GULFPORT-BILOXI INTERNATIONAL AIRPORT

After suffering devastating damage in the wake of Hurricane Katrina, the Gulfport-Biloxi International Airport is making a strong comeback with brand new infrastructure and enhancements in the terminal catering to the comfort of travelling passengers. “We lost a lot of terminal function. We lost all of our general aviation, we lost our cargo facility, our rental car facility and we took a lot of damage on the air field,” says Bruce Frallic, A.A.E., the airport’s Executive Director.

Established in 1949, the airport is very balanced in terms of services they provide. It is a commercial service airport that provides scheduled airline service with about seven major airlines. They have very strong general aviation presence, with primarily corporate and business aviation activity. The Air National Guard, a tenant of the airport, provides a strong military presence as a Combat Readiness Training Center.

SUPPLY CHAIN

The airport has been building relationships for ten years in Central America, South America and Mexico. Their focus is on Latin America northbound and southbound, which is the airport’s niche because the Port of Gulfport is the top trader to that same region in the Gulf of Mexico.

“We collaborate very closely with our port on everything, which really brings a multimodal dimension to the airport and the port,” says Frallic. “Our port is the number one fresh fruit port in the Gulf and the number three container port in the Gulf.”

The airport’s focus on the air cargo side is on perishables northbound from Latin America. The southbound is focused more on the electronics, textiles, chemicals and medical related equipment as well as supplies. “We have a very strong private sector in the area of perishables,” Frallic adds. “In fact, we have the largest distributor in the southeast. The name of the company is Adams Gulf Coast Produce that has eight distribution centers in the southeast, but they’re also tied to 60 other distribution centers nationally.”

More recently, Gulfport-Biloxi International signed a Sisterhood Agreement with Tocumen International Airport in Panama City, Panama. Also, the Port of Gulfport signed a Memorandum of Understanding with the Panama Canal Authority. As a result, both the airport and the port are tied inextricably to the transportation systems of the country of Panama. Through this agreement, they share information, technology, personnel, training, marketing, research, education and also most importantly, prospect development.

“A lot of goods go by both ocean and by air,” says Frallic. “The airport’s facilities are supporting the port so we don’t have to have duplication of facilities. We assist the port by being able to build up containers off port.”

Moreover, steamship lines that come and go from the port also utilize surplus airport land for their container make-up and storage. That’s a very significant project tying the airport and port together and also building that relationship in Panama in anticipation of the completion of the Panama Canal.

CAPITAL PROJECTS

Having to withstand eight solid hours of sustained 150 MPH winds, ground zero of Hurricane Katrina was in very close proximity to Gulfport-Biloxi International Airport, which endured an extraordinary amount of damage. “We’ve lifted ourselves up and we have since rebuilt everything at the airport, everything is new,” Frallic expresses.

The airport has invested $287 million in the last five years. Of that, $140 million was public funding from federal and state grants. $147 million is private investment from the private sector. “That says a lot about the area and opportunity for business growth and development that the private sector would actually invest more money than the public sector was able to invest,” says Frallic.

Some of the main projects include a new $50 million terminal, which was a complete expansion on all four sides. Their new cargo facility weighing in at $22 million, two brand new hotels the airport didn’t have on its premises prior to Hurricane Katrina; those are valued at $52 million. They have a very nice parking garage at the terminal complex that’s invested on behalf of Republic Parking for $20 million. They built a new general aviation area for $34 million. They have a new air traffic control tower for $30 million, as well as new hangars for $10 million that should be completed by the first quarter of next year. They have rebuilt a new rental car service facility because that was completely destroyed by the storm weighing in at $22 million. All those projects add up to $250 million.

“We have a new fixed based operator called Million Air,” Frallic adds. “Those are the people in general aviation that handle corporate and business aviation. Their facility is under construction now for $10 million, they will open in December.”

A BRAND NEW CARGO FACILITY

Constructed by the Roy Anderson Corporation and designed by Gresham Smith and Partners, the airport’s brand new air cargo facility is second to none in the nation. With 40,000 sq ft of space, including 20,000 sq ft of chiller and 20,000 sq ft of dry cargo area, it brings elements that no one else has.

“We have a ‘green’ fumigation system,” Frallic explains. “It’s a complete recovery of the methyl bromide gas, which is used in the quarantine treatment.”

The building also includes a humidification system to maintain certain levels of moisture in the air, and air scrubbers that remove certain gases from the air that are detrimental to perishable products. “We also have a state-of-the-art security system and in 2011, we’re going to install an irradiator for quarantine treatment, as well as an x-ray system for products.”

The new cargo area has on site customs and boarder protection including PPQ, which is Plant, Protection and Quarantine, and APHIS, which is the Animal Plant Health Inspection Service. The facility works both air and ocean containers due to the fact they are so close to the port and because a lot of products move by air and ocean.

The new facility cost $22 million, including the building, the ramp and the taxiway system that can handle two 747-400 aircraft with all the equipment necessary.

“We have tax-free fuel for all international flights, so airlines can save somewhere around 35 cents per gallon,” Frallic adds. The operator of the facility is Gulf Coast International Cargo, they operate a distribution center, a cross dock operation, a pick and pack activity and they also work ocean as well as air container station. Finally, the facility is in Foreign Trade Zone 92, which adds many more benefits as far as international trade is concerned.

FUTURE

The airport anticipates growth in terms of passengers by 2-5 percent in the next few years, depending on what happens with the national economy. “Our local economy is strong, in spite of all the things that have happened,” says Frallic. “In five years in terms of cargo, we’re going to be a real player. In terms of military activity with landings and take offs, we see that continuing to grow here because our base is a training base for the Air National Guard and reserves.”

According to Frallic, the real area of growth is going to be in general aviation and the corporate and business aviation area. “We lost everything in general aviation through Katrina, so it’s been a long haul to get where we are,” says Frallic.

The airport’s new company, Million Air, is expected to stimulate 20 to 25 percent growth in general aviation and corporate and business aviation over the next five years. Along with that, aircraft arriving at the airport will be able to clear customs and the other agencies within a matter of minutes at a new general aviation Federal Inspection Station. “The fact the airport offers tax-free fuel for international flights outbound will result in a lot of people locking in on us. They want to depart from with the cheap fuel and arrive to with the fastest customs and border protection services,” Frallic concludes. “That’s going to be a real shining star for Gulfport-Biloxi International Airport.”