The Rise of the Aerotropolis

A new model in urban planning called aerotropolis is shaping the minds of leaders in countries around the world. Against the backdrop of current trends of disjointed, schizophrenic plans, cities with hopes of being centers of the growing global economy are embracing the aerotropolis, introduced by a University of North Carolina professor, named John Kasarda. And whereas, the United States has arguably the single, operating model in function, other cities have not accepted the model as the way to build a 21^st century city.

In short, an aerotropolis is a city which has made the calculated decision to base its infrastructure and systems with its airport as its nexus. Over the last thirty years, the global Gross Domestic Product or GDP has grown 154% and the value of the world trade has increased 355%. The value of air cargo has exploded, increasing 1,395%. Today over 40% of the total economic value of all goods and services produced in the world, barely comprising 1% of the weight is shipped via air. Of which, 50% are US exports valued at over $554 billion. Today, individual companies no longer compete against each other. Supply chains compete with other networks and systems.

With this increase in cargo shipping from continent to continent, a new model of urban planning and logistics has been needed to forge the continuation of that development. FedEx has been the forerunner in this effort establishing branch operations called Global Trade Networks and Supply Chain Services to handle the outsourced needs of companies who need backoffice support in handling their trade globally. With this growth has come the need for increased wisdom on the part of urban planners to partner with the companies in their cities to buildout a subsystem within their cities that will allocate space around their airports to facilitate the global distribution that is taking place. That buildout is the foundation of the aerotropolis.

Airports are the operating systems, using a computer term, underlying a network that connects the world and trade. With that operating system, connections or hubs must be stationed for transport to be effective. Aerotropolis' have decided that being a hub is their goal so they have build their systems in such a way to embrace the dynamics of trade, transport, and transportation to and from the airport. The ecosystem of an airport includes warehouses, trucking firms, factories, and offices nestled within a fifteen miles radius of the airport.

The aerotropolis represents the logic of globalization made flesh in the form of cities. Hong Kong, China, and India are banking on aerotropolis as they make multi-billion dollar investments in swamplands to build billion dollar airports and cities around the airports to serve the trade of their nations. The Guangzhou New Baiyua Airport in the Huandu District of Guangzou, China is such a new city built around the aerotropolis model. With an investment hovering around fifteen billion dollars, the goal is for the city to have a population of over 100,000 while the airport will reach a capacity that dwarfs anything an airport in the US will ever experience.

One of Guangzhou's goals is to become China's version of Memphis. In fact, Professor Kasarda confesses that Memphis is the only working aerotropolis in the world. In Memphis, one in four jobs is directly or indirectly dependent on the Memphis International Airport. With FedEx headquartered in Memphis, it has become the cargo leader in the world with 3.6 million tons of cargo passing through Memphis International Airport annually. Hong Kong's premiere airport is second with annual freight nearing 3.43 million tons. Memphis has a larger percentage of businesses linked to the airport than any other metro city in the country. The airport has an economic engine disproportionate to the population of the city. In 2006, the airport has an economic impact of over $20 billion.

The impact on businesses is in Memphis is immeasurable as they benefit continually from having FedEx just around the corner. Ecommerce will drive the next generation of growth globally. It facilitates airports and cities partnering together to build facilities that are built around the air express hub. One of the keys is the cut off time. What Memphis provides is allowing a business to take orders as late as ten or eleven at night and still deliver the next day.

With FedEx, Memphis International Airport has two hundred planes that land, bringing packages and overnight letters that pass through its primary nexus before being reloaded and shipped out. What is important for companies in Memphis and its metro area are the impact having FedEx in its backyard has on shipping deadlines. On the East Coast, shipments must be picked up before 9pm in order to guarantee next day delivery. On the West Coast that time drives back to 4pm. But if you are in Memphis, that deadline is midnight to 1am.

Other firms can do it but at premium prices. Price and quality were critical factors in the past. Today, speed is the optimum issue. FedEx allows not only for the speed but also the reduction in inventory as well as the value-added compact important to many companies. Logistics can no longer be seen as a cost to be minimized but a value added serviced to be optimized.

Outside of Memphis, Detroit is pushing to become an aerotropolis. With 25,000 acres of woodlands situated between its primary and secondary airports, the city hopes to build a suburb that will have a population of 100,000 making it the second aerotropolis in the country. The pressing issue Professor Kasarda employs is that cities must encourage smart growth around airports instead of spontaneous, undisciplined growth.

One thing is certain; those cities that brace themselves for the global economies will position themselves to be leaders over the next century. The aerotropolis is a professor's response to the needs of a changing world. With only Memphis and Detroit as aerotropolis' the US must buy-in like our international friends and make the urban changes necessary to reposition ourselves. The aerotropolis is not the wave of the future. It is the wave of today.