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

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Page 3-1 CHAPTER 3: SUBTASK 2.2—LITERATURE REVIEW: REVIEW AND ANALYSIS OF AIR CARGO FACILITY-RELATED AIRPORT MASTER PLANS CHAPTER OVERVIEW A review and analysis of 12 airport master plans completed between 2005 and 2011 was conducted to identify recent innovative trends in air cargo facility master planning. The literature review focused on four components of the air cargo master planning process: air cargo volume forecasts, air cargo aircraft operations forecasts, facility requirements, and recommendations. For air cargo volume forecasts, the master plans primarily used traditional methodologies that involved statistical models and consideration of factors such as the airport’s historic air cargo volumes and global, national, and local air cargo and socioeconomic trends and forecasts. Four master plans, however, were more innovative and used market share approaches or probabilistic forecasting. A minimal number of airport master plans used unique approaches to forecasting air cargo aircraft operations. Standard techniques involved consideration of factors such as historical air cargo tonnage per aircraft operation, existing and future aircraft sizes, and global and national forecasts prepared by Boeing, Airbus, and the FAA. One airport, however, used a methodology that involved the development of average annual day cargo schedules and another used probabilistic forecasting. Notably missing from the airport master plans were innovative methods used to estimate future air cargo facility requirements. Facility requirements were calculated through the application of planning factors based on widely-used industry standards or local conditions. Lastly, the airport master plans typically provided recommendations related to future air cargo development for a twenty year period. One airport master plan looked ahead 50 years and provided guidance for reserving land for future airport expansion. INTRODUCTION The review of existing data regarding airport master planning is important to set the stage in terms of a historical perspective and serve as a foundation for the study. As part of this task the research team compiled and reviewed past airport planning and master planning documents from a wide variety of airport types. Nineteen airport master plans were collected and, based on their scale of operations and depth of master plan detail, 12 were reviewed and analyzed with a focus on air cargo planning content. Table 3-1 identifies airport master plans collected and reviewed. Each airport in Table 3-2 has a summary profile on the following pages which identifies source data utilized in each master plan as it relates to air cargo. Figure 3-1 displays the location of each airport with a summary profile. In addition, the collection of airport master plans identifies additional air cargo relevant attributes such as: • Airport characteristics (number of annual operations, number of runways) • Community characteristics (population, major industries) • Airport primary purpose (passenger, cargo, general aviation, military, local demand, refueling) • Geographic location • Airport ownership and management structure

Page 3-2 Table 3-1 Airport Master Planning Documents Collected. Airport Name Reviewed and Analyzed YEAR ACI Cargo Rank 2010 Boise Air Terminal/Gowen Field Yes 2010 74 Capital City Airport Yes 2006 94 Casper/Natrona County International Airport No 2008 115 Cincinnati/Northern Kentucky International Yes 2005 17 Colorado Springs Airport No 2010 109 Dallas/Fort Worth International Airport Yes 2009 11 Dona Ana County Airport at Santa Teresa, NM Yes 2008 NA George Bush Intercontinental Airport Yes 2006 15 Kansas City International Airport Yes 2009 45 Memphis International Airport Yes 2010 1 Norman Y. Mineta San Jose International Airport No 2011 66 Oakland International Airport Yes 2006 12 Palm Beach International Airport No 2006 95 Piedmont Triad International Airport Yes 2010 46 Portland International Airport Yes 2010 28 Portland International Jetport (Maine) No 2007 NA San Antonio International Airport Yes 2010 33 Sioux Falls Regional Airport – Joe Foss Field No 2006 84 Washington-Baltimore Regional Air Cargo Study No 2008 40 SOURCE: CDM Smith.

Page 3-3 Table 3-2 Airport Master Planning Documents Reviewed and Analyzed. City ACI Cargo Volume Rank Cargo Activity Prime Consultant Year Cargo Volume Forecast Method Boise Airport, BOI Boise, ID 74 Non hub Ricondo & Associates 2010 National and historic trends Capital Region International Airport, LAN Lansing, MI 94 Non hub RS&H 2006 Historical trends Cincinnati/ Northern Kentucky International Airport, CVG Cincinnati, OH 17 Non hub (at time of analysis) Landrum & Brown 2005 None Dallas/Fort Worth International Airport, DFW Dallas/Fort Worth TX 11 Hub URS 2009 Blended growth rates Dona Ana County Airport, 5T6 Santa Teresa, NM NA Non hub WHPacific 2008 Blended growth rates and market share based on El Paso cargo activity George Bush Interconti- nental Airport, IAH Houston, TX 15 Gateway DMJM Aviation 2006 Local and national economic trends Kansas City International Airport, MCI Kansas City, MO 45 Non hub Landrum & Brown 2009 Historical trends Memphis International Airport, MEM Memphis, TN 1 Hub Jacobs Consultancy 2010 FedEx trends and historic trends Oakland International Airport, OAK Oakland, CA 12 Hub 2006 Average Annual Day Piedmont Triad International Airport, GSO Greensboro, NC 46 Hub Jacobs Consultancy 2010 Boeing and Airbus, Historic belly and mail Portland International Airport, PDX Portland, OR 28 Gateway Jacobs Consultancy 2010 Econometric model & probabilistic forecasts San Antonio International Airport, SAT San Antonio TX 33 Non hub AECOM 2010 Blended growth rates SOURCE: CDM Smith.

Page 3-4 Figure 3-1 Locations of Airports with Summary Profiles. (SOURCE: CDM Smith, Google Earth Pro). An airport master plan is a document used to guide decisions for the airport’s future layout and environs. A typical airport master plan includes inventory, forecasts, facility requirements, alternatives, financial plan/implementation, and an airport layout plan or schematic of what the airport layout will be in the future. All facilities within the environs of the airport, such as terminal space, automobile parking, and cargo facilities are included in the plan. For large airports, the airport planning process is often continuous where plans for specific functions of the airport are conducted incrementally. For example, the airport may conduct an airport wastewater treatment master plan or develop plans for deicing facilities. Other ongoing planning studies may be related to passenger and cargo security issues. These separate studies offer a continuous flow of information to airport decision makers and in order to keep the airport compliant in the regulated world of aviation. BOISE AIRPORT – BOISE, ID AIRPORT OVERVIEW Boise Airport is the primary commercial service airport serving the City of Boise, southwestern Idaho, eastern Oregon, and northern Nevada. Owned by the City of Boise and operated by the City of Boise Department of Aviation and Public Transportation, the airport is located approximately three miles south of downtown Boise. Primary access to the airport is provided via Interstate 84. The airport occupies an approximate 5,000-acre site. Boise Airport experiences approximately 122,000 annual aircraft operations. The airport has two parallel runways, both of which are equipped with instrument landing systems. Runway 10R/28L is the primary runway, measuring 9,763 feet long by 150 feet wide. This runway was upgraded to a Category III Instrument Landing System with minimums to 600 feet in 2007, which gives the airport one of the safest

Page 3-5 and most efficient landing systems in the United States. The airport is also supported by a recently expanded passenger terminal building and a new air traffic control tower which opened in 2013. Boise Airport is classified as a small hub airport in the National Plan of Integrated Airport Systems (NPIAS), offering non-stop passenger service to 18 cities in the United States. According to the 2010 Airports Council International – North American Final Rankings (ACI-NAFR), the airport is currently served by eight airlines which handled over 2.8 million passengers in 201; in addition, more than 36,000 metric tons of air cargo was handled at the airport in 2010 by the passenger airlines as well as FedEx Express, UPS, and Western Air Express. AIRPORT MASTER PLAN The previous master plan update for Boise Airport was finalized in 2001. Over the next five years, several capital improvement projects were completed at the airport, and there were significant changes in the aviation industry. It was therefore determined in 2006 that a Master Plan Update was necessary. Ricondo & Associates, Inc. was selected to complete the Master Plan Update, which was finalized in 2009. Air Cargo Methodology Existing Conditions In 2007, the cargo and passenger carriers at Boise Airport included FedEx Express, UPS, United Airlines, Delta Airlines, Horizon Air, and Southwest Airlines. Combined, these carriers handled 46,676 U.S. tons of freight and 253 U.S. tons of mail at the airport in 2007. FedEx Express and UPS both leased land at the airport, with FedEx Express’ operations occurring in the airport’s cargo area east of the passenger terminal apron and UPS’ operations occurring south of the Runway 10R threshold. FedEx Express’ facility was used for package sorting, equipment storage, and office space. UPS’ facility included one building and ramp space. The passenger airlines, which handled mail as belly cargo, had cargo facilities located in the cargo area east of the terminal apron. Total building space dedicated to air cargo at the airport was approximately 73,700 ft2. Air Cargo Volume Forecasts Air cargo volume forecasts for the Master Plan Update were prepared in 2006 using 2005 as the base year. The forecasts were based on the following assumptions: • National aviation industry trends • Policy goals and objectives of Boise Airport • Historical activity levels and trends in air service at the airport • Local socioeconomic and demographic trends, compared with State and national trends Separate forecasts were prepared for air freight and air mail, which are discussed below. • Air Freight – Air freight was projected to grow at a growth rate greater than four percent between 2005 and 2015 and between three and four percent between 2015 and 2030. The lower growth after 2015 was projected because the Boise cargo market would mature and other airports in the region would become more competitive. It was noted that although total air freight handled at Boise Airport was down in 2005, future growth would occur along with the rest of the U.S. It was also noted that Boise Airport would potentially experience growth in air freight due to congested airports and air cargo facilities at other airports in the region and lower operating costs in Boise.

Page 3-6 Total air freight was forecast to grow from approximately 91.5 million pounds in 2005 to approximately 233.6 million pounds in 2030 at an annual growth rate of 3.8%. • Air Mail – Beginning in 2001, a major change occurred in the transport of air mail at Boise Airport. Historically, the United States Postal Service (USPS) carried express mail in the U.S. However, in August 2001, the USPS entered into a long-term contract with FedEx Express to carry the majority of express mail. Also, following the events of September 11, the passenger airlines were prohibited from carrying mail over 16 ounces. This resulted in an even greater volume of domestic mail handled by FedEx Express. Because of these events and the uncertainty associated with potential security changes, Ricondo & Associates noted the difficulty in forecasting short-term volumes of air mail at Boise Airport. Long-term volumes were assumed to eventually experience normal growth. Total air mail volume handled at Boise Airport was forecast to grow from approximately 2.1 million pounds in 2005 to approximately 4.9 million pounds in 2030 at an annual growth rate of 3.4%. Aircraft Operations Forecasts Aircraft operations forecasts for FedEx Express and UPS were prepared using the same assumptions used for the air cargo volume forecasts. Historical operations data for FedEx Express and UPS showed annual operations decreased at the airport from 10,412 (42% of all air carrier flights) in 2000 to 7,208 (33% of all air carrier flights) in 2005. The overall number of future operations was projected to increase, but the share of these flights was projected to decrease, primarily due to FedEx Express and UPS increasing the size of their aircraft. Total aircraft operations by the integrated cargo carriers were forecast to grow from 7,208 in 2005 to 11,427 in 2030 at an annual growth rate of 1.9%. Facility Requirements To estimate future air cargo facility requirements, Ricondo & Associates utilized planning factors represented by the number of annual tons of air cargo processed per square foot of cargo building. The airport’s existing utilization ratio, based on 2007 air cargo volumes, was 0.64 annual U.S. tons per square foot. Ricondo & Associates noted that this was below the industry standard of 1.5 annual U.S. tons per square foot. Two sets of future facility requirements were estimated by applying the existing utilization ratio and the industry standard ratio to the air cargo volume forecasts. Based on the existing utilization ratio, it was estimated that a total of 187,300 ft2 of building space would be required in 2030, with 113,610 ft2 of additional building space necessary. Based on the industry standard ratio, it was estimated that a total of 79,500 ft2 of building space would be required in 2030, with 5,810 ft2 of additional building space necessary. The analysis concluded that Boise Airport’s existing cargo facilities could accommodate some future demand in the short term, but utilization at the industry standard level of 1.5 U.S. tons per square foot may not be possible due to the carriers’ preferences and secondary uses within the buildings. A more detailed analysis of building space requirements would be necessary before future air cargo facilities were developed. With regard to cargo building dimensions, the Master Plan Update noted the typical depth of 100 to 150 feet for cargo buildings. Ricondo & Associates assumed future cargo buildings at Boise Airport would have a depth of 125 feet. Based on this Table and the existing utilization ratio, a building approximately 900 feet long would be required. Using the industry standard ratio, 46 linear feet of additional building space would be required.

Page 3-7 Master Plan Recommendations A concepts analysis identified air cargo development alternatives that could satisfy future demand, were responsive to the needs of the communities served by the airport, maximized revenue- generating opportunities, and effectively managed land uses. The existing air cargo facilities at Boise Airport were located in three separate areas, including east and west of the passenger terminal as well as south of Runway 10R/28L at the western boundary of the airport. It was noted that the existing configuration would result in redundant facility operations, increased costs for screening air cargo, and continued runway crossings for air cargo aircraft. Ricondo & Associates recommended consolidating the airport’s cargo facilities in one location south of Runway 10R/28L, which would promote the use of Runway 10R/28L for cargo operations and eliminate the need for cargo operations to cross runway 10L/28R. Two alternatives that met the goal of consolidating air cargo facilities south of Runway 10R/28L included a consolidated west cargo complex and a consolidated midfield cargo complex. The Master Plan Update selected the consolidated midfield cargo complex as the preferred air cargo development because it provided a consolidated location for security screening of air cargo shipments, resulted in more efficient use of air cargo facilities, and maximized expansion capabilities. CAPITAL REGION INTERNATIONAL AIRPORT – LANSING, MI AIRPORT OVERVIEW Capital Region International Airport is the primary commercial service airport serving the City of Lansing, the state of capital of Michigan, and the Tri-County area comprised of Clinton County, Ingham County, and Eaton County. Owned and operated by the Capital Region Airport Authority (CRAA), the airport is located approximately four miles northwest of downtown Lansing. Primary access to the airport is provided via North Grand River Avenue, from I-69/I-96 to the west or downtown Lansing to the southeast. The airport occupies an approximate 2,000-acre site. Capital Region International Airport experiences approximately 42,000 annual aircraft operations (AIC-NA, 2010). The airport has two parallel runways and a third crosswind runway. Runway 10R/28L is the primary runway, measuring 8,506 feet long by 150 feet wide, and is equipped at both ends with instrument landing systems. The airport is also supported by a 165,000 ft2 passenger terminal building. Capital Region International Airport is classified as a non-hub airport in NPIAS, offering daily non-stop service to Detroit, Michigan; Minneapolis, Minnesota; and Chicago, Illinois. The airport is currently served by three airlines which accommodated over 257,000 passengers in 2010 (AIC-NA, 2010). In addition, nearly 19,000 metric tons of air cargo was handled at the airport in 2010 (AIC-NA, 2010). AIRPORT MASTER PLAN The previous Master Plan Update for Capital Region International Airport was completed in 1995. As part of the continuous planning process, a Master Plan Update was completed in 2006. The consulting firm of Reynolds, Smith and Hills, Inc. (RS&H) was selected to complete the study, which considered 2003 through 2023 as the planning period.

Page 3-8 Air Cargo Methodology Existing Conditions In 2003, Capital Region International Airport was served by seven passenger airlines, including Comair, Midwest Connection, United Express, US Airways Express, Continental Connection, Allegiant Air, and Northwest Airlink. The airport was also served by two cargo carriers, United Parcel Service (UPS) and Superior Aviation, a contractor to UPS that served as a feeder airline to smaller market areas. Total air cargo handled by the passenger and cargo carriers in 2003, the majority of which was UPS, including express packages, mail, and other freight, was approximately 49.5 million pounds. This was a significant decrease from the airport’s peak of approximately 65.2 million pounds in 2000. Air cargo volumes were decreasing at the airport due to the effects of the economic recession and the events of September 11, 2001. The airport’s air cargo facilities were constructed in 1991 and were located on the east side of the airfield. Approximately 12,500 ft2 of building space was occupied by UPS, which included a sorting facility. Total ramp space dedicated to air cargo was approximately 15,000 yd2. Air Cargo Volume Forecasts RS&H noted that air cargo growth at Capital Region International Airport was historically tied to the economic and demographic characteristics of the Lansing region and the state of Michigan. Several regression analyses were conducted using historical population, employment, and per capita personal income data to determine which of these independent variables had the strongest correlation to historical air cargo tonnage at the airport. It was determined from these analyses that the population of the state was most strongly correlated to air cargo growth at the airport. Based on this methodology, total air cargo tonnage at Capital Region International Airport was forecast to increase from 65.2 million pounds in 2000 to 143.9 million pounds in 2023, representing an average annual growth rate of 3.5%. Air Cargo Aircraft Operations Forecasts RS&H provided limited information in the Master Plan Update regarding the methodology used to forecast cargo operations as well as the number of future cargo operations. The methodology was based on historical trends and forecast air cargo tonnage. Total air carrier cargo operations were forecast to increase from 1,358 in 2003 to 2,100 in 2023, representing an average annual growth rate of 2.2%. Facility Requirements Facility requirements that would accommodate projected air cargo tonnage through 2023 were developed for three facility components: • Air Cargo Processing Facility – UPS’ existing sort facility lacked the capacity to meet the demand during peak periods such as Christmas. Delays were experienced during these periods. UPS indicated that it was willing to accept the peak period delays as long as its facilities were able to maintain a 25% “surge potential” beyond the off-peak demand. RS&H used this criterion to develop estimates of future cargo processing facility requirements. In 2003, Capital Region International Airport processed approximately 4,000 pounds (2 U.S. tons) of air cargo per square foot of cargo building space. In 2000, when the airport processed the largest volume of air cargo in its history, the airport processed approximately 5,000 pounds (2.5 U.S. tons) per square foot. Based on this historical data and UPS’ desire to maintain a 25% surge potential, RS&H used the

Page 3-9 conservative planning factor of 4,000 pounds (two U.S. tons) per square foot to estimate future air cargo processing facility requirements. For 2023, it was estimated that a total of 36,500 ft2 of cargo processing space would be required to meet forecast demand. As mentioned previously, UPS’ existing facility totaled 12,500 ft2. • Aircraft Apron – To estimate future apron requirements, RS&H considered several factors including the airport’s existing apron space dedicated to air cargo, the aircraft types used by UPS and Superior Aviation (Boeing 757s and Cessna Caravans/Fairchild Merlins, respectively), and the forecasts of air cargo tonnage and aircraft operations. Calculations determined that the airport’s existing cargo apron had an approximate capacity for three Boeing 757s or a combination of two Boeing 757s, based on the general space requirements of 5,400 yd2 for a Boeing 757 and 2,100 yd2 for a Cessna Caravan or Fairchild Merlin. A typical day of UPS flights to UPS’ hub in Louisville, Kentucky was then compared with the ratio between total cargo tonnage and total cargo operations over the planning period, which showed that the existing apron did not require expansion to accommodate forecast cargo tonnage. However, it was noted that the analysis did not consider Superior Aviation’s activity or the possibility that an additional cargo operator would initiate service at the airport in the future. It was therefore recommended that approximately 15,000 yd2 of ramp space should be reserved for a potential additional cargo operator. • Landside Area – The landside areas (employee parking, truck docks, etc.) experienced delays during peak periods similar to the sort facility. It was assumed that the landside areas would need to be expanded throughout the planning period as the sort facility was expanded. Therefore, the percentage increase in sort facility requirements was applied to the landside areas to estimate future landside requirements. Using this methodology, the existing 4,500 ft2 of landside area would need to expand to 13,000 ft2 by 2023. Master Plan Recommendations RS&H recommended that a 45-acre site containing undeveloped land directly east of the airport’s existing cargo facilities should be reserved for future air cargo facility development. This site exceeded the 13 acres that would be required in the future. The recommended site had been previously identified by the CRAA for future cargo development. CINCINNATI/NORTHERN KENTUCKY INTERNATIONAL AIRPORT – COVINGTON, KY AIRPORT OVERVIEW Cincinnati/Northern Kentucky International Airport is the primary commercial service airport serving the Tri-State region comprised of Southwest Ohio, Southeast Indiana, and Northern Kentucky. Owned and operated by the Kenton County Airport Board, the airport is located 13 miles southwest of downtown Cincinnati in Northern Kentucky. Primary access to the airport is provided via I-275 and State Route 212. The airport occupies an approximate 8,000-acre site. Cincinnati/Northern Kentucky International Airport experiences approximately 178,000 annual aircraft operations (AIC-NA, 2010). The airport has three parallel runways and one crosswind runway, all of which are equipped with instrument landing systems. Runway 18L/36R is the primary runway, measuring 10,000 feet long by 150 feet wide. The airport’s newest runway, Runway 18R/36L, opened in December 2005 and measures 8,000 feet long by 150 feet wide. The airport is supported by three passenger terminal buildings, two of which currently serve airline passengers.

Page 3-10 Cincinnati/Northern Kentucky International Airport is classified as a medium hub airport in the NPIAS, offering non-stop service to 52 domestic and three international destinations, including Paris. The airport, currently served by seven passenger airlines, handled nearly 8.0 million passengers in 2010 (AIC- NA, 2010). In addition, more than 371,000 metric tons of air cargo was transported in 2010 at the airport, which is home to DHL Express’ main U.S. hub – one of three global “Super Hubs” from which DHL Express serves 220 countries (AIC-NA, 2010). AIRPORT MASTER PLAN During the course of this ACRP 03-24 project, the Kenton County Airport Board was in the process of completing a 2012 Master Plan Update for Cincinnati/Northern Kentucky International Airport. The study began in 2011 and was scheduled for completion in 2012 but was not published and released to the public until 2013. The Airport Board thought the update of the previous 2005 Master Plan Update was necessary because of several unpredicted changes in the U.S. aviation industry, including a severe economic recession, record high fuel prices, the reorganization of multiple network carriers under Chapter 11 bankruptcy protection, legacy airline consolidation, increased security measures and processes, advancements in technology of airline check-in procedures, and the evolution of airline fleets. The Cincinnati/Northern Kentucky International Airport 2012 Master Plan Update considered the possible effects of a potential operational transition through 2035 from an airport historically dominated by Delta Air Lines’ hub to a competitive multi-carrier environment. The update provided the Kenton County Airport Board an opportunity to identify and evaluate strategic business opportunities in an ever changing economic environment. Lastly, the update ensured the continued operation of a safe, efficient, and environmentally compatible airport. The 2005 Master Plan Update, initiated in 2003 and finalized in 2007, laid the foundation for future development at the airport through 2025. It is this 2005 study that was analyzed for this ACRP report since it was made available by Kenton County Airport Board to the research team. Going back further in time, the previous Master Plan Update for the airport was completed in 1996. The 1996 Master Plan Update identified facilities expected to be required through 2011. In 2003, the Kenton County Airport Board decided that a Master Plan Update was necessary because of several national and local changes in the aviation industry, including major growth and development in the Tri-State region, heightened security requirements, industry consolidation of airport hubs, and the relocation of DHL’s cargo sort hub to Wilmington, OH. Landrum & Brown, Inc. was selected to complete the 2005 Master Plan Update. Below is a summary of the 2005 Master Plan Update. Air Cargo Methodology Existing Conditions The all-cargo carriers serving Cincinnati/Northern Kentucky International Airport during the master planning process included DHL, FedEx Express, Target Logistics, and Northwest. Federal Reserve check haulers also operated at the airport. DHL operated a hub at the airport since 1984 and completed construction of a new 150-acre sort facility and aircraft apron in 2003. The passenger airlines providing belly cargo services included Delta Air Lines and its affiliates, United Airlines, American Airlines, and US Airways. The airport’s freight forwarders included PANNCO, OKI, and Emery Worldwide. Lastly, the USPS operated a facility on the airport. Annual cargo tonnage handled at the airport grew significantly between 1989 and 2003, increasing from 93,560 U.S. tons in 1989 to 425,600 U.S. tons in 2003. Likewise, annual air cargo aircraft operations experienced considerable growth, increasing from 19,950 in 1992 to approximately 40,000 in 2003. The growth in cargo tonnage and operations was primarily due to DHL’s hub operation. DHL

Page 3-11 announced in June 2004, however, that it was relocating its hub to Wilmington, OH in September 2005. DHL later relocated its U.S. hub from Wilmington, OH back to Cincinnati/Northern Kentucky International Airport in 2009. The following briefly describes the cargo facilities existing at Cincinnati/Northern Kentucky International Airport during the master planning process: • DHL – DHL’s cargo sort hub facility was located in the South Airfield between the Runway 36C and 36R ends. There was also a DHL sort hub facility no longer in use that was located in the airport’s west service area near the rental car facility. Because DHL was relocating their hub to Wilmington, OH, the new sort facility was underutilized. • FedEx Express – FedEx Express used a 5,000 ft2 portion of a joint-use air cargo building located near Terminal 1 in the passenger terminal area for processing cargo. • Delta Air Cargo – Delta Air Lines cargo operations were located northeast of the passenger terminal area in a 103,000 ft2 facility. Total truck and auto parking space available was 92,350 ft2. • USPS – The USPS occupied a building totaling 57,332 ft2 of space located northwest of the passenger terminal area. • Freight Forwarders o PANNCO – PANNCO’s air freight facility consisted of a 9,000 ft2 building located in the airport’s west service area. The facility handled freight forwarding for United Airlines and American Airlines via Worldwide Flight Services. o Emery Worldwide – Emery Worldwide’s 15,000 ft2 building was located north of the passenger terminal area within the airport’s west service area. Emery handled all truck- to-truck cargo and did not use aircraft at the airport. o OKI – The OKI air freight facility consisted of a 45,600 ft2 building located in the airport’s west service area. The building housed multiple tenants and was not used directly for air cargo operations. Air Cargo Volume Forecasts Forecasts of air cargo volumes at Cincinnati/Northern Kentucky International Airport were developed in a study separate from the 2005 Master Plan Update. In 2003, the Kenton County Airport Board completed a Terminal Area Master Plan (TAMP). The primary objective of the TAMP involved planning for an expanded terminal building designed to consolidate all airlines into a single facility. The 2005 Master Plan Update used the air cargo volume forecasts from the TAMP. The methodology used to derive the forecasts in the TAMP was not discussed in the 2005 Master Plan Update. In the TAMP, air cargo tonnage was forecast to increase from 425,600 U.S. tons in 2003 to nearly 2.2 million U.S. tons in 2025 at an average annual growth rate of 7.7%. Aircraft Operations Forecasts All-cargo aircraft operations were forecast in the 2005 Master Plan Update for the period 2003 through 2025. However, only limited information regarding the methodology used to derive the forecasts was available. Two important factors affecting the cargo operations forecasts were DHL’s relocation of its hub to Wilmington, OH in 2005 and the Check Clearing for the 21st Century Act (Check 21), which became effective in October 2004. Check 21 allowed banks to use electronic images of checks, which eliminated the need to transport checks. Check hauler cargo flights were projected to be phased out by 2010. After considering the effects of these factors on cargo operations at Cincinnati/Northern Kentucky International Airport, Landrum & Brown projected all-cargo operations to total 27,380 in 2010, with the assumption that other cargo carriers would increase operations following DHL’s departure. From 2010 to

Page 3-12 2025, moderate annual growth of one percent was expected. Cargo operations were projected to total 31,610 in 2025. Facility Requirements and Master Plan Recommendations Detailed future cargo facility requirements or recommendations were not available in the 2005 Master Plan Update because of DHL capacity and the uncertainty of future cargo operations at Cincinnati/Northern Kentucky International Airport. The 2005 Master Plan Update provided the following future cargo facility requirements and recommendations at the airport: • DHL – With DHL’s relocation of its hub to Wilmington, OH, Landrum & Brown assumed DHL’s South Airfield cargo facility would be re-used in some capacity in the future. No future growth projections were made for DHL. • FedEx Express – During the 2003 TAMP study, FedEx Express personnel stated they would need a 50,000 ft2 hangar to accommodate their needs through the planning period. Based on this information, FedEx Express’ future facility requirements in the 2005 Master Plan Update totaled 55,000 ft2 of cargo building space, plus aircraft ramp, auto parking, and circulation. • Delta Air Cargo – The 2005 Master Plan Update based Delta Air Lines’ belly cargo requirements on air cargo tonnage data and space requirements provided by Delta personnel during the 2003 TAMP study. Based on industry standards that blend belly, freight, and express cargo, a planning factor of 1.0 ton of air cargo per square foot of building space used in the TAMP study, Delta’s cargo building space requirements were projected to increase from 83,000 ft2 in 2000 to 117,100 ft2 in 2020. A planning factor of 1.1 ft2 of parking space per ton of air cargo was used in the TAMP study to project truck/automobile parking space requirements for Delta. According to the TAMP study, Delta’s existing 92,350 ft2 of parking space in 2000 would need to increase to 130,300 ft2 in 2020. When the building space and parking area requirements are combined, Delta had a surplus of 20,000 ft2 of total cargo facility space at the airport in 2000. By 2020, Delta was projected to have a deficit of 52,050 ft2 of total cargo facility space. • USPS – USPS personnel indicated during the TAMP study that the existing 57,332 ft2 facility would be adequate throughout the planning period. • Freight Forwarders o PANNCO – PANNCO’s air freight facility was located in an area that was identified for the future Concourse D airline gate expansion. The facility would require relocation to accommodate the Concourse D expansion. o Emery Worldwide – Emery handled all truck-to-truck cargo and did not use aircraft at the airport. Therefore, there were no air cargo requirements for this facility. Like the PANNCO air freight facility, the Emery facility would need to be relocated to accommodate the Concourse D expansion. o OKI – Because the OKI building was not used directly for air cargo operations, future requirements were not determined based on air cargo. Landrum & Brown noted the facility would be replaced as warehouse space as needed to accommodate the Concourse D expansion. DALLAS/FORT WORTH INTERNATIONAL AIRPORT – DALLAS-FORT WORTH, TX AIRPORT OVERVIEW Dallas/Fort Worth International Airport is the primary commercial service airport serving the North Central region of Texas and the Dallas-Fort Worth metropolitan area, known as the Dallas/Fort Worth Metroplex. Owned by the cities of Dallas and Fort Worth and operated by the Dallas/Fort Worth

Page 3-13 (DFW) Airport Board, the airport is located 18 miles from downtown Dallas and 24 miles from downtown Fort Worth. The airport is accessible via Highways 183, 360, 114, 121, and 635. The airport occupies over 18,000 acres of land. Dallas/Fort Worth International Airport experiences over 652,000 annual aircraft operations, making it the third busiest airport in the world in 2010. There are seven runways, all of which are equipped with instrument landing systems. The four primary runways include: Runway 17C/35C, which is 13,401 feet long by 150 feet wide; Runway 17R/35L, which is 13,401 feet long by 200 feet wide; Runway 18L/36R, which is 13,400 feet long by 200 feet wide; and Runway 18R/36L, which is 13,400 feet long by 150 feet wide. The airport is also supported by five passenger terminal buildings and two million square feet of cargo warehouse space. The airport is unique in that it has two active control towers and can accommodate four simultaneous aircraft arrivals under visual flight rules. Dallas/Fort Worth International Airport is a major commercial airline hub offering non-stop service to 145 domestic and 48 international destinations worldwide. The airport is currently served by 19 airlines, 11 domestic and eight international, which handled nearly 57 million passengers in 2010 (AIC- NA, 2010). The airport is the largest hub for American Airlines, serving as a central gateway to the airline’s extensive international and domestic network. In addition, more than 645,000 metric tons of air cargo was handled at the airport in 2010 by the passenger airlines, eight all-cargo airlines, and five integrators, including FedEx Express and UPS (AIC-NA, 2010). UPS operates a regional sort hub at the airport. AIRPORT MASTER PLAN The DFW Airport Board completed an Airport Development Plan (ADP) in 1997, the purpose of which was to guide development at Dallas / Fort Worth International Airport over the ensuing 10 years. The ADP focused on terminal capacity needs, airfield operational enhancements, and terminal-to-terminal passenger connectivity. With the implementation stage of the ADP completed and a new long-range vision for the airport needed, the DFW Airport Board contracted with URS Corporation (URS) to initiate a master planning process entitled “VFR 2030: Vision of the Future. Realized.” in 2007. The purpose of VFR 2030 was to develop a long-range plan for the airport that addressed the airport’s aging infrastructure, changes in the aviation industry, and changes in the DFW Airport Board’s corporate philosophy since the 1997 ADP. It would also serve as a guide to the DFW Airport Board’s individual departments to assist them in achieving the goals outlined in the Board’s Strategic Plan, which was updated in 2008. Air Cargo Methodology Existing Conditions VFR 2030 provided an inventory of existing land uses and facilities on Dallas/Fort Worth International Airport. The inventory indicated the existing leasehold areas related to the airport’s air cargo carriers totaled 252.7 acres. The inventory also indicated the existing leasehold areas related to warehouse space totaled 305.0 acres. Air Cargo Volume Forecasts Four separate air cargo volume forecasts were prepared during the VFR 2030 master planning process. These included baseline forecasts for the all-cargo carriers, integrators, and belly cargo, as well as an alternate high-growth scenario that assumed significant expansion of the UPS cargo hub at the airport. The methodology used for each forecast is described below:

Page 3-14 • All-Cargo – Separate forecasts were prepared for international all-cargo and domestic all-cargo. Historical data showed that approximately 94% of the air cargo handled by the all-cargo carriers at Dallas/Fort Worth International Airport is from international destinations and the remaining six percent is from domestic destinations. To forecast international all-cargo, URS examined the percentage of international all-cargo activity at the airport as a percentage of imports and exports in the airport’s catchment area, defined as a 12-hour drive time from the airport. Data showed this percentage increased from 2003 to 2006, so it was assumed that the airport’s international cargo market share of the catchment area would increase in the future. An increase of five percent was assumed by 2015 and an additional two percent by 2025 for a total market share increase of seven percent in the catchment area by 2030. These percentages were applied separately to future imports and exports in the catchment area. Boeing’s 2006 World Air Cargo Forecast 2006-2007 and Airbus’ 2006 Global Market Forecast 2006-2025, both of which contain growth rates for air cargo volumes transported between the world’s major geographic regions, were utilized to derive blended growth rates for exports and imports within those regions. Import/export data from 2006 specific to the Dallas/Fort Worth International Airport catchment area was grouped into the geographic regions in the Boeing and Airbus forecasts, which facilitated application of the blended growth rates. The market share assumptions for the airport’s catchment area were in turn applied to the blended growth rates to arrive at estimates of future air cargo tonnage at the airport by geographic region through 2030. Total international all-cargo at Dallas/Fort Worth International Airport was forecast to grow from approximately 290,000 U.S. tons in 2010 to approximately 1.0 million U.S. tons in 2030 at a growth rate of 6.5%. To forecast domestic all-cargo, URS calculated an average growth rate for U.S. domestic cargo from the growth rates used in the Boeing and Airbus forecasts (3.8% and 3.3%, respectively). Domestic all-cargo tonnage at Dallas/Fort Worth International Airport was forecast to increase from approximately 18,000 U.S. tons in 2010 to approximately 35,000 U.S. tons in 2030 at a growth rate of 3.5%. • Integrators – A growth rate of 3.5%, which is the average of the growth rates forecast for U.S. domestic cargo by Boeing and Airbus, was used to forecast cargo tonnage by carriers such as UPS and FedEx Express. Integrator cargo tonnage was forecast to increase from approximately 426,000 U.S. tons in 2010 to approximately 848,000 U.S. tons in 2030. • Belly Cargo – URS noted the inconsistent growth in belly cargo activity at the airport between 2003 and 2006 due to market changes driven primarily by the events of September 11, 2001. As a result of the significant decline in belly cargo activity immediately after 2001 and the relatively flat activity since, a conservative growth rate of 0.5% was used for domestic belly cargo. Domestic belly cargo was forecast to increase from approximately 137,000 U.S. tons in 2010 to approximately 151,000 U.S. tons in 2030. A higher growth rate of 3.0% was used for international belly cargo based on the airlines’ focus on the more profitable international passenger traffic market. International belly cargo was forecast to increase from approximately 82,000 U.S. tons in 2010 to approximately 149,000 U.S. tons in 2030. • Alternate High-Growth Scenario – As noted above, an alternate forecast was prepared that assumed significant expansion of UPS’ regional hub at the airport. UPS’ Dallas hub is considered a regional hub along with Philadelphia International Airport and Ontario International Airport, with Ontario International Airport the largest of the regional hubs. This scenario modeled the potential for the Dallas hub to surpass Ontario International as UPS’ largest regional hub. Factors considered included airport and airspace capacity, availability of land for expansion, and a strong local economy. The forecast assumed UPS would expand its cargo facility between 2007 and 2009, followed by 26% growth per year in that carrier’s air cargo tonnage between 2010 and 2012. The 3.5% growth rate from the baseline forecast for the integrators was used for the 2012

Page 3-15 to 2030 period. Total air cargo tonnage handled by UPS under this forecast scenario was projected to increase from approximately 484,000 U.S. tons in 2010 to approximately 1.3 million U.S. tons in 2030 at an annual growth rate of 5.3%. Aircraft Operations Forecasts Two air cargo aircraft operations forecasts were prepared during the VFR 2030 master planning process. The baseline forecast projected aircraft operations for the all-cargo carriers and integrators. The methodology involved examining historical ratios of air cargo tonnage per operation and assuming further growth in the average size of aircraft and tonnage per operation. A growth rate of 3.9% was used, with operations increasing from approximately 28,000 in 2010 to approximately 62,000 in 2030. Similar to the air cargo volume forecasts, an alternate high-growth scenario for UPS was forecast that assumed significant expansion of the integrator’s hub at the airport. In this scenario, UPS’ aircraft operations were assumed to increase according to the growth in the integrator’s air cargo tonnage between 2010 and 2030, using the underlying assumptions from the baseline operations forecast. UPS’ operations were forecast to increase from 19,400 in 2010 to 46,300 in 2030 at an annual growth rate of 4.5%. Facility Requirements Requirements for future air cargo facilities for all-cargo carriers, integrators, and belly cargo at c International Airport were calculated using planning factors based on industry planning standards and trends as well as existing facility utilization at the airport. Requirements were calculated for cargo buildings, cargo apron, automobile parking, and truck courts. The existing facility utilization ratios and planning factors used to calculate space requirements for each type of cargo were as follows: • Cargo Buildings o All-Cargo – In the DFW master plan a planning factor of 1.5 ft2 per annual U.S. ton of air cargo was used for domestic all-cargo and a planning factor of 1.75 ft2 per annual U.S. ton of air cargo was used for international all-cargo. Existing facility utilization ratios were 10.09 ft2 per annual U.S. ton of air cargo and 1.99 ft2 per annual U.S. ton of air cargo for domestic all-cargo and international all-cargo, respectively. The URS Corporation noted that the existing utilization ratio of 10.09 ft2 of building space per U.S. ton of domestic cargo handled represented underutilized space in domestic cargo facilities. o Integrators – A high ratio of 0.8 ft2 per annual U.S. ton of cargo was used due to integrators’ use of cargo buildings for sorting packages rather than storing packages. The existing facility utilization ratio was 1.55 ft2 per annual U.S. ton of air cargo. o Belly Cargo – A planning factor of 1.75 ft2 per annual U.S. ton of air cargo was used for belly cargo. The existing ratio was 2.24 ft2 per annual U.S. ton of cargo. It should be noted that for all cargo types, future cargo building requirements used higher ratios than existing utilization ratios because it was assumed greater efficiency would be realized as air cargo volumes grew. • Cargo Apron o All-Cargo – A planning factor of 2.5 ft2 of apron space per square foot of building space was used for both domestic all-cargo and international all-cargo. The existing utilization ratio was 2.68 for international all-cargo and 2.14 for domestic all-cargo. o Integrators – A planning factor of 3.0 ft2 of apron space per square foot of building space was used. The existing utilization ratio was 4.31.

Page 3-16 o Belly Cargo – A planning factor of 1.25 ft2 of apron space per square foot of building space was applied only to account for existing apron area, since no additional apron areas for belly cargo were anticipated by 2030. The existing utilization ratio at the airport was 1.32. • Automobile Parking o All-Cargo – A planning factor of 0.4 ft2 of parking space per square foot of building space was used for both domestic all-cargo and international all-cargo. This ratio accounted for two lanes of parking and a drive through aisle for the length of the building. The existing utilization ratio was 0.28 for both types of cargo. o Integrators – Integrators typically have greater parking requirements due to the larger number of employees that work at their facilities. Therefore, a planning factor of 0.75 was used, compared with the existing utilization ratio of 0.82. o Belly Cargo – A planning factor of 0.3 ft2 of parking space per square foot of building space was used. Similar to all-cargo, this ratio accounted for two lanes of parking and a drive through aisle for the length of the building. The existing utilization ratio was 0.25. • Truck Court o All-Cargo – Based on the typical dimensions of truck courts (130 to 150 feet deep and extend the length of the cargo building) and the associated planning factor of 0.65 to 0.75 ft2 per square foot of building space, depending on the type of cargo, URS used a planning factor of 0.75 for domestic cargo. The existing utilization ratio was 0.41. Because international cargo buildings tend to be wider, a lower factor of 0.65 was used for international cargo. The existing utilization ratio was 0.59. o Integrators – A planning factor of 1.0 was used for integrators for two reasons. First, integrator facilities typically have truck courts that extend around multiple sides of the building. Second, integrator facilities often provide adjacent trailer storage space. o Belly Cargo – A planning factor of 0.75 ft2 per square foot of building space was used for the same reason identified for domestic all-cargo. The existing utilization ratio was 0.32. URS subsequently calculated facility space requirements by applying the planning factors described above to the air cargo volume forecasts. Recommended Air Cargo Development An alternatives analysis identified air cargo development alternatives that would provide facilities capable of meeting the facilities requirements through 2030. Alternatives that could meet the demand projected in the baseline and alternate air cargo volume and aircraft operations forecasts were considered. Two preferred alternatives were selected. One preferred alternative was selected under the baseline forecast scenario and a second was selected under the alternate high-growth forecast scenario. The preferred alternative selected under the baseline forecast scenario involved future development of 163 acres for international all-cargo and five acres for belly cargo. No additional acreage would be required for integrators and domestic all-cargo, as demand could be accommodated for these cargo types on existing sites. The preferred alternative selected under the alternate high-growth forecast scenario was similar to the preferred alternative selected under the baseline forecast scenario. The primary difference was that the integrators would require an additional 28 acres to support forecast demand. Domestic all-cargo would require 19 acres for future development, since the expansion of integrator facilities would require the relocation of existing domestic all-cargo facilities. Belly cargo facilities would also be relocated and would require 18 acres for future development.

Page 3-17 DONA ANA COUNTY AIRPORT – SANTA TERESA, NM AIRPORT OVERVIEW Dona Ana County Airport at Santa Teresa is a regional general aviation airport serving the New Mexican communities of Santa Teresa, Sunland Park, and Anthony; the western portion of El Paso County in Texas; and parts of northern Mexico. Owned and operated by Dona Ana County, the airport is located in the unincorporated community of Santa Teresa, which is 21 miles from downtown El Paso, Texas. Primary access to the airport is provided via Airport Road off of the Pete V. Domenici Highway (Highway 136). The airport occupies an approximate 1,700-acre site. According to FAA 5010 data, Dona Ana County Airport experiences approximately 35,000 annual aircraft operations. The airport is equipped with a single runway, Runway 10/28, which measures 8,500 feet long by 100 feet wide. The runway has visual approaches at both ends. The airport is also supported by a general aviation passenger terminal building. Dona Ana County Airport is classified as a general aviation airport in the NPIAS. The airport serves all types of general aviation, but focuses on business activity including jet and multi-engine aircraft. The airport also has daily air cargo service and is used extensively for flight training. AIRPORT MASTER PLAN The previous master plan for Dona Ana County Airport was completed in 1994. In 2006, the regional population was experiencing rapid expansion and there was significant public infrastructure and private development planned in the airport’s environs. An update of the 1994 master plan was initiated in 2006 in order to coordinate the future development and effects of the airport with the region’s growth. Dona Ana County selected WHPacific, Inc. to conduct the Master Plan Update, which was completed in March 2008. Air Cargo Methodology Existing Conditions In 2006, scheduled air cargo service at Dona Ana County Airport was provided by Nord Aviation, which had a base of operations at the airport using one DC-6 and two DC-3 aircraft. Nord Aviation’s cargo facilities consisted of 4,100 ft2 of cargo building area; one truck dock; 3,250 ft2 of landside support (employee parking, truck staging, and circulation); and 8,000 ft2 of apron area. Cargo transported by Nord Aviation consisted primarily of automotive parts that were ferried between Mexico and El Paso International Airport. Nord Aviation operated an estimated 18 flights per month from Dona Ana County Airport with an average payload of 1.25 tons. Total air cargo tonnage at the airport in 2005 was 270 tons, the highest annual cargo tonnage reported at the airport since 1990. Dona Ana County Airport possessed several characteristics that made it a desirable location for air cargo activity. These included convenient access from Interstate 10, location next to industrial parks, access to rail, and road accessibility to Ciudad Juarez’s maquiladoras (manufacturing plants located in Mexico along the border with the U.S.), an uncongested Port of Entry in Santa Teresa, and a growing high tech industry sector in the State of Chihuahua. As a result, Dona Ana County had been preparing the airport for air cargo traffic for several years by constructing an apron, implementing improvements to Runway 10/28 and associated taxiways, and completing the first phase of a runway lengthening project that would allow the airport to accommodate heavy, wide-body cargo aircraft, such as the Boeing 767, Lockheed Martin L10-11, and Douglas DC-10.

Page 3-18 Air Cargo Volume Forecasts To prepare air cargo volume forecasts for Dona County Airport, WHPacific reviewed historical air cargo data and previous air cargo forecasts for the airport, international and domestic air cargo trends and forecasts prepared by Boeing and the FAA, and historical trends and future projections of population, employment, and earnings in the geographic areas that affect Dona Ana County Airport. WHPacific noted that the airport’s air cargo history did not reflect volumes that might have occurred without the airport’s runway length and strength limitations. WHPacific also noted that the air cargo industry was moving toward more fuel efficient aircraft due to the spike in fuel costs in 2006 and that wide-body air cargo aircraft were not likely to operate at Dona Ana County Airport. The air cargo volume forecast for the 2008 Master Plan Update examined Dona Ana County Airport’s air cargo potential if runway constraints were removed. In 2006, El Paso International Airport was the local air cargo airport serving the majority of Dona Ana County’s air cargo market. Scheduled and express air cargo carriers used El Paso International due to its proximity to the large concentration of customers in El Paso. This fact, along with its close proximity to El Paso International, effectively precluded Dona Ana County Airport from attracting direct air cargo service by a major integrated express carrier. Air cargo activity at Dona Ana County Airport was therefore driven primarily by ad-hoc demand from Nord Aviation. WHPacific conducted an analysis to determine the potential for air cargo to be diverted from El Paso International Airport to Dona Ana County Airport due to limitations of air cargo facilities at El Paso. To perform the analysis, a forecast of air cargo tonnage was prepared for El Paso International Airport. The forecast used growth rates of 6.1% for international cargo and 4.8% for domestic cargo. The forecast also used the following planning factors for air cargo building space and apron space: • Air Cargo Building Space – Based on industry averages, 0.9 annual tons of cargo per square foot for was used for international cargo and 1.0 annual ton of air cargo per square foot was used for domestic cargo. • Apron Space – An estimate of 2.0 annual tons per square foot was used. Based on these growth rates and planning factors, air cargo tonnage at El Paso International was forecast to increase from 86,235 tons in 2005 to 198,467 tons in 2025; cargo building requirements were projected to increase from 78,744 ft2 in 2005 (288,000 ft2 existed in 2005) to 181,735 ft2 in 2025 (a surplus of 106,265 ft2); and apron space requirements were projected to increase from 40,962 yd2 in 2005 (164,560 yd2 existed in 2005) to 94,272 yd2 in 2025 (a surplus of 70,288 yd2). The analysis concluded that El Paso International’s air cargo facilities were capable of accommodating forecast demand through 2025. Although El Paso International Airport was the dominant air cargo airport in the region and had a surplus of air cargo facilities capacity, the potential still existed for Dona Ana County Airport to become a larger part of air cargo operations in the region if improvements to its runway were completed. WHPacific prepared a forecast of air cargo annual tonnage based on specific geographic areas that would benefit from improved air cargo service using a methodology applied in the 2003 New Mexico Airport System Plan. The geographic areas included the Santa Teresa market area, south-central New Mexico, and air cargo originating in Mexico that enters the U.S. via the Santa Teresa Port of Entry. The forecast assumed that 1) Dona Ana County Airport would benefit from air cargo demand originating and destined for the maquiladoras in Mexico and industries located in the State of Chihuahua, and 2) reliance of these maquiladoras and industries on air cargo would continue to increase during the planning period. The methodology involved reviewing U.S. Border Crossing data for trucks carrying air cargo from Mexico through El Paso ports to be enplaned at El Paso International Airport and applying the same ratio of air cargo volume per truck (105 pounds) to truck crossings with a Mexico origination through the

Page 3-19 Port of Santa Teresa. The analysis estimated that approximately 2,022 tons of air cargo crossed the border at the Port of Santa Teresa in 2006. It was assumed this air cargo tonnage would be included in future air cargo operations at Dona Ana County Airport once the improvements to Runway 10/28 were completed. WHPacific applied a growth rate of 3.8% to the Santa Teresa and south-central New Mexico geographic areas and a growth rate of 6.0% to cargo originating in Mexico and entering through the Santa Teresa Port of Entry. Each growth rates were taken from the Boeing World Air Cargo Forecast 2006-2007. The forecast developed using this methodology estimated that 11,100 tons of enplaned air cargo could potentially be captured by Dona Ana County Airport by 2025. The tonnage captured per geographic area was as follows: • 372 tons originating in the Santa Teresa area. • 4,611 tons originating in south-central New Mexico. • 6,188 tons originating in Mexico and entering the U.S. via the Santa Teresa Port of Entry. This volume of air cargo equated to two Boeing 737-300SF freighter aircraft operations each business day at the airport by 2025. Aircraft Operations Forecasts Following a review of historical aircraft operations data and previous aircraft operations forecasts for the airport, WHPacific developed all-cargo aircraft operations forecasts through 2025 for Dona Ana County Airport. All-cargo operations at the airport were conducted by air taxi aircraft, which included Nord Aviation’s DC-3 aircraft and a variety of chartered jets and turboprops. To forecast future activity by air taxi aircraft, a growth rate of 3.2% was used, which fell between the growth rate of 7.5% annual growth forecast by the FAA for turbine fixed wing aircraft hours flown nationwide and the 1.7% average annual growth shown in the FAA’s Terminal Area Forecast for the airport. The growth rate of 3.2% was the FAA’s national forecast for all general aviation and air taxi aircraft hours flown. Air taxi aircraft operations were forecast to increase from 3,197 in 2005 to 6,003 by 2025. The forecast also considered the potential for future cargo flights at the airport by large all-cargo aircraft. The average aircraft size assumed for the forecast was a Boeing 737 freighter aircraft, which was capable of transporting 20 tons per departure. Operations by large freighter aircraft were assumed to begin with one departure per weekday at the airport in 2010, when improvements to Runway 10/28 were anticipated to be completed. In all, aircraft operations by large all-cargo aircraft were projected to increase from 500 in 2010 to 1,000 in 2025 at an average annual growth rate of 4.7%. The forecast assumed large all-cargo aircraft would transport approximately 90% of the airport’s cargo, with the remainder transported by air taxi aircraft (such as Nord Aviation’s DC-3) carrying an average of three to four tons per departure. Facility Requirements The 2008 Master Plan Update identified future air cargo facility requirements for the near-term, mid-term, and long-term. Specific requirements were identified as follows, assuming a separate and dedicated area would be identified for cargo development and cargo grew as forecast: • Cargo Building Area – 4,900 ft2 in the near-term, 6,200 ft2 in the mid-term, and 10,000 ft2 in the long-term. Requirements were based on a planning factor of 0.90 tons of air cargo per square foot.

Page 3-20 • Truck Docks – Two truck docks in the near-term, two in the mid-term, and three in the long- term. Requirements were calculated using 0.3 docks per 1,000 ft2 of cargo building area. • Landside Support (Employee Parking, Truck Staging, Circulation) – 3,900 ft2 in the near-term, 4,950 ft2 in the mid-term, and 8,000 ft2 in the long-term. Landside support area was calculated as 80% of the cargo building size. • Apron Area – 8,000 yd2 in the near-term, 16,000 yd2 in the mid-term, and 16,000 yd2 in the long- term. Apron area was based on the estimated footprint of the largest aircraft times 3.0 for circulation (taxi lanes) and equipment staging. Near–term land area requirements for cargo facilities were estimated at two acres and long-term land area requirements were estimated at four acres. For long-term development, the Master Plan Update recommended a separate and larger area be reserved that was centrally located and allowed for easy expansion. Master Plan Recommendations The 2008 Master Plan Update included an alternatives analysis that resulted in the selection of a preferred development plan for Dona Ana County Airport. The preferred development plan consisted of the following cargo-related recommendations: • Extend Runway 10/28 length from 8,500 feet to 9,550 feet. • Upgrade Runway 10/28 to an Airport Reference Code (ARC) C-III runway with a pavement strength rating of 95,000 pounds (dual wheel gear) and potential for precision-type instrument approaches to both ends. • Construct a future crosswind runway that could be extended to 12,000 feet and made capable of serving heavy cargo aircraft in the future. Reserve a large lot at the far west end of the airport for an aviation tenant with significant development needs. The lot would have apron access and minimal taxi time to the Runway 10 threshold and the south end of the proposed crosswind runway. GEORGE BUSH INTERCONTINENTAL AIRPORT – HOUSTON, TX AIRPORT OVERVIEW George Bush Intercontinental Airport is the primary commercial service airport serving the City of Houston and the Gulf Coast Region of Texas. Owned by the City of Houston and operated by the Houston Airport System (HAS), the airport is located approximately 23 miles north of downtown Houston and is accessible via Beltway 8 and U.S. Route 59. The airport occupies over 11,000 acres of land. George Bush Intercontinental Airport experiences over 530,000 annual aircraft operations. There are five runways, four of which are equipped with instrument landing systems. Runway 08L/26R is 9,000 feet long by 150 feet wide, Runway 08R/26L is 9,402 feet long by 150 feet wide, Runway 09/27 is 10,000 feet long by 150 feet wide, Runway 15L/33R is 12,001 feet long by 150 feet wide, and Runway 15R/33L is 9,999 feet long by 150 feet wide. Three parallel Category III runways at the airport permit triple independent simultaneous all-weather flight operations. The airport is also supported by five terminal buildings and 880,000 ft2 of cargo area. George Bush Intercontinental Airport is a major commercial airline hub, one of the busiest airports in the world – ranked 6th in operations in 2010 – and one of the United States’ largest international hubs. The airport is currently served by 17 airlines, based both in the United States and internationally, which enplane over 20 million passengers annually. It is the largest hub for

Page 3-21 United/Continental Airlines. In addition, more than 389,000 metric tons of air cargo was transported at the airport in 2010 by 11 all-cargo airlines. AIRPORT MASTER PLAN The City of Houston owns a system of three airports which are operated by the HAS – George Bush Intercontinental Airport, William P. Hobby Airport, and Ellington Field. Following the completion of a multi-billion dollar Capital Improvements Program initiated by the HAS in the late 1990s to update many of the facilities within the airport system, the HAS completed a Master Plan for George Bush Intercontinental Airport in 2006. The Master Plan, prepared by the consultant team of DMJM Aviation, Reynolds Smith & Hills (RS&H), and Leigh Fisher Associates, provides a blueprint for the facilities needed through 2025 for the airport to continue to meet the air transportation needs of the region. Air Cargo Methodology Existing Conditions Air freight and air mail comprise the two types of air cargo at George Bush Intercontinental Airport. In 2002, the passenger and cargo airlines carried over 727 million pounds of freight and mail at the airport. Approximately 83% of the air cargo was freight, and the remaining 17% was mail. The passenger airlines carried 54% of the freight and 59% of the mail, while the cargo airlines carried the remaining 46% and 41%, respectively. Continental Airlines had the highest market share of the passenger airlines, with 41% of total air cargo. The cargo airlines with the highest market share were Federal Express and Airborne Express, accounting for 28% of the total air cargo at the airport in 2002. When the Master Plan for George Bush Intercontinental Airport was finalized in 2006, the airport consisted of approximately 215 acres of air cargo space located in two areas of the airport – the northeast and central cargo areas. Construction of an East Cargo Complex had recently been completed and UPS had relocated its operations/sort hub to the airport from Ellington Field. Air Cargo Volume Forecasts Forecasts of air cargo activity at George Bush Intercontinental Airport were based on a review of historical trends at the airport, regional economic indicators, and evolving industry trends. Key assumptions included the following: • Growth in air cargo will be primarily driven by local and national economic trends. • Passenger airlines will continue to account for the majority of the air freight and mail activity. • Local market consolidation (e.g., UPS’s move to the airport from Ellington Field in 2003) will force more air cargo traffic through the integrated carriers’ local hubs. • Additional international air service will further concentrate forwarder consolidations at the airport, leading to more growth. Based on these assumptions, the Master Plan projected the total volume of domestic and international air cargo to be carried by the passenger airlines and cargo airlines to grow from 780 million pounds in 2003 to 1.9 billion pounds in 2025. This represents an average annual growth rate of 4.2%. Aircraft Operations Forecasts Forecasts of air cargo aircraft operations were based on the forecasts of passenger activity and air cargo volume. Key assumptions used in preparing the forecasts included the following:

Page 3-22 • Consistent with historical trends, air carrier operations would be approximately 2.0 times the number of commercial airline (passenger and cargo) aircraft departures. • The average aircraft size for air carrier and regional/commuter service would increase. • Average passenger and air cargo load factors would increase according to the fleet mix forecast prepared during the forecast effort. Based on these assumptions and the fleet mix forecast developed in the Master Plan, forecasts of cargo pounds per departure were developed. The Master Plan projected total cargo air carrier operations to increase from 9,186 operations in 2003 to 17,000 operations in 2025, representing an average annual growth rate of 2.8%. Cargo commuter operations were projected to increase from 661 operations in 2003 to 4,000 operations in 2025, representing an average annual growth rate of 8.5%. Air Cargo Demand Capacity The Master Plan evaluated the warehouse, aircraft parking apron, truck docking area, and auto parking areas associated with the existing air cargo facilities at George Bush Intercontinental Airport to determine their capacity to adequately serve existing and forecast demand projected for 2005, 2010, 2015, and 2025. The methodology used ratios based on the comparison of gross facility areas with associated demand level. Recommended ratios were determined based on industry standards, interviews with airport staff, and on-site observations. The recommended ratios were compared with the actual ratios associated with the existing facilities and the projected demand from the air cargo forecasts. Separate demand/capacity analyses were conducted for the all-cargo carriers, integrated carriers, and belly freight carriers operating at the airport due to their distinctly different types of operations. To evaluate the warehouse and aircraft parking apron areas for the all-cargo carriers and integrated carriers, the DMJM Aviation/RS&H team used a rate of 1.5 ft2 of cargo building space for each annual ton of air cargo processed. This rate is based on a 1995 Airports Council International-North America (ACI-NA) survey of 75 domestic airports, which found the average warehouse utilization rate at airports handling air cargo is 1.5 ft2. For the belly freight carriers, a rate of 2.0 ft2 of warehouse space per annual ton of air cargo processed was used due to the methods used to process belly cargo and the inefficiencies associated with this type of air cargo operation. To evaluate the truck docking areas, ratios of 0.26, 0.62, and 0.25 ft2 of truck docking area per square foot of existing warehouse space was used for the all-cargo carriers, integrated carriers, and belly freight carriers, respectively. To evaluate the auto parking areas, ratios of 0.59, 0.66, and 0.35 ft2 of auto parking area per square foot of existing warehouse space was used for the all-cargo carriers, integrated express carriers, and belly freight carriers, respectively. Based on the existing 215 acres of airport property dedicated to cargo operations and the projected air cargo demand, the demand/capacity analysis concluded that 215 additional acres of air cargo area should be reserved on the airport for cargo expansion through the planning period. Air Cargo Development Plan The Master Plan recommended a 215-acre site located near the existing northeast cargo area should be reserved for future air cargo development on George Bush Intercontinental Airport. The recommended site provides excellent airside access, apron space capable of supporting forecast activity levels, convenient ground access to major roadways, and the flexibility to expand as dictated by demand. Future development of the site would require acquisition of approximately 130 acres of land and construction of two access roads. The Master Plan also identified a site for future off-airport air cargo development. The off-airport site is located near the existing northeast cargo area and provides a short commute for trucks between the two locations. It was envisioned the site would be occupied by freight forwarders.

Page 3-23 KANSAS CITY INTERNATIONAL AIRPORT – KANSAS CITY, MO AIRPORT OVERVIEW Kansas City International Airport is the primary commercial service airport serving the City of Kansas City and surrounding region. Owned and operated by the City of Kansas City, the airport is located approximately 15 miles northwest of downtown Kansas City. Primary access to the airport is provided via Interstate 29 to the east and Interstate 435 to the west. The airport occupies over 10,000 acres of land. Kansas City International Airport experiences approximately 147,000 annual aircraft operations (AIC-NA, 2010). The airport has two parallel runways and one crosswind runway, all of which are equipped with instrument landing systems. Runway 01L/19R is the primary runway, measuring 10,801 feet long by 150 feet wide. The airport is also supported by three passenger terminal buildings, which were renovated as part of the airport’s Terminal Improvement Program that was completed in 2004. Kansas City International Airport is classified as a medium hub airport in the NPIAS, offering non-stop service to 47 destinations. The airport is currently served by 10 passenger airlines which handled nearly 10.2 million passengers in 2010. Southwest Airlines is the airport’s largest passenger airline, with Frontier Airlines using the airport as a hub and crew base. In addition, approximately 87,000 metric tons of air cargo was handled at the airport in 2010 by the passenger airlines and four cargo airlines (AIC-NA, 2010). AIRPORT MASTER PLAN In the mid-2000s, the City of Kansas City’s Aviation Department and City Planning and Development Department determined that a new master plan was needed for Kansas City International Airport in order to accommodate the region’s growing transportation needs and to maintain the airport’s critical role as the region’s economic engine. Landrum & Brown, Inc. was selected to complete the Master Plan for the airport, which was initiated in 2006 and adopted as the official guide for development at the airport by the City Council for the City of Kansas City in 2008. The Master Plan’s primary goals were to revise the airport’s ground transportation access links, improve airline and passenger efficiencies, and provide guidance regarding on-airport land use. The Master Plan’s planning period was 2006 through 2025. Air Cargo Methodology Existing Conditions In 2006, Kansas City International Airport was a unique major commercial service airport because of its surplus of existing cargo capacity and land available for expansion. The airport was in an enviable position because of its ability to accommodate virtually any forecast air cargo demand for the foreseeable future. In addition to the airport’s unique expansion potential, the airport also enjoyed excellent interstate access due to its location at the center of the country. Mexico City Avenue, a dedicated cargo road located on-airport, provided access to Interstate 29, which in turn provided access to two major cross-country highways: Interstate 70 and Interstate 35. Kansas City International Airport had four active commercial cargo terminals with immediate airside access. Three of the terminals were multi-tenant facilities and one terminal was a single-tenant facility. The airport’s cargo facilities had a total capacity of approximately 251,000 ft2 of warehouse space, 1.3 million square feet of apron area, 602 automobile parking spaces, 132 truck parking spaces, and 103 loading dock doors. There was also a USPS facility with airside access and an on-airport trucking terminal with no airside access. These facilities are described below:

Page 3-24 • Aeroterm – The multi-tenant Aeroterm facility consisted of 46,347 ft2 of warehouse space, 121,970 ft2 of apron area, 107 automobile parking spaces, no truck parking spaces, and 16 loading dock doors. The Master Plan indicated that 100% of the apron space and office space were currently used, but only 70% of the warehouse space was used. The major tenant was UPS, which used 100% of the apron area but only 5,562 ft2 of the warehouse space. • Haith and Company – The multi-tenant Haith and Company facility consisted of 70,000 ft2 of cargo space, 500,000 ft2 of apron area, 103 automobile parking spaces, 30 truck parking spaces, and 38 loading dock doors. The warehouse space, ramp area, and office space were all 100% occupied. The major warehouse tenants were BAX Global with 20,000 ft2, followed by Southwest Airlines and DHL with 15,000 ft2 each. • AMB Property Corporation – The multi-tenant AMB Property Corporation facility consisted of 50,000 ft2 of warehouse space, 246,000 ft2 of apron area, 250 automobile parking spaces, 20 truck parking spaces, and 20 loading dock doors. The Master Plan indicated that 72% of the warehouse space and 65% of the apron area was occupied. The largest warehouse tenants were Evergreen and UPS, with 11,500 ft2 and 10,000 ft2, respectively. • FedEx Express – The single-tenant facility for FedEx Express included 85,000 ft2 of warehouse space, 400,000 ft2 of apron area, 142 automobile parking spaces, 82, truck parking spaces, and 29 loading dock doors. The facility was 100% occupied. • USPS – The USPS occupied an old terminal with 66,000 ft2 of building space and 35,000 ft2 of ramp area. The Master Plan noted that the facility was still in operation because of the diversion of priority mail to FedEx Express and UPS and deferred deliveries to all-truck operations. It was unlikely that the facility could be used for any other cargo-related tenant due to the facility’s condition and configuration. • Trucking Terminal – Forward Air occupied a trucking terminal with 30,000 ft2 of warehouse space, providing trucking services to the airport’s non-integrated cargo operators. The terminal was the newest of the airport’s cargo facilities. In 2006, integrated cargo carriers FedEx Express, UPS, BAX Global, Airborne, and DHL handled approximately 92% of the airport’s freight, with FedEx Express handling the largest percentage among these carriers at nearly 40%. Air Cargo Volume Forecasts The Master Plan prepared air cargo tonnage forecasts for Kansas City International Airport for the period 2006 through 2025. As part of the air cargo forecasts, Landrum & Brown considered a variety of factors and air cargo demand drivers. These included potential changes in air cargo security requirements following the events of September 11, 2001, off-airport cargo development, historical trends in air cargo tonnage at the airport, consumer demand, business investment, and modal competition. After evaluating these factors and demand drivers, several assumptions were used to develop the forecasts of air cargo tonnage. First, it was assumed that air cargo growth would occur over the forecast period as local and national population, employment, and income grew. Second, Landrum & Brown deemed it unlikely that the airport would secure international cargo routes during the planning period, and therefore would not experience the higher growth rates in international cargo projected by industry analysts. For domestic cargo, Landrum & Brown believed the national and regional hubs of the integrated carriers were more likely to experience the higher growth rates forecast for domestic cargo. Lastly, Landrum and Brown reviewed long-term forecasts of air cargo activity prepared by BACK Aviation Solutions (BACK) and Boeing. BACK Aviation Solutions provides strategic and technical consulting and data information services to the aviation industry. BACK projected domestic cargo in North America would grow at a rate of 1.4% through 2015, while Boeing projected growth at a rate of 4.1% through

Page 3-25 2023. Landrum and Brown assumed the long-term growth rate at Kansas City International Airport would fall between the BACK and Boeing growth rates. Based on these assumptions and Landrum and Brown’s experience, it was determined that a growth rate of 2.1% would be used to forecast air cargo growth in the Master Plan. For the period 2006 through 2025, air cargo was forecast to increase from 134,975 metric tons to 204,900 metric tons. Approximately 11% of the total air cargo tonnage was projected to be belly cargo throughout the forecast period. Aircraft Operations Forecasts Forecasts of all-cargo operations were prepared for the Master Plan based on the air cargo volume forecasts and the airport’s existing and projected aircraft fleet mix. Landrum and Brown projected that an additional daily medium-sized freighter would be added each year. Operations by aircraft type were forecast to grow as follows: • Wide-body Jet – Increase from 23% of cargo operations in 2005 to 28% in 2025. • Narrow-body Jet – Decline from 52% in 2005 to 49% in 2025. • Turbojet – Remain constant as a percent of total operations. • Turboprop – Decrease from 15% of cargo operations in 2005 to 13% in 2025. Overall, all-cargo operations were forecast to increase from 9,864 operations in 2005 to 13,940 operations in 2025 at a growth rate of 1.7%. Facility Requirements The Master Plan concluded that no additional air cargo facilities were required at Kansas City International Airport throughout the planning period. Landrum and Brown arrived at this conclusion after considering a variety of factors. These factors included the following: • Historical and Forecast Air Cargo Tonnage – Air cargo tonnage decreased almost every year between 1999 and 2005, falling from 161,625 metric tons in 1999 to 136,889 metric tons in 2005. Air cargo tonnage forecast for 2025 was only 25% greater than the airport’s historical peak year of 1999. • Geography – Kansas City’s geography, namely its central location and excellent interstate access, is more conducive to cargo transport by trucking than by air. • Regional Economy – The Kansas City region was primarily a traditional agricultural economy that lacked industries requiring the time-sensitive delivery of goods. The region was also sparsely populated, which did not favor a regional gateway operation by a cargo carrier. • Industry Planning Guidelines – Landrum and Brown used the International Air Transport Association’s (IATA) Airport Development Reference Manual to evaluate the airport’s existing and future cargo facility capacities. Based on the airport’s existing 251,347 ft2 of cargo terminal building space and IATA’s planning factor of 0.93 metric tons of cargo per square foot of cargo terminal building space for a cargo tenant using an average level of automation in its operations, Landrum and Brown determined that the airport’s existing cargo facilities could accommodate approximately 226,000 metric tons of cargo, which was more than the 204,900 metric tons forecast for 2025. IATA’s manual also provided a planning guideline for ramp space. This guideline stated that “the apron size for all cargo facilities lies in the range of four to five times that of the cargo terminal building area.” Kansas City International Airport had approximately 1.3 million square feet of ramp, which meant that the airport had a ratio greater than five times the ramp space to cargo terminal building area.

Page 3-26 Master Plan Recommendations Although the Master Plan did not identify the need for additional cargo facility capacity at Kansas City International Airport, Landrum and Brown noted the importance of protecting the airport’s existing concentrated cargo area for future growth by its cargo tenants and for the possible entry of a new major cargo carrier during the planning period. Accommodating future air cargo growth would not be an issue due to the airport’s abundance of developable land. MEMPHIS INTERNATIONAL AIRPORT – MEMPHIS, TN AIRPORT OVERVIEW Memphis International Airport is the primary commercial service airport serving the City of Memphis and the surrounding eight-county region, which includes Fayette, Shelby, and Tipton counties in Tennessee; DeSoto, Marshall, Tate, and Tunica counties in Mississippi; and Crittenden County in Arkansas. Owned and operated by the Memphis-Shelby County Airport Authority (MSCAA), the airport is located approximately seven miles southeast of downtown Memphis and four miles north of the Tennessee – Mississippi state line. Primary access to the airport is provided via Interstate 240, Plough Boulevard, and Tchulahoma Road. The airport occupies an approximate 5,000-acre site. Memphis International Airport experiences approximately 340,000 annual aircraft operations. The airport has four runways, all of which are equipped with instrument landing systems. Runway 18R/36L is 9,320 feet long by 150 feet wide, Runway 18C/36C is 11,120 feet long by 150 feet wide, Runway 18L/36R is 9,000 feet long by 150 feet wide, and Runway 09/27 is 9,000 feet long by 150 feet wide. The airport is able to operate in all weather conditions, handles all types of aircraft, and is outfitted with a surface movement guidance system allowing flight operations down to a runway visual range of 300 feet. Memphis International Airport is unique in that it is one of the few dual-purpose hubs in the United States. The airport is the world headquarters of FedEx Express and the world’s second busiest cargo airport, handling 4.2 million U.S. tons of cargo in 2010. FedEx Express operates its primary overnight package sorting facility at the airport and transported approximately 98.7% of all cargo handled at the airport in fiscal year 2010. A total of eight cargo airlines currently serve the airport. Memphis International Airport is also a major transfer hub for its largest passenger airline, Delta Air Lines. In all, the airport is served by four major and 15 regional scheduled passenger airlines which together enplaned more than ten million passengers in 2010. AIRPORT MASTER PLAN The MSCAA completed a Master Plan for Memphis International Airport in 2000 and subsequently implemented the majority of the recommendations over the ensuing years. The most significant changes at the airport during this period included the relocation of the Tennessee Air National Guard’s facilities to the southeast corner of the airport to accommodate FedEx Express’ expansion on the north side of the airport; development of a consolidated ground transportation center; the expansion of Concourse A to accommodate a regional jet facility; secure passenger walkways linking Concourses A, B, and C; and construction of the “East Cargo” development. The MSCAA initiated a Master Plan Update in 2007 due to significant FedEx Express growth and expansion since 2001, which necessitated an updated assessment of the airfield’s long-term capacity. The airport’s passenger terminal was also nearing the end of its design life, which required a new long-term vision for the airport. The MCSAA contracted Jacobs Consultancy to conduct the Master Plan Update, which was completed in 2010.

Page 3-27 Air Cargo Methodology Existing Conditions An inventory of Memphis International Airport’s existing conditions related to air cargo facilities indicated five areas on the airport dedicated to cargo operations. These included the following: • FedEx Express – FedEx Express’ Super Hub sorting facility, aircraft parking aprons, and ancillary support facilities were primarily located in the north airfield, both north and south of Runway 09/27. The Master Plan Update did not formally inventory FedEx Express facilities and did not include planning related to those facilities, since FedEx Express is responsible for its own planning and is located on private property adjacent to MCSAA property. • UPS – The Oakhaven Distribution Center, a 300,000 ft2 sorting hub, occupied 84 acres of land on the eastern airfield with an adjacent 9-acre aircraft parking apron. An additional 50 acres was located south of the Oakhaven Distribution Center for future expansion by UPS. • USPS – The USPS operated a 22,000 ft2 sort facility located on a 4-acre site south of the passenger terminal. • General Air Cargo – A 390,000 ft2 air cargo apron was located north of the passenger terminal apron. Located west of the air cargo apron were four air cargo warehouses that were originally intended for use by air cargo tenants. However, these warehouses were no longer used for air cargo since many of the cargo carriers that use the air cargo apron operate “through-the-fence” and use off-airport sorting and distribution facilities. • Cargo Central – In 2008, the MSCAA completed construction on Phase I of a new 70-acre multi- user air cargo complex. Phase I provided users with 15 acres of aircraft parking apron; 36,000 ft2 of office and warehouse space; direct access onto the local roadway system; secure airfield access; customs, security, and agricultural screening services; and a Land rack and Westpac refueling facility. At ultimate build-out, the site would include 250,000 ft2 of warehouse space and 30 acres of aircraft parking apron. Air Cargo Volume Forecasts As noted above, Memphis International Airport is the world headquarters for FedEx Express. Because FedEx Express handles the vast majority of the air cargo at the airport through hub shipments, two different air cargo volume forecasts were prepared. One forecast was prepared exclusively for FedEx Express based on market drivers unique to that carrier. A separate forecast was prepared for the other cargo carriers at the airport that handle local shipments, such as UPS, DHL, and potential carriers using Cargo Central. Baseline, low-growth, and high-growth scenarios for both forecasts were developed based on assumptions related to FedEx Express’ overnight express traffic, FedEx Express’ future focus on the international market, other cargo carriers’ growth based on the local Memphis economy, and future growth of the heavy freight and international markets controlled by the freight forwarding and third party logistics providers. Following the FAA’s review of the forecasts during the approval process, it was determined only the baseline scenario would be used in the Master Plan Update. In the baseline scenario, FedEx Express air cargo tonnage was forecast to increase from nearly 3.8 million in 2007 to nearly 4.1 million at a growth rate of 2.1%. Air cargo tonnage handled by other cargo carriers was forecast to increase from nearly 70,000 in 2007 to over 172,000 in 2027 at an annual growth rate of 4.6%. Total air cargo tonnage for all carriers was forecast to increase from more than 3.8 million in 2007 to nearly 5.9 million in 2027 at an annual growth rate of 2.2%. Aircraft Operations Forecasts Baseline, low-growth, and high-growth forecasts of air cargo aircraft operations were prepared based on a review of historical air cargo activity, industry trends, regional economic conditions, and other

Page 3-28 key factors that affect air cargo demand. As for the air cargo volume forecasts, only the baseline scenario was used in the Master Plan Update. In the baseline scenario, total air cargo aircraft operations were forecast to increase from 133,580 in 2007 to 157,800 in 2027 at an annual growth rate of 0.8%. Facility Requirements The Master Plan Update estimated air cargo facility requirements necessary to meet demand levels through 2027. Estimated requirements were prepared for warehousing and storage, aircraft parking apron space, landside access and vehicle parking, and land/site location based on best practices within the cargo industry. Each is discussed below. As noted above, FedEx Express is responsible for its own facility planning and as such, the Master Plan Update did not include facility requirements for this carrier. • Cargo Warehouse and Storage Requirements – The Master Plan Update utilized a ratio of 1.25 annual tons of air cargo per square foot of warehouse space to estimate future warehouse and storage requirements for most of the cargo carriers at Memphis International Airport. This ratio was applied to the air cargo volume forecast to arrive at estimated facility requirements for 2012, 2017, and 2027. UPS presented a unique situation and required a different methodology for estimating its future warehouse and storage requirements. UPS utilizes a relatively large amount of warehouse space for the volume of air cargo it handles at the airport (300,000 ft2 of warehouse space to process 27,000 tons of air cargo in 2007). This is due to the large amount of ground- based activity processed through their warehouse space. The Master Plan Update determined that UPS would require incremental increases in warehouse space to handle anticipated growth in air cargo and ground shipments. Specifically, warehouse and storage requirements were projected to increase from 300,000 ft2 in 2007 to 600,000 ft2 in 2027. • Aircraft Parking Apron Space – For the Master Plan Update’s 2007 baseline, Memphis International Airport provided approximately 400,000 ft2 of aircraft parking space on the UPS apron and 650,000 ft2 at Cargo Central. To estimate future apron space requirements, Jacob Consultancy used the projected aircraft fleet mix and the following assumptions: o A conservative peak four-hour period was used to estimate current demand during the design day. o Increases in required aircraft parking positions and increases in average day peak month air cargo operations would be proportional. o Approximately 40,000 ft2 of apron space would be required for each air carrier aircraft parking position. o Approximately 15,000 ft2 of apron space would be required for each feeder aircraft parking position. Based on these assumptions, the airport’s existing 10 air carrier and two feeder aircraft parking positions would need to increase to 19 air carrier and six feeder aircraft parking positions in 2027. This corresponds to 1,250,000 ft2 of apron space required in 2027. • Landside Access and Vehicle Parking – The Master Plan Update discussed general planning guidelines in the air cargo industry for truck staging areas and employee/customer parking spaces. For truck staging areas, 10 docks are planned for each 20,000 ft2 of warehouse space. For employee/customer parking, 20 spaces are recommended for every 10,000 ft2 of warehouse space. The Master Plan Update reiterated, however, that these are guidelines only and each future building would be designed differently based on modifications to the guidelines. • Location Requirements – Land/site location requirements in the Master Plan Update included the following: o Land east of the airfield should be reserved for future expansion of air cargo facilities in order to minimize interference with the passenger terminal complex and maximize access for vehicular/truck activity.

Page 3-29 o Consolidation of future air cargo facilities is recommended in order to preserve airport land for commercial development. o Cross-dock and distribution facilities should be an integral component of future development within the Cargo Central complex. Master Plan Recommendations The Master Plan Update recommended a future on-airport land use plan for the airport. Recommendations for the two primary on-airport areas related to air cargo included the following: • FedEx Express – Although facility requirements for FedEx Express were not estimated in the Master Plan Update, it was determined that FedEx Express would likely need to expand its land envelope at some point during the 20-year planning period, based on its historical growth of on- airport leased areas and its forecast activity levels. This would require relocation of leased areas adjacent to FedEx Express’ existing facilities. The Master Plan Update identified potential areas for FedEx Express expansion and the facilities that would need to be relocated as a result. • East Side – The Master Plan Update recommended that the existing air cargo areas accommodating UPS and Cargo Central should remain in their existing land use envelopes. OAKLAND INTERNATIONAL AIRPORT – OAKLAND, CA AIRPORT OVERVIEW Along with San Francisco International Airport and Norman Y. Mineta San Jose International Airport, Oakland International Airport is one of three international airports serving the San Francisco Bay Area. Owned and operated by the Port of Oakland, the airport is located approximately 6.5 miles from downtown Oakland. Primary access to the airport is provided via Interstate Highway 880, Hegenberger Road, and 98th Avenue to Airport Drive. The airport occupies an approximate 2,600-acre site. Oakland International Airport experiences approximately 220,000 annual aircraft operations (AIC-NA, 2010). The airport has four runways, two of which are equipped with instrument landing systems. Runway 11/29 is the primary runway, measuring 10,000 feet long by 150 feet wide. Oakland International Airport is also supported by two passenger terminal buildings, one of which was recently expanded and remodeled as part of the airport’s $300 million Terminal Improvement Program. The airport also broke ground on a new air traffic control tower in 2010, which opened in 2013. Oakland International Airport is classified as a medium hub airport in the NPIAS. The airport is currently served by ten airlines, nine domestic and one international, which handled nearly 9.9 million passengers in 2010. Southwest Airlines uses the airport as a focus city and is the airport’s largest airline. In addition, nearly 511,000 metric tons of air cargo was handled at the airport in 2010 by the passenger airlines as well as cargo carriers including FedEx Express, UPS, and Ameriflight. FedEx Express has a regional cargo hub at the airport (AIC-NA, 2010). AIRPORT MASTER PLAN The Airport Development Program (ADP) served as Oakland International Airport’s planning guidance document from the late 1980s to the mid-2000s. The ADP included several improvement and enhancement projects designed to accommodate increased passenger demand and enhance the airport’s reputation for convenience and on-time reliability, including the Terminal Improvement Program. Because of the airport’s need for a new planning document to provide development and land use guidance over a twenty year period, a new master plan was initiated in 2004. The master plan process included community participation as a result of various agreements settling litigation over environmental documents related to the ADP. The Port of Oakland’s Aviation Planning and Development staff prepared

Page 3-30 the master plan with assistance from other Port of Oakland staff as well as from specialty consultants for airfield simulation, aircraft noise analysis, and graphics. A Stakeholder Advisory Committee reviewed the technical work throughout the study. The master plan was finalized in 2006. Air Cargo Methodology Existing Conditions In 2004, Oakland International Airport was the 12th busiest airport in the United States in terms of air cargo tonnage, according to Airports Council International – North America. The airport handled approximately 700,000 metric tons of cargo in 2004, with FedEx Express handling over 80% of this volume. UPS was the second-largest cargo carrier at the airport, handling approximately 15% of the cargo tonnage in 2004. Other cargo carriers included ABX Air/DHL, Ameriflight, and some smaller air cargo feeders. The airport’s cargo facilities were located in two areas of the airport. South Field, defined as the airport area south of Ron Cowan Parkway, consisted of approximately 104 acres dedicated to air cargo. The FedEx Express Metroplex (FedEx Express’ west coast hub) was the largest of the cargo facilities in South Field. North Field, defined as the airport area north of Ron Cowan Parkway, included approximately 30 acres of cargo facilities for ABX Air/DHL, USPS, and Ameriflight. Air Cargo Volume Forecasts Forecasts of air cargo tonnage were prepared through 2025 based on the following methodology: • Used 2003 as the base year for air cargo tonnage. • Considered potential markets for future air cargo growth at Oakland International Airport. • Identified an appropriate air cargo growth scenario for the master plan based on the historical cargo growth rates at Oakland International Airport, San Francisco International Airport, and Norman Y. Mineta San Jose International Airport and the maturity of the air cargo market at Oakland International. Following a review of historical air cargo activity at the Bay Area airports and air cargo forecasts from the 2000 Regional Airport System Plan (RASP) and the ADP’s 2003 Supplemental Environmental Impact Report (SEIR), the growth rates from the historical data, RASP, and SEIR were used to develop forecast scenarios of future cargo tonnage for Oakland International Airport. The growth rates used in this analysis ranged from 3.59% to 7.84%. It was determined from this analysis that the low growth rate of 3.59% would be used to project future cargo tonnage at the airport. The growth rate of 3.59% represented the historic air cargo growth observed at the Bay Area’s airports since 1990 and was selected for several reasons. First, the previous air cargo forecasts from the RASP and SEIR were based on rapid air cargo growth at the airport between 1990 and 1998 and did not consider maturing of air cargo activity at the airport that resulted in decreased air cargo activity between 1998 and 2004. The RASP and SEIR used growth rates ranging from 4.52% to 7.84%. Second, it was determined that Oakland International Airport would be unable to capture further market share from other Bay Area airports, since the airport already handled approximately half of the Bay Area’s total cargo tonnage. Lastly, the Port of Oakland decided that it would not pursue an aggressive marketing strategy to encourage rapid air cargo growth at the airport. Air cargo tonnage was therefore forecast to increase from 0.7 million annual tons (MAT) in 2004 to 1.5 MAT in 2025.

Page 3-31 Aircraft Operations Forecasts Air cargo operations forecasts were prepared through the development of Average Annual Day (AAD) air cargo schedules for 2003 and 2010; however, due to the uncertainty of long-term forecasts, air cargo operations were not developed beyond 2010. AAD was used rather than average day peak month (ADPM) to develop the schedules, because, unlike airline passenger activity, air cargo volumes are relatively constant throughout the year. To develop the current (2003) air cargo schedule based on 0.7 MAT, the 2000 0.8 MAT air cargo flight schedule and fleet mix from the ADP environmental review documents were used to create a baseline of the airport’s air cargo activity, including the number of arrivals and departures by the air cargo airlines and the specific aircraft types used. Adjustments to these data were then made to reflect the air cargo operations and fleet mix observed in 2003. The total number of daily air cargo operations in the 2003 schedule for the master plan was 156 (102 at South Field and 54 at North Field). A 2010 0.9 MAT air cargo schedule was developed by interpolating between the 2003 flight schedule and a 2010 1.4 MAT flight schedule from the ADP environmental review documents. The total number of air cargo operations in the 2010 schedule for the master plan was 164 (102 at South Field and 62 at North Field). This schedule reflected the air cargo airlines fleet mix assumed for the 2010 1.4 MAT flight schedule from the ADP environmental review documents. Facility Requirements The master plan did not include an air cargo facility requirements analysis. Master Plan Recommendations The master plan recommended modest expansions of air cargo tenant facilities at their existing or relocated facilities due to the Port of Oakland’s decision not to pursue an aggressive air cargo development program. The following four areas on the airport were identified for potential air cargo development to accommodate forecast demand: • Area 1, North Field – Provided approximately 180 acres for air cargo development. • Area 2, Central Basin – Provided approximately 330 acres for air cargo development. • Area 3, south of Ron Cowan Parkway and north of the FedEx Express Metroplex – Allowed for modest expansion of FedEx Express’ facilities. • Area 4, the existing air cargo area at South Field and the Oakland Maintenance Center site – Allowed for modest expansion and relocation of existing air cargo facilities or both. Based on the low growth in air cargo tonnage and air cargo operations forecast for the airport, Areas 3 and 4 were selected for future air cargo development. Relocation of existing cargo facilities within Area 4 was recommended in order to accommodate potential new terminal development. PIEDMONT TRIAD INTERNATIONAL AIRPORT – GREENSBORO, NC AIRPORT OVERVIEW Piedmont Triad International Airport is the primary commercial service airport serving the Piedmont Triad Region, which encompasses the 12 North Carolina counties of Surry, Stokes, Rockingham, Caswell, Yadkin, Forsyth, Guilford, Alamance, Davie, Davidson, Randolph, and Montgomery and the six southern Virginia counties of Carroll, Floyd, Patrick, Franklin, Henry, and Pittsylvania. Owned and operated by the Piedmont Triad Airport Authority, the airport is located approximately 10 miles west of downtown Greensboro; 17 miles east of Winston-Salem; and, 10 miles

Page 3-32 north of High Point. Primary access to the airport is provided via Bryan Boulevard. The airport occupies an approximate 4,000-acre site. Piedmont Triad International Airport experiences approximately 90,000 annual aircraft operations (AIC-NA, 2010). The airport has two parallel runways and one crosswind runway, all of which are equipped with instrument landing systems. Runway 5R/23L is the primary runway, measuring 10,001 feet long by 150 feet wide. Construction of Runway 5L/23R was completed in 2009, with the runway becoming operational in January 2010. The airport is also supported by a passenger terminal building centrally located north of Runway 5R/23L and south of Runway 5L/23R. Piedmont Triad International Airport is classified as a small hub airport in the NPIAS, offering non-stop service to 13 domestic destinations. The airport’s six mainline airlines and associated regional airlines handled nearly 1.7 million passengers in 2010. In addition, more than 86,000 metric tons of air cargo was transported at the airport in 2010(AIC-NA, 2010). AIRPORT MASTER PLAN The last Master Plan for Piedmont Triad International Airport was completed in 1994. A Master Plan Update was initiated in 1997 but was suspended in 1999 due to FedEx Express’ selection of the airport for a new Mid-Atlantic hub. The Piedmont Triad Airport Authority recognized that the development of this hub would require detailed planning, design, environmental review, and permitting for major improvements to the airfield and surface transportation system. After the suspension of the 1997 Master Plan Update, several improvements were completed at the airport. A few of the more significant improvements included construction of the 9,000-foot parallel Runway 5L/23R and associated taxiway system, passenger terminal expansion to accommodate new passenger and baggage screening facilities, construction of the FedEx Express Mid-Atlantic Hub, expansion of the passenger terminal’s north concourse, construction of a cross-field taxiway system, construction of Honda Aircraft Company’s Headquarters and HondaJet Research and Development Facility, and the realignment of Bryan Boulevard. The Piedmont Triad Airport Authority decided in 2007 that because these and other improvements were completed or nearing completion, the time was right to plan for future growth of the airport. URS Corporation was selected to prepare a Master Plan Update, which was initiated in late 2007 and finalized in September 2010. The Master Plan Update was conducted for the following five primary reasons: • Respond to anticipated changing user demand and economic development opportunities, • potential extended timelines to develop needed airport improvements, • need for the development of a strategic long-range visioning approach to airport planning for Piedmont Triad International Airport, • strategic airport master planning considerations (beyond the typical 20-year planning horizon used in airport master plans), and • considerations of FAA’s Next Generation Air Transportation System (NextGen). Air Cargo Methodology Existing Conditions All-cargo historically accounted for the vast majority of cargo handled at Piedmont Triad International Airport. During the master planning process, five dedicated air cargo operators provided all- cargo service at Piedmont Triad International Airport. These operators included FedEx Express, DHL Express, Mountain Air Cargo, TradeWinds, and UPS. The passenger airlines provided a varying amount

Page 3-33 of belly cargo services. The Master Plan Update included the following inventory of air cargo building space and tenants: • FedEx Express Mid-Atlantic Sort Hub Facility – FedEx Express’ Mid-Atlantic Sort Hub Facility opened in 2009. The main sort building consisted of 317,200 ft2 of space. • Mountain Air Cargo – Mountain Air Cargo provided express cargo flight services to FedEx Express using Cessna 208 Caravan aircraft. • DHL Express – DHL Express leased 14,950 ft2 of space in Air Cargo Building #3. • TradeWinds – TradeWinds provided domestic and international air cargo transport services. It leased 24,300 ft2 of space within Hangar B, which was located on the south side of the airport. • UPS – UPS’ operations at the airport consisted of express overnight cargo and ground cargo. The air cargo operation was located in Air Cargo Building #2 and consisted of 3,276 ft2 of space. UPS operated a single Douglas DC-8-71CF/-73CF at the airport. • Belly Cargo Airlines – Delta and Continental airlines leased 3,780 ft2 and 7,560 ft2 of space, respectively, within Air Cargo Building #2. Comair leased 1,920 ft2 within Air Cargo Building #1. These airlines used their leased space for storage and maintenance of ground service equipment. • USPS – The USPS leased 12,001 ft2 of space within Air Cargo Building #2. • Ramp Services – Three separate ground handlers leased a total of 6,972 ft2 of space within Air Cargo Building #2. These tenants included Aviation Repair Technology, Quantem, and Jetstream. • TIMCO – TIMCO leased 10,000 ft2 of space within Air Cargo Building #3 for its Maintenance, Repair, and Overhaul (MRO) operation. In all, the airport’s air cargo facilities consisted of 495,517 ft2 of building space. Air Cargo Volume Forecasts Jacobs Consultancy, in association with URS Corporation, developed forecasts of all-cargo volumes for the period 2007 to 2030 for the Master Plan Update. Jacobs Consultancy noted that there would be significant growth in all-cargo volumes at Piedmont Triad International Airport as Phase I of FedEx Express’ sort hub facility began operations. Because future expansion of the facility would occur, resulting in the accommodation of future, unknown cargo volumes by FedEx Express and Mountain Air Cargo, only all-cargo volumes for the airport’s other all-cargo carriers were forecast in the Master Plan Update. To develop the all-cargo forecasts, Jacobs Consultancy reviewed forecasts for the U.S. domestic air cargo industry prepared by Boeing and Airbus. Boeing and Airbus forecast U.S. domestic air cargo to grow at a rate of 2.9% and 3.3%, respectively, over a twenty year period. These two growth rates were averaged to arrive at a growth rate of 3.1%, which was used to forecast all-cargo tonnage at the airport. Based on this methodology, total all-cargo tonnage (less FedEx Express and Mountain Air Cargo) was projected to increase from 27,082 metric tons in 2007 to 54,655 metric tons in 2030. For belly cargo tonnage, Jacobs Consultancy based the forecast on the Master Plan Update’s forecast of passenger aircraft operations (specifically the anticipated passenger airline fleet mix). Historical data showed that belly freight tonnage declined at the airport between 1999 and 2007 due to the airlines’ shift from air carrier to regional jet aircraft, new belly cargo restrictions following the events of September 11, 2001, and the growing trend for air cargo to be shipped by express carriers such as FedEx Express and UPS rather than freight forwarders that contracted with airlines. Jacobs Consultancy anticipated that belly cargo volumes would continue to decline because the passenger aircraft operations forecast indicated growth only in the commuter segment by turboprop aircraft that lack significant cargo capabilities. For facility planning purposes, however, Jacobs Consultancy assumed that the airport’s

Page 3-34 existing belly cargo volumes (approximately 900 metric tons per year) would continue through the planning period. Lastly, the Master Plan Update did not forecast future mail tonnage due to the significant decline in tonnage handled at the airport since 2000 caused by restrictions on mail weighing more than 16 ounces following the events of September 11, 2001, the USPS’ contract with cargo carriers to transport mail that was previously transported by the passenger airlines, and the shift in the fleet mix of passenger airlines from air carrier to regional jet aircraft. Aircraft Operations Forecasts Forecasts of all-cargo aircraft operations, including operations by FedEx Express and Mountain Air Cargo, were prepared for the Master Plan Update. To forecast operations by FedEx Express and Mountain Air Cargo, Jacobs Consultancy used estimates of aircraft operations with the new sort hub facility obtained from studies relating to the Environmental Impact Statement for Runway 5L/23R. These studies estimated that FedEx Express and Mountain Air Cargo operations would increase from 1,696 in 2007 to 12,350 in the first phase of the hub operation. Following expansion of the hub operation, operations were forecast to increase to an annual level of 32,760. To forecast aircraft operations by the other all-cargo carriers, Jacobs Consultancy calculated historical ratios of cargo tonnage per aircraft operation and applied adjusted ratios to forecasted all-cargo tonnage. Because the historical ratio in recent years was approximately 15 tons per operation, this ratio was used for the forecast. All-cargo operations by the cargo carriers other than FedEx Express and Mountain Air Cargo were projected to increase from 1,974 operations in 2007 to 3,644 operations in 2030. Total all-cargo aircraft operations at the airport were forecast to increase from 5,090 in 2007 to 36,404 in 2030 at an average annual growth rate of 8.9%. Facility Requirements and Master Plan Recommendations There were six existing air cargo facilities located on Piedmont Triad International Airport. As explained previously, these facilities totaled 495,517 ft2 and included Air Cargo Buildings #1, #2, and #3, TradeWinds Cargo Building, the former UPS-SCS building, and FedEx Express’ Main Sort Building. Because of declining belly cargo and mail tonnage at the airport since 2000, approximately 50% of these facilities’ capacity was being used for air cargo purposes. Jacobs Consultancy explained that Air Cargo Buildings #2 and #3 would need to be demolished due to current airfield improvements and FedEx Express’ future expansion of its hub operation. It was recommended that 71,280 ft2 of building space be replaced “in-kind” in order to accommodate each building’s existing tenants. Air Cargo Building #1 would be demolished due to its age and physical condition and would be replaced “in-kind” by constructing a new facility totaling 2,400 ft2. Lastly, the Piedmont Triad Airport Authority used storage space located in Air Cargo Buildings #1, #2, and #3 that was recommended to be replaced by constructing one building totaling 29,400 ft2. The size of each of the replacement facilities was calculated by increasing each tenant’s existing square footage by 20%. In all, a total of 103,080 ft2 of replacement cargo building space would need to be constructed. As noted above, one of the reasons the Piedmont Triad Airport Authority initiated the Master Plan Update in 2007 was to look beyond the typical 20-year planning window traditionally used in airport master plans. The Airport Authority desired insight regarding how and in which geographic direction the airport might grow over a 21 to 50 year period. The Master Plan Update therefore included long-range visioning and planning guidance provided by Dr. John D. Kasarda, Chief Executive Officer of Aerotropolis Business Concepts who provided his expertise on “airport cities”, aviation infrastructure, economic development, and competitiveness. The concept of the “Aerotropolis,” is defined as a new

Page 3-35 urban form emerging at airports around the world in which aviation-oriented businesses and associated residential and retail development are drawn to the airport environs and the transportation corridors radiating from them. In the Master Plan Update, Dr. Kasarda noted the unique opportunity the Piedmont Triad Airport Authority faced in terms of the airport’s long-term development. With the opening of the FedEx Express Mid-Atlantic Sort Hub Facility and increased airport capacity created by the construction of Runway 5L/23R, there was likely to be significant on- and off-airport development not witnessed previously by the Piedmont Triad Airport Authority. Both air-intensive industries and other sectors would increasingly consider the airport environs an attractive site for relocation or expansion, which would change the region’s long-term economic role. Dr. Kasarda noted, however, that the airport area would also become increasingly attractive to non-complementary economic activities ranging from residences to consumer retail. Other commercial and industrial developments not closely tied to aviation would also likely be drawn to the airport and its environs. To guard against developments that could encroach on future needed airport expansion and prevent long term options for aviation-related economic activities that would contribute to Piedmont Triad International Airport’s emerging role as the Central Business District (CBD) of the Piedmont Triad Aerotropolis, Dr. Kasarda recommended the Piedmont Triad Airport Authority implement zoning, tax abatements, and a land acquisition program in the near future. PORTLAND INTERNATIONAL AIRPORT – PORTLAND, OR AIRPORT OVERVIEW Portland International Airport is the primary commercial service airport serving northwest Oregon and southwest Washington. Owned and operated by the Port of Portland, the airport is located approximately five miles northeast of downtown Portland, OR and three miles southeast of downtown Vancouver, WA. Primary access to the airport is provided via Interstate 205. The airport occupies an approximate 3,400-acre site. Portland International Airport experiences approximately 223,000 annual aircraft operations (AIC-NA, 2010). The airport has two parallel runways, both of which are equipped with instrument landing systems, and one crosswind runway. Runway 10R/28L is the primary runway, measuring 11,000 feet long by 150 feet wide. The airport is also supported by a passenger terminal building consisting of five concourses. Portland International Airport is classified as a medium hub airport in the NPIAS, offering non- stop service to 50 domestic and five international destinations. The airport is currently served by fifteen passenger airlines which handled nearly 13.2 million passengers in 2010. Alaska and Horizon Airlines use the airport as a regional hub. In addition, more than 190,000 metric tons of air cargo was handled at the airport in 2010 by the passenger airlines as well as nine cargo airlines (AIC-NA, 2010). AIRPORT MASTER PLAN The Port of Portland completed a master plan for Portland International Airport in 2000. This master plan, completed during a period of strong economic growth, anticipated continued expansion of the airport and major airport improvements in the future, including a potential third runway and new passenger terminal. After the completion of this master plan, there were significant changes in the aviation industry caused by events such as the terrorist attacks in 2001, economic recession, and rising fuel costs. There were also changes in the planning and development process for the airport. Historically, the Port of Portland operated Portland International Airport under a Conditional Use Master Plan approved by the City of Portland. This approval had to be renewed every eight to ten years.

Page 3-36 The approval process involved the City’s review of all airport development projects to ensure mitigation of development affects. This process was burdensome for the Port of Portland, required technical expertise regarding airport growth that the City of Portland lacked, and limited the public’s involvement in airport development decisions. As a result, a collaborative planning process referred to as “Airport Futures” was created beginning in 2001. Airport Futures involved the Port of Portland, City of Portland, and Portland, OR-Vancouver, WA community with the objective of creating a long-range master plan for Portland International Airport and a City land use plan governing the airport and its environs. Sustainability and livability were important principles incorporated throughout the process. Jacobs Consultancy was selected to complete the Master Plan Update for Portland International Airport, which was initiated in 2007 and finalized in 2010. Because of the changes in the aviation industry since the 2000 master plan, the 2010 Master Plan Update provided flexibility to accommodate previously anticipated activity levels, but recognized that a third parallel runway and new passenger terminal would not be needed by the study’s planning horizon year of 2035. Air Cargo Methodology Existing Conditions In 2007, ten all-cargo and integrated express cargo airlines handled approximately 280,000 U.S. tons of cargo at Portland International Airport. It is important to note that the 2010 Master Plan Update defined cargo as both freight and mail. The primary passenger airlines that carried belly cargo included Alaska Airlines, American Airlines, Continental Airlines, Delta Air Lines, Lufthansa German Airlines, Northwest Airlines, Southwest Airlines, United Airlines, and US Airways. Total land area dedicated to air cargo facilities was approximately 200 acres, total building space was approximately 763,500 ft2, and total ramp space was approximately 2.3 million ft2. Cargo facilities used by the passenger airlines for belly cargo were located north of Runway 10R/28L in the North Cargo Complex, Northeast Cargo Complex (vacant in 2007), and Southeast Cargo Complex. The all-cargo and integrated cargo carriers used facilities located south of Runway 10R/28L in the AirTrans Cargo Center. Additional cargo facilities were located south of Runway 10R/28L at the airport’s Southwest Ramp. Air Cargo Volume Forecasts Unconstrained air cargo volume forecasts were prepared using 2006 as the base year and 2035 as the planning horizon year. The forecast process involved extensive collaboration between Jacobs Consultancy, Port of Portland, City of Portland, Metro (the Portland-Vancouver region’s Metropolitan Planning Organization), the public, a peer reviewer, and other key stakeholders. The key steps of the process were as follows: • Review of the 2000 Master Plan forecasts and historical air cargo activity from 1976 to 2006. • Collection and analysis of data related to the key issues and trends affecting future aviation demand at Portland International Airport. Key issues and trends were grouped into five main categories that included a) aviation industry, b) regional/economic, c) global, d) technology, and e) external event. • Development of an econometric model that related cargo tonnage to total personal income for the Portland-Vancouver region. • Development of probabilistic forecasts of air cargo tonnage. Probabilistic forecasting is an innovative tool in the development of aviation forecasts, because it allows for the assessment of the uncertainty associated with future aviation demand.

Page 3-37 Low (10th percentile), medium (50th percentile), and high growth (90th percentile) forecast scenarios were prepared. The Master Plan Update was based on the medium growth scenario, but because probabilistic forecasting was used, the Master Plan Update had the flexibility to accommodate the high growth or low growth forecasts. Total air cargo tonnage for the medium growth scenario was projected to increase from 285,000 U.S. tons in 2006 to 732,000 U.S. tons in 2035 at an average annual growth rate of 3.3%. Aircraft Operations Forecasts The forecasts of air cargo tonnage were used to generate probabilistic all-cargo airline aircraft operations forecasts. The methodology involved estimating the percentages of future cargo tonnage to be carried by air carrier and commuter aircraft. In 2006, air carrier and commuter aircraft transported approximately 94% and six percent of the cargo carried by the all-cargo carriers at Portland International Airport, respectively. Jacobs Consultancy increased the air carrier percentage slightly over the planning period. Once the shares between aircraft sizes were estimated, total air carrier cargo operations were calculated by dividing the cargo tonnage to be carried by all-cargo carriers by estimates of cargo tons per departure for both air carrier and commuter aircraft. In 2006, this ratio was approximately 27.7 U.S. tons per departure for air carrier aircraft and approximately 0.58 U.S. tons per departure for commuter aircraft. Both ratios were increased over the planning period, because the all-cargo carrier fleet was expected to include larger aircraft and regional feeder cargo carriers were anticipated to transport greater air cargo volumes to other airports in the region with developing markets. Similar to the air cargo volume forecasts, low, medium, and high growth forecast scenarios were prepared for the all-cargo airline aircraft operations. All-cargo airline aircraft operations for the medium growth scenario were forecast to increase from 33,184 operations in 2006 to 52,320 operations in 2035 at an average annual growth rate of 1.6%. Facility Requirements Facility requirements that would accommodate projected air cargo tonnage through 2035 were developed for three facility components: • Processing and Warehouse Space – The Master Plan Update did not include the USPS’s facility (114,500 ft2) in the facility requirements planning process since the facility was used for ground sorting purposes only. Therefore, in 2007, there was a total of 649,039 ft2 of cargo building and office space at Portland International Airport. The consultant used a square feet per annual ton ratio. The total building utilization rate (square feet per annual ton of cargo processed) at the airport was 2.32 in 2007, which was lower than the utilization rates at many North American airports with cargo facilities. It was noted that the low building utilization rate at the airport may partly be attributable to inefficient space allocation. To develop a utilization rate for the Master Plan Update, Jacobs Consultancy considered the utilization rates assumed for the 2000 Master Plan, the existing utilization rate at the airport, and the planned utilization rates at selected peer airports, including Ontario International Airport, Tampa International Airport, Seattle-Tacoma International Airport, and San Diego International Airport. Based on this analysis, the Master Plan Update used the ratio of 1.50 ft2 per annual ton of cargo to forecast future cargo building requirements for belly cargo and all-cargo facilities. In 2035, it was estimated that approximately 1.1 million square feet of cargo building space would be required at the airport, a deficiency of approximately 449,000 ft2. The deficiency was due to requirements for the all-cargo facilities. • Ramp Area – There were approximately 256,000 yd2 of cargo ramp area at Portland International Airport in 2007. Jacobs Consultancy noted that its experience indicated a planning factor of 7.5

Page 3-38 ft2 of ramp per annual ton of cargo handled by the all-cargo carriers was appropriate to estimate ramp area requirements for the all-cargo category. For belly cargo, which requires a minimal amount of ramp area, a planning factor of 1.0 ft2 of ramp space per ton of air cargo was used. By applying these planning factors, it was estimated that 565,000 yd2 of ramp space would be required by 2035. This represented a deficiency of 309,000 yd2, the majority of which related to all-cargo operations. • Landside Areas – The landside area requirements were approximately equal to the cargo building requirements. In 2035, approximately 1.1 million square feet of landside area would be required. In all, the total land requirement to accommodate the air cargo tonnage forecast for 2035 was estimated at 167 acres. A total of 206 acres were available for cargo operations in 2007. As such, the airport had existing land to accommodate the forecast demand. Master Plan Recommendations Following a thorough alternatives analysis, the Master Plan Update recommended strategies for accommodating future air cargo demand. The airport’s existing facilities for belly cargo provided approximately 236,000 ft2 of cargo building space, which exceeded the 2035 requirements of 93,000 ft2. It was expected, however, that some of these facilities would be demolished in the future to accommodate other development. The Master Plan Update recommended several strategies to deal with this eventuality, including cargo-specific follow-on studies and consolidation of belly cargo facilities in the Southeast Cargo Complex. For all-cargo facilities, it was concluded that the AirTrans Cargo Center, which as of 2007 was used for all-cargo processing, was well-designed with excellent airside and landside access. The Master Plan Update recommended that the AirTrans Cargo Center should remain the airport’s primary all-cargo processing area. The recommended strategies for future all-cargo facility development, which would be necessary at every planning activity level (PAL) during the planning period, included utilization of available land near the AirTrans Cargo Center in the near-term and utilization of land in the airport’s Southwest Quadrant in the long-term (2022–2035). SAN ANTONIO INTERNATIONAL AIRPORT – SAN ANTONIO, TX AIRPORT OVERVIEW San Antonio International Airport is the primary commercial service airport serving the San Antonio metropolitan area, which is comprised of Atascosa, Bandera, Bexar, Comal, Guadalupe, Kendall, Medina, and Wilson counties. Owned and operated by the City of San Antonio, the airport is located approximately seven miles north of downtown San Antonio. Primary access to the airport is provided via Loop 410 and SH-281. The airport occupies an approximate 2,600-acre site. San Antonio International Airport experiences approximately 177,000 annual aircraft operations (AIC-NA, 2010). The airport has two air carrier runways, both of which are equipped with instrument landing systems, and one general aviation runway. Runway 12R/30L is the primary runway, measuring 8,502 feet long by 150 feet wide. The airport is also supported by two passenger terminal buildings. Construction of the new Terminal B was completed in 2010 as part of the Airport Expansion Program initiated following the airport’s 1998 Master Plan. San Antonio International Airport is classified as a medium hub airport in the NPIAS, offering non-stop service to 28 destinations in the United States and two in Mexico. The airport’s nine mainline airlines and 11 regional affiliates handled over 8.0 million passengers in 2010 (AIC-NA, 2010). In addition, nearly 124,000 metric tons of air cargo was transported at the airport in 2010.

Page 3-39 AIRPORT MASTER PLAN The Airport Expansion Program initiated as part of San Antonio International Airport’s 1998 Master Plan included several major projects in addition to the construction of Terminal B. A long-term parking garage was constructed in 1999, the U.S. 281 North Connector providing direct elevated access from SH-281 North to the terminal and parking facilities at the airport was opened in 2001, and a Terminal Renovation and Concession Redevelopment Plan was completed in 2003. In 2009, the City of San Antonio began planning for the airport’s next phase of growth by initiating the San Antonio International Airport Vision 2050 Master Plan. The Vision 2050 Master Plan evaluated the airport’s future role in the south-central Texas region and examined how the airport could serve as an economic engine, enhance trade relationships, facilitate an integrated multi-modal transportation system, and protect the region’s natural, historical, and cultural resources. The City of San Antonio hired the consulting firm AECOM to complete the Master Plan, which was approved by San Antonio City Council in March 2011. Air Cargo Methodology Existing Conditions In 2008, San Antonio International Airport was served by several all-cargo and integrated cargo operators and forwarders. The integrated cargo airlines included DHL, FedEx Express, and UPS. The airport’s all-cargo airlines included Ameriflight, Astar Air Cargo, and Martinaire. CEVA Logistics (Eagle Global Logistics) served as a ground cargo handler. The airport transported approximately 142,000 metric tons of cargo in 2008, with FedEx Express and UPS handling approximately 87% of this freight volume. Approximately 76% of the total air cargo was freight and the remaining 24% was mail. The airport’s cargo facilities were located in two areas on the airport: the West Cargo Complex and the East Cargo Complex. These facilities are described below: • West Cargo Complex – The West Cargo Complex accommodated the West Air Cargo Terminal and USPS. The West Air Cargo Terminal, owned by the City of San Antonio and partially leased to cargo handlers and airlines, consisted of an 82,560 ft2 warehouse. Lessees included Cargo Airport Services, Southwest Airlines Air Cargo, Delta Air Lines, Mexicana de Aviacion, and American Airlines. The USPS occupied a 52,000 ft2 customer service and shipping facility. The West Cargo Complex consisted of a total of 9.5 acres of ground lease; 164,729 ft2 of building space; 8,430 yd2 of ramp area (used only for ground support vehicle loading and storage); and 172,880 ft2 of landside area. • East Cargo Complex – CEVA Logistics, DHL, FedEx Express, and UPS were located in the East Cargo Complex. The air cargo facilities in this area consisted of a total of 34.5 acres of ground lease; 104,000 ft2 of building space; 117,340 yd2 of ramp area; and 339,230 ft2 of landside area. In all, the airport’s air cargo facilities consisted of 44 acres of ground lease; 268,729 ft2 of building space; 125,770 yd2 of ramp area; and 512,110 ft2 of landside area. Air Cargo Volume Forecasts AECOM prepared unconstrained air cargo volume forecasts for San Antonio International Airport for the period 2008 through 2050. Several key factors that would affect aviation demand at the airport were considered when developing the forecasts, including population, economic and political conditions, financial health of the airline industry, airline service and routes, airline competition and airfares, airline consolidation and alliances, availability and price of aviation fuel, aviation safety and security concerns, and capacity of the national air traffic control system. In addition, independent national forecasts prepared by the FAA, Airbus, and Boeing were reviewed to serve as a benchmark for the San

Page 3-40 Antonio International Airport forecasts. The following summarizes the key points noted in the Master Plan regarding the long-term growth outlook for the air cargo market at the airport: • Future growth in Gross Domestic Product (GDP) would largely determine future cargo tonnage at the airport. • Anticipated growth in U.S. domestic air cargo tonnage would be lower than in international markets such as intra-Asia or domestic China, since the U.S. air cargo market is considered a comparatively mature market. • There would be slower growth in the rapid express shipment market than was experienced in the 1980s and 1990s, since this market was now considered to be mature. • High fuel and operating costs would continue to cause air cargo tonnage to shift from aircraft to truck transport. • Belly cargo tonnage would continue to decline and some belly cargo tonnage would likely shift to all-cargo carriers due to the 9/11 Commission Act of 2007, which required that 100% of cargo transported on passenger aircraft to be screened by August 2010. • Air freight was projected to grow at a higher average annual rate than mail due to the increased use of e-mail and other forms of electronic communication. Baseline, low-growth, and high-growth forecast scenarios were developed in the Master Plan. The baseline, low-growth, and high-growth forecast scenarios assumed different timeframes for the recovery of the national economy following the economic downturn that began in 2007. In the baseline forecast, which was selected as the forecast for the Master Plan, air cargo tonnage was projected to increase from 141,399 metric tons (33,624 metric tons of mail and 107,774 metric tons of freight) in 2008 to 553,472 metric tons (42,521 metric tons of mail and 510,951 metric tons of freight) in 2050 at an average annual growth rate of 3.3%. Aircraft Operations Forecasts Similar to the air cargo volume forecasts, baseline, high-growth, and low-growth forecasts were developed for all-cargo aircraft operations. The Master Plan provided limited information regarding the methodology used to prepare the forecasts. In the baseline forecast, which was selected as the forecast for the Master Plan, all-cargo aircraft operations were forecast to increase from 7,206 operations in 2008 to 20,000 operations in 2050 at an average annual growth rate of 2.5%. Facility Requirements Air cargo facility requirements were developed for the following three functional areas on the airport: • Processing and Warehouse Space – In 2008, San Antonio International Airport’s warehouse utilization rate for belly cargo was 0.37 tons of air cargo per square foot of warehouse space. For the all-cargo and integrated carriers, the warehouse utilization rate was 1.26 tons of air cargo per square foot of warehouse space. AECOM considered industry best practices related to cargo planning when developing the warehouse space requirements. According to AECOM, the generally accepted cargo facility use ratio for an automated facility is 0.75 tons per square foot, and for a highly automated cargo facility, the ratio is 1.5 tons per square foot. AECOM assumed that the warehouse utilization rate for belly cargo at the airport would increase from 0.5 tons per square foot in 2010 to 0.75 tons per square foot by 2030 as a result of the increased use of mechanization technology. AECOM also assumed a warehouse utilization rate of 1.2 tons per square foot for all-cargo facilities. Based on these assumptions, the airport’s existing belly cargo warehouse space of 29,525 ft2 would be able to accommodate the demand forecast for 2030, as only 22,460 ft2 would be required by 2030. For all-cargo activity, the airport’s existing 104,000

Page 3-41 ft2 of warehouse space would need to be expanded by 111,000 ft2 by 2030 to accommodate projected demand. • Ramp Area – San Antonio International Airport provided approximately 119,000 yd2 of cargo ramp area in 2008. To develop future ramp area requirements, AECOM used a planning factor of 7.5 ft2 of ramp per forecast ton of all-cargo airline freight. AECOM noted that this factor accounted for aircraft parking and staging areas for freight and support vehicles, but did not include ramp space required for aircraft circulation. To arrive at total cargo ramp requirements, the parking ramp space requirements were multiplied by a factor of 1.4 to account for service roads and taxi lanes meeting ADG-V separation standards. Based on a planning factor of 1.0 ft2 of ramp per forecast ton of belly cargo, the airport’s existing belly cargo ramp area of 2,210 yd2 would be able to accommodate the demand forecast for 2030, as only 1,870 yd2 would be required by 2030. For all-cargo activity, the airport’s existing 117,340 yd2 of ramp area would need to be expanded by 184,000 yd2 by 2030 to accommodate projected demand. • Landside Areas – The cargo landside areas at San Antonio International Airport included parking areas for visitors and employees, truck circulation, loading docks, and landscaping. The cargo landside area approximately equals the required cargo building area. The Master Plan determined that the airport’s existing 375,290 ft2 of landside area would not require expansion to accommodate forecast demand, as only 237,470 ft2 would be required by 2030. In all, AECOM determined that the airport’s existing belly cargo facilities had sufficient capacity to accommodate forecast demand through 2030. However, approximately 20 additional acres of land would be needed to support all-cargo operations in 2030. Master Plan Recommendations Expansion of the airport’s all-cargo facilities to accommodate the demand forecast for 2030 would have to occur either north or south of the airport’s existing cargo facilities due to the locations of environmentally sensitive sites and previously planned development. An analysis of four cargo development alternatives was conducted in the Master Plan to arrive at a preferred alternative. The recommended cargo development alternative consisted of a 50-acre development north of the existing cargo facilities with up to 13 aircraft positions. The site would require significant earthwork, but avoided environmental issues associated with two of the other alternatives. AECOM also noted that a minor FAR Part 77 tail penetration would occur at one of the wide-body aircraft parking positions located within this site. SUMMARY Chapter 3 represents a review of 12 recent airport master plans published between 2005 and 2011 and focused on each plan’s air cargo volume forecasts, air cargo aircraft operations forecasts, facility requirements, and recommendations. The next chapter focuses on the air cargo industry trends and operations.