Tuesday, April 2, 2013

US Airport Boosts Freight and Logistics Capacity with 3PL Investment

Consolidation and Expansion Results in State of the Art Facilities
Shipping News Feature

US – Lambert-St. Louis International Airport (STL) has received a welcome boost to its drive to increase freight and logistics activity, with the April opening of a brand new 18,600 square metre facility for 3PL provider, TAGG Logistics at Free Trade Zone 102, adjacent to the airport. The new logistics centre replaces TAGG’s three current sites around the city, improving its efficiency and adding 35% to its capacity. It will feature high-specification bulk distribution space, multiple kitting and assembly lines, a high-volume order-picking system and a state of the art warehouse management system. TAGG Principal Tod Yazdi said:

“Our new facility will be one of the most advanced third-party logistics centres in the Midwest. It perfectly positions TAGG Logistics for growing healthcare companies and others that need to take logistics to the next level. We strongly promote St. Louis and the Midwest as an ideal location for distribution. This is also our first operation in a free trade zone, and it will add a new dimension to our capabilities for clients particularly in sectors such as high-end medical devices, where we are targeting growth.”

TAGG Logistics has successfully carved itself a niche as a third party distribution, fulfilment and logistics specialist for mid-sized manufacturers. Its current business centres on order fulfilment for clients selling healthcare and consumer products via e-commerce, catalogue and direct response TV; distribution to major retail outlets; and added-value services such as re-packing and labelling.

Some 60% of TAGG’s freight flows are already international. Although most of its inbound freight currently arrives by ocean container, its ambitions to further develop its healthcare business are likely to see it move further into premium product lines whose default transport mode is airfreight. At the same time, TAGG’s flourishing fulfilment business is driving steady growth in small packages to consumers, a growing proportion of whom (already 20%) are located outside the USA. STL Cargo Development Director David Lancaster commented:

“We are delighted that TAGG is relocating within the airport logistics community, and investing so heavily in its future development here. It’s a vote of confidence in St. Louis and its airport as an ideal location for domestic and international logistics. TAGG’s presence adds considerably to the collective resources and capabilities within the airport cluster, and will contribute to our drive to regenerate air cargo traffic levels through STL.”