EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 03

📌Weekly Logistics Highlights:

The news highlights this week include:Shenzhen Airport sets new records for passenger and cargo volumes in 2024; the container yard project at Tianjin Port is completed; the rapid growth of e-commerce and logistics in Ho Chi Minh City drives economic growth in 2024; South Korea launches a $680 million green fuel infrastructure fund...

Hong Kong, China

🔹MSC Air Cargo Partners with Hactl for Expanded Hong Kong Operations

MSC Air Cargo has chosen Hactl to handle cargo services for its newly launched flights to Hong Kong, operating three times a week. After rebranding its AlisCargo Airlines subsidiary, MSC Air Cargo aims to expand its operations in the region, leveraging Hactl's facilities and service quality for growth. The collaboration continues a successful partnership, as Hactl previously managed flights for AlisCargo during the pandemic.

Shenzhen, China

🔹Shenzhen Airport Sets New Records in Passenger and Cargo Traffic for 2024

In 2024, Shenzhen Airport recorded a passenger throughput of 61.477 million and a cargo throughput of 1.881 million tons, both setting new records and reflecting the stable and positive economic development in Shenzhen. The airport opened 17 new domestic routes and 12 international routes, with international passenger traffic increasing by 108.7% year-on-year. Additionally, Shenzhen Airport expanded its cargo business and cross-border e-commerce services, enhancing logistics support and reinforcing its leading position in the domestic cargo market while upgrading its infrastructure.

Guangzhou, China

🔹Beijing to Guangzhou Fast Logistics Demonstration Train Begins Service

On January 6, 2025, around 11:00 AM, the X8501 rapid multimodal transport train departed from the Beijing Railway Logistics Center in Langfang, heading towards Fengtai West Station. At 3:50 PM that day, the train set off again from Fengtai West Station, with an expected arrival at Guangzhou Changping Station in just over 30 hours. This marks the official launch of the fast logistics demonstration train from Beijing to Guangzhou, representing a key logistics route established by the Beijing Railway Bureau between the Beijing-Tianjin-Hebei region and the Guangdong-Hong Kong-Macao Greater Bay Area.

Shanghai, China

🔹New Direct Air Route to Enhance Morocco-China Relations and Boost Tourism

A new direct air route between Shanghai-Pudong and Mohammed V International Airport in Casablanca will soon commence, with Shanghai Airlines operating flights three times a week. This initiative, approved by Morocco's Minister of Transport and Logistics, aims to enhance air traffic between Morocco and China, strengthen bilateral relations, and expand opportunities for business cooperation. The inaugural flights are set to begin on January 19, coinciding with Morocco's booming tourism sector and its efforts to attract Chinese visitors.

Tianjin, China

🔹Completion of Tianjin Port Container Yard Project Enhances Cargo Hub Efficiency and Non-Ferrous Metal Trade

On January 10, the container yard project located south of the Huisheng Terminal at Tianjin Port was successfully completed. The project received 65.8 million yuan in funding from the national comprehensive cargo hub compensation program, which alleviated the financial pressure on enterprises and facilitated the rapid implementation of the project.Covering an area of approximately 275,000 square meters and with a total investment of about 560 million yuan, the project is significant for enhancing the comprehensive transportation cargo hub system in Tianjin, promoting the integration of port, industry, and city development, and improving the efficiency of sea-rail intermodal transport. It is expected to increase the annual cargo turnover of non-ferrous metals by around 4.7 million tons, significantly enhance the throughput capacity of the terminal, and optimize the regional layout of non-ferrous metal trading at Tianjin Port, strengthening the advantages of railway transport and helping to establish a distribution center for non-ferrous minerals radiating to the "Three Northeastern Provinces."

Qingdao, China

🔹Qingdao Kicks Off 2025 China-Europe Freight Train Operations, Boosting International Trade and Logistics

On January 1, 2025, a China-Europe freight train carrying auto parts and machinery departed from the multi-modal transport center in Qingdao, marking the start of the new year’s operations. Modern logistics play a crucial role in supporting national economic development, and the China-Europe trains are vital for international trade and regional growth. In 2024, Qingdao saw a 17.8% increase in train operations, totaling 1,017 trains, contributing to the Belt and Road Initiative and enhancing domestic and international trade.Shandong province has become the fastest to join the "10,000-train club," with Qingdao accounting for a third of the province’s operations. The province plans to enhance its international logistics network by establishing multiple logistics centers and expanding routes to 23 countries and 54 cities. It aims to innovate logistics services by integrating various sectors, such as e-commerce and cold chain logistics, while supporting over 7,000 foreign trade enterprises and addressing financing challenges for small and medium-sized businesses.

Vietnam

🔹Ho Chi Minh City's E-Commerce and Logistics Surge Drives Economic Growth in 2024

In 2024, Ho Chi Minh City's e-commerce and logistics sectors experienced significant growth, driving the city's overall economic prosperity. E-commerce platforms, supported by logistics, electronic payments, and digital marketing, positioned Ho Chi Minh City as a leader in Vietnam's e-commerce landscape, contributing to a 17.85% growth in transportation and warehousing industries. The city's economy is projected to grow by 7.17%, with logistics accounting for 25.4% of this growth, and overall revenues from related services reaching approximately $18.43 billion, a 34.5% increase from the previous year. The rise of platforms like Shopee, Lazada, and Tiki, along with advanced technological infrastructure, has further facilitated this expansion.

South Korea

🔹Air Incheon signs deal to acquire Asiana Airlines’ cargo division

Air Incheon Co. is set to become South Korea's second-largest air cargo operator after acquiring Asiana Airlines' cargo division for 470 billion won ($322.5 million). This acquisition, a key requirement for the merger approval between Korean Air and Asiana, will expand Air Incheon's fleet from 4 to 15 cargo aircraft and increase its total air cargo transport volume significantly. However, challenges arise with employee unrest among the 800 Asiana staff transitioning to Air Incheon, although the airline has assured them that salaries and benefits will remain unchanged.

🔹South Korea launches $680m green fuel infrastructure fund

South Korea is launching a green marine fuel infrastructure fund, co-established by the Ministry of Oceans and Fisheries and the Korea Ocean Business Corporation (KOBC), to invest 1 trillion won ($680 million) by 2030 in environmentally friendly fuel facilities and bunkering vessels. The fund will allocate 600 billion won for LNG, methanol, and ammonia port storage facilities, and 400 billion won for four bunkering vessels, aiming to meet the growing demand for green fuels from South Korea-flagged vessels and ensure reliable supplies for foreign ships. Key projects include enhancing liquid cargo storage at Hyundai Oil Terminal and constructing the Yeosu Myodo LNG hub terminal, with the Ulsan port designated as a hub for green marine fuel supply.

America

🔹U.S. Importers and Chinese Exporters Accelerate Shipments Amid Tariff Concerns

To avoid the cost increases that may arise from tariffs imposed by Trump after he takes office in January, many U.S. importers and Chinese export companies are accelerating the shipment of high-value goods to the United States, with some port operators also considering shifting their supply chains overseas. As shipping costs rise, with air freight increasing by about 70% per kilogram and sea freight prices rising by about 20%, companies like Cathay Pacific and Lijing Technology are considering establishing factories in the U.S. or Southeast Asia to reduce logistics costs and mitigate the potential impact of high tariffs.

Bangladesh

🔹Bangladesh Faces Cargo Transportation Crisis Amid Railroad Capacity Issues and Export Declines

Bangladesh is facing a looming cargo transportation crisis due to an imbalance in railroad capacity, which could worsen during Ramadan and Eid al-Fitr when rail movements may be halted to prioritize passenger services. With a backlog of cargo at Chattogram Port and insufficient rail resources, the situation could lead to significant delays in imports, impacting the logistics sector amid ongoing political unrest. Additionally, Bangladesh's garment exports have declined, with competitors like India and Vietnam benefiting from shifts in sourcing preferences from American companies.

Myanmar

🔹Myanmar's Consul General Highlights Potential for China-Myanmar Cross-Border E-Commerce Growth

Myanmar's consul general in Nanning, Khaing Su Linn, highlighted the significant potential for China-Myanmar cross-border e-commerce cooperation, emphasizing the growing role of the digital economy in international trade. With increasing internet penetration and a rise in technology enthusiasts, Myanmar is well-positioned for e-commerce development. The Guangxi region serves as a crucial gateway for ASEAN countries to access the Chinese market, facilitating trade and investment through various initiatives and events aimed at enhancing cross-border e-commerce collaboration. Linn expressed optimism that this cooperation will lead to a sustainable future for Myanmar's e-commerce industry, creating new business opportunities.

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