New Airport Plan: San Miguel Out, Tiengs of Solar TV In

With San Miguel Corp. dropping out of its short-lived partnership with Philippine Airlines, it looks like the Tiengs of Solar TV have taken the lead role in pushing for an alternative airport within Manila Bay.

And judging from their recent European investor briefing, Solar TV chairman Wilson Tieng and his brother/vice chairman William Tieng are confident that their unsolicited proposal to build a combined airport-seaport terminal off Sangley Point in Cavite is just one regulatory hurdle from being accepted by the PNoy government.

“The project has just one last level of approval to hurdle — clearance from the National Economic and Development Authority, chaired by President Benigno Aquino III,” the European logistics industry paper, Loadstar, reported last week.

“From the day that we sign with the government, it will take two-to-three years to reclaim the land and another two-to-three years to build the facilities,” said Rommel Gavieta, chief operating officer of the All-Asia Reclamation and Resources Corp., the Tieng-led consortium that includes the Munich airport operator FMG and Hamburg port operator HHLA.

Gavieta was in Rotterdam as one of the conference speakers in the 2014 Intermodal Europe exhibition for container, transport and logistics industry.

To carry out their ambitious proposal, the Tiengs are proposing to reclaim three islands parallel to the western side of the Sangley airport, the biggest of which, some 2,000 hectares to rise from the sea, will accommodate a two-runway airport and a passenger terminal.

The two satellite islands are also being proposed as a bulk liquid depot to replace the Pandacan oil terminal and as an alternative container facility to help decongest the Manila harbor.

The Tieng proposal calls for an 17-kilometer elevated road and viaduct that will directly link the new airport with the present Ninoy Aquino International Airport, along with a ferry service with a terminal near the Mall of Asia.

In addition, another 32-kilometer light rail network parallel to the Manila-Cavite Expressway will link the proposed airport from the planned Zapote light rail station.

The Tiengs and their foreign consultants estimate the entire project could cost a staggering $30 billion, but it is not clear who would provide the financing for such an ambitious undertaking.

According to the project website, the consortium has already secured the services of Deutsche Bank as financial advisor for both its planned “Aquino Sangley International Airport” and “Aguinaldo Sangley International Port.” And for the light rail component, the Tieng consortium has also tapped the Italian rail company Circumvesuviana, the rail operator for the southern Italy’s Campania region.

The Tieng reclamation site is different from a similar unsolicited proposal of developer-contractor DM Wenceslao, who is proposing to build the airport-shipping port complex at the other side of the Sangley peninsula, facing the Cavite coastal road. In addition, DM Wenceslao is proposing to use the existing Sangley runway, to be lengthened and modified to international standards, for the new airport.

The San Miguel-Ramon S. Ang airport proposal, on the other hand, is closer to the reclaimed area of what is now Pagcor City, with the San Miguel’s 4,000-hectare footprint most likely would overlap that of DM Wenceslao’s.

Under the Tieng proposal, the general aviation traffic in the Sangley airport would be consolidated back to Manila, with a new terminal beside the Air Force/Presidential hangar.

The four current terminals of the Ninoy Aquino International Airport, on the other hand, would be converted into a casino-mall (Terminal 3) and office complexes.

The larger remainder of the 400-hectare NAIA complex would in turn be converted into a new business-commercial-residential district that would eclipse the Makati and Ortigas business districts combined.

Source: InterAksyon

3rd Runway at MNL’s Congested Airport (And It’s Final)

3rd runway for NAIA
3rd runway for NAIA

Philippine President Benigno Aquino has ordered the construction of a third runway at Manila’s main international airport to ease air traffic congestion in one of Southeast Asia’s fastest growing economies.

The project is expected to cost at least 2.4 billion pesos ($55 million), and the amount may increase to include the construction of a fourth terminal at the airport, Transportation Secretary Joseph Emilio Abaya said.

“The president’s guidance was very clear. We’ll find ways to have this completed before his term ends because the benefits are clear,” Abaya told Reuters. Aquino steps down after a single six-year term in June 2016.

The runway would be a quick-fix solution to the congestion plaguing Manila’s dilapidated airport, which is currently the main gateway for international travel. The government is also looking into building another international airport at a former U.S. naval base southwest of the capital to serve future growth in travel and tourism.

Another runway would increase the number of planes taking off and landing to 48 planes per hour from 42 planes currently. If an additional airport terminal is built, the take-off and landing rate could further rise to at least 58 planes an hour, Abaya said.

Source: Yahoo News

NAIA T1 and T2 To Be Connected

NAIA Terminal 1 under renovation.
NAIA Terminal 1 under renovation.

MANILA, Philippines – The Department of Transportation and Communications (DOTC) is now looking at further expanding the capacity of the congested Ninoy Aquino International Airport with the full operations at NAIA Terminal 3 to cope with the increasing number of tourists.

Transportation Secretary Joseph Emilio Abaya yesterday said the government is mulling the interconnection of terminals 1 and 2 of NAIA.

Aside from building a NAIA Terminal 5, Abaya pointed out that the government is studying the possibility of augmenting the passenger capacities of both terminals 1 and 2.

“It will be better if we could bring NAIA Terminal 2 closer to Terminal 1. It will become more convenient for passengers to transfer,” he said on the sidelines of the inaugural flight of Delta Airlines and the opening of its Pacific Club lounge at NAIA 3.

Abaya said the government would first relocate the fuel depot between the two terminals so it could build a structure connecting both passenger terminal buildings.

Latest data from the Manila International Airport Authority (MIAA) showed that the number of domestic and international passengers increased by 3.1 percent to 32.865 million last year from 31.877 million in 2012.

The four terminals in NAIA have a combined capacity of 30 million.

The DOTC chief earlier announced plans to put up a fifth terminal in NAIA. The building would rise beside the NAIA 3.

He added that the agency is now also resolving the issue concerning the Philippine Village Hotel that is partly owned by the state-run Government Service Insurance System (GSIS).

He said the agency is just awaiting valuation of the Commission on Audit (COA) on the property so it could settle the amount with the GSIS.

“Whatever value – half of it or a fraction of it – will be paid to GSIS then we demolish the building and plan the expansion of Terminal 2,” he said.

He pointed out that the DOTC is also waiting for the recommendation of a consultant with regard to the planned P2-billion parallel runway that would result in more landings and take-offs.

The main issue of the proposed runway that could accommodate Airbus A320 aircraft, he said, is the dislocation of close to 600 families.

Delta Airlines has completed its relocation to NAIA 3 with the opening of its lounge yesterday. Other foreign airlines including KLM Royal Dutch Airlines, Emirates, Singapore Airlines and Cathay Pacific Airways are scheduled to transfer to NAIA 3 from NAIA 1 within the next two months.

Takenaka Corp. of Japan has completed the P1.9- billion rehabilitation of NAIA 3, paving the way for the transfer of the five foreign airlines.

Abaya said the transfer of the “Big Five” to NAIA 3 would decongest NAIA 1 by bringing the volume of passengers back to design capacity of four million from the current eight million.

On the other hand, the volume of passengers at NAIA 3 would increase to about 10 million compared to its design capacity of 13 million a year.

The DOTC chief cited a slight delay in the ongoing P1.3-billion rehabilitation of NAIA 1 being undertaken by DMCI Holdings that is supposed to be completed by January.

“About 80 percent of its passenger area should be done by end February next year. There will be lingering work underneath the passenger area but will not be felt by passengers,” he said.

Based on the recommendation of the Japan International Cooperation Agency (JICA), the DOTC is looking at putting into operation a new international airport probably at Sangley Point in Cavite by 2027 with the joint development of NAIA in Manila and the Clark International Airport in Pampanga.

The government is open to evaluating the proposal of SMC to put up a new $10-billion airport in a 1,600-hectare property owned by CyberBay Corp. along the Manila-Cavite coastal road.

Source: Rudy Santos, The Philippine Star  

OPINION: NAIA Complex – So Much Space, Too Small Brains!

NAIA Terminal 3
NAIA Terminal 3

For quite sometime now the perennial debate on the NAIA congestion solicited solutions and proposal from all corners of the globe and yet we see airlines queing both on runways 06-24 and 13-31 like our airport is extremely busy, an insult to the likes of Heathrow, O’hare and HKIA among others.

The supposedly impressive President’s men are on top of the situation, educated abroad, social and civic seasoned leaders and it seemed their most common of common sense pulverized to kingdom come.

Issues such as perpendicular runways are a hindrance to maximum airport activity (take off and landings) is a complete blatant lie. Almost all, if not all, the busiest airports in the world have perpendicular runways and it was never pegged as a regressive factor to maximize airport utilization.

Runway 13-31 from NAIA 2 and the adjacent property of the former Nayong Pilipino can accommodate a parallel taxi way covering the whole stretch of NAIA 3 across. Both ends of 13-31 can still be extended to serve bigger aircraft types, sans politics, the structures of the general aviation alongside NAIA 4 must have not been allowed to expand and erect massive hangar structure instead should have been made a runway threshold.  

This can significantly resolve the congestion for aircraft lining up to take off at 13-31 and aircraft lining up to park at bay on either NAIA 3 or NAIA 4 (the terminal long overdue for demolition). Next is the vast land space of the Nayong Pilipino complex, it can either be an option for NAIA 2 to expand or a new low cost terminal.

The cargo wing of NAIA 1 can outrightly be converted into a terminal equipped with jetways/air bridges and a monorail to connect passengers from NAIA 1 to the cargo terminal. There is a way if only there were brains really working to resolve it.  A significant amount of budget maybe cut if the government would seriously take these steps into consderation and the best thing about reconsidering the NAIA complex as it can be implemented the soonest possible time with minimal cost.

JG Summit Ready To Join SMC For USD 10B Airport Project

MANILA, Philippines—Gokongwei-led JG Summit Holdings, owner of dominant budget airline Cebu Pacific, is open to partnering with San Miguel Corp. should the government approve the latter’s proposed $10-billion international airport in Manila Bay, company president Lance Gokongwei said. The planned airport, which was recently presented to President Aquino but still requires various approvals from several departments, was aimed at decongesting Manila’s Ninoy Aquino International Airport.

Gokongwei also welcomed San Miguel’s airport suggestion, citing Naia’s single runway as a factor behind congestion at the aging Naia complex, which handled about 32 million passengers last year.

“We will certainly consider [San Miguel’s airport] if we were approached,” Gokongwei said.

“Clearly, the limiting factor is now capacity. Any plan to increase access to a capital city like Manila should be thoroughly considered,” he added.

Airlines like Cebu Pacific and Philippine Airlines, partly owned by San Miguel, would benefit from a new airport. PAL, for example, claimed that it loses about $2 million per month due to delays related to airport congestion.

Ang’s proposal calls for a four-runway international gateway, which would occupy half of the 1,600 hectares San Miguel would need to reclaim in Manila Bay. Gokongwei was among three groups that Ang said San Miguel could partner with. He also cited Henry Sy’s SM Group and Ayala Corp., led by the Zobels.

Each of these companies also made unsuccessful bids for the P17.5-billion Mactan-Cebu International Airport public private partnership deal, which was bagged by Megawide Construction Corp. and India’s GMR Infrastructure last month.

SM confirmed in a stock exchange filing Tuesday that it would consider participating in San Miguel’s airport proposal. Ayala Corp. managing director Eric Francia said in an e-mail to the Inquirer there have been no discussions at this time.

The proposal was still in the early stage and the Department of Transportation and Communications said it would invite San Miguel to provide more details.

The proposal would be under a build-transfer-operate scheme and will have transport links including a proposed 15-kilometer Airport Expressway linking to Fort Bonifacio, Ortigas and Eastwood, with alternative routes to Makati City.

It also includes plans for an “airport express rail service” that would bring the total travel time between the airport and the Makati City financial district to 11 minutes. Ang said San Miguel would welcome an open bidding process should his proposal be accepted by the government.

“Everybody will have an equal chance to build this airport using the same location, same idea and same study, which I have provided the government,” Ang said in an interview last week.

Source: Miguel R. Camus, PDI

SMC Reviews Airport Partners


By Jennifer B. Austria, MST
Image Source: Angelo Agcamaran

San Miguel Corp. president and chief operating officer Ramon Ang said Tuesday he is studying offers from several conglomerates interested in teaming up with his company to build a $10-billion Manila Bay airport.

Ang said in an interview he received calls from SM Investments Corp. vice chairman Tessie Sy and JG Summit Holdings Inc. president and chief operating officer Lance Gokongwei about the proposed airport project.

International Container Terminal Services Inc. chairman Enrique Razon Jr. was also quoted as saying last week he was willing to team up with SMC on the venture.

“I am thinking about it,” Ang said, when asked whether he was ready to form partnerships with interested parties for the airport project.

San Miguel early this month presented the proposed $10-billion modern international airport project to President Benigno Aquino III.

Ang said under the plan, the airport project would be designed to have four runways capable of handling 150 million passengers annually and could accommodate 250 takeoffs and landings per hour.

The Ninoy Aquino International Airport has a capacity of only 40 takeoffs and landings per hour, he said.

Ang said while San Miguel could handle the financing of the project and it was willing to invite other businessmen such as the Sys, Gokongweis and Zobels to participate in the development of the project.

Ang said the airport would be built on the project started by Cyber Bay Corp., which has already reclaimed 157 hectares in Las Piñas and Parañaque.

Ang said as the whole project would require 1,600 hectares of land, San Miguel was in talks with a potential partner that would oversee the reclamation and construction of the project.

San Miguel, which also owns a stake in flag carrier Philippine Airlines, proposed to finance the $10-billion construction cost of the new airport project, including an expressway that will connect the airport to the Makati central business district.

Ang said to enable San Miguel to recover the huge investments, the conglomerate proposed to operate the airport for a long-term period.

He said the proposed airport project would be more modern than the airports in Hong Kong and Singapore, both of which only have two runways.

OPINION: Pangdaigdigang Paliparan ng Pilipinas


After suffering and putting up with one of the world’s worst airports for years, many Netizens were beside themselves with excitement over the two-point proposal of PAL president and San Miguel CEO Ramon Ang to build a second runway at NAIA and a new world-class airport at the Cyber Bay area of Manila Bay.

The reaction is understandable considering the virtual disintegration of NAIA in comparison to airports of neighboring countries as well as the actual environment and services at the airport.

But while Netizens were busy wishing the new airport and the second runway into reality, several people missed the fact that by allowing Ramon Ang and San Miguel Corp. to make a presentation to the President and the Cabinet, Malacañang, particularly the President, may well be saying or showing that they are open for business and that the President welcomes professional advice and serious proposals outside of his Cabinet and best buddies.

It can also be considered as Presidential action to reduce red tape and legal paranoia that have so plagued his administration from day one. As the older members of media have continuously pointed out, the P-Noy administration has an overload of lawyers and not enough doers.

Considering the widespread and positive feedback that the presentation garnered from social and traditional media, the President should ride the wave and invite more mavericks, doers and even “critics” to the palace or some neutral forum where he can pick people’s brains, harvest fresh ideas, or anoint doers to get on with their program.

While P-Noy may carry the burden of leadership he should also consider and remember that all of the great leaders, big businessmen, even visionaries in history as well as in the Philippines never did it alone.

Many of them were full pledged ENABLERS who found people like Ramon Ang and simply supported an idea or a concept whose time had come, or was the answer to a common problem.

In an era where “innovation” is the buzzword, we need to remember that it is not usually the original idea that worked, brought fame, or made millions. In many cases, the man or the leader who recognized the potential or took advantage of it often got the credit and the honor.

In the case of the RSA proposals, neither P-Noy nor RSA or even the Filipino people will benefit or get any honor unless we enable each other to do our part, which takes me to the next point. In case no one noticed, the development of the Cebu/Mactan International Airport fell in the lap of an India-based outfit.

Then the government recently announced that the Palawan airport development project went to a South Korean company.

At the rate the DOTC officials have been responding to Ang’s proposal, it would seem like our one big chance of having a world-class airport built by Filipinos might slip by and end up with foreigners once again, simply on the merit of Jurassic rules and “cheapest gets the project.”

Ever since the P-Noy administration took over, people have talked about being proud of the Philippines, about promoting the Philippines. So far the only thing we can really consider a joint effort of all Filipinos, that is a certified success, is our “It’s More Fun in The Philippines” tourism campaign.

The anti-corruption campaign remains an acoustic war full of threats but no prisoners. But now we actually have a worthy challenge both for government and the private sector.

Here we have a chance to change the rules, rewrite our history of divisiveness and crab mentality, and actually attempt what has been commonplace in the private sector.

Anyone who thinks the new airport can’t be done is either blind or been living underground for the last few years. The Mall of Asia was built by a Filipino company. The Arena followed right after.

Just last Wednesday I drove around the spectacular stadium of the Iglesia Ni Cristo in Bulacan, which reminded me of a super stadium in the United States. The INC stadium is HUGE, beautiful and from the outside clearly world-class.

So why can’t Filipinos, why can’t a world class Filipino company that is San Miguel Corp. build the airport we can be proud of? The fact of the matter is “Anything can be what we want it to be, if we want it hard enough.”

The problem is we have allowed the naysayers, our competitive spirits, and jealousy to get out of control, to the point of hurting all of us, not just our enemies or competitors.

Every modern day leadership guru or billionaire teaches us that our passion and our idea will only work and succeed when we share it with others. What we must first learn to share is a vision and our individual ability to think big and build big.

It is understandable that government officials are limited or fenced in by their reality and legalities, but that is also why government needs to combine and cooperate with private sector, not just stand on the sidelines or stay within the box.

My mentors have taught me that it is a lot easier to make or find P10 million than P1 million. People will willingly partner, fund or lend money to a great new idea, than to an old one with small returns.

The truth of the matter, although many of them won’t admit it, is that many of the so-called rival corporations and business leaders share or partition projects from time to time.

The only reason things get rough is when the project is too small or there is very little meat on the bone. Building what could be the Pangdaigdigang Paliparan ng Pilipinas (PPP) will be so huge it could be a construction fiesta for many corporations in the Philippines.

The next thing “would-be doers” need to learn is to see the problem and come up with the solution.

Many people throw their hands up the minute they see the problem because they don’t know the answer. What I’ve learned is someone else usually has the answer or is the solution.

The Philippine government had a problem called NAIA and is tied up in lots of bureaucracy. San Miguel Corp. has boldly stepped up to the plate and pitched.

Do we go for a home run or do we sit and watch some foreign company take over yet again?  “Puso” and “Bayanihan” are not just words — they are Filipino.

Source: CTALK by Cito Beltran, Philippine Star

DOTC Open to JICA Plan to Build Airport in Sangley

The Department of Transportation and Communications will consider a proposal to build a $10-billion international airport in a former US naval base in Sangley Point, Cavite as part of a “dream” infrastructure plan, Transportation Secretary Joseph Abaya said.

Abaya said in a recent interview that the Sangley airport project, which would require about 2,000 hectares of reclaimed land and support four runways, was ready to be presented to the board of the National Economic Development Authority, chaired by President Aquino.

The Sangley airport proposal was prepared by the Japan International Cooperation Agency, which included the massive alternative air gateway as part of a Metro Manila transportation “dream plan” aimed at easing congestion in the capital district through various mass transportation solutions.

“The dream plan is about to go to the Neda board,” Abaya said. “Jica needs Neda approval on their dream plan before they conduct the FS [feasibility studies].”

The Sangley airport proposal and that of San Miguel Corp. are aimed at providing alternative sites to Manila’s Ninoy Aquino International Airport, which has been suffering from congestion issues partly due to limitations from its single primary runway.

Abaya said the proposed airport in Sangley was similar in size to the 1,600 hectares San Miguel would need to reclaim for its airport project near the CyberBay Corp. reclamation project in Manila Bay.

Abaya said JICA’s airport project was estimated to cost “in the same ballpark” as the $10-billion airport proposal of San Miguel, which partly owns flag carrier Philippine Airlines.

While acknowledging that a new airport serving Metro Manila would not be completed by the time Mr. Aquino steps down in mid-2016, Abaya said the government was keen on laying the groundwork like starting land acquisition and reclamation activities within the next two years.

“We are hoping to start that and show we are committed to the project,” Abaya said. He said the government would likely enlist the private sector’s support for an airport project of this scale via an open bidding process.

San Miguel president Ramon S. Ang earlier said that an open bidding was acceptable should the government choose San Miguel’s proposal.

Ang also said he was keen on partnering with other local conglomerates like Ayala Corp., Henry Sy’s SM Investments and the Gokongwei Group’s JG Summit Holdings.

Source: Miguel R. Camus, Philippine Daily Inquirer