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Newsroom
By Houston Chronicle
October 9, 2009
Houston may be a growing global trade hub, but when it comes to flower power, no one can top Miami.
That may soon change.
After years of courting the international flower market, Houston airport officials and their partners are ready to be a thorn in the side of the Miami airport. The South Florida facility controls a dominant 86 percent of the bouquet business in the U.S., importing $739 million worth of flowers last year.
But a cargo facility opening in November at Bush Intercontinental Airport plans to offer some competition.
Freight forwarder Tradewinds Cargo Handling will fly flowers to the $5 million refrigerated building erected on airport property. Officials hope that the 61,484-square-foot facility built two years ago to temporarily store roses, carnations and other flowers will help the city compete with Miami, the country's floral import capital, bringing investment and jobs to Houston.
The Florida airport also imports 71 percent of all perishables flown into the nation including fresh fish, fruits and vegetables.
Beyond flowers
Houston airport officials have visions of not only South American flowers but Peruvian asparagus, Argentine berries and other Latin American products. They'd be unloaded from airplanes and stored in this new cooler-filled facility before being inspected and fumigated at nearby federal facilities.
“You can just imagine what kinds of fruits and vegetables and exotic things you might start to see on the menus and at the grocery store that consumers have never had access to before,” said Robert Wigington, deputy director of marketing for the Houston Airport System. “For a consumer, we think it's a very exciting possibility — not only new things but also getting things faster, fresher.”
Genaro Peña, Houston Airport System marketing director, acknowledges that Miami has been the traditional gateway for both passengers and air cargo to and from Latin America. That stems in part from the network of flower distributors, importers and consolidators that have set up shop in Miami to be near the airport.
“Most people already have their established infrastructure via Miami,” said Giulio Battaglini, vice president of sales for JetPro, a company based in San Francisco that transports flowers and other goods to major U.S. retailers. “In a down economy, people aren't willing to invest in new offices and new infrastructure when what they have is already working.”
JetPro officials plan to tour the Houston facility to see if it makes sense for them to ship flowers to it.
Flower distributors like Greenleaf Wholesale Florist based in Brighton, Colo., which has five stores in Texas but imports flowers through Miami, would have to change some of its operations to use the Houston airport.
“That's OK if in the long run it saves us some money,” said William Armellini, Greenleaf floral logistics and sourcing manager in Miami.
Convincing customers to make that change could be tough because companies are accustomed to receiving their flowers from Miami. Flowers are typically flown from South American growing regions to Miami and then distributed by truck to U.S. retailers. It can take a few days for these flowers to make it to store shelves in Houston.
“We don't have any problem with that at all,” said Hussein Saatsaz, manager of Houston's Fannin Flowers.
Less shelf life
But it is a process that shaves days off the shelf life of a bouquet.
“We're eliminating that expense and transit time,” said Kerry Galegher, Tradewinds director of the new facility. His company, owned by New Jersey-based Group One Investments, leased half of the building that was constructed by Dallas real estate developer Trammell Crow Co. Tradewinds will start bringing in flowers from Bogotá in November and then expand to other flower-growing area s.
Houston is not the first city to try to snag some of Miami's business.
In April, a 12,700-square-foot, $1.1 million refrigeration facility opened at Los Angeles International Airport to handle flowers from Colombia and Ecuador.
MidAmerica St. Louis Airport began importing Colombian flowers to its 19,000-square-foot warehouse facility last year but put the business on hold for more than a month during the slow summer season.
For an airport that didn't move much cargo until now, the flower business is paying off. “We're just beginning,” said Tim Cantwell, airport director.
“We're growing it one flight at a time, one product at a time.”
Right next door
Houston's advantages include that its new cargo center is next door to all of the inspection and fumigation facilities needed to import perishables, its promoters say.
“With our one-stop shop where all of our federal agencies are in close proximity to the facility, that is a real selling point,” said Eric Potts, interim airport director.
Galegher said the Miami airport's federal facilities are blocks away.
He said this region not only has plenty of consumers, but Houston-area manufacturers make products needed by South American buyers, such as energy industry goods. So airplanes won't return to South America empty.
Continental Airlines could also use the facility to export cargo. “We are looking at a bigger role for Continental,” Continental spokeswoman Kelly Cripe said.
If the facility proves successful, it could create up to 20 jobs to start and have a direct economic impact of $4.4 million annually, according to a study by University of Houston professor Steven Craig.
“It's an important step of growth for our regional economy,” said Jeff Moseley, president and chief executive officer of the Greater Houston Partnership, which recently organized meetings for those interested in using the facility. “Houston is emerging as a mid-America hub.”
Not sweating in Miami
Houston's entrance into the perishable market doesn't worry Miami officials.
“We wish the folks at IAH the best of success,” Miami International Airport marking director Chris Mangos said.
Houston officials figure they can fight flower to flower with their Florida counterpart.
“There are a lot of naysayers out there,” airport marketing director Peña said. “When you look at 60 to 65 years of being the dominant player in Latin America ...”
“You have a swagger about you,” interim executive director Potts said, finishing Peña's sentence.
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