ACW Asia Pacific Supplement 23

SUPPLEMENT ASIA PACIFIC

Your guide to the latest developments in the international airfreight industry

AIRFREIGHT IN THE ASIAN POWERHOUSE AIRPORTS DOING BUSINESS IN ASIA PACIFIC

ECS GROUP: POWERING ASIA PACIFIC BUSINESS

AIRFREIGHT IN THE ASIAN POWERHOUSE

Editor: James Graham

Associate Editor: Chris Lewis

Director of Operations: Kim Smith

International Sales Director: Rosa Bellanca

International Sales Executive: Zainab Khalid

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Directors: Norman Bamford • Dawn Jolley

The Asia-Pacific (APAC) region, although lacking a definitive dictionary definition, encompasses countries in East Asia, Southeast Asia and Oceania that are situated near the western Pacific Ocean coastline. The term gained popularity in the late 1980s in commerce, finance and politics. Despite the diverse range of economies within the region, many individual nations are classified as emerging markets and are experiencing rapid growth.

Within the Asia-Pacific region, there are three prominent airfreight gateways: Singapore, Hong Kong, and Shanghai. These world-class gateways, three of the top 10 cargo airport operations and the world’s number one gateway Hong Kong, serve as crucial hubs for air cargo transportation to, from and within the region.

In contrast to the weakening transatlantic corridor, the outbound cargo market in China has shown resilience this year, bouncing back from global market downturns earlier in 2023. Supported by positive manufacturing activities in the country, with expanding Purchasing Managers’ Index (PMI) readings for two consecutive months, cargo volumes from mainland China grew by 30% from February to March, experiencing only a 2% decline compared to the previous year. However, the growth of air cargo capacity outpaced the growth of volumes. For example, the capacity from mainland China to Europe saw a 63% increase compared to the previous month and a substantial 155% increase compared to the previous year in March.

In March, the airfreight spot rates from mainland China to the United States and Europe were $5.07 per kg and $3.65 per kg, respectively. These rates represented a 7% decline compared to the previous month and a significant 43% decline compared to the previous year. It is important to note, though, that for both corridors, the downward pressure on rates started to ease from the second week of March, resulting in more stabilised rates until the end of the month.

Looking ahead, Hong Kong is expected to experience a boost in air cargo as the government eases a ban on transhipments of e-cigarettes and vape products via the city. This restriction, which was implemented in April of 2022, had prevented approximately 10% of Hong Kong’s annual export volumes in cargo.

Boeing’s forecast indicates that global air cargo will grow at an average compound rate of 4.1% per year over the next two decades.

The robust market growth in East Asia, the acceleration of global e-commerce and the evolution of supply chains are expected to be key drivers of this growth. Moreover, the pricing ratio between air cargo and maritime containership cargo transport has reached historically low levels since early 2021, further enhancing the advantages offered by air cargo. This is particularly important to airfreight operators in the

region as sea, sea/air shipments through the Middle East and surface modes such as road and rail and even coastal shipping all have major roles to play in the region’s logistics and freight business.

Off the rails

Rail transportation provides a cost-effective alternative to airfreight and a faster option than shipping by sea. The New Silk Road, a modern rail link connecting Western Europe to China, is gaining traction. However, progress on this alternative route has been hindered by the impact of the war in Ukraine and international sanctions against Russia. A significant portion of the route passes through Belarus and Russia, which are affected by these geopolitical factors.

Sanctions against Russia have resulted in businesses refraining from transporting goods by train. Several freight forwarders have ceased transporting goods over the northern part of the New Silk Road. Even for those continuing to use this route, insuring the goods may pose challenges.

Home, sweet home

The Asia-Pacific region is home to a population of 2.57 billion, with China alone accounting for 1.4 billion people. This demand, both for manufacturing products and domestic, consumer products, fuels much demand for airfreight in the region.

Among the top cargo airports globally situated in the Asia-Pacific region, Hong Kong International Airport (HKG) stands out as the world’s busiest airfreight airport, handling 4.1 million tonnes of cargo last year. Other notable airports include Shanghai Pudong International Airport (PVG); Incheon International Airport (ICN) in South Korea; and, Taiwan Taoyuan International Airport (TPE), which serves as the main international airport for Taipei and northern Taiwan. Additionally, Tokyo Narita International Airport (NRT) is one of the two international airports serving the Greater Tokyo Area.

On the other side of the Pacific, Los Angeles International Airport (LAX) plays a significant role as a major cargo airport, serving Southern California and partnering with Asia-Pacific countries to facilitate the transportation of thousands of tonnes of cargo.

Collectively, excluding LAX, these major APAC airports handled approximately 15.16 million tonnes of cargo, demonstrating the substantial airfreight activity in the region.

Changes afoot going forward

Oslo-based Xeneta, the leading air and ocean freight rate benchmarking and market intelligence platform, considers that

mounting geopolitical tensions, shifting alliances and changes in the flow of foreign investment threaten to gradually remould global trade patterns, including in the APAC region. The platform points to evidence in the rise of ‘friendshoring’ and evolving freight volumes between key markets to map what may be a “new world order.” China, the US, Vietnam and Russia appear to be some of the key players in a slowly unfolding plot.

“In the aftermath of the US-China trade war, the global pandemic and the invasion of Ukraine, amongst other on-going factors, there’s been renewed focus on supply chain security,” comments Emily Stausbøll, market analyst at Xeneta. “There’s a new appreciation of how easily everyday operations can be disrupted, and the growing geopolitical uncertainty is only exacerbating that.

“As a result, we’re seeing more signs of friendshoring, whereby investments, manufacturing links and facilities are moved to countries that are deemed to be ‘friendly’ –essentially sharing the same values or geopolitical outlooks. This is a gradual process. The impact of this should not be underestimated.”

“If we look at the IMF’s analysis of foreign direct investment (FDI) flows the movement is crystal clear – in short, we see friendshoring in action,” Stausbøll states.

Declining investment into China

The International Monetary Fund found that investments by foreign companies into China fell to their lowest level in close to two decades

in the second half of 2022. They collapsed by 73% year-on-year, down to $42.5 billion. Putting this into context, between the second half of 2020 and first half of 2022, foreign investments averaged $160 billion in each half year.

By way of contrast, Vietnam has seen FDIs grow by 61.2% year-on-year across the first three months of 2023, including a 62.1% increase in the number of new foreign-invested projects. The processing and manufacturing sectors attracted the most investment here, accounting for around 75% of the total.

Stausbøll comments: “It takes time to build new production bases and make port infrastructure investments, as we’re seeing in, for example, Vietnam, Cambodia and Singapore, so the impact of investments today won’t be fully appreciated until tomorrow. This implies that the changing trade patterns we’re seeing now could just be the beginning of a far greater realignment.”

She concludes: “Moving forwards, the evidence suggests we’ll see more trade and investment decisions based on geopolitics rather than, say, availability or price. How this progresses, and the speed of change, will be dependent on a range of uncertain factors – not least the escalating tension around Taiwan. So far, Europe has maintained its share of imports from China, with key leaders taking a more conciliatory approach than the US, but another major geopolitical ‘event’ could transform that.

“The only sure thing is change, and friendshoring is bound to influence how that unfolds.”

“The only sure thing is change, and friendshoring is bound to influence how that unfolds.”

ECS GROUP: POWERING ASIA PACIFIC BUSINESS

ECS Group has been operating in the Asia Pacific region for almost 20 years, establishing itself as a significant player in the industry. The decision to base ECS (Asia Pacific) in Singapore was strategic, leveraging the city’s excellent connectivity and business-friendly environment.

During this time, the company has formed strong relationships with local partners, allowing it to navigate the region’s unique dynamics, comments Adrien Thominet, chairman of Paris-based aviation business services provider ECS Group.

“China plays a crucial role in the airfreight industry, and ECS Group acknowledges its importance,” says Thominet. “The company has adapted to challenges, including the COVID-19 pandemic, and is working towards restoring business levels. With a combination of local and expatriate staff, ECS Group has integrated into the regional business atmosphere successfully. Overall, ECS Group’s long-standing presence and expertise makes it a key player in the Asia Pacific airfreight market.

“There was significance in basing ECS (Asia Pacific) in Singapore. Singapore serves as a natural gateway to Southeast Asia and has historical ties to our initial acquisitions in the region. Additionally, we have been the Global Service Agent (GSA) for DHL for over 15 years, and Singapore is their strongest hub in the region. Therefore, we wanted to ensure alignment with their organisation.

“The countries in the region that provides us with the highest level of business activity are Vietnam and India. On the other hand, Indonesia represents the country with the smallest levels of business activity. It’s worth noting that Cambodia has been facing some export issues since the end of 2022, but it is gradually recovering,” he adds.

Some 20% of ECS Group’s global business is created by the Asia Pacific region. The business atmosphere in the Asia Pacific region can be “dynamic and diverse, with varying levels of competition and barriers to entry,” says Thominet.

“It is important to note that market conditions have been relatively weak since the beginning of the year, leading to increased competition among businesses operating in the region. Additionally, each country in the region has its own unique culture and regulatory framework, which can present challenges and opportunities for businesses. Having strong local expertise is crucial in maximising production and adapting to specific local contexts. ECS Group, with its experienced local teams, understands the importance of navigating these dynamics and leveraging their knowledge to deliver tailored solutions to meet the specific needs of each market.”

Despite the challenges, ECS Group has positioned itself as a key

player in the industry by fostering strong relationships with local partners and adapting its approach to different markets. The company’s “agility and adaptability” enable it to excel in the Asia Pacific region, overcome barriers to entry, and provide high-quality services to its airline partners.

Chinese influence

China plays a significant role in the region’s airfreight industry. As the world’s second-largest economy and a major manufacturing and trading hub, China generates substantial air cargo volumes. Its strong export-oriented industries and global supply chain connections contribute to a significant portion of airfreight activities in the Asia Pacific region. Consequently, any disruptions or changes in China’s economy or trade patterns can have a considerable impact on the overall airfreight market in Asia Pacific.

Since the beginning of 2023, China has reopened its international trade, and this has had a direct impact on regional volumes within Asia. The resumption of international exchanges by China has significantly influenced trade dynamics in the region, leading to increased business activity and trade flows within Asia. This shift in China’s trade policies has been perceptible in the overall volumes and has played a significant role in shaping the business landscape in the Asia Pacific region.

Long-term commitment

Thominet says: “ECS Group opened its first branch in the Asia Pacific region almost 20 years ago, demonstrating its long-term commitment to the region. At ECS Group, we prioritise the employment of local staff at our regional operations. We believe in harnessing the expertise and knowledge of our local teams who possess a deep understanding of the local markets, culture, and language. By having a strong local presence, we can tailor our services and solutions to meet the specific needs of our customers in the Asia Pacific region.

“Additionally, as part of a highly organised and globally integrated group, ECS Group brings a wealth of business solutions and robust security measures to the region. Our extensive network and industry-leading practices enable us to provide efficient and secure cargo services. This combination of local expertise and the support of a well-organised group allow us to deliver high-quality services and maintain a strong presence in the Asia Pacific airfreight market,” Thominet concludes.

“The countries in the region that provides us with the highest level of business activity are Vietnam and India”

HONG KONG KEEPS ITS CARGO CROWN

Long the world’s busiest air cargo airport, Hong Kong International Airport (HKIA) has solidified its position with strategic initiatives. HKIA has consistently maintained its position despite the challenges posed by the Covid-19 pandemic and throughout the past three years, HKIA has demonstrated resilience, ensuring stable cargo throughput. In a remarkable achievement, HKIA was once again named the World’s Busiest Cargo Airport in 2022 by Airports Council International (ACI) AsiaPacific, having successfully handled an impressive throughput of 4.2 million tonnes.

To meet the long-term air traffic demand of the city, HKIA is currently in the process of developing a state-of-the-art Three-runway System (3RS). With the implementation of the 3RS, HKIA will significantly expand its capacity, enabling the handling of a remarkable 10 million tonnes of cargo annually. To fortify HKIA’s position as the world’s premier cargo airport, the Airport Authority Hong Kong (AAHK) has implemented a multi-faceted strategy.

Expanding capacity

Anticipating the exponential growth of e-commerce and express air cargo services, HKIA’s cargo community has proactively expanded its capacity to seize these lucrative opportunities. A joint venture led by Cainiao Network, the logistics arm of Alibaba Group in Mainland China, has developed a premium logistics centre that will commence operations this year. Spanning an impressive floor area of 380,000 sq m, this cutting-edge facility will be equipped with state-of-the-art robotics and advanced technology, serving as Alibaba’s smart hub in Asia. Additionally, DHL’s Central Asia Hub at HKIA has completed its expansion in 2023, effectively increasing its annual handling capacity by 50% to over one million tonnes. Furthermore, the construction of the Transit Mail Centre is underway, aimed at enhancing the airport’s capacity for handling transit mail from Mainland China en route to global destinations. This ambitious project is targeted for completion by 2025.

Temperature-controlled lead

Recognising the growing demand for temperature-controlled airfreight, AAHK has seized new opportunities and developed globally recognised capacity to handle cargo that requires special treatment. HKIA stands as the first airport in the world to receive all three of the International Air Transport Association’s (IATA) CEIV certifications for Fresh, Pharma, and Live Animals, earning the distinguished title of Partner Airport. These certifications validate HKIA’s exceptional capabilities in the transportation and handling of temperature-sensitive goods, including fresh produce, pharmaceutical products and live animals, all performed to globally assured standards.

Boasting world-class cold-chain facilities, including approximately 7,000 sq m of dedicated cold room storage and the largest fleet of cool dollies among Asia’s airports, HKIA leads the way in providing superior temperature-controlled handling. Moreover, all three cargo terminals at HKIA have received the IATA CEIV Li-battery certification for handling special cargo.

Embracing digitalisation

HKIA recognises that digitalisation is pivotal to enhancing its cargo operations to achieve sustained excellence. As a forward-thinking leader,

HKIA has spearheaded the development of the HKIA Cargo Data Platform, a cutting-edge digital platform for the Hong Kong air cargo industry. This innovative platform connects key stakeholders such as cargo terminal operators, freight forwarders, truckers, warehouse operators, and regulators, fostering seamless communication and paperless operations through a synchronised trusted network built on blockchain and other smart technologies. The processed data from this platform yields valuable intelligence, enabling a more resilient and sustainable cargo supply chain.

A vital manufacturing hub

HKIA has set out to solidify its role as the Greater Bay Area’s International Cargo Gateway, currently handling an impressive 75% of international air cargo from the Greater Bay Area (GBA).

As one of the world’s most critical manufacturing hubs, particularly in the electronic and high-technology product sectors, the GBA plays an integral role in HKIA’s growth and strategic positioning. To further enhance its role as a double gateway connecting the GBA with the global market, HKIA is actively developing a novel sea-air intermodal cargo transshipment initiative.

This initiative includes the establishment of the HKIA Logistics Park in Dongguan, a regional transport hub in the GBA, and a new airside intermodal cargo pier at HKIA. By completing cargo security screening, palletisation and airline acceptance upstream, this initiative enables efficient air transshipments.

Similarly, international shipments can be smoothly imported to Mainland China through HKIA and the logistics park, adhering to Hong Kong’s air cargo regulations. The pilot scheme is currently operating smoothly, with AAHK targeting the completion of permanent facilities by 2025.

Alternative smoking products

The recently passed Import and Export (Amendment) Bill 2023 by HKSAR’s Legislative Council on June 21, 2023, marks a significant milestone. This bill permits the sea-air and land-air transshipments of alternative smoking products from Mainland China via HKIA to overseas destinations. This legislative development provides substantial support to the recovery and future growth of the air cargo industry.

Building a resilient airport community

AAHK diligently monitors the manpower situation at HKIA, actively supporting the airport community in staff recruitment through various channels in Hong Kong.

Embracing autonomous technology, AAHK has deployed autonomous tractors and autonomous staff shuttles on the apron, alongside introducing a digital apron management system, among other initiatives. These advancements reduce reliance on labour and enhance operational efficiency.

Furthermore, the HKSAR Government recently unveiled a new labour importation scheme, prioritising the employment of local workers while allowing the importation of frontline operational workers for the aviation industry. AAHK welcomes this scheme and pledges to collaborate with the HKSAR Government and the aviation industry to facilitate employer applications and coordinate cross-border transport arrangements for imported labour, as necessary.

“To meet the longterm air traffic demand of the city, HKIA is currently in the process of developing a state-of-the-art Three-runway System (3RS)”

AIRPORTS DOING BUSINESS IN ASIA PACIFIC

The 17th ACI (Airports Council International) Asia-Pacific Regional Environment Committee meeting was held in Kobe, Japan, on May 14-15, 2023. The event brought together more than 35 environmental sustainability experts from airports and World Business Partners in the Asia-Pacific and Middle East regions.

Key highlights of the meeting included a keynote speech and presentation on airport climate resilience delivered by Mathieu Boutitie, corporate executive vice president of Kansai Airports. Additionally, a foresight discussion took place, featuring guest speakers from Airbus Japan and IATA Asia-Pacific, who delved into advanced topics such as aircraft Sustainable Aviation Fuel (SAF) and the use of hydrogen fuel for aircraft and related infrastructure at airports.

During the interactive afternoon session, the ACI Asia-Pacific Regional Environment Committee collaborated with the Operational and Safety Committee, resulting in constructive outcomes for actions on airport climate change adaptation and wastewater management. Furthermore, discussions were held on initiatives to support smaller airports and airports in Small Island Developing States, as well as future topics for Green Airports Recognition. The Committee approved the establishment of a Climate Change Adaptation Working Group, tasked with developing the next guidance, with a specific focus on the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). Moreover, the Committee agreed to provide support and facilitate the adoption of Sustainable Aviation Fuel (SAF) at airports, subject to further investigations into costs, demand, availability, and ethical considerations.

ACI Asia-Pacific serves as a voice for 132 airport members, operating 623 airports across 47 countries/territories in APAC and the Middle East.

Thai ‘Aviation City’ development

Thailand’s government spokesperson, Tipanan Sirichana, has announced that the construction of an ambitious ‘Aviation City’ in the eastern Rayong province is set to commence this year. With an estimated budget of $8.8 billion, this project aims to propel the growth of Thailand’s aviation industry while transforming U-Tapao Airport, located south of Pattaya, into a prominent international hub.

Anticipated to generate approximately 15,600 job opportunities within the initial five years, the development of this 1,040-hectare enterprise received approval in 2020. However, progress was impeded by the COVID-19 pandemic, causing temporary delays.

The Eastern Airport City initiative is seeking private investment and encompasses various ongoing ventures, such as the expansion of the airport itself and the introduction of key endeavours like air cargo, Maintenance Repair and Overhaul (MRO) and the establish-

ment of the Aircraft Industry Business Group within a Free Trade Zone. Notably, this project serves as the third primary international airport in Thailand, bolstering business continuity and functioning as a promotion zone within the Eastern Special Economic Zone. With connections to 34 cities worldwide and seamless access to all ASEAN countries, U-Tapao airport holds historical significance as it was originally constructed by the US Air Force in 1966, serving as a base for B-52 bombers during the Vietnam War.

Eight time zones

IATA Asia Pacific is the leading representative and service provider for its airline members in the region, operating from its regional office in Singapore. With a presence in 37 countries and the support of 19 country and area offices spanning eight time zones, a dedicated team at IATA drives the industry’s priorities.

It claims to foster strong collaborative relationships with governments, airports, air navigation service providers, and regional industry organisations to ensure the effective co-ordination and advancement of aviation interests.

Its primary focus is on serving the 45 airline members based in the region, as well as contributing to the growth and development of the aviation industry as a whole. IATA Asia Pacific actively engages with governments, advocating for the recognition of aviation’s immense value, which includes supporting over 47 million jobs and contributing approximately $1 trillion to the regional GDP.

To enhance infrastructure and streamline operations, it spearheaded industry initiatives such as OneID and Digital Cargo, aimed at improving efficiency and reducing costs.

Additionally, IATA prioritises the development of human capital for the future of air transport. In 2019 alone, IATA Asia Pacific’s Regional Training Centre in Singapore provided training to more than 1,650 aviation professionals from over 100 countries, ensuring a skilled workforce capable of meeting the evolving demands of the industry.

Chinese airport developments

On the afternoon of April 19, CAAC (Civil Aviation Administration of China) administrator Song Zhiyong met in Beijing with a delegation led by Lam Sai-hung, secretary of Transport and Logistics Bureau of the Hong Kong SAR. The two sides exchanged views on further promoting the development of civil aviation in Hong Kong and deepening exchanges and co-operation in civil aviation between the mainland and Hong Kong.

Chinese gateway Nantong Xingdong International Airport is strategically located ten km away from the city’s urban area and 100 km from Shanghai Hongqiao International Airport. Situated in close

“Chinese gateway Nantong Xingdong International Airport is strategically located ten km away from the city’s urban area and 100 km from Shanghai Hongqiao International Airport”

proximity to entrances onto Shanghai-Xi’an Highway and Shenyang-Haikou Highway, which connect Sutong Yangtze River Bridge and Chongqi Bridge, the airport enjoys good accessibility from the southwest. The well-developed ground transportation facilities in Nantong ensure smooth traffic flow to and from the airport. Recognised by CAAC as a “Shanghai international aviation hub auxiliary airport,” Nantong Xingdong International Airport serves as a vital transportation hub in the region.

While the airport’s international and domestic cargo business thrives, it is actively accelerating the growth of this aviation industry. Notably, projects such as the regional distribution centres of SF Express, CAMECO and Apex Air have been successfully completed. Additionally, more than ten prominent navigation organisations and enterprises, including the oriental base of the Flight Inspection Center of the CAAC and Shanghai YTO Express (Logistics) have established their presence at the airport. In line with its expansion plans, the airport has commenced construction of a new terminal building spanning 52,000 sq m, along with related ancillary facilities. This state-of-the-art terminal will feature 11 air bridges, enabling a capacity of five million passenger trips and 200,000 tonnes of cargo. Furthermore, despite the challenges posed by the pandemic, airport construction in China has persevered. As of the end of 2021, the country boasted nearly 250 operational commercial airports. According to the Australia-based CAPA – Centre for Aviation, most airports experienced a decline in passenger numbers compared to 2020, resulting in financial losses. However, ten new airports were inaugurated during the year, with the most significant being in Chengdu, the country’s fifth most populous city. Chengdu’s existing airport, Shuangliu, was already one of the busiest in China. The newly established Tianfu Airport has the potential to surpass Shuangliu in terms of prominence, although the distribution of differing business models in a city designated as a “central hub” for the entire country remains uncertain.

The financing of new airports has raised questions, considering the Chinese government’s constrained revenue due to a sharp economic contraction, resulting in an infrastructure funding gap of nearly $1 trillion, which is comparable to the US economic rescue package. CAPA highlights that the shift in rankings, with Guangzhou Baiyun International Airport overtaking Atlanta as the world’s busiest airport in 2020, was unforeseen, given that Guangzhou is the country’s third-largest city. The unprecedented events and twists in the air transport industry during the chaotic first year of the COVID19 pandemic played a significant role in reshaping airport rankings. While Baiyun International Airport has slipped in global ratings since then, it remained the busiest airport in China in 2021.

“While the airport’s international and domestic cargo business thrives, it is actively accelerating the growth of this aviation industry”

MARK YOUR DIARIES: MESSE PACKS ITS BAGS FOR SINGAPORE

Leading industry trade fair organiser Messe München (MM) is making a groundbreaking move by expanding its international logistics cluster to Southeast Asia. From 1 to 3 November 2023, the highly anticipated inaugural edition of the transport logistic Southeast Asia trade fair will welcome key industry players, including DP World, Dubai South, DHL, dnata, Changi Airport and Etihad in Singapore.

The timing of this event is astutely chosen, as global crises have triggered a shift in established trade routes, compelling the industry to seek new and reliable ways to connect global markets. Singapore, already a prominent hub, holds immense significance in this development and is poised to further enhance its dynamism as a geopolitically trusted region.

The enthusiasm surrounding transport logistic Southeast Asia is palpable, with the current demand exceeding expectations.

“The current occupancy of two halls at the Sands Expo and Convention Centre already exceeds the originally expected size of the exhibition. We are currently planning to add a third hall,” confirms Michael Wilton, CEO of MMI Asia, the regional subsidiary of Messe München. This expansion will provide up to 10,000 sq m of exhibition space for both exhibitors and visitors. Alongside the core themes of global logistics, such as digitisation and sustainability, the associated conferences will also focus on resilience, addressing the evolving needs of the industry.

Singapore’s historical prominence as a key trade hub in Asia has attracted numerous global logistics service providers, who have established branches and regional headquarters there. Additionally, the strength of the Singapore shipper network further enhances its appeal. The three-day event will serve as a valuable platform for supply chain and distribution network managers, facilitating direct access to these esteemed companies and enabling them to showcase their services and products to the market.

Dr Robert Schoenberger, head of transport logistic exhibitions, emphasises the strategic significance of the expansion into Southeast Asia, saying: “With Southeast Asia, we are expanding our transport logistic portfolio to include a new and dynamic world region. This allows us to attract new customers and partners to our show and support our existing customers in expanding into emerging markets.”

Messe München, known for organising world-leading events in the transport logistics and air cargo industry, continues its tradition of excellence with transport logistic Southeast Asia, which joins a prestigious series of trade fairs held in Mumbai, Shanghai, Istanbul, Johannesburg, Miami and Munich—the largest logistics event and flagship show.

Top ranking

Singapore’s top ranking in the World Bank’s Logistics Performance Index reaffirms its position as a strategic logistics hub, with the ASEAN countries as a whole gaining prominence in this industry. This places transport logistic Southeast Asia at the heart of a flourishing hotspot. Singapore secured the highest scores in the categories of logistics service quality, competence, and infrastructure. Situated strategically on the Strait of Malacca, the city-state boasts one of the world’s foremost transshipment hubs, with its port handling an impressive 37 million TEUs (Twenty-foot Equivalent Unit), second only to Shanghai. The newly opened Tuas Port is projected to add an additional capacity of 65 million TEUs. The Asia-Pacific region also holds significant importance in the airfreight market. Overall, the ASEAN countries are rapidly closing the gap with China, the largest consumer market and production hub, establishing themselves as reliable strategic partners from a geopolitical perspective.

Award-winning Singapore

In May, Changi Airport Group (CAG) celebrated a remarkable year of air traffic recovery and travel revival at the prestigious Changi Airline Awards (CAA) 2023. This high-profile event, held at the esteemed Shangri-La Singapore, witnessed the presence of more than 150 representatives from approximately 70 airlines. The guest of honour, S Iswaran, minister for transport and minister-in-charge of trade relations, graced the occasion. Now in its 16th year, the CAA recognises airlines for their efforts in strengthening and growing the Singapore air hub.

Among the 24 awards presented across six categories, including cargo, the top airlines in terms of cargo carriage — FedEx Express, China Airlines, Aerologic, and Scoot — demonstrated the highest

“The current occupancy of two halls at the Sands Expo and Convention Centre already exceeds the originally expected size of the exhibition”

MESSE MÜNCHEN SINGAPORE

cargo volume after Singapore Airlines (SIA). Singapore Airlines’ collaboration with DHL Express played a pivotal role in reinforcing Singapore’s position as a critical air cargo and e-commerce logistics hub. Since August 2022, SIA has been operating DHL Express B777 freighters to the United States of America via North Asia points, marking the delivery of a home-based freighter aircraft to Changi after more than a decade.

Lee Seow Hiang, chief executive officer of CAG, expressed his confidence in Changi Airport’s full recovery and acknowledged the unwavering commitment of the airport community in maintaining its status as the world’s best airport for years to come.

As transport logistic Southeast Asia debuts in Singapore, it represents a significant milestone in Messe München’s endeavours to leverage the city-state’s thriving logistics industry and unlock the region’s growth potential. With a focus on innovation, collaboration, and market expansion, this trade fair aims to forge valuable connections, showcase cutting-edge solutions and shape the future of global transport logistics and air cargo.

Singapore voices

“Singapore is the gateway to the greater Southeast Asia region and the most dynamic and exciting hotspot for transport and logistics right now. Many global companies are already active here, and many more want to come to reap the rewards of the attractive conditions.

By offering transport logistic and air cargo Southeast Asia, we are creating a platform for shippers and transport and logistics service providers to develop and expand their business in the region. We are experiencing great interest in our new trade fair across all modes of transport,” remarks Michael Wilton, managing director of MMI Asia, Messe München’s regional subsidiary.

Jost Lammers CEO of Munich Airport: “I congratulate Messe München on its decision to establish an offshoot of the transport logistic trade fair in Singapore. Against the background of the agreement on the liberalisation of traffic rights between the EU and the ASEAN countries in 2022, the launch comes at exactly the right time and will further boost relations between the two strong economic regions. The Munich Premium Hub is already well

connected to Southeast Asia with two daily flights to Singapore and Bangkok, and we are optimistic that more destinations are to come.”

Lammers also emphasises: “One-third of all German airfreight volume to and from Southeast Asia is generated in the ‘powerhouse of southern Germany’ – this offers further growth potential for the Munich hub.” Asok Kumar, EVP Global Air Freight at DB Schenker, also sees enormous potential: “Southeast Asia is a playing field for new business opportunities in logistics. We are confident that both export growth and consumer demand will bounce back there, also because of the overall upturn of the intra-Asia consumer market. As a logistics player with a presence in all Southeast Asian countries, we are prepared to support our customers’ needs for end-to-end supply chain solutions in these complex yet promising markets.”

Peter Dressler, Vice President Logistics, Infineon Technologies AG, confirms the great importance of Southeast Asia for Infineon: “We have sites in Malaysia, Indonesia, Singapore, Thailand and the Philippines. Many production partners are in the Southeast Asian region. Singapore is an important hub for us in logistics, not only because of its location, but also because the focus there is on highly automated and digitised logistics processes. This fits in with our own business as a semiconductor manufacturer, but above all it enables the speed and reliability that our customers and we need.”

Ms Jaisey Yip, Vice President Cargo Business Division, Changi Airport Group, adds: “Despite economic headwinds, Southeast Asia’s air trades with the rest of the world continued to expand over the past four years. Given the expectation of strong long-term progress with urbanisation and industrialisation, Southeast Asia is primed for growth in manufacturing, trades and logistics. The Changi air cargo hub, being in the heart of Southeast Asia, will have a critical role to play in global supply chains, facilitating the flow of international goods with its well-developed connectivity, cargo infrastructure and capabilities.”

Prof Dr Christopher Stoller, President of the Aircargo Club Deutschland, who moderated the discussion, also saw positives in the further strengthening of Singapore: “We see Singapore as another important link in the international supply chains that serve Germany as a business location,” he said.

“Singapore is the gateway to the greater Southeast Asia region and the most dynamic and exciting hotspot for transport and logistics right now”