CHINA AVIATION NEWS arrow Shanghai Airport reports profit growth, despite big investments in massive new facilities at Pudong

Shanghai Airport reports profit growth, despite big investments in massive new facilities at Pudong

11-Mar-2008
Airport Code [SHA]  View More SHANGHAI HONGQIAO APT News
Shanghai Airport reports profit growth, despite big investments in massive new facilities at Pudong
Shanghai is this month opening new facilities that will make Singapore’s Terminal 1, Beijing’s new Terminal 3 and Heathrow’s Terminal 5 look small by comparison.


Pudong International Airport is making final preparations for the opening of its massive new Terminal 2 (T2) on 26-Mar-08 that has capacity for 40 million passengers p/a, to raise the airport’s total capacity to 60 million and the Shanghai system (including Hongqiao) to around 80 million.


But the mind-boggling scale of this development does not stop there. Two more runways and a third passenger terminal are planned at Pudong by 2015 to boost capacity to 80 million passengers and 6.0 million tonnes of cargo p/a. The development of the downtown Hongqiao Airport is also progressing, with a new runway and terminal to be completed before 2010, raising capacity to around 30 million passengers p/a.


So, by 2015, Shanghai's two airports will have a combined capacity of around 110 million passengers p/a. Ten years ago, prior to Pudong's opening, Hongqiao Airport had an annual throughput of 13.3 million passengers.


These two developments will ensure Shanghai joins in the ‘major league’ of airport systems with capacity above 100 million passengers p/a next decade which will include London, Paris, Chicago and New York, as well as fellow new-entrant, Dubai/Jebel Ali.


Carriers are scheduled to commence moving into Pudong’s T2 over two phases in the next two months. On 26-Mar-08, 15 carriers, including British Airways, Shanghai Airlines, Northwest Airlines, Virgin Atlantic will move into the new facility, while 16 carriers, including Air Canada, Finnair, Air China, Cathay Pacific, China Southern, ANA, Singapore Airlines and United Airlines will make the move on 29-Apr-08.


The airport will simultaneously commence operations of its new 3,400 m third runway when the new T2 opens.


Meanwhile, Pudong’s West Cargo Handling Area project completed a key testing phase on 27-Feb-08, following the recent completion of the new public terminal area. The West Cargo area is one the three key projects of the airport’s current expansion project, and will commence operations in 1H08.


The 410,000 sqm public cargo terminal, which started construction in December 2006, has ten parking aprons for freighters and is equipped with seven of the world’s largest elevating transfer vehicles.


The public terminal sits within the massive 1.67 sq km West Cargo precinct includes an apron large enough to handle 38 freighters, providing total capacity to handle 1.2 million tonnes of cargo per year and will provide some relief to facilities that are running at full capacity.


Future developments in the West Cargo include the Asian hubs of UPS and DHL. The UPS transfer centre first phase project covers 96,000 sqm and is scheduled of completion in the end of 2008. Meanwhile, DHL’s North Asia hub Phase I project covers 88,000 sqm and is scheduled to commence operation in Oct-10.


Pudong Airport handled 2.51 million tonnes of cargo in 2007, up 12.6% year-on-year, making it the fourth largest cargo airport globally – taking over from Incheon Airport.


Thanks to strong rates of traffic growth, the listed unit of Shanghai Airport Authority, Shanghai International Airport Co Ltd reported a net profit of USD236.8 million in the 12 months ended 31-Dec-07, up a creditable 12% year-on-year.


Full-year revenue growth slowed to +6.2% to USD439.3 million (after a first increase of 7%), while operating profit rose 11.2% to USD272.2 million. Net profit growth in the first half of 2007 was 13%.


(c) Centre for Asia Pacific Aviation. Date posted: 11-Mar-08

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