 For
the air cargo industry, October was the month of the mega conference.
TIACA in Incheon
and FIATA in Istanbul clearly represent two of our most prestigious forums.
They bring together carriers, shippers, forwarders, truckers, handlers,
and government officials: they explore the nuances of shipping and security,
more efficient handling, the need for greener operations, and cutting
edge technologies to expedite goods movement and posit options for partnerships.
However, the partnership options very seldom involve the airport.
One of the things I have noted over the
past 40 years is how concerned most airports are with learning how the
industry really works at the ground level.
Airport managers want to understand what
carriers need, how forwarders and customs brokers operate, and how to
enable the elements of government involved in facilitation and interdiction
to work efficiently and effectively.
When budgets allow, airport staff attend
industry conferences to learn what they can and, in many instances, to
market their facilities. What I don’t see in the midst of the partnership
discussions and multiple conferences is an effort by the private sector
to understand the challenges facing airports.
I have heard the comparison of an airport
to a landlord who should not interfere in a leasee’s operation—and
that makes sense. However, on the flip side of that analogy is the question
of how the leasee’s planning capability is limited without knowing
the constraints of the landlord and the property, and the larger political
and economic environment.
The latest forecasts are pretty optimistic,
with volumes forecast to double in the next twenty years.
At the macro level that sounds pretty good,
but at the airport level there are challenges that need to be met.
At forecast growth levels, capacity could
become a concern for many airports.
For new facility development, the business
model is evolving.
Most carriers are no longer interested in
building and operating their own cargo facility. Instead they are turning
to private developers and handling companies to help meet the demand.
This creates a different and more nuanced
financial environment that carriers need to understand.
Additionally, as airports look to become
more creative with their land, opportunities are materializing for forwarders
and brokers, as well as trucking companies to move on airport.
In the past, this was an expensive proposition,
but a number of airports are taking a much more entrepreneurial perspective
and exploring ways to make this happen.
Airports are also faced with a planning
paradox with regard to cargo infrastructure. Airbus and Boeing Forecasts
include optimistic growth in the freighter fleet, yet the percentage of
cargo moving in freighters in most markets is declining, as carriers rely
on wide-body passenger fleets to carry increasing tonnage.
An ongoing and open dialogue will help airports
better understand where their planning efforts and investment dollars
need to go.
I have had many colleagues shift employment
from an airline to an airport. Invariably the reaction is “wow!
I didn’t really understand this side of it!”
It seems that in the various topics covered
in the many conferences, there would be some value in helping to explore
and develop that understanding.
Daniel B. Muscatello
Editor's Note: Dan is Managing Director, Cargo & Logistics, Landrum
& Brown based in Cincinnati, Ohio.
We have known Dan from his days as manager
of air cargo for the Port Authority of New York & New Jersey.
Today he has gone way beyond just New York,
in a stellar 30-year career that has included projects all over the world.
Dan has been a development strategist for
both the business and physical facility planning of air cargo complexes,
and the integration of ancillary and supporting logistics services that
make them operationally and financially feasible.
We look forward to hearing from Dan often
with special commentaries and welcome our readers comments as well.
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