Link Abertis Magazine N. 5 December 2011


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Link Abertis Magazine N. 5 December 2011

  1. 1. IntERvIEws Francisco Reynés, Chief executive officer of abertis P. 12 Joaquín Almunia, European Commissioner for Competition P. 24 ARtIClE abertis and Goldman Sachs take over the management of two toll roads in Puerto Rico P. 16DECEMBER 2011 nº05 - SECOnD PERIOD abertis reinvents itself abertis has completed the process of restructuring its businesses
  2. 2. editorial Public-private initiatives and revitalising the economy For practically 15 years, growth in our a financial opportunism that seeks to relatively country has been based, to a large quickly monetize certain assets in view of“IT IS TIME extent, on the high level of resources available adverse economic conditions, but rather onTO TACKLE THE to Public administrations. tax revenue came the basis of a long-term relationship of mutual partly from real-estate development, but also trust between public and private bodies.UNAVOIDABLE TASK from the european Union’s cohesion and it is time to tackle the unavoidable taskOF CORRECTING regional development funds, from which of correcting the deficit, but without abandon-THE DEFICIT, spain has benefited for over 25 years. ing policies that will boost the economy. i willBUT WITHOUT these short-term revenues –which many just give one example of what can be done inABANDONING considered to be structural, taking on current this respect in the infrastructures field. this isPOLICIES THAT expenses against non-current income– have the implementation of the eurovignette direc- been sharply reduced by the collapse of the tive, which France and other eU countries willWILL BOOST property market and the fact that the euro- have implemented by 2012-2013. if appliedTHE ECONOMY” pean funds have practically disappeared, in spain, this would bring in resources that now that spain has achieved convergence with could be used to both avoid holding up invest- the eU average.thus, in a context of pressures ments that are currently threatened with an on public resources, we are facing up to the indefinite delay and maintain the existing road challenge of sustaining, over the long-term, network while facilitating deficit reduction in public services which include education, the a way which is more equitable and socially health service, and implementing employment acceptable than other austerity measures. and immigration policies, while the treasury is in addition to implementing the eurovi- not receiving the revenue this requires. gnette, certain road corridors could be turned the state therefore needs to explore ways into concessions.this would bring in additional of working with the private sector in the areas revenue in the short term while freeing up of finance and management that will make it resources currently spent on recurrent main- possible for the government’s budget to meet tenance expenses. this was, for example –as high-priority needs in the fields of unemploy- described in this issue of our magazine– the ment, health, social care, education and immi- option chosen by Puerto rico when it awarded gration without unreasonably calling into a 40-year concession for one of the island’s question the continuity of investments in serv- main road links. ices and infrastructures that are key to boost- implementing the eurovignette and opt-Salvador ing the economy in both the short and medium ing for the concessions model would move usalemany term and ensuring its competitiveness and towards a homogeneous pay-per-use modelPresident OF abertis sustainability. it is possible to reconcile the for high-capacity road corridors, as is already demand for infrastructures with limitations on the case in neighbouring countries.the conces- public resources. We must recognise the role sions model is also suitable for both increasing played by the public sector in many areas: in competition between airports and managing the planning processes –which should extend them individually. in this issue, Hans-Martin beyond the short cycle of policies and budgets; niemeier, an expert in the field and a Professor in finance models– and, where appropriate, at bremen University, also discusses this model pricing models; and in controlling and regulat- as applied to airports. ing competitiveness in those sectors in which Public-private partnerships will not resolve companies manage networks and are therefore the current crisis on their own, but there are close to the concept of natural monopolies. undoubtedly still, in europe and world-wide, We should also recognise the role that certain infrastructure investments which would the private sector can play in financing, imple- be highly profitable in socio-economic terms, menting, operating and managing infrastruc- which should be implemented and would sup- tures. this role must not be undertaken from port economic growth. n DECEMBER 2011 n Link abertis n 3
  3. 3. nº05 SuMMary 12 16 08 Abertis The Group completes the process of restructuring its businesses 52 60 24 20 cOmpAny 30 equipment 34news link abertis is published by Abertis Infraestructuras, SA Av. del Parc Logístic, 12-20. link abertis Airport management Operations Centres Toll roads 42 08040 Barcelona. Tel.: 93 230 50 00. Fax: 93 230 50 02. 1st International Seminar Ensuring road safety The AP-4 has its 40th Birthday 72 edited And prOduced by: abertis Studies on private sector airport on toll roads while sanef 45 and Communication Corporate Direction. 06 management improving traffic flow Increasing safety editOriAl bOArd: Salvador Alemany, Francisco Reynés, José Aljaro, Josep Maria 22 34 awareness on toll roads Coronas, Toni Brunet, Juan María Hernández Recognition 51 Road safety 58 Puértolas, Sergi Loughney and Joan Rafel. OpiniOn Customer service 45 cOrpOrAte imAge And prOductiOn: Salvador Alemany was presented The abertis foundation Erik Ribé y Bernat Ruiz. Hans-Martin Niemeier Article trAvel sanef and sapn use cOntent cOOrdinAtOr: with a prize for his work on ICTs analyses the mobilityAre European airport policies Cercle d’Economia Meeting Girona mobile phone technology Alícia Cobeña. Creu de Sant Jordi 52 needs of old people written by: Alícia Cobeña, Gemma Gazulla, on the right track? Debate on austerity A walled medieval jewel to provide road users with Investor’s link Marc Gómez and Leticia Gonzálvez. The president of abertis Carbon footprint 60 38 cOntributOrs: Christine Allard, 12 and deficit control information about road Carolina Bergantiños, Bob Bullock, receives Catalonia’s Study by the abertis foundation 24 works affecting their routes Julio Cerezo, Joan Fontanals, Sagrario Huelin, highest honour into polluting emissions from Astrid Noury, Vanessa O’Connor, Enric Pérez, 66 interview Article Corporate Tour 46 Mercedes Pérez-Cruz, Roser Prenafeta, Marc Ribó, UIMP 53 the abertis toll roads Albert Rossell, Bernat Ruiz, Beatriz Sanz, abertis, Francisco Reynés interview Infrastructures abertis CEO visits the US, 62 abertis autopistas, abertis telecom, Argentina and Chile abertis telecom at the 25th abertis airports and abertis foundation. “abertis is focussed on Joaquín Almunia The Cercle d’Infraestructures results prOduced by: Global Gathering 2011 48 Telecommunications Congress overseas growth and “We must work on analyses methods of January-September 2011 Ediciones Reunidas, SA (Grupo Zeta). on improving its efficiency” opening markets, financing public works abertis shares its future abertis-IESE Chair 54 brAnding Good figures from the Group Revistas Corporativas Barcelona. Consell de Cent, 425. 08009 Barcelona. 16 not closing them” in times of crisis corporate challenges Fifth anniversary of New image as it looks towards the end Tel.: 93 265 53 53. Manager: Òscar Voltas. Editorial coordinator: 28 40 New executive team 49 the abertis research project abertis rolls out a new of the financial year Nuria González. Chief writers: Toni Sarrià and 72 abertis’ Steering Committee Interview 55 advertising campaign Olga Tarín. Lay-out: Cristina Vilaplana Article and Xavier Julià. Edited by: Ares Rubio. is reorganised Xavier Vives, director 63 Legal deposit: B-16432-2010. Puerto Rico Article Article abertis shareholder care line: abertis and Goldman The Eurovignette, Truck Parks New satellite 50 of the abertis-IESE Chair shArehOlders 902 30 10 15. Sachs will take over the under discussion The first service areas Progress in developing the 8th abertis Prize 56 in brief General Meeting 2011 abertis accepts no responsibility management of two Seminar organized by ASETA specifically for truck drivers Hispasat AG1 satellite, the Competition for research into Notes on what’s Approval of the process for the opinion of its contributors in the articles published, nor does toll roads in Puerto Rico and Santander’s UIMP have been opened on the AP-7 first in the Small Geo mission infrastructure management new at abertis of restructuring the Group it necessarily identify with their opinion.4 n link abertis n DECEMBER 2011 DECEMBER 2011 n link abertis n 5
  4. 4. opinion By Is EU Airport Mild forces of competition Airport managers claim that airports face tough competition. There is some truth in aiRpoRt poliCy nEEDs to BE REfoRMED costs rise and no effort is necessary to gain traffic by better utilization of capacity. Only ata few continental airports such as Buda- Policy on the Hans-Martin this. Airports have never been pure monop- fuRthER. suCh as pest, Copenhagen and Hamburg is price cap nieMeier olies without any substitutes. There have regulation practiced successfully; the regu- REfoRM shoulD alwaysbeen some unattractive substitutes. lator determines the price level for a certain Director of However, things have begun to change. aDopt thE pRinCiplE period of time so that it is profitable to right track? the institute for Transport and This change is visible at small regional air- to REgulatE lEss, reduce costs and to change the price struc- Development at ports which have to decide to be served by But MoRE EffECtivEly ture to gain more traffic. Bremen University Ryainair or left undeveloped. Also some of Applied Sciences. larger airports face competition.The publicly Reform of EU Airport Policy He is Chairman of Hans-Martin Niemeier describes the possible scenarios owned Manchester airport, for example, paRtially pRivatizED Airport policy needs to be reformed further. the German Aviation the industry is moving towards in its privatization process which was regulated like the three London aiRpoRts pERfoRM Such as reform should adopt the principle Research Society BAA airportshas been de-designated from to regulate less, but more effectively. It is (GARS) and managing regulation in 2007 because nearby Liverpool lEss EffiCiEntly not necessary to regulate all airports with member of the In the good old days of regulated air 1996 which has decreased prices for these airport has been developed as an attractive than fully more than five million passengers as the Scientific Advisory transport the role of airports was services and has led to modest changes of alternative providing today even intercon- pRivatizED anD EU directive demands.Use a credible threat Board of the Hamburg clear. Airports were serving the national the market structure of ground handling. tinental services. of regulation like the UK regulator. In addi- Aviation Conference . flag carriers and both worked together The 1995 directive on slot allocation has These are encouraging transformations statE-ownED tion regulate and increase competitive He was a member to serve those who could afford the luxury been revised several times trying to improve but they rarely occur at major city airports forces. Implement price caps with strong of the Scientific of travelling by air. However liberaliza- the administrative measure to reduce con- on the Continent. Take the example of incentives for cost savings and efficient pric- Advisory Group tion of airline regulation and airport priva- gestion. Finally, in 2009 the directive of Amsterdam airport. Business travellers pre- The failure becomes visible if airports ing and investment. Design a competitive for the Economic tization has changed this. It has brought airport charges has passed parliament. fer Amsterdam airport over the alternative are allowed to raise the level of charges in landscape with open skiesand market bases regulation of the large gainsto consumers by slashing air- Itstipulates among other things that an of taking the high speed train or travelling times of criseswhen airlines are desperate slot markets. n German Air Traffic Management System. fares, but the once cozy relationship turn- independent regulator is to be established via Brussels and Düsseldorf airport. Amster- to cut costs. It also becomes visible if airports edinto a stressful one. in each member state. dam faces competition in the long haul do not adjust the structure of charges to He has written IATA, the international airline repre- No doubt, the EU has been actively market but in the origin and destinationtraf- price scarce capacity that is lowering off extensively in the sentative claims that airports are exploiting trying to reform the airport sector, but fic it has persistent market power at least peak charges and increasing peak charges. area of air transport airlines while according to ACI the airport is this enough? Will the goal of fair and as long as small regional Dutch airports are All this is a result of cost based regulation economics and is co-editor of the books trade association airports are competing efficient pricing be achieved given the cur- not independently owned and developed. because charges can be raised whenever Airport Competition, with each other and are constrained by rent liberalization, privatization and com- Of course, there could be more com- Airport Slots, mighty global airline alliances. No doubt, petition trends? petition. The BAA airports should have bet- The Economic the value chain of air transport does not ter been separately privatized and the same Regulation of mirror at all a smoothly operating supply Unfulfilled Hopes is true for the two Paris Airports. But even european airports Airports. His primary chain in competitive industries and gives of Airport Privatization then there would remain a few airports with that have been research focuses large opportunities for improvement. Stud- The privatization of BAA in 1997 created persistent market power. fully or partially on airport regulation ies show that a number of European airports great expectations. Sooner or later the state privatised and privatisation. have high costs especially the German air- owned enterprises with low incentives for Regulation: Halfway Reforms at best ports which have not outsourced ground cost efficiency and service quality would be Are airports regulated by institutions which handling. Airport capacity is mispriced at replaced by innovative cost efficient firms guarantee a fair process and which set incen- busy airports with billions of welfare losses. delivering services at market prices with a tives towards cost efficiency and fair and What policy should be adopted? Is the range of quality users demand. These hopes efficient pricing? The answer to this question EU Policy on the right track? In this article have not been fulfilled. Privatization has not is no. Out of the 27 member states of the I argue that the EU attempts fall short changed the nature of the industry on the EU only Austria, GB, Ireland and The Neth- of their own goals and a major policy regime continent as it has in the UK. Privatization erlands have an independent regulator. The change is necessary. has stopped somewhat in the middle. It has EU Directive on charges is completely right made airports more profit-oriented, but the in demanding a separation of ownership EU Policy typical private airport on the continent is a and regulatory functions. But will it succeed? partially privatized airport (very often dom- Airports fully In 1995 the EU has set out a clear pic- It is too early to tell, but the first signs are privatised ture how airports should operate. Airports inated by the state).Partial privatization has alarming. Germany will implement the should in particular operateat minimum some positive effects. Airports have devel- directive in such a way that airports are Airports partially cost and excess demand should be effi- oped non aviation business and also slightly independently regulated if the ministry of privatised with a ciently rationed by giving scarce slots to cutcosts dueto ground handling liberaliza- finance owns the airportand the ministry majority interest those with the highest willing to pay. tion. But overall partially privatized airports of transport regulates charges. Such a pecu- Airports partially After deregulating the airline industry- perform less efficientlythan fully privatized liar interpretation of independence cements privatised with a the EU has deregulated ground handling in and state-owned. a system of regulatory capture and failure. minority interest6 n link abertis n DECEMBER 2011 DECEMBER 2011 n link abertis n 7
  5. 5. reportrestructuring the businessesabertis reinvents itself were other significant resolutions on share- was “a moment of profound transformation, holder remuneration policy, was a watershed of rethinking the bases on which we operate”. A DECADE AftER moment for the company. For Salvador Alemany, with this reorganiza- thE CoMpAny ChosE thE The Shareholders’ Meeting approved tion “we aim to bring forward those decisionsThe Group, which is now focused on managing its three businesses –toll roads, several resolutions which specified the proc- that will make it possible for all the abertis pAth of gloBAlisAtiontelecommunications and airports– begins a new stage in its history, one in which it is ess of restructuring the Group’s five busi- businesses to enjoy the conditions they need AnD gEogRAphiCAlaiming for selective growth, greater globalisation and improving its operating efficiency nesses into two independent companies. in order to continue to grow”. According to DivERsifiCAtion, This restructuring was announced in February the president of abertis, it is a question of ABERtis is onCE MoRETexTo abertis | FoToS abertis / Thales Alenia Space and created Abertis Infraestructuras, which giving the company “greater focus”, by con- manages the toll roads, telecommunications centrating on the toll roads, telecommunica- REinvEnting itsElf It is not the first time this has hap- toll road business in Spain– chose the path to grow both its results and its shareholder infrastructures and airports businesses and tions and airports businesses, which demand pened in its still short history. Indeed, of globalisation and geographical diversifica- remuneration policy through years which Saba Infraestructuras, which comprises the high levels of of the company’s hallmarks has been its tion, abertis is once more reinventing itself. were marked by the greatest financial and car parks and logistics parks businesses. The chief executive officer of abertis,capacity to adapt to the business environ- And it’s reinventing itself after multiply- economic crisis the world has known since Francisco Reynés, when speaking about thement and, at each juncture, to identify the ing its principal figures by six over the last few the crash of 1929. The Shareholders’ Meet- A Profound Transformation business restructuring, said that it “allowsright path to take. A decade after the com- years, with its own successful infrastructure ing in June, in which the reorganisation of As the president of abertis, Salvador Ale- the Group to focus its activities in order topany –which at that time was focussed on the management model and having continued the Group’s businesses was approved, as many, said, in his speech to the Meeting, it continue to grow in this financial environ- The delay in Spain’s recovery is compensated for by increased traffic in France and Latin America. DECEMBER 2011 n Link abertis n 9
  6. 6. remaining aware of the need to extend it made no corporate acquisitions during the the lifetimes of the existing concessions ACCoRDing to fRAnCisCo financial year–. amongst its assets. On the prospects for 2011, Francisco REynés, fRoM now on, Reynés stated that the toll road business The process of spinning off thE nEw ABERtis will “shows that the increases in traffic in France the car parks and logistics parks oRiEntAtE its stRAtEgiC and Latin America are continuing to com- has been completed ChAllEngEs to pensate for the delay in Spain’s recovery”. Last October, the 78.06% of Saba Infrae- He emphasised that “the improvement “sElECtivE gRowth, structuras shares still held by abertis were in the operating margin after the first sold to the consortium made up of Caixa- CREAting shAREholDER quarter results shows that operating effi- Holding, Proa Capital and Torreal. abertis vAluE, AnD gREAtER ciency has increased”. received a total of 311.5 million euros from gloBAlisAtion AiMED Francisco Reynés indicated that, for the sale of the shares. This did not affect the this year, the Group’s management objec- At DivERsifying Risk” Group’s 30 September figures. tives would be focused on improving opera- This transaction concludes a process tional efficiency both in terms of invest- which began on 23 February when abertis ments and costs and expenses, would give announced that it was initiating the restruc- priority to debt reduction, and to a selec- turing of its businesses into two companies: tive focus on the market’s opportunities Abertis Infraestructuras (a public company, for growth. “We have both the strong bal- made up of the toll road, telecommuni- ance sheet and the will that are necessary cations and airports businesses) and Saba for us to continue to grow and generate Infraestructuras (a private company, made value for shareholders”, he said. n up of the car parks and logistics parks businesses). On the 17th of May, abertis reported that it had signed an agreement with a consortium made up of Caixa- Holding, Torreal and Proa Capital under which they would become shareholders in Saba Infraestructuras, together with those abertis shareholders that decidedment of scarce resources, while maintaining With the new bring to abertis telecom; and the Spanish to take the expected dividend in the forma healthy balance sheet and profit and loss restructuring, Government’s plans to award a concession of Saba shares. managementaccounts”. Francisco Reynés also emphasized of airports and contract for the Barcelona-El Prat airport. On 25 July, abertis announced that athat reorganising the Group’s businesses into infrastructures The president of abertis said that the total of 2,681 shareholders, who togethertwo independent companies “strengthens passes into the opportunities for businesses like ours are represent 21.94% of the total abertis shares, hands of Abertisthe company’s balance sheet, which will infraestructuras. today –and will be over the next few years– had opted to receive their dividend in thebenefit the shareholders”. clearly more numerous and, surely larger, form of Saba Infraestructuras shares. This Francisco Reynés explained that the than they have been in this first decade of group of shareholders included the 20.7%impact of the restructuring on abertis’ prin- As sAlvADoR AlEMAny 21st Century. shareholding held by CaixaHolding.cipal figures will be limited. The proforma Having completed the process offigures for the 2010 results, after taking out sAiD “this is A MoMEnt restructuring its businesses and the sale The Group’s growth in 2010the car park and logistics parks businesses, of pRofounD of its shareholding in Atlantia, abertis and its prospects for 2011show an estimated impact on abertis’ fig- tRAnsfoRMAtion, of has begun a new phase –in a macroeco- In his speech to the shareholders, Franciscoures of -5% in revenue, -4% in EBITDA and REthinking thE BAsEs nomic context which is especially com- Reynés emphasised that “in 2010 abertis-1% in net profits. The net debt is reduced plex–. As Salvador Alemany, the president achieved sustained growth in revenues,by 5% to 13,963 million euros, and the net on whiCh wE opERAtE” of the company, recently explained, “today, EBITDA and net operating profit, in an envi-debt/EBITDA ratio also improves, to 5.8%. the process of financing new projects is more ronment that is complex and uncertain”.The demanding and expensive, and available chief executive officer explained that theFuture Prospects ABERtis will ContinuE funding is more limited. It therefore requires keys to the Group’s progress during the finan-The chief executive officer pointed out to gRow, with thE from us greater capitalisation and balance cial year have been: geographical diversifica-that, from now on, the new abertis would AiM of inCREAsing sheet resources.Additionally, it is more heav- tion, the growing visibility of businesses suchorientate its strategic challenges to “selec- ily conditioned by the evaluations of ratings as telecommunications, the increases in traf-tive growth, creating shareholder value, and thE pREsEnCE of companies and the way in which country fic on toll roads in France and Latin America,greater globalisation aimed at diversifying intERnAtionAl BusinEssEs risk is changing moment by moment”. And the control of operating expenses andrisk”. He said that the company would con- in its poRtfolio whilE this is the financial environment in which improved margins.tinue to be aware of investment opportu- REMAining AwARE of thE abertis has decided to continue to grow, He also pointed out that, in 2010,nities arising in the market. Specifically, he now that it is fully focussed on the Toll Roads, abertis invested a total of 757 millionmentioned toll road privatisations in the nEED to ADD yEARs to Telecommunications and Airports businesses. euros –193 million of which were spentUnited States and other countries; the busi- thE Existing ConCEssions Its aim is to increase the presence of inter- on operating investment and 564 millionness that the second digital dividend may AMongst its AssEts national businesses in its portfolio while on investment in expansion, although10 n Link abertis n DECEMBER 2011 DECEMBER 2011 n Link abertis n 11
  7. 7. INTERVIEWChief executive officer of abertisFrancisco Reynés«abertis is focused onoverseas growth and onimproving its efficiency»The chief executive officer of abertis emphasised that the Groupis committed to toll road projects on the American continentTexT abertis | PHoTos David Campos In this interview, the chief executive parks and logistics parks businesses. It was a Profile officer of abertis reviews the Company’s question of ensuring the necessary conditions Born in Palma de Mallorca incurrent status,after a year of profound and ongo- for each of the businesses to have access to 1963, he holds an industrialing changes in the Group. These changes have resources in a context in which every growth engineering degree and hasalready resulted in a new abertis which is more project demands a higher level of capitalisation an MBA from the Iesefocused on its three current businesses and looks and can take on less debt.We understand that Business school. He has beentowards international markets. concentrating the businesses into two compa- the chief executive officern n n nies that are managed independently gives each since mid 2010. Previously,In recent weeks, the process of restructur- one a focus and specialisation in its priority areas. from May 2009 up to Juneing the abertis businesses, which began These areas are toll-roads, telecommunica- 2010, he was the corporatein February, has reached completion. What tions and airports in the case of abertis, and car managing director of abertis.has been the Group’s objective in under- parks and logistics parks in the case of Saba Before joining the Group,taking this restructuring? Infraestructuras.This means that the new struc- he was the Ceo of CriteriaThe main objective has been to ensure growth. ture gives them both better futures and greater CaixaCorp. He has alsoAfter three years of financial and economic potential growth, since there will be a closer worked as managingcrisis, in which we have consolidated the stage correlation between the projects to be developed director and memberof vigorous expansion we experienced between and the resources available. of the Board of Directors2004 and 2008, we need to prepare ourselves n n n of Gas Natural, and was the Ceo of Uniland.for a new phase. The world has changed, and When you talk about continuing to grow,this change is not temporary. Incorporating what will abertis’ priorities be now? Francisco Reynés is alsoassets that will increase our concessions’average The first thing I would like to emphasise when on the boards of sanef,lifetime is a strategic imperative if we are to talking about growth is that we are not going eutelsat and Hispasat.create value in the medium and long term.We for growth at any price. We will grow whenmust also accentuate the Group’s global orien- the returns are in line with those we havetation. And, of course, we cannot grow just at set for ourselves as a company. And whileany price, but rather through those projects that growing we will be preserving the structure ofoffer adequate profitability. our balance sheet. This means that, while we This is the objective we set ourselves when continue to grow, we will be keeping a closewe suggested the project of spinning off the car watch on our rating, which is currently one12 n LINK abertis n DECEMBER 2011
  8. 8. of the best in our sector. It’s also important to emphasise that, at this time, abertis will not consider growing outside the three types of business in which we have a presence. In this respect, we do not foresee diversifying into other sectors. With respect to geographical priorities, we believe that it is the right time to continue to diversify overseas, with a special focus on toll road projects on the American continent. In this respect, we have recently announced a remodelling of our executive team. An important aspect of this process has been the appointment of David Díaz as managing director of American Toll Roads (Autopistas America), to which our toll road businesses in Chile, Argentina, Puerto Rico will report, as will the office the Group has established in Washington to study projects in the United States. I believe that the Unites States is cur- rently a priority for abertis in terms of growth projects, although, as always, we will study the opportunities that arise in other markets and may be of interest to the company. I would also like to point out that, as far as is possible, we will undertake growth projects with local partners who provide a knowledge of the territory and financial part- ners which will share the burden of financing the operations. In any case, abertis’ role will always be that of the industrial, management- orientated partner, in all the projects we WE DO nOt fOREsEE undertake. DivERsifying fuRthER n n n company is working. What are your objec- WE aRE COnsiDERing I believe that the prospects are good intO OthER sECtORs” Is there any foreseeable change in the tives in this respect? DivEsting OuRsElvEs Of as a whole, although we will have to watch Group’s current business portfolio? Indeed, one of the aspects on which the closely as events unfold in the macro- CERtain shaREhOlDings, it is thE Right tiME We are at a time when we are restructuring management team is focusing its attention economic scenario. The situation in Europe as a Way Of finanCing tO COntinuE tO gROW our assets portfolio, in order to reduce the and efforts even more intensely in 2011, if is very complex, and all available informa- complexity of managing it and to reinforce that were possible, is containing both operat- nEW OppORtunitiEs anD tion makes one think that this will con- OvERsEas, EspECially our industrial role in those projects in which ing expenses and operating investments in REDuCing inDEBtEDnEss” tinue in the coming months. All these thROugh tOll ROaD we have partners. In this respect, we have all the sectors and countries we operate in. components may affect the scenarios for pROjECts in thE great interest in financially consolidating the This is a factor of fundamental importance in OuR CRitERiOn in coming out of the crisis, and therefore aMERiCas” shareholdings we have in certain projects, the current uncertain situation, in which –in REORganising thE the forecasts with which we have been and also in becoming more deeply involved addition– the cost of debt is increasing. To working, especially the trends for traffic ManagEMEnt stRuCtuRE in the projects which have long-term value this end, we are reorganising the company’s on toll road networks. We are working to and synergies within the group. management structure based on the criteria is iMpROvED OpERating maintain our businesses’ strong cash flow Additionally –as was the case with Atlan- of a substantial improvement in the efficiency EffiCiEnCy” generation. In terms of the organic busi- tia at the start of 2011, we are considering of our operations and adapting this manage- ness, and excepting the unknowns already possibly divesting ourselves of certain share- ment structure to the new challenges. To mentioned, we can foresee that traffic holdings, as a way of financing the new oppor- summarise, there is a commitment from the may continue to stabilise in Spain, while tunities for expansion that will present them- company’s management team to sustainably we expect growth in France and America. selves to the group, and as a way of reducing generate growing shareholder value in the Passenger traffic through airports has also our level of indebtedness.We will, in any case, long term. In this respect, a key role will be turned the corner towards growth this always be demanding when it comes to played by maintaining an attractive dividend year. We are also optimistic about abertis expected returns and selective when it comes policy while, by our decisions, transparency telecom after completing the DTT rollout to the assets we invest in. and proactiveness with the market, looking in 2010. To all this we can add our focus on n n n after the value of our shares. controlling costs and capex as a factor in In recent months you have, on several n n n improving our margins, which do depend occasions, pointed to efficiency as one of What are your expectations for the close fundamentally on us, rather than on exter- the determining factors on which the of the 2011 financial year? nal circumstances. n14 n LINK abertis n DECEMBER 2011 DECEMBER 2011 n LINK abertis n 15
  9. 9. report 2 1 3abertis The consortium led by abertis and ners, with the remaining 60% financed with —1— With Metropistas, abertisabertis and Goldman Sachs the Goldman Sachs Infrastructure long-term debt to a group of 12 financial has strengthened its presence in Puerto Rico, Partners II investment fund have closed a entities. The consortium will manage both which is a beachhead contract with the Government of Puerto toll roads through a jointly-owned company and gateway into the United States.take on the management of Rico which concludes the process of award- called Autopistas Metropolitanas de Puerto —2— ing the management concession for the Rico LLC (Metropistas). The PR-22 toll road, which is PR-22 and PR-5 toll roads. The consortium, also known as the José San which has taken on the management of the The José de Diego Expressway Diego expressway serves 84,000 vehicles daily.two toll roads in Puerto Rico toll roads for a 40-year period, has paid a The PR-22 toll road, also known as the José —3— concession fee of US$1,136Mn (€830Mn). de Diego Expressway, is the busiest in Puerto San Juan de Puerto Rico is The operation has been completed by Rico, with 84,000 vehicles a day, accord- the capital city, and is home to a large proportion of the a consortium made up of abertis (45%) ing to data for 2010. The PR-22 runs for country’s population. and the Goldman Sachs Infrastructure Part- 83 kilometres along the north of Puerto The Teodoro MoscosoHaving closed the deal, the consortium is starting to manage, through the Metropistas concession ners II investment fund (55%). Approxi- Rico, connecting San Juan, the capital, with Bridge and the PR-22 and PR-5 toll roads allcompany, the PR-22 and PR-5 toll roads. The concession has been awarded for 40 years mately 40% of the deal has been funded the city of Arecibo. The toll road has seven contribute to revitalisingTExT anD PHoToS abertis through capital contributions by the part- toll stations, including the Buchanan plaza, the region’s economy.16 n link abertis n DECEMBER 2011 DECEMBER 2011 n link abertis n 17
  10. 10. Teodoro Moscoso Bridge have all con- tributed to positioning the Group as a world leader in transport infrastructure management and a preferred partner for developing Puerto Rico’s Public-Private Partnership (P3) programme, and also for future public-private projects in the rest of the USA. Managing the PR-22 and PR-5 toll roads will provide a reference to other parts of the US and act as a gateway to the rest of the North American market. about Goldman Sachs Goldman Sachs is a leading global invest- ment banking, securities and investment management firm. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial cen- tres around the world. Goldman Sachs is one of the largest infrastructure fund managers globally, having raised total capital of over US$10,000Mn (€14,173Mn) since the busi- ness was set up in 2006. GS Infrastructure Partners is its first fund dedicated to making direct investments in infrastructure compa- 2 1 nies and assets. The fund is principally focussed on investment opportunitiesthrough which over 25 million vehicles pass —1— in transport and public services. GS Infra- The Teodoro Moscosoannually. It serves an area which is home Bridge joins the San Juan Managing thEsE two toll structure Partners has holdings in a wide aBERtis’ pREsEnCE in puERto RiCoto numerous multinational industrial and metropolitan centre to the city’s international RoaDs pRoviDEs a gatEway range of transport assets worldwide, ContRiButEs to positioning thE gRoup aspharmaceutical companies. including Associated British Ports, Carrix, airport. into thE REst of thE noRth a lEaDing tRanspoRt infRastRuCtuRE —2— Eurotunnel, Red de Carreteras de OccidenteThe PR-5 toll road The PR-22 and PR-5 toll aMERiCan MaRkEt and Sintonia. n ManagEMEnt CoMpany woRlDwiDEThe PR-5, which opened in 2006, is a four- roads run along the north of Puerto Rico.kilometre extension of the PR-22 which runsthrough Bayamón in the San Juan metro-politan area. It also links to the PR-6 andPR-2 highways and ends at its intersectionwith the PR-199. In 2010, operating revenue fromthe PR-22 and PR-5 tolls roads totalledUS$90Mn (€62Mn). San Juan arecibo Dorado BarcelonetaConsolidation in Puerto Rico and Vega Bajagateway to the United States CatañoThe operation consolidates abertis’ pres- Manatíence as a toll road operator in Puerto Vega altaRico, where for 16 years it has managedthe Teodoro Moscoso Bridge in the SanJuan metropolitan area. Since it was Bayamónopened, the bridge has had over 128 mil- Guaynabolion users and generated nearly US$19min 2010, an increase of 8% on the previ-ous year. The fact that abertis has had a the pR-22 toll road the pR-5 toll roadpresence in Puerto Rico over severalyears, its commitment to the community Link the teodoro Moscoso Bridge the airportand the quality of service provided by the n link abertis n DECEMBER 2011 DECEMBER 2011 n link abertis n 19
  11. 11. COMPANYAirportsThe future ofairport managementThe abertis-Fedea Chair and the RACC Foundation organised the firstInternational Seminar on private airport management, which was heldin Madrid on 24 May and 15 JuneTexT Gemma Gazulla | PHoTos abertis The debate on airport management Professors David Starkie (United King- but it has resulted in European airports being is highly topical. On the one hand, dom) and Hans Martin Niemeier (Germany), more profit-orientated. Niemeier said thatthe European Union is deeply involved in and the Head of Economic Regulation at Europe needs to develop a coherent regula-the process of creating a true single market the British CAA (Civil Aviation Authority), tion, privatisation and competition policy,for air transport with a view to increasing Ken Cheong, analysed how the different with just and democratic institutions andthe sector’s efficiency. On the other, Spain processes had been carried out in each of planning to end the over 20 years of their countries. To end the first session, representativesAENA, a public body, managing the airports. of leading airport management companiesHow has this privatisation process been Increased competition gave their points of view. Bob Bullock, aber-approached on the European continent? David Starkie emphasised the importance tis airports Director of Business Develop-What model is best for Spain? of free competition. Although the sector ment, explained the situation of abertis in With the aim of answering these ques- was previously dominated by companies the United Kingdom, while John Bruen, Committee which classifies Spanish airports From left to right: Manuel López, president of ACeTA; Ferrantions, and to analyse the challenges that with strong monopolies, things have Director of Corporate Development at Fer- on the basis of their traffic, operating results, The Open SkieS TreaTy, soriano, president of spanair;Spain will have to confront with respect changed in the last 25 years. The Open Skies rovial Aeropuertos described his company’s principal routes and distance between dif- lOw cOST airlineS and Josep Piqué, president ofto airport matters in the near future, the Treaty, the birth of low cost airlines and the point of view. ferent facilities. Of the report’s conclusions, Vueling; and Miquel Nadal,abertis-Fedea Chair and the RACC Founda- increase in internet business have involved one which stands out is that the link The increaSe in inTerneT Director of the RACC Foundation.tion organised the first International Sem- increasing competition that requires regu- should airports be managed between transport infrastructures is weak- buSineSS have invOlvedinar on private airport management. The lations that are less complex and more individually or together? ening; it is therefore imperative to evaluate increaSing cOmpeTiTiOnevent was attended by many of the players generalist. The second day –the 15th of June– opened investment projects ex ante, i.e. before ThaT requireS regulaTiOnSinvolved and by leading Spanish and inter- On the rest of the continent, privatisa- with a paper by Javier Gómez Navarro, implementation.national experts. tion, for the most part, has been partial. former Trade and Tourism Minister and ThaT are leSS cOmplex and According to Niemeier, privatisation has former President of the Higher Council of Business presence mOre generaliST, accOrdingPrivatisation in other countries not changed the nature of the industry Chambers of Commerce. A discussion From the business point of view, the follow- TO david STarkieThe first session, on 24 May had a clearly –as was the case in the United Kingdom– then took place between the country’s lead- ing representatives of leading Spanish air-international nature, and focussed on ana- ing experts, who offered differing points of lines were present: Manuel López, presidentlysing the privatisation experiences of coun- view on the challenges of AENA’s privatisa- of the Association of Spanish Air Transport opinions to be listened to before charges whom Spanish airports must not only com-tries around us, such as the United Kingdom tion process. Companies (ACETA); Josep Piqué, president are fixed. He also insisted on greater trans- pete with each other but also with otherand Germany. The new SpaniSh airpOrT For Germà Bel, of Barcelona University, of Vueling; and Ferran Soriano, president of port intermodality, as laid down in the airports worldwide. Isaías Táboas, the Secretary of State for mOdel, wiTh mOre the important question isn’t whether private Spanair.They all demanded greater transpar- Transport White Paper, as already imple- The president of the new Aena Aerop-Transport, opened the seminar with a pres- or public management is better, but rather ency in airport management and a more mented in cities such as Paris, Frankfurt, uertos Company gave the closing address.entation entitled The Reform Strategy for flexible and auTOnOmOuS whether a country’s airports should be man- significant role for the airlines in AENA’s Brussels and Zurich. Juan Ignacio Lema defended the currentSpanish Airports offered the Government’s managemenT, will allOw aged together –as in Estonia, Finland and current consultation process. Josep Piqué, president of Vueling, privatisation process as necessary in orderview of how AENA should be privately man- airpOrTS TO becOme mOre Portugal– or individually –as in most west- Manuel López emphasized the need for applauded the progress being made in to adapt to today’s reality, which demandsaged. The Secretary of State reminded those cOmpeTiTive in an ern European countries. airlines to ensure that they are profitable. AENA’s privatisation process, but said that lower costs and greater flexibility. Accordingpresent how sound and efficient AENA Ofelia Betancor, the researcher in He called for: an efficient new model; trans- it was insufficient, that AENA should move to Lema, the new model, with more flexibleand Spanish Airports are, and defended the increaSingly demanding charge of the Transport Department in the parency with respect to each airport’s man- towards decentralised management. This and autonomous management, will allowreform of the current model and the liber- envirOnmenT, accOrding abertis-Fedea Research Chair, presented the agement, charges and costs; continuous management model was also defended by airports to become more competitive in analisation of the telecommunications sector. TO Juan ignaciO lema Report by FEDEA’s Air Transport Monitoring quality improvement; and for the airlines’ the president of Spanair, Ferran Soriano, for increasingly demanding environment. n20 n LINk abertis n december 2011 december 2011 n LINk abertis n 21