2 July 2015

Three Ports, One City: Accelerate Cape Town

Cape Town International Airport

Tebogo Mekgoe

Chief Operating Officer

History of Cape Town International Airport

THEN

History of Cape Town International Airport

NOW

We measure our in-perimeter bottom-line…

And we are doing well

“Airport Precinct” Approach

A “gated community” approach to development and growth is

not sustainable

The greater perspective …

Unsustainability of “Airport Precinct” Approach

South Africa unemployment rate at a 10 year high

+Growth drivers are weak and inflation drivers are strong. It’s very possible next

year will see a slow growth of less than 2%

+12 million people live in extreme poverty

+Inequality is our reality: 85% of Africans still remain poor, while 87% of white

South Africans are in the middle to upper class categories

Fragility of “People and Society”

in South Africa

Unsustainability of “Airport Precinct” Approach

Unsustainability of “Silo Planning” Approach

Conventionally, we plan in silos.Have we fully leveraged the economic role of transport?

Importance of “Integrated Region” Approach

The Dubai Case Study

Importance of “Integrated Region” Approach

The China Case Study

Source: Economix

Importance of “Integrated Region” Approach

Country/Region Cluster Strategies

Michael Porter

“National prosperity is created, not inherited.”

(Labour,

Capital,

etc.)

(esp.

Domestic

Demand

Strength and

Quality of

Linkages

Integrated Airport Region Approach

TRANSFORMATION FROM AIRPORTS TO AEROTROPOLI

AIRPORT AIRPORT

AIRPORT CITY(5km radius)

“Expanding our boundaries of influence”

AIRPORT

AIRPORT CITY

AEROTROPOLIS(20km radius)

Our business of today Our business of the future“Compete as

airports”“Compete as aerotropoli”

Transforming to AEROTROPOLI

VISION 2030

Pursuing Aerotropolis development strategies will:

• offer businesses speedy connectivity to their suppliers, customers and

enterprise partners nationally and world-wide, increasing both firm and

regional efficiency

• generate “economies of speed” and boost aviation-enabled trade in

goods and services via improvements in airport area connectivity,

people and product mobility, and land use

Transforming to AEROTROPOLI

TRANSFORMATION FROM AIRPORTS TO

AEROTROPOLI

VISION 2030

Africa’s leading tourism destination

Cape Town

Transforming to AEROTROPOLI

ValueAir connectivity

+Urbanisation

+Local accessibility

More high value job growth in Aerotropolis than traditional downtowns

Direct + indirect supported by each regularly scheduled long-haul service

Passenger volume increase results in 2% regional job growth

Live within 20 minutes of an airport in developed countries

7x

3000 jobs

10%

1 in 6 people

AEROTROPOLIS

Attract specialised industries

Define airport

development &

connectivity

Focus on strength of

airport & the region

Catalyse surrounding

urban property values

Grow aviation

movements

Catapult local

economic development

Determine settlement patterns

• Which bottom line does the City work on?

• What are the key variables and drivers for the City?

“Integrated Region” Approach

Thank You