 420 1 210,000 14,500 375,000 157,500,000 1,050

Sub-Total 420,000 840 840,000 630,000,000 5,250 10%

Land Cost calculated @ $1/m2

Infrastructure Cost calculated @ $7/m2

Construction Cost calculated @ $75/m2

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The Next Steps

Action Item Target Deadline

Proposal Submission Week: 0

Proposal Discussion Week: 1

Sign off MOU/HOA on Engagement Week: 2

Submission of Engagement Documents Week: 5

Engagement Discussions Week: 7

Sign off IDMA Week: 8

Launch Phase One: Project Realization Week: 9

Close out of Phase One Week: 20

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Thank You..!