The Arab Republic of Egypt Egyptian Holding Company for Airports and Air Navigation (EHCAAN) Egyptian Airports Company (EAC) The Arab Republic of Egypt Special Assistance for Project Implementation (SAPI) for Borg El Arab International Airport Modernization Project Final Report February 2012 Japan International Cooperation Agency (JICA) Japan Airport Consultants, Inc. Narita International Airport Corporation (NAA) Joint Venture Special Assistance for Project Implementation (SAPI) Borg El Arab International Airport Modernization Project Table of Contents – Final Report - Table of Contents Table of Contents List of Tabulations List of Illustrations List of Abbreviations Chapter 1 Introduction 1.1 Preface .................................................................................................................... 1-1 1.2 Outline of the Study ............................................................................................... 1-2 1.2.1 Objective of the Study ................................................................................... 1-2 1.2.2 Area of the Study ........................................................................................... 1-2 1.2.3 Scope of Study .............................................................................................. 1-3 1.3 Work Procedure of the Study................................................................................ 1-4 1.3.1 Study Organization ........................................................................................ 1-4 1.3.2 Work Flowchart ............................................................................................. 1-5 1.3.3 Work Schedule .............................................................................................. 1-6 Table of Contents - 1 Special Assistance for Project Implementation (SAPI) Borg El Arab International Airport Modernization Project Table of Contents – Final Report - Chapter 2 Background of the Project 2.1 History of the Project ............................................................................................ 2-1 2.1.1 Necessity of the Project................................................................................. 2-1 2.1.2 SAPROF Study in 2004 ................................................................................ 2-3 2.1.3 Design and Completion of the Project .......................................................... 2-3 2.2 Socio-Economic Situation in Egypt ...................................................................... 2-6 2.2.1 General .......................................................................................................... 2-6 2.2.2 National Economy ........................................................................................ 2-7 2.2.3 Population ..................................................................................................... 2-9 2.2.4 Employment ................................................................................................ 2-12 2.2.5 Housing ....................................................................................................... 2-14 2.2.6 Industry and Trade ...................................................................................... 2-15 2.2.7 Transportation ............................................................................................. 2-17 2.2.8 Tourism ....................................................................................................... 2-23 Chapter 3 Update of Surrounding Conditions for the Project 3.1 Outline of Civil Aviation Sector in Egypt ............................................................ 3-1 3.1.1 General .......................................................................................................... 3-1 3.1.2 Air Transportation Statistics for whole Egypt ............................................... 3-1 3.1.3 Government Sector and Airport Operators ................................................... 3-4 3.1.4 Organization of Egyptian Airports Company (EAC) .................................... 3-5 3.1.5 Airports in Egypt ........................................................................................... 3-6 3.2 Current Situation of Civil Aviation Sector ........................................................ 3-12 3.2.1 Airports in Alexandria Region .................................................................... 3-12 3.2.2 Other Airports in Egypt ............................................................................... 3-19 3.2.3 Airlines in Egypt ......................................................................................... 3-27 3.2.4 Recent Trend of LCC services .................................................................... 3-28 3.2.5 Challenges of Civil Aviation Sector in Egypt for the Future ...................... 3-33 Table of Contents - 2 Special Assistance for Project Implementation (SAPI) Borg El Arab International Airport Modernization Project Table of Contents – Final Report - 3.3 Development Projects of Civil Aviation Sector in Egypt .................................. 3-35 3.3.1 Airports in Alexandria Region .................................................................... 3-35 3.3.2 Cairo International Airport .......................................................................... 3-38 3.3.3 Major EAC Airports .................................................................................... 3-40 3.4 Tourism Industry in Alexandria Region ............................................................ 3-42 3.4.1 Accommodations ......................................................................................... 3-42 3.4.2 Tourism Attractions ..................................................................................... 3-43 3.4.3 Current Development Projects for Tourism ................................................ 3-44 3.5 Infrastructure in Alexandria Region .................................................................. 3-46 3.5.1 Current Situation of Infrastructure .............................................................. 3-46 3.5.2 Air Traffic Developments ............................................................................ 3-47 3.5.3 Road Infrastructure Developments ............................................................. 3-48 3.5.4 Railway Developments ............................................................................... 3-49 3.5.5 Water Transport Developments ................................................................... 3-52 3.5.6 Sea port Developments ............................................................................... 3-53 3.6 Industrial Developments in Alexandria Region ................................................ 3-55 3.6.1 Current Situation of Industry and Trade in Alexandria Region .................. 3-55 3.6.2 Industrial Development Plans at Borg El Arab ........................................... 3-55 3.6.3 New Borg El Arab Industrial Park .............................................................. 3-61 3.6.4 Free Trade Zone in Alexandria Region ....................................................... 3-61 3.6.5 Other Major Industrial Developments in the Catchment Area of the Airport ................ 3-62 3.7 Egypt-Japan University of Science and Technology (E-JUST) ........................ 3-69 3.7.1 General ........................................................................................................ 3-69 3.7.2 Footsteps of E-JUST Project ....................................................................... 3-70 3.7.3 Current Situation of E-JUST ....................................................................... 3-70 3.7.4 On-going Developments and Future Plans ................................................. 3-73 3.7.5 Social and Economic Impact from E-JUST Project .................................... 3-74 Table of Contents - 3 Special Assistance for Project Implementation (SAPI) Borg El Arab International Airport Modernization Project Table of Contents – Final Report - Chapter 4 Air Traffic Demand Forecast 4.1 Review of SAPROF Study ..................................................................................... 4-1 4.1.1 Procedure of Air Traffic Demand Forecast applied in SAPROF .................. 4-1 4.1.2 Comparison between the Forecast in SAPROF Study with the actual Traffic .................. 4-2 4.1.3 Comparative Analysis between SAPROF and Present ................................. 4-4 4.1.4 Principal Conclusion ..................................................................................... 4-7 4.2 Forecasting Parameters ......................................................................................... 4-8 4.2.1 Air Traffic in Egypt ....................................................................................... 4-8 4.2.2 Origin & Destination / Nationality of Air Passenger .................................. 4-13 4.2.3 Trend of Scheduled Flights in Alexandria ................................................... 4-16 4.2.4 Passenger Survey at Borg El Arab International Airport ............................ 4-20 4.2.5 Socio-Economic Indices ............................................................................. 4-29 4.3 Annual Passenger Demand Forecast .................................................................. 4-31 4.3.1 Procedure of Air Traffic Demand Forecast ................................................. 4-31 4.3.2 Top-down Analysis.....................................................................................