Are we losing out on sea cruise millions?

May 12 2011 at 03:31pm
By HELEN BAMFORD
http://www.iol.co.za/polopoly_fs/cw-harbour-6454-2-goes-with-argus-cruise-story-1.1068157%21/image/638931875.jpg_gen/derivatives/box_300/638931875.jpg INDEPENDENT NEWSPAPERS


QUEEN OF THE SEA: The Queen Mary 2 in port on a recent visit to Cape Town. PICTURE: BRUCE SUTHERLAND, CITY OF CAPE TOWN

South Africa is missing out on substantial revenue by not exploiting the lucrative and fast-growing sea cruise market.
A 2010 report by the City of Cape Town has highlighted the fact that the lack of adequate terminal facilities is restricting industry growth in the region.
It said South Africa captures only 0.5 percent of the world’s cruising business.
Figures quoted in an earlier city report from 2008 estimated that one cruise liner carrying 2 000 passengers, with a crew of 600, would result in expenditure of R2 286 400 a day.



Based on these figures a seven-day cruise from Cape Town to Port Elizabeth, Durban, Richards Bay and returning to Cape Town would result in expenditure of R9.14 million. “Just 25 of such cruises would result in revenue of R228.5m,” it said.



The Cape Chamber of Commerce is now lobbying for a terminal big enough to accommodate two international cruise liners to be built in the Duncan Dock as part of the development of the Cape Town’s International Convention Centre and entertainment precinct.
Chamber president Michael Bagraim said they were planning talks with the National Port Authority and were confident of their support.
“Three berths for cruise ships would mean thousands of affluent tourists in Cape Town every week and the positive economic impact would be felt throughout the city.”
He said the idea tied in well with the existing expansion plans for the convention centre precinct, leading hotels, theatres and the Waterfront. “If there is to be a casino, it will make this whole area an unbeatable tourist magnet.”
The possibility of a casino near the Waterfront was recently mooted as part of the Western Cape’s regeneration plan announced by MEC for Public Works and Transport Robin Carlisle.
The suggestion of a cruise ship terminal with two berths in the Duncan Dock and a third one for smaller ships in the V&A Waterfront was made in the report commissioned by the city council and completed last year.
Bagraim said the report suggested that revenue from the casino licence could meet some of the development costs.
Well-heeled tourists who arrived in Cape Town were currently greeted by a potholed, cracked road which they had to negotiate to get to a bus or taxi.
“It’s awful. They have to walk along this road while being blown around by the southeaster. A lot of the older tourists choose to stay on board,” Bagraim said.
He said it would make sense to put up proper facilities. Ocean travel was big business, second only to air travel, yet South Africa was missing out.
The city’s report said: “There exists a dilemma for the City of Cape Town, whereby it is felt that the current number of cruise arrivals is insufficient to warrant a large capital outlay, while the major cruise operators insist that they will not increase their supply of vessels to the area until the appropriate infrastructure exists.”
Bagraim said the private sector was ready to invest in the precinct development which already had the strong support of the city, the province, the Cape Town Partnership and the Chamber of Commerce.
“If we add the cruise liner terminal the whole project becomes irresistible.
“It would be the biggest thing for Cape Town since the V&A Waterfront,” he said.
It was also a better potential earner than the existing industrial plans for ship repairs and services to oil and gas rigs.
“Industries like this can be much better served from Saldanha, which is more conveniently located and has deep water and ample room for expansion. It also fits in with plans for an industrial development zone for the port,” Bagraim said.
The report said the alternative sites for a cruise liner terminal were the Eastern Mole in Cape Town harbour, Granger Bay, Simon’s Town and Saldanha.
Cape Town’s mayoral committee member for economic development and tourism, Felicity Purchase, said improvements were long overdue.
Cape Town needed to be a home-port which meant that cruise ships would be based in the harbour over the summer months, with people flying in to go cruising, as happened in places like Mauritius. The advantages were that people stayed longer and spent more money, she said.



Port engineer Magenthran Ruthenavelu of the Transnet National Ports Authority said cruise ships currently calling at the port were accommodated in the Duncan Dock facility.
“At this stage a small number of vessels are calling (below 10 per annum) and current facilities are used to accommodate these vessels,” he said.



Some provision had been made in the port’s long-term development framework plan to house such facilities at Duncan Dock depending on the demand at the time, Ruthenavelu said. - Weekend Argus

Damn, we definately are loosing a lot :(

Cross-post from Durban cruise terminal thread:


Transnet issues tender notices for cruise terminals at Durban and Cape Town

Transnet National Ports Authority has issued tender notices calling for expressions of interest (EOI) from interested parties to fund, build and operate cruise terminals at the ports of Durban and Cape Town.

The inclusion of a proposed cruise terminal at Cape Town is a little unexpected as this hasn’t been spoken of previously but will be welcomed by the tourism and cruise industries as something long overdue, particularly since immigration authorities prevented cruise ships from using the V&A Waterfront. The decision to go for a private developer and operator probably made the decision to include Cape Town a lot easier. The proposed Durban terminal has on the other hand been known about for some time with a dedicated site at A/B berths on the Point having been set aside for its development.

The real surprise with the announcement however is that TNPA has moved its position from wanting to partially fund and operate the terminal itself, to calling for outside stakeholders to undertake the funding, design, building and operation.

With the local cruise season lasting a maximum of six months between November and April each year, whoever expresses interest in the project or projects will face the challenge of having to go the route of a multi-purpose terminal in which other activities can take place. In Durban this could take the form of restaurants and pubs that will overlook the working harbour – something the port last enjoyed prior to the harbour entrance widening project of a few years ago.

EOI documents have to be submitted to TNPA at either the Port of Durban or Port of Cape Town, whichever is appropriate, by 6 June 2012, with tender submissions to be handed in by 10am on 29 June 2012.

http://ports.co.za/news/news_2012_05_21_01.php



The tender info..

http://www.tendersinfo.com/details-11325292.php

This would be an amazing place development for CT, but to build it in the existing docks, in Duncan Dock, what the hell, it's too small, we still won't be able to take advantage of the really big cruisers which is what you want, they really bring in the $$$ and all the high rollers!!

This will be an interesting EOI meeting to see what they have planned.....

Cape Town to get cruise liner terminal

It has taken years of intense lobbying, but now plans are under way for Cape Town to get a cruise liner terminal at Table Bay Harbour.
And the move will no doubt boost the city's tourism income substantially.
http://www.iolproperty.co.za/roller/news/resource/cruise.jpg
Last week Transnet issued a call for submissions of interest in the funding, construction and operation of a terminal.
In January Home Affairs banned cruise liners from docking at the V&A Waterfront's Jetty Two, citing security concerns which left passengers of the Queen Mary 2, on a visit to the city, to disembark from the Eastern Mole and having to negotiate railway lines, manholes and bollards.
The tender notice published last week called on interested parties to attend a briefing on June 6 ahead of submissions closing on June 29.
Transnet property manager Johan Claasen said after June 29 it would be decided whether to take it on to the next stage.
Cape Times shipping columnist Brian Ingpen said the call for proposals was a fantastic development and would encourage cruise liners to visit.
"It shouldn't just be seen as a cruise liner terminal, it should have multiple uses.
"Right now we don't have too many ships and it should also be used for weddings and conferences," said Ingpen.
Megan Gobey, an agent for cruise liners visiting Cape Town, said she hoped the terminal would come to fruition.
"There's been so many ideas on where to put cruise terminals, but E-berth is the best place to locate it," said Gobey. In its favour, she said, was its close proximity to the Clocktower Precinct and the ample space available for future development at the site compared to the V&A Waterfront.
"The only problem is that most of the passengers on the cruise ships are retired so they won't be able to (easily) walk the short distance to the Waterfront," said Gobey.
Economic Development and Tourism MEC Alan Winde, who has been one of the main proponents of a cruise liner terminal, said when he spoke to Home Affairs Minister Nkosazana Dlamini Zuma, she told him that it was a tourism issue which had to be taken up with Tourism Minister Marthinus van Schalkwyk.
"In Cape Town the income-generators are the world cruise liners that stop over here. We need to offer cruise liners a better welcome than they are getting at the moment," said Winde.
Head of business thinktank Accelerate Cape Town, Guy Lundy, said a cruise liner terminal would be a big boost for a largely non-existent industry. A new terminal would be able to leverage the interest that Cape Town has received as an international destination.
"At the moment we're not even featuring on the plans of international cruise liners. The building of a facility should go in line with a plan to attract operators," said Lundy.
Head of Federated Hospitality Association of Southern Africa (Fedhasa) in the Western Cape, Dirk Elzinga, was convinced the hospitality industry would be "delighted" if a cruise liner terminal was built.
"It's long overdue. At the moment the cruise liner facilities are non-existent. If there's a good cruise terminal then operators will definitely do their best to bring more business to Cape Town," said Elzinga.
Such a move could also be beneficial to the city's hotel industry.
Cape Times

Forgot about this. Went and created a new thread in the maritime section.

Rather move this there.

^^ I'm so excited about this... been wishing for it for a long time and fits well into economic plans of the City and Province. Wonder how long the soliciting ideas process will take? So glad to see Transnet finally doing something for the city's development... :)

Next... Culemborg! :nuts:

i have seen the economic model for this and not sure this can work.
who will base their ships there?
where do they said to?
the basis of a cruise terminal is to have a "home fleet" and they come and go?

Model not ideal for CPT but the Durban model works well due to moz sailings

Design the arrival hall in such a way as it can be used for conferences and events, with big glass walls looking out over the V&A? - that may solve some of the issue

Of course it will work!

Ship Cruises Worldwide booming industries. The number of cruise ship alone goes up by more than 25%. CT is a desirable stopover.

CT got bigger airport, whilst an appropriate and representative ship cruise terminal is long long long overdue. Both good for tourism and good for jobs.

Durban might be crying in fear of CT competition, but it will be good for CT and Durbs as the cruise liner will stop in both harbor.

you need to get your facts straight and read the macro benefit report on the cruise terminal.
a) cruse companies do not pay rent to use a facility
b) CT cruise industry very seasonal
c) need to base a home fleet
d) where do they sail too?
e) round the world cruises or infrequent stop ores by QM2 etc not sustainable
f) value to economy or to Transnet to use docking facility for non cruise related activities about x10 higher than a cruise liner
g) yes cruising a boom industry but not in Africa. Its in Asia and US as there are places to go to and multiple things to see i.e. every day a new destination. Where to from CT? walvis bay? Lunada?

guys you need to get over emotion of this. the studies done on the economic benifit clearly shows that CT does not have a viable argument for the cruise terminal. DUR does in fact support the argument due to the existing facility (which the study suggested being upgraded vs CT new build) and DUR has an existing seasonal home fleet that sails to moz

its about the benefit to the economy or city vs a nice thing to have

Why did TransNet issue a call for submissions of interest if it's so apparent that existing operations would be 10x more profitable? It doesn't make any sense.

^^ I think it's very shortsighted to think a cruise terminal would not be viable. I doubt the economic minds like Alan Winde would be calling for it, if it wasn't sustainable.

I agree it shouldn't be overdone, as Cape Town can never be Miami or the Med, as the list of destinations near Cape Town indeed are limited; i.e. doesn't have the plethora of islands or mainland ports within a 1000km radius of the home port. But, a multi-functional approach and it's proximity to the CTICC and its linkages to it will certainly make a harbour-view venue viable for more than just ship berthing and international customs facilities.

Durban does have a slight leg-up on Cape Town, as being a good base for Mauritius, Reunion and Mozambique cruises. However, round the world cruises will favour a stop-over in Cape Town, as Cape Town, along with Southampton, Sydney and Rio are seen as one of the world's great ports.

Also, do not discount West Africa and St.Helena. West Africa is really trying to thrust itself into the African limelight and St.Helena is trying to boost its image as a tourism island, with their new airport etc. Also, with BRICS becoming more important, perhaps we should have more cross-Atlantic cruises from Rio to CT, a wonderful holiday package of two of the most beautiful cities in the world for those who have time.

political pressure.

This only works (sort of) when the government declutters CT harbor and movers a lot of activities to Shaldahna, which can only happen after its made an IDZ to encourage movement.

Disagree on the west african cruising option, too much political unrest, to much piracy and St helena has no port.

the call by Trasnet was indeed surprising as they were the authors of the document regarding existing trade use of prime CT harbor quays was more profitable than cruising using up the quay for days.

^^ I still don't buy it. After the V&A was ruled out for berthing cruise liners by Customs, I still completely feel that CT needs a small (not massive), multi-functional, but welcoming cruise terminal. You're not really going to convince me only Durban needs one. I will agree Durban could probably do with a larger terminal, but CT not having one at all... don't buy it. :)

guys we need to merge this with the thread in the maritime section...so please go there in future

^^ I still don't buy it. After the V&A was ruled out for berthing cruise liners by Customs, I still completely feel that CT needs a small (not massive), multi-functional, but welcoming cruise terminal. You're not really going to convince me only Durban needs one. I will agree Durban could probably do with a larger terminal, but CT not having one at all... don't buy it. :)

What i think most of you are missing in Giles posts is that the economic benefits of peranently taking up a berth in CT harbour for cruise purposes do not come close to using that berth for port operations. As much as it pains most people here, CT will never be a big base port, there is nowhere for the cruises to go besides Walvis Bay and Mossel Bay for the short cruise that MSC currently to from CT. Yes this year they are doing one past St Helena... but have you looked at how many days that cruise is at sea? hardly a typical cruise in that they always look to stop at many destinations.

The reason MSC has based its operations and continues to increase them from Durban is the desire to go to all the Indian Ocean islands, and the proximity to those islands is what makes Durban the logical base to develop cruise tourism as shown in every single report on cruising in the region.

Yes Cape Town is a great stop over destination on around the world cruises but that is minor in the big scheme of things in terms of motivating for the cruise terminal.

I think Transnet has put the CT Cruise Terminal out there to see what the bite is and to see what proposals it receives to see if anything would be more viable than leaving the site for port purposes. Heck, if enough research is done, it might be possible to show that a cruise terminal there would be worse for the CT economy than not having one due to the loss of port revenue and the slower movement of goods in port... just putting it out there.

On the other side i agree that the way people currently arrive in CT is appalling, and in a perfect world a cruise terminal should be built to serve this purpose, but it must not be at the expense of the greater end benefit for the city.

On the other side i agree that the way people currently arrive in CT is appalling, and in a perfect world a cruise terminal should be built to serve this purpose, but it must not be at the expense of the greater end benefit for the city.

Is it really necessary NOT to have one? Is it not possible to have a multi-functional quayside? Does it have to JUST be a cruise-ship berth? I hear everything that you're saying, but looking at how often a large passenger ship is docked in CT's harbour in summertime, I tend to sway towards the latter part of your opinion-piece; that the arrival circumstances, for a city of CT's stature, is appalling. We simply cannot call ourselves a excellent global cruise stop-over if we don't at least have a small, yet attractive and efficient arrival terminal. It's embarrassing.

Just as Durbs didn't want to welcome international travelers at the old DIA anymore, so we'd like to welcome seagoing tourists at something halfway decent, even if small and multi-functional.

Cape Town is a Harbor Town, isn't it!
It needs a World Standard cruise terminal.

How else do you want to accommodate all the big cruise ships currently under construction. Has anybody seen the AIDAMAR in Hamburg. One of the Worlds biggest they just entered to sea.

CT adjusted the airport to World standard so it does with the stadium.
The cruise terminal is next. Generates lots and lots of new jobs and
a new market probably never seen before.

Think, the sharks in the "Shark Tank" just getting a little nervous, that the "Big White" bites into their fins. But hey, isn't a shark all shark family?

Apparently there was an article in the Cape Argus recently that stated that the new port manager has confirmed that E dock will become a dedicated cruise terminal. Anyone see it?

Well all tenders for both cities were submitted about 6 weeks ago. Depending on the level of interest shown announcements will be made in due time I suppose

Would be interesting to get a hold of the original article because seeing Chris from that Whale Cottage blog positive about anything perhaps explains the recent snowfall the country has seen.

Apparently there was an article in the Cape Argus recently that stated that the new port manager has confirmed that E dock will become a dedicated cruise terminal. Anyone see it?

Images here: http://futurecapetown.com/2012/05/cape-town-to-get-cruise-liner-terminal/

Images here: http://futurecapetown.com/2012/05/cape-town-to-get-cruise-liner-terminal/

Yeah but her article suggested there's been more word since then? Heard anything new within the past week?

Yeah but her article suggested there's been more word since then? Heard anything new within the past week?

I will share when I can share. I have also been promised images of the Silo redevelopment, CT station building.

Sweet, shot.

It's official :banana:

Cape Town to get dedicated cruise terminal
2012-12-10 08:22

Cape Town - The Transnet National Ports Authority has confirmed plans for a permanent passenger liner terminal in Cape Town’s Harbour since the controversial Department of Home Affairs directive in January this year that cruise liners docking in Cape Town should do so first at Duncan Dock and not the V&A Waterfront.

Tourism Update reports that Transnet has finally decided to go ahead with the construction of the permanent cruise liner terminal, which will feature an arrival and departure facility with restrooms – the dedicated facilities could encourage more international cruise liner operators to include Cape Town on their itineraries but the process can take up to two years to complete.

Passengers on board the MSC Sinfonia, recently stranded in the Port of Cape Town due to strong winds, complained about two-hour delays when boarding. Allan Foggitt, Marketing Director, Starlight Cruise said, “It was the first call of the ship in the Port of Cape Town for the season. We were using the facilities provided to us by Portnet and there were a few teething problems – certainly from the immigration side but it’s a work in progress. Portnet have managed to overcome a lot of hiccups that we found this time round, for instance the baggage carrousel wasn’t working. All things are being discussed with Portnet and we’re looking how we can streamline this process.

There has been a subsequent increase in vessels calling at Duncan Dock’s E-Berth, according to Coen Birkenstock, Manager: Corporate Affairs, Port of Cape Town. The Deutschland, MSC Sinfonia, Europa, Hanseatic and Black Watch are all expected to dock in Cape Town in December.

Passengers disembark through a temporary arrival hall at E-Berth, which is currently being refurbished. Birkenstock describes the area as clean and habitable but not ideal due to the overhaul taking place – this is expected to be completed in February. The Port of Cape Town will, however, be ready for cruise passengers this summer peak season, he says.

Alan Winde, Western Cape Minister of Finance, Economic Development and Tourism,said: “We’ve been informed by cruise liner operators that the E-Berth facility has been improved significantly and that they’re satisfied with the interim facilities.” He adds however that it would be ideal if smaller cruise liners were allowed to dock at the Waterfront.

Source: News24 (http://www.news24.com/Travel/South-Africa/Cape-Town-to-get-dedicated-cruise-terminal-20121210)

Awesome awesome news...

Good to see both our major ports are on the cards to get dedicated cruise terminals.

Another article
Cape Town gets cruise terminal

Transnet has given the go-ahead for a dedicated berthing terminal for cruise liners in Table Bay Harbour, in Cape Town, it was reported on Tuesday.

Ports authority spokesman Coen Birkenstock told the Cape Times the new terminal would be completed within the next two years and would feature an arrivals and departures facility, and restrooms.

From next month, the authority would finalise the process of identifying suitable investors and operators.

He said it would possibly encourage more international cruise liner operators to include Cape Town on their itineraries.

Since January, liners had been required to berth in the Duncan Dock because the home affairs department banned liners exceeding 200 metres in length from berthing at the V&A Waterfront, citing safety concerns.

Shipping agents and tourism officials reportedly felt Duncan Dock put Cape Town in a bad light, because it was an inconvenience and unfriendly to well-heeled travellers.

According to Economic Development MEC Alan Winde, 19 visiting cruise liners brought about 11,444 passengers to the province last year.

He welcomed the authority's decision, which he said would potentially attract more visitors.

Any movement here?

"suitable investors" should give it away? who's going to invest in something like that? whats the return on the investment and isn't this something that central government should pay for and operate?

maybe its their way of getting out of it? There's no incentive for government to build it, there are not the passenger volumes like Durban and in Durban they are even combining it with new Transnet offices and retail. The CT site can't accommodate that can it?

nope, I read the draft harbor plan a few years ago and the seasonal nature and inability to sail anywhere (not like Durbs with its short trips to mozzam), makes CPT simply a stop and go location. yes there is the odd sail around for a few days but its not sustainable. If Government cant make it stack, how can real money take it seriously? Problem is the cruise terminal and on/off load facilities exist in CPT, its in Customs house and has a swing out bridge . needs an upgrade but exists

Giles, you mentioned before about the swing-out bridge at Customs House... where is this and how does it work? That building looks so far from the water's edge...

havent seen it my self but its was referred to in a draft document on the "de cluttering " of the harbor. If one looks back over the years back to 60s I believe there are pictures showing it out

The Transnet National Ports Authority confirmed yesterday that the request for proposals for the development of cruise terminals in Durban and Cape Town would be advertised in local and international publications in the next week.

Source: IOL Property (http://www.iolproperty.co.za/roller/news/entry/companies_bidding_for_durban_cruise)