Called one of the best PP3s in Canada, Hamilton International Airport has grown from a potential failure to one of the biggest airports in the country
Written by Gabe Perna & Produced by Stephen An
To understand how impressive the John C. Munro Hamilton International Airport is now, it’s important to realize how far it’s come. By all accounts, 13 years ago the Hamilton International Airport was a losing proposition destined for failure.
Back in the 1980s, the onetime military training base was converted into a commercial airport to provide an alternative to Toronto’s Pearson International. Yet, despite good intentions, the property then owned by the City of Hamilton bled at a rate of $1 million a year.
In 1996, the city selected local businessman and builder Tony Battaglia of WestPark Developments, along with the operational expertise of the Vancouver Airport Authority, Tradeport International Corporation Ltd., to manage and operate the airport. Currently, the John C. Munro Hamilton International Airport is the largest intermodal air cargo airport in Canada and the fastest growing. The success comes from a remarkable public/private partnership.
“The partnership has been a big win for everyone. It’s a win for the city because they don’t have that million dollar cost. We pay them rent. Between ourselves and our partners, we’ve invested $160 million into the airport to make it profitable. At the end of the lease term, the airport gets turned over to the city and they continue to be the owner. We’ve turned a losing airport into a profitable one, created infrastructure and a larger tax base while paying rent,” explains Richard Koroscil, President and CEO of the Hamilton International Airport. “It’s a win for everyone. It’s been held up as one of the best PP3s (public/private partnerships) in Canada.”
RECENT EXPANSION
Nothing exemplifies Hamilton International’s progress more than its rapid expansion program over the past few years. As mentioned, from the time Tradeport International purchased the rights to operate the airport, the company and its partners have poured $160 million into expansion projects.
This has included the development of several large hangars and sort facilities, expansion of its inbound customs facility to accommodate growth in international flights, its outbound departures lounge for larger aircrafts, an upgrade of the food and beverage facilities in the airport and a larger duty-free shop. The airport has grown its cargo business
as well.
“A big change in this last year we’ve made has been the addition of the wide body cargo aircraft by our partners Cargo Jet and Purolator. The significance of that is we now have long-haul capability – Transatlantic/Transpacific – which we’ve never had before. With that capability, Cargo Jet partnered with LOT Polish Airlines to begin our first scheduled international air cargo route into Poland from Hamilton. That started this November,”
says Koroscil.
The airport’s cargo side also brought on DHL as a new tenant. Along with its cargo partners, the airport has six operators dealing strictly in business aircraft. It also plans on opening a brand new fuel consortium that will decrease fuel costs and increase fuel availability significantly from a half a day’s fuel on site to now more than a week’s worth.
GROWTH POTENTIAL
Koroscil and others at Hamilton International envision the commercial development of the lands surrounding the airport. Currently the lands surrounding the airport are open spaced and agro-based. The airport has worked with the City of Hamilton to implement an airport influence area to prevent residential encroachment.
In years to come, the commercial growth could mean the development of several logistics and distribution facilities in this designated area. Major corporations and companies could co-locate logistics facilities directly near the airport to enhance Hamilton’s intermodal transportation network.
“The long-term strategy for the community is to take advantage of the transportation infrastructure that’s there today. We want to enhance it into a freight hub, creating logistics and solution capabilities and turn it into an economic advantage for someone looking to build new distribution facilities. They’d look here because all of that exists including a low cost property with highly skilled people. If I’m going to invest into a big logistics/distribution facility, the idea is to make Hamilton the choice,” says Koroscil.
A SUPERIOR AIRPORT
Even though it’s technically a secondary airport in a major residential area, there is nothing inferior about Hamilton International. In a few areas, the John C. Munro is actually superior to the Pearson. For instance, the airport has quicker aircraft arrivals and departures due to shorter taxi times, a lower operating cost structure and no delays in courier deliveries.
It also has the braintrust of a private enterprise behind it, a luxury many airports do not possess. With this type of advantage, the airport has grown at a substantial rate with the potential for more set in place.
“As a private operator, we’re strictly focused on the bottom line and being competitive. The results speak for themselves. The airport has been growing and expanding for years now. It’s been successful and has the opportunity to be the sixth largest in the country with the volume, passengers and freight, because it sits in such a large market,” concludes Koroscil.
FACTS AT A GLANCE
COMPANY NAME: John C. Munro Hamilton International Airport
PRESIDENT & CEO: Richard Koroscil
OPERATIONS: International commercial airport
EST.: 1940 as a military training field
EMPLOYEES: 50 in administration
www.flyhi.ca
View Digital Corporate Profile of HamiltonAirport in Supplychain Digital January 2010