Aerotropolis:Are airport cities the wave of the future? by Steve Richards

Aurecon “Thinking Transportation” Conference Jakarta, 28 April 2015

What, if instead of airports being perceived to only be this…

Congested Noisy

Smoggy

2

Crowded

Noisy

And also this…

A d

estin

atio

n

A conduit

Fac

ilita

tor

of G

row

th

How can they be those things?The aviation industry has changed, driven by……

Global Air Transport – 1950 to 2012

Between 2010 and 2030, world-wide commercial passenger traffic will likely increase from 4.9 billion to 13.3 billion

Over one-third of the value of world trade already moves by air

In the same period, world air freight is expected to more than triple

Almost all high-tech supply chains are connected by air cargo

Leading to the growth of Aerotropolis

….and as a result of that we are seeing:• rapid commercial development around

many major airports• airports developing a “brand image”

attracting non-airport linked businesses

Airports have become regional economic accelerators:• Providing accessibility, speed and agility

to global supply chains• Connecting business people to their

customers • Serving commercial needs of millions of

air passengers and airport-area visitors annually

• Have become significant employment, shopping, trading and business destinations in their own right

A change in mindset/thinking… happening now

So, with Aerotropolis instead of thinking about a “city airport” we can change our mindset to be more integrated and development focused and say an “airport city”

….could we do the same for other infrastructure, say port development?

JV between developer, Frankfurt Airport and German Government

Direct access to rail, road and air

Largest office building in Germany

Retail, 2 Hilton hotels, European h/o KPMG, Lufthansa h/o, training and conference facilities, day-care centre

7,000 permanent employees and 3,000 visitors every day.

The SquaireFrankfurt International Airport

What are Airport around the world doing?Commercial Development

More A-Class office space than downtown Washington

Second largest retail precinct in the US (after Manhattan)

Fastest growing ICT manufacturing are in the US

But all along the corridor Airport has now taken an interest in

the string development along this corridor

Washington Dulles Airport

What are Airport around the world doing?

Commercial Corridors

Until 2010 the busiest cargo airport in the World

FedEx directly employs 31,500 people in the Memphis area

Memphis has attracted international distribution centres for Hewlett Packard, Nike, Sharp in Memphis

FedexMemphis International Airport

What are Airport around the world doing?

Courier Services

Within 750m of airport fence Children’s Hospital, Women’s Hospital, 466 bed Acute Care Facility, Laboratory

Services Delivered 3 700 babies last year

Sacred Heart Facility - Pensacola International Airport

What are Airport around the world doing?Medical Facilities

What are Airport around the world doing?

Hotels and Conference Venues

Fourth busiest airport in the World

Hotel has 13 000m2 of function space with 90 meetings rooms

Distance education facility

Hyatt Regency / Grand HyattDallas/ Fort Worth International Airport

61 000 people employed at the airport Close to 200 000 employed within 6km Zuidas 5km from airport fence – 2.5 M m2, 43% commercial/15% industrial/42% residential Business represented - Aalsmeer Flower Auction, ABN AMRO, ING, Menzies

Zuidas - Schiphol International Airport

What are Airport around the world doing?Regional Mixed Development

Surf & Style European Surfing Championships since 2011

Munich International Airport

What are Airport around the world doing?Leisure Activities

$1B market by 2025, 24 spaceportsSpaceport America

$209M Norman Foster facility Home of Virgin Galactic

Curacao Spaceport America (New Mexico)

What are Airport around the world doing?Spaceports

Curacao On Hato Airport 3.5km runway Well-established tourism industry

How to do an Aerotropolis Solution…The Process

Organize the aerotropolis development around a clear vision

The vision guides the development of a set of principles

Those principles, when combined with the constraints and opportunities growing out of

the physical /environmental context,

the policy environment and the political environment,

allow the identification and evaluation of broadly defined development opportunities

These then lead to the planning, design and implementation of specific projects

Learning Points from our Experience

The “just in time” expectations of consumers means that airports really ARE now the dominant-shaping infrastructure asset in cities

The aerotropolis model can maximise regional economic growth/competitiveness and community wellbeing

The solution requires stakeholder understanding/appreciation, even if not full agreement

Success requires rigorous, evidence-based, wide-ranging, integrated and creative planning (physical, economic, social) – but also some bold experiments

Strong, coordinated project governance is essential

Success requires a commitment to integrated planning decision-making

Urban Planning

Economic Planning

Airport Planning

Why could Aerotropolis work better in Indonesia/Asia than in western nations?

Most (although not all) new Asian airports are greenfield developments, or at least in less developed areas

Better able to master plan to adopt the Aerotropolis model, rather than a “compromised” Aerotropolis model

Less or no retrofitting, which is expensive, less effective and inevitably constrained by existing airport development

Western nations are facing relatively low growth, saturated markets – benefits can take time to realise

In Asia a good idea/product can take hold very quickly – speed to market is always important - Aerotropolis can facilitate production and distribution

Asia’s speed of current & future economic growth means that Aerotropolis fits into a context of growth, entrepreneurship, opportunity and relatively less competition with other industry sectors

Western nations are facing relatively low growth, saturated markets – benefits can take time to realise

In Asia a good idea/product can take hold very quickly – speed to market is always important - Aerotropolis can facilitate production and distribution

Asia’s speed of current & future economic growth means that Aerotropolis fits into a context of growth, entrepreneurship, opportunity and relatively less competition with other industry sectors

Conclusions

Airports around the world are evolving to become much more than transit assets – they are city shapers and drivers of economic growth

Progressive city managers are therefore explicitly integrating airports into their overall urban and metropolitan plans

The success of those plans relies on well planned regional development as well as a well planned airport

This is a structured and tested approach which can be used – critical for implementing projects

The structured aerotropolis approach could be used for ports and other infrastructure

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