Mich. airport taps into Amazon potential, local growth

Capital Region International Airport (LAN) in Lansing, Mich., is increasing its cargo ramp space by 63%, an additional 400 square feet of space in anticipation of growing regional airfreight needs. The new $13.8 million project is intended to ease supply chain congestion and support growing manufacturing activity in the Lansing area, LAN President and Chief Executive Nicole Noll-Williams told Air Cargo World . Amazon, for one, is opening a 1 million-square-foot facility a few miles away from LAN which could lead to cargo growth. And General Motors (GM) in January announced plans to invest around $7 billion into converting a factory to produce electric pickup trucks as well as a new battery cell plant. Express operator UPS currently utilizes a majority of LAN’s current ramp space, so that “63% increase allows opportunity for potential growth with UPS [and] their partners,” Noll-Williams said. LAN intends to break ground on its project in Q2 2023. [caption id="attachment_57131592" align="alignright" width="524"] Current cargo ramp aerial photo. Photo/LAN[/caption] “When we look at cargo and cargo development, we of course want to focus on the broader region and how can we help support manufacturing and growth throughout this entire region,” she said. “This has truly been a collaborative project that we’re able to kick off, and we’re working on the design aspect today for the cargo ramp, allowing space for crosstalk facilities for future growth.” Further growth opportunities There are also opportunities for international cargo clearing, Noll-Williams added. “There’s opportunities to help support international products that are coming into the United States today,” she said. “How can we help improve that, because we can clear [international] products within a matter of hours in comparison to products sitting on the coast or another major airport that takes days for customers to be able to clear because of the backlog.” The airport is also in talks with other cargo carriers about growth opportunities at LAN, Noll-Williams added. “We worked with the Lansing Economic Area Partners on a spec building design for warehouse space that is [a] 160,000-square-foot building that could be broken up based off what manufacturing or warehouse space is needed,” she said. LAN has additional land available for development and is currently working on an EDA grant for funding to bring in utilities within a roughly 50-acre plot. Drone deliveries are also of interest for LAN as the airport looks to update its master plan, initially completed in 2006, Noll-Williams said. “We can look at all the land that we have, both commercial and aeronautical use, and [see] what can we do to make sure we’re preparing for the future of vertical lift and implementing the pieces that are necessary,” she said. Funding Around 90% of the project will be primarily funded through the federal government, with the remaining 10% split evenly between state and local funding, including the Airport Improvement Program (AIP), Noll-Williams said. Specifically, LAN received $8.183 million in federal funding in March for the both the cargo ramp and future cargo operations at the airport. The Capital Region Airport Authority, which owns and operates both LAN and general aviation airport Mason Jewett Field (TEW), opened a Federal Inspection station after becoming an international port of entry in 2009 with the intention of clearing both passengers and international cargo. LAN’s cargo operations include bonded warehouse facilities and a container freight station, as well as a Foreign Trade Zone (FTZ) designation that covers an eight-county region. LAN has seen a roughly 10% annual increase in cargo since 2019, and currently handles 63 million pounds — or roughly 28,578 tonnes — of cargo annually, according to Noll-Williams. The airport operates roughly 60,000 square feet of warehouse space, with room for expansion. To support UPS operations, MD-11s, A300s and feeder carriers from Martinaire Aviation and Ameriflight operate to and from LAN. The Michigan airport is just the latest on a list of smaller U.S. airports looking into regional cargo growth as larger airports continue to face severe congestion issues . For instance, Nashville International Airport (BNA) intends to expand its operational footprint with a new 70,000-square-foot facility set to open in mid-2027. Greenville-Spartanburg International Airport (GSP)’s 50,000-square-foot warehouse expansion is also set to open this month.

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