A recent breakthrough in the field of airport management has attracted the interest of the largest international companies specializing in this sector. Indeed, the finalization of the technical study prepared by the International Finance Corporation for global solutions for the management and operation of Egyptian airports by the private sector is highly anticipated. This study determines the framework and timetable for the tender process, with a view to the submission of bids by international companies to win this market.
Among the companies in the front line, we find the French group VINCI, present in the management of 44 airports in France, Portugal, the United Kingdom, Sweden, Cambodia and Japan, the Spanish company ENA, which manages 46 airports on four continents, the Turkish company TAV, the Paris Airports Company, formerly known as ADPK, and the German company Fraport AG, which has already managed Cairo International Airport for nine years, between 2005 and 2015, and which seems keen to return to this market.
Following the meeting between Prime Minister Mostafa Madbouly and the Vice President of the International Finance Corporation for Global Solutions, Emmanuel Nyirinkindi, all the progress related to this subject was reviewed, and the follow-up of the status of technical studies on the involvement of the private sector as a partner of the government in the management and operation of airports was ensured.
Sources within the former Holding Company for Airports and Air Navigation told Al-Masry Al-Youm that this approach aims to optimize and develop performance continuously. It also aims to maximize airport revenues, improve the traveler experience, and strengthen strategic partnerships to attract more foreign direct investment in the civil aviation sector.
According to these sources, this strategy includes the creation of investment zones in and around Egyptian airports, as well as the development and increase of the capacity of Egyptian airports to 72.2 million passengers per year by the end of 2025, compared to 66.27 million passengers in December 2023. This is an intermediate target to reach 110 million passengers per year by 2030.
It is emphasized that Cairo International Airport constitutes a real “second Suez Canal” in terms of resources available to the public treasury. Therefore, a new management could transform this airport into an airport hub, like Dubai Airport.
Finally, the entry of a foreign management company aims to develop resources by expanding commercial activities, especially those located in the customs zone, by increasing the rental value of these commercial activities, which has not changed since 2013 and is estimated at around $13 per square meter.
It is expected that this initiative will allow airports to offer all auctions related to commercial activities in foreign currency, and to oblige all companies to comply with the conditions set out in the terms and conditions booklet.
Overall, the aviation sector will benefit greatly from this initiative, by developing a comprehensive strategic plan for optimal economic exploitation of assets within and outside the borders of Egyptian airports. This will include exploiting the vast areas of land owned by Egyptian airports, and establishing partnerships with regional and international investors specializing in real estate development.
Multi-service logistics zones will also be set up to attract international airlines and logistics service providers, which will significantly contribute to attracting foreign exchange into the country.