Specialist Studies PDF

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 Date Author Checked Status Approved
01 13th Sept 2012 AMM GAM
KEYWORDS: Harding, fuel, petrol, diesel, station, turnover, convenience store
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Contents
Introduction ....................................................................................................................................................... 3
Section 1: Broader Context ............................................................................................................................... 4
1.1 Situational Analysis............................................................................................................................ 4
1.2 Development Context ....................................................................................................................... 4
1.3 The Impact of the Shopping Centre and other Developments on Demand...................................... 5
Section 2: Economic Analysis ............................................................................................................................ 5
2.1 Economic Impact of the Proposed Service Station ........................................................................... 5
2.2 Background to the Multiplier Analysis .............................................................................................. 6
2.3 The Construction Phase ..................................................................................................................... 7
2.4 The Operational Phase .................................................................................................................... 10
2.5 Impact on Gross Domestic Product ................................................................................................. 12
2.6 Impact on Employment and Labour Remuneration ........................................................................ 13
2.7 Summary of General Impacts .......................................................................................................... 15
2.8 The Impact on Local Competitors................................................................................................... 15
2.8.1 Service station market ........................................................................................................... 16
2.8.2 Estimated negative impacts on competitor stations.............................................................. 18
2.9 Mitigation ....................................................................................................................................... 19
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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.
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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
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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.
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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 (once-
off 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
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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 Includes:
Civil Engineering External works, landscaping, road construction
Building & Construction Building work, canopy, landscaping/fencing, signage
Business Services Developer profits, professional fees
Government Services (electrical connection fee)
Machinery & Equipment 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
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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

Direct Indirect Induced Total
Spend Category Input
impact effect effect impact
Civil engineering R614,156 R322,284 R159,943 R240,460 R722,687
Building/construction R2,257,258 R1,116,309 R674,888 R896,216 R2,687,413
Business services R321,251 R238,024 R55,287 R108,636 R401,948
Government R266,449 R214,859 R28,085 R201,475 R444,419
Machinery and
R2,040,887 R982,262 R460,660 R851,497 R2,294,420
equipment
Total R5,500,000 R2,873,737 R1,378,864 R2,298,285 R6,550,886
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 Induced effect Total impact

Spending categories Indirect effect (d)
(c=a+b) (e) (f=c+d+e)
Civil engineering 2.8 0.65 1.1 4.55

Building/construction 5.25 2.95 4.05 12.25
Business services 0.95 0.2 0.5 1.65
Government 1.15 0.1 0.9 2.2

Machinery and
5.5 1.75 3.85 11.05
equipment
Total 15.7 5.65 10.4 31.7
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
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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.
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Table 2.4 Labour Remuneration
Direct Indirect Induced

Labour Remuneration Input Total impact
impact effect effect
Civil engineering R 614,156 R 146,905 R 65,108 R 88,385 R 300,399
Building construction R 2,257,258 R 510,101 R 280,091 R 329,419 R 1,119,611
Business services R 321,251 R 73,388 R 22,396 R 39,931 R 135,716
Government R 266,449 R 165,734 R 11,905 R 74,055 R 251,695
Machinery and
R 2,040,887 R 563,566 R 187,197 R 312,982 R 1,063,745
equipment
Total R 5,500,000 R 1,459,695 R 566,698 R 844,773 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 station’s 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.
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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 Petrol sales Diesel sales Turnover Turnover

stops per (litres) (b )= (litres)(c)=(a) from petrol from diesel Total
year (a) (a)×80%×25 l ×20%×25 l sales sales
Year 1: Fuel 134,400 2,688,000 672,000 R 31,180,800 R 7,190,400 R 38,371,200
Year 2: Fuel 151,200 3,024,000 756,000 R 35,078,400 R 8,089,200 R 43,167,600
Year 3: Fuel 168,000 3,360,000 840,000 R 38,976,000 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 Oil’s
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.
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Table 2.6: Total Turnover of development
Vehicle
Turnover from
stops per Tips Shop turnover Total turnover
fuel sales
year
Year 1: 2013 134400 R 268,800 R 4,800,000 R 38,371,200 R 43,440,000
Year 2: 2014 151200 R 302,400 R 5,184,000 R 43,167,600 R 48,654,000
Year 3: 2015 168000 R 336,000 R 5,443,200 R 47,964,000 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 station’s 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.
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Table 2.7: Annual Impact on GDP
Direct impact Induced effect Total impact

GDP Input Indirect effect (d)
(c=a+b) (e) (f=c+d+e)
Year 1 R 43,440,000 R 32,622,297 R 7,370,504 R 20,032,079 R 60,024,880

Year 2 R 48,654,000 R 36,537,874 R 8,255,168 R 22,436,482 R 67,229,524
Year 3 R 53,743,200 R 40,359,729 R 9,118,658 R 24,783,334 R 74,261,720
Total R 145,837,200 R 109,519,899 R 24,744,330 R 67,251,895 R 201,516,124
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 station’s 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
station’s suppliers (7 jobs) as well as jobs created from the induced effect of households spending their
incomes (24 jobs).
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Minimum Total Annual
Projected
Monthly Salary of Remuneration of
Number of
Employee current Employees (a x b x 12
Jobs (a)
prices (b)* months)
Pump attendants 21 R 2,646.00 R666,792
Cashiers 3 R 2,662.00 R95,832
Shop/food outlet staff 5 R 2,496.00 R149,760
Merchandiser 2 R 2,497.00 R59,928
Admin clerk 2 R 3,154.00 R75,696
Manager 1 R 14,300.00 R171,600
Tips R268,000
Totals 34 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.
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2.7 Summary of General Impacts
Table 2.9: Summary of Annual Impact
Construction Phase Operational Phase Total
Total Total Total
Initial Impact Multiplier Initial Impact Multiplier Multiplier
Impact Impact Impact
Year 1 R2,873,737 R6,550,886 R 32,622,297 R 60,024,880 R 66,575,766
GDP - rands
Year 2 R 36,537,874 R 67,229,524 R 67,229,524
Year 3 R 40,359,729 R 74,261,720 R 74,261,720

Employment - jobs
Year 1 15.7 31.7 34 74 105.7
Year 2 0 0 34 74 74
Year 3 0 0 34 74 74
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 development’s 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 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
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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 Address Straight line distance Distance by road
Caltex Murchison/Hawkins 590m 590m

Engen Murchison 720m 990m
Coastals Holman Street 900m 1300m
Total OIl Staffords Post - N2/R56 13.6km 16.7km
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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 Projected loss by GMA
Fuel Service Station Volume Staff retrenchment Volume Staff retrenchment
Caltex 250000 l 15 jobs 125000 l 8 jobs
Engen 30000l 4 jobs 50000 l 5 jobs
Coastals Nil Nil 5000 l 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 Coastal’s Coop-
6% 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 093m², of which 3000m²

will be rezoned and developed for the purposes of a Service Station.
- Shape: Rectangular-shaped, with measurements of approximately
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
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 (m²) 450 (composite building 1 800)
Coverage (%) 80
Maximum Height (Storeys) 3
Floor Area Ratio 1,0
Permitted Free Entry Uses Commercial Workshop
__________________________________________________________________________________________________________
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 (m²) 450
Coverage (%) 60
Maximum Height (Storeys) 2
Floor Area Ratio 0,4
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.
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 000m² 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: PREPARED FOR:

AURECON SA (PTY) LTD Twin Cities Trading 392 (Pty) Ltd
P O Box 932 P O Box 1593
PINETOWN Hillcrest
3600 3650
CONTACT PERSON: CONTACT PERSON:

Mr Rishaal Sahadew Kerry Quinn
Tel no: +27 (071) 6877 131 Tel no: +27 (031) 767 5896
Document Verification Sheet i Aurecon SA (Pty) Ltd
Project Title Project Number
Proposed Petrol Filling Station in Harding 107371/Harding PFS
Document Title Traffic Impact Statement for a Proposed Petrol Filling Station in Harding
File Reference
Date
Version Filename Harding Petrol Filling Station_TIS_RS
(dd/mm/yy)
st
Description TIS for a Proposed Petrol Filling Station in Harding – 1 Draft
Prepared by Reviewed by Approved

1 18/08/2011
Name R Sahadew D Kellock M van Tonder
Signature
Date
Version Filename
(dd/mm/yy)
Description
Name
Signature
Date
Version Filename
(dd/mm/yy)
Description
Name
Signature
Date
Version Filename
(dd/mm/yy)
Description
Name
Signature
Traffic Impact Statement for a Proposed Project No. 107371

Petrol Filling Station in Harding August 2011
ii
Table of Contents
LIST OF ACRONYMS .................................................................................................. III
1. INTRODUCTION .................................................................................................... 1
2. LOCATION OF THE PETROL FILLING STATION ................................................ 1
3. EXISTING TRAFFIC CONDITIONS ....................................................................... 1
3.1 Hawkins Street .......................................................................................................................... 1
3.2 Livingstone Street ...................................................................................................................... 3
3.3 Hancock Street .......................................................................................................................... 3
3.4 Kirk Street ................................................................................................................................. 3
3.5 Traffic Counts ............................................................................................................................ 3
3.6 Existing Pedestrian Activity ....................................................................................................... 5
3.7 Public Transport Facilities .......................................................................................................... 5
4. TRAFFIC GENERATION OF THE PROPOSED PETROL FILLING STATION ...... 5
5. FINDINGS OF THE TIA FOR THE PROPOSED SHOPPING CENTRE

ADJACENT THE PROPOSED PETROL FILLING STATION ................................ 5
6. IMPACT OF THE TRAFFIC GENERATED BY THE PROPOSED PETROL

FILLING STATION ................................................................................................ 6
7. CONCLUSIONS AND RECOMMENDATIONS ...................................................... 6
8. BIBLIOGRAPHY .................................................................................................... 7

iii
LIST OF ACRONYMS
KZN DOT KwaZulu-Natal Department of Transport

LOS Level of Service
TIA Traffic Impact Assessment
TIS Traffic Impact Statement
GLA Gross Leasable Area
Veh/h Vehicles per Hour

1
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.

2

3
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 traffic-
generating 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.

4

5
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 Engineer’s 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.

6
 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.
6. IMPACT OF THE TRAFFIC GENERATED BY THE PROPOSED PETROL

FILLING STATION
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).

7
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.

8
ANNEXURE A

9

GEOHYDROLOGICAL ASSESSMENT FOR
PROPOSED PETROL FILLING STATION AT
HARDING, KWAZULU-NATAL
REFERENCE 41205R01
FINAL REPORT
March 2012
Prepared for: Prepared by:
Zeranza 311 (Pty) Ltd Terratest (Pty) Ltd
6 Northside, 19 Intengu Avenue, Kloof, 3610 13 The Boulevard, Westway Office Park, 3629
PO Box 880, Hillcrest, 3650 PO Box 2762, Westway Office Park, 3635
Tel: 076 642 2722; Fax: 086 664 7722 Tel: 031 275 5500; Fax: 031 265 8255
Email: kerry@amberdawn.co.za 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.: DATE: REPORT STATUS:
41205 March 2012 FINAL
CARRIED OUT BY: COMMISIONED BY:
Terratest (Pty) Ltd Zeranza 311 (Pty) Ltd
13 The Boulevard 6 Northside, 19 Intengu Avenue

Westway Office Park Kloof
3629 3610
PO Box 2762, Westway Office Park, 3635 PO Box 880, Hillcrest, 3650
Tel: 031 275 5500; Fax: 031 265 8255 Tel: 076 642 2722; Fax: 086 664 7722
Email: schapersr@jgi.co.za Email: kerry@amberdawn.co.za
AUTHOR: CLIENT CONTACT PERSON:
ROBERT SCHAPERS 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 March 2012

Page i
GEOHYDROLOGICAL ASSESSMENT FOR PROPOSED

PETROL FILLING STATION AT HARDING,
KWAZULU-NATAL
TABLE OF CONTENTS
1. INTRODUCTION ..................................................................................................................1
2. TERMS OF REFERENCE ....................................................................................................1
3. INFORMATION SUPPLIED ..................................................................................................2
4. SITE DESCRIPTION ............................................................................................................3
5. SITE INVESTIGATION .........................................................................................................3
5.1 Introduction ...........................................................................................................................3
5.2 Desk Top Study ....................................................................................................................3
5.2.1 Geology and Structural Geology........................................................................................3
5.2.2 Geohydrology ....................................................................................................................4
5.2.3 Existing Groundwater Resources ......................................................................................4
5.3 Site Assessment and Hydrocensus.......................................................................................5
5.4 Geophysical Survey ..............................................................................................................9
5.5 Aquifer Assessment ..............................................................................................................9
5.5.1 Water Quality Status Quo ..................................................................................................9
6. RISK ASSESSMENT AND IMPACT ................................................................................... 11
6.1 Site Geohydrology and Conceptual Model .......................................................................... 11
6.2 Risk Assessment Discussion .............................................................................................. 11
6.2.1 Evaluation of Potential Contaminants .............................................................................. 12
6.2.2 Evaluation of Lining or Barrier ......................................................................................... 12
6.2.3 Evaluation of Underlying Aquifer ..................................................................................... 12
6.2.4 Strategic Value ................................................................................................................ 12
6.3 Risk Assessment Classification .......................................................................................... 13
6.4 Concerns, Impact and Risk Reduction ................................................................................ 13
6.4.1 UST Location .................................................................................................................. 13
6.4.2 Proposed Construction Techniques................................................................................. 14
6.4.3 Proposed Monitoring ....................................................................................................... 15
6.4.4 Other Considerations ...................................................................................................... 15
7. CONCLUSIONS ................................................................................................................. 16

Page ii
APPENDICES
Appendix A: Estimate of Recharge
Appendix B: Results of Percolation Test and Inspection Hole Logs
Appendix C Results of Geophysical Survey
Appendix D: Summary of Results of Laboratory Analysis on Water Sample and
Laboratory Certificates
Appendix E: Risk Assessment Classification
FIGURES
Figure 1: Locality Plan and Hydrocensus Survey Resources
Figure 2: Regional Geology and Structural Features
Figure 3: Regional Geohydrology
Figure 4: Site Plan Showing Field Test Positions and Conceptual Groundwater Flow

Page iii
GEOHYDROLOGICAL ASSESSMENT FOR PROPOSED

PETROL FILLING STATION AT HARDING,
KWAZULU-NATAL
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 March

Page 1
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.
Data
 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.
Drawings
 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.

Page 2
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 KwaZulu-
Natal 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:
 Desktop review
 Site assessment and hydrocensus survey
 Geophysical survey
 Water quality status quo assessment
 Risk assessment and impact analysis.
5.2 Desk Top Study
5.2.1 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

Page 3
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

Page 4
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
Co-ordinates Approximate Final Depth to
DWAF Resource Co-ordinate Discharge
distance from depth Groundwater
No Latitude Longitude Accuracy (m) (l/s)
site (km) (mbgl*) (mbgl*)
3029DB00008 -30.58754 29.90004 unknown 2.6 151 70 -
3029DB00009 -30.58753 29.90003 unknown 2.6 78 6 -
3029DB00010 -30.58752 29.90002 unknown 2.6 90 4 -
3029DB00011 -30.58751 29.90001 unknown 2.6 90.1 29 -
3029DB00012 -30.58750 29.90000 unknown 2.6 109 30 -
3029DB00035 -30.578365 29.857762 100 2.1 18.3 - -
3029DB00036 -30.579745 29.855532 100 2.3 18.3 - -
3029DB00037 -30.578365 29.860262 100 2.5 30.5 - -
3029DB00106 -30.553837 29.896398 unknown 2.5 119.7 - 0.97
* 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.

Page 5
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.

Page 6
Table 5.3: Summary of Hydrocensus Survey Information

SURFACE WATER RESOURCES
Resource S01 Sample Number TRT1091
South East
Co-ordinates
30 34 5.0 S 29 52 6.3 E
Resource Type River
Use -
Depth to GW na
Discharge Rate unknown
Mzimkulwana river sample point

Description located 1km northwest of proposed
site
Resource S02 Sample Number N/A

South East
Co-ordinates
30 34 15.1 S 29 52 35.1 E
Resource Type Standing water
Use -
Depth to GW na
Surface water located 375m west of

proposed site in an area of reed
Description
vegetation, possible shallow
expression of groundwater
Resource S03 Sample Number N/A

South East
Co-ordinates
30 34 1.8 S 29 53 16.7 E
Resource Type Dam
Use Unknown
Depth to GW na
Surface water dam located 900m

northeast of proposed site. Appears
Description to be a series of small holding or
retention dams

Page 7
Table 5.3: Cont..

POTENTIAL POLLUTION SOURCES
Source P01
South East
Co-ordinates
30 33 51.4 S 29 53 13.0 E
Pollution Type Sewage treatment plant
Impact on
Biological and bacteriological
Groundwater
Pollution source located

downslope (laterally) from
proposed site. Pollution source
Description
may be impacting on the water
quality of the Mzimkulwana
River.
Source P02
South East
Co-ordinates
30 34 35.1 S 29 52 49.4 E
Pollution Type Petrol filling station
Impact on
Physical chemistry
Groundwater
Pollution source located upslope

of proposed site. Pollution
Description
source may be impacting on the
groundwater quality.
Source P03
South East
Co-ordinates
30 34 35.9 S 29 53 3.2 E
Pollution Type Petrol filling station
Impact on
Physical chemistry
Groundwater

Description
Source P04
South East
Co-ordinates
30 34 56.5 S 29 52 41.3 E
Pollution Type Timber treatment plant
Impact on
Physical chemistry
Groundwater

Description

Page 8
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.

Page 9
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
Screening
Compound Unit S01
Guideline Limit*
Total coliforms Count per 100mL ≤10 248
E.Coli Count per 100mL not detected 62
Turbidity NTU ≤5 5.1
Iron mg/L ≤0.3 0.83
*SANS241 Drinking Water Standards

Page 10
Table 5.5.1b: Summary of Aesthetic and Human Health Effects on Selected Compounds
Compound Aesthetic Effects Human Health Effects
Total - gastroenteritis, salmonellosis, dysentery,
- microbial growth
Coliforms cholera and typhoid fever
- microbial infection and infectious
disease transmission
E.Coli - none
- causes gastro-intestinal disease,
diarrhoea
- objectionable appearance, taste and
odour
- none, however may enhance microbial
- may enhance absorption of organic
Turbidity growth and result in bacteria and virus
compounds, making them difficult to
counts
detect in regular water analysis
- increased disease transmission
- unpalatable
- tissue damage caused by
Iron - slime coatings from iron bacteria
haemachromatosis
- staining and discolouring
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.

Page 11
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 (LNAPL’s). LNAPL’s 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

Page 12
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.
Overall Risk Based on Aquifer

Stage 1 : Assessment of Aquifer Vulnerability
Vulnerability and Contaminant Load
Vulnerability of aquifer due to
LOW
geohydrological conditions
LOW to MEDIUM
Vulnerability due to flow rate and
LOW to MED
contaminant load
Stage 2 : Strategic Classification of the Groundwater Strategic Risk
Strategic value LOW

LOW
Relevance of threats of
LOW to MED
contaminants
Aquifer Vulnerability LOW to MEDIUM

Risk Assessment Summary
Aquifer Strategic Value 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 (UST’s), 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.

Page 13
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 professional’s 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
1
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
Page 14
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 UST’s 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 LNAPL’s. 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.

Page 15
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:

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 UST’s 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.
UST’s 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.

Page 16
First Estimate of Recharge

Appendix Page 1

Appendix Page 2
Results of Percolation Test and Inspection Hole Logs

Appendix Page 3

Appendix Page 4

Appendix Page 5

Appendix Page 6
Results of Geophysical Survey

Appendix Page 7

Appendix Page 8

Appendix Page 9

Appendix Page 10

Appendix Page 11

Appendix Page 12

Appendix Page 13

Appendix Page 14
Summary Results of Laboratory Analysis on Water Samples

And Laboratory Certificates

Appendix Page 15

Appendix Page 16

Appendix Page 17
Risk Assessment Classification

Appendix Page 18
ASSESSMENT OF AQUIFER VULNERABILITY
Table E1.1: Vulnerability of Aquifer due to Geohydrological Conditions

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

Impact of contaminants on normal flow through
Typical Typical Factor affecting flow rate
unsaturated and saturated zones
hydraulic time (d) to Risk Level
filtration and dilution in
output travel 1m Contaminant Load flow rate
adsorption saturated zone
Potentially high but can be
Natural
~250mm/d
~4 mitigated by construction to low reasonable Not applicable LOW to MEDIUM
SABS standards
Table E1.3: Overall Risk Based on Aquifer Vulnerability and Contaminant Load
Contaminant load risk
high Medium minimal
very high
high high
(obtain alternative water
Extreme (implement remedial (implement remedial
source or ensure adequate
measures) measures)
treatment of groundwater)
high high medium

High (implement remedial (implement remedial (take precautionary
measures) measures) measures)
Aquifer Vulnerability
high medium
low
Medium (implement remedial (take precautionary
(no action required)
measures) measures)
medium
low minimal
Low (take precautionary
(no action required) (no action required)
measures)
low minimal minimal

Negligible
(no action required) (no action required) (no action required)

Appendix Page 19
STRATEGIC CLASSIFICATION OF THE GROUNDWATER
Table E2.1: Strategic Value of Groundwater and Risk of Impact

Strategic value
Groundwater Potential Relevance of threat of contaminants Strategic Risk
Use (present Yield Comment
or future) (Ml/d)
Currently used >2km
Medium risk; aesthetic and health risks associated
upslope from site,
Domestic use < 0.1 with potential contamination of groundwater which
may have future
may be ingested, ongoing monitoring required
value closer to site
Agricultural use Currently not used,

Medium risk; ongoing monitoring in terms of stock
(animal drinking < 0.1 but may have future
watering limits to be carried out LOW
water) value
Agricultural Currently not used, Low Risk; some crops may be sensitive, Ongoing
(irrigation) or < 0.1 but may have future monitoring required to determine long term crop
industrial use value absorption impact
SUMMARY
Table E3: Risk Assessment Summary

Appendix Page 20
Figure 1: Locality Plan and Hydrocensus Survey Resources

Figure 2: Regional Geology and Structural Features
Figure 3: Regional Geohydrology
Figure 4: Site Plan Showing Field Test Positions and Conceptual
Groundwater Flow

Figures Page 1

Figures Page 2

Figures Page 3

Figures Page 4

Figures Page 5

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Economic Impact Study for a

Proposed Fuel Service Station

Report prepared by:

Report No. 10/01

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

Section 1: Broader Context ............................................................................................................................... 4

1.1 Situational Analysis............................................................................................................................ 4

1.2 Development Context ....................................................................................................................... 4

Section 2: Economic Analysis ............................................................................................................................ 5

2.1 Economic Impact of the Proposed Service Station ........................................................................... 5

2.2 Background to the Multiplier Analysis .............................................................................................. 6

2.3 The Construction Phase ..................................................................................................................... 7

2.4 The Operational Phase .................................................................................................................... 10

2.5 Impact on Gross Domestic Product ................................................................................................. 12

2.6 Impact on Employment and Labour Remuneration ........................................................................ 13

2.7 Summary of General Impacts .......................................................................................................... 15

2.8 The Impact on Local Competitors................................................................................................... 15

2.8.1 Service station market ........................................................................................................... 16

2.8.2 Estimated negative impacts on competitor stations.............................................................. 18

2.9 Mitigation ....................................................................................................................................... 19

1.1 Situational Analysis

1.2 Development Context

Section 2: Economic Analysis

2.1 Economic Impact of the Proposed Service Station

2.3 The Construction Phase

Table 2.1: Breakdown of Construction Costs

Table 2.2: Annual Impact on GDP

Table 2.3: Impact on Employment

Direct impact Induced effect Total impact

Civil engineering 2.8 0.65 1.1 4.55

Business services 0.95 0.2 0.5 1.65

Government 1.15 0.1 0.9 2.2

Direct Indirect Induced

Civil engineering R 614,156 R 146,905 R 65,108 R 88,385 R 300,399

Building construction R 2,257,258 R 510,101 R 280,091 R 329,419 R 1,119,611

Business services R 321,251 R 73,388 R 22,396 R 39,931 R 135,716

Government R 266,449 R 165,734 R 11,905 R 74,055 R 251,695

Total R 5,500,000 R 1,459,695 R 566,698 R 844,773 R 2,871,166

2.4 The Operational Phase

Table 2.5: Projected fuel sales per quarter

Vehicle Petrol sales Diesel sales Turnover Turnover

Year 1: Fuel 134,400 2,688,000 672,000 R 31,180,800 R 7,190,400 R 38,371,200

Year 2: Fuel 151,200 3,024,000 756,000 R 35,078,400 R 8,089,200 R 43,167,600

Year 3: Fuel 168,000 3,360,000 840,000 R 38,976,000 R 8,988,000 R 47,964,000

Year 1: 2013 134400 R 268,800 R 4,800,000 R 38,371,200 R 43,440,000

Year 2: 2014 151200 R 302,400 R 5,184,000 R 43,167,600 R 48,654,000

Year 3: 2015 168000 R 336,000 R 5,443,200 R 47,964,000 R 53,743,200

2.5 Impact on Gross Domestic Product

Direct impact Induced effect Total impact

Year 1 R 43,440,000 R 32,622,297 R 7,370,504 R 20,032,079 R 60,024,880

2.6 Impact on Employment and Labour Remuneration

Year 2 R 36,537,874 R 67,229,524 R 67,229,524

Year 3 R 40,359,729 R 74,261,720 R 74,261,720

Year 1 15.7 31.7 34 74 105.7

2.8 The Impact on Local Competitors

2.8.1 Service station market

Caltex Murchison/Hawkins 590m 590m

2.8.2 Estimated negative impacts on competitor stations

TOWN PLANNING REPORT

PART OF PORTION 3 OF ERF 101 HARDING

- Extent: The total extent of Portion 3 is 8 093m², of which 3000m²

1.2.1. Current Zoning: “General Commercial”

The pertinent controls applicable to the present zoning are as follows: -