Cape Town cruise liner terminal will boost tourism

02-07-2015
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IOL Property
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The R178 million cruise liner development at Cape Town's Duncan Dock is one of several developments by the V&A Waterfront expected to contribute a cumulative R223.7 billion to the economy by 2027.

"We see the terminal as being an extension of the activity of the V&A Waterfront. The terminal building is in close proximity to the Silo District, which is set to become a major hub with the development of the Zeitz Museum of Contemporary Art Africa," said David Green, chief executive officer of the V&A Waterfront.

He said the Waterfront's mandate for the terminal would start in September, and the first phase would see the completion of the passenger terminal in December 2017.

"The intention is that the facility can comfortable handle the full passenger complement of the likes of cruise liners such as the MSC Symphonia or the Opera."

After several delays, Transnet announced this week that the Waterfront would operate, maintain and transfer ownership of the facility back to the ports authority after 20 years.

The project has been years in the planning, and calls for a dedicated terminal that could handle cruise liner vessels and also provide a welcoming experience for passengers intensified as the cruise industry started to burgeon.

Transnet issued a call for bids in the development of E Berth, Duncan Dock, in 2013, but the tender process dragged on until November 2014, when Transnet was due to announce the preferred bidder. Instead Transnet re-advertised the open-bid process because of a technicality. It was said then that it would take about six months to wrap up the bid process. But in May the parastatal stalled again on the grounds that leadership changes meant the preferred bidder would only be announced in June.

Ian Neilson, the city's mayoral committee member for finance, said then that the city could not afford any more delays as the project would provide a "significant boost" to the city's tourism industry.

Garreth Bloor, city mayoral committee member for tourism, events and economic development, said the city was pleased a decision had been made so that the process could gain momentum.

"The lack of a cruise liner facility has been long overdue. A cruise liner terminal will definitely be a feather in our cap. The cruise industry is growing and we need to provide facilities that can cater for the future growth in the industry."

The Waterfront, one of the original bidders from 2013, said then that the cruise liner terminal would boost the Waterfront's contribution to the economy by 51 percent. The Waterfront has contributed close to R200 m to the economy in the past decade.

Bloor said that in 2014, figures released by the Waterfront indicated that local cruise ships say 16 184 passengers and almost 8000 crew arriving in Cape Town.

"The increasing number of passenger ship tourists and more days spent by tourists in our city will lead to greater destination exposure and greater economic impact as passengers are spending more while visiting Cape Town", he said.

Alan Winde, MEC for Economic Opportunities, said the cruise tourism industry generated more than R200m for the local economy annually, with international cruise tourists spending about R1000 a day while docked in Cape Town. A 2011 study, by the City of Cape Town, found that one liner with 2000 passengers and a crew of 600 could spend about R2.2 million a day in the city.

Winde said the development had the potential to extend the V&A Waterfront's footprint into the port, linking the two areas.

"The V&A Waterfront is already a tourism landmark and can serve as the gateway to the rest of the region.

"Cruise liner tourism presents a significant opportunity for economic growth and job creation."

Winde said the Waterfront's investment was the latest in a series of large-scale projects and developments across the city.

"These investments show high confidence in our region as a leading tourism and business destination and are evidence that we are succeeding (in) our mission to make the Western Cape a great place to invest."

Green said the terminal facility would include shops, baggage handling services, immigration desks and customs facilities.

"Given the reality of the seasonality of the cruise industry, we will develop and run the terminal building as a multi-use to bring activity year round."

James Vos, the DA's spokesman on tourism, welcomed Transnet's announcement.

Cape Argus