AIRPORT: Potential customers give it a warm reception as the London facility reports a financially healthy year
Last Updated: May 11, 2010 8:00am
Rendering of the Gateway Project being built by Dancor Construction on Robin's Hill Road north of the London International Airport. The project is expected to be completed by mid July. The London International Airport is getting a warm welcome when it pitches its business plan to potential customers of a multi- million-dollar cargo terminal that’s set to open this fall.
The terminal, dubbed the Gateway Project, will see an international free trade zone created at the airport so that goods can be shipped here from around the world and then sent across North America.
“The walls are up, it will be finished over the next few months (and) taxiways are being finished,” said Steve Baker, airport chief executive. “We will bring airlines and freight into those buildings for a terminal cargo business.”
The airport is aiming for a September opening. By then, there may be announcements about businesses locating at the cargo terminal, he said.
“We see signs of a recovery. We are meeting with cargo operators, airlines and freight forwarders, and the industry is showing signs of coming back. More goods are being shipped,” he said.
Just as the city markets itself for passenger traffic, it is selling the city globally to get cargo, Baker said. “We want to take this from a transportation centre to a trade centre.”
The $11-million cargo centre is funded by the federal government — with a contribution of $8 million — and by the city’s contributing $2.5 million. The airport kicks in the remaining $500,000.
The airport authority held its annual meeting this month and released details that show 2009 was a financially healthy year for the London airport. Its total operating budget was $37 million and revenue was $10.8 million, a $1 million increase over 2008.
It added $2.6 million into reserves, a $600,000 increase over the reserve contribution in 2008.
Long-term debt dropped to $13.4 million, from $14.2 million in 2008.
The airport authority’s board members also remain well paid, getting $800 to attend each board meeting and $300 for a committee meeting. The chairperson of the board gets $20,000 and its director gets $10,000.
The three executives that make-up the airport executive — Baker, vice-president Mike Seabrook and human resources director Janet Carr — earned a combined wage of $474,670 in 2009.
The airport recently announced it will undertake a $6.5-million expansion of its passenger terminal, a project to be carried out this year. Passenger traffic grew by 6% last year.
“It’s because of new business,” aid Baker of the growth. “We knew there were airlines in the U.S. not making money in their operations. We marketed them to come to London. We built our services.”