Question Marks Over Airport Company's Answers (2)

Questions and Answers Leads to a Cloud Of 'Inclarity', 'Confusion' & 'Uncertainty'

REQUEST FOR INFORMATION ON GENERAL AVIATION/AIRPORT POLICY AND

RELATED DEVELOPMENTS AT KIA

*1. The New Crusading GUIDE (NCG): Does Ghana have a clearly defined General Aviation/Airport Policy

*Ghana Airport Company Limited (GACL): Yes

*2. NCG: What are the plans for the much advertised expansion and redevelopment of KIA and the regional airports? What is the source of funding? Or have any financial/budgetary estimates been drawn up?

*GACL: KIA DEVELOPMENT PHASE 3

The development of KIA is in Phases. Phase 2 was completed in 2004. The Phase 3 of the development of KIA commenced on 12 January 2009 and it comprises the following;

• Construction of New Fire Station

• Reconstruction of Taxiway/Apron Pavements

• Supply and Installation of Taxiway Aeronautical Ground lighting System(AGL)

• Construction of Airside Drains

• Rehabilitation of Runway Touch Down Zone

• Provision of Pavement Management System

• Construction and Extension of Fuel Mains

The construction of the New Fire station is about 95% completed.

Financing of these projects comprise both local and foreign loans.

KOTOKA INTERNATIONAL AIRPORT TERMINAL REFURBISHMENT

PROJECT

The KIA Terminal Building Project is a continuation of a comprehensive Airport Master Plan and Terminal area Study which was completed in 2008. The study recommended the following:

• Increase the capacity of Terminal Building

• Make effective utilisation of available space

• Reverse the existing passenger flow

• Providing Linear Concourse

• Provide Passenger Boarding Bridges, etc.

The Conceptual/Preliminary designs have been completed. The Consultant has been requested to commence work on the construction/ working drawing including preparation of Tender Documents. The estimated cost of this project is $140m.

Management is looking for funds for the construction of the Terminal Building

REHABILITATION OF THE REGIONAL AIRPORTS

Management is in the process of signing a Turnkey Contract with Messrs GK Airport for the rehabilitation of Kumasi, Sunyani and the Takoradi Airports in the sum of $122m. Approvals for the Turnkey Contract have been received from Cabinet, Parliament and the Public Procurement Authority.

Management has completed the draft Contract Agreement and the Employer's Requirement. These have been forwarded to the Attorney General's Department for study and approval.

*3. NCG: Has the Ghana Airports Company ltd (GACL) engaged the stakeholders in the Aviation Industry, namely the Airlines, Cargo Handling Companies, Freight Forwarders, Catering Companies, Fuel Companies, Security Companies, Importers/Exporters etc in the planning and execution of the Airport Expansion/Re-development scheme?

*GACL: SEVERAL STAKEHOLDERS MEETINGS HAVE BEEN HELD FOR BOTH THE KIA DEVELOPMENT PHASE 3 AND THE KIA TERMINAL REFURBISHMENT PROJECT. THE STAKE HOLDERS INCLUDE THE FOLLOWING:

• GCAA

• Representatives of the Airlines Operators Committee

• Representatives of the Ground Handlers

• The Board of Airlines Representatives

• Representatives of Fuel companies

• Airport Immigration Service

• Customs at KIA

• Plant Quarantine

• Veterinary Services

• National Security at the Airport

*4. NCG: What is the extent of consultation in respect of the cooling shed donated by the US Government? Have the Exporters been consulted on the viability and profitability of the facility and how are the running costs going to be paid for? What is the overall cost of the cooling shed?

*GACL:• The Millennium Challenge Corporation (MCC) and the Government of Ghana (GoG) have entered into a Millennium Challenge Compact for Millennium Challenge Account assistance to help facilitate poverty reduction through economic growth in Ghana of an amount of approximately Five Hundred and Forty Seven Million USD. To implement the Compact program, the Government of Ghana created an implementing entity, the Millennium Development

Authority (MiDA). The Compact program is designed to address rural poverty through targeted agricultural, transportation-related and social infrastructure (rural water supply, sanitation,

education) interventions.

• This project is being fully funded by the Millennium Development Fund.

• Construction of a Perishable Cargo Centre (PCC) at the Kotoka International Airport (KIA), for palletising and facilitating fresh and packed fruits and vegetables meant for the export market;

The rationale underlining the provision of a PCC at KIA is to address the lack of a modern facility for handling of horticultural products which limits exports of Ghanaian products to the lower end of the markets in the European Union (EU) due to concerns of food safety and meeting international certification standards.

• Consultations with the exporters were handled by the Millennium Development Authority (MIDA).

• GACL met with exporters in early 2010 to discuss problems associated with the export business and the way forward.

*5. NCG: For example, have the Exporters expressed an interest in the shed and will they use it because pineapple is spoilt if cooled?

*GACL: The cooling shed has different temperatures for different products.

*6. NCG: Does the GACL have reliable database/statistics of tonnage or passenger throughput? If yes, can you provide details?

*GACL

Year

2009

2010

2009 2010

Int'l Passenger Movements 1,204,786 1,308,945

Domestic Passenger

Movements 122,059 119,479

Total Passenger

(Int'I + Domestic) 1,326,845 1,428,424

Imports

(tons)

17,368

19,462

Exports

(tons)

28,325

26,498

Total

45,694

45,960

*7. NCG: Have Ghanaians been encouraged to invest, in the airport companies? If yes, can we be provided with any evidence to that effect? If no, why is that so?

* GACL: GACL has developed its own investment profile. This information is available and a lot of requests have been received from both local and foreign investors.

*8. NCG: It is our understanding that Freight Agents are not required to publish their tariffs. Why is this so? •

*GACL: Please contact the Ghana Institute of Freight Forwarders Association for more information-as GACL is not involved in fares/rates of airline/cargo operators.

*9. NCG: Why have the companies at the airport not been encouraged and/or contacted to offer their views on how the Airport can be improved.

*GACL: Several stakeholders meetings have been held for every activity in the Airport. We hold frequent and regular meetings with the following stakeholders and their inputs are always captured in our plans.

• GCAA

• Representatives of the Airlines Operators Committee

• Concessionaire

• Car rental companies

• Retailer

• Cargo operators

• Handling companies

• Representatives of the Ground Handlers

• Airlines Representatives

, ,

• Representatives of Fuel companies

• Airport Immigration Service

• Customs at KIA

• Plant Quarantine

• Veterinary Services

• National Security at the Airport

*10. NCG: Our information is that the plan to install Air Bridges will require major alterations to the building to preserve separation of inbound and outbound passengers. The current fuel hydrant system will need to be changed due to repositioning of the Aircraft on new stands and there is still no refueling in the cargo area resulting in Cargo Aircraft occupying stands near the terminal

building to the exclusion of passenger aircraft. How do you react to this technical challenge?

*GACL: The new Parking of Aircraft after the construction activities listed above would be Linear Parking. Thus the Aircraft would park by nosing in and push back. This parking arrangement calls for different routing of the fuel main to reflect the linear parking.

The construction and extension of the fuel mains will run from the Northern remote Parking Apron to the Freight Apron. The construction would be such that, from the fuel farm, the fuel mains would be connected to the Northern Remote Parking apron with a provision for re- fuelling three (3) Aircrafts at the same time. According to the Oil Companies, Fuel Bowsers would also be made available for the refueling of Aircraft. Fuelling would also be available at the present Passenger Apron.

Works on the southern apron including provision of fuel mains and hydrants for Seven- Wide would be commenced and be completed in Six (6) months. After the completion of the Southern Remote Apron, the Hydrants on the Present Passenger apron would be shut down for construction works to commence. It is at this stage that Aircraft would be re-fuelling at the Northern Remote Apron with the Bowsers. The construction at the aircraft Apron is expected to

be completed in two (2) months.

Thereafter number of fuelling points available at KIA for Passenger Aprons would be as follows

1. Northern Remote Apron

2. Passenger Apron

3. Southern Remote Apron

3

7

7

*11. NCG: Why do Customs not have procedures which are prevalent elsewhere in the world to pre clear known cargo from known shippers? Why should customs continue to open 100% imports?

*GACL: Please contact Customs for explanation.

*12. NCG: Is it true that competition relative to cargo handling and cargo warehouse management services has led to a 50% reduction in import and export tonnages over the years and that both Aviance Ghana and AHS Menzies have had their handling rates eroded by competition? Did the two companies at any time request GACl to impose a tariff going

forward?

*GACL: We are aware of the competition but we want to indicate that the reduction in export has nothing to do with competition. More people are now exporting and importing through the sea ports.

*13. NCG: Comparatively, have GACL's revenues/royalties not decreased further in the wake of the competition at KIA in view of the reduction in import and export tonnages? as well as the number of passengers travelling in and out of KIA annually.

*GACL: Royalties increased by 30.5% from 2009 to 2010.

*14. NCG: Can you explain why Air Ghana has GSAs for Foreign Airlines but does not operate any aircraft of its own? How did that come about? And how justifiable is that?

*GACL: One does not need to have an aircraft to operate a GSA. Air Ghana has an Air Operators Certificate (AOC) from GCAA, meaning they have a registered aircraft. Currently they operate charters for both passengers and cargo for domestic and international routes.

Editors Note: The second set of questions and answers will be published in next Monday's edition. Please stay tuned.

The second set of questions and answers will, hopefully, be published in next Monday's edition

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