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Veschevo Fighter Base, 80 miles northwest of St. Petersburg, has been abandoned by the Russian military. The regional government of Leningrad controls the facility and wants to convert it into an air cargo aerodrome. Infrastructure at the aerodrome was styled to meet military needs and is weak on civilian amenities. Although Veschevo is close to the Port of Vyborg, which would facilitate intermodal transport, the seaport emphasises bulk cargo, while air cargo is typically low volume/high value. Management sees a market in serving the air delivery needs of Russia''s northern slope, an area which lacks year round ocean and ground delivery. Current needs are being satisfied by more distant Moscow area airports. An investment of $150 million is required from outside sources to convert the aerodrome to cargo use, but the government''s strategic commitment to Veschevo is questioned because of its pursuit of expanding St Petersburg''s Pulkovo airport. The case elicits discussion on market development, policy coordination, and free economic zones.