“Takeoff and Landing: Bellingham International Airport’s Potential for Economic Lift-Off” As the sun rises over the scenic waters of Bellingham Bay, a vibrant economic landscape is unfolding in the surrounding areas. At the heart of this growth is the Bellingham International Airport (BLI), a bustling aviation hub poised to catapult the region into a new era of business expansion. With its strategic location and growing demand for air travel, BLI is emerging as a crucial driver of economic development in Whatcom County. In a recent report by the Cascadia Daily News, the potential for business growth at BLI and in the surrounding areas is being touted as a game-changer for local entrepreneurs, investors, and residents alike. In this article, we’ll delve into the details of this exciting development, exploring the opportunities and challenges that lie ahead for this thriving region.
Port Eyes Business Growth at Bellingham International Airport, Surrounding Areas
Bellingham International Airport has seen a significant increase in business growth in recent years, driven largely by the demand for flights from Canada. According to Sunil Harman, director of aviation at the Port of Bellingham, Canadian demand for flights from Bellingham International Airport has increased by 65% over the past 12-year period.
Harman attributes the strong Canadian demand to the airport’s proximity to the border and low fares. “If we had had the full numbers with normal Canadian demand in the first quarter of ’22, we would have probably seen something better than 65%,” he said. The final figure for 2022 came in at about 62% Canadian customers.
Proximity to the border and low fares make the airport particularly attractive to Canadians hoping to fly in the U.S. “It’s an issue of market dynamics,” Harman said. “The U.S. customer is a much smaller proportion of the overall number of customers that are within a 90-minute drive to this airport. The Canadian demand, in terms of population and propensity to travel, is much higher. So, we get a higher proportionate number of travelers from Canada.”
The exchange rate also hasn’t appeared to impact Canadians who intend to travel significantly. Last year, the U.S. dollar hit a 20-year high, but Harman said the attraction of the low fares means that the exchange rate “really has no relevance.”
Market Dynamics: A Key Driver of Growth
The demand for flights from Canada is not a one-way street, with U.S. customers also playing a significant role in the market. The U.S. customer is a much smaller proportion of the overall number of customers that are within a 90-minute drive to the airport.
To remain competitive, the Port of Bellingham needs to develop a more customer-focused approach, leveraging its existing relationships with airlines to attract more passengers from Canada. “Where else would they go?” Harman said. “If you want to serve this region, what options do you have? At some point, airlines — other than the ones that are already here — are going to realize that if they want to continue growing in this region, they have to go where there is a surplus of capacity. And that capacity right now resides at BLI, [with] a cost structure that competes on a national and international level.”
The Need for a New Airport Master Plan Update
The Port’s current plan, which has been in development for several years, is no longer adequate to address the challenges posed by the rapid growth of the regional economy. The airport needs a new plan that is more comprehensive, technically sound, and actively involved in the oversight process.
A new airport master plan update, developed with a high level of policy-based and technically sound approach, is essential to positioning Bellingham International Airport for long-term success. “We need a new Bellingham International Airport Master Plan Update developed with a high level of policy-based, technically sound, and actively involved oversight,” said Harman.
Implications for the Regional Economy
The development of a more customer-focused approach and the expansion of the airport’s infrastructure are essential to the regional economy. By improving its competitiveness and customer focus, Bellingham International Airport can attract more passengers from Canada and other destinations, driving economic growth and job creation.
By leveraging its existing relationships with airlines and improving its competitiveness, Bellingham International Airport can become a major hub for cargo and passenger traffic, driving economic growth and job creation in the region.
Conclusion
The Port of Bellingham is at a critical juncture, with investments in infrastructure set to transform its role in the regional economy. The modernization project, the expansion of the rail line, and the development of a new airport master plan update are all essential steps towards achieving this goal.
Investments in Infrastructure
In an empty parking lot at the Bellingham Shipping Terminal, Sen. Maria Cantwell (D-WA) looked east toward the railroad tracks where in the future, cargo from ships will be loaded into rail cars for transport from Bellingham to as far as California and Chicago.
She’d just come from watching 155-foot pilings being hammered into the water as part of the shipping terminal’s modernization project — a $27.5 million project expected to be completed by the end of 2025. Both the rail line extension and the modernization project are being funded in whole or in part with federal infrastructure dollars.
“I don’t think everybody always thought about port infrastructure as a key economic development tool for our country,” Cantwell said. “We’re in the era of the Pacific.”
Shipping Terminal Modernization
The $17.9 million project, fully funded by federal dollars, will connect the Burlington Northern-Santa Fe mainline to the shipping terminal. It is expected to be in service by 2028.
The shipping terminal modernization received $6.85 million in federal dollars. The last time rail ran to the shipping terminal was in the early 2000s before the former Georgia Pacific mill site closed.
“We have various customers who want to do business in Bellingham, and as soon as they hear we don’t have a rail connection, they hang up the phone,” said Rob Fix, the port’s executive director.
Port of Bellingham Vision
It is the port’s belief that the ship-rail connection will also make it a competitor with the Port of Vancouver. The port has already seen interest from Canadian customers.
The Port of Vancouver is experiencing cargo congestion because of an influx of imports and a dearth of railcars to transport the materials, according to ASI Canada.
“With that rail connection and the deeper berth here, we can peel some of that cargo off and bring those jobs here,” said Matt Cress, Marine Terminals business development manager at the Port of Bellingham.
Expansion Plans
Jetway Expansion
Everett’s Paine Field also has the newest concept in jetway design — glass walls along the jetway. Paine Field is working to increase its market share and get airlines to redeploy flights from SeaTac to Paine Field.
The Paine Field Master Plan 2040 was completed just a few months ago. It is motivated by the statement, “Seattle-Tacoma International Airport (SEA) will likely not be able to supply adequate capacity to meet passenger demand sometime in the next 20 years.”
PAE is positioning itself to serve unmet demand. The PAE plan concludes, “SEA may not be able to accommodate air travel demand as early as 2027.”
Bellingham International Airport Expansion
BLI has eight gates, which would allow the airport to serve four times the volume it serves today, with a goal of serving its capacity of 1.2 million passengers in about a decade.
Harman is confident this kind of expansion is possible, saying he expects airlines to see BLI as the go-to place for airlines to expand service in the Pacific Northwest.
“Where else would they go?” Harman said. “If you want to serve this region, what options do you have? At some point, airlines — other than the ones that are already here — are going to realize that if they want to continue growing in this region, they have to go where there is a surplus of capacity. And that capacity right now resides at BLI, [with] a cost structure that competes on a national and international level.”
Market Capture Strategies
Assessing Market Capture Strategies
BLI’s plan needs to be updated. The first of BLI’s three plan phases ended in 2023. The next two phases go from 2024 to 2037.
These phases will cost $38.6 million — but include no jetways nor any terminal improvements.
Unfortunately, it’s not. In fact, the Port’s website refers to the current plan as the “NEW AIRPORT MASTER PLAN.”
BLI has a lot to offer. Airlines will be begging for gates when those gates have jetways.
The problem is that if BLI waits for airlines to come to us with a proposition, nothing will happen. BLI needs to take the initiative.
Expert Analysis and Insights
Importance of Market Capture Strategies
Market capture strategies are essential for airports like BLI to remain competitive in the regional travel market.
Airlines will be looking for airports with a surplus of capacity and a cost structure that competes on a national and international level.
BLI needs to take the initiative and develop a more customer-focused approach, leveraging its existing relationships with airlines to attract more passengers from Canada.
By doing so, BLI can become a major hub for cargo and passenger traffic, driving economic growth and job creation in the region.
Conclusion
Conclusion: Port Eyes Business Growth at Bellingham International Airport and Surrounding Areas
The latest developments at Bellingham International Airport (BLI) and its surrounding areas have sparked significant interest among local business leaders and residents. According to the Cascadia Daily News, the Port of Bellingham is actively exploring opportunities for business growth and expansion in the region. The key points discussed in the article highlight the port’s efforts to establish a business-friendly environment, increase air travel options, and attract new industries to the area. These initiatives are expected to create new job opportunities, stimulate economic growth, and enhance the overall quality of life for residents.
The implications of this business growth are far-reaching, with potential benefits extending beyond the airport and surrounding areas. As a major economic driver, the growth of BLI and its surroundings is likely to have a ripple effect on the regional economy, attracting new businesses, and investments, and creating a more diverse and vibrant community. Moreover, the port’s efforts to establish a business-friendly environment and increase air travel options are expected to enhance the region’s connectivity and competitiveness, making it an attractive destination for entrepreneurs, investors, and visitors alike. As the region continues to evolve and grow, it will be exciting to see the impact of these initiatives on the local economy and community.
As the Port of Bellingham looks to the future, it’s clear that the region is poised for significant growth and transformation. With its strategic location, business-friendly environment, and commitment to innovation, the Port of Bellingham is well-positioned to become a hub for economic activity and entrepreneurship. As we look to the future, one thing is certain: the growth of Bellingham International Airport and its surroundings will be a key driver of this transformation, and its impact will be felt for years to come. The question remains, what’s next for this emerging region, and how will it continue to evolve and thrive in the years to come?