van goedere tussen globale en streeks ekonomieë deur verbeterde logistiek op die plaaslike skaal ondersteun word. Hierdie artikel ondersoek die aanname Published by the UFS dat langtermynbelegging in lughawe- http://journals.ufs.ac.za/index.php/trp infrastruktuur en verwante nywerheids © Creative Commons With Attribution (CC-BY) How to cite: Hansmann, R. 2019. Specialised airport infrastructure to support connectivity: The case of Dube gebruike voldoende voorwaardes is om Tradeport, eThekwini Municipality, South Africa. Town and Regional planning, no.74, pp. 36-50. handel met groeiende markte suid van die Sahara te ondersteun. ’n Gevallestudie- Specialised airport infrastructure to support benadering, insluitende onderhoude, waarnemings, en dokumentresensies is connectivity: The case of Dube Tradeport, eThekwini onderneem om lugvragontwikkeling by Municipality, South Africa DTP in die eThekwini Munisipaliteit beter te verstaan. Vorige studies oor DTP het gekyk na hoe ruimte in die omgewing van Robynne Hansmann die lughawe gevorm word deur bestuurs- en eienaarskapsreëlings. Hierdie studie fokus op hoe ’n doelgebaseerde lughawe met gebiede wat gespesialiseerde infra DOI: http://dx.doi.org/10.18820/2415-0495/trp74i1.4 struktuur en verwante gebruike bevat, Revised April 2019, Published 30 June 2019 in wisselwerking met die vloei van *The author declared no conflict of interest for this title or article goedere verskil van passasierstrome. Bevindings dui daarop dat, terwyl DTP ’n rol speel in die aantrek van buitelandse Abstract en plaaslike beleggings en verwante South Africa’s policy framework is firmly committed to an infrastructure-led development handel, het strukturele handelsdinamika path in order to support inclusive and widespread growth. The implementation of large- ’n impak op Afrika-konnektiwiteit in die scale transportation infrastructure spent on ports, road, rail and airports is positioned to beweging van goedere tussen globale en support multi-scaled growth through trade in sub-Saharan Africa. Convergence of policy streeksekonomieë. and practice-based research findings make a strong case for increasing international Sleutelwoorde: Groenvelde, logistiek, trade in, and within sub-Saharan Africa, through improved international connectivity, lughawe-infrastruktuur, lugvrag regional integration and logistics as a strategy for shifting the growth potential of the region. The development of Dube TradePort (DTP), including King Shaka International Airport (KSIA), was based on the rationale that airports support trade and the movement MERALO YA MOTHEO E of goods between global and regional economies, through improved logistics at the IKGETHILENG YA BOEMAFOFANE local level. This article interrogates the assumption that long-term investment in HO TSHEHETSA DIKGOKAHANO: airport infrastructure and related industrial uses are sufficient preconditions to support TABA YA DUBE TRADEPORT, trade with the expanding sub-Saharan markets. A case study approach, including ETHEKWINI MUNICIPALITY, interviews, observations, and document reviews, was used to better understand air- cargo development at DTP in eThekwini Municipality. Previous studies on DTP have SOUTH AFRICA investigated how space is shaped in the vicinity of the airport through governance Molawana wa moralo wa Afrika Borwa o and ownership arrangements. This study focuses on how a purpose-built airport with inehetse ka botlalo ho tsela ya ntshetsopele precincts, containing specialised infrastructure and related uses, interacts with the flow e etelletsweng pele ke meralo ya motheo of goods as distinct from passenger flows. Findings suggest that, while DTP plays bakeng sa ho tshehetsa kgolo e nang le a role in attracting foreign and local investment and related trade, structural trade kenyelletso le e phatlalletseng. Ketsahatso dynamics are impacting on African connectivity in the movement of goods between ya sekala se seholo sa meralo ya global and regional economies. motheo ya transporoto e sebedisitsweng boemakepeng, tseleng, diporong le Keywords: Air cargo, airport infrastructure, Greenfields, logistics boemafofaneng, e beilwe ho tshehetsa kgolo ya “multi-scaled” ka kgwebisano ka GESPESIALISEERDE LUGHAWE-INFRASTRUKTUUR OM KONNEKSIE hare ho sub-Saharan Africa. Kopano ya TE ONDERSTEUN: DUBE TRADEPORT GEVALLESTUDIE, ETHEKWINI- molawana le diphumano tsa dipatlisiso tse itshetlehileng hodima ketsahatso, MUNISIPALITEIT, SUID-AFRIKA di etsa taba e tsitsitseng bakeng sa ho Die Suid-Afrikaanse beleidsraamwerk is stewig verbind tot ’n infrastruktuur-geleide eketsa kgwebisano ya matjhabatjhaba ontwikkelingspad om inklusiewe en wydverspreide groei te ondersteun. Die implemen mona le ka hare ho sub-Saharan Africa, tering van grootskaalse vervoerinfrastruktuurbesteding op hawens, paaie, treine en le ka dikgokahano tse ntlafaditsweng tsa lughawens is geposisioneer om multi-skaalgroei te ondersteun deur handel in Afrika matjhabatjhaba, le kopano ya lebatowa suid van die Sahara. Konvergensie van beleids- en praktykgebaseerde navorsings le tlhophiso tse hlokahalang ho etsa hore bevindings maak ’n sterk saak vir die toenemende internasionale handel in en binne Afrika tshebetso e atlehe (logistics), jwalo ka suid van die Sahara deur verbeterde internasionale konnektiwiteit, streeksintegrasie leano bakeng sa ho tjhetjhisa kgonahalo en logistiek as ’n strategie vir die verskuiwing van groeipotensiaal van die streek. ya kgolo ya lebatowa. Ntshetsopele ya Die ontwikkeling van Dube TradePort (DTP), insluitende die King Shaka Internasionale Dube TradePort (DTP), ho kenyelletswa Lughawe (KSIA), was gebaseer op die rasionaal dat lughawehandel en die beweging King Shaka International Airport (KSIA),
Ms Robynne (R.) Hansmann, Lecturer, Department of Town and Regional Planning, Durban University of Technology, PO Box 1334, Durban, 4000, South Africa. Phone: 0313732666, e-mail:
SSB/TRP/MDM 2019 (74):36-50 | ISSN 1012-280 | e-ISSN 2415-0495
36 Robynne Hansmann • Specialised airport infrastructure to support connectivity: The case of Dube Tradeport, eThekwini Municipality, South Africa
di ne di itshetlehile hodima motheo wa na le tshwaetso kgokahanong ya Afrika economies. While ports play a hore maemafofane a tshehetsa kgwebo bakeng sa ho tsamaisa thepa mahareng dominant role in the amount of goods le tsamao ya thepa dipakeng tsa moruo a lefatshe ka bophara le lebatoweng. moving between international and wa lefatshe lohle le wa lebatowa, ka local trade, airports are significant ditlhophiso tse ntlafaditsweng tse hlokahalang ho etsa hore tshebetso e 1. INTRODUCTION AND in the value of these high-value, atlehe (improved logistics) boemong RESEARCH PROBLEM perishable and time-sensitive ba selehae. goods. Air cargo accounts for less Airports have attracted substantial Atikele ena e botsollotsa monahano than 1% of the world trade tonnage critiques from planners relating wa hore letsete/peheletso ya tjhelete and 35% of the world trade value, ya nako e telele meralong ya motheo to privatisation of spaces and over half of air cargo is moved ya boemafofane le ditshebediso tse (Freestone, 2011), abetting sprawl internationally in dedicated freighters amanang le indasteri, ke ditlhoko tse (O’Connor, 2003), problematic as opposed to wide-belly passenger lekaneng bakeng sa ho tshehetsa land-use interfaces (Stevens planes (Boeing, 2017: 6). Although kgwebo le dimmaraka ka hare ho sub- & Baker, 2013), and reduced Saharan Africa. Mokgwa wa thuto ya international trade is, to a large mehlala, ho kenyelletswa le diinthaviu, environmental amenity (Charles, extent, sea-based and a small ditemoho, le tekolobotjha ya ditaba tse Barnes, Ryan & Clayton, 2007). volume is moved by air, the landside ngotsweng, di sebedisitswe ho utlwisisa Considering the strategic spatial modal choices between air, road and hantle ntshetsopele ya air-cargo ho planning decisions at Dube rail to distribute within the agreed DTP eThekwini Municipality. Dithuto TradePort (DTP) and King Shaka price, time and quality parameters tse fetileng ho DTP di entse diphuputso International Airport (KSIA), this tsa hore na sebaka se bopilwe fall within the field of logistics jwang sebakeng sa boemafofane ka article focuses on DTP’s stated and supply chain management. ditlhophiso tsa tsamaiso ya puso le intention to improve foreign and local On the landside, the geography of monga sona. Thuto ena e tsepamisitse investment through airport-related distributing freight combined with maikutlo hodima boemafofane bo infrastructure. The performance dispersed production across cities ahilweng ka lebaka la dipehelo tse nang of trade emanating from the creates city-wide land-use challenges le meralo e kgethehileng ya motheo le local investment is considered in for managing logistics-related growth. mabaka a amehang; di kopana le ho terms of contradictory dynamics falliswa ha thepa jwalo ka ha di fapane Geographically, airfreight demand impacting on connectivity in Africa. le ho falliswa ha batho. Diphumano di is highly concentrated, with hlahisa hore, le ha DTP e bapala karolo Air transportation plays an integral approximately 85% of scheduled bakeng sa ho hohela letsete/peheletso ya tjhelete e tswang kantle le ya part in production and distribution freighter flights operating selehae, mmoho le kgwebo e amehang; networks supporting the movement from 50 cargo airports across ho fetoha ha sebopeho kgwebong ho of goods between global and local North America, Asia, and Europe (Boeing, 2017: 6). Within Africa, air trade functions across a sparse network and air cargo accounts for some 8% of the total 1.8 billion tons of air cargo originating or destined for Africa. African air cargo is dominated by a few leading economies, with South Africa (16.1%), Egypt (15.9%), Kenya (12.9%), Nigeria (10.7%), Ethiopia (10%) and others (34.3%) accounting for respective shares in international air-cargo flows in 2015 (Boeing, 2017: 36). Bilateral and free trade agreements in Africa are encouraging new intra-Africa air- cargo lanes. However, restrictions, protectionism (Meichsner, O’Connell & Warnock-Smith, 2018:182), the cost and availability of current ground infrastructure (Button, Brugnoli, Martini & Scotti, 2015: 85), and specialised air-cargo infrastructure limit the expansion of air services (Boeing, 2017: 36; Abate, 2016: 328). Figure 1: Geographical concentration of airports Locally, air cargo is highly Source: DUT Department of Town and Regional Planning, GIS Unit concentrated at the OR Tambo
37 SSB/TRP/MDM 2019 (74)
International Airport (ORTIA), where infrastructure case, in order to assess and retail and also the provision of this hub accounts for approximately trade and investment potential. households with consumer goods as 399 781 tonnes (79%) of the well as the related information flows” national share of 504 022 tonnes (Hesse & Rodrigue, 2004: 172). 2. CONCEPTUAL (ACSA, 2018). DTP, incorporating The definition implies two major FRAMEWORK AND KSIA, is specifically designed to interrelated functions of logistics. DEFINITIONS support air-cargo logistics and is The first relates to the physical developing trade flows directly with The significance of airfreight logistics distribution function, with the derived Durban, moving outside the hub. invokes a body of literature on transport segment, and the second Within eThekwini Municipality, KSIA transport geography that investigates relates to the materials management and DTP are located some 40 km how tradable goods move in function with the induced transport north of Africa’s busiest container supply chains. Airports play a role segment (Hesse & Rodrigue, port, serving sub-Saharan Africa. in particular supply chains and, 2004: 172). Physical distribution The proximity raises some interesting although the relative tonnage moving is the “movement of goods from issues on how infrastructure by air as opposed to sea is marginal, the point of production to the point investments can add value to the the demand for component parts and of consumption and materials existing trade-related flows through completed goods delivered on time management includes all the Durban and, in the long run, play a across space drives the demand activities related in the manufacturing role in Southern African Development for air logistics. The prominence of of commodities in all their stages Community (SADC) regional air logistics differs between supply of production along a supply chain” integration. It is estimated that, within chains, but also varies at points (Hesse & Rodrigue, 2004: 173). the SADC region, approximately 62% in logistics processes related to Inherent in this spatially constructed of exports come from South Africa production, distribution, consumption, notion of logistics is the idea (Hartzenberg, 2011: 11) and these or re-use of goods, dependent of pursuing optimal integration are distributed on predominantly on how critical time is. Modal between modalities as one layer, road-based networks. Infrastructure competition between air, road, rail and the integration between is identified as a constraint to trade and sea comes into play where high- places of production, distribution value goods are dependent on timing, in Africa, with extensive distances and consumption as another. but not urgent. There is substantial and transportation costs constraining The framework allows for a relational planning literature on airport-led landside distribution networks understanding of how infrastructure, development that explains the socio- (Hartzenberg, 2011: 3-4; Meichsner designed to interact with the flow economic dynamics surrounding et al., 2018: 182; New Partnership of goods across networks, holds airports and the production of for Africa’s Development (NEPAD), possibilities, and how these flows urban development in support 2016: xii). These constraints reduce can integrate with broader land-use aviation- and non-aviation-related productivity gains, increase inventory processes. Air transportation forms land uses (Freestone & Baker, 2011; stocks, and limit the development part of the networks and nodes in Mokhele, 2017; Charles et al., 2007; of new supply chains in Africa. the physical distribution and the Stevens & Baker, 2013; Stevens, materials management function Imperatives for intra-African trade Baker & Freestone, 2010) and on and would need to integrate with are well documented. However, the cargo side-related air logistics other modes of transportation and the role of infrastructure-led (O’Connor, 2010; Coetzee & production, storage and distribution development and specifically Swanepoel, 2017; Boloukian & use in order to fulfil this logistic airport-led development, in achieving Siegmann, 2016; O’Connor, 2013). function. The complexities lie in inclusive economic growth with The sequencing of broader property achieving connectivity within the poverty reduction outcomes, is development investment decisions in air network as well as integration unclear. Planning critiques of airport- the case study and the importance with land-based networks, where led development tend to focus on of the port relative to the airport in transportation networks underlie the sustainability consequences of attracting logistics activity are part territorial organisation of economic large-scale infrastructure. Yet hardly of a broader study not covered activities in space (Rodrigue, any attention is paid to questioning in this article. Conceptually, the Comtois & Slack, 2013: 22). In other the underlying development path article focuses on understanding words, interrogating air cargo within how air cargo relates to production based on supply-side infrastructure this definition of logistics focuses and distribution activity. investment to support trade and the research on both the distribution related economic growth. Air cargo In this study, logistics refers to “the functions from production to moving through airports and the wide set of activities dedicated to consumption (including linkages with relationship with other modalities the transformation and circulation of other modalities) interacting with air and land uses provide a useful entry goods, such as the material supply cargo and, secondly, the linkages point to probe the air-cargo logistics of production, the core distribution with production land uses interacting dynamics through purpose-built air and transport function, wholesale with air cargo across supply chains.
38 Robynne Hansmann • Specialised airport infrastructure to support connectivity: The case of Dube Tradeport, eThekwini Municipality, South Africa
The extent to which networks are based on assumed growth positive effects on service-sector embedded in local employment, land relationships (Banister & Berechman, employment, but no measurable use and supply chains is a factor 2000: 12). The debates on whether effect on manufacturing or most of in determining local equity gains. transport infrastructure investments the non-tradable sectors, regardless engender economic development of airport size in the USA. The Air transport is arguably not only reflect assumptions on economic direct, indirect and multiplier links a functional enabler, but also potential growth paths. The between airports and economic an outcome of logistics related neoclassic growth theories that development depend on the split to changes in global production emphasise supply-side factors such between passenger- and cargo- processes. Logistics is critiqued in as capital (investments and savings) focused operations as well as on “mobities” literature for its role in and technology to promote economic connectivity (Green, 2007; Kasarda perpetuating late capitalism and, growth have been favoured by & Green, 2005; Brueckner, 2003). by extension, related injustices and endogenous growth theories that pick It is not surprising that studies exclusions (Lin, 2018: 14). Birtchnell, up on the importance of technology indicate that national growth Savitzky and Urry (2015: 6) and infrastructure in the growth generates airport passenger raise concerns relating to global process. Button & Taylor (2000: 214) demand (Allroggen & Malina, 2014, material circulation with critiques note the prevalence of endogenous Küçükönal & Sedefoğlu, 2017), concerning development paths theories in airport-related research, and in the context of significant engaged with globalisation. with arguments for infrastructure growth in South East Asia, this investment to foster economic generates both passenger and freight 3. LITERATURE REVIEW growth. These arguments are activity (Hakim & Merkert, 2016). again evident in the African policy On the whole, findings linking Airport-led development attracts review, linking productivity growth to economic growth and the demand both international and local attention infrastructure provision as a public- for freight are ambiguous. through the convergence of practice- sector activity that stimulates regional based and academic interest in the development. However, endogenous Research on Greenfields airports posited economic growth potential models are critiqued for insufficient in Africa is restricted to the role of of airports. Proponents of positive attention paid to demands side public-private partnerships (PPP) economic development impacts issues such as exports and balance in infrastructure development, argue that airports act as catalysts of payment constraints impacting on citing only three Greenfields for urban growth in the era of employment and productivity (Pike, airports in Africa since 2007 globalisation (Addie, 2014: 87). Pose & Tomaney, 2006: 107). The (Tomová, 2009: 13). Funding By extension, these arguments for oversight of the historical socio- of Greenfields airports, even in airport infrastructure expansion rely economic and institutional contexts the context of substantial airport on the growth potential of the airport shaping the economic growth privatisation over the past thirty regions, where branding regions process has subsequently received years (Cruz & Marques, 2011), such as an Aerotropolis (Kasarda more attention in regional planning. is a challenge. Capital-intensive & Lindsay, 2012; Kasarda, Appold airport investments are particularly & Peoples Jr, 2014), and related The review found that econometric risky, given the scale of investment spatial descriptions of airport-led studies are a common empirical required, the sensitivity to economic development is evident (Freestone method for relating air-transport climate, and the competition for & Baker, 2011). However, amidst the investment to national economic routes. Not only is cost recovery growth claims, airport regions are not growth (Hakim & Merkert, 2016; difficult (Button, Costa & Cruz, without sustainability critiques related Allroggen & Malina, 2014; Küçükönal 2007:213), and cost overruns typical & Sedefoğlu, 2017; Baker, Merkert & to fuels, noise (Charles et al., 2007; (Flyvbjerg, Holm & Buhl, 2002: 4), Kamruzzaman, 2015; Abate, 2016; Kivits, Charles & Ryan, 2010), but in PPPs the state assumes Chang & Chang, 2009; Button & cost overruns (Flyvbjerg, 2007; substantial commercial risk (Cruz Yuan, 2013). However, the findings Robbins, 2015), contested political & Marques, 2011: 394). The suggested conflicting results with decisions (Todes, 2014), terrorism concessions for private spending respect to causality directions. targets (Graham, 2006), and related are typically applied over thirty-year Brueckner (2003: 1), corroborated to global pandemics (Hwang, periods (Cruz & Marques, 2011: 394). by Green (2007: 111), both argue Mahoney, James, Lin, Berro, Keybl, that airports may be a function, as The assertion that transportation Goedecke, Mathieu & Wilson, 2012). well as a cause, of economic growth. infrastructure relates to economic The literature on whether airport However, in general, passenger growth is a widely held view justifying activity is a function or cause of activity as opposed to cargo activity substantial state investment in economic activity echoes deeper is a better predictor of economic infrastructure expansion plans. debates within transportation growth. In support of Brueckner However, given the association literature, questioning the merits (2003: 1), Sheard (2014: 146) also between growth and broader of state infrastructure investments found that air infrastructure yields economic performance, the context
39 SSB/TRP/MDM 2019 (74) of the airport-related investment the intra-regional African share of to enter into agreements to open up matters. This review suggests airfreight is 12.9% of African trade, the competition and, by implication, a more nuanced and context- with some 60% trade with Europe. place subsequent pressure on dependent approach relating airport However, this intraregional share costs. Njoya (2016: 1) argues for the development to connectivity, which has grown by more than 35% over creation of a single African aviation may offer useful insights into the the past two years, reflecting a market through the implementation of regional dynamics of freight and significant change in patterns of the Yamoussoukro Decision, aimed urban development. Globally, African trade (Boeing, 2017: 36). at airline cooperation and integration air-cargo flows are more strongly through liberalisation. However, Assumptions that trade causes localised than air-passenger flows, a generic liberalisation strategy growth are implicit in the World reflecting traditional concentrations in pursuit of trade and growth is Bank’s policy agendas to promote of global production output arguably questionable. Regionally open trade. In the context of (Bowden, 2014). The distinction appropriate and contextually derived sub-Saharan intraregional trade, between the differential logics development paths may hold the Button et al. (2015: 88) claim that behind the geography of passenger possibility for local and regional the World Bank, rather than fund and air cargo flows is important development (Pike, Rodríguez- equipment and air infrastructure, to understand the implied air Pose & Tomaney, 2007: 1255). have reoriented their trade creation connectivity. Airports can arguably In other words, variations in local policy towards regulatory support leverage agglomeration gains in and regional dynamics prompt functions. According to the World cities and improve accessibility differential responses to increased Bank investigations, the African to markets. However, established air connectivity and how connectivity markets are highly fragmented economies are shown to induce is tied into place-based production. and, while some countries have greater passenger growth, with removed import duties within Trade liberalisation is suggestive of a related gains. In the case of freight regional blocks, obstacles such as wider neoliberal agenda to enhance activity, the airport infrastructure non-tariff and regulatory barriers economic competitiveness. It is is not a sufficient precondition limit the movement of goods across also arguably one of the neoliberal for growth; the local and regional borders and raise the transactional policy packages whereby free- context is key in the production costs (World Bank, 2012: xvii). The market principles are privileged and distribution of goods in specific implied agenda is to promote regional over state protectionism to ensure supply chains related to airports. trade and to strengthen the internal adherence to laissez-faire multilateral integration within Africa. The impact free trade. The main concern is 4. POLICY REVIEW is that Africa is more integrated that neoliberal policies tend to with the rest of the world than itself, restrict public intervention in the Practice-based literature recognises specifically through air connectivity. market, potentially constraining the that, although Africa holds a relatively planning instruments. As a public marginal share in aviation services, The discourse on liberalisation interest activity based on normative the potential for growth is significant. and free trade as mechanisms to principles of inclusive growth, According to the International Air open African markets to export and planning can be at odds with regional Transport Association (IATA), air investments remains contested. and national economic growth freight grew more than twice as fast Promotion of free trade is evident in juxtaposed local environmental as global trade volumes during 2017, the policy agendas of international intrusion (Freestone, 2011: 129). with the most significant margins lending agencies (IMF and the World emerging post-global financial Bank) and reflected in the dominant The thread of infrastructure-led crisis of 2010 (International Air research agenda on air services development to strengthen intra- Transport Association, 2018b: 12). in Africa. Research on airport-led African trade and integration Strong growth internationally was development in Africa, particularly is consistently found in policy attributed in part to the global at the national level, is based, to a documents. Africa’s Agenda 2063 inventory restocking cycle, as well large extent, on econometric models anticipates the development as to the demand for manufactured forecasting future demand. It argues of a “world-class integrative exports (IATA, 2018a: 8). that greater liberalisation in air infrastructure” (AUC, 2015: 4-5). However, notable growth in Africa, trade promotes growth (Njoh, 2008; This focus echoes Goal 9 of the with related changing air-trade Button et al., 2015; Njoya, 2016; Sustainable Development Goals patterns, is attributed to trade and Adler, Njoya & Volta, 2018; (SDG) adopted by the United investment opportunities from Ssamula, 2012; Ssamula & Venter, Nations and calls for building increased participation in global 2013; Abate, 2016). Njoya (2016: 1) “resilient infrastructure, promote markets, population growth and assessed some of the impediments sustainable industrialization and increased foreign investment from to liberalisation of African air services foster innovation” (UN, 2018: online). Asia (International Air Transport and found that Southern African The African Union Commission’s Association, 2018a: 4). Currently, countries are particularly reluctant (AUC) vision and strategy also
40 Robynne Hansmann • Specialised airport infrastructure to support connectivity: The case of Dube Tradeport, eThekwini Municipality, South Africa
include infrastructure provision in 2015 Consolidated Treaty on infrastructure features in the National support of trade and inclusive growth matters related to infrastructure Vision for “supporting the movement (AUC, 2015: 5; 2013: 3). As the and trade (SADC, 2015: 2). of goods from points of production to development agency for the AUC, Within South Africa, there is again a where they are consumed, facilitating the New Partnership for Africa’s strong policy alignment from national, regional and international trade” Development (NEPAD) focuses on provincial to local, supporting an (South Africa. National Planning regional integration, infrastructure, infrastructure-led growth path. Commission, 2012: 166). The NDP and trade. The NEPAD programmes The National Development Plan spatially targets the development to ‘Move Africa’ and the ‘Programme (NDP) argues the case for greater of the Durban-Gauteng freight for Infrastructural Development in integration in the global economy to corridor in terms of the role of moving Africa’ (PIDA) implement the AUC’s the country’s high-value freight vision to promote development and engage with new opportunities based (South Africa. National Planning poverty reduction through improved on a leap in trade that promotes Commission, 2012: 166). The access to integrated regional and sustainable and inclusive growth by continental infrastructure networks 2030 (South Africa. National Planning National Medium Term Strategic and services. The argument for Commission, 2012: 49). Transport Framework 2014-2019 in support of regional integration by the African Development Bank Group funding SPATIAL DEVELOPMENT FRAMEWORK 2018-2019 .!
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Municipality a b i R e M d r anzim M Legend to o t R Riv i i er ve estimated that freight costs, as a r Investment Nodes Landuse o Airport Dams M37 Existing Agriculture Amanzimtoti Seaport percentage of import value, are í Existing Airport/Tradeport L it t !r Beach le S# aM !r Nyoni Rock Beach anz Existing Business i mtot i R n¡ Tourism 13% for Africa, compared to 8.8% Existing Cemetery Ngilanyoni jk Sports Precinct Ward 105 Lovu River Existing Commercial 1$ S! S# Urban Investment Node for other developing countries, Existing Industry Ilovo S# Rural Investment Node Existing Landfill S! Investment Opportunity Node Existing Mixed Use M m and 5.2% for industrial countries si ba z i Ri ve r Existing Public Open Space k Roads uM homaz i R iver M 49 # !r Umgababa Beach Existing Railway Reserve Umnini S National Route (NEPAD, 2016: xii). The importance River aba Existing Recreation ab Umgababa Provincial Route
g m Ugu U Metropolitan Route Existing Residential M14 Nga ne e r of transport infrastructure, power and Riv Proposed Roads Existing Rural
v Railway Lines Existing Social and Civic i e M51 R r 3 Dududu a M5 a w ICT are identified as contributors to (! M ah lo n g IRPTN Open Space / Conservation Craigieburn Rivers Proposed Agriculture Umkomaas S# Ethekwini Municipal Boundary 2016 Proposed Business economic development and poverty !r Umkomaas Beach Urban Developement Line Proposed Cemetery reduction in Africa. Within this Aircraft Noise Zone Proposed Industry Economic Investment Areas Proposed Landfill Urban Core Proposed Mixed Use context, aviation receives particular Densification Corridors Proposed Railway Umdoni Future Densification Areas Proposed Residential ver M i Ri Local pambanyon attention. NEPAD identified the Municipality Scottburgh Coastal Erosion Line Proposed Tourism / Recreation Coastal Corridor Umzinto Proposed Road Durban Harbour creation of a single African Aviation (! DMOSS
Prepared By: Scale: 1:90 000 Market as a flagship project, STRATEGIC SPATIAL PLANNING BRANCH DEVELOPMENT PLANNING DEPARTMENT 0 2 500 5 000 10 000 15 000 ENQUIRIES: (031) 311 7450 NOTE: Updated Illovo LAP Date: May 2011 Meters including renewed commitments to Mpumalanga LAP Revised Feb 2013 Back of Port LAP Revised Feb 2014 Pinetown South LAP Revised March 2015 Isipingo LAP Limits of Liability and Warrent Disclaimer Ward 105 Revised March 2016 DMOSS 2018 Revised May 2017 the liberalisation of air trade in Africa Revised May 2018 This data is for information purposes only. Date Prepared: May 2018 No liability shall devolve upon the local Reference No.: SDF 2018/19 authority or it's officials through the use thereof. (NEPAD, 2017). Commitment to Prepared By: Planning Information Office regional integration and sustained growth through the SADC member Figure 2: eThekwini Municipal Spatial Development Framework states is demonstrated in SADC Source: South Africa. eThekwini Municipality, 2018: 719
41 SSB/TRP/MDM 2019 (74) the NDP reiterates the development western N1 corridor connecting is estimated at 1.08% between of efficient competitive and the Durban container port with 2001 and 2011(STATSSA, 2011). responsive economic infrastructure, Johannesburg. The established The adjacent municipality of supported by Strategic Integrated road-based freight corridor is Ndwedwe (within the Ilembe District Projects (SIPS) (South Africa. strongly tied to Africa’s busiest port Municipality) has a population of The Presidency, 2017: 23-24). and the nature of sea freight varies 140 820 people, with unemployment The Durban-Gauteng corridor or substantially in volume and value to at 48.7% and a -0.2% growth rate SIP2 corridor aligns with the NDP air freight. Arguably, access to both between 2001 and 2011 (STATSSA, to ensure that infrastructure is sea and air infrastructure provides 2011). North of DTP, between the adequately planned and coordinated flexibility in how goods move. eThekwini border and the south of to promote the efficient movement DTP falls within the KZN province, the Tugela River, is KwaDukuza of goods (South Africa. Presidential on the eastern seaboard of South Municipality (within the Ilembe District Infrastructure Coordinating Africa, and is home to some 10.3 Municipality), with a population of Commission, 2012). At a provincial million people (STATSSA, 2011). 231 187, unemployment at 25% level, DTP and the emerging The study area is located within and growth at 2.3% between 2001 ‘Aerotropolis’ play a central role in the metropolitan area of eThekwini and 2011 (STATSSA, 2011). The KwaZulu-Natal’s (KZN) Provincial Municipality, where some 3.44 growth dynamics of KwaDukuza Growth and Development Plan, million people live, 30.2% are and eThekwini on the northern 2011-2030 (South Africa. Province of unemployed, and the growth rate corridor are arguably interrelated. Kwa-Zulu-Natal, 2011: 118). Locally, DTP features in the Integrated Development Plan (IDP), despite earlier political contestations with the municipality (Todes, 2014: 264), and the subsequent inclusion in the IDP. Although the strong policy alignment is evident, the coordination, sequencing and funding of infrastructure locally is a challenge. Key impacts emanating from freight movements in the Spatial Development Framework include the sub-optimal split of moving goods by road instead of rail from ports; associated GHG emissions of freight travel and challenges of growing exports within an economic slowdown and downgraded investment climate (South Africa. eThekwini Municipality, 2018: 130).
5. DUBE TRADEPORT CASE STUDY The DTP development site is the largest infrastructural project in the KZN province and forms part of the NDP for the country. The site is strategically located in relation to infrastructure supporting trade and is some 35 km north of the container port of Durban and some 150 km south of the bulk port of Richard’s Bay on the main provincial north-south N2 corridor. As part of the strategic infrastructure project (SIP) for the Durban-Free State Gauteng Logistics and Industrial Figure 3: Location of Dube TradePort within KwaZulu-Natal Corridor, DTP is 40 km north of the Source: DUT Department of Town and Regional Planning, GIS Unit
42 Robynne Hansmann • Specialised airport infrastructure to support connectivity: The case of Dube Tradeport, eThekwini Municipality, South Africa
In the study on suburbanisation investor-related infrastructure. The and shippers offices above. An processes, Todes (2014: 245) specific SEZ incentives include elevated conveyor transfer system found that these areas displayed 15% corporate tax for qualifying links the TradeHouse with the differential forms of growth related entities, 10% per annum building TradeZone to the adjacent Cargo to land ownership. The dynamics allowance, employment incentives Terminal. The AgriZone precinct of a dominant landowner, Tongaat for low-income workers, import comprises greenhouses, packing and Hulett, on the northern corridor duty rebates for export-related sorting facilities, and related uses. surrounding the airport, was found production, value-added tax Dube City Precinct is for business to shape development in contrast exemption under specific conditions and hospitality purposes. The site to fragmented patterns displayed for South African procedures, was designed as a 60-year master in KwaDukuza. Imperatives for supplies and tax incentives plan underpinned with precinct plans DTP to create employment and (DTC, 2017b:2). In fact, the DTP approved by the municipality. Prior contribute towards regional growth, mandate is strongly aligned with to the submission of site plans with particularly as a state entity tasked the government’s industrialisation the Municipality, an internal review with promoting investment in KZN, policy to support trade by deriving system checks for consistency and are high (DTP, 2018: 12). According agglomeration benefits of airport the drawdown of development rights. to DTP, public and private capital infrastructure as well as the Prior to the construction, relocation expenditure into Dube TradeZone spatially targeted investment and opening of the KSIA within DTP 1 and Dube AgriZone 1 created through the SEZ instrument. 46 367 employment opportunities in site on 1 May 2010, the previous KZN to date, including construction The DTP site includes KSIA, a Durban Airport operated as a and operations, and contributed dedicated cargo terminal, with a regional airport, with limited runway approximately R9.5 billion into the range of supporting precincts focused length, some 20 km south of the national GDP (DTC, 2017c:10). on warehousing, offices, retail, hotels, Durban Port. The airport relocation According to Robbins (2015: 3), and agriculture. The site precinct was motivated first, by the stimulus the estimated construction costs shown in Figure 4 is divided into a to the regional economy through covered by the state and related number of precincts, with complex direct international long-haul flights; entities were in the order of ownership arrangements related secondly, the growth in high-value R8 billion rand (USD1 billion in to the institutional arrangements manufactured and perishable goods, 2010), with employment, cargo negotiated between DTPC and ACSA and, thirdly, investment opportunities volumes and passenger numbers in the lead-up to the site opening in created through connectivity (Institute below the estimates on opening. The 2010, and more recently including of Natural Resources, 2006: 24). Tongaat Hulett in TradeZone 3. limitations of reaching short-term The project became operational in The Cargo Terminal Precinct and conclusions on the case of DTP, the wake of the global economic TradeZone Precinct are owned by after some three years in operation, crisis and despite the impact of the DTP and leased to tenants, while are recognized, given that airports World Cup opening on the passenger the Airport Precinct is owned by plan for 10- and 30-year horizons. side, the cargo side opened with ACSA. ACSA owns and operates limited air connectivity. Current DTPC was established to implement OR Tambo International Airport passenger volumes of 5.6 million the development of the international (ORTIA), Cape Town International place KSIA as the third busiest airport airport and logistics platform to the Airport (CTIA), KSIA and the balance in South Africa (DTC, 2018: 17). north of eThekwini Municipality, of regional airports in the country. In their study on African networks, Durban. The specific mandate DTPC is a provincial state-owned as a proxy for globalisation, Otiso, for DTPC has shifted over the entity (SoE), and owns and operates development phases of the project, Derudder, Bassens, Devriendt & Dube CargoTerminal, TradeZone, initially conceived as a TriPort, Witlox (2011: 619) rank Durban fourth AgriZone and Dube City. multimodal logistics platform to a in Africa and note that, along with ‘global manufacturing and air logistics The 3 800-hectare site is centred on Johannesburg, Cairo, Cape Town, platform’ responsible for development the Airport Precinct including KSIA Nairobi, Casablanca, and Durban, is of the DTP site, including the passenger terminal with a 3.7 km also relatively well integrated into the designated Special Economic Zone runway. The Dube CargoTerminal global urban airline network. Initially, (SEZ) to promote foreign and local located at mid-runway is a cargo- the air-cargo volumes between May investment (DTC, 2017a: 4; South handling facility, including cold 2010 and March 2012 were averaged Africa. eThekwini Municipality, 2015: storage, with direct, secure airside at 337 tons for imports and 105 tons 143). The designation of DTPC in access. The TradeZone Precinct is for exports per month (DTC, 2012a: 2016 as SEZ operator broadened designed for airport-related industrial 37). However, after some eight years the vision to enhance manufacturing activities with warehousing and of operation, cargo volumes have and export capacity, and to attract logistics uses. Integral to the design increased by 138% to a total of 19 foreign direct investment through is the TradeHouse, comprising of 498 tons in 2017 (DTC, 2018: 14). government incentives and warehousing space and forwarders DTP’s share of air-handling has
43 SSB/TRP/MDM 2019 (74)
100 000 tonnes of cargo annually, although current volumes are a fifth of the ultimate capacity (see Table 1). The ability to move high-value to weight and time-critical goods, including component parts and perishable goods, was part of the initial strategy for developing an international air-cargo strategy for the KZN province. Although this requires dedicated and specialist air-cargo facilities, warehousing and an integrated network of intermodal logistics services, the bulk of air cargo is not transported in dedicated air freighters, as initially planned. In other words, in the context of DTP, domestic airfreight capacity is more strongly tied to production capacity, whereas international Figure 4: Location of Dube TradePort site, including the King airfreight follows connectivity Shaka International Airport and Dube CargoTerminal through passenger hubs. Source: DUT Department of Town and Regional Planning, GIS Unit Goods, either able to absorb the higher cost of transport into shifted, despite low levels of domestic a further 694 third-stop international pricing or due to time demands, economic growth. Changes in air destinations (DUT, 2017). DTP are handled by the CargoTerminal connectivity at KSIA have impacted handles international cargo only and include electrical components on the supply side of air-cargo and domestic operations are and electronics, closely followed handling volumes, with four additional carried out by tenants in the Dube by engines, machines, equipment, routes flying from 2015 (Qatar CargoTerminal. The international and, more recently, clothing. Airways, Turkish Airlines, Ethiopian market is exclusively served through Opportunities to establish linkages Airlines and Proflight Zambia), the existing wide-bodied aircraft, to well-established manufacturing although only three are related to the fixing the destination of exports and automotive clusters in Durban Cargo Terminal, and another three in through the related passenger hubs, are important in the context of 2016 (including Air Seychelles and Air rather than scheduled international local economic stagnation and Namibia). Although Ethiopian Airlines, freighter services. Charter freighters high unemployment figures. Air Seychelles and SA Express are arranged on an ad hoc basis, DTP have invested in the Dube withdrew in 2017, this was offset by specifically where outsized cargo Automotive Supply Park, located the addition of Air Mauritius and more cannot be accommodated in the some 50 minutes to the south of recently British Airways services in belly. Domestically, the air-cargo the site. Mahindra have opted to 2018. Air-cargo growth has exceeded market is served by scheduled locate a production plant in the the GDP growth for KZN, due partly carriers, on a standard body B 737 TradeZone for opening in 2018. to the opportunities created through (less than 45 tons). This aircraft has The development of the SEZ at DTP increased connectivity with Durban the capacity for approximately 7 tons, has reinforced spatially targeted and partly to modal competition for but on average carries about 4.5 government industrialisation transporting specific goods (Bantwini, tons a year, and the Cargo Terminal strategies, with the intention of 27 August 2018: interview). handles approximately 11% of the developing specific clusters in domestic cargo tonnage (Erskine & KSIA offers a range of scheduled the TradeZone adjacent to the Bantwini, 2017: interview). In 2017, and unscheduled flights and low-cost CargoTerminal. The conversion of domestic cargo was restricted by operations to short- and medium-haul the previous Industrial Development both the domestic economic climate destinations in the domestic market Zone (IDZ) in 2014 to the SEZ and reduced cargo capacity on and growing regional market, as can derive benefits for industrial domestic routes (DTC, 2018: 40). well as a small share of long-haul development related to both proximity international flights. There are 19 The Cargo terminal was purpose-built to transport infrastructure and direct destinations from Durban, to support airfreight industry growth fiscal incentives. The availability of of which 11 are international in KZN, with sufficient capacity to serviced, zoned industrial land on the destinations. These connect to 118 support long-term development. The site saw the 26-hectare first phase second international destinations and cargo handling has a capacity of developed, the balance sold out, and
44 Robynne Hansmann • Specialised airport infrastructure to support connectivity: The case of Dube Tradeport, eThekwini Municipality, South Africa
Figure 5: Durban direct destinations Source: DUT Department of Town and Regional Planning, GIS Unit
the 43-hectare second phase due for of developing the second phase targeted investment strategies, release following planning approval of manufacturing linked to the ‘air most notably in the automotive (DTC, 2018). Enterprises requiring logistics platform’. The SEZ at Dube and pharmaceutical sectors. air connectivity are targeted in the TradeZone specifically targets However, even on completion of the SEZ. However, the first phase shows investment towards electronics, TradeZone, the viability of the Cargo uneven air dependence. Further pharmaceuticals and aerospace Terminal is not based on internal development of the SEZ is intended manufacturing, assembling and demand. Some 20 freight-forwarding, for manufacturing, assembling, distribution firms. However, the real logistics, storage and distribution air-related cargo distribution, high- measure is not simply employment companies are located in the tech aerospace services, electronics, creation through on-site investment. facility to support air-related cargo and pharmaceuticals production, Ensuring growth in air-freight distribution. Dube CargoTerminal also automotive, clothing, textiles, cold volumes development through provides services directly to users of storage, warehousing, distribution, broader, regional supply chains is the facilities and it is estimated that and logistics (DTC, 2018:6). Within the measure in the longer term. some 380 role players in the logistics the TradeZone, including the SEZ, Although the development of the supply chain, including shippers, the total investment value, by TradeZone derives some internal agents, air-cargo charter operators either Black-owned or -empowered demand for airfreight, the pilot phase and logistics service providers, companies, is approximately failed to secure strong airfreight interact with the Cargo Terminal R1.629 billion (DTC, 2018: 41). linkages in all the sub-tenants. In (Bantwini, 27 August 2018: interview). On the investment side at the subsequent development phases A minority of logistics operators at TradeZone, DTP have sold their of TradeZone, requirements for air the airport and the bulk of logistics first phase and are in the process connectivity are implemented through companies operating in Durban have
45 SSB/TRP/MDM 2019 (74)
Table 1: Performance of Dube Cargo Terminal 2010-2018 difficult for air-cargo operators to 2010i 2011ii 2012iii 2013iv 2014v 2015vi 2016vii 2017viii operate dedicated air-cargo flights to points within Africa. The KZN Revenue from cargo handling R9.4 R10.2 R14,3 (imports and exports) million million million province exports significant amounts of freight to the SADC region, Tonnage through Dube Cargo 5 023 5 060 6 123 7 681 7 150 8 062 10 075 11 351 specifically Kenya and Angola. Terminal (international) However, the relative imports from Tonnage through Dube Cargo 7 780 the SADC region are low. The 3 396 7 335 6 700 6 427 8 147 Terminal (domestic) imbalance of air-cargo movements creates challenges for backhaul Value of goods through Dube R1.74 R4.3 R4.8 R4.9 R4.5 Cargo Terminal (international) billion billion billion billion billion opportunities and unsustainable point-to-point dedicated air-cargo TOTAL TONNAGE 9 519 15 016 13 850 14 489 17 855 19 498 operations. In fact, air cargo linked Notes: to passenger flows makes sense, until the volumes demand dedicated DTC 2011.i cargo operations within Africa.
DTC 2012b.ii In the absence of the local volumes supporting freighters, this secondary iii DTC 2013. airport is tied to building air-cargo volumes through passenger DTC 2014.iv connectivity and working more closely DTC 2015.v with hubs. Dube TradePort and its African route-development strategy DTC 2016.vi should continue to link passenger air services with trade strategies in order vii DTC 2017b. to develop air-cargo volumes on the DTC 2018.viii backhaul. Structurally, passenger and cargo connectivity cannot be Source: Data from Dube TradePort Corporation Annual Reports 2010-2017 viably delinked in the short term. not relocated to the airport, due to to build up volumes annually by 6.2 Shift in volumes due to the dominant role of the port and 12.7%, as reflecting the trend over connectivity landside distribution on the N3 west the past seven years (DTC, 2018: (Wilkinson, 8 August 2018: interview). 12). It is specifically air-cargo exports Although it was previously noted that that need to continue growing in air-cargo handling is concentrated order to promote local investment in at the ORTIA hub, the domestics 6. FINDINGS the process. According to the DTP and international volumes handled officials, exports are estimated at by DTP are increasing. The total air 6.1 Trade imbalances less than a quarter of international cargo handled between ORTIA, CTIA Air-cargo exports and, in particular, tonnage, but are increasing in and KSIA is projected at 504 022 imports through Dube CargoTerminal proportion and volume annually tons in 2018 and recorded as 463 have steadily grown since opening (Bantwini, 27 August 2018: interview). 482 tons in 2017, with a 9% growth in 2010, despite the relatively low (ACSA, 2018). ORTIA handled some Hardly any air cargo moves to and volumes and off a low base. The 394 430 tons relative to 19 498 tons from the Dube TradePort Cargo growth reflects trade relations with through Durban in 2017, with Durban Terminal into Africa. This is mostly specific countries. The majority of the accounting for a 4% share of total due to the imbalance of cargo shipments originate from, and go to air cargo by weight (ACSA, 2018). movements and reflects the overall Germany and China, closely followed However, in terms of domestic air structure of trade. Future challenges by the USA. Markets between cargo, it is estimated that the share for the Cargo Terminal will be to India and China are bi-directionally is closer to 15% (Bantwini, 27 August increase export air-cargo volumes balanced with goods, which is not 2018: interview). Since opening, the in line with the SEZ strategy of the case for total air cargo with Africa DTP share of air-cargo handling has developing air logistics and export- (Erskine & Bantwini, 2017: interview). now shifted despite low levels of oriented manufacturing in order Bi-directionally balanced air-cargo domestic economic growth. Air-cargo to promote local investment. routes are important for the Cargo growth has exceeded the GDP Terminal, as it means that both import KZN exports significant amounts growth for KZN and this is attributed and export capacities are being of freight to the SADC region, partly to the opportunities created utilised in a specialised infrastructure. but imports hardly anything from through increased connectivity In other words, it does not suffice the SADC region, making it very with Durban and partly to modal
46 Robynne Hansmann • Specialised airport infrastructure to support connectivity: The case of Dube Tradeport, eThekwini Municipality, South Africa
competition for specific goods to frequency and flexibility in routings. development of sub-Saharan supply move within a specified time. Given that the Dube TradePort Cargo chains related to connectivity, with Terminal is playing a greater role in sufficient import and export air-cargo 6.3 Shift in modality terms of imports, this raises issues volumes to support scheduled for managing landside logistics The strong hub-and-spoke freighter services. However, the within the eThekwini Municipality. arrangement for South African limited airfreight volumes from Airlines creates some challenges for Africa for exports moving through a secondary city attempting to move 7. CONCLUSION DTP place the viability of dedicated outside this dynamic. International freighters in the balance. Despite the Dube TradePort development passengers from Durban have has secured primacy in provincial sub-Saharan reach of the air-cargo noted a significant growth in direct investment spending and regional infrastructure, the current trade international flights specifically with economic strategies. However, imbalance works against building up Dubai, Doha, and Istanbul routings despite localised impacts, the trade volumes on the return flight. and, more recently, with British project has managed to increase Strategies to align passenger and Airways. The development of point- connectivity to international markets, air-cargo connectivity through belly to-point international connectivity build up local volumes (albeit in hold cargo are short-term strategies on wide-body passenger aircraft is specific supply chains and relatively to offset risks of unbalanced important for air cargo to avoid time small), as well as attract local and cost delays of routing through backhaul. Longer term strategies and foreign investment, all within a hub, and also a main driver for relate to increased trade volumes. in a relatively short time span. increased volumes. However, these decisions are driven from a The literature and policy review ACKNOWLEDGEMENTS passenger viability perspective as support the case for improved opposed to cargo-routing logic. logistics and infrastructural integration The research was made possible to support trade, particularly where through the National Research On the demand side, shifts in the air connectivity embedded in local Grant 99324. Joe Kitching of Durban market share of goods handled by industrialisation builds regional trade University of Technology assisted DTP are evident since opening. A volumes. Weak economic integration with the production of GIS maps. portion of cargo previously moving within Africa represents lost by road has moved to air cargo, opportunities for developing larger before landside distribution (Erskine trading markets and economies of REFERENCES & Bantwini, 2017: interview). The scale associated with regional trading ABATE, M. 2016. Economic effects relative share of air cargo from KZN- blocks. However, the mechanisms of air transport market liberalization based companies, previously trucked to support this regional trade lie in Africa. Transportation Research to ORTIA, is reduced, and air cargo beyond the physical infrastructure. Part A: Policy and Practice, 92, destined for KZN and previously Air connectivity, supported by trade pp. 326-337. https://doi.org/10.1016/j. trucked from ORTIA, has shifted in agreements, has seen a shift in the tra.2016.06.014 favour of DTP (Erskine & Bantwini, African share of air cargo. Yet air 2017: interview). 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