ACSA wins concession to manage South America's busiest airport

[Nostra]

Yet another benefit from the world cup. Seems though they overpaid, but at the rate Brazil is growing (have you guys seen how rapidly developing that country is), they must have thought it was worthwhile, plus they're eligible for state loans

SÃO PAULO—Brazil raised $14 billion in a privatization of three major airports, a bid to speed modernization of overcrowded hubs before the country hosts soccer's 2014 World Cup and the 2016 Olympic Games.

Investor groups including a Brazilian pension fund, private construction firms and airport operators bid for concessions Monday to operate the international airport in São Paulo, Latin America's busiest, as well as growing hubs in the capital Brasilia and in Campinas for up to 30 years. The concessions require the firms to improve the airports. The sale of other long-term operating licenses are planned.

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The airport serving São Paulo is among those being privatized.
.Officials said strong demand for the concessions reflected heightened investor interest in one of the world's fastest growing airline markets. Brisk economic growth and record low unemployment have created millions of entrants into Brazil's middle class. That in turn has spurred air traffic growth of double-digit rates, with demand jumping 16% in 2011 to about 180 million passengers.

But the country's airports are groaning under the rapid expansion of the domestic economy. "Chaos in the Air" has become a catch phrase for local news coverage of the long lines and delays that already plague the country's airports around holidays.

That has heightened concern that the country will be ready to receive travelers during the World Cup and the 2016 Olympic Games. Though President Dilma Rousseff's leftist party is against privatization, Ms. Rousseff is selling long-term operating licenses as a way to accelerate expansion plans. Brazil's airports are currently operated by the government's Infraero agency.

Contracts to upgrade and operate airports in the cities of São Paulo, Campinas and Brasilia were sold for a total of 24.5 billion Brazilian reais ($14 billion), more than four times the government's initial asking price, a reflection of strong demand for the opportunity to manage the infrastructure of one of the world's fastest growing airline markets.

"The result is a positive sign that this country is a place where investments are safe and profitable," said Wagner Bittencourt, Brazil's Civil Aviation Secretary, which oversaw the auction process.

Brazil opted last year to privatize several airports, and sold a small airport in Brazil's northeast. Monday's auction marks a major step forward.

The prize asset, the Guarulhos airport in São Paulo, was taken by Investimentos e Participacoes em Infraestrutura SA—or Invepar, a holding company made up of construction companies and some of Brazil's largest pension funds—together with Airports Company South Africa. The partners bid 16.2 billion Brazilian reais, considerably higher than the next bid of 12.9 billion reais, made by EcoRodovias Infraestrutura e Logistica SA and Germany's Fraport AG

http://online.wsj.com/article/SB1000...246033194.html

[dysan1]

lets see what this means for our own airports though. will all these international investments by ACSA get them to take their eyes off their local ones?

[Cigar]

Funding this might prove to be another super reason to increase airport taxes.

[TEBC]

Hi guys, That was the main news today: the fact that middle sized companies won the competition against the big ones like the one of Singapore Airport, Zurich and houston. I sensed some kind of prejudice about an African company paying so much for the airport, media doubts that they can afford the price they offered.

i cant stand this kind of thought. They have zero knowlodge about Africa. you guys have such better infrastructure than us, they couldnt be allowed to say such eresy.

Just hope ACSA do an amazing job, cause our airport is trash!!

[briker]

Acsa consortium awarded R70bn Brazil airport contract
8th February 2012

Airports Company South Africa (Acsa), together with Brazilian joint venture partner Invepar, won a R70-billion ($9.2-billion) concession to overhaul and operate the busiest and most valuable of three Brazilian airports, Guarulhos, in São Paulo.

“Acsa is pleased with the outcome of the competitive bidding process,” acting MD Bongani Maseko said on Wednesday.

The partnership would own 51% of the Guarulhos International Airport concession, with Brazilian State aerospace operator Infraero owing the remaining 49%. Acsa would provide airport management through a technical service agreement with the concession for twenty years.

The investment will be ring-fenced and will therefore not be funded by the South African aviation industry.

Some of the immediate tasks include preparing detailed operational plans for the 2013 FIFA Confederations Cup, the Pope’s visit for World Youth Day in 2013, the 2014 FIFA World Cup and the 2016 Olympic Games, all to be held in Brazil.

“This is a great opportunity for Acsa, as we realise that in order to grow the business, Acsa has to look beyond South African borders, particularly focusing on emerging markets such as India, Brazil and Africa.

“We managed to secure an opportunity in India a few years ago, we now have Brazil and are pursuing similar ventures in Africa. Winning the bid in Brazil will enhance Acsa’s brand and better position it in the marketplace as a significant participant in global airport investment and management services,” Maseko said.

Brazil’s Triunfo Participações and France's Egis Airport Operation won the concession to expand Viracopos Airport, also near São Paulo, with a bid of $2.2-billion, while Brazil's Engevix and Argentina’s Corporación America won the concession for a new airport terminal in Brasília, the country’s capital, with a bid of $2.607-billion.

The South African Ministry of Transport also congratulated Acsa on its achievement.

"The report card on infrastructure released by the South African Institution of Civil Engineering last year stated that South Africa's best performing infrastructure was its aviation infrastructure, which was awarded the report's only 'A'.

"Last year, the OR Tambo International Airport was named the best airport in Africa, and was also in the top three most-improved airports worldwide, at the World Airport Awards for 2010/11, held in Denmark,” Transport Minister Sibusiso Ndebele said in a statement.

Edited by: Creamer Media Reporter

[Awesome.e]

Well played

[cthighflyer]

Awesome, been there and its really not up to standard for such an important airport.
Good place to buy Havainas for cheap that about it.
Sure they will do a good job.