Airfreight is an essential and highly sophisticated part of an economy’s logistics infrastructure and has become one of the most effective tools to explore world markets. The overall trend towards fast reliable delivery and the transformation of China’s economy along with the value chain of production, have boosted demand for air transportation. Due to these developments, the air cargo market, which is still at low levels particularly in domestic transportation, is one of the fastest growing markets in China.
The regional focus of this study is on the economic powerhouse of China, the Greater Pearl River Delta (GPRD) located in the southern province of Guangdong including Hong Kong and Macao. In many respects this is one of the most interesting economic entities of the world. Economy and infrastructure are integrated on a very high level. The GPRD features many extremes: its strong economic power, its rapid growth, the highest in China for many years, its population density and last but not least, its aviation landscape. Within radial distance of about 100 km, five international airports are at service, creating the highest airport density in the world. Three of these airports are among China’s top five airports.
The clear leader among them is Hong Kong International Airport (HKIA), a major hub in Asia featuring the world's highest international air cargo throughput for many years. Its dominant counterpart for domestic traffic is located some 100 km north in the very heart of the PRD, Guangzhou Baiyun International Airport (GBIA). The strong air cargo business of HKIA, that is largely fed by PRD freight has been watched closely by Mainland administrations. Liberalised air traffic policy in recent years has rapidly expanded China’s own international air cargo traffic. To support this expansive strategy, a completely new airport was built, featuring the biggest and most modern air cargo facilities in China. This new airport might take substantial business away from HKIA in the future.
The first part of the study provides an overall introduction to the development of the Chinese aviation and air cargo market. Part 2 describes the macroeconomic structure of Southern China and provides an extensive overview of the GPRD air cargo market. This is followed by a detailed comparative analysis of the two airports in the center of this study and evaluates their future development prospects and the likely development of the region's air cargo landscape.
Table of Contents
1.1. Administration
1.2. Airlines
1.2.1. The first airlines
1.2.2. Market Consolidation and the emergence of the “Big Three”
1.2.3. Recent Developments
1.3. Airports and supporting Infrastructure
1.3.1. Change in ownership structure
1.3.2. Chinese airports income structure
1.3.3. Foreign participation
1.4. Air traffic rights policy
1.4.1. Air traffic rights in China
1.4.2. Air traffic rights in Hong Kong
2. THE AIR CARGO MARKET IN CHINA
2.1. General characteristics of air cargo
2.2. Types of air cargo
2.3. Air cargo growth trends
2.4. Air cargo in China
2.4.1. Emergence of an industry
2.4.2. Air cargo market structure
2.4.3. Major cargo airlines
2.4.4. Major cargo airports
3. THE GREATER PEARL RIVER DELTA
3.1. Basic facts
3.2. Administration
3.3. Economy
3.3.1. Economic structure
3.3.2. Rise of the GPRD’s economy
3.3.3. Regional breakdown
3.3.3.1. Guangdong
3.3.3.2. PRD Economic Zone
3.3.3.2.1. Eastern PRD
3.3.3.2.2. Central PRD
3.3.3.2.3. Eastern PRD
3.3.3.3. Hong Kong
3.3.3.3.1. Hong Kong's trade pattern
3.3.3.4. Macao
3.3.4. Regional comparison - GPRD and YRD
3.3.5. Economic outlook
3.4. Logistics structure
3.4.1. Regional breakdown
3.4.1.1. Guangzhou
3.4.1.2. Shenzhen
3.4.1.3. Hong Kong
4.1. Regional distribution
4.2. Major commodities
4.3. Major air cargo markets
4.4. Air cargo in Hong Kong
4.4.1. Structure of air cargo flows in Hong Kong
4.5. Airports in the GPRD
5. GUANGZHOU BAIYUN INTERNATIONAL AIRPORT
5.1. Location
5.2. Administration
5.3. Financing
5.4. Facilities
5.5. Customs
5.6. Principal Carrier
5.7. Route network
5.8. Air cargo market structure
5.9. Other
6. HONG KONG CHEK LAP KOK INTERNATIONAL AIRPORT
6.1. Location
6.2. Administration
6.3. Financing
6.4. Facilities
6.4.1. Cargo handling facilities – 1st tier
6.4.1.1. SuperTerminal 1 – HACTL
6.4.1.2. Asian Airfreight Terminal – AAT
6.4.1.3. Express Cargo Terminal – ECT
6.4.2. Cargo handling facilities – 2nd tier
6.4.2.1. Airport Freight Forwarding Center
6.4.2.2. Tradeport Logistics Centre
6.4.2.3. Marine Cargo Terminal
6.5. Intermodal infrastructure
6.6. Customs
6.7. Principal carrier
6.8. Route network
6.9. Air cargo market structure
6.10. Other
7. THE AIR CARGO INDUSTRY DYNAMICS
7.1. Demand side
7.1.1. Air cargo volume potential
7.1.2. The air cargo community
7.1.2.1. Cargo agents/ freight forwarders
7.1.2.2. Airlines
7.1.2.3. Government/ Regulatory body
7.1.2.4. Service Providers
7.2. Supply side
8. GBIA AND HKIA – ANALYSIS OF COMPETITIVE FACTORS
8.1. Air cargo potential of the GPRD
8.2. Catchment area of GBIA and HKIA
8.3. Costs
8.4. Geographical location
8.5. Capacity
8.6. Connectivity, Frequency and Network
8.7. Customs
8.8. Infrastructure
8.9. Intermodal connectivity
8.10. Company’s aviation policy
8.11. Cargo Agent’s use of GPRD airports
8.12. Influential factors on the development of GPRD airport landscape
8.12.1. Political Factors
8.12.2. China’s WTO entry
8.12.3. Closer Economic Partnership Arrangement – CEPA
8.12.4. Improvement of soft factors
8.12.5. The Taiwan issue
8.13. Competitive Landscape
8.13.1. Competing airports for origin/destination traffic
8.13.1.1. Shenzhen (SZX)
8.13.1.2. Macao (MFM)
8.13.1.3. Zhuhai
8.13.2. PRD A5 Forum
8.13.3. Competing airports for transshipment traffic
8.13.3.1. Shanghai Pudong (PVG)
8.13.3.2. Beijing (PKG)
8.13.3.3. Taipei (TPE)
8.13.3.4. Singapore (SIN)
8.13.3.5. Seoul Incheon (ICN)
8.13.3.6. Bangkok (BKK)
9. CONCLUSION - FUTURE ROLE OF GBIA AND HKIA IN THE GPRD AIR CARGO MARKET
Research Objectives & Core Themes
The primary research objective of this paper is to conduct a competitive analysis of Guangzhou Baiyun International Airport (GBIA) and Hong Kong International Airport (HKIA) to forecast their future roles within the southern Chinese and Asian air cargo markets. The paper explores the microeconomic factors influencing airport competitiveness and examines how both hubs are positioned to serve the Pearl River Delta (PRD) region's rapidly growing logistics requirements.
- Competitive positioning of GBIA vs. HKIA as regional cargo hubs.
- Economic and logistics analysis of the Greater Pearl River Delta (GPRD).
- Impact of liberalisation, WTO entry, and CEPA on air traffic policy.
- Operational factors including customs, infrastructure, costs, and intermodal connectivity.
- The influence of political factors and future developmental outlooks for southern Chinese aviation.
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3.3.2. Rise of the GPRD’s economy
In the 1960s and 70s Hong Kong had built up substantial manufacturing industries exporting to world markets, while Guangdong and the PRD were still dominated by arable farming and small rural villages. The start of China’s economic reforms in 1978 lead to a relocation of large parts of production processes from Hong Kong to the southern part of the Mainland. While Hong Kong provided capital, management, high-end business and financial services, logistics and technology, the PRD contributed its land resources and huge amounts of cheap labour.
Thus, FDI has played a major role in the delta’s rapid economic development. The vast majority of the external investment in the PRD has come from Hong Kong. The SAR has also been the biggest foreign investor overall in China with about 55% of the country’s FDI stock being owned by Hong Kong entities. Most of these investments are located in the PRD. As a result, Hong Kong’s SME control much of the light industry’s production capacities in the PRD. Key reason for the tight mutual linkage between Hong Kong and the PRD has been their geographical proximity. Cultural reasons such as speaking the same language – Cantonese – could also have played a role. Due to its excellent connectivity via Hong Kong and high level of productivity the PRD is also a major destination for investments from Taiwan.
Summary of Chapters
1. Administration: Provides an overview of the regulatory evolution of China's civil aviation, specifically the transformation of the CAAC and the emergence of market-oriented airline groups.
2. THE AIR CARGO MARKET IN CHINA: Examines the growth trends, market structure, and the rise of airfreight as a vital logistics tool in China's rapidly modernising economy.
3. THE GREATER PEARL RIVER DELTA: Analyzes the economic structure, regional development, and the logistical symbiosis between Hong Kong and the Mainland PRD cities.
4. Air cargo in Hong Kong: Details Hong Kong's role as a global entrepot and the specific structure of its air cargo flows, highlighting the dominance of gateway traffic.
5. GUANGZHOU BAIYUN INTERNATIONAL AIRPORT: Describes the development, facilities, and strategic importance of GBIA as a central national hub in the Mainland aviation strategy.
6. HONG KONG CHEK LAP KOK INTERNATIONAL AIRPORT: Evaluates the operational infrastructure, terminal facilities, and the status of HKIA as a leading international cargo hub.
7. THE AIR CARGO INDUSTRY DYNAMICS: Highlights the demand and supply side factors, including the role of freight forwarders, carriers, and service providers in hub development.
8. GBIA AND HKIA – ANALYSIS OF COMPETITIVE FACTORS: Provides an in-depth comparative analysis of the two airports based on field study data, examining costs, infrastructure, and political influences.
9. CONCLUSION - FUTURE ROLE OF GBIA AND HKIA IN THE GPRD AIR CARGO MARKET: Summarizes the key competitive findings and offers a forecast regarding the future development prospects of the two hubs.
Keywords
Airfreight, Greater Pearl River Delta, GPRD, Guangzhou Baiyun International Airport, GBIA, Hong Kong International Airport, HKIA, Logistics Hub, Air Cargo Market, Supply Chain, Airport Competition, Foreign Direct Investment, CAAC, CEPA, Transshipment
Frequently Asked Questions
What is the core focus of this research paper?
This paper examines the competitive dynamics between Guangzhou Baiyun International Airport and Hong Kong International Airport, evaluating their roles within the Greater Pearl River Delta's air cargo sector.
What are the central thematic fields covered?
The paper covers regional economic development, air traffic policy, airport infrastructure, cost structures, and the influence of logistics service providers on hub performance.
What is the primary research question?
The research seeks to determine the competitive position of GBIA relative to HKIA and to forecast their future functional specialisation in the Asian air cargo market.
What scientific methods were employed?
The study relies on a combination of existing logistics literature and a primary field study conducted in 2005, which involved extensive interviews with eleven branch and airfreight managers of cargo agencies.
What topics are discussed in the main chapters?
The main chapters detail the aviation industry landscape in China, the macroeconomic integration of the GPRD, comprehensive descriptions of the two main airports, and an comparative analysis of competitive factors.
Which keywords best describe this study?
Key terms include Airfreight, GPRD, Hub Competition, Supply Chain, Logistics Infrastructure, and International Air Cargo Markets.
How does the Hong Kong-Macao-Zhuhai bridge influence the competitive landscape?
The bridge is expected to drastically reduce travel time between Hong Kong and the western PRD, potentially reinforcing HKIA's accessibility and status as a primary regional service hub.
Why are political factors significant in this analysis?
Political factors, such as government aviation strategy, China's WTO accession, and the CEPA agreement, are critical because they dictate route allocation, regulatory freedom, and investment environment for the airports.
- Quote paper
- Magister Jana Schebera (Author), 2006, Development of Airfreight Hubs in the Southern Chinese Pearl River Delta - A Comparative Analysis, Munich, GRIN Verlag, https://www.grin.com/document/56490
