Cathay pioneers HK-China sea-air cargo linkup

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Sea air cargo linkup
Cathay Pacific director-Cargo Tom Owen (4th from left), Airport Authority HK executive director-Commercial Cissy Chan (4th from right), Cathay Pacific Services Ltd COO Mark Watts (3rd from left) and AAHK general manager-Aviation Logistics Ian Kwok (3rd from right) at the signing ceremony for the HK-Dongguan intermodal cargo deal. Photo from Cathay Pacific
  • Cathay Pacific Cargo and Cathay Cargo Terminal have become the first carrier and first cargo hub operator with freight shipments accepted in Dongguan, China, and transported to HKIA by ship for outbound airfreight
  • Cathay says the pioneering feat has enabled full upstream sea-air intermodal export cargo handling between the Greater Bay Area and Hong Kong
  • The cargo carrier is looking forward to offering a brand-new mode of cargo solution for Hong Kong’s logistics industry and to developing exports from the GBA, then add import cargo in the coming months

Cathay Pacific Cargo and its affiliated cargo terminal have pionnered a sea-air cargo linkup with freight shipments accepted in China’s industrial city of Dongguan and transported to Hong Kong International Airport (HKIA) by ship for outbound airfreight.

The city’s home carrier announced on February 13 the pioneering feat that enabled full upstream sea-air intermodal export cargo handling between the Greater Bay Area (GBA) and Hong Kong.

The carrier developed the intermodal scheme as it struggles to boost its air cargo volumes, which have lagged its passenger operations since the middle of 2022, when shippers stung by ocean shipping delays due to port congestion shifted to airfreight.

The HKIA Logistics Park in Dongguan enables shipments to be security-screened, built up and accepted as cargo for flights before being loaded on ships that unload in a secured area at HKIA, from where pallets and unit load devices (ULDs) can be towed straight to a waiting aircraft. The pilot scheme’s base will migrate to a permanent facility from 2025.

“The HKIA Logistics Park with sea-air intermodal connectivity to HKIA aims to reinforce HKIA’s role as the international air cargo hub in the GBA,” said Cissy Chan, executive director-Commercial of the Airport Authority Hong Kong, which developed the HKIA Logistics Park in Dongguan.

“The initiative brings our extensive air network, enormous handling capacity and efficient services to the doorstep of the air cargo customers in the GBA, contributing to the supply chain and economic development of the region.”

Chan said Cathay Pacific is delighted to have keen support from the industry partners, especially the Cathay Pacific Group, “which has pioneered with us the successful implementation of the pilot scheme of this strategic initiative.”

Cathay Pacific Services Ltd (CPSL), which operates the Cathay Pacific Cargo Terminal, is the first cargo terminal operator (CTO) to sign an air cargo service agreement with AAHK to operate in the pilot scheme, and has established its own upstream bonded facility – Cathay Cargo Terminal Dongguan – located at the Bestar Logistics Centre in Dongguan.

“We have been actively engaged in the downstream trials of the service over the past year and are delighted to be the first CTO to have provided full upstream acceptance of intermodal cargo in Dongguan,” said CPSL chief operating officer Mark Watts.

“By extending our air cargo handling services to Dongguan, we are able to offer more choice and more value-added services for our customers, as part of our vision to become the world’s most customer-centric air cargo terminal operator.”

The new facility is fully compliant with Hong Kong’s air cargo security regulations, and export cargo can be screened, palletized and accepted for shipment by cargo terminal operators in Dongguan, before being transported seamlessly by ship to a secured pier area at HKIA for air transhipment to worldwide destinations via Cathay Pacific’s passenger and freighter network.

Cathay Pacific director-cargo Tom Owen is looking forward to offering a brand-new mode of cargo solution for the Hong Kong logistics industry, and to developing exports from the GBA, a focus area for the airline. Import cargo will also be targeted in the coming months, he said.

“We are delighted to join hands with AAHK to promote the economic growth of Hong Kong and the region, while further strengthening HKIA’s status as an international aviation hub by using this first and only upstream facility of its kind,” Owen said.

“We would like to extend our thanks to our friends at Bolloré, Cargo Link, DHL Global Forwarding, Dimerco and Yusen Logistics, who helped to realize the viability and benefits of this programme with trials using real cargo shipments.”

The scheme will offer cost savings, improved efficiency and reliability, as well as improved cut-off times for shipments from the GBA. All parties will continue extending the operation to include imports from HKIA to the GBA via the HKIA Logistics Park.

The scheme is open to those Hong Kong freight forwarders that are “regulated agents” (RA). But they will need Hong Kong Civil Aviation Department’s approval of their application for Supplementary Pages to Regulated Agent Security Programme (RASP), which extend the RAs’ remit to upstream operations.

The HKIA Logistics Park in Dongguan uses CAD-approved X-ray machines and Explosive Trace Detectors, which are operated by AVSECO staff.