Company Background
Hong Kong Air Cargo Terminals Limited (Hactl) was founded in 1976, it provides import, export and transhipment services of air cargo. To boost up the efficiency, Hacrtl has been using an advanced air cargo management system, COSAC-Plus, which enables information sharing and tracking anytime, anywhere. The system is able to handle over 1,000,000 data transaction per day.
Hactl has built up its own air cargo facility, SuperTerminal 1, which is the largest single multi-floor terminal over the world and Hactl is capable of handling 3.5 million tonnes of cargo per year.
We were given an introduction about Hactl’s background, business focus and competitive advantage were given by the staff from Public Relations Department. Hactl has been providing service of air cargo handling since 1976 and the company is trying her best to contribute to Hong Kong’s air cargo business. Hactl owns and operates Super Terminal 1 (ST1) which has well-developed cargo handling facilities. For example, Container Storage System (CSS), Box Storage System (BSS) and 313 loading docks. The comprehensive facilities have helped to enhance Hactl’s productivity and efficiency. On the other hand, Hactl cares a lot about security. Hactl has installed over a thousand CCTV in ST1 and every vehicle needs an authority when it enters or leaves ST1. Apart from security, Hactl also provides customers convenience. The advance air cargo management system supports real-time tracking and information sharing. Customers can make use of that information to perform clearance in a faster manner.
Guided Tour
Just after the introduction section, the staff of Hactl guided us to walk around the ST1. For the sake of protecting privacy, we were not allowed to take the photo in restricted areas. We started the visit from the fourth floor to ground floor. Fifth and sixth floor are used for storing empty containers, therefore, we have skipped these floors. The fourth and third floors are workstations for cargo build up and break down the process. The second and the first floor are used for cargo handover process and security spot-check. The ground floors is a perishable goods handling centre which is adjacent to the airport apron in order to minimise the distance between aircraft and the centre's truck docks. Hactl also operates two automated systems which are Container Storage System (CSS) and Box Storage System (BSS). The CSS is used for transfer unit load devices (ULD’s) from the tarmac straight into the system. The BSS provides storage positions for cargo awaiting import, export and transhipment in one location. Both CSS and BSS are multi-storey facilities.
Multi-floor Container Storage System (CSS)
The apron where goods loading or unloading take place.
Question and Answers
Since the executive staff are not able to come to the Q&A section, we are only able to clarify some of the questions with the Hactl staff.
Q. What specific or unique innovative technologies do HACTL incorporate with its cargo terminal operations to sustain the global supply chain with the airline clients? What measures does HACTL take to ensure workplace safety?
Hactl provides training for in-house workers regularly, especially for those who are new to air cargo industry. There are D.C. training and normal operations training in order to refresh their memories on how to correctly do the job tasks. Congestion sometimes happens and workers have no places to stand safety, which is quite dangerous. However, Hactl can only rely on training to teach workers to cope with dangerous situations.
Q. What would you consider the building of the third runway as an opportunity or challenge for Hong Kong’s air cargo industry?
This question cannot be answered.
Q. How does your company Container Storage System(CSS) and Back Storage System(BSS) work to facilitate cargo management?
Both CSS and BSS are multi-storey facilities which can operate automatically. The CSS is used for transfer unit load devices (ULD’s) from the tarmac straight into the system. CSS provides more than 3,500 storage positions and link with workstations located on 2/F, 3/F and 4/F. CSS allows Hactl to move, store and handle cargo in efficiency manner. The BSS is a bit different from CSS. It provides storage positions for cargo awaiting import, export and transhipment in one location. In addition, BSS cannot handle inventories with full pallet size. However, BSS is directly linked to the Customs Examination Hall which allows the customer to retrieve their inventories in a faster way.
Q. Knowing that HACTL also handles special cargos such as livestock and perishable goods, how does your company manage the complexity and optimise capacity?
A: Hactl also provides service of handling special cargos such as perishable goods, dangerous goods, livestock etc. Hactl will conduct different cargo handling process so as to avoid any defect of stocks during the transportation. For example, perishable goods are dedicated customs examinations facilities to allow for a fast release of goods.
Q. Being the largest ground handler at the world’s busiest cargo airport, how will HACTL react to increasing air transportation demand given the shortage of available slots and space constraints at Hong Kong?
This question cannot be answered.
Q. What are Hactl’s biggest competitive advantages over Cathay Pacific Cargo?
Hactl’s 2,500 employees are all in-house staff but the frontline staff of Cathay Pacific Cargo are mainly assigned to subcontractors. Having its own in-house staff, Hactl has a more flexible operation to cater to different requirements of over 100 airlines customers. As for Cathay Pacific Cargo, it faces more difficulties in managing all those subcontractors and problems always happen in operation industry. Thus, Hactl provides more reliable, flexible and experienced services to customers.
Q. With the third runway coming up, are there any strategies or expansions to cope with the increased cargo movement?
This question cannot be answered.
Q. How does COSAC-Plus system help to increase the tracking efficiency?
The customer of Hactl can perform various business decision based on the information shared through COSAC. COSAC allows information exchange, cargo tracking and clearing etc. Therefore, the customers can manage more efficiently or even react to market demand faster.
Q. How does HACTL apply EDI to support B2B communication and enhance the services' efficiency and effectiveness?
Hactl has a system, COSAC-Plus, to connect each stakeholder for electronic information sharing. For example, if a customer has to speed up the customs clearance operation, he needs the data before the cargo actually arrives. If Hactl relies on hard-copies, the process will be very slow that Hactl has to wait for the cadet to send out the documents and then deliver to the customer. However, COSAC-Plus can have information on a real-time basis and Hactl can send the information to customers so that they can decide on whether they will do the customs check and reply via the system.
