Asia-Pacific Airports - Issue 2, 2019 by Asia-Pacific Airports Magazine

The official publication of ACI Asia-Pacific www.aci-asiapac.aero

In the spotlight: Cargo Focus on: Cargo In review: ACI Asia-Pacific/World Conference

Issue 2, 2019 www.aci-apa.com

Special report: Jewel Changi Airport Plus: ASQ Winners & Industry news

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ASIA-PACIFIC AIRPORTS MAGAZINE

CONTENTS

Asia-Pacific Airports Issue 2, 2019

View from the top

Regional director, Patti Chau, reflects on her decision to leave her post at the end of the year, ACI Asia-Pacific’s important advocacy role and looks forward to some future events.

Asia-Pacific Airports takes a closer look at the latest cargo trends and developments at a handful of the region’s biggest freight hubs.

Regional News

A snapshot of some of the biggest news stories from across the region.

ACI News Senior manager for external relations, Vivian Fung, reports on the latest ACI news, views and developments from the busy Asia- Pacific region and across the world.

Top cargo airports

Leading the way We discover more about Hong Kong International Airport’s plans to ensure that it remains the world’s busiest cargo airport for the foreseeable future.

World in motion The challenges of growth, innovative technology and the customer experience were just a few of the topics on the agenda at this year’s ACI Asia-Pacific/World Annual General Assembly Conference & Exhibition in Hong Kong, writes Joe Bates.

The UAE’s star performer Joe Bates talks to Faisal Al Mulla, director of cargo business management at Dubai Airports, operator of Dubai International Airport (DXB), the biggest cargo gateway in the Gulf and the sixth busiest in the world.

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ASIA-PACIFIC AIRPORTS MAGAZINE

CONTENTS 30 Rising to the challenge

40 Cargo giant

Taoyuan International Airport was one of the fastest growing cargo hubs in Asia-Pacific in 2018, writes Joe Bates.

32 Going digital

Niranjan Navaratnarajah, cargo industry director for Unisys Asia Pacific, argues that real-time data is fundamental to a connected cargo supply chain to reduce idle time and increase visibility, transparency and security.

36 Handle with care

Perishables are a growing source of cargo revenue in Dubai. Bernd Struck, dnata’s senior vice president for UAE Cargo and DWC airline services, talks to Joe Bates.

Asia-Pacific Airports (APA) www.aci-apa.com Editor Joe Bates joe@aci-apa.com +44 (0)1276 476582 Design, Layout & Production Mark Draper mark@aci-apa.com +44 (0)208 707 2743

APA Issue 2, 2019

Published by Aviation Media Ltd PO BOX 448, Feltham, TW13 9EA, UK Managing Director Jonathan Lee jonathan@aci-apa.com +44 (0)208 707 2743 Advertising Manager Jonathan Lee jonathan@aci-apa.com +44 (0)208 707 2743

Cathay Pacific has the fleet, network and facilities in Hong Kong to grow its freight business in a challenging year for the cargo industry, writes Joe Bates.

42 Jewel in the crown

Asia-Pacific Airports finds out more about Singapore’s new mega retail, hospitality and leisure development, Jewel Changi Airport.

46 Bigger and better

We pay tribute to the 2018 Airport Service Quality (ASQ) customer experience award winners and talk to some of the CEOs of the successful gateways.

48 Industry news News, views and reviews from ACI’s regional and global World Business Partners.

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Asia-Pacific Airports (APA) is published four times a year for the members of ACI Asia-Pacific. The opinions and views expressed in APA are those of the authors and do not necessarily reflect an ACI policy or position. The content of this publication is copyright of Aviation Media Ltd and should not be copied or stored without the express permission of the publisher.

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VIEWPOINT

VIEW FROM THE TOP Regional director, Patti Chau, reflects on her decision to leave her post at the end of the year, ACI Asia-Pacific’s important advocacy role and looks forward to some future events.

s most of you will know by now, I have announced my decision to step down as regional director of ACI AsiaPacific at the end of the year to return to Vancouver where my focus can be more on my young family. It was one of the most difficult decisions I have ever had to make, but after 15 years with ACI Asia-Pacific and living in Hong Kong, I believe the time is right for me to return home and start a new chapter. It has been an absolute honour to work for and be associated with ACI, the voice of the world’s airports, since 2004. I have enjoyed the experience immensely, learnt a lot and forged many lasting friendships on my journey. I would like to take this opportunity to thank the Board for their guidance and unfailing support and engaged leadership over the years. This has proved instrumental in helping make ACI Asia-Pacific the strong and effective organisation it is today. The global search for my successor is now well under way and we will bring you news of any developments in due course. I wish every success to whoever takes on the role and, am confident, that they will inherit a dedicated team and a strong organisation well positioned to play a crucial role in helping shape the future of aviation in Asia-Pacific, as the global market and demand continues to shift eastward. APA Issue 2, 2019

REPRESENTING MEMBERS’ INTERESTS

It has, of course, been business as usual for the Regional Office over the last few months as representing the interests of our members remains our top priority. We continue to advance and support our members on economic policy matters, in particular, our members in India, Malaysia and Australia. While ACI does not advocate a particular ownership model, we do advocate that governments make decisions based on facts and, prior to any privatisation, they should ensure that a clear and consistent legal and regulatory framework exists. Our commitment to sustainability remains strong. Airports worldwide have been leading climate action with annual reductions announced every year. AsiaPacific’s airports have already started delivering with 54 airports in the Airport Carbon Accreditation programme, six of which are in Level 3+. Despite the different pace of economic development in our region, discussions are in progress at our Board on members’ necessary efforts for advancing towards carbon neutrality. Capacity building for our members in need is high on our agenda in our diverse region. By the end of July 2019, it is anticipated that seven and two APEX in Safety and Security reviews respectively will have been completed at Asia-Pacific and

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COMBATTING THE THREAT OF DRONES

Drone-related airport disruptions have become a growing threat for airports worldwide and all industry players have a key role to play in keeping airspace and airports safe when it comes to drones. Collaboration amongst all parties is required. As such, ACI is calling for the global development of harmonised regulations and standards on the matter. ACI’s stance on drones is essentially two-fold. Firstly, we believe that the main bodies for enforcement activities and

initiating anti-drone measures are the relevant national authority and local law enforcement agencies. Secondly, we believe that it is incumbent on all industry stakeholders to protect themselves and to work in coordination with each other. Following the well-publicised drone incident at London Gatwick Airport at the end of 2018, ACI published an advisory bulletin in January. The advisory encourages airports to initiate dialogue with their national authorities and local law enforcement agencies on a risk-based approach to drones and to draw up a Concept of Operations and Standard Operating Procedures for anti-drone measures at airports in advance. We are able to offer assistance to any members who might need further advice on airport preparedness for potential disruptions caused by drones, so please do reach out to our staff for assistance if you think we can be of help.

UPCOMING EVENTS

At the regional level, one of our key working plans is to prepare for the 56th Conference of Directors General of Civil Aviation, Asia and Pacific Region, which will be held in Kathmandu, Nepal, in August. We will attend this important ICAO meeting and will also submit papers to reiterate ACI’s position on various key issues including capacity building, APEX in Environment, climate change and ACI initiatives in supporting persons with disabilities. Finally, as we march into the second half of 2019, we are excited to bring a number of networking opportunities to your attention. First up is the 2nd ACI Customer Experience Global Summit, hosted by PT Angkasa Pura I (Persero) in Bali, Indonesia, on September 2-5. Then, in October, The Trinity Forum will be coming to Qatar, for the first time. And before we conclude the year, we’ll be in Abu Dhabi for Airport Exchange in November. Please mark your calendar for any or all of these exciting events and the networking opportunities that they present, and I look APA forward to seeing you there! www.aci-apa.com

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Middle East airports. These reviews help ACI Asia-Pacific better understand the safety and security issues in the region, as well as shape meeting agendas on safety and security. ACI has also enjoyed success in the global arena recently, reaching an agreement with IATA and Worldwide Airport Coordinators Group to reform the governance structure of the Worldwide Slot Guidelines (WSG). The new governance structure is designed to ensure an agile and robust process for maintaining and continuously improving the WSG, which will be renamed the Worldwide Airport Slot Guidelines (WASG). As a result, for the first time since the establishment of the WSG in 1974, airport operators are acknowledged to be equal partners along with airlines and slot co-ordinators in the determination of slot allocation policies at global level. Today, more than 200 airports worldwide require slot co-ordination because they have insufficient capacity to meet demands at all times of the day, of which around 66 (or 32%) of these reside in Asia-Pacific and the Middle East. Co-ordination based on global standards helps to maximise utilisation of existing capacity, avoid delays and improves the passenger experience. The new agreement was signed at a meeting in Seoul and all parties agreed that new governance and increased collaboration provides an opportunity to further modernise slot allocation mechanisms to the benefit of the travelling public and the aviation community at large.

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SECTION NEWS TITLE ANOTHER MILESTONE FOR HONG KONG’S SKYCITY Hong Kong International Airport’s vision to transform itself from a city airport to an airport city is a step closer to reality following the handing over of a second key SKYCITY site to developers. Developers Roxy Limited, the wholly owned subsidiary of New World Development Company Limited, will build facilities in line with the airport’s plans to make SKYCITY a major retail, dining and entertainment (RDE) venue. The handing over of the keys to Site A2 follows a similar ceremony in May 2018 when airport operator, Airport Authority Hong Kong (AAHK), handed over Site A3 to Roxy Limited. The 25-hectare SKYCITY is set to be located just a short stroll from HKIA’s passenger terminals and will be conveniently accessible by rail, road and a network of footbridges. Scheduled to be opened in phases from 2023 to 2027, the RDE facilities being developed by New World Development will take up a maximum floor area of 350,000 square metres. According to AAHK, the RDE facilities in SKYCITY will introduce an array of leading international ‘technovation’ brands to the city and brand experience-based entertainment, such as Hong Kong’s first indoor and outdoor kart track, AR and VR interactive game facilities and kids experiential zone.

NEW TECHNOLOGY TRANSFORMING THE PASSENGER JOURNEY IN DOHA Hamad International Airport (HIA) has launched the second phase of its innovative Smart Airport programme, which it claims will initiate an exciting major digital transformation of the passenger journey through facial biometric recognition across all key passenger touchpoints. The system, currently under trial, is a central piece of Doha airport’s digital strategy and combines passengers’ flight, passport, and facial biometric information in a single electronic record at the self-check-in kiosk or mobile app. Subsequently, only the passenger’s face is required for verification at the self-service bag-drop, automated security gate, and the automated boarding gate, making the experience fast and seamless. HIA’s chief operating offcer, Badr Mohammed Al Meer, says: “Our approach to identity management is unique and holistic, in that we foresee wide-scale deployment of biometric capability across both mandated and voluntary passenger touchpoints while addressing customer data privacy concerns in line with relevant local and international regulations.” APA Issue 2, 2019

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passengers per annum facility expected to be issued by the end of this year. Initial reports indicate that it will have its own luggage conveyor belt system and automated passenger transport link to the existing terminal. The new runway approved by the Thai government in April 2019 is expected to cost $700 million subject to it passing an environmental and health impact study conducted by the National Environment Board. If approved, its construction could start later this year and finish in 2021, effectively ensuring that Bangkok Suvarnabhumi has the capacity to handle up to 94 aircraft movements per hour as opposed to 64 today.

SYDNEY’S INITIATIVE TO AID VISUALLY IMPAIRED TRAVELLERS Sydney Airport has launched a service that it claims enables blind and low vision travellers to confidently navigate the airport through a smartphone connection. Launched in partnership with Aira, the service provides visually impaired visitors and passengers with instant access to the information they need to explore Sydney Airport’s terminals. “This new service will significantly improve the airport experience for the visually impaired community,” enthused airport CEO, Geoff Culbert. “The trial we recently completed at T2 Domestic was a game changer for the participant and that’s something we’re really excited about. “We welcome 44.4 million passengers a year through the airport and we’re continually looking for innovative ways to make the journey better,” he said. Vision Australia CEO, Ron Hooton, said that the technology makes the world instantly more accessible for more than 380,000 people in Australia who are blind or have low vision. He said: “Airports can be difficult environments to navigate for people who are blind or have low vision. Becoming an Aira access location means the community can visit Sydney Airport without worrying if there will be somebody there to help them make their way to check in, find their gate or access any other of the airport’s facilities.” www.aci-apa.com

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MAJOR UPGRADE FOR BANGKOK SUVARNABHUMI Bangkok Suvarnabhumi is set for a major upgrade following Airports of Thailand’s announcement that it will build a second $1.3 billion terminal and the Thai government’s approval of a third runway. The new terminal will have a different design and possible location to the one proposed in the original master plan, which was shelved following criticism that it was inadequate to meet the airport’s needs and too far from the existing passenger complex. State-owned Airports of Thailand (AoT) has given no time scale for the development of Terminal 2, with tenders relating to the design and construction of the new 30 million

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EVENTS: REGIONAL ASSEMBLY

World in motion

The challenges of growth, innovative technology and the customer experience were just a few of the topics on the agenda at this year’s ACI Asia-Pacific/World Annual General Assembly Conference & Exhibition in Hong Kong, writes Joe Bates.

opes were high that this year’s joint ACI Asia-Pacific/World Annual General Assembly Conference & Exhibition (WAGA) in dynamic Hong Kong would be one of the biggest and best yet, and with a varied and busy conference programme, 900 delegates and 60 exhibitors from across the globe, it didn’t disappoint. The event began with welcoming addresses from Seow Hiang Lee, ACI AsiaPacific president and CEO of Changi Airport Group; Fred Lam, CEO of Airport Authority Hong Kong; Carrie Lam, Chief Executive of the Hong Kong Special Administrative Region; and Martin Eurnekian, chair of ACI World, president of Aeropuertos Argentina 2000 and CEO of Corporacíon América Airports. Lee got events under way by welcoming delegates to Hong Kong, outlining the importance of aviation to the economic development of cities, countries and regions, and highlighting some of the challenges and opportunities facing airports going forward. “The Asia-Pacific region has been a key driving force contributing to the world’s robust air traffic growth for the past decade, although APA Issue 2, 2019

with growth, comes challenges,” he said. “ACI forecasts that eight out of the top ten fastest growing countries for passengers in 2017-2040 will be from Asia-Pacific and the Middle East. There is no one-size-fits all in how we manage, fund or invest in our airports, although recent trends show that where there is sound regulatory framework, privatisation is a viable way to finance much needed infrastructure investments as a means to increase capacity. “Amidst the anticipated growth and building capacity, we in the aviation industry, in co-operation and collaboration with government and stakeholders, need to provide a good passenger experience, keep the system safe, secure, efficient, economically and environmentally sustainable. It is important that we listen carefully to the needs of the communities that we all serve.” He was followed by Lam who spoke about the importance of his airport to the growth and future prosperity of Hong Kong and some hugely ambitious development plans that ultimately revolved around “transforming Hong Kong International Airport from a city airport to an airport city”.

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customers and communities safely, securely and sustainably. “In light of future air travel demand, this event provides aviation leaders and industry stakeholders the opportunity to put our heads together and to think critically and creatively about key topics. “We will seek solutions including the task of accommodating growth, major developments in aircraft operations, resilience and adaptation to climate change, the customer experience revolution, new experiences in travel technologies, and innovations in security. “In an age of disruption, how can we embrace a proactive approach to providing services to customers and what are the best investment decisions during a paradigm shift in the airport business?” In her welcome address, Carrie Lam said: “With our airport sitting right at the heart of the ‘double gateway’ connecting the Greater Bay Area at the one end and the world at the other, Hong Kong offers seamless air-to-land and air-to-sea connections with a huge number of nearby destinations. “It makes perfect sense to leverage on the unique advantage of our airport to foster a wider network of inter-related business activities. Indeed, our vision is to engineer our city’s airport to become an aerotropolis with huge and high economic efficiency and diversified employment opportunities, so as to enhance Hong Kong’s position as an international business centre. www.aci-apa.com

EVENTS: REGIONAL ASSEMBLY

Talking about Airport Authority Hong Kong’s airport city plans, Lam said: “Infrastructure aside, passengers today are looking for a total travel experience, this is why we developed the idea of SKYCITY. Located a short distance from the airport, it goes far beyond the traditional notion of a shopping mall and will provide a full range of retail, dining and entertainment facilities plus offices and hotels.” He noted that HKIA had recently taken over responsibility for managing and developing the AsiaWorld-Expo centre, which hosts sporting and entertainment events as well as conventions, and revealed that he thought that such “mega developments” would help make HKIA a destination in its own right for both locals and tourists. Lam added: “Technology will shape the future of all airport operations, so we are embracing the latest technologies to offer travellers a seamless and comfortable airport experience. In the coming years, HKIA will transform the passenger journey into a fully automated, self-service process that will revolutionise the travel experience with innovative services and enhance our operational efficiency.” In terms of the bigger picture and the challenges facing airports, Eurnekian remarked: “Collectively, the airport industry has done a good job in staying ahead of the game, but we also acknowledge that the pace of change is accelerating and the airport industry must continue to anticipate and adjust to the wider world as it fulfils the demands of its

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EVENTS: REGIONAL ASSEMBLY

“The development of an aerotropolis is in line with worldwide trend, and we are embarking on various novel and exciting developments to make this happen.” In her keynote address, Dr Fang Liu, Secretary General of ICAO, highlighted the organisation’s close links with ACI, which she revealed have gone from strength to strength since ACI World moved its headquarters to Montréal. “Since ACI moved to Montréal it has been able to engage with ICAO much more meaningfully and cost effectively on all aspects of our political, policy and technical mandates,” enthused Liu. “Its close physical proximity has helped immeasurably in terms of our experts and senior management developing closer working relationships. The new dynamic has produced clear benefits for both governments and airport operators.” A superb start to the conference continued with a must attend leaders forum, which featured some of the most high profile airport bosses in the business – Sheikh Aimen bin Ahmed Al Hosni (Oman Airports Management Company); Emmanuel Menanteau (Kansai Airports); Dick Benschop (Royal Schiphol Group); Deborah Flint (Los Angeles World Airports); Elena Mayoral (Madrid Barajas); and AA2000/Corporacíon América Airports’ Eurnekian. Al Hosni revealed that passenger numbers across Oman’s airports has soared by 27% and 10% in the last two years, hot on the heels of operator, Oman Airports Management Company (OAMC) opening APA Issue 2, 2019

new state-of-the-art terminals at Salalah and Muscat airports. The new additions have helped transform the country’s airport system, but he reminded delegates that costly new infrastructure might not necessarily be the solution to an airport’s capacity constraints. “Advancements in technology continue to make it possible to process more passengers with existing facilities, so new terminals and runways aren’t always the answer to capacity issues,” he noted. The only non-airport person on the panel was Cathay Pacific CEO, Robert Hogg, who was generally sympathetic to the capacity challenges faced by airports. Next up was a panel discussion entitled ‘A New Era in Aircraft Operations’ involving Joe Wilding, co-founder and chief technology officer of Boom Supersonic; Dorothy Reimold, the FAA’s director of strategic operations for commercial space transportation; and Vincent Loubìere, director of city integration and infrastructure for Airbus Urban Air Mobility. The final session before lunch was a ceremony to commemorate 10 years since the launch of ACI’s pioneering and highly successful Airport Carbon Accreditation programme. An impressive 264 gateways across the globe are carbon accredited under the scheme, which has become the global standard for airport operators seeking to address their carbon footprint. The afternoon of Day 1 comprised a debate about customer service innovation

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EVENTS: REGIONAL ASSEMBLY called ‘The Customer Experience Revolution’; the launch of two unique programmes designed to help airports promote service excellence and improve customer experience; and ACI Asia-Pacific’s annual Assembly. Speaking during the customer service debate moderated by Plaza Premium Group’s Mei Mei Song, Sydney Airport’s service strategy and customer experience manager, Claire Donnellan, revealed that feedback from ACI’s Airport Service Quality (ASQ) benchmarking programme has helped “drive the changes that passengers were asking for” at her airport. “Customer needs and passenger expectations change over time, meaning that something that was a basic [requirement] before, may not be considered so important today,” she commented. “Having a space for customers to break away and relax and recharge is important today as are bathrooms, although whereas years ago a standard bathroom was fine, now people actually want a sense of place experience when they go there.” Fellow panelists in the session included Abu Dhabi International Airport’s Muna Al-Ghanim; Airport Authority Hong Kong’s Chapman Fong; Corporacíon Quiport’s Carlos Criado; and San Antonio’s Karen Ellis. The two customer service related programmes launched by ACI World at the event were its new ACI World’s Customer Experience Accreditation programme – APA Issue 2, 2019

which offers a common definition and framework for customer experience management – and the Airport Customer Experience Professional Designation Programme for airport employees. Addressing the 14th ACI Asia-Pacific annual Assembly, regional director, Patti Chau, reflected on a good year for the Regional Office and the importance of aviation to the economic development of the region and global prosperity. She reminded all those in attendance that passenger traffic across Asia-Pacific grew by 6.6% in 2018, which was above the global average of 5.3%. “China and India continue to be key drivers of Asia-Pacific’s impressive growth, reporting increases of 10.2% and 15.8% respectively. The Middle East continues to be impacted by geo-political uncertainties but still managed to sustain growth of 2.1%,” commented Chau. She noted that passenger numbers at the world’s 20 busiest airports increased by 4.7% in 2018 and that half of them are in the Asia-Pacific region, which she said illustrated “the resilience and strength of our airports and their contribution to the world’s air transport growth”. Chau highlighted ACI Asia-Pacific’s expanding regional and global industry influence, paying particular attention to its strong relationship with ICAO and support for its ‘No Country Left Behind’ campaign and other initiatives.

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EVENTS: REGIONAL ASSEMBLY

The Assembly saw the appointment of three new Regional Board Directors – Mohamed Yousif Al-Binfalah, CEO of Bahrain Airport Company; Futoshi Osada, senior executive vice president of Narita International Airport Corporation; and Ming-Teh Wang, president and CEO Taoyuan International Airport Corporation. Commenting on the elections, Chau said: “I wish to congratulate all elected members of the Board. Together with our president, we look forward to working closely with our Board in strengthening ACI Asia-Pacific’s role in representing our members in the region and advocating members’ interests.” A busy and exciting day ended with a Gala evening on top of one of the tallest buildings in Hong Kong – the indoor observation deck on the 100th floor of the International Commerce Centre in West Kowloon to be precise! ACI World’s Annual General Assembly, followed by the now traditional ACI-ICAO AMPAP Graduation Ceremony, ensured an upbeat start to Day 2. They were followed by a keynote address from futurist and CEO of Prescient, Dr Amy Zalman, who then handed the stage over to KMPG’s Anson Bailey who presided over a panel that contemplated what might be next for the industry in terms of the passenger experience and new technologies.

Steve Lee, Changi Airport Group’s chief information officer, said that he believed that airports increasingly had to “think outside of the box” when it comes to new innovations such as Changi’s pioneering Jewel Changi Airport development and planned Terminal 5. “Innovation is 5% inspiration and 95% perspiration,” said Lee, noting that Changi Airport Group would carry out “tons of experiments to prepare for T5,” which is due to open in the 2030s. “It is all too easy to talk about it [Terminal 5], but it is hard to do it. It is hard to convince people to do it. It is hard to make changes, and it is hard to do on so many other levels at the time as remaining 100% focused on the customer.” He added that how “man and machine” work together in the future in the age of robotics and artificial intelligence, will also prove crucial to the future growth and prosperity of airports. Vancouver International Airport’s vice president for planning and innovation, Steve Hankinson, talked about the success of YVR’s ‘FutureXPRESS’ Living Lab, which it created in 2018 to help senior government officials from the US and Canada better understand the benefits of biometrics technology. The lab, he said, gave them a glimpse of what the future could hold and, just as importantly, the need for internationally adopted standards across the globe. www.aci-apa.com

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EVENTS: REGIONAL ASSEMBLY Hankinson told the audience that such was the success of the decision that YVR was still having conversations with the Canadian government today about the biometrics they witnessed in the living lab. While facial biometrics, which he described as the future of identity management, is set to be adopted by the US-Canada trusted traveller programme, NEXUS, from June 2019. “We, as an industry, really spend a lot of time talking about innovation and technology, but I urge you to go back and make sure that your regulators are coming on the journey with you,” said Hankinson. “FutureXPRESS has paid massive dividends for us.” Fellow panelists in the session, called The NEXTT Generation, included Northern Kentucky International Airport’s chief innovation officer, Brian Cobb, and Arup’s director for advanced digital engineering, Alan Newbold. APA Issue 2, 2019

The futuristic theme of the day then switched to Google’s industry leader for finance and travel, Lucy Werner, who shared her thoughts on the growing role technology will play in people’s lives going forward. The event ended with a security thread. ACI World’s security, facilitation and IT director, Nina Brooks, first launched new ACI Handbooks on the Insider Threat and Cybersecurity, before her head of security and facilitation colleague, Nathalie Herbelles, moderated a fast-moving session on Innovation in Security. Her panel was made up of Adelaide Airport Limited’s Emma Boulby; NUCTECH’s Daniel Goh; Aviation Service Security’s Ben Smith; and Heathrow Airport Limited’s Simon Wilcox. Next year’s ACI Asia-Pacific Regional Assembly, Conference and Exhibition will be hosted by Kansai Airports and held in Nara, Japan, on April 21-23, 2020. See you there!

APA

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Regional update Senior manager for external relations, Vivian Fung, reports on the latest ACI news, views and developments from the busy Asia-Pacific region and across the world.

NEW ADDITIONS TO ACI ASIA-PACIFIC BOARD Some familiar faces to ACI Asia-Pacific members will play an even greater role in the development of airports across the region over the next three years after being elected to the Regional Board at the 14th ACI AsiaPacific Regional Assembly in Hong Kong. The new additions are Mohamed Yousif Al-Binfalah, CEO of Bahrain Airport Company; Futoshi Osada, senior executive vice president of Narita International Airport Corporation; and Ming-Teh Wang, president and CEO of Taoyuan International Airport Corporation. Commenting on their election, regional director, Patti Chau, noted: “I wish to congratulate all elected members of the Board. Together with our president, we look forward to working closely together to strengthen ACI Asia-Pacific’s role in representing our members in the region and advocating members’ interests.” The Regional Board determines the overall development strategy of the region and is APA Issue 2, 2019

made up of 25 aviation business leaders from across Asia-Pacific.

WELCOME TO TWO NEW MEMBERS The fast growing ACI Asia-Pacific region is excited to welcome another two airport members to the ACI family – Palmerston North Airport in New Zealand and Fukuoka International Airport in Japan. Palmerston North, operated by Palmerston North Airport Limited, handled 657,515 passengers in 2018 and has the ambition to become “New Zealand’s leading regional airport”. By contrast a total of 23.9 million passengers passed through Fukuoka International Airport in 2017, whose vision is to become “one of the best international airports in East Asia” based on its extensive airline route network across both East and Southeast Asia. As of June 2019, ACI Asia-Pacific represents 112 airport members, operating 599 airports in 49 countries and territories.

September 2-5 ACI Customer Experience Global Summit Bali, Indonesia

October 30-31 The Trinity Forum Doha, Qatar

2019

2020

November 26-28 21-23 April, 2020 ACI Airport Exchange ACI Asia-Pacific Regional Abu Dhabi, UAE Assembly, Conference & Exhibition Nara, Japan

ACI ASIA-PACIFIC BOARD PRESIDENT

Seow Hiang Lee* (Changi Airport Group Pte Ltd, Singapore)

FIRST VICE PRESIDENT

Emmanuel Menanteau* (Kansai Airports, Japan)

SECOND VICE PRESIDENTS

Kjeld Binger* (Airport International Group, Jordan) Fred Lam* (Airport Authority Hong Kong, Hong Kong)

SECRETARY-TREASURER

Sheikh Aimen bin Ahmed Al Hosni* (Oman Airports Management Company, Oman)

IMMEDIATE PAST PRESIDENT

Tan Sri Bashir Ahmad Abdul Majid** (GMR Airports Limited, India)

REGIONAL BOARD DIRECTORS

Mohamed Yousif Al-Binfalah (Bahrain Airport Company, Bahrain) Badr Mohammed Al-Meer (Hamad International Airport, Qatar) HE Ali Salim Al Midfa (Sharjah Airport Authority, UAE)

Faiz Khan (Fiji Airports, Fiji) SGK Kishore (GMR Hyderabad International Airport Limited, Hyderabad, India)

Sasisubha Sukontasap* (Airports of Thailand Public Co Ltd, Thailand) Ming Teh Wang (Taoyuan International Airport Corporation)

Xue Song Liu* (Beijing Capital International Airport Co Ltd, China)

Kejian Zhang (Guangdong Airport Authority, China)

Guruprasad Mohapatra (Airports Authority of India, India)

REGIONAL BOARD DIRECTOR (WBP)

ACK Nair (Cochin International Airport Limited, India)

Greg Fordham (Airbiz Aviation Strategies Pty Ltd, Australia)

SPECIAL ADVISORS

Geoff Culbert* (Sydney Airport, Australia)

Raja Azmi Raja Nazuddin (Malaysia Airports Holdings Berhad, Malaysia)

Bon Hwan Koo (Incheon International Airport Corporation, South Korea)

Eric Delobel (Cambodia Airports, Cambodia)

Yun Qin (Shanghai Airport Authority, China)

Bryan Thompson (Abu Dhabi Airports, UAE)

Chang-Wan Son (Korea Airports Corporation, Korea)

* WGB member **Regional Advisor on WGB

The ACI Asia-Pacific region represents 112 members operating 599 airports in 49 countries and territories in Asia-Pacific and the Middle East. www.aci-apa.com

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SECTION ACI ASIA-PACIFIC TITLE NEWS AERODROME WORKSHOP

The Republic of Palau, an archipelago of over 340 islands in the western Pacific Ocean, hosted an Aerodrome Workshop in Koror in May 2019 and ACI was in attendance to discuss capacity building initiatives and a host of other issues. The annual workshop is organised by the US Federal Aviation Administration (FAA) and this year’s theme was ‘Transforming Pacific Island

REGIONAL TRAFFIC TRENDS

The latest provisional traffic figures from ACI show that the region enjoyed mixed fortunes in April with passenger numbers declining by 1% in Asia-Pacific while the Middle East recorded a 3.3% rise in throughput. In Asia-Pacific, where year-to-date growth is still positive at 1.8%, the April dip in fortunes was primarily down to a 3.9% dip in domestic passenger traffic. ACI World director general, Angela Gittens, notes: “Given the usual strength of the region’s air transport market, this represents a major shift. The slowdown has been particularly pronounced since the start of the year and has affected most major markets in the region. “China’s domestic market has remained relatively resilient to this trend until now. The country’s economy has slowed down, and indications are that this regional trend may continue throughout the year.” APA Issue 2, 2019

Nation Aviation Industry through Innovative Learning and Excellence’. ACI was represented at the event by ACI Asia-Pacific’s deputy regional director, Ada Tse, and ACI World’s ACI Global Training manager, Issa Castro, who attended the workshop and gave presentations on ACI Global Training, ACI’s Airport Excellence (APEX) Programme and the Regional Office’s Small Airports Assistance Programme.

April’s upturn in passenger traffic in the Middle East represented a strong bounce back from a negative March – when it was the only region to report a decline in numbers (-0.3%) – and means that it has registered a 1.2% increase in passengers during the first four months of 2019. In comparison, Europe (+4.8%), North America (+3.5%), Africa (+8%) and Latin America-Caribbean (+6%) all reported healthy passenger growth in April to ensure that year-to-date growth of between 3.9% (North America) and 7.4% (Africa). ACI notes that Africa has benefited from “several tailwinds”, such as the recovery of tourism in North Africa, rising oil prices and the launch of the Single African Air Transport Market. These factors, points out ACI World, have allowed passenger traffic across the region, once “subject to significant volatility”, to grow by at least 6% per month since October 2018.

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SECTION ACI ASIA-PACIFIC TITLE NEWS

REGIONAL DIRECTOR TO DEPART AT THE END OF THE YEAR

A global search is on to find a successor to ACI Asia-Pacific regional director, Patti Chau, who has announced her intention to stand down from the role at the end. “After working in ACI Asia-Pacific as well as living in Hong Kong for the last 15 years, I feel that the time is right to return to my home town of Vancouver and focus on my young family in Canada,” explains Chau. “It is an honour to have been associated with ACI for the last 15 years. The experience has been both fruitful and rewarding, while forging lasting friendships along the way. “I also feel that I am leaving on a high with strong foundations built in the last decade, putting ACI Asia-Pacific in a solid position to take advantage of the future growth as the aviation gravitation centre continues to shift eastward. “I wish to thank the Board for the guidance and unfailing support. The engaged leadership has made ACI Asia-Pacific strong and effective.” ACI Asia-Pacific president, Seow Hiang Lee, notes: “On behalf of the Board, I wish to thank Patti for her contributions to ACI Asia-Pacific over the past 15 years. She has been with ACI Asia-Pacific from the very beginning, moving to Hong Kong in 2004 [when the Pacific Office relocated there] and worked wholeheartedly for the successful merger of ACI’s former Asia and Pacific regions before being appointed regional director of ACI Asia-Pacific in November 2011.

ADVOCACY EFFORTS REMAINS TOP PRIORITY

As you would expect, the advocacy efforts of ACI Asia-Pacific never stop and the last few months have been particularly busy with staff representing the interests of the region’s airports at a host of key aviation events. These have included regional director, Patti Chau, joining a panel discussion on the challenges of developing a smart aviation system at the 2019 China Civil Aviation Development Forum in Beijing. Fellow panellists at the May event hosted by the Civil Aviation Administration of

“Despite the great diversity in our region, under Patti’s leadership, ACI Asia-Pacific has developed solid relations with international organisations across the aviation industry, with senior levels of national governments and with the various ACI regions. “These partnerships have been effective in defending the interests of airports and promoting professional excellence in airport management and operations.” Chau will continue in her role through the end of 2019 to ensure a seamless transition process with the new regional director. China included government representatives, airports, airlines and ICT providers and manufacturers. The primary focus of the forum was on developing intelligent aviation against the backdrop of rapidly rising passenger demand. Deputy regional director, Ada Tse, was also in China in May, delivering an opening address at the 4th China Airport Services Conference, organised by the China Civil Airports Association. Attendees at the event included officials from China Civil Aviation Administration and State Administration for Market Regulation.

APA APA

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Asia-Pacific Airports takes a closer look at the latest cargo trends and developments at a handful of the region’s biggest freight hubs.

here is no doubt that this is going to be a challenging year for cargo with almost all of the region’s airports reporting a decline in volumes during the first quarter of 2019, principally due to the ongoing trade tensions between China and the US and a slowing down of the global economy. The dip in tonnage wasn’t entirely unexpected though as despite air freight across Asia-Pacific and the Middle East growing by 2.4% and 0.1% respectively in 2018, both regions experienced a significant drop off in traffic in the second half of the year. Indeed, such was the slowdown that ACI admits that “the impact and uncertainties of the trade war between China and the US will continue to cast a shadow over air freight demands in 2019”. ACI’s latest traffic figures show that cargo tonnage in Asia-Pacific and the Middle East declined by 5.7% and 2.3% respectively in the first four months of 2019. And the region’s airports are not alone as global freight figures have fallen by 2.6% over the same period, with only Africa (+3.6%) and North America (+0.7%) reporting year-to-date growth. It is worth noting that February marked the largest global monthly decline in cargo volumes since 2013, a drop of 5.4%, not

helped by significant downturns in the world’s three biggest cargo markets – AsiaPacific (-12%), Europe (-3.1%) and North America (-1.6%). “With trade conflicts between the United States and its major partners remaining unresolved, and geopolitical tensions in the Middle East flaring up again, the indications are that 2019 could be a difficult year for the air freight market,” says ACI World director general, Angela Gittens. “The global backdrop remains weak for both emerging and advanced economies and it remains uncertain whether trade tensions can be resolved and whether key macroeconomic indicators such as consumption and direct investment will regain momentum before the end of the year.” The one bright spot for Asia-Pacific airports throughout the last 12 months has been the upward trajectory in the e-commerce and pharmaceutical sectors. Over the next few pages we talk to a handful of the region’s biggest cargo airports to find out more about their cargo facilities, current trends and expectations for 2019. One thing for certain is that at the time of writing, the region will do well to better last year’s performance, when seven of the region’s top 10 cargo gateways recorded APA annual increases in tonnage. www.aci-apa.com

SPECIAL REPORT: CARGO

Top cargo airports

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SPECIAL REPORT: CARGO

Leading the way We discover more about Hong Kong International Airport’s plans to ensure that it remains the world’s busiest cargo airport for the foreseeable future.

ong Kong International Airport is quite simply the biggest cargo gateway on the planet, handling 700,000 tonnes more freight per annum that its nearest rival (Memphis) and 1.2 million more than third placed Shanghai Pudong. It has held the No.1 status since 2010 and although its annual throughput only grew by 1.4% to 5.1 million tonnes in 2018, it outpaced that of its closest competitors in an increasingly tough market for Asia-Pacific airports impacted by the ongoing trade tensions between the US and China. Airport Authority Hong Kong’s executive director for commercial, Cissy Chan, is more than aware of the negative impact the trade war is having on her airport, as cargo volumes at the gateway have declined by 5.4% in the first quarter of 2019. However, she remains hugely optimistic about the future as, in time, the dispute that has had an adverse affect on the cargo volumes of most Asia-Pacific airports, and particularly those with strong links to China and the US, will be resolved. APA Issue 2, 2019

And she also knows that few other airports have expansion plans for the future that are as ambitious as those of Hong Kong International Airport (HKIA). For in addition to its $18 billion (HK$141.5bn) capacity enhancing ThreeRunway System (3RS) programme that includes plans to add a new runway and passenger terminal, HKIA is making significant additions to its cargo facilities as it bids to capitalise on its close links to Mainland China and status as the transfer hub for freight shipments between Europe and Asia. Indeed, Chan is quick to point out that Hong Kong’s excellent multi-modal links to the Greater Bay Area ensures that its market covers a population of 70 million people across the Guangdong-Hong Kong-Macao Greater Bay Area region. While its route network – the airport is currently home to 120 airlines serving 220 destinations across the globe, including 50 in Mainland China – means that it is within five hours flying time of half the world’s population. “The two most important factors behind our success, and why I am confident that

Image courtesy of Hactl.

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SPECIAL REPORT: CARGO

HKIA will continue to grow long into the future, is our location and connectivity,” she enthuses. “This, and the ability to accept cargo up to three hours ahead of flight departures, effectively means that shipments can reach half of the world’s population within eight hours of arriving at our doors.”

EXISTING FACILITIES

HKIA’s host of cargo facilities includes the world’s largest multi-level cargo terminal, the 2.6 million tonnes per annum capacity SuperTerminal 1 operated by Hong Kong Air Cargo Terminals Limited (Hactl), Asia Airfreight Terminal (AAT) and the Cathay Pacific Cargo Terminal. The latter facility, operated by Cathay Pacific Services Ltd (CPSL), cost HK$5.9 billion to build and is capable of handling an annual throughput of 2.6 million tonnes of cargo. AAT is capable of handling 1.5 million tonnes of cargo per annum across its two facilities meaning that between them the airport’s three main cargo handlers and the DHL Central Asia Hub (CAH) are currently equipped to handle in excess of 7.4 million tonnes annually.

NEW CARGO INFRASTRUCTURE

AAHK is working with the Alibaba Group to build a global smart logistics network to foster more inclusive trade. The collaboration entails the creation of a 380,000sqm ‘Smart Hub’ on a 5.3-hectare site at Kwo Lo Wan in the South Cargo Precinct of the HKIA that will eventually become the third largest warehouse in Hong Kong with a capacity of 1.7 million tonnes of freight per annum when fully operational. Set to be built and operated by Cainiao Network – the logistics arm of the Alibaba Group – airport CEO, Fred Lam, previously told Asia-Pacific Airports magazine that AAHK wants to establish “a world-class digital logistics centre in Asia” that serves the fast-growing global cross border e-commerce trade and strengthens Hong Kong’s international competitiveness. According to AAHK, the complex will be future-proofed, with high design specifications for large-scale, cutting-edge robotics and automation as well as temperature-controlled features when it opens in 2023. DHL is also expanding at the airport by investing HK$2.9 billion on growing its CAH. The multi-year project, set to be completed by 2022, will increase the www.aci-apa.com

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SPECIAL REPORT: CARGO

facility’s capacity by 50% to 1.06 million tonnes per annum. Central to the new, improved CAH will be an enhanced material handling system that will improve productivity and raise the facility’s capacity from 75,000 to 125,000 items per hour. Also on the cards are plans for a new transhipment handling facility as part of the 3RS project and a new intermodal cargo complex to boost HKIA’s capacity to accommodate land-air and sea-air shipments. Chan notes that the opening of the Hong Kong-Zhuhai-Macau Bridge (HKMB) means that it now takes only 45 minutes to travel between the airport and Zhuhai in Mainland China, while it is possible to reach most of the major ports in the Pearl River Delta within 2.5 hours by boat. In addition to the new infrastructure, AAHK is investing HK$70 million to buy more cool dollies and build apron shelters to protect temperature-controlled shipments from the weather.

KEY TRENDS

According to Chan, the overall cargo business and development of HKIA is being driven by three major trends – the growth of e-commerce, the globalisation of the supply chain and increased demand for high-value products. She notes that global e-commerce experienced a compound annual growth rate (CAGR) of 26% between 2012 and 2017 and shows little sign of slowing down, driving the rise of the courier and fast parcel business. All the major express mail operators (DHL, FedEx and UPS) have a presence at HKIA, although she says that the 24/7 global demand for e-commerce shipments means that the bulk of them are handled as belly cargo on passenger flights. “While traditional cargos have grown by 2% over the past few years, e-commerce has grown by nearly 30%, and this has introduced a growing B2C dynamic to the cargo business at Hong Kong and other airports across the world,” says Chan. APA Issue 2, 2019

Without a doubt e-commerce has fuelled the 5% rise in bellyhold cargo at HKIA over the last few years, although 160 daily freighter flights ensure that all-cargo aircraft continue to account for 60% of the freight handled at the airport today. In terms of the global supply chain, she says that Hong Kong has benefited from the fact that few manufactured items today are 100% built from components sourced from one country. “The parts of high-end products such as electronics and mobile phones, for example, are often manufactured in different parts of the world and transhipped through strong hubs like ourselves for assembly at a final destination, and this trend has had a significant impact on global air cargo,” Chan explains. When it comes to high value goods, Chan notes that the world’s population is getting richer and the growing middle classes, especially in China, increasingly want better and more expensive products and are prepared to pay for them no matter where they are located. As a result, HKIA is a key destination in North East Asia for handling high-value

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GLOBAL MARKET

Image courtesy of Hactl.

cargo such as telecom products (70%), semi-conductors (55%) and computers and related products (40%). The market has also seen strong growth in the handling of high-value pharmaceuticals, with volumes expected to increase by around 16% per annum until at 2023. Indeed, the growing importance of pharmaceuticals convinced HKIA to become IATA Centre of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) certified in July 2017 and more recently launch a pharma corridor with Brussels Airport in Belgium. It will also come as no surprise to learn that HKIA is a major centre for the handling perishables ranging from seafood to cut flowers. In fact, perishable shipments soared by 12% to 380,000 tonnes in 2018, ensuring that they now account for about 8% of the total cargo volumes at HKIA. Chan adds that Hong Kong’s airport community is the first in the world to be certified as IATA CEIV Fresh, which she says “epitomises HKIA’s excellent capability in the transportation and handling of perishable cargo”. Hactl and CPSL achieved the certification in March and Cathay Pacific, as an airline,

Although HKIA is inextricably linked to Mainland China, it isn’t actually overly dependent on it for trade as it currently only accounts for 11% of the airport’s annual cargo volumes. HKIA’s biggest markets are actually the US and Canada (17%), Southeast Asia (17%) and Europe (15%) followed by Mainland China and then Chinese Taipei (8%), Japan (8%), South Korea (5%), India (4%) and the UAE (4%). “People always assume that Mainland China will be our largest market and there is no denying that it is hugely important to us, but our three biggest markets today are North America, Southeast Asia and Europe, which between them account for about 50% of our cargo volumes,” says Chan. “Our transhipment volumes grew by 9% in 2018 with markets like India, Bangladesh, Thailand and Japan growing by 28%, 23%, 21% and 18% respectively. Diversity such as this will prove crucial to our success going forward.” She concludes: “How important is air cargo to the airport? I would answer that by saying that air cargo is more important to Hong Kong than the airport. “To give that some context. Although air cargo only accounts for 2% of the freight handled in Hong Kong, it is responsible for 42% of Hong Kong’s external trade value, outperforming the other channels of road, river and sea, and we expect this APA dominance to increase over time.” www.aci-apa.com

SPECIAL REPORT: CARGO

joined them in May this year. Like the CEIV Pharma accreditation, it is basically a mark of excellence, only this time for the handling of perishables. She says: “Our development strategy is to capture a greater share of the highvalue market, expand our cross-border e-commerce business and grow transhipments through the addition of new state-of-the-art facilities that will better equip HKIA to handle more freight and services.”

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SPECIAL REPORT: CARGO

Cargo volumes at DXB dipped by 0.5% to 2.6 million tonnes in 2018, which can be considered a satisfactory performance taking into account the general softness in demand globally during the year, and the fact that cargo operations at DXB have effectively been limited to bellyhold shipments on passenger airlines and cargo flights operated by our three main integrators and Emirates SkyCargo since all pure cargo operators moved to Dubai World Central (DWC) five years ago. DWC now handles close to a million tonnes of freight a year and some 110 freighter APA Issue 2, 2019

flights on a weekly basis for Emirates SkyCargo and other international operators However, DXB remains Dubai’s largest cargo airport and has maintained its status as one of the world’s top cargo hubs thanks to its top-notch logistics infrastructure and services, great connectivity by air, sea and land, and Dubai’s established position as one of the world’s most sought-after destinations for tourism, trade and business.

WHO OPERATES THE DIFFERENT CARGO FACILITIES?

Emirates manages the main cargo facilities, more specifically the Cargo Mega Terminal (Dubai Cargo Village) at DXB and the SkyCentral facility at DWC. Dnata as Dubai Airports’ official ground handling agent,

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SPECIAL REPORT: CARGO

manages the facilities that serve other airlines and are strategically located around the airport at both DXB and DWC. In addition to Emirates SkyCargo and dnata, the integrators have their own terminals that function independently and utilise the airport assets to keep running their businesses smoothly.

WHAT ARE THE TOP FIVE CARGOES HANDLED AT DXB?

By weight, the top five commodities handled at DXB today are Fruits and Vegetables; Meat (Frozen and fresh); Flowers; Mobile phones; and Seafood. DXB is the only hub in the region to have the General Distribution Practices (GDP) certification and we are also certified by IATA’s Centre of Excellence for Independent Validators (CEIV). Both certifications, combined with our state-of-the-art infrastructure, put us in a unique position in terms of our capabilities and have led to an increase in pharma shipments at DXB.

HOW IMPORTANT IS EMIRATES TO DXB’S CARGO SUCCESS?

Emirates is Dubai’s flag carrier and the single largest airline operator at DXB, connecting the city to 100 plus destinations around the world. Considering that bellyhold freight accounts for up to 60% of DXB’s cargo

volumes, it is safe to say that Emirates’ operations are central to the success of the cargo and logistics business in Dubai.

WHAT ARE THE PROJECTIONS FOR CARGO TRAFFIC AT DXB IN 2019 AND BEYOND?

While the year started on a positive note with DXB’s cargo growing 4.1% to 641,250 tonnes in the first quarter 2019, we expect the growth to be sluggish this year due to a slowdown in the global economy. We are in the process of finalising our projections for the year and will share them once they are ready.

CAN YOU TELL US MORE ABOUT YOUR PLANS TO DEVELOP THE AIRPORT’S CARGO FACILITIES?

We anticipate growth in the special commodities segment, which includes pharmaceuticals and e-commerce – both of which are time-sensitive and require quick turnarounds so, for now anyway, we don’t require any physical expansion of our existing cargo facilities. We will, however, continue to look at the latest available technological solutions and process improvements at DXB to maximise efficiency and deliver smooth connections and speedy turnarounds for all our customers. www.aci-apa.com

APA

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SPECIAL REPORT: CARGO

Rising to the challenge Taoyuan International Airport was one of the fastest growing cargo hubs in Asia-Pacific in 2018, writes Joe Bates.

aving climbed its way into the top five busiest cargo gateways in Asia-Pacific in the last year, Taoyuan International Airport (TPE) is determined to stay there by enhancing its services and facilities to ensure the even faster and more efficient handling of freight shipments. Without doubt, 2018 was a good year for TPE, which in handling a record 2.3 million tonnes of freight (+2.4%) overtook Tokyo Narita to become the region’s fifth biggest and fastest growing Top 5 cargo hub. Operator, Taoyuan International Airport Corporation (TIAC), attributes last year’s upturn in volumes to a “reshuffling of the supply chain” which saw a significant increase in the number of goods being manufactured in Southeast Asia, as opposed to China, and shipped through TPE. The change in dynamics meant that although exports from Chinese Taipei were down, imports grew and TPE handled more transfer shipments than ever before, particularly cross-border e-commerce consignments, many of which were handled at TPE’s state-of-the-art Express Handling Unit. In terms of dedicated freight facilities, TPE has four cargo terminals operated by

APA Issue 2, 2019

TACT (a subsidiary of China Airlines); EGAC (Eva Air’s cargo subsidiary); Farglory FTZ; and Everterminal Co Ltd (Everter) respectively, which between them are capable of handling around 2.6 million tons of import, export and transfer cargo annually.   The airport is also served by integrators FedEx, UPS and DHL, which boast their own on-site facilities, while TIAS and EGAS provide ground handling services for cargo operations. TPE’s long-term cargo development plans include proposals to open a huge new cargo area with bonded warehouses for cross border logistics on a 48-hectare site and a second Free Trade Zone on land yet to be acquired by TIAC as part of its highly ambitious Taoyuan Aerotropolis project. But it is not resting on its laurels until then as TIAC is currently working with TACT and Taipei Customs to jointly develop a new automated e-commerce handling area which is expected to be ready within two years. It previously worked with EGAC to expand its e-commerce trans-shipment area and Jimmy Liu, deputy director of TPE’s Cargo Department, admits that more improvements might be need to ensure that TPE is equipped to cope with the continued rise in demand for e-commerce shipments.

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globally to grow by up to 5% per annum from 2020, a trend that will result in cold chain logistics spending growing fastest in Asia and North America. “We expect some positive feedback and cargo traffic from the industry once our cool chain facilities are significantly improved,” says Liu. Despite all the good news, Liu anticipates that 2019 will be a tough year for TPE and most of the region’s big cargo hitters due to the negative impact of the trade war between China and US.    He notes that TPE could be hit particularly hard as TIAC has invested a lot of effort on extending its route network to Mainland China, which now extends to 458 weekly flights to 54 destinations. And his fears appear to be justified at the moment as cargo volumes at TPE in the first five months of this year are 7.5% down to 856,457 tonnes, compared to the same period a year ago. “If the trade war persists, cargo traffic with China will be inevitably lessened,” says Liu, noting that in response to the dispute, Taipei’s Civil Aeronautics Administration is working with the country’s national carriers to extend their route networks to ASEAN countries south of Chinese Taipei.   “We are aware that some of the supply chains are moving to ASEAN countries as a back-up plan for the concerning trade war, and this potentially presents us with some new opportunities for trans-shipment traffic due to our geographical location at the APA centre of East Asia,” enthuses Liu.

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SPECIAL REPORT: CARGO

“It’s not an easy task for us to meet the enormous rise in demand from the e-commerce industry because ideally they require dedicated, high-efficiency facilities with sizeable working spaces,” says Liu. He notes that the airport is also working hard to make improvements to existing processes and procedures in a bid to speed up handling times to meet the needs of shippers while also fulfilling government security and customs requirements. TIAC’s ultimate goal is for TPE to become the leading gateway for e-commerce shipments between ASEAN countries and the US and between Australia/New Zealand and Europe.  Another growing trend at Taoyuan International Airport is the rise in demand for temperature controlled products ranging from fresh fruit and cut flowers to pharmaceuticals.   In fact such is the demand for pharma products that the airport formed the Taoyuan Cargo Community last year and began working with IATA to conduct CEIV training in order for TPE’s different cargo operators to gain CEIV Pharma certification. China Airlines is the first to become IATA CEIV Pharma certified while the process is still ongoing for the other five companies in the Taoyuan Cargo Community – Taiwan Air Cargo Terminal Limited (TACT); Eva Airways; Evergreen Air Cargo Services Corp (EGAC); Evergreen Airline Services Corp; and Farglory Free Trade Zone Corp.   Liu notes that the accreditation process is important as IATA expects biopharma sales

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SPECIAL REPORT: CARGO

Going digital Niranjan Navaratnarajah, cargo industry director for Unisys Asia Pacific, argues that real-time data is fundamental to a connected cargo supply chain to reduce idle time and increase visibility, transparency and security.

e need to securely modernise today’s mostly manual and fragmented cargo distribution processes by going digital. Let’s face it, most of the cargo industry still uses paper-based processes with duplicated rounds of data entry exacerbated by disparate operational and accounting systems, all of which creates the potential for errors and inefficiencies. This despite the fact we all know that by automatically capturing and using a single data set throughout the process, based on the trusted Air Waybill (AWB), the cargo industry can modernise and transform to a connected cargo supply chain. Why change now? The cargo industry must digitalise to reduce shipment idle time to improve the customer experience, APA Issue 2, 2019

optimise asset utilisation, improve security and reduce unnecessary storage costs. Indeed, for the air cargo industry to attract more goods movement from other forms of transport, it must be easier, quicker, more secure and cost effective. To achieve this, the entire cargo industry needs to adopt centralised datasets that are updated in real-time using mobile devices, automation and Internet of Things (IoT), to hasten processes and allow buyers and sellers to access up-to-date and accurate information. This ‘connected cargo supply chain’ offers customers greater visibility, certainty and satisfaction. In my view the industry needs to make three key changes to create a connected cargo supply chain – use centralised datasets; capture real-time data by securely integrating mobility, IoT and data

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• CAPTURE REAL-TIME DATA

Images courtesy of Hactl.

automation; and use AI and predictive analytics for improved visibility, efficiency and security.

• USE CENTRALISED DATASETS

The cargo supply chain is complex with many entities involved in the delivery process, including booking agents, airlines, customs, freight forwarders, and road/rail transport. Each uses separate forms (often paper) and manual processes (such as phone calls) – creating out-of-date data, inaccuracies, opportunities for fraud and hindering end-to-end tracking. Buyers and sellers must move their business to online e-commerce platforms, which can be their own in-house platform or one that spans a community of forwarders, airlines, general sales agents and handlers, such as Unisys’ Digi-Portal. Such real-time platforms enable buyers to interact with automated real-time inventory and not rely on stored data. In addition, growth in consumer online purchases has not only increased small parcel deliveries, it has created an expectation for faster deliveries and where customers can easily track their deliveries. Real-time data, used across the supply chain, enables greater visibility and traceability of shipments. The good news is that this transformation is very achievable: with 63% penetration of e-AWB in the cargo globally, the industry is well

Capture real-time data by securely integrating mobility, IoT and data automation to make updates on the spot and exchange information faster to reduce the time that cargo is left on the ground. Asian cargo markets compete against each other to be seen as easy to do business with, yet only Japan, Singapore and Hong Kong/ China rank in the top 20 of The World Bank’s Logistics Performance Index. Reducing costly shipment idle time is key. Unisys estimates that, on average, cargo is in the air for only 15% of its total delivery time – for the remainder it is on the ground. The industry should aim to cut idle time to around 50%. In a secure connected cargo supply chain, information flows automatically and mobile devices, wearables, sensors, voice enabled commands, robots and drones enable staff to process shipments on the spot, updating data in real-time. Also, weigh bridges automatically exchange data with systems preventing data errors and fraud; and IoT enabled sensors on shipments proactively alert cargo systems and staff if a shipment has been left behind, in the wrong location, or is distressed. In ‘smart warehouses’, drones augment air cargo transport and help the workforce process more shipments to optimise warehouse real estate for a better return on investment. Imagine an operator talking to a device to execute an action or a robot performing repeatable actions more often, such as warehouse inventory checks? Some stakeholders are actually already doing something like this by using sensors to track vehicle movements to update end customers on the status of their delivery and alert www.aci-apa.com

SPECIAL REPORT: CARGO

poised to move to centralised e-AWB based centralised datasets in the next 12-18 months. And as eight of the top ten countries of origin for e-AWBs are in Asia, and five of the six top airports of origin are Asian, we can expect this region, the ‘world’s manufacturing bowl’, will lead the way.

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SPECIAL REPORT: CARGO operators to take swift action to avoid movement blockages. But adoption is fragmented and an industry-wide holistic approach is needed to transform the whole supply chain.

â&#x20AC;˘ USE AI AND PREDICTIVE ANALYTICS FOR IMPROVED VISIBILITY, EFFICIENCY AND SECURITY

More accessible and accurate cargo records also help manage, process and track cargo, particularly sensitive items like medicine or food, which must be stored at certain temperatures. Artificial intelligence powered by predictive analytics can help freight forwarders to ingest and analyse data in real-time, to determine if sensitive shipments require attention or if shipping conditions need to be modified. Drones and robots can then quickly reach shipments to take preventive action to avoid distress. Predictive analytics can also generate data to enable airlines to better plan their routes, avoid inclement weather and validate the security of shipments. And real-time visibility into shipments also helps locate misplaced items. Integrated with such targeting tools, the connected cargo approach would improve the clearance and tracking of shipments from loading to arrival. Finally, moving to a digital data-based cargo supply chain enables the integration of APA Issue 2, 2019

advanced security information and event management (SIEM) tools, such as the Unisys Stealth platform with automated Dynamic Isolation, to protect customer information and shipment data from being accessed or modified by unauthorised parties, preventing data theft and cargo fraud. Biometric-based identity management, such as fingerprints, face scans or voice recognition can be used to verify the identity of customers and drivers who drop off/pick up freight to ensure that goods get into the right hands more securely and efficiently than if they had just undergone a manual check. At an industry level, IATA has outlined a vision for an efficient air cargo industry relying on full paperless processes and smart data sharing, securely identifying the real customer, enabling innovative and value-added services to customers. It is supporting the required transformation by modernising air cargo standards and exploring new technologies to assess their potential impacts and use within the air cargo supply chain. Arguably this is good business sense as a connected cargo ecosystem based on centralised real-time data extracted from the AWB will streamline, automate and transform the cargo handling process from booking through to billing, enabling greater accuracy, speed, visibility and security for the airline and a better service APA and experience for their cargo clients.

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SPECIAL REPORT: CARGO

Handle with care Perishables are a growing source of cargo revenue in Dubai. Bernd Struck, dnataâ&#x20AC;&#x2122;s senior vice president for UAE Cargo and DWC airline services, talks to Joe Bates. HOW IMPORTANT IS CARGO TO THE SUCCESS OF DNATA?

We have continually expanded our global cargo operations in recent years and today provide quality and reliable cargo handling services at 45 airports in 12 countries. In financial year 2018/19, our teams moved 3.1 million tons of cargo, 85% more than in financial year 2014/15. Our international airport operations and UAE airport operations business units, which also look after ground and passenger handling services, account for 52% of dnataâ&#x20AC;&#x2122;s total revenue.

HOW MANY TONS OF FREIGHT DID YOU HANDLE IN DUBAI IN 2018 AND WHAT IS THE OUTLOOK FOR THIS YEAR?

In financial year 2018/19 our teams handled 727,000 tons of cargo at the two Dubai airports, Dubai International (DXB) and Dubai World Central (DWC). Besides processing general cargo, we are experts at handling sea/air cargo, live animals ranging from crocodiles, sharks and race horses to domestic pets, perishables, dangerous goods, pharmaceuticals, express courier, out of gauge cargo (helicopters, pipes, other project equipment), racing cars and vintage cars. The top two trade lanes we service are Europe and the Indian subcontinent, APA Issue 2, 2019

although we have substantial movement with other lanes, too, including the Middle East, CIS, Far East and Africa. The outlook for air cargo is optimistic in 2019. We see increased demand for our quality services and expect further growth towards the end of the fiscal year (March 2020) thanks to the Dubai EXPO, which will take place between October 2020 and April 2021. We will be upgrading our facilities and services at DWC to cater to the needs of the event.

HOW IMPORTANT TO THE CARGO/LOGISTICS SIDE OF YOUR BUSINESS IS THE HANDLING OF PERISHABLES?

Speed, reliability and controlled conditions have made air cargo the preferred mode of transport for temperature-sensitive cargo. There is a clear need for increased capacity to handle perishables and we constantly invest in infrastructure, equipment and technologies to meet the growing demand.

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SPECIAL REPORT: CARGO

Our temperature-sensitive cargo handling centres are great at dealing with loose and intact cargo, with build-up and break down requirements â&#x20AC;&#x201C; as well as dedicated storage facilities for goods such as fresh frozen and chilled fruit, meat, vegetables and flowers.

PLEASE TELL US MORE ABOUT YOUR FACILITIES FOR HANDLING PERISHABLE SHIPMENTS AT DXB?

As a company established in Dubai, high temperatures are part of our heritage. Therefore, we are very experienced in protecting temperature-sensitive cargo from the heat. Our facility at Dubai International Airport covers an area of 10,000 square metres and is capable of processing 150,000 tons of perishable cargo a year. It enables us to offer an uncompromised chilled and frozen storage and cool chain product to our airline customers in Dubai, catering

to product categories including fresh fruit, meat and pharmaceuticals. The facility was designed and built with flexibility and unique product handling requirements in mind, taking advantage of the latest cold storage technologies and designs. The cold storage areas in the centre are modular, enabling teams to manage changing handling demands with dedicated climate control capability. A web-based monitoring system is also in place to facilitate real-time management of all areas. We use state-of-the-art equipment across our operations. Our Cool Dollies, for instance, provide on request temperature-controlled transport between warehouse and aircraft. This helps us handle each consignment with special care and protects shipments from extreme temperatures on the tarmac. In 2018 our teams handled approximately 137,000 tons of perishable cargo in our facility at Dubai International, which represents 19% growth year-on-year. www.aci-apa.com

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SPECIAL REPORT: CARGO WHAT TYPE OF PERISHABLES DO YOU HANDLE ON A REGULAR BASIS AND HOW SEASONAL IS THIS MARKET?

We handle pharmaceuticals year-round. We are highly focused on providing our customers with enhancements in the safety and security of their pharma shipments. We use the latest technology, best practices and certified warehouses to ensure that every pharma and vaccine shipment that reaches the end consumer is handled in compliance with international certified standards. Fresh fruits, vegetables and meat are other commodities we handle throughout the year to cater to the domestic and regional market. Currently we see a surge in the import and transit of mangoes from the Indian subcontinent to Europe and the United Kingdom. We have also started a new lane of business importing cherries from Uzbekistan to meet the seasonal demand, and we anticipate moving 500 tons while the season lasts. Beans from Oman to Japan is another seasonal product we have been handling for years. We also handle imports of various food products from Europe for major supermarket chains.

DO YOU HAVE ANY PLANS TO UPGRADE/EXPAND YOUR PERISHABLE CARGO FACILITIES?

The past couple of years have seen a steady delivery of initiatives to optimise our operations, covering facility improvements, APA Issue 2, 2019

process changes, infrastructure upgrades and IT developments. Our operations at DXB has been awarded IATA’s Centre of Excellence for Independent Validators in Pharmaceutical Logistics (CEIV Pharma) certification. This means that we have proven our capability to manage the movement of pharmaceutical products safely and reliably, under the strictest standards. Currently our team is working on CEIV certification for our facility at DWC. To support our continued growth and safety in perishable handling we have also made significant investments in technology. In March, for example, we became the first operation to implement a global roll-out of dnata’s ‘One Cargo’ terminal operation suite across all our stations. This investment will enable us to manage our air cargo movement worldwide seamlessly and have all our operations on one cargo management IT platform using unified processes. The system will be gradually implemented, and by 2020, will have a user base of over 5,000 employees across 27 stations in 10 countries. We’ve also recently implemented a cutting-edge, cloud-based software platform, too, which enables freight forwarders, agents and airlines to plan all land transport processes with us more efficiently. This solution is the first of its kind in the aviation APA cargo industry.

SPECIAL REPORT: CARGO

Cargo giant ASIA-PACIFIC AIRPORTS MAGAZINE

Cathay Pacific has the fleet, network and facilities in Hong Kong to grow its freight business in a challenging year for the cargo industry, writes Joe Bates.

ne of the top five airlines in the world for freight tonne kilometres, Cathay Pacific is the cargo giant at its Hong Kong home base and a major player in the global market with 21 Boeing 747 freighters among its fleet of around 200 aircraft serving more than 100 destinations in 35 counties and territories. Its all-cargo fleet of 14 Boeing 747-8Fs, six Boeing 747-400ERFs and one Boeing 747-400BCF alone serve 46 destinations across the world making it a force to be reckoned with in the highly competitive Asia-Pacific, Asia-Europe and Asia-North American markets. While its state-of-the-art Cathay Pacific Cargo Terminal is one of the most modern and high-tech in the world. Opened in 2013 and operated by subsidiary Cathay Pacific Services Ltd (CSPL), its multi-storey facilities are capable of handling up to 2.6 million tonnes of cargo yearly. According to the airline’s annual accounts, Cathay Pacific and 100% owned subsidiary, Cathay Dragon, enjoyed a good 2018 characterised by “robust demand” and rising revenues. APA Issue 2, 2019

In facts and figures this equated to total revenues of HK$2.83 billion (+18.5%), 2.15 million tonnes of cargo and mail (+4.7%) carried across its network and a 14.7% rise in yields, reflecting an increase in high-value specialist cargo shipments and higher fuel surcharges. Cathay Pacific’s general manager for cargo service delivery, Frosti Lau, says that these figures alone show just how important cargo is to Cathay Pacific and the airline group. “Cargo is a huge, and often overlooked part of our business, that contributes between 20% and 30% of Cathay Pacific’s annual revenues,” he enthuses, noting that the airline enjoys roughly a 50/50 split between volumes handled in the bellyhold compartments of passenger flights and its fleet of freighters. “There are, of course, payload restrictions on some routes, but people frequently forget that we carry a significant amount of cargo on passenger flights. A Boeing 777 flight between London and Hong Kong, for example, can carry over 30 tonnes of freight in its belly, earning significant revenues. “In fact, sometimes the revenue generated by bellyhold freight is the reason a route is

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the recent agreement with Lufthansa Cargo for shipments between Hong Kong and Europe proves. As a result of the agreement, customers of Cathay Pacific’s cargo division and Lufthansa Cargo are now enjoying the advantages of the recent expansion of the carriers’ joint business agreement (JBA), which has seen the start of eastbound joint shipments from Europe to Hong Kong.   Under the JBA framework, Hong Kong is directly connected to Frankfurt, Amsterdam, Barcelona, Brussels, Dublin, London (Gatwick and Heathrow airports), Madrid, Manchester, Milan, Munich, Paris, Rome and Zurich.   In addition to the capacity provided by the airlines’ dedicated fleet of cargo aircraft, the belly space of passenger aircraft and the road feeder services of both partners can also be booked by customers.   As well as collaborating on network planning, Cathay Pacific and Lufthansa Cargo have worked closely together on IT and service enhancements since the signing of the co-operation agreement in May 2016.   Cathay Pacific’s commercial and cargo director, Ronald Lam, says: “Our co-operation with Lufthansa has reached an exciting new phase, which is of great benefit to our customers in Europe and undoubtedly strengthens one of the world’s great trade lanes.”   And earlier this year the airline gained IATA CEIV Fresh certification – the mark of excellence for handling perishables. Lau believes that the newly earned certification is more than justified, feeling that Cathay Pacific has led the way in the handling of perishables for a number of years. Its service excellence, he says, being demonstrated by the fact that all inbound perishable consignments in Hong Kong are routinely released within 90 minutes of arrival. “Our facilities, route network and services make us one of the world’s best cargo airlines and we must continually look to improve to stay there,” comments Lau. “Our recent CEIV Pharma and Fresh certifications are examples of how we are upping our game in different areas to make sure this happens.” APA www.aci-apa.com

SPECIAL REPORT: CARGO

profitable and, in certain cases, the justification for its existence when passenger load factors dip.” Like every major carrier, Cathay Pacific began to experience a slowdown in cargo volumes during the latter half of 2018 and this has continued into 2019, not helped, of course, by the ongoing trade tensions between the US and China. Indeed, the year to date has been tough for the Cathay Pacific Group with cargo and mail volumes falling 4.9% to 483,211 tonnes in Q1 2018. However, Lau refuses to be downbeat, reminding me that the airline “doesn’t just focus on China” and that transhipments from the Indian subcontinent and Southeast Asia to the US remain strong, as do the markets to Europe and Oceania. He believes that the continued growth in these sectors shows “the beauty of having a network”, and states that having a base like Hong Kong is a huge advantage as demonstrated by the number of cargo carriers and charter operators that would like to launch services to HKIA. Lau notes that the bulk of the airline’s freighter services are to the US, with demand currently being met by between 30 and 40 Boeing 747F flights per month depending on the time of year. Elsewhere, Cathay Pacific operates six to seven freighter services a week to Europe and 18 cargo flights per week to Mainland China, predominantly to cities which are the major manufacturing base for Apple and other companies producing components for mobile phones and telecommunications equipment. Each of the airline’s Boeing 747 freighters is capable of carrying between 100 and 120 tonnes of cargo per flight depending on the route, loads and types of cargo being transported. Regarding the current US-China tensions, the airline’s plan for now is to “continue to closely observe the China-US trade talk developments and their impact on global trade flows”. One thing for certain is that the airline hasn’t let the downturn in the market deter it from developing its cargo business, as

ASIA-PACIFIC AIRPORTS MAGAZINE

DESIGN & BUILD

Jewel in the crown Asia-Pacific Airports finds out more about Singapore’s new mega retail, hospitality and leisure development, Jewel Changi Airport.

he highly anticipated opening of Singapore Changi’s mega retail and lifestyle development, Jewel Changi Airport, has arguably taken non-aviation related activities at an airport to a new level and provided one of the world’s biggest hubs with a host of new revenue earning opportunities. According to Singapore Changi operator, Changi Airport Group (CAG), the concept for Jewel’s design represents the juxtaposition of a park and a marketplace. This, it says, is exemplified by the lush Forest Valley and majestic 40-metre high Rain Vortex – the world’s tallest indoor waterfall – that take centre stage in the glass and steel domed complex that boasts its own Canopy Park and over 280 shops and F&B outlets. APA Issue 2, 2019

Designed by a consortium comprising Safdie Architects, RSP Architects Planners and Engineers and Benoy, the 137,000-squaremetre retail, hospitality and leisure space acts as a central hub, connecting three of Changi Airport’s current four terminals, making it easily accessible to the public and passengers. Benoy, which led the interior design, retail and aviation facility planning for Jewel, believes that it will quickly become a new landmark for Singapore. “We’ve created a dynamic environment that becomes a unique place for travellers and residents alike. This addresses the important question of placemaking in the aviation context,” says Benoy’s director and head of its Singapore studio, Terence Seah. “In the process too, Jewel has enhanced the already world famous Changi

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DESIGN & BUILD

experience. We are confident that his development will inspire other cities to rethink the future of airports.”

CANOPY PARK

Located on the top level of Jewel, the picturesque Canopy Park covers 14,000sqm and is home to seven iconic play attractions and creative gardens in Singapore Changi’s groundbreaking new facility that promises to redefine the airport experience. Jean Hung, CEO of Jewel Changi Airport, said: “Changi Airport holds a special place in the hearts of many, especially Singaporeans, and we want to extend this special bond for everyone who visits Jewel. “The attractions and gardens in Canopy Park are designed for guests to relax or have a fun time with their families and friends, whether they reside in Singapore or are international travellers visiting Jewel. “When Canopy Park was conceptualised, we envisaged a green natural environment with play and leisure activities for people of all ages. Importantly, we wanted to create a space where activities that are traditionally conducted outdoors, are brought to an

indoor environment so that they can be enjoyed in all weather conditions.” Canopy Park guests can look forward to navigating their way through the Mirror Maze and Hedge Maze, walking or bouncing on the Manulife Sky Nets, exploring the sculptural playscape of Discovery Slides, and enjoying a gripping view of the HSBC Rain Vortex and Shiseido Forest Valley from the Canopy Bridge, a bridge with glass panel flooring suspended 23 metres above ground. Integrated with the attractions are interactive garden spaces that encourage play and imagination. Foggy Bowls features four gentle concave bowls with an element of mist and fog to create the experience of playing amongst clouds. Topiary Walk features animal topiaries such as orangutans, a crocodile, elephant, peacock and chameleon. While Petal Garden will boast seasonal displays of flowers. Along the main loop that connects these attractions are four noteworthy trees, including a pair of olive trees and the Lover’s Tree which earned its name because of its conjoined trunks. www.aci-apa.com

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DESIGN & BUILD The entrance fee to Canopy Park is S$5 (US$3.70), while access to the various attractions range from S$7.20 (US$5) to S$19.80 (US$14).

CHANGI EXPERIENCE STUDIO

Level 4 of Jewel is home to the state-ofthe-art digital experience attraction, the Changi Experience Studio. Described as a first-of-its-kind for Singapore, this aviation-themed attraction is designed to be a fun space that also takes visitors on a journey of discovery about Changi Airport. CAG’s managing director for airport operations management, Jayson Goh, enthuses: “We want the studio journey to be one where visitors can actively participate in a playful journey full of surprises that allows them to understand the story and spirit of Changi in an experiential manner. “Beyond the entertainment, visitors can learn about the past and present of Singapore’s air hub, the inner workings of the airport, and experience what makes Changi tick. “Importantly, through the various touchpoints that showcase different APA Issue 2, 2019

airport functions, Changi Experience Studio is a living tribute to the 50,000-strong airport community that makes Changi Airport what it is today. “We aspire for the studio to be a showcase of the Changi experience and service innovation. As an innovation space, the interactive exhibits will not remain static, but continue to evolve as new stories on Changi are written.” Changi Experience Studio attractions include a garden that sings, an adrenalinepumping runway race, a quest to collect airport trolleys, a battle of smiles and more. CAG promises that with a collection of over 20 different touchpoints and 10 content zones spread over 3,000sqm, the Changi Experience Studio utilises technology to present a diverse mix of unique experiences under one roof, including interactive games, projection storytelling, immersive shows and gallery exhibits. The studio opens daily from 10am to 10pm with the entrance fee costing S$25 (US$18) for adults and S$17 (USD$12.50) for children or seniors.

APA

ASIA-PACIFIC AIRPORTS MAGAZINE

CUSTOMER SERVICE

Bigger and better We pay tribute to the 2018 Airport Service Quality (ASQ) customer experience award winners and talk to some of the CEOs of the successful gateways.

t’s official, Beijing Capital, Delhi-Indira Gandhi, Mumbai-Chhatrapati Shivaji, Singapore Changi, Shanghai Pudong and Seoul–Gimpo are some of the best airports in the world for the delivery of customer service. All triumphed in ACI’s annual newly improved and rebranded ‘customer experience’ Airport Service Quality (ASQ) awards, while Bengaluru’s Kempegowda International Airport won the first ever ASQ Arrivals Award. The latter award, based on ASQ’s new Arrivals Survey, means that the Indian gateway becomes the first airport in the world to win both a Departures and an Arrivals award.   Hari Marar, managing director and CEO of operator, Bengaluru International Airport Limited (BIAL), believes that the ACI ASQ award affirms the company’s commitment to delivering an “excellent passenger experience” at Kempegowda. He says: “Our airport is on the cusp of tremendous development and we will continue to ensure our passengers have a superlative experience.” The new format of the awards, which recognise the airports around the world delivering the best customer experience in the opinion of their own passengers, means that more gateways than ever before are lauded for their customer service focused efforts, facilities and services. Indeed, a host of airports have won their first ASQ award, including Biju Patnaik in India; Muscat in Oman and Yichang Sanxia in China. APA Issue 2, 2019

China’s airports won a total of 10 awards in 2018 – Changchun Longjia, Hohhot Baita, Nanchang Changbei, Haikou Meilan, Sanya Fenghua, Tianjin Binhai, and Chongqing Jiangbei joining Beijing Capital, Shanghai Pudong and Yichang Sanxia on the winner’s podium. Indonesia was another nation with multiple award winners with a total of seven airports (Depati Amir, Sultan Mahmud Badaruddin II, Raja Haji Fisabilillah, Sultan Syarif Kasim II, Sepinggan, Silangit and Sultan Thaha) either winning again or tasting success for the first time. In fact, in the new ‘Best Infrastructure and Facilitation’ section, no fewer than seven Indonesian and eight Chinese airports are recognised in their size category.   Other nations with multiple winners included India, which in addition to Bengaluru-Kempegowda, Biju Patnaik, Delhi-Indira Gandhi and Mumbai-Chhatrapati Shivaji saw Ahmedabad, Chandigarh, Cochin and Indore-Devi Ahilyabi Holkar enjoy ASQ success.

ASIA-PACIFIC CHAMPIONS

In arguably the most fiercely competitive region of them all, passengers were unable to separate Singapore Changi, Shanghai Pudong, Delhi-Indira Gandhi and Mumbai Chhatrapati Shivaji airports for top place in the Over 40mppa category in the By Size and Region Awards. Chongqing Jiangbei and BengaluruKempegowda are the best airports handling 25-40mppa; Haikou-Meilan, Sanya Fenghua and Tianjin Binhai top for 15-25mppa; Changchun Longjia, Cochin, Hohhot Baita,

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CUSTOMER SERVICE That’s entertainment: ‘Live’ musical performances, like the one above at Dubai International Airport, are becoming increasingly popular at the region’s airports as they aim to surprise and delight passengers.

Nanchang Changbei and Sepinggan best for 5-15mppa; Biju Patnaik, Chandigarh, Indore–Devi Ahilyabai, SM Badaruddin, SS Karim and Yichang Sanxia best for 2-5mppa; and Depati Amir and Sultan Thaha the winners in the Under 2mppa category. And many of these airports triumphed again the new global categories for Best Environment and Ambience by Size; Best Customer Service by Size; and Best Infrastructure and Facilitation by Size. They include Singapore Changi, which in addition to winning the Best by Size and Region Award for Over 40mppa in Asia-Pacific, along with Beijing Capital, is also now officially the best airport in the world in the same size category for Best Environment and Ambience, Best Customer Service and Best Infrastructure and Facilitation. Others to win multiple awards include Chongqing Jiangbei (25-40mppa); Tianjin Binhai (15-25mppa); Changchun Longjia, Hohhot Baita, Nanchang Changbei and Sepinggan (5-15mppa); Chandigarh, SM Badaruddin, SS Karim and Yichang Sanxia (2-5mppa); and Depati Amir and Sultan Thaha (Under 2mppa). Videh Kumar Jaipuriar, CEO of Delhi–Indira Gandhi operator, DIAL, says: “The award is testament to the continued improvements in passenger-service that Delhi Airport has

witnessed since DIAL took over its operations in 2006. “Despite robust traffic growth, and ongoing expansion works, we have maintained our high Airport Service Quality ranking. This demonstrates the dedication, hard work and collaboration with our stakeholders.”

MIDDLE EAST

Queen Alia in Amman, Jordan, is the best airport in the Middle East in the 5-15 million passengers per annum category, while Muscat International Airport in Oman is the region’s Most Improved gateway. Talking about Queen Alia’s success, Kjeld Binger, CEO of operator, Airport International Group, enthuses: “Winning this prestigious accolade is a true reflection of our commitment to continuously enhancing the quality of services at Queen Alia and to providing our passengers with a positive travel experience, whether it be through improved facilities, expedited procedures APA or passenger offerings.” Roll of honour A full list of winners can be viewed on the ACI World website at https://aci.aero/ customer-experience-asq/asq-awards/ current-winner-2018/ www.aci-apa.com

ASIA-PACIFIC AIRPORTS MAGAZINE

INDUSTRY NEWS

Industry news News, views and reviews from ACI’s regional and global World Business Partners.

BAHRAIN’S VISION OF THE FUTURE Bahrain International Airport’s new passenger terminal will boast a host of state-of-the-art technologies that include an Automated Border Control (ABC) platform supplied by Vision-Box. The ongoing Airport Modernisation Programme (AMP) is one of the biggest national projects in the Kingdom’s history and is designed to elevate BIA’s infrastructure, facilities, and services, transforming it into a world-class boutique airport and a key driver of national economic growth. The new complex, which will raise the gateway’s capacity to 14 million passengers per annum, will be equipped with advanced biometric technology to improve safety and security as well as comfort and convenience for passengers. Mohamed Yousif Al Binfalah, CEO of operator Bahrain Airport Company APA Issue 2, 2019

(BAC), says: “One of the Airport Modernisation Programme’s most important objectives is to enhance the overall airport experience. “The new Automated Border Control platform will play a key role in achieving this goal by giving passengers more control over their journeys and streamlining time-consuming immigration and security formalities. “BAC is pleased to partner with VisionBox to bring this state-of-the-art technology to BIA. I am confident that the new platform will help to reinforce our status as a friendly and efficient airport.” In addition, 22 new eGates will enable travellers to pass through immigration checkpoints faster and with less staff involvement, while still maintaining a high level of security.

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INDUSTRY NEWS

VIETNAM SUCCESS FOR DUTCH COMPANIES Royal HaskoningDHV has signed a Letter of Intent with the Vietnamese city of Da Nang to co-operate on the development of an airport city concept at Da Nang International Airport. It will work with subsidiary, NACO, and Eindhoven International Project Office on the ambitious project, which was one of a number of trade deals signed by a Dutch delegation to Vietnam earlier this year.

THAT WINNING FEELING The Plaza Premium Lounge in London Heathrow Airport’s Terminal 2 has been voted the ‘World’s Best Independent Airport Lounge’ in the 2019 Skytrax World Airline Awards, narrowly beating its Hong Kong and Brisbane lounges which also made the global Top 10. “It is such a pleasure for Plaza Premium Lounge to once again be named as the world’s best independent airport lounge,” said Song Hoi-see, founder and CEO of Plaza Premium Group. “As a world leader in airport hospitality, we are committed to continuously enhancing our experience to alleviate the pain points of travellers. “In the past year, we have put much effort in to upgrading our service quality and adding new features – from zone planning, ambient design, furniture selection, food and beverage offerings to facilities that cater to different travel types. “Our goal remains unchanged, that is to create a journey to make travel better for all travellers.”

GOURMET DESTINATION ADELAIDE Adelaide Airport has awarded Lagardère Travel Retail the concession to create a new destination concept it is calling ‘Southern Providore’. According to Lagardère Travel Retail, the new concept will bring a truly unique and iconic South Australian experience to Adelaide Airport. It even goes as far to call it “an evolution of the icons concept”, noting that the gourmet wine and produce range in Southern Providore will be curated from “this special part of the world”. The 286sqm store will feature its own in-store ‘ute’, the FJ Holden, in recognition of the key role it played in the history of Adelaide and the supply of grocers and goods to market, dating back to 1856. Lagardère Travel Retail’s Pacific region CEO, Przemek Lesniak, says: “We are delighted that Adelaide Airport has awarded and trusted us with this exciting concept. “We understand that travel is a sensorial experience and wanted to showcase this through a regional focus, so we specifically tailored Southern Providore for the airport. It will ensure the travellers and community will enjoy a curated selection of the very best from SA, in a unique environment reflecting the region.” www.aci-apa.com

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SECTION TITLE INDUSTRY NEWS

WBP PROFILES

NEW STUDY SHOWS BENEFIT OF GUIDED PARKING SYSTEM Park Assist, LLC, has announced the results of a five-month long data-driven study conducted in collaboration with Brisbane Airport Corporation quantifying the impact of its camera-based smart sensor parking guidance system (PGS) on the airport parking experience of drivers. Described as a first of its kind study, Park Assist tested the parking behaviour and decision making of drivers – as we well as how long it took them to park – when all pilot lights and wayfinding signage associated with its PGS were switched on and and when they were switched off. Analysis of data collected from over 120,000 unique customer journeys revealed that when the PGS was in use, the time it took to park was reduced by 33% across different times, locations and types of parker. And under certain scenarios, time to park was reduced by as much as 50%. These benefits, says Park Assist, are attributable to the ability of its M4 PGS to enhance driver decision-making by providing informed real-time recommendations on where to park. “In our car parks, we design each product from the customer’s perspective and always look to innovative ways to improve the experience,” notes Brisbane Airport Corporation’s head of parking and transport services, Martin Ryan. “The parking guidance system installed combined with intelligent wayfinding is a great example of how technology can be used to reduce stress and provide a frictionless experience in car parks.” The Brisbane Study is one of several studies Park Assist’s data scientists are conducting to evaluate, design and develop products that positively impact parker experience and provide greater control to carpark owners and operators. APA Issue 2, 2019

CAM RANH INTERNATIONAL TERMINAL JOINT STOCK COMPANY Location: Cam Ranh City, Vietnam Contact: Thi Hong Minh Le, general director E: minh.lth@camranh.aero W: Under construction Cam Ranh International Terminal (CRTC) is the Joint Stock Company responsible for developing and managing the new Terminal 2 at Cam Ranh Airport in Vietnam. The terminal, which opened for business on June 30, 2018, handles all the international flights at the airport, which is located in Khánh Hòa Province on the South Central Coast. Designed to Skytrax 4-Star standards, T2 currently handles 29 international airlines that serve over 80 destinations across the world. A total of 5.21 million passengers (+43%) passed through the terminal in 2018, which is one of the modern and best equipped in Vietnam. UFL GROUP LTD Location: New Zealand Contact: Raymond Reesby, CEO E: raymond@ufl.co.nz W: www.ufl.co.nz FL Group specialise in the supply of high end architectural contract and residential furniture. We are a New Zealand owned and operated business with origins dating back over 40 years when founder and current CEO, Raymond Reesby, opened Nova Interiors, New Zealand’s first major interiors company. Today, UFL Group combines significant years of industry knowledge and extensive experience to offer an eclectic mix of some of the world’s best furniture combined with a locally produced APA range of products.