KCT will finance, construct, operate, maintain and transfer the 25-year, R200m-plus concession project.
The company is a joint venture between MSC Cruises SA and Africa Armada Consortium, an investment company that empowers its black financiers through participation in economic activities, in particular port and logistics developments.
Shulami Qalinge, TNPA's chief executive, says: “We are delighted to have concluded terms that will bring benefits to all parties, but most importantly to the City of Durban and South Africa as a growing cruise destination. The new Durban cruise terminal project will see us introducing a new entrant into the market, backed by a global cruise company, with positive socio-economic spin-offs such as tourism development, job creation, skills development and supplier development.”
Representing KCT, Pierfrancesco Vago, MSC Cruises’ executive chairman says: “This agreement represents a great development for MSC Cruises’ South Africa operation. It will also be a major stepping stone for Durban, paving the way for a bright common future for the cruise industry and the city.
"Not only will this ensure a continued growth for cruising here in Durban, and in the whole of Southern Africa, but it will also result in measurable positive socioeconomic effects for the city: we will create many jobs, both during its construction and the operation. This new terminal will also help further develop Durban as an international tourist destination.”
The detailed design phase will commence in April and is expected to be completed by the end of the year. This will 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.
According to the companies, the new green and energy efficient terminal will boast a host of new features and facilities, allowing for simultaneous embarkation and disembarkation of passengers on multiple vessels. Parking will be provided for around 200 vehicles, with kerbside drop-off facilities for 12 buses, security booths at all vehicle access points, dedicated baggage drop-off areas, separate screening and temporary holding areas, as well as separate passenger entry and exit points.
There will be a retail component, as well as multi-purpose training, conferencing and events facilities and adequate space allocated for other ancillary services.
During the off-peak season, the terminal will remain active as it has been designed to serve as a multipurpose facility including a cruise and hospitality training academy, office space for maritime tenants, and a fully-fledged events and conference centre.
According to KCT, the project will result in up to 10,000 employment opportunities generated through a multiplier effect, of which over 100 will be direct jobs during the operation phase, and the future employment of interns in the maritime and cruise tourism sectors.
The company has set aside a budget of R3m for the training and development of more than 100 people during the construction phase. R1.5m will be allocated to bursaries and scholarships for students in related industries.
