Port of Call

The Essence of Dube TradePort

The Dube TradePort is an advantageously located world-class infrastructural development for South Africa, combining a new and contemporary international airport with an adjacent and comprehensively packaged trade port, all integrally designed to promote tourism and the flow of manufactured goods entering and leaving the country.

The Dube TradePort will, in essence, serve as a catalyst for significant economic growth and development and the creation of sustainable employment opportunities.

Located in the province of KwaZulu-Natal, on the strategically important east coast of South Africa and in close proximity to two of Africa’s busiest and biggest harbours – Durban and Richards Bay – the Dube TradePort is destined to become Southern Africa’s global trade gateway, through the region’s combined sea and air capabilities.

Together with its two harbours in Durban and Richards Bay and, now, the advent of a major trade port and sea-level-located international airport, KwaZulu-Natal will rapidly emerge as a major South African business hub and a hyper-critical launch pad for trade with the South African hinterland, sub-Saharan Africa and the world, inclusive of Indian Ocean Rim countries, the Far East, the Americas and South Africa’s European trading partners.

The first phase of the Dube TradePort development will be fully operational by 2010, heralding significantly improved access to Durban and KwaZulu-Natal ahead of the FIFA World Cup. This phase will include international airport’s runway, passenger and cargo terminals, an Agri-Zone and IT Platform.

Dube TradePort – Airports Company South Africa Association

In December 2006, a Co-operation Agreement was signed between Dube TradePort and the Airports Company South Africa (ACSA).

In terms of the agreement, ACSA will build, operate and own the new international airport and the passenger terminal. The Dube TradePort company will, in turn, exclusively own, manage and develop the TradePort, inclusive of the Agri-Zone and IT Platform, together with the cargo-handling terminal within the airport.

The remaining land is to be developed by Dube TradePort and ACSA in a Joint Venture.

Construction

A R6,7 billion contract has been concluded with the Ilembe Consortium, a joint venture comprising 13 companies, for the construction of the Dube TradePort.

The project includes a strong focus on Black Economic Empowerment (BEE), with 70% BEE spend on local procurement, and an emphasis on corporate social responsibility and enterprise development.

Engineering, Procurement and Construction Contract

The design, construction and maintenance of the Dube TradePort were procured as an Engineering, Procurement and Construction (EPC) Contract.

In terms of an EPC Contract, the contractor agrees to deliver the ‘keys’ of a commissioned plant to the owner for an agreed amount.

Ilembe Consortium was appointed in December 2006 as the preferred bidder and after lengthy negotiations an EPC Contract was concluded between the Airports Company  South Africa (ACSA) and Ilembe Airport Construction Services (Pty) Ltd in June 2007.

The agreed contract price totals R6,8 billion, split between Dube TradePort and ACSA as follows:

• Dube TradePort         R1 356 863 003; and
• ACSA                         R5 469 659 646.