Through the fence agreements: What they are and why they matter for businesses

Through the fence (TTF) agreements are a type of agreement between two neighboring landowners, particularly airports and adjacent businesses. In a TTF agreement, a non-airport entity, such as a manufacturer or a facility, would be permitted to use airport facilities, like runways or taxiways, to transport goods or services back and forth to their own facility.

TTF agreements can be beneficial to both parties involved. For airports, TTF agreements can help generate revenue while also building relationships with local businesses. For businesses, TTF agreements provide access to the airport`s resources, which can be a significant advantage in terms of transportation and logistics.

TTF agreements typically allow a non-airport entity to conduct limited operations on airport property, such as loading and unloading cargo or parking aircraft. In some cases, they may also allow for the construction of facilities or infrastructure on airport property. However, it`s important to note that TTF agreements are usually subject to strict regulations and requirements, especially regarding safety and security measures.

One of the most significant benefits of TTF agreements is increased efficiency. By utilizing airport resources, businesses can significantly reduce transportation costs and time. For example, a TTF agreement with a nearby airport would allow a manufacturer to move goods between their facility and the airport more efficiently, without having to rely on outside transportation providers.

TTF agreements also offer a competitive advantage. By having access to airport resources, businesses can improve their supply chain management, especially when it comes to just-in-time (JIT) delivery of goods. JIT delivery enables businesses to reduce inventory costs, minimize waste and improve their overall efficiency.

In addition, TTF agreements can be a significant advantage for businesses looking to expand their reach and penetrate new markets. By having access to an airport`s resources, businesses can more easily transport goods across the country or even globally. This can help businesses to tap into new markets without having to invest in expensive transportation infrastructure or rely on third-party providers.

In conclusion, TTF agreements offer significant benefits to both airports and businesses. For businesses, TTF agreements provide access to airport resources, which can improve their efficiency, competitiveness and market reach. For airports, TTF agreements can help generate revenue and build relationships with local businesses. However, it`s important to note that TTF agreements are subject to strict regulations and requirements, especially regarding safety and security measures. As such, it`s important for businesses and airports to work closely together to ensure that TTF agreements are mutually beneficial and compliant with all relevant regulations.