China cargo service a priority for airport

Creation of direct air-cargo service between northern Nevada and China, a priority of the management of Reno-Tahoe International Airport, is moving closer to reality.

No one predicts the immediate start of service. Talks have been under way for two years, and airport officials say they're prepared to put at least two more years into the negotiations.

But Chinese air-cargo companies, the key to development of international service from the Reno airport, keep coming back for more information.

"We've made great strides," says Krys Bart, president and chief executive officer of the airport.

The airport's pitch: Because Reno is west of Los Angeles and north of San Francisco, cargo carriers can cut 300 miles on the trip from Chinese cities, saving on fuel and time.

Landing fees are less than those charged at international airports in San Francisco and Los Angeles, and operating costs for airlines at the major hubs are high.

And because Reno-Tahoe International Airport isn't as busy as big airports on the West Coast, carriers can get planes in and out more quickly and back in the air where they make money.

The airport has infrastructure in place to handle international cargo shipments, airport officials say, and they believe there's enough freight moving through the region to make nonstop service profitable.

Tom Medland, the director of air service business development of the airport, and Brian Pratte, who oversees development of air cargo service, have sorted through reams of customs data to determine the market's potential.

Pratte notes that air cargo operations at Reno Tahoe International Airport serve parts of five states northern Nevada, northeast California, southeast Oregon, southern Utah and northwest Utah.

One-day truck service links each of those regions with the airport.

The potential for direct cargo flights between Reno and China is closely watched by economic development officials, who think the service would spur both the logistics and manufacturing sectors of the northern Nevada economy.

"Anything that improves connectivity to the outside world is a plus," says David Steiger, who works with manufacturers in Carson City in his role as a project manager for the Management Assistance Partnership, the industrial extension program of Nevada's university system.

"We're an economic engine," says Bart, "We understand how significant this airport is for the economy."

She notes the airport's efforts to create international cargo links have garnered support from state and regional economic development officials, as well as from developers of industrial properties in northern Nevada.

Simultaneously, the airport is working to build support among manufacturers and logistics companies that are likely beneficiaries of nonstop cargo service to China.

At the airport itself, creation of nonstop flights could create jobs handling cargo flights and would generate increased revenues through landing fees paid by heavily-laden cargo aircraft.

Airport executives traveled to China last month and met with nine carriers over a couple of weeks.

Pratte says Chinese carriers, rather than U.S. cargo companies, are targeted to launch service to Reno because Chinese cargo carriers typically organize point-to-point international service. U.S. carriers typically move cargo through a hub and it's unlikely Reno ever will be a cargo hub.

Additionally, he says, the Chinese government is cool to the idea of more cargo flights into the country by U.S. carriers and looks instead for Chinese cargo companies to meet future demand.

Medland says the recession has proven an opportune time for discussion of cargo service between China and Reno.

"In a down economy, people are looking at different ways of doing things," he says.

Shippers who can't raise prices, for instance, look to cost-cutting to improve their profitability. That opens doors for the Reno airport's sales pitch.