Tristan Atkins Rob Hodgman Director of Aviation Aviation Senior Planner

1. Freight Mobility Strategic Investment Board WSDOT Aviation Division: Air Cargo Overview “Aviation’s role in the Freight Mobility Plan ” Lynn PetersonCam GilmourKaty Taylor Secretary Deputy Secretary Chief-of-Staff Tristan Atkins Rob Hodgman Director of Aviation Aviation Senior Planner WSDOT Aviation Division June 17, 2013

2. Presentation Agenda • WSDOT Aviation Overview • Aviation Economic Impact Study Overview • Aviation Economic Impact Study— Air Cargo • Aviation System Plan Overview • Aviation Air Cargo • Aviation System Plan (Future)— Air Cargo • Freight Mobility Plan & Air Cargo Component • Questions

3. WSDOT Aviation • Motto • Mission Statement • To enhance Washington state’s aviation system interests in ways that strengthens our transportation system, economy and quality of life. • Vision • To be a leader in aviation system planning and innovation. 4% 95%

4. Who we are and what we do WSDOT is charged with advancing the state’s aviation interest in seven crucial areas: ▪ capacity ▪ environment ▪ safety ▪ stewardship ▪ economic vitality ▪ mobility ▪ land use & preservation Major Programs ► Airport investments (grants & capital improvements) ► Aviation system and land-use planning ► Aircraft registration ► WSDOT-managed airports ► Aviation emergency management services http://www.wsdot.wa.gov/aviation/ 4% 95%

5. Aviation Economic Impact Study http://www.wsdot.wa.gov/aviation/WAEconomicStudy.htm

6. Approach: Three Perspectives • Economic impacts are significant and concentrated at four large airports. • Significant share of activity on through-the-fence connections (aircraft manufacturing). • 97% of state Gross Business Income (GBI) within 10 miles of an airport. • Some industries concentrated near airports, some less so, but many depend on aviation for critical business factors (markets, inputs, labor). • Immense value derived from other aviation services not captured by traditional impact analysis. • User value important for smaller communities where airports provide a valuable link to services, commerce, and the broader aviation network.

7. Airports contribute to jobs & economy Total impact attributed to aviation-related activities in Washington State— ▪ 248,500 jobs ▪ $15.3 billion in labor income ▪ $50.9 billion in economic output Wages WA Airports Keep Economy

8. Airports contribute to tax revenue ▪ Fiscal Impact Analysis • Public-use airports generated about $792 million in tax revenue in 2009. • $548 million supports the state’s General Fund. • Nearly $244 million is split fairly evenly amongst cities, counties, and special purpose districts. 4% 95%

9. Airports contribute to communities Enables Services that: ■ Save Lives ■ Protect Property ■ Promote Business Activities ■ Support Recreation & Tourism 4% 95%

10. Aviation Economic Impact Study – Air Cargo Air Cargo Included in the Base Report ▪ Airport Perspective - Air Cargo and freight drives down the cost of goods and services ▪ Industry Perspective - 90% of the state’s cherry crop was air freighted overseas - Air Cargo services are important for the delivery of fresh produce and other agricultural and animal products - Businesses with time-sensitive schedules rely heavily on air cargo ▪ User Perspective - Air Cargo included as an “User Derived” benefit - Users paid at least $6B for air freight and mail in WA in 2010

11. Aviation Economic Impact Study – Air Cargo Individual Airport Profiles & Air Cargo

12. Aviation Economic Impact Study – Air Cargo Air Cargo Activity in Washington At a Glance: ▪ 11 airports reported air cargo activity in 2010 ▪ Airport Classifications: -9 Commercial Service -2 Regional Service ▪ Sea-Tac, Boeing Field, and Spokane account for 98% of the state’s air cargo activity Cargo Volumes CY 2009 (Metric Tons): ▪ Sea-Tac = 728,794 ▪ Boeing Field = 405,817 ▪ Spokane = 198,417

13. Aviation Economic Impact Study – Air Cargo • How do Users of Air Cargo Benefit? • ▪ Improves the speed and reliability of shipments • ▪ Billions of dollars in annual value to air cargo users • High-volume, low-value shipments: Personal packages • Low-volume, high-value shipments: Large manufacturing equipment • ▪ The study estimated that $6.7 billion are paid in shipping costs each year • in Washington • Alaska Air Cargo delivered the season’s first shipment of Copper River salmon to Seattle-Tacoma International Airport

14. Aviation System Plan Overview • Purpose: To ensure that the State’s system of public-use airports receives the care and funding that is required to effectively serve the needs of Washington residents, businesses and visitors, well into the future. • Nested with the Long-Term Air Transportation Study (LATS) conducted 2005 - 2009 • Updated every five years • Considers three major aviation functional areas: • Commercial Air service • General Aviation • Air Cargo

15. Aviation System Plan – Air Cargo Components Air Cargo Framework Air Freight Statistics 84% of Washington state air freight is domestic 6% air freight activity is to Asia and 8% to Europe • Air Cargo consists of Air Freight and Air Mail • In Washington state Air Freight comprises 90% of Air Cargo • Air Freight is further subdivided into standard freight and express freight (FedEx/UPS)

16. Aviation System Plan – Air Cargo Forecast • Air Cargo Growth Forecasts: • Domestic = 3.8% annually • Asia = 4.5% Annually • Europe = 2.1% Annually

17. Aviation System Plan – Air Cargo Capacity Capacity Dynamics: Air Cargo Capacity is dependant on the type of operations at airports • Air Cargo capacity is measured by aircraft parking availability and sorting facility size. • Aircraft parking apron availability is dependent on dwell time of the plane and other apron requirements. • Sorting facility size requirements are impacted by forwarder/expeditor efficiency. • At small airports that predominantly handle feeder operations, cargo is generally transferred directly from the aircraft to the local delivery vehicle with no sorting or local “processing” taking place.

18. Aviation System Plan – Air Cargo Findings • Forecast Assessment: • Air cargo activity is principally concentrated in the major population and economic activity centers of the state. • Based on the forecast cargo volume, the concentration of air cargo activity is expected to remain relatively consistent. • Capacity Assessment: • No significant air cargo constraints currently exist. • Air cargo companies build facilities when they are needed. • Facility expansion occurs as demand grows. • Excess capacity seldom exists. • Availability of aircraft parking apron is often the key determinant of an airport’s ability to serve air cargo.

19. Aviation System Plan (Future) – Air Cargo • Key Components of a system plan that relate to Air Cargo: • Inventory • Activity Forecasts • System Requirements • Inter-modal integration • Air Cargo goals of the upcoming system plan: • Provide more in-depth analysis of Air Cargo operations at selected airports • Examine smaller airport operations and develop tailored forecasts • Determine airside and landside requirements at selected smaller airports • Explore modal connections and identify opportunities for freight ingress/egress improvements • Refine performance measures to increase focus on Air Cargo operations

20. Freight Mobility Plan & Air Cargo Component • Provide input to the Freight Mobility Plan: • Policy recommendations • Inventory of assets • Recommendations on performance measures • Support for forecast development • Collaboration in trend identification • Input on system strengths and challenges • Assist with the development of improvement strategies • Support of the resulting implementation plan

21. Questions and Contacts WSDOT Aviation Division 18204 59th Drive NE, Suite BArlington, WA 98223(360) 651-6300 http://www.wsdot.wa.gov/aviation/