HKIA’s growth to elevate Hong Kong's air freight sector

The imminent launch of the Hong Kong International Airport (HKIA)’s Three Runway System set at 28 November 2024 is a milestone for the city. The four-year development project, anchored by the addition of the third operational runway since 2022, significantly enhances HKIA’s infrastructure. Concurrently, the second runway has been temporarily closed for reconfiguration, preparing for the full implementation of the Three Runway System.

Forecasts herald a substantial surge in both passenger and cargo traffic coursing through HKIA following the full operation of the three-runway configuration. Hong Kong Airport Authority’s projections depict a scenario of exponential growth, with HKIA potentially handling an annual throughput of 120 million passengers and 10 million tonnes of freight by 2035. This represents a two-fold increase over the 40 million passengers and about 1.3 times increase of the 4.3 million tonnes in 2023. These projections are further supported by the airport’s proven resilience as a crucial air cargo hub in the midst of the challenging pandemic lockdowns.

Figure 1: Total volume of air freight 2010-2023 and the forecast in 2035

Source: Civil Aviation Department, Transport and Logistics Bureau

Hong Kong has remained the top cargo airport in the world for over ten years, and the airport’s enhancement is set to further cement the city’s position as an international aviation hub. The Three Runway System project and the burgeoning prominence of air freight have drawn numerous operators to this emerging logistics hub, who have started to establish their presence in the area to seize the anticipated surge of opportunities ahead. Here are the completions or confirmed developments in the area from 2023 to 2028:

Figure 2: Confirmed supply in the Chek Lap Kok Airport area

Source: Building Digest, market news, JLL

Expanding beyond its traditional confines in Hong Kong, HKIA has ventured into Dongguan to establish the Hong Kong Dongguan Logistics Park, a groundbreaking initiative set to complete its initial construction phase by the end of 2025. Collaborating closely with the Dongguan Port Group, this endeavour is poised to pioneer a novel sea-air intermodal transshipment system linking Dongguan to HKIA. This initiative strategically aligns with the increasing demand for air freight services in the rapidly growing Greater Bay Area, where cargo throughput is expected to reach 18 million tonnes by 2030, growing at a CAGR of 5.9% according to the International Air Transport Association.

The forthcoming facility in Dongguan is slated to interconnect seamlessly with HKIA’s Airside Intermodal Air Cargo Handling Facility through dedicated cargo vessels. Currently, shipping operations are planned between the Hong Kong Dongguan Logistics Park and HKIA. Once operational, the Logistics Park has the potential to broaden this sea-based network to include the Kwai Chung Container Port with HKIA serving as an interchange stop. This proposed expansion not only pledges to diversify the tenant mix of the Hong Kong Dongguan Logistics Park but also strives to enhance the use of ocean freight services among stakeholders in the Greater Bay Area, spurring a ripple effect on the overall local logistics sector.

Figure 3: Sea route for the sea-air transshipment from HKIA Dongguan Logistics Park to HKIA

Source: Hong Kong Customs