Jorge Chávez International Airport (LIM/SPIM), Lima, Peru

In November 2000 a consortium (Alterra) including Frankfurt Airport Services Worldwide (Flughafen Frankfurt Main AG) (32.75%), German airport operators, Bechtel Enterprises International Ltd (42.75%), Singapore Changi Airport Enterprise Pty. Ltd (10%) and Cosapi S.A. (14.5%), a Peruvian construction company, won the bidding process put up by the Peruvian State for the Jorge Chávez International Airport concession.

The consortium signed a 30-year concession agreement with the Government of Peru in February 2001. Lima Airport Partners SRL was the company organised by the consortium to fulfil the requirements of the concession agreement and is responsible for managing, operating, maintaining, developing and expanding the airport.

Lima Airport Partners will invest over $1.4bn over a 30-year period, which will include a new runway, air-sea cargo hub and a new passenger terminal.

The airport, which is situated 12km from Lima is now an important South American hub and was elected Best South American Airport in 2005 by Skytrax. The airport had an increase of 25% in tourist traffic in the first quarter of 2005 and planes fly to over 45 destinations in 20 countries. CORPAC is the Peruvian airport authority and the body that will oversee the concession.

DEVELOPMENT BACKGROUND

The number of international visitors taking an interest in South America is rapidly increasing, and Peru is keen to take advantage of this. The airport development will be a concentrated business venture encouraging tourism and business visitors. It will also inspire local investment in the retail, export and hospitality industries. The consortium has pledged to invest $109m in the first 42 months, $193m in the first eight years, moving to $1.4bn by the end of the 30-year term.

The three members of the consortium will bring different expertise to the project. Approximately $350m of the total project value will cover engineering services from Bechtel, ground support equipment, power plant and grid equipment and safety devices. Cosapi will support the development of the Jorge Chavez into a leading South American airport. It will provide transportation and related projects, such as car park facilities, boarding bridges and hotel and retail facilities. Flughafen Frankfurt Main manages and markets 30 international airports, and its experience will support the work in Peru.

The consortium expected passenger figures to increase from 4.2 million in 1998 to 5.6 million in year eight of the concession (passenger volume in 2005 – three years ahead of target – was actually 5,662,228 – an increase of 11.6% on 2004), 11.3 million in year 15 and 21.7 million in Year 30.

Cargo volume is expected to rise from 86,000t/yr in 1998 to 183,000t/yr in year 8 (freight volume in 2005 was actually 177,062t an increase of 3.2% on 2004 and on target for the 2008 figure); 277,000t/yr in year 15 and 566,000t/yr in year 30.

SHORT-TERM DEVELOPMENT PLAN

By mid-2002 the airport felt the advantages of initial investment with a smoother passenger service in both domestic and international departures. In the first three and a half years over $130 million will be invested in the terminal infrastructure upgrade. This will include boarding bridges, new aircraft aprons and taxiways, reorganising the car-parking facilities, and developing the hotel and retail facilities at the airport.

An international-standard shopping plaza, the Peru Plaza Shopping Centre, was developed in Terminal 1 and inaugurated in 2005.

A link between airport and sea cargo operations will be encouraged to promote an increase in air courier freight from nearby ports for final air-delivery. This will radically increase volume going through the airport. In the long term a free zone for special customs treatment will also be established to encourage cooperation between air and sea cargo developments and other courier services.

LONG-TERM DEVELOPMENT PLAN

By the eighth year the consortium plans to have a B-level grading, making it one of the best airports in the world. Also within this time, the aim is to have a number of complementary projects completed, such as the on-site hotel, shopping and recreation centres, extended parking facilities, etc.

By the 11th year, the second runway will be built, and by the conclusion of the 30-year concession, a new terminal complex will take over from the current one. The new H-shaped complex will be situated between the runways to reduce further passenger walking distances. Revenue from the international shopping plaza in Terminal 1 will pay for the retail complex in Terminal 2.

THE NEW TERMINAL

The existing terminal went through a near demolition when the consortium took over. During a 31-month project the terminal was doubled in size from 25,000m² to 54,000m² and now (opened in January 2005 at a cost of $148 million) has 94 check-in desks and 18 gates (seven with passenger airbridges), with a post office, bank, bureau de change, restaurants, cafeterias, bars, VIP lounge, duty free shop, newsagent / tobacconist, gift shop, travel agent, tourist help desk and car rental facilities and a huge shopping plaza.

The concourse for this was designed to be curved to increase the parking space for airplanes and minimise walking distances for passengers.

Arquitectonica were the architects, Airport Design and Management were cost surveyors; the construction of a new terminal and a second runway is now most definitely on the drawing board. In June 2006 Preston Aviation Solutions Pty Ltd supplied its passenger and baggage flow simulation system (PaxSim) to Lima Airport Partners in order to assist them in the planning of the second terminal building.

ECONOMIC CONSIDERATIONS

The Peruvian government expects to receive $425m by 2008 through reimbursement from Lima Airport Partners. In addition to this the expansion will create more than 13,000 jobs, plus a further 540 permanent jobs at the extended facilities.