Public Private Partnerships for Sustainable Tourism Growth - Spotlight on Airports. Dr. Michael Kerkloh World Tourism Forum, March 3 rd 2018

Transcription

1 Public Private Partnerships for Sustainable Tourism Growth - Spotlight on Airports Dr. Michael Kerkloh World Tourism Forum, March 3 rd 2018

2 PPP-models are popular in the airport industry for two strategic reasons Exit or Entry PPP as an Exit Strategy Investment capitalization & persumed inefficiencies PPP as an Entry Strategy Missing money and/or missing skills

3 PPP-models are popular in the airport industry for two strategic reasons Exit or Entry PPP as an Exit Strategy Investment capitalization & persumed inefficiencies PPP as an Entry Strategy Missing money and/or missing skills

4 Missing money and missing skills are the main reasons for public entities to start an airport in a PPP-model Missing Money Missing Skills High primary investments in classic infrastructure (terminal, apron, runway, etc.) and digital suprastructure (guiding systems, data centers, positioning systems for autonomous vehicles etc.) Shortages in local labour markets Missing or incomplete educational system (esp. in developing countries) High secondary infrastructure requirements (roads, trains, utilities, etc.) Highly regulated qualities through worldwide regulation High costs of capital due to uncertainty and time lagged capacity utilisation High initial investments to set up a Greenfield Airport High demand for specialized skillsets to manage the complex Airport Eco-System

5 PPP-models are widely spread, with regional differences Half of the world s busiest airports are PPP-models Europe has largest propensity for PPP More than 1/3 of Pax traffic is at private airports

6 Airports Characteristics Model Participation of the private sector in the management, financing and/or ownership of airports Public full government ownership PPP (e.g. concession or lease) Private full private sector ownership Full control by Civil Service and Politics Full control to maintain the safety and integrity of the national air transportation system Transfer of operations to private sector bring additional flights to the airport draw more freight traffic by offering lower fees or improved facilities earn additional lease revenues by improving amenity offerings such as shopping and dining Build-operate-transfer (longterm arrangement) Transfer of ownership to private sector Public service obligations are out of focus Full privatization might risk closures of destinations or airports Might reduce aviation system capacity or favor certain airport users over others Munich / Denver / Singapore FRAPORT / Rio / Airports of Thailand ANA / Domodedovo / London City 6

7 Challenges for PPP-models are partly conflicting interests of public & private stakeholders Central stakeholder groups Main Public Objectives Long-Term orientation Focus on societal goals such as global connectivity, stimulation of tourism and employment Access to specific know-how Speed-boost in development through scalability Main Private Objectives Short- & Medium-Term orientation Focus on stable and attractive returnon-invested-capital Right to a say in strategic matters and planning security

8 Is Sustainability a way to solve conflicting interests within PPP-models?

9 Is Sustainability a way to solve conflicting interests within PPP-models?

10 We believe so - At Munich airport we try to facilitate cooperation-based sustainability practices Industry Innovation Infrastructure International business to transfer know-how & support of developing countries Crowdsourcing with customers & employees LabCampus for regional, international corporations & start-ups

11 Based on our lessons learned there are three key success factors to make PPP work Honest Multi-Stakeholder-Dialogue on a level playing field takes time and patience, but increases the acceptance & therefore the overall success probability of big infrastructural projects Focus on long-term-oriented and risk-averse investment-partners to minimize the conflict potential resulting from short-term profitability reducing effects of sustainability issues Shared broader view on the value of airport s economic activity of all involved stakeholders beyond the pursuit of financial profits

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15 Since 2010: company health management system Occupational safety Noise protection: test stations, noise protection website, landing fees For many years: own Airport Academy Educational offer: 20 vocational training programs + dual degree programs, 300 apprentices Women's quota: established in 2015 Cross Mentoring Program

16 In the power station: use of near surface quaternary groundwater (utility water) for the terminals' cooling system Utility water comes from own drilled wells Oils & fuels: collected and disposed in of in an environmentally safe manner De-icing agent: collected and recycled 2 own block heat and power plants generate around 70% of the Airport power requirement Heating and cooling requirements are partly covered by the waste heat of the power generation process Assessment of 4000 suppliers under criteria: quality and environmental standards, delivery reliability, service and price development Second largest employer at the site, fair wages

17 Existing buildings refurbishment to improve energy efficiency, CO 2 reduction New buildings: 40% less energy consumption compare to existing buildings, innovative construction technology (e.g. double facade in Satellite) Creation of living space for employees Waste 2 pillars: Avoid Preparation for reutilization Recycling Waste disposal CO 2 -neutral-growth (reference year 2005) As of 2030: CO 2 - neutrality Achievement targets: 60% reduction using technical measures, 40% offset

18 Compensation and replacement areas in the surroundings: approx. 720 hectares Central relevance for Munich Airport ecological involvement, which offer a high-quality living space for bird and plant species. 70 experts globally advise airport operators and governments in the fields of airport planning, operation and management HUBs cooperation: 40% LH, 60% FMG Not yet defined: Relevance due to building of a new business park on campus in the Airsite West Mobility as a sevice Intermodal HUB

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