Appendices A–D.pdf

The Airport Cooperative Research Program (ACRP) conducted 31 interviews with airports, airlines, and other stakeholders to gather information on Total Cost of Ownership (TCO) for Airport Baggage Handling Systems (BHS). Key findings include:
- Top BHS characteristics: reliability, redundancy, expansion opportunity, and efficient maintenance capabilities.
- Key TCO factors: maintenance costs, lack of redundancy, and spare parts costs.
- Overlooked TCO considerations: cost for ground handling vs. BHS automation, technological obsolescence, and system outages.
- Procurement processes: design-build (DB) and Construction Manager At-Risk (CMAR) are becoming more popular, with benefits including more control and accountability.
- Mitigating risk and cost: having a design consultant onboard, a good upfront baseline design, and a steering committee or project management team can help.
- Importance of CAPEX vs. OPEX: while CAPEX is often the primary focus, some airports and airlines recognize the need to balance both to avoid hidden operational costs.
- Key Performance Indicators (KPIs): Missed Bag Rates (MBRs), bag tracking/read rates, jam statistics, and downtime are commonly used to monitor and reduce costs.