A lot is happening at Edmonton international Airport (YEG) in the fourth quarter this year,” says the airport’s IAP director, air service development, Norm Richard. Amongst the ‘happenings’ at the airport is the fact it will mark five consecutive years of cargo growth which totals up to about 24 per cent average growth over that period of time. Needless to say Richard and his colleagues are “very pleased with that” and certainly it helps fuel continued investment in infrastructure at the airport.
In terms of Canadian airports we’re probably fourth or fifth place coming in on the 50,000 tonnes per year mark and on a global scale of course, the airport is under no delusions as to its diminutive stature. “So we don’t consider ourselves in that league, but we do consider ourselves a growing force to be reckoned with in Western Canada.”
There are significant opportunities for further growth notes Richard, not least of all because “we have a significant leakage problem from our catchment area,” where he estimates that as much as 70 per cent is going by truck into the US – Chicago, Huntsville, Houston, LAX, and even Miami. “South America is the fastest growing trade partner of Alberta,” he notes while acknowledging the issues at hand.
“Once supply is up in our marketplace we grow and there is legitimacy in our lack of lift in some key market areas.
So what we are doing is putting two new dedicated Code F (capable of handling B747-8F, B747-400F, MD- 11F, AN-124, IL-76 type freighters) cargo aprons in our Cargo Village, hydrant fueling, etc – basically first class operations.” The airport just acquired a Commander 60i cargo loader and eight accompanying dollies to support the operations of ground handlers on the airport property “because in addition to our regular type of service we have a significant heavy lift charter cargo activity programme and we’ve got the largest Antonov’s in the world coming in and the nose loading B747 coming in and that challenges our current operations,” he said.
“So we’ve been able to use that as a building block to get some awareness out there with the global brands coming in on a regular basis.” Much of this is being driven by the oil and gas industry.
“Edmonton itself is a manufacturing centre for the oil and gas sector, but also for all of Western Canada. About 44 per cent of the value of all the exports from western Canada come from the city of Edmonton itself,” Richard said.
This service manufacturing sector – the Nisku Business Park which was originally focused on the energy sector but has since diversified – is located right adjacent to the airport and as far the energy sector goes, the Nisku is the second largest park of its kind in North America behind Houston, according to Richard. “So again a significant amount of traffic and the reason some of the leakage is happening to Houston is that that is an unserved lane, so we are looking at that.
“So we are really stepping up on that now, saying this is where the product originates from or ends up being at. So if you want to have the most efficient air cargo supply chain then this is the airport to be using. And we are getting a lot of pickup on that, a lot of growth and we are seeing that in the numbers so we are reinvesting into the business to facilitate more growth.”
Like many of YEG’s contemporaries, Asian carriers are the holly grail. The opportunity to score on that front came tantalisingly close a couple of months ago when Cathay Pacific Cargo was looking to launch an Alberta route, but in the end it went to Edmonton’s long time rival city of Calgary, further south in the province. “But we respect that and we continue to dialogue with them to make sure we are a viable option for them,” Norm says adding that was key reason for being in Seoul recently for the Air Cargo Forum. “We are really looking to get the Edmonton brand out into the marketplace and into Asia,” he adds.
Back on home ground YEG has also recently finished building a warehousing and road carrier facility in the Cargo Village that will expand the airport’s road carrier reach from the Cargo Village itself from as far west as Vancouver and as far east as Winnipeg, Manitoba – basically within 24 hours of the airport.
“The other piece that is growing tremendously for us in terms of the market sectors is the agribusiness because of course Alberta is a major producer of beef and there is also a fair amount of swine activity going into Asia from Canada,” Richard says. The airport will be renovating a building the fourth quarter this year and expect to be opening a live animal shipping facility by the second quarter of 2015.
Another key advantage, Richard says, “that brings a lot of value to the equation in terms of Edmonton for air carriers, is that we sit on the third largest known oil reserves in the world and have three oil refineries within one hour of the airport, all producing Jet A fuel, so in terms of a sustainable product, competitive pricing is in place and geographically we’re well positioned on the Asia-Pacific.”
But as he notes, “it’s not a quick selling cycle. You have to be out there building relationships, but people are starting to pay attention because when you have five years of consecutive grow the specially in these difficult times we’re going through as an industry, that’s noticeable and when you see the world’s largest brands coming in out on charters, again that attracts attention.”