AIRPORT CITIES DAY 1 SESSION 3

1. April 1st 2014
Airport City Development
opportunities in China
Desmond Shum
Chairman of Aeropolis Group
www.aeropolisgroup.com

2. 1 www.aeropolisgroup.com
Aeropolis Group
Delivering World-class Airport Cities to Foster Local Economic
Development
 We finance and develop large-scale projects with airports at their heart.
Partnering with investors, governments and related businesses, we
provide tailor-made plans for the development of airport cities, promoting
development in the areas around airports and creating long-term
economic value for our partners, the city and the wider community.
 Aeropolis Group, formerly as Airport City Development Co., Ltd (ACL), led
the planning and development of the Beijing Tianzhu Free Trade Zone,
the major component of Beijing Airport City. It is the first of its kind in
China, a Public-Private Partnership among airport authority, local
government and private enterprise in airport facility and business
development.

3. 2 www.aeropolisgroup.com
Beijing Airport City
Airport City Logistics Park (ACLP)
 ACLP is strategically located north of the
second runway of the Beijing Capital
International Airport (BCIA), with a total site
area of 3.33 sq km.
− Integrating of Air Cargo Terminals, Express
Center, Import Custom Supervision Area and
Export Cargo Consolidation Area, Bonded
Logistic Center, and Office Complex into a
seamless logistical zone, significantly improving
efficiency in the customs clearance process.
− In addition to ACLP, the Aeropolis Group led the
planning and development of the Beijing Tianzhu
Free Trade Zone, the first airport free trade zone
in China.
 The ACLP officially went into operation on
December 2010.
 From 2010 to 2013, BCIA cargo volume
increased from 1.55 million ton to1.84 million
ton, with CAGR of 5.9%.

4. 3 www.aeropolisgroup.com
China is aggressively building airports
• According to China Aviation
Department information, the
PRC government plans to
invest heavily in aviation.
During the 12th-5 year plan
period (2011-2015), China
plans to construct 82 additional
airports and upgrade 101
existing ones.
Five-year construction goal
New construction 82
upgraded existing ones 101
Resource：The 12th -5-year plan of the China Aviation Department

5. 4 www.aeropolisgroup.com
Opportunities in different tier of cities
Tier 1
• Beijing, Shanghai, Guangzhou,
Shenzhen
• Large air passenger and cargo volume,
Aviation routes are fully developed
• Focus on operational efficiency, upgrade
of infrastructure as well as commercial
and industrial park
Tier 2
• Provincial capitals and other major cities;
• High potential growth in air passenger
and cargo volume
• Opportunities: Focused regional
logistics center model and “new city”
model
Tiers 3-4
• Medium to small cities with suitable
infrastructure/resources
• Many are considering airport construction
or expansion
• Opportunities: Infrastructure development,
passenger and cargo handling

6. 5 www.aeropolisgroup.com
Challenges facing Airport City Development in China
 Shortage of best in class experience
and knowhow increases risks
Ownership structure of
Airports in China
• Main challenge is complex airport
ownership and regulatory environment
Aviation
Industry
Aviation
functions
Non-
aviation
functions
Function
mix
New City
Develop
ment
Urban
Planning
Regional
Planning
Develop
ment
Strategy
Civil Aviation
Authority/Capital
Airport Holding
Company
Airline Company
Local Government
Provincial
Airport
Holding Co
Interprovincial
Airport Holding Co

7. 6 www.aeropolisgroup.com
Key success factors of airport city development in
China
Airport design: emphasize on flow planning and function design to
optimize operation efficiency and enhance customer experience
Integrated airport cities: leveraging real estate development experience
and deep knowledge of aviation industry to follow the airport function
extension and city expansion trend
Combine international best practice with local experience
1
2
3
Industry within airport cities: regional city planning should be led by
industry planning to promote airport city business value and social
prosperity
4
Implementation: comprehensive range of solutions from investment
planning, design, development, construction through operation
5

8. 7 www.aeropolisgroup.com
Aeropolis Group will bring together airport city related
partners to develop a strategic alliance that aligns
industry resources to create competitive advantages, and
develops airport city projects collaboratively.

9. www.aeropolisgroup.com