Changing the Region Connecting the World

Changing the Region Connecting the World

Transforming America s Distribution Center into America s Aerotropolis Larry D. Cox, A.A.E. President and CEO, Memphis-Shelby County Airport Authority -------- Airport Cities World Conference, April 2008 Dallas, TX

How does an airport in a mid-size American city become a world model for Aerotropolis?

Focus on Community Attributes and Build on Strengths Memphis has been a center for trade since its founding in 1819 Trading post River trade along the Mississippi Rail leadership (5 Class-1 railroads) Interstate access (I-40 and I-55, I-20, I-69 NAFTA Highway, plus seven U.S. highways) Air cargo leadership was the natural progression

Established Distribution Leadership Attracted a Revolutionary Concept FedEx established at Memphis International Airport in 1973 Today its largest hub operation and corporate headquarters Employs 40,000 people in the metro area Is the catalyst for cargo leadership

Since 1973, The Night Skies Over Memphis Are The Busiest in the World

Focus on Community Attributes and Build on Strengths Memphis has been an entertainment center and tourist destination for decades Home of the Blues Beale Street Stax Records Birthplace of Rock n Roll Sun Studios Home to Elvis Graceland is the 2 nd most visited home in the United States Pandas at the Memphis Zoo Passenger traffic leadership was the natural progression

International Tourism Leadership Attracted a Passenger Hub A major airline hub established in 1985 by Republic Airlines Today, one of three U.S. hubs for Northwest Airlines Direct service to Europe (Amsterdam) established in 1995 Today Northwest offers 223 daily flights with direct service to 80+ cities

Northwest Gives Memphis Unprecedented Service for a City of Its Size?

An Attractive Passenger Airport in an Environment of Airline Consolidation The shortest connect time of any connecting hub in America One of the lowest percentages of cancelled flights A leader of on-time departures and arrivals Four modern runways, including the World Runway, to accommodate any aircraft in any weather condition Moderate weather Located centrally within 60 miles of the population center of the lower 48 states

Memphis International Airport Bringing it All Together Economic Impact: $20.7 Billion Annually 1 in 4 jobs locally, nearly 166,000 Nearly $6 billion in annual earnings

Memphis International Airport Cargo Impact World s busiest cargo airport since 1992 FedEx Super Hub accounts for 93.6 percent of cargo at MEM $19.5 billion of total economic impact from cargo operations 300 national and international nonstop destinations Enhanced by superior highway, rail and port access

The Nightly FedEx Sort in Memphis is One of the Wonders of Modern Business

Worldwide Air Cargo Leader 1. Memphis 3.84 million tons 2. Hong Kong 3.77 million tons 3. Anchorage 2.83 million tons 4. Seoul 2.55 million tons 5. Shanghai 2.49 million tons 6. Tokyo 2.25 million tons 7. Frankfurt 2.17 million tons 8. Louisville 2.08 million tons 9. Paris 2.01 million tons 10. Miami 1.92 million tons Source: Airports Council International, Geneva, Switzerland, 2008

To Support Growth, Memphis International Never Stops Investing Projects underway or recently completed New Air National Guard facilities FedEx expansion Cargo Central airport based cargo facilities Memphis-centric passenger terminal Roadway ingress, egress and signage New parking structure Grand transportation terminal New control tower ($61.5 million)

Why Does Memphis International Work Today? Cohesive Leadership that communicates A right-sized group of critical influence Business Government Community advocates Partnerships developed over the years

As a Result -- Memphis Focus for The Future is Airport-centric Aerotropolis is at the forefront of Memphis most aggressive economic development effort ever undertaken MemphisED $60-million in program management alone Involving 2,500 business and community leaders Memphis Airport Area Development Corporation Promoting and Improving Life in the Economic Heart of Our Community

B U S I N E S S C O N S T R U C T I O N D I N I N G L O G I S T I C S M E D I C A L N E I G H B O R H O O D S R E T A I L T O U R I S M Promoting and Improving Life in the Economic Heart of Our Community

Aerotropolis development in Memphis is on every priority list Memphis Chamber/Memphis Tomorrow Memphis and Shelby County Government FedEx and Corporate Leadership St. Jude Children s Research Hospital Memphis Medical Community Memphis Bioworks Foundation Medtronic, Smith & Nephew Graceland Memphis Convention and Visitors Bureau Beale Street

Aerotropolis Work is Focused and Structured for Impact Inside the Airport Gateways/Beautification Transportation/Access Corridor Development Marketing and Branding

Focus Beyond the Airport Boundaries Aerotropolis will expand the reach of Memphis International Airport from beyond the fence line for 25 or, even 60 miles A footprint that includes parts of three states. Anchors our quadra-mobile assets of air, rail, port, and highways

The Memphis Aerotropolis Boundaries

Conclusions Memphis International Airport defines Memphis today and sets the stage for our future. The airport is the largest single economic generator in the Memphis economy. Memphis business and tourism future is contingent upon the success of Memphis International Airport as an Aerotropolis. Memphis works because it is the right size with a focus on community-wide Partnership.