Incheon Airport Exports K-Airport to Indonesia!

Can you guess which airport ranked 1st in Airport Service Quality (ASQ) for 12 years in a row among 1,800 international airports around the world? If you guessed Incheon Airport, you’d be 100% correct! 😊 Incheon Airport, which ensured global competitiveness since Day 1, takes the lead in promoting its operational airport knowhow across the world.

Incheon Airport has garnered a lot of attention recently with another great achievement. It won an operation and development project for Hang Nadim International Airport (Batam Airport) in Batam, Indonesia.

This project is the largest that Incheon Airport has won in its history after fierce competition with other famous international airports. Let’s take a look at information about Batam and what this development project means!

Where is Batam, Indonesia?

Batam, Indonesia is famous as a resort city endowed with spectacular natural environment and tourism infrastructure with the third largest number of tourists in Indonesia, following Bali and Jarkata. As of 2019, 2 million international tourists visited Batam, including 80 thousand Korean tourists.

Furthermore, it is the fastest growing island among Indonesia’s islands.

In 2019, construction began for a 7-km bridge that connects Batam Island and Bintan Island, which is adjacent to Singapore. This will be the longest bridge in the world, and will reduce logistics costs and greatly contribute to tourism.

Batam was designated Indonesia’s first free economic zone in 2009 for its geographical advantage with Singapore. A thousand companies in 22 industrial clusters are currently operating in this region. International investments in the past five years have sharply increased, and it is highlighted as an air cargo market with great growth potential.

Won the project after fierce competition!

Batam is highlighted as a city with great potential in logistics and tourism! In an international bid ordered by the Batam Indonesia Free Zone Authority (BI FZA), you’d be right to guess that the competition to win the rights to develop and operate Batam Airport was very fierce.

Incheon Airport competed with various prospective contractors, such as Switzerland’s Zurich Airport, France’s Egis and India’s GMR Group, and won the project to operate and develop Batam Airport. To help the airport to win a project to operate and develop an overseas airport for the first time in Korea, various government bodies of Korea, including the Ministry of Land, Transport and Maritime Affairs, Ministry of Economy and Finance, and Ministry of Foreign Affairs, also provided full support during this process.

Incheon Airport has conducted 30 projects in 15 countries. However, this project award is significant as it is the first one to obtain the rights to not just develop but also operate an airport.

Incheon Airport stepping up to build a terminal in Batam Airport

The awardee Incheon Airport’s consortium has a role to upgrade the current passenger terminal, build Terminal 2 by 2024, and turn Batam Airport into a competitive region with Indonesia’s Angkasa Pura 1 (AP1) and Wijaya Karya (WIKA). It is also in charge of operating Batam Airport for the next 25 years. Batam Airport’s annual passenger capacity is expected to increase from 5 million to 25 million by 2046, when an expansion project in 3 phases is finalized.

This project spanning 25 years from this year to 2045 is worth KRW 600 billion. As airport infrastructure project awards are slow around the world due to COVID-19, this achievement reaffirms the presence of Incheon Airport in project scale and international competitiveness.

Incheon Airport hopes that this project award serves as an opportunity to shift its profit structure, which has been oriented towards rent from commercial facilities, in a situation where the industry finds it difficult to grow due to COVID-19.

In addition, the *Airport Common User System (AirCUS) independently developed by Incheon Airport in collaboration with small companies is exported to Batam Airport. It is painting a big picture of promoting the excellence of Korean-style airport (K-airport) around the world by partnering with Korean companies to enter airport operations and key construction areas.

In connection with the Departure Control System (DCS) established by the International Air Transport Association (IATA), the Airport-Integrated Resources Common Use System (AIRCUS), an international standard common use system for passenger check-in and boarding, is a next-generation common use system developed by Incheon International Airport (IIA) based on CUPPS TS V1.03, V1.04.

Today, we have looked at Incheon Airport’s project award to operate and develop Indonesia’s Batam Airport. Here’s to hoping that Incheon Airport, which has been successful so far, proves the excellence of K-airport once again with this project award 😊

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