GRU Airport set to announce winning bidder for T3 duty free concession

Guarulhos Terminal 3 will become Brazil’s key international aviation gateway

BRAZIL. GRU Airport Aeroporto Internacional do São Paulo is close to a decision on awarding the duty free concession for its new Terminal 3 at Guarulhos International Airport.

A GRU Airport spokesperson confirmed to The Moodie Report that “in the coming days we should be announcing the company that is going to administer duty free in Terminal 3.”

The concession encompasses 6,000sq m of retail space and would be awarded for a term of ten years, which could be altered in line with the winning proposal, the spokesperson said.

Beyond this, GRU Airport is not divulging any further information prior to the announcement.

That position is in line with the company’s policy of pursuing private and direct negotiations with commercial partners, in a departure from the public bidding process required by the previous Guarulhos operator, state airport authority Infraero.

GRU Airport had earlier indicated that Dufry would have a role in T3 retailing, along with its enhanced presence in Terminal 2, but had not confirmed any details.

It now appears to be favouring a sole operator model for T3 – the most lucrative prize in Brazilian duty free – with World Duty Free Group (WDFG) and Flemingo the main challengers to Dufry.

Respected Brazilian newspaper Valor Econômico reported on 26 June that WDFG had lodged its proposal for duty free in Terminal 3 in the previous week.

It quoted WDFG CEO José Maria Palencia rating Guarulhos as one of the group’s major international priorities for 2013, with a “transformative” potential for the business.

WDFG is establishing its first travel retail operation in Brazil at Belem International Airport, where it will open two small duty free stores .

Flemingo’s bid, apparently “aggressive”, is firmly in line with its focus on emerging markets.

In November 2012 Dufry secured a two-year extension to its duty free contract at Guarulhos, covering Terminals 1 and 2, to 2016.

Dufry is currently doubling the space of its T2 Arrivals store to approximately 3,000sq m, and increasing Departures from 350sqm to 1,000sq m in a walk-through format.

Dufry is also refurbishing other duty free and duty paid outlets in T1 and T2.

A new-generation international terminal

If it fails to secure the T3 duty free concession, Dufry may be left with duty paid outlets in the new terminal.

That would be small consolation: T3 is set to become the key international gateway not only for São Paulo but for all of Brazil.

Guarulhos International generates over 60% of Brazil’s total international passenger movements, so T3 now represents by far the most important duty free concession in the country.

Due for completion ahead of the FIFA World Cup in June 2014, the 192,000sq m terminal will exclusively serve international flights, and has a 12 million passenger annual capacity.

T3 will reverse the traditional landside orientation of Brazilian air terminals, with 70% of its commercial space being airside.

After opening T3, GRU Airport will allocate T1 solely to domestic services, with T2 handling both international and domestic flights.

Guarulhos Airport had 32.8 million passenger movements in 2012.

From January to May 2013 the airport handled over 14 million passengers, an increase of +6.2% from the same period in 2012.

With numbers like that, it is no wonder that the contest for T3 duty free operations has transformative potential for the competing parties – and will be keenly watched globally.

An artist’s impression of a T3 area to be occupied by duty free retail
The spacious Terminal 3 – bigger than T1 and T2 combined – will ease some of Guarulhos Airport’s peak-time congestion
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