Question NW3939 to the Minister of Transport
18 November 2015 - NW3939
Van Dyk, Ms V to ask the Minister of Transport
With regard to the Airports Company of South Africa’s intention to increase its revenue from non-aeronautical services, (a) what partnerships (i) have been and (ii) will be entered into and (b) what are the (i) relevant details, (ii) time frames, (iii) timelines and (iv) deadlines in each specified case?
Reply:
The Airports Company South Africa SOC Limited (ACSA) has set a strategic objective to increase the contribution of non-aeronautical revenue to total revenue from 37%, as it currently stands, to 55% by 2020.
(a) All non-aeronautical opportunities at one of ACSA’s nine airports, such as retail and advertising opportunities, are subject to an open tender process to ensure that an open, fair, transparent and equitable approach is followed. ACSA does not enter into partnerships for non-aeronautical services other than when the Company bids for concessions outside the Company’s nine airports, where shareholder agreements have been entered into by the Company.
(i) ACSA has a shareholder agreement between with GVK (an Indian conglomerate with diverse interests across various sectors including airports, transportation and energy), and Bidvest, for the concession held by the Company in Mumbai, and Invepar (a Brazilian investment group, which operates in the transportation infrastructure segment in Brazil) for the concession held in Sao Paolo.
(ii) There are no definite planned partnerships which ACSA will enter into in the future.
(b) Presently, the Company has 10% equity holding in the Mumbai concession and a shareholder agreement was signed in 2006. Also, since February 2012 the Company holds 10.2% equity in the Guarulhos Airport, Sao Paolo. ACSA does earn consultancy fees from Guarulhos Airport, which is rendered directly by Company to the Guarulhos Airport.