Transnet National Ports Authority (TNPA), the South African rail, port and pipeline company, has announced it has selected a preferred bidder for the Durban Cruise Terminal.

KwaZulu Cruise Terminal Pty Ltd (KCT), a Joint Venture between MSC Cruises SA (a subsidiary of MSC Mediterranean Shipping Company SA) and Africa Armada Consortium (a black empowerment partner), will be responsible for the design, financing, construction, operation, maintenance and transfer of the project for a 25-year concession period.

KCT’s equity is currently divided into 70% ownership by MSC Cruises SA and 30% ownership by Africa Armada Consortium

Capital investment for the project would be ZAR215 million (US$16.8 million)

The Durban cruise market had grown from 75,947 passengers ten years ago to 191,412 passengers last season. Already we have at least 20 international cruise liners operated by 14 cruise lines calling at South Africa’s ports.

TNPA was striving to work more closely with municipalities, provinces and the tourism sector to ensure alignment between goals and planning to cater for this fast growing market. Currently vessels have been using the port’s N-Shed, which was upgraded ahead of the 2015/16 season. TNPA’s position in terms of its cruise strategy was to offer new and modern cruise terminals that would provide an ideal gateway to a unique South African experience.

TNPA Chief Executive, Richard Vallihu, said:

“Despite the pressures of the global economic climate on disposable incomes, the global luxury cruise sector remains one of the fastest growing segments in the tourism industry and has the potential to grow the economy and create jobs."