Will Brexit close Scotland down?
In five weeks the UK is due to leave the EU after 46 years in the fold; the day will see dark clouds gather over Scotland and Northern Ireland. How is airfreight faring in the regions where a majority voted to remain in the EU in 2016?
On 24 June 2016’s Brexit referendum, two of the four constituent nations of the UK voted to ‘bremain’ – 62% of the voters who turned out in Scotland and 55% of those in Northern Ireland. Yet they will also leave the EU on 29 March. What is not clear at the moment is what effects Brexit will have on the flow of goods – and thus on the risks and opportunities of the move on the mode of transport that is the fastest when it comes to getting people and cargo to and from Scotland and Northern Ireland, located on the edges of both the UK and the EU.
For town and country
In January, York Aviation published a study that does not mention Brexit at all, despite the looming D-Day. The paper focuses on the influence Glasgow airport (GLA) has on the Scottish economy. The analysts outlined the airport’s contribution of GBP 1.44 billion (EUR 1.65 billion) to the Scottish economy, a figure that will rise to GBP 2.54 billion (EUR 2.9 billion) annually by 2040 – if GLA continues to grow as forecast in its master plan. The study underlined the key role of Scotland’s largest and the UK’s third-largest city as an export / import gateway. It handled more than GBP 3.5 billion (EUR 4 billion) worth of goods in 2017. EUR 1.8 million was the value of exports destined for countries outside the EU, with imports from these nations coming to EUR 2 million.
GLA managing director Mark Johnston believes that the study “confirms the economic benefits the airport generates for the city and for Scotland every year. We want to continue to grow and have thus invested more than GBP 130 million (EUR 150 million) in our facilities since 2011.”
The hub’s air cargo centre, operated so far by Airport Industrial Nominees, is located 13 km from the city centre on land leased by the airport operator to the year 2148. The 150,000 sqft estate (14,000 sqm) is now occupied by Nippon Express, the PJH Group and Alpha LSG, amongst others. It was acquired by the investor Warehouse Reit on 4 February. The price came to GBP 11.1 million (EUR 12.6 million). 15,466 t of freight was handled there in 2018 (–2.9%).
Comparable airfreight centre
Glasgow Prestwick airport (PIK) handled a little less cargo than GLA in 2018, namely 13,004 t, but this was 14% more than in 2017, according to the UK’s Civil Aviation Authority (CAA). The gateway, located around 50 km from Glasgow, is served regularly by full-freighters operated by Air France and Cargolux. In its annual report for 2017 the hub said that it “offers unique expertise in Scotland for the handling of especially large consignments,” which is one of the reasons why it plays a large role in charter operations.
The airport in Aberdeen (ABZ), the country’s oil capital, which is operated by AGS Airports (same as GLA), handled 6,162 t of freight last year (+2.6%).
The gateway in the Scottish capital Edinburgh (EDI), with a similar structure to GLA’s, is the largest air cargo hub in the region in terms of its absolute figures. According to the airports association ACI Europe the gateway handled 20,317 t of airfreight last year – 1.9% less than in 2017.
And a bit further west
Brexit is a high-stakes process for Belfast airport (BFS). In the year in which it was taken over by Vinci Airports, the larger of the capital of Northern Ireland’s two hubs handled 27,671 t of airfreight, says the CAA. This was double its result of the previous year; it is slowly returning to the throughput registered before 2015 / 2016’s collapse. Dublin (DUB) remains the leading airfreight location in Ireland; it handled 14,354 t (–0.1%). Throughput at Shannon airport (SNN), on the west coast, fell by 28% and stood at 13,671 t.
