transportation accessibility & commercial development
TRANSCRIPT
THE SUV ARNABHUMI AEROTROPOLIS:
Airport-Driven Development
Pruentod by
John D. Kasarda, DirectorThe Kenan Institute of Private Enterprise
The Kenan-Flagler Business SchoolUniversity of North Carolina -Chapel Hill
June 2002
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Transportation Accessibility& Commercial Development
Changes in Transportation Infrastructure Have AlwaysShaped Business Location & Urban Development
First Wave: Seaports
Second Wave: River and Canal-Based Development
Third Wave: Railroads
Fourth Wave: Highways
Fifth Wave: Airports
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.Large, High-Speed Jet Airplanes
.Advanced Telecommunications
.Globalization (Sourcing and Sales)
.New Supply-Chain Management Systems(Networks as Competitive Units)
.Time-Based Competition
.Production Flexibility & MassCustomization
.Perishability (Economic as well as Physical)
.Survival of the Fastest and Most Agile~:~~John D. Kasarda, Kenan Institute of Private Enterp~ ."o.O"": ..:"
.42% of the Value of World Trade Already Goes by Air (vs. Under
2% by Weight)
.65% of All Air Cargo in the U.S. is Express (Nearly 20%
Average Annual Growth, Past 20 Years)
.World Air Cargo Traffic is Expected to Triple Over the Next 18
years (International Air Express 3 Times Faster)
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United
States Total Exports,by Mode, 1990-2000
(in millions US$)
TOTAL VALUE
AIR VALUE
VESSEL VALUE
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.Higher value to weight product ratios
Just-in-time manufacturing and delivery
.Global sourcing and sales
.Customization (built to order)
Today's customers can't or won't wait
Time is money for business travelers
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John D. Kasarda, Kenan Institute of Private Ente~_~
Spatial Impacts of Air LogisticsAirport-Linked Business Clusters
.Freight Forwarding and Third-Party Logistics
.E-Commerce Fulfillment Centers
.Transformation (Kitting, Subassembly, Sequencing) and Flow-Through
Facilities
.Just-in- Time Manufacturing
.Perishables and Cold-Chain Centers
3 High-Technology Industries
3 Business Services and Regional Headquarters Offices
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The Aerotropolis: EmergingUrban Form
.Distinct Clusters and Spines of Aviation-Linked Business Radiating upto 20 Kilometers Outward from Airport
.Aerolanes (Dedicated Expressways), Aerotrains (Dedicated Fastrail),Intennodal Interfaces
.New Metric for Deternrining Land- Value is Time and Cost of MovingPeople and Goods to and from the Airport (not Distance)
.The Three" A's" (Accessibility, Accessibility, Accessibility) Replacethe Three "L ' s" (Location. Location. Location) as the Most Important
Commercial Real Estate Organizing Principle
.Cluster Development, Wide Lanes and Fast Movements are Optimal(Aerotropolis Form Follows Function)
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--.Dallas -Ft. Worth (Texas)
Amsterdam (Schiphol)
.Paris, Roissy (CDG)
.Campinas, Brazil (outer Sao Paulo)
.Hong Kong's Lantau Island
.Seoul, Korea
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Amsterdam, Netherlands.Airport City Forms at Schiphol (Airport as Destination).From City AiIpart to Airport City
.Shopping Arcades.Internet Cafes.Theme Restaurants.Office Buildings (Inside Fence)
.Emst& Young.RR Donnelly
.Solomon Brothers International
.Unilever
.Heineken Export Group.2 Five Star Hotels
.Cargo City.52,000 Wo~ers Inside the AiIpart Fence Daily
~~~.John D. Ka~~~ Kenan Institute of Private Enterp~
Amsterdam-Schiphol Airport City -
Aerotropolis SynergiesINSIDE FENCE OUTSIDE FENCE
Aiport City Broader Aerotropo/isI v_- >hIf~mSy-
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H...1sSb~p;..g Arcades
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John D. Kasarda, Kenan Institute of Private Enterprise
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Aviation, Digitization, Globalization, and Time-Based Competition areConverging
Air Logistics is Creating New Aviation Linked Urban Fonns (Aerotropolis)
Aitports Will Drive 211t-CentUly Land Values as Much as-Highways in the 20th Century
-Railroads in the 19th Century
-Seaports in the 18th Century
.Remember the Three "A's"
.Look Outside the Fence for Greatest Opportunities
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John D. Kasard~ Kenan Institute of Private Enterprise
Email follow-up to:
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John D. Kasarda, Kenan Institute of Priva~~