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Capitalizing on Potential

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.

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Capitalizing on Potential

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  1. Capitalizing on Potential

  2. Air Cargo Development at Washington Dulles International Airport

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

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

  5. Air Freight Cargo Flow Consignee Customer Shipping Instructions Truck Transport Truck Transport Air Freight Forwarder Air Carrier Consolidation Center Consolidation Center Load Plane Unload Plane

  6. 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

  7. Freight forwarder survey Sent to 44 air freight forwarders at IAD

  8. 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 Proposed Alternatives

  9. Criteria • Feasibility • Cost and Benefit • Sustainability

  10. 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

  11. Freighter Service • Current lack of capacity • Not subject to “Known Shipper” rules • Cargo volume must be guaranteed • Demand determines service

  12. New Customer • Manufacturer • Freight Consolidator • Freight forwarder or integrator • Costs could be shared by several stakeholders

  13. 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

  14. 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

  15. 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

  16. 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

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

  18. Practicum Participants

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