the effective development of privatised infrastructure · shanghai, tokyo & more broadly india...
TRANSCRIPT
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The Effective Development of
Privatised Infrastructure
Presented by:
Tony Brun
Chief Strategy Officer, Perth Airport
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Who is Perth Airport?
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• Airport land owned by Commonwealth
of Australia
• 50 year (+49 year option) lease sold to
Perth Airport Pty Ltd [formerly
Westralia Airports Corporation] on 1
June 1997
• Commonwealth oversight through the
Airports Act 1996
o Master Plan every 5 years
o Major Development Plans (MDP)
the approval process for relevant
major proposals
o Australian Noise Exposure Forecast
(ANEF)
Perth AirportOwnership
Utilities Trust of Australia (Hastings)
39%
Future Fund30%
Perth Airport Property Fund (Hastings)
17%
The Infrastructure Fund4%
Australian Super5%
Commonwealth Bank Group Super
3% Sunsuper2%
85% of shareholding held on
behalf of Australian
Superannuation, pension funds
and future savings funds
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• 2,105 hectares – one of the largest land
owners in the Perth metropolitan area
• Strategic location at the core of the Eastern
Metropolitan Region
• At the centre of the emerging Tonkin Highway
north-south freeway spine
• Principal employment centre for the eastern
half of Perth
• Good access to Port and related logistics
infrastructure
Long Term Regional Context
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Economic Benefits
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• Passenger numbers increase from 4.5 million to 14
million per annum
• International flights per week up from 90 to over 270
• Highest percentage in the Australian major airports of
• international aircraft movements at 25%
• low cost international carrier movement at 33.5%
• foreign airline movements at 85.3%
• Strongly international credentials growing
• with London service starting March 2018, and
• focussed on growing further with direct to
Shanghai, Tokyo & more broadly India
Key Outcomes as an International AirportGrowing the base
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Privatisation
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Perth Airport Transition to Privatisation
• Pre 1988
• Airports run by the Commonwealth
• Origins from military aviation
• Public servant culture
• Highly controlled
• Pricing environment general CPI plus
• New infrastructure funded by Commonwealth appropriation
Dep. of Civil Aviation
Federal Airport Corp
PrivatisationAnsett
CollapsePrice
Deregulation
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Perth Airport Transition to Privatisation
• 1988 – 1996
• Airports still run by the Commonwealth
• Applied principles of commercialisation
• Still reflected origins from military aviation and public service culture
• Still highly controlled
• Pricing environment CPI plus
• New infrastructure funded by Commonwealth appropriation
• Domestic airlines control terminals via long term ground leases
• Compulsory Superannuation begins 1993
Dep. of Civil Aviation
Federal Airport Corp
PrivatisationAnsett
CollapsePrice
Deregulation
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Perth Airport Transition to Privatisation
• 1996 – 2001
• Airports regulated by the Commonwealth
• FAC broken up and each airport sold to private group
• Price set by ACCC
• Pricing environment CPI plus
• No incentive to invest in capital
• New entities only controlled airfield, parking and international terminal
• Domestic airlines control terminals via long term ground leases
Dep. of Civil Aviation
Federal Airport Corp
PrivatisationAnsett
CollapsePrice
Deregulation
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Perth Airport Transition to Privatisation
• 2001
• Ansett Collapses
• Administrator sells terminal lease back to airports to raise cash
• Airports finally have ability to manage full airport process chain (roads, parking,
terminals and airfield) in Perth T3 only
• Qantas retains its terminal lease til 2018
• Price set by ACCC
• Pricing environment CPI plus
• No incentive to invest in capital
Dep. of Civil Aviation
Federal Airport Corp
PrivatisationAnsett
CollapsePrice
Deregulation
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Perth Airport Transition to Privatisation
• 2002 - Productivity Commission recommends Price Deregulation
• 2003 – Government applies Price Deregulation
• Price monitoring only for 4 major airports
• New regime o allows Airports and Airlines to negotiate pricing
o encourages infrastructure investment for first time
• Superannuation Funds reach a new level of scaleo Strong alignment with infrastructure assets
o Capital for asset investment
o Long term returns
Dep. of Civil Aviation
Federal Airport Corp
PrivatisationAnsett
CollapsePrice
Deregulation
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• Secure and well understood
regulatory environment through the
Airports Act 1996
• Secure Airport tenure with 49 year
plus 50 year option on land
• Airlines effectively fund the cash-
flow through a passenger charge
• Airports fund capital investment
• Long term secure revenue nature is
well suited to Superannuation
funds
Perth Airport Transition to PrivatisationThe Airports Framework Today
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• Completion of the $1 billion
transform initiative 2008-2015
undertaken without any
government support
o Terminal 2 (regional services)
o Terminal 1 Domestic (new Virgin Pier)
o International Arrivals and Departures
Upgrade Project
• Alignment between investors and
operational needs
• Effective long term strategy and
planning
20 Years LaterA success story
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Airport Planning
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Back Casting to the Future
Define ultimate airport
End of lease – 2097
Investment horizon 2070-80
475,000 aircraft movements
70 million passengers
Back Cast
Work back from ultimate
Define 20 year interviews back to today
Set Master Plan
Set land use plan and vision on 20 year horizon
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New Domestic Terminal
International Expansion
New Multi-Storey Car Parks
T1DT1
Rail Station and walkway Operational
Arrivals Pop-out
Hotel
New Runway Project Approval 2019
Operational 2023 - 2028
Back Casting to the Future
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Commercial Planning & Development
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• The integration of Conservation
Precincts (previously referred to as
Precincts 5 and 7) into 5 new
precincts:
o Airfield Precinct
o Airport Central Precinct
o Airport North Precinct
o Airport West Precinct
o Airport South Precinct
• The timing of the New Runway
Master Planning evolution2009MP vs 2014MP
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• 5 Precincts compared to the former 7
• Clear plan for new airfield
infrastructure
• Protection of airspace and update
Aircraft Noise Exposure Forecast
(ANEF)
• Application of Commonwealth
Environmental Offsets Policy 2012
What does it mean for
Perth Airport
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• Airport West off the new Dunreath
Interchange
• Airport South off Horrie Miller Drive
• Airport North focused on the
Kalamunda Road spine
Commercial Master Plan
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342 hectares
• Aviation Support facilities including
o General Aviation operators,
o maintenance hangar facilities for the
general aviation operators
• Car parking for general aviation
passengers and staff
• Limited office, retail and bulky goods
Airport West
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325 hectares
• Takes advantage of the large flat
sites available and major road freight
access
• Presents an opportunity for aviation
related development, with direct
apron frontage available for some
sites
Airport North
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235 hectares
• To provide for a range of aviation and
non-aviation uses, with a focus
logistics and distribution facilities
Airport South
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Valuable LandLand Available by Precinct
227 hectares
Airport North92 hecares
Airport Central
76 hectares
Airport South
113 hectares
Airport West
15%
45% 18%
22%
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Questions