DESTINATION: LA MERCY

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1 Vacant land DESTINATION: LA MERCY In 2002, the government approved the creation of a new airport at La Mercy, kick-starting negotiations around a public-private partnership between the state and private stakeholders. La Mercy is an ideal site for the extensive DTP and KSIA development in terms of space and location. The site is strategically placed: 30kms north of central Durban. 50kms from the current Durban International airport site. On the N2 freeway, that leads in and out of the city centre. Between Durban Port and the Richards Bay harbour. Near dual-link rail access, provided by the Durban-Richards Bay line. Within noise contours that allow for the creation of residential and commercial development to the east of the site. Close to the SAT-3/SAFE cable, north of the site, which will facilitate e- commerce. Can you find your house on the map? Satalite photograph of La Mercy

2 RIGHT ON TIME The DTP and KSIA are critical infrastructure developments for KwaZulu- Natal (KZN) and South Africa (SA). The development has been designed to enhance tourism, support exports, and unlock various economic opportunities. Did you know? KZN provides about 17 percent of SA s Gross Domestic Product (GDP). KZN is the fastest-growing industrial and commercial province after Gauteng. Durban s ports are strategically located in terms of world shipping routes and are pivotal to the life of the city. Durban Port is SA s primary general cargo and container port (home to SA s largest container terminal). It deals with in-excess of 31 million tons of cargo, worth more than R50 billion, every year. Richards Bay s deep-water harbour handles 80 million tons per annum tons of manufactured goods a year move by road from KZN to Johannesburg, and are then flown out of the country, from OR Tambo International Airport. Many companies have had to relocate to Gauteng as a result of this export process. The DTP and KSIA development aims to: Expand the airline passenger capacity of Durban to cater for the expanding domestic and international demand for travel. Enhance international business travel and tourism in the Province by allowing direct, long-haul flights to/from KZN to/from international destinations. Expand the export industry by providing world-class airfreight facilities that will enable faster and more efficient export of high-value goods such as electronic goods. Provide a supportive environment for new entrants into the export perishables market. Encourage companies who need direct foreign access to establish offices in the region. Establish an electronic trading platform. This will lead to: Increased economic growth in KZN. Job creation - at its peak, the development is estimated to employ over 5000 people. Promotion of secondary business growth in the surrounding area. Stimulation of private sector investment

3 sod turning pic needed CAPTION - SOD turning WHO IS ON BOARD The three key stakeholders involved in the development are: Dube TradePort Company (DTP), established by the KZN Provisional Government. Airports Company South Africa (ACSA). Ilembe Consortium (consisting of major shareholders Group Five, WBHO, as well as a large group of KZN-empowered organisations). In June 2005, the National Minister of Transport, Jeff Radebe, announced that the new airport would be built, managed and operated by ACSA. ACSA and DTPC signed a contract with Ilembe Consortium to design and construct the airport and Trade Zone. As with any project of this magnitude, before construction began, application was made for an Environmental Impact Assessment (EIA). An EIA assesses the impact positive or negative of proposed development on the social and physical environment. A positive record of decision was issued on August 23, 2007 and construction commenced the next day. In terms of a Co-operation Agreement between ACSA and DTP, ACSA will own, construct, and operate all aeronautical infrastructure, inclusive of the passenger terminal, at the new airport. ACSA will grant DTP land for a 99- year lease period (renewable twice) for the Cargo Terminal, Trade Zone, and Agri-Zone. The Support Zone, a commercial property development, shall be implemented through a Joint Venture between ACSA and DTP, with each entity owning 40% and 60% respectively. The DTPC has rights to the first 15 years of development of the Joint Venture rt

4 Airport building CAPABILITIES Airport 24 hour operation 3 700m runway second runway option passenger handling 4 million PAX 7.5 million per annum by million per annum by 2060 FLY, TRADE, PLANT... THE DEVELOPMENT ZONES THE KING SHAKA INTERNATIONAL AIRPORT (KSIA) Replacing the Durban International Airport (DIA), with its short runway and limited resources, the KSIA is ACSA s first Green Field project and the first Green Field airport in South Africa in well over 50 years. A Green Field project involves a new airport that is built from scratch in a new location because the existing airport is unable to meet the projected requirements of traffic (in terms of travelers and trade). INTERESTING INFOMATION MATERIAL QUANTITY EQUIVALENT TO Runway and Taxiways 400,000 m2 100 Soccer Pitches Terminal Floor Area 103,000 m2 27 Soccer Pitches Earthworks 5.8 Million m3 2,500 Olympic Swimming Pools Concrete 100,000 m3 50 Olympic Swimming Pools Structural Steel 4,700 tones 1/2 the Eiffel Tower Asphalt 230,000 tones 35 km of a 4 Lane Highway The airport terminal will include: A domestic and international passenger terminal, complete with retail concession opportunities. An initial runway length of 3,7km, able to accommodate the latest New Generation Large Aircraft (including the A380 Airbus). A 64m air traffic tower, constructed with approximately 450 cubic meters of concrete, 120 tons of structural steel, and almost 140 tons of glass and cladding. A state-of-the art baggage-handling system. An international courier and parcel facility. Facilities for police, the military, VIPs, and general aviation and aircraft maintenance operations. The arrivals side of the airport will include: Open retail piazza and green environment surrounds. Pedestrian access by shade-covered walkways between the terminal and parking. Walkways designed to reduce vehicle/pedestrian conflict as there will be no need for pedestrians to cross access roads. Multi-storey parking facilities, with 6500 bays in total and pick-up and drop-off facilities for passengers (cars and buses). A Public Transport staging area. Airport How large is the site? 2, 060ha How many Passengers will the airport be able to handle on the opening day? 7.5 million per annum How many square meters floor space is the Terminal Building? m2 How many square meters is the Terminal Building roof area? m2 How many Air-bridges are there? 15 How many Check-in-desks are there? 72 How many Baggage reclaim carousels are there? 5 Carousels How many Aircraft stands are there? 27 Tower building under construction (05/2009)

5 Cargo building wharehouse THE TRADE ZONE The Trade Zone involves an air-freight component for the import and export of high-value goods and specialised cargo such as perishables and electronics. The Trade Zone objectives are two-fold: To recapture KZN freight currently utilising Gauteng s OR Tambo International Airport. To provide a platform to actively support and generate new investment in the full range of air-freight-related businesses and associated services in KZN. Trade Zone areas include: Cargo Terminal. Perishables Centre (for the rapid import and export of time-sensitive products). Warehousing and office space. The Trade Zone will contain: Cargo capacity to process tons per annum. Direct air-side access for the rapid transport of time-sensitive goods. The transportation of fresh produce by air to various destinations instead of produce being trucked to OR Tambo International. A competitive operating environment, geared to attracting a wide range of investors, operators, users and tenants. THE SUPPORT ZONE The Support Zone will consist of a 24 hour business environment for facilities associated with airport users. It will consist of an area of approximately 6.2 hectares, comprising 21 serviced stands. Land will be released for development to the private sector and typical facilities supported in this zone might include: Business offices and services. A Cyber-Port. Government support services centre. Hotels and tourist-transit accommodation. Conference, meeting, and training facilities. Entertainment facilities. Specialist retail e.g. imported fresh produce. Trade and exhibition centres. Vehicle service stations. Business offices and services

6 AgriZone greenhouses The AgriZone This production/growing zone will include land of approximately 64 hectares, for the cultivation of high-value farming products, and facilities to promote export. The zone will include: Pre- and Post-harvest handling facilities. Fresh produce trading facilities. Greenhouses for intensive agriculture, pack-houses, and cold storage, ensuring an uninterrupted cold chain process from producer to importer. Support infrastructure and services. A training centre, focusing on cut flowers and other crops. Rooms and buildings for administration, research and associated activities. DTP is developing these facilities with the view of facilitating support for fresh produce growers interested in selling high-value products to local and, especially, international markets. The focus will be on products which have a short shelf life and, therefore, need to be airlifted within a short period of time following harvesting in order to preserve quality. The Agri-zone will greatly reduce logistics and transport costs for growers, given that they would be located immediately adjacent to the main point of export. THE CYBER ZONE Bridging physical infrastructure and technology, the DTP s Information Technology (IT) Platform focuses on providing a full range of world-class telecommunications and IT services to the tenants of the Trade Zone, Agrizone and Support Zone. This platform will support national and international trade communications, and will provide: Broadband telecommunication and data communication infrastructures, ensuring speed and reliability of communications within the DTP. Wide-ranging connectivity solutions and value-added services, supporting high-end e-commerce, e-fulfilment, call-centres, and technology-critical activities. A unique technology platform enabling integrated end-to-end communications across the trade and transport chain, achieving efficiency and cost-saving for exporters, importers and the logistics community. Low volume, high value goods