Hong Kong Air Cargo Hub Gets 'SuperSized' T he Asian transport market is projected to grow from US$700 billion today to $1.3 trillion by 2020, and Asia will continue to lead the world air cargo industry in average annual growth rates. Domestic Chinese and intra-Asian air cargo markets are expanding 10.6 percent and 8.5 percent per year, respectively, and Hong Kong intends to handle a major portion of that volume. Air Hong Kong, a joint venture between Cathay Pacific and DHL Express, is Hong Kong's only dedicated freighter airline. The carrier operates a fleet of eight A300-600F aircraft (above) to key markets in east Asia. DHL's expansion of its Central Asia Hub at Hong Kong International Airport is helping the facility retain its status as a leading air cargo and logistics center.    Major air cargo players are in the midst of a building boom at Hong Kong's eight-year-old international airport at Chep Lap Kok on Lantau Island. Hong Kong-based Cathay Pacific is constructing new hangar and cargo facilities, and DHL announced in October 2005 a $110-million expansion of its Central Asia Hub at the airport, making it the DHL Central Asia SuperHub (CAS). The facility will increase in overall size from 18,200 sq. m. (196,000 sq. ft.) to 35,000 sq. m. (377,000 sq. ft.). The announcement came six years ahead of schedule in order to meet DHL's demand for cargo-handling operations in the region. DHL also operates hubs in Singapore, Sydney, Tokyo, Bangkok and Seoul. Why locate the SuperHub at Hong Kong?    "Hong Kong is a key gateway into China," says Chris Bresnahan, director, hub operations, at DHL Express Asia Pacific. "The hub's ideal location serves the Pearl River Delta area very well. About 40 percent of China's exports come through the Pearl River Delta, and over 70 percent of DHL's exports from China are channeled through Hong Kong to other markets around the world."    The facility currently handles 650 tons of cargo per day; in 2005, it handled 30 million shipments. The hub will handle 40 million shipments in 2008 - and 85 million to 90 million by 2019.    "The expansion of the Hub is an extension of DHL's long-term Asian growth strategy focusing on capacity building," says Bresnahan. "It will enable us to meet future growth requirements for many years - not only in China, but also intra-Asia and internationally." — Mark Arend