GERMANY. Frankfurt Airport operator Fraport has landed two big investment contracts – in China and in Senegal – as the group expands its influence overseas.
Fraport is taking a 24.5% share in Xi’an Airport in central China and will take charge of its operations and commercial development. Fraport is the first foreign operator to invest in a Chinese airport that is not listed on the stock exchange.
“We are playing a pioneering role in this important area and I think we can certainly be proud of this success,” said Fraport Executive Board Chairman Dr. Wilhelm Bender.
Fraport will invest approximately €50 million in the project. Approval from the Chinese authorities and completion of the transaction is expected in the third quarter of 2007.
Bender stressed that Fraport is now opening “a new chapter” in China – following the company’s airport concession contract at Delhi, India, last year. He described the company’s participation in Xi’an as a “first step” and indicated that Fraport intends to expand its activities in the Chinese market.
Xi’an, the capital of Shaanxi Province, has a population of about 7.2 million. It was China’s first imperial city. The famous silk road begins at Xi’an and the city is especially well known for its two-thousand-year old Terra Cotta Warriors – China’s second-biggest tourist attraction after Beijing.
The airport’s previous and exclusive owner, the state-owned China West Airport Group, will retain the majority of shares. Fraport’s second project partner is China National Aviation Corporation (Group) Limited.
Xi’an Airport welcomed about 9.4 million passengers in 2006. For the current year, the airport expects almost 11 million passengers.
In other Fraport news, the company – as part of a consortium – has won the contract to operate the planned new airport in Dakar, Senegal, for a period of 25 years. The foundation stone for the new airport was laid last week and completion is expected by 2010/2011.
Dakar Airport currently has a capacity of around 1.5 million passengers per year. Plans for the new airport call for initially 5 million passengers per year.
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