Guidebook for Air Cargo Facility Planning and Development (2015) / Chapter Skim
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Pages 82-92
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From page 82... ...
82 8.1 Financial Planning for Cargo Facilities Financial planning is an important component of air cargo facility planning. A sound financial plan addresses both the capital funding of the facilities and their operation.
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From page 83... ...
Air Cargo Facility Planning -- Funding Strategies 83 express carrier decides to construct a new air cargo facility and vacate its existing facility, the airport has the opportunity to renovate or revamp the vacated facility to provide capacity for smaller airline air cargo operators, non-cargo users, or ground handling companies. Assuming that the title to that facility has reverted to the airport, the airport could subdivide the facility into several bays, each with truck dock doors and access to the airport operations area.
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From page 84... ...
84 Guidebook for Air Cargo Facility Planning and Development not exclusively used by a single user may be eligible for grants either from the FAA or from local economic development agencies. Of all the alternative funding sources, grants represent the ideal source of funding.
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From page 85... ...
Air Cargo Facility Planning -- Funding Strategies 85 environmental analysis required, and will secure the necessary permits to construct the facility. The difference is that the developer will ensure that the funding is in place and pay for the design, environmental studies, permitting fees, and construction.
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From page 86... ...
86 Guidebook for Air Cargo Facility Planning and Development development, a pro forma statement captures the various sources of income that can be derived from the development; the expense associated with operating the facility, including debt service, if applicable; and the construction soft and hard costs. When all of the revenue and costs have been determined, the airport planners can calculate the net present value (NPV)
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From page 87... ...
Air Cargo Facility Planning -- Funding Strategies 87 of aircraft parking apron, 174,240 ft2 of truck access, and vehicle parking using average construction costs. In the comments column, a description of each line is included along with whether the cost item is applicable in this example.
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From page 88... ...
88 Guidebook for Air Cargo Facility Planning and Development In this example, the NPV using a 9% discount factor is $820,559, which indicates that the sum of the discounted revenues is greater than the sum of the discounted costs and the investment is deemed to be financially viable. The IRR for this example is 10%, which represents a reasonable return on investment.
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From page 89... ...
Air Cargo Facility Planning -- Funding Strategies 89 fuels. State and federal agencies tax this fuel to provide the funds needed to make the NAS work.
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From page 90... ...
90 Guidebook for Air Cargo Facility Planning and Development 8.3.1.2 State/Local Government Grants Many state and local governments provide funds for airport improvements that may fund air cargo development. Each airport will need to research and coordinate with local and state government agencies to see which grants can be applied to airport cargo projects.
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From page 91... ...
Air Cargo Facility Planning -- Funding Strategies 91 The airport sponsor collects ground rent for the duration of a long-term lease (usually 20 or more years)
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From page 92... ...
92 Guidebook for Air Cargo Facility Planning and Development the right. What is best for each airport and stakeholder in the process depends on a wide variety of data points and preferences, which are known as the Four Cs and are shown in Figure 8-2.
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