VIDEO: Miami International Airport to See Construction of Massive New Cargo Facility
Miami International Airport is set to build a massive cargo facility, the Vertically Integrated Cargo Community (VICC), to increase storage capacity by 2 million tons. The project is expected to create thousands of jobs and further boost the airport's standing as a key hub for international commerce.
Tue July 23, 2024 - Southeast Edition #16 Miami Herald & Miami International Airport
Miami International Airport (MIA) in South Florida is getting an enormous upgrade with a new cargo building expected to help meet the facility's growing international commerce demands.
The Miami-Dade County Commission approved a lease agreement July 16 with Miami Gateway Partners LLC to build a four-story cargo facility designed to increase MIA's storage capacity by 2 million tons, bringing its total capacity to about 4.5 million tons.
Known as the Vertically Integrated Cargo Community (VICC) at MIA, the nearly 800,000-sq.-ft. facility will be built on 11.9 acres of airport land at 1701 NW 63rd Ave.
The complex will be the first of its kind in the Western Hemisphere and, when completed, is set to increase the airport's total cargo capacity by at least 50 percent, the airport announced.
Scheduled for completion in 2029, the new facility could potentially bring MIA's total capacity to as much as 5 million tons, future-proofing America's busiest international freight airport until the year 2041 — 11 years ahead of projections, the South Florida airport noted in a news release.
Without this construction, MIA would begin to reach capacity at 3 million tons of cargo annually. Currently, the airport is on pace for more than 2.9 million tons of cargo by the end of 2024.
Under the new deal, Miami Gateway, as tenant and developer, will invest a minimum of $400 million for the property. The lease is for 40 years and over that time, the firm will pay at least $512 million in rent and other revenue to the county's aviation department, noted the Miami Herald on July 20.
The VICC, scheduled to open in 2029, is also expected to have a massive local economic impact by yielding 8,500 temporary jobs earning a total of $500 million in wages during five years of design and construction, Miami-Dade County Mayor Daniella Levine Cava and District 7 County Commissioner Raquel Regalado said in a joint statement. Another 2,500 permanent jobs earning $100 million post-construction will be created.
Plans call for 60 percent of the design and construction firms involved in the project to be headquartered within Miami-Dade, and those contractors are required to hire registered small businesses during all phases of the project.
"This is great news for our community and our economy," said Levine Cava. "MIA is our largest economic engine, generating thousands of jobs for our residents and significant income for many of our leading industries, from tourism to small businesses. MIA continues to increase its ranks among U.S. airports, and worldwide regarding cargo volume.
"With the construction of this unprecedented, state-of-the-art air cargo facility now on track," she added, "the sky is the limit for where MIA can lead the air cargo industry globally after consecutive record-breaking years in cargo growth since 2020."
Rendering courtesy of Miami International Airport
Known as the Vertically Integrated Cargo Community (VICC) at MIA, the nearly 800,000-sq.-ft. facility will be built on 11.9 acres of airport land at 1701 NW 63rd Ave.
Latin America Shipping Boosts MIA's Record Commerce
The Miami Herald reported that the agreement comes as cargo commerce at MIA is booming. In 2023, the airport set a new record with 2.78 million tons of cargo moving through the hub, about 1 percent more than the prior year. Most of that, about 2.2 million tons, were international goods.
In 2023, Chilean airline LATAM began cargo routes between Miami and Brasilia and increased its Miami-Florianópolis service from two to three weekly flights.
The airline is betting big on the Magic City.
"Our biggest cargo market is Miami," said Martin St. George, chief commercial officer for LATAM, during an interview last year with the Miami Herald.
Additionally, DHL Express started shipping from Miami to Argentina last September with six cargo flights a week between MIA and Ezeiza International Airport in Buenos Aires. Each of those flights can transport up to 52 tons, or 104,000 lbs., of cargo. After landing in Buenos Aires, the planes go on to Santiago, Chile, before returning to MIA.
The Miami newspaper said that that addition came after DHL Express launched direct service from Miami to Brazil in 2022, tapping into growing business and commerce between the United States and Latin America.
Colombian airline Avianca also operates eight Airbus 330 freighters out of Miami to Latin America and considers MIA to be its cargo headquarters.
In May, ahead of Mother's Day, the airline said it transported more than 400 million flower stems, about 18,000 tons of cargo, from Colombia and Ecuador to the United States. About 95 percent passed through Miami International.
Miami-Dade Could Invest Up to $9B On Airport Upgrades
Regalado said that Miami-Dade County has made cargo capacity expansion at MIA a priority over the last few years to ensure a reliable supply chain for area residents.
"The VICC will significantly enhance our airport's cargo capabilities and establish a new sustainable, resilient infrastructure benchmark. I am proud to support this visionary project, which will drive economic growth and solidify Miami-Dade's position as a global hub for commerce."
Beyond its enormous impact on job creation and local business revenue, the VICC promises to be a sustainable, environmentally friendly facility with a silver Leadership in Energy and Environmental Design (LEED) certification and a silver certification from Global Infrastructure Basel under SuRe standards for sustainability and resiliency.
But the investments in support of Miami International are not likely to end any time soon.
"The VICC is one of the many historic investments being made at MIA to modernize and transform every facet of our operations … everything from maintenance upgrades and renovations in our terminal to the construction of a new parking garage, four-star hotel, and expanded concourses," Cutié said. "In total, nearly $9 billion in capital improvements and upgrades are scheduled for completion over the next 10 years to elevate MIA's position among the premier airports in the world."
