Wellington Airport lines up Chinese construction giant for runway extension

Monday, 13 November 2017

Wellington Airport has signed an agreement with a Chinese firm to help build its $300m runway extension. An artist impression of what an extended Wellington Airport runway would look like.

Wellington Airport has lined up the world's biggest construction firm to partner on the runway extension and create tourism opportunities for the capital.

On Sunday airport deputy chief executive Matt Clarke signed a Memorandum of Understanding (MOU) in Beijing with China State Construction Engineering Corporation (CSCEC) and airline, China Express.

Wellington Mayor Justin Lester and China State Construction Engineering Corporation president Wang Xiangming, in Beijing. They are discussing an agreement about Wellington airport's extension as Wellington City Council chief executive, Kevin Lavery, looks on.

The document sets out an agreement for the parties to work together on the airport runway extension and develop the area, such as building hotels.

There is also a commitment to marketing Wellington to Chinese government agencies in order to grow tourism in the capital.

Wellington Airport deputy chief executive Matt Clarke, front centre, signs an agreement on the runway extenstion with representatives from China State Construction Engineering Corporation and China Express. He is overseen by Wellington City Council chief executive Kevin Lavery and Wellington Mayor Justin Lester

The Chinese company that has signed up with Wellington Airport is largest constructional firm and home builder in the world, working in 46 countries. It started working in New Zealand in 2015 and currently has two Kiwi developments - a “super high-rise” apartment block in Auckland and hotel.

* Wellington Airport claims not all planes need to be able to land on longer runway**

On Monday, the airport will also sign an MOU with Beijing Shougang International Travel - a component of the agreement to develop Wellington as a Chinese tourist destination.

An aerial map of the southern end of Wellington Airport's runway with the proposed extension overlaid. It shows the proposed tarmac extension and extended Moa Point Rd underpass.

CSCEC brought expertise to the field of reclamation and would work on airport runway extension as it unfolded, Clarke said.

The runway project is currently being held up an appeal by the New Zealand Air Line Pilots Association over runway safety areas. A resource consent application was placed on hold after the Court of Appeal ordered the Civic Aviation Authority to review its assessment of Wellington Airport's safety area.

'The MOU says we will work with CSCEC on the project as a partner but the selection of any final main contractor will be decided later,' Clarke said.

The partners would also explore a range of projects around the airport such as tourism infrastructure like hotels and tourism activities, he said.

China Express is a regional airline that fed hub carriers and had global ambitions to expand and would be working with the airport on new air routes to Wellington, he said.

Wellington City Council chief executive Kevin Lavery and Wellington mayor Justin Lester are in China on a mayoral trade mission.

As an airport shareholder, they witnessed the agreement and helped negotiate the deal.

Before the signing, Lester told the Chinese delegation, Wellington was ranked the most livable city in the world, was one of the best environmental performers but it had one big problem: 'Our front door to the world is closed because we don't have a truly international airport.'

'While it is a wonderful city, not enough people from around the world can enjoy it but with your help and support, this partnership can help open our front door.'

Given CSCEC's experience, it would be a good partner for the airport extension, should it go ahead, he said.

Lavery was pleased the deal was about the broader economy and not just the runway.

'It's about opening Wellington to the world .. ultimately it's about more people coming to the city and giving businesses more opportunities.'

CSCEC was the biggest construction company in the world and the order books of New Zealand construction firms were full, he said.

'We need as much labour and expertise as we can get.'

Wellington Regional Economic Development Agency business growth and innovation general manager David Jones said there was significant potential for the region to reap economic benefits.

'A well connected international airport will bring tourism and business opportunities. The more flight connections to Wellington, the better.'

CSCEC president Wang Xiangming said the company was largest constructional company and home builder in the world, working in 46 countries, on big projects in New York, London, Australia and Singapore.

It started working in New Zealand in 2015 and currently had two developments - a 'super high-rise' apartment block in Auckland and a hotel, he said.

His company was actively looking for a new round of infrastructure projects in New Zealand and would also like to help develop the 'economy around the airport'.

China Express vice president Qui Ke said the company was serious about its objectives and was confident it could achieve its job of attracting Chinese tourists.

'I want to assure you, our company will perform its contract, and with your help, we will open the front door.'

Collette Devlin travelled to China with assistance from the Asia New Zealand Foundation.