Hactl Visit (24 February 2014)

Hong Kong Air Cargo Terminals (Hactl) is one of the world-class air cargo terminals with sound facilities, innovative technology, and efficient operation. We were honored to visit Hactl. This visit can be divided into two main parts: Hactl introduction and Q&A session in the briefing room, and facilities visit.  

Group photo taken before visit

After the brief introduction, there was a Q&A session. The Hactl staff have answered all questions that let us have a deeper understanding of Hactl. 

Q&A session 
1. The performance rate on landside services (e.g. Truck waiting time, cargo acceptance time, cargo release time) always maintain to full capacity. What control policy have you made to maintain the superior service quality?

The communication is the main policy that they had made to maintain the service quality (98-99%). They always have regular meeting to their customers (airlines). Also they have Service Level Agreement (SLA) which is the agreement that balanced between airlines and Hactl and implement a standard which both agree. It is the way that is most effective and efficiency.

2. The bad weather has become ubiquitous, like the deadly snow and ice storm in America’s southern states and eastern coast for the recent days. Would these bad weather create any challenges for your company like delay for cargo or rising cost? What are the contingency arrangements to deal with the bad weather for your company?

The contingency arrangement should be the responsibility for the airlines. Airlines would decide the contingency plan to Hactl, and then Hactl would follow their plan if there were any challenges. And also Hactl would not do anything when there was rainstorm. They would follow the rule and law.

3. AAT has made a success in applying RFID for their security and operation. Do Hactl have any plan to improve their security level rather than using manual labor?

RFID is a franchised technology that used by AAT and AAT has made use of the RFID mainly to control the traffic route of the cargo. However, Hactl has its own invented information system called COSAC-Plus. COSAC-Plus is an automated handling systems which can control cargo precisely and efficiently. Besides, Hactl has invented a mobile app for truck paging. The staff, airlines, C&E and Civil Aviation Department can use the app to know the places of cargoes and where the cars are parking.

Besides, their security control centre employs more than 1,000 CCTV cameras positioned in key locations to centrally monitor activities both inside and outside of SuperTerminal 1.

4. Different cargoes may have various investigation measures by government departments like C&E and AFCD dept. What are the roles of Hactl in managing the product and information flow?

Hactl has offered some spaces for the government departments to set up their equipment for investigating the cargoes. Also, C&E can make use of the mobile app provided by Hactl for doing the random inspection. These two actions can help to smooth the product flow.

 

5. After the opening of Cathay Pacific Cargo Terminal, how does it affect the company’s business? As far as I know, most airlines in Hong Kong handle end customers through air forwarder agencies. Does the company have the intention to provide the services to the end customers like air forwarder agencies?

Although after the opening of Cathay Pacific Cargo Terminal has lowered 30% of business for Hactl, it can take it positive that Hactl has more spaces and human resources now which allow Hactl to accept more cases and handle their jobs effectively and efficiently. Moreover, Hactl has diversified its business to provide a one-stop shopping for its customers including documentation, storage, packaging and loading. Besides, for the trucking service, customers may use Hacis which is the subsidiary company of Hactl for providing logistics support services to truck to the mainland China.

 

6. The Hong Kong Government approved Airport Authority to build a third runway in 2012. Suppose the third runway is constructed, Hong Kong International Airport will be able to accommodate 620,000 flight movements per year which is 200,000 more than existing capacity. How would Hactl evolve to satisfy the increasing demand of cargo handling from the airlines in the future while at the same time keeping its current exceptional service performance?

It would benefit Hactl if the third runway builds in 2012 as there are so crowded in stands now. It is difficult to find ways to add more airlines. It will attract more airlines to Hong Kong so more products will deliver to Hong Kong too so Hactl may have the potential to increase the customers. It also make Hactls improve as they will invest more technology and facilities and expand the logistic transportation to China.



After the Q&A session, there was a session of facilities visiting. We need to wear reflective vest for safety concern and put on the earphones for visiting convenience. 

                                 

                                    Brief introduction of Hactl facilities

Facilities visiting

During the facilities visiting, we have observed the operation of Box storage system (BSS) and Container storage system (CSS). This is a valuable opportunity to experience the internal operation of the world-class facilities.

                             

                                

                                        Box storage system (BSS)

   

Container storage system (CSS)

Finally, it is impressive that we can visit the outdoor area near parking apron. The feel is fresh. We took group photo near the parking apron for the happy ending of this visit. 

Group photo taken near parking apron

In the Hactl visit, we have learned how do an world-class logistic company manage and operate its business. It is a great opportunity to experience a real international logistic system rather than just learning the concepts in the class. This visit is impressive and we are looking forward to the next visit!