Page 8 - KZN Business Sense - Vol4 No1 - eBook
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DURBAN RECORDS BEST EVER AIRFREIGHT VOLUMES



              record-breaking increase   captured in the third quarter   Durban, as well as the increased
              of 13.7 percent in      when compared to the same     frequency of chartered aircraft            Durban’s international  cargo
        A Durban’s international      period last year. “This is the   using King Shaka International
        cargo volumes has been praised   highest ever recorded cargo   Airport.                     volumes in the third quarter increased
        by eThekwini Municipality as   throughput during the months
        the high cargo throughput is   of October and November 2017,   “Investment in a new         by 13.7 percent when compared to the
        expected to impact positively on   which exceeded the 1,700 tonne   specialised outsized cargo
        the local economy.            mark per month for the first   handling facility has significantly   same period last year.
                                      time.”                        contributed to our ability to
          The achievement was                                       handle bulky shipments,” said
        announced on 1 February        DTP said the spike has       Mlibo Bantwini, Dube Cargo
        by Dube TradePort (DTP)       been primarily driven by the   Terminal Executive. Bantwini   enabled supply-chain specialists   in various elements such as the
        management who emphasised     introduction of additional wide-  added that this infrastructure, as   to respond quickly to the needs of   bulk infrastructure growth,
        that this is the highest increase   bodied passenger flights into   well as the systems in place, has   the company’s freight forwarders   town planning approvals, new

                                                                                                  by providing them with a reliable   foreign investor attraction and
                                                                                                  and competitive solution for their   international marketing.
                                                                                                  charters flying into Durban.
                                                                                                                                 “DTP continues to be a key
                                                                                                   Russell Curtis from Invest   catalytic project growth node for
                                                                                                  Durban said this demonstrates   eThekwini hence we are currently
                                                                                                  the strength and diversity in local   ramping up our participation
                                                                                                  business base and underlines the   to further develop the route.
                                                                                                  growing importance of time-   Our catalytic projects office
                                                                                                  sensitive freight in local value   team continue to prioritise and
                                                                                                  chains. He added that the DTP   facilitate the bulk infrastructure
                                                                                                  infrastructure and services in   and planning approvals for
                                                                                                  support of these globalised value   the precinct. As a result of our
                                                                                                  chains continues to underline   commitment, our investment
                                                                                                  Durban’s relevance as a major   dashboard of new investors
                                                                                                  business hub.                 targeting DTP is growing. Also
                                                                                                                                large existing local businesses,
                                                                                                   Curtis said the City is      such as banks, property
                                                                                                  thrilled about this new record   developers and hospitality
                                                                                                  of airfreight volumes and     industry giants are also coming
                                                                                                  proud to have contributed     on board now to better market
                                                                                                  to the success. He said the   the region and attract more
                                                                                                  Municipality across multiple   global tourists, both leisure and
                                                                                                  units has been supporting DTP   business,” added Curtis. 


        CALL CENTRES AND TOURISM CONTINUE TO



        DRIVE DEMAND FOR SPACE IN KZN



              emand for space to      Tongaat Hulett Developments.   economy — tourism — continues
              accommodate Durban’s                                  to show growth and demand for
        Drapidly-expanding business    This will be welcomed by     more facilities.
        sector continues to feature as a   Durban’s 1.6 million labour force
        backdrop to the local economy.   which boasts a literacy rate of   This view is supported by
        This is evident in the pace at which   84.3%: BPO facilities have a higher   research which shows that hotels
        newly-created space or facilities   staff density and will bring more   in uMhlanga alone represent 28%
        in the north coastal development   jobs to the region and thus boost   of the province’s hotel market,
        corridor of Durban are taken up as   the local economy.     with occupancies, rates and
        expansion continues unabated.                               revenue per available room having
                                       Shabalala says the availability   outperformed the national market
          One need look no further than   of affordable space is one of the   for the past three years.
        the pace of development north   reasons that KwaZulu-Natal has
        of Durban, up to and including   become a hotspot for locating   This strong performance is
        King Shaka International Airport   call centres. The province is   linked in part to growing business
        and Dube TradePort, to witness   home to more than 60 BPO   travel, but also the proximity to
        this phenomenon.              centres and accounts for almost   King Shaka International Airport.
                                      50% of South Africa’s financial
          “Business process outsourcing   services call centres.     “Interest from hotel operators is
        (BPO) has been identified as                                evident all over uMhlanga, with
        a compelling market sector in   “This is a major advantage that   a spate of new hotels opening in
        the region and Tongaat Hulett   we have over other centres, and it   the next year or two. The likes
        is committed to facilitating   is one that we are looking to build   of the Radisson Blu Hotel, the
        development to accommodate this   on by establishing BPO Parks that   Marriott uMhlanga and proposed
        demand and open up attractive   could host a number of facilities in   premium-brand hotel for
        and profitable investment     one location. We have only recently   uMhlanga Arch demonstrate this
        opportunities. Fortunately, there   completed our research into the   interest.
        are a number of such opportunities   market demand for the concept
        available in our portfolio right   and are confident that the idea has   “We expect this demand to
        now that can provide specifically   great merit.”           continue into the near future,
        tailored solutions to accommodate   In addition to this comparatively   which is good news all round
        that demand,” says Xoli Shabalala,   new sector, a staple of the region’s   for Durban’s broader business
        Head of Market Solutions at                                 community.”                  Xoli Shabalala, Head of Market Solutions at Tongaat Hulett Developments.




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