Picture credit: Salt Lake City International Airport
Trucking services in the state of Utah are well developed but air and rail freight services less so.
Air cargo often travels out of the state to reach the world, travelling to airports such as Denver, Los Angeles, San Francisco and even as far away as Miami.
The state’s main airport, Salt Lake City International Airport has plenty of belly capacity as it is a hub for Delta Air Lines while freighter services are limited to the express carriers.
Utah Inland Port Authority would like to see freighter services at Salt Lake City airport and is willing to provide incentives to make it happen.
Ben Hart, Executive Director of Utah Inland Port Authority attended the TIACA Air Cargo Forum, held at the Miami Beach Convention Center and took advantage of the Spotlight Stage to tell delegates about the potential of Salt Lake City and what the port authority was willing to offer companies who would invest in expanding cargo services.
Speaking to Air Logistics International, our air cargo magazine at Air Cargo Forum, Hart expressed his surprise that many US states were still not taking air cargo seriously, even after the disruption caused by the pandemic and port issues, most recently on the east coast.
The lack of interest leads Hart to believe that many states take air cargo for granted.
He said, “In the state of Utah, we’re very concerned about our logistics system. We are a very road dependent state and would like to change that so we invest billions of dollars a year into our road and transportation system yet we don’t make significant investments in rail or air cargo.”
To resolve this, Utah Inland Port Authority has partnered with Salt Lake City International Airport to make Utah a top gateway for air cargo in the USA.
Users of Los Angeles and other west coast gateways are looking for alternatives so the port authority and airport are talking to partners and raising awareness to improve cargo flows in Utah.
Hart says 92% of air cargo is trucked out of the state to other airports who have more facilities and widebody flights so the port authority and airport are looking at investing in facilities, including temperature-controlled warehouses and apron space.
For imports, e-commerce is the focus and key exports are pharmaceuticals, advanced manufacturing and aerospace manufacturing because these support high wage jobs in the state.
Salt Lake City is an oversized airport for a state the size of Utah, according to Hart, with good links to Europe and elsewhere in the Americas.
The first Asian flight will start next year with connections to Seoul’s Incheon International Airport. Asia is a critical market for Utah’s imports and exports so is a shipping lane that needs development.
Business opportunities
There are several areas around the airport that can be developed and third-party cargo handlers are encouraged to submit proposals through an open RFP, which is running until February next year.
Hart says, “Having something that is third-party and open and allows everyone to benefit from is a critical piece we are missing right now. We want to help offset costs and make investments where needed to attract the right cargo handler because if we get a good partner, that is going to help everybody.”
The state is willing to make large investments in the project to make sure it is economical for the right handler and there is potential for multiple cargo handlers as volumes grow.
The area for development is in an attractive location next to the airport’s runway.
The RFP opened in early October and the feedback has been good with strong interest.
Hart says it must be economical, which is where Utah Inland Port Authority can play its role with incentives, subsidies or contributions to facilities and infrastructure.
When picking a partner, they need a good track record and to charge local users a good price for services.
They need to work with the local marketplace to understand their needs and be a good fit for the community.
International freighter services are on the airport’s wish list and Hart believes having quality services provided by a third-party cargo handler will make Salt Lake City more attractive.
Salt Lake City is among the top 30 US airport for cargo volumes and the target is to make it into the top 10 with two to three million tons of cargo a year.
Hart admits the airport is a long way off that figure.
In the next 12 months, the state is supplying the airport with a top loader and other cargo handling equipment, along with millions of dollars of other investments and marketing the airport to help it grow in the short term.
Hart says, “Some of these facilities will have to be build out, which will take time, we understand that but we have a great partner in Salt Lake City International, which can help us through a lot of the issues so we hope to see significant investments in the next 12 months and significantly more volumes in the next two to three years.”
The project has high-level political support with the governor and legislator having appointees to the port’s board, and everyone at the airport is supportive.
Hart adds, “Utah is a very business-friendly state so it is not like other states where regulations can choke your business. We want to make businesses successful so political support from the city, local governments and right up to state governments is strong.”
The RFP is open for questions until 6 February 2025 and proposals need to be submitted by 14 February. The RFP can be obtained at: https://utah.bonfirehub.com/opportunities/164423
