Air Trade Logistics at Seattle-Tacoma International Airport – Air Cargo Briefing Tom Green Senior Manager, Air Cargo Seattle-Tacoma International Airport

Air Freight is Big Business Over $1 trillion is spent annually on domestic US transportation and logistics services Air freight accounts for 24% of the total US merchandise trade value $85 billion air freight & express market $35 billion US domestic market Freight traffic growing about 6% per year worldwide Market size doubles every ten years

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Air Cargo is Vital to Pacific Northwest Major economic benefits accrue from an efficient transportation logistics industry, boosting trade and increasing regional economic strength.

Trade-Dependent Industries Regional Logistics Sea-Tac Air Cargo

More than 160,000 jobs in Washington state are related to air cargo at Sea-Tac. Those jobs earned $8 billion in wages and salaries and contributed $737 million in state and local taxes. Total annual value of air freight exported from Sea-Tac is estimated at more than $15 billion. Source: Martin Associates, 2009

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Top PNW Air Export Commodities Electric Machinery, TV & Sound Equipment Aircraft & Spacecraft Parts Optic, Photo & Medical Instruments Machinery & Parts Fish & Shellfish Fruits & Vegetables Footwear Plastics Plants, Bulbs & Cut Flowers

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Positive Attributes: Location & Connectivity YVR

Seattle PDX

BOI ORD

SFO

JFK

DEN LAX

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Air Cargo Facilities at Sea-Tac

North Cargo Area South Cargo Area

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Air Cargo at Sea-Tac Origin and Destination Market Share

5th Largest on the West Coast Metric Tons 1,500,000

Europe 13.9%

Alaska 5.7%

1,000,000

500,000

Asia 21.9%

0

Rank

LAX

OAK

SFO

ONT

SEA

YVR

PDX

5

12

15

18

20

25

28

*based on 2010 tonnage

Hawaii 1.9%

Contiguous U.S. 56.6%

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Air Cargo Trends Total Air Cargo Tonnage & Freighter Landed Weight 400,000

1,600,000

1,500,000 300,000

Landed Weight, 1,000 lbs

Total Cargo Weight, Metric Tons

350,000

1,400,000 250,000 200,000

1,300,000

150,000 1,200,000 100,000 1,100,000 50,000

-

1,000,000 2004 Mail

2005 Domestic

2006 International

2007

2008

2009

2010

Total Freighter Landed Weight

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International Air Cargo Service 2011

Seoul Beijing

Seattle

Tokyo Osaka Taipei

2010 Asia Imports +25% Exports +27%

London Heathrow Paris

Amsterdam Luxembourg Frankfurt

2010 Europe Imports +18% Exports -13%

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2011 SEA-Asia Air Cargo Service Airline

Aircraft

Passenger Widebody or Freighter

Frequency

Destination

Hainan Airlines

332

A330-200

4/wk

Beijing

Delta Airlines

763

B767-300

daily

Beijing

Asiana Airlines

333

A330-300

daily

Seoul

Korean Air

772

B777-200

daily

Seoul

74Y

B747-400 freighter

daily

Seoul

China Airlines 1

74Y

B747-400 freighter

4/wk

Taipei

EVA Airways

744

B747-400

5/wk

Taipei

1

74Y

B747-400 freighter

2/wk

Taipei

Delta Airlines United Airlines

333 772

A330-300 B777-200

daily daily

Tokyo Tokyo

Delta Airlines

763/333 B767-300/A330-300

daily

Osaka

Korean Air

1

EVA Airways

Sources: Official Airline Guide (OAG), and schedules provided to the Port of Seattle by the airlines 1.

Frequency increases seasonally for cherry exports

2011 SEA European Air Cargo Service Airline

Aircraft

Passenger Widebody or Freighter Frequency Destination

Martinair Cargo

M1F

MD-11 freighter

1/wk

Amsterdam

Delta Airlines

333

A330-300

daily

Amsterdam

Delta Airlines

763

B767-300

daily

Amsterdam

Icelandair

75W

B757

6/wk

Reykjavik

British Airways

744

B747-400

daily

London

Cargolux

74Y

B747-400 freighter

3/wk

Luxembourg

Air France

332/343

A330-200/A340-300

daily

Paris

Lufthansa Condor

333 76W

A330-300 B767

daily 2/wk

Frankfurt Frankfurt

Sources: Official Airline Guide (OAG), and schedules provided to the Port of Seattle by the airlines

Air Cargo Market Share Fedex (FX)

130,325

Alaska Airlines (AS)

25,354

Delta Air Lines (DL)

20,729

China Airlines (CI)

12,682

United Airlines (UA)

12,220

Korean Air (KE)

International 30%

11,185

EVA Air (BR)

9,957

Cargolux (CV)

8,796

Lufthansa Airlines (DHL)

6,281

British Airways (BA)

5,949

Southwest Airlines (WN)

5,403

Continental Airlines (CO)

4,959

Martinair (MP)

4,957

Air France (AF)

3,824

Hawaiian Airlines (HA)

3,703

Hainan Airlines (HU)

3,510

US Airways (US)

3,050

Asiana Airlines (OZ)

2,471 0

Domestic 70%

Passenger "Belly" 36%

Freighter 64%

20,000

40,000

60,000

80,000

100,000

120,000

140,000

Volume in Metric Tons

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Airline Market Share Domestic United Airlines 6.1%

Other 7.0% Alaska/Horizon 46.0%

Southwest 10.3%

Hawaiian 7.1%

Delta Air Lines 18.6% Continental 5.1% 13

Airline Market Share Asia United Airlines 9.7%

Asiana 4.7%

China Airlines 24.3% Korean Air 21.5%

Hainan 6.7%

Delta Air Lines 13.8% EVA Air 19.1% 14

Airline Market Share Europe Martinair 14.9%

Other, 0.3%

Air France 11.5%

British Airways 17.9% Lufthansa 18.9%

Delta Air Lines 9.9%

Cargolux 26.5%

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Airport Industry Trends

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North Airport Properties • North end graphic

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South Airport Properties • South end graphic

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Existing 2009 Freight and Goods Transportation System

Freight Mobility

BINMIC

Port of Seattle Duwamish MIC Boeing Field

All air cargo moves by truck at some point in the journey

North Tukwila MIC

Airport access from point of origin is key Sea-Tac Airport Kent MIC

Keep freight mobility efficient and cost-effective Support statewide system investment to serve cargo

Port of Tacoma

Fredrickson MIC 19

Future Outlook for Sea-Tac Air Cargo currently in a growth mode Strong and growing international and express sectors With overall aircraft operations down at Sea-Tac, airport has capacity to grow cargo Focus on International Air Cargo Logistics Gateway Hub strategy as a jobs creator and export promoter Maintain and improve on-airport facilities Promote efficient and cost-effective regional freight mobility 20