King Abdulaziz International Airport
Jeddah Airports Company (JEDCO) appointed SJ to provide Project Management Consultancy services for the airport facilities development plan. SJ will oversee over 100 CAPEX projects, valued at 3 billion SAR – with emphasis on passenger experience and efficient processing for the millions of pilgrims who travel through King Abdulaziz International Airport (KAIA) each year during Hajj and Umrah. The planned infrastructure upgrades will increase the airports capacity from 29 million to 114 million passengers annually (MPA) by 2030.
Challenge
KAIA is about 25 km North of Jeddah city center and has a total land area of approximately 105 km2. Commissioned in 1981, it has since become the busiest and the fastest growing airport in the Kingdom of Saudi Arabia, providing commercial operations and acting as the gateway to the holy cities of Makkah and Madinah.
JEDCO, established as an independent entity under MATARAT in 2022, is steering the enhancement and expansion of KAIA as part of Vision 2030. In alignment with the National Aviation Strategy’s ambitious targets, JEDCO is undertaking a major development program in modernizing its facilities to keep pace with the increase of passengers targeted to reach 114 million passengers per year in 2030. Currently over 140 CAPEX projects are planned with an estimated value of over USD one billion.
Solution
SJ’s specialist Aviation team is managing various CAPEX projects in collaboration with the JEDCO Engineering team. The program of works has been developed under Vision 2030 as part of KSA’s National Aviation Strategy. The team has been appointed to augment the airport’s operational efficiency, passenger experience, safety, capacity expansion, commercial returns, and asset rehabilitation. Scope of services includes:
- Design Management
- Cost Management
- Construction Management
- Site Supervision
- Stakeholder Management
- Contract Administration
- Aviation Management
- Local Project Management Office
- Knowledge Transfer
- Engineering Document Control
SJ continues to work closely with JEDCO’s Engineering department on their journey through operational transformation. During the initiation phase of the project the team focused on the following strategic areas:
- Established Project Governance and standardised processes such as Project Management Plan, Project Master Program, HSE Plan and reporting systems
- Dynamic/Live Dashboards
- Seamless communication mechanisms and protocols
- Robust Project Controls frameworks
- Development of risk management policies and procedures
- International best practice Project Management systems and processes
- Implementation of new value management mechanisms
As a result of process optimization, the team was able to reduce requisition times, reduce variation claims and mitigate risks across the program. During the first twelve months the team achieved notable results including:
- 46 new projects successfully tendered, collectively valued at $446 million, showcasing a strong capability in acquiring and managing a substantial project portfolio.
- Increased the on-time delivery rate of projects to 96%
- Developed clear Statements of Works (SOWs) and tailored contract conditions, which contributed to a reduction in variation claims, thereby minimising project scope changes and associated costs.
- Identified and mitigated 239 major risks across the portfolio of projects, underscoring a proactive approach to risk management and ensuring project stability.
- Streamlined the documentation and communication process, resulting in 96% of documents being responded to in a timely manner, which improved communication and decision-making throughout the project lifecycle.
Onur Yamuk, Regional Director, Aviation and Aerospace (AMEP) commented, “Our PMC consists of a diverse, multidisciplinary team to deliver pragmatic real-world solutions. It’s critical to collaborate closely with our client to fully grasp their needs and priorities, and strategically develop interventions to facilitate successful delivery of each project.”
