1. Airport City: the transactional metropolis of the future Opening address, international seminar on the airport of the future, 30th march 2006 Pieter Tordoir University of Amsterdam Amsterdam Chamber of Commerce

2. outline Main airports and transactional cities Drivers in the global and local contexts of main airports Challenges for the Netherlands and the Randstad Elements of a new development strategy for the Schiphol region

3. Main airports and transactional cities Main airports are a core asset in the web of diverse and internationally oriented transactional activities that constitutes the core of advanced metropolitan economies. The future of main airports and the future of transactional urban networks are thus two sides of the same glass sphere… The Dubai challenge: is there a lasting business case for a main airport in the desert? Under specific conditions, maybe…. The Schiphol challenge: is there a lasting business case for a main airport in a small country? Yes, if this country developes as a large city-state…

4. Contextual drivers formation of the global city system Technical/marketinstitutionaldevelopments formation of the local metropolitan system Structure of airline industy Structure of airport industry

5. Formation of the global city system: drivers The new global economy is first of all a metropolitan economy, since: -globalisation rests on fast access; only large cities can carry the fast networks -the rise of the service economy is mainly an urban phenomenon: most advanced services are based on large local markets -Flexibilisation is mainly an urban phenomenon: large and diverse cities render market flexibilities -The knowledge and creative economy is mainly an urban phenomenon: large and diverse cities attract global talent

6. The challenge for the Dutch The over-all challenge for metropolitan regions is to combine in- and external economies of scale and scope with market competition in a range of sectors The (classic) challenge for the Dutch is twofold: -how to forge a fragemented urban structure into one metropolitan market area (Randstad/Bandstad) -How to secure international hinterland access (or catchment) for this metropolitan area, since the national home market is too small

7. The old answer of the Dutch: mainport strategy 19 th /20 th century: how to survive in or profit, as a small country, from a Europe of large and powerful nations? (or: how Schiphol became a big success) -forge a nexus of many bilateral international treaties (example: open skies with the US) -connect these treaties with your business networks (example: KLM); become a transactional hub -(re-)invest in the necessary physical facilities (example: Schiphol) -Accommodate the local spin-off: international business

8. A new strategy 21st century: how to survive in and profit from an undivided European market? (or: how the Randstad might become a success) -turn the old strategy inside-out: from local development to global networks; from a mainport strategy to a metropolitan strategy -Forge a new core-competence: a very efficient metropolitan services economy within a highly connected Eurodelta regio (the principal hinterland and OD-catchment region for Schiphol)

9. Elements of the new strategy A strategy for physical transactions - local interconnections between air-, water-, road-, rail- and internethubs - development of Schiphol area as a safe, efficient and duty-free international zone (A4 werkstad) - new networked business models for just-in-time value-added services and production - development of fast air-rail freight systems: connect with other EU-hubs - local interconnections between logistics, trade, finance & business services and creative activities

10. A strategy for (catchment of) services transactions - further development of the airportcity concept: accomodate the global project economy (flexible offices, leisure etc.) - development and marketing of the Zuidas (new CBD) and Schiphol as one compact international business zone - development of the Schiphol-Amsterdam-Almere axis as one compact urban system, with IJmeer as a new unique leisure area - development of new high-speed rail connections (south and east) within the Eurodelta

11. Strategy for tourism, culture and creativity - advocate a truly cosmopolitan hospitality: open borders to (the talent of) the world - enlarge the hot urban core from the Adam inner city to the city region/Randstad; connect culture with nature and leisure (ex. IJmeer-project) - integrate and sell full value chains: transport+accomodation+services+events

12. Some final comments To finish with the biggest challenges of all: Mastering the art of alignment of market- and public co-ordination within networked complexes Mastering the art of efficient and goal-oriented over-all governance in a highly fragmented and complex institutional environment The winner takes not all, but still much, since in- and external scale- and scope-economies remain to fuel a hub-and- spoke structuration of the urban network (and airport-) economy. Only a smart mix of market and public governance can generate these economies…