Airport Cities World Conference & Exhibition 2013
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1 Airport Cities World Conference & Exhibition 2013 Ekurhuleni Aerotropolis Master Plan Jack van der Merwe Pr. Eng. 26 April 2013
2 EKURHULENI AEROTROPOLIS MASTERPLAN STATUS QUO
3 The development of an Aerotropolis is a process not a project An Aerotropolis will develop around an international airport spontaneously, but if the development is planned and properly structured one can maximise the benefits to the area and the country The Ekurhuleni Aerotropolis is not competing with Johannesburg or Tshwane, its competing with Paris, New York, Singapore and Hong Kong
4 Implementation Process Implementation Four pillars Political will & commitment Viable project (base case design) Technical Financial Legal/Institutional Funding (for Infrastructure & Operations) Government s portion Private Sector s portion Community acceptance & buy-in Socio-economic benefits Power of expropriation
5 Infrastructure Funding Infrastructure Funding
6 National Development Plan (NDP) The NDP aims to eliminate poverty and reduce inequality by According to the plan, South Africa can realise these goals by drawing on the energies of its people, growing an inclusive economy, building capabilities, enhancing the capacity of the state, and promoting leadership and partnerships throughout society.
7 National Development Plan 2030: Includes a massive infrastructure investment plan Government to spent R3,2 trillion (USA$ 355 Billion) on Strategic Infrastructure Projects (SIP) (18 focus projects which includes transport projects) 7
8 Presidential Infrastructure Coordinating Committee The PICC compiled 645 infrastructure related projects from government departments and public entities and prioritised and integrated them based on catalytic impact and provincial spread to generate 18 Strategic Integrated Projects (SIP s) SIP2: Durban-Free State-Gauteng Logistics & Industrial Corridor SIP7: Urban Space and Public Transport Programme 8
9 SIP - Projects 9
10 The 12 Major Urban Areas Cape Town Buffalo City Nelson Mandela Ethekwini Mangaung Msunduzi Johannesburg* Ekurhuleni* Tshwane* Rustenburg Mbombela Polokwane * Gauteng Province 10
11 SIP 2: Durban-Free State-Gauteng Logistics & Industrial Corridor Improve logistics and economic integration between the main economic centres and raise the efficiency of the export operations Strengthen the logistics and transport corridor between SA s main industrial hubs; improve access to Durban s export and import facilities, raise efficiency along the corridor and integrate the Free State Industrial Strategy activities into the corridor and integrate the currently disconnected industrial and logistics activities as well as marganisalised rural production centers surrounding the corridor that are currently isolated from the main logistics system. Project Location KZN- Free State & Gauteng SIP2 Launch Presentation 18 June
12 Background
13 Overall Picture Northern Region Central Region Rural Development (SIP 11) Southern Region Harrismith Logis0cs Hub Sentra - Rand West Rand Hub Cato Ridge Pyramid South City Deep Port of Durban Port and Rail Expansions Aerotropolis Tambo Springs NMPP Dube Trade Port Durban Dig- Out Port Cornubia Integrated Se?lement NSC (SIP 17) This list may change as the implementa0on progresses. The selec0on of projects for inclusion in the por7olio of SIP2 is the preroga0ve of the PICC and in this respect the SIP2 Steering Commi?ee will func0on as advisor to the SIP2 sponsors, the Ministers of Public Enterprises and Transport. *NMPP New Mul0- Purpose Pipelines NSC - North South Corridor (Regional)
14 Gauteng Hubs And Terminals: Proposed Loca0ons 2041 Super terminal Intermodal terminal Positioning is critical: Close to demand / customers Good access to road infrastructure General freight terminal Pyramid Close to main corridors O R Tambo Roscon Pretcon North West Kaalfontein Sentrarand Mpumalanga West Rand Kaserne Isando City Deep Tambo Springs Vaal Logistics Free State Sufficient growth opportunities for logistics infrastructure (warehousing etc.) Non-intrusive and sustainable Close to urban edge (best practice)
15 Opportunity always knocks at the least opportune moment. No. 11 Ducharme s Precept
16 Aerotropolis Master Plan Aerotropolis Master Plan
17 Aerotropolis Conceptual Framework The intention of the Framework: The Ekurhuleni Metropolitan Municipality (EMM) took a strategic decision that the Aerotropolis concept be pursued, developed further and implemented to leverage the economic benefits of having the busiest airport on the African continent, the OR Tambo International Airport, located within its boundaries;
18 Aerotropolis Conceptual Framework The intention of the Framework: Given that the OR Tambo International Airport resides within its municipal jurisdiction the City of Ekurhuleni and the Gauteng Province needs to plan accordingly for any development related to this asset, whilst acknowledging that the within the South African context, airports are a national competence, whereas globally, airports are often managed by the cities within which they reside;
19 Aerotropolis Conceptual Framework The intention of the Framework: To develop a common understanding of an Aerotropolis for the City of Ekurhuleni and the Gauteng City Region, and form the basis for engagements with key stakeholders whose cooperation and collaboration is critical for a successful implementation of the Aerotropolis model.
20 Considerations The physical area related to it is often defined as a twenty to thirty minute distance to the airport by a mode of transport. The economic impact of the Aerotropolis reaches up to a distance of sixty kilometers. The consideration of the time travelled and the span of economic impact and highlights the importance of the involvement of Gauteng as a Global City Region.
21 Considerations The Airport City Should be understood as the area owned and managed by ACSA inside the fence, whilst the Aerotropolis is the area outside of the fence including the Ekurhuleni Metropolitan Municipality; Connection with other corridors;
22 Considerations Nature of Economic Activity in the EMM Aerotropolis; Aerotropolis centered around logistics; Development of a Special Purpose Vehicle (SPV) for the management of the Aerotropolis.
23 Key Initiatives Release of strategic land parcels; Expansion of the urban edge to create greenfield development opportunities; New city design; Optimise agriculture potential; Invest in economic infrastructure; Leverage strategic partnerships; and Invest in strategic skills development.
24 Elements of the Value Proposition Logistics Reducing Cost of Business Skills Development Economic Growth Spatial Planning Integrated Logistics Network Integrated PT Network
25 Institutional Arrangements
26 Complex problems have simple, easy to understand, wrong answers. No. 4 Grossman s Misquote
27 Composition: Operational Task Team Convenor: Jack van der Merwe (GMA) with representatives from: Economic Development (GPG & EMM); Roads and Transport (GPG & EMM); Infrastructure Development (GPG & EMM); Treasury & Finance (GPG & EMM); Ekurhuleni Metropolitan Municipality; and ACSA.
28 Role & Function: Operational Task Team Legal requirements of PFMA & MFMA Propose a Viable model for financing & managing the project Establishment of a Special Purpose Vehicle (SPV) Funding model for infrastructure & operations, Public Private Partnerships Develop the conceptual framework Develop the Master Plan
29 Work Stream A Strategic Roadmap - Conceptual framework Work completed, Conceptual framework approved by: Ekurhuleni Metropolitan Municipality (EMM) Gauteng Provincial Government (GPG) Incorporated in the PICC projects (SIP2)
30 RSDF for Region A Work Stream B It is important to note that the Regional Spatial Development Framework (RSDF) interprets the Municipal Spatial Development Framework (MSDF) and provides for the Aerotropolis concept; The Region A RSDF (Spatial Development Concept Draft 2) is being distributed for comment and will be supported by sectorial plans;
31 RSDF for Region A Work Stream B Four sectorial plans for: Transport; Human Settlement; Environment; and Land Use Planning. Makes provision for the creation of development nodes for public transport, open space networks incorporating the use of non-motorised transport.
32 RSDF for Region A Work Stream B Planning and Land Use Guidelines (PLUG) to provide planning and land used guideline across all six regions so as to ensure a common application of the concept across EMM; Will create a geographic footprint and demarcate the space into primary and secondary Aerotropolis areas. The first draft of the PLUG has been completed.
33 RSDF for Region A Work Stream B Aerotropolis Landscaping and Beautification Plan The Scope of Work is under development and will be finalised in consultation with the Department of Sports Recreation Arts and Culture, Environmental Management, and the Marketing and Communications Unit. Will comprise three cornerstones, namely: iconic structures and skylines, gateways and corridors. the Beautification and Landscaping plan to create a City identity for Ekurhuleni.
34 Aerotropolis Planning Committee Work Stream C Convenor: EMM Senior Planning representatives from: Ekurhuleni Metropolitan Municipality ACSA National, Provincial & Parastatals (PRASA, Transnet, Blue IQ, GDED, SAA)
35 Aerotropolis Planning Committee Work Stream C Specialist Working Committees: Strategic, spatial and land use planning; Transportation planning (road, rail, public transport); Telecommunication; Municipal services; Freight and Logistics; Business and Industry; On-airport and Airline strategies; Research and Development; Education, training and Labour; Community upliftment (the pro-poor agenda); Sustainability and Environment; Aesthetics; Marketing and Communication; and Institutional and Financial processes.
36 Aerotropolis Master Plan Work Stream D Developed the Terms-of-Reference (ToR) for the appointment of a service provider Embarked on the Procurement process In the process of appointing a consortium of consultants to assist EMM with the development of the Master Plan
37 Aerotropolis Master Plan Work Stream D Focus Areas: Land Use and Spatial Planning; Multi-modal Logistics Transport and Road Network; Attracting Investors and Investment; Co-ordination Tool and Institutional Arrangements (SPV); Sustainable Development and Green Economy; Beautification and Place-making; and Other Activities.
38 Master Plan Work Stream D Service provider must develop the business case for the Aerotropolis, institutional structure (SPV?) and possible funding sources (EMM)
39 Master Plan Work Stream D Short term deliverables Develop an EMM-Package that can be offered to potential industrial or Logistics investors. This can consist of a rates & taxes holiday by EMM or the provision of subsidized government land. (EMM & other Government Departments) Develop a One-stop-Shop in EMM. This must provide a potential investor with a single point of contact where every bit of Red-tape associated with investing in EMM can be dealt with, within a fixed timeframe of say 90 days. (EMM)
40 Work Stream E Marketing and Stakeholder Engagement Developed a Marketing Plan (EMM & GPG) Create a Consultative Forum with all Stakeholders and Role Players and hold the first Forum meeting: Investors Conference February 2013 ACE conference & Exhibition April 2013
41 Conclusion The Seven Stages of an Aerotropolis Project Enthusiasm Promises & Programmes Disillusionment Panic Hunt for the guilty Punishment of the innocent Reward for those who had nothing to do with it
42 Whatever it is that hits the fan will not be evenly distributed. No. 2 Law of Probable Dispersal
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