Air Cargo Facilities Development and Operations at John F ...
Transcript of Air Cargo Facilities Development and Operations at John F ...
Industry Briefing
Air Cargo Facilities Development and Operations at John F. Kennedy International Airport
October 15, 2020
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JFK International AirportToday’s Presenters
S u s a n Wa r n e r D o o l e y : Av i a t i o n C h i e f C o m m e r c i a l O f f i c e r
M i c h a e l B e d n a r z : M a n a g e r C a r g o D e v e l o p m e n t ( Av i a t i o n )
L a u r a G a r l a n d : J F K M a n a g e r P r o p e r t i e s & C o m m e r c i a l
D e v e l o p m e n t ( Av i a t i o n )
R a q u e l P i n t o : S t r a t e g i c P r o c u r e m e n t Ad v i s o r ( P r o c u r e m e n t )
Today’s Agenda
➢ In tegr i ty Br ie f
➢ Overv iew of John F. Kennedy Internat ional Ai rpor t
➢ JFK Ai r Cargo
➢ Framework for Future Oppor tuni t ies
➢ The Procurement Process
➢ Next Steps
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Integrity Brief
Integrity Brief
• This Industry Briefing is being conducted for the purpose of providing background information only.
• During this Industry Briefing and during the question and answer opportunities, direct your question to the Strategic Procurement Advisor presenter only.
• Please note this Industry Briefing is being recorded and will be made available to others upon request and on the Port Authority’s website for on-demand viewing.
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Overview of John F. Kennedy
International Airport
John F. Kennedy International Airport Aerial View
• Busiest airport in the NYC Metropolitan
Area
• Located on Jamaica Bay in Queens, New
York
• Comprised of 5,000 acres of land,
including 880 acres in the Central Terminal
Area
• Maintains two pairs of parallel runways
with total runway length over nine miles
• Can accommodate Aircraft Design Group
VI aircraft
John F. Kennedy
International Airport
Today
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• Six (6) operating airline terminals, with131
aircraft gates
• In 2019, JFK served over 60 million passengers
and nearly 1.4 million tons of cargo
• Supports 300,000 jobs in the region and 40,000
jobs at the airport
• Generates over $45 billion in economic activity
• add text
John F. Kennedy International Airport - The Vision
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• World-Class Facilities befitting New York State
• Accommodate long term passenger growth
• World-class customer service• Reconfigured terminals and
roadways• Revitalized, more efficient cargo
operation
JFKAir Cargo
Air Cargo has an essential contribution to ...
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1. Global Trade 2. Passenger Airlines 3. Employment
Although air cargo is only responsible for less than 1% of the transported volume,
this represents 35% of the value(Source: IATA)
Air cargo significantly contributes to profitable passenger airline services
through revenue generated via the belly hold
Air cargo accelerates economic activity. Growth of air cargo generates
additional jobs at JFK(Source: JFK Air Cargo Strategy 2017)
JFK Air Cargo Traffic Trends
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JFK Air Cargo Historical Volumes (Short Tons)
0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
1,600,000
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
International Cargo
Domestic Cargo
Top 15 cargo carriers serving JFK (2019)
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JFK is a critical link to global trade systems
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Share of total Imports and Exports by continent
45%
46%
46%
5%
3%
2%
2%
2%
1%
Imports: <1%
Imports: <1%
Imports: <1%
Exports: <1%
Total 2019 Imports: 657,862 STTotal 2019 Exports: 415,289 ST
45%
NEPA Approved for Development
Current JFKCargo Facilities …
Existing Cargo Buildings
Cargo Vision for JFK
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▪ “JFK air cargo operation is critically important to the region’s economy (…)”
▪ “Consistent with previous studies the panel recommends:
• increased access to updated, affordable, and right-sized cargo and industrial spaces at JFK
• a major consolidation of these facilities in a planned, efficient configuration far different from today’s layout
• to provide these cargo facilities in the north area of the Airport where there is convenient road access to off-airport cargo operations.
• at an appropriate location, to minimize the footprint of supporting infrastructure while maintaining a superior level of service.”
▪ “With any new cargo facilities, the Port Authority should comprehensively review on-airport cargo leasing and business practices to ensure the cargo operations continue to offer the essential global connections for the State of New York and the region“
3rd party handlers
Airlines (combination, all cargo) incl.Integrators
Air Cargo is a versatile, changing industry
✓ The traditional business models of the air cargo industry cargo are in transition
✓ The booming business of e-commerce and the increased use of 3rd party handling will result in a changing landscape of
(type of) operators and the business dynamics
✓ The cargo masterplan is adaptable to these changes
Many operators with varying operational and business models
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E-commerce entrants air cargo
Postal services
… and a shift towards a consolidated cargo handling practice
Facilities represent up to 30% of the cost structure of handling: Moving to more efficient operating model is imperative to meet air cargo industry performance targets and JFK land use efficiency
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Historical Multi-Tenant1 3rd Party Operator2
• Single Airline/User• Time of day peaks• Underutilized• Not flexible• Re-use challenges
• Multiple Airlines / Alliances• Better use of manpower and space• Flexibility increase• Re-programming possible• Accommodates Industry Consolidation
Airline Group Co-location
• Multiple Airlines / Multiple Alliances• Most efficient use of space and
manpower• Highest utilization• Flexibility increase• Re-programming possible• Good governance
3rd Party Handling
Cargo Area will be gradually redeveloped
Phasing scenarios accommodate all operations and growth
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Core Components
✓ Class A Cargo Terminals
✓ Common Use Aircraft Parking
✓ Truck Staging Areas
Free up space
Develop
Relocate operators
NCA
Conceptual evolution
Time Frame for DevelopmentsPlots and projects will be developed progressively
Identify Interested
users/tenants operators
Prequalify developers
Engage developers
Issue RFPs and LOs to prequalified
firms
Demolish and develop
buildings and infrastructure
Construct New Facilities
Operations
Development of each facility as part of a long-term development program
Development of each facility as part of
a long-term development program
2020 203X
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Migration requires care to accommodate ongoing operations, demolition, and the construction process.
Individual Sites
Framework for Future Opportunities
Developer Responsibilities
➢ Design and development
(incl. demolition, site preparation, utilities, construction fit-out, and programming /
management / operation) of the applicable facilities
➢ Financing
Secure all equity and debt financing necessary for the project
➢ Timelines: Move quickly
Readiness to complete design and construction stage once any necessary
environmental processes have been completed according to specified and agreed
timelines
➢ Leasing
Marketing and securing tenants: design concept, economics and commercial
vision to promote growth at JFK
➢ Ground lease / development arrangement
Long-term agreement with the Port Authority. The term and conditions will
depend on the magnitude of investment
Follows global industry practices for third party investment and development on airport land
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Commercial Framework
Land ownership
➢ The Port Authority maintains long term control of the land
Development opportunities
➢ Selected project developers and PANYNJ will complete long-term agreements for development and land use
Infrastructure
➢ Developers will develop required infrastructure and access to public utilities
Conditions
➢ The agreement will specify land use, building operations objectives and constraints
➢ Developers and/or operators will responsible for the maintenance of the facility, long-term fixtures, furniture, equipment
Commercialization / Leasing
➢ Developers will be responsible for the commercial letting of the real estate subject to PANYNJ consent
Consistent with overall airport-wide commercial planning
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Best Practices in Air Cargo Development• Technology and modern cargo warehouse configurations
• Environmental and security compliance with local, State and Federal regulatory
requirements
• Compliance with FAA NEPA Process
• Sustainable design (i.e. LEED silver certifiable) of facilities and associated
infrastructure
• Renewable energy/energy efficient installations
• Electric vehicle charging equipment (airside and landside)
• Performance measurement & monitoring
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Participation Goals
• Making good faith efforts to provide for meaningful participation by MBEs, WBEs, SDVOBs, and
LBEs in all purchasing and subcontracting opportunities, including purchase of equipment,
supplies and labor services
• MBE: Minority Business Enterprises
• WBE: Women Business Enterprises
• SDVOB: Service-Disabled Veteran-Owned Small Businesses
• LBE: Local Business Enterprise
• Responsible and fully committed to engaging local business enterprises during the opportunity
• Submitting a statement that the Respondent has reviewed and understands the Port Authority’s
MWBE/SDVOB policy and will in good faith seek to create opportunities and encourage LBEs
and MWBE/SDVOB participation in all aspects of the development and operations.
Lessee or Operator Responsibilities
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ProcurementProcess
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RFQ ObjectivesPhase 1 -- Qualifications
• Pre-qualify interested firms that have experience developing air cargo projects in order to expediate future RFP and/or LO processes
• Create opportunities that encourage local business enterprise, MWBE, SDVOB participation in all aspects of the development and operations of facilities
Phase 2 – Collaborative Dialogue Meetings
• Communicate to the development community foundational information regarding land and facilities at JFK that portray a range of options for cargo facility development at JFK
• Obtain private sector analysis of existing aviation sites and potential projects that could be developed
• Enable firms to evaluate capital investment opportunities at the Airport
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Request for Qualifications
A. Company Profile
B. Agreement on Terms of Discussion
C. Certification of No Investigation and Performance on Prior Contracts
D. Development and Operations of Air Cargo Facility Qualifications and Experience
E. Key Personnel
F. Financial Status
G. Bank Credit Reference
Requested Materials
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JFK Air Cargo Facilities Development
Pass/Fa i l
➢ Respons iveness to RFQ
➢ Respondent Exper ience
➢ Financ ia l Capac i t y
Request for Qualification Evaluation Criteria
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Request for Qualifications
• Five years of experience in air cargo facility development of at least two developments with a
minimum 100,000 square feet
• Qualifications and resumes for Key Personnel that will have key responsibilities with the
delivery of the air cargo facilities
• Demonstrate evidence of revenues of at least one million dollars a year for the last five fiscal or
calendar years
• Ability to comply with FAA Part 139 and all applicable environmental responsibilities
• An affirmation to create opportunities that encourage local business enterprises and MWBE and
SDVOB participation
Minimum Requirements
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JFK Air Cargo Facilities Development
Respondent’s Team Management and Organizational Structure
➢ Narrative description of Respondent’s management or governance structure including
allocation of roles and responsibilities
➢ Organizational chart that shows proposed structure
Experience and Qualifications of Respondent's Team
➢ Performance history and experience of the Respondent's Team delivering development and,
operations and maintenance of air cargo facilities at airports with similar size and functionality
to the Airport
➢Prior project details including construction value, financing framework, commercial
framework, and references
Submittal Requirements
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JFK Air Cargo Facilities Development
Key Personnel Experience and Qualifications
➢ Provide qualifications and resumes of Key Personnel, including key
leadership and management staff.
Financial
➢ Financial statements for Respondent and each member of team
demonstrating sufficient financial resources and capacity to perform future
development opportunities
➢Evidence of minimum required gross revenues
➢Bank references
Submission Requirements (cont.)
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Next Steps
JFK Air Cargo Facilities Development
Timeline
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CDMMeetings:
Q1 2021
Selection of Prequalified
Respondents: Q1 2021
SOQ Submissions
Due November 17, 2020
RFQ Questions
Due: October 30,
2020
Issue RFQ: October 15,
2020
CDM = Collaborative
Dialogue Meetings
Questions?
Submitting Questions
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• To submit a question, use the Chat function in WebEx
• Select the chat icon at the bottom of your screen:
• Open the chat and submit your question to “everyone” to send it through publicly or select “Raquel Pinto (Host)” to submit your question privately
• All questions will be read aloud and answered by the Port Authority team
Thank You!