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New PIERS data cites city’s strategic location, investment, and air cargo operations

ONTARIO - 07/10/06 - A new report released by the City of Ontario in Southern California's Inland Empire indicates that international trade is having a profound impact on the regional economy.

Located 36 miles east of Los Angeles and positioned within the hub of Los Angeles, Orange, San Bernardino and Riverside Counties, the city is seen as "economic engine" of one of the fastest growing regions in the US, according the report based on data compiled by the Port Export Reporting Service (PIERS).

Total two-way trade in 2004 for the region was valued at $8.1 billion or 10.6% of the Inland Empire's total personal income with exports represented $3 billion with imports representing $5.1 billion, it said.

The city led the region's activity with $2.8 billion in total 2004 two-way trade or 38% of the Inland Empire's total.

From 2000 to 2004 total trade for the city increased 98% in real terms with exports growing at a rate of 145% and imports growing at a rate of 92%.

LA Ontario International Airport (ONT) contributed significantly to Ontario's international trade growth with ONT already ranked as the 15th busiest cargo airport in the nation.

It's expected that in 15 years ONT's cargo operations will match that at Los Angeles International Airport.

In 2003, the airport was listed among six of the best cargo airports in the world by Airport World magazine, while Forbes ranked it as one of the five best alternate airports in the US. 

Significant factors driving the expected increase include the selection of ONT by UPS as one of five new regional heavy freight hubs, as well as increasing its operating rights to China further augmenting the UPS China Express service.

Aero Ontario, LLC, a division of Aeroterm of Annapolis, Maryland, is investing $142.9 million in an approximately 100-acre international air cargo center that will break ground later this year.
 
The 110-acre facilty - dubbed the Pacific Gateway Cargo Center - will be able to accommodate a wide range of air cargo in close proximity to the airport and the region's extensive highway and rail network.

In May 2005, the city began work on a $50 million project to refurbish the westerly 10,200 feet of the airport's main runway in cooperation with Los Angeles World Airports, which manages operations at ONT.

When completed this summer, the runway project will permit the airport to handle the Airbus A380, the world's largest commercial aircraft that's expected to enter service later this year.

According to the report, total two-way trade for the Inland Empire increased 47% in real terms over the period 2000 to 2004 with exports growing at a much faster rate than imports.

From 2000-2004, it said, exports increased 142% in real terms, while imports recorded a real growth rate of only 20%.

Raw materials represent a significant portion of the Inland Empire's export growth over the past several years, with commodities such as scrap metal and fabric ranking as the region's top export goods.

Six out of the Inland Empire's top 10 trading partners are located in Asia, representing 81% of total trade by vessel, while China ranks as the region's number one trading partner.

According to the report, data from the US Bureau of Transportation Statistics note that exports and imports involving Canada and Mexico are primarily handled via truck and rail and thus the importance economic importance of these countries "is likely underestimated."

While the PIERS data is based primarily on sea-borne freight, it was extrapolated out to estimate freight movement from train, truck, and air moves.

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