MSP Growth Plans, Concessions

On the agenda is the $2.5 billon 2015 plan, which based on traffic projections to the year 2035 calls for a complete redevelopment of Terminal 1 and expansion of Terminal 2 to add more gates, passenger processing facilities and kerbside space.
MSP’s roadways will also be realigned and a new airport hotel added in the phased development program.
Work has actually started on the first part of the project, the addition of four gates in Terminal 2, and could be completed at the end of 2016, equipping the complex with a total of 14 airbridges.
Further gates are planned for T2 in future development phases, although MSP GM Jeff Hamiel is quick to point out that they will only be added when demand dictates that they are necessary.
“All new infrastructure is triggered by legitimate growth and demand as we are not in the build it and they will come mode at all. Once we see demonstrated long-term demand for additional facilities, we will build them,” he says.

Concessions program
MSP is well known for its successful concessions program, regularly winning ACI-NA’s award for the best concessions program in North America and bringing in revenues of around $175 million per annum.
However after 10 years of accolades the airport has decided to revamp things and earlier this year awarded new contracts for half of its concessions program and announced plans to put the remainder out to tender in 2017.
As a result of the move, in August 2015, Dufry; Hudson News; Aero Service Group, Delaware North-Angel Food-Hell’s Kitchen MSP; Midfield Concession Enterprises; SSP America; Caribou MSP Airport; Delaware North-CBR; Pacific Gateway Concessions; and MSP Innovations were between them awarded contracts to operate a total of 50 F&B, retail and news and gift outlets at MSP for the next 8 to 10 years.
The remaining two-thirds of the F&B programme will be up for grabs in two years time and when both are up and operational, Hamiel believes that MSP’s shops and F&B outlets can generate upwards of $210 million per annum in sales and nearer to $250 million towards the end of the concession.
“We are totally overhauling our concessions program because I believe that although we have been hugely successful it was based on the needs of passengers in the past and not the future,” he explains.
“What do the millennials who are just coming into the business world want from airport retail and F&B? We need to work out the formula for what they want and be prepared to provide it to them as they mature and become regular travellers.”