Sodexam: Managing The Airports in Côte d’Ivoire

Interview with Georges Philippe Ezaley, General Director of Sodexam

What is the current state of Ivorian air transport and what are the principal opportunities in the sector?

The country has just come out of a long crisis in regards to national transporters, which has had an impact on the Côte d’Ivoire. Nowadays the Côte d’Ivoire does not have a national air carrier, which greatly affects its relationship with other countries. Therefore, it is with international air carriers that Ivorians travels within the Côte d’Ivoire and around the world. This is not a normal situation however, it is one that will soon be changed due to the creation of a new national air carrier in early 2012 with the help of Ivorian private sector partners and Air France.

Côte d’Ivoire, especially Abidjan, is seen as an important trade partner due to its strategic geographical position and also because of its economical strength. This ensures strong ties with other countries’ air carriers.

Between 1996 and 1999, the National air carrier had attained a level of several millions of passengers in the Abidjan International Airport. However, due to the events following 1999, the passenger quota dropped drastically up until in 2010, the number resurged to 600 000 passengers. The issue of national air carriers has known many ups and downs throughout the years however, it still has the potential to develop into a strong asset for the country. It is necessary to know about the relationship between airports and national companies in order to fully develop air carriers within Côte d’Ivoire.

Can you tell us a little bit more about Sodexam and what are the projects regarding the Abidjan International Airport and all other airports?

The Côte d’Ivoire has developed an important network of airports. This network was once part of a group called the NAM, which included the Abidjan airport. It turned out that the aviary activities were not important enough to maintain the group therefore, in 1996, the nation decided to keep the Abidjan International Airport and to leave the public network and enter the private sector, in order to ensure the development and modernization of the airport, as well as to protect their investment. This allowed the AERIA (Abidjan International Airport) to be created.

After these events, there were still many airports that needed to be taken care of therefore, the State created Sodexam (Society for exportation and development of airports in Côte d’Ivoire). Sodexam has the principle responsibility of managing the airports in Côte d’Ivoire, outside of Abidjan, which is considered as being part of the private sector. The Sodexam also has the role of managing the National Weather System, which is what explains the presence of the “m” (meteorology) in Sodexam.

The Nation also conferred to Sodexam the role of supervision over the AERIA which controls the Abidjan airport. Sodexam is therefore the representative of authority for the Abidjan airport. All the development of Abidjan that has occurred since 1996 up until now was made under the supervision of Sodexam.

The AERIA had planned to build a new terminal, repair the runway and create a new parking lot between 1996-1999. The concession of the Abidjan airport was initially set to be 15 years long, from 1996 to 2011 however; the new concession, once re-discussed, was stretched out over 20 years instead. This program was estimated at around 80 billion US dollars, which was proposed to AERIA as an investment towards the Abidjan airport.

Concerning the projects of other airports, there is the fact that in order to ensure the security of national and domestic services, a program of standardization and development of internal airports was created. This program is about the upgrading and restoration of all airports. Sodexam also has specific projects regarding certain airports.

For example, in San Pedro, in addition to the current airport, which has limited capacities, the construction of a new international airport is planned. This project was proposed after investment groups had shown interest in building hotels in the South West seaside region of the country, which is considered to be the most beautiful part of Côte d’Ivoire.

Regarding Yamoussoukro, the project is one of development of an international airport with a 3000 meter runway in order to turn the current airport into the capital of the country. In Bouaké, the plan is to make the airport specialize in freight and cargo shipping because of its geographical position, and create a multimodal zone. The airport of Man would also be an interesting project, which would encourage tourism in that area of the country. The same can be said for the airport in Korobo.

In this frame of mind, is there a need for aid or technical support and how do you approach financing?

These are project that demand several tens of billions of US dollars which cannot be covered immediately therefore, there is need for investment. For Yamoussoukro for example, the files are ready to be looked over by investors with the help of the State, which takes care of all finance matters.

All these infrastructures belong to the State therefore, it is it that will ensure the financing of airport infrastructures. This is important because some of the airports are not seen as being profitable in terms of traffic however, they do participate in the economical activities of the region, security, tourism etc. It is important to note that, concerning the Abidjan airport Sodexam is in charge of the project of modernization and development of the freight terminal.

The passenger terminal was taken care of by the AERIA. The State then, directly through its the economical infrastructures, received the funds from buyers so that in a time frame of 2 years, the Abidjan airport would have completely renovated the freight and passenger areas.

Soon, a center for aviation and related trades will be opened within the Abidjan airport as well as a medical center of aerospace. This was made for all of the aerospace workers such as pilots and air controllers who regularly need to have their licenses renewed through medical checkups.

Up until recently, the pilots used to have to go to Europe to have their licenses renewed however, within the next 10 days, the new accredited medical center will be inaugurated within the Abidjan airport, completely sponsored by Sodexam.

Sodexam asked during the second convention that AERIA work towards tertiary development that is, to turn the Abidjan airport into an airport city. Upon leaving the airport, it is clear that there is nothing of interest on the way to the city. There is a stretch of land where urban planning is possible in the form of hotels and restaurants, which would be supervised by Sodexam.

How can you be sure that the investors will receive a return on their investments? What are the guaranties regarding their investments?

Since 1999, the country has known incredible difficulties however, the economy is looking up at the moment. Even though this ten year crisis was ended with the aid of ‘transparent’ elections, there is post-election crisis that prolonged the difficulties in the country. Even saying so, security-wise there is a clear improvement in the situation in regards to before.

Within three years, we can predict that the country will explode onto the international scene. There are still some things to do before the country is up to par however, investors should feel comfortable as it is important for them to invest at an early stage rather than later.

The hardest times for the country have past and now it is possible to look forward to the future. In regards to investors, Sodexam is able to reassure them. The country will engage itself into processes so that by next year, there will be some potential for the State to borrow in order to face all of the reconstruction. The Côte d’Ivoire in fact a very credible country.