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Durban Airport project stuck in lease dispute

12 Feb 2025 - by Kiran Molloy
 Source: South African Heritage Resources Information System
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Correction to Paula Martini's comment: "no flights to George...", was changed to "limited flights to George...".

The redevelopment of the old Durban International Airport remains in limbo as a legal battle over lease and bid agreements continues. Efforts to transform the abandoned site into a secondary airport or logistics hub have faced significant setbacks, with competing claims over lease cancellations and alleged procedural flaws in the bidding process.

Three-way dispute stalls airport redevelopment

In 2017, the owner of the airport, Transnet Property, signed a 10-year lease with Seaworld Aviation. Seaworld intended to establish a hub for smaller airlines, improving connectivity to the South Coast, reports businesstech.co.za.

In 2018 Transnet cancelled the lease, because Seaworld had allegedly violated sub-leasing rules. According to Transnet Property, Seaworld had sublet the airport to tenants not related to aviation. Seaworld, on the other hand, claims that Transnet had failed to evict its tenants, hindering its plans to reopen the airport. A multimillion-rand dispute over the terms of the lease is currently in court.

Adding to the complexity, another bidder for the lease, Amabhunesi Property Holdings, has challenged the process, alleging that its bid to transform the site into a logistics hub was unfairly blocked.  

Government investigation under way

In late 2024, President Cyril Ramaphosa authorised the Special Investigations Unit (SIU) to examine the lease agreements as part of a broader inquiry into multiple Transnet properties.

“This investigation will focus on leases that were potentially facilitated through unlawful or improper conduct by Transnet employees, officials, agents, or any other involved parties,” said SIU spokesperson, Kaizer Kganyago.

While the dispute drags on, some travel industry experts question whether Durban needs a second airport at all. Paula Martini, Author and Owner of CoTravel, said efforts should focus on optimising existing infrastructure instead of pursuing a new facility.  

“We need to get our current airport, King Shaka International Airport (KSIA), sorted out before we build a new airport. We currently have a quarter of the flights that could be flying into KSIA. We only have Qatar, Turkish Airlines and Emirates when we used to have British Airways and Air Mauritius. Additionally, the flights between Cape Town and Durban are minimal and we've got limited flights into George, Port Elizabeth, East London, and Nelspruit, so Durban is not anywhere near its full capacity and potential,” said Martini.

She believes funds would be better spent on improving tourism infrastructure in the province, such as upgrading Durban’s promenade and boosting attractions along the South Coast, to increase demand for travel to KwaZulu-Natal.  

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