The control of private airports in Latin America is governed by the giant Corporación América, but at a declining point there are several other corporations. These corporations are run by Brazil’s CCR, which is primarily a road and rail operator that specializes in toll roads, but has built a giant portfolio of airports, basically in Brazil, in recent years.
As Brazilian airport concessions succeed in completing the runway, CCR has said it needs to spread its wings across the continent, where it already owns a handful of airport assets, and has been in talks with potential collaborators who could co-invest in its existing assets or acquire new ones; or both.
With plenty of fruit already available and fed in the region, that’s how ambitious CCR and its collaborators are.
summer
CCR (formerly Companhia de Concessões Rodoviárias, but now operating in the airport sector under the so-called Companhia de Participação em Concessões, as a subsidiary of CCR) operates 19 airports in Brazil and to obtain more airport concessions in Latin America.
Two U. S. infrastructure funds are reportedly in the U. S. A U. S. government, a Middle Eastern fund and a French investor approached CCR to co-invest or obtain some of its airport concessions.
CCR is a toll road operator based in São Paulo, the largest highway operator in Latin America and one of the largest personal infrastructure teams in the world.
CCR is owned by Camargo Corrêa (17. 00%), Andrade Gutierrez (17. 00%) and Soares Penido (17. 22%), plus a loose (48. 78%).
He has stakes in personal concessions of interstate highways and the subway formula in Brazil and other countries, outside of airport operations. It operates approximately 3,000 kilometers of toll roads.
The corporation controls nine subsidiary concessionaires, which are operating under a public-private business style for the operation of toll roads, with the aim of centralizing control of a portfolio of toll concessions and service companies.
The corporate operates the Belo Horizonte International Airport (also known as Tancredo Neves) in the “Aeropuerto BH” consortium with: Flughafen Zürich, Quito’s Mariscal Sucre International Airport from Corporación Quiport S. A, San José International Airport in Costa Rica and Curacao International Airport.
BH Airport paid handsomely to offload the Belo Horizonte concession: a multiple of 35. 7 times the profits, this is quite small compared to the Changi/Odebrecht International Airports deal for Rio de Janeiro Galeão Airport (178. 7 times the profits, well above global earnings). criteria through about 20 times, even taking into account the peculiarities of the Brazilian accounting system).
Then, on April 7, 2021, CCR won the concession to operate for 30 years the following airports in Brazil: Curitiba-Afonso Pena International Airport, Curitiba-Bacacheri Airport, Foz do Iguaçu International Airport, Londrina Airport, Navegantes Airport, Joinville-Lauro Carneiro de Loyola Airport, Pelotas International Airport, Ruben Berta International Airport (Uruguaiana), Bagé-Comte International Airport. Gustavo Kraemer, Goiânia-Santa Genoevava Airport, Palmas Airport, Teresina Airport, Petrolina Airport, São Luís-Mal. Cunha Machado International Airport and Imperatriz Airport.
The airports are in two blocks.
The South Block was sold for BRL 2. 1 billion (sale value of $413. 7 million) and the Central Block for BRL 754 million (sale value of $148. 6 million).
CCR’s offer included an initial investment of BRL 754 million (USD 133. 2 million), with investment plans estimated at BRL 1. 8 billion (USD 318 million) over the 30-year concession term.
This agreement makes it one of the largest airport operators in Latin America, surpassed only by Corporación América, with its 53 airports, adding 35 in Argentina, although AENA Internacional is reaching it (16 airports) thanks to an agreement it has just signed.
Both organizations are classified as “top investors” in the CAPA Global Airport Investors database, two of six investors in Latin America.
Then, on October 5, 2021, CCR S. A. won a 30-year concession to operate Andrade’s Belo Horizonte/Pampulha-Carlos Drummond Airport, becoming the sole or joint operator of the two airports in Brazil’s fifth largest city.
Brazil’s Minas Gerais company has awarded Companhia de Participação em Concessões (CCR) a BRL 34 million (USD 6. 2 million) contract for the Belo Horizonte Pampulha Airport concession.
CCR plans to invest BRL 151 million (USD 27. 6 million) over 30 years – BRL 65 million (USD 11. 9 million) will be invested in the first 3 years, in projects that will come with the construction of a terminal and taxiway and the renovation of the runway Federal, state and municipal taxes during the concession era are estimated at BRL 99 million (USD 18. 1 million).
Pampulha airport is a small fish for Tancredo Neves.
In 2019, it received only 180,000 passengers for 11. 1 million at Tancredo Neves, and had been in permanent decline for a decade. This means that it has been slightly affected by the COVID-19 pandemic and there has been some expansion in the first few months. of 2022, the most recent figure available.
Concerns had been raised about the Brazilian government’s resolution to give the Pampulha airport in concession in addition to the former Tancredo Neves airport (also known as “Confins”) through the concessionaire, but in the end this resolution ended up being the same.
The very fact that CCR has made an offer for the South and Central blocks and the Pampulha airport is indicative of how the Brazilian concessions have reached their herbal conclusion, with only the Santos Dumont airports in Rio de Janeiro being important (São Paulo Congonhas recognized AENA at the end of March 2023). With the concession of Rio’s Galeão airport and its concessions, which were anyway suspended by the new “Lula” government.
So which direction is the JRC most likely to take?
The recommendation that investors who approached CCR did so in part with respect to co-investment at certain airports would possibly suggest that CCR is not satisfied with some of the deals it has reached in Brazil and would be willing to share the burden with the investor.
It would not be the only company to express its discontent, basically for the value extracted by the government in the face of the lack of expansion in the promised traffic, the government has made some repairs.
CCR’s external contracts date back many years to Brazil’s, which began in 2012 in Belo Horizonte.
The landscape has replaced much since then. In 2019, when Airports Council International conducted a survey, precisely two-thirds of air passengers in Latin America and the Caribbean traveled to totally or partially privatized airports, the rate of the moment in the world after Europe.
In other words, there is less virgin territory to target, with more listings or concessions, which are common on the continent if CCR chooses to expand its portfolio.
The Brazilian government would likely need to get the maximum price for the remaining two consecutive concessions and the Rio de Janeiro concession, if approved, and CCR might be deterred from launching unless it sees very clever reasons to do so in traffic. . and the monetary statistics of its existing airports there, the vast majority of which, of course, were acquired by the pandemic.
Presumably, the JRC would like to continue operating using the Portuguese language as much as one can imagine (there is always room for misunderstandings when using multiple languages in an agreement), but it is limited by the fact that Brazil is the only country in South America. Where Portuguese is the official language, although the language is spoken among minorities in several other countries.
On the one hand, there are 20 countries in Latin America where Spanish is the official language.
Portugal itself is banned, even though CCR’s ambition has gone so far: all airports advertised on the mainland and islands are granted to VINCI and operated through ANA Aeropuertos de Portugal.
Interestingly, in April 2012, CCR had concluded a Memorandum of Understanding with Portugal’s Brisa to identify a joint venture to evaluate and explore the opportunity to obtain and manage ANA, as a component of the privatization procedure announced through the Portuguese government. Brisa and CCR saw the privatization of ANA and the airport control industry as business opportunities that fell within their domain of expertise, resulting in joint cooperation.
African countries with Portuguese colonial heritage are another imaginable target, but few offer smart prospects.
The jewel is Cape Verde (for tourism), but it has already done so with VINCI, which has ceded its airports.
Angola may be only one possibility. In January 2023, the Angolan government will offer a 51% stake in its national airport company, as stated in this report: Angola will offer a 51% stake in the national airport company; China will at least be interested
Luanda’s new airport is expected to open later in 2023.
Interestingly, Corporación America targets African countries and is the bidder for Abuja and Kano airport concessions in Nigeria.
Nigeria would take a long time for Corporación America, as operating there may simply be a minefield. But even then, it’s turning a blind eye to its Latin American assets, which have accumulated over the years, with the exception of Brazil’s Natal airport. , where he ceded the concession.
Whatever attractions there are in the world, CCR will most likely feel more comfortable sticking to its own “patch” in Latin America and the Caribbean (as it has said), and where there are still some deals to be solved.
In Barbados, for example. Where a 30-year concession agreement for Grantley Adams International Airport was suspended in February 2021 due to the “new realities” of the airline industry, it was then resurrected in 2022 for a possible final touch in 1H2023.
The shortlist has not been replaced since the suspension of the procedure: there are 13, all formidable actors worldwide, and CCR is one of them, the Companhia de Participações em Concessões.
CCR will face a challenge, and this specific offering will mark its determination to expand its network in the region.
Meanwhile, in Colombia, the National Infrastructure Agency (NIA) plans to factor a request for proposals for a Design-Build-Finance-Operation-Maintenance (DBFOM) PPP concession to make El Dorado International, the country’s largest airport, primary in Bogotá. , the capital.
In January 2023, the NIA also submitted a tender for the concession of the Rafael Núñez International Airport in Cartagena. The deadline for submission of bids is May 2023, with a contract to be awarded in mid-2023, for an 8. 5-year concession. the investment of the works is COP 490 billion (USD 103. 44 million).
While this may not be the route CCR likes best, the Bahamian government has issued a tender for a company (or companies) to upgrade 14 “off-island” airports. islands. PPP grants will run for 30 years and shortlisted corporations will obtain formal requests for proposals in May 2023.
This small snapshot shows how there will be opportunities to expand a portfolio of airports in the Latin American and Caribbean regions.
What remains to be revealed is how enthusiastic CCR and any potential co-investors are about those opportunities, or whether CCR chooses to put discretion before value.
The control of private airports in Latin America is governed by the giant Corporación América, but at a declining point there are several other corporations. These corporations are run by Brazil’s CCR, which is primarily a road and rail operator that specializes in toll roads, but has built a giant portfolio of airports, basically in Brazil, in recent years.
As Brazilian airport concessions succeed in completing the runway, CCR has said it needs to spread its wings across the continent, where it already owns a handful of airport assets, and has been in talks with potential collaborators who could co-invest in its existing assets or acquire new ones; or both.
With plenty of fruit already available and fed in the region, that’s how ambitious CCR and its collaborators are.
summer
CCR (formerly Companhia de Concessões Rodoviárias, but now operating in the airport sector under the so-called Companhia de Participação em Concessões, as a subsidiary of CCR) operates 19 airports in Brazil and to obtain more airport concessions in Latin America.
Two U. S. infrastructure funds are reportedly in the U. S. A U. S. government, a Middle Eastern fund and a French investor approached CCR to co-invest or obtain some of its airport concessions.
CCR is a toll road operator based in São Paulo, the largest highway operator in Latin America and one of the largest personal infrastructure teams in the world.
CCR is owned by Camargo Corrêa (17. 00%), Andrade Gutierrez (17. 00%) and Soares Penido (17. 22%), plus a loose (48. 78%).
He has stakes in personal concessions of interstate highways and the subway formula in Brazil and other countries, outside of airport operations. It operates approximately 3,000 kilometers of toll roads.
The corporation controls nine subsidiary concessionaires, which are operating under a public-private business style for the operation of toll roads, with the aim of centralizing control of a portfolio of toll concessions and service companies.
The corporate operates the Belo Horizonte International Airport (also known as Tancredo Neves) in the consortium “BH Airport” with: Flughafen Zürich, Mariscal Sucre International Airport in Quito from Corporación Quiport S. A, San José International Airport in Costa Rica and Curacao International Airport.
BH Airport paid handsomely to offload the Belo Horizonte concession: a multiple of 35. 7 times the profits, this is quite small compared to the Changi/Odebrecht International Airports deal for Rio de Janeiro Galeão Airport (178. 7 times the profits, well above global earnings). criteria through about 20 times, even taking into account the peculiarities of the Brazilian accounting system).
Then, on April 7, 2021, CCR won the concession to operate for 30 years the following airports in Brazil: Curitiba-Afonso Pena International Airport, Curitiba-Bacacheri Airport, Foz do Iguaçu International Airport, Londrina Airport, Navegantes Airport, Joinville-Lauro Carneiro de Loyola Airport, Pelotas International Airport, Ruben Berta International Airport (Uruguaiana), Bagé-Comte International Airport. Gustavo Kraemer, Goiânia-Santa Genoevava Airport, Palmas Airport, Teresina Airport, Petrolina Airport, São Luís-Mal. Cunha Machado International Airport and Imperatriz Airport.
The airports are in two blocks.
The South Block was sold for BRL 2. 1 billion (sale value of $413. 7 million) and the Central Block for BRL 754 million (sale value of $148. 6 million).
CCR’s offer included an initial investment of BRL 754 million (USD 133. 2 million), with investment plans estimated at BRL 1. 8 billion (USD 318 million) over the 30-year concession term.
This agreement makes it one of the largest airport operators in Latin America, surpassed only by Corporación América, with its 53 airports, adding 35 in Argentina, although AENA Internacional is reaching it (16 airports) thanks to an agreement it has just signed.
Both organizations are classified as “top investors” in the CAPA Global Airport Investors database, two of six investors in Latin America.
Active airports for CCR SA
Source: CAPA – Aviation Center,
Then, on October 5, 2021, CCR S. A. won a 30-year concession to operate Andrade’s Belo Horizonte/Pampulha-Carlos Drummond Airport, becoming the sole or joint operator of the two airports in Brazil’s fifth largest city.
Brazil’s Minas Gerais company has awarded Companhia de Participação em Concessões (CCR) a BRL 34 million (USD 6. 2 million) contract for the Belo Horizonte Pampulha Airport concession.
CCR plans to invest BRL 151 million (USD 27. 6 million) over 30 years – BRL 65 million (USD 11. 9 million) will be invested in the first 3 years, in projects that will come with the structure of a terminal and renovation of taxiways and runways. Federal, state and municipal taxes during the concession era are estimated at BRL 99 million (USD 18. 1 million).
Pampulha airport is a small fish for Tancredo Neves.
In 2019, it received only 180,000 passengers for 11. 1 million at Tancredo Neves, and had been in permanent decline for a decade. This means that it has been slightly affected by the COVID-19 pandemic and there has been some expansion in the first few months. of 2022, the most recent figure available.
Belo Horizonte Pampulha Airport: annual passenger traffic/growth, 2012-2022
Source: CAPA – Centre de l’Aviation and INFRAERO.
Concerns had been raised about the Brazilian government’s resolution to give the Pampulha airport in concession in addition to the former Tancredo Neves airport (also known as “Confins”) through the concessionaire, but in the end this resolution ended up being the same.
The very fact that CCR has made an offer for the South and Central blocks and the Pampulha airport is indicative of how the Brazilian concessions have reached their herbal conclusion, with only the Santos Dumont airports in Rio de Janeiro being important (São Paulo Congonhas recognized AENA at the end of March 2023). With the concession of Rio’s Galeão airport and its concessions, which were anyway suspended by the new “Lula” government.
So which direction is the JRC most likely to take?
The recommendation that investors who approached CCR did so in part with respect to co-investment at certain airports would possibly suggest that CCR is not satisfied with some of the deals it has reached in Brazil and would be willing to share the burden with the investor.
It would not be the only company to express its discontent, basically for the value extracted by the government in the face of the lack of expansion in the promised traffic, the government has made some repairs.
CCR’s external contracts date back many years to Brazil’s, which began in 2012 in Belo Horizonte.
The landscape has replaced much since then. In 2019, when Airports Council International conducted a survey, precisely two-thirds of air passengers in Latin America and the Caribbean traveled to totally or partially privatized airports, the rate of the moment in the world after Europe.
In other words, there is less virgin territory to target, with more listings or concessions, which are common on the continent if CCR chooses to expand its portfolio.
The Brazilian government would likely need to get the maximum price for the remaining two consecutive concessions and the Rio de Janeiro concession, if approved, and CCR might be deterred from launching unless it sees very clever reasons to do so in traffic. . and the monetary statistics of its existing airports there, the vast majority of which, of course, were acquired by the pandemic.
Presumably, the JRC would like to continue operating using the Portuguese language as much as one can imagine (there is always room for misunderstandings when using multiple languages in an agreement), but it is limited by the fact that Brazil is the only country in South America. Where Portuguese is the official language, although the language is spoken among minorities in several other countries.
On the one hand, there are 20 countries in Latin America where Spanish is the official language.
Portugal itself is banned, even though CCR’s ambition has gone so far: all airports advertised on the mainland and islands are granted to VINCI and operated through ANA Aeropuertos de Portugal.
Interestingly, in April 2012, CCR had concluded a Memorandum of Understanding with Portugal’s Brisa to identify a joint venture to evaluate and explore the opportunity to obtain and manage ANA, as a component of the privatization procedure announced through the Portuguese government. Brisa and CCR saw the privatization of ANA and the airport control industry as business opportunities that fell within their domain of expertise, resulting in joint cooperation.
African countries with Portuguese colonial heritage are another imaginable target, but few offer smart prospects.
The jewel is Cape Verde (for tourism), but it has already done so with VINCI, which has ceded its airports.
Angola may be only one possibility. In January 2023, the Angolan government will offer a 51% stake in its national airport company, as stated in this report: Angola will offer a 51% stake in the national airport company; China will at least be interested
Luanda’s new airport is expected to open later in 2023.
Interestingly, Corporación America targets African countries and is the bidder for Abuja and Kano airport concessions in Nigeria.
Nigeria would take a long time for Corporación America, as operating there may simply be a minefield. But even then, it’s turning a blind eye to its Latin American assets, which have accumulated over the years, with the exception of Brazil’s Natal airport. , where he ceded the concession.
Whatever attractions there are in the world, CCR will most likely feel more comfortable sticking to its own “patch” in Latin America and the Caribbean (as it has said), and where there are still some deals to be solved.
In Barbados, for example. Where a 30-year concession agreement for Grantley Adams International Airport was suspended in February 2021 due to the “new realities” of the airline industry, it was then resurrected in 2022 for a possible final touch in 1H2023.
The shortlist has not been replaced since the suspension of the procedure: there are 13, all formidable actors worldwide, and CCR is one of them, the Companhia de Participações em Concessões.
CCR will face a challenge, and this specific offering will mark its determination to expand its network in the region.
Meanwhile, in Colombia, the National Infrastructure Agency (NIA) plans to factor a request for proposals for a Design-Build-Finance-Operation-Maintenance (DBFOM) PPP concession to make El Dorado International, the country’s largest airport, primary in Bogotá. , the capital.
In January 2023, the NIA also submitted a tender for the concession of the Rafael Núñez International Airport in Cartagena. The deadline for submission of bids is May 2023, with a contract to be awarded in mid-2023, for an 8. 5-year concession. the investment of the works is COP 490 billion (USD 103. 44 million).
While this may not be the route CCR likes best, the Bahamian government has issued a tender for a company (or companies) to upgrade 14 “off-island” airports. islands. PPP grants will run for 30 years and shortlisted corporations will obtain formal requests for proposals in May 2023.
This small snapshot shows how there will be opportunities to expand a portfolio of airports in the Latin American and Caribbean regions.
What remains to be revealed is how enthusiastic CCR and any potential co-investors are about those opportunities, or whether CCR chooses to put discretion before value.