The V&A Waterfront, which has been awarded the right to finance, design, build and operate, for 20 years, the Cape Town cruise-liner terminal, expects the redevelopment of the terminal to be completed by December 2017. The terminal upgrade makes up the first phase of a larger three-phase site revamp, which is expected to cost R178-million.

Following a competitive process, the company, owned by Growthpoint and the Government Employee Pension Fund, was selected by Transnet National Ports Authority as the preferred bidder to upgrade the facility, located at the Port of Cape Town’s E berth, Duncan Dock, where liners of up to 225 m in length can be accommodated.

“It is an initial two-year redevelopment project of the existing terminal building, with completion of the passenger terminal due in December 2017,” CEO David Green reports.

However, the mandate will begin in September, ahead of the upcoming cruise season, which runs from October through to May. Cape Town is expecting 19 international cruise ships over the season.

The upgrade is being designed to enhance the passenger experience by making the terminal an extension of the popular V&A Waterfront, which attracts up to 100 000 people a day during peak season.

“The terminal building is in close proximity to the Silo District, which is set to become a major hub, with the development of the Zeitz Museum of Contemporary Art Africa,” Green explains, noting that property developments worth R1.5-billion are currently under way in the area for completion by early 2017.

He says an economic impact assessment has shown that the developments taking place across the 123 ha V&A Waterfront could contribute a cumulative R223.7-billion to the nominal gross domestic product by 2027. “The investment into the redevelopment of the passenger terminal would contribute to this figure.”

The terminal building will also be developed as a multi-use facility to ensure year-round utilisation, notwithstanding the seasonality of the cruise industry. Besides introducing the necessary baggage-handling and customs facilities, Green reports that retail activities associated with the terminal will be scaled up, or down, in response to demand.

“We believe in the power of the cruise industry and its need for a well-managed terminal in Cape Town,” he adds, describing cruise-liner tourism as one of the fastest growing areas of tourism globally.

The industry is currently estimated to bring about 10 000 visitors to the Western Cape yearly, generating more than R200-million for the local economy.