DFW Airport Freight Forwarder Partnership

Transcription

1 DFW Airport Freight Forwarder Partnership John Terrell, Vice President John Brookby, Assistant Vice President Commercial Development Dallas/Fort Worth International Airport August 26, 2015

2 COMMERCIAL DEVELOPMENT 2014 MASTER Discussion Topics: DFW Airport Overview Commercial Development and Land Use International Partnerships and Trade Alliances Foreign Trade Zone Cargo Development Strategy Cargo Business Sectors and Opportunities Freight Forwarder Engagement and Feedback 2

3 DFW International Airport $31.6 billion economic impact Cargo activity accounting for $16.7 billion Unifier of the region 4th busiest in operations Only airport to land 4 aircraft 61 million passengers annually Home to the worlds largest airline 7 runways

4 Major Today, Fastest corporations DFW growing has grown region mention in to in to be the be DFW one U.S. Airport of of and only home seven among to to airports more the top than in reasons in 20 the 20 they world Fortune chose with 500 direct to headquarters relocate flights their to to more headquarters than 200 destinations to the region 148 domestic and international COMMERCIAL DEVELOPMENT 2014 MASTER

5 COMMERCIAL DEVELOPMENT 2014 MASTER Each new daily international route brings in about $200 million dollars to the local economy annually.

6 COMMERCIAL DEVELOPMENT 2014 MASTER International Service DFW is recognized as the premier inland cargo hub, with international cargo service to 17 major cargo hubs around the world.

7 COMMERCIAL DEVELOPMENT 2014 MASTER DFW Land Use Plan Supports goal to be more competitive in the global travel market by developing a multifaceted center of commerce. Approximately 6,000 acres of developable land More than 5,200 gross acres of property will emerge into multiple centers of development Over 1,200 acres leased Strategic location between Dallas and Fort Worth and proximity to a network of highways provide commercial developers with numerous key advantages 7

8 COMMERCIAL DEVELOPMENT 2014 MASTER Business Model Analysis Development Districts Map Southgate Plaza Mixed-Use Founders Plaza Freeway Commercial Coppell Northwest Logistics Industrial Southwest Cargo Logistics / Industrial Redevelopment Beltline TOD Mixed-Use North Entertainment Grapevine Industrial Use Coppell East Air Cargo Passport Park West Grapevine Bear Creek Walnut Hill Industrial 8

9 DFW Land Use Plan Core Business Operations COMMERCIAL DEVELOPMENT 2014 MASTER RUNWAYS AVIATION MAINTENANCE FACILITIES 12,000 acres maintained for core business operations TAXIWAYS CARGO DEVELOPMENT AVIATION RELATED USES 9

10 COMMERCIAL DEVELOPMENT 2014 MASTER Industrial and Warehouse Developments Logistics Center I & II Fresenius DFW Trade Center 6, 7, 8, 9 Global Logistics I & II 10

11 COMMERCIAL DEVELOPMENT 2014 MASTER Freight Forwarding Facilities: Global Logistics I & II Phase One: Under construction Total 263 K sq. ft. 5% Office Phase Two Total 327 K sq. ft. 10% office 11

12 COMMERCIAL DEVELOPMENT 2014 MASTER DFW Trade Center 6, 7, 8, 9 Trade 6 500K sq. ft. 32 Clear Height 28 acre site Trade K sq. ft. 32 Clear Height 18 acre site Trade K sq. ft. 30 Clear Height 18 acre site 12

13 International Commerce Park COMMERCIAL DEVELOPMENT 2014 MASTER Developable Land Area 432 acres DFW Investment $37M Developer Improvement $300M Jobs 3,219 Salaries $131M Annual Revenue to DFW Airport

14 Commercial Development Aviall, Inc. at International Commerce Park (ICP) COMMERCIAL DEVELOPMENT 2014 MASTER Expansion Largest Grown independent Benefits business exponentially: provider of new aviation parts and related aftermarket services Wholly Increase Increasing owned its taxable subsidiary sales business from of $506 The personal Boeing million property Company in 2001 to value $3.22 between billion in $ million and $60 Relocated million Facility to ICP expansion in November from 239, square feet to 564,000 square feet, with 630, ,000 Increase square square Freeport feet foot of inventory additional corporate value space headquarters between and $225 global million distribution and $580 center million The Additional move Employees to $20.6 ICP increased doubled million payroll the from size annually 340 of its to 800, previous adding space an additional 300 jobs Between 200 and 500 hotel room nights annually 14

15 COMMERCIAL DEVELOPMENT 2014 MASTER DFW Global Business Ventures International Airport Partnerships Foreign Trade Zone Program International Trade Alliances 15

16 COMMERCIAL DEVELOPMENT 2014 MASTER International Airport Partnerships Shanghai Airport Authority (China) Oct Taoyuan International Airport (Taiwan) Dec Seoul Incheon International Airport (S. Korea) Sep Singapore Changi Airport Group (Singapore) Sep Beijing Capital International Airport (China) Sep Moroccan Airports Authority (Morocco) Oct

17 COMMERCIAL DEVELOPMENT 2014 MASTER International Trade Alliances Trade Alliance with Aeropuerto Internacional de Monterrey (OMA MTY) Agreement signed on February 27, 2014 Purpose: To increase air cargo flow between the airports, around the world OMA comprises thirteen airports, of which Monterrey is the largest Strategic location industrial heartland of Mexico Creates opportunities for increased cargo traffic between Central and South America and Asia through DFW Capitalize on synergies resulting from air and truck service between DFW and Monterrey Stimulate commercial development opportunities by identifying new developers and companies with cargo needs 17

18 COMMERCIAL DEVELOPMENT 2014 MASTER International Partnership: Foreign/Free Trade Zones Dubai Free Trade Zone, United Arab Emirates DFW Airport s website updated with information on Dubai Free Trade Zone and link to their website. Cooperative marketing programs. Farglory Free Trade Zone, Taiwan Memorandum of Understanding signed on December 5, 2011 establishing an airport alliance between DFW Airport and Taoyuan International Airport, Taiwan. Memorandum of Understanding between DFW and the Taiwan Farglory Free Trade Zone signed on May 17, Incheon International Airport, South Korea Study on Tax Benefits of Incheon Free Trade Zone completed. 18

19 U.S. Foreign Trade Zones Economic Benefits of FTZs COMMERCIAL DEVELOPMENT 2014 MASTER No duty on imports until they leave the FTZ for a domestic destination No duty on items brought into FTZ and exported, as these items never enter Customs territory Manufacturing FTZs can elect the lower of component part or finished product duty rate No state and local personal property tax on imported inventory or domestic inventory held for export Other logistical and process savings INTERNATIONAL AIR CARGO CENTRE PHASE I AND II

20 DFW Airport s Foreign Trade Zone COMMERCIAL DEVELOPMENT 2014 MASTER DFW sponsors FTZs in three ways: On-Airport Pre-designated FTZ boundaries Railhead, Fort Worth Predesignated geographical FTZ area Throughout Metro Area- Company specific locations 20

21 COMMERCIAL DEVELOPMENT 2014 MASTER DFW Airport s Foreign Trade Zone On-Airport FTZ 2,400 acres/971 hectares on-airport Pre-designated as FTZ Companies can simply activate with Customs 56 buildings, 12 million sq. ft. of warehouse space is FTZ-designated New industrial development underway FTZ acreage can easily be moved to accommodate companies

22 COMMERCIAL DEVELOPMENT 2014 MASTER DFW Airport s Foreign Trade Zone On-Airport FTZ Airbus Helicopters Alliance Operating Services CEVA International Dallas Cowboys Merchandising, Ltd. DHL Global Forwarding Ergo Distribution, Inc. Hitachi High Technologies America Menzies Aviation Mountain Plumbing Products NEC Corporation of America Network Logistics Panalpina, Inc. Valeo Compressor North America 22

23 COMMERCIAL DEVELOPMENT 2014 MASTER DFW Airport s Foreign Trade Zone Free Trade Zone Alliances Dubai Airport Freezone Authority (UAE) Mar Farglory Free Trade Zone (Taiwan) May

24 DFW Airport Cargo Facilities (Including Integrators) COMMERCIAL DEVELOPMENT 2014 MASTER 21 air cargo buildings with just under 3M SF of space 29 aircraft parking positions (6 wide body vs 23 narrow body) 13 freight forwarding buildings (on airport) with 1,236,200 SF of space The facilities were built and are managed and controlled by third parties 650,000 + Metric tons / year 24

25 COMMERCIAL DEVELOPMENT 2014 MASTER AA Cargo 25

26 Cargo Development Strategy (CDS) COMMERCIAL DEVELOPMENT 2014 MASTER Comprehensive alignment of freighter facility development that is sequenced by demand triggers, phased for just-in-time delivery and needs no empty chair for construction. Accommodate ramp positions for Fs or smaller (aligns operational excellence with carriers) Coterminous facilities proximate to logistics chain partners access routes (increases cost competitiveness) Redevelop the west-side where there is proximity to fueling infrastructure (limits cost impacts) CDS Study indicates 30-50,000 square foot of warehouse per aircraft parking position Industry proposals/discussions indicate 60-70,000 square foot of warehouse per aircraft parking position 26

27 COMMERCIAL DEVELOPMENT 2014 MASTER 27

28 COMMERCIAL DEVELOPMENT 2014 MASTER 95,910 SF 154,600 SF 132,800 SF 96,800 SF 115,600 SF 380,000 SF 340,000 SF 28

29 Commercial Development Website: Translated into 80 Languages COMMERCIAL DEVELOPMENT 2014 MASTER 29

30 COMMERCIAL DEVELOPMENT 2014 MASTER

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32 Cargo and Logistics Business Development Overview Our Vision: Establish DFW as the Cross Roads of the Americas for relevant global air cargo trade lanes Our Mission Create the hemisphere s best environment for the transport, handling and transit of air cargo Our Primary Business Goal Strengthen DFW s global competitiveness and brand in the logistics industry, by creating an Americas-best combination of operational efficiency, facilities, and customer service Key Results Conceive the Vision of what DFW can become Define and Disseminate the DFW Logistics Vision and Brand Conceive and Executive a new business model to match the vision and brand Market the DFW business model so that All Trade Lanes Lead to or through DFW Key Objectives FY15 Complete the DFW cargo strategy by end of September 2015 Identify any subsequent phases of the DFW cargo strategy (if needed) by the end of CY 2015 Complete global trade lane outreach plan for FY by the end of CY 2015 Complete global freight forwarder outreach plan for FY by the end of CY

33 Freighter Services at DFW Provide Forwarders with Lift to Nearly Every Region of the World Scheduled International Freighter Services at DFW May

34 DFW s over-arching cargo and logistics goal is to stimulate demand and supply growth simultaneously CARGO DEMAND CARGO SUPPLY Freight forwarders Customers brokers Airlines and handlers Shippers Facilities developers 3

35 New business development opportunities at DFW Freight Forwarders Customs Brokers 3PLs Commodity Types Trade Lanes Shippers Facilities Developers / Operators 35

36 Key Growth Sectors Targeted by DFW Texas Trade Growth: during each of the past two years, Texas has surpassed California as the USA s largest generator of international trade 2013: Texas generated 18.8% of U.S. global trade; California 15.3% Mexico-Origin Cargo Growth: DFW has replaced LAX as the most efficient air cargo gateway from the Central Mexico maquiladora region Cross-border, in-bond FTL and LTL trucking services 40% growth in past year Perishables & Growth at DFW: Traffic of pharmaceuticals, fish, fruit, flowers, etc. has more than doubled at DFW during the past year Development of 5,000 sq. ft. of cool chain facilities on airport by SCL Cold Chain, with plans to expand by another 13,000+ sq. ft. during 2015 AA s rapid expansion of South America-to-Asia belly cargo connectivity AA s construction of a 1,800 sq. ft. cooler; plans for another 4,000 sq. ft. 36

37 Asia Accounts for 64% of DFW s Total Trade with the World January - June 2014 DFW International Air Cargo Trade Top 10 Trading Partners in $US Billions China $9.11 South Korea $3.53 Taiwan Malaysia Japan UK Germany Singapore Thailand France $1.65 $1.25 $1.20 $1.01 $0.88 $0.80 $0.74 $0.62 China Accounts for 35% of DFW s Global Trade $0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0 Source: World City trade statistics, derived from U.S. Census Bureau data, for period noted, 37

38 Asia Accounts for More Than 75% of the Weight of DFW s Air Cargo Traded with the World 2013 DFW Air Cargo Traffic, by Weight Top Global Trade Partners Malaysia 3.8% Thailand 3.2% Others 12.2% China 36.4% Taiwan 3.9% Saudi Arabia 4.3% India 4.6% UAE 5.2% South Korea 6.8% Singapore 9.8% Japan 9.8% Note: DFW Catchment Area includes DFW, HOU, ELP, LRD, STL, MCI, BPT Source: U.S. Department of Commerce, Bureau of the Census 38

39 Re-Shoring of Manufacturing to Mexico is being Driven by Total Production Costs that are Lower Than Those in China 2013 Indexed Total Landed Cost of U.S. Imports Source: Mexico Now, December 4,

40 Approximately Half of Mexico s Maquiladoras Manufacture Products that are Typically Shipped by Air Source: Jesus Canas, author: Maquiladora Industry: Past, Present and Future 40

41 The Mexican States with the Largest Manufacturing Presence Fall Within DFW s Air Cargo Catchment Area Source: Mexico Now, September-October 2014, pg

42 The Manufacturing Sector Attracted 73.5% of all Foreign Direct Investment in Mexico During 2013 Source: Mexico Now, September-October 2014, pg

43 Automotive Sector 43

44 9 Automobile Companies Currently Manufacture Cars and/or Parts in Nearly 20 Cities in 11 Mexican States Source: Mexico Now, December 4,

45 10 Automobile Manufacturers have Announced US$9.7 Billion in New Maquila Plants Since 2012 Source: Mexico Now, December 4,

46 Case Study: Japanese Automobile Companies are Ramping up Production in Mexico Source: Mexico Now, September-October 2014, pg

47 Case Study: the Japanese Automotive Sector has Diversified Manufacturing Presence Throughout Mexico 47

48 Aerospace Sector 48

49 Mexico s Aerospace Manufacturing Output has More Than Quadrupled During the Past 10 Years Source: Mexico Now, September-October 2014, pg

50 Mexico s Aerospace Sector is Projected to Shift Toward Activities that Will Likely Generate Growth in Air Cargo Source: Mexico Now, September-October 2014, pg

51 and is Projected to Become More Globally-Diversified by the Start of the Next Decade Source: Mexico Now, September-October 2014, pg

52 Pharmaceutical/Perishables Sector 52

53 Establishing DFW as a Viable Perishables Gateway is the Key to DFW Seizing This Growth Opportunity 2013 Latin America-US Northbound Air Cargo Traffic Flows, by Commodity Type Electrical Machinery 2% Other 20% Apparel 3% Cereals 6% Fruits/ Vegetables 15% Fish 25% Flowers 29% MIA: 90.2% LAX: 4.6% JFK: 2.6% Others: 2.5% MIA: 72.7% JFK: 11.8% LAX: 5.9% Others: 9.6% Source: U.S. Department of Commerce MIA: 57.5% JFK: 17.3% LAX: 11.3% Others: 13.9% 53

54 Back Haul Belly and Freighter Capacity Can Create Growth Opportunities for DFW 2013 US-Asia and US-Latin America Air Cargo Traffic Flows in Metric Tonnes 1.66M tonnes 1.22M tonnes Result: 440K tonnes of back haul capacity in U.S.-Asia mkt.; and 280K tonnes in U.S.-Latin America mkt. Source: U.S. Department of Commerce 54

55 Value (Millions US Dollars) Perishable Air Cargo Traffic is Growing Rapidly in Mexico 2,000 1,800 1,600 1,400 1,200 1, Perishable Exports: Mexico CAGR Mexico - Asia: 11.0% Mexico South/Central Americas: 11.1% Mexico Europe: 8.1% South/ Central Americas Asia Europe Africa Source: World Trade Organization 55

56 Mexico s US$13.5B Pharmaceuticals Industry (12 th in the World) Offers Growth and Diversification Opportunities Mexico Traded US$275M in Pharmaceuticals with China during

57 Conclusion John Terrell Vice President, Commercial Development Dallas/Fort Worth International Airport August 26, 2015

58 Cargo-Freight Forwarder Initiative Mission: Increase cargo traffic and related commercial development by understanding the unique needs of the cargo community at DFW International Airport. Foster relationships through increased outreach Research industry trends and our competitive advantages Discover and present new opportunities Plan for future cargo needs Develop properties to increase efficiencies 58

59 THANK YOU