Having styled itself ‘America’s Aerotropolis’ since 2006 because it is the USA’s only dual cargo-and-passenger hub, the city of Memphis, Tennessee, is now pursuing an even more ambitious vision.
The Greater Memphis Chamber recognises that not only are Paris and Guangzhou the second and third largest FedEx Express cargo hubs after Memphis itself, but each city’s largest airport is also a passenger hub for a SkyTeam alliance member airline. Paris Charles de Gaulle Airport is the home of Air France-KLM, while Guangzhou Baiyun International Airport is the main base of China Southern Airlines. Memphis itself is a hub for Delta Air Lines.
Meanwhile, FedEx operates nonstop cargo flights linking its ‘super hub’ at Memphis with Paris, which is now marketing itself as ‘Aerotropolis Europe’ – and Guangzhou, which FedEx calls ‘Aerotropolis Asia’.
The chamber wants to persuade all three to link together for marketing purposes as a global triumvirate of partner hubs, which would offer companies a convenient way to expand throughout North America, Europe and Asia.
Three cities: joint marketing
John Moore, president and CEO of the Greater Memphis Chamber, says that because of their respective FedEx and SkyTeam presences, the chamber is now in serious discussions with Paris about marketing the two cities jointly as partner hubs. According to Moore, the two cities intend to sign a cooperation agreement at the Airport Cities Conference and Exhibition (ACE) in Memphis in April, which he says Paris mayor, Bertrand Delanoë, is planning to attend.
“The two cities are connected in ways unlike any other cities,” says Moore. “We feel they have the best passenger and cargo connectivity of any cities in the world.”
Talks are by no means as advanced with Guangzhou, but Moore says Greater Memphis has been making progress with Guangzhou airport and government officials with the assistance of FedEx Express. “We hope to discuss the concept further at the ACE Conference,” says Moore.
An obvious corollary to adding Guangzhou to the partner hub cooperation agreement would be for Memphis to seek passenger service by China Southern from Guangzhou. Moore confirms this would be a goal for his chamber. Air France and China Southern already operate a joint venture between Paris and Guangzhou.
‘Hub customers’
The Greater Memphis Chamber envisages what FedEx Express calls ‘hub customers”, that would market Memphis and Paris globally as partner hubs. FedEx hub customers “have very time-sensitive delivery requirements”, and so are located near a major FedEx hub, says Moore. However, they may only have facilities in one or two of the three cities. By establishing a presence in the others, they could quickly grow in major new international markets.
“We have a few companies with a presence in both Memphis and Paris, and also companies in Memphis that have not pursued major expansion in Europe,” says Moore. “We hope to interest them in expanding and offer them a clear way to do it.”
Memphis International Airport
In parallel with the Chamber’s work to develop the triple-hub strategy, Memphis International Airport is working on its own future. In 2008 the airport’s operator, the Memphis Shelby County Airport Authority (MSCAA), identified more than $500 million of airport construction work to be completed in three “Planning Activity Level” phases (called PAL 1, PAL 2 and PAL 3) over the next 16 years or more, as traffic growth dictates. The total “could well go up to $1 billion of construction” if the airport meets its growth targets, says Larry Cox, president and CEO of the MSCAA. Completion of PAL 1 planning is due for 2012 and construction of some projects is already underway.
However, Cox stresses that the airport will not begin construction on later-phase projects such as terminal expansion unless the growth in traffic demand is demonstrated.
One major project which is definitely going ahead is construction of a new, $130 million ground transportation centre to the north of the main terminal and the short-term parking immediately adjacent to it. The seven-level ground transportation centre is due to be completed within a year and it is directly connected to the main terminal by a moving walkway. It will accommodate car rental offices and parking spaces on its two lowest levels, as well as a quicker turn and wash-and-refuel area for rental cars.
Key to Memphis’ aspirations as one of three global partner hubs – and its desire to win new long-haul international service – will be expansion of the airport’s international arrivals and immigration inspection facility.
Cox says that the airport’s existing facility can effectively only accommodate passengers from one widebody and two narrowbodies at a time, or perhaps four narrowbody loads of passengers. “We want to accommodate six to eight widebodies at a time,” he says. Other construction would probably see expansion of the two arms of the U-shaped terminal to accommodate traffic growth well beyond the airport’s current 10 million passengers a year.
This issue features in Routes News 2011 Issue 2
