Of
all the air cargo discussion
panels at all the industry
trade shows and events
in the first half of 2017,
we think this one is the
best.
Here’s
why.
The Boston Consulting
Group’s Partner
& Managing Director
Peter Ulrich adroitly
moderated “Improving
Efficiency, Speed, and
Quality at U.S. Airports”
at the recent CNS Partnership
Conference in Orlando,
Florida.
Setting the stage for
the four-member panel,
Ulrich observed that airport
operators must be more
than passive landlords,
but must proactively manage
on-airport capacity while
smoothing linkages between
on and off-airport environments.
Lifting
To Million Tons
Occasional FlyingTypers contributor
and a cargo consultant whose
clients have included Los
Angeles World Airports (LAWA),
Michael Webber observed
that LAX finished 2016 with
just under 2 million metric
tons of total cargo, just
below its historical peak
(calendar year 2000) annual
air cargo tonnage. As with
most U.S. international
gateways, LAX has enjoyed
double-digit growth in international
cargo since 2000, but has
been insufficient to cover
larger double-digit domestic
cargo losses.
LAWA recently commissioned
a study of its air cargo
capacity and plans to release
a Request for Proposals
in 2017 for new facilities
development, but must do
so in a land-constrained
environment in which any
cargo improvements will
require displacing some
existing activity, thereby
requiring a temporary “pivot
position” where tenants
waiting for new capacity
could operate. Decades of
development around one of
America’s most historic
aviation gateways have resulted
in congestion that causes
daily standstills on roadways
in surrounding neighborhoods.
Upon completion, the ongoing
Landside Access Modernization
Program (LAMP) should ease
LAX’s congestion issues,
but construction will cause
additional challenges before
improvements.
Chicago
Broader Shoulders
The
Chicago Department of Aviation’s
Chief Planning Official
Adam Rod described Chicago
O’Hare International
Airport’s (ORD) cargo
expansion previously
detailed in FlyingTypers.
He noted this expansion
was not originally part
of ORD’s most recent
Master Plan, but ORD is
one of the rare U.S. gateways
with net positive cargo
growth. Increasing congestion
and decreasing available
capacity necessitated completion
of a new cargo campus on
ORD’s northeast airfield
(the old military area) in
late 2016. The goal was
to add 50 percent more capacity
in warehouse and ramp.
Today, ORD has a total of 2
million square feet of airside
warehouse space with 40
parking positions for jumbo
freighters. For future growth,
ORD’s new cargo campus
still has enough capacity
to accommodate another phase
when demand requires. Other
new single-tenant facilities
developed for FedEx and
belly cargo carrier United
on ORD’s south airfield
complement the massive multi-tenant
cargo facility on ORD’s
northeast airfield. Several
panelists noted that airport
operators must manage brick-and-mortar
developments with a planning
horizon measured in decades,
on behalf of tenants whose
main assets are portable
and whose planning is often
measured in months. However,
the Chicago Department of
Aviation is confident that
its cargo improvements should
position ORD very well for
the future. Still,
Mr. Rod acknowledged such
ongoing operational issues
as maximizing connectivity
between the terminals
(belly) and north and south
(freighter), better ramp
control, and truck staging—a
concern when a seaport strike
in Southern California spiked
freighter traffic at ORD.
Pineda
Miami Presentation
Manager
of Aviation Trade &
Logistics for the Miami-Dade
Aviation Department (MDAD),
Emir Pineda represents Miami
International Airport (MIA),
where international cargo
accounts for roughly 87
percent of total cargo.
Contrasting with widespread
deficits among other U.S.
gateways, MIA has been relatively
prosperous with more than
20 percent growth in total
cargo since 2000. While
LAX, ORD, and JFK split
air cargo trade with Asia
and Europe into relatively
equal shares, MIA thoroughly
dominates trade with Latin
America and seeks to leverage
that role to serve as Europe
and Asia’s gateway
to Latin America as well.
MIA’s initial success
with Latin America derived
from favorable geography,
but Pineda left no doubt
that its continued dominance
owes much to sustained effort.
MDAD does “Perishable
Road-Shows in key markets
abroad for exporters who
use MIA to access the U.S.
market, as well as supports
half day seminars for Miami’s
international trade community
(including regulators) highlighting
proper clearance procedures,
security, handling, and
fumigation. Expanding beyond
its traditional cut flowers,
fruits, and vegetables among
perishables, MIA became
the first U.S. airport designated
as a Pharma Hub in IATA’s
Center of Excellence for
Independent Validators (CEIV)
program, with six local
companies initially participating.
MDAD has also worked with
regulators and local seaports
to initiate ocean-to-air
transfers with the first
transshipment from Port
Everglades trucked to MIA
and then carried to Amsterdam
by Centurion Cargo.
And
Then There Is Dallas
Vice
President of Airline Relations
and Cargo Business Development
for Dallas Fort Worth International
Airport (DFW) Milton De
La Paz represents an airport
ranked among the top ten
U.S. airports in annual
cargo tonnage, but even
higher (top five) in annual
passengers and aircraft
movements. DFW gets substantial
contributions from the belly
cargo operations of hub
carrier American Airlines,
as well as a regional hub
for UPS, but has experienced
much of its recent growth
from new and expanded service
of Asian, European, and
Middle Eastern carriers.
DFW seeks to serve as a
bridge between Asia and
Latin America.
This coming summer, DFW
will welcome a new cold
chain facility operated
by AirLogistix USA—just
in time to accommodate growth
anticipated from DFW’s
participation in IATA’s
CEIV program. American Airlines
opened an improved temperature-controlled
facility in recent years
largely targeting the same
sector for its own customers.
Ultimately, DFW intends
to establish a “Cargo
Community” (based
on the BRU Airport model)
to efficiently provide stakeholder
feedback both for ongoing
operations and future improvements.
DFW is also using a cloud-based
data tool called Air Cargo
Workbench to assist in cargo
planning and marketing.
This session was not only
good for the attendees and
also this reporter, it stands
as a template for the endless
event sessions yet to take
place during 2017.
Q&A
Short & Sweet
During
the Q&A period, the
panelists observed that
even at airports such as
theirs, cargo must contend
with competing priorities.
Elucidating for airport
directors and commissioners
that contributions from
cargo are critical to sustaining
transcontinental flight
schedule sustainability
can elevate stature. Local
events in which airport
operators have worked with
CNS and IATA, as well as
with the Airforwarders Association,
have been helpful in garnering
greater interest in cargo
from public agencies. Airport
operators welcome the participation
and cooperation of CNS in
helping to refine cargo
priorities.
Geoffrey
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