1. The Aerotropolis Development Strategy
Global Airport Leaders Forum
Dubai, UAE
May 12, 2014
The Aerotropolis Development Strategy

2. What is an Aerotropolis?
An aerotropolis can be defined as a …
“a multimodal freight and passenger transportation complex which supports efficient, cost-effective, sustainable development in a defined region of economic significance centered around a major airport.”
United States Congress H.R.658: Aerotropolis Act of 2011
But it is more than a transport complex: It is a strategy...
That is, an aerotropolis is a constellation of physical, institutional, economic and policy interventions which upgrade airport infrastructure and facilities, reduce connecting ground-based transport times and costs, and expand air route connectivity to (1) improve operational efficiencies of the airport and metropolitan region and (2) leverage aviation-enabled trade in goods and services.

3. The Aerotropolis Model
Primary objective: Enhancing airport, business, and regional competitiveness through improved multi-modal airport surface transportation access and planned, coordinated aviation-linked commercial development, making the airport and its surrounding areas more economically efficient, attractive, and sustainable.
Key value proposition: Offers businesses located near or with good transport access to the airport with speedy connectivity to their suppliers, customers, and enterprise partners, nationally and worldwide.
Contains the full set of cargo, logistics, and commercial facilities that support airlines and aviation-linked businesses as well as air travelers.
An Airport City developed on and immediately around the airport serves as the multimodal, multi-functional commercial core of the Aerotropolis anchoring aviation-enabled trade in goods and services, driving them throughout the broader airport region.
Represents the Fifth Wave

4. Airports: Creating The Fifth Wave of Transit-Oriented Development
First Wave: Seaports
Second Wave: River & Canal-Based Development
Third Wave: Railroads
Fourth Wave: Highways
Fifth Wave: Airports
Century
21st
20th
19th
18th
17th
Transportation Infrastructure Has Always Shaped Business Location, Commercial Activity, and Urban Development

5. Basic Drivers of the FIFTH WAVE
Large jet aircraft (along with IT advances)
Globalization (producers & consumers)
Speed (time-based competition)
Agility (customization & flexible response)
Connectivity (worldwide enterprise networks)
Perishability (pharma, fish, flowers, fashions)
Tourism (especially international)
See: John D. Kasarda and Greg Lindsay Aerotropolis: The Way We’ll Live Next (2011)

6. Tourist Arrivals by World Region
Source: Tourism 2020 Vision, World Tourism Organization,

7. Global Air Transport,
Source: Airlines for America (A4A)

8. The Coming Two Decades
Between 2013 and 2032, world-wide commercial passenger traffic will likely increase from 5.4 billion to approximately 14 billion (nearly 40 million pax/day) Asia/Middle East fastest growing
In the same period (2013 to 2032), world air cargo traffic is expected to nearly triple (Asia/Middle East also fastest growing)
Between 2013 to 2032 commercial aircraft in service will rise from 20,310 to 41,240
During this period ( ) 35,280 new commercial aircraft will come into service with a new market value of US$4.8 trillion
Source: IATA & Airports Council International (2013, Boeing Current Market Outlook )

9. The 21st Century Economy is becoming an Aviation-Based Economy
Air logistics and the new economy are inextricably interwoven
Tuna, orchids, medications, iPhones, aerospace components all go by air
Over one-third of the value of world trade already moves by air (versus just 1% by weight); even higher for business services exports and tourism
Almost all high-tech global supply chains and business services exports are connected by aviation (the physical Internet)
Source: John D. Kasarda and Greg Lindsay, Aerotropolis: The Way We’ll Live Next (2011)
Proprietary and Confidential

10. Global Supply Chain – Apple iPhone 5

11. Aviation’s Global Physical Internet
(59,036 Routes in 2012)
©2009 Jpatokal, Creative Commons, Wikimedia.org
Source: Airline Route Mapper and UNC Kenan Institute

12. Airport Roles in the Physical Internet
Routers of aviation’s Physical Internet
Interfaces of the global meeting the local in people, product, and advanced service movements
Business magnets
Regional economic catalysts

13. Creating Airport Cities and the greater Aerotropolis
As the Routers of the Physical Internet, Airports Have Become Business Magnets and Regional Economic Catalysts by
Providing accessibility, speed and agility to global supply chains and perishables
Connecting a region’s businesses to their customers and enterprise partners worldwide
Attracting tourists and serving commercial needs of millions of air passengers and airport-area visitors annually
Creating Airport Cities and the greater Aerotropolis

14. Airport Cities and The Aerotropolis
New Airport-Centered Urban Forms Are Evolving
Airport Cities and The Aerotropolis

15. Rise of the Airport City
Airports today: much more than aviation infrastructures
They are multimodal, multifunctional enterprises generating considerable commercial development within and well beyond their boundaries
All commercial functions of a modern metropolitan center are locating on and immediately around major airport sites – transforming them from “city airports” to “airport cities”

16. The Airport City Airside
Shopping mall concepts merged into passenger terminals
Retail (including streetscapes & upscale boutiques)
Restaurants (increasingly higher-end and themed)
Leisure (spas, fitness, recreation, cinemas, etc…)
Culture (museums, regional art, musicians, prayer)
Logistics and Air Cargo
Landside
Hotels and entertainment
Office & retail complexes
Convention & exhibition centers
Free trade zones & SEZ’s
Time-sensitive goods processing

17. Airport City’s Business Impact1
Daily consumer population at major airports is larger than that of many mid-sized cities, and with higher incomes 2
Numerous airports achieve greater percentage of revenues from non-aeronautical sources than aeronautical sources 3
Rapid commercial development around many major airports makes them leading urban growth generators, as airport areas become significant employment, shopping, trading and business destinations in their own right 4
Airport area develops a “brand image” attracting even non-aviation linked businesses such as factory outlets & big box retail

18. The Rise of the Aerotropolis
Spines, nodes, and clusters of aviation-linked business and residential complexes are forming along airport transportation corridors up to 30 km from some airports with significant economic impact measured up to 90 km.
Office buildings and technology parks
Logistics and distribution centers
Industrial estates and light manufacturing
Retail centers and wholesale merchandise marts
Information and communications technology complexes
Bioscience and medical facilities
Higher education campuses
Hotel, convention, tourism and entertainment complexes
Large mixed-use residential developments
Airport “Edge Cities” (e.g., Amsterdam, Zuidas; Las Colinas, Texas; New Songdo IBD)
Just as you have Central Cities and the greater Metropolis, you now have Airport Cities and the greater Aerotropolis.

19. Aerotropolis Schematic with Airport City Core (Compressed Version)

20. Airport City/Aerotropolis Spatial Development Paths
From the airport out
From the city out
Along the main access corridor
Washington Dulles Airport
Washington DC

21. Illustrations of Airport City & Aerotropolis Commercial Components

22. Civic Plaza: Indianapolis Terminal (21st Century Central Square)

23. Hotel & Meeting: Dallas-Ft
Hotel & Meeting: Dallas-Ft. Worth Grand Hyatt (21st Century Virtual Corporate Headquarters)

24. Frankfurt Airport’s “The Squaire” (21st Century Multimodal Office Hub)
Airrail Center is now “The Squaire” – photo courtesy of

25. Helsinki Airport Technopolis

26. Paris Charles de Gaulle (Roissypole: CDG’s Airport City)

27. Amsterdam Schiphol Airport City

28. Taiwan Taoyuan Airport Farglory FTZ Complex

29. Non-Aviation Based Airport Retail (Factory Outlets and Big Boxes)
Brisbane Airport
Athens International Airport

30. Washington Dulles Aerotropolis Corridor (Strings & Clusters of ICT & Consulting Firms)

31. Dulles Access Highway Corridor Looking West from Fairfax County Parkway (Washington Dulles International Airport in background at top)
1962
2007
Photo courtesy of Metropolitan Washington Airports Authority
© 2007 Metropolitan Washington Airports Authority, Photo by Eric Taylor

32. New Songdo, Airport Edge City Near Incheon International Airport

33. (Major Planned Aerotropolis)
Dubai World Central
(Major Planned Aerotropolis)

34. Airport City, in Brief Summary
An Airport City is most intensively used portion of an Aerotropolis, heavily leveraged by the passenger and cargo terminals of an airport
A physical manifestation of the “airport economy” including:
Real estate development for travelers (Terminal retail inside and outside the security zone)
Real estate development for those providing air transport services (Airlines, freight forwarders, …)
Real estate development for those who are intensive users of air transport services (Hotels, offices, logistics parks, …)
Real estate development for those not intensively involved in aviation (Big-box retail, factory outlets)
Airport cities are increasingly planned
Are architecturally designed and themed
Governed to maximize benefit to users, investors, and region
Supported by an appropriate business model to be profitable

35. The Aerotropolis, in Brief Summary
Spatial and Functional: An airport city core surrounded by an extended airport-integrated economic region made up of transportation and commercial infrastructure which facilitates aviation-enabled trade in goods and services, including:
Goods shipped by air
Goods shipped by surface or sea but whose sale is facilitated by air travel
Services:
Tourism
Business services which depend on air travel
Connectivity = Competitiveness:
The Aerotropolis efficiently connects its businesses to markets near and far
Improved surface transportation connects firms more efficiently to airport area and broader regional markets
Expanded air routes provide quick and efficient connectivity to international markets
The fastest, best connected places will win in the 21st century.
This is the Aerotropolis strategy.

36. Planning for a Competitive Future
The 21st Century Airport, Airport City, and Aerotropolis
Leveraging Speed and Connectivity for Commercial Advantage