HKIA stays ahead as cargo hub and supply chain integrator of China

(HONG KONG, 21 March 2005) - Airport Authority Hong Kong (AA) today hosted the first Hong Kong Air Cargo Forum, taking the lead in the air cargo industry to ensure sustainable growth to capitalise on rising demand.

Working on the theme "Staying Ahead", AA and its air cargo industry partners met to share development plans and discuss how best to maintain Hong Kong International Airport's (HKIA) premier position as the region's obvious choice of freight hub, in the face of spiraling demand and growing competition from airports in the region.

In a keynote speech at today's Air Cargo Forum, AA Chief Executive Officer Dr David Pang emphasised HKIA's multi-faceted role as a key supply chain integrator to China. He said: "In today's competitive business world, supply chain will replace individual firms as the effective competing units.  As part of the efficient supply and distribution system, HKIA's success builds on our capability to provide a total solution to our customers, with state-of-the-art facilities, modern management systems and the most experienced logistics expertise in providing the fastest speed, lowest cost and highest reliability in cargo handling." 

Dr Pang added that with our home market redefined to cover the Mainland, HKIA will strive for better connection to the world, and to enhance our competitiveness to capture this rapidly growing market."

AA Commercial Director Mr Hans Bakker said: "The continuous strong growth in Europe, China, the US and Asia have contributed to Hong Kong's record air cargo throughput of 3.1 million tonnes last year.  Express cargo, as one of the key drivers, has increased its market share from 7.9% in 2002 to 9% in 2004.  The increasing importance of shipping goods by air is also demonstrated by the increase in external trade value from 28.6% in 2002 to 32.4% at $1.3 trillion in 2004. "

Mr Bakker added: "With abundant growth potential in the region, we will work together with the industry to ensure all parties will benefit.  AA will see facilities are in place to meet this growth.  Initiatives include investing $100 million to build four additional cargo stands, increasing the total number to 25 this year."

Since 2004, a number of investment projects have been announced, demonstrating the confidence of the industry in the growing air cargo demand at HKIA and their long-term commitment to support Hong Kong as the premier air cargo hub. AAT has invested $1.75 billion in an expansion plan to increase its cargo handling capacity to 1.5 million tonnes by 2006. In less than ten months after unveiling its $780 million Central Asia Hub at HKIA, DHL is already planning to accelerate expansion. Hactl has also undertaken a number of enhancement initiatives such as the Downtown Terminal, the 1,725 sqm Livestock Handling Centre, the Air Cargo Consolidation Centre and e-initiatives.   

Senior executives from Hong Kong Air Cargo Terminals Limited (Hactl), Asia Airfreight Terminal (AAT), DHL, Cathay Pacific and Dragonair presented their development plans to strengthen Hong Kong's air cargo handling capability.  These included boosting efficiency by leveraging Hong Kong’s leadership in ICT (Information and Communications Technologies), expanding facilities, enhancing service standards, providing specialist cargo-handling services, operating air cargo consolidation centres at the Pearl River Delta, and improving air, land and sea connectivity with the Mainland. 

An open panel including senior executives from Hong Kong Shippers Council, Hong Kong Exporters Association, Customs and Excise Department, Hong Kong Association of Freight Forwarding and Logistics (HAFFA), Hong Kong Association of Aircargo Truckers, Carrier Liaison Group, and AA, was moderated by Mr Raymond Leung, Founding President of Hong Kong Logistics Association and generated productive discussion involving more than 220 participants. 

The panel agreed that the key words to consider as Hong Kong's air cargo community plans sustainable growth into the future are speed, integration, flexibility, transparency and frequency. Other suggestions included further promoting the air-sea-land multi-modal connectivity and logistics service of Hong Kong as a destination for consolidation and warehousing to buyers internationally, and attracting freight under the FOB (Free on Board) Hong Kong term for distribution round the world from HKIA.

At today's Forum, AA and stakeholders in the air cargo industry have committed to moving forward together and maintaining close communication in order to stay ahead.  AA will review and update HKIA's competitiveness regularly, and will continue its efforts to enhance multi-modal connectivity, and to further streamline trade and customs processes to provide a hassle-free, inter-modal cargo flow between the Mainland and Hong Kong. 

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