Drakensberg Cable Car

01 Aug 2013 07:13 #57887 by plouw
Replied by plouw on topic Drakensberg Cable Car
I was just wondering about something... (I am 100% against this cable car idea or any new infrastructure in the berg) ... would it not be more feasible, from a investors point of view (although we would all hate the idea), to rather construct a mini "Sani top" type restaurant and accommodation on the escarpment. (a structure with say a 10 year life span that can be dismantled after its served its lifetime) Then offer helicopter flips (you have to cater for the elderly and disabled) or hikes to the restaurant / accommodation and back. Catering for the better paying customers. Promoting eco-tourism rather than dragging hundreds of clueless tourists up there. Quality vs. Quantity. Teach the tourists things about the berg. This will hopefully make these people fall in love with the berg and they'll understand that it needs to be protected.

Not provide the typical Cape Town thing of quick up, take your photo, and down again. That is bordering on a theme ride and cheap entertainment.

It doesn't make sense to me to construct a permanent structure and dragging hundreds of tourists up there. How will they get those sort of numbers in that remote part of the country.
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01 Aug 2013 07:26 #57888 by ghaznavid
Replied by ghaznavid on topic Drakensberg Cable Car
Helicopter rides are very expensive, noisy, cause air pollution etc. They also have a low tolerance for wind and can't fly in the mist.

They will surely have to build a restaurant at the top like they have on top of Table Mountain and at Hartebeestpoort Dam. If you build a cable car, to not build a restaurant would just be illogical. Its the one thing that would almost certainly be profitable (aside from security costs as looting would be a risk).

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02 Aug 2013 02:07 - 02 Aug 2013 02:08 #57898 by intrepid
Replied by intrepid on topic Drakensberg Cable Car
Am still mulling my way through the report, and will be for some time.

A thought I want to put out for now is that around the results of the survey conducted in 2005. The results of this survey were positively in favour of the cable car. Yet most comments Ive read from the public, be it on Facebook, forums (not just this one) and responses to media articles, are strongly opposed. I find this a very interesting contrast!

By the way, there is an existing Facebook poll: Should there be a cable car in the Drakensberg? So far 79 have voted No, and 8 have voted Yes.
www.facebook.com/questions/10150859039659118/
I like to make an appeal that everyone help by re-sharing the link on FB and encourage your friends to consider the proposal and cast their votes. Make sure they understand to vote and not just comment NO.

In closing for now, a question I'd like to put out there: how many sustainable jobs should R500 million realistically be creating?

Take nothing but litter, leave nothing but a cleaner Drakensberg.
Last edit: 02 Aug 2013 02:08 by intrepid.

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02 Aug 2013 15:50 #57912 by Stijn
Replied by Stijn on topic Drakensberg Cable Car
What has concerned me most in that report are the following suggestions:

"Possible Linkages to Lesotho and the Free State
A number of possible linkages to Lesotho and the Free State have been identified for the
cableway project:
 Cableway can be extended from Mount Amery to Mont-aux-Sources on the Lesotho
border (5.5kms). This will require passports and establishment of border controls and
will cost an additional 60% of the initial capital outlay.
 4x4 track exists from Lesotho border to the Afriski snow skiing resort (about 20kms
away) and these can be upgraded to link the cable car with the A1 through Lesotho.
 Potential for tourists from KwaZulu-Natal to access a day’s skiing in Lesotho and
return via cableway back to base or overnight at Afriski in Lesotho and return the
next day"

:thumbsdown:

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03 Aug 2013 15:05 - 03 Aug 2013 15:07 #57918 by ghaznavid
Replied by ghaznavid on topic Drakensberg Cable Car
I've read through the full report, I have 2 pages of notes for a reply. It will take a while to properly writeup though...

Might have a go at running a proper 5 year simulation on the business to calculate how the numbers come out.

Stijn wrote: What has concerned me most in that report are the following suggestions:
...
 Cableway can be extended from Mount Amery to Mont-aux-Sources on the Lesotho
border (5.5kms). This will require passports and establishment of border controls and
will cost an additional 60% of the initial capital outlay.

I think that would generate a bigger outcry than the current proposal.
Last edit: 03 Aug 2013 15:07 by ghaznavid.
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04 Aug 2013 18:37 - 04 Aug 2013 18:38 #57919 by ghaznavid
Replied by ghaznavid on topic Drakensberg Cable Car
Ok - I have run some numbers on the cableway based on what was said in the proposal. They are attached



Assumptions:
- R400m option is taken
- R500k in vehicle requirements
- R50k in furniture and fittings/office equipment
- R2m for a restuarant/cafe on top, including oven etc
- 250 000 adults and 150 000 children per year
- there will be a cafe/restuarant where 200 000 people will spend R50 each year
- Running costs are R15m per year
- R3.5m will be the cost of running the cafe
- R600k rental cost for the land
- R100k per year audit fee
- R120k advertising
- R4m insurance
- R50k motor vehicle expenses
- R50k printing and stationery
- R14m R&M as per feasibility study
- R1.2m security
- R60k telephone
- 30 staff members as per feasibility study
- R40m is equity funded
- Rest is through instalment sales at 9%

This is very rough. As you can see, in year 5 the company makes its first profit - but is still insolvent by over R5m. Btw the income tax income is deferred tax income (tax for accounting purposes) - it actually makes the numbers look better.

Disclaimer

The above and attached does not constitute advice, a service or any other product. I have not audited the figures, nor have I performed a due diligence on them and accordingly I express no assurance on the above or any other related information.

Please login or register to view the file attached to this post.

Last edit: 04 Aug 2013 18:38 by ghaznavid.

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05 Aug 2013 05:47 #57921 by intrepid
Replied by intrepid on topic Drakensberg Cable Car
I see the above News24 link was a reference to the City Press article:
www.citypress.co.za/news/drakensberg-cable-car-debate-is-back/
They got the statistics wrong the whole lightning strike thing, but anyway.

Note once again the comments on the News24 article: people are against the idea!

Take nothing but litter, leave nothing but a cleaner Drakensberg.
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05 Aug 2013 08:18 #57922 by Selous
Replied by Selous on topic Drakensberg Cable Car
Great work Ghazi and Intrepid. Your efforts are appreciated from me and I am sure everybody else on the forum.
Regards
Selous

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05 Aug 2013 09:55 #57923 by ghaznavid
Replied by ghaznavid on topic Drakensberg Cable Car
Re the facebook poll, I have shared it on the MCSA KZN page, and managed to get the Cavern and Drakensberg Gardens to share it as well.

I see we are up to 145 votes, 11 for 134 against.

In the feasibility study they quoted 750 people surveyed, so it would be nice if we could get to 200 at least. There will always be a bias in our results due to the less than scientific method of a facebook poll, but the resorts should be bringing in votes on people who love the Berg, but don't enjoy hiking or aren't fit enough to hike to the top.

@everyone who is on fb but hasn't voted, please vote, we won't hold it against you if you are pro the cablecar and vote in favour :laugh: Please also share the poll, the more votes we get, the more reliable the results will be.

The poll is at: www.facebook.com/questions/10150859039659118/
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