1. ADVERTISING FEATURE
AIRPORTS
24th SEPTEMBER 2008
Kommer Damen knows the impor-
tance of staying well positioned for
the next breaking wave.The
Chairman of Damen Shipyards
Group is carrying on the legacy built
by his father and uncle, who founded
a single shipyard in the Netherlands
in 1927.The group pulled ahead of
its competition in 1969 by introduc-
ing standardised designs to its ship
manufacturing operations that guar-
anteed well-proven vessels, very
short delivery times and competitive
prices.As the trade winds eventually
turned, and the tide of inexpensive
labour in Asia and other developing
economies rose at an unprecedent-
ed pace, the immense Dutch ship-
building group faced a flooded mar-
ketplace.
The widespread distribution of
government subsidies further
swelled the market and created a
perfect storm that tilted the playing
field and left some European ship-
yards scrambling to compete.That
is where Mr Damen charted the fu-
ture of his family’s namesake in the
development of high-tech ships
that can serve the very precise
needs of military and the oil indus-
try, while producing fast ferries,
luxury yachts, and dredgers for a
range of customers.
“This technology is not easy to
transfer to low-cost countries.You
have to develop to be ahead,” says
Mr Damen, alluding to the impor-
tance of proprietary R&D.“As well
as high-tech ships, we build simple
cargo vessels, which are increasingly
built in the Far East and Eastern
Europe.”
Despite its positioning as one of
Europe’s major shipbuilding groups,
which offers products and services
in over 30 shipyards and related
companies while passing its
economies of scale along to cus-
tomers, the Dutch group’s manage-
ment has shown it can steer toward
success and avoid sinking into slug-
gishness.
Mr Damen himself is acutely
aware of the unenviable odds of
cruising into the gargantuan wave of
cheap, available labour in an increas-
ingly globalised economy.“There is
so much difference between labour
costs here and those in developing
countries that you cannot bridge
this – ever,” he comments.This is
why he is leading the group toward
investments in training in order to
face the current labour crisis, as well
as more efficient technologies that
address surging oil prices and envi-
ronmental concerns.
I From high-tech luxury and
military ships to dredgers and
cargo vessels, Damen hones
its competitive edges with
technology and training
Shipshape
Dutch team
stays ahead
with R&D
PORTS&
The world's seaports and ship-
yards have been key to economic
development for millennia,and since
the invention of the airplane,airports
have also become vital to spurring
growth and spreading wealth in the
cities and regions they serve.
Seaborne trade around the world
has grown tremendously since 2000,
rising to a record level of 7.1 billion
tons in 2005,according to theWorld
Trade Organisation,while during the
same period the number of interna-
tional air passengers grew by 5 per
cent annually, despite disruptions
caused by the September 11, 2001,
terrorist attacks in the US and the
SevereAcute Respiratory Syndrome
epidemic in 2003.
The tourism industry is among the
most important in Europe, which is
the home of the world's top two
destination countries, France and
Spain,and also had four other coun-
tries in the top ten in 2006.
Governments are aware that airports
often give travellers their first im-
pression of a country and city, and
many have invested huge amounts of
money to improve that first experi-
ence, and increase efficiency at the
same time, as the new terminals at
Madrid's Barajas and London's
Heathrow airports demonstrate.
Just as airports have permitted
people to travel more quickly and
efficiently around the world, the
containerisation of seaports and
the setting up of regular container
ship routes have revolutionised the
sea shipping industry in the past
several decades by cutting costs
dramatically.
Europe's shipping companies are
among the world's most efficient and
competitive, and are also, in aggre-
gate,the world's biggest.Its shippers
represented 41 per cent of the glob-
al merchant fleet in 2006, accord-
ing to the European Communities
Shipowners' Associations annual
report.
With sea shipping gaining in im-
portance year after year, the work
of Europe's shipyards is also adding
more to the local economy.
Members of the Community of
European ShipyardsAssociations to-
gether represent about 20 per cent
of world shipbuilding capacity.They
directly employ more than 100,000
highly skilled workers,and indirect-
ly generate at least three times as
many in associated businesses.
As the globalisation of the world's
economy has increased, seaports,
shipyards and airports have become
ever more important. Our modern
transportation infrastructure has
changed the lives of literally billions
of people,allowing tourists to reach
previously unheard of destinations,
putting fresh roses from Ecuador
into Valentine's Day bouquets in
New York and permitting the dis-
tribution of low-priced merchan-
dise from Asia's factories to house-
holds around the world.
Globalisation of the world’s economy has
spurred greater air and sea traffic along
with modern infrastructure development
Investment
in infrastructure
New wave transit connections
Inside the striking new Terminal 4 at Barajas airport in Madrid
Kommer Damen, Chairman of
Damen Shipyards Group
Photo:Aena
Distributed with The Daily Telegraph.
AERO-PUERTOS 340 x548 mm.qxd 16.09.2008 16:34 Página 1

2. ADVERTISING FEATURE
PORTS&AIRPORTS2 24th SEPTEMBER 2008
I NTN’s business
has quadrupled
in size by
providing global
transport solutions
with local attention
to detail
Despite the exuberance
displayed by Norwegian
Transport Network
(NTN) CEO Kjetil Abo
as he courts new oppor-
tunities for Norwegian
Transport Network as far
as China and India, he is
adamant that a local fo-
cus is the key to success
on the motorways of the
sea.
“Instead of having the
target for our company to
centralise all our activities
in one big hub,or one port,
we are doing the oppo-
site, we are working with
the local industries
through the local ports,”
says Mr Abo, whose NTN
group has quadrupled in
size between 2004 and
2006. “By doing this, we
avoid the trucking and the
handling over the country.
Our aim is always to find
the most effective trans-
port in and out of the
country.”
While NTN’s 49 sub-
sidiaries and 500 employ-
ees are spread across ten
countries and more than
150,000 square metres of
warehouse space,each has
kept its local brands their
close relationships with
local port authorities.
Beyond NTN’s pin-
pointed approach emerges
the buying power and
time-tested expertise of
the unified group of com-
panies that bloomed out
of a merger of five
Norwegian companies
during the nineties, the
oldest of which was found-
ed in 1842. Those effi-
ciencies also allow NTN to
decrease the footprint it
leaves on the seas and the
environment,and sharpen
its competitive edge.
Last year, NTN’s mo-
mentum pushed it toward
a partnership with Tschudi
Shipping Company to cre-
ateTschudi Lines North Sea,
a short sea container line
that is capitalising on grow-
ing shipping opportunities
between Norwegian ports,
Rotterdam,and the United
Kingdom.
‘We find the most
effective transport’
Kjetil Abo,
CEO of NTN
I Diversification is
the key to
sustained success
for the Italian
maritime and
terminal operators
Known for its precise and
speedy service, Genoa-
based Finsea can speedily
move cargo from its port
space to all inland desti-
nations. In fact, the Italian
holding company hauls the
most cargo of all Italy’s
shipping agents.
The enterprise’s ship-
ping and logistics activi-
ties span the maritime
field, from tramp and lin-
er shipping to custom bro-
kerage, logistics and ter-
minal services.
The Genoa-based firm
recently partnered to of-
fer passenger and hotel
services. Plus, there are
plans to boost terminal
space, largely to accom-
modate increasing import
cargo arriving from Asia.
“We are doing a lot,”
comments President Luigi
Negri. “For example, last
year we moved around
420,000 deals in our role
as shipping agents. Every
year we improve our busi-
ness in Italy.”
According to Negri,the
company’s operations have
improved steadily since
port services were priva-
tised in the early 1990s.
“Our dream is to have our
own trains and railroads,”
he adds, “especially fol-
lowing EC regulations that
state the railway system
here should be privatised.”
Finsea: Italy’s
logistics leaders
Studies by climatologists at
anAmericanuniversityhave,
in the past,suggested that Las
Palmas de Gran Canaria,joint
capital of the Canary Islands
along with Santa Cruz de
Tenerife, has the world’s best
climate.Averagetemperatures
hover at a comfortable 25ºC
during the summer months
and fall no lower than 15ºC in
winter, making this city of
400,000 inhabitants a popular
destination for tourists.
Las Palmas, however, is not
only a city with a rich cultur-
alsceneandabustlingtourism
sector, which consistently at-
tracts visitors who want to
spend some well deserved
leisure time enjoying its at-
tractions.This city is a key lo-
cation for intercontinental
trade thanks to its position at
the crossroads between
Europe, Africa and America.
Whilefiguresfortradein2008
arelookingpromising,thecity’s
port authority hopes,through
its ambitious development
projects, to further reinforce
Las Palmas’ role as centre of
the four cardinal points.
Connected to ports in 180
countries, Las Palmas has the
innate international outlook
of a city that understands its
economicstabilitydependson
far more than domestic de-
velopments.That’swhythecity
councilislookingtoAsiaasthe
next big import-export part-
ner.
MayorofLasPalmasdeGran
Canaria, Jerónimo Saavedra
Acevedo,is aware of his city’s
eastern aspirations:“I think it
is very good that the port of
Las Palmas has, over the past
few years, been developing a
policy of contacts, exchange
and meetings of port opera-
tors with Shanghai.”
SomeCanaries-basedcom-
paniesarealsosettingupAsian
outfits to maintain this care-
fully nurtured relationship.
Their understanding not only
of Asian markets’ interests in
emerging African nature, but
also of their own competitive
advantages in this new eco-
nomic situation, means that
traders who benefit from the
theirislands’strategicposition
arenotrestingontheirlaurels.
So far in 2008, the port of
Las Palmas has seen increased
traffic,confirming its interna-
tional reputation.The amount
of merchant ships passing
through the port inApril 2008
was up almost 6 per cent on
figures from the same month
last year and total traffic
through the port also enjoyed
a 9 per cent increase. Fresh
and frozen fish,general mer-
chandise and container car-
go all pass through Las Palmas,
coming from countries both
near and far to the island,sit-
uated to the west of the
Moroccan coast.
Plans are also under way to
develop the port.The Canary
Islands Special Zone is being
set up to complement the al-
ready established free trade
zone at Las Palmas port.The
Canary Islands Economic and
Fiscal Regime, applicable in
these special trading areas,
allows investors to enjoy
favourable conditions on in-
vestments,which include tax
exemption and a reduction
in stamp duty,and gain access
to smoother investment
processes.
These economic benefits
are not the only changes tak-
ing place. Plans to implement
a major urbanisation project
intheLaIsletaisthmus,anarea
of the port, are currently be-
ing reintroduced after having
come to a halt due to politi-
cal issues in recent years.
Now, fresh momentum is
behind the project and a pub-
lic tender will be announced,
requesting the ideas of archi-
tectsworldwideforsolvinglo-
gistical challenges facing the
port due to its limited space.
The intention is that efficient
planninganddevelopmentwill
allow for an increase in the
amount of container space,
thus encouraging a further
growthoftrafficandimproved
efficiency. There is a general
political consensus that a
wholistic approach to urban
development has to be taken
too. In other words, as Mr
Saavedra suggests,“You don’t
have to only fix the posterior
stretch of the isthmus, we al-
sohavetorequesttendersfor
thedevelopmentofeverything
on the sea front.” Change and
modernisation are on the way
soon.
Las Palmas does not, how-
ever,only respond to changes
in its own urban and logistical
needs, as has already been
shownthroughitsgrowingre-
lations with emerging Asian
economies. Recent discover-
ies of oil and gas in neigh-
bouring Mauritania,for exam-
ple, have drawn the city’s at-
tentiontothechangingnature
ofitslocation.AspartofSpain
and thereby a member of the
EU, the Canary Islands have
enjoyed greater development
and prosperity than their
NorthAfricanneighboursand
have therefore been able to
offergreaterefficiencyasahub
forinternationaltrade.Thedis-
covery of energy resources in
NorthAfrica,at such a fragile
time for global energy mar-
kets, however, has made Las
Palmas think twice about its
current competitive edge.
Mr Saavedra is aware of the
effectthatdiscoveriesincoun-
trieslikeMauritaniacouldhave
on their economic develop-
ment: “We have to forecast
that in 20 or 30 years, the
povertythatmostofthecoun-
tries ofWestAfrica have now
willlessenandtherewillbere-
fineries, more consumerism,
more traffic and even more
commerce.”
The mayor sees that Las
PalmasandtheCanaryIslands
in general will have to fight to
maintain the current position
as the favoured trading hub in
North Africa.“This has to be
aconcernforthemanagement
of our ports in terms of our
competition and making sure
the great producer and seller
ofthenextdecade–thatisAsia
and in particular China – ori-
entate themselves in this di-
rection and don’t go to other
continentalAfrican ports,” he
remarks.
It is also important that, in
order to maintain its interna-
tional reputation, Las Palmas
must maintain its high quality
standards and respect for the
environment on the island.
Potentialcontaminationofsea-
wateraroundtheporthasma-
jorimplicationsforLasPalmas
andtheislandofGranCanaria.
“Wehavedesalinatedwaterfor
humanconsumption,”saysMr
Saavedra.“If there were a boat
near our desalination plants,
whichproducednearly100,000
cubicmetresofwaterperday,
andithadanaccidentthatpro-
duced contamination in the
water,it would create a secu-
rityandsubsistenceproblem.”
Plans to develop a new de-
salination plant on the other
side of the city will contribute
to solving the potential prob-
lem, but Las Palmas and the
port authority is still aware of
the potential risks of ineffi-
ciencyandissteeringwellaway
from this approach to devel-
opment and safety.
Trade ships are not the on-
ly vessels that stop at Las
Palmas port, which explains
why the tourism sector is as
concerned about infrastruc-
ture development as those in-
volved in the trade sector.
Up untilApril 2008,year-to-
date figures for cruise traffic
showed an almost 28 per cent
increase on 2007. More than
€450 million (£356 million)
generated by tourism each
yearinLasPalmasmakesasig-
nificantcontributiontothelo-
cal economy, but Councillor
forTourismAday Ruiz Santana
wants to make sure that visi-
tors continue to spend in his
city.“Wehavespentmanyyears
in the wilderness and tourism
inLasPalmasdeGranCanarias
hasdecreased;nowwearede-
signing a new tourism strate-
gy for the city which is agreed
uponbyallpoliticalpartiesand
institutions,” he comments.
A strong focus on cultural
activities, potential concerts
during the Christmas period,
and festival tourism should al-
so encourage tour operators
to allow their clients to ap-
proach Las Palmas not as a
stopover but rather as a place
to spend quality time, enjoy-
ingtheperfectclimateandthe
quiet sense of change taking
over the city.
Halfway between Newcastle
upon Tyne and the Equator, Las
Palmas is a hotspot for tourism
and intercontinental trade
Rising trade traffic and an almost 28 per cent increase this year alone in cruise ships docking at
Las Palmas have bolstered plans to develop and enhance the port.
Perfect climate brings trade and
tourism cruising into Las Palmas
Jerónimo Saavedra
Acevedo, Mayor of Las
Palmas de Gran Canaria
Aday Ruiz Santana,
Councillor for Tourism, Las
Palmas de Gran Canaria
AERO-PUERTOS 340 x548 mm.qxd 16.09.2008 16:33 Página 2

3. ADVERTISING FEATURE
PORTS&AIRPORTS 324th SEPTEMBER 2008
The port of Melilla has al-
ways held a strategic posi-
tion – a vital link between
EuropeandAfrica.Founded
in1497,thehistoricenclave
ontheNorth-Africancoast
isoneofSpain’soldestcities.
Asasupplypoint,Melilla
long-served as a pillar of
theSpanishEmpireinAfrica.
For port PresidentArturo
Esteban Albert, the goal is
to build on that tradition.
The port already offers
competitivetaxandtariffin-
centives,butthereareplans
to further capitalise on
growing container traffic
through the Strait of
Gibraltar.
The new passenger ter-
minal, Estación Marítima,
willhelpboosttourism.Mr
Albert hopes it will be a
socialhubforthecity,com-
plete with a convention
centre and aquarium.
He said ferry traffic has
already increased and the
numberofvisitorsgrewby
40 per cent last year.“We
are at the gate of Europe
and at the gate of Africa,”
Albert says. “We are the
step between East and
West.”
Trade
traffic
heads
‘strait’ for
Melilla
Arturo Esteban
Albert, President of
the Port of Melilla
Along the Asia-Europe
transportation corridor,
Riga is emerging as an indis-
pensable link in the chain of
global commerce.Airports,
motorways,and seaports are
poised to substantially ben-
efit from plans to overhaul
its infrastructure.As the main
manager of construction and
development, the Riga City
Council has unveiled strate-
gic plans to develop the city’s
main trade arteries. The
Ministry ofTransport,head-
ed byAinars Slesers,is work-
ing to balance the liberalised
economic environment with
EU mandates to promote
competitiveness and attract
investments.
Spearheaded by the Riga
City Council, the Northern
Transport Corridor will al-
so offer fresh opportunities
for economic growth in con-
struction and transport lo-
gistics. The 16-mile motor-
way project is set to be the
largest transportation infra-
structure project in Riga
over the last few decades.
After work finishes in a
decade’s time, the motor-
way will integrate Riga
Freeport into the Trans-
European Transport
Network, raising competi-
tiveness on a global scale.
The stretch of road will al-
so divert sea and road traf-
fic further away from the
medieval cobblestone
streets of Riga’s Old Town,
a Unesco World Heritage
Site.
“Western Europe trades
with big eastern markets and
roads are one of the ele-
ments in this trade,” explains
Prime Minister Ivars
Godmanis.“But cargo is be-
ing brought by sea to our
Latvian ports. For that rea-
son, once we improve the
capacity and turnover vol-
ume, Riga will help boost
trade in the whole EU, as
well as in eastern markets
like Russia.”
Modernisation of ports in-
frastructure at Riga Freeport
is helping to achieve EU goals
to create a “motorway of
the sea.” In the past decade,
annual turnover at Riga
Freeport has doubled.Over
the course of several years,
the management shifted fo-
cus from cargo loading to
promoting greenfield devel-
opment of factories and lo-
gistics centres.The port han-
dled 25.9 million tonnes in
2007 – the largest rate of
turnover in the port’s nine
centuries of operation. Riga
Freeport is a leading partner
in the Dangerous Goods in
the Baltic Sea Region
(DaGoB) initiative,a training
programme designed to im-
prove efficiency and safety in
these vital waters.
Latvia’s capital city is raising competitiveness with fresh investment in its road and seaport infrastructure
Riga pumps new life into trade arteries
Sparked by the low-cost airline
revolution, Riga is already recog-
nised as a reawakening cultural
and tourism destination on the
map of Europe.Thanks to
Ryanair’s presence, London and
Dublin remain the most popular
routes, both representing
around 15 per cent of total traf-
fic destinations. In March,
Latvian budget carrier airBaltic
unveiled nine new routes con-
necting Riga to more European
destinations includingVenice and
Nice.
Accession to the EU in 2004
coupled with the signing of an
open skies agreement enabled
Latvia to operate an unlimited
number of flights.“Our advan-
tage lies not only in our geo-
graphical location, but also in
the change in aviation policy,
which improved our competi-
tiveness,” says Krisjanis Peters,
Chairman of the Board of Riga
International Airport.“We re-
alise that Riga Airport is one of
the key economic driving forces
in the country, and I think that
this synergy is what makes us as
effective as we are.”
Last year, Riga International
Airport served more than three
million passengers, increasing
total passenger traffic by over
25 per cent – an impressive feat
for a city of 747,000.As a result,
Mr Peters and his team have im-
plemented an expansion plan to
meet growing demand and in-
crease traffic in the coming
decades.The goal is to enable
the airport to handle a capacity
of 20 million passengers every
year.
A state-run company, Riga
International Airport seeks pri-
vate capital and strategic part-
ners to develop, operate and
administer future expansions. In
May, the airport’s management
opened an international tender
to realise the €150-200 million
modernisation and development
plan.After construction is com-
plete by mid-decade, an entirely
new airport will emerge inte-
grating existing facilities into a
new terminal.
I Rising passenger
numbers of 25% and
plans for expansion call
for astute management
Development and modernisation
at Riga International Airport
Members of the board (from left): Dagnija Kalnina, Janis Balkens,
Krisjanis Peters (chairman), Rota Murniece and Juris Kanels
What is the development programme of
Riga Freeport until 2010?
The main point is to move port cargo activity
from the city centre closer to the sea and free
up more space for the development of
businesses and cultural centres.We have signed
an agreement to build a big
modern container terminal
near the sea and our biggest
plan is to shift our coal
terminal to Krievu Island, on
the left-hand side of the
Western Dvina River.At the
moment it is very close to the
centre of the city, creating a lot
of pollution.
What are you doing to
improve competitiveness?
Compared to other ports in
Europe, Riga Freeport has more
than 800 hectares of available
land for greenfield investments
either for business centres or
logistics.
We are close to the borders with Russia
and Belarus so foreign companies are coming
here and looking for opportunities.Taking into
account the rapid development of Russian,
Kazakh and Chinese ports, we are able to
serve these markets. By eventually moving
operations closer to the sea, costs will be
cheaper.
Furthermore, we decided not to increase
port payments, despite rising global inflation.
We are trying to develop and meet the
needs of our customers of our port and we
are constantly improving our technical
services and reconstructing all our facilities in
order that it will fully meet top standards.That
is the reason why Riga Freeport is more
competitive.
How are you financing these new port
infrastructure projects?
After joining the EU in 2004, we have access
to European Regional Development funds.We
started preparing projects two
years ago, and now we are in the
progress of technical design with
government approval.
The European Cohesion Fund
can fund approximately €120
million of costs and we are also
working with the European
Development Bank, which already
finances existing projects.The
new container terminal will be
developed by private financing.
How are you prioritising
environmental protection?
Riga Freeport is unique because
we are surrounded by nature
protection areas.
So we are coordinating our
investment decisions with environmental
groups in Latvia. Because all terminals at Riga
Freeport are private, we choose the best
available technologies to decrease costs in the
future.
We accepted ISO 14001 guidelines to
become environmentally friendly and as a
result, our railway and car parks became
cheaper because we chose the best
technologies.
I Andris Argalis, Vice Mayor
of Riga, outlines the competitive
advantages of the city’s
port and its plans to maximise its
convenient location
‘Riga Freeport has over 800
hectares for greenfield investment’
Andris Argalis,
Vice Mayor of Riga
AERO-PUERTOS 340 x548 mm.qxd 16.09.2008 16:34 Página 3

4. ADVERTISING FEATURE
PORTS&AIRPORTS4 24th SEPTEMBER 2008
Aena (Spanish Airports and Air
Navigation) is a purely state-
owned company with no private in-
vestors and no private-sector in-
put.It is also the largest airport op-
erator in the world, with respon-
sibility for 47 airports worldwide,
including all 26 of Spain’s as well
as further installations in Mexico,
the USA, Bolivia, Cuba, Colombia,
Sweden and the UK.
Although a state-run company –
with all installations the property
of the Spanish state –Aena is man-
aged as a private company and fund-
ing is completely separated from
state budgets.No government sub-
sidies exist and there are no fi-
nancial contributions whatsoever
from the state coffers.For this rea-
son,it is imperative that a business
model centred on customer satis-
faction is adhered to,as all ofAena’s
revenues are generated directly
from the airlines that use the com-
pany’s airports,and the passengers
that use those airlines.
“Airports are the entrance to a
country,” states Javier Marin,Aena’s
Director.“It is the first thing which
any person who comes to visit a
country sees and it showcases the
country’s capabilities, its engi-
neering, architecture, technology
and construction.This of course has
to be compatible with efficiency
and cost, because the people pay-
ing for the existing infrastructure
over the years are the airline com-
panies and the passengers”
In Aena’s case, the fine balance
between expansion and overreach
has been tempered by a world
record growth rate at Madrid
Barajas Airport – 14 per cent in
2007, which represents a total in
passenger numbers of 52,143,275.
Barcelona’s El PratAirport record-
ed a growth rate of over 9 per
cent for the same period, with
32,800,570 passengers passing
through its gates. The two main
Spanish airports account for 40
per cent of all air traffic in Spain,
which last year peaked at 210.4
million passengers,another record.
These figures have been made
possible via a 6.2 billion euro ex-
pansion at Madrid Barajas, which
furnished the airport with its new
Terminal 4 – the largest building in
Europe in terms of floor space –
and a major expansion at El Prat,
with another new terminal due to
be inaugurated in 2009.While the
onus falls on the two largest air-
ports in Spain to take the bulk of
passenger arrivals, the increasing
flight frequency of low-cost carri-
ers and a sweeping array of desti-
nations have made further invest-
ments at regional airports a priority
for Mr Marin.
“Investment tends to be peri-
odical in line with the needs of
each airport. Over the last few
years the main projects have been
Madrid and Barcelona,but we have
also continued to invest in other
airports according to the growth
they have experienced and in line
with projected future demand.
Without doubt the largest proj-
ects, Madrid and Barcelona, are
important not only in Spain but al-
so at a European and world level.
However,we have also invested in
Alicante where we are building a
new terminal at an estimated cost
of 450 million euros and another
one in Malaga plus a new runway;
a 1.1 billion euro project. In the
Canaries we have embarked upon
an investment plan in which three
billion euros will be invested over
the next 15 years. We have also
built new terminals in Menorca
and recently opened a new ter-
minal in Zaragoza in preparation
for the Expo. We also inaugurat-
ed a large extension of one of the
terminals inValencia for the recent
Americas Cup.”
These expansions represent an
investment not only forAena’s long-
term profitability, but also at a na-
tional level as the necessary sup-
port structure for a booming
tourist industry which accounts
for 11 per cent of Spain’s GDP,
with 75 per cent of all tourists ar-
riving by air. However, by the year
2010, at current levels of compar-
ative growth,Spain is predicted to
overtake the UK as the largest re-
cipient of air traffic in Europe (cur-
rently,only Paris’s Charles de Gaulle
Airport has more take-offs and
landings annually than Madrid
Barajas) and additional infrastruc-
ture is therefore required to match
the increase in demand.
With this in mind, Mr Marin has
been aware of the need to remain
flexible in Aena’s approach to fu-
ture business models.With air traf-
fic to Spain expected to continue
to rise and tourist numbers like-
wise, it seems that the time has
come forAena to seek private sec-
tor partnerships and investment
to keep pace; the winds of change
are blowing.
The Spanish government had al-
ready recognised the need to make
some very important changes in the
company;at a cabinet meeting held
on August 2, it approved plans to
sell a 30 per cent stake in Aena’s
airport operations to private in-
vestors whilst retaining full own-
ership of the air traffic control
functions. The new model envis-
aged also allows regional govern-
ments to participate in the man-
agement of the country’s top air-
ports; Madrid and Barcelona.
“It is logical that the government
should analyse the alternative man-
agement models of a company that
is so important for this country.The
current model has worked suc-
cessfully for 15 years, but natural-
ly the government has been look-
ing at how best to cope with grow-
ing demand over the next 15 years.
I think that a new model whereby
the Spanish autonomous commu-
nities as well as local governments
and the private sector can enter
the airport management side of
the business makes sense. Details
about the model chosen and how
the company is to be reshaped yet
need to be revealed but, in any
case,Aena’s good financial results
must be taken into account.The air-
ports in Spain have over 120,000
people working for them,therefore
the model in question should also
contemplate making changes at a
certain speed and with sufficient
sensitivity, in order to make the
transition without detrimentally
altering such a strategic sector as
this one.”
Whatever changes may lay ahead
for Aena, Mr Marin is clear as to
the priorities of the company and
its responsibility to Spain, its in-
terests abroad and,more than any-
thing, the passengers who rely on
Aena to provide safe and efficient
services.
“The main objective of Aena is
not to gain profit, but to offer an
air transport service,without put-
ting any limits on the potential of
air transport and without costing
the taxpayer a single euro. There
is no state budget applicable to
Aena – the infrastructure is de-
rived from the payments that the
airlines make for the use of the fa-
cilities.We try to find an equal bal-
ance between the quality of the
infrastructure and low prices.First
and foremost,our services must be
attractive to those who have to
pay for them.”
The national airports service
provider, Aena, has overseen record
passenger numbers and massive
airports expansion
Javier Marin, Director of Aena, believes that quality service
should always supersede profit margins.
‘We try to find an equal balance
between quality and low prices’ I The skies are
rapidly catching up
with congested
roads as an area of
environmental
concern – a
predicament Aena
is keen to combat
As people’s awareness of
the environmental impact
of increased air traffic is
piqued by non-profit or-
ganisations and the media,
airlines and air transport
service providers face a
challenge to balance the
necessity for reparative
measures with the bot-
tom line and the sway of
public opinion. At Aena,
the issue is one of par-
ticular concern, and one
that Javier Marin has tak-
en a personal interest in
mitigating.
“In Spain we have dis-
incentive measures, in-
cluding penalising the use
of older,noisier craft with
taxes that are paid to the
larger airports – encour-
aging airline companies
to change their craft.We
are introducing wind
power at some airports.
We have an airport in the
Canary Islands where the
majority of the energy
used is generated by
wind.”
Whereas the onus for
environmental controls
at specific airlines falls un-
der the remit of the EU,
resulting in initiatives such
as carbon offsetting, Aena
is compelled by its own
government to implement
expiatory procedures.
“In Barajas (the district
of Madrid from which the
airport takes it name) 100
million euros have been
invested in soundproof-
ing homes. In a few days
time we will be opening
a recuperation centre for
wildlife in which we have
invested over seven mil-
lion euros.We are giving
this centre to the com-
munity of Madrid to com-
pensate for the environ-
mental impact on the lo-
cal fauna.All of these en-
vironmental requirements
are followed up by those
who oversee them, such
as the Ministry for the
Environment.There is no
doubt that air transport
generates an environ-
mental impact and our
challenge is to minimise
that impact.”
The environmental
balancing act
Madrid Barajas’s T4, a 6.2 billion euro expansion
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