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African Renaissance Conference 2014 Terence Delomoney General Manager: King Shaka International Airport 23rd of May 2014 Airports Company South Africa’s progress in developing Aviation on the Continent Terence Delomoney General Manager: King Shaka International Airport 23rd of May 2014 Contents • Our Business • Our Service Delivery • African Connectivity • King Shaka International Airport • Our Partnerships • Conclusion Ownership Structure • Airports Company South Africa SOC Limited - registered as a “State Owned Company” as per the Companies Act, 2008 • A listed major public entity in terms of Schedule 2 of the Public Finance Management Act, 1999. • Share-holding as follows: • • South African Government (74,6 percent), • The Public Investment Corporation SOC Ltd (20 percent), • Empowerment Investors (4,21 percent) • Staff Share Incentive Scheme (1,19 percent). The company is accountable to the Department of Transport in the Republic of South Africa. Our Footprint ZIMBABWE AFGHANISTAN CHINA BOTSWANA NEPAL PAKISTAN MOZAMBIQUE NAMIBIA INDIA O.R. Tambo International Airport Upington International Airport Bloemfontein International Airport Kimberley Airport ATLANTIC OCEAN Chhatrapati Shivaji International Airport. Mumbai King Shaka International Airport SOUTH AFRICA BRAZIL PERU BOLIVIA Cape Town International Airport East London Airport INDIAN OCEAN Guarulhos International Airport International Airport National Airport ACSA Concessioned Airport George Airport Port Elizabeth International Airport ARGENTINA Strategy ACSA’S Vision: 7 Strategic Thrusts A World Leading Airports Business Mission: To develop and manage world-class airports for the benefit of all stakeholders Sustainability Growth Efficiency and Cost Management Values: PRIDE – Passion, Results, Integrity, Diversity and Excellence Strategy: Relevance Business Performance Excellence To build an efficient and customer-focused business Core Outcomes 1. Deliver shareholder value 2. Build win-win partnerships with all stakeholders 3. Identify and secure new business (AMS / Propco) 4. Strengthen business excellence 5. Accelerate sustainability and transformation 6. Facilitate economic regulatory legislation and funding framework 7. Manage and develop a high performing engaged team 20 Years of Forward Thinking and Embracing Change • 23 July 1993, the company officially established and 9 airports transferred to the Company • Airports Company South Africa’s sole shareholder is the state, through the NDoT • Commenced operations in 1994 1993 • Opening of O.R. Tambo International Airport Domestic Terminal • PIC acquires Adrisa which owns 20% of Airports Company South Africa from Aeroporti di Roma 1994-1998 • Government sells 25.4% of Airports Company South Africa’s shares to Aeroporti di Roma, various empowerment groups, management and employees 1999-2005 • Opening of O.R. Tambo International Airport Central Terminal Building 2006-2008 • Airport operator in consortium that was awarded Mumbai International Airport operating concession and acquired a 10% shareholding • R12bn DMTN programme registered and R2bn debut bond issued • Opening of international pier at O.R. Tambo International Airport Domestic Terminal 2009 • Adoption of Early Debt Repayment Strategy resulting in R3bn being set aside to repay debt • New Economic Regulatory Committee appointed • Announcement of the review of the Economic Regulation Framework 2010 2011 • Opening of Cape Town International Airport Central Terminal • Completion of King Shaka International Airport and successful move from Durban International Airport to new site in just 6 hours • Successful facilitation of the 2010 FIFA World Cup • Updated the DMTN programme to R30bn 2012 2013 • Airport operator in consortium that was awarded the Guarulhos International Airport operating concession and acquired a 5.1% shareholding • Sale of Durban International Airport site • The company’s airports continue to be recognised as leading airports in Africa through numerous service excellence awards by the Airports Council International Service Excellence Reaps Awards Airports Company South Africa airports are rated amongst the best in the world for service and routinely sweep the boards for African airports Rigorous attention to service… …brings recognition and awards The Company joined the Airports Council International (ACI) Airports Service Quality (ASQ) programme in 2006. Over the past decade Airports Company South Africa as whole and the Company’s airports individually have won numerous service and quality awards. The ASQ programme surveys passengers’ experience at 285 airports around the world on 34 key service indicators. Every year since 2006 Airports Company South Africa airports have featured in the ACI’s ratings: Since 2006 ASQ ratings at the Company's airports has improved from an average of 3.67 to 4.08 out of a possible maximum of 5.00. Investment in the quality and capacity of facilities, together with a relentless focus on service excellence continuously enhances the customer experience at all the Company’s airports. Best Airport in Africa Best Regional Airport in Africa Most Improved Airport in Africa In 2013 SkyTrax rated Cape Town International, King Shaka International and OR Tambo International respectively as the 22nd, 26th and 28th best airports in the world. OR Tambo International Airport, Cape Town International Airport and King Shaka International Airport have now all been inducted into the ACI’s Hall of Fame. Achievements: 20 Years Airport Service Awards 1998 1999 2000 2001 2006 2007 2008 2009 2010 2011 2012 2013 Africa’s Leading Airport Africa Airport of the Year Award Airport Council International Awards – by Region: Africa Best Airport Best Improved Airport Best Regional Airport Best Improved Regional Airport Hall of Fame Skytrax 28th 22nd 26th Worlds Top 100 Airports 3rd Worlds Best Domestic Airport Worlds Best Airport by Passenger Numbers Under 5 million 5 - 10 million 10 - 20 million 1st 1st 9th Airport Cargo Excellence – 2013 African Airport of the Year OR Tambo International Airport Cape Town International Airport King Shaka International Airport / Durban International Airport George Airport Port Elizabeth International Airport East London Airport Upington International Airport Delivering Major Airport Investment Projects From 2004 to 2010 Airports Company South Africa undertook a major capacity expansion and airport upgrade programme, delivering multiple complex projects with a total capital value of over R20 billion Capital Investment (Rbn) 7 6 5 4 3 2 1 0 OR Tambo International Airport Completion of a new R2,3bn Central Terminal Building providing an enlarged departure level with 75 additional check-in counters. The airport reached full compliance to accommodate the Airbus A380 with 90-metre baggage carousels 2004 2006 2008 2010 Commissioning of a R470m, 5 200 bay parkade with separation of vehicle and pedestrian circulation 30 Additional bulk fuel storage tanks with additional capacity of 12m litres 25 Cape Town International Airport Assets (Rbn) 20 Construction of new Central Terminal Building, a 4 000 bay multi-storey parkade and five additional Code C aircraft stands at a combined cost of over R2bn. 15 10 5 0 2004 2006 2008 2010 King Shaka International Airport Construction and commissioning of a new R6.7bn airport was completed in 32 months. At the heart of a proposed new aerotropolis, the airport has an annual capacity of 7.5 million passengers (45 million passengers by the last phase of development), a runway length of 3.7 km and has been built to handle the largest new generation aircraft. National and Regional Airports Projects at Bloemfontein, George Kimberley and East London airports included terminal building refurbishments, runway and taxiway upgrades. The build programme was managed entirely by the Company’s own Project Management team. A Mature and Dynamic Team The Airports Company South Africa employs 2,716 people across South Africa and abroad. Some 300 of these deliver services from the Corporate Office in Johannesburg, with the balance deployed across the airport network. Target-driven Management Staff and Revenue Target-driven management underpins the company’s high performance culture. Revenue (Rbn) Staff 9 3000 6 2000 3 1000 0 0 The Learning and Growth perspective of the Balanced Scorecard establishes performance measures for the efficient progression of all employees across the business. A culture of professionalism has seen the Company's revenue grow significantly faster than its staff complement. 2005 2007 2009 2011 2013 Total Staff Business units set targets in a Balanced Scorecard framework that tracks achievement on a monthly and quarterly basis against key performance indicators. Revenue (Rbn) Each year, ACSA approves a Company Performance Framework. Transformation and Socio Economic Contribution • Approximately 100,000 jobs created over the next four years through our Capex and Opex programmes. • R56 million per annum spent directly on socio economic development projects. • Community Development • Mobility Projects • Environmental Projects • Enterprise Development • Improving gender representation – 54% male and 46% female. • Employment equity targets progressed towards the national economically active population. • B-BBEE Rating improved from a Level 3 to a Level 2 in the past year. Value Proposition The Company has the full range of proven capabilities ICAO-certified airport training academy Full suite of specialised airport development and aviation services Experience and networks in developing markets Proven airport operations capabilities Training Academy As the only ICAO-certified trainer in Sub-Sahara Africa, The ACSA Academy has become the aviation training resource for Anglophone Africa An African Footprint With an impressive reach that touches over 400 companies, the Academy has hosted and trained delegates from the following countries: Angola Mozambique Botswana Namibia Burundi Rwanda Comoros South Africa Djibouti South Sudan Gambia Swaziland Kenya Tanzania Lesotho Uganda Madagascar Zambia Mauritius Zimbabwe Over the years the focus on external training has grown substantially. As revenue has grown year-on-year, so has the share of revenue from sources outside South Africa. ACSA Academy Revenue South Africa Rest of Africa 2010 2011 2012 2013 2014 Airport Operations Professionals 250 Specialists Over the two decades since its inception, the Company has developed a pool of exceptional specialist talent in all aspects of airport operations. Specialist airport operations skills: Aviation Services Human Resources Commercial Services Information Technology General management of airport operations Engineers (Industrial, Civil, Mechanical, Electrical) Engineering technicians (Industrial, Civil, Mechanical, Electrical) Airport operations specialists Safety specialists Environmental specialists Security specialists Policy and procedure specialists Passenger services specialists Commercial offerings and revenue management IT specialists - airport related Human resource optimisation Serving Passengers and Growing Revenues ACSA’s Nine South African Airports with Total Passenger Numbers in 2013 18.6m OR Tambo International (Johannesburg) 8.4m Cape Town International 4.7m King Shaka International (Durban) 20 Departing Passengers (Million) 18 16 14 12 10 2004 2005 2006 2007 2008 1.3m 0.6m 0.5m Port Elizabeth International East London George 0.4m 0.2m Bram Fischer Kimberley International (Bloemfontein) 0.1m Upington International 36m Guarulhos International Airport Brazil 2009 2010 2011 2012 2013 36m 8 Aeronautical Mumbai International Airport India Non-aeronautical 6 4 2 0 2004 2005 2006 Revenue (Rand billion) 2007 2008 2009 2010 2011 2012 2013 Total Passenger Numbers No’s in millions Domestic 2011/2012 2012/2013 2013/2014 25 058 23 899 23 368 International Africa 4 176 4 458 4 592 International Other 6 493 6 342 6 650 152 145 162 35 878 34 844 34 772 Unscheduled Total ACSA - African Connections No’s in millions 2011/2012 2012/2013 Total Pax - Africa 4 175 729 4 457 642 4 592 172 ORTIA 3 953 915 4 218 604 4 344 993 192 898 202 898 206 349 28 916 36 140 40 830 CIA KSIA Angola Madagascar Benin Malawi Botswana Mali Cameroon Mauritius Congo DRC Egypt Mozambique Namibia Nigeria Seychelles Eritrea Ethiopia Gabon South Africa 2013/2014 Swaziland Tanzania Uganda Ghana Zambia Ivory Coast Zanzibar Kenya Zimbabwe Lesotho ORTIA - African Destinations Angola Benin Malawi Botswana Mali Cameroon Mauritius Congo Mozambique DRC Namibia Egypt Nigeria Eritrea Seychelles Ethiopia Swaziland Gabon Tanzania Ghana Uganda Ivory Coast Zambia Kenya Zanzibar Lesotho Zimbabwe Madagascar South Africa CTIA - African Destinations Botswana Eritrea Mauritius Mozambique Namibia Uganda Zimbabwe South Africa KSIA - African Destinations Mauritius Mozambique Zambia Zimbabwe South Africa Airport Management Solutions Concessions: • Chhatrapati Shivaji International Airport - Mumbai • Guarulhos International Airport - Brazil Advisory and Technical and Advisory Services: • Ghana Airports Limited – MOU Other Enquiries and Opportunities Investigated: • Benin • DRC • Namibia King Shaka International Airport King Shaka International Airport • Economic catalyst in region • 1st purpose built greenfield aerotropolis • Participation in developing more routes to Durban and KZN • World Routes 2015 – Durban • Award winning airport – Service Standards • ACI Africa Conference 2014 Partnerships • Employees • Communities • Passengers • Airlines and other Industry Role Players • Department of Transport • Progressive Local and Provincial Government • Business Communities • Tourism Authorities • Partnership with Dube TradePort Conclusion Airports Company South Africa will continue its journey towards managing and developing world class airports with its focus on: • • • • • Service and operational excellence Increasing Air Connectivity Developing its people Transforming and building the economy Ensuring sustainability • Increasing its International and African Footprint Together with our partners and stakeholders Thank You