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).
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.
NOTE TO AIRPORT OPERATORS: The Moodie Davitt Report is the industry’s most popular channel for launching commercial proposals and for publishing the results. If you wish to promote an Expression of Interest, Request for Proposals or full tender process for any sector of airport revenues, simply e-mail Martin Moodie at Martin@MoodieDavittReport.com.
We have a variety of options that will ensure you reach the widest, most high-quality concessionaire/retailer/operator base in the industry – globally and immediately.
The Moodie Davitt Report is the only international business intelligence service and industry media to cover all airport consumer services, revenue generating and otherwise. We embrace all airport non-aeronautical revenues, including property, passenger lounges, car parking, hotels, hospital and other medical facilities, the Internet, advertising and related revenue streams.
Please send relevant material, including images, to Martin Moodie at Martin@MoodieDavittReport.com for instant, quality global coverage.
All such stories are consolidated in our popular Tender News section (see home page dropdown menu) that has been running since 2003.
