Hactl focused on IT Innovation to optimize supply chain

Hong Kong International Airport was ranked, yet again, number 1 as the world’s busiest air cargo hub, thanks to its strategic location and state-of-the-art facilities, making it a central node in global trade, particularly for trans-Pacific and intra-Asian routes.

Hong Kong International Airport was ranked, yet again, number 1 as the world’s busiest air cargo hub, thanks to its strategic location and state-of-the-art facilities, making it a central node in global trade, particularly for trans-Pacific and intra-Asian routes.

Year after year, Hong Kong has been excelling at what it does best – moving cargo from one part of the world to another in the most efficient way possible. There are eight entities—Hong Kong Air Cargo Terminals Ltd (Hactl); Carrier Liaison Group (CLG); Hong Kong Association of Freight Forwarding and Logistics Ltd. (HAFFA); Hong Kong Customs & Excise Department (C&ED); Asia Airfreight Terminal Co Ltd. (AAT); DHL Aviation (HK) Ltd. (DHL); and Cathay Pacific Services Ltd., which drive the cargo business of the airport.
Topping the charts is Hong Kong Air Cargo Terminal (Hactl) which commenced operations in 1976 and has continued to perform every which way. In 1998, it opened a custom-built Super Terminal 1, designed to handle cargo in the smartest possible way, and that stands way ahead of most other terminals across the world, being the single largest air cargo terminal in the world. It’s massive handling systems are the last word in automation and efficiency.
Its comprehensive facilities accommodate all kinds of cargo. Hactl is accredited under every relevant industry standard. It accommodates every type of aircraft and truly provides a one-stop-shop: terminal handling, ramp handling, crew transport, documentation, charter flight support and value-added logistics services.
Wilson Kwong, Chief Executive of Hactl talks to Air Cargo Update on digitalization and sustainability in air cargo business.

Is the Cargo sector slow in digital adoption, unlike the passenger segment, if so, why?
Many people make the mistake of comparing passenger business with cargo, and making unfavourable comparisons about their respective take-up of digital processes. The truth is, there is no similarity: cargo cannot speak, cannot adjust its travel plan en-route, and cannot run for the boarding gate. It is passive, pre-planned, and passes through the hands of multiple service providers such as forwarders, handlers, airlines and Customs authorities. Different types of cargo require different packaging and handling, different routes and different aircraft types. Cargo is subject to more intricate regulation. Cargo cannot call or text you to say it is running late. For a modern supply chain that requires seamless transfer of data, demands visibility of location and often condition, requires strict scheduling, and adherence to geo-specific regulations, and all at minimum cost, the task of digitalization is hugely complex and costly. Nevertheless, the industry has already made huge strides, but it’s no surprise that more progress is still required.

What segments in the Cargo sector need immediate innovation and why?
There are players in every sector that need to do more. It is often not the small companies that are the problem: some larger companies are working with legacy systems that are expensive and difficult to replace, and incompatibilities that are sometimes the result of mergers and acquisitions. At Hactl, we have invested heavily for decades in IT innovation, and it has created an almost paperless business and paid huge dividends in efficiency, service enhancement, resilience and cost reduction. Our many initiatives have inspired others to follow suit, and helped drive the cause of innovation.

E-commerce is growing phenomenally, what kind of innovation is required to streamline operations and reduce costs, could you give specific examples?
Everyone in e-commerce is driven by what the end consumer wants – which is visibility and fast delivery, at minimum cost. That demands digital supply chains with no barriers to data transmission and sharing. Hactl’s systems facilitate this, and we are able to integrate with external systems where they are also capable. Our Hacis HEx system provides all the data an e-commerce customer could want.

Artificial Intelligence is fairly new in the air cargo sector, what kind of potential do you see?
The air cargo industry as a whole is gradually embracing new AI-powered solutions to enhance efficiency, optimise logistics and improve overall service delivery. Potential uses include AI-driven automated warehouse management, flight route and schedule optimisation, cargo space optimisation, dynamic pricing models, enhanced security and surveillance, and AI chatbots and virtual assistants in customer service automation.
At Hactl, we have recently deployed several new AI-powered solutions. On operational efficiency, we have adopted a cloud-based AI OCR (Optical Character Recognition) service coupled with a vendor patented machine learning algorithm, to convert paper-based master airway bills into digital format. The process used to be manual, and susceptible to human error.
On security and surveillance, we have deployed AI-based video analytic solutions to detect unauthorized terminal access and parking, with satisfactory results. More applications will be deployed in the future. Lastly, some of our cybersecurity solutions have now been upgraded with AI capabilities to more accurately detect abnormalities in computers and networks behaviour, helping us to identify possible cyberattacks much earlier.
High cost of technology acquisition, is that an issue?
It could be for some smaller operations where economies of scale do not exist, or for situations where bespoke solutions are required. But this should be balanced by the inevitable increase in off-the-shelf solutions, growing demand and accompanying reductions in cost.

Could you list 5 innovations the cargo industry cannot ignore?
Among recent innovations, we believe 5G, IoT (Internet of Things), AI/GenAI, heavy-duty cargo handling robotics and heavy-duty autonomous vehicles are particularly relevant to the cargo industry and have the greatest potential to automate essential cargo operations currently handled by human beings.
Recent technology developments are tending to combine the capabilities of multiple innovations. One example is an AI-powered heavy-duty autonomous vehicle equipped with 5G-enabled IoT sensors, which would be superior to a simple heavy-duty autonomous vehicle, especially in dealing with dynamic situations such as road congestion or accidents.