China Airport Sector
  Newsletter number 7 – May 2018
 

Introduction

 

The Department for International Trade (DIT) helps businesses export and grow into global markets. We also help overseas companies locate and grow in the UK.

 

Message from Andrew Massey, Deputy Director for Advanced Manufacturing and Transport

Welcome to the second newsletter of 2018 which covers a busy first quarter. The centre piece of our work during this period has been the 12th Government-to-Government Airport Working Group (AWG) meeting in Beijing and subsequent DIT China Airport Mission which took place at the end of March.

The AWG meeting went extremely well with the Civil Aviation Administration of China (CAAC) sharing their future priorities for airport development. The highlight of the meeting was the signing of an Addendum to the AWG Memorandum of Understanding (originally signed in 2006) that was witnessed by HM Trade Commissioner Richard Burn. The Addendum identifies specific areas for both sides to focus our efforts on over the next three years. These areas include particular UK strengths in the Airport sector including:

    1. environmental issues relating to airport construction and operation
    2. operational efficiency of airports
    3. facilitating certification of new technology / products/ systems
    4. third market collaboration as part of the “One Belt One Road” initiative.

To make this happen the Addendum also sets out the desire to bring together academic experts, leading designers and industrial supply chain specialists to enhance both academic and commercial cooperation and to encourage post graduate training for developers and designers involved in airport and broader air transport management and development.

At the end of the formal government meeting I was delighted that Madam Wang, President of the China Civil Airports Association (CCAA) hosted a dinner for the accompanying UK business delegation which enabled the visitors to meet the senior management of CCAA. The following day, Peter Budd CBE and I then led the mission delegates to meet the Xinjiang Urumqi Airport authorities as Urumqi has been identified by the CAAC as a key regional airport for development. The mission members were able to hear from senior management at the airport about the challenges and opportunities that they face, and as a result identified a number of specific opportunities.

After the meeting in Xinjiang the delegation travelled to Xining (in Qinghai) for a two day workshop co-hosted with CCAA, for Small and Medium Chinese Airports. This brought together representatives from 25 small and medium sized airports and design institutes to discuss the issues and challenges they face. Getting this number of airports and the senior level of representation all in one place and at the same time was a “first” for us, and is something we will look to repeat.

Feedback from UK companies was extremely positive, as it enabled them to meet representatives of many more airports than might normally be the case on such visits. The trick now is to convert the goodwill and the commercial leads that these exchanges generated into actually business. We will be working with the companies over the coming months to make this happen. Separately, we are looking to run several smaller missions targeting specific thematic areas (including extreme environments such as high altitude) and will be contacting companies direct to participate.

More generally, if there is anything we can do to support you in-market, please get in touch with me or the team whose contact contact details can be found at the end of the newsletter. We look forward to hearing from you.

Andrew Massey
Deputy Director
Advanced Manufacturing and Transport
DIT Beijing

China Airport Sector News

Nanjing Airport T1 and T2 will be connected
[Source: ccaonline.cn]
On the 23rd October 2017 Jiangsu DRC approved the Nanjing Airport T1 expansion project that will result in T1 becoming connected to T2. The work will involve the total transformation of the 110,653m² site, with new construction work on 45,227m². The project total investment is 2.7billion RMB.

Comparison of Incentive Schemes of Air Traffic Controllers in Germany and the UK
[Source: news.carnoc.com]
Following the CAAC ATMB visit to the UK to visit NATS and Heathrow Airport in November 2017 an article about a Comparison of Incentive Schemes of Air Traffic Controllers in Germany and the UK was released in www.CARNOC.com (a civil aviation specific website with monthly visitor volume of 2.25million), outlining basic remuneration schemes and training methods of DFS and NATS. Please follow the link to read more about this (Chinese content with English abstract).

Hainan Airport Group to facilitate the infrastructure build in order to promote the development of Free Trade Zone
[Source: news.carnoc.com]
According to guidance issued by the State Council, the expansion project of Haikou Airport and the preliminary work at Sanya New Airport, Zhanzhou Airport and Wuzhishan Airport should be the driving force to help deepen the reform and opening of Hainan province.

With a total investment of RMB977 million, the second phase expansion of Yichang Three Gorges Airport has been officially launched
[Source: news.carnoc.com]
After the project is completed, the Three Gorges Airport is expected to achieve a passenger throughput of 5 million as an international hub for the region.

Turpan Airport renovation and expansion project will start in August 2018
[Source: news.carnoc.com]
With a total investment of nearly RMB690 million, Turpan Airport is planning to extend the 2,800m runway to 3,200m and reconstruct the terminal building to include an international capability. After the project completes in 2020, Turpan Airport will be able to serve as an alternate airport for international flights.

Haikou Meilan International Airport awarded Best Regional Airport in China by SKYTRAX
[Source: news.carnoc.com]
On the 22nd March in Stockholm, Haikou Meilan International Airport was awarded the “Best Regional Airport” by SKYTRAX for the third time for its excellent customer service experience.

New China-UK direct flights

    1. Changsha - London Heathrow by Hainan Airline, inaugural flight launched on 23rd March 2018
    2. Tianjin -Xi’an- London Heathrow (previously Gatwick) by Tianjin Airline, inaugural flight scheduled on 7th May 2018
    3. Wuhan – London Heathrow by China Southern Airlines, inaugural flight scheduled on 30th May

The Civil Airport Distribution Development Plan

 

According to “The Civil Airport Distribution Development Plan”released by the Chinese government, by 2020 the number of airports in China will have reached 260, with a total investment of CNY1.5trillion and have three world-class airport clusters by 2025.

 

“The 13th Five-year Plan” and “The Belt and Road Initiatives” will create enormous business opportunities for the whole Chinese airport industry.

 

Key airport projects are listed below. For the original document (Chinese only), please visit http://www.ndrc.gov.cn/zcfb/zcfbghwb/201703/W020170315444446628935.pdf

 

If you would like this emailed to you in English please contact one of the team.

 

13th Five-Year period Transport Airport Construction Project

 

Airport Name

Continued build airport (30)

Beijing New Airport:

Chengde, Linfen, Holingol, Zhalantun, Ulanqab, Matsubara, Baicheng, Jiansanjiang, Wudalianchi, Sanming, shangrao, Xinyang, Shiyan, Wugang, Yueyang, Qionghai, Xisha, Nansha, Wushan, Bazhong, Huairen, Cangyuan, Lancang, Longnan, Guoluo, Qilian, Shache, Ruoqiang, Tumxuk

New airport (44)

Chengdu New Airport:

Xingtai, Suzhou, Shuluun Huh, Hexigten Banner, Arap, Dong Ujimqin Banner, Siping, Suifen River, Lishui Jiaxing, Wuhu/Xuancheng, Haozhou, Ruijin, Bengbu, Heze Zaozhuang, Shangqui, Anyang, Lushan, Jingzhou, Ezhou/Huanggang, Chenzhou, Xiangxi, Loudi Shaoguan, Yulin, Wulong, Leshan, Ganzi, Weining, Qianbei, Honghe, Yuanyang, Nujiang, Fugu, Baoji, Dingbian, Pingliang, Gonghe, Shizuishan, Zhaosu, Yutian, Taxkorgan

Reconstruction and expansion Airport (139)

Including: Guangzhou Pudong, Hongqiao, Shenzhen, Chengdu, Kunming, Chongqing, Xi’an, Hangzhou, Changsha, Wuhan, Urumchi, Nanjing, Zhengzhou, Sanya, Haikou, Dalian, Shenyang, Guiyang, Harbin, Tianjin, Nanning, Fuzhou, Jinan, Taiyuan, Changchun, Nanchang, Lanzhou, Ningbo, Hefei, Shijiazhuang, Yinchuan, Xining, Lhasa.

 

Please contact the China team for the full list of airports.

Relocation airport (19)

Qinhuangdao, Hohehot, Yanji, Lianyungang, Xiamen, Wuyishan, Qingdao, Weifang, Jining, Zhanjiang, Wuzhou, Yibin, Luzhou, Dazhou, Zhaotong, Yan’an, Ankang, Tianshui, Qiemo

 

 

 

 

Preliminary work (51)

New airport (46)

Pearl River Delta Hub (Guangzhou) Airport, Sanya New Airport, Lhasa New Airport:

Hengren, Liaoyuan, Dunhua, Baishan, Tongyu, Yushu, Huichun, Raohe, Hulin, Hegang, Yabuli, Suzhou, Chuzhou, Putian, Zhangzhou, Ningde, Pingtan, Fuzhou, Liaocheng, Yunfu, Yangjiang, Hezhou, Qinzhou, Zhangzhou, Yanzhong, Panxian, Luodian, Mongla, Qiubei, Xuanwei, Yadong, Pulan, Longzi, Huashan, Linxia, Wuwei, Huangnan, Alear, Booker Searl, Hejing, Ursula/Kuitun, Barkol East Junggar Basin

Relocation airport (5)

Dalian, Meixian, Yongzhou, Hailar, Mudanjiang

 

13th Five-Year period Air Traffic Management Project

 

Project Name

 

 

 

 

 

 

 

 

 

 

Key Project

    1. Beijing new airport air traffic control project (including Beijing terminal control center)
    2. Civil aviation operation management center and meteorological center project
    3. Civil aviation information management center project
    4. Civil aviation airspace operation monitoring and airspace evaluation system engineering
    5. Civil aviation communication network engineering
    6. Eastern and western regions ADS-B project

 

Terminal Control: Shanghai, Guangzhou, Zhanjiang, Wuhan and Sanya terminal control center project

 

Regional Control: Urumqi regional control center, Beijing, Shanghai and Guangzhou regional control center renovation project

 

Bureau, Station Renovation: Anhui, Shandong air traffic control sub-branch facilities improvement project

 

Comprehensive: Radar engineering project, Severe convective weather short/temporary forecast system

 

Airport Facilities: Chengdu, Qingdao and Xiamen new airport traffic control project; Zhanjiang airport air traffic control project; Pudong airport 4th/5th runway air traffic control project; Kunming airport 3rd runway air traffic control project; Zhengzhou, Wuhan and Urumchi airport air traffic control project.

 

 

 

 

 

Preliminary Research Project

  1. GNSS performance monitoring and enhancement system based on GRIMS – Aviation Data Communication Corporation (ADCC)
  2. Kunming, Hangzhou, Nanjing, Changsha and Zhengzhou terminal control center project
  3. Sanya, Chengdu and Xi’an Regional control center renovation project
  4. Civil Aviation ATC equipment operation management system, ATC technical support testing base ii, civil aviation ATC information iii
  5. Preliminary work on Regional Airport reconstruction and expansion of air traffic control project

 

 

China Airport Developments

Lanzhou Zhongchuan International Airport – Phase III Expansion

The third phase of the expansion project was approved by the central government in April 2017. The airport is expecting construction to start in early 2018 and to be open for operation by the end of 2020. Currently the airport site is in the process of housing demolition, the start date of construction is to be confirmed.

The short term plan is to build a 4000m runway, a 343,000sqm Terminal 3, a 50,000sqm Integrated Transport Centre, 69 aircraft stands and other affiliated facilities such as communication, navigation, weather system, etc. Total estimated budget is around RMB23billion (equivalent to GBP2.67b).

Traffic forecasts are that by 2025 passenger numbers will be 30m and cargo at 200,000 tons. The longer term plan is to reach a capacity of 60m passengers per annum and1m tons of cargo, 4 runways, 119 aircraft stands and 343,000sqm terminal buildings by 2045. Following our visit to Lanzhou during the China Airport Mission in November we are planning to revisit the airport for further details on procurement opportunities. Please contact Aimee Liu if you are interested.

Xinjiang Airport Group - Three continuing projects and four new projects

During our Trade Mission to Urumqi we learnt that besides the ongoing expansion project of Urumqi Diwobao International Airport, Xinjiang Airport Group plans to invest in 2018 up to RMB1.91billion on fixed assets including:

Three continuing projects with an investment budget of RMB450 million:

    1. Ruoqiang Airport new project
    2. Tacheng Airport
    3. Altay Airport renovation and expansion project.

Four new projects with an investment budget of RMB1.46 billion

      1. Aksu Airport
      2. Kashgar Airport
      3. Yining Airport
      4. Turpan Airport renovation and expansion project

Please contact Aimee Liu if you are interested.

Yantai Penglai International Airport

Yantai Penglai International Airport was completed in 2014 and became operational in May 2015. It is 43km outside downtown of Yantai City in Shandong Province. The airfield code is 4E and the main facilities include a 3400m runway, 90,000sqm terminal for both domestic and international passengers, 400,000sqm apron, 39 aircraft stands. The airport can accommodate Boeing 747s and is defined as the national Category One aviation port.

With total investment of 4billion RMB, the airport is carrying out a second phase expansion in the west of Terminal 1, which includes a 200,000sqm new terminal, 400,000sqm apron, viaduct, ground transport centre (GTC), etc. A competitive tender is currently underway for the terminal concept design with a final result is to be announced soon.

Sanya New Airport

Sanya New Airport Investment and Construction Co. Ltd. is the project company set up in 2008 with paid-in capital of RMB11.5 billion .

The State Oceanic Administration has issued a second environmental impact assessment report for a public consultation process, and this has resulted in a final approval by the central government for “go ahead “ of this new major airport construction project. Work is due to start imminently.

Please contact Winnie who is monitoring procurement opportunities.

Second Airport in Guangzhou

According the recently released draft in February of the Guangzhou Urban Master Planning 2017-2035 the proposed second airport in Guangzhou is very likely to be located in Zengcheng Zhengguo Town, although this has not yet been officially confirmed.

The purpose of the second airport will be to serve nearby population centres to relieve the pressure on the existing Baiyun International Airport and to serve as part of the Guangzhou international aviation hub infrastructure facilities. Given the extremely complicated air space situation in the Pearl River Delta region it is expected that it will take years before the second airport becomes operational. Winnie is monitoring this and will provide any updates when known.

Heads up on future plans at airports​

The CAAC Design Institute has provided the information below on future plans at airports. These are still in the early planning/construction approval stages. If you are interested in some of the projects please make your interest known to the team.

Airport

General Information

2018

Zhejiang Lishui Airport (new build)

1 new runway, terminal and ancillary facilities

Fesability study by Q1 2018

Xiamen New Airport (relocation)

2 new runways, terminal and ancillary facilities

Fesability study by Q3 2018

Shangdong Heze Airport (new build)

1 new runway, terminal and ancillary facilities

Fesability study by Q3 2018

Henan Anyang Airport (new build)

1 new runway, terminal and ancillary facilities

Fesability study by Q2 2018

Hubei Ezhou Airport (new build)

2 new runways, terminal and ancillary facilities

Fesability study by Q2 2018

Guangdong Shenzhen Airport (expansion)

1 additional runway and ancillary facilities

Project set-up application by Q2 2018

Guangdong Shaoguan Airport (military and civil combined)

Extension of existing runway, new terminal and ancillary facilities

Fesability study by Q1 2018

Shann’xi Xi’an Airport (expansion)

3 new runways, terminal and ancillary facilities

Project set-up application by Q2 2018

Qinghai Xining Airport (expansion)

Extension of existing runway, new terminal and ancillary facilities

Project set-up application by Q2 2018

Xinjiang Urumqi Airport (expansion)

2 new runways, terminal and ancillary facilities

Fesability study by Q2 2018

Xinjiang Shaosu Airport

(new build)

1 new runway, terminal and ancillary facilities

Fesability study by Q2 2018

 

Highlight – DIT China Recent Activities

The 12th Airport Working Group (AWG) Meeting and DIT Airport Trade Mission to Xinjiang and Xining, 26th – 29th March 2018

On the 26th March the DIT with the CAAC and CCAA jointly hosted the 12th annual AWG meeting in Beijing. Witnessed by HM Trade Commissioner Richard Burn, the DIT and CAAC signed the Addendum to the 2006 Memorandum of Understanding. As the most important deliverable to the 12th AWG, the Addendum sets out the framework on how the UK and China can work even more closely together in key areas that include the following:

    1. Enhancing both academic and commercial cooperation and post graduate training for developers and designers involved in the airport sector.
    2. Joint work on certification issues related to new technologies / systems / products.
    3. Third market collaboration along The Belt and Road Initiative.

The subsequent airport trade mission was also a great success. It was jointly led by led by Peter Budd CBE, Chair of the UK Airports Advisory Council and Andrew Massey, the Deputy Director of AMITT, DIT/British Embassy Beijing. With 15 UK companies in the delegation we managed to bring the first ever UK airport trade mission to meet with Xinjiang Airports Group to learn the latest developments of the Urumqi Airport Expansion Project and promote UK services and products to the senior management from the airport group.

More importantly, the delegates had the opportunity to build relationships with the airport group which we hope enables them to follow up directly with the airport about these developments and other projects in the future.

The two day Small and Medium-sized Chinese Airports Workshop on Innovation and Development in Xining was another highlight of the week. Co-organised by the DIT Airport Team and the CCAA it was effectively the first deliverable flowing from the amended MOU. This great event enabled UK companies to meet and engage with 52 representatives from 25 Chinese small and medium sized airports and discuss the challenges and opportunities facing these airports. Discussions explored best practice solutions to address these areas.

The mission was a tremendous success and the DIT is examining how to use this new platform to work on building even greater bilateral cooperation and opportunities for UK suppliers in China.

     

DAY 1: The 12th Airport Working Group Meeting in Beijing

     
     
     

DAY 2: Roundtable Meeting with Xinjiang Airports Group in Urumqi

     
     

DAYS 3 and 4: Small and Medium Sized Chinese Airports Workshop in Xining

 

 

 

Upcoming Events and DIT Contacts

The 8th China Airport Commercial and Retail Summit, Xi’an, 12th and 13th September 2018

A leading airport commercial and retail event in China, hosted by Xi’an Xiangyang International airport, supported by CCAA and organized by Pincaux Media. Speakers may include IATA, Shanghai International Airport and Beijing International airport etc. One to One meetings will be scheduled with attending Chinese airports.

If you are interested and would like further information, please contact Pincaux Media:
Tel:+86(21) 5888 5292 Fax:+86(21) 5888 5393 Email:marketing@pincaux.cn

2018 Inter Airport China, Beijing, 5th to 7th September 2018

One of China’s largest trade show in the field of airport construction. VIP buyers may include 28 airports whose capacity has reached over 10 million in China, the top 10 Chinese airlines and civil aviation companies including the Civil Aviation Management Institute of China, China Academy of Civil Aviation Science and Technology, the Institute of Comprehensive Transportation Of National Development and Reform Commission, China International Engineering Consulting Corporation, The Construction Headquarters of Beijing Daxing International Airport (i.e. Beijing New International Airport), The Construction Headquarters of Chengdu Tianfu International Airport, East China Architectural Design and Research Institute, The Planning and Design Institute of China Airport Construction Group Corporation of CAAC, China Aviation Planning and Construction Development Co., Ltd., Air Force Engineering Design and Research Bureau and Kunming Changshui International Airport etc.

BASEA has booked a Pavilion space for Inter Airport Beijing 2018.

Initial enquiries should be made to Brenda Jackson at BASEA on +44 (0)1202 585 505 or info@basea.org.uk.

DIT Contacts

Yuki Ren
Head of Airports and Rail
+86 152 1327 3764
yuki.ren@fco.gov.uk

Chongqing
Aimee Liu
+86 152 1327 4136
Aimee.liu@fco.gov.uk

Guangzhou
Winnie Zhong
+86 139 2504 7380
winnie.Zhong@fco.gov.uk

Shanghai
Joy Gu
+86 139 1861 3790
joy.gu@fco.gov.uk

With support from Airport Specialists:

Beijing
Wei Meng
+86 138 1044 8826
wei.meng@ukgovinchina.com

London
Amanda Lightbody
+44 (0)7825 195 976
Amanda.Lightbody@trade.gov.uk – please note new email address

 
 
 
 

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