News

26-November 2024

Gateway to Growth – interview with Air Cargo Week

Full version of interview published in Air Cargo Week, 25th November 2024.

1.How has the airfreight environment in Europe and, in particular, the UK played out throughout 2024?

            As a result of a combination of factors including geopolitical events in the Gulf region, changes to Customs regulations for Chinese exporters into the US market and continued very strong demand for e-commerce product, Europe (and the UK especially) have continued to drive solid growth in airfreight demand for this sector.

            Bournemouth Airport is becoming well known as a key e-commerce gateway and with this continued strength in the market, we anticipate further near-term expansion of our cargo handling operation ‘Cargo First’ consistent with our objective to become the UK’s premier airport hub for e-commerce goods.

            2. What are the key components of a successful global logistics strategy in today’s rapidly changing market?

            We’ve always maintained that being both cost and time efficient with all our processes are the two key factors that our customers continuously look for.  These are the same critical factors that every other component of any logistics supply chain must also deliver, and we are well aware of the need for us to play our part in that too.

            Of course, we are fortunate that Bournemouth Airport is also really well located to access key market areas in the South and Midlands of the UK plus the fact that the well-known congestion of the major hub airports means that our simple and efficient Cargo First handling offer has been extremely well received by our clients.

            3. How has Cargo First/Bournemouth tapped into a need within the market to secure its status as a growing globally connected airfreight hub?

            We’ve been lucky to have a flexible, reliable and ambitious based carrier in the form of European Cargo, with a full UK Air Operator Certificate - therefore able to easily offer global routings from Bournemouth.  But luck is only part of it – we’ve worked extremely hard with stakeholders throughout logistics chains to make known our capabilities.

            We believe we’ve now proven Bournemouth’s capabilities and it is great to see that we’re receiving good recognition around the world – people who a year or so ago didn’t even know who or where we were are now actively reaching out to us to explore opportunities.

            By keeping focused on what the customer really needs and making sure we deliver exactly that, we feel we’ve really begun to turn the tide in terms of the mindset that cargo into the UK can only be funnelled via the big hub airports.

            4. How has the addition of Airbus A340 freighters at the hub in recent months helped to enhance operations and meet growing capacity demands?

            The Airbus A340-600F is a truly spectacular aircraft – with range capability to reach all corners of the globe from the UK and offering a generous 76-tonne payload, it fulfils a great role in the large cargo aircraft market.

            Ready availability of the aircraft within the European Cargo fleet – with further converted units coming online within the coming months – means that there’s ample opportunity for continued growth.

            5. With e-commerce on the rise and demand for airfreight operations growing, how has this created a perfect storm to fuel Bournemouth and Cargo First's growth in recent years?

            There’s no question that Bournemouth Airport’s entry into the large-scale cargo handling market came at the right time – last year we broke into the top 10 UK airports for cargo throughput and we firmly expect to see our position in the rankings jump up several more places by the end of the current year.

            Our laser-like focus on cost and time efficiency makes a huge difference too.  But we firmly believe our success has been just as much about being in the right place as launching at the right time – at just 90 minutes from London and with great access also into the UK Midlands and beyond, we’ve been able to prove that customers can secure all the benefits of use of an uncongested airport facility and – crucially – get their product to market faster.

            6. Given the need for speedy, reliable and cost-effective services when dealing with the e-commerce and other similar segments, how has the freedom that Bournemouth enjoys, helped it to be a strong alternative gateway into the UK and Europe?

            Bournemouth has the enviable position of offering not only fast ground transport access to the core market areas within the UK but is also well located for access into Europe.

            Our location also offers the additional benefits of being close enough to London to provide a real alternative to the big hub airports, but being outside the London system means that we enjoy both substantial freedom of growth from an aviation traffic rights perspective (avoiding the frequency limitations that constrain growth of many services into the London area) plus the benefits of uncongested airspace and highway network.

            Our location in the South of the country means that most long-haul operators will realise a material cost benefit from shorter flight times (in addition to the savings from reduced air and ground holding times).

            7. On that note, how has Bournemouth embraced multimodal operations to ensure strong connectivity and a smooth supply chain for customers?

            It’s all about getting the product to the customer as soon as possible. 

            Initially we saw the majority of import goods processed through Bournemouth and then transiting onwards to agents in the London area.  While we appreciate that London will always be a key centre for the UK freight market, what we’ve seen recently is a move to simplify supply chains within the UK.

            A greater proportion of imports are now clearing Customs at Bournemouth and being trucked directly to the end distribution centre of the final mile delivery agent, and we expect to see a further simplification of the process chain in future with the establishment of distribution centres directly at the airport itself for final mile operations within the South of the UK. With over one million square feet of potential warehousing development space landside and airside, Bournemouth is well placed to facilitate that.

            We are, quite frankly, unashamedly mimicking successful and well-established operations at cargo airports elsewhere in Europe, but we strongly feel that the substantial property play that Bournemouth Airport is able to offer is just as important as the integration of multimodal operations to ensure a smooth and efficient supply chain environment.

            8. The Asia to UK trade route has proved a profitable option for Bournemouth Airport and Cargo First. Beyond Asia, what are you seeing as the key potential trade lanes that Bournemouth and Cargo First could profit from?

            Asia has, and continues to be a strong player, but we do indeed see opportunities in other areas of the world.

            While e-commerce handling continues to be our core operation – for which we foresee future product source markets in areas such as the Indian subcontinent and South America – we also anticipate a broadening of our capabilities to handle additional time-sensitive goods such as perishables which will open up interest in areas such as Africa.

            9. With freighter activity comes a need for strong, on-the-ground infrastructure. How has Bournemouth and Cargo First invested in handling, warehousing and security operations to support its logistics operations?

            We have applied a continual investment approach to our cargo operation since inception.  This has included ground equipment, additional warehouse capacity and other fixed infrastructure such as aircraft handling aprons – and we expect to make further announcements on this front in the very near future.

            As much as infrastructure is important, it is essential to remember that it is the operational team that makes to whole thing work.  Our biggest investment overall, in terms of time, cost and training has been in our cargo staff who deliver service in line with our ‘faster airfreight’ promise on a daily basis.

            10. How do you integrate sustainability into your global logistics strategies, and what are the benefits of doing so?  

            We view sustainability as an obligation which features in every aspect of the way we undertake our business.  In line with our commitment to reach net zero carbon emissions by 2040 we’re ramping up delivery of numerous strategies to meet this target.  This includes increasing availability of SAF as part of our in-house aviation fuel offering, construction of an on-site solar farm which will deliver all our on-site power needs and enhanced stewardship of the protected natural heathland which forms part of the wider estate within the airport’s ownership.

            These strategies don’t just benefit us, our clients and the environment – they are responsibilities that we take extremely seriously and are an unquestionable requirement from all partners in the global logistics chains in which we are a part.

            11. What innovative practices or technologies have you adopted to improve the efficiency of your international logistics operations?

            Cargo First has been successful in providing bespoke solutions for each key client that operates at Bournemouth Airport.  We’ve worked tirelessly hand-in-hand with each customer to integrate their technologies as required (or offer up solutions of our own) to ensure efficiency.

            All this being said, we believe that innovation remains only part of the story – continued focus on delivering simple processes which avoid all the complications and inherent delays associated with handovers between multiple agents and complex procedures experienced at the big hub airports remains a core objective.  This is particularly important as we continue to grow.

            12. What are the next areas of focus for Bournemouth and Cargo First, as your operations continue to grow?

            Our location with quick, easy access to London added to our simple and efficient on-site processing (remembering that Cargo First offers a one-stop-shop service from touchdown to truck) means that we believe there to be substantial additional opportunities to grow our business.

            Having proven our capabilities for handline time-sensitive e-commerce goods, there is clear opportunity for application of this into other airfreight products including everything from express mail to perishables.

            While the desire to challenge conventions and to prove ourselves as a truly viable alternative continues, we absolutely have the capacity, motivation and determination to succeed.

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