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HK Financial Secretary plans to boost local air cargo sector

HONG KONG Financial Secretary Paul Chan has outlined plans to boost development of the air cargo sector, earmarking airside and landside property to support growth in transshipments, high-value freight and e-commerce.

The authority also has driven a broad push for CEIV-Pharma certification and sponsored seven operators on its property to obtain the IATA badge. All seven are expected to be certified by the third quarter of this year, but Hactl was the first, having been certified in February.

Hactl CEO Mark Whitehead remarked that having GDP already under its belt helped speed up the process for the ground handling firm. "We have seen 84 per cent growth in pharma traffic already in 2017," he said.

Likewise, Hactl has also enjoyed growth from the rapid increase in e-commerce flows through Hong Kong, chiefly through Hong Kong Air Cargo Industry Services Ltd (Hacis), its road-feeder arm that runs trucks to locations in the Pearl River Delta. "We will drive further growth by adding depots and increasing RFS frequencies and destinations," Mr Whitehead said.

A key to this road-feeder strategy will be the completion of the US$10.6 billion Hong Kong-Macau/Zhuhai bridge.

Once the project is done, "we will once again be in a position to actively pursue freighter growth, and to accommodate it throughout the day, rather than just at night", said Mr Whitehead.

After this engineering feat is completed, by the end of this year, Mr Whitehead said the bridge will cut driving time to Zhuhai from two hours to 40 minutes.

Cathay Pacific cargo chief Simon Large hoped for legal and physical infrastructure facilities to move pharmaceuticals and perishables in and out of China.

The focus will be air-to-air transhipment, which should include temperature-controlled facilities and a bonded regional distribution centre.

Cathay Pacific has concentrated its e-commerce efforts so far on working with the postal services of Hong Kong and China. The airport authority is also working with Hong Kong Post to explore ways to enhance the capacity and set-up of the airport's mail centre.