New era as private operator runs airport

Private investors formally took control of Hedland’s airport on a 50-year lease last Friday following a signing ceremony in Perth.

The ceremony completed a seven-month handover period since Town of Port Hedland councillors approved the $205 million deal last August.

It also cleared the Port Hedland International Airport Group of Companies to begin managing the airport’s operations, improving its terminal and airfield infrastructure and generating a profit from the facility.

Town of Port Hedland Mayor Kelly Howlett said the day marked the beginning of a new era.

“(I) look forward to witnessing (the) ... enhancement to the terminal and aeronautical infrastructure, as well as higher levels of customer service and amenity,” she said.

PHIA Group chairman Cheryl Edwardes promised her team would transform the airport’s facilities during the early years of their contract.

Yet even as the ink dries on the deal, community members continue to debate its merits with some councillors last month publically stating they wanted to pull out of the lease.

Supporters say one of the deal’s major benefits is the experience private consortium leaders AMP Capital and Infrastructure Capital Group have in infrastructure, having already invested in other Australian airports and even major sports stadiums.

Former WA Attorney General Cheryl Edwardes will head up PHIA Group’s management team as chairman with former Karratha airport boss Mitchell Cameron stepping into the chief executive’s seat.

Airport users hope this business know-how can breathe new excitement into an airport terminal that is tired and worn out and help convince airlines to lower their airfares and develop new routes in-and-out-of the Pilbara.

Yet they will also be watching to see whether car parking and other customer charges ramp up in the wake of the privatisation.

Followers of the Town’s finances meanwhile are still waiting for more information about how the local government manages its once-in-a-generation $165 million cash income from the 50-year deal.

The Town hopes $160 million can be placed into a wealth fund that generates almost $400 million in returns over the next 50-years.

However, critics worry the money will run out before the end of the 50-year lease, especially as the loss of income from airport fees and charges and nearby mining camp leases leaves the Town with an around $8 million hole in its annual budget.

Permanent airport employees have reportedly all been offered continued employment with the PHIA Group.