A consortium consisting of JALUX Inc. (JALUX), Mitsubishi Corporation (MC), and SPA Project Management Ltd. (SPA), a company incorporated in Myanmar, has been granted a Rights of First Refusal contract from the Government of Myanmar for rehabilitation and improvement and a 30-year term for managing operations at Mandalay International Airport, located in the Mandalay Region of Myanmar.

 

 

Located roughly in the center of Myanmar, Mandalay Airport serves as a domestic aviation hub, with routes connecting 12 major cities across the country. Passenger traffic at the airport is currently seeing an annual growth of 20%, servicing 80,000 international and 500,000 domestic passengers in 2012. Further increases in passenger demand are expected given the acceleration of industrial activities and increases in tourism in Myanmar.

 

Combining the strengths of the private sector, based on the experiences of JALUX, the only Japanese company with experience operating airports overseas, and MC’s know-how in the rehabilitation/improvement of airport facilities with the strengths of public sector that DCA’s experience in the operation of airports in Myanmar brings to the table, this PPP (Public-Private Partnership) will enable Mandalay Airport to better accommodate the passenger increases projected for the future.

 

Drawing on the experience gained from this project, JALUX and MC aim to continue expanding their infrastructure-related business, ranging from the construction of airport facilities to the management of airport operations, particularly in developing countries where demand in the aviation market is expected grow.

 

Should pending negotiations with the Government of Myanmar result in a concession, the consortium will work together with Myanmar’s Department of Civil Aviation (DCA), the current operators of the airport, to establish a new company. Management of the airport will subsequently fall under the purview of the newly established company.

Reference Information (Company Outlines)

 

1.    Mandalay International Airport

(1) Location:                   Myanmar / Around 40km south of the Mandalay city center

(2) Passenger:                Around 580,000 p.a. (International: 80,000 passengers /

                                     Domestic: 500,000 passengers)

(3) Characteristic:           Main hub for domestic air traffic in Myanmar. .

 

2.    JALUX Inc. (listed on the first section of the Tokyo Stock Exchange, Securities Code: 2729)

(1) Established:               March. 28, 1962

(2) Representative:         Representative Director & CEO, Akinobu Yokoo

(3) Capital:                      2,558,000,000 yen

(4) Major Business:         Wholesale Trade, Aviation-related business,

                                     Media & Life Service Business, Retail Business,

                                     Food & Beverage Business

(5) Homepage:                http://www.jalux.com/

 

1.    Mitsubishi Corporation(listed on the first section of the Tokyo Stock Exchange, Securities Code: 8058)

(1) Established:               April 1, 1950

(2) Representative:           President and CEO, Ken Kobayashi

(3) No. of Employees:      65,975 (including all its consolidated subsidiaries as of Mar. 31,2013)

(4) Major Business:          Mitsubishi Corporation has seven Business Groups which

                                      develop operations in the diverse fields of Global Environmental

                                      & Infrastructure; Industrial Finance, Logistics & Development;

                                      Energy; Metals; Machinery; Chemicals; and Living Essentials.

                                      MC has also established a Business Service Group.

(5) Homepage:                 http://www.mitsubishicorp.com