Airport Opportunity
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Airport Opportunity GVK’s Ambitions Globally R. K. Jain – CEO, Mumbai International Airport Pvt Limited London - December 8, 2011 Overview ENERGY TRANSPORTATION AIRPORTS RESOURCES POWER ROADS PORTS AIRPORTS COAL OIL & GAS EXPLORATION 5106 MW of Power 600 Kms of BOT Roads India’s largest private 7 Deepwater oil & gas airport operator Eight Power Projects – India’s first 6 lane BOT blocks Gas, Hydro & Thermal expressway (Jaipur – Chhatrapati Shivaji Coal mining - 120 Million Kishangarh: 90 kms) International Airport – 30 MT f Operational - 909 MW million passengers a year Developing the Deoli Kota f Development - 4197 Expressway (83 kms) Bengaluru International Airport – 11 million MW 6 laning of the Bagodara- passengers a year Vasad Project (102 kms) RoFR at Navi Mumbai 4 laning of Shivpuri Dewas Road Project (330 kms) Developing 2 greenfield airports in Bali and Java Integrated greenfield port at Okhamandi, Gujarat Master concession Bali AIRPORTS Largest Private Airport Operator in India Current Airports: Chhatrapati Shivaji International Airport, Mumbai, India (MIAL) Bengaluru International Airport, India (BIAL) In pipeline: New North Bali Greenfield Airport, Indonesia Yogyakarta Greenfield Airport, Indonesia Future Opportunities: Navi Mumbai International Airport, India – Right of First Refusal (RoFR) Goa International Airport, India 4 GVK Airport Developers Pvt. Ltd. (“GVK ADPL”) GVK PIL 100%* GVK Airport Developers Pvt. Ltd (“GVK ADPL”) 100%* 100% Bangalore Airport & GVK Airport Holdings Infrastructure Pvt. Ltd. (“GAHPL”) Developers Pvt. Ltd. 50.5% 43% Bengaluru Mumbai International International Airport Airport Limited Limited * Effective stake 5 GVK Airport Business Shareholding MIAL BIAL Name Share Name Share GVK 50.5% GVK 43% Bid Services Division Siemens 26% (Mauritius) Limited 13.5% (BSDM) Unique 5% Airports Company South 10% Africa (ACSA) Airports Authority of India 13% Karnataka State Industrial Airports Authority of India 26% and Infrastructure 13% Development Corporation 6 GVK Airport Business Investment Name Amount (USD Million) Additional 13.5% stake from BSDM in MIAL 231 12% stake from Zurich Airport in BIAL 97 17% stake from Larsen & Toubro in BIAL 137 14% stake from Siemens Project Ventures GmbH in BIAL 123 TOTAL 588 7 Chhatrapati Shivaji International Airport, Mumbai Chhatrapati Shivaji International Airport (CSIA) MIAL – a GVK led consortium took over the operations, management and development of CSIA, Mumbai on 3rd May 2006. In October 2011, GVK bought an additional 13.5% from Bid Service Division (Mauritius) for USD 231 Million, taking its total stake in the consortium to 50.5%. Currently, new integrated Terminal 2 development in progress International Operations at the Integrated Terminal scheduled to commence from last quarter of 2013 and Domestic Operations from last quarter of 2014 Targeted annual capacity of 40 Million passengers and 1 Million tonnes of cargo 20 Million sq ft of integrated mix use real estate development Project cost USD 2.5 Billion Chhatrapati Shivaji International Airport (CSIA) Passengers (Mn) Cargo (‘000 Tonnes) CAGR: 10.8% CAGR: 8.9% 670.2 29.1 582.6 25.9 25.6 533.6 529.8 22.2 23.4 480.2 431.3 18.4 402.7 15.7 FY'05 FY'06 FY'07 FY'08 FY'09 FY'10 FY'11 FY '05 FY '06 FY '07 FY '08 FY '09 FY '10 FY '11 The existing airport in Mumbai- CSIA, handled 29.1 Million passengers in 2010-11, representing 20% of air traffic in India. CSIA accounted for 29% of cargo traffic of India. With 670 ATMs per day, CSIA is one of the busiest airports of India. 10 New Integrated Terminal – T2 at CSIA The upcoming Integrated Terminal 2, at CSIA, Mumbai is acknowledged to be one of the most iconic developments in the recent times. International operations at the new terminal will commence from end of 2013 and domestic operations will commence from end of 2014. Some of the key features of T2 include: • Total area of 453,500 sq.mts. • 40 million passengers per annum capacity • Over 21,000 sq.mts. of retail including 4,700 sq.mts. of F&B area • 188 check-in counters • 60 departure and 76 arrival immigration counters • 104 Security check positions • 25 contact gates and 52 passenger boarding bridges – 2 contact gates are A-380 compliant • 41 Travelators , 47 Escalators and 73 Elevators • 6 lane dedicated elevated express way leading to the Terminal • Multi-level car park for 5,000 cars 11 New Integrated Terminal – T2 at CSIA 12 Mumbai – Traffic Demand vis-à-vis CSIA Capacity Million Passengers Per Annum 80 70 Shortfall from Demand can only 60 2015 onwards be met by 50 Current Traffic a new 29 MPPA Airport 40 30 20 CSIA Capacity 10 40 MPPA 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 UnConstrained Demand Forecast CSIA is growing at the rate of 10% per annum and is expected to reach full capacity (40 MPPA) by 2015 under unconstrained growth scenario. Due to constraints at CSIA, a land locked airport ruling out any further expansion, it is imperative to develop a second airport for Mumbai. State Support Agreement has provided Mumbai International Airport Pvt. Ltd. (MIAL) - the operator of CSIA – the Right-of-First-Refusal (RoFR) for developing the second airport, subject to MIAL participating in the bidding process and being within 10% of the highest bidder for the second airport and offering to match the highest bid. GVK Sky City Integral part of the modernization of the Mumbai airport First large scale integrated master plan development project in Mumbai City side development – 20 million sq ft across different zones Comprises of hotels, convention center, commercial offices, retail, hospitals Bengaluru International Airport Bengaluru International Airport Commercial operations commenced in May 2008 GVKPIL bought 12% stake from Zurich Airport in November 2009 and 17% stake from Larsen & Toubro in December 2009. Both the deals were priced at INR 105 (~USD 2.1) per share Further, in August 2011, GVKPIL raised its stake in BIAL to 43% by exercising RoFR and acquiring a 14% holding from Siemens Project Ventures GmbH at INR 114 (~USD 2.3) per share Expansion of Terminal 1 to increase capacity to 20 Million by end 2012 Commercial real estate development – 60 Million sq ft. BIAL - Fastest Growing Airport in India In addition to the ongoing Terminal 1 expansion, a new terminal 2 is planned, with two new parallel runways Terminal 1 Expansion Existing Facilities Terminal Expansion and Proposed East Pier Proposed Apron Expansion Terminal 1 Expansion Sr. Description Existing Proposed Total No 8 Code C / 4 15 Code C /7 Code E + 1 Code 1Boarding Gates Code E F (Including Proposed East Pier) 2 Check In Counters 53 Nos 83 Nos 3 VVIP Lounge 275 sq. mtr 600 sq. mtr 4 Floor Area 72,000 sq. mtr 134,000 sq. mtr 5 Baggage Reclaim Belts 9 Nos 13 Nos Domestic Departure Lounge 6 1200 Nos 2800 Nos Seating capacity International Departure Lounge 7 700 Nos 1900 Nos Seating capacity East Pier Views Airport Development in Indonesia Airport Development in Indonesia • Exclusive rights to develop two greenfield airports in Indonesia SINGAPORE • New North Bali airport to cater for the additional traffic from the capacity constrained current Denpasar airport (DPS) in Bali. Feasibility and Master Planning under way JAKARTA • New Yogyakarta airport to BALI relocate the present commercial airport shared with military. Feasibility and Master Planning YOGYAKARTA under way 22 Bali - Indicative Allocation Results Bali Air Traffic Allocation Medium Forecast 60 50 Passengers destined for North Bali Served at New North Bali Airport 40 North Bali Traffic approx. 35-40 MPPA Passengers Air Millions 30 Bali Total Traffic Spill from DPS to New North Bali Airport 20 10 Denpasar Airport Capacity: 18 MPPA 0 Project Location - Yogyakarta Kulon Progo DISTANCE FROM YOGYAKARTA TO NEW AIRPORT SITE (KULON PROGO) - 35 Kms DISTANCE FROM YOGYAKARTA TO SURAKARTA (SOLO) - 60 Kms DISTANCE FROM YOGYAKARTA TO SEMARANG - 110 Kms Navi Mumbai International Airport (NMIA) Project About NMIA The Navi Mumbai International Airport is proposed to be developed through Public Private Partnership (PPP). A Steering Committee consisting of officials from Ministry of Civil Aviation (MoCA), Airports Authority of India (AAI), Government of Maharashtra, CIDCO and headed by Secretary - MoCA, monitors the progress of the project. A Special Purpose Vehicle (SPV) will be set up with CIDCO, AAI and private developers as shareholders. Proposed equity pattern is: CIDCO – 13% AAI – 13% Private Developers – 74% MIAL has a RoFR in the proposed project. 26 Goa International Airport Goa International Airport Government has given approval to a second airport in North Goa to be developed through a PPP model. The new airport will come up in Mopa (about 40 kms from the existing airport). The proposed airport has an area of 2200 acres, out of which about 900 acres is yet be acquired. Traffic Projections: o 2015: 0.7 MPPA o 2025: 5.4 MPPA o 2045: 10.6 MPPA Operational scheme: “Dual Airport System”. The existing airport (at Dabolim) will continue to be operational and the distribution of traffic will be decided by the market. Proposed time lines: o Finalisation of Master plan: Oct 2012 o Release of Tender Documents: Dec 2012 GVKPIL has expressed interest in building the same. 28 Summary of GVK Strengths in Airport Development and Management Planning, Developing & Operating world class infrastructure Success in a constrained airport environment Enhancing revenue and margin via aero and non aero services, innovative business models Strategic airport assets Long term investment partner with Governments 29 Thank You.