Ottawa invests in construction of air cargo facility

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This article was published 19/12/2023 (684 days ago), so information in it may no longer be current.

It’s been 12 years since the opening of the new terminal at the Winnipeg Richardson International Airport but development of the airport campus has continued apace.

In 2020 while airports around the world were suffering some of the most dramatic effects of the pandemic with air travel and airport revenues dramatically curtailed, the Winnipeg Airports Authority quietly opened its $27 million, 96,000-square-foot ground services building.

On Tuesday the federal government announced that it would be investing $19.4 million — along with the $30.4 million announced in 2019 — toward the construction of a new 120,000-square-foot air cargo facility.

That project — to be built on the site of the former Air Canada cargo facility at the end of Sargent Avenue — will significantly increase the airport’s capacity when it comes to handling increasing volumes and sensitivity of cargo.

Nick Hays, the WAA’s CEO, said that right now the airport is “fundamentally at capacity” when it comes to handling cargo, which makes up about five per cent of the airport’s annual revenue.

But Hays said a return on investment is definitely forecasted for the $120 million investment in the new facility that also includes construction of associated apron and taxiway infrastructure some of which has already taken place.

“It is about new capacity and new capability,” said Hays. “It will unlock new opportunities for exporters here in Manitoba. It will unlock growth and enable the Winnipeg airport to capture market share that is going elsewhere.”

He said there have been plenty of exampled of exporters from Manitoba who are shipping agricultural products or pharmaceuticals who have had to re-route products elsewhere because of capacity constraints in Winnipeg.

“The construction of additional cold storage capacity, for example, will enable high value exports like chilled pork or pharmaceutical products to be shipped easier and more effectively with the help of the investment we’re talking about,” Hays said.

The additional federal support, paid out through the National Trade Corridors Fund, was necessary because of the inflationary pressures that have caused construction costs to increase dramatically.

While there has been on-going advocacy for more federal government support for airports across the country since airports were privatized in the early 90s, airport officials talk about how those relationships have been warming.

During the pandemic, Ottawa waived ground rents for the Winnipeg airport and all the other large airports in the country

Dan Vandal, the minister of northern affairs and the MP for St. Boniface, acknowledged that the pandemic “messed everything up” for the airports.

But he said, “Our sense of cooperation and partnership with the airports has probably never been greater.”

There is criticism from many quarters about the lack of public sector investment in critical infrastructure, but this is an example of funds being made available for a project that is seen to have the potential for a significant return as the need for logistics issues to be addressed becomes more apparent.

Hays said, “This announcement is a great example of the current relationship (between the Winnipeg airport and the federal government) that is more cooperative and willing to be supportive. It is a mutually supportive relationship.”

Vandal noted the significance of the Winnipeg airport’s need to manage northern cargo requirements all the way up to the Kivalliq region of Nunavut.

Earlier this year the Canadian Infrastructure Bank announced a $52 million investment in a $135 million re-development of the Thompson Regional Airport.

While environmental concerns about the use of air cargo will always be under scrutiny because of the carbon footprint created by jet fuel — experts estimate the aviation industry is responsible for about five per cent of global warming — air cargo accounts for about 35 per cent of world trade by value.

Hays said construction of the new air cargo facility is scheduled to begin in April and should create about 110 jobs. He said discussions are ongoing with companies who would potentially lease space in what is to be a multi-tenant facility. He said the WAA itself may also use some of the space.

martin.cash@freepress.mb.ca