DUBE TRADEPORT CORPORATION€¦ · Dube TradePort Corporation (DTPC) is a Schedule 3C public entity established by the KwaZulu-Natal (KZN) Provincial Government to ensure that DTP

DUBE TRADEPORT CORPORATION

ANNUAL PERFORMANCE PLAN

for

2014/15

KwaZulu-Natal

January 2014

Annual Performance Plan 2014/15

2

FOREWORD

As the Province’s foremost mega-development, Dube TradePort (DTP) - a master-planned, world-

class air logistics hub - has become a key driver of economic growth, employment creation,

foreign direct investment, and trade (export and import) expansion. It is thus critical to the

realization of the Province’s 2030 Vision of becoming the global trade gateway to the African

continent and the rest of the world, and the only facility on the African continent that

encompasses an international airport, a dedicated cargo terminal, an agricultural zone, and

prime space for the development of warehouses, offices, retail outlets, hotels and other airport-

related facilities.

Dube TradePort Corporation (DTPC) is a Schedule 3C public entity established by the KwaZulu-

Natal (KZN) Provincial Government to ensure that DTP realises its full potential. DTPC is tasked with,

among others, the enablement of new air services, the provision of state of the art facilities,

leading edge spatial planning, and the facilitation of the supply of products to (especially) export

markets. The underlying commonality is the air logistics platform which facilitates the flow of air

cargo through Dube Cargo Terminal.

The 2014/15 financial year offers many opportunities for DTPC’s Board, Executive Team and

members of staff to build on the successes during 2013/14, while seeking new avenues of

expansion and innovation with a view to becoming Africa’s preferred airport city (or aerotropolis).

Together with its many private and public sector stakeholders, DTPC is looking forward to:

Harnessing new international and regional air services to grow air cargo and passenger

throughput. Emirates has increased the size of the aircraft used in its daily flights from

Durban and Air Mauritius is to resume direct flights to King Shaka International Airport.

Effectively transforming DTP from an infrastructural development to a highly competitive

business operating environment following considerable private sector business uptake in

both Dube TradeZone and Dube AgriZone.

Fast-tracking the opening of the second phase of Dube TradeZone having successfully let

almost 90% of its first phase.

Facilitating the development of a Mega Industrial Integrated Township - in association with

India-based conglomerate Action Group - on the southern-most perimeter of DTP and

attracting up to R20 billion in foreign investment.

Harnessing the full potential of two new developments at Dube AgriZone i.e. Dube AgriLab

and Farmwise Packhouse and Distribution Centre in association with various stakeholders.

These new facilities completed the first phase of Dube AgriZone, and DTPC are now in the

process of obtaining environmental approval, attracting more growers, doing a new

Master Plan and designing of facilities for the construction of a second phase.


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Planning and establishing an enabling environment for the vision of the Dube Aerotropolis

include working closely with various stakeholders in acknowledgement of the potential of

the project to become a national Special Economic Zone (SEZ).

As MEC of Economic Development and Tourism and on behalf of the Government of KZN, I fully

endorse DTPC’s strategy, programmes and targets as contained in this Annual Performance Plan

and have no doubt that they reflect our policies, strategies and goals which are realistic,

appropriate and deliverable.

Mr. Michael Mabuyakhulu

MEC for Economic Development & Tourism

KwaZulu-Natal Province


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OFFICIAL SIGN-OFF

It is hereby certified that this Annual Performance Plan:

Was developed by the management of Dube TradePort Corporation under the guidance

of both the Dube TradePort Corporation Board and Mr. Michael Mabuyakhulu (MEC for

Economic Development and Tourism) in his capacity as the Executive Authority

Was prepared in line with the current Strategic Plan of Dube TradePort Corporation

Accurately reflects the performance targets which Dube TradePort Corporation will

endeavour to achieve given the resources made available in the budget for the 2014/15

financial year and within the constraints and opportunities of the market conditions

Ms. A.B. Swalah Signature: _____________________________

Chief Financial Officer (CFO)

Ms. L.H. Mulder Signature: _____________________________

Responsible for Planning

Ms. S. van Coller Signature: _____________________________

Accounting Officer (CEO)

Dr. B. Gasa Signature: _____________________________

On behalf of the Accounting Authority

Approved by:

Mr. M. Mabuyakhulu Signature: _____________________________

Executive Authority (MEC)


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TABLE OF CONTENTS

1 UPDATED SITUATIONAL ANALYSIS ........................................................................................................... 7

1.1 INTRODUCTION ................................................................................................................................. 7

1.1.1 OVERVIEW OF DUBE TRADEPORT (DTP) ..................................................................................... 7

1.1.2 OVERVIEW OF DUBE TRADEPORT CORPORATION (DTPC) ...................................................... 9

1.1.2.1 VISION ........................................................................................................................................ 9

1.1.2.2 MISSION ..................................................................................................................................... 9

1.1.2.3 STRATEGIC GOALS ................................................................................................................... 9

1.1.2.4 PROGRAMME STRUCTURE ..................................................................................................... 10

1.1.3 OVERVIEW OF DTPC’S ANNUAL PERFORMANCE PLAN 2014/15 .......................................... 10

1.1.3.1 ALIGNMENT WITH RELEVANT POLICIES AND STRATEGIES ................................................... 11

1.2 SITUATIONAL ANALYSIS .................................................................................................................. 14

1.2.1 Global economy ....................................................................................................................... 14

1.2.2 South African economy ............................................................................................................ 15

1.2.3 Economy of KwaZulu-Natal ...................................................................................................... 15

1.3 Performance Delivery Environment ............................................................................................ 16

1.3.1 Notes on Key Delivery Areas .................................................................................................... 17

1.3.1.1 Competitiveness .................................................................................................................... 17

1.3.1.2 number of direct jobs created on-site ............................................................................... 17

1.4 Organisational Environment ........................................................................................................ 18

1.5 Revisions to Legislative and Other Mandates ........................................................................... 18

2 Review of 2014/15 Budget and MTEF Estimates ................................................................................. 19

2.1 Expenditure Estimates ................................................................................................................... 19

2.2 Relating Expenditure Trends to Strategic Outcome Orientated Goals ................................. 19

3 Programme 1: Administration .............................................................................................................. 22

3.1 Strategic Objective Annual Targets for 2014/15 ....................................................................... 23

3.2 Programme Performance Indicators and Annual Targets for 2014/15 .................................. 24

3.3 Key Activities for 2014/15 .............................................................................................................. 25

3.4 Quarterly Targets for 2014/15 ....................................................................................................... 26

3.5 Reconciling Performance Targets with the Budget and MTEF ................................................ 27

3.5.1 Programme 1: Expenditure Estimates .................................................................................... 27

3.5.2 Performance and Expenditure Trends .................................................................................... 28

4 Programme 2: Cargo and Air Services ............................................................................................... 29

4.1 Strategic Objectives: Annual Targets for 2014/15 .................................................................... 30


4.2.1 Improved Reporting on Performance Indicators .................................................................. 32

4.2.1.1 Notes ....................................................................................................................................... 32






5 Programme 3: Property ........................................................................................................................ 36





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5.2.1.1 Notes ....................................................................................................................................... 40






6 Programme 4: AgriZone ....................................................................................................................... 44




6.2.1.1 Notes ....................................................................................................................................... 47






7 Programme 5: Information Communication Technology (ICT) - Dube iConnect ........................ 52



7.1.1.1 Notes ....................................................................................................................................... 55



7.2.1.1 Notes ....................................................................................................................................... 57






8 Programme 6: Development Planning and Infrastructure .............................................................. 60




8.2.1.1 Notes ....................................................................................................................................... 66






9 Programme 7: DTP Special Economic Zone (DTP SEZ) ...................................................................... 70

10 Links to the Long-Term Infrastructure and Other Capital Plans ................................................... 71

11 Appendix A: 60-Year Master Plan .................................................................................................. 74

12 Appendix B: Strategic Goals and Objectives for KZN until the Year 2030 ................................ 75

13 Appendix C: 12 Outcomes of Government ................................................................................. 76

14 Appendix D: Medium-Term Strategic Framework........................................................................ 76

15 Appendix E: Millennium Development Goals ............................................................................... 77

16 Appendix F: DTPC Alignment with PGDS and PGDP ................................................................... 77

Appendix D: List of Abbreviations .............................................................................................................. 80


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PART A: STRATEGIC OVERVIEW

1 UPDATED SITUATIONAL ANALYSIS

1.1 INTRODUCTION

1.1.1 OVERVIEW OF DUBE TRADEPORT (DTP)

Occupying a 2 040 hectare Greenfield site, Dube TradePort (DTP) is a master-planned, world-class

passenger and air freight hub encircling King Shaka International Airport (KSIA) , located 30

kilometers north of Durban. The official opening of DTP in March 2012, presided over by President

Jacob Zuma, set the scene for trade expansion, economic development, job creation, export

diversification, and increased foreign direct investment within KwaZulu-Natal (KZN) and the

country as a whole.

Today DTP is the province’s foremost development and an integral component of the National

Government’s commitment to significant levels of infrastructural expansion across the whole of

South Africa. It is becoming a highly competitive business operating environment and forms the

foundation of an emerging airport city (or aerotropolis ) based on a comprehensive and all-

encompassing 60-year Master Plan .

Strategically situated between the largest sea ports in Southern Africa - Durban and Richards Bay -

DTP opens the door to new global business and trade opportunities, ultimately creating vital

employment opportunities and stimulating economic growth provincially and further afield. DTP is

clearly critical to the realization of the Province’s 2030 Vision of becoming the global trade

gateway to the African continent and the rest of the world. DTP is the only facility on the African

continent that combines an international airport, a dedicated cargo terminal, warehousing,

offices, a retail sector, hotels and an agricultural area. DTP has four main development zones

(part of Phase 1 of its 60-year Master Plan) - i.e. (1) Dube TradeZone, (2) Dube City, (3) Dube

Cargo Terminal and (4) Dube AgriZone - central to which is KSIA, and capable of attracting a

diverse range of investors, operators, tenants and users.

1 KSIA is owned and operated by Airports Company South Africa (ACSA). In terms of the Airports Company Act (No 44

of 1993), Airports Company South Africa is mandated to undertake the acquisition, establishment, development,

provision, maintenance, management, control or operation of any airport, any part of any airport or any facility or

service at any airport normally related to the functioning of an airport. ACSA provides Airport Statistics per international

and regional airport in its 2013 Integrated Report (Integrated Report - Forward thinking, embracing change, 2013) i.e. (1)

passenger throughput, (2) total air traffic movements, (3) international flight departures, (4) hourly runway capacity, (5)

annual passenger handling capacity, and (6) public parking bays.

2 An aerotropolis is an urban form whose layout, infrastructure and economy are centered on an airport. Airports are

becoming key nodes in global production and enterprise systems offering them speed, agility, and connectivity. They

are also powerful engines of local economic development, attracting aviation-linked businesses of all types to their

environs. These include, among others, time-sensitive manufacturing and distribution facilities; hotel, entertainment,

retail, convention, trade and exhibition complexes; and office buildings that house air-travel intensive executives and

professionals.

3 See Appendix A for an overview of the 60-Year Master Plan

4 KZN Provincial Planning Commission, Provincial Growth and Development Strategy, August 2011


8

o Dube TradeZone: At Dube TradeZone, freight forwarders and shippers are located in a

single facility, with airside access and specialised industrial land for development. This 26-

hectare site occupies prime, fully-serviced airside real estate and is ideal for new-

generation warehousing, manufacturing, assembling, air-related cargo distribution, high-

tech aerospace services, automotive industries, clothing, textiles and cold storage

activities. Dube TradeHouse, where a number of well-known freight forwarders and

shippers are based, enjoys direct connection with the adjacent Dube Cargo Terminal via

an elevated cargo conveyor-system AirBridge.

o Dube City: Dube City, Africa’s first purpose-planned airport city, follows sustainable

development principles, creating an ultra-modern urban “green” hub. This world-class

business and leisure area’s first phase, comprising 12 hectares, is divided into 10 blocks

providing 45 level, fully-serviced stands. Proposed land use includes a mix of hotel,

conference, entertainment, retail and knowledge-intensive activities. Dube City is

supported by fully-reticulated fibre-optic cabling from which all tenants may access voice

and data services at competitive rates.

o Dube Cargo Terminal: The Dube Cargo Terminal building, a 14 000m² state-of-the-art

facility is one of the most secure of its kind in Africa. Owned and operated by Dube

TradePort Corporation (DTPC), this is one of the most technologically advanced cargo

facilities in the world. Dube Cargo Terminal has an enviable security track-record,

maintaining an impressive 0% cargo loss since inception.

o Dube AgriZone: Dube AgriZone is Africa’s first integrated perishables supply chain and

hosts this continent’s largest climate-controlled growing area under glass. It focuses on the

production of short shelf-life vegetables and cut flowers requiring immediate post-harvest

airlifting. Dube AgriZone comprises greenhouses, packhouses, a distribution centre, a

nursery and Dube AgriLab - a highly specialised tissue culture laboratory - all off-set by a

range of “green” initiatives, inclusive of rainwater harvesting, solar energy usage, on-site

waste management and the growth of indigenous plants for site-wide rehabilitation

activities.

Servicing each of the above is Dube iConnect, world-class IT and telecommunications platform

which digitally links precinct-based businesses with each other and the rest of the world. It

provides superior service solutions, including voice and broadband, virtual computing platforms,

secure virtual storage, back-up and recovery, IT security, hosted call-centre services, media

services and dark fibre.

Also on offer is Dube AiRoad, providing seamless air-to-road and road-to-air logistics for the

making of time-critical deliveries. Dube AiRoad is a dedicated, time-sensitive logistics fleet that will

collect cargo and deliver it straight to Dube Cargo Terminal. It collects goods from and delivers to

areas as far afield as Maputo, Johannesburg and the Eastern Cape. Dube TradePort prides itself

on its dedicated and continuous quest for improved airfreight transport solutions, effectively

fulfilling customer needs in an ever-changing airfreight environment. This is a service offering

which is unique to Dube TradePort and Dube Cargo Terminal.

Rehabilitation and restoration of the environment is another important aspect of DTP. This is aimed

at offsetting the environmental impact of DTP’s developments. The Rehabilitation and Restoration

Project comprises the following components: short term rehabilitation (alien clearing and fauna


9

and flora species rescue) and restoration (alien clearing and planting/recreation). The project is

aimed at offsetting the environmental impact of DTP and KSIA Phase 1 build associated

developments, including Dube TradeZone, Dube City, access roads, etc., complying with the

Environmental Impact Assessment (EIA) completed in 2007 and the Record of Decision (RoD)

issued in 2008.

1.1.2 OVERVIEW OF DUBE TRADEPORT CORPORATION (DTPC)

DTP is Southern Africa’s premier air logistics platform and Dube TradePort Corporation (DTPC) is a

Schedule 3C public entity established by the KZN Provincial Government to :

Develop DTP (ensure the strategic planning, establishment, design, construction,

operation, management and control of DTP);

Undertake or invest in projects associated with DTP;

Facilitate economic growth in the Province through DTP (implement and give effect to

the Master Plan for the economic growth of the Province);

Attract long term investment to the Province (identify, develop, market and promote

investment opportunities at DTP); and

Facilitate export and import through DTP.

Noticeably DTPC plays a multi-faceted role to both enable and drive the development of the air

logistics business. On the one hand it serves as master developer of the precinct, guiding and

facilitating the appropriate uses of land for property developments, light manufacturing and

assembly, agricultural production and ensuring that infrastructure planning and development

keeps pace with growth. On the other hand DTPC plays the role of an investor aimed at enabling

strategic economic investments from the private sector that support volume growth and

international connectivity enhancing the competitive position of the provincial economy in the

global supply chain. The underlying commonality is the air logistics platform which facilitates the

flow of air cargo through Dube Cargo Terminal.

1.1.2.1 VISION

To become the leading global integrated and sustainable air logistics platform in Southern Africa

1.1.2.2 MISSION

To reposition KZN in the global supply chain through the enablement of new air services and

provision of state of the art facilities, an IT platform providing value added services, leading edge

spatial planning and facilitating the supply of products to export markets

1.1.2.3 STRATEGIC GOALS

DTPC’s strategic goals are as follows:

To maintain effective corporate governance and financial administration

To enable new air services to international and regional markets, and facilitate growth

of air cargo

To facilitate private sector investment on land controlled by DTPC

KwaZulu-Natal Dube TradePort Corporation Act, 2010 (Act No. 2 of 2010), Assented to on 18-08-2010.


10

To generate sustainable volumes of perishables in supporting the integrated air logistics

platform

To establish, enhance and operate an ICT platform that delivers value added services

To plan and enable the development of a sustainable airport city

To provide infrastructure and service the development needs of DTP

1.1.2.4 PROGRAMME STRUCTURE

The strategic goals drive the seven programmes of DTPC: Programme 1 - Administration;

Programme 2 - Cargo and Air Services; Programme 3 - Property; Programme 4 - AgriZone;

Programme 5 - Information Communication Technology (ICT); Programme 6 - Development

Planning and Infrastructure and Programme 7: DTP Special Economic Zone .

Realising the strategic importance associated with the proposed DTP Special Economic Zone (DTP

SEZ), DTPC is seeking to develop internal capacity around SEZ’s and now wish to identify DTP SEZ as

a separate programme in its APP (Programme 7: DTP SEZ). In the 2013/14 APP, it had been

indicated that planning and creating an enabling environment for the vision of the Dube

Aerotropolis included working closely with various stakeholders in acknowledgement of the

potential of the project to become a national SEZ (See Programme 6 of 2013/14 APP).

Programme 6’s involvement in a national SEZ steering committee assisted in exploring the

institutional arrangements pertaining to the zone, as well as influenced the demarcation of spatial

boundaries, incentive packages and the overall development model. However, it is envisaged

that a separate programme will be required within DTPC as the process towards establishing and

managing DTP SEZ unfolds.

1.1.3 OVERVIEW OF DTPC’S ANNUAL PERFORMANCE PLAN 2014/15

DTPC’s Annual Performance Plan for 2014/15 (APP 2014/15) was compiled in accordance with the

specifications of National Treasury as described in Framework for Managing Programme

Performance Information and Framework for Strategic Plans and Annual Performance Plans . This

ensures that the performance information provided in the document (APP 2014/15) is structured in

a manner that demonstrates clearly how DTPC uses available resources to deliver on its strategic

goals.

DTPC’s APP 2014/15 has three distinct parts as prescribed by National Treasury. Part A provides a

detailed overview of DTP and DTPC, while also considering the current state of economic affairs

locally and globally, DTPC’s performance delivery environment as well as its organizational

environment. Part B provides performance targets for the upcoming financial year in terms of

DTPC’s six programmes for the purpose of assessing the overall performance of each. Part C

details links with other relevant plans. Appendices are provided at the end of the document in so

far as they pertain to the main body of the document.

New programme introduced in the 2014/15 APP. New programme included to demonstrate DTPC’s commitment to

establishing and managing the DTP SEZ.

National Treasury, Framework for Managing Programme Performance Information, May 2007, ISBN 978-0-621-37152-9

National Treasury, Framework for Strategic Plans and Annual Performance Plans, August 2010


11

Take note that DTPC’s current 5-year strategic plan covers 2011/2012 to 2015/2016. In line with the

electoral cycle, a new 5-year strategic plan is scheduled to be compiled in 2014/2015. While

each Programme and Sub-Programme has provided targets for 2016/2017 in the tables to follow

below, these targets are indicative only and expected to change once the new strategic plan is

tabled.

1.1.3.1 ALIGNMENT WITH RELEVANT POLICIES AND STRATEGIES

APP 2014/15 has been aligned with a variety of national and provincial policies and strategies, as

well as other relevant plans, acts, speeches and strategies, including:

TABLE 1: RELEVANT LEGISLATION, POLICIES, STRATEGIES, AND OTHERS

LEGISLATION/ POLICY/ STRATEGY/

OUTCOME / OTHER CUSTODIAN DATE OF ISSUE TIMEFRAME

Constitution of the Republic of South Africa National Constitutional Assembly 18 December 1996 NA

Millennium Development Goals United Nations Development Programme

(UNDP)

Signed by 189

countries in

September 2000

2000 - 2015

Medium-Term Strategic Framework (MTSF) The Presidency July 2009 2009 - 2014

Twelve Outcomes of Government National Government

Cabinet Lekgotla

held from 20 to 22

January 2010

Aligned with

MTSF

New Growth Path (NGP) National Department of Economic

Development November 2010 2020

National Development Plan (NDP) National Planning Commission (NPC) (The

Presidency) August 2012 2030

Provincial Growth and Development

Strategy (PGDS) KZN Provincial Planning Commission (PPC) August 2011 2011 - 2030

Provincial Growth and Development Plan

(PGDP) KZN Provincial Planning Commission (PPC) September 2013 2011 - 2030

KZN DEDT Strategic Plan KZN Department of Economic

Development and Tourism September 2013 2013/14 - 2017/18

State of the Province Address Dr Zweli Mkhize 28 February 2013

Previous financial

year and

beyond

KZN Dube TradePort Corporation Act Provincial Legislature of KZN 21 October 2010 NA

DTPC Strategic Plan DTPC December 2011 2011/12 - 2015/16

DTPC is committed towards meaningfully contributing towards the realisation of the Province’s

strategic goals and objectives (contained in the KZN PGDS and PGDP). Case in point is DTPC’s

vision which is reminiscent of KZN’s 2030 vision to act as “a gateway to Africa and the world” .

DTPC is creating and maintaining an enabling environment for the development of DTP by

accelerating efforts to introduce new international and regional air services, facilitating air cargo

and passenger growth, promoting private sector investment in DTP and producing sustainable

volumes of perishables in support of this integrated air logistics platform.

DTPC’s role is to stimulate, facilitate and enable the growth of the air logistics supply chain and

secure the participation of private sector firms both locally and internationally to take advantage

of competitive offerings as users, as tenants, as investors and as service providers. This enables the

KZN 2030 Vision: By 2030 KZN will be a prosperous Province with a healthy, secure and skilled population, acting as a

gateway to Africa and the world


12

facilitation of sustainable job creation, economic development and private sector investment.

The creation of “more jobs for more people over a sustained time” is in fact the fundamental

challenge that the PGDS sets out to address and DTPC is ultimately committed to the creation of

sustainable employment opportunities.

Within this context, of the 7 strategic goals (see Appendix B) identified in the KZN PGDS, there are 3

(i.e. Strategic Goals 1, 4 and 5) that relate closely to DTPC’s efforts at DTP, and these are

presented below with their associated national outcomes (12 Outcomes of Government (See

Appendix C)), associated MTSF strategic priorities (See Appendix D) and associated MDGs (See

Appendix E).

TABLE 2: DTPC ALIGNMENT WITH PROVINCIAL STRATEGIC GOALS

PROVINCIAL

STRATEGIC

GOAL

SHORT

DESCRIPTION

ASSOCIATED

NATIONAL

OUTCOME

ASSOCIATED MTSF

STRATEGIC

PRIORITY

ASSOCIATED

MDG DTPC ALIGNMENT

Strategic

Goal 1:

Job

Creation

Expand Provincial

economic output

and employment

Decent

employment

through inclusive

economic growth

(Outcome 4 of

12)

Speeding up

growth and

transforming the

economy to

create decent

work and

sustainable

livelihoods

(Strategic Priority

1 of 10)

MDG 1,

MDG 2,

MDG 3,

MDG 8

DTPC is focused on job creation and

measures its impact on employment on

a continuous basis. Within the context

of DTPC’s core business activities, jobs

are created by increased domestic and

foreign investment (especially by the

private sector) and greater levels of

international trade (especially air cargo

to and from many international

markets).

Strategic

Goal 4:

Strategic

Infrastructure

To provide

infrastructure for

the social and

economic growth

and

development

needs of KZN

An efficient,

competitive and

responsive

economic

infrastructure

network

(Outcome 6 of

12)

Massive

programme to

build economic

and social

infrastructure

(Strategic Priority

2 of 10)

MDG 1,

MDG 3,

MDG 8

DTP is a catalyst for global trade and a

portal between KZN and the rest of the

world. It is the only facility in Africa that

brings together an international airport,

a cargo terminal, warehousing, offices,

a retail sector, hotels, and an

agricultural area - all supported by Dube iConnect, offering the most

advanced metro Ethernet network in

South Africa. DTP is set to enhance the

Province’s competitive edge in

transportation, freight logistics, and ICT.

Strategic

Goal 5:

Environmental

Sustainability

To reduce global

greenhouse gas

emissions and

create social-

ecological

capacity to

adapt to climate

change

Environmental

assets and

natural responses

that are well

protected and

continually

enhanced

(Outcome 10 of

12)

Sustainable

resource

management

and use

(Strategic Priority

9 of 10)

MDG 2,

MDG 3,

MDG 7

DTPC is committed to continuing its

genuine work towards sustainable

development by way of efforts to

minimise and prevent environmental

impact and degradation. Every effort is

made to significantly curb emissions

through the implementation of a range

of recognised “green” initiatives, all

designed to reduce the carbon

footprint of travellers, developers,

manufacturers, retailers, service

providers and others who use DTP

facilities or work at DTP.

The following table provides a general overview of the particular objectives and primary

indicators identified in the PGDP that relate specifically to DTP and the efforts of DTPC. The list of

objectives and indicators below is by no means exhaustive and only indicative of those that are of

particular interest from an alignment perspective.


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TABLE 3: DTPC ALIGNMENT WITH PROVINCIAL STRATEGIC OBJECTIVES AND PRIMARY INDICATORS

RELEVANT STRATEGIC GOALS RELEVANT STRATEGIC

OBJECTIVES RELEVANT PRIMARY INDICATORS

Strategic Goal 1:

Job Creation

Unleash agricultural potential

Total employment in the agricultural sector

Value of agricultural contribution to the provincial economy

Hectares of land under agricultural production

Enhance sectoral

development through trade

and investment

Total employment within all sectors excluding primary

agriculture

Total value of provincial economy excluding primary

agriculture

Strategic Goal 4:

Strategic Infrastructure

Development of airports Tonnage throughput at DTP cargo terminal (international)

Development of ICT

infrastructure

Minimum broadband speed available within the Province

Number of ICT Infrastructure Nodes

Strategic Goal 5:

Environmental Sustainability

Increase productive use of

land Hectares of land rehabilitated annually

Advance alternative energy

generation and reduce

reliance on fossil fuels

Units of energy produced commercially through alternative

energy generation

Units of energy saved through energy efficiency

interventions

In compiling the APP 2014/15, DTPC was also cognizant of especially KZN DEDT’s Strategic Plan for

2013/14 to 2017/18 (2nd Draft Version) . KZN DEDT identified 4 strategic goals and DTPC is aligned

to at least 2 thereof i.e.:

TABLE 4: DTPC ALIGNMENT WITH KZN DEDT’S STRATEGIC PLAN

RELEVANT STRATEGIC GOALS RELEVANT STRATEGIC OBJECTIVES

Goal One: Lead and Co-ordinate Integrated

Economic Planning and Development

To champion spatial economic development initiatives (SEZs)

To drive growth of the KZN provincial economy

To forge strategic partnerships for development of provincial economy

Goal Two: Facilitate Sustainable and Inclusive

Economic Growth to Ensure Job Creation

To facilitate creation of new markets

To enhance sector and industrial development through Trade, Investment and

Exports Logistics, ICT, Manufacturing, Green economy, agri-business, Tourism,

Creative Industries, Maritime, Aerotropolis, Aviation)

To develop the knowledge base to enhance the knowledge economy

Development of ICT infrastructure

To investigate and develop viable alternative energy generation options

It is against this backdrop (strategies, policies and objectives outlined above) that DTPC has

identified the following 3 key delivery areas:

Competitiveness

Job Creation

Economic Development

Released September 2013


14

Performance indicators and targets associated with these key delivery areas are provided in

DTPC’s Strategic Plan for 2011/12 to 2015/16 and, unless otherwise (or earlier) specified, DTPC’s

APP 2014/15 is aligned therewith.

1.2 SITUATIONAL ANALYSIS

The following provides an overview of the broader economic and socio-economic context within

which DTPC operates. DTPC is focused on job creation and economic development. In terms of

DTPC’s core business activities, these are achieved by increased domestic and foreign investment

(especially by the private sector) and greater levels of international trade (especially air cargo to

and from many international markets). Both investment and trade are dependent on robust (and

prolonged) growth in local and international markets. Global economic conditions - especially in

advanced economies - have been anything but robust, and largely uncertain. Notwithstanding,

DTPC has remained committed to stimulating, facilitating and enabling growth of the air logistics

supply chain, taking advantage of DTP’s competitive edge, i.e. its proximity to KSIA, Dube Cargo

Terminal and other state-of-the-art zones within the DTP precinct.

1.2.1 GLOBAL ECONOMY

Global economic growth is expected to remain lackluster in 2013 averaging 2.9% by year-end

(based on forecasts by the International Monetary Fund (IMF) ). However, 2014 is forecast to see

world output growth of 3.6% , with advanced economies averaging 2.0% and growth in emerging

market (and developing) economies measuring just above 5.0%. While growth in emerging

markets is clearly expected to exceed its advanced counterparts, it has slowed down in recent

times and expectations are that it will remain below the elevated levels seen during the 2000s. In

fact, according to the IMF, emerging market and developing economy growth rates are down 3

percentage points from levels in 2010, with Brazil, China , and India accounting for about two-

thirds of the decline. Notwithstanding, global economic activity is expected to strengthen

somewhat as a result of output expansion in advanced economies - mainly the United States.

Focusing on Sub-Saharan Africa, economic growth has remained strong and is expected to

gradually speed up in coming years most notably from investment and exports , as well as activity

in construction, mining and agriculture. Output in Sub-Saharan Africa expanded by 5.1% in 2012

and is expected to accelerate moderately in 2013 and 2014. The IMF predicts real Gross Domestic

Product (GDP) growth of 5.3% in 2013 and 5.7% in 2014 .

IMF: World Economic and Financial Surveys, World Economic Outlook: Transitions and Tensions, October 2013, ISBN

978-1-48434-589-0 (PDF)

According to the IMF, global activity is expected to strengthen moderately but the risks to the forecast remain to the

downside.

According to the IMF, growth in China is slowing, which will affect many other economies, notably the commodity

exporters among the emerging market and developing economies. China should provide a permanent boost to

private consumption spending to rebalance the growth of demand away from exports and investment.

According to the IMF, investments in export-oriented sectors will be an important driver of growth in future.

IMF: World Economic and Financial Surveys, Regional Economic Outlook: Sub-Saharan Africa - Building Momentum in

a Multi-Speed World, May 2013, ISBN-13: 978-1-48436-515-1


15

According to the World Trade Organization (WTO), world trade growth fell to 2.0% in 2012 from 5.2

per cent in 2011, and remained subdued in the first part of 2013. The significant decline was due

mainly to slow growth in advanced economies especially in Europe where uncertainties over the

future of the euro abounded. This resulted in low export growth in advanced as well as emerging

market and developing economies. The IMF expects world trade volumes (goods and services) to

grow by 2.9% in 2013 and 4.9% in 2014.

1.2.2 SOUTH AFRICAN ECONOMY

In contrast to robust growth in the Sub-Saharan region as a whole, recovery after the global

economic downturn has been relatively sluggish in South Africa. South Africa is more exposed to

weakness in the world economy particularly in Europe, a major market for its high-value exports.

According to the South African Reserve Bank (SARB), the country’s growth projection for 2013 is

approximately 2.0% after a shaky start in the first quarter of the year. Following a GDP growth rate

(annualized) of 0.9% in the first quarter of 2013, the pace accelerated to 3% in the second, due

mainly to a notable improvement in the secondary sector (especially manufacturing). According

to the SARB, real output in the primary sector (agriculture and mining) contracted, while growth in

the tertiary sector (trade, transport, finance, community services) slowed marginally.

Underlying the relatively sluggish economic growth outlook is the low growth in real gross fixed

capital formation, which accelerated to 2.7% in the second quarter of 2013 from 2.5% in the first.

Fixed capital formation by private business comprises the majority of gross fixed capital formation

and gathered considerable momentum in the second quarter of 2013 due to increased

investment activity by the agricultural, mining and manufacturing sectors - according to the SARB.

In contrast, real fixed capital formation by public corporations contracted by 2% (annualized) in

the second quarter of 2013 due to a series of unplanned delays on existing projects, as well as

sluggish uptake of new projects. Capital expenditure by the general government expanded at a

rate of 3.1% (annualized) in the second quarter of 2013, with spending focused on roads and

transport, utilities, human settlements, education and health.

1.2.3 ECONOMY OF KWAZULU-NATAL

With the seaports of Richards Bay and Durban, as well as the DTP (home of KSIA) connecting KZN

to the rest of the world, the Province is uniquely positioned to become South Africa’s global

gateway. It currently contributes 17.0% to the national economy, and has the lowest strict

unemployment rate, and the second biggest labour force in the country . Moreover, the

Province has the highest export propensity, as well as the highest level of industrialization in the

country.

According to the KZN Business Barometer published in August 2013 , KZN’s economy is still showing

some potential for growth and grew 5.1% year-on-year. Growth was driven mainly by the tertiary

sector (especially transport), while the construction index contracted by 25.4%. The tertiary

industry indeed dominates the KZN economy and accounts for roughly 60% of provincial GDP

(2012).

KwaZulu-Natal Provincial Government, Department: Economic Development & Tourism, Ezomnotho - The Kwazulu-

Natal Quarterly Economic and Statistical Overview, 1st Quarter 2012

KwaZulu-Natal Business Barometer is compiled by Mike Schüssler of Economists.co.za for KZN DEDT, KZN Treasury and

Trade and Investment KZN.


16

According to the KZN Investment Monitor published in June 2013, is appears that fixed investment

in KZN has slowed down. Investment in buildings in KZN fell 7.7% year-on-year, the worst

performance since December 2011, mainly due to a 62% drop in the completion of non-

residential buildings, which seems to indicate that there are no large investments being made in

commercial buildings .

1.3 PERFORMANCE DELIVERY ENVIRONMENT

DTPC operates within the ambit of air transport with specific reference to air cargo, international

connectivity and property development around KSIA. DTPC is inextricably linked to KSIA and as

such, DTPC’s role is to add value to customers in leveraging the benefits of being in close proximity

to the airport.

The value that is created is to provide highly efficient, state-of-the-art and seamless logistics

platform which is unparalleled in Southern Africa. The platform is geared towards the facilitation

and expansion of air-dependent supply chains i.e. goods where timeous delivery of high-value

inputs via air freight is critical to efficiency and global competitiveness. Local suppliers are thus

afforded an opportunity to participate in global value chains where they (the local suppliers)

have a competitive advantage due to their location at DTP. The value to the private sector is

providing a platform for air cargo-reliant investors to provide warehousing facilities, light

manufacturing, offices and other airport related structures that complement the air cargo

strategy.

DTPC’s performance delivery environment clearly commands (1) increased competitiveness, (2)

job creation and (3) economic development and these are reflected as DTPC’s Key Delivery

Areas. Once again these relate to the KZN PGDS closely with specific reference to Provincial

Strategic Goals 1, 4 and 5, as well as the strategic goals set out in KZN DEDT’s Strategic Plan

mentioned above. See Appendix F for a detailed exposition of how objectives defined in the KZN

PGDS align with DTPC’s Key Delivery Areas - which in turn are in line with its vision and mission.

TABLE 5: DTPC KEY DELIVERY AREAS - PROGRESS-TO-DATE AND PROJECTED DELIVERY TARGETS FOR THE MTEF PERIOD

KEY DELIVERY AREAS 2011/12

(ACTUAL)

2012/13

(TARGET)

2012/13

(ACTUAL)

2013/14

(TARGET)

2014/15

(TARGET)

2015/16

(TARGET)

2016/17

(INDICATIVE

TARGET)

KEY DELIVERY AREA 1: COMPETITIVENESS

No. of international/regional

routes secured 0 2 1 2 2 2 2

Tonnage throughput from

Dube Cargo Terminal -

International (tonnes)

5 060 12 000 -

16 800 6 123

6 537 -

6 983

7 141 -

7 180

7 856 -

7 898

8 484 -

8 530

Quoted from KwaZulu-Natal Investment Monitor that is compiled by Mike Schüssler of Economists.co.za for KZN DEDT,

KZN Treasury and Trade and Investment KZN.

Targets indicative only and expected to change once DTPC’s new 5-year strategic plan is tabled in 2014/15. DTPC’s

current 5-year strategic plan covers 2011/2012 to 2015/2016.


17

Volume of produce at Dube

AgriZone (tonnes) 1 627 1 400 2 307 2 500 4 000 5 000 6 500

KEY DELIVERY AREA 2: JOB CREATION

No. of

direct jobs

created

on-site

(excludin

g KSIA)

Temporary

(during

construction)

372 700 114 550 200 400 420

Permanent

(during

operation)

270 200 295 280 175 165 150

KEY DELIVERY AREA 3: ECONOMIC DEVELOPMENT

Private sector investment

committed per annum

(based on signed

agreements)

R300

million

R65

million

R225

million

R100

million

R105

million

R110

million

R120

million

1.3.1 NOTES ON KEY DELIVERY AREAS

Unless otherwise stated below, targets associated with the key delivery areas set out above are

unchanged from the 2013/14 APP.

1.3.1.1 COMPETITIVENESS

1.3.1.1.1 Volume of Produce at Dube AgriZone

Targets were adjusted upwards based on past performance of Dube AgriZone. In the 2013/14

APP, the following targets were set:

2014/15: 3 750

2015/16: 4 500

These have subsequently been adjusted to:

2014/15: 4 000

2015/16: 5 000

1.3.1.2 NUMBER OF DIRECT JOBS CREATED ON-SITE

Targets were adjusted downwards due to on-going delays in EIA processes. The majority of

construction projects planned for 2013/14 are currently on-hold pending outcomes of EIAs

submitted. This has resulted in DTPC reducing its projections of temporary as well as permanent

jobs that can potentially be created site-wide.

Targets were adjusted downwards as follows (compared to APP 2013/14);

Temporary jobs ~

2014/15 = 200 instead of 400

2015/16 = 400 instead of 500

2016/17 = 420 instead of 520

Permanent jobs ~

2014/15 = 175 instead of 350


18

2015/16 = 165 instead of 330

2016/17 = 150 instead of 300

1.4 ORGANISATIONAL ENVIRONMENT

DTPC is controlled by its board which serves as the Accounting Authority and is accountable to

the Member of the Executive Committee (MEC) for KZN Department of Economic Development

and Tourism (DEDT) in his capacity as the Executive Authority. DTPC is structured as follows:

KZN Provincial Government

KZN DEDT

DTPC Board

Chief Executive Officer (CEO)

Executive Committee (Exco)

The DTPC Board comprises individuals and professionals from both the private and public sector.

In terms of the KZN DTPC Act, board members are elected by the Executive Authority. DTPC’s

Board is structured in such a way as to create a diverse mix of skills and experience relevant to the

business of the organisation and the diverse environment in which it operates, while also ensuring

effective inter-governmental co-operation and collaboration.

1.5 REVISIONS TO LEGISLATIVE AND OTHER MANDATES

The organizational transition from a Non-Profit Company (Section 21 Company) to a legislated

Schedule 3C Provincial Public Entity occurred in August 2013. Administrative challenges had

delayed the winding-up of the Non-Profit Company since 2011/12. However, on September 30th,

2011, Schedule 3 of Part C of the Public Finance Management Act (PFMA) was updated to

include DTPC. Whereas the Section 21 Company was guided by the Companies Act, the effect

of the listing drew the organization into the ambit of the PFMA, related Treasury regulations, and

National and Provincial guidelines. The governance requirements in terms of procurement,

financial management, internal control, risk, reporting, board and audit committee structures, and

financing are clearly stipulated and have imposed clear parameters by which the organization is

required to be managed.

The design, construction, operation and management of DTPC is being carried out in

accordance with S24 (iii) of the Constitution which guarantees ecologically sustainable

development and use of natural resources while promoting justifiable economic and social

development.

The Dube TradePort Corporation Act (DTPCA) provides for the establishment of DTPC. The DTPCA

requires that the Board of DTPC ensures the strategic planning, establishment, design,

construction, operation, management and control of DTP. It should give effect to the Master Plan

for the economic growth of DTP and the Province by identifying, marketing and promoting

investment opportunities not only in DTPC, but also in the Province. Furthermore it should facilitate

export and import opportunities through DTP.


19

2 REVIEW OF 2014/15 BUDGET AND MTEF ESTIMATES

2.1 EXPENDITURE ESTIMATES

TABLE 6: REVIEW OF 2014/2015 BUDGET AND MTEF ESTIMATES

ProgrammeADJUSTED

APPROPRIATION

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Administration 39,435,342 47,149,924 (18,224,887) 23,807,339 60,088,827 69,589,296 86,891,263

Cargo & Air serv ices 67,705,888 123,582,451 68,147,704 71,638,791 61,163,406 64,145,345 56,987,915

Property 317,895,732 186,638,752 81,055,148 34,528,418 37,511,675 28,080,139 21,103,603

AgriZone 328,490,765 318,958,572 123,577,715 22,139,483 20,740,614 20,344,603 19,717,771

ICT 12,610,920 91,855,868 24,277,410 24,853,226 27,263,180 29,675,923 30,885,972

Dev elopment Planning & Infrastructure 69,189,205 24,778,833 128,674,051 398,434,743 423,607,298 444,217,694 475,237,476

Vat

SUBTOTAL 835,327,852 792,964,400 407,507,141 575,402,000 630,375,000 656,053,000 690,824,000

Revenue - 19,764,361 100,521,397 102,976,495 90,768,326 97,925,008 108,610,152

Economic Classification

Current payments 132,653,429 192,768,126 232,362,974 263,488,568 311,831,988 325,245,304 346,953,675

Compensation of employees 21,806,039 33,997,185 51,624,857 83,828,012 97,579,004 103,163,294 109,660,335

Goods and services of which:

Communication 2,694,190 - - - - - -

Computer serv ices 429,349 396,667 1,507,185 1,917,678 2,931,484 3,501,873 3,688,244

Consultants, contractors and special serv ices 44,367,035 64,832,378 53,203,541 58,283,382 67,674,097 63,747,505 61,524,452

Maintenance Repairs and running costs 44,972,766 75,653,423 89,216,388 92,047,483 101,668,700 108,593,646 116,411,715

Operating Leases 2,768,756 803,401 25,110,461 335,114 482,871 511,843 538,971

Trav el and subsistence 2,665,582 2,226,068 913,937 3,009,447 3,007,927 3,251,760 3,459,110

Adv ertising 12,949,711 13,618,718 10,191,115 19,432,272 32,343,300 35,861,148 44,698,647

Training - 1,240,286 595,491 4,635,180 6,144,604 6,614,234 6,972,201

TRANSFERS AND SUBSIDIARIES TO:

PAYMENT FOR CAPITAL ASSETS 702,674,423 619,960,635 275,665,564 414,889,927 409,311,338 428,732,704 452,480,477

Building and other fixed structures 669,598,697 448,344,141 168,478,635 26,850,000 276,520,000 370,496,147 370,700,000

Machinery and equipment 33,075,726 170,083,195 51,728,542 37,177,800 24,173,300 28,754,098 22,515,749

Cultiv ated assets - 25,161 - - - - -

Software and other intangible assets - 1,508,139 1,324,039 20,370,000 8,800,000 4,935,960 4,972,666

Land and subsoil assets - - 54,134,348 330,492,127 99,818,038 24,546,499 54,292,062

TOTAL 835,327,852 792,964,400 407,507,141 575,402,000 630,375,000 656,053,000 690,824,000

MEDIUM TERM EXPENDITURE ESTIMATEAUDITED OUTCOMES

2.2 RELATING EXPENDITURE TRENDS TO STRATEGIC OUTCOME ORIENTATED GOALS

Two thirds of DTPC’s budget has been allocated to Development, Planning and Infrastructure. This

is in line with DTPC’s strategic goal of developing a sustainable airport city and providing the

infrastructure needed to facilitate private sector investment in the precinct.

The budget needs of the four programmes with revenue generating capabilities (Cargo & Air

Services, Property, AgriZone and ICT) is gradually declining over the MTEF as operating revenues

are set to increase with the increased development of the precinct and as the business element

of these programmes becomes more established.

Cargo & Air Services remains a significant focus, with 9.7% of the overall budget allocated to this

programme, as DTPC strives to secure new air services through KSIA and to continually improve


20

and maintain the high standards of aviation security achieved at the Dube Cargo Terminal to

date.

The increased allocated to the Administration programme (9.5% in 2014/15) is due to the

expected decline in interest revenues as the committed funds held in trust accounts is utilized.


21

PART B: PROGRAMME AND SUB-PROGRAMME PLANS

In order to efficiently carry out its mandate, the DTPC currently operates a 7-programme structure.

The seven programmes and their associated sub-programmes are summarised below.

TABLE 7: DTPC PROGRAMME STRUCTURE

PROGRAMMES SUB-PROGRAMMES PER PROGRAMME

1. ADMINISTRATION

1.1 OFFICE OF THE CHIEF EXECUTIVE OFFICER (CEO)

1.2 FINANCIAL ADMINISTRATION

1.3 CORPORATE SERVICES

1.4 MARKETING

2. CARGO AND AIR

SERVICES

2.1 CARGO OPERATIONS

2.2 AIR SERVICES

2.3 AIRSIDE

3. PROPERTY 3.1 COMMERCIAL

3.2 OPERATIONS

4. DUBE AGRIZONE

4.1 DUBE AGRIZONE SERVICES

4.2 DUBE AGRIZONE SUSTAINABLE FARMING INITIATIVES

4.3 TISSUE CULTURE FACILITY

4.4 LANDSCAPING AND REHABILITATION

4.5 DUBE AGRIZONE EXPANSION

5. INFORMATION

COMMUNICATION

TECHNOLOGY (ICT)

5.1 COMMERCIAL

5.2 OPERATIONS

6. DEVELOPMENT PLANNING

AND INFRASTRUCTURE

6.1 PLANNING

6.2 ENVIRONMENT

6.3 INFRASTRUCTURE

6.4 DEVELOPMENT

7. DTP SPECIAL ECONOMIC

ZONE SUB-PROGRAMMES TO BE CONFIRMED

Previously (see the 2013/14 APP), DTPC’s strategic goals and associated strategic objectives drove

six programmes of DTPC: Programme 1 - Administration (including the Office of the Chief

Executive Officer (CEO)); Programme 2 - Cargo and Air Services; Programme 3 - Property;

Programme 4 - AgriZone; Programme 5 - Information Technology and Communication (ITC);

Programme 6 - Development Planning and Infrastructure. However, realising the strategic

importance associated with DTP SEZ, DTPC is seeking to develop internal capacity around SEZ’s

and now wish to identify DTP SEZ as a separate programme in its APP (Programme 7: DTP SEZ).

Take note that DTPC’s current 5-year strategic plan covers 2011/2012 to 2015/2016. In line with the

electoral cycle, a new 5-year strategic plan is scheduled to be compiled in 2014/2015. While

each Programme and Sub-Programme has provided targets for 2016/2017 in the tables to follow

below, these targets are indicative only and expected to change once the new strategic plan is

tabled.


22

3 PROGRAMME 1: ADMINISTRATION

Programme 1: Administration supports the six other programmes that make up DTPC, which in turn

focus on the development and operationalisation of DTP and related activities - with a view to

create jobs, mobilise private sector investment, and increase competitiveness. Backing to these

five operational programmes takes many forms including strategic direction, integration and co-

ordination, financial and budgetary support, performance monitoring and evaluation,

occupational health and safety, quality management, information management, human

resources management and development, marketing, and communication services. Due to the

transversal nature of Administration, efficient and effective operation thereof is critical to ensure

that DTPC’s strategic plan remains relevant, is well-implemented and effectively monitored. The

Administration Programme consists of administrative staff and seasoned professionals at various

hierarchical levels within the programme. The staff turnover rate of these seasoned professionals is

monitored to ensure retention of valuable institutional knowledge.

Sub-Programme 1.1 Office of the CEO: The Office of the CEO provides strategic direction and

leadership ensuring alignment across all operational programmes; is responsible for the effective

management of DTPC and the implementation of strategy, policy, and directives of the Board;

also responsible for performance monitoring including the compilation of the APP; economic and

commercial research to support decision-making and planning across all operational

programmes; and internal ICT governance.

Sub-Programme 1.2 Financial Administration: This sub-programme provides supply chain

management, contract management, financial management, reporting and budgetary support

to all programmes within DTPC in a transparent, accountable manner as envisaged by the PFMA.

It is also responsible for providing management and financial reports which are valid, accurate

and complete by ensuring that sound internal controls and financial processes are developed,

implemented and maintained in a manner that ensures compliance with the PFMA and Treasury

Regulations.

Sub-Programme 1.3 Corporate Services: Corporate services encompass human resources

management and development, occupational health and safety, quality management,

information management, internal communication and corporate social investment (CSI).

Sub-Programme 1.4 Marketing: All brands and sub-brands need to be developed within the

context of the: DTP Brand Manual, 3-year Marketing Strategy, Brand Values & Communications

Strategy, and Marketing Operations Plan. This is in order to increase brand awareness, build

confidence with clients, tenants and investors and to increase market share. The marketing sub-

programme focuses on promoting project awareness through specific marketing initiatives and

building the Dube TradePort brand. It is effectively the “face” of DTPC to the stakeholders and the

larger community.


23

TABLE 8: PROGRAMME 1 - STRUCTURE, GOAL AND OBJECTIVES

PROGRAMME 1: ADMINISTRATION

Strategic goal: To maintain effective corporate governance and financial administration

SUB-PROGRAMME 1.1:

OFFICE OF THE CEO

Strategic objectives:

To provide strategic direction and leadership to DTPC

To secure beneficial partnerships for DTPC

To promote sound corporate governance to DTPC and its Board

SUB-PROGRAMME 1.2:

FINANCIAL

ADMINISTRATION

Strategic objective:

To provide effective and transparent financial management systems

SUB-PROGRAMME 1.3:

CORPORATE SERVICES


To effectively manage human resource recruitment, training and

development

SUB-PROGRAMME 1.4:

MARKETING


To facilitate and manage the development of the DTP brand

and sub-brands in the market

3.1 STRATEGIC OBJECTIVE ANNUAL TARGETS FOR 2014/15

TABLE 9: PROGRAMME 1 ADMINISTRATION - STRATEGIC OBJECTIVES AND KEY PERFORMANCE INDICATORS

KEY PERFORMANCE

INDICATOR

5-YEAR

STRATEGIC

PLAN

TARGET

AUDITED/ACTUAL

PERFORMANCE

ESTIMATED

PERFORMANCE MEDIUM-TERM TARGETS

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

SUB-PROGRAMME 1.1: OFFICE OF THE CEO

Strategic objective - To provide strategic direction and leadership to DTPC

1.1 Achievement

of APP targets 85% 67% 82% 79% 85% 85% 85% 85%

Strategic objective - To secure beneficial partnerships for DTPC

1.2

No. of

partnerships

secured

8 n/a 2 1 2 2 2 2

Strategic objective - To promote sound corporate governance to DTPC and its Board

1.3

Board

Evaluation:

Measure of

effectiveness

Effective n/a - new indicator Good Good Good Good Good

SUB-PROGRAMME 1.2: FINANCIAL ADMINISTRATION

Strategic objective - To provide effective and transparent financial management systems

1.4 Audit opinion:

External audit Unqual. Unqual. Unqual. Unqual Unqual. Unqual. Unqual. Unqual.

SUB-PROGRAMME 1.3: CORPORATE SERVICES

Strategic objective - To effectively manage human resource recruitment, training and development


24

1.5

No. of vacant

positions as %

of total staff

requirement

20% n/a - new indicator 7.7% 10% 8% 7% 7%

1.6

%

implementati

on of DTPC

Training and

Development

Plan

(cumulative)

80% n/a 60% 61% 70% 80% 80% 90%

SUB-PROGRAMME 1.4: MARKETING

Strategic objective - To facilitate and manage the development of the DTP brand and sub-brands in the market

1.7 % increase in

brand value

15% from

baseline

2010/2011 =

Draft brand

manageme

nt tool was

developed

2011/2012

= Tool

created

and

approved.

Baseline

establishe

d

7.3%

from

baseline

10% from

baseline

15%

from

baselin

e

15%

from

baselin

e

15%

from

baselin

e

3.2 PROGRAMME PERFORMANCE INDICATORS AND ANNUAL TARGETS FOR 2014/15

TABLE 10: PROGRAMME 1 ADMINISTRATION - PROGRAMME PERFORMANCE INDICATORS PER SUB-PROGRAMME

PROGRAMME

PERFORMANCE

INDICATOR (PPI)

AUDITED/ACTUAL

PERFORMANCE

ESTIMATED


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

SUB-PROGRAMME 1.1: OFFICE OF THE CEO

1.8

% complete of

quarterly

assessments

100% 100% 100% 100% 100% 100% 100%

1.9

No. of reports

(APR; AR & QPR)

submitted on

time

6 6 6 6 6 6 6

1.10

%

implementation

of ICT

Governance

Framework

(cumulative)

n/a - new

indicator 74%

70%

progress

80%

progress

80%

progress

90%

progress

SUB-PROGRAMME 1.2: FINANCIAL ADMINISTRATION

1.11

% of prior period

report items

(external audit

report) resolved

prior to

commencement

of audit

n/a - new

indicator 86% 90% 90% 90% 90%

SUB-PROGRAMME 1.3: CORPORATE SERVICES


25

1.12 Number of CSI

projects

n/a - new

indicator 4 2 2 2 2

1.13

Number of

apprenticeships

and internships

n/a - new indicator 10 10 15

SUB-PROGRAMME 1.4: MARKETING

1.14

No. of successful

campaigns

implemented

n/a - new

indicator 12 10 10 10 10

1.15

No. of slots

occupied on the

electronic

billboards

n/a - new

indicator 13 50 50 50 50

1.16

No. of activities

developed and

implemented to

support the

External Business

Communication

channels

n/a - new

indicator 12 9 11 11 11

1.17 % increase in

website hits

n/a - new

indicator

36.4%

from

baseline

10% from

baseline

15% from

baseline

15% from

baseline

15% from

baseline

3.3 KEY ACTIVITIES FOR 2014/15

In order to achieve the strategic objectives of each sub-programme, the focus during the 2014/15

financial year will be on the following key activities:

Office of the CEO

o Identify suitable potential partnerships

o Investigate and assess viability

ITGC:

a. Finalise ITGC governance strategy

b. Implement and monitor ITGC governance

Compliance/Governance:

a. Develop and implement compliance framework

b. Continue to embed effective Enterprise Risk Management process

Financial Administration

o Implement an automated SCM environment

New indicator developed to enhance reporting on performance information. It demonstrates DTPC’s commitment to

human resource development with specific reference to the promotion of youth skills development and life-long

learning (as per Provincial Strategic Goal 2 described in the KZN PGDP). The intention is to create opportunities for

graduates to acquire practical work experience and competencies to increase their employability.


26

o Implement an electronic contracts monitoring system

o Implement RFID tracking system for fixed assets

Corporate Services

o Human resources

a. Implement effective talent acquisition strategy to ensure human resource capacity

to achieve Strategic Objectives

b. Implement key talent retention initiatives through the DTPC Retention and Learning

and Development Strategies

c. Facilitate organisational development initiatives to create a conducive and healthy

corporate culture

d. Implement a Health and Safety Information System to support management

programmes to address hazards and risk and safety audits

o SHEQ

a. Continuously focus on improving the EE demographic profile of DTPC and enhance

BBBEE accreditation levels

b. Broad based implementation of the DTPC Corporate Social Investment Strategy

c. Implement an organisational quality management system

d. Implement an employee wellness programme

Marketing

o Increase awareness and understanding of DTPC within defined target audiences

o Create a perceived sense of activity and scale that engenders confidence in the target

audience

o Build confidence and volume in DTPC’s divisions

a. Increase awareness of the distinguishing attributes of Dube Cargo Terminal

b. To raise the profile of investment opportunities in Dube City and Dube TradeZone

c. Build an understanding of Dube iConnect offerings

d. Build an understanding of Dube AgriZone’s facilities, business and services

o Promote and sell space on the Electronic Billboards

o Develop, implement and monitor marketing activities and operations to support the DTP

external business communication

3.4 QUARTERLY TARGETS FOR 2014/15

The following table reflects the programme and sub-programme performance indicators. In order

to realise the strategic objectives detailed in the strategic plan, the performance indicators used

to measure the achievement of strategic objectives have also been included:

TABLE 11: PROGRAMME 1 ADMINISTRATION - QUARTERLY TARGETS FOR 2014/15

PERFORMANCE INDICATOR SUB-

PROGRAMME

REPORTING

PERIOD

ANNUAL

TARGET

2014/15

QUARTERLY TARGETS

1st 2nd 3rd 4th

1.1 Achievement of APP

targets

Office of the

CEO Annual 85% To be measured in the 4th Quarter


27

1.2 No. of partnerships

secured

Office of the

CEO Annual 2 To be measured in the 4th Quarter

1.3 Results of Board

evaluation

Office of the

CEO Annual Good To be measured in the 4th Quarter

1.4 Audit opinion: external

audit

Financial

Admin Annual Unqualified To be measured in the 2nd Quarter

1.5

No. of vacant positions as

% of total staff

requirements

Corporate

Services Bi-Annual 8% 8% 8%

1.6

% implementation of

DTPC training and

development plan

Corporate

Services Annual 80% To be measured in the 4th Quarter

1.7 % increase in brand value Marketing Annual 15% from

baseline To be measured in the 4th Quarter

1.8 % complete of quarterly

assessments

Office of the

CEO Quarterly 100% 100% 100% 100% 100%

1.9 No. of reports (APR; AR &

QPR) submitted on time

Office of the

CEO Quarterly 6 1 3 1 1

1.10 % implementation of ICT

Governance Framework

Office of the

CEO Quarterly

80%

progress 75% 80%

1.11

% of prior period report

items (external audit

report) resolved prior to

commencement of audit

Financial

Admin Annual 90% To be measured in the 4th Quarter

1.12 Number of CSI projects Corporate

Services Annual 2 To be measured in the 4th Quarter

1.13

Number of

apprenticeships and

internships

Corporate

Services Annual 10 To be measured in the 4th Quarter

1.14 No. of successful

campaigns implemented Marketing Quarterly 10 2 2 3 3

1.15 No. of slots occupied on

the electronic billboards Marketing Quarterly 50 12 13 13 12

1.16

No. of activities

developed and

implemented to support

the External Business

Communication channels

Marketing Quarterly 11 1 3 3 4

1.17 % increase in website hits Marketing Annual 15% from

baseline To be measured in the 4th Quarter

3.5 RECONCILING PERFORMANCE TARGETS WITH THE BUDGET AND MTEF

3.5.1 PROGRAMME 1: EXPENDITURE ESTIMATES

The expenditure estimates over the period 2013/14 to 2016/17 take into account the expected

increase in operating activities and the impact on the budget.


28

TABLE 12: EXPENDITURE ESTIMATES

Programme

ADJUSTED

APPROPRIATIO

N

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Office of the CEO; Admin & Finance 30,548,081 33,996,358 (32,461,715) 4,890,578 31,391,344 37,931,452 46,707,251

Marketing 8,887,261 13,153,566 14,236,828 18,916,761 28,697,483 31,657,844 40,184,012

SUBTOTAL 39,435,342 47,149,924 (18,224,887) 23,807,339 60,088,827 69,589,296 86,891,263

Rev enue 77,000 76,480,775 59,471,562 41,228,039 34,045,863 29,737,809




Goods and services of which: - - - - -

Communication 312,884 - - - - -

Computer serv ices 39,925 282,472 828,946 962,958 1,063,515 1,521,100 1,602,490


Maintenance Repairs and running costs 689,578 4,559,707 9,621,022 13,413,221 17,008,448 17,792,125 18,767,919

Operating Leases 1,357,839 299,882 58,673 236,114 322,200 341,532 359,633

Trav el and subsistence 992,622 397,850 201,237 1,182,220 1,254,345 1,335,502 1,407,695

Adv ertising 9,542,038 11,358,882 8,405,575 14,100,909 23,340,000 26,084,250 34,561,843

Training 23,643 238,805 1,550,942 1,694,270 1,795,926 1,892,073


PAYMENT FOR CAPITAL ASSETS 1,906,085 9,089,353 276,168 9,530,000 8,113,300 4,290,058 4,511,915

Building and other fixed structures - 152,060 - - - -

Machinery and equipment 1,906,085 7,497,882 276,168 1,430,000 1,913,300 2,104,098 2,189,249

Cultiv ated assets - - - - - -

Software and other intangible assets 1,439,411 - 8,100,000 6,200,000 2,185,960 2,322,666

Land and subsoil assets - - - - - -

TOTAL 39,435,342 47,149,924 (18,224,886) 23,807,339 60,088,827 69,589,296 86,891,264

AUDITED OUTCOMES MEDIUM TERM EXPENDITURE ESTIMATE

Administration

3.5.2 PERFORMANCE AND EXPENDITURE TRENDS

The budget allocated to Programme 1 is set to increase over the MTEF period as revenues

associated with this programme are expected to decrease. This is as a result of funds held in trust

accounts being utilized which results in decreased interest earned on the balances held, as well

as significant decreases in VAT refunds expected as DTPC is now paying VAT on the transfers

received from DEDT as the entity has been assigned “designated entity” status for VAT purposes

from the National Treasury.

As expected from an Administration programme, compensation of employees makes up a

significant portion of the programme’s budget requirement at 34%. In addition, advertising costs

make up 23% of the total payments of this programme which will be used to support the product

offerings of the other programmes and to promote the DTPC brand and assist in increasing

revenue generation.


29

4 PROGRAMME 2: CARGO AND AIR SERVICES

Programme 2: Cargo and Air Services is fundamental to achieving DTPC’s vision of becoming the

leading global integrated and sustainable air logistics platform in Southern Africa, in line with its Air

Services and Route Development Strategy to increase direct international and regional air

services to and from KZN.

The programme is responsible for the development of air connectivity and air cargo services to

key regional and global destinations. Greater levels of passenger traffic and international trade,

especially air cargo to (and from) many international markets within the context of DTP

contributes towards job creation and economic development which are at the forefront of what

DTPC aims to accomplish. Programme 2: Cargo and Air Services is the critical link between

landside and airside, facilitating cargo movement from Dube TradeZone, Dube AgriZone, Dube

City and the wider KZN export-orientated manufacturing base to the rest of the world. Growth of

throughput at Dube Cargo Terminal is ultimately viewed as a facilitator of parallel developments

of other commercial and industrial developments over the short to medium term in line with

growing the regional economic base.

Sub-Programme 2.1 Cargo Operations: This sub-program aims at making KSIA the Cargo Hub of

Southern Africa providing a safe, secure and seamless operation in a state-of-the-art terminal in

line with global security and operational standards. Supported by direct linkage to major

commercial centres by the Dube AiRoad Trucking service; the intention is to make the cargo

operation the preferred facility for importers and exporters in the region.

Sub-Programme 2.2 Air Services: This sub-program focuses on growing air cargo by linking the

cargo terminal to identified regional and global commercial points of origin/destination based on

the DTPC Air Services and Route Development Strategy which is supported by the DTPC Route

Incentive Framework.

Sub-Programme 2.3 Airside: This sub-program’s objective is to enhance DTPC’s reputation as a

center of aviation excellence by facilitating the development of airside facilities.

The following table depicts the programme’s structure (i.e. sub-programmes), strategic goal and

strategic objectives.


PROGRAMME 2: CARGO AND AIR SERVICES Strategic goal: To enable new air services to international and regional markets, and facilitate

the growth of air cargo

Sub-Programme 2.1:

Cargo Operations


To enable a seamless air cargo service

To facilitate effective air cargo security measures in line with national and

international standards

Sub-Programme 2.2:

Air Services


To facilitate new international and regional air services

SUB-PROGRAMME 2.3:

AIRSIDE


To facilitate the provisioning of airside facilities


30

4.1 STRATEGIC OBJECTIVES: ANNUAL TARGETS FOR 2014/15

TABLE 14: PROGRAMME 2 CARGO AND AIR SERVICES - STRATEGIC OBJECTIVE’S ANNUAL TARGETS FOR 2014/15

PERFORMANCE

INDICATOR

5-YEAR

STRATEGIC

PLAN

TARGET

AUDITED/ACTUAL

PERFORMANCE

ESTIMATED


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

SUB-PROGRAMME 2.1: CARGO OPERATIONS

Strategic objective - To enable a seamless cargo service

2.1

Processing

time against

SLA’s

90% 90% 97% 99% 90% 90% 90% 90%

Strategic objective - To facilitate effective air cargo security measures in line with national and international standards

2.2

Results of

Annual

SACAA audit:

Dube Cargo

Terminal

100% 100% 100% 100% 100% 100% 100% 100%

2.3

Results of

Annual

SACAA audit:

Valuable

Cargo

Terminal

100%

2010/11 =

Valuable

Cargo

Terminal

design

approved.

Ops not

tested.

100% 100% 100% 100% 100% 100%

SUB-PROGRAMME 2.2: AIR SERVICES

Strategic objective - To facilitate new international and regional air services

2.4

No. of

business cases

developed

10 3 3 16 2 2 2 2

SUB-PROGRAMME 2.3: AIRSIDE

Strategic objective - To facilitate the provisioning of airside facilities

2.5

No. of

compliant on-

site

developments

5 n/a - Construction

underway 0 1 1 1 1


31


TABLE 15: PROGRAMME 2 CARGO AND AIR SERVICES - PROGRAMME PERFORMANCE INDICATORS PER SUB-PROGRAMME

PROGRAMME

PERFORMANCE

INDICATOR (PPI)

AUDITED/ACTUAL

PERFORMANCE

ESTIMATED


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17


2.6

Tonnage

throughput

from Dube

Cargo Terminal

-International

5 023 5 060 6123 6 527 - 6 983 7 141 - 7 180 7 856 - 7 898 8 484 - 8 530

2.7

No. of air

freighters using

KSIA

0 1 0 1 0 1 2

2.8

No. of

exceptions

noted from

audit to ensure

adherence to

licensing cond.

0 0 0 7 5 5 5

2.9

Level of

conformance

with

regulations

(per Safety

Management

System (SMS)

audit)

90% 100% 97% 95% 95% 95% 95%

2.10 Availability of

equipment 87% 80.4% 98% 97% 97% 97% 97%

2.11

Increase of

revenue

generated

from trucking

services

n/a - new indicator 8% year-on-

year

8% year-on-

year

8% year-on-

year

8% year-on-

year

PROGRAMME 2.2: AIR SERVICES

2.12

No. of business

cases

reviewed

and/or

Business

Opportunity

proposals

presented

4 10 17 8 8 8 10

PROGRAMME 2.3: AIRSIDE

In the 2013/14 APP, this indicator was “number of business cases reviewed and presented”. To enhance reporting on

performance information, it now includes business opportunity proposals.


32

2.13

No. of CAA

injunctions to

be complied:

development

of the GA

and MRO

facilities

New

program

me in

2011/12

1 0

4

Annex 14

Annex 17

NKP

CARS

5

Annex 14

Annex 17

NKP

CARS

NASP

5

Annex 14

Annex 17

NKP

CARS

NASP

5

Annex14

Annex17

NKP

CARS

4.2.1 IMPROVED REPORTING ON PERFORMANCE INDICATORS

The following programme performance indicator was included in the 2013/14 APP, but removed:

TABLE 16: PROGRAMME 2 CARGO AND AIR SERVICES - PROGRAMME PERFORMANCE INDICATORS PER SUB-PROGRAMME

PROGRAMME

PERFORMANCE

INDICATOR (PPI)

AUDITED/ACTUAL

PERFORMANCE

ESTIMATED


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17


2.11

Availability of

ramp handling

equipment

n/a -

ramp

handlin

g equip

to be

procur

ed by

June

2011

95% 100% 100% 100% 100% n/a

PROGRAMME 2.2: AIR SERVICES

2.14

No. of regional

routes

identified

1 2 1 1 1 1 n/a

4.2.1.1 NOTES

APP 2013/14 PPI 2.11:

Indicator removed to enhance reporting on performance information.

APP 2013/14 PPI 2.14:

Indicator removed to enhance reporting on performance information. Captured in business

cases reviewed or business opportunity proposals presented.


In order to achieve the strategic objectives of this programme, the focus during the 2014/15 year

will be on the following key activities:

Cargo Operations

o Develop and implement air cargo strategy.


33

o Maintain and expand the air cargo connectivity at King Shaka International Airport

specifically focusing on regional routes.

o Maintain the existing/excellent operational benchmarks already achieved in the DTPC

Cargo Terminal.

o Prepare specific business cases and present the same to potential air cargo operators.

o Maintain the existing/excellent aviation security standards achieved in the DTPC Cargo

Terminal and achieve certification from SA CAA as an approved Aviation Security Training

Organization, in order to provide world class aviation security training in the Province and to

the neighboring African States.

Air Service

o Expand regional and international route network through partnerships with relevant airlines.

o Monitor performance of existing regional routes particularly Lusaka, Harare, Maputo and

Mauritius with intention of identifying any areas of intervention or support required.

o Monitor performance of existing international routes with intention of identifying any areas

of intervention or support required.

o Review and update passenger data to identify potential new international routes

o Prepare business cases and market key routes to relevant international airlines.

o Ongoing implementation of Air Services and Route Development Strategy

Airside

o Taxiway tie to the ACSA Bravo Taxiway will be constructed.

o Review and update passenger data to identify potential new international routes

o Regulatory applications are still underway and may be concluded within the 2014/15

o Construction of the platforms will commence in 2015/16





TABLE 17: PROGRAMME 2 CARGO AND AIR SERVICES - QUARTERLY TARGETS FOR 2014/15


PROGRAMME

REPORTING

PERIOD

ANNUAL

TARGET

2014/15

QUARTERLY TARGETS

1st 2nd 3rd 4th

2.1 Processing time

against SLA’s

Cargo

Operations Quarterly 90% 90% 90% 90% 90%

2.2

Results of Annual

SACAA audit:

Dube Cargo

Terminal

Cargo

Operations Annual 100% To be measured in the 1st quarter

2.3

Results of Annual

SACAA audit:

Valuable Cargo

Terminal

Cargo

Operations Annual 100% To be measured in the 2nd quarter


34

2.4 No. of business

cases developed Air Services Annual 2 To be measured in the 4th quarter

2.5

No. of compliant

on-site

developments

Airside Annual 1 To be measured in the 4th quarter

2.6

Tonnage

throughput from

Dube Cargo

Terminal -

International

Cargo

Operations Quarterly 7 141 - 7 180

1 785 -

1 795

1 785 -

1 795

1 785 -

1 795

1 785 -

1 795

2.7 No. of air freighters

using KSIA

Cargo

Operations Annual 0 To be measured in the 4th quarter

2.8

No. of exceptions

noted from audit to

ensure adherence

to licensing

conditions

Cargo

Operations Bi-annually 5 3 2

2.9

Level of

conformance to

SMS regulations

Cargo

Operations Annual 95% To be measured in the 4th quarter

2.10 Availability of

equipment

Cargo


2.11

Increase of revenue

generated from

trucking services

Cargo

Operations Quarterly

8% year-on-

year 2% 2% 2% 2%

2.12

No. of business

cases reviewed

and/or Business

Opportunity

proposals

presented

Air Services Quarterly 8 2 2 2 2

2.13

No. of CAA

injunctions to be

complied:

development of the

GA and MRO

facilities

Airside Annual

5

Annex 14

Annex 17

NKP CARS

NASP

To be measured in the 4th quarter




increase in operating activities and the impact on the budget as shown above.

This indicator is similar to another in the KZN PGDP i.e. “volume of cargo handled at Dube Cargo Terminal”.

Safety Management System for the Cargo Terminal as per the requirements of ICAO and SA CAA which includes OHS.


35


Programme

ADJUSTED

APPROPRIATIO

N

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Spatial Planning 211,677 - - - -

Air Serv ices 2,303,183 - 12,445,981 3,505,695 6,517,899 8,055,773 7,492,509

Cargo Terminal 65,191,029 -

Cargo Operations 110,093,926 55,701,723 68,133,096 54,645,507 56,089,572 49,495,406

Airside 13,488,526 - - - - -

SUBTOTAL 67,705,888 123,582,451 68,147,704 71,638,791 61,163,406 64,145,345 56,987,915

Rev enue 9,568,602 11,554,131 15,212,765 16,628,910 19,054,406 22,129,539




Goods and services of which: - - - - - -


Computer serv ices 366,742 68,128 293,114 557,040 61,000 64,660 68,087



Operating Leases 820,854 116,083 51,788 99,000 103,237 109,431 115,231

Trav el and subsistence 1,251,763 1,261,418 227,395 636,627 693,448 735,055 774,013

Adv ertising 2,744,677 1,932,677 1,103,799 2,976,363 4,750,000 5,279,000 5,399,787

Training - 1,209,903 239,627 1,686,688 2,848,543 3,104,456 3,275,442


PAYMENT FOR CAPITAL ASSETS 21,253,091 62,713,889 33,949,136 27,060,000 7,685,000 7,600,000 100,000

Building and other fixed structures 24,422,773 - - - - -

Machinery and equipment 21,253,091 38,222,388 33,949,136 19,190,000 7,685,000 7,600,000 100,000

Cultiv ated assets - - - - - -

Software and other intangible assets 68,728 - 7,870,000 - - -


TOTAL 67,705,888 123,582,451 68,147,704 71,638,791 61,163,406 64,145,345 56,987,915


Cargo and Air Services


The key purpose of the Air Services sub-programme is to increase direct international and regional

air services to and from KZN and budget has been provided for this.

Overall, the Cargo Operations budget is expected to decrease by 27% from 2013/14 to 2016/17.

This is due to increased revenues of 45% over the same period, while current payments are

expected to increase by an average of 10.7% per year over the MTEF. Budget provided under

‘payments for capital assets’ in 2014/15 and 2015/16 is for the phasing in of new X-ray machines

which is required to ensure continued compliance with the latest aviation security standards.


36

5 PROGRAMME 3: PROPERTY

Programme 3 consists of 2 sub-programmes i.e. Property Commercial and Property Operations.

Sub-Programme 3.1 Property Commercial: The Property Commercial Sub-Programme broadly

focuses on the marketing and leasing of DTP and JV land to potential investors and developers,

and facilitates land development on land controlled by DTPC. The primary focus of Property:

Commercial is on the development of existing zoned serviced sites i.e. Dube TradeZone (Phase 1)

and Dube City (Phase 1). The aim includes introducing and integrating these companies with

other offerings within DTPC’s various programmes such as Dube Cargo Terminal, ICT and Dube

AgriZone. All sites are subject to land leases ranging from 35 to 50 years, depending on the nature

of the development (i.e. warehousing, light manufacturing, office blocks, hotels, etc.) with a first

option to renew the lease when it expires. DTPC has provided bulk infrastructure for the land

including roads, sewerage, water and electricity. Once the developer has agreed pertinent

terms and the land lease is concluded, the developer is obligated to build within an agreed

timeline. The Property Commercial Sub-Programme is critical to the success of DTPC as it serves as

a catalyst for the cargo and ICT businesses, ensuring long term sustainability as well as the

creation of jobs. The closer manufacturers are to airside activities, the more competitive their

respective companies can be in terms of price and time access to markets.

DTP consists of two main property zones:

The first is Dube TradeZone which is industrial land surrounding Dube Cargo Terminal. Within Dube

TradeZone, preference is given to businesses which are aligned to air services i.e. companies that

import or manufacture for export, logistic and support companies. Companies targeted are ones

that would benefit from close proximity to KSIA and Dube Cargo Terminal, the freight forwarders

on site and DTPC’s trucking division Dube AiRoad. The second is Dube City which is currently in its

first phase of development. It comprises a 12-hectare site, increasing to 24 hectares on

completion. Land use has been planned to include a mix of hotel, conference, entertainment,

retail and knowledge-intensive companies and company head offices. DTPC’s own

headquarters, 29°South, is situated in the heart of Dube City. DTPC currently has developers

looking at various sites; the first development planned after 29°South is a hotel development

which is under final negotiations. It is anticipated that this will include a 200-bed hotel and large

conference centre with retail on the ground floor and approximately 15 000 m² of offices. In

addition, DTPC has a few large multinational companies interested in sites for head offices.

Companies may either develop for themselves or link in with a current developer looking to put a

project together.

In Dube TradeZone, the light industrial area, DTPC has experienced a high degree of interest and

has concluded a lease over 18 sites. A number of lease agreements are being finalized. DTPC

currently have 46.81% of sites built or with final agreements completed and are confident of this

trend continuing. DTPC is now focusing on bringing online future phases (TradeZone Phase 2 and

uShukela). In Dube City, because of the oversupply of office, commercial and hotel space in the

surrounding areas (between Umhlanga and Ballito) DTPC is focusing on the following: (1)

encouraging development on key sites by putting in appropriate infrastructure (i.e. parking), (2)

driving development to the precinct by the optimization and development of Block F (the so-

called DTPC Campus), and (3) creating development products on specific sites to ensure a

broader range of investment products for the private sector.


37

DTPC’s initial strategy has been to meet with the major banks to discuss and get buy in on deal

structures and relevant clauses in DTPC’s agreements which affect their rights. DTPC’s rates and

lease terms have been favourably received by the market and there is reason to be confident

that increased focus will ensure that development in Dube City is a success.

Sub-Programme 3.2 Property Operations: Two key aspects to property operations are (1)

Occupancy and Lease Management and (2) Facilities, Maintenance and Asset Management.

DTPC’s strategy is to utilize a mix of own staff as well as service providers with the right skills and

capacity to provide the best level of facilities support to ensure that property assets are

maintained to a high standard. This involves all aspects of asset maintenance including planned

(and unscheduled) maintenance, waste removal, pest control, maintenance of generators,

HVAC, lift maintenance, general maintenance and cleaning services. Service level agreements

are signed with all service providers and managing these contracts is a key requirement in

ensuring the best levels of service are provided to tenants and end users. Occupancy and Lease

Management is a key element of the property programme in that it has to ensure that

competitive and market related rentals are obtained and that rentals are collected timeously and

arrears properly managed in terms of the lease agreements.


PROGRAMME 3: PROPERTY Strategic goal: To facilitate private sector investment on land controlled by DTPC

SUB-PROGRAMME 3.1:

COMMERCIAL


To secure agreements with private sector investors in property

development

SUB-PROGRAMME 3.2:

OPERATIONS

Strategic objectives :

To effectively manage DTPC‘s property investments

To maintain state of the art facilities within DTPC and JV developments

In the 2013/14 APP, there were three strategic objectives identified. The following strategic objective was removed

since: To service DTPC’s developers and tenants in accordance with lease obligations.

In the 2013/14 APP, this objective was formulated as follows: To effectively manage DTPC’s assets. However, assets

are now defined as property investments specifically to rule out any misunderstanding.


38


TABLE 20: PROGRAMME 3 PROPERTY - STRATEGIC OBJECTIVE’S ANNUAL TARGETS FOR 2014/15

PERFORMANCE

INDICATOR

5-YEAR

STRATEGIC

PLAN

TARGET

AUDITED/ACTUAL

PERFORMANCE

ESTIMATED


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

SUB-PROGRAMME 3.1: COMMERCIAL

Strategic objective - To secure agreements with private sector investors in property development

3.1

Cumulative take

up of development

opportunities by

private sector

investment (ZAR)

R680

million

R0

million

R300

million

R525

million

R625

million

R730

million

R840

million

R960

million

SUB-PROGRAMME 3.2: OPERATIONS

Strategic objective – To effectively manage DTPC’s property investments

3.2

% occupancy of

DTPC owned

buildings:

Dube TradeZone

90% 95% 100% 100% 90% 90% 90% 92.5%

3.3

% occupancy of

DTPC owned

buildings:

Dube City

90% 2011/2012 = 54% 74% 90% 90% 90% 92.5%

3.4 % of tenant

satisfaction >80% 85% 85% 81% >80% >80% >80% >80%

Strategic objective - To maintain state of the art facilities within DTPC and JV developments

3.5

% completion of

relevant

maintenance

programs

90% 2011/2012 = 84% 96% 90% 90% 90% 90%

The scope of preventative maintenance increases with each new building and also increases with the commissioning

of each new service (e.g. pump houses, generators).


39


TABLE 21: PROGRAMME 3 PROPERTY - PROGRAMME PERFORMANCE INDICATORS PER SUB-PROGRAMME

PROGRAMME PERFORMANCE

INDICATOR (PPI)

AUDITED/ACTUAL

PERFORMANCE

ESTIMATED


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17


3.6

No. of square meters of

land leased in Dube

TradeZone Phases 1

and 2 (cumulative)

n/a - new indicator 200 000m² 240 000m² 280 000

m²

3.7

No. of bulk square

meters let in Dube City

(cumulative)

n/a - new indicator 15 000m² 20 000m² 25 000

m²

3.8

Minimum average

rental rate per m2 (total

rental/area rented):

Land leases

(Dube TradeZone Phase

1)

2011/2012 = R7 m2 R7 R7.50 -

10.00 m2

R8.00 -

10.50 m2

R8.50 -

11.20 m2

R8.50 -

12.00

m2

3.9

Minimum average

rental rate per bulk m2

(total rental/area

rented): Land leases

(Dube City)

n/a - new indicator R0 R3.20 -

8.00 m2

R3.50 -

9.00 m2

R3.70 -

9.60 m2

R4.00 -

10.00

m2


3.10

Minimum average



Owned buildings

(Dube TradeZone)

R35 m2 R38 m2 R44.62

R40 - 45

m2

R42 - 50

m2

R45-53.50

m2

>R48 - 57

m2

3.11

Minimum average



2011/2012 = R45 m2 R50.62 R48 - 86

m2

R52 - 92

m2

R55 - 98

m2

>R60 - 70

m2

New indicator developed to enhance reporting on performance information. It measures the take up of the number

of available square meters for development. It ensures the long term viability and success of DTPC as Master

Developer. As this now includes future phases coming on-stream, DTPC needs to measure take-up of squared meters as

opposed to number of sites.

New indicator developed to enhance reporting on performance information. SZ1 (or Support Zone 1) is the area

commonly called Dube City. It consists of 44 sites measuring 39 320 m2 of floor area with a current bulk allowance of 120

000 m². The benefit of increasing the bulk development on each site makes reporting on the number of bulk square

meters more accurate than number of sites. Each site is available for development (made up of office, hotel and retail

space) either as a JV or through private development. The development of this site is important to the overall success

of DTP as it will become a development node which aims to grow employment in the area.

In previous versions of DTPC’s APP, only Phase 1 of Dube TradeZone was relevant. However, the take-up rate and

serious interest in Phase 1 has prompted DTPC to accelerate technical work on Dube TradeZone Phase 2, with a

proposed 2015 launch date. In this year’s APP (2014/15 APP), DTPC is distinguishing between Dube TradeZone Phase 1

and Dube TradeZone Phase 2. This particular indicators is relevant to Dube TradeZone Phase 1 only.


40

Owned buildings

(Dube City)


The following programme performance indicators were included in the 2013/14 APP, but

removed:

TABLE 22: PROGRAMME 3 PROPERTY - PROGRAMME PERFORMANCE INDICATORS PER SUB-PROGRAMME

PROGRAMME

PERFORMANCE

INDICATOR (PPI)

AUDITED/ACTUAL

PERFORMANCE

ESTIMATED


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17


3.6

No. of

available (45)

sites taken up

for

development:

Dube

TradeZone

(cumulative)

0 18 24 32 38 45 n/a

3.7

No. of

available (44)

sites taken up

for

development:

Dube City

(cumulative)

0 0 0 20 30 44 n/a

5.2.1.1 NOTES

APP 2013/14 PPI 3.6:

Indicator removed to enhance reporting on performance information. Indicator replaced by

introducing a new indicator, i.e. number of square meters of land leased in Dube TradeZone

Phases 1 and 2 (previous versions of DTPC’s APP included only Phase 1). New indicator measures

the take up of the number of available square meters for development. It ensures the long term

viability and success of DTPC as Master Developer. As this now includes future phases coming on-

stream, DTPC needs to measure take-up of squared meters as opposed to number of sites.

APP 2013/14 PPI 3.7:


introducing a new indicator, i.e. number of bulk square meters let in Dube City. Dube City consists

of 44 sites measuring 39 320 m2 of floor area with a current bulk allowance of 120 000 m². Each site

is available for development (made up of office, hotel and retail space) either as a JV or through

private development. The development of this site is important to the overall success of DTP as it

will become a development node which aims to grow employment in the area. The benefit of

increasing the bulk development on each site makes reporting on the number of bulk square

meters more accurate than number of sites.


41


In order to achieve the strategic objectives of this programme, the focus during the 2014/15

financial year will be on the following key activities:

Property Commercial

o Conclude lease agreements on targeted private sector investment projects in Dube

TradeZone Phases 1 and 2, and Dube City

o Drive property development in Dube City by undertaking strategic infrastructure projects

i.e. underground parking Block D and office development (BPO Park) on Block F (DTP

Campus)

o Support companies undertaking developments in Dube TradeZone Phases 1 and 2 and

Dube City by facilitating the planning, construction and commissioning phases of their

projects

o Assist property investors and tenants to make full use of DTPC’s support services

o Market the release of Dube TradeZone Phase 2

Property Operations

o Conduct site wide infrastructure assessment to ensure integrity of infrastructural assets and

institute suitable preventative maintenance plans

o Develop and implement a precinct-wide, integrated Building Management System to

improve efficiencies, reporting and provide early warning signals for operation-critical

systems and equipment

o Implement energy saving plans to reduce consumption within all precincts

o Build capacity within program to start to undertake own maintenance of system critical

plant and equipment

o Source tenants to ensure high occupancy of DTPC owned buildings

o Take over new Airchefs and Gift of Givers buildings from Infrastructure and manage

warranties/ latent defects and ensure new facilities contracts are in place for these

buildings

o Undertake rental review to ensure competitive rentals are obtained for all buildings

o Administer new DTPC led developments, AirChefs and Gift of the Givers and ensure tenants

are billed correctly and that the tenants are properly managed according to the lease

agreements.






42

TABLE 23: PROGRAMME 3 PROPERTY - QUARTERLY TARGETS FOR 2014/15


PROGRAMME

REPORTING

PERIOD

ANNUAL

TARGET

2014/15

QUARTERLY TARGETS

1st 2nd 3rd 4th

3.1

Cumulative take up of

development

opportunities by

private sector

investment (ZAR)

Commercial Annual

R730 million

(cumulative

since

2010/11)

To be measured in the 4th quarter

3.2

Occupancy rate (%) of

DTPC owned buildings:

Dube TradeZone

Operations Quarterly 90%

90%

90%

90%

90%

3.3

Occupancy rate (%) of

DTPC owned buildings:

Dube City

Operations Quarterly 90%

90%

90%

90%

90%

3.4 % of tenant

satisfaction Operations Annual >80% To be measured in the 4th quarter

3.5

% completion of

relevant maintenance

programs


3.6

No. of square meters

of land leased in Dube

TradeZone Phases 1

and 2 (cumulative)

Commercial Bi-Annual 200 000 m2 100 000 m2 200 000 m2

3.7

No. of bulk square

meters let in Dube City

(cumulative)

Commercial Annual 15 000 m2 To be measured in the 4th quarter

3.8

Minimum average

rental rate per m2

(total rental/area

rented):

Land leases

(Dube TradeZone

Phase 1)

Commercial Quarterly R8.00 -

10.50 m2

R8.00 -

10.50 m2

R8.00 -

10.50 m2

R8.00 -

10.50 m2

R8.00 -

10.50 m2

3.9

Minimum average

rental rate per bulk m2

(total rental/area

rented):

Land leases

(Dube City)

Commercial Quarterly R3.50 -

9.00 m2

R3.50 -

9.00 m2

R3.50 -

9.00 m2

R3.50 -

9.00 m2

R3.50 -

9.00 m2

3.10

Minimum average

rental rate per m2

(total rental/area

rented):

Owned buildings

(Dube TradeZone)

Operations Quarterly

R42 - 50

m2

R42 - 50

m2

R42 - 50

m2

R42 - 50

m2

R42 - 50

m2

3.11

Minimum average

rental rate per m2

(total rental/area

rented):

Owned buildings

(Dube City)

Operations Quarterly R52 - 92

m2

R52 - 92

m2

R52 - 92

m2

R52 - 92

m2

R52 - 92

m2


43




increase in operating activities and the impact on the budget.


Programme

ADJUSTED

APPROPRIATIO

N

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

TradeZone 117,500,944 - - - -

Support Zone 200,394,788 - - - -

Property Operations - 186,638,752 53,681,540 31,635,315 33,548,914 22,906,321 15,930,563

Commercial - - 27,373,608 2,893,103 3,962,761 5,173,818 5,173,040

SUBTOTAL 317,895,732 186,638,752 81,055,148 34,528,418 37,511,675 28,080,139 21,103,603

Rev enue 7,546,967 7,978,680 11,830,118 15,018,517 23,795,839 31,200,422


Compensation of employees - 3,283,168 4,234,936 6,637,621 6,997,647 7,444,649 7,911,415


Communication - - - - - -

Computer serv ices - - 255,409 99,680 71,969 77,013 81,095

Consultants, contractors and special serv ices 5,988,888 3,420,644 699,559 1,395,181 1,660,000 1,857,200 1,973,832


Operating Leases 588,840 383,875 25,000,000 - - - -

Trav el and subsistence 13,000 86,166 22,731 258,000 210,000 261,800 298,485

Adv ertising 74,401 156,688 180,400 585,000 1,680,000 1,780,800 1,875,182

Training - 4,190 70,376 180,318 185,000 212,800 224,078




Machinery and equipment 24,132,220 1,323,707 2,760,000 3,050,000 1,000,000 1,026,500

Cultiv ated assets - - - - - - -

Software and other intangible assets - 1,999 - 1,600,000 750,000 150,000


TOTAL 317,895,732 186,638,752 81,055,148 34,528,418 37,511,675 28,080,139 21,103,603


Property


After securing a major electronics manufacturer as a tenant at the Dube TradeZone, the

projected revenue for 2014/15 is expected to remain relatively low as the approved incentives

offered to secure the tenant have been taken into account in the budget. By 2016/17, however,

revenue is expected to be double that of 2014/15 as additional developments come on line and

the beneficial effects of this high profile tenant begin to be felt.

The majority of expenditure associated with this programme is focused on facilities maintenance

as the key focus of this programme is centered on attracting and retaining private sector

investment in support of DTPC’s developmental objectives of economic development,

employment creation and social upliftment.


44

6 PROGRAMME 4: AGRIZONE

The purpose of this programme is to develop and operate a cluster of facilities to support the

stimulation of the perishables sector in KZN. This is important to DTPC as it operates within a labour

intensive sector. The AgriZone is a potential catalyst for the development of a perishables sector in

the province which serves to boost air cargo exports and contributes to the development of a

more efficient supply chain for perishables.

Sub-Programme 4.1 Dube AgriZone Services: This sub-programme is aimed at providing reliable,

effective and efficient services (water, electricity, fuel, training, marketing, R&D, maintenance,

etc.) to AgriZone tenants / operators to enable their businesses to function well and grow, thereby

generating revenue and potentially increasing cargo volumes though Dube Cargo Terminal.

Sub-Programme 4.2 Dube AgriZone Sustainable Farming Initiatives: This sub-programme is aimed

at ensuring that DTPC implements a number of environmentally sustainable projects in order to

decrease its carbon foot print and contribute to the goal of developing a “Green Aerotropolis”

based on a balance between ecological, social and economic factors.

Sub-Programme 4.3 Tissue Culture Facility: The intention is to ensure that this facility has

appropriate skills and resources to implement its business plan thereby supporting growers in

AgriZone and outside by providing good quality mother material and also potentially increasing

cargo throughput volumes.

Sub-Programme 4.4 Landscaping and Rehabilitation: The nursery, rehab and landscaping sub-

programme is aimed at enabling DTPC to fulfill its rehabilitation and restoration obligations as well

as possibly providing a commercial component through indigenous species’ propagation at a

later stage when the obligations have been fulfilled. It is critical to ensure that enough indigenous

species are propagated from the mist house to support the KSIA and DTP precincts - including

Dube AgriZone. This Sub-Programme will also strive to ensure that the landscaping and

maintenance of DTPC Zones is in line with providing a high quality, aesthetically pleasing

operating environment for tenants and users.

Sub-Programme 4.5 AgriZone Expansion: This sub-programme relates to the construction of the

second phase of the AgriZone. This will entail obtaining environmental approval, attracting more

growers, doing a new Master Plan and design of facilities. This will be followed by the construction

of various facilities and supporting infrastructure.


PROGRAMME 4: AGRIZONE Strategic goal: To generate sustainable volumes of perishables in supporting the integrated air

logistics platform

SUB-PROGRAMME 4.1:

DUBE AGRIZONE SERVICES


To provide reliable, effective and efficient AgriZone services

SUB-PROGRAMME 4.2:

SUSTAINABLE FARMING

INITIATIVES


To ensure that the AgriZone is used to initiate and promote sustainable

farming initiatives and businesses

SUB-PROGRAMME 4.3:

TISSUE CULTURE FACILITY


To manage, operate and maintain the tissue culture facility


45

SUB-PROGRAMME 4.4:

LANDSCAPING AND

REHABILITATION


To provide species (including rare and endangered species) for

maintenance of open spaces and landscaped areas and also create

and maintain high quality landscaping of the precinct

SUB-PROGRAMME 4.5:

DUBE AGRIZONE EXPANSION


To identify and conclude agreements with suitable operators and

producers


TABLE 26: PROGRAMME 4 AGRIZONE - STRATEGIC OBJECTIVE’S ANNUAL TARGETS FOR 2014/15

PERFORMANCE

INDICATOR

5-YEAR

STRATEGIC

PLAN

TARGET

AUDITED/ACTUAL

PERFORMANCE

ESTIMATED

PERFORMAN

CE

MEDIUM-TERM TARGETS

2010/

11

2011/

12 2012/13 2013/14 2014/15 2015/16 2016/17

SUB-PROGRAMMES 4.1: DUBE AGRIZONE SERVICES

Strategic objective - To provide reliable, effective and efficient AgriZone services

4.1

% of Tenant

Satisfaction

(customer

survey)

90% 2011/2012 =

85% 85% 90% 80% 80% 85%

4.2

No. of export

sales

agreements

concluded

4 n/a Strategy

Developed 1 contract

1

contract

2

contracts

2

contracts

SUB-PROGRAMME 4.2: DUBE AGRIZONE SUSTAINABLE FARMING INITIATIVES

Strategic objective - To ensure that the AgriZone is used to initiate and promote sustainable farming initiatives and

businesses

4.3 No. of projects

initiated 5 2011/2012 = 3 3 2 0 0 2

SUB-PROGRAMME 4.3: TISSUE CULTURE FACILITY

Strategic objective - To manage, operate and maintain the tissue culture facility

4.4

No. of plant

tissue cultures

propagated

5 2011/2012 = 0 7 2 1 0 2

SUB-PROGRAMME 4.4: LANDSCAPING AND REHABILITATION

In the 2013/14 APP, this objective was formulated as follows: To provide species (including rare and

endangered species) for maintenance of open spaces and landscaped areas. However, the objective has

been further refined to include landscaping. This objective is important because keeping tenants and users

satisfied with their business environment and enhancing DTPC’s reputation as a world class operating

environment.

Targets for 2014/15 and 2015/16 were adjusted downwards compared to the 2013/14 APP (previously 90% in both

cases). The adjustment was done to reflect previous experience given the subjectivity of the tenant survey and the

small sample of Dube AgriZone tenants.


46

Strategic objective - To provide species for maintenance of open spaces and landscaped areas and also create and

maintain high quality landscaping of the precinct

4.5 No. of hectares

rehabilitated n/a - new indicator 16 ha 14 ha 20 ha

4.6

% satisfaction

with

landscaping

and landscape

maintenance to

DTPC precincts

n/a - new indicator 80% 85% 85%

SUB-PROGRAMME 4.5: DUBE AGRIZONE EXPANSION

Strategic objective - To identify and conclude agreements with suitable operators and producers

4.7

No. of available

hectares taken

up

16 n/a 5 4 4 4 4


TABLE 27: PROGRAMME 4 AGRIZONE - PROGRAMME PERFORMANCE INDICATORS PER SUB-PROGRAMME

PROGRAMME

PERFORMANCE

INDICATOR (PPI)

AUDITED/ACTUAL PERFORMANCE ESTIMATED


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

SUB-PROGRAMME 4.1: DUBE AGRIZONE SERVICES

4.8

No. of

services

introduced/o

ffered

2011/2012 = 3 2 2 2 2 1

4.9

% completion

of relevant

specialist

maintenance

programme

2011/2012 = 100% 100% 100% 100% 100% 100%

4.10

Volume of

produce in

the AgriZone

(tonnage)

2011/2012 = 1 627 2 307 2 500 4 000 5 000 6 500

SUB-PROGRAMME 4.2: DUBE AGRIZONE SUSTAINABLE FARMING INITIATIVES

New indicator developed to enhance reporting on performance information. This is to track the progress being made

to rehabilitate the site in order to meet some of the ROD obligations.

New indicator developed to enhance reporting on performance information. This objective is important because

keeping tenants and users satisfied with their business environment and enhancing DTPC’s reputation as a world class

operating environment.

Adjusted upwards from 3 750 in the 2013/14 APP.

Adjusted upwards from 4 500 in the 2013/14 APP.


47

4.11

% energy

needs

derived from

renewable

energy

sources

n/a 17% 5% 15% 15% 20%

SUB-PROGRAMME 4.3: TISSUE CULTURE FACILITY

4.12

No. of

contracts

obtained

from

customers

2011/2012 = 0

Operation

al plan

complete

1 2 2 2

4.13

Tissue culture

facility

revenue

n/a - new indicator R2.8

million

R3.7

million

R4.8

million


4.14

No. of

hectares

maintained

per the

AgriZone

rehabilitation

plan

AgriZone

rehabilitatio

n - alien

managem

ent 90%

AgriZone

rehabilitatio

n - alien

managem

ent 100%

R&R area

maintenan

ce - 100%

R&R area

maintenanc

e - 43ha

(100%)

R&R area

maintenan

ce - 43ha

(100%)

R&R area

maintenan

ce - 43ha

(100%)

R&R area

maintena

nce -43ha

(100%)



removed:


PROGRAMME

PERFORMANCE

INDICATOR (PPI)

AUDITED/ACTUAL

PERFORMANCE

ESTIMATED


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17


4.5

No. of plants

produced in

the nursery

140 000

per

annum

2011/2012

= 3 753

438

174

167

140 000

plant

stock

140 000

plant

stock

140 000

plant

stock

n/a

SUB-PROGRAMME 4.1: DUBE AGRIZONE SERVICES

4.10

No. of

training

courses held

2011/2012 = Training

programme

developed

1 1 3 2 n/a

6.2.1.1 NOTES

APP 2013/14 KPI 4.5:

New indicator developed to enhance reporting on performance information. It tracks Dube AgriZone’s ability to

stimulate product development for the sector and progress towards becoming commercially sustainable.


48


introducing a new indicator, i.e. number of hectares rehabilitated.

APP 2013/14 PPI 4.10:

Indicator removed due to a change of focus and strategy.




Dube AgriZone Services

o Ongoing maintenance of existing infrastructure and facilities

o Water quality management

o Working towards implementing standards such as Fair Trade

o Working to improve production yields

Dube AgriZone Sustainable Farming Initiatives

o Research and Scoping new projects

o Monitoring existing projects e.g. performance of solar system on a monthly basis

o Implementing new projects

o Partnering with relevant institutions such as tertiary institutions and industry players

Tissue Culture Facility

o Enhancing performance on existing production

o Developing new markets and obtaining new clients

o Improved productivity

o Research on improvements

o In house hardening of materials

Landscaping and Rehabilitation

o Production of new indigenous plants for planting out

o Maintenance of existing rehabilitated areas

o Rehabilitation of new areas as per the rehab plans

o Managing landscape maintenance throughout the site

AgriZone Expansion

o Participate in Environmental Impact Assessment for Phase 2 including Engineering Services

o Develop agreements with potential partners

o Research into new prospective facilities and agri businesses

o Input into procurement of contractors for implementation


49





TABLE 29: PROGRAMME 4 AGRIZONE - QUARTERLY TARGETS FOR 2014/15


PROGRAMME

REPORTIN

G PERIOD

ANNUAL

TARGET

2014/15

QUARTERLY TARGETS

1st 2nd 3rd 4th

4.1

% of Tenant

Satisfaction

(customer survey)

Dube AgriZone

Services Annual 80% To be measured in the 4th quarter

4.2

No. of export sales

agreements

concluded

Dube AgriZone

Services Annual 1 contract To be measured in the 4th quarter

4.3 Number of projects

initiated

Sustainable

Farming

Initiatives

Quarterly 0 0 0 0 0

4.4 No. of plant tissue

cultures propagated

Tissue Culture

Facility Annual 1 To be measured in the 4th quarter

4.5 No. of hectares

rehabilitated

Landscaping

and

Rehabilitation

Quarterly 16 ha 4 4 4 4

4.6

% satisfaction with

landscaping and

landscape

maintenance to DTP

precincts

Landscaping

and

Rehabilitation

Annual 80% To be measured in the 4th quarter

4.7 No. of available

hectares taken up

Dube AgriZone

Expansion Annual 4 ha To be measured in the 4th quarter

4.8 No. of services

introduced/offered

Dube AgriZone

Services Bi-Annual 2 1 1

4.9

% completion of

relevant specialist

maintenance

programme

Dube AgriZone

Services Quarterly 100% 25% 25% 25% 25%

4.10

Volume of produce

in the AgriZone

(tonnage)

Dube AgriZone

Services Quarterly 4 000 1 000 1 000 1 000 1 000

4.11

% energy needs

derived from

renewable energy

sources

Sustainable

Farming

Initiatives

Annual 15% To be measured in the 4th quarter

4.12

No. of contracts

obtained from

customers

Tissue Culture

Facility Annual 2 To be measured in the 4th quarter

4.13 Tissue culture facility

revenue

Tissue Culture

Facility Annual R2.8 million To be measured in the 4th quarter

4.14

No. of hectares

maintained per the

AgriZone

rehabilitation plan

LANDSCAPING

AND

REHABILITATION

Quarterly

R&R area

maintenance

- 43ha (100%)

10 10 10 13


50






ProgrammeADJUSTED

APPROPRIATION

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

AgriZone Serv ices 328,490,765 268,595,831 115,933,298 7,363,705 9,910,508 10,332,952 10,801,559

Tissue Culture Facility - - 2,475,770 2,714,594 1,901,631 537,491 (1,086,616)

AgriZone Green Projects/Sustainable farming initiativ es - 48,575,685 600,000 1,000,000 1,060,000 1,116,180

Landscaping (Nursery) and Rehabilitation 1,787,055 5,168,647 10,261,184 7,928,475 8,414,160 8,886,648

AgriZone Expansion 1,200,000 - - -

SUBTOTAL 328,490,765 318,958,572 123,577,715 22,139,483 20,740,614 20,344,603 19,717,771

Rev enue 2,727,501 14,444,000 15,481,360 17,224,580 19,193,206


Compensation of employees 867,713 4,074,095 5,851,703 8,554,006 9,295,629 9,832,591 10,452,045



Computer serv ices 320 29,563 - - - - -

Consultants, contractors and special serv ices 906,030 10,377,500 6,377,777 1,920,000 1,126,600 1,194,196 1,257,488


Operating Leases 541 944 - - 57,434 60,880 64,107


Adv ertising 588,595 105,974 127,720 360,000 1,063,300 1,127,098 1,186,834

Training - 2,550 13,395 410,468 433,044 459,026 483,355


PAYMENT FOR CAPITAL ASSETS 325,337,269 291,307,928 93,189,656 2,829,800 1,600,000 900,000 200,000

Building and other fixed structures 324,864,645 268,619,454 92,262,146 950,000 - 850,000 -

Machinery and equipment 472,624 22,663,312 927,510 1,879,800 1,600,000 50,000 200,000

Cultiv ated assets 25,161 - - - - -

Software and other intangible assets - - - - - - -

Land and subsoil assets - - - - - - -

TOTAL 328,490,765 318,958,572 123,577,715 22,139,483 20,740,614 20,344,603 19,717,771


AgriZone


Overall, the budget allocated to the Dube AgriZone is set to decrease over the MTEF period. This

is due mainly to the Tissue Culture Facility which is envisaged to ultimately become self-sufficient in

terms of funding. As operations in phase 1 are now established, with the last facility becoming

operational in the previous financial year, focus will shift to developing the next phase of the

project.

48% of Programme 4’s budget has been allocated to AgriZone Services. The majority of this sub-

programme’s budget is required for the achievement of this year’s key activities of on-going

maintenance of the AgriZone’s existing infrastructure and facilities and water quality

management.


51

At 38% of the programme’s budget, Landscaping and Rehabilitation take the next biggest portion

of the programme’s allocation. This sub-programme assists the broader DTPC precinct in meeting

ROD obligations for environmental rehabilitation and maintaining the landscaping throughout the

precinct.


52

7 PROGRAMME 5: INFORMATION COMMUNICATION TECHNOLOGY (ICT) - DUBE ICONNECT

Programme 5: ICT defines DTPC’s requirement and/or demand for information technology

infrastructure, services and systems to support the overall growth strategy of the business. The ICT

Programme develops and provisions commercial ICT services to DTPC customers including onsite

tenants, developers, investors, and off-site users. This programme is also referred to as Dube

iConnect, and is different from DTPC’s Office of the CEO IT team (under Programme 1), which

caters for DTPC’s internal IT needs.

Over the past number of years the global IT industry has seen the emergence and adoption of

commercial IT services based in the cloud. Essentially the worldwide trend is for the consolidation

of IT resources and infrastructure into a single environment (data centre) which provides

economies of scale which can be passed on to companies as significant cost savings with respect

to IT. This model typically reduces companies capex spend and risk, and converts IT to a

predominantly “pay as you go” opex model. Increasingly companies which do not provide IT as

a core business are moving to the opex model, whilst specialized companies wishing to offer

infrastructure, platform or software as a service are investing in data centres and supporting

network infrastructure.

As an economic development agency with the primary objective of job creation, business

development and the provision of enabling infrastructure Dube iConnect has made the strategic

decision to focus a large part of its business on offering IT services in the cloud. The last two years

of operations have demonstrated and supported this trend. Through these two years of operations

certain key trends have emerged in which Dube iConnect can play a role in the market. Some

key market drivers in this space are:

King III along with other regulatory requirements has put a lot of pressure on businesses to

ensure continuous operations of their businesses. This has resulted in a strong demand for

Disaster Recovery and Business Continuity services.

The capital cost of hardware and software has resulted in many companies re-evaluating

these costs in line with business priorities. This has resulted in the renting of both IT

infrastructure and software services.

Continuous change in the ICT environment has put an undue burden on businesses in terms

of staffing of IT to ensure compliance with the latest standards and software patches. IT

departments are typically expensive, resulting in the outsourcing of these services.

The above factors have resulted in Dube iConnect re-evaluating its focus and this has resulted in

Dube iConnect focusing on the following:

Infrastructure and software as a service.

Disaster recovery services.

Hosting services for key cloud based business applications such as ERP.

It is expected that the trend towards Cloud will continue and will gain tremendous movement by

2015 with a large number of companies leveraging services in the Cloud. Dube iConnect’s current

investments in data centre real-estate and infrastructure is sufficient to support growth for the next

two to three years within its existing data centre. However, beyond that iConnect will look to


53

expand both its real-estate and infrastructure capacity. In order to best position Dube iConnect to

leverage our growing brand and this global Cloud trend, a second larger data centre will be built

that will meet future demand and position Dube iConnect as a strategic regional service provider

in the market. Budgets and targets have been aligned with this objective.

Another critical role played by Dube iConnect is supporting on-site customers with voice and

broadband services, and ensuring that all new developments are incorporated into the network.

The programme and budgets allocation for Dube iConnect support this and are aligned with

expected property development targets.

In support of these objectives the ICT programme is structured into 2 sub-programmes:

o Sub-Programme 5.1 Commercial

o Key functions include:

ICT Strategy and Planning of new commercial services

Generate revenue from commercial ICT services provisioned by iConnect in

line with set revenue targets.

Manage and implement an ICT commercial plan

Generate and submit ICASA compliance reports; ensure regulatory and

policy compliance

Reselling of core (voice and data) and VAS/Data Centre Cloud services

Work with marketing sub-programme to identify, plan and implement

campaigns, sales plans and marketing collateral.

o Sub-Programme 5.2 Operations

o Key functions include:

Operations planning and IT Maintenance

Resource schedules created and signed off

Maintenance schedules created and signed off

Generate and maintain usage policies

Generate and maintain standard operational procedures

Manage licence utilization in the data centre

IT infrastructure planning for capacity, resilience, optimization, flexibility

Ensure systems are compliant with vendor updates

Ensure customer compliance with policies

Manage voice service

Work with service providers to manage services

Ensure ongoing upgrades to voice gateway and related

communication equipment

Manage uptime of system

Work with service providers to ensure uptime of systems

Ensure the system is aligned to latest vendor upgrades

Ongoing evaluation of existing environment and capacity planning.

Manage the procurement of services, upgrades and new products

To execute these functions, DTPC has installed a fully reticulated fibre optic network and IT

platform which serves all property development zones, sites and buildings within the precinct,


54

offering the most advanced metro Ethernet network in the country. These services are provided

under ICASA ECS and ECNS licenses, allowing Dube iConnect to provide cost competitive voice

and broadband services through wholesale reseller agreements with Tier 1 service providers,

including Neotel, Internet Solutions, MetroConnect and Telkom.

This network investment has been expanded to include two tier-2 data centres that utilise the

latest generation of virtualisation technologies to provide high availability business continuity

services. Dube iConnect now offers these data centre services (Value Added Services) to on-site

and off-site users at highly cost competitive rates.

This full suite of ICT services provides the DTP real-estate environment the ability to offer with

investors, developers, tenants and users an unparalleled and proactive set of turnkey IT solutions.

Dube iConnect’s bundle of services aims to give businesses locating at DTP a cost and operating

edge which includes:

An operationally tested and proven environment deploying some of the most

advanced technologies;

Infrastructure investment architected to scale on demand;

Highly available IT environment with multiple levels of redundancy and failover

capability;

Onsite international gateway(s) that scale on demand;

Highly skilled team of onsite and offsite resources to support the environment;

Highest levels of security, integration and on-site support;

Geographically well positioned DR location;

Highly available completely redundant environment to cost effectively provision

services;

Data is replicated in real time; and

Strategic partnerships with various ICT telecom companies and through these

partnerships DTP can ensure the highest quality of service management

interconnectivity.

Dube iConnect, through its operations and commercial sub-programmes, focuses on providing

sustainable, high quality commercial IT services in line with DTP’s property and business growth

ensuring ongoing capacity planning and technology advancement. Programme 5’s structure,

strategic goal, and strategic objectives are summarised below.


PROGRAMME 5: ICT Strategic goal: To establish, enhance and operate an ICT platform that delivers value added

services

SUB-PROGRAMME 5.1:

COMMERCIAL


To develop and provision cost competitive and reliable commercial ICT

services to DTPC clients

SUB-PROGRAMME 5.2:

OPERATIONS


To operate and maintain Dube iConnect IT infrastructure and

commercial IT services


55


TABLE 32: PROGRAMME 5 ICT – STRATEGIC OBJECTIVE’S ANNUAL TARGETS FOR 2014/15

PERFORMANCE

INDICATOR

5-YEAR

STRATEGIC

PLAN

TARGET

AUDITED/ACTUAL

PERFORMANCE

ESTIMATED


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17


Strategic Objective - To develop and provision cost competitive and reliable commercial ICT services to DTPC clients

5.1

% margin

achieved on

voice services

12% n/a - new indicator 10% 10% 11% 12%

5.2 Data Centre

revenue R4m n/a - new indicator R550 000 R950k R1.4m R2m


Strategic Objective - To operate and maintain Dube iConnect IT infrastructure and commercial IT services

5.3

% uptime of

commercial IT

services

99% n/a - new

indicator 99.5% 99% 99% 99% 99%


As part of DTPC’s drive to continuously improve its reporting on performance indicators, the

following KPIs have been removed (compared to the 2013/14 APP).

TABLE 33: PROGRAMME 5 ICT – STRATEGIC OBJECTIVE’S ANNUAL TARGETS FOR 2014/15

PERFORMANCE

INDICATOR

5-YEAR

STRATEGIC

PLAN

TARGET

AUDITED/ACTUAL

PERFORMANCE

ESTIMATED


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17


Strategic Objective - To develop and provision cost competitive and reliable commercial ICT services to DTPC clients

5.1

No. of individual

commercial IT

services

contracted

(cumulative)

28 100 28 34 80 100 100 n/a

7.1.1.1 NOTES

APP 2013/14 KPI 5.1:

New indicator developed to enhance reporting on performance information

New indicator developed to enhance reporting on performance information. It is important to provision and

continually develop new ITC commercial services to ensure that customers are experiencing value from using the DTP IT

platform as well as the broader DTP development. In order to achieve this, tenants/developer/customers will be

constantly engaged to evaluate the quality of existing services and to identify new service requirements.


56

Indicator removed to enhance reporting on performance information by introducing a new

indicator i.e. percentage margin on voice services. Latest technology ITC platform supporting the

provision of broadband, voice and data centre services are aimed to improve the operations and

cost competitiveness of companies located at DTP and off-site users. Broadband is purchased in

bulk and spare capacity has to be maintained continually to ensure full redundancy of the

environment. At the same time the sales of broadband must be optimized at all times to ensure

that service is commercially sustainable.


Table below lists the programme performance indicators per sub-programme:

TABLE 34: PROGRAMME 5 ICT - PROGRAMME PERFORMANCE INDICATORS PER SUB-PROGRAMME

PROGRAMME

PERFORMANCE

INDICATOR (PPI)

AUDITED/ACTUAL

PERFORMANCE

ESTIMATED


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17


5.4

% of spare

broadband

capacity

maintained to

achieve optimal

commercial

return

n/a - new indicator 35% 30% 20% 10%


5.5

Resolution of all

faults logged

within SLA

specification

2011/2012 = 99% 99% 95% 95% 95% 95%



removed:

TABLE 35: PROGRAMME 5 ICT - PROGRAMME PERFORMANCE INDICATORS PER SUB-PROGRAMME

PROGRAMME PERFORMANCE

INDICATOR (PPI)

AUDITED/ACTUAL

PERFORMANCE

ESTIMATED


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17


5.3

No. of new commercial

value added service

(VAS) solutions

developed/commissioned

2011/2012 = 6 4 2 2 2 n/a

New indicator developed to enhance reporting on performance information


57

5.4 No. of IT partnerships

established 1 4 4 4 5 5 n/a


5.6 No. of new locations

serviced

2011/2012 =

Potential

locations

identified

4 3 4 5 n/a

7.2.1.1 NOTES

APP 2013/14 PPI 5.3:

Indicator removed to enhance reporting on performance information by introducing a new

indicator i.e. percentage of spare broadband capacity maintained to achieve optimal

commercial return. Latest technology ITC platform supporting the provision of broadband, voice

and data centre services aimed to improve the operations and cost competitiveness of

companies located at DTP and off-site users. Broadband is purchased in bulk and spare capacity

has to be maintained continually to ensure full redundancy of the environment. At the same time

the sales of broadband must be optimized at all times to ensure that service is commercially

sustainable.

APP 2013/14 PPI 5.4:


APP 2013/14 PPI 5.6:





Commercial

o Grow the iConnect customer and revenue base, particularly in the provision of Hosting and

DR services (Data Centre)

o Develop partnerships with bulk voice and data service providers in order to cost effectively

meet all customer requirements as the precinct user base expands

o Customer management and retention programme

o Evaluation of service costs and pricing to ensure Dube iConnect is market competitive and

offers value for money

Operations

o Complete detailed plan and implementation programme for the new data center based

in the Air Chefs building.


58

o Complete programme of works for upgrade and expansion of data centre and network

infrastructure and resources in line with business growth and tier 3 requirements.

o Ensure that staff are trained and certified in all relevant technologies.

o Management and optimization of operating procedures to improve the management of

the IT environment (network and data centre) on a proactive basis.

o Continuous optimization and updating (software patches) of the IT environment to ensure

most consistent and effective delivery of services.





TABLE 36: PROGRAMME 5 ICT - QUARTERLY TARGETS FOR 2014/15


PROGRAMME

REPORTING

PERIOD

ANNUAL

TARGET

2014/15

QUARTERLY TARGETS

1st 2nd 3rd 4th

5.1 % margin achieved on

voice services Commercial Quarterly 10% 10% 10% 10% 10%

5.2 Data Center revenue Commercial Quarterly R950k R180k R220k R250k R300k

5.3 % uptime of commercial

IT services Operations Quarterly 99% 99% 99% 99% 99%

5.4

% of spare broadband

capacity maintained to

achieve optimal

commercial return

Commercial Quarterly 30% 30% 30% 30% 30%

5.5

Resolution of all faults

logged within SLA

specification







59


Programme

ADJUSTED

APPROPRIATIO

N

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

IT Platform 12,610,920 - - - -

Operations - 91,855,868 24,277,410 24,260,314 26,518,820 29,281,707 31,335,025

Commercial 592,912 744,360 394,216 -449,053

SUBTOTAL 12,610,920 91,855,868 24,277,410 24,853,226 27,263,180 29,675,923 30,885,972

Rev enue 2,571,792 1,780,310 2,018,050 2,411,500 3,804,320 6,349,176




Communication 1,415,675 - - - - -

Computer serv ices 22,362 10,778 127,716 198,000 1,735,000 1,839,100 1,936,572

Consultants, contractors and special serv ices 1,660,780 11,596,294 1,541,013 525,600 858,160 389,576 410,224


Operating Leases 681 2,023 - - - - -


Adv ertising - 21,499 105,653 490,000 830,000 900,000 950,000

Training - - 33,288 380,923 401,874 425,986 448,563



Building and other fixed structures - - - - 5,900,000 - -

Machinery and equipment 9,443,926 77,200,959 15,252,020 11,918,000 9,925,000 18,000,000 19,000,000


Software and other intangible assets - - 1,322,040 4,350,000 1,000,000 2,000,000 2,500,000


TOTAL 12,610,920 91,855,868 24,277,410 24,853,226 27,263,180 29,675,923 30,885,972


ICT


The focus of the ICT programme is on providing improved data-centre services, such as disaster

recovery services and hosting of key cloud-based applications, as well as continuing to provide

support to on-site customers with voice and broadband services. The budget allocated for

capital assets reflects this focus on increasing data-centre capacity and capability, while the

budget for maintenance, repairs and running costs includes funds for voice and broadband.

The maintenance, repairs and running costs budget includes significant increases in the outer

years of the MTEF period as additional buildings are expected to come on board. This is also

reflected in the revenue increases projected over the same period.


60

8 PROGRAMME 6: DEVELOPMENT PLANNING AND INFRASTRUCTURE

Programme 6 is pivotal to DTPC’s infrastructural and developmental rollout. It is the backbone for

the development of this urban establishment and its principle objective is to deliver and improve

infrastructural facilities, and help create a durable public asset and quality oriented-service within

DTP. The overall purpose of Programme 6 (in its new form) is to (1) plan for and create an

enabling environment for the vision of the Dube Aerotropolis to be realised (which includes

working closely with various stakeholders in acknowledgement of the potential of the project to

become a national Special Economic Zone (SEZ) ) and (2) deliver and improve infrastructural

facilities, and help create a durable public asset and quality oriented-service within DTP. It

encompasses the following sub-programmes:

Sub-Programme 6.1 Planning: A component of the planning sub-programme is regional planning

which essentially focuses on the establishment and implementation of an aerotropolis as a spatial

planning tool in order to guide development of the regional area in the future. The concept of an

aerotropolis argues that a city can benefit substantially through structuring the use of land

surrounding an airport in such a manner that the efficiency of the spatial dynamics of such an

area is increased. As mentioned above an airport presents obvious opportunities for businesses to

tie into global markets and ensuring that quick and easy access to and from the airport for

business and passengers is of critical importance. In addition an airport also acts as an attractor

for a range of aviation and non-aviation related activities, including inter alia offices, retail, leisure,

service industries, etc., which offers opportunities that can stimulate economic growth. In order to

realize the implementation of the aerotropolis as a planning tool the programme focuses on the

development of measures aimed at implementing and institutionalizing a regional planning

framework as well as make strategic recommendations concerning the implementation of

infrastructure to create the platform for the actualization of the model.

Sub-Programme 6.2 Environment: The Environmental sub-programme is aimed at ensuring that all

development planning practices are sustainable in nature through minimizing and preventing

environmental impacts by setting policy related objectives and targets. It also recognizes the

benefits and importance of developing innovative measures to ensure the long term protection of

the environment. It gives the company’s operations and products a competitive advantage and

production efficiency in the modern and global economy through benchmarking international

best practice.

Sub-Programme 6.3 Infrastructure and Sub-Programme 6.4 Development: These sub-programmes

provide a service to other DTPC Programmes through the provisioning of infrastructure

requirements, most importantly for the DTP precinct. The required public utilities and infrastructure

to enable the precinct to operate efficiently and effectively is the responsibility of these Sub-

Programmes. The following three categories define the strategic role and responsibility of Sub-

Programmes 6.3 and 6.4:

Public Infrastructure - Roads, water, energy, sewers systems, public transport infrastructure,

etc.

Programme 6’s involvement in a SEZ steering committee will assist in exploring the institutional arrangements pertaining

to the zone, as well as influencing the demarcation of spatial boundaries, incentive packages and the overall

development model.


61

DTPC’s own property developments - Ranges from DTPC’s buildings for own utilization to

properties built for rentals by third parties,

Third party owned properties constructed on DPTC’s land - Programme 6’s role in each of

the categories varies as defined by the needs of the category.

Once any infrastructural need has been identified (under any of the three categories above),

scoped by the operational programmes (i.e. Dube AgriZone, Property, ICT and/or Cargo and Air

Services) or any other programme relating to categories one and two, planning and

environmental approvals will be handled by sub-programmes 6.1and 6.2. Sub-Programmes 6.3

and 6.4 will then develop the required infrastructure and hand it over to the respective

programme once completed. Programme 6’s structure, strategic goal, and strategic objectives

are summarised below.

TABLE 38: PROGRAMME 6 - STRUCTURE AND OBJECTIVES

PROGRAMME 6: DEVELOPMENT PLANNING AND INFRASTRUCTURE Strategic goal: To plan and enable the development of a sustainable aerotropolis

Strategic goal: To provide infrastructure and service the development needs of DTP

SUB-PROGRAMME 6.1:

PLANNING


To institutionalise a regional planning framework facilitating the

establishment of the aerotropolis

To ensure the availability of land for future expansion

To acquire strategic land parcels for future development activities

To provide strategic recommendations guiding the implementation of

the Aerotropolis

SUB-PROGRAMME 6.2:

ENVIRONMENT


To ensure that the Aerotropolis is environmentally sustainable

SUB-PROGRAMME 6.3:

INFRASTRUCTURE


To adequately plan for DTP’s public infrastructure requirements

To achieve greater infrastructure alignment with other stakeholders

To procure, manage and monitor DTP infrastructure provisioning

SUB-PROGRAMME 6.4:

DEVELOPMENT


To provide technical support to all DTPC’s Programmes

To develop the DTPC infrastructure plan and manage roll-out of

services


62


TABLE 39: PROGRAMME 6 DEVELOPMENT PLANNING AND INFRASTRUCTURE - STRATEGIC OBJECTIVE’S ANNUAL TARGETS FOR 2014/15

PERFORMANCE

INDICATOR

5-YEAR

STRATEGIC

PLAN TARGET

AUDITED/ACTUAL

PERFORMANCE

ESTIMATED


2010/

11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

SUB-PROGRAMME 6.1: PLANNING

Strategic objective - To institutionalise a regional planning framework facilitating the establishment of the aerotropolis

6.1

% completion

and

institutionaliza

tion of the

regional plan

Structure

and plan

put in place

to

implement

the

aerotropolis

concept

Initial

region

al plan

compl.

Plan

100%

com

plete

Representa

tion for an

institutional

authority

made to

governmen

t -

incomplete

Institutional

authority

put into

place

Establish an

institutional

structure

Establish

the

impleme

ntation

plan

Implemen-

tation

Strategic objective - To ensure the availability of land for future expansion

6.2

No. of land-use

rights

acquisitions

and

environmental

authorisations

obtained

6 2011/2012 = 0 1 1 1 1 1

Strategic objective - To acquire strategic land parcels for future development activities

6.3

No. of

hectares

acquired

(based on

signed

agreements)

155 ha 57 ha 172

ha 109 ha 30 ha 90 ha 80 ha 90 ha

Strategic objective - To provide strategic recommendations guiding the implementation of the Aerotropolis

6.4

No. of reports

on Strategic

Recommen-

dations

8 n/a 1 2 1 1 1

In the 2013/14 APP, the target was a “review”. However, it has since been updated to enhance reporting on

performance information.

In the 2013/14 APP, the target was a “review”. However, it has since been updated to enhance reporting on

performance information.

Adjusted upwards from 30 ha in the 2013/14 APP; informed by the Land Acquisition Strategy.

Adjusted upwards from 30 ha in the 2013/14 APP; informed by the Land Acquisition Strategy.

Adjusted downwards from 2 (two) in the 2013/14 APP. As the project matures, there are fewer options to implement.

Adjusted downwards from 2 (two) in the 2013/14 APP. As the project matures, there are fewer options to implement.


63

SUB-PROGRAMME 6.2: ENVIRONMENT

Strategic objective - To ensure that the Aerotropolis is environmentally sustainable

6.5

No. of internal

state of the

Environment

Reports

5 2011/2012 = 1 1 1 1 1 1

SUB-PROGRAMME 6.3: INFRASTRUCTURE

Strategic objective - To adequately plan for DTP’s public infrastructure requirements

6.6

No. of public

facilities

undertaken

5 n/a - new

indicator 0 2 0 1 2

Strategic objective - To achieve greater infrastructure alignment with other stakeholders

6.7

No. of

engagements

with other

stakeholders

12 n/a - new

indicator 4 3 3 2 2

Strategic objective - To procure, manage and monitor DTP infrastructure provisioning

6.8

No. of

construction

projects

undertaken

13 2011/2012 = 2 0 5 3 2 2

SUB-PROGRAMME 6.4: DEVELOPMENT

Strategic objective - To provide technical support to all DTPC programmes

6.9

No. of projects

scoped and

designed

12 2011/2012 = 1 3 5 2 2 2

Strategic objective - To develop the DTPC infrastructure plan and manage roll-out of services

6.10

Adequate

infrastructure

planning and

delivery for

DTP’s

development

needs

(measured

against DTPC

Plan for each

particular

year)

90%

complet

e

against

plan

2011/2012 =

Infrastructure plan

completed

16.5%

comple

te

against

plan

80%

complete

against

plan

80%

complete

against

2014/15

updated

plan

80%

complete

against

2015/16

updated plan

80%

complet

e against

2016/17

updated

plan

Adjusted upwards from 2 (two) in the 2013/14 APP. Increase due to increased demand for construction projects to be

undertaken.

Adjusted downwards from 90% in the 2013/14 APP due to “plan” now being updated annually.

In the 2013/14 APP, the target was “90% complete against plan”. “Plan” has now been further defined as “2014/15

updated plan” to enhance reporting on performance information.

Adjusted downwards from 90% in the 2013/14 APP.


64


TABLE 40: PROGRAMME 6 DEVELOPMENT PLANNING AND INFRASTRUCTURE - PROGRAMME PERFORMANCE INDICATORS PER SUB-

PROGRAMME

PROGRAMME

PERFORMANCE

INDICATOR (PPI)

AUDITED/ACTUAL

PERFORMANCE

ESTIMATED


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

PROGRAMME 6.1: PLANNING

6.11

No. of layout

diagrams/urban

design

frameworks

completed

2 1 2 1 1 1 1

PROGRAMME 6.2: ENVIRONMENT

6.12

% of

compliance

with EA -

independent

audit results

90% 93.5% 98% 90% 90% 90% 90%

6.13

No. of hectares

of land offset as

per site wide

rehabilitation

plan

2011/2012 =

257.47 ha 357 ha 100 ha

Plantation:

50ha

Alien

clearing:

100ha

Plantation:

60ha

Alien clearing:

As per new

development

Offset as per

new

development

SUB-PROGRAMME 6.3: INFRASTRUCTURE

6.14

% deviation

from initial

budget

2011/2012 = 0% 0% 10% 10% 10% 10%

6.15

No. of monthly

progress

meetings

conducted


6.16

% of

construction

(infrastructure

and

development)

projects with

10% of budget

allocated to


The target in the 2013/14 APP was 60 hectares. However, a distinction is now made between (1) plantation and (2)

alien clearing to enhance reporting on performance information.

The target in the 2013/14 APP was “offset as per new development”. However, a distinction is now made between (1)

plantation and (2) alien clearing to enhance reporting on performance information.

New indicator developed to enhance reporting on performance information. Infrastructure provision is vital to the

future expansion of DTP. This indicator is concerned with the monitor and control of the delivery of infrastructure projects.


65

enterprise

development

6.17

% of

infrastructure

and

development

projects with

5% of key

identified

EPCM services

allocated to

internship



6.18

% deviation

from

programme

timelines

2011/2012 = 50% 25.6% 15% 15% 15% 15%

6.19

No. of monthly

design co-

ordination

meetings

conducted


6.20

No. of projects

with user

requirements

and concept

drawings

signed off by

user

departments




removed:

New indicator developed to enhance reporting on performance information and to comply with sections 5(2) of the

Construction Industry Development Board Act, 2000 for Indirect Targeting for Enterprise Development through DTPC’s

Construction Works Contracts.

New indicator developed to enhance reporting on performance information and to comply with the Construction

Industry Development Board Framework for Developing Skills through Construction Works Contracts.

New indicator developed to enhance reporting on performance information. This indicator is concerned with the

monitor and control of the design phase which is an input to construction and impacts the final delivery of infrastructure

projects.

New indicator developed to enhance reporting on performance information. This indicator addresses the monitoring

and controlling of the design phase to ensure sign-off of the concept drawings which is an input to the detailed design

drawings


66


PROGRAMME

PERFORMANCE

INDICATOR (PPI)

AUDITED/ACTUAL

PERFORMANCE

ESTIMATED


2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17


6.16

% provisioning

of the Watson

highway link

2011/2012 = 0% 21% 100%

Complete

construction

(100%)

n/a n/a

8.2.1.1 NOTES

APP 2013/14 PPI 6.16:

Infrastructure and development currently have approximately 15 live projects at various stages

from feasibility for execution over the next 2 years. Therefore measuring only one of 15 projects is

not a clear reflection of budget allocation and resource time expended.




Planning

o Acquisition of land use rights relating to the submission of the rezoning application for

TradeZone 2 for approval.

o Planning for SupportZone 2 and AgriZone 2 will continue as the EIA process draws to a

conclusion.

o EIA process and preliminary planning for Cottonlands will continue. This will include

preliminary engineering design, refining the planning concept, and commencing with the

EIA process.

o Regional planning and strategic planning projects, as well as working with the authorities to

further refine and implement the aerotropolis concept.

Environment

o KSIA ROD amendment application will continue during this financial year,

o Implementation of the Environment Strategy and policy will be effected,

o On-going Environmental compliance monitoring,

o Scoping of green projects will continue

Infrastructure

o Construction of Watson highway link road will be finalized during this period,

Delays in construction are hampering progress and early indications are that this target will not be met.


67

o Construction of the Guardhouses and Dube TradeZone 1 road alignment will be

undertaken

Development

o Construction of the following facilities will be carried out: Gift of the Givers warehouse,

Facilities Maintenance, Air Chefs Catering facilities, Tradehouse & Cargo Terminal parking.





TABLE 42: PROGRAMME 6 DEVELOPMENT PLANNING AND INFRASTRUCTURE - QUARTERLY TARGETS FOR 2014/15


PROGRAMME

REPORTIN

G PERIOD

ANNUAL

TARGET

2014/15

QUARTERLY TARGETS

1st 2nd 3rd 4th

6.1

% completion and

institutionalization

of the regional

plan

Planning Bi-Annual

Establish

an

institution

al

structure

Plan Establish

6.2

No. of land-use

rights acquisitions

and

environmental

authorisations

obtained

Planning Annual 1 To be measured in the 4th Quarter

6.3

No. of hectares

acquired (based

on signed

agreements)

Planning Annual 90 ha To be measured in the 4th Quarter

6.4

No. of reports on

Strategic

Recommen-

dations


6.5

No. of internal

state of the

Environment

Reports

Environment Annual 1 To be measured in the 4th Quarter

6.6

No. of public

facilities

undertaken

Infrastructure Quarterly 0 0 0 0 0

6.7

No. of

engagements with

other stakeholders


6.8

No. of

construction

projects

undertaken

Infrastructure Bi-annual 3 1 2

6.9

No. of projects

scoped and

designed

Development Bi-annual 2 1 1


68

6.10

Adequate

infrastructure

planning and

delivery for DTP’s

development

needs

Development Bi-annual

80%

complete

against

2014/15

updated

plan

40% 80%

6.11

No. of layout

diagrams/urban

design frameworks

completed


6.12

% of compliance

with EA -

independent

audit results

Environment Quarterly 90% 90% 90% 90% 90%

6.13

No. of hectares of

land offset as per

site wide

rehabilitation plan

Environment Quarterly

Plantation

: 50ha

Alien

clearing:

100ha

Plantation

: 10 ha

Alien

clearing:

25 ha

Plantation

: 15 ha

Alien

clearing:

25 ha

Plantation

: 15 ha

Alien

clearing:

25 ha

Plantation

: 10 ha

Alien

clearing:

25 ha

6.14 % deviation from

initial budget Infrastructure Quarterly 10% max 10% max 10% max 10% max 10% max

6.15

No. of monthly

project progress

meetings

conducted


6.16

% of construction

(infrastructure and

development)

projects with 10%

of budget

allocated to

enterprise

development

Infrastructure Annual 50% To be measured in the 4th Quarter

6.17

% of infrastructure

and development

projects with 5% of

key identified

EPCM services

allocated to

internship

Infrastructure Annual 30% To be measured in the 4th Quarter

6.18

% deviation from

programme

timelines

Development Quarterly 15% 15% 15% 15% 15%

6.19

No. of monthly

design co-

ordination

meetings

conducted

Development Quarterly 16 3 3 5 5

6.20

No. of projects

with user

requirements and

concept drawings

signed off by user

departments

Development Quarterly 4 1 1 1 1


69






Programme

ADJUSTED

APPROPRIATIO

N

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Planning 1,457,429 64,044,569 347,982,564 124,404,001 48,882,681 71,695,728

Env ironment - 6,979,207 1,064,734 11,720,022 11,185,361 12,615,786 16,773,359

EPC Contigencies 68,940,948 - - - - -

Regional Inv estment initiativ e 248,257 - - - - -

Infrastructure & Dev elopment 16,342,197 63,564,748 38,732,157 288,017,936 382,719,227 386,768,389

SUBTOTAL 69,189,205 24,778,833 128,674,051 398,434,743 423,607,298 444,217,694 475,237,476


Current payments 248,257 11,993,597 18,601,258 50,892,616 58,389,260 54,525,048 52,745,414


Goods and services of which: - - - - -

Communication - - - - - -

Computer serv ices - 5,726 2,000 100,000 - - -

Consultants, contractors and special serv ices 7,260,469 12,990,164 38,743,920 44,388,166 39,785,316 37,096,295

Maintenance Repairs and running costs - 723,506 497,804 409,080 9,598 10,418 11,011

Operating Leases - 595 - - - - -


Adv ertising - 42,998 267,967 920,000 680,000 690,000 725,000

Training - - - 425,841 581,874 616,040 648,690




Machinery and equipment - 366,433 - - - - -


Software and other intangible assets - - - 50,000 - - -

Land and subsoil assets - 54,134,348 330,492,127 99,818,038 24,546,499 54,292,062

TOTAL 69,189,205 24,778,833 128,674,051 398,434,743 423,607,298 444,217,694 475,237,476


Development Planning & Infrastructure


The budget for Programme 6 includes funds for the provision of relevant infrastructure and top

structures within the DTPC precinct. The construction of guardhouses and road realignment at

Dube TradeZone 1, parking at the TradeHouse and Cargo Terminal and construction for the

expansion of the AgriZone is expected to begin in 2014/15. Budget has been provided for these

and other projects (as detailed in Part C) under ‘payments for capital assets’.

23.6% of this programme’s budget has been allocated for the acquisition of an additional land

parcel in 2014/15. One of the key performance indicators for the Planning sub-programme is the

number of hectares acquired and, as such, budget has been provided for this in each year of the

MTEF as this will support the long term expansion and development of the DTPC precinct.

Refer to Part C for a detailed exposition of DTPC’s long term infrastructure capital plans.


70

9 PROGRAMME 7: DTP SPECIAL ECONOMIC ZONE (DTP SEZ)

In 2011, DTPC was alerted to the proposal to re-designate all industrial development zones (IDZ’s)

as special economic zones (SEZ’s). The policy paper prepared by the Department of Trade and

Industry (the DTI) outlined some of the reasons that the IDZ’s had failed, and recommended that

IDZ’s be converted to SEZ’s, along with additional areas within each province that exhibited the

potential to stimulate the economy and create jobs. The DTI then approached each province,

and asked the provincial authorities to nominate areas for SEZ status. DTP was put forward by KZN

DEDT as an area that would benefit from SEZ status and DTPC was then invited to interact, along

with KZN DEDT, on the proposed SEZ. SEZ’s have not been conceived as a stand-alone feature,

but are viewed as part of an overall regional development strategy.

Realising the strategic importance associated with DTP SEZ, DTPC is seeking to develop internal

capacity around SEZ’s and now wish to identify DTP SEZ as a separate programme in its APP

(Programme 7: DTP SEZ). In the 2013/14 APP, it had been indicated that planning and creating an

enabling environment for the vision of the Dube Aerotropolis included working closely with various

stakeholders in acknowledgement of the potential of the project to become a national SEZ.

Programme 6’s involvement in a national SEZ steering committee assisted in exploring the

institutional arrangements pertaining to the zone, as well as influenced the demarcation of spatial

boundaries, incentive packages and the overall development model. However, it is envisaged

that a separate programme will be required within DTPC as the process towards establishing and

managing DTP SEZ unfolds.

It is envisaged that Programme 7’s strategic goal, strategic objectives and performance indicators

will be finalised after the SEZ bill is passed into law as it will govern the institutional arrangements

and structure, as well as the funding, of the Programme. Regarding the legislative process

underway, the bill is currently nearing the final stages of being passed into law. It has been

through parliament, and is now with the National Council of Provinces (NOCP) for approval. After

this, the bill will return to parliament for final approval.


71

PART C: LINKS TO OTHER PLANS

10 LINKS TO THE LONG-TERM INFRASTRUCTURE AND OTHER CAPITAL PLANS

The bulk of the infrastructure plans revolve around the construction of specific elements of the

DTPC over the next 12 to 18 months specifically within Dube City and Dube TradeZone. This will

include the procurement of the necessary bulk infrastructure. Details of expenditure over the MTEF

period have been included in the relevant programmes above.

PROJECT NAME PROG

.

MUNIC

. OUTPUT

OUTCOME

MAIN

APPROPRI

ATION

ADJUSTED

APPROPRI

ATION

REVISED

ESTIMATE MEDIUM-TERM ESTIMATES

2010/11 2011/12 2012/13 2013/14 2014/15 2015/

16

2016/

17

New and replacement assets (R’000)

1

Watson

Highway

road link

6 Ethek. Road 200 000 40 000

2

Tongaat

outfall

sewer

6 Ethek. Sewer 30 000 0 35 000 5 000

3

Dube

TradeZone:

Warehouse

6 Ethek. Warehou

se 28 000

4

Dube

TradeZone:

Parking

6 Ethek. Parking

bays 2 290

5

Dube

TradeZone:

Canteen

6 Ethek. Building 2 900

6 Landscapi

ng 6 Ethek. 5 000 2 500

7

Maintenan

ce facilities

warehouse

6 Ethek. Warehou

se 5 600

8

Dube

TradeZone:

Warehouse

6 Ethek. Warehou

se 15 000

9

Dube

AgriZone:

Block B & E

6 Ethek. Greenho

use 35 000 0 25 000 30 000 45 000

10

Maintenan

ce, Repair,

Overhaul

6 Ethek. MRO

facility 69 000 0 15 000 20 000

11

Dube

AgriZone:

Block G

6 Ethek. Greenho

use 20 000 20 000

12

ITC:

Machinery

and

equipment

5 Ethek. ITC 10 210 18 600 11 918 9 925 18 000 19 000

13 Multi-Storey

Parkade 6 Ethek.

Parking

facilities

for the

support

zone

precinct

102 000 0 40 000 35 646 39 700


72

14 Expansion

of apron 6 Ethek. 10 000 25 000

15

Ushukela

infrastructur

e

6 Ethek. 20 000 17 500 35 000

16

Dube

AgriZone:

Block F

6 Ethek. 10 000 1 000 15 000 20 000

17 Data

centre 6 Ethek. 15 000 0 20 000 40 000 50 000

18 TradeZone

2 6 Ethek. 22 500 0 22 500 67 500 50 000

19 TradeHous

e 2 6 Ethek. 13 500 21 500

20 Support

precinct 1B 6 Ethek. 5 000 25 000

21 Support

precinct 2 6 Ethek. 18 000 30 000 37 000

22 R102

precinct 6 Ethek. 10 000

Maintenance and repairs (R’000)

1

Watson

Highway

road link

6 Ethek. Road to be handed over to eThekwini Municipality

2

Tongaat

outfall

sewer

6 Ethek. Sewer to be handed to eThekwini Municipality

3

Dube

TradeZone:

Parking

3 Ethek. Parking

bays 20 20 20 20

4

Dube

TradeZone:

Canteen

3 Ethek. Building 150 150 150 150

5 Landscapi

ng 4 Ethek. 2 750 6 886 4 365 4 626 4 872

Since most of these buildings and structures are not yet constructed, maintenance costs are estimated – roughly – as

0.5% of capital cost for the first few years of operation in some instances. This percentage is obviously expected to be

higher as buildings/structures age.


73

6

Maintenan

ce facilities

warehouse

3 Ethek. Warehous

e 28 28 28 28

7

ICT:

Equipment

maintenan

ce

5 Ethek. ICT 2 407 3 289 1 235 1 309 1 378

Upgrades and additions (R’000)

No major upgrades and additions needed in the next 5 years since actual construction has just come to an end

Rehabilitation, renovation and refurbishments (R’000)

No major refurbishment needed in the next 5 years since actual construction has just come to an end


74

PART D: APPENDICES

11 APPENDIX A: 60-YEAR MASTER PLAN

Dube TradePort is a long-term master-planned freight and passenger logistics development that

offers a high degree of certainty for future expansion over the next 60 years. It ensures that there

is enough capacity for the growth of bulk services and other demands as Dube TradePort

becomes a vital global supply link and trade centre. The first phase of the airport, Cargo Terminal,

TradeZone and commercial property development (Dube City) has been completed and is fully

operational.


75

12 APPENDIX B: STRATEGIC GOALS AND OBJECTIVES FOR KZN UNTIL THE YEAR 2030

PROVINCIAL STRATEGIC GOALS PROVINCIAL STRATEGIC OBJECTIVES

Job Creation

Unleashing Agricultural Potential

Enhance Industrial Development through Trade, Investment & Exports

Expansion of Government-led Job Creation Programmes

Promoting SMME, Entrepreneurial and Youth Development

Enhance the Knowledge Economy

Human Resource Development

Improve Early Childhood Development, Primary and Secondary Education

Support Skills alignment to Economic Growth

Promote Enhance Youth Skills Development & Life-Long Learning

Human and Community Development

Poverty Alleviation & Social Welfare

Enhancing Health of Communities and Citizens

Safeguard Sustainable Livelihoods & Food Security

Sustainable Human Settlements

Enhancing Safety & Security

Advance Social Cohesion

Promote Youth, Gender and Disability Advocacy & the Advancement of Women

Strategic Infrastructure

Development of Ports and Harbours

Development of Road & Rail Networks

Development of ICT Infrastructure

Improve Water Resource Management

Develop Energy Production Capacity

Responses to Climate Change

Increase Productive Use of Land

Advance Alternative Energy Generation

Manage pressures on Biodiversity

Disaster Management

Governance and Policy

Strengthen Policy, Strategy Co-ordination and IGR

Building Government Capacity

Eradicating Fraud & Corruption

Promote Participative, Facilitative & Accountable Governance

Spatial Equity Actively Promoting Spatial Concentration

Facilitate Integrated Land Management &Spatial Planning

Source: KZN Provincial Planning Commission, Provincial Growth and Development Strategy, 2011,

Version 22 Final, 31 August 2011, Table 1, Page 11 of 154


76

13 APPENDIX C: 12 OUTCOMES OF GOVERNMENT

From the development focus of the MTSF the government has derived twelve outcome areas that

set the guidelines for more results-driven performance. The Cabinet Lekgotla held from 20 to 22

January 2010 adopted the following 12 Outcomes:

OUTCOME RELEVANT TO DTPC

Yes No

1 Improved quality of basic education. ×

2 A long and healthy life for all South Africans. ×

3 All people in South Africa are and feel safe. ×

4 Decent employment through inclusive economic growth.

5 A skilled and capable workforce to support an inclusive growth path. ×

6 An efficient, competitive and responsive economic infrastructure network.

7 Vibrant, equitable and sustainable rural communities with food security for all. ×

8 Sustainable human settlements and improved quality of household life. ×

9 A responsive, accountable, effective and efficient local government system. ×

10 Environmental assets and natural resources that are well protected and continually

enhanced.

11 Create a better South Africa and contribute to a better and safer Africa and World. ×

12 An efficient, effective and development oriented public service and an empowered,

fair and inclusive citizenship. ×

14 APPENDIX D: MEDIUM-TERM STRATEGIC FRAMEWORK

CUSTODIAN: The Presidency DATE OF ISSUE: July 2009 TIMEFRAME: 2009 - 2014

FIVE DEVELOPMENT OBJECTIVES (STRATEGIC OBJECTIVES):

1 Halve poverty and unemployment by 2014

2 Ensure a more equitable distribution of the benefits of economic growth and reduce inequality

3 Improve the nation’s health profile and skills base and ensure universal access to basic services

4 Build a nation free of all forms of racism, sexism, tribalism and xenophobia

5 Improve the safety of citizens by reducing incidents of crime and corruption

STRATEGIC PRIORITIES RELEVANT MDGS RELEVANT TO DTPC

1 Strategic Priority 1: Speeding up growth and transforming the

economy to create decent work and sustainable livelihoods MDG 1, MDG 2, MDG 3, MDG 8

2 Strategic Priority 2: Massive programme to build economic and

social infrastructure MDG 1, MDG 3, MDG 8

3 Strategic Priority 3: Comprehensive rural development strategy

linked to land and agrarian reform and food security MDG 1, MDG 2, MDG 7 ×

4 Strategic Priority 4: Strengthen the skills and human resource base MDG 2 ×

5 Strategic Priority 5: Improve the health profile of all South Africans MDG 4, MDG 5, MDG 6 ×

6 Strategic Priority 6: Intensify the fight against crime and corruption MDG 2, MDG 3 ×

7 Strategic Priority 7: Build cohesive, caring and sustainable

communities MDG 2, MDG 3, MDG 7 ×

8 Strategic Priority 8: Pursuing African advancement and enhanced

international cooperation MDG 8

9 Strategic Priority 9: Sustainable resource management and use MDG 2, MDG 3, MDG 7


77

10

Strategic Priority 10: Building a developmental state, including

improvement of public services and strengthening democratic

institutions

MDG 1, MDG 2, MDG 3, MDG 8 ×

15 APPENDIX E: MILLENNIUM DEVELOPMENT GOALS

CUSTODIAN:

United Nations

Development Programme

(UNDP)

DATE OF ISSUE: Signed by 189 countries in September

2000 TIMEFRAME: 2000 - 2015

MILLENNIUM DEVELOPMENT GOALS:

1 To eradicate extreme poverty and hunger 5 To improve maternal health

2 To achieve universal primary education 6 To combat HIV/AIDS, malaria and other diseases

3 To promote gender equality and empower women 7 To ensure environmental sustainability

4 To reduce child mortality 8 To develop a global partnership for development

16 APPENDIX F: DTPC ALIGNMENT WITH PGDS AND PGDP

The following table provides a general overview of the particular objectives and primary (and

secondary) indicators identified in the KZN PGDS (and further articulated in the KZN PGDP) that

relate specifically to DTP and the efforts of DTPC. The list of objectives and indicators below is by

no means exhaustive and only indicative of those that relate in one way or another to DTPC.

TABLE C.1: PROVINCIAL STRATEGIC GOALS, OBJECTIVES AND INDICATORS THAT RELATE TO DTPC’S KEY DELIVERY AREAS (SUMMARY)

PROVINCIAL

STRATEGIC

GOAL

OBJECTIVES INDICATORS DTPC ALIGNMENT (RELATING TO KEY DELIVERY AREAS)

Strategic

Goal 1:

Job Creation

Unleash

agricultural

potential

Total employment in the agricultural

sector

Relates to Dube AgriZone i.e. volume of produce at

AgriZone as well as employment created in this

particular precinct.

Value of agricultural contribution to the

provincial economy

Hectares of land under agricultural

production

Enhance

sectoral

development

through

trade and

investment

Total employment within all sectors

excluding primary agriculture As indicated before, DTPC is focused on job creation

and economic development. DTPC monitors the

number of (temporary and permanent) direct jobs

created on-site on a quarterly basis. Total value of provincial economy

excluding primary agriculture

Total value of exports generated from

within KZN

DTPC’s Air Services Strategy focuses on increasing direct

international and regional air services to and from KZN

which lead to increased cargo throughput (i.e. exports)

and passenger arrivals/departures. DTPC measures (1)

number of international and regional routes secured

and (2) tonnage throughput from Dube Cargo Terminal.

Total value of foreign and domestic

tourism expenditure in the Province

Strategic

Goal 4:

Strategic

Infrastructure

Development

of airports

Amount of investment in Dube TradePort

One of DTPC’s strategic objectives is to facilitate private

sector investment on land controlled by DTPC. DTPC

measures private sector investment committed per

annum.

Volume of cargo handled at Dube Cargo

Terminal

As indicated before, DTPC measures tonnage

throughput from Dube Cargo Terminal.

Development

of ICT Number of Digital Community Hubs

Dube iConnect offers the most advanced metro

Ethernet network in South Africa, is a dedicated and

KZN Provincial Planning Commission, Provincial Growth and Development Plan, February 2012.


78

infrastructure

Number of POPs (points of presence)

world-class telecommunications and IT platform which

digitally links members of the DTP business community

with each other, their respective global partners and

the rest of the world.

Strategic

Goal 5:

Environmental

Sustainability

(Response to

climate

change)

Increase

productive

use of land

Hectares of land rehabilitated annually

One of DTPC’s strategic goals is to plan and enable the

development of a sustainable aerotropolis i.e. to ensure

that the aerotropolis is environmentally sustainable.

DTPC measures - for instance - the number of hectares

of land offset as per the site-wide rehabilitation plan.

Advance

alternative

energy

generation

and reduce

reliance on

fossil fuels

Units of energy produced commercially

through alternative energy generation

Units of energy saved through energy

efficiency interventions

TABLE C.2: PROVINCIAL STRATEGIC GOALS, OBJECTIVES AND INDICATORS THAT RELATE TO DTPC’S KEY DELIVERY AREAS (DETAILS)

PROVINCIAL

STRATEGIC

GOAL

OBJECTIVES

(AS PER THE

KZN PGDP)

INDICATORS (AS

PER THE KZN

PGDP)

DTPC ALIGNMENT

Strategic

Goal 1:

Job

Creation

Unleash

agricultural

potential

Total

employment in

the agricultural

sector

Dube AgriZone is stimulating a move towards more high-value production in the

Province, and acts as an incubator for new producers by providing training,

mentoring, technical assistance and other support services. This area provides

facilities geared towards the active promotion of agricultural products with a

short shelf-life and which require being flown to their various destinations

immediately after harvesting in order to protect and maintain quality. The

proximity of the AgriZone to the airport and Cargo Terminal export point plays a

significant role in reducing grower logistics and transport costs. Linked to the

AgriZone is vital cold chain infrastructure and services providing for an

uninterrupted process from producer to importer. These state-of-the-art climate-

controlled facilities ensure year-round, high-yield production and a reduction in

environmental impact. Dube AgriZone utilisation uptake is aimed at local

farmers, emerging growers, co-operatives and international horticultural

companies.

Value of

agricultural

contribution to

the provincial

economy

Hectares of land

under agricultural

production

Enhance

sectoral

development

through

trade and

investment

Total

employment

within all sectors

excluding

primary

agriculture

Facilitating sustainable job creation, economic development and investment is

at the forefront of DTPC’s vision and mission. This can only be achieved through

facilitating greater levels of trade with growing global and regional markets in

the world. DTP’s role is to stimulate, facilitate and enable the growth of the air

logistics supply chain and secure the participation of private sector firms both

locally and internationally to take advantage of competitive offerings as users,

as tenants, as investors and as service providers. This enables the facilitation of

sustainable job creation, economic development and private sector investment.

Total value of

provincial

economy

excluding

primary

agriculture

Total value of

exports

generated from

within KZN

DTPC plays a multi-faceted role to both enable and drive the development of

the air logistics business. On the one hand it serves as master developer, guiding

and facilitating the appropriate uses of land for property developments, light

manufacturing and assembly, agricultural production and ensuring that

infrastructure planning and development keeps pace with growth. On the other

hand DTPC plays the role of an investor aimed at enabling strategic economic

investments from the private sector that support volume growth and

international connectivity enhancing the competitive position of the provincial

economy in the global supply chain.

Total value of

foreign and

domestic tourism

expenditure in

the Province

Although DTPC is not mandated to focus on increasing passenger throughput at

KSIA (this is the role of Airports Company South Africa (ACSA)), many of its

activities do have the (unintended) consequence of leading to increased

passengers arrivals and departures at KSIA. For instance, DTPC was instrumental

in securing the first international flight Dubai-Durban through Emirates airline. A

high-level assessment of increased international passenger arrivals at KSIA

indicated that a total of 3 736 additional employment opportunities have been

created and sustained since the introduction of direct international flights, while

the direct impact on the City’s economy has been estimated at R396,1 million

per annum.


79

Strategic

Goal 4:

Strategic

Infrastructure

Development

of airports

Amount of

investment in

Dube TradePort

Attracting long-term (private-sector) investment to DTP is central to many of

DTPC’s efforts. In spite of continued economic uncertainty during 2011/12,

investment and development interest in DTP remained encouragingly positive.

During this period, DTPC secured a R300-million private sector investment deal in

Dube TradeZone.

Volume of cargo

handled at Dube

Cargo Terminal

DTPC’s Cargo and Air Services (Programme 2) is a fundamental contributor to

DTPC achieving its vision as the leading global integrated and sustainable air

logistics platform in Southern Africa. Programme 2 is essentially responsible for

the development and sustainability of air connectivity and air cargo services to

key regional and global destinations that will be serviced by Dube AgriZone,

Dube TradeZone, Dube Aerotropolis and the wider KZN export-oriented

manufacturing base. During the 2011/12 financial year, Dube Cargo Terminal

handled a throughput of 5 000 tonnes of international and some 11 000 tonnes of

domestic cargo.

Development

of ICT

infrastructure

Number of Digital

Community Hubs

Dube iConnect provides state-of-the-art telecommunications, IT and value-

added services to the community of users in and around DTP, ensuring fast

global connections 24/7. It is committed to achieving the highest standards of

quality, performance, security and support. Dube iConnect, offering the most

advanced metro Ethernet network in South Africa, is a dedicated and world-

class telecommunications and IT platform which digitally links members of the

Dube TradePort business community with each other, their respective global

partners and the rest of the world. Such top level IT investment has helped

enable an environment capable of offering an unparalleled and proactive set

of turn-key IT solutions, providing DTP-based businesses with a competitive edge

(i.e. cheaper and faster IT services).

Number of POPs

(points of

presence)

Strategic

Goal 5:

Environmental

Sustainability

Increase

productive

use of land

Hectares of land

rehabilitated

annually In line with our commitment to constantly promoting improved sustainability,

DTPC measures, records and reports - through a State of the Environment Report

- its own environmental footprint. The intention is to demonstrably reduce its

environmental impact going forward. In this regard, the review period saw the

introduction of a number of interventions to give substance to our intent.

Initiatives already in place include the rehabilitation and restoration of

biodiversity, water demand management and conservation, solar photovoltaic

energy and rainwater harvesting, as well as carbon and energy audits. DTPC has

calculated our carbon footprint at 181 000 tonnes of carbon annually and look

forward to curbing emissions still further through the described interventions.

Advance

alternative

energy

generation

and reduce

reliance on

fossil fuels

Units of energy

produced

commercially

through

alternative

energy

generation

Units of energy

saved through

energy efficiency

interventions


80

APPENDIX D: LIST OF ABBREVIATIONS

ABBREVIATION DESCRIPTION

ACSA Airports Company South Africa

APP Annual Performance Plan

APR Annual Performance Review

AR Annual Report

AVSEC Aviation Security

CAA Civil Aviation Authority

CCTV Closed Circuit Television

CEO Chief Executive Officer

CFO Chief Financial Officer

CSI Corporate Social Investment

CTIA Cape Town International Airport

DEDT Department of Economic Development and Tourism

DG Director-General

DoT Department of Transport

DTP Dube TradePort

DTPC Dube TradePort Corporation

DTPCA Dube TradePort Corporation Act

ECNS Electronic Communications Network Service

ECS Electronic Communications Services

ERP Enterprise Resource Planning

EXCO Executive Committee (of DTPC)

FBO Fixed Base Operator

GA General Aviation

GDP Gross Domestic Product

HVAC Heating, ventilation, and air conditioning

IATA International Air Transport Association

ICAO International Civil Aviation Organization

ICASA Independent Communications Authority of South Africa

ICT Information Communication Technology

IMF International Monetary Fund

IT Information Technology

ITC Information Technology and Communication

JV La Mercy Property Investments (Pty) Ltd or Joint Venture

KSIA King Shaka International Airport

KZN KwaZulu-Natal

MDG Millennium Development Goal

MEC Member of Executive Committee

MRO Maintenance, Repair, Overhaul

MSP Multi-Storey Parkade

MTEF Medium Term Expenditure Framework

MTSF Medium Term Strategic Framework

NA (n/a) Non applicable

NDP New Development Plan

NGP New Growth Path

NKP National Key Point

OHS Occupational Health and Safety

ORTIA OR Tambo International Airport

PFMA Public Finance Management Act

PGDP Provincial Growth and Development Plan

PGDS Provincial Growth and Development Strategy

PPC KZN Provincial Planning Commission


81

QPR Quarterly Performance Review

R&D Research and Development

R&R Rehabilitation and Restoration

ROD Record of Decision

SACAA South African Civil Aviation Authority

SADC South African Development Community

SARB South African Reserve Bank

SARS South African Revenue Service

SCM Supply Chain Management

SEZ Special Economic Zone

SLA Service Level Agreement

SMS Safety Management System

TBC To be confirmed

UNDP United Nations Development Programme

Unqual. Unqualified

US United States

VAS Value Added Services

WTO World Trade Organisation

Documents

DUBE TRADEPORT CORPORATION€¦ · Dube TradePort Corporation (DTPC) is a Schedule 3C public entity established by the KwaZulu-Natal (KZN) Provincial Government to ensure that DTP