99 Our Performance S0 S1 S2 S3 S4 S5 ANNUAL REPORT 2021 MANAGEMENT DISCUSSION AND ANALYSIS underscore our capabilities in airport synergistic development strategies and our commitment to formulate and execute a comprehensive masterplan at both KUL and SZB. The development of integrated industrial precincts by Malaysia Airports have the potential to become engines of growth beyond the airport boundaries which attract substantial foreign and domestic direct investments in the e-commerce logistics and maintenance, repair and overhaul (MRO) sectors. For 2021, with accelerating the unlocking of the potential of the landside real estate as an overarching priority, three major themes dominated as discussed below. Enhancing Aeropolis development around KUL and SZB In 2021, an overarching priority was for us to unlock the potential of the landside and capture off-terminal development opportunities. Several major initiatives were announced in this respect. The Aeropolis development plan facilitates future-ready physical and digital infrastructure at both airside and landside zones, customises real estate solutions to meet the requirements of operators and develops commercial spaces to cater to the needs of the workforce and local community. At maturity, the development plan is expected unlock additional Gross Floor Area of over 8 million square feet (sq ft) of prime real estate and achieve the government’s vision in creating high technology-driven IR4.0 industries and generating high skilled capabilities within Malaysia. Dassault Aviation announced that it was setting up its Asia Centre of Excellence for MRO at SZB. As the first in the country, this integrated one-stop maintenance facility will elevate Malaysia’s position as the preferred regional business aviation hub. Dassault has over 2,000 business aircraft under its maintenance globally, and the strategic collaboration will see Dassault Aviation investing up to RM100 million for the facility. Collins Aerospace expanded the footprint of its MRO operations inMalaysia by relocating to a new 160,000 sq ft facility at Subang Aerotech Park. This is a key addition to the list of global single source providers for aircraft components and subassemblies operating out of SZB today. The RM16 million facility will serve as one of its regional hubs for aircraft component maintenance. At KUL, the Cainiao Aeropolis eWTP Hub is a joint venture between Malaysia Airports and e-commerce titan, Alibaba and forms part of Alibaba’s global network of distribution centres. Covering over 100,000 sqm at the KLIA Aeropolis and enjoying the distinction as Alibaba’s first hub outside of China, the hub is operated by Alibaba’s logistics unit, Cainiao Smart Logistics Network. The facility houses a cargo terminal, fulfilment centre, warehouse and sorting centre for e-commerce and has an 80% occupancy rate as at end-2021. Its integrated operations has increased the efficiency of the logistics chain, for example improving the time for customs clearance to just 90 minutes from 24-48 hours previously. This catalytic development is set to elevate KUL’s air cargo status as one of the leading distribution gateways within the ASEAN region which targets a 72-hour delivery in the global e-commerce marketplace. In 2021 also, DHL Express commenced development of its first fully auto-sort air cargo gateway in Malaysia located at KLIA Air Cargo Terminal 1. The RM200.0 million facility is DHL’s largest investment in Malaysia to date and the 13,422 sqm gateway will triple the size of DHL Express’ current facility and increase its shipment processing capacity by more than 400%. The facility will have the enhanced capability to handle 10,000 packages per hour, 24 hours a day, compared to the current 2,400 packages per hour. In 2021, an overarching priority was for us to unlock the potential of the landside and capture off-terminal development opportunities
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