Item No. 7b supp 
Meeting Date:  May 24, 2016 
Air Cargo Briefing 
Seattle-Tacoma
International Airport

Briefing Highlights 
Air cargo economics 
New cargo services
for 2016 
Positioning Air
Cargo for Growth 

How do we enable industry to grow and create jobs? 
2

Air Cargo Economics 
Sea-Tac Air Cargo 

Regional Logistics 

Trade Dependent Jobs 
Source: Martin Associates, 2014 
Air cargo operations support middle class jobs for the region 
3

Regional Air Cargo Dynamics 
Air cargo delivers critical last
minute shipments where speed
is driving factor 
65% of Sea-Tac air cargo is
for domestic markets 
Significant portion is
express package and mail 
35% of Sea-Tac air cargo is
international 
More than half is exported 
Seattle-Tacoma International Airport is the Pacific Northwest's air cargo gateway to the world 
4

Top 5 Air Cargo Exports 
Through the Port of Seattle in Metric Tons, 2015 




5 
Source: wisertrade.org, data from U.S. Census Bureau, Foreign Trade Division.

Top 5 Air Cargo Imports 
Through the Port of Seattle in Metric Tons, 2015 




6 
Source: wisertrade.org, data from U.S. Census Bureau, Foreign Trade Division.

Longer Term Growth Trends 
Annual Air Cargo Tonnage 
340K                                                                          332,636 
327,239 
319,093 
320K
292,709 
300K             290,847 
283,291                  283,609 
279,893 
280K                      270,215 
260K
240K
220K
200K
2007      2008      2009      2010      2011      2012      2013      2014      2015
Rebounding from recession 
7

Seattle Air Cargo Trends 
International market (Export/Import) 
Has been a growth engine for cargo over last 4 years 
+7.1% growth in 2015 
Accounts for a record 35% of total air cargo 
Region is a net exporter driving employment in production
industries 
Indicator of global economic health and trade 

Trade oriented economy triggers strong performance 
8

New Cargo Carriers 
New Freighter Services 
Lufthansa Cargo / April 1 / Boeing 777F /
Frankfurt / 1 flight weekly 
ABX / May 10 / Boeing 767F / Daily domestic
flight 
DHL / May 28 / Boeing 767F & 757F / 4 flights
daily (20 flights weekly) 
New Belly Cargo Service 
Xiamen / Sept 26 / Boeing 787 / Shenzhen / 3
flights weekly 
Sea-Tac is attracting growth in trade and employment 
9

eCommerce Opportunity 
Domestic, express package, and mail market 
Showing recent surge in volume 
Mail saw +10% growth over past 10 months 
Historically saw a mode shift to trucking over last decade 
eCommerce delivery speed guarantees are bringing
volumes back to air mode 

eCommerce driving new growth in domestic and mail market 
10

Century Agenda Air Cargo Goal 
800
750K MT (~8% CAGR) 
- Accelerated Century Agenda 
700                                         - Need 750K square feet of
space 
600          Actual     Future 
500          333K MT 
(~4.4% CAGR)                            490K MT (~4% CAGR) 
400                                         - Original Century Agenda 
Metric                                                   - Need 490K square feet of space 
Tons
300
(MT,000) 
200
100
0
2011       2015       2020       2025       2030       2035
Future growth depends on sufficient airport facility space 
11

Facility Challenges 
Airfield vacancy rate is
effectively zero  
insufficient to meet demand 
Need real estate options for near
term expansion that can support
trade industry and job growth 
Terminal Expansion (future) 
Disposition of cargo buildings             Areas to Accommodate Displaced Facilities 
Cargo Area (future) 
dependent on timing of terminal           Cargo Warehouse (existing) 
expansion 
Sea-Tac air cargo facilities are constrained 
12

Space Squeeze 
Most cargo buildings may remain in current configuration
for 10+ years 
Airfield expansion options limited during that time period 
Century Agenda growth will add more than 150,000 metric
tons in 10 years 
Airfield may experience gap as demand exceeds supply, or
lack of space may stifle growth 
Finding options for growth is critical 
13

Strategy to Support Growth 
Interim plan increases
efficiency of remaining air
cargo buildings 
Leverage return of airfield cargo
buildings to Port ownership and
control as ground leases expire 
Terminal Expansion (future) 
Focus on cargo growth tenants 
Areas to Accommodate Displaced Facilities 
Utilize and invest in buildings until             Cargo Area (future) 
Cargo Warehouse (existing) 
they are disrupted 
Leverage Port real estate to support air cargo growth 
14

Real Estate Strategies for Air Cargo 
Explore development
options on Airfield-
adjacent properties 
Target development to specific
air cargo user types 
Implement flexible design to
handle displaced airfield
operations in near-term, or
secondary users such as
freight forwarders thereafter 
Airport land can support air cargo growth 
15

On the Horizon 
Market airport's cargo capabilities to increase
trade capacity and market share 
Continue work with Long-range Plan (LRP),
Sustainable Airport Master Plan (SAMP), and real
estate development teams 
Return for annual update in Spring 2017 
Integrate Air Cargo requirements into the SAMP 
16