Relocating Operations Could Cost Over MX$100 Million: Estafeta

Estafeta estimated that moving its air cargo operations from Mexico City International Airport (AICM) to another terminal would cost it about MX$100.5 million (US$5 million), in addition to the suspension of its delivery and collection services for at least one month and a half.

“To the initial costs, we should add those that derive from the termination of contractual relationships with several clients and suppliers, for whom moving operations to an airport other than AICM would not be acceptable for diverse reasons. These contracts, which in many cases are multi-year commitments, contemplate high compensation penalties, which would have to be paid. Among these contracts, there are some from the public sector,” states Estafeta.

The delivery and logistics company would also have to pay for the modification procedures and related permits, says Estafeta according to Reforma.

A leaked preliminary draft reports that AICM will be closed “for the operations of concessionaires and permit holders that provide national and international scheduled and non-scheduled air transportation services to the public, exclusively for cargo,” as reported by MBN.

The relocation of Estafeta’s cargo operations requires facilities for its operational infrastructure, with a similar surface that it currently occupies at AICM. These facilities are not available at AIFA and must be built, says the company, for which 90 business days is not a viable term given the required characteristics.

The cost of the construction of this new infrastructure is about MX$35 million (US$1.7 million), as well as the installation of operational infrastructure designed and manufactured specifically for the new space, such as conveyor belts and automated equipment, which make up another MX$20 million (US$1 million).

“It is important to mention that it is not possible to use the current AICM infrastructure, since it must be designed ad hoc to the specific dimensions of the new unit. This is without considering the terrible economic, legal and social effects that would be generated for tens of thousands of users of the messaging service as a consequence of stopping operations at the AICM, without starting elsewhere in an orderly and planned manner,” says Estafeta.

The Mexican company would also need to further invest in last-mile logistics vehicles to operate in a different airport and continue meeting with the delivery times it promises to clients. This investment represents about MX$40 million (US$2 million) as it would need an additional 40 vehicles, as well as an additional MX$3 million (US$150,000) monthly for operative expenses.

Estafeta’s Operations at AICM

Estafeta operates courier and parcel services, ground transportation and air cargo at AICM. In Mexico City and its metropolitan area, the company delivers and collects about 250,000 shipments, from which 35% must be delivered within a maximum of 24 hours within the zone.

“AICM is a logistics hub for Estafeta that also works as an exchange center, through which an average of over 70,000 shipments are handled daily. All operations are carried out at night since this is necessary for on-time deliveries to the final recipient during the day," Estafeta says.

While the Mexican government says it will ban cargo operations at AICM to improve mobility for passengers, Estafeta’s facilities are at “a considerable distance” from terminals 1 and 2. The distance, together with night operation, prevents Estafeta from interfering with passenger air travel activities, the company says.

Estafeta operates four aircraft that carry out night flights every day. The company’s jets stay at AICM’s platform for a maximum of 30 minutes, Estafeta says. Operations at the company’s facilities at AICM employ 120 people, from which 95% live close to the airport.