| Airports Company South Africa (Acsa) has released a | | | | warranted they spend on the facility. To move the |
| statement indicating that the construction of Durban's | | | | airport from the southern part of the city to |
| new premier airport, King Shaka Airport will be ready | | | | stimulate growth in the north consequently results in |
| for commercial and passenger air freight by May 1st | | | | depriving the south of any economic stimulus. |
| this year, just in time for the 2010 World Cup in June. | | | | "The new facility was built with little or no |
| The building of this airport, as impressive as it is, has | | | | consideration of the general aviation community and |
| come under huge debate in the past couple of years. | | | | a number of operations in this sector in Durban are |
| Many feel that an airport of this magnitude in Durban | | | | under threat. The new airport also does not currently |
| is unnecessary and illogical, whilst others are looking | | | | have any facilities for either military or police aviation." |
| past the short term expenses and are more | | | | The Ugly |
| optimistic about the long term benefits of the | | | | The biggest concern about the King Shaka airport is |
| airfreight services it could make possible. Let's take a | | | | that the R3.15-billion budget that was initially approved |
| look at the good, the bad and the ugly: | | | | for the airport has almost doubled in budget and is |
| The Good | | | | now expected to cost about R7.6 Million rand to |
| Experts in South Africa from numerous organizations | | | | complete. This is going to directly impact the cost of |
| such as the Economic Development and Tourism | | | | local and international flight costs for passengers and |
| MEC, the Dub Trade Port (DTB) and the National | | | | air freight companies. |
| Council of Provinces have all had positive feedback | | | | Acsa applied to its regulator for a tariff increase to |
| regarding the new international air freight structure. | | | | passenger and cargo flights of 133% which was |
| Michael Mabuyakhulu, MEC of the Economic and | | | | immediately rejected by the regulator. However, the |
| Development Tourism portfolio is confident that the | | | | national regulator has suggested a tariff increase of |
| new airport will drive economic growth in the area | | | | 60% in 2010 followed by a further 25% in 2011. |
| through the promotion of tourism, resort | | | | Effectively, air freight services and passengers can |
| development as well as contribute towards the | | | | expect to pay 89% more for flights in 2011, |
| growth of passenger and air freight services in the | | | | something that will drastically decline the amount of |
| area. | | | | passengers actually taking up these services. King |
| Job creation was always a factor in the construction | | | | Shaka Airport was by far the primary reason for |
| and operation of the airport. Air freight companies | | | | these tariff increases. |
| from the private sectors that are expected to | | | | The International Air Transport Association (Iata) |
| operate from the new site, will need to employ | | | | who are responsible for representing over 230 airlines |
| people to run their impressive new offices and the | | | | internationally, had the following to say: |
| new location, this coupled with the massive job | | | | "Quite simply, the extravagance that is King Shaka |
| creation opportunities that were provided with the | | | | International Airport cannot be justified. There is no |
| construction of the airport have always been a | | | | sustainable business case underpinning its rushed |
| primary goal for the new passenger and commercial | | | | development. Local and international airlines agree |
| air freight site. | | | | that the airport is premature with insufficient traffic |
| The long term benefits of the new international air | | | | or demand to support it. |
| freight site include a massive increase in the number | | | | "Acsa has allowed the program costs to spiral out of |
| of passengers who will be able to pass through the | | | | control. Instead of keeping within the original |
| airport. Currently, Durban international airport can | | | | R3.15-billion budget, Acsa now expects King Shaka to |
| handle about 4.5 million passengers a year. This will be | | | | come in at about R7.6-billion, and it wants to pass the |
| almost double to 7.5 million passengers a year at the | | | | entire cost burden onto airlines and their customers, |
| new airport. | | | | recouping its outlay by hiking tariffs at OR Tambo |
| The current Durban International Airport is ideally | | | | International Airport and its other airports." |
| positioned to be converted into a sea freight and air | | | | What do you think? |
| freight cargo dugout container terminal where cargo | | | | We'd love to hear your comments below. Are you |
| can be stored for South Africa's busiest sea port. | | | | happy to pay increased tariffs for your domestic and |
| The Bad | | | | international flights so that Durban and subsequently |
| Board of Airline Representatives of South Africa | | | | South Africa can benefit in the long term from |
| (Barsa) CEOAllan Moorehas openly stated that the | | | | improved international air freight services? Or do you |
| building of this kind of airport in this part of Durban | | | | think this is just another hasty decision made by the |
| will not provide any value to the local sea and air | | | | South African Government in reaction to hosting the |
| freight industry. He stated the following: | | | | 2010 World Cup? |
| "There is nothing at this airport that would have | | | | |