Market liberalisation and ‘open sky’ agreements with neighboring countries (especially UAE, Lebanon, Bahrain, Kuwait and Qatar) also resulted in a rise of direct cargo services, which combined with the regional geographic advantage of being in medium range proximity to both Europe and Asia, provided healthy cargo flows.
The region also became obsessed with airport infrastructure projects to accommodate larger aviation traffic being driven by the dynamic expansion of the local and regional economies.
Although it is hard to know in early 2009 which airport projects will slow more than others, how did the airport modernisation effort in the Mideast look before the economic dynamic changed so dramatically?
Bahrain
Bahrain is moving full steam ahead with building, upgrading and expanding several key transportation hubs. Although the credit crunch is slated to cause some completion dates to be revised, the year 2009 will mark a milestone for the country’s primary infrastructure projects.
Construction activity on the Qatar- Bahrain Bridge is due to begin by the end of this month, according to a spokesperson from the Qatar- Bahrain Causeway Foundation, a joint government body overseeing the bridge’s construction. Billed as the world’s longest marine causeway, the “Friendship Causeway” – estimated at a total cost of US$3 billion – is touted as one of the most important infrastructure projects in the region.
In early January, Sheikh Mohammed bin Essa Al Khalifa, chief executive of Bahrain’s Economic Development Board, told local media that the Friendship Causeway “will strengthen Bahrain’s position as the best place in the Middle East for companies to locate in order to develop their businesses across all Gulf Cooperation Council economies.”
Around 40km of twin carriageway will decrease the journey by road between the two countries from five hours to a mere 30 minutes, with the bridge serving as a natural continuation of the King Fahd Causeway, which connects Bahrain and Saudi Arabia. Moreover, the causeway is slated to provide a connection for future highspeed freight and passenger rail lines.
However, the global slowdown in the construction sector could potentially delay the start of building activities. The Bahrain-Qatar Bridge is part of the Kingdom’s ongoing investment into strengthening its position as a regional transport hub. Bahrain is looking to further capitalise on its strategic location close to big markets, including Saudi Arabia and Iran.
2008 also saw the start of upgrade and expansion plans for Bahrain International Airport.
The Bahrain Airport Company (BAC) is investing in the upgrade of the cargo handling facility.
“We are approaching the expansion of cargo handling capacity in three stages,” according to Osama Al Ali, CEO of BAC. “The short term plans are aimed at enhancing existing terminals. In the medium run we are looking to increase the number of facilities and total capacity levels, and the long term objective is to operate as a global cargo hub, seamlessly integrated with the country’s road and sea networks.”
Additionally, enlargement of the terminal building will provide more aircraft parking stands, initially raising airport capacity to 15 million passengers per annum by 2011, and 22 million by 2020.
Syria
Work is also under way to improve the Damascus International Airport, including a US$59 million upgrade of passenger facilities due to be completed this year, while an extensive renovation of the Deir El Zor Airport in the east of Syria was completed in early 2008.
The flow of air cargo into and out of the airport will be aided by planned improvements in the road network, which now covers more than 50,000 km. One of the major projects in the pipeline is the US$380 million Damascus Ring Highway, to be constructed by private contractors on a build-operate-transfer basis.
United Arab Emirates
Of the six airports in UAE, three – Abu Dhabi, Dubai and Fujairah – have current upgrade and expansion plans and a new airport in Dubai (Jebel Ali) is being developed. These expansions are being fueled by strong demand for increased passenger and cargo capacity. Taken together, the projects are valued at approximately US$12 billion.
Abu Dhabi International Airport will get a new runway and taxi way, expanded cargo facilities, additional terminal for 18 new aircraft parking stands and other amenities. Fujairah Airport is expanding its terminal, upgrading freight facilities, baggage handling equipment and catering facilities and upgrading its navigation system.
At Dubai International Airport a new terminal has just been opened creating 62 new parking bays, a new cargo terminal was recently opened and existing apron, taxiways, and concourse have been expanded to create parking for 27 additional wide-body aircraft. Ground handling facilities and other infrastructure and amenities have been upgraded as well.
Jordan
With three main airports in Jordan – Amman Marka International Airport (AMIA), the Aqaba International Airport (AIA), and the Queen Alia International Airport (QAIA) – the Jordanian authorities are focusing on key upgrades primarily at QAIA.
QAIA was built in 1983 to accommodate growth in air traffic with a capacity of 4 million passengers per year. The current number of passengers passing through the airport now exceeds 3 million per year and cargo exceeds 90,718 tonnes.
A contract has just been awarded to the Alfa Consortium – which consists of Aéroports de Paris (France), J&P (Cyprus), ADIC (UAE), Noor (Kuwait) and EDGO (Jordan) – for a three year, US$200 million, 90,000-squaremetre expansion project to upgrade the airport and ready for anticipated increases in traffic over the next 30 years.
Construction of the new QAIA terminal – from 2007 through 2010 – is part of Jordan’s plans to become a regional financial, trade and transport hub which expects to generate revenues exceeding US$120 million.
Kuwait
Kuwait’s Civil Aviation Authority is expanding and modernising existing aviation infrastructure, and together with the government has developed plans for Kuwait’s International Airport (KIA).
These plans are aimed at increasing KIA’s service capacity to airlines, passengers, and cargo shippers.
The development of the airport facilities requires substantial investment, and KIA has classified the airport projects into two categories. The first are government-funded projects, which include the development of air navigation facilities, runways, taxiways, apron as well as the necessary security and safety facilities.
The second project category involves facilities that would be established and developed by the private sector. Those include the development of the passenger terminal, the cargo village, the aircraft maintenance facilities, as well as the general navigation facilities.
Despite declining oil revenues, the government is determined to stay on course with the Civil Aviation Authority’s expansion and modernisation program. The first phase is to begin shortly after tendering and will be undertaken over five years and, if on schedule, will be completed in 2010.
Saudi Arabia
The Saudi government has signed contracts valued at US$817 million, through the General Authority of Civil Aviation (GACA), to expand and upgrade three of the country’s existing airports, as well as build two new ones.
This will help to accommodate the increased number of passengers and cargo and to compete more successfully with other airports in the region. The allocation will also add to the economic, civil, social, political and religious development in the region.
King Abdul Aziz International Airport in Jeddah (KAIA) began modernisation in 2001, and that first phase is still underway. KAIA will be expanded and modernised in an effort to keep up with the strong competition in the region, to make it a regional hub and a major passenger transit point, as well as to significantly add to the economic development in the region.
KAIA will be upgraded in three phases with a total budget of US$1.5 billion. It is to be finished by 2011 and will include two new terminals, upgrading of existing ones, a new concourse with 25 gates and 1.45 million tonne annual capacity cargo complex.
The first phase worth US$240.77 million was awarded to a local company, Al-Mabani General Contractors Co. and will include, airfi eld pavement, lighting system, drainage, fuel network, and terminal redevelopment.
The Prince Mohamed Bin Abdel Aziz Airport (Madinah) is to be transformed from a domestic to an international airport in order to give Haj pilgrims an alternative to KAIA, and take pressure off KAIA. Upgrades for existing facilities and the construction of a new terminal and runway were recently completed.
Tabuk Regional Airport (Tabuk), is the 4th largest regional airport in the Kingdom and has an annual passenger growth rate of 4.5 per cent and serves 60 domestic flights daily. The Saudi Bin Laden Group was awarded US$59 million for the airport expansion, which includes: new runways, aircraft parking facilities, control tower, cargo service building and other facilities.
Two new projects will also include airport development. Emaar Properties has been awarded the contract as master developer of the US$26.6 billion King Abdullah Economic City which will will be located in the north of Jeddah and will comprise financial, educational, industrial, residential, and entertainment components as well as an airport.
King Abdullah Economic City has also announced plans to build Saudi Arabia’s 5th international airport in Rabigh. Th is new airport will serve the economic city and nearby areas. It is expected to increase the investment projects in the city to US$53.3 billion instead of the previously estimated US$26.6 billion.