CABINET GIVES FULL SUPPORT FOR AIRPORT RELOCATION

Issued by: Government of the Kingdom of Kwazulu-Natal

CABINET GIVES FULL SUPPORT FOR AIRPORT RELOCATION TO LA MERCY

Representatives of the KwaZulu-Natal International Airport Development Initiative, the Section 21 Company formed to manage the process leading to the relocation of Durban International Airport to Le Mercy, today updated Cabinet of KwaZulu-Natal on progress that has been made by the Airports Steering Committee.

This Airports Steering Committee was established in May 1996, jointly between the Airports Company, the KwaZulu-Natal Government the Durban Metro Council, Southern and Northern Local Councils and other key roleplayers, to manage the interim upgrade to Durban International Airport and deliver an accelerated relocation package to La Mercy.

Today's presentation was made at the request of the Cabinet and featured a comprehensive update on the recent process undertaken by the Airports Steering Committee to adjudicate the responses to the recent Programme Management proposal call.

The Cabinet expressed its satisfaction with the process and indicated their full support to finalising the relevant Programme Management contracts. In its response, the Cabinet wished to make it clear that the Programme Management phase was to be instituted without delay under the auspices of the Airports Steering Committee. The Cabinet also wished to put to rest any "mixed signals" which might have arisen regarding the future relocation to La Mercy. The project is on track and the earliest possible relocation of the airport is still considered a priority.

Comments made by Singaporean Prime Minister, Goh Chok Tong, who had addressed this week's Inter-Governmental Conference in Stellenbosch which was chaired by Vice President Thabo Mbeki were also emphasised at the Cabinet meeting. The Prime Minister had observed that South Africa is ideally situated as a half-way trading hub between the massive emerging markets of South and Central America and the Far East, and that to capitalise on this global positioning, South Africa will need to focus its resources on infrastructure such as ports and airports in order to strengthen and entrench its position as a conduit for international trade.

Accepting the importance of these comments, Cabinet agreed to reiterate its support for the earliest possible relocation of Durban International Airport to La Mercy, and commended the excellent progress that has been made by the Airports Steering Committee, which is jointly sponsored and driven by the Airports Company and the public and private sectors of KwaZulu-Natal.

The Cabinet also recognised that the relocation of the airport will represent the singlemost important infrastructural project in the Province and that it has significant job creation potential. The project is also viewed as being a contributing factor to the opening of an economic corridor between Durban, Richards Bay and Maputo.

Signed by: Prof O E H M Nxumalo Director-General