Negotiating 30-Year Operating Rights Worth 540 Billion Won
Bridgehead for Entry into Latin American Air Passenger Market
[Quito (Ecuador) = Lee Dong-woo, Asia Economy] Korea Airports Corporation has entered the final negotiations for the concession contract to operate 'Manta' Airport, the largest port city in Ecuador.
The Korea Airports Corporation negotiation team met with the Ecuadorian government on the 18th (local time) to coordinate the details of the 30-year long-term concession contract for Manta Airport, worth a total of 540 billion KRW. Once the concession contract is completed, Manta Airport is expected to become the corporation's 15th airport, joining the 14 airports it operates domestically.
Through this contract, the corporation plans to manage and operate all facilities of Manta Airport, including the passenger terminal and runway, from as early as 2022 until 2051. The corporation expects profits from airport operations by investing 100% equity in Manta Airport under this contract.
The corporation envisions using the Manta Airport concession project as a foothold for full-scale entry into the Latin American market. According to KOTRA, Ecuador is located at the western starting point of the South American continent, with easy access to the U.S., a transportation hub, to the north, and facing South American countries to the south, making it advantageous for developing international routes.
In particular, Manta Airport, located in the capital of Manab? Province, Ecuador, is within approximately 1000 km in a straight line from the Gal?pagos Islands, a UNESCO World Heritage site, making it favorable for attracting visitors worldwide. This distance is 100 to 200 km closer to the Gal?pagos Islands than Quito Airport (1312 km), located in the capital, and Guayaquil Airport (1170 km), located in the economic city.
The Gal?pagos Islands, consisting of 19 islands and surrounding marine protected areas, are known as a "living museum" boasting abundant tourism resources. The corporation anticipates that Manta Airport will grow into a key hub for culture, tourism, and transportation infrastructure by opening new routes such as "Gal?pagos-Manta-Miami."
This project began with an official proposal during the 2019 visit of then-Prime Minister Lee Nak-yeon to Ecuador. After consultations among Korea Airports Corporation, the Ministry of Foreign Affairs, the Ministry of Land, Infrastructure and Transport, and other departments, former Ecuadorian President Len?n Moreno approved an administrative order in April this year delegating Manta Airport to the corporation. The newly inaugurated Guillermo Lasso administration has also expressed its intention to entrust airport operations to the corporation, continuing the final contract negotiations in earnest.
The corporation plans to steadily expand its presence in the aviation market in Latin America, including Ecuador, through consulting for the operation of seven airports in Colombia and aviation personnel training projects in Paraguay. Previously, in 2019, it became the first domestic company to win the Project Management Office (PMO) contract overseeing the construction of the new Chinchero Airport in Peru.
Son Chang-wan, President of Korea Airports Corporation, said, "If we win the Manta Airport concession project, Korean companies will be the first to enter the Latin American airport operation market, which has been dominated by global airport operators, leading the realization of K-Airports worldwide."
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