Rustenburg Extension 31 Filling Station

Rustenburg Extension 31

Filling Station

Lakeview Office Park, 137 Muckleneuk Drive

Brooklyn, Pretoria

[email protected]

Tel: +27 12 342 8686

Fax: +27 12 342 8688

Proposed Rustenburg Ext 31: Filling Station SEPTEMBER 2016

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Contents

1. Introduction .......................................................................................................................................... 1

1.1. Project Brief .................................................................................................................................. 1

1.2. Approach ....................................................................................................................................... 1

1.3. Geographic Location ..................................................................................................................... 2

1.4. Report Outline............................................................................................................................... 3

2. Spatial Analysis ...................................................................................................................................... 3

2.1. Macro Spatial Analysis .................................................................................................................. 3

2.1.1. Location ................................................................................................................................. 4

2.1.2. Regional Connectivity ........................................................................................................... 5

2.2. Micro Spatial Analysis ................................................................................................................... 6

2.2.1. Micro Locality ........................................................................................................................ 6

2.3. Traffic Volume, Visibility and Exposure ...................................................................................... 12

2.3.1. R510 .................................................................................................................................... 12

3. Market Potential Analysis ................................................................................................................... 12

3.1. Market Demand Analyses ........................................................................................................... 12

3.1.1. Method................................................................................................................................ 13

3.1.2. Factors utilized to calculate market demand...................................................................... 13

3.2. Market Supply Analysis ............................................................................................................... 16

3.2.1. Location of existing filling station ....................................................................................... 16

3.2.2. Number of fuel pumps of existing filling stations ............................................................... 19

3.2.3. Facilities of existing filling stations ...................................................................................... 20

3.3. Implications ................................................................................................................................. 21

4. Recommendations and Conclusions ................................................................................................... 22

4.1. Summary of Key Findings ............................................................................................................ 22

4.2. Recommendations ...................................................................................................................... 22

4.3. Conclusion ................................................................................................................................... 22

List of Diagrams

Diagram 1-1: Approach used ........................................................................................................................ 1 Diagram 1-2: Report Outline ......................................................................................................................... 3 Diagram 2-1: Site A, Left-in: Off-ramp .......................................................................................................... 7 Diagram 2-2: Left-out - Site A ....................................................................................................................... 8 Diagram 2-3: Site A - Right - in ...................................................................................................................... 8 Diagram 2-4: Right-out - Site A ..................................................................................................................... 8


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Diagram 2-5: Left-in – Site B ......................................................................................................................... 9 Diagram 2-6: Left-out - Site B........................................................................................................................ 9 Diagram 2-7: Right-in – Site B ....................................................................................................................... 9 Diagram 2-8: Right-out - Site B ................................................................................................................... 10 Diagram 2-9: Site A: Exposure from South to North ................................................................................... 10 Diagram 2-10: Site A: Exposure from North to South ................................................................................. 11 Diagram 2-11: Site B: Exposure from South to North ................................................................................. 11 Diagram 2-12: Site B: Exposure from North to South ................................................................................. 11

List of Maps

Map 1-1: Geographical Location ................................................................................................................... 2 Map 2-1: Rustenburg Local Municipality in Context with The District Municipality .................................... 4 Map 2-2: Rustenburg Ext 31 Location ........................................................................................................... 5 Map 2-3: Regional Connectivity .................................................................................................................... 5 Map 2-4: Micro Location ............................................................................................................................... 6 Map 2-5: Micro Locality of proposed sites ................................................................................................... 6 Map 2-6: Proposed location of Filing Station ............................................................................................... 7 Map 3-1: Filling station supply on R510 ...................................................................................................... 16 Map 3-2: Current filling station supply ....................................................................................................... 16

List of Tables

Table 3-1: Total vehicles passing proposed filling station per 24 hrs. ........................................................ 14 Table 3-2: Total vehicles passing proposed filling station per month (28 days) ......................................... 15 Table 3-3: Pump Volume Per Month .......................................................................................................... 15 Table 3-4: Filling Station Supply .................................................................................................................. 17 Table 3-5: Number of Pumps and Nozzles .................................................................................................. 20 Table 3-6: Auxiliary Functions of Filling Stations ........................................................................................ 21


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1. Introduction

Urban-Econ was approached by Safari Investment to compile a market feasibility study that assess the development potential of a filling station in close proximity of the Rustenburg CBD. The investigation was purposed to supplement a town planning application for Business 1 development rights as specified in the Rustenburg Local Municipality Town Planning Scheme inclusive of light-industrial, industrial, filling station, motor-related retail and residential development options. The study establishes the extent of present and future market demand for a filling station within the study area in order to ascertain the need for such a development. The investigation is based on existing data, both published and from past project experience. Primary research involved site visits to obtain insight into relevant trends and indicators within the study area.

1.1. Project Brief

The purpose of this study is to provide an independent specialist analysis on the capacity of the local market to sustain a filling station development and convenience store. To illustrate the construction of a filling station with underground fuel tanks providing both diesel and petrol pumps, a development concept is used. The proposed filling station would also include a convenience store and restrooms with the viability of auxiliary services being explored in this study.

The following components will determine the said outcome of the market study demand:

o Accessibility; o Traffic Volume; o Determination of supply and demand; and o Critical success factors and recommendations.

1.2. Approach

For the approach to be successful and complete, the steps that need to be followed are explained in Diagram 1-1.

Diagram 1-1: Approach used


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1.3. Geographic Location

The proposed development site is located within the Bojanala District Municipality within the North West Province. The Rustenburg Local Municipality (RLM) is located in the lower middle part of the district municipality. Map 1-1 illustrates the location of the districts and local municipalities in relation with the North West Province.

Map 1-1: Geographical Location

Source: ArcGIS Explorer, 2016


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1.4. Report Outline

This sub-section provides a clear explanation of the report structure and how each section contributes to the conclusion and recommendations made at the end of the report. This structure is followed in order to ensure that each aspect is explored and analysed in order for the best possible outcome to be reached.

Section 1 to Section 5 is explained in Diagram 1-2 illustrated in this sub-section.

2. Spatial Analysis

A development’s potential and success is connected to the specific characteristics and attributes of the proposed site. An analysis of the features is done to identify noticeable development effects and the degree of influence on the probable success of the proposed development.

Site evaluation inputs are also used to determine a site-appropriate market area delineation. The following factors are addressed by the spatial analysis:

Macro context o Geographical Location o Regional Connectivity

Micro context o Micro Locality

Feasibility of identified sites Accessibility of identified sites

o Surrounding Accessibility

2.1. Macro Spatial Analysis

The analysis of the site in a macro context highlights the proposed site in relation to the greater spatial environment in which it exists. The connections of the site to the rest of the surrounding areas are essential to analyses in order to illustrate the expected movement of people to and from the site.

Diagram 1-2: Report Outline


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2.1.1. Location The proposed development site is located within the Bojanala District Municipality within the North West Province. The RLM is located in the lower middle part of the district municipality. Map 2-1 illustrates the location of the local municipality within the Province.

Map 2-2. represents the Rustenburg Ext 31 location.

Map 2-1: Rustenburg Local Municipality in Context with The District Municipality

Source: ArcGIS Explorer, 2016


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The Rustenburg Ext 31 is proposed to be the catalyst of the envisioned Rustenburg Ext 31 development. In addition, the new decentralised node could also encourage corridor development to the south of the proposed node, which will help sustain the proposed filling station development.

2.1.2. Regional Connectivity Regional accessibility illustrates the level of access to and from the proposed development site by means of various transport routes. The success of a filling station is dependent on the level of accessibility, visibility, and exposure of the site to passing traffic, as well as the site’s potential of capturing transient traffic.

The proposed site for the development is located north-east of the Rustenburg CBD. The site is located alongside the route R510 as

illustrated on Map 2-3. The R510 connects with the N4 national route, which links the residents of Rustenburg with the Tshwane Metropolitan area (towards the east). The R510 also serves as a feeder route for all the surrounding informal settlements alongside the route. Points of interest are also located alongside the R510 such as the Boitekong Mall and Rustenburg Platinum Mines. These access points bode well for the proposed development as residents from surrounding land uses will be able to easily access the proposed filling station.

It is evident from Map 2-3 that the site is well

located in terms of major transport routes to

benefit from transient traffic passing from

Tsitsing to Rustenburg CBD and vice versa via

the R510. The R510 also provides good regional

access to abutting surrounding settlements.

Map 2-2: Rustenburg Ext 31 Location

Source: Google Earth, 2015

Map 2-3: Regional Connectivity

Source: Google Earth, 2016


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2.2. Micro Spatial Analysis

An analysis of the site on a micro level is ideally used to identify factors influencing the proposed site directly. These factors have the potential to add value and positively influence the land-uses proposed for development on the identified site.

2.2.1. Micro Locality The proposed site is located alongside the R510, also known as Beneden street. The site for the filling station is adjacent the proposed Rustenburg Ext 31 development compromising of various complementing land uses. The Rustenburg Ext 31’s entire area that is earmarked for development compromises of approximately 80.1 ha. The site specific characteristics and attributes play an important role in guiding the development of the proposed

filling station. The following sub-sections provide an analysis of important factors that would influence the success of the proposed development.

a. Two potential sites identified Map 2-5 illustrates the two identified sites that will most likely best sustain the filling station. The two sites were selected by various professionals such as the traffic engineers from Nyeleti Consulting.

The proposed filling station will be located adjacent a future intersection (a proposed 30m street and the current R510 intersection) that provides settlements and towns to the north and south access to the R510. During the consultations, Nyeleti Consulting identified two possible locations, which will provide the most optimal location for the proposed filling station as illustrated in Map 2-5.

The two identified location are adjacent from one another and serves as ideal locations for the proposed development as illustrated in Map 2-6.

Source: Open Street Map, 2016

Map 2-4: Micro Location

Map 2-5: Micro Locality of proposed sites

Source: MetroPlan Town Planners and Urban Designers, 2016

A B


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b. Accessibility of identified sites Accessibility refers to the level of access to the proposed development site by means of different modes of transport. The sustainability of the proposed development is dependent on proper traffic flow along with access to various potential access points. Nyeleti Consulting identified two possible locations for the proposed filling station as discussed. For the proposed development to be feasible, accessibility plays a major role. As both sites are adjacent the R510, the sites will both have access from the R510. Although, site A (as identified in Map 2-6), will provide better accessibility for travellers on the R510 due to the access proved by the Left-in and Left-out options as discussed below:

i. Site A: Left – In With reference to Diagram 2-1, site A has better associability from a left-in perspective as traffic flowing from south to north will have an off-ramp entrance.

Map 2-6: Proposed location of Filing Station

Source: MetroPlan Town Planners and Urban Designers, 2016

A

B

Diagram 2-1: Site A, Left-in: Off-ramp

A

B


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ii. Site A: Left – Out With reference to the traffic flowing from south to north on the R510, vehicles will have better access from site A to join the ongoing flow of traffic moving north.

iii. Site A: Right – In For traffic flowing from north to south, access will be different as access is gained through means of a right turn in as illustrated in Diagram 2-3. For traffic to gain access to site A in the most feasible way, a traffic light is required to ensure the flow of traffic is not disrupted.

iv. Site A: Right – Out As illustrated in Diagram 2-4, for vehicles from site A to rejoin the flow of traffic in the most feasible way, a traffic light is also required as suggested with the right-in for site A.

A

B

A

B

A

B

Diagram 2-2: Left-out - Site A

Diagram 2-3: Site A - Right - in

Diagram 2-4: Right-out - Site A


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v. Site B: Left – In Diagram 2-5 represents the possibility of left-in access to site B. For the access to be successful, a left turn in is required. A traffic light will assist with managing the traffic flow although it is not necessary for a left turn of this level.

vi. Site B: Left – Out Diagram 2-6 represents the possibility of left-in access to site B. For the access to be successful, a left turn in is required. A traffic light will assist with managing the traffic flow although it is not necessary for a left turn of this level.

vii. Site B: Right – In As seen in Diagram 2-7, for vehicles to gain access to site B from traveling from north to south, it is required to make use of a right turn in. For traffic flow to be least disturbed, a traffic light is required.

A

B

A

B

A

B

Diagram 2-5: Left-in – Site B

Diagram 2-6: Left-out - Site B

Diagram 2-7: Right-in – Site B


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viii. Site B: Right – Out Diagram 2-8 represents the possibility making use of a right turn from site B to regain access to traffic flowing from north to south. For the access to be successful, a right turn in is required. A traffic light will assist with managing the traffic flow although it is not necessary for a right turn of this level.

Therefore, with reference to Diagram 2-1 to Diagram 2-8, traffic accessibility is more sufficient to and from site A compared to site B; thus, it would be advised that site A’s possibilities of development should be further explored.

c. Exposure of identified sites One of the key elements for the filling station to be successful is to be exposed for the ongoing traffic on the R510. The two identified sites will be analysed according to the level of exposure from traffic flowing from north to south and from south to north.

i. Site A: Exposure from South to North With reference to Diagram 2-10, site A has good exposure from traffic flowing from south to north as travellers will have a good visual indication of the filling station from a far.

A

B

A

B

Diagram 2-8: Right-out - Site B

Diagram 2-9: Site A: Exposure from South to North


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ii. Site A: Exposure from North to South With reference to the traffic flowing from south to north on the R510, vehicles will have reasonable exposure of the filling station on site A. This is due to the angle the R510 is developed creating more exposure time over a longer distance.

iii. Site B: Exposure from South to North For traffic flowing from south to north, exposure will be more difficult for the filling station on site B as illustrated in Diagram 2-11. Exposure is only at its peak when the traffic flow is halfway past the site therefore, creating the risk of driving past the filling station.

iv. Site B: Exposure from North to South As illustrated in Diagram 2-12, exposure for site B is very short from the flow of traffic moving from north to south. Due to the angle of the R510 route, a short exposure is not deemed feasible as travellers will only have full exposure of the filling station after passing the right turn in.

A

B

A

B

Diagram 2-12: Site B: Exposure from North to South

Diagram 2-10: Site A: Exposure from North to South

Diagram 2-11: Site B: Exposure from South to North

A

B


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d. Recommended Site Option Due to the various identified factors influencing the best optimal choice of developing the proposed filling station, it is advised that site A be used. This is due to the fact that site A has the best sustainable accessibility for traffic from the north heading towards the south, and from the south to north. In terms of exposure, site A also has the upper hand due to the angle of the R510 route, ensuring longer exposure for travellers. Therefore, because of the good access and exposure, site A will ensure higher interception compared to site B.

2.3. Traffic Volume, Visibility and Exposure

As mentioned, the proposed filling station is located along the R510 that provides sufficient accessibility to potential customers.

2.3.1. R510 The R510 is used as a major route connecting residents from the Boitekong area with the Rustenburg CBD. A traffic impact study found that the daily transient traffic from north to south along the R510 amounted to 13 080 vehicles, with a morning peak traffic count of 1 286 vehicles and afternoon peak traffic count of 929 vehicles. Traffic from south to north along the R510 amounted to a total of 13 788 vehicles with a morning peak traffic count of 1 120 vehicles and afternoon peak traffic count of 1 841 vehicles. Morning and afternoon peak traffic presenting high traffic numbers, suggests that the proposed filling station would experience similar exposure during both morning and afternoon peak times from the R510. Consequently, the proposed filling station would benefit greatly from the high exposure generated by the intersection.

3. Market Potential Analysis

Demand is determined by estimating the volume of fuel sales that can be generated at the new filling station. The following sub-sections will provide an overview of existing supply within the study area as well as an estimate of the potential fuel sales at the new filling station based on traffic counts informed by Nyeleti Consulting.

3.1. Market Demand Analyses

The market demand analysis sets out to calculate the demand for fuel within the study area. A number of factors are taken into account when determining the demand for fuel. The following factors were utilised to calculate the market demand for fuel.

Interception rate; Average fill; and Number of light and heavy vehicles passing the proposed development site along the R510 route

per month (28 days).

Figure 2-1: R510 traffic volumes - 12 hours

Source: Nyeleti Consultants, Traffic Count, 2016


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3.1.1. Method In order to determine the development potential of a new filling station it is necessary to calculate the total demand for fuel by passing traffic. Counts for traffic provided by Nyeleti Consulting, in conjunction with the interception rates were utilised to calculate the number of potential customers that the proposed filling station would attract. The number of potential light and heavy vehicles were calculated based on traffic counts conducted by Nyeleti Consulting for the R510 route which informed the demand calculation model. The South African Trip Generation rates also state that approximately 81.8% of vehicles visiting a filling station, purchase fuel. This figure was applied to the demand model to estimate a conservative number of potential customers who would purchase fuel at the proposed filling station. The number of vehicles that would potentially purchase fuel were multiplied with the relevant average fill figures to calculate the potential total monthly pump volumes of the proposed filling station.

The following equation illustrates the method utilized to calculate the demand for fuel:

Dpv = f(v; s; af; d)

“Dpv” represents fuel volumes; “v” indicated the number of passing vehicles; “s” depicts the interception rate (%); “af” illustrates the average fill; and “d” represents the number of days.

3.1.2. Factors utilized to calculate market demand This sub-section will explore the various factors affecting demand calculations for the proposed filling station.

a. Light and Heavy Vehicle Transient Traffic Transient light and heavy vehicle traffic refers to the total number of vehicles passing the development site at the R510 in a 24-hour period. The total number of transient traffic was obtained from a traffic count conducted by Nyeleti Consulting in 2016 and utilised to project future traffic counts for 2036. These traffic counts were utilised in the demand model to calculate current and future demand for fuel. Table 3-1 to Table 3-5 presents the findings from the traffic impact study conducted by Nyeleti Consulting.

b. Interception Rate The inception rates utilised for the purpose of the analysis are based on the ‘Revision of the Guidelines for access to filling Stations’ compiled by JL Coetzee, F Van Rensburg and H Schreurs (2001). The relationship between inception rates and traffic volumes is argued to oppositely vary in context to the magnitude of the transient traffic volume i.e. the inception rate declines with an increase in transient traffic.

Figure 3-1 indicates the relationship between the interception rate and traffic volumes as derived from the Coetzee et al model, which is based on a multiple regression.


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The interception rate is defined as the percentage of transient traffic that would turn into the proposed filling station. A conservative estimate of the number of vehicles that would turn into the proposed development was used. The interception rate was calculated to be 1.5% in 2016 and 1.3% by 2036. These interception rates are used in the demand calculations to estimate the total number of potential customers visiting the proposed filling station. The following assumptions are made with regard to the interception rates:

Existing filling stations along the R510 were taken into account when the interception rates were calculated; and

Interception rates take into account all supply factors.

c. Average Fill Average fill refers to the average amount of fuel that a given vehicle will purchase when stopping at a filling station. Depending on the type of vehicle, the average fill differs for light and heavy vehicles. Average fill figures for vehicles travelling on roads, as calculated by the South African Trip Generation rates, are as follows:

31.88 litres per car; 45 litres per taxi; 165 litres per bus; and 187.50 litres per truck.

Table 3-1 to Table 3-3 presents the calculations for fuel demand by vehicles visiting the proposed filling station.

With reference to Table 3-1, it was assumed that the vehicle type distribution will remain constant for

future projections.

Table 3-1: Total vehicles passing proposed filling station per 24 hrs.

Figure 3-1: Relationship between inception rates and traffic volumes 2001

Source: Revision Guidelines for access to filling Stations, 2001


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It is evident from Table 3-3 that the gross fuel demand for 2016 is calculated at 506 780 litres per month.

This figure is the estimated gross volume of fuel demand expected for any given month. It should be noted

that the total demand for fuel is greatly influenced by the interception rate and it is assumed that the

interception rate takes into account the potential customers to purchase fuel at the proposed filling

station. It is therefore, anticipated that the gross demand would not be significantly influenced by existing

supply.

Table 3-2: Potential Customers per month

Table 3-3: Pump Volume Per Month


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3.2. Market Supply Analysis

A supply audit of existing filling stations in the region was conducted in order to determine the effective competitive supply. The effective competitive supply refers to other filling stations present within the region that are expected to compete with the proposed filling station and its auxiliary functions. The purpose of this sub-section is to summarise the findings of the filling station supply audit that was conducted by in September 2016.

The following aspects will be addressed by the Market Supply Analysis regarding the existing filling stations located within the area:

Geographical location of existing filling stations; Projection of fuel volumes sold by existing filling stations; and Auxiliary functions available at each filling station.

3.2.1. Location of existing filling station The RLM has a vast variety of filling stations scattered across the municipality. The majority of filling stations are situated in close proximity of the Rustenburg CBD. Two or more filling stations were identified in the surrounding suburbs. Map 3-2 illustrates the geographical location of existing filling stations and Map 3-1 illustrates the current two identified filling stations on the R510. Map 3-2: Current filling station supply

Source: Google Earth, Site Visits, 2016 Source: Google Earth, Site Visits, 2016

Map 3-1: Filling station supply on R510


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Table 3-4: Filling Station Supply

Engen

Location: c/o R510 & Tlou street Pumps: 6 Pumps 21 Nozzles Auxiliary Function: Convenience Store Restrooms 5 x non-permanent ABSA ATM’s Meat Market Medical Facility Local Restaurant Capitec bank Branch Internet Café Motor Spares Shop Perfect Water Distance from site: 738.19 meters

Elegant Fuel (Previously Shell)

Location: R510 Pumps: 7 Pumps 30 Nozzles Auxiliary Function: Convenience Store Restrooms Financial Services Cellphone repair shop Takeaway/Spaza Shop Hardware Shop Car wash Postal Services Motor Driving School Motor Spares shop Distance from site: 1.95 km

Engen

Location: c/o Beneden Street & Oliver Tambo Drive Pumps: 6 Pumps 14 Nozzles Auxiliary Function: Convenience Store Restrooms KFC Drive-Through Distance from site: 5.14 km


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BP Ultimate

Location: Petunia Street Pumps: 3 Pumps 6 Nozzles Auxiliary Function: Convenience Store Electronic Repairs Kitmat Bakery Takeaway/Spaza Shop Hair Salon Motor Spares Shop Distance from site: 5.6 km

CAJ Fuel Stop Location: Petunia Street Pumps: 4 Pumps 16 Nozzles Auxiliary Function: Convenience Store Restrooms Gigas Motors Standard Bank ATM Distance from site: 5.7 km

Caltex

Location: c/o Oliver Tambo Drive & Leyds street Pumps: 5 Pumps 32 Nozzles Auxiliary Function: Convenience Store Restrooms Midas Takeaway/Spaza Shop Distance from site: 5.7 km

Viva

Location: Oliver Tambo Drive Pumps: 8 Pumps 36 Nozzles Auxiliary Function: Convenience Store ABSA ATM FNB ATM Nedbank ATM Pharmacy Motor Showroom Distance from site: 5.9 km


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Total

Location: c/o President Mbeki & Heystek street Pumps: 4 Pumps 32 Nozzles Auxiliary Function: Convenience Store Restrooms Car Wash Offices Distance from site: 6.8 km

BP Express

Location: c/o Helen Joseph Drive & Arend Road Pumps: 4 Pumps 24 Nozzles Auxiliary Function: Pick n Pay Express Restrooms Car Wash FNB ATM Distance from site: 6.9 km

Observations from Table 3-4.

Nine filling stations are situated within a 6km drive radius from the proposed development site; Two filling stations are located along the R510 and are considered to be high-medium level

competition facilities; and There are seven filling stations within a 6km drive radius with a moderate to very low level of

competition.

As a conservancy measure due to the presence of the two identified competing facilities located in close proximity to the proposed development, calculations with a more conservative interception rate of 1.5% was undertaken. The objective of the conservative scenario is to illustrate that a high demand for a filling station remains, even with a conservative interception rate. Based on this scenario it can be argued that existing facilities will not be negatively affected by the proposed development.

3.2.2. Number of fuel pumps of existing filling stations Table 3-5 presents the number of pumps and nozzles applicable to each of the filling stations within a 6km drive radius from the proposed development.

Source: Site Visits, 2016


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It is clear from Table 3-5 that 47 pumps with 211 nozzles are utilised within a 6km drive radius, which translates to an average of 5 pumps with 23 nozzles per filling station.

3.2.3. Facilities of existing filling stations Modern filling stations incorporate auxiliary functions, which provide various services in order to attract potential customers who do not necessary want to purchase fuel. These facilities include, among others, an ATM, restrooms, car wash, and convenience store.

Table 3-8 presents the facilities provided at competing filling stations within a 6km drive radius of the proposed development.

Table 3-5: Number of Pumps and Nozzles

Source: Supply Survey, September 2016


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Findings from the supply audit indicate that the majority of commercial filling stations in the area provide some form of a convenience store facility. Four out of the nine filling stations provide ATM facilities, whereas 66% provide restrooms, and 22% provide car wash services, hardware stores, and a type of repair shop. Six out of the nine filling stations provide a form of take-away or motor spare shops. Only one filling station provided postal services, whereas 77% of the filling stations provided other services such as an internet café or a medical facility.

In order for the proposed filling station to be able to compete with existing facilities and be profitable, it is recommended that the following requirements are met:

The filling station should provide no less than 5 pumps with 23 nozzles to remain on par with existing filling stations;

To attract a different market as the average filling station, it is proposed that the filling station incorporate a facility such as a Liquor Store; and

The proposed development should at least provide a convenience store, restrooms, and ATM facilities.

3.3. Implications

The accepted industry standard for a filling station to remain viable is 350 000 litres per month. The demand calculations indicate that a demand of 506 870 litres per month is evident in the study area that is adequate to sustain the development of the proposed filling station. It is therefore, argued that the filling station development can be deemed as feasible.

Table 3-6: Auxiliary Functions of Filling Stations

Source: Supply Survey, September 2016


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4. Recommendations and Conclusions

This section will provide an overview of key findings and provide recommendations for the development of the proposed filling station.

4.1. Summary of Key Findings

The target market of the proposed filling station consists of transient traffic passing the development site along the R510;

The proposed Rustenburg Ext 31 development adjacent the filling station site will provide sufficient attraction to the filling station;

The Rustenburg Local Municipality developed one of the Rustenburg Rapid Transport (RRT) routes on the R510, which directly passes the filling station site. The RRT will allow for better flow of traffic thus, attracting more travellers to the R510 route to potentially make use of the filling station;

A survey of existing supply in the study area revealed that the average filling station has an average of 6 pumps with 20 nozzles;

The majority of competing facilities have a convenience store, restrooms, and ATM; Traffic counts conducted by Nyeleti Consulting indicate a large number of vehicles are anticipated

to visit the proposed filling station; An estimated 13 215 vehicles are anticipated to pass into the filling station based on the

interception factor; and A demand of 506 870 litres of fuel per month is evident based on Urban-Econ’s calculations, which

is a feasible demand to sustain the proposed filling station development.

4.2. Recommendations

Based on the analysis conducted, the proposed filling station development is foreseen to be a viable development option. The following recommendations are based on the findings from the feasibility study:

The proposed filling station should at least have 5 pumps with a total 23 nozzles; The filling station should provide both petrol and diesel pumps; A truck stop would be an added advantage due to the large volume of heavy vehicles moving

along the R510; The filling station should provide a convenience store, ATM and restroom facilities to be

considered on par with competing facilities; To attract a unique market, it is suggested that another type of facility be incorporated with the

filling station offerings such as, for example, a liquor store; and A restaurant tenant of a well-known franchise would be an added advantage since the proposed

development would also act as a one-stop facility. The selection of an appropriate restaurant tenant would affect the success of the proposed development.

4.3. Conclusion

Based on the findings of the feasibility study, a filling station is considered feasible due to the projected high demand for fuel in the study area and high accessibility provide by the R510. With the introduction of a catalyst development, more local demand will be generated as well as more of the traffic flowing on the R510 will be intercepted by the filling station. Due to a high demand for fuel, the proposed filling station is not expected to have any detrimental effects on competing facilities in the study area.

Documents

Rustenburg Extension 31 Filling Station