Major Airport Projects in Africa

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Major Airport Projects in Africa STATE OF THE MARKET: MAJOR AIRPORT PROJECTS IN AFRICA Copyright © 2016 IQPC Middle East. All rights reserved. WWW.MODERNAIRPORTSAFRICA.COM STATE OF THE MARKET: MAJOR AIRPORT PROJECTS IN AFRICA 1 Produced by IQPC Middle East in association with the Modern Airports Africa taking place in January 2017 in Nairobi, Kenya Due to its rapidly expanding Key African airport population of over one billion people, expansion and supported economically by greater technological integration and a modernisation projects growing middle class, Africa’s air by country travel market is poised to take off in a dramatic fashion. The International Kenya Air Transport Association (IATA) predicts that passenger numbers in Embu International Airport Africa will grow by 4.7% per year to Upgrade reach 294 million by 2034, almost tripling from the 107 million mark Estimated total investment value: recorded in 2015.1 $96-100 million However, despite these solid growth Estimated project completion prospects, the African aviation date: Late 2017 industry still needs to contend with significant and ongoing issues Key investors/contractors/ which are hampering its long-term consultants: TBA future. IATA also predicts that in Key works/technologies/ 2016, African carriers will collectively solutions required: Complete record a net loss of $500 million, terminal building and supporting with relatively few carriers posting infrastructural development to healthy profits. Admittedly, overall international standards performance is improving compared to the $600 million in losses recorded Project Overview: The small for 2015, but the difficulties facing the existing airstrip at Embu, 120 km industry remain severe.2 The spectre northeast of the capital Nairobi, will of old, outdated and cramped airport be developed into Kenya’s seventh infrastructure is a major factor, as the international airport. Key investors majority of facilities are in need of are yet to be announced but Embu expansion, rehabilitation or complete Governor Martin Wambora recently overhaul works in order to boost their announced that a large group of passenger processing capacity and foreign investors has expressed overall efficiency. interest in the project and the Kenyan national government is also engaged Fortunately, more African airport in talks.3 operators are actively collaborating with government ministries as The upgrade and expansion project well as domestic and international calls for the construction of facilities investment groups to address this that will transform the airstrip into an very issue and develop airport airport conforming with international infrastructure that is capable of standards; including terminal unlocking Africa’s full aviation buildings, warehouses, hangars, potential. With billions of dollars aprons, a free trade zone and the already invested in dozens of major airport expansion and rehabilitation works across the continent, air travel in Africa is predicted to experience 1 Financial Times, East Africa bets on air travel expansion, 07/07/2016 a massive surge which will fuel a 2 Ibid lasting improvement in the industry’s 3 Construction View Online, Plans underway to construct multi-million dollar airport in Kenya, fortunes. 23/08/2016 WWW.MODERNAIRPORTSAFRICA.COM STATE OF THE MARKET: MAJOR AIRPORT PROJECTS IN AFRICA 2 extension of the runway from 1.5km sites around the capital Addis to 4km.4 Ababa for a second international airport, one which is planned to Malindi Airport Expansion be larger than London Heathrow and serve as many as 120 million Estimated total investment value: passengers each year. Ultimately, the $552 million government ministries involved in the Estimated project completion project’s planning phase hope that date: December 2017 the construction of the new airport will enable Ethiopian Airlines – the Key investors/contractors/ country’s most profitable airline – to consultants: Kenya Airports significantly consolidate its regional Authority (KAA) market share and comprehensively overtake Nairobi as East Africa’s Key works/technologies/ premier aviation hub.6 solutions required: Modern terminal building development, “It’s not only a runway and terminal runway and apron expansion that we are going to build. The airport city will make Ethiopia a hub for the Project Overview: Malindi’s much- whole region,” said Tewodros Dawit, discussed expansion project is being CEO, Ethiopian Airports Enterprise sped up by the Kenyan Government in a recent interview, comparing the since the region relies heavily on prospective development to airports tourism and the current airstrip can in Dubai and London. The resultant only accommodate smaller aircraft. airport zone will include hotels, Upon completion, the new runway – shopping malls, office buildings and extended from 1.4km to 2.5km – will room for the development of new be able to schedule flights involving housing areas too.7 bigger aircraft such as Boeing 737- 600 series with a capacity of Bole International Airport 150 passengers. This is expected Expansion to increase the airport’s annual passenger capacity from 150,000 in Estimated total investment value: 2015 to 400,000 by 2020.5 $350 million “It’s not only a Ethiopia Estimated project completion runway and terminal date: Late 2018 New Addis Ababa that we are going to International Airport Key investors/contractors/ build. The airport city consultants: China Estimated total investment value: Communications Construction will make Ethiopia $4 billion Company (CCCC), Export Import a hub for the whole Bank of China (EXIM), CPG Estimated project completion Corporation Pte Ltd region,” date: 2024 Tewodros Dawit, CEO, Key works/technologies/ Ethiopian Airports Enterprise Key investors/contractors/ solutions required: Terminal consultants: ADPI extension and modernisation Key works/technologies/ Project Overview: Even as solutions required: Complete plans for the new Addis Ababa development of new airport and supporting infrastructure including 4 Business Daily Africa, Embu Airstrip upgrade set to cost Sh10bn, says governor Wambora, 18/08/2016 four international standard runways 5 Daily Nation, Sh5.6b Malindi airport expansion to begin next financial year, 06/09/2016 Project Overview: As Ethiopia’s 6 Mail and Guardian Africa, It already ‘out-flies’ the rest, now Ethiopia plans Africa’s biggest airport, infrastructure boom continues, amidst concerns of funding squeeze, 04/11/2015 its government is currently eying 7 AIN Online, Ethiopia Prepares to Build Major Hub Airport for Africa, 13/10/2015 WWW.MODERNAIRPORTSAFRICA.COM STATE OF THE MARKET: MAJOR AIRPORT PROJECTS IN AFRICA 3 International Airport mega project Estimated project completion are being discussed, the existing date: TBA Bole International Airport expansion project is approximately 70% Key contractors/consultants: TBA 8 complete. The key developments Key works/technologies/ being undertaken by CCCC solutions required: Complete involve a significant extension construction of international and modernisation of the existing standards airport plus support domestic and international terminals, infrastructure both of which will have new boarding gates, boarding bridges installed, Project Overview: As Tanzania’s along with a VIP passenger area and Prime Minister Kassim Majaliwa a new car park.9 relocated to the new capital Dodoma in early September 2016, Once complete, the expansion works the importance of the region will nearly triple the airport’s annual continues to grow both politically and capacity from 7 million to 20 million economically.12 That being said, the passengers.10 ambitious plans for the construction Ethiopian Airports of a new Msalato international airport remain on hold as the government Enterprise (EAE) medium is relying on the commitment of airport expansions foreign investment for the project.13 Feasibility studies have already been Estimated total investment value: completed and solicitation of funds $103 million is currently ongoing to kickstart the Estimated project completion construction phase of the project. date: 5 projects currently underway, completion between 2017-2019 Tabora Airport Expansion and Rehabilitation Key investors/contractors/ consultants: EAE Estimated total investment value: $5-8 million Key works/technologies/ solutions required: Terminal Estimated project completion expansion and modernisation date: TBA including modern security and Key investors/contractors/ baggage handling solutions consultants: European Investment Project Overview: EAE are Bank, Government of Tanzania, TAA expanding and upgrading the Key works/technologies/ infrastructure of airports in five solutions required: Construction regional states: Jinka, Hawassa, of pavements; runway (1800m Robe, Shire, and Semera.11 The x 30m) to bitumen standard. widespread development and Construction of storm water drainage modernisation of medium-sized system. Runway stripping works regional airports of this nature (strengthening and grassing).14 across Ethiopia demonstrates the significance of the country’s improving domestic and international 8 All Africa, Ethiopia: Enterprise Expanding Air Transport Facilities, 18/08/2016 air travel prospects, as well as its 9 Construction Review Online, Ethiopia’s Bole growing commitment to supporting International Airport expansion project now to cost infrastructural investment projects. US$ 340m, 19/05/2015 10 AIN Online, Ethiopia Prepares to Build Major Hub Airport for Africa, 13/10/2015 Tanzania 11 ENA, Over 2.3 Billion Birr Construction, Expansion of Airport
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