Airports Sector in China

An Expert's View about Air Transport in China

Last updated: 14 Mar 2011

Since 1990s?China Airport construction has been maintaining a rapid growth. There are 70 airports newly built or removed. Over 80 airports are upgraded or expanded.

Sector briefing Airport Opportunities in China Yichun (Heilongjiang Province?????), Jixi Why China? (Heilongjiang Province?????), Tengchong (Yunnan Province????), Foshan Since 1990s?China Airport construction has (Guangdong Province????), Yushu (Qinghai been maintaining a rapid growth. There are 70 Province????). The total areas for new airports newly built or removed. Over 80 terminals are 600,000sqm. airports are upgraded or expanded. In addition, there are 71 airports with general As part of the comprehensive transport system aviation certificate, and 319 airports could in China, civil aviation turnover of passenger accommodate temporary take-off/landing for traffic accounted for 13.5% (1.6% in 1978). general aviation. In 2009, the airports in China provided services There are 14 airports with annual passenger for over 120 airlines, with 486.06 million throughput of over 10 million person-times, passenger/times (increased by 19.79% over 4 more than 2008. 2008), 9.456million tons of cargo and mail (increased by 7.04%), and 4.841 million In 2009, Beijing Capital International Airport (increased by 14.52%) for aircraft take-off and (BCIA) accommodated 65.37 million landing. passengers (person- times), ranking No.3 in rd the world. Shanghai Pudong Airport is in 3 By the end of 2009, there were 166 place, for cargo throughput of 2.54 million tons. commercial (certificated) airports in mainland China (exclusive Hong Kong and Macao), 165 It is expected that 8 more new airports will be provide regular flights connecting 163 cities. added to the total number in 2010. The 33 of these airports can accommodate B747 aircraft. Targets for 2010 include 49.3 bn ton-km for transportation turnover, 260 million for The 6 newly added ones in 2009 include passenger traffic volume, 4.98 million tons for Daqing (Heilongjiang Province?????), UK Trade & Investment Sector briefing: Airport opportunities in China 1 cargo & post volume, increasing by 15.5%, ?Since 1990s?China Airport 13% and 12% respectively over 2009, with construction has been maintaining total investment on fixed assets of RMB 90 bn rapid growth. There are 70 airports yuan. newly built or removed. Over 80 According to ?China Civil Airport Layout Plan?, airports are upgraded or expanded. there will be over 70 new airports to be built in the next 10 years. Total numbers for airports Total numbers for airports in China will in China, by 2015, will be 220 and 270 by be 220, by 2015 and 270, by 2020, 2020 (including 2 more global/international air and 300 by 2030.? hubs) and 300 for 2030 (including 3 more global/international air hubs). General information on Chinese market conditions can be found on UKTI?s website. The Doing Business Guide for China gives an overview of China?s economy, business culture, potential opportunities and an introduction to other UK Trade & Investment Sector briefing: Airport opportunities in China 2 for the 11th Five Year Plan, some projects for Opportunities 12th Five Year Plan will commence ahead of schedule. Despite the Opening Up of the Chinese Economy, China is still in a transitional period There will be 25 key projects in 2010, from a state planning economy to a market including: economy. The Chinese government still plays a ? Projects to be completed in the year key role in the Chinese airport sector, and so (????): the UK government, and UKTI in particular, has a crucial role to play in fostering closer links ¾ Shanghai Hongqiao Airport expansion between the airport sectors of both countries (????????) and identifying business opportunities and helping them come to fruition. ¾ Ali New Airport construction All projects over USD30 million, whether they (???????) are airports or any kind of infrastructure projects, central approval from the National ¾ Chongqing Jiangbei Airport airfield Development and Reform Commission expansion (???????????) (NDRC) is required. Without NDRC approval, projects cannot go ahead. Although the NDRC ¾ Nanchang Changbei Airport expansion is influential in the process of approval, support (??????????) of the Civil Aviation Administration of China (CAAC) is also crucial. The Planning, ? Projects to be continued in the year Development and Finance Department of the (????): CAAC are responsible for drawing up development programmes, and working on ¾ Kunming New Airport construction annual development plans for air routes. The (???????) Airport Department of the CAAC is responsible for drawing up regulations on airport ¾ Hefei New Airport construction construction, operational safety, and the (???????) examination and approval of proposed newly built airports ¾ Hangzhou Xiaoshan Airport expansion (????????) As a result of the State Council's institutional restructuring in March 2008, to integrate the ¾ Shenzhen Bao?an Airport expansion functions of the former Ministry of (????????) Communications, CAAC was combined with the Ministry of Transport (MOT). ¾ Changsha Huanghua Airport expansion Airports, as the key infrastructure for air (????????) transport and citiesare an important part of the complete transport system. Through dozens of ¾ Chengdu Shuangliu Airport expansion construction and development, China has (????????) shaped a preliminary airport structure. It consists of Beijing, Shanghai, Guangzhou as ¾ Xi?an Xianyang Airport expansion hubs/centres, other capital or major city (????????) airports as core airports (including Chengdu, Kunming, Chongqing, Xi?an, Urumqi, ? Projects to commence in the year Shenzhen, Hangzhou, Wuhan, Shenyang, (?????): Harbin and Dalian), and various main and regional airports. They play an important role ¾ Beijing New Airport construction in the sustainable development of China air (???????) transport and a complete transport system. On 1st July 2009, the "Regulations on the During 2009-2010, China will invest RMB 300 Management of Civil Airport" was implemented. bn yuan or more on airport construction. On It is the only rules/regulations issued by the the base of completion of 140 airport projects State Council in recent years in relation to civil UK Trade & Investment Sector briefing: Airport opportunities in China 3 aviation. For the first time, it is clarified that meantime, they will also put forward the th airport in China are positioned as public utility projects under 12 Five-Year Plan (2011-2015), infrastructure, which is very important for with necessary conditions. The short-term airport construction, operation, management, investment for infrastructure development is restructuring and development in future. estimated to be RMB400 billion or more. According to ?China Civil Airport Layout Plan?, there will be over 70 new airports to be built in Please see hyperlink below for the tablet of the next 10 years. Most of them will be small China civil airports - name, location (region, sized airport, located in middle west, north province), code and website. east and east region, where air transportation http://www.caac.gov.cn/H1/W1/ are less convenient. At the same time, they plan to expand and upgrade those existing Niche areas for UK companies: saturated airports, to improve their capacities and support ability, and to reduce the effects caused by bad weather to the minor limits. ? Master planning & concept design ? System & equipment supply UKTI support for sector ? Project / airport management ? Consultancy ? Training & technical co-operation ? Aviation Working Group (AWG) ? Financing The Aviation Working Group MOU was signed British companies/architects are active in on 8 November 2005 in the presence of the Bo China's airports industry, and, to date have ilai, then Minister of Commerce (MOFCOM) won major contracts in a number of the major and Secretary of State Alan Johnson during the airport projects e. g Beijing new Terminal 3 state visit by President Hu Jintao to the UK. and Kunming new airport as well as airport expansion projects in Xian, Hangzhou and ? Airport Sub Group Yinchuan. They have been successful in design, supplying airport equipment, air traffic Under the umbrella of the AWG an Airport sub control and ticketing systems. group was set up in London in March 2006. Work is being taken forward through annual China unveiled a huge fiscal stimulus package meetings of the Airports Sub-Group, who designed to prevent its economy from meets alternatively in UK and China. This slumping in 2009. As per the announcement, forum has helped to increase the number of the Chinese government would spend UKTI sponsored visits between UK and China in Rmb4,000bn ($586bn) over the next two years this sector and also when UKTI need to lobby on infrastructure including railways, road and municipal governments and ministries, on airport and social programmes. behalf of UK companies. According to CAAC, the added investment will If you have any questions on the opportunities be used on the projects in the western regions above, contact the UKTI China team named in including Kunming (??), Chongqing (??), this report. Business opportunities aimed Nanning (??), and other regional airports specifically at UK companies are added daily to including Hechi (????) and Tengchong (?? UKTI?s website. These leads are sourced by our ??). staff overseas in British Embassies, High Commissions and Consulates, across all sectors To meet the challenge of current financial and in over 100 markets. crises, CAAC released 10 measurements, including an investment of RMB10 billion You can be alerted to China/aviation special civil aviation fund for the construction opportunities on a regular basis by registering of safety facilities. on the UKTI website. More on UKTI?s business opportunities service As for the infrastructure, CAAC will accelerate th those projects listed under the 11 Five-Year Plan (2006-2010), in particular the regional airport projects in middle west and main airport projects in the west region. In the UK Trade & Investment Sector briefing: Airport opportunities in China 4 Table 1: China Mainland Airport Turnover 2009 4 S h e n z h e n / B a o ? a n ? 6 0 5 , 4 6 9 .2 5 9 8 , 0 3 6 .4 1 . 2 (2009????????????) ?/?? 5 Shanghai/Hongqiao 439,071.9 415,726.3 5.6 ??? ??? ???? ??? ???? ??? ??/?? ? (? ?(%) ?(??? ?(%) ?(??? ?(%) 6 Chengdu/Shuangliu 373,515.0 373,067.3 0.1 ???) Increa ?) Increase ?) Cargo Increas ??/?? Total sed by Passenger d by (%) turnover ed by 7 Kunming/Wujiaba? 258,755.3 236,347.7 9.5 turnover (%) turnover (ton-km) (%) ?/??? (ton-km) (person- 8 Hangzhou/Xiaoshan 226,307.9 210,793.0 7.4 km) ??/?? 9 Nanjing/Lukou 200,099.0 187,604.1 6.7 4270729 13.4 33748785 17.1 1262673.6 5.6 th ??/?? Sources: CAAC Presentation, 8 June 2010 10 Xiamen/Gaoqi 196,025.1 195,462.9 0.3 ??/?? Table 2: China Mainland Top 10 Airports for Sources: http://www.caac.gov.cn Passenger Throughput 2009 (2009????????????? 10?) Chart 1: China Mainland Airports 2009 ? Airport Rank Airport 2009 2008 ±% density/numbers for per 100,000 km² ?? ?? (2009????????????? 1 Beijing/Capital 65,375,095 55,938,136 16.9 -?????????????????? ) ??/?? 2 Guangzhou/Baiyun 37,048,712 33,435,472 10.8 ??/?? 6 3 Shanghai/Pudong 31,921,009 28,235,691 13.1 5 ??/?? 4 4 Shanghai/Hongqiao 25,078,548 22,877,404 9.6 ??/?? 3 5 Shenzhen/Bao?an 24,486,406 21,400,509 14.4 2 ??/?? 1 6 Chengdu/Shuangliu 22,637,762 17,246,806 31.3 ??/?? 0 China East Middl North South North North Xinjia 7 Kunming/Wujiaba 18,944,716 15,877,814 19.3 ??/??? 1.6 4.8 2.4 1.6 1.1 0.9 0.8 0.6 8 Xi?an/Xianyang 15,294,948 11,921,919 28.3 th ??/?? Sources: CAAC Presentation, 8 June 2010 9 Hangzhou/Xiaoshan 14,944,716 12,673,198 17.9 ??/?? 10 Chongqing/Jiangbei 14,038,045 11,138,432 26.0 Chart 2: World Airports Density Comparison 2009? ??/?? numbers for per 100,000 km² Sources: http://www.caac.gov.cn (2009????????? -??????????? ) 25 Table 3: China Mainland Top 10 Airports for Cargo & Post Throughput 2009 2 0 (2009????????????? 10?) 15 Ran Airport 2009 2008 (tons) ±% 10 k ?? (tons) 5 ?? 1 Shanghai/Pudong 2,543,393.6 2,603,027.0 -2.3 0 ??/?? USA?? Japan? France Australi India? China? 2 Beijing/Capital 1,475,656.8 1,367,710.3 7.9 6.4 23.3 21.7 2.2 3.6 1.6 ??/?? 3 Guangzhou/Baiyun 955,269.7 685,867.9 39.3 th Sources: CAAC Presentation, 8 June 2010 ??/?? UK Trade & Investment Sector briefing: Airport opportunities in China 5 New New New The webiste link for the map of existing airports projec projec project operating in China : t t Beijing nd http://www.caac.gov.cn/I1/I2/200808/P020080819406619 Ordos Arshan 2 912209.pdf (??? (?? Airport, ?), ?), Baicheng Changb Erenhot (??), aishan( (??? Luliang ???), ?), (??) Mohe Daqing (??), (??), Jixi Yichun (??) (??) Expan Expan Expansi Jining sion sion on (??) Shangh Shangh Nanjing, ai ai Xiamen, Pudong Hongqi Qingdao, , ao, Changzh Nancha ou, Hangzh ng, Jinjiang The webiste link for the map of China Airport ou Wuxi, (??), Planning by 2020: Wenzh Zhousha http://www.caac.gov.cn/I1/I2/200808/P020080819406622 ou, n, 560008.pd Hefei Wuyisha (remov n al) New New projec project t Hui'an Yichun (??), (??) Suzhong (??), Jiuhuash an(?? ?) Expan Expan Expansi sion ? sion ? on ? Guangz Changs Haikou, Table 3: Key Projects by 2010 hou, ha, Guilin, Shenzh Nannin Zhanjian Compl Progre Prepare Prop en g, g, Sanya ete ss (??) ose Zhangji (??) (??) (??) jie, Expan Expan Expansi Liang Shanto sion sion on xiang u(remo Beijing, Tianjin, Shenyan (??) val) Taiyuan Dalian g, New New , Harbin, projec project Huhhot Baotou, t ? Shennon Yanji Hechi gjia(?? (??) ?) UK Trade & Investment Sector briefing: Airport opportunities in China 6 Northern Airport Group (?????) - Beijing, Tianjin, Central-South China-East (?????) (?????) - Guangdong, Guangxi, Hai'nan, He'nan, Hubei, - Shanghai, Jiangsu, Zhejiang, Shandong, Anhui, Jiangxi, Fujian Hu'nan Expan Expan Expansi ??? Major events and activities sion ? sion ? on ? , Jiuzhai Chengd Guiyang Hong China Civil Aviation Development Forum gou(? u, he(? 2010 ??) Chongq ?) Outward Airport Mission to China ing, Time: Oct 2010 Lijiang, Dali, UKTI and ADS/BAG are planning to arrange an Kunmin outward airport trade mission to China g(remo val) Activities proposed: New New New The programme, including cities apart from projec projec project Shanghai and Beijing to be visited in Mainland t ? t ? ? China, is still to be decided. Yingbo( Ali Liupansh ??), (??) ui(??? Contact: Kangdi ), Yading Marcus Archer ng(?? (??) Deputy Head - Airports Sector ), Qianjia UK Trade& Investment ng(?? Bay 825, Kingsgate House ), 66 - 74, Victoria Street Tengch London SW1E 6SW ong(? Tel: +44 (0)207 215 4655 ?) Fax: +44 (0)207 215 4064 Expan Expan Expansi Email: marcus.archer@ukti.gsi.gov.uk sion sion on Yinchua Urumqi Xi'ning, Douglas Barnes n , Xi'an, Lanzhou, First Secretary Kuqa Head of China Transport and Advanced (??) Engineering Team (remov Tel: +86 10 5192 4320 al) Fax: +86 10 5192 4218 New New Email: douglas.barnes@fco.gov.uk projec projec www.ukti.gov.uk t t Kanas( Guyuan Debbie Shi ???) (? Trade & Investment Officer ?),Zho Transport (Railways, Airport, Port) ngwei( Tel: +86 10 5192 4294 ??), Email: Debbie.Shi@fco.gov.uk Yushu( ??), UKTI?s Tradeshow Access Programme (TAP) tianshu provides grant support for eligible Small & i(??), Medium Sized Enterprises (SME's) to attend kumul( trade shows overseas. Find out more about ??) UKTI support for attendance at overseas Sources: www.caac.gov.cn events Whereas every effort has been made to ensure that the information given in this document is accurate, neither UK Trade & Investment nor its parent Departments (the Department for Business, Innovation & Skills, and the Foreign & Commonwealth Office), accept liability for any errors, omissions or misleading statements, and no warranty is given or responsibility accepted as to the standing of any individual, firm, company or other organisation mentioned. Published 2010 by UK Trade & Investment. Crown Copyright © UK Trade & Investment Sector briefing: Airport opportunities in China 7 North--West (?????) South-West - Shaanxi, Gansu, Qinghai, Ningxia, Xijiang (?????) - Chongqing, Sichuan, Yunnan, Guizhou, Tibet UKTI China contacts Next steps - ? Beijing How UKTI can help Douglas Barnes First Secretary British companies wishing to develop their Head of China Transport and Advanced business in the Chinese market are advised to Engineering Team undertake as much market research and Tel: +86 10 5192 4320 planning as possible in the UK. UKTI?s team in Fax: +86 10 5192 4218 China, and its in market partner, the China Email: douglas.barnes@fco.gov.uk Britain Business Council (CBBC), with its wide www.ukti.gov.uk local knowledge and experience, can provide a range of services to British-based companies Debbie Shi wishing to grow their business in the Chinese Trade & Investment Officer market. Transport (Railways, Airport, Port) Tel: +86 10 5192 4294 This can include: Email: Debbie.Shi@fco.gov.uk ? Provision of market information ? Validated lists of agents/distributors ? Shanghai ? Key market players or potential customers in the Chinese market Louise Colwell ? Establishment of interest of such Consul Trade and Investment contacts in working with you Tel: +86 21 32792021 ? Arranging appointments Fax: +86 21 62797388 ? Organise seminars or other events for Email: Louise.Colwell@fco.gov.uk you to meet contacts and promote your company in the Chinese market Roger Yao ? Introduction to relevant government Trade & Investment Officer ministriesi Tel: +86 21 32792032 Em This work is available via our Overseas Market ail: Roger.Yao@fco.gov.uk Introduction Service (OMIS) a chargeable service, which UKTI offers to assists British- ? Chongqing based companies wishing to enter or expand Cecilia Chen their business in overseas markets. Trade & Investment Officer Infrastructure; Transport, Creative Industry To find out more about commissioning this Tel: +86 23 work, or accessing other UKTI services and 6369 1559 Fax : +86 23 6369 1525 specialist advice, please visit the UKTI website Email: Ceci to find contact details for your local UKTI lia.Chen@fco.gov.uk office. ? Guangzhou Jacqui Mullen Consul - Trade & Investment Tel: +86 20 8314 3005 Fax: +86 20 8333 6485 Email: Jacqui.Mullen@fco.gov.uk Tracy Peng Trade & Investment Officer Tel: +86 20 8314 3018 Email: Tracy.Peng@fco.gov.uk UK Trade & Investment Sector briefing: Airport opportunities in China 8
Posted: 29 September 2010, last updated 14 March 2011

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