Fraport AG has won a 30-year concession to operate Fortaleza Pinto Martins International Airport, plus a 25-year contract for Porto Alegre Salgado Filho International Airport in Brazil, where it will take over the management and operation of both facilities from Brazil’s state-owned Infraero.

Responding to the tenders called by ANAC (Agência Nacional de Aviação Civil) Fraport won the single terminal Fortaleza Airport with the top bid of BR1,505.75m ($482.5m) and the dual passenger terminal Porto Alegre by bidding BR382.01m ($$122.4m) in yesterday’s public auction.

Commenting on its wins, Fraport said: “Along with the concession price, Fraport will pay a fixed fee amounting to five-per cent of the airport’s annual revenue. The concession will run for 30 years at Fortaleza and for 25 years at Porto Alegre.

LONG-TERM ‘OWNERSHIP’ DEALS

“Currently holding a 100 per cent stake, Fraport will be the sole owner and participant of these concessions. Thus, the concessions and future results will be fully consolidated at the Fraport Group level.

“Following the takeover of the concessions, Fraport AG expects an additional accumulated EBITDA at the Group level resulting from the two airports of around 350 million euros ($377m) during the first five years and an accumulated negative contribution to the Group result ranging from the mid-to-high double-digit million euros.

Porto Alegre Salgado Filho International Airport in Brazil.

FRAPORT DEBT +224M

“Due to the takeover of the concessions and the mandatory capital expenditure, Fraport AG expects an increase in Group net debt by up to around 700 million euros ($224.3m) in the first five years.”

As Brazil’s twelfth busiest airport, Fortaleza’s Pinto Martins International Airport (FOR) is located in the federal state of Ceará in the north-eastern-most part of Brazil, having handled 5.7m passengers in 2016.

DUFRY AND DFA ARE KEY OPERATORS

By contrast, while Porto Alegre Salgado Filho International Airport (POA) serves as the gateway to Brazil’s southern-most federal state of Rio Grande do Sul and handled 7.6m passengers last year as Brazil’s ninth-largest airport.

Dufry operates duty free stores in both departures and arrivals at Fortaleza, while Duty Free Americas operates the duty free contract at Porto Alegre.

In addition to these wins, VINCI Airports also reports that it was successful in its bid for a 30-year contract to operate Deputado Luis Eduardo Magalhaes Airport in the city of Salvador, which handled nearly 7.5m passengers last year as Brazil’s ninth-largest airport. Once again, Dufry operates both arrivals and departures duty free shops at Salvador Airport.