The Hindu Business Line : GMR inks deal to expand Istanbul’s international airport

Ankara (Turkey), March 20 Marking its foray into the international arena, the Bangalore-based GMR Infrastructure along with its consortium partners from Turkey and Malaysia have signed an agreement with the Turkish Defence Ministry to expand the Sabiha Gokcen International airport in Istanbul.

Under the implementation agreement, the consortium partners would put in a minimum investment of €250 million to upgrade the seven-year-old airport by constructing a new integrated domestic and international terminal to handle 10 million passengers a year from the existing 3.5 million passengers.

Sabiha Gokcen airport is located on the Asian side of Istanbul, while the main airport Ataturk International Airport is located on the European side of the city. With the latter airport reaching its saturation level, the country has decided to expand the other airport. The distance between the two airports is about 100 km.

GMR holds 40 per cent stake in the newly formed Istanbul Sabiha Gokcen International Airport, the Turkish infrastructure-major Limak holds 40 per cent and Malaysia Airports Holding Berhad (MAHB) holds the remaining 20 per cent stake. While GMR and Limak would focus on development, financing, corporate relations, commercial strategy and human resources management, MAHB would take care of operations and related issues.

“The consortium will pay €1.93 billion to the Turkish Government over a period of 20 years as part of the concession agreement,” Mr G.B.S. Raju, Chairman (Corporate and International Business) of GMR group, told Business Line in a sponsored trip.

“It is going to be a new experience for us, taking care of the newer areas like baggage handling and cargo activities,” he said.

The consortium is expected to begin work in May and complete the project in 30 months. The mandate includes operations of all terminals, handling of aircraft, baggage and cargo. Ms Ebru Ozdemir of SGIA has said that the aviation sector in Turkey was witnessing a growth of 14 per cent, while Sabiha recorded a growth of 80 per cent since its inception.

Mr Ranjit Murugason, Chief Executive of GMR’s International Business Division, said the project would help the company access to European, African and the Gulf markets. Mr Yetik K. Mert, CEO of SGIA, said the Formula One facility near the airport would be one of the triggers of traffic at the new airport.

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