The Netherlands Enterprise Agency (RVO) Airport Development Brazil - - PowerPoint PPT Presentation
The Netherlands Enterprise Agency (RVO) Airport Development Brazil 18 February 2020 Agenda Welcome Nico Smid / RVO Opportunities in Airport Development & Infrastructure Brazil Marcelo Cantor / NAG Brazil NEW MARKET BUSINESS
Airport Development Brazil – 18 February 2020
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Welcome Nico Smid / RVO “NEW MARKET” BUSINESS EXPERIENCE IN AIRPORT DEVELOPMENT Ben Hasselman / NACO Discussion on Next Steps Frank Jansen / NAG Network Drinks RVO, a Short Introduction Nico Smid / RVO Fact Finding Mission Jörgen Leeuwestein / Embassy Brasilia Opportunities in Airport Development & Infrastructure Brazil Marcelo Cantor / NAG Brazil
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What is your name?
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What company do you work for?
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Could you descripe your core business in 1 sentence?
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Are you already active in Brazil? Yes/no
https://youtu.be/gxWkwh7Nwj0
Brazil is a continental-sized country, the 5th largest country in the world having the 6th largest population. Liberalization of domestic air fares since 2001 has arguably been considered as the linchpin of the increase in domestic flights from 31 million passengers transported in that year to 93.6 million passengers in 2018
As result of an “Open Skies” policy that has guided the negotiation of over 70 air service agreements since 2006, passengers on international flights grew from 10.8 million in 2006 to 24.1 million in 2018, according to the National Civil Aviation Agency (ANAC).
Airport concession is part of a broader policy that seeks to increase the supply of air transportation services in Brazil. By auctioning in one and the same "combo" large and small airports, the government sought to ensure investments and good level of service for minors. With this, he believes that airlines will be interested in flying to those destinations.
In the same strategy is the new law that allows the presence of up to 100% of foreign capital in Brazilian airlines. The Spanish Globalia, owner of AirEuropa, was the first company authorized to operate in this way. The government continues to attract airline companies to
increase competition, which may result in lower prices and better quality of services.
Brazil has great potential growth, particularly in terms of domestic connectivity and diversified direct international connections. In 2017, Brazil had 0,46 air trips per capita, while the OECD members had 1,71 (source: World Bank). 4th Busiest Domestic Route in the World: São Paulo/Congonhas (CGH) – Rio de Janeiro/Santos Dumont (SDU), with more than 39,000 flights per year (source: Official Aviation Guide – OAG).
There have been several governmental efforts as deregulation and taxation reduction in the sector toward the liberalization of the aviation market, such as: No restriction for foreign investments in Brazilian airlines; Deregulation of Passenger Baggage Allowance
The increase of Duty-Free allowance for international passengers arriving - from 500 to 1,000 USD. Hence, boosting the airports’ revenue generation; and The reduction of International Boarding fee by 18.00 USD.
Investments in airport infrastructure are key to meet the future air travel demands. Since 2011, Brazil has been granting some of Brazil’s major hubs such as São Paulo GRU Airport/Guarulhos, Brasília International Airport, and Rio de Janeiro Galeão Airport, along with 19 other important Brazilian airports.
From 2011 to 2018, a total of USD 3,86 billion was invested into the first 10 privately-managed airports. Overall, USD 9,14 billion is expected to be invested by the private sector during the course
Brazilian airline market in the decades to come.
From the 22 airports under private management, we highlight potential business:
Fortaleza CE Florianópolis SC Porto Alegre RS Recife PE Guarulhos Airport SP Congonhas SP Confins Belo Horizonte MG Brasilia Airport DF
Developers of smart solutions to enhance passenger experience and perception in ground Automated systems with proven methods to reduce passenger boarding process time Technologies to enhance cyber-security Biometrics IP based communication (software & hardware) Blockchain Cooperation Airport Assistance Apps
Voice Recognition & Face recognition systems Known Traveler Digital Identity Interacting Systems to improve and facilitate passengers during ground routines. Control and management tools for aircraft in patio / taxing. Drug detection systems Environmental friendly Bird control Systems for simultaneously use of multiple runways
Investments in airport infrastructure are key to meet the future air travel demands. In 2020 another 22 airports will be granted to the private sector, including those in state capitals such as Curitiba, Manaus, and Goiânia. Airports like São Paulo/Congonhas and Rio de Janeiro/Santos Dumont are expected to be auctioned in 2022, totaling to other 19 airports.
Overall, USD 9,14 billion is expected to be invested by the private sector during the course of the airport concession program, fostering the growth of the Brazilian market in the decades to come.
The 6th round
concessions is targeted for expansion, maintenance and operation of 22 airports, distributed in three blocks, to be granted by end of 2020. The concession of these 22 terminals is in line with the purposes of the National Privatization Plan (PND), the General Grant Plan (PGO) and the National Civil Aviation Policy (PNAC).
Companies willing to apply to participate in one or more of the auctions for ‘round 6’ blocks shall contact ANAC to follow the routine of registration and receive the requirements and guidelines of the PND, PGO and PNAC programs.
The 7th round of concessions is planned for 2022 with 19 airports, it includes the airports of São Paulo Congonhas and Rio de Janeiro Santos Dumont, the “Jewels of the Crown” of the Brazilian airports, as stated by ANAC.
[BRAZIL CASE] Ben Hasselman – former Director Business Development NACO
“1-stop airport development shop”
Independent consultant on full airport development life cycle More than 70 years of international experience Track record: over 600 airports worldwide Team of over 200 dedicated airport professionals Unique centralized and integrated knowledge hub in The Netherlands NACO is seeking long-lasting relationships with our clients.
Professional Background:
Since 1980 – employed by NACO as:
Airport Architect; Airport Master Planner
Managing Director; Director Business Development Retired 2016
Expert Witness / Testifying Consulting in Arbitration Brazil involvement since: 2010
PREPARATIONS
SEQUENCE OF EVENTS ACHIEVEMENTS / SPIN-OFF LESSONS LEARNED
“Normal” Business Development 2010 Why interested in Brazil?:
INTENTION/VISION: Brazil could become one of NACO’s (and DHV) “home countries”
RESEARCH:
and InterVISTAS:
Brazil FIRST CONCLUSIONS:
→ how to manage?
→ no Portuguese speaking staff in NACO!
→ a challenge!
1st visit - April 2010 (São Paulo/Rio de Janeiro/Brasilia)
Eurlings (Minister of Transport):
mission; Delegation from Curaçao (Aport); Contact Dutch architect
1 Seminar organised by Ministry 2 Appointments made by Transfer (Portuguese speaking staff)
2nd visit - November 2010 (São Paulo/Rio de Janeiro/Brasilia)
STRENGTH WEAKNESSES NACO
Brazil
representative/agent/staff
OPPORTUNITIES THREATS
investor
expected
3rd visit - April 2011 (São Paulo)
All preferred parties have completed their teams! August 2011 → Request for meeting in NL from UTC/CONSTRAN December 2011 → Proposal for Bid Assistance to UTC/CONSTRAN 4th visit – January 2012 (São Paulo)
February 2012 the Viracopos Brazil Airports concession was signed between:
Egis Airport Operation (10%)
minimum price proposed
the backing of the state and will operate the airport single-handedly
5th visit – March 2012 (São Paulo)
6th visit – August 2012 (São Paulo/Curitiba) 7th visit – April 2013 (Rio de Janeiro)
December 2013 Minister Moreira Franco of Brazil’s SAC (Civil Aviation Secretariat) and the Dutch Minister of Infrastructure and Environment, Wilma Mansveld signed a MOU in the presence of CEO’s of KLM, Schiphol, NLR, TU Delft and NACO The MOU is a general intention to collaborate in the field of civil aviation
June 2014 – Opening (contractual) of new terminal 8th visit – September 2014 (São Paulo) – Visit construction activities in full swing 9th visit – August 2016 (São Paulo) – Visit of completed Terminal
Master Plan for Viracopos Int’l Airport
Design for New Terminal Bldg @ Viracopos Int’l Airport
◼ Director InterVISTAS, stationed in São Paulo, leads activities in Brazil:
◼ Director has experience with Odebrecht Transport, Dufry, and VARIG ◼ Focused on marketing activity to: ◼ Airlines / Airport Operators / Manufacturers / The Financial Community and ◼ Construction and Engineering Firms engaged in Airport Development
◼ Projects completed in Brazil:
◼ Business plan review for CCR’s acquisition of Andrade Gutierrez and Camargo
Correa airport stakes
◼ Non-aeronautical revenue benchmarking study for Odebrecht Transport and ◼ Commercial plan for Viracopos
Preparation
Local
tax/price/language)
57 Part of Ministry of Economic Affairs & Climate Activities are commissioned by various ministries, European Union & Regional Governments The Netherlands Enterprise Agency stimulates entrepreneurs in sustainable, agricultural, innovative and international business. It aims to improve opportunities for entrepreneurs, strengthen their position and help them realise their international ambitions with funding, networking, know-how and compliance with laws and regulations.
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Embassy – Brasilia
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Consulate General – Sao Paulo & Rio de Janeiro
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NBSO – Belo Horizonte & Porto Alegre > Business Developers RVO – Den Haag
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RVO – The Hague > Business Development Coach Latin America
> Research on opportunities for Dutch companies > Seminars on opportunities & how to do business > Incoming missions (trade, influentials, journalists) > Outgoing (trade) missions > Facilitate the participation in trade fairs through The Netherlands Pavilions > Matchmaking activities & company visits > Invite Dutch experts as speakers to conferences > G2G and K2K activities > Economic diplomacy > Support companies in applying for and implementation of RVO instruments
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List of potential business partners in 60 countries
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In cooperation with foreign network of embassies, consulates and Netherlands Business Support Offices (NBSOs)
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Clients, agents, distributors, production partners or franchisees
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€ 200 without personal introduction or € 500 including personal introduction
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Coaching vouchers Individual guidance on strategic action plan Market Entry vouchers Individual guidance on market entry Mission vouchers Participation in a trade mission or collective exhibition submission Vouchers for Individual Trade Fair Participation Individual participation in trade show Knowledge vouchers Fiscal or legal support
Results up to 2016
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Demonstration project: Demonstrate that technology, capital goods or services work, are effective and cost-effective in the local context
> Subsidy Max. €200,000, 50% of the costs
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Feasibility studies: Demonstrate the technical and financial feasibility of Dutch products/services to potential foreign customers
> Subsidy Max. €100,000, 50% of the costs
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Investment Preparation Studies
> Subsidy Max. €100,000, 50% of the costs
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Import, Export & Investment
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provides loans, guarantees and export financing
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Dutch companies wanting to invest in or export to foreign markets
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up to € 15 million in financial support for each project
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The Netherlands Pavilion at Strategic Trade Fairs
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SME Lounge for ‘New’ trade shows
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Netwerk lounge (not individual stands) & matchmaking activities
> Max €20,000, 60% of the costs
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The Netherlands Branding
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Branch / sector organisation should apply
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Min 10 participating companies
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Long-term Public Private Partnership
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Entering / positioning of cluster of companies and knowledge institutes in foreign market
> Cluster: coordination, missions, seminars, promotion materials > RVO: Addressing trade barriers / knowledge gaps, networking, promoting sector economic diplomacy, missions, liaison, G2G & K2K, Te Netherlands Branding, seminars
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Funding for activities: e.g. seminars, missions, K2K, G2G, liaison, marketing
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www.rvo.nl/brazilie
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www.ondernemersplein.nl
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www.internationaalondernemen.nl
Nico Smid
The Hague, February 18th 2020
Activities of the diplomatic network
and May (Schiphol, KLM, VanderLande, NLR and NACO).
Executive programs in The Netherlands and several technical visits of Dutch companies to Brazil.
NACO, NLR, SACO and To70. Three cities São Paulo (3 airports visits and ITA), Brasília (airport visit, seminar & workshop) and Rio de Janeiro (airport visit and DECEA).
MoU Civil Aviation
Minister of the Secretariat of Civil Aviation, Moreira Franco.
Minister of Infrastructure Marcelo Sampaio (5 years). The MoU is an important “umbrella” instrument, especially for the Brazilian government. “The Participants (governments) will support interaction between the private sector and state owned companies of the Netherlands and Brazil in order to stimulate mutual investment and other forms of economic cooperation...”
MoU Civil Aviation Themes of cooperation: a) Airport Planning and Development b) Safety and Security Management c) Innovation and Sustainability d) Air Navigation e) Logistics and Air cargo f) Regulation and Public policies g) Training & Education h) Research and development i) Any other subjects mutually decided upon
MoU Civil Aviation Main issues addressed during the signing ceremony:
yearly bilateral meeting as established in the MoU.
Netherlands (Oct/Nov).
activities.
Why now?
U$195 billion over the next 10 years), tax and labor reforms; European Union-Mercosur trade agreement; After years of recession, economic growth 2020: 2,0% and 2021: 3,0% (Rabobank).
Brazilian airlines; Bilateral Air Services Agreements (also with The Netherlands); Deregulation of baggage allowance; Reduction of international boarding fee; Increase Duty-Free allowance.
Tarcísio Gomes de Freitas: “All that can be handover to the private sector will be auctioned.”
Guarulhos – São Paulo
Why now?
20 years with an estimated growth of € 79 billion per year and more than 1.4 million jobs.
be invested.
improved the conditions for the next auctions.
are considered references.
For who?
pavements
Guarulhos – São Paulo
By whom?
mission (one month needed) and, after approval, RVO will provide the budget (one month needed).
Brasilia.
mission and provide logistical support.
to organize video conferences for Dutch companies for further explanation about the airport concessions.
Guarulhos – São Paulo
The proposal
Climate and Business Opportunities and Risks in Brazil”
Guarulhos – São Paulo
Guarulhos – São Paulo
Perspectives”
Guarulhos – São Paulo
and future role and ambitions”
Industries (CNI): “Economic Scenario and Business Climate in Brazil”
Guarulhos – São Paulo
Infrastructure (TBC) followed by:
Aviation (SAC): “The Investment Partnership Program (PPI) - Airports”
Aviation (ANAC) and seminar “Innovative and Sustainable Airport Management: a Dutch Perspective”
Guarulhos – São Paulo