Shanghai Pudong International Airport Cargo Terminal (PACTL) started its operations at Shanghai Pudong International Airport in 1999 with four customers and 2,000 tonnes of cargo per month. Today, PACTL has grown into a leading cargo terminal operator employing some 1,700 employees with 38 customers and handles an average 90,000 tonnes per month.
While burgeoning fuel prices are hurting airlines and airports globally, PACTL is growing faster than the market in its key segment. Business from Beijing Olympic Games has also helped the company in no small way.
“We handled a total of 93,640 tonnes in July, up slightly by 2 per cent yearon- year,” a PACTL spokesman said. “Cumulatively, we handled 620,271 tonnes between January and July, up 5 per cent versus the same period a year ago.”
Cargo handled by domestic airlines at PACTL, the second-largest independent cargo terminal operator in China, in July was 1,113 tonnes, while those handled by international airlines was 92,527 tonnes, up 55 per cent and 103 per cent year-onyear, respectively.
Last year, PACTL handled 910,077 tonnes of cargo, up 14 per cent yearon- year, while Pudong Airport recorded handling a total of 1.88 million tonnes of cargo, up 33 per cent versus a year earlier, according to the Shanghai Airport Operations Centre.
PACTL’s shareholders are Shanghai Airport Group with 51 per cent, Lufthansa Cargo 29 per cent and JHJ Logistics Management 20 per cent.
PACTL terminals
PACTL currently operates two air cargo terminals at Pudong, and it will open a third terminal – part of the West Extension project – this year to boost its cargo handling capacity further.
Its first cargo terminal for the first runway is located directly at the airside on Su Hang Road at Pudong International Airport. The terminal has a one million tonnes capacity and a warehouse of about 50,000 square metres.
Its second terminal, which is located at the second runway on Dongyuanhang Road at Pudong International Airport, has a 300,000 tonnes capacity, supported by an 18,000 square metre warehouse.
The terminal at the West Extension scheduled for operation this year will have a cargo capacity of about 2.45 million tonnes per year. The project will also provide 33-40 freighter positions. West Extension, which is at the airport’s third runway that opened earlier this year, includes a 16.8 square-kilometre logistics park and a 2.55 square kilometre cargo area.
“Cargo handling space has long been an issue at Shanghai Pudong International Airport but the new terminal will help Shanghai Airport Authority achieve its goal of an annual throughput of 4.1 million tonnes by 2010 and 6.5 million by 2015,” an airport authority spokesman said.
Facilities & technology
PACTL’s bulk cargo operation system comprises six stacker systems with 123 auxiliary devices in two operation areas. Due to high-tech control and operating devices, the system runs automatically for bulk cargo storage and retrieval.
The cargo build-up or break-down area is where the ULD cargo is accepted, weighed and transferred automatically; while loose cargo is built up and ULDs are broken down.
To speed up export cargo processing, PACTL has introduced dedicated warehouse space within its facilities to forwarding agents for palletising.
With regards aircraft security, PACTL currently owns 16 X-ray machines for checking all cargo before it’s loaded onto the aircraft, with the machines operated by trained professionals from an independent security company. Freight with the maximum dimension of 1.5m height and 1.65m width can be x-rayed at a speed of 0.2 metres per second.
In keeping with technological advances, PACTL uses Hermes Cargo System to provide data integrity and consistency, as no additional manual input is necessary as the system uses scanning. All billing, messaging and reporting use the same data base and therefore eliminates the chances of making mistakes.
The system also provides improved steering and operating as it is customised to PACTL’s operational workflow, offers real-time overview of inventory / location of cargo, improved data and process security and has a pre-alert warning system for better process control.
Competition
At Pudong airport , another major cargo terminal operator – Shanghai Eastern Logistic Co., Ltd – handles cargo at their facility which is situated directly next to PACTL. Shanghai Eastern Logistic has also opened a logistic centre, located about 3 kilometres away from Pudong airport, on a piece of land covering some 650,000 square metres.
A third air cargo terminal operator – Shanghai Airlines – is also active at Pudong. Since opening of their second terminal at runway two, they were able to increase their capacity significantly.
Shanghai Airport Group, which operates the country’s second-busiest airport, forecasts a double digit increase per year of tonnage for the next five years. “For international cargo (the airport is expected to have) an average increase of 12-15 per cent per year for the next five years, while express cargo is expected to grow even stronger,” the group said.
Most carriers are also expected to increase their flights to Pudong airport, as well as include it into their network, helping develop the airport into a major hub in Asia.
The biggest challenge is how to cope with this growth (capacity, facilities, equipment, etc.) while at the same time maintaining or even upgrading services, quality and safety and security measures.
