presentation to the tourism portfolio committee … · 2018. 11. 9. · warehouses, express and...
TRANSCRIPT
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AIRPORTS COMPANY SOUTH AFRICA 1
PRESENTATION TO THE TOURISM
PORTFOLIO COMMITTEE
November 2018
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AIRPORTS COMPANY SOUTH AFRICA 2
CONTENTS
3 COMPANY OVERVIEW AND HIGHLIGHTS
8
29
42
AIRLIFT KEY PARTNERSHIPS
AIRLIFT STRATEGY SUCESSES
AIRLIFT STRATEGY & INITIATIVES
AIRPORTS INFRASTRUCTURE ISSUES42
42 TARIFFS IMPACT ON TOURISM
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3
COMPANY OVERVIEW & HIGHLIGHTS
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AIRPORTS COMPANY SOUTH AFRICA 4OUR GEOGRAPHIC
FOOTPRINTINDIA
Chhatrapati Shivaji
International Airport in
Mumbai is an equity
investment.
GHANA
The Company performs
technical advisory and
consultancy services at
Kotoka International
Airport in Accra.
BRAZIL
Guarulhos International Airport
in São Paulo is an equity
investment.
SOUTH AFRICA
We operate nine airports and provide technical
advisory and consultancy services for non-
ACSA airports.
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AIRPORTS COMPANY SOUTH AFRICA 5
HIGHLIGHTS
• Board vacancies filled
• The company continued to be resilient despite challenging
operating conditions
• Maintained sound financial performance and satisfactory airport
service levels
• Remained steadfast in the implementation of our governance
framework and operating model
• Seven transformation sector strategies progressing well
• Continued to strengthen Supply Chain Management governance
processes
• Building relationships with our stakeholders is pivotal in creating
sustainable value
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AIRPORTS COMPANY SOUTH AFRICA 6
ECONOMIC IMPACT
WHAT ARE WE DOING TODAY TO ENSURE THE LEGACY OF
TOMORROW?
• This figure comprises of 2 992 direct employees (not including contractors),
around 5 519 jobs as a result of supply chain spending and 6 440 supported
through spending of ACSA employees and suppliers employees
Source: PwC Economic Impact Study commissioned by ACSA 2017
ACSA contributed
R9.5 billion toSA’s economyin FY2017
ACSA supported
14 950SA jobsin FY2017*
ACSA supported
R2.8 billionof incometo workers in SA
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7
AIRLIFT STRATEGY & INITIATIVES
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AIRPORTS COMPANY SOUTH AFRICA 8
• New and existing routes, bynew and existing airlinesDevelop
• Existing routes and airlinesperformance throughregular contact withairlines
Maintain
• Trade and Tourism growththrough increase in flights,improves schedules anddeployment of largeraircrafts to our airports
Promote
KEY OBJECTIVES
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AIRPORTS COMPANY SOUTH AFRICA 9
THE AIRLIFT FRAMEWORK
=
Route
Development
Committee
Structure
Airport
Tourism
Agencies
Local
Municipalities
Economic &
Rural
Development
Agencies
Business
Chamber
Increased Traffic and
more opportunities for
Trade and Tourism
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AIRPORTS COMPANY SOUTH AFRICA 10
THE GOLDEN TRIANGLE
▪ The three main gateways account for over 80% of the total traffic,
with JNB-CPT city pair being amongst the top 10 busiest in the
world
▪ Over 85% of the flights depart and arrives at the below ACSA
airports
O.R Tambo International
Cape Town International
King Shaka International
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11
AIRLIFT KEY PARTNERSHIPS
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AIRPORTS COMPANY SOUTH AFRICA 12
CAPE TOWN AIR ACCESS
Cape Town International
6,0
1
6,3
3
6,7
5
6,8
3
2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8
S E A T S O R I G I N A T I N G F R O M C T I A ( M I L L I O N S )
Key Focus Area
1. Intercontinental2. Regional (SSA)
*Largely seasonal capacity from EU
Hong Kong
Top Opportunities
• New York
• Brussels
• Hamburg
• Sydney
• Stockholm
• Dublin
• Sao Paolo
• Dusseldorf
• Berlin
• Copenhagen
• Lagos
• Dar Es
Salam
• Mauritius
• Lusaka
• Maputo
Singapore
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AIRPORTS COMPANY SOUTH AFRICA 13
Since its inception in July 2015 CTAA has contributed towards:
Landing 13 new routes and 18 route expansions at
Cape Town International Airport (CPT)
Doubling international seat capacity at the airport with
1.5 million seats added
Leading to 16% international terminal passenger growth
in 2016 and 20% growth in 2017
International air cargo has grown by 52% in 2017, Johannesburg
OR Tambo (JNB) grew by 17% and King Shaka (DUR) by 12%.
This has meant and estimated increase in direct tourism
spending of USD 400 million for the local region
CAPE TOWN AIR ACCESS
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AIRPORTS COMPANY SOUTH AFRICA 14
King Shaka International
Top Opportunities
• Mumbai
• Harare
• Lusaka
• Nairobi
• Upington
• Polokwane
• Mthatha
• Plettenberg
Bay
3,0
8 3,5
9
3,6
6
3,7
8
2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8
S E A T S O R I G I N A T I N G F R O M K S I A ( M I L L I O N S )
*Driven by Domestic; recent UK link
Key Focus Area
1. Intercontinental2. Regional (SSA)3. Domestic
DURBAN DIRECT
King Shaka International
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AIRPORTS COMPANY SOUTH AFRICA 15
GAUTENG AIR ACCESS
O.R Tambo International
Key Focus Areas
1. Intercontinental
2. Regional (SSA)
3. Domestic
14
,13
14
,51
14
,54
14
,33
2 0 1 5 2 0 1 6 2 0 1 7 2 0 1 8
S E A T S O R I G I N A T I N G F R O M O R T I A ( M I L L I O N S )
• Lagos
• Dar Es Salam
• Mauritius
• Libreville
• Upington
• Mthatha
• Plettenberg
Bay
Top Opportunities
*SAA shed over 1.2 million seats & Mango only filled 35%
• Mumbai
• Phuket
• Lisboa
• Bangkok
• Dublin
• Brussels
• Auckland
• Shanghai
• Melbourne
• Brisbane
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AIRPORTS COMPANY SOUTH AFRICA 16
NELSON MANDELA BAY AIRLIFT
Current
Pipeline
Top Opportunities:
Short-Haul: (12 – 24 Months)
1. Kruger – Mpumalanga2. Windhoek – Namibia3. Kigali – Rwanda4. Harare – Zimbabwe5. Lanseria — Gauteng
Long-Haul: (5 – 8 Years)
1. London – UK2. Frankfurt – Germany
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AIRPORTS COMPANY SOUTH AFRICA 17SECONDARY AIRPORTS:
INTRA-CONNECTIVITY
With Golden Triangle
Without Golden Triangle
C
U
R
R
E
N
T
▪ The golden triangle remains
the anchor for regional Airports
connectivity
▪ Outside the triangle, regional
connectivity is below
acceptable level thus
constraining mobility
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AIRPORTS COMPANY SOUTH AFRICA 18
❑ Connectivity for Small
communities
• Bram Fischer to link
Coastal and Inland Cities
• Regional aircraft has
favourable economics
and configuration
BRAM FISCHER AIRPORT AS
REGIONAL ANCHOR
FUTURE
❑ Collaboration is key
• Airlines
• Airport
• City & local
government
• stakeholders
❑ Enabling Structures
• Garden Route Airlift
• Mangaung Airlift
• Northern Cape
Airlift
• Eastern Cape Airlift
Regional airports integration into the national air transport network will focus on Bram
Fischer as an anchor for regional connectivity
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19
AIRLIFT STRATEGY KEY SUCCESSES
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AIRPORTS COMPANY SOUTH AFRICA 20
KEY SUCCESS FACTORS
Rome
Sao Paolo
Madrid
Kigali/Harare
Nairobi/Victoria
Falls/Livingstone
Hong KongAddis Ababa
O.R Tambo International Airport Cape Town International Airport King Shaka International Airport
Frankfurt
Gatwick
London
Dubai
St. Helena
Gaborone/Windhoek
Vienna
Zurich
*Seasonal
Gatwick
Munich
Singapore Via OR Tambo MaunLubumbashi
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AIRPORTS COMPANY SOUTH AFRICA 21
KEY CHALLENGES
FUNDING: Airline incentivisation and route marketing
EXTERNAL DEPENDENCIES: Airlines and the industry operating
environment (i.e. aircraft availability and oil prices)
COMMITMENTS: From key stakeholders to promote air access
i.e. agencies
TARIFF PERMISSION: Funding for Bram Fischer Airport
infrastructure to support the regional air access strategy and meet
demand.
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22
AIRPORTS INFRASTRUCTURE ISSUES
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AIRPORTS COMPANY SOUTH AFRICA 23
AIRPORT INFRASTRUCTURE ISSUES
Compliance and Compatibility
• Code F compliant to
accommodate larger aircraft
such as Airbus A380 in
Cape Town
• Related taxiways for faster
turnaround times on runway
Congestion and Capacity
• Terminal Congestion
Check-in facilities, boarding
gates, departures lounges
etc.
• Airside Capacity –Apron
parking stands; to
accommodate and unlock
traffic growth (passenger
and cargo).
• Runway Capacity to
accommodate traffic growth
Efficiency and Technology
• Account for changes in
the landscape:
• Technology e.g. self
service end to end
process for passengers
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24
RESPONSE TO INFRASTRUCTURE ISSUES
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AIRPORTS COMPANY SOUTH AFRICA 25
O.R. TAMBO INTERNATIONAL
AIRPORT MASTER PLAN
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AIRPORTS COMPANY SOUTH AFRICA 26
O.R. TAMBO INTERNATIONAL
REMOTE APRON STANDS
RAS
• 9 Code F stands in MARS
configuration (9 Code F or 18 Code C)
and 7 Code C stands linked with the
Western Terminal Complex via an
internal airside link road.
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AIRPORTS COMPANY SOUTH AFRICA 27
O.R. TAMBO INTERNATIONAL
MIDFIELD CARGO PHASE 1
The Phase 1 Cargo development will consist of general cargo
warehouses, express and specialised cargo handling facilities, freight
forwarders warehouses as well as respective truck manoeuvring and
parking areas to accommodate 750 000 tonnes of Cargo per annum
It will consist of a total built-up area of approximately 700 000 m².
• 220 000 m² of cargo and specialised cargo handling facilities
• 70 500 m² of 1st tier cargo handling facilities
• 40 000 m² of specialised/express cargo facilities
• Forwarders/supporting 2nd tier facilities: 110 900 m²
• Mezzanine offices of approximately 40 000 m²
• Access Roads
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AIRPORTS COMPANY SOUTH AFRICA 28WESTERN PRECINCT
COMMERCIALISATION PHASE 1The Development is on a 8.5 hectare
site with 180 000m² of bulk of mixed use
development located on the north western
precinct of ORTIA. The development will
compromise of 7 phases :
• Offices – 50 000m²
• Retail – 21 000m²
• Transport Station – 5 000m²
• Hotel and Conference – 22 000m²
Phase 1A which shall consist of the
development of A Grade 33 000m² office
development and associated facilities as
follows:
• Block A – 13 500m² - 4-star green
rated, 6 storeys above podium
(SACAA)
• Block B – 12 000m² - 4-star green
rated, 5 storeys above podium
(ACSA)
• Block C – 5 000m² - 4-star green rated
,4 storeys above podium
• Block D – 2 500m² – 4-star green
rated, 2 storeys above podium
(common use facility which includes,
canteen, gym and other amenities)
• Upgrade of the Northern Roads
• Super Basement parking of 1967 bays
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AIRPORTS COMPANY SOUTH AFRICA 29CAPE TOWN INTERNATIONAL
AIRPORT MASTER PLAN
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AIRPORTS COMPANY SOUTH AFRICA 30CAPE TOWN INTERNATIONAL
NEW REALIGNED RUNWAY
New Realigned Runway
Existing Runway
The existing runway will be displaced at the
northern end with 220m to the east and rotated
at angle of 11.5 degrees.
The new realigned runway will be 3500 m long
and 75 m wide and fully Code F compliant.
Allowing for a future independent runway system
The runway will initially include two RET’s and a
partial parallel taxiway as indicated on the layout
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AIRPORTS COMPANY SOUTH AFRICA 31CAPE TOWN INTERNATIONAL
TERMINAL 2 REDEVELOPMENT
Terminal 2 Redevelopment comprises of the following:
• The expansion of the international departure baggage hall
• The addition of 2 Code F international carousels
• The reconfiguration of the customs and meeters & greeters areas
• New e-emigration gates
• Additional self service check-in & security capacity
• New arrivals retail mall
• New basement level
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AIRPORTS COMPANY SOUTH AFRICA 32
CAPE TOWN INTERNTIONAL
NEW DOMESTIC ARRIVALS • Redevelopment of Domestic Arrivals
Terminal
• Increased meeters & greeters area
• Increased baggage reclaim area that will
provide additional space between
carousels
• Additional carousel ( #7)
• Basement level for delivers & commercial
storage
• Second Floor retail enablement ( adjoining
domestic departure lounge )
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AIRPORTS COMPANY SOUTH AFRICA 33
KING SHAKA INTERNATIONAL
AIRPORT MASTER PLAN
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AIRPORTS COMPANY SOUTH AFRICA 34
• Expansion of the terminal building towards the north, to provide additional capacity
for the international terminal.
• Two wide body carousels on the arrivals level.
• Inclusion of an additional check-in bank, on the departures level, with additional
international airside retail and emigration reconfiguration.
KING SHAKA INTERNATIONAL
TERMINAL EXPANSION
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AIRPORTS COMPANY SOUTH AFRICA 35
BRAM FISHER AIRPORT
AIRPORT DEVELOPMENT
• Reconfiguration of the existing terminal to provide additional space for both the
lounge and common concourse space.
• Construction of one additional code C stand. A new GA area will be constructed
west of the new stand.
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AIRPORTS COMPANY SOUTH AFRICA 36
EAST LONDON AIRPORT
AIRPORT MASTER PLAN
• Expansion of the departure lounge by approx. 300m2, including allowances for retail
• Construction of a Multi-story Parkade and access roads to accommodate future traffic
growth.
• The Multi-story Parkade will have a minimum of 800 bays in total.
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AIRPORTS COMPANY SOUTH AFRICA 37
GEORGE AIRPORT
LAND-USE PLAN
• Extension of the terminal building with a new processing facility, including a
concourse to provide for contact stands.
• Relocation of existing Rescue and Fire Fighting Facility and General Aviation
area
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AIRPORTS COMPANY SOUTH AFRICA 38PORT ELIZABETH AIRPORT
AIRPORT MASTER PLAN
• Extension of the terminal building with a new processing
facility, including a concourse to provide for contact stands.
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AIRPORT TARIFFS
IMPACT OF THE AIRPORT TARIFFS ON TOURISM
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AIRPORTS COMPANY SOUTH AFRICA 40
AIRPORT TARIFFS
Source: IATA Economics 2014
Airports tariffs accounts for 5% of an airline direct operating cost
Air navigation charges4%
Other1%
Fuel and oil33%
Maintenance and overhaul
9%
General and adminstrative
7%
Flight deck crew7%
Reservations, ticketing, sales and
promotions7%
Station and ground7%
Aircraft ownership11%
Airport charges5%
Cabin crew5%
Passenger service *4%
AIRLINE COST STRUCTURE
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AIRPORTS COMPANY SOUTH AFRICA 41
Airport charges
+/- 50% off all
revenues
Passengers
+/- 67% of
total
Airlines
+/- 33% of
total
Passenger
service
charges
Landing fees
Parking fees
PSC Tariff
Domestic R87
Regional R181
International R238
Landing fee
• Based on aircraft
maximum take-off
weight
• Differentiated between
domestic, regional and
international
Parking fee
• Based on time parked
in excess of 4 hours
• Differentiated between
domestic, regional and
international
Levied on the
airline ticket as a
regulated charge
(VAT incl.)
Airline
operational cost
The airport tariffs charged on an air-ticket are unlikely to influence traveller behaviour.
AIRPORT CHARGES
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THANK YOU