Centerlines - March 2009 - (Page 23) ON MANAGEMENT through the use of municipal bonds, creating a lower operating structure. “At the end of the day, whatever revenues are generated by a public entity could just as easily have been generated by a private one,” Krummenacker said. “A private entity doesn’t necessarily give you a better revenue pull.” Krummenacker said there is no evidence that there is a mounting interest in wide-spread privatization throughout the United States, but that the privatization of Chicago Midway Airport could potentially reopen the discussion. While the toll road sector has seen great success with privatization, he said that there are not enough parallels between airports and toll roads to expect the same success. “There has not been that rack of investment in aviation facilities like we had seen with (roadways),” he said. ■ PHOTO COURTESY OF GREATER MONCTON INTERNATIONAL AIRPORT AUTHORITY INC. The Greater Moncton International Airport, Moncton, N.B., is another airport which Vancouver Airport Services Ltd. helps manage. The company is setting its sights on managing London’s Gatwick Airport. and commercial offerings, and to ensure fair pricing. “We will be working with existing carriers to provide additional services for both domestic and international service,” he said. “As traffic grows, there will be a need for future facility improvements, such as expansions to parking, terminals and ramp, and improvements to existing airfield infrastructure such as taxiways.” Casey said their proposal for Midway was superior to others in part thanks to the strong partnerships within the consortium, which will help it develop the airport and provide excellent service to its passengers. Each of the partners brings its own experience and knowledge to the venture. Vancouver Airport Services, Casey said, brings its global airport operating experience; Citi and John Hancock contribute “a solid understanding of infrastructure investment and world capital markets, along with the backing of large financial institutions.” The consortium allows Vancouver Airport Services to maximize airport development and management opportunities, Casey said. The consortium may bring some operating efficiencies to airports that the previous airport sponsor may not have had access to, said Kurt Krummenacker, a senior analyst with Moody’s Investors Service. However, he added, it might be difficult for those operating efficiencies to overcome the benefit of the municipal financing. A public entity is able to borrow at a lower rate Success should be a non-stop pursuit. At URS, we believe that when you put your experience to work, you uncover solutions that move people forward. Today, as the requirements of the air transportation business continue to grow and change, our ability to help our customers meet their goals across all aspects of a project’s life cycle is unmatched. Which is why, whether it’s a terminal expansion, a runway, communications and security systems or landside improvements, more people are turning to us to get it done. We are the new URS. POWER INFRASTRUCTURE FEDERAL INDUSTRIAL & COMMERCIAL TheNewURS.com www.aci-na.org | CENTERLINES 23 http://www.urscorp.com http://www.aci-na.org
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