Dube Tradeport – cash cow or white elephant?

Proponents and critics debate the issue with FTW ALAN PEAT WILL THE Dube Tradeport cargo facility at Durban’s new King Shaka Airport seriously multiply KwaZulu Natal’s air cargo exports and their producing industries – or will it be a useless white elephant? That was the question being asked as news reached FTW of a scheduled end 2009 completion date for the ambitious facility. Its proponents have only the right words to say about the project, but critics in various sectors of the freight industry are sceptical about its chances – either of being completed in time, or of the promised potential. Certainly, transport minister Jeff Radebe has confirmed to FTW that the new R2.4-billion airport and tradeport will go ahead as planned – with the existing Durban International Airport (DIA) to close in the first quarter of 2010 when the new airport becomes operational. Meanwhile, Hamish Erskine of Dube Tradeport (DTP) is convinced that, although “it’s a tight schedule”, the basic construction of the airport and tradeport will see them ready-to-run at end-2009. The trade zone will have dry and perishable cargo processing facilities; warehousing and distribution facilities; and a rebate facility. “On opening in 2010 the trade zone will occupy an area of approximately 50-hectares, with a cargo terminal and some 24 stands of 1-ha each. It is expected to expand to occupy approximately 200- ha in total. “There will be a 15 000m2 cargo terminal with capacity to handle 150 000- tonnes of cargo per annum. Area has been reserved to expand the cargo terminal facility to 100 000-m² – which at full capacity could handle some 1-million tonnes of cargo per annum.” Erskine highlighted what he described as “a huge” window of opportunity – with direct international air links to long-haul destinations increasing air export of high-value manufactured goods and perishables from KZN. “This will align the province with 21st century manufacturing trends, and complement KZN’s current focus on higher-mass, lowervalue exports.” He told FTW that Southern Africa was experiencing exponential air traffic growth. “As a result of this and airspace congestion at Johannesburg’s OR Tambo International Airport,” he said, “international airlines are seeing the planned King Shaka Airport as an alternate entry point into the Southern African region.” Erskine expected that on the opening in 2010 there would be a weekly schedule of two return flights from the UK and one return flight from Western Europe, South East Asia, the Middle East, and South Asia. “Since direct intercontinental flights from DIA were curtailed in the late 1990s,” he said, “there was a related drop-off in air cargo handled – and an increasing bulk of freight is now being transported via Johannesburg.” This results in at least a one-day delay in the export of time-sensitive goods from KZN – and, in some cases, destroys the competitiveness of local enterprises where product demands such as freshness or just-in-time (JIT) delivery schedules are compromised. “But, more importantly,” said Erskine, “several international studies commissioned indicate that there are realistic prospects for attracting new industries and enterprises into the province if it was supported by state-of-the art airfreight handling facilities. “There are a number of industries – motor components, electronics, clothing and textiles, valueadded logistics – that are critically dependent upon specialised and dedicated air cargo facilities. And, world-wide, these industries are being drawn to premises adjacent to such tailored airfreight environments.” According to DTP figures, it calculated that a potential 183 000-tonnes of cargo could have been exported in 2002 – in contrast to the DIA actually only exporting 6 700-t of airfreight in the same year.