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A C S A

2 www.southafricamag.com

ACSA does not only provide airlines with world-class, secure infrastructure - it also promotes tourism, economic growth and job creation.

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3www.southafricamag.com

aCSa FEATURE

Depending on which figures you believe, before the global economic downturn, the airline sector in Africa was expected

to grow 5-6 percent per year over a 20-year period. As the globe recovers from the downturn, things are picking up in the airline sector. The International Air Transport

Association (IATA) reported full-year 2010 demand statistics for international scheduled air traffic that showed an 8.2 percent increase in the passenger business and a 20.6 percent increase in freight. Demand growth outstripped capacity increases of 4.4 percent for passenger and 8.9 percent for cargo. Average passenger load factor for the year was 78.4 percent, which is a 2.7 percentage point improvement on 2009. The freight load factor saw a 5.2 percentage point improvement to 53.8 percent.

Compared to the pre-recession levels of early 2008, December air travel volumes were four percent higher. Airfreight was one percent higher than pre-

recession levels; however volumes have fallen five percent since the peak of the post-recession inventory re-stocking boom in early 2010.

“The world is moving again. After the biggest demand decline in the history of aviation in 2009, people started to travel and do business again in 2010. Airlines ended the year slightly ahead of early 2008 volumes, but with a pathetic 2.7 percent profit margin. The challenge is to turn the demand for mobility into sustainable profits,” said Giovanni Bisignani, IATA’s Director General and CEO.

African carriers experienced a sharp rebound of nearly 12.9 percent in 2010,

The year under review ended on a high note with the successful

completion of the major expansions

at OR Tambo and Cape Town

International Airports

although load factors remained well below the industry average, at 69.1 percent. Their year ended with December demand at 11.7 percent above previous year levels.

So there is obvious potential. Grabbing it with both hands is a little tougher.

Airports Company South Africa (ACSA) has been in existence since 1993 and has succeeded in transforming once fragmented assets into a world-class, profitable state-owned company that is – they proudly say - “run along commercial lines”.

Its vision is to provide a “gateway to Africa” and ACSA has just completed its most ambitious infrastructure capacity development programme ever. Five years ago, it embarked on an ambitious R17 billion programme, which would generally improve capacity and service offerings at its network of airports to match forecast passenger growth.

A new R2.2 billion Central Terminal Building at OR Tambo International Airport was one of the major investments. ACSA calls it “the final building block” in a complete redevelopment of the terminal precinct that was commenced more than 10 years ago. “The building finally brings all the domestic and international areas into one contiguous space, which greatly improves passenger experience and


aCSa FEATURE

StaNDarD BaNKStandard Bank Group supports the airports Company of South africa’s (aCSa) vision of providing the gateway to africa and is proud to have been able to partner with aCSa in two financial deals.

In 2007, Standard Bank was the joint lead manager in a r2 billion bond issue to raise capital for airport expansion. that same year, Standard Bank was joint arranger of a r12 billion domestic medium-term note programme. the capital was used to upgrade two major international airports (or tambo and Cape town) and construct the new King Shaka International airport in KZN.

HELPBUSINESS

IN

LET’S

to

Corporate and Investment Banking We support the Airports Company of South Africa’s (ACSA)

vision of being a gateway to Africa. That’s why we wereinvolved in ACSA’s DMTN programme, were lead manager onits first bond issue and assisted in issuing its commercial paper.

Visit www.standardbank.com

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Authorised financial services and registered credit provider (NCRCP15)The Standard Bank of South Africa Limited (Reg. No. 1962/000738/06). SBSA 77309 02/11

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aCSa FEATURE


orientation,” ACSA says. “This flagship of OR Tambo International Airport is complemented with recently completed pier and apron developments that allow us to accommodate new generation large aircraft.”

The terminal precinct at Cape Town International Airport has also undergone a complete transformation. “By April 2010, the redeveloped airport boasted a common use central terminal with vastly improved retail and food and beverage offer, an additional 4,000 bays in a second parkade as well as a significantly improved road network,” ACSA says. “A first for this airport is the introduction of an elevated

drop-off kerb, which allows passengers to access the check-in hall with greatly improved ease and protection from the elements.”

Of course, we couldn’t mention ACSA without saying something about the new R6.8 billion King Shaka International Airport, which started operating last May, or indeed the work it has done in improving the

smaller airports in the airport network. “The successful move to the new airport is a huge accomplishment, not only for the airport community here, but the country at large. It makes all of us proud to stand here today and

The smaller airports in the

airport network are not neglected as they are seen as

an integral part of the overall aviation

network

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aCSa FEATURE

report that the airport is running smoothly,” said the King Shaka International Airport’s general manager, Terence Delomoney, on the airport’s opening.

“The smaller airports in the airport network are not neglected as they are seen as an integral part of the overall aviation network,” ACSA says. “ACSA has completed runway revamp and terminal expansion at Bloemfontein International, a terminal upgrade at East London, runway refurbishment at Port Elizabeth, as well as terminal upgrades and expansions at Kimberley and Upington.”

Airports and infrastructure growth play critical roles in the national economy. They plan a big part in President Zuma’s vision for South Africa. A recent survey by the University of Johannesburg showed that the economic impact of OR Tambo, Cape

Town and Durban international airports was significant, with a combined contribution towards GDP of R85 billion. Impressively, the three airports generated 33,700 direct, on-airport jobs and 227,600 indirect jobs.

Sunday 7 November 2010 marked one year since Airports Company South Africa, Cape Town International Airport opened its doors to the new central terminal building.

Since then, the airport has processed over seven million passengers and seen 43,222 aircraft departures.

The central terminal building’s consolidated Domestic and International check-in area was a first for the airport. Another first was the consolidated security screening point allowing the airport to derive “greater efficiencies”. Through the airport’s expansion programme other firsts included the elevated roadway,


STS Engineering a level 2 BEE rated company was established in1999 by a group of

professionals, specializing in mechanical and structural engineering projects with special emphasis on architectural and space frame

structures.

STS Engineering recently completed its work at the King Shaka International Airport and is currently constructing the Dube Square Canopy to be located in the precinct of the Dube Trade Port headquarters. The project consortium includes Civil and Structural Engineers, Mark Mallin and Henry Fagan of Henry Fagan & Partners and landscape architect Tanya De Villiers of CNdV.

Our specialised areas of business are as follows:• Project Management• Pipelines• Engineering Services• Steam, Water, Gas Lines• Mechanical Steelwork

• Specialised Welding• Steel Fabrications

• Security System

Please visit our website for moreinformation on completed projects.

www.stseng.co.za

P O Box 21768, Bluff, 4036

South Africa

Sagren Naidoo, the company director can be contacted on:

Cell: 0837015907 Fax: 0866843602 Email: [email protected]

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aCSa FEATURE

transport plaza, parkade with 4,000 parking bays - double the size of the first one - and eight new air bridges for use by Domestic passengers.

With the new terminal also came a new automated baggage system which has already processed 2,972, 902 pieces of luggage!

The airport has just come through its peak season.

“The opening of the central terminal building last year was a proud moment for all airport employees, but it was also a proud moment for Cape Town. It brought

with it much needed additional capacity. It offers ample space, wonderful retail facilities and it’s functional. Many Capetonians heaved a sigh of relief when they moved through it for the first time,” said Deidre Hendricks, Communications Manager, Cape Town International Airport.

During the World Cup, Cape Town airport handled approximately 23,000 passengers per day.

The airport’s busiest day was 7 July, where just under 27,000 passengers were processed.

ACSA operates South Africa’s 10 principal airports, providing airlines with world-class, secure infrastructure.

“Our mission is to manage world-class airports for the benefit of all stakeholders,” ACSA says. “Our vision is to be a world-leading airport business.”

“Airports Company South Africa has a wonderful basket of world-class assets, and a high level of intellectual capital, through


The opening of the central terminal

building last year was a proud

moment for all airport employees, but it was also a

proud moment for Cape Town

SecuringYour

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PROVIDING GLOBAL AVIATION SOLUTIONS THAT ENSURE THE SAFE TRANSPORTATION OF AIR TRAVELLERS AND CARGO WORLDWIDE

Living with the ever present risk of security attacks by terrorists and extremists is just one of many challenges facing the aviation industry in the 21st century. G4S security personnel at airports receive high level training to satisfy the constantly changing aviation legislation whilst we strive to maintain an evolving range of new security technology.

G4S, the leading global provider of secure solutions, is well established as a major partner in the aviation industry – we provide services at 61 airports and 81 airlines in 49 countries around the world. Our emphasis is always on providing solutions which improve security but do not inhibit the flow of a growing number of airline passengers.

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Stylecraft Offi ce Design is proud to be associated with ACSA on the completion of the new King Shaka International Airport.

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aCSa FEATURE


a competent Board and an enthusiastic management team that is instilling a fresh spirit of excitement. I am therefore confident in ACSA’s ability to optimally sweat these assets in future, in order to deliver a reasonable commercial return to our shareholders,” Sindi Zilwa, ACSA Chairman said in the company’s 2010 annual report.

“The year under review ended on a high note with the successful completion of the major expansions at OR Tambo and Cape Town International Airports, as well as the refurbishment and expansion of the smaller national airports and completion of the greenfield King Shaka International Airport… It has, however, been a demanding year with incredibly tight deadlines for infrastructure delivery, and I would like to express my profound gratitude to all ACSA management and staff, as well as key stakeholders and business partners,” added Monhla Hlahla,

INtelleParKIntellePark’s relationship with King Shaka International airport began almost four years ago when we were appointed by the Ilembe consortium and their electronic services subcontractor thales Italy in cooperation with alCatel lucent in Durban.

the aSYteC product from Germany is IntellePark’s flagship Pay on foot system. our system that was installed has been proven in the overseas and South african markets as being reliable and accurate. a similar system has been installed at the lanseria airport and frankfurt international airport, with frankfurt being aSYteC’s largest Pay on foot site in the world.

the King Shaka International airport is an extremely important installation for Intellepark, its Directors, management team and staff and we look forward to a long lasting relationship with the aCSa management team and their operational staff members.

Office number (011)394-5730 Cell 071 114 4244

aCSa FEATURE

Managing Director. “The African continent remains a critical market for ACSA to expand its services and grow traffic by ensuring easier travel within the continent. While Europe and North America remain attractive markets that require deepening, ACSA will also explore traffic growth opportunities by leveraging the South-South partnership between South Africa, Brazil, India and China,” she continued.

ACSA’s airports are undoubtedly some of the very best platforms to showcase Africa’s excellent craftwork to international visitors, she said, and ACSA is committed to uplifting the community.

ACSA views B-BBEE and the need to transform the South African economy seriously. It has set some rigorous targets for preferential procurement and enterprise development programmes amongst others.


FACT BOX

Airport Statistics

Cape Town InternationalDeparting passengers 3,912,000Arriving air traffic movements 46,302Annual passenger handling capacity 14,000,000

Durban InternationalDeparting passengers 2,208,000Arriving air traffic movements 26,454Annual passenger handling capacity 4,500,000

Port Elizabeth InternationalDeparting passengers 676,000Arriving air traffic movements 39,169Annual passenger handling capacity 2,000,000

East London AirportDeparting passengers 337,000Arriving air traffic movements 17,930Annual passenger handling capacity 1,200,000

Bloemfontein InternationalDeparting passengers 199,000Arriving air traffic movements 11,362Annual passenger handling capacity 600,000

George AirportDeparting passengers 270,000Arriving air traffic movements 20,931Annual passenger handling capacity 900,000

Upington InternationalDeparting passengers 21,000Arriving air traffic movements 3,395Annual passenger handling capacity 100,000

Kimberley AirportDeparting passengers 66,000Arriving air traffic movements 5,980Annual passenger handling capacity 200,000

SOURCE: ACSA 2010 Annual Report

Windhoek Port ElizabethRichards BayWalvis Bay

Kimberley Kruger Mpumalanga (Nelspruit)

MaputoLubumbashi

Johannesburg GaboroneGeorgeHoedspruit

Bloemfontein East LondonDurbanCape Town

Image Credits: Johannesburg - Gauteng Film Commission. Durban, East London, Kimberley, Port Elizabeth, Richards Bay, Nelspruit - Wikimedia Commons

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FACT BOX

etHIoPIaN aIrlINeS

Ethiopian Airlines, one of the largest and fastest growing airlines in Africa, made its maiden flight to Cairo in 1946. With the addition of flight services to Maputo and Bangui, Ethiopian provides dependable services to 39 cities in Africa and a total of 60 international destinations spanning four continents.

Ethiopian won the NEPAD Transport Infrastructure Excellence Awards 2009 and the 2009 “Airline of the Year” award from the African Airlines Association (AFRAA). In August, 2008, Ethiopian won “the 2008 Corporate Achievement Award” of Aviation & Allied Business for setting the pace towards the development and growth of the African aviation industry. Ethiopian is also the first African carrier to win the 2008 Brussels Airport Company Award in recognition of its distinguished long haul operations witnessed through the introduction of new routes, new products, and close cooperation with Brussels Airport in marketing activities.

aCSa FEATURE

“The Group has intensified implementation of B-BBEE and now requires any potential service provider to have a minimum Level 4 accreditation status on B-BBEE, as required by the Codes of Good Practice issued by the Department of Trade and Industry,” said Monhla Hlahla.

ACSA actively encourages all its contractors and suppliers to use small- to medium-sized enterprises and women-owned organisations in delivering goods and services. The Group achieved a Level 3 B-BBEE contributor status, which means that ACSA has exceeded its Level 4 target and accomplished a recognition level of 110 percent for every Rand spent.

It distributed R24.3 million through Corporate Social Investment (CSI) projects

during 2009/10, which is remarkable given that it was a difficult trading period, which was characterised by a decline in passenger numbers, inflationary pressures, increases in operating requirements associated with the new infrastructure, 2010 FIFA World Cup operational readiness, reduced liquidity and increases in borrowing costs.

Looking to the future, the new infrastructure provides a platform to grow revenues. The negative pressures on aviation and travel have started to ease and, as the globe returns to something resembling economic ‘normality’, things look good for ACSA.

To learn more about ACSA visit www.acsa.co.za. eND


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