Edmonton International Airport sees cargo as region-builder
By
Mack Male
Fresh off a number of awards and despite facing global headwinds, the Edmonton International Airport (YEG) is looking forward to continued growth for its cargo business in 2023, even though it isn't a major contributor to the bottom line.
"Cargo doesn't buy coffees, park cars, or spend money at duty-free, so it doesn't have the same revenue impact," explained Mammen Tharakan, director of e-commerce, cargo, aviation real estate, and business development at YEG. "But our raison d'être is to drive economic prosperity for the region, and air cargo is a major contributor to that mission."
Air cargo is usually not a revenue driver for airports in general, but it does help to diversify revenue, Tharakan explained. "There's a much larger multiplier effect with cargo than with passengers," he said. "Having this robust cargo ecosystem supports and attracts the stakeholders who do business at the airport."
In 2021, YEG moved 48,000 tonnes of cargo — equivalent to between 11 million and 22 million typical e-commerce packages — which is a 4.5% increase over 2020 and marks the third straight year of growth. This year, the airport is on track to surpass those figures, recording 38,000 tonnes as of the end of September, ahead of the typically very busy fourth quarter. "I'm optimistic that we'll see double-digit growth for the year," Tharakan said.
That growth is being driven by e-commerce and has been "for quite some time," Tharakan said. About 80% of all cross-border e-commerce moves by air because it is the only way to meet the aggressive delivery timelines that customers have come to expect. "That shift from the 'palletization' to the 'parcelization' of cargo does provide new avenues of business," he added.
That's important as the airport grapples with economic and geopolitical uncertainty, high fuel prices, and continued supply chain issues. "We're managing the situation very dynamically," Tharakan said.
Despite the "burdensome" cost of investing in cargo infrastructure, it remains a key part of the airport's strategy, Tharakan said.
"It's critical for us because of the positive impacts to the community," he said.