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Instant Cargo Facilities Could Bring Struggling Airports A New Revenue Stream

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Instant cargo facilities are emerging as a solution to some of the challenges that air freights face. The increased demand for facilities in the air freight sector has provided an opportunity for instant cargo facility developers to find more effective solutions to help meet the rising popularity.

A Solution From AutoLogic Airports

Similar to the way airlines adapted to new market realities by stuffing cargo into cabins, airports can now field prefabricated cargo facilities, which will take no more than six months to start operating at low costs.

However, according to some cargo consultants, not all markets or airports may be suitable. Thus, AutoLogic Airports has created a low-cost cargo solution called iCargo, a semi-permanent modular building with integrated software and hardware capable of handling 40,000 to 3 million tonnes of cargo per year. It will enable airports with no prior cargo experience to generate a new revenue stream. It will also be completely feasible and offer a quick, automated solution to allow anyone to run it. It will be most ideal to place it in an airport that has more than just low-cost passenger traffic, and the fundamentals will be adaptable, meaning it could be funded by an investor or even an airport.

On the other hand, according to North American airport consultant Michael Webber, the fact that the US and European airport markets are very different is something to watch out for. He believes the US’s market share shifts do not appear to conform to the “potential demand generation.” This is because when we look at the cargo performance at airports in the fourth quarter of 2020, national and regional hubs for integrators appear to be doing exceptionally well. However, major passenger hubs like San Francisco, Atlanta, and Dallas were unable to compensate for the losses in belly capacity caused by their hub carriers.

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Webber has also made it clear that the infrastructure problems in the US and Europe were not the same. Although airports like O’Hare Airport and LAX struggled with capacity issues, it was mainly due to demolition or re-use of existing cargo buildings rather than excess demand. Bureaucracy is a major hindrance for US airport operators, and before an order can be placed, feasibility and environmental impact studies would most likely be required, which would add another year to the process.

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