EXTRANS GLOBAL - Weekly Logistics Operation Update - Week 16

📌Weekly Logistics Highlights:

 Hong Kong, China

🔹Hong Kong International Airport recrowned world’s busiest cargo airport for 2023

According to provisional figures released by the Airports Council International, Hong Kong International Airport (HKIA) has maintained its position as the world's busiest cargo airport in 2023 in terms of total cargo volume. This marks the 13th time since 2010 that HKIA has achieved this distinction. The airport's efficient operations and world-class freight transport services have contributed to its leading position in a challenging industry. Jack So, the chair of the Airport Authority Hong Kong, emphasized the importance of aviation freight transport as a driving force for Hong Kong's logistics sector and overall economic development. The Airport Authority will continue to collaborate with the air transport industry to enhance Hong Kong's competitiveness as a global freight transport hub. To accommodate long-term needs, HKIA is expanding into a Three-Runway System, which will significantly increase its passenger and cargo capacity. This expansion is expected to be completed by 2024, ensuring that HKIA can handle 120 million passengers and 10 million tonnes of cargo annually.

🔹HK Express announces new direct flights to Sanya

HK Express Airways has announced that it will begin its direct flights to Sanya Phoenix International Airport (SYX) in Hainan, China, on 10 May.“With a mere two-hour flight, sun-seekers and beach lovers can now easily sojourn to one of Asia's top tropical destinations, allowing more time to savour Sanya’s picturesque seaside or explore the shore at a leisurely pace,” the airline said.

 Shenzhen, China

🔹FedEx expands Shenzhen airport facility

FedEx Express has completed an upgrade to its Shenzhen Baoan International Airport gateway facility in China. The renovation and expansion of the import warehouse aim to enhance import operations and provide efficient customs clearance for customers in the Southern China region. The upgraded warehouse now features an advanced intelligent management system, e-warehouse, and an additional sorting belt. The expansion has increased the footprint of the gateway by 48% to over 4,500 sq m, doubling the sorting capacity of packages and documents, and increasing freight handling capacity by 50%. The enhanced facility will optimize customs clearance processes in Shenzhen and southern China, creating a smarter supply chain and providing an efficient experience for customers. The Shenzhen facility is one of FedEx's four major international gateways in China, responsible for handling import and export packages for multiple cities in the south and southwestern regions. FedEx has been operating in China for 40 years and currently operates 10 international flights per week in Shenzhen, connecting Asian and American markets. Last year, the company upgraded its export service for high-value shipments in south China, reducing transit times to the Americas. FedEx plans to continue improving its facilities in Shenzhen, investing in new technologies, and further reducing customs clearance times.

 Guangzhou, China

🔹135th Canton Fair Showcases Advanced Construction Machinery, Boosting Global Engineering Innovation

GUANGZHOU, China, April 18, 2024 /PRNewswire/ -- At Phase 1 of the 135^th China Import and Export Fair ("Canton Fair" or "the Fair"), enthusiasm among global buyers continues to soar as they explore cutting-edge construction machinery displayed by about 200 exhibitors in this section. This event marks a significant leap in engineering and construction innovation worldwide, with Chinese construction equipment's "soft" technology and "hard" manufacturing seeing rapid development and innovation.

 Shanghai, China

🔹Xinyang-Wuhan-Shanghai-Thailand 'rail-river-sea' intermodal logistics channel launched

Around 3 pm on April 7, a train (No. 44047) fully loaded with quartz sand left Xinyang Station of China Railway Wuhan Bureau Group, marking the official launch of the Xinyang-Wuhan-Shanghai-Thailand "rail-river-sea" intermodal transportation. The cargo will be sent to Laem Chabang Port of Thailand finally via Wuhan and Shanghai successively.Xinyang is a pivotal transportation and logistics hub in Central Plains, where two major railway lines (Beijing-Guangzhou and Nanjing-Xi’an) meet. The rich commodities in its surrounding areas show strong foreign trade demand.

 Tianjin, China

🔹'Jing-Jin-Ji' turning into a mega economic region

Beijing-Tianjin-Hebei (Jing-Jin-Ji) region in China over the past 10 years. The plan aims to achieve better integration, balanced regional development, and economic growth while addressing income disparities and reducing pollution levels.The total economic output of the Jing-Jin-Ji cluster in 2023 exceeded 10.4 trillion yuan, indicating the successful development and integration of the three regions.More than 3,000 manufacturing enterprises have been relocated from Beijing to Hebei and Tianjin, and numerous markets and logistics centers have been shifted or upgraded. Additionally, over 9,200 hectares of land have been cleared and afforested after the demolition of illegal buildings in Beijing.The development plan acknowledges the challenges faced by each region, such as overpopulation and pollution in Beijing, the need to capitalize on Tianjin's port city status, and translating resources into economic gains in Hebei. Coordinated development helps overcome these challenges.The Xiong'an New Area, a planned city southwest of Beijing, is a concrete embodiment of the vision for the region. It has attracted significant investment and major companies have established a presence there.Improved transportation links have made travel between the three regions easier, and collaboration has reduced air pollution and improved air quality. Integration of public services, such as the medical insurance plan, has streamlined healthcare processes.Coordinated development has enhanced the global competitiveness of the region, making it attractive to multinational corporations and foreign investors.

 Qingdao, China

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 Vietnam

🔹Vietnam, France enhance transport cooperation

Paris (VNA) – Minister of Transport Nguyen Van Thang led a Vietnamese delegation on a working visit to France from April 8 to 10 during which the two sides agreed to promote all areas of  transport cooperation.The delegation had meetings with French Minister with responsibility for transport Patrice Vergriete, agencies of the Ministry for Ecological Transition and Territorial Cohesion, and representatives of Airbus Group.At the events, Thang affirmed that transport cooperation, including in air, railway, maritime, and road transport, is one of the priorities both countries have been promoting for many years.

 South Korea

🔹Korea shipping industry group opens tender for 400 billion won global logistics fund

Korea Ocean Business Corporation (KOBC) has announced a tender for a 400 billion won ($288.69 million) global logistics supply chain investment fund. The fund, which will have a five-year investment period and a 15-year maturity, aims to invest in port and logistics companies and projects in the US, Europe, and Southeast Asia. KOBC plans to hire two asset managers for the fund.To qualify for the tender, asset management firms must have experience managing global private equity funds for institutional investors and have at least 1 trillion won of total assets in their real asset portfolio. They also need to be registered in South Korea.The application process is open until May 9, and the winning bidders will be selected by the end of May. KOBC, based in Busan, provides financing, credit guarantees, and infrastructure support to local shipping companies, including container leasing.The establishment of this investment fund demonstrates KOBC's commitment to supporting the shipping industry and promoting global logistics supply chain development.

 America

🔹Alibaba (BABA) Aids U.S. Businesses With Logistics Marketplace

Alibaba’s logistics arm Cainiao announced the launch of a "consolidated shipping" service in the United States, bolstering its overseas logistics offerings.The cross-border service packages multiple shopping orders from various Chinese e-commerce platforms and delivers them to U.S. customers via air and sea transport routes, reducing delivery times to as little as five days.The company’s launch of Cainiao Express, a new express delivery service, remains noteworthy. It aims to offer doorstep, half-day, same-day and next-day deliveries to select Alibaba-owned businesses.Alibaba Group also revealed its plans to invest $1.1 billion in South Korea over three years in its quest to build a logistics center and expand businesses across the country. The company further announced that it would invest $200 million this year for the development of the logistics center and $100 million for small and mid-sized firms.All the above-mentioned endeavors are expected to aid the company in capitalizing on the growth opportunities present in the global logistics market. Per an Allied Market Research report, the global logistics market is expected to reach $16.79 trillion by 2032, indicating a CAGR of 5.6% between 2023 and 2032.

 Bangladesh

🔹Bangladesh eyes additional World Bank support for post-LDC dreams

Bangladesh will ask the World Bank (WB) to extend its technical cooperation in export diversification, boosting competitiveness, expanding investment, and improving trade logistics for a smooth and sustainable graduation from the status of the least developed country, scheduled for 2026."World Bank may also assist the country's initiatives aimed at enhancing human capital and institutional capacity development to facilitate a seamless transition," says a brief prepared for Finance Minister AH Mahmood Ali for the spring meetings of the World Bank and International Monetary Fund in Washington on 15-20 April. The finance ministry believes Bangladesh's external debt lies far below the threshold level and the government has 'adequate repayment capability'. 

 Myanmar

🔹Thai industries fear trade slump due to Myanmar conflict

The Federation of Thai Industry FTI) voiced concerns over the escalating armed conflict in Myanmar, predicting a further slump in border trade and a surge in illegal workers from Myanmar into Thailand. The Thailand-Myanmar border trade, valued annually at 100 billion baht (US$2.7 billion), tends to suffer whenever conflict escalates, according to Kriengkrai Thiennukul, chairman of the FTI.“There are fears that the trade value will decrease, impacting both sellers and buyers as Myanmar typically imports a diverse range of consumer goods from Thailand.”Kriengkrai also pointed out that the conflict could disrupt transport and logistics, potentially causing shortages of goods among Myanmar nationals.

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