PROJECTS

Regulatory Framework for Sangster Airport Privatization, Jamaica

The problem

Montego Bay’s Sangster International Airport is Jamaica’s main tourist airport, serving tourist areas of the North coast. Under public ownership, the airport was congested and provided low-quality services, deterring tourists and harming Jamaica’s tourism industry. The Government of Jamaica decided to let a concession contract for the island to bring in private capital and airport-management expertise but lacked experience in regulating privately-financed airports.

How we helped

Castalia designed the charging arrangements for the concession contract. We advised on the landing fees and passenger charges and determined how these charges could be adjusted periodically. The charges were designed to allow the private operator to earn a reasonable return on capital while promoting efficiency and preventing monopoly pricing.

Impact

Sangster International Airport was privatized in 2003, with Vancouver Airport Services Consortium taking over the airport under a 30-year concession agreement. Nearly US$200 million in private investment was mobilized in expansions and improvements. The airport’s capacity doubled to seven million passengers per year, boosting the tourism industry, and 43 new retail spaces were created.

Our team

David Ehrhardt

David Ehrhardt

Chief Executive

How can we help you?

How can we help you?

WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia

AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand

WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand

PARIS
+33 (0)1 84 60 02 00
64-66 Rue des Archives
France

BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia

Thinking for a better world.

Castalia-logo-negative-2col
PROJECTS        NEWS        BLOG        CONTACT
© Copyright 2019 Castalia. All rights reserved.  Terms | Privacy | Credits | Sitemap

WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America

SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia

AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand

WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand

PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France

BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia

Thinking for a better world.

Castalia-logo-negative-2col
PROJECTS        NEWS        BLOG        CONTACT
© Copyright 2019 Castalia. All rights reserved.
Terms | Privacy | Credits | Sitemap