South Africa is to mount its first ever full-scale America's Cup Challenge at the 32nd edition of the historic 153-year-old yachting event to be held in Valencia, Spain in 2007.

Held every four years, the America's Cup is regarded as the most esteemed sporting event of modern times. It attracts the most technologically advanced nations around the globe in what has become the fiercest of competitions for the world's oldest and most prestigious trophy. The 2007 event will see the America's Cup being defended in Europe for the first time in 153 years following the Swiss defeat of New Zealand in 2003.

Today's official announcement of South Africa's America's Cup Challenge was made by Captain Salvatore Sarno, chairman of Mediterranean Shipping Company (MSC) South Africa, who is also managing director of the South African America's Cup Challenge, and is driving the multi-million rand, three and a half year campaign as a "Proudly South African" initiative that he hopes will involve the participation of the entire nation.

Known for his huge vision and ability to bring reality to impossible dreams, Captain Sarno is utterly convinced that South Africa has the "people, skills, technology and resources" to succeed in the venture and has already spent a number of years meticulously working at putting key aspects of the campaign in place.

The South African Challenge has already been enthusiastically welcomed by Mr Nconde Balfour, the Minister of Sport, who has given his backing to the Challenge and assured full support.

Cape Town's Royal Cape Yacht Club has been nominated as the SA Challenge club.

The campaign will involve the local design and building of two highly sophisticated, state-of-the-art 25 metre America's Cup racing yachts, to be aptly named "Shosholoza", a three month seeding regatta series in Europe in 2005, sail training and sea trials for the new Shosholoza yachts off Spain in 2006 and the Louis Vuitton elimination regatta in Valencia in 2007 which will decide the new Challenger to contest the Swiss for the Cup.

Captain Sarno's announcement coincides with the arrival in Cape Town by ship tomorrow night (Sunday 7 March) of the 25 metre America's Cup Luna Rossa yacht which was built for the Italian 2000/2003 Prada Challenge. It was bought earlier this year by the South African America's Cup Syndicate for 520 000 Euros and will always remain in Cape Town for sail training purposes.

The ship which will be offloaded on MONDAY morning is the first America's Cup yacht ever seen in Cape Town and officially marks the start of the South African Challenge.

An exuberant Captain Sarno, a long time supporter and sponsor of South African local, international and Olympic sailing, who has passionately pursued a dream of a SA America's Cup Challenge for some years said. "This is the start. This yacht is here. It exists. Our Challenge exists!"

He said the Luna Rossa yacht will be re-fitted, re-rigged and dramatically "re-dressed" in the official SA Challenge colours - a black hull with a beaded wave pattern in the bright colours of the SA flag - for its re-launching next month (10 April). It will be based at the newly established South African Challenge headquarters in premises specially made available in the V&A Waterfront through invaluable support from the Manager, Bill Shewell and the Managing Director, Derick van der Merwe". Sail training will start immediately.

Sarno said he was honoured to announce the appointment of Mr Mafika Mkwanazi, former CEO of Transnet as President of the SA America's Cup Challenge. Other appointments include top SA yachtsman Geoff Meek as skipper, Paul Standbridge, a professional yachtsman and veteran of three America's Cup Challenges as sailing manager, top British yacht designer, Jason Ker, who will head a locally-selected design and yacht building team, Manuel Mendes as technical advisor and Henri Hiddes as shore manager.

Meek is a world champion yachtsman who was the alternate skipper for the British team in their pre-America's Cup trials in Freemantle in 1987. He has won many big boat events over the years, among them the Fastnet Race, Cowes Week, the Sydney Hobart Race, the SORC Race Week in Miami, Block Island Race Week off New York, Sardinia Cup, the Southern Cross Cup in Sydney and the Onion Patch regatta in Newport. He was also invited to skipper one of the 82 foot Maxi's in a European Series organised by Ernesto Bertarelli, head of the Swiss Alinghi Challenge, the current America's Cup defending champions.

Meek has also won every major offshore regatta in South Africa and holds the record of 20 Table Bay Race Week championship titles.

Standbridge, who was bowman for the British team in the 1987 America's Cup Challenge and sailing manager for the British in the 2003 event in Auckland, will be responsible for the selection and training of a team of at least 60 sailing and shore crew.

Sailing crew members signed up so far are: Ian Ainslie, David Rae, Golden Mgedeza, Ashton Sampson, Marcello Burricks, Marc Lagesse and Guido Verhovert. A further four top South African International sailors who will join the yacht on a part-time basis are Jan Dekker, Jonathan Swain, Mike Joubert and Michael Giles.

The full crew compliment will be selected during selection trials, which will be held throughout this year.

In a telephone interview from England, yacht designer Jason Ker said he had already packed up his office and would move to South Africa within a week. He had visited South Africa a few times and was very impressed with the local yachting industry. His most successful racing yacht, the Ker 55 was built in the Cape Town boatyard, Acheson Rossa, and he was utterly delighted to be part of the SA Challenge. "To be given the opportunity to design an America's Cup yacht represents the pinnacle of our profession," said Ker.

The South African Challenge Syndicate has been incorporated as a Section 21 Company (non-profit) which will be represented legally by Shepstone & Wylie and administratively by Ernst & Young, who are also the auditors and trustees.

Captain Sarno who already has sponsorship commitments from a broad base of some 19 South African corporate companies said Mediterranean Shipping Company, a Geneva-based company, had undertaken to be the first of the 20 corporate firms to sponsor the Challenge as part of MSC's 25 anniversary celebrations in South Africa. MSC is the second biggest container line in the world.

The SA America's Cup Challenge Syndicate will also be used to promote different children and youth foundations.