TY - JOUR

T1 - The effects of COVID-19 pandemic on the performance of airport renovation projects: the case of Pulkovo Airport

AU - Lodiagin, Boris A.

AU - Ринкон Эрнандес, Карлос Хоакин

PY - 2023/12/28

Y1 - 2023/12/28

N2 - This paper explores the effects of the COVID-19 pandemic on the performance of airport renovation projects. The research examines the case of the renovation project of the Saint Petersburg's Pulkovo Airport in Russia, which started in 2010 within the concession agreement of the Northern Capital Gateway and the Government of Saint Petersburg until 2040, and raises the question of how this pandemic influenced the performance of Pulkovo airport renovation project. A Cost-benefit analysis and its sensitivity analysis were used to determine how restrictive measures against the spread of COVID-19 affected the profitability and social indicators generated by Pulkovo Airport. The social effect of infrastructure renewal was determined in accordance with the Efficient Time Allocation and Generalized Cost of Travel theories. The study reveals a decrease in the Net Present Value (NPV) of the renovation project due to changes in the trends of passenger traffic and the number of takeoff and landing operations, a decrease in the growth rate of airport revenue and a partial reduction in operating costs. The expected Social NPV of the project decreased by 94.32 percent, and the benefit-cost ratio drastically reduced to 1.33, from a 4.06, had the pandemic not developed. The sensitivity analysis suggests a shift in the key variables that affect the performance of the analysed infrastructure project.

AB - This paper explores the effects of the COVID-19 pandemic on the performance of airport renovation projects. The research examines the case of the renovation project of the Saint Petersburg's Pulkovo Airport in Russia, which started in 2010 within the concession agreement of the Northern Capital Gateway and the Government of Saint Petersburg until 2040, and raises the question of how this pandemic influenced the performance of Pulkovo airport renovation project. A Cost-benefit analysis and its sensitivity analysis were used to determine how restrictive measures against the spread of COVID-19 affected the profitability and social indicators generated by Pulkovo Airport. The social effect of infrastructure renewal was determined in accordance with the Efficient Time Allocation and Generalized Cost of Travel theories. The study reveals a decrease in the Net Present Value (NPV) of the renovation project due to changes in the trends of passenger traffic and the number of takeoff and landing operations, a decrease in the growth rate of airport revenue and a partial reduction in operating costs. The expected Social NPV of the project decreased by 94.32 percent, and the benefit-cost ratio drastically reduced to 1.33, from a 4.06, had the pandemic not developed. The sensitivity analysis suggests a shift in the key variables that affect the performance of the analysed infrastructure project.

U2 - 10.1016/j.trpro.2023.12.014

DO - 10.1016/j.trpro.2023.12.014

M3 - Article

VL - 75

SP - 115

EP - 125

JO - Transportation Research Procedia

JF - Transportation Research Procedia

SN - 2352-1457

ER -