Michigan’s Capital Region International Airport (LAN) is getting a multi-million dollar federal funding package to boost its cargo infrastructure. The US$8.2 million grant will go towards expanding the airport’s cargo ramp by 63% and accommodate an anticipated significant increase in cargo volumes moving through LAN this decade.
Federal funding for cargo ramp expansion
Capital Region International Airport, formerly Lansing Capital City Airport, is located just outside Lansing, Michigan – approximately midway between Detroit and Grand Rapids. In addition to 60 million pounds plus of cargo that moves through the airport annually, more than 350,000 travelers also pass through LAN.
As a result of two bipartisan federal funding bills recently passed, the funding will support current cargo operations and continued growth. The total cost of the cargo ramp expansion is $11.9 million. The extra money needed to complete the project will come from the Airport Improvement Program (AIP) and local match dollars.
“The Greater Lansing region is only 90 minutes away from 90% of the state’s population,” said John Shaski, Capital Region Airport Authority (CRAA) Chairman. “It’s a natural central hub with diverse transportation infrastructure and a competitively low-cost of living, making it an attractive area for businesses to invest and grow. This is a huge win for LAN.”
UPS is one of the big cargo operators at Capital Regional International Airport. Photo: UPS
Bigger cargo ramp has widespread flow-on effects
Capital Region International Airport is a key cog in mid-Michigan commerce and serviced by several cargo airlines, including Ameriflight, UPS, and Martinaire Aviation. Cargo volumes have grown steadily at the airport over the last two decades. The airport’s smaller size means cargo is usually processed quicker than at bigger airports, like Detroit, giving LAN a competitive advantage.
“The opportunity to expand the cargo operations at the Capital Region International Airport would represent a significant boost for our regional economy,” said Paula Cunningham, board chair, Mid-Michigan Business Travel Coalition. “We know that our airport is an important driver of our regional economy, and upgrading our ability to move cargo both domestically and internationally is a significant step forward.”
The beefing up of cargo infrastructure at LAN is timely. The demand for cargo space on planes is increasing worldwide and shows no signs of slowing down. Shipping cargo by air is relatively expensive, but it is fast and dodges issues like shipping container shortages and clogged ports that currently hampers sea and rail transport.
Further cargo growth is expected at Capital Region International Airport
The rise in e-commerce and online shopping, where buyers expect fast delivery, also contributes to the upsurge in air cargo volumes that is driving infrastructure projects like the cargo ramp expansion at LAN.
“This federal funding will allow us to expand our cargo operations at the airport and give us the ability to better accommodate current demand and future growth as well as diversify revenues,” said Nicole Noll-Williams, President and CEO of the CRAA.
Capital Region International Airport directly employs more than 700 Michigan residents, the bulk of whom work across the airport’s cargo operations. Indirectly, the airport contributes nearly 7,400 jobs and almost $240 million in wage income to the tri-county region. The airport says its total economic impact on the region is approximately $892 million.
With increasing cargo volumes through LAN likely to increase employment opportunities and boost the local and state economy, it’s no surprise everyone is talking up the cargo ramp expansion. Work on the project is expected to begin before June.
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