Drakensberg Cable Car

www.ecr.co.za/news-sport/news/many-benefits-expected-cable-car-route-mabuyakhulu/

He says currently the tourist arrival in Durban currently is 300 000 and a study conducted has shown that this number will increase by 100% because of the 7km cable car route proposed to be in the Busangathi Valley.

That is a convenient way of getting around the 526% required growth to the region

"We also see that it will increase investment opportunities in the region of between R7 billion to R8 billion. These are the spin offs that will come out a R500 million investment on the cable car and cable way," Mabuyakhulu said.

Good to know that inflation and a weakening rand doesn't change the price of a cable car where more than half the cost relates to imported components

"We will be hosting the investment conference in the month of June around the cable car because we think this is a catalyst," he said.

I see the registration process is still only 'Invitation only'.

NEW TENDER DOCUMENT ISSUED

www.sa-tenders.co.za/content/appointment-multidisciplinary-professional-complete-full-feasibility-study-development

I presume that this includes the full EIA.

Thanks for sharing, Steve

Looks like they want a new feasibility study. That is rather curios. Notable that this request is from Ithala, I thought they were the ones who planned to fund the project - perhaps it is a separate one for them to determine if they will get a return on their investments.

I think this is an overarching study including EIA. They went off half-cocked last year issuing the tender for the EIA before they realized that the EIA had to include specialist studies so they withdrew it and now I think this is the replacement.
DETEA outsourced management of the tender to Ithala and KPDH is a subsidiary of Ithala and I guess they need some work.
Whether Graham Muller & Associates work is simply going to be updated and included or whether it is going to be redone remains to be seen.
Ithala is not famous for always investing money wisely so I doubt they are too concerned about the viability. Typical of government or quasi government that does not have to concern itself with creating and maintaining a revenue stream.

And this was in the same paper (Mercury)on Monday 9th May which cancels the previous tender.

Hi there,

For your info, as a KZN Tourism stakeholder I have been invited to a conference to promote the Drakensberg Cable Car. Those guys keep pushing. Unfortunately I won't be able to attend. I would have loved to see who's behind this crazy idea.

(I am personally against the project for various reasons, but indulge me a sec...)

What would be your stance on this project if:
1. A fair and impartial environmental impact assessment shows no more damage to the environment than what is acceptable for a certain area up to the limit for a build project of this size.
2. Think of table mountain and what the cableway have done for tourism there. Based on the table mountain example you can reasonably expect the following to happen at the berg:
- extensive hiking paths in the day-hike range vicinity up top.
- at least 2 or 3 popular hiking routes to walk up to the caleway station; or ride up and walk down.
- shops opening at both ends of the cableway
3. Alternate job opportunities for the local basotho people, maybe as guides with the top cableway station as basecamp with an "office".
4. Possible MCSA office up top (meaning the upper cableway station).
5. Emergency services up top.
6. Enhanced safety due to better controls and presence, maybe even better cell\radio reception.
7. What if the whole cableway endeavour (see what I did there?) actually becomes financially viable and is managed properly and responsibly?

(I have deliberately excluded the corruption potential from the above equation, we all know a back pocket will be lined in some way or form here. But even so, what if the project turn out to be successful?)

This will drive a lot of hiking traffic to the berg. Is this a bad thing?

Coeta wrote: 7. What if the whole cableway endeavour (see what I did there?) actually becomes financially viable and is managed properly and responsibly?

One of the biggest downfall of the project, IMO is the financial aspect. I did a review of thr business plan for ACT and WAG a while ago regarding this. You can download it at:
www.maloti-drakensberg.co.za/cableway/documents/Newman-Review-of-Final-Draft-Business-Plan-for-Busingatha-Cableway-Dec-2013.pdf

The probable response to your analysis from the KZN Provincial Government would be that the positive economic externalities in the communities would effectively raise the net economic value of the project. This is really an incalculable value and could well miss a number of negative economic externalities.

We would do well to remember that it is local municipal election time and such "projects" are generally touted at this time to keep up appearances in respect of developmental issues (even if these elections have nothing to do with the provincial government etc). There are many similar things in the Eastern Cape that crop up around election time.

Another thing to consider is the ability for Ithala and other state-owned entities to raise this kind of capital with the capital markets being in flux with the downgrade possibilities and Treasury (whom is the final entity in a chain of guarantors from which Ithala would receive its backing) being very tight at present.

I am not convinced that KZN has half a billion Rand to throw at this, when those funds could be more profitably applied to water augmentation projects in the province etc.