Development of Airfreight Hubs in the Greater Pearl River Delta
A Competitive Analysis of Guangzhou Baiyun International Airport and Hong Kong Chek Lap Kok International Airport
©2006
Magisterarbeit
138 Seiten
Zusammenfassung
Inhaltsangabe:Abstract:
Everything has beauty, but not everyone sees it goes a famous saying by Confucius. My wish in writing this paper is to convince readers of the peculiar beauty and importance of the highly dynamic aviation landscape of the southern Chinese Pearl River Delta.
Airfreight is an essential and highly sophisticated part of an economys logistics infrastructure. A functioning infrastructure is vital for the development of an economy, in particular for its international trade. As trade is a key component in Chinas economic success formula, demand for an efficient infrastructure is high. Air transportation has become one of the most effective tools to explore and serve world markets. In todays highly competitive business world, just-in-time delivery and good customer service are absolutely crucial. The overall trend towards fast reliable delivery and the transformation of Chinas economy along with the value chain of production, have boosted demand for air transportation. Due to these developments, the air cargo market, which is still at low levels particularly in domestic transportation, is one of the fastest growing markets in China.
The regional focus of this study is on the economic powerhouse of China, the Pearl River Delta (PRD) located in the southern province of Guangdong. Everyone who knows the highly industrialised landscape of the PRD would probably agree, that the regions nickname factory of the world is more than appropriate. The PRD has the highest per capita output in China and generates about one third of national exports. The Greater Pearl River Delta (GPRD) consists of the PRD and the Special Administrative Zones Hong Kong and Macao. In many respects, it is one of the most interesting economic entities of the world. Economy and infrastructure are integrated on a very high level. The GPRD features many extremes: its strong economic power, its rapid growth that has been the highest in China for many years, its population density and last but not least, its aviation landscape. Within radial distance of about 100 km, five international airports are at service, creating the highest airport density in the world. Three of these airports are among Chinas top five airports.
The clear leader among them is Hong Kong International Airport (HKIA), which has established itself as a major hub in Asia and has been the airport with the highest international air cargo throughput of the world for many years. Its dominant […]
Everything has beauty, but not everyone sees it goes a famous saying by Confucius. My wish in writing this paper is to convince readers of the peculiar beauty and importance of the highly dynamic aviation landscape of the southern Chinese Pearl River Delta.
Airfreight is an essential and highly sophisticated part of an economys logistics infrastructure. A functioning infrastructure is vital for the development of an economy, in particular for its international trade. As trade is a key component in Chinas economic success formula, demand for an efficient infrastructure is high. Air transportation has become one of the most effective tools to explore and serve world markets. In todays highly competitive business world, just-in-time delivery and good customer service are absolutely crucial. The overall trend towards fast reliable delivery and the transformation of Chinas economy along with the value chain of production, have boosted demand for air transportation. Due to these developments, the air cargo market, which is still at low levels particularly in domestic transportation, is one of the fastest growing markets in China.
The regional focus of this study is on the economic powerhouse of China, the Pearl River Delta (PRD) located in the southern province of Guangdong. Everyone who knows the highly industrialised landscape of the PRD would probably agree, that the regions nickname factory of the world is more than appropriate. The PRD has the highest per capita output in China and generates about one third of national exports. The Greater Pearl River Delta (GPRD) consists of the PRD and the Special Administrative Zones Hong Kong and Macao. In many respects, it is one of the most interesting economic entities of the world. Economy and infrastructure are integrated on a very high level. The GPRD features many extremes: its strong economic power, its rapid growth that has been the highest in China for many years, its population density and last but not least, its aviation landscape. Within radial distance of about 100 km, five international airports are at service, creating the highest airport density in the world. Three of these airports are among Chinas top five airports.
The clear leader among them is Hong Kong International Airport (HKIA), which has established itself as a major hub in Asia and has been the airport with the highest international air cargo throughput of the world for many years. Its dominant […]
Leseprobe
Inhaltsverzeichnis
Jana Schebera
Development of Airfreight Hubs in the Greater Pearl River Delta
A Competitive Analysis of Guangzhou Baiyun International Airport and Hong Kong Chek
Lap Kok International Airport
ISBN-10: 3-8324-9657-2
ISBN-13: 978-3-8324-9657-9
Druck Diplomica® GmbH, Hamburg, 2006
Zugl. Freie Universität Berlin, Berlin, Deutschland, Magisterarbeit, 2006
Dieses Werk ist urheberrechtlich geschützt. Die dadurch begründeten Rechte,
insbesondere die der Übersetzung, des Nachdrucks, des Vortrags, der Entnahme von
Abbildungen und Tabellen, der Funksendung, der Mikroverfilmung oder der
Vervielfältigung auf anderen Wegen und der Speicherung in Datenverarbeitungsanlagen,
bleiben, auch bei nur auszugsweiser Verwertung, vorbehalten. Eine Vervielfältigung
dieses Werkes oder von Teilen dieses Werkes ist auch im Einzelfall nur in den Grenzen
der gesetzlichen Bestimmungen des Urheberrechtsgesetzes der Bundesrepublik
Deutschland in der jeweils geltenden Fassung zulässig. Sie ist grundsätzlich
vergütungspflichtig. Zuwiderhandlungen unterliegen den Strafbestimmungen des
Urheberrechtes.
Die Wiedergabe von Gebrauchsnamen, Handelsnamen, Warenbezeichnungen usw. in
diesem Werk berechtigt auch ohne besondere Kennzeichnung nicht zu der Annahme,
dass solche Namen im Sinne der Warenzeichen- und Markenschutz-Gesetzgebung als frei
zu betrachten wären und daher von jedermann benutzt werden dürften.
Die Informationen in diesem Werk wurden mit Sorgfalt erarbeitet. Dennoch können
Fehler nicht vollständig ausgeschlossen werden, und die Diplomarbeiten Agentur, die
Autoren oder Übersetzer übernehmen keine juristische Verantwortung oder irgendeine
Haftung für evtl. verbliebene fehlerhafte Angaben und deren Folgen.
© Diplomica GmbH
http://www.diplom.de, Hamburg 2006
Printed in Germany
2
TABLE OF CONTENTS
TABLE OF ABBREVIATIONS...6
I.
EXECUTIVE SUMMARY ...8
II.
ACKNOWLEDGEMENT...10
1.
INTRODUCTION TO CHINA'S AVIATION INDUSTRY ...11
1.1.
Administration
...11
1.2.
Airlines
...12
1.2.1.
The first airlines ... 12
1.2.2.
Market Consolidation and the emergence of the "Big Three" ... 13
1.2.3.
Recent Developments ... 13
1.3.
Airports and supporting Infrastructure
...13
1.3.1.
Change in ownership structure... 13
1.3.2.
Chinese airports income structure... 14
1.3.3.
Foreign participation ... 15
1.4.
Air traffic rights policy
...15
1.4.1.
Air traffic rights in China ... 15
1.4.2.
Air traffic rights in Hong Kong... 16
2.
THE AIR CARGO MARKET IN CHINA ...17
2.1.
General characteristics of air cargo
...17
2.2.
Types of air cargo
...17
2.3.
Air cargo growth trends
...18
2.4.
Air cargo in China
...19
2.4.1.
Emergence of an industry ... 19
2.4.2.
Air cargo market structure ... 22
2.4.3.
Major cargo airlines ... 24
2.4.4.
Major cargo airports... 26
3.
THE GREATER PEARL RIVER DELTA...29
3.1.
Basic facts
...29
3.2.
Administration
...31
3.3.
Economy
...32
3.3.1.
Economic structure... 32
3.3.2.
Rise of the GPRD's economy... 34
3.3.3.
Regional breakdown... 36
3.3.3.1.
Guangdong
...36
3.3.3.2.
PRD Economic Zone
...37
3.3.3.2.1.
Eastern PRD
...39
3.3.3.2.2.
Central PRD
...41
3
3.3.3.2.3.
Eastern PRD
...42
3.3.3.3.
Hong Kong
...45
3.3.3.3.1.
Hong Kong's trade pattern
...46
3.3.3.4.
Macao
...49
3.3.4.
Regional comparison - GPRD and YRD ... 49
3.3.5.
Economic outlook ... 50
3.4.
Logistics structure
...51
3.4.1.
Regional breakdown... 52
3.4.1.1.
Guangzhou
...53
3.4.1.2.
Shenzhen
...53
3.4.1.3.
Hong Kong
...54
4.
AIR CARGO IN THE GPRD ...56
4.1.
Regional distribution
...57
4.2.
Major commodities
...57
4.3.
Major air cargo markets
...58
4.4.
Air cargo in Hong Kong
...58
4.4.1.
Structure of air cargo flows in Hong Kong... 61
4.5.
Airports in the GPRD
...62
5.
GUANGZHOU BAIYUN INTERNATIONAL AIRPORT ...68
5.1.
Location
...69
5.2.
Administration
...69
5.3.
Financing
...70
5.4.
Facilities
...71
5.5.
Customs
...73
5.6.
Principal Carrier
...73
5.7.
Route network
...74
5.8.
Air cargo market structure
...75
5.9.
Other
...76
6.
HONG KONG CHEK LAP KOK INTERNATIONAL AIRPORT...77
6.1.
Location
...78
6.2.
Administration
...79
6.3.
Financing
...79
6.4.
Facilities
...80
6.4.1.
Cargo handling facilities 1
st
tier ... 80
6.4.1.1.
SuperTerminal 1 HACTL
...80
6.4.1.2.
Asian Airfreight Terminal AAT
...81
6.4.1.3.
Express Cargo Terminal ECT
...81
6.4.2.
Cargo handling facilities 2
nd
tier... 81
4
6.4.2.1.
Airport Freight Forwarding Center
...81
6.4.2.2.
Tradeport Logistics Centre
...81
6.4.2.3.
Marine Cargo Terminal
...82
6.5.
Intermodal infrastructure
...82
6.6.
Customs
...83
6.7.
Principal carrier
...83
6.8.
Route network
...85
6.9.
Air cargo market structure
...85
6.10.
Other
...87
7.
THE AIR CARGO INDUSTRY DYNAMICS ...89
7.1.
Demand side
...89
7.1.1.
Air cargo volume potential ... 89
7.1.2.
The air cargo community ... 89
7.1.2.1.
Cargo agents/ freight forwarders
...90
7.1.2.2.
Airlines
...90
7.1.2.3.
Government/ Regulatory body
...91
7.1.2.4.
Service Providers
...91
7.2.
Supply side
...91
8.
GBIA AND HKIA ANALYSIS OF COMPETITIVE FACTORS...94
8.1.
Air cargo potential of the GPRD
...94
8.2.
Catchment area of GBIA and HKIA
...94
8.3.
Costs
...95
8.4.
Geographical location
...97
8.5.
Capacity
...98
8.6.
Connectivity, Frequency and Network
...98
8.7.
Customs
...99
8.8.
Infrastructure
...101
8.9.
Intermodal connectivity
...101
8.10.
Company's aviation policy
...102
8.11.
Cargo Agent's use of GPRD airports
...102
8.12.
Influential factors on the development of GPRD airport landscape
...103
8.12.1.
Political Factors ... 103
8.12.2.
China's WTO entry ... 104
8.12.3.
Closer Economic Partnership Arrangement CEPA ... 105
8.12.4.
Improvement of soft factors... 105
8.12.5.
The Taiwan issue ... 106
8.13.
Competitive Landscape
...106
5
8.13.1.
Competing airports for origin/destination traffic... 107
8.13.1.1.
Shenzhen (SZX)
...107
8.13.1.2.
Macao (MFM)
...108
8.13.1.3.
Zhuhai
...108
8.13.2.
PRD A5 Forum ... 108
8.13.3.
Competing airports for transshipment traffic ... 109
8.13.3.1.
Shanghai Pudong (PVG)
...110
8.13.3.2.
Beijing (PKG)
...111
8.13.3.3.
Taipei (TPE)
...111
8.13.3.4.
Singapore (SIN)
...112
8.13.3.5.
Seoul Incheon (ICN)
...112
8.13.3.6.
Bangkok (BKK)
...113
9.
CONCLUSION - FUTURE ROLE OF GBIA AND HKIA IN THE GPRD AIR CARGO
MARKET...113
APPENDIX I: EXPLANATORY NOTES...117
APPENDIX II: FIELD STUDY QUESTIONNAIRE CHINESE ...118
APPENDIX III: FIELD STUDY QUESTIONNAIRE ENGLISH ...122
APPENDIX IV: FIELD STUDY - AIRPORT COMPETITIVE RATING OUTCOME...126
REFERENCES I FIELD STUDY: INTERVIEW PARTNERS ...127
Domestic logistics companies:
...127
International logistics corporations:
...127
Other interview partners:
...127
REFERENCES II LITERATURE AND PUBLICATIONS ...129
REFERENCES III ONLINE RESSOURCES...132
6
Table of Abbreviations
AAHK
Airport Authority Hong Kong
AAT
Asian Airfreight Terminal
AFFC
Airport Freight Forwarding Center
Bn
Billion
CAAC
Chinese Civil Aviation Administration
CCTV
Closed Circuit Television
CEPA
Closer Economic Partnership Agreement
CNAC
China National Aviation Company Ltd
ECT
Express Cargo Terminal
EDI -
Electronic Data Interchange
FDI
Foreign Direct Investment
FIE
Foreign Invested Enterprise
FTK
Freight tonne kilometres
FTZ
Free Trade Zone
GBIA
Guangzhou Baiyun International Airport
GPRD
Greater Pearl River Delta
HACTL
Hong Kong Airport Cargo Terminal Limited
HKD
Hong Kong Dollar
HKIA
Hong Kong International Airport
JV
Joint Venture
M
Million
MOFTEC
Ministry of Trade and Economic Cooperation
MCT
Marine Cargo Teminal
O/D TRAFFIC
Origin/destination traffic
PRC
People's Republic of China
PRD
Pearl River Delta
RFID
Radio Frequency Identification Device
7
SAR
Special Administrative Region
SARS
Severe Acute Respiratory Syndrome
SDPC
State Development and Planning Commission
SOE
State Owned Enterprise
TDC
Trade Development Council
USD
US Dollar
WTO
World Trade Organisation
YRD
Yangzi River Delta
8
I.
Executive Summary
"Everything has beauty, but not everyone sees it" goes a famous saying by Confucius
1
. My
wish in writing this paper is to convince readers of the peculiar beauty and importance of the
highly dynamic aviation landscape of the southern Chinese Pearl River Delta.
Airfreight is an essential and highly sophisticated part of an economy's logistics infrastructure.
A functioning infrastructure is vital for the development of an economy, in particular for its
international trade. As trade is a key component in China's economic success formula, demand
for an efficient infrastructure is high. Air transportation has become one of the most effective
tools to explore and serve world markets. In today's highly competitive business world, just-in-
time delivery and good customer service are absolutely crucial. The overall trend towards fast
reliable delivery and the transformation of China's economy along with the value chain of
production, have boosted demand for air transportation. Due to these developments, the air
cargo market, which is still at low levels particularly in domestic transportation, is one of the
fastest growing markets in China.
The regional focus of this study is on the economic powerhouse of China, the Pearl River Delta
(PRD) located in the southern province of Guangdong. Everyone who knows the highly
industrialised landscape of the PRD would probably agree, that the region's nickname "factory
of the world" is more than appropriate. The PRD has the highest per capita output in China and
generates about one third of national exports. The Greater Pearl River Delta (GPRD) consists
of the PRD and the Special Administrative Zones Hong Kong and Macao. In many respects, it
is one of the most interesting economic entities of the world. Economy and infrastructure are
integrated on a very high level. The GPRD features many extremes: its strong economic power,
its rapid growth that has been the highest in China for many years, its population density and
last but not least, its aviation landscape. Within radial distance of about 100 km, five
international airports are at service, creating the highest airport density in the world. Three of
these airports are among China's top five airports.
The clear leader among them is Hong Kong International Airport (HKIA), which has established
itself as a major hub in Asia and has been the airport with the highest international air cargo
throughput of the world for many years. Its dominant counterpart for domestic traffic is located
some 100 km north in the very heart of the PRD, Guangzhou Baiyun International Airport
(GBIA).
The strong air cargo business of HKIA, that is largely fed by PRD freight has been watched
closely by Mainland administrations. Liberalised air traffic policy in recent years has rapidly
expanded China's own international air cargo traffic. To support this expansive strategy, a
completely new airport was built to replace the old GBIA, featuring the biggest and most
1
Quoteworld http://www.quoteworld.org/quotes/3107
9
modern air cargo facilities in China. This new airport might take substantial business away from
HKIA in the future.
The focus of this paper is to examine the competitive position of the two airports and to forecast
their future role in the southern Chinese and Asian air cargo market. GBIA's potential ability to
catch up with HKIA as major air cargo hub in Southern China brings important implications for
the region. While macroeconomic factors will also be taken into account, the emphasis of this
paper is on the microeconomic approach of the two airports' competitive perspectives.
Little literature has been written about the topic. This analysis is founded on available resources
such as logistics literature and journals as well as studies and publications by HKIA, which has
a very pro-active information policy. A large share of data used was gathered through a field
study conducted in late spring 2005 in Guangzhou. Eleven branch and airfreight managers of
both local and international cargo agents were extensively interviewed about the PRD air cargo
market and the regional airport landscape. Much additional information was gathered by
minutes of meeting with airline representatives in Guangzhou and Shenzhen.
The paper is structured in nine sections: While the first part gives a short introduction to the
aviation industry in China, section two takes a closer look at the Chinese airfreight market. Part
three examines the macroeconomic structure of the GPRD and provides a detailed economic
and logistics analysis of the region, while part four analyses the local air cargo market. The two
sections give a comprehensive description of the two airports in the focus of this paper. Section
seven of the paper highlights the air cargo industry dynamics and the following part provides an
in-depth comparative analysis of the two airports based on the fundamental data and additional
information provided by the field study. This section also takes a closer look at external factors
affecting the overall GPRD air cargo market. Moreover, an introduction to other competing
airports in the region is given. Finally, part nine evaluates the two airport's future development
prospects, based on the outcome of this study.
10
II.
Acknowledgement
First of all, I deeply thank Eric Guo of Lufthansa Cargo Guangzhou, who has been incredible
supportive. Without Eric's help it would have been much harder to conduct the field study.
Moreover, his excellent knowledge of the Guangzhou airfreight market was a unique source of
information.
Phoebe Chan of Lufthansa Cargo has equally been very supportive my warmest thanks to
her, too.
I also thank Wu Qi of ICCS in Shenzhen for his great help and information about the local air
cargo market.
Further thanks to Echo Wang and Katie Gou in Guangzhou, which were extremely helpful in my
efforts for the field study.
In Germany, Dr. Michael Holzschneider of Dornier Consulting provided me with his expert
knowledge of airport development and airfreight business dynamics my deepest thanks to
him, too.
I am also much obliged to my professor and mentor Professor Erling v. Mende, who has been
very supportive from the very beginning.
Finally, I thank all interviewed cargo agents for devoting their time and taking part in the study
their knowledge and comments have been invaluable for my research.
Jana Schebera
01.01.2006, Berlin
11
1.
Introduction to China's aviation industry
In the early years of the People's Republic, China's aviation industry was merely viewed as a
matter of national defence with most resources being channelled into military areas. Air
transport was considered less important than other more immediately necessary modes of
transport such as road, rail and waterways and therefore received only limited attention of the
government
2
.
With the increasing drive to promote economic modernisation starting with the reform and
opening period from the late 1970s, civil air transport gradually assumed a more important role.
Observing that air transport represents an infrastructural key component of highly developed
economies, the Central Government realised that substantial air transport facilities were
required for the Chinese economy's sustainable development. Since the late 1970s, the
government has put a much greater emphasis on civil air transport and adopted numerous
strategies and policies aimed at bringing about the development of the industry.
3
The
government is well aware of the strong challenge to meet China's explosive demand for air
services with new and expanded airport projects and aviation infrastructure.
1.1.
Administration
The most important organisation in civil aviation in China is the Civil Aviation Administration of
China
4
(CAAC). In the past, CAAC's role in the industry had a dual structure: it was the peak
administrative body in charge of air transport and at the same time the only operating entity
running the air service system at the grassroot operational level. CAAC was the only regulatory
authority, airline and airport operator all in one
5
.
Initially the CAAC was under the administrative authority of the Central Military Commission at
first, but in 1985 it was shifted over to the State Council and assumed a quasi ministerial rank,
becoming a purely civilian organisation. Management of air transport was carried out through a
vertically integrated bureaucratic system with its central level in Beijing. Below the central level
were six regional bureaus throughout the country supervising a number of municipal
departments and some smaller operational sites
6
.
During the mid-1980s a fundamental change occurred to the CAAC itself. Before the launch of
the reform and opening policy only high ranking government officials used air transportation,
but since the early 1980s the aviation market began to open up for paying passengers. These
2
Dougan, p.152
3
Dougan, p.153
4
The Essential China Book: Airports Airlines & Tourism 2001, p.11
5
Dougan, p.152
6
Dougan, p.153
12
developments and the growing number of foreign visitors, most of them arriving by plane
resulted in annual growth rates of more than 50% for both passengers and air freight. This
placed tremendous pressure on the CAAC, which on top of that had been running at an ever
increasing loss. To deal with the situation, the government decided to break up CAAC's
operations into a governmental and a commercial sphere. The central level in Beijing remained
in charge of the hands-on operational control of the industry whereas the regional units carrying
out the day-to-day air transport activities were given independent commercial status separate
from the CAAC. The CAAC's six regional bureaus were transformed into financial entities as
SOEs. These regional bureaus became the roots of the major airlines operating in China today.
The central level CAAC in effect became the "Ministry of Civil Air Transport", a status that it is
maintaining to the present day
7
.
Apart from the CAAC, a number of other state organisations is involved in administration of air
transport, such as MOFTEC and State Development and Planning Commission (SDCP), which
plays a key role in decisions regarding new airport construction projects, airline regulations,
airfare pricing and route allocation
8
.
SDCP, MOFCOM and CAAC all have recognised the need for a major restructuring of the
aviation sector and for foreign capital and know-how, if China wants to tap the chance of
meeting the burgeoning demand for air transportation. From 1994 foreign investment in civilian
air transport was officially welcomed in large parts of the industry in the form of joint ventures
with Chinese partners, share purchase and cross-equity holdings with domestic airlines
9
. In a
move to catch up with the soaring demand for both air cargo services and passenger transport
in recent years, Beijing started further opening up its aviation infrastructure sector in 2002 to
foreign and domestic money in an effort to propel an industry overhaul and therefore requiring
money and international expertise. To promote air cargo the CAAC has also simplified the
process of approval on freighter importation and lease and relaxed the limitations for the setup
of new cargo airlines
10
.
1.2.
Airlines
1.2.1. The first airlines
In addition to the airlines formed out of the six regional bureaus of the CAAC, the Central
Government and the CAAC invited local governments to independently invest in new air
transport enterprises from the late 1980s. Provincial and Municipal Governments as well as
private business interests became heavily involved in establishing new airline companies
11
.
China Postal Airlines, the first dedicated mail and cargo airline in China was established as a
7
Dougan, p.154
8
Dougan, p.156
9
The Essential China Book: Airports Airlines & Tourism 2001, p.15
10
Morrison Foerster Legal Update 06/04
11
Dougan, p.159-160
13
joint venture between the Tianjin Municipal Government and the former Ministry of Posts and
Communications. The sector flourished and the number of airlines was continuously increasing.
1.2.2. Market Consolidation and the emergence of the "Big Three"
In the late 1990s revenues began to plummet partly due to the Asian Financial Crisis but also to
the ongoing undercutting of ticket prices aimed at gaining market share caused by the intense
competition. This led to a continuing loss of profitability that is still prevailing among Chinese
airlines
12
. CAAC estimated that the sector suffered a combined loss of up to two billion RMB in
the first half of 2001
13
. As a reaction to these developments CAAC's resumed stronger price
control and encouraged airlines to merge with one another, putting various small airlines out of
business. The move led to sustained market consolidation and resulted in the emergence of the
"Big Three" airline groups: China Southern, Air China and China Eastern that have been
dominating the market since
14
.
1.2.3. Recent Developments
CAAC showed its commitment to further liberalise China's aviation industry and encourages
private and foreign investment in Chinese airlines. At present, about 48 domestically registered
airlines are operating in China. Four Chinese airlines hold foreign capital through domestic and
international stock markets. Okay Airways, the first 100% privately owned airline started
business in March 2005. Three other private airlines and two joint-venture all cargo-carriers are
all set to take off soon after receiving clearance from CAAC
15
.
1.3.
Airports and supporting Infrastructure
In China airports had been run by the CAAC since 1949
16
. At first mainly for military use they
gradually shifted towards commercial aviation. Since the 1990s the government is pushing for a
rapid development of China's aviation industry with airports being a vital part. In recent years,
enormous efforts have been made in the airport sector. From 1996 to 2000 17 new airports
were built and 33 were upgraded. In 2004, China had a total of 143 commercial airports
17
.
1.3.1. Change in ownership structure
In most economies airports are traditionally government business largely due to high fixed
asset costs and long payback periods and their importance for the regional economy. Airport
privatisation is a rather modern concept.
12
The Essential China Book: Airports Airlines & Tourism 2001, p.20
13
Characterization of Air Cargo Trends in Hong Kong, p.30
14
Dougan, p.162
15
Wuliushidai, 05/05
16
Dougan, p.165
17
Payload Asia 11/05
14
Industry reforms in the 1980s in China aimed at shifting a greater part of airport business to
municipalities. Because of the crucial role airports play in town planning and regional
development, municipally funded and managed airports are directly linked to a more aggressive
and progressive approach of airport management
18
.
In 2002 the State Council released a plan that gradually provides the complete transfer of 129
civil airports that have been directly managed by the CAAC to local governments. That puts
China's airports in direct competition with each other and allowed them to plan and finance their
own projects. The only exceptions from that transfer are Beijing Capital International Airport,
GBIA and civil airports in Tibet
19
. Local authorities realised that the aviation sector is a key
component in their strive for growth, so a China-wide building boom at airports could be
observed
20
.
Municipalities were encouraged to seek airport funding from capital markets, strategic investors
and partnerships. Some of Chinas airports have been transformed into limited liability
companies and obtained legal person status
21
. Some airports such as Xiamen, Shenzhen and
Shanghai's Hongqiao Airport have made A-share offerings on the Shanghai Stock Exchange,
GBIA is listed on the Shenzhen stock exchange
22
.
The change in airport ownership structure has placed significant financial pressure on Chinese
airports to develop new business models to enhance profitability.
1.3.2. Chinese airports income structure
In contrast to many airports in developed countries, Chinese airports generate the major share
of income from aeronautical fees. Airport aviation fees are set by the Chinese authorities. Fees
for international flights are roughly the same as those charged by airports in developed
countries, but those for domestic flights are way below what foreign airports charge their
domestic airlines
23
. The common Airport Construction fee which Chinese airports levy on
domestic and foreign passengers does in contrast to the other service fees applied not
contribute to the airports revenues but is directly submitted to the CAAC
24
.
The current fee structure used by airports was established in 1992 and is liked to the massive
problems the domestic aviation industry has been facing in the early 1990s. The State Council
has since rejected appeals made by airports to be allowed to raise the domestic prices to
function on a more commercial basis
25
. Moreover, China's airports have a very low proportion
18
Dougan, p.187
19
Morrison Foerster Legal Update 04/04
20
The Essential China Book: Airports Airlines & Tourism 2001, p.37
21
faren", Dougan, p.83
22
Wuliushidai 7/05
23
Grove, Hu
24
Dougan, p.174
25
Dougan, p.175
15
of non-aeronautical income such as retail, car rental and hotel business. which often constitutes
more than 50% of the income of foreign airports
26
.
Therefore, at present more than 70% of China's domestic airports, in particular the smaller
ones in central and western China do not operate on a economically sustainable basis
27
.
1.3.3. Foreign participation
CAAC and the Central Government have welcomed foreign investment in the airport sector
from the mid 1990s and raised the maximum foreign ownership share to 49% of registered
capital. CAAC has announced, that further liberalisation for foreign investors will take place in
the future
28
.
Due to the fact that most Chinese airports do not operate profitable, only few foreign strategic
investors have started to engage in the Chinese airport sector. HKIA has recently bought a
35% stake worth 240 mn USD in Hangzhou airport, aiming to expand its cargo facilities while
Singapore's Changi Airport has signed an agreement to buy 45% of Nanjing Airport
29
.
Chengdu Shuangliu Airport, the major hub in western China that aims to raise funding for its
expansion plans for a second runway and a new terminal will be the first Chinese airport to plan
an overseas stock listing to attract capital
30
.
1.4.
Air traffic rights policy
1.4.1. Air traffic rights in China
The politics of air movements are governed by International Air Services Agreements which
countries negotiate to exchange air freedom rights with each other. Thus, air traffic rights are
absolutely essential for the establishment of an international route network
31
.
In the past, China had taken a rather conservative approach to international capacity supply,
which has resulted in limited air traffic rights between China and the rest of the world.
Moreover, the route and flight frequency allocation within China used to be biased towards
Beijing and Shanghai
32
.
International air traffic rights are indispensable for the development of an route network and
crucial for the promotion of air traffic. In accordance with the government's objective to heavily
promote the aviation sector, China's policy on international air traffic rights have become much
26
The Essential China Book: Airports Airlines & Tourism 2001, p.38
27
Wuliushidai 05/05, note that these are official sources, the real share of loss-making airports is probably larger than that
28
Wuliushidai 05/05
29
Payload Asia 11/05
30
The Standard, 16.8.2005
31
The industry's response has been to form global airline alliances, where airlines get into another country's market beyond
gateway airports by sharing codes, seats, routes and airport facilities.
32
The Essential China Book: Airports Airlines & Tourism 2001, p.22
16
more liberal since 2000
33
. This has lead to a series of bilateral agreements in recent years
34
.
China has signed Open Skies agreements with Australia, New Zealand and Thailand that
provide no limitations on 3
rd
, 4
th
and 5
th
traffic rights
35
. Bilateral Agreements for cargo and
combination services were also made with the UK and Singapore, particularly supporting the air
cargo sector. More liberal cargo rights were also re-negotiated in agreements with Germany,
France, Japan, Korea, Malaysia, India the UAE and Canada
36
. Hong Kong, too, has recently
been granted extensive additional capacities connecting the SAR and 12 Mainland cities,
including Hangzhou, Changsha and Nanjing
37
Of particularly high importance is the Sino-US bilateral agreement signed in June 2004. The
agreement has the potential to alter freight markets and flows in the region dramatically
38
. The
agreement permits a nearly five-fold increase in weekly frequencies between the two countries
over the next six years, approaching the current frequency between the US and Japan
39
. By
2010, airlines of both country's will be able to serve any point in either country, moreover
unlimited code sharing between US and Chinese airlines will be permitted. This will have
implications for several hubs in the region that have built up significant transit operations for
US-China passengers and freight, due to the capacity constraints in the past
40
.
Hubs are a key part of the US-China agreement, that allows carriers to establish cargo hubs in
the other country by 2007 if they meet certain minimum-service requirements.
1.4.2. Air traffic rights in Hong Kong
Hong Kong has been rather liberal in negotiating air traffic rights which resulted in the
establishment of HKIA's excellent route network.
However, the change of sovereignty of Hong Kong had a great impact on the Hong Kong
aviation sector in terms of legal and regulatory status. The first change relates to the changing
freedom identity of Hong Kong related carriages. When Hong Kong was still a British colony,
the London Hong Kong route for instance was considered as domestic route. After 1 July
1997 the British government lost control over this route. All international air services to, from or
through Hong Kong which do not operate to, from or through Mainland China are now governed
by the Government of the Hong Kong SAR under specific authorisations from the Central
Government in Beijing
41
Similarly, the freedom identity of Hong Kong Mainland China carriages was affected by the
change of sovereignty. These routes were before recognised as international traffic. Starting
33
The Essential China Book: Airports Airlines & Tourism 2001, p.22
34
Presentation: Garfincle & Wang Tear Down the Barriers on Air Cargo Transport: A PRC Perspective"
35
See Explanatory Notes
36
Presentation: Garfincle & Wang Tear Down the Barriers on Air Cargo Transport: A PRC Perspective"
37
Presentation: Sustaining HKIA Cargo Hub, Competitive Advantage A Hactl Perspective
38
Air Transport World 12/04
39
Air Transport World 08/04
40
Payload Asia, 05/05
41
Basic Law, 1991, Sec. 1.4
17
from 1 July 1997, however, they have become cabotage routes. As a consequence, they have
been reserved for airlines incorporated and having their principal place of business in the Hong
Kong SAR and other airlines of the PRC
42
.
In practice, routes to and from Hong Kong from international cities hubbed through Hong Kong
are controlled by Hong Kong's own aviation authorities, but routes starting or ending in
Mainland cities, hubbed through Hong Kong, are controlled by the CAAC in Beijing
43
.
2.
The air cargo market in China
2.1.
General characteristics of air cargo
Air cargo volume throughout the world has been strongly linked to trade growth. In effect, it has
grown slightly faster than international trade volume, which in turn has grown at between 1.5
and 2 times the rate of world GDP
44
.
Air cargo flows consist of general cargo and air express, priority shipments that are transported
with maximum speed.
There are two principal reasons for shippers to select the air mode as opposed to surface
transportation such as road, sea and rail: First, the speed of air transportation of goods,
especially over long distances, which is becoming increasingly important due to supply chain
pressures that require just-in-time delivery and short life span products such as high-technology
products and fashion goods. Moreover, its highly reliable security of delivery time is a crucial
factor for modern supply chain management. Equally. for time sensitive products such as
newspapers and perishables subject to spoilage airfreight presents the only feasible choice of
transportation on long distances.
Second, air transportation's high security standard regarding losing or damaging shipments
makes it the best option for valuables.
For these reasons, air cargo usually has a high value-to-size ratio and is often time sensitive.
2.2.
Types of air cargo
Air cargo can be divided into different types of cargo flows: domestic traffic and international
traffic. The speed advantage of air cargo against other modes of transportation is increasing
with the distance of transportation, thus international air cargo is economically much more
important than domestic cargo. In a large country like China, however, potential of domestic air
cargo is also huge.
42
Joint Declaration, 1984, Annex I, Sec. IX; Basic Law, 1991, Art. 131
43
Characterization of Air Cargo Trends in Hong Kong, 2001 p.36
44
Characterization of Air Cargo Trends in Hong Kong, 2001 p.49
18
Moreover, air cargo flows can either be origin/destination or transshipment traffic. O/d cargo is
generated at the airports catchment area and flown out to other destinations and vice versa,
whereas transshipment cargo is arriving from international destinations and continuing to other
international destinations.
2.3.
Air cargo growth trends
Currently, there are two major events driving the strong growth of the air cargo industry. The
first is the ongoing global production fragmentation, which has lead to increasing trade flows
growing much faster than global GDP. The second is the emergence of information technology,
which has lead to the rise in relative importance of air transportation.
The global trend of production fragmentation has been steadily increasing over the last two
decades and changed the face of the world economy to a great extent. The internationalisation
of production, i.e. outsourcing various blocks to countries that possess a comparative
advantage in that productive activity has become a dominant feature of globalisation. This is
partly a result of the continuous decline in tariffs and other trade barriers. On the other hand
global markets have become highly transparent due to improved communication technologies.
Outsourcing and production fragmentation have been a major source of strongly growing trade
flows, that result in demand for international transportation services.
Moreover, globally integrated production activities, the growing importance of e-business and
increasing pressures for cost reduction along with highly sophisticated and easily available
information technologies have brought major changes to the whole production and distribution
process. Major trends in this regard has been Just-in-time production and distribution systems
as well as virtual warehousing keeping goods in transit as a substitute for holding goods in
storage and the emergence of strategically located "fulfillment centers" that enable speedy
and economical delivery of goods. All of these trends strive to reduce inventories to a mere
minimum and require flexible transportation of goods. Product life-cycles have also been
constantly shortening, in particular in industries such as computers, pharmaceuticals and
designer clothes.
This calls for faster, more flexible and more reliable transportation solutions and has led to a
global shift towards air cargo services that better meet the requirements of modern logistics
systems.
Due to these developments, air cargo and within this sector air express has been the fastest-
growth area in the global cargo sector for the last 25 years
45
. The trend towards increasing
trade flows and the relative shift in logistics towards air transportation is still going on. Thus,
45
AirCargo Asia-Pacific, 12/04
19
prospects for the global air cargo market continue to look good. Boeing recently forecasted the
global freighter fleet to double by 2025 to 3.530 aircraft. The strongest future growth is
associated with Asia, the most dynamic and populous region on earth
46
.
2.4.
Air cargo in China
2.4.1. Emergence of an industry
Only limited statistics are available on the early years of China's aviation industry.
Diagram 2.I. shows the average annual growth rate of China's domestic airlines' air cargo traffic
from 1950 to 2000 compared to the average growth rate of passenger traffic
47
.
Air Cargo and Passenger Growth 1950 - 2000
-10
0
10
20
30
40
50
1950-
1955
1955-
1960
1960-
1965
1965-
1970
1970-
1975
1975-
1980
1980-
1985
1985-
1990
1990-
1995
1995-
2000
A
v
e
ra
g
e
P
e
rc
e
n
t
G
ro
w
th
Passenger Traffic
Freight traffic
The table shows that growth in both cargo and passenger traffic was brisk in the 1950s when
the economy was resuming from the civil war. In the early 1960s it stalled and even showed
negative growth rates likely due to the aftermath of the failed Great Leap Forward initiative and
the Cultural Revolution. Growth resumed in the 1970 for passenger traffic but only at a lag for
cargo traffic. Both grew at similar rates from 1980 to 1995 but then started to slow down and
diverge again, with the slowdown of air cargo growth much smaller than that of passenger
growth. Airfreight is growing on a somewhat more stable pace than passenger traffic. In the last
decade air cargo growth has overtaken growth in passenger traffic.
As China's enormous foreign trade growth implies, the air cargo market has grown rapidly in
recent years. Since the beginning of the Reform and Opening policy that has boosted the
economy from the late 1970s, growth has been substantial and stable.
46
Boeing World Cargo Market Outlook
20
Diagram 2.II. presents the development of air cargo in China in terms of freight tonne-
kilometers (FTK) from 1984 2002
48
:
Airfreight Volume 1985 - 2002
0
200
400
600
800
1000
1200
1400
1600
1800
19
85
19
86
19
87
19
88
19
89
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
Year
F
T
K
M
/1
0
0
0
Growth in FTK has achieved an average rate of 18%. Air cargo growth turned negative for a
year in 1989 probably as a result of the Tiananmen incident and the international condemnation
of that, which resulted in a decrease in China's international trade. Another dip in growth
occurred in 1997 with the beginning of the Asian Financial Crisis, which hurt major Asian
economies, affecting China's economy and trade.
Although the Chinese economy currently accounts for 12% of world GDP and for 18% of global
trade, its share in the global air cargo industry is still small at 4.5%
49
.
Total air cargo transported to and from Chinese airports increased almost fivefold from 0.45 m
tonnes in 1991 to 2.2m tonnes in 2003
50
. This is due to the global trends mentioned above, but
also to structural changes in China's aviation and air cargo industry. With China evolving from a
centrally planned economy to one with greater emphasise on free market enterprises, major
changes are ahead for both its aviation and air cargo industry.
The development of air cargo business is a major stage in the CAAC's efforts to build China
into an international aviation power. The CAAC wants Chinese companies to tap a bigger piece
of the soaring airfreight market and to gain more efficiency in the sector. Its recent policy has
47
Analyzing China's air cargo flows and data, George W.L. Hui, Yer Van Hui, Anming Zhang
48
Zhongguo Hangye Fazhan Baogao Jiaotong Yunshuye 2003, p.98; it has to be noted that the carried freight calculated from
the available data comprises freight, passenger freight and letters, thus is does not correspond to IATA standards
49
Wuliuguanli 06/04
50
Wuliuguanli 06/04
21
been to encourage domestic airlines to run joint ventures or solely funded ventures as they
expand in the cargo market
51
. Furthermore, restrictions on imports of cargo aircraft have been
relaxed, i.e. approval procedures have been simplified. Rules to approve cargo air routes and
flights have been reformed and local governments are encouraged to establish airfreight
hubs
52
. The liberalising of the sector by the Chinese authorities has also been evident from
international agreements such as the China-US air services agreement which is putting much
emphasis on dedicated cargo flights.
In keeping with its pledge to open up major sectors of its service industry following accession to
WTO, China has also lifted restrictions on international companies in its freight forwarding
industry. Due to these developments, a large wave of foreign logistics enterprises is about to
enter the Chinese market
53
, boosting the air cargo sector.
Another key aspect is the fact, that China is developing from a low income country to a higher
income level country. This is driving the relative importance of air cargo in China's
transportation industries due to the increase in production of high-value goods and to soaring
domestic demand which leads to rising imports and higher valued import commodities .
The airfreight industry in China has not yet much become a single industry of itself with the bulk
of air cargo still being carried on belly holds of passenger flights. Only very few airlines
specialise in the transport of air cargo
54
. This has started to change in recent years, with "The
Big Three's" announcement to substantially increase the share of air cargo in their sources of
revenue. The first Sino-foreign all-cargo airlines will start business in early 2006
55
. Furthermore,
various airports, now competing due to their newly gained independence are determined to
position themselves as regional air cargo hubs
Due to the global trends enhancing air cargo, the restructuring and liberalisation of the Chinese
air cargo industry and the increase in wealth of its citizens, the air cargo market in China has
one of the highest market potentials in the world. This is further propellled by increasing
demand for air services in China associated with the mega events Olympia 2008, the 2010
World Exhibition and the Asian Games in 2012 in Beijing, Shanghai and Guangzhou
respectively.
CAAC estimates that, by 2010 cargo volume handled by Mainland airports will rise to more than
10 m tonnes and surge to 30 m tonnes in 2020
56
. A study by the international express
forwarder UPS forecasts, that supply in air cargo services would have to increase by 400%
51
Renminribao, 8.6.2004
52
Renminribao, 8.6.2004
53
Wuliu guanli 12/04
54
Dougan, p.192
55
Jade Cargo Ltd., South China Morning Post 23.4.05
56
Wuliuguanli 03/05
22
within the next ten years to keep up with the soaring demand
57
. According to Boeing, China will
be the most important aviation market in the world after the US
58
by 2020. Airbus forecasts that
the Chinese air cargo and passenger market will account for up to 18% and 8% of the world
market by 2010
59
. The figures suggest that the air cargo market is of much bigger global
importance than the passenger market, mainly due China's large foreign trade flows as third
largest trading nation.
2.4.2. Air cargo market structure
Unlike most other countries, China's domestic air cargo volume by far exceeds international air
cargo volume. This is mainly because of the geographical size of the country and the still
prevailing inefficiency in surface transportation.
Diagram 2.III. demonstrates the share distribution of airport cargo throughputs on domestic and
international routes. Hong Kong and Macao are hereby counted as domestic routes
60
:
Types of air cargo 2003
2924; 73%
1094; 27%
Domestic routes incl. HKG
and MAO (1000 tonnes)
International Routes (1000
tonnes)
Hong Kong's share in domestic routes is presumably large. If it would be counted as
international traffic, the share of international traffic would be much higher. At the moment Hong
Kong still is a major hub for international cargo arriving from and destined for the Mainland.
The domestic airfreight market is growing particularly fast, rising from 200,000 tonnes in 1991
this figure to 1.6 m tonnes in 2003, an annual increase of more than 20%. Domestic cargo
accounted for 69% of the total air cargo volume carried in 1991. By 2003 it had risen to almost
73% of total air cargo
61
.
57
UPS
58
Wuliuguanli 08/04
59
Grove, Hu
60
Market and Infrastructure Analysis of Future Air Cargo Demand in China, Analyzing China's air cargo flows and data
61
Boeing World Air Cargo Forecast 2004/2005
23
China's largest trading partners are the European Union, the US and Japan
62
. This implies that
international cargo traffic flows are mainly eastbound where the greatest net value to China
exists and westbound towards Europe. Another major feature of the Mainland's air cargo traffic
is its predominantly outbound character, which corresponds to China's huge trading surplus.
This is posing severe operational problems to air cargo providers.
Air cargo traffic distribution is linked to regional economic performance and industrial output.
Picture 2.I. presents the regional distribution of air cargo traffic in China (ex Hong Kong)
63
:
Airfreight traffic activities are concentrated on the eastern and southern coastal regions, where
China's prospering manufacturing sector is located, and industrial output and GDP are the
highest. These coastal areas are strongly export oriented, leading to a high demand for air
cargo services.
In the south, the air cargo market is dominated by Hong Kong. The SAR handles a major share
of China's air cargo flows, most of which are generated in its hinterland, the Pearl River Delta.
Other regional economies are starting to build up significant air cargo volumes, too. Notably the
Yangzi River Delta in China's East has rapidly developed its air cargo sector, accounting for
42,6% of air cargo traffic in 2003 (ex Hong Kong).
62
WTO Trade Statistics 2005
63
Presentation: Garfincle & Wang Tear Down the Barriers on Air Cargo Transport: A PRC Perspective"
24
Because of the speed and security advantage of air transport and its high costs relative to
surface transport, goods with a high value to size ratio, valuables and time sensitive goods
such as products subject to spoilage are conducive to air mode.
Table 2.I. presents major commodities carried on Mainland China's international and domestic
air routes
64
:
Major commodities carried on
international routes
Major commodities carried on
domestic routes
Electrical equipment, sound
recorders, television image and parts
Perishables (seafood, fruits, flowers,
etc.)
Pearls, precious and semi-precious
stones
Livestock
Apparel, textile and clothing
accessories
Apparel, textile and clothing
accessories
Nuclear reactor, boiler and parts
Electronics
Optical instruments and parts
Instruments
Organic chemicals
Medical products
Aircraft instruments and parts
Medical products
2.4.3. Major cargo airlines
Airfreight has been much en vogue with airlines all over the world, basically because it is
recognised as a form of insulation from the constantly decreasing profits from passenger traffic
due to low cost airlines and increasing competition. Asian airlines derive up to 48% of their total
revenue from freight
65
. Moreover, business in the airfreight sector in China is potentially more
profitable than in the parallel passenger market because of the fact that CAAC still decides the
prices on the passenger traffic market, whereas this is not the case for air cargo
66
.
All big Chinese airlines have started to increasingly focus on air cargo. The "Big Three" control
a huge portion of the airfreight market and carry about 62% of total domestic and international
freight
67
. On domestic routes they have a combined market share of more than 80%. The
biggest stake accounting for 22.2% of the market is controlled by China Southern (CZ), China's
largest airline in terms of fleet and revenue with its home airport GBIA.
64
Market and Infrastructure Analysis of Future Air Cargo Demand in China; Analyzing China's air cargo flows and data
65
Air Transport World, 12/2004
66
The Essential China Book: Airports Airlines & Tourism 2001, p.15
67
as of 1998, Dougan, p162
25
The second biggest player in the market is Air China (CA), that has a market share of 20.6% in
the air freight sector. As first airline of the "Big Three" CA launched its own cargo division Air
China Cargo as a spin-off in December 2003. CA holds 51% in the venture. Its home base is
Beijing although CA is also using other airports for cargo operations.
China Eastern Group with its home base Shanghai accounts for 18% of the market
68
.
Other cargo carriers are China Postal, China Cargo and Yangtze River Express. China Postal
was established by the China Postal Bureau in 1996 as dedicated carrier for domestic mail and
had been the monopoly express cargo provider for many years. The airline is now facing
increasing competition as global express operators are increasingly penetrating the Chinese
market. CZ purchased 49% of the carrier as a strategic investment
69
.
The first mostly privately owned dedicated air cargo carrier in China, China Cargo Co. Ltd, was
established in 1998 by China Eastern (70%) and Cosco (30%). A possible joint venture of
China Cargo Co. with the Taiwanese China Airlines is still pending (2004 presi).
Yangtze River Express, launched by China Changan and Hainan Airlines in 2002 was the first
private dedicated airfreight carrier providing only domestic service, such as domestic
connection flights for the US integrator UPS.
With Jade Cargo the first Sino-foreign joint venture dedicated cargo carrier will be joining the
market. Jade will operate flights on international routes from its home base Shenzhen from
2006.
Domestic airlines still carry almost 100% of domestic airfreight in China. In contrast to that, their
share in international traffic is substantially lower. In 2002 Chinese airlines carried merely 39%
of China's international air cargo
70
.
This is mainly because of the low competitiveness of Chinese carriers in the international
market. The industry has been struggling in yield and profitability for many years
71
.
As a consequence, Chinese carriers are often unable to exhaust their full route capacities
resulting in the existence of so called ghost or zombie rights
72
.
In terms of passengers the share of domestic carriers in international traffic was slightly higher.
In 2004, 46.5% of departing scheduled seats were provided by domestic carriers, down from
50% in 1998
73
.
There is a strong correlation between airlines performance of cargo business and the hub
development of their "home airport". Being the preferential choice and centre of an airlines
route network, an airports destiny is strongly tied to the performance of its home carrier.
68
The Essential China Book: Airports Airlines & Tourism 2001, p.22
69
Wuliushidai 7/05
70
425,000 and 669,000 tonnes respectively in 2002; Market and Infrastructure Analysis of Future Air Cargo Demand in China"
71
See section 1.2.2.
72
i..e. air traffic rights that have been granted to airlines but stay unused;
26
2.4.4. Major cargo airports
Due to China's strong growth in aviation, demand for airports continues to be strong. In 2005
China had 133 civil airports altogether, a figure that is to rise to 190 in 2010 and 230 by 2020 if
CAAC's current plans come into effect
74
.
Table 2.II. shows the ten busiest cargo airports in China in terms of throughput and growth as
of 2003
75
:
Rank
Airport
Cargo throughput
(tonnes)
Change over previous
year (%)
1
Shanghai Pudong (PVG)
1,189,303
60,0
2
Beijing (PEK)
662,746
-1,2
3
Guangzhou (CAN)
545,000
-8,2
4
Shenzhen (SZX)
353,597
22,8
5
Shanghai Hongqiao (SHA)
208,524
-63
6
Chengdu (CTU)
177,310
-12,2
7
Kunming (KMG)
136,899
N/A
8
Xiamen (XMN)
120,552
N/A
9
Hangzhou (HGH)
91,317
N/A
10
Nanjing (NKG)
80,677
N/A
The three airports of Beijing, Shanghai and Guangzhou handle more than half of China's total
air cargo. All of them are located at the centre of the most important economic and industrial
zones of China.
Beijing serves the Beijing and Tianjin economic development zones. An important driver of
cargo growth at Beijing Capital International Airport has been the soaring high-tech industry in
the region. Beijing International Airport was the leader in air cargo throughput throughout the
1980s as it occupied most of the international airlines and domestic routes. While Beijing has
less cargo then Shanghai now, it is still a clear leader in air passenger transport
76
.
Shanghai serves the Yangzi River Delta economic region. Shanghai began to catch up after
1990 and became the Mainland's most important cargo airport in 1995. The economic strength
and export orientation of its catchment area, the extending along the Yangzi to cities as far as
Wuhan has been the principal driver for Shanghai's air cargo market. Shanghai has been
developing rapidly in the past years with freight volume growing at stunning rates of almost
80% in 2002, 60% in 2003 and 39.4% in 2004. In particular the opening of its Pudong Airport,
73
Air Cargo Transport World 04/2005
74
Zhongguo Hangye Fazhan Baogao Jiaotong Yunshuye 2003, p.101
75
Zhongguo Hangye Fazhan Baogao Jiaotong Yunshuye 2003, , p.101, Presentation: Garfincle & Wang Tear Down the Barriers
on Air Cargo Transport: A PRC Perspective"
27
that has already positioned itself as the 6
th
biggest cargo airport in Asia, has boosted
Shanghai's development into a major hub airport. By now, Shanghai is Mainland China's most
important airport for both international and domestic cargo. PVG and Hongqiao account for a
third of total air cargo in China and for 66% of all international cargo
77
.
The most important airport in Southern China has been Guangzhou Baiyun International Airport
GBIA, China's third busiest air cargo airport. GBIA serves the Pearl River Delta (PRD), the
economic power house of China which is characterised by a strong manufacturing sector in
particular for consumer goods and a strong focus on export. The driving force for GBIA's air
cargo growth has been the strength of its industrial base. GBIA's hub development has been
strongly affected by Hong Kong, which handles most of the international air cargo originating in
the PRD. Limited capacities at the old airport have equally hampered growth. However, air
cargo throughput is expected to rise sharply after the opening of the new airport facilities in
2004. GBIA is now the airport with the largest cargo facilities in China.
The domestic route network of air cargo transport in China may be viewed as a tripod between
Beijing, Shanghai and GBIA airports as major legs. The international network may be viewed
similarly with Hong Kong replacing GBIA as the third leg
78
.
Since the two different airports GBIA and Hong Kong both perform the third leg role, one
domestically and one internationally, a long-run equilibrium has possibly not yet been attained.
The functional specialisation between Hong Kong and GBIA is still evolving. The possible
outcome of this process is the particular focus of this paper..
Table 2.III. shows a comparison of flight frequency and airlines between major Chinese airports
and Hong Kong as of 2003
79
:
Shanghai PVG
Beijing
Guangzhou
Shenzhen Hong Kong
Number of
Airlines
39
44
16
13
75
Destinations
131
136
87
64
143
- International
60
66
20
9
104
- Mainland
71
70
67
55
39
Weekly
5,588
6,134
3,344
2,784
4,233
76
Market and Infrastructure Analysis of Future Air Cargo Demand in China; Analyzing China's air cargo flows and data
77
Zhongguo Hangye Fazhan Baogao Jiaotong Yunshuye 2003, , p.101, Presentation: Garfincle & Wang Tear Down the Barriers
on Air Cargo Transport: A PRC Perspective"
78
Analyzing China's air cargo flows and data
79
Presentation Moving forward with you"
Details
- Seiten
- Erscheinungsform
- Originalausgabe
- Erscheinungsjahr
- 2006
- ISBN (eBook)
- 9783832496579
- ISBN (Paperback)
- 9783838696577
- DOI
- 10.3239/9783832496579
- Dateigröße
- 2.1 MB
- Sprache
- Englisch
- Institution / Hochschule
- Freie Universität Berlin – Geschichts- und Kulturwissenschaften, Sinologie
- Erscheinungsdatum
- 2006 (Juni)
- Note
- 1,0
- Schlagworte
- airport management hkia china cargo market aviation flughafen
- Produktsicherheit
- Diplom.de
