Airport Revenue Growth and Onsite Development
The industries that rely on air cargo transport are generally quite dynamic and are driven by supply chains that experience rapid changes. These supply chain verticals are typically global and require attentive coordination between procurement, manufacturing and logistics management. In many cases due to a fast-pace of technological change, intense competition and ever-higher client expectations, these sectors are under constant pressure to reduce costs and increase efficiencies.
Many air cargo industries are adjusting to strong trends to become more flexible in response to client needs for short-term deliveries and customization. Changes in sourcing locations, production centers, distribution and end-markets have caused fundamental adjustments in company transport and logistics requirements. The increasing role of outsourced logistics and contract manufacturer partners in some industries further adds complexity.
These are the underlying factors that shape an airport’s cargo market and its ability to compete. In some cases, these kind of supply chain requirements are creating a need for “portcentric” facilities, facility assets that are proximate to an airport. In these situations the objectives for the shipper are increased reliability, reduction in transit times and the number of handlings and cost management. Airports that understand their underlying market and their competitive positioning are best able to make their business case.
GLDPartners’ understanding of airport planning, development and operations issues serve as a backdrop for our emphasis on cargo-driven revenue and route development. Our extensive knowledge of key global air cargo supply chains affords us the ability to match evolving market opportunity to the specific circumstances of our client’s assets.
Our market orientation allows us to help define onsite asset development opportunities and our pedigree in site planning, property and infrastructure development
Airport District Development
Airports have long-served as hubs for various sorts of business activity, but increasingly there is a recognition that a range of global trade and cargo movement activities are benefited from close proximity to an airport with strategic connections to important markets. Areas around an airport are often times underdeveloped and given changing market requirements, there is tremendous upside investment attraction and development potential.
Some airport-oriented economic activity just doesn’t need to be at the airport, but would benefit greatly by being located nearby. Quick access to a global logistics hubs reduces time delays, increases shipment reliability for some value-add manufacturing functions and some value-add warehouse/fulfillment center operations.
To date, some airport area strategies have been referred to by the label “aerotropolis”, but most of these have been heavy on planning and light on market-driven public and private investment. Many hardcore airport directors have seen these initiatives as high-level and very conceptual, with relatively little direct connection to the actual operation and development of the airport. We would agree that there are few good models, but in fact we believe that there is quite a lot of substance to the development of “airport investment districts”, where the airport is an integral hub to an air (cargo and passenger) trade district.
In the end, it’s all about the requirements of the market and the ability for a region to provide a competitive product versus its competitors. We can help determine that market competitiveness, which enhances land development and economic development, and fuels more airport business.