2009, Port of Huntsville Annual Report

Even during these uncertain economic times, fiscal year 2009 (FY09) provided us with an opportunity to show that together we can overcome overwhelming odds and continue to serve the community with the highest of standards and superior customer service. FY09 proved to be a year unlike any other in the history of the Port of Huntsville. The aviation industry and the entire nation were severely impacted by the economic downturn. The impact to the Port of Huntsville was significant; however, our diversity and historically sound financial management practices enabled us to continue our mission to provide multimodal transportation services and stimulate the economic growth and development of the Tennessee Valley region.

While FY09 had its challenges, the Port of Huntsville’s operating entities experienced growth and each had its own successes. Huntsville International Airport served more than 1.25 million passengers during the 2008 calendar year, the second-highest total in the airport’s history. The International Intermodal Center celebrated a record volume of 46,303 rail lifts, a 2% increase over the previous calendar year. Within the Jetplex Industrial Park, more than 675,000 square feet of building space was started or completed during FY09. The Port of Huntsville forged ahead with its $65 million, five-year capital improvement project, which included the opening of the parking deck expansion, increasing the number of parking spaces by 81%; completion of the west wing, the new home to security checkpoint; and opening of the new Paradies gift shop on the concourse. Additional construction included completion of a new 92,493-square-foot air cargo building, featuring 5,250 square feet of cold storage space; the opening of a new state-of-the-art communications center; and completion of Taxiway L.

With the onslaught of the recession, the aviation industry and the nation as a whole has had to make major adjustments. Change has become an inevitable part of our lives. We must work together to create a world in which we continue to do business, travel, and prosper. The Port of Huntsville has risen to that challenge without compromising our mission and our vision of moving you and your business to new heights. Our employees remain our biggest asset. We are proud to acknowledge that while companies nationwide implemented drastic reductions in staffing, the Port of Huntsville did not lay off one individual employed by the Huntsville-Madison County Airport Authority.

The Port of Huntsville has been a major contributor to the growth and development of the Tennessee Valley region for a number of years by providing employment opportunities, increased tax revenue for local and state governments, and first-class transportation facilities. The Port of Huntsville remains focused in its commitment to continue moving people and products forward for the betterment of our community.

Message from the Executive Director & Chairman of the Board

Mark McDaniel, Chairman Rick Tucker, Executive Director

ith the economic downturn throughout the past year, businesses and industry across the nation

felt the impact. And while the Port of Huntsville was not immune from the effects of an ailing

economy, it found itself in a position poised to continue growing and developing to meet the region’s

future transportation needs. The community within which the Port of Huntsville is located continued

to receive national accolades, such as Kiplinger’s “#1 Best City” and among Forbes’ “Top 5 Cities

for Recession Recovery.” Supporting these accolades among numerous others, the Port of Huntsville

forged ahead with its $65 million, five-year capital improvement project.

Among the most visual transformations of the capital improvement project was the completion of

the west wing – the new home to security checkpoint – located on the second floor of the terminal

building. The completion of the $5.4 million west wing marks the first of two wings near the former

connector walkway to security checkpoint. Each wing will feature 30-foot high panoramic windows

that overlook airfield operations. The east wing will be a large lobby/seating area accommodating

up to 150 people. This renovation will also significantly widen the walkway toward the new wings –

adding four times more space than the current public areas, including new restrooms, an expanded

gift shop in the terminal, and upgraded flight information display systems.

W

Madison County named theCountry’s Best Place to Live to Weather the Economy

November 2008, Forbes

Huntsville International Airport opened its new parking

deck expansion in March 2009 as a part of the capital

improvement project. The expansion, which added more

than 1,300 spaces to the existing deck, brings the total

number of deck spaces to nearly 3,000 and total public

spaces to more than 4,000. The expansion of the deck is

part of an overall $26 million parking improvement project

that includes improvements to surrounding roadways,

relocation of exit toll booths, and the addition of more exit

lanes to better serve customers.

Another welcome addition was Paradies’ new airside gift shop, Rocket City News. The all-new,

1,600-square-foot location celebrates Huntsville as the home of U.S. Space Camp and NASA with

an aerospace theme, including a life-size astronaut as the store’s central focal point. As part of

the new public waiting area, Paradies will open a new landside store – Explore! Huntsville – by the

end of 2009. The new 1,535-square-foot store will be a showcase of everything Huntsville – from

souvenirs to general information about Huntsville and the surrounding area.

Huntsville ranked 3rd among America’s Leading

Technology Cities

Huntsville named one of the Top 5 Best Cities for Recession Recovery

July 2009, Forbes

Huntsville ranked 3rd among America’s Leading

Technology Cities

Separate from the $65 million capital improvement project, other areas of growth and development

emerged at the Port of Huntsville throughout FY09. In March, Huntsville International Airport

opened Taxiway L, connecting the airport’s 12,600-foot and 10,000-foot parallel runways. The new

$8.5 million taxiway – which is 25 feet wider than the existing taxiways at Huntsville International

Airport – is a step in the overall plan to modify the west runway and air cargo ramps to a Group

VI design, accommodating the largest airplanes in existence today. The development of the new

taxiway helps to ease traffic flow and allows aircraft to easily transition between the east and west

runways, thus saving time as well as money associated with fuel cost. A unique feature of Taxiway

L is the tunnel underneath, which is a major safety component that allows traffic to travel under

the taxiway, thereby reducing the risk of vehicle incursions. The tunnel allows for uninterrupted

deliveries – such as the 12 to 14 trucks that deliver fuel daily – since trucks do not have to cross

the taxiway.

Ensuring that air travel is safe and secure is the primary focus of Huntsville International Airport.

In keeping with that mission, the airport earned the distinction of 12 consecutive years with zero

infractions in its Federal Aviation Administration (FAA) certification inspection. In addition, the

airport completed a $3.5 million security enhancement project, including a new communications

center that features a state-of-the-art, all digital system with direct feed for weather and flight

information display systems. The new center enables the Department of Public Safety to continue

offering superior security operations using some of the most advanced technology available and

features enhanced access control; large, flat-screen monitors; and an enhanced emergency

notification system. The facility is 1,500 square feet – approximately three times the size of the

former center – and features new equipment that includes several key functionalities, such as

increased zoom capability and overall picture clarity, as well as thermal imaging (night vision). The

center provides accommodations for two operators to work simultaneously and also encompasses

a conference room that can be used for emergency briefings in the event of an incident.

June 2008, Cybercities 2008, American Electronics Association

As airports around the country scrambled to keep both flights and passengers from vanishing from

their runways, the Port of Huntsville found itself in the unique position of marking the end of the

2008 calendar year with records in both passenger traffic and rail lifts. Huntsville International

Airport concluded 2008 with serving 1,254,745 passengers, a 1.2% increase in traffic over the

2007 calendar year. Similarly, the International Intermodal Center – a multimodal transportation

facility that provides one central location for companies to transfer, distribute, and store products

and services – celebrated a record volume of 46,303 rail lifts, a 2% increase in lifts over the 2007

calendar year.

Huntsville named one of Top 5 Best Performing Cities in the Country

September 2008, Milken Institute

-5-

Positioning the International Intermodal Center to continue with its record-setting trend and to

meet the transportation needs of area industry for years to come, a new 92,493-square-foot air

cargo building was completed in April 2009. The new $8 million facility features 5,250 square feet

of cold storage space and 20-foot x 70-foot double bay doors. The new development will almost

double in size the current 100,000-square-foot Air Cargo South facility where global Swiss freight

forwarder, Panalpina, has resided since 1990. Another 100,000-square-foot air cargo building

houses several carriers and freight forwarders, including Westwind Inc., DB Schenker, Fed Ex,

and UPS.

As the airport and intermodal facility continued to grow, so did the Jetplex Industrial Park. Located

in one of the fastest-growing, high-technology communities in the United States, the 4,000-

acre Jetplex Industrial Park offers a unique combination of air, rail, and truck transportation and

is divided into six sections in order to meet diverse business requirements. Among the park’s

numerous advances during the 2009 fiscal year was WestWind Technologies, Inc.’s breaking

ground on its 65,000-square-foot Huntsville Aircraft Modification & Integration Center in the

Jetplex Aviation Center East. The facility is designed to accommodate every type of helicopter

in the Army’s inventory as well as a large number of fixed-wing aircraft with sizes up to the Air

Force C-130s. Comprehensive aviation capabilities will include integration of new technologies into

existing aircraft platforms with full engineering, electronics integration, and structural modification

capabilities. The center will also offer full maintenance, repair, and overhaul (MRO) capabilities for

a broad spectrum of military and commercial aircraft.

Other developments within the Jetplex Industrial Park included the completion of the second phase

of its Jetplex Tradeport by Triad Properties. The 102,100-square-foot building, which mirrors the

first development that was completed in 2008, is suitable for light manufacturing and assembly

and/or warehouse/distribution. Both buildings offer 24-foot minimum clear heights, ESFR sprinkler

systems, skylights, 60-foot concrete truck aprons, and 9-foot x 10-foot dock-height loading doors.

The tilt-wall construction was designed to incorporate accent bands with attractively designed

storefront entrances.

Huntsville named one of the Country’s Top 5 Cities for Defense Jobs April 2009, Forbes

Following suit, Graham & Company completed phase two of its Airport Distribution Center in

Jetplex Industrial Park North. Phase two encompasses a 208,031-square-foot warehouse facility

that mirrors the first building completed in July 2007. Both buildings are divisible into 52,000

and 78,000 square feet with bays of 13,000 square feet (52’ x 250’). The building features 32-

foot minimum clearance ceiling height, concrete tilt-up construction, ESFR sprinkler systems, and

additional trailer parking.

Navistar, a Jetplex Industrial Park tenant since 2002, celebrated its 75th year of building diesel

engines with the dedication of its second plant in the park. The company’s newest plant assembles

the company’s “big bore” diesel engines for heavy-duty commercial trucks. The 300,000-square-

foot facility produces two new engines – MaxxForce 11 and MaxxForce 13 – which are designed for

International Class 8 trucks. Another Navistar plant, a 700,000-square-foot building in the Jetplex

Industrial Park, builds V6 and V8 diesel engines for pickups and vans, commercial trucks, school

buses, and RVs.

FY09 was a year of progress for the Port of Huntsville in continuing its mission to provide quality

multimodal transportation services to a regional customer base and to stimulate economic growth

and development of the Tennessee Valley region. Even during uncertain economic times, we have

shown that together we can overcome overwhelming odds and prevail. Each of the three main

operating entities had its own successes during FY09. As the nation’s economy and the aviation

industry recover from extraordinary circumstances, the Port of Huntsville looks forward to moving

you for years to come.

Huntsville named one of 10 Great Cities for Salary Growth

January 2009, Yahoo! Hotjobs

(left to right)

William H. Johnston, Jr. - Vice Chairman

Dwight Jennings - Member

Jeff Sikes - Vice Secretary

Mark McDaniel - Chairman

Betty Fletcher - Secretary/Treasurer

(left to right)

Mitch Bradley - Director, International Intermodal Center

Paul S. Kelly, Jr. - Director, Finance & Administration

Doug Kreulen - Director, Operations

Brooks Kracke - Director, Jetplex Industrial Park

Stan Hogan - Director, Capital Improvements

Richard Tucker - Executive Director

Butch Roberts - Deputy Director

Barbie Peek - Director, Marketing

HunTsVILLE-MAdIsOn COunTYAIrPOrT AuTHOrITY BOArd OF dIrECTOrs

HunTsVILLE-MAdIsOn COunTYAIrPOrT AuTHOrITY ExECuTIVE sTAFF

(left to right)

Will Culver

Bill Kling, Jr.

Richard Showers, Sr.

Tommy Battle - Mayor

Sandra Moon

Mark Russell

(seated left to right)

Faye Dyer

Mike Gillespie - Chairman

Dale Strong

(standing left to right)

Roger Jones

Mo Brooks

Jerry Craig

Bob Harrison

MAdIsOn COunTY COMIssIOn

HunTsVILLE MAYOr & CITY COunCIL

Jetplex Industrial Park Tenants

ADEPT Technologies Airport Distribution Center Perez Services ATI Firth Sterling The Boeing Company Continental AG Futaba Corp. of America Graham Bailey Properties, LLC Parksite, Plunkett & Webster, Inc. Graham & Company of Huntsville, LLC Champion Windows Cinram Cope Plastics G&K Services Huntsville Hospital Northrop Grumman Rocky Research Staples Team Worldwide Wayne’s Environmental Services

JIT Services, Inc. F&H Components Hokuriku USA Limited Innovative Sales & Marketing JIT Services, LLC Lean Distribution Liberty Transportation NXP On Semiconductors Spencer, Inc. LG Electronics Alabama, Inc. Morris South (formerly R.O. Deaderick Co, Inc.) Navistar Big Bore Diesels, LLC Navistar Diesel of Alabama, LLC Parfums de Coeur, Ltd. Prep-Tech, Inc. Raytheon SAIA Motor Freight T.H. Marine TRIAD Properties Arrowsight, Inc. New York Energy Group, LLC Turner Universal Construction Tyco Fire Products/CPVC Division Universal Lighting Technologies Woodmont Park, LLC WestWind Technologies, Inc.

Passenger airlinesAmerican AirlinesContinental ExpressDelta Air LinesUnited ExpressUS Airways Express

general aviationAviation Maintenance of HuntsvilleC-Cubed AvionicsHuntsville Flight Center (School & Charter)Signature Flight Support

air CargoAtlas AirBAX GlobalCargoluxFederal ExpressPanalpinaUnited Parcel Service

U.s. government serviCesFederal Aviation AdministrationTransportation Security AdministrationU.S. Customs & Border ProtectionU.S. Department of Agriculture

Foreign trade ZoneHuntsville Foreign Trade Zone Corporation

CUstoms Brokers / Freight ForwardersBAX GlobalExpeditors InternationalJ.F. LumpkinPage & JonesPanalpinaUPS Supply Chain Solutions

otherSenator Richard Shelby District OfficeSheraton Four Points HotelSunset Landing Golf Course

groUnd transPortationExecutive Connection

groUnd handlingATSDGSIntegrated Airline ServicesTotal Airport Solutions

rental CarsAvisBudgetDollar/ThriftyHertzNational/Alamo

airPort ConCessionsAir HostElite TravelThe GrilleHuntsville/Madison County Convention & Visitors BureauJanett’s Shoe Shine ParlorThe Paradies Shop

Industrial Properties of the South Alabama Industrial Development Training (AIDT) Graham Medical Clinic JRM Technologies Ricoh SPAN International WestWind, Inc. Jetplex Distribution Services Aerobotix, Inc. Aldridge Industries, Inc. Armstrong Relocation Co. CEVA Logistics Mtronics Multitronics VMI, LLC Okaya, Inc. PLDS Tech Masters Tyco Electronics Jetplex Tradeport Jacobson Warehouse

Huntsville International Airport & International Intermodal Center Tenants

Huntsville named one of Money Magazine’s Top 6 Places May 2009, Money

© 2009 McWhorter Communications