‘Send my bags to the resort please’: Welcome to TRSDC’s new airport

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Unlike current standards, the entire operational plans for travel processes at RSI ensure top- notch customer services and create an environment that offers a seamless, unmatched and hassle-free experience.
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Updated 31 July 2022
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‘Send my bags to the resort please’: Welcome to TRSDC’s new airport

  • The first phase of this Saudi Vision 2030 project will welcome the first guests early next year

Flight testing held on July 20-21 at the Red Sea International Airport, which is under construction at The Red Sea Project, marks the beginning of a new era of tourism and travel in the Kingdom.

With over five hours’ drive from the nearest existing major international airports of Jeddah or Madinah and over two hours from the nearest regional international airports of Yanbu or AlUla, RSI airport will bring domestic and international guests to the doorstep of this new global tourism destination.

Deliberately located some 20km from the sensitive coastal lagoons and islands, home to precious mangroves and reefs, the airport is tucked away on an open plain between the coastal dunes and the mountains.

The first phase of this Saudi Vision 2030 project will welcome the first guests early next year, and the airport’s developers are determined to make the travelers’ experience unique.

TRSP in itself is a unique regenerative development with the vast majority of land and marine area remaining untouched and the carefully selected development intervention set to achieve an environmental net-positive benefit by 2040. In addition, the supporting infrastructure, such as the new airport, has been sensitively approached to stay true to the vision and values of the project's developer The Red Sea Development Co.

TRSDC Airport Project Executive Director Joseph Stratford, a civil and environmental engineer who has spent most of his career in airport infrastructure delivery in the Middle East, is spearheading the project.

He left for his homeland for five years to apply his international airport delivery experience to the expansion of the London Heathrow Airport. He has since returned to the Kingdom to lead on next-generation aviation delivery.

“Red Sea International Airport is one of the smaller airports I have led, but without doubt the most iconic, progressive and special. The architectural concept, mode of operation and guest experience are truly unique,” Stratford told Arab News in an exclusive interview.

 

Red Sea International Airport is the most iconic, progressive and special. The architectural concept, mode of operation and guest experience are truly unique.

Joseph Stratford

Unmatched operating procedures

Unlike current standards, the entire operational plans for travel processes at RSI ensure top-notch customer services and create an environment that offers a seamless, unmatched and hassle-free experience. 

For instance, the aviation team is working toward implementing a unique concept of operations for baggage handling. Passengers at RSI will not have to worry about stopping by a baggage claim area to pick up their bags.

“Instead, the passengers will be escorted to the welcome center in the arrival area. The bags will be processed in a dedicated facility through a state-of-the-art baggage handling system that can track each piece until it is delivered to the owner at their selected destination,” said Abdulaziz Al-Abdan, aviation operations director, RSI airport. 

Additionally, the airport will apply discreet and non-intrusive security arrangements and procedures, enhancing the overall customer experience without infringing any regulatory requirements governing such operations. 

Furthermore, RSI will be the first and only airport in the Middle East and North Africa that serves amphibious seaplanes and is linked to water aerodromes. 

The airport features a dedicated runway for seaplanes and small general aviation aircraft operations, allowing direct air access to the Red Sea destinations. 

“Our aviation team worked closely with the General Authority of Civil Aviation to establish the regulatory framework for water aerodromes, seaplanes and water runways,” said Al-Abdan.

The regulatory framework resulted in the introduction and enforcement of a new set of safety regulations that govern the establishment and operations of water aerodromes GACA Regulations Part 137, as well as agreeing on the certifications for Red Sea Air Services Co. to operate seaplanes and water runways.

 

 




Ammar Ghaith, associate airport infrastructure director, RSI, said the airport will be the
first and last impression of all their distinguished guests.

Magnificent by design

What makes RSI different is it is a high-end tourist destination airport and not a regular civil airport. The scope of its operations includes mobility and hospitality services that begin when guests arrive at the airport until they finally check in to their hotels.

“The airport is an extension to the exclusive resorts at the Red Sea and will be the first and last impression of all our distinguished guests,” said Ammar Ghaith, associate airport infrastructure director, RSI.

It has a unique design with efficient space planning that allows for fewer steps to complete the arrival or departure process, besides minimum human intervention and shortest processing times.

The airport has partnered with key stakeholders to facilitate its flight procedures and airspace networks.

The stakeholders include GACA, Saudi Air Navigation Services, airport aviation consultant United ATS, FlyNas, FlyAdeal, TRSDC Operations, Red Sea Air Services Co., airside contractor Nesma Almabani Joint Venture, water runway consultant Jacobs and airport operator DAA International.

Mobility like never before

Ground and sea-based local mobility to resorts will be by more-sustainable electric vehicles chosen over petrol or diesel engine vehicles.

In the case of air taxis, although initially planned to be by conventional amphibious seaplanes, the airport has a dedicated secondary runway, which will be an early adopter of hydrogen-powered seaplane variants and eVTOL and eSTOL aircraft technology.

While eVTOL is the acronym for electric vertical takeoff and landing technology, eSTOL is electric short takeoff and landing type aircraft.

This approach will enable guests and their baggage to travel quickly, quietly and sustainably to and from resorts with style and pure spectacle.

The air taxi terminal is scheduled to open next year, initially to be used for a combination of air taxi, domestic and general aviation for guest access to the first tranche of hotels. The iconic main terminal building will provide international commercial aviation capability and capacity for successive hotel delivery and operation tranches.

The flight testing initiated recently is a necessary step for all new airports where a purpose-built aircraft laden with specialist equipment maneuvers new runways to test the visual and instrument aids and systems. In addition, it enables pilots to conduct safe and efficient takeoffs and landings in diverse weather and other operating conditions.

Shoring up responsibly

“There has been a quantum leap in recent years in sensitive delivery in this region, in terms of how we approach, plan, deliver and operate facilities like these,” Stratford explained.

“This is, across the board, from the culture of caring for the workforce, environmental protection, processes, quality of product, respect of time and cost. The wider team and I are passionate about ensuring that projects like this are delivered responsibly,” he added.

Stratford earlier lived in TRSP Construction Village Housing accommodation alongside many of the 1,800 contractors’ staff for the airport. He relocated this year to the Coastal Village Residences, where the TRDSC offices, management hotels, apartments, villas and townhouses have accepted staff, suppliers and visitors in the final construction stages of TRSP ahead of the phased opening of the resorts to tourists next year.

“Striving for high standards has been key to the timeliness and quality of delivery of the airport facilities so far,” Stratford said. “Indeed, the airport project has passed nine million safe man-hours worked without a lost time injury.”

TRSDC’s approach aligns with the national and industry leadership mandate that aviation development is a critical enabler of economic growth and should focus on environmental and sustainability implications and challenges.

Stratford added: “Besides providing iconic and progressive facilities in form and function, we have considered sustainability and the environment from the outset.

“For the airfield construction, the contractors have met the highest standards and expectations that I have seen in my career — impact assessments, permitting, monitoring and reporting are taken seriously. The team’s culture, pride, passion, professionalism and care play their part.”

Construction is underway on the passenger terminal facilities, with building structural and envelope packages awarded and commenced. TRSP will be entirely off-grid, including the airport, powered by a solar farm and the world’s largest battery storage facility.

Going high on ratings

Additionally, the airport passenger terminal facilities have followed industry-leading LEED or Leadership in Energy and Environmental Design, the rating system used by the US Green Building Council to measure a building’s sustainability and resource efficiency.

“We have aimed high for a Platinum Rating,” emphasized Stratford. “The detailed design-stage preliminary rating suggests we are on track for a Gold Rating or better, to be confirmed through construction and operation.”

He added: “We have been driven toward requirements, selection of materials, methods, equipment, energy and resources reduction and reuse.”

In theory, some 15 percent of the aviation industry’s carbon challenge is associated with the ground-based airport infrastructure, and the other 85 percent is associated with jet aircraft and flight.

“We’re mindful of our part of the aviation sustainability and carbon challenge, and what we can do with practices and technology of the day, but also looking to what we can do to facilitate emergent technologies and practices,” Stratford informed.

For example, RSI is planning infrastructure for sustainable aviation fuels, ground power and preconditioned air, use of resources and energy-efficient operational practices.


Oil Updates – crude steady as investors weigh US rate fears, firmer seasonal demand

Updated 5 sec ago
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Oil Updates – crude steady as investors weigh US rate fears, firmer seasonal demand

SINGAPORE: Oil prices were stable on Friday as investors considered the latest comments from the US Federal Reserve on interest rates amid sticky inflation, while signs of firming seasonal US fuel demand lent support, according to Reuters.

Brent crude futures rose 2 cents at $81.38 a barrel at 6:15 a.m. Saudi time, while US West Texas Intermediate crude futures were down 1 cent at $76.86.

Both benchmarks settled at multi-month lows on Thursday, with Brent crude futures closing at their weakest point since January and US crude futures hitting a three-month low.

Brent futures were headed for weekly declines of more than 3 percent, while WTI futures were poised for a slide of nearly 4 percent from last week as ongoing macroeconomic constraints in the US held prices in the balance.

“The sore demand sentiment owing to the hawkish Fed outlook at rates and the backdrop of ‘possibly higher-for-longer rates’ weighed significantly on oil prices this week,” said Priyanka Sachdeva, a senior market analyst at Phillip Nova.

Minutes released on Wednesday from the Fed’s latest policy meeting showed policymakers questioning whether current interest rates are high enough to tame stubborn inflation.

Some officials said they would be willing to hike borrowing costs again if inflation surged. However, Fed Chair Jerome Powell and other policymakers have since said they feel further rate hikes are unlikely.

Higher rates could slow economic growth and crimp fuel demand.

Meanwhile, strengthening US gasoline demand was helping to stabilize prices ahead of the Memorial Day holiday weekend, which is considered the start of the US summer driving season.

Gasoline demand in the US reached its highest level since November, the Energy Information Administration said on Wednesday. That helped support the market as US drivers account for around a tenth of global oil demand, “making the upcoming driving season a pillar of the recovery in global demand growth,” ANZ analysts said in a note.

All eyes are now on the Organization of the Petroleum Exporting Countries and allies, together called OPEC+, set to meet on June 1, where they are expected to discuss whether to extend voluntary oil output cuts of 2.2 million barrels per day.

“The market is also tentative about taking an aggressive positioning ahead of next week’s OPEC meeting, where supply policy will be discussed,” ANZ analysts added. 


Oil creeps back up after three days of losses

Updated 23 May 2024
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Oil creeps back up after three days of losses

Oil prices crept up on Thursday, clawing back some of the previous three days’ losses.

The gains were made despite the US Federal Reserve entertaining a further tightening of interest rates if inflation remains sticky, a move that could hurt oil demand.
Brent crude futures were up 92 cents, or 1.1 percent, at $82.82 a barrel by 1317 GMT. US West Texas Intermediate crude futures were 97 cents, or 1.3 percent, higher at $78.54. Both benchmarks fell more than 1 percent on Wednesday for their third straight day of losses.

Saudi crude exports
Saudi Arabia’s crude exports reached 6.41 million barrels per day in March, according to an analysis from the Joint Organizations Data Initiative.
This figure increased by 96,000 bpd, or 1.52 percent, compared to the previous month, marking a nine-month high. Furthermore, the data indicated that the Kingdom’s crude production fell to 8.97 million bpd, reflecting a monthly decrease of 0.42 percent.
This can be linked to the voluntary oil production cuts adopted by members of the Organization of the Petroleum Exporting Countries and their allies, known as OPEC+. Saudi Arabia announced in March the extension of its 1 million bpd cut, initially implemented in July 2023, until the end of the second quarter of 2024.
The Ministry of Energy said that the Kingdom’s production will be approximately 9 million bpd until the end of June.
Meanwhile, refinery crude output, representing the processed volume of crude oil yielding gasoline, diesel, jet fuel, and heating oil, fell by 4 percent compared to the previous month, reaching 2.56 million bpd, according to JODI data.

 

 


IMF demands Pakistan secure parliamentary approval on reforms for loan agreement— official

Updated 23 May 2024
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IMF demands Pakistan secure parliamentary approval on reforms for loan agreement— official

  • Government will present “prior actions” needed to secure IMF loan in federal budget next month, says finance ministry official 
  • Leading economist says Pakistan left with no option but to secure IMF bailout to meet external financing needs of $80 billion 

ISLAMABAD: The International Monetary Fund (IMF) has asked Pakistan to seek parliamentary approval on major economic reforms related to the energy, power, tax sectors and on the privatization of state-owned enterprises (SOEs) before starting formal talks for another loan program, a finance ministry official said on Thursday. 

Facing low foreign exchange reserves, currency devaluation and high inflation, Pakistan last month completed a short-term $3 billion IMF program that helped stave off a sovereign default. However, the government of Prime Minister Shehbaz Sharif has stressed the need for a fresh, longer-term program with the global lender. 

An IMF mission reached Islamabad last week to negotiate with Pakistani authorities for a fresh bailout program, holding talks with officials on reforms in key economic sectors. The mission is wrapping up its visit today, Thursday, without reaching any staff-level agreement with Islamabad. 

The government would present the economic reforms demanded by IMF or “prior actions” in parliament in the Finance Bill 2024-25 likely to be presented on June 7, the finance ministry official with knowledge of the negotiations, said on condition of anonymity. 

“The IMF has suggested authorities to get parliamentary approval for the new loan program’s targets and conditions before initiation of the formal talks,” the official told Arab News. 

“In fact, these are the prior actions that Pakistan is required to take care of before reaching a staff-level agreement with the Fund for the new bailout package.”

The international lender has urged Islamabad to overhaul its SOEs and introduce tax, energy and power reforms. Pakistan has had to take painful measures in line with the IMF’s demands since 2022, which included hiking fuel and food prices. 

The finance ministry official said the government intends to introduce key reforms in the energy and power sectors in line with the IMF’s demands, besides broadening the tax base through progressive initiatives. 

“The government will take all parliamentary parties into confidence over the digitalization of the Federal Board of Revenue and the privatization of the SOEs,” he added. 

Sajid Amin, a senior economist and deputy executive director at the Sustainable Development Policy Institute (SDPI), said the government had “no option but to secure the IMF loan program.” He said the IMF’s program was critical in helping Pakistan meet its external financing needs of around $80 billion in the next three years. 

“The IMF wants political ownership of the loan program and that’s why it is pushing the government to get all the targets and conditions approved by the parliament,” Amin told Arab News.

“The biggest challenge for the government is to convince the coalition partners and opposition over its reforms agenda to secure the IMF loan,” he said. 

Amin warned the upcoming IMF program would be the “toughest” one for the government as it would not be easy for it to complete it. 
 


Goldman Sachs to establish regional headquarters in Riyadh: report

Updated 23 May 2024
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Goldman Sachs to establish regional headquarters in Riyadh: report

RIYADH: Goldman Sachs Group is set to become the first Wall Street bank to establish its regional headquarters in Saudi Arabia as it has reportedly obtained a license from the Ministry of Investment, reported Bloomberg.

As per the recently approved laws in Saudi Arabia, companies with state contracts must have a regional headquarters in the Kingdom with a minimum of 15 employees.

Arab News contacted the Investment Ministry to get a confirmation of the news but officials declined to comment.

It would be pertinent to mention here that Goldman Sachs currently has offices in Doha, Riyadh and Dubai.

Saudi Arabia has outperformed its target for attracting regional headquarters, with over 180 companies now established in the Kingdom. This number surpassed the initial goal of securing 160 HQs by the end 2023.

Saudi Arabia offers tax incentives for foreign companies that locate their regional headquarters in the Kingdom, including a 30-year exemption for corporate income tax.

The tax incentives include zero income tax for foreign entities that move their regional headquarters in the Kingdom, and these benefits can be availed from the date of the regional headquarters issuance license, according to Ministry of Investment. 


Saudi Arabia issues 54 industrial licenses in March 

Updated 23 May 2024
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Saudi Arabia issues 54 industrial licenses in March 

RIYADH: Saudi Arabia maintained the issuance of over 300 industrial licenses in the first quarter of 2024, consistent with the previous year, official data has revealed.

According to a statement released from the Kingdom’s Ministry of Industry and Mineral Resources, as many as 324 industrial permits were issued in the first three months of the year, with 54 approvals issued in March alone. 

The report further showed that the volume of investments in March amounted to SR1.047 billion ($279 million). 

This falls in line with the Saudi Arabia’s ambition to transform mining into a foundational industrial pillar of the country’s economy. 

It also aligns with the ministry’s goal to strengthen the sector as well as contribute to the ongoing developments in accordance with Vision 2030.

Moreover, the report, which was issued by the ministry’s National Industrial and Mining Information Center, disclosed that the permits in March were distributed across several sectors, including the manufacturing of non-metallic mineral and food products and formed metal goods as well as chemicals and paper and its products. 

According to the analysis, the new industrial licenses were distributed among multiple regions, including the Eastern Province, Riyadh and Makkah, as well as Qassim, Jazan, Madinah, Al-Jouf, and Al-Baha. 

The distribution of new permits shows that small enterprises comprised 77.78 percent, with medium-sized companies following at 22.22 percent. 

In terms of the type of investments, national factories accounted for the largest percentage of the total licenses, with 98.15 percent, followed by foreign establishments with 1.85 percent. 

Furthermore, the study also indicated that the number of factories existing and under construction in the Kingdom until the end of the same month reached 11,832 factories, up from 11,757 facilities in February, with an investment volume of SR1.528 trillion.

Meanwhile, 69 factories started production in March, with an investment volume of SR1.339 billion.

The ministry issues its report monthly to establish the sector’s most critical indicators in Saudi Arabia, demonstrating the extent of change and the growth of industrial investments. 

In April, the Kingdom introduced the Mining Exploration Enablement Program, inviting global firms and explorers to participate in the initiative in an attempt to further expand the sector.

According to a statement at the time, Saudi Arabia’s Ministry of Industry and Mineral Resources and the Ministry of Investment extended invitations to international companies in the sector to register for the scheme. 

The statement further added at the time that the program is expected to boost exploration activities, optimize the value extracted from the mining sector, and expand the Kingdom’s survey potential by focusing on uncharted territories.