Who initiated the Dube TradePort project?
	Is the Dube TradePort a ‘unique concept’?
	Why does South Africa need a multi-modal logistics platform?
	Is the La Mercy site suitable?
	Why can Durban International Airport not fulfil a role in the global economy?
	What impact will the Dube TradePort have on the environment?

Who initiated the Dube TradePort project?

The Dube TradePort project was initiated by the Department of Economic Development (KwaZulu-Natal), but is now both a provincial and national project. The KwaZulu-Natal Cabinet committed itself in 2001 to supporting the relocation of Durban International Airport to La Mercy and to developing the Dube TradePort, which would incorporate the international airport. The provincial government resolved to commit R250 million over five years as equity towards the construction of the Dube TradePort.

South Africa’s National Cabinet decided in 2002 to proceed with the implementation of the Dube TradePort by 2006 and to rename the relocated airport King Shaka International Airport.

Making his State of the Nation address in 2003 President Thabo Mbeki said:

“The improvement of infrastructure at the KwaZulu-Natal coast includes the relocation of Durban International Airport to La Mercy and the establishment of the Dube Trade Port. Within 8 months details in this regard should be finalised for the private sector to be invited to take part in the project.”

Is the Dube TradePort a ‘unique concept’?

TradePorts are characteristic of all competitive and growing economies and can be found in North America, China and the Middle East. They are international best practice for economic development and job creation with a primary focus on participating in the global supply chain.

The Dube TradePort seeks to follow the success of logistic gateways including:

• The Dubai logistics platform which incorporates two ports, an airport and associated bonded areas
• Alliance, Texas which is a private sector multi-modal logistics platform, incorporating a freight driven airport and a Foreign Trade Zone
• Hong Kong and the adjoining Special Economic Zones which are part of a strategy to maintain a position as an international and regional transportation and logistics hub.

Why does South Africa need a multi-modal logistics platform?

The ‘New World Economy’ has evolved through such trends as liberalisation of trade, deregulation and privatisation, the advent of e-commerce and the digital society. As a result, activities in the fields of agriculture, manufacturing and transportation can no longer be considered in isolation from those in other parts of the world. This new economic environment dictates the need to meet world class standards and requires countries and corporations across the world, including South Africa, to compete for a portion of the world market.

South Africa’s international role has traditionally focused on the export of primary materials, including minerals, without effectively competing for the high value added markets of the world.  However, South Africa can compete for these markets by creating a continental gateway as part of the global supply chain and using new concepts and techniques in value added logistics and time critical production.

Comparative labour costs were previously considered the primary measure of competitiveness. However, success in today’s marketplace increasingly depends on logistics and access to the global supply chain. As a result the formula to ensure job creation and economic development, including foreign investment, is concerned with the ability of a location to efficiently participate in the global supply chain. It is critical that South Africa rethink the traditional roles of transportation hubs, including ports and airports. These hubs integrate multiple modes of transportation, including sea, air and land, in addition to addressing the Port Inland Distribution Network.

A continental gateway acts as a focal point for multi-modal transportation and value added activities and a ‘centre of excellence’ focused on utilising best practices in the production, processing and transportation of goods.

It is a critical element of a strategy to promote economic development and job creation, enabling Southern Africa to gain from the benefits of the global marketplace.

Is the La Mercy site suitable?

The La Mercy site is located 28 kilometres north of Durban’s city centre in close proximity to the Indian Ocean.

Initial earthworks were performed at this site in the mid-1970s to provide a platform to accommodate a runway and passenger terminal for the replacement of the Durban International Airport. This is suitable for the proposed logistics platform.

The site is connected by road to the city centre by means of the N2 national highway and R102 which act as coastal feeders between Durban and Richards Bay. Rail access is provided to the site by the Durban-Richards Bay line with a station at Nyaninga which adjoins the site.

This enables the creation of a future inter-modal (road-rail) yard within the Trade Zone as part of the bonded feeder system between the transportation nodes of Durban, Richards Bay and Gauteng).

The noise contours and the site topography enable the creation of high quality residential and commercial developments to the east of the site. This is facilitated by the existing ridge between the runway and the location of the residential and commercial developments. The site location can provide an attractive work, home and resort or recreation environment.

An additional advantage of the location is the advanced telecommunications capability provided at the site by the SAT-3/SAFE cable which lands just north of the site at Mtunzini. This will facilitate the participation of enterprises in e-commerce, including order taking and fulfilment activities.

Why can Durban International Airport not fulfil a role in the global economy?

A comparative analysis of the Durban International Airport and the Dube TradePort shows the difference between the envisaged facility and that which exists already.

What impact will the Dube TradePort have on the environment?

The Dube TradePort development takes place within the context of a hierarchy of environmental policy, legislation and regulations that are applicable to a variety of activities that may affect the environment and which are administered by a range of government departments and authorities.
 
The Dube TradePort development will require an Environmental Impact Assessment (EIA), according to regulations applied in South Africa. Public participation is an integral part of the EIA process and the affected community and other relevant stakeholders will be consulted.

Environmental consultants are part of the financial transaction advisor project team that has been appointed. They are responsible for assessing environmental impacts of the Dube TradePort, including the affect of aircraft noise, changes in land use and the destruction of the natural environment arising from construction.