Terminal to grab bigger slice of cruise pie

THE CONSTRUCTION of the new R200 million Durban Cruise Terminal is expected to set up Durban and KwaZulu-Natal to maximise South Africa’s share of the growing global cruise tourism industry.

Transnet National Ports Authority (TNPA) and the KZN Cruise Terminal (KCT) signed the agreement that will see the delivery of the facility at the Port of Durban by October 2020.

The detailed design phase has already commenced, and is expected to be completed by the end of the year.

It will then be followed by an 18-month construction phase from January 2019 to July 2020, and the cruise terminal is expected to commence operations in October 2020, kicking off the 2020/21 cruise season.

Transnet Group chief executive Siyabonga Gama said the signing marked a crucial milestone towards achieving a slice of the market.

“The signing will see Transnet introducing new entrants Armada Consortium into the market, backed by a global cruise company – MSC Cruises SA. This will bring positive socio-economic spin-offs such as tourism development, job creation, skills development and supplier development,” said Gama.

KCT was announced last year as the preferred bidder for the 25-year concession project.

Gama said in a few years, the rise of a much-needed, brand new cruise terminal for Durban would also see new technologies implemented as well as tourism numbers boosted for Durban and South Africa.

“The global cruise tourism industry is worth a staggering $126 billion a year. It creates more than 1 million jobs and last year – 2017 – 24.7 million passengers were transported. This is a huge economic impact, but where our share is miniscule.”

Transnet said the agreement was set to fundamentally change the current landscape, being the perfect example of an Africa that was rising, and a marine economy that was re-inventing itself.

Gama said Transnet had adopted the Transnet 4.0 Strategy, which was focused on repositioning Transnet as a global integrated logistics service provider.

“The strategy aims to grow Transnet to a R100bn business by 2020 and a top international logistics service provider,” he said.