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specialreport

CAN HONG KONG

CARGO DOMINANCE?
CONTINUE ITS AIR

Long hailed as the undisputed king of air cargo in Asia, Hong Kong now faces
stiff competition from mainland China. While its strategic location, world-class
infrastructure, and efficient logistics network remain valuable assets, the question
remains: can it hold onto its crown in the face of this growing challenge?
Nehal Gautam

n today's interconnected world, air class infrastructure and an efficient logis- alongside a substantial 44.5% surge in
cargo has emerged as the backbone tics network, has cemented Hong Kong's exports. Notably, traffic to and from key
of global trade, driven by the relentless position as a leading air cargo hub in Asia. trading regions such as North America, Eu-
Idemand for swift deliveries and the rope, and the Middle East saw significant
surge in e-commerce activity. Hong Kong's dominance boosts during the month.
Valued at $200 billion in 2022, the in air cargo Its strategic location at the heart of Asia
global air cargo market size is poised for Since 1996, Hong Kong International Air- offers unparalleled air connectivity, acting
significant growth projected to achieve port (HKIA), managed by Airport Authority as a vital bridge between North America,
a compound annual growth rate (CAGR) Hong Kong (AAHK), has maintained its sta- Europe, and Asia. This translates to direct
of 5% by 2032, as per a report by Global tus as the world's busiest airport for inter- flights to key business centers worldwide,
Market Insights. Hong Kong, a vibrant city national cargo volume, underscoring the facilitating smooth cargo movement.
nestled on China's southern coast, has city's rich legacy in the air cargo industry. Additionally, HKIA boasts state-of-the-
long been a key player in global trade. AAHK's figures reveal that HKIA handled art infrastructure with dedicated cargo
Its strategic location at the crossroads of 4.3 million tonnes of cargo throughput in terminals and efficient customs clearance.
East and West, coupled with its business- 2023, marking a 3.2% annual growth. Janu- Moreover, Hong Kong possesses a highly
friendly environment inherited from its ary 2024 continued this positive trajectory skilled workforce with extensive experi-
British colonial past, has fostered a unique with a 31.1% year-on-year increase in cargo ence in air cargo logistics, ensuring seam-
cultural blend. This, combined with world- throughput, reaching 377,000 tonnes, less operations. The city's well-established
legal framework and pro-business govern-

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