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      Changi finally returned to significant growth in 2016 after a decade of negligible gains.
      Last year the Singapore hub, which Airports Council International rated the 10th largest globally in 2015, handled a record 1.97 million tons, a 6.3 percent increase compared to a year earlier. An 8.4 percent year-on-year surge in December surely aided the positive result.
      By comparison, between 2011 and 2015, the South East Asia hub saw zero growth, with volumes failing to escape from a very narrow 1.83-1.87 million-tons-per-annum range. Indeed, the airport was already handling 1.78 million tons all the way back in 2004.
      In 2016 Changi reached all-time highs for passenger movements (58.7 million, up 5.9 percent) and aircraft movements (360,490, up 4.1 percent), while Changi’s top five country markets for airfreight were China, Australia, Hong Kong, the United States, and India.

 

Hoon Over The Moon

      Changi Airport Group Assistant Vice President of Cargo & Logistics Development Division Ms. Phau Hui Hoon told FlyingTypers that the addition of two new freighter airlines aided the 2016: Neptune Air, with 4 times weekly services to Penang; and Silk Way West, with 2 times weekly services to Azerbaijan and stopovers in Kuala Lumpur and Dubai. K-Mile Air also resumed 5 times weekly services to Bangkok.
      “Over the years, we have also seen a diversification of our cargo base, with strong growth in niche segments such as pharmaceuticals, perishables, and express/e-commerce,” said Ms Phau. “These segments performed well, contributing to a significant portion of Changi’s total cargo throughput. Pharmaceuticals grew at a 5-year compounded annual growth rate of 13 percent from 2010 to 2015.
      “For the first eleven months in 2016, pharmaceutical grew 10 percent year-on-year. Transporting high-value temperature- and time-sensitive pharmaceutical cargo can be complex due to the multiple requirements, and airfreight is one of the fastest and most efficient options of transportation.”

 

Pharma Pilots Growth

      Global spending on pharma cold chain logistics is projected to grow at 8-9 percent per year, totaling US$16.7 billion by 2020, according to Pharmaceutical Commerce. Asia is expected to account for the largest regional share growth with more than US$1.2 billion of cold chain growth through 2019.
      To support this growing trend, Phau said Changi Airport Group and its partners were working to raise pharmaceuticals handling standards within the airport community. “This year, to raise the local community’s handling standards and capability for temperature-sensitive pharma cargo, Changi Airport is the first airport in Asia to embark on a community approach for the IATA CEIV Pharma certification,” she said.

 

CEIV Pioneers

      “The pioneer group of companies in the Changi CEIV Community consists of SIA Cargo, dnata Singapore, Global Airfreight International, Expeditors Singapore, CEVA Logistics Singapore, and Schenker Singapore. SATS, the other ground handler at Changi, had already obtained its CEIV Pharma certification in 2014 and was the first facility to receive the certification.
      “Changi Airport Group has also joined Pharma.Aero, an organization comprised of stakeholders of the air cargo supply chain from around the world, dedicated to achieving excellence in end-to-end air transportation for pharma cargo.”

 

DHL Express Support

      Next year she is cautiously optimistic about the airport continuing its renaissance. The October 2016 official opening of DHL Express South Asia Hub, a 24-hour express hub facility located within Changi Airfreight Centre, helps propel continued success. The new hub has tripled DHL Express’ cargo handling capacity in Singapore and allows shipments to be processed six times faster.

 

SATS Not Sitting On Lead

      SATS’ new eCommerce AirHub is also due to open later this year. “In 2017, we look forward to the opening of SATS e-commerce hub in the first quarter,” she said. “SATS will be the first ground handler in the world to own such an airside facility, with automated processes for single scanning and sorting to save cargo processing time and increase efficiency.”
      However, Ms. Phau told FlyingTypers the global trading environment remained tough. “Notwithstanding the healthy growth posted at Changi Airport in 2016, we are mindful of the ongoing sluggishness of global trade growth which in turn presents clear headwinds for the air freight market,” she said. “As such, we continue to remain cautiously optimistic for 2017.”

 

Looking For A Few Good Flights

      “As part of our ongoing efforts to enhance air cargo connectivity, we are constantly on the lookout for opportunities to work with our airline partners to expand their freighter operations or operate new flights to Singapore.”

 

Moving East

      In the longer term, to support growth of Singapore’s cargo and logistics sectors, dedicated facilities for airfreight and air express services will be developed as part of the Changi East development. Projected for the late-2020s, Changi East will see the development of a 1,080 ha site, including the building of a new mega terminal, Terminal 5, a three-runway system, as well as industrial facilities, related infrastructure, and transport links.
      “This development will secure the long-term growth of Singapore’s cargo and logistics sectors and strengthen Changi Airport’s position as a major air hub,” she added.
Sky King