Capitalizing on

Potential

Air Cargo Development at Washington Dulles International Airport

Defining the problem

The Washington Dulles International Airport does not currently capture air cargo business that sufficiently utilizes its current and projected operational capacity.

Research

• Operations Group• Regional Studies• Market Studies• Interviews• Site visits• Publications• Freight forwarder survey

Customer

Consolidation Center

Air Carrier

Consignee

Air Freight ForwarderConsolidation Center

Truck TransportTruck Transport Shipping Instructions

Load Plane Unload Plane

Air Freight Cargo Flow

Critical Factors

• Modal Choice and “Value Propositions”• Development of Inland Ports• Freight Forwarders• Air Freight Cargo Flow• Known Shipper Regulations• Household Goods, Personal Effects

Market

Freight forwarder survey

Sent to 44 air freight forwarders at IAD

Proposed Alternatives

• Develop VIP-IAD Relationship

• Current Operations• “Milk Run”• Build Airfreight

Consolidation Facility

• Cost Incentives Plan• Freighter Service• New Customer• Niche Market• IAD Freight

Forwarder Study

Criteria

• Feasibility

• Cost and Benefit

• Sustainability

Develop VIP-IAD Relationship

• Cargo movements are increasing

• Import/Export Ration is 2:1

• VIP not handling time sensitive shipments

• Not much opportunity for operational link

• Marketing link is possible

Freighter Service

• Current lack of capacity

• Not subject to “Known Shipper” rules

• Cargo volume must be guaranteed

• Demand determines service

New Customer

• Manufacturer• Freight Consolidator• Freight forwarder or

integrator• Costs could be

shared by several stakeholders

Develop Niche Market

• Household and personal effects market

• Approval for a TSA Known Shipper waiver program

• Get Known Shipper status for certain U.S. Government employees

Freight Forwarder Study

• Research and focus on freight forwarders

• Bring new customers to IAD

• Understand the needs and risks of the business

• Establish a forum for cargo development

Recommendations

• Build a relationship of mutual understanding and operations with regional freight forwarders

• Develop the resources and environment necessary to encourage a new major air freight customer to relocate to the region

Recommendations

• Facilitate growth of a niche market centered on movement of household goods and personal effects

• Continue efforts to attract the operation of a freighter service at IAD

Conclusion

• Not mutually exclusive alternatives• Freight forwarders are critical• Develop demand for air freight• Results will require time and patience

Practicum Participants

Kristen Bass William Bowden

Michael Broadus Randolph Butler

James Colyar Christie Dawson

Scott Faulk Melanie Frisch

Matthew Lesh Chris Loring

Lance Murray Nicholas Nies

Boris Populoh Tracy Sell

John Serra Angela Stubblefield

Morgan Turrell Clark Woods

Xin Zhou