AIRPORT CITIES

IMPLEMENTING THE STRATEGIC PLAN - KUALA LUMPUR, APRIL 2 2014

Stream A, Session 3

Paul Neal, Principal, Strategic Project Development Parsons Brinckerhoff

Alignment of Local & Regional Governance Structure

Ability To Pass Legislation

The Importance of Supporting Infrastructure

Access To Finance

Presence Of A Skilled & Experienced Workforce

We’ve Identified 5 Key Enablers for Successful Implementation

The Key Stakeholders in the Governance Structure Must be Aligned

5 Key Stakeholders In A Typical Governance Structure • The Airport - Acts As The Primary Hub For Economic Development • The Principal City/Community Anchoring The Region • Neighboring Communities • Support Agencies • Business & Commercial Partners

(1.1) Co-Ordinated Local & Regional Governance Structure

The Airport Is Typically Responsible For

– Working With Airlines To Develop A Comprehensive Route Network

• Range Of Key Business Destinations & • Frequency Of service • Works To Promote The Accessibility & Connectivity That Aviation Enabled

Business Demands

– Development Opportunities Up To The Airport Fence Line

• Includes Direct Aviation Related Land Use • Plus Development of Airport Land for Related Economic Activity

(1.2) Governance Structure - Airport

Professor J. D. Kasarda The 3’s

Accessibility, Accessibility, Accessibility

Principal City/Municipality

– Assumes Regional Leadership Role

– Establishes Forum For Multi-Agency Participation

– Promotes Business and Commercial Development

– Acts on a National & International Stage

– Can Empower Airport to Act Entrepreneurially e. g Financial Enhancements to

Airlines Develop Route Network

(1.3) Governance Structure – Principal City/Municipality

Manchester Town Hall Picture: Courtesy of Wikipedia

Typically More Than One Community Surrounds An Airport

– Can Complicate Governance Structure

– Airport Ownership/Location May Differ

– Requires Greater Working Together

– Determines The Shape & Form of Development Beyond the Airport Perimeter

May Require Multi-Community Forum To Align Objectives

Concerted Effort Required To Optimize Urban Planning

(1.4) Governance Structure – Neighbor Communities

Supporting, But Essential Agencies In The Governance Structure

– Transportation Agencies • Essential To Coordinate The Multi-Modal Corridors Required For Freight &

Passenger Movement

– Economic Development Agencies

– Other Resources Required By Industry and Commerce • Power • Water

– Environment & Sustainability

Business Partners

– Real Estate Developers

– Land Owners

– Investors

(1.5) Other Agencies & Business Partners

Multi-Agency Cooperation Between Landowners, Developers, Investors, Infrastructure Providers & Public Stakeholders Is Essential

Working In Isolation The Airport And the City & Regions It Serves Will Not Remain Competitive

Conclusion - Governance Must Be Collaborative

Supports Governance Structure & Stakeholder Relations Enables Land Acquisition Builds Infrastructure Remove Barriers to Progress/Dispute Resolution

(2) Ability To Pass Legislation

Remember The Importance of the 3 A’s

Airport Capacity

– Runway, Taxiway, Apron

– Terminal, Gate

– Maintenance, Catering, Service Facilities

Airspace Requirements

– May Have National, Even International Implications

(3) Infrastructure Requirements – Air Transportation

Multi-Modal Access Is Essential • Highway • Rail • Port – Sea/Lake

Transit Arteries Become Development Corridors

(3.1) Infrastructure Requirements – Airport Access

Passenger Rail • High Speed Rail/Inter-City • Metro & Transit • Airport Express - ‘One Seat Ride’ to CBD • Integrated Air//Rail Terminal

Freight Rail To Serve Logistics/Cargo Hub Clusters

(3.2) Infrastructure Requirements – Rail Airport Access

www.iaro.com

Business – Free Trade Zones

– Inland Ports

– Accelerated Customs Clearance

– Tax Incentives

– Knowledge Transfer

(3.2) Infrastructure Requirements – Business Enterprise

Technology

– High Speed Internet

– Technological Support

– Skilled Workforce

Traditional Funding

– Public Grants & Loans

– State & Local Tax Revenue

In the U.S Programs Administered By The FAA Have Historically Funded Airport Capital Projects

– Typically Restricted to ‘On-Airport’ Development

– Insufficient To Meet On-Going Infrastructure Needs

– Challenges Airports To Look For New Options For Financial Support For Capital

Improvements and Expansion

(4.1) Access To Funding – Public

In Response To Limited Public Funding, Airports Are Increasingly Looking Towards Innovative Financing & P3 Opportunities

– Leverage Private Finance From Traditional Revenue Streams, e. g. Landing

Fees, Airport Terminal Retail, etc.

– Real Estate Funds

– Investment Funds

– Sovereign Wealth Funds

(4.2) Access to Finance - Private

Aviation Enabled Industry Requires Access To Skilled And Experienced Workforce

– Universities

– Training & Research Centers

Workforce Requirements

– Accessible, Affordable, Quality Housing

– Schools

– Leisure & Retail

– Access To Open Space, Parks & Recreational

(5) Availability of Local Workforce

For more information contact:

nealpj@pbworld.com +1 202 370 2916

Paul Neal Principal, Strategic Project Development Parsons Brinckerhoff Washington D.C USA

International Air Rail Organization www.iaro.com