"Airports have always been important, and they are becoming increasingly important as regions fight for economic development," says Eliot J. Lees, vice president at SH&E, a Boston-based international air transport consultancy. "The cargo element and those industries whose products need to be shipped by air may want to be near a major airport. You see a lot of major airports increasingly looking to develop multimodal connections and developing good logistics with road and seaport access. Companies that have highly sensitive products — such as electronics, the auto industry and the pharmaceutical industry — like to be near airports that have good cargo service."
      Lees cites Sharjah International Airport (SIA) in the United Arab Emirates and its SAIF Trade Zone as an example of a successful niche airport that has promoted logistics development. ITM recently cited SIA as its Best Global Airport for 2005. SIA is growing too, with a $62-million expansion aimed at boosting annual capacity to 8 million passengers.
      "Sharjah has attracted companies, especially from India and Pakistan, that are looking to serve the European market," Lees says. "The SAIF Trade Zone provides a forward logistics center from which they can serve Europe within a day. The U.A.E. has a national strategy to use the airport to attract businesses to locate in the free trade zone."
      Almost $6 billion in projects is planned or under way at airports in the U.A.E., including the world's largest ongoing airport expansion project. Dubai International Airport's $4.1-billion expansion is set for completion in 2007. The project includes a new third terminal, two concourses, a huge cargo terminal and the Dubai Flower Center, a regional logistics hub for flowers and other perishables set to open for business during the fourth quarter of 2005.
      The country's airline, Emirates, is also busy, building a $353-million Engineering Center on a 55-hectare (136-acre) site on the north side of Dubai International. The building, set to open in 2006, will handle the company's growth as it projects to more than double its fleet of 78 planes over the next seven years. Emirates is also building a large jet engine test facility in Dubai.