DURBAN, as the country's third largest city, has often suffered an inferiority complex.
It is neither the economic powerhouse of Johannesburg nor the international tourism drawcard of Cape Town.
Yet Durban is forging one of the country's fastest-growing commercial development regions, attracting international and large-scale local conferences that have pumped billions of rands into the KwaZulu-Natal economy, and operating the busiest container terminal in the southern hemisphere.
Ten years ago, Moreland, the Tongaat-Hulett property arm, began selling its land north of Durban for residential, commercial and industrial use. Since then, Moreland and its customers have invested more than R10bn in the area, R500m of which was invested last year.
Gordon Hibbert, Moreland MD, says the company still has sufficient land to continue releasing new developments and projects for another decade, by which time Umhlanga, the suburb north of Durban, will have a New Town centre.
The property industry has heralded the Umhlanga area as the fastest-growing commercial node in SA. Old Mutual Properties' R1,4bn Gateway shopping centre has anchored the New Town initiative.
Hibbert says the New Town centre has already brought 185000m² of commercial space to the market, including 125000m² from Gateway and 25000m² from The Crescent shopping centre. Another 5000m² is under construction.
The City Lodge group is building a flagship hotel in the New Town centre opposite Gateway.
Hibbert says the vision for the area is to create an integrated working and living environment similar to Sandton Square.
The Durban harbour moves more than 70% of sea container traffic for the continent. Multimillion-rand upgrades to the port are under way, part of the SA Port Authority Project 2005 initiative.
Although port users are now struggling with congestion and delays, the investment is expected to relieve the pressure and secure a world-class facility.
The city has struggled for years to spearhead a waterfront development that would regenerate the Point region and open the harbour area and entrance as a valuable tourist attraction.
In a move committed to boosting Durban's economy, Moreland and the city fathers have set up a public-private partnership that will pump millions of rands into the city's economy, with a marine theme park as the main tourist attraction.
Last month the Durban Point Development Company released 15ha of land that is expected to raise R500m for Durban and be the catalyst for development of the long-awaited waterfront.
The move followed the beginning of construction on the R750m uShaka Island marine theme park in the Point area at the harbour mouth. Last year the eThekwini municipality led the way in raising funds for this construction as part of its programme to regenerate the area and stimulate economic growth.
Earlier this month the International Convention Centre (ICC) and the neighbouring Durban Exhibition Centre again played host to the country's premier tourism showcase Indaba. The ICC has won numerous awards for its facilities, including being the best conference centre in Africa, and Durban has been the venue for a wide range of conferences, large and small.
The completion of the ICC expansion phase one meant Indaba was the first conference to benefit from the enlarged facility.
However, the commitment by the city fathers to invest R250m into doubling the ICC means the facility can play a leading role in the future in securing more national and international conferences for Durban.
May 16 2003 07:09:11:000AM Business Day 1st Edition
Publisher: Business Day
Source: Business Day
City is ready to shed its economic inferiority complex, writes Nicola Jenvey.
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