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John Terrell, Vice President John Brookby, Assistant Vice President Commercial Development Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership

DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

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Page 1: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

John Terrell, Vice President

John Brookby, Assistant Vice President Commercial Development

Dallas/Fort Worth International Airport

August 26, 2015

DFW Airport

Freight Forwarder Partnership

Page 2: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

2

Discussion Topics:

DFW Airport Overview

Commercial Development and Land Use

International Partnerships and Trade Alliances

Foreign Trade Zone

Cargo Development Strategy

Cargo Business Sectors and Opportunities

Freight Forwarder Engagement and Feedback

Page 3: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

DFW International Airport

• $31.6 billion economic impact

• Cargo activity accounting for $16.7 billion

• Unifier of the region

• 4th busiest in operations

• Only airport to land 4 aircraft

• 61 million passengers annually

• Home to the worlds largest airline

• 7 runways

Page 4: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

Major corporations mention DFW Airport among the top reasons

they chose to relocate their headquarters to the region

Fastest growing region in the U.S. and home to more than 20

Fortune 500 headquarters

Today, DFW has grown to be one of only seven airports in the

world with direct flights to more than 200 destinations – 148

domestic and 56 international

Major corporations mention DFW Airport among the top reasons

they chose to relocate their headquarters to the region

Fastest growing region in the U.S. and home to more than 20

Fortune 500 headquarters

Today, DFW has grown to be one of only seven airports in the

world with direct flights to more than 200 destinations – 148

domestic and 56 international

Major corporations mention DFW Airport among the top reasons

they chose to relocate their headquarters to the region

Fastest growing region in the U.S. and home to more than 20

Fortune 500 headquarters

Today, DFW has grown to be one of only seven airports in the

world with direct flights to more than 200 destinations – 148

domestic and 58 international

Page 5: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER Each new daily international route brings in about $200 million

dollars to the local economy – annually.

Page 6: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

International Service

DFW is recognized as the premier inland cargo hub, with international cargo

service to 17 major cargo hubs around the world.

Page 7: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

Approximately 6,000 acres of

developable land

More than 5,200 gross acres of

property will emerge into multiple

centers of development

Over 1,200 acres leased

Strategic location between Dallas and

Fort Worth and proximity to a network

of highways provide commercial

developers with numerous key

advantages

DFW Land Use Plan Supports goal to be more competitive in the global travel market by developing a

multifaceted center of commerce.

7

Page 8: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

Southgate Plaza Mixed-Use

Founders’ Plaza

Freeway Commercial – Coppell

Northwest Logistics Industrial

Southwest Cargo Logistics / Industrial

Redevelopment

Beltline TOD Mixed-Use

North Entertainment – Grapevine

Industrial Use – Coppell

East Air Cargo

Passport Park

West Grapevine

Bear Creek

Walnut Hill Industrial

8

Business Model Analysis Development Districts Map

Page 9: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

9

RUNWAYS

TAXIWAYS

AVIATION RELATED USES

CARGO DEVELOPMENT

AVIATION MAINTENANCE

FACILITIES 12,000 acres

maintained for

core business

operations

DFW Land Use Plan Core Business Operations

Page 10: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

Industrial and Warehouse Developments

10

Global Logistics I & II

DFW Trade Center 6, 7, 8, 9

Logistics Center I & II Fresenius

Page 11: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

Freight Forwarding Facilities: Global Logistics I & II

Phase One: Under

construction

Total 263 K sq. ft.

5% Office

Phase Two

Total 327 K sq. ft.

10% office

11

Page 12: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

DFW Trade Center 6, 7, 8, 9

Trade 6

500K sq. ft.

32’ Clear

Height

28 acre site

Trade 7

297 K sq. ft.

32’ Clear

Height

18 acre site

Trade 9

202 K sq. ft.

30’ Clear

Height

18 acre site

12

Page 13: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

International Commerce Park

Developable Land Area 432 acres

DFW Investment $37M

Developer Improvement $300M

Jobs 3,219

Salaries $131M

Annual Revenue to

DFW Airport

Page 14: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

Expansion Benefits

Increase its taxable business personal property value between $25.5 million and $60

million

Increase Freeport inventory value between $225 million and $580 million

Additional $20.6 million payroll annually

Between 200 and 500 hotel room nights annually 14

Commercial Development Aviall, Inc. at International Commerce Park (ICP)

Grown its business exponentially:

Increasing sales from $506 million in 2001 to $3.22 billion in 2010

Facility expansion from 239,000 square feet to 564,000 square feet, with 630,800

square feet of additional space

Employees increased from 340 to 800, adding an additional 300 jobs

Largest independent provider of new aviation parts and related aftermarket services

Wholly owned subsidiary of The Boeing Company

Relocated to ICP in November 2001

245,000 square foot corporate headquarters and global distribution center

The move to ICP doubled the size of its previous space

Page 15: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

DFW Global Business Ventures

International Airport Partnerships

Foreign Trade Zone Program

International Trade Alliances

15

Page 16: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

International Airport Partnerships

Shanghai Airport Authority

(China) – Oct. 2008

Taoyuan International Airport

(Taiwan) – Dec. 2011

Seoul Incheon International Airport

(S. Korea) – Sep. 2012

Singapore Changi Airport Group

(Singapore) – Sep. 2013

Beijing Capital International Airport

(China) – Sep. 2014

Moroccan Airports Authority

(Morocco) – Oct. 2014

16

Page 17: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

International Trade Alliances Trade Alliance with Aeropuerto Internacional de Monterrey (OMA MTY)

Agreement signed on February 27, 2014

Purpose: To increase air cargo flow between the airports, around the world

OMA comprises thirteen airports, of which Monterrey is the largest

Strategic location – industrial heartland of Mexico

Creates opportunities for increased cargo traffic between Central and South

America and Asia through DFW

17

Capitalize on synergies resulting from air

and truck service between DFW and

Monterrey

Stimulate commercial development

opportunities by identifying new developers

and companies with cargo needs

Page 18: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

International Partnership: Foreign/Free Trade Zones

18

Dubai Free Trade Zone, United Arab Emirates

DFW Airport’s website updated with information on Dubai Free Trade

Zone and link to their website. Cooperative marketing programs.

Farglory Free Trade Zone, Taiwan

Memorandum of Understanding signed on December 5, 2011

establishing an airport alliance between DFW Airport and Taoyuan

International Airport, Taiwan.

Memorandum of Understanding between DFW and the Taiwan Farglory

Free Trade Zone signed on May 17, 2013.

Incheon International Airport, South Korea

Study on Tax Benefits of Incheon Free Trade Zone completed.

Page 19: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER U.S. Foreign Trade Zones Economic Benefits of FTZs

No duty on imports until they leave the FTZ for a domestic destination

No duty on items brought into FTZ and exported, as these items never enter Customs territory

Manufacturing FTZs can elect the lower of component part or finished product duty rate

No state and local personal property tax on imported inventory or domestic inventory held for export

Other logistical and process savings

INTERNATIONAL AIR CARGO CENTRE

PHASE I AND II

Page 20: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

20

DFW Airport’s Foreign Trade Zone

DFW sponsors FTZs in three ways:

On-Airport – Pre-designated FTZ

boundaries

Railhead, Fort Worth – Pre-

designated geographical FTZ area

Throughout Metro Area- Company

specific locations

Page 21: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

DFW Airport’s Foreign Trade Zone On-Airport FTZ

2,400 acres/971 hectares on-Airport

Pre-designated as FTZ

Companies can simply activate with

Customs

56 buildings, 12 million sq. ft. of

warehouse space is FTZ-designated

New industrial development underway

FTZ acreage can easily be moved to

accommodate companies

Page 22: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

22 22

DFW Airport’s Foreign Trade Zone On-Airport FTZ

Airbus Helicopters

Alliance Operating Services

CEVA International

Dallas Cowboys Merchandising, Ltd.

DHL Global Forwarding

Ergo Distribution, Inc.

Hitachi High Technologies America

Menzies Aviation

Mountain Plumbing Products

NEC Corporation of America

Network Logistics

Panalpina, Inc.

Valeo Compressor North America

Page 23: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

DFW Airport’s Foreign Trade Zone Free Trade Zone Alliances

23

Dubai Airport Freezone Authority (UAE) – Mar. 2012

Farglory Free Trade Zone (Taiwan) – May 2013

Page 24: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

• 21 air cargo buildings with just under 3M SF of space

• 29 aircraft parking positions (6 wide body vs 23 narrow body)

• 13 freight forwarding buildings (on airport) with 1,236,200 SF of space

• The facilities were built and are managed and controlled by third parties

• 650,000+ Metric tons / year

DFW Airport Cargo Facilities (Including Integrators)

24

Page 25: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

25

AA Cargo

Page 26: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

Comprehensive alignment of freighter facility development that is sequenced by demand triggers, phased for just-in-time delivery and needs no empty chair for construction.

• Accommodate 18 – 20 ramp positions for 747-800Fs or smaller (aligns operational excellence with carriers)

• Coterminous facilities proximate to logistics chain partners’ access routes (increases cost competitiveness)

• Redevelop the west-side where there is proximity to fueling infrastructure (limits cost impacts)

• CDS Study indicates 30-50,000 square foot of warehouse per aircraft parking position

• Industry proposals/discussions indicate 60-70,000 square foot of warehouse per aircraft parking position

Cargo Development Strategy (CDS)

26

Page 27: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

27

Page 28: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

28

95,910 SF

132,800 SF 96,800 SF

154,600 SF

380,000 SF

340,000 SF

115,600 SF

Page 29: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

Commercial Development Website: www.dfwairport.com/landhere

Translated into 80 Languages

29

Page 30: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

COMMERCIAL DEVELOPMENT – 2014 MASTER

Page 31: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

31

Page 32: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Our Vision:

Establish DFW as the Cross Roads of the Americas for relevant global air cargo trade lanes

32

Our Mission

Create the hemisphere’s best environment for the transport, handling and transit of air cargo

Our Primary Business Goal

Strengthen DFW’s global competitiveness and brand in the logistics industry, by creating an

Americas-best combination of operational efficiency, facilities, and customer service

Key Objectives FY15

• Complete the DFW cargo strategy by end of September 2015

• Identify any subsequent phases of the DFW cargo strategy (if needed) by the end of CY 2015

• Complete global trade lane outreach plan for FY 2016-2017 by the end of CY 2015

• Complete global freight forwarder outreach plan for FY 2016-2017 by the end of CY 2015

Key Results

Market the DFW

business model so

that All Trade Lanes

Lead to or through

DFW

Define and

Disseminate the DFW

Logistics Vision and

Brand

Conceive the Vision

of what DFW can

become

Cargo and Logistics Business Development Overview

Conceive and

Executive a new

business model to

match the vision and

brand

Page 33: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Freighter Services at DFW Provide Forwarders with Lift to Nearly

Every Region of the World

33

Scheduled International Freighter Services at DFW

May 2014

Page 34: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

DFW’s over-arching cargo and logistics goal is to stimulate

demand and supply growth simultaneously

3

4

CARGO DEMAND CARGO SUPPLY

Freight

forwarders

Shippers

Customers

brokers

Airlines and

handlers

Facilities

developers

Page 35: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

New business development opportunities at DFW

35

Freight Forwarders

Facilities

Developers /

Operators

Trade Lanes

Shippers

Customs Brokers

Commodity Types 3PLs

Page 36: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Key Growth Sectors Targeted by DFW

36

Texas Trade Growth: during each of the past two years, Texas has surpassed

California as the USA’s largest generator of international trade

2013: Texas generated 18.8% of U.S. global trade; California 15.3%

Mexico-Origin Cargo Growth: DFW has replaced LAX as the most efficient air

cargo gateway from the Central Mexico maquiladora region

Cross-border, in-bond FTL and LTL trucking services – 40% growth in past year

Perishables & Growth at DFW: Traffic of pharmaceuticals, fish, fruit,

flowers, etc. has more than doubled at DFW during the past year

Development of 5,000 sq. ft. of cool chain facilities on airport by SCL Cold

Chain, with plans to expand by another 13,000+ sq. ft. during 2015

AA’s rapid expansion of South America-to-Asia belly cargo connectivity

AA’s construction of a 1,800 sq. ft. cooler; plans for another 4,000 sq. ft.

Page 37: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Asia Accounts for 64% of DFW’s Total Trade with the World

37

Source: World City trade statistics, derived from U.S. Census Bureau data, for period noted, www.worldcityweb.com

$0.62

$0.74

$0.80

$0.88

$1.01

$1.20

$1.25

$1.65

$3.53

$9.11

$0.0 $1.0 $2.0 $3.0 $4.0 $5.0 $6.0 $7.0 $8.0 $9.0 $10.0

France

Thailand

Singapore

Germany

UK

Japan

Malaysia

Taiwan

South Korea

China

China Accounts for 35% of

DFW’s Global Trade

January - June 2014 DFW International Air Cargo Trade

Top 10 Trading Partners in $US Billions

Page 38: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Asia Accounts for More Than 75% of the Weight of DFW’s

Air Cargo Traded with the World

China 36.4%

Japan 9.8% Singapore

9.8%

South Korea 6.8%

UAE 5.2%

India 4.6%

Saudi Arabia 4.3%

Taiwan 3.9%

Malaysia 3.8%

Thailand 3.2%

Others 12.2%

38 Note: DFW Catchment Area includes DFW, HOU, ELP, LRD, STL, MCI, BPT

Source: U.S. Department of Commerce, Bureau of the Census

2013 DFW Air Cargo Traffic, by Weight

Top Global Trade Partners

Page 39: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Re-Shoring of Manufacturing to Mexico is being Driven by

Total Production Costs that are Lower Than Those in China

39 Source: Mexico Now, www.mexico-now.com , December 4, 2014

2013 Indexed Total Landed Cost of U.S. Imports

Page 40: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Approximately Half of Mexico’s Maquiladoras Manufacture

Products that are Typically Shipped by Air

40 Source: Jesus Canas, author: “Maquiladora Industry: Past, Present and Future”

Page 41: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

The Mexican States with the Largest Manufacturing

Presence Fall Within DFW ‘s Air Cargo Catchment Area

41

Source: Mexico Now, September-October 2014, pg. 116

Page 42: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

The Manufacturing Sector Attracted 73.5% of all Foreign

Direct Investment in Mexico During 2013

42 Source: Mexico Now, September-October 2014, pg. 120

Page 43: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Automotive Sector

43

Page 44: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

9 Automobile Companies Currently Manufacture Cars and/or

Parts in Nearly 20 Cities in 11 Mexican States

44 Source: Mexico Now, www.mexico-now.com , December 4, 2014

Page 45: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

10 Automobile Manufacturers have Announced US$9.7

Billion in New Maquila Plants Since 2012

45

Source: Mexico Now, www.mexico-now.com , December 4, 2014

Page 46: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Case Study: Japanese Automobile Companies are Ramping

up Production in Mexico

46 Source: Mexico Now, September-October 2014, pg. 118

Page 47: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Case Study: the Japanese Automotive Sector has

Diversified Manufacturing Presence Throughout Mexico

47

Page 48: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Aerospace Sector

48

Page 49: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Mexico’s Aerospace Manufacturing Output has More Than

Quadrupled During the Past 10 Years

49 Source: Mexico Now, September-October 2014, pg. 120

Page 50: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Mexico’s Aerospace Sector is Projected to Shift Toward

Activities that Will Likely Generate Growth in Air Cargo…

50 Source: Mexico Now, September-October 2014, pg. 26

Page 51: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

… and is Projected to Become More Globally-Diversified by

the Start of the Next Decade

51 Source: Mexico Now, September-October 2014, pg. 26

Page 52: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Pharmaceutical/Perishables Sector

52

Page 53: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Establishing DFW as a Viable Perishables Gateway is the Key to

DFW Seizing This Growth Opportunity

53

2013 Latin America-US Northbound Air Cargo Traffic Flows, by Commodity Type

Flowers 29%

Fish 25%

Fruits/ Vegetables 15%

Cereals 6%

Apparel 3%

Electrical Machinery 2% Other

20%

Source: U.S. Department of Commerce

MIA: 90.2%

LAX: 4.6%

JFK: 2.6%

Others: 2.5%

MIA: 57.5%

JFK: 17.3%

LAX: 11.3%

Others: 13.9%

MIA: 72.7%

JFK: 11.8%

LAX: 5.9%

Others: 9.6%

Page 54: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

“Back Haul” Belly and Freighter Capacity Can Create Growth

Opportunities for DFW

54

Source: U.S. Department of Commerce

2013 US-Asia and US-Latin America Air Cargo Traffic Flows

in Metric Tonnes

1.66M tonnes

1.22M tonnes

Result: 440K tonnes of “back haul”

capacity in U.S.-Asia mkt.; and

280K tonnes in U.S.-Latin America

mkt.

Page 55: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Perishable Air Cargo Traffic is Growing Rapidly in Mexico

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

2008 2009 2010 2011 2012

Valu

e (M

illio

ns U

S D

ollars

)

2008-2012 Perishable Exports: Mexico

South/CentralAmericas

Asia

Europe

Africa

Source: World Trade Organization

2008-2012 CAGR

Mexico - Asia: 11.0%

Mexico – South/Central

Americas: 11.1%

Mexico – Europe: 8.1%

55

Page 56: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Mexico’s US$13.5B Pharmaceuticals Industry (12th in the World)

Offers Growth and Diversification Opportunities…

56

Mexico Traded US$275M in

Pharmaceuticals with China during

2013

Page 57: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

John Terrell Vice President, Commercial Development

Dallas/Fort Worth International Airport

August 26, 2015

Conclusion

Page 58: DFW Airport Freight Forwarder Partnership · 8/26/2015  · Dallas/Fort Worth International Airport August 26, 2015 DFW Airport Freight Forwarder Partnership . COMMERCIAL DEVELOPMENT

Cargo-Freight Forwarder Initiative

Mission: Increase cargo traffic and related commercial development by

understanding the unique needs of the cargo community at DFW International

Airport.

Foster relationships through increased outreach

Research industry trends and our competitive advantages

Discover and present new opportunities

Plan for future cargo needs

Develop properties to increase efficiencies

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