MegaProject 1278: US$4.9 billion Automated People Mover P3 at LA Airport achieves financial close
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Members of the LAX Integrated Express Solutions (LINXS) joint venture team have announced that the Automated People Mover (APM) project at Los Angeles International Airport (LAX) has reached financial close.
The project is valued at approximately US$4.9 billion by Los Angeles World Airports (LAWA), which includes all design, construction, commissioning, operations and maintenance costs over the 30-year concession period.
The LINXS team is comprised of Balfour Beatty, Fluor, ACS Infrastructure Development, Hochtief PPP Solutions and Bombardier Transportation. The team was awarded the contract for the project in February.
The APM will consist of a 3.6km, above-ground airport transport system connecting LAX passengers with the airline terminals, a new centralized rental car facility, new pick-up and drop-off locations with parking facilities, and Los Angeles' Metro regional transit system. It will be designed and built by a joint venture of Balfour Beatty, Fluor, Dragados USA and Flatiron.
The financing structure includes approximately US$1.3 billion in private activity bonds, US$269 million in bank debt and US$103 million private partner equity. The contract contains milestone payments from LAWA for design and construction progress, which will amount to US$1 billion, and availability payments for both operations and maintenance and debt service.
The APM will have six stations and up to nine driverless trains operating simultaneously, arriving to transport passengers every two minutes during peak periods. The system will offer ridership capacity of up to 10,000 passengers per hour. LAWA anticipates that it will carry 85 million passengers per year.
LINXS will also deliver various parking garages, an on-site APM maintenance facility and moving walkways to the terminals and parking garages to enhance pedestrian access. The design will reduce vehicle congestion and emissions in the terminal loop.
Construction is scheduled to start in summer of 2018 with an expected completion date in 2023. It will employ 750 personnel at its peak. Following completion, a joint venture comprising Fluor, ACS Infrastructure Development, Bombardier and Hochtief will provide approximately 25 years of operations and maintenance services.
The project is a key component of LAWA’s multi-billion dollar Landside Access Modernization Program (LAMP), which aims to relieve congestion for people traveling to and from the airport and provide time-certain access to terminals. LAWA is currently tendering another project within the program - the Consolidated Rent-A-Car facility (CONRAC). Final bids are expected to be submitted by the four shortlisted teams this summer.