Acsa to roll out R19bn upgrade for SA airport infrastructure

Posted On Friday, 17 August 2007 02:00 Published by eProp Commercial Property News
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Airports Company SA (Acsa) said yesterday that it would spend R19,3bn over the next five years to expand the capacity of its airport infrastructure.

Jeff RadebeMore than half of the capital investment would be used on the construction of a new terminal building at the OR Tambo International Airport.

Speaking at the release of Acsa’s financial results for the year ended March, Acsa CEO Monhla Hlahla said a further R5,8bn would be used to build a new airport in Durban.

The airport, which would form part of the proposed Dube Tradeport industrial development zone, would replace the current Durban International Airport. It would be located at the La Mercy site, about 25km north of Durban.

The outcome of the environmental impact assessment study for the project was expected in the next 10 days.

Acsa said a new double-storey terminal building would also be built in Cape Town to accommodate growing passenger volumes.

Hlahla said Acsa had registered a R12bn bond to help it fund part of the planned capital investment programme. The remainder would come from the company’s cash flows.

Acsa would spend more than R4bn a year from this year until 2010. It spent R1,7bn in the year under review.

Hlahla said the company posted “pleasing results”, with revenue up 18% to R2,6bn from R2,2bn previously.

It recorded a 61,6% increase in operating profits of smaller national airports. Small airports, which include the Durban, Bloemfontein, Kimberley, Port Elizabeth and East London airports, collectively contributed R80m to revenue.

The Bloemfontein airport was the fastest growing airport at an average growth rate of 42%, mainly due to the entrance of low-cost airlines Mango and 1time on that route. The airport handled more than 464000 passengers although it was built for a capacity of 360000.

Transport Minister Jeff Radebe said: “It should be clear that entire network has experienced good growth in the year under review, confirming that the challenge to us as a ministry and the department of transport and Acsa is how we provide infrastructure sustainably and timely throughout the network.

“We need to meet this real demand, which is clearly beyond the requirements of the 2010 soccer World Cup, while maintaining Acsa’s and the broader aviation industry’s economic viability.”

Acsa said it was considering increasing the capacity of all smaller national airports to cater for the projected passenger growth.

Net profit for the year was R663,6m compared with R621m previously.

“Once again, Acsa has delivered exceptionally strong operational and financial results on the back of a buoyant aviation sector, which is nurtured by a growing national economy where levels of consumer spending continue the strong upward trend evident in the past 14 years,” said Hlahla.

Outgoing financial director Brooks Mparutsa said the company’s non-aeronautical business had contributed 46,3% to the parastatal’s total revenue.

The biggest growth came from retail and car parking operations, with revenue up 30,6% and 20% respectively. Revenue from property rental increased 18%.

 

Last modified on Saturday, 02 November 2013 11:15

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