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Durban Aerotropolis

Thursday , 20th August of 2015Presentation to eThekwini Planning CommissionCosmas HamadziripiEconomist, Policy and Planning Unit/Aerotropolis ManagementEmail: hamadziripic@kznded.gov.zaTel: 0332642785

KwaZulu-Natal Aerotropolis Strategy (IAS)National Development Plan (NDP)SIPSStrategic Infrastructure Programme (SIP2)Identifies Aerotropolis as one of the infrastructure programmes Provincial Growth and Development Strategy (PGDS)One of the catalytic projects for job creationEDTEA 2014-2019 Strategic PlansPillar for economic developmentJob Creation and Economic growthWhere Do We Want to Go?Policy alignment KZN AEROTROPOLIS STAKEHOLDERSMunicipalities: Ethekwini, KwaDukuza, Ilembe, Msunduzi, uMgungundlovu and Ndwedwe;KZN Provincial Departments: DEDT, Agriculture, Transport, CoGTA, Planning Commission and Treasury;KZN Entities: Dube Trade Port Corporation, Tourism KZN, Ithala Bank, Trade and Investments KZN;National Government: NDoT, DPE, DED, DTI, NDT.State Operated Entities: Transnet, PRASA, SANRAL, Mango, SA Express, SAA and ACSA;Private Sector: Tongaat, Old Mutual, Ingonyama Trust, Growth Coalition, Ilembe Chamber, Durban Chamber, SAPOA, Pietermaritzburg Chamber, etc.KZN INTEGRATED AEROTROPOLIS STRATEGYKZN Integrated Aerotropolis Strategy (IAS)KZN Integrated Aerotropolis Strategy (IAS) formulated and adopted by KZN Provincial Cabinet in October 2015. Aerotropolis DefinitionAn Aerotropolis is a city built around an airport offering its businesses speedy connectivity to their suppliers, customers, and enterprise partners nationally and world wide

A new urban form placing airports in the centre with cities growing around them, connecting workers, suppliers, executives, and goods to the global marketplace

But it is more than a transport complex: It is a strategy... . constellation of physical, institutional, economic and policy interventions which upgrade local assets, reduce ground-based transport times and costs, and expand global connectivity to leverage aviation-enabled trade in goods and services for business competitiveness, job creation and prosperity of those at all socio-economic levels, which in essence defines its very objective.

Conceptually Durban Aerotropolis footprint is 1-hour travel time radius measured from King Shaka International Airport The Brand Durban Aerotropolis adopted by Cabinet

Conceptual FrameworkAn aerotropolis can be defined as a multimodal freight and passenger transportation complex which supports efficient, cost-effective, sustainable development in a defined region of economic significance centered around a major airport. United States Congress H.R.658: Aerotropolis Act of 2011

A new urban form placing airports in the centre with cities growing around them, connecting workers, suppliers, executives, and goods to the global marketplace

But it is more than a transport complex: It is a strategy... . constellation of physical, institutional, economic and policy interventions which upgrade local assets, reduce ground-based transport times and costs, and expand global connectivity to leverage aviation-enabled trade in goods and services for business competitiveness, job creation and prosperity of those at all socio-economic levels Aerotropoli grow primarily in three waysAirport Cities grow outward from terminalsCities grow outward towards the airport Aerotropolis development follows ground transportation corridors Aerotropolis DefinedAerotropolis: The Fifth Wave of Transit-oriented Development in the 21st Century Transportation Infrastructure Has Always Shaped Business Location, Commercial Activity, and Urban DevelopmentCentury

21st

20th

19th

18th

17thAirports shaping business location and urban development in the 21st century as much as highways did in the 20th century, railroads in the 19th and seaports in the 18th6Basic Drivers of the FIFTH WAVELarge jet aircraft (along with IT advances).Globalization (producers & consumers).Speed (time-based competition).Agility (customization & flexible response).Connectivity (worldwide enterprise networks).Perishability (pharma, fish, flowers, fashions).Tourism (especially international).See: John D. Kasarda and Greg Lindsay Aerotropolis: The Way Well Live Next (2011)Aerotropolis FormsFunctional FormNon-Spatial (often non-observable)Physical FormSpatially Observable DevelopmentConnections/LinkagesAir RoutesHighwaysRail NetworksLinks to PortsAerotropolis Physical Form

9Durban Aerotropolis Comparative AdvantageStakeholder Support and Political willProximity two largest Ports in Africa (Durban and Richards Bay)State of the art road, rail, broadband infrastructureLocated in a Green Field spaceNewly built and purpose designed international airport with a 60 year plan10Critical Success FactorsSpecial Economic Zone (SEZs) designation around Durban King Shaka International airport, Richards Bay SEZ and Regional Industrial Economic Hubs Airline attraction strategies (Route development fund)Development of airport alliances to improve connectivityInfrastructure development under the strategic infrastructure projects (SIPs)Strong political will and stakeholder coordination

11Role of Regional AirportsA draft Airport strategy has been developed and alignment with the Aerotropolis strategy achievedIAS recognises the role of regional airports in promoting Durban Aerotropolis. The need for KZN airports to complement rather than compete with KSIA is underscored. One condition necessary for the development of an Aerotropolis is critical mass and the ability of KSIA to increase passenger throughput. IAS identifies the following interventions that align KZN regional airports with the Aerotropolis:Identify passenger and cargo latent demand for air links to KZN regional airports, prioritising infrastructure upgrades at airports that will support KZN IAS strategic goals.

Develop regional airport infrastructure to support Aerotropolis initiative

Identify developments that should take place in regional airports to support the Aerotropolis

SECTORAL OPPORTUNITIESAgro-ProcessingCut FlowersBiofuelsPort-Airport SynergyRetail TourismRetail DistributionGrowth of the Automotive SectorElectronicsRenewable Energy TechnologyClothing and TextilesPharmaceuticalsKZN AEROTROPOLISSTRATEGIC VISIONTo develop a globally and regionally connected, viable and sustainable Aerotropolis that spans the area covering one-hour travel from the KSIA terminalTo grow KSIA connectivity to major international hubs in Africa, Europe, North America and Asia.Maximise commercial development of airport city and connectivity to other major economic nodes in KZN.Most globally competitive city region in Africa for businesses that seek a location that with unique features of Durban Aerotropolis.Ground connectivity and flexible mobility

KZN INTEGRATED AEROTROPOLIS STRATEGY

KING SHAKA INTERNATIONAL AIRPORT15

17Airport City Aerotropolis KZN: Development StrategyRecommendations for FIFA WF development strategies and programmesStrategic Goal 1: Enhance air services and connectivity to major hubsStrategic ObjectivesProposed Interventions1. To develop KSIA into becoming an alternate air passenger hubInfluence NDoT policy on traffic rights.Align KZN programs to NDoT air services negotiations.KZN representation in all negotiations.Solicit support of 3 national carriersIntegrated approach to airline negotiations: DTPC, TIKZN, TKZN, City & KSIA.2. To grow air cargo to achieve full utilisation of Recruit supply chain agencies: freight forwarders, shippers, integrators, etc. to locate in the airport city.Explore wide body aircraft utilisation for regional flights.Explore port synergies by building a repackaging of light and high value goods.Identify passenger and cargo latent demand for air links to KZN regional airports, prioritising infrastructure upgrades at airports that will support KZN IAS strategic goals.Develop regional airport infrastructure to support Aerotropolis initiativeLever 1 Growing Air Connectivity & Services KZN INTEGRATED AEROTROPOLIS STRATEGYRecommendations for FIFA WF development strategies and programmesStrategic Goal 2: Integrated and coordinated spatial planning by all KZN governmental stakeholders at local and provincial levels.Strategic ObjectivesProposed InterventionsTo inform, improve and guide development interventions with a view to promoting spatial concentration.Map core Aerotropolis study area.Identify key destinations/nodesAnalyse transport linkagesDevelop SDF for Aerotropolis study area.Spatial concentration and densificationCross sectoral project implementation and integrationCluster economic activity around nodes and corridors.Optimal land use mixIdentify developments that should take place in regional airports to support the AerotropolisLever 2 Integrated and Co-ordinated Spatial Planning KZN INTEGRATED AEROTROPOLIS STRATEGYRecommendations for FIFA WF development strategies and programmesSD

Strategic Goal 3: Equitable and inclusive growth that will address the tripple challenges of inequality, poverty and unemploymentStrategic ObjectivesProposed InterventionsTo bridge the economic divide that is evidenced by the huge gap between the 1st and 2nd economiesNew SMME entrance into key clusters.Leverage key offerings of state entities like SEDA, Ithala, etc.Fully explore employment incentives like EPWP, Jobs Fund and Youth Wage Subsidy.Skilling and reskilling programs for start-upsExtend SEZ incentives to township businesses.Address barriers to labour absorption in key sectors.

Lever 3 Equitable and Inclusive Growth KZN INTEGRATED AEROTROPOLIS STRATEGYRecommendations for FIFA WF development strategies and programmesSD

Strategic Goal 4: Full commercial development and occupation of all land parcels in the airport city and its immediate surroundings.Strategic ObjectivesProposed InterventionsTo position airport city as an ideal location for businesses that to take advantage of locating near a growing international airport.Land release program that seek to stimulate high tech manufacturing and processing.Bulk service delivery that support key developments.Unlock regulatory burden to speed business set up.Full implementation of SEZ incentive scheme.Explore PPP models and joint developmentsInvestment promotion and facilitationEnvironmental protectionLever 4 Business Growth & Development KZN INTEGRATED AEROTROPOLIS STRATEGYRecommendations for FIFA WF development strategies and programmesSD

Strategic Goal 5: Optimum knowledge support, thought leadership and human capital that meet industrial and commercial needsStrategic ObjectivesProposed InterventionsTo attract, develop and retain specialised skills required for KZN Aerotropolis that enhance global competitiveness.Thought Leadership:Establish Aerotropolis Institute in partnership with HEIs.Educate next generation of Aerotropolis leaders.Create knowledge economy around key sectors.Continuous supply-demand analysisCollaborate with KZN HRD team.International conferences and workshops.Lever 5 Knowledge Support and Human Capital KZN INTEGRATED AEROTROPOLIS STRATEGYRecommendations for FIFA WF development strategies and programmesSD

Strategic Goal 6: Efficient integrated multimodal transport networks that meet international standards of 1st and last mile of air travel.Strategic ObjectivesProposed Interventions1. To influence the development of efficient road and rail linkages to KSIA those that connect the major commercial nodes within the Aerotropolis study area.Freight generating activities on N2 and N3 corridors.Identify origin and destination of freight types.Determine and establish logistic requirements to support freight along key corridors.Establish intelligent transport capabilities.Prioritise road-based transport corridor links to townships and rural areas. 2. To develop an efficient public transport system that will discourage the use of private vehicles. Mapping of public transport networks in relation to Aerotropolis development.Classify public transport requirements to and from tourism nodes, places of work, job opportunities and households.Identify PRASA infrastructure requirements/upgrades to existing rail links and new link to airport.Link up Aerotropolis ground transportation plans with those of the citys IRPTN.3. To divert time sensitive road-based freight destined for Gauteng and other neighbouring states to air cargo. Analyse air routes/destinations served by KSIA.Establish freight corridor between port and airport.Develop mechanism to release containers with high value goods for distribution via KSIA.Establish logistics support systems required between port and KSIA.Lever 5 Integrated Multimodal Transport Network KZN INTEGRATED AEROTROPOLIS STRATEGYRecommendations for FIFA WF development strategies and programmesSD

Strategic Goal 7: Globally competitive and strong place brand: Durban Aerotropolis as positioned in minds of target marketStrategic ObjectivesProposed Interventions1. Develop Brand: Durban Aerotropolis and position it as top of mind corporate identity that will project a globally competitive airport city region.Research brand elements consistent with Aerotropolis.Design brand imagery and develop CI manual.Test market new brand identity.Stakeholder buy-in.Brand values and promises.Subscribe to Global City Index for continuous evaluation.2. To influence the development of an urban form that is consistent the Durban Aerotropolis brand attributes. Align brand imagery to urban design form.3. To position the Aerotropolis as the best tourist destination in Africa. Engage TKZN, SA Tourism and Brand SA to align their messages to support Durban Aerotropolis.Provide input on implementation of KZN Tourism Strategy and the NTSS.4. To position KSIA and the Aerotropolis as the most profitable destinations for airlines looking for a secondary hub in South Africa. Exhibition at key events attended by airlines like World Routes and IATA Slot Conferences.Relationship marketing to airline executives and network planners.5. To position the Aerotropolis as the best place to locate ones business and as the best investment destination. . Use various international platforms like conferences and trade shows to showcase Durban Aerotropolis.Develop a media plan for execution in various local and international industry publications and electronic media. 6. To position the Aerotropolis as the best host for major international events in areas of sport, MICE, cultural, etc. Highlight regions history of hosting major international sport, MICE and cultural events.Link hosting of major events with other strategic plans like those in tourism, airlift, investment promotion, etc.Showcase key event infrastructure like ICC, Moses Mabhida, Kingmead, Kings Park, etc.Leverage on the hosting of major events and involvement of airlines in events like World Jam, World Routes, Durban July, Comrades, Top Gear, etc.Lever 7 Place Marketing KZN INTEGRATED AEROTROPOLIS STRATEGYRecommendations for FIFA WF development strategies and programmesSD

Strategic Goal 8: An Advanced and Telecommunications Infrastructure that Supports a Total Smart City Solution for Durban Aerotropolis Strategic ObjectivesProposed InterventionsTo develop the most technologically advanced, smart city solution in Africa that will provide the cheapest and fastest broadband connectivity at the lowest cost for businesses and residents located within the Aerotropolis Reduce cost of accessing infrastructure:Collaboration of major stakeholders pooling of buying power; andWork closely with DoC, SITA, etc.Smart City Solution:Aviation, tourism, cargo, customs, etc; andSmart economy, people, governance, mobility, living, environment, buildings, etc.

Lever 8 Advanced Telecom Infrastructure KZN INTEGRATED AEROTROPOLIS STRATEGYRecommendations for FIFA WF development strategies and programmesSD

Strategic Goal 9: A Solid Municipal Infrastructure and Engineering Services that Support a Continuous Supply of Bulk Services. Strategic ObjectivesProposed InterventionsTo develop and maintain an infrastructure that will ensure that no municipal services are interrupted, which would affect the local businesses and residents.Identify infrastructure investment, especially in ageing infrastructure for water, sanitation, electricity and roads.Explore bulk contributions by developers SEZ areas.Influence the prioritisation of key developments through municipal IDP processes.Manage demand and supply of bulk services in priority areas.Lever 9 Infrastructure and Engineering Services KZN INTEGRATED AEROTROPOLIS STRATEGYRecommendations for FIFA WF development strategies and programmesSD

Strategic Goal 10: A Sustainable Durban Aerotropolis that Embodies Economic Viability, Environmental Integrity, Social Inclusion and Strong LeadershipStrategic ObjectivesProposed InterventionsTo ensure that the development of the Durban Aerotropolis is sustainable in areas economic, environmental, social and leadership areas Reduce carbon footprint and noise levels.Waste managementGreen corridors allowing for open spacesBuild local economic base.Promote sustainable and responsible tourism.Skills base and local job creation.Sustained economic growth.

Lever 10 Sustainability KZN INTEGRATED AEROTROPOLIS STRATEGYCoordinating StructureKZN Provincial CabinetCustodian of the Aerotropolis initiativeKZN Economic CouncilChapter 3 of the KZN Social Accord which include Aerotropolis and Maritime have been drafted and awaiting ratification by Social partnersStrategic Infrastructure Programme (SIP2)Identifies Aerotropolis as one of the infrastructure programmes- Regular updatesESID ClusterOversees ImplementationEDTEACoordinating implementationMunicipal Executive Councils (eThekwini, iLembe, KwaDukuza etc0Custodian of the Aerotropolis initiativeRecommendations for FIFA WF development strategies and programmesAerotropolis Development Corporation (DTPC)KZN Government(EDTEA Aerotropolis Unit)ESID ClusterWorking Groups x 4(Multi stakeholder)Aerotropolis Steering Committee (ASC)-Multi StakeholdersKZN CabinetProposed Institutional MechanismsMunicipal Executive CouncilsKZN INTEGRATED AEROTROPOLIS STRATEGYAn Aerotropolis Steering Committee (ASC), chaired by EDTEA HOD is driving the implementation of the KZN Integrated Aerotropolis Strategy. The committee is being assisted by the following four working groups:Work Group 1 (Route Development, Air Services, Tourism and Place Marketing)Work Group 2 (Spatial Planning and Commercial Development and sustainability)Work Group 3 (Multimodal Transport and Infrastructure)Work Group 4 (Equitable Growth, Knowledge Support, ICT and Smart City)A Programme Management Unit (PMU) to assist with Aerotropolis project conceptualisation, coordination of the various stakeholders, project finance and investment attraction is being establishedDurban Aerotropolis Implementation StructureForumeThekwini RepresentationAECExecutivesASC

Mr Musa MbheleMr Steve AngelosMr Takalani RathiyayaWorking Group 1Mr Phillip SitholeMr Perry Moodley Mr Russell CurtisWorking Group 2Mr Ndumiso Mlambo,Mr Steve AngelosMs Helene EpsteinWorking Group 3Greg EvansPaul SessionsWorking Group 4Mr Ajiv Maharaj Mr Robert DlaminieThekwini Representation in the Aerotropolis StructuresDurban Aerotropolis Master Plan (DURAMP)The Master plan therefore aims at addressing the defining aspects of the Durban Aerotropolis that include, inter-alia, the following:Land use (Industrial, Environment, Property, Recreation, Residential, conservation, agriculture)Infrastructural requirements (water, sanitation, sewage, road and rail networks)Corridors and nodesPublic transportAirport city modelInvestment Appointment of the Service Provide is underwayExpected completion date for the Master Plan is March 2015

Aerotropolis Catalytic Project ProjectWhat needs to be donePublic TransportNeed for Public transport connecting Durban and the City to boost demand for Air servicesPursue Light rail/monorail plans with PRASAHarmonising stakeholder plans with the Durban Aerotropolis Master plan , for example PRASA Light commuter rail exclude Dube city, this might lead to duplication.Bulk infrastructure within Dube CityStrategic road links to Cottonlands (MIIT / TradeZone 4) precinctNew interchange between R102 and M65 required to connect cotton lands. A new regional waste treatment works that will amalgamate a number of existing ones required within the Aerotropolis region.Prioritising Bulk waterBulk electricity supply for new developments such as Cotton lands requiredA committee led by the City is currently looking at ways of addressing Bulk and Sewage treatment worksRole of eThekwini Municipality in the Implementation of KZN Integrated Aerotropolis Strategy (IAS)Infrastructure development- (water & sanitation, connecting roads, public transport)

Promote Export Development

Collaboration in the implementation of KZNIAS

Investment attraction;

Marketing of the Airport city region

Public awareness

Create a conducive environment for Investment in the Aerotropolis region

Reduce Red TapeeThekwini is central to the implementation of IAS given that a large proportion of the Durban Aerotropolis (including Dube City ) foot print is within eThekwini municipal boundary).The need for the IAS to influence the Citys planning in the Northern regionEnsure Aerotropolis finds home in the citys SDFs and IDPsEnsure that eThekwini Council takes a resolution on the adoption of the IAS and its implementationSupport IAS implementation through the following:Potential Benefits for eThekwiniAerotropolis is about forward looking planning and as such it is envisaged that there will be huge capital outlay required in the early years. However, the following benefits will accrue to Durban over the medium to long term:Phenomenal growth of the city through Aerotropolis developmentExpanded rates baseInternational positioning of the Durban brandIncreased Direct connectivityInfrastructure developmentIncreased investment inflow Aerotropolis as a strategy for employment creation and poverty eradicationDevelopment of an Integrated Aerotropolis Master Plan and an Implementation Plan to give effect to the Aerotropolis Strategy:Aerotropolis footprint/ Spatial plan;Land use (industrial, agriculture, residential, recreation);Nodal and corridor development (Transport) plan;Infrastructure (water, sanitation, road, rail, Broadband, electricity) plan;Airport City plan and model;Environmental plan;Investment strategy.Intensify the investment mobilisation for KZN Aerotropolis Social Accord Ensure eThekwini Representation in the Aerotropolis StructuresAlign the Northern Urban Development Corridor (NUDC) strategy with the IASeThekwini adopts and pass a Council Resolution on Aerotropolis to give impetus to future IDP and SDFs reviewsPrioritise bulk infrastructure (Water, sanitation, Electricity, connectivity) in the Airport City

Moving Forward KZN INTEGRATED AEROTROPOLIS STRATEGYThank You