The Trump administration’s 1 trillion-dollar infrastructure plan has brought much attention to how infrastructure projects will be carried out in the coming years. As anticipation for updating and fixing the outdated transportation infrastructure - including the nation’s airports - grows, many think that Public Private Partnerships (P3) could be the solution. Often capital improvement projects are challenging, given that most projects are costly, and the financial situation of the public sector tends to be constrained in capital to use in these projects.

 

There have been cases of airport redevelopment using P3 in the U.S., in which the private sector plays a role in managing, operating and financing airport facilities. For example, the LaGuardia Airport Terminal B project in New York is a major private investment in America’s infrastructure.

 

In Japan, airport governance reforms using P3 are being used to maximize operational efficiency under a unified strategy of airport management by introducing long term concession agreements. For example, Sendai Airport started private operation in 2016, and various airports are expected to have operations by their selected concessionaire, such as Fukuoka Airport, as well as 7 major airports in Hokkaido.

 

For this workshop, JITI has invited experts of airport management from Japan and the U.S. to discuss the challenges and benefits of P3 in airport redevelopment, lessons learned, and important takeaways for applications on future airport infrastructure projects.