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Civil and Military Airport Construction Project of Siping City
2016/11/29     Source:

 

1. Introduction to the Project

1.1 Project Background

To further improve three-dimensional transportation network, construct transportation pattern in Siping City, and satisfy the passenger transport demands of Siping City and surrounding counties (cities) and Liaoyuan City and Changtu County in Liaoning Province, Siping City plans to build a civil and military airport. The project conforms to the requirements of national strategic layout to develop feeder-line airports and build and improve airline network. It not only satisfies the needs of combat readiness, but also helps to improve the layout of airports in Jilin Province and construct three-dimensional transportation network in the central part of the northeast of China and promote the coordinative economic development in Siping City and Jilin Province.

1.1.1 Market Overview

Vice Prime Minister – MA Kai stated in the National Low-altitude Airspace Management Meeting in November 2014 that to accelerate the development of navigation and air traffic areas, promote the airspace reform in pilot cities and strive for the overall implementation of reform across the whole country in 2015, the relevant supporting policies would be launched successively. In addition, the National Development and Reform Commission also indicated in the last year that to cultivate new economic growth points, the targeted policy measures in key areas shall be launched, which includes the opening of low-altitude airspace. Thus, it is the trend that the dividend of reform would continue to be released.

Many aviation experts spoke to journalists that the stimulating effect of general aviation industry to other industries was obvious and when the input-output ratio is 1:10, the driven employment ratio is 1:12.

In order to further promote military-civilian cooperation and promote the development of civil aviation and army construction, our Air Force and Civil Aviation Institutions announced on April 3, 2015 that they would establish a coordination mechanism to facilitate the implementation of joint management of military and civilian combined airport.

The In-depth Development Meeting for the Civil and military Integration Development on the Civil and military Airport was held on April 3, 2015. The responsible persons of the Air Force and the Civil Aviation Authority of China said that both sides would establish a operation management mechanism for civil and military airport to ensure smooth coordination, shared resource and advantage complementation in order to gradually realize the civil-military integration of “flight safety guaranteed in peacetime, military operation needs met in wartime” and realize “economic-military balanced operation, win-win situation in both market and battlefield”.

According to the spirit of meeting, the Air Force and Civil Aviation shall establish a multi-leveled coordination mechanism, carry out the united maintenance of airport facilities, organize the united security guarantee of Air Force and Civil Aviation Aircraft and implement the joint operation management of Air Force and Civil Aviation Airport.

The director of Civil Aviation Administration – LI Jiaxiang told journalists that, by 2020, the number of aircraft for air traffic in China will exceed 5,000, and the operation quantity of general aviation reaches 2 million hours per year with an average annual growth rate of 19%. The total value of domestic general aviation demand will reach USD 15.5 billion. General aviation is a new emerging industry and new economic growth point with huge potential. It shall be developed urgently.

1.1.2 Advantageous Conditions

(1) Industrial advantage

Siping City has strong industrial base. It has been the key industrial site in the northeast of China since the 1st Five-Year Plan. The agricultural and livestock processing, equipment manufacturing and new energy industries have been initially formed, and metallurgy and building materials, chemicals and pharmaceuticals industries are its advantageous industries. High-tech and modern logistics industries are its new emerging industries. They constitute the industrial system of Siping City.

(2) Transportation advantages of location

Siping City is the nearest city and the only way connecting Jilin, Heilongjiang and the eastern region of Inner Mongolia to the coastal ports and the Bohai economic circle. It is an important transport hub and logistics node city in the northeastern region of China. The land transportation is very convenient. Siping Station is one of 18 marshalling stations in China. Beijing-Harbin Railway, Siping- Qiqihar Railway, Siping-Meihekou Railway are joined here. Harbin-Dalian High-speed Railway has been opened to traffic in 2011. Tongjiang (Heilongjiang) - Sanya (Hainan), Daqing-Guangzhou and Changchun - Shenzhen Highways and national and provincial highways all passes through Siping from east to west and from north to south. The transport radius radiated across four provinces (regions) in the northeast of China is short with low transportation costs. With the booming development of modern commercial logistics, Siping Northeast Asia Logistics Port Project is under intense construction. Siping is about 550 km from Dalian International Shipping Center. It is only one-hour drive to Longjia Town of Changchun and Shenyang Taoxian International Airport.

(3) Advantages of air resources

The current airport development of Jilin Province is centered in Changchun with the auxiliary layout in the northwest and northeast directions. Changchun Airport which is relatively close to Siping mainly provides civilian transportation services. It is the main passenger transport airport in Jilin Province. Siping Civil and military Airport can provide passenger transport services just as Changchun Airport does. It makes a compensation for the local market positioning of aviation development in the southeast and northwest directions. There is no major airport within the economic circle radius of 100 km around Siping to ensure clearance conditions that there is no tall obstacle in the air of Siping. It has air resources for the development of aviation industry.

1.2 Content and Scale of Project Construction

The project is positioned as a domestic feeder-line airport according to the Civil Aviation 4C-Class Standard. It shall be renovated and expanded on the basis of the current Siping Military Airport. Meanwhile, the supporting facilities, e.g. airport terminal, navigation management, office, cargo transportation, maintenance, power, hangar, oil supply, parking lot, etc. shall be built. A meter runway and a real angle linking taxiway are under planning on the basis of the existing military airport runway. The length of runway is preliminarily determined at 2500m, which can meet the demands of ERJ145, ERJ190, MA60 and other domestic transport aircrafts as well as B737 series and A319, A320 etc. The flying range is preliminarily determined at 1500-2000 km. it can meet the passenger transport demands of Siping City and the surrounding counties (cities), and Liaoyuan City and Changtu County in Liaoning Province. The radiated population is about 5 million.

1.3 Total Investment of the Project and Capital Raising

Table 1: Summary Table of Total Investment of the Project     Unit: RMB10,000

No.

Expense Name

Amount of Investment

Proportion of Total Investment %

Remarks

1

Construction investment

30000

85.7

 

2

Interest incurred in construction period

 

 

 

3

Working capital

5000

14.3

 

 

Total investment of the project (1+2+3)

35000

100

 

1.4 Financial Analysis and Social Evaluation

1.4.1 Main Financial Indexes

Table 2: List of Major Indexes for Forecast of Economic Benefits 

No.

Name

Unit

Index

Remarks

1

Sales income

RMB10,000/a

42300

Normal year

2

Total profit

RMB10,000/a

10600

Normal year

3

FIRR of all investments

%

21

After income tax

4

FNPV (Ic=10%)

RMB10,000

17778

After income tax

5

Period for recovery of all investments (after tax)

a

5.4

Including 2 years of construction period

6

Rate of return on investment

%

23

After income tax

Note: "RMB10,000" in the Table shall be RMB.

1.4.2 Social Evaluation

The construction of airport will directly drive the development of various resources and promote the development of related industries and regional economy. It is of good social benefits.

1.5 Cooperative Ways

Joint venture and cooperation.

1.6 Construction Site of the Project

Siping Civil and military Airport is located to the south of Central West Road of Siping City and to the west of West Ring Road (current for military use).

1.7 The On-going Condition of Project

“Report on the Feasibility of Transformation of Siping Military Aviation Airport to Civilian Use Airport”, “Report on the Feasibility of Siping Civil and military Airport” and “Report on the Analysis of Performance of Aircrafts in Siping Airport and Aircraft Take-off –Failure Emergency Procedure” have been compiled and passed the expert evaluations by the China International Consultancy Company. The field tests to the load bearing strength of the existing military airport runways have completed. The test report of bearing strength (PCN) values of airport runways has been compiled. The compiled “Report on the Pre-feasibility of Siping City Civilian Use Airport” has been revised according to the opinions given by the expert group. It is now waiting for the approval of the State Council, Central Military Commission and the National Development and Reform Commission. Siping Government has formally signed the “Protocol on the Problems about Siping Civil and military Airport” with the PLA Shenyang Military Region Air Force.

2. Introduction to Partner

2.1 Basic Conditions

Name: Siping City People's Government

Address: No. 59, Shihu Road, Tiexi District, Siping City, Jilin Province

2.2 Overview

Siping City is located in the center of Northeast Asia. It is in the central area of Songliao Plain. The city covers an area of 14,080 km2 with a total population of 340 million. The urbane area is 741 km2 and the urban population is 60 million. It has the jurisdiction over Gongzhuling City, Shuangliao City, Lishu County, Yitong Manchu Autonomous County, Tiedong District, Tiexi District, Liaohe Agricultural Reclamation Management District and Gongzhuling National Agricultural Science and Technology Park, Siping Economic Development Zone, Siping Hongzui High-tech Development Zone and Gongzhuling Economic Development Zone.

Siping is a city of hero. During the liberation war, “Four Wars in Siping” is famous across the world. Siping is appraised as “Oriental Madrid” by historians. Under the guidance of Siping Spirit of “tackle tough, seeking the rich and strengthen the country”, Siping has been awarded as the “National Sanitary City”, “National Garden City”, “National Urban Community Construction Demonstration City”, the “National Double Support Model City” and “National Spiritual Civilization Advanced City”, etc. It is appraised as “China Top 20 Small and Medium Cities with Most Potential Investment Values”, “Fifth Financial Ecological Cities in China” and “National First Batch Growing Entrepreneurial City”.

2.3 Contact Method

Zip Code: 136001

Contact Person: Wang Wenxiang

Tel: 0434-6998301  18643442439

Fax: 0434-6998301

E-mail: spwwx88@163.com

 

Contact Person of Project City (Prefecture):

Contact Unit: Economic and Technical Cooperation Bureau of Shiping City

Contact Person: Wang Hongyan

Tel: 0434-3266807  13604348567

E-mail: 695740353@qq.com

Website of City (Prefecture): http://investsiping.com

 

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