Acsa commits R3.8bn to its upgrade plan.

Posted On Thursday, 17 July 2003 02:00 Published by eProp Commercial Property News
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The Airports Company SA (Acsa) would spend R3.8 billion upgrading terminals, runways, and security and rescue services at its 10 local airports, chief executive Monhla Hlahla said yesterday.

Infrastructure IndustryThe Airports Company SA (Acsa) would spend R3.8 billion upgrading terminals, runways, and security and rescue services at its 10 local airports, chief executive Monhla Hlahla said yesterday.

At the release of Acsa's 2002/03 results, Hlahla said that between the 2004/05 and 2008/09 financial years, R1.4 billion would be spent on terminals; R952 million on runways, taxiways and aprons; R209 million on upgrading security; and R66 million on fire and rescue buildings.

Acsa's airports have had a dramatic increase in the number of aircraft landings and passengers. The upgrades are needed not only to deal with these increased volumes but also to match the service levels of similar-sized airports abroad.

Since 1999, the number of aircraft landings has increased from 187 423 to 217 827 and the number of departing passengers from 9 514 to 11 078.

The number of passengers increased by 9 percent last year alone as a result of the World Summit on Sustainable Development, the launch of the African Union and the cricket World Cup.

Acsa's airports are benchmarked internationally. Last year Durban was rated the runner-up best domestic airport in the world in the International Air Transport Association's Global Service rankings.

Acsa finance and corporate services executive director Wallace Holmes said the capital expenditure would be funded mainly from internal cash flows.

Hlahla said Johannesburg International Airport would get a new international terminal pier and a central terminal building. Its apron would be extended, a high-speed exit taxiway built and its runways and taxiways refurbished.

Cape Town would get a new domestic terminal and parallel taxiway, apron extensions and a high-speed exit taxiway.

George, Bloemfontein and Upington would have their terminals extended and their runways and taxiways refurbished. Durban's apron would be reconfigured.

Security perimeter fences, access gates and equipment would be upgraded or replaced at all airports, with Johannesburg, Cape Town, Durban and Port Elizabeth in line for security control systems and CCTV upgrades.

Several airports would also get new fire and rescue vehicles.

Hlahla said the 2002/3 financial results - which showed rises in revenues of 19 percent, operating profit 28 percent, headline earnings a share 32 percent and operating cash flow 34 percent - were because "we have to consistently raise the bar by looking for better ways of doing things".

And the strategy appears to be showing results.

According to the financial statements, since 1999 the number of employees has remained relatively constant (increasing from 1 756 to 1 797) but revenue per employee has increased by 83 percent to R884 177; operating income per employee has shot up 98 percent and the number of departing passengers per employee has gone from 5 418 to 6 165.

The new capital projects will come on top of the recently completed domestic terminal building at Johannesburg International and the new international departures terminal at Cape Town.

In the financial year to March, Acsa had capital expenditure of R870 million, up from R552 million the year before.

Acsa has spent more than R500 million on capital expenditure (capex) every year since 2000.

In its first three years as a corporate entity - 1995 to 1997 - it spent less than R200 million a year on capex.

Apart from increasing the capacity of local airports, Acsa has also gone international: its consulting arm, Airport Management Solutions, has done work in eight Southern African Development Community countries.

It has bid for a 15-year build, operate and transfer concession for the Maputo airport in Mozambique and is in talks with the main concessionaire of Lagos Airport in Nigeria to acquire the rights to manage, operate and maintain the airport.

Airport Management Solutions head François Swanepoel said the results of the talks on the Maputo and Lagos airports were imminent.

 

Last modified on Tuesday, 05 November 2013 18:44

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