Cape Town's airport could be a booming 'aerotropolis'

Transport

SOUTH African Airways' (SAA's) decision to cancel its direct flights between London and Cape Town has refocused attention on the role of an airport in a city's long-term economic planning. Given that competitive airlines such as British Airways and Emirates are seeing demand for this route increase enough to add flights to their schedules, there is no doubt that - despite SAA's decision - a unique opportunity exists for Cape Town International Airport to become a thriving & aerotropolis& and a key player in Cape Town becoming a global transport hub.

International trade has become more important as a factor in the global economy over the past six decades. Since 1950, world trade by value has increased by 2000%, far outstripping global population and gross domestic product growth rates. Since 1970, seaborne trade has grown 4% a year, while air cargo has increased by 9% a year.

During this period, some countries have recognised the potential economic advantage of their global locations, developing themselves as transport hubs.

Most notable among these is Singapore, which today has the world's largest transshipment port, handling 20% of the world's transshipment traffic and with 85% of the containers passing through its harbours being destined for somewhere else. Singapore's Changi Airport is one of the busiest in the world, with more than 6000 flights a week, handling more than 40-million passengers and 1,8-million tons of cargo a year.

Others, such as Dubai, have followed a similar strategy - using their location as a crossroad for global sea and air traffic as a facilitator of stellar economic growth. Panama, long the beneficiary of east-west trade via the Panama Canal, has now recognised the growing importance of north-south trade and is building the brand new airport city of Panatropolis, which is expected to be home to 200000 people.

The reason the Dutch chose to settle in Cape Town in 1652 was precisely this locational advantage. In 1871, however, the simultaneous completion of the Suez Canal and the US transcontinental railroad had a dramatic effect on world trade, ensuring that goods could circle the globe in record time without having to pass the Cape. This was worsened when the Panama Canal was opened in 1914, and it has remained a problem for as long as the vast majority of international trade and economic activity has been focused in the northern hemisphere.

However, the world has changed in the past 20 years and Cape Town's location must once again be considered an economic advantage. More and more trade is taking place between the developing countries of the south and east, putting us in the middle of it. We are also able to take advantage of all major forms of transport used in international trade: sea, rail, road and air (and, increasingly, bandwidth).

Air transport is the one that seems to get the least attention from national and local authorities but it is a major opportunity for Cape Town going forward. For example, flying from London to Sydney via Cape Town only takes 90 minutes longer than via Singapore. A long-haul flight from Singapore to Sao Paulo could be broken up with a stop in Cape Town.

It is time for Cape Town to consider how it can put its international airport to maximum use. As Prof John Kasarda, who coined the term & aerotropolis& points out, & transportation infrastructure has historically shaped business location and urban development& Kasarda explains that airports represent the & fifth wave& of transit-oriented urban development, following from highways in the 20th century, railways in the 19th century, rivers and canals in the 18th century and ocean port cities before that. Today, more than a third of all goods traded goes by air. It is expected that, between 2010 and 2030, worldwide commercial air passenger traffic will increase from 4,9-billion to 13,3-billion and global air cargo traffic will triple. Taking this into consideration, China is planning to build 100 new airports by 2020.

In the way that cities grew up around harbours or railway stations in the past, an aerotropolis develops in concentric rings around the airport. It consists of hotels, conference facilities, offices, retail outlets, residences and light manufacturing and distribution facilities for industries that rely on speed to market for their competitive advantage. It is important to make sure the development around the airport is done in a planned way to maximise the economic benefit. This requires that city and airport authorities develop a common vision for the future and a plan that enables the airport to become a driver of local economic development. Since the redevelopment leading up to the 2010 World Soccer Cup, SA's airports have increasingly become places to do much more than catch a flight. Globally, the rental of commercial and retail space at airports makes up about 60%-70% of earnings, while in SA it is about 50% - suggesting great opportunities for further development.

Cape Town International Airport is well placed to develop as an aerotropolis, becoming a hub of business activity and the source of employment opportunities for the communities based in the underdeveloped Metro South East. But we haven't even begun to scratch the surface of what is possible.

There is a need to work together to get national, provincial and local government behind the idea of Cape Town International Airport as an aerotropolis, much as they have done for both OR Tambo and King Shaka airports. We also need to work jointly in convincing international airlines that Cape Town is well placed to act as a stopover point for long-haul flights, transferring passengers and breaking up bulk cargo for redistribution. The growing presence of more fuel-efficient long-distance aircraft such as the Boeing 787 Dreamliner and the Airbus A380 makes this increasingly viable.

Transport access to and from the airport is key to its long-term development potential. Road access must remain as easy as it currently is, but rail access, whether for goods or people, must also be built into longer-term plans. Services provided by the city need to be advanced so that the area can handle the kind of growth that is possible.

The rezoning of land owned by the Airports Company SA (Acsa) and other privately held land around the airport for mixed commercial, industrial and other use will help prevent the airport becoming redundant in case of economic changes.

The development of Cape Town as a major international air transport hub needs much more focus. The airport and its role in positioning Cape Town's global locational advantage must become a central part of the long-term 2040 vision of the city and province that is currently under development. To maximise the potential of the current airport, planning should start for the optimal long-term growth in a way that it earns SA growing amounts of foreign currency and creates much-needed jobs for the people of the surrounding areas.

By getting all parties behind the development of Cape Town International Airport as a busy aerotropolis, and linking this with the maximisation of our other transport hubs such as Table Bay Harbour, Cape Town can realise the dream of once again using its global location to take advantage of growing international trade. In this way, the rest of the world can help us provide a better life for more of our people.

& 8226;Lundy is CEO of Accelerate Cape Town. Cloete is GM, Acsa: Cape Town International Airport.

'The world has changed and Cape Town's location must once again be considered an economic advantage'