ITEM NO: __7b Supp___
DATE OF
MEETING: February 22, 2011
Strategic Opportunities for
International Trade Logistics at
Seattle-Tacoma International Airport 
Air Cargo Briefing

Air Freight is Big Business
Over $1 trillion is spent annually
on domestic US transportation and
logistics services
Air freight accounts for 24 % of the
total US merchandise trade value
$85 billion air freight & express
market
$35 billion US domestic market
Freight traffic growing about 6%
per year worldwide
Market size doubles every ten
years

2

Cargo Industry Players
Supply-Distribution Chain
End
Supplier      Manufacturer   Distributor     Retailer
Consumer
Reverse Logistics
Air Transportation/Logistics
Shippers                      Motor carriers
3PLs/4PLs                    Air carriers
Customs brokers                Airports
Consolidators                   Cargo/Ground handlers
Indirect carriers                    Federal Inspection Agencies
General Sales Agents              Consignees
Gov postal authorities
3

A Changed Role for Cargo Airports
As the economy recovers, airports with substantial cargo
movement should recognize the multimodal nature of cargo
and increased role of third party logistics services, and
consider an expanded role
Airports should think of themselves not only as airfields, but
as logistics centers that extend beyond the airport fence and
embrace regional partnership opportunities
Airports are becoming network hubs for consolidation and
distribution of not just air, but also truck and rail freight

4

Air Cargo is Vital to Pacific Northwest
Major economic benefits accrue from an efficient transportation logistics
industry, boosting trade and increasing regional economic strength.
More than 160,000 jobs in
Washington state are related to
air cargo at Sea-Tac.
Trade-Dependent
Industries         Those jobs earned $8 billion in
wages and salaries and
Regional           contributed $737 million in
Logistics             state and local taxes.
Sea-Tac
Air                         Total annual value of air freight
Cargo                    exported from Sea-Tac is
estimated at more than
$15 billion.
Source: Martin Associates, 2009

5

Air Cargo at Sea-Tac
3rd Largest International Gateway
on the West Coast                   Origin and Destination
Metric Tons                                                              Market Share
1,500,000
Europe          Alaska
13.9%           5.7%
1,000,000

500,000
Asia
0                                               21.9%
LAX   OAK   SFO   ONT   SEA   YVR   PDX
Rank    5    12   15   18   20   25   27                                       Contiguous
U.S.
Hawaii                         56.6%
*based on 2009 tonnage                                     1.9%


6

International Air Cargo Service
February 2011


Amsterdam
London
Luxembourg
Seoul                                      Heathrow
Seattle                       Frankfurt
Paris
Beijing      Tokyo
2010 Europe
Osaka
Taipei   2010 Asia                          Imports +17%
Imports +25%              Exports  -6%
Exports +27%

7

Air Cargo Market Share
Fedex (FX)                                                                         130,325
Alaska Airlines (AS)                  25,354
Delta Air Lines (DL)               20,729
China Airlines (CI)          12,682                                            International
30%
United Airlines (UA)         12,220
Korean Air (KE)         11,185
EVA Air (BR)        9,957
Cargolux (CV)       8,796
Domestic
Lufthansa Airlines (DHL)      6,281                     70%
British Airways (BA)      5,949
Southwest Airlines (WN)     5,403
Passenger
Continental Airlines (CO)     4,959                                                              "Belly"
36%
Martinair (MP)     4,957
Air France (AF)     3,824
Hawaiian Airlines (HA)     3,703                                Freighter
64%
Hainan Airlines (HU)    3,510
US Airways (US)    3,050
Asiana Airlines (OZ)    2,471
0       20,000     40,000     60,000     80,000     100,000     120,000     140,000

Volume in Metric Tons
8

Air Cargo Facilities at Sea-Tac

North Cargo Area
South Cargo Area


9

Top PNW Air Export Commodities
Electric Machinery, TV & Sound Equipment
Aircraft & Spacecraft Parts
Optic, Photo & Medical Instruments
Machinery & Parts
Fish & Shellfish
Fruits & Vegetables
Footwear
Plastics
Plants, Bulbs & Cut Flowers


10

Positive Attributes: Location & Connectivity
YVR
Seattle
BOI
PDX
JFK
ORD
SFO         DEN

LAX






11

International Gateway Hubs



12

Strategic Roadmap for Sea-Tac
Envision and market Sea-Tac as an International Air Cargo
Logistics Gateway

Goal: Enhance the
Objective:       Strategy: market
air cargo volumes
Strengthen the       Sea-Tac as a
Vision: logistics as       by attracting
linkage between     single logistics
a core component       global
on-airport cargo      platform to the
of the Seattle      logistics/manufact
activity and off-      various links up
economy      uring companies
airport 3PL/4PL      and down the
to Sea-Tac airport
activities          supply chain
logistics park


13

Air Cargo Logistics Study Findings
Air cargo service is a core component of the Sea-Tac business
model
Port should strengthen physical and institutional linkages
between on-airport cargo operations and off-airport facilities
and services provided by private sector 3rd-party companies
Advance strategy by creating "Sea-Tac International Gateway
Logistics Center" that would enhance airport cargo operations
Port-owned properties north of airfield are uniquely situated
to accommodate physical movement of cargo to and from
airport cargo area
Properties south of airfield are ideal for attracting 3rd-party
value-added logistics services
14

North Airport Properties
North end graphic



15

South Airport Properties
South end graphic



16

Airport Based Logistics Center
Linkage to the Airport
Efficient roadway linkage
to Airport and industry
clusters                       NERA 3
L-Shape
Technology linkage                        Property      Freight consolidation

Connectivity with               NERA 1 (Lora
Value-added logistics
Lake)
CPB/TSA/AMS
Foreign Trade Zone
Universal branding                       Sea-Tac          designation
"Sea-Tac Gateway                  Airport
Logistics Center"                                       International gateway
logistics
Common standards
design & development                            Des Moines
Creek
property management
Business Park
performance & security


17

Existing 2009 Freight and Goods Transportation System
Freight Mobility
BINMIC

Port of Seattle                              All air cargo moves by truck
Duwamish MIC                        at some point in the journey
Boeing Field
North Tukwila MIC
Airport access from point of
origin is key
Sea-Tac Airport
Kent MIC
Keep freight mobility
efficient and cost-effective
Support statewide system
Port of Tacoma                               investment to serve cargo


Fredrickson MIC
18

On-Airport Facilities Investment
Customs and Border Protection
(CBP) cargo inspection facilities
- $1.3 million
Off-gate hardstand fueling
and power improvements,
and expansion
Cargo 6 ramp - $6 million
Cargo 2 ramp - $13 million
Fuel hydrant system
completion  est. $25 million

19

Future Outlook for Sea-Tac
Air Cargo currently in a growth mode
Strong and growing international and express sectors
With overall aircraft operations down at Sea-Tac,
airport has capacity to grow cargo
Focus on International Air Cargo Logistics Gateway
Hub strategy as a jobs creator and export promoter
Maintain and improve on-airport facilities
Promote efficient and cost-effective regional freight
mobility

20