The Herald

State weighs increased private involvement at major airports

Airports Company of South Africa commits R21.7bn for upgrades over five years

Planes parked at OR Tambo International Airport in Kempton Park, Johannesburg. Picture: Business Day/
Planes parked at OR Tambo International Airport in Kempton Park, Johannesburg. Picture: Business Day/Picture: Freddy Mavunda

The government is exploring ways to set aside parcels of land around the country’s busiest airports for future expansion plans.

This opens the door for the private sector to play a more active role in the planning and design of airports, a process that could include the addition of a concessioning model.

The National Airports Development Plan, developed by the department of transport and published on Friday, noted that the country has about 1,500 airports, including licensed, unlicensed and registered airports.

Of these, only 10 are designated as international airports, including the country’s marquee airports ― OR Tambo International Airport, Cape Town International Airport and King Shaka International Airport, all operated by the Airports Company of South Africa (Acsa).

Lanseria in Johannesburg is the country’s only privately owned international airport.

In what will be an appetising possibility for the private sector the airports development plan notes that there is increasing involvement of the private sector in the management and the financing of airports worldwide, in both developed and emerging markets.

It said these find expression in long-term concessions, which are being given to predominantly private companies to oversee operations as governments prefer less risks and shareholding.

“One of the initiatives for the next five years … is the exploration of potential mechanisms to involve the private sector in airport planning and design, including concession models, long-term leases with associated responsibilities for upgrading infrastructure and technical input from specialist infrastructure private financiers.

“It must be noted, however, that the potential privatisation of major airports will require special attention and approval from the appropriate authorities.”

South Africa’s main airports are managed and operated by the state-owned Acsa, which operates major airports. Private investors hold stakes in regional airports such as Lanseria and Cape Winelands, fostering competition and infrastructure development. However, about 86% of passenger volume is facilitated through the Acsa network, with transfer activity concentrated at OR Tambo.

With respect to airports outside the Acsa network, the biggest passenger volumes are found in Lanseria International Airport, Kruger Mpumalanga International Airport and, to a lesser extent, Polokwane International Airport and Pietermaritzburg Airport.

The airport development plan states that a wave of capacity upgrades took place in the build-up to the 2010 Fifa World Cup. Even so, physical capacity constraints have been identified at some airports.

“There are also various current and planned developments which could impact future airport infrastructure and facilities, ranging from construction of new airports to upgrades to equipment and facilities, at all sizes and levels of airports,” the plan reads.

“Where airports (in particular those in larger cities where land is a constraint and urbanisation and urban expansion rates are high) are expected to exceed their ultimate capacity in the next 40 to 60 years, provision should ideally be made to safeguard suitable land for the required additional airport, and the zoning around the area also needs to be aligned and contained in the spatial development frameworks to avoid encroachment of incompatible land use.

“In line with the National Infrastructure Plan’s planning horizon, any major infrastructure projects required within the next 20 years to address the capacity gap should be identified and reviewed every five years.”

In February Acsa announced plans to invest R21.7bn over the next five years to upgrade major airports, including OR Tambo, Cape Town and King Shaka. Key projects focus on terminal expansions, runway realignments, cargo facility upgrades and improved passenger technology.

The airport development plan also foresees some military airports being used for civilian purposes, such as Air Force Base Hoedspruit/Eastgate Airport.

The plan also notes worrying indications that smaller airports are being abused for illegal activities and says new strategies to combat criminal acts are being implemented.

“As security tightens at major airports with international port of entry designation, criminals are increasingly using light aircraft and targeting secondary and other smaller airports as well as helipads and airstrips for various types of illegal activities, such as transport of drugs, guns, tobacco, protected animal and plant species, as well as human trafficking and undocumented migration, it said.

“Discussions ... are under way within the security and border control agencies as to how to address this issue; however, available resources to monitor activity are likely to be a constraint.”