BNE domestic terminal expansion approved

[lloyd fox]

Work should start in November according to today's Courier Mail

MEDIA RELEASE
The Hon Anthony Albanese MP
Minister for Infrastructure, Transport,
Regional Development and Local Government

The Australian Coat of Arms
05 February 2009
AA016/2009
BRISBANE AIRPORT DOMESTIC TERMINAL EXPANSION APPROVED

Today I've approved a half a billion dollar upgrade of Brisbane Airport's domestic terminal, a major infrastructure project that will create 6,000 jobs during construction.

The 'green-lighting' of the project will provide an immediate stimulus to the economy, while putting in place the facilities the airport needs in order to cater for the millions of extra passengers expected over coming decades.

It is the most significant upgrade to the domestic terminal since it opened in 1988, with work scheduled to start later this year.

This investment from the private sector is a vote of confidence in the local aviation industry and will complement the Government's $42 billion Nation Building and Jobs Plan to support the Australian economy during the current global recession.

The terminal expansion and road network reorganisation is designed to meet the airport's future needs, providing users with easier access to it facilities and public transport links.

The expansion includes:

* A new check-in hall (known as the Pavilion);
* Reconfiguring the road network for easier access to the terminal;
* Expansion of the northern end of the terminal, with additional gate lounges and retail space;
* The expansion of the common-user satellite with up to seven new gates; and
* A new central energy plant to provide for present and future energy needs of the terminal.

The project is consistent with the current Brisbane Airport Master Plan, and the operators have agreed to implement environmental and traffic management plans during the construction and operational phases of the project.

The number of domestic passengers transiting through Brisbane Airport is expected to more than double from 14.4 million to 34 million by 2030.

Conditions for the approval of the expansion project are publicly available at: www.infrastructure.gov.au/aviation/airport/conditions.aspx.

[Rhys Xanthis]

And if Perth wasn't privately owned, we could be doing the same and creating jobs, while finally merging the terminals and getting a better airport.

But nooooo....

[Bob C]

I hope I have this correct as I don't quite follow you, Rhys.

The operator of Brisbane airport is BAC (Brisbane Airport Corporation Pty Ltd) under a long term lease from the Commonwealth of Australia. Refer the introduction from the website shown below.

WAC (Westralia Airport Corporation) operates Perth airport under a similar lease arrangement from the Commonwealth.

".....BAC - Our Company

Brisbane Airport is operated and developed by Brisbane Airport Corporation Pty Limited (BAC) under a long term (50+49 year) lease from the Commonwealth of Australia. BAC is part of a holding company group corporate structure, the ultimate shareholders of which are major Australian and international organisations (including Amsterdam Airport Schiphol and the Port of Brisbane Corporation), Brisbane City, and significant institutional investors.

BAC's close ties with Amsterdam Airport Schiphol, one of the world's most modern and efficient airports, helps ensure world-class standards in owning, developing and operating a global airport city of the future.

Already more than 130 businesses and nearly 8,000 people work on Brisbane Airport every day. This is forecast to exceed 40,000 people by 2025.

Our corporate philosophy is "Make the most of life." And our mission at BAC is to achieve this objective for our employees, our customers and our partners. "

Perhaps BAC has more "mojo" to go and do things with its airport. And having close ties with Amsterdam's Schipol Airport is a major bonus as WAC doesn't have that.

[Rhys Xanthis]

Ahh, should have made it more clear that what i was saying was more like your last comment - greater willingness to get things done. Sure they announced some big redevelopment, but they toned it down fairly quickly.

I think the government here has the attitude that it is a privately owned business, therefore not really entitled to ask for or receive funding, which WAC should have got straight away, as soon as they said they were slowing the redevelopment.

[Bob C]

I still don't follow you Rhys.

Are you saying that once WAC announced changes to its "Vision For The Future", the then Labour State Government should have stepped in and provided the funding necessary to complete the redevelopment as originally proposed ?

I very much doubt that would have occurred.

[Rhys Xanthis]

No no, they scaled back the reconstruction as they couldnt find the cash to do it.

I'm saying at that point, and now, the government should give a heap of funding - it will create jobs both now and in the long term, all while giving us the facilities of a sorely needed new airport.

[D Chan]

I believe now is a good time to spend money during the downturn. By the time the terminal is finished, I believe the economic cycle will have picked up again.

[Bob C]

Perth Airport's Vision For The Future was announced in May 2008 well before anyone expected the economic downturn.

So WAC must have been planning it for several years and surely would have costed the project and ensured funding was in place before announcing the project. If not, then that smacks of negligence on WAC's behalf and must put the continuation of its lease in doubt because the Commonwealth Government (as the owner) must be concerned about WAC's ability, expertise and desire to manage an airport.

BAC on the other hand seems to be doing it correctly and has been proactive with such things as new roads, terminal extensions, new multi level carparks etc etc. Obtaining private funding doesn't seem to be a problem for BAC.

The redevelopment of Brisbane airport is being privately funded and the operators up there seem much more attuned to the aviation scene. I was very impressed by what I saw during a visit in October 2008 and couldn't help thinking "if only WAC had the same foresight."

I think the key to this is BAC's links to the management of Amsterdam's Schipol airport.

And you don't have to look much further than the following statement on BAC's website :

"Brisbane Airport is a vital piece of public infrastructure serving the interests of the community, business, tourism and government in South East Queensland. As a critical transport hub, Brisbane Airport facilitates the movement of many millions of passengers and tonnes of freight each year.

BAC as the custodian of Brisbane Airport on behalf of the Australian Government, is required to ensure that facilities are developed to meet the current and future needs of South East Queensland. This responsibility means it must put into place appropriate planning, making commitments to upgrade and expand the Airport so that it operates efficiently and has the capacity to cater for its growing number of users.

BAC has committed around $2.5 billion toward infrastructure over the next 10 years, including new roads, new terminals, a new runway system and the development of aviation-related industry precincts. "

Insert Perth for Brisbane and Western Australia for South East Queensland and that just about sums it up.

Rhys, I don't think the W A Government will be able or want to give WAC "a heap of funding" because they have more pressing demands - the Fiona Stanley Hospital, several other new Hospitals, roads, rail carriages, schools etc and you will be aware that spending on other less important projects has been slashed - the redevelopment of Subiaco is a case in point.

So if WAC has created problems for itself then it needs to find solutions. If it can't, perhaps the Commonwealth Government should resume control.