KwaZulu-Natal Regional Airport Growth and KZN Air Series Dr Clive Coetzee General Manager:...
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Transcript of KwaZulu-Natal Regional Airport Growth and KZN Air Series Dr Clive Coetzee General Manager:...
KwaZulu-Natal Regional Airport Growth and KZN Air Series
Dr Clive CoetzeeGeneral Manager: Infrastructure Management and Economic ServicesKZN Provincial Treasury
Passenger Flights pre-2011
Passenger Flights 2011 to 2014
Passenger Movements
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000Monthly Average
Increased Scheduled Flights, Destinations and
Passenger Movements
Avis Opened an Office in Ulundi
Number of Property Sales in Margate because of direct flights
Increased number of direct jobs at the 9 regional airports = 36
Total Investment in 9 regional airports = +-R115m post 2010
Total savings of +-R6m pa for PMB Businesses using PMB Airport re KSIA
Revenue to the Msunduzi Municipality increased from R3.5m in 2010 to R7.4m in 2013
Savings for KZN Gov from using flights to and from Ulundi = +- R3.5m April 12 to Jun 14
Passenger Flights planned post 2014
Concept is to showcase KZN aviation and the various municipal airports, to
support tourism in the province and to position the province as an attractive and
competitive aviation industry location.
Why Investing in KZN Regional Airports – PMB Airport
• Achievements and In the Pipe line– Increase in Cargo Activity– Investor to establish a bio fuel developed aircraft
engine manufacturing establishment and to create an aviation industry
– Land Developments (Hotel, etc) need to take place
9
PIETERMARITZBURG AIRPORT
Massive Progress – Great Success Story
An airport to be proud off
Significant Opportunities
Dedicated Partnership Imperative
• PMB Airport experienced significant growth and improvement in performance
• Its becoming an “Airport of Choice”
• No doubt its a success story
• But some challenges still exists
PIETERMARITZBURG AIRPORT
1,500
3,500
5,500
7,500
9,500
11,500
13,500
Total PassengersLinear (Total Passengers)Linear (Total Passengers)
PIETERMARITZBURG AIRPORT
Average 2006
Average 2007
Average 2008
Average 2009
Average 2010
Average 2011
Average 2012
Average 2013
Average 2014
Average 2015
Arrival Flights: Scheduled 140 123 114 106 105 98 123 119 138 116
Arrival Flights: Non-Scheduled 344 373 351 106 312 262 252 164 157 135
Departure Flights: Scheduled 139 123 113 314 105 98 123 127 137 115
Departure Flights: Non-Scheduled 338 344 333 116 269 230 213 142 141 112
Local & Training Flights 519 462 684 767 575 506 439 373 305 295
Total Flights 1 481 1 424 1 595 1 408 1 366 1 193 1 149 932 877 773
Arriving Passengers: Scheduled 2 894 2 994 2 829 2 096 2 030 3 616 3 935 4 734 5 042 4 749Arriving Passengers: Non-Scheduled 365 334 403 392 393 271 206 123 117 124
Departing Passengers: Scheduled 2 850 2 787 2 556 2 046 1 939 3 690 4 002 4 829 5 168 4 921Departing Passengers: Non-Scheduled 377 430 490 500 571 413 415 157 160 207
Total Passengers 6 486 6 545 6 278 5 034 4 933 7 990 8 557 9 842 10 486 10 001
Flight Diversions 5 4 5 9 3 1 1 1 1 0
Diversions as a % of Arrivals 1 1 1 5 1 0 0 0 0 0
Passengers per Departing Flight 20 23 23 7 18 37 33 38 38 42
Passengers per Arriving Flight 21 24 25 20 19 37 32 38 37 41
PIETERMARITZBURG AIRPORT
R’000 2008/09. 2010/11. % Change pa
2011/12. 2012/13. 2013/14. 2014/15.
Receipts
Passenger Levy 1004 1493 24.37 1967 2545 3932 4325
Landing Fees 703 1107 28.74 1444 1861 2288 2516
Other Receipts 993 906 -4.39 1003 1093 1134 1247
Total inflows 2700 3506 48.72 4414 5499 7354 8089
Payments
Total outflows -5689 -4313 -12.09 -5104 -4633 -5004 -5505
Net Cash Flow -2989 -807 -36.50 -690 865 2349 2584
PIETERMARITZBURG AIRPORT
2003/04. 2004/05. 2005/06. 2006/07. 2007/08. 2008/09. 2010/11. 2011/12. 2012/13. 2013/14. 2014/15.
-4000
-3000
-2000
-1000
0
1000
2000
3000
Net Cash Flow
Summary Stats of Passenger Survey
Where do you Reside? PMB 59.61 PTA 7.84 JHB 17.25 DBN 3.53
The location of your business/departme
nt?PMB 50.59 PTA 9.41 JHB 16.47 DBN 3.53
Do you primarily travel for business, government, non-governmental or personal (private)
purposes
Business 56.47 Government 7.06 Personal 19.61 Business&personal 4.31
PIETERMARITZBURG AIRPORT
Average number of flights per year over the past 3 years? Average 26.46 Sum 6723Number of officials from your business/department who fly regularly (more than four times/year)? Average 36.15 Sum 9219Number of flights paid for by the company/department in an average year? Average 104.31 Sum 26496Please indicate your preference and/or willingness to fly to the following destination(number of flights per year)
CPT direct ? Yes 185 No 70
CPT via PE ? Yes 56 No 199
CPT via EL ? Yes 60 No 195
Lanseria ? Yes 92 No 160
BLOEM Yes 64 No 190
Other ? (please specify) OR Tambo 8 JHB 11Would you support a new airline and/or a new destination (please specify)? No 46 Yes 207
Regional Airport PrecinctsEconomic Activities-Land Areas (Ha)
Mkuse PZB Dundee Margate Newcastle
Ladysmith Ulundi R/ Bay Total
Primary industry 1.00 12.00 0.00 73.00 41.50 127.50
Logistics 173.00 173.00
Technology 1.80 2.00 11.00 3.00 4.00 1.40 23.20
Business 1.80 40.00 41.80
Residential 6.00 3.50 1.30 17.00 4.20 5.10 37.10
Tourism/Culture 5.00 12.00 23.00 40.00
Urban Agric 4.00 46.00 3.10 53.10
Terminal/Parking 1.80 3.00 3.00 1.20 3.00 3.00 1.30 2.30 18.60
Generall Aviation 11.00 5.50 2.50 6.30 6.00 4.00 1.30 4.50 41.10Runway/Apron/
Taxi 41.00 37.00 17.00 27.00 33.00 40.00 43.50 37.00 275.50
Roads2.00 4.00 0.50 2.00 11.00 4.00 3.00 2.00 28.50
75.40 65.00 81.00 39.80 350.00 135.50 60.40 52.30 859.40
Airport Net Present Values and Internal Rate of Return (R million and Per cent)
Initial Capital Capex NPV NPV IRR
(KZN Grant) IIPSA Model 8% 4%
Pietermaritzburg R 39.00 R 126.63 R 65.65 R 129.23 23.1%
Richards Bay R 12.00 R 145.65 R -61.48 R -83.85 N/A
Margate R 10.00 R 118.20 R 4.59 R 35.62 9.0%
Ulundi R 30.00 R 69.83 -R 10.27 R 0.68 4.2%
Newcastle R 272.92 -R 93.78 -R 104.68 -7.6%
Mkuze R 130.20 R -15.21 R 6.49 4.9%
Dundee R 47.88 -R 16.51 -R 18.21 -9.4%
Ladysmith R 194.50 R -15.58 R 11.34 5.3%
Total R 91.00 R 1 105.81 R -142.59 R -23.39
PMB Case Study
The project is for the establishment, financing, designing, constructing and
operating of a number of regional innovation and technology hubs in the province.
Msunduzi, Newcastle, Hibiscus Coast, uMhlathuze
Site Location
PMB
LOCAL MUNICIPALITY
Size (HECTARES)
Cost to develop Zoning / Ownership
Newcastle LM 5.46 ha R 613 211 517 EDUCATIONAL /Majuba FET
Umhlathuze LM 9.05 ha R 1 676 780 058 IN PDA PROCESS / Umhlathuze LM
Msunduzi LM 25 ha R 1 959 596 160 COMMERCIAL, INDUSTRIAL / Msunduzi LM
Hibiscus Coast LM 28.5 ha R 1 138 472 194 TO BE SUBDIVIDED / Hibiscus Coast LM
Financial Analysis
Financial Analysis
NPV IRR MIRR Discount Payback Period
R 6,609,479,754.23 19% 13% 10.47
The concept initiatively seems sustainable from a capital budgeting point of view. The concept has a positive net
present value, an estimated yield of between 13% and 19% and a discounted payback period of about 11 years. Total
capex of R5.5bn plus total opex of R6.5bn vs. Total income of R34bn = NPV of R6.6bn over a 23 year period or R289m
per annum.
Financial Analysis
Total Capex Total Opex Total Costs Total Income NPV NPV pa
Province (Concept)
5 450 963 267 6 497 021 281 11 947 984
54834 342 893
2946 637 390
777288 582
208
PMB 1 959 596 160 3 021 846 002 4 981 442 162 15 691 007
8093 389 038
778147 349
512
Newcastle 613 211 517 749 392 196 1 362 603 713 4 465 492 298 973 901 875 42 343 560
Hibiscus coast
1 201 375 532 1 509 895 344 2 711 270 876 5 846 313 854 788 941 220 34 301 792
Umhlathuze 1 676 780 058 1 215 887 739 2 892 667 797 8 260 907 907 1 487 210
370 64 661 320
AVIATION ACADEMY
Durban University of Technology
The World Cycling Centre
Aircraft Manufacturing
Msunduzi Technology and Innovation Hub:Advanced Manufacturing and related cluster for the Transport Industry
Air Terrestrial Maritime Space + n
Skills – Low end to Post-Doc , determine current and future skills needed
Underlying Science and TechnologyMaterial Science, Process Technologies, Energy, n
Shared facilities – testing, labs, 3D printers , conference and meeting space , high end computing
Business Support – legal (IP), entrepreneurship, access to capital, Community of practice, Networking Opportunities (act on what the Market wants)
Recreational activities – cycle tracks, possible gym/sport institute, use as draw card towards the Innovation Park (Create Sense of place)
Cross Cutting Platforms