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ON THE COVER10 THE RISE OF THE AEROTROPOLIS

First there were cities, then there were suburbs—and now we have “airportcities.” From Memphis to Paris to Guangzhou, the world’s major airportsare forming the core of a burgeoning economic development strategyknown as the Aerotropolis. Take our in-depth look at the phenomenon ofbuilding macro-developments around bustling air hubs and find out whetheryour city is on the runway.

COVER PHOTO: INDIANAPOLIS INTERNATIONAL AIRPORT; DESIGN: MEGAN KNIGHT, GROUP C ART DIRECTOR

Business Facilities September 2010 Volume 43, Number 8,USPS 875-100 (ISSN 0746 0023) is published monthly, except for

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DEPARTMENTS 6 FIRST WORD

7 SNAPSHOTS

8 METRO SPOTLIGHT: TULSA, OKTulsa, OK thrives in both business and community with organizations and programs worthy of award recognition. Find out why the well-rounded city has been ranked number one so often.

CONTENTS

SPECIAL REPORT

30 INDUSTRY FOCUS: LOGISTICSHaving a logistics strategy can helpcontribute to lower costs. When milesmean money, you need a location thatcan minimize transportation waste andmaximize profits.

30

FEATURE26 UTAH IS MOVING TO THE HEAD OF THE CLASS

In our latest Governor’s Report, Gov. Gary Herbert explains the common-sense thinking behind non-stop growth in the Beehive State, which is moving to the top of everyone’s rankings lists.

26

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8DEPARTMENTS CONTINUED

20 CORPORATE MOVES: THE CAROLINAS• Caterpillar Grows in Lee County, NC• ATG Access Gears Up in Harnett County, NC• SAATI Brings 80 Jobs to Greenville County, SC

22 CORPORATE MOVES: NEW JERSEY• Pole Position Races into Jersey City• Camden UEZ Reaches a Milestone

40 CORPORATE MOVES: INDIANA• Cummins to Expand Seymour Engine Plant• Portland Agriculture Expands into Solar• Markland Business Park • Thermal Solutions Provider Expands in Greensburg

47 ADVERTISER INDEX

48 LIVEXCHANGE PREVIEW You won’t want to miss our incisive speaker presentationsat this year’s event at the Hotel Monteleone in New Orleans on Nov. 7-9. Here’s a preview.

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Read Our BlogDid you know that:

• You may not be able to see theEmpire State Building from New Jersey much longer?

• Furlough days caused CA stateworkers to picket Gov. ArnoldSchwarzenegger’s movie premiere?

• Columbus, OH is looking for a newcity slogan?

You would know if you’d been keep-ing up with the Business FacilitiesBlog. Share your comments today:www.businessfacilities.com/blog.php

Voice Your Opinion!Is the major airport in your state planning to develop into an Aerotropolis?

Take our online poll and let us know.

Breaking News• Whirlpool Corp. is investing $120

million and will hire 130 workersfor a Cleveland, TN cooking appliances factory.

• The U.S. Economic DevelopmentAdministration has awarded morethan $2.2 million for a second smallbusiness innovation center inWilkes-Barre, PA.

• CGS Tyre will invest $43 million in a new agricultural tire plant inCharles City, IA.

• TPI Composites, Inc. will open a69,000 square foot wind bladeinnovation center in Fall River, MAto support its manufacturing facilities around the world.

20 40

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November 7-9, 2010Hotel Monteleone French Quarter,

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“After attending LiveXchange, I am better able to help my companyplan expansions due to the information and advice of top site selection

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22

FIRST WORD

This month, we take a close lookat a phenomenon that may becoming soon to a major airportnear you: the rise of the Aerotropolis.

Some of the highest-volume air hubs, including Memphis,Paris, Guangzhou and Hong Kong, already have established a veryhigh standard for Aerotropolis wannabes. These global “airportcities” have parleyed their busy runways into macro-economicdevelopment engines that are transforming their regions.

Our Aerotropolis tour also took us to Detroit and Indianapolis,both of which have ambitious development strategies centered on their airports, and even to the dunes of Dubai. Onelook at Indianapolis International Airport’s spectacular new $1-billion terminal, pictured on our cover, should be enough toconvince anyone that our Hoosier friends are determined tomove to the top of the airport cities list.

Speaking of rising giants, our Governor’s Report throws thespotlight on a state that registered the most significant across-the-board gains in this year’s annual Rankings Report. Utah Gov.Gary Herbert details a common-sense approach that has beenrewarded with remarkable growth in the Beehive State.

Gov. Herbert also notes withdelight that Disney just finishedfilming an Edgar Rice Burroughsepic about Mars in the state’s starkestred-rocked landscape. We’ll take thatas confirmation that Utah’s potentialis positively galactic.

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Once a place strictly for air-planes to take off and land,the modern airport hasbecome something much

more significant for any company, orregion, contemplating its economicfuture. As air cargo and passengertraffic have grown—along with theneed to move them around the worldmore rapidly—so has the importanceof the airport, making it more andmore of a magnet for commercialand industrial development.

Around the globe, airport author-ities, politicians, business leaders andcorporate executives are recognizingthe airport as a job and revenue gen-erator. The runway is now the centralpoint of vital economic systems, withindustrial and logistics parks, officecomplexes, hotels, entertainmentcenters, shopping malls and evenupscale residential development allextending out from the terminal.

What was once the city airport isnow the airport city, or in the mostideal cases, the aerotropolis. The

term, new in the 21st century andcoined by John Kasarda, director ofthe Kenan Institute of Private Enter-prise at the University of North Car-olina, reflects the world economy’sever-growing demand for connectiv-ity, speed and agility. The aerotropo-lis is a new type of metropolis, onethat fans out from an airport for upto 20 miles, with layers of aviation-linked business clusters and resi-dences, all further linked by widehighways and express trains to facili-tate fast movement and seamless con-nectivity to the runway and the restof the world.

“The rapid expansion of airport-linked commercial facilities is mak-ing today’s air gateways anchors of21st-century metropolitan develop-ment, where distant travelers andlocals alike can conduct business,exchange knowledge, shop, eat, sleepand be entertained without goingmore than 15 minutes from the air-port,” Kasarda says.

While the aerotropolis idea is

gaining steam in the U.S., many air-port regions in Europe and Asiaalready lay claim to these develop-ments. Hong Kong, Dubai,Guangzhou (China), South Koreaand Malaysia’s Kuala Lumpur are allhome to carefully designed airportcities, while Paris and Amsterdamalso claim aerotropolis status.

“U.S. airports are considerablybehind many in Asia, Europe and theMiddle East when it comes to under-standing and implementing the air-port city and aerotropolis models,”Kasarda tells Business Facilities.“Most U.S. airport heads and theirsenior staff are just becoming knowl-edgeable of these models where air-ports are operated as much for com-mercial facility development asaeronautical infrastructure.”

Many American airports are plan-ning to try to replicate the aerotrop-olis concept, but those that arealready the center of multimodaltransportation networks and thrivingeconomies are leading the way.

COVER STORYBy Brian Donahue

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The Race to Plan the “Ultimate City”Starts at the Airport

AMERICA’S AEROTROPOLIS™Memphis, TN is generally consid-

ered North America’s premiere, per-haps its only, aerotropolis. The worldheadquarters of FedEx, MemphisInternational Airport has the distinc-tion of being the busiest cargo air-port in the world and also a majorpassenger airline hub. The airportpumps more than $28 billion intothe region’s economy, and airport-related companies are responsible for220,000 jobs, or one in every threein Memphis, according to a recentUniversity of Memphis study.

While the airport is the heart ofthe aerotropolis, it is just one part ofthe robust transportation system thatis crucial to Memphis’ success.Equally vital to the city’s strength as alogistics hub are its superior road andrail networks and its port on the Mis-sissippi River. All play integral rolesin the economy of a city that is fore-casted to see increased activity inboth freight and passenger traffic inthe years ahead. A recent study by

IHS Global Insight Inc. noted that asthe global economy rebounds fromthe Recession, the U.S. will see anincreased demand for imports fromSouth America, Eastern Europe andparts of Asia, the regions expected tobounce back first. Those goods will

go to market through container traf-fic, making Memphis, with its lower-cost water and rail options, an attrac-tive distribution point.

Memphis has been nurturing itsassets and preparing for an evenbrighter future. The airport itself hasbeen modernized and expanded overthe past 15 years with nearly $1 bil-lion in improvements. One recentaccomplishment was a recent landexchange that saw the Tennessee AirNational Guard’s base moved from a103-acre airport site that was sur-rounded by FedEx to another part ofthe air field where it built a state-of-the-art base. Years in the making, theexchange allowed FedEx to accom-plish a critical expansion onto theformer base.

“That was a win-win-win allaround,” says Arnold Perl, an attor-ney with Ford & Harrison LLP andchairman of the Memphis ShelbyCounty Airport Authority. “And itillustrates, I think, the culture thatexists within the Memphis airport

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Millions of parcels move each night through theFedEx global hub at Memphis International Airport.

community to expand the horizonsof this airport and aerotropolis.”

It’s been a common theme inMemphis: Business and governmentleaders joining forces to pave the wayfor future success. Regional leadersincluding the Greater MemphisChamber have been focused on plan-ning and accomplishing broadimprovements to the area surround-ing the airport, with numerous proj-ects designed to strengthen the area’sposition as a logistics center.

Memphis’ five Class I railroadshave in recent years invested morethan $500 million in new orexpanded rail systems, which alreadybring more than 200 trains throughMemphis each day. The city’s portwill also get busier as river trafficincreases with the planned expansionof the Panama Canal, so more railconnections to the water are in theworks. The highway network is alsogrowing. Memphis is located at theintersection of interstates 40 and 55,which both cross the MississippiRiver, and the city will be a centrallocation on I-69, nicknamed theNAFTA Superhighway since it willrun from Mexico to Canada. Also,

the construction ofI-22 from Memphisto Birmingham isnearly complete,providing yetanother direct con-nection to major EastCoast markets.Meanwhile, planscall for the city togain a third bridgeacross the Missis-sippi, accommodat-ing road and rail.

Perl says Mem-phis is unified and

determined to continue to developthe aerotropolis. And he says thehard work has paid off, noting thatFedEx recently won the Institute ofTransport Management’s “BestGlobal Cargo Hub” award for itsMemphis World Hub. The judgingpanel cited the company’s achieve-ment in successfully uniting the dis-parate capabilities of the city ofMemphis—road, rail, river and air—to create a lynchpin of tradewithin the U.S.

“FedEx’ award as the best cargohub highlights that Memphis con-tinues to earn the accolade or repu-tation as America’s Aerotropolis™,”Perl says. “And Memphis Interna-tional Airport still has availability,still has further capacity to enableFedEx to further expand on that air-field. Very few airports would havethat. We do.”

EVOLVING AEROTROPOLIS IN THE LONE STAR STATE

To see the economic value of anairport, look no further than DallasFort Worth International (DFW),which generates more than $16 bil-lion in annual economic activity,

supports more than 300,000 full-time jobs and stands as the greatestcatalyst in the North Texas economy.Of its $619 million in annual rev-enue, only about a third comes fromthe airlines. The majority is gener-ated by commercial development,land leases, golf courses and hotelssuch as the terminal-linked GrandHyatt Hotel, “a fly-in virtual corpo-rate headquarters for many U.S.businesses,” Kasarda notes. The air-port continues to pursue new rev-enue-generating development withinits sprawling 18,000 acres.

But DFW’s impact is felt farbeyond its perimeter. Since openingin 1973 in a largely farmed region,the airport, the third busiest in theworld, has done wonders for thegrowth and economic vitality of theentire North Texas region, now hometo 24 Fortune 500 companies and6.5 million people. The airport hasbeen a magnet for corporate reloca-tions and has resulted in pockets ofwealthy bedroom communities forcorporate executives with travel-intensive jobs. Many firms, ExxonMobil among them, have taken rootin the planned, 12,000-acre commu-nity of Las Colinas, located betweenDallas and Forth Worth. This air-port-edge city is home to more than22 million square feet of office space,8.5 million square feet of light indus-trial, 1.3 million square feet of retail,more than 14,000 residences, 3,800luxury and business-class hotel roomsand two championship golf courses.

Kasarda also points to the DallasMarket Center as an illustration ofthe extended commercial reach ofairports. The market complex, off I-35 about 17 miles from DFW, com-prises 5 million square feet of displayspace for home furnishings, clothing

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COVER STORYThe Rise of the AerotropolisCOVER STORYThe Rise of the Aerotropolis

The Institute of Transport Management has judged the FedEx operation inMemphis the world’s “Best Global Cargo Hub.”

and other goods. It is the world’slargest wholesale merchandise mart,attracting buyers from all 50 statesand 84 countries, with an estimated$8 billion in annual transactions.

“I don’t know if you could say allof it is the result of the airport, butit’s obviously played a significant rolein the growth of North Texas,” saysMabrie Jackson, president and CEOof the North Texas Commission,which focuses its efforts on economicvitality and other quality of life issuesin the region. “While the airport hasbeen a huge factor in our growth,there are a lot of other factors thatimpact that growth—low cost ofdoing business; a very pro-businesslegislative policy across the board inthe state; no state income tax,;greatquality of life; good schools; greataccess to everything you need toprosper in your life. But the airporthas obviously played a tremendouslysignificant role.”

Jackson sees DFW as a model foreconomic success.

“I think you could see this justfrom inside the airport—you look athow they’re redoing the terminals to

where you can eat, you can shop, youcan do a lot of things at a terminal,that’s tremendous,” Jackson says.“And you’re going to see a greatimpact as the older terminals getrevamped over the next several years.But the airport, the strategic locationbetween Dallas and Forth Worth andits proximity to the network of all thehighways and shops provide develop-ers with numerous advantages, andthe airport does a great job in pro-moting a productive business envi-

ronment for office, retail and distri-bution areas.”

AIRPORTS SEEN AS KEY TODETROIT METRO ECONOMY

Detroit is uniquely positioned tobecome an aerotropolis, and manythere are poisted to make that visiona reality. The region aims to leverageits two airports, Detroit Metropoli-tan and Willow Run, which sit sevenmiles apart with thousands of unde-veloped land in between, to drive aneconomic transformation through-out Southeast Michigan.

Working in Detroit’s favor are air-port capacity and connectivity, withDetroit Metro offering nonstop serv-ice to 160 destinations around theglobe, and Willow Run being amajor air cargo and general aviationfacility. Another positive is its openinternational border, and the factthat 80 percent of Canada’s tradegoes through Detroit. Also, a maturerail and highway system linkingSoutheast Michigan with the rest ofthe U.S. is already in place, thanks tothe auto industry.

“The other big advantage is we


Detroit Metro airport is centrally positioned to offer non-stop serviceto 160 destinations around the globe.

DFW covers nearly 30-square miles and has seven main runways.

have a lot of land,” Wayne CountyExecutive Robert Ficano, who hasmade the Detroit Region Aerotropo-lis a central focus of his administra-tion, tells Business Facilities. “Mostmajor airports are landlocked, we arenot. We have thousands of acres thatare available around Detroit [Metro]and Willow Run, and extending outI-94 towards Ann Arbor as well astowards Detroit.”

The aerotropolis vision forMotown encompasses about 60,000acres of land and involves the cluster-ing of air commerce-linked busi-nesses, office space, hotels, retailmalls and recreation, around the twoairports. A study completed by JonesLang Lasalle estimated that the newdevelopment could create 64,000jobs, more than $10 billion in eco-nomic activity and $171 million intax revenue.

Last year, officials from two coun-ties and seven municipalities signedan agreement to create the Aerotrop-

olis Development Corp., which willserve as the conduit to brand andmarket the concept as a unified regionand create a one-stop shop for entitle-ments, incentives and regulatory assis-tance. Ficano, having visited theworld’s largest aerotropolis, DubaiInternational, where businesses canget their approvals and start buildingin a month’s time, saw firsthand theimportance of providing ease ofaccess. The interlocal agreement cre-ates uniform zoning and enablesprospective investors to get permitsand zoning approvals in 60 days.

Another key has been GeneralElectric, which recently opened a$100 million R&D center in WayneCounty, just a few miles fromDetroit Metro. The development islikely to draw related businesses tothe area and is in itself a springboardfor the desired aerotropolis.

“The whole premise at this pointis not only to turn it into an eco-nomic engine, but to brand the areaas well,” Ficano says. “And we’re for-tunate that right smack dab in themiddle of it is GE [which has hired]up to 1,400 people. General Electric,to the aerotropolis in Detroit Metro,is the same as what Hewlett Packardwas to Silicon Valley when they firststarted. You need an anchor and thenyou can go out and start marketingand show how it works.”

However, there have been politicalobstacles—the state Legislature hasstalled a package of bills that are cru-cial to the success of the aerotropolis.The Next Michigan DevelopmentAct, which would create a variety oftax credits and other incentives tostimulate economic developmentnear the airports, was passed in theMichigan House last year but awaitsaction in the state Senate. Ficano is

hopeful the measure will be enactedthis fall. It’s a matter of time beforeSoutheast Michigan has its aerotropo-lis, Ficano says, pointing out thatupwards of 20 companies have recentlyset up shop around the airport.

“We want it to happen quicker,”he says. “The incentives would helpus with that as well.”

INDIANAPOLIS SEEKS TO CAPITALIZE ON AIRPORT AREA

The aerotropolis concept is beingconsidered as part of a newlylaunched effort to plan for the futureof Indianapolis International Airportand its surroundings. The airport,which opened a new $1.1 billion ter-minal in 2008, is setting out toestablish a broad master plan thatincludes maximizing the use of its8,000 acres and redeveloping its vastformer terminal area.

“Now that the new IndianapolisInternational Airport has been openfor nearly two years, we’re focusingon achieving operational efficiency,growth of the airport system, andlooking for new ways to diversify andmaximize our revenue while support-ing economic development effortsthroughout central Indiana,” JohnD. Clark III, executive director andCEO of the Indianapolis Airport

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Indianapolis International Airportis the linchpin that connects economic development activitiesthroughout central Indiana.

The aerotropolis vision for Detroit Metro and surrounding areas encompasses 60,000 acres.


Authority, tells Business Facilities.The airport board is evaluating all of

its land and facilities to determine thehighest and best uses, assessing proper-ties for short- and long-term aviationneeds and for non-aviation uses.

“We’ll look at aviation forecastsover a 20-year horizon, analyze devel-opment patterns at airports similar toIndianapolis, and conduct a com-plete market assessment, amongother things,” Clark says.

Earlier this year, the airportauthority awarded a $1.3 millioncontract to a team of consultants ledby Cincinnati-based Landrum &Brown to study the airport area andmake recommendations for futureland use. The team is expected to

issue a report by year’s end.“We want to ensure aviation

development in central Indiana iswell-planned and that we are pre-pared to meet both current andfuture aviation needs,” Clark says.

“By engaging in the study now, wewill develop a new master plan forIndianapolis International that willdrive our activities for the next 30years or more.”

Indianapolis airport officials and

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Indianapolis International Airport is home to FedEx’s second-largest U.S. hub and major distribution centers.

other stakeholders have also met withKasarda to discuss ways of growingbusiness intelligently in the region.Clark believes Indianapolis can sup-port and benefit from an aerotropolismodel, with businesses of all types—time-sensitive manufacturing and dis-tribution companies, light industrialoperations, hotels, entertainmentcomplexes, retail shops, restaurants,convention centers and office parks—

extending outward from the airport.The airport has several advan-

tages, with ample open land, a goodroad network and large commercialfacilities already at the airport, whichis FedEx’s second-largest U.S. huband home to several large distribu-tion centers.

“One major advantage is that wehave the physical capacity for addi-tional growth, unlike [many] major

U.S. airports that are landlocked. Wehave undeveloped land with greatpotential for generating new businessand commerce,” Clark says, also not-ing the rail system, interstate accessat “the crossroads of America” and arelatively low cost of doing business.“The challenges we face are primarilyeconomic. The continued turbulenceof the global economy makes ourgoals more challenging, but they arestill achievable.”

Also on the U.S. aerotropolis

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“We want to ensure aviation development iswell-planned. We will

[create] a master plan forIndianapolis International

that will drive our activitiesfor the next 30 years.”

—John D. Clark III

John D. Clark III, executive director and CEO of the Indianapolis Airport Authority.

A new $1.1-billion terminal at Indianapolis International Airport has opened the former terminal site for development.

Major interstate highways converge at Indiapolis International at “the crossroads of America”


radar is Denver International Airport(DIA), which opened in 1995 andspans an immense 34,000 acres. Itsplanners’ objective was to have DIAdrive economic developmentthroughout the surrounding airportarea and play a role in revitalizingdowntown Denver, 24 miles to thesouthwest. Now home to more than300,000 residents and 184,000workers, the 300-square-mile DIAarea is forecasted to grow at a rate atleast double that of the overall metro-politan area, with a forecasted popu-lation of 558,000 in 2025 and a totalemployment base of 427,000.

In Atlanta, where more than 90million passengers fly in and out ofHartsfield-Jackson International Air-port, a developer has plans to build aproject being called AerotropolisAtlanta. Jacoby Development Inc.’sproposal for a former Ford Motor Co.site includes office space, hotels, retail,restaurants, a light industrial businesspark and 4,000 parking spaces, allwith a direct connection to the air-port’s new terminal across the street.

FEDEX GIVES RISE TO AERO-TROPOLISES IN EUROPE, ASIA

Paris-Charles de Gaulle airport,one of two international airports inthe Paris region, is the world’s sixth-largest airport for passengers and thetop European airport for freight. Buteconomic developers say it also hasthe greatest development potential inWestern Europe, an opportunity thatFrench players have decided to seizein order to stimulate the creation ofbusiness activities and jobs in France.

The airport, which accounts for150,000 jobs, has experienced 30percent growth in the past 12 years,according to the Paris Chamber ofCommerce and Industry. While air-

port manager Aéroports de Paris(ADP) has made many investmentsin the past five years to increasecapacity, and has further plans tomodernize terminals and improvethe appeal and competitiveness ofCDG and two other area airports,there are broader plans in the works.

FedEx, which has the second-largest operation at CDG, behindAir France, has plans to expand itsParisian base by the end of 2015. Infact, the company has launched anew business association, Aerotropo-lis Europe™, to kick-start the eco-nomic potential of the airport area.Created last December and involvinga team of 11 private and institutionalinvestors from various sectors, Aero-tropolis Europe currently involvesthe development of nine projects—including the Aeroville mall, a golfpark, the Les Grand Champs Euro-Chinese trade center, the Parc Mailoffice development, the Paris Nord 2international business park andPlanet France, a complex of offices,luxury hotels, boutiques and restau-rants—a total investment of nearly$4 billion. The developments are

expected to create close to 15,000jobs upon completion.

“With the largest GDP in Europe,Paris is an attractive destination forforeign companies seeking to investand develop their business in Europeand access over 500 million con-sumers,” says Alain Chaille, vicepresident of operations for FedExExpress Southern Europe and presi-dent of Aerotropolis Europe™. “Asthe largest parcel market in theworld, Europe has tremendousgrowth potential, With the recentexpansion around Roissy-CDG, theAerotropolis Europe™ association,with the support of all of its mem-bers, has the ability to propel thisarea onto the international stage.”

Chaille has attributed the inspira-tion for the Paris initiative to the suc-cess of Memphis, and the goal is tomake CDG a global distributionpowerhouse on the scale of its Amer-ican counterpart.

Working with the AerotropolisEurope™ group is an effort that is ledby the Paris Region Economic Devel-opment Agency (PREDA) andinvolves nearly two dozen public and


Paris-Charles de Gaulle Airport, seen here, is said to have the greatest development potential in Europe.

private economic players in the Parisregion. PREDA is using the brandHubstart Paris to reinforce the inter-national reputation and economicappeal of the CDG airport area. Thestrategy focuses on further developinga dozen key markets, including air-port services, business aviation, eco-activities, professional meetings andevents, and language training centers.

“The development of airport areasis no longer limited to land takesmanaged by players in the airportindustry,” says Denis Tersen,PREDA’s chief executive officer.“The academic works on airportcities, airport corridors or the aero-tropolis concept all show that eco-nomic areas within a rather largeperimeter around airports arebecoming these strategic sites whereglobal activities with a high need formobility are concentrated.”

Tersen made note of major enter-prise plans near the airport includingthe WTC Airapolis, which calls for aWorld Trade Center complex with aninternational convention center, fourluxury hotels, exhibition halls andoffice space. The project is expectedto be completed in late 2011.

With a new rail line soon to beginproviding rapid access from Charlesde Gaulle to the center of Paris in 20minutes, and highway access to theairport also being improved, the air-port region is poised to become oneof the most dynamic business centersof the greater Paris area.

In Southern China, GuangzhouBaiyun International Airport is mak-ing gains as an economic and ship-ping juggernaut. The main hub ofChina Southern Airlines and a focuscity for Shenzhen Airlines, the air-port is at the gateway to the PearlRiver Delta, a manufacturing region

that takes up 30 to 40 percent ofChina’s foreign trade. A recent $2.4billion reconstruction projectbrought the airport’s capacity from31 million to 80 million passengersper year, and its cargo capacity is 2.5million tons.

Propelling the airport into theglobal spotlight for cargo was FedEx’choice of Guangzhou for its largestinvestment outside the U.S. The car-rier opened a $150-million, 900,000-square-foot facility at the airport in2009, amid forecasts that intra-Asiacargo traffic would expand by 8.1 per-cent per year and Asia-to-North Amer-ican traffic would grow by 6.7 percentannually. China accounts for the largestshare of the Asia-to-North America aircargo market, reaching 36.7 percent in2007, and China’s economic growthand demand from North America andEurope economies should help bolsterair trade prospects for the region.FedEx, referring to Guangzhou asAsia’s Aerotropolis, expects that its newAsia Pacific hub will be the centerpoint of its operations in the region forthe next 30 years.

The airport, which is also home tothe new 460-room Pullman BaiyunAirport Hotel, will nurture the city’sstatus as a magnet for foreign invest-ment and economic development.Guangzhou serves the historicGuangdong Province of China,known as the “factory of the world.”More than a third of China’s exportscome from this province.

THE MODEL AEROTROPOLISA few examples of airport cities

that have blossomed into full-blownaerotropolises, according to Kasarda,are Hong Kong, Incheon and Dubai.

Hong Kong International Airport,located on 2,700-acre site created byleveling two small islands, opened in1998 at a cost of $20 billion. Itincludes a 26-mile, multi-laneexpressway and express trains toKowloon and Hong Kong Island.The airport is connected by high-speed turbo-jet ferries to the PearlRiver Delta. The airport areaincludes a 70-acre commercial dis-trict for logistics, a 52-acre districtfor offices; and SkyCity, a 125-acre

1 8 S E P T E M B E R 2 0 1 0

The $20-billion Hong Kong International Airport,pictured here, was created by leveling two islandson a 2,700-acre site.


commercial development adjacent tothe passenger terminal.

In South Korea, Incheon Interna-tional Airport opened in 2001 on15,000 acres 42 miles south of Seoul.Yeongjong Island houses Air City,with aviation-related office func-tions, hotel, trade and exhibitionspaces, logistics, and tourism andleisure activities. The 1,500-acreNew Songdo City is being developedon nearby Songdo Island as a $20-plus billion global business and tradecenter. Plans call for 15 millionsquare feet of office and commercialspace, more than 9,000 residences, aconvention center, a cultural center, acentral park greenway, an 18-hole


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Aerial view of Hong Kong International AirportContinued on page 44

golf course, and a state-of-the-artmedical facility.

Amsterdam’s Schiphol Air-port, which employs 62,000 peo-ple, has incorporated modernretail plaza design elements andexpansive shopping and enter-tainment arcades for travelers andnontravelers within its passengerterminal. A 4 million-square-footWorld Trade Center with meetingfacilities and office space is con-nected to the terminal, and space forcargo distribution, office parks, andtime-sensitive light industry islocated along the outer edges of theairport. The nearby city of Zuidascontains more than 10 millionsquare feet of office and retail space,and close to 9,000 multifamily resi-dences are planned.

Dubai has been a major aerotrop-olis pioneer, according to Kasarda.Dubai International Airport isamong the world’s leaders in dutyfree sales and the Dubai Airport Free

Zone provides 13 million square feetof offices, logistics and distributionfacilities, and light manufacturing forover 300 companies. Further, DubaiWorld Central, being built aroundthe soon-to-open Al Maktoum Inter-national Airport, is a $33-billioncomplex with a number of mini-cities featuring logistics, finance,high technology, retail, office build-ings, hospitality, education, recre-ational and residential development.Kasarda has written that DubaiWorld Central “sets an extraordinar-ily high bar for its airport city andaerotropolis development.”

As more and more international

airports line up on the global runwayand vie for aerotropolis status, amajor international trade getheringhas emerged as a showcase for theseefforts. Held in Beijing this year, the2011 Airport Cities World Confer-ence & Exhibition will take place inMemphis, TN on April 11-13 at theworld-famous Peabody Hotel indowntown Memphis.

The Airport Cities World Confer-ence & Exhibition is the annual eventfor airport and airline CEO’s, eco-nomic development agencies, real-estate developers, architects and plan-ners and all other businesses taking

citizenship in the emergingaerotropolis. Held each yearfor more than a decade,ACE has grown into amust-attend conference forthe aviation world.

This year’s conference inBeijing featured a compre-hensive overview of thefundamentals of AirportCity planning and develop-ment by Prof. Kasarda andtwo of his colleagues.Attendees learned about

strategic guidelines for planning,designing, financing and developinga successful Airport City.

Topics covered at the ACE con-ference included: understanding theAirport City business model; bestcases worldwide; critical success fac-tors; physical and spatial layouts;key commercial components; basicplanning principles; architectureand facility design; financing com-mercial developments; attractingtenants and users; maximising non-aeronautical revenues; marketingand branding; governance and localcommunity relations; and meetingsustainability challenges.

4 4 S E P T E M B E R 2 0 1 0

Dubai’s Al Maktoum International Airport,above and at right, has become the centerpieceof a planned $33-billion complex with a num-ber of “mini-cities” to be developed.


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