Sunday, June 29, 2008

Chapter 1.2 Summary: Cargo Airports are a bad investment

CHAPTER 1
PROPOSED AIR CARGO AIRPORT MARKET ANALYSIS

1.1 INTRODUCTION




"This study’s sponsors"

THATS ME THATS ME, IM A TAX PAYER


1.2 THE AIR CARGO INDUSTRY: CONDITION

They wrote...


"As detailed in the forecasts, the more mature US market no longer produces growth rates comparable to those of burgeoning markets. These disparities have implications for the US market in that investment – both in aircraft and in facilities – is more likely to chase high-growth markets."

What forecasts... is Hazleton in a high-growth market?
Paragraph winner... Not Hazleton




"The slowing US air cargo industry is not only relative (to faster-growing economies) but also indicative of internal forces. With UPS and FedEx as the two largest trucking companies in the US, the forces most responsible for air cargo growth in previous decades have been instrumental in diverting traditional air cargo shipments to trucks since 2000."


That sounds bad for Hazleton. Where is their source? I like there citation style aka THERE ARE NONE
Paragraph winner... Not Hazleton

OOoooo I found their source:



"1 The Pennsylvania Air Cargo Study completed by Wilbur Smith Associates for the Pennsylvania Department of Transportation and the more recent Tri-County Cargo Airport Feasibility Study prepared for Luzerne County by the LPA Group in February 2005."

The study they are evaluating.... awesome.




"Meanwhile, US passenger carriers conceded huge blocks of domestic market share,
reducing capacity through eliminating frequencies and transitioning to regional
jets. In addition, the US Postal Service prioritized trucking (reducing rates so
greatly legacy carriers have opted out of contract renewals) and offered service
contracts leveraging lift from FedEx and other all-cargo carriers."
I think their getting their information from there local UPS guy, seriously I love the fact that they refuse to cite their sources. This paragraph is also making the cargo airport look bad.
Paragraph winner... Not Hazleton


"According to the FAA, market share of belly carriers for domestic shipments
fell from 41% to 29% between 2000 and 2006. Cargo ton-miles for passenger
carriers dropped 26.9% for belly carriers, while rising for all cargo carriers
by 22%. Market share was merely transferred rather than growing the industry.
Short of an all out security ban on belly cargo, industry observers question
whether any further erosion of belly carriers’ domestic market share is even
possible."

So skipping ahead, I promised not to, they forget the Bibliography. How can you forget the Bibliography.. maybe they left it on Broad Street. Anyhow, you would think they could put in something good about Hazleton, like they have toy airplanes for sale at Walmart.

Paragraph winner... Not Hazleton


Trans-Atlantic and trans-Pacific volumes - thought ‘safe’ due to inherent
protection from trucking as a substitute – also have become vulnerable to modal
diversions. Traditionally growing faster (often at amultiple) than world trade,
the International Air Transport Association (IATA) projects that trade grew 7.5%
in 2007, while globally air cargo by only 4.0%. Seaborne freight grew more than
twice as much. Especially with unprecedented fuel prices reflected in ‘landed
costs’ of shipments, buyers are increasingly willing to trade time for cost in
favoring slower ocean shipping.
Yay, they talk about cheap Chinese goods. Sounds like they like to send them to places with cheap costs... stupid ocean shipping... you spoil everything.
On a side note what is "amultiple" is it something more than one?
Paragraph winner... Hazleton :) and any place that has a port :(


Skipping the next 2 paragraphs. Awesome job putting facts before telling us the point.

"All this consolidation has rendered much bigger but far fewer prospects for airports and their communities. Among carriers, telling evidence of a ‘market correction’ is that so much capacity has been excised – not only the Emery and much of the BAX fleet but US all-cargo airline Kitty Hawk which recently folded – yet lift availability has generally remained sufficient. Consolidation has also led to an inventory of redundant facilities, including not only former hubs of DHL, Emery and Kitty Hawk in the Ohio Valley but also “spoke” stations at secondary airports across the country."


:( Hazleton
Paragraph winner... A wandering writer and obviously not Hazleton

WINNER: NOT HAZLETON

LOSER: Whoever paid for this study... oh thats right, it was me.




The first 10 pages... don't bother reading

Page 1-7
Title Page, Table of Contents, ect.

8
BACKGROUND
Summary... People DEMAND to know why you want to spend 1.6 billion on a cargo airport.

8-9
PROJECT DESCRIPTION
Summary...
The development of the Hazleton Cargo Airport has been proposed by Gladstone Partners, LP (Developer).


9-10
REPORT OVERVIEW
That would be cheating, you have to read the report first.

Wednesday, June 11, 2008

Cargo Airport Study link

The report for the cargo airport study is found here:



http://lbfc.legis.state.pa.us/