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Houston Airport System December 13, 2006
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His story began as a refugee of war in 1979.
Two decades earlier Vic Tan’s parents had been forced out of their native China by warfare. They resettled in Vietnam, but were once again forced out of that country by political unrest in 1975 – only this time, they were traveling with their six children.
Four years later they immigrated into the United States, specifically into Houston. It was here that the Tan family first opened their 4,000 square-foot grocery store of mostly Asian products in 1984.
Since then, the close-knit family has never looked back. Today, Vic Tan, 47, has assumed the role of president in his family’s business, the Viet Hoa International Market.
A far cry from its humble beginnings, Viet Hoa now sits on a 100,000-plus square-foot facility in the heart of southwest Houston. This mega-store rivals the likes of established retail chains such as HEB, Fiesta and Randalls by offering an unparalleled selection of Asian and other international groceries.
In this industry, maintaining a competitive edge means counting on a reliable logistics network - especially when you take into account that most of the products sold at Viet Hoa are imported from other countries.
Tan says the quicker he can restock his store’s shelves, the larger his profit margin will be. That’s why he’s so excited about the recent construction begun at Bush Intercontinental Airport.
Earlier this year, the Houston Airport System – which manages Bush and Hobby airports, as well as the joint-use civil/military airport Ellington Field – began construction on a new 61,000 square-foot-plus perishables facility.
This facility will double Houston’s perishables air cargo capabilities many times over and that is something local business owners are definitely looking forward to. Tan says, imports like tilapia and shrimp are better when received fresh and not frozen. |
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 © Houston Airport System Perishables are big in Houston. |
“To grow the seafood market in Houston we really have to focus on fresh products instead of frozen ones,” he noted. “Logistically speaking, anything faster is better. The faster we can get a product into the market, the fresher it will be.”
Currently, Tan, like most of the other perishable importers in Houston, has to truck his merchandise in from cities like Miami and Los Angeles, via a wholesaler. Among the most popular items sold at his store are items like lemon grass and yu choy – items he says can’t be found at conventional grocery stores.
“This country has a different taste. For someone who is used to a certain culture and taste, having their native flavor is important,” he added. “We offer that.”
Direct flights into a Houston perishables facility would make freshness a regular commodity, many maintain. Including Michael Almavan, operations manager for Southwest Seafood, who says the city is the ideal location for such an expansion.
“Having a perishable facility at the airport is critical; otherwise we just could not do it,” he said. “(The new facility) is definitely a good idea; we need to rely on the carrier’s ability to handle and to bring in the product…because there is also a time concern issue with the freshness of the product.”
Southwest Seafood is one of the principal importers of fresh seafood and fish in Houston. They have been in the business for over a decade now and generate revenues in excess of $10 million annually. Most of their products, which are approximately 70 percent fresh and 30 percent frozen, are sold to local restaurants and hotels.
“Being able to rely on a bigger facility will ensure that the product will be kept properly,” Almavan added. “(Businesses) won’t have any issues where there is not enough cooler space. We…could (definitely) rely on a new facility.”
Importers of flowers are also excited about the potential growth of the perishables market in Houston. They see the addition at Bush Airport as a way to obtain better selections and cheaper prices.
Jan Hall is the president of Allied Florists in Houston – a locally based professional trade association of retail florists, wholesale florists and growers – and she says the opportunities for Houston are many.
“Houston is such a wide open market,” Hall said. “(We are) right on the coast where shipments come in, and can become an actual hub, or export area, for imported products. I think that it’s a win-win situation for everybody.”
According to the 2002 U.S. Economic Census, there are over 100 local florists in Houston area. These business owners generate in excess of $46 million annually and employ more than 590 individuals. In 2005, floriculture item sales at retail outlets across the nation reached an all-time-high of $19.4 billion.
These flowers make it into the local Houston economy mostly by truck after coming into the country through Miami. Colombia and Ecuador are the top two flower exporting countries into the United States, accounting for roughly 78 percent of the flowers imported into the nation.
At Bush Intercontinental, the new perishables facility, which is slated for completion by the end of next year, will span over 61,000 square-feet and will include easy access to the airport’s one-stop-shop federal inspections services facility. This makes the process of clearing customs more rapid.
Airport authorities maintain that while cities like Miami have traditionally been the ports of entry for this type of cargo, Houston is steadily becoming a more convenient option.
“We don’t have any of the geographic constraints that those cities have,” said Rick Vacar, director of the Houston Airport System. “For the most part, cities like Miami are literally land-locked and can’t grow their airports. Houston has ample space for expansion and provides a more central link into the United States.”
Manouchehr Khodadadian, who owns and operates two of the most popular flower shops in the city, says having flowers trucked into Houston from Miami adds up to 24 hours to the delivery process. Bringing those products in by air costs three times as much.
His 38,000 square-foot, open-air, flower-shop-market in downtown Houston imports more than 5 million flowers annually. Most of these stems are exported from Colombia and Ecuador. Khodadadian says freshness is of the utmost importance.
“You get more shelf-life out of fresh flowers and customers like their flowers to be fresh,” he said.
Hall agreed, adding that a perishables facility in Houston would provide countless opportunities.
“It couldn’t do anything but help (the airport) and give the florists a bigger market to choose from,” she said. “I think once growers see the success of things coming into Houston they are going to be very eager to ship their products into Houston as well.”
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