La Mercy uses financial incentives to entice users

The KwaZulu-Natal government has announced a number of incentives to encourage airfreight companies to move to the new La Mercy airport. KwaZulu-Natal MEC for Economic Development and Tourism, Michael Mabuyakhulu, said the construction of a new trade port alone would not automatically lead to economic growth and development. Announcing the sweeteners to move, he said: “We are very conscious of the fact that the Dube Tradeport 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 dependent 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 take into account the economic recession,” he said. These pegged rates will apply for the first three years of operations and then be re-negotiated to accommodate market changes and adjustments going forward. Emirates Sky Cargo is the first international operator to announce flights into the new airport. According to Mabuyakhulu, the target is to have “at least” five international destinations served out of La Mercy within the first five years of operation.