Closure and redevelopment of NAIA, pushed by SMC

According to conglomerate San Miguel Corp., the Philippines should expect a massive investment of more or less P5.4 trillion for Manila’s Ninoy Aquino International Airport (NAIA) closure and redevelopment.

SMC prepared a document that analysed the heavy cost associated with capacity limitations at NAIA, which was surrounded by dense residential and commercial areas, thus limiting expansion options.

As per report by Inquirer.net, SMC said delays had been costing airlines P1.1 billion yearly, and this would increase to P3.8 billion by 2020 if the situation would not change. For passengers, productivity losses also carry a hefty price tag: P2.8 billion today and P11 billion by 2020.

SMC said NAIA covered about 625 hectares, or two and half times larger than Bonifacio Global City in Taguig. The conglomerate estimated the land value at P325 billion, but it noted the multiplier effect in terms of investments could see this figure balloon to P5.4 trillion.

In line with its proposal, SMC will operate the existing NAIA “within” 12 months before the new airport comes online. SMC also asked the government to “decommission” NAIA 12 months after the new international airport starts operations. It added that the government would still control air traffic of the new air gateway.

The existing NAIA has a pair of intersecting runways while SMC’s new airport would have four parallel runways (pairs of 3.5 kilometers and 2.6 km), with provisions for two more. It said each new runway could handle 60 aircraft takeoff and landing events per hour, versus the current 40 at NAIA. Capacity would also increase to 100 million passengers a year, with the possibility of doubling this to 200 million passengers yearly.

SMC’s airport proposal likewise comes with new road infrastructure links, including an “airport expressway” that would link to North Luzon Expressway and a “shoreline expressway” that would run alongside Manila Bay linking to the Naia Expressway, which SMC also operates.

This would connect the new airport to the southern part of Metro Manila in under 45 minutes, the conglomerate said.

Source:business.inquirer.net