HKIA's Second Air Cargo Forum Charts Growth Strategies

(Hong Kong, 23 March 2006) - More than 250 air cargo industry experts and senior executives of the Airport Authority Hong Kong (AA) gathered to discuss the competitiveness of and growth strategies for the Hong Kong International Airport (HKIA) at the Air Cargo Forum 2006 held in Hong Kong today.

Following the success of last year's inaugural forum, this second forum identified ways to strengthen HKIA's premier hub position as a key supply chain integrator for the Chinese Mainland. Findings of two independent studies, researching on HKIA's competitiveness as an international air cargo hub and its air cargo handling tariff structure, were released at the forum.

The competitiveness study reaffirmed HKIA's leading hub position after examining and comparing flight connectivity, reliability, service quality, customs efficiency, security and safety of airports in the region. The tariff structure study concluded that HKIA is highly competitive when compared to the other airports in the region taking into consideration total costs including surface transport cost, airport handling charges and air freight fares.

Besides providing a platform to share and exchange views, the Air Cargo Forum also led to solid improvements that benefit the industry. After last year's forum, AA has facilitated the setting up of a task force to simplify the air freight charge structure as well as to streamline cargo cut-off time. With the concerted effort of the task force, Hong Kong Association of Freight Forwarding and Logistics Ltd (HAFFA) has simplified its cargo charge structure after thorough consultation with the logistics industry. The task force has also recommended a more transparent mechanism for air freight charge that better suit the need of the ever-changing market.

"The Chinese Mainland's international air cargo market has grown at an average of 16.7% per annum over the past three years," said AA Commercial Director Mr Hans Bakker. "To capture the growth opportunities and strengthen our leading position in the region, we will continue to enhance our multi-modal connectivity with the Chinese Mainland and the other parts of the world."

Mr Bakker added that to support the robust growth, the timely provision of air cargo facilities is a must. AA has planned to build new taxiways and 10 additional cargo stands. The HKIA will have a total of 35 cargo stands by 2007.

Meanwhile, the industry has put together a set of initiatives at the forum in support of Hong Kong's air cargo development. These initiatives are:

• To support the SAR Government's continued efforts to reach Air Services Agreements (ASAs) to improve access especially to the emerging markets 
• To urge for early commissioning of HK-Zhuhai-Macau Bridge to enhance HKIA's connectivity to West PRD
• To closely monitor overall costs and proactively stay competitive
• To rationalize trade and customs regulations and mechanism of trade declaration charges

AA and practitioners of the air cargo industry including shippers, airlines, logistics companies and freight forwarders are committed to ongoing customer service enhancement. They will also continue to seek support from the SAR Government to further streamline trade and customs processes. The industry holds the view that the provision of hassle-free multi-modal cargo services will strengthen HKIA as one of the most important international and regional air cargo hubs of China.