Thursday, August 16, 2018
Business

Sparked by Amazon, cargo business growing at Tampa International Airport

Tampa International Airport's cargo business is growing, thanks in large part to the online retailer, Amazon.

Seattle-based Amazon has opened two enormous distribution centers in the greater Tampa Bay area. To supply those warehouses with merchandise, Amazon is shipping goods to Tampa International Airport daily aboard a Boeing 767 cargo freighter plane.

It's a lucrative arrangement for Tampa's airport, which has seen a spike of more than 20 percent in cargo activity over the last year. The Amazon deal alone has generated more than $275,500 in revenue for the airport through fees and building rental payments, which continues to go up.

The daily flight is part of a national deal that Amazon quietly inked with Air Transport Services Group in 2015 to lease five Boeing 767 cargo planes and use them to move merchandise across the country. Tampa was one of the first regions to be a part of Amazon's air cargo delivery network. Amazon and ATSG renewed the contract last year and extended the lease to 20 cargo planes.

Business is going well enough that LGSTX Services Inc., a firm under the same parent company as Air Transport Services, wants to lease additional warehouse space from the Tampa airport.

Previous Coverage: Tampa International Airport's cargo operations busy keeping Amazon's Florida warehouses stocked

Hillsborough County Aviation Authority board members approved a proposal Thursday for LGSTX Services to take over the lease of a 7,680-square-foot cargo building from United Airlines to use for storage and the creation of pallets for packing and shipping. The lease, which extends to September 2018 and includes renewal options, will generate more than $91,000 in rent and fees annually.

In addition, board members agreed to change the language of the airport's air service incentive program to accommodate more domestic cargo freight business. The incentive program has been used mostly to lure new commercial airliners and flights to Tampa Bay, like the direct flight to Frankfurt, Germany, on Lufthansa and to Panama City, Panama on Copa Airlines. The airport waives fees and has written checks for marketing reimbursements through the program.

For cargo flights, the incentive program only allowed international carriers to participate. That changed Thursday when board members voted to revise the language to include incentives for all cargo air service.

"When we created the policy in 2011, we thought the only growth in cargo business we'd see would be from international carriers," said Chris Minner, vice president of marketing at the airport. "But that's not the case, so we'd like the program to be open to any freighter."

Other cargo companies like Atlas Air Inc., FedEx and the U.S. Postal Service are among the other cargo businesses at the airport.

Contact Justine Griffin at [email protected] or (727) 893-8467. Follow @SunBizGriffin.

Comments
SunPass users with overdraft fees can now request reimbursement

SunPass users with overdraft fees can now request reimbursement

If you’re a SunPass user and you’ve seen overdraft fees on your account, you can now ask for that money back.Florida Department Transportation spokesman Ed Seifert announced today that Florida’s Turnpike Enterprise has launched a system to process ov...
Updated: 6 hours ago

Nature’s Food Patch brings organic offerings to Dunedin

DUNEDIN — Nature’s Food Patch recently opened a new downtown location at 966 Douglas Ave. The new store will stock much of what is offered at the Clearwater location, including organic produce, grass-fed meat, a fresh juice/smoothie bar, organic and ...
Updated: 7 hours ago
The self-proclaimed Uber of lawn care is expanding in Tampa Bay

The self-proclaimed Uber of lawn care is expanding in Tampa Bay

The lawn-mowing service GreenPal, which claims to be the Uber equivalent for lawn care, is extending its service across the Tampa Bay area.GreenPal, which already serves parts of Tampa, announced homeowners in Clearwater can begin booking professiona...
Updated: 7 hours ago
This week in deals: Pub subs on sale, and the best savings at Publix, Winn-Dixie for Aug. 16-23

This week in deals: Pub subs on sale, and the best savings at Publix, Winn-Dixie for Aug. 16-23

I’m going start with it: Chicken tender Pub subs are on sale this week. It’s like a Florida holiday when Publix chicken tender subs are $6.99. Suddenly, offices across the Sunshine State are filled with the aroma of Buffalo sauce as everyone brings b...
Updated: 9 hours ago
South Tampa apartment community sold for $40 million

South Tampa apartment community sold for $40 million

TAMPA — The 276-unit Pavillions at Ballast Point apartment community in South Tampa has been sold for $40 million and will be renamed Solis at Ballast Point. The buyer, California-based Investors Management Group, said it also plans significant inte...
Updated: 9 hours ago
Tampa gets its own Bodega in Seminole Heights

Tampa gets its own Bodega in Seminole Heights

St. Petersburg eatery Bodega has built a reputation for its Latin street food and now the fast-casual concept has expanded to a second location in Seminole Heights.Its name Bodega, which means grocery in Spanish, represents the owners, George and Deb...
Updated: 9 hours ago
Gander Outdoors rebounds under new ownership

Gander Outdoors rebounds under new ownership

The Gander sign is back up at Bayport Commons on W Hillsborough Ave. The 30,000 square foot space that once housed Gander Mountain has now reopened as Gander Outdoors.Marucus Lemonis, star of CNBC’s The Profit, bought Gander Mountain assets in bankru...
Updated: 12 hours ago
Finney’s Tiger-Rock Martial Arts moves to larger space

Finney’s Tiger-Rock Martial Arts moves to larger space

TAMPA — For 13 years, Finney’s Tiger-Rock Martial Arts co-owners Troy and Nikki Finney have provided more than just Taekwondo instruction for their students. The husband and wife duo have created a supportive, family environment that teaches valuable...
Updated: 12 hours ago
Walmart shares jump as earnings beat expectations

Walmart shares jump as earnings beat expectations

Update: The Dow Jones Industrial Average was up 325 points, or 1.3 percent, early Thursday, driven by a jump in Walmart’s stock.Walmart’s aggressive push into groceries helped same-store sales in the United States grow more in the last quarter than t...
Published: 08/16/18
Tampa International Airport debuts new and improved Cigar City Brewery

Tampa International Airport debuts new and improved Cigar City Brewery

When Tampa International Airport officials decided which restaurants would go and which would stay, Cigar City Brewing made a convincing case it needed to stay in the airport’s massive billion dollar redevelopment plan. The local brewery has been imp...
Published: 08/16/18