Maritime / Airport Facilities - Government Development … · · 2008-11-18Maritime / Airport Facilities The Commonwealth of Puerto Rico. ... Humacao, Patillas, Fajardo and Vieques

Maritime /Airport Facilities

The Commonwealthof Puerto Rico

Agenda

Puerto Rico Ports Authority (PRPA) Overview

PRPA Capital Improvement Plan

Luis Muñoz Marin (LMM) Airport ParkingOverview

LMM Parking Transaction Overview

Future Investment Opportunities• Air Cargo• Ferry Terminal and Operations• Additional Opportunities• Potential Transactions for Future Investment

Opportunities

Puerto Rico Ports Authority Overview

History of PRPA

• The Ports Authority of Puerto Rico is a public corporationcreated by Law 125 of May 7, 1942

• Headed by an Executive Director and a Board of Directorsappointed by the Governor

PRPA’s Current Operations

• Administers and enforces the airports and seaports of PuertoRico

• Operates and regulates:– 11 Airports:

• LMM as well as airports in Isla Grande, Ponce, Mayaguez, Arecibo,Aguadilla, Culebra, Humacao, Patillas, Fajardo and Vieques

– 10 Ports:• Puerto Nuevo in San Juan as well as port facilities in Arecibo, Fajardo,

Guanica, Guayanilla, Guayama, Yabucoa, Ceiba, Culebra andVieques

– Select Ceiba assets upon transfer

PRPA Capital Improvement Plan

• The PRPA has outlined nearly $1.0 billion of capitalimprovement plans through 2012

– $415 million of airport investment– $530 million of maritime investment

-

50

100

150

200

2007-08 2008-09 2009-10 2010-11 2011-12

LMM

Aguadilla

Ceiba

Ponce

Other

PRPA’s Capital Improvement Plan

Airport Capital Improvement Plan ($mm) Maritime Capital Improvement Plan ($mm)

-

50

100

150

200

2007-08 2008-09 2009-10 2010-11 2011-12

San Juan

Isla Grande

Other

Puerto Nuevo

Yabucoa

Major Airport CIP Projects

• LMM Airport– Terminal A - $83mm– Extension of Runway 8 – $55mm– Reconstruction of Taxiway Sierra – $40mm– Extension of Taxiway Sierra – $38mm– Extension of cargo area road – $10mm

• Aguadilla Airport– Improvements to Runway 8/26 – $32mm

• Ponce Airport– Extension Runway 12 – $8mm

• Ceiba Airport– Improvements to existing runway – $5mm– Improvements to passenger terminal – $2.5mm– Improvements to electric substation – $1.2mm– Improvements to access roads – $1.2mm

Major Maritime CIP Projects

• San Juan Pier– San Juan Waterfront Development – $272mm– Relocation of island hoppers – $10mm– Pier 3 improvement (Genesis Cruise ship) – $7mm

• Puerto Nuevo Port– Army Terminal Renovation – $45mm– System improvements – $1.2mm

• Isla Grande Pier– Construction of new cruise ship terminal – $31mm– Piers 15 and 16 renovation – $25mm– Dry Dock renovation – $9mm

• Yabucoa Pier– Construction of new cargo pier – $60mm

San Juan Waterfront

• In addition to the CIP, Puerto Rico has embarked upon a $1.5billion plan to revitalize the San Juan waterfront

– Creation of a mixed use, urban waterfront destination– Public access to the waterfront– Improved transportation network, including light rail and walkable

pedestrian streetscapes

• Multiphase project will ultimately develop nearly 5.5 million sq ft– 1,000 new hotel rooms– 1,500 new apartments– 500,000 sq ft of new commercial space

San Juan Waterfront

• Public realm design will include development along the AtlanticOcean and the San Antonio canal

Envisioned Public Realm Improvements

Paseo del Puerto

Light Rail

Parque Bahia

North South Connections

Near-Term Development Plan

• The Port of San Juan– #5 on the US East Cost– #10 in the entire United

States– #1 Caribbean cruise

vessel port with 1.3 mmpassengers

Bruce CraneDirector299 Park AvenueNew York, NY 10171Tel: (212) [email protected]

Henry CatryExecutive Director299 Park AvenueNew York, NY 10171Tel: (212) [email protected]

Denotes Primary Contact

Contact Information

• Please note that the PRPA and GDB should not be contacteddirectly

• If you are interested in participating in any of the CIP projects,please contact:

LMM Parking Overview

LMM Overview – Gateway to the Caribbean

10 miles, 15 minutes

• Two hours from Miami, Panama• Three and a half hours to New York City

Passenger Movements Continue to Rise

• LMM airport has experienced continuous growth increase inpassenger movements

– 4.23% compound annual growth rate

Passenger Movements at LMM 1 (mm)

1 Puerto Rico Ports Authority FY 2006 Aviation Statistic Report

9.0

9.5

10.0

10.5

11.0

2002 2003 2004 2005 2006

• The airport currently serves over 30 domestic and internationalairlines

LMM Overview – Represented by all Major Carriers

Passenger Movements at LMM by Carrier - FY 2006 1

Other

7%

Jet Blue

5%

Continental

6%

US Air

6%

Delta

8%

American

63%

United

2%Spirit

3%

1 Puerto Rico Ports Authority FY 2006 Aviation Statistic Report

• The Ports Authority has recently invested $390mm inupgrading the airports facilities

• New Terminal A ($83mm estimated investment)

• Runway reconstruction– Full reconstruction of its second runway

LMM Airport – Building for the Future

A World Class Parking Facility for LMM

• A six story parking structure– Built in 1999– Connected to Terminals C

& D via 2nd floor ramp– Planned connector to

Terminals A & B• Capacity to Grow

– 2,220 public parkingspaces

– 1,500 employee parkingspaces

– 700 official vehicle spaces• Surface parking site is ready

for new garage

Investment Highlights

• Only “on-airport” parking at LMM– LMM is the principal airport of Puerto Rico; over 10.5 million annual

passenger movements, with a 4.2% continued growth rate since2002

– Limited “off-airport” or public transportation alternatives

• Proven history of stable cash flows– Supported by business travelers

• Ability to expand facility and revenue opportunities with theconstruction of a second structure

– The basis for expansion will be agreed upon in the concessionagreement

Airport Facility Layout

Parking Facility Layout

Surface LotParkingStructure

Site of New Terminal A

Terminal B

Terminal C

Terminal DWest Terminal

Taxi StagingArea

Well Designed Floor Plan

• 531-680Spaces perFloor

• 8 Elevators• 4 Staircases• 1 Entry Ramp• 1 Exit Ramp

Facility Usage

1 John F. Brown Report, September 7, 2006

Tickets by Duration 1

79%

18%

3%

Revenues by Duration 1

36%

19%

45%

• 64% related to business travelers

• Monthly revenue supported by business travelers and notmaterially impacted by seasonal events (tourism, hurricaneseason, etc.)

Limited Exposure to Seasonality

1 FY 2006 indexed to July 2005, FY 2007 indexed to July 2006

0

20

40

60

80

100

120

Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun

Ind

ex

ed

1

0

20

40

60

80

100

120

FY2006

FY2007

Series3

Puerto Rico Cars Per Capita Continue to Rise

• Among the highest rate of cars per capita in the world• Local growth despite recent US reduction of cars per capita

Passenger Cars Per Capita – 2000-2006 1 Regional Passenger Cars Per Capita 2006 1

1 Euromonitor International

0.44

0.48

0.52

0.56

0.60

2000 2001 2002 2003 2004 2005 2006

Puerto Rico

United States

0.00

0.20

0.40

0.60

Passenger Cars Per Capita

Puerto Rico

United States

Bahamas

Dominican Rep.

Jamaica

• Revenue per passenger is low compared to similarly sizedairports

– LMM generates $3.93 per resident vs. an average of $10.38at comparably sized facilities1

Large Growth Potential

1 John F. Brown Report, September 7, 2006

Airport Code City / Airport Name

Medium

Hub

Dom. Outbound

O&D Pax Residents

(mm)

Parking Revenue

($mm)

Revenue Per

Resident

MIA Miami Intl. L 1.5 $31.8 $21.03PBI West Palm Beach M 1.3 15.8 12.15CVG Cincinnati L 1.5 17.2 11.74JAX Jacksonville Intl. M 1.3 13.6 10.88RNO Reno M 0.8 9.1 10.72SAT San Antonion Intl. M 1.5 13.1 8.83HOU Hobby Airport M 1.5 11.7 7.88BUF Buffalo M 1.3 10.1 7.80DAL Love Field M 1.2 8.8 7.07ABQ Aluquerque Intl. M 1.3 7.1 5.39SJU Lus Muñoz Marin M 1.1 4.5 3.93

Summary All 38 Medium Hub Airports $10.38

Growth Potential From Ancillary Services

• The facility currently offers no luxury or ancillary services

• Possible new revenue sources could include:– Valet and preferred parking services– EZ Pass style payment options– Car detailing / maintenance services– Gas station and convenience store– Expanded food and beverage concessions– Improved revenue control mechanisms

LMM Parking Transaction Overview

Tom OsborneUBS

Proposed Public Private Partnership Transaction

• PRPA intends to offer a long-term lease and concession of theLMM Parking facility

• Concessionaire will:

– Set and collect parking fees

– Operate and maintain existing parking facility

– Design, build, finance, operate and maintain second parkingstructure

Key Terms of Concession

• Facilities:– Main parking structure– Surface parking lot

• Expansion rights/obligations:– Operator may be required to construct a second structure upon

exceeding certain capacity triggers

• Length of concession:– 50-75 years

• Financial considerations– Upfront payment– Fixed or variable periodic payments

RFQ / RFP Process

• Respond to forthcoming Request for Qualifications (“RFQ”)

• Select “short-listed” parties to conduct detailed due diligencebased on RFQ responses

• “Short-listed” parties will be asked to respond to Request forProposal (“RFP”) and be given opportunity to do detailed duediligence ahead of responding to RFP

• The Commonwealth anticipates award of concession by June2008

Expected Schedule

1Q 2008Requests for Qualifications Due

1Q 2008Release Requests for Qualifications

2Q 2008Release Requests for Proposals to Shortlisted Parties

2Q 2008Final Requests for Proposals Due

Expected TimingEvent




Contact Information


• Interested parties should contact:

Future Investment Opportunities

Roosevelt Roads Transfer

• The US Navy is transferring certain land and facilities at theformer Roosevelt Roads Naval Base in Ceiba to PRPA

– Expected transfer of these assets to be finalized by Q1 2008

• These facilities include:– Ceiba airport (11,500+ ft. runway)– 2,650 ft. fuel pier and 32 million gallon fuel storage farm– Deepwater docking terminal on a commercial waterfront

development– 1,050 ft. dry dock

• Development of assets will be through design, build, finance,operate and maintain agreements

These Assets are Centrally Located

AirportFacility

Fuel Pier

ProposedFerry Terminal

Dry Dock

ProposedWaterfrontDevelopment

Air Cargo

New Air Cargo Facilities

• Currently, cargo movements at LMM are limited

• PRPA wants to move cargo shipments to alternate airports atAguadilla and Ceiba

– Less expensive landing and airplane parking fees– Longer runways– Less congestion– Closer to manufacturing facilities

Aguadilla / Ceiba Airports are Well Situated



Aguadilla Overview

• Rafael Hernandez Airport– Aguadilla

– Former Air Force base,opened for commercialuse in 1988

– Single 11,700 ft runway– Currently the only cargo

alternative to LMM, andis generally servicing theWestern half of theisland

– Cargo growthopportunity bydevelopment of newbuildings

– 90 miles West of LMM

Aguadilla Airport Master Plan

Air CargoDevelopment

Ceiba Overview

• The Roosevelt RoadsAirport at Ceiba is a formernaval base

– Will be reconfigured for useby commercial, cargo andNational Guard planes

– Two runways, one of whichis 11,500 ft; the secondlongest in the Caribbean

– Anticipated to be the majorsecondary airport and willgenerally serve as theEastern hub for cargooperations

– 30 miles East of LMM

Ceiba Airport Master Plan



Ferry Terminal and Operations

Ferry Operations Overview

• Long-term operations and maintenance contract for PuertoRico’s two major ferry routes

– Between Cataño, San Juan and Hato Rey• 7 boats• Frequent service from both terminals, 5am-10pm, seven days

per week• Approximately 1.1 million riders per year• Current one-way fare: 50 cents

– Between Fajardo, Culebra and Vieques• 5 boats• Six daily trips between each terminal• Large volume of cargo traffic• Approximately 1.0 million riders per year• Current one-way fare: $2.25

Av John F.Kennedy

Expreso LuisMuñoz Rivera

Proposed Map of Ferry Routes

• Ferry service will serve San Juan, Cataño and Hato Rey

Proposed Map of Ferry Routes (cont.)

• Ferry service will serve Culebra and Vieques via Ceiba• New Ceiba service to Vieques will be 30 minutes vs. 90 minutes

currently

Proposed Map of Ferry Routes (cont.)

• The Operator will have the option to expand service to otherislands such as the US and British Virgin Islands

Ferry Terminal Site - Ceiba

• The anticipated Ceiba facilitywould be located on Pier 2 of theexisting Naval pier at RooseveltRoads

– 50 year old pier with a concretedeck on concrete pile structure

– Depth of 38 feet– 2 Berths; each with telephone

connections, sanitary sewer, waterand electrical connections

• Existing operational ferryterminals are located at Culebraand Vieques

Additional Opportunities

Fuel Pier

• 15 year old pier formally operated by the US Navy– 2,650 feet long– 40 foot draft– 2 berths– 6 loading arms– Three pipelines capable of holding diesel fuel, JP5 and potable

water– Directly connected to 32 million gallon fuel farm

• Fuel pier is in near operational condition

Fuel Pier – Deep Water Access

• 8 above ground tanks• 10 underground tanks

Dry Dock

• Dry dock, formerly operated by the US Navy– 1,000 feet long– Could be used for the repair of commercial vessels– One of only two dry docks in Puerto Rico

• Under US law, the facility will be allowed to repair US flaggedvessels such as Jones Act carriers and military vessels

• Includes land to support operations

• Anticipated establishment of ferry service from Ceiba and cruiseship volume may become a main source of business

• Facility has not been operational recently and may requireextensive rehabilitation and repair before use

Dry Dock – 1,000 Feet Long

Potential Transactions for Future InvestmentOpportunities

Potential Transactions

• Combination of Aguadilla and Ceiba cargo opportunities intoone lease agreement for the design, build, finance, operate andmaintain of expanded terminal facilities at Aguadilla and newfacilities at Ceiba

– Aguadilla facilities ready for immediate construction of cargooperations facilities, expected permitting for Ceiba facilities H12008

• Management agreement for the operations of both the Culebra-Vieques ferry routes and Cataño-San Juan-Hato Rey routes,with an obligation to design, build, finance, operate andmaintain the new ferry terminal at Ceiba

• Long term lease of the fuel pier and dry dock




Contact Information


• Interested parties should contact:

Documents

Maritime / Airport Facilities - Government Development … · · 2008-11-18Maritime / Airport Facilities The Commonwealth of Puerto Rico. ... Humacao, Patillas, Fajardo and Vieques