7b supp
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
Limitations of Translatable Documents
PDF files are created with text and images are placed at an exact position on a page of a fixed size.
Web pages are fluid in nature, and the exact positioning of PDF text creates presentation problems.
PDFs that are full page graphics, or scanned pages are generally unable to be made accessible, In these cases, viewing whatever plain text could be extracted is the only alternative.