PORT OF SEATTLE
MEMORANDUM
COMMISSION AGENDA – STAFF BRIEFING
Item No.
7b
Date of Meeting
Date of Meeting
February 22, 2011
DATE: February 4, 2011
TO: Tay Yoshitani, Chief Executive Officer
FROM: Michael Ehl, Director Airport Operations
Tom Green, Senior Manager Air Cargo Operations and Development
SUBJECT: Air Cargo Operations and Development Briefing
BACKGROUND:
The air cargo business at Seattle-Tacoma International Airport (Airport) supports the mission of the Port
of Seattle to create regional economic vitality. The Port owns and operates the Airport, a major
geographic gateway connecting passengers and cargo to the world by air.
The goal of the Aviation Division’s air cargo business unit is to pursue strategic growth while ensuring
sufficient facility infrastructure required to efficiently accommodate air trade volumes. The Airport is
the 19th largest cargo airport in the U.S. by tonnage, the 5th largest on the West Coast, and is the
premier international cargo gateway airport in the Pacific Northwest.
Air cargo at the Airport supports the Port of Seattle’s regional economic development initiatives by
providing the businesses of Seattle, King County and Washington State with cost-effective air access to
the global supply/distribution system; and to generate airside and landside revenue through the
development of logistics-related services. The air cargo logistics industry, together with the export-
oriented regional manufactures and producers it supports, is an important job-creating economic force.
Air cargo is an increasingly important component of the U.S. economy. In 2008, air freight accounted
for 24 percent of the total U.S. merchandise trade of $3.4 trillion. Nationally, air cargo exports
represented 48 percent of total air trade; in comparison, U.S. maritime exports represented only 29
percent of the total ocean-borne trade. Clearly, air cargo is an important component of achieving the
U.S. Commerce Secretary’s goal of doubling exports over the next five years. As an important
component of both the national and regional economy, air cargo is a core activity associated with the
Airport.
Attracting and growing air cargo is an important strategy for the Airport in supporting international air
passenger service, through increasing aircraft yields and attracting international airlines that want to co-
locate U.S. passenger and freighter operations. Increased air freighter activity also generates an increase
in airport landed weight and lowers airline cost per enplanement (CPE), an important metric to attract
and retain air passenger service.
COMMISSION AGENDA
Tay Yoshitani, Chief Executive Officer
February 4, 2011
Page 2 of 2
The Airport’s vision for an air cargo business model is to develop into a multifunctional air logistics hub
gateway incorporating both on-airport and off-airport resources.
STRATEGIC OBJECTIVES:
The overall strategy calls for a proactive approach to growing on-airport air cargo activity and
strengthening the linkage between on-airport cargo activity and off-airport third-party air cargo logistics
services.
A primary goal of the air cargo program is to position the Airport as a consolidation/distribution point
for air freight moving to and from Asia, North America and Europe by taking advantage of Seattle’s
strategic geographic U.S. West Coast location, its growing manufacturing and economic base, and
network of logistics services.
A related goal is to create an actively-managed off-airport logistics industry development program that
will generate long-term regional economic benefit.
An important element of the Airport air cargo logistics services business model should be a
strengthening of the physical and institutional linkages between on-airport cargo operations and off-
airport facilities and services provided by third-party logistics companies. This strategy will allow the
Airport to move beyond simple freight handling and transition into a value-added logistics and light
assembly center and ultimately into a supply chain hub for multinational companies that provides a
foundation for high-tech industry clustering.
A cornerstone of this transitional business model can be the development of the Sea-Tac International
Gateway Logistics Park. A logistics park is the physical clustering of logistics-oriented activities to
optimize the integration of logistics functions and provide a link between air and highway
transportation.
Today’s staff briefing will provide a background discussion of the facilities, operations, customers and
regional value of the Port’s air cargo services. The briefing will also describe the strategic growth
strategy that drives our current activities and planning, both on and off the airfield.
OTHER DOCUMENTS ASSOCIATED WITH THIS BRIEFING:
PowerPoint presentation.
PREVIOUS COMMISSION ACTION:
The Commission was last briefed on air cargo operations and development in September, 2007.
