Hong Kong and Cathay Cargo have been embracing multimodal operations, as they look to build on the region’s growth going forward. Connecting the world’s busiest airfreight hub with mainland China through the Greater Bay Area (GBA), Cathay Cargo is offering customers new avenues of choice.
The goal isn’t just to provide more connectivity options, it also aims to present the most efficient and cost-effective solution to moving freight possible, as Hong Kong and the GBA seek to remain on top amid pressure from hubs around the Asia-Pacific region.
Tom Owen, Director Cargo at Cathay Cargo, described the set up as a “pioneering” operation, citing how Cathay was the first terminal operator and cargo airline to establish an innovative sea-air operation, which later expanded to others at the airport and additional carriers.
“Right now, we’re operating out of fully functioning but temporary facility, which is making sure we can iron out any issues and get all the technology right for the customers in advance of a state-of-the-art permanent facility being constructed,” Owen said.
READ: Welcome to the world’s busiest airfreight hub
Hong Kong to Dongguan
Cathay Cargo Terminal initiated the first commercial shipments southbound from the GBA in February last year, with the northbound shipments commencing last December.
“It’s a clever way to ensure that the Hong Kong air cargo hub maintains and grows its competitive advantages into the future, allowing the benefits of the Hong Kong International Airport (HKIA) and its efficient cargo logistics ecosystem to be brought physically into the heart of the manufacturing region of the GBA,” Owen highlighted.
The advantage lies in the streamlined process. Instead of transporting cargo from the GBA to Hong Kong by truck, encountering potential delays and going through the consolidation process at the freight forwarders or cargo terminal, they’ve established a more direct route. The cargo can be transported from factories in Dongguan or nearby directly to the Cathay Cargo Terminal Dongguan. Once there, the entire process including build-up, palletisation, security screening, customs clearance, cargo acceptance, and documentation is executed. Essentially, everything that is typically done in Hong Kong can now take place right in Dongguan, much closer to main production centres.
Following this, the cargo is shipped by barge from Dongguan to a temporary pier facility at HKIA. A permanent “sky pier” is currently being constructed as part of the Three Runway System expansion project. From there, it can be seamlessly loaded onto an aircraft. “This saves a significant amount of time compared to the current approach, and allows us to handle the cargo more cost-effectively than in Hong Kong,” Owen commented.
“It’s early days but the pilot is going well. The opportunity is that we can handle cargo cheaper and quicker than traditional methods, making this a compelling proposition. There is no doubt that stronger links with the GBA will be good for Hong Kong and our customers,” said Mark Watts, Chief Operating Officer of Cathay Cargo Terminal.
“It’s all about the future speed and efficiency improvements that this innovative logistics solution provides,” Owen concludes. “The cost of handling cargo at the Dongguan facility is around half that of Hong Kong which is a tangible saving to customers. Once we have everything in place, this new logistics option will become attractive to more and more forwarders and shippers alike, of that I am certain”.
, Cathay Cargo is offering){kind=link}