The Greater Bay Area is emerging as a critical nexus for innovation. As trade flows between China and the rest of the world continue to rise, multimodal solutions are gaining traction to meet the growing demand for faster, more efficient cargo transport, with the Hong Kong-Dongguan Sea-to-Air hub designed as a vital link to streamline operations and connect markets.

This marks a major shift in how goods are moved between southern China’s manufacturing heartlands and international markets, offering companies a seamless and secure transfer route, reshaping the competitive landscape.

“The development of the Hong Kong-Dongguan sea-to-air cargo scheme and intermodal activities, such as cross-border trucking, are intended not simply to target e-commerce, but to expand the overall interconnectivity of Hong Kong with the rest of the Greater Bay Area,” Tom Owen, Cathay’s Director Cargo, stated. 

“In the export model, shipments have been screened for security, built up and accepted as cargo for flights at the Hong Kong International Airport (HKIA) Logistics Park in Dongguan, before being loaded on to ships and sailed to a secured area at HKIA without the need for shipments to be broken down. 

“Now, in the import model, shipments can also be taken on their pallets or in their Unit Load Devices (ULDs) direct from airside at Hong Kong International Airport to the Cathay Cargo Terminal in Dongguan by boat. 

“The GBA is a rapidly expanding consumer market, and we can expect high-quality perishables to take advantage of this seamless service for imports in future. The bonded transfer could avoid potential land border delays and provide greater flexibility in terms of route planning and capacity utilisation, providing our customers with a stable and efficient alternative option for imports into the GBA.”

Growing sectors

e-commerce has been a bright spot in post-covid – demand just kept building, and by the end of 2023 it was finished with a strong note. Given that a large amount of this e-commerce volume is sourced from the southern part of the Chinese Mainland, Hong Kong and Cathay Cargo’s strategic location have been invaluable in serving this booming sector.

“e-commerce has been the story of 2024, and whilst there is pressure on the regulation of e-commerce, we are confident with demand forecast. There are better experts than us on the appeal of e-commerce, but cost, speed to market and convenience are key factors.

“While e-commerce tonnage will continue to rise, we also foresee an increase in tonnage of high-tech and electronic goods from the Chinese Mainland, Southeast Asia and India.

“Online retail growth is forecast to vastly outstrip traditional retail, especially across the Americas. Fresh produce from South America into Hong Kong and the Chinese Mainland is a big growth area.”

Targeted approach

Cathay now has more than 100 new-generation aircraft in its delivery pipeline, with the right to acquire over 80 additional aircraft in future. With orders covering narrowbody, regional widebody, long-haul widebody, and large freighter aircraft, these investments promise to modernise and expand Cathay’s fleet, taking it to the next level.

Cathay Cargo Terminal opened in late 2022 HKIA’s largest dedicated Pharma Handling Centre, a fully temperature-controlled area of over 1,250 sq m dedicated to the handling of pharmaceutical products. The facility features real-time temperature monitoring, temperature-controlled truck dock shelter for airtight sealing and multiple charging points for cool containers.

“With the recovery of passenger flights, we have been able to regain and establish new business with our Cathay Fresh special solution from all around the world,” Owen highlighted.

“Knowing that customers constantly seek better management over critical control points, we have also begun to use cool dollies on selected perishable commodities at our Hong Kong hub to protect highly sensitive shipments from the extreme tarmac environment.

“Plus, Cathay Cargo provides next-generation Ultra Track service as a value-added option to predominantly temperature-controlled shipments, which offers enhanced data visibility for both customers and Cathay staff throughout the shipment journey using Bluetooth technology. With near-real-time data, not only can customers keep track of shipping environment conditions and locations, Cathay Cargo’s operational teams can also stay ahead of shipment statuses and provide 24/7 responses to any customer queries via live-chat.

“Recently, we’ve completed the IATA recertification audits for CEIV Fresh on top of having been certified for CEIV Pharma since 2017 and CEIV Live Animals since 2021, and we were the world’s first airline to be certified for CEIV Fresh back in 2019. We completed the full set of IATA certification when we received CEIV Lithium Batteries in 2023. Customers are able to recognise and differentiate our standards and we will continue to uphold them.”

Strategic role

Hong Kong retained its status as the world’s busiest air cargo hub in 2023, handling 4.3 million tonnes of cargo, which accounted for about 47 percent, or about HK$4,160 billion, of the total value of Hong Kong’s external trade, with Cathay Cargo being the largest contributor at 1.4 million tonnes.

A key factor in this success is Hong Kong’s strategic location, reaching half the world’s population within a five-hour flight, and is perfectly situated to carry freight from the world’s largest producing regions – the Chinese Mainland, South East Asia, India and Bangladesh, into the world’s largest-consuming regions – the Americas and Europe.

“Cathay Cargo is dedicated to upholding and strengthening Hong Kong’s premier position. Within 2025, we will fly to 100 destinations worldwide from our Hong Kong hub and utilise cargo space on our Group’s more than 230 aircraft, including the express all-cargo carrier Air Hong Kong,” Owen outlined.

“Notably, Cathay Cargo and Cathay Cargo Terminal were the first carrier and the first cargo terminal operator respectively to accept cargo shipments in the HKIA Logistics Park in Dongguan, transporting flight-ready security-screened and palletised air cargo shipments efficiently.

“The Three-Runway System at Hong Kong International Airport is set to be fully operational by the end of 2024, and it will provide capacity to meet the long term air traffic demand of 10 million tonnes of cargo forecast for 2035. We look ahead to the exciting opportunities, and we have deep confidence in the long-term future of the Hong Kong air- cargo logistics hub.”