1

“THE MAKING OF EKURHULENI

AEROTROPOLIS – PROGRESS REPORT”

ACE 2014, Kuala Lampur, Malaysia

1st April 2014

Presentation by:

Clr. Mondli Gungubele

Executive Mayor

City of Ekurhuleni, Gauteng

Province, South Africa

Table of Content

1. Gauteng Global City Region Economic Value

Proposition.

2. City of Ekurhuleni Economic Performance.

3. City of Ekurhuleni’ Value Proportion for the

Aerotropolis.

4. City of Ekurhuleni’ Aerotropolis, Roadmap, Master

Plan and Progress Report.

5. City of Ekurhuleni’ Brand Identity Creation Process

6. Conclusion

2

underlying principle

3

GAUTENG’ ECONOMIC OUTLOOK

4

GAUTENG GLOBAL CITY REGION

35,6% GVA

5

GAUTENG’ GROWTH CORRIDORS &

DEVELOPMENT NODES

6

Blue: National Red: Provincial Green: New Black: Freight

GROSS VALUE ADDED - EKURHULENI

7

GROSS DOMESTIC PRODUCT

R204 Billion At Current Prices

6.4% of National GDP

ECONOMIC GROWTH RATE:

Ekurhuleni - 3.4% (2012) / Average of 10,5%

over 10 yrs (2002 – 2012)

National Total – 2,5% (2012)

TOURIST ARRIVALS PERFORMANCE

8

TOURISM ECONOMIC IMPACT IN

EKURHULENI

Source: Grant Thornton Research & Analysis (2012)

Amount

Total direct impact on Ekurhuleni economy R 1 951 665 194

Multiplier impact (indirect and induced) R 415 685 170

Total added to Ekurhuleni GDP (direct, indirect and induced) R 2 367 350 364

Estimated contribution to Taxes R 230 792 742

Category Amount

Spend by Overseas visitors R 749 159 991

Spend by African visitors R 496 391 793

Spend by Domestic visitors R 661 077 409

Total R 1 951 665 194

Number

Highly skilled occupations 587

Skilled occupations 2 640

Unskilled and semi-skilled occupations 1 613

Informal 2 494

Estimated Total Contribution to Employment (number of

annual jobs) 7 334

Estimated Total Payroll (R’000) R 769 541 586

Expenditure and spend estimates Employment Impact of the tourism sector on the local economy

Economic Impact of the tourism sector on the local economy

9

AVIATION SECTOR ECONOMIC &

EMPLOYMENT IMPACT IN EKURHULENI

2013 2017

Direct Indirect Induced Total Direct Indirect Induced Total

Airlines 6,49 22,98 11,68 41,15 6,62 23,44 11,91 41,97

Airports and Ground Services 16,91 21,06 13,64 51,61 17,25 21,48 13,91 52,65

Aerospace 3,03 11,49 1,95 16,46 3,09 11,72 1,99 16,80

Catalytic tourism impact 33,87 18,69 15,77 68,32 34,55 19,06 16,08 69,70

Total Aviation Industry (including extended impact on tourism)

60,300 74,210 43,030 177,540 61,510 75,710 43,890 181,120

Source: Grant Thornton Analysis 10

approach

11

GROWTH AND DEVELOPMENT STRATEGY

2055 VISION

12

Inclusive industrial

economy

Meaningful reduction

of unemployment and

poverty

Ekurhuleni Metropolitan Municipality : Growth and Development Strategy 2055

Delivering City

Sustainable City

Well managed,

resourced, financially

sustainable

Proposed Future

Clean, green and

sustainable African

manufacturing

complex and city

development network

Re-Urbanise Re-Industrialise Re-Mobilise Re-Govern Re-Generate

Strategies and Imperatives

To achieve

sustainable

urban integration

To achieve job

creating

economic growth

To achieve

environmental

well-being

To achieve social

empowerment

To achieve

effective

cooperative

governance

Capable City

GROWTH AND DEVELOPMENT

STRATEGY 2055 KEY INDICATORS

Urban Integration

Ind

icat

ors

Housing Provision

Limiting Urban Spread

Transport Provision

Electricity Provision

Water, Sanitation & Refuse Removal Provision

Economic Growth

Economic Growth

Employment Opportunities

Economic Diversification

Capital Inflow Improvement

Environmental Well-being

Land Use Optimisation

Pollution Reduction

City Beautification

Biodiversity Improvement

Resource Use and Re-Use

Social Empowerment

Education and Skills Provision

Poverty and State Dependence Reduction

Crime Reduction

Public Facility Provision

Social Development

and Equality

Health Provision

13

Concept Studies

Preliminary Vision

Concept Plan

EA Vision

EM Brand Strategy

5 year Masterplan

100% Concept Plan

50% Concept Plan

50% Final Masterplan

25 year 100% Final Masterplan

DELIVERABLE

DELIVERABLE

DELIVERABLE

Towards the Master plan

14

VALUE PROPOSITION

Economic Growth

Attracting Investment

Skills Development

Integrated Public

Transport Network

Integrated Logistics Network

Spatial Planning

Reducing the Cost of Doing

Business

15

III. DISTRICTING

THE 5’C

Globally

Connected

Destination

Polycentric

City linked to

Region

Maximizes

Resource

Efficiency

Clustered

Mixed-Use

Urban Form

Social &

Economic

Participation

Strong

Cohesive

Communities

Investment

that supports

growth

Leadership

&

Partnership

Environmental

Resilience

Distinctively

South African

Aerotropolis

INTEGRATED APPROACH

16

III. DISTRICTING

1 2

3

4

5

6

7

1

2

3

4

5

6

7

Aero Space

Aero Space

Existing Aerospace

17

18

III. DISTRICTING

1

2

3

5

6

7 8

9

10

11

12

4 13 14

15

17

18

19

20

Life Sciences

Life Sciences

Life Sciences

1

2

3

4

5

6

7

8

9

10

11

12

13

15

16

17

19

20

14

Existing Life Sciences

18

III. DISTRICTING

10

11

12

13

1

2

3

4

5

6

7

8

9

15

16

17

14

18

19

20

21

22

23

24

25

15 16

17

14 18 19 20 22

23 25 10

11 12 13

1 2 3 4

5 6 7

8

9 Logistics

Existing Logistics

19

III. DISTRICTING

Aero Space

Aero Space

Life Sciences

Life Sciences

Life Sciences

Logistics

Existing Economic Clusters

20

III. DISTRICTING Existing Industrial Districts

21

III. DISTRICTING Existing/Proposed Agriculture

22

III. DISTRICTING Existing/Proposed Logistics Hubs

23

III. DISTRICTING Concentric Land Use Trend

24

PROPOSED CLUSTER DEVELOPMENT

Economic Clusters

Aviation

Logistics/ Distribution

Education

Bio-Life Sciences

Tourism

ICT

Engine Testing

Avionics

Advanced Manufacturing

Composite Materials

Parts Assembly

Chemical/ Resins

Cloud Computing

& R & D

Service/ Assembly

Culture &

Heritage

Business Tourism

Temp Control Chain

Health R&D

Devices

Incubator

Supply Chain

Cold/Dry Storage

25

III. DISTRICTING Proposed Framework Concept

26

concentration

27

III. DISTRICTING Concentric Areas of Influence

28

III. DISTRICTING Multi-Core Districting

29

Research & Manufacturing

30

Creative Cluster

31

Agri-Business Cluster

32

Logistics Cluster

33

Residential Infill Cluster

34

III. DISTRICTING

PRIORITY TRANSPORT & ROADS NETWORK

35

III. DISTRICTING CITY STRATEGIC LINKAGES Strategic linkages required to optimise the development potential of the City

• PWV 14 which will link Germiston and the Central Activity Belt to OR Tambo International Airport and the R21 and N12 freeways.

• PWV13 to extend southwards from R21/N12 Witbank systems interchange to N3 just past • N3/K155 services interchange in Vosloorus, to provide as a central mobility spine for this

north south strip of development in Ekurhuleni; PWV 13 which will directly link OR Tambo International Airport with the N3 and which will improve accessibility of the Core Development Area;

• K60 to link Tembisa-Kempton Park to Midrand to the north of the study area; • PWV15 between the N12 Witbank and R21 north, to unlock development potential to the

east of OR Tambo International Airport; • K68/86 to link Daveyton to OR Tambo International Airport and to unlock development

potential of area north of the N12; • K106 which links the Daveyton-Etwatwa complex to the Central Activity Belt including

Benoni, Boksburg and Germiston. • K132/K163/K116 which links Springs to Brakpan CBD (Far East Activity Belt) and then to

Boksburg (Central Activity Belt). • Another major strategic linkage which was identified as a priority is to link Daveyton and the

OR Tambo International Airport area to one another.

STRATEGIC DEVELOPMENT AREAS

37

timeline

38

CITY IDENTITY AND IMAGE PROCESS

39

PROPOSED CITY IDENTITY & IMAGE

40

Brand

Development

5 year

EKURHULENI

AEROTROPOLIS

HIGH LEVEL REVIEW

25 year

EKURHULENI

AEROTROPOLIS

PLAN

FINAL

DELIVERABLE –

MASTERPLAN +

NEW BRAND

IDENITY

OCT. 2013

JUN. 2014

APR. 2014

APR. 2015

Progress

Reports

Tools

&

Resources

Marketing

&

Communication

S

T

A

K

E

H

O

L

D

E

R

DELIVERABLES PROGRAMME

? NEW

IDENTITY

MAYOR

MMC

WARD COUNCIL

BUSINESSES

INVESTORS

COMMUNITY

ENGAGEMENTS TIMELINE

PROJECT PLAN

41

drivers

42

Government Operational Task Team

• Convenor: Jack van der Merwe, CEO – Gautrain Management Agency)

• Project Head: Caiphus Chauke, HOD – City of Ekurhuleni

• Project Operations: Joy Moja, Project Director – City of Ekurhuleni

• Project WorkStreams

43

EMM Mayor/MMC

GPG MEC/Exco.

Premier’s PCF Consultative Fora: SIP 2 & 7 Business Communities

Operational Task Team

5 years Strategic Implementation

Plan

30 years Master Plan

Marketing & Stakeholder Engagement

MSDF/RSDFs

SPV

Strategic Roadmap • Conceptual

Framework

[Work Stream A]

[Work Stream D]

[Work Stream C]

[Work Stream B]

[Work Stream E]

Institutional Arrangements

44

Consortium Structure

Project Management

Technical Co-ordination

AURECON T&T RTKL MXD E-Logics CSIR

- Modelling - Transport Planning - Urban Planning - Environmental - Outreach & communication

- Financing & Implementation

- Master Planning - Urban Design - Branding

- Transportation Modelling - Institutional frameworks

- Market research and strategy

- Freight Modelling - Freight logistics

AURECON

(Wayne Peterson & Shannon Ramsarup)

(Stephan Gildenhuys)

45

Project Details

46

• The future competitiveness of Gauteng Province rests with

understanding, developing, and better leveraging ORTIA and

its surrounding Aerotropolis.

• EMM must capitalize on the aviation assets to compete and

prosper, thus fostering Ekurhuleni’s and Gauteng’s economic

transformation in the increasingly globalized, speed-driven

marketplace.

CONCLUSION

Ekurhuleni Aerotropolis is about Leveraging Speed, Agility, and

Connectivity to drive Global Efficiencies and Competitiveness

47

Thank you

48