INDIAN AIRPORTS - A LEAP FORWARD

V K KALRA
EXECUTIVE DIRECTOR

(Key Infrastructure Development), AAI

MUMBAI 25.01.2008

Indian Airports

449 airports/airstrips 16 International, 7 Customs Airports AAI manages 128 airports (90 operational) 28 civil enclaves in defence airfields

Growth in Aviation Sector

Impressive growth in air traffic

Passenger traffic grew at over 25% p.a. over last 2 years Air Cargo grew at 10% over last 2 years

Long term growth projections

8-10% p.a. in passenger traffic 7-9% in cargo

Challenge is to provide the requisite airport infrastructure

Infrastructure

Inadequate runways, parking and terminal capacity cause congestion Adds to delays and cost

Delay in landing costs Rs. 1.25 lakh an hour

High concentration of traffic:

40% in Delhi and Mumbai 70% in 5 airports

Carriers levying congestion surcharge on passengers Ultimately the consumer and economy pays

Steps to decongest airports

Expansion and modernisation of existing airports is a key priority area Initiatives taken

Redevelopment and modernisation of metro airports

Delhi and Mumbai through the PPP route Kolkatta and Chennai by AAI

Major programme for modernization of 35 non metro airports by AAI Promote greenfield private airports: Bangalore and Hyderabad airports through PPP route Upgrade CNS equipment and ATC services

Investment Proposed

Delhi : $ 2.2 billion in Phase - I Mumbai : $ 1.5 billion in Phase-I Bangalore: $ 483 million Hyderabad: $ 440 million Chennai: $ 588 million Kolkatta: $ 486 million 35 Non metro airports: $ 1.5 billion Other non-metro, including NE: $ 352 million Other greenfield airports on the anvil: $ 2 billion CNS-ATM and other equipment: $ 682 million

Status of airport development

Delhi and Mumbai

transferred to the JV Partner in May, 2006. Phase I to be completed by 2010 To be commissioned in March 08.

Hyderabad and Bangalore

Kolkatta and Chennai

Planned to be completed by 2010

24 to be completed by 2009 11 to be completed by 2010 In-principle approval granted

35 non metro airports

Navi Mumbai, Mopa and Kunnur airports

Several new proposals on the anvil

PPP for city side development

24 airports have been identified for development of city side through PPP route Would include commercial operation & maintenance of terminal buildings, cargo development and city side development Process has commenced, bids invited for 2 airports

New initiatives

Develop tourist circuits

Use existing air strips

Policy on the anvil

Enable setting up of Private airports

Promote low cost airports Standardisation of bidding process Airport Regulation

Setting up of independent regulator

Revenue Composition ~ 2006-07 Total Revenue Rs.3726 crores

Share from JVCs 499 13% Non-Traffic 851 23%

Traffic 1646 44%

Cargo 170 5%

PSF 560 15%

Importance of Air Cargo

Air cargo remains a vital mode of transport for Indias international trade especially for products with high value or value addition. The five major airports (Mumbai, Delhi, Kolkatta, Chennai and Bangalore) account for around 88% of the total air cargo handled in India. Need to have a well networked air cargo system to connect far flung areas and providing access to new markets

AIR CARGO IMBALANCE

900000 800000 700000 600000 500000 TONNAGE 400000 300000 200000 100000 0 1995- 199696 97 1997- 1998- 199998 99 00 2000- 2001- 2002- 200301 02 03 04 FY 2004- 2005- 200605 06 07

LOADED UNLOADED

INTERNATIONAL CARGO
600000

500000

400000

TONNAGE 300000

LOADED UNLOADED
200000

100000

0 199596 199697 199798 199899 199900 200001 200102 200203 200304 200405 200506 200607

FY

Infrastructure Challenges
Infrastructure constraints due to limited air cargo processing space . In addition, remedial actions are also required for the following issues in the air cargo complexes
inadequate material handling equipment slow retrieval of cargo from the storage warehouse to the customs clearance, poor quality of the warehousing facilities, inadequate maintenance and up gradation of support infrastructure, lack of an efficient Electronic Data Interchange (EDI) system and Preparing for a competitive environment and brushing aside monopolistic regime. Inadequate cold storage facilities

Other Challenges
Cumbersome Procedures and Delays related to numerous clearances-need for simplification Lack of modern technology / systems in the work place. Lack of adoption of operational and processing methods Diminishing Returns to all players in Industry. Increased supply chain reliability , speed & visibility. Ever increasing cost of operations.

Initiatives

Encouragement of private sector in order to bridge the resource gap as well as to bring greater efficiency . Development and up gradation of nonmetro airports. Potential to develop India as a regional air cargo hub Nagpur initiative An Inter-Ministerial Group has been formed to suggest measures for improving Air cargo facilitation.

Cargo Operation at Delhi and Mumbai Airports

Entrusted to Developers Developer to Maintain competitive environment Service Level

Average Dwell Time defined in OMDA Quality Standards of facilities Contemporary prevailing standards at top five international airports in South Asia

Development, Management and Operation through PPP Intention

o o o o

Cargo Operations Non-Metro Airports

Provide Air Cargo processing facilities Comply with IATA recommendations Efficiency Broad based Approach
o o

o
o o o

Loose Shipments Containerized Shipments Perishables Express Shipment Dangerous goods Precious Cargo

Usher better management skills and leverage City Side

Cargo Operations NonMetro Airports

Define Developmental Standards

Minimum Annual Capacity Warehouse Area ( Design Land Use) Land side docking Capacity No. of ULD/Pallet Storage locations No. of Airside Transfer Lanes Peak day Capacity

Define Performance Standards

Performance Standards

Truck Dock Allocation Time Domestic Cargo Reception Time Export Cargo Reception Time Import Cargo Collection Time Import Cargo Complete Breakdown time Mishandling rate and other service levels

Prescribe Charges

THANK YOU
V. K . KALRA vkalra.in@gmail.com

Ahmedabad

Estimated Cost Completion:

Rs.348 cr. Dec. 07 (Domestic) Feb. 09 ( International)

Amritsar

Estimated Cost Completion

Rs.80 Cr. Dec. 07

Bhubaneswar

Estimated Cost Completion

Rs.140 cr. June 09

Calicut

Estimated Cost Completion

Rs.90 cr. Sep. 07

Dibrugarh

Estimated Cost Completion

Rs.54 cr. Sep. 07

Jaipur

Estimated Cost Completion:

Rs.95 cr. Oct. 07 (International)

Mangalore

Estimated Cost Completion

Rs.132 cr. Dec. 08

Nagpur

Estimated Cost Completion

Rs.77cr. Sep. 07

Srinagar

Estimated Cost Completion

Rs.78 cr. Sep.07

Trivandrum

Estimated Cost Completion: International Terminal Ph-I

Rs.245 cr. Dec.08

Varanasi

Estimated Cost Completion

Rs.94 cr. Dec. 08

Vizag

Estimated Cost Completion

Rs.95 cr. Oct. 07

Glass and Steel Structuresthe Future airports

Glimpses of few upcoming Airport Terminals

Srinagar

Surat
Ranchi

Varansi

Ahmedabad

Jaipur

Trivandrum

Visakhapatnam

Khajuraho

Udaipur
Dibrugarh

Amritsar

Trichy

Calicut