UK businesses are benefitting to the tune of billions of pounds thanks to the global cargo operations of East Midlands Airport, a new report suggests.
The newly commissioned research suggests the airport’s position as a global hub for express air freight supports the supply chains of many of the companies that are important to the Midlands economy – particularly advanced manufacturers and the aerospace sector.
It said that in March this year alone, £1.4 billion worth of goods were exported through the Castle Donington airport, which handles more than 448,000 tonnes of goods a year, and has the UK’s biggest share of the freight-only aircraft market.
The research, conducted by York Aviation on behalf of the airport, highlights the importance of established freight companies DHL, UPS, FedEx, Royal Mail and, increasingly, Amazon to the regional economy.
It suggests 185 of the world’s biggest cities including New York, Singapore, Dubai, Hong Kong, Tokyo, Paris, Mumbai, Jakarta and Frankfurt and “second-tier” cities such as Bogota, Tel Aviv, Cape Town, Seattle, Nairobi and Panama City can be reached from the East Midlands with only one stop.
The research also states the value of the goods exported through the airport is twice that of imports, showing its significance to the value to UK plc.
On top of that the average customs value of exports per tonne is £335,000, it said, compared to £180,000 at some other UK airports, suggesting the high value of goods being shipped in and out.
The research also suggests it is helping make the region more internationally focussed, bringing foreign investment in to sectors such as advanced manufacturing, aerospace, healthcare pharmaceuticals and automotive. Fashion and household items equate to about 10 per cent of both import and export volumes.
Aviation Minister Robert Courts MP said: “We know how critical quick access to the world’s most important economic powerhouses are to businesses, especially in sectors like advanced manufacturing, and so the links provided by East Midlands Airport will undoubtedly enhance not just the attractiveness of the Midlands, but the UK as a whole.”
The airport has been steadily growing in cargo volumes since 2013, which was supercharged during the pandemic.
In 2020, volumes were up 13 per cent on the previous year due to more people shopping online and a move by businesses to use more secure end-to-end supply chains.
The airport says much of this new business is expected to stay, as users make a permanent switch to dedicated air cargo specialists.
Airport managing director Clare James said: “Airports are important assets to the regions they serve.
“What this analysis shows is just how critical EMA is to the sectors that generate economic value and employment for so many people locally.
“As the UK continues to establish new relationships with key economies around the world, the airport will play an increasingly important role in the safe and speedy movement of time-critical and high value goods in and out of the UK.
“In doing so, it will continue to make a significant contribution to strengthening the East Midlands as a globally connected international economy.”
East Midlands Chamber of Commerce chief executive, Scott Knowles, said it wasn’t a new phenomenon.
He said: “A huge number of businesses across our region and beyond have long relied on the airport’s cargo operation, and still today we’re seeing a growing number of major logistics firms opt to locate themselves in and around the airport.
“The surrounding area is a centre of economic activity, a magnet for inward investment and a driver of key developments of strategic importance, such as the East Midlands Freeport.
“Ultimately, these new opportunities will create jobs and wealth for people living in cities and towns across Derbyshire, Leicestershire and Nottinghamshire.”
