• Construction of Iraklio airport in Kastelli Pediados

    by  • 20 January, 2011 • News • 8 Comments

    Airport Iraklio Crete in Kastelli PediadosOn Friday, January 21, 2011, after three consecutive delays, the Greek Ministry of Infrastructure (YPOMEDI), is reportedly ready to approve the concession contract and to officially start the process of selecting the contractor for the construction of the new Heraklion airport and its management over 35 years. If this deadline is met and YPOMEDI issues the definitive text of the concession contract next Friday, the contractor will be selected by the end of September. This is essentially the only major infrastructure project undertaken in Greece in the last two years and the government will have the pleasant ‘headache’ to pick between some of the most powerful consortia.

    The construction and operation of the new airport in Kastelli, Crete, is expected to evolve in a battle of European giants. The process for claiming the project brings together the largest construction companies, airport management companies and funds that invest in infrastructure development on the continent. At least four joint ventures have reportedly shown interest, involving major Western European construction companies, the most powerful domestic Greek groups, companies that manage airports in Europe, and funds that invest in infrastructure.

    The French group Vinci has formed a joint venture with Greek Ellaktor and with the company that manages the airport of Nice in France. There is also French Bouygues SA with J&P AVAX, and with the managing company of the airport of Paris, Aeroports de Paris Management. German Hochtief partners with GEK-TERNA and the Copelouzos Group. Finally, there is Dutch Archirodon Group (with Greek roots) together with Austrian Strabag SE and the company that manages the airport of Zurich.

    The consortia are likely to involve funds that invest in infrastructure development, and interest in the project is very high despite the financial crisis and the high risk reputation of Greece. Based on the studies conducted, 80% of the proceeds of the new airport will come from abroad, particularly from the major tour operators, as the airport attracts mostly charter flights. Therefore, country risk is drastically reduced. Estimated net profit for the contractor will exceed 3.5%, possibly even 4.5%, despite strong competition for the project, according to inner circles of domestic construction companies.

    You might also want to read the earlier article about the planning of the New airport Iraklio Crete in Kastelli Pediados of February 25th, 2009. Yes, that’s 2 years ago.

    8 Responses to Construction of Iraklio airport in Kastelli Pediados

    1. Pingback: New airport Iraklio Crete in Kastelli Pediados | Cretan Chronicles

    2. Pingback: should start from Grand Place,

    3. 8 January, 2013 at 19:30

      Oh, great idea for the independent traveller. Replace an airport a ten minute bus ride from the centre of the capital with one in the middle of nowhere. Fine for the package/car hire/taxi businesses. There’s a half-built international terminal at Sitia and Hania has only recently started increasing flights. Why not move the military?

    4. Nicholas
      20 February, 2014 at 15:48

      Warm regards from a greek in Brussels.
      I work as a lawyer for an International Organisation and I am responsible for the new Kasteli airport project getting an EU approval…. I stubled on your articles when independently researching the project.
      I love the way you write and wanted to congratulate you on your article.
      A lot of things remain to be checked.. in this case we are ensuring the local interests stay out of the project as much as possible…
      Hoping to stay in touch and eventualy receive your advice on my next relocation.

      • luc
        3 April, 2014 at 17:35

        “we are ensuring the local interests stay out of the project as much as possible…” That’s a tough nut to crack, but you already know that 😉
        Good luck!

    5. Graham Brown
      7 April, 2014 at 20:49

      Anyone who has ever used Kazantzakis airport will be familiar with the massive check in and security queues, especially when there might be several outbounds flights close together, such as on package holiday main changeover days. It makes sense to build at Kastelli, it’s not that far from the north coast and the strip east of Heraklion where many of the busiest resorts are to be found. Chania has plenty of capacity for sure but look at its location, way out west which would entail a minimum 3 hour transfer to the resorts east of Heraklion. I had heard that there were plans for a new highway to link the airport with the New National Road in or around Hersonissos which would speed up transfers

    6. 2 June, 2014 at 17:38

      Will it ever be built?

      • luc
        5 September, 2014 at 9:29

        In the current economic circumstances your guess is as good as mine. I don’t see much activity in the area, that’s for sure.

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