TAIPEI. Ever Rich Duty Free has been selected as the top bidder in the dual tenders for the long-term Taoyuan International Airport Terminal 2 duty free concessions, ahead of intense international and local competition.

As reported, two businesses were on offer, North Gate D (where the incumbent is Tasa Meng Corporation) and South Gate C (Ever Rich Duty Free).

Ever Rich topped both bids. However, as a company can only operate one area, Ever Rich will negotiate terms with Taoyuan International Airport, and decide which area to take. The remaining opportunity then falls to another party, with Tasa Meng set to gain the remaining concession after finishing runner-up in both bids. Both concessions are subject to contract signing.

Tasa Meng was second bidder for area C ahead of The Shilla Duty Free of South Korea in third place.

Tasa Meng was also second bidder in area D, ahead of Nan Ren Hu Entertainment Co.

Seven bidders contested area C and nine bid on area D (six made offers for both concessions). The parties presented their claims before the selection committee yesterday (7 August).

The result is a triumph for long-established incumbent Ever Rich Duty Free.

Long-term contracts on offer

The two contracts will run for 12 years with three-year extensions subject to “outstanding” performance.

The winning bidders will pay between 16% and 22% of revenue each month depending on sales volumes (the higher 22% kicks in when a monthly threshold is exceeded). They must also take responsibility for a wide range of additional airport operations (see below) under the terms of the airport’s unique Private Public Partnership (PPP) model.

We’ll bring you more details soon.

Besides running the duty free shops, the winning bidders must take charge of running (and funding) T2’s many diverse public services (Top two pictures are Ever Rich Duty Free; the third is of Tasa Meng)

The traffic figures here are published by exclusive agreement with m1ndset’s newly launched Business 1ntelligence Service (B1S). This unique air traffic forecasting tool was developed with IATA and ARC’s ‘Direct Data Service’ (DDS) database. Click to enlarge charts.

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