KLIA main terminal requires expansion, says MAHB

KUALA LUMPUR: Malaysia Airports Holdings Bhd (MAHB) is still in discussion with the government for the expansion of the main terminal at the Kuala Lumpur International Airport (KLIA).

Speaking in an interview with NSTP Business, MAHB managing director Datuk Badlisham Ghazali said the details have yet to be ironed out, especially on the capital expenditure (capex) and who would bear the cost.

“KLIA terminal expansion is something we look forward to discuss with the government. KLIA requires expansion as it is now over its 30 million-passenger per year capacity,” he said.

All airport expansion programmes are now funded by MAHB, except at the main KLIA terminal.

“Our regulator, the Malaysian Aviation Commission (Mavcom), had introduced a mechanism called regulated asset base (RAB) that would help MAHB to predict when, how and who to pay as well as the returns on the investment to be made for the terminal’s expansion,” he said.

Under the RAB framework, MAHB’s return on invested capital must not exceed its weighted average cost of capital.

The expansion plan is expected to boost capacity up to 65 per cent, or 20 million passengers, and handle 50 million passengers in the next three years.

Badlisham said the main terminal contact pier’s left and right wings expansion will be executed in phases.

“This project will be broken down in packages. The expansion of contact pier at KLIA main terminal will start late next year,” he added.

Badlisham said the optimisation work for KLIA and all airports under its management was an urgent matter.

MAHB’s would be allocating up to RM600 million for the optimisation works that involves baggage-handling system and aerotrain upgrade works, he added.

Badlisham said it would take two years to improve the inbound and outbound baggage-handling system.

He said it would cost MAHB between RM250 million and RM300 million to replace the aerotrains.

“Currently, MAHB handles the maintenance and overhaul of the aerotrains. We expect to replace the aerotrains beginning 2021.”

Badlisham said MAHB will also be launching its airside connectivity facility between KLIA and Klia2, which will be in service by year-end.

MAHB had also started its upgrade on KLIA’s security features, allowing smoother passengers flow through security checks with better ancillary equipment.