Newly launched Nelson Mandela MSC Cruise Terminal a boon for economy

Thursday, November 23, 2023

President Cyril Ramaphosa has praised the newly launched Nelson Mandela MSC Cruise Terminal in Durban as an important step towards restoring the position of the city as a premier cruise tourism destination.

It is also a testament that despite challenges, Transnet has recorded progress.

The President was speaking at the launch of the terminal on Wednesday evening in KwaZulu-Natal.

“The launch of the Nelson Mandela MSC Cruise Terminal is more than a milestone. It’s much bigger than just launching a terminal… it’s about taking a journey into the life of Nelson Mandela in part.

“It is also an important step in positioning the city of Durban as a premier cruise terminal and tourism destination, alongside the finest in the world,” he said.

President Ramaphosa spoke of the terminal’s potential to place Durban firmly at the forefront – alongside Cape Town – as a destination of choice for cruise ships, as well as a boon for the local economy.

“The latest cruise season injected… an estimated R1.2 billion into the economy of the Western Cape alone and we want to see… bigger numbers for here in KwaZulu-Natal. This terminal will play an important part in doing so.

“As more cruise liners visit this city, more tourists come. As part of their homeport itineraries, passengers visit local attractions, shop and spend, and more money is injected into the local economy. As a result, more jobs are created for South Africans and more local businesses supported, especially small businesses.

“According to the Cruise Lines International Association, the vast majority of cruise passengers are inclined to revisit a destination they initially visited during a cruise. So beyond being an investment in brick and mortar, this terminal is also an investment in the future of the South African tourism industry,” he said.

Public-private partnership

The terminal came about as a result of a public-private partnership entered into between Transnet and Mediterranean Cruise Company (MSC) in 2019 with an investment of some R298 million.

This year, a further R30 million has been invested for further expansion of the terminal.

“Despite the significant challenges Transnet has been facing, there has been a great deal of progress and movement, and this infrastructure project is one such example. 

“To step up upgrading and modernisation, the [Transnet] National Ports Authority launched the KZN Logistics Hub Programme, a strategic programme seeking to expand capacity in the ports of Durban and Richards Bay… through the delivery of… 33 flagship projects.

“The infrastructure projects in the pipeline that are being developed under the KZN Logistics Hub programme in the Port of Durban are specifically focused around the five precincts [Island View, Container, Bayhead, Maydon Wharf and the Point and Recreation precinct] and the expansion plans aim to increase container capacity nearly four-fold,” President Ramaphosa said.

The logistics hub alone is expected to see investment of some R157 billion with a view of creating 570 000 jobs.

President Ramaphosa added that on top this, Transnet together with the municipality, the KZN province and Ithala Bank for the development of the Durban Bay Waterfront.

“This will encompass overhauling and redeveloping the marina and its transformation into a world-class economic, tourism, water sports and recreation asset. Our country’s state owned enterprises continue to play a vital role in enhancing the economic and social well-being of all South Africans.

“With the commitment of private sector partners like MSC we will be able to fully realise our aspirations for economic growth and job creation,” President Ramaphosa said. – SAnews.gov.za