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Presentation onPresentation on Multi-Modal International Hub Airport Multi-Modal International Hub Airport

at Nagpur (MIHAN)at Nagpur (MIHAN)

Multi-Modal International Hub Airport at Nagpur

Does India need a Hub Airport????

How India compares with other neighbouring hub airport countries?

International Passengers in

Million

International Cargo in Lakh

tons

Country Airport

Country GDP

US $ Bn

Country Population in Million

Total Transit Total Transit India

Mumbai 1805 1014 5 Neg. 2.3 Neg.

Thailand

Bangkok 388 61 21.3 9.6 9 3.6

Malaysia

KAL 229 22 11 3.3 5 1.5

Hong Kong

Chek Lap Kok

160 7 33 NA 20 NA

Singapore

Changi 98 4.3 28.6 18.6 16.8 8.4

UAE

Dubai 54 24 10 5 5.4 3.8

UAE

Sharjah 54 1 7 5.2

ComparativeMovement ofPassengers in

the Region

Passenger Movements at Other Airports

0

5

10

15

20

25

30

35

1990 1992 1994 1996 1998 2000 2002

Passengers Bangkok Passengers Singapore

Passenger Bombay

Growth of Frieght at Other Airports

0

200000

400000

600000

800000

1000000

1200000

1400000

1600000

1800000

1990 1992 1994 1996 1998 2000 2002

Freight Singapore Freight Bangkok

Freight Shajah freight Bombay

Growth of Freight Trafficin the Region

India definitely needs a hub Airport

5 hours Flying zone

What are the stakes involved for India?

More than 70% of the world air travel is accounted by hub Airports in which 55% share is that of transit trafficShare of hub airports in total air traffic is increasingMuch smaller Countries in our neighborhood have stolen a march over usConsiderable future market might be lost if steps are not taken right nowA major opportunity for creating a hub is opening up in view of growing instability in Middle East. Traffic Shift from Dubai/ Sharjah on cardsEven at the current growth rates India needs at least 4 new large international airports of 20 million passenger capacity each in next 30 years , not to talk about additional potential on account of the transit traffic that may go a-begging

Why Nagpur as a hub Airport??Probably the best location from the point of view of setting a Multi modal Hub Airport in the country -Domestic and International. All existing Airports are constrained by various problemsWill require minimum gestation period due to existing operational Airport.Logistically well connected – Maximum rail connections, Major National Highway crossing – Figures in future express highway projectsAlmost 300 international flights over-flying City dailyMost conducive weather dynamics for air transportationWide catchment area spreading almost 500 kms.- accounting for 15% of country GDP and population.Large land availability near the existing Operational Airport. No constraints to growth

Existing Air routes - Nagpur

Existing Rail Routes - Nagpur

Existing Road Network - Nagpur

Moscow

Beijing

Tokyo

Buenos AiresJohannesburg

Los Angeles Miami

Singapore

Surabaya

London

Nagpur as potential International Hub Airport

• Located on important international air routes

• Rich hinterland and centrally located in India

• Availability of land, Govt. backing, other resources

• Attractive & impressive facilities to be developed

Influence Area – MIHAN as a Hub

MIHAN

Beijing

TokyoCairo

Dubai

Abu dhabi

Johannesburg

Colombo

Canberra

Singapore

Hong kong

Moscow

London

International Hubbing Concept

Europe- S.E Asia Europe- S. Pacific Africa- N.E Asia CIS- SE Asia Europe- South Asia NE/SE Asia- S Asia

Domestic Hubbing Concept

LOCATION OF EXISTING NAGPUR AIRPORT

MIHAN

What are the current Air traffic numbers at Nagpur??

All India Market

Market Domestic International Total

Air Passengers

(Millions)

27 13 40

Cargo (Tons) 2,70,000 5,30,000 8,00,000

Nagpur

Air Passengers

(Millions)

0.2 NA 0.2

Cargo (Tons) 830 80 910

Growth of Air traffic at Nagpur

Locational Advantages of NagpurMulti-modal Airport infrastructure and facility mixNagpur’s competitive advantage vis-à-vis other airportsAir Transportation Liberalization trendsIntensification of International TradeEconomic Activity in the catchment areaTourism Growth prospects in the region

Future Air Traffic All India vs NagpurAir Passengers- Million Nos.

Year 2000 2010 2030

India

40 85 282

Nagpur

0.2 2 14

% share Nagpur 0.5 2.2 5

Air Cargo- Tons

Year 2000 2010 2030

India 8,00,000 20,40,000 69,00,000

Nagpur 910 53,300 8,70,000

% share Nagpur

0.12 2.6 12.6

Source: TEFS conducted by Consortia of Consultants led by L&T Ramboll Consulting Engineers (MSRDC,2001)

Appreciation of Model Hub Airports abroad for preparing the

Master Plan

DubaiCopenhagenZurichAmsterdamLuxembourgHong KongSingaporeAnchorageFrankfurtCologne/BonnSharjah

DUBAI INTERNATIONAL AIRPORT - VIEW WHILE PROCEDING TO THE ARRIVALS AREA

DUBAI INTERNATIONAL AIRPORT - LARGE & AESTHETICALLY DESIGNED PASSPOST CONTROL AREA

DUBAI INTERNATIONAL AIRPORT - VIEW OF THE DUTY FREE SHOPPING AREA

DUBAI INTERNATIONAL AIRPORT - HOTEL ABOVE THE PASSENGER TERMINAL BUILDING

DUBAI INTERNATIONAL AIRPORT

- VIEW OF ONE OF THE CAFETARIA AS SEEN FROM THE DUBAI INTERNATIONAL HOTEL

Copenhagen International Airport

COPENHAGEN INTERNATIONAL AIRPORT- SECURITY CONTROL

COPENHAGEN INTERNATIONAL AIRPORT - AIRCRAFTS CONNECTED TO THE AEROBRIDGES ALONG ONE OF THE

PIERS

UNIQUE ZURICH AIRPORT

UNIQUE ZURICH AIRPORT - VIEW OF AIRSIDE APRON AND MID-FIELD TERMINAL UNDER

CONSTRUCTION

UNIQUE ZURICH AIRPORT - RETAIL ACTIVITY & REST PLACES IN TERMINAL ‘A’

SCHIPHOL INTERNATIONAL AIRPORT (AMSTERDAM)- VIEW OF THE CONTROL TOWER BEHIND ONE OF THE PIERS

LUXEMBOURG –DE– AIRPORT - FULLY COMPUTERIZED CARGO STACKING/ HANDLING SYSTEM

LUXEMBOURG –DE– AIRPORT - ORGANISING STANDARD PELLET LOADS IN CARGO TERMINAL

Flexible platform to facilitate tranfer of pellets onto the fork lift vehicles

Standard Pellet

LUXEMBOURG –DE– AIRPORT - CARGO BEING UNLOADED FROM THE TRUCK AT ONE OF THE 50+

TRUCKING BAYS AT THE CARGO TERMINAL

LUXEMBOURG –DE– AIRPORT - TRUCKS PARKED OUTSIDE THE CARGO TERMINAL

LUXEMBOURG –DE– AIRPORT - FULLY LOADED CARGOLUX PLANE

LUXEMBOURG –DE– AIRPORT - FULLY LOADED CARGOLUX PLANE IN FRONT OF THE CARGO

TERMINAL - READY TO TAKE-OFF

CHEP LEP KOK AIRPORT – HONG KONG

CHEP LEP KOK AIRPORT – AIRPORT EXPRESS TERMINAL STATION

AIRPORT EXPRESS STATION

CHEP LEP KOK AIRPORT – HONG KONG

BUS TERMINAL

CHEP LEP KOK AIRPORT – People Mover in Arrival Area

CHEP LEP KOK AIRPORT – Departure Lounge

CHEP LEP KOK AIRPORT – Departures Terminal

CHEP LEP KOK AIRPORT

SINGAPORE (Changi International Airport)– Arrival into Terminal 1

SINGAPORE (Changi International Airport)

SINGAPORE (Changi International Airport)

SINGAPORE (Changi International Airport)

MRT Systems connecting Airport

Baggage Handling Systems

Cargo Handling Systems

High Tech signage/Information system

Master Planof Multi-Modal International

Hub Airport at Nagpur

Area statement (Area in Ha)

International Flights to be able to take-off within 30 minutes of landing

A passenger will love to miss the first flight

Cargo to be dispatched within 12 hours of arrival

GUIDING PRINCIPLES FOR PLANNINGGUIDING PRINCIPLES FOR PLANNING

An attractive hub Airport

Financially viable bankable project

Minimum social and environmental

impact

Develop self-generating traffic

OBJECTIVESOBJECTIVES

Aerial view of Airport

AERIAL VIEW

AIRSIDE VIEW

Landside View - one module of the Terminal Building

Departure Floor

Pick Up and Set Down Area

MIHAN project area – 2535 HectaresRunways – Existing runway to be extended to 4000m length and 60m width; Provision made for an additional parallel runway 4000mx60mTerminal facilities: a semi-circular terminal building 3,00,000 sqm area with an outer diameter of 810m. Separate international and domestic cargo terminals.Aircraft Parking - 50 aircrafts in the Terminal & 50 aircrafts remote.Projected Traffic: 14 million passengers a year (70% international) and 8,70,000 tons of cargo (90% international) a year.Type of Airport – International Hub Airport for Passengers & CargoType of connectivity - Multi-Modal Airport, Railway Terminal for Passengers & Goods, Truck Terminal, MRTS Terminal all in one ProjectSpecial Economic Zone

SALIENT FEATURES OF THE PROJECTSALIENT FEATURES OF THE PROJECT

Easy access from National Highway, Railway routes and network of high capacity roads/ expressway and MRTS connecting Nagpur City and Butibori industrial estate.Special Economic Zone(SEZ) – entire MIHAN Complex to be declared as SEZContainer Terminal with Railway sidings - domestic & international Truck Terminal Freighter Village, warehousesAircraft Engineering Maintenance Base- Airline managed, Third Party managed

FACILITIESFACILITIES

Convention & Exhibition CentersValue-Added Commercial Services Complex - Repackaging, Distribution, Finance & banking institutions, Software Park, Insurance Park, etc.Passenger Amenities - Hotels, Restaurants, Duty free shopping CentersEntertainment Facilities- Multiplexes, Theme Park, Golf Course, Flying Club etc.Residential facilities for employees working in MIHAN Complex

FACILITIES ….contd., FACILITIES ….contd.,

SPECIAL ECONOMIC ZONE (SEZ)

Specifically delineated duty free enclave Deemed foreign territory for the purpose of trade operationsEnable international flights to land and take-off without any bilateral agreementsNot subject to any pre-determined value addition, export obligation, input output/wastage normsCan be set up in the private/ public/ joint sector or by the State GovernmentEligible for a number of fiscal concessions related to customs, excise and taxes No licensing requirements and ceiling on domestic sales

Various types of tax and duty concessions within SEZEfficient operating norms for the Airport-Aircraft turn-around time, Passenger walk-through time, cargo clearance time etc.All infrastructure facilities available - power , water, telecommunications, computer connectivity etc. Economic benefits to the Vidarbha Region and Nagpur City and the overall Country through the International and Domestic Hub.Development of Hinterland through multi-modal connectivity to the other parts of the Country.

MAJOR BENEFITSMAJOR BENEFITS

Economic Benefits

Increase in ExportsWealth CreationEmployment creationIncrease in revenues from touristsValue additionFiscal benefits to the Central and State Government

Economic & Fiscal BenefitsCumulative Net Economic Value Added to the region Rs. 522254 Million till 2035

Cumulative Additional Tourism Revenue due to MIHAN

Rs. 52620 Million till 2035

Cumulative Additional Exports due to MIHAN Rs. 54000 Million till 2035

Employment generated in airport, allied activities and tourism

94000 Jobs by 2035

Average Employment generated in construction activity 1.6 Million man-days per annum.

EIRR 33%

Fiscal Benefits

Cumulative fiscal benefits to State Government (sales tax, stamp duty, professional tax, turnover tax, etc.)

Rs. 10326 Million (till 2035)

Cumulative fiscal benefits to Central Government (income tax, excise duty, customs duty, airport taxes, etc.) with existing share of airport taxes

Rs. 31169 Million (till 2035)

Cumulative fiscal benefits to Central Government (income tax, excise duty, customs duty, airport taxes, etc.) with proposed share of airport taxes

Rs. 21689 Million (till 2035)

The total project cost is Rs.25810 million over 30 yearsThe total investment required in various facilities in the MIHAN Project area by other agencies is approximately Rs.26000 million till 2035The project is viable with an IRR of 15.8%The Net Economic Value added to the region till 2035 will be Rs.522,254 million, apart from the creation of thousands of jobsEmployment generated in airport, allied activities and tourism

FINANCIAL & ECONOMIC HIGHLIGHTSFINANCIAL & ECONOMIC HIGHLIGHTS

Capital Cost of the Project (2002 prices in Rs. Millions)

Classification 2002 - 06 2007 -15 2016 - 25 2026 - 35 Total

Movement Area (Runways) 769 787 484 452 2492

Terminal Complex 3208 2210 3443 2743 11604

Flight Control 562 60 60 60 742

Utilities 275 125 135 144 679

Pre-operational, temp. works & tests 590 - - - 590

Contingencies 303 385 432 348 1468

Design & project supervision 146 92 92 84 414

MIHAN roads & infrastructure 800 735 400 64 1999

Other MIHAN costs(rail, cargo, green belt, SEZ fence etc)

788 2 222 - 1013

Contribution towards off site infrastructure 1200 - - - 1200

Reconstruction of shifted airforce building 150 - - - 150

Contribution to MRTS - 1000 - - 1000

Land acquisition & resettlement 2460 - - - 2460

Total 11251 5396 5268 3894 25810

IMPORTANT KEY DRIVERSIMPORTANT KEY DRIVERS

Formation of a dedicated SPV for implementationDeclaration of entire Airport complex as SEZAviation policy issues- favourable decision at an early dateTaxes & other concessions, early approvals from GOM, GOIOperations by a strong O & M agencyGOM drive for development of Vidarbha Region and Nagpur City for improvement of O-D trafficDrive to improve tourism potentialTransfer of land and Airport assets to SPV at an early dateDevelopment of a strong Home Carrier for the development of Hub Traffic

ORGANISATION STRUCTURE PROPOSED

& NIT

Financing StructureEntirely through Bonds raised by the JV as in the case of other projects successfully implemented by MSRDCPublic-Private Partnership (PPP) with equity from govt. agencies Sources for Raising funds: Privately placed bonds with institutions Long-term debt from domestic Financial

Institutions such as HUDCO, IDBI, ICICI, etc. Assistance from Multilateral Agencies

Status of the ProjectTechno-Economic Feasibility Report submitted, presented in various forums and approved by State Cabinet

Project approved by the Govt. of Maharashtra

Field work – completed Topographic Surveys, Soil investi-gation, collection of land records, environ & social surveysApprovals of Govt. of India requestedDeclaring Nagpur Airport as a International Gateway

AirportDeclaring MIHAN area as SEZTransferring of existing Airport to MADC

Formation of Special Purpose Company, Maharashtra Airport Development Company (MADC) taken up

MSRDC to be declared as Special Planning Authority for MIHAN notified area.Government of Maharashtra to set up a Special Purpose Company - Maharashtra Airport Development Company with MSRDC in lead for speedier implementation of the MIHAN project. Equity participation in the SPV from govt. agencies – MSRDC, CIDCO, NIT, MIDC, CONCOR, AAI, etc. & FIs.MADC to implement the project with private participation (Developers/Operators, Airlines, Logistics Providers etc.) by forming project specific SPV (NAC - Nagpur Airport Company).First phase of the Project to be commissioned by 2005

IMPLEMENTATION PLANIMPLEMENTATION PLAN