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DHL says Hong Kong needs 3rd runway to stay on top of cargo game

GERMAN logistics giant DHL has declared that it supports Airport Authority of Hong Kong third runway project and wishes construction to start no later than next year.

This is necessary, said a DHL statement, to keep Hong Kong ahead in Greater China's vibrant air cargo market, fuelled by surging e-commerce and demand for perishables.

"China has overtaken the United States as the largest online shopping market in the world since 2013 in light of the growing middle class," said Kelvin Leung, CEO, DHL Global Forwarding Asia Pacific.

"It has prompted many international e-retailers as well as luxury brands to set up regional distribution centres in mainland China," said Mr Leung.

"The Hong Kong International Airport (HKIA) reported yet another record year for cargo throughput in 2014/2015 by handling 4.4 million tonnes of cargo, which saw the airport as the world's busiest air cargo hub for five consecutive years since 2010. The cargo throughput in HKIA increased by almost six per cent annually during the period," said the DHL statement.

"We are positive about the future of HKIA based on the Airport Authority's forecast of 8.9 million tonnes of cargo going through the airport by 2030," said Mr Leung.

"The investment of more than HK$140 billion (US$18 billion) in the expansion of HKIA is a substantial commitment for the future of the logistics industry in Hong Kong. As one of the four-pillar industries in the city, we think that it is a rational and necessary investment," he said.

Seventy per cent of the air space on the mainland China has not opened fully to commercial flights which will provide leeway for the implementation of the enhanced measures to accommodate not just Hong Kong but also the expansion in Shenzhen and Guangzhou, said DHL.