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INDIAN AIRPORTS - A LEAP FORWARD

V K KALRAEXECUTIVE DIRECTOR(Key Infrastructure Development), AAI

MUMBAI

25.01.2008

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Indian Airports 449 airports/airstrips

16 International, 7 Customs Airports

AAI manages 128 airports (90 operational)

28 civil enclaves in defence airfields

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Growth in Aviation Sector Impressive growth in air traffic

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

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 airportinfrastructure

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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 onpassengers

Ultimately the consumer and economy pays

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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 metroairports by AAI

Promote greenfield private airports: Bangalore andHyderabad airports through PPP route

Upgrade CNS equipment and ATC services

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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

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Status of airport development Delhi and Mumbai

transferred to the JV Partner in May, 2006.

Phase I to be completed by 2010

Hyderabad and Bangalore To be commissioned in March 08.

Kolkatta and Chennai Planned to be completed by 2010

35 non metro airports 24 to be completed by 2009

11 to be completed by 2010

Navi Mumbai, Mopa and Kunnur airports In-principle approval granted

Several new proposals on the anvil

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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

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New initiatives Develop tourist circuits

Use existing air strips

Enable setting up of Private airports Policy on the anvil

Promote low cost airports

Standardisation of bidding process

Airport Regulation Setting up of independent regulator

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

Share from

JVCs

499

13%

Cargo

170

5%

PSF

560

15%

Traffic

1646

44%

Non-Traffic

851

23%

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Importance of Air Cargo Air cargo remains a vital mode of transport for

Indias international trade especially for productswith high value or value addition.

The five major airports (Mumbai, Delhi,Kolkatta, Chennai and Bangalore) account foraround 88% of the total air cargo handled in India.

Need to have a well networked air cargo systemto connect far flung areas and providing access tonew markets

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Infrastructure ChallengesInfrastructure constraints due to limited air cargoprocessing space . In addition, remedial actions are also required for thefollowing issues in the air cargo complexes

inadequate material handling equipment slow retrieval of cargo from the storage warehouse to the customsclearance, poor quality of the warehousing facilities, inadequate maintenance and up gradation of supportinfrastructure, lack of an efficient Electronic Data Interchange (EDI) system and Preparing for a competitive environment and brushingaside monopolistic regime. Inadequate cold storage facilities

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Other Challenges Cumbersome Procedures and Delays related

to numerous clearances-need forsimplification

Lack of modern technology / systems in thework place.

Lack of adoption of operational andprocessing methods

Diminishing Returns to all players in Industry.

Increased supply chain reliability , speed &visibility.

Ever increasing cost of operations.

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Initiatives Encouragement of private sector in order to

bridge the resource gap as well as to bring

greater efficiency .

Development and up gradation of non-

metro 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.

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Cargo Operation at Delhi andMumbai Airports

Entrusted to Developers

Developer to Maintain competitiveenvironment

Service Level

Average Dwell Time defined in OMDA

Quality Standards of facilities Contemporary prevailing standards at topfive international airports in South Asia

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Cargo Operations Non-Metro

Airports Development, Management and Operation through

PPP

Intention

o Provide Air Cargo processing facilities

o Comply with IATA recommendationso Efficiency

o Broad based Approach

o Loose Shipments

o Containerized Shipmentso Perishables

o Express Shipment

o Dangerous goods

o Precious Cargo

o Usher better mana ement skills and levera e Cit Side

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Cargo Operations Non-Metro 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

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Define PerformanceStandards

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

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THANK YOU

V. K . KALRA

vkalra.in@gmail.com

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Ahmedabad

Estimated Cost Rs.348 cr.

Completion: Dec. 07 (Domestic)

Feb. 09 ( International)

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Amritsar

Estimated Cost Rs.80 Cr.

Completion Dec. 07

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Bhubaneswar

Estimated Cost Rs.140 cr.

Completion June 09

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Calicut

Estimated Cost Rs.90 cr.

Completion Sep. 07

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Dibrugarh

Estimated Cost Rs.54 cr.

Completion Sep. 07

Jaipur

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Jaipur

Estimated Cost Rs.95 cr.

Completion: Oct. 07 (International)

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Mangalore

Estimated Cost Rs.132 cr.

Completion Dec. 08

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Nagpur

Estimated Cost Rs.77cr.

Completion Sep. 07

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Srinagar

Estimated Cost Rs.78 cr.

Completion Sep.07

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Trivandrum

Estimated Cost Rs.245 cr.

Completion: International Terminal

Ph-I Dec.08

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Varanasi

Estimated Cost Rs.94 cr.

Completion Dec. 08

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Vizag

Estimated Cost Rs.95 cr.

Completion Oct. 07

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Glass and Steel Structures-the Future airports

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Glimpses of few upcomingAirport Terminals

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Srinagar

Ranchi

Surat Varansi

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Ahmedabad

Visakhapatnam

Jaipur Trivandrum

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Khajuraho

Dibrugarh

Udaipur Amritsar

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Calicut

Trichy