TAV Construction : Building the Aviation Launchpad

July 31, 2012 in Construction

Across the region construction projects have rapidly changed the skyline in a meteoric rise. The same can be said of several companies that have played a significant role in developing infrastructure One area of rapid growth across the Middle East has been aviation, which perfectly complements the skills and experience of TAV Construction, which in fifteen short years has morphed from a business focussed purely on Turkish developments, into a key construction force across the region.

330867With more than US$ 10.4 billion in project values, TAV Construction has rapidly become Turkey’s undisputed leader in the sector. Featuring futuristic and ultra-modern airports which are both functional and aesthetically pleasing, TAV has distinguished itself by its excellence, high-calibre work enthusiasm and ambition.

The company effectively came into being in 1997, with the construction of the new Istanbul Atatürk International Airport project. After being awarded the BOT (Build-Operate-Transfer) tender for the new international airport terminal and multi-storey car park in 1997, the TAV Group Company was formed by Tepe Construction and Akfen Holding as a joint venture.

The fledgling company’s first priority was the completion of the new Istanbul airport construction, financing, passenger terminal operations and related consulting and management services. The state-of-the-art airport development was completed in only 22 months, eight months ahead of the schedule set by the employer.

However, it was already apparent that the aviation sector – both domestically and internationally, was going through an exceptional period of growth, which offered TAV Construction a raft of fantastic opportunities beyond Istanbul.

16642282With great demand for new airports built to the highest standards and using the latest technology, the founders of the business decided to establish TAV Tepe Akfen Yatırım İnşaat ve İşletme A.Ş., (TAV Tepe Akfen Investment Construction and Operation JSC-or, in short, TAV Construction) in 2003 as a spin-off of TAV Havalimanları Holding A.Ş.

The primary goal for the new business was to become the leading brand in airport construction in the region. Today TAV Construction operates seven branches and two subsidiaries outside of Turkey.

The Middle East has become a boom area for airport construction and in recognition of this TAV Construction has opened branches in Abu Dhabi, Sharjah and Dubai. Building on its initial project (in 2004) to construct steel roof hangars in Dubai for Emirates Airlines’ A380 airliners, TAV Construction has completed a number of other projects in the Gulf, including a 79-storey residential tower in Dubai Marina, a 52-storey tower in Sharjah, a large shopping mall and school in Dubai and a 30-storey twin tower in the DIFC. At present the company has a portfolio that includes three high-rise towers set to dominate the skyline for the foreseeable future.

The business has also established a branch in Egypt, following a successful bid to construct Cairo International Airport’s new terminal. The branch was registered in December 2004.

In April 2006 TAV Construction also established a presence in Qatar, having been awarded the tender to build the New Doha International Passenger Terminal Complex. The following year saw further rapid growth with the opening of further branches in Tunisia, where in 2007, the company was awarded a contract to build the Enfidha Hammamet Airport Construction Project; in Libya, where work began on the New Tripoli International Terminal Buildings Project; and in Bahrain. The business opened a seventh branch in Macedonia in April 2010, having won contracts to build the Skopje Alexander the Great International Airport and renovate the Ohrid St. Paul the Apostle.

In July 2009 the company launched TAV Muscat LLC, having been awarded an Infrastructure Works Package for MC1 of the Muscat International Airport. Growing demand for construction in Qatar saw the formation of TAV Qatar LLC, with TAV Construction Doha LLC established in March 2010.

58544575Today the MENA region is responsible for roughly 90 per cent of TAV Construction’s activities and the GCC area accounts for 67 per cent of business. In total the company operates thirteen airports globally, with three of these located in the MENA region, including a flagship at Prince Mohammad Bin Abdulaziz International Airport, the first fully-fledged PPP project in the GCC.

Of course with growth comes reputation and TAV Construction continues to go from strength to strength, with recent success including a successful integrated joint venture bid (with Arabtec and CCC) for the Midfield Terminal Building at the Abu Dhabi International Airport.

The Abu Dhabi Airports Company (ADAC) and the JV signed a $2.9bn contract for the construction of the 700,000m² terminal building, one of the world-class infrastructure project; with work set to begin in Q3 2012, with the opening planned for 2017.

The project will include two key phases: the four-year construction phase, followed by a nine-month period of testing to ensure that the terminal is ready for passengers.

The construction phase will also see the development of the surrounding area which will support the required infrastructure and facilities. Among the planned projects will be the construction of aircraft parking stands, terminal roadways, connecting roads to Abu Dhabi/Dubai highway and utility plants. Procurement for these projects is currently underway to ensure delivery in phases between 2014 and 2016.

This project is set to last just over four years and highlights TAV Constructions ability to assemble a highly technical project team, experienced in handling each job on its own merits. The Midfield Terminal will call on maintenance skills but the team also intends to assert rigorous health and safety measures designed to produce a zero-accident project.

93337912Last year saw TAV Construction makes it first inroads into Saudi Arabia, when a consortium led by TAV Airport Holding and partners Al Rajhi Holding and Saudi Oger, won a tender for the PPP expansion of the Medina Prince Mohammad Bin Abdulaziz International Airport. The first phase of this project will be carried out by TAV Construction-Al Arrab Contracting Company JV and will see the construction of a new terminal, ancillary buildings and the upgrade of the runway-apron-taxiway.

Another joint venture with Al Rajhi Holding and the Habtoor Leighton Group, saw further success in the Kingdom when it was awarded $800 million contract for the design and build of Saudi Aerospace Engineering Industries’ Aircraft Maintenance Repaid and Overhaul facility.

As TAV Construction has grown across the Middle East, it has maintained a workforce highly attuned to the demands of high quality and stringent health and safety expectations. That experience extends to managing staff and labourers – who often speak different languages – on major projects – and delivering these on time.

Airports in the region look set to enjoy further growth; the International Air Transport Association (IATA) records show there were 2.8billion airline passengers in 2011, and IATA expects this figure to jump to 5.9billion by 2030. Much of this demand is down to China and India and the GCC countries are well positioned to link east and west. That is good news for the region, for its airports – and for TAV Construction.