CREATION OF CENTRAL ASIAN AVIATION HUB IN TASHKENT REGION PROJECT - ANSHER GROUP OF COMPANIES

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CREATION OF CENTRAL ASIAN AVIATION HUB IN TASHKENT REGION PROJECT - ANSHER GROUP OF COMPANIES
ANSHER GROUP OF COMPANIES

                    CREATION OF CENTRAL ASIAN AVIATION HUB
                         IN TASHKENT REGION PROJECT

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CREATION OF CENTRAL ASIAN AVIATION HUB IN TASHKENT REGION PROJECT - ANSHER GROUP OF COMPANIES
UZBEKISTAN - AVIATION HUB OF CENTRAL ASIA

Uzbekistan in its geographical location has no direct
access to the World Ocean, it is a double locked country.
 Necessity for increasing trade, tourism and other
spheres, requires to develop other alternative ways of
direct cooperation which are less dependent to
neighboring countries’ policies of protectionism.
The development of the aviation hub of Central Asia is
one of optimal ways of ensuring transportation and
logistics independence of Uzbekistan.
 This is an opportunity to service transit passengers
flying through Tashkent from such densely populated
countries of the world as India (1.3 billion people),
Pakistan (210 million people), Bangladesh (164 million
people) to Europe and America and back
The involvement of transit passengers in tourism
(ziyorat, historical, etc.) from 101 countries of the world
without a visa for 5 days will significantly increase the
flow of them.
The creation of a Central Asian aviation hub
connecting Asia with Europe, America and the rest of
the world will give a powerful impetus to the
development of the economy of Uzbekistan. One job at
the airport will create 6 new jobs in related industries.

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CREATION OF CENTRAL ASIAN AVIATION HUB IN TASHKENT REGION PROJECT - ANSHER GROUP OF COMPANIES
INTERNATIONAL AIR ROUTES AND HUBS IN ASIA AND EUROPE

 Uzbekistan is located at the center of the passage of air
routes between America / Europe and Asia, where more than
4.2 billion people live (61% of the total population of the
planet) and 10 regional airports (hubs) of Asia serve more
than 500.0 million passengers annually.
Uzbekistan does not use this potential, its airports are not
regional aviation hubs.
The lowest volume of passenger traffic at the Tashkent
International Airport (2.7 million passengers in 2017), which
indicates a huge untapped growth potential.
The airports of Tokyo, Seoul, Shanghai, Dubai, Istanbul,
Moscow, Paris and London are regional aviation hubs and
serve 30-80 airlines of the world.
It is necessary to build a modern international airport - the
Central Asian hub in the Tashkent region.                        Tashkent    2,7
In addition to the airplanes of Uzbekistan Airways, the new       Almaty    5,6
airport should serve 20-40 airlines of the world. This will
provide 60% of airport revenue.                                   Moscow           40
                                                                     Delhi              63,5
                                                                  Istanbul              63,9
                                                                    Dubai                      88,2
                                                                   Beijing                      95,8

 ® 2018 Ansher Capital. All rights reserved
 © 2007 Ansher Group. All rights reserved
CREATION OF CENTRAL ASIAN AVIATION HUB IN TASHKENT REGION PROJECT - ANSHER GROUP OF COMPANIES
TASHKENT REGION - THE MOST SUITABLE TERRITORY TO CREATE
           A NEW INTERNATIONAL AIRPORT

Most of International airports are located at a distance of 20-40 km from the city center.
Airports are connected to the city center by train, bus and taxi, and sometimes the subway.
Tashkent region may be a suitable region for the construction of an International airport that will serve as a Central Asian aviation hub for
many foreign airlines flying between Asia and America / Europe.

          Names of airports and countries      Distance to city    Types of transport used to
                                                   center               the city center

       Frankfurt am Main Airport, Frankfurt,       13 km          Train, bus and taxi.
  1
       Germany
  2    Schwechat Airport, Vienna, Austria          20 km          Train, bus and taxi.

       Charles de Gaulle Airport , Paris,          25 km          Train, bus and taxi.
  3
       France
       Sheremetyevo International Airport,         29 km          Train, bus and taxi.
  4
       Moscow, Russia
  5    Heathrow Airport, London, UK                30 km          Train, metro, bus, taxi.

       Franz Josef Strauss Airport, Munich,        30 km          Train, bus and taxi.
  6
       Germany
       Abu Dhabi International Airport, UAE        30 km          Bus and taxi
  7

       Arlanda Airport, Stockholm, Sweden          40 km          Train, bus and taxi.
  8

       Hong Kong International Airport             40 km          Train, bus and taxi.
  9

       Malpensa Airport, Milan, Italy              45 km          Train, bus and taxi.
 10

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  © 2007 Ansher Group. All rights reserved
CREATION OF CENTRAL ASIAN AVIATION HUB IN TASHKENT REGION PROJECT - ANSHER GROUP OF COMPANIES
SEPARATION OF THE INTERNATIONAL AIRPORT FROM NAC
           “O’ZBEKISTON HAVO YO’LLARI"

           Names of airports         Name of Managing                    Owner of Managing Company                                  Air carrier, for which the airport is the main hub
             and countries                Company
         Heathrow Airport,        Heathrow Airport            Public company. Heathrow Airport Holdings is owned       The airport is a hub for British Airways, Virgin Atlantic Airways. The
   1
         London, UK               Holdings                    by Ferrovial (25%), Qatar Holding (20%), and others.     airport is used by more than 80 airlines of the world.
         Airport Charles de       The company Aéroports       Groupe ADP, a public company where the state owns a      The airport is the headquarters and main interchange node of France's
         Gaulle, Paris, France    de Paris (ADP)              majority stake                                           national airline Air France.
   2
                                                                                                                       Nodal airport is also for XL Airways France, American Delta Air Lines
                                                                                                                       and Freight Express FedEx.
         Frankfurt am Main        Fraport AG                  Public company. The shareholders of Fraport AG are the   AeroLogic, Condor, Lufthansa, Lufthansa CityLine, Lufthansa Cargo
         Airport, Frankfurt,                                  State of Hesse (31.31%), Stadtwerke Frankfurt am Main
   3
         Germany                                              Holding GmbH (20.00%), Deutsche Lufthansa AG
                                                              (8.44%) and others.
         Dubai International      Dubai Airports Company      The Office of Civil Aviation of the United Arab          Emirates Airline, Flydubai.
   4     Airport, UAE                                         Emirates, Government of Dubai                            Secondary hub for Jazeera Airways, Iran Aseman Airlines, airblue, Royal
                                                                                                                       Jordanian.
         Sheremetyevo             Sheremetyevo                Sheremetyevo Holding LLC (66%) and Rosimuschestvo        Aeroflot
         International Airport,   International Airport JSC   (30.43%) are the main owners of the Sheremetyevo
   5     Moscow, Russia                                       International Airport shares. The remaining shares are
                                                              owned by PJSC Aeroflot (2.43%) and LLC VEB Capital
                                                              (1.1%).
         Almaty International     Almaty International        100% of the shares of JSC "International Airport of      Air Astana
   6     Airport                  Airport JSC                 Almaty" belong to the Netherlands company Venus
                                                              Airport Investment B.V.

 Foreign airports are managed by independent management companies.
 It is necessary to withdraw all the airports of the country from NAC “O’zbekiston Havo Yo’llari” and transfer them
to management companies, including foreign ones.
 To manage the Central Asian Aviation Hub, it is essential to create a new Management Company.

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  © 2007 Ansher Group. All rights reserved
CREATION OF CENTRAL ASIAN AVIATION HUB IN TASHKENT REGION PROJECT - ANSHER GROUP OF COMPANIES
UZBEK-GERMAN CONSORTIUM OF CONSULTING COMPANIES

A     Consortium of consulting companies between
Ansher Capital LLC (Uzbekistan) and Lufthansa            «Lufthansa Consulting GmbH» has 40 years experience in the
Consulting GmbH (Germany) was created to initiate       provision of aviation consulting services and the successful
and implement the various phases of the project to      completion of more than 3,000 projects worldwide, including in
create a Central Asian aviation hub.                    Russia and Kazakhstan.

 This Consortium can provide the Management
Company, authorized by the Government of the
Republic of Uzbekistan, a scope of services ranging
from researching the aviation services market,
choosing the most suitable location for the airport,
developing master and business plans, airport
development strategies and ending with the search and
attraction of foreign investments for the project.

 The Consortium will attract the best design,
architectural, construction, management and other
companies in the world to the project, as well as
develop and implement an optimal financing structure     «Ansher Capital LLC» has 20 years of experience in providing
for the various stages of the project, attracting       financial consulting services for government organizations,
investors from Europe, Asia, the Middle East and        international, foreign and local banks and companies in Uzbekistan,
America, as well as the EBRD, ADB and other             in the countries of Asia, the Middle East and Europe. It closely
structures.                                             cooperates with the EBRD, ADB, IDB, AFD and other international
                                                        financial organizations and foreign development agencies.

    ® 2018 Ansher Capital. All rights reserved
 © 2007 Ansher
   ® 2018      Group. Capital.
            Ansher    All rights reserved
                                  All rights reserved
CREATION OF CENTRAL ASIAN AVIATION HUB IN TASHKENT REGION PROJECT - ANSHER GROUP OF COMPANIES
STAGES OF IMPLEMENTATION OF THE PROJECT OF CREATION OF
            AN INTERNATIONAL AIRPORT

 The project will be implemented in several stages in the period from 3-5 years (depending on the scope of the project).
 A concession Agreement with the Government can be concluded for 15-30 years.
 For the development of each stage of the project, various types of financing will be attracted (grants, direct private investment,
financing from government funds, bank loans, Eurobond issuance, IPO and others).

                    Study of the state of
                                                                                                 Study, analysis,
                     affairs, legislation,            Choice of placement of
                                                                                            preparation of master and
                  information gathering,             the International Airport
                                                                                                 business plans
                   concept development

                                                                                             Selection of contractors
                Attraction of financing for         Conclusion of agreements                  for the creation of the
                 project implementation              (concession and others)                   International airport

                  Project implementation:                                                  Transfer of management of
                                                      Commissioning and
                      design, supply,                                                         the airport from the
                                                    management of the airport
                       construction,                                                            concessor to the
                                                        by the concessor
                 commissioning and other                                                           beneficiary

 © 2007 Ansher Group. All rights reserved
CREATION OF CENTRAL ASIAN AVIATION HUB IN TASHKENT REGION PROJECT - ANSHER GROUP OF COMPANIES
LUFTHANSA CONSULTING IS A LEADING AVIATION CONSULTANCY

      ….. dedicated
9          regional
    representatives                                          Headquarters in
     throughout the                                       Frankfurt, Germany                Transfer
              world                                                            of expertise to other
                                                                                          industries
                         40                               Dr. Andreas
                                                          Jahnke
                         successful years in              Managing
                                                          Director
                         aviation
                                                                                        Offices in
                                                                               Rio de Janeiro and
                                                                                         Moscow

                90 employees,
         with 18 different nationalities
                                                                                     Independent
                                                                                      advisor and

3000                                       Aviation                                 member of the
                                                                                        LH Group
                                           is our core expertise
aviation projects worldwide

                                                                                                       8
CREATION OF CENTRAL ASIAN AVIATION HUB IN TASHKENT REGION PROJECT - ANSHER GROUP OF COMPANIES
WHAT CAN I EXPECT FROM LUFTHANSA CONSULTING?

 Functional expertise

                                               Sales and    Network and fleet
                                             distribution       management                Finance

                                         light operations
Airline and airport   Maintenance and          and safety    Operations and     Infrastructure and
      management          engineering       management      ground handling               logistics

                                                                Product and           Revenue
Procurement and       Organization and       Customer             marketing     management and
     accounting               strategy     management           management             pricing

                                                                                                      9
CREATION OF CENTRAL ASIAN AVIATION HUB IN TASHKENT REGION PROJECT - ANSHER GROUP OF COMPANIES
A BROAD PORTFOLIO OF AIRPORT SERVICES GRANTS FULL COVERAGE
       AND COMPREHENSIVE OVERVIEW ON THE SPECIFIC NEEDS OF OUR
                           AIRPORT CLIENTS
   Airport strategy                     Master planning                   Bid management                     Air Service Development/ airline
   Organizational development           Terminal planning                 Concession development
                                                                                                                 marketing
    (CAA/Airport)                        Capacity analysis                                                     Non-aero revenue strategy
                                                                            Financial assessment and
                                         Technical infrastructure                                              Car parking optimization
   Business and financial planning       planning                           valuation
                                                                                                                Business diversification concepts
   Cost optimization and revenue        Airport city/industrial zone      Economic impact analysis
                                                                                                                Due diligence
    enhancement                          Hub development                   Business planning

             Airport                               Airport                             PPP and airport                    Airport business
             management                            planning                            privatization                      development

               Airport
               services

                                                   Cargo and MRO                       Analysis and                       Airport service
             Airport operations
                                                                                       forecasts                          quality
   Operational planning                 Cargo warehouse planning          Route and network development      Airport service quality concept
   Process assessment and               Cargo city planning               Route profitability analysis        and benchmark
    optimization
                                         Free economic zone                Market potential analysis          Quality assessment and
   Ground handling start-up                                                                                     enhancement
   Resource management                  Cargo logistics                   Aviation trends analysis
                                                                                                                Customer service
   Airport safety and security          MRO facility planning             Air traffic forecast
                                                                                                                Reward and recognition program

                                                                                                                                                   10
LUFTHANSA CONSULTING METHODOLOGY COMPRISES 5 PHASES OF
    DETAILED ANALYSIS AND COMPREHENSIVE UPDATE OF THE MASTER PLAN
                             DEVELOPMENT
1                              2                               3                            4                               5
    Market potential               Strategic
                                                                   Airport Master               PPP concept &                   PPP
    analysis and traffic           development
                                                                   Plan                         strategy                        implementation
    forecast                       options

     Competitive               Identification of possible        Conclude on                Selection of                    Tender implementation
      environment analysis       infrastructure                     preferred strategic         privatization model              plan and preparation
     Macro-/micro-              development options                option                     Evaluation of strategic          (e.g. timing, phasing,
                                                                                                                                 EoI & RfP vs. only RfP)
      economic factors           considering:                      Identify capacity           options (clustering,
      analysis                           Capacity                  requirements for new        concession fee,                 Investor universe &
                                          limitations of the                                    participation of local or        identification of target
     Development of                                                airport based on peak
                                                                                                public entities)                 list of top investors
      market potential                    existing airport          hour analysis
      analysis and traffic               Hub                      Master plan (layout)       Risk assessment                 Promotion of the
                                          development                                                                           transaction (Information
      forecast for Tashkent                                        Definition of short-,       Strategic roadmap
                                                                                                                                 Memorandum)
      region                              potential for             mid- and long-term         Simulation of strategic
     Peak-hour capacity                  new airport               development phases          options                         Evaluation of EoIs
                                         Business model                                                                         according evaluation
      calculation                                                  Development of             Preparation of Profit &          criteria & shortlisting of
     Assessment of existing              identification for        investment program          Loss account and
                                          all airports                                                                           bidders
      conditions and                                                and schedule                financial statement for
                                Multi-criteria                                                 simulated options               Launch of RfP
      capacity analysis of                                          (CAPEX)
      existing airport           assessment of                                                 Evaluation of financing         Investor communication
      facilities                 development options:                                           options                          (Q&A, site visits, bidder
                                         Traffic                                                                                conference)
                                                                                               Decision on preferred
                                          scenarios
                                                                                                privatization model &           Bid evaluation
                                         Operational                                           scope                            according evaluation
                                          impact                                                                                 criteria and
                                         CAPEX impact                                                                           recommendation
                                Recommendation and
                                 selection on preferred
                                 option

                                                                                                                                                         11
IMPLEMENTATION OF THE INITIAL STEPS OF THE PROJECT WILL TAKE
     APPROXIMATELY 8 MONTHS, DEPENDING ON DATA AVAILABILITY AND
                      DECISION MAKING PROCESS
Project plan

Activity          Month 12      01       02        03        04       05        06   07   08         09   10      11
MPA & Traffic forecast

Strategic options

Master planning

PPP concept

PPP implementation

   Milestone   Meeting (Kick-off, Status meeting, Steering Committee meeting)             Duration             Time buffer

                                                                                                                        12
WORK EXPERIENCE OF LUFTHANSA CONSULTING IN AVIATION
                           CONSULTING
                        (A FEW EXAMPLES)
              Name of project                 Country                              Contents of services
1    Rostov-on-Don International Airport   Russia            Development of a Master plan for a new airport
2    “Koltsovo” Airport, Ekaterinburg     Russia             Development of a Master plan for an existing airport
     “Sheremetyevo” International Airport Russia             Evaluation of an airport development feasibility study to assess market
3
                                                             potential and design a third runway
     Khabarovsk Airport                    Russia            Analysis of market potential, traffic forecast, business planning and
4
                                                             capital expenditure forecast
     Sochi International Airport (Adler)   Russia            Analysis of the operational concepts of the airfield area, the passenger
5
                                                             terminal and the adjacent territory of Sochi International Airport
     Almaty International Airport          Kazakhstan        Development of a Master plan (for the next 20 years)
6

     Ministry of finance, Athens           Greece            Preparation and implementation of the project on transferring the
7
                                                             airport to concession management
     Ferihegy Airport, Budapest            Hungary           Comprehensive study on the construction of a new passenger terminal
8

9    GMR Airports Limited, New Delhi       India             Traffic forecast and study of multi-hub
     World Bank, PAC, Bamako               Republic of Mali Preparation of the project on transferring the airport to concession
10
                                                            management

                                                                                                                                   13
BENEFITS OF CREATING AN AVAITION HUB

 The formation of an aviation hub at the airport allows you to compete with low-cost carriers, as well as to optimize the
structure of costs and revenues: economies of scale appear.
 In the case of an aviation hub, it is not necessary to connect all the cities of its route network, as is done by low-cost fires. It
is enough to fly from one city; all that needs to be done is to provide passengers with a comfortable docking.
 The main task of an aviation hub is to serve transit passengers.
 It will be the only aviation hub in Central Asia.

  For Uzbekistan the hub has the following                   For airline companies the hub will provide the following
  advantages:                                                advantages:
  - will lead to an increase in GDP, creation of new         - will increase the frequency of flights;
  jobs, and attraction of foreign direct investment in       - will reduce market risks due to passenger retention in their flight
  the region;                                                network;
  - develops tourism and improves the image of the           - will increase the expansion of low-cost airline networks.
  country;
  - strengthens ties with international markets.

  Passengers will obtain profit due to:                      Airports that become hubs will be able to:
  - an increase of direct flights;                           - increase the passenger flow;
  - more opportunities to return the same day;               - increase profit;
  - a wide scope of flight directions;                       - strengthen their position in the aviation market compared to
  - cheaper airline tickets and etc.                         conventional airports.

 ® 2018 Ansher Capital. All rights reserved
  © 2007 Ansher Group. All rights reserved
THE CENTRAL ASIAN AVIATION HUB AND TOURISM DEVELOPMENT

 The creation of a Central Asian aviation hub on the basis of a modern airport complex with a railway station (and possibly a
subway), as well as a connection to an intercity highway, will provide tourist and other services to transit passengers.
 In this regard, the name of the international airport is also important. Proceeding from their strategic goal of developing inbound
tourism in Uzbekistan, in particular, the land of tourism, it would be appropriate to name the airport Imam Al-Bukhari. This name
alone will allow its numerous admirers from the Muslim world to try to visit Samarkand and Bukhara and accordingly use this
airport.
 Travel agencies, whose offices will be located in the airport building, will organize for transit passengers arriving from India,
Pakistan, Bangladesh, Indonesia and other countries short-term ziyorat tours on the holy sites of Samarkand and Bukhara, as well as
business tours to Tashkent. This would significantly increase the number of tourists.
 In 2017 about 1 mln. people from Asian countries and Russia made a hajj to Saudi Arabia: Indonesia - 221.000.00 people;
Pakistan - 179.000.00 people; India - 170.000.00 people; Bangladesh – 127.000.00 people; Iran – 86.500.00 people; Turkey -
79.000.00 people; Egypt – 108.000.00 people and Russia - 20.000.00 people.
 By organizing tours "Hajj + Samarkand", "Umra + Samarkand", etc. it will be possible to provide a stopover for a couple of days
at the Imam al-Bukhari airport, make a “small hajj” to Samarkand and Bukhara by high-speed train or bus, and then fly to Jeddah.
This will allow to develop ziyorat tourism, to attract millions of tourists to Uzbekistan.

  ® 2018 Ansher Capital. All rights reserved
  © 2007 Ansher Group. All rights reserved
ORGANIZATIONAL STRUCTURE OF INTERNATIONAL AIRPORT
         MANAGEMENT

               GOVERNMENTAL STRUCTURES                                      PRIVATE STRUCTURES

                                                         FOUNDERS

                                                     MANAGEMENT COMPANY
                                                        IN FORM OF PPP

                                                     INTERNATIONAL AIRPORT
                                                   CENTRAL ASIAN AVIATION HUB

                                                           CONCESSOR
                                             FOREIGN MANAGEMENT COMPANY FOR AIRPORT
                                                          MANAGEMENT

DESIGN, ARCHITECTURE,                             PROCUREMENT, CONSTRUCTION,           AIRPORT MANAGEMENT
     PROJECTING                                      INSTALLATION, TRAINING

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© 2007 Ansher Group. All rights reserved
FINANCING THE CONSTRUCTION OF AN INTERNATIONAL AIRPORT

   Financing for the construction and equipping of an international airport can be attracted both from foreign companies specializing in
   the design and construction of airports, and from the international capital market. Part of the funds may be attracted in the form of
   bank loans, part in the form of direct investment.

                                            Direct investments                                   Loans                    Technical assistance
Financing from
state and local
budgets

                                  Direct domestic          Foreign Direct        International             Domestic         Foreign
                                    and foreign           Investment Fund         and foreign            banks (foreign     development
                                    investment             (Private Equity           banks                credit lines)     agencies
                                                                Fund)

                                                                  Investment project

                                                                 “International airport”

     ® 2018 Ansher Capital. All rights reserved
      © 2007 Ansher Group. All rights reserved
ANSHER CAPITAL - ORGANIZER OF ATTRACTION OF DIFFERENT
             TYPES OF FINANCING FOR PROJECT IMPLEMENTATION

         Ansher Capital is the leading investment-banking company in Uzbekistan;
         The company successfully conducts business on regional and international level;
         Has extensive experience in attracting financing for various national and regional companies of various
          industries;
         Provides access of Uzbek companies to foreign capital markets and assists foreign companies in
          entering the markets of the region;
         It has a wide international base of investors, including in major international financial centers (New
          York, London, Paris, Zurich, Shanghai, Singapore, etc.);
         Ansher Capital received international and national recognition, including 5 Euromoney awards
          (“Euromoney”, United Kingdom) as “Best Investment Bank” in Uzbekistan and Central Asia, 1 IMEA
          Finance award (“EMEA Finance”, United Kingdom) as “Best Investment Bank in Uzbekistan ”and 4
          awards of the Center for the Coordination and Development of the Securities Market of Uzbekistan as
          the“ Best Investment Consultant”.

® 2018 Ansher Capital. All rights reserved
    © 2007 Ansher Group. All rights reserved
CONTACTS

                  ABBOSKHON RASULEV                             ASKHAT TORSHIN
                     General Director                 Permanent Representative in Russia and CIS
        E-mail: abboskhon.rasulev@ansherglobal.com       E-mail: askhat.torshin@lhconsulting.com

                      AMUR DJALILOV                           STANISLAV SOLOMKO
                     Deputy General Director                      Associated Partner
           E-mail: amur.djalilov@ansherglobal.com            Head of Market Russia and CIS
                                                       E-mail: stanislav.solomko@lhconsulting.com

                 Uzbekistan, 100052, Tashkent,       Mosenka Plaza 2, Building 3, 3rd floor, Tsvetnoy
                    Katta Darkhon str., 19              boulevard 25, 127051 Moscow, Russia
                   Tel: + 998 71 268 99 70                      Tel.: + 7 903 7982546
                 Web: www.ansherglobal.com                  Web: www.lhconsulting.com

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© 2007 Ansher Group. All rights reserved
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