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Heathrow Cargo

Heathrow cargo spend set to increase

Heathrow has been given the green light to spend £43m on its cargo activities – but input from carriers could stretch the budget further.

Head of Heathrow Cargo Nick Platts has long campaigned for a freight budget, and now has a five-point plan for the cash.

But one item on his wish list – a “forecasting and insights workstream”, which would give the airport better information on its cargo activities – is actually data the airlines already have.

“It would give us a macro level forecast with forward projections. Then we can identify high-risk days for congestion, and that can be built into the planning model. It’s really about better resource planning,” he explained.

“Leicester University has developed a flight level tool – it looks at aircraft type, destination and tonnage forecast and could help us to establish demand at the control posts. You then look at the landside vehicle movements.

“We need better insight into what’s moving, when and how. All we find out is what has departed or arrived, with no visibility on trucks or transfer traffic. We estimate that about 45% of volumes are transfer traffic – but we don’t know. So we don’t know what facilities to provide.

“We know the US is a big tradelane – but what’s moving on that lane? Do we need special handling facilities? Should we change the terminal design? Should it be biased towards traffic to the US, or Asia?

“All the master planning designs are informed by passenger flows – we need to do that for cargo.”

The carriers already have the data, but Mr Platts said they did not want to share it with the airport.

“We don’t know our trade flows, and we need to know. If the airlines won’t work with me, we will have to spend money – their money in fact – on finding information they already have.”

Another item on his list is an airside transfer facility for aircraft-to-aircraft movements, with a Border Force station.

“Border Force has indicated that it would look favourably at a transfer facility,” said Mr Platts. “And we had one airline agree, and helped choose a spot for it. Then we got caught up in governance and the airline ended up changing its mind.

“However, another airline is interested and we will have more discussions about the building and what facilities are needed.

“It will be fairly basic for now, but as part of the expansion programme we have set aside additional land for screening and will work with airlines on that.”

The initial facility will cost about £1m, said Mr Platts.

Next on the shopping list is a truck park near Terminal 4.

“There will only be space for about 75 vehicles, but it’s a start,” said Mr Platts. “We will have to relocate the existing users, add toilets and showers for the hauliers and we are talking to landlord Segro as to how we link it to the cargo area.”

The park is one of the more expensive items on the list – at about £14m – as the site needs to be cleared.

Next up is a single examination area for Border Force, Customs and a new animal reception centre.

“It will be a more efficient use of inspection spaces and will reduce traffic,” said Mr Platts. “And it will be a much more efficient operational set up. The animal centre needs more capacity; we have identified a site and we have the broad requirements.

“It’s not just a new building, it’s about using new technology and introducing new ways of working.”

The new centre comes with a price tag of £23m.

Heathrow also plans to build a new stillage facility, with racking for empty ULDs.

“At the moment containers are stored on the ground, and we have found that they blow loose – and have even blown towards the runway.”

The rack will hold about 870 ULDS and was once all set to be developed, until the supplier tasked with building it went bust. Heathrow is now looking for a new supplier for the facility, which will cost about £3m.

Heathrow announced last week that volumes were up 1.5% in the first nine months of the year, reaching 1.3m tonnes, which it said was due in part to five new services to China.

Source: The Loadstar

 

heathrow expansion

It is a YES for Heathrow Expansion

In a landmark vote yesterday, Parliament unambiguously (415-119) backed expanding Heathrow – ending decades of political debate on one of the UK’s most pressing infrastructure issues.

MPs from across political parties joined forces to support the Government’s Airports National Policy Statement. The vote clears the way for Heathrow to submit an application for development consent for the project – unlocking billions of pounds in growth and creating tens of thousands of new skilled jobs across the UK in the early years of Brexit.

  • MPs across political parties united to unequivocally back expanding Heathrow – ending decades of political debate;
  • Approval unlocks billions in growth, secures tens of thousands of new skilled jobs and will ensure Heathrow expands sustainably;
  • Heathrow will now prepare an application for development consent which will see construction begin in 2021;
  • Within the next 12 months alone, Heathrow will sign £150m in contracts with British businesses, creating 900 new jobs and 200 new apprenticeships.

Britain won’t have to wait long for the benefits of an expanded Heathrow. Over the next 12 months alone, the airport will sign £150 million worth of contracts with British businesses, creating 900 new jobs and 200 new apprenticeships. Heathrow will also announce the locations of the off-site logistics hubs that will allow businesses across the country to get involved with what will be one of Europe’s largest infrastructure projects.

What an expanded Heathrow could look like between 2030-2035?

Parliament’s historic vote is the culmination of a rigorous, evidence-based selection process – including review by the independent Airports Commission and the Government – which determined not only that expanding Heathrow offers the greatest benefit to all of the UK, but that it can be done sustainably.

Over the past six years, Heathrow has worked with local communities to design an expansion plan that treats local people fairly. In addition to the thousands of new jobs the project will create for local residents, Heathrow has also made binding commitments to deliver a £2.6bn compensation package to local residents, implement a 6.5 hour ban on scheduled night flights and a triple lock guarantee to meet air quality obligations.

Heathrow will also release detailed plans over the coming months to deliver a skills strategy so local residents can benefit from up to 40,000 new skilled airport jobs that an expanded Heathrow requires – an opportunity that has the potential to end youth unemployment in local boroughs.

The vote secures a £14bn private investment for the UK – the largest private project in Europe. It will transform the country’s only hub airport, stimulating growth and opportunities for communities the length and breadth of the UK.

With up to 40 new long-haul trading links, double the cargo capacity, more competition and choice for passengers and new domestic flights – an expanded Heathrow will make Britain the best connected country in the world and sends the strongest signal to date that Britain is open for business.

With a commitment to deliver an expanded Heathrow affordably with airport charges staying close to today’s levels – it is a huge prize for British business and Heathrow passengers.

Heathrow CEO John Holland-Kaye said,“Parliament has ended 50 years of debate by deciding that Heathrow expansion will go ahead. This vote will see us deliver more jobs, create a lasting legacy of skills for future generations and guarantee expansion is delivered responsibly.”

“We are grateful that MPs have made the right choice for Britain and today we start work to create the best connected hub airport in the world.”

Over the coming days, the Secretary of State for Transport is expected to designate the final Airports National Policy Statement approved by Parliament. This will set the policy framework for Heathrow’s northwest runway development consent application.

Heathrow is currently preparing to hold a second public consultation on its plans before submitting a development consent order application to the Planning Inspectorate, kick-starting an approval process expected to take 18 months. In addition to Heathrow’s consultation, the development consent process will provide further opportunities for residents and stakeholders to influence Heathrow’s proposal.

If Heathrow is granted development consent, construction would begin in 2021 ahead of the new runway opening in 2026.

Source: Heathrowexpansion.com

Heathrow expansion

Heathrow expansion plans approved

The UK government has backed plans for the development of a new runway at Heathrow Airport.

The UK Cabinet’s economic sub-committee approved plans for a third runway at the London airport before the proposals were backed by the full cabinet.

The UK secretary of state for transport Chris Grayling said: “A successful, thriving aviation sector is critical to our ability as a nation to succeed, which is why we are developing a strategy to help it grow in a sustainable way.”

MPs of all parties will be asked to vote on the plans in the coming weeks.

The news was cautiously welcomed by freight forwarders.

Robert Keen, director general of the British International Freight Association (BIFA), said: “Hopefully, this news is the beginning of the end of years of procrastination over the expansion of UK aviation capacity.

“If that is the case, it is long overdue good news for our 1,500 member companies who have been dismayed over the ongoing delay on such a huge issue.

“However, we understand that MPs will now be asked to vote on the issue in the coming weeks and, given the track record of parliament on this issue over the last 20 years, uncertainties remain.

“Whilst the UK Transport Secretary has previously hinted at an expedited planning procedure, with no reopening of high level arguments, the inevitable legal challenges and the convoluted planning processes that are also likely, lead me to wonder whether any expansion will be completed by the time that UK aviation capacity is predicted to run out in 2025.

“I hope I am proved wrong, but I won’t be booking a ticket for the opening ceremony just yet.”

Heathrow chief executive John Holland Kaye said: “Together with our supporters across the country, we urge all MPs to vote for expansion.

“Their votes will connect all of Britain to global trade, increase competition and choice for passengers and create tens of thousands of new skilled jobs for future generations. The world is waiting for Britain. It’s time to vote for Heathrow expansion.”

However, it is not entirely certain that MPs could be relied on to vote in favour of the plan.

Boris Johnson, foreign secretary and member of parliament for Uxbridge, one of the regions that could be affected by an expanded Heathrow, said on one occasion that he would “lie down in front of the bulldozers” to prevent the new runway going ahead.

Many other prominent members of the Conservative Party are also against the plan, arguing that capacity at regional airports should be expanded instead of Heathrow.

Some Labour MPs are also opposed – despite the fact that a Labour Government had voted through an earlier version of the third runway scheme in 2009 – on environmental grounds, saying that it would breach air pollution and noise limits.

One possible solution for Prime Minister Theresa May is to allow Conservative MPs who oppose the plan to abstain, in the hope that there would be sufficient votes from other parties’ MPs to carry the plan through.

Bringing the long-running third runway saga to an end could be seen as a political coup for the minority Conservative government that has been grappling with the extremely thorny ‘Brexit’ issue over the last two years. It would also send a message that despite the UK’s exit from the European Union, the country is still open for business with the wider world.

There are also likely to be objections from local residents and environmental campaigners, who will argue that the plans will breach air pollution limits.

Grayling said it was a “historic moment”.

Announcing £2.6 billion in compensation for residents and noise abatement measures he said it would only proceed if air quality obligations were met.

“The time for action is now,” he told MPs, insisting the decision was being taken in the national interest and would benefit the whole of the UK – with 15% of new landing slots “facilitating” regional connectivity.

The scheme, he insisted, would be funded entirely privately and while the expansion was a “number of years away”, he believed it could be concluded by 2026.

The debate on expanding Heathrow has been going on for nearly 20 years.

The last Labour government backed the idea, and won a vote on it in 2009, but that plan was scrapped – and the idea of expansion put on hold for five years – by the Conservative-Lib Dem coalition formed after the 2010 election.

But the idea of expansion was resurrected and has been subsequently backed by the Conservatives. Ministers approved a draft national airports policy statement in October setting out the conditions for a new runway, Parliament has yet to give its approval for detailed planning to begin.

Heathrow is the largest UK port by value and has ambition is to become one of Europe’s best airports for cargo.

The UK economy benefits greatly from cargo, and Heathrow is the UK’s largest port by value for non-EU exports, transporting more than Felixstowe, Southampton and Liverpool.

They are also uniquely placed as a transatlantic and European gateway with 95% of the global economy potentially within reach of a direct flight from Heathrow. Nowhere is better placed to connect UK exporters to the world and help the UK achieve its target of doubling UK exports to £1 trillion by 2020.

Their strategy will lift freight volumes capacity to 3 million tonnes a year by 2040 through improved service and increased capacity from expansion. For cargo customers our aim is to become a trusted partner – timely, reliable and easy to do business with.

 

Source: Air Cargo News / BBC / Sky

air freight

Record Cargo performance for Heathrow in April

London-Heathrow airport cargo volumes enjoyed their 21st consecutive record month in April 2018, as trade growth at the UK’s largest port by value increased by 2.3% year on year to 141,215 tonnes compared to the same time last year.

The US (+4.1%), India (+7.1%) and China (+10.9%)  were among the fastest growing countries for cargo in April.

For the January to April 2018 period, Heathrow handled 557,950 tonnes, 3.8% increase, while in the running 12 months from May 2017 to April 2018, the hub handled just over 1.7m tonnes, an 8.8% rise.

Heathrow chief executive John Holland-Kaye said: “We’re seeing more passengers and trade flow through Heathrow than ever before. A third runway is a tremendous opportunity to grab a greater share of this global growth for Britain and we’re counting on our politicians to seize it with a ‘yes’ vote on Heathrow expansion this summer.”

Source: Air Cargo News / Heathrow Media Centre

Heathrow Cargo

Record breaking figures for Heathrow

Freight travelling through Heathrow reached record levels for the start of the year, as over 133,000 tonnes made its way through the airport in January, with export volumes growing by 10.6%.

The top destinations for cargo growth were the US (1,214t), Spain (1,070t) and China (966t).

Heathrow CEO John Holland-Kaye said:

“Heathrow is off to a flying start, with record passenger numbers and cargo volumes and the start of our public consultation on the third runway.  Heathrow expansion will provide the global trading routes to super-charge Britain’s economy as we leave the EU.”

Heathrow has now launched one of the largest public planning consultations in the country’s history – the next milestone in the airport’s plans for expansion. The 10-week consultation offers the public the opportunity to shape the airport’s plans, enabling Heathrow to deliver the benefits of expansion while the keeping commitments made to local communities.

Heathrow remains the UK’s busiest port by value with over £100bn of goods travelling through the airport each year.

father christmas

Heathrow at Christmas

Heathrow has released new data revealing the wide array and surprising volumes of seasonal exports that fly in the bellyhold of planes in the months leading up to Christmas.  

Over 143 million kilograms of Christmas cargo is expected to fly via Heathrow to the world in the month leading up to December 25th, a record to date.

New data reveals a sharp spike in exports of seasonal essentials including Christmas lights, calendars, fish, lobster, and meat.

As the biggest port in the UK by value, Heathrow plays a crucial role in delivering the essential ingredients of Christmas celebrations to British homes and homes all over the world.  The airport’s data from November and December 2016 shows a clear spike in the volume of certain Christmas staples coming into the airport and out to non-EU destinations, including:

Christmas lighting sets – 27,467 kg (up from an average of 7,203 kg/month from January – October)

Frozen lobster – 443,146 kg (up from an average of 163,312 kg/month from January – October)

Calendars – 31,316 kg (up from an average of 3,382 kg/month from January – October)

Dried flowers, including for decorations –  310,677 kg (up from an average of 109,796 kg/month from January – October)

Salmon was the most popular export to non-EU destinations overall by weight in November and December 2016, with 6,070,000 kg of fish (equivalent to approximately 480 New London Routemaster Buses) recorded as flying through.    Exports of books were the second most popular commodity – with a recorded 4,834,000 kg going through last year (or approximately 382 New London Routemaster buses).

Heathrow’s data also reveals the top 5 destinations these exports are flying to outside the EU – showing the majority of long-haul exports are destined for American markets:

•United States (15.31 million kilograms)

•China (6.20 million kilograms)

•UAE (3.77 million kilograms)

•Australia (3.36 million kilograms)

•Hong Kong (2.77 million kilograms)

To highlight the wide array of exports flying out of its gates, Heathrow has today launched a “12 Exporters of Christmas” social media campaign.   Each day in the lead up to Christmas, Heathrow will highlight individual stories of SMEs up and down the country that rely on the airport to export British Christmas essentials including tea, jams and biscuits across the world.

In total, Heathrow has seen a record 290,340,803 kilograms of exports flying through from January to October to non-EU destinations this year – an 8.5% increase from the same period last year. These exports are worth an astounding £39.62 billion. Heathrow’s role as a trading hub will grow as expansion takes place, with cargo capacity set to double with the addition of a third runway.

Nick Platts, Head of Cargo at Heathrow Airport said: “Heathrow is at its busiest time at Christmas – and this year, we not only expect record numbers of passengers to fly through, but also a record amount of cargo to be flown in the holds under their feet.   Santa may still have the claim on the most deliveries on Christmas Eve, but for the months before it, Heathrow is doing its bit to export our British Christmas across the world.”

Source:

Heathrow media centre – All figures – unless indicated – exclude EU27 and Switzerland. Sources of figures: UK Tradeinfo, Seabury Group, Heathrow Analysis and Heathrow Monthly Traffic Figures

Heathrow terminal 6

Heathrow terminal 6 in jeopardy

It has been decided that plans for a 6th terminal will be halted to keep costs down whilst the 3rd runway is being built.  

Heathrow published its half yearly report last month, which made no mention of the proposed plans.  Instead it stated that further investment in terminals 2 and 5 will go ahead instead, which allows the work to be done over a longer period of time to keep the costs under control. Whilst keeping costs under control, this also means that passengers will not face an increase in air fares despite the building of the 3rd runway.

When terminal 6 was submitted for public consultation it discussed the loss of up to 700 homes in the area, and was scheduled to be built by 2020.

According to the report, over 30% of the UK’s non-EU exports by value pass through Heathrow today. In the six months ended 30 June 2017, Heathrow’s cargo volumes increased 9.1% to 0.82 million tonnes, one of the strongest periods in the last 5 years in terms of year on year performance, with notable increases on North America and the Middle East.

John Holland-Kaye, Chief Executive Officer of Heathrow, said: “Heathrow’s strong start to 2017 is a boon for Britain…more British trade is flying high on new trading links and our expansion plans are on track. The Government set us the challenge to expand Britain’s hub while keeping airport charges close to current levels. Working with airlines, we are making good progress to meet this challenge whilst delivering all our local commitments and the global connections our country needs.”

Earlier this month it was announced that MPs will now not vote on Heathrow’s proposed expansion until 2018, with a final policy statement on airport capacity in the South East being delayed until next year.