KAC Focusing on South American Market
Incheon Airport plans to submit a bid to be selected as the operator of the Kuwait Airport Terminal 2.
Incheon International Airport Corp. (IIAC) and Korea Airport Corp. (KAC) are stepping up efforts to win foreign airport operation projects.
IIAC said on May 12 that it will participate in international bidding to be selected as the operator of Kuwait Airport Terminal 2, which is scheduled to be completed by 2022. Although the contract amount has not been disclosed, it must be a large project, considering that the new terminal is three times larger than Terminal 4, which has a processing capacity of 13 million passengers and cost US$2.1 billion. IIAC was selected as the operator of Terminal 4 in April 2018 for US$127.6 million.
The global companies that applied for the operation of Terminal 4 are expected to submit a bid this time again. They include French ADP, German Fraport, Turkey's TAV, and Ireland’s Dublin Airport. IIAC is confident to win the project as it has received a favorable response as the operator of Terminal 4.
IIAC started the foreign airport operation business in 2009. It participated in 29 projects in 14 countries, making some US$221.6 million. The type of projects varied, including operation support (Istanbul Airport in Turkey), technical support (Mactan Cebu Airport in the Philippines), master plan and feasibility study (nationwide airports in the Philippines), staff training (Indonesia’s PT Angkasa Pura 1) and equity investment (Khabarovsk Airport in Russia).
Since 2007, KAC has earned about 32 billion won by winning 11 projects, including airport operating system improvement and aviation education center establishment. In particular, it has made 25.3 billion won from 15 countries since 2008 through navigation equipment installation projects. Currently, it is focusing on the South American market. It is providing consulting services for the operation of six airports in the northeastern part of Colombia for 4 billion won.
KAC President Son Chang-wan delivered a proposal for operation of Manta Airport in Quito, capital of Ecuador, to the Ecuador government on May 7 (local time). KAC was selected as the preferred bidder for Manta Airport operation in 2017. If discussions go well, KAC will become a Manta Airport operator for 30 years. As an operator, it can exercise all of the decision-making rights necessary for airport operation, including the employee recruitment.
Since KAC has been selected as the preferred bidder for the operation of Ecuador's Manta, Rata Kunga and Santa Rosa Airports in 2017, it has a high chance of winning the bid this time. If KAC operates Manta Airport for 30 years, it will be able to make US$580 million (about 678 billion won).