financial results by Jeff Radebe-MP
16 August 2007
Programme Director, Themba Khumalo,
Chairperson of Airports Company South Africa (ACSA), Franklin Sonn,
ACSA CEO, Monhla Hlahla,
ACSA Finance Director, Brooks Mparutsa,
Representatives of the aviation industry,
Distinguished guests,
Members of the media,
Ladies and gentlemen
One of the most frequently asked questions in our country today, especially
to government, is whether or not our country will have the necessary
infrastructure and services to facilitate the 2010 soccer world cup. To some
extent, this question has been largely answered by the numbers of stadiums
being built across the country, as well as new investments in transport and
hospitality facilities.
While this is a useful question, the more important question in government's
mind is whether in leveraging the 2010 World Cup, South African institutions
will generate infrastructure developments that are sustainable and value adding
beyond 2010. It should be obvious that I am pleased to officiate at the release
of another set of good results from Airports Company SA (ACSA), knowing very
well that one of the key factors underlying these good results is consistency
in delivering sustainable and needed airport infrastructure and services for
the aviation industry to our country and region.
Ladies and gentlemen, Airports Council International (ACI) estimates that
global air travel has continued to grow, experiencing a 4,9 percent average
growth rate in passenger numbers in the calendar year 2006. In this year, the
regions of Africa, Asia/Pacific and the Middle East led the world with average
annual percentage growth rates of 7,8 , 8,5 and 12,6 respectively. Of
significance for us today, is the fact that the passenger growth rate of ACSA's
network of airports reached 11,3 percent in the same period, and is expected to
grow at an average growth rate of 8% into 2010.
While it is well known that transport infrastructure is the heartbeat to
economic development and social advancement, I want to believe that this
audience understands that traffic growth rates in the aviation sector are a
function of levels of economic growth (GDP).
The positive growth in passenger numbers is largely as a result of the
domestic passenger market, which was powered by a stable economy and growth in
GDP levels to around 4 percent.
Let me give you some more detail on the level of passenger growth rates
experienced by the ACSA network of airports in the last financial year,
excluding the obvious growth rates of OR Tambo and Cape Town International
airports.
Basically ACSA is handling 16,5 million departing passengers annually and is
currently experiencing an annual growth of 10,8 percent. For instance, during
the year under review we have seen a huge growth in smaller airports such as
the:
* Port Elizabeth Airport which grew by 10,4 percent on average, reaching
total passenger volumes of 1,4 million passengers for the year. The current
consolidated terminal capacity is 2 million passengers.
* East London Airport grew by 16,7 percent on average, reaching a total
passenger volume of 698 000 passengers for the year. The current consolidated
terminal capacity is 700 000 passengers.
* Bloemfontein Airport is today the fastest growing airport at an average
growth rate of 42 percent in the year under review, due to the entry of the low
cost carrier Mango. The airport facilitated 464 000 passengers in the year
under review, through a terminal with the capacity to handle 360 000
passengers.
* Kimberley Airport on the other hand, grew by 25 percent and handled 132
000 passengers during the year under review.
It should be clear that the entire network has experienced good growth in
the year under review, confirming that the challenge to us as a Ministry and
Department of Transport and to ACSA is how we provide infrastructure
sustainably and timely throughout the network. We need to meet this real
demand, which is clearly beyond the requirements of the 2010 soccer world cup,
whilst maintaining ACSA's and the broader aviation industry's economic
viability.
I am pleased that in the year under review, ACSA invested up to R1,7 billion
in infrastructure development to kick start a programme that will see its
infrastructure capacity improved by the event of the world cup. As part of this
investment, a terminal upgrade for George airport was successfully completed,
enabling the airport to grow its terminal capacity to 800 000 passengers a
year.
ACSA has committed a total of R19,5 Billion for airports upgrading including
the Greenfield La Mercy Airport in Durban. We are currently awaiting the Record
of Decision to start working on this project.
In the medium term, I would like the management and Board of ACSA to
continue focusing on the following important issues underpinning the company's
ability to deliver infrastructure sustainably:
* Long term airport planning to ensure timely responses to growth in demand
and integration with local and national government transport planning
imperatives. Airports do not exist in isolation and require integrated
transport modes to ensure efficiency of operations for the benefit of the
users.
* Investment in people and recruitment of the right skills to assist the
company manage the growth in demand and supply of infrastructure.
* Research on operational policy and technologies to make our airports world
class, accessible to our people and meeting the standards and requirements of
its clients, the passengers, airlines and visitors to the airports.
* Global benchmarking to ensure that our airports remain world class and
leading in critical indicators, which will support our economy's attractiveness
for tourism and investment.
B* road based Black Economic Empowerment to ensure increased participation
by the previously disadvantaged, in the benefits of the good growth being
experienced by the industry.
Let me thank the Managing Director, Monhla Hlahla and her energetic and
diligent management team and staff. I hope you and your team will be in the
position to meet tough requirements to deliver the planned infrastructure on
time and cost effectively for World Cup 2010 and beyond.
As well, please allow me to thank Franklin Sonn and the previous Board of
Directors for these excellent results and performance against set targets. May
you and the new Board continue to focus on delivery of our commitments for
efficiency and improvements of customer service levels.
Thank you
Issued by: Department of Transport
16 August 2007
Source: SAPA
