Today Schiphol Group will sign a EUR 350 million loan agreement with the European Investment Bank to finance the continued upgrading and expansion of the baggage handling system at Amsterdam Airport Schiphol, an investment programme that Schiphol started in 2004 and that is expected to be completed by 2013. The new baggage system will allow Schiphol Group to maintain and improve its hub operation. It will facilitate airlines in an optimal use of Amsterdam Airport Schiphol, especially where passenger transfer flights are concerned. The baggage system will increase baggage handling capacity and will improve processing time and quality. As a hub operation can only be developed together with airlines, the investment programme involved and involves intensive collaboration between KLM Group and various domestic and international suppliers.

Pieter Verboom, Member of the Management Board and CFO of Schiphol Group said “This finance agreement with the European Investment Bank is advantageous and important in the light of ongoing large infrastructure investment programmes at Amsterdam Airport Schiphol. We are delighted that our excellent experience and relationship with the EIB financing our fifth major runway “de Polderbaan” will now be continued with the financing of investments in our baggage systems – the 70 Million Bags programme. Since 2004, we have made significant investments in order to expand the capacity and improve the quality of our baggage systems and we will continue with this in coming years. Our achievements so far have resulted in one of the best and most innovative baggage systems in the airport sector and this has contributed enormously to strengthen our Mainport function”.

Simon Brooks, European Investment Bank Vice President, commented as follows: “The European Investment Bank recognises the value of this long-term investment to improve the efficiency of one of Europe’s leading transport hubs. The state of the art baggage system will improve passenger service, reduce environmental pollution and strengthen Schiphol’s contribution to the Dutch economy.”

The European Investment Bank is the European Union’s long-term financing institution, and provides long-term finance for capital projects promoting European economic objectives. The Bank will provide a 20-year loan at favourable conditions to facilitate the key long-term investment. The baggage project forms part of Schiphol’s “70 Million Bags” initiative and will include a modern electromechanical luggage system in existing tunnels that replaces diesel baggage vehicles and provide further environmental benefits.

The project will include expansion of three existing baggage halls D, E and South and the construction of a high-speed mechanical conveyor system that will increase transfer baggage capacity by 50% from 6,000 to 9,000 per hour. The baggage storage facility will be increased from 4,000 to 8,700 bags. Reduced delivery times between airport arrival and bag delivery will significantly improve passenger service and the project will improve peak handling capacity to cater for the predicted growth in passenger numbers.

Preparatory studies for the baggage upgrade programme were initiated in 2000, construction was started in 2004 and the work is expected to be completed by 2013. The airport will continue to be fully operational during implementation of the upgraded baggage system, with baggage flow and minimum connection times being maintained.

Since 2000 the European Investment Bank has provided EUR 8.4 billion for projects in the Netherlands. In 2009 alone the Bank lent EUR 1.8 billion for energy, transport, water, research and economic development projects with, among others, the Port of Rotterdam, Philips, Gasunie, Tennet, ING and Rabobank.

Notes for Editors
•    The European Investment Bank is the European Union’s long-term financing institution, and provides long-term finance for capital projects promoting European economic objectives.
•    Projects financed by the European Investment Bank in 2009 included EUR 300 million for the Rotterdam Port Second Maasvlakte, EUR 200 million for ASML advanced lithography and EUR 126 million for Philips research and development in Eindhoven. Global loans to support investments by small and medium-sized enterprises were provided to ING (EUR 200 million) and Rabobank (EUR 300 million)
•    Schiphol Group is a leading airport operator and owner of Amsterdam Airport Schiphol, the second largest transfer hub in Europe. In 2009, Schiphol welcomed 43.6 million passengers and handled 1.3 million tonnes of cargo.

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