Dallas Fort Worth International Airport: The Premier Gateway for Latin America-Asia Trade

10.19.2016

Agenda

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• DFW Cargo/Logistics Growth Strategy

• Where we are at and what comes next

• DFW Freighter Recruitment Strategy:

• Connecting South America and Mexico

• Commercial Development Land Plan- John Brookby

DFW’s air cargo growth strategy was developed in alignment with the way that freight is transported

Shipper Recipient

Trucking

Company

Ground

Handler Airline Ground

Handler

Trucking

Company

Freight forwarder: brokers transportation on

behalf of shipper or recipient, using the

assets of various providers

Integrator: deals directly with shipper or

recipient, and operates the entire

transportation chain using its own assets

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Cargo activity 55.1%

Other airport activity 44.1%

Cargo and logistics matter to DFW and North Texas

Source: The Perryman Group, Catalyst!! The Role of Dallas/Fort Worth International Airport in the North Central Texas Regiona l Economy, September 2015

Annual DFW Airport Economic Impact (total economic impact = US$37 billion)

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DFW as a cargo gateway today

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Figures in Metric Tons

Growth Rate equals Compound Annual Growth Rate for 2007 - 2014

Source: Airports Council International–North America, traffic figures reported by member airports for the years noted.

Dallas Fort Worth 2014 Total: 634,997

2007-2014: (37,738)

CAGR: -.8%

San Francisco 2014 Total: 400,614

2007-2014: (86,240)

CAGR: -2.8%

Houston 2014 Total: 461,492

2007-2014: 50,104

CAGR: 1.7%

Atlanta 2014 Total: 601,249

2007-2014: (54,008)

CAGR: -1.2%

Chicago 2014 Total: 1,377,664

2007-2014: 52,845

CAGR: 0.6%

New York City 2014 Total: 1,943,819

2007-2014: (391,869)

CAGR: -2.6%

Los Angeles 2014 Total: 1,816,269

2007-2014: 185,188

CAGR: 1.6% Miami

2014 Total: 1,998,779

2007-2014: 192,009

CAGR: 1.5%

Key findings of the 2015 DFW Air Cargo Study

• Shift out-dated focus from adding lift/capacity (“supply”) to stimulating freight flows (“demand”)

• Marketing focus: forwarders, shippers and supply chain managers

• “Total landed cost,” or “TLC,” is the new language of DFW Cargo Business Development

• Airline capacity will follow shifting freight flows

• Growth opportunities

• Protect and grow Mexico/Asia air-truck gateway

• Leverage American’s expansion in Asia and South America

• Capture more Texas exports (DFW – 29%, IAH – 29%)

• Exploit latent demand for cold chain/perishables logistics services at DFW

• East Coast-West Coast air-truck-air transit freight that is carried past DFW

• Create a perishables gateway for South American transit freight to Asia

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2016 Progress

• 2016 DFW Perishables Facility Feasibility Study

• DFW is a viable competitor for perishables imports, exports, and transit freight

• Handling facilities and logistics services are lacking

• This infrastructure deficiency can be remedied by the end of 2017

• Increased South American freighter capacity is the key to growth for DFW

• TLC Triage Model

• DFW is the only airport in the world that uses this tool/analytical perspective

• Allows DFW Cargo Business Development to compare DFW’s viability as a gateway with great specificity

• by commodity type

• by flow (imports, exports, transit)

• by mode (air-air, air-truck, truck-air)

• by trade lane

• Permits DFW to focus resources

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Source: Forward Air Service Schedules, U.S. Census Bureau, LogCapStrat DFW Air Trade Portfolio Model

Strategic Initiative 1: Increase market share in DFW catchment area

Dallas Fort Worth (DFW) and Houston Bush (IAH) air cargo catchment areas

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Strategic Initiative 2: Protect and grow DFW’s position of strength in key Asian markets

Source: LogCapStrat DFW Air Trade Portfolio Model

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Strategic Initiative 3: Strengthen DFW’s position in the Mexico trans-border trade lane

10 Source: LogCapStrat Analysis

Illustration of the U.S. - Mexico supply chain and intermodal freight flows

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Strategic Initiative 4: Establish DFW as a viable transit gateway between Latin America and Asia

Source: LogCapStrat DFW Air Trade Portfolio Model

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DFW Opportunity: Grow the Latin America-Asia air freight market

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Source: LogCapStrat DFW Air Trade Portfolio Model

TLC triage model snapshot

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Source: LogCapStrat DFW Air Trade Portfolio Model

Inter-regional Transit Perishables Air Freight

Trade

Annual Air Freight

(Metric Tons)

Total Transportation Cost

(USD per Kilogram) by U.S. Gateway 2015 2021(f) CAGR DFW IAH LAX MIA ORD

Chile - China 3,773 8,863 18.6% $2.95 $3.90 $3.07 $4.48 $3.01

Chile - Taiwan 1,955 3,243 10.7% $2.89 $4.32 $3.45 $3.27 $3.45

Chile - Japan 1,268 1,589 4.6% $3.13 $4.11 $3.52 $3.24 $3.57

Chile - South Korea 783 1,296 10.6% $3.12 $4.36 $3.34 $3.42 $3.18

Brazil - China 447 1,028 18.1% $2.40 $2.59 $2.52 $4.15 $2.59

Brazil - Japan 289 420 7.7% $2.59 $2.80 $2.95 $2.91 $3.15

Brazil - Malaysia 850 394 -14.3% $3.12 $3.13 $3.30 $3.30 $3.28

Brazil - Vietnam 44 367 53.1% $2.73 $3.15 $3.19 $2.88 $4.02

Brazil - Indonesia 244 339 6.8% $2.58 $3.73 $3.39 $3.09 $3.31

Brazil - Singapore 269 319 3.5% $2.52 $3.30 $3.30 $3.25 $3.07

Chile - Thailand 220 266 3.9% $3.12 $4.27 $3.75 $3.82 $3.45

Brazil - Thailand 235 245 0.8% $2.58 $2.97 $3.19 $3.49 $3.03

Brazil - India 136 227 10.8% $3.06 $3.81 $4.83 $3.63 $3.75

Brazil - New Zealand 60 107 12.4% $4.30 $6.59 $5.81 $5.48 $5.71

Chile - Malaysia 40 101 20.5% $3.67 $4.45 $3.87 $3.63 $3.70

Brazil - South Korea 71 84 3.5% $2.56 $3.04 $2.77 $3.09 $2.76

Chile - Singapore 75 74 -0.3% $3.06 $4.62 $3.85 $3.58 $3.51

Chile - India 8 38 34.9% $3.61 $5.11 $5.39 $3.96 $4.17

Chile - Indonesia 37 23 -9.2% $3.13 $5.05 $3.94 $3.42 $3.75

Brazil - Taiwan 66 20 -21.0% $2.34 $3.01 $2.89 $2.94 $3.03

Chile - New Zealand 14 9 -9.5% $4.84 $7.90 $6.37 $5.81 $6.13

DFW advantage trade lanes 10,884 19,052 11.8%

DFW advantage share 32.8% 42.2%

Total export air freight 33,225 45,158 6.3%

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DFW is the lowest-cost U.S. transit gateway for freight from Chile and Brazil destined for Asia

Source: Logistics Capital Strategy, Market Demand Model

Lowest total landed cost

U.S. gateway airport

Cargo – Next steps

• Infrastructure

• DFW Air Cargo Committee will develop a cold chain/perishables facility plan to be implemented by the end of 2017

• Possible Airport investment in facilities

• Business development/ market outreach

• DFW-advantage trade lanes

• Exports: (1) California to Europe; (2) Mexico to Europe; and (3) Mexico to Asia

• Imports: (1) Mexico to U.S.; (2) Chile to U.S.; and (3) Brazil to U.S.

• Transit: (1) Chile to Asia; and (2) Brazil to Asia

• Identify decision-makers who control these trade lanes

• Shippers

• Freight forwarders

• Increase freighter capacity to/from South America and Mexico

• Achieve DFW’s strategic goal for cargo (2020)

• Grow Asia-Latin America cargo flows via DFW at a 50% faster rate than our competition

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How do we begin to reach these decision-makers?

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Forwarders Shippers/Growers Airlines

Dallas Fort Worth International Airport: The Premier Gateway for Latin America-Asia Trade

10.19.2016

Dallas Fort Worth International Airport Commercial Development Overview

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10.19.16

John Brookby Assistant Vice President Commercial Development

Development Types

• Cargo

• Warehouse

• Distribution

• Office

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DFW’s land use plan provides a framework and

development strategy for the commercial uses of

Airport property.

• The land use plan is updated every 5 years and

refreshed as needed

• This market–based plan was developed in a

collaborative process with input from owner & host

cities, DFW stakeholders, external stakeholders,

and the Airlines

DFW Land Use Plan

• Mixed Use

• Retail

• Hospitality

• Industrial

Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

North Destination

District

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• Over 2,100 acres developed

• Over 21,000,000 SF of buildings

• Built at 3rd party expense

Commercial Development Overview

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Airport Connected Development

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INTERNATIONAL

COMMERCE PARK

COPPELL INDUSTRIAL

SOUTHGATE PLAZA

HOSPITALITY/REC

NORTHWEST LOGISTICS

FOUNDER’S PLAZA

CENTER

WALNUT HILL

INDUSTRIAL

INTERSTATE 635 &

ROYAL LANE

Development Districts

WEST GRAPEVINE

INDUSTRIAL

BELTLINE STATION

NORTH DESTINATION

DISTRICT

AMERICAN AIRLINES CAMPUS

BEAR CREEK BUSINESS PARK

PASSPORT BUSINESS

PARK

WEST/NORTHEAST AIR

CARGO

Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

North Destination

District

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

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10

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3

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Bear Creek and Passport Park Business Parks Site Plans

Commercial Development Website: www.dfwairport.com/landhere Translated into 80 Languages

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Thank You

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10.19.16

John Brookby Assistant Vice President Commercial Development

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International Commerce Park International Commerce

• Approximately 363 net acres

• $5.3 million in annual ground rent

• 19 buildings totaling 5,731,200 sq/ft

• $329 million in tenant investments

• Approximately 3,880 jobs

Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

North Destination

District

27

Coppell Industrial Coppell Industrial

• Approximately 160 net acres

• Completely leased as of

January 2015

• 3 buildings providing

approximately 2.8 million sq/ft

• Annual revenue $2.3 million

Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

North Destination

District

28

Southgate Plaza Southgate Plaza

• 32 acre mixed-use

development

• PFIC owned 137 room Hyatt

Place

• Home to 154,000 sq/ft DFW

Headquarters building

• Planned 6,000 sq/ft United

States Postal Service facility

Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

North Destination

District

29

Hospitality and Recreation Hospitality

• Hyatt Regency and Bear Creek

Golf Course - $3.6 million annual

revenue to DFW

• PFIC owned - 298 Room Grand

Hyatt

• PFIC owned 137 Room Hyatt

Place

Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

North Destination

District

30

Northwest Logistics Northwest Logistics

• Approximately 200 acres

• 15 acres of freeway

commercial

• Approximately 1.6 million

sq/ft of facilities currently

in place

Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

North Destination

District

31

Founder’s Plaza Center Founder’s Plaza Center

• Approximately 60 acres adjacent

to the Founders’ Plaza

Observation Area

• North America's largest Infiniti

Car Dealership

Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

North Destination

District

32

Walnut Hill Industrial Walnut Hill Industrial

• Approximately 250 gross acres

for development

• Access to SH161, SH183 and

IH 121/114

• 440,764 sq/ft Dallas Airmotive

Facility currently under

construction

Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

North Destination

District

33

Interstate 635 and Royal Lane Interstate 635 and Royal Lane

• Approximately 45 acre site

• The 12 acres on the north side of

Interstate Highway 635 envisioned

for hotel and restaurant/retail

growth

• 33 acres on the south side of

Interstate Highway 635 are

projected for retail/restaurant and

flex-office development

Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

North Destination

District

34

West Grapevine Industrial West Grapevine Industrial

• No tax sharing

agreement in place

for this Development

District

Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

North Destination

District

35

Beltline Station Beltline Station

• Approximately 100 acre

site

• Beltline Station opened in

2012 with access to

DART’s Orange Line

Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

North Destination

District

North Destination District

36

• No tax sharing agreement in

place for this Development

District

• Approximately 936 gross acres

Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

North Destination

District

37

American Airlines Campus American Airlines Campus

• Approximately 268 acres

• AA Campus will house

approximately 5,000

employees

• Maintains AA’s

Headquarters in Fort Worth Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

North Destination

District

38

Bear Creek Business Park Bear Creek Business Park

• Approx. 1,700 gross acres

• Phase I – 321 net acres

• Office - 27 acres

• Hotel/Retail – 37 acres

• Office/Flex - 257

Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

North Destination

District

39

Passport Business Park Passport Business Park

• Approximately 600 acres

• Dalfen Americas facilities in

the lease pipeline (approx.

125 acres)

• Dalfen Americas proposing

approximately 1.9 million

sq/ft of warehouse facilities

Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

North Destination

District

40

West/Northeast Air Cargo West/Northeast Air Cargo

• Approximately 387 acres

• West Air Cargo – 303 acres

• East Air Cargo – 84 acres

• Approximately 4.1 million sq/ft of

facilities

• West Air Cargo – 3.2 million sq/ft

• East Air Cargo – 900,000 sq/ft

Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

North Destination

District

41

NW Cargo Redevelopment NW Cargo Redevelopment Opportunity

Bear Creek Business Park

Passport Park Business Park

American Airlines Campus

Bear Creek Golf Course Walnut Hill Industrial

West Air

Cargo

West Grapevine

Industrial

NE Air

Cargo

Northwest

Logistics

Founder’s Plaza

International Commerce Park

635 and Royal Lane

Coppell Industrial

Southgate Plaza

Beltline Station

North Destination

District