Hong Kong International Airport (HKIA) has retained its position as the world’s busiest cargo airport, according to the latest figures from Airports Council International (ACI) World, handling 4.3 million tonnes in 2023, up 3.2% on the previous year.
Reflecting on Hong Kong Air Cargo Terminal’s (Hactl) performance in 2023, Chief Executive Wilson Kwong says that the year started slowly and improved throughout the year.
He says, “Every month in the second half showed accelerating growth, finishing at 20% over the previous December. This was enough to bring us in at almost 2022 levels for the year. Export traffic played a significant role in this performance.”
The global air cargo market has been through a challenging two years, with Kwong saying it is hard to quantify the impact of economic and geopolitical issues on business.
Global inflation dampened consumer demand, which affected airfreight earlier in 2023 and became less of an issue as the year progressed, says Kwong.
He suspects that some of the recent growth is due to shipping disruption in the Red Sea increasing demand for airfreight and it remains to be seen how long that will last.
Kwong adds, “E-commerce growth stuttered in late 2022 and early 2023, but seems to have returned to good growth now, which is also helping the overall picture. Demand for Hacis’ services via its e-Commerce Fulfilment Centre is strong.”
Continuous improvement
The pandemic was a disruptive time in all of our lives, with Kwong saying for Hactl it accelerated implementation of planned developments.
Admin staff had to work from home so Hactl had to invest in a secure wide area network resource and it examined all remaining paper-based processes.
Now Hactl has almost completely eradicated paper from its processes, which makes remote working much easier if there is another disruption on the scale of the pandemic.
Plans to introduce the integrated Hactl Control Centre (iHCC), which centralises management of operations, producing real-time data on traffic flows, resource deployment and the location of individual ULDs was brought forward.
The data is shared with relevant parties and helps make better management decisions and respond to workflow peaks.
Kwong says, “iHCC really proved its worth throughout COVID, enabling us to function with minimal disruption when up to 40% of our workforce was quarantined. Overall, Hactl is even more efficient and resilient today, than pre-COVID.”
Efficiency and continuous improvement has been in Hactl’s DNA since its launch in 1976 to optimise the use of restricted air cargo space and facilities in Hong Kong, says Kwong.
Hactl retains around 40% of the market and its capital investments and pursuit of excellence makes it a major contributor to Hong Kong serving as the primary gateway between China and the world and as the cargo hub for Asia.
“Our continuing investment and strong reputation still play a large part in maintaining service standards here, and attracting business to and via Hong Kong. But we are not complacent, as Hong Kong’s commanding position will only be maintained one day at a time,” he says.
Digitalisation is a key area of improvement because capturing data digitally means it can be shared with supply chain parties, updated, used for necessary processes and to instruct other systems.
Kwong says cargo has a seamless digital journey through Hactl’s facility, which starts before arrival with customers pre-booking their truck dock slot.
When export cargo arrives, it is automatically photographed, measured and weighed, with captured data determining where it is stored and then retrieved for ULD build-up and loading.
Pick lists are provided by the data for pallet building and provides manifests for ramp staff to load the cargo correctly and on the right flight via handheld devices.
Kwong explains, “Loading instructions automatically incorporate any special actions which are required for that cargo or specified by that carrier. Changes can easily and instantly be made to flight manifests, enabling our staff to respond to last minute bookings or cancellations. And everything that happens is visible not only to our management and staff, but to our customers via secure portals.”
Sustainable future
Sustainability has been a commitment for Hactl for many years with early initiatives looking at recycling, reducing energy consumption and emissions, which resulted in the Green Terminal programme to engage and motivate staff and service partners.
In 2022, Hactl launched its annual Sustainability Report to report on its goals, achievements and actions.
Sustainability policies were formalised last year with the Sustainable Strategy Framework, which set targets and guidelines for the business, staff and business partners.
Kwong says the SSF takes inspiration from the 17 UN Sustainable Development Goals and goes beyond climate measures to take greater care of people by giving them a safe and secure environment.
Hactl also does work to assist the local community and the disadvantaged with Kwong giving the example of recycling used pallets to provide free furniture for poorer local families.
As younger generations have grown up in a society which places a greater emphasis on fairness and equality, there is impacting business, with Kwong saying: “As they reach management both in our company and in those with which we trade, those interests become demands, and we are responding to them by setting out clear strategies and guidelines about ethical and socially responsible behaviour.”
Attracting and retaining talent is challenging for many industries, including aviation. Hong Kong has near full employment and the airport’s remote location with largely manual, shift work involving working outside does not appeal to everyone.
Kwong says Hactl overcomes this by being the employer of choice with attractive remuneration and giving employees a career.
He says, “Over 50% of our workforce has been with us for over 10 years, and many for 30 or even 40 years. Our staff churn rate is well below the industry average.”
Kwong believes this pursuit of excellence will help Hactl retain its place as a leading cargo handler globally and Hong Kong will remain the top air cargo hub.
Hong Kong is the top air cargo airport for several reasons including its strategic location, connectivity, choice of carriers with freighter options, bilingual workforce and modern Customs.
He says, “Then add our three runway system which is about to come on line for the first time, and I believe Hong Kong will continue to outperform every other global location.”
This article was published in the June/July 2024 issue of Air Logistics International, click here to read the digital edition and click here to subscribe.