Business Case for the SunShine CoaSt airport Master Plan

More documents

Recommendations

Info

Business Case for the Sunshine Coast Airport n Master Plan (November 2009) thus providing direct access to the Sunshine Coast from growing Asian and trans-Tasman tourism hubs. In addition, implementation of the Master Plan will dramatically reduce travel times for passengers and slash unnecessary commutes to and from Brisbane. Reducing the already heavy traffic congestion en route. Reduce safety and noise concerns experienced by the local community, reduce the impact of cross-winds and other adverse weather conditions and increase SCA’s interconnectivity with other airports, making it a more attractive scheduling destination for airlines and freight companies. This increased activity and productivity will stimulate employment and economic flow-on affects. The total cost of the Master Plan strategy, including the construction of a new east-west runway 13/31, a new terminal, additional parking spaces, new aircraft apron and general aviation facilities including supporting road infrastructure, is estimated to be $435.6 million. These costs can be roughly broken down to include: ■ ■ $122 million for runway 13/31; ■ ■ $159.6 million for associated Regular Public Transport (RPT) projects; ■ ■ $142.8 million for other Master Plan projects, including a new terminal, car park and commercial precincts; and ■ ■ $11.2 million for planning and land acquisitions. This equates to a total present value capital cost (in 2010 terms) of approximately $176 million, of which only $28 million is expected to be recouped through additional passenger charges. While some of the remaining Master Plan costs will be recovered through commercial arrangements at the terminal, car park and other airport precincts, these revenues are still collectively insufficient to fund the cost of the new east-west 13/31 runway development, leaving a total present value deficit of $109 million. A cost benefit analysis of the Master Plan undertaken by PricewaterhouseCoopers concludes that, based on a central demand scenario, with all runway and RPT projects included as well as all new commercial precincts, the project offers a Benefit Cost Ratio (BCR) of 3.52, with Net Present Value (NPV) net benefits of $645 million and an internal rate of return (economic benefits) of 17.72 per cent. The analysis finds, following examination of a range of scenarios, the BCR is greater than one at all times, indicating there is value in the project which is not reflected in a purely financial analysis. Put simply, analysis of the Sunshine Coast Airport’s Master Plan shows that the implementation of the Plan will return substantial social and economic benefits for the local and national economy. The analysis, however, shows that the financial returns are insufficient to attract solely private investment because the returns are dispersed across the broader economy and not limited to the airport’s operator. Analysis also shows that the Master Plan clearly aligns with many of the stated objectives of the Local, State and Commonwealth governments. The SCRC has already committed over $50 million to implement the Master Plan. Nevertheless, it is not in a position to fully fund all elements of the Plan to realise SCA’s full social and economic potential. The Council, therefore, requests that the Commonwealth Government invest $122 million to allow the construction of the new east-west runway 13/31 – thereby providing the necessary catalyst to unleash the region’s potential to drive long-term economic prosperity which will benefit not only the local community but all Australians. 6
Business Case for the Sunshine Coast Airport n Master Plan (November 2009) 02 Introduction to the Sunshine Coast and its airport Located to the north of Brisbane, Queensland’s Sunshine Coast is home to more than 300,000 residents and is one of Australia’s premier tourist destinations, attracting approximately 3 million 1 tourists each year. This compares to Queensland’s tourist numbers of 18 million 2 and Australian tourist numbers of 75 million 3 . Like many parts of south-east Queensland, the Sunshine Coast has experienced rapid growth in recent years, with this expected to continue in the short to medium-term future. In fact, it is predicted by 2031 the size of the Sunshine Coast will grow to more than 500,000 people – lured by the relaxed yet sophisticated lifestyle the region has to offer. In addition to tourism, the local economy currently relies on the retail, construction and professional services industries which contributed approximately $8.9 billion to the national economy in 2007/08, or 4.9 per cent of Queensland’s total economy 4 . As the Sunshine Coast continues to grow and the need to diversify and strengthen the economic base becomes paramount; so, too, does the need to invest in social and economic infrastructure. 02.1 The airport Sunshine Coast Airport (SCA) is located at Marcoola Beach, midway between Caloundra and Noosa. It is conveniently situated in the geographical centre of the coast and adjoins the principal activity centre of Maroochydore. SCA is approximately 110 kilometres north of Queensland’s capital city of Brisbane or just one hour’s drive from Brisbane’s booming northern suburbs. Maps of the region are shown in the diagrams below. The airport is owned, operated and managed by the Sunshine Coast Regional Council (SCRC). The airport currently services an area stretching from Gympie in the north to the outer-northern suburbs of Brisbane to the south. The airport, provides regular services to Sydney and Melbourne, contributes more than $475 million to the regional economy each year, directly employs more than 600 people and provides for more than 4,400 direct and indirect jobs. It operates 24 hours a day, handles approximately 87,000 aircraft movements and around 1 million passengers per annum. Tourism and aviation consultancy firm Tourism Futures International (TFI) forecast passenger levels to grow on average by between 7 and 14 per cent per annum over the next five years, with 1.7 million passengers expected to pass through the airport in 2019/20. This figure is expected to grow to between 2.1 million and 2.8 million by 2029/30. The full report conducted by TFI is attached as Appendix C. Sunshine Coast Airport Figure 01 Sunshine Coast Airport within Australia Figure 02 Sunshine Coast Airport within the greater South-East Queensland region 1 National Visitor Survey – Tourism Research Australia for year ended June 2009 2 National Visitor Survey – Tourism Research Australia for year ended June 2009 3 Sunshine Coast 2009 Economic Pulse – Sunshine Coast Regional Council 2009 4 Sunshine Coast 2009 Economic Pulse – Sunshine Coast Regional Council 2009 7
Page 1: Business Case for the Sunshine Coas
Page 4 and 5: Business Case for the Sunshine Coas
Page 22 and 23: 0 60 120 240 360 480 600 Meters Whi
Page 46 and 47: Sunshine Coast Airport Master Plan
Page 48 and 49: Acknowledgement This Master Plan ha
Page 50 and 51: 1 Executive Summary 1.1 Introductio
Page 52 and 53: 1.6 Peak Stand Demand FIGURE 1-3 BU
Page 54 and 55: TABLE 1-2 PARKING DEMAND FORECAST Y
Page 56 and 57:
1.12 2020 Master Plan A layout show
Page 58 and 59:
1 Introduction 1.1 Sunshine Coast A
Page 60 and 61:
723 submissions were received from
Page 62 and 63:
2 Aviation Demand Forecast 2.1 Hist
Page 64 and 65:
FIGURE 2-3 HISTORIC AND FORECAST AN
Page 66 and 67:
FIGURE 2-6 HISTORIC AND FORECAST AN
Page 68 and 69:
2.5 Peak Stand Demand Peak stand de
Page 70 and 71:
FIGURE 3-1 RPT APRON LAYOUT 3.3.2 G
Page 72 and 73:
4 Passenger Terminal 4.1 Terminal T
Page 74 and 75:
FIGURE 4-1 2020 TERMINAL LAYOUT CON
Page 76 and 77:
access road is constructed the airp
Page 78 and 79:
6 Runways 6.1 Existing Facilities S
Page 80 and 81:
The public consultation which accom
Page 82 and 83:
7 Taxiways 7.1 Runway 18/36 Taxiway
Page 84 and 85:
Sunshine Coast Airport has recently
Page 86 and 87:
FIGURE 8-1 AVIATION SUPPORT FACILIT
Page 88 and 89:
9 Master Plan 9.1 2020 Master Plan
Page 90 and 91:
10 Environmental Impacts 10.1 Aircr
Page 92 and 93:
Arrivals, departures and training c
Page 94 and 95:
♦ Figure 10-2 : 2025 New Runway 1
Page 96 and 97:
10.1.8 Flight Path Movement Chart I
Page 98 and 99:
Boronia rosmarinifolia Eucalyptus c
Page 100 and 101:
FIGURE 10-8 OBSTACLE LIMITATION SUR
Page 102 and 103:
Development Commence detailed studi
Page 104 and 105:
Appendices Appendix A - Schedule of
Page 106 and 107:
Date Organisation Position 28-04-05
Page 108 and 109:
Appendix B - SCA Public Participati
Page 110 and 111:
A media relations campaign was also
Page 112 and 113:
appendix b Project Implementation S
Page 114 and 115:
New Runway Project Strategy Documen
Page 116 and 117:
New Runway Project Strategy Glossar
Page 118 and 119:
New Runway Project Strategy Table o
Page 120 and 121:
New Runway Project Strategy Executi
Page 122 and 123:
New Runway Project Strategy Milesto
Page 124 and 125:
New Runway Project Strategy Feasibi
Page 126 and 127:
New Runway Project Strategy Project
Page 128 and 129:
New Runway Project Strategy 1. Intr
Page 130 and 131:
New Runway Project Strategy 2.4.2.
Page 132 and 133:
New Runway Project Strategy obligat
Page 134 and 135:
New Runway Project Strategy 2.10. F
Page 136 and 137:
New Runway Project Strategy 3. New
Page 138 and 139:
New Runway Project Strategy 3.6. As
Page 140 and 141:
New Runway Project Strategy 3.9.1.
Page 142 and 143:
New Runway Project Strategy 4. Stak
Page 144 and 145:
New Runway Project Strategy 5. Feas
Page 146 and 147:
New Runway Project Strategy 6. Work
Page 148 and 149:
New Runway Project Strategy 7. Proj
Page 150 and 151:
New Runway Project Strategy 8. Proj
Page 152 and 153:
New Runway Project Strategy Council
Page 154 and 155:
New Runway Project Strategy o New b
Page 156 and 157:
New Runway Project Strategy 9.4. Fo
Page 158 and 159:
New Runway Project Strategy 10.7. R
Page 160 and 161:
New Runway Project Strategy Vol X.0
Page 162 and 163:
New Runway Project Strategy 12. Pro
Page 164 and 165:
New Runway Project Strategy 13.5. R
Page 166 and 167:
New Runway Project Strategy preferr
Page 168 and 169:
Appendix 1 to Sunshine Coast Airpor
Page 170 and 171:
Page 172 and 173:
Page 174 and 175:
Page 176 and 177:
Page 178 and 179:
Sunshine Coast Airport Traffic Fore
Page 180 and 181:
10. Glossary.......................
Page 182 and 183:
2 2. Sunshine Coast Airport Traffic
Page 184 and 185:
4 Table 2.1: Sunshine Coast Airport
Page 186 and 187:
6 2.3 Current Airline Services As a
Page 188 and 189:
8 3. Forecast Approach & Review of
Page 190 and 191:
Australian aviation has not felt th
Page 192 and 193:
In its review of possible strongly
Page 194 and 195:
14 • Qantas Group firm orders red
Page 196 and 197:
16 • Melbourne-Shanghai services
Page 198 and 199:
In the IVS and NVS the ‘Sunshine
Page 200 and 201:
20 • The Sunshine Coast’s labou
Page 202 and 203:
22 5. Forecast Scenarios and Outcom
Page 204 and 205:
24 o New Asian route(s) added leadi
Page 206 and 207:
Figure 5.1 presents the passenger m
Page 208 and 209:
28 6. Busy Hour Analysis 6.1 Review
Page 210 and 211:
30 Seats/Aircraft: Table 6.3: Busy
Page 212 and 213:
32 Table 7.2: Sunshine Coast Gross
Page 214 and 215:
34 8.2 Current Airline Routes and F
Page 216 and 217:
36 9. Attachment 3: Potential Impac
Page 218 and 219:
38 10. Glossary Data Sourced from t
Page 220 and 221:
40 DISCLAIMER The Forecasts describ
Page 222:
Sunshine Coast Airport Airport Mast
Page 227 and 228:
1 Executive Summary
Page 229 and 230:
Executive Summary The types of econ
Page 231 and 232:
2 Background
Page 233 and 234:
Background 2.2 Contract requirement
Page 235 and 236:
Background Sunshine Coast Airport P
Page 237 and 238:
Approach and methodology 3.1 Overvi
Page 239 and 240:
Approach and methodology 3.2 Method
Page 241 and 242:
Page 243 and 244:
Approach and methodology Components
Page 245 and 246:
Approach and methodology Components
Page 247 and 248:
Approach and methodology 3.4.4 Othe
Page 249 and 250:
Page 251 and 252:
Results and discussion 4.1 Overview
Page 253 and 254:
Results and discussion 10,000 Passe
Page 255 and 256:
Results and discussion PV Revenue -
Page 257 and 258:
The NPVs for each of the precincts
Page 259 and 260:
Results and discussion 4.4 Economic
Page 261 and 262:
Results and discussion PV monetised
Page 263 and 264:
Results and discussion Indirect emp
Page 265 and 266:
Results and discussion 4.5 Consolid
Page 267 and 268:
Results and discussion 4.5.1 Result
Page 269 and 270:
Results and discussion The overall
Page 271 and 272:
Results and discussion Economic ind
Page 273 and 274:
Results and discussion Alternative
Page 275 and 276:
5 Conclusions and recommendations
Page 277:
Appendices
Page 280 and 281:
Appendix B Key assumptions NOT FOR
Page 282 and 283:
Appendix D Demand Summary NOT FOR P
Page 284 and 285:
pwc.com.au © 2009 PricewaterhouseC
Page 286 and 287:
0 2.5 5 10 15 20 Kilometers 1 cm =
Page 288 and 289:
appendix f Infrastructure Australia
Page 291 and 292:
INFRASTRUCTURE AUSTRALIA REFORM AND
Page 293 and 294:
ü Build on Australias global compe
Page 295 and 296:
Stage 1: Goal Definition national a
Page 297 and 298:
Stage 1: Goal Definition which is i
Page 299 and 300:
Stage 1: Goal Definition and operat
Page 301 and 302:
Stage 2 and 3: Problem Identificati
Page 303 and 304:
Stage 2 and 3: Problem Identificati
Page 305 and 306:
Stage 4: Problem Analysis Outline t
Page 307 and 308:
Stage 5: Option Generation The Bris
Page 309 and 310:
Stage 5: Option Generation Convenie
Page 311 and 312:
Stage 5: Option Generation vii. inc
Page 313 and 314:
Stage 5: Option Generation charges
Page 315 and 316:
INFRASTRUCTURE AUSTRALIA REFORM AND
Page 317 and 318:
DETAILED APPRAISAL This section set
Page 319 and 320:
Cost Estimation The capital and ope
Page 321 and 322:
A risk assessment should be underta
Page 323 and 324:
Non-Monetised Benefits and Costs Th
Page 325 and 326:
Discounted airfares provided by low
Page 327 and 328:
30m wide runway. SCA is one of four
Page 329 and 330:
SCA is included in the regional pla
Page 331 and 332:
SCRC’s draft economic development
Page 333 and 334:
Key directions to guide the prepara
Page 335 and 336:
It is estimated that the current te
Page 337 and 338:
· $143m for other Master Plan proj
Page 339 and 340:
Operating costs have not been indep
Page 341 and 342:
The number of passenger hours saved
Page 343 and 344:
Airline savings are calculated usin
Page 345 and 346:
Incremental expenditure is calculat
Page 347 and 348:
23 | P a g e KEY ASSUMPTIONS UNDERP
Page 349 and 350:
Appraisal Summary Table 2 MONETISED
Page 351 and 352:
Incremental returns from leased pre
Page 353 and 354:
Savings from avoided out-bound dela
Page 355 and 356:
As noted above, all outputs for the
Page 357 and 358:
6 | P a g e Airline savings from av
Page 359 and 360:
Sensitivity test # Variation Benefi
Page 361 and 362:
Appraisal Summary Table 4 NON-MONET
Page 363 and 364:
Appraisal Summary Table 5 INFORMATI
Page 365 and 366:
DELIVERABILITY ASSESSMENT Criteria
Page 367 and 368:
DELIVERABILITY ASSESSMENT time, as
Page 369:
DELIVERABILITY ASSESSMENT 5.Does th
show all

Business Case for the SunShine CoaSt airport Master Plan

Create successful ePaper yourself

Delete template?

Save as template?