Industry Forum of LA Airport P3s attracts massive interest

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Industry Forum of LA Airport P3s attracts massive interest

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Approximately 900 executives from local, national and international companies have attended an Industry Forum for the projects to deliver a world-class transportation system to Los Angeles International Airport (LAX) through the estimated US$5 billion Landside Access Modernization Program (LAMP).

LAMP consists of four primary components: an Automated People Mover (APM) system, a Consolidated Rent-A-Car (CONRAC) facility, two Intermodal Transportation Facilities (east and west), as well as roadway improvements to enhance access to the proposed facilities.

The APM system will connect the Central Terminal Area (CTA) with the new CONRAC, with stops in between at new airport parking facilities and a station connecting to the Los Angeles County Metropolitan Transportation Authority regional transit system. 

The APM, which will be free of charge to all users, will consist of an elevated 2.25-mile-long guideway with six stations, pedestrian bridges to airport terminals, parking garages and fixed facilities. 

The CONRAC will accommodate rental car agencies currently serving LAX at one location adjacent to Interstate 405 San Diego Freeway.

After evaluating several different delivery methods, LAWA determined that the design, build, finance, operate, and maintain (DBFOM) method is best suited to deliver at least two elements of LAMP: the APM and CONRAC.

The capital cost estimates and concession duration for both elements are: 

  • APM: $2,150 million ‐ $2,500 million (30 to 35 years)
  • CONRAC: $850 million to $1,000 million (20 to 35 years)

The Request for Qualifications (RFQ) for the APM will be released in early Q2 2016 and the RFQ for the CONRAC project will be released in Q3 2016.

The future concessionaires of the projects will not support any revenue risk. It will get paid via milestone payments (during construction) and availability of specified performance (during operation). LA Airport plans to use its own cash reserves, its potential revenue and a bond issue to make the payments.

TIFIA loans are not expected to be available for the project. However, the airport expects to use Private Activity Bonds for the APM package.

Proposed construction duration of the APM and CONRAC will be from 2017 to 2023

City Councilmember Bob Blumenfield, chairman of the Los Angeles City Council’s Innovation, Grants, Technology, Commerce and Trade Committee, which oversees the airport, stated:

“The Landside Access Modernization Program is designed to transform the passenger experience at LAX, linking the airport to the City, its attractions, and destinations like never before. Today we were proud to host potential partners to help make our vision a reality in a way that is environmentally sustainable, fully transparent, and respectful of the surrounding communities.”

Mayor Eric Garcetti commented:

"LAX is our gateway to the world — and by finally bringing rail to the airport, Angelenos and tourists will be able to connect to Los Angeles' world-renowned neighborhoods and attractions without ever stepping foot in a car. LAMP will transform how L.A. thinks about travel, and get people in and out the airport faster and more conveniently."

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