Second consortium withdraws from LAX APM P3

20 April 2017 - 12:00 am UTC

A second consortium has withdrawn from the Los Angeles Airport’s (LAX) Automated People Mover (APM) P3 procurement, InfraAmericas has learned.

The team comprising AECOM, Plenary Group, JLC Infrastructure and Sumitomo Corporation informed grantor Los Angeles World Airports (LAWA) of its decision to exit the deal this week, it is understood.

Two sources familiar told InfraAmericas the consortium reached the decision after failing to find replacements for construction groups Walsh Group and Granite who in January decided not to proceed with the design-build joint venture.

At this same time, another consortium led by Cintra and John Laing was placed in a limbo after Bechtel withdrew from the team, as previously reported. Cintra then began talks with the AECOM/Plenary team to potentially replace Walsh and Granite, but the parties ultimately failed to agree on terms, sources said.

Three teams now remain for the LAX APM procurement.

The withdrawal of the AECOM and Plenary consortium means that Mitsubishi will now be the sole APM vehicle provider to the Skanska, Kiewit consortium, said the first source. Prior to their withdrawal, Mitsubishi was understood to be also working on the AECOM and Plenary consortium.

The project’s final RFP is expected in June 2017. The board will select a preferred proponent in December 2017. Financial close is scheduled for March 2018. 

The complexity of the project will mean that experience working in Los Angeles is critical, the first source familiar said.

The three remaining teams for LAX APM are; 

Gateway Connectors: Kiewit, Meridiam Infrastructure Managers, Skanska 

LINXS: HOCHTIEF, Grupo ACS, Fluor Corporation, Balfour Beatty

LAX Connecting Alliance: Aberdeen Asset Management, Acciona, Axium Infrastructure, OHL Concesiones, Charles Pankow Builders, Star America Infrastructure Partners 

CONRAC procurement
LAWA is also running a near-parallel procurement for the LAX’s Consolidated Rental Car Center (CONRAC) project. Six teams returned qualifications on 27 February, as previously reported. A shortlist for that procurement is expected in late April or early May, the first source said.