Modest beginnings

If SCACH decides Badgerys isn’t worth the risk it leaves Canberra in a difficult position because it then has to seek other private parties willing to invest and take the development on, probably including foreign airport groups. That will certainly put the government’s timetable in jeopardy. It expects work to begin on the new airport by 2016 and first

It expects work to begin on the new airport by 2016 and first flights to be operating in the mid-2020s.

flights to be operating in the mid-2020s. Even if SCACH does take on the task of running two airports, it is a schedule that looks a little ambitious.

In the meantime, Sydney Airport isn’t letting any grass grow under its feet in terms of convincing everyone it can handle growth, despite doubts among many observers who point to rising traffic and worsening congestion. While it was put in motion well before the second airport decision, the airport in late April announced it was now a Category II facility thanks to an upgrade to the instrument landing system (ILS) and installation of new high intensity approach and strobe lights at both ends of its 34L/16R main runway. Authorised aircraft will now be able to land in visibilityconditions down to 350m, compared to 550 to 1,500m previously.

“We’ve made a multi-million dollar investment in works to enhance operations for low visibility conditions such as fog and poor weather,” said the airport’s chief executive Kerrie Mather. “Our new runway lighting system will enable more aircraft to land safely at Sydney Airport in adverse weather conditions, instead of being diverted to other Australian cities. Safety is a key priority for Sydney Airport and we’re pleased that this upgrade will deliver improved safety outcomes. This is also great news for passengers, who will now experience fewer diversions and knock-on delays. ” That’s great but it doesn’t resolve the main issues that have to beovercome to enable Sydney to really progress as an airport, the 80 movement an hour cap and the curfew. Both Qantas and Virgin welcomed the Badgerys decision but with qualification. Virgin agreed there was a need for a second airport but reiterated the use of KSA still had to be maximised through measures such as relaxing the current cap of 80 movements an hour. “For example, we believe that there is scope to relax the hourly flight cap and enable greater flexibility in the curfew shoulder periods between 5am and 6am, and 11pm and midnight,” it said in a statement. Qantas chief executive Alan Joyce said the second airport was a vital piece of economic infrastructure for Australia and Badgerys Creek was clearlythe right site. “Qantas has long supported the building of a second airport at Badgerys Creek, as have a number of detailed studies… the role of second airports has been well-established in several of the world’s major capitals. Sydney is the key gateway for air traffic in-and-out of Australia and the benefits of having two major airports will be felt nationwide. ” He did, however, also add the airline will “continue to work closely with Sydney Airport to maximise the use of this key asset, including through the rollout of the recently approved master plan”.

So what are the obstacles in the path of Badgerys? Quite apart from the wait for a decision from Sydney Airport, they are numerous. Firstly, a new environmental impact study needs to be carried out because the last one, finished in 1999, is now considered out of date. History tells us this will take months. While there is no doubt public opinion in Western Sydney has largely swung in favour of a new airport, the feeling is by no means universal. That means controversy and certainly a measure of protest. As Fairfield Mayor Frank Carbone put it: “They have announced an airport without having any consultation with the community about the impacts it will have. ” He thinks these will be adverse and wants a curfew, saying if that’s good enough for people in the eastern suburbs, it should be good enough for people in the west. He also expressed concern the new facility will be used as a cargo airport as well as a dumping ground for flights arriving in the early morning and late nights, which aren’t able to land at KSA.

Secondly, whoever opts to build and operate Badgerys won’t be doing it with a blindfold on. Prospective investors, including Sydney Airport, will be having serious discussions behind thescenes with their airline customers – not least Qantas and Virgin – to find out exactly what their intentions are. How many domestic services would be transferred to the new facility? What level of interest is there from international customers in putting flights into an airport 50km away from the city centre when Mascot is so convenient? Is this mainly going to be a budget airline operation? Certainly it is believed by most industry insiders that at least in its early years the facility will be more attractive to the likes of Jetstar and Tigerair – and they will want to be paying as little in the way of landing and parking fees as possible. In terms of international services it may also attract flights from the new breed of long-haul low-cost carriers such as Singapore Airlines’ Scoot and Malaysia’s AirAsia X, though once again they will be reluctant to leave the convenience of Mascot if they’re not given a financial carrot as encouragement. As far as cargo is concerned it may also be a tough sell. The big freighters think its great hauling their cargo into KSA, close to Sydney’s surrounding industrial heartland.

They have announced an airport without having any consultation with the community. MAYOR FRANK CARBONE

Thirdly, a key to Badgerys attraction is going to be its transport links. Will the commitment to spend $1. 2bn in the next four years for infrastructure for western Sydney and $2. 9 billion over the next decade, mostly on roads, come to fruition? Will there be a fast rail link from Badgerys to the city? Tony Abbott and Deputy Prime Minister Warren Truss have left that question hovering in the air. “It is difficult to justify the cost of a railway line, specifically to service the airport in that initial stage,” said Truss. “If you look at the experience around Australia, Melbourne doesn’t yet have a railway line to its airport. When an airport is starting small, usually the railway line comes along a little bit later on. ” It’s an attitude many analysts and business leaders think is short-sighted. The Tourism and Transport Forum (TTF), peak industry group for the Australian tourism, transport, aviation and investment sectors, says the government’s lack of up-front commitment to a rail link is cause for serious concern. Ken Morrison, TTF chief executive, says it “makes no sense to build a new airport in western Sydney which is not connected to Sydney’s rail system… an airport at Badgerys Creek will be far more effective with a train link to Sydney Airport and the CBD. ” The TTF and others believe the rail link needs to be an integral part of the airport construction process and should be completed and operational when the facility opens.

While the NSW state government has announced that the planning process for a southwest rail link extension to Sydney’s second airport has begun, with community consultation starting in May, this will by no means be a fast airport express train but a normal commuter line with numerous stops. What that means is that air passengers laden with luggage will have to tussle withnormal rail commuters, just as they do at Sydney Airport – Heathrow Express it is not.

Fourthly, optimists who think work can begin by 2016, now little more than 18 months away, should realise there is a mountain to climb before getting there. Architects will have to design a terminal… once they know what likely initial demand will be as well as traffic growth projections. The complex task of designing the airport’s precise layout, runway configuration and flightpaths, then ordering the highly sophisticated equipment that will be required, as well as installing it, will take years of planning, installation and testing. This airport is not expected to be operational until the mid-2020s and there are already serious questions, given regional traffic growth projections, over whether a “modest” second Sydney airport will be sufficient to relieve the pressure continuing to grow on KSA.

One thing is certain: this is going to be no 21st Century Aerotropolis the likes of which have been popping up around Asia over the last decade, airports like Hong Kong Chep Lap Kok, Osaka Kansai, Kuala Lumpur International, Beijing International and Shanghai Pudong. The government has made it clear the beginnings will be modest, with a single runway and a single terminal. Expansion will take place only when demand is seen. For Badgerys there is no philosophy of “build it big and they will come”.

Another serious question is whether governments – both federal and state– can do what they have historically never been very good at: moving things along quickly and sticking to a timetable. The Abbott government is certainly full of big promises. The Federal Assistant Minister for Infrastructure Jamie Briggs told a radio audience Canberra will take “any necessary action” to ensure the airport will be built quickly and efficiently. He went as far as saying the government would consider passing “special legislation” through federal parliament if it felt construction of the airport was taking too long. “We will take necessary action to move it on. We’re not going to let this be dragged on by professional protesters. If we have to, we’ll look at special legislation to pass through the federal parliament to ensure we get this airport built. To ensure we get the roads to support the airport built and we’ll work with the NSW government in making it happen,” he declared.

What may be crucial in all of this is the formation of some sort of body to take the whole second airport process out of the hands of government. Key business and union leaders have already called on Canberra to quickly set up an independent western Sydney airport authority to drive the $9 billion Badgerys Creek project. It could lead sensitive negotiations over land resumptions, flight routes and transport planning, while advocating the benefits of an international airport.

Former Macquarie Bank executive director Warwick Smith, a member of the joint study committeewhich recommended the airport site, said an authority needed to be established “which transcends changes in government… different prime ministers and different premiers can have different views so we certainly need a co-ordinated approach and speed is of the essence,’’ he said.

While there will be protests and concerns over noise issues, there is little doubt that the new airport will come as a huge boost to Sydney’s fast growing west. With a current population of around two million, that is expected to double over the next couple of decades. A Deloitte Access Economics report, commissioned by the NSW Business Chamber, found it would generate significant economic benefits, not only for western Sydney but the broader Sydney region. Key findings were that there will be an estimated impact on the western Sydney economy over the period 2020-2050 of between $9. 2 billion and $15. 6 billion, and on the whole of Sydney economy of between $15. 7 billion and $25. 6 billion. Over the same period it would created and additional 12,645 to 19,982 jobs for western Sydney, and between 20,601 and 31,736 jobs for the Sydney region.

As far as the airport itself is concerned, however, the reality is that for a long, long time to come, the millions of airline customers living in Sydney’s west will still have to trek into KSA if they are heading overseas to London, Los Angeles or elsewhere on a holiday or business trip.