Gateway modernisation

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Airport infrastructure projects in developing markets are worth a fortune for contractors, but there are challenges to be overcome

This year began with yet another flamboyant event at Dubai International Airport (DXB): the initial launch of a phased opening of Concourse A, part of the gateway’s Terminal 3 and the world’s first A380 facility. Four of its 20 gates were brought into operation during the first week of January.

“Over the last few months, our preparatory work moved into high gear. We learned a lot from our experience with Terminal 3,” explains Paul Griffiths, CEO of operator Dubai Airports. “We learned that the big bang theory is not the best approach when it comes to opening an airport. Soft launches following rigorous testing and operational trials are the only way to go.”

The new concourse is spread over more than 500,000 square metres through 11 levels. It features 20 gates and 13 remote stands.

Even before the dust had settled, Dubai Airports Company announced that work would begin on the refurbishment of DXB Terminal 1 during the first quarter of 2013. Work being carried out on T1 includes the refurbishment and streamlining of baggage screening in the departures hall, the replacement of all check-in desks, the upgrade of baggage systems and the modernisation of all public areas.

It is in the Middle East that a sizeable chunk of the world’s airport infrastructure development is taking place. Active right across the MENA (Middle East and North Africa) region, as well as in Eastern Europe, Turkey’s TAV Construction has been involved in a number of particularly big airport development projects. According to general manager Umit Kazak, the company follows airport expansion projects in the emerging markets very closely.

“Given the growing demand for large infrastructure projects fuelled by the oil-rich economies, there are a lot of opportunities for both local and international contractors. Most of the leaders of these countries have the money and the vision to transition their economies so that they do not have to depend merely on oil revenues in the future. Therefore, they are bringing the necessary resources together to visualise these ideas,” Kazak notes.

He outlines some ongoing projects involving TAV that include Qatar’s New Doha International airport, which will be renamed Hamad International airport when the much-delayed hub finally opens in the second half of 2013. Other Middle Eastern gateway infrastructure developments in which the company is playing a role include those at Muscat International airport, at Prince Mohammed Bin Abdulaziz International airport in Medina and aircraft maintenance hangars at Jeddah airport.

Nearby, the construction site at the Midfield Terminal Building (MTB) in Abu Dhabi will be a hive of activity over the next five years. Abu Dhabi Airports Company (ADAC) scrutinised numerous bids for the Dh10.8 billion (US$2.94 billion) project and, in June last year, the company awarded the winning contract to the joint-venture company created by the Turkish construction group TAV, Consolidated Contractors’ Company (CCC) and the UAE’s Arabtec.

The new passenger terminal building is expected to be extremely impressive. Featuring an undulating roof, inclined facade and the use of advanced technology, it represents a significant endeavour in the quest to out-class the already high-tech projections at other terminals under development in the region.

The MTB project incorporates two key stages: the construction phase followed by the Operational Readiness Assessment phase (ORAT) where, during a nine-month period, thorough tests of all aspects of the terminal will take place to ensure operational and efficiency readiness from the first day of operation.

The 700,000 square metre terminal building will play a key strategic role. It will initially handle 30 million passengers per year and it is set to become the future home of national airline Etihad Airways.

More recently, TAV Construction placed a bid for the design and construction tender of Terminal 5 at King Khaled International airport (KKIA) in Riyadh, Saudi Arabia. “KKIA in Riyadh is currently undergoing a major structural transition, to develop and modernise its infrastructure up to international standards and to improve its customer service levels across all business lines,” Kazak observes.

In this respect, he points out that Terminal 5 at KKIA will aim to replace the capacity of the existing Terminal 3 and cover traffic growth over the next five years. “The scope of the work will comprise the new terminal building with an adjacent apron, along with a multi-storey car park and ancillary facilities,” he says.

Smaller gateways look to expand

To mark the growing opportunities presented by airport development work in growing markets, airport leaders and industry experts from across Asia, the Far East, Russia and the CIS, the Middle East, Africa and South America convened in Dubai for the Emerging Airports Conference and Exhibition 2013 in January.

Aside from the more glamorous projects well known to many, significant attention was drawn to the development of smaller but increasingly key strategic airports such as Erbil International (EIA) in Kurdistan, Iraq.  An international jury at the Emerging Markets Airport Show voted Erbil International as the best gateway amongst emerging market airports that handle less than five million passengers per annum across Africa, the Middle East and Asia.

Services from Erbil now connect to 15 different countries and 23 cities, with 21 airlines currently flying in and out of the airport, attracted by the business opportunities presented by the country’s large oil reserves. During a presentation, EIA’s director general, Talar Faiq, indicated that a radar project was now complete and that air traffic services are also subject to a major investment programme.

Not to be outshone, many other less well-known airports around the world are not sitting on their laurels. Brunei International airport, for instance, is undergoing a significant upgrade. The project, scheduled for completion in November 2014, is expected to double the facility’s handling capacity from the current 1.5 million passengers a year to 3 million passengers annually by 2014.

This current modernisation will see major improvements include an additional 50 per cent floor space, various new environmentally friendly features and the installation of a much-improved security and baggage handling system and access control. The number of check-in counters will increase from 19 to 40, while the number of immigration counters in the arrival hall will rise from 14 to 26, and in the departure hall the number of counters will rise from eight to 26. A new car park will be built which will be able to accommodate 600 cars, of which about 100 will be sheltered.

The passenger terminal at the airport, which has seen heavy growth in the number of users in recent years, has already been upgraded twice before.

Ongoing development

In the Far East, airside upgrade work continues at Taiwan’s Taoyuan International airport. The project entails pavement rehabilitation and extension of the existing runways and taxiways, plus upgrading of the airfield lighting system, Category III landing system (ILS) and an airport staff training programme. The main challenge of this project, according to Dutch airport consultancy and engineering firm NACO, which is overseeing the project, is to manage runway safety and availability while minimising the project’s duration.

The runways and taxiways at Taoyuan will grow by 2014 to accommodate larger aircraft including the A380. Navigation facilities are also being upgraded at the airport in order to reduce the effects of bad weather on airport operations. Runway and navigation aid improvement projects are expected to be completed by May 2014.

Elsewhere, most of the key airports across Africa have seen a steep rise in passenger numbers and significant upgrade projects are being undertaken throughout the continent. Political interference, in some cases, continues to hamper progress, however.

Plans to modernise Jomo Kenyatta International Airport (JKIA) in Nairobi have so far only led to several postponements. Upgrade work that began in mid-2012 was halted in December last year, although work is scheduled to recommence in June this year. The $141 million airport infrastructure project has fallen way behind schedule as competition intensifies with neighbouring Bole International airport in Addis Ababa, which is also being redeveloped.

In another example of political meddling, the Zambian airports regeneration project that aims to tackle the dilapidated terminal buildings across the country’s airport network has got nowhere. In 2010, ambitious plans were set in motion to develop a sophisticated airport system in Zambia, replacing the outdated colonial infrastructure at the country’s four principal airports, including the nation’s main gateway in the capital Lusaka. After a much-hyped media event to highlight the plans, a government reshuffle took place and the multi-million dollar project’s future hangs in the balance.

Latin American opportunities

Arguably, the most interesting airport infrastructure developments in the next few years will be seen in South America, in particular Brazil, as it prepares to host both the FIFA Soccer World Cup and the 2016 Olympic Games. Brazil is privatising airport infrastructure and opening up markets before the 2014 world cup. Airports are already being expanded and it seems likely that ground handling activities will also be opened up to more competition.

Umit Kazak from TAV Construction is well aware of the tremendous growth in airport construction projects in South America and Brazil. “Our sister Company TAV Airports Holding closely follows up on the projects in the region and TAV Construction will consider this market in the future in line with its expansion strategy,” he concludes.

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