Jam-packed airports add to pressure
By Hou Liqiang in Nairobi and Hu Haiyan in Beijing (China Daily Africa) Updated: 2015-01-30 10:39"You even have to import nails in some countries," Liu says. "There is only one cement plant in some regions, making the price quite high. These all raise costs and risk."
AVIC-ENG's preparations for its current project in Nairobi illustrate the difficulties in obtaining materials. Though construction has yet to officially begin, Mu Yunqing, deputy general manager of AVIC-ENG, and his more than 30 colleagues have been doing preparatory work for months.
One of the most painstaking parts is buying the hundreds of thousands of items and equipment needed for the project.
"We may have to import more than 10,000 kinds of objects," Mu says. "But just as nobody counts how many hairs there are on your head, nobody sees that.
"Building an airport here is very different to what happens in China. If you need something for construction in China, after a few phone calls the materials you want will be delivered to you. But here, there are very few factories and we have to import 80 to 90 percent of the materials we need, including small objects like screws and bolts."
It takes about three to four months to receive anything that has been ordered and transport alone takes one month, which means preparatory work must begin months in advance of the planned construction.
In five years of working on airport projects, the company has accumulated a vast amount of know-how that can now be put to profitable use, Mu says.
Before the current Nairobi project, Mu and his colleagues had helped build the airport's Terminal 4 and been involved in other projects in the airport since 2010.
Though such projects may ultimately be lucrative for construction companies, obtaining funds is not exactly easy in a continent where tax revenue falls well short of what is required to pay for the infrastructure that needs to be built.
Four years have passed since AVIC-ENG won the bid for Jomo Kenyatta International Airport, and Kenya's President, Uhuru Kenyatta, son of the man after whom the airport is named, laid a foundation stone at the end of 2013. Yet AVIC-ENG has only got 5 percent of the project funds. Mu says there is talk that some funding may finally drop into AVIC-ENG's bank account in February.
Liu of the Institute of African Studies at Zhejiang Normal University says: "Many African countries set great store by China and its investment in infrastructure. They hope it can transfer more technology, employ more local workers and protect the environment. All these factors are unknowns in China's investment."
The lack of proficient skilled labor not only raises the cost of airport projects but also makes it difficult to organize local employees, she says.
"Contractors from Europe and the US are showing a keen interest in investing in Africa; South Korean and Japanese companies are becoming more active in the continent with their governments' support; Russia and Brazil are interested in building transport networks. This will mean stiffer competition for Chinese companies."
As aviation in Africa grows, Chinese companies have the chance of cashing in on a lot more than building airports.
"With airports, it's not only about airstrips and terminals," says Liu of China Airport Construction Group Corporation. "You also need the system to command and dispatch flights, air traffic control and aircraft maintenance. There are other businesses around the airport, such as bonded areas, logistics parks, conference and exhibition center, hotels and so on."
China has a lot of experience in all of these areas that can be put to valuable use Africa. Chinese companies could also run airports. The government is encouraging Chinese companies in this direction, Liu says.
"This is an opportunity and a challenge for Chinese companies, because airport management is connected with the kinds of area that Chinese companies need to improve in. "We are used to solving foreign problems using Chinese methods. If we continue on that path, we face difficulties. But this will force us to improve. Those who can quickly learn will eventually dominate the market."
Contact the writers through houliqiang@chinadaily.com.cn
( China Daily Africa Weekly 01/30/2015 page6)
