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SHANNON AIRPORT GROUP BEGINS €14M BUSINESS PARK EXPANSION
“The Park supports a wide variety of companies from industrial and manufacturing, to life science and aviation.”
T
he Shannon Airport Group marked the official sod turning for a major new €14 million development in the Shannon Airport Business Park, adjacent to Shannon Airport, in November. The project will deliver
two state-of-the-art industrial units, Blocks Y and Z, adding approximately
10,000 sq m of flexible, sustainable space to one of Ireland’s most prominent business locations. Speaking at the sod turning, Ray O’Driscoll, The Shannon Airport
Group Interim CEO said: "We are proud of our record in delivering high- quality commercial property space that meets the needs of modern businesses. This latest development is another step in driving economic growth for the region. By attracting new companies and creating opportunities for people to live, work, and spend locally, we are generating a positive impact that extends far beyond the business park itself." With Shannon Airport Business Park close to full occupancy
this investment highlights the continued demand for high-quality industrial and commercial facilities in the region. The development is scheduled for completion in the first quarter of 2027. The project will see the construction of two industrial units with a
combined gross floor space of approximately 10,000 sq m. Unit One will measure around 3,500 sq m and is designed with the flexibility to be subdivided into two individual units, while the second unit will be approximately 6,500 sq m and can be subdivided into three individual units.
Sustainability at the core The Shannon Airport Group is committed to delivering sustainable infrastructure. Blocks Y and Z will incorporate advanced energy efficiency measures, low-carbon materials, solar PV panels, rainwater
harvesting and biodiverse landscaping, among other features. Spanning over 240 hectares of commercial space, Shannon
Airport Business Park is Ireland’s largest multi-sectoral business park outside Dublin. The Business Park’s offering has helped attract new businesses, creating a thriving community of over 300 companies and more than 10,000 employees, all of which generates a significant boost for the local economy. Its proximity to Shannon Airport, with its international air
connectivity and major transport route, makes it a prime location for companies seeking to grow and thrive in the Mid-West region. The Park supports a wide variety of companies from industrial and manufacturing, to life science and aviation, with a footprint of over four million square feet. Commenting on the Group’s investment record, O’Driscoll said:
“Since our establishment in 2014, we have demonstrated an unwavering commitment to driving economic development in the region. This commitment is evident in the fact that, over the period from 2014 through the end of 2025, we will have invested a total of €200 million across our airport and commercial property businesses as part of our long-term development strategy.” Air freight operations at Shannon Airport present a nuanced
picture of modest growth coupled with some significant strategic shifts. According to recent data from the Central Statistics Office (CSO), Shannon processed 16,752 tonnes of freight in 2023, marking a 23% increase compared with 13,600 tonnes in 2018. This growth reflects continued demand driven by global trade and e-commerce, even though Shannon is not one of Ireland’s largest cargo hubs. Yet despite the upward trend in freight tonnage, there is some
tension in its cargo business model. In August 2024, IAG Cargo (which operates via Aer Lingus) announced that it would close its dedicated cargo facility at Shannon by the end of that year. The company cited a need for major capital investment in the existing building, which could not be justified because the “level of cargo activity” at the airport does not support sustained growth. According to IAG Cargo, freight volumes at Shannon have fallen by roughly half in recent years and have not recovered to pre-COVID levels, which undermined the financial viability of operating a dedicated Shannon base. The impact of the closure is not only operational but also social:
the announced shutdown affects eighteen jobs, highlighting the local economic significance of
the facility. According to local
newspaper Clare Echo, from Shannon Airport Group’s perspective, this is a blow, but they remain committed to working with other cargo operators. Their statement indicated that while they regret the IAG exit, they continue to partner with firms such as DHL, UPS, and FedEx to maintain cargo operations. Strategically, Shannon occupies a special position. Its location in
the mid-west of Ireland and proximity to the Shannon Free Zone makes it attractive for logistics operations that want both international connectivity and integrated economic zones. However, the closure of the IAG Cargo facility underscores a structural challenge: while the total freight handled is growing, the scale may not justify heavy investments in cargo-specific infrastructure without stronger long- term commitments from major integrators or airlines. In sum, airfreight at Shannon Airport is increasing in volume, but
the business is under strain due to shifting economics and operator decisions. The closure of Aer Lingus/IAG’s cargo base by the end of 2024 marks a turning point. For Shannon to continue being a competitive air-cargo node, it will likely need to lean more on other operators and perhaps reimagine how its cargo infrastructure can be economically sustainable.
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