ACSA

ACSA

ACSA

All Systems Go

For ACSA’s Cape Town Runway Expansion PRODUCTION: David Napier

Running nine airports in South Africa and providing services to other airports around the world, dealing with almost 20 million departures each year from South African airports alone, and ensuring that service quality remains delivered at the highest level, ACSA has a difficult job but it continues to impress, winning awards and displaying continued financial strength.

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Africa is becoming a smaller place thanks to technology development. The way in which people and goods move around the continent is quickly becoming more efficient and more effective.

Covering more than 30 million km2 and more than 20% of the earth’s total land area, Africa’s 1.2 billion people still struggle to move from top to bottom (the distance from Cairo to Cape Town is more than 10,000 km).

But a new initiative from the African Union is hoping to improve transport in Africa by opening up opportunities in the African sky.

Launched in February, the Single African Air Transport Market (SAATM) is part of the AU’s Agenda 2063 which seeks to accelerate socio-economic transformation on the continent over the next 50 years. The SAATM aims to

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connect Africa through air transport and other transport infrastructure to achieve economic integration and boost intra-African trade. Of 54 African member states, 23 have subscribed to SAATM and four have begun the process of joining the initiative.

While there has been opposition to SAATM propositions (including claims that it will only benefit wealthy countries and big airlines), AU members are keen to point out that the entire air transport environment stands to benefit; there will be increased passenger movement, airports will see more traffic, air navigation services will improve, and every entity that works in the airport environment will benefit.

In January, AU Commissioner for Infrastructure and Energy, Amani Abou-Zeid, said that SAATM could create 300,000 African jobs.

“With preparations continuing on schedule, the launch of the Single African Air Transport Market will spur more opportunities to promote trade, crossborder investments in the production and service industries, including tourism resulting in the creation of an additional 300,000 direct and two million indirect jobs contributing immensely to the integration and socio-economic growth of the continent.”

“SAATM was created with the aim of enhancing connectivity and ensuring that the industry plays a more prominent role in the global economy and significantly contributing to the AU’s Agenda 2063,” he added.

As one of Africa’s largest economies, a major logistics hub, and home to a big-name airline, South Africa stands to benefit from SAATM. The country’s airports are not only some of the best

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INDUSTRY FOCUS: TRANSPORT

in Africa but some of the best globally.

Run by Airports Company South Africa (ACSA), South Africa’s nine key airport facilities are at the heart of African trade, industry and transportation.

The state-owned, but legally and financially independent, business is responsible for the effective operation of Cape Town International, O.R. Tambo International, King Shaka International, Port Elizabeth International, Bram Fischer International, Upington International, East London, George and Kimberley airports.

Just prior to the launch of SAATM, ACSA announced that it has received approval from the DEA for the construction of a new realigned runway at Cape Town International.

TAKEOFF FOR CPT RUNWAY The purpose of the project is to realign the primary runway and construct parallel and rapid exit taxiways. The new realigned runway will reach 3500 m in length and will be built to international standards. This is to improve access for larger aircraft with a wingspan of 65m or more, such as the Airbus A-380.

Construction is expected to begin in 2019, subject to all approvals and processes being completed timeously.

ACSA says that the project will result in a big boost for the local economy thanks to increased potential for the

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welcome of tourists, but also thanks to the initial R3.8 billion that will be felt by those in the Western Cape.

“This project is about growth, not only for the airport and the network of Airports Company South Africa airports, but also for the region as a whole. Cape Town has every reason to celebrate,” said Deidre Davids from Cape Town International.

But some groups have opposed the project, citing Cape Town’s ongoing water crisis as a reason to hold off.

Davids is clear that the environment remains a top priority for ACSA and every precaution will be taken to ensure a responsible project.

“The team has worked long and hard to get us to this point. We have gone out of our way to engage interested and affected parties and today we celebrate. We remain committed to being a responsible developer upholding all environmental and other requirements. Part of being a responsible developer is to be most mindful of the current water situation when we construct,” she said.

One of ACSA’s two key income streams comes from aeronautical charges or tariffs (aircraft landing and parking charges, and passenger service charges) and this new runway will enable the business to further drive revenue growth.

// OUR EMPLOYEES ARE A KEY ENABLER FOR CREATING SUSTAINABLE VALUE AND DELIVERING ON OUR STRATEGIC OBJECTIVES // TOP EMPLOYER ACSA’s second revenue stream comes from non-aeronautical income and is generated from commercial undertakings through retail operations, car parking, car rental concessions, advertising, property leases and hotel operations.

While many of these activities are outsourced to specialist partners, the process of ensuing revenue is sustainable falls to ACSA’s more than 2800 employees.

And thankfully, these employees are now members of a business which can officially position itself among the continent’s best employers.

Following its formation in 1993, ACSA moved forward as a self-confessed ‘fractured, infrastructural parastatal’ before streamlining and becoming recognised as an international industry leader that is focused, customer driven, efficient and commercially successful.

This is thanks to the organisation’s people. ACSA is now making every effort to create a positive working environment for its people, and this has been recognised.

“Our comprehensive independent research revealed that Airports Company South Africa SOC Ltd provides exceptional employee conditions, nurtures and develops talent throughout all levels of the organisation and has demonstrated its leadership status in the HR environment, always striving to optimise its employment practices and to develop its employees,” said the Netherlands-based Top Employers Institute.

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INDUSTRY FOCUS: TRANSPORT

This certification includes the company among just a handful of South Africa’s big-name businesses which can call themselves worldclass employers. Achieving the status for 2018 marks the fifth consecutive year of recognition for ACSA. “Our employees are a key enabler for creating sustainable value and delivering on our strategic objectives,” the company states.

AWARD WINNING In December, good news was shared regarding O.R. Tambo International Airport, which was recognised among the top 25 airports in the world (1525 million passengers) according to Airports Council International.

The ACI delivers the Airport Service Quality (ASQ) survey where reviews are submitted by independent passengers.

Officially placed at number 24 on the list, O.R. Tambo International senior management thanked staff and stakeholders for their efforts.

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“This improvement is most pleasing and is a significant achievement over a relatively short time,” said General Manager, Bongiwe Pityi.

“In any airport, only a small fraction of the people working there are actually employed by the airport company. This means that the passenger experience depends very much on all of us being aligned and striving to put the traveller first in everything we do.

“This is why we are so appreciative of the efforts of the entire airport community over the past quarter,” she added.

The ASQ score is made up of a combination of factors combining functionality of infrastructure, ambience, cleanliness, retail mix, food and beverage facilities, way-finding and user-friendliness, and Wi-Fi access.

Pityi said the improvement in service delivery at O.R. Tambo was down to all stakeholders focusing on the long-term vision of ACSA. “No organisation can run

successfully without collaboration from strategic partners. As an airport operator, it is therefore vital for us to affirm each stakeholder and recognise how they are an integral part of achieving and maintaining service excellence at Africa’s biggest and busiest airport,” said Pityi.

This success came after ACSA airports had been recognised for excellence back in October. At an awards ceremony in Mauritius, King Shaka International was named Best Airport by Region; Cape Town International was named third Best Airport by Region and was also named as Africa’s safest airport; and Bram Fischer and Upington were also recognised for quality.

“It is heartening to see our airports once again featuring prominently in the ACI ASQ Awards, which recognise airports that are satisfying their customer’s needs,” said Bongani Maseko, ACSA CEO. “We continuously strive to improve our customer service by ensuring

ACSA

// WE CONTINUOUSLY STRIVE TO IMPROVE OUR CUSTOMER SERVICE BY ENSURING OUR AIRPORTS MEET PASSENGERS’ NEEDS UNRESERVEDLY // our airports meet passengers’ needs unreservedly. We are honoured to be recognised by ACI in this way.

“Airports Company South Africa sees these awards as an opportunity to continue to plan improvements and benchmark our levels of customer service against other airports. The data obtained through the ASQ survey provides us with valuable insights that enable us to identify what our passengers value most and what the respective airport communities need to do to achieve passenger service excellence,” added Maseko.

FINANCIAL STRENGTH In September, ACSA announced big profits and declared the 2016/17 financial year the best in its history – a win that it will hope to drive forward through 2018.

“This is probably the best set of results we’ve presented in the history of the company,” detailed Maseko.

“It’s been a stellar performance, with very good financial results,” said CFO Dirk Kunz.

He put the company’s growth down to international traffic increases.

Overall, revenues came to R8.6 billion (R8.3 billion in 2015/16); EBITDA was R5.1 billion (R5.2 billion in the previous financial year). Departing domestic passenger volumes increased by 2.1%, international aircraft arrivals increased by 2.7% and regional departing passengers increased by 4.5%.

Provision of advisory services to other non-ACSA airports also helped in ACSA’s performance. And its international contracts continued to perform well with activities in Brazil,

India and Ghana proving successful.

Going forward, capital expenditure projects including the new runway and arrivals building design at Cape Town, new parking aprons at Johannesburg, and a potential expansion at Durban (depending on continued growth) will help ACSA to achieve its longterm vision of becoming ‘the most sought-after partner in the world for the provision of sustainable airport management solutions by 2025’.

In South Africa, ACSA remains a perfect example of a well-run South African state enterprise, and continues to provide quality service for its almost 20 million yearly departing passengers. With SAATM set to boost traffic, now is an exciting time for ACSA and a great time to be involved in African air travel.

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