Sheremetyevo International Airport (SVO/UUEE), Russian Federation
Sheremetyevo International Airport is based about 29km north of Moscow, Russia, and is about to embark on a hugely ambitious upgrade programme.
The project is based on a corporate protocol of intents between Skanska and Sheremetyevo International Airport, which was signed on 2 March 1999.
Sheremetyevo International Airport is the joint-stock company that owns the airport. It was formed in 1996 from the publicly-owned operation that had controlled the airport since 1959.
Although all the shares in the airport company are owned by the federal government, the city authorities of Moscow are eager to take a share of the airport revenues.
They argued their case on the basis of disputed ownership of land that was used by the airport. Disputes over ownership could have threatened the entire project if they were not resolved at an early stage. The most significant danger was to the third runway, which needs to use land that the airport did not own.
In resolution of the land disputes, a memorandum of understanding (MoU) was signed between the airport and Aeroflot and Terminal OAO for constructing Terminal 3 at the airport.
A 20-year master plan (until 2030) which includes the incorporation of Terminal 3, a third runway and the phased expansion of the airport, was developed in September 2008. The master plan aims to create a strategy for long-term land development. The Ministry of Transport has granted approximately $2bn from the Federal budget and $1bn from non-budgetary funds for the upgrade project. The contract to prepare the airport master plan was awarded to Scott Wilson.
Skanska is a well-known Swedish and international conglomerate with a turnover of approximately SEK 7.9 billion ($1 billion). It has experience of Russia, notably St Petersburg, and has signalled a long-term commitment despite currency and other upheavals. A project as massive as this could be of enormous importance to the companies concerned and the economy around Moscow. Moscow and the surrounding region is the most economically vibrant part of the Russian Federation.
The expansion of Sheremetyevo International Airport is an immensely ambitious project, which could cost up to $1 billion over the course of more than a decade. The first stage of the project will cost between $200 and $300 million.
Terminal 1 was inaugurated on 3 September 1964. A transit hall to serve visa-free transit and transfer passengers was opened at the Terminal 1 in March 2003. It handles internal flights. Terminal 1 currently handles more than five million passengers per year. The Terminal 2 was inaugurated in 1987. It handles the international flights.
Between 2000 and 2003, an additional international terminal will be built with a capacity of 6 million passengers a year. The next phase of the investment programme (2003–05) includes increasing the capacity of the new terminal to 10 million passengers a year, reconstruction of runway number two and construction of new infrastructure. At present, the airport is linked to the capital only by a trunk road, with no rail connection. There have been no specific commitments to change this.
Terminal 2 modernisation
In May 2003 Sheremetyevo International Airport awarded a contract to HOCHTIEF to overhaul Terminal 2's security system. The project also involved the reconstruction of the terminal building and the installation of new baggage and screening systems.
The modernisation project began in late 2003 and was completed in 2007. As part of the programme a rail link was built outside Terminal 2. The link connects the airport with Moscow's Savyolovsky Rail Terminal and the town of Lobnya. The reconstruction and expansion of the Terminal 2 is expected to be complete by December 2009.
Terminal C was inaugurated in March 2007. The terminal was built on a 40,000ft2 site and has restaurants, cafes, duty-free retail areas, banking facilities and multi-storey parking for 1,000 cars.
Aeroflot awarded a $500m contract to Enka for the design and construction of a new terminal, Terminal D. Terminal D will occupy a 172,000m2 area and accommodate about 12 million passengers a year.
The contract also includes the construction of a 350,000m2 apron area, a control tower, flyovers, bridges, other car and bus parks and external amenities such as a water treatment plant and water supply lines, an MV switch room and a boiler house. The new terminal building will have six floors and a 48,000m2 ground floor area. It will be 38.5m high and its roof will be a steel dome with a 60m diameter and aluminium glazed facade.
The construction of a canopy for the Terminal D began in 2004. Heinrich Lamparter Stahlbau GmbH and Co is the lead contractor. Another new terminal, Terminal E, is also being built. Terminal E will accommodate 7 million passengers per year. It will have eight jetways and nine passenger gates and is scheduled to open in early 2010.
The capacity of the airport on completion, if the full expansion goes ahead, will be 30 million passengers a year. This is compared to its present capacity of 11 million passengers a year. The number of airline movements would likewise be greatly increased.
The co-operation is aimed at constructing new airport terminals and infrastructure as well as renovating, upgrading and expanding the airport's existing facilities. This would allow the possibility of ancillary works and businesses such as commercial premises being a major part of the overall project.
Skanska and Sheremetyevo will develop, finance, design and build the airport. Skanska will act in the role of project developer and contractor, and will arrange financing for the project. Skanska BOT, the group's unit for investment in projects and infrastructure, and the Finnish subsidiary Skanska Oy have combined to provide competence within project development. In addition, Skanska BOT will invest in the project and Skanska Oy will be responsible for the necessary construction work. Although the initial financing will come from the intrinsic resources of the partners in the joint venture, financial institutions are likely to be brought in at a later stage.
Developing the project requires an enormous leap of faith in the future of the Russian economy. Only strong economic growth could support the hoped for boom in passenger turnover that would generate the necessary revenue for the project to work.