The Incheon International Airport Corp. (IIAC), operator of Korea’s main air gateway, will be in charge of upgrading and operating Hang Nadim Batam Airport in Indonesia upon winning the procurement in a consortium with local companies.
The IIAC announced on Sunday that its consortium with Indonesia’s state-run airport operator PT Angkasa Pura 1 and local constructor PT Wijaya Karya Tbk has been selected as the final bidder for the Hang Nadim Batam Airport expansion and operation project worth 600 billion won ($530 million), beating rivals like Zurich Airport of Switzerland, EGIS of France and GMR of India.
The final contract for the project is likely to be signed next month.
The IIAC-backed consortium will remodel the existing passenger terminal at Batam Airport and construct a second terminal by 2024. IIAC will operate the airport for 25 years, the airport operator added.
The IIAC has been consigned with consulting services for airport projects in 15 countries including Poland, Kuwait and Turkey.
The project, which is the largest airport expansion and operation deal ever won by the IIAC, will help diversify its profit model, currently mostly hinging on international air traffic and duty-free shops. It will also serve as a bridge for economic cooperation between Korea and Indonesia in line with the Korean government’s New Southern Policy.
Batam Airport is located on Batam Island, the third most visited tourist destination in Indonesia after Bali and Jakarta. It has a huge potential for growth in the air cargo market, attracting approximately $2.5 billion in overseas investment over the past five years.
Source: Civil Aviation Authority – Qatar