NATIONAL COUNCIL OF PROVINCES
FOR WRITTEN REPLY
QUESTION NO 164
DATE REPLY SUBMITTED:
DATE OF PUBLICATION IN INTERNAL QUESTION PAPER: FRIDAY, 06 NOVEMBER 2009
(INTERNAL QUESTION PAPER NO 23 â 2009)
Mr R A Lees (DA â KZN) asked the Minister of Transport:
(1) Whether the Airports Company SA (ACSA) has any intention of selling
or entered any negotiations to sell the Durban International Airport;
if not, why not; if so, (a) how will this airport be disposed of and
(b) with whom (i) have negotiations been held or (ii) will
negotiations be held;
(2) whether a benchmark price has been determined; if not, why not; if
so, what are the relevant details;
(3) whether the airport will be sold as a going concern; if not, why not;
if so, what are the relevant details;
(4) whether the airport will be sold to a developer who would not want to
maintain the property as an airport; if not, why not; if so, what are
the relevant details?
CW261E
REPLY:
The Minister of Transport:
1) Yes, the Durban International Airport (DIA) will eventually be sold.
a) A task team comprising of National, Provincial and Local
Government, as well
as the Airports Company South Africa Limited (ACSA), has been
established to explore potential uses for the land, taking into
consideration its strategic nature and the need to remunerate ACSA
appropriately.
a) (i) During 2008, a proposal was received from Transnet Limited for
the acquisition of the DIA site, but the proposal has since been
withdrawn.
a) (ii) Following the outcome of the reply to (a) above, a negotiation
and disposal process will be agreed to with Government.
(2) The Durban International Airport site will be sold at market price
and the negotiating parties will undertake appropriate benchmarking
and ensure fair value through agreed and independent preferred
valuations. This is standard in any commercial transaction. In
addition, and as per the Public Finance Management Act, 1999, and the
Airports Company Act, 1993, the Minister of Transport must approve the
transaction and sale of the property before it is implemented.
(3) and (4)
ACSA will decommission its airport business at Durban International
Airport and relocate to the new site at La Mercy, where a Greenfield
airport development is underway for completion in early 2010. The
task team referred to in reply to part (1) of the Question above will
advise on the best options available to all spheres of Government and
ACSA for the potential uses of the land in order to ensure that
Governmentâs strategic and economic development requirements are met.