Business Case Study – Hardisty Aerodrome Expansion
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Business Case Study – Hardisty Aerodrome Expansion Phase 1: Market and Demand Assessment Introduction to LPS AVIA • Founded 1991 (22 years ago) • Consulting Engineering: – Planning, Design, Construction Supervision – Project Management for Airports + Aviation • Management Consulting – Airports, Aviation, Air Navigation • 367 Projects – 130 Northern and Remote • 20+ Staff & Associates • Ted Lennox P.Eng. – 39 years’ experience – APEGGA member for 25 years 12 Years @ One Antares Dr. • Bruce Jonasson – 30 years’ remote project experience aviation planning + 2 management consulting | for today's transport industry Business Profile • 25 active projects (1/2013) • 80% sole-sourced to LPS • Clients: • Aviation Industry • Airlines • Energy Sector • Mining Sector • Governments • Institutions • 10 Airport Authorities • 25 Cities and Towns aviation planning + 3 management consulting | for today's transport industry Aviation Industry aviation planning + management consulting | for today's transport industry 4 Airlines aviation planning + management consulting | for today's transport industry 5 Energy aviation planning + management consulting | for today's transport industry 6 Mining aviation planning + management consulting | for today's transport industry 7 Government aviation planning + management consulting | for today's transport industry 8 Project Locations 2012 San Jose Houston Detroit (Metro) Washington (Dulles) aviation planning + management consulting | for today's transport industry 9 Western Canada Experience ALBERTA AIRPORTS BRITISH COLUMBIA 1. Calgary International 1. Liard North (NEXEN) 2. Calgary Springbank 2. Bob Quin Lake KSM (Nova Gold) 3. Edmonton International 3. Stikeen River (Seabridge) 4. Edmonton Villeneuve 4. Revelstoke Mountain Resort 5. Edmonton Cooking Lake 5. Quesnel 6. Edmonton City Centre 6. Vancouver International 7. Ft. McMurray YUKON / NORTHWEST TERRITORIES 8. Ft. McKay Horizon (CNRL) 1. Whitehorse 9. Ft. McKay Firebag (Suncor) 2. Yellowknife 10. Ft. McKay Albion (Shell) 3. Hay River 11. Leismer (Statoil) 4. Ft. Simpson 12. Kirby Lake (Devon) 5. Inuvik 13. Bonnyville / Cold Lake SASKATCHEWAN 14. Hardisty 1. Prince Albert 15. Lethbridge 2. Swift Current 16. Wetaskiwin 3. Saskatchewan Air Services Strategy 17. Camrose 4. Saskatchewan Northern Air Operations 18. Westlock aviation planning + management consulting | for today's transport industry 10 Hardisty Introduction • Town and local industries have identified a potential need to expand Hardisty Aerodrome • Expansion of energy sector has led to expansion of storage, terminal, and transmission facilities • Hardisty, Flagstaff County and MD of Provost occupy a strategic position supporting energy transportation • Hardisty Aerodrome operated by Town, benefits 3 municipal entities April 17, 2013 aviation planning + management consulting | for today's transport industry 11 Approach • Market and Demand Assessment Study first step – Is it worthwhile preparing full Business Case for Expansion? • Specialists inspected aerodrome • 16 Consultations – 10 energy sector – 1 aviation business – Town, County, MD – RCMP, Alta Health, Alta Emerg. Mgt. Agency • Considered aerodrome use by industry, commercial, government interests April 17, 2013 aviation planning + management consulting | for today's transport industry 12 Market Identification Demand identified for upgraded airport for: 1. access to air transportation for local industrial activity 2. air access for emergency response and security services 3. emergency response training center for the energy sector 4. pipeline patrol operations 5. aircraft maintenance and support services 6. attracting tourism 7. recreational flying activities April 17, 2013 aviation planning + management consulting | for today's transport industry 13 Neighboring Airports 25 Km 50 Km April 17, 2013 aviation planning + management consulting | for today's transport industry 14 Neighboring Airports Hardisty Killam-Sedgewick Forestburg Provost Wainwright Airport Specifications Runway Length 3,000’ (914m) 2,950’ (899m) 2,950’ (899m) 5,202’ (1,586m) 3,000’ (914m) Threshold End - Threshold End - Threshold End - Threshold End - Threshold End - Lighting Medium Intensity Medium Intensity Medium Intensity Medium Intensity Medium Intensity Navigational Aids No No NDB No VOR/DME Aviation Fuel No (Private) 100LL No 100LL 100LL Registered Registered Registered Registered Registered Classification Aerodrome Aerodrome Aerodrome Aerodrome Aerodrome Road Distance and Travel Time (from Airport) Edmonton 209 km / 2:27 171 km / 2:03 178 km / 2:10 293 km / 3:18 210 km / 2:26 Hardisty Tank 9 km / 0:11 41 km / 0:27 67 km / 0:53 83 km / 0:54 73 km / 0:57 Complex April 17, 2013 aviation planning + management consulting | for today's transport industry 15 Strategic Assessment Strengths Weaknesses • Proximity to Complex • Runway length • Relationship with Complex • Airfield lighting unserviceable Partners • No aviation fuel • Well situated on high ground • Terminal building poor • Land for runway extension • No tenants or businesses • Developable land available • No facilities for maintenance • Distance from Edmonton April 17, 2013 aviation planning + management consulting | for today's transport industry 16 Strategic Assessment April 17, 2013 aviation planning + management consulting | for today's transport industry 17 Strategic Assessment Opportunities Threats • Terminal Complex expanding • Other area aerodromes are • Need for industry air access equally or more capable • Improved Emergency Response • Flagstaff County ambitions – Now about 4 hrs by road (Red Deer) for Killan-Sedgewick • Increased threat environment Aerodrome – Unrealistic • Emergency Response Centre – Lack of industry and population • Training facility for industry skills • MRO interest - Closure of Edmonton City Centre Airport April 17, 2013 aviation planning + management consulting | for today's transport industry 18 Typical Industry Aircraft Demand Beechcraft 1900D Hawker 400XP Cessna Citation XLS+ DHC8-100 Beech King Air 200 Pilatus PC-12 April 17, 2013 aviation planning + management consulting | for today's transport industry 19 Design Aircraft Candidates - Hardisty Corrected Aerodrome Max Aircraft Typical Passenger/Cargo Aircraft Takeoff Reference Pavement Configuration Distance* Code Load Rating Corporate Prop. / Air Taxi Part 703 Current Piper Navajo 2,668’ 2A 1.0 7 pax King Air 200 2,888’ 2B 2.4 8 pax Corporate Jet / Commuter Part 704 Pilatus PC-12 3,625’ 2B 2.0 8 pax Citation XLS+ 4,870’ 3B 5.6 8 pax Beech 1900D 5,216’ 3B 2.9 19 pax Hawker 400XP 5,344’ 3A 3.6 8 pax Future Emergency Response / Air Transport Category Part 705 Dash 8 – 100/300 4,500’ 3C 4.8 39 / 50 pax CL 215 / CL 415 3,762’ 2C 5.7 Aerial attack fire suppression CV 580 5,335’ 3C 5.5 Aerial attack fire suppression L 100 Hercules 4,800’* 3D 8.8 Fire equipment airlift April 17, 2013 aviation planning + management consulting | for today's transport industry 20 Industrial Emergency Response • Terminal Complex protection of strategic significance for economies of – North American, – Canada – Alberta • Emergency Response Centre – Equipment and Materiel Selkirk Industrial Fire Response – CL 215 • Emergency Response Training • Fire Response – Air Attack from aerodrome April 17, 2013 aviation planning + management consulting | for today's transport industry 21 Industrial Emergency Response • Hardisty outside wildfire protection zones for Alberta and Saskatchewan • Located too far from aerial attack bases for heavy sustained response • Hardisty Aerodrome runway should be at least 5,000’ long for emergency use including air attack April 17, 2013 aviation planning + management consulting | for today's transport industry 22 Industrial Emergency Response Air Tractor 802F CL 215 CL 415 / 215T Convair 580 L188 Electra L100-30 Hercules April 17, 2013 aviation planning + management consulting | for today's transport industry 23 Demand – Future Airport Role Provide Access to: 1. air transportation for industrial activity; 2. emergency response and security services; 3. regional tourism. April 17, 2013 aviation planning + management consulting | for today's transport industry 24 Demand – Future Airport Role Provide a Base for: 1. emergency response centre and training; 2. aerial attack in support of an industrial fire; 3. pipeline patrol operations; 4. corporate aircraft owners and operators; 5. aircraft maintenance and support services; 6. private and recreational flying activities. April 17, 2013 aviation planning + management consulting | for today's transport industry 25 Aerodrome Infrastructure Requirements - Prelim. • Runway, Taxiway, Apron Expansion • Runway and Approach Lighting • Passenger Terminal, Access Roads and Parking • Airport Operations and Maintenance Garage • Field Electric Centre • Utilities and Services • Aviation Fuel Storage/Services April 17, 2013 aviation planning + management consulting | for today's transport industry 26 Aerodrome Development Land - Preliminary • Emergency Response and Training Centre (hangars, warehouses and other facilities); • Fire Base (apron, bulk storage, replenishment equipment) • Operations and maintenance base for specialty operations (i.e. pipeline patrol); • Aircraft Maintenance Repair Overhaul (MRO) facility April 17, 2013 aviation planning + management consulting | for today's transport industry 27 Next Steps Phase 2 Phase 3 Airport Development Plan Business Case Assessment • Inventory of operational and • Evaluate business segments technical facilities • Confirm facility improvements • Confirm operational • Estimate economic impacts in requirements relation to costs • Identify facility deficiencies • Estimate economic benefits to • Preparation of a the region development program • Internal Rate of Return (IRR) • Order-of-magnitude cost or Return on Investment (ROI) estimates April 17, 2013 aviation planning + management consulting | for today's transport industry 28 Questions Ted Lennox, President LPS AVIA Consulting Tel: (613) 226-6050 [email protected] April 17, 2013 aviation planning + management consulting | for today's transport industry 29 .