Aviation Infrastructure Projects
Aviation Infrastructure Projects
CIA Activity
Academic year 2022-23
Course and Course Code (CE8102) Infrastructure Planning and
Economics
Class and Div. T.Y. B-Tech (A)
CIA Topic Mini project on Aviation Infrastructure
Projects
Name of faculty Prof. R. V. Kolhe
Roll No. Name of Student
23 Garud Rutuja Chandrakant
56 Gadade Abhishek Dnyanoba
59 Gaikwad Rohini Sunil
64 Shelke Prapti Vishwanath
69 Chavan Gautami Jitendra
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ACKNOWLEDGEMENT
The entire session of report completion phase so far was a great experience providing me
with great insight and innovation into learning various technical concepts and achievement of it.
As is rightly said, for the successful completion of any work, people are the most important asset
my seminar would not be materialized without the cooperation of many of the people involved.
First and foremost, we are very much thankful to our respected guide Prof. R. V. Kolhe for their
leading guidance and sincere efforts in finalizing this topic. They took deep interest in correcting
the minor mistakes and guided us through our journey so far. Also, they have been persistent source
of inspiration for me.
We are also very thankful of Dr. C. L. Jejurkar, Head of Dept. of Civil Engineering for the
symmetric guidance and providing necessary facilities and express deep gratitude to all the faculty
members and our department’s technical Staff for providing our needed help.
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ABSTRACT
Airport infrastructure is part of the basic underlying foundation of an airport system. The existence
of airport infrastructure, and associated ground infrastructure, is an essential factor in regional
development. It has been demonstrated that the presence of this infrastructure has a direct
relationship on the overall economic functioning of the surrounding area. Historically, industrial
and commercial firms have tended to locate in clusters near transportation hubs. With the
agglomeration of such firms, economic growth is generated. The role of transport infrastructure in
regional development is discussed in this paper through the examination of three case studies of
airports that have been successful in effecting regional economic development. The primary case
studies are Fort Worth Alliance Airport in Fort Worth, Texas; Dallas-Fort Worth International
Airport in Texas; and Huntsville International Airport in Alabama. Some conclusions are drawn
on airport infrastructure and the role it can play in regional economic development. Some policy
recommendations are made as to how the knowledge gained from this study can be applied to an
airport business park near Winnipeg International Airport.
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TABLE OF CONTENTS
Chapter No. Title Page No.
Table of contents 4
List of figures 5
1. Introduction 6
2. Infrastructure 10
4. Case-studies 14
5. Conclusion 21
References 22
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LIST OF FIGURES
Figure No. Title Page No.
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CHAPTER 1
INTRODUCTION
Traditionally, industry tends to locate in areas that are transportation centres, or hubs. This
tendency has been the “primary cause for the rapid growth of cities” (FAA 1965). Past studies
relating transportation centres and regional economic development have usually focused on
seaports, and the ability of the port to stimulate the economy in its hinterland. The focal point of
this study, however, is airports, the new “centres of global commerce” (Infrastructure Technology
Institute 1999).
Air transportation impacts economic, environmental, cultural and social ways of life worldwide.
More people and more companies depend on air transportation than ever before. How significant
is the role played by airports in regional economic development? If a city is equipped with an
efficient airport, including extensive passenger and cargo links, how much of a comparative
advantage does that provide?
Cities and airports can try to attract economic development through airport business parks. Usually
located adjacent to an airport, these parks are attractive to those firms that make frequent use of
air transportation, whether passenger or cargo. For instance, executives for companies frequently
make multiple business trips per month. For these firms, having an office close to the airport allows
for a partial workday before or after a flight. Firms that move goods by air, usually goods with a
high value-weight ratio or perishable goods, can reduce total transportation costs by locating near
an airport. Business Park features such as foreign trade zone (FTZ) status make airport locations
even more attractive.
As more firms are attracted to a particular airport business park, the service level rises to meet their
demands, thus making the location even more desirable to other firms. At this point, the airport
business park is said to have reached its critical mass, whereby it enters a stage of self-sustaining
growth. The advantages to the firms are not limited to the passenger and cargo air service. In
addition, firms are subject to the positive influences associated with agglomeration economies,
including combinations of localization economies, urbanization economies and industrial-complex
economies.
In Winnipeg over the past ten years, there have been several discussions and proposals to create
an airport-related business park on lands to the north and west of Winnipeg International Airport
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(YWG).2 Winn port, a consortium of local businesspeople who created an all-cargo airline serving
Winnipeg and two cities in China, Shenzhen, and Nanjing, made some significant progress. Winn
port began flying between Canada and China in the autumn of 1998, but suspended operations in
January 1999 and has not resumed as of December 1999.
Winnport was undercapitalized when it began its operations, and was cursed with unfortunate
timing. Just as the airline began serving China, the “Asian flu” hit, negatively impacting nearly
every economy in Eastern Asia. Winnport, being solely focused on Winnipeg-China routes with
no diversification, had no other revenue-generating traffic, and thus suspended operations under
mounting losses. Winnport’s initial difficulties should not necessarily be taken as a sign that a
major air cargo operation is not viable in Winnipeg. Rather, it should be a lesson from which future
endeavours can learn. Winnport may resume operations in 2000.
This paper is intended to identify some feasible steps required to develop an airport business park
in Winnipeg, without having “all the eggs in one basket,” as was the case with Winnport initially.
The prime purpose of an airport business park is to promote economic development through the
provision of infrastructure. This paper considers how that may be possible in Winnipeg. This paper
explores three airports in the United States that have been successful in attracting development, to
the benefit of their respective regions. In addition, this study further examines Winnipeg’s airport,
which may have the potential to undergo similar development. The successful US airports
examined in this study are:
1. Fort Worth Alliance Airport in Texas (AFW);
2. Dallas-Fort Worth International Airport in Texas (DFW); and
3. Huntsville International Airport in Alabama (HSV).
Each of the airports in this study differs from the others. AFW is part of a small classification of
airports with no passenger traffic and a dedicated focus on air cargo and nearby industrial
development. DFW is a major international passenger hub, with tens of millions of passengers
annually. HSV is a smaller passenger hub, with a proportionally larger focus on air cargo. The
focus at YWG is on passenger traffic, but with increasing attention being given to cargo activity.
Table 1 summarizes the classification of the airports in this study. Initially, the paper outlines
exactly what is infrastructure, with specific reference to airport infrastructure. Next the role of
infrastructure in development is examined, followed by an in-depth look at the case-study airports.
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In determining some of the key attributes of the successful US airports, a set of recommendations
is made for Winnipeg.
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CHAPTER 2
INFRASTRUCTURE
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lighting,
navigational aids,
boarding devices,
communications systems,
security systems,
parking lots,
graphics,
signage,
landscaping,
drainage,
water supply,
and sewer disposal.
For the purposes of this paper, of prime concern are the actual airfield facilities and the access
facilities. The airfield facilities include runways, aprons, taxiways and main buildings, such as the
passenger terminal and cargo buildings. The access facilities are primarily the roadways (and rail
lines, where applicable) that lead into the airport terminal and cargo areas. These two components
of airport infrastructure are most important in terms of regional economic development. To a lesser
extent, this paper also considers municipal infrastructure, such as water and sewer service.
Perhaps the best way to address infrastructure and development is to attempt to answer some key
questions.
Why is infrastructure indispensable to development?
Could development possibly occur without infrastructure?
Is transport infrastructure vital to economic functioning?
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CHAPTER 3
INFRASTRUCTURE AND DEVELOPMENT
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The negative effect can manifest itself in several ways. A prime example is the case of misdirected
investment, whereby resources allocated to transport may be more useful in promoting
development in other areas. This is also true if a region is already well-served by transport
infrastructure; further investment could be wasteful (Rietveld et al 1993). The protectionist
viewpoint suggests that high transport costs arising from current infrastructure protect a region
from lower-cost competition from outside the region. Finally, the best planning intentions can
backfire, in which improved transport infrastructure could benefit urban centres at the expense of
outlying development centres (Gauthier 1970; Miyoshi 1997).
The next section attempts to decipher the impact an airport has on economic development in its
region, and to determine how the airport affects its region geographically.
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CHAPTER 4
CASE-STUDIES
The airports included as case studies are among North America’s most successful at effecting
regional economic development. After examining the three U.S. cases, this study revisits YWG
and suggests how it might benefit from a similar style of planning.
Figure 1: Fort Worth Alliance Airport. (Source; North Central Texas Council of Governments,
1999)
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residential development, spread out over approximately 4000 hectares (9400 acres), although not
all the land is developed.
Between US$4 and 5 billion have been invested at Alliance, over 20,000 jobs have been created
(including construction jobs), and about US$10 million in taxation is generated annually for the
cities, counties, the school district and the state.
Just over a decade ago, the area that is now Alliance was farmland. In fact, there are still cattle
roaming the open areas on the airport site. As of now, there are 19 ‘Fortune 500’ companies at
Alliance, and over 70 companies in total. The record of development at AFW is unmatched
anywhere in North America.
As for the existent infrastructure, the roadways are very wide, designed to handle high volumes of
very large trucks, consistent with the concentration of distribution centres. The single runway is
3,000 m (9,840 feet) in length with FAA approval to be extended to 4,000 m (13,120 feet), which
would accommodate the largest aircraft in regular use today.
Alliance features direct access to I-35W, which leads north through the Mid-Continent
International Trade Corridor to Canada, and south to Mexico. Often referred to as the NAFTA
Superhighway, I-35 is the shortest existing route connecting all three nations.
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Another major tenant is Burlington Northern Santa Fe Railroad (BNSF), which operates one of
North America’s largest and most technologically advanced intermodal facilities at AFW. Not
only does this company add to the Alliance portfolio, but the facility is also one of the strongest
drawing forces. Alliance officials have claimed that the BNSF facility has been “as important” as
the airport in terms of attracting tenants.
The entire Alliance area is a Foreign Trade Zone (FTZ), making it especially appealing to firms
involved in international commerce. FTZ status enables firms to save on duties and taxes on
inventory that is in-transit and on parts used in the manufacturing or assembly of other good.
Just north of Alliance is Texas Motor Speedway (TMS). Developers credited the success and
drawing power of Alliance for influencing their locational decision. TMS is another economic
spin-off benefit from the geographical proximity to the airport, sparking more agglomeration
benefits. TMS hosts several events each year, the most popular being NASCAR and Indy Racing
League events, which can fill the 200,000-seat facility. With events so large, the added economic
impact on the region is enormous.
More recently, several residential developments are in the planning or construction phases,
designed to house the growing work-force at Alliance.
However important Alliance is to the region, it likely will always be less than the region’s main
airport: Dallas-Fort Worth International, only 15 miles away.
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as well as Mississippi and Alabama, which were added more recently. Apart from Southwest,
Continental Airlines and American Airlines also have limited service at Love Field.
It is estimated that the annual economic impact of DFW is approximately US$11 billion. This
includes over 200,000 jobs and US$6.1 billion in labour income (Dallas-Fort Worth International
Airport 1999).
There is an incredible amount of infrastructure surrounding DFW airport. In total, DFW covers
about 7000 hectares (17,000 acres), an area larger than the island of Manhattan. The most obvious
infrastructure components are the four terminals and seven runways, with expansion plans for two
more terminals and another runway. In terms of ground infrastructure, major freeways surround
the airport with direct links to the central urban areas of Dallas, Fort Worth and most of the smaller
cities that make up the metropolitan area. One freeway, International Parkway, runs through the
middle of the airport with aircraft taxiways crossing overhead. Finally in terms of infrastructure,
six major rail lines serve the airport area.
The cargo areas at DFW are to the north. United Parcel Service (UPS) operates a regional hub in
the northwest corner of the airport and most other major cargo companies have substantial
operations in the northwest and northeast areas of Figure 2. FedEx, despite its regional sorting hub
at AFW, also maintains some operations at DFW to take advantage of the international routes
which are available. DFW was the 21st-ranked airport in the world in terms of annual cargo
volumes in 1998, with just over 800,000 metric tonnes (Airports Council International 1999).
DFW officials claim that the airport has been a factor in the relocation or expansion of over 400
firms (Dallas-Fort Worth International Airport 1999). This study is part of a larger study aimed at
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determining exactly how important DFW and the other case-study airports are in terms of industrial
location, including the relatively large impact of the airport in the smaller city of Huntsville,
Alabama.
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Interstate-565. The cargo area is to the east, between the airport and the Jet Plex Industrial Park.
The most important cargo carrier at Huntsville is Cargo Lux, which currently flies nine 747
freighters per week between Luxembourg, Huntsville, and Mexico. Warehouse space at Huntsville
is in the process of doubling its capacity. The air cargo centre is adjacent to the International
Intermodal Centre, which is a rail container facility served by the Norfolk Southern. To the east is
the Jet Plex Industrial Park, home to some major companies, including Chrysler and the Air
Défense and Space Divisions of Boeing. Other electronics and aerospace firms are also in the area,
including Futaba, TDK, Raytheon, and Goldstar. The concentration of firms can be clearly noted
by the numbers – each representing a tenant firm in the business park – in Figure 3.
The Airport Authority operates the airport, the intermodal centre, and the industrial park. Together,
their impact on regional economic development can be difficult to separate from the federal
government’s impact. Many firms that locate near the airport are government contractors, either
for the US Army or for NASA.
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There are hundreds of hectares of land available for immediate development west of YWG, but
very little has even the most basic of services. Upgraded truck routes are also a necessity for any
substantial distribution activity. Currently, distribution activity from YWG’s hinterland to the
south and east of the airport must travel along one of the city’s most congested arteries (Route 90)
to get to the main highway to the United States.
The airfield is adequate, as it is currently underutilized. There are three runways (one of which is
for light aircraft only) and sufficient taxiways. Apron space, particularly for cargo, is at its
capacity, especially during peak overnight hours. If a business park were to be developed with
increased utilization of the airport for cargo, as has happened at AFW, DFW and HSV, new cargo
aprons and buildings would be required.
A recent Economic Impact Study pegged YWG’s impact at 7220 jobs creating C$220 million in
labour income, and C$300 million in expenditures (Shurvell et al 1998).7 This is clearly a
significant impact on the community of Winnipeg. However, with some careful planning, strategic
investment of public and private money, and a commitment from some major firms, the impact
could be much greater.
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CHAPTER 5
CONCLUSION
There are a number of key features that each of the successful US case-study airports possess,
which have undoubtedly contributed to the positive economic development they have had on the
surrounding regions.
1. They are fully multimodal facilities. They incorporate air, road and rail infrastructure, and
Huntsville is contemplating a port on the Tennessee River.
2. Much of the development surrounding the airports has taken advantage of tax incentives and
abatements. For example, a major tenant at Alliance Airport, the American Airlines maintenance
base, may have located in Tulsa, had not the various levels of government agreed to a fifteen-year
abatement of taxes.
3. Each airport and each business park is designated as a Foreign Trade Zone. This means that
firms do not have to pay duty or taxes on components that are imported into the United States and
subsequently re-exported, saving companies millions of dollars annually.
4. Not all firms that locate near airports are dependent on-air operations. Other possible reasons
may include incentives, proximity to customers or suppliers, and the agglomeration advantages
associated with shared infrastructure.
5. The development has followed the provision of infrastructure. In all cases, the initial outlay of
capital created excess capacity, but resulted in a powerful ability to attract firms and effect
economic development.
In addition, as development occurs at an airport, other firms note the success of those firms locating
near the airport and recognize that similar advantages and benefits could accrue to their own firm
from an airport location. Soon, as has been the case at each of the three U.S. airports in this study,
a critical mass is reached. At this point, the airport business park can undergo selfsustained growth.
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REFERENCES
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