ACSA expansion and development plans for Cape Town International Airport and surrounding communities

Meeting report

Airports Company South Africa (ACSA)

 Ms Deidre Davids, Senior Manager: Corporate Affairs, Airports Company South Africa (ACSA), welcomed the opportunity to present to the Committee about Cape Town International Airport’s expansion plans.

ACSA is part of a broader network, looks after the nine principal airports in South Africa and has an international footprint which it is proud of as it actively drives sharing of knowledge and skills and being part of a concession agreement with other parts of the world. Sharing in a concession agreement is not only good for ACSA but for the country as well because it shows that South Africa has leaders in the aviation industry that are able to work across the globe. 

Through the airports in South Africa, the country enjoys excellent connectivity through wide-reaching routes across various continents, and ACSA sees airports as socio-economic catalysts for growth in the regions the airports serve. ACSA speaks to how the future of cities and regions depends on their airports similarly to how in the old days, cities were built around their seaports and rail ports. The future is airports.

Cape Town International Airport (CTIA)

Ms Davids highlighted that the CTIA is a strategic asset in the region and hoped the results will showcase that. While the airport city numbers are impressive in terms of the contribution made to the economy of South Africa, it is also about opportunities created by leveraging an airport. This is something that ACSA continues to drive in order to make a meaningful contribution to the local economies within the city that the airport exists.

ACSA is proud that the CTIA is Africa’s most award-winning airport. The CTIA received the World’s Travel award for the best airport in Africa in Mauritius in 2019 for the third time in a row. CTIA was nominated for Sky Travel’s award for best airport in Africa for four years running. ACSA is focusing on the global stage in order to compete with other international airports. CTIA currently ranks as the world’s 22nd best airport. 

Airport by numbers 

Ms Davids was proud of the CTIA’s on-time performance in the region of 85%. On peak days, CTIA can process as many as 40 000 passengers a day, move 20 000 pieces of luggage and the airlines use up to 2.2 million litres of aviation fuel which is significant. 

The airport is a complex environment - everyday there are over a hundred brands that come together to choregraph the airport for passengers to have a seamless experience from beginning to end. ACSA places a big focus on collaboration and cooperation as the seamless experience of passengers is not always met. For example, ACSA has set up a meeting with the leaders of different entities that make up the CTIA value chain. This includes airlines, car hire, retailers, baggage handlers etc. This is to discuss peak season and pending construction plans with the intention of creating a common situational awareness for everyone to understand the role they need to play in the value chain.

There are 10 000 permit holders that are part of the airport experience.

Core Source Markets

ACSA’s core source markets are the United Kingdom (UK), Germany and United States of America (USA). There is an increase in the African market, which is incredible. The traffic split is 76% domestic and 24% international. The domestic aspect is still predominant out of Cape Town.

Passenger growth

ACSA is proud of the Air Access programme in partnership with the Western Cape provincial government. The Air Access programme has had significant success since its inception. There have been 15 new routes and 20 route expansions through this programme. Passengers can now connect directly to cities like Vienna, fly directly from Cape Town to Hong Kong and, as of 16 December 2019, there will be a direct flight from Cape Town to New York on United Airlines. This has been a huge achievement for the Cape Town region.

A big focus for the Air Access team is not only attracting new routes into the city but working on retaining existing routes. This is a partnership and collaboration where results speak for itself. 

Master Plan

Passenger growth triggers the airport’s expansion programme. Airports generally plan well in advance where they undergo a process called master planning in order to get a long-term future view of what the airport precincts should be. ACSA is currently working on a significant build programme for CTIA. The three keys projects are:

• Realignment of runway 

• Domestic Terminal 

• International Terminal

These three projects will have a significant impact and make a positive contribution to the local economy - an investment in the region of R7 billion. 

The presentation displayed a conceptual overview of the master plan which does not have a date as it only signified a long-term future dream of what CTIA could be.

Realignment runway 

ACSA secured the environmental authorisation after three years for the construction of the runway. The tender has been advertised and construction will commence in early 2020. Construction will take 24 months with a six-month commissioning period. The essence of this project is about growth and not only the growth of the airport.

After the construction period, the airport will be able to handle larger aircraft and more landing and departing aircrafts.

New Domestic Arrivals

ACSA highlighted it is excited about this project as it is often criticised about the “long walk to freedom” from the aircraft to the baggage area and then exiting the building. An express route will be constructed, the baggage claim area will be increased, and there will be improvement to the broader arrivals area.

Construction will commence in early 2020. Advertisement for the project tender is eminent. The project is expected to be completed in two and half years. The essence of the project is easy navigation.

ACSA showed the Committee images of the expected new look of the domestic terminal. 

International Terminal Two

This is a big project for ACSA. Terminal two is one of the oldest buildings next to terminal five. A portion will be demolished. The last time ACSA had a major build programme was during the Soccer World Cup and nearly ten years on, ACSA is about to embark on the same process.

After the project is complete, CTIA will have a larger immigration area. 

The enablement works tenders for the project has been released, the new temporary arrivals area will be in parkade one and ACSA hope to commission the development plan in 2024.

Social Commitment 

ACSA maintained a sustainability framework which gave it an awareness of the environment, people and society which are equally as important as the business side of things. ACSA places a big focus on working with the people and improving the lives of the communities around the airport. CTIA is doing significantly well however it is surrounded by the poorest citizens of Cape Town - this is both a challenge and an opportunity for ACSA.

CTIA’S Strategic Developments

ACSA highlighted two development projects namely, Symphony Way and the Swartklip development. 

ACSA visually showcased how the two projects fit into the broader airport precinct which showed three informal settlements namely, Malawi Camp, Freedom Camp and Blikkiesdorp. 

Blikkiesdorp is one of the oldest temporary relocation areas in the city of Cape Town. It began as an interim measure but has existed for nearly 11 years. The area currently exists on future land that CTIA will require. Freedom Farm is adjacent to the airport and exists on airport land. Malawi Camp is situated in the flood path next to the airport.

Symphony Way Development

In February 2015, ACSA concluded a Memorandum of Agreement (MOA) with the City of Cape Town (CoCT) to co-develop the Symphony Way. The proposed development corridor represented a progressive and integrated development model that consisted of housing, industrial/commercial development, public facilities and conservation areas. The development plan places priority on the three informal settlements for formal housing.

The CoCT has appointed a professional team to commence with the planning and bulk services. ACSA has received zoning for 14 hectares. There are various SED projects underway that compliment the project including innovative partnerships between ACSA, the CoCT and False Bay College to teach community members to build houses thus enabling sustainable opportunities.  

ACSA then highlighted the community beneficiation programme:

• Symphony Way development

• Skills programme partnering with North Link College and False Bay College

• Electrification partnerning with Green Cape

• Feeding scheme

Swatklip Development

ACSA referred to this development as a mixed-use development which falls in line with the aerotropolis strategy - an aerotropolis strategy is a space where people can live, work, plan and learn. 

The realignment of the runway will go over the Swatklip area. ACSA showcased the plan with an aerial view picture. 

When ACSA went through the environmental assessment, the Swatklip area was intended to be a housing area. If houses were built on that land, there would have been a huge impact in terms of noise.

ACSA bought the Swatklip land in order to protect the long-term growth of the airport and reduce the impact of noise on the communities by making the land around the airport only for aviation purposes. Further, the land represented a significant commercial opportunity and social impact.

The Swatklip site is located between the areas of Mitchells Plain and Khayelitsha. That area was used for arms manufacturing in the past. ACSA bought the land from Denell. ACSA is looking at how the site can be used for integrating Mitchells Plain and Khayelitsha.

Conceptual design approach

ACSA recently appointed a group of consultants to assist with the urban design and development framework for the Swatklip site and assist with stakeholder engagement.

The site is 500 hectares. ACSA will use the site for four components. First for housing:  ACSA has signed an agreement with the Housing Development Agency. Secondly, the site will be used as an educational component: ACSA has signed a lease with False Bay College. False Bay College will develop a training facility on the site that will start with 3 000 students. False Bay College plans to repurpose parts of the existing building. The third component is the wetland area which is environmentally sensitive. ACSA plans to use a portion of the wetland as an offset for work on the runway.

ACSA plans to go through a structured and transparent stakeholder engagement process. ACSA and the consultants planned to have an open day on the Swatklip site. The open day will be advertised in local community newspapers and it will take place in the first/second week of October 2019. The open day is an invitation to show communities the development plans for the site and provide an opportunity for community members to ask questions. The open day is in line with the broader process of ACSA where it meets with the five sub-councils of the affected areas. ACSA intends to establish a public committee nominated by the sub-councils where it will share information with the committee. ACSA values the partnership because what is done at the airport is not done in isolation. 

Discussion

Mr R Mackenzie (DA) thanked ACSA for the presentation which he said highlighted everything the Committee needed to know.  

He said one of the reasons the Committee wanted to engage with ACSA was because of community and separate fringe groupings that have raised questions regarding Swartklip. In the past, government discussed that the Swartklip site was going to be used to build houses for the people of Mitchells Plain and Khayelitsha. He appreciated the forward thinking of ACSA in buying the Swartklip site and integrating the site as part of the airports programme. 

Mr Deon Cloete, General Manager, ACSA, replied that ACSA never planned on buying Swartklip. ACSA had specific plans of land acquisition of the surrounding area around the airport (Stellenbosch arterial, N2 and Symphony Way). Over the last six years, ACSA went through a process of acquiring all that land and had met with various national and provincial departments and entities. Some transactions were concluded and others are still in the process of completion.

Through the Environmental Impact Assessment (EIA) process of the runway, ACSA realised the strategic importance of the runway. Currently, all ACSA aircrafts are sent over Mitchells Plain – this has a huge impact on the area. That is one of the reasons why the runway is being realigned. Looking at the prevailing weather conditions in the south east and north west, ACSA was advised by the pilots and technical teams that it was best to purchase the Swartklip site. This development will take the traffic build up away from Mitchells Plain and Khayelitsha by sending it over Swartklip.

Mr Mackenzie agreed with the comment of advertising the open day in community local newspapers where members of communities can attend themselves to learn about developments, engage with ACSA regarding these plans and to avoid unelected individuals speaking on its behalf.  The open day will be an important event for everyone.

He referred to community involvement and asked what the communication strategy is with the community of Mitchells Plain, Khayelitsha and with communities that do not have sub-councils close to inform them about meetings. He understands there were meetings held with the communities and that on 20 September 2019 there is going to be another meeting regarding False Bay. 

Mr Cloete replied that ACSA will ensure the open day is published as it an opportunity for people to come see what ACSA is doing.

Before ACSA purchased Swartklip, it first had to understand more about the site. The initial plan was to buy the site for housing but this would just have perpetuated bad historical planning. Swartklip is a result of old apartheid planning where there are two communities that are purposefully separated by government property and the military. ACSA understood the first strategic importance of the Swartklip site would be the airport and to develop the site in a way that reversed the historical bad planning by integrating communities in a way that make sense. 

Initially ACSA did not know much about the site. It engaged with different community structures from Mitchells Plain and Khayelitsha - some were more organised than others. However, ACSA realised this was unsustainable. Eight months ago, ACSA engaged with the sub-council managers in the areas in the meetings. There is a protocol and process that everyone engaging in the steering committee for the Swartklip site will work through the sub councils and elected officials. Where community-based structures were included in the sub-council process, ACSA ensured one side did not dominate the other. 

The next engagement will be with the sub council managers and will include interested parties in the constituencies, limited to certain protocol. ACSA will ensure the communication is structured and that there are no gatekeepers and people claiming ownership of anything.

Mr Mackenzie noted the presentation mentioned obtaining local labour is important. Where does ACSA advertise for local labour/ local supply development to get involved? Is there a database where the community can register directly without the involvement of the sub-councils? It is important to avoid local forums that falsely speak on behalf of the communities, for example, where development forums would pretend to speak on behalf of local plumbers or electricians.

In terms of future meetings to be held, how will ACSA work with the sub-councils to ensure only the elected voices and not the forums that pop up are invited to the meetings? Elected voices referred to CPS, neighbourhood watches, taxpayer’s association of Mitchells Plain united who have been elected by communities.

He expressed that the comment on the aerotropolis was interesting because it was something that the department has thought about.

He commented on the rail port, seaport and train port and referred to what is being done in Rotterdam, Netherlands, where there has been integration. Mr Mackenzie foresaw the False Bay training facility where learners can literally do their practicals at the airport on airplanes and do training at False Bay College, as an example of this. The airport and False Bay College would have to come together in collaboration. If that would happen, would bursaries for those learners training at False Bay College be possible and would ACSA and its partners offer bursaries learners from the local communities such as Mitchells Plain, Khayelitsha, Blikkiesdorp and Symphony Way? 

Mr A Van der Westhuizen (DA) said the education environment requires a low sound level area and the False Bay College site will be in the future flight path. How will the noise level be managed?

Mr Cloete agreed that one must be careful with the noise. The noise zones are the green areas. It is not coincidental that the winds influencing the operation of the airport and pilots are the same winds that shape those dunes and wetlands on the south east and north west. Aircrafts will fly over the green zones which are the noise zones. There are areas outside of that which are available for development. One of the inputs ACSA made on the EIA was where development could take place. Areas available for development could be developed with sound mitigation. Other industrial development does not have an issue of the noise.

Mr Cloete said the False Bay College facility will be a technical training facility where machines and workshop benches will be used which have an 85% decibel rating. ACSA will operate between a 60-65 decimal rating in the heavy noise zones. In the area where the campus would be situated, the noise will be less. There is compatibility. False Bay College will be the first and an anchor, but it will not be exclusive. ACSA encourages all institutions of learning to take part for people staying in Mitchells Plain to have access to quality education that will not require them to travel far. Other institutions were encouraged to set up a learning footprint at the site.

Mr Van der Westhuizen said the wetland attracts birds and while birds and airplanes both fly, they do not like flying in the same area. He asked for clarity regarding the birds.

Mr Cloete replied that in terms of the EIA study, birds will not be a problem and aircrafts at that altitude will not be affected by the birds. He agreed there is a big issue of birds at airports. 

Mr Van der Westhuizen said the development plans will require money and ACSA will probably have to borrow some of the money. Will ACSA’s rates and taxes for airlines using the airports facilities be competitive? How does the rate currently compare to other local and international airports? Is ACSA able to compete with private enterprising?

Mr Cloete responded that ACSA is celebrating 26 years and has never relied on any bailouts and government funding. ACSA is independent and self funded. If there were not enough funds, ACSA will approach the market for loans as it has been doing for many years. 

The Department always kept ACSA on its toes as far as airport taxes is concerned. Three years ago, ACSA reduced its tariffs by 35%. This was part of a broader concentration with the airlines fraternity to understand the impact of air travel and investment. Even with the reduction, ACSA had support from the airline industry.  The partnership with Air Access, led by Wesgro, has been a game changer. International traffic has doubled over last four years.  Ten years ago, international traffic in Cape Town was about 10%. Due to the additional traffic growth achieved, ACSA was able to secure enough confidence to get enough funding for this investment programme. The programme will cost R7 billion over the next five years. Funding of the programme and its impact on tariffs and taxes are carefully managed by ACSA’s regulator and industry at large - there are no significant spikes that will happen in that regard.

ACSA does not only focus on running tariffs but also commercial business. To this, ACSA has strong retail property development. Swartklip is an example of the property development. ACSA can mitigate any impact that the development will have on the tariffs

Mr Van der Westhuizen said most major airports have a rail shuttle service or rail commuter transport terminals but the CTIA does not have those services. He asked if those services are included in future ACSA plans.

Mr Cloete replied that there is a railway link commute on the ACSA master plan however it has not been a priority yet. One of the informal settlements, Malawi Camp, is on the footpath of where the railway would run through. ACSA would like that the railway passes through Khayelitsha as opposed to coming into the airport and returning. That is a conversation that ACSA will continue to engage in going forward. As mentioned in the presentation, the airport moves a great deal of aviation fuel each day. The fuel is moved by between 14 and 16 trucks daily – this is a huge operation. A fuel pipeline is something that ACSA is considering in the future. The railway and fuel pipeline are critical investments going forward.

Mr Van der Westhuizen asked about the Stellenbosch Arterial Road and existing terminal building as displayed on the master plan image provided to the Committee. He did not recognise the structures. 

Mr Cloete highlighted where the Stellenbosch Arterial Road is situated on the visual plans on the presentation.

Mr Van der Westhuizen asked if ACSA would be able to provide general information to the Committee about its expansion plan regarding transport because it is in a fortunate position where the whole world is moving in the direction of air transport as it is the fast mode of transportation. What is the future expansion for Western Cape Airports? Is there a future expansion of Plettenberg Bay Airport? 

Mr Cloete replied that there are plans for the other airports but he did not have all the detail currently. ACSA works very closely with George airport and Wesgro is also active in that space. Plettenberg Bay does not fall under ACSA airports. Previously there have been engagements in terms of when ACSA need to provide support.

Mr Van der Westhuizen said years ago, the CoCT mentioned some of its debtors had outstanding municipal accounts. He remembered seeing the CTIA being part of the debtors. He asked ACSA to ensure the Committee that its municipal accounts are up to date or if there is an agreement in place with the CoCT regarding outstanding debt.

Mr Cloete was not aware that ACSA owed the CoCT money. ACSA prided itself on being a regular payer and being one of the top rate payers in the city.

Ms N Nkondlo (ANC) asked what the bulk figure of the development was. 

Mr Cloete replied that out of the 500 hectares, ACSA will develop close to 200 hectares. They would like to push that a bit further because 300 hectares for green space is a bit generous in areas such as Mitchells Plain and Khayelitsha were the needs are so great. 

Translated 200 hectares into a bulk, ACSA will probably sit with 1.3 million square metres, and when comparing it with Century City it is about 2.6 million square metres. 

Ms Nkondlo (ANC) said the presentation displayed that ACSA is in partnership with the CoCT regarding housing development - will the housing element be funded by the national Department of Human Settlements? She asked for clarity regarding the funding structure of the project. 

Mr Cloete said that with the funding structure, ACSA was very generous regarding the runway strip. With the remainder of the land, ACSA will facilitate a process with the communities and local and provincial government in making sure the vision for the property is correct. There are many speculations about the remainder of the land - it could be a development project. ACSA will either sell or develop. One of things ACSA is keen on doing are development structures for communities. The other alternative is to establish a separate management structure – this would be a kind of subsidiary. It might be a structure that will partner with the province and the City to ensure efficiency and effectiveness.  At this stage, ACSA does not have an idea.

Ms Nkondlo questioned the cost of the Swartklip site. What is ACSA’s financial obligation towards the Swartklip development? The presentation highlighted that a big chunk of that site will be for the mixed use.

Mr Cloete replied that ACSA paid less than R200 million for the Swartklip site. 

Ms Nkondlo asked how ASCA is managing the communication strategy as mentioned by Mr Mackenzie. The presentation highlighted an agreement made with communities that will be relocated but what is the management of that process? An understanding is needed of how communities currently engage with government. She asked what the strategy is between ACSA and the CoCT in ensuring communities will commit to the relocation when the time comes.

Mr Cloete said that ACSA meets up with the leadership of each of the two structures every two months. The meetings are well structured, organised and have leadership. ACSA has funded leadership programs for the community leaders. ACSA works with the community leadership on anything and everything. ACSA had a meeting with the communities at Blikkiesdorp on 9 September 2019 and the Mayor was in attendance on request of the community leaders. ACSA is managing the issue of expectations and commitment very carefully.

Mr Cloete commented on the 2015 agreement that ACSA had signed with the City regarding the three informal settlements. The document has been well shared and it can be shared with the Committee.

Mr Cloete appreciated the commitment the department made since the agreement was signed. The CoCT has already appointed its professionals and is busy with final tender documents in the hopes of taking it to the market soon. The CoCT will start with its services early next year and toward the end of next year will start with the home building. There are 3 000 homes that are going to be built and moving 3 000 families is a big operation. Already from the three informal settlements about 600 people have been moved to various housing projects. There has been gradual relocation since the agreement was signed. This is a real commitment and budgets are in place. Community leaders are present at the steering committee project meetings together with professionals and engineers. The community engagement is very real and ACSA is grateful for this. The CoCT is integrally involved in the development - ACSA does not move without it. He commended the commitment the City brought toward the project.

Ms Nkondlo referred to the PWC economic impact study that was commissioned by ACSA in 2017 and requested a copy be made available to the Committee for information purposes.

Mr Cloete said he would do so. 

Ms Nkondlo referred to the community beneficiation mentioned in the presentation.  She asked if the skills programmes with Northlink College and False Bay College have started, the type of training being offered and exit strategies. Often such big developments create certain expectations that are often not met because of an outline that was not properly made. Is there a document that outlines the skills development programme?

Mr Cloete replied that the skills programme was initially an ACSA programme with funding of R5 million by the City. False Bay College secured another R5 million from the City. The skills programme started two years ago. The skills programme has 150 learners, half of whom are women who seem to be building better houses than the men. The programme has a full house building programme which takes a year to complete. There is a short term programme which focuses on plumbing and other sub disciplines. At the end of September there will be a graduation and an invitation will be extended to the Committee to attend. 

 The skills programme also assists people in the communities that already know how to do the job secure formal qualification. ACSA has made sure there is commitment from the communities. ACSA would like to do another round of the programme however it will depend on funding. 

Ms Nkondlo asked for clarity about supply development beyond the construction.

Mr Cloete said one of the things that came out of the Swartklip engagement and with the three informal settlements is the matter of localisation. ACSA went to National Treasury to request to apply localisation in a narrow form for the developments but Treasury cautioned against this. Treasury said there are other things to encourage involvement and had said there is no restriction on labour to be able to localise. ACSA, through sub councils, will inform constructors where they can have access to community members. There are contractors that do not have to be told to get communities involved anymore. ACSA is confident it will have everyone focused on the right direction and the final aim of a fantastic airport that will continue to serve the province, City and country in a way that will make everyone proud while taking the communities to the next level.

Ms Nkondlo was interested in what the socio-economic study has given ACSA in terms of readiness of the communities on the envisaged skills and enterprise development entities.  Further, how will ACSA manage the community’s expectations?

Mr Cloete said this development will be a game changer for the City and province. This is one of the reasons why ACSA opted to go to the Council or to the City for application for zoning of sub pockets of land. The entire development framework will be influenced and shaped by the communities, province and the City. ACSA has taken the Premier, Mayor and Air Access to visit the Swartklip site. 

On the matter of water, ACSA learned from the draught. It explored and found water reserves under the airfield, tapped into the reserve and now the airport is self-sufficient not only for operation but also for purposes of construction. During the construction, a billion litres of water will be used. The scope of the development is very ambitious.

Mr Cloete said that ACSA will plan very carefully and make sure it inconvenienced people as little as possible. It will be a significant challenge to manage operations and construction at the same time. ACSA, on average, will be spending about R100 to R250 billion per month for the next five years on construction. ACSA has a strong and competent team that planned carefully and prepared.  

The only entity now that is currently doing a project on the Swartklip site is the False Bay campus. The CoCT gave ACSA a temporary ten year departure after a public consultation process which allows the campus to not have to wait for zoning approval that could take to two to three years. The first building has been completed. An invitation was extended to the Committee to visit Swartklip and other community structures.

Mr Cloete raised the critical matter of security for employees who must be at the airport at 4:00 am. Building a strong social impact, as mentioned during the presentation, is important because the communities become the first protectors when it comes to security. For example, when the fence at the airport was vandalised, the airport is usually informed by a community member of the problem. This shows the type of relationship the CTIA has with the communities. However, this does not take away the security problems that happen on the N2. ACSA has had to deploy people on foot around a 30-kilometre radius and lights and a detection system has been installed. ACSA continues to engage with the Premier and Mayor on the challenge of security because it only takes one incident to have an impact on everyone. ACSA asked the Committee for support in terms of resourcing around the security challenge. 

Mr Van der Westhuizen commented on the informal settlement and industrial area next to Robert Sobukwe Road situated on ACSA land. Will the people staying in that informal settlement will be relocated? That industrial area is being managed well but will this land be made available for future development?

Mr Cloete replied that some of the land is ACSA-owned and the other part belongs to the CoCT.

Mr Van der Westhuizen said the CoCT is trying to promote non-motorised transport in order for people to stop using private transport. What is ACSA doing in support of this movement? Much economic activity is happening around the airport - what is ACSA doing to encourage the industrialisation/ field of logistics that will allow entities to integrate with the airport activities and will land be made available for such industries? 

Ms N Makamba-Botya (EFF) asked what the timeframe for the relocation of the communities is seeing that the expansion of the airport starts in 2020 and there are only a few months left of 2019. The tender process must cater for the previously disadvantaged companies and not only cater for the companies that are already wealthy. ACSA must take that into account so that the people do not only benefit as employees.

Mr Mackenzie referred to the intended development between Freedom Farm and Blikkiesdorp and asked if there will be link between those two areas in the future. Or will they be developed on their own as they currently stand? With the expansion of the airport, how does ACSA intend to safeguard passenger luggage? He thanked ACSA for providing specific parking areas for Ubers at CTIA as it is rare to find that in other airports. He asked how ACSA can make finding Uber drivers more efficient during peak hours. He asked how the meter taxis at the airport can make their service more efficient and user friendly because they charge more than Uber. Are their prices more expensive due to the rental being high or are they generally more expensive? 

He asked for the date of the open day and where it will be advertised for community members to attend.  He asked for the contact details for a team from government regarding the expansion of rail way as the Premier suggested the Committee look at what Rotterdam is doing regarding the seaport development.  ACSA broadens the airport experience not only for people using the airport but also the people staying in the surrounding areas. 

Ms Nkondlo agreed with the potential to depart from the past through what the development can do only if it is properly managed. She was happy with the innovation and ideas that ACSA shared in its presentation of integrating the communities. The development is a matter of before and after, and the extent to how the socio-economic profile of these communities will be changed. She was interested in the geography of the investment of the five kilometre radius. A study post the development would be interesting so as to see how the R4.7billion contribution filtered down to the communities in creating the change. There has been an interrelation with the economy missing those communities for many years. 

Ms Nkondlo said she grew up in Gugulethu but the airport never felt part of the people that grew up next to it. Community members never even thought of studying airport-related skills at universities. She emphasised this must change. Government must work with ACSA in order to change the stuck reality and promote safety in those areas. She mentioned a safety summit that was discussed that included Nyanga, Gugulethu and others. She hopes the issue raised in the presentation will be integrated.

She wondered whether a transport hub can be integrated. Planning must also involve members of the community staying close to the airport which struggle to get to the airport in the morning to catch a morning flight because the area is unsafe and no Uber driver wants to pick up a customer at 4 am. Community members are also part of the economic hub. Planning must not be only for the people using the airport. She suggested ACSA speaks to aviation skills during the open day for young people. Is awareness being raised on aviation careers to people staying in Mitchells Plain, Gugulethu and other areas? She wants to see female pilots and them repairing aircrafts. 

Mr Mackenzie commented on the main source markets and asked if with the current xenophobia attacks, has there been any direct impact from people travelling to and from African countries. With the netball tournament in 2023 coming to South Africa, will the airport be done by then in terms of the main lines? 

He commented that during the Christmas period, OR Tambo Christmas lights were very nice and fancy however when he came to CTIA he did not get the feel that it was Christmas. He asked if ACSA can look at that and make CTIA nicer during the Christmas period.

The Chairperson questioned how renewable energy was incorporated at CTIA. How much is the airport paying Eskom for electricity? How much would the airport save if it did not have to pay Eskom for electricity and use renewable energy? What is the progress of the upcoming USA flight on16 December 2019? Where is it in terms of preparation? The George Airport is completely renewable and has a won many accolades and awards for this. How will ASCA prevent the energy crises in the future? Regarding the Wetlands and undeveloped areas, Is there a possibility for eco-tourism in that area? If so, how?  

There are some Asian countries that do not have direct routes to Cape Town yet they have a big share in the tourism of the Western Cape - how is ACSA planning for that in terms of possible new direct routes? Is there a plan undergoing to secure new routes? 

Mr Cloete responded that the Freedom Farm land belongs to ACSA and the CoCT.

Relocation of the informal settlements is happening because of airport development. In terms of the 2015 agreement, there is a commitment of all three of the informal settlements. However, a specific reference is made towards Freedom Farm where that community will be relocated before the commissioning. Malawi camp and Blikkiesdorp relocation will happen in the next three to four years. 

The industrial area is ACSA property. The reason why that land is half way developed is because of the short cross runway which will fall away in the new configuration. It could have not been safe because of the approach of aircrafts. As soon as that short cross runaway is closed, ACSA will be able to develop the area. 

Mr Cloete said ACSA has a major role to play in the public transport. When it invested in the parkades a couple of years ago, it was mindful there might come a time where the parkades would be empty. The parkades are built in a way that they can be repurposed into other structures.

 ACSA is excited about the current project they are running with the CoCT where the airport can be usedas a park-and-ride because the N2 congestion is a big challenge. ACSA proposed that people coming out of the Northern Suburbs can park their cars at the airport and take the bus to town using a bus card. ACSA wants this whole process to be financially beneficial for the users as opposed to driving to the city and paying city parking. This is a project that will help ease traffic on the N2 and put the airport’s parkades to good use.

Mr Cloete hoped to provide the committee with more details in the next meeting on the logistical integration. The development site is not as big as the Swartklip site - on its own the site is 70 hectares. The beauty of the site is the road access to Symphony Way. ACSA is developing commercial business in that area. It is working closely with the province to understand the key areas to allow the commercial and industrial zone to integrate with the airport. That site is not only a commercial space but a strategic one that will allow ACSA to drive cargo and logistics. The airport’s cargo numbers have increased by 50% since Air Access came on board. ACSA understands the airline’s going forward will rely more on cargo for its business case to make the routes more sustainable. ACSA will push the cargo agenda along the sectors that are very critical for the region. For example, ACSA received a proposal for a cement factory which it rejected because the factory does not fit in with the plans.

The project is two-year construction with four to six months for the commissioning of the new air routes. In the agreement signed, Freedom Farm will have been relocated fully while Malawi Camp and Blikkiesdorp will be moved partially. Between Freedom Camp and Malawi Camp there are about 500 families that have been relocated. ACSA is working tirelessly with the leaders at Freedom Farm to make the relocation a success. The three informal settlements are showing strong leadership and making sure the agreement is implemented.

ACSA is a fully pledged State-Owned Enterprise (SOE), fully subscribed to the principle of making sure of getting previously disadvantage organisation not only in terms of employment but how service providers are used. For example, the airport has several engineers and majority of them are black women. This shows that ACSA is not only dealing with soft skills but hard skills and industry skills. 

Mr Cloete replied to the question regarding linking the precinct saying ACSA has not put that on the plans yet. The master plan will be reviewed in 2020. The distance between the new runway and the future second runway is 1.1 kilometres – this is important in order to have an independent operation where aircraft can land and depart at the same time safely. There is also an opportunity to develop the area between the runways. One of the options is have an underground that will provide for more efficiency but this is expensive. The current R7 billion investment is for the runway and towards the buildings. 

Safeguarding of baggage is always a big challenge. There is a broader social context that ACSA deals with and from its perspective much has been done. The baggage claim area is now automated and baggage rotation is done through machines. CTIA has what is called baggage reconciliation - it measures how long luggage takes from one point to another. The system can tell if a bag in not on board or where it is supposed to be. There is also security screening. There are various activities to mitigate risk of interference. There are security check points and there is another security process area when entering the baggage area. When the staff walk in and out, they are searched on entry and when exiting.  ACSA extended an invitation to the Committee to visit the airport. ACSA is in a joint committee with the airlines and baggage reaction unit. 

ACSA realised the Uber area is highly congested. Before the end of the year, the Uber area will be moving to parkade two where there will be a better processing configuration. The valet operators in parkade two will be moved to parkade one i.e. a level up. The ground floor, where the current pickup is situated, will be integrated with the terminal as a processing area.  ACSA is talking to Uber in terms of improving its experience. ACSA is also engaging with meter taxis. ACSA is currently in a legal process with the meter taxis. ACSA is currently engaging with other airports on how it will run a tender process that will allow new people to hold the taxi tenders with the airport as the current meter taxis have had their tenders with the airport for a long time. They are also engaging on how to improve the service, pricing and quality of vehicles. ACSA hopes the market will achieve some of the goals. There is room for both Uber drivers and meter taxis as they are key players in the value proposition but in a way that passengers will feel welcome.

There are currently two dates for the Swartklip open day that ACSA will choose from – 4 and 5 October or 8 and 9 October. It will be on site at Swatklip for two days in the week from 14:00 until 19:00. The advertisement will run in community newspapers including People’s Post, Vukani and local radio.

Mr Cloete said when the Premier visited Swartklip, he expressed how ACSA should look at the rail port concept and he referred to Rotterdam. ACSA is keen to be part of that and for this will work closely in collaboration with partners in the province and Air Access. 

For community involvement, ACSA has met with the community structures from Mitchells Plain and Khayelitsha Development Forum (KDF), and recently engaged with the Gugulethu Development Forum (GDF). ACSA is starting to have a broader understanding of the structures of how they can be part of the process. ACSA continues working hard and is community driven.

Swartklip has a big risk of potential of invasion. With the draught over the past three years, some of the wetland areas on Mew Way became dry and people have moved in. There are currently 70 structures in that area where they are not supposed to be. ACSA has been working with the City to find alternatives there. It has been working with the community to reach a solution on how to assist when the area floods. That area is being managed well and ACSA has on site presence working with community leaders.

 Integration of the transport model is an important matter for ACSA and it has sought out what the CoCT is planning with My-Citi regarding the new major terminus in Philippi. The linkage long haul taxi and long-haul coaches will be brought in as part of the master planning process for review. It will be sad to grow in air access but not get the passengers from the airport into town because of road transport. The entire concept of integrated transport is critical. 

ACSA has an aviation academy but it is situated in Johannesburg only. It is exploring whether Swartklip could provide for a similar facility in Cape Town however this is still n discussion stage. ACSA has seen a big need for aviation skills not only for South African communities and airport staff but across the continent for skills whether in fire and rescue and ATNS. Skills and training is important for ACSA. There are young learners around the airport from surrounding communities such as Mitchells Plain and Khayelitsha, training to get a credited certificate in fire and rescue and aviation security. Once the learners finish the learnership, some are formally recruited. ACSA has a strong focus on growing its own timber and creating skills within.

The xenophobia has not impacted the airport directly and it is hoped the airport will not be impacted. All routes flying across the continent have not been affected. 

Mr Cloete said he will be leaving for Australia soon for the World’s Route Conference. The Air Access team has been preparing for weeks for this once in a year event with the hopes of securing more international routes as well as in the African market because if there is no Africa strategy there is no growth strategy. 

ACSA is proud of its presence and brand in other countries. ACSA has been in India for over ten years and recently in Brazil for over six years. Some of ACSA’s colleagues have recently completed a mission in Ghana and are busy assisting in Zambia with its terminal.

For the Netball 2023 tournament, the domestic arrival terminal will be ready but the international terminal will not be complete but ACSA will be fully prepared to receive passengers. The ACSA team prides itself in its ability to host events. 

Regarding the Christmas lights, ACSA thought it was doing well however it will investigate creating more Christmas displays. ACSA understands the importance of creating an ambience in the airport. For example, there is a fly-brary where a passenger can take a book and leave a book in its place that they have read. There is also a winery. Such innovations are important to have in an airport.

ACSA is at the early stages of securing renewable energy for the CTIA. Some of the sister airports, such as George and Upington, have succeeded in securing renewable energy in their airports. The CTIA will focus on renewable energy since it has found a solution for the water. However on a practical level, ACSA will not be able to fully run with renewable energy. ACSA will share with the Committee what its current consumption is and the arrangement with Eskom. Before the draught, the airport was using a million litres of water but it has been cut down to 6 000 litres. When it comes to electricity, the airport has a unique demand as it has sensitive and critical infrastructure such as runway lights that are important for landing aircraft. The airport has generators that allow for interruption. ACSA aims for certain targets in its master plan review for a sustainable perspective. ACSA is looking at incorporating solar panels into the new building however there are factors to be mindful of such as reflection. 

Mr Cloete said the CTIA welcomed Gatwick, London as a new route and this year it celebrates the first direct flight to New York. ACSA is prepared for the New York flight and has been for two years. It has engaged with the USA consulate through the provincial Wesgro structure.  

The Swatklip area is a green space. ACSA has looked for various models for the green area, such as in Intaka Island at Century City and has been speaking to Cape Nature. ACSA would be happy to claim that space and develop it into a structure that will be managed from an environmental-technical perspective. For broader development, ACSA is looking at making it a sustainable green area. The team has been looking at using the space as a visitor centre which can also double up as a training centre for tourism for kids so that they will have access to the site. The area is sensitive from a wetland and dune perspective however ideas have been discussed where a boardwalk is created to keep people out of the wetland and dunes. People can cycle, walk and run. Historically, Swartklip was a no-go area but ACSA wants to make it accessible to a full extent. It is a wonderful space for eco tourism and there can be bicycle tours.

On the Khayelitsha side, the community has been using part of the area for traditional purposes and initiation school. ACSA has been engaging with the community extensively on that and made a commitment to the community to structure that site and accommodate in the broader precinct.

The Asia route is a critical part of ACSA. Currently the direct Singapore route only goes via Johannesburg but it has made a commitment to look at establishing a direct route from the CTIA. Cathay Pacific has a direct route but this only runs for three to four months but there has been commitment to increase this to six to 12 months. On the world route, ACSA will engage with other Chinese-based airlines and see if agreement can be concluded with them. Securing a route with an airline takes about three years. ACSA still focus on supporting existing airlines in order for them to grow.

Ms B Mpahlaza-Schiff, Acting Chief Director: Catalytic Economic Infrastructure, Western Cape Department of Economic Development and Tourism, commented on the sectors that ACSA is looking at for the broader expansion. The pharmaceutical industry has 33% of health technology firms in the Western Cape which is a wonderful advantage. The routes into Africa mean that South Africa can assist the rest of Africa with the critical need of medicine at a lower cost.  For the Department, that is how air routes critically links into a sector and why one would look at an industrial park focusing on health technology. One of the principles of routes is that they must be high value low volume. For example, flower exports – this is a beautiful example of what needs to be exported but also supports the lowest skilled and less paid people. The agricultural industry is in distress. Using these opportunities from an industrial development point of view as well as logistic and airport point of view, is a critical factor of the Department’s five-year strategy going forward. This is why the Department supported the routes in the first place specifically into Africa to support the rest of the continent.

One of the beautiful things that ACSA has done is stimulate economic activity within its development and surrounding areas. The consumptive area of the aerotropolis has the potential to displace Nyanga and surrounding informal business, for example of the airport has “hotshot” restaurants. ACSA’s engagement has been how to continue to support those areas and business while making for an attractive airport – the Department commended ACSA on that.

The Department is planning on supporting tourism and digital skills in Swartklip within the concept of False Bay College, which the Department has a relationship with. The Department is excited about the development.  

Integrated transport has become a crisis for everybody. She understood that there are discussions with the Mayor and Premier because of the crisis. She would feed back to the Department the comments and views of Members. 

Resolutions

-ACSA shared a general invitation to the Committee to visit the airport, for the open day and graduation ceremony for the students. ACSA would also provide the Committee with the 2015 agreement and PWC study.  

Mr Mackenzie asked if ACSA can provide input on the Rotterdam airport

The Chairperson rephrased that to request that ACSA provide a summary or overview of how the Rotterdam rail port works and this can possibly be incorporated into the CTIA.

Mr Van der Westhuizen said the Committee must acknowledge from an economical point of view that this is a major investment into the economy of the Western Cape. He proposed the Committee express its appreciation for ACSA creating the potential for furthering economic growth. It is an investment that will yield much benefit down the line.

The Committee must undertake to monitor progress of the project and timeframes for construction. He believes this project is a key asset for the Western Cape.

Lastly, he proposed the Committee take interest in other airfields in the Western Cape because air transport seems to be a fast growing mode of transport. He believes there are areas in the Western Cape that can benefit from regular flights, even if its small planes, to areas such as Beaufort West. 

The Chairperson asked if Members would like her to write a letter of appreciation to ACSA.

Ms Nkondlo agreed with the proposal to write a letter of appreciation. The letter must also acknowledge the role played by the City and local community members. Partnerships with SOEs, government and communities are important to change the type of local economy. 

On the challenge that was raised about the safety, she proposed the Committee write a letter to the Premier indicating that the matter of safety was raised in the meeting and to see what interventions the Premier can establish to support the matter. She believes it is a matter that the Committee needs to raise and consider.

Mr Van der Westhuizen added that the letter on the challenge of safety be sent to the police commissioner too so that the police can play a role in that.

The Chairperson requested that ACSA provide the Committee with the statistics of how much it is currently paying Eskom, statistics on current renewable energy, plans for the incorporation of renewable energy into the airport, a summary of ACSA’s plans for eco-tourism in the area and to forward the advertisement for the open day.

Mr Mackenzie asked that ACSA keep the Committee informed of the process going forward particularly on the Swartklip development. Invitations to meetings can be sent to the Committee. The Committee should also be informed of when the finalised date for the open day is decided. 

The Chairperson said that ACSA must notify the Committee in advance when the meetings will take place and the date of the open day so that the Committee will be able to attend and monitor the programme.

She asked Members if they accept the invitation. 

Members agreed with the resolutions. 

Consideration and adoption of Committee Minutes dated 6 August 2019 

The Chairperson presented the minutes to Members and asked if there were any amendments to be made. 

There were no amendments and Members moved to adopt the Committee Minutes dated 6 August 2019 as is. 

The meeting was adjourned.