Chapter 7 Collaborative and cooperative governance mechanisms in Durban
7.2 Stakeholders and partners of the Durban Aerotropolis
7.2.3 State-owned agencies
State-owned agencies are entities fully or partially owned by government and include Dube TradePort, Tourism KZN, ACSA and Trade and Investment KZN.
128 7.2.3.1 Dube TradePort
Dube TradePort is a corporation responsible for operation of the Dube TradePort Special Economic Zone. It was created to encourage increased levels of local investment and FDI in KwaZulu-Natal and the wider South Africa. Dube TradePort has also been charged with the responsibility of developing the province’s biggest infrastructure project, the Durban Aerotropolis.
7.2.3.2 Tourism KZN
According to the CEO of Tourism KZN (TKZN) (12/05/2016), “an airport is an airport because the planes are taking off and landing, if no plane lands and no plane takes off, it is not an airport- it is a building”. His statement came after he was asked what the role of TKZN is in strategic planning and implementation in the Durban Aerotropolis, to which the response was
“tourism, tourism, tourism”. He further commented that when airlines want to express interest in a specific destination or a route to a specific destination, the first people they ask to speak to are the tourism authorities. He said it does not matter which country they may be in talks with because “the first person that airline wants to meet is the tourism authority because they see tourism as the greatest [opportunity]”.
The involvement of TKZN was therefore crucial, whether or not they may have wanted to be part of the project because the first point of communication of airlines was their office.
Furthermore, he stressed that although many people think that the airlines speak to the airport first, the reality is that airlines meet with the tourism authority, “even before they want to see the airport”. Their duty was merely to instil a sense of confidence to the airlines. This, they did by building a strong case of demand for the airline. This is what the CEO of TKZN (12/05/2016) said:
So we were very critical in the sense that to give confidence to the airlines it was important that we be seen to be part of the project to be supporting it because at the end of the day the airline will not fly just for the sake of flying it must make business sense. There must be a demand, there must be either an existing demand in that the people are moving between that place and another place albeit indirectly or so,
TKZN plays a role in stimulating demand for more routes and airlines by advertising and marketing the city as a great tourism destination and engaging a number of different players
129 and stakeholder in the tourism value chain. The entity is also responsible, as the tourism authority, for ensuring that hotel infrastructure, compelling attractions, and great experiences are on offer that can be put together and presented as a package for attracting tourists to the city of Durban and the province of KwaZulu-Natal. The CEO of TKZN (12/05/2016) also made it a point to assert that what they do is only one part of the demand stimulation because, obviously, there are other elements of business that need to be taken into consideration such as ensuring that the economy is able to generate air cargo demand or business travel demand.
7.2.3.3 Airports Company South Africa
Airports Company South Africa (ACSA) runs King Shaka International Airport in Durban.
According to ACSA’s Manager for Communications and Branding (04/08/2016), ACSA initially had the title deed for the land on which the Durban Aerotropolis is built but this changed in 2006 when they signed a corporation agreement with the Dube TradePort Company in which it was decided that they would own a certain portion of the land and ACSA would own a certain percentage of the land. A decision was then made to work together to create a joint venture between ACSA and Dube TradePort where both organisations play a role in developing pockets of land in the precinct, the TradeZone, the airport and ultimately the aerotropolis.
The Manager for Communications and Branding (04/08/2016) further said that in looking at the aerotropolis concept, one needed to understand that the airport is the centre of business. So essentially, they are key and strategic partners in the sense that the backbone of this entire Dube Aerotropolis relies and depends on the existence of an airport which is an establishment under ACSA’s ownership.
ACSA is a strategic partner in the airport development process and future upgrades of the airport, in line with what Dube TradePort wants to do regarding the future of the airport. Dube TradePort has an understanding of the aspirations of and plans of ACSA for the airport, given that ACSA has its own separate masterplan for the airport. Their duty has also been to establish alignment between their land and the wider plans of the Durban Aerotropolis.
Although ACSA is a strategic partner on the Durban Aerotropolis project, “we are very much aware of the fact that decisions have to be made collaboratively” (Manager for Communications and Branding, 04/08/2016). This means that, as ACSA, they are not at liberty
130 to singlehandedly make decisions that will affect the project. The Manager for Communications and Branding also noted that they consult with other key stakeholders (such as Durban City EDTEA and Dube TradePort) regarding anything that impacts on the development of the Durban Aerotropolis to make sure that everyone is on board and that ACSA is not just making decisions alone in terms of development and addressing challenges. Their hope is that they can run parallel with the project, in terms of their developments and their goals to support the province.
7.2.3.4 Trade and investment KZN
According to the Destination Marketing Manager of TIKZN (04/08/2016), the agency is the primary driver of foreign investment in KwaZulu-Natal and also the key facilitator in working with local businesses to get them export-ready and then assisting them in finding international markets for export. As such, in the development of any commercial international strategy, TIKZN becomes a key role player among the various drivers of economic development in the province.
The section above has highlighted the stakeholders from the various sectors that are working together in the Durban Aerotropolis.