ADB to make first foray into China's airport business
Updated: 2008-01-05 11:03
Experienced foreign operators focus on large airports in the coastal region to create synergies with their existing operations and minimize investment risks. As a result, potential investors and operators of small- and medium-sized airports are likely to come from the domestic side of the industry. But local industry members are typically new with limited financial resources, and this constrains their capacity to develop a large number of projects. Priority needs to be given to qualified local investors, particularly in the central and western regions, said the bank.
"The country currently has the second largest civil aviation market in the world, after the United States. The demand for travel, for both work and leisure, is projected to increase at an unprecedented pace due to increased labor movement flexibility and disposable income growth," said the specialist.
China's air passenger transportation throughput, measured in revenue passenger-kilometers, will grow 8.4 percent annually during 2007-2026, while air cargo transportation turnover, measured in freight ton-kilometers, will increase at an annual rate of 10.5 percent, ADB said.
As of the end of 2006, the country has 146 civil airports in operation. The government's 11th Five-Year Plan (2006-2010) requires the construction and expansion of some 60 airports, mostly in the western region. Some $17.7 billion in capital expenditure is needed for civil airports under the 11th Five-Year Plan.
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