Changi's low-cost terminal tenders attract few bids

Dermot Davitt

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King Power and Focus Network Agencies fight for confectionery contract but other key concessions attract no bidders

Retail tenders for Singapore Changi's new low-cost terminal have attracted few bidders for some of the key concessions.

The terminal's general merchandise concession attracted no bidders. Neither did the multi-brand sports concession. Times Newslink was the only bidder for a books, magazines and stationery concession in the low-cost terminal, while Mini Toons was the only bidder for the terminal's gifts concession.

But there was competition for the chocolate, candy and delicatessen contract, with Focus Network Agencies and King Power going head-to-head. Focus offered additional rental of 5% of total monthly gross sales for sales of S$45,000 ($26,470) per month and below; 8% of total monthly gross sales for sales above S$45,000 ($26,470) up to $65,000 ($38,235); 3% of total monthly gross sales plus a fixed minimum monthly guarantee (MMG) of S$7,000 ($4,117) for sales above S$65,000 ($38,235) up to S$75,000 ($44,1170); 8% of total monthly gross sales plus a fixed MMG of S$7,000 ($4,117) for sales above S$75,000 ($44,1170) up to S$110,000 ($64,705); 12% of total monthly gross sales plus a fixed MMG of S$7,000 ($4,117) for sales above S$110,000 ($64,705). King Power offered additional rental of 10% of total monthly gross sales or a fixed MMG of S$4,500pm ($2,647)for Year 1; S$5,000 ($2,941) per month for Year 2; S$6,000 ($3,529) per month for Year 3, whichever is higher.

Hang Ten and Jetbest Enterprise were the two bidders for two possible mid-priced fashion concessions in departures. For concession A, covering 105sqm (1,130sq ft), Hang Ten offered 18% of total monthly gross sales for sales below S$60,000 ($35,294) or a minimum monthly guarantee (MMG) of S$5,000 ($2,941) per month, whichever is higher; 17% of total monthly gross sales for sales from S$60,000 ($35,294) to below S$75,000 ($44,117) or a MMG of S$11,000 ($6,470) per month, whichever is higher; 16% of total monthly gross sales for sales from $75,000 ($44,117) to below S$100,000 ($58,823) or a MMG of S$13,000 ($7,647) per month, whichever is higher; 15% of total monthly gross sales for sales from S$100,000 ($58,823) and above or a MMG of S$16,000 ($9,411) per month, whichever is higher.

Jetbest, which has the licence for the brand name Carlo Rino, offered 25% of total monthly gross sales or a MMG of S$3,450 per month, whichever is higher. For concession B, in a slightly larger area, Hang Ten offered the same terms as for concession A. Jetbest offered 25% of total monthly gross sales or a MMG of S$5,500 ($3,235) per month, whichever is higher.

The concessions begin when the new low-cost terminal opens early in 2006 and they last for three years from that date.

Civil Aviation Authority of Singapore preferred not to comment on the tenders when contacted by RavenFox.com.