The Puerto Rico Life Sciences Air Cargo Community (PRLSACC) is enabling Puerto Rico to become the ‘Medicine Cabinet of the World’.
The Puerto Rico Life Sciences Air Cargo Community (PRLSACC) was set up in 2023 bringing together all parts of the supply chain with the objective of making the US island territory the premier hub in the Americas in the healthcare/medical field.
It is bringing together all parts of the supply chain- airlines, airports, forwarders, integrators, pharmaceutical and medical device manufacturers, ground handlers and haulers.
Also present are 12 of the top 20 medical device manufacturers, whose products include pacemakers, implantable defibrillators, surgical instruments, lab devices, dental equipment and vision correction.
What’s more, Puerto Rico has been designated a bio tech hub by the Biden administration, with the task of fast-tracking the discovery, development, manufacturing, and supply of next-gen biotech and medical device products.
AJOT spoke to Jonas van Stekelenburg, advisor on pharmaceutical and medical device airfreight logistics to Puerto Rico’s Department of Economic Development and Commerce (DEDC), on the work of the PRLSACC and the latest developments at the hub.
Air Cargo Connectivity
A key element in Puerto Rico emerging as a major air logistics hub for the life sciences vertical is connectivity.
Rotate Group, an air cargo consultancy, forecasts a 24% year-over-year increase in Puerto Rico’s life sciences exports, during the next three years, highlighted by 30% annual gains in temperature-controlled medicines. Exports of medical devices are projected to grow 14% on an annual basis.
Such growth requires “the best quality air cargo (services) you could have”, van Stekelenburg noted.
According to the latest figures from Rotate, capacity grew 6% from January to October, versus the same period in 2023 with September and October recording gains of 14% and 20% respectively.
The leading carriers offering export capacity out of Puerto Rico are FedEx, UPS, Atlas (Amazon), ABX (DHL), Amerijet and Emirates.
In October this year, they were joined by startup carrier Global Crossing Airlines (GlobalX), which has teamed up with digital freight exchange, Airblox, to launch a cargo service between Chicago O’Hare and San Juan, Puerto Rico.
GlobalX is flying an Airbus A321 converted freighter on the route three times per week.
Airblox highlighted that three-quarters of U.S.-made pharmaceutical products are exported out of Puerto Rico, and drug companies have major R&D and production sites in the Midwest. Indianapolis, for example, is a large pharmaceutical hub and only two and a half hours from Chicago by truck. Abbott Laboratories is headquartered in Illinois.
Ahead of the launch, Airblox board member, Neel Jones Shah, underlined that there was no freighter capacity between San Juan and Chicago, particularly for express service with everything flowing through Cincinnati where DHL has a hub or Miami and trucking in the winter can take several days.
“There’s a lot of demand in the Midwest, going into Puerto Rico and coming out of Puerto Rico to the Midwest. Hopefully we’ll have this airplane sold out very soon, then we’ll be able to add even more flights.”
He concluded: “There’s a lot of recurring traffic in this market. It’s a market where people are sending medical components down to be assembled into final goods, day in and day out, or they’re sending automotive parts or forklift parts because there are automotive factories, and Toyota has a big forklift factory in Puerto Rico.”
Center of Excellence and Expertise
Aside from the drive to strengthen the island’s air connections with key markets, the PRLSACC is also focused on developing the Puerto Rico hub as a center of excellence and expertise in pharma handling with dedicated facilities.
“The PRLSACC is proactively addressing the challenges of maintaining cargo integrity through a series of strategic initiatives. Dedicated committees focus on identifying areas for improvement and advancing educational efforts to ensure that sensitive cargo is handled with the utmost care,” van Stekelenburg explained.
“The push towards widespread CEIV certification among logistics providers is a testament to this commitment, aiming to elevate the overall quality of the logistics chain and reinforce Puerto Rico’s standing as a premier logistics hub for life sciences products.”
In March this year, forwarder ETH Cargo became the first member of the PRLSACC to achieve IATA’s CEIV Pharma certification.
In June, FedEx announced that both its ramp operations at Puerto Rico’s two airports in San Juan (SJU) and Aguadilla (BQN) had received the CEIV Pharma certification.
In 2022, FedEx inaugurated a state-of-the-art temperature-controlled room at its Ramp of Operations at SJU. It has also extended a long-term lease agreement at BQN with dedicated space for active containers, acquired new temperature-controlled trailers, and implemented its SenseAware technology, which provides enhanced monitoring and intervention options.
Forwarders Expeditors and Prime Air, SJU cargo handler, GMD and American Airlines are also CEIV-certified while other PRLSACC members are expected to be so shortly, van Stekelenburg added.
He went on to identify several key trends that are emerging in the global life sciences logistics market, including increased demand for cold chain solutions, greater personalization of medical treatments, AI and autonomous systems and the need for sustainability and resilience in logistics operations.
These initiatives are not only preparing Puerto Rico to compete more effectively in the global market but also ensure that the island remains a preferred logistics partner for life sciences companies, van Stekelenburg observed.
‘Medicine Cabinet of the World’
Asked whether more than 1,000 miles away to the north-west, in Miami, the aim of the city’s airport (MIA) to become an air cargo hub for pharma serving Latin America was impacting Puerto Rico’s own ambitions, he replied:
“We don’t think so. Puerto Rico is primarily a manufacturing hub and now also a logistics hub. The life sciences industry represents 70% of the island’s exports and 35% of its GDP. Puerto Rico’s remarkable growth in life sciences has positioned the island as the largest biopharmaceutical exporter of any US jurisdiction, with exports to over 120 countries. It’s for this reason that the island, gaining the title the medicine cabinet of the world.”
He underlined that this expansion has showcased Puerto Rico’s ability to handle complex logistics operations, especially when it comes to the distribution of pharmaceutical and medical products via air cargo.
“With an increase in both the volume and frequency of cargo flights, Puerto Rico has become a critical junction in the global supply chain, reinforcing its reputation not just as a production center, but as a pivotal hub in healthcare logistics,” van Stekelenburg concluded.
