Gateway International Nigeria Serving the Greater Lagos Market Gateway International Airport Nigeria Update for World Route Development Forum, Berlin Introducing Heritage Consortium Prepared by Airport Strategy & Marketing, a UBM Aviation Brand October 2011 The Challenges and Needs of a Greenfield Airport Development Burt Cohen, Managing Director
Why GIA? Central to future catchment area and footprint of Greater Lagos Includes: Current Lagos metropolitan area Development Pressure Area along Lagos Ibadan Expressway Ibadan, which is poorly served for air transport Source: ASM project report (GIA, 2010) 2
Population Development Pressure Area The Ogun State Regional Development Plan identified a Development Pressure Area (DPA) to accommodate population growth of Lagos Population within the DPA was expected to increase from 470,000 in 2003 to 2.5m in 2025 1.6m influx of new residents 0.9m growth of existing population Zone 2 is the focus of development along the Lagos Ibadan Expressway (GIA catchment) LOS 3
Project and Consortium Background Heritage Consortium founded by Nigerian concern in 2010 as a US company headquartered in Atlanta; Entered into a public private partnership with Ogun State, Nigeria to develop Gateway International Airport (GIA); Prepared plans for an Airport City to cover 5,000 hectares land transferred to consortium during 2011 and discussions on going with new Political leadership; Retail, residential and hotel conference centre designed to complement GIA (covering approximately 3,000 hectares of the total site); Heritage has a MOU in place for the development of a MRO, FBO and flight academy; Anticipated opening for operations in the first quarter of 2015. 4
Project Update Full business plan completed 2010 with wide range of international advisor experience utilised (Fraport, Dorsch, Fieldstone, ASM ); Capex requirements revised Jan Apr 2011 (also Architect Gensler appointed); Change in Ogun State Political Leadership has delayed the process however now moving forward again as relationships have been established; Phasing plan has been re worked and revised business plan process due shortly; Financial Advisor expertise being consulted to manage investment process targeting January 2012 commencement; Several expressions of interest for lending already identified; Final design work commenced potential ground break in next quarter Airport inauguration anticipated for 2015 Negotiations underway with civil contractors to facilitate modified design/build Project will retain urban design concept incorporating broader land use ( Airport city ) Discussions with several international airlines with strong degree of interest in market and airport potential. 5
GIA Airport City Airport is part of a much larger community development plan 6
What does it look like? The new airport of choice for Southern Nigeria 7
GIA Long term site development (phase 4) 8
Challenges? It is Nigeria! A young, fragile democracy; Oil based economy (80% of revenue); No strong mechanism for infrastructure development; National Aviation policy where will GIA fit in? Home based carriers have had difficulties. However, Massive developing market economy growing at 8% pa (will overtake South Africa in 10 years); Increasingly mobile population more people under 30 than Egypt, Libya and Tunisia combined; Traffic and cargo growth is phenomenal Lagos passenger traffic up by 11% in 2010, cargo volumes +14%; Front end traffic for International carriers is very strong. 9
What are we looking for? Quite simply: Equity partners; Management expertise to fill out the development team; Potential lenders; Operational experience for future management of the asset. We are early in the cycle however momentum is building and the interest is tangible regionally, nationally and internationally. Airlines and Cargo operators alike have a strong interest in the project as the facility is being designed to internationally recognised standards. 10
Thank You For Your Time Questions? 11
Gateway International Nigeria Serving the Greater Lagos Market Gateway International Airport Nigeria Update for World Route Development Forum, Berlin Introducing Heritage Consortium Prepared by Airport Strategy & Marketing, a UBM Aviation Brand October 2011 The Challenges and Needs of a Greenfield Airport Development Burt Cohen, Managing Director