Checklist for a successful takeoff…..

 Revenue Potential
 Air Cargo is a $45-$75 billion annual business
 Represents only 20% of total distribution logistics sector
 Growth Potential
 Over the last decade has grown by 6.1% annually
 Market size doubles every ten years
 It is expected to grow between 4-6% over the next decade
 Capacity Relief Potential
 Many major airports in US and European Air Systems are expected to reach capacity within few years

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 Freight Demand Segmentation
 Shipment Size
 Conveyable: Sort-able Packages
 Unitized Small Packages
 Heavy/Outsize Pieces
 Door-to-Door Velocity
 Fastest (time critical)
 Slowest (rate sensitive)
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 Geographic Concentration
 97 percent of world air freight tonnage moved to, moved from and moved within Asia, Europe and
North America
 56 percent of world air freight tonnage moved to, from and within North
America alone
8,534 (8,234)
9,273 (8,394) 8,497 (8,222)
MergeGlobal Inc .
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World’s Leading Cargo Airports
2
3
4
1
Rank Airport
Memphis
Honk Kong
Anchorage
Los Angeles
Rank Airport
11 New York
12 Chicago
13 London
14 Amsterdam
7
8
5
6
Tokyo NRT
Miami
Frankfurt/Main
Paris
15
16
17
18
Incheon
Taipei
Indianapolis
Osaka
9 Singapore 19 Bangkok 29
10 Louisville 20 Newark
Source: Airports Council International Data 2001, Anchorage incl. transit freight
30
25
26
27
28
Rank
21
22
23
24
Airport
Dallas/Ft Worth
Atlanta
Tokyo HND
San Francisco
Dubai
Seoul
Oakland
Beijing
Brussels
Philadelphia
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 Freight Forwarders’
Concentration
 More than 5000 Freight
Forwarders worldwide account for more than 80 percent of international air freight tonnage
 Top 15 Freight Forwarders account for 61% of total international market
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 Belly-Cargo Concentration
 Up until recently, more than 60% of international air freight was carried by passenger/combi aircraft
 Average Freight Load
Factor lies within 40-60% range
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 Long Runway
 Spacious Ramps and
Aircraft Parking
 Landing Aids
 Freight Storage and
Movement Facilities
 Transportation
Infrastructure
 Support Infrastructure
 Labor
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 Global TransParks/ Cargo Hubs
 North Carolina Global TransPark/ Kinston Airport
 Industrial Airports
 Alliance Airport, Fort Worth
 Regional Air Cargo Centers
 Memphis, Louisville, Wilmington (US)
 East Midlands (UK)
 Niche Market Airports
 Manston (UK)
 Leige (Belgium)
 Capacity Reliever Airports
 March Airport, Los Angeles
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 Central Rural Location
 100 miles east of Paris, in Champagne region
 Single 3,850 m runway
 5000 acre area
 4,200 sq.m. cargo terminal
 100,000 sq.m. warehouse space
 300,000 sq.m. warehouse capacity under construction
 Highway Link
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 No high speed rail link
 SNCF has planned a Vatry rail terminal on Paris-
Strasbourg line in 2006
 Market domination by Freight Forwarders
 FF based in major cities centers
 Geographic Concentration of Cargo
 FF collect freight from major city centers/ industrial hubs
 Domination of non-express cargo market by passenger/combi aircraft
 Belly-cargo is carried from/to major passenger hubs
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 Long Runway
 Spacious Ramps and Aircraft Parking
 Landing Aids
 Freight Storage and Movement Facilities
 Transportation Infrastructure
 Support Infrastructure
 Labor
 Strategic Geographical Location (preferably close to major cities)
 Secure Ramp Space/ Warehousing Facilities
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 Stringent Noise
Restrictions at Major
Airport/ Night Curfews
 Major airports obtaining ownership stakes in cargo airports
 Move toward application of integrated business model to heavy cargo
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“ A truly freighter-friendly airport offers around-theclock operation, spacious ramps and aircraft parking, effortless transfer between the aircraft parking lot and warehouse, easy access to customers’ logistics centers and a strategic and geographical location easily accessible to its prime market”
- S.J. Yang, Vice President, Korean Air
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