Dubai delays airport package award

18 May 2017

Award delayed despite recent signing of $3bn credit facility

Dubai Aviation Engineering Projects (DAEP) has yet to award the baggage handling system (BHS) package for Al-Maktoum International airport.

MEED earlier reported that the award was expected to take place around mid-May.

Khalifa al-Zaffin, executive chairman of the Dubai Aviation City Corporation (DACC), declined to comment on when the contract will be awarded at the Airport Show held this week in Dubai.

“It is likely that a final approval has yet to be obtained,” a source familiar with the project tells MEED.

Dubai Civil Aviation Authority (DCAA) Chairman Ahmed bin Saeed al-Maktoum confirmed earlier this week that the $33bn expansion of Al-Maktoum International will proceed as planned despite challenges faced by the aviation sector.

The award of the BHS package, one of the most crucial elements of the airport expansion design, has been delayed despite the  recent signing of a $3bn credit facility that will be utilised for the expansion of both Al-Maktoum International and the operational enhancements of Dubai International. The credit facility, signed under the name of Airport Financing Company (Finco) was signed and announced on 14 May. 

Germany’s Siemens and Netherlands-based Vanderlande Industries are understood to be among the bidders that submitted an offer for the baggage handling system contract in December last year.

Construction of the BHS is expected to be completed in 2024, a year prior to the target completion date of the first phase of the airport expansion project.

The system will be serving 134 contact stands and additional active remote stands. It will have a capacity to handle 220,000 bags daily between arrivals, departures and transfers. Transfers are expected to account for 70 per cent of the airport traffic, a feature that requires a highly complex BHS.

Apart from the installation, testing and commissioning of the system, the scope of work involves a conceptual design of the entire phase of Al-Maktoum International to ensure system integrity and future-proof the system and a detailed design for the West Terminal Building phase 1A Concourse 1 and one node of Concourse 2 with the related remote stands operation

DAEP has also recently received bids for the contract to build a tunnel at Al-Maktoum International. The tunnel will be used for the airport’s baggage handling system. It will be over 4 kilometres long, 33 metres wide, and 15 metres high. It will also link the airport’s West Terminal building with the concourse buildings.

In February, DAEP released the tender for the automated people mover (APM) system at Al-Maktoum International. Bids are expected on 30 May. The high capacity automated conveyance system will transport passengers between the landside terminal and the airside concourses, and connect passengers between and within concourses.

The design contract for the air traffic control tower of the airport is also expected to be awarded soon.


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