Mangalore-Mangalore airport development may give wing to private players

A. J. Vinayak -Business Line
Besides working on a second runway, the AAI has earmarked land at the Mangalore airport for a business park, a hotel and convention centre and cold storages.
THE EXPANSION plans of PSUs and IT companies, as well as the rapid growth of Mangalore city, will speed up the commercial development of the Mangalore airport.
Opportunities are likely to soar for private players in the commercial development of Mangalore airport — one of the important non-metro facilities.
Such factors as the proposed investment by Oil and Natural Gas Corporation Ltd in the Mangalore SEZ (the Special Economic Zone is close to the airport) of over Rs 45,000 crore, the plans of some information technology (IT) companies to set up and/or expand their units in Mangalore, and the proposed international flight operations from Mangalore are all likely to lead to the commercial development of Mangalore airport, and open up opportunities for private players.
The airport — which is strategically positioned vis-à-vis other domestic facilities — can be an excellent hub for domestic, international and cargo traffic. It has been attracting quite a bit of domestic traffic the past few years. The passenger movement at the airport stood at 2.84 lakh people in 2005-06 against 2.68 lakh in 2004-05, registering a growth of 6 per cent.
RISING PASSENGER TRAFFIC
The Airports Authority of India (AAI) expects to handle 3.55 lakh passengers by 2009-10 and 4.31 lakh passengers by 2013-14. According to AAI, the number of aircraft movements is likely to be increased to 5,154 during 2009-10 and 6,265 in 2013-14, from 3,650 in 2005-06.
Nearly 30 per cent of the traffic from the Mangalore airport is bound for international destinations. Most passengers from Dakshina Kannada and Udupi districts of Karnataka, and from northern Kerala prefer this airport. At present, passengers bound for West Asia from these regions have to fly via Mumbai.
To meet the emerging demands of both domestic and international traffic, the AAI has initiated various measures, including the construction of a second runway. This runway, which can handle bigger aircraft is 2,450 metre long and 45 metre wide, and lies south-east to the existing runway.
NEW TERMINAL
Adjacent to the new runway an integrated passenger terminal is proposed and would its commercial development should benefit the private sector. The airport is 22 km away from Mangalore. The proposed second terminal near the new runway will bring it closer by 4 km, and the land proposed for commercial development is strategically located along the main approach road of the new runway.
Sources in AAI told Business Line that private players need to look at various activities related to the commercial development of land at the Mangalore airport. Of the 345 acres at the airport, the AAI has earmarked 20.85 acres for commercial development. Around six acres are available for the development of a business park in the airport premises.
AAI sources said that global logistics companies, trade and industry groups and pharmaceutical companies could look at occupying plots in the business park.
Another area is the development of hotel and convention centre. Now a passenger has to travel to Mangalore city, if he/she wants to stay in a good hotel. There is no convention centre near the airport for the business traveller. Considering this, the AAI has earmarked 7.38 acres for the development of a hotel and a convention centre.
At a time when IT companies are looking at Tier-II cities such as Mangalore for investments, a hotel and a convention centre near the airport will be of immense help to this section of travellers.
EXPORT OF PERISHABLES
Export of perishables such as jasmine and vegetables to West Asia is likely to get a boost once international flights start to operate from the Mangalore airport.
Floriculture is growing in Dakshina Kannada and Udupi districts, and many small farmers have taken up cultivation of jasmine. Apart from places like Mumbai, jasmine is in good demand in West Asia.
To provide an opportunity for the exporters of perishable goods, the AAI has earmarked one acre for the development of cold storages.
Apart from this, provision has also been made for the construction of a petrol pump on 1.38 acres. Sources said that tenders would be called soon for the commercial development of the airport.
The rapid development of Mangalore city is likely to give a boost to the commercial development of the airport.