Airport infrastructure covers a huge area and incorporates both hardware and more abstract systems.
These run from the immediately visible and dominating passenger terminals with security and catering, to runways and air traffic control towers, to hidden but vital baggage systems, gate operations, and lighting systems, and organizational compositions such as management and financial responsibility.
Airlines, passengers and cargo need safe, functional and affordable airport infrastructure for their operations to thrive.
Maintaining and enhancing airport infrastructure is critical, and is one of the greatest challenges airport owners and operators face.
Airports around the world need to be efficient to stay competitive. They need to identify priorities, assess costs, and deliver projects on time and budget while keeping operations running smoothly.
Commercial air transport of passengers and cargo has undergone enormous changes in recent decades, owing to factors such as exponential passenger growth, consolidation of the low-cost airline model and ever-more demanding safety and environmental requirements.
Global view
Over the past decade, the number of passengers carried worldwide grew at an average annual rate of around seven per cent, putting the total at some 4 billion passengers per year.
Records show that in the same period, the number of passengers transported in Latin America and the Caribbean surpassed 270 million and air cargo in the region increased by 25 per cent.
This substantial growth has put enormous pressure on airport infrastructure, making operations more complex and requiring greater investment in both physical and technological infrastructure to optimize its use and provide suitable services for both passengers and cargo.
According to IATA, around 1.2 - 1.5 trillion dollars will be spent on infrastructure developments between now and 2030.
In 2021, a total of 159 airport projects broke ground worldwide, with a combined value of almost $110 billion.
As reported by Airport Technology, for all projects begun in that year, 59 per cent were based on terminals, either expansions or new developments, totalling over $87 billion in investment combined.
The global airport infrastructure services market is anticipated to register growth at an impressive CAGR in the forecast period, 2023-2027.
The market growth can be attributed to the rapidly increasing passenger traffic and congestion at the airport, owing to a rising need for domestic and international travel.
Developed nations worldwide are investing significantly to make their airport infrastructure more advanced, incorporating world-class services for an enhanced travel experience.
Just days ago, the US Federal Aviation Administration (FAA) announced nearly $1 billion in funding for 99 airports across the country - these funds to be provided by President Biden’s Bipartisan Infrastructure Law.
The aim is to help US airports cope with increasing traffic, which is expected to reach or surpass pre-pandemic levels this year.
In Italy, the civil aviation authority, ENAC, secured a regulatory change, making it easier for airports to use their land for sustainable energy production.
The new law simplifies the authorizations needed to install renewable energy plants at Italian airports, deeming them “suitable areas” for new facilities.
ENAC described the streamlined regulatory framework as an important step forward for the decarbonization of airport infrastructure - helping airports support their own energy needs.
A check on India shows that in 2021, the Airports Authorities of India (AAI) announced spending of $3.5 billion in five years to modernize the existing terminals and construct new terminals as well.
Air India just bought the world's largest order of new aircraft- 470 Boeing and Airbus- and looking for new pilots, partners and alliances including India's national airport expansion and more flights to airports globally.
Also, Air India announced in March a new dream liner with direct flights from Nairobi to Delhi which will grow international trade.
In the Philippines, investments of over $20 billion each were authorized - two of the top ten most expensive projects in new construction allocations.
Aviation infrastructure in Africa
The air transport industry in Africa is on the resurgence and aviation is definitely the next infrastructure growth frontier.
One of the largest aviation hubs and businesses will be the 1.3 billion dollar deal by Qatar to develop and partner with Rwanda as an expansion of the airport business for passenger, cargo, global center of aviation excellence.
A quick look at New Addis Ababa International Airport, Africa’s flagship aviation project in Ethiopia, where a brand new 4 billion dollar airport extension terminal was constructed with the next phase expected to be completed in 2024.
With four runways, it aims to be bigger than London Heathrow and serve as many as 120 million passengers every year.
Another one is down in South Africa - Cape Town International Airport, as Africa’s third largest airport.
Cape Town International got the green light for a host of works, including expansions at both its domestic and international terminals, as well as runway rehabilitation at a cost of 540 million dollars.
Kenya is moving fast, with Nairobi, JKIA airport, enjoying expanded brand new Terminals and connected to the expressway, has major strategic expansions integrated into the new investments planned.
As for Kenya’s case, there are huge opportunities just from the many positive steps being made to improve the aviation industry - a brand new first tarmac runway is being built in the world-famous Masai Mara at Angama which will allow more safety and larger aircraft to bring more visitors to the ‘8th wonder of the world.’
Kenya is integrating roads, railways, and airports to become the world-class hub of business.
Already, the expressway has been a game changer that has proved better infrastructure can be put in place. The expansion and improvements at Jomo Kenyatta International Airport (JKIA) have placed Kenya among the countries that are keen on airport infrastructure.
According to a report released two years ago, JKIA secured the number two position after Chicago Rockford International Airport, US, in terms of fastest-growing airports, which has handled over 2,50,000 metric tonnes of air cargo. JKIA has handled 3, 42,579 metric tonnes of cargo.
Elsewhere, Angola spent 2.1 billion dollars on airport construction. Nigeria on the other hand had plans to spend $1.07 billion on such developments.
Tripoli has set aside $2.1 billion for airport construction projects while Algiers set aside $952 million.
Cargo business is growing fast globally
The African Union is pushing for its flagship project, the Single African Air Transport Market (SAATM) to advance the liberalisation of civil aviation in Africa and act as an impetus to the continent’s economic integration agenda.
The challenge is keeping high standards of aviation safety, would class navigation investments, training our staff to ICAO, IATA certifications, and considering new airlines partnerships with airports and governments.
SAATM is designed to ensure that aviation plays a major role in connecting Africa, promoting its social, economic and political integration and boosting intra-Africa trade and tourism as a result.
This belief is supported by an IATA survey that suggests that if just 12 key African countries truly opened their markets and increased connectivity, an extra 155,000 jobs and 1.3 billion dollars in annual Gross Domestic Product (GDP) would be created in those countries.
The future of airports expansions for passenger, cargo and private jets plus high standards of safety, will see more investors including private and public partnerships, growing strategic infrastructure, economic development and tourism revenues.
Chris Diaz Business leader. Twitter: @Diazchrisafrica