Future of ground handling is safe, secure and sustainable

Air cargo still represents just one percent of global trade by volume but accounts for nearly 30 percent by value with increasing importance given the geopolitical and tariff moves.

And as Paul Griffiths, Chief Executive Officer, Dubai Airports says: "This is not just about speed and efficiency. It’s about building a more sustainable, agile, and resilient supply chain - one that serves people as much as it supports economies.​"

André Majeres, Head of Cargo Operations, Mail & E-Commerce and OSS - Cargo Operations, International Air Transport Association (IATA) adds that the air cargo industry faces numerous challenges in its pursuit of operational efficiency & excellence. "In a global economic environment characterised by volatility, uncertainty, complexity and ambiguity (VUCA), numerous factors such as climate, technology, infrastructure, capacity, talent, procedures, standards, security challenges and regulations continue to exert significant influence on the industry.

"Stakeholders are continuously striving to enhance their systems and processes to achieve optimal performance. This involves ensuring the efficient utilisation of resources, adoption of recent technology and innovation, minimising waste and improving profitability. By addressing these multifaceted challenges, the industry aims to maintain resilience and adaptability in an ever-changing global landscape.

"Operational excellence extends beyond efficiency. With the support of the IATA Cargo Handling Council (ICHC), IATA has developed a white paper to introduce and define operational efficiency and operational excellence from standards compliance to innovation. In this major transformation, driven by rising trade volumes, evolving customer expectations, regulatory pressures and the need for greater resilience and sustainability, traditional cargo facilities, often constrained by aging infrastructure and manual processes, must adapt to meet growing demands for efficiency, scalability and compliance.

"IATA has now published the 2025 Vision for the Future of Air Cargo Facilities white paper which addresses these challenges, outlining the technological advancements shaping the next generation of air cargo operations and providing a roadmap for their implementation."

High volumes, tough ground handling challenges
Hactl has always been set up as a high-volume handler, using cutting-edge automation and data systems to maximise productivity while retaining high service quality and consistency, says Wilson Kwong, Chief Executive, Hactl. "We also have considerable headroom for further growth, both short-term and long-term, assisted by our integrated Hactl control centre (iHCC), which manages and monitors our entire operation, and uses demand modelling to assist in optimisation of resources to meet short-term workload spikes."

Our current project is autonomous electric tractors, and we are perfecting equipment to make it perform all duties (such as coupling and uncoupling dollies of different heights) without human intervention.
-Wilson Kwong, Hactl

The rapid growth of cross-border e-commerce has significantly increased cargo volumes, bringing new challenges in balancing facilitation and security, according to Carsten Hernig, Deputy General Manager and VP Production, Sales & Marketing, Shanghai Pudong International Airport Cargo Terminal Company (PACTL). "Finding the optimal balance between operational efficiency and safety management is becoming more critical.

"At the same time, the variety of lithium battery shipments continues to expand, which requires deeper specialised knowledge. Thus, how to ensure fast and accurate handling while fully meeting aviation safety requirements is a key focus.

"Furthermore, the increased volume has also brought more differentiated regulatory requirements and more frequent updates to airline handling manuals. Maintaining full compliance in the handling of special cargo such as pharmaceuticals and hazardous materials demand continuous attention, expertise and operational refinement. In response, PACTL continuously strengthens our training programmes, optimises handling procedures and enhances digitalisation efforts to ensure safe, compliant and efficient cargo operations."

Handling of hazardous materials - challenges and outlook
It is known that lithium batteries are an increasingly important element of air cargo, but that they also present potential safety challenges – particularly the risk of uncontrollable fires, according to Kwong of Hactl. “That is why Hactl has invested in an intelligent thermal detection system to provide early warning of any unusual temperatures in any cargo, and why we have a dedicated lithium batteries storage zone, which is separated from other storage and has fire suppression systems. Our precautions also extend to our automated handling systems which now allocate remote storage locations to lithium batteries."

With the growing emphasis on safety across the air cargo industry, the handling of hazardous materials has become more sophisticated and regulated, according to Hernig of PACTL. "To meet the evolving market demands, we plan to expand six independent DG warehouses with a total area of about 3,322 square metres at PACTL WEST. In addition, to prevent dangerous goods from being exposed to sun or rain in the process of shipment, canopy covers totaling 949 square metres are also being fully considered and planned.

"One of the key challenges is the increasing diversity of goods containing hidden hazardous characteristics, which makes the identification of dangerous goods more complex. At the same time, managing the safety risks associated with the transportation of lithium battery-related dangerous goods has become a major focus. Furthermore, higher standards from regulatory authorities require more standardised procedures for acceptance inspections, handling and storage of hazardous goods.

"To address these challenges, we have continuously updated our standard operating procedures (SOPs) in alignment with IATA DGR requirements to meet evolving industry standards and regulatory expectations. We have obtained CEIV Lithium Batteries, demonstrating our commitment to safety and excellence in handling hazardous and high-risk cargo."

Is tech an enabler for ground handling?
Hernig is very upfront on this: "Technology is no longer an option — it is the backbone of modern ground handling. We are also very proud to have completed the implementation of our front-end system Easy Cargo. Through this platform, customers and stakeholders now benefit from fast, complete and transparent information flows, significantly reducing paperwork, manual filing and on-site queuing.

"Automated functions such as arrival notifications and inventory updates ensure proactive communication and minimise the need for second queries — setting a new benchmark for customer experience. Meanwhile, we’re actively involved in the ONE Record initiative to streamline date sharing across the supply chain, and have embraced Cargo iQ standards to drive end-to-end shipment visibility, performance benchmarking, and process transparency.

"Looking ahead, we are accelerating deeper integration of AI, automation and digital platforms to create smarter and more customer-centric cargo handling solutions to respond to the dynamic demand patterns."

Automated functions such as arrival notifications and inventory updates ensure proactive communication and minimise the need for second queries — setting a new benchmark for customer experience.
-Carsten Hernig, PACTL

Kwong adds: “Tech has always been an essential aspect of Hactl operations: from our self-developed community cargo management system (COSAC) launched in the early 80s (now in its third iteration and constantly upgraded) through our huge automated handling systems, and, more recently, robotics and AI – for example, automated monitoring for defects in our handling equipment to prevent breakdowns, and our current deployment of autonomous electric tractors for ramp towing.

"Added to our relentless drive for digitalisation in all processes in our business and our industry, we consider ourselves in the vanguard of tech development in handling. What you see today at Hactl often becomes tomorrow’s norm."

Professional development opportunities
PACTL, Hernig says, is committed to supporting employees’ professional development through structured and diversified career pathways. "At PACTL, we have identified key skill requirements across operational roles and developed specialised training programmes led by internal experts. As a Civil Aviation Administration of China (CAAC)-registered and IATA competency-based training and assessment (CBTA-Corporate) certified training institution, we offer professional courses on dangerous goods regulations, cargo introductory, perishable cargo regulations, live animals regulations and more.

"We are also establishing three major career tracks — leadership and management, technical expertise, and operational excellence — to offer clear growth opportunities and targeted talent development for key positions. In addition, we also focus on talent development through our management trainee programmes to cultivate the next generation of talent.

"At PACTL, we believe that investing in our people means investing in our future — and we are dedicated to helping every employee grow, thrive and achieve their full potential."

Training and development opportunities play a vital role in improved ground handling at Hactl. "That’s why our Executive Director of People & Culture sits on our management board, and why we maintain impressive in-house training facilities in a dedicated suite that’s currently being updated," says Kwong. "Our training facilities for DGR are IATA-accredited, so we can also train third party staff. We use virtual reality to train new ramp staff away from the hazards of the live ramp environment. All Hactl staff receive frequent training in hard and soft skills to maximise their abilities.

"Safety is a high priority - so we have an annual Safety Week and even run an annual international forklift and pallet building competition to nurture best safety practice in our industry.

"As regards to development, we offer fast track training and development for promising young talents to progress into management. Overall, we believe our staff training and development programme plays a key role in building a workforce in which 50 percent have worked with us for over 10 years, and many have served for more than 40."

Ground handling and sustainability
Hactl’s Sustainability Strategy Framework takes the 17 UN sustainable development goals (SDGs) as inspiration, and informs every decision and action taken throughout our business. Kwong says: "This means more than just climate mitigation measures – although we are a signatory to the SBTi and have had our targets approved by them - to include many moves to create a safe, pleasant and caring work environment free from any kind of bias based on gender, race or religion. We also actively support the less fortunate in our community."

PACTL is actively advancing initiatives to support greener and more responsible operations, and have already implemented a range of measures to reduce their environmental impact and will continue to drive strong efforts in this direction. Hernig says: "At our PACTL WEST, a transparent warehouse roof design has been adopted to maximise the usage of sunlight during the daytime. Since 2021, we have gradually introduced energy-saving lights with the goal of reducing electricity consumption by more than 15 percent. As part of our commitment to green operations, PACTL WEST will also feature solar energy integration, further reducing our carbon footprint.

"We also advocate the use of environmentally-friendly materials throughout the company. A paperless office initiative was implemented in 2012, resulting in a 24 percent reduction in paper consumption and savings on other office supplies.

"Since 2013, we have been advancing an e-driven forklift project and replacing 80 percent of own-used diesel forklifts with electric ones. Since 2016, we have further promoted electric forklifts solutions to forwarders, a further step to significantly reduce CO2 emissions.

"In the coming days, PACTL remains committed to embedding sustainability into all aspects of our operations to drive long-term development of the air cargo industry."

Sustainability remains a core priority with electrification, energy-efficient infrastructure and carbon reduction initiatives playing a key role in aligning air cargo operations with global environmental targets.
-André Majeres, IATA

Innovations for ground handling
PACTL is driving key innovations in ground handling to boost efficiency and safety, says Herning. "Our Easy Cargo platform enhances online operations, streamlining cargo handling and improving accessibility for stakeholders. A 3,600-square-metre dedicated hazardous goods warehouse is under construction at PACTL West, designed with intelligent features for safer and more efficient handling. We’re also piloting unmanned equipment to optimise processes, reduce manual labour and speed up operations. Additionally, innovations in international transit operations will strengthen Shanghai’s position as a key cargo hub, enhancing connectivity and service efficiency.

"To meet the rising demand for pet air travel, we launched a new Pet Lounge on May 1, 2025. Located at PACTL Terminal 1 with access to airside, it serves all three terminals operated by PACTL at PVG. This 70-square-metre facility is equipped with 24/7 CCTV monitoring, temperature and humidity tracking along with professional care to ensure pets’ safety and comfort, reflecting our commitment to more humanized and thoughtful ground services.

"At PACTL we uphold the highest standards of safety and security and continue to meet the evolving needs of our customers in a dynamic marketplace."

Hactl is already using robotics in its business (for example, dispensing maintenance spares to engineers through automated parts store) and the plan is to increase these operations. "Our current project is autonomous electric tractors, and we are perfecting equipment to make it perform all duties (such as coupling and uncoupling dollies of different heights) without human intervention. This technology will then readily translate to other equipment such as ramp loaders and warehouse forklifts. This move is in response to the increasing challenge of recruiting staff for less popular duties like ramp work that involve working outdoors in sometimes inclement weather, long commutes and unsociable hours."

Future of ground handling
The future cargo facility will be safe, secure, sustainable, automated, connected and smart, says Majeres of IATA. "It will enable seamless data exchange, end-to-end visibility and AI-driven operational optimisation. Technologies such as autonomous ground support systems, real-time tracking and connected infrastructure will improve efficiency, asset utilisation and shipment flow visibility.

"Sustainability remains a core priority with electrification, energy-efficient infrastructure and carbon reduction initiatives playing a key role in aligning air cargo operations with global environmental targets. As automation and AI adoption accelerate, workforce transformation will be critical, requiring upskilling and new collaboration models between human operators and intelligent systems.

"By leveraging industry-wide innovations and addressing integration challenges, stakeholders can enhance operational resilience, optimise resource allocation and ensure long-term competitiveness."

PACTL is planning to further expand its forward terminals to strengthen cargo collection across the Yangtze Delta region, while also exploring opportunities for collaboration with overseas terminals to extend global reach. Herning says: "We’re also establishing a new cross-border e-commerce cargo handling center at Hongqiao Terminal to meet the booming demand. And at PACTL West, we’re not just upgrading facilities — we’re integrating unmanned equipment to take efficiency and safety to the next level. Plus, we’re all-in on digitalisation to streamline operations and deliver superior service. Every step we take aligns with PACTL’s core values: Customer First, Safety Always and Quality Guaranteed, ensuring we stay ahead in this ever-evolving market."