Aviation
HONG KONG AIRPORT’S INFRASTRUCTURE UPGRADES TO TRANSFORM CARGO OPERATIONS
July 24, 2023
Credit: Atlas Air
The new Cainiao Fulfilment Centre at Hong Kong International Airport is the third-largest cargo warehouse in Hong Kong. In early 2022, Cainiao inked a deal with Atlas Air to add a new Boeing 747-8 Freighter under a long-term agreement to increase capacity on routes between China and the Americas.

Hong Kong International Airport, already the world’s busiest airport, has no plans to rest on its laurels as it actively pursues an ambitious infrastructure programme.

 

The earliest of these new developments is the opening of the Cainiao Fulfilment Centre at Hong Kong International Airport (HKIA). The third-largest cargo warehouse in Hong Kong at 380,000 square metres is also in the making, expected to launch in September, according to Thomas Yu, senior director of global hub operations and product development at Cainiao Network.

 

He said that “a lot of technology” will be put in the said warehouse, including AI-enabled machines whose logic will be brought to the screening part of the operation. Ultimately, sometime in the future, people will be replaced by machines in the interests of security, he added.

 

In the meantime, Yu said Cainiao will “try and help people to screen things better and faster.” The company is focusing on timely deliveries and improving customer experience, hence the plans to place cutting-edge technology in the warehouse.

 

Another development Irene Lau, assistant general manager of aviation logistics at Airport Authority Hong Kong (AAHK), shared with Asia Cargo News at the IATA’s World Cargo Symposium is the third runway due to open at HKIA in 2024. At 3,800 metres in length and 60 metres wide, it will able to accommodate all types of aircraft, including Airbus A380 aircraft.

 

“Everyone is looking forward to this,” Lau said.

 

After its completion, HKIA will be able to serve an estimated annual traffic of 120 million passengers and 10 million tonnes of cargo, said Lau. Following its opening, HKIA will then announce the new transit mail centre set to launch in 2025. The transit mail centre will be done in cooperation with China Post and will increase the airport’s ability to handle transit mail outbound from China, which helps create what Lau calls “tiers of fulfilment.”

 

“We want to do more premium cargo,” she said, listing perishables, pharmaceuticals, high-value and luxury goods. “We can handle these types of goods safely and efficiently. We have considered both hardware and software systems. We have a lot of best practices and operational standards.”

 

The most recent in this category was being awarded the CEIV for lithium batteries.

 

Lau explained: “The usual way things are moved is through vans going to Hong Kong from factories across the border and then to the airport.” In addition to trucking, Lau said that HKIA plans for a new sea model to expand their catchment area to the Greater Bay Area. Their focus is not just on their own city-state but also on the remote Chinese areas over their border.

 

From four facilities in a logistics park at Dongguan, Guangdong, HKIA plans to establish a location for screening and acceptance before the goods are loaded on a bonded vessel and sent to Hong Kong. Despite talks of up to 80 tonnes of shipments, capacity adjustments will also be made as needed or required.

 

“It’s more like a satellite hub,” said Lau. “The shipper doesn’t have to cross the border to Hong Kong as this creates a more efficient operation for everyone.”

 

At present, a temporary pier is situated at the airport on the opposite side of the border with Hong Kong. A permanent one will be built to replace it by 2025. For convenience, a customs post will also be within the area.

 

“It will dramatically shorten and improve the efficiency of the transfer. It’s going to be a lot more effective,” Wilson Kwong, chief executive of Hactl, the Hong Kong Air Cargo Terminals, told Asia Cargo News.

 

Kwong estimates it will reduce cost by half and time by a third.

 

By Michael Mackey

Correspondent | Istanbul