Hactl Company Visit

Hactl  Company Visit                                                                                     24th February,2014






We were very honored to have a opportunity to visit Hong Kong Air Cargo Terminals Limited (Hactl). Hactl was established in 1976 but operated since 1976, it is one of the world’s leading air cargo terminals with the unique world-class facilities, highly efficient operation, and innovative technology to supported the import, export and transshipment of air cargo in Hong Kong.
Vision and Values
Hactl aims to remain as the leading air cargo terminal in Hong Kong by:
  • Consistently delivering exceptional service that exceeds customers’ expectations
  • Continuing to invest in innovative technologies
  • Enhancing logistics supports between Hong Kong and mainland China
  • Engaging the best people in our business
  • Optimising our operations and resources
  • Living up to our core values: Trust, Respect, Professionalism, Integrity, Teamwork


Hactl's Values
Facilities
·        moved to SuperTerminal 1 at Hong Kong International Airport in Chek Lap Kok in 1998
·        3,500 Container Storage System (CSS) positions
·        10,000 Box Storage System (BSS) positions
·        a comprehensive range of specialized cargo handling facilities
·        To cater for all cargo types e.g. temperature-controlled products, valuable goods, livestock
Logistics Connection
·        offered multi-modal services through the wholly-owned subsidiary Hacis since 1984
    • Hacis set up its own multi-purpose service centers and logistics hub and launched its SuperLink China Direct service to provide customers with integrated logistics solutions
·        Efficiency  of expanding market in Mainland China
Innovative Technologies
·        COSAC-Plus
    • enabled the most efficient cargo tracking, information sharing and facilitates e-freight
    • Allowed other parties like all airlines, freight forwards and related government departments monitoring and managing air cargo handled by Hactl
Services
·        Physical Cargo Handling
·        Ramp Handling
    • aircraft loading and unloading, load control, flight operations, crew administration etc
·        Documentation Handling
·        Crew Transportation
·        Intermodal Services
    • Road Feeder Service in Hong Kong as well as connecting to Mainland China
We took photo at Hactl front door
The visit divided in three parts: Introduction, Q&A session and warehouse visit.

Introduction

The company first showed us a video and a model that introduce their company background, business natures, their resources, their technologies and their markets to us.

We concentrated on listening the introduction


Q&A Session

1.     The performance rate on landside services (e.g. Truck waiting time, cargo acceptance time, cargo release time) always maintain to full capacity. What control policy have you made to maintain the superior service quality?

There are over 2600 employees who are responsible for varieties of duty, in order to maintain the high service quality, corporation and communication among departments are very important, so as to customers. Hactl has sign a service level agreement (SLA) to promise the performance target, such as the length of handling time, with each customer. In addition, Hactl has regular meetings with their customer reviewing the existing operations to see wherever the customers satisfy their service.


2.     The bad weather has become ubiquitous, like the deadly snow and ice storm in America’s southern states and eastern coast for the recent days. Would this bad weather create any challenges for your company like delay for cargo or rising cost? What are the contingency arrangements to deal with the bad weather for your company?

The contingency arrangement under the bad weather is not the consideration of Hactl as they are the third party that just follows the decision made by airlines.


3.     AAT has made a success in applying RFID for their security and operation. Do Hactl have any plan to improve their security level rather than using manual labor?

Hactl has invested a system called COSAC-Plus. One of its functions similar to RFID named Truck Paging which is a mobile app for truck drivers. Drivers can know where and when they can load or unload their goods via the mobile app.
COSAC PLUS Mobile App

There are 4 function in the mobile app, truck paging is one of them



4.     Different cargoes may have various investigation measures by government departments like C&E and AFCD dept. What are the roles of Hactl in managing the product and information flow?

Hactl has provided facilities and has authorized the government departments to access the COSAC-Plus. There are examination halls in Hactl for different government departments, such as Hong Kong Customs and Excise Department and Civil Aviation Department. When the government departments need to check one of the cargos, they can pick that cargo to their examination hall by using the COSAC-Plus.


5.     After the opening of Cathay Pacific Cargo Terminal, how does it affect the company’s business? As far as I know, most airlines in Hong Kong handle end customers through air forwarder agencies. Does the company have the intention to provide the services to the end customers like air forwarder agencies?

Cathay Pacific was the biggest customer of Hactl, Hactl lost 30% business since Cathay Pacific Cargo Terminal has opened. On the other hand, many spaces and resources in Hactl are free so that Hactl can take the job from other customers which cannot take previously due to the resource limited to achieve better customer service and fulfillment . In addition, there is an opportunity for Hactl to diversify their business, for example opening a new daughter company, Hacis. Hacis is a logistics support services provider which is similar to air forwarder agency, it offers airlines and freight forwarders services between Hactl's SuperTerminal 1 and the next transit point in the South China.


6.     The Hong Kong Government approved Airport Authority to build a third runway in 2012. Suppose the third runway is constructed, Hong Kong International Airport will be able to accommodate 620,000 flight movements per year which is 200,000 more than existing capacity. How would Hactl evolve to satisfy the increasing demand of cargo handling from the airlines in the future while at the same time keeping its current exceptional service performance?


In case the third runway is constructed, more airlines are able to set their point in Hong Kong. Therefore, both Hactl and Hacis will be benefit from it while Hactl, as mention in Question 5, has sufficient resource to handle the increasing demand.

Warehouse Visit

 We visited Hactl's warehouse, and had a better understanding on the warehouse operation. The staff brought us around the company and showed us the process of their daily operations which were done by the COSAC-Plus system mostly. The warehouse was very large, and we had the opportunity to go to the outdoor area.  




Hactl's warehouse with COSAC-Plus system


We had a happy time in the visit

Reflection on the visit

Having a warehouse visit, our concept of logistics operation were more solid. We have an understanding on how warehouse is operated and how IT systems can help the industry. We were amazed that how useful of the automatic system COSAC-Plus  has help Hactl to deal with the large demand. In addition, after this visit we knew more about the air cargo terminal industry's nature and competitors. We were especially impressed by the impact of the opening of Cathay Pacific Cargo Terminal to Hactl. 
Reference: 
1. Hactl official website. (2014). Retrieved from http://www.hactl.com/en-US/Home.aspx
2. Hactl COSAC-Mobile. (2014). Retrieved from Google Play: 
https://play.google.com/store/apps/details?id=com.hsl.cosacmobile&hl=zh_HK
3. Cathay Pacific Cargo Terminal. (2014). Retrieved from Cathay Pacific Service LTD:
http://www.cpsl.com.hk/en-us/home.aspx