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 
------------------------ 
¶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