Durban Aerotropolis
Presentation
By
Cosmas Hamadziripi
Economist: Policy and Planning/ Aerotropolis
Economic Planning Programme
Tel: +27 33 264 2785/1
Mobile: +27 82 520 8715
hamadziripic@kznded.gov.za
1
Strategic Pillars
SMME Development
Information, Communication and Technology
Research, Innovation and Development
Re-industrialization, Re-modernisation and Urbanization
Alignment: PGDP, Industrial Policy Action Plan, NDP and New Growth Path
Tourism
Industrial
economic
Hubs and
SEZs
Maritime
Environmental
Management
Aerotropolis
Funding Mechanism
Organizational excellence
KwaZulu-NatalAerotropolisStrategy(IAS)
National Development Plan (NDP)
 SIPS
Strategic Infrastructure Programme (SIP2)
 Identifies Aerotropolis as one of the infrastructure programmes
Provincial Growth and Development Strategy (PGDS)
 One of the catalytic projects for job creation
EDTEA 2014-2019 Strategic Plans
 Pillar for economic development
JobCreationandEconomicgrowth
Where Do We
Want to Go? Policy alignment
Geographical Location
 52 million people
 About US$575 billion GDP
 10.4 million people
 About US$94 billion GDP
South Africa
Area: 1,214,090 km Area: 94,391 km2 2
KwaZulu-NatalAfrica
4
KwaZulu-Natal's Comparative Advantages
Gateway to South Africa and Sub-Saharan Africa (300 million people
market within SADC)
The ports of Durban (Largest port in Africa in terms of container handling
and volume of vessels) and Richards Bay, together, handle over 80% of
South Africa’s cargo tonnage.
Newly built King Shaka International Airport with a future capacity of
handling 45 million passengers and state of the art cargo facility at Dube
Trade port
Well developed rail, road and pipeline network
Second largest regional economy/province after Gauteng contributing
16.3% GDP (US$94 billion) to South Africa’s GDP.
Vibrant manufacturing sector (Maritime, Automotive, Rail).
Highly diversified agricultural sector.
Premier tourism destination
5
Conceptual Framework
An aerotropolis can be defined as a …
– multimodal freight and passenger transportation complex which supports efficient, cost-
effective, sustainable development in a defined region of economic significance centered
around a major airport.” United States Congress H.R.658: Aerotropolis Act of 2011
– A new urban form placing airports in the centre with cities growing around them, connecting
workers, suppliers, executives, and goods to the global marketplace
• But it is more than a transport complex: It is a strategy...
– …. constellation of physical, institutional, economic and policy interventions which upgrade
local assets, reduce ground-based transport times and costs, and expand global connectivity to
leverage aviation-enabled trade in goods and services for business competitiveness, job
creation and prosperity of those at all socio-economic levels
• Aerotropoli grow primarily in three ways
o Airport Cities grow outward from terminals
o Cities grow outward towards the airport
o Aerotropolis development follows ground transportation corridors
Aerotropolis Defined
Aerotropolis: The Fifth Wave of Transit-oriented Development in the 21st
Century
Transportation
Infrastructure Has Always
Shaped Business
Location, Commercial
Activity, and Urban
Development
Century
21st
20th
19th
18th
17th
First
Wave:
Seaports
Second Wave:
River & Canal-
Based
Development
Third Wave:
Railroads
Fourth
Wave:
Highways
Fifth
Wave:
Airports
Basic Drivers of the FIFTH WAVE
• Large jet aircraft (along with IT advances).
• Globalization (producers & consumers).
• Speed (time-based competition).
• Agility (customization & flexible response).
• Connectivity (worldwide enterprise networks).
• Perishability (pharma, fish, flowers, fashions).
• Tourism (especially international).
• See: John D. Kasarda and Greg Lindsay Aerotropolis: The Way We’ll Live Next (2011)
Durban Aerotropolis
• Aims to drive economic and industrial
development in the province through:
 Air-transport-driven growth.
9
KZN Aerotropolis Comparative Advantage
• Proximity two largest Ports in Africa (Durban and
Richards Bay)
• State of the art road, rail, broadband
infrastructure
• Located in a Green Field space
• Newly built and purpose designed international
airport with a 60 year plan
10
Critical Success Factors
• Special Economic Zone (SEZs) designation around
Durban King Shaka International airport, Richards
Bay SEZ and Regional Industrial Economic Hubs
• Airline attraction strategies (Route development
fund)
• Development of airport alliances to improve
connectivity
• Infrastructure development under the strategic
infrastructure projects (SIPs)
• Strong political will and stakeholder coordination
11
Integrated Strategic Pillars
•Place Marketing
•Advanced Telecommunications Infrastructure
•Infrastructure and Engineering Services
•Sustainability
Aerotropolis
Support Pillars
•Business Growth and Development
•Knowledge support and human capital
•Integrated multimodal transport networks
Aerotropolis
Core Pillars
•Growing air services and
connectivity
•Integrated and Coordinated
Spatial planning
•Equitable and inclusive growth
Aerotropolis
Foundational Pillars
12
Aerotropolis Footprint- One Hour Travel time from KSIA
14
Dube/Airport City
SUPPORT ZONE 1: DUBE CITY
Future
Current
15
16
EXPANSION OF THE DURBAN CONTAINER TERMINAL
 Current throughput is 2.6 million TEUs
 Future capacity 19.6 million TEUs
 Government investment US$200 million
18
Sea Port – Aerotropolis Transport infrastructure Linkages
Current
Future
19
C1
C9
C8
C8
C3
C6
C6
C7
C7
C5
Umhlanga
CBD
Umlazi
Mpumalanga
Pinetown
Chatsworth
Rossburgh
Tongaat
Hillcrest
Warwick
Bridge City
Airport
Prospecton
Merebank
C4
C2
Park and Ride
Transfer
Station
Employment
Residential
Mixed
Aerotropolis: Public Transport Connectivity
20
KING SHAKA INTERNATIONAL AIRPORT
21
22
KZN INTEGRATED AEROTROPOLIS STRATEGY
Recommendations for FIFA WF development strategies and programmes
Development of an Integrated Aerotropolis Master Plan and an
Implementation Plan to give effect to the Aerotropolis Strategy:
• Aerotropolis footprint/ Spatial plan;
• Land use (industrial, agriculture, residential, recreation);
• Nodal and corridor development (Transport) plan;
• Infrastructure (water, sanitation, road, rail, Broadband,
electricity) plan;
• Airport City plan and model;
• Environmental plan;
• Investment strategy; and
Intensify the investment mobilisation for KZN Aerotropolis
Moving Forward
PROJECT NAME Progress
KwaZulu-Natal Aerotropolis
Strategy
 KwaZulu-Natal Integrated Aerotropolis strategy (IAS) was adopted by Cabinet in October 2014.
 Process of appointing a Service Provider to undertake a detailed Master plan for the Durban Aerotropolis is
underway.
 Need to include the Aerotropolis in the Social contract which will be proceeded by MOUs between EDTEA and
various implementing parties.
 A concept document for the development of Aerotropolis Institute has been developed and UKZN has been
identified as a partner.
 Business plan for the Aerotropolis Institute to be developed
 The following matters require urgent Government intervention to unblock development in the Aerotropolis,
particularly in the Dube City:
oPublic transport (Road, rail) system for KSIA.
oStrategic road links to key developments
oNew interchanges
oWaste treatment works
oBulk water
oElectricity.
KwaZulu-Natal Route
Development Strategy
 Development of KZN Airlift strategy is in progress
 Target market areas for route development identified include London, The Gulf region, International hub access,
regional Africa, Domestic, Cargo and charter flights
 Negotiations with key regional and international airlines are ongoing
 Route development support mechanism being formulated
 World Routes 2015 provides a platform to consolidate airline negotiations
Draft Regional Airport
Strategy
 Recapitalisation of Pietermaritzburg, Margate and Ulundi Airports completed
Moving Forward
Thank You
26

Presentation: Durban Aerotropolis - Northern Area Business Forum: 18 February 2015

  • 1.
    Durban Aerotropolis Presentation By Cosmas Hamadziripi Economist:Policy and Planning/ Aerotropolis Economic Planning Programme Tel: +27 33 264 2785/1 Mobile: +27 82 520 8715 hamadziripic@kznded.gov.za 1
  • 2.
    Strategic Pillars SMME Development Information,Communication and Technology Research, Innovation and Development Re-industrialization, Re-modernisation and Urbanization Alignment: PGDP, Industrial Policy Action Plan, NDP and New Growth Path Tourism Industrial economic Hubs and SEZs Maritime Environmental Management Aerotropolis Funding Mechanism Organizational excellence
  • 3.
    KwaZulu-NatalAerotropolisStrategy(IAS) National Development Plan(NDP)  SIPS Strategic Infrastructure Programme (SIP2)  Identifies Aerotropolis as one of the infrastructure programmes Provincial Growth and Development Strategy (PGDS)  One of the catalytic projects for job creation EDTEA 2014-2019 Strategic Plans  Pillar for economic development JobCreationandEconomicgrowth Where Do We Want to Go? Policy alignment
  • 4.
    Geographical Location  52million people  About US$575 billion GDP  10.4 million people  About US$94 billion GDP South Africa Area: 1,214,090 km Area: 94,391 km2 2 KwaZulu-NatalAfrica 4
  • 5.
    KwaZulu-Natal's Comparative Advantages Gatewayto South Africa and Sub-Saharan Africa (300 million people market within SADC) The ports of Durban (Largest port in Africa in terms of container handling and volume of vessels) and Richards Bay, together, handle over 80% of South Africa’s cargo tonnage. Newly built King Shaka International Airport with a future capacity of handling 45 million passengers and state of the art cargo facility at Dube Trade port Well developed rail, road and pipeline network Second largest regional economy/province after Gauteng contributing 16.3% GDP (US$94 billion) to South Africa’s GDP. Vibrant manufacturing sector (Maritime, Automotive, Rail). Highly diversified agricultural sector. Premier tourism destination 5
  • 6.
    Conceptual Framework An aerotropoliscan be defined as a … – multimodal freight and passenger transportation complex which supports efficient, cost- effective, sustainable development in a defined region of economic significance centered around a major airport.” United States Congress H.R.658: Aerotropolis Act of 2011 – A new urban form placing airports in the centre with cities growing around them, connecting workers, suppliers, executives, and goods to the global marketplace • But it is more than a transport complex: It is a strategy... – …. constellation of physical, institutional, economic and policy interventions which upgrade local assets, reduce ground-based transport times and costs, and expand global connectivity to leverage aviation-enabled trade in goods and services for business competitiveness, job creation and prosperity of those at all socio-economic levels • Aerotropoli grow primarily in three ways o Airport Cities grow outward from terminals o Cities grow outward towards the airport o Aerotropolis development follows ground transportation corridors Aerotropolis Defined
  • 7.
    Aerotropolis: The FifthWave of Transit-oriented Development in the 21st Century Transportation Infrastructure Has Always Shaped Business Location, Commercial Activity, and Urban Development Century 21st 20th 19th 18th 17th First Wave: Seaports Second Wave: River & Canal- Based Development Third Wave: Railroads Fourth Wave: Highways Fifth Wave: Airports
  • 8.
    Basic Drivers ofthe FIFTH WAVE • Large jet aircraft (along with IT advances). • Globalization (producers & consumers). • Speed (time-based competition). • Agility (customization & flexible response). • Connectivity (worldwide enterprise networks). • Perishability (pharma, fish, flowers, fashions). • Tourism (especially international). • See: John D. Kasarda and Greg Lindsay Aerotropolis: The Way We’ll Live Next (2011)
  • 9.
    Durban Aerotropolis • Aimsto drive economic and industrial development in the province through:  Air-transport-driven growth. 9
  • 10.
    KZN Aerotropolis ComparativeAdvantage • Proximity two largest Ports in Africa (Durban and Richards Bay) • State of the art road, rail, broadband infrastructure • Located in a Green Field space • Newly built and purpose designed international airport with a 60 year plan 10
  • 11.
    Critical Success Factors •Special Economic Zone (SEZs) designation around Durban King Shaka International airport, Richards Bay SEZ and Regional Industrial Economic Hubs • Airline attraction strategies (Route development fund) • Development of airport alliances to improve connectivity • Infrastructure development under the strategic infrastructure projects (SIPs) • Strong political will and stakeholder coordination 11
  • 12.
    Integrated Strategic Pillars •PlaceMarketing •Advanced Telecommunications Infrastructure •Infrastructure and Engineering Services •Sustainability Aerotropolis Support Pillars •Business Growth and Development •Knowledge support and human capital •Integrated multimodal transport networks Aerotropolis Core Pillars •Growing air services and connectivity •Integrated and Coordinated Spatial planning •Equitable and inclusive growth Aerotropolis Foundational Pillars 12
  • 13.
    Aerotropolis Footprint- OneHour Travel time from KSIA
  • 14.
  • 15.
    SUPPORT ZONE 1:DUBE CITY Future Current 15
  • 16.
  • 17.
    EXPANSION OF THEDURBAN CONTAINER TERMINAL  Current throughput is 2.6 million TEUs  Future capacity 19.6 million TEUs  Government investment US$200 million 18
  • 18.
    Sea Port –Aerotropolis Transport infrastructure Linkages Current Future 19
  • 19.
  • 20.
  • 21.
  • 22.
    KZN INTEGRATED AEROTROPOLISSTRATEGY Recommendations for FIFA WF development strategies and programmes Development of an Integrated Aerotropolis Master Plan and an Implementation Plan to give effect to the Aerotropolis Strategy: • Aerotropolis footprint/ Spatial plan; • Land use (industrial, agriculture, residential, recreation); • Nodal and corridor development (Transport) plan; • Infrastructure (water, sanitation, road, rail, Broadband, electricity) plan; • Airport City plan and model; • Environmental plan; • Investment strategy; and Intensify the investment mobilisation for KZN Aerotropolis Moving Forward
  • 23.
    PROJECT NAME Progress KwaZulu-NatalAerotropolis Strategy  KwaZulu-Natal Integrated Aerotropolis strategy (IAS) was adopted by Cabinet in October 2014.  Process of appointing a Service Provider to undertake a detailed Master plan for the Durban Aerotropolis is underway.  Need to include the Aerotropolis in the Social contract which will be proceeded by MOUs between EDTEA and various implementing parties.  A concept document for the development of Aerotropolis Institute has been developed and UKZN has been identified as a partner.  Business plan for the Aerotropolis Institute to be developed  The following matters require urgent Government intervention to unblock development in the Aerotropolis, particularly in the Dube City: oPublic transport (Road, rail) system for KSIA. oStrategic road links to key developments oNew interchanges oWaste treatment works oBulk water oElectricity. KwaZulu-Natal Route Development Strategy  Development of KZN Airlift strategy is in progress  Target market areas for route development identified include London, The Gulf region, International hub access, regional Africa, Domestic, Cargo and charter flights  Negotiations with key regional and international airlines are ongoing  Route development support mechanism being formulated  World Routes 2015 provides a platform to consolidate airline negotiations Draft Regional Airport Strategy  Recapitalisation of Pietermaritzburg, Margate and Ulundi Airports completed Moving Forward
  • 25.