BRIEF BACKGROUND INFORMATION OF HACTL
Hong Kong Air Cargo Terminals Limited (Hactl) was established and operated since 1976, which is the symbol of the Hong Kong air cargo business. It is serving over 90 airlines and 1,000 freight forwarders. Hactl classified itself as world's leading air cargo terminals with world-class facilities, efficient operation and innovative technology. All people can be the customers of Hactl as it has no affiliation to any carrier, and providing unbiased service to its airline customers.
Services HACTL offers to customers
• Physical cargo handling
- General / Express / Perishable
- Vulnerable / Dangerous / Valuable / Special (Live animals / Outsized cargo / Mini shipment)
• Ramp handling
- Aircraft loading and unloading
- Load control
- Flight operations
- Crew administration
- Crew transportation between aircraft and airport terminals
- All documentation for ramp handling services
• Import and export cargo documentation
- Checking, accepting and issuing air waybills
- Collecting charges
- Processing manifests
- Load estimates Import
- Arrival notification
- Document release
- Customs clearance
- Express discharge of special cargo
SITE VISIT AND SHARING
Container Storage System (CSS)
The multi-floor container Storage System is fully automated and providing more than 3,500 storage positions. System is directly linked to airside and allowing unit load devices (ULDs) to be transferred from tarmac straight into the system.
Box Storage System (BSS)
The Box Storage System is providing 10,000 computer-controlled storage positions with maximized security for protection. It is mainly used for import, export and transshipment cargo. With a proper design of location, it is enabled to have efficient retrieval of bulk cargo for customs inspection.
The COSAC “Community System for Air Cargo”
The COSAC is designed by Hactl to facilitate efficient information sharing among all stakeholders, which includes airlines, freight forwarders, Hong Kong Airport, Customs and Excise Department and related government departments. It is a powerful system with more than 400 functions online, including some are available on mobile phones. With the assistance of COSAC, it can assist Hactl to operate in a much more effective way.
Bulk Cargo Distribution System (BCDS)
Q&A SECTION
1. One of your service you provided indicated that “The first 48 Hours (from 0000 hours on the day of arrival & the Sunday and Public Holiday within the storage-free period)”, will there be large demand for such service? How do you match the supply and demand if the service is free?
The Hactl has a huge storage area and has installed more than 10000 automatic small cargos inside. The area is large to storage several days' volume of new arrival. The charge will be offer to the clients if they cannot take their shipment after two days with $2.40kg / day or minimum charge $40 per shipment per day. The charge will increase with the storage time of shipment increase. The charge of late take shipment can effectively avoid the over-demand problem.
2. How does the development of HACIS help facilitating the shipping processes of HACTL?
HACTL handles freights for carriers at Master Air Waybill level within SuperTerminal 1; while HACIS can process the import and export cargo down to House Air Waybill level, and arrange local cargo delivery to the warehouses in Hong Kong, as well as daily scheduled customs-bonded road feeder services to/from Southern China.
With headquarter at SuperTerminal 1, HACIS has the unparalleled geographical advantage to handle the time-critical shipments at the heart of Hong Kong International Airport, significantly shortening cargo processing time. Like no other logistic service providers, HACIS shares the state-of-the-art terminal facilities with HACTL and has long-standing good relationship with airlines, thus handling the cargo with greater efficiency and flexibility.
3.How will you response to the increasing demand caused by the third runway?
Recently, the Executive Council approved the expansion of Hong Kong International Airport into a three-runway system in order to meet further air traffic growth. While the argument of approving the third runway has raised so hot, to Hactl, it is surely a positive issue.
No matter how, building the third runway will increase the capacity of aircraft both on civil aviation and cargo. Once the supply of cargo increase, the demand for logistic and delivery will definitely increase. This will for sure benefit for the business of Hactl as more cargo or aircraft brand will cooperate with it for logistic services.
4. Since the demand on air cargo has recently been increasing, how do Hactl deal with this problem and ensure your service quality?
The increasing demand on air cargo may help Hactl to expanse its business. As they have effective and efficient system, Hactl can deal with this kind of situation easily. Besides, the system of Hactl is automatic, thus the quality may not be influenced by the increasing demand.
5. It was mentioned on your site that the latest Hactl drill demonstrated that systems could be fully resumed in a maximum of four hours should there be a system failure, has there ever been such failures in the past when such precautions were not in place? How did it affect your operations?
According to the statistics of Hactl, it shows that the failure rate of system is lower than 1%, which is an absolutely low percentage and showing that Hactl had a tight control over the whole process of its system. However, as they didn't mention if there was any previous failure, we are not able to tell the impact due to insufficient information.
6. Listed under 'Special Cargo Handling Facilities' is a livestock room at Hactl, what exactly does this entail and how do you handle it when there is outbreak of influenza virus?
Hactl provides services for livestock, like horse, Polar bear, and there are specific aircrafts and sites for these animals. To protect them, Hactl will employ veterinarians for inspecting and treating animals to avoid sicknesses including influenza virus.
7. In the age of globalization, will you consider to expand your business overseas?
Nowadays, the main developing market of Hactl is Mainland, China. And the subsidiary, Hacis, is responsible for providing services for Mainland. Under Hacis, SuperLink China Direct program focuses on the growing demand for Hong Kong-China air-road connectivity1 and creates long term cooperation with many companies in Mainland.
8. How do you make use of the automation to improve your efficiency?
Hactl is using an effective “Automated Cargo Handling System” to duel with repeated working processes. The network of automation is well-developed: With 3,500 positions of container storage system, 10,000 positions of box storage system, 40 units of automatic transfer vehicle, 466 workstations and 1,573 of empty ULD standard positions.
With the assistance of automation, simple tasks can be handled properly, for example, to short-distance delivery of products will be dueled by the automatic transfer vehicle. Cost of labor can be reduced under automation, and error can be minimized. Efficiency can be achieved by implementing automation.
9. What have you done in the environmental protection aspect?
As Hactl treats environmental protection as one of its core value, it is committed to run its business in a sustainable way.
Hactl is implementing several green initiatives in reduction of waste, emission and energy consumption, the recycle of paper, plastic wrapping and pallets, and also creating a clean air environment in SuperTerminal 1 which also ensure a comfortable environment to its employees at the same time.
10. How Hactl apply information technology in company operation in order to enhance its competitive advantages?
The signature system used by Hactl is the COSAC-Plus. Hactl have invested more than 240million to research and develop this air cargo management system that can be used by different stakeholders.
According to the information on Hactl’s website, the fuction of COSAC-Plus are as follow:“Hactl’s COSAC-Plus is the air cargo management system that enables freight forwarders, airlines, Airport Authority, government departments and related organisations to monitor and process the air cargo shipments 24 hours a day. More than 4,000 users use the system to communicate and share information. Over 1,000,000 data transactions are made every day. The system also facilitates e-Air Waybill and e-Freight, contributing to the paperless air cargo business.”
Besides, with the support of COSAC-Mobile, stakeholders like truck’s drivers, are also able to keep track on the order’s status. Thus, they will know when should go into the terminal to unload or pick up the related goods. With the usage of the air cargo management system and mobile app, it facilitate the daily operation within the terminal.
SUMMARY
Hong Kong Air Cargo Terminals Limited has a all-rounded facilities for managing thousands of cargo and flights. No matter on technology system, management and human resource planning, it has utilized it properly in order to enhance the largest efficiency.
REFLECTION
It is a memorable trip for us to visit Hactl, as we learnt a lots of practical knowledge related to terminal and air cargo services. We used to have many chances to visit different logistics company's system, but that is certainly our first time to have such a valuable opportunity to visit the air cargo terminal, and the experience is remarkable.
Besides, the well-organized structure of Hactl would be the key concept that we should learn. They try to provide the customized service to every customer, and a detailed planning before implementation is necessary. Thanks to the comprehensive plan, there seldom have error occur during the operation time, and this would be the successful part of Hactl to act as the world-class company in the industry.
REFERENCE
http://www.hactl.com/en-US/Media-Centre/Press-Releases/2013/COSAC-Plus-wins-APICTA-Awards.aspx#.VRLspFy8GLs
Hacis website, http://www.hacis.com/en/about/company.html, latest visit: 26-Mar-15
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