Identifier
Created
Classification
Origin
09BASRAH16
2009-04-03 13:09:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
REO Basrah
Cable title:  

BASRAH AIRPORT AIMS TO BECOME TRANSPORT, COMMERCIAL HUB

Tags:  ECON EINV EAIR ICAO ETRD IZ IR SA SY JO TU AE 
pdf how-to read a cable
VZCZCXRO8874
RR RUEHDA RUEHDE RUEHIHL RUEHKUK
DE RUEHBC #0016/01 0931309
ZNR UUUUU ZZH
R 031309Z APR 09
FM REO BASRAH
TO RUEHC/SECSTATE WASHDC 0844
INFO RUCPDOC/USDOC WASHDC 0003
RUCNRAQ/IRAQ COLLECTIVE
RUEHMT/AMCONSUL MONTREAL 0001
RHEHAAA/NSC WASHINGTON DC
RHMCSUU/FAA NATIONAL HQ WASHINGTON DC
RUEHBC/REO BASRAH 0881
UNCLAS SECTION 01 OF 03 BASRAH 000016 

SENSITIVE
SIPDIS

STATE FOR EEB/TRA
STATE PASS US DEPARTMENT OF TRANSPORTATION
AMCONSULATE MONTREAL PASS US MISSION TO ICAO

E.O. 12958: N/A
TAGS: ECON EINV EAIR ICAO ETRD IZ IR SA SY JO TU AE
KU
SUBJECT: BASRAH AIRPORT AIMS TO BECOME TRANSPORT, COMMERCIAL HUB

REF: A. Basrah 14

B. Baghdad 502

C. 08 Basrah 91

BASRAH 00000016 001.2 OF 003


Summary and Introduction
------------------------
UNCLAS SECTION 01 OF 03 BASRAH 000016

SENSITIVE
SIPDIS

STATE FOR EEB/TRA
STATE PASS US DEPARTMENT OF TRANSPORTATION
AMCONSULATE MONTREAL PASS US MISSION TO ICAO

E.O. 12958: N/A
TAGS: ECON EINV EAIR ICAO ETRD IZ IR SA SY JO TU AE
KU
SUBJECT: BASRAH AIRPORT AIMS TO BECOME TRANSPORT, COMMERCIAL HUB

REF: A. Basrah 14

B. Baghdad 502

C. 08 Basrah 91

BASRAH 00000016 001.2 OF 003


Summary and Introduction
--------------

1. (SBU) Basrah International Airport (BIA) aims to play a
future role in facilitating economic growth in southern Iraq,
and become what Coalition and Basrah leaders hope will be a
force-multiplier for hydrocarbon, services, ports, and other
commercial activity. Historically under-utilized and relatively
new, the airport also connects to decent rail, port and road
connections. Since 2005, BIA has seen increased domestic,
international, charter and cargo flights. A recent Federal
Aviation Administration (FAA) inspection of the airport found it
to be in generally good shape, but needing certain areas of
improvement. On 1 January 2009, BIA was fully transferred to
Iraqi civilian control, marking a major milestone since the 2003
start of Coalition control of the province, and the UK Royal Air
Force's training and mentoring of Iraqi airport civilian staff.
The airport's surrounding area could also have potential as a
springboard for local development and link to other industries,
and foreign investors have already submitted proposals to manage
the airport as a commercial and cargo hub, construct a major
hotel, and renovate a nearby administration building into a
business center. While the now-US-led Provincial Reconstruction
Team (PRT) and US Army will carry on the leadership and
mentoring role played by the UK at BIA, ultimately it will be up
to the Government of Iraq (GOI) and the Ministry of
Transportation (MOT) to overcome bureaucracy and habitual
misgivings about private investment, and to realize any real
development. With so much investor interest in Basrah, and
security the best it has been in five years, the time is ripe
for action now. End summary and Introduction.


Under-utilized airport, decent transport links
-------------- --

2. (SBU) Around 5 miles NW of Basrah city and 30 miles from the
Persian Gulf, Basrah International Airport (BIA) is relatively
new, having been built in 1987 by a German firm to a British
design. Until 2003, the airport was largely under-utilized,
used sparingly for domestic travel and for the occasional Iraqi
VIP stopover. Its single runway is 4,200 meters long and 23
meters wide, sufficient to handle modern commercial air carriers
including long-haul aircraft. Iraqi BIA managers proudly note
its runway is 400 feet longer than Heathrow Airport, and
regularly receives UK-leased Antonov cargo planes. The arrival
gates and waiting areas are modern and clean. Many first-time
visitors often express surprise upon arrival, unprepared for the
airport's general orderliness, and gleaming, if sometimes
sparsely populated, lobby. The terminal and cargo apron have
parking stands for up to 12 aircraft directly in front of the
terminal building, and a seldom-used cargo hangar.


3. (U) BIA also has good connecting multi-modal transport
potential, linked by rail (albeit in need of upgrading) to
Baghdad (270 miles),Iran (18 miles) and Kuwait (32 miles).
Basra is connected to Iraq's only deep-water port of Umm Qasr,
about 30 miles south, via a decent highway.

Increased commercial, religious charter flights
-------------- --

4. (SBU) BIA currently supports about 40 weekly civilian flights
(40 arrivals, 40 departures),carrying over 3,000 passengers,
and about 100 weekly military flights. BIA officials indicate
that they have plans to achieve International Civil Aviation
Organization (ICAO)-recognized Category II status (although
there are no plans for this anytime soon). Management would
like to attract carriers that would eventually extend routes
throughout the Middle East, Europe and beyond. Increased
charter flights occur during the Shi'a religious pilgrimage
season, mostly to nearby Najaf and Karbala, and around 5,000
passengers used the airport during the 2008 Hajj pilgrimage,
mainly from Iran, Jordan and Kuwait. In addition to domestic
flights, BIA also supports scheduled international flights to
Jordan, Syria, Lebanon, Dubai, and Oman. While traffic is still
light, the number of flights has increased and, as long as the
security situation remains stable, is expected to grow.
Currently, flag carrier Iraqi Airways (to Beirut, Damascus,
Dubai, Erbil, and Oman) is the dominant airline, along with
Royal Jordanian, and UK-based Skylink Arabia. In addition,
several charter, leasing and cargo companies, based mainly in
the United Arab Emirates, use the airport.


BASRAH 00000016 002.2 OF 003


FAA airport inspection: generally in good shape
-------------- --

5. (SBU) On 3 March, FAA, at the request of the Embassy's Office
of the Transportation Attache (OTA) conducted an airport
certification inspection of BIA. GOI aviation officials in
Basrah had expressed interest in an objective look at progress
made since the previous FAA inspection in 2005. FAA focused on
civil and military airport operations that have an impact on
civil operations, such as airport lighting and markings; fire
fighting; airport certification program; flight safety
management system; and wildlife management program. FAA
officials also visited the air traffic control (ATC) tower to
speak with Royal Air Force officials managing the facility. HMG
will turn ATC functions over to the US Army's 164th Combat
Aviation Group on 1 May. (Note: Most UK personnel are expected
to depart Basrah by 31 May, with the final withdrawal by 31
July. End note.) Coalition military operates the ATC from
1900-0700 hours, while Iraqi civilian controllers operate the
tower from 0700-1900 hours. OTA officials urged the GOI control
tower manager to increase Iraqi-led hours from 0700-2300 hours.
Overall, the FAA found BIA to be in good shape; however, certain
areas require action and improvements, such as the airfield
ground lighting, air-field beacons, signage/markings, and
fueling operations. FAA inspectors noted that the same areas
identified as needing improvement were also identified in their
2005 inspection. (Comment: This may reflect the lack of
sufficient management skill at the airport as well as a habitual
tendency to defer maintenance on infrastructure nationwide. End
comment.) FAA's assessment results will later be captured in a
final report.

Transfer from UK to Iraqi control now complete
-------------- -

6. (SBU) From 2003 until January 1, 2009, BIA was operated by UK
military personnel in support of Coalition forces, using it as a
hub for air operations and as a theater entry/exit point. The
Royal Air Force's 903 Expeditionary Air Wing has also trained
and mentored Iraqi civilian staff and managers. In June 2005,
while still under UK control, Iraqi civilian flights began to
operate again, with Iraqi Airlines marking the first flight.
Since then, military and civilian aircraft have operated
side-by-side.


7. (SBU) A major milestone in the completion of the UK's Iraq
mission occurred on 1 January 2009, when BIA was fully
transferred to Iraqi civilian control; it is now run by the
Iraqi Civil Aviation Authority (ICAA),under the Ministry of
Transportation (MOT). The transfer marked the completion of one
of the UK forces' last key tasks in Southern Iraq, and coincided
with the GOI regaining sovereignty of its airspace. Coalition
military personnel continue to provide some air traffic control
services in a partnership that allows side-by-side military and
civilian operations - the same arrangement since 2005, except
under GOI control.

Business plans for area surrounding airport
--------------

8. (SBU) UK and US officials, Basrah business leaders, and most,
but not all, GOI officials see an important role for the
airport's surrounding area, including the substantial amount of
land and infrastructure available, as a potential site for
development, leasing, and warehousing -- as well as a source for
GOI tax revenue. These officials and business leaders see this
area as a springboard for local development, which could
accommodate what they hope will be a vital link to hydrocarbon,
ports, and other services and industries. As the security
situation continues to improve, more multinational investors are
visiting Iraq's second city, via its airport, to investigate and
negotiate projects. Recent visits include Shell, DHL, Maersk
Oil, British Petroleum, Chevron, Piers Drysdale TRC,
Schlumberger, Baker Hughes, Deutsche Land, and John Moore &
Associates (ref A). The entire airport and outside perimeter,
which encompasses the adjacent Coalition military base - where
both the PRT and Regional Embassy Office (REO) are located -- is
under MOT control. (By contrast, Najaf airport is a provincial
asset - see ref B.) Special economic zones have been proposed
for this area, but none yet have come to fruition. The MOT has
been very slow in analyzing proposals, and as of now, none have
been approved.


9. (SBU) Foreign investor development projects have included a
UK-based John Moore & Associates plan to construct and manage a
100-bed hotel on a site next to the airport, and a U.K.-based

BASRAH 00000016 003.2 OF 003


Deutsche Land multi-year proposal to privately manage BIA, and
to turn it into an important commercial, cargo and passenger
hub. HMG and GOI officials have identified the former BIA
administrative building located next to the airport as a future
"Basrah business center." ICAA Director General Captain Sabeeh
Al Shebany has directed that it become a "technologically
advanced modern business center and investment front window for
potential investors to enhance Basrah's ability to attract and
develop private sector investment, aide the creation of
employment and stimulate economic development in a resurgent
Baswari economy." Damaged during the war in 2003, HMG has
funded a $3 million initial refurbishment of the building, but
its officials caution that future success requires aggressive
MOT action, in order to turn the facility over to a private
sector management company. U.S. oil services company Baker
Hughes has expressed interest in acquiring a lease on the
business center to house its own operations and for sub-lease to
other companies seeking to establish in Iraq.

Comment
--------------

10. (SBU) The role that BIA and its surrounding land could play
as a force multiplier in any southern Iraq economic resurgence
is clear. With the noticeable reappearance of investor interest
in Basrah, and the security situation the best it has been in
years, the time is ripe to ensure that BIA becomes the regional
hub it is destined to be. While the US-led PRT and US Army's
164th Combat Aviation Group will continue the mentoring role
previously provided by UK officials, in the end it is the GOI
and MOT that must overcome their slow bureaucracy and habitual
misgivings about private investment.
NEGRON