Large experience centres as a business proposition for airports

Airports are evolving beyond transit hubs for goods, becoming crucial logistics hubs that enhance the efficiency and value of freight handling. Apart from being a hub for passenger and cargo movements, airports need to think beyond the usual to create new revenue streams for sustainable growth. Hence, creation of large experience centres at airports seems to be the next big thing for airports. It signals a shift in the way cargo operations are perceived, integrating storage, processing, and logistics innovation into a seamless operational flow.

Current situation and industry challenge

As global air freight demand continues to grow, airports are under increasing pressure to diversify revenue streams beyond traditional aviation-related activities. Traditionally, airports have relied heavily on aeronautical income derived from airlines and cargo-handling operations. However, the rise of e-commerce and global trade necessitates the development of large logistics and experience centres to handle the surge in cargo traffic, particularly in Asia-Pacific, where infrastructural limitations and outdated business models are challenges to innovation.

The rise of experience centres for freight

Airports across North America, Europe, and Asia-Pacific are pioneering the shift toward incorporating large logistics centres into their infrastructure. For instance, Changi Airport’s extensive cargo-handling facilities combine storage, processing, and high-tech automation, streamlining freight operations and offering innovative solutions. This shift toward large-scale experience centres is becoming a strategic move to increase efficiency, reduce turnaround times, and boost revenue from logistics services.

Challenges and gaps

While the concept of large freight experience centres is gaining momentum, there are gaps that need addressing. Developing these centres requires significant investment, which poses a financial risk for smaller regional airports. Moreover, airports must balance operational efficiency with infrastructure expansion to ensure smooth cargo handling, without disrupting daily operations. Seamless integration of these centres into existing logistics frameworks is essential to avoid bottlenecks and ensure security, speed, and scalability.

Why large experience centres matter for freight

Research shows that airports with advanced logistics centres report improved operational efficiency and reduced cargo dwell times, which increases profitability. According to IATA, non-aeronautical revenue, including from logistics services, accounts for a significant portion of total airport income, and experience-driven logistics centres play a pivotal role. Airports like Incheon in South Korea and Schiphol in the Netherlands have demonstrated that investing in advanced logistics infrastructure significantly improves cargo operations, positioning airports as key global logistics hubs.

For instance, Incheon’s logistics hub uses cutting-edge automation and digital technologies to streamline cargo processing, adding immense value to freight forwarders and logistics companies by reducing wait times and boosting efficiency.

The business proposition for airports

The key business proposition for airports is clear: revenue diversification and operational excellence. Airports that successfully integrate large logistics centres will attract top-tier freight forwarders, logistics providers, and technology partners, increasing their role as vital global logistics nodes. This drives revenue from freight services, enhances efficiency, and strengthens the airport’s brand as a premier logistics destination.

Looking ahead

As the air freight industry evolves, airports must embrace the future by investing in large experience centres that cater to freight and logistics. Airports, especially across Southeast Asia and Africa, stand to gain significantly by incorporating advanced logistics hubs into their infrastructure plans. Strategic partnerships, advanced technologies, and a deep understanding of global supply chain needs are essential for success.

By 2030, these freight-focused centres could become the standard for global airports, pushing the boundaries of logistics operations while significantly enhancing non-aeronautical revenue streams and positioning airports as leaders in the global logistics landscape.