Jul 29, 2011
Ekurhuleni unveils ‘aerotropolis’ growth and development visionBack
Aviation|DURBAN|Ekurhuleni|Africa|Engines|Safety|Africa|South Africa|OR Tambo International Airport|Ground-to-air Shipping Network|Logistics|Manufacturing|Products|Services|Transport|Environmental|Infrastructure|John Kasarda|Mondli Gungubele|Proximity
© Reuse this
“We have made the decision that, for Ekurhuleni to become a preferred destination for growth and development, we need to adopt a particular strategy which is appropriate for the city. We are, therefore, pursuing the aerotropolis model, which talks to exploring economic opportunities around an airport city,” says Gungubele.
The concept calls for the city’s layout, infrastructure and economy to be centred around a major airport so as to take full advantage of the business spin-offs associated with such proximity – OR Tambo already provides a ground-to-air shipping network and accessibility.
Gungubele explains that a third of international trade is through goods and services and, by 2029, air passengers will double, while air cargo should triple.
“We are host to 1.5-billion kilometres of optic fibre, which has the potential to connect Ekurhuleni and offer a multi- plicity of services that will reduce the cost of business, which will enable entrepreneurs to connect with the city and the world.”
Gungubele adds that, because an aerotropolis relies on efficiency in logistics, the primary infrastructure required is logistics related.
“Having an airport to connect with the world, we thought that, for us, the best dream to follow is that of an aerotropolis economy, which is the growth path chosen by Ekurhuleni.”
To make it a success, the metro is conducting a feasibility study to inform strategy by the end of the year and will be rolling out optic fibre worth R40-million to actualise services.
Gungubele says that the city will be signing a memorandum of understanding with the South African Maritime Safety Authority (Samsa) to turn the metro’s lakes into areas of interest to provide job creation oppor- tunities.
Samsa is mandated to promote South Africa’s maritime interests and development and position the country as an international maritime centre, while ensuring maritime safety, health and environmental protection. This mandate is extended to include inland waterways accessible to the public.
He notes that Ekurhuleni has also opted to follow a programme of township economic development in trying to support established and emerging small and medium-sized enterprises.
“There is a lot of potential in our townships and it must be possible to identify different types of entrepreneurs and support them in terms of developing their skills and marketing their products.”
He confirms that the establishment of an aerotropolis calls for the growth of light manufacturing, and the city is in the process of engaging Airports Company South Africa, the Department of Transport and the provincial government to form partnerships in this regard.
Kenan Institute of Private Enterprise strategy and entrepreneurship director Professor John Kasarda, who is assisting the City of Ekurhuleni in implementing its aerotropolis, says that airport terminals have become sophisticated revenue-generating engines featuring brand boutiques, speciality retail and upscale restaurants, along with entertainment and cultural attractions.
“The new way of doing business is changed by connectivity through aviation, speed and agility, which translate into jobs and opportunities, tax revenues and competitiveness in the new speed-driven economy.”
He warns that cities do not compete but regions do.
Kasarda elaborates that Durban is considering implementing an aerotropolis, which will augur well with the Dube TradePort, and adds that it is pertinent for countries with airports of all sizes and ages to implement the concept.
He urges the City of Ekurhuleni to leverage its unique resource, OR Tambo International Airport, as an engine to connect to the world in a speed-driven economy.
Edited by: Martin Zhuwakinyu© Reuse this Comment Guidelines (150 word limit)
Other Construction News
Updated 3 hours ago After fully acquiring Nungu Trading 88 through a sale of shares and claims agreement, earlier this month, property group Texton Property Fund is now the sole owner of the 3 865 m2, AAA-grade office property Babcock House, in Bedfordview. Tenanted by Babcock Ntuthuko...
Updated 4 hours ago Marking one of the biggest private sector-led commercial property developments in Johannesburg’s inner city, property groups Attacq and Atterbury Property Holdings are a week away from the soft launch of the R1.3-billion Newtown Junction mixed-use development, in the...
Updated 5 hours ago African investment management firm Thebe Investment Corporation has acquired a 15% stake in Burgan Cape Terminals, which was, last year, awarded a 20-year contract by Transnet National Ports Authority (TNPA) to develop and manage fuel storage and distribution...
Updated 2 hours 56 minutes ago President Jacob Zuma would next month officially launch the Dube Tradeport, in Durban, as an industrial development zone (IDZ), the Department of Trade and Industry (DTI) announced on Friday. At the launch event, which was scheduled to take place on October 7, the...
Updated 3 hours ago JSE-listed York Timber Holdings on Friday said it expected its operating profit for the year ended June 30 to be between 25% and 30% lower than that of the prior year. As a result of the lower operating profit, combined with a 1% increase in the company’s biological...
Updated 3 hours ago Engineering solutions provider ELB Group has reported an 18% increase in turnover for the year, boosting overall income, from R1.9-billion in 2013, to R2.3-billion for the 12 months ended June 30. Describing this as “a satisfactory result, given the current difficult...
Recent Research Reports
Road and Rail 2014: A review of South Africa's road and rail infrastructure (PDF report)
Creamer Media’s Road and Rail 2014 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail network, the funding and maintenance of these respective networks, and the push to move road...
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
This Week's Magazine
While Ekurhuleni-based transformer manufacturer Reliable Transformers currently designs, manufactures and tests its products according to the SANS 780 specifications for distribution transformers and other applicable transformer specifications, it is working towards...
Global endpoint security solutions company Kaspersky Lab has introduced new measures to prevent cyber criminals from accessing sensitive data, alongside its malware-signature and heuristic device analysis detection methods. Threats to mobile devices have increased...
To ensure uptake and a positive impact, Wireless Fidelity (Wi-Fi) networks in cities must be provided at schools, community centres and commercial centres to enable citizens and government to access information that will improve access to and delivery of services....
Eco-estate Monaghan Farm, located near Lanseria airport, north-west of Johannesburg, has taken a new approach to modern living and sustainability with its 517 ha development, dedicated to farm living.
Forklift and lift-truck distributor Goscor Lift Hi-Reach launched the Genie SX-180, the tallest self-propelled super boom in Africa, in Johannesburg last month. “As the official distributor of the well-known Genie range of equipment in Southern Africa, we are pleased...