Expertise to support baggage system funding decision
The European Investment Bank was assessing the financing of an upgrade and expansion of the baggage handling system at a major international airport. As part of the due diligence process for the financing the institution sought the input of a firm experienced in this field to assist in reviewing the operational integrity of the proposed upgrade, and in particular whether the associated capital expenditure costs were reasonable.
o&i consulting provided a broad range of subject matter expertise to the European Investment Bank to support the institution in a funding decision for a major European airport.
As part of a detailed review of the planned funding for this project, o&i consulting provided expert comment and high level analysis of the capital costs involved to deliver the additional capacity. This included benchmarking of comparable baggage systems at other airports comparing costs where available for the delivery of systems of similar scale and complexity, delivered in similar conditions, measured as total capital cost and cost per 1000 bags per hour.
Our team also performed an assessment of the potential to realise any ‘knock-on’ operational benefits in respect of sort capacity, transfer connections performance and productivity.
We reviewed the changes required to handling areas and ratios of make up positions built per flight handled in the peak hour, improvements to industrial productivity and opportunities to handle early bags and transfer bags at a lower cost and how these improvements will be realised at the airport.