Great Falls Regional

Transportation Task #7:

Air Cargo

May 17, 2011

Prepared by:

Prepared for:

Cascade County Commission

Methodology

Air Cargo Study

Analysis

Recommendations

Presentation Outline

Methodology

Air Cargo Study

Analysis

Recommendations

Presentation Outline

Time Sensitive

Light Weight

High Value

Air Cargo Commodities

Interviews: airport officials, on-airportbusinesses, businesses in the community,logistics providers, state officials

Data Collection

Airport and cargo carrier data

Online research: FAA data, BTS data

Methodology

Competing airports

Analysis

Market area

Air cargo development potential

Methodology

Strength, Weakness, Opportunities, Threats

Recommendations

Competing Airports

Competing Airports Facilities

Calgary (YYC) = 12,675’

Runways Analysis

Spokane (GEG) = 11,002’

Billings (BIL) = 10,518’

Great Falls (GTF) = 10,502’

Casper (CPR) = 10,165

Boise (BOI) = 10,000’

Competing Airports Facilities

Ambient temperature

Runways Performance

Aircraft weight

Payload weight

Fuel on board

Runway conditions (wet/dry, wind, slope)

Runway elevation

Competing Airports Facilities

Navigational Aids Analysis

GEG = Category IIIc

GTF = Category IIIc

Competing Airports Facilities

Navigational Aids Analysis

GEG = Category IIIc

GTF = Category IIIc

Competing Airports Facilities

YYC = FedEx, UPS, CargoLux, largepassenger aircraft

Air Cargo Activity

GEG = FedEx, UPS Second-Day air hub

BIL = FedEx, UPS state hub

GTF = UPS, FedEx state hub

Competing Airports Facilities

Air Cargo Traffic

Source: US DOT T-100 Domestic Cargo Data, YYC data is based on Airports Council International

To

ns

Air Cargo Carriers

Integrated Express – FedEx Express, UPS, DHL

Passenger Airlines – American, Delta, United,

Lufthansa

All Cargo Carriers (Freighters) – CargoLux, Atlas

Freight Forwarders – Forward Air Inc, Kuehn &

Nagle, DHL Global Forwarding

Competing Airports Facilities

FedEx Express Routes

Competing Airports Facilities

UPS Routes

Competing Airports Facilities

CargoLux Routes

Competing Airports Facilities

Aerospace - Equipment & Parts

Automotive - Equipment & Parts

Agricultural – Equipment

Pharmaceuticals

Computers & Computer Components

Diagnostic Equipment

Medical Devices and Equipment

Energy Development

Textiles - Garments

Consumer Electronics

Perishables - Flowers, Fruit, Meat & Seafood

Economically Perishable Materials - Printed Material

Telecommunications Equipment - Cell Phones, etc.

Documents

Air Cargo Commodities

Market Analysis

Bold Italic = inbound, Bold = Inbound and outbound

Market Analysis

Potential commodities for air cargo

development

Meat products

Cherries

Livestock/Cattle

Market Analysis

Meat Products

Placed Based Ag Products

Premium Montana Beef Products Online

La Cense Beef, Montana Kobe Beef, Big SkyBeef and Montana Grass Fed Beef

GTF distribution center

Market Analysis

Cherries

Flathead Lake Cherries

NW Cherries commonly transported by air

One FLV orchard is selling in England,Belgium, Spain, Italy, France and Taiwan

Local processing capacity issue

Market Analysis

Livestock shipments

Recent air shipment of 900 MT head toRussia, out of Chicago

GTF Airport facilities capable in past

Some investment required

Air Cargo SWOT

Runway sufficient for domestic and international cargo operations

Superb navigational aids

FedEx Express statewide hub on airport

Location – great circle routes, time zone advantage

Unique assets – pasture land, corral on-airport

Foreign Trade Zone

Local market relies on air cargo

Workforce familiar with supply chain management - DOD

GTF Strengths

Air Cargo SWOT

Limited Carrier Selection – FedEx Express, UPS

Location – lacks large manufacturing sector

Livestock facilities require development

Circuitous USPS mail routings

GTF Weaknesses

Air Cargo SWOT

Declining US Dollar increases exporting activity

Global market for beef and other protein products

Expanding global air cargo market

Opportunities

Air Cargo SWOT

Declining US domestic air cargo market

Cost of fuel

Threats

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

Ave

rage

Price

pe

r G

allo

n

Recomendations

Retain

Attract

Foster air cargo ventures

Air Cargo Development

Att

ract

Development

Recommendations

Accentuate airport’s role in economic development

Support air cargo carriers

Continuous marketing – Tout FedEx operation and facilities at GTF

Target industry clusters which utilize air cargo/express shipping

Aerospace/Aviation

Perishables

Energy

Healthcare/Medical

Thank You

FedEx SmartPost Hub Network