Public Policy Correspondent

THE Airports Company SA (Acsa) said yesterday that it would "vigorously oppose" the intended expropriation by the KwaZulu-Natal government of land Acsa owns at La Mercy, outside Durban.

This is likely to further delay the construction of the new airport that forms part of a proposed industrial development zone.

The stop-start project to create a R2bn airport at La Mercy, to be called the King Shaka International Airport, has been a contentious topic in the province for more than 30 years. The airport will form part of an industrial development zone, linking air, rail and port infrastructure in the province.

In an effort to move the project forward, KwaZulu-Natal public works MEC Mike Mabuyakhulu issued a notice in the Provincial Gazette last week stating the department's intention to expropriate the 2060ha currently zoned for agricultural purposes.

The land consists of a sugar cane plantation, an aircraft hangar and a wooden house installed by aviation company Come Fly.

Acsa has 30 days to make written submissions regarding the expropriation.

The gazetted notice reads: "If you are intending to claim compensation as a result of the expropriation, you are invited to enter into negotiations with the (MEC for public works) in this regard."

Acsa said it would do "whatever it takes to oppose the province's intention".

The parastatal said it was unfortunate that the provincial government had decided to issue a notice "to the surprise of all participants in this process, including the national government".

Acsa's communications manager, Solomon Makgale, said: "Management will vigorously oppose it (the intended expropriation) in the best interest of Acsa, its staff and the country."

Makgale said the company was not opposed to relocating to La Mercy, but had suggested "a different model". This would not require government funding for the project, but would lead to an economically viable project, driven by traffic growth into the region.

Acsa felt a new airport should be built only after the current one in Durban had reached full capacity.

"Current traffic growth forecasts indicate that this is not likely to happen until between 2017 and 2020, when passenger traffic reaches 5- million. Most importantly, the model is not premised on the closure of the current airport," said Mak gale.

However, the idea of expropriating the land got some support from the Dube Trade Port, the specialpurpose vehicle established to manage the proposed industrial development project.

The organisation said the land acquisition would fast-track the construction of the King Shaka airport and the establishment of the industrial development zone.

Dube Trade Port CE Rohan Persad said: "We have reached an exciting phase in the realisation of a dream of a world-class facility on the African continent.

"More importantly, this project is a catalyst for economic development and sustainable job creation in KwaZulu-Natal."

The new airport is expected to be operational by 2006.

President Thabo Mbeki said in his state of the nation address recently that infrastructure improvement along the KwaZulu-Natal coast included moving Durban airport to La Mercy. This, together with the cabinet's approval of the Dube Trade Port last year, gave impetus to the project, which had been mooted since the mid-1970s.

Mar 01 2004 07:34:20:000AM Khulu Phasiwe Business Day 1st Edition