NYC’s LaGuardia Airport Transformation Takes Off
New York City’s LaGuardia Airport will be transformed into a world-class facility. Skanska, as a member of LaGuardia Gateway Partners (LGP), has finalized the public-private partnership (PPP) agreement to redevelop LaGuardia’s Central Terminal B. This is the biggest U.S. PPP for new transportation infrastructure and Skanska’s largest-ever project.
With this assignment, LaGuardia Gateway Partners is financing, designing, constructing, operating and maintaining a new 35-gate, 1.3 million-square-foot (nearly 121,000-square-meter) Terminal B through 2050. LGP is also operating the 52-year-old existing facility until the new terminal is online, which will occur in phases between 2020 and 2022.
The agreement with the Port Authority of New York and New Jersey also includes constructing a new central entrance hall and supporting infrastructure.
PPPs expedite critical infrastructure
“We are proud to invest in and lead construction of this project that will improve the quality of air travel for millions of people,” says Johan Karlström, Skanska AB CEO. “The LaGuardia Airport Central Terminal B project is a perfect example of how we, through public-private partnerships, can expedite delivery of critical infrastructure through Skanska’s construction and investment capabilities.”
Skanska is a global leader in PPPs, having delivered more than 30 PPP projects in the three sectors in which we are active: transportation, accommodation/social and utilities.
A terminal for New York
For the more than 14 million passengers who use Central Terminal B annually, the new facility will provide a world-class customer experience that reflects New York’s vitality. Unique dual pedestrian bridges over active aircraft taxi lanes will provide sweeping views of the Manhattan skyline, while helping reduce airport delays by enabling improved airplane circulation and gate flexibility.
The new terminal will redefine the LaGuardia experience in other ways. Natural light will be abundant on all levels, and there will be plentiful food, retail and beverage options. Even more, passengers will have a short walk from the curb to their gate, where they will find comfortable and large seating areas. With airports both premier gateways and economic engines for cities, Skanska’s leading role in remaking LaGuardia is powerful example of how we Build for a Better Society.
Uninterrupted flight operations
Skanska’s design-build joint venture has begun construction. The new terminal is being built adjacent to the existing terminal, while flight operations continue without interruption at LaGuardia, one of three major airports in the New York City area.
Our team is executing this project in phases, which have been scheduled to minimize disruption of ongoing airport operations, accelerate the delivery of the new terminal and reduce construction cost. Most of the new terminal will open in 2020, with substantial completion during 2022. The project is expected to achieve LEED Silver environmental certification.
LaGuardia Gateway Partners is comprised of Skanska, Vantage Airport Group and Meridiam as project sponsors and co-investors, with Vantage managing operations. Skanska and Walsh form the design-build joint venture, with HOK and WSP Parsons Brinckerhoff advising on the design.
Skanska has, as a member of LaGuardia Gateway Partners, reached financial close and executed a lease agreement with the Port Authority of New York and New Jersey (PANYNJ). The Public Private Partnership (PPP) includes finance, design, construction, operation and maintenance of the LaGuardia Airport Central Terminal B in New York City, USA, with a lease term through 2050. The agreement also includes construction work for supporting infrastructure and a new central entrance hall.
The contract is the biggest ever for Skanska. The value of the design/build contract amounts to a total of USD 4 billion, about SEK 33 billion. Skanska has a 70 percent share of the contract, worth about USD 2.8 billion, about SEK 23 billion. The amount will be equally divided between Skanska USA Building and Skanska USA Civil and included in the order bookings for the second quarter 2016.
The project will be financed using equity, debt, PANYNJ milestone payments, retail- and airline revenues. As a 33.3 percent shareholder of LaGuardia Gateway Partners, Skanska’s equity investment will be about USD 70M, about SEK 580M.
“This is Skanska’s largest project ever. We are proud to invest in and lead construction of this project that will improve the quality of air travel for millions of people. The LaGuardia Airport Central Terminal B project is a perfect example of how we, through Public Private Partnership, can expedite delivery of critical infrastructure, bringing together Skanska’s construction and investment capabilities. We have a strong position in the growing US market for PPP projects,” says Johan Karlström, CEO and President of Skanska.
Construction of permanent works will begin immediately, with most of the new terminal opening in 2020 and substantial completion during 2022.
Opened in 1964, Terminal B today serves more than 14 million passengers annually. The new LaGuardia Central Terminal B will be built adjacent to the existing terminal, while flight operations continue without interruption. The new design, expected to achieve LEED Silver Certification (Leadership in Energy and Environmental Design), exemplifies New York through two sweeping concourses that provide views of Manhattan and enable increased airline circulation.
Skanska Infrastructure Development is a leader in the global Public Private Partnerships (PPP) market. The business unit invests in, develops and operates roads, hospitals, schools, power plants and other social infrastructure in partnership with the public sector.
Skanska USA is one of the leading development and construction companies in the country, consisting of four business units: Skanska USA Building, which specializes in building construction; Skanska USA Civil, specialized in civil infrastructure; Skanska Infrastructure Development, which develops public-private partnerships; and Skanska USA Commercial Development, which develops commercial projects in select U.S. markets. Headquartered in New York, Skanska USA has more than 10,000 employees and its 2015 revenues were USD 7.1 billion or SEK 54.5 billion.