RIYADH: Crown Prince Sultan, deputy prime minister and minister of defense and aviation, signed here yesterday three contracts valued at SR579 million with two major companies to operate and develop the Kingdom’s three international airports.
The two companies are: Fraport AG of Germany and Singapore’s Changi Airports International, Pte Ltd.
“Fraport will operate the Jeddah-based King Abdul Aziz International Airport (KAIA) and the Riyadh-based King Khalid International Airport while the Dhahran-based King Fahd Airport (KFA) will be operated by Changi,” said Abdullah M. Al-Ruhaimy, president of the General Authority of Civil Aviation (GACA), while speaking on the sidelines of the signing ceremony. Al-Ruhaimy said that the contract was for six years during which the companies will invest their technical know-how to develop the existing facilities and qualities of services.
Matthias Zieschang, member of the Fraport AG executive board, signed the Fraport deals worth SR216 million for the Jeddah airport and SR201 million for the airport in Riyadh. Lim Chin Beng, chairman of Changi Ltd, inked the SR216-million deal for the Dammam airport.
Al-Ruhaimy said that the Fraport and the Changi management teams would be responsible for daily operations and for leading a wide range of projects during the six-year contract period.
In particular, the focus will be on developing the three international airports and improving services, as well as on maximizing sustainable traffic growth, he added.
“GACA’s policy is to move toward the most liberal aviation position with countries around the world, compatible with our national interest and this means that we will face increasing challenges from competing airlines and airports,” he said.
“Bringing Fraport and Changi to support our international airports is a key element of this strategy,” he added.
The GACA chief called on the government agencies and the foreign partner companies operating in aviation sector to work hard to make the Kingdom a world leader in aviation sector.
“But, being a world leader will not be a walk in the park, there are many people in Saudi Arabia, indeed within GACA, who are comfortable with things as they are,” said Al-Ruhaimy, predicting significant changes at the international airports following the signing of the contracts.
The airport in Jeddah, which occupies an area of 105 square kilometers, will be able to accommodate a total of 80 million passengers per year, up from 15 million passengers now, once the new expansion project is completed. The expansion project, estimated to cost SR18 billion, will enable the Jeddah airport to receive large jumbo jets, including the A380s.
The expansion of the Jeddah airport involves the construction of two new terminals and renovation of the existing south terminal and a new concourse with 25 gates.