XN000022-1983-08-08 — Page 3

MONDAY, AUGUST 8, 1983

TODAY, THE AIR FREIGHT INDUSTRY PLAYS A SIGNIFICANT ROLE IN HONG KONG'S INTERNATIONAL TRANSPORT ACTIVITIES.

BY VOLUME, IT ACCOUNTS FOR A MERE 0.8 PER CENT OF THE TRADE,

AND THERE IS EVERY BUT BY VALUE IT TAKES UP 23 PER CENT INDICATION THAT THE TREND TOWARDS AIR FREIGHTING WILL INCREASE.

FOR INSTANCE, BECAUSE OF THE QUOTA LIMITATIONS AS WELL AS LOWER LABOUR COSTS IN SOME NEIGHBOURING ASIAN COUNTRIES, HONG KONG HAS BEEN PRODUCING MORE HIGH-VALUE GARMENTS AND OTHER TEXTILE ITEMS IN ORDER TO STAY AHEAD.

THESE GOODS ARE ALSO TIME-SENSITIVE AND COST-EFFECTIVE FOR SHIPMENT BY AIR. OTHER EXPORTS THAT MAKE UP A GOOD PROPORTION OF AIR CARGOES INCLUDE ELECTRONICS, TV GAMES, PHOTOGRAPHIC AND TELE-COMMUNICATION EQUIPMENT.

BY ITS HIGH EFFICIENCY AND STRATEGIC POSITION, HONG KONG HAS ALSO SUCCEEDED IN CAPTURING A CONSIDERABLE VOLUME OF THE AIR TRANSHIPMENT BUSINESS.

LAST YEAR, THIS TRAFFIC ACCOUNTED FOR 15 PER CENT OF THE TOTAL FREIGHT VOLUME RECORDED AT THE AIRPORT.

BESIDES CHINA, HONG KONG'S OTHER CUSTOMERS IN TRANSHIPMENT INCLUDE SOUTH KOREA, JAPAN AND TAIWAN WHICH ALSO TAKE ADVANTAGE OF LOWER RATES OFFERED BY CHARTERED FLIGHTS HERE.

ALL AIR CARGOES PASSING THROUGH HONG KONG ARE HANDLED BY HONG KONG AIR CARGO TERMINALS LIMITED (HACTL), WHICH WAS ESTABLISHED AS THE SOLE OPERATOR IN 1976.

+PREVIOUSLY, INDIVIDUAL AIRLINES OPERATED THEIR OWN TERMINALS

AT THE AIRPORT AND THIS LED TO CONSIDERABLE CONFUSION.

AS

A SOLUTION, THE GOVERNMENT DECIDED TO CENTRALISE THE MANAGEMENT BY RUNNING A SINGLE FACILITY IN CONJUNCTION WITH THE PRIVATE ENTERPRISE, THE SPOKESMAN SAID.

THIS CENTRALISED OPERATION USING THE LATEST MANAGEMENT TECHNIQUES OFFERS ONE MAJOR ADVANTAGE: AIRLINES USING IT CARRY NO ADDITIONAL OVERHEADS AND HAVE ONLY TO PAY THE RATES FOR USING THE TERMINAL,

THE PRESENT TERMINAL FEATURES MODERN EQUIPMENT OF THE HIGHEST INTERNATIONAL STANDARDS, AND IS CAPABLE OF SERVICING FOUR FREIGHTERS SIMULTANEOUSLY.

IN ANTICIPATION OF FURTHER GROWTH, CONSTRUCTION IS NOW UNDERWAY TO DOUBLE THE CAPACITY OF THE TERMINAL BUILDING TO

WORK ON IT IS EXPECTED AN ANNUAL THROUGHPUT OF 700 000 TONNES. TO FINISH BY EARLY NEXT YEAR.

/+THE PRESENT