Dallas Fort Worth International Airport: The Premier Gateway for Latin America-Asia Trade
10.19.2016
Agenda
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• DFW Cargo/Logistics Growth Strategy
• Where we are at and what comes next
• DFW Freighter Recruitment Strategy:
• Connecting South America and Mexico
• Commercial Development Land Plan- John Brookby
DFW’s air cargo growth strategy was developed in alignment with the way that freight is transported
Shipper Recipient
Trucking
Company
Ground
Handler Airline Ground
Handler
Trucking
Company
Freight forwarder: brokers transportation on
behalf of shipper or recipient, using the
assets of various providers
Integrator: deals directly with shipper or
recipient, and operates the entire
transportation chain using its own assets
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Cargo activity 55.1%
Other airport activity 44.1%
Cargo and logistics matter to DFW and North Texas
Source: The Perryman Group, Catalyst!! The Role of Dallas/Fort Worth International Airport in the North Central Texas Regiona l Economy, September 2015
Annual DFW Airport Economic Impact (total economic impact = US$37 billion)
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DFW as a cargo gateway today
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Figures in Metric Tons
Growth Rate equals Compound Annual Growth Rate for 2007 - 2014
Source: Airports Council International–North America, traffic figures reported by member airports for the years noted.
Dallas Fort Worth 2014 Total: 634,997
2007-2014: (37,738)
CAGR: -.8%
San Francisco 2014 Total: 400,614
2007-2014: (86,240)
CAGR: -2.8%
Houston 2014 Total: 461,492
2007-2014: 50,104
CAGR: 1.7%
Atlanta 2014 Total: 601,249
2007-2014: (54,008)
CAGR: -1.2%
Chicago 2014 Total: 1,377,664
2007-2014: 52,845
CAGR: 0.6%
New York City 2014 Total: 1,943,819
2007-2014: (391,869)
CAGR: -2.6%
Los Angeles 2014 Total: 1,816,269
2007-2014: 185,188
CAGR: 1.6% Miami
2014 Total: 1,998,779
2007-2014: 192,009
CAGR: 1.5%
Key findings of the 2015 DFW Air Cargo Study
• Shift out-dated focus from adding lift/capacity (“supply”) to stimulating freight flows (“demand”)
• Marketing focus: forwarders, shippers and supply chain managers
• “Total landed cost,” or “TLC,” is the new language of DFW Cargo Business Development
• Airline capacity will follow shifting freight flows
• Growth opportunities
• Protect and grow Mexico/Asia air-truck gateway
• Leverage American’s expansion in Asia and South America
• Capture more Texas exports (DFW – 29%, IAH – 29%)
• Exploit latent demand for cold chain/perishables logistics services at DFW
• East Coast-West Coast air-truck-air transit freight that is carried past DFW
• Create a perishables gateway for South American transit freight to Asia
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2016 Progress
• 2016 DFW Perishables Facility Feasibility Study
• DFW is a viable competitor for perishables imports, exports, and transit freight
• Handling facilities and logistics services are lacking
• This infrastructure deficiency can be remedied by the end of 2017
• Increased South American freighter capacity is the key to growth for DFW
• TLC Triage Model
• DFW is the only airport in the world that uses this tool/analytical perspective
• Allows DFW Cargo Business Development to compare DFW’s viability as a gateway with great specificity
• by commodity type
• by flow (imports, exports, transit)
• by mode (air-air, air-truck, truck-air)
• by trade lane
• Permits DFW to focus resources
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Source: Forward Air Service Schedules, U.S. Census Bureau, LogCapStrat DFW Air Trade Portfolio Model
Strategic Initiative 1: Increase market share in DFW catchment area
Dallas Fort Worth (DFW) and Houston Bush (IAH) air cargo catchment areas
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Strategic Initiative 2: Protect and grow DFW’s position of strength in key Asian markets
Source: LogCapStrat DFW Air Trade Portfolio Model
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Strategic Initiative 3: Strengthen DFW’s position in the Mexico trans-border trade lane
10 Source: LogCapStrat Analysis
Illustration of the U.S. - Mexico supply chain and intermodal freight flows
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Strategic Initiative 4: Establish DFW as a viable transit gateway between Latin America and Asia
Source: LogCapStrat DFW Air Trade Portfolio Model
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DFW Opportunity: Grow the Latin America-Asia air freight market
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Source: LogCapStrat DFW Air Trade Portfolio Model
TLC triage model snapshot
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Source: LogCapStrat DFW Air Trade Portfolio Model
Inter-regional Transit Perishables Air Freight
Trade
Annual Air Freight
(Metric Tons)
Total Transportation Cost
(USD per Kilogram) by U.S. Gateway 2015 2021(f) CAGR DFW IAH LAX MIA ORD
Chile - China 3,773 8,863 18.6% $2.95 $3.90 $3.07 $4.48 $3.01
Chile - Taiwan 1,955 3,243 10.7% $2.89 $4.32 $3.45 $3.27 $3.45
Chile - Japan 1,268 1,589 4.6% $3.13 $4.11 $3.52 $3.24 $3.57
Chile - South Korea 783 1,296 10.6% $3.12 $4.36 $3.34 $3.42 $3.18
Brazil - China 447 1,028 18.1% $2.40 $2.59 $2.52 $4.15 $2.59
Brazil - Japan 289 420 7.7% $2.59 $2.80 $2.95 $2.91 $3.15
Brazil - Malaysia 850 394 -14.3% $3.12 $3.13 $3.30 $3.30 $3.28
Brazil - Vietnam 44 367 53.1% $2.73 $3.15 $3.19 $2.88 $4.02
Brazil - Indonesia 244 339 6.8% $2.58 $3.73 $3.39 $3.09 $3.31
Brazil - Singapore 269 319 3.5% $2.52 $3.30 $3.30 $3.25 $3.07
Chile - Thailand 220 266 3.9% $3.12 $4.27 $3.75 $3.82 $3.45
Brazil - Thailand 235 245 0.8% $2.58 $2.97 $3.19 $3.49 $3.03
Brazil - India 136 227 10.8% $3.06 $3.81 $4.83 $3.63 $3.75
Brazil - New Zealand 60 107 12.4% $4.30 $6.59 $5.81 $5.48 $5.71
Chile - Malaysia 40 101 20.5% $3.67 $4.45 $3.87 $3.63 $3.70
Brazil - South Korea 71 84 3.5% $2.56 $3.04 $2.77 $3.09 $2.76
Chile - Singapore 75 74 -0.3% $3.06 $4.62 $3.85 $3.58 $3.51
Chile - India 8 38 34.9% $3.61 $5.11 $5.39 $3.96 $4.17
Chile - Indonesia 37 23 -9.2% $3.13 $5.05 $3.94 $3.42 $3.75
Brazil - Taiwan 66 20 -21.0% $2.34 $3.01 $2.89 $2.94 $3.03
Chile - New Zealand 14 9 -9.5% $4.84 $7.90 $6.37 $5.81 $6.13
DFW advantage trade lanes 10,884 19,052 11.8%
DFW advantage share 32.8% 42.2%
Total export air freight 33,225 45,158 6.3%
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DFW is the lowest-cost U.S. transit gateway for freight from Chile and Brazil destined for Asia
Source: Logistics Capital Strategy, Market Demand Model
Lowest total landed cost
U.S. gateway airport
Cargo – Next steps
• Infrastructure
• DFW Air Cargo Committee will develop a cold chain/perishables facility plan to be implemented by the end of 2017
• Possible Airport investment in facilities
• Business development/ market outreach
• DFW-advantage trade lanes
• Exports: (1) California to Europe; (2) Mexico to Europe; and (3) Mexico to Asia
• Imports: (1) Mexico to U.S.; (2) Chile to U.S.; and (3) Brazil to U.S.
• Transit: (1) Chile to Asia; and (2) Brazil to Asia
• Identify decision-makers who control these trade lanes
• Shippers
• Freight forwarders
• Increase freighter capacity to/from South America and Mexico
• Achieve DFW’s strategic goal for cargo (2020)
• Grow Asia-Latin America cargo flows via DFW at a 50% faster rate than our competition
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How do we begin to reach these decision-makers?
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Forwarders Shippers/Growers Airlines
Dallas Fort Worth International Airport: The Premier Gateway for Latin America-Asia Trade
10.19.2016
Dallas Fort Worth International Airport Commercial Development Overview
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10.19.16
John Brookby Assistant Vice President Commercial Development
Development Types
• Cargo
• Warehouse
• Distribution
• Office
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DFW’s land use plan provides a framework and
development strategy for the commercial uses of
Airport property.
• The land use plan is updated every 5 years and
refreshed as needed
• This market–based plan was developed in a
collaborative process with input from owner & host
cities, DFW stakeholders, external stakeholders,
and the Airlines
DFW Land Use Plan
• Mixed Use
• Retail
• Hospitality
• Industrial
Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
North Destination
District
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• Over 2,100 acres developed
• Over 21,000,000 SF of buildings
• Built at 3rd party expense
Commercial Development Overview
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Airport Connected Development
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INTERNATIONAL
COMMERCE PARK
COPPELL INDUSTRIAL
SOUTHGATE PLAZA
HOSPITALITY/REC
NORTHWEST LOGISTICS
FOUNDER’S PLAZA
CENTER
WALNUT HILL
INDUSTRIAL
INTERSTATE 635 &
ROYAL LANE
Development Districts
WEST GRAPEVINE
INDUSTRIAL
BELTLINE STATION
NORTH DESTINATION
DISTRICT
AMERICAN AIRLINES CAMPUS
BEAR CREEK BUSINESS PARK
PASSPORT BUSINESS
PARK
WEST/NORTHEAST AIR
CARGO
Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
North Destination
District
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
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5
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2
8
1
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4
10
13
7
3
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2
3
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Bear Creek and Passport Park Business Parks Site Plans
Commercial Development Website: www.dfwairport.com/landhere Translated into 80 Languages
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Thank You
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10.19.16
John Brookby Assistant Vice President Commercial Development
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International Commerce Park International Commerce
• Approximately 363 net acres
• $5.3 million in annual ground rent
• 19 buildings totaling 5,731,200 sq/ft
• $329 million in tenant investments
• Approximately 3,880 jobs
Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
North Destination
District
27
Coppell Industrial Coppell Industrial
• Approximately 160 net acres
• Completely leased as of
January 2015
• 3 buildings providing
approximately 2.8 million sq/ft
• Annual revenue $2.3 million
Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
North Destination
District
28
Southgate Plaza Southgate Plaza
• 32 acre mixed-use
development
• PFIC owned 137 room Hyatt
Place
• Home to 154,000 sq/ft DFW
Headquarters building
• Planned 6,000 sq/ft United
States Postal Service facility
Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
North Destination
District
29
Hospitality and Recreation Hospitality
• Hyatt Regency and Bear Creek
Golf Course - $3.6 million annual
revenue to DFW
• PFIC owned - 298 Room Grand
Hyatt
• PFIC owned 137 Room Hyatt
Place
Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
North Destination
District
30
Northwest Logistics Northwest Logistics
• Approximately 200 acres
• 15 acres of freeway
commercial
• Approximately 1.6 million
sq/ft of facilities currently
in place
Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
North Destination
District
31
Founder’s Plaza Center Founder’s Plaza Center
• Approximately 60 acres adjacent
to the Founders’ Plaza
Observation Area
• North America's largest Infiniti
Car Dealership
Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
North Destination
District
32
Walnut Hill Industrial Walnut Hill Industrial
• Approximately 250 gross acres
for development
• Access to SH161, SH183 and
IH 121/114
• 440,764 sq/ft Dallas Airmotive
Facility currently under
construction
Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
North Destination
District
33
Interstate 635 and Royal Lane Interstate 635 and Royal Lane
• Approximately 45 acre site
• The 12 acres on the north side of
Interstate Highway 635 envisioned
for hotel and restaurant/retail
growth
• 33 acres on the south side of
Interstate Highway 635 are
projected for retail/restaurant and
flex-office development
Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
North Destination
District
34
West Grapevine Industrial West Grapevine Industrial
• No tax sharing
agreement in place
for this Development
District
Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
North Destination
District
35
Beltline Station Beltline Station
• Approximately 100 acre
site
• Beltline Station opened in
2012 with access to
DART’s Orange Line
Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
North Destination
District
North Destination District
36
• No tax sharing agreement in
place for this Development
District
• Approximately 936 gross acres
Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
North Destination
District
37
American Airlines Campus American Airlines Campus
• Approximately 268 acres
• AA Campus will house
approximately 5,000
employees
• Maintains AA’s
Headquarters in Fort Worth Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
North Destination
District
38
Bear Creek Business Park Bear Creek Business Park
• Approx. 1,700 gross acres
• Phase I – 321 net acres
• Office - 27 acres
• Hotel/Retail – 37 acres
• Office/Flex - 257
Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
North Destination
District
39
Passport Business Park Passport Business Park
• Approximately 600 acres
• Dalfen Americas facilities in
the lease pipeline (approx.
125 acres)
• Dalfen Americas proposing
approximately 1.9 million
sq/ft of warehouse facilities
Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
North Destination
District
40
West/Northeast Air Cargo West/Northeast Air Cargo
• Approximately 387 acres
• West Air Cargo – 303 acres
• East Air Cargo – 84 acres
• Approximately 4.1 million sq/ft of
facilities
• West Air Cargo – 3.2 million sq/ft
• East Air Cargo – 900,000 sq/ft
Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
North Destination
District
41
NW Cargo Redevelopment NW Cargo Redevelopment Opportunity
Bear Creek Business Park
Passport Park Business Park
American Airlines Campus
Bear Creek Golf Course Walnut Hill Industrial
West Air
Cargo
West Grapevine
Industrial
NE Air
Cargo
Northwest
Logistics
Founder’s Plaza
International Commerce Park
635 and Royal Lane
Coppell Industrial
Southgate Plaza
Beltline Station
North Destination
District