The Netherlands Enterprise Agency (RVO) Airport Development Brazil – 18 February 2020
Agenda Welcome Nico Smid / RVO Opportunities in Airport Development & Infrastructure Brazil Marcelo Cantor / NAG Brazil “NEW MARKET” BUSINESS EXPERIENCE IN AIRPORT DEVELOPMENT Ben Hasselman / NACO RVO, a Short Introduction Nico Smid / RVO Fact Finding Mission Jörgen Leeuwestein / Embassy Brasilia Discussion on Next Steps Frank Jansen / NAG Network Drinks 2
Who is who What is your name? > What company do you work for? > Could you descripe your core business in 1 sentence? > Are you already active in Brazil? Yes/no >
AVIATION INVESTMENT OPPORTUNITIES IN BRAZIL
Introduction Video https://youtu.be/gxWkwh7Nwj0
Sector Overview Brazil is a continental-sized country, the 5 th largest country in the world having the 6 th largest population . Liberalization of domestic air fares since 2001 has arguably been considered as the linchpin of the increase in domestic flights from 31 million passengers transported in that year to 93.6 million passengers in 2018
Sector Overview As result of an “Open Skies” policy that has guided the negotiation of over 70 air service agreements since 2006, passengers on international flights grew from 10.8 million in 2006 to 24.1 million in 2018 , according to the National Civil Aviation Agency (ANAC).
Concessions Airport concession is part of a broader policy that seeks to increase the supply of air transportation services in Brazil. By auctioning in one and the same "combo" large and small airports, the government sought to ensure investments and good level of service for minors. With this, he believes that airlines will be interested in flying to those destinations.
More Airlines In the same strategy is the new law that allows the presence of up to 100% of foreign capital in Brazilian airlines. The Spanish Globalia, owner of AirEuropa, was the first company authorized to operate in this way. The government continues to attract airline companies to operate in the Brazilian domestic market. The intention is to increase competition, which may result in lower prices and better quality of services.
More Airlines
More Competitiveness
Greater Efficiency
Airport Expansions Brazil has great potential growth , particularly in terms of domestic connectivity and diversified direct international connections. In 2017, Brazil had 0,46 air trips per capita, while the OECD members had 1,71 (source: World Bank). 4th Busiest Domestic Route in the World: Sa ̃ o Paulo/Congonhas (CGH) – Rio de Janeiro/Santos Dumont (SDU), with more than 39,000 flights per year (source: Official Aviation Guide – OAG).
Lowering Costs There have been several governmental efforts as deregulation and taxation reduction in the sector toward the liberalization of the aviation market, such as: No restriction for foreign investments in Brazilian airlines; Deregulation of Passenger Baggage Allowance
Higher Profit The increase of Duty-Free allowance for international passengers arriving - from 500 to 1,000 USD. Hence, boosting the airports’ revenue generation; and The reduction of International Boarding fee by 18.00 USD.
Investments in Brazilian Airports Investments in airport infrastructure are key to meet the future air travel demands. Since 2011, Brazil has been granting some of Brazil’s major hubs such as Sa ̃ o Paulo GRU Airport/Guarulhos, Brasi ́ lia International Airport, and Rio de Janeiro Galea ̃ o Airport , along with 19 other important Brazilian airports.
Investments in Brazilian Airports From 2011 to 2018, a total of USD 3,86 billion was invested into the first 10 privately-managed airports. Overall, USD 9,14 billion is expected to be invested by the private sector during the course of the airport concession program, fostering the growth of the Brazilian airline market in the decades to come.
Brazilian Airports Concessions 2011 to 2019 5 rounds - 22 airports 144.2 M pax/year 67.1% Market share
Brazilian Airports Concessions
Brazilian Airports Concessions
Brazilian Airports Concessions
Supply chain in granted Brazilian Airports From the 22 airports under private management, we highlight potential business: Guarulhos Airport SP Fortaleza CE Congonhas SP Florianópolis SC Confins Belo Horizonte MG Porto Alegre RS Brasilia Airport DF Recife PE
Supply chain in granted Brazilian Airports
Business cases in Brazilian Airports Developers of smart solutions to enhance passenger experience and perception in ground Automated systems with proven methods to reduce passenger boarding process time Technologies to enhance cyber-security Biometrics IP based communication (software & hardware) Blockchain Cooperation Airport Assistance Apps
Business cases in Brazilian Airports Voice Recognition & Face recognition systems Known Traveler Digital Identity Interacting Systems to improve and facilitate passengers during ground routines. Control and management tools for aircraft in patio / taxing. Drug detection systems Environmental friendly Bird control Systems for simultaneously use of multiple runways
Investments in Brazilian Airports Investments in airport infrastructure are key to meet the future air travel demands. In 2020 another 22 airports will be granted to the private sector, including those in state capitals such as Curitiba, Manaus, and Goia ̂ nia. Airports like Sa ̃ o Paulo/Congonhas and Rio de Janeiro/Santos Dumont are expected to be auctioned in 2022, totaling to other 19 airports.
Investments in Brazilian Airports Overall, USD 9,14 billion is expected to be invested by the private sector during the course of the airport concession program, fostering the growth of the Brazilian market in the decades to come.
Investments in Brazilian Airports
6 Th Round of Airport Concessions
6 th Round of Airport Concessions
6 th Round of Airport Concessions The 6 th round of concessions is targeted for expansion, maintenance and operation of 22 airports, distributed in three blocks, to be granted by end of 2020. The concession of these 22 terminals is in line with the purposes of the National Privatization Plan (PND), the General Grant Plan (PGO) and the National Civil Aviation Policy (PNAC).
6 th Round of Airport Concessions Companies willing to apply to participate in one or more of the auctions for ‘round 6’ blocks shall contact ANAC to follow the routine of registration and receive the requirements and guidelines of the PND, PGO and PNAC programs.
7 th Round of Airport Concessions The 7 th round of concessions is planned for 2022 with 19 airports, it includes the airports of São Paulo Congonhas and Rio de Janeiro Santos Dumont, the “Jewels of the Crown” of the Brazilian airports, as stated by ANAC.
Santos Dumont Airport
Congonhas Airport
Concept Congonhas Airport
GET ON BOARD AND SEE WITH YOUR OWN EYES!
“NEW MARKET” BUSINESS EXPERIENCE IN AIRPORT DEVELOPMENT [BRAZIL CASE] Ben Hasselman – former Director Business Development NACO
NACO - Global Airport Consultants “1 - stop airport development shop” Independent consultant on full airport development life cycle More than 70 years of international experience Track record: over 600 airports worldwide Team of over 200 dedicated airport professionals Unique centralized and integrated knowledge hub in The Netherlands NACO is seeking long-lasting relationships with our clients.
Personal note Professional Background: • Technical University Delft - Architecture & Urban Planning Since 1980 – employed by NACO as: • Technical: Airport Architect; Airport Master Planner • Management: Managing Director; Director Business Development Retired 2016 • Involved as: Expert Witness / Testifying Consulting in Arbitration Brazil involvement since: 2010
Content PREPARATIONS SEQUENCE OF EVENTS ACHIEVEMENTS / SPIN-OFF LESSONS LEARNED
1 Preparations “Normal” Business Development 2010 Why interested in Brazil?: • NACO looks always for triggers/opportunities in “Future/New Markets” • Brazil is listed as one of the BRIC countries ( NACO already active in Russia, India and China ) • Brazil will host the 2014 FIFA World Cup Soccer in 12 cities ( NACO successful in SA ) • Brazil will host the 2016 Olympics Summer Games ( NACO successful in China ) • Brazil has spectacular growth rates in (air) traffic • Brazil has an underdeveloped airport network INTENTION/VISION: Brazil could become one of NACO’s (and DHV) “home countries”
1 Preparations – Exploration of the Brazilian Market RESEARCH: • Assignment given to University of Maastricht to prepare a Research Report for NACO and InterVISTAS: • Report has been used as starting point for the market reconnaissance • Desk research with the objective to get good picture of the aviation (infra)structure in Brazil FIRST CONCLUSIONS: • Large and interesting market • → how to manage? Huge country • → no Portuguese speaking staff in NACO! Language • → a challenge! Taxes
Recommend
More recommend
