Desmond Shum - Session 3: Airport Cities – A special focus on how China and India are developing...

April 1st 2014

Airport City Development opportunities in China

Desmond Shum

Chairman of Aeropolis Group

www.aeropolisgroup.com

1 www.aeropolisgroup.com

Aeropolis Group Delivering World-class Airport Cities to Foster Local Economic Development We finance and develop large-scale projects with airports at their heart.

Partnering with investors, governments and related businesses, we

provide tailor-made plans for the development of airport cities, promoting

development in the areas around airports and creating long-term

economic value for our partners, the city and the wider community.

Aeropolis Group, formerly as Airport City Development Co., Ltd (ACL), led

the planning and development of the Beijing Tianzhu Free Trade Zone,

the major component of Beijing Airport City. It is the first of its kind in

China, a Public-Private Partnership among airport authority, local

government and private enterprise in airport facility and business

development.


Beijing Airport City Airport City Logistics Park (ACLP)

ACLP is strategically located north of the

second runway of the Beijing Capital

International Airport (BCIA), with a total site

area of 3.33 sq km.

− Integrating of Air Cargo Terminals, Express

Center, Import Custom Supervision Area and

Export Cargo Consolidation Area, Bonded

Logistic Center, and Office Complex into a

seamless logistical zone, significantly improving

efficiency in the customs clearance process.

− In addition to ACLP, the Aeropolis Group led the

planning and development of the Beijing Tianzhu

Free Trade Zone, the first airport free trade zone

in China.

The ACLP officially went into operation on

December 2010.

From 2010 to 2013, BCIA cargo volume

increased from 1.55 million ton to1.84 million

ton, with CAGR of 5.9%.


China is aggressively building airports

• According to China Aviation

Department information, the

PRC government plans to

invest heavily in aviation.

During the 12th-5 year plan

period (2011-2015), China

plans to construct 82 additional

airports and upgrade 101

existing ones.

Five-year construction goal

New construction 82

upgraded existing ones 101

Resource：The 12th -5-year plan of the China Aviation Department


Opportunities in different tier of cities

Tier 1

• Beijing, Shanghai, Guangzhou,

Shenzhen

• Large air passenger and cargo volume,

Aviation routes are fully developed

• Focus on operational efficiency, upgrade

of infrastructure as well as commercial

and industrial park

Tier 2

• Provincial capitals and other major cities;

• High potential growth in air passenger

and cargo volume

• Opportunities: Focused regional

logistics center model and “new city”

model

Tiers 3-4

• Medium to small cities with suitable

infrastructure/resources

• Many are considering airport construction

or expansion

• Opportunities: Infrastructure development,

passenger and cargo handling


Challenges facing Airport City Development in China

Shortage of best in class experience

and knowhow increases risks

Ownership structure of

Airports in China

• Main challenge is complex airport

ownership and regulatory environment

Aviation

Industry

Aviation

functions

Non-

aviation

functions

Function

mix

New City

Develop

ment

Urban

Planning

Regional

Planning

Develop

ment

Strategy

Civil Aviation Authority/Capital

Airport Holding Company

Airline Company

Local Government

Provincial Airport

Holding Co Interprovincial

Airport Holding Co


Key success factors of airport city development in China

Airport design: emphasize on flow planning and function design to

optimize operation efficiency and enhance customer experience

Integrated airport cities: leveraging real estate development experience

and deep knowledge of aviation industry to follow the airport function

extension and city expansion trend

Combine international best practice with local experience

1

2

3 Industry within airport cities: regional city planning should be led by

industry planning to promote airport city business value and social

prosperity

4

Implementation: comprehensive range of solutions from investment

planning, design, development, construction through operation 5


Aeropolis Group will bring together airport city related

partners to develop a strategic alliance that aligns

industry resources to create competitive advantages, and

develops airport city projects collaboratively.

www.aeropolisgroup.com

Desmond Shum - Session 3: Airport Cities – A special focus on how China and India are developing...

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Transcript of Desmond Shum - Session 3: Airport Cities – A special focus on how China and India are developing...