Presentation to the British Irish Airport s EXPO John Heffernan Chief Development Officer, Dublin Airport 1
DUBLIN-LONDON 28.4 No.1 +2,200 MILLION PASSENGERS BUSIEST ROUTE IN EUROPE &No. 2 IN THE WORLD DEPARTING FLIGHTS PER WEEK +9% PASSENGER GROWTH +15,700 JOBS DIRECTLY SUPPORTED BY DUBLIN AIRPORT 41 AIRLINES 14th BEST CONNECTED AIRPORT IN EUROPE OVER 180 DESTINATIONS Source: Dublin Airport rolling 12 months April 2017,
We fly to 15 USA destinations 174 times per week Source: Dublin Airport 2017 3
We fly to Africa 5 times per week Source: Dublin Airport 2017
We fly to Middle East and Asia 36 times per week Source: Dublin Airport 2017
Purpose & Vision Our Purpose To connect Ireland with the World Our Vision We will be airport industry leaders growing our business by delivering great service and value for airlines, passengers and business partners Our Purpose Our Purpose Our Purpose Our Purpose Create an outstanding shopping experience every time Deliver an outstanding airport experience for airlines and passengers Connect the south of Ireland with the world Use our expertise to unlock value for airport investors Our Vision Our Vision Our Vision Our Vision We will deliver the best shopping experiences for our customers and value for our partners We will be the best performing airport in Europe We will compete and grow as the airport of choice in Munster for passengers and airlines We will be the first choice operator on airport transaction 6 6
Three categories of Dublin Airport infrastructure Main capital programme at Dublin and Cork Airports The North Runway Project at Dublin Dublin Airport Central 7
Dublin Airport Capex spend 2015 to 2020 Dublin Airport m 400 daa capital spend Runway 320 Dublin Airport Central 150 Total Other 30 900 8 8
Major projects underway at Dublin Airport 9 9
Airfield and Civils Summary Programme 2017-2019 Start of RFI process 1,100 1,150 270 830 880
Buildings/M&E summary programme 2017-2019 Start of RFI process 1,100 1,150 270 830 880
2017-2019 High level frameworks pipeline Frameworks range Framework renewal 2017 2018 2019 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Airside Civil Contractors No range RFI Minor Building Works Below 1m RFI Building Design & Project Management Consultants Above 400k RFI Airside Design Consultants No range RFI Cost Consultants No range RFI Building Mechanical Contractors Above 75k Building Electrical Contractors Above 75k RFI 1,100 1,150 270 RFI 830 880 Airside Electrical Works Dublin Airport Central Development Contractors No range No range RFI
Our Regulatory system requires planning for projects up to 7 years before delivery Year -2 Year - 1 5 year capital period Identify projects required for next regulatory period & design project to prefeasibility detail Agree projects & budget with airlines / regulator through consultation process Design of projects, contract and deliver Budget agreed up to 7 years before execution Cost certainty is key 1,100 1,150 270 830 880
Regulatory formula allows daa to recover capex costs through airport charges Calculation of price cap; 2015 Opex Commercial Revenue 1.6bn Return on Capital (5.8%) Return of Capital (depreciation) ( 199m) 92m 82m ( 145m) 229m Provided via cap on pax charges 229m is divided by forecast passengers (22.1m) to give per passenger price cap ( 10.30) Regulated Asset Base Allowed Costs Less Commercial Revenue Airport Charges 14
Proposed Scope of Works Runway 10-28 Overlay & Associated Works Legend Runway 10-28 Overlay Taxiway Rehabilitation Runway 10-28 Line-Up points Airfield Lighting Upgrade Airfield Infrastructure for Large Aircraft Taxiway Ground Lighting Upgrade Taxiway Signage Re-designation 1 All signs within vicinity of runway and taxiways Taxiway works include overlay, drainage works and electrical upgrades Work on Runway commenced mid-may To date 12,000 tonnes of asphalt laid to date 85 electrical pits installed 800m of 8 way ducting Project scheduled to be complete April 2018
North Runway Location and Technical Details 10 year grant of planning in 2007; recently extended to 2022 Parallel to the existing Runway 10/28 Separation between the centrelines of 1690m. 60m wide plus pavement of 7.5m each side CAT III B instrument landing system. Served by a parallel taxiway to the south. Rapid exit taxiways to serve each runway direction Taxiway separations designed to accommodate larger aircraft. Airfield and approach lighting that permit automatic landing in low visibility conditions A satellite fire station A perimeter road with a 6m carriageway 16
Heathrow Dublin Long Term Planning Has Kept Flights Paths Largely Clear of Residential Development Source for London Airports: Google Maps
Therefore, many fewer houses are impacted by noise in Dublin than in the UK Houses within 60 db L day Contour 2014* 46,400 550 250 LHR LGW DUB *Excludes businesses Note: 60dB is equivalent to normal conversation; 63 db is commonly used as a threshold for noise mitigation to dwellings and other noise sensitive buildings such as schools Sources: Noise Exposure Contour for Gatwick Airport, 2014, UK Civil Aviation Authority Noise Exposure Contour for Heathrow Airport, 2014, UK Civil Aviation Authority Noise Contour Report for Dublin Airport 2014, Bickerdike Allen Partners for daa
.and the project is far cheaper than UK equivalents 8 Comparison of equivalent runway costs ( bn) 4.8 0.4 0.32 LHR LGW Manchester DUB Sources: Cost and Commercial Viability: Cost and Revenue Identification update, Heathrow, Jacobs, June 2015. Cost and Commercial Viability: Cost and Revenue Identification update, Gatwick, Jacobs, June 2015. Manchester costings obtained from: http://researchbriefings.files.parliament.uk/documents/sn00101/sn00101.pdf with construction price inflation applied to 2016
Supporting Future connectivity and economic growth in Ireland Delivering North Runway is key to developing Dublin Airport s network in the future: Increased runway capacity at peak times to cater for increasing demand Longer runway to cater for new longrange destinations, allowing for new routes and airlines Extended global connectivity (e.g. Asia, Dublin-China) Further development as a European gateway to the US North Runway will facilitate: Circa 30% increase in connectivity 2.2bn growth in GDP Circa 31,000 new jobs (7,000 of those by 2023; 1,200 during development) 20
To Get the Full Benefits we must address two Restrictive Conditions New runway not usable between 23:00hrs and 07:00hrs Restriction of 65 movements applied to airport between 23:00hrs and 07:00hrs Currently have c 100 movements during those hours EIS being prepared to 78m total lost passengers support application for 6.3m loss by 2037 proposed change in permitted operations. 2.4m loss in 2020 daa will have to make its case and the Competent Authority will decide following public consultation 21
Tender process First package Site clearance, services diversions, road realignments and other earthworks Commenced 16 th Dec 2016 Second and main package Design and build contract Successful roadshow in London (though few UK applicants) 10 initial applicants now shortlisted to 6 RFT issuing soon
Noise Mitigation Measures Voluntary Dwelling Purchase Scheme ( 69dB No Compulsory Purchases 5 houses within the contour Honour commitments - those previously offered the scheme will also be eligible, further 33 houses Launching shortly Residential Noise Insulation Scheme ( 63dB) Offering to 40% more houses than required by planning, 126 dwellings Committed to revisit previously insulated under the southern runway. Schools Insulation Scheme ( 60dB) Schools and registered pre schools 6 in total Ongoing community engagement is a priority 23
Project timeline Construction Package 1 Address Pre-Commencement Conditions
A New Era of Development at Dublin Airport Unique Connections Unbeatable Environment Unrivalled Growth
Phase 1: 41,000 sqm of grade A LEED gold targeted standard offices 4 no. 6 & 7 story office buildings Ground floor restaurant Outdoor café pavilion Terminal link to T2 Multi-storey car parking Bicycle parking and centralised public transport hub High quality urban realm with flexible uses
Thank You