A-Port SC Infra Summit Santiago Final

8/6/2019 A-Port SC Infra Summit Santiago Final

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Brazilian Airports:

Challenges and Opportunities Related to

FIFA World Cup 2014 and Olympic Games 2016

Southern Cone Infrastructure Summit

Santiago, Chile

October, 2010


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Introduction: A-port


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Who we are

Brazilian company

Camargo Corra, Zurich Airport, IDC

Develop, invest and operate airports

Latin America and the Caribbean

Concessions, PPP, Greenfield, M&A

Operations in 5 countries

Presence in 10 airports

16 mmppa under management

1.1 million cars/year (parking)


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Chile

Airport: El Tepual (PMC), in Puerto Montt

Passengers: 803,000 (2009)

A-port: Shareholder (33,4%) and O&M

Airport: La Florida (LSC), in La Serena

Passengers: 318,000 (2009)

A-port: Shareholder (100%) and O&M

Airport: El Loa (CJC), in Calama

Passengers: 473,000 (2009)



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Colombia

Airport: El Dorado (BOG), in Bogot

Concessionaire: Opain S.A.

Passengers: 11,175,000 (2009)

A-port: Technical Services Agreement


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Curaao

Airport: Hato International Airport (CUR)

Passengers: 1,364,000 (2009)



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Honduras

Airport: Toncontn (TGU), in Tegucigalpa

Passengers: 421,000 (2009)

Airport: Ramn Morales (SAP), San Pedro Sula

Passengers: 697,000 (2009)

Airport: Goloson (LCE), in La Ceiba

Passengers: 171,000 (2009)

Airport: Juan Manuel Galvez (RTB), in Roatn

Passengers: 172,000 (2009)

Concessionaire: Interairports S.A.

A-port: Technical Services Agreement


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Brazil

Asset: Car Parking at Congonhas Airport, So Paulo

Cars: 1,055,000 (2009)



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The Brazilian Market


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The Main Brazilian Airports

Natal

Fortaleza

Belm

Manaus

~ 700 airports

~ 150 with commercial scheduled flights

Infraero manages the main 67 airports

State-owned company

97% of the air traffic in Brazil

Recife

Salvador

Braslia

Confins

Porto Alegre

Curitiba

Congonhas

Guarulhos

Santos-Dumont

Galeo

Florianpolis

Cuiab

Goinia

Campinas

Vitria

19 airports > 1 mm pax/year

2014 FIFA World Cup Host Cities Airports


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12,612,2

12,6 13,3

13,1

90

100

110

120

130

140

Strong growth in the Brazilian aviation sector

82.7

96.1

102.2110.6

113.2

engers(million)

71.2

80 % Total

10,3% CAGR

128.1

61,371,5

83,590,0

98,0 99,9

115,0

9,9

11,2

0

10

20

30

40

50

6070

2003 2004 2005 2006 2007 2008 2009

International Passengers

Domestic Passengers

InfraerosP

as

Source: Infraero

15%


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.but, on the other hand

132%

114%

79%

92%

105%

118%

165%

140%

million of pax/year

AirportPax Terminal

CapacityPax in 2009 Pax Terminal Capacity Usage

Apron

Capacity

So Paulo - Guarulhos 16,5 21,7

So Paulo - Congonhas 12,0 13,7

Rio - Galeo 15,0 11,8

Braslia 7,4 12,2

Salvador 6,0 7,1

Porto Alegre 6,1 5,6

Belo Horizonte - Confins 4,0 5,6

Recife 5,0 5,3

- -

168%

139%140%

126%

, ,

Curitiba 3,5 4,9Fortaleza 3,0 4,2

Campinas - Viracopos 2,0 3,4

Natal 1,5 1,9


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and Brazil will host 2 major sports events

2014 FIFA World Cup

12 Host Cities

15 airports involved

850,000 tourists; 600,000 using airportsUS$ 19.4 bn in infrastructure

2016 Olympic Games

Rio de Janeiro

15,000 athletes

1,000,000 touristsUS$ 14.4 bn total investment


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Airports for 2014 FIFA World Cup and 2016 Olympic Games

Estimated investment at the 15 airports

involved: US$ 2.8 bn

Other Olympic Games and FIFA World

Cup examples:

Greece: US$2.7 bn

China: US$3.5 bn

South Africa: US$2.6 bn

Beijing Airport, ChinaInfraeros answer to date:

Interim solutions

MOP - interim pax terminals

Difficulty in doing the neededinvestment in a proper and

definitive way

We have problems TODAY !


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Solution through airport concessions

The private sector brings...

Equity and debt financing

Technological transfer (state-of-

the-art industry practices)

Management agility

Decision making with transparency

and responsibility

Resulting in...

Infrastructure expansion

Comfort, safe and security for

passengers and other users of the

airportAttraction of new airlines and

routes

New investors at the airport

Sustainable growing


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Many countries already with Airport Concession Programs

Latin America

Chile, Argentina, Peru, Ecuador, Colombia,

Uruguay, Bolivia, Mexico, and other

countries in Central America and Caribbean

BRICs

India: Mumbai, Deli, Bangalore, Cochin and

Hyderabad

.

Some more successful than others

Opportunity to analyze the lessons learned

ANAC(1) analyzed several international cases:

Conclusion: concession as solutionNeed a specific regulatory framework

Draft of a Federal Decree

Pilot Project: So Gonalo do Amarante, RN

(1) Brazilian Civil Aviation Agency


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Brazilian Airport Concession Regulatory Framework

Concession of Public Services to Private Sector:

Consolidated legal framework: Federal Constitution, Concession Law, PPP Law

International accepted concepts: concessions, PPPs and administrative authorizations

Legal framework has been successfully tested over the years by the Brazilian Courts

Concession of Airports to Private Sector:

Brazilian Aviation Code

Civil Aviation A enc Law

Use of Airports Law

Resolutions issued by CONAC(1) and ANAC

Conclusion: no further general regulation is required

Still missing: specific airport industry regulation for private sector proper participationRegulation on competition, tariff setting, pricing, revenue treatment, specific biddingrules, players restriction, minimum technical operational qualifications etc.

(1) Civil Aviation Council


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Possible Concession Model for the Brazilian Airports

Onerous Concession (concession fee paid):

Government uses the value paid by private

concessionaires to operate and maintain

other Infraeros airports; or

PPP: sponsored concession, when feasibilitystudies demonstrate the need for

government grants

Concession of individual or group of airports

Airport operational qualificationInternational standards for levels of comfort

and service (IATA)

Investments and expansions must be demand

driven

Regulation of aeronautical tariffs, ceiling

prices, productivity factor

Free competition for commercial revenues:

partly used to lower aeronautical tariffs

(partial dual till)


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THANK YOU !

A-port S.A.Rua Funchal, 160 Vila OlmpiaSo Paulo SP 04551-903Brasiltel.: 55 11 3841-5779fax: 55 11 3841-5166

www.a-port.aero

A-port Operaciones S.A.Av. Vitacura, 2736, Piso 37550597 Las Condes SantiagoChiletel.: 56 2 362-9840fax: 56 2 362-9680

www.a-port.aero

A-Port SC Infra Summit Santiago Final

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