Freight Council Update October 2018 Brenton Cox Executive General - PowerPoint PPT Presentation

Freight Council Update October 2018

Brenton Cox Executive General Manager Finance & Corporate - Airport Update & Industry Context - Terminal Expansion - Air Freight Opportunity from Adelaide - Master Plan & Airport East

International Passengers 1 million + 230k 1997/98 2017/18

Largest single site employment precinct 9k + Direct & indirect jobs Contributes $2B + 2% + to State’s economy G.S.P

Fastest growing capital city airport

40%+ of international travelers to ADL must travel indirectly South Australian International Passengers by Airport Current Year 955.6k Previous Year 258.5k 201.0k 50.5k 28.7k 23.0k Direct ADL SYD MEL BNE PER OTH Indirect Visitors Residents

Industry Context • Technology • Global Competition • Asian Growth 8

Industry Context

Global Competition

Asian Growth China now our largest source market. 6 of our top 10 source markets are in Asia Origin of Inbound Passengers (FY17) Indonesia 1.8% Italy 1.8% France 1.9% Canada 1.9% Korea, South 2.4% Germany 3.0% Japan 3.2% Hong Kong 4.0% Singapore 4.1% Malaysia 4.5% India 4.7% USA 7.3% New Zealand 10.9% UK, CIs & IOM 11.8% China 16.0% Other 20.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 11

Adelaide is set to benefit from improvements in range of new generation jets entering the market. New Engine options on existing Single-aisle jets will make key SE Asian markets accessible on aircraft with 170-220 seats. And longer range wide-body aircraft will make North America, Africa and Eastern Europe accessible for without a stopover for the first time.

Terminal Expansion 13

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South Australia’s Airfreight Economy

Freight Capacity To / From Adelaide on Passenger Aircraft The amount of freight that can be carried on each individual flight can vary widely, with the number of passengers, amount of luggage, size and / or weight of the consignment, weather, fuel requirements and the type of freights (eg livestock, perishables) all able to influence the amount of freight that can be taken. The typical freight capacity figures below are indicative of a full flight. Qatar (23 tonnes) China Southern Airlines (10 tonnes) A350 | 283 seats | Daily A333 | 259 seats | 5 weekly D O H A G U A N G Z H O U Emirates (23 tonnes) Cathay Pacific (15 tonnes) D U B A I B77W | 364 seats | Daily A333 | 251 seats | 6 weekly H O N G K O N G Malaysia Airlines (15 tonnes) A333 | 290 seats | 5 weekly K U A L A L U M P U R S I N G A P O R E Singapore Airlines (15 tonnes) A333 | 285 seats | Daily N A D I D E N P A S A R Fiji Airways B738 | 146 seats | 2 weekly Jetstar A320 | 180 seats | 7 weekly ADELAIDE A U C K L A N D Domestic Aircraft Type Capacity (tonnes) Air New Zealand | 4 weekly) B789 | 302 seats (25 tonnes) B737 - 800 2- 3.6 B717 - 200 1 A320 1 • Freight capacity highlighted in blue is per direction • Typical Freight capacities are as per guidance from Virgin (A320, B738, A330-200), Qantas (A330-300), Finnair (A350) and Emirates (B777), as not all airlines give this guidance. Each airline will have a slightly different capacity • Jetstar does freight domestically but not internationally from ADL • Tiger does not do freight either domestically or internationally from ADL

South Australia’s total air freight carried was 32k tonnes (+6.6% y -o-y) and valued at $1.69 Billion for year ending Jun-18 Source: Australian Bureau of Statistics

South Australia’s total air freight carried valued at $1.69 Billion (+16.7% y -o-y) for year ending Jun-18 Source: Australian Bureau of Statistics

South Australia’s total freight value grew due to growth in both imports and exports for FY18 Source: Australian Bureau of Statistics

South Australia’s total exports grew from 15k tonnes in FY12 to 21k tonnes in FY18 while South Australia’s total imports grew from 9k tonnes in FY12 to 11k tonnes in FY18 Source: Australian Bureau of Statistics

South Australia’s total export value grew from $573m in FY12 to $746m in FY18 while South Australia’s total import value grew from $736m in FY12 to $941m tonnes in FY18 Source: Australian Bureau of Statistics

South Australia’s total freight value leakage decreased in FY18 to 32% ( -2% in comparison to FY17) Source: Australian Bureau of Statistics

100%? ADL SYD SA Freight 68% 32% Exported by Air MEL

The Direct Opportunity - $624 million exports - 14,302 tonnes - $21 million economic value pa ______________________ - An A380 = $31 million and 254 jobs

The Opportunity Triggers Price, availability, reliability International flights > Relentlessly pursue long haul wide body capacity from current and future customers 5 B-Double road freight connectivity > South Road, Richmond Road Fire rescue Airside freight infrastructure > Airport East Embedded Supply Chains > Compete with the scale of MEL and SYD consolidation

Master Plan & Airport East

2014 Master Plan > 2019/20 Master Plan 32

Legislative Requirements • Airports Act  New Master Plan to must be lodged with the Minister for approved by 9 January 2020 Legislative Changes  Airports Act (for all except the largest Australian airports) now the Master Plan to updated every 8 years  Adelaide Master Plan will be the first Airport Master Plan to under the new legislation  Adelaide Airport Master Plan will include; • 20 Year Planning Horizon • 8 Year Development Plan • 8 Year Ground Transport Plan • 8 Year Environment Strategy 33

Master Plan Steps • Phase 4 – Plan Preparation • Phase 1 – Scoping  Exposure Draft Master Plan • Phase 2 – Concept Planning • Phase 5 – Preliminary Draft  Concept Planning Workshops Engagement • Phase 3 – Investigations  Preliminary Draft Master Plan  Technical Studies  Public Exhibition  Aviation Forecasts • Phase 6 – Approval Process  Infrastructure Investigations  Draft Master Plan and Supplementary  Environment Strategy Report  Ground Transport Strategy • Phase 7 – Master Plan Deliverable  Land Use Plans  Final Master Plan 34

Where we are we now? • Phase 3 – Investigations  Detailed Investigations  Aviation Forecasts  Infrastructure  Environment Strategy  Ground Transport Strategy  Land Use Plan  Final Technical Report Submission 19 th February 2019  35

Key Master Plan Dates • Exposure Draft – 15 th April 2019  DIRDC Review (30 Business Days) • Preliminary Draft – 22 nd July 2019  Public Exhibition (60 Business Days) • Final Draft for Approval – 16 th December 2019 36

Next Steps for the Master Plan • Draft and Finalise Technical Report • Draft and Review Chapter Writing • Exposure Draft Preparation Next Steps for engagement • On-going discussions and technical working sessions with State and Local Government • Raise any issues throughout the process • Next Planning Coordination Forum in February 2019 – working session on the preparation of the Exposure Draft Master Plan • Presentations with State and Local Government prior to finalisation of the Exposure Draft (including updates to the ANEF Noise Contours) 37

Points of focus • Environmental sustainability • Improved access to and from the Airport • Noise impact management • Terminal expansion • Commercial development precinct • Freight strategy 38

ADELAIDE AIRPORT LIMITED 39 DRAFT