Building A Vibrant Air Cargo Hub at Singapore Changi Airport
Building A Vibrant Air Cargo Hub at Singapore Changi Airport
Building A Vibrant Air Cargo Hub at Singapore Changi Airport
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<strong>Building</strong> A <strong>Vibrant</strong> <strong>Air</strong> <strong>Cargo</strong> <strong>Hub</strong><br />
<strong>at</strong> <strong>Singapore</strong> <strong>Changi</strong> <strong>Air</strong>port<br />
30 October 2012<br />
Presented By:<br />
James Fong<br />
Assistant Vice President<br />
<strong>Cargo</strong> and Logistics Development
Contents<br />
• Quick intro & Brief History of <strong>Changi</strong> <strong>Air</strong>port<br />
• <strong>Changi</strong> <strong>Air</strong>port <strong>Air</strong> <strong>Cargo</strong> Traffic<br />
• Key Contributing Factors in <strong>Building</strong> <strong>Changi</strong> <strong>Air</strong>port as a<br />
<strong>Cargo</strong> <strong>Hub</strong>
Corpor<strong>at</strong>is<strong>at</strong>ion of <strong>Changi</strong> <strong>Air</strong>port in 2009 has enabled the<br />
group to be more focus and responsive to our partner’s<br />
needs; The roles of CAG and CAAS…<br />
• Manages and oper<strong>at</strong>es <strong>Changi</strong><br />
<strong>Air</strong>port and Seletar <strong>Air</strong>port<br />
• <strong>Air</strong>port oper<strong>at</strong>ions and<br />
management<br />
• <strong>Air</strong> hub development (e.g.<br />
promoting to airlines)<br />
• Commercial activities<br />
• <strong>Air</strong>port emergency services<br />
• Investments in foreign airports<br />
(under subsidiary <strong>Changi</strong> <strong>Air</strong>ports<br />
Intern<strong>at</strong>ional)<br />
• Industry regul<strong>at</strong>or<br />
• Safety oversight and promotion<br />
e.g. pilot licensing and certific<strong>at</strong>ion<br />
• <strong>Air</strong> hub development (e.g. air<br />
services negoti<strong>at</strong>ions)<br />
• <strong>Air</strong> navig<strong>at</strong>ion services provider<br />
• <strong>Singapore</strong> Avi<strong>at</strong>ion Academy
Loc<strong>at</strong>ion of <strong>Singapore</strong>
Loc<strong>at</strong>ion of <strong>Changi</strong> <strong>Air</strong>port –<br />
East of <strong>Singapore</strong>; Takeoff and Approach to/from the sea
Key <strong>Cargo</strong> Milestones in <strong>Changi</strong> <strong>Air</strong>port<br />
(1981)<br />
Official Opening of <strong>Changi</strong><br />
<strong>Air</strong>port<br />
(2003)<br />
Official Opening of <strong>Air</strong>port<br />
Logistics Park of<br />
<strong>Singapore</strong> (ALPS)<br />
(2012)<br />
Official Opening of Fedex<br />
<strong>Air</strong> <strong>Cargo</strong> Express (ACE)<br />
<strong>Hub</strong><br />
1975<br />
1980 1985 1990 1995 2000 2005 2010 2012<br />
(1975)<br />
Decision to develop<br />
<strong>Changi</strong> <strong>Air</strong>port to replace<br />
Paya Lebar <strong>Air</strong>port<br />
(1985)<br />
Opening of the <strong>Changi</strong><br />
<strong>Air</strong>freight Center<br />
•3million tonnes capacity<br />
•470,000 m2<br />
•9 terminals<br />
(2010)<br />
Official Opening of SATS<br />
Coolport@<strong>Changi</strong>
Masterplan of <strong>Changi</strong> <strong>Air</strong>freight Centre<br />
1<br />
2<br />
1<br />
2<br />
3 4<br />
DHL South Asia<br />
<strong>Hub</strong><br />
3 4<br />
TNT Regional<br />
<strong>Hub</strong><br />
6<br />
5 5<br />
7 South of CAC<br />
SATS<br />
Coolport@<strong>Changi</strong><br />
SingPost <strong>Air</strong>mail<br />
Transit Centre<br />
5<br />
6<br />
7<br />
24 Hour<br />
Free Trade Zone<br />
12 freighter bays<br />
4 blocks of <strong>Cargo</strong> Agent <strong>Building</strong>s and<br />
MegaPlex<br />
DNATA<br />
<strong>Cargo</strong> Terminal<br />
<strong>Singapore</strong><br />
FreePort<br />
Approx. 20km or<br />
30 mins to<br />
seaport<br />
8
Some<br />
<strong>Changi</strong><br />
St<strong>at</strong>istics<br />
<strong>Air</strong>port :<br />
Year to D<strong>at</strong>e <strong>Cargo</strong> Performance<br />
9
<strong>Singapore</strong>’s air cargo tonnage grew rapidly in 1980s-1990s;<br />
Growth slowed down in last 10 years due to changes in technology<br />
and <strong>Singapore</strong>’s economy<br />
<strong>Cargo</strong><br />
tonnage<br />
2 500 000<br />
2 000 000<br />
1 500 000<br />
1 000 000<br />
500 000<br />
0<br />
1981 1991 2001 2011
<strong>Changi</strong>’s connectivity <strong>at</strong> a glance…<br />
6,267<br />
106<br />
Flights oper<strong>at</strong>e every week<br />
Scheduled airlines*<br />
64 Country links*<br />
231<br />
58<br />
1.20<br />
Cities connected to <strong>Changi</strong>*<br />
Freighter city links<br />
Million tonnes of airfreight in first<br />
8 months of 2012<br />
D<strong>at</strong>a as <strong>at</strong> 1 Sep 2012<br />
* Including codeshares<br />
11
Strong interline opportunities to <strong>Changi</strong>’s c<strong>at</strong>chment markets of 45 cities in<br />
Southeast Asia, 15 in South Asia, and 10 in South West Pacific<br />
Oper<strong>at</strong>ors offering feeder services to<br />
South East Asian destin<strong>at</strong>ions<br />
NW11/12<br />
SIN-SOUTH ASIA<br />
No. Of Pax Flights 462<br />
No. Of Freighter<br />
Flights<br />
19<br />
No. Of <strong>Air</strong>lines 16<br />
NW11/12<br />
SIN-SOUTHEAST ASIA<br />
No. Of Pax Flights 2626<br />
No. Of Freighter<br />
Flights<br />
148<br />
No. Of <strong>Air</strong>lines 48<br />
NW11/12<br />
SIN-SOUTHWEST PACIFIC<br />
No. Of Pax Flights 454<br />
No. Of Freighter<br />
Flights<br />
20<br />
No. Of <strong>Air</strong>lines 12<br />
NW11/12: Northern Winter season<br />
(October 2011-March 2012)
Сотни<br />
Сотни<br />
<strong>Changi</strong> is g<strong>at</strong>eway to S.E. Asia, but has no freighter connectivity to Russia<br />
Opportunities in the growing trade between Russia, <strong>Singapore</strong> & S.E. Asia<br />
Good potential to tap on growing trade<br />
between <strong>Singapore</strong> – Russia, and S.E Asia -<br />
Russia<br />
Russia<br />
Trade between <strong>Singapore</strong> and Russia (Jan – Aug)<br />
20<br />
19<br />
16<br />
15<br />
10<br />
10<br />
5<br />
0<br />
Jan - Aug 2010 Jan - Aug 2011 Jan - Aug 2012<br />
Source: CAG D<strong>at</strong>a Competency Centre<br />
Trade between S.E. Asia and Russia<br />
China<br />
<strong>Singapore</strong><br />
140<br />
120<br />
100<br />
80<br />
60<br />
40<br />
20<br />
0<br />
110<br />
117<br />
100 101<br />
79<br />
2007 2008 2009 2010 2011<br />
Source: Seabury D<strong>at</strong>a
Key contributing factors in building<br />
<strong>Singapore</strong> as a <strong>Cargo</strong> <strong>Hub</strong><br />
15
Multi-Agency and Partnership Approach<br />
Government<br />
Agencies<br />
<strong>Air</strong>port & Trade<br />
Associ<strong>at</strong>ion<br />
<strong>Air</strong>lines
A Strong Logistics Ecosystem is needed to support the growing<br />
manufacturing sector in <strong>Singapore</strong><br />
Gener<strong>at</strong>ing airfreight demand for Origin / Destin<strong>at</strong>ion cargo movements<br />
2010GDP:<br />
S$304 billion (US$223 billion)<br />
Others 18%<br />
Construction<br />
Wholesale &<br />
Retail Trade<br />
17%<br />
5%<br />
12%<br />
22%<br />
14%<br />
12%<br />
Manufacturing<br />
Financial<br />
Services<br />
Business<br />
Services<br />
Transport &<br />
Communic<strong>at</strong>ions<br />
2010 Total output in<br />
Manufacturing Sector:<br />
S$270 billion (US$198 billion)<br />
Transport<br />
Engineering<br />
Precision<br />
Engineering<br />
Biomedical<br />
Manufacturing<br />
10%<br />
9%<br />
9%<br />
8%<br />
29%<br />
General Manufacturing<br />
Industries<br />
Chemicals<br />
Growth of Manufacturing Output in 2010: + 30%<br />
Source: <strong>Singapore</strong> Economic Development Board.<br />
35% Electronics
<strong>Singapore</strong>’s connectivity to the world -<br />
G<strong>at</strong>eway to Southeast Asia and Southwest Pacific
Large base of world class logistics service provides in<br />
<strong>Singapore</strong><br />
Asia /M.E<br />
19
Working with Business Partners to continuously invest in new<br />
handling capabilities to meet customers’ needs<br />
Tapping on New <strong>Cargo</strong> Segments:<br />
In addition to diversifying their cargo base,<br />
<strong>Changi</strong><strong>Air</strong>port continues to work with its business<br />
partners to target new cargo segments. Some<br />
examples include perishables, valuable cargo and<br />
express cargo<br />
The l<strong>at</strong>est cargo facility is the new Fedex <strong>Air</strong> <strong>Cargo</strong> Express<br />
(ACE) <strong>Hub</strong>, which is the first of its kind air cargo facility in<br />
the region focusing on express cargo. Oper<strong>at</strong>ing 24/7, The<br />
facility boast special on-site facilit<strong>at</strong>ion by Immigr<strong>at</strong>ion and<br />
Checkpoints Authority and <strong>Singapore</strong> Customs<br />
SATS Coolport@<strong>Changi</strong>, a 8,000 sqm on-airport facility<br />
dedic<strong>at</strong>ed perishables handling facility with multi-tiered<br />
zones with temper<strong>at</strong>ures ranging from -28°C to 18°C, offers<br />
new market opportunities for logistic players looking to tap<br />
into the cool chain business.<br />
<strong>Singapore</strong> Freeport is 22,000 sqm facility fitted with cutting edge,<br />
high security storage system for high values collectibles such as<br />
fine art, precious metals and high end wine. The facility has 24/7<br />
direct airside access to <strong>Singapore</strong>’s Free-Trade Zone.
Efficiency of Logistics infrastructure and services<br />
<strong>Singapore</strong> Ranks 1 st in the 2012<br />
Logistics Performance Index (LPI)<br />
Source: World Bank 2012<br />
21
Ensuring competitive cargo handling standards<br />
Performance of Ground Handlers are measured:<br />
Performance Standards<br />
Target<br />
<strong>Cargo</strong> documents available within 90%<br />
2 hours of passenger aircraft arrival<br />
<strong>Cargo</strong> documents available within 90%<br />
4 hours of freighter aircraft arrival<br />
<strong>Cargo</strong> available within 3.5 hours of 90%<br />
passenger aircraft arrival<br />
<strong>Cargo</strong> available within 5.5 hours of 90%<br />
freighter aircraft arrival
Trade facilit<strong>at</strong>ion through the use of IT systems<br />
Benefits for Logistics Providers,<br />
Importers and Exporters<br />
•Single interface to multiple systems<br />
•Minimum d<strong>at</strong>a re-entry and hence<br />
reduced errors<br />
•Faster trade document<strong>at</strong>ion<br />
processing<br />
•Improved efficiency<br />
Launched in October 2007, TradeXchange ® provides<br />
seamless inter-connectivity to government controlling<br />
bodies (B2G) and business partners (B2B) for easy<br />
prepar<strong>at</strong>ion and submissions of trade documents
E-freight @ <strong>Singapore</strong><br />
IATA e-freight goal: Replace paper document<strong>at</strong>ions with electronic messaging<br />
standards, to realize paper-free vision in air freight flow<br />
e-freight@<strong>Singapore</strong> started in 2010<br />
‣ Leverage IATA electronic messaging standards to capture d<strong>at</strong>a@source and for d<strong>at</strong>a<br />
re-use<br />
‣ Promote adoption of paperless freight document<strong>at</strong>ion<br />
‣ Ensure local air cargo and logistics industry remains competitive and increases<br />
productivity
4 Programme Tracks in E-freight @ <strong>Singapore</strong><br />
1. <strong>Air</strong> <strong>Cargo</strong> Agents’ IT Readiness Survey<br />
• Establish SMEs’ current IT capabilities<br />
• Identify and close gaps<br />
• Current st<strong>at</strong>us: Survey completed<br />
2. <strong>Air</strong> Freight Process Productivity Study (AFPPS)<br />
• Demonstr<strong>at</strong>e costs & benefits of e-freight@<strong>Singapore</strong><br />
• Current st<strong>at</strong>us: Study completed<br />
3. Implement<strong>at</strong>ion Plan / Call-for-Collabor<strong>at</strong>ion (CFC)<br />
• Engage industry for sustainable solutions<br />
• Priv<strong>at</strong>e-sector led innov<strong>at</strong>ion<br />
• Current st<strong>at</strong>us: Awarded funding to 3 consortia leads in Feb 2012.<br />
Solution development in progress<br />
4. Industry Outreach & Engagement<br />
• Engage industry to build interest<br />
• Current st<strong>at</strong>us: Ongoing
THANK YOU<br />
28
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