New plans for OR Tambo

OR TAMBO International Airport management is close to concluding a partnership deal with development companies to expand the facility.

The airport's newly appointed general manager, Tebogo Mekgoe, said the partnership will focus on the commercial development of land previously owned by arms manufacturing company Denel.

Mekgoe said the airport's investment in the area will be minimal. Developers will build with their own money and operate for a number of years and the airport will earn rental income from them as the land will be leased.

The airport management is also conceptualizing a new passenger terminal to be built in the future.

Mekgoe, who has been at the airport's helm for three months following Chris Hlekani's departure to the SA Post Office, has asked Airports Company of South Africa (Acsa) for R300m for capital expenditure for this year.

He said the money will be used for the maintenance and refurbishing of OR Tambo International Airport.

The airport generates an estimated R4bn in revenue annually for Acsa, of which 42% comes from commercial operations.

Mekgoe said the airport management wants to unlock the commercial value of the non-aviation land and to improve the access of passengers to the airport. The airport is currently using only 60% of its capacity.

The airport is still battling to reach 19million passengers, a number last seen in 2007, before the financial crisis crippled the aviation industry.

Passenger numbers last year reached 18million and Mekgoe expects them to be remain flat this year.

That view is supported by flight schedules submitted by airlines this year.

Mekgoe, who has been with Acsa for almost 13 years, said this non-growth is due to the current economic pressures.

The Acsa-owned airport is working with South African Airways and the South African National Roads Agency on new access routes into the airport in addition to its efforts to unlock commercial value.

Mekgoe would not be drawn into discussing the estimated value of the project as he has not taken it to the market yet.

* This article was first published in Sunday Times: Business Times