Airport CITIES 2016

The 15th Airport Cities World Conference and Exhibition Day Three

The global airport cities community gathered today in the Main Ballroom of the Shangri-la Hotel in the beautiful coastal city of Qingdao, for the third and final day of Airport Cities.
Conference Chair Professor John Kasarda opened the session with remarks on the upcoming programme and special words of praise for the very high quality of the Gala Dinner and the unique entertainment provided the previous evening. The entire audience clearly agreed with these comments and expressed their approval.

Keynote:Airport Cities as Non-Aeronautical Revenue Generators and Regional Economic Catalysts The first speaker in the morning session was Patrick Heck, Chief Commercial Officer, Denver International Airport covering the topic “Airport Cities as Non-Aeronautical Revenue Generators and Regional Economic Catalysts”
Mr Heck highlighted the following key points:
• Route Network development is key to success
• Denver Airport will welcome 58 million passengers in 2016.
• 65% O&D traffic provides opportunity to generate Non Aeronautical revenues
• More than 50%of Denver Airports total revenues are now generated from non-aeronautical sources. The longer-term target is to increase to 60 to 70%
• Revenue from Land use $12 million per annum
• Oil and gas revenues from 72 wells currently US$2 million
• Leased land for farming US$250,000
• Rental cars US65 million per annum
• Parking US$172 million (down 2-3%)
• UBER and other taking more passengers than traditional cabs so adjusting parking models and pricing to compete.
• Uber and Lift and off airport parking lots have applied pressure to rethink pricing strategy
• Westin Hotel owned and financed by DIA
• Meeting space in the new hotel has generated US$16.9 million in 2016, well ahead of budget
• Airport City driven revenue
• 10 mile driveway to airport
• Transport Oriented Development at 4 stops where DIA owns 250 acres of land
• Panasonic has relocated its USHQ for the Solutions Business in Denver at 61st and Pena
• Regional tax sharing with surrounding regions has paved the way for the airport city development

Panel: Successful Airport City Design
Sun Tianyao, EVP Aerotropolis Institute, Zhengzhou
Mr Sun talked about the competitiveness of the Aerotropolis business model in relation to the Zhengzhou Airport Economy Zone (ZAEZ) which is 414 sq km in size.

Zhengzhou Airport is rapidly developing into a top transportation hub and ZAEZ will adopt the Smart Aerotropolis plan
ZAEZ will become China’s No1 National Economy Zone
The necessary approvals for ZAEZ and 7 other free trade zones are in place
ZAEZ has 8 separate economic clusters
1 in 7 smart phones in world produced in ZAEZ
Next stage goals:
• Highly educated professionals
• Livable environment and good urban design
• 3 communities
1) International Community
Public Infrastructure will be put in place
The environment will be carefully designed and controlled including - colour, materials, street furniture, advertising boards, landscape guide
The emphasis will be on a low carbon, livable environment
2) International Garden Expo,
Next year and last for one year
3) Shuanghe Lake Area
Bigger than Central Park, environmentally Friendly Business Environment
Elevate service level to international footprints

Jonathan Manning. Group MD, Osmond Lange Architects, SA
BongiwePiyti, General Manager, O R Tambo International Airport, Ekurhuleni, South Africa

Both speakers mentioned that Africa is experiencing rapid population growth
Young and urbanizing population – relatively untapped potential
O R Tambo Western Precinct development covers 18 acres and will feature the following sectors:
• Ekurhuleni Airport City
• University of Ekurhuleni
• Civic Precinct
• Shopping Mall
• Sports precinct
• Health Precinct
• Logistics and Light Industrial
• Use of Wetlands
The plan is to extend rail directly to the airport including the Gautrain rapid rail link

Yang Xiaoming, VP, China Supplies Holding Co.
Mr. Yang states the relationship between airport planning and sustainable development
He concludes that transportation decides the fate of a city.
Green airport city is a solution to incorporate the city and airport.
As the most advanced transportation with high additional values, airport drives economy, with sustainable development as the key to success.
How to build a green airport?
Use modern technology including efficient automation control system, cleaner energy, and energy-saving technologies

LuoHuan, Senior Project Manager, Landrum & Brown
Role of Airport Cities
Function of the City and the City plan

Professor Cao Yunchun, Director Institute of Airport Economics Civil Aviation University of China

Professor Cao talked about the many challenges faced by the Aerotropolis projects in China
In 2015 there are 67 Aero cities
How to define the aerotropolis and what industries we attract
Fragmented development is an ongoing issue
When the Masterplan of airport is developed in isolation from the Cit
It inevitably leads to conflict
Professor Cao said that Zhengzhou was making good progress but some sectors were still not present.
Careful attention needed to be given to the delicate relationship between adjacent communities and airport
Beijing T3 - the 2 hotels located close to but no forming part of the terminal were not good for business, as you cannot walk there from terminal
Changsha communities suffer from noise
Shanghai Hongqiao is good example of design
How do we respond to silos?
3.0 era of city development – Integrated development model leading to a good regional and harmonious plan

Hu Zhaozheng, Deputy Director, China Aviation Planning and Design
21st century is aviation century
Aerotropolis development driven differently across the world.
Asia Pacific – Government driven
Europe – Commercially driven
USA - Public Infrastructure and ownership
China – 20 airport economic zones
There are 3 stages of development
• Spontaneous - Beijing Capital Airport
• Experimental - Zhengzhou Economic Zone
• Demonstration –QingdaoAerotropolis
He mentioned many new projects including
Beijing New Airport Aerotropolis
Guangzhou Economic Zone
Tianfu International Airport Industry New City

Zhu Yuejun, Founder, Dongtan Consulting, President Dong Xun International
Planning Methods of Regional Comprehensive Development
Strategic Planning
Determine the Vision
Set the Goal
Design the Path

Keynote: Managing the Airport City
Pieter van der Horst, Senior Airport City and Real Estate Director, Amsterdam Schiphol
All real estate is owned by AMS
70% non-Aeronautical and 30% aviation related revenues
He quoted Steve Jobs of Apple “Start with customer experience and work backwards to technology”.
Creating a great workplace for employees (residents)
CEO, CFO, HR and Facilities Manager are the decision-makers on office location.
Sense of place and public space
Currently the available space at AMS is full
Challenges facing the AMS team
• The growth of the airport causes the landside to move out and encroach on the airport city.
• Sustainability an ongoing issue
• Smart – real time workplace environment and heat maps of the building

Panel: Air Logistics as a Driver of Airport City and Aerotropolis Growth
Noel Greis, Director, UNC-CH Digital Enterprise & Innovation
Needs to be at the forefront of the new platform economy
4 Types of Platform
Transaction / Innovation / Integrated / Investment
GIG Economy contract with independent workers Uber drivers/ Amazon delivery
Sharing Economy peer to peer sharing - GM Car sharing
M2M communications between intelligent objects

Cosmas Hamadrizipi, Director of Policy and Planning, KZN Dept of Economic Development /Durban Aerotropolis
Mr. Hamadrizipi outlined the Durban Aerotropolis that was developed around the new King Shaka International Airport.
The new airport was located to the north of the City of Durban and is connected to the city by highway.
The Aerotropolis has all of the key precincts and additionally a large agricultural area where fruit and vegetables are grown under glass and then harvested and exported to Europe by air.

Panel:FTZ as Airport City and Aerotropolis Engines
Adam Jones-Kelley, President, Conway
Matthew Sumner, Director of Asia, INVEST IN
Max Bouchet, Chief Analyst, Conway

More than 3000 FTZ’s in 2010
International trade volumes have increased in line with FTZ’s
Customs duties decreased from 40% to 3-10%
Be innovative and move on from the historic model for FTZ’s
FTZ use technology to drive trade for SME’s
Reasons for FTZ/SEZ/IDZ failure.
• Market distortion and therefore isolated.
• Supply of suitable labour not available.
• Some are simply unresponsive/ not answering phone

Panel:Developing A Sustainable Airport City And Aerotropolis
Robert Freestone, Professor of the Environment and Urban Planning, University of New South Wales
Professor Freestone outlined the plan for the Badgery’s Creek development of a new second airport in Western Sydney
Ultimately this will give the city of Sydney a new dynamic with 3 Centers
• East, centered around existing Sydney Airport
• Central Region
• Western Region around Badgery’s Creek

Peter Budd, Former Global Head of Aviation, Arup
Mr Budd outlined a number of innovative ways that technology is enhancing the development of sustainable airport cities and aerotopoli across the world.
These advances can be seen at the design stage and also in the improvement of the management of the buildings and areas within the larger developed area.

Alexander Kirby, Senior Advisor, London Gatwick Airport

Mr. Kirby gave some practical industry examples of sustainability in practice in the UK at London Gatwick Airport.
• Efficient use of available land. If your airport has limited real estate then careful planning and use of advanced management processes can allow up to 95 million passengers to be handled on just 2 runways
• Greater use of public transport (particularly railways) to reduce private care journeys to the airport.
• Electric vehicles on airport, for taxi services to and from the airport and vehicle sharing by passengers to specific drop off points in the region.
• Waste to energy conversion of Type 1 waste raising the percentage of waste recycled on airport from 50% to 90%

Closing Keynote: Can smaller airports become Airport Cities
Gaetan Gagne, President and CEO, Jean Lesage International Airport, Quebec, Canada
M. Gaegne made a convincing argument that a smaller airport such as JLIA in Quebec (1.6 million passengers per annum) can successfully adopt the Airport Cities model.
Mr. Gaegne highlights YQB’s strategy of Passenger First:
• 5-story Parkade with 1,150 spots
• New international terminal to double its current capacity
• Easy customs clearance
He also outlines YQB’s challenges
• How to get real support from all levels of governments
• How to develop more point-to-point flights
• How to reach a common goal at the regional level
• How to survive through various elections along the way
• How to reach a critical mass of passengers

Closing remarks from Professor Kasarda summing up the days proceeding and officially closing Airport Cities 2016.