La Mercy set for 2010 take-off

Cape Town - KwaZulu-Natal's new R6.7bn La Mercy airport is nearly R1bn over budget, but 71% complete and on track to be fully operational in time for the 2010 Fifa World Cup, the Airports Company of South Africa (Acsa) said.

"The project was always going to be tight, but we have employed some of the best consultants in the world to help us and we are very, very confident that we will be open as planned on May 2 2010," Acsa group executive for aviation services, John Neville, told parliament's transport portfolio committee.

Acsa MD Monhla Hlahla argued that, given the constraints of Durban International Airport, La Mercy was an essential investment to accommodate the province's future demands.

"What people do not realise is that for every 1% in the country's GDP [gross domestic product] growth, our air traffic requirements increase by 3.5%. It is a case of balancing affordability with sustainability," said Hlahla.

While Durban International Airport will be officially closed the day before La Mercy opens, Acsa hopes to sell the site to another government department as soon as possible to boost to its stretched balance sheet.

The company, which secured a R1.5bn loan in January from the Development Bank of South Africa, is in the midst of a five-year, R22bn capital expansion programme. This has been accelerated to expand capacity at the country's 10 airports before the World Cup.

In the meantime, Acsa is also looking into the most efficient ways of getting fuel to the new airport It's estimated that about 25 road tankers of fuel will be needed daily. Initially this will be transported by road, but the feasibility of building a pipeline to the airport is being studied.

- Fin24.com