VictoriaFallsInternationalAirportinZimbabweisanexampleofhowChinaisbuildingaviationinfrastructureinAfricaCHENYAQINATEthiopia’smainairportatBoleinAddisAbaba,Chineseandlocalengineersinhelmetsandoverallsworkroundtheclockonapassengerterminal.Theyhavebeenbusywiththisnon-stopcycleforthelasttwoyearswhentheEthiopianAirportsEnterprise(EAE)firstannounceditsambitiousexpansionprogram.
Estimatedtocost$350million,theproject,dueforcompletionbytheendof2017,hasbeencontractedtotheChinaCommunicationsConstructionCo.Ltd.(CCCC),withafinancingarrangementfromtheExport-ImportBankofChina.AccordingtoaprofileofexpansionbyEAE,Singaporeanarchitecturefirm,CPGCorp.,wasalsoinvolvedinthedesign.
Oncecompleted,saysHiwotMosisa,DeputyCEOofEAEinchargeofairportinfrastructureandfacility,theAddisAbabaBoleInternationalAirportwillcomeofage,linkingtheregionwiththeoutsideworldbyhandlingmorepassengers.
Theexpansionismainlyfocusedonmodernizingthecurrentmainterminals.CCCCwill,bytheendofthisyear,havedevelopednewboardinggates,installednewboardingbridges,VIPpassengerloungesandboardingareasandbuiltanewcarpark.
“Wearehopingthatthiswilltripleourpassengerhandlingcapacity,whichwillmeanthattheairportcanhandleabout20millionpassengersannually,”MosisatoldanaudienceattendingtheModernAirportsAfricaConferenceinNairobiinJanuary.
“ThisexpansionandotherrelatedprojectsareaimedatmakingAddisAbabathehuboftheregion,”saidMosisa.
Openingup
TheEthiopianGovernmenthasbeeninvestingheavilyinaviation.Thecountryrecentlyannounceditwillputupanewairportontheoutskirtsofthecapital.Settocostupto$4billion,thefacilityissetforcompletionby2024andwillhaveuptofourstandardrunways,accordingtopreliminaryinformationissuedbyEAE.
Currently,therearefiveotherregionalairportsandairstripsbeingexpandedinthecountryatthecostof$105million.Settobecompletedby2019,EAEsaysthesefivewillmakeairtransportationwithinthecountryeasierandhencelinkthemaincitiesaswellasopenupthehinterlandtoinvestors.
Ethiopia’scrazeinexpandingitsaviationinfrastructureisnotisolated.InneighboringKenya,twomainprojectsworth$650millionwillseetheairportsinMalindiandEmbucountiesgetamassivefacelift,TransportPrincipalSecretaryIrunguNyakeratoldChinAfrica,addingthattheprojectsshouldbecompletedbefore2018.
“Malindiisatouristtown,anexpansionwillencouragemoreairlinestoflyindirectlywhichwillinturnhavearipple-effectonthegrowthoftourism,”heexplainedonthesidelinesoftheconferenceinNairobi.
InAfrica,therearecurrentlyabout10airportprojectsinvolvingeitherrebuildingofoldairportsorconstructingnewones.Accordingtobudgetaryestimatesprojectedbyeachoftheseprojects,Africawillspendabout$35billiononthisinfrastructure.
Carriersinvestingmore
Thisexpansionisalsofuelinginvestmentsbycarriers.Ac-cordingtoananalysisbytheSeaburyGroup,aleadingglobaladvisoryandprofessionalservicesfirmheadquarteredintheUnitedStates,Africanairlinesmade39ordersforcommercialaircraftin2016,eithertoBoeingorAirbus.AthirdofthemwereorderedbyEthiopianAirlines.Asonlyfourmajorairlines(EthiopianAirlines,KenyaAirways,SouthAfricanAirwaysandEgyptAir)areinvolvedinglobalalliances,thegrouppredictsmorejointventuresinaviationtransportespeciallybetweenthebigandsmalloperators.
“Theneedformoreandmodernairportfacilitiesisstrongernowthanbefore.Africaisgrowingandpeopleneedtomovefastertodotheirbusinessregardlessofwheretheyarecomingfrom,”AlexandreMbiam,StrategicandFinancialAdvisoratconsultingfirmAshdownAdvisory,toldChinAfrica.
“Suchgrowthdemandsthatinvestingininfrastructure,forAfricannations,isnolongeranoption,butarequirement,”headded.
Mbiam,aneconomistfromCameroon,saysrapidurbanizationonthecontinentmeansmorepeoplewilltravelbyairinthefuture.TheInternationalAirTransportAssociation(IATA)says70millionpeopletraveledthroughAfricanairportsin2015,creatingabout7millionjobsbothdirectlyandindirectlyandsustaininganannualaviationgrowthof5percentperyear.
Theseinvestments,hesays,areneededtoreplacearchaicfacilitiescommoninAfricaaswellasimproveonthesafetyoftransportationinAfrica,whichisconsideredtheworstintheworld.
Africaalreadyhassomeofthebusiestairports.SouthAfrica,Egypt,Nigeria,Kenya,Morocco,andTunisiaallcarryacombinedpassengertotalofmorethan100millionannuallyaccordingtoIATA.Forcargo,themainairportsinNairobi,Cairo,AddisAbaba,JohannesburgandLagostransportacombinedweightof1.24milliontons.
ThesearethecountriesthatwereamongtheearlysignatoriestotheYamoussoukroDeclarationin1991toliberalizetheskiesasawayofdevelopingtheaviationindustry.KnownastheSingleAviationMarket,44countriesinAfricasignedthetreatytoremovebarrierstoairtransportandhavecommonstandardsforairsafety.
Interconnectedinfrastructure
InaspeechtotheAfricanUnion,thenAUCommissionChairpersonNkosazanaDlamini-ZumapaidspecifictributetoRwanda,Ethiopia,SouthAfrica,NigeriaandKenyaforleadingthewayinaviationbutsaidmorecountriesmustjoininthisgrowth.
“WemustencourageothercountriestojointhemtoopentheirairspacestoallAfricancountries,”shesaid.
“Africa’sfuturewilldependonintegrationandthisincludesbuildinginterconnectedinfrastructure,”sheadded.
Buttherearechallenges.Africa’sinfrastructureisstillbelowpar,arguesAmaniAbou-Zeid,thenewCommissionerforInfrastructureandEnergyattheAUCommission.
Abou-Zeid,anEgyptiandevelopmentexpert,toldChinAfricajustbeforeshewaselectedthattheshortageofenergyandtransportinfrastructurehasallcontributedtoslowprogress.
“Ifyoulookatthesituationnow,eachcountryhasfocusedonitsowninfrastructuregrowth,beitinenergy,transportationortechnology.Thishasledtoothercountriesadvancingwhileotherslagbehind,”shesaid.
“Ithinkwewillhavetoinvestintransnationalprojectsevenaswestrengthennationalinfrastructure,”shesaid.
AccordingtodatafromtheWorldBank,theintra-Africaairtransportmarketremainslargelyunderserved.At32percent,AfricatrailsEurope(51percent),NorthAmerica(66percent)andAsia(68percent).
Infact,fiveAfricancarriersfromEthiopia,Egypt,Morocco,SouthAfricaandKenyacarrytwothirdsofAfricapassengernumbersfrom54countries,accordingtoananalysisfromfinancialgroupAscend.
Thisinturnmakesairtransportexpensivecomparedtootherregions.
“WestilllacksufficientmodernfacilitiesinAfrica.Airtransportisstillunderdeveloped.ThroughoutAfrica,thereisapersistentproblemoflackofspecializedfacilitiestomovesensitivegoodsforexample.Inotherplaces,thereisn’tevenenoughparkingfortravelers,”lamentedSanjeevGadhia,CEOofAstralAviationLtd.,acargocarrierbasedatNairobi’sJomoKenyattaInternationalAirport.
Infact,Africa’sairlineswereprojectedtomakeacombinedlossof$500millionin2016,accordingtoIATA.KenyaAirways,forexample,hasmadeconsistentlossessince2014.In2016,itannounceda$258millionloss,accordingtoitscompanyrecords.
GadhiathinksthecurrentsustainedimprovementsininfrastructurewillseeAfrica’sairtransporttakeoff.Buthealsorecommendssufficienttrainingforstaffatairports,privatepublicpartnershipstoalleviatecosts,aswellaswhathecalledan“interface”betweenaviationtransportandotherformsoftransportation.
“Investmentinaircargoinfrastructureshouldbeapriority.Customerfocusisessential,especiallynowthatweexpectcompetitionamongregionalairportstorise.Flexible,smartterminals,forexample,arethewayforthefuture,”hesaid.
“Ifwehaveaproperinterfacebetweenairandotherformsoftransport,weremovedelaysfromairports,forexample,somethingthathasbeencommoninAfrica.”
(ReportingfromKenya)
Theneedformoreandmodernairportfacilitiesisstrongernowthanbefore.Africaisgrowingandpeopleneedtomovefastertodotheirbusinessregardlessofwheretheyarecomingfrom.
AlexandreMbiam,StrategicandFinancialAdvisor,AshdownAdvisory