Hactl company visit

Company Name

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?

 Similar question with question 3. The answer of this question can be refer to question 3.

 

 

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.