J Radebe: Dube Tradeport and La Mercy Airport

Dube Tradeport and the Airport at La Mercy on runway, ready to
take off: J Radebe, Minister of Transport

10 August 2006

I am pleased to announce the final rationalised structure for the management
and ownership of the integrated Dube Tradeport and the airport at La Mercy.

The various engagements with all parties have travelled a long and rocky
road, but we have finalised a structure that represents both certainty, cost
rationalisation, ease of management and implementation as well as correctly
apportioning risk and responsibility. I am also pleased to announce that the
airport at La Mercy will be operational, and the Durban International Airport
de-commissioned in the first quarter of 2010.

The existing processes that have been performed by either the Airports
Company of South Africa (ACSA) and/or the Dube Tradeport company will continue
to the agreed time-schedules and within the parameters that have been
established to date.

ACSA shall exclusively build, operate and own the airport and the passenger
terminals in terms of the procurement that is currently in process by the Dube
Tradeport company, and to the existing timelines agreed in that process. The
key date in that process being that all construction shall be completed by
December 2009. The airport will then be commissioned by the first quarter of
2010, well in time for the 2010 World Cup.

The Dube Tradeport company shall exclusively own manage and develop the
trade port, the agrizones and the cyberport, including the cargo handling
terminals in the airport. The land will be transferred to the Dube Tradeport
company for development for its own account. These facilities will be
integrated into the existing integrated logistics system planning processes
occurring at national, provincial and local level.

All developments that do not strictly fall within the narrow definition of
airport business or trade port business and all land associated therewith,
shall be owned and developed within a 50/50 joint venture between ACSA and the
Dube Tradeport company. Wherever possible, private sector involvement will be
sought, with a particular emphasis on black economic empowerment (BEE)
involvement.

Master planning for the entire precinct and the re-development of the
existing Durban International Airport site shall be done jointly by the
parties, the KwaZulu-Natal (KZN) Province and Ethekwini Municipality under the
leadership of the Department of Transport.

This entire project must be integrated at all levels and to ensure that, I
have implemented a management structure that ensures that the development will
go according to the timelines and that decision-making and oversight will be
effective.

The decision-making structure will be the Political Committee, that I shall
chair, which will include representation from the KwaZulu-Natal (KZN)province,
Ethekwini municipality and the ACSA Board. A Steering Committee that will be
responsible for the operational management, technical issues and project
management of the entire development as well as ensuring its delivery will be
chaired by the Director General of Transport and shall include senior officials
and executive management from ACSA, the KZN province, Ethekwini municipality
and the Dube Tradeport company.

It is with great optimism and enthusiasm that I look forward to the
successful delivery of the Dube Tradeport and the international airport. The
benefits of this integrated logistics platform, the commercial developments
therein and the passenger facilities, represents a new road that will bring
prosperity to the area and benefit to the country.

Media Contact:
Collen Msibi
Cell: 082 414 5279

Issued by
Ministry of Transport
10 August 2006

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