Global analytics firm Timetric has released a new report providing a comprehensive breakdown of the latest airport development projects around the world.
The report has been compiled by Timetric’s Construction Intelligence Center (CIC) and has shown that despite sluggish economic growth, airport construction activity remains high in the Asia-Pacific (APAC) and the Middle East and Africa regions, with a total planned investment in projects worth US$224bn and US$172bn respectively.
According to the report, the total value of airport construction projects globally is approximately US$640bn, with the highest value development being Turkey’s US$36.2bn Istanbul New Airport project. The UK has the highest value project pipeline in Europe, mainly due to London Heathrow Airport’s potential expansion project valued at US$29bn, although this is dependent on government approval.
In the APAC region, China leads the way with nearly US$50bn in airport construction projects. This is followed by Vietnam with total projects valued at approximately US$30bn. Although India is a high growth area in terms of passenger traffic, the value of airport projects is low compared to other countries in the region.
Activity in the Middle East is being led by Dubai’s US$32bn Al Maktoum International Airport expansion project, as well as a series of projects in Saudi Arabia to better accommodate religious pilgrimages. Several expansion projects are also planned for Africa to help promote tourism in the country.
Neil Martin, manager at Timetric CIC, said, “Global airport projects’ activity follows economic growth in the markets of Asia-Pacific and the Middle East and Africa. Both regions are registering new projects and the expansion of existing airports to service their growing economies and populations. Similarly, the developed markets of North America and Europe largely show expansion or renovation of existing airports such as London’s Heathrow and O’Hare International Airport in Chicago [USA].
“Although South and Central America is lagging behind for value of projects, there is huge potential for the upgrade of its airports infrastructure, with the new US$14bn Mexico City project potentially providing a model for the region.”