Visit 4: Hactl - Hong Kong Air Cargo Terminals Limited

Company Background

Hong Kong Air Cargo Terminals Limited (Hactl), started operating since 1976, is the only air cargo terminal operator at Hong Kong International Airport. It is a world-renowned company offering multi-modal and transshipment services with world-class facilities, superior storage systems and innovative technology.

It is located at Super Terminal 1 at Hong Kong International Airport with multi-level air cargo terminal. It possesses 3,500 Container Storage System (CSS) positions and 10,000 Box Storage System (BSS) positions for different types of cargo handling. Its facilities are capable to handle bulk cargo, valuable goods such as luxury cars, temperature-controlled and perishable products such as frozen raw fish and vegetables, as well as livestock. Hactl handles up to 3.5 million tonnes of air cargo per year.

In terms of innovative technology, Hactl uses COSAC-Plus system to operate its cargo tracking, share information among employees and facilitate e-freight. The system is shared with all airlines, freight forwards and related government departments.

Moreover, Hactl has its own logistics service provider Hacis to offer more value-added services to Hactl’s customers.

Airline customers of Hactl

Hactl serves more than 100 airline companies. Note that each airline company can only choose one company to receive the cargo services and most of them will choose Hactl.

  

Overview model of Hactl

Handover of documents and truck (G/F & 1/F)

Documents related to import and export between Hactl and all airlines are handled on G/F. On the 1/F, trucks park here and perform cargo hand-over. When the truck arrived, there is a registered agent mechanism to collect taxes in the open bound office. And then Infra-red detectors are used to check the cargo’s height and width. After the piece check, cargo will then be put into the yellow box.Each yellow cart box will have its own bar-code stickers. Each staff will has their own handheld device so that they can easily find out which yellow cart box is belong to which shipment. Moreover, with those bar-code, all the real time information about the cargo can be sent to the related stakeholders at the same time so as to increase the transparency.

Cargo in smaller size will be handled as box cargo and will be transferred to Box Storage System (BSS). Also, dimensional check will be performed. Cargo will be put into a yellow cart box and will be moved to 3/F for break down. Big size container cargo will be moved to Container Storage System (CSS). The staff mentioned that more than 60% of cargo received do not need to be broken down or build up because the customers will do this by themselves.

Before the cargo leave the terminal, the security system will double check whether the cargo has passed through custom clearing and pay all the taxes.

The above photo is the Container Storage System (CSS), located on both left side and right side of the Hactl building. There are 3 lanes and two layers in the CSS so as to handle big size cargo, such as cars.

While BSS is located in the middle of the Hactl building which handles smaller size cargo.

This is the view from G/F. There are cargo trucks moving to planes for cargo loading.

Build up and Break down operations (3/F & 4/F)

On the 3/F, the bulk automated systems - BSS will help to break down the small size cargo for further processing or random checking by the Hong Kong Customs and Excise Department officers. The two bulk systems will arrange the movement for the cargo automatically. Workers will put the containers onto the work station. The work station is operated by computer. It can be easily leveling up and down and calculate the weight for each containers. Hactl will charge the airline customers by volume and weight of the cargo. Weight can also tell the workers which containers should be put onto the car first and which should be put on the top.There is air conditioning in this floor in order to provide the workers with better working environment and in case some cargo need temperature control.

Besides, we observed that some air cargo containers’ shape are not in square, but are in 5-sides shape. It is used for lower deck storage in an airplane so as to utilize every single space in the aircraft and each cargo/ pallet is owned by different airlines.

Moreover, temperature control is crucial for temperature sensitive cargo, especially those storing frozen goods and food.

Empty cargo containers storage(2/F & 6/F)

There are two floors for the storage of the empty cargo containers. In the 2/F, there are two cold room so as to store some special empty cargo containers.

Q&A

2. What measures do HACTL take to ensure workplace safety?

Hactl will provide training for the workers from time to time in order to ensure them to have adequate workplace safety knowledge. Apart from classroom training, Hactl will also hold "Workplace Safety Competition". In the competition, Hactl will ask some questions about workplace safety, all the workers will be divided into different groups to answer those questions. The fastest group can get prizes.

7. What are Hactl’s biggest competitive advantages over Cathay Pacific Cargo?

Since Cathay Pacific Cargo is newly established, some important front-line operations still need to be outsourced to the third party. Hactl has more than 40 years experience and 2500 in-house staff. All the experienced staff could provide more flexible and reliable services that Cathay Pacific Cargo.

9. How does COSAC-Plus system help to increase the tracking efficiency?

It is a platform for all airlines and freight forwards to access and share all real-time information of all operations. If there is flight delay needed, Hactl can prepare cargo boxes in advance to achieve better efficiency between different parties.

Learning Reflection

During the whole visit, the most impressive thing for our group is how Hactl uses the technology to help to improve the efficiency of their air cargo operations. There are two automatic system- BSS and CSS. BSS locates in the central of the building, which is mainly used for some small cargo and CSS locates at the two sides of the building, which is used for large cargo. All the break down, build up process and the cargo movement is done by the computer. Apart from these two systems, there is a weight scale inserted under the work stations as some cargo may charge by its volume. All the station can be leveling up and down, provides convenience for the staff to handle the air cargo. Hong Kong being the transport hub for the Asia countries, it handles a lot of cargo every day. Technology is essential to maintain its competitiveness in the air cargo industry around the world.