Alabama looks more to the skies as it moves cargo

Alabama's three largest airports are adding infrastructure and incentives to land more cargo business

Air cargo planes move goods from Alabama to the world.

The three largest Alabama airports are aiming for blue skies with their international air cargo traffic. From spiffing up infrastructure to adding incentive programs for new carriers and routes, the airports are looking to land more business in this sector.

Huntsville International Airport

Huntsville International Airport – HSV – is an entity of the Port of Huntsville along with other cargo operations.

The port currently supports international nonstop cargo flights to and from Europe, South America and Asia, says Barbie Peek, chief business development officer for the port. Arriving and departing cargo flights total 20 per week, with four of these going to and from international destinations, she says.

“Our region has attracted many advanced manufacturing companies, and they rely on these HSV global connections to move their products. Industries depending on rapid air cargo service from Huntsville primarily include pharmaceuticals — thanks to our ample cold storage facilities — as well as automotive parts, medical equipment, oil and gas equipment, high-value cargo, electronics and e-commerce goods,” Peek explains.

The Port of Huntsville is currently served by five air cargo carriers — Atlas Air, Cargolux, FedEx, LATAM and UPS.

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Expansion plans are ongoing. “We are always working to attract new routes and carriers for air cargo by meeting with our airline partners, logistics companies and freight forwarders,” Peek says. “One of the key ingredients is putting all the amenities in place to serve our customers. This includes infrastructure, U.S. Customs & Border Protection, access to Foreign Trade Zone No. 83 and other components to make the Port of Huntsville a one-stop shop for business and industry.”

The port’s current air service incentive program aims to attract additional cargo carriers and/or new routes, Peek notes. It also includes details on increasing passenger traffic.

As noted on the Port of Huntsville website, the incentive program, which began in May 2024, runs through June 30, 2025. The perks include waiving landing and ramp fees and awarding increased frequency if cargo carriers significantly increase landing weights. Marketing support is also provided.

The Port of Huntsville contributes $1.8 billion to the Alabama economy, according to a study of 2019 data commissioned by the Aviation Council of Alabama. This includes more than $272 million, or 38.5%, of the state’s aviation jobs payroll, the most of any airport in Alabama.

Mobile International Airport

In October 2024, the airport — BFM for short — celebrated the placement of the final steel beam on a new terminal. Construction for the terminal and a new parking garage is expected to be complete in early 2026, at which point all commercial air traffic from Mobile Regional Airport will relocate to BFM.

“Mobile Regional’s relocation to BFM marks a significant development for Mobile and Baldwin counties,” says Andy Wilson, executive director of the Mobile Airport Authority. “We expect this will create additional air cargo opportunities. Cargo forwarders and consolidators currently serving Mobile Regional Airport will transition to support scheduled carriers at BFM.”

Airport officials expect that passenger carriers — Delta, American and United — will add belly cargo — goods carried in the lower deck of a passenger plane.

Moreover, “many of the existing air cargo partners operating in the area will benefit from any future expansion at BFM,” Wilson says, noting that improvements to the complex allow increased flexibility and efficiency for all cargo operations.

FedEx currently operates daily scheduled cargo flights between its Memphis hub and BFM, with international cargo arriving or departing BFM being processed through Memphis.

In addition, BFM accommodates direct international air cargo operations supporting the Airbus Final Assembly Line (FAL), with shipments originating from Mirabel, Canada, and Toulouse, France.

Like Huntsville, BFM is working to attract new international cargo carriers, starting with freight forwarders and logistics companies, which serve as intermediaries between cargo carriers and local businesses, Wilson says. Carriers are showing an increased interest in BFM, but he notes that they usually approach freight forwarders first before making direct inquiries.

“Increased international air cargo traffic would further strengthen Mobile’s multimodal transportation network, giving local businesses faster, more efficient access to international markets,” Wilson says. That’s a particular benefit to industries that rely on timely shipments of parts, supplies and perishables, he says.

In addition, “the added capability would create economic ripple effects, such as job creation and growth opportunities for local suppliers and service providers,” he says.

As BFM moves forward with its new terminal, Mobile Regional Airport will remain open and continue to support tenants like Airbus Space and Defense and the U.S. Coast Guard Training Facility.  

Kim Hunt, vice president of communications, Birmingham Airport Authority.

Birmingham-Shuttlesworth International Airport

In June 2024, the Birmingham airport, BHM, celebrated a new 53,000-square-foot air cargo building. The building has helped launch a new line of business for the airport.

In February 2023, the Birmingham Airport Authority announced a new partnership with global logistics company Kuehne+Nagel. Weekly international cargo flights began in April 2023 with imports from Stuttgart, Germany. Industries served include automotive, pharmaceutical and aerospace.

Until the new facility was ready, the flights operated out of a temporary location at BHM. Kuehne+Nagel moved in immediately following the facility’s completion in June. K+N leases the entire facility from the Birmingham Airport Authority and is the only logistics company currently moving international cargo at BHM, says Kim Hunt, vice president of communications, Birmingham Airport Authority.

Atlas Air operates the flights for K+N, Hunt says.

In late September 2024, K+N also began exporting cargo from Birmingham to Amsterdam Airport Schiphol in the Netherlands, Hunt notes. This continues now with a weekly flight. The targeted export sectors are aerospace, chemicals, automotive and electronics.

This new international traffic has somewhat impacted job creation in Birmingham. When K+N began to operate in Birmingham, it hired AGI — Alliance Ground International — to handle the cargo, Hunt says.

“The benefits of building this international cargo business are many, particularly when it comes to making central Alabama more attractive to new businesses that are looking for a place to locate but need quick access to international markets,” Hunt explains. “A manufacturer can really zero in on managing the manufacturing operation and their inventory when they have access to efficient imports and exports. Local and state economies will benefit as our supply chain becomes more competitive,” she says.

The BHM business development team is also assessing the market for sectors “ripe for development,” Hunt says. “As a secondary market, the process of getting cargo into our new facility and out to customers can be much quicker than at larger, more congested airports. We are centrally located with great access to major highways that make it very convenient and more efficient to move cargo. We are convinced this will continue to be a selling point for Birmingham as we continue to grow this line of business.”

Nancy R. Randall is a Tuscaloosa-based freelance contributor to Business Alabama.

This article appears in the December 2024 issue of Business Alabama.

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