Airport privatisation services to Japan
(Last updated: 23 Aug 2013)
Trends and opportunities
The market
There are currently 98 airports in Japan, with 28 owned and operated by the national Japanese government. Four are corporatised, with the central government is the sole or major shareholder. Many of these airports operate at a loss under government management and the growing debt places an ongoing burden on the Japanese public.
In 2011, Japan’s Ministry of Land, Infrastructure, Transport and Tourism (MLIT) announced plans to privatise all national airports by 2020, with the first privatisation process to begin via a merger of Itami and Kansai International Airports. The privatisation will incorporate a long-term lease concession for the rights to manage runways, airport terminal buildings and car parking (that are currently separately managed), but not air traffic control, which will continue to be managed by the national government.
The special bill to allow the merger and privatisation of Itami and Kansai International Airports was approved by the Japanese Diet in 2011. New Kansai International Airport (NKIAC), the operator of Itami and Kansai International Airports is now preparing to transfer the management rights of the two airports to the private sector through a 30-50 year concession agreement. Market sounding is expected to be completed by late 2013, with the bid process commencing in 2014. The concession rights are likely to be granted to the successful bidder in 2015, although this timing could.
Sendai Airport is expected to be the first regional airport to be privatised and based on the current Japan Revitalization Strategy roadmap, the bidding process and selection of successful operator will be completed in FY 2014, with the concession commencing in FY 2015. Airports that may be privatised following Sendai include Hiroshima, Takamatsu, and Shizuoka. In preparation for privatisation, many local governments have established study groups to propose recommendations and suggestions to the national government to with a view to ensuring that privatisation will provide benefits to their airports, local communities and regional economies.
Opportunities
With Australia’s significant experience in undertaking airport privatisations, Australian firms are well placed to compete for commercial opportunities generated by the privatisation process in Japan. Opportunities are likely to emerge in the following areas:
- Airport operations and management in Japan through the purchase of concession rights
- Advisory services to both the sell and buy sides (preliminary research, transaction preparations, bid process management, master planning and non-aeronautical management)
- Advisory services to Japanese corporates interested in airport operations and management in international markets
Links and industry contacts
Government, business and trade resources for Japan
Ministry of Land, Infrastructure, Transport and Tourism (MLIT) – www.mlit.go.jp/en/index.html
Ministry of Foreign Affairs (MOFA) – www.mofa.go.jp/index.html
Ministry of Economy, Trade and Industry (METI) – www.meti.go.jp/english/index.html
Japan International Cooperation Agency (JICA) – www.jica.go.jp/english/index.html
Jana Bank for International Cooperation (JBIC) – www.jbic.go.jp/en/
The Overseas Construction Association of Japan, Inc (OCAJI) – www.ocaji.or.jp/en/
Contact details
The Australian Trade Commission – Austrade – is the Australian Government’s trade, investment and education promotion agency.
Through a global network of offices, Austrade assists Australian companies to grow their international business, attracts productive foreign direct investment into Australia and promotes Australia’s education sector internationally.
For more information on how Austrade can assist you, contact us on:
Australia ph: 13 28 78 | Email: info@austrade.gov.au
A list of Austrade offices (in alphabetical order of country) is also available.