Changi Airports International has made its first airport investment in China. The deal involves a significant stake in the Nanjing Lukou International Airport. The deal marks a milestone in cooperation between the…
Changi Airports International has made its first airport investment in China. The deal involves a significant stake in the Nanjing Lukou International Airport. The deal marks a milestone in cooperation between the aviation sectors of both sides as well as a breakthrough in ties between the Jiangsu Government and Singapore.
Through this strategic alliance, Changi Airport will be investing RMB 1.08 billion dollars, or USD 138 million for a 29% stake in NLIA. The agreement also involves a long-term collaboration with Nanjing Airport to introduce airport management best practices to develop it into a model airport in China.
Singapore and China have always enjoyed close ties in the aviation sector. Relations strengthened in 2003, when for the first time in Chinese history, the General Administration of Civil Aviation of China (CAAC) granted its fifth freedom rights to an international airline (Singapore Airlines Cargo) to ply on the lucrative Singapore-Nanjing/Xiamen-US route. Nanjing Airport was a major beneficiary of this enhanced cooperation, with both its passenger and cargo throughput enjoying double digit growth annually for the past few years. Nanjing Airport is ranked top 5 by international cargo volume in China.
This multi-million dollar investment also marks a new height in collaboration between the Jiangsu Government and Singapore after China-Singapore`s Suzhou Industrial Park, which celebrated its 12 th year anniversary in 2006.
The Investment Agreement was signed by the airport`s shareholders representing the Jiangsu Government, and Mr Chow Kok Fong, Chief Executive Officer of Changi Airports International.
On the deal, Mr Chow said We consider this investment to be a milestone in the aviation industry because it represents the first private-equity investment deal in a Chinese airport by another foreign airport. It behooves both Nanjing and Changi, therefore, to ensure that this will not only be a commercially successful project but that it will truly benefit the economy of Nanjing city. We feel that with the strong economic fundamentals underpinning the growth of this airport, there will be tremendous opportunities for attracting supporting industries and high skilled jobs to the vicinity. The approach we have taken in this joint venture is to enable our co-operation to be readily expandable to take advantage of these opportunities as and when they arise.
According to Mr Chong Lit Cheong, Chief Executive Officer, International Enterprise Singapore, IE Singapore is glad to have played a role in the collaboration between NLIA and CAI and would like to extend our congratulations to them on this successful partnership. With Singapore`s expertise and experience, I am confident that we can contribute significantly in the development of NLIA. It is indeed an exciting time for the aviation sector in China, given their many plans to upgrade and expand their airport facilities and infrastructure. We see good potential and will continue to expend our efforts and resources to help more Singapore companies secure airport projects in China.
The signing ceremony was witnessed by Jiangsu Province Governor Liang Bao Hua and Singapore Minister of Health Mr. Khaw Boon Wan.
All parties hope that Changi Airport`s investment in Nanjing Airport will extend beyond the immediate business of the airport, to an overall drive towards the all-round development of Jiangsu`s aviation industry.
The Nanjing Airport contract is the third major airport project secured by Changi Airports International over the past six months. In August 2006, Changi signed an agreement to manage the New Terminal 1 of Sheremetyevo Airport in Moscow under a Joint Venture with the Sheremetyevo Airport Joint Stock Company.
This was followed by the Operations Management Agreement it executed in Dec 2006 to manage the existing Abu Dhabi International Airport together with a contract to review the master plan for the new Midfield Terminal of the airport. The Midfield Terminal is a very large terminal building, designed for a capacity equivalent to the combined capacities of Terminals 1 and 2 of Changi Airport. In addition, Changi Airports International has also secured several consultancy contracts for various airports in China while the company was in the course of negotiating the Nanjing Airport contract.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
