Air Cargo Facility Planning and Development—Final Report (2015)

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Page 1-1 CHAPTER 1: INTRODUCTION—AIR CARGO FACILITIES PLANNING AND DEVELOPMENT As stated in the original Airport Cooperative Research Program (ACRP) project statement, “The research plan objective of ACRP Project 03-24 is to develop guidelines for air cargo facility planning and development at airports, including collection of necessary data in support of this effort. These guidelines should assist airport operators in crafting effective business policies and development decisions that meet the industry’s current and future technological, operational, and security challenges in a cost-effective, efficient, and environmentally compatible manner. They should also include updated metrics to help guide the overall air cargo development planning process. The potential beneficiaries of these guidelines would include airport owners and operators, airlines, integrated cargo carriers, developers, financial institutions, and others linked to the airport community.” There have been many studies over the years, at the academic level and professional aviation organizational level, and on-going TRB/ACRP initiatives, to provide planning and design guidance on selected airport issues for airport planning but few solely focused on air cargo facilities. Many studies relate to airport development provide insight into cargo facility development as it applies to the airport planning topic under consideration, such as cargo facilities related to aircraft apron or passenger terminal ramp operations. In fact, while the passenger transport industry has been extensively studied, there is a relative dearth of research specifically on the on-airport air cargo facilities as it relates to airport planning and development. For example, a source outside the U.S. is the International Airport Transport Industry’s (IATA) publication, Airport Development Reference Manual, 10th Edition, (effective December 2014). This document dedicates 38 of 700 pages to air cargo facilities planning. In order to improve the efficiency and financial viability of this industry, further research should focus on a more systematic way for airports to collect and utilize air cargo data. This process could, therefore, lead to more accurate forecasts and ultimately, a more targeted air cargo facility planning process. The cargo industry has changed significantly over the past 25 years. As the world economy has become more global, markets and manufacturing has developed, shifted and in many instances relocated to markets with low labor rates. New logistics and supply chain concepts developed based on low fuel costs and labor costs along with trends in just-in-time production and final manufacturing assembly at destination. Short shelf life of new products increased during this time period and as the value of goods shipped has increased resulting in increases in the demand for expeditious transport and control as well as transparency. Domestic air cargo in the U.S. also experienced shifts particularly as fuel costs increased within the past five years and integrated express carriers developed deferred delivery business models reducing the demand for overnight delivery by aircraft and relying increasingly on truck networks. The air cargo terminal is a critical part in the air cargo supply chain. These air cargo installations on airports function as a platform which allow for the interface between land and air modes with the goal of providing the expeditious processing of cargo. This platform has a role to play in ensuring that cargo products arrive at their destination on time and intact, that customers have easy access to the cargo facilities for collection and delivery, and that the truck access is relatively uncongested and does not interfere with passenger related traffic. This Final Report describes the study’s progress through on-site collection and evaluation of data and the initial structuring of the content of the Guidebook itself. This includes the team’s research, review, and assessment of a variety of previously prepared academic journal articles, and “white papers” that had been funded by the private industry, aviation trade organizations and the Federal Aviation

Page 1-2 Administration (FAA) over the years. This Report serves as a summary of the results of ACRP 03-24 research project. This report also provides a glimpse industry trends in terms of its current issues related to air cargo facilities communicated to the research team by industry stakeholders and case study airports who participated in the research project survey and interview efforts. It is important to note that the research efforts led to the development of Spreadsheet Models for Air Cargo Facility Planning and Design. The following chapters provide, in some detail, the information compiled during Tasks 1 through 10 of the Amplified Work Plan which is included in the appendix of this report. The major components are: The following chapters provide, in some detail, the information compiled throughout the report. The major components are: CHAPTER 2: TASK 2—LITERATURE REVIEW: AIRPORT AIR CARGO FACILITY PLANNING AND DEVELOPMENT This chapter focused on two levels of analysis. First, the macro level of airport planning is explored and pertinent literature discussing alternative approaches to airport planning is reviewed. The literature review included over 40 papers, books, articles, and identified current trends and state-of-the-art research in airport strategic planning and airport master planning with a focus on air cargo facility planning and development. The information gathered from the review will be utilized to develop guidelines for air cargo facility planning and development at airports, and for airport operators in making effective business policies and development decisions that meet the industry’s challenges. Second, the micro level of airport air cargo facility planning is discussed and the trends which have emerged regarding the process of air cargo facility planning, design, and development; air cargo security, environmental and regulatory issues, and operational and financial considerations are highlighted. CHAPTER 3: SUBTASK 2.2—LITERATURE REVIEW: REVIEW AND ANALYSIS OF AIR CARGO FACILITY-RELATED AIRPORT MASTER PLANS Chapter 3 represents a literature review of 12 recent airport master plans published between 2005 and 2011. Focusing on each plan’s air cargo elements, the literature review centers on the four components of the air cargo master planning process: air cargo volume forecasts, air cargo aircraft operations forecasts, facility requirements, and recommendations. Further discussion of air cargo volume forecast details the traditional methodologies that involve statistical models and consideration of factors such as the airport’s historic air cargo volumes and various trends and forecasts. With an emphasis on innovation, this review highlights the four master plans that used market share approaches or probabilistic forecasting, and a minimal number of airport master plans that used unique approaches to forecasting air cargo aircraft operations. CHAPTER 4: TASK 1—OVERVIEW OF AIR CARGO INDUSTRY AND TRENDS Chapter 4 represents an overview of the air cargo industry. It primarily focuses on air cargo activities at airports, facility planning, facility finance and funding, air cargo trends in the U.S., and the culture and staff found within the air cargo industry. Through the collection and detailed analysis of the necessary data, an overview of the state of the air cargo industry was developed to classify its components and identify trends seen in recent years. The overview focused on three components: air cargo carrier activity at airports, air cargo facility development and funding at airports, and air cargo industry trends. Several characteristics and features are outlined for each component. For air cargo carrier activity, the different types of cargo airlines, aircraft, airports, facilities, and buildings found throughout the air cargo industry were identified to provide insight into the functionality of the industry’s components. The air

Page 1-3 cargo facility development and funding overview demonstrates the means by which air facilities are established on airports and the handling systems that operate within them. Lastly, air cargo industry trends at the major air cargo airports were organized in order to explore the relationships that provide the basis for later analyses. CHAPTER 5: TASK 3—DATA COLLECTION PLAN, FIELDWORK AND INVENTORY PROCESSES Chapter 5 explains the study data collection plan and implementation. The research team used a two-prong approach in the data collection task. First, the team used a case study approach focusing on select airports representing a range of airport types. Second, a system-wide data collection effort was conducted via an airport management survey. Each effort included collecting samples from a wide variety of airports in the U.S. Surveys were designed and tested with airport participation and air cargo business input. Interviews were held at all case study airports with airport planners and properties managers. This chapter provides details on the data collection plan, fieldwork, and inventory processes. CHAPTER 6: TASK4—DATA COLLECTION GAP ANALYSIS Chapter 6 identifies data gaps commonly found in the airport master planning process. It also describes the data gaps the project team experienced during the data collection phase of the project. The team details how data gaps related to specific surveys for this study were remedied through analysis tools provided by Google Earth Pro and other public documentation. In 2012, the research team conducted an intensive survey of air cargo facilities at U.S. airports. The collected data will be used to craft guidelines for air cargo facility planning and development at airports. The primary objective is to assist airport operators in utilizing effective planning practices and in making development decisions that meet the industry’s current and future challenges. This chapter concludes with a discussion of efficient techniques to collect data on air cargo activity on airports. CHAPTER 7: TASK 5—AIR CARGO FORECAST TECHNIQUES The air cargo industry is faced with some of the most challenging forecast challenges of any industry. Generally, cargo forecasts are undertaken as part of an airports’ master planning activity to accommodate facility improvements or in response to unforeseen demand or expectations of the local business community. They are then utilized to assist planners in the identification of appropriate areas for future cargo facility and ramp improvements. Forecasts based on historic trend analysis are increasingly less reliable as future trends cannot be solely based on activities and practices that have evolved into combined modes of both air and truck transport. Over the last two decades, the magnitude and complexity of air cargo forecasting has grown enormously and airport planners are faced with the daunting task of accurately forecasting air cargo tonnage and operations for extensive periods of time. Chapter 7 covers the different approaches and methodologies for forecasting air cargo tonnage and operations. It concludes with a discussion of forecasts utilized in recent air cargo elements of master plans. CHAPTER 8: TASK 6—AIR CARGO FACILITY REQUIREMENTS The focus of Chapter 8 is to develop planning metrics and functional relationships that enable a translation from forecasted demand to specific air cargo facility requirements, including elements in response to environmental, sustainability, and security concerns. The analysis describes the rationale behind the facility planning metrics. The scope of work for this chapter sought to link industry trends with their effect on air cargo facilities planning metrics, and to provide an overview of the air cargo industry and recent trends.

Page 1-4 CHAPTER 9: TASK 7—PLANNING AND DEVELOPMENT FRAMEWORK The goal of Chapter 9 is to prepare a planning and development framework that is the basis for forming guidelines used by airport decision makers in planning and developing air cargo facilities. The framework will build on the airport master planning process with a focus specifically on the air cargo facilities and terminal areas. The framework is applicable to a range of airports and facility types based on the existing conditions analysis, environmental concerns, and industry trends. The chapter covers cargo facility layout strategies, a review of forecast techniques, cargo apron strategies, cargo building strategies and facility ratios. The framework is also the basis for the development of an Air Cargo Facilities Planning Model, presented in Chapter 12, which applies cargo facility requirement ratios identified in this chapter. CHAPTER 10: STRATEGIC DEVELOPMENT PLAN IMPLEMENTATION Airport planners continually face the challenge of designating land for air cargo facilities, planning for air cargo facilities at their airports, and whether to construct or renovate air cargo facilities when needed. The intent of Chapter 10 is to provide airport planners with the fundamentals of cargo facilities development strategies. These strategies are intended to be applicable to a range of airports and facility types based on current conditions at airports, forecasted change, metrics set forth in the report, and to provide a guideline for development and implementation of a strategic development plan for airports to accommodate air cargo volumes in the future. CHAPTER 11: TASK 9—VALIDATION PROCESS FOR AIR CARGO FACILITIES PLANNING MODEL AND INSTRUCTIONS The research team developed an Air Cargo Facilities Planning Model to guide airport planners in the process of determining current and future cargo facility requirements. During the development of the model it was tested by professional airport planners at select U.S. Airports. Airport planners at case study airports were given the opportunity to review the facility planning model and model instructions while a similar opportunity was given to planners at airports unfamiliar with the study and subject matter. Participants were asked to complete a survey to provide inputs on instruction clarity as well as ease of use of the model and its usefulness. Overall respondents are very complementary of the model and two respondents put it to use on existing cargo projects. Relevant comments related to the model and instructions were incorporated into the final draft of the model. CHAPTER 12: AIR CARGO FACILITIES PLANNING MODEL INSTRUCTIONS This chapter provides a practical learning tool for airport planners to understand air cargo demand and facility requirements through the Air Cargo Terminal Area Planning Spreadsheet Model. The process flow of the spreadsheet model is to gather data about an air cargo terminal’s physical components and determine whether the facilities meet current and forecasted demand. With the inventory in hand, along with the facility ratio matrix determined from survey data and estimation factors, the airport planner can go through the model exercise, starting with the air cargo tonnage and market share inputs, then follow the typical path of current cargo apron, warehouse, trucking facility space for integrated express, passenger carriers and all-cargo carriers/third party handlers. This exercise is intended to provide understanding as to why airport planners use certain cargo related ratios and planning factors; it is not intended as a “one-size-fits-all” guidebook of specific metrics for facility demand requirements. The model was developed with the goal to enhance learning and providing a starting point for the airport planner in the air cargo facility requirements analysis.