Name of the Project
Durban Cruise Terminal (DCT) project.

Location
Port of Durban, KwaZulu-Natal, South Africa.

Client
Transnet National Ports Authority (TNPA) and the KwaZulu Cruise Terminal (KCT).

KCT, which is 70% owned by MSC Cruises, the largest cruise line operating in South African waters, and 30% by broad-based black economic empowerment investment company Africa Armada Consortium, was declared the preferred bidder for the 25-year concession project in May 2017.

KCT will finance, build, operate and maintain the new cruise terminal.

Project Description
The project entails the design, financing, construction, operation, maintenance and transfer of a cruise terminal facility for a 25-year concession period in the Port of Durban.
 

The terminal will be completed in phases and will eventually be able to accommodate two 91-m-long cruise vessels.

Potential Job Creation
According to KCT, the project will result in the creation of up to 10 000 employment opportunities, of which more than 100 will be direct jobs during the operation phase. KCT has set aside a budget of R3-million for the training and development of more than 100 people during the construction phase.

Value
Capital investment for the project has been estimated at R215-million.

Duration
The 18-month construction phase is expected to begin in January 2019, with operations scheduled to start in October 2020, in line with the 2020/21 cruise season.

Latest Developments
TNPA and KCT consortium officially signed an agreement on April 16 that will result in the construction of the cruise terminal at the entrance to the Port of Durban.  

Speaking on behalf of KCT, MSC Cruises head of global port development and shore activities Gianluca Suprani has said the official signing of the agreement, which was expected to occur before the end of 2017, had taken longer because of the magnitude of the intended greenfield project.

The detailed design phase of the terminal will begin this month and will take nine months to complete, as the detailed design will differ from the initial conceptual visuals that were circulated one-year ago.

The initial visuals were created by a European company, whereas the final design will be done by a local firm and will include “Zulu characteristics”, Suprani has said.  
 

Speaking at the signing ceremony at N-shed on April 16, which currently serves as Durban’s cruise terminal, TNPA CE Shulami Qalinge said the wider vision for the new cruise terminal was to position Durban as a smart port city and a world-class cruise capital that will ultimately create jobs, introduce new technologies and grow tourism.

The new ‘green’ and energy efficient terminal will include features and facilities that will allow for simultaneous embarkation and disembarkation of passengers on multiple vessels. There will be parking for 200 vehicles with kerbside drop-off facilities for 12 buses, dedicated baggage drop-off areas, separate screening and temporary holding areas, as well as separate passenger entry and exit points.

The planned terminal will also be a multiuse facility, with a retail component and multipurpose training, conferencing and events facilities.

Speaking on behalf of MSC, Captain Salvatore Sarno has said the training facility will allow for the training of engineers, mechanics, technical experts, specialist boiler operators and welders. They will be employed in the maintenance and repair of vessels rounding the Cape.

The new terminal is expected to attract larger vessels and more leading cruise liners to South Africa. The cruise season period could also be extended during the 25-year operational phase, resulting in economic spinoffs.

Cruise vessel calls to Durban are projected to increase substantially from 60 a year to more than 150 a year by 2040, with the number of passengers expected to increase from 200 000 a year to more than 700 000 a year.

Transnet CEO Siyabonga Gama has said the signing of the agreement means South Africa’s tourism industry will no longer miss out on the burgeoning growth of the global cruise market, which is estimated to be worth $40-billion.

Key Contracts and Suppliers
KCT (preferred bidder for DCT).

On Budget and on Time?
Too early to state.

Contact Details for Project Information
TNPA acting corporate affairs manager Nompumelelo Kunene, tel +27 31 361 8973 or email nompumelelo.kunene2@transnet.net.
TNPA executive manager: corporate affairs Ayanda Mantshongo, tel +27 11 351 9013 or email ayanda.mantshongo@transnet.net.