Management at Incheon International Airport, Seoul, South Korea, is aggressively promoting the airport’s cargo business and undertaking a multibillion dollar building campaign to handle 7.7 million tons of cargo annually by 2020.
“With encouragement from our government, Incheon is keen to push its cargo traffic,” Young-Geun Lee, the executive vice president of ICN told Ground Support Worldwide during a briefing at the airport. “The cargo sector is viewed as an important component of our economy.”
ICN is already one of the world’s key cargo airports. Just 10 years after opening, the airport has increased its annual cargo tonnage by 125 percent.
Airports Council International currently ranks ICN as the fourth largest cargo airport based on 2010 data, up from No. 15 in its first year of operation. According to ACI, ICN handled 2.68 million tons of cargo in 2010, a 16 percent increase from 2009.
ICN’s current cargo facilities are spread across 21.6 million square feet and include separate terminals, warehouses and other related facilities. The immense South Cargo apron can park 32 B747 aircraft at the same time.
Beyond plenty of elbow room, ICN’s Air Cargo Information System offers a 100 percent online system that lets forwarders book, check and track shipments and generate electronic airway bills.
Other pioneering IT systems include UNI-PASS, an online clearance system that allows export clearance within 2 minutes, import clearance inside of 3 minutes and tax payment within 10 hours.
The introduction of RFID technology in 2010 for tracking practically all imported goods has further reduced processing times by up to 3 hours.
An unlikely 72-hole golf course separates cargo operations from the Airport Logistics Park opened in 2006 in a bid to make the airport a more attractive proposition for transit cargo arriving from China and traveling between South Korea and Europe, and North America and Southeast Asia.
Lee outlined ICN’s ambitious $2.7 billion expansion plan for cargo infrastructure. Blessed with land around it, ICN has an edge over other airports in the region, particularly Japanese and Chinese airports where expansion is precluded by limited space.
The airport is expanding cargo area by 1.1 million square meters primarily for express cargo and adding 500,000 square feet to the logistics park primarily for manufacturing.
“Korea is keen to attract companies interested in setting up manufacturing operations because, in the final analysis, manufacturing will provide a strong impetus to the air cargo sector,” Lee says. “Korea may not be a low-cost economy, but it is also a reliable source of high-quality products and services.”
The airport is also partnering with the corporate sector in an effort to achieve greater synergies. ICN, for example, is working closely with ASML, the world’s largest supplier of machines used to produce computer chips. ASML’s hub at ICN should provide a further push to cargo traffic as the company’s new products are launched in the market.
Also, a high-speed rail service traveling at more than 200 miles per hour will easily connect ICN with major South Korean cities by 2014 and further bolster cargo traffic by expediting delivery and providing support to express services throughout the country.
It was this “pro-business” approach that Karl Ulrich Garnadt, chairman and CEO of Lufthansa Cargo – the top non-Asian carrier in South Korea – noted during a recent visit to Seoul.
“There are good opportunities for South Korea’s air cargo market in 2012,” Garnadt told Ground Support Worldwide. “Growth impulses for cargo traffic will come from new hi-tech products, the automotive and pharmaceutical industry and free trade agreements between South Korea and several countries including the European Union.”
A free trade agreement already went into effect on March 15 between the United States and South Korea and had an immediate impact on ICN.
The International Air Cargo Association is an international trade association representing all elements of the air logistics network.
Under the agreement, Boeing will deliver 15 passenger aircraft and 10 freighters to Korean Air Co. - the world's biggest mover of air cargo.
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