AIRPORT DEVELOPMENT NEWS

A service provided by ACI World in co-operation with Momberger Airport Information

AFRICA
The Gambia: On 9 July 2009, Members of the National Assembly ratified a loan agreement between the
Republic of the Gambia and the OPEC Fund for International Development for Phase 2 of the Banjul Airport
Rehabilitation Project. The US$ 8 million loan aims at meeting the ever-increasing demand for handling passenger as
well as cargo traffic and in particular the requirements for the tourism sector. The objectives of the project will be achieved
by implementing the following civil works: The rehabilitation and expansion of the concrete taxi area; construction of two
new corridors; construction of a new fire and rescue station; rehabilitation and expansion of the passenger arrival and
departure terminals; rehabilitation of the control tower; and supply, installation and operation of certain related equipment.
Consultancy services are included in the project.

Uganda: In an attempt to improve facilities at upcountry airfields, the Civil Aviation Authority has started construc-
tion of a new state-of-the art terminal at Arua Airport, the country’s second busiest after Entebbe. While pre-
siding over the ground-breaking ceremony for the project, Minister of State for Transport, Simon Ejua, said development of
facilities at Arua was in line with the Government‟s pledge to transform the air transport industry through the upgrading of
upcountry airports at Arua, Kasese, Soroti, Jinja, Tororo, Adjumani, Moyo, and Nebbi, among others. Construction of the
new terminal at Arua is expected to be complete within eight months. -- Arua serves six airlines including Eagle Air, Mission
Aviation Fellowship, Air Serve, Kampala Aero Club & Flight Training Centre, and AMREF.

WESTERN ASIA
Saudi Arabia: The General Authority of Civil Aviation (GACA) has signed an agreement with the Interna-
tional Financial Company (IFC) to begin the process of expanding ‘Prince Mohammed bin Abdulaziz Airport’
in Madinah to meet international standards and increase the annual capacity to 12 million passengers by
2019. The US$ 2.4 billion project, which will be completed in three phases, includes construction of a second runway as
well as a new passenger terminal covering a surface area of 256,000 m², renovation of the existing runway, and construc-
tion of commercial areas. The decision to expand the holy city‟s airport has been taken amid the growing number of pil-
grims who visit Madinah every year because of the city‟s significant position in the Islamic world. “The IFC has been in-
volved in development projects in several airports in the Kingdom, so it is an excellent opportunity for GACA to benefit from
the company‟s experience,” said Abdullah al-Ruhaimy, President of GACA. Several projects will be established in the first
construction stage, such as, building pilgrims‟ halls, improving the runways, and developing the infrastructure. Ruhaimy
added: “We are going to build a large number of halls to be used for the arrival and departure of pilgrims and those per-
forming „Umrah‟ [circling the Kaaba seven times before the hajj proper], which will help to reduce the crowded conditions
of „King Abdul Aziz International Airport‟ in Jeddah.”

Kuwait: Dr Fadhil Safar, Kuwait’s Minister of State for the Municipality & Public Works, said that the coun-
try needs a second airport in order to cope with the increasing number of travellers, which the government
projects will rise steeply in the future. A second airport would turn Kuwait into an international financial and commercial
centre, Safar said. Plans are already in hand for the engineering, procurement and construction of a new ter-
minal building to increase passenger capacity to 20 million at Kuwait International Airport. The new 90,000-
m² terminal will be located to the south of the existing one. The client, Kuwait‟s Directorate-General of Civil Aviation
(DGCA), has invited international consultants to submit designs for the terminal by the end of November 2009. Meanwhile,
another project worth US$ 100 million calls for the design and construction of infrastructure for the existing airport. The
scope of work will include runways, aprons, roads, and utilities.

Oman: Construction work on a new airport at Sohar will begin shortly following the award of a key contract
for Phase 1 development of the project to Strabag Oman LLC at a cost of US$ 97.4 million. This contract will
pave the way for the beginning of work on airfield facilities and a passenger terminal. The new airport will serve both Sohar
and the wider Batinah region, creating a new gateway for passenger and cargo traffic in northern Oman. It will also be a
domestic and emergency alternative to Muscat International. The entire complex will be designed to IATA Class-A stan-
dards, as well as the recommendations and standards of ICAO. Development of the facility is envisaged in three
distinct packages. The passenger and cargo terminals, as well as associated buildings, will be constructed as part of the
third package of works. The airport will be equipped to accommodate and support aircraft as large as the Airbus A380.
Egypt-based engineering consultancy group Hamza Associates is the design consultant for the Sohar Airport
project. Hamza Associates is supported by U.S.-based engineering, architecture and planning specialists Robert & Company
and Burgess & Niple in the design of the facility.

EUROPE
Poland: The European Commission gave the go-ahead to aid arrangements worth around EUR 500 million
(US$ 705 million) for ten of the country’s airports. The support measures notified by the Polish authorities are for the
existing regional airports near Poznan, Rzeszów, Kraków, Lódz, and Bydgoszcz, and for future airports to serve Lublin,
Modlin, the Podlasie region, Olsztyn-Szymany, and Zegrze Pomorskie. The small regional airports can benefit from subsidies
equal to the full investment costs, while support for the medium-sized Poznan and Kraków airports is limited to 76% of the
costs. The measures will be co-financed by the European Regional Development Fund to the tune of around EUR 192 mil-
lion. The aid will be granted by the national, regional and local authorities. Among other things, it will be used to help with
construction of new terminal buildings and more modern runways. It may take the form of subsidies, transfers of land and
equipment, or injections of capital. The Commission decided that the measures served clearly defined objectives that are in
the wider public interest, such as the development of transport networks and making the regions concerned more accessi-
ble. It also found that the aid was proportional and necessary. The measures were, therefore, deemed to be compatible
with the EC Treaty.

Norway: Oslo Airport has opened a new section of its terminal building, adding 4000 m² of new space on
two floors, 14 check-in counters, and a new baggage-handling system. The extension means that Oslo is now
capable of handling 22 million passengers a year (2008: 19 million). It consists of lengthening the terminal 36 m eastwards
- in full height. This provides an increase in floor space of 2000 m² at the departures level and another 2000 m² at the
arrivals level. At the departures level, there is now a larger queuing and meeting area, and there are also new check-in
facilities. At the arrivals level, there is a new baggage carousel with the same capacity as two regular baggage belts. An
independent baggage system with a capacity of 1200 baggage units per hour has been installed in connection with the
terminal extension. The total capacity will be about 4900 bags per hour. Avinor, which owns and operates Oslo-
Gardermoen, plans to build a second terminal and a new pier at the existing terminal. When completed, the
project will increase Gardermoen‟s passenger capacity to 35 million. The first expansion stage should be completed by
2012.

Italy: A Chinese delegation visited Sicily in February 2009 to evaluate the setting up of an intercontinental
airport as a logistics hub near Enna in the centre of the island. The planned airport with a 5000-m runway would
interact with Catania-Fontanarossa, which is primarily a passenger airport – the fourth-busiest in Italy – and the seaport of
August, which the Chinese would also upgrade. The Chinese delegation led by the CEO of HNA Airport Group, Tan Xiang
Dong, has offered to finance EUR 300 million of the new airport‟s costs, with the Sicily Region and private investors ac-
counting for the remainder. The HNA Group is registered with China‟s State Administration of Industry & Commerce since
January 2000. The Group has expanded its activities in air transport, airport management, hotel business, tourism business
and other related industries. -- Apparently, the Chinese want to build an airport and a seaport for their exports to Northern
Africa and Northern Europe and create a tourist hub for the next generation of Chinese travellers. They want to build in
Sicily because they forecast an increase in consumers‟ expenditures in North Africa and the Middle-East. As matter of fact,
some data show that the southern Mediterranean area is the second area in the world - after Asia - to attract the most
foreign investments.

LATIN AMERICA & CARIBBEAN

Brazil: Defence Minister Nelson Jobim announced that BRR 600 million (US$ 268 million) will be invested in
the modernization of Galeão International Airport in Rio de Janeiro by 2011. The project will include the mod-
ernization of the passenger gates as well as the runway for the Ilha do Governador terminal. Investments will be made
independently of the airport‟s private concession initiative. A concession model should be drawn up by mid-2009 by the
national civil aviation authority Anac and national development bank BNDES. Expanding Santos Dumont airport is also un-
der discussion. The airport, also in Rio de Janeiro, handles flights between Rio de Janeiro and São Paulo, as well as some
other domestic flights. Contrary to the federal government, the state government does not fully agree with its expansion.

Mexico: The US$ 1.5 billion Aeropuerto del Lago project, in Mexico state’s (Edomex) Nezahualcóyotl mu-
nicipality, is becoming the preferred option for the expansion of Mexico City’s international airport (AICM),
according to the local environmental expert and project spokesperson Ramón Ojeda. He said Aeropuerto del Lago has
gained momentum since the appointment of Molinar Horcasitas as SCT head in early March 2009, increasing the chances of
Nezahualcóyotl being chosen as the site for the airport. Aeropuerto del Lago is projected to be built on 420 hec-
tares of Federal land that covers the Bordo Poniente landfill and the dry bed of lake Texcoco. The project was
announced on 28 November 2008 by a committee comprised of representatives of AICM, the Federal District (DF), Edomex,
Nezahualcóyotl and the local chapter of the International Court of Environmental Arbitration and Conciliation, headed by
Ojeda. Mexican magnate Carlos Slim is reportedly interested in investing and carrying out the project - which is also open
to local and international capitals - through his infrastructure and engineering consortium Grupo Carso. In addition to solv-
ing congestion problems at AICM, the project would enable the immediate ecological recuperation of Bordo Poniente, which
was originally scheduled for permanent closure on 15 January 2009. The facility receives up to 12,000 tonnes/day of waste
from Edomex and the DF. The project also includes the capture of greenhouse gases to sell on the carbon bonds market
and construction of lixiviates control facilities and solid waste treatment plants. However, on 12 December 2008, Lower
House representatives said the Federal Government already has studies and recommendations from international experts
that show Texcoco municipality, also in Edomex, is the best option to build a new international airport to serve Mexico City.
The location of the new airport in Edomex is becoming increasingly urgent as the current terminal is operat-
ing at the limit of its capacity and traffic continues to increase. While Texcoco municipality is considered a viable option
by SCT, others studies are under way to resolve the issue, and SCT is looking at a number of options, ranging from building
a series of terminals to a single new airport.
Bahamas: Nassau’s ‘Lynden Pindling International Airport’ is being developed with a three-stage greenfield
project due for completion in 2013. New Zealand-based Glidepath has won a US$ 21 million contract to supply a fully
integrated baggage handling, sortation and explosive detection system, starting with the supply of a new 55-counter check-
in at the U.S. Departures Terminal, with an 1800 bag/h inline explosive detection system, bag-weight imaging system and
automated baggage sortation with three large makeup carousels totalling 3500 linear feet and some 300 drives. Stage 2
includes three inbound baggage claim systems for international arrivals, while Stage 3 comprises a new International/Do-
mestic Terminal with 42 check-in counters and 3200 linear feet of baggage handling, security and sortation systems equip-
ment.

NORTH AMERICA
Canada: Transport Minister John Baird recently announced the Government’s approval for London Interna-
tional Airport in Ontario to participate in the international air cargo transhipment programme. This scheme
was introduced in 1982 at Mirabel Airport as part of a larger effort to improve the use of airports in the Montreal area. It
has since been expanded to other hubs, including Hamilton (1987), Windsor (1993), Gander (2000), Winnipeg (2004),
Edmonton (2006), Calgary (2007), Abbotsford, Vancouver, Moncton, Toronto, Halifax and Prince George (2008).The ap-
proval of London Ontario as an international air cargo transhipment hub will increase the need for products related to air-
port security and traffic, and the expansion of the airport will create opportunities for construction companies, as well as a
wide variety of intermodal transportation equipment. Imports will include air traffic control equipment, automatic cargo
unloading and handling machinery, cargo lifters, containers, and trailers.

U.S.A.: Officials at ‘Louis Armstrong International Airport’, New Orleans, have announced a four-year plan
to renovate and transform the airport. Some of those changes are happening now, and when the Super Bowl arrives
in New Orleans in 2013, visitors will be greeted by a totally updated terminal building. “We truly believe that it‟s time to
start moving out of these old facilities,” said Director of Aviation Sean Hunter. “We made our repairs for hurricane Katrina,
but now it‟s time to make improvements.” Over the next four years, the airport has more than a dozen major projects
planned for inside and outside the facility. That includes new terminal areas, additional parking, an on-site hotel, and a new
concourse. There will be a total change of the currently grey exterior, which will be largely replaced with glass all the way
down to allow natural light to come into the building. The old concourses A and B will be shut down, since officials say they
are too small to handle large aircraft. Concourse D will get additional gates and there will be a new Concourse E. Travellers
will no longer have to leave the building to rent or return a car as a new on-site consolidated rental car facility will be built.
The improvements will cost about US$ 350 million and will be paid for with grants and airport funds, as well
as a passenger facilities charge that is already being levied. Airport officials say that there will be no new charges to
pay for the upgrades. The most expensive project on the list is a US$ 114 million rental-car facility with 1800 parking
spaces that should be finished by 2012. The airport also plans to widen concourses to allow for the wider aircraft airlines
are beginning to introduce. One concourse will be expanded by six gates, with new food and retail stores and restrooms, at
a cost of US$ 40.5 million. A west terminal expansion with five gates, ticket counters, security screening and baggage facili-
ties will cost US$ 34 million, mostly paid for by passenger fees.

ASIA-PACIFIC
Mongolia: Two Japanese consultant companies, Azusa Sekkei and Oriental Consultants, have signed an
agreement with the Ministry of Road, Transport, Construction & Urban Development, Civil Aviation Authority
of Mongolia to provide their services for building a new international airport in Tuv province. The two compa-
nies have been selected by JAICA and the Finance Ministry of Mongolia. The new airport, in the Khoshigt [Khushig] Valley,
some 50 km south-west of Ulaanbaatar, will relieve the pressure on the capital‟s „Chingghis Khaan Airport‟ by offering mul-
tiple departure and arrival routes. Executing companies will be chosen through tender bids. The building and con-
struction plans will be ready later in 2009 and the tender will be announced in 2010. Construction will be between 2012 and
2015. The airport will begin operations in 2015. It will be four times bigger then the current airport, able to receive 1.7
million passengers per year and serve 18,100 flights. -- The Mongolian Government will pay for the construction with a 40-
year soft loan from the Japanese International Co-operation Bank for JPY 28.8 billion (US$ 290 million). Repayment over
the first ten years will be free of interest; thereafter the rate will be 0.2% a year.

India: The growth of air traffic in India has increased aircraft movement per airport, which in turn, has ne-
cessitated capacity expansion or the development of new airports. Airport development primarily involves the
improvement of landside and airside areas and of terminal buildings. This offers great opportunities for companies involved
in such development activities. The number of passengers is expected to increase from 102.73 million in 2008 to 290.19
million by 2014, at a compound annual growth rate of 15%. India has five major airports (Mumbai, Delhi, Kolkata, Chennai,
and Bangalore) and three airport models, namely Government-owned, privately-owned, and public-private partnerships
(PPP). Delhi, Mumbai, and Bangalore, as well as most of the airports developed in the recent past, were all based on the
PPP model. However, with the PPP model, there could be a potential issue of the Government holding all the reins. Industry
authorities and the Government could ease this anxiety by drawing up regulations. “The potential in the Indian airport
modernization market is huge and to take advantage of this, airports are also developed on the built, own and transfer
(BOT) model,” said Frost & Sullivan research analyst John Siddharth in a new study of the Indian airport market.
Apart from actively participating in airport development, the Indian government has also drawn up an airport infrastructure
development budget for metro, non-metro, and greenfield airports. There are set funds for communications, navigation,
and surveillance systems for air traffic management (CNS/ATM) and the other equipment. The revenue stream of the In-
dian airports is broadly divided into aeronautical income (70%) and non-aeronautical income (30%).

Vietnam: Phu Bai Airport in the central province of Thua Thien-Hue will be upgraded to international stan-
dards in the 2009-2020 period. Under a plan jointly approved by the Ministry of Construction and the Ministry of Trans-
port, the airport‟s terminal will cover 42,000 m², capable of serving 4000 passengers a day. The upgrade is estimated to
cost VND 17.25 trillion (US$ 970 million), of which one third will be invested between now and 2020, the remainder until
2030. Changi Airports International Pte Ltd (CAI), a wholly-owned subsidiary of the Civil Aviation Authority of Singa-
pore (CAAS), will help upgrade the airport. At a working session with the provincial authorities on 2 October 2008, a
representative of Changi Airports presented his improvement plan for Phu Bai. By bettering the airport‟s capacity, the plan
aims to increase Phu Bai‟s flight frequency and draw more airlines to get involved in its operation. On 26 February 2009,
Changi Airports International (CAI) signed a Memorandum of Understanding (MoU) with the Middle Airport Authority (MAA)
in Hue to invest in and develop Phu Bai International Airport. This is the first time a foreign business was approved to in-
vest in developing an airport in Vietnam. The project will be implemented in two phases at a total cost of US$ 137 million.
As soon as Phase 1 is completed, Phu Bai Airport will be well-equipped for widebody aircraft. The local administration
pledged to create most favourable conditions for the Singaporean investor to implement the project in the earliest time. --
Phu Bai International Airport is the fourth largest in Vietnam and is an ideal gateway for businesses and tourists to travel to
Central provinces. It was built on an old French military airfield back in 1948. At present, it is managed by the MAA and
welcomes more than 500,000 tourists each year.

Cambodia: The renovation of Ratanakkiri Airport is to include a runway extension by 200 m to 1500 m,
improved safety equipment, and a new terminal, transforming the facility from a dilapidated provincial air-
strip to something more appealing. Officials claim the airport is key to the province‟s future as a gateway for tourism,
but soon-to-be evicted households need to be compensated. Ratanakkiri provincial officials expect more tourists to take
domestic flights to the isolated province once renovations to the airport are completed, but determining compensation for
those evicted as a result of the airport‟s expansion poses one last hurdle before construction can begin. -- With the recent
promotion of Ratanakkiri as an ecotourism hotspot, the airport‟s reopening cannot come soon enough. “Ratanakkiri is dif-
ferent from other provinces because it is the ecotourism province. But right now, it takes a long time to travel to Ratanak-
kiri province by roads,” said Sinn Chan Sereyvutha, who is managing the Ratanakkiri Airport upgrade on behalf of the State
Secretariat of Civil Aviation.

Australia: The approved Master Plan for Sydney Airport outlines the vision for the operation and continued
development of Australia’s leading airport to the year 2029 and is based on: * No changes to the curfew; * No
changes to flight paths; * No changes to the aircraft movement cap; * No new runways; and * No change to access ar-
rangements for regional airlines. The approved Master Plan 2009 forecasts that passenger numbers will gradually increase
by an average of 4.2% each year to reach 78.9 million passengers in 2029. The CEO of Sydney Airport, Russell Balding,
said that the approved Master Plan 2009 demonstrates that Sydney Airport will sustainably manage the forecast growth in
airline travel. “Airport facilities including terminals, hangars, aprons, freight facilities, car parking and airport roads will all
be progressively upgraded over the next 20 years. Importantly, the forecast noise footprint for Sydney Airport in 2029 has
been reduced relative to that forecast for 2024. This is because new aircraft are larger, quieter, cleaner and more fuel effi-
cient, a trend that will continue over the next 20 years,” Mr Balding said. -- Work on the Master Plan started in 2007 and
has involved contributions from internationally recognized experts in their particular fields of aviation and airport planning.
Sydney Airport is one of Australia‟s most important pieces of transport infrastructure. It makes a substantial economic con-
tribution to Sydney and NSW directly generating more than 75,000 jobs directly and a further 131 000 jobs indirectly. The
airport is the national gateway and handles about 45% of Australia‟s international passengers.

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