Address at the occasion of Sod Turning of La Mercy Airport by Jeff Radebe, MP Minister of Transport

Programme Director,
MEC for Finance, Zweli Mkhize
MEC for Transport and Safety Liaison, Bheki Cele,
Ethekwini Executive Mayor, Obed Mlaba,
Airports Company South Africa (Acsa) CEO, Monhla Hlahla,
Leaders of Ilembe Consortium,
Distinguished guests,
Ladies and gentlemen

Today's sod turning ceremony marks a watershed moment in our intensified efforts to meet the demand for airport infrastructure. This demand arose as a result of our buoyant economy and in anticipation of an influx of visitors to our shores for the 2010 Soccer World Cup and beyond. We are indeed pleased that a positive Record of Decision (ROD) in respect of the environmental impact assessment has been attained. It is now as you have seen all systems go for the building of a new international airport and trade port here at La Mercy.

Construction of the facility began on 24 August following the announcement of the ROD by the Ministry of Environmental Affairs and Tourism on 23 August. This ladies and gentlemen demonstrates the urgency and the seriousness with which we are endeavouring to get the country ready for 2010 and to put in place the much needed infrastructure.

It is our stated objective as the government to invest in infrastructure development in all sectors of our economy as way of laying the platform for accelerated and shared growth. The investment in infrastructure, we believe, will facilitate accelerated economic growth in line with the government's strategic objectives.

Furthermore, it goes without saying that the transport infrastructure is a key enabler of economic performance hence the numerous initiatives in this particular regard. Because of the location of the current Durban International Airport, expansion opportunities of the site have been limited. There has also been a perception that the 2,4 km runway is too short for long haul aircraft, thus limiting the region's economic and tourism potential.

The airport at the La Mercy site has been planned to be fully operational by 2010 and to have the capacity to handle 7,5 million passengers annually with a 3,7 km runway that will accommodate long-haul and new generation aircraft such as the A380. It is envisaged that the airport will be expanded in the future so that is able to handle the projected 45 million passengers annually by 2060.

Ladies and gentlemen Durban, this beautiful city of Durban is already a very popular tourist hot spot and the new airport should go a long way in making travelling in and out of the city an enjoyable and hassle free experience.

Let me take this opportunity therefore and use this platform to congratulate Ilembe Consortium for winning the tender to design and build the new airport and Dube TradePort. With the construction and operation of the airport at the La Mercy site, many job and business opportunities will be created.

It is estimated that about 270 000 jobs will be created directly and indirectly as a result of this project. In addition to that, it is envisaged that this project will contribute positively to the national Gross Domestic Product (GDP) on the back of about R7 billion in fixed investments and increased government revenues and taxes of around R4,3 billion.

Therefore, it is very clear that our airports are an essential cog of the country's transport system and have a crucial role to play particularly in respect of tourism. This sector of tourism is one of our country's key launch pads for further economic development.

In addition, the new airport together with the auxiliary Dube Trade Port will enable growth in trade and business development. The port will serve as catalyst for economic growth and job creation in the region as it will among other things enable local exporters to effectively tap into global markets.

During the construction phase which has just started, business opportunities are abound and special emphasis will be placed on black economic empowerment in line with government procurement policy. We therefore, encourage previously disadvantaged entrepreneurs to take advantage of the procurement prospects flowing from this R7 billion project.

All the planning that went into this project has now borne fruit and I would like to thank all the stakeholders who made it possible for this project to take off.

I would also like to thank my Director-General, Mpumi Mpofu and also thank managing director Acsa, Monhla Hlahla. Let me also thank MEC Zweli Mkhize for his political leadership and the CEO of the Dube Trade Port Rohan Persad.

I am also happy that we are launching this project as we begin with the countdown of 1 000 days to the 2010 Fifa Soccer World Cup.

The work we are doing here should bury whatever doubts that might still exist about our state of readiness for hosting the 2010 Soccer World Cup.

Viva La Mercy viva, viva Dube Trade Port viva!

I thank you

Issued by: Department of Transport
14 September 2007