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KarlB737
Topic Author
Posts: 2838
Joined: Sat Mar 20, 2004 9:51 pm

UPS Signs 5 Year Lease To Add Gary Airport To Its Cargo Network

Thu May 14, 2020 4:12 pm

It has been ages since I have posted anything regarding GYY. Not since the lengthening of the main runway I believe. This caught me by surprise but I am pleased that they can add this as a victory for the region. Apparently UPS found some reason to make this move and have signed a 5 year lease with the option for two lease extensions. I don't know if this action is tied to the fact that GYY was involved in the reception of many shipments of ventilators in recent weeks as noted here:

Courtesy: Northwest Indiana Times

UPDATE: COVID-19 Emergency Center Receives Ventilators For 17 Local Hospitals

"Ventec Life Systems CEO Chris Kiple said the critical care ventilators deliver precise airflow to protect the lungs, have accurate monitors that assess well-being and have advanced controls that will allow heath care workers to efficiently wean patients off the ventilators. GM Chairman and CEO Mary Barra commended the commitment of staff at GM, Ventec and the businesses’ suppliers to make the manufacturing and delivery possible. UPS expedited the delivery to the center in Gary..........."

https://www.nwitimes.com/news/local/porter/porter-newsletter/update-covid-19-emergency-center-receives-ventilators-for-17-local-hospitals/article_7ab6f884-d78b-575f-806c-13b638bbbb72.html

Courtesy: Northwest Indiana Times

UPS Signs Lease To Add Gary Airport To Its Cargo Network

“UPS expanding its services to GCIA provides the airport with a critical competitive advantage and solidifies its role as the Chicago region’s third regional airport,” said Authority Chairman Timothy Fesko said. “This is the latest private sector investment bolstering our operations capability and allows the airport to provide critical benefits to the Chicago Metropolitan Area and Northwest Indiana.”

The agreement includes 14,000 square feet of office space in the airport’s passenger terminal and a 150,000 square foot ramp with space to park two Airbus A300s.

https://www.nwitimes.com/business/local/ups-signs-lease-to-add-gary-airport-to-its-cargo-network/article_5335791c-c732-58ee-84f6-009a52b69032.html
 
jetblueguy22
Posts: 3439
Joined: Thu Nov 29, 2007 12:26 am

Re: UPS Signs 5 Year Lease To Add Gary Airport To Its Cargo Network

Thu May 14, 2020 4:38 pm

The ventilator thing wouldn’t drive it. Opening up a new gateway is a long process, this has probably been in the works for almost 2 years.

This is all because of e commerce. More and more people are buying on line. Can’t say I know the Chicago area well, but looking at it on a map, getting cans to and from ORD is probably a nightmare during the morning and evening due to traffic.
Look at sweatpants guy. This is a 90 million dollar aircraft, not a Tallahassee strip club
 
alasizon
Posts: 2565
Joined: Sat Apr 28, 2007 8:57 pm

Re: UPS Signs 5 Year Lease To Add Gary Airport To Its Cargo Network

Thu May 14, 2020 4:50 pm

jetblueguy22 wrote:
The ventilator thing wouldn’t drive it. Opening up a new gateway is a long process, this has probably been in the works for almost 2 years.

This is all because of e commerce. More and more people are buying on line. Can’t say I know the Chicago area well, but looking at it on a map, getting cans to and from ORD is probably a nightmare during the morning and evening due to traffic.


Two parking spots does not a gateway make.
Airport (noun) - A construction site which airplanes tend to frequent
 
jetblueguy22
Posts: 3439
Joined: Thu Nov 29, 2007 12:26 am

Re: UPS Signs 5 Year Lease To Add Gary Airport To Its Cargo Network

Thu May 14, 2020 5:16 pm

alasizon wrote:
jetblueguy22 wrote:
The ventilator thing wouldn’t drive it. Opening up a new gateway is a long process, this has probably been in the works for almost 2 years.

This is all because of e commerce. More and more people are buying on line. Can’t say I know the Chicago area well, but looking at it on a map, getting cans to and from ORD is probably a nightmare during the morning and evening due to traffic.


Two parking spots does not a gateway make.

Lot more to it than just two parking spots.

Integrators aren’t like a passenger airline. JetFly airlines wanting to fly to BDL just needs a gate lease from the airport authority. They lease the baggage claim space and sign Menzies to service everything else.

The integrators responsibility doesn’t end when the plane lands. They still have to get the work to the delivery buildings. It’s a complex process and one I’ve been involved in.
Look at sweatpants guy. This is a 90 million dollar aircraft, not a Tallahassee strip club
 
KarlB737
Topic Author
Posts: 2838
Joined: Sat Mar 20, 2004 9:51 pm

Re: UPS Signs 5 Year Lease To Add Gary Airport To Its Cargo Network

Thu May 14, 2020 5:17 pm

jetblueguy22 wrote:
getting cans to and from ORD is probably a nightmare during the morning and evening due to traffic.


This addition to GYY also surprises me because of the short distance to another UPS hub - RFD.
 
alasizon
Posts: 2565
Joined: Sat Apr 28, 2007 8:57 pm

Re: UPS Signs 5 Year Lease To Add Gary Airport To Its Cargo Network

Thu May 14, 2020 5:27 pm

jetblueguy22 wrote:
alasizon wrote:
jetblueguy22 wrote:
The ventilator thing wouldn’t drive it. Opening up a new gateway is a long process, this has probably been in the works for almost 2 years.

This is all because of e commerce. More and more people are buying on line. Can’t say I know the Chicago area well, but looking at it on a map, getting cans to and from ORD is probably a nightmare during the morning and evening due to traffic.


Two parking spots does not a gateway make.

Lot more to it than just two parking spots.

Integrators aren’t like a passenger airline. JetFly airlines wanting to fly to BDL just needs a gate lease from the airport authority. They lease the baggage claim space and sign Menzies to service everything else.

The integrators responsibility doesn’t end when the plane lands. They still have to get the work to the delivery buildings. It’s a complex process and one I’ve been involved in.


I'm not saying their job stops at the ramp; but two spots is not enough to make a gateway, it is simply a station for them; particularly since most of it will connect to the existing network. If they were building a new distribution center near Gary, then I would agree with you.
Airport (noun) - A construction site which airplanes tend to frequent
 
Moosefire
Posts: 135
Joined: Wed Aug 15, 2018 12:47 pm

Re: UPS Signs 5 Year Lease To Add Gary Airport To Its Cargo Network

Thu May 14, 2020 5:31 pm

alasizon wrote:
jetblueguy22 wrote:
The ventilator thing wouldn’t drive it. Opening up a new gateway is a long process, this has probably been in the works for almost 2 years.

This is all because of e commerce. More and more people are buying on line. Can’t say I know the Chicago area well, but looking at it on a map, getting cans to and from ORD is probably a nightmare during the morning and evening due to traffic.


Two parking spots does not a gateway make.


They call all of their mainline stations “gateways”.
MD-11F/C-17A Pilot
 
ShinyAndChrome
Posts: 280
Joined: Fri Aug 28, 2015 1:53 am

Re: UPS Signs 5 Year Lease To Add Gary Airport To Its Cargo Network

Thu May 14, 2020 6:40 pm

KarlB737 wrote:
jetblueguy22 wrote:
getting cans to and from ORD is probably a nightmare during the morning and evening due to traffic.


This addition to GYY also surprises me because of the short distance to another UPS hub - RFD.


I had similar thoughts. The article didn't mention anything about Rockford but are there any capacity issues there that might be preventing them from growing?
 
drdisque
Posts: 1269
Joined: Mon Mar 26, 2007 9:57 am

Re: UPS Signs 5 Year Lease To Add Gary Airport To Its Cargo Network

Thu May 14, 2020 7:24 pm

KarlB737 wrote:
jetblueguy22 wrote:
getting cans to and from ORD is probably a nightmare during the morning and evening due to traffic.


This addition to GYY also surprises me because of the short distance to another UPS hub - RFD.


Even at night it's a solid 2-2.5 hour drive from GYY to RFD.

It probably means that there's enough cargo flying from SDF to RFD or ORD with an ultimate destination in Northwest Indiana to justify flying to GYY
 
tnair1974
Posts: 271
Joined: Sun Sep 15, 2019 5:37 pm

Re: UPS Signs 5 Year Lease To Add Gary Airport To Its Cargo Network

Fri May 15, 2020 7:55 pm

UPS also flies to SBN, but South Bend might be a bit too distant to be a reliever for Chicago. Even if the roads weren't bottlenecked.

As a side note, I seem to recall that UPS at one point tried trucking all parcels from the Columbus (OH) area to UPS's "Worldport" at SDF. However, jammed interstates (especially around Cincinnati) now makes UPS fly LCK-SDF.

To my knowledge, all UPS parcels from Evansville, Indianapolis, Dayton, Cincinnati, Lexington and Nashville are trucked to Worldport.
 
Delta28L
Posts: 326
Joined: Sat Jul 28, 2018 2:00 pm

Re: UPS Signs 5 Year Lease To Add Gary Airport To Its Cargo Network

Fri May 15, 2020 8:12 pm

ShinyAndChrome wrote:
KarlB737 wrote:
jetblueguy22 wrote:
getting cans to and from ORD is probably a nightmare during the morning and evening due to traffic.


This addition to GYY also surprises me because of the short distance to another UPS hub - RFD.


I had similar thoughts. The article didn't mention anything about Rockford but are there any capacity issues there that might be preventing them from growing?


I don’t think there is a problem of expanding ramp space. Heck Amazon just finished a ramp expansion
 
FWAERJ
Posts: 2796
Joined: Wed Jun 07, 2006 1:23 am

Re: UPS Signs 5 Year Lease To Add Gary Airport To Its Cargo Network

Fri May 15, 2020 10:56 pm

We also have to remember that GYY is 30-45 minutes by truck from the UPS Hodgkins ground facility, the Worldport of the UPS Ground system.

I bet we will see more Next Day Air/2nd Day Air shifted to hybrid air/ground flights, which UPS has been working on and perfecting for a decade. Probably the only reason why it’s starting so big with two A300s a day.
B721/722/731/732/733/735/73G/738/739/742/752/753/762/763, A300/319/320, DC-9/10, MD-82/83/88/90, ERJ-140/145, CRJ-200/700, Q200, SF340, AS350
 
UPS757Pilot
Posts: 147
Joined: Fri Apr 20, 2007 5:22 am

Re: UPS Signs 5 Year Lease To Add Gary Airport To Its Cargo Network

Sat May 16, 2020 1:36 am

jetblueguy22 wrote:
The ventilator thing wouldn’t drive it. Opening up a new gateway is a long process, this has probably been in the works for almost 2 years.

This is all because of e commerce. More and more people are buying on line. Can’t say I know the Chicago area well, but looking at it on a map, getting cans to and from ORD is probably a nightmare during the morning and evening due to traffic.

Correct, it's been in the works for a couple of years.
drdisque wrote:
KarlB737 wrote:
jetblueguy22 wrote:
getting cans to and from ORD is probably a nightmare during the morning and evening due to traffic.


This addition to GYY also surprises me because of the short distance to another UPS hub - RFD.


Even at night it's a solid 2-2.5 hour drive from GYY to RFD.

It probably means that there's enough cargo flying from SDF to RFD or ORD with an ultimate destination in Northwest Indiana to justify flying to GYY

This new gateway will serve to increase support Chicago and NW Indiana, mostly due to ecommerce growth. Room to expand at ORD was nonexistent so GYY was the next best option.
 
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piedmontf284000
Posts: 458
Joined: Wed Jun 15, 2016 12:00 pm

Re: UPS Signs 5 Year Lease To Add Gary Airport To Its Cargo Network

Sat May 16, 2020 1:47 am

Delta28L wrote:
ShinyAndChrome wrote:
KarlB737 wrote:

This addition to GYY also surprises me because of the short distance to another UPS hub - RFD.


I had similar thoughts. The article didn't mention anything about Rockford but are there any capacity issues there that might be preventing them from growing?


I don’t think there is a problem of expanding ramp space. Heck Amazon just finished a ramp expansion



GYY is going to be only for Chicago Area parcels, as it only can hold two aircraft and has a 150,000 sq foot ramp. RFD, is a regional hub that utilizes sorting to almost every corner of the USA and acts as a compliment to SDF. It is the second largest distribution hub in the UPS network. It can park 40 airplanes and has 50 ACRE ramp. So GYY is complimenting ORD not RFD.
 
dcs921
Posts: 68
Joined: Thu Feb 01, 2018 4:40 pm

Re: UPS Signs 5 Year Lease To Add Gary Airport To Its Cargo Network

Sun May 17, 2020 4:46 am

FWAERJ wrote:
Probably the only reason why it’s starting so big with two A300s a day.


They will not start with two A300s per day. The press releases says.
https://pressroom.ups.com/pressroom/ContentDetailsViewer.page?ConceptType=PressReleases&id=1589388817917-286

Gary will be served by a UPS Airlines Airbus A300. With a maximum payload of more than 120,000 lbs., the wide body cargo jet can carry more than 14,000 UPS Next Day Air® packages.


Part of the the press release does state they will have room for two aircraft.
An airport facility lease approved earlier today includes 14,000 square feet of office space in the airport’s passenger terminal and a 150,000-square-foot ramp area, with enough space to park two A300s.


They need to be able to park two aircraft for contingency reasons. For example if the aircraft breaks and is unable to fly out and a rescue flight is needed to rescue the packages. They need to have a place to park the rescue aircraft.
 
strfyr51
Posts: 4899
Joined: Tue Apr 10, 2012 5:04 pm

Re: UPS Signs 5 Year Lease To Add Gary Airport To Its Cargo Network

Sun May 17, 2020 5:29 am

KarlB737 wrote:
jetblueguy22 wrote:
getting cans to and from ORD is probably a nightmare during the morning and evening due to traffic.


This addition to GYY also surprises me because of the short distance to another UPS hub - RFD.[/quote
The REAL question? what will UPS save in delivery times from Gary vs Rockford? One can easily serve the south side of Chicago and Ft. Wayne Ind. and the other can serve the Chicago Northern & NW suburbs So Wisconsin and South Eastern Minnesota near I-90 and I-290 while Gary is close to I-80. That's a damn lot of distance for one Hub to cover. I don't care who the delivery company is. the loads on One hub to cover tha area must be a nightmare to even figure out.

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