Key Takeaways
- The Nelson Mandela Bay municipality has approved a conceptual framework for a multibillion-rand aerotropolis project, which includes a new 3,300m runway and a logistics hub next to the city’s airport.
- The project aims to enable international flights and improve logistics, creating jobs, investment, and long-term economic growth in the metro and surrounding districts.
- The Mandela Bay Development Agency has been tasked with identifying potential partners, funders, and transaction advisers for the project.
- The city’s airport currently has a short runway, limiting its ability to accommodate large planes and direct international flights.
- The aerotropolis project is expected to stimulate economic growth, improve air access, and increase competitiveness for the city.
Introduction to the Aerotropolis Project
The Nelson Mandela Bay municipality has taken a significant step towards developing an aerotropolis, a project that is expected to boost the city’s economy and improve its air access. The conceptual framework for the project was approved by councillors, marking the first hurdle cleared for the multibillion-rand initiative. The proposed aerotropolis involves an airport precinct that would enable international flights and improve logistics, making it an attractive destination for investment and tourism. The project is seen as a catalyst for jobs, investment, and long-term economic growth in the metro and surrounding districts.
Economic Benefits of the Aerotropolis
The city’s acting trade and investment director, Jeremy Dobbin, highlighted the economic benefits of the aerotropolis project. He noted that the city remains dependent on international trade, with imports and exports accounting for 78% of the metro’s gross domestic product (GDP) in 2024. The lack of direct international flights into Nelson Mandela Bay has limited the city’s attractiveness for private sector investment, which is necessary for local economic growth. Dobbin also pointed out that the city’s short runway is a major constraint, requiring goods to be transported to Johannesburg before they can be exported. The aerotropolis project is expected to address these challenges and stimulate economic growth.
Challenges and Concerns
However, some councillors expressed concerns and questions about the project. Ward 5 councillor Terri Stander noted that there were several requirements before the report could go to council, including a feasibility study and a technical feasibility study. DA councillor Masixole Zinto questioned whether there had been any engagements with the Coega Development Agency regarding previous talks of an airport at the SEZ. Responding to these concerns, acting economic development executive director Wandisile Makwabe said that some of the land was owned by the metro and also by ACSA, and that the city must approve any development applications and put in bulk infrastructure.
Role of the Mandela Bay Development Agency
The Mandela Bay Development Agency (MBDA) has been tasked with identifying potential partners, funders, and transaction advisers for the aerotropolis project. MBDA chief executive Anele Qaba said that the project had been on the agency’s radar for some time, in collaboration with the department. The agency is expected to play a key role in supporting catalytic projects such as airport expansion to get direct flights, as well as an ICC. The city has also moved to yank back control of the MBDA, ordering the agency to resume frequent reporting to the economic development committee after years of drifting beyond the city’s oversight.
Conclusion and Next Steps
In conclusion, the Nelson Mandela Bay municipality’s plans to build an aerotropolis have cleared the first hurdle, with councillors approving a conceptual framework for the project. The project is expected to stimulate economic growth, improve air access, and increase competitiveness for the city. However, there are still challenges and concerns that need to be addressed, including the feasibility study and technical feasibility study. The Mandela Bay Development Agency will play a key role in supporting the project, and the city will need to work closely with stakeholders to ensure the project’s success. The next steps will involve further planning and engagement with stakeholders, including the identification of potential partners, funders, and transaction advisers.
