AIRPORT CITIES DAY 2 STREAM A SESSION 3

1. AIRPORT CITIES
IMPLEMENTING THE STRATEGIC PLAN -
KUALA LUMPUR, APRIL 2 2014
Stream A, Session 3
Paul Neal, Principal, Strategic Project Development
Parsons Brinckerhoff

2.  Alignment of Local & Regional Governance Structure
 Ability To Pass Legislation
 The Importance of Supporting Infrastructure
 Access To Finance
 Presence Of A Skilled & Experienced Workforce
We’ve Identified 5 Key Enablers for Successful Implementation

3.  The Key Stakeholders in the Governance Structure Must be
Aligned
 5 Key Stakeholders In A Typical Governance Structure
• The Airport - Acts As The Primary Hub For Economic Development
• The Principal City/Community Anchoring The Region
• Neighboring Communities
• Support Agencies
• Business & Commercial Partners
(1.1) Co-Ordinated Local & Regional Governance Structure

4.  The Airport Is Typically Responsible For
– Working With Airlines To Develop A Comprehensive Route Network
• Range Of Key Business Destinations &
• Frequency Of service
• Works To Promote The Accessibility & Connectivity That Aviation Enabled
Business Demands
– Development Opportunities Up To The Airport Fence Line
• Includes Direct Aviation Related Land Use
• Plus Development of Airport Land for Related Economic Activity
(1.2) Governance Structure - Airport
Professor J. D. Kasarda
The 3’s
Accessibility, Accessibility, Accessibility

5.  Principal City/Municipality
– Assumes Regional Leadership Role
– Establishes Forum For Multi-Agency Participation
– Promotes Business and Commercial Development
– Acts on a National & International Stage
– Can Empower Airport to Act Entrepreneurially e. g Financial Enhancements to
Airlines Develop Route Network
(1.3) Governance Structure – Principal City/Municipality
Manchester Town Hall Picture: Courtesy of Wikipedia

6.  Typically More Than One Community Surrounds An Airport
– Can Complicate Governance Structure
– Airport Ownership/Location May Differ
– Requires Greater Working Together
– Determines The Shape & Form of Development Beyond the Airport Perimeter
 May Require Multi-Community Forum To Align Objectives
 Concerted Effort Required To Optimize Urban Planning
(1.4) Governance Structure – Neighbor Communities

7.  Supporting, But Essential Agencies In The Governance
Structure
– Transportation Agencies
• Essential To Coordinate The Multi-Modal Corridors Required For Freight &
Passenger Movement
– Economic Development Agencies
– Other Resources Required By Industry and Commerce
• Power
• Water
– Environment & Sustainability
 Business Partners
– Real Estate Developers
– Land Owners
– Investors
(1.5) Other Agencies & Business Partners

8.  Multi-Agency Cooperation Between Landowners, Developers,
Investors, Infrastructure Providers & Public Stakeholders Is
Essential
 Working In Isolation The Airport And the City & Regions It
Serves Will Not Remain Competitive
Conclusion - Governance Must Be Collaborative

9.  Supports Governance Structure & Stakeholder Relations
 Enables Land Acquisition
 Builds Infrastructure
 Remove Barriers to Progress/Dispute Resolution
(2) Ability To Pass Legislation

10.  Remember The Importance of the 3 A’s
 Airport Capacity
– Runway, Taxiway, Apron
– Terminal, Gate
– Maintenance, Catering, Service Facilities
 Airspace Requirements
– May Have National, Even International Implications
(3) Infrastructure Requirements – Air Transportation

11.  Multi-Modal Access Is Essential
• Highway
• Rail
• Port – Sea/Lake
 Transit Arteries Become Development Corridors
(3.1) Infrastructure Requirements – Airport Access

12.  Passenger Rail
• High Speed Rail/Inter-City
• Metro & Transit
• Airport Express - ‘One Seat Ride’ to CBD
• Integrated Air//Rail Terminal
 Freight Rail To Serve Logistics/Cargo Hub Clusters
(3.2) Infrastructure Requirements – Rail Airport Access
www.iaro.com

13.  Business
– Free Trade Zones
– Inland Ports
– Accelerated Customs Clearance
– Tax Incentives
– Knowledge Transfer
(3.2) Infrastructure Requirements – Business Enterprise
 Technology
– High Speed Internet
– Technological Support
– Skilled Workforce

14.  Traditional Funding
– Public Grants & Loans
– State & Local Tax Revenue
 In the U.S Programs Administered By The FAA Have
Historically Funded Airport Capital Projects
– Typically Restricted to ‘On-Airport’ Development
– Insufficient To Meet On-Going Infrastructure Needs
– Challenges Airports To Look For New Options For Financial Support For Capital
Improvements and Expansion
(4.1) Access To Funding – Public

15.  In Response To Limited Public Funding, Airports Are
Increasingly Looking Towards Innovative Financing & P3
Opportunities
– Leverage Private Finance From Traditional Revenue Streams, e. g. Landing
Fees, Airport Terminal Retail, etc.
– Real Estate Funds
– Investment Funds
– Sovereign Wealth Funds
(4.2) Access to Finance - Private

16.  Aviation Enabled Industry Requires Access To Skilled And
Experienced Workforce
– Universities
– Training & Research Centers
 Workforce Requirements
– Accessible, Affordable, Quality Housing
– Schools
– Leisure & Retail
– Access To Open Space, Parks & Recreational
(5) Availability of Local Workforce

17. For more information contact:
nealpj@pbworld.com
+1 202 370 2916
Paul Neal
Principal, Strategic Project Development
Parsons Brinckerhoff
Washington D.C USA
International Air Rail Organization
www.iaro.com