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Presentation by Warren Bishop

The Importance of Innovation in Building Asia’s Premier Air Cargo Logistics Hub. Presentation by Warren Bishop. Director, Corporate Development Hong Kong Air Cargo Terminals Limited. Agenda – Hactl’s Key Qualities. Efficiency. Reliability. Security. IT Backbone. Value-added Services.

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Presentation by Warren Bishop

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  1. The Importance of Innovation in Building Asia’s Premier Air Cargo Logistics Hub Presentation by Warren Bishop Director, Corporate Development Hong Kong Air Cargo Terminals Limited

  2. Agenda – Hactl’s Key Qualities Efficiency Reliability Security IT Backbone Value-added Services

  3. Creating Efficiency for Customers

  4. Creating Efficiency for Customers Comprehensive cargo handling services: • Customer-focused account management system • One-stop-shop services • Physical cargo handling • Document handling • Ramp handling

  5. Highly Reliable & Secure Cargo Handling Services

  6. Reliable Cargo Handling Mishandling Rate for Feb 2008 : I.T. System and Industrial Automation System Availability Rate for Feb 2008 :

  7. One of the world’s lowest terminal pilferage rate The only cargo terminal in the world in compliance with the TAPA - Cargo Terminal Best Security Practices standards World-Class Security and Safety • Terminal is secured by 24hrs x 365days x 250-highly trained security guards and round-the-clock surveillance by Hactl Security Control Office • Cargo handled under monitoring by 900 CCTV cameras with 30 days full time recording

  8. IATA Safety Audit for Ground Operations (ISAGO) Setting the benchmark for future ISAGO audits world-wide New Initiative – ISAGO • To establish the ISAGO audit parameters as well as the implementation guidelines for ground operators and sub-contractors • Being chosen by IATA as its ISAGO trial audit partner

  9. Advanced IT Backbone

  10. IT Integration • E-Freight • Hong Kong as a launch station • Align with IATA to provide a paper free environment for air cargo shipment throughout the entire cargo supply chain Integration with Cargo Portals, e.g. CCN • Add value for customers and our business Business Partner Integration Platform • Enhance connectivity between Hactl customers and the airfreight community

  11. IT Investment • Ongoing investment in IT services to support our reliable and efficient air cargo operations: • Infra-structural renewal • - e.g. Improve Local Disaster Recovery system, upgrade Computer Room facilities • Software and IT systems improvement • - More than 10 projects scheduled in upcoming years, e.g. to enhance Global Security System and Logistics Control System Increased reliability of the systems Lower maintenance cost Increased agility to respond to market needs

  12. Value-added Intermodal Services

  13. Operated by Hactl’s wholly-owned subsidiary Hacis Supply chain management solutions between HKG and Mainland China Multimodal : air-road / air-sea Strengthens HKG’s position as the regional air cargo hub and gateway to China Value-added Intermodal Services

  14. Economic Ties between Hong Kong & the PRD • PRD accounted for over 70% of HKG’s air cargo throughput • HKG accounted for 70% of cumulative FDIs in the PRD PRD manufacturing base Hong Kong SAR • Over 60,000 HKG companies have operations in Guangdong Province • 90% of HKG manufacturers have production facilities in the PRD

  15. Hacis’ Inland Cargo Depot Network in the PRD region Guangzhou Baiyun Airport ICDs in Fujian Province Xiamen Gaoqi Airport Fuzhou Changle Airport Huangpu (Guangzhou FTZ) Humen, Dongguan Lianhuashan (on operational trial) Shenzhen Baoan Airport Nansha (being studied) Enhancing Connectivity with the PRD

  16. Enhancing Connectivity with the PRD • Develops a diversity of hassle – free logistics support services to suit different needs locally and regionally - Local(Hong Kong): Airport Direct Service (Import & Export) - Regional (Hong Kong & Southern China): SuperLink China Direct (Northbound & Southbound) • Major benefits for customers: - Saves time - Enhances efficiency - Facilitates effective cargo management

  17. Creating innovation for Hong Kong Air Cargo Logistics Hub Improving our terminal performance Offering one-stop shop handling services Handling cargo with efficiency, reliability and security Investing in information technology Driving efficiencies in the supply chain to/from the Pearl River Delta by developing Hacis Working with customers as partners and offering tailored services Summary

  18. Thank You

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