Where Cargo Airports Are Located: Key Determinants Explained

The location of cargo airports is determined by a variety of factors, including their proximity to major population centers, transport links, and local land availability. For example, cargo hubs in the Central US are centrally located, have long runways, minimal airline traffic, and are close to rail and barge traffic. The nature of the cargo being transported also plays a role in the location of cargo airports, as cargo terminals for the small-package business are designed and constructed separately from conventional air-cargo terminals.

Proximity to customers

The proximity of cargo airports to customers is a critical factor in their success and functionality. Airports are considered interchange points for different modes of transportation, and their layout and design must consider access by surface vehicles. This includes not only passengers but also workers, visitors, and suppliers, who can collectively generate over 100,000 daily access trips at large airports.

Cargo airports are often located near logistics hubs, such as Chicago, which has been a logistics hub for rail and trucking infrastructure even before the advent of commercial cargo airplanes. This existing infrastructure provides significant advantages for distribution centres and cargo operations. For example, Heathrow Airport in London, which handles about a million tons of freight per year, is considered Britain's premier port in terms of throughput value.

The demand for cargo services also influences the location of cargo airports. Airports in areas with high demand, such as ORD in Chicago, become major cargo hubs. In contrast, areas with multiple airports, like LA and NYC, may have their cargo operations spread out over these airports. Additionally, the nature of the cargo being transported plays a role. For instance, the automotive industry in Detroit primarily relies on trains and trucks for transportation, resulting in less cargo traffic at the local airport (DTW).

The presence of large-scale cargo operations, such as FedEx in Memphis, can also shape the location of cargo airports. Cities like Memphis and Louisville had to invest significantly in improving their airports and infrastructure to accommodate these operations. This includes meeting specific requirements, such as in the case of FedEx, which required Memphis to fund improvements for it to base its operations there.

Central location

The central location of a cargo airport is a critical factor in its success and functionality. Airports are considered interchange points for different modes of transportation, and their location is chosen to facilitate connections between air, road, and rail networks.

A central location is advantageous as it allows for efficient distribution of goods to various destinations. For instance, Chicago's ORD airport is a prominent cargo hub due to its role as a logistics centre with established rail and trucking infrastructure. This enables effective distribution through various modes of transport. Similarly, Heathrow Airport in London is considered Britain's premier port in terms of throughput value, despite handling a relatively small volume of freight.

The centrality of an airport also attracts logistics companies, as they can leverage existing infrastructure and services, such as ATC, runway lengths, terminal sizes, and interstate accessibility. This results in a cycle where desirable locations attract more businesses, leading to further development and improvement of the airport and its surrounding infrastructure.

Additionally, central locations can help consolidate cargo operations that would otherwise be spread across multiple airports in a region. For example, Los Angeles and New York City have large cargo operations, but they are distributed across several airports in those areas. In contrast, a centrally located airport can handle a higher volume of cargo, making it a preferred option for cargo distribution.

The location of cargo airports is strategically chosen to optimize distribution networks and leverage existing infrastructure. Central locations play a crucial role in the efficiency and success of cargo operations, contributing to the overall functionality of the aviation industry and global supply chains.

Local tax incentives

Local governments may offer tax breaks, subsidies, or favourable tax rates to logistics companies and airlines to establish or expand their operations at designated cargo airports. These incentives can offset the high costs associated with constructing and operating cargo facilities, such as land acquisition, infrastructure development, and maintenance.

For example, a city may offer a tax holiday for a certain number of years to a logistics company willing to invest in a new cargo terminal at a local airport. This incentive could be extended to other related industries, such as freight forwarding or warehousing, to create a cluster of logistics activities, generating more economic activity and employment for the region.

Additionally, local tax incentives can be used to promote the utilization of existing airport infrastructure. For instance, an airport with vacant cargo facilities due to a loss of customers may offer reduced taxes or rates to attract new businesses. This strategy can help revitalize underutilized assets, creating a more efficient use of resources and potentially increasing tax revenues in the long run.

Furthermore, local tax incentives can be tailored to target specific industries or types of cargo. For example, an airport located near an automotive manufacturing hub may offer tax breaks to companies transporting automotive parts or vehicles, encouraging them to use the airport's cargo facilities. This focused approach can help develop specialized cargo airports that cater to the unique needs of specific industries.

Available land for expansion

The availability of land for expansion is a critical factor in the selection and development of cargo airports. Airports, especially those dedicated to cargo services, require vast areas of land to accommodate the infrastructure necessary for efficient operations. This includes not only the runways and taxiways but also the cargo terminals, warehousing facilities, and associated logistics operations.

The scale of these facilities varies depending on the volume of cargo handled. For instance, Heathrow Airport in London, despite handling only about a million tons of freight annually, is Britain's premier port in terms of value. This highlights the importance of efficient land utilisation, with well-designed cargo facilities and handling methods optimised for their specific context.

In some cases, the expansion of existing airports to accommodate increased cargo operations may be constrained by a lack of available land in the immediate vicinity. This can lead to a ripple effect, where surrounding areas experience increased demand for industrial and logistics space, driving up land values and potentially impacting local communities and the environment.

On the other hand, airports with ample land reserves can more easily adapt to the dynamic nature of the cargo industry. They can accommodate the construction of additional cargo terminals, expansion of existing facilities, or the implementation of new technologies and processes to optimise cargo handling. This flexibility enables them to attract more cargo operations and become preferred hubs for freight distribution.

Furthermore, the availability of land for expansion can influence the efficiency and cost-effectiveness of cargo operations. Sufficient land allows for the implementation of specialised cargo infrastructure, such as dedicated cargo roads, cargo aprons, and mechanised freight-handling systems. These enhancements not only improve the speed and safety of cargo handling but also reduce the overall cost of operations by optimising the movement of goods and vehicles within the airport.

Accessibility for surface vehicles

The accessibility of an airport for surface vehicles is influenced by its location and surrounding infrastructure. For example, Chicago's dominance as a logistics hub is attributed to its established rail and trucking infrastructure, making it an attractive location for cargo operations. Similarly, Memphis has become a significant cargo hub due to investments in large-scale infrastructure improvements to accommodate FedEx's operations.

The nature of cargo and freight handling methods also impacts the accessibility requirements for surface vehicles. Modern air-cargo facilities are designed to handle containers, and the scale of building facilities varies depending on the volume of cargo handled. In countries with cheap labour and low freight throughput, freight-handling systems may still rely on manual labour. In contrast, developed countries with higher labour costs utilize mechanical equipment such as stackers, tugs, and forklift trucks.

Additionally, the type of cargo operation affects surface vehicle accessibility. Small-package cargo terminals, for instance, are designed separately from conventional air-cargo terminals, with all packages cleared overnight. These specialized operations require efficient surface vehicle access to facilitate timely deliveries.

Overall, the accessibility of cargo airports for surface vehicles is a critical factor in their location and design. It involves considering the surrounding infrastructure, the nature of cargo handling, and the specific requirements of different cargo operations to ensure efficient transportation connections.

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