CHINA. China’s latest high profile airport in Guangzhou has issued tenders for duty free and food & beverage this week.
The first phase of the terminal complex at the new Baiyun International Airport in the booming city of Guangzhou opens this Summer. At 305,000sq m (3.28 million sq ft), with large spaces for concessions, it is 20,000 sq m (215,200 sq ft) larger than the current Beijing Capital Airport and approximately 50,000sq m (538,000sq ft) bigger than Shanghai Pudong.
It takes the form of a large X shape, channelling passengers into four separate zones, which has drawn some criticism from global retailers interested in tendering for the business.
The China Power Duty Free Group joint venture (King Power Duty Free Group (HK) and China Duty Free Group) is known to be in talks with the Guangzhou Baiyun International Airport Co.
As King Power director Ayub Khan told The Moodie Report recently: “Together as China Power, we [King Power and CDFG] have got several projects coming up. We are talking about Guangzhou and Tsingtao with them and other new developments.”
But one operator who decided not to bid told us: “There is very little information on passenger patterns. The layout is quite long and impractical, and there is no information on utility costs. There are many unknowns.”
Tenders were opened on 8 May with financial bids due by 26 May but some operators have said the ten day-period provided to submit initial technical bids is too short. Sites earmarked for duty free shops and restaurants are currently laid out as big boxes, with insufficient storage and, in the case of food & beverage, without exhaust, drainage and other essential utilities.
It seems such an uncertain environment could result in local businesses affiliated to the city authorities or Guangzhou Baiyun International Airport Co getting at least part of the business. All independent duty free shops on the Chinese mainland (outside Special Economic Zones) are still required to purchase supplies from China Duty Free Group (CDFG), the leading supplier to and operator of the country’s duty free shops. CDFG buys certain product categories through its China Power joint venture.
The terminal will have more than 25,000sq m (269,000 sq ft) of commercial space available at the grand opening date scheduled for next month.
Construction is reported within budget and on time for the huge project in China’s major southern city Guangzhou; its West and East runways, a new inflight catering centre by a Lufthansa LSG/airport authority joint venture, and interior terminal fitting are all completed. Three different categories of airport lounges have been built, including one for China Southern Airlines’ Sky Pearl Club.
The airport has completed an extensive six month testing period of systems such as baggage handling, electrical lighting, fire protection, security, moving walkways, elevators and escalators. It has just been turned over to the Guangdong Provincial Government.
A new 500-room hotel – which is on the north side of the main terminal – is currently under construction and includes a convention and exhibition centre with ballrooms and restaurants.
The new Baiyun International Airport terminal complex will ultimately be built-out to 700,000sq m (7.53 million sq ft) in later phases. The ground floor will house additional commercial space and the lowest level – linked by elevator and escalator – will be the entrance to the Metro to downtown Guangzhou.
For a full interview with King Power Duty Free Group (HK) management and its plans for regional expansion see The Moodie Report May print edition out next week.
