KLIA Aeropolis: Gateway to Asia
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1 KLIA Aeropolis: Gateway to Asia 5 October 2017 FIATA World Congress 2017
2 Malaysia Airports Today 5 INTERNATIONAL AIRPORTS VISION A GLOBAL LEADER IN CREATING AIRPORT CITIES MALAYSIAN OPERATIONS 16 DOMESTIC AIRPORTS 18 STOLPORTS SERVING 110AIRLINES 118MILPASSENGERS in 2016* *Passengers + Malaysia + ISG in 2016; Airlines = scheduled flights operating out of KUL + ISG as of March KTONNES CARGO *FYE2016: Malaysia Airports + ISG OVERSEAS AIRPORT INVESTMENTS IN TURKEY INDIA 1 st AIRPORT OPERATOR IN ASIA LISTED IN STOCK EXCHANGE RM10.05 BILLION MARKET CAPITALISATION As at AIRPORT OPERATOR GROUP LARGEST IN ASIA Combined with SGIA, Malaysia Airports group handles ~120 mppa WORLD S 14 th BEST INTERNATIONAL PASSENGER AIRPORT* #TOP9 AIRPORT SERVICE QUALITY 2016 in the World (>40mppa category)* *Airports Council International (ACI)
3 Transformation From A Pure Airport Play INFRASTRUCTURE PROVIDER ECOSYSTEM DEVELOPER 1990s SUBANG AIRPORT Passenger Centric Growth ~16 mil pax TODAY KLIA Leveraging on Strong Position to Capture Opportunities ~55 mil pax 2050s KLIA AEROPOLIS Enhancing Global Connectivity; Integrating Supply Chains; and Serving as an Engine of Growth ~140 mil pax KLIA AEROPOLIS 3 CORE CLUSTERS Evolving to be a complete, synergistic aviation ecosystem RM339bil in GDP cumulatively create additional employment ~200,000 by Y2055
4 KLIA Aeropolis 3 Core Clusters Aligned with National Agenda 2 ND NATIONAL AEROSPACE INDUSTRY BLUEPRINT 2030 Led by Ministry of International Trade and Industry, Malaysia LOGISTICS & TRADE FACILITATION MASTERPLAN ( ) Led by Ministry of Transport TOURISM NKEA AND KL TOURISM MASTER PLAN Led by Ministry of Tourism The Preferred Logistics Gateway to Asia National Logistics Task Force (NLTF) Strategic Action Items Create a multimodal transport and integrated logistics services Facilitate ecommerce growth KLIA Aeropolis Air Cargo & Logistics Key Pillars Operational Excellence Network Connectivity Attractive Business Location
5 KLIA Aeropolis- recognized as a National Priority Announcement on 23 Oct 2015: PM Budget 2016 Speech KUALA LUMPUR, Oct (Bernama) -- Malaysia Airports Holdings Bhd (MAHB) is pleased that the KL International Airport Aeropolis (KLIA Aeropolis) is recognised as a key priority in the Budget Managing Director Datuk Badlisham Ghazali said the airports operator had identified over 20 development projects covering hectares at KLIA and several other airports. "We estimate that both foreign and domestic direct investments will come up to RM7 billion over the next five years, commencing in 2016," he told Bernama. In tabling the 2016 budget today, Prime Minister Datuk Seri Najib Tun Razak highlighted that the KLIA Aeropolis Development is one of the measures to boost domestic investment activity. The KLIA Aeropolis would be centred on three development cluster aircargo and logistics, business and aviation parks, as well as meetings, incentives, conferences and exhibitions (MICE) and leisure. Prime Minister Datuk Seri Najib Razak presents the 2016 Budget at parliament, October 23,2015 Badlisham said these development clusters were perfectly aligned with the national agenda, namely, the National Logistics and Trade Facilitation Masterplan, by the Ministry of Transport and the National Aerospace Blueprint anchored by the Ministry of International Trade and Industry. The clusters are also in sync with the various National Key Economic Area tourism initiatives, of which, the recently opened Mitsui Outlet Park KLIA was a key catalyst to the KLIA Aeropolis, he added. BERNAMEFBP FBP AS23/10/ ST.
6 KLIA Aeropolis Masterplan Up To 2050 Total KLIA Land Area: 22,280 acre AEROPOLIS 9,015 acres AIRPORT & AERONAUTICAL 13,265 acres Gross Area: ~1,290ac Gross Area: ~450ac Gross Area: ~430ac MITSUI OUTLET PARK Gross Area: ~520ac Gross Area: ~440ac Gross Area: ~555ac Gross Area: ~1,140ac LEGEND: AIR CARGO & LOGISTICS AEROSPACE & AVIATION MICE & LEISURE
7 Air Cargo & Logistics Ambition Grow the Air Cargo Volume at KLIA c.650,000 tonnes) >3.5 mil tonnes by 2055 BUSINESS PARK AEROSPACE PARK AIRPORT CENTRAL KLIA LOGISTICS PARK 2 1 SHORT TERM (within 5 YEARS) FREE COMMERCIAL ASZ1 Tier 1 - Cargo Terminal Operators (CTO) Tier 2 - Freight Forwarders KLIA 2 1 AERONAUTICAL SUPPORT ZONE 1 (ASZ1) 2 MID TERM (3-10 YEARS) LOGISTICS PARK Tier 3 - Logistics & warehousing, RDC, Trucking Hub, Light manufacturing AIRPORT & AERONAUTICA L RESERVE 3 LONG TERM (>10 YEARS) 3 AERONAUTICAL SUPPORT ZONE 2 (ASZ2) INTEGRATOR ASZ2 Airline Forward Base Express Operators/ Integrators Aircraft Airframe MRO
8 1 Free Commercial ASZ1 (within 5 years) FREE COMMERCIAL ZONE (FCZ) PHASED DEVELOPMENT Over 200 local & international logistics service providers Future FCZ 90 acre Plot
9 2 Logistics Park (3-10 years) LIGHT MANUFACTURING Artistic Impression of the KLIA Aeropolis Logistics Park BUSINESS CAMPUS DISTRIBUTION CENTRES / MONOBRANDS Developable Area Estimated GFA Development by phases Global monobrand/ SME warehousing Light manufacturing Trucking hub Regional Distribution Centres Training Centres, Exhibition, Offices ~390 ac ~13.6m sqft Ph1: 150ac (5Y)
10 3 Integrator ASZ2 (> 10 years) Example of Benchmark Integrator hub INTEGRATOR HUB Developable Area Estimated GFA ~340 ac ~14.6m sqft Integrator Hub Key Drivers: a) ecommerce growth driver of cross border trade b) ASEAN Economic Community
11 KLIA Aeropolis- Attractive Business Location READY STATE FREE COMMERCIAL ZONE (FCZ) READY LOGISTICS ECOSYSTEM World-Class Operators: MASKargo and POS Aviation Top 4 worldwide integrators e.g DHL, Fedex 20 out of the Top 25 global freight forwarders e.g. Schenker, Agility, Nippon BUSINESS FACILITATION SERVICES FCZ Authority to maintain and operate the free zone MA (Sepang) Customs facilitation at KLIA - Ease of doing business - Seamless clearance operations
12 DFTZ- A Game Changing Opportunity for Malaysia YAB PM s First Meeting With Jack Ma in Beijing (4 November 2016) The Government will introduce the first Digital Free Zone in the world. It will merge physical and virtual zones, with additional online and digital services to facilitate international ecommerce and invigorate internet-based innovation. Honourable Prime Minister Najib Razak DFTZ Launch in Kuala Lumpur (22 March 2017) 4 MoU s signed during launch: Malaysia Airports- Cainiao Network CIMB- Maybank- ANT Financial MDEC- Catcha Group MDEC- Alibaba Group
13 DFTZ- Vision and Objectives Vision Key Objectives DFTZ is the ecommerce window to the world for SMEs and the preferred gateway of choice for global brands and marketplaces into ASEAN To enable export of Malaysian SMEs To position Malaysia as a regional hub for ecommerce logistics ~1,500 Malaysian SMEs to be onboarded by end of 2017 Double growth rate of SME s goods exports to US$38 Billion by 2025 Create 60,000 jobs by 2025
14 DFTZ - Process Improvement OBJECTIVE To accelerate end-to-end turnaround time for cargo in DFTZ Air PILOT How is Malaysia achieving this? PROCESS IMPROVEMENT TASKFORCE Targeted Outcomes 1 2 Border Clearance 6 hrs to 3 hrs CTO Operations 4 hrs to 90 min Sea Land MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY Joint Chair
15 DFTZ- Investments & Business Opportunities Logistics Companies MonoBrands SATELLITE SERVICES (Kuala Lumpur) E-FULFILLMENT HUB (KLIA Aeropolis) E-SERVICES PLATFORM (Virtual) E C O S Y S T E M Fashions Sports Household goods Foods e-marketplace & Market Expansion Companies Platform companies Cosmetics Electrical & Electronics Operational Supporting Services Healthcare Infrastructure & Supporting Services Warehouse Fitting & Construction Autoparts Financial Services Freight Forwarders Other Government (foreign) links Trade Assurance and many more..
16 DFTZ- Development Phasing Plan at KLIA Aeropolis DFTZ Pilot Phase ( ) Pos & Lazada (within 20 acres- part of former LCCT) Operational start date- 2 Oct 2017 Infrastructure & FCZ expansion completed- 15 Sept 2017 Phase 1 (2018 onwards) Cainiao- MAHB Expected to increase total cargo volume Also includes increase in transhipments Activities with E-fulfilment hub ie; Cargo Terminal, Fulfilment Centre, Sorting Centre, Warehouse Note: ASZ1 = Aeronautical Support Zone 1 FCZ = Free Commercial Zone Phase 2 (2022 onwards) Future expansion Activities within Logistics Park will include: Regional Distribution Centres for global monobrands eg. Nike, Adidas, Sony etc Multimodal Transportation Hub for logistics services by Air, Rail, Sea and Road Normal/bonded Warehouses- eg: for products by SMEs Value added activities, light-manufacturing, & assembly
17 Roadmap towards ambition as ASEAN s Regional Hub 1 KLIA as the Regional Gateway for ASEAN and Oceania 2 to be Global Fulfilment Centre 3 to be Regional Multimodal Transhipment hub - includes Land, Rail and Sea freight ie: KLIA as a hub beyond just Air freight 4 Adoption of technology & Big Data Analytics (BDA) - driving world class performance & service levels 5 KLIA as first E-commerce hub outside of China & only regional hub within ASEAN, part of ewtp vision
18 Malaysia- ASEAN s Gateway to Global Connectivity 1, Flights Weekly to Southeast Asia AFRICA 10 flights/week Source: SHORT-MEDIUM HAUL SOUTHEAST ASIA 1st in Top 25 Low-Cost Megahubs 9th in Top 50 International Megahubs RANK AIRPORT COUNTRY RANK AIRPORT COUNTRY 1 KUL Malaysia 1 LHR UK 2 CGK Indonesia 2 FRA Germany 3 SIN Singapore 3 AMS Netherlands 4 DEL India 4 ORD USA 5 LAX USA 9 KUL Malaysia
19 Transhipments- Catalyst for Regional Multimodal Infrastructure and Connectivity By Road CROSS BORDER Connected via 5 major expressways* By Rail Connected to over 300km* of integrated rail network Development of High Speed Rail between KUL-SIN Planned High Speed Rail (HSR) presents cross-border opportunities IN OPERATION: 2026 By Sea Sea to Air Transhipment via Bonded Trucking *At maturity Impetus for the National Transport Plan Aligned with National Logistics and Trade Facilitation Masterplan (NLTF), led by MOT
20 THANK YOU
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