7a supp

ITEM NO: __7a Supp___ 
DATE OF 
MEETING: September 12, 2011 

Airport Cargo Logistics
Development Strategy 
Commission Briefing

Previous Air Cargo 
Commission Briefing 
February 22, 2011 
Overview of air cargo business, operations, and
facilities at Seattle-Tacoma International Airport 
Regional economic benefit of air cargo 
Changing role of airports for cargo 
Air Cargo Logistics Study findings 
Strategic development of airport-based
Gateway Logistics Center 
2

Preliminary Century Agenda Goals:
Moving Cargo 
Position the Puget Sound region as a premier
international logistics hub. 
Triple air cargo volume to 750 thousand metric
tons. 
Grow seaport annual container volume in a
sustainable manner to more than 3.5 million
TEUs. 
Triple the value of the Port's export cargo to over
$50 billion. 
3

Three Legs of Air Cargo Development 
Air Service marketing and business
development 
On-Airport capital facilities renovation and
development 
Off-Airport logistics support facilities
development 

4

Marketing and Business Development 
Market and develop new air cargo service 
International routes 
Focus on Asia, Europe and Middle East 
Freighter main-deck service 
Facilitate development of belly-cargo service 
Market and develop growth of existing service 
New destinations 
Increase frequencies 
5

Air Cargo Facilities at Sea-Tac 

North Cargo Area 
South Cargo Area 


6

North Cargo Area Map 



7

On-Airport Facilities 
Implement hardstand expansion and
modernization projects for freighter parking 
Focus on Cargo II and Cargo VI ramps 
Increase hardstand size, and install fuel hydrant and
ground power 
Plan for growth in airside cargo transfer buildings 
Ramp expansion impacts some existing buildings 
New buildings will be needed to handle cargo volume
growth 
8

Off-Airport Logistics Development 
Industry-specific air cargo supportive
development 
Sea-Tac Gateway Logistics Center concept 
Focus on properties north of the airfield in
Burien and SeaTac 
Focus of remainder of briefing 

9

Sea-Tac Gateway Logistics Center 
Linkage to the Airport 
Efficient roadway linkage to Airport and
industry clusters 
Technology linkage 
Connectivity with CPB/TSA/AMS 
Universal branding 
"Sea-Tac Gateway Logistics Center" 
Common standards 
Design & development 
Property management 
Performance & security 




10

Why is a Logistics Center important? 
Ties together airport's available separated properties
in lieu of a larger contiguous development area 
Creates a bigger package for marketing future
development than individual building opportunities 
Integrated logistics services become part of Sea-Tac
air cargo brand, in addition to airfield and regional
components, to market region's air cargo service 
Businesses like to co-locate with similar activities  
creates a "logistics zone" that adds efficiencies for
users 
11

Development Creates a Virtuous Cycle 
Off-airport
Cargo
logistics
tonnage
development 
growth 

New                    Proximity-related cost
airline                                   savings & revenue
services                                     growth 


Region more
New or relocated
attractive for
businesses 
logistics 
Jobs created 
12

Specific Industries Employment Growth 



13

Distribution of Economic Benefits 
United                             United
States                                    States 
Washington                           Washington
State                                       State 
King                                King
County                               County 

Local                                    Local
Community                           Community 

Cargo Logistics                    Alternate Commercial Use
Development                     Development 
14

North Airport Properties 
North end graphic 



15

L-Shaped Property 
Closest to airfield cargo
area 
Ready to develop now 
Parcel size: 26.1 acres 
Developable square feet:
200,000  300,000 
Type of use: Freight
forwarder, consolidator,
cargo screening center 
16

Northeast Redevelopment Area
(NERA) 3 
Largest developable
area 
Ready to develop now 
Parcel size: 23.4 acres 
Developable square
feet: 400,000 
Type of use: Freight
forwarder, distribution
center, 3rd-party
logistics 
17

Lora Lake/NERA 1 
Excellent highway and
airport access 
Development could not
happen until after
environmental cleanup  
2014 or 2015 
IRS limitation on use of
tax-exempt bond funds 
Parcel size: 13.3 acres 
Developable square feet:
230,000 
Type of use: Freight
forwarder, consolidator,
cargo screening facility 
18

Work Plans 
Define Port's role in development 
Active role as developer/owner, or 
Facilitative role as "orchestrator" of development 
Choose Development Strategy 
Concept Development: Gateway Logistics Center 
Parcel Specific Developer: Can still be Gateway Center 
Seize opportunities as they arise 
Define Development Marketing Plan 
Develop Sea-Tac Air Cargo brand 
19

Work Plans 
Define linkage of development to airport cargo
operations 
End-user market research 
Jurisdictional development agreements 
Study Green Gateway Initiative sustainable
development options 
Infrastructure and development needs 
Development timeline and phasing 
Developer selection 
Market airport as total logistics platform 
20

Environmental Review and Master
Planning 
L-Shape: 
Covered by Comprehensive Development Plan
(CDP) and project level environmental review 
NERA: 
City of Burien and Port partnered to create
Redevelopment Plan and Implementation Strategy 
Environmental Impact Statement completed 
Also covered by CDP at programmatic level 
21

Next Steps 
Ambitious development schedule proposed: 
2011-2012 
Articulate Port's development role and formulate overall
development strategy 
Develop branding and conduct market research 
Begin conversation on jurisdictional development
agreements 
2012-2013 
Complete any needed planning or environmental review 
Sign development agreements with local cities 
Issue RFP for developer(s) 
Developer selection 
22

Next Steps 
Other initiative work continues: 
2011 
Airline notice of airfield capital projects 
Project planning for related capital projects 
Cargo airline marketing with focus on China 
2012 & 2013 
Seek Commission authorization for cargo-related
capital projects 
Airfield cargo facilities planning 
Continue airline marketing and business development 
23

Logistics Development Strategy
Supports Regional Goals 
Creates well-paying local industrial jobs 
Enhances local tax base 
Supports regional manufacturers and
exporters 
Growing air cargo tonnage facilitates growth
of international passenger service 
Supports logistics industry including airlines 
24

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