OST partners with China, establishes regional hub

Ostend-Bruges Airport (OST) is aiming to position itself as a regional cargo hub by attracting customers from oversaturated neighboring airports in the Benelux region in late 2021 or 2022. After signing a recent agreement with Chinese officials, the former military base hopes to establish an “Air Silk Road,” creating a link between Asia and the Benelux states. At first glance, another cargo airport in the region may seem redundant as it is already home to established cargo destinations like Amsterdam Airport Schiphol (AMS) and Liege Airport (LGG). However, OST’s central location, persistent slot capacity issues at some of the more popular cargo airports, and the upcoming logistics partnerships may make OST an attractive alternative. Though the pandemic has temporarily resolved the issue of slot shortages at airports like AMS, with passenger volumes reduced to 20% of what they once were, cargo won’t be an attractive alternative for long, according to OST Chief Executive Marcel Buelens. “It's my belief that we will go back to a situation whereby major hubs like Frankfurt, Paris, Amsterdam will get separated again with passenger activities, cargo operators and e-commerce operators,” Buelens said. At the same time, the market for air cargo continues to grow. Express companies like SF Express are looking for central hubs, a service OST will be able to offer one or two years down the line, according to Buelens. In addition to boasting plenty of capacity, OST’s central location could be the key to its future success, Buelens said. One hour from the French border and just over three hours from Paris, the airport is surrounded by uncongested highways and is accessible from the urban hub of Amsterdam and the nearby ports of Ostend and Zeebrugge. At just 80 kilometers from the France-U.K. Chunnel, OST is especially attractive to Chinese shippers who want to import in bulk, Buelens added. The pandemic has offered carriers a chance to test operations at OST. While the details of the agreement between the airport and China are not yet settled, the two have already begun to discuss plans for a joint COVID relief effort. Masks and other items are already passing through OST, according to Buelens. When a vaccine is released, potentially sometime next year, he expects OST to be a central distribution location. Airport statistics list more than 6,000 square meters of cool storage and 430 square meters of freezer storage, but companies based there are not among those listed as CEIV Pharma certified by IATA. Currently, OST can accommodate nine 747s, allowing for several daily flights. The Belgian government also recently released nearly 150,000 square meters of land on which the airport can develop further facilities, according to Buelens. Currently, OST plans to use the space as a cargo village, but plans could change to suit the needs of OST’s customers, he said. Partnerships will play a role in whether OST is able to break into the Benelux region as a major cargo hub. OST already has three handling agents — Aviapartner, Bcube and Fenair. According to Buelens, the airport recently succeeded in signing an agreement with logistics group Mukden Logistics, which is currently established at Liege Airport (LGG) and looking to expand. Talks with a variety of carriers are also underway, said Buelens. For all the airport’s advantages, at least one major roadblock stands in its way: A lack of facilities. “Our facilities date from the late ’60s and need renewal,” said Buelens. “But again, we can renew those, and we have 150,000 square meters of space where we can where we can build suited for the customer.” “We have signed an agreement with a construction-investment company. We'll discuss with possible candidates for cargo, express and e-commerce facilities,” Buelens said. “I think we have developed quite a good package for … people that want to install themselves here, want to settle down and build a central hub for the region.” OST’s new facilities will be ready in late 2021 or early 2022, Buelens estimated. In the meantime, OST is looking ahead to this year’s peak season, closing out a year that saw 300% cargo growth for the airport. “The end of last year was busy but not too busy — we still had capacity left,” said Buelens. “With COVID and much less passenger flights, I think we can at least double, maybe triple, our figures of end of last year or last winter.” “We have handling agents and potential candidates talking to the project office, constructors and financiers,” Buelens said. “So hopefully the end-of-year rush will make people decide to start planning for next year.”

OST partners with China, establishes regional hub

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