Hong Kong Air Cargo Terminals Limited (Hactl)
Company Background
Hactl operated since
1976 and located at Hong Kong International Airport (HKIA). It supported the
import, export and transshipment of air cargo in Hong Kong. It, is one of the leading air cargo terminals
in the world, provides world-class facilities and innovative technology with
highly efficient operation to its customers. It is the neutral air cargo
terminal operator at Hong Kong International Airport providing unbiased
services to all of their airline customers. Value-added services like pre-arrival
customs clearance, import scheduled collection, schedule empty until release,
etc. are offered to enhance customer satisfaction.
1.
After
the opening of Cathay Pacific Cargo Terminal, how does it affect your company’s
business performance? How do Hactl react
to its local and global rivalries?
In
the past, Hactl was the largest air cargo terminal in Asia and it dominated the
market. Cathay Pacific is the main customer of Hactl that owned 40 percent
business of Hactl. However, Cathay
Pacific opened its own Cargo Terminal and built up its own transportation team. Cathay Pacific sold its shares to the
remaining shareholders and become a competitor to Hactl. Cathay Pacific’s
action has caused cargo volume of Hactl to drop around 30%.
In fact,
Hactl realized its biggest customer was planning to build its own cargo
terminal and would leave them. Hactl has done preparation actions for coming up
with this situation. For example, in the past, Hactl has not enough resources
and capacity available for excessive cargo demand. However, after they realized
their biggest customers would leave them soon. They had more resources and capacity
available for new customers. They put more manpower resources and capacity on
absorbing new or small-scale businesses. Moreover, Hacis, is a wholly-owned
subsidiary of Hactl, supports Haclt to diversify its business into Mainland
China. So that, Hactl can provide one-stop logistics service for its customers that
can enjoy not only the storage services but also the transportation of cargo
directly to mainland China.
2.
What
will you do proactively if the similar event occurred again?
Hactl’s
managers has not replied this sensitive question. However, we believe that
Hactl is optimistic about their future. They will keep providing the high
quality and more value-added services to their existing customers to improve
Hactl’s service level. Moreover, with the advance of technology development in
recent years, Hactl should invest more resources on innovation technology
development to provide more customer-oriented services to their customers in
order to enhance customer loyalty and maintain its air cargo leading position
in Hong Kong.
3.
What
efforts have you made in terms of Corporate Social Responsibility to achieve
its sustainability? For example, what
are the means used in reducing the greenhouse gas emission and wastes from
packaging?
Hactl
has participated in the Clean Air Charter Certification Scheme since 2010 and
is attained an Excellent Class Indoor Air Quality Certificate in 2013. These
scheme and certificate indicate that Hactl has helped improve the air quality
of SuperTerminal 1.
Burning
of crude oil will emit gases with high content of carbon dioxide which may
facilitate the seriousness of Global warming.
Firstly,
Hactl has used electronic charger for its forklift trucks in order to reduce
the use of crude oil. Secondly, Hactl recycles most of the plastic wrapping and
wooden pallets in order to reduce the consumption of plastics and woods.
Recycling bins are used to encourage recycle of paper, plastic and bottles. It
also supports recycling of computer and electronic waste. Thirdly, Hactl has
used electrically power cars to deliver document and small scale cargo so that
less crude oil is used. Finally, it has encouraged its customers to use
e-freight to reduce the use of paper.
4.
Hong
Kong Airport Authority continues to expand HKIA’s catchment area beyond Hong
Kong and into the PRD. What are the
strategies for Hactl to seize this business opportunity?
After
the building up of the third runway in HKIA and finishing the construction of
Hong Kong-Zhuhai-Macau Bridge (HZMB), more airlines and traffic flow will pass
through Hong Kong. Hacis will continuously help Haclt to diversify its business
into Mainland China. With more capacity available for the cargo demand, Haclt
can seize this opportunity to further expand its business into Mainland. For
example, Hacis has taken advantages of the project of Hong Kong-Zhuhai-Macau
Bridge to extend its depot network to tap the potential from the connection. With
this bridge, the transportation time will be shortened. Hactl are trying to find
new partners in China e-commerce and on the western area of the PRD.
5.
How
does Hactl tackle the increasing competition from other competitors in the
Pearl River Delta?
Hactl
operates as an integral role in the logistics company in Hong Kong and the
Pearl River Delta. The rise of so-called competitors in Pearl River Delta is
not a threat to Hactl. It would be an opportunity for Hactl. Hactl wants
collaboration with its mainland counterparts instead of considering them as
competitors. Such initiatives can be evident by the SuperLink China Direct road
solution with is developed by Hacis. This solution build seamless air-road connection
between Hong Kong and some major cities in China.
6.
How
does Hactl use information technology to manage the receipt, storage, delivery
of containers?
Hactl
has used Innovation technology to smooth information and logistics
process.
It
makes use of COSAC-Plus and COSAC app to improve its operation efficiency and
customer loyalty. It provides the cargo tracking services for their
customers to check the status of their cargo by using internet or mobile app. COSAC-Plus, a home-grown system is
a new generation air cargo management system which enables tracking cargo, exchange
of information and facilitating e-freight. This system links airlines, freight
forwards and government authorities with a common database and allow them to
manage and monitor the air cargo.
Hacis
E-logistics System which is a warehouse and order management system facilitates
cargo information flow along supply chain. It provides real-time cargo status
including the inventory records and GPS summary and connects to COSAC.
Control-M
which is event based job scheduling system is used for all end of day or
overnight jobs. It improve operation efficiency and streamlines the operation
processes by starting the next job when the preceding one is finished. This
system handles 400-850 production tasks per days. The tasks range from data lifecycle
management to preparing reports for clients. It is a centralized system that
provides a standard platform for the whole company to use.
It
has also make use of Box Storage System (BSS) and Container Storage System
(CSS) which are fully automatic systems to provide 10,000 and more than 3500 storage
positions respectively to manage the storage containers safely and efficiently.
CSS is direct and covered interface with the airside to transfer unit load devices
from the tarmac straight into the system. BSS is directly linked to the Customs
Examination Hall to facilitate efficient cargo retrieval for customs personnel.
The security level of BSS is high as the storage location of cargo can only be
identified by the computer system.
Bulk
Cargo Distribution System (BCDS) is a computer controlled system that move cargo
between floors and over 300 workstations. There are more than 300
computer-controlled workstations for build-up and breakdown of import and
export unit load devices.
7.
Global
warming is an important issue. How can Hactl minimize the emission of carbon?
8.
What
is the contingency plan of Hactl under extreme weather when employees are
required to work outdoor?
Hactl’s
staffs are not permitted to work at aircraft parking apron if there is typhoon
signal number 8 or above. However, if the cargo aircrafts are already arrive
under the extreme weather employees are also require to take off the cargos in
a safe situation. This can ensure customers’ products will not be affected by
the extreme weather. There are some safety areas in the aircraft parking apron
for their staffs who require to work outdoor to stay out from extreme weather.
Moreover,
Haclt cooperates closely with airlines in order to relieve the cargo bottleneck
and more staffs are assigned to apron to resume the operations after the
extreme weather warning signal is gone.
9.
Hong
Kong International Airport is planning to build the third runway. What will be the impact on Hactl’s logistic
operations?
Hong Kong
Airport is the world’s busiest cargo gateway with more than 4 million tonnes of
air cargo handling yearly. It is expected the trend will keep increasing in the
near future. Haclt has handled large volume of air cargo movement in Hong Kong.
With one more runway, the airport’s air cargo handling capacity will be
improved so that aircraft movements can be kept at safe levels. It would be an
opportunity for Haclt’s logistics operations to maintain its position as one of
the world’s leading air cargo hub.
10. What
are the challenges of handling large volume of goods?
Hactl has
expertise experiences on handling large volume of goods. However, the greatest
challenges for Hactl are handling small pieces goods or goods which are soft in
texture. Sometimes, it is difficult for Hactl to find a convenient and
efficient way to deliver the goods through aircrafts.
