SINGAPORE: In about 15 years time, travellers transiting through Singapore can look forward to a brand-new mega-terminal.
Analysts say the new Terminal 5 at Changi Airport is aimed at retaining Singapore’s edge as a regional aviation hub and meeting growing passenger volume needs.
They say the new super-sized terminal — which will handle 50 million passengers per year and is expected to be in operation by the mid-2020s — is in time to cope with the growing passenger flow.
Passenger traffic movements at Changi Airport totalled 51.2 million in 2012, crossing the 50 million threshold for the first time in the airport’s 31-year history.
Paul Ng, the global head of aviation at Stephenson Harwood, said: “Changi Airport has enjoyed double-digit growth in the last three years. And even with the more modest forecast going forward, I think the expectation is that growth will be around 8 per cent, at least for the next half a decade.
“With that kind of growth, you would need more runways and more terminal space. So Terminal 4, which is expected to come into service in 2017, would just meet an 8 per cent growth rate at Changi Airport. If you continue that trajectory, they would need a Terminal 5 by 2020.”
Changi Airport is renowned for being the best in the world, and it wants to stay that way.
The proposed Terminal 5 development will essentially be a new airport all on its own, and will effectively double the airport’s capacity to handle over 130 million passengers per year.
Analysts say the new terminal is about staying ahead of the pack, as well as operational necessity.
The decision by Qantas to re-direct its signature kangaroo route from Singapore to Dubai in March this year has sparked concerns about Singapore’s future competitiveness as a regional and global aviation hub.
And it is not just airports in the Middle East. Neighbouring Asian airports are also snapping at Changi’s heels.
Paul Yong, the vice president of equity research at DBS Vickers Research Securities, said some regional airports such as Bangkok, Kuala Lumpur and Hong Kong already have plans beyond 2020 to expand their operations.
“For example, KLIA plans to expand its capacity to handle 100 million passengers by 2020, and Bangkok, 120 million passengers by 2024,” he said. “So, this move by Changi Airport to think beyond 2020 is actually quite good in terms of its timing. Generally I think everyone has gone for a big bang sort of plan.”
The cost for the latest ambitious expansion has not yet been revealed. But since the bill for the airport’s Terminal 3 project came to S$1.75 billion, experts estimate the cost of building Terminal 5 will run into the billions.
Changi"s T5 to retain Singapore"s edge as regional aviation hub
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