Registered users can save articles to their personal articles list. Login here or sign up here

New Durban cruise terminal to boost tourism, jobs in SA

Geneva-based MSC in joint venture to develop R200m port project.

Construction work on the new R200 million Durban Cruise Terminal at South Africa’s busiest cruise port will commence in November and is due to be completed in 2021.

This was confirmed by the MD for MSC Cruises South Africa, Ross Volk, who was speaking at a media briefing in Sandton on Tuesday, adding that this is part of significant investments by the Italian, family-owned company into the country’s booming cruise tourism industry.

“MSC Cruises is committed to growing the cruise tourism sector in the country and Africa at large. We are investing heavily in infrastructure as well as training, which includes the new Durban Cruise Terminal that will also house the MSC Shosholoza Ocean Academy,” Volk told Moneyweb.

“The construction on this state-of-the-art terminal is an exciting project that MSC Cruises is proud to be a part of. We plan to break ground on the development in November this year.”

MSC Cruises is the world’s largest privately-owned cruise company with a fleet of 16 cruise ships currently operating in all the major cruise tourism destinations. It is part of MSC Group, the leading Swiss-based shipping and logistics conglomerate that also runs extensive cargo shipping operations out of South Africa.

A decade of cruises from SA

The group has operated cruise ships out of South African waters for over a decade, largely via its local homeport of Durban to Mozambique’s Portuguese isles, Madagascar and Mauritius during the summer season. Last season (2018/2019) it handled over 130 000 cruise passengers in South Africa and saw an increase of 25%.

MSC Cruises has been calling for better embarkation facilities at the Durban port for years. Last year it signed a deal with Transnet National Port Authority (TNPA) to invest in a new cruise terminal as part of the KwaZulu Cruise Terminal Consortium (KTC). TNPA has identified a better location for the cruise terminal at the entrance to the port, adjoining the multi-billion rand Durban Point Waterfront development.

Read: Durban demolishes derelict buildings to unlock new development

In a brief response to Moneyweb, TNPA said KCT is presently finalising the detailed design of the Durban Cruise Terminal building. “TNPA granted KCT a 25-year concession to finance, construct, operate, maintain and transfer a new cruise terminal facility in the Port of Durban, estimated to be a R200 million-plus project.”

According to Volk, the cruise terminal will be a multi-user facility, meaning that while MSC will be the main user of the terminal, it can be used by other cruise line operators to Durban. He says the more than R200 million investment will be part of the first phase of the new terminal, which will be capable of handling some 4 000 passengers at a time.

Ross Volk, MD of MSC Cruises South Africa. Image: Supplied

“This terminal will make Durban an even more desirable destination for cruise ships from all over the world,” he notes.

“It will substantially boost tourism numbers, create thousands of jobs and lead to supplier development.”

Volk says that as part of its investment into the development of the cruise tourism industry in South Africa, the new MSC Shosholoza Ocean Academy aims to train some 5 000 young people over the next five years.

“They will receive the skills necessary to work on cruise ships and once qualified will be given an internship to work on our cruise liners both in SA and around the world. With this initiative, MSC Cruises is supporting President Cyril Ramaphosa’s call to grow the tourism sector in SA and create jobs,” he says.

Read: SA bound for tourism growth in 2019

Speaking at the MSC Cruises event, Angelo Capurro, the group’s global executive director noted: “South Africa is an important market for MSC Cruises and reflects our broader growing investment in cruising globally.”

“In fact, in South Africa for the next cruise season starting in December, we will have two ships operating. The bigger MSC Musica with capacity to carry 3 200 guests will be homeported in Durban, while MSC Opera will be homeported in Cape Town and have a capacity for around 2 500,” he adds.

Capurro says MSC Cruises has committed to launching 13 next-generation ships between 2017 and 2027, which will bring its fleet total to 25 and see its passenger capacity more than triple to around five million globally.

The company’s total investment in these ships amounts to around R200 billion.

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

AUTHOR PROFILE

COMMENTS   6

To comment, you must be registered and logged in.

LOGIN HERE

Don't have an account?
Sign up for FREE

I wish them luck. wonder how it’s gonna work with the 51% BE component for mahala ?oink oink

R200bn project will (naturally) escalate to a R600bn cost overrun.

2021 completion date expected to be around 2031(?)

By that time, the Chinese (who will by that time would’ve loaned Eskom) will demand loan-repayment & will likely acquire the harbour lock, stock and barrel from TNPA as “payment”. China will develop a portion into a naval facility, and part commercial, for their global expansion aims.

(MSC Cruises will still do business, but port fees will be in Yuan. Having said that, the Chinese will probably run the harbour more efficient, so expect future costs likely to improve.)

a few years back cruise liner was meant to be parked in Durban harbour as a hotel – never happened. me thinks same is gonna happen to this plan

If MSC Cruises decides to leave; what then? We will be sitting with another white Elephant.

That logic can be applied to almost anything.

Rather don’t do anything and moan about that.

My family and I did the MSC cruise once and sadly won’t recommend it. The food is mass produced, bland, tasteless, pre-cooked and often cold. However, if you are the type of person WHO LOVES EATING BUFFET and you would like to stuff your face with food and get a 2nd, 3rd, 4th or 5th helping, then this is definitely for you.

Load All 6 Comments
End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR
Insider GOLD
ONLY R63pm

Moneyweb's premium subscription is a membership service which will give you access to a number of tools to take charge of your investments.
Choose a yearly subscription at R630pa - SAVE R126

Get instant access to all our tools and content. Monthly subscription can be cancelled at any time.

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: