Distinguished guests, ladies and gentleman
Good evening, and may we say what a pleasure it is for me to address you tonight to announce the Cargo Terminal Operator which will operate the Dube Trade Port Cargo Terminal from 1 May 2010.
Before proceeding with this important announcement, we would like to make a number of comments related to the air freight industry and our economic development strategy going forward.
During the last 15 years, the KwaZulu-Natal Provincial Government has championed the cause of building a new international airport and trade port at the La Mercy site. Not only have we supported this in political terms, but we have backed-up our commitments by providing the necessary resources required to get this project built.
We have done this, primarily, because we regard the Dube Trade Port and new international airport as serving as a major engine capable of driving economic growth and development during the course of the next 30 years. As a result of this initiative, a wide range of different economic development opportunities now present themselves, on which local industry, tourism, the air freight industry and the services sector may capitalise.
However, the construction of a new trade port alone will not automatically lead to economic growth and development. We all need to focus on and address a range of competitive issues, inclusive of international connectivity, efficient operations and finally the need for local firms to take advantage of the infrastructure in order to grow their businesses, their volumes and their share of global markets.
With respect to international connectivity, we are proud of the fact that Emirates will start its international service from 1 October 2009 at our current airport. Further, I am very impressed by the fact that they have opted to implement this service well before the introduction and opening of the new international airport and Dube Trade Port. This is a most positive signal; a signal that KwaZulu-Natal, with its current global travelling market of more than 800 000 passengers, has the market to expand our international connectivity.
In the first five years of operation, we are targeting at least five international destinations. To be successful, we require the active support of our local air freight and tourism industries to support government’s efforts to secure new international routes for the province. The provincial government will also actively promote resort development, tourism, the perishables sector and other low-weight high-value manufacturing activities, with the view to stimulating greater international passenger and cargo demand.
In terms of our cargo numbers, we believe the province produces approximately 25 000 tons of air cargo which is currently transported by road to the OR Tambo International Airport in Gauteng. This number may well be significantly higher if we are to assume that KwaZulu-Natal makes up about 30 percent of the current total tonnage of OR Tambo International Airport.
Whatever the number, we have a base through which we may grow our tonnage numbers over time through making the Dube Trade Port Cargo Terminal the terminal of choice in the Southern African market. We will only achieve this by ensuring that we have in place a truly world-class cargo terminal which is exactly what we have done and our Cargo Terminal is now almost complete.
In addition, it is imperative that we provide excellent service standards and operations and ensure the ease of doing business through the provision of IT platforms that facilitate electronic trade as a preferred mode of doing business. To achieve our objectives of becoming the air cargo terminal of choice in the Southern Africa market, we are hugely excited about the fact that we are able to announce World Flight Services (WFS) as the new Cargo Terminal Operator for the Dube TradePort Cargo Terminal.
WFS brings with it the experience and global knowledge of operating 112 cargo terminals across the globe. This is an organisation with excellent service standards and an impressive client base of airlines and we are, therefore, extremely proud to welcome them to our country, province and city.
Even more compelling, is the fact that WFS enjoys the unique speciality of successfully growing cargo volumes. This is precisely what we are looking for in an operating partner. We greatly look forward to developing, with WFS, a cargo network strategy that positions the Dube Trade Port Cargo Terminal as the air cargo terminal of choice.
In the prevailing difficult times of global economic recession, we are indeed pleased to have been able to secure an operator of this calibre and we certainly look forward to working closely with WFS.
The impact of the recession is, no doubt, felt the hardest by our local industries. In this respect, we are also very conscious of the fact that the Dube Trade Port and new international airport will mean an economic change and adjustment, insofar as it involves relocation from one part of the city to another in other words the movement of aviation related activity from south to north.
This obviously needs to be accommodated and priced into various businesses which may be dependant on the aviation industry. In this regard, we have put in place a policy framework that will peg rental rates for users in order to accommodate not only this economic adjustment, but also with consideration for the economic recession. These pegged rates will apply for the first three years of operations and then re-negotiated to accommodate market changes and adjustments going forward. We hope and trust that this will provide the optimum environment for local air freight companies to make speedy and decisive decisions as regards the securing of operational space at the Dube Trade Port warehouse and Trade Zone.
We would add that the global economic recession will obviously not last forever. South Africa, within this global context, is expected to show positive economic progress early next year and we expect this trend to continue, albeit at a slow pace.
The point, for the local air freight industry, is that you will undoubtedly want to be at the Dube Trade Port’s Trade Zone in order to catch the upswing and take advantage of the value-added services and efficiencies gains we have to offer.
Before concluding, we would also like to take this opportunity to extend a warm welcome to Emirates Sky Cargo to KwaZulu-Natal. We are sure that the air cargo services you offer will be well received and well supported by local industries.
We would also like to thank the South African customs service for their co operation and participation in designing the new multi-user Dube Trade Port Cargo Terminal.
Thank you for your vision and foresight. This model of operations, although new in the South African context, will indeed prove to be the preferred mode of air cargo operations in the country.
In conclusion, we would like to reiterate that the new international airport and Dube Trade Port represents one of the most exciting infrastructure investments in this country for the past 50
years. We hope that the private sector, working closely with Government, will take maximum advantage of the economic development and commercial opportunities which will arise once the project goes into live operations.
I thank you.
Issued by: Department of Economic Development and Tourism KwaZulu-Natal Provincial Government
Source: Department of Economic Development and Tourism KwaZulu-Natal Provincial Government (http://www.kwazulunatal.gov.za/)
