Project Management Analysis of the Al Maktoum International Airport Expansion

Introduction

Project Rationale

Globalization is gaining momentum faster, making people travel from one place to another for business, leisure, and education acquisition. Dubai is one of the world’s most attractive travel destinations for tourists and investors. It is considered one of the most sophisticated and developed cities in the United Arab Emirates. Since the number of visitors in Dubai has risen exponentially, there was a need to improve the existing transport and logistic infrastructure to meet the growing need.

The Dubai government, therefore, saw the need to expand the Al Maktoum International Airport. After the project, the state-of-the-art airport will be expected to handle at least 12 million tons of cargo and 260 million passengers annually (Maktoum, 2019, p. 13). The airport is a multipurpose air travel facility in Jebel Ali, 23 miles from Dubai. The implementation of the ongoing project depicts the efficiency of contemporary complex project management.

Main Goals, Deliverables, and Expected Benefits

The Dubai government initiated the project to supplement the Dubai International Airport, which operates past its limits. Further, the increase in airport capacity would attract more investors, improving the economy and making it a business hub in the world. Diversifying the Dubai economy was another important goal that motivated the government to fund the project. The main deliverables required for the project included expansion of the cargo terminals, increasing passenger capacity in the runways, and ensuring that auxiliary services such as car parking and restaurants are offered (Kumar, 2022, p. 41). The expected benefit of the project was to position the country as one of the major travel hubs in the world.

Importance of the Project

The airport’s expansion was vital since it helped address the capacity constraints experienced in the facilities. Consequently, it showcased Dubai’s economic capacity and vision, attracting more investors worldwide (Martinsuo et al., 2019, p. 44). The provision of redundancy in the transport facility makes travel into the region seamless, making the project more viable. The project was likely to make Dubai one of the fastest-growing regions in the world in terms of economy and social stature.

P.E.S.T.E.L. Analysis

The project involved numerous environmental issues, such as affecting the local communities and other legal constraints. It is essential to analyze the environment of a project before implementing it to ensure that all hurdles are removed for success to be attained. In the political environment, there was goodwill from the government as it saw the airport as the path to economic stability (Holzmann et al., 2018, p. 64). The political support was, therefore, overwhelming. Although the airport was a great facility, it required more financial resources to be completed; it required prior planning and budget allocation to ensure efficiency (Picciotto, 2020, p. 67). The construction of the 35,000-acre facility was expected to relocate people, which was likely to affect the social fabric. The social realm was to be considered and ensure that public participation was made possible to lower the expected revolt from the locals, increasing project efficiency.

The technological environment is essential in the construction of sophisticated infrastructural projects. The project would make use of essential facilities to improve efficiency. Unlike the old days, when there was no use of technology, the project team in the Al Maktoum International Airport expansion used the most trending technologies to plan and manage it for success (Martinsuo et al., 2019, p. 32). Environmental concerns were significant because the facility’s construction involved clearing natural habitats when the world was fighting climate change and the protection of natural habitats.

For success, the project implementation team must ensure that all the required requests are made before destroying the natural environment. Reforestation and other plans to ensure that the organisms living in the cleared regions are protected and offered an alternative place(Kumar, 2022, p. 13). The legal realm involves the standards and regulations to ensure the safety of the workers and all the stakeholders. Some of the regulation standards include the construction codes, environmental protection, and the acquisition of the required permits for successful implementation (Albahbah et al., 2021, p. 160). Failure of the project management team to comply with the rules would jeopardize the efficiency of the assignment and lead to unnecessary delays.

Project Management Analysis for Al Maktoum International Airport

The success of a project depends on the techniques used in the planning and implementation phase. For any project to succeed, the government should ensure efficiency through planning, scheduling, and risk management. The contracts and cost management are essential for the successful implementation (Maktoum, 2019, p. 67). This section analyzes the critical section of project management and how the implementation of Al Maktoum International Airport was managed. Four integral parts in project management must be followed for the airport project to be successful (Maktoum, 2019, p. 55). The four stages include planning, organizing work through staffing, directing by issuing correct orders, and ensuring that the workers are controlled for success in the implementation.

Project Organization & Governance

The expansion project was meant to expand a small airport that handled domestic passenger and cargo traffic to a significant international airport dealing with numerous cargo handling capacities and ensure passengers worldwide had an excellent travel experience. The government initiated the project, and therefore, the governance committee started the implementation process after the budget was set in the 2006/2007 fiscal year and two main contractors awarded the project to implement s(Kumar, 2022, p. 14). The general expansion work was conducted under the direct supervision of the Dubai government through the Dubai Aviation Engineering Project.

The management issued the contract to two major players, who were subcontracted to other subcontractors for success and efficiency. Lane Construction Corporation is taking charge of 40% of the project, and The National Transportation Corp of Sharjah will be responsible for 60% (Martinsuo et al., 2019, p. 21). During the preliminary stages after signing the contracts, the contractors worked on temporary gates, fences, and safety utilities to ensure that the project implementation was completed without any challenges.

Project Definition, Planning, and Scheduling

The project planning included several phases which could work concurrently to improve efficiency. Although the idea to start the project began in 2004, it was funded in the preceding years after the plans were made and construction started in 2007 (Kumar, 2022, p. 54). The first phase was completed in 2010 and inaugurated to start handling cargo. In 2013, the passenger wing was ready and started operation. The project plan and schedule that was set for the project are shown in Figure 1.

Scheduling for the project
Figure 1: Scheduling for the project (El Khatib et al., 2022, p. 56).

The project was subdivided into minor sub-projects, which the Dubai Aviation Engineering Project managed, and it involved feedback and follow-up for all the work to be done. The government funded the project, so the budget was massive at 33 billion USD, broken down into various parts to make the project delivery successful (Kumar, 2022, 91). The government stopped funding it in 2009 and had to resume after the financial constraint was tackled. A simplified Gantt chart for the project’s implementation is shown in Figure 2 below. Further, figure 3 shows the network diagram of how each activity was carried out to aid in successful implementation.

Gantt chart
Figure 2: Gantt chart.
Network Diagram
Figure 3: Network Diagram.

Stakeholder & Project Communications Management

The project included many stakeholders who required an elaborate communication technique to ensure everyone got the correct information for a smooth project transition. The primary stakeholder was the Dubai Aviation Engineering Project, the link between the government and the other stakeholders (Kumar, 2022, p. 44). The project management consultants were the link between the government and the other stakeholders, ensuring that all the issues were resolved within the project scope.

Project Risk, Opportunity, and Issue Management

Risk management is an integral part of any project, and a project of the caliber of the airport requires a dedicated risk management team that ensures that all the risks are analyzed and handled in time to overcome them. The main challenges that affected the project included the financial and scheduling delays, which affected the implementation of the team (De Jong et al., 2019, p. 117). The risk management team followed an exemplary process to resolve all the challenges that affected the people. Risk avoidance, transfer, and acceptance were the elaborate methods used.

Project Handover and Close Out

The expansion has lifelong timelines but was executed in phases, which led to the closure and handover of some of the phases. For example, the first phase of the cargo section was closed and handed over in 2010, while the second phase of the passenger was handed over in 2013, and the airport started operating in international airspace (Flyvbjerg, 2021, p. 16). The steps followed in the project closure and handover included clearing all the outstanding work and accounting for the budget given handover and acceptance. The phrase was archived, and essential information was shared (Holzmann et al., 2018, p. 54). The essential lessons, such as the funding process, are evaluated and used to set new rules to ensure success in subsequent challenges.

Project’s Critical Evaluation in the Context of Contemporary Program & Project Management

The project management realm has evolved in the past decades, and some effective practices needed to be more conspicuously present in implementing the airport expansion project. The failures and successes achieved in the project could be linked to the issues in the contemporary project management realm (Ika and Munro, 2022, p. 30). Six main issues must be ensured in the project implementation to ensure it is effectively planned and executed (Flyvbjerg, 2021, p. 66). The aspect includes proper management of the stakeholders, risk management, scheduling and adequate planning, cost, supplier and contractor management, and the use of technology and innovation.

Business Case & Business Benefits Plan

Business planning is the core of the success of any project in the contemporary domain. The management-as-planning theory is a concept that emphasizes the importance of prior planning for the successful management of the project. Project managers who understand the importance of the theory put more effort into planning and ensuring that all the critical issues are addressed. Lynda Tollner, the person in charge of constructing the One World Trade Center, the tallest building in the U.S.A., stated that prior planning and constant follow-up were the key to the project’s success (Holzmann et al., 2018, p. 91). The project’s implementers were successful because they emphasized the planning stage and made it possible to thrive (Derakhshan et al., 2019, p. 43). Although there were hiccups, the firm foundation in planning made it resume even after being halted for financial reasons.

Project Organization & Governance

The relationship between the sponsors and the contractors in project management is fundamental. A good relationship between the stakeholders may ensure that the operations of a project are maintained. The success of any project requires that the stakeholders give their input for any project to be successful (Holzmann et al., 2018, p. 52).

The classical communication theory ensures that all the stakeholders in project management are ensured. The project worked in tandem with the theoretical framework, as the project managers were in constant meetings to give feedback to the government (Derakhshan et al., 2019, p. 98). The collection of feedback was critical in ensuring that it met the time and financial constraints, and even when there were financial challenges, it halted successfully and resumed after the financial issues were resolved.

Project Definition, Planning, and Scheduling

The evolution of project management underscores the use of technology in the planning and scheduling of projects. The project used the state-of-the-art technology to ensure that all the projects were intertwined (Vivek and Nanthagopan, 2020, p. 80). Project Libre is valuable software for creating schedules and ensuring they are followed up for success. Any project manager must understand and choose the theme correctly to ensure it is delivered on time and as expected (Geraldi and Söderlund, 2018, p. 67). The activity on the node is a critical framework that ensures that the smaller parts of the project are assigned to professionals for efficiency.

Stakeholder & Project Communications Management

Stakeholder analysis and communication are vital aspects that must be present for success in project management. Social exchange theory is a theoretical framework explaining that people are likely to communicate better in positive relationships. For example, when the project manager and the client share a personal relationship, they will communicate effectively and deliver better results (Flyvbjerg, 2021, p. 4).

The stakeholder theory further underscores the importance of communication between the stakeholders. It is imperative to note that when the people involved in the project communicate constantly, they are likely to point out any mistakes and correct them before they cause extra harm to the implementation schedule. Although the airport expansion project had a seamless communication strategy between the stakeholders, it needed to be better regulated, leading to scope creep in the discourse.

Project Risk, Opportunity, and Issue Management

Project creep is a situation that makes managers focus on issues that were not outlined in the project schedule. Focusing on other issues is risky and may jeopardize the project’s outcome, such as completing it after the set date or within the stated budget. In the process of managing a project, some risks may jeopardize the operation, while there are also issues that are likely to improve the efficiency of a project (Geraldi and Söderlund, 2018, p. 64). It is the role of the project management team to ensure that it analyzes all the risks and presents them before happening, and another team to address all issues and exploit opportunities in favor of the project. The project management team in the airport expansion used the risk opportunity and issue management for success.

Project Contracts & Cost Management

Costs and contracts are crucial elements for the success of a project. A project contract is a legal document that binds the client to the project management team to deliver the project’s outcome. The legally binding ensures that each party to the contrary gets a better outcome (Derakhshan et al., 2019). An effective contract must focus on the scope, quality, budget, and timelines. The parties must, therefore, ensure that they negotiate a precise, favorable contract to cover the outcomes in project management. The Al Maktoum International Airport project cost $32.6 billion and was well broken down to meet the company’s needs (De Jong et al., 2019, p. 55). The project contract issued by the government through its management body made it possible to flow smoothly.

Project Resource & Quality Management

Project resources include all the materials likely to be used for project success. The resources in the project were appropriately distributed as they varied from one project to another. A resource value theory states that allocating adequate resources can fulfill every part of the project. The airport expansion project, however, did not follow through, and it was affected by the discourse (Geraldi and Söderlund, 2018, p. 76). The management philosophy of total quality management is keen on ensuring that all the customer needs are met to improve effectiveness and ensure it is delivered on time, within budget, and fulfilling all the customer’s needs.

Project Handover & Closeout

A project is only considered complete if it undergoes project closure and handover. The phase is, therefore, critical in ending the contract obligation and handing over the project to the client. The stakeholder theory underscores the importance of submitting project outcomes according to customer preferences. The airport expansion project included an inclusive handover after completing the cargo and passenger sessions.

Observations, Lessons Learned, and Conclusions from Project and Case Studies of Similar Projects (One World Trade Center)

Upcoming managers can learn much from implementing the Al Maktoum International Airport expansion project. Several observations are connected to the concepts and philosophies of project management (De Jong et al., 2019, p. 98). The observation forms the lessons learned and incorporates the best way to address them for the project’s future. The three sections below show the observations, lessons, and overall conclusion from the implementation of the selected project.

Observations

The tender was awarded to two contractors to ensure the project was effectively executed and delivered on time. Having two contractors act as a redundancy and improve the division of labor and specialization. Essential techniques such as project libre and work breakdown structure were used to ensure all the assignments were broken down and assigned to people who understood the work (De Jong et al., 2019, p. 67).

Technology was manifested through the application to reduce errors and enhance project delivery speed. The governance structure was well-defined, and the communication strategies made the organization reach out to the relevant people for issues and escalation to ensure they were supported on time (Zasa et al., 2020, p. 44). The robust risk analysis and management team made it possible to observe all the challenges akin to the project and solve them before they caused a challenge in the project.

Although the project implementation team performed better, some areas can be improved to enhance effectiveness. The project’s suspension due to a shortage of funds showed that the client needed to prepare for the project, which would jeopardize the outcome. Further, there should have been a more effective communication management plan to deliver better results in the long run. Failure to recognize the financial risks led to untimely closure, only to be resumed later.

Lessons Learnt

The airport expansion project may be compared to constructing one World Trade Center in the USA. The construction of the tallest building in the USA and the Southern Hemisphere required successful project management strategies. There are significant lessons from the projects that contemporary project managers may apply to succeed in implementing projects.

The two projects underscored the use of sophisticated technology to plan, design, and schedule the work for successful implementation—both projects leveraged effective governance structures and communication strategies. The techniques ensured that a project was well-handled and delivered on time. Further, effective planning, scheduling, and close monitoring ensured that people succeeded when working on a project (De Jong et al., 2019, p. 52). Finally, the importance of risk management was underscored in the project since it ensured that some risks were noted on time and resolved before affecting the project.

Conclusions

The Al Maktoum International Airport expansion project was a general success, and the principles of strategic management were observed, such as appropriate governance structure, which was used to deliver better results. The use of technology marred the production process, which ensured that it was delivered on time and helped in the scheduling and controlling of the project. The project, therefore, offered valuable lessons to people working on similar projects or ones with similar complexity. When the project implementers form positive relationships and are provided with the appropriate tools, they will likely succeed in project management.

Reference List

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