AIR CARG O WEEK
WORLD AIRPORTS
CROW HOLDINGS, MKE BUILDS CARGO HUB RESCUING SHIPMENTS FROM CHAOTIC ILLINOIS AIRPORTS
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Jack Rabenn, Vice President, Industrial at Crow Holdings
ilwaukee Mitchell International Airport (MKE), together with Crow Holdings, kicked off construction of its new state-of-the-art air cargo facility with a ground-breaking ceremony in February last year. The new facility aims to provide a more efficient alternative for businesses
looking to avoid the congestion, delays, and higher costs associated with operating at Illinois airports. Crow Holdings, a privately-held real estate investment and
development firm founded in 1948 and based in Dallas, Texas invests in and manages warehouses and logistics centres. The project will transform a significant portion of the former 440th Airlift Wing, now known as the MKE Regional Business Park, into a 33,700 sq m air cargo facility featuring a dedicated air cargo building, a new Milwaukee County highway maintenance facility to support both county and state transportation needs, and enhancements to adjacent
taxiways to improve accessibility for wide-body cargo
aircraft. The facility will have the capacity to accommodate five B747-400 aircraft at the same time and expects to generate over $1.3 million in annual aircraft landing fees as well as over $1m in annual ground lease rents and fees. According to Jack Rabenn, Vice President,
Industrial at Crow
Holdings, “this building is effectively a new port of entry into the US. Whether it is existing players in the US cargo sphere, or new entrants from abroad, there is a need for modern air cargo infrastructure in America and that is what we are offering. I think we can be a model for what a true public-private partnership can look like in an American air cargo infrastructure landscape that is quickly becoming dated compared to Europe, Asia and the Middle East. “We are a way to serve the incredibly important ORD Gateway
market, without being at heavily congested/expensive ORD airport.” The project will serve as a legitimate option for cargo tenants
“Milwaukee offers uncongested airspace and runway access, with only 55% of capacity currently utilised.”
looking to avoid the much higher congestion and costs associated with centring operations out of O’Hare. MKE has a population of nearly 13 million people within a two-hour drive time in Southeast Wisconsin and Chicagoland. The existing infrastructure within MKE will allow tenants to use the same carrier, cargo, handler and freight forwarders that they would in O’Hare, all while serving the same end users.
Tangible benefits What strategic outcomes does Crow Holdings expect to achieve by aligning the facility’s launch with heightened industry communication in the coming 6–8 months? Rabenn says: “The key for us is awareness among all stakeholders
– freight forwarders, carriers, and cargo handlers. For this building to be a success all those parties need to be at the table. We firmly believe (and can show) that there are tangible benefits to each of the stakeholders mentioned – both to increase profits, pass some savings to customers, and elevated service levels. When you couple this with the huge manufacturing base that is in SE Wisconsin already, and currently being leaked to ORD, there is a massive opportunity for some first movers to consolidate or grow its market share at the expense of competitors that are slower to react.” Crow Holdings has been engaged in the development of this
project for more than four-and-a-half years, a period during which the business has observed substantial shifts in the global logistics environment. The rapid expansion in airfreight demand during the COVID-19 pandemic demonstrated the essential role of air cargo in maintaining supply chains during periods of disruption, while the subsequent introduction of tariffs generated significant volatility and uncertainty across international trade flows. Throughout these
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fluctuations, one fact has remained consistent: global markets continue to require reliable air cargo services, and this requirement is not expected to diminish. At the same time, the cost pressures and operational congestion at
major gateway airports, most notably Chicago O’Hare, have continued to intensify with no foreseeable resolution. These conditions have created an increasingly challenging operating environment for freight users dependent on congested hubs. In this context, the proposed facility is positioned to benefit from favourable macro-economic dynamics that are reshaping the sector. Certain categories of goods must travel by air due to time sensitivity, product characteristics or inherent supply-chain risks, and such demand extends well beyond the fluctuations of ecommerce volumes. The region is already served by a number of prominent international manufacturing organisations that rely heavily on air freight, and this profile underscores the scale and durability of demand. Milwaukee and the wider south-east Wisconsin region are
particularly well placed to take advantage of these developments. The area possesses the highest concentration of manufacturing employment in the United States, a competitive advantage that has been further strengthened by recent trends in re-shoring and domestic production. As manufacturing activity continues to migrate back to the United States, the requirement for efficient, regional air cargo capacity is likely to grow, positioning this development as a strategically significant opportunity within a changing national and global logistics landscape.
New capacity Rabenn is confident about what market advantages can a company gain by publicising new capacity well ahead of operational activity. He says: “For starters, the facility will be ready September 2026
– that is very soon. With us being under construction now, there are a wide array of efficiencies (cost and time) available to tailor a space specifically to a user’s needs. At a macro level, to make this facility work, we need an entire supply chain to shift. We are not just needing to convince “ABC Widget” company to take space – we need to have alignment amongst at least three different companies that this makes sense. “Given this level of complexity, the more people that know about
this, the better. We need different groups talking about this project being a win-win for everyone. “It is all about operational efficiency. Schedule is money. Goods
can get where they need to be, when they need to be there.” Milwaukee offers uncongested airspace and runway access,
with only 55% of capacity currently utilised, providing about thirty-nine operations per hour and supporting modern wide-body aircraft. The market benefits from a well-established trucking network, allowing customers to integrate with their existing logistics partners and maintain the same forwarders and carriers. This produces fewer handling points for cargo that originates in or is destined for Milwaukee, while trucked freight continues along familiar and efficient transportation corridors. The facility’s modern height, depth and construction make it well suited for cold chain, pharmaceutical and other specialised uses requiring advanced building specifications. In addition, contemporary power and fibre infrastructure enable seamless adoption of emerging technologies, including sustainable and energy-efficient systems.
Leadership The question as to how leadership can ensure that messaging around technological advancements translates into tangible business interest.
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