Building A Vibrant Air Cargo Hub at Singapore Changi Airport

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1 Building A Vibrant Air Cargo Hub at Singapore Changi Airport 30 October 2012 Presented By: James Fong Assistant Vice President Cargo and Logistics Development

2 Contents Quick intro & Brief History of Changi Airport Changi Airport Air Cargo Traffic Key Contributing Factors in Building Changi Airport as a Cargo Hub

3 Corporatisation of Changi Airport in 2009 has enabled the group to be more focus and responsive to our partner s needs; The roles of CAG and CAAS Manages and operates Changi Airport and Seletar Airport Airport operations and management Air hub development (e.g. promoting to airlines) Commercial activities Airport emergency services Investments in foreign airports (under subsidiary Changi Airports International) Industry regulator Safety oversight and promotion e.g. pilot licensing and certification Air hub development (e.g. air services negotiations) Air navigation services provider Singapore Aviation Academy

4 Location of Singapore

5 Location of Changi Airport East of Singapore; Takeoff and Approach to/from the sea

6 Key Cargo Milestones in Changi Airport (1981) Official Opening of Changi Airport (2003) Official Opening of Airport Logistics Park of Singapore (ALPS) (2012) Official Opening of Fedex Air Cargo Express (ACE) Hub (1975) Decision to develop Changi Airport to replace Paya Lebar Airport (1985) Opening of the Changi Airfreight Center 3million tonnes capacity 470,000 m2 9 terminals (2010) Official Opening of SATS Coolport@Changi

7

8 Masterplan of Changi Airfreight Centre DHL South Asia Hub 3 4 TNT Regional Hub South of CAC SATS Coolport@Changi SingPost Airmail Transit Centre Hour Free Trade Zone 12 freighter bays 4 blocks of Cargo Agent Buildings and MegaPlex DNATA Cargo Terminal Singapore FreePort Approx. 20km or 30 mins to seaport 8

9 Some Changi Statistics Airport : Year to Date Cargo Performance 9

10 Singapore s air cargo tonnage grew rapidly in 1980s-1990s; Growth slowed down in last 10 years due to changes in technology and Singapore s economy Cargo tonnage

11 Changi s connectivity at a glance 6, Flights operate every week Scheduled airlines* 64 Country links* Cities connected to Changi* Freighter city links Million tonnes of airfreight in first 8 months of 2012 Data as at 1 Sep 2012 * Including codeshares 11

12 Strong interline opportunities to Changi s catchment markets of 45 cities in Southeast Asia, 15 in South Asia, and 10 in South West Pacific Operators offering feeder services to South East Asian destinations NW11/12 SIN-SOUTH ASIA No. Of Pax Flights 462 No. Of Freighter Flights 19 No. Of Airlines 16 NW11/12 SIN-SOUTHEAST ASIA No. Of Pax Flights 2626 No. Of Freighter Flights 148 No. Of Airlines 48 NW11/12 SIN-SOUTHWEST PACIFIC No. Of Pax Flights 454 No. Of Freighter Flights 20 No. Of Airlines 12 NW11/12: Northern Winter season (October 2011-March 2012)

13 Сотни Сотни Changi is gateway to S.E. Asia, but has no freighter connectivity to Russia Opportunities in the growing trade between Russia, Singapore & S.E. Asia Good potential to tap on growing trade between Singapore Russia, and S.E Asia - Russia Russia Trade between Singapore and Russia (Jan Aug) Jan - Aug 2010 Jan - Aug 2011 Jan - Aug 2012 Source: CAG Data Competency Centre Trade between S.E. Asia and Russia China Singapore Source: Seabury Data

14 Key contributing factors in building Singapore as a Cargo Hub 15

15 Multi-Agency and Partnership Approach Government Agencies Airport & Trade Association Airlines

16 A Strong Logistics Ecosystem is needed to support the growing manufacturing sector in Singapore Generating airfreight demand for Origin / Destination cargo movements 2010GDP: S$304 billion (US$223 billion) Others 18% Construction Wholesale & Retail Trade 17% 5% 12% 22% 14% 12% Manufacturing Financial Services Business Services Transport & Communications 2010 Total output in Manufacturing Sector: S$270 billion (US$198 billion) Transport Engineering Precision Engineering Biomedical Manufacturing 10% 9% 9% 8% 29% General Manufacturing Industries Chemicals Growth of Manufacturing Output in 2010: + 30% Source: Singapore Economic Development Board. 35% Electronics

17 Singapore s connectivity to the world - Gateway to Southeast Asia and Southwest Pacific

18 Large base of world class logistics service provides in Singapore Asia /M.E 19

19 Working with Business Partners to continuously invest in new handling capabilities to meet customers needs Tapping on New Cargo Segments: In addition to diversifying their cargo base, ChangiAirport continues to work with its business partners to target new cargo segments. Some examples include perishables, valuable cargo and express cargo The latest cargo facility is the new Fedex Air Cargo Express (ACE) Hub, which is the first of its kind air cargo facility in the region focusing on express cargo. Operating 24/7, The facility boast special on-site facilitation by Immigration and Checkpoints Authority and Singapore Customs SATS a 8,000 sqm on-airport facility dedicated perishables handling facility with multi-tiered zones with temperatures ranging from -28 C to 18 C, offers new market opportunities for logistic players looking to tap into the cool chain business. Singapore Freeport is 22,000 sqm facility fitted with cutting edge, high security storage system for high values collectibles such as fine art, precious metals and high end wine. The facility has 24/7 direct airside access to Singapore s Free-Trade Zone.

20 Efficiency of Logistics infrastructure and services Singapore Ranks 1 st in the 2012 Logistics Performance Index (LPI) Source: World Bank

21 Ensuring competitive cargo handling standards Performance of Ground Handlers are measured: Performance Standards Target Cargo documents available within 90% 2 hours of passenger aircraft arrival Cargo documents available within 90% 4 hours of freighter aircraft arrival Cargo available within 3.5 hours of 90% passenger aircraft arrival Cargo available within 5.5 hours of 90% freighter aircraft arrival

22 Trade facilitation through the use of IT systems Benefits for Logistics Providers, Importers and Exporters Single interface to multiple systems Minimum data re-entry and hence reduced errors Faster trade documentation processing Improved efficiency Launched in October 2007, TradeXchange provides seamless inter-connectivity to government controlling bodies (B2G) and business partners (B2B) for easy preparation and submissions of trade documents

23 Singapore IATA e-freight goal: Replace paper documentations with electronic messaging standards, to realize paper-free vision in air freight flow e-freight@singapore started in 2010 Leverage IATA electronic messaging standards to capture data@source and for data re-use Promote adoption of paperless freight documentation Ensure local air cargo and logistics industry remains competitive and increases productivity

24 4 Programme Tracks in Singapore 1. Air Cargo Agents IT Readiness Survey Establish SMEs current IT capabilities Identify and close gaps Current status: Survey completed 2. Air Freight Process Productivity Study (AFPPS) Demonstrate costs & benefits of e-freight@singapore Current status: Study completed 3. Implementation Plan / Call-for-Collaboration (CFC) Engage industry for sustainable solutions Private-sector led innovation Current status: Awarded funding to 3 consortia leads in Feb Solution development in progress 4. Industry Outreach & Engagement Engage industry to build interest Current status: Ongoing

25 THANK YOU 28

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