King Abdulaziz International
Airport in Jeddah
GCC states prepare ground for take-off
The Gulf region is witnessing major activity in the airport sector with new airports and expansion of existing ones to the tune of $45 billion, in addition to cities worth billions more centred around the airports
01 July 2009
AMONG sectors of the construction industry that continue to fly high despite the current economic slowdown, is airport development, which is being actively pursued even by the traditionally more cautious markets of the region.
Right from Oman in the south to Kuwait in the north and from Jeddah, Saudi Arabia in the east to Doha, Qatar to the west, mega development plans are being embarked upon to meet the region’s ambitions in the aviation sector and cater to the growing influx of visitors, both business and tourist.
In fact, aviation experts believe that the regional airline industry will continue its impressive growth over the next five years.
More than $45 billion worth of airport-related projects are under way in the GCC, Iraq and Iran, according to Meed, and analysts estimate that airport development in the larger Middle East, North Africa and Asian subcontinent will be worth an additional $15 billion in planned and ongoing projects, bringing the total investments to $60 billion. These figures account for close to 40 airports being constructed or modernised across the region.
Apart from purely airport structures, the region is now looking at gaining commercial benefits from these hubs and is intent on developing virtual airport cities. The trendsetter in this respect is Dubai, which is currently developing the $33-billion Dubai World Central, centred around the new Al Maktoum International Airport, which is being built 40 km from the existing Dubai International Airport. More recently, Saudi Arabia announced that it plans to invest more than $12.3 billion to overhaul its airports until 2020 and is inviting investors to develop ‘airport cities’ centred on its international airports. Throughout the region, a number of contracts have been announced this year and tenders are being invited for number of packages on these mega developments.
Bahrain
Among the latest contracts to be awarded in the sector went to Hill International for project management (PM) consultancy services for a major expansion at Bahrain International Airport (BIA).
BIA’s expansion includes two new terminals, aprons, a people-mover system and associated facilities as well as the development of an adjacent ‘airport city’ with hotels, conference centres, and retail and recreational facilities.
The first phase involves the expansion of the existing passenger terminal and the construction of a second passenger terminal, with a rail link between the two.
Work on a second terminal, which is expected start early next year for completion by 2013, will almost double the current capacity of the airport – allowing it to handle 12 million passengers every year, up from seven million at present.
Conceptual designs for the multi-million-dollar project have already been completed by British firm Llewelyn Davies Yeang (LDY).
The project will also see the construction of a new VIP terminal and an airport centre that includes shops, cinemas and a multi-storey car-park capable of holding 3,000 vehicles. Further expansions are planned in future that would allow the airport to handle 28 million passengers by 2038, according to Dr Osama Alali, chief executive officer, Bahrain Airport Company (BAC).
Architects are due to be appointed before the year-end to draw up detailed plans for the airport, while the main contractor is expected to be appointed early next year.
Expansion work has already started on the airport's remote stands and is being carried out by Haji Hassan Group. It will provide stands for 17 small A320s or eight A380s and will ultimately create 110 stands, including 87 with contact gates. The airport currently has 25 stands, including seven air-bridges.
Kuwait
Kuwait’s Directorate General of Civil Aviation has finalised specifications and invited bids for the implementation of the first and second phases of development at Kuwait International Airport. The projects include the development and extension of the western runway, aircraft hangars, approach roads leading to the airport, a new headquarters for the directorate, as well as two fire stations.
The main focus is on improving runways to be able to receive the Airbus A-380 and the Boeing 747-800.
Bids are also expected to be invited for the third phase, which will include the construction of a third runway and its facilities, in addition to infrastructure services. The directorate also plans to build a new terminal to increase the airport’s passenger capacity from seven million to more than 20 million per year.
Kuwait International Airport intends to invite private sector participation on a build-operate-transfer (BOT) basis, to develop hotels, heavy-duty aircraft maintenance facilities, fuel stations, as well as new cargo buildings, which would be able to handle up to two million tonnes every year.
Meanwhile, construction of the Amiri lounge and facilities for Kuwait Aviation Fuel Company (Kafco) is under way.
Oman
Oman’s government last month signed a series of agreements for the construction of a new domestic airports as well as the modernisation of the country’s two international gateways in Muscat and Salalah.
A total of 13 contracts, worth around $1.5 billion, were signed with a number of local and international firms – the biggest involving the upgrade of Muscat and Salalah international airports.
The largest of these contracts worth $1.16 billion went to a joint venture of the Greek Consolidated Contractors Company (CCC) and Turkey’s TAV Insaat to expand the runway and undertake infrastructure works at the Muscat International Airport.
Construction work is estimated to take 32 months. TAV Insaat has also been pre-qualified in an upcoming tender to build a terminal building for the airport.
As part of the ongoing expansion of the airport, a new 17,000 sq m passenger terminal annex was opened last April. The project was implemented by Oman Airport Management Company at a total cost of $38.96 million.
Meanwhile, Strabag Oman has won the first civil work package on the new airport being built in Sohar. The package covers site preparation works, construction of access roads and other related facilities.
Among other developments, Oman opened its privately-owned airport of Qarn Alam in Central Oman early this year. The new facility is one of three new airports built and operated by Petroleum Development Oman (PDO).
Qatar
Qatar Airways has announced that more than $1 billion is being invested in the infrastructure improvements at the Doha International Airport as construction of the New Doha International Airport (NDIA) continues. The investment will see the opening of a new transit terminal at the eastern apron featuring eight gates, a snack centre and a duty-free shop, operated by Qatar Duty Free, one of the airline’s subsidiaries.
In addition, Qatar Airways’ Premium Terminal, for exclusive use by its first and business class passengers, will have more than 80 per cent extra seating space will the imminent opening of an extension to the dedicated business class section.
The $9-billion NDIA airport is taking shape on a greenfield site, which covers an area of 2,200 hectares, where various components – right from the terminals and the concourses to the service tunnels – are under construction simultaneously.
When the airport opens by its revised 2011 deadline, it will be one of the first airports in the world to accommodate unrestricted operations by all commercial aircraft, including the new A380 airliner that will soon be added to Qatar Airways’ fleet.
The airport is designed to annually handle 24 million passengers, 1.4 million tonnes of cargo and more than 360,000 aircraft movements. The airport’s masterplan provides for an ultimate annual capacity of nearly 50 million passengers and 2.5 million tonnes of cargo.
The development continues to evolve in tandem with the nation’s rapid growth and in line with these needs. In January, Sky Oryx – a joint venture of Japan’s Taisei Corporation and Turkey’s TAV, which is the contractor for the terminal complex – was awarded an additional package worth $1 billion, which entails an extension to the main terminal building and associated facilities.
As work continues on the various components of the project, the design work is being done for the next phase of the terminal, which involves the construction of the ‘north node’ section of the passenger terminal. This will be a five-level structure with a gross floor area of 130,000 sq m.
By opening day, two runways – 4,850 m and 4,250 m respectively built 2 km apart – a 550,000 sq m passenger terminal/concourse with 41 contact gates and remote gates, an Emiri Terminal, air traffic control tower, cargo complex and aircraft maintenance centre will be completed.
Saudi Arabia
Saudi Arabia has ambitious plans to overhaul its aviation sector at an investment of more than $12.3 billion until 2020, according to Abdullah Rehaimi, president of General Authority for Civil Aviation (GACA).
Besides setting up a new company to manage its 27 hubs, Gaca is working with the International Finance Corp, a member of the World Bank Group, to develop three airport city projects at the kingdom’s three international airports — King Abdulaziz International Airport (KAIA) in Jeddah, King Khalid International Airport in Riyadh, and King Fahad International Airport in Dammam – and has been keenly seeking private sector participation in these efforts.
Gaca is speeding up its tendering schedule for the redevelopment of KAIA and is also going ahead with an expanded new passenger terminal, which will occupy more than 600,000 sq m, an increase of 60 per cent from the 375,000 sq m that was originally conceived.
The $11.3 billion expansion of KAIA is now under way. Al Mabani Contracting of Saudi Arabia is engaged in the mass earthworks and rough grading contract for the apron, terminal building and landside facilities at the complex (See GCM May 2009).
Other smaller airports are being built including one being at Al Ola, located close to the famous historical site Madain Saleh, which will be completed next year at a cost of SR143 million. The project includes construction of a passenger lounge to handle 190 people per hour, the main runway and an aircraft hangar.
Gaca is also inviting bids for the new Prince Muhammad Bin Abdul Aziz International Airport in Madinah, on a BOT system. The project involves the construction of terminals and runways.
UAE
Two of the region’s largest airport complexes are taking shape in the UAE – in Abu Dhabi and in Dubai.
Work on the $6.8-billion redevelopment programme at Abu Dhabi International Airport is reported to be progressing on schedule. A number of tenders have been issued recently for packages on the development, some of the latest being for new remote hardstands and apron pavement rehabilitation and lighting.
A second new runway and a third terminal have already been completed as part of this project, while a second air traffic control tower is under construction.
Abu Dhabi Airports Company (Adac) completed the Dh1-billion new terminal at the airport last April, expanding its capacity to over 12 million passengers a year from the current five million passengers a year. The contract for the proposed Midfield terminal is expected to be awarded by early next year.
Meanwhile, investors are being wooed for the new business and logistics park, which will occupy a 12-sq-km site adjacent to the Abu Dhabi International Airport.
The Logistics Park is being developed in two phases. Construction of the first phase, which commenced in 2007, is expected to be complete in 2010. The second phase is expected to begin in 2011 for completion in 2015.
Dubai’s new airport is expected to open next year under its first phase. Work on the first of 16 cargo terminals has been completed, the first passenger terminal is nearly ready, and the Middle East’s tallest control tower is being fitted out at the $10 billion Al Maktoum International Airport. Expected to become the biggest airport in the world when complete, the airport is located within Dubai World Central (DWC), a 140-sq-km urban aviation city under construction in southwest Dubai.
The first passenger terminal is 80 per cent complete with MEP (mechanical, electrical and plumbing) works ongoing. This terminal will have a capacity of seven million passengers with the airport’s ultimate capacity being 160 million annually.
With infrastructure costs estimated at $33 billion, DWC comprises six zones: DWC-Al Maktoum International Airport, Dubai Logistics City (DLC), DWC Aviation City, DWC Commercial City, DWC Residential City and DWC Golf City.
Meanwhile, in Dubai, Dubai Airports Company (DAC) is considering developing facilities at the emirate’s existing airport to deal with additional traffic until the new airport opens.
The existing airport is undergoing a $7.2-billion expansion which has included construction of Terminal 3 and the second concourse, which opened last October, and Concourse 3. There are also plans for a new runway to accommodate Emirates’ A380 super jumbos, of which it has ordered 58.
Dubai Aviation City Corporation awarded the main $1.17-billion package of the airport’s Concourse 3 to Al Jaber Engineering & Contracting (Alec) in April. Concourse 3 will be dedicated to Emirates and will provide 20 contact gates including 18 gates specifically designed for A380 aircraft and it will increase the passenger handling capacity at Dubai International Airport to 68 million passengers per year. Work on the concourse, which has already begun, will be completed by the end of 2011.
Al Habtoor Leighton and joint venture partners Murray & Roberts and Takenaka recently pulled out of a deal to build the third concourse.
Among the other emirates, Sharjah plans to build a new $354-million terminal to meet the growth in demand as more passengers are using the emirate’s airport.
